Asia Business Media: November 2012

Friday, November 23, 2012

Advanstar to buy U.S.-based fashion show organiser

News this week: U.S.-based B2B media company Advanstar Global LLC announced its agreement to buy fashion trade show organiser ENK International for an undisclosed fee. ENK and Advanstar Communications will continue to operate as separate business entities upon completion of the acquisition.

ENK organises several leading fashion trade shows worldwide which take place in New York, Las Vegas, and across Europe and Asia. These include the New York-based Fashion Coterie, Intermezzo and Accessorie Circuit, as well as ENK Mode Shanghai and ENK’s own pavilion at the China International Clothing & Accessories Fair (CHIC) in Beijing.

Joe Loggia, CEO of Advanstar Global, said, “Having ENK, MAGIC and PROJECT within the same family of companies provides the fashion industry a choice of intimate and customised environments that satisfy their market needs. Moreover, Advanstar Global has made significant investments in new technology that will enable our company to further drive value, service and solutions across the entire fashion marketplace.”

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UBM partnership to launch concrete show in China

News this week: UBM is set to launch Concrete Show China next year in partnership with the China Chamber of Commerce for Metals, Mineral and Chemicals Importers and Exporters (CCCMC). The organisers announce the inaugural edition will take place from 26^th to 28^th June 2013 at the Shanghai World Expo Exhibition & Convention Centre.

The event will showcase a range of concrete related products and services including outdoor machinery displays and practical product information. Concrete Show China is the latest addition to the Concrete Show portfolio which includes Concrete Show South America (Sao Paulo), Concrete Show South East Asia (Indonesia) and Concrete Show India (Mumbai).

Margaret Connolly, managing director of UBM China (Shanghai), was quoted, “Given the growing demand for more sophisticated and innovative products and technology, there is much anticipation for further advancement in the next decade. In addition to UBM’s concrete shows in Brazil, India and Indonesia, we are delighted to partner with CCCMC to launch Concrete Show China and provide a world class platform for industry professionals to learn, inspire and collaborate.”

CCID Consulting Q3 revenue up, profit down

News this week: Hong Kong-listed CCID Consulting, announced its results for the nine months ended 30^th September 2012. Revenues were US$15 million – an increase of 9.7% compared with the first nine months of 2011. However, net profit in the period was down 18% to US$1.2 million.

The Beijing-based company attributed the growth of its revenue to the continuous efforts to promote business reform and extensive promotions in the management consultancy market.

CCID also reported results for the quarter ended 30^th September. Revenues were US$4.7 million, an increase of 7.5% over the same quarter last year. The company posted a net loss of US$89,000, compared with a profit of US$18,000 last year.

CyberMedia posts impressive profit growth

News this week: Indian specialty publisher, CyberMedia, has announced its results for the quarter ended 30^th September 2012. Revenues were up 8.3% year-on-year to US$3.8 million. The company posted a net profit of US$118,000, an impressive jump from last year’s US$25,000.

CyberMedia’s media business generated US$2.5 million or 64% of total revenues, up 12% from the same quarter in 2011. The media services business generated revenues of US$1.4 million, flat against the same period last year.

For the six months ended 30^th September, revenues were US$7.4 million, an increase of 6.6% over the same period last year. CyberMedia posted a profit of US$201,000, compared with US$60,000 in the first half of 2011. Dilute earnings per share in the period were Rs. 1.01 (US$0.019).

Alibaba mulls stake in Sina Weibo

News this week: According to various media reports, China’s largest e-commerce company, Alibaba Group, is planning to buy a stake in NASDAQ-listed Sina’s Weibo, one of China’s most popular microblogging services.

Weibo, China’s equivalent of Twitter, is reportedly valued at around US$2 billion to US$3 billion, where Alibaba is looking to buy a 15%-20% stake. According to financial services provider Credit Suisse, the valuation is lower than its internal valuation of US$4.4 billion, but higher than the implied valuation of US$1.8 billion based on Sina’s closing share price on 16^th November. In the first nine months of 2012, Weibo generated US$20 million in advertising revenue.

Alibaba and Sina both declined to comment on the deal.

Separately, Yahoo‘s filing to the U.S. Securities and Exchange Commission earlier this month reported Alibaba Group’s financial figures for the first nine months of the year. Alibaba Groups’s revenues were up 74% to US$2.9 billion, while profit in the period was up more than 300% to US$730 million. Alibaba’s net attributable income in the quarter from April-June was US$273 million, more than double year-on-year, while revenues rose 71% reaching US$1.1 billion.

