VisionChina Media Inc. (Nasdaq: VISN), one of China’s largest mass transportation mobile television advertising networks, today announced that it has signed an exclusive contract with Shanghai Shentong Metro Asset Operation and Management Corporation, the asset management arm of Shanghai Metro, to act as the exclusive advertising agent for Shanghai Metro Line 6. With the addition of this line, VisionChina Media now has the exclusive right to provide planning, production, sales and placement services to Shanghai Metro’s digital screens installed on the platforms of three of Shanghai’s eleven subway lines. This new contract with Shanghai Metro enables VisionChina Media to expand its presence in Shanghai, where, according to the Shanghai municipal government, over 12 million people use public transportation daily.
“We are very pleased with our new contract that deepens our penetration into the Shanghai subway system,” said Limin Li, chairman and chief executive officer of VisionChina Media. “The addition of this third line builds on our break-through contracts with Shanghai Metro Lines 8 and 9 signed this past July, and increases our coverage to more than 25% of Shanghai’s subway lines, fortifying our position as one of the strongest players in Shanghai’s out-of-home advertising industry.” He continued, “With this strategically important contract, we remain on track with our expansion and penetration plans for 2008 and are well positioned for solid growth going forward.”
At the end of 2007, Shanghai had a population of 13.79 million with a disposable income per capita of RMB23,623, approximately US$3,236, and the highest in China. The city is also ranked first in the nation in terms of GDP, boasting a GDP of RMB1.2 trillion, approximately US$165 billion, in
Shanghai Metro Line 6 runs through 28 stations in the Pudong District of Shanghai. Pudong is an economic development zone, and often described as
the new financial and commercial hub of China.
VisionChina operates an out-of-home advertising network on mass transportation systems, including buses and subways that reach approximately 26 million viewers each day in China, according to CTR Market Research. As of June 30, 2008, VisionChina’s advertising network included over 60,160 mobile digital displays on mass transportation systems in 17 of China’s most affluent cities, including all four of China’s Tier I cities, Beijing, Shanghai, Guangzhou and Shenzhen. VisionChina has the unique ability to deliver real-time, location-specific broadcasting, including news, stock quotes, weather and traffic reports and other entertainment programming.