China Marketing Media (OTC BB:CMKM)

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Friday, December 30, 2011

Investor Alert

We view CMKM as a going provate candidate as they just sold their most "promising" asset:

BEIJING, Dec. 29, 2011 (GLOBE NEWSWIRE) -- In accordance with the agreement signed on December 26, 2011, Shenzhen New Media Consulting Co. Ltd ("SNMC"), an indirectly owned subsidiary of China Marketing Media Holdings, Inc. (China Marketing Media or "the Company") (OTCBB:CMKM), has announced the sale of its subsidiary, Shenzhen Media Investment Co. Ltd. ("SMI" ). Under the Agreement, Bin Li, a related party and a former director of the Company, and Feng Yu, an individual shareholder, acquired 90% and 10% of equity interest in the entity, respectively.

The sale price was approximately USD$5.5 million for the 90% equity interest to Bin Li and approximately USD$0.61 million for the 10% equity interest to Feng Yu.

To facilitate the foregoing disposition of SMI, SNMC entered into certain intra-company equity transfer agreements on December 23, 2011 with SMI, pursuant to which SMI transferred its 10% equity interest in Beijing Orient Converge Human Resources Management Center Co. Ltd., its 98% equity interest in Beijing Media Management Consultation Company ("BMMC") and its 30% equity interest in Shenzhen Directory Marketing Management Co. Ltd., all of which, prior to the disposition were the Company's subsidiaries, in consideration for approximately USD$0.8 million, USD$0.15 million and USD$2.4 million, respectively, to SNMC. In addition, Wengao Luo, a member of the Company's Board, agreed to transfer all of his 2% equity interest in BMMC to SNMC in consideration for approximately USD$3,141.

"China Marketing Media has been pursuing a strategy to expand its consulting service to the needs of the clients in the sales and marketing fields. 'SMI' has been suffering losses or barely broke-even since 2008. The Company anticipates that the sale of the interest will enable the Company to focus on the growth of its magazine and advertising business," declared Yingsheng Li, Chairman and CEO of China Marketing Media.

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Thursday, December 1, 2011

Comments & Business Outlook

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2011			2010			2011			2010

Revenue	$	6,627,666		$	9,122,428		$	23,365,433		$	26,626,368

Cost of revenue		4,869,666			6,152,549			16,928,824			18,361,801

Gross profit		1,758,000			2,969,879			6,436,609			8,264,567

Operating expenses:
Salaries and related benefits expenses		761,801			686,127			2,327,592			2,203,076
Selling, general and administrative expenses		1,032,202			803,082			3,598,191			2,373,612

Total operating expenses		1,794,003			1,489,209			5,925,783			4,576,688

(Loss) income from operations		(36,003	)		1,480,670			510,826			3,687,879

Other income (expense):
Interest income		1,784			26,208			6,695			111,633
Interest expense		(95,298	)		(415	)		(163,292	)		(34,431	)
Investment loss in unconsolidated affiliates		(33,019	)		(23,172	)		(194,499	)		(33,260	)
Subsidy income		40,290			-			101,376			-
Other (expenses) income		-			192			(83,424	)		787

Total other (expenses) income		(86,243	)		2,813			(333,144	)		44,729

(Loss) income from continuing operations before income tax expense		(122,246	)		1,483,483			177,682			3,732,608
Income tax expense		(1,364	)		(75	)		(70,082	)		(28,203	)

(Loss) income from continuing operations, net of income tax expense		(123,610	)		1,483,408			107,600			3,704,405