Attached files
| file | filename |
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| 8-K - FORM 8-K - V Media Corp | cnmi_8k.htm |
| EX-99.2 - EXHIBIT 99.2 - V Media Corp | ex99x2.htm |
Exhibit 99.1
CHINA NEW MEDIA CORP.
Investor Presentation
September 2010
Safe Harbor Statement
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This presentation includes or incorporates by reference statements that constitute forward looking statements within the meaning of the safe-harbor provision of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or to our future financial performance, and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but not limited to, factors related to the CMDI’s anticipated growth strategies, future business development, ability to attract and retain new clients ability to develop new products, expand to other related industries or markets in other geographical locations, and other information detailed from time to time in the filings and future filings with the United States Securities and Exchange Commission. Readers are advised that this information is intended for the use of investment professionals. Anyone interested in obtaining information on CMDI should contact CMDI, as set forth above, to receive the CMDI most recent financial reports. This presentation was developed by CMDI and is intended solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy the Company’s stock. This profile is based upon information available to the public, as well as other information from sources which management believes to be reliable, but is not guaranteed by the Company as being accurate nor does it purport to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.
Company Profile
§ Founded in September, 2000 and operates
in China under the name “Dalian Vastitude
Media Group”
in China under the name “Dalian Vastitude
Media Group”
§ One of the largest out-door media
companies in northern China with dominant
position in Dalian, the commercial center of
North China
companies in northern China with dominant
position in Dalian, the commercial center of
North China
§ Diversified media advertising platform:
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Current Media Platforms
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Traditional
Outdoor Advertising Media
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Bus Shelters
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Taxi Stops
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Bus Bodies
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Metro Train Systems
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Billboards
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New
Outdoor Advertising Media
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Outdoor LED Network
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City Navigator Network
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Capital Market Summary
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Ticker Symbol (OTCBB)
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CMDI
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Share Price
(as of 8/30/2010)
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$2.00
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Market Capitalization
(as of 8/30/2010)
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$55.1M
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Shares Outstanding
(as of 8/30/2010)
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27.55M
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2009 Revenue
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$8.4M
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2009 Net Income
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$2.8M
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9-month 2010 Revenue
(through 3/31/2010)
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$11.3M
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9-month 2010 Net Income
(through 3/31/2010)
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$3.4M
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9-month 2010 Operating Cash Flow
(through 3/31/2010)
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$2.9M
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Key Investment Highlights
§ Attractive industry
q Over 10% annual growth rate *
§ Diversified media platform
q High accuracy and client satisfaction
§ Continuous innovation and strong R&D capabilities
q Over 40 patents filed
§ Established and expanding distribution network
q Dominant in Dalian, established positions in Shenyang, Tianjin and Beijing
§ Solid management team
q Experienced and dedicated with a proven track record
§ Strong financial performance
q Attractive margins and consistent growth
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* Source: OAAA
Increasing Demand for Advertising Service in China
§ China has become the second
largest outdoor advertising
market in the World, according
to research of OAAA
largest outdoor advertising
market in the World, according
to research of OAAA
§ Outdoor advertisement are
growing faster than other
advertising channels in recent
years
growing faster than other
advertising channels in recent
years
§ China’s overall advertising
spending has maintained double
digit annual growth in the last
decade; from USD 6.5 Billion
(RMB 53.8 Billion) in 1998 to
USD 20.32 Billion (RMB 138.79
Billion) in 2008, according to
ZenithOptimedia
spending has maintained double
digit annual growth in the last
decade; from USD 6.5 Billion
(RMB 53.8 Billion) in 1998 to
USD 20.32 Billion (RMB 138.79
Billion) in 2008, according to
ZenithOptimedia
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China Advertising Expenditure
Source: GroupM (September, 2009)
China’s Advertising Channels & Trend
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1. Extensive and Effective
Targeting
2. Impressive Visual
Effect
3.High Viewing
Frequency & Recall
Rate
4.Flexibility
Characteristics of Outdoor Advertising
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High density of population Public transportation is still the main way of travel for urban residents determines the broad audience base of outdoor advertising Even a casual glance will make impression. The impression is deepened by continuous exposure Attracts high viewing rate Target audience is able to recall more advertisement broadcast on outdoor media than traditional channels Advertisers can select the area closest to audience and design ads suitable to the psychological characteristics and customs of the audience
Competitive Advantages
§ Established leadership position in Dalian and Northern China
§ Synergies through diversified media advertising platforms
§ Strong initiative of innovation - proprietary and scalable multimedia
display system - the City-Navigator ®
display system - the City-Navigator ®
§ Original business concept of “Building New Urban Home” and favorable
government support
government support
§ Established and diverse client base
§ Experienced management team with proven track record
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Diversified Media Platforms
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As of August 2010
631 Bus Shelters 52 City Navigators 335 Bus Bodies 18 Billboards & LED Screens 28 Light-rail trains 133 Taxi Stops Current Media Resources
