China MediaExpress Holdings Inc

(CCME) Figures in Thousands

February 6, 2011
CCME 2006 2007 2008 2009 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 TTM
Income Statement 3 2 1 0 3 2 1 0
Revenue $ 4,035.0 $ 25,837.0 $ 62,999.0 $ 95,934.0 $ 18,769.0 $ 19,092.0 $ 26,122.0 $ 31,951.0 $ 44,525.0 $ 53,511.0 $ 56,956.0 $ 186,943.0
% change from prev year 540.3% 143.8% 52.3% 1.7% 36.8% 22.3% 39.4% 20.2% 6.4% 94.9%
Cost of Revenues $ 1,446.0 $ 13,164.0 $ 25,065.0 $ 32,937.0 $ 7,133.0 $ 7,229.0 $ 8,630.0 $ 9,945.0 $ 17,931.0 $ 11,398.0 $ 13,198.0 $ 52,472.0
COGS (%) 35.8% 51.0% 39.8% 34.3% 38.0% 37.9% 33.0% 31.1% 40.3% 21.3% 23.2% 28.1%
Gross Profit $ 2,589.0 $ 12,673.0 $ 37,934.0 $ 62,997.0 $ 11,636.0 $ 11,863.0 $ 17,492.0 $ 22,006.0 $ 26,594.0 $ 42,113.0 $ 43,758.0 $ 134,471.0
Gross Profit (%) 64.2% 49.0% 60.2% 65.7% 62.0% 62.1% 67.0% 68.9% 59.7% 78.7% 76.8% 71.9%

Operating Expenses
Selling, General & Admin. Expenses $ 916.0 $ 1,657.0 $ 2,813.0 $ 6,354.0 $ 1,101.0 $ 778.0 $ 1,959.0 $ 2,516.0 $ 2,353.0 $ 3,815.0 $ 2,509.0 $ 11,193.0
SG&A (%) 22.7% 6.4% 4.5% 6.6% 5.9% 4.1% 7.5% 7.9% 5.3% 7.1% 4.4% 6.0%
Depreciation & Amortization $ 365.0 $ 1,591.0 $ 2,835.0 $ 3,183.0 $ 760.0 $ 783.0 $ 808.0 $ 875.0 $ 930.0 $ 979.0 $ 1,033.0 $ 3,817.0
D&A (%) 9.0% 6.2% 4.5% 3.3% 4.0% 4.1% 3.1% 2.7% 2.1% 1.8% 1.8% 2.0%
Operating Income $ 1,673.0 $ 11,016.0 $ 35,121.0 $ 56,643.0 $ 10,535.0 $ 11,085.0 $ 15,533.0 $ 19,490.0 $ 24,241.0 $ 38,298.0 $ 41,249.0 $ 123,278.0
Operating Income (%) 41.5% 42.6% 55.7% 59.0% 56.1% 58.1% 59.5% 61.0% 54.4% 71.6% 72.4% 65.9%

Other Income and Expense

Interest Expense $ -
Interest Income $ 8.0 $ 24.0 $ 100.0 $ 113.0 $ 22.0 $ 21.0 $ 27.0 $ 43.0 $ 61.0 $ 84.0 $ 106.0 $ 294.0
Earnings Before Taxes $ 1,681.0 $ 11,040.0 $ 35,221.0 $ 56,756.0 $ 10,557.0 $ 11,106.0 $ 15,560.0 $ 19,533.0 $ 24,302.0 $ 38,382.0 $ 41,355.0 $ 123,572.0
Income Taxes/(Credit) $ 689.0 $ 4,073.0 $ 8,854.0 $ 15,045.0 $ 3,102.0 $ 2,825.0 $ 3,896.0 $ 5,222.0 $ 6,160.0 $ 9,878.0 $ 10,224.0 $ 31,484.0
Tax Rate % 41.0% 36.9% 25.1% 26.5% 29.4% 25.4% 25.0% 26.7% 25.3% 25.7% 24.7% 25.5%
Earnings After Taxes $ 992.0 $ 6,967.0 $ 26,367.0 $ 41,711.0 $ 7,455.0 $ 8,281.0 $ 11,664.0 $ 14,311.0 $ 18,142.0 $ 28,504.0 $ 31,131.0 $ 92,088.0
Net Income From Discontinued Operations
Net Income From Total Operations $ 992.0 $ 6,967.0 $ 26,367.0 $ 41,711.0 $ 7,455.0 $ 8,281.0 $ 11,664.0 $ 14,311.0 $ 18,142.0 $ 28,504.0 $ 31,131.0 $ 92,088.0
Net Income (%) 24.6% 27.0% 41.9% 43.5% 39.7% 43.4% 44.7% 44.8% 40.7% 53.3% 54.7% 49.3%

