Hong Kong


	The Japan Times WORLD EYE REPORTS HONG KONG

©THE JAPAN TIMES	Wednesday, June 26, 2002

Making the connection between old and new

In Hong Kong, the property sector has been dominated by a small number of property developers. Since the capital required for significant participation is very large, only a few key players have stood out in the industry. Lai Sun Development has made its mark not only because of its accomplishments within the property sector but also because it has branched out into another less traditional area of business - multimedia.

Although the Lai Sun brand has long been associated with property and retail, the company is now diversifying across markets and creating synergies between the old and new. One the most exciting subsidiaries under the strategic investment umbrella of Lai Sun Development is e-Sun Holdings.

Peter Lam (left), chairman of Lai Sun Development, with Nansun Shi (right), vice chairman of e-Sun Holdings affiliate Media Asia Group

The integrated media and entertainment company, aimed at the global Chinese audience, is also targeting the international audience interested in Chinese-produced entertainment. Peter Lam, the chairman of Lai Sun Development, is optimistic about the prospects of e-Sun.

"The combination of scarce quality Chinese content and the rapid development of Pay TV and satellite TV services is providing limitless opportunities for the company," Lam says. "Through e-Sun, we have now established a formidable presence within this arena and are well-positioned to capitalize on the vast multimedia possibilities within Mainland China."

This media thrust goes hand in hand with Lai Sun's real estate developments in China. One of these, Eastern Place in Guangzhou, is strategically located by an MTR station and will provide the average Chinese consumer with a wide array of choices.

"We have completed phase II of Eastern Place and have built 900 apartments so far," continues Lam. "We are now doing phase III, which is another 800 apartments. Then we have a final stage, which is going to house serviced apartments and a modern shopping facility. We will also run the most upmarket residential club, complete with a gym, sauna and 400,000 square feet of restaurant space. We have put in a state-of-the-art cinema, which became the second highest grossing cinema in China just one year after it opened. We are imposing a new lifestyle in Guangzhou as the city progresses and prospers."

Nansun Shi, vice chairman of e-Sun Holdings affiliate Media Asia Group, which produces and distributes media content, adds: "The Chinese people have a taste for these entertainment products and it is still virgin territory. We are very well positioned as a group to capitalize on this. Lai Sun's specialty is in retail, and therefore they have the shopping malls which brings in the customers. That's where Media Asia can then add value to the cinema complex. We can have the stars from our movies appear in those locations and promote movies. This brings in even more people. It's a win-win situation that all makes sense in the end. Chinese consumers need more choice, more options and we are working together to provide that."

"We know how to do both Chinese as well as American production, which gives us the competitive edge," Shi continues. "I believe that Hong Kong is unique because we are very internationally savvy, in terms of business, our legal system, infrastructure, accounting and the rest. On the other hand, because of our traditional relationship with China, we have a pulse on the Chinese system, so we can be the intermediary between both East and West."

Along the same lines, e-Sun has begun construction of East Asia Satellite Television (EAST) City, a production center and tourist attraction to be built in Cotai City in the Macau Special Administrative Region. When fully operational in 2003, EAST-TV City will produce 5,000 hours of programming each year and include nine production studios, location filming and post-production facilities as well as a tourist attraction consisting of studio tour experiences, restaurants and shops.

Lam stresses that, in midst of all these changes, Lai Sun will continue its traditional focus on property development, even though creating pre-eminent branded media and entertainment through e-Sun may prove to be the more dynamic aspect of the business.

"Media is language based," he concludes. "It is very well known who the key content providers are within English and Hispanic media markets. However, the Chinese do not have one yet. Within this rapidly growing market, I'm sure there will be not be only one, but we hope that we can be one of the first and one of the better ones."

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