The Group is engaged in asset investment, property development, media, beauty and cosmetics product business.
2006 has been a landmark year for Signal Media's transformation into a China consumer growth story.
During the year, Signal Media developed and executed a new diversified strategy in sectors aimed at capturing China's rapid growth in middle-class spending. The twin effects of China's rapid economic development and the shift in employment patterns from basic blue collar to higher income white-collar jobs is generating unprecedented growth in spending power. Consumer brands, property, media and financial products are amongst the leading sectors to capture this solid spending growth.
1 Media
In April 2006, Signal Media completed the acquisition of Jovian Financial Communications Ltd., an established financial PR firm active in Hong Kong and China. Having an established base of PRC listed clients, Jovian is well positioned to ride on the growth in stock market investment by PRC individuals.
In December 2006, Signal Media made an investment into Guang Yuan Media Holdings Limited (GYM). GYM is China's largest operator of train mounted infotainment displays with over 15,000 panels in operation. GYM has exclusive contracts with more than half of the railway bureaus and expects to cover the majority of China's long distance trains over the next several years. With dominant market share and a 1.3 billion passenger on-train audience, GYM is becoming a major out-of-home media asset in the China market.
2 Consumer Brands
Signal Media's first foray into China consumer brands was a proposal to invest into the XS-EXECS brand in June 2006, which did not complete. The brand is targeted at white collar office workers.
In November 2006, Signal Media announced a China cosmetics partnership with Ms. Cheng Ming Ming of the CMM International, which was later enlarged into a shares and cash offer for the entire company. Ms. Cheng becomes Signal Media's second largest shareholder and brings her authoritative expertise in the China cosmetics market to Signal Media's Board.
Cosmetics is one of the highest growth consumer sectors in China and fits in well with Signal Media's strategy of capturing middle class spending. Signal Media intend to make significant investments into CMM International and look forward to working with Ms. Cheng to further increase brand recognition and performance.
3 Property
One of the best growth opportunities in China has been Macau; a city which has already surpassed Las Vegas as the world's gaming capital and continues to break records in both investment and consumption.
In 2006, Signal Media made two significant investments in major Macau residential projects including a landmark luxury project on Nam Van Lake. Since Signal Media made its investments, Macau luxury property prices have increased dramatically. We believe our two investments in this sector represent solid growth for our shareholders.
As 2006 draws to a close, Signal Media has successfully repositioned itself as a China consumer growth story.
Prospect
In the search for high growth consumer related sectors, the PRC continues to provide the bulk of the opportunities and the run up to the Beijing Olympics will provide exceptional growth. Its management team continues to select, assess and negotiate business opportunities with a view of gaining exposure to the growth trends in the PRC over the next several years and deliver superior returns to shareholders.
updated 14th May, 2008
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