China MediaExpress Holdings, Inc. (fka CCME)

[GorillaGorilla]

2009's Q3 in what was to become the underlying business were announced in a PR. The SEC doc of the SPAC was irrelevant in terms of numbers. The PR went a lot like this...

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a4_voQxV4PRU

China MediaExpress Holdings, Inc. Announces 2009 Third Quarter Financial
Results

Third Quarter Net Income Rose 83% on 65% Increase on Net Revenues

Business Wire

FUJIAN, China -- November 16, 2009

China MediaExpress Holdings, Inc. (NYSE Amex: TMI; TMI/U; TMI/WS), China’s
largest television advertising operator on inter-city express buses, today
announced the financial results of the Hong Kong Mandefu Holdings Limited
(“CME” or “Company”) for the three and nine months period ended September 30,
2009.

Financial Highlights – Third Quarter 2009 vs. Third Quarter 2008

* Net revenues increased 65% to $26.1 million in the 2009 period compared to
$15.8 million;
* Gross margin for the 2009 period was 67% of net revenues;
* Operating income increased 83% to $15.5 million in 2009 compared to $8.5
million; and,
* Net income increased 83% to $11.7 million compared to $6.4 million.

Financial Highlights – Nine Months 2009 vs. Nine Months 2008

* Net revenues increased 38% to $64.0 million in the 2009 period compared to
$46.2 million;
* Gross margin for the 2009 period was 64% of net revenues;
* Operating income increased 45% to $37.2 million in 2009 compared to $25.6
million;
* Net income increased 43% to $27.4 million compared to $19.2 million; and,
* As of September 30, 2009, the Company had $40.9 million in cash and cash
equivalents with no debt.

Zheng Cheng, CME’s Founder and CEO, commented, “2009 has been a year of
transformation as CME became a public company. We have taken several steps to
further strengthen our position as the market leader in the express bus
advertising industry in China and to take advantage of new opportunities
ahead. We are well positioned to capitalize in the rapid increase of the
advertising spending, as China is the second largest advertising market in
Asia, and one of the largest and fastest growing markets in the world. We have
placed our Company in several large Chinese markets, including the five
municipalities of Beijing, Shanghai, Guangzhou, Tianjin and Chongqing. Third
quarter and nine month results are an indication that our efforts have been
successful. Our net revenue and net income for the first nine months of 2009
have already exceeded net revenues and net income for full year 2008.”

Mr. Cheng added, “We continue to expand our operations, both in the areas
where we have a strong presence and in new areas as well. As of today, our
network includes 46 bus operator partners, up from 40 in mid-September, with
whom we have entered agreements for terms ranging from five to eight years.
The total number of buses equipped with our television systems is now over
20,000, increasing approximately by 2,000 buses since mid-September. In the
fourth quarter, we plan to further expand our geographic coverage through the
signing of several new agreements with the new bus operators. Our network now
covers the municipality of Guangzhou, China’s third largest city, after
Beijing and Shanghai and also the province of Shanxi.”

Mr. Cheng continued, “Our platform has attracted numerous well-known
international and national brands to our advertising network. More than 500
advertisers have purchased advertising time on our network either through
advertising agents or directly from us. Our clientele includes local brand
names as well as those well-known international and national brands such as
Coca Cola, Pepsi, Siemens, Hitachi, China Telecom, China Mobile, China Post,
Toyota, Bank of China and China Pacific Life Insurance.

“In addition to accelerating our top line growth, we are also working to
improve of our profit margins. In that regard, we have increased our sales
force to 65 people to focus on direct advertising clients, where we enjoy a
better margin compared to clients signed through advertising agencies. At the
end of 2008, direct clients accounted for only 2% of our net revenues. For the
first nine months of 2009 direct clients represented 16% of our net revenues
from those advertising timeslot. We expect this percentage to reach 20% by
year-end and approximately 40% by the end of 2010.

