Interim Report 2005 - Clear Media

CONTENTS
1 Financial Highlights
2 Management Discussion and Analysis
9 Condensed Consolidated Income Statement
10 Condensed Consolidated Balance Sheet
11 Condensed Consolidated Summary Statement of Changes in Equity
12 Condensed Consolidated Cash Flow Statement
13 Notes to Condensed Consolidated Financial Statements
25 Supplementary Information
32 Factsheet at a Glance
33 Corporate Information
Clear Media Limited
Room 3205, 32/F., Windsor House, 311 Gloucestor Road, Causeway Bay, Hong Kong.
Tel: (852) 2960 1229 Fax: (852) 2235 3911

FINANCIAL HIGHLIGHTS
01
. Group turnover increased by 26% to HK$306.8 million
. Turnover of core bus shelter advertising increased by 26% to HK$303.2 million
. EBITDA increased by 28% to HK$123.4 million, EBITDA margin stayed at 40%
. EBIT rose by 37% to HK$55.2 million
. Netprofitgrewby23%toHK$35.4million,netprofitmarginstayedat12%
. Positive free cash flow at HK$16.5 million

02 MANAGEMENT DISCUSSION AND
ANALYSIS
Industry Review
China’s economy continued to record strong growth in the first half of the year, with GDP
having increased by 9.5% year-on-year. Despite measures taken to cool down the economy,
consumer spending continued to increase in tandem with increases in per capita income.
Owing to the stiff competitions among various consumer products, companies continued to
use advertising to differentiate and promote their brands. This created a positive
environment for the advertising industry in China, especially for consumer products.
Outdoor advertising continued to outpace the average growth rate of the overall advertising
industry in the first half of 2005, as more advertisers realised the cost-effectiveness of
outdoor advertising.
In the first half of 2005, Clear Media’s top three turnover contributors came from the
telecommunications, beverages and food sectors respectively. Turnover contributions from
the telecommunications sector continued to increase as key players increased their outdoor
advertising budget. The contribution from the food and IT sectors showed the most
significant increases during the period largely due to engagements with new customers.
Operations Review
Core Bus Shelter Advertising Business Continued to Show Strong Growth
Our core bus shelter advertising business spanning 30 key cities in China continued to show
strong performance. Over the last six months, our nationwide network has generated
HK$303.2 million in turnover (1H2004: HK$241.3 million), representing a 26% increase
from the same period last year, and accounted for 99% of the Group’s total turnover
(1H2004: 99%). The average selling price of our bus shelter advertising space increased by
10%, and the average occupancy rate was 62% (1H2004: 67%).
The top three cities, Guangzhou, Shanghai, and Beijing, in which we have a leading position
in outdoor advertising, continued to be the driving force for our overall impressive
performance in the first half of 2005. Sales from these key cities increased by 30% in the
first six months, and accounted for 53% of our total bus shelter advertising business, as
compared with 51% in the corresponding period last year. In Guangzhou, sales increased by
17%, average selling price increased by 10% and the occupancy rate stayed flat at 71%. In
Shanghai, sales rose by 21%, average selling price surged by 14% and the occupancy rate
dropped slightly to 73%. The decline in the average occupancy rate was largely due to the
addition of new panels in Shanghai in the first half of the year. The integration work of the
newly acquired advertising panels in Beijing has been smooth in the first half of 2005. If we
include contribution from the newly acquired panels in the first half of 2005, total sales
grew by 54%, average selling price and occupancy rate however dropped by 21% and to
59% respectively. As planned, it will take some time for the newly acquired panels to reach
the occupancy level of the existing network. If we exclude the contribution from these newly
acquired panels, sales in Beijing increased by 10%, average selling price in fact increased by
14%, and occupancy rate stayed at 79%.

