ChinaMedia Group StockGuru Profile CHMD.OB
CHINA MEDIA GROUP CORPORATION filed an 8-K with the SEC on July 17, 2007. Link Here.
This 8-K is worthy of review and has significant positive implications for CHMD both for the short term and the very long term.
On July 14, 2007, China Media Group Corporation entered into a Stock Right Transfer Agreement with the shareholders of Conwood Industrial Limited (”CIL”) to acquire 70% of the issued and outstanding shares of CIL. The consideration for the acquisition of these shares shall be RMB 13 million. Under the terms of the Agreement, the closing of this transaction is subject to satisfactory due diligence by the Company.
CIL is a company registered in Hong Kong, which owns 49% of a joint venture company (the “JVC”) in China that owns and operates a microwave network in Hunan province and has a 25% interest in a digital television channel.
It looks like China Media Group is doing more than capitalizing on its exclusive agreement with China to promote health education issues: it is creating alliances that will develop a strong company independently of the United Nations’ Millennium Development Goals Program, which named this project The Great Wall of China Project .
This agreement has the potential to provide China Media Group with an outlet in which it has an interest for its health education and awareness messages in addition to providing CHMD with a very nice long term investment.
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 an important province in China: Hunan.
Rural Hunan and Urban Hunan
Hunan in Central China is a spot designated for intense urban growth in the coming years as development shifts from Beijing and Shanghai to other regions of China.
The combined gross domestic product (GDP) of the six central Chinese regions—Shanxi, Henan, Anhui, Hubei, Hunan and Jiangxi—reached 4.3 trillion yuan (US$0.56 trillion) in 2006, making up 20.5% of the country’s total GDP for the year. This represents a slight increase on the six regions’ share of the national economy during the previous year, and reverses a declining trend that started in 2000. The six central Chinese regions occupy one tenth of China’s landmass, and are home to 28.1% of the country’s population.
Significance: With the implementation of the “rise of central China” program, the economy of the central Chinese regions has been speeding ahead, driven by unusual above-average investment growth that has been achieved in a tightening macroeconomic environment. As new economic stimuli targeting these regions are expected to be put in place this year, the six central regions are likely to see continued high growth well into the next few years.
China provides an investor the opportunities missed in the United States … and CHMD’s 8-K filing on July 17, 2007, offers a fascinating look at the possibilities of alliances in the new investment frontier of China.
CHMD is selling ads on these informational billboards and pharmaceutical companies are interested in these prime locations.
The Chinese Government, pursuant to the United Nations’ Millennium Development Goals Program, named this project The Great Wall of China Project .
CHMD is positioning itself to develop its Health Education Message and to retain important assets once that project is completed. Smart, smart, smart as China hurdles itself towards the largest middle class this world has ever seen and CHMD is in the big middle of that incredible state sponsored urbanization.
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.
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