China Media Monitor

| Fortnightly newsletter on the China Media industry | Issue No. 5, Published 15th June 2009 | Published by Heernet Ventures Ltd. (heernet.com) |

News

Ali Wang Wang launches online advertising services

Youku.com and Taobao.com form strategic partnership

China Telecom launches online shop on Taobao.com

Next Media Ltd launches free online video news service

Shanda Interactive Entertainment Inc to acquire 51% stake in Hurray Holding Co.

The9 and Kingsoft agree to jointly operate online game

Channel V launches mobile TV in Hong Kong

China Mobile enters agreement with China Satellite Mobile Broadcasting Corp

EchoStar and AsiaSat form joint venture

Microsoft launches Bing, an online search engine

Tenpay enters agreement with Ctrip.com

Government Information Office plans to launch online newspaper title

Data

Share price performance

Deal sheet

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
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We can also assist with deep analysis of key industry segments and assist you in both identifying and negotiating with suitable,
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For an initial discussion, contact Harjinder Singh-Heer on +44 (0) 208 180 7223 or by email on harjinder@heernet.com.

© Heernet Ventures Limited 2009

China Media Monitor
News
Ali Wang Wang launches advertising products
Date 11 June, 2009
Ali Wang Wang, an instant messaging tool developed by
Alisoft, has launched targeted online advertising services.
Alisoft is a software subsidiary of Alibaba.com Ltd, a B2B
e-commerce company.
Youku.com and Taobao.com form strategic
partnership
Date 11 June, 2009
Youku.com has entered into a strategic partnership with
Taobao.com to promote video shopping in China’s e-
commerce sector. According to the agreement, the 2
companies will jointly launch a video shopping service this
month. The service will first be offered to Taobao.com’s
customised online auction and e-commerce shops.
China Telecom launches online shop on
Taobao.com
Date 10 June, 2009
China Telecom, a telecommunications operator, has
launched an online shop on Taobao.com, an e-commerce
website operated by Alibaba.com. The website offers China
Telecom’s 3G terminal products such as 3G network
interface cards, mobile phones, netbooks and wireless
packages, as well as wireless broadband and voice services.
Next Media launches free online video news
service
Date 10 June, 2009
Next Media has launched a free online video news service
that can be accessed on its Apple Daily website. Next
Media Ltd publishes newspapers, books and magazines, and
sells advertising space in its publications and on its web
portals. It also offers printing and reprographic services.
© Heernet Ventures Limited. All Rights Reserved
Shanda Interactive Entertainment Inc to acquire
51% stake in Hurray Holding Co.
Date 09 June, 2009
Shanda Interactive Entertainment Inc. has entered into an
agreement to acquire a 51% stake in Hurray Holding Co. for
US$46.2 million. Shanda Interactive Entertainment Inc. is
an interactive entertainment media company that offers
MMORPG and advanced casual online games. Hurray
Holding Co. Ltd is a China-based company that operates in
artist development, music production, wireless music
distribution and other wireless value-added services
The9 and Kingsoft agree to jointly operate online
game
Date 09 June 2009
The9 and Kingsoft have entered into an agreement to jointly
operate JX3 Online, an online game developed by Kingsoft.
The9 Ltd is an online game operator in China while
Kingsoft Corporation Ltd operates in software development,
distribution and other related services.
Channel V launches mobile TV in Hong Kong
Date 06 June, 2009
Channel V Ltd has launched a mobile version of its Channel
V in Hong Kong. The service offers programmes through
video-on-demand and mobile TV services. Its services are
available to subscribers to PCCW Mobile, CSL, SmarTone-
Vodafone and 3, mobile operators in Hong Kong. Users
can access the service at a charge of HK$3 per clip or a
monthly price of HK$18-20 for unlimited access. Channel
