BEIJING, March 21, 2018 /PRNewswire/ -- AirMedia Group
Inc. ("AirMedia" or the "Company") (AMCN), an operator of
out-of-home advertising platforms in China targeting mid-to-high-end consumers as
well as a first-mover in the travel Wi-Fi market, today released
the following letter to shareholders from the chairman of the
Company's board of directors.
Dear Shareholders of AirMedia,
Following AirMedia's ((Nasdaq: AMCN) official announcement of
its corporate transformation and upgrade in 2015, AirMedia has
achieved remarkable business development success in the past three
years. AirMedia has made progress in the construction of aviation
satellite communications, integrated solutions for cabin Internet
and the commercial operation of railway networks. AirMedia has
successfully transformed from a traditional aviation and outdoor
media company to a supplier of aviation and railway mobile Internet
services at the forefront of the era.
In the next leg of its journey, AirMedia will continue to
advance the state of mobile Internet by offering long-distance
transport services. AirMedia has cooperated with a number of
airlines to provide integrated solutions for mobile Internet; and
has diversified its business by cooperating with major railway
administrations. On this occasion, we would like to express our
sincere gratitude to the shareholders of AirMedia. Thank you for
your continued support for AirMedia's development and for your
recognition of and support for AirMedia.
China's Aviation Industry
Ushers in a New Era of In-flight Wi-Fi Services and the Market Size
Is Expected to Exceed RMB 10
Billion
In January 2018, China Eastern
Airlines, China Southern Airlines, Hainan Airlines and a number of
other airlines successively announced the lifting of restraints on
in-flight Wi-Fi services through mobile devices such as mobile
phones and pads. As a consequence, China's civil aviation industry will enter "a
new era of in-flight Wi-Fi services" in 2018. At the same time,
with the launch of China's
self-developed high-throughput KA satellite, bandwidth capacity has
been greatly improved and bandwidth cost has been significantly
reduced, providing strong support for Internet services in domestic
aircraft cabins.
Furthermore, according to data disclosed by civil airlines, 116
domestic wide-body aircraft for civil aviation have achieved
air-to-ground connection and 237 have not. At the same time, nearly
3,000 narrow-body aircraft, which account for 90% of the total
number of passenger aircraft of civil aviation, are expected to
gradually renovate and upgrade mobile Internet in cabins this year.
The Ku/HTS Ku/Ka airborne satellite communications technology
solution independently developed by AirMedia will provide airlines
with first-class customized cabin Internet transformation service
to capture the market opportunities.
According to International Air Transport Association,
China will replace the United States and become the world's
largest aviation passenger transport market by 2024. Such a vast
and prosperous market will provide space for the rapid development
of AirMedia.
AirMedia Has Anticipated Opportunities and Made Remarkable
Achievements in Air-to-Ground Connection
I. AirMedia and China Unicom Established a Joint Venture
Named "UnicomAirNet"
In April 2017, AirMedia and China
Unicom jointly established UnicomAirNet Co., Ltd.
China Unicom is one of the few companies in China that has a satellite network license and
an airborne business license issued by the Ministry of Industry and
Information Technology. Therefore, UnicomAirNet proactively carries
out aviation-oriented Internet business development under the
authorization of China Unicom. When Emmanuel Macron, the French
President, visited China in
January 2018, China Unicom and
Eutelsat reached cooperation and agreed to jointly explore
satellite communications business in regions along the Belt and
Road initiative. UnicomAirNet, an important undertaker in the
system of satellite network communications service construction,
will be responsible for implementing the overall upgrade of
satellite communications technology and aviation-oriented mobile
Internet operations.
II. Domestic Leading Aviation-oriented Internet
Solutions
AirMedia owns aviation-oriented Internet solutions with its own
intellectual property rights. The Ku/HTS Ku/Ka airborne
satellite communications technology solution independently
developed by AirMedia is competitive at a global scale. By adopting
the Gilat satellite communications system to connect Ka and Ku
satellite resources, this system enables airline passengers to
enjoy high-speed and stable mobile Internet services at a height of
10,000 meters.
At the aviation-oriented mobile Internet experience exhibition
held at Beijing Unicom Satellite Communications Ground Station in
January 2018, representatives of
airlines and partners personally experienced the new Internet
entertainment system for airline cabins brought by "100M bandwidth" provided by AirMedia.
III. Joined Hands with Global Top Partners
In 2017, AirMedia cooperated with Kontron and Gilat Satellite
Networks from Israel to take the
lead in developing an integrated technology solution for
Ku/HTS Ku/Ka airborne satellite communications. Kontron is the
largest supplier of embedded industrial computer products and the
largest supplier of aviation Wi-Fi devices in the world. Its
aviation Wi-Fi products provide services on more than 4,000
commercial aircraft in the world. Gilat from Israel is a world-renowned supplier of
satellite communications products and services. Its satellite
communications system is widely used by major satellite operators
around the world. China's first
high-throughput Ka-band communications satellites used Gilat's
satellite communications system.
In October 2017, AirMedia agreed
to cooperate with Lufthansa Technik AG, Germany. As the global top MRO (aircraft
maintenance, repair and overhaul) company, Lufthansa Technik
provides maintenance, modification and other services for global
airlines. The cooperation between Lufthansa Technik and
AirMedia will provide technical support for modification of
aircraft's Wi-Fi system, helping AirMedia provide in-flight Wi-Fi
services compliant with the airworthiness requirements for
commercial aircraft used by China's airlines.
In November 2017, AirMedia and
Astronics from the United States
reached a cooperation agreement providing system integration,
airworthiness certification and technical support for
aviation-oriented Internet business. As a world-renowned aircraft
engineering group, Astronics has extensive experience in airborne
entertainment systems and cabin management systems. Its products,
integrated with Airbus A330 and A380, Boeing B747 and B777, etc.,
serve the mainstream aircraft models of more than 80 airlines in
the world.
