Hunan Cable TV Network Gains CNY 3.3 bn Loans from Banks

Tag : cable joint

The fifteen-year credit loans will be mainly used for constructionof digital TV networks in Hunan province.
Hunan TV & Broadcast Intermediary lately announced that it hadset up joint ventures in ten counties such as Dong'an andTaojiang in cooperation with local cable TV carriers with totalinvestment of CNY 50.07 million.
So far Hunan TV & Broadcast Intermediary has owned cable TVnetwork resources in 43 cities and counties in the province,covering 2.4 million cable TV subscribers. As the company isquickening its pace in network coverage, its combined revenues ofcable TV business will grow dramatically.
Long Qiuyun, chairman of Hunan TV & Broadcast Intermediary,discloses that the province by far has recorded 1.7 million digitalcable TV users while the analog-to-digital network transformationis moving forward smoothly.
Besides that, Hunan TV & Broadcast Intermediary is takingeverything in its power to research and develop more new functionsand diversified businesses based on digital TV network. The companyhas come up with several value-added services such as mobile TV,household banking, TV games, and rotating TV.
The company's long-term strategy shows that it will complete theanalog-to-digital cable TV network transformation by 2010.
Mr. Long notes that the analog-to-digital TV network transformationproject in Hunan consists of six parts: providing free set-topboxes for 4.3 million cable TV subscribers, setting up anintegrated business platform, establishing front-end systems in 15cities, building up sub-front-end systems in 88 counties, upgradingthe cable TV networks of the province, and rebuilding the6,000-kilometer broadcasting backbone network of the province.
In terms of the feasibility study report of the project of thecompany, with completion of the project, the company will see anincrease of CNY 1.514 billion in sales each year, adding to new netprofits of CNY 316 million.
Industry experts forecast that sales from cable TV network will hitCNY 3 billion each year three to five years after the upgrading andreconstruction of the network. And the rate is forecast tocontinue.
Mr. Long said that digital cable television business will developquickly by the significant investment of bank. The companypreviously disclosed the feasibility study report which says thatdigital cable network business will increase average CNY 1.514billion additional income each year after conversion of digital TV,and CNY 316 million of annual profit.
From www.cnstock.com, Page 1, Monday, June 23, 2008info@SinoCast.com Morning Coffee with TradingMarkets -- Free Newsletter