For 1H2008, the company realized operating income of Rmb362mn, and net profit attributable to parent of Rmb26.13mn, translating into EPS of Rmb0.065.
Core businesses of the company including bus advertisement, automobile service and tour operation after its reorganization, and the company’s profitability had thus been highly improved. As of issuing of the report, integrated gross of the company were 37.08%, among which the business income within advertisement sector was Rmb137mn (+55.96% yoy); year-on-year increase of its gross margin had reached to 64.39%, an increase of 2.13%. On the other hand, operating income for automobile service realized Rmb111mn, gross margin was reported to be 40.89%.
Despite the company’s monopolization of the bus advertisement media resources in Beijing, value towards this had not been fully displayed due to governance and operation disadvantages. Thus it plans to cooperate with the Whitehourse AD to fully develop value of advertisement within itself. We project the company’s annual compound growth rate of net profit to be above 40% in the following three years.