##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 Form 10-K
 
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the Fiscal Year Ended December 31, 2005
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 Commission File Number 000-30698
 SINA CORPORATION
 (Exact Name of Registrant as specified in its charter)
 Cayman Islands
    
    52-2236363(State or other jurisdiction of
    
    (I.R.S. Employer Identification Number)Incorporation or organization)
 Room 1802, United Plaza
1468 Nan Jing Road West
Shanghai 200040, China   (Address, including zip code, and telephone number, including area code, of Registrants principal executive offices)
 Securities registered pursuant to Section 12(b) of the Act:
None
 Securities registered pursuant to Section 12(g) of the Act:
Ordinary Share, $0.133 par value
Ordinary Share Purchase Rights
 þ o
 o þ
 þ o
 þ
  þ o o
 o þ
   DOCUMENTS INCORPORATED BY REFERENCE




---



##### 



SINA CORPORATION
 INDEX
  
 Page No.PART I.Item 1.
    
    Business
    
    
    3Item 1A.
    
    Risk Factors
    
    
    18Item 1B.
    
    Unresolved Staff Comments
    
    
    33Item 2.
    
    Properties
    
    
    33Item 3.
    
    Legal Proceedings
    
    
    34Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    34PART II.Item 5.
    
    Market for the Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities
    
    
    35Item 6.
    
    Selected Financial Data
    
    
    36Item 7.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    36Item 7A.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    48Item 8.
    
    Financial Statements and Supplementary Data
    
    
    50Item 9.
    
    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    82Item 9A.
    
    Controls and Procedures
    
    
    82Item 9B.
    
    Other Information
    
    
    82PART III.Item 10.
    
    Directors and Executive Officers of the Registrant
    
    
    83Item 11.
    
    Executive Compensation
    
    
    83Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    
    
    83Item 13.
    
    Certain Relationships and Related Transactions
    
    
    83Item 14.
    
    Principal Accountant Fees and Services
    
    
    83PART IV.Item 15.
    
    Exhibits and Financial Statement Schedules
    
    
    83Signatures
    
    
    83Power of Attorney
    
    
    84Exhibit IndexEXHIBIT 10.47EXHIBIT 10.48EXHIBIT 10.49EXHIBIT 21.1EXHIBIT 23.1EXHIBIT 23.2EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1EXHIBIT 32.2
  2




---



##### Table of Contents



INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
 This Annual Report on Form 10-K contains forward-looking statements. These statements relate
to future events or our future financial performance. In some cases, you can identify
forward-looking statements by terminology such as may, will, should, expect, plan,
anticipate, believe, estimate, predict, potential or continue, the negative of such
terms or other comparable terminology. These statements are only predictions. Actual events or
results may differ materially.
 Although we believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness
of the forward-looking statements. We undertake no duty to update any of the forward-looking
statements after the date of this report to conform such statements to actual results or to changes
in our expectations.
 Readers are also urged to carefully review and consider the various disclosures made by us
which attempt to advise interested parties of the factors which affect our business, including
without limitation the disclosures made under the caption Managements Discussion and Analysis of
Financial Condition and Results of Operations and under the caption Risk Factors included
herein.
 
 PART I
 
 Item 1: Business
 Overview
      3




---



##### Table of Contents



Market Opportunity
    Properties and Product Offerings
  Revenue
    
    
    Advertising (online advertising)Classification
    
    
    Non-advertising (MVAS, fee-based services, e-commerce, enterprise e-services)
 SINASINA.com
    
    SINA Mobile
    
    SINA Online
    
    SINA.net
    
    E-CommerceProperties and
     Services
    
    o      News and online content
    
    o      MVAS
    
    o      Community-based services
    
    o     Paid search
    
    o      Online shoppingo     Online advertising
    
    
    
    o     Online games
    
o      Enterprise solutionso     Casual gameso      Instant
messaging
 SINA.com
 SINA Portal Network
  Interest-Based Channels
  4




---



##### Table of Contents




    
    SINA News. SINA News aggregates feeds from news providers, bringing together content from
media companies such as China National Radio, Agence France-Presse (AFP), Associated
Press, Nanfang Daily, Xinhua Net, Beijing Zhongxin Net, and Xinhua News Agency. Through SINA
News, users have access to breaking news coverage from multiple sources and points of view.
    
    SINA Sports.SINA Sports provides access to up-to-the-minute news, real-time statistics
and scores, text broadcast programming, local and global coverage.
    
    SINA Entertainment.SINA Entertainment contains extensive coverage of the local and
international entertainment news and events that are of interest to our users, including
dining, movies, television programs, plays, operas as well as popular and classical music.
    
    SINA Technology.SINA Technology is a wide-ranging channel for news and information
relating to the technology industry along with product reviews and software downloads.
    
    SINA Finance.SINA Finance provides a comprehensive set of financial resources, from
business news to personal finance columns. SINA Finance also offers stock quotes from the
U.S., Shanghai, Shenzhen, Hong Kong and Taiwan stock exchanges as well as breaking news from
individual listed companies and market trends analysis.
    
    SINA Search.Launched in June 2005, iAsk combines the conventional web search algorithm
method with SINAs own differentiated indexing technology.
    
    SINA Auto.SINA Auto is a comprehensive information source for car buyers and auto
enthusiasts. The Auto channel covers the latest industry news, car reviews, comparison
charts and real-time interactive pricing and feature guides for car buyers.
    
    SINA Real Estate.SINA Real Estate provides the latest news, pricing and availability on
new, used and rental housing. It also features interactive electronic maps, discussion
forums and how-to guides for buyers, sellers and owners of properties on topics ranging from
home buying, selling, furnishing and repairing.
    
    SINA Game.One of the largest game information web sites in China, SINA Game provides
news and updates on popular online and PC games as well as game hardware and accessories in
China. SINA Game also provides downloads and entry points for users to popular online games
in China.
    
    SINA Video.SINA Video provides SINA broadband users a range of entertainment and
infotainment choices, including news, digital video, music TV, movies and more.
    
    SINA Blog & BBS.SINA Blog is an online publishing tool that allows users to collect and
document their personal stories and life experiences online. SINA BBS serves as a
communication platform for SINA Netizens to exchange and share their attitudes and
viewpoints most relevant to their everyday lives with others in the SINA online community.
 Advertising Services
   5




---



##### Table of Contents



China Internet
Weekly
 SINA Mobile
    News and Information
    
    Community
    

Multimedia Downloadso Headline news
    

o Dating and friendship
    

o Ring toneso Financial news
    
    o Games and quizzes
    

o Logos and pictureso Technology news
    
    o Educational products
    

o Screen saverso Sports newso Weather forecasto Jokes
  
    
    SMS.As many mobile phones are able to display and send text in Chinese, SINA developed a
suite of short messaging services that includes user-customized information subscription,
personal greetings, customized mobile phone screen decoration, personalized ring tones,
mobile dating service and mobile games.
    
    MMS.Using general packet radio service (GPRS) technology, MMS enables users to download
color pictures and sophisticated ring tones, as well as to transmit more data per message.
SINA currently provides MMS services in five major categories: MMS downloads, MMS news, MMS
love, MMS jokes, and MMS dating/games.
    
    WAP.SINAs WAP services allow users to browse content on their mobile phones similar to
accessing information on Internet web sites. SINAs WAP services use GPRS technology to
provide users with color pictures and graphics, sophisticated ring tones, news, chatting and
dating, games and entertainment.
    
    IVR.SINAs IVR service provides mobile phone users with voice content, including chatting
and dating, news information and interactive games.
    
    CRBT.SINAs CRBT service gives mobile phone users the option to customize their ring back
tone based on popular songs and special sound effects.
    
    Kjava.SINAs Kjava service offers a range of sophisticated games based on the Java
technologies on the 2.5G platform.
 6




---



##### Table of Contents



SINA Online
  SINA Mail.
 Premium Mail.
 SINA UC.
 SINA Dating.
 SINA Passport/Pay Point.
 Online Multiplayer Game.
 Casual Game.
 SINA.net
  Search and Listings
   7




---



##### Table of Contents



Corporate Email
  SINA E-Commerce
 SINAMall.
 Others.
  Strategic Relationships
  Content Partnerships
  Application and Service Partnership
  Technology Infrastructure
   8




---



##### Table of Contents



Seasonality
  Competition
  Portals
  Vertical Players
  International Players
  Traditional Media
   Intellectual Property and Proprietary Rights
  9




---



##### Table of Contents



Government Regulation and Legal Uncertainties
 The following description of PRC laws and regulations is based upon the opinions of Lawyers
from Jun He Law Offices, our PRC counsel. For a description of legal risks relating to our
ownership structure and business, see Risk Factors.
 Overview
  the Telecommunications Regulations of the Peoples Republic of
China
 Regulations for the Administration of Foreign-Invested Telecommunications
Enterprises
 Measures for the Administration of Internet Information Services described
below
 PRC Corporate Structure
  
    
    Beijing SINA Information Technology Co. Ltd. (BSIT)
    
    Star-Village.com (Beijing) Internet Technology Limited
    
    Beijing New Media Information Technology Co. Ltd.
 10




---



##### Table of Contents




    
    Beijing SINA Internet Technology Service Co. Ltd.
    
    Sina.com Technology (China) Co. Ltd.
    
    Fayco Network Technology Development (Shenzhen) Co. Ltd.
  
    
    Beijing SINA Internet Information Service Co., Ltd. (the ICP Company), a China
company controlled through business agreement. The ICP Company is responsible for operating
www.sina.com.cn in connection with its Internet content company license and selling the
advertisements to advertisers directly under its online advertising license. It is also
responsible for providing MVAS in China via third party mobile operators to the users. It
is 1.5% owned by Yan Wang, the Companys Chief Executive Officer and director, and 98.5%
owned by five other non-executive PRC employees of the Company. The registered capital of
the ICP Company is $2.5 million.
    
    Beijing SINA Interactive Advertising Co., Ltd. (the Ad Company), a China company
controlled through business agreement. The Ad Company was responsible for placing
advertisements on www.sina.com.cn for its third party customers under its advertising
license. It is 75% owned by Yan Wang and 25% owned by Beijing SINA Information Technology
Co. Ltd., one of the Companys subsidiaries in China. The registered capital of the Ad
Company is $0.1 million.
    
    Guangdong SINA Internet Information Service Co., Ltd. (the GDICP Company), a China
company controlled through business agreement. The GDICP Company is responsible for
providing MVAS in China via third party mobile operators to the users under its Internet
content company license. It became inactive since late 2004. It is 10% owned by Yan Wang
and 90% owned by five other non-executive PRC employees of the Company. The registered
capital of the GDICP Company is $0.4 million.
    
    Guangzhou Media Message Technologies, Inc. (Xunlong), a China company controlled
through business agreement. Xunlong is responsible for providing MVAS in China via third
party mobile operators to the users under its Internet content company license. It is owned
by three non-executive PRC employees of the Company. The registered capital of the Xunlong
is $1.2 million.
    
    Beijing Star-Village.com Cultural Development Co., Ltd. (StarVI), a China company
controlled through business agreement. StarVI is responsible for providing MVAS in China
via third party mobile operators to the users under its Internet content company license.
It is owned by three non-executive PRC employees of the Company. The registered capital of
StarVI is $1.2 million.
    
    Shenzhen Wang Xing Technology Co., Ltd. (Wangxing), a China company controlled
through business agreement. Wangxing is responsible for providing MVAS in China via third
party mobile operators to the users under its Internet content company license. It is owned
by three non-executive PRC employees of the Company. The registered capital of Wangxing is
$1.2 million.
    
    Beijing SINA Infinity Advertising Co., Ltd. (the IAD Company), a China company
controlled through business agreement. The IAD Company is responsible for placing
advertisements on www.sina.com.cn for its third party customers. It is owned by five
non-executive PRC employees of the Company. This entity has an approved business scope
including design, production, agency and issuance of advertisements. The registered capital
of the IAD Company is $0.1 million.
  11




---



##### Table of Contents



Classified Regulations
 Internet Information Services
 The Measures for the Administration of Internet Information Services
      Online News Publishing
 Provisional Regulations for the Administration of Web Site Operation
of News Publication Services
   12




---



##### Table of Contents



Provisions on the Administration of
Internet News Information Services
 Online Transmission of Audio-Visual Programs
 Publication of Audio-Visual Programs through Internet or
Other Information Network
 Reply on Approvals for Beijing SINA Internet Information Service Co., Ltd.
Engaging in the Business of Information Services Relating to Online Transmission of Audio-Visual
Programs
 MVAS
 Administrative Measures for Telecommunication
Business Operating Licenses
     13




---



##### Table of Contents



SMS
 Notice on Certain Issues Regarding the Regulation of
Short Message Services
 Internet Publishing
 Provisional Rules for the
Administration of Internet Publishing
  Online Games
 Rules for the Administration of Electronic Publications
 the Provisional Regulations for the Administration of Online Culture Certain Opinions regarding the
Development and Administration of Online Games,
 the
Notice on Carrying out the Decision from the State Council Regarding the Approval of Electronic and
Online Games Publications
 Circular of the Ministry of Culture on Strengthening the Examination of
Content of Online Games Products
  14




---



##### Table of Contents



Internet Medical, Health and Drug Information Services
 Measures for the Administration of Internet Medical and Health Information
Services Measures for
the Administration of Internet Drug Information Services
  Online Cultural Products
 Provisional Regulations for the Administration of Online Culture
 
    
    production, duplication, import, wholesale, retail, leasing or broadcasting of
online cultural products;
    
    publishing of online cultural products on the Internet or transmission thereof to
computers, fixed-line or mobile phones, radios, television sets or gaming consoles for
the purpose of browsing, reading, using or downloading such products; or
    
    exhibitions or contests related to online cultural products.
  Online Advertising
 Notice on Registration Issues for Enterprises Specialized in
Advertising Business
    15




---



##### Table of Contents



International Connections for Computer Information Networks
  
    
    Measures for the Administration of International Connections to Chinas Public Computer
Interconnected Networks (1996);
    
    Provisional Regulations of the Peoples Republic of China for the Administration of
International Connections to Computer Information Networks (1997) and their Implementing
Measures (1998);
    
    Reply Concerning the Verification and Issuance of Operating Permits for Business
Relating to International Connections for Computer Information Networks and for Public
Multimedia Telecommunications Business (1998); and
    
    Administrative Measures for International Communications Gateways (2002).
  
    
    be a PRC legal person;
    
    have the appropriate equipment, facilities and technical and administrative personnel;
    
    have implemented and registered a system of information security and censorship; and
    
    effect all international connections through an international communications gateway
established with the approval of the MII.
  Information Security and Censorship
  
    
    The Law of the Peoples Republic of China on the Preservation of State Secrets (1988)
and its Implementing Rules (1990);
    
    The Law of the Peoples Republic of China Regarding State Security (1993) and its
Implementing Rules (1994);
    
    Rules of the Peoples Republic of China for Protecting the Security of Computer
Information Systems (1994);
    
    Notice Concerning Work Relating to the Filing of Computer Information Systems with
International Connections (1996);
    
    Administrative Regulations for the Protection of Secrecy on Computer Information
Systems Connected to International Networks (1997);
    
    Regulations for the Protection of State Secrets for Computer Information Systems on the
Internet (2000);
    
    Notice issued by the Ministry of Public Security of the Peoples Republic of China
Regarding Issues Relating to the Implementation of the Administrative Measure for the
Security Protection of International Connections to Computer Information Networks (2000);
    
    The Decision of the Standing Committee of the National Peoples Congress Regarding the
Safeguarding of Internet Security (2000);
    
    Measures for the Administration of Commercial Web Site Filings for the Record (2002)
and their Implementing Rules (2002);
    
    Measures for the Administration of IP Address Archiving
(2005); and
    
    Provision on Technical Measures for Internet Security
Protection (2005).
  16




---



##### Table of Contents



Detailed Implementing Rules for the Measures for the Administration of
Commercial Web Site Filings for the Record,
 
    
    file with the BAIC and obtain electronic registration marks;
    
    place the registration marks on their web sites homepages; and
    
    register their web site names with the BAIC.
   Encryption Software
 Regulations
for the Administration of Commercial Encryption first Notic
 
    
    Only specialized hardware and software, the core functions of which are encryption
and decoding, fall within the administrative scope of the regulations as encryption
products and equipment containing encryption technology. Other products such as wireless
telephone, Windows software and browsers do not fall within this scope.
    
