BEIJING, Aug. 22, 2011 /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 second quarter ended June
30, 2011.
Second Quarter 2011 Highlights:
- Total net revenues were RMB51.7
million (US$8.0 million), a
decrease of 9.1% from the second quarter of 2010 and an increase of
1.6% from the first quarter of 2011.
- Operating income was RMB14.3
million (US$2.2 million), an
increase of 77.2% from RMB8.08
million in the second quarter of 2010 and an increase of
9.0% from the first quarter of 2011.
- Net income was RMB11.2 million
(US$1.7 million), an increase of
158.6% from RMB4.3 million in the
second quarter of 2010 and an increase of 35.3% from the first
quarter of 2011.
- Net cash outflows from operating activities were RMB12.8million (US$2.0
million), compared to RMB41.2
million net cash inflows in the second quarter of 2010 and
RMB34.8 million net cash inflows in
the first quarter of 2011.
Mr. Shengcheng Wang, Chairman and Chief Executive Officer of
China Mass Media, commented, "Our performance largely came within
our expectations. Due to the second quarter being a
seasonally weak period for the advertising market, there was no
significant growth in our business. The weak season had a large
influence on the sales and revenues of time slots for our "Daytime
Advertising Package" and "Television Guide Package" when compared
with previous quarters. At the same time, we did see growth in
sales revenues from our "Periodic China News Package" on China
Central Television ("CCTV")-4 when compared with the previous
quarter, as we acquired new customers. As a result of the foregoing
factors, our second quarter revenues from advertising agency
services increased marginally from the first quarter."
"Our advertising production and sponsorship services have been
showing good momentum. In the second quarter, revenues from
advertising production and sponsorship services increased
significantly from the previous quarter as well as the second
quarter of 2010 as we successfully produced a number of commercials
for clients, including Sanyuan Dairy, Yunnan Baiyao and Gonow Auto.
We also renewed public service sponsorship contracts with
Yunan Hongta Group and Wyeth Pharmaceuticals. As mentioned in our
first quarter announcement, as of July 1,
2011, we ceased to be the producer of the "Guang Er Gao Zhi"
program due to CCTV programming changes. This will have a negative
impact on our top and bottom lines in subsequent periods. For
the years ended December 31, 2008,
2009 and 2010 and the six months ended June
30, 2011, revenues from sponsorship services in relation to
the 'Guang Er Gao Zhi' program amounted to RMB17.2 million, RMB8.5
million, RMB12.2 million and
RMB9.1 million (US$1.4 million) respectively."
"The significant increase in both operating income and net
profit for the period was mainly attributable to a refund received
in the second quarter of RMB4.1
million on the purchase price of advertisements that failed
to be broadcasted by CCTV-4 in 2010. In addition, the Company
converted its overseas US dollar deposits into Renminbi, thus
avoiding the exchange loss caused by the appreciation of the
Renminbi against the US dollar. As a result, both operating income
and net profit showed significant growth in the second
quarter."
"In addition to advertising, content production has become an
important component of our development strategy. At the end of the
second quarter, we established a China-based film and TV production company,
which recently completed program planning for a new TV program.
We are now in discussions with two provincial satellite TV
networks for the production and broadcast of the program in
exchange for advertising time slots. We are also working on the
script of a new TV drama series. We believe providing high quality
entertainment programs to provincial satellite TV and local TV
stations will create more avenues for acquiring new advertising
business. We also expect to generate new revenues from in-program
advertisement in our TV programs. We will update our progress in
content production over the coming months."
"Our listing application was rejected by the Hong Kong Stock
Exchange in July 2011 due to the
Company's dependence on CCTV."
"Additionally, because we did not reach an agreement with CCTV-E
and CCTV-F over contract pricing from July
1, 2011 to June 30, 2013, we
terminated our contract with both channels effective July 1, 2011. As a result, from the third quarter
of 2011, total advertising time obtained by the Company will
decrease significantly. Since the advertising time sold for
CCTV-E and CCTV-F channels was limited in the past, we do not
expect our overall revenue and total advertising time sold to be
significantly adversely affected. Over the past three years,
there were no viewership statistics for these channels, making it
difficult for us to promote our sales of advertising time.
