China Media Monitor

Monitoring industry and company developments in the Chinese media industry
| Monthly newsletter | Issue No. 15, Published 1 December 2009 | Published by Heernet Ventures Limited (heernet.com) | Subscribe at G2Mi.com |

News
FIFA signs agreement with CCTV Shanda Interactive enters into partnership with Hunan TV Xinhua Sports & Entertainment (Q3 2009 results) Deal Sheet AirMedia Group Inc. (Q3 2009 results) China Digital TV Holding Co., (Q3 2009 results) Shanda Interactive Entertainment Ltd plans to acquire Ku6.com Sina Corp. raises US$ 180 million from three investment firms China Eastern Airlines Corporation Ltd. enters into agreement with Alibaba Group Giant Interactive Group Inc. (Q3 2009 results) 51job, Inc. (Q3 2009 results) China Finance Online Co. Ltd. (Q3 2009 results) The9 Ltd. (Q3 2009 results) eLong, Inc. (Q3 2009 results) NetEase.com, Inc. (Q3 2009 results) Perfect World (Q3 2009 results) Kong Zhong Corp. announces its plan to acquire literature website Sina Corporation (Q3 2009 results) Tencent Holdings Ltd. (Q3 2009 results) Ctrip.com International, Ltd. (Q3 2009 results) TripAdvisor acquires travel search engine, Kuxun.cn KongZhong Corporation (Q3 2009 results) City Telecom (H.K.) Ltd. (annual results) Circulation data Mobile handset and subscribers data

Data
Share Price Performance

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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. G 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 ope provide ‘on the ground’ assistance and support.
For an initial discussion, contact Harjinder Singh-Heer on +44 Singh (0) 208 180 7223 or by email on harjinder@heernet.com.

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News

Media
FIFA signs agreement with CCTV
16 November 2009

FIFA has entered into an agreement with China Central Television (CCTV) for broadcasting rights for FIFA tournaments on CCTV channels and website. According to the agreement, CCTV will broadcast all tournaments until 2014 including 2010 and 2014 World Cups. China Central Television is a state owned broadcasting company, holding the China’s largest national TV network. The company operates a channel, CCTV International (CCTV-9) and its online version CCTV.com for international markets.

station, with an annual program production capacity of approximately 6,000 hours. Shanda Interactive Entertainment Ltd. offers entertainment content including massive multi-player online role-playing games and advanced casual online games.

Xinhua Sports & Entertainment (Q3 2009 results)
12 November 2009

China Digital TV (Q3 2009 results)
10 November 2009

China Digital TV Holding Co., Ltd. announced its financial results for Q3 2009; the company generated total revenue of US$ 12.2 million, an annual decline of 28.2%. It generated 87% of its revenue from smart cards (in Q3 2009). Its net income decreased annually by 40.2% to US$ 4.9 million in Q3 2009. China Digital TV provides conditional access systems for the Chinese digital television market.
Particulars (US$ million) Products Services Total Revenue Net income Net Margin (%) Source: ir.chinadtv.cn Q3 2008 15.1 1.9 17.0 8.2 48.2 Q3 2009 10.6 1.6 12.2 4.9 40.2 % Change -29.8 -15.8 -28.2 -40.2

Xinhua Sports & Entertainment has announced financial results for Q3 2009. The company generated net revenue of US$ 39.6 million, an annual decline of 20.2%. Advertising services contributed 56% in Q3 2009, totaling US$ 22.3 million. Its net loss decreased to US$ 11 million in Q3 2009. XSEL is a leading China based sports and entertainment media company. The company offers sports related content through different platforms including television, internet, mobile and other multimedia products.
(US$ million) Advertising services Content production Advertising sales Publishing services Total Net Revenue Net loss Revenue segmentation Broadcast: Television Radio Mobile Production Subtotal Advertising Print/Online Outdoor/Other BTL Marketing Subtotal Print Newspaper Magazines Subtotal Source: xsel.com Q3 2008 26.0 7.8 15.7 0.1 49.6 -15.7 Q3 2009 22.3 0.1 17.0 0.1 39.6 -11.0 % Change -14.2 -98.7 8.3 86.4 -20.2 -29.9

