BEIJING, March 19, 2012 /PRNewswire-Asia-FirstCall/ --
China Mass Media Corp. ("China Mass Media" or the "Company") (NYSE:
CMM), a television advertising company in China, today announced its unaudited financial
results for the fourth quarter and fiscal year ended December 31, 2011.
Fourth Quarter 2011 Highlights
- Total net revenues were RMB52.2
million (US$8.3 million), a
decrease of 31.1% from the fourth quarter 2010, and a decrease of
9.3% from the third quarter 2011.
- Operating income was RMB1.9
million (US$0.3 million), a
decrease of 93.2% from the fourth quarter 2010 and a decrease of
88.6 % from the third quarter 2011.
- Net loss was RMB18.5 million
(US$2.9 million), compared with net
income of RMB19.0 million in the
fourth quarter 2010, and net income of RMB14.0 million in the third quarter 2011. The
net loss was mainly attributable to a withholding tax expense of
RMB19.1 million (US$3.0 million) incurred in conjunction with the
special dividend of RMB364.0 million
(US$57.9 million) million declared in
the fourth quarter 2011.
- Net cash outflows from operating activities were RMB53.5 million (US$8.5
million), compared with RMB25.9
million net cash inflows in the fourth quarter 2010 and
RMB158.3 million net cash outflows in
the third quarter 2011.
Fiscal Year 2011 Financial Highlights
- Total net revenues were RMB212.3
million (US$33.7 million) in
2011, a decrease of 12.8% from 2010.
- Operating income was RMB46.3
million (US$7.4 million) in
2011, a decrease of 26.5% from 2010.
- Net income was RMB15.0 million
(US$2.4 million) in 2011, a decrease
of 62.3% from 2010.
- Basic and diluted earnings per ADS were RMB5.94 (US$0.94),
a decrease of both 60.9% from RMB15.2
in 2010.
Mr. Shengcheng Wang, Chairman and Chief Executive Officer of
China Mass Media, commented, "Revenue from the fourth quarter
amounted to RMB52.2 million, which
was in line with our previous estimate. The decline in revenue from
the previous quarter was largely because we received a long-overdue
payment of RMB14.7 million
(US$2.3 million) in the third quarter
from CCTV for special event services provided in 2008.
Excluding the effects of the special event service fee, our
total revenues would have increased RMB8.5
million (US$1.3million), or
18.3%, from the third quarter of 2011. During the quarter revenues
from our advertising business declined by 31.1% compared with the
fourth quarter of 2010 due to greater discounts offered to our
clients in light of intense market competition and increasing media
costs, although sales rates increased significantly from the same
period in 2010.
"Our advertising production services have been stable. In the
fourth quarter, we successfully produced a number of commercials
for clients, including Baodi Group, Yunnanbaiyao, and Guangyuan
Food, which helped drive the sequential revenue growth from
advertising production services. Compared to the fourth
quarter of 2010, advertising production services revenues
decreased. This was largely due to the loss of revenue from
the recently terminated 'Guang Er Gao Zhi' program and one-time
production revenue from CCTV.
"In the fourth quarter of 2011, we saw a number of new
developments in our new film and TV production business. The
Company has completed the on-site filming stage of a TV drama, and
enters into the off-site post-production stage. Currently we
are in active discussions with a few major TV stations for the
drama's distribution and aims for airing in the second half of
2012. We plan to invest in the production of an additional 1
or 2 TV dramas this year. Our production costs expensed in
the fourth quarter of 2011 for this business were RMB6.6 million (US$1.1
million).
"On October 28, 2011, the Company
declared a special cash dividend of US$0.07667 per ordinary share. Due to this
special cash dividend distribution, the Company's reinvestment plan
for the unremitted earnings was changed from 70% to zero and the
Company recognized a withholding tax of RMB19.1 million (US$3.0
million), which resulted in a net loss of RMB18.5 million (US$2.9
million) in the fourth quarter. Excluding the effects
of the withholding tax, we would have recorded net income of
RMB0.6 million (US$0.1 million).
"In light of fierce competition from other CCTV agents in 2011,
we offered more discounts to clients compared with previous
years. Although the annual sales rate of media resources
increased significantly from the previous year, we saw a decline in
both revenues and profit. Our film and TV production
business, which was still in its initial stages of development
during the quarter, did not contribute to our revenues during the
year.
"The three-year contract between our company and CCTV for the
'Daytime Advertising Package' and 'Television Guide Package'
expired on December 31, 2011.
We were unsuccessful in the bidding for the 'Daytime
Advertising Package' at the 2012 Non-Prime Time Advertising
Resources Auction on November 22,
2011. In addition, CCTV decided to cancel the
'Television Guide Package' product in 2012. The public
service announcement 'Guang Er Gao Zhi' program was also cancelled
due to a program adjustment in July
2011. Losses of the above-mentioned contracts will
bring new challenge for us in 2012. In 2012, we focus on the
sales of the 'Periodic China News Package,' and the 'All Day
Classic Package' on CCTV-8 and continue to find other sources of
revenue through media purchases and other client services.