CLEAR MEDIA INTERIM REPORT 2005
03
Performance in the mid-tier cities also showed a good rebound in the first half of 2005,
largely as a result of our strengthened sales efforts through new sales centres and enhanced
sales strategies. Sales increased by 22%, the average selling price increased by 19%, while
occupancy rate dropped slightly to 60% (1H2004: 62%). Sales from mid-tier cities
accounted for 47% of the Group’s total sales in the first half of the year (1H2004: 49%).
While we concentrated our efforts in the first half of the year to ensure the smooth
integration of the advertising panels acquired late last year, we further added 338 new panels
through organic buildup and acquisitions during the first six months of 2005, largely in
Shanghai and other key cities. During the period under review, on a time weighted basis, the
number of 12-sheet equivalent panels increased by 25% as compared with the same period
last year from 18,188 to 22,699.
Other Businesses
The non-core new formats of advertising, which include airport advertising, is an expansion
of the Group into other outdoor media opportunities and will remain a small proportion of
our operations. It contributed a total of HK$3.7 million during the period under review
(2004: HK$2.5 million), which continued to account for 1% of the Group’s sales in the
first half (1H2004: 1%).
Our advertising business in Terminal One of the Beijing Capital International Airport
started its operations late last year. We have outsourced our point-of-sales and unipoles
operations to third parties since the end of 2003.
Financial Review
Turnover
The Group’s turnover increased by 26% from HK$306.8 million from HK$243.7 million
during the period under review, largely due to the strong performance of our core bus
shelter advertising business in the first half of 2005. Our entire turnover was derived from
China.
EBITDA
Our total earnings before interest, tax, depreciation and amortization (EBITDA) increased
substantially by 28% to HK$123.4 million in 2005, from HK$96.3 million (restated) in the
same period of 2004. Clear Media’s EBITDA margin maintained at 40% as compared with
the corresponding period of last year. EBITDA for our core bus shelter advertising business
continued to perform well, showing an increase of 24% to HK$135.3 million as compared
to the same period of last year (1H2004: HK$108.8 million).
EBIT
Our total earnings before interest and tax (EBIT) improved by 37% from HK$40.3 million
to HK$55.2 million for the period under review. EBIT for the core bus shelter advertising
increased by 25% to HK$70.2 million as compared to the same period of last year (1H2004
(restated): HK$56 million).

04 MANAGEMENT DISCUSSION AND
ANALYSIS
Net Profit
Our net profit increased by 23% to HK$35.4 million for the six months ended 30 June
2005 as compared to HK$28.9 million (restated) of the corresponding period of last year.
The net profit margin maintained at 12% (1H2004: 12%) due to the increased interest
expense of HK$8.4 million accrued during the period under review for the convertible
bonds issued in the second half of last year.
Expenses
Direct operating costs, which includes electricity, rental, maintenance costs and sales and
cultural levy increased from HK$97.8 million last year to HK$125.1 million in the first half
of 2005, in terms of percentage of sales, it increased marginally to 41% (1H2004: 40%).
Rental increased slightly to 22% (1H2004: 20%), electricity costs remained flat at 5%
(1H2004: 5%), and maintenance costs reduced slightly to 5% (1H2004: 6%).
Sales, general and administrative expenses increased to HK$61.5 million in the first half of
the year as compared to HK$50.3 million (restated for the adoption of HKFRS2 ‘‘Sharebased
Payment’’) of the corresponding period of last year. This was largely due to the
increased number of our sales personnel and related costs.
The expansion of our bus shelter network, including the acquisitions in Beijing late last year
and our acquisitions in other cities this year have resulted in a higher charge for the
amortization of concession rights which increased by 23% to HK$ 65.2 million (1H2004:
HK$52.9 million).
Liquidity and Financial Resources
The Group financed its operations and investment activities with internally generated cash
flow, balanced with proceeds from our IPO and bank loans, as well as the issue of the
convertible bonds.
Cashflow
Net cash inflow generated from our operations in the interim period reached HK$107.8
million, as compared with HK$85.4 million in the same period of last year.
Cash from investment activities amounted to an outflow of approximately HK$93.6 million
(1H2004: outflow of HK$111 million). A total of HK$92.4 million was spent on building
and acquiring bus shelter advertising panels.
Improvements in the cash generated from operations during the first six months of 2005,
resulted in a positive free cash flow operations of HK$16.5 million (1H2004: negative free
cash flow of HK$19.7 million). Clear Media considers free cash flow (defined as EBITDA
(before share compensation cost) less cash outflow on capital expenditure, less income tax
and net interest expense) to be an important measure of a company’s ability to provide value
to shareholders. By presenting free cash flow, the Group intends to provide investors with a
better understanding of its ability to pay debts, make acquisitions and to grow organically.

