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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, 2006
 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
    
    N/A(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




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SINA CORPORATION
 INDEX
 Page No.PART I.Item 1.
    
    Business
    
    
    3Item 1A.
    
    Risk Factors
    
    
    21Item 1B.
    
    Unresolved Staff Comments
    
    
    41Item 2.
    
    Properties
    
    
    41Item 3.
    
    Legal Proceedings
    
    
    41Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    41PART II.Item 5.
    
    Market for the Registrants Common Equity, Related
Stockholder Matters and Issuer Purchases of Equity
Securities
    
    
    42Item 6.
    
    Selected Financial Data
    
    
    44Item 7.
    
    Managements Discussion and Analysis of Financial
Condition and Results of Operations
    
    
    45Item 7A.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    
    59Item 8.
    
    Financial Statements and Supplementary Data
    
    
    61Item 9.
    
    Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure
    
    
    97Item 9A.
    
    Controls and Procedures
    
    
    97Item 9B.
    
    Other Information
    
    
    97PART III.Item 10.
    
    Directors and Executive Officers of the Registrant
    
    
    97Item 11.
    
    Executive Compensation
    
    
    97Item 12.
    
    Security Ownership of Certain Beneficial Owners and
Management and Related Stockholder Matters
    
    
    97Item 13.
    
    Certain Relationships and Related Transactions
    
    
    97Item 14.
    
    Principal Accountant Fees and Services
    
    
    98PART IV.Item 15.
    
    Exhibits and Financial Statement Schedules
    
    
    98Signatures
    
    
    98Power of Attorney
    
    
    99Exhibit IndexEXHIBIT 21.1EXHIBIT 23.1EXHIBIT 23.2EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1EXHIBIT 32.2
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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.
 Foreign Private Issuer Status
  
 PART I
 
 Item 1: Business
 Overview
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Market Opportunity
   Properties and Product Offerings
  Revenue
    

Advertising (online advertising)Classification
    
    Non-advertising (MVAS, search, and other fee-based services)
 SINASINA.com
    
    
    SINA Mobile
    
    
    SINA Community
    
    
    SINA.net
    
    
    E-CommerceProperties 
and 
Services
    
    
    o News and
online vertical content
o Online advertising
    
    
    o SMS
o IVR
o MMS
o WAP
o CRBT
o KJAVA
    
    

o
Blog
o Casual games
o Email
o Podcasting
    
    
    o Enterprise
solutions
o Search
    
    
    o Online
shopping
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SINA.com
     SINA News
 SINA Sports
 SINA Entertainment.
 SINA Auto
 SINA Finance.
 SINA Real Estate.
 SINA Technology.
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SINA Game.
 SINA Eladies.
 SINA Video.
 SINA WAP.
 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
  SINA SMS.
 SINA MMS.
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SINA IVR.
 SINA WAP.
 SINA CRBT.
 SINA KJAVA/BREW.
 SINA Community
  SINA Blog.
 SINA Podcast.
 SINA Mail.
 SINA Circle.
 SINA BBS.
 SINA Post-it.
 SINA.net
  Search and Listings.
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SINA iAsk.
 SINA E-Commerce
   Strategic Relationships
  Content Partnerships
  Application and Service Partnership
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Technology Infrastructure
   Seasonality
  Competition
  Portals
  Vertical Players
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International Players
  Traditional Media
   Intellectual Property and Proprietary Rights
   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
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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
 PRC Corporate Structure
  
    
    Beijing SINA Information Technology Co. Ltd. (BSIT)
    
    Star-Village.com (Beijing) Internet Technology Limited
    
    Beijing New Media Information Technology Co. Ltd.
    
    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, selling the
advertisements to advertisers and providing MVAS in China via third party mobile operators
to the users. It is 1.5% owned by Yan Wang, the Companys Vice Chairperson, 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.
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
    
    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.
  Classified Regulations
 Foreign Investment in Value-added Telecom Services
 Circular of the Ministry of Information Industry on Intensifying the Administration of
Foreign Investment in Value-added Telecommunication Services
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Self-Correction Scheme of the ICP Companys
Multi-regional Value-added Telecommunication Business www.sina.com.cn
 Notice of Acceptance of Transfer Application Form of Application for Transfer of Domestic Domain Name
 Internet Information Services
 Measures for the Administration of Internet Information Services
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Online News Publishing
 Provisional Regulations for the Administration
of Web site Operation of News Publication Services Provisions for the Administration of
Internet News Information Services, respectively,
   Online Transmission of Audio-Visual Programs
 Measures for the Administration of 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
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Short Message Services
 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
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the Provisional Regulations for the Administration of Online Culture
 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
  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
  Notice concerning the Passage of Re-examination of
Health-related Information Service
 Online Cultural Products
 Provisional Regulations for the Administration of Online Culture
 
    
    production, duplication, import, wholesale, retail, leasing or broadcasting of online
cultural products;
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
    
    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
    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;
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
    
    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 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);
    
    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)
their Implementing Rules (2002);
    
    Measures for the Administration of IP Address Archiving (2005); and
    
    Provision on Technical Measures for Internet Security Protection (2005).
  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;
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
    
    place the registration marks on their web sites homepages; and
    
    register their web site names with the BAIC.
   Encryption Software
   
    
    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
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Administrative Protection of Internet Copyright
 Measures for the Administrative Protection of Internet Copyright Measures for Imposing Copyright Administrative Penalties
     Employees
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Financial Information about Geographic Areas
  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 or secure premium content.
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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;
    
    the maintenance and enhancement of our brands in a cost effective manner;
    
    increased competition and potential downward pressure on online advertising prices and limitations on web page
space;
    
    the change in government policy that would curtail or restrict our online advertising services;
    
    the acceptance of online advertising as an effective way for advertisers to market their businesses;
    
    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, China Unicom or other mobile operators, on whom we rely for
service delivery, billing and payment 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; and
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
    
    changes in government regulations, which could restrict our MVAS offerings, curtail our ability to market our services or
change user adoption or usage pattern in a negative way. For example, MII has proposed to unify the dialing codes of each
service provider (SP), which may increase the number of digits a user must input to subscribe to an SPs MVAS, thereby,
making the purchasing process more complicated. MII has also proposed to require mobile users, including pre-paid card
subscribers, to register their real identity. Implementation of these proposals may lead to less subscription of MVAS and a
decrease in new customers.
  With respect to MVAS, we rely on China Mobile, China Unicom and other operators for service
delivery, billing and payment 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 web site 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 such 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.
    
    In April 2006, China Unicom issued a new policy that sets price
ceilings for usage-based and monthly subscription SMS. Such change may
require us to lower our current prices on certain SMS services or
discontinue offering these services completely.
    
    In July 2006, China Mobile made significant changes to its policy on
subscription-based MVAS, which included requiring double confirmations
on new MVAS subscriptions as well as sending SMS reminders to existing
monthly subscribers of SMS, MMS and WAP to inform them of their MVAS
subscription and fee information. Certain provincial subsidiaries,
such as Guangdong Mobile, one of China Mobiles largest provincial
subsidiaries, have begun to discontinue charging MVAS users monthly
subscription fees unless the users reply to the SMS reminders and
reconfirm their subscription. In addition, China Mobiles provincial
subsidiaries began
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canceling existing WAP subscriptions that have been inactive for the prior four months and
existing SMS subscriptions of users who have not successfully received more than three SMS
messages during the month. These policy changes from China Mobile have reduced our ability to
acquire new monthly MVAS subscribers and increased the churn rate of existing monthly MVAS
subscribers.
    
    In September 2006, China Unicom began enforcing a policy of double confirmation on new MVAS
subscriptions. Such change has significantly reduced our ability to acquire new monthly MVAS
subscribers.
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actual estimated
   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.
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Our investment in online games, search, instant messaging, WAP portal and services related to
user-generated content, such as blogs, may not be successful.
  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.
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Our strategy of acquiring complementary assets, technologies and businesses may fail and may
result in equity or earnings dilution.
  We may not be able to manage our expanding operations effectively, which could harm our
business.
  Our business and growth could suffer if we are unable to hire and retain key personnel that
are in high demand.
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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
web site.
  
    
    We only have contractual control over our web site 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
telecommunication services or value-added
telecommunication services, ultimately not to exceed
49% or 50%, respectively. The Administrative Measures
for Telecommunications Business Operating License
were promulgated by 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.
    