UBM Asia acquires majority share in Malaysian organiser

News this week: London-listed UBM plc announced its acquisition of a 65% equity share in Eco Exhibitions Sdn Bhd – owner of sustainable building, design and construction trade fair Greenbuild Asia. Financial terms of the deal were not disclosed. Greenbuild Asia’s founder and owner, Andrew Siow, will remain as a partner and managing director of the company.

Reportedly the largest event of its kind in Southeast Asia, the last edition of Greenbuild Asia was held from 14^th to 16^th February 2012 at the Kuala Lumpur Convention Centre (KLCC), which received 12,000 trade buyers and 98 exhibiting companies. In 2013, the show will move to the Putra World Trade Centre due to space constraint and will run from 17^th to 19^th September.

This latest acquisition is part of UBM’s ASEAN expansions in Southeast Asia. In 2011, UBM Asia also acquired AMB Exhibitions from Andrew Siow. AMB’s portfolio of trade shows includes the Kuala Lumpur-based AsiaWater and ASEAN M&E Expo. UBM Asia reportedly became the largest exhibition organiser in Malaysia through its acquisition of the Malaysian International Furniture Fair (MIFF) in February this year.

Friday, November 16, 2012

Labelexpo India sees record visitor numbers

News this week: Labelexpo India, a biennial event organised London-listed Tarsus, posted a record 8,049 visitors on the show’s 10 year anniversary. Labelexpo India 2012 was held at the Pragati Maidan in New Delhi from 29^th October to 1^st November.

Visitor numbers were up 33% from the 2010 edition, while more than 200 local and international exhibitors, including 49 first time participants, showcased their products at the event. According to Tarsus, 53% of exhibitors have already confirmed their return at the 2014 edition with many also committing to bigger stalls.

Jade Grace, event director, Labelexpo India commented, “With label and package printing converters spending wisely on top quality machines, materials and ancillaries, the future of India’s label industry is undeniably strong with so many opportunities to benefit from. With new prospects emerging for label and packaging printers as the retail sector opens up through FDI and a growing interest in digital technologies, we look forward to returning in 2014 to see how much more this exciting market place has developed and grown.”

Alibaba.com offers e-commerce training in Bangkok

News this week: Alibaba Group’s B2B e-commerce subsidiary, Alibaba.com, has launched an offline e-commerce education programme in partnership with web and graphic design training centre, Web Courses Bangkok, to educate Thai SMEs on how to improve their export businesses on the platform.

The course is offered for under US$80 and can be completed within a day. There are two main sections of the course where the first part focuses on theory, while the second part presents practical applications and offers feedback on the participants’ business profile.

Alibaba.com’s marketing manager, Rachel Wu, explained at a launch event earlier this month that only 5.8% of the three million exporting Thai SMEs conduct business via e-commerce – compared with 42% of exporting Chinese SMEs being active online. As of June this year, the company reports 249,000 registered users in Thailand, up 22% from the same period last year with approximately half of these being active members.

HC International posts impressive profit growth

News this week: Earlier this week, Hong Kong-listed HC International has released its results for the nine months ended 30^th September 2012. Revenues were US$61 million, an increase of 25% over the same period in 2011. Profit attributable to equity holders in the period was US$6.1 million, an impressive growth of 144% compared with the first nine months last year. The management attributed the growth in profit to the improvement of revenue and better control of the company’s costs and expenses. Diluted earnings per share in the nine-month period were RMB 0.0646 (US$0.0103).

The company’s largest business segment, online services, generated more than 74% of revenues (US$45 million) – up 45% over the first nine months in 2011. The seminars & other services segment generated about 16% of revenues (US$9.7 million) and increased 6.3% year-on-year. The remaining revenues were generated from the trade catalogues & yellow page directories business segment which recorded a year-on-year decrease of 31%.

Reed Exhibitions revenue up 15%

News this week: Media group, Reed Elsevier, reported its interim results for the first nine months ended 30^th September 2012. The group’s exhibitions organising arm, Reed Exhibitions, reported underlying revenue growth of 15% year-on-year, or 7% excluding biennial cycling. The company’s shows saw double digit growth in emerging markets outside the U.S. and Europe.

