FUJIAN, China--(BUSINESS WIRE)--China MediaExpress Holdings, Inc. (NASDAQ GS: CCME) (“CME” or “Company”), China’s largest television advertising operator on inter-city and airport express buses, today announced that its Board of Directors has approved the implementation of a dividend policy on its common and preferred shares. Pursuant to the policy adopted by the Board, commencing with the six month period ending December 31, 2010, a semi-annual cash dividend of 5% to 10% of CME’s net profit will be paid upon receipt of the related financial statements by the Board. The Company’s Board of Directors will decide the exact payable amount at the corresponding board meetings in light of CME’s cash flows, expected liquidity needs and future corporate strategies.
CME’s Founder & CEO, Zheng Cheng, commented, “Consistent with our commitment to continuously maximize value to our investors, our Board of Directors agreed that with the Company’s exceptional balance sheet and solid free cash flow generation, it is time to recognize the ongoing support of our shareholders. With this payout ratio, we will continue to have the financial flexibility to invest in our high-return, high-growth projects.”
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 and airport 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 26,400 express buses originating in eighteen of China’s most prosperous regions, including the four municipalities of Beijing, Shanghai, Tianjin and Chongqing and fourteen economically prosperous regions, namely Guangdong, Jiangsu, Jiangxi, Fujian, Sichuan, Hebei, Anhui, Hubei, Shandong, Shanxi, Inner Mongolia, Zhejiang, Hunan and Henan.
CME is included in the Russell Global Index. For more information visit: www.ccme.tv.