Grand Vision Media (LON:GVMH) shares rose over 100% in early trade on Wednesday following the announcement of a deal with the Dadi Cinema Group in China.
Dadi operates over 470 cinemas across China and the initial agreement includes the installation of Grand Vision Media’s advertising screens in 22 locations and the rights to cover another 400+ locations.
Shares in the group rose over 25p to hit 40p before falling back.
Grand Vision Media Holdings CEO Jonathan Lo commented:
“We are delighted to have come to this agreement with Dadi as it provides us with the opportunity to take our advertising clients into Dadi’s popular cinemas in key locations across China.”
“The agreement also allows us to expand our advertising products to mega video walls and across a broader geographic coverage, thus offering our customers more options to best meet their marketing goals.”
Grand Vision Media Holdings operates predominantly in China and targets the growing middle classes with a range of advertising channels, in particular 3D screens in cinema foyers.
Today’s announcement signals further expansion of their screen network and lays the foundations for higher revenue in the future.
In addition to the 3D screens in Cinemas, Grand Vision Media acts as a media agency for domestic Chinese and overseas companies seeking to target Chinese consumers through digital channels.
The group provides agency services that can translate and prepare campaigns ready for distribution on Chinese platforms such as Weibo.
In the six months to 30th June 2018 Grand Vision Media revealed a 97% increase in revenue to HK$ 7.4m up from HK$ 3.8m in the same period a year prior.
With their full year ending 31st December 2018 investors will be awaiting full year results eagerly for any signs of increasing revenue growth.
Grand Vision Media entered the London Stock Exchange main market in 2018 and is pursuing a strategy of significant growth in mainland China.