Reed Exhibitions reported the launch of 20 new shows in the first nine months of the year with a focus on high growth sectors and geographies including Brazil, Turkey and China. It expects growth rates in Europe will continue to be impacted by the uncertain economic environment.

Erik Engstrom, CEO of Reed Elsevier, commented, “In the first nine months of 2012 we have made good progress in systematically transforming our business, primarily through organic investment, supplemented by selective portfolio developments. The macroeconomic environment and its impact on our customers’ markets remain uncertain, but by focusing on the fundamentals of our business, we expect to continue to improve the quality of our earnings.”

Global Sources’ exhibition revenue jumped 159% in Q3

News this week: Yesterday, NASDAQ-listed Global Sources released its third quarter results ended 30^th September 2012. The company reported revenues of US$59 million, an increase of 26% compared with the same quarter in 2011. Net profit attributable to shareholders in the quarter was US$8.2 million, more than double the US$3.96 million recorded in the third quarter last year.

Online revenues were US$30 million this quarter, flat against Q3 last year. Exhibition revenues jumped 159% to US$23 million. The impressive growth in exhibitions were attribute to good performance of the two major shows held in the quarter, SZIC and China International Optoelectronic Expo. Print revenues continued to decline, dropping 34% to US$4.1 million in the quarter.

For the nine months ended 30^th September, the company’s revenues were US$165 million, a year-on-year 9.1% increase. Net profit attributable to the shareholders in the nine-month period was US$21 million, up 20% over the same period in 2011. Diluted net income per share was US$0.59 in the first nine months of the year.

79th UFI Congress breaks attendance record

News this week: UFI, the Global Association of the Exhibition Industry, recently concluded its annual 79^th Congress at the Abu Dhabi National Exhibition Centre (ADNEC) to a record 475 participants from 55 countries.

Themed “where is the growth coming from?”, key topics this year included growth via social media, business opportunities in the Middle East, the symbiotic partnership between technology and nature, and sustainable growth and corporate social responsibility.

UFI’s global membership currently consists of 612 member organisations from 85 countries – with 36 new member organisations added in the past year. According to UFI, China now accounts for 46% of the global increase in available indoor exhibition space, with 69% of this increase related to new venue construction.

Chen Xianjin, who assumed his new role as President of UFI at the event, was quoted saying, “Our association’s history reflects the development of the world exhibition industry and it is also the global economic development history in miniature. Today China represents 15% of UFI’s total membership and there are many stories about international exhibition companies coming to China and succeeding. It’s my intention to use the advantage of my origin from Asia to better connect Asian members with those from Europe and other continents.”

Friday, November 09, 2012

UBM Asia launches jewellery show in Taiwan

News this week: UBM Asia announced the launch of the inaugural Taiwan Jewellery & Gem Fair in cooperation with the Taiwan Jewelry Industry Association next year. The trade show will be hosted at Exhibition Hall 3 of the Taipei World Trade Center from 15^th to 18^th November 2013, and will also be supported by the Taipei Jeweler’s Association.

The Taipei Jeweler’s Association pointed out the lack of a B2B jewellery fair serving the Taiwan market, with UBM highlighting Taiwan’s close proximity to mainland China which draws a large number of Chinese tourists who are avid buyers of coral and jadeite jewellery.

Christopher Eve, senior vice president of UBM Asia, commented, “We received strong requests from within the Taiwan jewellery industry, as well as from international suppliers of jewellery products, for us to hold a professional jewellery event in Taiwan. We are delighted to be working closely with the Taiwan Jewelry Industry Association on this exciting new launch.”

Global Sources signs AWE contract extension

News this week: NASDAQ-listed Global Sources has announced a renewal of contracts to host the company’s China Sourcing Fairs (CSF) at the AsiaWorld-Expo (AWE) for 2015 and 2016. According to Global Sources, the total contract value amounted to US$21.4 million, where the CSF events attracted close to 14,000 exhibitor booths and more than 122,000 buyers in 2012.

The recently concluded fall edition of CSF featured more than 7,100 booths and 61,200 visitors from companies including Best Buy, Bosch, El Corte Inglés, Forever 21, Li & Fung, Logitech, LOUIS VUITTON, Marks & Spencer, Panasonic, Quiksilver, RadioShack, Samsung, Staples, ThreeSixty Sourcing, Toys”R”Us, Tesco and Woolworths.

