Feb. 8, 2010 (China Knowledge) - Hunan TV & Broadcast Intermediary Co Ltd<000917>, which is mainly engaged in the production and distribution of advertisements and TV programs in Hunan Province, announced that it will set up a film investment subsidiary in Beijing.

The company said in a statement filed with the Shenzhen Stock Exchange that the new investment company will have a registered capital of RMB 50 million. Hunan TV will hold a 95% stake in the company, and the management team will hold the remaining 5%.

The new company will be engaged in movie production and distribution as well as providing financing for the purchase of screenplays, etc.

In the first six months of 2009, Hunan TV & Broadcast's net profit dropped 77.54% year on year to RMB 14.82 million. 

Its parent company, Hunan Satellite Television, reaches more than 58 million viewers in China, is known for programs such as Super Girl, a program similar to American Idol.