Our Business Lines

TV Direct Sales Platform
A key contributing factor to the success of our TV direct sales platform is our significant TV air time presence. Since 2003, we have been the one of the largest TV direct sales operators in China in terms of revenue according to Euromonitor. Our TV direct sales programs, which are typically five to ten minutes in length, are currently aired on four nationwide China Central Television, or CCTV, channels, 20 national satellite TV channels, six international satellite channels operating in China and 14 local channels. Combined, we broadcast to over 90% households in China, reaching to 330 million households or 500 million people in China. Our extensive media network provides broad exposure for many small and medium enterprises to promote their brands and market their products throughout China.

Nationwide Distribution Platform
Our nationwide distribution network further extends the media effect on the ground through local and print media and increases availability of products on a local/regional level. Through working with 80 provincial level distributors, our products reach over 20,000 retail outlets covering nearly all of the cities and counties in China. We typically grant our distributors the exclusive right to distribute selected products and services in their respective territories. Complementary to our TV direct sales platform, our nationwide distribution network extends our product and service lifecycles and maximize our sales by promotion of our brands through our TV direct sales platform, advertising in local print media and other joint promotional efforts.

Joint Sales and Marketing Services Arrangements
During 2006, we entered into two new types of arrangements - joint sales arrangements and marketing services arrangements. Under a joint sales arrangement, we generate TV direct product and services sales revenues. In addition, as consideration for the marketing support provided by our TV direct sales programs, we receive additional payments from our joint sales partners based on sales of featured products or services through their own distribution channels. Under a marketing services arrangement, we provide a marketing plan, related TV advertising time and call center support to our customers.