"We received a notice from the staff of NYSE Regulation, Inc.
("NYSE Regulation") confirming that NYSE Regulation has determined
to commence proceedings to delist the Company's American Depository
Shares (the "ADSs") from the New York Stock Exchange (the "NYSE")
on the grounds that the Company has fallen below the NYSE's
continued listing standard set forth in Section 802.01B of the NYSE
Listed Company Manual, which requires the Company to maintain an
average global market capitalization of not less than $15 million over a consecutive 30-trading day
period.
The NYSE made public announcement of this decision on
March 12, 2012. Trading in the
Company's ADSs on the NYSE will be suspended prior to the market
opening on Monday, March 19,
2012. The Company intends to facilitate the quotation of its
ADSs on the over-the-counter bulletin board (OTCBB) market."
Fourth Quarter 2011 Financial Results
Revenues
Revenue from advertising agency services were
RMB49.6 million (US$7.9 million) in the fourth quarter 2011, a
decrease of 28.6% from RMB69.4
million in the same period in 2010, and an increase of 14.4%
from RMB43.4 million in the third
quarter 2011. We saw demand increase due to the National Day
Holiday in October, as well as strong consumption towards the end
of the year. The advertising market's traditional peak season
began in the fourth quarter 2011. Revenues from the Company's
'Daytime Advertising Package' and 'Television Guide Package'
increased compared with the previous quarter. The sales
performance of the Company's "Periodic China News Package" on
CCTV-4 continued to improve on the positive momentum, and all
60-second advertising time slots were sold out, helping to increase
revenues by 14.4% from the third quarter 2011.
Due to continued fierce price competition, revenues from the
Company's 'Daytime Advertising Package' and 'Television Guide
Package' in the fourth quarter 2011 decreased compared with the
same period in 2010. Meanwhile, the time slots available from
the Company's 'Periodic China News Package' decreased from 90
seconds to 60 seconds in 2011, also led to the decrease in
revenue.
Revenue from special event services were nil in the
fourth quarter 2011. In the third quarter 2011, we received a
long-overdue payment of RMB14.7
million (US$2.3 million) from
CCTV for special event services provided in 2008, which contributed
to RMB13.4 million (US$2.1 million) to our net revenue in the
quarter.
Revenue from production and sponsorship services were
RMB5.6 million (US$0.9 million) in the fourth quarter 2011, a
decrease of 51.3% from RMB11.4
million in the fourth quarter 2010, and an increase of 68.9%
from RMB3.3 million in the third
quarter 2011. Compared with the previous quarter, the
Company's efforts to improve production capabilities and
proactively source new clients were successful in the fourth
quarter 2011. The substantial rise in revenues compared with
the third quarter 2011 resulted from a number of new commercial
advertisements for clients such as the Baodi Group, Yunnanbaiyao,
and Guangyuan Food. The decrease of revenues from advertising
production compare with the fourth quarter of 2010 was mainly due
to RMB3.5 million production revenue
from CCTV in the fourth quarter 2010, which did not recur in the
fourth quarter 2011. In addition, revenues from the
terminated "Guang Er Gao Zhi" program amounted to RMB3.3 million in the fourth quarter 2010.
Operating costs and expenses
Cost of revenues was RMB38.4
million (US$6.1 million) in
the fourth quarter 2011, an increase of 14.1% from RMB33.7 million in the fourth quarter 2010 and an
increase of 42.4% from RMB27.0
million in the third quarter 2011. The significant
sequential and year-over-year increase was mainly due to the
production costs of the Company's recent TV drama, which is now in
post-production stage. Excluding the production cost of the
TV drama, the Company's cost of revenues was RMB31.8 million in the fourth quarter 2011, a
decrease of 5.6% from the fourth quarter 2010 and an increase of
17.9% from the third quarter 2011. The decrease in cost of
revenue from the four quarter 2010 was because time slots available
on the Company's "Periodic China News Package" on CCTV-4 decreased
from 90 seconds in 2010 to 60 seconds in 2011. The increase
of cost of revenue compared with last quarter was mainly because
more costs were incurred for commercial advertisements and public
service announcements productions.
Sales and marketing expenses were RMB4.7 million (US$0.8
million) in the fourth quarter 2011, an increase of 14.6%
from RMB4.1 million in the fourth
quarter 2010 and a decrease of 29.7% from RMB6.7 million in the third quarter 2011.
The increase compared with the fourth quarter 2010 was mainly
due to the increase in salary and travel expense. The
decrease compared with the third quarter 2011 was mainly because of
a special bonus of RMB2.0 million to
Mr. Wang, the our Chief Executive Officer, for his contribution to
the Special Event Services recorded in the third quarter 2011.
Excluding the impact of this payment, sales expenses were
essentially flat compared with the previous quarter.
