China Television Media's Q4 revenue increased 18.9% year-on-year to US$53.4 million

Beijing time, March 14, 2012, China Television Media today announced its unaudited fourth quarter and full year 2011 financial results as of December 31, 2011. Data showed that China Television Media's total revenue in the fourth quarter hit a record high of US$53.4 million, a year-on-year increase of 18.9%; net profit attributable to shareholders of China Television Media turned into profit, reaching US$1.7 million.

In 2011, on the premise of effectively controlling the growth of media costs, China Television successfully achieved significant expansion of its media network and accelerated the implementation of its media resource expansion strategy in third-and fourth-tier cities. Mobile TV media resources in 41 new cities have been added to the original 20 self-owned cities, greatly meeting the sinking needs of international and domestic brand advertisers for portfolio launch, marketing and product sales, and further expanding the coverage of China Television's media platform.

In addition, relying on the national scale, influence of the outdoor mobile TV network and the uniqueness of daytime TV communication, China Television has become almost all major programs and news events such as CCTV's Spring Festival Gala, Touching China, and the 315 Gala on all channels 1 to 15. In addition, CCTV also specifically authorized China Television to serve as an outdoor TV broadcast platform for its public service advertisements. These programs that focus on the public and society and touch people's hearts have greatly enhanced the credibility, influence and media communication value of China Television Media Network.

Research institutions such as CTR and CMMS have also spared no effort to conduct continuous special data research on China Television Media, which has proved China Television's all-media characteristics with multiple data such as arrival rate and conversion rate. Many well-known brands such as Unilever, Arowana, Amway, Wahaha, and 58 Tongcheng have launched China Television's media network as a national all-media platform to implement their marketing and integrated marketing. This will enable China Television to gain all-media market share in addition to the outdoor advertising market and continue to bring new revenue growth opportunities.

In addition to continuously strengthening cooperation with CCTV and satellite TV projects to enhance mobile TV program production, creative capabilities and media attention, China Television is also committed to cooperating with major universities and research institutions to carry out hardware technology research and development around the core of mobile TV media, and has made major breakthroughs in multiple application models. These research results and technology applications have obtained national-level high-tech industry certification. These new technologies will be effectively transformed into new business models as China Vision's mobile TV coverage and content platform continues to mature, providing China Vision with long-term sustainability in the era of new media technology innovation. Lay a solid foundation for sustainable growth. In addition, China Television has also passed the basic recognition of relevant national departments and is responsible for developing national-level China new media platforms and new media advertising creative platforms.

Financial report highlights:

Total revenue for the fourth quarter of 2011 was US$53.4 million, setting a record for China Television's single-quarter revenue. A year-on-year increase of 18.9%, and a month-on-month increase of 6.2%. Total revenue for 2011 was US$181 million, an increase of 31.2% from 2010.

Gross profit for the fourth quarter of 2011 was US$21.4 million, a month-on-month increase of 20%. Gross profit for 2011 was US$52.6 million, an increase of 67.5% from 2010.

Operating profit for the fourth quarter of 2011 was US$2.4 million, a 200% month-on-month increase.

In the fourth quarter of 2011, net profit attributable to shareholders of China Television Media turned into profit, reaching US$1.7 million.

Average advertising revenue per air hour in the fourth quarter of 2011 was $1,217.

The gross profit margin of advertising sales in the fourth quarter of 2011 was 40.9%, a year-on-year increase of 57.9%, and a month-on-month increase of 15.2%.

Basic net income per share and diluted net income per share under U.S. GAAP for the fourth quarter of 2011 were both US$0.02.

As of December 31, 2011, the balance of cash and cash equivalents held by the Company was US$80.3 million, while the balance of cash and cash equivalents held by the Company as at September 30, 2011 was US$111.3 million. In the fourth quarter of 2011, the company's net cash inflow from operating activities was US$7 million, while in the third quarter of 2011, the company's net cash outflow from operating activities was US$10.7 million.

Average advertising revenue per broadcast hour in 2011 was US$1,002, an increase of 48.0% from 2010.

Total revenue in 2011 was US$181 million, an increase of 31.2% from US$138 million in 2010. Advertising revenue in 2011 was US$179 million, accounting for 99.0% of the total revenue in 2011, an increase of 30.0% from US$138 million in 2010.

Mr. Li Limin, Chairman and CEO of the company, said: We are pleased to see that all major operating indicators of China Television have improved significantly in 2012. Through careful contract negotiations, we successfully optimized the coverage of our own media networks to the ideal 20 cities, and added mobile TV media resources in 41 cities through various forms of cooperation. China Television has high market penetration in these cities and can use its high level of commercialization to achieve our most favorable media utilization. The company's revenue hit a new high in the fourth quarter of 2011, further proving that China Television, as one of the most influential advertising platforms in China, has been widely recognized by advertisers. Although the performance in the first quarter of each year is often adversely affected by seasonal factors, we firmly believe that through the solid foundation we have laid in the fourth quarter of 2011 and throughout the year, the company will continue to develop steadily on a healthy track. rdquo;

Mr. Wang Yan, Senior Vice President of Finance of China Television Media, added: 2011 ended with profitability in the fourth quarter, which is the result of our efforts in finance and operation management throughout 2011. The results of the company's unremitting efforts to improve media time utilization and reduce media costs are fully demonstrated, and we are confident that the good development momentum in 2011 will continue into 2012.& rdquo;