    The PRC government has already begun to study the laws in question in accordance with
WTO rules and Chinas external commitments, and will make revisions wherever necessary.
The Administrative Regulations on Commercial Encryptionwill also be subject to such
scrutiny and revision.
  Online education
 Measures for the Administration of Educational Web Sites and Online Education
School
  Administrative Protection of Internet Copyright
 Measures for the Administrative Protection of Internet Copyright Measures for Imposing Copyright Administrative Penalties
  Copyright Law
   17




---



##### Table of Contents



Employees
  Web Site Access to Our Periodic SEC Reports
 http://corp.sina.com http://www.sec.gov
 
 Item 1A: Risk Factors
 Because our operating history is limited and the revenue and income potential of our business
and markets are unproven, we cannot predict whether we will meet internal or external expectations
of future performance.
  
    
    offer new and innovative products;
    
    attract buyers for our MVAS;
    
    attract advertisers;
    
    attract a larger audience to our network;
    
    derive revenue from our users from fee-based Internet services;
    
    respond effectively to competitive pressures and address the effects of strategic relationships or corporate combinations
among our competitors;
    
    maintain our current, and develop new, strategic relationships;
    
    increase awareness of our brand and continue to build user loyalty;
    
    attract and retain qualified management and employees;
    
    upgrade our technology to support increased traffic and expanded services; and
    
    expand the content and services on our network.
 18




---



##### Table of Contents



Until recently, we had incurred accumulated deficits and we may incur future losses.
  We are relying on advertising sales as a significant part of our future revenue, but the
online advertising market is subject to many uncertainties, which could cause our advertising
revenues to decline.
  
    
    the development and retention of a large base of users possessing demographic characteristics attractive to advertisers;
    
    increased competition and potential downward pressure on online advertising prices and limitations on inventory;
    
    the development of independent and reliable means of verifying levels of online advertising and traffic; and
    
    the effectiveness of our advertising delivery, tracking and reporting systems.
   We are relying on MVAS for a significant portion of our future revenue.
  
    
    our ability to develop new services that become accepted by the market.
    
    our ability to retain existing customers of our subscription services.
    
    our ability to attract new subscribers in a cost-effective manner.
    
    competitors, including mobile operators, may launch competing or better products than ours.
    
    changes in policy, process and/or system by China Mobile and/or China Unicom, on whom we rely
for service delivery, billing and fee collection, and who in the past have made sudden changes
that have significantly impacted our revenues and may continue to do so in the future.
    
    changes in government regulations, which could restrict our MVAS offering and/or our ability to
market our services.
  19




---



##### Table of Contents



With respect to MVAS, we rely on China Mobile and China Unicom for service delivery,
billing and fee collection.
    
    
    In mid 2004, mobile operators began transitioning SMS to new billing platforms,
which has resulted in added operational controls and procedures in areas such as customer
subscription and customer billing. Such change has increased the difficulties for new user
recruitment and the failure rate for fee collection from our SMS users.
    
    In January 2005, China Mobile stopped its MMS Album service, which allowed
users to retrieve their subscribed MMS messages from China Mobiles website when the
subscribed MMS messages could not be successfully delivered to their mobile phones. With the
termination of MMS Album, we are no longer able to collect fees from users when the MMS
messages could not be delivered to the users mobile phones.
    
    In March 2005, China Mobile began migrating MMS onto a new billing platform,
which has resulted in added operational controls and procedures and, correspondingly,
increased difficulties for new user recruitment and increased the failure rate for fee
collection from our users.
    20




---



##### Table of Contents



The markets for MVAS and Internet services are highly competitive, and we may be unable to
compete successfully against new entrants and established industry competitors, some of which have
greater financial resources than we do or currently enjoy a superior market position than we do.
    21




---



##### Table of Contents



Our investment in online games, search and instant messaging may not be successful.
  We may not be able to manage our expanding operations effectively, which could harm our
business.
  If we fail to successfully develop and introduce new products and services, our competitive
position and ability to generate revenues could be harmed.
  If we are unable to keep up with the rapid technological changes of the Internet industry, our
business may suffer.
  22




---



##### Table of Contents



Our strategy of acquiring complementary assets, technologies and businesses and entering into
joint ventures may fail and may result in equity or earnings dilution.
  Our business and growth could suffer if we are unable to hire and retain key personnel that
are in high demand.
  We may be adversely affected by complexity, uncertainties and changes in PRC regulation of
Internet business and companies, including limitations on our ability to own key assets such as our
website.
  
    
    We only have contractual control over our website in China; we do not own it due to the
restriction of foreign investment in businesses providing value-added telecommunication
services, including computer information services, MVAS or electronic mail box services.
    
    In addition, uncertainties relating to the regulation of the Internet business in
China, including evolving licensing practices, give rise to the risk that permits, licenses
or operations at some of our companies may be subject to challenge, which may be disruptive
to our business, or subject us to sanctions, requirements to increase capital or other
conditions or enforcement, or compromise enforceability of related contractual
arrangements, or have other harmful effects on us.
    
    On December 11, 2001, the day China formally joined the World Trade Organization, the
PRC State Council promulgated the FITE Regulations, which became effective on January 1,
2002. The FITE Regulations stipulate that the foreign party to a foreign-invested
telecommunications enterprise can hold an equity share in such foreign-invested
telecommunications enterprise that provides basic telecom services or value-added telecom
services, ultimately not to exceed 49% or 50%, respectively. The Administrative Measures
for Telecommunications Business Operating License were promulgated by the Chinese Ministry
of Information Industry (MII) on December 26, 2001 and came into effect on January 14, 2002
to
supplement the FITE Regulations. However, there are still uncertainties regarding the
interpretation and application of the FITE Regulations.
 23




---



##### Table of Contents




    
    The numerous and often vague restrictions on acceptable content in China subject us to
potential civil and criminal liability, temporary blockage of our website or complete
cessation of our website. For example, the State Secrecy Bureau, which is directly
responsible for the protection of state secrets of all Chinese government and Chinese
Communist Party organizations, is authorized to block any website it deems to be leaking
state secrets or failing to meet the relevant regulations relating to the protection of
state secrets in the distribution of online information.
    
    Because the definition and interpretation of prohibited content are in many cases vague
and subjective, it is not always possible to determine or predict what and how content
might be prohibited under existing restrictions or restrictions that might be imposed in
the future. For example, in January 2005, the Chinese State Administration of Radio, Film &
Television (SARFT), which regulates radio and television stations in China, issued a
notice prohibiting commercials for MVAS related to fortune-telling from airing on radio
and television stations, effective in February 2005. This notice could also lead to further
actions by other Chinese government authorities to prohibit the sale of such
fortune-telling related SMS, which could have a material adverse effect on our financial
position, results of operations, or cash flows. SARFT or other Chinese government
authorities may prohibit the marketing of other MVAS via a channel we depend on to generate
revenues, which could also have a material adverse effect on our financial position,
results of operations or cash flows.
    
    Certain Chinese governmental authorities have stated publicly that they are in the
process of preparing new laws and regulations that will govern Internet activities. The
areas of regulation currently include online advertising, online news reporting, online
publishing, and the provision of industry-specific (e.g., drug-related) information over
the Internet. Other aspects of our online operations may be subject to regulation in the
future. Our operations may not be consistent with these new regulations when they are put
into effect and, as a result, we could be subject to severe penalties as discussed above.
    
    The governing body of Chinas mobile industry, from time to time issues policies that
regulate the business practices relating to MVAS. We cannot predict the timing or substance
of such regulations. Such regulations may have a negative impact on our business.
  In order to comply with PRC regulatory requirements, we operate our main businesses through
companies with which we have contractual relationships but in which we do not have controlling
ownership. If the PRC government determines that our agreements with these companies are not in
compliance with applicable regulations, our business in the PRC could be adversely affected.
   We rely on contractual arrangements with our VIEs for our China operations, which may not be
as effective in providing control over these entities as direct ownership.
  24




---



##### Table of Contents



If tax benefits currently available to us in China were no longer available, our effective
income tax rates for our China operations could increase to 33%.
    Restrictions on paying dividends or making other payments to us bind our subsidiaries and VIEs
in China.
  25




---



##### Table of Contents



Currency fluctuations and restrictions on currency exchange may adversely affect our
business, including limiting our ability to convert Chinese renminbi into foreign currencies and,
if renminbi were to decline in value, reducing our revenues in U.S. dollar terms.
 Even if we are in compliance with Chinese governmental regulations relating to licensing and
foreign investment prohibitions, the Chinese government may prevent us from advertising or
distributing content that it believes is inappropriate and we may be liable for such content or we
may have to stop profiting from such content.
     The law of the Internet remains largely unsettled, which subjects our business to legal
uncertainties that could harm our business.
  26




---



##### Table of Contents



The Chinese legal system has inherent uncertainties that could limit the legal protections
available to you.
  You may experience difficulties in effecting service of legal process, enforcing foreign
judgments or bringing original actions in China based on United States or other foreign laws
against us.
  We may have to register our encryption software with Chinese regulatory authorities, and if
they request that we change our encryption software, our business operations could be disrupted as
we develop or license replacement software.
 Regulations for the Administration of Commercial Encryption
 Privacy concerns may prevent us from selling demographically targeted advertising in the
future and make us less attractive to advertisers.
 Hong Kong Personal Data Ordinance
 27




---



##### Table of Contents



Concerns about the security of electronic commerce transactions and confidentiality of
information on the Internet may reduce use of our network and impede our growth.
  We may not be able to adequately protect our intellectual property, which could cause us to be
less competitive.
  We may be exposed to infringement claims by third parties, which, if successful, could cause
us to pay significant damage awards.
  We may be subject to claims based on the content we provide over our network and the products
and services sold on our network, which, if successful, could cause us to pay significant damage
awards.
   We have contracted with third parties to provide content and services for our portal network
and we may lose users and revenue if these arrangements are terminated.
   28




---



##### Table of Contents



Underdeveloped telecommunications infrastructure has limited, and may continue to limit, the
growth of the Internet market in China which, in turn, could limit our ability to grow our
business.
  We must rely on the Chinese government to develop Chinas Internet infrastructure and, if it
does not develop this infrastructure, our ability to grow our business could be hindered.
  Our operations could be disrupted by unexpected network interruptions caused by system
failures, natural disasters or unauthorized tamperings with our systems.
   Future outbreaks of Severe Acute Respiratory Syndrome (SARS), Avian flu or other widespread
public health problems could adversely affect our business.
  29




---



##### Table of Contents



Political and economic conditions in Greater China and the rest of Asia are unpredictable and
may disrupt our operations if these conditions become unfavorable to our business.
   We issued $100 million of zero coupon convertible subordinated notes due 2023, or possibly
earlier upon a change of control, which we may not be able to repay in cash and could result in
dilution of our basic earnings per share.
  Currency fluctuations and restrictions on currency exchange may adversely affect our business,
including limiting our ability to convert Chinese renminbi into foreign currencies and, if Chinese
renminbi were to decline in value, reducing our revenues in U.S. dollar terms.
  30




---



##### Table of Contents



Changes to existing accounting pronouncements, including SFAS 123R, or taxation rules or
practices may adversely affect our reported results of operations or how we conduct our business.
  We may be required to record a significant charge to earnings if we must reassess our goodwill
or amortizable intangible assets arising from acquisitions.
  31




---



##### Table of Contents



While we believe that we currently have adequate internal control procedures in place, we are
still exposed to potential risks from recent legislation requiring companies to evaluate controls
under Section 404 of the Sarbanes-Oxley Act of 2002.
  You should not place undue reliance on our financial guidance, nor should you rely on our
quarterly operating results as an indication of our future performance because our results of
operations are subject to significant fluctuations.
  Our stock price has been historically volatile and may continue to be volatile, which may make
it more difficult for you to resell shares when you want at prices you find attractive.
  We may be classified as a passive foreign investment company, which could result in adverse
U.S. tax consequences to U.S. investors.
  32




---



##### Table of Contents



We have a single shareholder who can substantially influence the outcome of all matters voted
upon by our shareholders and whose interests may not be aligned with yours.
  Anti-takeover provisions in our charter documents and SINAs shareholder rights plan may
discourage our acquisition by a third party, which could limit our shareholders opportunity to
sell their shares at a premium.
    
