Dr. Anita Leung, Chief Executive Officer of the Group said, "China Women's News is a national newspaper and the circulation is growing steadily. Women play an important role in China, and with the growing number of career women who are enthusiastic to pursue knowledge, China Women's News maintains a strong circulation. TV drama is a favorite of women, and likewise China Women's News is a preferred publication for women who are in charge of family spending. This provides a good opportunity for the Group to solicit advertisers and to expand the advertising platform of the Group. This will also help boost the ad spend of the Group's existing clients without incurring much operating expenses."
Dr. Leung further discussed the Group's acquisition of exclusive global permanent adaptation rights to the Wesley novel series written by Ni Kuang. As good story lines are highly in demand these days, the addition of the novel series to the Group's library of scripts will benefit its TV drama production related business. The Group's collaboration with China Women's News is not restricted only to advertising rights, the value of which will increase with the paper's advertising rates, but also covers adaptation rights to the real life stories of women featured by the newspaper into TV dramas or materials for other TV programs.
The Group will also launch joint public relations functions with China Women's News. The first function will be a global Chinese women's contest tentatively entitled "Excel Both in Family and at Work". The Group intends to make an application to the relevant governmental authorities this year so as to obtain approval in time for this function to be held next year. Large scale public relationship events like this can enhance the branding of both parties and at the same time provide valuable business opportunities. In this age of multi-media, advertisers are keen to sponsor large scale functions as they are constantly in the lookout for new advertising channels to promote their products and services. Dr. Leung expects such functions to be broadcast by major media network and to generate sponsorship revenue of not less than RMB5million.
With the Group's financial year end falling in September, revenue generated from this exclusive right will only be booked in the last quarter of the financial year. Based on agreements signed as of today, revenue related to advertising and marketing planning will contribute at least 2% to 3% of total revenue of the Group.
Dr. Leung went on to say that the development of non-TV media platform also benefits the distribution and production of the Group's core TV drama related business. The obvious synergy effect is a major factor contributing to the success of the Group in this competitive industry. As we are now in an era of multi-media, companies with access to only one media segment will lose out in competitiveness and industry dominance.
About Qin Jia Yuan
Qin Jia Yuan Media Services Company Limited (HKEx: 2366) is a China-focused one-stop shop for TV media services, providing integrated programme, distribution, advertising and marketing and public relations services to production houses, advertising agencies and advertisers. The Group was listed on the main board of the Stock Exchange of Hong Kong on June 30, 2004 following a successful initial public offering. Its strategic shareholders include Aegis Group plc, a public company listed on the London Stock Exchange and one of the world's five largest media groups.