6.1 2.7 3.3 6.0 18.1 15.5 7.4 5.6 28.5 1.5 1.5 3.0

11.5 2.1 4.2 0.1 17.9 8.0 2.3 7.6 17.9 2.0 1.8 3.8

88.5 -22.2 27.3 -98.3 -1.1 -48.4 -68.9 35.7 -37.2 33.3 20.0 26.7

Shanda Interactive enters into partnership with Hunan TV
12 November 2009

Shanda Interactive Entertainment Ltd, through its subsidiary, Shanda Pictures Ltd. has entered into a partnership with Hunan Broadcasting and Television Group (Hunan TV) to form a new film and television company. According to deal, both the companies will invest Yuan 600 million in the joint venture. The joint venture will produce and distribute movies and television series and other related agency services. Hunan TV is a leading local television

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CHINA MEDIA MONITOR

AirMedia Group Inc. announces its financial results for Q3 2009
10 November 2009

Internet
Shanda Intercative Entertainment Ltd plans to acquire Ku6.com
27 November 2009

AirMedia Group Inc. has announced financial results for Q3 2009. The company generated total revenue of US$ 37.7 million, an annual increase of 12%. It generates most of its income from digital screens in airports (contributing 45% in Q3 2009). Its net income increased by 15.2% (year on year) to reach US$ 37.2 million in Q3 2009. The company sold 8,187 time slots in digital screens in airports (an annual increase of 146.8%); it currently offers screens in 31 airports.
(USD million) Digital Frames in Airports Digital TV screens in airports Digital TV screens on airplanes Traditional media in airports Other displays Total Revenue Net income Net margin (%) *Digital Frames in Airports Number of airports in operation Number of time slots available for sale Number of time slots sold *Digital TV screens in airports Number of airports in operation Number of time slots available for sale Number of time slots sold *Digital TV screens on airplanes Number of airports in operation Number of time slots available for sale Number of time slots sold *Traditional media in airports Number of locations available for sale Number of locations sold Q3 2008 10.1 13.1 6.6 2.0 2.0 33.7 32.3 95.8 Q3 2009 17.1 8.4 4.1 7.3 0.9 37.7 37.2 98.7 % Change 69.3 -35.9 -37.9 265.0 -55.0 11.9 15.2

Shanda Interactive Entertainment is planning to acquire Ku6.com, a leading Beijing based video website, for US$ 44 million through its subsidiary, Hurray! Holding Co. According to sources, Ku6.com will be merged with Hurray! Holding and Li Shanyon, CEO of Ku6.com will be the president of the new company. Ku6.com has approximately 20 million daily unique visitors and 250 million daily page views. Shanda Interactive Entertainment Ltd. offers entertainment content including massive multi-player online role-playing games and advanced casual online games.

Sina Corporation raises US$ 180 million in private equity investment
27 November 2009

19 17,086 3,317

31 28,918 8,187

63.2 69.2 146.8

41 25,275 8,019

40 25,629 5,659

-2.4 1.4 -29.4

Sina Corp. has announced that three investment firms and management will invest US$ 180 million in the company. The three companies include Sequoia Capital, Fountain Vest Partners, and Citic Capital Holdings Ltd. According to the announcement the three companies will hold 9.4% stake in Sina Corp. after this investment. The amount of US$50 million will be invested by Sina’s management and the rest US$130 million by the three investment firms. Sina Corporation operates as an online media company and mobile value-added services provider in China. It operates through five business segments including SINA.com (online news and content), SINA Mobile (MVAS), SINA Community (Web 2.0-based services and games), SINA.net (search and enterprise services) and SINA E-Commerce (online shopping).

9 468 287

9 450 213

0.0 -3.8 -25.8

China Eastern Airlines Corporation Ltd. enters into agreement with Alibaba Group
25 November 2009

n.a n.a

1,006 359

Source: ir.airmedia.net.cn, * not in millions.