General and administrative expenses were RMB7.2 million (US$1.1
million) in the fourth quarter 2011, a decrease of 25.4%
compared to the RMB9.6 million in the
fourth quarter 2010, and an increase of 2.7% from RMB7.0 million in the third quarter 2011.
The decrease compared with the fourth quarter 2010 was mainly
because the Company incurred less professional service cost in the
fourth quarter 2011.
Operating income, as a result of the foregoing factors,
was RMB1.9 million (US$0.3 million) in the fourth quarter 2011, a
decrease of 93.2% from RMB28.4
million in the fourth quarter 2010 and a decrease of 88.6%
from RMB16.9 million in the third
quarter 2011. The Company's operating margin was 37.5%,
29.3%, and 3.7% for the quarters ended December 31, 2010, September 30, 2011, and December 31, 2011, respectively.
Other expenses included an exchange loss of RMB0.7 million (US$0.1
million) in the fourth quarter 2011. As the Company
converted its overseas US dollar deposits to Renminbi deposits at
the end of the first quarter of 2011, as a result, the
aforementioned exchange loss arising from the appreciation of the
Renminbi against the US dollar decreased significantly compared
with the exchange loss of RMB2.8
million in the fourth quarter 2010, and RMB0.8 million in the third quarter 2011
respectively.
Income tax expense was RMB22.6
million (US$3.6 million) in
the fourth quarter 2011, an increase of 161.4% from RMB8.6 million in the fourth quarter 2010, and an
increase of 221.7% from RMB7.0
million in the third quarter 2011. The significant
increase in income tax expense was mainly due to the special
dividend-related withholding tax in the fourth quarter 2011, which
totaled RMB19.1 million.
Excluding its impact, income tax expense would have been
RMB3.5 million in the fourth quarter
2011.
Net loss was RMB18.5
million (US$2.9 million) in
the fourth quarter 2011, compared with a net income of RMB19.0 million in the fourth quarter in 2010,
and a net income of RMB14.0 million
in the previous quarter.
Basic and diluted loss per ADS were both RMB7.41 (US$1.18)
in the fourth quarter 2011, compared with basic and diluted
earnings of RMB7.27 and RMB7.23, respectively, in the fourth quarter
2010, and RMB5.58 and RMB 5.58 in the third quarter 2011. Each
ADS represents 300 ordinary shares.
Fiscal year 2011 Financial Results
Net revenue for the 2011 fiscal year was RMB212.3 million (US$33.7
million), representing a decrease of RMB31.1 million, or 12.8%, from RMB243.4 million in 2010. During fiscal
year 2011 the Company's 'Daytime Advertising Package' and
'Television Guide Package' faced intense price competition.
Time slots available on the Company's 'Periodic China News Package'
on CCTV-4 decreased from 90 seconds in 2010 to 60 seconds in 2011.
These two factors resulted in a significant decrease in
advertising revenue, although the sales rate of all resources
increased in various degrees compared with the year 2010.
Operating costs and expenses for the 2011 fiscal year was
RMB166.1 million (US$26.4 million), representing a decrease of
RMB14.4 million, or 8.0%, from
RMB 180.5 million in 2010. The
decrease was mainly due to time slots available on the Company's
"Periodic China News Package" on CCTV-4 decreasing from 90 seconds
in 2010 to 60 seconds in 2011, which was partially offset by an
additional RMB6.6 million production
cost of the Company's TV drama.
Operating income and operating margin, as a result
of the foregoing factors, for the 2011 fiscal year was RMB46.3 million (US$7.4
million), a decrease of RMB16.7
million or 26.5% compared with RMB
62.9 million in 2010. Operating margin for the year
2011 and 2010 was 21.8% and25.9% respectively.
Net income for the 2011 fiscal year was RMB15.0 million (US$2.4
million), a decrease of RMB24.9
million or 62.3% from RMB 39.9
million in 2010. The significant decrease in net
income was mainly due to a RMB19.1
million special dividend-related withholding tax in the
fourth quarter 2011. Basic and diluted earnings per ADS were
both RMB5.94 (US$0.94) in fiscal 2011, compared with
RMB15.2 in fiscal 2010. Each
ADS represents 300 ordinary shares.
Cash and Cash Equivalents
As of December 31, 2011, the
Company had RMB111.7 million
(US$17.7 million) in cash and cash
equivalents, as compared to RMB544.4
million as of December 31,
2010. The decrease was primarily due to the payment of
media fee of previous years to CCTV, and the payment of
RMB198.5 million in special cash
dividends in the fourth quarter 2011.
Business Outlook
The Company currently expects to generate total net revenues of
between RMB32 million (US
$5.1 million) and RMB37 million (US$5.9
million) for the first quarter 2012. The expected
range of net revenues represents a potential decrease of 27.3% to
37.1% compared with the first quarter 2011 due to fewer media
resources secured by the Company and the continued pricing
competition. 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 Daylight Time (EDT)
on March 19, 2012 (8:00 pm Beijing Time on March 19, 2012) to discuss their results.
