Shougang Concord Technology (00521.HK) has recently been advised by Southern Media Corporation that the Steering Group on the Reform of Guangdong Cultural Structure has introduced new reform measures to reorganise the cable digital broadcasting networks of Guangdong Province into one centralised network under one provincial broadcasting network company.

In this connection, Shougang Concord Technology will no longer be able to operate its digital TV business under the existing structure. The company is currently verifying the legal effectiveness of the reform measures and in discussion with its JV partner on the possible sale of its interest in the digital TV business.

Moreover, Shougang Concord Technology is currently in discussion with a business partner on the disposal of partial interest in its non-wholly owned subsidiary. As at December 14, the terms of the proposed disposal are still under discussion and no binding agreement in relation to the proposed disposal had been signed.