China Media Monitor

th
| Fortnightly newsletter on the China Media industry | Issue No. 3, Published 18 May 2009 | Published by Heernet Ventures Limited (heernet.com) |

News

Baidu.com in partnership with China Unicom

China Mobile signs agreement with Guangdong government to invest CNY80 billion

Youku.com plans to launch 3G mobile television programmes

TOM Group plans to acquire remaining 35% stake in TOM Outdoor Media Group

China launches mobile number portability trial in the Hainan region

Huawei launches social networking website in China

Lingo Media Corporation forms strategic alliance with Shanghai Yangpu government

Perfect World Co. Ltd plans to launch Fantasy Zhu Xian, a 2D MMORPG

TM Entertainment and Media Inc enters agreement with Hong Kong Mandefu Holdings Ltd

China Techfaith Wireless Communication Technology Ltd plans to launch 16 mobile games

China Mobile forms strategic alliance with Taiwan’s FET

Data

Share price performance

Chinese media market coverage

Heernet Ventures publishes this newsletter as part of its research coverage of the Chinese media industry.
You can access more research on the Chinese media industry from our research website at G2Mi.com.
If you are a media company or financial investor seeking growth opportunities in the Chinese media industry,
we can assist you to ensure that you are successful in identifying and executing the best opportunities. With
dedicated teams in both Europe and Asia, we are well placed to provide ‘on the ground’ assistance and
support.
We can help you understand the structure of the Chinese media industry and the key challenges that exist for
foreign investors. We can also assist with deep analysis of key industry segments and assist you in both
identifying and negotiating with suitable, local companies.
For an initial discussion, contact Harjinder Singh-Heer on +44 (0) 208 180 7223 or by email on
harjinder@heernet.com.

1/6
© Heernet Ventures Limited 2009
China Media Monitor
News
Baidu.com in partnership with China Unicom
Date 15 May, 2009
Baidu.com, the Chinese search engine, has entered into a
partnership with China Unicom, a telecommunications
operator, to jointly develop wireless search services.
According to the agreement, China Unicom’s Shanghai
branch will support Baidu’s search engine on its 2.5G and
3G portal sites to offer quick search services to China
Unicom’s subscribers. The companies will also cooperate in
other services including brand promotion, 3G wireless
search, the introduction of new products, and research and
development of industrial standards.
Baidu.com has also entered into a cooperative agreement
with 4 mobile phone companies (Samsung, Lenovo, Tianyu
and MediaTek), for wireless search development in China.
According to the agreement, Baidu.com, Samsung, Lenovo
and Tianyu will jointly develop wireless search client
software. The icons for the developed software will be set
on the menus of mobile phones manufactured by those
companies. Baidu.com and MediaTek will also jointly
develop a search service based on MediaTek’s operating
system.
Youku.com plans to launch 3G mobile television
programmes
Date 14 May, 2009
Youku.com, an online video website, has announced that it
will offer television programmes to its 3G mobile users.
The company has also signed an agreement with China
Telecom Corporation Ltd to produce a 3G TV channel,
which will be launched later this month.
TOM Group plans to acquire remaining 35% stake
in TOM Outdoor Media Group
Date 14 May, 2009
Tom Group Ltd, a diversified media company, has
announced that it plans to acquire the remaining 35% stake
in TOM Outdoor Media Group through TOM Outdoor
Media Holdings (a subsidiary), from Singapore Press
Holdings for HK$60 million. Following the acquisition,
© Heernet Ventures Limited. All Rights Reserved
TOM Outdoor Media Group, which operates in advertising,
will become a wholly owned subsidiary of TOM Group Ltd.
ITN enters agreement with Foreign Language
Teaching and Research Press
Date 07 May, 2009
ITN, an English language publisher, has entered into a
partnership agreement with Foreign Language Teaching and
Research Press to provide 60 hours of multimedia content
for mobile, web and DVD educational resources. The
service will be offered in 200,000 schools and 3,000 higher
education colleges.
NetDragon Websoft Inc. launches English
expansion pack for Eudemons Online
Date 08 May 2009
NetDragon Websoft Inc., an online game developer and
operator in China, has announced the launch of The Divine
Path, an English expansion pack for its online fantasy game,
Eudemons Online. The game is already available in 6
languages including Portuguese, Malay, Indonesian and
Chinese and is traded in international markets.
China Mobile opens registration for 139.com, a
social networking website
Date 08 May, 2009
China Mobile has announced the start of registration for
139.com, a social networking website operated by its
Internet subsidiary. The website offers 10 applications
including photo albums, blogs, music, voting and gift
sending. Only China Mobile subscribers can register.
China Telecom and Toocle.cn in joint venture
Date 14 May, 2009
Toolce.cn, a B2B e-commerce portal operated by NetSun,
and China Telecom, a telecom operator, have entered into a
joint venture to promote technological development in
China’s rural areas. The company has made an initial
investment of CNY10 million. Toocle.cn and China
Telecom also plan to develop a joint venture Internet portal.
China Media Monitor

