Yesterday, China New Media Corp. announced that one of their consolidated affiliates, Shanghai Vastitude Advertising & Media Co., Ltd., entered into a purchase agreement. This agreement is to acquire five outdoor billboards in the city of Shanghai from Haosheng Advertising Co., Ltd. The agreement will allow China New Media Corp. to penetrate the largest and most developed cities in Southern China.
Mr. James Wang, Chairman and CEO of China New Media Corp., said, “We are very pleased to announce this acquisition and the expansion of our media platforms in the city of Shanghai. This acquisition marks our entry into one of China’s largest advertising markets, and represents a strategic step in our growth plan to formally enter the most developed cities in Southern China. We feel confident that it will contribute at least $1.2 million to our revenue on an annual basis. After this acquisition we will further develop our brand recognition and market share in China’s outdoor advertising industry.”
The expectation is that the billboards will contribute a minimum of $1.2 million to China New Media Corp.’s revenues each year. Under this agreement, Haosheng Advertising Co., Ltd. agreed to transfer five outdoor billboards and all associated outdoor advertising contracts they have previously signed to China New Media. Haosheng also agreed to assist China New Media Corp. in obtaining all governmental approvals required for the operation of the billboards in Shanghai.
Haosheng has delivered the billboards to China New Media in anticipation of the execution of the purchase agreement. The five billboards underwent placement in key locations within Shanghai following China New Media Corp.’s evaluation. One of the billboards is the only commercial billboard near the Oriental Pearl Broadcasting & TV Tower. This Shanghai landmark attracts thousands of visitors annually.
Headquartered in Dalian in Northeastern China, China New Media Corp. is an advertising media company. They own and operate Dalian’s largest outdoor media network encompassing more than 600 bus shelters furnished with billboards and displays; 130 taxi stops with displays, as well as 13 large-size billboards, including 3 large-size LED displays at major traffic conjunctions. China New Media Corp. also furnishes more than 400 buses with advertising posters and 28 metro-trains throughout Dalian Metro Lines.