Revenues related to CCTV-E and CCTV-F was approximately
RMB80,000 (US$12,000) in the six months ended June 30, 2011, and approximately RMBnil,
RMB5.7 million and RMB0.4 million for each of the years ended
December 31, 2008, 2009 and 2010,
respectively."
"Net cash outflows for the period were mainly due to the
settling of outstanding payables to CCTV in relation to the media
fees for the "Daytime Advertising Package" and "Television Guide
Package" for the year ended December
31, 2009."
"We are anticipating an upturn in the second half of the year,
during which there are several important Chinese holidays and
festivals. We plan to work on sourcing new clients and further
improving the utilization rate of our media resources during this
peak season period. We also plan to conduct more media research in
preparation for the upcoming public bidding of CCTV advertising
resources in November."
Second Quarter 2011 Financial Results
Revenues
Revenues from advertising agency services were
RMB45.7 million (US$7.1 million) in the second quarter of 2011, a
decrease of 10.1 % from RMB50.8
million in the second quarter of 2010, and a decrease of
2.2% from RMB46.7 million in the
first quarter of 2011. As expected, revenues were affected by a
decrease in sales during the advertising industry's traditional low
season. In particular, revenues from the Company's "Daytime
Advertising Package" and "Television Guide Package" decreased.
However, certain new clients advertising through the Company's
"Periodic China News Package" on CCTV-4 contributed to a noticeable
increase in sales compared with the previous quarter. As a result,
total revenues from advertising agency services only decreased
slightly from the first quarter of 2011. The decrease in
revenues compared with the second quarter of last year was mainly
due to the decrease in revenues relating to CCTV-4, as the time
slots available for sale decreased from 90 seconds to 60
seconds.
Revenues from production and sponsorship services were
RMB9.4 million (US$1.5 million) in the second quarter of 2011, an
increase of 6.6% from RMB8.9 million
in the second quarter of 2010, and an increase of 31.9% from
RMB7.2 million in the first quarter
of 2011. The Company's efforts to improve production capabilities
and proactively source new clients helped support momentum in the
Company's production and sponsorship services business. During the
second quarter of 2011, the Company successfully produced a number
of commercials for clients such as Sanyuan Dairy, Yunnan Baiyao and
Gonow Auto, and also renewed sponsorship of public service
advertising from Yunan Hongta Group and Wyeth Pharmaceuticals.
Overall, revenues from production and sponsorship services
increased on both a year-over-year and quarter-over-quarter
basis.
Operating costs and expenses
Cost of revenues was RMB24.5
million (US$3.8 million) in
the second quarter of 2011, a decrease of 25.2% from RMB32.7 million in the second quarter of 2010 and
a decrease of 9.7% from RMB27.1
million in the first quarter of 2011. The significant
decrease in cost of revenues from the second quarter of 2010 was
because time slots available on the Company's "Periodic China News
Package" on CCTV-4 decreased from 90 seconds to 60 seconds in 2011.
Additionally the Company received a RMB4.1
million refund from CCTV on the purchase price relating to
the advertisements that were failed to be broadcasted by CCTV-4 in
2010. This refund was used to offset the relevant media costs of
the "Periodic China News Package". The decrease in cost of revenues
compared with the first quarter of 2011 was mainly due to such
refund from CCTV.
Sales and marketing expenses were RMB4.2 million (US$0.7
million) in the second quarter of 2011, an increase of 6.3%
from RMB4.0 million in the second
quarter of 2010 and a decrease of 5.0% from RMB4.4 million in the first quarter of 2011. The
increase compared with the second quarter of 2010 was mainly due to
the increase of depreciation and entertainment expenses. The
decrease compared with the previous quarter was mainly because of a
relative decrease in entertainment expenses and promotion
costs.
General and administrative expenses were RMB8.7 million (US$1.3
million) in the second quarter of 2011, a decrease of 28.3%
from RMB12.1 million in the second
quarter of 2010 and an increase of 39.6% from RMB6.2 million in the first quarter of 2011. The
decrease compared with the second quarter of 2010 was mainly due to
lower professional service fees. The increase compared with the
previous quarter was mainly because of the Company's attempt to
list on the Hong Kong Stock Exchange, which led to an additional
RMB2.5 million in fees for sponsors,
lawyers and auditors.
