tag:blogger.com,1999:blog-66130502263904701482011-04-21T17:02:04.028-07:00Kevin Zhonghttp://www.blogger.com/profile/08129128393428310867noreply@blogger.comBlogger21100tag:blogger.com,1999:blog-6613050226390470148.post-81191602695941353772007-08-13T07:24:00.000-07:002007-08-13T07:27:00.023-07:00<span style="font-size:85%;">Quick update from bod meeting of towona:<br /><br />Archievement:<br />- moving from resource aquisition stage to revenue generation stage<br />- mkt leadship: 33 cities, 37k buses signed, 23k buses installed, 32k lcd installed.<br />- 1H rev: $11m, loss: 4.7m<br />- 07 projection: $38m, breakeven<br />- 10 cities archived operational cashflow positive<br />- strong local ad rev: over 5000 local advertisers, contract value raging from 1000 yuan to 100k. Selling price is 150-500 yuan per minute per day in a city.<br /><br />Competition:<br /><br />Huashi:<br />-less buses, less than 20k signed, 10k installed.<br />-but has leading position in beijing, zhenzhou, shenzhen and chengdu.<br />-high cost to secure resources, 9m rental fee for beijing<br />-more like ad agency role<br /><br />Bus online:<br />- raised 30m recently<br />- 200-600 buses in each city<br />- extreme low pricing policy which harms the other two players<br /><br />Towona Strategy and Challenges:<br />- secure resources in each city<br />- more cities to cashflow breakeven<br />- stable rev growth of local ads<br />- attract national brands<br />- kickoff ipo in 2008 (lead investor thinks there must be at least one on-bus media going public next year, towona has good opportunity to beat the others)<br /><br />Also, board required the management to hire a financial manager to optimise the financial system and management by oct.<br /><br /></span><p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">- Revenue</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">Q1 rev: 3.9m 33% of target loss: 3.4m</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">Q2 rev: 7.8m 43% of target loss: 1.3m</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US"> </span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">- Opex </span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">Q1+Q2 opex: 15m (Rental: 5.2m, HR: 3.2m, sales: 5m, D&A: 1.2m)</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">06 opex: 9m (rental: 4m, HR: 2.7m, sales: 2m, D&A: 0.3m)</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US"> </span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">- Capex</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">Q1+Q2 capex: 5m</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">06 capex: 10m</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US"> </span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">- Analysis</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">Total fund raised: 45m (10m in 2006 and 35m in 2007)</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">Total loss: 10m</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">Capex: 15m</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">Cash: 11m</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">AR/other receivables: 9m</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US"> </span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">- Clients</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US">In first half of 07, 63% advertising revenue is coming from local advertisers, of which 23% is from Xiamen alone, Large national brands accounts for 37%. Some of the large contracts are Haier (1.3m), Sanlu(800k), Hyudai(500k), Wuliangye (500k), Maotai(500k). Details will be provided as soon as obtained from the company.</span></span></p> <p style="font-family: arial;" class="MsoNormal"><span style="font-size:85%;color:navy;"><span style="" lang="EN-US"> </span></span></p><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/6613050226390470148-8119160269594135377?l=kzhong.blogspot.com' alt='' /></div>Kevin Zhonghttp://www.blogger.com/profile/08129128393428310867noreply@blogger.com0tag:blogger.com,1999:blog-6613050226390470148.post-71795338765181154692007-08-05T04:11:00.000-07:002007-08-05T04:17:39.249-07:00<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://img.zhuaxia.com/readpic.php?url=http://s2.album.sina.com.cn/pic_3/47233d0f020015bd"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 320px;" src="http://img.zhuaxia.com/readpic.php?url=http://s2.album.sina.com.cn/pic_3/47233d0f020015bd" alt="" border="0" /></a><br />Heard about blog about 3 years ago. Now it's time to catch up. Show a picture here. It's a photo taken by wang shi. wish could do the same some day like he did. Here is a link to his <a href="http://blog.sina.com.cn/u/47233d0f01000ala">blog</a><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/6613050226390470148-7179533876518115469?l=kzhong.blogspot.com' alt='' /></div>Kevin Zhonghttp://www.blogger.com/profile/08129128393428310867noreply@blogger.com0