Gross Annual Advertising Value Reaching RMB6 Billion
HONG KONG, Aug. 18 /Xinhua-PRNewswire/ -- Asian Union New Media (Group) Limited ("Asian Union" or the "Group"; Stock Code: 00419.HK) today announced that Zhong Guan Group, an indirect wholly-owned subsidiary of Blower Investments, has entered into an advertising agency agreement with Guangdong Television to be the exclusive advertising agent of the Guangdong Satellite TV for a period of three years from 1 January 2009 to 31 December 2011, in additional to its existing advertising agency rights of Guangdong Satellite TV for 2008. Upon the completion of the acquisition of the entire issued capital of Blower Investments by the Group, Zhong Guan Group will become an indirect wholly-owned subsidiary of Asian Union.
Commentating on the transaction, Chairman of Asian Union, Mr. Edward Tian Suning said, "Bringing together the powerful combination of our extensive industry experience and expertise with Guangdong Satellite TV's high viewership and coverage especially in the prosperous Guangdong Province, will allow us to realize a platform that can broaden Asian Union's revenue base by capturing a larger market share and by strengthening our leadership position in the media space. Combining Guangdong Satellite TV and Travel Channel, Asian Union will own and manage gross annual advertising value reaching RMB6 billion."
Under the terms of the advertising agreements and management contract, Zhong Guan Group and its wholly-owned subsidiary will have the exclusive right to sell and distribute advertising resources, including air-time and other advertising resources of Guangdong Satellite TV, for a period of three years starting 2009, in additional to its existing advertising agency rights for 2008.
Guangdong Satellite TV is a satellite television channel operated by Guangdong Television ("GDTV"), which broadcasts nationwide a variety of television programs, including dramas, news and other documentary programs. Targeting at wealthy viewers in China, the channel's mission is "based in Guangdong, neighboring to Hong Kong and Macao with nationwide and overseas coverage". According to CSM media survey in 2006, GDTV's market share ranked 13th of over 40 provincial satellite channels (with the exception of CCTV channels). Guangdong Satellite TV channel ranked 2nd in viewership rating based on market share of channels covering urban and rural areas of Guangdong Province. Based on viewership coverage, Guangdong Satellite TV's broadcast footprint includes 690 million viewers in China and 2 billion viewers worldwide.
"We are excited that we have made another significant move toward our vision of becoming a leading player in the media industry through our cross media strategy. Our management team is committed to expanding traditional satellite TV channels as well as new media resources while creating more synergies across different media platforms. We are confident that this will further enhance our leadership position in China media industry, accelerate our growth and generate long-term returns for our shareholders," Mr. Tian said.
The board of directors has also proposed to change the name of the Company to "Media China Corporation Limited" to better reflect the Group's future business development and direction. The proposed name change and the acquisition of Blower Investments are subject to approval by Asian Union' shareholders.
About Asian Union:
Asian Union is a leading media group, satellite channel operator and entertainment content provider in China. As a media company with one of the largest libraries of films, TV comedies and dramas, Asian Union is engaged in various media related businesses in China, including consolidation and sale of advertising resources, and the production of television programmes, advertisements, television dramas and movies.
For more information, please contact:
Asian Union New Media (Group) Limited
Raymond Hau
Tel: +852-2877-8412
Email: raymondhau@aunewmedia.com
PRChina
Jane Liu
Tel: +852-2522-1838
Email: jliu@prchina.com.hk
PRChina
Henry Chik
Tel: +852-2522-1838
Email: hchik@prchina.com.hk
