China's robust economic recovery and an advertising splurge caused by big events such as the World Expo in Shanghai and Guangzhou Asian Games have powered Clear Media to a more than 400 per cent profit surge.
Net profit soared to HK$166 million from HK$31 million a year earlier. But the Hong Kong-listed outdoor advertising company said there was no plan to pay a dividend.
World Expo in Shanghai directly generated 30 million yuan (HK$35.4 million) in turnover and the Guangzhou Asian Games generated 10 million yuan, Clear Media chief executive Han Zijing said. Though there are no similar events scheduled this year, Han said he was confident that growth would be sustained.
He said the firm would invest 800 million yuan in the next two to three years to build or buy more than 10,000 bus shelter panels. The firm will seek other investment opportunities in outdoor advertising formats, including vehicles and subway advertising and outdoor LEDs.
'Seeing the steady recovery of the Chinese economy since the global economic slowdown, we will adjust our business strategy from conservative in 2009 and 2010 to more aggressive,' said Han.
Clear Media said its order book on-hand had already reached 30 per cent of the full-year target for 2011. Han would not reveal the target, but said it was higher than 2010.
'We set up stable co-operation with some big customers,' Han said. 'There are more than 100 customers with annual spending of three million yuan and 11 customers of 20 million yuan.'
