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It may be a little early to start thinking about the 2008 Beijing Olympics but advertisers are gearing up and Renhuang Pharmaceuticals, Inc. (RHGP) is ready. RHGP has incorporated Olympic advertising into their growth plan. For this company that sells traditional Chinese medicines, the impact could be huge.
I think it is time to put the recent purchase of prime time advertising slots in perspective to understand what this means for the company. These slots are on Central Chinese Television’s (CCTV) and on two of the national television network’s most heavily watched programs. This would be similar to advertising on the national evening news and Sixty Minutes in the U.S.
RHGP will have these prime time advertising slots during the 2008 Beijing Olympic Games. This will give RHGP both international and domestic exposure. RHGP bought time in 7.5 second and 15 second air times follow CCTV’s evening news and the news magazine show: “Topics in Focus” both of which are top-rated television programs in China.
I asked our research department to look into the potential impact of Olympic advertising and I think you will agree – and you probably already knew – this is a staggering opportunity.
Nielsen recently indicated that in China advertising spending on the mainland is expected to reach new highs with the run-up to the 2008 Beijing Olympics.
This is called the “Olympic effect” and the third quarter alone saw advertising spending on the three major media of print, TV and radio total 115.7 billion yuan ($15.7 billion), up 14 percent from the same period last year.
RHGP is taking a spot right long with the major corporations who are participating in predicted higher spending to increase their exposure during the Games.
Richard Basil-Jones, managing director of New York-based Nielsen Media Research Asia Pacific, said: “The 2008 Olympics in Beijing will be a major boost to the development and adoption of new media by Chinese people.”
“The use of IPTV, mobile telephones, outdoor and many other forms of new media will be undertaken and utilized to such levels that it will launch China into the forefront of new media development globally.”
This really hit home where RHGP is concerned: Bao Xiaoqun, the managing director of development and research department at Shanghai Media Group, said that, compared with the previous Olympic Games, the viewing level in China during the 2008 event is expected to reach a historic high – a great opportunity for companies to gain market exposure.
To listen to RHGP’s definitive plan which has media at the top of the list can be heard at our Stock Guru Podcast.
The CEO of RHGP indicates in specific terms that his company is headed for the AMEX or the Nasdaq. Raising brand awareness is his number one priority.
RHGP controls an estimated 70% of China’s natural resources of Acanthopanax (also known as Siberian Ginseng), the Company possesses a unique competitive edge and occupies a dominant market position in Acanthopanax-based medicinal and nutraceutical products.
Sources:
Pub Med and Renhuang Pharmaceuticals, Inc.
No. 281, Taiping Road, Taiping District
Harbin, Heilongjiang Province, 150050
P. R. China
About Renhuang Pharmaceuticals, Inc.: Renhuang Pharmaceuticals, located in Harbin of Heilongjiang Province in Northeast China, is a leading integrated developer, manufacturer and distributor of a broad line of high-quality nutraceutical, natural medicinal and bio-pharmaceutical products. The Company provides three major product lines including the Acanthopanax-based natural medicinal products, Shark Power Health Care series and Traditional Chinese Medicines. Renhuang’s key product line is Acanthopanax-based products, an effective natural medicine in treating depression and melancholy and offering various other health benefits. By controlling an estimated 70% of China’s natural resource of Acanthopanax (also known as Siberian Ginseng), the Company has a dominant market position in Acanthopanax-based natural medicines. The Company distributes its products through a multi-layer sales network of over 2000 sales agents. Its products are not only sold nationwide but also exported to Russia and Southeast Asia. Renhuang has established a multi-channel research and development infrastructure composed of in-house researchers, a post-doctoral working center, and collaboration with well known institutions and scientists. The Company has achieved a significant progress in research & development of standard extraction, separation of effective components, and medication with specificity. Several of these products have already been submitted for approval by the State Food and Drug Administration (”SFDA”). These products are expected to have a substantial upside growth potential due to their insufficient supply in China. In manufacturing, the Company strictly follows the international GMP certified quality standards and system by utilizing cutting-edge technologies, the state of the art equipment, and the proprietary innovative and award winning processes.
Safe Harbor Statement: This press release contains certain statements that may include ‘forward-looking statements’ as defined in the Securities Act of 1933, and the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included herein are ‘forward-looking statements.’ Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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