    The numerous and often vague restrictions on
acceptable content in China subject us to potential
civil and criminal liability, temporary blockage of
our web site or complete cessation of our web site.
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 web site 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, 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, without limitation, online advertising,
online news reporting, online publishing, online
education, online gaming, online transmission of
audio-visual programs, online health diagnosis and
treatment, and the provision of industry-specific
(e.g., drug-related) information over the Internet.
Other aspects of our online operations, such as
e-commerce or blog services may be subject to
regulation in the future. Our operations may not be
consistent with
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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 July 13, 2006, MII issued The Circular of the
Ministry of Information Industry on Intensifying the
Administration of Foreign Investment in Value-added
Telecommunication Services(the MII Circular 2006).
According to the MII Circular 2006, since the FITE
Regulation went into effect, some foreign investors
have, by means of delegation of domain names and
license of trademarks, conspired with domestic
value-added telecom enterprises to circumvent the
requirements of FITE Regulations and been engaged in
value-added telecom services illegally.
  Self-Correction Scheme of the ICP Companys
Multi-regional Value-added Telecommunication Business www.sina.com.cn
 Notice of Acceptance of Transfer Application Form of Application for Transfer of Domestic Domain Name
  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.
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Self-Correction Scheme of the ICP
Companys Multi-regional Value-added Telecommunication Business www.sina.com.cn
 Notice of Acceptance of Transfer Application Form of Application for Transfer of Domestic Domain Name
  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.
   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%.
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Restrictions on paying dividends or making other payments to us bind our subsidiaries and VIEs
in China.
  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.
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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.
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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.
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Hong Kong Personal
Data Ordinance
 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.
   - 34 -




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##### Table of Contents



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.
     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.
  Our significant amount of deposits in certain banks in China may be at risk if these banks go
bankrupt during our deposit period.
  - 35 -




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##### Table of Contents



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 tampering with our systems.
   Future outbreaks of Severe Acute Respiratory Syndrome (SARS), Avian flu or other widespread
public health problems could adversely affect our business.
  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.
  - 36 -




---



##### Table of Contents



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.
   - 37 -




---



##### Table of Contents



Changes to existing accounting pronouncements, including SFAS 123R, or taxation rules or
practices, including FIN 48, 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 when we must reassess our
goodwill or other amortizable intangible assets arising from acquisitions.
  With respect to MVAS, we
rely on China Mobile and China Unicom for
 - 38 -




---



##### Table of Contents



service delivery, billing and payment collection.
 We may be required to record a significant charge to earnings from the declines in fair value
of our marketable securities if such declines become other than temporary or if we are unable to
hold such investments until maturity.
  While we believe that we currently have adequate internal control procedures in place, we are
still exposed to potential risks from 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.
  - 39 -




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##### Table of Contents



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.
  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.
   - 40 -




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##### Table of Contents



We have incurred accumulated deficits in the past and we may incur future losses.
  
 Item 1B: Unresolved Staff Comments
  
 Item 2: Properties
  
 Item 3: Legal Proceedings
    
 Item 4: Submission of Matters to a Vote of Security Holders
  - 41 -




---



##### 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
  2006
    
    2005High
    
    Low
    
    High
    
    LowFirst Quarter
    
    
    28.00
    
    
    
    21.83
    
    
    
    34.12
    
    
    
    23.03Second Quarter
    
    
    29.24
    
    
    
    22.88
    
    
    
    32.97
    
    
    
    25.81Third Quarter
    
    
    26.57
    
    
    
    20.91
    
    
    
    29.78
    
    
    
    24.82Fourth Quarter
    
    
    29.35
    
    
    
    24.50
    
    
    
    26.88
    
    
    
    23.65
  Securities authorized for issuance under equity compensation plans
  Number ofsecuritiesremaining availablefor future issuanceWeighted average
    
    under equityNumber of securities to
    
    exercise price of
    
    compensation plansbe issued upon exercise
    
    outstanding
    
    (excludingof outstanding options,
    
    options, warrants
    
    securitieswarrants and rights
    
    and rights
    
    reflected in column (a))Plan Category
    
    (a)
    
    (b)
    
    (c)Equity
compensation plans
approved by
security holders
    
    
    4,092,200
    
    
    $
    20.95
    
    
    
    1,302,632Equity compensation
plans not approved
by security holders
    
    
    
    
    
    
    N/A
    
    
    
    Total
    
    
    4,092,200
    
    
    $
    20.95
    
    
    
    1,302,632
 Issuer Purchases of Equity Securities
  Stock Performance Graph
  - 42 -




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##### Table of Contents



COMPARISON  OF FIVE YEAR CUMULATIVE TOTAL RETURN
 
  December
    
    
    June
    
    
    December
    
    
    June
    
    
    December
    
    
    June
    
    
    December
    
    
    June
    
    
    December
    
    
    June
    
    
    December2001
    
    
    2002
    
    
    2002
    
    
    2003
    
    
    2003
    
    
    2004
    
    
    2004
    
    
    2005
    
    
    2005
    
    
    2006
    
    
    2006SINA Corporation
    
    
    100.00
    
    
    
    110.76
    
    
    
    411.39
    
    
    
    1,281.71
    
    
    
    2,136.08
    
    
    
    2,087.97
    
    
    
    2,029.11
    
    
    
    1,765.82
    
    
    
    1,529.11
    
    
    
    1,581.01
    
    
    
    1,816.46NASDAQ Composite
Index
    
    
    100.00
    
    
    
    84.60
    
    
    
    69.66
    
    
    
    79.55
    
    
    
    99.71
    
    
    
    102.80
    
    
    
    113.79
    
    
    
    108.72
    
    
    
    114.47
    
    
    
    114.98
    
    
    
    124.20Morgan Stanley
Internet Index
    
    
    100.00
    
    
    
    78.12
    
    
    
    74.61
    
    
    
    87.81
    
    
    
    105.37
    
    
    
    113.64
    
    
    
    115.73
    
    
    
    103.88
    
    
    
    112.10
    
    
    
    103.51
    
    
    
    124.73
 - 43 -




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##### Table of Contents



Item 6: Selected Financial Data
  Six monthsended
    
    Year endedYears ended December 31,
    
    December 31,
    
    June 30,2006
    
    2005
    
    2004
    
    2003
    
    2002
    
    2002
    
    2002(unaudited)(in thousands, except per share data)Operations:Net revenues
    
    $
    212,854
    
    
    $
    193,552
    
    
    $
    199,987
    
    
    $
    114,285
    
    
    $
    38,894
    
    
    $
    23,216
    
    
    $
    28,508Gross profit
    
    
    133,444
    
    
    
    130,445
    
    
    
    138,376
    
    
    
    79,848
    
    
    
    23,385
    
    
    
    14,674
    
    
    
    14,900Income (loss)
before income taxes
    
    
    43,967
    
    
    
    45,525
    
    
    
    69,224
    
    
    
    32,318
    
    
    
    (4,949
    )
    
    
    916
    
    
    
    (16,092
    )Net income
(loss)*
    
    
    39,916
    
    
    
    43,115
    
    
    
    65,996
    
    
    
    31,423
    
    
    
    (4,949
    )
    
    
    916
    
    
    
    (16,092
    )Net income (loss)
per share*Basic
    
    $
    0.74
    
    
    $
    0.82
    
    
    $
    1.33
    
    
    $
    0.66
    
    
    $
    (0.11
    )
    
    $
    0.02
    
    
    $
    (0.36
    )Diluted
    
    $
    0.69
    
    
    $
    0.75
    
    
    $
    1.15
    
    
    $
    0.58
    
    
    $
    (0.11
    )
    
    $
    0.02
    
    
    $
    (0.36
    )
 December 31,2006
    
    2005
    
    2004
    
    2003
    
    2002(in thousands)Financial position:Cash, cash equivalents
and short-term
investments
    
    $
    362,751
    
    
    $
    300,689
    
    
    $
    275,635
    
    
    $
    227,164
    
    
    $
    96,736Working capital
    
    
    267,116
    
    
    
    297,910
    
    
    
    252,027
    
    
    
    219,866
    
    
    
    91,814Total assets
    
    
    538,809
    
    
    
    468,721
    
    
    
    430,425
    
    
    
    289,897
    
    
    
    130,479Long-term liabilities
    
    
    
    
    
    
    100,000
    
    
    
    102,142
    
    
    
    100,000
    
    
    
    Total liabilities
    
    
    150,996
    
    
    
    149,099
    
    
    
    177,080
    
    
    
    130,390
    
    
    
    13,092Total shareholders equity
    
    
    387,813
    
    
    
    319,622
    
    
    
    253,345
    
    
    
    159,507
    
    
    
    117,387
 
 *
    
    Fiscal 2006 includes a $9.5 million or $0.16 diluted net income per share stock-based
compensation charge, which the Company began to include in its costs of revenues and operating
expenses starting January 1, 2006, in accordance with the Statement of Financial Accounting
Standards (SFAS) No. 123 (revised 2004), Share-Based Payment. - 44 -




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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
      - 45 -




---



##### Table of Contents



Critical Accounting Policies, Judgments and Estimates
   Revenue recognition
 Advertising
  MVAS
   - 46 -




---



##### Table of Contents



Advertising expenses
  Business combinations
  Goodwill
  Property and equipment
  - 47 -




---



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Impairment
of long-lived assets
  Stock-based compensation
      - 48 -




---



##### Table of Contents



Income taxes
  Foreign currency
  Equity investments
  - 49 -




---



##### Table of Contents



Marketable securities
  Recent Accounting Pronouncements
     Results of Operations
 Net revenues
 Years ended December 31,2006
    
    
    2005
    
    
    2004
    
    
    % of Change(in thousands, except percentages)YOY
    
    
    YOY06
& 05
    
    

