I hereby announce the results of the Group of a turnover of HK$742,234,000 with a net profit after tax of HK$54,468,000 for the financial year 2011.

The lower performance for the financial year 2011 as compared with last year was mainly due to the effective interest charged to the Group’s profit and loss account of HK$30,109,000 of the convertible notes issued by the Group during the global financial crisis in 2009. Furthermore, the uncontrollable suspension of operation of the Group’s large LED board in Beijing has caused an adverse ripple effect resulted in a negative performance on the overall outdoor advertising business of the Group. Fortunately, the Group’s principle operation, TV drama production and distribution, continued to deliver exceptional results. With the cross-media platform well established, the Group was able to weather the market fluctuation with such good level of security brought by this platform.

Despite the continual domination of the television media, the Mainland continues to witness the emergence of the new media as a new form of advertising. Throughout last year, with a steady and progressive acquisition plan in the Internet media, the Group was able to capitalize on this expanding new media opportunity. At the same time, not only did the income from the TV production and distribution business continue to improve, but extra revenue from the distribution of the exclusive broadcasting rights of quality TV dramas on the new media was also being realized. These rights are highly sought after in recent years and such market reception has given significant encouragement and support to the producers and suppliers of quality TV dramas to invest in the new media. In addition to the long-term co-operations in production and distribution with key TV stations across the nation as well as the cooperation in the production of 6,000 hours/episodes of TV programs which the Group has entered into with the provincial radio, film and television enterprise of Fujian prior to our listing, the Group was able to further engage in a four-year long TV drama production cooperation agreement with 中國電 視劇製作中心有限責任公司 (China TV Program Production Centre Company Limited*) in 2011. This should further fortify the Group’s position as one of the leading TV drama suppliers in the Mainland. The leases and sales of the broadcasting rights of our large film library together with the TV drama that we have invested, planned, produced and distributed would contribute to our stable income flow and outstanding results.

The 5th plenary meeting of the 17th Central Committee of the Chinese Communist Party held in October 2010 reiterated the key national policy of “Cultural Industry Promotion Program”. As a result, the enthusiasm for the development of the cultural industries will continue. The Group’s core business is to engage in the media services in relation to the domestic cultural industries. While the confirmation of the support to the industries will bring positive effect, the Group’s future development may be shadowed by the threat of another global economic recession, which has surfaced since September 2011. This may exert great pressure and impact on domestic and overseas small and medium enterprises in the coming year. However, with the rise in living and cultural standard of the Chinese, we believe the domestic cultural and entertainment enterprises will grow steadily and resiliently even if the global economic recession inevitably comes next year. The Group will remain extremely cautious but optimistic. We will capitalize on our edge in terms of human resources and extensive and practical experience of our TV drama production and distribution business. With our understanding of the policy and knowledge of the market, the Group is confident that the TV drama production and distribution business will continue to build on its remarkable growth in 2010 and 2011, and will deliver extraordinary performance in the future.

I wish to express my deepest appreciation to all the staff and domestic and overseas partners for their endless effort and support. We look forward to establish another new landmark together in the future.

Dr. Honourable WONG Yu Hong, Philip, GBS
Chairman