“In the third quarter, we also started to broadcast the embedded
advertisements which are displayed during the broadcasting of the content and
this definitely brings a new source of revenue to our current platform.”

Jacky Lam, CME’s Chief Financial Officer stated, “CME generated $29.9 million
of cash from operating activities in the first nine months of 2009. Our
balance sheet remains very strong and as of September 30, 2009, we had $40.9
million of cash with no debt.”

Mr. Cheng concluded, “Historically, our fourth quarter is seasonally our best
quarter. It appears that the 2009 fourth quarter will be no exception.”

Institutional Investor Meetings

The management CME will hold meetings with current and prospective
institutional investors during the first week of December. Accredited
investors may request a meeting with management by contacting: Lena Cati of
The Equity Group at 212-836-9611 begin_of_the_skype_highlighting              212-836-9611      end_of_the_skype_highlighting begin_of_the_skype_highlighting              212-836-9611      end_of_the_skype_highlighting begin_of_the_skype_highlighting 212-836-9611 end_of_the_skype_highlighting or [e-mail].

About CME

CME, through contractual arrangements with Fujian Fenzhong, an entity majority
owned by CME’S former majority shareholder, operates the largest television
advertising network on inter-city express buses in China. While CME has no
direct equity ownership in Fujian Fenzhong, through the contractual agreements
CME receives the economic benefits of Fujian Fenzhong’s operations. Fujian
Fenzhong generates revenue by selling advertisements on its network of
television displays installed on over 20,000 express buses originating in
fourteen of China’s most prosperous regions, including the five municipalities
of Beijing, Shanghai, Guangzhou, Tianjin and Chongqing and nine economically
prosperous provinces, namely Guangdong, Jiangsu, Fujian, Sichuan, Hebei,
Anhui, Hubei, Shandong and Shanxi which generate more than half of China’s
GDP.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933 (the “Securities Act”), as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). Forward-looking statements include, but are not limited to
statements regarding expectations, hopes, beliefs, intentions or strategies
regarding the future. In addition, any statements that refer to projections,
forecasts or other characterizations of future events or circumstances,
including any underlying assumptions, are forward-looking statements. The
words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,”
“project,” “should,” “would” and similar expressions may identify
forward-looking statements, but the absence of these words does not mean that
a statement is not forward-looking. Forward-looking statements in this report
may include, for example, statements about:

* The Company’s goals and strategies;
* The Company’s future prospects and market acceptance of its advertising
network;
* The Company’s future business development, financial condition and results
of operations;
* Projected changes in revenues, costs, expense items, profits, earnings,
and other estimated financial information;
* The Company’s ability to manage the growth of its existing advertising
network on inter-city express buses and expansion to prospective
advertising network on high speed railways;
* Trends and competition in the out-of-home advertising media market in
China;
* Changes in general economic and business conditions in China; and
* Chinese laws, regulation and policies, including those applicable to the
advertising industry.


HONG KONG MANDEFU HOLDING LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME

(Amounts in thousands of US dollars, except for number of shares and per share
data)

For the three months ended For the nine months ended
September 30, September 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)


Sales, net of
business tax and $ 26,122 $ 15,783 $ 63,983 $ 46,233
related surcharges:
Cost of sales: (8,630 ) (6,459 ) (22,992 ) (18,359 )
Gross profit 17,492 9,324 40,991 27,874

Operating expenses:
Selling expenses (1,371 ) (313 ) (1,897 ) (823 )
General and
administrative
expenses (588 ) (524 ) (1,941 ) (1,452 )
Total operating (1,959 ) (837 ) (3,838 ) (2,275 )
expenses

Operating income 15,533 8,487 37,153 25,599
Interest income 27 38 70 77
Income before 15,560 8,525 37,223 25,676
income taxes
Income tax expenses (3,896 ) (2,162 ) (9,823 ) (6,478 )
Net income $ 11,664 $ 6,363 $ 27,400 $ 19,198