The dial-in details for the live conference call are as
follows:
- U.S.
Toll Free Number:
|
1 866 519
4004
|
- U.S.
Toll Number:
|
1 718 354
1231
|
- HK. Toll
Number:
|
852 2475
0994
|
- China
Toll Free Number:
|
800 819
0121
|
|
400 620
8038
|
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 2 hours after
the conclusion of the live conference call. The dial-in details for
the replay are as follows:
- U.S.
Toll Free Number:
|
1 866 214
5335
|
-
International dial-in number:
|
+1 718 354
1232
|
|
Passcode: 5664 0847
|
Non-GAAP Disclosure
In addition to the unaudited consolidated financial information
presented in accordance with US GAAP, management uses a non-GAAP
measure of operating income and 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.
A television advertising company in China, the Company provides a full range of
advertising services, including advertising agency services,
creative production services, and other value added services. The
Company currently offers approximately 16 minutes of advertising
time slots per day on CCTV Channels 4 and 8. 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: +86 131 2179 3446
Email: twillingham@christensenir.com
CHINA MASS MEDIA CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
THREE
MONTHS ENDED,
|
|
Dec
31,
2010
|
|
Sep
30,
2011
|
|
Dec
31,
2011
|
|
Dec
31,
2011
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Advertising agency services
|
69,441,672
|
|
43,352,565
|
|
49,603,661
|
|
7,881,228
|
Special event services
|
-
|
|
14,659,600
|
|
-
|
|
-
|
Advertisement production and
sponsorship
services
|
11,445,226
|
|
3,301,713
|
|
5,575,014
|
|
885,781
|
Total
Revenues
|
80,886,898
|
|
61,313,878
|
|
55,178,675
|
|
8,767,009
|
Less:
Business tax
|
(5,102,111)
|
|
(3,793,799)
|
|
(2,981,068)
|
|
(473,644)
|
Total net
revenues
|
75,784,787
|
|
57,520,079
|
|
52,197,607
|
|
8,293,365
|
|
|
|
|
|
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
Cost of revenues
|
(33,652,251)
|
|
(26,953,073)
|
|
(38,385,539)
|
|
(6,098,849)
|
Sales and marketing expenses
|
(4,131,716)
|
|
(6,733,407)
|
|
(4,736,501)
|
|
(752,554)
|
General and administrative expenses
|
(9,588,120)
|
|
(6,965,218)
|
|
(7,152,691)
|
|
(1,136,448)
|
Total
operating costs and expenses
|
(47,372,087)
|
|
(40,651,698)
|
|
(50,274,731)
|
|
(7,987,851)
|
|
|
|
|
|
|
|
|
Operating income
|
28,412,700
|
|
16,868,381
|
|
1,922,876
|
|
305,514
|
|
|
|
|
|
|
|
|
Interest
and investment income
|
1,646,857
|
|
4,970,052
|
|
2,830,224
|
|
449,677
|
Other
expense, net
|
(2,413,292)
|
|
(799,574)
|
|
(676,746)
|
|
(107,524)
|
|
|
|
|
|
|
|
|
Income
before tax
|
27,646,265
|
|
21,038,859
|
|
4,076,354
|
|
647,667
|
Income tax
expense
|
(8,641,741)
|
|
(7,021,745)
|
|
(22,591,640)
|
|
(3,589,450)
|
Net
income
|
19,004,524
|
|
14,017,114
|
|
(18,515,286)
|
|
(2,941,783)
|
|
|
|
|
|
|
|
|
Net income
available to ordinary
shareholders
|
19,004,524
|
|
14,017,114
|
|
(18,515,286)
|
|
(2,941,783)
|
|
|
|
|
|
|
|
|
Earnings
per ordinary share, basic
|
0.024
|
|
0.0186
|
|
(0.0247)
|
|
(0.0039)
|
Earnings
per ordinary share, diluted
|
0.024
|
|
0.0186
|
|
(0.0247)
|
|
(0.0039)
|
Earnings
per ADS, basic
|
7.27
|
|
5.580
|
|
(7.41)
|
|
(1.18)
|
Earnings
per ADS, diluted
|
7.23
|
|
5.580
|
|
(7.41)
|
|
(1.18)
|
|
|
|
|
|
|
|
|
Shares
used in calculating
earnings per ordinary share, basic
|
784,690,106
|
|
753,541,727
|
|
749,291,535
|
|
749,291,535
|
Shares
used in calculating
earnings per ordinary share, diluted
|
788,060,137
|
|
753,541,727
|
|
749,291,535
|
|
749,291,535
|
Shares
used in calculating
earnings per ADS, basic(Note)
|
2,615,634
|
|
2,511,806
|
|
2,497,638
|
|
2,497,638
|
Shares
used in calculating
earnings per ADS, diluted
|
2,626,867
|
|
2,511,806
|
|
2,497,638
|
|
2,497,638
|
|
|
|
|
|
|
|
|
Note:
Effective on November 28, 2011, the Company changed the ratio of
its ordinary shares to American Depositary Shares (ADSs) from 30:1
to 300:1. There is no change to China Mass Media's underlying
ordinary shares. After November 28, 2011, all earnings per
ADS for prior periods were retrospectively adjusted to reflect the
new ADS ratio.
