In 2010, the media and advertising industries experienced stable and healthy growth in tandem with the rapidly expanding PRC economy, exhibited by a steady increase in revenue among printed media enterprises across the country. In this favorable climate, we strengthened our overall competitiveness in both the traditional and new media advertising markets through reinforcing our integrated printed media advertising platform, developing our digital media business and entering the radio advertising market. As a result, the Group recorded a significant year-on-year increase in both revenue and net profit of 14.4% in 2010.

The year marked not only the tenth anniversary, but also a new era of development for the Group. The Group was successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited, widening the financing channel for our business expansion in the fast growing advertising industry. Capitalizing on this access to the international capital market, the Group attracted various renowned and influential investors, such as New World Strategic Investment Limited, Templeton Strategic Emerging Markets Fund III, LDC, and CCB International Asset Management Limited and thereby obtained valuable capital and a more robust financial position to further our business development and enhance our overall value. These investors have also made telling contributions by offering their management and operating experience in various industries and enhancing our standard of corporate governance.

In addition to the “ten-year” foundation laid down in the past decade, our “Shifang”, or “tenfold capacity”, was also a key to our business development. Our tenfold capacity is represented by our all-round presence in the eight geographical directions (namely east, south, west, north, southeast, northeast, southwest and northwest) as well as sky and earth. Building on our diversified business and comprehensive “Shifang” cooperation network with all kinds of media, we have set ourselves to become an integrated media service provider for advertisers in various industries so as to establish our position as a multi-city operator. We have also striven to acquire a broader audience base and to make an impact on a wider group of people for our advertising customers using our integrated services spanning from advertisement design, content creation, printing and distribution to the organization of events.

While consolidating our strong position as a printed media service provider in second-tier and third-tier cities, we have also fostered additional printed media partners and extended our operation to appropriately capture opportunities in the rapidly emerging radio, internet and mobile phone advertising sectors, as well as the steadily growing television sector. Furthermore, we have expanded the coverage of our media operation through consolidating our customers and media resources. Our determination and strength were shown by the fact that we have secured a 5-year cooperation project with YangGuang DuShi, a subsidiary of China National Radio and a national media enterprise, at the end of last year, and were granted the first internet publishing license for our new media business in Fujian at the beginning of this year. Meanwhile, the Group continued to innovate, introducing mobile reading platforms in order to quickly establish our foothold in the PRC mobile phone market and its 600 million subscribers. Furthermore, we continued to further the development of our client-end reading software for operating the iPhone, iPad and Android operating systems so as to strengthen our media coverage.

Looking forward to 2011, we expect the stable growth of the domestic media and advertising industries to persist as the PRC economy grows steadily and the consumption power of the Chinese public rises. In the future, we will continue to reinforce our market position as an integrated printed media service provider, improve our operations in the internet, radio and television segments, foster more media partners, innovate new media cooperation arrangements, consolidate resources, and further strengthen our comprehensive package sales team. We will provide higher value-added services to our customers while offering appropriate and diversified contents to their audiences. We will also forage in key regions that have been recently supported economically by the central government, such as the Bohai and Gulf of Tonkin regions, Northeastern and Central China and the Southeastern coastal region. As further reforms are expected for the PRC cultural industry, the Group plans to participate in the shareholding restructuring of printed media and consolidate our operational platform through equity investments that will transform our role from an agent or partner to that of a stakeholder.

Leveraging on the Group’s diversified, long-standing and unique cooperative relationship with printed media in various cities, as well as our cross-media network, integrated advertisement design capacity, diversified customer base and deep management experience, we are well positioned to capture the development opportunities arising from the rapidly growing advertising industry and our comprehensive cooperation with the media. Therefore, we are confident about creating long-term value for our shareholders and business partners. In the meantime, we will dutifully maintain our high level of corporate social responsibility while offering suitable and appropriate content to the public.

Last but not least, on behalf of the board of directors, I would like to express my sincere gratitude to our valuable shareholders, customers and business partners for their trust and continuing support. I would also like to thank the management and all staff for their professional and selfless contributions. Through our joint efforts and determination, we believe we will prevail and achieve greater success in the future.

Chen Zhi

Chairman, Chief Executive Officer and Executive Director