CLEAR MEDIA INTERIM REPORT 2005
05
Concession Rights
All of the Group’s bus shelter concessions are granted by entities authorized by local
governmental agencies in China which have control over the construction and management
of bus shelters. Under these concessions, the Group assumes responsibility for the
construction and on-going maintenance of the bus shelters and pays annual fixed rental fees
to the entities authorized by local governmental agencies. In exchange, the Group has the
exclusive rights to sell advertising space at these bus shelters during the term of the
concessions.
The Group’s bus shelter concession contracts have initial terms of between five to twenty
years. As at 30 June 2005, the weighted average remaining term of the concession rights
currently held by the Group was approximately 9 years. In terms of renewal rights,
approximately 67% of the concession rights held by the Group, based on the number of bus
shelters, grant the Group the right of first refusal to renew the concession contracts provided
that the terms offered by the Group are no less favourable than the competing tenders. Some
of the concession contracts also allow the Group to extend our contracts before expiration.
During the period, we have successfully extended approximately 5% of our bus shelter
concessions, based on the number of bus shelters.
Accounts Receivable
The Group’s accounts receivable balance due from third parties was HK$216 million for the
period under review, as compared to HK$187 million as at 30 June 2004 and HK$195.2
million as at 31 December 2004. In absolute quantum, accounts receivable have increased by
roughly 16% over 30 June 2004. The increase is a result of higher sales generated during the
period.
Average accounts receivable outstanding days were 145 days, on a time-weighted basis, as at
30 June 2005, as compared to 136 days as at 30 June 2004 and 133 days as at 31 December
2004. The increase in days outstanding was due mainly to the timing of repayment by
certain major customers at the end of the period.
Prepayments, Deposits and Other Receivables
Total Prepayments, Deposits and Other Receivables as at 30 June 2005 were HK$203
million as compared to HK$105.4 million at 31 December 2004. The increase in
prepayments, deposits and other receivables was due mainly to deposit of HK$100 million
paid to the High Court in respect of the Advertasia litigation. This sum will remain at the
High Court until the result of the appeal to the Court. Please see the section on Contingent
Liabilities for more information on the Advertasia litigation.
Other Payables and Accruals
Total payables and accruals for the interim period of 2005 were HK$146.1 million as
compared to HK$202.1 million as at 31 December 2004. The decrease was due mainly to
the settlement of capital expenditure payable. It would be inappropriate to give turnover
days against sales as the payable is more closely related to capital expenditure incurred in
bus shelters.

