Global Sources: Company Background
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Profile of Business Media China August 2007 Asian Business Media Tracker Profile of Business Media China Asian Business Media Tracker COMPANY BACKGROUND 2 COMPANY HISTORY – KEY MILESTONES 4 o Weekly Newsletter RECENT DEVELOPMENTS IN STRATEGY 5 o Industry Reports KEY PRODUCTS AND MARKETS 6 Update on M+A MAJOR COMPETITORS 10 activities FINANCIAL DATA (AS OF 31 JULY 2007) 11 Media regulations in China FUTURE DEVELOPMENTS 13 India round-up 14 Japan round-up SENIOR MANAGEMENT Development in CONTACT INFORMATION 14 online business o Profiilles of Majjor B2B FIGURE 1: STOCK PRICE MOVEMENT IN THE PAST 12 MONTHS 11 Mediia Companiies iin Asia Paul Woodward Asia Principal o Tracking of listed B2B [email protected] media companies in Asia Mark Cochrane o Key Exhibition Venues Consultant in Asia [email protected] o Directory of the Top Kerry Wong 25 Exhibition Research Assistant Organisers in Asia [email protected] o List of the Top 100 Trade Fairs in Asia o B2B Online Media Report o B2B Publishing Report Business Strategies Group Ltd, Rm 1101, Wilson Hse, 19-27 Wyndham Street, Central, HK 1 Tel: 852 2525 6120 ● Fax: 852 2525 6171●[email protected] ●www.bsgasia.com This document and the information it contains may not copied, reproduced or redistributed in full or in part by any organisation without the express written permission of Business Strategies Group Ltd. Profile of Business Media China August 2007 Company background1 Based in Stuttgart, Germany, Business Media China (BMC) organises exhibitions, publishes B2B trade magazines and manages an outdoor advertising network in China. The company was founded by the key shareholder, Mesago Holding GmbH in July 2004. Mesago is owned by Business Media China founder, Klaus M. Hilligart. Since 2004, the company has expanded largely through acquisitions, but also through license agreements and developing its own exhibitions and conferences. Revenues in 2006 were EUR 7.5 million compared with EUR 2.1 million in 2005. The company states that 24% of revenues are generated from the exhibition and publishing business and 76% of revenues are from its outdoor advertising network at airports and railway stations across China. BMC has set aggressive revenue targets for 2007, stating that it expects to post revenues of EUR 25-30 million. The company has 230 employees of whom approximately 180 are based in offices across China. The company has been publicly traded since it took over a shell company on the Frankfurt Stock Exchange at the time of its founding in 2004. Since that time, BMC has quickly acquired or established a network of subsidiaries and associated companies. BMC manages its network of airport advertising sites through three companies – China Advertising (100% owned by BMC), BMC Flying Dragon Advertising (a joint venture of which BMC owns 51% which was previously named China Airport Advertising) and China Railway Media (a joint venture 60% owned by BMC). The company has secured the rights to operate a network advertising sites at airports in Beijing, Shanghai, Qingdao, Hangzhou and Chengdu. BMC’s exhibitions and publishing is managed through four companies – Baiwen Exhibitions (55% owned by BMC), Zhenwei Exhibitions (51% owned by BMC), Herong Exhibitions (70% owned by BMC) and Beijing Capital Exhibition also know as CEICO (55% owned by BMC). These companies organise key events for BMC such as China Mining, China Commercial Vehicles and China Beauty Week. 1 Source: Business Media China website www.bmc-company.com and BSG interview Business Strategies Group Ltd, Rm 1101, Wilson Hse, 19-27 Wyndham Street, Central, HK 2 Tel: 852 2525 6120 ● Fax: 852 2525 6171●[email protected] ●www.bsgasia.com This document and the information it contains may not copied, reproduced or redistributed in full or in part by any organisation without the express written permission of Business Strategies Group Ltd. Profile of Business Media China August 2007 Table 1: BMC company structure Source: BMC company website Business Strategies Group Ltd, Rm 1101, Wilson Hse, 19-27 Wyndham Street, Central, HK 3 Tel: 852 2525 6120 ● Fax: 852 2525 6171●[email protected] ●www.bsgasia.com This document and the information it contains may not copied, reproduced or redistributed in full or in part by any organisation without the express written permission of Business Strategies Group Ltd. Profile of Business Media China August 2007 Company history – key milestones Year Milestone July 2004 BMC founded by Klaus Michael Hilligardt. Sept 2004 Acquires 55% stake in Shanghai Baiwen Exhibitions. Nov 2004 Acquires 55% of CEICO, an exhibition organizer. Sept 2005 BMC secures rights to publish China Mining Journal. Oct 2005 BMC forms BMC Flying Dragon joint venture with Chinese partners. The new company will focus on operating a network of advertising sites at Chinese airports. Nov 2005 BMC subsidiary, CEICO, selected to organise a commercial vehicle exhibition in China. Mar 2006 BMC Flying Dragon