China Eastern Airlines Corporation Ltd. has entered into a partnership with Alipay, a subsidiary of Alibaba Group, for online ticket payment services. According to the partnership, Alipay will provide direct payment services for the online ticketing operations of China Eastern’s website. Alibaba’s Taobao.com will offer an online store for ticket sales for China Eastern’s flights. Alibaba Group, a leading online ecommerce website operator.

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CHINA MEDIA MONITOR

Giant Interactive Group Inc. announces its financial results for Q3 2009
24 November 2009

China Finance Online Co. Ltd. announces its financial results for Q3 2009
23 November 2009

The online gaming company, Giant Interactive Group Inc. has announced its financial results for Q3 2009. The company generated total revenue of CNY 290.2 million, an annual increase of 9.4%. Its net income increased by 47.2%, reaching to CNY 197.4 million in Q3 2009. The company announced that it registered 1.1 million active paying accounts, 1.3 million peak concurrent users and 426,000 average concurrent users for the period. Giant Interactive Group Inc. is a leading online game developer and operator in China. It operates multiple games including ZT Online, ZT Online Green Edition and Giant Online.
Particulars (CNY million) Online Game Overseas licensing Other Total Net Revenue Net income Source: ga-me.com Q3 2008 264.3 0.8 0.0 265.2 134.1 Q3 2009 287.5 2.6 0.0 290.2 197.4 % Change 8.8 225.0 -43.7 9.4 47.2

For Q3 2009, China Finance Online generated net revenues of US$ 14.6 million, an annual decline of 4.3%. It generated 78% of its revenues from subscription services. Brokerage related services segment contributed 9.5%. The company recorded 13.1 million registered users and 112,000 active paid individual subscribers for the period. China Finance Online provides online financial and listed company data, information and analytics in China. It operates two websites: jrj.com and stockstar.com. Through its subsidiary, Shenzhen Genius Information Technology Co. Ltd, it provides financial information database and analytics to institutional customers. Another subsidiary, Daily Growth Investment Company Ltd. provides securities brokerage services for stocks on Hong Kong Stock Exchange.
Particulars (US$ million) Subscription services fees paid by individual customers Revenue from mobile value added services Subscription service fees paid by institutional customers Advertising-related business Brokerage related services Others Net Revenue Net income (loss) Net margin (%) Source: ir.chinafinanceonline.com Q3 2008 Q3 2009 % Change

13.4 0.2 0.4 0.8 0.5 0.0 15.2 4.8 31.6

11.4 0.3 0.4 1.1 1.4 0.0 14.6 (1.0) -6.9

-14.9 47.1 3.9 46.1 178.8 14.3 -4.3 -120.8

51job Inc (financial results for Q3 2009)
23 November 2009

51job.com Inc. has announced the financial results for Q3 2009. The company generated total revenue of CNY 219.6 million, an annual increase of 5.1%. Online recruitment services contributed 41% of revenues in Q3 2009. Print advertising and other recruitments services segments contributed 35% and 23.9% respectively. Its net income increased by 27%, reaching to CNY 35.9 million in Q3 2009. The company recorded 3,213 print advertising pages and 91,167 unique employers. 51job, Inc. provides integrated human resource services in China, especially recruitment related services. Its products are 51job Weekly in print and online recruitment portal; 51job.com.
Particulars (CNY million) Print Advertising Online Recruitment services Other Total Revenue Net income Net margin (%) Q3 2008 83.2 77.7 48.2 209.0 28.3 13.5 Q3 2009 77.1 90.1 52.4 219.6 35.9 16.3 % Change -7.3 16.0 8.7 5.1 26.9

The9 Ltd (financial results for Q3 2009)
23 November 2009

The9 Ltd. has announced its financial results for Q3 2009. The company generated total revenue of CNY 26.9 million, an annual decline of 93.8%. Online gaming contributed approximately 96% of revenues in Q3 2009. Its quarterly net loss was CNY 71.8 million. The9 Limited is a leading China based online game operator and developer. It offers MMORPGs and advanced casual games including Soul of the Ultimate Nation, FIFA Online 2 and Atlantica.