06 MANAGEMENT DISCUSSION AND
ANALYSIS
Borrowings and Gearing
As at 30 June 2005, the Group had no outstanding bank loans (31 December 2004:
HK$37.2 million) as we repaid all bank loans during the period.
The debt to equity ratio of the Group, defined as a percentage of net interest bearing
borrowings over shareholders’ funds, was at 21% as at 30 June 2005 (31 December 2004:
23%). As of 30 June 2005, the Group’s total cash and bank balances amounted to
HK$306.7 million (31 December 2004: HK$337.2 million).
Capital Expenditure
To strengthen the Group’s leading position in the outdoor media sector in China, the
Group actively acquired concession rights to build bus shelters so as to expand its network.
For the six months ended 30 June 2005, HK$41.4 million was incurred on acquisition of
bus shelter concession rights and HK$2.1 million on fixed assets.
Share Capital and Equity
During the period under review, Clear Media’s issued and fully paid share capital remained
unchanged. Equity attributable to equity holders of the parent as at 30 June 2005 increased
by 3% to HK$1,433.1 million from HK$1,384.8 million as at 31 December 2004. The
Group’s other reserves and retained earnings amounted to HK$1,017.6 million and
HK$365.3 million respectively as at 30 June 2005 compared to HK$1,004.7 million
(restated) and HK$329.9 million (restated) respectively as at 31 December 2004.
Material Acquisitions and Disposals
During the period under review, there were no material acquisitions or disposals of any
subsidiary, associate or joint venture of the Group.
Exposure to Foreign Exchange Risk
Our only investment in China is the Group’s operating vehicle, the WHA joint venture,
which conducts business only within the PRC. Most of our turnover, capital investment and
expenses are denominated in Renminbi (‘‘RMB’’), except for interest payable, repayment of
foreign currency loans obtained to finance our operating vehicle’s operations and any
potential future dividend to be declared by our operating vehicle to shareholders. To date,
we have not experienced any difficulties in obtaining governmental approvals for foreign
exchange purposes when required. No financial instruments for hedging purposes were
issued in the six months ended 30 June 2005.
Regarding the recent RMB appreciation, as we mentioned above, our turnover and costs are
largely denominated in RMB, which will largely offset each other. However, as our net
profit is denominated in Hong Kong Dollars, there will be some translation gain as a result
of the RMB appreciation.

CLEAR MEDIA INTERIM REPORT 2005
07
Employment, Training and Development
As at 30 June 2005, the Group had a total of 393 employees, an increase of 25% over the
same period in 2004. The increase was largely in thesalesandmarketing staff in the second
half of 2004 as part of our business plan to strengthen our sales capabilities to cultivate new
clients and enhance existing client support. Total staff costs were approximately 10% of
turnover which was the same as the first half of 2004. Employees are remunerated based on
their performance, experience and the prevailing industry practices with compensation
policies and packages reviewed on a regular basis. Bonuses are linked to both the
performance of the Group and to individual performance as recognition of value creation.
Share options are also granted to senior management in an effort to align individual interests
with the Group’s.
Charge of Group Assets
There was no charge on the Group’s assets during the six months under review.
Capital Commitments
As at the balance sheet date for this interim period, the Group had capital commitments
contracted but not provided for in relation to the construction of bus shelters amounted to
HK$57.3 million, as compared to HK$35.2 million as of 31 December 2004.
Contingent Liabilities
On 10 August 1999, Advertasia Street Furniture Limited (‘‘Advertasia’’), an independent
third party, commenced an action against China Outdoor Media Investment (Hong Kong)
Company Limited (‘‘China Outdoor Media (HK)’’) (an indirect wholly-owned subsidiary of
Clear Media) in the High Court of Hong Kong pursuant to an agreement dated 21 April
1999 entered into by them for the sale of the entire issued share capital of four Hong Kong
private companies by Advertasia to China Outdoor Media (HK) for the sum of HK$68
million (the ‘‘Agreement’’). Advertasia alleged that China Outdoor Media (HK) had
wrongfully, and in breach of the Agreement, refused to purchase the shares held by
Advertasia in the four private companies and/orfailedtotenderapaymentofHK$50
million in relation to the Agreement. China Outdoor Media (HK) contended the claim on a
number of grounds, including, that a required condition precedent of the Agreement was
not met (in that the joint venture contracts attached to the Agreement were not valid) and
that a number of misrepresentations were made in respect of the four private companies.
China Outdoor Media (HK) also counterclaimed for damages for all reasonably incurred
costs and expenses in respect of the misrepresentation.
On 8 October 2004, the High Court, acting as a court of first instance, made an order in
favour of Advertasia. Clear Media had made an appeal against the judgement of the High
Court.
In January 2005, China Outdoor Media (HK) paid to the High Court the sum of HK$100
million in respect of the aforementioned Advertasia claim, and this amount of money will
remain at the High Court until the result of the appeal to the Court of Appeal. The Group
is still entitled to the deposit and will receive interest at market deposit rates during the