TM Entertainment and Media Inc enters agreement

with Hong Kong Mandefu Holdings Ltd
Date 04 May 2009
TM Entertainment and Media, Inc. has announced a share
exchange agreement with Hong Kong Mandefu Holdings
Ltd (China Media Express), an operator of television
advertising networks on inter-city express buses in China.
According to the agreement, TM Entertainment will issue
19.5 million common shares and will pay HK$20.0 million
in cash for 100% of China Media Express’ outstanding
equity. The transaction is expected to be closed in Q3 2009.
As per the agreement, TM Entertainment will change its
name to China Media Express Holdings Inc.
China announces a 60% cut in fixed-line Internet
settlement fees in June 2009
Date 13 May, 2009
China’s Ministry of Industry and Information Technology
has issued a notice to China’s 3 telecom operators to cut
fixed-line Internet settlement fees by 60%, from CNY0.15 to
CNY0.06 per minute, from June 2009. Telecom service
providers are required to pay Internet settlement fees to the
carriers.
China launches mobile number portability trial in
the Hainan region
Date 11 May, 2009
The Hainan Provincial Administration of Communications
has announced the launch of a mobile number portability
trial in the region. The service is currently offered on a one-
way trial, which allows the users of one operator to select
the services of any other operator but keep the same number.
Huawei launches social networking website in
China
Date 11 May 2009
Huawei, a Chinese telecommunications solutions provider,
has announced the launch of aimi.com, a social networking
website. The website targets Chinese white-collar netizens
and offers features such as photo albums, blogs, groups and
voting in polls.
China Mobile signs agreement with Guangdong
government to invest CNY80 billion
Date 15 May, 2009

China Mobile Communications Corporation, a telecom

China Mobile enters agreement with the Shanghai operator, has entered into an agreement with the Guangdong
government to invest CNY31 billion provincial government to invest CNY80 billion over the
Date 12 May, 2009 next 5 years in the development of the IT industry and
construction of a TD-SCDMA network in the province.
China Mobile Ltd, a telecommunications operator, has
According to the agreement, CNY3 billion will be invested
entered into an agreement with the Shanghai government to
in the construction of the TD network and CNY1 billion in
invest CNY31 billion in the construction of a TD-SCDMA
the construction of 3G technology infrastructure for the
network in the city. According to the agreement, the
2010 Shanghai World Expo.
investment will be made over 2009-2011, and will include
CNY3 billion for 3G network construction. The company
has already constructed 3,779 TD-SCDMA base stations and SARFT and China Mobile enter agreement
will construct 1,500 more by the end of 2009.
Date 11 May 2009

The State Administration of Radio Film and Television,

Shanghai Telecom and The9 enter agreement through its China Satellite Mobile Broadcasting Corporation
Date 12 May, 2009 subsidiary, has announced an agreement with China Mobile
for the companies to jointly promote TD-SCDMA mobile
Shanghai Telecom, a subsidiary of China Telecom, and
phones with the CMMB function to provide wireless
The9, an online game developer and operator, have entered
streaming video services. China Mobile will manage the
into an agreement to jointly promote and market 3G services
operations of the CMMB service, including fee collection.
in China. According to the agreement, 3G users can pay
through the tolls generated by their mobile phone calls.

© Heernet Ventures Limited. All Rights Reserved

China Media Monitor
Ctrip.com International Ltd to acquire additional
stake in Home Inns & Hotels Management Inc
Date 07 May 2009
Ctrip.com International Ltd, a travel service provider of
hotel accommodation, airline tickets and packaged tours of
China, has entered into an agreement to acquire an
additional 9.52% stake in Home Inns & Hotels Management
Inc through a private placement of US$50million.
Ctrip.com International Ltd will own an 18.25% stake in
Home Inns & Hotels Management Inc following the
transaction, which is expected to be closed before 21 May
2009.
Television Broadcasts and Shaw Brothers form
joint venture
Date 07 May, 2009
Television Broadcasts Ltd, a television broadcasting
company, has entered into a 50:50 joint venture with Shaw
Brothers to form a film production company, Concept
Legend Ltd. The joint venture company will produce
motion pictures for worldwide distribution. Television
Broadcasts Ltd will invest up to HK$20 million in Concept
Legend Ltd.
Lingo Media Corporation forms strategic alliance
Shanghai Yangpu government
Date 06 May, 2009
Lingo Media Corporation, a provider of online and print
education products and services, has entered into a strategic
alliance with the Yangpu government to provide English
language learning services through Speak2Me Inc, a wholly
owned subsidiary. The government will adopt Speak2Me’s
subscription-based customised training platform, which
provides English training services to corporations in
Shanghai, including state-owned enterprises, local municipal
corporations, Shanghai district governments and the local
Shanghai Ministry of Education, for K-12 students.
© Heernet Ventures Limited. All Rights Reserved
Perfect World Co. Ltd plans to launch Fantasy Zhu
Xian, a 2D MMORPG
Date 05 May, 2009
Perfect World Co. Ltd, an online game developer and
operator in China, has announced that it plans to launch
Fantasy Zhu Xian, a 2D turn-based cartoon MMORPG, in
2009. The game will be based on the novel, Zhu Xian. It
will be first online game to be operated on Perfect World’s
proprietary EPARCH engine.
China Techfaith Wireless Communication
Technology Ltd plans to launch 16 mobile games
Date 04 May, 2009
China Techfaith Wireless Communication Technology Ltd,
a developer of cell phone solutions, has announced that it
plans to launch 16 mobile MMORPG titles in June 2009
through One Net Entertainment, a subsidiary. The games
will be in the action and mystery genres and will be offered
for free download on the company’s 798uu.com web portal
(although gamers will be charged for play time, weapons
and props).
China Mobile forms strategic alliance with
Taiwan’s FET
Date 01 May, 2009
China Mobile has entered into a strategic agreement with
FET, a Taiwan-based telecom operator. According to the
agreement, China Mobile will acquire a 12% stake in FET
for NT$17.77 billion in cash. The deal is still awaiting
clearance from Taiwanese regulators, including Taiwan’s
National Communications Commission and the Investment
Commission under Taiwan’s Ministry of Economic Affairs.
The operators will also form a joint venture in China, in
which China Mobile and FET will hold 51% and 49%,
respectively.
China Media Monitor

