BEIJING, Feb. 4 /PRNewswire-Asia/ -- Legend Media, Inc. (OTC Bulletin Board: LEGE) a Chinese multi-media advertising company, today announced the release of their annual letter to shareholders from Chief Executive Officer and Director of Legend Media, Mr. Ju Baochun.
Dear Shareholders,
Thank you for being a loyal Legend Media Corporation shareholder. As we begin 2010, I wanted to outline some of the key initiatives and strategic objectives the Company is embarking on for 2010. Overall, the steps we are taking are in an effort to grow the business and further our brand recognition as a leading multi-media advertiser in China.
Before we look ahead, it is necessary to look back on the foundation we have built. In 2009, we took the necessary steps to build a consumer advertising network in China focused on reaching the affluent and mass affluent consumers in China through radio and airline travel. To this extent, we have developed relationships in China that are expected to provide access to key sales outlets and additional advertising assets.
Recently we reached a critical internal goal of securing the exclusive rights to nearly 40,000 minutes of radio advertising annually in Tianjin and Xi'an, two large, growing cities in China. The Company, as announced in September 2009, has acquired the rights to sell advertising content for Xinhua Airline Magazine, the in-flight magazine for Hainan Airlines (HNA) Group which has the potential to reach more than 20 million Chinese passengers annually.
With this important base in place our strategy going forward is to enhance the advertising sales business of the airline magazine Expression, both in scale and strength. Our efforts thus far have resulted in the magazine ranking among the top 4 national airline magazines in China. Our additional efforts are expected to create considerable income and profit for the company going forward.
There have also been important developments in China which could have a positive impact on our business going forward in 2010 and beyond. Geographically, we anticipate that the building of an international tourist island in Hainan province will have a significant impact on the province and Sanya, the province's main city. The international tourist island will be positioned as a sea-island international tourist destination, attracting tourists home and abroad. Our current client, the Hainan Airlines Group, whose largest shareholder is George Soros, will be headquartered in the province, presenting us with a strong opportunity to increase our brand recognition and increase sales in the advertising portion of our business. We believe we will see positive impact this year as a result of this expansion.
In addition to the expansion outlined above, there are other key initiatives scheduled for 2010 aimed at increasing advertising sales, brand recognition and market share:
Enhance direct-sales efforts: In 2010, the Company will focus on enhancing the operation capability of our Shanghai office. We will further develop our sales team, while the Company's management team will provide overall support to their efforts. We will keep more sales professionals in such cities as Beijing, Shenzhen, Haikou and Sanya.
Strengthen the strategic cooperation with "4A" (American Association of Advertising Agencies) companies: In 2010, the Company will establish a stronger "4A" marketing team which will entail management's frequent visits to these "4A" companies. We will strive to establish a strategic partnership with each of the companies and as a result, our sales cost will be greatly reduced.
Bolster our Communications efforts: The Company will organize large scale public relations efforts to strengthen its relationships with existing and prospective clients and lay the foundation for the Company's long-term growth plan. The Company will bring on board high-level marketing professionals who are able to successfully increase sales and the exposure of our Company in line with our business strategy.
In addition, we will work on restoring and maintaining the normal operation of our two radio businesses in Tianjin city and Xi'an city, and fully tapping the potential of those businesses. We plan on devoting more personnel and material resources to supporting the business development portion of our radio business and anticipate making noticeable progress in 2010.
With the initiatives I have outlined above, and an improving economy, we expect sales to increase by 10% this year over 2009 and our profit will be up by 15% and gross profit margin by 3%, respectively, over 2009.
In closing, we are confident that with our 2010 strategy in place, we have the tools and expertise to fuel an increase in advertising sales, brand recognition and market share. We are also working on identifying several other opportunities to acquire additional advertising rights and expect expansion of both airline and radio advertising sales going forward. We look forward to updating you as to our accomplishments throughout the year -- Mr. Ju Baochun, Chief Executive Officer and Director of Legend Media.
About Legend Media
Website: http://www.legend-media.com
Legend Media, Inc. (OTCBB: LEGE), headquartered in Beijing, is a leading China advertising company focused on selling advertising that reaches affluent consumers in China through major airline magazines and radio channels in key districts of China. The Company currently owns an exclusive sales agent contract for Expression, the airline magazine for Hainan Airlines Group (HNA Group). With the execution of the policy of building Hainan into an International Tourist Island, there will be more business opportunities for the airline magazine. What's more, the airline magazine is distributed to a network of the subsidiary hotels of HNA Group, which enables the airline magazine to reach 20 million direct readers and cover 50 million to 60 million readers indirectly per year.
Aside from the main business, Legend Media owns two radio stations in Tianjin and Xi'an. The execution of the policy of developing the Ring Bohai Economic Cirle brings Tianjin opportunities to further develop, which enable the radio media to have great potentials to grow. Xi'an is an old city in China and with the development of Xi'an economy, the radio business of Xi'an will have new business opportunities.
Legend Media will continue to develop a sales network and strive to cover and eventually reach the most valuable direct advertisers in China and expand the sales business of the Company through the acquisition of new and good-quality media.
Safe Harbor Statement
This press release contains certain statements that may include 'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes, expects, anticipate, optimistic, intend, will" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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