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CHINA MEDIA MONITOR

Particulars (CNY million) Online Game Services Game operating support, website solutions and advertisement Other Total Revenue Net income Source: the9.com

Q3 2008 429.3 93.3 1.6 431.1 80.0

Q3 2009 25.7 0.1 1.1 26.9 -71.8

% Change -94.0 -99.9 -31.3 -93.8 -189.8

Particulars (CNY million) Online Game services Advertising services Wireless value-added services and others Total Revenue Net income Source: corp.163.com

Q3 2008 675.1 113.0 18.5 806.6 313.3

Q3 2009 775.1 86.0 18.3 879.5 393.8

% Change 14.8 -23.9 -1.1 9.0 25.7

eLong, Inc. (financial results for Q3 2009)
23 November 2009

Perfect World announces its financial results for Q3 2009
16 November 2009

The online travel company eLong, Inc. generated total revenue of CNY 103.2 million, an annual decline of 14.7%. Hotel commissions account for 67% in Q3 2009 totaling CNY 68.6 million, followed by air ticketing commissions and other segments with 24.5% and 9.0% share respectively. Its net income declined annually by 52%, reaching to CNY 7.5 million in Q3 2009. It offers a database of 9,300 hotels in 80 cities in China and of 1,00,000 international hotels in 100 countries worldwide.
Particulars (CNY million) Hotel Commissions Air ticketing commissions Other Total Revenue Net income Source: elong.net Q3 2008 65.2 19.9 4.9 90.0 15.5 Q3 2009 68.6 25.3 9.3 103.2 7.5 % Change 5.2 27.1 89.8 14.7 -51.6

Perfect World Co. generated total revenue of CNY 590.0 million (annual increase of 54.5%). Revenue segmentation: online game operations (82%); overseas licensing (10%); and film and television services (7.7%). Its net income increased annually by 45.4%, reaching to CNY 298.0 million in Q3 2009. The company recorded 713,000 average concurrent users and 1.6 million active paying customers for the period. Perfect world Co. is an online game developer and operator. It develops online games based on proprietory game engines and game development platforms. Its game portfolio includes MMORPGs: Perfect world, Legend of Martial Arts and online casual game: Hot Dance Party.

Particulars (CNY million) Online Game operations Overseas Licensing revenues Film and Television revenues Total Revenue Net income Source: pwrd.com

Q3 2008

Q3 2009

% Change

324.5 57.3

485.9 58.8 45.3

49.7 2.6

381.8 198.8

590.0 289.0

54.4 45.4

NetEase.com, Inc. announces its financial results for Q3 2009
18 November 2009

NetEase.com, generated total revenue of CNY 879.4 million, an annual increase of 9.0%. Online games accounted for 88% in Q3 2009, totaling CNY 775.1 million, followed by advertising and wireless value-added services, with 9.8% and 2.1% share respectively. Its net income increased by 25.7%, reaching to CNY 313.3 million in Q3 2009. NetEase.com is a leading China based internet and online game services provider. It offers online games, wireless value-added services and internet portal services.

Kong Zhong Corp. announces its plan to acquire literature website
13 November 2009

KongZhong Corporation has plans to acquire zhulang.com, a literature works website. The website has approximately 5 million registered users and 1 million daily visitors (September 2009). KongZhong is a mobile internet company in China.

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CHINA MEDIA MONITOR

Ctrip.com (financial results for Q3 2009) Sina Corporation announces its financial results for Q3 2009
24 November 2009 11 November 2009

Sina Corporation generated net revenues of US$ 96.4 million (annual decline of 8.5%). Advertising services contributed 66.2% (Q3 2009) followed by mobile related services with 32%. Net income declined by 10.6% to US$ 16.9 million.
Particulars (US$ million) Advertising Mobile related Other Net Revenue Net income Net Margin (%) Source: corp.sina.com.cn Q3 2008 76.2 27.1 2.1 105.4 18.9 17.9 Q3 2009 63.8 30.9 1.7 96.4 16.9 17.5 % Change

