BEIJING, Nov. 22 /PRNewswire-Asia-FirstCall/ -- China Mass
Media Corp. ("China Mass Media" or the "Company") (NYSE: CMM), a
leading television advertising company in China, today announced its unaudited financial
results for the third quarter ended September 30, 2010.
Third Quarter 2010
Highlights(1):
- Total net revenues were RMB54.8
million (US$8.2 million), a
decrease of 32.2% from the third quarter of 2009 and a decrease of
3.8% from the second quarter of 2010.
- Operating income was RMB12.5
million (US$1.9 million), an
increase of 241.5% from RMB3.7
million in the third quarter of 2009 and an increase of
54.5% from RMB8.1 million in the
second quarter of 2010.
- Net income was RMB6.4 million
(US$1.0 million), an increase of
59.3% from the third quarter of 2009 and an increase of 48.2% from
the second quarter of 2010.
- Net cash inflows from operating activities were RMB54.5 million (US$8.2
million), compared to net cash outflows from operating
activities of RMB397.0 million in the
third quarter of 2009 and net cash inflows from operating
activities of RMB41.2 million in the
second quarter of 2010.
(1) The U.S. dollar (US$) amounts disclosed in this press
release are presented solely for the convenience of the reader.
The conversion of Renminbi (RMB) into US$ in this release is
based on the exchange rate on September 30,
2010 as set forth in the H.10 statistical release of the
Federal Reserve Board, which was RMB6.6905
to US$1.00. The percentages stated are calculated based on
RMB.
Mr. Shengcheng Wang, Chairman and Chief Executive Officer of
China Mass Media, commented, "In comparison with the previous
quarter, total net revenues for the third quarter of 2010 decreased
slightly as price competition remained intense while demand in the
advertising market recovered ahead of the traditional peak season
starting from this September. The decrease in total net revenues on
a year-over-year basis was the result of our reduction of
investment in a number of CCTV-2 and CCTV-4 programs in 2010.
As a result of our prudent media selection strategy, we
successfully minimized the impact of the unfavorable conditions
related to CCTV-4 and were able to substantially improve our
profitability on both the operating and net level compared to the
prior quarter and the same period last year."
"The sales of our 'Daytime Advertising Package' and 'Television
Guide Package' during the quarter were still subject to severe
price competition which led to low pricing and low utilization in
July and August. However, we saw positive signs this
September through the addition of a number of new accounts.
We are optimistic that sales in the fourth quarter of 2010
will rebound in the traditional peak season."
"The sales performance of our 'Periodic China News Package' on
CCTV-4 continued to improve on the positive momentum generated last
quarter. The time slots of the 'Periodic China News Package' were
fully sold out in September. In addition, we have recently been
approved by CCTV to begin extending the length of our
advertisements from September to December
2010 with no additional cost. This will give us the
ability to source more clients seeking to maximize their
advertising spending on CCTV-4, and generate higher revenues and
profit during the traditional peak season in the fourth
quarter."
"In our production and sponsorship services business, we
continued to improve our service capabilities and integrated our
sales, production and public service sponsorship teams. As a
result, we captured a variety of opportunities related to
advertisement production and sponsorship for various public service
announcements. During the third quarter of 2010, we completed the
production of a number of new commercial advertisements and secured
several new clients for the sponsorship of public service
announcements. This led to a significant increase in revenues from
production and sponsorship services compared to the third quarter
of 2009, and helped drive the Company's overall margins higher.
We are also pleased the commercial we created for CCTV called
'Liquid Ink' has won another prestigious prize at the 'Great Wall
Awards' of the 17th China Advertising Festival."
"On November 8, 2010, CCTV hosted
its annual Prime Time Advertising Resource Auction Event for 2011,
where a total of RMB12.7 billion was
committed for advertising time slots on CCTV, representing a 15.5%
increase from RMB11.0 billion in
2010. We believe this has favorable implications for our
business as it indicates the continued strength in demand within
China's advertising market. It is
also a key indicator of specific high-growth sectors and regions
seeking CCTV exposure, upon which we will focus our premarketing
sales activities in the coming months.