Spenser Au, CEO of Global Sources, commented, “The China Sourcing Fairs series are held every April and October and, since 2006, AsiaWorld-Expo in Hong Kong has been the home for the shows. The renewal of our contracts with AsiaWorld-Expo Management will see us celebrating ten years of using Hong Kong’s AsiaWorld-Expo venue in 2015 and that is something we are very excited about.”

TCEB unveils plan to boost exhibition industry

News this week: The Thailand Convention & Exhibition Bureau (TCEB) has announced a three-year strategic roadmap for 2013-2015 with an aim for Thailand to become the centre of the exhibition industry of the ASEAN Economic Community (AEC). TCEB expects the Thai exhibition industry to grow by 30% to generate 30 billion Baht (US$975 million) by 2015.

The strategic roadmap highlights TCEB’s different roles over the three year period – starting as a Connector/Facilitator in the first year, and followed by the Marketer/Partner and Creator/Initiator roles. TCEB will help connect and support the private sector to grow their business network, followed by helping operators to promote their business overseas. Finally, TCEB will focus on attracting international organisers to hold mega events and exhibitions in Thailand.

In 2012, TCEB is targeting to generate more than 63 billion Baht (US$2.1 billion) for Thailand by attracting 792,000 participants through MICE events. In 2013, TCEB is allocated with an 870 million Baht (US$28 million) budget from the government to promote the MICE industry – of which over 100 million Baht (US$3.2 million) is set for the Exhibition Department to operate activities and organise mega events.

BOL Q3 revenue flat

News this week: Bangkok-based business information provider, Business Online (BOL), announced its financial results for the quarter ended 30^th September 2012 earlier this week. Revenues for the quarter were US$3.02 million, flat with the same quarter last year. Net income was US$476,000, which is a year-on-year 12% decrease.

More than half of BOL’s revenues, US$1.7 million, were generated from other services – up 24% over the same quarter in 2011. However, the company did not specify the details of these services. Revenues generated from online information services were US$1.1 million, a drop of 25% from the same period last year.

Baidu to acquire online video platform

News this week: The leading Chinese-language Internet search provider, Baidu, announced an agreement to purchase a majority stake in online video platform iQiyi.com. Details of the transaction were not disclosed.

The transaction is expected to be completed in the fourth quarter this year where iQiyi will be consolidated into Baidu’s financial statement. Upon completion, iQiyi will continue to operate as a separate brand with its existing management team.

iQiyi was launched in April 2010 as Qiyi until its name change in November 2011. It is reportedly the first online video platform in China to focus exclusively on fully licensed, high-definition and professionally-produced content.

Reed acquires auto aftermarket event in Shanghai

News this week: Reed Hongda Exhibitions (Henan) Co., Ltd., subsidiary of Reed Exhibitions Greater China, has signed an agreement with Shanghai Gehua Exhibition to acquire a 100% stake and all related assets of the annually-held Shanghai International Auto Decoration Supplies Sourcing Fair (CSAE). Financial terms of the deal were not disclosed.

CSAE was established in 2003 and last took place from 22^nd August to 24^th August at the Shanghai New International Expo Center (SNIEC). Exhibitor product categories include auto interiors/exteriors, customisation, car care, electronics, appliances, modified cars and parts. The recent edition featured more than 200 local and international exhibitors, with overseas visitor participants from the U.S., Middle East and Europe.

CSAE is the second addition to Reed Greater China’s portfolio of auto aftermarket events. Earlier in June this year, Reed formed a new joint venture, Reed Hongda, to run the Zhengzhou-based China International Automotive Aftermarket Expo & China Auto Accessories Trade Fair (CIAAF).

Friday, November 02, 2012

Messe Stuttgart forms JV in Nanjing

News this week: German-based Messe Stuttgart and the Nanjing International Exhibition Company (NIEC) have announced the formation of a new joint venture company – Nanjing Stuttgart Joint Exhibition Ltd. (Messe Nanjing). The inauguration ceremony of Messe Nanjing was held at the Nanjing International Expo Centre on 15^th October 2012.

Messe Nanjing will focus on hosting international trade shows in the B2B and B2C markets, while incorporating Messe Stuttgart’s existing business in Nanjing including AMB China and CMT China. The company will also aim to launch new events in the coming years.