05
& 04Net RevenuesAdvertising
    
    $
    120,067
    
    
    
    56
    %
    
    $
    84,999
    
    
    
    44
    %
    
    $
    65,417
    
    
    
    33
    %
    
    
    41
    %
    
    
    30
    %Non-advertising:MVAS
    
    
    86,257
    
    
    
    41
    %
    
    
    98,070
    
    
    
    51
    %
    
    
    123,954
    
    
    
    62
    %
    
    
    -12
    %
    
    
    -21
    %Others
    
    
    6,530
    
    
    
    3
    %
    
    
    10,483
    
    
    
    5
    %
    
    
    10,616
    
    
    
    5
    %
    
    
    -38
    %
    
    
    -1
    %Subtotal
    
    
    92,787
    
    
    
    44
    %
    
    
    108,553
    
    
    
    56
    %
    
    
    134,570
    
    
    
    67
    %
    
    
    -15
    %
    
    
    -19
    %Total net revenues
    
    $
    212,854
    
    
    
    100
    %
    
    $
    193,552
    
    
    
    100
    %
    
    $
    199,987
    
    
    
    100
    %
    
    
    10
    %
    
    
    -3
    %
 - 50 -




---



##### Table of Contents



Advertising.
  Non-advertising.
 MVAS
 Years ended December 31,2006
    
    
    2005
    
    
    2004
    
    
    % of Change(in thousands, except percentages)YOY
    
    
    YOY06
& 05
    
    

05
& 042.0G products
    
    $
    73,665
    
    
    
    85
    %
    
    $
    83,745
    
    
    
    85
    %
    
    $
    109,712
    
    
    
    89
    %
    
    
    -12
    %
    
    
    -24
    %2.5G products
    
    
    12,592
    
    
    
    15
    %
    
    
    14,325
    
    
    
    15
    %
    
    
    14,242
    
    
    
    11
    %
    
    
    -12
    %
    
    
    1
    %Total MVAS revenues
    
    $
    86,257
    
    
    
    100
    %
    
    $
    98,070
    
    
    
    100
    %
    
    $
    123,954
    
    
    
    100
    %
    
    
    -12
    %
    
    
    -21
    %
   - 51 -




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##### Table of Contents



Other non-advertising revenues
   Costs of revenues
 Years ended December 31,2006
    
    
    2005
    
    
    2004
    
    
    % of Change
    
    
    % of ChangeYOY 06 & 05
    
    
    YOY 05 & 04(In thousands, except percentages)Costs of revenues:Advertising
    
    $
    42,529
    
    
    $
    27,627
    
    
    $
    22,187
    
    
    
    54
    %
    
    
    25
    %Non-advertising:MVAS
    
    
    34,255
    
    
    
    33,814
    
    
    
    38,277
    
    
    
    1
    %
    
    
    -12
    %Other
    
    
    2,626
    
    
    
    1,666
    
    
    
    1,147
    
    
    
    58
    %
    
    
    45
    %Subtotal
    
    
    36,881
    
    
    
    35,480
    
    
    
    39,424
    
    
    
    4
    %
    
    
    -10
    %Total costs of revenues
    
    $
    79,410
    
    
    $
    63,107
    
    
    $
    61,611
    
    
    
    26
    %
    
    
    2
    %
 - 52 -




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##### Table of Contents



Advertising.
  Non-advertising.
    Gross profit margins
 Years ended December 31,2006
    
    2005
    
    2004Gross profit margins:Advertising
    
    
    65
    %
    
    
    67
    %
    
    
    66
    %Non-advertising:MVAS
    
    
    60
    %
    
    
    66
    %
    
    
    69
    %Other
    
    
    60
    %
    
    
    84
    %
    
    
    89
    %Subtotal
    
    
    60
    %
    
    
    67
    %
    
    
    71
    %Overall
    
    
    63
    %
    
    
    67
    %
    
    
    69
    %
 - 53 -




---



##### Table of Contents



Advertising.
 Non-advertising.
  Operating expenses
 Years ended December 31,2006
    
    2005
    
    2004
    
    % of change(in thousands, except percentages)% of net
    
    
    
    
    
    % of net
    
    
    
    
    
    % of net
    
    YOY
    
    YOYrevenues
    
    
    
    
    
    revenues
    
    
    
    
    
    revenues
    

06
& 05
    

05
& 04Sales and marketing expenses
    
    $
    49,972
    
    
    
    23
    %
    
    $
    51,690
    
    
    
    27
    %
    
    $
    39,585
    
    
    
    20
    %
    
    
    -3
    %
    
    
    31
    %Product development expenses
    
    $
    19,573
    
    
    
    9
    %
    
    $
    15,268
    
    
    
    8
    %
    
    $
    10,355
    
    
    
    5
    %
    
    
    28
    %
    
    
    47
    %General and administrative expenses
    
    $
    27,172
    
    
    
    13
    %
    
    $
    18,820
    
    
    
    10
    %
    
    $
    15,619
    
    
    
    8
    %
    
    
    44
    %
    
    
    20
    %
 Sales and marketing expenses.
 Product development expenses.
 General and administrative expenses.
 - 54 -




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##### Table of Contents



Amortization of intangible assets
 Interest and other income
  Amortization of convertible debt issuance cost
  Gain on sale of business and investments, net
  Years ended December 31,2006
    
    
    2005
    
    
    2004(In thousands)Bravado
    
    $
    161
    
    
    $
    1,487
    
    
    $
    COAL
    
    
    
    
    
    
    2,649
    
    
    
    Shanghai NC Soft
    
    
    2,006
    
    
    
    
    
    
    
    Others
    
    
    (134
    )
    
    
    
    
    
    
    1,160$
    2,033
    
    
    $
    4,136
    
    
    $
    1,160% of total net revenues
    
    
    1
    %
    
    
    2
    %
    
    
    1
    %
  Loss on equity investments, net
  - 55 -




---



##### Table of Contents



Years ended December 31,2006
    
    
    2005

    
    2004(In thousands)Shanghai NC Soft
    
    $
    (108
    )
    
    $
    33
    
    
    $
    (964
    )COAL
    
    
    
    
    
    
    (2,187
    )
    
    
    (2,168
    )Others
    
    
    (582
    )
    
    
    (656
    )
    
    
    (33
    )$
    (690
    )
    
    $
    (2,810
    )
    
    $
    (3,165
    )% of total net revenues
    
    
    *
    
    
    
    (1
    %)
    
    
    (2
    %)
 
 *
    
    Less than 1% Provision for income taxes
 Years ended December 31,2006
    
    
    2005

    
    2004(In thousands)Current income tax provision
    
    $
    4,401
    
    
    $
    2,671
    
    
    $
    3,441Deferred income tax benefit
    
    
    (350
    )
    
    
    (261
    )
    
    
    (213
    )Total
    
    $
    4,051
    
    
    $
    2,410
    
    
    $
    3,228Effective tax rate for China operation
    
    
    7
    %
    
    
    5
    %
    
    
    4
    %
  Liquidity and Capital Resources
 As of December 312006
    
    2005
    
    2004(In thousands)Cash and cash equivalents and short-term investments
    
    $
    362,751
    
    
    $
    300,689
    
    
    $
    275,635Working capital
    
    $
    267,116
    
    
    $
    297,910
    
    
    $
    252,027Shareholders equity
    
    $
    387,813
    
    
    $
    319,622
    
    
    $
    253,345
   - 56 -




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##### Table of Contents



Years ended December 31,2006
    
    
    2005
    
    
    2004(In thousands)Net cash provided by operating activities
    
    $
    63,097
    
    
    $
    58,273
    
    
    $
    74,858Net cash used in investing activities
    
    
    (850
    )
    
    
    (133,810
    )
    
    
    (95,007
    )Net cash provided by financing activities
    
    
    9,979
    
    
    
    7,015
    
    
    
    15,769Effect of exchange rate changes on cash and cash equivalents
    
    
    2,541
    
    
    
    3,164
    
    
    
    Net increase (decrease) in cash and cash equivalents
    
    
    74,767
    
    
    
    (65,358
    )
    
    
    (4,380
    )Cash and cash equivalents at beginning of period
    
    
    88,410
    
    
    
    153,768
    
    
    
    158,148Cash and cash equivalents at end of period
    
    $
    163,177
    
    
    $
    88,410
    
    
    $
    153,768
 Operating activities
   - 57 -




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##### 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)Operating lease obligations
    
    
    1,637
    
    
    
    900
    
    
    
    737
    
    
    
    
    
    
    
    Purchase commitments
    
    
    22,350
    
    
    
    15,754
    
    
    
    6,185
    
    
    
    201
    
    
    
    210Total contractual obligations
    
    $
    23,987
    
    
    $
    16,654
    
    
    $
    6,922
    
    
    $
    201
    
    
    $
    210
 - 58 -




---



##### 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
   - 59 -




---



##### Table of Contents



Foreign Currency Exchange Rate Risk
  TranslationChange in the value of
    
    adjustments to
    
    Transaction gainChinese renminbi against the
    
    comprehensive income
    
    (loss)U.S. dollar
    
    (in thousands)
    