Ctrip.com International generated revenues of CNY 583 million, an annual increase of 47%. Hotel reservation services contributed approximately 45% of revenues (air ticketing, packaged tour and others segments contributed 41.3%, 9.4% and 4.3% respectively). Its net income reached CNY 190.9 million in Q3 2009. Ctrip.com International Ltd. is a China based leading travel service provider of hotel accommodations, airline tickets and packaged-tours.
Particulars (CNY million) Q3 2008 186.0 166.4 28.4 16.2 397.5 104.5 26.3 Q3 2009 262.3 241.1 54.7 25.2 583.4 190.9 32.7 % Change 41.0 44.9 92.6 55.6 46.8 82.7

-16.3 14.0 -19.0 -8.5 -10.6

Hotel Reservation Air-Ticketing Packaged tour Others Total Revenue Net income Net margin (%) Source: ir.ctrip.com

Tencent Holdings (financial results for Q3 2009)
11 November 2009

Tencent Holdings generated total revenue of CNY 3,368.9 million, an annual increase of 66.4%, and an increase of 17.0% from Q2 2009. internet services accounted for 77.8%; mobile and Telecommunications and online advertising segments contributed 13.2% and 8.7% respectively. Its net income increased quarterly by 19.3%, reaching to CNY 1,433.2 million in Q3 2009. It recorded 1,057.0 million registered instant messaging user accounts, 484.9 million Active IM user accounts, 75.5 million peak simultaneous online user accounts for IM services, 5.7 million peak simultaneous online user accounts of QQ Game portal for the period. IVAS paying subscriptions and MVAS paying subscriptions were 47.9 million and 17.7 million respectively.
Particulars (CNY million) Internet value added services Mobile & Telecommunications value added services Online advertising Others Total Revenue Net income Net margin (%) Q3 2008 Q3 2009 % Change

TripAdvisor acquires travel search engine, Kuxun.cn
02 November 2009

TripAdvisor.com has announced the acquisition of Kuxun.cn. TripAdvisor is owned by Expedia Inc. and operates a travel-review website, DaoDao.com, a localised reviews and community site for Chinese travelers. It also plans to invest US$ 50 million in China over the next two years. Daodao.com had approximately 4 million unique visitors (September 20090. Kuxun.cn is a Beijing based travel meta-search engine, which allows users to compare airfares and hotel room prices from various providers.

Telecom
KongZhong Corporation (financial results for Q3 2009)
05 November 2009

1,400.6 372.5 249.1 2.3 2,024.5 745.3 25.5

2,622.6 446.2 293.6 6.6 3,368.9 1,433.2 42.5

87.2 19.8 17.9 187.0 66.4 92.3

KongZhong Corporation. generated total revenue of US$ 35.1 million, an annual increase of 39.8%. Wireless value added services contributed approximately 72.4% totaling CNY 25.4 million, followed by mobile games and wireless internet services segment, with 23.4% and 4.3% share respectively. Its net income was US$ 4.5 million (from net loss of US$21.6 million in Q3 2008). KongZhong

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CHINA MEDIA MONITOR

Corporation provides wireless value added services thro reless through WAP, multimedia messaging service, JAVA, short messaging service and other related platforms. It operates three wireless internet sites: Kong.net, Ko.cn and cn.NBA.com.
Particulars (US$ million) WVAS Mobile Games Wireless internet services Total Revenue Net income Key ratios Net margin (%) Source: corpasia.net 2008 22.1 2.4 0.6 25.1 (21.6) 2009 25.4 8.2 1.5 35.1 4.5 12.8 12 % Change 14.9 241.7 1250.0 39.8 120.8

fixed line subscribers and 943,000 broadband, voice and IPIP TV subscribers (August 2009). City Telecom (H.K.) Ltd. is a provider of residential and corporate fixed network and international telecommunications services in Hong Kong.
Particulars (HK$ million) International Telecommunications services Fixed Telecommunications network services Other Total Revenue EBITDA Net income Key ratios EBITDA Margin (%) Net margin (%) Geographical revenue Segmentation Hong Kong Canada Source: citigroup.com.hk 2008 2009 % Change