"As a means to diversify our revenue streams and solidify our
market position, we have taken our first steps into outdoor
advertising. In October we entered into an agency agreement
with Goto Media, which owns advertising space in all major
high-speed railway stations in China. Currently there are 13 high-speed
railway stations in operation, featuring nearly 100 grand LED
screens and 1,000 advertising light boxes. We have already formed a
dedicated sales team to focus on the sales and marketing of our new
outdoor products. We expect this new line of business will be
an additional source of revenues and profits in the coming
year."
Mr. Eric Cheung, the Company's
Chief Financial Officer, added, "With RMB400
million of cash and cash equivalents on hand, another
RMB290 million in safe short-term
investments and no debt, our balance sheet remains healthy and
gives us the flexibility to invest in opportunities as they arise
while leaving ample room to issue a dividend at some point in the
future."
Third Quarter 2010 Financial Results
Revenues
Revenues from advertising agency services were
RMB46.6 million (US$7.0 million) in the third quarter of 2010, a
decrease of 41.6% from RMB79.8
million in the third quarter of 2009, and a decrease of 8.2%
from RMB50.8 million (US$7.5 million) in the second quarter of 2010.
Due to intense pricing competition, sales of the Company's "Daytime
Advertising Package" and "Television Guide package" both decreased
compared with the second quarter of 2010 and third quarter of 2009.
However, sales of the Company's "Periodic China News Package" on
CCTV-4 continued to rise from last quarter.
The decrease in advertising revenues from the third quarter of
2009 was mainly due to pricing pressure related to sales of our
"Daytime Advertising Package" and "Television Guide Package," along
with the Company's decision to reduce the number of programs for
which it sells advertising time on CCTV-2 and CCTV-4.
Revenues from production and sponsorship services were
RMB10.7 million (US$1.6 million) in the third quarter of 2010, an
increase of 278.2% from RMB2.8
million in the third quarter of 2009, and an increase of
20.9% from RMB8.9 million
(US$1.3 million) in the second
quarter of 2010. The Company continued to improve production
capabilities and proactively source new clients. Both the
sequential and year-over-year rise in revenues resulted from the
successful production of a number of new commercial advertisements
for clients and securing several new clients for the sponsorship of
public service announcements.
Operating costs and expenses
Cost of revenues was RMB32.0
million (US$4.8 million) in
the third quarter of 2010, a decrease of 50.9% from RMB65.1 million in the third quarter of 2009 and
a decrease of 2.3% from RMB32.7
million (US$4.8 million) in
the second quarter of 2010. The significant decrease in cost of
revenues from the third quarter of 2009 resulted from a decline in
media costs related to the Company securing fewer media resources
on CCTV-4. The slight decrease in cost of revenues as compared to
the second quarter of 2010 was mainly attributable to the Company
producing fewer public service announcements during the
quarter.
Sales and marketing expenses were RMB3.6 million (US$0.5
million) in the third quarter of 2010, a decrease of 7.7%
from RMB3.9 million in the third
quarter of 2009 and a decrease of 9.5% from RMB4.0 million (US$0.6
million) in the second quarter of 2010. The decreases from
the third quarter of 2009 and the second quarter of 2010 were due
to a decrease in sales commissions as a result of lower sales.
General and administrative expenses were RMB6.7 million (US$1.0
million) in the third quarter of 2010, a decrease of 16.3%
from RMB8.0 million in the third
quarter of 2009 and a decrease of 44.6% from RMB12.1 million (US$1.8
million) in the second quarter of 2010. The decreases
from the third quarter of 2009 and second quarter of 2010 were
mainly due to a write-back of bad debt provision after the Company
successfully collected a RMB2.4
million outstanding receivable from a client. In
addition, the professional service fees related to the Company's
listing application on the main board of the Hong Kong Stock
Exchange were lower than in the second quarter of 2010.
Operating income, as a result of the foregoing factors,
was RMB12.5 million (US$1.9 million) in the third quarter of 2010,
compared with operating income of RMB3.7
million in the third quarter of 2009 and operating income of
RMB8.1 million (US$1.2 million) in the second quarter of 2010.
The Company's operating margin was 4.5%, 14.2% and 22.8% for the
three months ended September 30,
2009, June 30, 2010 and
September 30, 2010, respectively.