    (in thousands)Appreciate 2%
    
    $
    6,140
    
    
    $
    (80
    )Appreciate 5%
    
    $
    15,370
    
    
    $
    (200
    )Depreciate 2%
    
    $
    (6,130
    )
    
    $
    80Depreciate 5%
    
    $
    (15,300
    )
    
    $
    200
 Investment Risk
 Equity investment
  Investment
in marketable debt securities
  - 60 -




---



##### 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
    
    
    62Report of Independent Registered Public Accounting Firm
    
    
    63Consolidated Balance Sheets at December 31, 2006 and 2005
    
    
    65Consolidated Statements of Operations for the years ended December 31, 2006, 2005 and 2004
    
    
    66Consolidated Statements of Shareholders Equity for the years ended December 31, 2006,
2005 and 2004
    
    
    67Consolidated Statements of Cash Flows for the years ended December 31, 2006, 2005 and 2004
    
    
    68Notes to Consolidated Financial Statements
    
    
    70Supplementary Financial Data:Quarterly Financial Results for the two years ended December 31, 2006 and 2005
    
    
    96
 - 61 -




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MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
 Internal
Control-integrated Framework
   - 62 -




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
   Consolidated financial statements
   Internal control over financial reporting
 Internal Control  Integrated Framework Internal Control  Integrated Framework
  - 63 -




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- 64 -




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SINA CORPORATION
 
 CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
 December 31,2006
    
    
    2005ASSETSCurrent assets:Cash and cash equivalents
    
    $
    163,177
    
    
    $
    88,410Short-term investments
    
    
    199,574
    
    
    
    212,279Accounts receivable, net of allowances for doubtful
accounts of $4,471 and $2,443, respectively
    
    
    45,031
    
    
    
    33,940Short-term deferred tax assets
    
    
    437
    
    
    
    857Prepaid expenses and other current assets
    
    
    9,893
    
    
    
    11,523Total current assets
    
    
    418,112
    
    
    
    347,009Investment in Tidetime Sun
    
    
    
    
    
    
    716Property and equipment, net
    
    
    27,101
    
    
    
    22,207Equity investments
    
    
    1,170
    
    
    
    3,261Intangible assets, net
    
    
    7,871
    
    
    
    9,691Goodwill
    
    
    82,663
    
    
    
    82,663Other assets
    
    
    1,892
    
    
    
    3,174Total assets
    
    $
    538,809
    
    
    $
    468,721LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    1,614
    
    
    $
    1,582Accrued liabilities
    
    
    41,993
    
    
    
    43,235Income taxes payable
    
    
    7,389
    
    
    
    4,282Convertible debt
    
    
    100,000
    
    
    
    Total current liabilities
    
    
    150,996
    
    
    
    49,099Long-term
liabilities:Convertible debt
    
    
    
    
    
    
    100,000Total liabilities
    
    
    150,996
    
    
    
    149,099Commitments and contingencies (Note 17)Shareholders equity:Ordinary Shares: $0.133 par value; 150,000 shares
authorized; 54,344 and 53,265 shares issued and
outstanding
    
    
    7,228
    
    
    
    7,084Additional paid-in capital
    
    
    303,868
    
    
    
    284,559Retained earnings
    
    
    65,973
    
    
    
    26,057Accumulated other comprehensive income (loss):Unrealized loss on investments in marketable securities
    
    
    (2,371
    )
    
    
    (2,903
    )Cumulative translation adjustments
    
    
    13,115
    
    
    
    4,825Total shareholders equity
    
    
    387,813
    
    
    
    319,622Total liabilities and shareholders equity
    
    $
    538,809
    
    
    $
    468,721
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SINA CORPORATION
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
 Years ended December 31,2006
    
    
    2005
    
    
    2004Net revenues:Advertising
    
    $
    120,067
    
    
    $
    84,999
    
    
    $
    65,417Non-advertising
    
    
    92,787
    
    
    
    108,553
    
    
    
    134,570212,854
    
    
    
    193,552
    
    
    
    199,987Costs of revenue:Advertising (*)
    
    
    42,529
    
    
    
    27,627
    
    
    
    22,187Non-advertising
    
    
    36,881
    
    
    
    35,480
    
    
    
    39,42479,410
    
    
    
    63,107
    
    
    
    61,611Gross profit
    
    
    133,444
    
    
    
    130,445
    
    
    
    138,376Operating expenses:Sales and marketing (*)
    
    
    49,972
    
    
    
    51,690
    
    
    
    39,585Product development (*)
    
    
    19,573
    
    
    
    15,268
    
    
    
    10,355General and administrative (*)
    
    
    27,172
    
    
    
    18,820
    
    
    
    15,619Amortization of intangible assets
    
    
    1,820
    
    
    
    3,159
    
    
    
    3,492Total operating expenses
    
    
    98,537
    
    
    
    88,937
    
    
    
    69,051Income from operations
    
    
    34,907
    
    
    
    41,508
    
    
    
    69,325Interest and other income, net
    
    
    8,549
    
    
    
    6,551
    
    
    
    5,139Amortization of convertible debt issuance cost
    
    
    (685
    )
    
    
    (685
    )
    
    
    (685
    )Gain on sale of business and investment, net
    
    
    2,033
    
    
    
    4,136
    
    
    
    1,160Loss on investment in Tidetime Sun
    
    
    (147
    )
    
    
    (3,175
    )
    
    
    (2,550
    )Share of loss of equity investments, net
    
    
    (690
    )
    
    
    (2,810
    )
    
    
    (3,165
    )Income before income taxes
    
    
    43,967
    
    
    
    45,525
    
    
    
    69,224Income tax expenses
    
    
    (4,051
    )
    
    
    (2,410
    )
    
    
    (3,228
    )Net income
    
    $
    39,916
    
    
    $
    43,115
    
    
    $
    65,996Basic net income per share
    
    $
    0.74
    
    
    $
    0.82
    
    
    $
    1.33Shares used in computing basic income per share
    
    
    53,696
    
    
    
    52,485
    
    
    
    50,274Diluted net income per share
    
    $
    0.69
    
    
    $
    0.75
    
    
    $
    1.15Shares used in computing diluted income per share
    
    
    58,549
    
    
    
    58,792
    
    
    
    58,204
 
 (*)
    
    Costs of revenues and operating expenses for the year ended December 31, 2006 include
stock-based compensation expense in accordance with SFAS 123R, which the Company adopted on
January 1, 2006. See Note 13  Shareholders Equity to the Consolidated Financial Statements
for additional information.  - 66 -




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##### 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
    
    
    Deficit)
    
    
    Income(Loss)
    
    
    EquityBalances 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
    
    
    
    319,622Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39,916
    
    
    
    
    
    
    
    39,916Unrealized gain on marketable
securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    532
    
    
    
    532Currency translation adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,290
    
    
    
    8,290Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    48,738Issuance of ordinary shares
pursuant to stock plans
    
    
    895
    
    
    
    119
    
    
    
    9,860
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,979Stock-based compensation expenses
    
    
    
    
    
    
    
    
    
    
    9,474
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,474Business acquisition
    
    
    184
    
    
    
    25
    
    
    
    (25
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balances at December 31, 2006
    
    
    54,344
    
    
    $
    7,228
    
    
    $
    303,868
    
    
    $
    
    
    
    $
    65,973
    
    
    $
    10,744
    
    
    $
    387,813
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##### Table of Contents



SINA CORPORATION
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 Years ended December 31,2006
    
    
    2005
    
    
    2004Cash flows from operating activities:Net income
    
    $
    39,916
    
    
    $
    43,115
    
    
    $
    65,996Adjustments to reconcile net income to net cash provided
by operating activities:Depreciation
    
    
    9,892
    
    
    
    9,593
    
    
    
    5,827Stock-based compensation
    
    
    9,474
    
    
    
    
    
    
    
    Amortization of convertible debt issuance cost
    
    
    685
    
    
    
    685
    
    
    
    685Amortization of intangible assets
    
    
    1,820
    
    
    
    3,159
    
    
    
    3,492Allowances for doubtful accounts
    
    
    5,044
    
    
    
    2,271
    
    
    
    1,060Deferred income tax benefits
    
    
    (350
    )
    
    
    (261
    )
    
    
    (213
    )Gain on sale of business and investment, net
    
    
    (2,033
    )
    
    
    (4,136
    )
    
    
    (1,160
    )Loss on investment in Tidetime Sun
    
    
    147
    
    
    
    3,175
    
    
    
    2,550Share of loss of equity investments, net
    
    
    690
    
    
    
    2,810
    
    
    
    3,165Loss on disposal of property and equipment
    
    
    17
    
    
    
    156
    
    
    
    33Changes in assets and liabilities (net of effect from
acquisition and disposal):Accounts receivable
    
    
    (14,791
    )
    
    
    4,324
    
    
    
    (19,469
    )Prepaid expenses and other current assets
    
    
    (490
    )
    
    
    3,227
    
    
    