Bus Shelters and Taxi Stops Network
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§ Stable Customer Base
§ Cost Effective and Competitive CPM
Extensive Coverage
(over 70% in Dalian
City)
City)
1st Generation
2nd Generation
3rd Generation
4th Generation
§ Patented Design
§ 15 year ownership right
Wrapped Buses
§ Mobile Outdoor Advertising Media
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9 Routes
cover major residential
and commercial streets
and commercial streets
§ Multi-faceted approach to disseminate
information
information
Metro-train System
§ 15-year Exclusive Advertising
Coverage - interior/exterior of trains
and train stations
Coverage - interior/exterior of trains
and train stations
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§ 20+ Media Formats
§ 500+ Advertising Spots
Billboards and LED Screens
§ Billboards and large LED displays along high-traffic streets and
highways
highways
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Proprietary Media Platform
City-Navigator ® Multi-media Display
Poster
Frame
Frame
LED Display
Wi-Fi Receiver
Web-based
Touch-screen
Kiosk
Touch-screen
Kiosk
Bulletin
Board
Board
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City Information Query
Stock Information Query
Business Information Query
Civil Affair Query
Civil Affair Payment
Traffic Ticket Query
Business Booking Online
Mobile Download via Bluetooth
Shopping Coupon Printing
City-Navigator ® Multi-media Display
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Location Determines Value
Renmin Road Central
Business District
Business District
Qingniwa Central
Business District
Business District
Xinghai Business
Travel District
Travel District
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Our Presence
Shenyang
Beijing
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Shanghai
§The Chinese government’s policy “to revitalize the northeast traditional
industrial center” and “to develop Liaoning coastal economic zone”, will
promote rapid development in northern China
industrial center” and “to develop Liaoning coastal economic zone”, will
promote rapid development in northern China
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Beijing - Significant Revenue Opportunity
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Cross-strait Hundred-Screen Information Display Network
Project
Project
§ Landmark media platform
§ High-end audience, strong pricing power
§ Significant benefit to brand equity
§ Bus Shelters
§ High Definition LED Screen
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Shenyang - Steady expansion
Shanghai - enhanced revenue opportunity
§ Billboards display in key locations in
Shanghai
Shanghai
at the vicinity of the Oriental Pearl TV Tower
Tianjin - Metro advertising Network
§ LED Screens
§ Light boxes
Key Expansion Highlights
Diversified Client Base
§ Strong customer base with over 200 leading international and domestic
companies with strong brand recognition
companies with strong brand recognition
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Established and Increasing Client Base
Client Segmentation
(1H 2010)
Increasing number of clients
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Management Team
Wang, Guojun - Chairman & CEO
§ Founded V-Media in September 2000
§ 20 years of experience in China’s media and advertising industry
§ Elected Vice Chairman of China Advertising Association of Commerce in 2007
§ Graduated from Dalian University of Industry in 1986.
Ma, Ming - President
§ In charge of V-Media’s daily operation since its inception
§ Prior to joining V-Media, he served as Sales Manager in Dalian Pacific Advertisement Co. Ltd
§ Graduated from Dalian Institute of Finance trade union in 1991
Liu, Hongwen - Chief Financial Officer
§ Joined the Company as Chief Financial Officer in December 2003
§ Had served as Deputy Director of Dalian Da-xin Accounting Firm for 9 years
§ Graduated from the Computer-Based Accounting Department of Dalian Radio and Television University in July 1991
Rita Jiang, CFA - Executive Vice President of Finance
§ Joined CMDI in Feb. 2010. Prior to joining China New Media, served as Vice President of Finance for Rodobo International,
Inc. and Vice President at HC International, Inc.
Inc. and Vice President at HC International, Inc.
§ Graduated from USTC (Bachelors) and Northwestern University (Master in Chemistry)
Wang, Wei - Chief Operation Officer
§ Joined the Company as Chief Operation Officer in September 2009
§ Had served as Assistant President of Sinorail Bohai Train Ferry Logistics Co., Ltd. for 3 years and served as CEO of China
International Shipping Network Corp for 2 years
International Shipping Network Corp for 2 years
§ Graduated from Liaoning University in 1991
Wan, Feng - Chief Technology Officer
§ Joined the in 2001, also served as General Manager of Dalian Vastitude Network Technology Co., Ltd.
§ Graduated from Central Party School majored in Law in 2000.
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§ Continue product innovation and further diversify advertising network
§ Continue to build brand equity and client loyalty
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Growth Strategy
§ Increase market penetration and expand advertising network in Dalian,
Tianjin, Shenyang, Beijing and other tier-1 and tier-2 cities
Tianjin, Shenyang, Beijing and other tier-1 and tier-2 cities
§ Increase market coverage via selective acquisitions, expansion into more
profitable marketplace or business
profitable marketplace or business
Organic Growth Opportunities
External Growth Opportunities
Accelerating Top-line & Bottom-line Growth
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9-month
9-month
Income Statement Summary
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Balance Sheet Summary
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Cash Flow Summary
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Revenue and Gross Profit Breakdown
Revenue Contribution By Distribution
Channel (1H FY2010)
Channel (1H FY2010)
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Gross Profit Breakdown by Distribution
Channel (1H FY2010)
Channel (1H FY2010)
Conclusions: Key Investment Highlights
Solid Management Team
p Experienced & dedicated
p Proven track record
Strong Financial Performance
p Attractive margins and
consistent growth
consistent growth
Diversified Media Platform
p High accuracy and
client satisfaction
client satisfaction
‘’
Continuous Innovation and
Strong R& D Capabilities
Strong R& D Capabilities
p 40 filed patents
Attractive Industry
p Over 10% annual growth
rate
rate
Established and Expanding
Distribution Network
Distribution Network
p Effective coverage and
accessible network
accessible network
l1
l2
l3
l4
l5
l6
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Contact Information
China New Media Corp.
Rita Jiang
EVP of Finance
Tel: (646) 691-5047
Email: rita.jiang@gywj.cn
Website: www.gywj.cn
Legal Counsel
Troutman Sanders LLP
The Chrysler Building
405 Lexington Avenue
New York, NY 10174
Tel:(212) 704-6000
Investor Relations
Dave Gentry
Redchip Inc.
Tel: 1-800-733-2447
Email: dave@redchip.com
Auditor
Friedman LLP
406 Lippincott Drive, Suite J
Marlton, NJ 08053
Tel:(856) 355-5900
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