Other expenses included an exchange loss of
RMB 3.3 million (US$0.5 million) recognized in the third quarter
of 2010 as the Company's functional currency, the RMB, continued to
appreciate against the USD since June
2010 while the Company maintained significant USD
deposits.
Income tax expense was RMB4.5
million (US$0.7 million) in
the third quarter of 2010, an increase of 315.2% from RMB1.1 million in the third quarter of 2009 and
an increase of 19.9% from RMB3.7
million (US$0.5 million) in
the second quarter of 2010. The Company's effective tax rate was
21.0%, 46.2% and 41.0% for the three months ended September 30, 2009, June
30, 2010 and September 30,
2010, respectively. The effective tax rates for the second
and third quarter of 2010 were higher than the PRC statutory tax
rate mainly due to approximately RMB4.5
million (US$0.7 million) and
RMB1.5 million (US$0.2 million) in intermediary services expenses
in connection with the application for a dual listing on the Hong
Kong Stock Exchange, and the exchange losses of RMB1.3 million (US$0.2
million) and RMB3.3 million
(US$0.5 million) incurred during the
respective quarters which were not tax deductible for our
operations.
Net income was RMB6.4
million (US$1.0 million) in
the third quarter of 2010, an increase of 59.3% from net income of
RMB4.0 million in the third quarter
of 2009 and an increase of 48.2% from RMB4.3
million (US$0.6 million) in
net income in the second quarter of 2010. The Company's net margin
was 5.0%, 7.6% and 11.8% for the three months ended September 30, 2009, June
30, 2010 and September 30,
2010, respectively.
Basic and diluted earnings per ADS for the third quarter of 2010
were RMB0.24 (US$ 0.037), compared with basic earnings per ADS
of RMB0.15 for the third quarter of
2009 and RMB0.17 for the second
quarter of 2010.
Each ADS represents 30 ordinary shares.
Cash and cash equivalents
As of September 30, 2010, the
Company had RMB400 million
(USD59.7 million) of cash and cash
equivalents, as compared to RMB544
million (USD80.2 million) as
of June 30, 2010. Cash and cash
equivalents decreased mainly due to the Company's purchase of
additional short-term investments while its effect is partially
offset by cash inflow from operating activities.
Appointment and resignation of independent
directors
On November 20, 2010, the Board of
Directors approved the appointment of Dr. Liping He as the Company's new independent
director. Dr. He is currently Chair of the Department of Finance at
the School of Economics and Public Administration, Beijing Normal
University, where he has been a professor since 2001. His study
specializes in the reform of China's financial system, macroeconomics, and
international finance.
Dr. He has been a member of the China Economy 50 Persons Forum
since 1998. He has been frequently involved with research and
policy consulting work for various government departments and
international financial institutions in China, including the People's Bank of
China, the PRC Ministry of
Finance, and the Asian Development Bank, among others.
Dr. He received a Masters degree in World Economics from the
Chinese Academy of Social Sciences in 1987, and a Ph.D in Economics
from the School of Oriental and African Studies at the University
of London in 1996. He was a
visiting scholar at Cambridge
University in England from
1989 to 1990. Prior to joining Beijing Normal University, Dr. He
worked at the China Institute of Finance and Banking, and from 2002
to 2003, he was a Fulbright Visiting Scholar to the Graduate
School of Business at Columbia
University in New York.
Effective from November 20, 2010,
Mr. Allen Chien has resigned from
his position as an independent director and audit committee
chairman of the Company for personal reasons. The board of
directors expressed its sincere gratitude to Mr. Chien for his
services and advice over the past two years. Dr. He will assume the
position of audit committee chairman after Mr. Chien's
resignation.
Business Outlook
For the fourth quarter of 2010, the Company currently expects to
generate total net revenues of between RMB70.0 million (US$10.5
million) and RMB76.0 million
(US$11.4 million), which represents a
potential decrease of 35.1% to 40.3% from the fourth quarter of
2009.
This forecast reflects the Company's current and preliminary
estimates, which are subject to change.
Conference Call
China Mass Media will host a conference call and live webcast at
8:00 a.m. Eastern Time (EST) on
November 22, 2010(9:00 p.m. Beijing time on November 22, 2010).
