Hong Kong, November 29, 2006 - Qin Jia Yuan Media Services Company Limited ("Qin Jia Yuan" or the "Company"; HKEx: 2366) announced the establishment of long-term collaboration with eight key TV media in Mainland China for TV drama production, procurement and sales, and distribution. The collaboration will initially call for an aggregate investment of RMB300 million for the production or procurement of 538 to 600 hours of TV drama in 2007.
Representatives from the eight TV media in Beijing, Dalian, Fujian, Guangdong, Harbin, Hubei, Jiangsu and Shanghai yesterday joined Qin Jia Yuan at a kick-off ceremony in Hong Kong. The ceremony was officiated by Mr Li Gang, Deputy Director, Liaison Office of the Central People's Government in the HKSAR. Mr Li pledged his support of the further advancement of PRC's cultural sector, and welcomed collaborations between Mainland and Hong Kong media.
Mr Yang Yu Bing, President of Shanghai East Shanghai International Media (Group) Company Limited, a subsidiary of the Propaganda Department of the CPC's Shanghai Committee, explained: "CEPA brings benefits to Hong Kong production companies in four main areas. First, in future, PRC and Hong Kong joint productions are considered as domestically produced drama series, and are eligible for direct broadcast rights. Second, the limit on the number of episodes (previously 40 episodes) of jointly produced drama is removed, which brings joint productions on a level race with Mainland productions. Third, the vetting of domestic productions engaging Hong Kong artists can be undertaken at first-level municipal SARFT departments. Fourth and finally, with relevant authorization, Hong Kong cable networks are allowed to set up trial points in Guangdong for the provision of network technical services."
The collaboration of eight TV media with Qin Jia Yuan came after the country's open-door policy to encourage joint investments by PRC and Hong Kong companies. It will help the Company tap the unfulfilled demand in the Mainland for premium quality TV drama. "The collaboration also came as a recognition of Qin Jia Yuan as an ethical media corporation, a reputation the Company earned after more than a decade of active participation in the country's development of TV media related services," added Mr Yang.
Dr Anita Leung Fung Yee, CEO, Qin Jia Yuan, remarked: "Our collaboration with the eight TV media in China represents a new foreign funded and managed business model, drawing the best from both worlds. We will combine our creative expertise with the rich talent and production resources of Mainland China, to create a win-win collaboration in the huge Mainland market. We are also confident that this collaboration will drive further growth for our complementary advertising, sponsorship and public relations operations.
"With a strong financial position, we do not have pressure on funding for the planned productions with the eight TV media. We also enjoy highly preferential terms in these collaborative agreements, with the right to determine the percentage shareholding (from absolute majority control to joint holding) in each TV drama project, which enables us to plan our investments with flexibility. We may also consider inviting the participation of overseas investors, who find the current CEPA preferential policies in favour of Hong Kong companies very attractive."
The key to the success of a TV drama production lies with the story script. It is therefore Qin Jia Yuan's ongoing strategy to further strengthen its library of scripts, which will become a major asset of the Company.
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.