Sun Kanglong, General Manager of Nanjing Hexi New Town State-Owned Assets Management Group Holdings Ltd., owner of the NIEC, explained that the launch of Messe Nanjing is expected to significantly accelerate the internationalisation of the exhibition and congress industry in Nanjing.

Tmall plans platform for international brands

News this week: The B2C e-commerce subsidiary of Alibaba Group, Tmall.com, is planning to build a global procurement system for foreign-made products to serve the Chinese consumer market and promote international brands in the next one to two years. Tmall will compile a database of international suppliers to help consumers make group purchases at lower prices, with early products to focus on milk powder and fine wine.

According to Tmall.com’s Vice President Ma Xuejun, the development of the system will involve a partnership with the International Brand Management Center of the China Association of International Trade, a trade research association under the Ministry of Commerce of China.

Tmall revealed in March this year that the company reached sales of more than US$16 billion (RMB100 billion) in 2011 and is forecast to total US$32 billion (RMB200 billion) this year.

Netsun Q3 profit jumps 33%

News this week: Shenzhen-listed online sourcing platform, Zhejiang Netsun, announced its financial results for the quarter ended 30^th September 2012. Revenues were US$5.4 million, down 5.6% over the same quarter in 2011. The company posted a profit attributable to company shareholders of US$1.4 million, a year-on-year jump of 33%.

The Hangzhou-based company also released its results for the nine months ended 30^th September. Revenues in the period were US$18 million, which is an increase of 3.7% compared with the first nine months of 2011. Profit attributable to company shareholders in the nine-month period was US$4.8 million, up by 13% from the same period last year. Earnings per share in the first nine months of the year were RMB 0.19 (US$0.0302).

Baidu records strong performance in Q3

News this week: Earlier this week, NASDAQ-listed Chinese-language Internet search provider, Baidu, announced its results for the quarter ended 30^th September 2012. Revenues grew to US$995 million, an increase of 50% compared with the same quarter in 2011. Net income attributable to the company was US$479 million, an impressive growth of 60% over the same period last year. Diluted earnings per share in the quarter were RMB 8.59 (US$1.37).

As of 30^th September, Baidu had about 390,000 active online marketing customers, a 28% growth from 304,000 recorded at the same time last year. Revenue per online marketing customer this quarter was US$2,546 – an increase of 17% compared with the third quarter of 2011.

The company’s management is forecasting revenues in the fourth quarter to be between US$979 million and US$1.01 billion, an increase of 38% to 42% over the fourth quarter of 2011. Revenues in the fourth quarter of 2011 were US$711 million. The company stated the forecast reflects its current and preliminary view, which is subject to change.

2,300 exhibitors at HKTDC’s lighting fair

News this week: The 14^th edition of the Hong Kong International Lighting Fair (Autumn Edition), organised by the Hong Kong Trade Development Council (HKTDC), has attracted close to 2,300 exhibitors from 37 countries and regions at the Hong Kong Convention and Exhibition Centre (HKCEC).

Reportedly the largest autumn event of its kind in Asia, the event was held from 27^th to 30^th October 2012 with new attractions and a new record number of exhibitors. Newly added speciality areas this year included advertising lighting and smart lighting. The HKTDC reported buyers from close to 60 countries and regions attended the event along with more than 70 organised buying missions.

The HKTDC also organised three other concurrent trade fairs that took place at the AsiaWorld-Expo (AWE): the Hong Kong International Building and Decoration Materials & Hardware Fair, Eco Expo Asia and Sports Source Asia.

Less buyers at Canton Fair suggests market slowdown

News this week: According to media reports, the recently concluded second session of the 112^th China Import and Export Fair (Canton Fair) recorded 7.7% less transactions year-on-year as a result of slower demand from Japan and the U.S. The session, focusing on toys and gifts, crafts, garden tools and supplies, and local specialties, received 147,732 overseas buyers – down 11.4% compared with the last session.

This was the second of three sessions which took place from 23^rd to 27^th October at the China Import and Export Fair Complex. According to the fair’s organisers, the China Foreign Trade Centre (CFTC), transactions from the U.S. in particular was down nearly 11% compared with the same session of the previous fair.

The first session of the Canton Fair was focused on clothing and received 93,529 visitors – down 11.4% compared with the corresponding session of the spring fair this year.

Asia Business Media