The dial-in details for the live conference call are as
follows:
|
|
|
- U.S. Toll Free
Number:
|
+1 800-299-9630
|
|
- International dial-in
Number:
|
+1 617-786-2904
|
|
- China Toll Free
Number:
|
+10 800 152 1490
(North)
|
|
|
+10 800 130 0399
(South)
|
|
- Hong Kong Toll Free
Number:
|
+800 963
844
|
|
Passcode: CMM
|
|
|
|
|
A live webcast of the conference call will be available on the
investor relations section of the Company's website at:
http://www.chinammia.com.
A telephone replay of the call will be available after the
conclusion of the conference call. The dial-in details for the
replay are as follows:
- U.S. Toll Free
Number:
|
+1 888 286 8010
|
|
- International dial-in
number:
|
+1 617 801 6888
|
|
Passcode:
19186777
|
|
|
|
|
Non-GAAP Disclosure
In addition to the unaudited consolidated financial information
presented in accordance with US GAAP, management uses a non-GAAP
measure of net income excluding non-cash share-based compensation.
Company management believes excluding the share-based compensation
expenses from non-GAAP financial measures is useful for the
investors' understanding of overall current financial performance.
Nevertheless, the limitation of using non-GAAP financial measures
excluding share-based compensation expenses is that share-based
compensation expenses have been and will continue to be a
significant recurring expense in the Company's business.
The presentation of the non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with US
GAAP. For more information on these non-GAAP financial measures,
please see the tables captioned "Reconciliations of non-GAAP
results of operations measures to the nearest comparable GAAP
measures" set forth below, which shall be read in conjunction with
the preceding financial information presented in accordance with US
GAAP.
Safe Harbor Statement
This document contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and Section 27A of the Securities Act of 1933, as amended,
and the U.S. Private Securities Litigation Reform Act of 1995.
These statements include, but are not limited to, statements about
the Company's plans, objectives, expectations, strategies,
intentions, or other characterizations of future events or
circumstances and are generally identified by the words
anticipates, believes, could, estimates, expects, intends, may,
plans, seeks, would, and similar expressions.
A number of factors could cause the Company's actual results,
performance, achievements or industry results to be materially
different from any future results, performance or achievements
expressed or implied by these forward-looking statements.
Additional information concerning factors that could cause actual
results to materially differ from those in the forward-looking
statements is contained in the Securities and Exchange Commission
filings of the Company. China Mass Media does not undertake any
obligation to update any forward-looking statements, except as
required under applicable law.
About China Mass Media Corp.
As a leading television advertising company in China, the Company provides a full range of
advertising services, including advertising agency services,
creative production services, public service announcement
sponsorship services, and other value added services. The Company
currently offers approximately 482 minutes of advertising time
slots per day on CCTV Channels 1, 2, 4, E and F. CCTV is the
largest television network in China. The Company has produced over 380
advertisements and has won a number of prestigious awards in
China and across the world,
including the "Gold World Medal" at The New York Festivals®
International Television & Film Awards. For more information,
please visit http://www.chinammia.com.
For further
information, contact:
|
|
|
|
China Mass Media
Corp.
|
|
Julie Sun
|
|
V.P. Corporate
Development
|
|
6/F, Tower B, Corporate
Square,
|
|
35 Finance Street Xicheng
District
|
|
Beijing,
100033
|
|
P. R. China
|
|
Phone:
+86-10-8809-1050
|
|
Email: juliesun@chinammia.com
|
|
|
|
Christensen
|
|
Tip Fleming
|
|
Phone:
+852-2117-0861
|
|
Email: tfleming@christensenir.com
|
|
|
|
Jenny Wu
|
|
Phone: +852 6018
0753
|
|
Email: jwu@christensenir.com
|
|
|
CHINA MASS
MEDIA CORP.
