A fortnightly newsletter covering developments in the Chinese media industry. The newsletter is free and is also available for download at G2Mi.com. G2Mi.com is a leading website providing information and analysis on the global media industry.

1. China Media Monitor
| Fortnightly newsletter on the China Media industry | Issue No. 2, Published 4th May 2009 | Published by Heernet Ventures Limited (heernet.com) |
News
China Digital TV subscribers expected to reach 80.0 million in 2009
Hunan TV plans to launch television channel in Hong Kong
China set up rules for foreign financial information providers
Wenhui-Xinmin United Press Group launches live news broadcasting service
Perfect World and Runic Games form publishing agreement
Shanda Online and Razer form partnership
Hollywood Reporter form partnership with SAFRT
Tudou.com and China Film Group form partnership
China Unicom launches 3G services under the Brand “Wo”
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
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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
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2. China Media Monitor
News
Media provider, China Satellite Communications Corporation.
China Satellite Communications Corporation is one of
China’s leading telecom operators; it is a subsidiary of
China Digital TV subscribers expected to reach China Aerospace Science and Technology Corporation
80.0 million in 2009 (CASC).
Date 29 April, 2009
Government forecasts estimate that the number of digital Hollywood Reporter form a partnership with
television subscribers will increase to 80 million by end SAFRT
2009 (Source: China Electronic Chamber of Commerce). Date 27 April 2009
The government is pushing for digital terrestrial television to
The film industry trade magazine, Hollywood Reporter has
be available nationwide by 2012.
formed a content licensing partnership with Zong Yi
magazine. The latter is owned by the State Administration
Hunan TV plans to launch television channel in of Radio, Film and Television (SARFT). Through the
Hong Kong partnership, Hollywood Reporter has licenced its content to
Zong Yi magazine on an exclusive basis. Zong Yi is a
Date 21 April, 2009
fortnightly entertainment trade magazine with a circulation
Television broadcasting group, Hunan Satellite Television is of approximately 50,000.
launching a Pay TV channel in Hong Kong; it is its first
channel outside China. The company has plans to expand
distribution to other Asian countries including Singapore, SEEC Media Group Limited declared its annual
Malaysia, Phillippines, Indonesia, Vietnam, Japan and South financial results for the year 2008
Korea. Date 24 April, 2009
The leading Chinese advertising media company, SEEC
China set up rules for foreign financial information Media Group, announced its annual results (year ended
providers December 2008). The company increased revenues by 65%
to HK$ 307.2 million but made a net loss of HK$ 14.4
Date 30 April 2009
million.
The Chinese government has issued new regulations for
foreign financial information providers (such as Thomson HK$ (000') 2007 2008 % Change
Reuters, Bloomberg and Dow Jones). According to the new Advertising income 175,179 276,683 57.9
regulations, foreign financial information providers will not Books and Magazines sales 11,312 30,493 169.6
be allowed to operate newsgathering operations or agencies Total Revenue 186,491 307,176 64.7
in China. The regulations make a distinction between news EBITDA 20,936 7,825 -62.6
content that can be carried by traditional news agencies and Net Profit/Loss 6,141 -14,354
that offered by financial information providers. Source: company website
Wenhui-Xinmin United Press Group launches live Peoples Daily launches new English language
news broadcasting service newspaper
Date 29 April 2009 Date 21 April 2009
Shanghai-based newspaper publishing group, Wenhui- Communist Party controlled People’s Daily has launched a
Xinmin United Press Group has launched a live news new English language newpaper, The Global Times. It is the
broadcasting service through its website, Xinmin.cn. The second English language national newspaper in the country.
service is offered in partnership with the satellite service
© Heernet Ventures Limited. All Rights Reserved