 Item 1B: Unresolved Staff Comments
  
 Item 2: Properties
  33




---



##### Table of Contents



Item 3: Legal Proceedings
  In re SINA
Corporation Securities Litigation
  
 Item 4: Submission of Matters to a Vote of Security Holders
  34




---



##### Table of Contents



PART II
 
 Item 5: Market for the Registrants Common Equity, Related Stockholder Matters and Issuer Purchases
of Equity Securities
 Market Information
  2005
    
    2004High
    
    Low
    
    High
    
    LowFirst Quarter
    
    
    34.12
    
    
    
    23.03
    
    
    
    48.25
    
    
    
    35.96Second Quarter
    
    
    32.97
    
    
    
    25.81
    
    
    
    41.19
    
    
    
    25.97Third Quarter
    
    
    29.78
    
    
    
    24.82
    
    
    
    31.54
    
    
    
    19.78Fourth Quarter
    
    
    26.88
    
    
    
    23.65
    
    
    
    38.85
    
    
    
    26.18
  Securities authorized for issuance under equity compensation plans
  Number ofsecuritiesremaining availablefor future issuanceunder equityWeighted average
    
    compensation plansNumber of securities to
    
    exercise price of
    
    (excludingbe issued upon exercise
    
    outstanding
    
    securitiesof outstanding options,
    
    options, warrants
    
    reflected in columnPlan Category
    
    warrants and rights
    
    and rights
    
    (a))(a)
    
    (b)
    
    (c)Equity compensation plans approved by security holders
    
    
    3,610,138
    (1)
    
    $
    14.97
    
    
    
    2,680,680
    (1)(2)Equity compensation plans not approved by security holders
    
    
    
    
    
    
    N/A
    
    
    
    Total
    
    
    3,610,138
    
    
    $
    14.97
    
    
    
    2,680,680
 Issuer Purchases of Equity Securities
  
 (1)
    
    Excludes shares under the 1999 Employee Stock Purchase Plan which was terminated by
the Board of Directors of the Company effective as of August 1, 2005.(2)
    
    Includes shares available for future issuance under the 1999 Stock Plan (the 1999 Plan).
The 1999 Plan includes an evergreen feature, which provides for an automatic annual increase in
the number of ordinary shares available under the plan on the first day of each of the fiscal years
through 2005, equal to the lesser of 750,000 shares, 3% of our outstanding ordinary shares on the
last day of the immediately preceding fiscal year, or a lesser number of shares determined by the
Board of Directors. 35




---



##### Table of Contents



Item 6: Selected Financial Data
  Six monthsendedYears ended December 31,
    
    
    December 31,
    
    
    Years ended June 30,2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2002
    
    
    2002
    
    
    2001(unaudited)(in thousands, except per share data)Operations:Net revenues
    
    $
    193,552
    
    
    $
    199,987
    
    
    $
    114,285
    
    
    $
    38,894
    
    
    $
    23,216
    
    
    $
    28,508
    
    
    $
    26,683Gross profit
    
    
    130,445
    
    
    
    138,376
    
    
    
    79,848
    
    
    
    23,385
    
    
    
    14,674
    
    
    
    14,900
    
    
    
    11,329Income (loss) before income taxes
    
    
    45,525
    
    
    
    69,224
    
    
    
    32,318
    
    
    
    (4,949
    )
    
    
    916
    
    
    
    (16,092
    )
    
    
    (36,351
    )Net income (loss)*
    
    
    43,115
    
    
    
    65,996
    
    
    
    31,423
    
    
    
    (4,949
    )
    
    
    916
    
    
    
    (16,092
    )
    
    
    (36,351
    )Net income (loss) per share*:Basic
    
    $
    0.82
    
    
    $
    1.33
    
    
    $
    0.66
    
    
    $
    (0.11
    )
    
    $
    0.02
    
    
    $
    (0.36
    )
    
    $
    (0.91
    )Diluted
    
    $
    0.75
    
    
    $
    1.15
    
    
    $
    0.58
    
    
    $
    (0.11
    )
    
    $
    0.02
    
    
    $
    (0.36
    )
    
    $
    (0.91
    )
 December 31,
    
    
    June 30,2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2002
    
    
    2001(in thousands)
    
    
    (in thousands)Financial position:Cash, cash equivalents and
short-term investments
    
    $
    300,689
    
    
    $
    275,635
    
    
    $
    227,164
    
    
    $
    96,736
    
    
    $
    93,151
    
    
    $
    109,789Working capital
    
    
    297,910
    
    
    
    252,027
    
    
    
    219,866
    
    
    
    91,814
    
    
    
    89,914
    
    
    
    102,246Total assets
    
    
    468,721
    
    
    
    430,425
    
    
    
    289,897
    
    
    
    130,479
    
    
    
    121,355
    
    
    
    133,122Long-term liabilities
    
    
    100,000
    
    
    
    102,142
    
    
    
    100,000
    
    
    
    
    
    
    
    
    
    
    
    Total shareholders equity
    
    
    319,622
    
    
    
    253,345
    
    
    
    159,507
    
    
    
    117,387
    
    
    
    111,690
    
    
    
    119,967
 
 *
    
    Fiscal 2003, 2004 and 2005, include a net loss from investment of $7.0 million, $4.6 million
and $3.3 million, respectively. Six months ended December 31, 2002 includes a loss from
investment of $0.3 million. Twelve months ended June 30, 2001 and 2002 include a loss from
investment of $0.9 million and $0.6 million, respectively. 
 Item 7: Managements Discussion and Analysis of Financial Condition and Results of Operations
 This report contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Exchange Act, including, without limitation,
statements regarding our expectations, beliefs, intentions or future strategies that are signified
by the words expect, anticipate, intend, believe, the negative of such terms or other
comparable terminology. All forward-looking statements included in this document are based on
information available to us on the date hereof, and we undertake no obligation to update any such
forward-looking statements. Actual results could differ materially from those projected in the
forward-looking statements. In evaluating our business, you should carefully consider the
information set forth below under the caption Business  Risk Factors set forth herein. We
caution you that our businesses and financial performance are subject to substantial risks and
uncertainties, including the factors identified in Business  Risk Factors, that could cause
actual results to differ materially from those in the forward-looking statements.
 Overview
  36




---



##### Table of Contents



Critical Accounting Policies, Judgments and Estimates
   Revenue recognition
 Advertising
  37




---



##### Table of Contents



MVAS
    Advertising expenses
  Goodwill and intangible assets
   38




---



##### Table of Contents



Income taxes
  Foreign currency
  Equity investments
  Marketable
debt and equity securities
  Recent Accounting Pronouncements
  39




---



##### Table of Contents



Results of Operations
 Net revenues
 Years ended December 31,2005
    
    
    2004
    
    
    2003
    
    
    % of Change(in thousands, except percentages)YOY
    
    
    YOY05&04
    
    
    04&03Net RevenuesAdvertising
    
    $
    84,999
    
    
    
    44
    %
    
    $
    65,417
    
    
    
    33
    %
    
    $
    41,173
    
    
    
    36
    %
    
    
    30%
    
    
    
    59%Non-advertising:MVAS
    
    
    98,070
    
    
    
    51
    %
    
    
    123,954
    
    
    
    62
    %
    
    
    64,377
    
    
    
    56
    %
    
    
    -21%
    
    
    
    93%Others
    
    
    10,483
    
    
    
    5
    %
    
    
    10,616
    
    
    
    5
    %
    
    
    8,735
    
    
    
    8
    %
    
    
    -1%
    
    
    
    22%Subtotal
    
    
    108,553
    
    
    
    56
    %
    
    
    134,570
    
    
    
    67
    %
    
    
    73,112
    
    
    
    64
    %
    
    
    -19%
    
    
    
    84%Total net revenues
    
    $
    193,552
    
    
    
    100
    %
    
    $
    199,987
    
    
    
    100
    %
    
    $
    114,285
    
    
    
    100
    %
    
    
    -3%
    
    
    
    75%
  Advertising.
  Non-advertising.
 MVAS
 Years ended December 31,2005
    
    
    2004
    
    
    2003
    
    
    % of Change(in thousands, except percentages)YOY
    
    
    YOY05&04
    
    
    04&032.0G products
    
    $
    83,745
    
    
    
    85
    %
    
    $
    109,712
    
    
    
    89
    %
    
    $
    63,287
    
    
    
    98
    %
    
    
    -24%
    
    
    
    73%2.5G products
    
    
    14,325
    
    
    
    15
    %
    
    
    14,242
    
    
    
    11
    %
    
    
    1,090
    
    
    
    2
    %
    
    
    1%
    
    
    
    1207%Total MVAS revenues
    
    $
    98,070
    
    
    
    100
    %
    
    $
    123,954
    
    
    
    100
    %
    
    $
    64,377
    
    
    
    100
    %
    
    
    -21%
    
    
    
    93%
  40




---



##### Table of Contents



Other non-advertising revenues
   41




---



##### Table of Contents



Cost of revenues
 Years ended December 31,2005
    
    
    2004
    
    
    2003
    
    
    % of Change
    
    
    % of ChangeYOY 05 & 04
    
    
    YOY 04 & 03(In thousands, except percentages)Cost of revenues:Advertising
    
    $
    27,627
    
    
    $
    22,187
    
    
    $
    14,001
    
    
    
    25
    %
    
    
    59
    %Non-advertising:MVAS
    
    
    33,814
    
    
    
    38,277
    
    
    
    19,455
    
    
    
    -12
    %
    
    
    97
    %Other
    
    
    1,666
    
    
    
    1,147
    
    
    
    950
    
    
    
    45
    %
    
    
    21
    %Subtotal
    
    
    35,480
    
    
    
    39,424
    
    
    
    20,405
    
    
    
    -10
    %
    
    
    93
    %Total cost of revenues
    
    $
    63,107
    
    
    $
    61,611
    
    
    $
    34,406
    
    
    
    2
    %
    
    
    79
    %
  Advertising.
  Non-advertising.
   42




---



##### Table of Contents



Gross profit margins
 Years ended December 31,2005
    
    2004
    
    2003Gross profit margins:Advertising
    
    
    67
    %
    
    
    66
    %
    
    
    66
    %Non-advertising:MVAS
    
    
    66
    %
    
    
    69
    %
    
    
    70
    %Other
    
    
    84
    %
    
    
    89
    %
    
    
    89
    %Subtotal
    
    
    67
    %
    
    
    71
    %
    
    
    72
    %Overall
    
    
    67
    %
    
    
    69
    %
    
    
    70
    %
  Advertising.
 Non-advertising.
  Operating expenses
 Years ended December 31,2005
    
    2004
    
    2003% of net
    
    
    
    
    
    % of net
    
    
    
    
    
    % of netrevenues
    
    
    
    
    
    revenues
    
    
    
    
    
    revenues(in thousands, except percentages)Sales and marketing expenses
    
    $
    51,690
    
    
    
    27
    %
    
    $
    39,585
    
    
    
    20
    %
    
    $
    21,741
    
    
    
    19
    %Product development expenses
    
    $
    15,268
    
    
    
    8
    %
    
    $
    10,355
    
    
    
    5
    %
    
    $
    6,340
    
    
    
    6
    %General and administrative expenses
    
    $
    18,820
    
    
    
    10
    %
    
    $
    15,619
    
    
    
    8
    %
    
    $
    11,551
    
    
    
    10
    %
 Sales and marketing expenses.
  Product development expenses.
 43




---



##### Table of Contents



General and administrative expenses.
 Stock-based compensation.
 Amortization of intangible assets.
 Write-off of intangible assets.
 Interest and other income, net
  Amortization of convertible debt issuance cost
  Gain on sale of business
  44




---



##### Table of Contents



Loss on investments and investment in Tidetime Sun, net
  Years ended December 31,2005
    
    
    2004
    
    
    2003(In thousands)Tidetime Sun
    
    $
    (3,231
    )
    
    $
    (2,550
    )
    
    $
    (6,063
    )Other
    
    
    56
    
    
    
    1,160
    
    
    
    $
    (3,175
    )
    
    $
    (1,390
    )
    
    $
    (6,063
    )% of total net revenues
    
    
    (2
    %)
    
    
    (1
    %)
    
    
    (5
    %)
  Loss on equity investments
  Years ended December 31,2005
    
    
    2004
    
    
    2003(In thousands)Gain from the sale of equity investment *
    
    $
    2,649
    
    
    $
    
    
    
    
    Share of loss on equity investments
    
    
    (2,810
    )
    
    
    (3,165
    )
    
    
    (914
    )$
    (161
    )
    
    $
    (3,165
    )
    
    $
    (914
    )% of total net revenues
    
    
    *
    *
    
    
    (2
    %)
    
    
    (1
    %)
 
 *
    
    During the three months ended December 31, 2005, we sold our 33% interest in COAL
(a.k.a. 1Pai.com), an online auction joint venture with Yahoo! Inc., to Alibaba.com. Our share of
loss on investment from COAL was $2.2 million for both 2005 and 2004. We began the joint venture
with Yahoo! in January 2004.**
    
    Less than 1% Provision for income taxes
 Years ended December 31,2005
    
    
    2004
    
    
    2003(In thousands)Income tax provision
    
    $
    2,671
    
    
    $
    3,441
    
    
    $
    1,802Income tax benefit
    
    
    (261
    )
    
    
    (213
    )
    
    
    (907
    )Total
    
    $
    2,410
    
    
    $
    3,228
    
    
    $
    895Effective tax rate for China operation
    
    
    5
    %
    
    
    4
    %
    
    
    2
    %
  Liquidity and Capital Resources
 As of December 312005
    
    2004
    
    2003(In thousands)Cash and cash equivalents and short-term investments
    
    $
    300,689
    
    
    $
    275,635
    
    
    $
    227,164Working capital
    
    $
    297,910
    
    
    $
    252,027
    
    
    $
    219,866Shareholders equity
    
    $
    319,622
    
    
    $
    253,345
    
    
    $
    159,507
  45




---



##### Table of Contents



Years ended December 31,2005
    
    
    2004
    
    
    2003(In thousands)Net cash provided by operating activities
    
    $
    58,273
    
    
    $
    74,858
    
    
    $
    47,246Net cash used in investing activities
    
    
    (133,810
    )
    
    
    (95,007
    )
    
    
    (46,700
    )Net cash provided by financing activities
    
    
    7,015
    
    
    
    15,769
    
    
    
    104,340Effect of exchange rate changes on cash and cash equivalents
    
    
    3,164
    
    
    
    
    
    
    
    Net increase (decrease) in cash and cash equivalents
    
    
    (65,358
    )
    
    
    (4,380
    )
    
    
    104,886Cash and cash equivalents at beginning of period
    
    
    153,768
    
    
    
    158,148
    
    
    
    53,262Cash and cash equivalents at end of period
    
    $
    88,410
    
    
    $
    153,768
    
    
    $
    158,148
 Operating activities
   46




---



##### Table of Contents



Investing activities
    Financing activities
    Contractual Obligations
  Payments due by periodLess than one
    