|
CHINA MASS MEDIA CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
YEAR
ENDED,
|
|
Dec
31,
2009
|
|
Dec
31,
2010
|
|
Dec
31,
2011
|
|
Dec
31,
2011
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Advertising agency services
|
397,279,413
|
|
222,298,472
|
|
185,319,862
|
|
29,444,361
|
Special event services
|
-
|
|
-
|
|
14,659,600
|
|
2,329,176
|
Advertisement production and
sponsorship
services
|
30,304,634
|
|
34,151,752
|
|
25,474,606
|
|
4,047,507
|
Total
Revenue
|
427,584,047
|
|
256,450,224
|
|
225,454,068
|
|
35,821,044
|
Less:
Business tax
|
(16,021,579)
|
|
(13,046,869)
|
|
(13,136,872)
|
|
(2,087,239)
|
Total net
revenues
|
411,562,468
|
|
243,403,355
|
|
212,317,196
|
|
33,733,805
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
Cost of revenues
|
(270,239,024)
|
|
(127,654,373)
|
|
(116,883,445)
|
|
(18,570,909)
|
Sales and marketing expenses
|
(17,362,444)
|
|
(16,993,454)
|
|
(20,138,837)
|
|
(3,199,739)
|
General and administrative
expenses
|
(33,193,760)
|
|
(35,832,156)
|
|
(29,033,088)
|
|
(4,612,893)
|
Total
operating costs and expenses
|
(320,795,228)
|
|
(180,479,983)
|
|
(166,055,370)
|
|
(26,383,541)
|
|
|
|
|
|
|
|
|
Operating income
|
90,767,240
|
|
62,923,372
|
|
46,261,826
|
|
7,350,264
|
|
|
|
|
|
|
|
|
Interest
and investment income
|
9,494,036
|
|
5,257,307
|
|
13,747,380
|
|
2,184,239
|
Other
income/ (expense), net
|
532,325
|
|
(6,765,851)
|
|
(4,686,542)
|
|
(744,617)
|
|
|
|
|
|
|
|
|
Income
before tax
|
100,793,601
|
|
61,414,828
|
|
55,322,664
|
|
8,789,886
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(14,327,931)
|
|
(21,522,126)
|
|
(40,290,097)
|
|
(6,401,452)
|
|
|
|
|
|
|
|
|
Net
income
|
86,465,670
|
|
39,892,702
|
|
15,032,567
|
|
2,388,434
|
|
|
|
|
|
|
|
|
Net income
available to ordinary
shareholders
|
86,465,670
|
|
39,892,702
|
|
15,032,567
|
|
2,388,434
|
|
|
|
|
|
|
|
|
Earnings
per ordinary share, basic and diluted
|
0.11
|
|
0.05
|
|
0.02
|
|
0.0031
|
Earnings
per ADS, basic
|
32.9
|
|
15.2
|
|
5.94
|
|
0.9444
|
Earnings
per ADS, diluted
|
32.8
|
|
15.2
|
|
5.94
|
|
0.9434
|
|
|
|
|
|
|
|
|
Shares
used in calculating earnings
per ordinary share, basic
|
788,012,500
|
|
787,181,901
|
|
758,715,460
|
|
758,715,460
|
Shares
used in calculating earnings
per
ordinary share, diluted
|
789,860,806
|
|
788,662,085
|
|
759,516,363
|
|
759,516,363
|
Shares
used in calculating earnings
per ADS, basic
|
2,626,708
|
|
2,623,940
|
|
2,529,052
|
|
2,529,052
|
Shares
used in calculating earnings
per ADS, diluted
|
2,632,869
|
|
2,628,874
|
|
2,531,721
|
|
2,531,721
|
|
|
|
|
|
|
|
|
CHINA MASS MEDIA CORP.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
Dec
31,
2010
|
|
Dec
31,
2011
|
|
Dec
31,
2011
|
|
|
RMB
|
|
RMB
|
|
US$
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
544,427,828
|
|
111,712,682
|
|
17,749,358
|
Restricted cash
|
|
10,000,000
|
|
-
|
|
-
|
Short-term investments
|
|
150,000,000
|
|
193,705,911
|
|
30,776,770
|
Notes receivable
|
|
5,892,690
|
|
600,000
|
|
95,330
|
Accounts receivable, net
|
|
991,024
|
|
7,362,830
|
|
1,169,836
|
Prepaid expenses and other current
assets
|
|
41,794,343
|
|
93,655,505
|
|
14,880.361
|
Total
current assets
|
|
753,105,885
|
|
407,036,928
|
|
64,671,655
|
Non-current assets
|
|
|
|
|
|
|
Property and equipment, net
|
|
58,602,500
|
|
57,215,642
|
|
9.090,650
|
Total
non-current assets
|
|
58,602,500
|
|
57,215,642
|
|
9,090,650
|
Total
assets
|
|
811,708,385
|
|
464,252,570
|
|
73,762,305
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
156,494,604
|
|
70,419,236
|
|
11,188,490
|
Customer advances
|
|
39,311,493
|
|
28,066,802
|
|
4,459,366
|
Dividend payables
|
|
|
|
164,589,438
|
|
26,150,628
|
Accrued expenses
and other current liabilities
|
|
24,804,884
|
|
24,343,641
|
|
3,867,815
|
Taxes payable
|
|
29,238,039
|
|
15,874,490
|
|
2,522,202
|
