China Media Monitor

Monitoring industry and company developments in the Chinese media industry

| Fortnightly newsletter | Issue No. 6, Published 29th June 2009 | Published by Heernet Ventures Limited (heernet.com) | Subscribe at G2Mi.com |

News

China Youth Media enters into agreement with MOGO Network

Walt Disney agrees HK Disneyland expansion deal with Hong Kong government

VisionChina Media appoints CFO

Star Publications acquires 20% stake in 701Sou

Alibaba Group launches business social networking website

Hotels.com launches Chinese website

Sohu.com Inc. launches 3G channel

China Unicom plans to invest CNY40 billion in Henan province

Shanghai Telecom introduces mobile payment ordering services

Madhouse enters into agreement with Best Tone

Data

Share Price Performance

Deal Sheet

Chinese media market coverage

Heernet Ventures publishes this newsletter as part of its research coverage of the Chinese media industry. You can access more
research on the Chinese media industry from our research website at G2Mi.com.

If you are a media company or financial investor seeking growth opportunities in the Chinese media industry, we can assist you to
ensure that you are successful in identifying and executing the best opportunities. With dedicated teams in both Europe and Asia,
we are well placed to provide ‘on the ground’ assistance and support.

We can help you understand the structure of the Chinese media industry and the key challenges that exist for foreign investors.
We can also assist with deep analysis of key industry segments and assist you in both identifying and negotiating with suitable,
local companies.

For an initial discussion, contact Harjinder Singh-Heer on +44 (0) 208 180 7223 or by email on harjinder@heernet.com.

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 News
Media
China Youth Media enters into agreement with
MOGO Network
25 June, 2009
China-based youth marketing and media company China
Youth Media Inc. has announced that Youth Media (Beijing)
Ltd, a wholly owned subsidiary, has entered into a
syndication agreement with MOGO, an online content
company. China Youth Media will provide MOGO’s youth
content on its Koobee Campus Network.
Walt Disney agrees HK Disneyland expansion deal
with Hong Kong government
25 June, 2009
Walt Disney has agreed a deal with the Hong Kong
government for the expansion of Hong Kong’s Disneyland
theme park. Disney will finance the expansion project while
the government will convert its existing loans into equity.
VisionChina Media appoints CFO
23 June, 2009
VisionChina Media, a large out-of-home digital television
network, has appointed Scott Chen as CFO. Before joining
VisionChina, Chen was an executive director in the
investment banking division of Nomura in Hong Kong.
Star Publications acquires 20% stake in 701Sou
19 June, 2009
Star Publications has acquired a 20% stake in 701Sou Pte
Ltd for S$5.0 million through an agreement with SPH
Interactive International Pte Ltd, a wholly owned subsidiary
of Singapore Press Holdings Ltd. 701Sou, launched in
November 2008, provides online directory search services in
China through its 701Sou.com website. Star Publications is
a Malaysian consumer publishing company.
© Heernet Ventures Limited. All Rights Reserved
Internet
Alibaba Group launches business social
networking website
17 June, 2009
Alibaba Group, an online ecommerce website operator has
launched Ren Mai Tong, an online community for business
people that integrates e-commerce and social networking
functions. The website features online gaming, interactive
functions, business card production, a cardholder for friends’
business cards and news. It also offers an online payment
service through Alipay for online trading.
Hotels.com launches Chinese website
17 June, 2009
The online hotel booking website, Hotels.com has launched
a Chinese version of its website (Hotel.cn) in cooperation
with eLong.com. eLong.com has offered its membership
platform to Hotels.com users to access information about
7,000 hotels in 400 Chinese cities. eLong, Inc. is an online
travel company in China that provides access to travel
reservation services through web-based distribution
technologies.
Sohu.com Inc. launches 3G channel
17 June, 2009
The online content and search engine company, Sohu.com
has launched a 3G mobile offering. The mobile channel is
run in cooperation with Sohu’s entertainment channel and
offers 3G map and product trials. It is available through
3g.sohu.com.
Telecom
China Unicom plans to invest CNY40 billion in
Henan province
20 June, 2009
China Unicom has announced that China United Network
Communications Group, a subsidiary, will invest CNY40
billion in Henan province over the next 5 years to build a 3G
mobile network and fixed-line broadband network.
Madhouse enters into agreement with Best Tone
17 June, 2009
China Mobile’s Madhouse advertising network has entered
into an agreement with Best Tone Information Service, a
wholly owned subsidiary of China Telecom. Best Tone
provides local search services in China. Madhouse will use
Best Tone's mobile advertising business and serve as Best
Tone's preferred mobile advertising platform partner.