IV. Leading Advantage of Cabin Entertainment
Resources
On January 17th, 2018, Beijing
AirMedia Tianyi Information Technology, a subsidiary of AirMedia,
formally entered into a strategic cooperation agreement with China
Eastern Airlines. AirMedia will provide important support for the
upgrade of China Eastern Airlines' aviation-oriented mobile
Internet services. In addition, AirMedia has a long-term basis for
cooperation with Air China, China Southern Airlines and other
airline giants. As the most influential operator of
transport-oriented film and television entertainment contents in
China, AirMedia owns exclusive
aviation-oriented copyright for more than 80% of films played in
domestic theaters. In terms of cabin entertainment contents and
advertising operations, AirMedia has more than 10 years of
operating experience. With the development of aviation-oriented
Internet, AirMedia provides users with more high-quality cabin
services and is capable of seeking new business models to achieve
new profit growth points.
V. Commercialization in the Field of Rail Transport Has
Achieved Initial Success
In the field of railway transport, AirMedia has signed contracts
with the top railway administrations of Beijing, Shanghai, Guangzhou and other cities for cooperation.
AirMedia will undertake mobile Internet construction and operation
in the field of railway transport.
At present, AirMedia has installed vehicle-mounted Internet
devices in more than 10,000 regular-speed trains to provide mobile
Internet access service for railway passengers. The service covers
nearly 90% of the railway lines in coastal developed cities and the
annual number of users covered accounts for about 60% of the total
annual passenger flow taking regular speed trains.
With the continuous enrichment of the related cooperation
resources of AirMedia, operating costs will be greatly reduced and
the commercialization capability will continue to become stronger.
As a result, the company's competitiveness will be further
improved.
A Number of Awards for AirMedia
In recent years, AirMedia has won recognition both inside and
outside the industry and received a number of awards through its
innovative development and high-quality services. At the
IFEC · 2017 - China Air-to-Ground Internet Industry
Innovation Summit, AirMedia was awarded 2016 China Aviation IFEC
Best Commercial Operation Award; at the 12th Asian Brand
Ceremony, AirMedia was award the title of China (Industry) Top Ten Leading Brands and
Guo Man, chairman of the board of
directors and CEO of the Group, was honored with the title of
China (Industry) Brand Top Ten
Innovative Persons; with its innovative mobile Internet services in
the field of long-distance transport,
Wangfan World Network Technology, a subsidiary of
AirMedia, was awarded 2017 Top 100 Startup Dark Horses and became
one of the Most Promising Startups.
At the same time, many outstanding talents and investors in the
industry have also affirmed and supported AirMedia's mobile
Internet development in the field of long-distance transport. The
research and development team in Beijing with nearly 100 employees is
continuously providing strong technical support for mobile Internet
solutions for aviation and railways.
Looking to the Future, AirMedia Has Potential for
Growth
From the foundation of a large user base, AirMedia covers all
the demands of users for pre-travel, in-travel and post-travel
through its rich content and diversified Internet services. By
building an "offline + online" network service ecosystem for
travel, AirMedia has created a mobile Internet access platform with
huge commercial value that provides a wide range of users and
partners with diversified, high-precision and high-value services,
so as to provide an effective guarantee for subsequent
commercialization and mutual benefits.
AirMedia reached a turning point in 2015, began achieving
long-term goals in 2016 and transcended this strategic
transformation in 2017. In 2018 and in the near future, AirMedia
will still use all of its resources to explore and innovate new
models of mobile Internet in the field of long-distance transport
such as aviation and railway, so as to create more value and
returns for the majority of our shareholders. With the continuous
advancement of related businesses, AirMedia is at a new turning
point in the markets. We have greater confidence and ability to
create sustained returns for shareholders. Thank you again.
Herman Man Guo
Chairman and Chief Executive Officer
AirMedia Group Inc.
About AirMedia Group Inc.
Incorporated in 2007 and headquartered in Beijing,
China, AirMedia Group Inc. (AMCN) is an operator of
out-of-home advertising platforms in China targeting
mid-to-high-end consumers as well as a first-mover in the travel
Wi-Fi market. AirMedia sells advertisements on the routes
operated by several Chinese airlines and at Sinopec's service
stations in China. AirMedia also has concession
rights to operate the Wi-Fi systems on trains administered by eight
railway administrative bureaus in China as well as on
many long-haul buses in China. For more information, please
visit http://www.airmedia.net.cn.
Forward-Looking Statements
This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements, including but not limited to, the Company's business
strategies and initiatives as well as the Company's business plans;
the Company's future business development, results of operations
and financial condition; expected changes in the Company's revenue
and certain cost or expense items; trends and competition
in China; general economic and business conditions
in China; and other risks detailed in the Company's filings
with the Securities and Exchange Commission. These
forward-looking statements involve known and unknown risks and
uncertainties and are based on current expectations and projections
about future events and financial trends that the Company believes
may affect its financial condition, results of operations, business
strategy and financial needs. Investors can identify these
forward-looking statements by words or phrases such as "may,"
"will," "expect," "anticipate," "aim," "estimate," "intend,"
"plan," "believe," "potential," "continue," "is/are likely to" or
other similar expressions. 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 the Company cautions investors that actual
results may differ materially from the anticipated results.
Company Contact:
Richard Wu
Chief Financial Officer
AirMedia Group Inc.
Tel: +86-10-8460-8678
Email: ir@ihangmei.com
Investor Contact:
Tina Xiao
President
Ascent Investor Relations LLC
Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
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SOURCE AirMedia Group Inc.