Shares and EPS

Total Basic EPS $ - $ 0.33 $ 1.26 $ 1.93 $ 0.36 $ 0.40 $ 0.56 $ 0.61 $ 0.28 $ 0.86 $ 0.92 $ 2.67
Fully Diluted EPS $ - $ 0.33 $ 1.26 $ 1.81 $ 0.36 $ 0.40 $ 0.56 $ 0.68 $ 0.27 $ 0.80 $ 0.81 $ 2.56
Basic Shares Outstanding NA 20,915.0 20,915.0 21,588.0 20,915.0 20,915.0 20,915.0 23,542.0 31,275.0 33,290.0 33,823.0 33,823.0
Diluted Shares Outstanding NA 20,915.0 20,915.0 21,588.0 20,915.0 20,915.0 20,915.0 29,137.0 33,500.0 35,831.0 38,430.0 38,430.0

Balance Sheet MRQ

Assets
Cash & Equivalents $ 1,485.0 $ 6,364.0 $ 29,997.0 $ 57,151.0 $ 20,416.0 $ 29,437.0 $ 40,855.0 $ 57,151.0 $ 114,396.0 $ 139,321.0 $ 169,947.0 $ 169,947.0
Short-Term Investments $ -
Net Receivables $ 186.0 $ 2,716.0 $ 6,065.0 $ 12,569.0 $ 7,288.0 $ 7,412.0 $ 11,293.0 $ 12,569.0 $ 18,805.0 $ 20,664.0 $ 20,337.0 $ 20,337.0
% change from prev year 1360.2% 123.3% 107.2% 1.7% 52.4% 11.3% 49.6% 9.9% -1.6% -1.6%
Other Current Assets $ - $ - $ 59.0 $ 251.0 $ 5,898.0 $ 251.0 $ 1,929.0 $ 3,372.0 $ 3,766.0 $ 3,766.0
Total Current Assets $ 1,674.0 $ 9,093.0 $ 36,121.0 $ 69,971.0 $ 27,739.0 $ 36,885.0 $ 52,174.0 $ 69,971.0 $ 135,130.0 $ 163,357.0 $ 194,050.0 $ 194,050.0
Fixed Assets $ 3,269.0 $ 8,848.0 $ 11,417.0 $ 11,065.0 $ 10,910.0 $ 10,137.0 $ 10,864.0 $ 11,065.0 $ 11,525.0 $ 12,018.0 $ 11,734.0 $ 11,734.0
Intangible Assets $ -
Other Long-Term Assets $ 7,051.0 $ 10,093.0 $ 12,060.0 $ 12,060.0
Total Long-Term Assets $ -
Total Assets $ 4,943.0 $ 18,707.0 $ 49,116.0 $ 82,979.0 $ 40,309.0 $ 48,775.0 $ 64,948.0 $ 82,979.0 $ 157,311.0 $ 188,655.0 $ 220,927.0 $ 220,927.0

Liabilities & Stockholders' Equity

Accounts payable $ 87.0 $ 769.0 $ 2,637.0 $ 4,250.0 $ 1,782.0 $ 180.0 $ 2,030.0 $ 4,250.0 $ 4,150.0 $ 5,089.0 $ 4,580.0 $ 4,580.0
Short-Term Debt $ -
Taxes Payable $ 341.0 $ 1,854.0 $ 3,072.0 $ 5,765.0 $ 3,700.0 $ 3,426.0 $ 4,567.0 $ 5,765.0 $ 8,333.0 $ 9,980.0 $ 10,529.0 $ 10.5
Accrued Liabilities $ 248.0 $ 714.0 $ 1,301.0 $ 5,278.0 $ 1,380.0 $ 1,378.0 $ 2,672.0 $ 5,278.0 $ 6,801.0 $ 8,862.0 $ 9,718.0 $ 9.7
Other Current Liabilities $ 2,654.0 $ 4,690.0 $ 798.0 $ 13,315.0 $ 1,974.0 $ 2,043.0 $ 3,336.0 $ 13,315.0 $ 3,364.0 $ 3,382.0 $ 3,498.0 $ 3,498.0