Operating income, as a result of the foregoing factors,
was RMB14.3 million (US$2.2 million) in the second quarter of 2011, an
increase of 77.2% from RMB8.1 million
in the second quarter of 2010 and an increase of 9.0% from
RMB13.1 million in the first quarter
of 2011. The Company's operating margin was 14.2%, 25.8% and 27.7%
for the quarters ended June 30, 2010,
March 31, 2011 and June 30, 2011, respectively.
Other expenses included an exchange loss of RMB0.8 million (US$0.1
million) in the second quarter of 2011. As the Company
converted its overseas US dollar deposits to Renminbi deposits, the
exchange loss arising from the appreciation of the Renminbi against
the US dollar decreased significantly as compared to the exchange
loss of RMB1.4 million and
RMB2.5 million in the second quarter
of 2010 and the first quarter of 2011, respectively.
Income tax expense was RMB5.8
million (US$0.9 million) in
the second quarter of 2011, an increase of 55.5% from RMB3.7 million in the second quarter of 2010, and
an increase of 18.6% from RMB4.9
million in the first quarter of 2011. The Company's
effective tax rate was 46.2%, 37.0% and 34.0% for the quarters
ended June 30, 2010, March 31, 2011 and June
30, 2011, respectively. The effective tax rate for the
second quarter of 2011 was higher than the PRC statutory tax rate
mainly due to approximately RMB1.8
million (US$0.3 million)
intermediary service expenses incurred in connection with the Hong
Kong Stock Exchange listing application and exchange losses of
RMB0.8 million (US$0.1 million) incurred by offshore subsidiaries
that were not deductible for PRC tax purposes.
Net income was RMB11.2
million (US$1.7 million) in
the second quarter of 2011, an increase of 158.6% from net income
of RMB4.3 million in the second
quarter of 2010 and an increase of 35.3% from RMB8.3 million in net income in the first quarter
of 2011. The Company's net margin was 7.6%, 16.3% and 21.7% for the
quarters ended June 30, 2010,
March 31, 2011 and June 30, 2011, respectively.
Basic and diluted earnings per ADS for the second quarter of
2011 were RMB0.44 (US$0.07), compared with basic and diluted
earnings per ADS of RMB0.17 for the
second quarter of 2010 and RMB0.32
for the first quarter of 2011.
Each ADS represents 30 ordinary shares of the Company.
Business Outlook
The Company currently expects to generate total net revenues of
between RMB52 million (US$8.1 million) and RMB57
million (US$8.8 million) for
the third quarter of 2011, including RMB14
million in revenues from CCTV in relation to special events
services provided to CCTV for the 2008 Beijing Olympic Games. The
expected range of net revenues represents a potential decrease of
up to 5.0% or increase of 4.1% compared with the third quarter of
2010. This forecast reflects the Company's current and preliminary
estimate, which is subject to change.
Conference Call
China Mass Media will host a conference call and live webcast at
8:00 a.m. Eastern Time (EDT) on
August 22, 2011 (8:00 pm Beijing Time on August 22, 2011).
The dial-in details for the live conference call are as
follows:
- U.S. Toll Number:
|
+1 617 847
8706
|
|
- U.S. Toll Free
Number:
|
+1 800 237
9752
|
|
- HK. Toll Free
Number:
|
800 96
3844
|
|
- South China Toll Free Number/
China Telecom:
|
10 800 130
0399
|
|
- North China Toll Free Number/
China Telecom:
|
10 800 152
1490
|
|
- South China Toll Free Number/
China Netcom:
|
10 800 852
1490
|
|
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:
9376 9983
|
|
|
|
|
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 unaudited
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 42 minutes of advertising time slots
per day on CCTV Channels 1, 2, and 4. CCTV is the largest
television network in China. The
Company has produced over 400 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
|
|
Chief
Financial Officer
|
|
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
|
|
|
|
Teal Willingham
|
|
Phone:
+852-9827-3632
|
|
Email:
twillingham@christensenir.com
|
|
|
CHINA MASS
MEDIA CORP.
