Mr John C C Chan said, "The year 2002 was a challenging period for RoadShow Holdings Limited and its subsidiaries. Our financial performance felt the impact of the weak world and local economic environment that affected most commercial sectors, particularly the advertising industry. Nonetheless, compared to advertising industry norms, the Group performed well."

For the year ended 31 December 2002, RoadShow Holdings Limited and together with its subsidiaries, the "Group", reported total operating revenue of HK$ 173.4 million and profit attributable to shareholders of HK$ 55.0 million, representing a decrease of approximately 42% and 65% respectively from 2001. The Group's revenue was derived principally from media sales and management services in both Hong Kong and Mainland China accounting for approximately 84% and 6%, respectively, of the Group's total operating revenue in 2002.

RoadShow has achieved a lot in a relatively short time for a very young company in a highly competitive market. The success is largely attributable to the identification of a niche with a highly innovative concept that gains access to a large and hitherto untapped audience. The Group would have accomplished more during the past year if the economic situation had been better. However, the advertising business, of which RoadShow is a part, is very sensitive to corporate results and general economic conditions.

"Going forward it is difficult to predict when the world and local economies will recover, although we anticipate that there will be a lag before the upturn translates into higher advertising spending. Whilst we are in this lacuna, RoadShow continues to lay the groundwork for further expansion," said Mr Chan.

"Having built an almost unassailable position in the markets it serves in Hong Kong, RoadShow has also made a successful entry into the mainland, which demonstrated that its innovative concept is readily exportable outside Hong Kong."

"Our presence in key Chinese cities, teaming with leading Chinese entities, offers tremendous opportunities. We can expect that with China's entry into the World Trade Organization, as well as its hosting of the 2008 Olympic Games in Beijing and of the 2010 World Expo in Shanghai, the advertising market in China will show a very sharp increase."

"In terms of long-term potential, the mainland market is immeasurably larger than Hong Kong. And, whilst there will be a great deal of competition, we are there with our innovative concept that is unique in the advertising industry."

"RoadShow's connections with the KMB Group are a definite advantage in doing business in China. Both KMB Group and RoadShow have strong and harmonious relationships with many transport operators. As a Hong Kong based company, we have the advantage of possessing great insight into the Chinese market and indepth understanding of the Chinese culture. As our MMOB and other services are public transport based, these assets give us a significant competitive edge."

"We anticipate that given RoadShow's reputation for innovation and quality service, these investments in China will attract the attention of other leading Chinese advertising companies interested in exploring joint venture relationships."

In Hong Kong, RoadShow will continue to grow as it continues to strengthen relationships with existing customers and diversify by aggressively adding to its client base.

"We will, however, continue moving ahead in a prudent manner. RoadShow is a cash rich company with low gearing and is able to weather the economic malaise and prepare itself to take advantage of better economic times when they materialise."

"Our core strategy is to meet the needs and expectations of public transport operators and advertisers and to continue to expand the business to transit vehicles in the greater China region and other countries."

"We will seek strategic and profitable partnerships in carrying out the MMOB business in other modes of transportation to expand our delivery channels and geographical reach. We will also diversify our operations to increase our revenue base and operating efficiency."

"Systems development also remains a top priority. We will pursue the development of a Global Positioning System that will benefit KMB's bus operations, enable the provision of real time information to our audience and add value to RoadShow's services. The system will also enable the bus operators whom we serve to expand their own systems and develop new applications. We will continue to test GPS applications with various suppliers, but we will not implement a system until our stringent specifications are met or surpassed."

"We will continue to work diligently to provide our advertisers with a cost effective access to a growing audience. Our passengers benefit by receiving essential public transit information and infotainment at no extra cost and we are continuously taking steps to improve and enrich the content of our programming."

China's rapid economic growth has led to the country becoming the fastest growing advertising market in the Asia-Pacific region. RoadShow's strategy includes acquisition of or investing in complementary businesses or establishment of joint ventures that the Company believes will complement our business. The Group will continue to monitor developments on the mainland and pace its strategy to establish this regional network accordingly.

Mr Chan added, "Our vision is to be the leading media sales company in the greater China region by providing value-added services to passengers and an effective advertising medium for advertisers at competitive prices. While pursuing this goal, we will build our stakeholders' understanding and confidence in the Group's long-term plans and development through transparency, communication and performance."