Amount due to related parties
|
|
53,237,048
|
|
10,883,700
|
|
1,729,246
|
Total
current liabilities
|
|
303,086,068
|
|
314,177,307
|
|
49,917,747
|
Total
Liabilities
|
|
303,086,068
|
|
314,177,307
|
|
49,917,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
Ordinary shares ($0.001 par value;
3,000,000,000,000 shares
authorized;
788,332,360 shares and
751,697,920
shares issued and outstanding
as of
December 31, 2010 and December
31, 2011)
|
|
5,381,321
|
|
5,132,534
|
|
815,478
|
Additional paid-in capital
|
|
361,736,018
|
|
104,896,262
|
|
16,666,338
|
Other comprehensive income
|
|
-
|
|
13,900
|
|
2,208
|
Statutory reserves
|
|
25,000,000
|
|
25,000,000
|
|
3,972,100
|
Retained earnings
|
|
126,034,102
|
|
15,032,567
|
|
2,388,434
|
Repurchased shares to be cancelled, at cost,
(13,860,000 ordinary shares as
of December 31, 2010
and Nil as of December 31,
2011)
|
|
(9,529,124)
|
|
-
|
|
-
|
Total
Shareholders' Equity
|
|
508,622,317
|
|
150,075,263
|
|
23,844,558
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity
|
|
811,708,385
|
|
464,252,570
|
|
73,762,305
|
|
|
|
|
|
|
|
CHINA MASS MEDIA CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
|
THREE
MONTHS ENDED
|
|
Dec
31,
2010
|
|
Sep
30,
2011
|
|
Dec
31,
2011
|
|
Dec
31,
2011
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
Cash
flows from operating activities:
|
|
|
|
|
|
|
|
Net
income
|
19,004,524
|
|
14,017,114
|
|
(18,515,286)
|
|
(2,941,783)
|
Adjustments to reconcile net income to net
cash provided by / (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation expense
|
998,519
|
|
1,072,696
|
|
1,097,811
|
|
174,425
|
Investment income
|
(1,352,712)
|
|
(3,824,844)
|
|
(1,804,548)
|
|
(286,714)
|
Exchange loss
|
2,828,718
|
|
785,798
|
|
744,912
|
|
118,355
|
Share-based compensation
|
185,129
|
|
438,047
|
|
264,409
|
|
42,010
|
(Gain) / loss on disposal of property
and equipment
|
(294,175)
|
|
14,143
|
|
-
|
|
-
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Notes receivable
|
(5,892,690)
|
|
440,000
|
|
860,000
|
|
136,640
|
Accounts receivable, net
|
3,616,518
|
|
5,215,435
|
|
(4,297,380)
|
|
(682,785)
|
Prepaid expense and other current
assets
|
10,821,091
|
|
(58,749,687)
|
|
8,783,747
|
|
1,395,597
|
Amount due from a related
party
|
-
|
|
-
|
|
-
|
|
-
|
Accounts payable
|
30,821,414
|
|
(104,450,980)
|
|
(15,997,768)
|
|
(2,541,789)
|
Customer advances
|
1,820,668
|
|
16,964,850
|
|
(22,372,020)
|
|
(3,554,556)
|
Accrued expenses and other current
liabilities
|
3,971,639
|
|
(32,056)
|
|
1,123,991
|
|
178,584
|
Taxes payable
|
6,490,390
|
|
4,166,500
|
|
(3,412,805)
|
|
(542,240)
|
Amount due to related parties
|
(47,129,920)
|
|
(34,371,353)
|
|
-
|
|
-
|
Net cash
provided by/ (used in) operating activities
|
25,889,113
|
|
(158,314,337)
|
|
(53,524,937)
|
|
(8,504,256)
|
Cash
flows from investing activities:
|
|
|
|
|
|
|
|
Net
proceeds from redemption / (purchase)of short-term
investments
|
140,000,000
|
|
182,317,254
|
|
220,000,000
|
|
34,954,480
|
Purchase
of property and equipment
|
-
|
|
(707,707)
|
|
(60,900)
|
|
(9,676)
|
Proceeds
from disposal of property and equipment
|
245,812
|
|
783
|
|
-
|
|
-
|
Decrease
in restricted cash
|
(10,000,000)
|
|
-
|
|
-
|
|
-
|
Proceeds
from investment income
|
1,027,233
|
|
3,824,844
|
|
1,804,548
|
|
286,714
|
Net cash
provided by investing activities
|
131,273,045
|
|
185,435,174
|
|
221,743,648
|
|
35,231,518
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities:
Dividend distribution
|
-
|
|
-
|
|
(198,548,602)
|
|
(31,546,196)
|
Repurchase
of ordinary shares to be cancelled
|
(9,529,124)
|
|
(2,986,471)
|
|
(919,799)
|
|
(146,141)
|
Net cash
used in financing activities
|
(9,529,124)
|
|
(2,986,471)
|
|
(199,468,401)
|
|
(31,692,337)
|
Effect
of exchange rate changes on cash and cash
equivalents
|
(2,828,718)
|
|
(785,797)
|
|