Total Current Liabilities $ 3,330.0 $ 8,027.0 $ 7,808.0 $ 28,608.0 $ 8,836.0 $ 8,647.0 $ 12,605.0 $ 28,608.0 $ 22,648.0 $ 27,313.0 $ 28,325.0 $ 28,325.0
Long-Term Debt $ -
Other Liabilities $ -
Deferred Income Taxes $ 1,578.0 $ 1,943.0 $ 1,943.0 $ 3,605.0 $ 3,187.0 $ 3,083.0 $ 3,083.0
Total Long-Term Liabilities $ 6,312.0 $ 6,639.0 $ 6,642.0 $ 7,013.0 $ 7,538.0 $ 6,639.0 $ 12,610.0 $ 10,392.0 $ 9,286.0 $ 9,286.0

Total Liabilities $ 3,330.0 $ 11,090.0 $ 14,120.0 $ 35,247.0 $ 15,478.0 $ 15,660.0 $ 20,143.0 $ 35,247.0 $ 35,258.0 $ 37,705.0 $ 37,611.0 $ 37,611.0
Total Equity $ 1,613.0 $ 7,617.0 $ 34,996.0 $ 47,732.0 $ 24,831.0 $ 33,115.0 $ 44,805.0 $ 47,732.0 $ 122,053.0 $ 150,950.0 $ 183,316.0 $ 183,316.0
Total Liabilities & Equity $ 4,943.0 $ 18,707.0 $ 49,116.0 $ 82,979.0 $ 40,309.0 $ 48,775.0 $ 64,948.0 $ 82,979.0 $ 157,311.0 $ 188,655.0 $ 220,927.0 $ 220,927.0

Cash Flows Statement

Cash Flows From Operating Activities
Net Income $ 6,967.0 $ 26,367.0 $ 41,711.0 $ 7,455.0 $ 8,281.0 $ 11,664.0 $ 14,311.0 $ 18,142.0 $ 28,504.0 $ 31,131.0 NA
Depreciation & Amortization $ 1,621.0 $ 2,875.0 $ 3,644.0 $ 760.0 $ 783.0 $ 808.0 $ 1,293.0 $ 1,072.0 $ 1,599.0 $ 1,846.0 $ 5,810.0
Deferred Taxes $ (766.0) $ (812.0) $ (367.0) $ (82.0) $ (93.0) $ (157.0) $ (35.0) $ (1,660.0) $ 432.0 $ 143.0 NA
Other $ 6,813.0 $ 2,315.0 $ 7,778.0 $ 1,585.0 $ 350.0 $ 3,738.0 $ 2,105.0 $ 1,637.0 $ (2,850.0) $ (3,028.0) NA
Net Cash From Operating Activities $ 12,105.0 $ 27,396.0 $ 46,244.0 $ 8,495.0 $ 9,197.0 $ 12,172.0 $ 16,380.0 $ 12,946.0 $ 25,264.0 $ 30,753.0 $ 85,343.0

Cash Flows From Investing Activities

Capital Expenditures $ (7,200.0) $ (5,444.0) $ (3,292.0) $ (253.0) $ (10.0) $ (1,535.0) $ (1,494.0) $ (1,532.0) $ (2,092.0) $ (1,562.0) NA
Others $ 606.0 $ 1,228.0 $ 1,408.0 $ (203.0) $ (169.0) $ 755.0 $ 1,025.0 $ (343.0) $ 1,447.0 $ 472.0 NA
Net Cash From Investing Activities $ (6,594.0) $ (4,216.0) $ (1,884.0) $ (456.0) $ (179.0) $ (780.0) $ (469.0) $ (1,875.0) $ (645.0) $ (1,090.0) NA