3. China Media Monitor
Beijing Media Corporation Limited declared its Shanda Online and Razer form partnership
annual financial results for the year 2008 Date 22 April, 2009
Date 24 April, 2009
Shanda Online Holdings Limited, a wholly owned
The leading Chinese media Group, Beijing Media subsidiary of Shanda Interactive Entertainment Ltd and
Corporation Limited announced its annual financial results Razer, announced a partnership to promote Razer’s gaming
for the year 2008. The company increased revenues by 29% and lifestyle peripherals in China.
to CNY 1,081.1 million and net profit by 244.2% generating
CNY 34.5 million.
Tudou.com and China Film Group form partnership
CNY (000) 2007 2008 % Change
Date 20 April 2009
Total Revenue 837,767 1,081,116 29.0
EBIT 61,480 80,954 31.7 Online video website, Tudou.com and state controlled film
EBITDA 67,840 86,635 27.7
enterprise group, China Film Group Corporation have
formed a partnership to jointly invest in online media video
Net Profit 10,885 37,463 244.2
Source: company website
programmes. Tudou.com also formed partnership with
Xunlei.com and Coocaa.com to offer video and music
contents.
Internet
Taobao and UNIQLO form e-commerce partnership
Telecoms
Date 23 April, 2009
Taobao, an e-commerce company operated by Alibaba.com
formed a partnership with UNIQLO to launch the online China launches trial operation of mobile number
retailing of UNIQLO’s casual wear products in China. portability
UNIQLO is a casual wear brand of an apparel retail group, Date 30 April 2009
Fast Retailing Co. Ltd. UNIQLO will form a virtual store China’s Ministry of Industry and Information, through
on Taobao.com. Hainan Provincial Administration of Communication, has
launched the trial operations of mobile number portability in
Hainan region.
TripAdvisor launches Daodao.com
Date 23 April 2009
TripAdvisor, the leading tourism review website has China Unicom launches 3G services under the
launched its chinese website, Daodao.com. Daodao.com Brand “Wo”
offers local and hotels information and reviews to Chinese Date 27 April 2009
travellers. It offers data and reviews of about 18,000 chinese China Unicom, a leading telecom operator, has launched its
hotels. The website also provides additional services like 3G service brand, WO. The brand targets business people
pay-per-click advertising and display advertising to online and young professionals. The operator has constructed
travel agencies, hotels, restaurants and airline companies. WCDMA networks in Tier 1 cities including Beijing and
Shanghai. The company plans to complete the construction
of WCDMA networks in 55 cities by May 2009. It will
Perfect World Co., Ltd and Runic Games, Inc enter
formally launched the service in the country from
into publishing agreement
September, 2009.
Date 22 April, 2009
Perfect World Co., an online game developer in China and
Runic Games, Inc, an entertainment software developer in
the USA has entered into an agreement to publish
Torchlight, an MMOG (massively multiplayer online role-
playing game) in China.
© Heernet Ventures Limited. All Rights Reserved

4. China Media Monitor
China Mobile acquires 12% stake in Far EasTone
Telecommunications
China Telecom to invest CNY 26.0 billion in
Date 29 April 2009 Shanghai in next 2 years
The leading Chinese telecoms operator, China Mobile has Date 28 April 2009
acquired a 12% stake in the Taiwanese operator, Far
China Telecom has formed an agreement with the Shanghai
EasTone Telecommunications for a consideration of HK$
municipal government to invest CNY 26.0 billion over the
4.1 billion.
next 2 years to construct telecoms infrastructure.
China’s mobile subsbcribers base reaches 670.3
China Unicom plans to invest CNY 15.0 billion in
million in Q1 2009
next 5 years in Central China
Date 24 April 2009
Date 21 April 2009
According to Ministry of Industry and Information
China Unicom has signed a cooperation agreement with the
Technology, China has approximately 670.3 million mobile
government of Central China’s Hunan Province to invest
subscribers at the end of Q1 2009. The mobile subscriber
CNY 15.0 billion over the next 5 years to construct telecoms
base has increased by 29.1 million subscribers over the past
infrastructure in the region.
12 months. Fixed line subscribers declined to 335.3 million.
Mobile penetration rate has increased to 50.7% and fixed
line penetration rate has declined to 25.3%.
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5. 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$ 0.33 8.20 -4.35 -72.27
TOM Group 2383.HK 2383:HK HK$ 0.38 10.00 60.42 -18.09
Broadcasting
Hunan TV & Broadcast Intermediary 000917.SZ 000917:CH CNY 16.35 -2.25 89.24 -14.35
Phoenix Satellite Television Holdings 2008.HK 2008:HKG HK$ 1.06 47.22 68.25 -7.02
Shaanxi Broadcast & TV Network 600831.SS 600831:SHH CNY 9.35 1.63 62.05 -32.31
Publishing
Ming Pao Enterprise Corp Ltd 0685.HK 685:HK HK$ 1.09 -11.38 -12.80 -58.71
Next Media Limited 0282.HK 282:HKG HK$ 1.03 27.16 -20.16 -64.73
Internet
Baidu BIDU.O BIDU:US US$ 232.90 34.63 9.04 -36.30
Alibaba 1688.HK 1688:HK HK$ 9.20 28.13 113.95 -36.11
i-Cable Communications 1097.HK 1097:HK HK$ 0.61 19.61 38.64 -52.71
Shanda Interactive Entertainment Ltd SNDA.O SNDA:US US$ 47.83 29.94 79.95 39.49
Sina Corporation SINA.O SINA:US US$ 28.01 22.74 -13.52 -39.37
Sohu.com Inc. SOHU.O SOHU:US US$ 52.15 30.05 -2.08 -24.56
Tencent Holdings Limited 0700.HK 700:HK HK$ 69.00 20.00 30.93 33.85
Online Gaming
China Mass Media International
Advertising Corporation CMM.P CMM:US US$ 3.11 72.89 -29.87 -84.44
Giant Interactive group Inc GA.N GA:US US$ 8.27 21.08 24.55 -49.20
Kingsoft Corporation Limited 3888.HK 3888:HK HK$ 3.53 8.62 93.96 10.31
NetDragon Websoft Inc. 0777.HK 777:HK HK$ 5.23 27.87 78.50 -55.75
Outdoor Advertising
Clear Media 0100.HK 100:HK HK$ 2.34 31.46 103.48 -64.92
VisionChina Media VISN.O VISN:US US$ 5.37 -17.64 -48.95 -63.59
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6. China Media Monitor
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