(2,362,825)
|
|
(375,415)
|
Net
increase / (decrease) in cash and cash equivalents
|
144,804,316
|
|
23,348,569
|
|
(33,612,515)
|
|
(5,340,490)
|
Cash
and cash equivalents at beginning of the period
|
399,623,512
|
|
121,976,628
|
|
145,325,197
|
|
23,089,848
|
Cash
and cash equivalents at end of the period
|
544,427,828
|
|
145,325,197
|
|
111,712,682
|
|
17,749,358
|
CHINA MASS MEDIA CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
|
YEAR
ENDED
|
|
Dec
31,
2009
|
|
Dec
31,
2010
|
|
Dec
31,
2011
|
|
Dec
31,
2011
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
Cash
flows from operating activities:
|
|
|
|
|
|
|
|
Net
income
|
86,465,670
|
|
39,892,702
|
|
15,032,567
|
|
2,388,434
|
Adjustments to reconcile net income to net
cash provided by / (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation expense
|
3,074,157
|
|
3,324,151
|
|
4,209,314
|
|
668,793
|
Investment income
|
(5,994,921)
|
|
(3,819,737)
|
|
(10,038,680)
|
|
(1,594,986)
|
Exchange loss
|
363,439
|
|
7,628,472
|
|
4,801,428
|
|
762,870
|
Share-based compensation
|
2,139,736
|
|
1,478,226
|
|
1,691,285
|
|
268,718
|
Disposal of property and
equipment
|
-
|
|
(281,912)
|
|
(39,622)
|
|
(6,295)
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Notes receivable
|
(1,937,450)
|
|
(3,955,240)
|
|
5,292,690
|
|
840,924
|
Accounts receivable, net
|
13,991,625
|
|
(615,456)
|
|
(6,371,806)
|
|
(1,012,378)
|
Prepaid expense and other current
assets
|
(29,448,793)
|
|
30,701,202
|
|
(61,148,092)
|
|
(9,715,453)
|
Amount due from related
parties
|
1,000,000
|
|
-
|
|
-
|
|
-
|
Accounts payable
|
(279,638,966)
|
|
106,048,144
|
|
(86,075,368)
|
|
(13,675,999)
|
Customer advances
|
(54,765,336)
|
|
18,654,346
|
|
(11,244,691)
|
|
(1,786,601)
|
Accrued expenses and
other current liabilities
|
4,010,959
|
|
7,028,835
|
|
491,127
|
|
78,032
|
Taxes payable
|
(857,216)
|
|
3,279,672
|
|
(4,142,306)
|
|
(658,146)
|
Amount due to related parties
|
(87,952,669)
|
|
(47,500,000)
|
|
(42,366,502)
|
|
(6,731,359)
|
Net cash
provided by/ (used in) operating activities
|
(349,549,765)
|
|
161,863,405
|
|
(189,908,656)
|
|
(30,173,446)
|
|
|
|
|
|
|
|
|
Cash
flows from investing activities:
|
|
|
|
|
|
|
|
Net
proceeds from redemption / (purchase) of short-term
investments with terms of three months or less
|
420,000,000
|
|
(70,000,000)
|
|
(44,151,997)
|
|
(7,015,046)
|
Purchase
of property and equipment
|
(23,451,242)
|
|
(32,807,388)
|
|
(2,930,414)
|
|
(465,596)
|
Proceeds
from disposal of property and equipment
|
-
|
|
301,300
|
|
147,579
|
|
23,448
|
Decrease/
(increase) in restricted cash
|
-
|
|
(10,000,000)
|
|
10,000,000
|
|
1,588,840
|
Proceeds
on sales of investment
|
6,602,921
|
|
3,450,093
|
|
10,418,408
|
|
1,655,318,
|
Net cash
provided by/ (used in) investing activities
|
403,151,679
|
|
(109,055,995)
|
|
(26,516,424)
|
|
(4,213,036)
|
Cash
flows from financing activities:
|
|
|
|
|
|
|
|
Proceeds
from the issuance of ordinary shares
|
-
|
|
-
|
|
687,751
|
|
109,273
|
Cash
distributed in connection with the Reorganization
|
(15,000,000)
|
|
-
|
|
-
|
|
-
|
Dividends
distributed
|
(96,335,115)
|
|
-
|
|
(198,548,602)
|
|
(31,546,196)
|
Repurchase
ordinary shares to be cancelled
|
|
|
(9,529,124)
|
|
(12,476,159)
|
|
(1,982,262)
|
Net cash
used in financing activities
|
(111,335,115)
|
|
(9,529,124)
|
|
(210,337,010)
|
|
(33,419,185)
|
Effect
of change rate changes on cash and cash equivalents
|
(378,046)
|
|
(7,628,472)
|
|
(5,953,056)
|
|
(945,845)
|
Net
increase / (decrease) in cash and cash equivalents
|
(58,111,247)
|
|
35,649,814
|
|
(432,715,146)
|
|
(68,751,512)
|
Cash
and cash equivalents at beginning of the year
|
566,889,261
|
|
508,778,014
|
|
544,427,828
|
|
86,500,870
|
Cash
and cash equivalents at end of the year
|
508,778,014
|
|
544,427,828
|
|
111,712,682
|
|
17,749,358
|
CHINA MASS MEDIA CORP.