Foreign currency
translation $ 11 $ 539 $ (36 ) $ 977
adjustment

Comprehensive $ 11,675 $ 6,902 $ 27,364 $ 20,175
income

Earnings per share
Basic and diluted $ 1,166.4 $ 636.3 $ 2,740.0 $ 1,919.8

Weighted average
number of ordinary
shares outstanding:
Basic and diluted 10,000 10,000 10,000 10,000


HONG KONG MANDEFU HOLDING LIMITED

CONSOLIDATED BALANCE SHEET

(Amounts in thousands of US dollars)

September 30, Dec. 31, 2008
2009
(Unaudited)
ASSETS

Current assets:
Cash and cash equivalents $ 40,855 $ 29,997
Accounts receivable, net 11,293 6,065
Prepayment and other current assets 26 59
Total current assets 52,174 36,121

Non-current assets:
Property, plant and equipment, net 10,864 11,417
Deferred tax assets 1,910 1,578
Total non-current assets 12,774 12,995

Total assets $ 64,948 $ 49,116

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
Accounts payable $ 2,030 $ 1,565
Accrued expenses and other current liabilities 3,045 1,301
Income tax payable 4,567 3,072
Amount due to a related party 1,508 798
Accrued liabilities for the purchase of 1,455 1,072
property, plant and equipment

Total current liabilities 12,605 7,808

Non-current liabilities:
Accrued severance payment 393 307
Deferred concession fees 7,145 6,005
Total non-current liabilities 7,538 6,312

Total liabilities 20,143 14,120

Commitments and contingencies

Shareholders’ equity:
Ordinary shares $0.13 par value, 10,000 shares
authorized and 10,000 shares issued and 1 1
outstanding
Statutory reserves 4,314 4,314
Accumulated other comprehensive income 1,348 1,384
Retained earnings 39,142 29,297
Total shareholders’ equity 44,805 34,996

Total liabilities and shareholders’ equity $ 64,948 $ 49,116


HONG KONG MANDEFU HOLDING LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands of US dollars)

For the nine months ended September 30,
2009 2008
(unaudited) (unaudited)

CASH FLOWS FROM (TO) OPERATING
ACTIVITIES
Net income $ 27,400 $ 19,198
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
Depreciation of property, plant and 2,351 2,324
equipment
Deferred tax benefits (332 ) (646 )

Changes in operating assets and
liabilities:
(Increase) in accounts receivable (5,228 ) (3,197 )
Decrease /(increase) in prepayments 33 (45 )
and other current assets
Increase in accounts payable 465 797
Increase in accrued expenses and other 1,744 436
liabilities
Increase in deferred concession fees 1,140 2,266
(Decrease)/increase in accrued 86 318
severance payment
Increase in income tax payable 1,495 1,035
(Decrease)/increase in amounts due to 710 (2,396 )
related parties

Net cash provided by operating 29,864 20,090
activities

CASH FLOWS (TO) INVESTING ACTIVITIES
Acquisition of property, plant and (1,415 ) (4,591 )
equipment, net of related payables

Net cash used in investing activities (1,415 ) (4,591 )


CASH FLOWS (TO) FINANCING ACTIVITIES
Dividends paid (17,555 ) -

Net cash (used in) financing (17,555 ) -
activities

Net increase in cash and cash 10,894 15,499
equivalents

Effect of foreign currency translation (36 ) 977
adjustment on cash

Cash and cash equivalents at the 29,997 6,364
beginning of the period

Cash and cash equivalents at the end $ 40,855 $ 22,840
of the period

Contact:

China MediaExpress
Jacky Lam, Chief Financial Officer
[e-mail]
or
Investor Relations:
The Equity Group Inc.
Lena Cati, 212-836-9611 begin_of_the_skype_highlighting 212-836-9611 end_of_the_skype_highlighting
[e-mail]
Linda Latman, 212-836-9609 begin_of_the_skype_highlighting 212-836-9609 end_of_the_skype_highlighting
[e-mail]