Qin Jia Yuan Media Services announces 2011 interim results

25 May 2011 14 h 17 min 3 comments

Net Profit Up 26.65% to HK$51.13 million
6-Month Turnover Up 26.41% to Approximately HK$314 million

Earnings Per Share Increased to HK$6 cents, interim Dividend of HK$1.28 cents

HONG KONG, PRNewswire-Asia/ — Qin Jia Yuan Media Services Company Limited (HKEx stock Code: 2366) hereby announces the interim results for the period ended 31 March 2011.

The Group recorded a substantial growth in turnover to HK$314.67 million, a 26.41% increase as compared to the same period last year. Net profit of the Group amounted to approximately HK$51.13 million, representing a surge of 26.65% as compared to the same period last year.

In line with its past dividend payout policy, the Group declared an interim dividend of HK1.28 cents per share. Shareholders may elect to receive shares in lieu of cash dividend.

During the period, TV production and distribution, the core business of the Group, experienced a smooth development and delivered outstanding results with three major breakthrough results.

Breakthrough No.1, under the new cooperation model adopted with the nine long term provincial TV stations, this policy has proven to be effective in helping the Group to maintain a substantial profit as well as to secure market share. It has also guarded the Group’s investment in TV dramas to avoid the risk of production write-off due to long payoff period in the event of any future financial tsunami.

Breakthrough No. 2, the broadcasting right of the film library held by the Group throughout all these years was capable to realize considerable rental and sales income for 18 consecutive months.

Breakthrough No. 3, the Group has successfully established HuaXia Qin Jia Yuan Culture and Communication Company Limited (“HuaXia QJY”), which is 70% held by the Group, with Hua Xia Industrial (Holdings) Limited. Soon after its establishment, HuaXia QJY has successfully entered into an agreement with China TV Program Production Centre Company Limited, a wholly owned by China Central Television (“CCTV”), to cooperate in the planning, investment, production and distribution of TV dramas with no limitation on the number of episodes for a term of four years. The production of the first co-produced TV drama, “Eagle’s Nest – Reserve Officer”, has already begun production. The Bureau for Publicity of the Ministry of Public Security of China was invited to participate in the production in order to enhance the quality. It is expected that at least 4 long television programmes will be produced and distributed by the Group and CCTV jointly during the financial year.

The Group continued to strengthen another core business, TV advertising. This business unit will join hands with promising TV channels on advertising. It will also seek closer cooperation with local advertising agents.

On 2 April 2011, the Group has successfully acquired 55% shareholdings in Clear Light Group Limited of which has outstanding professionals in the industry, who have been engaging in the advertising business in China for more than 10 years with an impressive track record. The Group will further strengthen its TV advertising business development through acquisition of any outstanding small medium advertising agent.

The two business territories of the outdoor advertising platform are (1) the exclusive advertising agency business of LED boards with exclusive daily news highlights from Xinhua News Agency and (2) being the relative largest shareholder in CBS Outdoor (Beijing) Limited (“CBSO (Beijing)”), which has been the exclusive advertising agency with exclusive advertising right to all buses in the metropolitan area of Beijing. The operations of these two businesses have been growing steadily as planned. The Group will expand beyond the existing operation of Xinhua daily news LED boards and will develop other unique and exclusive outdoor advertising resources. In the meantime, the Group will identify strategic partners who have the capability to complement the Group’s outdoor advertising business for rapid future growth in this medium.

The Group’s marketing & public relations business is developing smoothly in China. In addition to providing professional services to its long-standing TV advertisers, this business unit has also won marketing contracts from Henderson Land and 3D-GOLD Group on top of its blue chip client, Hong Kong Trade Development Council, during the period. QJY believes its marketing and public relations business will fuel the development of the Group’s cross-media platform and create immeasurable synergy.

The Group has also expanded its traditional publishing business during the period by introducing 7 new works from Leung Anita Fung Yee Maria, a renowned writer in Hong Kong. This has successfully generated a turnover of HK$5 million. Amongst these works, one of Anita Leung’s old novels, managed to top the monthly literature best sellers’ chart of the bookstores in Wangfujing in the Capital in March of this year.

“With the smooth leadership development of the core businesses of TV production and advertising, all the other diversified cultural businesses under the Group’s cross-media platform will benefit from this unique synergy. In the second half of this year and the next fiscal, the Group will march into the harvesting period,” Dr. Leung Anita Fung Yee Maria, Chief Executive Officer of QJY, added.

About Qin Jia Yuan Media Services Company Limited (Stock code: 2366)

Founded in 1995 and listed on the Hong Kong Stock Exchange in 2004, Qin Jia Yuan is one of the leading enterprises engaged in a diversified, foreign-owned media business in China with leading capabilities in cross-media advertising sales, television content production and marketing services.

SOURCE Qin Jia Yuan Media Services Company Limited (24/5/11)

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