Share Price data

Company name Reuters Bloomberg Currency Current % Change

Code Code price
1 mth 6 mth 12 mth

Diversified Media
Sing Tao News Corporation Limited 1105.HK 1105:HK HK$ 0.37 13.64 11.94 -67.67
TOM Group 2383.HK 2383:HK HK$ 0.43 22.86 65.38 -18.87

Broadcasting
Hunan TV & Broadcast Intermediary 000917.SZ 000917:CH CNY 15.75 -12.45 43.48 24.71
Phoenix Satellite Television Holdings 2008.HK 2008:HKG HK$ 1.05 17.98 66.67 -16.00
Shaanxi Broadcast & TV Network 600831.SS 600831:SHH CNY 7.44 -0.90 53.77 -30.17

Publishing
Ming Pao Enterprise Corp Ltd 0685.HK 685:HK HK$ 1.08 -1.82 -10.00 -47.83
Next Media Limited 0282.HK 282:HKG HK$ 1.22 24.49 -4.69 -62.35

Internet
Baidu BIDU.O BIDU:US US$ 234.60 18.51 23.56 -35.04
Alibaba 1688.HK 1688:HK HK$ 12.86 50.94 150.19 -13.11
i-Cable Communications 1097.HK 1097:HK HK$ 0.70 16.67 32.08 -43.09
Shanda Interactive Entertainment Ltd SNDA.O SNDA:US US$ 49.51 -5.12 112.85 35.98
Sina Corporation SINA.O SINA:US US$ 26.66 -5.63 2.50 -48.61
Sohu.com Inc. SOHU.O SOHU:US US$ 53.16 6.66 14.99 -33.80
Tencent Holdings Limited 0700.HK 700:HK HK$ 79.95 29.47 69.39 23.28

Online Gaming
China Mass Media International
Advertising Corporation CMM.P CMM:US US$ 3.00 42.86 -30.39 -85.00
Giant Interactive group Inc GA.N GA:US US$ 8.04 5.37 34.00 -48.26
Kingsoft Corporation Limited 3888.HK 3888:HK HK$ 4.70 35.00 109.00 9.00
NetDragon Websoft Inc. 0777.HK 777:HK HK$ 5.94 37.50 128.46 -54.24

Outdoor Advertising
Clear Media 0100.HK 100:HK HK$ 2.68 31.37 19.11 -60.76
VisionChina Media VISN.O VISN:US US$ 5.03 -19.90 -2.71 -74.70

© Heernet Ventures Limited. All Rights Reserved

China Media Monitor

Published by:
Heernet ventures limited
London UK
Tel: +44 (0) 208 180 7223
Fax: +44 (0) 870 762 3014
Web: heernet.com, G2Mi.com

© Heernet ventures limited 2009. All Rights Reserved.

All corporate logos, images and brands are copyright of the respective companies.

TERMS & CONDITIONS OF USE

Every attempt has been made to ensure that the information in this publication is correct at the time of publication.
Heernet ventures limited and its directors do not accept any liability for any errors or omissions within this
publication. Unless specified, the views expressed in this publication are purely those of the author.
The content of this publication does not in anyway constitute investment advice or investment recommendations.
Heernet Ventures limited does not provide investment advice or investment advisory services and is not regulated
by the Financial Services Authority (FSA) in the UK or any other financial services regulator in any other country.
The content of this publication can not be reproduced without the written permission of the author.

© Heernet Ventures Limited. All Rights Reserved