UNAUDITED
CONDENSED CONSOLIDATED
STATEMENTS OF
OPERATIONS
|
|
|
THREE MONTHS
ENDED,
|
|
|
September
30,
2009
|
|
June 30,
2010
|
|
September
30,
2010
|
|
September
30,
2010
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Advertising agency
services
|
79,826,310
|
|
50,786,201
|
|
46,604,275
|
|
6,965,739
|
|
Special events
services
|
-
|
|
-
|
|
-
|
|
-
|
|
Advertisement production
and sponsorship services
|
2,831,067
|
|
8,857,474
|
|
10,708,029
|
|
1,600,483
|
|
Total revenues
|
82,657,377
|
|
59,643,675
|
|
57,312,304
|
|
8,566,222
|
|
Less: Business tax
|
(1,959,112)
|
|
(2,757,039)
|
|
(2,561,134)
|
|
(382,802)
|
|
Total net revenues
|
80,698,265
|
|
56,886,636
|
|
54,751,170
|
|
8,183,420
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
(65,123,775)
|
|
(32,707,715)
|
|
(31,954,073)
|
|
(4,776,037)
|
|
Sales and marketing
expenses
|
(3,897,454)
|
|
(3,972,271)
|
|
(3,595,523)
|
|
(537,407)
|
|
General and administrative
expenses
|
(8,020,381)
|
|
(12,121,812)
|
|
(6,712,846)
|
|
(1,003,340)
|
|
Total operating costs and
expenses
|
(77,041,610)
|
|
(48,801,798)
|
|
(42,262,442)
|
|
(6,316,784)
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
3,656,655
|
|
8,084,838
|
|
12,488,728
|
|
1,866,636
|
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
1,647,683
|
|
1,270,014
|
|
1,482,268
|
|
221,548
|
|
Other income/
(expense),
net
|
(189,169)
|
|
(1,287,345)
|
|
(3,071,458)
|
|
(459,077)
|
|
|
|
|
|
|
|
|
|
|
Income before tax
|
5,115,169
|
|
8,067,507
|
|
10,899,538
|
|
1,629,107
|
|
Income tax expense
|
(1,075,459)
|
|
(3,724,709)
|
|
(4,465,167)
|
|
(667,389)
|
|
Net income
|
4,039,710
|
|
4,342,798
|
|
6,434,371
|
|
961,718
|
|
|
|
|
|
|
|
|
|
|
Net income available to
ordinary shareholders
|
4,039,710
|
|
4,342,798
|
|
6,434,371
|
|
961,718
|
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share,
basic and diluted
|
0.005
|
|
0.006
|
|
0.008
|
|
0.0012
|
|
Earnings per ADS, basic and
diluted
|
0.15
|
|
0.17
|
|
0.24
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating
earnings per ordinary share,
basic
|
788,012,500
|
|
788,012,500
|
|
788,012,500
|
|
788,012,500
|
|
Shares used in calculating
earnings per ordinary share, diluted
|
793,255,915
|
|
788,012,500
|
|
788,702,468
|
|
788,702,468
|
|
Shares used in calculating
earnings per ADS,
basic
|
26,267,083
|
|
26,267,083
|
|
26,267,083
|
|
26,267,083
|
|
Shares used in calculating
earnings per ADS,
diluted
|
26,441,864
|
|
26,267,083
|
|
26,290,082
|
|
26,290,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA MASS
MEDIA CORP.