Cash Flows From Financing Activities

Cash from Financing $ (1,315.0) $ - $ (17,162.0) $ (17,555.0) - - $ 393.0 $ 46,143.0 - - NA
Cash at Beginning of the Period $ 1,485.0 $ 6,364.0 $ 29,997.0 $ 29,997.0 - - - $ 57,151.0 $ 114,396.0 $ 139,321.0 NA
Cash at End of the Period $ 6,364.0 $ 29,997.0 $ 57,151.0 $ 20,416.0 $ 9,021.0 $ 11,418.0 $ 16,296.0 $ 114,396.0 $ 139,321.0 $ 169,947.0 NA
Change in Cash $ 4,879.0 $ 23,633.0 $ 27,154.0 $ (9,581.0) $ 9,021.0 $ 11,418.0 $ 16,296.0 $ 57,245.0 $ 24,925.0 $ 30,626.0 NA

Free Cash Flow

Cash from Operations $ - $ 12,105.0 $ 27,396.0 $ 46,244.0 $ 8,495.0 $ 9,197.0 $ 12,172.0 $ 16,380.0 $ 12,946.0 $ 25,264.0 $ 30,753.0 NA
Cap Ex $ - $ (7,200.0) $ (5,444.0) $ (3,292.0) $ (253.0) $ (10.0) $ (1,535.0) $ (1,494.0) $ (1,532.0) $ (2,092.0) $ (1,562.0) NA
Free Cash Flow $ - $ 4,905.0 $ 21,952.0 $ 42,952.0 $ 8,242.0 $ 9,187.0 $ 10,637.0 $ 14,886.0 $ 11,414.0 $ 23,172.0 $ 29,191.0 NA
Owner Earnings FCF $ - $ 6,636.0 $ 25,182.0 $ 62,889.0 $ 7,962.0 $ 7,645.0 $ 23,859.0 $ 21,938.0 $ 15,545.0 $ 32,270.0 $ 31,089.0 NA
User Defined $ 6,636.0 $ 25,182.0 $ 62,889.0 $ 7,962.0 $ 7,645.0 $ 23,859.0 $ 21,938.0 $ 15,545.0 $ 32,270.0 $ 31,089.0
China MediaExpress Holdings Inc
(CCME)
February 6, 2011
2006 2007 2008 2009 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 TTM
Income Statement
Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of Revenues 35.8% 51.0% 39.8% 34.3% 38.0% 37.9% 33.0% 31.1% 40.3% 21.3% 23.2% 28.1%

Gross Profit 64.2% 49.0% 60.2% 65.7% 62.0% 62.1% 67.0% 68.9% 59.7% 78.7% 76.8% 71.9%

Operating Expenses
Selling, General & Admin. Expenses 22.7% 6.4% 4.5% 6.6% 5.9% 4.1% 7.5% 7.9% 5.3% 7.1% 4.4% 6.0%
Depreciation & Amortization 9.0% 6.2% 4.5% 3.3% 4.0% 4.1% 3.1% 2.7% 2.1% 1.8% 1.8% 2.0%

Operating Income 41.5% 42.6% 55.7% 59.0% 56.1% 58.1% 59.5% 61.0% 54.4% 71.6% 72.4% 65.9%

Other Income and Expense

Interest Income 0.2% 0.1% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.2% 0.2% 0.2%
Earnings Before Taxes 41.7% 42.7% 55.9% 59.2% 56.2% 58.2% 59.6% 61.1% 54.6% 71.7% 72.6% 66.1%
Income Taxes/(Credit) 17.1% 15.8% 14.1% 15.7% 16.5% 14.8% 14.9% 16.3% 13.8% 18.5% 18.0% 16.8%
Earnings After Taxes 24.6% 27.0% 41.9% 43.5% 39.7% 43.4% 44.7% 44.8% 40.7% 53.3% 54.7% 49.3%

Net Income From Total Operations 24.6% 27.0% 41.9% 43.5% 39.7% 43.4% 44.7% 44.8% 40.7% 53.3% 54.7% 49.3%

