A fortnightly newsletter covering developments in the Chinese media industry. The newsletter is free and is also available for download at G2Mi.com. G2Mi.com is a leading website providing information and analysis on the global media industry.

1. China Media Monitor
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| Fortnightly newsletter on the China Media industry | Issue No. 3, Published 18 May 2009 | Published by Heernet Ventures Limited (heernet.com) |
News
Baidu.com in partnership with China Unicom
China Mobile signs agreement with Guangdong government to invest CNY80 billion
Youku.com plans to launch 3G mobile television programmes
TOM Group plans to acquire remaining 35% stake in TOM Outdoor Media Group
China launches mobile number portability trial in the Hainan region
Huawei launches social networking website in China
Lingo Media Corporation forms strategic alliance with Shanghai Yangpu government
Perfect World Co. Ltd plans to launch Fantasy Zhu Xian, a 2D MMORPG
TM Entertainment and Media Inc enters agreement with Hong Kong Mandefu Holdings Ltd
China Techfaith Wireless Communication Technology Ltd plans to launch 16 mobile games
China Mobile forms strategic alliance with Taiwan’s FET
Data
Share price performance
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
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2. China Media Monitor
News
Baidu.com in partnership with China Unicom TOM Outdoor Media Group, which operates in advertising,
Date 15 May, 2009 will become a wholly owned subsidiary of TOM Group Ltd.
Baidu.com, the Chinese search engine, has entered into a
partnership with China Unicom, a telecommunications ITN enters agreement with Foreign Language
operator, to jointly develop wireless search services. Teaching and Research Press
According to the agreement, China Unicom’s Shanghai Date 07 May, 2009
branch will support Baidu’s search engine on its 2.5G and
3G portal sites to offer quick search services to China ITN, an English language publisher, has entered into a
Unicom’s subscribers. The companies will also cooperate in partnership agreement with Foreign Language Teaching and
other services including brand promotion, 3G wireless Research Press to provide 60 hours of multimedia content
search, the introduction of new products, and research and for mobile, web and DVD educational resources. The
development of industrial standards. service will be offered in 200,000 schools and 3,000 higher
education colleges.
Baidu.com has also entered into a cooperative agreement
with 4 mobile phone companies (Samsung, Lenovo, Tianyu
and MediaTek), for wireless search development in China. NetDragon Websoft Inc. launches English
According to the agreement, Baidu.com, Samsung, Lenovo expansion pack for Eudemons Online
and Tianyu will jointly develop wireless search client Date 08 May 2009
software. The icons for the developed software will be set NetDragon Websoft Inc., an online game developer and
on the menus of mobile phones manufactured by those operator in China, has announced the launch of The Divine
companies. Baidu.com and MediaTek will also jointly Path, an English expansion pack for its online fantasy game,
develop a search service based on MediaTek’s operating Eudemons Online. The game is already available in 6
system. languages including Portuguese, Malay, Indonesian and
Chinese and is traded in international markets.
Youku.com plans to launch 3G mobile television
programmes China Mobile opens registration for 139.com, a
Date 14 May, 2009 social networking website
Youku.com, an online video website, has announced that it Date 08 May, 2009
will offer television programmes to its 3G mobile users. China Mobile has announced the start of registration for
The company has also signed an agreement with China 139.com, a social networking website operated by its
Telecom Corporation Ltd to produce a 3G TV channel, Internet subsidiary. The website offers 10 applications
which will be launched later this month. including photo albums, blogs, music, voting and gift
sending. Only China Mobile subscribers can register.
TOM Group plans to acquire remaining 35% stake
in TOM Outdoor Media Group China Telecom and Toocle.cn in joint venture
Date 14 May, 2009 Date 14 May, 2009
Tom Group Ltd, a diversified media company, has Toolce.cn, a B2B e-commerce portal operated by NetSun,
announced that it plans to acquire the remaining 35% stake and China Telecom, a telecom operator, have entered into a
in TOM Outdoor Media Group through TOM Outdoor joint venture to promote technological development in
Media Holdings (a subsidiary), from Singapore Press China’s rural areas. The company has made an initial
Holdings for HK$60 million. Following the acquisition, investment of CNY10 million. Toocle.cn and China
Telecom also plan to develop a joint venture Internet portal.
