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Public company info - Dahe Media Co. Ltd. - H Shares , 08243.HK

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Dahe Media Co. Ltd. - H Shares, 08243.HK - Company Profile
Chairman He Chaobing
Share Issued (share) 250,000,000
Par Currency Renminbi
Par Value 0.1
Industry Advertising
Corporate Profile Business Summary: The Group is mainly engaged in outdoor media dissemination, terminal dissemination services, outdoor advertising media production and trading of artwork. Performance for the year: For the year ended 31 December 2017, the Group’s turnover amounted to approximately RMB617.9 million (2016: approximately RMB596.37 million). During the year, profit attributable to shareholders increased by 3.5% to RMB32.28 million (2016: approximately RMB31.19 million). The basic earnings per share was approximately RMB3.9 cents (2016: RMB3.8 cents). Business Review: With its abundant outdoor media resources, the Group provides one-stop advertising service covering integrated marketing communication consultation, media publication strategy consultancy, advertising design and production, outdoor mass media dissemination as well as monitoring and evaluation. The media network covers most provinces and core cities across China in the primary forms of community media, outdoor billboards, large LED advertising screens and professional market media, etc. The Group owns the largest interactive marketing platform targeting the medium to high-end communities, which covers the major economically dynamic cities across China. The layout of selfowned community media resources extends to the first-tier cities including Beijing, Shanghai, Guangzhou and Shenzhen, covering many medium to high-end communities effectively and delivering services to the core consumers. The Group also established the community media platform network through constantly integrating community media resources across China, aiming to provide one-stop community media publication solution covering the whole country. The core business of terminal dissemination includes the establishment of terminal SI system, targeted signage system, terminal POP system, terminal props making, large events, exhibition display and commercial display. Trading of artwork includes identifying and discovering genuine artists, packaging of artists, and compilation of online and offline promotion plans based on the positioning of the artists. During the year, the Group’s turnover derived from outdoor media dissemination, terminal dissemination, media production services and trading of artwork amounted to RMB378.08 million (2016: approximately RMB405.94 million), RMB227.32 million (2016: approximately RMB172.77 million), RMB6.4 million (2016: approximately RMB9.68 million) and RMB6.1 million (2016: RMB7.98 million), representing 61%, 37%, 1% and 1% of the total turnover of the Group, respectively. The Group aims to create an O2O smart- media operation platform. Currently, the Group has outdoor media dissemination resources of approximately 150,000 square meters, with the forms of media owned by the Group being social media, outdoor billboards, large LED advertising screens, and professional market media. The business coverage of self-owned media resources has extended to regions including Jiangsu, Zhejiang, Liaoning, Anhui, Shanghai and Beijing. Meanwhile, the Group constantly integrates the outdoor billboard resources across China based on the needs of customers, and its media resources cover most provinces and core cities in China. This enables the Group to consolidate available media resources in professional markets scattered in cities of all levels across China to provide a diversified mix of publication solutions based on specific requirements of various customers in terms of timing and place of advertisement. By leveraging on the Group’s own outdoor LED resource management system and upholding the business philosophy of “creativity + interaction + technology”, the Group is committed to providing efficient, personalized and flexible media publication solutions for the customers. Moreover, the Group also integrates the outdoor LED media resources scattered in tier two, three and four cities across China to establish the LED broadcast network, with an aim to provide customers with one stop outdoor LED publication solution across China with features of “low cost, extensive coverage and high efficiency”. During the period, the average launching rate of the Group’s outdoor media remain stable, with major customers from various industries such as fast- moving consumer goods, media, real estate, finance and tourism. The Group has maintained cooperation relationship with renowned enterprises including China Life, Wuzhen Travel, Wuxi Lingshan, China Union Pay , China Mobile, Longhoo. Net, ICBC, Postal Savings Bank, Yingda Taihe Property Insurance, Red Sun and Suning Electric (蘇寧). The Group utilized its own social media management system to provide customers with one-stop social media placement solutions. In the meantime, the Group established a social media network to integrate community media resources scattering in cities of all levels in the PRC, so as to provide a diversified mix of publication solutions based on different advertisement timings and places of various customers. This allowed the Group to transform fixed and single community dissemination into a model featuring time-sharing, mobility, multi points and Internet access. This business covers Beijing, Shanghai, Guangzhou, Shenzhen, Nanjing, Hangzhou, Shenyang and other cities, and provides the Group with outdoor media dissemination resources of approximately 28,000 square meters. During the year, the Group continued to focus on expansion into sectors including finance, tourism, telecommunications and fast-moving consumer goods. It has successfully signed cooperation agreements with Sujiu Group, Suning, Wuzhen Travel and Gubeishui Town, etc. The “terminal dissemination” service covers terminal survey, solution formation, creative design, implementation and promotion, and result evaluation so as to ensure that all communications reflect and represents the brand’s core concept and appeal at the terminal. During the year, it continued to serve well- known brands such as Microsoft, Alibaba, Wuzhen Travel, Nike, COFCO Group, Yihai Kerry, Meituan, CR Vanguard, Li Ning, Lenovo, LEE, Didi Dache, Beiqi Foton Motor Daimler, Samsung, Haohaizi, Kubota, GAP, Orient Securties, etc. As one of the leading media enterprises in China, Dahe has been adhering to the principles of “building an excellent team, creating fine media products, providing quality service” and offering quality advertising media package and diversified professional services to customers, and was generally recognised and highly praised in the market. Prospects: Since last year, economic growth has continuously slowed down, leading to an increasing need for industrial transformation and upgrades. The market has much expectation for emerging industries. The expansion of consumption and upgrades of technologies have become a pivotal momentum supporting the sustainable and healthy development of the cultural media industry with the media industries entering their medium to long-term prosperity. Meanwhile, to better promote the healthy and rapid development of the media industries, the PRC has carried out a series of supportive and regulatory policies to provide the media industries with relevant incentive measures and guiding opinions for their stable long-term development, igniting and guiding them in their development. Given the trend that the economy in China maintains its growth at a steady pace in the long term, the stable growth of the media industries as the economy grows in China is undoubtable, although short economic periods of volatility and the internal adjustments of the media industries under the impacts of the economic environment are inevitable. The Group remains optimistic about the future development. Through traditional sample survey and new high-technology surveys such as similar audience recognition and interactive tracking, the effectiveness of traditional outdoor and digital outdoor advertisements is increasingly demonstrated and recognized. The Group also continues to actively expand customer resources, having realized a change in customer types. Apart from serving existing customers, the Group also developed and served many leading Internet enterprises, with potential customers from the O2O industry reaching about a thousand. In the future, the Group will continue to expand its business scope, consolidate resources of upstream and downstream industry chain in the advertising industry, and plan platform strategies of Dahe with unremitting efforts committed to the Group’s long- term development.

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