08 MANAGEMENT DISCUSSION AND
ANALYSIS
period, Moreover, under a Deed of Indemnity between Clear Media, Outdoor Media China
Inc.,HanZiJing,ClearChannelOutdoor,Inc.andChinaOutdoorMedia(HK).Clear
Media and China Outdoor Media (HK) will be fully indemnified against all damages,
penalties, liabilities, legal fees, enforcement costs and expenses incurred by them in respect
of this claim.
Outlook
Looking ahead, we expect the advertising market in China to grow at a healthy double-digit
rate. In view of our strong order books, we expect that our core bus shelter advertising
business will continue to perform well in the latter half of the year.
We will continue to integrate the new advertising panels acquired last year in Beijing, and
focus on enhancing their returns. While we have a clear leading position in key cities in
China, we will continue to improve our presence in these cities as well as the mid-tier cities
to provide a nationwide network to better serve our multinational and domestic clients to
generate better returns.
We will also start formulating multi-year Olympicssalespackagesforadvertiserstocapture
the advertising opportunities arising from the 2008 Olympics Games.

CONDENSED CONSOLIDATED
INCOME STATEMENT
09
For the six months ended
30 June
2005 2004
(Unaudited) (Unaudited)
(Restated)
Notes HK$’000 HK$’000
Turnover 306,823 243,723
Cost of sales (190,384) (150,641)
Gross profit 116,439 93,082
Other income and gains 3 5,491 1,963
Selling and distribution costs (27,998) (23,674)
Administrative expenses (36,553) (29,697)
Profit from operating activities 4 57,379 41,674
Finance costs 5 (9,344) (4,070)
Profit before tax 48,035 37,604
Tax 6 (8,646) (5,511)
Profit for the period 39,389 32,093
Attributable to:
Equity holders of the parent 35,366 28,863
Minority interests 4,023 3,230
39,389 32,093
Earnings per share for profit attributable to
the equity holders of the Group during
the period
—Basic 7 7.05 5.75
—Diluted 7 6.89 5.63
Dividend Per Share 8 Nil Nil

10 CONDENSED CONSOLIDATED
BALANCE SHEET
As of
30 June
2005
(Unaudited)
As of
31 December
2004
(Audited)
(Restated)
Notes HK$’000 HK$’000
ASSETS
Non-Current Assets
Fixed assets 104,161 95,002
Concession rights 1,051,845 1,087,039
Deferred tax assets 3,671 3,671
Other long term asset — 11,373
1,159,677 1,197,085
Current Assets
Accounts receivable 9 215,973 195,225
Prepayments, deposits and other receivables 10 202,985 105,405
Due from a related party 14(b) 19,560 19,807
Short term investments — 7,042
Pledged time deposits 1,515 94,376
Cash and cash equivalents 306,747 337,233
746,780 759,088
Total Assets 1,906,457 1,956,173
LIABILITIES
Current liabilities
Tax payable 14,323 8,710
Other payables and accruals 146,097 202,117
Deferred income 12,077 3,723
Interest-bearing bank borrowings — 37,229
172,497 251,779
Non-current liabilities
Convertible bonds 11 300,524 314,400
Total Liabilities 473,021 566,179
EQUITY
Share capital 12 50,161 50,161
Other reserves 13 1,017,638 1,004,680
Retained earnings 13 365,298 329,932
Equity attributable to equity holders of the parent 1,433,097 1,384,773
Minority interests 339 5,221
Total equity 1,433,436 1,389,994
Total equity and liabilities 1,906,457 1,956,173
Net current assets 574,283 507,309
Total assets less current liabilities 1,733,960 1,704,394