    (2,586
    )Other assets
    
    
    1,429
    
    
    
    (803
    )
    
    
    311Accounts payable
    
    
    (1
    )
    
    
    (513
    )
    
    
    671Accrued liabilities
    
    
    8,726
    
    
    
    (8,217
    )
    
    
    13,006Income taxes payable
    
    
    2,922
    
    
    
    (312
    )
    
    
    1,490Net cash provided by operating activities
    
    
    63,097
    
    
    
    58,273
    
    
    
    74,858Cash flows from investing activities:Purchases of short-term investments
    
    
    (102,135
    )
    
    
    (212,532
    )
    
    
    (110,712
    )Maturities of short-term investments
    
    
    120,121
    
    
    
    122,040
    
    
    
    57,669Purchases of property and equipment
    
    
    (14,090
    )
    
    
    (15,369
    )
    
    
    (13,000
    )Cash paid for business acquisitions, net of cash acquired
    
    
    (11,266
    )
    
    
    (26,141
    )
    
    
    (27,573
    )Cash paid for equity investments
    
    
    
    
    
    
    (3,024
    )
    
    
    (2,660
    )Deposits on equity investment and acquisition
    
    
    
    
    
    
    (800
    )
    
    
    (241
    )Proceeds from sale of business, net
    
    
    636
    
    
    
    1,730
    
    
    
    Proceeds from sale of investments
    
    
    5,315
    
    
    
    286
    
    
    
    1,215Proceeds from sale of investment in Tidetime Sun
    
    
    569
    
    
    
    
    
    
    
    295Net cash used in investing activities
    
    
    (850
    )
    
    
    (133,810
    )
    
    
    (95,007
    )Cash flows from financing activities:Proceeds from issuance of ordinary shares
    
    
    9,979
    
    
    
    7,015
    
    
    
    15,769Net cash provided by financing activities
    
    
    9,979
    
    
    
    7,015
    
    
    
    15,769Effect of exchange rate change on cash and cash equivalents
    
    
    2,541
    
    
    
    3,164
    
    
    
    Net increase (decrease) in cash and cash equivalents
    
    
    74,767
    
    
    
    (65,358
    )
    
    
    (4,380
    )Cash and cash equivalents at the beginning of the year
    
    
    88,410
    
    
    
    153,768
    
    
    
    158,148Cash and cash equivalents at the end of the year
    
    $
    163,177
    
    
    $
    88,410
    
    
    $
    153,768
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##### Table of Contents



SINA CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(In thousands)
 Years ended December 31 ,2006
    
    
    2005
    
    
    2004Supplemental disclosures of cash flow information:Cash paid for income taxes
    
    $
    1,294
    
    
    $
    2,891
    
    
    $
    1,090Cash paid for acquisitions, net:Cash paid for acquisitions
    
    $
    (11,266
    )
    
    $
    (26,141
    )
    
    $
    (29,100
    )Cash acquired
    
    
    
    
    
    
    
    
    
    
    1,527$
    (11,266
    )
    
    $
    (26,141
    )
    
    $
    (27,573
    )Supplemental disclosure of noncash financing activities:Increase in equity investment from deposit on equity investment
    
    $
    800
    
    
    $
    
    
    
    $
    Ordinary shares issued and subject to subsequent issuance for
acquisitions
    
    $
    
    
    
    $
    13,882
    
    
    $
    12,284Deferred non-advertising services exchanged for equity
interest in joint venture
    
    $
    
    
    
    $
    
    
    
    $
    3,430
  - 69 -




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##### Table of Contents



SINA CORPORATION
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 1. Significant Accounting Policies
 Business
  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, selling the
advertisements to advertisers and providing MVAS in China via third party mobile operators
to the users. It is 1.5% owned by Yan Wang, the Companys Vice Chairperson, 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.
    
    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
 - 70 -




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##### Table of Contents



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
  - 71 -




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##### Table of Contents



Allowances for doubtful accounts
  Long-lived assets
 Property and equipment.
  Goodwill.
 Intangible assets other than goodwill.
 Impairment
of long-lived assets.
 - 72 -




---



##### Table of Contents



Equity investments
   Business
combinations
  Convertible debt
  Revenue recognition
 Advertising
    - 73 -




---



##### Table of Contents



Non-advertising
 MVAS
      Fee-based services.
 - 74 -




---



##### Table of Contents



E-commerce.
 Enterprise services.
  Costs of revenues
 Advertising
  Non-advertising
  Product development expenses
  - 75 -




---



##### Table of Contents



Advertising expenses
  Stock-based incentive compensation
      Operating leases
  Income taxes
  - 76 -




---



##### Table of Contents



Foreign currency
  Net income per share
   Comprehensive income
  Recent accounting pronouncements
   - 77 -




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##### 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
 - 78 -




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##### Table of Contents



Crillion
   Cash
    
    $
    1,453Accounts receivable
    
    
    3,845Other assets
    
    
    772Intangible assets
    
    
    4,466Goodwill
    
    
    50,800Current liabilities
    
    
    (1,475
    )$
    59,861
  Davidhill .
  - 79 -




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##### Table of Contents



Cash
    
    $
    10Fixed assets
    
    
    187Intangible assets
    
    
    10,780Goodwill
    
    
    13,772Purchase price
    
    $
    24,749
  3. Goodwill and Intangible Assets
  December 31,2006
    
    
    2005(In thousands)Davidhill
    
    $
    13,772
    
    
    $
    13,772Crillion and Memestar
    
    
    68,891
    
    
    
    68,891Total
    
    $
    82,663
    
    
    $
    82,663
   December 31, 2006
    
    
    December 31, 2005Accumulated
    
    
    
    
    
    
    
    
    
    
    AccumulatedCost
    
    
    amortization
    
    
    Net
    
    
    Cost
    
    
    amortization
    
    
    Net(In thousands)Crillion and MemestarNon-compete agreements
    
    $
    3,147
    
    
    $
    (3,001
    )
    
    $
    146
    
    
    $
    3,147
    
    
    $
    (2,371
    )
    
    $
    776DavidhillNon-compete agreements
    
    
    480
    
    
    
    (480
    )
    
    
    
    
    
    
    480
    
    
    
    (320
    )
    
    
    160Technology
    
    
    10,300
    
    
    
    (2,575
    )
    
    
    7,725
    
    
    
    10,300
    
    
    
    (1,545
    )
    
    
    8,755Subtotal
    
    
    10,780
    
    
    
    (3,055
    )
    
    
    7,725
    
    
    
    10,780
    
    
    
    (1,865
    )
    
    
    8,915Total
    
    $
    13,927
    
    
    $
    (6,056
    )
    
    $
    7,871
    
    
    $
    13,927
    
    
    $
    (4,236
    )
    
    $
    9,691
 - 80 -




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##### Table of Contents



Fiscal year
    
    (In thousands)2007
    
    $
    1,1762008
    
    
    1,0302009
    
    
    1,0302010
    
    
    1,0302011
    
    
    1,030Thereafter
    
    
    2,575Total expected amortization expense
    
    $
    7,871
 4. Investment in Tidetime Sun
  5. Equity Investments
  Shanghai NC-SINA
    
    
    COAL
    
    
    Others
    
    
    Total(In thousands)Balances at December 31, 2004
    
    $
    1,384
    
    
    $
    1,932
    
    
    $
    1,225
    
    
    $
    4,541Investments
    
    
    
    
    
    
    1,749
    
    
    
    1,275
    
    
    
    3,024Sale of investments
    
    
    
    
    
    
    (1,494
    )
    
    
    
    
    
    
    (1,494
    )Share of gain (loss) of equity investments
    
    
    33
    
    
    
    (2,187
    )
    
    
    (656
    )
    
    
    (2,810
    )Balances at December 31, 2005
    
    
    1,417
    
    
    
    
    
    
    
    1,844
    
    
    
    3,261Investments
    
    
    
    
    
    
    
    
    
    
    800
    
    
    
    800Share of loss of equity investments
    
    
    (108
    )
    
    
    
    
    
    
    (582
    )
    
    
    (690
    )Sale of investments
    
    
    (1,309
    )
    
    
    
    
    
    
    (892
    )
    
    
    (2,201
    )Balances at December 31, 2006
    
    $
    
    
    
    $
    
    
    
    $
    1,170
    
    
    $
    1,170
  Years ended December 31,2006
    
    

2005
    
    

2004(In thousands)COAL
    
    $
    
    
    
    $
    2,649
    
    
    $
    Shanghai NC Soft
    
    
    2,006
    
    
    
    
    
    
    
    Others
    
    
    (134
    )
    
    
    
    
    
    
    1,160$
    1,872
    
    
    $
    2,649
    
    
    $
    1,160
 6. Cash, Cash Equivalents and Short-term Investments
  Unrealized
    
    
    Unrealized
    
    
    Estimated fairCarrying value
    
    
    gains
    
    
    losses
    
    
    value(In thousands)Cash and cash equivalents:Cash
    
    $
    86,876
    
    
    $
    
    
    
    $
    
    
    
