Shifang Holding (01831.HK) announced that, on 1 December 2011, its three subsidiaries - Beijing HongXinTu Culture Communication, Fujian ShiFang Culture Communication, and Xiamen DuKe Information Science & Technology - entered into a JV agreement with Liaoning Baixin Media for the establishment of the JV company, ShiFang XinDa Culture Media, in the PRC to engage in the operation of the newspaper, City Lifestyle Weekly, and the magazine, TV Friends.

The total registered capital of the JV company is proposed to be RMB5 million, in which each of Beijing HongXinTu, Fujian ShiFang and Xiamen DuKe shall contribute RMB1 million, representing 20% of the total registered capital of the JV company and Liaoning Baixin shall contribute the remaining RMB2 million, representing 40% of the total registered capital of the JV company.

Upon the establishment of the JV company, Beijing HongXinTu, Fujian ShiFang and Xiamen DuKe will jointly provide an interest-free shareholders' loan of RMB7 million for a term of 5 years to the JV company which will be used as the working capital for the JV company.