China MediaExpress Holdings, Inc. (fka CCME)

[Gene_finder]

How can CCME increase its revenue by more than 20 fold and revenue from direct sales by 10 fold while sales force remains almost flat?

(Thanks for the offer. This question has puzzling me. Please ask the management if Yicheng has a chance. Highly appreciated!)

http://www.sec.gov/Archives/edgar/data/1...
According to SEC form DEFM14a 2009-10-05 page 118-151, CCME's revenue grew more than 20 fold from 2006 to 2009 while its sales force almost remained flat. The revenue from direct sales also jumped more than 10x from previous years in 2009.

CCME reported revenues of $4 million, $26 million, 63 million and $95 million for year 2006 2007, 2008 and 2009, correspondingly. The reported people in sale force for 2006, 2007, 2008 and 2009 are 58, 76, 63[note 1] and 63, correspondingly.
-----------------------2006 ---- 2007 ---- 2008 ---- 2009
REVENUE(MILLION) ---- 4 ---- 26 ---- 63---- 95
Direct sales (%)------------ 7% ---- 3%---- 22%
Direct sale Rev (Million) -- 1.8 ---- 1.9---- 21
SALE FORCE --- 58[p151]--- 76[p151]--- 63[p148] ---63[p118]
[note: direct sale percentages are from recent presentation.]

In year 2007, 2008 and 2009, CCME experienced amazing revenue growth of 600%, 142% and 50%, correspondingly. However, its sale force has not changed significantly over this period. Moreover, in 2008, its sale force even dropped to 63 from 76 of 2007.

CCME’s ad slots are sold through two channels, ad agency and direct sales. By selling to agency, CCME may not need more sales stuff. But, CCME stated that the company needs more sales stuff to increase sales from direct sale channel in 2010. However, we did not see this happening in 2009 while the revenue from this channel jumped more than 10 fold from previous years.