Banks Fund Hunan DTV Development

Shanghai Securities News, 6/23/08

The China Development Bank (CDB), the China Construction Bank (Hunan) and the Bank of China (Hunan) will provide loans worth RMB 3.3 bln over a 15-year period to the Hunan Cable TV Network Group to be used for the digital upgrade of Hunan's cable TV network. Hunan Cable TV Network Group is majority owned by the Hunan TV & Broadcast Intermediary (000917.SZ).

In a separate announcement, Hunan TV & Broadcast Intermediary has invested RMB 50.08 mln to form joint ventures with 10 county-level broadcast authorities to develop the cable DTV networks of each county.

The company currently has cable TV resources in 43 cities and counties across Hunan province, with close to 2.4 mln subscribers. In the future it plans to invest in cable TV networks in the remaining 68 cities and counties. Currently it has 1.7 mln cable DTV subscribers.

After completing the cable DTV conversion process, the company expects annual revenues from its cable network business to increase by RMB 1.5 bln, and annual net profits to increase by RMB 316 mln.

Keywords: consolidation users Hunan Cable TV Network Group 000917.SZ Bank of China cable TV China Construction Bank China Development Bank conversion DTV Hunan Hunan TV & Broadcast Intermediary television

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