China Media Group StockGuru Profile CHMD.OB
CHMD: I think China Media Group is in one of the most dynamic places in the world for healthcare and their government contract for healthcare education is right on target. One in five people in the world live in China.
Selling advertising to pharmaceutical companies in China is the right place to be.
The Chinese Healthcare Industry is absolutely booming. China’s healthcare industry, which was the seventh largest in the world in 2005, is expected to become the fifth largest by 2010. China has emerged as the fourth largest economy in the world after the United States, Japan, and Germany.
This rapid healthcare sector development is attributable to the pharmaceuticals sector, which recorded a compound annual growth rate (CAGR) of 17.6 percent during 1980-2004.
The pharmaceuticals sector in China is open to global competition and that means the market is there to purchase ad space to support the fundamental healthcare messages China is delivering to its population pursuant to its agreement with the United Nations.
Healthcare needs are strong in China and this generates advertising dollars or yuan. The majority of healthcare services in China are provided through government-run healthcare institutions. Urban employees are covered under government-operated mandatory basic medical insurance system (BIS), co-funded by the employer and employee. The rural population can seek voluntary health insurance under the Central Government’s rural co-operative medical system .
‘Out-of-pocket’ accounts form nearly 60.0 percent of the healthcare expenditure. The total healthcare spending has risen steadily in China from 3.7 percent of the GDP in 1995 to 5.6 percent in 2005, and it is expected to rise to 8.0 percent by 2010.
Because China is proactively encouraging the production of innovative drugs from the traditional Chinese medicine (TCM) sector, CHMD can expect a growth in clients in search of medically related advertising venues.
CHMD has entered into a contract with a trading and distribution company to advertise its herbal medicine product on their hospital sign boards. Herbal medicine represents roughly fifty percent of medical treatment in China.
Growth is robust for both old and new styles of medicine, each rising at an annual clip of 12% or more.
China Media Group has the authority to present the health and education messages to the public, the power to underwrite these messages through advertising – a topic of great interest to pharmaceutical companies – AND it is acquiring an interest in the medium that will present these issues to the public in one of the most heavily populated provinces in China: Hunan.
CHMD is selling ads on these informational billboards and pharmaceutical companies are interested in these prime locations.
Source: China Media Group
China Media Group Corporation
9901 I.H. 10 West, Suite 800
San Antonio, TX, 78230
Hong Kong Office
1803 Chinachem Tower
34-37 Connaught Road, Central
Hong Kong, China
Phone: +852 3171 1209 ext 222
General Information: info@chinamediagroup.net
Investor Relations: ir@chinamediagroup.net
Website: http://www.chinamediagroup.net
Forward Looking Statement: This release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements contain words such as “expects,” “believes,” “anticipates” and “intends.” Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, economic conditions affecting the B2B environment; continued ability to obtain hardware, software and peripherals at competitive costs; the company’s ability to finance its planned expansion efforts; the company’s ability to manage its planned growth; and changes in regulations affecting the company’s business and such other risks disclosed from time to time in the company’s reports filed with the Securities and Exchange Commission. The company does not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in management’s expectations, except as required by law.
Disclosure: Pentony Enterprises LLC has been compensated 1,050,000 restricted 144 shares, shares directly from the company for profile coverage. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
Disclosure: StockGuru.com is owned and operated by Pentony Enterprises LLC,9555 Lebanon Road, Suite 103, Frisco, Texas 75035. Telephone: (214) 458-4258. Web: StockGuru.com. Email: Publisher@stockguru.com.