|Expand the scope for cross media advertising campaigns
We will endeavor to maintain the growth of our existing businesses and expand into diversified new businesses. The Group will continue to establish sales offices in different cities in the PRC to expand our sales network, as well as to strengthen our sales and advertising teams in order to reinforce our leading position in the printed media on high-speed trains in China. Moreover, with the commencement of the four main railway routes, namely Beijing-Shijiazhuang railway, Shijiazhuang-Wuhan railway, Ningbo-Hangzhou railway and Harbin-Dalian railway in the future, the Group will also increase the number of route-specific supplements of our printed media, which will be instrumental to the Group’s sustainable growth in the development of advertising business on the railway network in China.
The Group has developed a diverse advertising platform of printed media, and obtained an exclusive right of “東方養生”(Ever Green) on first class cabins of Hainan Airlines as a contracted operation partner, through the establishment of a joint venture with Hainan Airlines Xinhua Culture Group under the Hainan Airlines Group. Hence, the Group has secured a new media channel from the joint venture. This will also strengthen high-end customer base and provide additional income to the Group. Meanwhile, the Group also endeavored to develop new media business. In order to expand into advertising business related to television, the Group cooperated with a directly owned subsidiary of China Central Television (“CCTV”), and obtained the production rights of “地理．中國”(Geographic China), one of the programmes of CCTV‘s Science & Education Channel (CCTV-10). This cooperation will further expand the Group’s advertising platforms and customer base. It is expected that this new business can attract high-end advertising customers and generate substantial revenue for the Group in the coming years.
In addition, the Group entered into the cooperation agreement with Beijing Ouguan Business Service Limited ("Beijing Ouguan"), which engages in media production, at September 2013, for the joint investment, production, marketing and distribution of a movie. Pursuant to the cooperation agreement, the Group and Beijing Ouguan shall each invest RMB30 million, with a total investment amount of RMB60 million. Through engaging in movie business, the Group can expand its business platform and expose itself to a wider scope of potential clients with the rapid development of movie industry. The Group believes that the movie together with its ancillary products and marketing activities would provide more advertising channels, and bring additional revenue and business.