BEIJING, May 6, 2014 /PRNewswire-FirstCall/ -- Charm
Communications Inc. (NASDAQ: CHRM) (the "Company"), a leading
advertising agency in China, today
announced that its Audit Committee has approved its decision to
provide financial results and earnings guidance on a biannual basis
from financial year 2014 onwards.
The Company notes that as a foreign private issuer, it is only
required to submit an interim balance sheet and income statement as
of the end of its second quarter each year, pursuant to Rule
5250(c)(2) of the NASDAQ Stock Market Rules. In addition, there is
no home country rule on financial reporting obligations in the
Cayman Islands, where the Company is incorporated.
The Company believes this decision is a prudent one that takes
into account the long-term prospects of the Company. By shifting
away from emphasizing short-term earnings targets, management will
be able to better focus on longer-term value creation for the
Company and its investors. In addition, in connection with the
Company's media investment business, significant media cost
contracts are normally entered on an annual basis. The change to
biannual reporting will reduce the degree of subjective allocation
of significant media costs that management would otherwise need to
make at each quarter end.
The Company reaffirms the benefits of voluntary disclosure to
the capital markets in reducing information asymmetry and lowering
stock volatility. Going forward, the Company will continue to
maintain good communications with analysts and investors and
provide meaningful and qualitative information in its future
releases. With a better understanding of the drivers of long-term
corporate performance, investors will be able to identify the data
that helps measure the Company's prospects and expectations for
performance against those drivers.
About Charm
Charm Communications Inc. (NASDAQ: CHRM) is a leading
advertising agency group in China
that offers integrated advertising services with particular focus
on television and the internet. Charm's integrated advertising
services include full media planning and buying, as well as
creative and branding services. Charm has built a full service
digital advertising platform, which offers digital campaign
capabilities across all key digital media, including search
engines, display portals, online video sites and social networking
services. Charm also secures advertising inventory and other
advertising rights, such as sponsorships and branded content, from
premium media networks and resells to clients as part of its
integrated media offerings. Charm's clients include China's top domestic brands, as well as a
number of major international brands, across a wide range of
industries. Since 2003 Charm has been the top agency every year for
China's leading television
network, China Central Television (CCTV). For more information,
please visit http://ir.charmgroup.cn.
Safe Harbor Statement
This press release 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, and as defined in the U.S. Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this press release are forward-looking
statements and involve certain risks and uncertainties that could
cause actual results to differ materially from those in the
forward-looking statements, such risks and uncertainties include
without limitation, the market reaction to the Company's decision
to discontinue quarterly earnings releases, investors'
interpretation of the Company's decision and its impact on
investors' confidence in the Company and the Company's ability to
provide adequate information on the performances of the Company
through its biannual reporting. These forward-looking statements
are based on management's current expectations, assumptions,
estimates and projections about the Company and the industry in
which the Company operates, but involve a number of unknown risks
and uncertainties. Further information regarding these and other
risks is included in Charm's filings with the U.S. Securities and
Exchange Commission. The Company undertakes no obligation to update
forward-looking statements to reflect subsequent occurring events
or circumstances, or changes in its expectations, except as may be
required by law. Although the Company believes that the
expectations expressed in these forward-looking statements are
reasonable, it cannot assure you that such expectations will turn
out to be correct, and actual results may differ materially from
the anticipated results. You are urged to consider these factors
carefully in evaluating the forward-looking statements contained
herein and are cautioned not to place undue reliance on such
forward-looking statements, which are qualified in their entirety
by these cautionary statements.
For investor and media inquiries, please contact:
In China:
Ms. Jenny Wang
Investor Relations Department
Charm Communications Inc.
Phone: +86-10-8556-2527
Email: ir@charmgroup.cn
In the United
States:
Mr. Justin Knapp
Ogilvy Financial
Phone: +1-616-551-9714
Email: chrm@ogilvy.com
SOURCE Charm Communications Inc.