News and Events
09-08-2010 Press Release - The Birth of a Brand: CJ7
Emcom International Limited (the “Group”) is pleased to announce the successful release of CJ7: The Cartoon (長江7號愛地球) (the “Cartoon Movie”) in mainland China in July this year. Since the Cartoon Movie’s release, it has been consistently among the top ten in this summer movie box-office chart, and already ranked number fifth in gross box-office among all cartoon movies ever produced in mainland China domestically. It is anticipated that as the Cartoon Movie continues to be screened nationwide during this Summer and beyond, its box office will continue to rise, and the popularity of “CJ7” brand and its impact among children will certainly expand and grow as well. As the Cartoon Movie imparts positive messages and proper values to its audiences, especially the children, the Group is pleased to note that a growing number of enterprises with social responsibility have decided to sponsor screening of the Cartoon Movie, hence the Cartoon Movie will be exposed to an even wider base of audiences. As per the announcement and the circular of the Company dated 22 February 2010 and 3 May 2010, the Cartoon Movie was 100% funded and produced by China Film Group (“China Film”) under the Group’s license. All box-office earnings, after deducting the production and others costs, will be shared with China Film in accordance to an agreed ratio. By adopting such prudence arrangement, the Group not only able to enjoy the box-office’s growth and avoid sharing any possible downside risks, but also enable the Group to adopt better cost control and risk management. As we all know, the Cartoon Movie is a tremendously effective tool to promote the image of “CJ7” and facilitate the marketing of CJ7’s merchandise. The Group believes that it will become a key contributor to the Group’s profit. As the master licensee of all "CJ7" related intellectual property rights, all licensed products, TV cartoon series and online games etc, the Group believes “CJ7” will continue contribute a long-term income to the Group in the future. Although the CJ7 brand building is still in the early stage, with the awareness and massive publicity created by the Cartoon Movie, the Group has already cooperated with a numbers of reputable manufacturers and retailers in manufacturing and distributing CJ7 merchandises and products under our stringent quality requirements. They are: 1. Hing Lee (HK) Holdings Limited (stock code: 396), a company listed on the Stock Exchange of Hong Kong Limited with more than 1,000 furniture retail stores throughout China, to produce a line of furniture catered for children; 2. Quanzhou Cardinal Travel Product Co. Ltd, a reputable travel products company, to produce a variety of children’s school bags and trolley cases that are available for sales in Wal-Mart stores throughout China and a number of other large supermarkets; 3. Harper Collins Publishers, a subsidiary of News Corporation, collaborates with the Group to launch a variety of “CJ7: The Cartoon” (長江7號愛地球) children’s book series; and 4. Branding Corporation Limited, a licensee, has specially designed a range of interesting and environmental friendly life-style products catered for families. All of the above products entailed the higher technology which meets our stringent quality requirements, preventing them from being pirated unscrupulously. At an appropriate time, the Group will study the feasibility of developing franchise stores of “CJ7” merchandises in order to further penetrate this huge retail market. The “CJ7” license online game developed and distributed by NetDragon Websoft Inc. (stock code: 777) has been launched in parallel with the Cartoon Movie, and an open beta was launched on 15 July with overwhelming initial response. Within an hour after the release of the test run to public, the number of online players kept increasing, and six additional servers need to be added immediately. In addition, the Group is also planning to integrate some of the “CJ7” contents with 3G mobile phones and other networked entertainment platforms. The Group believes that after the Cartoon Movie has been screened all over China throughout this summer, our licensees will launched more “CJ7” products to the market to greet the beginning of a new school year. As a continuous branding activity for CJ7, during the Christmas and Chinese New Year holidays, the “CJ7” brand will join hands with “Bingo Children’s Environmental Education Fund” to organize various activities in schools and residential districts in order to bring warmth and joy to the children in the festive seasons. As a summation of the above, “CJ7” and other similar nature projects in the Group’s pipeline, are not simply cartoons or movies. Most importantly, they represent the birth of new brands which will grow together with their audience. With continuous branding development and marketing promotion, the Group believes that they will win over the hearts of adults and children, and destined to become some of the most recognised brand names in the coming generations.