    
    One to
    
    
    Three to
    
    
    More thanTotal
    
    
    Year
    
    
    three years
    
    
    five years
    
    
    five years( In thousands)Long-term debt
    
    $
    100,000
    
    
    $
    
    
    
    $
    100,000
    
    
    $
    
    
    
    $
    Operating lease obligations
    
    
    3,476
    
    
    
    1,423
    
    
    
    2,053
    
    
    
    
    
    
    
    Purchase commitments
    
    
    13,287
    
    
    
    9,108
    
    
    
    4,051
    
    
    
    46
    
    
    
    82Total contractual obligations
    
    $
    116,763
    
    
    $
    10,531
    
    
    $
    106,104
    
    
    $
    46
    
    
    $
    82
 47




---



##### Table of Contents



Legal Proceedings
 Off-Balance Sheet Commitments and Arrangements
  
 Item 7A. Quantitative and Qualitative Disclosures about Market Risk
 Interest Rate and Security Market Risk
   Foreign Currency Exchange Rate Risk
  48




---



##### Table of Contents



TranslationChange in the value of
    
    adjustments to
    
    Transaction gainChinese renminbi against the
    
    comprehensive income
    
    (loss)U.S. dollar
    
    (in thousands)
    
    (in thousands)Appreciate 2%
    
    $
    4,870
    
    
    $
    (2
    )Appreciate 5%
    
    $
    12,190
    
    
    $
    (5
    )Depreciate 2%
    
    $
    (4,860
    )
    
    $
    2Depreciate 5%
    
    $
    (12,120
    )
    
    $
    5
 Investment Risk
 Equity investments
    49




---



##### Table of Contents



Item 8: Financial Statements and Supplementary Data
 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
 PageConsolidated Financial Statements:Managements Report on Internal Control over Financial Reporting
    
    
    51Report of Independent Registered Public Accounting Firm
    
    
    52Consolidated Balance Sheets at December 31, 2005 and 2004
    
    
    53Consolidated Statements of Operations for the years ended December 31, 2005, 2004 and 2003
    
    
    54Consolidated Statements of Shareholders Equity for the years ended December 31, 2005, 2004 and 2003
    
    
    55Consolidated Statements of Cash Flows for the years ended December 31, 2005, 2004 and 2003
    
    
    56Notes to Consolidated Financial Statements
    
    
    58Supplementary Financial Data:Quarterly Financial Results for the two years ended December 31, 2005 and 2004
    
    
    81
 50




---



##### Table of Contents



MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
 Internal
Control-integrated Framework
   51




---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
   Consolidated financial statements
  Internal control over financial reporting
 Internal
Control  Integrated Framework Internal
Control  Integrated Framework
   
  52




---



##### Table of Contents



SINA CORPORATION
 
 CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
 December 31,2005
    
    
    2004ASSETSCurrent assets:Cash and cash equivalents
    
    $
    88,410
    
    
    $
    153,768Short-term investments
    
    
    212,279
    
    
    
    121,867Accounts receivable, net of allowances for doubtful accounts of $2,443 and $1,754, respectively
    
    
    33,940
    
    
    
    39,942Short-term deferred tax assets
    
    
    857
    
    
    
    689Prepaid expenses and other current assets
    
    
    11,523
    
    
    
    10,699Total current assets
    
    
    347,009
    
    
    
    326,965Investment in Tidetime Sun
    
    
    716
    
    
    
    5,468Property and equipment, net
    
    
    22,207
    
    
    
    16,152Equity investments
    
    
    3,261
    
    
    
    4,541Goodwill
    
    
    82,663
    
    
    
    61,172Intangible assets, net
    
    
    9,691
    
    
    
    13,218Other assets
    
    
    3,174
    
    
    
    2,909Total assets
    
    $
    468,721
    
    
    $
    430,425LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    1,582
    
    
    $
    2,052Accrued liabilities
    
    
    43,235
    
    
    
    68,384Income taxes payable
    
    
    4,282
    
    
    
    4,502Total current liabilities
    
    
    49,099
    
    
    
    74,938Convertible Debt
    
    
    100,000
    
    
    
    100,000Other long-term liabilities
    
    
    
    
    
    
    2,142Total liabilities
    
    
    149,099
    
    
    
    177,080Commitments and contingencies (Note 17)Shareholders equity:Ordinary Shares: $0.133 par value; 150,000 shares authorized; 53,265 and 51,359 shares
issued and outstanding
    
    
    7,084
    
    
    
    6,834Additional paid-in capital
    
    
    284,559
    
    
    
    263,912Retained earnings (accumulated deficit)
    
    
    26,057
    
    
    
    (17,058
    )Accumulated other comprehensive income (loss):Unrealized loss on investment in marketable securities
    
    
    (2,903
    )
    
    
    (395
    )Cumulative translation adjustments
    
    
    4,825
    
    
    
    52Total shareholders equity
    
    
    319,622
    
    
    
    253,345Total liabilities and shareholders equity
    
    $
    468,721
    
    
    $
    430,425
  53




---



##### Table of Contents



SINA CORPORATION
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
 Years ended December 31,2005
    
    
    2004
    
    
    2003Net revenues:Advertising
    
    $
    84,999
    
    
    $
    65,417
    
    
    $
    41,173Non-advertising
    
    
    108,553
    
    
    
    134,570
    
    
    
    73,112193,552
    
    
    
    199,987
    
    
    
    114,285Cost of revenues:Advertising
    
    
    27,627
    
    
    
    22,187
    
    
    
    14,001Non-advertising
    
    
    35,480
    
    
    
    39,424
    
    
    
    20,405Stock-based compensation
    
    
    
    
    
    
    
    
    
    
    3163,107
    
    
    
    61,611
    
    
    
    34,437Gross profit
    
    
    130,445
    
    
    
    138,376
    
    
    
    79,848Operating expenses:Sales and marketing
    
    
    51,690
    
    
    
    39,585
    
    
    
    21,741Product development
    
    
    15,268
    
    
    
    10,355
    
    
    
    6,340General and administrative
    
    
    18,820
    
    
    
    15,619
    
    
    
    11,551Stock-based compensation*
    
    
    
    
    
    
    
    
    
    
    523Amortization of intangible assets
    
    
    3,159
    
    
    
    3,492
    
    
    
    1,749Write-off of intangible assets
    
    
    
    
    
    
    
    
    
    
    903Total operating expenses
    
    
    88,937
    
    
    
    69,051
    
    
    
    42,807Income from operations
    
    
    41,508
    
    
    
    69,325
    
    
    
    37,041Interest and other income, net
    
    
    6,551
    
    
    
    5,139
    
    
    
    2,595Amortization of convertible debt issuance cost
    
    
    (685
    )
    
    
    (685
    )
    
    
    (341
    )Gain on sale of business
    
    
    1,487
    
    
    
    
    
    
    
    Loss on investments and investment in Tidetime Sun, net
    
    
    (3,175
    )
    
    
    (1,390
    )
    
    
    (6,063
    )Loss on equity investments, net
    
    
    (161
    )
    
    
    (3,165
    )
    
    
    (914
    )Income before income taxes
    
    
    45,525
    
    
    
    69,224
    
    
    
    32,318Provision for income taxes
    
    
    (2,410
    )
    
    
    (3,228
    )
    
    
    (895
    )Net income
    
    $
    43,115
    
    
    $
    65,996
    
    
    $
    31,423Basic net income per share
    
    $
    0.82
    
    
    $
    1.33
    
    
    $
    0.66Shares used in computing basic income per share
    
    
    52,485
    
    
    
    50,274
    
    
    
    47,840Diluted net income per share
    
    $
    0.75
    
    
    $
    1.15
    
    
    $
    0.58Shares used in computing diluted income per share
    
    
    58,792
    
    
    
    58,204
    
    
    
    54,794*Stock-based compensation expense by function:Sales and marketing
    
    $
    
    
    
    $
    
    
    
    $
    16Product development
    
    
    
    
    
    
    
    
    
    
    168General and administrative
    
    
    
    
    
    
    
    
    
    
    339$
    
    
    
    $
    
    
    
    $
    523
  54




---



##### Table of Contents



SINA CORPORATION
 
 CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
(In thousands)
 OrdinaryShares
    
    
    
    
    
    
    Retained
    
    
    AccumulatedAdditional
    
    
    Subject to
    
    
    
    
    
    
    Earnings
    
    
    Other
    
    
    TotalOrdinary Shares
    
    
    Paid-in
    
    
    Subsequent
    
    
    
    
    
    
    (Accumulated
    
    
    Comprehensive
    
    
    ShareholdersShares
    
    
    Amount
    
    
    Capital
    
    
    Issuance
    
    
    Others
    
    
    Deficit)
    
    
    Income(Loss)
    
    
    EquityBalances at December 31, 2002
    
    
    45,946
    
    
    $
    6,114
    
    
    $
    223,358
    
    
    $
    
    
    
    $
    (1,604
    )
    
    $
    (114,477
    )
    
    $
    3,996
    
    
    $
    117,387Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31,423
    
    
    
    
    
    
    
    31,423Unrealized loss on
marketable securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,514
    )
    
    
    (5,514
    )Currency translation
adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    37
    
    
    
    37Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25,946Issuance of ordinary shares
pursuant to stock plans, net
of repurchases
    
    
    1,737
    
    
    
    231
    
    
    
    5,777
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,008Repayment of notes
receivable from shareholders
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,050
    
    
    
    
    
    
    
    
    
    
    
    1,050Amortization of deferred
stock-based compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    554
    
    
    
    
    
    
    
    
    
    
    
    554Business acquisition
    
    
    944
    
    
    
    126
    
    
    
    7,087
    
    
    
    1,349
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,562Balances at December 31, 2003
    
    
    48,627
    
    
    
    6,471
    
    
    
    236,222
    
    
    
    1,349
    
    
    
    
    
    
    
    (83,054
    )
    
    
    (1,481
    )
    
    
    159,507Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    65,996
    
    
    
    
    
    
    
    65,996Unrealized gain on
marketable securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,115
    
    
    
    1,115Currency translation
adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23
    
    
    
    23Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    67,134Issuance of ordinary shares
pursuant to stock plans
    
    
    2,296
    
    
    
    305
    
    
    
    15,464
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15,769Business acquisition
    
    
    436
    
    
    
    58
    
    
    
    12,226
    
    
    
    (1,349
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10,935Balances at December 31, 2004
    
    
    51,359
    
    
    
    6,834
    
    
    
    263,912
    
    
    
    
    
    
    
    
    
    
    
    (17,058
    )
    
    
    (343
    )
    
    
    253,345Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    43,115
    
    
    
    
    
    
    
    43,115Unrealized loss on
marketable securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,508
    )
    
    
    (2,508
    )Currency translation
adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,773
    
    
    
    4,773Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    45,380Issuance of ordinary shares
pursuant to stock plans
    
    
    1,589
    
    
    
    208
    
    
    
    6,807
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,015Business acquisition
    
    
    317
    
    
    
    42
    
    
    
    13,840
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,882Balances at December 31, 2005
    
    
    53,265
    
    
    $
    7,084
    
    
    $
    284,559
    
    
    $
    
    
    
    $
    
    
    
    $
    26,057
    
    
    $
    1,922
    
    
    $
    319,622
  55




---



##### Table of Contents



SINA CORPORATION
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 Years ended December 31,2005
    
    
    2004
    
    
    2003Cash flows from operating activities:Net income
    
    $
    43,115
    
    
    $
    65,996
    
    
    $
    31,423Adjustments to reconcile net income to net cash provided by operating activities:Allowances for doubtful accounts
    
    
    2,271
    
    
    
    1,060
    
    
    
    1,348Loss on equity investments, net
    
    
    161
    
    
    
    3,165
    
    
    
    914Loss on disposal of property and equipment
    
    
    156
    
    
    
    33
    
    
    
    160Depreciation
    
    
    9,593
    
    
    
    5,827
    
    
    
    5,113Stock-based compensation
    
    
    
    
    
    
    
    
    
    
    554Amortization of convertible debt issuance cost
    
    
    685
    
    
    
    685
    
    
    
    341Amortization of intangible assets
    
    
    3,159
    
    
    
    3,492
    
    
    
    1,749Write-off of intangible assets
    
    
    
    
    
    
    
    
    
    
    903Gain on sale of business
    
    
    (1,487
    )
    
    
    
    
    
    
    Loss on investments and investment in Tidetime Sun, net
    
    
    3,175
    
    
    
    1,390
    
    
    
    6,063Changes in assets and liabilities (net of effect of acquisition and disposal):Accounts receivable
    
    
    4,324
    
    
    
    (19,469
    )
    
    
    (10,161
    )Prepaid expenses and other current assets
    
    
    3,227
    
    
    
    (2,586
    )
    
    
    (2,166
    )Deferred tax assets
    
    
    (148
    )
    
    
    218
    
    
    
    (907
    )Other assets
    
    
    (916
    )
    
    
    (120
    )
    
    
    (918
    )Accounts payable
    
    
    (513
    )
    
    
    671
    
    
    
    (792
    )Accrued liabilities
    
    
    (8,217
    )
    
    
    13,006
    
    
    
    11,821Income taxes payable
    
    
    (312
    )
    
    
    1,490
    
    
    
    1,801Net cash provided by operating activities
    
    
    58,273
    
    
    
    74,858
    
    
    
    47,246Cash flows from investing activities:Purchases of short-term investments
    
    
    (90,492
    )
    
    
    (53,043
    )
    
    
    (27,276
    )Acquisitions of property and equipment
    
    
    (15,369
    )
    
    
    (13,000
    )
    
    
    (6,058
    )Cash paid for acquisitions, net of cash acquired
    
    
    (26,141
    )
    
    
    (27,573
    )
    
    
    (10,548
    )Equity investments
    
    
    (3,024
    )
    
    
    (2,660
    )
    
    
    (2,818
    )Deposits on equity investment and acquisition
    
    
    (800
    )
    
    
    (241
    )
    
    
    Proceeds from sale of business, net
    
    
    1,730
    
    
    
    
    
    
    
    Proceeds from sale of equity investments
    
    
    286
    
    
    
    1,215
    
    
    
    Proceeds from sale of investment in Tidetime Sun
    
    
    
    
    
    
    295
    
    
    
    Net cash used in investing activities
    
    
    (133,810
    )
    
    
    (95,007
    )
    
    
    (46,700
    )Cash flows from financing activities:Proceeds from issuance of ordinary shares
    
    
    7,015
    
    
    
    15,769
    
    
    
