Shenzhen Topway to List within May

China Business News, 5/05/08

Shenzhen cable TV operator Topway Video Communication (002238.SZ) will list on the Shenzhen Stock Exchange within this month.

In 2005, 2006, and 2007, Topway's operating revenues were RMB 410 mln, RMB 620 mln, and RMB 650 mln, respectively, corresponding to profits of RMB 66.1 mln, RMB 67.3 mln, and RMB 70 mln.

Topway plans to use the capital raised by listing in seven main areas: transmission technology upgrades for cable networks, the construction of interactive TV systems, content integration and operations construction, the construction of cable network support platforms, technology upgrades for Shenzhen data network bandwidth, and DTV transition and upgrades for the Luohu and Nanshan districts. The company plans to invest RMB 100 mln in related projects, and to expand its Shenzhen interactive TV user base from the current 20,000 users to 140,000 users within three years. With expected average revenue per user of RMB 600 per annum, the interactive systems will provide an additional RMB 84 mln in yearly operating revenues for Topway, or RMB 21.6 mln post-tax.

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