UNAUDITED
CONDENSED
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
December 31,
2009
|
|
September 30,
2010
|
|
September 30,
2010
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
508,778,014
|
|
399,623,512
|
|
59,729,992
|
|
Short-term
investments
|
|
80,000,000
|
|
290,000,000
|
|
43,345,042
|
|
Notes
receivable
|
|
1,937,450
|
|
-
|
|
-
|
|
Accounts
receivable, net of allowance for doubtful accounts of
RMB6,507,638 and RMB4,014,080 as
of December 31, 2009
and September
30, 2010
|
|
375,568
|
|
4,607,542
|
|
688,669
|
|
Prepaid
expenses and other current assets
|
|
66,560,752
|
|
53,435,068
|
|
7,986,708
|
|
Total current
assets
|
|
657,651,784
|
|
747,666,122
|
|
111,750,411
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
55,464,401
|
|
59,546,831
|
|
8,900,206
|
|
Total non-current
assets
|
|
55,464,401
|
|
59,546,831
|
|
8,900,206
|
|
Total Assets
|
|
713,116,185
|
|
807,212,953
|
|
120,650,617
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholder's
Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
50,446,460
|
|
125,673,190
|
|
18,783,826
|
|
Customer
advances
|
|
20,657,147
|
|
37,490,824
|
|
5,603,591
|
|
Accrued
expenses and other current liabilities
|
|
17,776,049
|
|
19,876,365
|
|
2,970,834
|
|
Taxes
payable
|
|
20,519,899
|
|
24,976,324
|
|
3,733,103
|
|
Amount due
to related parties
|
|
127,068,624
|
|
100,366,968
|
|
15,001,415
|
|
Total
current liabilities
|
|
236,468,179
|
|
308,383,671
|
|
46,092,769
|
|
Total
Liabilities
|
|
236,468,179
|
|
308,383,671
|
|
46,092,769
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
Ordinary shares ($0.001 par
value; 900,000,000,000
shares authorized;
716,375,000 and
788,012,500 issued and outstanding as
of December 31, 2009 and
September 30,
2010,
respectively)
|
|
4,893,500
|
|
5,379,202
|
|
804,006
|
|
Additional paid-in
capital
|
|
332,354,066
|
|
361,420,502
|
|
54,019,954
|
|
Statutory
reserves
|
|
25,000,000
|
|
25,000,000
|
|
3,736,641
|
|
Retained
earnings
|
|
114,400,440
|
|
107,029,578
|
|
15,997,247
|
|
Total
Shareholders' Equity
|
|
476,648,006
|
|
498,829,282
|
|
74,557,848
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Shareholder's
Equity
|
|
713,116,185
|
|
807,212,953
|
|
120,650,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA MASS
MEDIA CORP.
UNAUDITED
CONDENSED CONSOLIDATED
STATEMENTS OF
CASH FLOWS
|
|
|
THREE MONTHS
ENDED
|
|
|
September 30,
2009
|
|
June 30,
2010
|
|
September 30,
2010
|
|
September 30,
2010
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
Net income/
(loss)
|
4,039,710
|
|
4,342,798
|
|
6,434,371
|
|
961,718
|
|
Adjustments
to reconcile net income/ (loss) to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
766,329
|
|
741,029
|
|
774,606
|
|
115,777
|
|
Investment
income
|
(956,768)
|
|
(900,712)
|
|
(1,140,083)
|
|
(170,403)
|
|
Exchange
(gain)/
loss
|
202,609
|
|
1,406,128
|
|
3,308,936
|
|
494,572
|
|
Share-based
compensation
|
443,108
|
|
557,720
|
|
215,601
|
|
32,225
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Notes
receivable
|
(2,392,460)
|
|
4,264,739
|
|
-
|
|
-
|
|
Accounts
receivable
|
3,763,062
|
|
(445,813)
|
|
5,634,850
|
|
842,217
|
|
Prepaid
expense and other current assets
|
(2,887,194)
|
|
7,145,623
|
|
4,256,345
|
|
636,177
|
|
Amount due
from a related party
|
391,664
|
|
|
|
|
|
|
|
Accounts
payable
|
(303,994,566)
|
|
23,584,679
|
|
19,248,859
|
|
2,877,043
|
|
Customer
advances
|
29,770,913
|
|
(2,899,658)
|
|
15,051,709
|
|
2,249,714
|
|
Accrued
expenses and other current liabilities
|
(1,656,772)
|
|
3,774,216
|
|
770,278
|
|
115,130
|
|
Taxes
payable
|
(366,530)
|
|
(266,311)
|
|
97,832
|
|
14,623
|
|
Amount due
to related parties
|
(123,772,918)
|
|
(123,360)
|
|
(123,360)
|
|
(18,438)
|
|
Net cash provided
by/ (used in) operating
activities
|
(396,649,813)
|
|
41,181,078
|
|
54,529,944
|
|
8,150,354
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
