A turnaround by its media unit and disposal of non-core assets helped Global China Group Holdings Limited ('Global China') return to the black and post a net profit of HK$ 162 million for the year ended December 31, 2002 ('Period'). The company posted a net loss of HK$131 million for the nine-month period ended December 31, 2001 ('Previous Period'). Consolidated turnover climbed to HK$1,094 million from HK$1,032 million while operating loss narrowed to HK$79 million from HK$110 million. Of the earnings per share of HK$10.42 cents, the Board of Directors proposed to distribute one cent per share to its shareholders.

Operating profit of the Media Operations amounted to HK$9.9 million for the Period as compared with an operating loss of HK$67.2 million for the Previous Period. Revenue for the Period also witnessed an increase of HK$305.6 million to HK$899 million as compared with the Previous Period.

The turnaround of Newspaper Operations - Sing Tao Newspaper Group Limited - was attributable to the successful cost control measures and product improvement. Lower newsprint cost and better inventory control further enhanced the operational efficiency and profit margin. Contribution from overseas editions of Sing Tao Daily also rose significantly as the global markets, in particular North America, recovered from the repercussions of the 911 incident. The newly set up magazine arm China Touch Media Solutions & Services Limited, whose turnover accounted for more than 10% of the revenue of the Media Operations, also performed satisfactorily.

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Global China formed a strategic alliance with dnmStrategies in April this year. The alliance combines the strengths of the two in areas of media business as well as event marketing. It is expected that the alliance will create synergistic efficiency for the business development of Global China as a whole.

Founded by the region's most experienced team of professionals in conference organization, dnmStrategies is one of the most reputable event consulting and management companies in Asia. The principals have extensive experience in developing high-profile conferences and forums across the Asia Pacific region. 

Through its long-term partnership formed with BusinessWeek, an authoritative business magazine, the company has been the exclusive producer of BusinessWeek's events in Asia. It stands out among its competitors by organizing several world-class forums such as Boao Forum for Asia, the Annual Asia Leadership Forum and a series of seminars specially catered for corporate decision makers and executive managers. These multinational conferences have helped to establish a strong business network and global media relationship for the company. 

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In response to the outbreak of severe acute respiratory syndrome (SARS), an island-wide 'Love Hong Kong, Support the Frontline SARS Combatants' campaign has been initiated by Sing Tao Daily together with over 500 social groups from fields of mass media, professionals, academics, and the commercial sectors. Through a series of meaningful activities, the campaign aims at lifting the spirit of Hong Kong people to fight against the disease hand in hand with the frontline medial officers. The donation received will be given out as financial aids for the victims suffered from SARS and their families.

The campaign pays tribute to all medical officers who have been at the forefront of the battles for months through the following two events:

"Love Hong Kong: Salute to Frontline SARS Combatants", scheduled to be held in mid-June, will merit individuals and institutions, in particular all medical officers, hospitals and universities which have made significant contribution in combating against the virus.

"Inside Stories-the-Battles with SARS", supported by Sing Tao Daily, ATV and Phoenix TV, will report stories of the SARS patients and the recovered, together with their families and medical officers on their painstaking battles against the disease.

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China Touch Media Solutions and Services Limited ('China Touch'), the magazine arm of Global China, is planning to hire more than 100 people following its acquisition of Eastweek magazine in April which will be re-launched towards the end of this year.

Mr. Ho Kwok Fai, CEO of China Touch, revealed that the company had already appointed Mr. Lai Ting Yiu who is currently the Executive Chief Editor of Sing Tao Newspaper Group, as the Editor-in-Chief of Eastweek to oversee the overall operations and editorial matters. He added that the management is in the process of re-adjusting and fine-tuning the editorial direction of Eastweek, trying to rejuvenate the title into a magazine with a mission to reflect the truth and the interest of all Hong Kong people. While keeping the original style intact, the editorial coverage of Eastweek will put emphasis on news and current affairs presented in a livelier format. 'In this respect, we need a team of industry experts to enhance the quality of content so as to achieve our goal,' he said.

In addition, an independent third party editorial advisory board comprises seasoned industry veterans will also be set up to monitor the content of the magazine. 

Commenting on the business potential of Eastweek, Mr. Ho said the magazine, which had more than 10 years of history in Hong Kong, had commanded wide readership base and support from advertisers. He believed that with the new management and editorial team in place, the new Eastweek would be able to capture a significant market share after its re-launch.

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New product from China Touch! Spotlight falls on computer magazine PC Power this time. With the first issue launched on May 8, 2003, PC Power is a weekly publication that specializes in providing trendy IT-related information. Updates on latest products, components and accessories are also included. The new magazine is indeed an ideal DIY guide for PC 'fanatics' who would like to further equip themselves with professional knowledge. 

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Global China appointed Mr. Jim Sui Hing as the Executive Director of the Group with effect from April 24, 2003. Mr. Jim is currently the Managing Director of overseas operations of Sing Tao Newspaper Group Limited and was the Editor-in-Chief of The Standard. Mr. Jim is a seasoned industry veteran, having held senior positions in a number of major local and overseas newspapers and broadcasting companies, such as SCMP, The Oriental Daily News, Hong Kong Commercial Broadcasting Company Limited and Fairchild Television, Vancouver.

In addition, the Group also appointed Mr. Timothy David Dattels as the Independent Non-Executive Director with effect from April 24, 2003. Prior to his retirement in January 2003, Mr. Dattels spent eight years at Goldman Sachs in Asia with the latest position held as Managing Director and the Head of Goldman Sachs' Menlo Park office. During his services with the company, he was also the Head of Investment Banking in Asia and served on its Asian Management Committee. Mr. Dattels held senior positions at First Boston and Sun Microsystems before joining Goldman Sachs.

The Group would like to extend its warmest welcome to Mr. Jim and Mr. Dattels and is confident that with the contribution of their expertise and wise counsel, the Group will continue to make solid progress in its future development.

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