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
THREE MONTHS ENDED,
|
|
|
June 30,
2010
|
|
March 31,
2011
|
|
June 30,
2011
|
|
June 30,
2011
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Advertising agency
services
|
50,786,201
|
|
46,699,856
|
|
45,663,780
|
|
7,064,869
|
|
Advertisement
production and sponsorship services
|
8,857,474
|
|
7,157,528
|
|
9,440,351
|
|
1,460,563
|
|
Total revenue
|
59,643,675
|
|
53,857,384
|
|
55,104,131
|
|
8,525,432
|
|
Less: Business
tax
|
(2,757,039)
|
|
(2,955,722)
|
|
(3,406,283)
|
|
(527,003)
|
|
|
|
|
|
|
|
|
|
|
Total net
revenues
|
56,886,636
|
|
50,901,662
|
|
51,697,848
|
|
7,998,429
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(32,707,715)
|
|
(27,085,297)
|
|
(24,459,536)
|
|
(3,784,256)
|
|
Sales and marketing
expenses
|
(3,972,271)
|
|
(4,446,447)
|
|
(4,222,482)
|
|
(653,280)
|
|
General and
administrative expense
|
(12,121,812)
|
|
(6,225,352)
|
|
(8,689,827)
|
|
(1,344,446)
|
|
Total operating costs and
expenses
|
(48,801,798)
|
|
(37,757,096)
|
|
(37,371,845)
|
|
(5,781,982)
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
8,084,838
|
|
13,144,566
|
|
14,326,003
|
|
2,216,447
|
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
1,270,016
|
|
2,481,784
|
|
3,465,320
|
|
536,137
|
|
Other expense,
net
|
(1,287,347)
|
|
(2,443,265)
|
|
(766,957)
|
|
(118,660)
|
|
|
|
|
|
|
|
|
|
|
Income before
tax
|
8,067,507
|
|
13,183,085
|
|
17,024,366
|
|
2,633,924
|
|
Income tax
expense
|
(3,724,709)
|
|
(4,883,735)
|
|
(5,792,977)
|
|
(896,260)
|
|
Net income
|
4,342,798
|
|
8,299,350
|
|
11,231,389
|
|
1,737,664
|
|
|
|
|
|
|
|
|
|
|
Net income available to
ordinary shareholders
|
4,342,798
|
|
8,299,350
|
|
11,231,389
|
|
1,737,664
|
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary
share, basic
|
0.006
|
|
0.0108
|
|
0.0147
|
|
0.0023
|
|
Earnings per ordinary
share, diluted
|
0.006
|
|
0.0107
|
|
0.0147
|
|
0.0023
|
|
Earnings per ADS,
basic
|
0.17
|
|
0.3234
|
|
0.4420
|
|
0.0684
|
|
Earnings per ADS,
diluted
|
0.17
|
|
0.3220
|
|
0.4420
|
|
0.0684
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating
earnings per ordinary share, basic
|
788,012,500
|
|
769,992,300
|
|
762,320,613
|
|
762,320,613
|
|
Shares used in calculating
earnings per ordinary share, diluted
|
788,012,500
|
|
773,240,405
|
|
762,320,613
|
|
762,320,613
|
|
Shares used in calculating
earnings per ADS, basic
|
26,267,083
|
|
25,666,410
|
|
25,410,687
|
|
25,410,687
|
|
Shares used in calculating
earnings per ADS, diluted
|
26,267,083
|
|
25,774,680
|
|
25,410,687
|
|
25,410,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA MASS
MEDIA CORP.