© Heernet Ventures Limited. All Rights Reserved

3. China Media Monitor
TM Entertainment and Media Inc enters agreement
with Hong Kong Mandefu Holdings Ltd
China launches mobile number portability trial in
Date 04 May 2009
the Hainan region
TM Entertainment and Media, Inc. has announced a share
Date 11 May, 2009
exchange agreement with Hong Kong Mandefu Holdings
Ltd (China Media Express), an operator of television The Hainan Provincial Administration of Communications
advertising networks on inter-city express buses in China. has announced the launch of a mobile number portability
According to the agreement, TM Entertainment will issue trial in the region. The service is currently offered on a one-
19.5 million common shares and will pay HK$20.0 million way trial, which allows the users of one operator to select
in cash for 100% of China Media Express’ outstanding the services of any other operator but keep the same number.
equity. The transaction is expected to be closed in Q3 2009.
As per the agreement, TM Entertainment will change its
Huawei launches social networking website in
name to China Media Express Holdings Inc.
China
Date 11 May 2009
China announces a 60% cut in fixed-line Internet Huawei, a Chinese telecommunications solutions provider,
settlement fees in June 2009 has announced the launch of aimi.com, a social networking
Date 13 May, 2009 website. The website targets Chinese white-collar netizens
China’s Ministry of Industry and Information Technology and offers features such as photo albums, blogs, groups and
has issued a notice to China’s 3 telecom operators to cut voting in polls.
fixed-line Internet settlement fees by 60%, from CNY0.15 to
CNY0.06 per minute, from June 2009. Telecom service
China Mobile signs agreement with Guangdong
providers are required to pay Internet settlement fees to the government to invest CNY80 billion
carriers.
Date 15 May, 2009
China Mobile Communications Corporation, a telecom
China Mobile enters agreement with the Shanghai operator, has entered into an agreement with the Guangdong
government to invest CNY31 billion provincial government to invest CNY80 billion over the
Date 12 May, 2009 next 5 years in the development of the IT industry and
construction of a TD-SCDMA network in the province.
China Mobile Ltd, a telecommunications operator, has
According to the agreement, CNY3 billion will be invested
entered into an agreement with the Shanghai government to
in the construction of the TD network and CNY1 billion in
invest CNY31 billion in the construction of a TD-SCDMA
the construction of 3G technology infrastructure for the
network in the city. According to the agreement, the
2010 Shanghai World Expo.
investment will be made over 2009-2011, and will include
CNY3 billion for 3G network construction. The company
has already constructed 3,779 TD-SCDMA base stations and SARFT and China Mobile enter agreement
will construct 1,500 more by the end of 2009.
Date 11 May 2009
The State Administration of Radio Film and Television,
Shanghai Telecom and The9 enter agreement through its China Satellite Mobile Broadcasting Corporation
Date 12 May, 2009 subsidiary, has announced an agreement with China Mobile
for the companies to jointly promote TD-SCDMA mobile
Shanghai Telecom, a subsidiary of China Telecom, and
phones with the CMMB function to provide wireless
The9, an online game developer and operator, have entered
streaming video services. China Mobile will manage the
into an agreement to jointly promote and market 3G services
operations of the CMMB service, including fee collection.
in China. According to the agreement, 3G users can pay
through the tolls generated by their mobile phone calls.
© Heernet Ventures Limited. All Rights Reserved

4. China Media Monitor
Ctrip.com International Ltd to acquire additional
stake in Home Inns & Hotels Management Inc
Perfect World Co. Ltd plans to launch Fantasy Zhu
Date 07 May 2009 Xian, a 2D MMORPG
Ctrip.com International Ltd, a travel service provider of Date 05 May, 2009
hotel accommodation, airline tickets and packaged tours of
Perfect World Co. Ltd, an online game developer and
China, has entered into an agreement to acquire an
operator in China, has announced that it plans to launch
additional 9.52% stake in Home Inns & Hotels Management
Fantasy Zhu Xian, a 2D turn-based cartoon MMORPG, in
Inc through a private placement of US$50million.
2009. The game will be based on the novel, Zhu Xian. It
Ctrip.com International Ltd will own an 18.25% stake in
will be first online game to be operated on Perfect World’s
Home Inns & Hotels Management Inc following the
proprietary EPARCH engine.
transaction, which is expected to be closed before 21 May
2009.
