According to a Bursa filing, Hong Kong-based One Media Group’s indirect wholly-owned subsidiary, Media2U Company, is disposing of its 100% equity interests in Beijing OMG Advertising and Beijing TRT operations magazines, to a third party, who is understood to be an employee of Beijing OMG Advertising.
Both Beijing OMG Advertising and Beijing TRT operate magazines in mainland China. One Media is a unit under Media Chinese International, which was formed following the merger of Ming Pao Enterprise Corporation, Sin Chew Media Corporation and Nanyang Press Holdings. Media Chinese International has a 73.01% stake of the entire issued share capital of One Media.
Upon completion of the disposal, the two Chinese companies will cease to be indirect wholly-owned subsidiaries of One Media. The filing added that the disposal will streamline One Media’s corporate structure and is also in line with its revised business strategy in the mainland China market.
Media Chinese International generated US$63.5 million in revenue for the fourth quarter ended 31 March 2018, an increase from US$62.4 million during the same period last year. In Malaysia and other Southeast Asian countries, the group saw a revenue of US$38.3 million for Q4 18, while its Greater China operations garnered a revenue of US$11.4 million during the same period. Revenue from the publishing and printing segment increased by 3.1% from US$51.96 million to US$53.6 million, while revenue from the travel segment fell 4.5% to US$9.96 million from US$10.42 million during the same period last year.
The group operates publishing and printing services in Southeast Asia, including Malaysia, Greater China and North America.
Its publishing and printing segments are engaged in the publication, printing and distribution of newspapers, magazines, books and digital contents primarily in the Chinese language. The segments derive revenue mainly from the provision of advertising services and sales of newspapers and magazines. Its travel and travel-related services segment, including Charming Holidays, derives revenue from the sales of travel packages and provision of tour services.
In its financial statement, the group said that it expects the operating environment for its businesses, both publishing and travel, to remain challenging amid weak consumer sentiment and rising costs of doing business. This is also at a point where new technologies are reshaping the media industry.
“Despite the improvement in the general economy of the countries we operate in, such improvement has not benefited our businesses as the sectors in which our advertisers operate in remain subdued. Furthermore, newsprint prices are escalating due to a supply shortage and this will hit the group with more challenges in the year ahead,” the statement said.
Nonetheless, it will continue its efforts in converging its print and digital businesses and intensify its cost-cutting efforts, particularly in streamlining its printing process in Malaysia.
Media Chinese International added it is committed to further developing its digital media business in order to ensure long term sustainable competitiveness, while continuing to strengthen its core publishing and travel businesses.