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
December 31,
2010
|
|
June 30,
2011
|
|
June 30,
2011
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
544,427,828
|
|
121,976,628
|
|
18,871,607
|
|
Restricted
cash
|
|
10,000,000
|
|
-
|
|
-
|
|
Short-term
investments
|
|
150,000,000
|
|
597,092,152
|
|
92,379,075
|
|
Notes
receivable
|
|
5,892,690
|
|
1,900,000
|
|
293,958
|
|
Accounts
receivable, net
|
|
991,024
|
|
8,280,885
|
|
1,281,177
|
|
Prepaid expenses
and other current assets
|
|
41,794,343
|
|
55,663,424
|
|
8,611,963
|
|
Total
current assets
|
|
753,105,885
|
|
784,913,089
|
|
121,437,780
|
|
Non-current
assets
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
58,602,500
|
|
58,632,469
|
|
9,071,318
|
|
Total
non-current assets
|
|
58,602,500
|
|
58,632,469
|
|
9,071,318
|
|
Total
assets
|
|
811,708,385
|
|
843,545,558
|
|
130,509,098
|
|
|
|
|
|
|
|
|
|
Liabilities
and Shareholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
156,494,604
|
|
190,867,984
|
|
29,530,128
|
|
Customer
advances
|
|
39,311,493
|
|
33,473,972
|
|
5,178,923
|
|
Accrued expenses
and other current liabilities
|
|
23,848,004
|
|
23,513,610
|
|
3,637,907
|
|
Taxes
payable
|
|
30,194,919
|
|
28,511,234
|
|
4,411,114
|
|
Amount due to
related parties
|
|
53,237,048
|
|
45,241,900
|
|
6,999,598
|
|
Total
current liabilities
|
|
303,086,068
|
|
321,608,700
|
|
49,757,670
|
|
Total
Liabilities
|
|
303,086,068
|
|
321,608,700
|
|
49,757,670
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Ordinary
shares ($0.001 par value; 3,000,000,000
shares
authorized; 788,332,360
shares issued and
outstanding
as of December 31,
2010;
765,665,020
shares
issued and outstanding as of June 30,
2011)
|
|
5,381,321
|
|
5,233,608
|
|
809,717
|
|
Additional paid-in
capital
|
|
361,736,018
|
|
347,854,197
|
|
53,818,240
|
|
Statutory
reserves
|
|
25,000,000
|
|
25,000,000
|
|
3,867,873
|
|
Other
comprehensive income
|
|
-
|
|
820,985
|
|
127,019
|
|
Retained
earnings
|
|
126,034,102
|
|
145,564,841
|
|
22,521,055
|
|
Repurchased shares to be
cancelled, at cost (13,860,000
ordinary
shares as of December 31,
2010
and
6,705,000
ordinary shares as of June 30,
2011)
|
|
(9,529,124)
|
|
(2,536,773)
|
|
(392,476)
|
|
Total
Shareholders' Equity
|
|
508,622,317
|
|
521,936,858
|
|
80,751,428
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders'
Equity
|
|
811,708,385
|
|
843,545,558
|
|
130,509,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA MASS
MEDIA CORP.
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
THREE MONTHS ENDED
|
|
|
June 30,
2010
|
|
March 31,
2011
|
|
June 30,
2011
|
|
June 30,
2011
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
4,342,798
|
|
8,299,351
|
|
11,231,389
|
|
1,737,664
|
|
Adjustments to reconcile
net income to net cash provided by (used in)
operating activities
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
741,029
|
|
1,000,185
|
|
1,038,622
|
|
160,690
|
|
Investment income
|
(900,712)
|
|
(2,102,411)
|
|
(2,306,877)
|
|
(356,908)
|
|
Exchange
loss
|
1,406,128
|
|
2,485,718
|
|
784,999
|
|
121,451
|
|
Share-based
compensation
|
557,720
|
|
361,253
|
|
627,576
|
|
97,095
|
|
Disposal of
property and equipment
|
-
|
|
(46,406)
|
|
(7,359)
|
|
(1,139)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Notes
receivable
|
4,264,739
|
|
(2,733,405)
|
|
6,726,095
|
|
1,040,627
|
|
Accounts
receivable, net
|
(445,813)
|
|
(4,101,852)
|
|
(3,188,009)
|
|
(493,233)
|
|
Prepaid
expense and other current assets
|
7,145,623
|
|
(6,298,388)
|
|
(4,883,765)
|
|
(755,591)
|
|
Accounts
payable
|
23,584,679
|
|
44,151,860
|
|
(9,778,480)
|
|
(1,512,877)
|
|
