Shanghai Securities News, 1/23/09
Chinese digital cable TV operator Beijing Gehua CATV Network (600037.SH) has announced that it expects operating profit for the full year 2008 to decrease 14.85% year-on-year to RMB 301.78 mln, on operating revenues of RMB 1.36 bln. Gehua attributed the decline to the increase in costs involved with converting subscribers to digital cable TV. The company also announced that a preferential tax policy that allowed it to pay no tax for the five years from 2004-2008 has now ended, and that from 2009, it will be subject to a tax rate of 25%. Gehua went on to say that it expects net profits in Q1 2009 to decline over 30% year-on-year.