297.6

253.0

-15.0

1,033.7 25.0 1,356.3 378.1 125.2 29.0 9.2

1,250.7 41.5 1,545.2 508.1 212.8 34.4 13.8

21.0 66.0 13.9 34.4 70.0

City Telecom (H.K.) Ltd. announces its financial results for year ending August 2009
05 November 2009

1,281.1 21.9

1,461.7 16.5

14.1 -24.7

City Telecom (H.K) has announced financial results for the year ending August 2009. The company generated total revenue of approximately HK$ 1.3 billion an annual billion, increase of 14% (81% from fixed telecoms network services s and the remainder from international telecommunications services). It generated net income of HK$ 212.8 million with the net income margin of 14% in the year. Hong Kong contributed 95% of revenue with the rest from Canada. City Telecom announced that it has approximately 1.6 million

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Share Price Performance

Company name

Reuters Code

Bloomberg Code

Currency

Current price 1 mth

% Change 6 mth 12 mth

Diversified Media
Sing Tao News Corporation Limited TOM Group 1105.HK 2383.HK 1105:HK 2383:HK HK$ HK$ 0.6 0.7 7.4 16.7 34.9 55.6 78.5 164.2

Broadcasting
Phoenix Satellite Television Holdings Shaanxi Broadcast & TV Network 2008.HK 600831.SS 2008:HKG 600831:SHH HK$ CNY 2.1 8.3 11.9 6.7 72.5 3.5 213.6 65.8

Publishing
Ming Pao Enterprise Corp Ltd Next Media Limited 0685.HK 0282.HK 685:HK 282:HKG HK$ HK$ 1.2 1.1 5.4 2.9 2.6 -18.0 -1.7 10.5

Internet
Baidu Alibaba i-Cable Communications Shanda Interactive Entertainment Sina Corporation Sohu.com Inc. Tencent Holdings Limited BIDU.O 1688.HK 1097.HK SNDA.O SINA.O SOHU.O 0700.HK BIDU:US 1688:HK 1097:HK SNDA:US SINA:US SOHU:US 700:HK US$ HK$ HK$ US$ US$ US$ HK$ 442.2 17.6 1.0 50.2 44.7 56.0 139.0 1.6 -4.1 7.4 8.22 7.3 -21.5 -5.1 76.1 19.6 30.8 -5.9 55.0 -3.1 61.8 256.5 320.1 92.5 116.0 63.7 31.0 231.7

Online Gaming
China Mass Media Corporation Giant Interactive group Inc Kingsoft Corporation Limited NetDragon Websoft Inc. CMM.P GA.N 3888.HK 0777.HK CMM:US GA:US 3888:HK 777:HK US$ US$ HK$ HK$ 3.0 7.2 6.0 4.5 -27.5 -4.8 -20.0 -12.6 -14.3 -5.7 6.6 -16.3 50.0 16.6 187.6 73.5

Outdoor Advertising
Clear Media VisionChina Media 0100.HK VISN.O 100:HK VISN:US HK$ US$ 3.6 9.3 -5.1 -9.5 16.7 56.1 78.0 74.0

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CHINA MEDIA MONITOR

Deal Sheet

A summary of key deals and joint ventures.

Date
Nov-09

Sector
Online Travel

Investor
TripAdvisor.com

Investee
Kuxun.cn

Terms
n.a

Details
TripAdvisor.com, a travel-review website, acquired Kuxun.cn. a Beijing based travel meta-search engine. Ku6.com is an online video website. It has approximately 20 million daily unique visitors and 250 million daily page views Xinhua Sports and Entertainment Ltd. sold its stake in Shanghai Hyperlink Market Research Co. Ltd. to INTAGE Inc. Taiwan Mobile acquired Kbro Co., Ltd, a Taiwan-based cable-TV operator, for NT$56.8 billion.

Nov-09

Online

Shanda Interactive

Ku6.com

n.a.