SELECTED OPERATING DATA
|
|
THREE
MONTHS ENDED
|
|
|
Dec
31,
2010
|
|
Sep
30,
2011
|
|
Dec
31,
2011
|
|
|
|
|
|
|
|
Number of
programs secured during the period
|
|
35
|
|
3
|
|
3(1)
|
Total
advertising time obtained (seconds)
|
|
2,676,240
|
|
224,400
|
|
224,220(2)
|
Total
advertising time sold (seconds)
|
|
212,040
|
|
104,310
|
|
162,315(3)
|
|
|
|
|
|
|
|
(1) The
Company ceased to be the advertising agency of CCTV-E and CCTV-F
from July 1, 2011. The number of programs secured and total
advertising time obtained decreased accordingly.
(2)
Represents the total amount of time during regular television
programs secured through the Company's contracts with CCTV-1,
CCTV-2 and CCTV-4 for the period ended December 31,
2011.
|
(3)
During the three-month periods ended December 31, 2010, the Company
has sold 39,120 seconds of advertisements in CCTV-E and
CCTV-F. No advertising time slots in CCTV-E and CCTV-F were
sold during the period of September 30, 2011 and December 31,
2011.
|
|
|
YEAR
ENDED
|
|
|
Dec
31,
2009
|
|
Dec
31,
2010
|
|
Dec
31,
2011
|
|
|
|
|
|
|
|
Number of
programs secured during the period
|
|
41
|
|
35
|
|
3(4)
|
Total
advertising time obtained (seconds)
|
|
11,660,760
|
|
10,515,960
|
|
5,581,470(5)
|
Total
advertising time sold (seconds)
|
|
2,127,473
|
|
578,275
|
|
542,700(6)
|
|
|
|
|
|
|
|
(4) The Company ceased to be the advertising
agency of CCTV-E and CCTV-F from July 1, 2011. The number of
programs secured and total advertising time obtained decreased from
35 to 3 accordingly.
(5) Represents the total amount of time during
regular television programs secured through the Company's contracts
with CCTV, including 889,950 seconds from CCTV-1, CCTV-2 and CCTV-4
and 4,691,520 seconds from CCTV-E and CCTV-F.
|
(6) During
the year ended December 31, 2009, December 31, 2010 and December
31, 2011, the company has sold 1,038,840 seconds, 73,860 and 32,800
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 December 31, 2010
|
|
Three
months ended December 31, 2011
|
|
GAAP
Result
|
Adjustment
|
NON-GAAP
Result
|
|
GAAP
Result
|
Adjustment
|
NON-GAAP
Result
|
|
RMB
|
RMB
|
RMB
|
|
RMB
|
RMB
|
RMB
|
|
|
|
|
|
|
|
|
Operating income
|
28,412,700
|
185,129
|
28,597,829
|
|
1,922,876
|
264,409
|
2,187,285
|
|
|
|
|
|
|
|
|
Net
income
|
19,004,524
|
185,129
|
19,189,653
|
|
(18,515,286)
|
264,409
|
(18,250,877)
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2010
|
|
Year ended December 31, 2011
|
|
GAAP
Result
|
Adjustment
|
NON-GAAP
Result
|
|
GAAP
Result
|
Adjustment
|
NON-GAAP
Result
|
|
RMB
|
RMB
|
RMB
|
|
RMB
|
RMB
|
RMB
|
|
|
|
|
|
|
|
|
Operating income
|
62,923,372
|
1,478,227
|
64,401,599
|
|
46,261,826
|
1,691,285
|
47,953,111
|
|
|
|
|
|
|
|
|
Net
income
|
39,892,702
|
1,478,227
|
41,370,929
|
|
15,032,567
|
1,691,285
|
16,723,852
|
|
|
|
|
|
|
|
|
(*)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 operating income and 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.