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Star East Technology Ltd blog: Xinhua Finance and the Central Motion Pictures denied media alliance

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Recently, a foreign news, the media Xinhua Finance (XFML.Nasdaq) that the China Film Group ( "Central Motion Pictures Group") establishing a strategic alliance, the future will be in the film development, production and overseas sales, distribution, and other fields cooperation . Xinhua Finance CEO Fulaidibuxi media (Fredy Bush) even said: "China Film Group chairman of the Board of Trustees has authorized three-for Xinhua Finance, the media representative of the <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />United States to speed up the joint production with the related negotiations." And the Central Motion Pictures Group Foreign Affairs in charge of the directors, deputy general manager of La Peikang yesterday in the "Business News" said in an interview, Central Motion Pictures Group meeting on the matter has never been discussed, he has not heard of the matter, the media do not understand Xinhua Finance.

Xinhua Finance spokesman Minqi news media told this reporter that specific cooperation with the Central Motion Pictures Group agency for the company and Sino-US co-production expert David Lee (David U. Lee), a subsidiary of creating cooperation - Xinhua media Entertainment. Xinhua media and entertainment is a film production and investment company, with its headquarters located in Beijing, with branch offices in Los Angeles.

Zeng Min Qi also said that the cooperation with the Central Motion Pictures Group of Xinhua Finance, most media has been one of the five major business areas of content services, and cooperation projects that have been ongoing.

Directed by high-level against the response has Min Qi said: "I do not know." And insisted that if South Korea does not authorize the President of the three-it is impossible in the case quoted in the press release.

However, it was strange that the media was stressed to Xinhua Finance, "in revenue, profit and development prospects brings us a great role in promoting" the alliance has not been in the United States Securities and Exchange Commission (the "SEC") the record, and only the Nasdaq Stock Market publish a press release.

"Specific reasons unclear." Minqi have repeatedly expressed the need for legal advice department, as at press time, the other side has not been answered.

For the vast majority of domestic investors, Xinhua Finance since the establishment of the media will be very mysterious. Perhaps until April 28, 2007, the official Xinhua News Agency issued a statement, general manager Room, the outside world was completely eliminated, "Xinhua Finance is the subsidiary bodies," erroneous understanding.

At that time, Xinhua said, "The agency has held some subordinate units have Xinhua Finance Limited shares. Now, and all units are detached from the Xinhua Finance Limited shares, and other relations. Future with the Xinhua News Agency and Xinhua Finance subsidiary If business units, in accordance with China's relevant laws and regulations for. "

According to foreign news, in May 2007, the media Xinhua Finance Xinhua Finance Limited, the parent company of the Nasdaq listed in the prospectus as the original intention to conceal CFO Xie Chen Han (Shelly Singhal) undergoing SEC review of the history, and triggered no less than five class action law firm.

Then there was the disclosure of the company in the United States acquired the financial consultancy firm Glass Lewis & Co. Two senior management staff announced his resignation from the same problem.

And February 13, 2008 Xinhua Finance in the 2007 media fuels virtually in the fourth quarter, ending December 31 last year, this quarter, Xinhua Finance media net profit rose 34 percent, but did not reach Analysis division had earnings per share of 0.18 dollars expected. At the same time, the media is expected to Xinhua Finance, the 2008 first quarter revenue of 25 million US dollars to 30 million US dollars, below analyst expectations of 41.53 million US dollars.

A securities analyst said that in this context, the Central Motion Pictures Group has not yet been confirmed by the alliance "intriguing."

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• #1 Comment from blogger412 
  4/23/08 1:18 AM | Permalink

  XFMedia had corrected the inaccurate article above and had issued a letter to China Business News demanding that the newspaper correct the inaccuracies in its article. See its original statement below:
  
  In response to the article published by China Business News on Page C1 on April 17 and 18, 2008, Fredy Bush, Chairman and CEO of XFMedia (NASDAQ: XFML) today issued the following statement:
  
  “The allegation in the article published by China Business News that there is no relationship between XFMedia and China Film Group is incorrect.  In fact, XFMedia and China Film Group have established a strategic alliance to collaborate in development, production, post-production, domestic and international sales and distribution of film entertainment content. Xinhua Media Entertainment, headed by David U. Lee, is the subsidiary of XFMedia established for conducting the business with China Film Group.
  
  Additionally, China Film Group has authorized Xinhua Media Entertainment to act as its U.S. representative in facilitating the negotiation of potential co-productions.”
  
  XFMedia’s external legal counsel has issued a letter to China Business News demanding that the newspaper correct the inaccuracies in its article.