    $
    86,876Cash equivalents:Bank time deposits
    
    
    22,167
    
    
    
    
    
    
    
    
    
    
    
    22,167Commercial paper
    
    
    24,889
    
    
    
    
    
    
    
    
    
    
    
    24,889Investment in money market funds
    
    
    29,245
    
    
    
    
    
    
    
    
    
    
    
    29,24576,301
    
    
    
    
    
    
    
    
    
    
    
    76,301163,177
    
    
    
    
    
    
    
    
    
    
    
    163,177
 - 81 -




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##### Table of Contents



Unrealized
    
    
    Unrealized
    
    
    Estimated fairCarrying value
    
    
    gains
    
    
    losses
    
    
    value(In thousands)Short-term investments:Bank time deposits
    
    
    123,810
    
    
    
    
    
    
    
    
    
    
    
    123,810U.S. Treasury and federal agency bonds
    
    
    19,128
    
    
    
    
    
    
    
    (1,146
    )
    
    
    17,982China bank notes
    
    
    31,532
    
    
    
    
    
    
    
    
    
    
    
    31,532Corporate bonds and notes
    
    
    22,507
    
    
    
    
    
    
    
    (357
    )
    
    
    22,150Floating rate notes
    
    
    4,968
    
    
    
    
    
    
    
    (868
    )
    
    
    4,100201,945
    
    
    
    
    
    
    
    (2,371
    )
    
    
    199,574Total cash, cash equivalents and short-term investments
    
    $
    365,122
    
    
    $
    
    
    
    $
    (2,371
    )
    
    $
    362,751
  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 funds
    
    
    697
    
    
    
    
    
    
    
    
    
    
    
    6979,706
    
    
    
    
    
    
    
    
    
    
    
    9,70688,410
    
    
    
    
    
    
    
    
    
    
    
    88,410Short-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
  Less than 12 months
    
    
    12 months or more
    
    
    TotalGross
    
    
    
    
    
    Gross
    
    
    
    
    
    GrossEstimated
    
    
    unrealized
    
    
    Estimated
    
    
    unrealized
    
    
    Estimated
    
    
    unrealizedfair value
    
    
    losses
    
    
    fair value
    
    
    losses
    
    
    fair value
    
    
    losses(In thousands)U.S. Treasury and
federal agency bonds
    
    $
    
    
    
    $
    
    
    
    $
    17,982
    
    
    $
    (1,146
    )
    
    $
    17,982
    
    
    $
    (1,146
    )Corporate bonds and notes
    
    
    
    
    
    
    
    
    
    
    22,150
    
    
    
    (357
    )
    
    
    22,150
    
    
    
    (357
    )Floating rate notes
    
    
    
    
    
    
    
    
    
    
    4,100
    
    
    
    (868
    )
    
    
    4,100
    
    
    
    (868
    )$
    
    
    
    $
    
    
    
    $
    44,232
    
    
    $
    (2,371
    )
    
    $
    44,232
    
    
    $
    (2,371
    )
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##### Table of Contents



GrossEstimated
    
    
    unrealizedfair value
    
    
    losses(In thousands)Short-term investments:Due within one year
    
    $
    175,661
    
    
    $
    (257
    )Due one to five years
    
    
    9,835
    
    
    
    (225
    )Due after five years
    
    
    14,078
    
    
    
    (1,889
    )$
    199,574
    
    
    $
    (2,371
    )
  7. Balance Sheet Components
 December 31,2006
    
    
    2005(In thousands)Accounts receivable, net:Accounts receivable
    
    $
    49,502
    
    
    $
    36,383Allowance for doubtful accounts:Balance at beginning of year
    
    
    (2,443
    )
    
    
    (1,754
    )Charge to expenses
    
    
    (5,044
    )
    
    
    (2,271
    )Write-off, net of recoveries
    
    
    3,016
    
    
    
    1,582Balance at end of year
    
    
    (4,471
    )
    
    
    (2,443
    )$
    45,031
    
    
    $
    33,940Property and equipment, net:Computers and equipment
    
    $
    54,630
    
    
    $
    41,836Leasehold improvements
    
    
    5,107
    
    
    
    4,724Furniture and fixtures
    
    
    2,995
    
    
    
    2,744Other
    
    
    1,313
    
    
    
    21664,045
    
    
    
    49,520Less: Accumulated depreciation and amortization
    
    
    (36,944
    )
    
    
    (27,313
    )$
    27,101
    
    
    $
    22,207Accrued liabilities:Payroll and related expenses
    
    $
    7,478
    
    
    $
    3,786Deferred revenue
    
    
    4,156
    
    
    
    6,601Business taxes
    
    
    4,231
    
    
    
    2,933Sales rebates
    
    
    8,454
    
    
    
    5,623Marketing expenses
    
    
    3,128
    
    
    
    1,687Professional fees
    
    
    1,616
    
    
    
    2,494Content fees
    
    
    6,243
    
    
    
    3,215Payment for Crillion acquisition
    
    
    
    
    
    
    11,266Others
    
    
    6,687
    
    
    
    5,630$
    41,993
    
    
    $
    43,235
 8. Related Party Transactions
 Transactions with joint ventures.
  - 83 -




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##### Table of Contents



9. Income Taxes
   Years ended December 31,2006
    
    
    2005
    
    
    2004(In thousands, except percentage)Loss subject to non China operation
    
    $
    (12,161
    )
    
    $
    (6,349
    )
    
    $
    (7,798
    )Income subject to China operation
    
    
    56,128
    
    
    
    51,874
    
    
    
    77,022Income before taxes
    
    $
    43,967
    
    
    $
    45,525
    
    
    $
    69,224Income tax expenses applicable to China operation
    
    $
    4,051
    
    
    $
    2,410
    
    
    $
    3,228Effective tax rate for China operation
    
    
    7
    %
    
    
    5
    %
    
    
    4
    %
 Cayman Islands
  United States of America
  Years ended December 31,2006
    
    
    2005
    
    
    2004(In thousands)Income (loss) subject to
U.S. operation (including Taiwan
branch)
    
    $
    (798
    )
    
    $
    (446
    )
    
    $
    41Loss subject to other operations
    
    
    (11,363
    )
    
    
    (5,903
    )
    
    
    (7,839
    )Income subject to China operation
    
    
    56,128
    
    
    
    51,874
    
    
    
    77,022Income before taxes
    
    $
    43,967
    
    
    $
    45,525
    
    
    $
    69,224
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##### Table of Contents



December 31,2006
    
    
    2005
    
    
    2004(In thousands)Deferred tax assets:Net operating loss carryforwards
    
    $
    28,461
    
    
    $
    27,848
    
    
    $
    20,817Allowances for doubtful accounts, accruals and other liabilities
    
    
    99
    
    
    
    117
    
    
    
    131Other tax credits
    
    
    346
    
    
    
    346
    
    
    
    549Total deferred tax assets
    
    
    28,906
    
    
    
    28,311
    
    
    
    21,497Less: valuation allowance
    
    
    (28,906
    )
    
    
    (28,311
    )
    
    
    (21,497
    )Deferred tax assets
    
    $
    
    
    
    $
    
    
    
    $
    
 Hong Kong
   December 31,2006
    
    
    2005
    
    
    2004(In thousands)Deferred tax assets:Net operating loss carryforwards
    
    $
    2,290
    
    
    $
    2,013
    
    
    $
    1,798Less: valuation allowance
    
    
    (2,290
    )
    
    
    (2,013
    )
    
    
    (1,798
    )Deferred tax assets
    
    $
    
    
    
    $
    
    
    
    $
    
 China
  Composition of income tax expenses for China operation
  Years ended December 31,2006
    
    
    2005
    
    
    2004(In thousands)Income tax provision
    
    $
    (4,401
    )
    
    $
    (2,671
    )
    
    $
    (3,441
    )Change in deferred tax assets
    
    
    2,948
    
    
    
    2,492
    
    
    
    (1,113
    )Change in valuation allowance
    
    
    (2,598
    )
    
    
    (2,231
    )
    
    
    1,326Income tax expenses
    
    $
    (4,051
    )
    
    $
    (2,410
    )
    
    $
    (3,228
    )
 - 85 -




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##### Table of Contents



Reconciliation of the differences between statutory tax rate and the effective tax rate for China
operation
  Years ended December 31,2006
    
    
    2005
    
    
    2004Statutory EIT rate
    
    
    33
    %
    
    
    33
    %
    
    
    33
    %Tax differential from statutory rate applicable to the subsidiaries and VIEs
    
    
    
    
    
    
    (2
    %)
    
    
    (1
    %)Effect on tax holiday
    
    
    (32
    %)
    
    
    (31
    %)
    