Oct-09

Entertainment

INTAGE Inc.

Xinhua Sports and Entertainment Ltd

n.a

Sep-09

Telecoms

Taiwan Mobile

Kbro Co., Ltd

NT$56.8 billion (NT$32.8 share swap and NT$24 billion debt) 40% stake

Sep-09

Telecoms

Chunghwa Co., Ltd

Telecom Chunghwa Investment Co., Ltd

Chunghwa Telecom Co., Ltd acquired a 40% stake in Chunghwa Investment Co., Ltd from Yang Ming Marine Transport Corp for NT$759 million. Capital Research and Management Company raised its stake in China Telecom Company Ltd from 7.85% to 8.13%. Ctrip.com International Limited raised its stake in ezTravel.com from 20% to more than 50%. Ctrip.com International Ltd provides hotel accommodation and airline tickets online in China. ezTravel.com is a major travel services provider in Taiwan. Fosun International Ltd, a Chinese conglomerate, raised its stake in Focus Media Holding Ltd from 26.14% to 30%. Focus Media Holding Ltd operates in outdoor advertising in China. Fosun International Ltd operates in pharmaceuticals, property development, steel, mining, retail, services and strategic investments. Qin Jia Yuan Media Services Company Ltd. acquired a 90% stake in Triangle Marketing. Qin Jia Yuan Media Services Company Ltd operates in the concept development, production and distribution of programmes for prime time broadcasting. Triangle is a marketing services agency based in Hong Kong. Star Publications, based in Malaysia, publishes, prints and distributes newspapers and magazines. 701Sou, launched in November 2008, provides online directory search services in China through its 701Sou.com website. Ctrip.com International, Ltd provides online travel services for accommodation, airline tickets and package tours in China. Home Inns & Hotels Management Inc. develops and manages economy hotels in China under the Home Inn brand.

August-09

Telecoms

Capital Research and China Telecom Management Company Company Ltd.

n.d.

August-09

Online Travel

Ctrip.com International ezTravel.com Ltd.

n.d.

July-09

Outdoor Advertising

Fosun International Ltd

Focus Media Holding Ltd

n.d

July-09

Television Broadcasting

Qin Jia Yuan Media Triangle Marketing Services Company Ltd.

HK$6.2 million

June-09

Publishing

Star Publications

701Sou Pte Ltd

S$5.0million

May-09

Online Media

Ctrip.com International, Home Inns & Hotels Ltd (China) Management Inc. (China)

HK$50 million (additional 9.52% stake)

April-09

Telecoms

China Mobile (China)

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

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CHINA MEDIA MONITOR

Date
April-09

Sector
Publishing

Investor

Investee

Terms
US$145 million (100% stake)

Details
Pearson PLC, an international media company, engages in education, business and consumer publishing in the UK. Wall Street English is a Chinese subsidiary of Wall Street Institute and operates 39 English-language training centres in 7 Chinese cities. China Broadband Ltd. provides cable broadband services and publishes digital and analogue programme guides in the Shangdong province of China. AdNet Media Technologies Co. Ltd. is a Beijing-based provider of media advertising content to Internet cafes.

Pearson PLC (United Wall Street English Kingdom) (China)

April-09

Broadband

China Broadband, Inc.

AdNet Media Technologies Co. Ltd.

n.d

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CHINA MEDIA MONITOR

Data

Newspaper and magazine circulation data

2009
Newspapers Magazine Source: National Bureau of statistics of China

July
1,353,522 80,788

(Circulation 000’) August
1,394,128 83,615

September
1,296,198 77,769

July
-4.2 -11.8

% Change August
3.0 3.5

September
-7.0 -7.0

Mobile subscriber data

Particular
Handset Volume (million)* Mobile subscribers (000')**

Q1 2008
50 574,634

Q2 2008
45 600,757

Q3 2008
49 624,046

Q4 2008
39 641,230

Q1 2009
45 670,331

Q2 2009
43 695,199

Q3 2009
47 719,838

Source: * Nokia website; ** National Bureau of statistics of China

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