updated 11/15/2010 6:16:19 PM ET 2010-11-15T23:16:19

BEIJING, Nov. 15, 2010 (GLOBE NEWSWIRE) -- China Market Media Holdings, Inc. ("China Market Media" or the "Company") (OTCBB:CMKM), an integrated Chinese multimedia company engaged in publishing sales and marketing magazines and publications, providing sales and marketing consulting services and online sales of various consumer products, today announced its financial results for the third fiscal quarter ended September 30, 2010.

Third Quarter Financial Highlights:

  • Revenues: Our revenues were approximately $9.1 million for the third quarter of 2010, an increase of 32.2% from the same quarter of last year.
  • Gross Margin: Gross margin was 32.6% for the third quarter of 2010, as compared with 30.2% for the same quarter of last year.
  • Operating Profit: Operating profit was approximately $1.46 million for the third quarter of 2010, an increase of approximately 95.5% from approximately $0.74 million of the same period last year.
  • Net Income attributable to China Marketing Media Holdings, Inc.: Net income was approximately $1.40 million for the third quarter of 2010, an increase of 89.6% from the same period of last year.
  • Fully diluted earnings per share was $0.05 for the third quarter of 2010

Nine Months 2010 Financial Highlights:

  • Sales increased from $16.8 million to $26,7 million, a 59.0% improvement from the same quarter of last year;
  • Advertising revenue increased almost 112% in the first nine months of 2010 as compared with the same period last year, while online consumer sales and consulting revenue grew 70% and 15.8%, respectively;
  • Net income after tax for the first nine months of 2010 was $3.5 million or EPS of $0.12, as compared with $1 million or EPS of $0.04 for the first nine months of 2009.

Results of Operations

Revenues during the three-month period ended September 30, 2010 were $9.1 million, which is $2.2 million or 32.2% more than the same period in 2009, when the Company had revenues of $6.9 million. The increase in revenues for the three months ended September 30, 2010 is mainly due to increases in selling consumer products online and in advertising sales. The increase in revenue of selling consumer products was attributable to the sales by more well-established sales channels and a variety of sales promotions to attract more consumers. In addition, following economic recovery in PRC in 2009, many enterprises increased their marketing and advertising expenses in 2010, which resulted in the increase of our revenue in an amount of approximately $0.79 million from advertising sales.

Gross profit in the third quarter of 2010 increased 43.1% to $2.98 million, from $2.08 million in the prior year's same period. Gross margin in the third quarter of 2010 was 32.6%, as compared with 30.2% a year ago.

Income tax expense was $75 and $5,841 during the three months ended September 30, 2010 and 2009, respectively or a decrease of 98.7%.

Net income in the third quarter of 2010 increased 89.6% to $1.4 million, from approximately $0.74 million, in the third quarter of 2009. EPS increased to $0.05 per diluted share, up 67% from $0.03 per diluted share in the third quarter of 2009.

As of September 30, 2010, we had cash and cash equivalents of approximately $5.5 million and working capital of $8.9 million.

Net cash provided by operating activities was approximately $1.12 million during the nine months ended September 30, 2010, which is an increase of approximately $1.1 million from approximately $0.02 million net cash provided by operating activities for the same period of 2009. Such increase of net cash provided by operating activities was primarily attributable to an increase in income from continuing operations.

Mr. Yingsheng Li, President and CEO of China Marketing Media, commented, "We are excited about reporting another strong quarter. Our business initiatives are proving to be successful, and we anticipate this trend to continue. This increase in revenue of selling consumer products was attributable to the sales by more well-established sales channels and a variety of sales promotions to attract more consumers which resulted in the increase of our revenue in an amount of approximately $3.46 million from advertising sales."

About China Marketing Media Holdings, Inc.

China Marketing Media Holdings, through its indirect Chinese subsidiaries, is engaged in the business of selling magazines and advertising space in our magazines, providing sales and marketing consulting services and online sales of various products. All of its operations, assets, personnel, officers and directors are located in China. Currently, China Marketing Media Holdings publishes China Marketing (Xiao Shou Yu Shi Chang) magazine in China. It publishes three issues of China Marketing per month, including a sales edition, case edition and channel edition. From June 2003 through December 2006, it also published one issue of China Business & Trade magazine per month, which was the training edition. In June 2009, it began to publish eight special issues of China Marketing, which includes a cosmetic edition, food edition, gift edition, tobacco edition, finance edition, sporting goods edition, an edition for agricultural resources and an edition for entrepreneurs in Henan. The special editions are published from time to time based upon market conditions.

In July 2008, the Company started its new business of online marketing and sales of various consumer products by entering into various cooperation arrangements with Chinese banks.

In June 2010, the company launched a new business platform called "Easy Buy" that connects business, banks and customers on a single platform. With the innovative Invisible Printing Optical Identification Technology (IP-OIT), this sales and marketing platform helps the advertising clients to further promote their products and enhance their sales distribution channel. At the same time, we will be able to market and sell our products by sending the special catalog to the gold and platinum card holders through various banks, thus bringing in more advertising revenues for the company.

Forward-Looking Statements

This press release contains certain statements that may include "forward looking statements". All statements other than statements of historical fact included herein are "forward-looking statements" including statements regarding: product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and any other statements of non-historical information. These forward looking statements are often identified by the use of forward -looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Such risk factors include, among others, viability and effectiveness of the Company's sales approach and overall marketing strategies, competitive responses, the Company's ability to develop new magazines and related new media, regulatory environment for media companies and media distribution and consumption in the PRC. More information about some of these risks and uncertainties may be found in the reports filed with the Securities and Exchange Commission by the Company. You should not place undue reliance on these forward -looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward -looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website ( http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward -looking statements. 

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