China Techfaith Wireless Communication
Technology Ltd plans to launch 16 mobile games
Television Broadcasts and Shaw Brothers form
Date 04 May, 2009
joint venture
China Techfaith Wireless Communication Technology Ltd,
Date 07 May, 2009
a developer of cell phone solutions, has announced that it
Television Broadcasts Ltd, a television broadcasting plans to launch 16 mobile MMORPG titles in June 2009
company, has entered into a 50:50 joint venture with Shaw through One Net Entertainment, a subsidiary. The games
Brothers to form a film production company, Concept will be in the action and mystery genres and will be offered
Legend Ltd. The joint venture company will produce for free download on the company’s 798uu.com web portal
motion pictures for worldwide distribution. Television (although gamers will be charged for play time, weapons
Broadcasts Ltd will invest up to HK$20 million in Concept and props).
Legend Ltd.
China Mobile forms strategic alliance with
Lingo Media Corporation forms strategic alliance Taiwan’s FET
Shanghai Yangpu government
Date 01 May, 2009
Date 06 May, 2009
China Mobile has entered into a strategic agreement with
Lingo Media Corporation, a provider of online and print FET, a Taiwan-based telecom operator. According to the
education products and services, has entered into a strategic agreement, China Mobile will acquire a 12% stake in FET
alliance with the Yangpu government to provide English for NT$17.77 billion in cash. The deal is still awaiting
language learning services through Speak2Me Inc, a wholly clearance from Taiwanese regulators, including Taiwan’s
owned subsidiary. The government will adopt Speak2Me’s National Communications Commission and the Investment
subscription-based customised training platform, which Commission under Taiwan’s Ministry of Economic Affairs.
provides English training services to corporations in The operators will also form a joint venture in China, in
Shanghai, including state-owned enterprises, local municipal which China Mobile and FET will hold 51% and 49%,
corporations, Shanghai district governments and the local respectively.
Shanghai Ministry of Education, for K-12 students.
© Heernet Ventures Limited. All Rights Reserved

5. China Media Monitor
Share Price data
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$ 0.37 13.64 11.94 -67.67
TOM Group 2383.HK 2383:HK HK$ 0.43 22.86 65.38 -18.87
Broadcasting
Hunan TV & Broadcast Intermediary 000917.SZ 000917:CH CNY 15.75 -12.45 43.48 24.71
Phoenix Satellite Television Holdings 2008.HK 2008:HKG HK$ 1.05 17.98 66.67 -16.00
Shaanxi Broadcast & TV Network 600831.SS 600831:SHH CNY 7.44 -0.90 53.77 -30.17
Publishing
Ming Pao Enterprise Corp Ltd 0685.HK 685:HK HK$ 1.08 -1.82 -10.00 -47.83
Next Media Limited 0282.HK 282:HKG HK$ 1.22 24.49 -4.69 -62.35
Internet
Baidu BIDU.O BIDU:US US$ 234.60 18.51 23.56 -35.04
Alibaba 1688.HK 1688:HK HK$ 12.86 50.94 150.19 -13.11
i-Cable Communications 1097.HK 1097:HK HK$ 0.70 16.67 32.08 -43.09
Shanda Interactive Entertainment Ltd SNDA.O SNDA:US US$ 49.51 -5.12 112.85 35.98
Sina Corporation SINA.O SINA:US US$ 26.66 -5.63 2.50 -48.61
Sohu.com Inc. SOHU.O SOHU:US US$ 53.16 6.66 14.99 -33.80
Tencent Holdings Limited 0700.HK 700:HK HK$ 79.95 29.47 69.39 23.28
Online Gaming
China Mass Media International
Advertising Corporation CMM.P CMM:US US$ 3.00 42.86 -30.39 -85.00
Giant Interactive group Inc GA.N GA:US US$ 8.04 5.37 34.00 -48.26
Kingsoft Corporation Limited 3888.HK 3888:HK HK$ 4.70 35.00 109.00 9.00
NetDragon Websoft Inc. 0777.HK 777:HK HK$ 5.94 37.50 128.46 -54.24
Outdoor Advertising
Clear Media 0100.HK 100:HK HK$ 2.68 31.37 19.11 -60.76
VisionChina Media VISN.O VISN:US US$ 5.03 -19.90 -2.71 -74.70
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6. China Media Monitor
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