China Digital TV Subsidiary Reaches Capital Increase Agreement with Beijing Gehua
Dec 29, 2014
BEIJING, Dec. 29, 2014 /PRNewswire/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems and comprehensive services to China's expanding digital television market, today announced that Cyber Cloud, a subsidiary of China Digital TV, has reached a capital increase agreement (the "Agreement") with Beijing Gehua CATV Network Co., Ltd. ("Gehua"), one of the leading cable TV operators in China. Pursuant to the Agreement, Gehua will invest RMB13.89 million in cash to take a 10% stake in Cyber Cloud.
The Agreement is supplementary to the strategic partnership agreement between China Digital TV and Gehua announced on April 16, 2014, in which the companies agreed to establish a strategic partnership on cloud computing technology and related businesses, and to enter into an equity investment agreement.
"We are pleased to have reached this agreement with Gehua after the launch of our strategic partnership earlier this year," said Dr. Lu Zengxiang, China Digital TV's acting chief executive officer and acting chief financial officer. "Cyber Cloud has deployed cloud service platforms in over 20 provinces, covering 80 million cable TV users and 8 million IPTV users all over the country. We believe this partnership will be hugely beneficial both in promoting Cyber Cloud's cloud gaming platform among cable TV users covered by Gehua, and in demonstrating its value to other cable TV operators seeking to diversify into streaming platforms and cloud gaming. Cyber Cloud is in negotiations with a number of other IPTV and cable TV operators to explore more cooperation opportunities, which we hope will generate further upside to Cyber Cloud's business in the near future."
Safe Harbor Statements
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "may," "should" and similar expressions. Such forward-looking statements include, without limitation, comments by management in this announcement about trends in the CA systems, digital television, cable television and related industries in the PRC and China Digital TV's strategic and operational plans and future market positions. China Digital TV may also make forward-looking statements in its periodic reports filed with the Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about China Digital TV's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from projections contained or implied in any forward-looking statement, including but not limited to the following: competition in the CA systems, digital television, cable television and related industries in the PRC and the impact of such competition on prices, our ability to implement our business strategies, changes in technology, the progress of the television digitalization in the PRC, the structure of the cable television industry or television viewer preferences, changes in PRC laws, regulations or policies with respect to the CA systems, digital television, cable television and related industries, including the extent of non-PRC companies' participation in such industries, and changes in political, economic, legal and social conditions in the PRC, including the government's policies with respect to economic growth, foreign exchange and foreign investment.
Further information regarding these and other risks and uncertainties is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. China Digital TV does not assume any obligation to update any forward-looking statements, which apply only as of the date of this press release.
About China Digital TV
Founded in 2004, China Digital TV is the leading provider of CA systems and comprehensive services to China's expanding digital television market. CA systems enable television network operators to manage the delivery of customized content and services to their subscribers. China Digital TV conducts substantially all of its business through its PRC subsidiary, Beijing Super TV Co., Ltd., and its affiliate, Beijing Novel-Super Digital TV Technology Co., Ltd., as well as subsidiaries of its affiliate.
For more information please visit the Investor Relations section of China Digital TV's website at http://ir.chinadtv.cn.
About Beijing Gehua CATV Network Co., Ltd.
Approved by Beijing Municipal Peoples Government, Beijing Gehua CATV Network Co., Ltd. (BGCTV) was founded in September 1999. BGCTV is principally engaged in the development, construction, operation, management and maintenance of cable radio and television networks in Beijing. The Company primarily provides the reception, relay and transmit of radio and television programs, the video on demand, network information services, Internet access service based on cable television network, value added service for Internet data transmission, domestic VoIP service, and advertising design, production and publication via cable television, etc. In 2001, BGCTV was listed at the Shanghai Stock exchange (Stock code: 600037), which is China's first listed cable network company. In addition, the Company is one of the earliest pilot radio and television enterprises to test three-network convergence and hi-tech enterprise in Beijing as well. As of the end of June 2014, BGCTV had over 5.5 million cable television users, among which, 3.9 million users subscribe digitalized HD two-way service.
For investor and media inquiries, please contact:
China Digital TV
Tel: +86-10-6297-1199 x 9780
In the U.S.:
SOURCE China Digital TV Holding Co., Ltd.