China Xinhua News Network (CNC) aims to generate substantial income from advertising in five years, even though CNC, launched two years ago, has yet to profit from advertising.
In December, the television arm of Xinhua injected the assets of its Asia-Pacific channels into Hong Kong-listed Tsun Yip, a waterworks engineering firm.
Last week, Tsun Yip changed its name to CNC, 'based on the company's new business direction'.
'We hope the revenue [from the media business] will exceed that of Tsun Yip's water utilities,' said Wu Jincai, deputy editor-in-chief of Xinhua and president of CNC. 'Tsun Yip's profits amount to about HK$12 million a year. I am confident we will do better than that.'
Wu said CNC did not start an advertising service in the past two years because its brand was new and its influence limited.
'But now that our TV programmes have entered 57 countries and regions, the time is ripe,' he said.
CNC would not rely fully on advertising and would also seek revenues through conferences and related activities, Wu said.