V is a lifestyle entertainment channel for young people.
Huawei Technologies and Netcom launch mobile
broadband Internet connection
Date 05 June, 2009
Huawei Technologies and Netcom have launched a mobile
broadband Internet connection for a live commercial LTE
network in Oslo. The connection offers high resolution
photos, music, movies and mobile business applications at
high speeds. The LTE network is operated by TeliaSonera
Group, which offers telecommunication services in Nordic
and Baltic countries.
China Media Monitor
Walt Disney Co launches VV8.com
Date 04 June, 2009
Walt Disney Co’s Disney Channel has launched VV8.com
in cooperation with NetMovie Co. VV8.com is an online
channel that offers comedy series, cartoons, movies and
other animated programmes. The Disney Channel is a cable
television provider of children’s content. NetMovie Co is a
Beijing-based digital entertainment content provider.
China Broadband to acquire 51% stake in Laketune
Technologies
Date 03 June, 2009
China Broadband has entered into an agreement to acquire a
51% stake in Laketune Technologies. China Broadband
operates in cable broadband services and publishes digital
and analogue programme guides in the Shandong province.
Laketune Technologies, a subsidiary of DVN Holdings,
develops interactive cable TV technology and services.
China Unicom reduces 3G service rates by 50%
Date 03 June, 2009
China Unicom, a telecommunications operator, has
announced a 50% reduction in its 3G service rates. The
company has waived roaming, national call and incoming
call charges and now offers 3G packages for between
CNY186 and CNY1,686.
PME Group acquires stake in digital sports
television channel
Date 03 June, 2009
PME Group has acquired a 49% stake in Giant Billion Ltd
for HK$200 million through Smart Genius, a subsidiary.
Giant Billion Ltd holds a 51% stake in-Beijing based
Zhongtijiang Cultural Broadcast Co., Ltd, which has an
agreement with China DTV Production Co., Ltd for the
operation and marketing of a digital sports television
channel. China DTV Production Co., Ltd is a subsidiary of
China Central Television (CCTV) and operates in the launch
and programming of CCTV’s digital pay-TV channels.
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China Mobile enters agreement with China Satellite
Mobile Broadcasting Corp
Date 02 June, 2009
China Mobile has entered into a cooperation agreement with
China Satellite Mobile Broadcasting Corp (CSMB).
According to the agreement, China Mobile’s TD-CMMB
users will have access to TV and radio programmes from
some of CSMB’s channels in 174 cities in China. CSMB
will create and broadcast the TV programmes and construct
and maintain CMMB networks.
EchoStar and AsiaSat form joint venture
Date 02 June, 2009
EchoStar Corporation and Asia Satellite
Telecommunications Company have entered into a joint
venture to provide a DTH service in Taiwan and other parts
of Asia. The satellite TV service will be broadcast from
AsiaSat 4. EchoStar Corporation sells equipment and offers
digital broadcast and satellite services worldwide. Asia
Satellite Telecommunications Company Ltd is a wholly
owned subsidiary of Asia Satellite Telecommunications
Holdings Ltd.
Tenpay enters agreement with Ctrip.com
Date 01 June 2009
Tenpay, an online payment tool operated by Tencent Ltd,
has announced a cooperation agreement with Ctrip.com.
According to the agreement, the users of Tenpay can access
Ctrip.com through their Tencent QQ instant messaging
accounts for ticket queries, airline searches, hotel searches
and booking reservations. Ctrip.com is a provider of online
travel services in China.
Government Information Office plans to launch
online newspaper title
Date 30 May 2009
The Government Information Office has announced that it
plans to launch an online version of Taiwan Today, an
English language weekly newspaper title in Taiwan.
Taiwantoday.tw will offer news from Chinese-language
newspapers in English.
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$ 0.46 22.67 33.33 -56.60
TOM Group 2383.HK 2383:HK HK$ 0.46 8.14 40.91 1.09