Balance Sheet MRQ

Assets
Cash & Equivalents 30.0% 34.0% 61.1% 68.9% 50.6% 60.4% 62.9% 68.9% 72.7% 73.8% 76.9% 76.9%
Short-Term Investments 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Net Receivables 3.8% 14.5% 12.3% 15.1% 18.1% 15.2% 17.4% 15.1% 12.0% 11.0% 9.2% 9.2%
Other Current Assets 0.0% 0.0% 0.1% 0.3% 0.0% 0.0% 9.1% 0.3% 1.2% 1.8% 1.7% 1.7%
Total Current Assets 33.9% 48.6% 73.5% 84.3% 68.8% 75.6% 80.3% 84.3% 85.9% 86.6% 87.8% 87.8%
Fixed Assets 66.1% 47.3% 23.2% 13.3% 27.1% 20.8% 16.7% 13.3% 7.3% 6.4% 5.3% 5.3%
Intangible Assets 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other Long-Term Assets 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 4.5% 5.3% 5.5% 5.5%
Total Long-Term Assets 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Total Assets 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Liabilities & Stockholders' Equity

Accounts payable 1.8% 4.1% 5.4% 5.1% 4.4% 0.4% 3.1% 5.1% 2.6% 2.7% 2.1% 2.1%
Short-Term Debt 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Taxes Payable 6.9% 9.9% 6.3% 6.9% 9.2% 7.0% 7.0% 6.9% 5.3% 5.3% 4.8% 0.0%
Accrued Liabilities 5.0% 3.8% 2.6% 6.4% 3.4% 2.8% 4.1% 6.4% 4.3% 4.7% 4.4% 0.0%
Other Current Liabilities 53.7% 25.1% 1.6% 16.0% 4.9% 4.2% 5.1% 16.0% 2.1% 1.8% 1.6% 1.6%

Total Current Liabilities 67.4% 42.9% 15.9% 34.5% 21.9% 17.7% 19.4% 34.5% 14.4% 14.5% 12.8% 12.8%
Long-Term Debt 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other Liabilities 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Deferred Income Taxes 0.0% 0.0% 3.2% 2.3% 0.0% 0.0% 0.0% 2.3% 2.3% 1.7% 1.4% 1.4%
Total Long-Term Liabilities 0.0% 0.0% 12.9% 8.0% 16.5% 14.4% 11.6% 8.0% 8.0% 5.5% 4.2% 4.2%

Total Liabilities 67.4% 59.3% 28.7% 42.5% 38.4% 32.1% 31.0% 42.5% 22.4% 20.0% 17.0% 17.0%
Total Equity 32.6% 40.7% 71.3% 57.5% 61.6% 67.9% 69.0% 57.5% 77.6% 80.0% 83.0% 83.0%

Total Liabilities & Equity 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Cash Flows Statement TTM

Cash Flows From Operating Activities
Net Income 0.0% 57.6% 96.2% 90.2% 87.8% 90.0% 95.8% 87.4% 140.1% 112.8% 101.2% NA
Depreciation & Amortization 0.0% 13.4% 10.5% 7.9% 8.9% 8.5% 6.6% 7.9% 8.3% 6.3% 6.0% NA
Deferred Taxes 0.0% -6.3% -3.0% -0.8% -1.0% -1.0% -1.3% -0.2% -12.8% 1.7% 0.5% NA
Other 0.0% 56.3% 8.5% 16.8% 18.7% 3.8% 30.7% 12.9% 12.6% -11.3% -9.8% NA

Net Cash From Operating Activities 0.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% NA

Cash Flows From Investing Activities

Capital Expenditures 0.0% 109.2% 129.1% 174.7% 55.5% 5.6% 196.8% 318.6% 81.7% 324.3% 143.3% NA

