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Profit Amounted to Approximately HK$10 Million , Improved Profit from Operations to Turnover Ratio against LastYear and Declaration of Interim Dividend of HK0.025 Cent HONG KONG , May 2, 2012 , /PRNewswire-Asia/ -- Qin Jia Yuan Media Services Company Limited(Stock Code: 2366, hereinafter referred to as "QJY" or"the Group") hereby announces the interim results for theperiod ended 31 March 2012 as follows: -- Turnover was HK$192.6 million -- Basic earnings per share was HK0.62 cent -- Profit from operations for the period of HK$70.4 million , represented 36.5% of turnover ( 31 March 2011 : 23.3%, 30 September 2011 : 15.2%) -- Adjusted profit for the period of HK$30.0 million , represented 15.6% of turnover (excluding one-time financial impact from convertible noterestructuring) ( 31 March 2011 : 16.2%, 30 September 2011 : 7.3%) -- Adjusted gearing ratio of 28.3% (excluding one-time financialimpact from convertible note restructuring) ( 31 March 2011 : 39.8%, 30 September 2011 : 34.3%) According to the Group's dividend policy, an interim dividend ofHK0.025 cent is declared to the shareholders in scrip form withcash option. The overall turnover and net profit dipped as compared to thecorresponding period of the previous year. However, excluding thefinancial effects of the non-operating activities, including butnot limited to the accounting treatment of the convertible notes,the profit from operations to turnover ratio recorded for theperiod has improved as compared to last period as stated above. In respect of the major/core business, namely investment in andplanning, production and distribution of TV series, since itsfoundation, the Group has always been in partnership withprovincial TV stations for the production of mid-scale televisionseries, which are then distributed on local TV channels in variousprovinces and cities in China. The Group has not had the opportunity to partner with ChinaCentral Television for the investment in as well as the productionand distribution of large-scale TV series, nor has the Groupbroadcasted the TV series on major network comprising dominantsatellite channels. With the support of the national policy as wellover ten years of experience and exposure in the operation of TVprogram production in China , the Group managed to make a major business breakthrough in thebeginning of 2011. The Group formed a long-term partnership withChina TV Program Production Centre Company Limited, a subsidiary ofChina Central Television, (hereafter referred to as the "ChinaTV") for the investment in and planning, production anddistribution of TV series. As a result, the Group has shifted itsoperational focus onto the partnership with China TV by workingwith major provincial TV stations to produce large-scale andhigh-quality TV series that will be premiered on China CentralTelevision's channels and major provincial satellite channels.Clearly, the rate of coverage and ratings of premiere on majorsatellite channels of China Central Television are far moresuperior, and it is expected that the turnover and profitability ofthe Group's major business will further improve. Unfortunately, thetime span from between the planning and the broadcast of acollaborative project with China TV is generally no less than twoyears. With various TV series projects with China TV stilloutstanding in the first half of 2012, the partnership has not madeadditional contribution to the Group's performance for the firsthalf of the year. Over 50% of the Group's turnover in 2009, 2010 and 2011 wasattributable to the considerable sale of the Group's film library.The coming unification of three networks (internet,telecommunications and cable TV) means that media content will befavored over form. The competition between the traditional platformof television and new media platforms will become fiercer inserving as distribution networks. Since the Group has thecapability of producing and distributing large-scale andhigh-quality TV series, this will increase the distributive valueof the Group's film library. The corporate strategy during the yearwas to focus on its major business, and hence, there is noshort-term plan to sell the Group's film library. A long-term viewof management and operations has been undertaken to ensure thatshort-term gains are not made at the expense of long-term growthand development. Strengthening the Group's TV series assets is ofutmost priority. 2012 will be a year for strengthening the Group's core business andthe results for this year reflects a "spring board"period for the Group. While the Group spent great efforts in defining its businessstrategies, its cross-media platform, which includes TV and outdooradvertising, marketing planning and public relations activitiesundertaken by the subsidiaries of the Group, has shown a stabledevelopment and recorded a profit. This has had a positive effecton the maintenance of the core operations. Dr. Leung Anita Fung Yee Maria , the Chairman of the Board and Chief Executive Officer of theGroup, reported that in the second half of 2011, the threat ofrecession hanged over the global economy and the securities marketwas vulnerable. Under such environment of anemic investmentsentiment, the Group announced a rights issue and raised nearly HK$300 million. The proceeds were intended for reducing debts, including but notlimited to redeeming the convertible bond contracts entered into bythe Group by the end of the year, and for developing the Group'smainstream businesses. The rights issue was completed in February 2012 , recording an over-subscription of nearly 6 times. This reflectedthe recognition of the public and the Group's shareholders of theuse of proceeds and their confidence in the Group's businessprospects. Upon the successful completion of the rights issue, the Groupsigned an agreement with First Media Holdings, Ltd. to redeem theconvertible bonds issued to it. The Group also entered intoagreements with each of Smart Peace Development Limited and StarGroup International Investment Limited to amend the terms of theconvertible bonds issued to them to enable the Group to redeem theoutstanding principal amount of the convertible bonds. It isbelieved that this will boost investors' confidence and have apositive effect overall. "Despite the weak market sentiment, the rights issue wascompleted with an over-subscription, giving the Group confidence tocontinue to develop its mainstream businesses. At a time when TVcontent is and will continue to be of utmost importance, themajority of the Group's resources will be devoted to contentprovision. The Group is taking a two-pronged approach to consolidate andstrengthen its cultural assets for content diversification and theenrichment of its film library: owing to the length of timerequired for making a TV series, the Group's strategy is toincrease the number of TV series co-produced with China TV andmajor provincial TV stations, and to acquire quality TV series andfilms domestically and internationally. The government's support inChinese television production is a way to protect and advocate theChinese culture, and it is believed that foreign productions arealso supported in order to broaden the horizons of the Chinesepeople and to enhance their knowledge of the world. In fact, thedemand for quality TV productions in China has always been significantly higher than the supply, and there isa huge development potential for quality productions on bothtelevision and new media. In response to the immense demand for TVcontent in China , the Group will emphasized on its two-pronged approach to produce,acquire and introduce domestic and foreign quality TV series, so asto consolidate the Group's position as a leading contentprovider," said Leung Anita Fung Yee Maria , the Chairman of the board and the Chief Executive Officer of theGroup. Also, the Group holds the adaptation right to the works of a numberof renowned writers, allowing the Group to generate revenue fromthe sale of such adaptation rights and the production of TV seriesbased on the adaptation, and thus make satisfactory net profits.With over a thousand works available for screen adaptation, theright contributes long-term value to the Group's assets and isundoubtedly the crown jewel for the Group's TV series productionthat adds to and consolidates the Group's mainstream business, andwas critical in increasing the long-term value of the Group'sassets. About Qin Jia Yuan Media Services Company Limited (Stock code:2366) Founded in 1995 and listed on the Hong Kong Stock Exchange in 2004, Qin Jia Yuan is a forerunner in the People Republic of China for multi-mediabusiness, as a one-stop shop providing excellent media contentproduction, which includes media advertising, outdoor advertisingand marketing campaigns. SOURCE Qin Jia Yuan Media Services Company Limited. The e-commerce company in China offers quality products such as China Food Grinding Machine , China Oscillating Granulator, and more. For more , please visit V Shaped Mixer today!
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