HONG KONG, June 9 /PRNewswire-Asia/ -- Qin Jia Yuan Media Services Company Limited (HKEx: 2366, hereafter referred to as "QJY" or "the Group") hereby announces the interim results for the period ended 31 March 2010. The Group recorded a turnover of HK$248,933,000, a healthy increase of 115% and 10% respectively as compared to HK$115,798,000 for the same period last year and the annual turnover of HK$226,129,000 million last year. Net profit of the Group for 2010 amounted to HK$40,368,000, a reversal from the loss recorded last year.
In line with our past dividend policy, the Group declared an interim dividend of HK1.28 cents per share based on the profit after taxation per share. Shareholders may elect to receive shares in lieu of cash dividend.
76% of the turnover for the first half of 2010 was attributable to TV program production and included the rental revenue from and proceeds from the disposal of interests in QJY's film library of 4,000 hours of films & TV dramas. Revenue from QJY's exclusive TV channel advertising agency business and the 4-month income from the exclusive advertising on LED boards dedicated to Xinhua News Agency accounted for 23% of the turnover, while the remaining was derived from the marketing business. Marketing income included the turnover from Triangle Marketing Services Company Limited, in which 90% interests were acquired by QJY in June 2009, during the first six months of the year.
Last year's financial tsunami dealt a severe blow to China's television program production sector generally. "To counter this, the Group adjusted our strategy in the enrichment of our television drama library by focusing on planning and acquisitions of completed high quality television drama programs and investments in smaller scale television drama programs with short pay back period," said Dr. LEUNG Anita Fung Yee Maria.
The Group also stayed out of investments in large-scale television drama projects that would require substantial funding and long pay back period.
"It turned out that this strategy was the right call. The Group succeeded in maintaining our high income revenue and growth rate in the television drama businesses," said she.
As television remains the key traditional media platform in China, market share of television in China's media advertising space exceeds 70%. TV program production, marketing and advertising remain as principal businesses of the Group.
To strengthen our positioning in this lucrative business, the Group built up a professional team of media advertising elites and achieved major breakthroughs in the cross-platform media space last year. In December 2009, the Group exercised its exclusive advertising agency rights to news advertising display boards. We began operations of six large outdoor news advertising LED boards dedicated to Xinhua News Agency in China's major cities of Beijing, Shanghai, Guangzhou and Chengdu.
The Group also completed its acquisition of the substantial minority interests in CBS Outdoor (Beijing) Limited and the proceeds will be incorporated into QJY's results for the second half of the year.
Dr. LEUNG pointed the Group's business development will be in line with the "Cultural Industry Promotion Program" promulgated by Premier Wen Jiabao last year.
"With the implementation of new strategies, QJY aims at minimizing the investment risks in long pay back period projects of the TV program production business in case of future financial turmoil and will continue its development of the TV and outdoor advertising agency business which can sustain considerable growth every year," said she.
Current businesses of the Group, including cultural & creative activities, movie & TV production, advertising, large-scale functions/conventions & fairs and performing arts, together with the proposed new media businesses of publishing, games, teaching materials and digital contents in 2010, cover six out of those eight cultural programs, for which foreign investment is encouraged by national policies.
For enquiries, please contact: Trimaran Corporate Communications Senior Account Executive Canny Liu Tel: +852-3101-4684
SOURCE Qin Jia Yuan Media Services Company Limited