China South Publishing & Media Co. Ltd. was established in 2008 to operate the publishing businesses owned by Hunan Publishing Investment Holding Group, which was created in 2001 as an investing and operating enterprise authorized by the Hunan Provincial Government. The group operates and manages all of the companies’ state-owned assets and public institutions owned by the former Bureau of Press and Publication of Hunan Province.
China South Publishing & Media Co. Ltd was listed on the Shanghai stock exchange in 2010. As a multi-media publishing group it produces a wide spectrum of media products and is involved in editing, printing, distribution and investment. Book publishing includes trade, textbooks, educational materials, multimedia products, and investment.
China South’s publishing business is carried out by twelve publishing houses. The company has also become the largest bookseller in the Hunan Province. Recently, the group established a digital publishing unit that plays a crucial role in their strategic transition.
Subsidiaries of China South Media include China South Media Hunan Publishing Center Branch Company, China South Media Hunan Education Publishing House Branch Company, Hunan People's Publishing House Co., Ltd., Hunan Literature & Art Publishing House Co., Ltd., Hunan Yuelu Publishing House Co., Ltd., Hunan Science & Technology Publishing House Co., Ltd., Hunan Juvenile & Children's Publishing House Co., Ltd., Hunan Fine Arts Publishing House Co., Ltd., and Hunan Electronic Audio & Video Publishing House Co., Ltd.
China South was fully listed in this ranking for the first time in 2015 after respective detailed and authoritative information was made available through cooperation with the Chinese independent publishing industry news service BookDao.
Analysis & Key Developments
In fiscal 2015, China South experienced a boost in both revenues and earnings. Revenues climbed from 15.99 million RMB to 18.27 billion RMB. Earnings increased to 1.78 billion RMB from 1.53 billion RMB. The company benefited from its steady publishing growth, expansion of digital education and a large share of the textbook markets in Hunan and other provinces.
China South’s retail operations performed well. According to the statistics provided by Chinese retail monitoring service OpenBook, the company had a 3.54% share in the Chinese trade retail market in 2015.
In 2015, China South established a new subsidiary, China South Antuo International Culture & Media (Beijing) Co., Ltd., which is committed to exploring international publishing.
Hunan BOFO Fund Management Co., Ltd., another newly established subsidiary of China South, invested in traditional publishing houses as well as cultural and media industries.
China South generates 76% of its revenues in the province of Hunan.
Through copyright trade, imports and exports of books, China South has been actively exploring the international market. These efforts are led by a partnership with Huawei, a leading worldwide digital company, to develop digital publishing and educational innovation and continue with traditional publishing. In 2015, China South signed a framework agreement on strategic cooperation with Pearson to deepen their cooperation on textbooks, teaching materials, digital education and international education.
Together with Huawei, China South established its digital education arm, Tianwen, in 2010. Tianwen’s core product is AiSchool, a cloud-based learning solution that targets K12 schools which experienced rapid growth in revenue and profitability. The system is used by more than 2,000 schools in 20 provinces. Tianwen posted revenue of 397 million RMB in 2015, and has found success overseas.
The company had 19 titles listed on OpenBook’s National Top 50 Bestsellers, and 28 titles were included overall on bestseller lists.
Translated titles such as Passing by Your World and Le voleur d'ombres sold over 3 million copies each. Meet Your Unknown Self, A Brief History of Time, and Wish Someone by Your Side in Ups and Downs sold over 1 million copies each. The Secret, Prime Minister Of Qing Dynasty, You Are the Best Self, and You Should Believe Tomorrow Will Come sold over 800 thousand copies each. Let Me Stay By Your Side sold over 700 thousand copies.
The company also created bestsellers from the promotion of translated titles such as Hot, Flat, and Crowded, which China South introduced to the Chinese market. Stephen Hawking’s A Brief History of Time, The Universe in a Nutshell and The Grand Design, have also become highly popular.