    
    (32
    %)Permanent differences
    
    
    1
    %
    
    
    1
    %
    
    
    2
    %Change in valuation allowance
    
    
    5
    %
    
    
    4
    %
    
    
    2
    %Effective tax rate for China operations
    
    
    7
    %
    
    
    5
    %
    
    
    4
    %
   Years ended December 31,2006
    
    
    2005
    
    
    2004(In thousands, except per share amount)Tax holiday effect
    
    $
    18,323
    
    
    $
    16,032
    
    
    $
    24,297Basic net income per share effect
    
    $
    0.34
    
    
    $
    0.31
    
    
    $
    0.48
  December 31,2006
    
    
    2005
    
    
    2004(In thousands)Deferred tax assets:Net operating loss carryforwards *
    
    $
    1,774
    
    
    $
    964
    
    
    $
    Allowances for doubtful accounts, accruals and other liabilities
    
    
    3,165
    
    
    
    1,358
    
    
    
    260Depreciation
    
    
    1,620
    
    
    
    1,289
    
    
    
    859Total deferred tax assets
    
    
    6,559
    
    
    
    3,611
    
    
    
    1,119Less: valuation allowance
    
    
    (4,829
    )
    
    
    (2,231
    )
    
    
    Deferred tax assets
    
    $
    1,730
    
    
    $
    1,380
    
    
    $
    1,119
 *
    
    The net operating loss carryforwards will expire, if unused, in the years ending December 31,
2008 through 2011. Aggregate net deferred tax assets
  December 31,2006
    
    
    2005
    
    
    2004(In thousands)Short-term deferred tax assets:Allowances for doubtful accounts, accruals and other liabilities
    
    
    
    
    
    
    549
    
    
    
    391Depreciation
    
    
    697
    
    
    
    597
    
    
    
    429Total deferred tax assets
    
    
    697
    
    
    
    1,146
    
    
    
    820
 - 86 -




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##### Table of Contents



December 31,2006
    
    
    2005
    
    
    2004(In thousands)Less: valuation allowance
    
    
    (260
    )
    
    
    (289
    )
    
    
    (131
    )Short-term deferred tax assets
    
    $
    437
    
    
    $
    857
    
    
    $
    689Long-term deferred tax assets included in other assets:Net operating loss carryforwards
    
    $
    32,525
    
    
    $
    30,825
    
    
    $
    22,615Allowances for doubtful accounts, accruals and other liabilities
    
    
    3,264
    
    
    
    926
    
    
    
    Depreciation
    
    
    923
    
    
    
    692
    
    
    
    430Other tax credits
    
    
    346
    
    
    
    346
    
    
    
    549Total deferred tax assets
    
    
    37,058
    
    
    
    32,789
    
    
    
    23,594Less: valuation allowance
    
    
    (35,765
    )
    
    
    (32,266
    )
    
    
    (23,164
    )Long-term deferred tax assets
    
    $
    1,293
    
    
    $
    523
    
    
    $
    430Net deferred tax assets
    
    $
    1,730
    
    
    $
    1,380
    
    
    $
    1,119
 Movement of valuation allowances for deferred tax assets
  Years Ended December 31,2006
    
    
    2005
    
    
    2004(In thousands)Balance at beginning of the year
    
    $
    32,555
    
    
    $
    23,295
    
    
    $
    22,074Provision for the year
    
    
    3,470
    
    
    
    9,260
    
    
    
    2,547Recoveries of deferred tax assets
    
    
    
    
    
    
    
    
    
    
    (1,326
    )Balance at end of the year
    
    $
    36,025
    
    
    $
    32,555
    
    
    $
    23,295
 10. Net Income Per Share
   Years ended December 31,2006
    
    
    2005
    
    
    2004(In thousands, except per share amounts)Basic net income per share calculation:Numerator:Net income used in computing basic net income per share
    
    $
    39,916
    
    
    $
    43,115
    
    
    $
    65,996Denominator:Weighted average ordinary shares outstanding
    
    
    53,696
    
    
    
    52,455
    
    
    
    50,274Ordinary shares to be issued for business acquisition
    
    
    
    
    
    
    30
    
    
    
    Shares used in computing basic net income per share
    
    
    53,696
    
    
    
    52,485
    
    
    
    50,274Basic net income per share
    
    $
    0.74
    
    
    $
    0.82
    
    
    $
    1.33Diluted net income per share calculation:Numerator:Net income
    
    $
    39,916
    
    
    $
    43,115
    
    
    $
    65,996Amortization of convertible debt issuance cost
    
    
    685
    
    
    
    685
    
    
    
    685Net income used in computing diluted net income per share
    
    $
    40,601
    
    
    $
    43,800
    
    
    $
    66,681
 - 87 -




---



##### Table of Contents



Years ended December 31,2006
    
    
    2005
    
    
    2004(In thousands, except per share amounts)Denominator:Weighted average ordinary shares outstanding
    
    
    53,696
    
    
    
    52,455
    
    
    
    50,274Weighted average ordinary shares equivalents:Stock options
    
    
    967
    
    
    
    2,335
    
    
    
    4,053Convertible debt
    
    
    3,877
    
    
    
    3,877
    
    
    
    3,877Others
    
    
    9
    
    
    
    125
    
    
    
    Shares used in computing diluted net income per share
    
    
    58,549
    
    
    
    58,792
    
    
    
    58,204Diluted net income per share
    
    $
    0.69
    
    
    $
    0.75
    
    
    $
    1.15
 11. Employee Benefit Plans
 401(k) Savings Plan
  China Contribution Plan
  12. Profit Appropriation
   - 88 -




---



##### Table of Contents



13. Shareholders Equity
 Stockholder Rights Plan
   1999 Stock Plan
   1999 Executive Stock Option Plan
  - 89 -




---



##### Table of Contents



1999 Directors Stock Option Plan
  Stock Compensation
   Years
ended December 31,2006
    
    2005
    
    2004Expected term (in years)
    
    3.8-5.0
    
    1.0-4.0
    
    1.0-4.0Expected volatility
    
    68%-71%
    
    61%-87%
    
    88%-91%Risk-free interest rate
    
    5.0%-5.2%
    
    2.93%-4.09%
    
    1.19%-3.32%Expected dividend yield
    
    0
    
    0
    
    0
  - 90 -




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##### Table of Contents



Year endedDecember 31, 2006(in thousands)Costs of revenues
    
    $
    1,743Sales and marketing
    
    
    1,511Product development
    
    
    1,808General and administrative
    
    
    4,412Total
    
    $
    9,474
  Years ended December 31,2005
    
    
    2004(in thousands, except per share amount)Net income:As reported
    
    $
    43,115
    
    
    $
    65,996Deduct: Employee stock
purchase plan related
compensation expenses
determined under fair
value based method
    
    
    (73
    )
    
    
    (135
    )Deduct: Stock-based
employee compensation
expenses determined under
fair value based method
    
    
    (9,332
    )
    
    
    (11,063
    )Pro forma
    
    $
    33,710
    
    
    $
    54,798Basic net income per share:As reported
    
    $
    0.82
    
    
    $
    1.33Pro forma
    
    $
    0.64
    
    
    $
    1.09Diluted net income per share:As reported
    
    $
    0.75
    
    
    $
    1.15Pro forma
    
    $
    0.59
    
    
    $
    0.95
 General Stock Option Information
  Options
    
    
    
    
    
    
    
    
    
    
    Weighted AverageAvailable
    
    
    Options
    
    
    Weighted Average
    
    
    Remaining
    
    
    Aggregatefor Grant
    
    
    Outstanding
    
    
    Exercise Price
    
    
    Contractual Life
    
    
    Intrinsic Value(in thousands)
    
    
    (in thousands)
    
    
    
    
    
    
    (in years)
    
    
    (in thousands)December 31, 2003
    
    
    1,957
    
    
    
    6,270
    
    
    $
    7.00Additional approved
    
    
    750
    
    
    
    N/A
    
    
    
    N/AGranted
    
    
    (1,644
    )
    
    
    1,644
    
    
    $
    22.85Exercised
    
    
    N/A
    
    
    
    (2,242
    )
    
    $
    6.90Cancelled/expired/forfeited
    
    
    254
    
    
    
    (254
    )
    
    $
    11.98December 31, 2004
    
    
    1,317
    
    
    
    5,418
    
    
    $
    11.62Additional approved
    
    
    1,125
    
    
    
    N/A
    
    
    
    N/AGranted
    
    
    (146
    )
    
    
    146
    
    
    $
    26.38Exercised
    
    
    N/A
    
    
    
    (1,569
    )
    
    $
    4.30Cancelled/expired/forfeited
    
    
    385
    
    
    
    (385
    )
    
    $
    15.59December 31, 2005
    
    
    2,681
    
    
    
    3,610
    
    
    $
    14.97Granted
    
    
    (2,100
    )
    
    
    2,100
    
    
    $
    23.90Exercised
    
    
    N/A
    
    
    
    (896
    )
    
    $
    11.14Cancelled/expired/forfeited
    
    
    722
    
    
    
    (722
    )
    
    $
    11.84
 - 91 -




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##### Table of Contents



Options
    
    
    
    
    
    
    
    
    
    
    Weighted AverageAvailable
    
    
    Options
    
    
    Weighted Average
    
    
    Remaining
    
    
    Aggregatefor Grant
    
    
    Outstanding
    
    
    Exercise Price
    
    
    Contractual Life
    
    
    Intrinsic Value(in thousands)
    