Shanghai Telecom introduces mobile payment

ordering services
12 June, 2009

Shanghai Telecom, a subsidiary of China Telecom, has

introduced an e-surfing mobile payment service in China.
The service enables mobile payments and comes with
integrated mobile ordering functionality.

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Information and analysis on the
Chinese media industry
We publish a wide range of reports and market data on the global media industry. Details on the publications can be
viewed at our online research shop (shop.g2mi.com). In addition to our publications, we can undertake bespoke research
and consulting assignments for clients. Our client base includes leading media companies, private equity firms and
investment banks.

Contact details: Tel: +44 (0) 208 180 7223 | Email: service@g2mi.com | Offices in London and Gurgaon (India)

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 Share Price Performance

Company name Reuters Bloomberg Currency Current % Change

Code Code price
1 mth 6 mth 12 mth

Diversified Media
Sing Tao News Corporation Limited 1105.HK 1105:HK HK$ 0.4 0.0 9.6 -62.6
TOM Group 2383.HK 2383:HK HK$ 0.4 -1.1 33.3 -6.4

Broadcasting
Phoenix Satellite Television Holdings 2008.HK 2008:HKG HK$ 1.1 -9.3 55.1 -3.6
Shaanxi Broadcast & TV Network 600831.SS 600831:SHH CNY 8.0 2.0 40.7 12.0

Publishing
Ming Pao Enterprise Corp Ltd 0685.HK 685:HK HK$ 1.1 -5.2 -8.3 -45.0
Next Media Limited 0282.HK 282:HKG HK$ 1.1 -9.4 19.1 -65.4

Internet
Baidu BIDU.O BIDU:US US$ 293.2 22.2 137.0 -11.7
Alibaba 1688.HK 1688:HK HK$ 14.1 -27.6 158.4 34.6
i-Cable Communications 1097.HK 1097:HK HK$ 0.7 -4.0 35.2 -38.1
Shanda Interactive Entertainment Ltd SNDA.O SNDA:US US$ 58.5 6.4 93.5 140.7
Sina Corporation SINA.O SINA:US US$ 31.8 11.4 38.3 -27.7
Sohu.com Inc. SOHU.O SOHU:US US$ 65.6 21.0 54.0 -10.2
Tencent Holdings Limited 0700.HK 700:HK HK$ 92.8 18.5 86.1 47.9

Online Gaming
China Mass Media IC Corporation CMM.P CMM:US US$ 5.8 83.5 215.2 -71.0
Giant Interactive group Inc GA.N GA:US US$ 8.6 3.6 43.9 -33.0
Kingsoft Corporation Limited 3888.HK 3888:HK HK$ 5.4 -4.8 123.8 36.6
NetDragon Websoft Inc. 0777.HK 777:HK HK$ 5.0 -8.3 75.4 -51.5

Outdoor Advertising
Clear Media 0100.HK 100:HK HK$ 3.1 2.7 167.5 -52.8
VisionChina Media VISN.O VISN:US US$ 5.8 9.6 14.5 -66.6

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 Deal Sheet

A summary of key deals and joint ventures.

Sub Sector Investor Investee Terms Details

June-09 Publishing Star Publications 701Sou Pte Ltd S$5.0million Star Publications, a Malaysian company, publishes, prints
and distributes newspapers and magazines. 701Sou,
launched in November 2008, provides online directory
search services in China through its 701Sou.com website.

May-09 Online Media Ctrip.com International, Home Inns & Hotels HK$50 million Ctrip.com International Ltd provides online travel services
Ltd (China) Management Inc. (additional 9.52% for accommodation, airline tickets and package tours in
(China) stake) China. Home Inns & Hotels Management Inc. develops and
manages economy hotels in China under the Home Inn
brand.

April-09 Telecommunications China Mobile (China) Far EasTone HK$4.1 billion China Mobile is a telecommunications operator that offers
Telecommunications (12% stake) fixed, wireless and broadband services in China. Far
EasTone Telecommunications is a Taiwanese telecom
operator.

April-09 Publishing Pearson PLC (United Wall Street English US$145 million Pearson PLC is an international media company engaged in
Kingdom) (China) (100% stake) education, business and consumer publishing in the UK.
Wall Street English is a Chinese subsidiary of Wall Street
Institute and operates 39 English language training centres
in 7 Chinese cities.

April-09 Broadband China Broadband, Inc. AdNet Media n.d China Broadband Ltd. provides cable broadband services
Technologies Co. and publishes digital and analogue programme guides in
Ltd. the Shangdong province of China. AdNet Media
Technologies Co. Ltd. is a Beijing-based provider of
advertising content to Internet cafes.

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