Net Cash From Investing Activities 0.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% NA
China MediaExpress Holdings Inc
(CCME)
February 6, 2011
2006 2007 2008 2009 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10
Financial Statistics & Ratios
Profitability Ratios
P/E 0.00 21.61 6.06 5.90 21.19 19.38 13.96 15.59 51.07 10.96 12.59
P/S 0.00 5.77 2.53 2.40 8.50 8.49 6.26 9.67 10.38 5.87 6.88
P/BV 0.00 19.58 4.56 4.83 6.43 4.89 3.65 6.47 3.78 2.08 2.14
P/Tang BV 0.00 19.58 4.56 4.83 6.43 4.89 3.65 6.47 3.78 2.08 2.14
P/CF 0.00 43.70 6.56 5.55 20.47 18.33 14.74 22.34 26.18 11.38 12.79
P/FCF 0.00 22.47 6.34 3.67 20.04 21.20 6.86 14.08 29.72 9.74 12.61
ROE 61.5% 91.5% 75.3% 87.4% 30.0% 25.0% 26.0% 30.0% 14.9% 18.9% 17.0%
ROA 20.1% 37.2% 53.7% 50.3% 18.5% 17.0% 18.0% 17.2% 11.5% 15.1% 14.1%
FCF/Sales 0.0% 25.7% 40.0% 65.6% 42.4% 40.0% 91.3% 68.7% 34.9% 60.3% 54.6%
CROIC using FCF 0.0% 45.9% 53.1% 79.0% 26.2% 22.9% 20.3% 27.4% 8.5% 14.4% 15.2%
CROIC using Owner Earnings 0.0% 62.1% 61.0% 115.7% 25.3% 19.1% 45.6% 40.3% 11.5% 20.0% 16.1%

Solvency
Quick Ratio 0.50 1.13 4.63 2.45 3.14 4.27 4.14 2.45 5.97 5.98 6.85
Current Ratio 0.50 1.13 4.63 2.45 3.14 4.27 4.14 2.45 5.97 5.98 6.85
Total Debt/Equity Ratio 2.06 1.46 0.40 0.74 0.62 0.47 0.45 0.74 0.29 0.25 0.21

Efficiency Ratios
Asset Turnover 0.82 1.38 1.28 1.16 0.47 0.39 0.40 0.39 0.28 0.28 0.26
Cash % of Revenue 36.8% 24.6% 47.6% 59.6% 108.8% 154.2% 156.4% 178.9% 256.9% 260.4% 298.4%
Receivables % of Revenue 4.6% 10.5% 9.6% 13.1% 38.8% 38.8% 43.2% 39.3% 42.2% 38.6% 35.7%
SG&A % of Revenue 22.7% 6.4% 4.5% 6.6% 5.9% 4.1% 7.5% 7.9% 5.3% 7.1% 4.4%

Liquidity Ratios
Receivables Turnover 10.67 4.80 6.01 4.48 1.02 1.13 1.25 1.20 1.16 1.44 1.52
Days Sales Outstanding 16.83 38.37 35.24 47.82 35.34 35.33 39.34 35.80 38.43 35.14 32.49
Inventory Turnover 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Capital Structure Ratios

Total Debt % of Total Assets 67.4% 59.3% 28.7% 42.5% 38.4% 32.1% 31.0% 42.5% 22.4% 20.0% 17.0%
Working Capital % of Price 0.0% 0.7% 17.7% 17.9% 11.8% 17.4% 24.2% 13.4% 24.3% 43.3% 42.3%
China MediaExpress Holdings Inc
(CCME)
February 6, 2011

Piotroski Score
A discrete score between 0-9 which reflects nine criteria used to determine the strength of a firm's financial position. The Piotroski score is used to determine the best value stocks, nine being the
best. The score was named after Chicago Accounting Professor, Joseph Piotroski who devised the scale according to specific criteria found in the financial statements. For every criteria (below) that
is met the company is given one point, if it is not met, then no points are awarded. The points are then added up to determine the best value stocks.

