Our core business is the distribution of films produced in China and Hong Kong to theater circuits in China. Since our inception in November 2003 to December 31, 2011, we distributed 154 films, including 37 films internationally. The films we distributed have earned numerous industry awards, including Hong Kong Film Awards and Golden Horse Awards, and received recognition at prominent international film festivals, including the Berlin Film Festival. We distribute (i) films produced by third-party production studios for which we have distribution rights and (ii) films we produced and in which we hold ownership interests in the copyright. We generally distribute between 16 and 20 films theatrically per year.
Our film distribution activities primarily comprise of (i) film sourcing, which includes identifying quality film projects with commercial potential and securing film distribution rights, (ii) print and marketing, which includes coordinating the distribution of film prints to theater circuits, as well as conducting marketing and publicity campaigns to promote the films to their target audiences, (iii) exhibition, which includes negotiating the terms of exhibitions of films in domestic and international movie theaters as well as through non-theatrical distribution channels and (iv) film advertising, which includes the sale of approximately three minutes advertising time immediately prior to the start of the theatrical screening of a film, in-film product placements and cross-promotion campaigns.