    6,008Proceeds from issuance of convertible debt, net
    
    
    
    
    
    
    
    
    
    
    97,282Repayments of notes receivable from shareholders
    
    
    
    
    
    
    
    
    
    
    1,050Net cash provided by financing activities
    
    
    7,015
    
    
    
    15,769
    
    
    
    104,340Effect of exchange rate change on cash and cash equivalents
    
    
    3,164
    
    
    
    
    
    
    
    Net increase (decrease) in cash and cash equivalents
    
    
    (65,358
    )
    
    
    (4,380
    )
    
    
    104,886Cash and cash equivalents at the beginning of the year
    
    
    153,768
    
    
    
    158,148
    
    
    
    53,262Cash and cash equivalents at the end of the year
    
    $
    88,410
    
    
    $
    153,768
    
    
    $
    158,148
 56




---



##### Table of Contents



SINA CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(In thousands)
 Years ended December 31 ,2005
    
    
    2004
    
    
    2003Supplemental disclosure:Cash paid for income taxes
    
    $
    2,891
    
    
    $
    1,090
    
    
    $
    Cash paid for acquisitions, net:Cash paid for acquisitions
    
    $
    (26,141
    )
    
    $
    (29,100
    )
    
    $
    (12,904
    )Cash acquired
    
    
    
    
    
    
    1,527
    
    
    
    2,356$
    (26,141
    )
    
    $
    (27,573
    )
    
    $
    (10,548
    )Noncash financing activities:Ordinary shares issued and
subject to subsequent
issuance for acquisitions
    
    $
    13,882
    
    
    $
    12,284
    
    
    $
    8,562Deferred non-advertising
services exchanged for
equity interest in joint
venture
    
    $
    
    
    
    $
    3,430
    
    
    $
    
  57




---



##### Table of Contents



SINA CORPORATION
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 1. The Company and Summary of Significant Accounting Policies
 The Company
  Principles of consolidation and basis of presentation
    
    
    Beijing SINA Internet Information Service Co., Ltd. (the ICP Company), a China company
controlled through business agreement. The ICP Company is responsible for operating
www.sina.com.cn in connection with its Internet content company license and selling the
advertisements to advertisers directly under its online advertising license. It is also
responsible for providing MVAS in China via third party mobile operators to the users. It is
1.5% owned by Yan Wang, the Companys Chief Executive Officer and director, and 98.5% owned
by five other non-executive PRC employees of the Company. The registered capital of the ICP
Company is $2.5 million.
    
    Beijing SINA Interactive Advertising Co., Ltd. (the Ad Company), a China company
controlled through business agreement. The Ad Company was responsible for placing
advertisements on www.sina.com.cn for its third party customers under its advertising
license. It is 75% owned by Yan Wang and 25% owned by Beijing SINA Information Technology
Co. Ltd., one of the Companys subsidiaries in China. The registered capital of the Ad
Company is $0.1 million.
 58




---



##### Table of Contents




    
    Guangdong SINA Internet Information Service Co., Ltd. (the GDICP Company), a China company
controlled through business agreement. The GDICP Company is responsible for providing MVAS
in China via third party mobile operators to the users under its Internet content company
license. It became inactive since late 2004. It is 10% owned by Yan Wang and 90% owned by
five other non-executive PRC employees of the Company. The registered capital of the GDICP
Company is $0.4 million.
    
    Guangzhou Media Message Technologies, Inc. (Xunlong), a China company controlled
through business agreement. Xunlong is responsible for providing MVAS in China via third
party mobile operators to the users under its Internet content company license. It is owned
by three non-executive PRC employees of the Company. The registered capital of the Xunlong
is $1.2 million.
    
    Beijing Star-Village.com Cultural Development Co., Ltd. (StarVI), a China company
controlled through business agreement. StarVI is responsible for providing MVAS in China via
third party mobile operators to the users under its Internet content company license. It is
owned by three non-executive PRC employees of the Company. The registered capital of the
StarVI is $1.2 million.
    
    Shenzhen Wang Xing Technology Co., Ltd. (Wangxing), a China company controlled
through business agreement. Wangxing is responsible for providing MVAS in China via third
party mobile operators to the users under its Internet content company license. It is owned
by three non-executive PRC employees of the Company. The registered capital of Wangxing is
$1.2 million.
    
    Beijing SINA Infinity Advertising Co., Ltd. (the IAD Company), a China company
controlled through business agreement. The IAD Company is responsible for placing
advertisements on www.sina.com.cn for its third party customers. It is owned by five
non-executive PRC employees of the Company. This entity has an approved business scope
including design, production, agency and issuance of advertisements. The registered capital
of the IAD Company is $0.1 million.
  Use of estimates
  Cash equivalents
  Available- for- sale securities
  59




---



##### Table of Contents



Allowances for doubtful accounts
  Property and equipment
   Equity investments
  Business combinations
  Goodwill and intangible assets, net
  60




---



##### Table of Contents



Revenue recognition
 Advertising
   Non-advertising
 MVAS
  61




---



##### Table of Contents



Fee-based services.
 E-commerce.
 Enterprise services.
 62




---



##### Table of Contents



Cost of revenues
 Advertising
  Non-advertising
  Product development expenses
  Advertising expenses
  Stock-based incentive compensation
  63




---



##### Table of Contents



Years ended December 31,2005
    
    
    2004
    
    
    2003( in thousands)Net income:As reported
    
    $
    43,115
    
    
    $
    65,996
    
    
    $
    31,423Add: Stock-based employee
compensation expenses
included in reported net
income
    
    
    
    
    
    
    
    
    
    
    554Deduct: Employee stock
purchase plan related
compensation expenses
determined under fair
value based method
    
    
    (73
    )
    
    
    (135
    )
    
    
    (119
    )Deduct: Stock-based
employee compensation
expenses determined under
fair value based method
    
    
    (9,332
    )
    
    
    (11,063
    )
    
    
    (7,712
    )Pro forma
    
    $
    33,710
    
    
    $
    54,798
    
    
    $
    24,146Basic net income per share:As reported
    
    $
    0.82
    
    
    $
    1.33
    
    
    $
    0.66Pro forma
    
    $
    0.64
    
    
    $
    1.09
    
    
    $
    0.50Diluted net income per share:As reported
    
    $
    0.75
    
    
    $
    1.15
    
    
    $
    0.58Pro forma
    
    $
    0.59
    
    
    $
    0.95
    
    
    $
    0.44
  Years ended December 31,2005
    
    2004
    
    2003Risk-free interest rate
    
    
    2.93% - 4.09
    %
    
    
    1.19% - 3.32
    %
    
    
    2.04% - 3.47
    %Expected life (in years)
    
    
    1-4
    
    
    
    1-4
    
    
    
    1-4Expected dividend yield
    
    
    
    
    
    
    
    
    
    
    Volatility
    
    
    61% - 87
    %
    
    
    88% - 91
    %
    
    
    93
    %
 Income taxes
   64




---



##### Table of Contents



Foreign currency
  Net income per share
   Comprehensive income
  Recent accounting pronouncements
   65




---



##### Table of Contents



2. Acquisitions
 Memestar.
   Cash
    
    $
    2,356Accounts receivable
    
    
    2,946Other assets
    
    
    351Intangible assets
    
    
    2,228Goodwill
    
    
    18,091Current liabilities
    
    
    (1,717
    )Purchase price
    
    $
    24,255
  Bravado.
 Cash
    
    $
    64Accounts receivable
    
    
    82Other assets
    
    
    109Intangible assets
    
    
    895Goodwill
    
    
    824Current liabilities
    
    
    (138
    )Purchase price
    
    $
    1,836
   66




---



##### Table of Contents



Crillion
   Cash
    
    $
    1,453Accounts receivable
    
    
    3,845Other assets
    
    
    772Intangible assets
    
    
    4,466Goodwill
    
    
    50,800Current liabilities
    
    
    (1,475
    )$
    59,861
  Davidhill
   67




---



##### Table of Contents



Cash
    
    $
    10Fixed assets
    
    
    187Intangible assets
    
    
    10,780Goodwill
    
    
    13,772Purchase price
    
    $
    24,749
  3. Goodwill and intangible assets, net
  December 31,2005
    
    
    2004(In thousands)Davidhill
    
    $
    13,772
    
    
    $
    4,273Crillion
    
    
    50,800
    
    
    
    37,984Bravado
    
    
    
    
    
    
    824Memestar
    
    
    18,091
    
    
    
    18,091Total
    
    $
    82,663
    
    
    $
    61,172
   December 31, 2005
    
    
    December 31, 2004Accumulated
    
    
    
    
    
    
    
    
    
    
    AccumulatedCost
    
    
    amortization
    
    
    Net
    
    
    Cost
    
    
    amortization
    
    
    Net(In thousands)Content provision contracts
    
    $
    81
    
    
    $
    (81
    )
    
    $
    
    
    
    $
    81
    
    
    $
    (37
    )
    
    $
    44Hotel reservation contracts
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    774
    
    
    
    (304
    )
    
    
    470Customer lists
    
    
    3,466
    
    
    
    (3,466
    )
    
    
    
    
    
    
    3,466
    
    
    
    (2,410
    )
    
    
    1,056Non-Compete agreements
    
    
    3,627
    
    
    
    (2,691
    )
    
    
    936
    
    
    
    3,748
    
    
    
    (1,885
    )
    
    
    1,863Technology
    
    
    10,300
    
    
    
    (1,545
    )
    
    
    8,755
    
    
    
    10,300
    
    
    
    (515
    )
    
    
    9,785$
    17,474
    
    
    $
    (7,783
    )
    
    $
    9,691
    
    
    $
    18,369
    
    
    $
    (5,151
    )
    
    $
    13,218
  
  68




---



##### Table of Contents



Fiscal year
    
    (In thousands)2006
    
    $
    1,8202007
    
    
    1,1762008
    
    
    1,0302009
    
    
    1,0302010
    
    
    1,030Thereafter
    
    
    3,605Total expected amortization expense
    
    $
    9,691
 4. Investment in Tidetime Sun
  5. Equity investments
  Shanghai NC-SINA
    
    
    COAL
    
    
    Others
    
    
    Total(In thousands)Balances at December 31, 2003
    
    $
    1,583
    
    
    $
    
    
    
    $
    502
    
    
    $
    2,085Investments
    
    
    765
    
    
    
    4,100
    
    
    
    1,225
    
    
    
    6,090Sale of investment
    
    
    
    
    
    
    
    
    
    
    (469
    )
    
    
    (469
    )Share of loss on equity investments
    
    
    (964
    )
    
    
    (2,168
    )
    
    
    (33
    )
    
    
    (3,165
    )Balances at December 31, 2004
    
    
    1,384
    
    
    
    1,932
    
    
    
    1,225
    
    
    
    4,541Investments
    
    
    
    
    
    
    1,749
    
    
    
    1,275
    
    
    
    3,024Sale of investment *
    
    
    
    
    
    
    (1,494
    )
    
    
    
    
    
    
    (1,494
    )Share of gain (loss) on equity investments
    
    
    33
    
    
    
    (2,187
    )
    
    
    (656
    )
    
    
    (2,810
    )Balances at December 31, 2005
    
    $
    1,417
    
    
    $
    
    
    
    $
    1,844
    
    
    $
    3,261
 
 *
    
    In December 2005, the Company sold its 33% interest in COAL to Alibaba.com and recorded a gain of $2.6 million. 6. Cash, cash equivalents and short-term investments
  Unrealized
    
    
    Unrealized
    
    
    Estimated fairCarrying value
    
    
    gains
    
    
    losses
    
    
    value(In thousands)Cash and cash equivalents:Cash
    
    $
    78,704
    
    
    $
    
    
    
    $
    
    
    
    $
    78,704Cash equivalents:Bank time deposits
    
    
    36
    
    
    
    
    
    
    
    
    
    
    
    36Commercial paper
    
    
    8,973
    
    
    
    
    
    
    
    
    
    
    
    8,973Investment in money market accounts
    
    
    697
    
    
    
    
    
    
    
    
    
    
    
    6979,706
    
    
    
    
    
    
    
    
    
    
    
    9,70688,410
    
    
    
    
    
    
    
    
    
    
    
    88,410
 69




---



##### Table of Contents



Unrealized
    
    
    Unrealized
    
    
    Estimated fairCarrying value
    
    
    gains
    
    
    losses
    
    
    value(In thousands)Short-term investments:Bank time deposits
    
    
    128,787
    
    
    
    
    
    
    
    
    
    
    
    128,787U.S. Treasury and federal agency bonds
    
    
    19,112
    
    
    
    
    
    
    
    (1,386
    )
    
    
    17,726Corporate bonds and notes
    
    
    62,259
    
    
    
    82
    
    
    
    (787
    )
    
    
    61,554Floating rate notes
    
    
    5,024
    
    
    
    
    
    
    
    (812
    )
    
    
    4,212215,182
    
    
    
    82
    
    
    
    (2,985
    )
    
    
    212,279Total cash, cash equivalents and short-term investments
    
    $
    303,592
    
    
    $
    82
    
    
    $
    (2,985
    )
    
    $
    300,689
  Unrealized
    
    
    Unrealized
    
    
    Estimated fairCarrying value
    
    
    gains
    
    
    losses
    
    
    value(In thousands)Cash and cash equivalents:Cash
    
    $
    101,711
    
    
    $
    
    
    
    $
    
    
    
    $
    101,711Cash equivalents:Bank time deposits
    
    
    6,068
    
    
    
    
    
    
    
    
    
    
    
    6,068Commercial paper
    
    
    18,988
    
    
    
    
    
    
    
    
    
    
    
    18,988Investment in money market accounts
    
    
    27,001
    
    
    
    
    
    
    
    
    
    
    
    27,00152,057
    
    
    
    
    
    
    
    
    
    
    
    52,057153,768
    
    
    
    
    
    
    
    
    
    
    
    153,768Short-term investments:Bank time deposits
    
    
    1,329
    
    
    
    
    
    
    
    
    
    
    
    1,329Securities
    
    
    209
    
    
    
    42
    
    
    
    
    
    
    
    251Supranational Bonds
    
    
    5,046
    
    
    
    
    
    
    
    (31
    )
    
    
    5,015U.S. Treasury and federal agency bonds
    
    
    21,069
    
    
    
    
    
    
    
    (945
    )
    
    
    20,124China government and agency bonds
    
    
    47,382
    
    
    
    
    
    
    
    
    
    
    
    47,382Corporate bonds and notes
    
    
    43,789
    
    
    
    
    
    
    
    (661
    )
    