Customer
advances
|
(2,899,658)
|
|
16,524
|
|
(5,854,045)
|
|
(905,708)
|
|
Accrued expenses
and other current liabilities
|
3,774,216
|
|
(2,902,731)
|
|
2,301,925
|
|
356,143
|
|
Taxes
payable
|
(266,311)
|
|
(3,379,180)
|
|
(1,516,820)
|
|
(234,675)
|
|
Amount due
to related parties
|
(123,360)
|
|
-
|
|
(7,995,148)
|
|
(1,236,969)
|
|
Net cash
provided by (used in)
operating
activities
|
41,181,078
|
|
34,750,518
|
|
(12,819,897)
|
|
(1,983,430)
|
|
Cash flows
from investing activities:
|
|
|
|
|
|
|
|
|
Net proceeds from redemption /
(purchase) of short-term investments
|
100,000,000
|
|
(250,000,000)
|
|
(196,469,251)
|
|
(30,396,728)
|
|
Decrease in
restricted cash
|
-
|
|
-
|
|
10,000,000
|
|
1,547,149
|
|
Purchase of property and
equipment
|
(13,358)
|
|
(1,752,423)
|
|
(409,384)
|
|
(63,338)
|
|
Proceeds from
disposal of property and
equipment
|
-
|
|
-
|
|
146,796
|
|
22,712
|
|
Gain on sales of
investment
|
1,049,616
|
|
2,218,027
|
|
2,570,987
|
|
397,770
|
|
Net cash
provided by / (used in) investing activities
|
101,036,258
|
|
(249,534,396)
|
|
(184,160,852)
|
|
(28,492,435)
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities:
Repurchase stocks on open
market
|
-
|
|
(5,895,960)
|
|
(2,673,929)
|
|
(413,697)
|
|
Proceeds from exercise of
share options
|
-
|
|
687,751
|
|
-
|
|
-
|
|
Net cash
used in financing activities
|
-
|
|
(5,208,209)
|
|
(2,673,929)
|
|
(413,697)
|
|
Effect of
foreign currency exchange
|
(1,406,128)
|
|
(2,484,064)
|
|
(320,371)
|
|
(49,566)
|
|
Net increase
/ (decrease) in cash and cash equivalents
|
140,811,208
|
|
(222,476,151)
|
|
(199,975,049)
|
|
(30,939,128)
|
|
Cash and
cash equivalents at beginning of the period
|
402,859,480
|
|
544,427,828
|
|
321,951,677
|
|
49,810,734
|
|
Cash and
cash equivalents at end of the period
|
543,670,688
|
|
321,951,677
|
|
121,976,628
|
|
18,871,606
|
|
|
|
|
|
|
|
|
|
|
|
CHINA MASS
MEDIA CORP.
SELECTED
OPERATING DATA
|
|
|
|
THREE MONTHS ENDED
|
|
|
|
June 30,
2010
|
|
March 31,
2011
|
|
June 30,
2011
|
|
|
|
|
|
|
|
|
|
Number of programs secured
during the period
|
|
35
|
|
35
|
|
35
|
|
Total advertising time obtained
(seconds)
|
|
2,621,970
|
|
2,552,220
|
|
2,580,630(1)
|
|
Total advertising time sold
(seconds)
|
|
133,695
|
|
127,745
|
|
148,330(2)
|
|
|
|
|
|
|
|
|
|
(1) Represents
the total amount of time during regular television programs secured
through our contracts with CCTV, including
221,910 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 June 30,
2010, March 31,
2011
and June
30, 2011, the company
has sold 9,630
seconds and 11,880 seconds
and 21,000 seconds of
advertisements in CCTV-E and CCTV-F.
|
|
|
|
|
|
|
|
|
RECONCILIATIONS OF UNAUDITED
NON-GAAP RESULTS OF OPERATIONS MEASURES TOTHE NEAREST COMPARABLE
GAAP MEASURES (*)
|
|
|
THREE MONTHS ENDED JUNE 30, 2010
|
|
THREE MONTHS ENDED JUNE 30, 2011
|
|
|
GAAP Results
|
Adjustment
|
NON-GAAP
Result
|
|
GAAP Result
|
Adjustment
|
NON-GAAP
Result
|
|
|
RMB
|
RMB
|
RMB
|
|
RMB
|
RMB
|
RMB
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
8,084,838
|
557,720
|
8,642,558
|
|
17,024,366
|
627,576
|
17,651,942
|
|
|
|
|
|
|
|
|
|
|
Net income
|
4,342,798
|
557,720
|
4,900,518
|
|
11,231,389
|
627,576
|
11,858,965
|
|
|
|
|
|
|
|
|
|
|
(*)The adjustment is for
share-based compensation expenses and has no tax effect as the
Cayman Islands, where the Company was incorporated, currently does
not levy taxes on individuals or corporations based upon profits,
income, gains or appreciation.
|
|
|
|
|
|
|
|
|
|
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 unaudited
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.