BeiAo Group Invested RMB250 Million in QJYfor Joint Investments in Quality TV Series in 3 Years

Qin Jia Yuan Media Services Company Limited
2011-07-19 20:51 1844

BEIJING, July 19, 2011 /PRNewswire-Asia/ -- Qin Jia Yuan Media Services Company Limited (stock code: 2366, hereinafter referred to as "QJY" or the "Group") announces that Beijing BeiAo Group Inc. Ltd. (hereinafter referred to as "BeiAo"), a wholly-owned subsidiary of Beijing State-owned Assets Management Co. Ltd. (hereinafter referred to as "State-owned Assets Company") entered into an agreement in relation to the joint investment and production of TV series with HuaXia Qin Jia Yuan Culture and Communication Company Limited, a company under the control of QJY (hereinafter referred to as "HuaXia QJY"), pursuant to which BeiAo agreed to invest approximately RMB TWO HUNDRED AND FIFTY MILLION ONLY (¥250,000,000.00) (hereinafter referred to as the "BeiAo Investment") in TV series production projects of QJY or HuaXia QJY (hereinafter referred to as the "QJY TV Series") in three years.

The principle businesses of QJY are the production, acquisition and distribution of TV series, turnover of which for the whole year of 2010 amounted to RMB297 million (first half of 2010: RMB189 million). Turnover for the first half of this year has jumped to RMB269 million, representing an increase of 42% as compared to the corresponding period last year. HuaXia QJY entered into a 4-year long-term co-operation agreement with China TV Program Production Centre Company Limited (hereinafter referred to as "CCTV") at the end of 2010 for the production of quality TV dramas with no limitation on quantity per year. Unless the first-round broadcasting fees offered by other domestic TV stations or satellite TV channels are higher than those offered by CCTV during bidding, the first-round broadcasting of the QJY Series will be made on CCTV. The majority stake in each QJY Series will be held by QJY or HuaXia QJY and the investors will be entitled to the profits thereof proportionate to their investments.

"The BeiAo Investment proves that although the production of TV series has been boosted by being incorporated in the national policy of promoting cultural industries, the domestic demand for high quality TV series is still well above supply. In addition to making huge investments in the co-operation with QJY, it is believed that BeiAo will, leveraging on its status as an internationally- and domestically-renowned cross-media group with its parent, State-owned Assets Company, controlling stunning assets of approximately RMB50 billion, also help lift both the quality and quantity of the QJY Series with its capital, talents and expertise. Turnover of the production, acquisition and distribution of TV series of QJY for 2012 is expected to reach new heights with the push of the BeiAo Investment," explained Dr. Leung Anita Fung Yee Maria, Chief Executive of QJY.

About Beijing BeiAo Group Inc. Ltd.

Beijing BeiAo Group Inc. Ltd. (hereinafter referred to as "BeiAo") was established in 1994. In the past decade, BeiAo not only has a solid history in organizing major events and sports competitions and earned recognition from the State and the society, but also witnessed the rapid development of the cultural and sports industry in China. In 2010, BeiAo as a whole was incorporated into Beijing State-owned Assets Management Co., Ltd. by the State-Owned Assets Supervision and Administration Commission of the People's Government of Beijing Municipality, and was renamed as "Beijing BeiAo Group Inc. Ltd." on 18 January 2011, which marked a new era in its development. The company is engaged in a wide range of businesses, including major sectors of the cultural and sports industry, such as major event, advertising, convention and exhibition, tourism, film and television & animation and comics, cultural real property, new media and sports.

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.

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Source: Qin Jia Yuan Media Services Company Limited