    
    43,128Floating rate notes
    
    
    4,958
    
    
    
    
    
    
    
    (320
    )
    
    
    4,638123,782
    
    
    
    42
    
    
    
    (1,957
    )
    
    
    121,867Total cash, cash equivalents and short-term investments
    
    $
    277,550
    
    
    $
    42
    
    
    $
    (1,957
    )
    
    $
    275,635
  Less than 12 months
    
    
    12 months or more
    
    
    TotalGross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    Grossunrealized
    
    
    
    
    
    
    unrealized
    
    
    
    
    
    
    unrealizedFair value
    
    
    losses
    
    
    Fair value
    
    
    losses
    
    
    Fair value
    
    
    losses(In thousands)U.S. Treasury and federal agency bonds
    
    $
    
    
    
    $
    
    
    
    $
    17,605
    
    
    $
    (1,386
    )
    
    $
    17,605
    
    
    $
    (1,386
    )Corporate bonds and notes
    
    
    19,833
    
    
    
    (280
    )
    
    
    16,867
    
    
    
    (507
    )
    
    
    36,700
    
    
    
    (787
    )Floating rate notes
    
    
    
    
    
    
    
    
    
    
    4,150
    
    
    
    (812
    )
    
    
    4,150
    
    
    
    (812
    )$
    19,833
    
    
    $
    (280
    )
    
    $
    38,622
    
    
    $
    (2,705
    )
    
    $
    58,455
    
    
    $
    (2,985
    )
   70




---



##### Table of Contents



Estimated fairCarrying value
    
    
    value(In thousands)Short-term investments:Due within one year
    
    $
    173,853
    
    
    $
    173,657Due one to five years
    
    
    25,366
    
    
    
    24,688Due after five years
    
    
    15,963
    
    
    
    13,934$
    215,182
    
    
    $
    212,279
 7. Balance Sheet Components
 December 31,2005
    
    
    2004(In thousands)Accounts receivable, net:Accounts receivable
    
    $
    36,383
    
    
    $
    41,696Allowance for doubtful accounts:Balance at beginning of year
    
    
    (1,754
    )
    
    
    (1,577
    )Charge to expenses
    
    
    (2,271
    )
    
    
    (1,060
    )Write-off, net of recoveries
    
    
    1,582
    
    
    
    883Balance at end of year
    
    
    (2,443
    )
    
    
    (1,754
    )$
    33,940
    
    
    $
    39,942Property and equipment, net:Computers and equipment
    
    $
    41,836
    
    
    $
    30,760Furniture and fixtures
    
    
    2,744
    
    
    
    1,695Automobiles
    
    
    216
    
    
    
    239Leasehold improvements
    
    
    4,724
    
    
    
    2,90449,520
    
    
    
    35,598Less: Accumulated depreciation
    
    
    (27,313
    )
    
    
    (19,446
    )$
    22,207
    
    
    $
    16,152Accrued liabilities:Payroll and related expenses
    
    $
    3,786
    
    
    $
    3,984Customer advances
    
    
    6,601
    
    
    
    9,717Business taxes
    
    
    2,933
    
    
    
    1,905Sales rebates
    
    
    5,623
    
    
    
    7,234Marketing expenses
    
    
    1,687
    
    
    
    2,600Professional fees
    
    
    2,494
    
    
    
    1,534Content fees
    
    
    3,215
    
    
    
    3,675Withholding payroll taxes
    
    
    740
    
    
    
    3,964Payment for Crillion acquisition
    
    
    11,266
    
    
    
    28,087Others
    
    
    4,890
    
    
    
    5,684$
    43,235
    
    
    $
    68,384
 8. Related Party Transactions
 Transactions with joint ventures.
  71




---



##### Table of Contents



9. Income Taxes
   Years ended December 31,2005
    
    
    2004
    
    
    2003(In thousands, except percentage)Loss subject to non China operation
    
    $
    (6,349
    )
    
    $
    (7,798
    )
    
    $
    (11,864
    )Income subject to China operation
    
    
    51,874
    
    
    
    77,022
    
    
    
    44,182Income before taxes
    
    $
    45,525
    
    
    $
    69,224
    
    
    $
    32,318Income tax expenses subject to China operation
    
    $
    2,410
    
    
    $
    3,228
    
    
    $
    895Effective tax rate for China operation
    
    
    5
    %
    
    
    4
    %
    
    
    2
    %
 Cayman Islands
  United States of America
  Years ended December 31,2005
    
    
    2004
    
    
    2003(In thousands)Income (loss) subject to
U.S. operation (including Taiwan
branch)
    
    $
    (446
    )
    
    $
    41
    
    
    $
    (1,515
    )Loss subject to other operations
    
    
    (5,903
    )
    
    
    (7,839
    )
    
    
    (10,349
    )Income subject to China operation
    
    
    51,874
    
    
    
    77,022
    
    
    
    44,182Income before taxes
    
    $
    45,525
    
    
    $
    69,224
    
    
    $
    32,318
   72




---



##### Table of Contents



December 31,2005
    
    
    2004
    
    
    2003(In thousands)Deferred tax assets:Net operating loss carryforwards
    
    $
    27,848
    
    
    $
    20,817
    
    
    $
    18,251Allowances for doubtful accounts, accruals and other liabilities
    
    
    117
    
    
    
    131
    
    
    
    139Other tax credits
    
    
    346
    
    
    
    549
    
    
    
    564Total deferred tax assets
    
    
    28,311
    
    
    
    21,497
    
    
    
    18,954Less: valuation allowance
    
    
    (28,311
    )
    
    
    (21,497
    )
    
    
    (18,954
    )Deferred tax assets
    
    $
    
    
    
    $
    
    
    
    $
    
 Hong Kong
   December 31,2005
    
    
    2004
    
    
    2003(In thousands)Deferred tax assets:Net operating loss carryforwards
    
    $
    2,013
    
    
    $
    1,798
    
    
    $
    1,778Allowances for doubtful accounts, accruals and other liabilities
    
    
    
    
    
    
    
    
    
    
    16Total deferred tax assets
    
    
    2,013
    
    
    
    1,798
    
    
    
    1,794Less: valuation allowance
    
    
    (2,013
    )
    
    
    (1,798
    )
    
    
    (1,794
    )Deferred tax assets
    
    $
    
    
    
    $
    
    
    
    $
    
 China
  Composition of income tax expenses for China operation
  Years ended December 31,2005
    
    
    2004
    
    
    2003(In thousands)Current income taxes expenses
    
    $
    (2,671
    )
    
    $
    (3,441
    )
    
    $
    (1,802
    )Change in deferred tax assets
    
    
    2,492
    
    
    
    (1,113
    )
    
    
    1,545Change in valuation allowance
    
    
    (2,231
    )
    
    
    1,326
    
    
    
    (638
    )Income tax expenses
    
    $
    (2,410
    )
    
    $
    (3,228
    )
    
    $
    (895
    )
 73




---



##### Table of Contents



Reconciliation of the differences between statutory tax rate and the effective tax rate for China
operation
  Years ended December 31,2005
    
    
    2004
    
    
    2003Statutory EIT rate
    
    
    33
    %
    
    
    33
    %
    
    
    33
    %Tax differential from statutory rate applicable to the subsidiaries and VIEs
    
    
    (2
    %)
    
    
    (1
    %)
    
    
    (1
    %)Effect on tax holiday
    
    
    (31
    %)
    
    
    (32
    %)
    
    
    (30
    %)Permanent differences
    
    
    1
    %
    
    
    2
    %
    
    
    2
    %Change in valuation allowance
    
    
    4
    %
    
    
    2
    %
    
    
    (2
    %)Others
    
    
    
    
    
    
    
    
    
    
    Effective tax rate for China operations
    
    
    5
    %
    
    
    4
    %
    
    
    2
    %
  December 31,2005
    
    
    2004
    
    
    2003(In thousands)Deferred tax assets:Net operating loss carryforwards *
    
    $
    964
    
    
    $
    
    
    
    $
    566Allowances for doubtful accounts, accruals and other liabilities
    
    
    1,358
    
    
    
    260
    
    
    
    1,048Depreciation
    
    
    1,289
    
    
    
    859
    
    
    
    619Total deferred tax assets
    
    
    3,611
    
    
    
    1,119
    
    
    
    2,233Less: valuation allowance
    
    
    (2,231
    )
    
    
    
    
    
    
    (1,326
    )Deferred tax assets
    
    $
    1,380
    
    
    $
    1,119
    
    
    $
    907
 
 *
    
    The net operating loss carryforwards will expire, if unused, in the years ending December 31,
2008 through 2010. Aggregate net deferred tax assets
  December 31,2005
    
    
    2004
    
    
    2003(In thousands)Short-term deferred tax assets:Net operating loss carryforwards
    
    $
    
    
    
    $
    
    
    
    $
    566Allowances for doubtful accounts, accruals and other liabilities
    
    
    549
    
    
    
    391
    
    
    
    1,203Depreciation
    
    
    597
    
    
    
    429
    
    
    
    619Total deferred tax assets
    
    
    1,146
    
    
    
    820
    
    
    
    2,388Less: valuation allowance
    
    
    (289
    )
    
    
    (131
    )
    
    
    (1,481
    )Short-term deferred tax assets
    
    $
    857
    
    
    $
    689
    
    
    $
    907Long-term deferred tax assets included in other assets:Net operating loss carryforwards
    
    $
    30,825
    
    
    $
    22,615
    
    
    $
    20,029Allowances for doubtful accounts, accruals and other liabilities
    
    
    926
    
    
    
    
    
    
    
    Depreciation
    
    
    692
    
    
    
    430
    
    
    
    Other tax credits
    
    
    346
    
    
    
    549
    
    
    
    564Total deferred tax assets
    
    
    32,789
    
    
    
    23,594
    
    
    
    20,593Less: valuation allowance
    
    
    (32,266
    )
    
    
    (23,164
    )
    
    
    (20,593
    )Long-term deferred tax assets
    
    $
    523
    
    
    $
    430
    
    
    $
    Net deferred tax assets
    
    $
    1,380
    
    
    $
    1,119
    
    
    $
    907
 74




---



##### Table of Contents



Movement of valuation allowances for deferred tax assets
  Years Ended December 31,2005
    
    
    2004
    
    
    2003(In thousands)Balance at beginning of the year
    
    $
    23,295
    
    
    $
    22,074
    
    
    $
    19,868Provision for the year
    
    
    9,260
    
    
    
    2,547
    
    
    
    3,348Recoveries of deferred tax assets
    
    
    
    
    
    
    (1,326
    )
    
    
    (1,142
    )Balance at end of the year
    
    $
    32,555
    
    
    $
    23,295
    
    
    $
    22,074
 10. Net Income Per Share
   Years ended December 31,2005
    
    
    2004
    
    
    2003(In thousands, except per share amounts)Basic net income per share calculation:Numerator:Net income used in computing basic net income per share
    
    $
    43,115
    
    
    $
    65,996
    
    
    $
    31,423Denominator:Weighted average ordinary shares outstanding
    
    
    52,455
    
    
    
    50,274
    
    
    
    47,518Ordinary shares to be issued for business acquisition
    
    
    30
    
    
    
    
    
    
    
    322Shares used in computing basic net income per share
    
    
    52,485
    
    
    
    50,274
    
    
    
    47,840Basic net income per share
    
    $
    0.82
    
    
    $
    1.33
    
    
    $
    0.66Diluted net income per share calculation:Numerator:Net income
    
    $
    43,115
    
    
    $
    65,996
    
    
    $
    31,423Amortization of convertible debt issuance cost
    
    
    685
    
    
    
    685
    
    
    
    341Net income used in computing diluted net income per share
    
    $
    43,800
    
    
    $
    66,681
    
    
    $
    31,764Denominator:Weighted average ordinary shares outstanding
    
    
    52,455
    
    
    
    50,274
    
    
    
    47,518Weighted average ordinary shares equivalents:Stock options
    
    
    2,335
    
    
    
    4,053
    
    
    
    4,994Convertible debt
    
    
    3,877
    
    
    
    3,877
    
    
    
    1,939Others
    
    
    125
    
    
    
    
    
    
    
    343Shares used in computing diluted net income per share
    
    
    58,792
    
    
    
    58,204
    
    
    
    54,794Diluted net income per share
    
    $
    0.75
    
    
    $
    1.15
    
    
    $
    0.58
 11. Employee Benefit Plans
 401(k) Savings Plan
  75




---



##### Table of Contents



China Contribution Plan
  12. Profit Appropriation
   13. Shareholders Equity
 Stockholder Rights Plan
   1999 Stock Plan
  76




---



##### Table of Contents



1999 Executive Stock Option Plan
  1999 Directors Stock Option Plan
  77




---



##### Table of Contents



Activities of All Stock Option Plans
  Years ended December 31,2005
    
    2004
    
    2003Weighted
    
    
    
    
    
    Weighted
    
    
    
    
    
    WeightedAverage
    
    
    
    
    
    Average
    
    
    
    
    
    AverageOptions
    
    Exercise
    
    Options
    
    Exercise
    
    Options
    
    ExerciseOutstanding
    
    Price
    
    Outstanding
    
    Price
    
    Outstanding
    
    Price(In thousands, except per share data)Outstanding at beginning of period
    
    
    5,418
    
    
    $
    11.62
    
    
    
    6,270
    
    
    $
    7.00
    
    
    
    6,583
    
    
    $
    3.38Granted
    
    
    146
    
    
    
    26.38
    
    
    
    1,644
    
    
    
    22.85
    
    
    
    2,077
    
    
    
    14.42Exercised
    
    
    (1,569
    )
    
    
    4.30
    
    
    
    (2,242
    )
    
    
    6.90
    
    
    
    (1,668
    )
    
    
    3.52Canceled
    
    
    (385
    )
    
    
    15.59
    
    
    
    (254
    )
    
    
    11.98
    
    
    
    (722
    )
    
    
    3.30Outstanding at period end
    
    
    3,610
    
    
    $
    14.97
    
    
    
    5,418
    
    
    
    11.62
    
    
    
    6,270
    
    
    
    7.00Weighted average fair value of options
granted during the year
    
    
    
    
    
    $
    10.25
    
    
    
    
    
    
    $
    12.88
    
    
    
    
    
    
    $
    8.56
  Options Outstanding at December 31, 2005
    
    
    
    
    
    Options Exercisable at December 31, 2005Weighted Average
    
    Weighted
    
    
    
    
    
    WeightedRemaining
    
    Average
    
    
    
    
    
    AverageRange of
    
    Number
    
    Contractual
    
    Exercise
    
    Number
    
    ExerciseExercise Prices
    
    Outstanding
    
    Life(years)
    
    Price
    
    Exercisable
    
    Price(In thousands, except per share data)
    
    
    
    
    
    (In thousands, except per share data)$0.16 - $1.88
    
    
    685
    
    
    
    5.33
    
    
    $
    1.46
    
    
    
    541
    
    
    $
    1.35$1.94 - $12.98
    
    
    1,086
    
    
    
    6.28
    
    
    
    10.44
    
    
    
    701
    
    
    
    9.33$15.00 - $20.86
    
    
    1,161
    
    
    
    8.16
    
    
    
    19.84
    
    
    
    422
    
    
    
    19.20$24.23 - $36.40
    
    
    678
    
    
    
    8.56
    
    
    
    27.53
    
    
    
    446
    
    
    
    29.163,610
    
    
    
    
    
    
    
    
    
    
    
    2,110
 Stock-based compensation.
 Employee Stock Purchase Plan
  78




---



##### Table of Contents



14. Segment Information
   Years ended December 31,2005
    
    
    2004
    
    
    2003(In thousands, except percentages)Revenues:Advertising
    
    $
    84,999
    
    
    $
    65,417
    
    
    $
    41,173MVAS
    
    
    98,070
    
    
    
    123,954
    
    
    
    64,377Others
    
    
    10,483
    
    
    
    10,616
    
    
    
    8,735$
    193,552
    
    
    $
    199,987
    
    
    $
    114,285Cost of Revenues:Advertising
    
    $
    27,627
    
    
    $
    22,187
    
    
    $
    14,001MVAS
    
    
    33,814
    
    
    
    38,277
    
    
    
    19,455Others
    
    
    1,666
    
    
    
    1,147
    
    
    
    950$
    63,107
    
    
    $
    61,611
    
    
    $
    34,406Gross profit margins:Advertising
    
    
    67
    %
    
    
    66
    %
    
    
    66
    %MVAS
    
    
    66
    %
    
    
    69
    %
    
    
    70
    %Others
    
    
    84
    %
    
    
    89
    %
    
    
    89
    %Overall
    
    
    67
    %
    
    
    69
    %
    
    
    70
    %
  China
    
    
    U.S.
    