secures licensing agreements for advertising at four key airports in China in Beijing, Shanghai and Xiamen. Nov 2006 BMC secures option to operate advertising space at China’s 20 largest railway stations. Mar 2007 BMC acquires 70% stake in TC Gruppe, a German event management and communications company. Mar 2007 BMC organises first Uranium China conference. Business Strategies Group Ltd, Rm 1101, Wilson Hse, 19-27 Wyndham Street, Central, HK 4 Tel: 852 2525 6120 ● Fax: 852 2525 6171●[email protected] ●www.bsgasia.com This document and the information it contains may not copied, reproduced or redistributed in full or in part by any organisation without the express written permission of Business Strategies Group Ltd. Profile of Business Media China August 2007 Recent developments in strategy BMC’s current strategy in China has two key components: winning outdoor advertising licenses and acquiring and developing exhibitions. The majority of its capital and human resources focused on these two objectives. Focus on advertising business growth According to the company, three quarters of its revenues 2 come from its advertising businesses. So it appears likely that BMC will focus its resources on building its advertising business. The company is already operating outdoor advertising sites at railway stations in Beijing, Tianjin and Shijiazhuang. In late 2006, BMC was granted the right to develop and modernise the advertising networks at railway stations across China. The company will work with its joint venture partner, China Railway Century Media Company, to concentrate initially on the top 20 railway stations in China. China Railway Century Media on behalf of the Beijing Railway Administration (BRA) oversees advertising in China’s railway stations. Through its joint venture, BMC Flying Dragon, BMC is simultaneously building a similar advertising network at China’s airports. The company now controls significant portions of the advertising space at airports in Beijing, Qingdao, Shanghai, Xi’an, Hangzhou, Chongqing and Chengdu. Launching and acquiring exhibitions Although the exhibitions business is growing more slowly than the advertising business, exhibition margins are better than those in the advertising business unit. As a result, BMC is continuing its efforts to launch new events such as China Uranium. BMC is also acquiring exhibitions including the China International Optoeletronic Expo (CIOE) of which BMC purchased 70% in December 2006. It also co-organises a number of exhibitions including China Mining which is co-organised with the Balloch Group and GIMT+AMB which is a machine tool exhibition organised with Messe Stuttgart. Several of these exhibitions are supported by trade titles published by BMC under license in China (e.g. China Mining Journal and ICN China, a cosmetics title). 2 Note: With regards to its advertising business, it is unclear if BMC is referring to fees or billings. Business Strategies Group Ltd, Rm 1101, Wilson Hse, 19-27 Wyndham Street, Central, HK 5 Tel: 852 2525 6120 ● Fax: 852 2525 6171●[email protected] ●www.bsgasia.com This document and the information it contains may not copied, reproduced or redistributed in full or in part by any organisation without the express written permission of Business Strategies Group Ltd. Profile of Business Media China August 2007 Key products and markets3 BMC’s key businesses are exhibitions, business publishing and outdoor advertising. The publishing unit is less vital than exhibitions and advertising. The publishing unit is generally used to support and promote the exhibitions business. The company has noted that the outdoor advertising is it fastest growing business, but the advertising margins tend to be lower than its original core business, exhibitions. Exhibitions CHINA MINING is hosted by China’s Ministry of Land and Resources and it is co-organised by BMC and The Balloch Group. The 2006 edition of the show was held in Beijing in November and recorded over 2,500 attendees and 200 exhibitors. BMC also organises PPI China (The International Fair for the Food and Drink Processing and Packaging Industry) and FDC China (The International Fair for Food and Drink). These two exhibitions take place concurrently in Guangzhou. The fourth edition of these shows took place in May of this year featuring over 320 exhibitors and 9,200 visitors according to the company. BMC is forecasting the number of exhibitors to reach 500 in 2008. The company also stated that a conference component will be added to the event. In Shanghai in May, BMC hosted the 12th edition of its China Beauty Expo. The company claims that this year’s show featured 1,105 companies covering 57,500 sqm of the Shanghai New International Expo Centre. BMC reported that attendance reached 193,000 this year. The event is supported and promoted through two trade titles, Estetica China and ICN China, both of which BMC publishes under licence in China. China SMT Forum is a BMC event focused on surface mount technologies and microelectronic packaging technologies.