    
    (in thousands)
    
    
    
    
    
    
    (in years)
    
    
    (in thousands)December 31, 2006
    
    
    1,303
    
    
    
    4,092
    
    
    $
    20.95
    
    
    
    6.14
    
    
    $
    32,668Vested and expected to vest as of
December 31, 2006
    
    
    
    
    
    
    3,898
    
    
    $
    20.82
    
    
    
    6.16
    
    
    $
    31,658Exercisable as of December 31, 2006
    
    
    
    
    
    
    1,882
    
    
    $
    18.56
    
    
    
    6.38
    
    
    $
    20,015
     Weighted Average
    
    Weighted
    
    
    
    
    
    WeightedOptions
    
    Remaining
    
    Average
    
    Options
    
    AverageRange of Exercise prices
    
    Outstanding
    
    Contractual Life
    
    Exercise Price
    
    Exercisable
    
    Exercise Price(in thousands)
    
    (in years)
    
    
    
    
    
    (in thousands)$0.16  $1.88
    
    
    215
    
    
    
    4.81
    
    
    $
    1.58
    
    
    
    215
    
    
    $
    1.58$1.89  $12.98
    
    
    510
    
    
    
    5.69
    
    
    $
    11.05
    
    
    
    425
    
    
    $
    10.67$12.99  $20.86
    
    
    745
    
    
    
    7.04
    
    
    $
    19.90
    
    
    
    407
    
    
    $
    19.43$20.87  $36.40
    
    
    2,622
    
    
    
    6.08
    
    
    $
    24.75
    
    
    
    835
    
    
    $
    26.544,092
    
    
    
    6.14
    
    
    $
    20.95
    
    
    
    1,882
    
    
    $
    18.56
 Employee Stock Purchase Plan
  14. Segment Information
  - 92 -




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##### Table of Contents



Years ended December 31,2006
    
    
    2005
    
    
    2004(In thousands, except percentages)Net revenues:Advertising
    
    $
    120,067
    
    
    $
    84,999
    
    
    $
    65,417MVAS
    
    
    86,257
    
    
    
    98,070
    
    
    
    123,954Others
    
    
    6,530
    
    
    
    10,483
    
    
    
    10,616$
    212,854
    
    
    $
    193,552
    
    
    $
    199,987Costs of revenues:Advertising
    
    $
    42,529
    
    
    $
    27,627
    
    
    $
    22,187MVAS
    
    
    34,255
    
    
    
    33,814
    
    
    
    38,277Others
    
    
    2,626
    
    
    
    1,666
    
    
    
    1,147$
    79,410
    
    
    $
    63,107
    
    
    $
    61,611Gross profit margins:Advertising
    
    
    65
    %
    
    
    67
    %
    
    
    66
    %MVAS
    
    
    60
    %
    
    
    66
    %
    
    
    69
    %Others
    
    
    60
    %
    
    
    84
    %
    
    
    89
    %Overall
    
    
    63
    %
    
    
    67
    %
    
    
    69
    %
  China
    
    U.S.
    
    Hong Kong
    
    Taiwan
    
    Total(In thousands)Year ended and as of December 31, 2006:Revenues
    
    $
    209,200
    
    
    $
    1,942
    
    
    $
    1,395
    
    
    $
    317
    
    
    $
    212,854Long-lived assets
    
    
    25,726
    
    
    
    157
    
    
    
    1,147
    
    
    
    71
    
    
    
    27,101Year 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
    
    
    
    16,152
  15. Certain Risks and Concentrations
   - 93 -




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##### Table of Contents



Years ended December 31,As a percentage of total net revenues
    
    2006
    
    2005
    
    2004MVAS
revenues billed via China Mobile
    
    
    30
    %
    
    
    46
    %
    
    
    54
    %Revenues from SMS product line
    
    
    26
    %
    
    
    37
    %
    
    
    52
    %
 December 31,As a percentage of total accounts receivables
    
    2006
    
    2005Receivables from China Mobile
    
    
    25
    %
    
    
    26
    %
     - 94 -




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##### Table of Contents



16. Convertible Debt
   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
    
    $
    1,637
    
    
    $
    900
    
    
    $
    737
    
    
    $
    
    
    
    $
    
  Less than one
    
    One to
    
    Three to
    
    More thanTotal
    
    year
    
    three years
    
    five years
    
    five years(In thousands)Purchase commitments
    
    $
    22,350
    
    
    $
    15,754
    
    
    $
    6,185
    
    
    $
    201
    
    
    $
    210
 - 95 -




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##### Table of Contents



Supplementary Financial Data (unaudited)
 
 Quarterly financial result
  Quarterly results for the year ended December 31, 2006Dec. 31,
    
    Sept. 30,
    
    June 30,
    
    March 31,2006
    
    2006
    
    2006
    
    2006(In thousands, except per share amounts)Net revenues
    
    $
    56,405
    
    
    $
    56,059
    
    
    $
    53,678
    
    
    $
    46,712Gross profit
    
    $
    34,748
    
    
    $
    36,011
    
    
    $
    34,018
    
    
    $
    28,667Net income
    
    $
    11,722
    
    
    $
    10,719
    
    
    $
    10,439
    
    
    $
    7,036Basic net income per share
    
    $
    0.22
    
    
    $
    0.20
    
    
    $
    0.19
    
    
    $
    0.13Shares used in computing
basic net income per share
    
    
    54,103
    
    
    
    53,690
    
    
    
    53,554
    
    
    
    53,438Diluted net income per share
    
    $
    0.20
    
    
    $
    0.19
    
    
    $
    0.18
    
    
    $
    0.12Shares used in computing
diluted net income per
share
    
    
    58,780
    
    
    
    58,419
    
    
    
    58,444
    
    
    
    58,617
 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
 - 96 -




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##### Table of Contents



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
  
 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
  - 97 -




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##### Table of Contents



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 Executive Officer  - 98 -




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##### Table of Contents



POWER OF ATTORNEY
   Signature
    
    Title
    
    Date/s/ CHARLES CHAO
    
    President, Chief Executive Officer and Director
    
    March 1, 2007Charles Chao
    
    (Principal Executive Officer)/s/ HERMAN YU
    
    Acting Chief Financial Officer
    
    March 1, 2007Herman Yu
    
    (Principal Financial and Accounting Officer)/s/ YONGJI DUANYongji Duan
    
    Chairman of the Board
    
    March 1, 2007/s/ YAN WANGYan Wang
    
    Vice Chairman of the Board
    
    March 1, 2007/s/ PEHONG CHENPehong Chen
    
    Director
    
    March 1, 2007/s/ XIAOTAO CHENXiaotao Chen
    
    Director
    
    March 1, 2007/s/ HURST LINHurst Lin
    
    Director
    
    March 1, 2007/s/ LIP-BU TANLip-Bu Tan
    
    Director
    
    March 1, 2007/s/ TER-FUNG TSAOTer-Fung Tsao
    
    Director
    
    March 1, 2007/s/ YICHEN ZHANGYichen Zhang
    
    Director
    
    March 1, 2007/s/ SONGYI ZHANGSongYi Zhang
    
    Director
    
    March 1, 2007
 - 99 -




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##### 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).




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##### Table of Contents



ExhibitNumber
    
    Description10.1#
    
    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).10.2#
    
    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 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).10.7#
    
    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).10.8#
    
    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).10.9
    
    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).10.10
    
    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).10.11
    
    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).10.12
    
    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).10.13
    
    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).




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##### Table of Contents



ExhibitNumber
    
    Description10.14
    
    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).10.15
    
    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).10.16
    
    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).10.17
    
    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).10.18
    
    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).10.19
    
    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).10.20
    
    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).10.21
    
    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).10.22
    
    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).10.23
    
    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).10.24
    
    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).10.25
    
    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).




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##### Table of Contents



ExhibitNumber
    
    Description10.26
    
    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).10.27
    
    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).10.28
    
    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).10.29
    
    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).10.30
    
    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).10.31
    
    Translation of Technical Services Agreement dated January 1, 2005 between
SINA.com Technology (China) Co., Ltd. and Beijing SINA Infinity
Advertising Co., Ltd. (Filed as Exhibit 10.48 to the Companys Report on
Form 10-K for the year ended December 31, 2005, and incorporated herein
by reference).10.32
    
    Translation of Technical Services Agreement dated January 1, 2005 between
SINA.com Technology (China) Co., Ltd. and Beijing SINA Internet
Information Services Co., Ltd. (Filed as Exhibit 10.49 to the Companys
Report on Form 10-K for the year ended December 31, 2005, and
incorporated herein by reference).10.33#
    
    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).10.34#
    
    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).10.35#
    
    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).10.36#
    
    Employment Agreement dated July 31, 2006 between Charles Guowei Chao and
SINA Corporation (Filed as Exhibit 10.1 to the Companys Report on Form
10-Q for the three month period ended September 30, 2006, and
incorporated herein by reference).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).




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##### Table of Contents



ExhibitNumber
    
    Description31.1*
    
    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.