    
    Hong Kong
    
    
    Taiwan
    
    
    Total(In thousands)Year
ended and as of December 31, 2005:Revenues
    
    $
    189,207
    
    
    $
    2,060
    
    
    $
    1,775
    
    
    $
    510
    
    
    $
    193,552Long-lived assets
    
    
    21,746
    
    
    
    143
    
    
    
    175
    
    
    
    143
    
    
    
    22,207Year
ended and as of December 31, 2004:Revenues
    
    $
    194,921
    
    
    $
    2,281
    
    
    $
    1,807
    
    
    $
    978
    
    
    $
    199,987Long-lived assets
    
    
    15,468
    
    
    
    59
    
    
    
    179
    
    
    
    446
    
    
    
    16,152Year
ended and as of December 31, 2003:Revenues
    
    $
    108,507
    
    
    $
    2,398
    
    
    $
    1,854
    
    
    $
    1,526
    
    
    $
    114,285Long-lived assets
    
    
    7,592
    
    
    
    66
    
    
    
    132
    
    
    
    856
    
    
    
    8,646
  15. Certain risks and concentrations
   79




---



##### Table of Contents



16. Convertible debt
  80




---



##### Table of Contents



17. Commitments and Contingencies
  Less than one
    
    
    One to
    
    
    Three to
    
    
    More thanTotal
    
    
    year
    
    
    three years
    
    
    five years
    
    
    five years( In thousands)Operating lease commitments
    
    
    3,476
    
    
    
    1,423
    
    
    
    2,053
    
    
    
    
    
    
    
    
  Less than one
    
    
    One to
    
    
    Three to
    
    
    More thanTotal
    
    
    year
    
    
    three years
    
    
    five years
    
    
    five years( In thousands)Purchase commitments
    
    
    13,287
    
    
    
    9,108
    
    
    
    4,051
    
    
    
    46
    
    
    
    82
  Legal Proceedings
 
 Supplementary
Financial Data (unaudited)
 
 Quarterly financial result
  81




---



##### Table of Contents



Quarterly results for the year ended December 31, 2005Dec. 31,
    
    
    Sept. 30,
    
    
    June 30,
    
    
    March 31,2005
    
    
    2005
    
    
    2005
    
    
    2005(In thousands, except per share amounts)Net revenues
    
    $
    51,950
    
    
    $
    49,624
    
    
    $
    46,130
    
    
    $
    45,848Gross profit
    
    
    34,192
    
    
    
    33,544
    
    
    
    31,795
    
    
    
    30,914Net income
    
    $
    13,759
    
    
    $
    9,093
    
    
    $
    9,953
    
    
    $
    10,310Basic net income per share
    
    $
    0.26
    
    
    $
    0.17
    
    
    $
    0.19
    
    
    $
    0.20Shares used in computing basic net income per share
    
    
    53,208
    
    
    
    53,099
    
    
    
    52,111
    
    
    
    51,431Diluted net income per share
    
    $
    0.24
    
    
    $
    0.16
    
    
    $
    0.17
    
    
    $
    0.18Shares used in computing diluted net income per share
    
    
    58,814
    
    
    
    58,774
    
    
    
    58,783
    
    
    
    58,502
 Quarterly results for the year ended December 31, 2005Dec. 31,
    
    
    Sept. 30,
    
    
    June 30,
    
    
    March 31,2004
    
    
    2004
    
    
    2004
    
    
    2004(In thousands, except per share amounts)Net revenues
    
    $
    56,899
    
    
    $
    52,505
    
    
    $
    49,195
    
    
    $
    41,388Gross profit
    
    
    38,966
    
    
    
    35,650
    
    
    
    34,898
    
    
    
    28,862Net income
    
    $
    17,433
    
    
    $
    14,503
    
    
    $
    18,018
    
    
    $
    16,042Basic net income per share
    
    $
    0.35
    
    
    $
    0.29
    
    
    $
    0.36
    
    
    $
    0.33Shares used in computing basic net income per share
    
    
    50,967
    
    
    
    50,387
    
    
    
    50,257
    
    
    
    49,329Diluted net income per share
    
    $
    0.30
    
    
    $
    0.25
    
    
    $
    0.31
    
    
    $
    0.28Shares used in computing diluted net income per share
    
    
    58,729
    
    
    
    57,763
    
    
    
    58,110
    
    
    
    57,826
 
 Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
  
 Item 9A: Controls and Procedures
 Disclosure Controls and Procedures
  Managements Report on Internal Control over Financial Reporting
  Changes in Internal Control over Financial Reporting
  
 Item 9B: Other information
  82




---



##### Table of Contents



PART III
 
 Item 10. Directors and Executive Officers of the Registrant
  
 Item 11. Executive Compensation
  
 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
  
 Item 13. Certain Relationships and Related Transactions
  
 Item 14. Principal Accountant Fees and Services
  
 PART IV
 
 Item 15. Exhibits and Financial Statement Schedules
     
 SIGNATURES
  SINA CorporationBy:
    /s/ Charles ChaoCharles ChaoPresident and Chief Financial Officer  83




---



##### Table of Contents



POWER OF ATTORNEY
   Signature
    
    Title
    
    Date/s/ YAN WANG

Yan Wang
    
    Chief Executive Officer and Director
(Principal Executive Officer)
    
    March 15, 2006/s/ CHARLES CHAO

Charles Chao
    
    President and Chief Financial Officer
(Principal Financial and Accounting Officer)
    
    March 15, 2006/s/ YONGJI DUAN

Yongji Duan
    
    Chairman of the Board
    
    March 15, 2006/s/ PEHONG CHEN

Pehong Chen
    
    Director
    
    March 15, 2006/s/ XIAOTAO CHEN

Xiaotao Chen
    
    Director
    
    March 15, 2006/s/ HURST LIN

Hurst Lin
    
    Director
    
    March 15, 2006/s/ LIP-BU TAN

Lip-Bu Tan
    
    Director
    
    March 15, 2006/s/ TER-FUNG TSAO

Ter-Fung Tsao
    
    Director
    
    March 15, 2006/s/ YICHEN ZHANG

Yichen Zhang
    
    Director
    
    March 15, 2006/s/ SONGYI ZHANG

SongYi Zhang
    
    Director
    
    March 15, 2006
 84




---



##### Table of Contents



EXHIBIT INDEX
 ExhibitNumber
    
    Description2.1
    
    Stock Purchase Agreement dated February 24, 2004, among SINA, Crillion, the
shareholders of Crillion listed on Part I of Exhibit A of the Stock
Purchase Agreement and the individuals listed on Part II of Exhibit A of
the Stock Purchase Agreement (Filed as Exhibit 2.1 to the Companys Report
on Form 8-K filed on April 7, 2004, and incorporated herein by reference).2.2
    
    Amendment Agreement dated March 23, 2004, among SINA, Crillion, the
shareholders of Crillion listed on Part I of Exhibit A of the Stock
Purchase Agreement and the individuals listed on Part II of Exhibit A of
the Stock Purchase Agreement (Filed as Exhibit 2.2 to the Companys Report
on Form 8-K filed on April 7, 2004, and incorporated herein by reference).2.3
    
    Equity Transfer Agreement dated February 24, 2004, among the individuals
listed on Schedule A attached to the Equity Transfer Agreement, Shenzhen
Wang Xing Technology Co., Ltd., a limited liability company organized and
existing under the laws of the Peoples Republic of China, and the
individuals listed on Schedule B attached to the Equity Transfer Agreement
(Filed as Exhibit 2.3 to the Companys Report on Form 8-K filed on April 7,
2004, and incorporated herein by reference).2.4
    
    Stock Purchase Agreement dated July 1, 2004 among SINA Corporation,
Davidhill Capital Inc., the shareholders of Davidhill Capital Inc. listed
on Part I of Exhibit A to such agreement, and the company and individuals
listed on Part II of Exhibit A to such agreement. (Filed as Exhibit 2.1 to
the Companys Report on Form 8-K filed on October 22, 2004, and
incorporated herein by reference).2.5
    
    Amendment Agreement dated October 13, 2004 among SINA Corporation,
Davidhill Capital Inc., the shareholders of Davidhill Capital Inc. listed
on Part I of Exhibit A to the Stock Purchase Agreement, and the company and
individuals listed on Part II of Exhibit A to the Stock Purchase Agreement.
(Filed as Exhibit 2.2 to the Companys Report on Form 8-K filed on October
22, 2004, and incorporated herein by reference).2.6
    
    Asset Purchase Agreement dated July 1, 2004 by and between Guiyang
Longmaster Information Technology Co., Ltd. and Beijing Davidhill Internet
Technology Service Co., Ltd. (Filed as Exhibit 2.3 to the Companys Report
on Form 8-K filed on October 22, 2004, and incorporated herein by
reference).3.1
    
    Amended and Restated Articles of Association of SINA Corporation (Filed as
Exhibit 3.1 to the Companys Annual Report on Form 10-K filed on March 16,
2005 and incorporated by reference herein).3.2
    
    Amended and Restated Memorandum of Association of SINA.com (Filed as
Exhibit 3.1 to the Companys Annual Report on Form 10-K filed on March 16,
2005 and incorporated by reference herein).4.1
    
    Form of Subordinated Note due July 15, 2023 (Filed as Exhibit 4.1 to the
Companys Report on Form 10-Q for the three month period ended June 30,
2003, and incorporated herein by reference).4.2
    
    Indenture, dated as of July 7, 2003, by and between the Company and the
Bank of New York (Filed as Exhibit 4.2 to the Companys Report on Form 10-Q
for the three month period ended June 30, 2003, and incorporated herein by
reference).4.3
    
    Registration Rights Agreement, dated as of July 7, 2003, by and between the
Company and Credit Suisse First Boston LLC (Filed as Exhibit 4.3 to the
Companys Report on Form 10-Q for the three month period ended June 30,
2003, and incorporated herein by reference).4.4
    
    Rights Agreement dated as of February 22, 2005 between SINA Corporation and
American Stock Transfer & Trust Company, as Rights Agent (Filed as Exhibit
4.1 to the Companys Report on Form 8-K filed on February 24, 2005, and
incorporated herein by reference).10.1#
    
    Form of Indemnification Agreement between SINA.com and each of its officers
and directors (Filed as Exhibit 10.1 to the Companys Registration
Statement on Form F-1, Registration No. 333-11718, filed on March 27, 2000,
as amended, and incorporated herein by reference).