Profitability
* Positive return on assets in the current year (1 point)
* Positive operating cash flow in the current year (1 point)
* Higher return on assets (ROA) in the current period compared to the ROA in the previous year (1 point)
* Cash flow from operations are greater than ROA (1 point)

Leverage, Liquidity and Source of Funds

* Lower ratio of long term debt to in the current period compared value in the previous year (1 point)
* Higher current ratio this year compared to the previous year (1 point)
* No new shares were issued in the last year (1 point)

Operating Efficiency
* A higher gross margin compared to the previous year (1 point)
* A higher asset turnover ratio compared to the previous year (1 point)

2007 2008 2009 TTM

Piotroski F Scores 7 7 4 4
Piotroski 1: Net Income 1 1 1 1
Piotroski 2: Operating Cash Flow 1 1 1 1
Piotroski 3: Return on Assets 1 1 0 0
Piotroski 4: Quality of Earnings 1 1 1 0
Piotroski 5: LT Debt vs Assets 0 0 0 0
Piotroski 6: Current Ratio 1 1 0 1
Piotroski 7: Shares Outstanding 1 1 0 0
Piotroski 8: Gross Margin 0 1 1 1
Piotroski 9: Asset Turnover 1 0 0 0
 The Beneish Model - M Score Variables
DSRI = Days' Sales in Receivables Index. Measured as the ratio of days' sales in receivables in year t to year t-1. A large increase in DSR could be indicative of revenue inflation.
GMI = Gross Margin Index. Measured as the ratio of gross margin in year t-1 to gross margin in year t. Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is
more likely to manipulate earnings.
AQI = Asset Quality Index. Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.AQI is the ratio of asset quality in year t to year t-1.
SGI = Sales Growth Index. Ratio of sales in year t to sales in year t-1. Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure
to manipulate in order to keep up appearances.
DEPI = Depreciation Index. Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t. DEPI greater than 1 indicates that assets are being depreciated at a slower
rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
SGAI = Sales, General and Administrative expenses Index. The ratio of SGA expenses in year t relative to year t -1.
LVGI = Leverage Index. The ratio of total debt to total assets in year t relative to yeat t-1. An LVGI >1 indicates an increase in leverage
TATA - Total Accruals to Total Assets. Total accruals calculated as the change in working capital accounts other than cash less depreciation.

The Beneish M Score Formula

The eight variables are then weighted together according to the following:

M = -4.84 + 0.92*DSRI + 0.528*GMI + 0.404*AQI + 0.892*SGI + 0.115*DEPI - 0.172*SGAI + 4.679*TATA - 0.327*LVGI

A score greater than -2.22 indicates a strong likelihood of a firm being a manipulator. In his out of sample tests, Beneish found that he could correctly identify 76% of manipulators, whilst only
incorrectly identifying 17.5% of non-manipulators.

The 5 Variable Version of the Beneish Model

The five variable version excludes SGAI, DEPI and LEVI which were not significant in the original Beneish model.

M = -6.065 + 0.823*DSRI + 0.906*GMI + 0.593*AQI + 0.717*SGI + 0.107*DEPI

A score greater than -2.22 indicates a strong likelihood of a firm being a manipulator.

Annual Beneish M Score

2006 2007 2008 2009 TTM
M Score - 5 Variable NA NA -2.28 -2.50 -1.34
M Score - 8 Variable NA NA -3.84 -4.93 -2.67
DSRI NA 2.28 0.92 1.36 0.83
GMI NA 1.31 0.81 0.92 0.91
AQI NA 0.78 0.73 2.93
SGI NA 6.40 2.44 1.52 1.95
DEPI NA 0.00 0.77 0.81 0.75
SGAI NA 0.28 0.70 1.48 0.90
TATA NA -0.65 -0.56 -0.56 -0.39
LVGI NA 0.64 0.37 2.17 0.37

Quarterly Beneish M Score

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10
M Score - 5 Variable -1.08 -2.99 -2.73 -3.02 -1.29 -3.07 -2.94
M Score - 8 Variable -1.58 -3.30 -3.21 -3.69 -1.33 -3.21 -3.05
DSRI 2.96 1.00 1.11 0.91 1.07 0.91 0.92
GMI 1.06 1.00 0.93 0.97 1.15 0.76 1.02
AQI 1.76 0.87 0.82 0.80 2.89 1.04 0.97
SGI 0.20 1.02 1.37 1.22 1.39 1.20 1.06
DEPI 3.80 0.91 1.04 0.66 1.23 0.72 0.86
SGAI 0.89 0.69 1.84 1.05 0.67 1.35 0.62
TATA -0.21 -0.19 -0.19 -0.20 -0.08 -0.13 -0.14
LVGI 0.64 0.81 1.09 1.78 0.42 1.01 0.89