HONG KONG, Sept. 3 /PRNewswire-Asia/ -- Qin Jia Yuan Media Services Company Limited (Stock Code: 2366, hereinafter referred to as "the Group" or "QJY") announced that it has entered into a contract with IMPACT Entertainment (International) Ltd ("IMPACT") to establish a joint venture ("QJY IMPACT") for the purpose of jointly develop the concert and entertainment markets in China, in which QJY has the controlling interests.
IMPACT, which has been established for almost 25 years, is an experienced market leader in Hong Kong entertainment industry with a strong network. Renowned artists under its management include Alan Tam, Hacken Lee and Shawn Yue, all of whom are well known in China. In the past year, IMPACT has organized more than ten concerts in China's major cities including Beijing, Shanghai, Guangzhou and Shenzhen which delivered fabulous results.
Dr. Anita Leung Fung Yee, Chief Executive Officer of QJY, explained that, "The future businesses of QJY IMPACT will comprise of artist agency management and organizing concerts." Dr. Leung further said that, "IMPACT has about 20 years of experience in artists training and agency management. Leveraging on the strengths of both parties, the collaboration between QJY and IMPACT will create a show business platform for emerging artists and artists from Hong Kong, Macau, Taiwan and mainland China. We believe, the quality of IMPACT's international agency management and QJY's strengths in China domestic television stations and cross multimedia, we will be able to nourish a lot of stars of tomorrow." Dr. Leung further elaborated that the business strategy of QJY IMPACT is to undertake the organization of the concerts, whereas in the past IMPACT sold the concerts operation rights to other Chinese domestic show organizers. The profitability of such an "outright sale" business model is less attractive than direct organization. With QJY's comprehensive domestic cross media promotion resources, it is expected that the gross margin of concerts organized by QJY IMPACT will be over 30%. Utilizing QJY's strength in soliciting sponsors for its projects, it is expected that QJY IMPACT will be able to generate considerable sponsorship income from concerts organized by it. Hence, QJY has full confidence in the business.
Mr. David Liu, Chairman of the Strategic Committee of QJY, indicated that concert is currently one of the most popular entertainment in mainland China. The biggest attraction for investing in QJY IMPACT is the short cash-collection cycle of its business model. With QJY's enriching, comprehensive and in-depth cross media resources in mainland China, the investment in artists training business will yield substantial return at a low costs.
Mr. Wallace Cheung Kwok Chung, President of IMPACT Entertainment (International) Ltd., also indicated that, "with the continuing flourishing of the China domestic cultural industry and entertainment market, IMPACT has identifying strong partners to develop this market together. We believe the strengths of QJY in multimedia advertising, program production capabilities, close relationship with domestic television stations and its experience in placing advertisement is a perfect match. With QJY's strengths relationship with television stations, promotional costs of artists and concerts will be reduced and have a better result. More income can also be generated from, for instance, editing concert highlights as television programs for distribution nationwide. We firmly believe, our collaboration will push the domestic entertainment business to an unprecedented high level and further promote the flourishing entertainment market of the PRC."
Mr. Alan Tam, a prominent singer in Asia and a director of IMPACT, is planning to perform in two or three concerts for QJY IMPACT in 2010 to support this collaboration. He believes such concerts will achieve breakthrough results.
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