---



##### Table of Contents



ExhibitNumber
    
    Description10.2#
    
    SRS International Ltd. 1997 Stock Option Plan and form of incentive stock
option agreement (Filed as Exhibit 10.2 to the Companys Registration
Statement on Form F-1, Registration No. 333-11718, filed on March 27, 2000,
as amended, and incorporated herein by reference).10.3#
    
    Sinanet.com 1997 Stock Plan and form of stock option agreement (Filed as
Exhibit 10.3 to the Companys Registration Statement on Form F-1,
Registration No. 333-11718, filed on March 27, 2000, as amended, and
incorporated herein by reference).10.4#
    
    Amended SINA.com 1999 Stock Plan and form of share option agreement (Filed
as Exhibit 10.4 to the Companys Registration Statement on Form F-1,
Registration No. 333-11718, filed on March 27, 2000, as amended, and
incorporated herein by reference).10.5#
    
    Form of share option agreement under the amended SINA.com 1999 Stock Plan
(Filed as Exhibit 10.5 to the Companys Annual Report on Form 10-K filed on
March 16, 2005 and incorporated by reference herein).10.6#
    
    1999 Employee Stock Purchase Plan (Filed as Exhibit 10.5 to the Companys
Registration Statement on Form F-1, Registration No. 333-11718, filed on
March 27, 2000, as amended, and incorporated herein by reference).10.7#
    
    Form of subscription agreement under the 1999 Employee Stock Purchase Plan
(Filed as Exhibit 10.5 to the Companys Registration Statement on Form F-1,
Registration No. 333-11718, filed on March 27, 2000, as amended, and
incorporated herein by reference).10.8#
    
    1999 Directors Stock Option Plan (Filed as Exhibit 10.6 to the Companys
Registration Statement on Form F-1, Registration No. 333-11718, filed on
March 27, 2000, as amended, and incorporated herein by reference).10.9#
    
    Form of nonstatutory stock option agreement under the 1999 Directors Stock
Option Plan (Filed as Exhibit 10.6 to the Companys Registration Statement
on Form F-1, Registration No. 333-11718, filed on March 27, 2000, as
amended, and incorporated herein by reference).10.10#
    
    SINA.com 1999 Executive Stock Plan (Filed as Exhibit 10.19 to the Companys
Registration Statement on Form F-1, Registration No. 333-11718, filed on
March 27, 2000, as amended, and incorporated herein by reference).10.11
    
    Lease Contract dated September 2003 between Guangzhou Urban Construction &
Development Co., Ltd and Guangzhou Media Message Technologies, Inc. for
offices located at Floor 10, No. 123, Tiyu West Street, Tianhe District,
Guangzhou (Filed as Exhibit 10.7 to the Companys Report on Form 10-K for
the year ended December 31, 2003, as amended, and incorporated herein by
reference).10.12
    
    Supplements to Lease Contract dated
September 2003 between Guangzhou Urban Construction &
Development Co., Ltd and Guangzhou Media Message Technologies, Inc. for offices located at Floor 10, No. 123, Tiyu West
Street, Tianhe District, Guangzhou (Filed as Exhibit 10.8 to the Companys
Report on Form 10-K for the year ended December 31, 2003, as amended, and
incorporated herein by reference).10.13
    
    Lease Contract dated September 29, 2003 between Beijing Wanyujiaye Real
Estate Agency Co., Ltd and Beijing Sina Information Technology Co., Ltd for
offices located at Floor 16, Building C, Area A, SOHO, No. 88, Jianguo
Street, Chaoyang District, Beijing (Filed as Exhibit 10.9 to the Companys
Report on Form 10-K for the year ended December 31, 2003, as amended, and
incorporated herein by reference).10.14
    
    First Amendment to Sublease dated November 24, 2003 between E.PIPHANY, Inc.
and SINA.com Online for offices located at 2988 Campus Drive, Suite 100,
San Mateo, California (Filed as Exhibit 10.11 to the Companys Report on
Form 10-K for the year ended December 31, 2003, as amended, and
incorporated herein by reference).10.15
    
    Sublease dated January 11, 2002 between E.PIPHANY, Inc. and SINA.com Online
for offices located at 2988 Campus Drive, Suite 100, San Mateo, California
(Filed as Exhibit 10.56 to the Companys Report on Form 10-Q for the three
month period ended March 31, 2002, and incorporated herein by reference).




---



##### Table of Contents



ExhibitNumber
    
    Description10.16
    
    Office Lease dated July 18, 2002 between Shanghai Four Seasons Tong Ren
Real Estate Developing Co., Ltd and Beijing Stone Rich Sight Information
Technology Co., Ltd for office located at Suite 1802-5 United Plaza, 1468
Nanjing West Street, Jingan District, Shanghai, China (Filed as Exhibit
10.61 to the Companys Report on Form 10-K for year ended June 30, 2002,
and incorporated herein by reference).10.17
    
    Lease Agreement and supplemental agreements of Modern City dated June 6,
2003 and July 23, 2003 among Li Yanping, Wei Yingkui and Beijing Sina
Information Technology Co., Ltd. for offices located at 18th Floor, Block
C, SOHO Modern City, 88 Jianguo Road, Chaoyang District, Beijing, China
(Filed as Exhibit 10.2 to the Companys Report on Form 10-Q for the three
month period ended June 30, 2003, and incorporated herein by reference).10.18
    
    Lease Agreement of Ideal International Plaza dated April 16, 2004 between
SINA Information Technology Company Limited and Beijing Zhongwu Ideal Real
Estate Development Co., Ltd. for the office located in Suite 01  12, Floor
20, Ideal International Plaza, 2 Zhongguancun High-Tech Square, Beijing,
PRC (Filed as Exhibit 10.1 to the Companys Report on Form 10-Q for the
three month period ended June 30, 2004, and incorporated herein by
reference).10.19
    
    Form Lease Agreement of Ideal International Plaza between the Registrants
subsidiaries or VIEs and Beijing Zhongwu Ideal Real Estate Development Co.,
Ltd. for the office located in Ideal International Plaza, 2 Zhongguancun
High-Tech Square, Beijing, PRC, and the list of the lease agreements (Filed
as Exhibit 10.1 to the Companys Report on Form 10-Q for the three month
period ended September 30, 2004, and incorporated herein by reference).10.20
    
    Office Lease dated November 20, 2004 between Huang Xu, Xiu-Xiang and
SINA.Com Online for offices located at 5F, No. 362, Dun-Hua S.Rd., Sec. 1,
Ta An District, Taipei City Taiwan (Filed as Exhibit 10.49 to the Companys
Annual Report on Form 10-K filed on March 16, 2005 and incorporated by
reference herein).10.21
    
    Office Lease dated November 11, 2004 between Man Hing Hong Land Investment
Company Limited and Sina.com (Hong Kong) Limited for the office located at
Room 1003-4, 10/F, Manyee Building, 68 Des Voeux Road Central, Hong Kong
(Filed as Exhibit 10.50 to the Companys Annual Report on Form 10-K filed
on March 16, 2005 and incorporated by reference herein).10.22
    
    Business Cooperation Agreement dated March 7, 2000 between Beijing SINA
Internet Information Services Co., Ltd. and BSRS (Filed as Exhibit 10.23 to
the Companys Registration Statement on Form F-1, Registration No.
333-11718, filed on March 27, 2000, as amended, and incorporated herein by
reference).10.23
    
    Equipment and Leased Line Transfer Agreement dated March 7, 2000 between
Beijing SINA Internet Information Services Co., Ltd. and BSRS (Filed as
Exhibit 10.23 to the Companys Registration Statement on Form F-1,
Registration No. 333-11718, filed on March 27, 2000, as amended, and
incorporated herein by reference).10.24
    
    Advertising Agency Agreement dated March 7, 2000 between Beijing SINA
Internet Information Services Co., Ltd. and SINA.com (Filed as Exhibit
10.26 to the Companys Registration Statement on Form F-1, Registration No.
333-11718, filed on March 27, 2000, as amended, and incorporated herein by
reference).10.25
    
    Advertisement Production and Technical Service Agreement dated March 7,
2000 between Beijing Stone Rich Sight Information Technology Co., Ltd. and
Beijing SINA Interactive Advertising Co. Ltd (Filed as Exhibit 10.27 to the
Companys Registration Statement on Form F-1, Registration No. 333-11718,
filed on March 27, 2000, as amended, and incorporated herein by reference).10.26
    
    Advertising Publication and Cooperation Agreement dated March 7, 2000
between Beijing SINA Internet Information Services Co., Ltd. and Beijing
SINA Interactive Advertising Co., Ltd (Filed as Exhibit 10.28 to the
Companys Registration Statement on Form F-1, Registration No. 333-11718,
filed on March 27, 2000, as amended, and incorporated herein by reference).




---



##### Table of Contents



ExhibitNumber
    
    Description10.27
    
    Amendment to Advertising Agency Agreement dated April 1, 2000 between
Beijing SINA Interactive Advertising Co., Ltd. and SINA.com (Filed as
Exhibit 10.37 to the Companys Registration Statement on Form F-1,
Registration No. 333-11718, filed on March 27, 2000, as amended, and
incorporated herein by reference).10.28
    
    Amendment to Advertisement Publication and Cooperation Agreement dated
April 1, 2000 between Beijing SINA Interactive Advertising Co., Ltd. and
Beijing SINA Internet Information Services Co., Ltd (Filed as Exhibit 10.38
to the Companys Registration Statement on Form F-1, Registration No.
333-11718, filed on March 27, 2000, as amended, and incorporated herein by
reference).10.29
    
    Amendment to Advertising Production and Technical Service Agreement dated
April 1, 2000 between Beijing Stone Rich Sight Information Technology Co.,
Ltd. and Beijing SINA Interactive Advertising Co., Ltd (Filed as Exhibit
10.39 to the Companys Registration Statement on Form F-1, Registration No.
333-11718, filed on March 27, 2000, as amended, and incorporated herein by
reference).10.30
    
    E-Commerce Cooperation Agreement dated April 1, 2000 between Beijing Stone
Rich Sight Information Technology Co., Ltd. and Beijing SINA Internet
Information Services Co., Ltd (Filed as Exhibit 10.40 to the Companys
Registration Statement on Form F-1, Registration No. 333-11718, filed on
March 27, 2000, as amended, and incorporated herein by reference).10.31#
    
    Change of Control Agreement dated November 27, 2000 with Hurst Lin (Filed
as Exhibit 10.46 to the Companys Report on Form 10-Q for the three month
period ended December 31, 2000, and incorporated herein by reference).10.32#
    
    Change of Control Agreement dated November 27, 2000 with Yan Wang (Filed as
Exhibit 10.47 to the Companys Report on Form 10-Q for the three month
period ended December 31, 2000, and incorporated herein by reference).10.33#
    
    Change of Control Agreement dated February 1, 2001 with Charles Chao (Filed
as Exhibit 10.48 to the Companys Report on Form 10-Q for the three month
period ended March 31, 2001, and incorporated herein by reference).10.34#
    
    Employment Agreement dated June 1, 2002 between Charles Chao and SINA.com
(Filed as Exhibit 10.60 to the Companys Report on Form 10-K for the year
ended June 30, 2002, and incorporated herein by reference).10.35
    
    Agreement and Mutual Release, dated as of May 11, 2003, by and between the
Company and Daniel Mao (Filed as Exhibit 10.1 to the Companys Report on
Form 10-Q for the three month period ended June 30, 2003, and incorporated
herein by reference).10.36
    
    Agreement on Short Message Service Cooperation dated November 12, 2002
between Guangzhou Media Message Technologies Inc. and Guangdong Mobile
Communications Corporation (Filed as Exhibit 10.37 to the Companys Report
on Form 10-K for the year ended December 31, 2003, as amended, and
incorporated herein by reference).10.37
    
    Monternet Short Message Cooperation Agreement dated April 28, 2003 between
Beijing SINA Internet Information Services Co., Ltd. and Beijing Mobile
Communications Corporation (Filed as Exhibit 10.38 to the Companys Report
on Form 10-K for the year ended December 31, 2003, as amended, and
incorporated herein by reference).10.38
    
    Form of Loan Agreement between Beijing Sina Information Technology Co., Ltd
(a subsidiary of the Company) and the Companys employees for funding the
Variable Interest Entities controlled by the Company (Filed as Exhibit
10.39 to the Companys Report on Form 10-K for the year ended December 31,
2003, as amended, and incorporated herein by reference).10.39
    
    Form of Agreement on Authorization to Exercise Shareholders Voting Power
between Beijing Sina Information Technology Co., Ltd (a subsidiary of the
Company) and the Companys employees in relation to Variable Interest
Entities controlled by the Company (Filed as Exhibit 10.40 to the Companys
Report on Form 10-K for the year ended December 31, 2003, as amended, and
incorporated herein by reference).




---



##### Table of Contents



ExhibitNumber
    
    Description10.40
    
    Technical Services Agreement dated September 1, 2003 between Beijing New
Media Information Technology Co., Ltd. and Guangzhou Media Message
Technologies Inc (Filed as Exhibit 10.41 to the Companys Report on Form
10-K for the year ended December 31, 2003, as amended, and incorporated
herein by reference).10.41
    
    Technical Cooperation Agreement dated September 28, 2003 between Beijing
New Media Information Technology Co., Ltd. and Guangzhou Media Message
Technologies Inc (Filed as Exhibit 10.42 to the Companys Report on Form
10-K for the year ended December 31, 2003, as amended, and incorporated
herein by reference).10.42
    
    Technical Services Agreement dated September 1, 2003 between Beijing New
Media Information Technology Co., Ltd. and Guangdong SINA Internet
Information Services Co., Ltd (Filed as Exhibit 10.43 to the Companys
Report on Form 10-K for the year ended December 31, 2003, as amended, and
incorporated herein by reference).10.43
    
    Technical Services Agreement dated January 10, 2003 between
Star-Village.com (Beijing) Internet Technology Limited and Guangzhou Media
Message Technologies Inc (Filed as Exhibit 10.44 to the Companys Report on
Form 10-K for the year ended December 31, 2003, as amended, and
incorporated herein by reference).10.44
    
    Technical Services Agreement dated January 1, 2003 between Beijing SINA
Internet Technology Services Co., Ltd. and Beijing SINA Internet
Information Services Co., Ltd (Filed as Exhibit 10.45 to the Companys
Report on Form 10-K for the year ended December 31, 2003, as amended, and
incorporated herein by reference).10.45
    
    Technical Services Agreement dated February 24, 2004 between Beijing New
Media Information Technology Co., Ltd. and Shenzhen Wang Xing Technology
Co., Ltd (Filed as Exhibit 10.1 to the Companys Report on Form 10-Q for
the three month period ended March 31, 2004, and incorporated herein by
reference).10.46
    
    Translation of Monternet Short Message Cooperation Agreement dated March
23, 2004 between Beijing SINA Internet Information Services Co., Ltd. and
Guangdong Mobile Communications Corporation (Filed as Exhibit 10.48 to the
Companys Annual Report on Form 10-K filed on March 16, 2005 and
incorporated by reference herein).10.47*
    
    Office Lease Agreement dated August 12, 2005 between EOP-PENINSULA OFFICE
PARK, L.L.C. and SINA.com Online for offices located at 2988 Campus Drive,
Suite 100, San Mateo, California.10.48*
    
    Translation of Technical Services
Agreement dated January 1, 2005 between SINA.com Technology
(China) Co., Ltd. and Beijing SINA Infinity Advertising Co., Ltd.10.49*
    
    Translation of Technical Services
Agreement dated January 1, 2005 between SINA.com Technology
(China) Co., Ltd. and Beijing SINA Internet Information Services Co., Ltd.21.1*
    
    List of Subsidiaries.23.1*
    
    Consent of Independent Registered Public Accounting Firm.23.2*
    
    Consent of Jun He Law offices.24.1*
    
    Power of Attorney (appears on the signature page of this report).31.1*
    
    Certificate of Chief Executive Officer pursuant to Securities Exchange Act
Rules 13a-14(a) and 15d-14(a) as Adopted Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.31.2*
    
    Certificate of Chief Financial Officer pursuant to Securities Exchange Act
Rules 13a-14(a) and 15d-14(a) as Adopted Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.32.1*
    
    Certificate of Chief Executive Officer pursuant to 18 U.S.C. section 1350.32.2*
    
    Certificate of Chief Financial Officer pursuant to 18 U.S.C. section 1350.
 
 *
    
    Filed herewith.#
    
    Indicates a management contract or compensatory plan or arrangement, as required by Item
15(a)3.