Net proceeds from
redemption / (purchase)
of short-term investments with term of three months or
less
|
(50,000,000)
|
|
100,000,000
|
|
(190,000,000)
|
|
(28,398,475)
|
|
Purchase of long-term investment
on behalf of shareholder
|
-
|
|
-
|
|
-
|
|
-
|
|
Purchase of property and
equipment
|
(415,185)
|
|
(13,358)
|
|
(6,408,266)
|
|
(957,816)
|
|
Proceeds from investment
income
|
923,891
|
|
1,049,616
|
|
1,140,082
|
|
170,403
|
|
Net cash provided
by/ (used in) investing
activities
|
(49,491,294)
|
|
101,036,258
|
|
(195,268,184)
|
|
(29,185,888)
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
Net cash provided
by/ (used
in) financing
activities
|
-
|
|
-
|
|
-
|
|
-
|
|
Effect of foreign currency
exchange
|
(202,609)
|
|
(1,406,128)
|
|
(3,308,936)
|
|
(494,572)
|
|
Net increase
/ (decrease)
in cash and cash
equivalents
|
(446,343,716)
|
|
140,811,208
|
|
(144,047,176)
|
|
(21,530,106)
|
|
Cash and cash equivalents at
beginning of the period
|
1,126,941,402
|
|
402,859,480
|
|
543,670,688
|
|
81,260,098
|
|
Cash and cash equivalents at end
of the period
|
680,597,686
|
|
543,670,688
|
|
399,623,512
|
|
59,729,992
|
|
|
|
|
|
|
|
|
|
|
|
CHINA MASS
MEDIA CORP.
SELECTED
OPERATING DATA
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
September
30,
2009
|
|
June
30,
2010
|
|
September
30,
2010
|
|
|
|
|
|
|
|
|
|
Number of programs secured
during the period
|
|
41
|
|
35
|
|
35
|
|
Total advertising time obtained
(seconds)
|
|
2,938,860
|
|
2,621,970
|
|
2,621,970(1)
|
|
Total advertising time sold
(seconds)
|
|
264,660
|
|
133,695
|
|
132,880(2)
|
|
|
|
|
|
|
|
|
|
(1) Represents
the total amount of time during regular television programs secured
through the Company's contracts
with CCTV, including 263,250
seconds from CCTV-1, CCTV-2 and
CCTV-4 and 2,358,720
seconds from CCTV-E and
CCTV-F.
|
|
(2) During the
three-month periods ended September 30,
2009, June 30,
2010, and
September 30, 2010,
the Company has
sold 27,840 seconds, 9,630 seconds
and 19,680 seconds of
advertisements in CCTV-E and CCTV-F
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATIONS OF UNAUDITED
NON-GAAP RESULTS OF OPERATIONS
MEASURES TO
THE NEAREST COMPARABLE GAAP MEASURES (*)
|
|
|
Three months
ended
September
30,
2009
|
|
Three months
ended
September
30,
2010
|
|
|
GAAP Result
|
Adjustment
|
Non-GAAP
Result
|
|
GAAP
Result
|
Adjustment
|
Non-GAAP
Result
|
|
|
RMB
|
RMB
|
RMB
|
|
RMB
|
RMB
|
RMB
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
3,656,655
|
443,108
|
4,099,763
|
|
12,488,728
|
215,601
|
12,704,329
|
|
|
|
|
|
|
|
|
|
|
Net income
|
4,039,710
|
443,108
|
4,482,818
|
|
6,434,371
|
215,601
|
6,649,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) The adjustment is for share-based compensation expenses.
Non-GAAP Disclosure
In addition to the unaudited consolidated financial information
presented in accordance with US GAAP, management uses a non-GAAP
measure of net income excluding non-cash share-based compensation.
Company management believes excluding the share-based compensation
expenses from non-GAAP financial measures is useful for the
investors' understanding of overall current financial performance.
Nevertheless, the limitation of using non-GAAP financial measures
excluding share-based compensation expenses is that share-based
compensation expenses have been and will continue to be a
significant recurring expense in the Company's business.
The presentation of the non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with US
GAAP. For more information on these non-GAAP financial measures,
please see the tables captioned "Reconciliations of non-GAAP
results of operations measures to the nearest comparable GAAP
measures" set forth above, which shall be read in conjunction with
the preceding financial information presented in accordance with US
GAAP.
SOURCE China Mass Media Corp.
Copyright . 22 PR Newswire