Broadcasting
Hunan TV & Broadcast Intermediary 000917.SZ 000917:CH CNY
Phoenix Satellite Television Holdings 2008.HK 2008:HKG HK$ 1.15 11.65 69.12 -1.71
Shaanxi Broadcast & TV Network 600831.SS 600831:SHH CNY 8.04 8.20 47.21 10.96

Publishing
Ming Pao Enterprise Corp Ltd 0685.HK 685:HK HK$ 1.15 -8.00 -5.74 -43.07
Next Media Limited 0282.HK 282:HKG HK$ 1.18 1.72 38.82 -64.24

Internet
Baidu BIDU.O BIDU:US US$ 300.69 25.52 170.16 -5.73
Alibaba 1688.HK 1688:HK HK$ 13.86 19.90 144.44 -2.39
i-Cable Communications 1097.HK 1097:HK HK$ 0.79 27.42 31.67 -32.48
Shanda Interactive Entertainment Ltd SNDA.O SNDA:US US$ 60.85 23.23 113.81 116.24
Sina Corporation SINA.O SINA:US US$ 30.01 9.09 13.46 -34.66
Sohu.com Inc. SOHU.O SOHU:US US$ 67.64 22.27 55.28 -13.40
Tencent Holdings Limited 0700.HK 700:HK HK$ 89.80 25.07 92.09 45.19

Online Gaming
China Mass Media International
Advertising Corporation CMM.P CMM:US US$ 5.51 79.48 171.43 -72.45
Giant Interactive group Inc GA.N GA:US US$ 8.73 5.95 46.23 -32.33
Kingsoft Corporation Limited 3888.HK 3888:HK HK$ 5.34 28.67 98.51 43.94
NetDragon Websoft Inc. 0777.HK 777:HK HK$ 5.12 -6.06 74.74 -43.11

Outdoor Advertising
Clear Media 0100.HK 100:HK HK$ 3.70 48.00 198.39 -45.59
VisionChina Media VISN.O VISN:US US$ 6.27 16.98 19.43 -60.59

© Heernet Ventures Limited. All Rights Reserved

China Media Monitor

Deal Sheet

A summary of key deals and joint ventures over the last 2 months.

Date Sub Sector Investor Investee Terms Details

June-09 Online gaming Shanda Interactive Hurray Holding Co. 51% stake Hurray Holding Co. Ltd is a China-based company that
Entertainment operates in artist development, music production, wireless
music distribution and other wireless value-added services.

May-09 Internet services China Broadband Laketune 51% stake China Broadband operates in cable broadband services and
Technologies publishes digital and analogue programme guides in the
Shandong province. Laketune Technologies, a subsidiary
of DVN Holdings, develops interactive cable TV technology
and services.

May-09 Online Media Ctrip.com International, Home Inns & Hotels HK$50 million Ctrip.com International Ltd provides online travel services,
Ltd (China) Management Inc. (additional 9.52% offering accommodation, airline tickets and package tours in
(China) stake) China. Home Inns & Hotels Management Inc. develops and
manages economy hotels in China under the Home Inn
brand.

April-09 Telecoms China Mobile (China) Far EasTone HK$4.1 billion China Mobile is a telecommunications operator that offers
Telecoms (12% stake) fixed, wireless and broadband services in China. Far
EasTone Telecommunications is a Taiwan-based telecom
operator.

April-09 Publishing Pearson PLC (United Wall Street English US$145 million Pearson PLC is an international media company engaged in
Kingdom) (China) (100% stake) education, business and consumer publishing in the United
Kingdom. Wall Street English is a Chinese subsidiary of
Wall Street Institute and operates 39 English language
training centres in 7 Chinese cities.

April-09 Broadband China Broadband, Inc. AdNet Media n.d China Broadband, Ltd., provides cable broadband services
Technologies Co. and publishes digital and analogue programme guides in
Ltd. the Shangdong province of China. AdNet Media
Technologies Co. Ltd. is a Beijing-based provider of
advertising content to Internet cafes.

© Heernet Ventures Limited. All Rights Reserved

China Media Monitor

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