I am delighted to announce that for the fifth consecutive year since the Group went public, we have recorded an annual net profit growth of over 26%. In 2008, we experienced a profit growth by 56%. The outstanding achievement was attributable to our committed and hard-working staff as well as China’s open-door policy. China’s entry into the World Trade Organization (“WTO”) and the implementation of the “Mainland and Hong Kong Closer Economic Partnership Arrangement (“CEPA”)” have brought promising opportunities for Hong Kong companies, putting them in a favourable position to engage in TV production and media advertising businesses in China. As such, the Group has successfully operated exclusive advertising agency rights of seven domestic TV channels in 2008, which, together with the cooperation with nine domestic TV stations in connection with the production and procurement of TV programs, have brought synergistic effects, enabling the Group to achieve remarkable improvements in turnover, net profit and working capital.

The whole world is impacted by the current financial tsunami. Export of China will inevitably display a downturn that results in an economic slow down. Nevertheless, with the State support and policies to encourage domestic consumption, it is generally believed that China may be affected to a much lesser extent. According to past experience, the entertainment industry could often withstand economic downturns. Free TV entertainment programs are the mental nourishment needed by the audience in China which accounts for more than 95% of the population. Being a one-stop services provider focused in China market with TV entertainment programs production and consumer advertising as its core businesses, the Group is cautiously optimistic about the business outlook. The Group will seize the opportunities and adopt a dual-core development strategy of establishing a powerful TV advertising agency platform while striving to become a leading TV program supplier. By demonstrating its competitiveness in creating a winwin situation for itself, TV stations, advertisers, and audience, the Group will continue to expand the TV production and advertising service platform under its unique operating model.

Indeed, the economy was badly hit and the extent of pressure on the PRC business faced by the enterprises is still uncertain. The Group will adopt a prudent investment strategy under a proactive operating principle to develop its core business. Meanwhile, on behalf of the Board of Directors, I would like to express my appreciation and respect to all staff for their hard work and their willingness to regard the interests of themselves and the Group as one, and extend my sincere thanks to all domestic TV stations which have longterm collaboration with us, overseas distribution partners, advertising customers and sponsors for their support.

Wong Yu Hong, Philip
Chairman