CONDENSED CONSOLIDATED SUMMARY
STATEMENT OF CHANGES IN EQUITY
11
For the six months ended
30 June
2005 2004
(Unaudited) (Unaudited)
(Restated)
HK$’000 HK$’000
Total equity at 1 January:
As previously reported as equity 1,384,773 1,288,373
As previously reported separately as minority interests 5,221 9,966
1,389,994 1,298,339
Prior period adjustments for the adoption of HKFRS 2
—Sharepremiumaccount 10,550 3,250
— Retained earnings (10,550) (3,250)
As restated, before opening adjustments 1,389,994 1,298,339
Opening adjustments for the adoption of HKASs 32 and 39 10,763 —
As restated, after prior period and opening adjustments 1,400,757 1,298,339
Changes in equity during the period:
Exchange differences on translating foreign operations (1,038) 3,504
Net (loss)/income recognised directly in equity (1,038) 3,504
Profit for the period 39,389 32,093
Total recognised income and expense for the period 38,351 35,597
Movement in current account with a minority shareholder (8,905) (7,185)
Employee share option scheme — Capital reserve 3,233 3,233
Total equity at 30 June 1,433,436 1,329,984
Total recognised income and expense for the period
attributable to:
Equity holders of the parent 34,328 32,367
Minority interests 4,023 3,230
38,351 35,597
Effects of prior period and opening adjustments
attributable to:
Equity holders of the parent 10,763 —
Minority interests — —
10,763 —

12 CONDENSED CONSOLIDATED CASH
FLOW STATEMENT
For the six months ended
30 June
2005 2004
(Unaudited) (Unaudited)
HK$’000 HK$’000
Cash generated from operations 111,026 96,393
Interest paid (189) (4,094)
Income taxes paid (3,033) (6,911)
Net cash from operating activities 107,804 85,388
Net cash used in investing activities (93,568) (111,039)
Net cash (used in)/generated from financing activities (44,528) 492
Decrease in cash and cash equivalents (30,292) (25,159)
Cash and cash equivalents at beginning of period 337,233 224,830
Effect of foreign exchange rate changes, net (194) 321
CASH AND CASH EQUIVALENTS AT END OF
PERIOD 306,747 199,992

NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
13
1. Accountant Policies
1.1 Changes in accounting policies
The unaudited condensed consolidated interim financial statements have been
prepared in accordance with Hong Kong Accounting Standard (‘‘HKAS’’) 34
‘‘Interim Financial Reporting’’ issued by the Hong Kong Institute of Certified
Public Accountants (‘‘HKICPA’’) and Appendix 16 of the Rules Governing the
Listing of Securities on The Stock Exchange of Hong Kong Limited.
The accounting policies and methods of computation used in the preparation
of this condensed consolidated interim financial statements are consistent with
those used in the annual financial statements for the year ended 31 December
2004 except that the Group has changed certain of its accounting policies
following its adoption of new and/or revised Hong Kong Financial Reporting
Standards and Hong Kong Accounting Standards (‘‘new HKFRS’’) which are
effective for accounting periods commencing on or after 1 January 2005.
This interim financial statements have been prepared in accordance with those
HKFRS standards and interpretations issued and effective as at the time of
preparing this information (July 2005). The HKFRS standards and
interpretations that will be applicable at 31 December 2005, including those
that will be applicable on an optional basis, are not known with certainty at
the time of preparing this interim financial information.
The changes to the Group’s accounting policies and the effect of adopting
these new policies are set out in note 2 below.
1.2 Effect of adopting new HKASs and HKFRS
In 2005, the Group adopted the new and/or revised standards of HKFRS
below, which are relevant to its operations. The 2004 comparatives have been
amended as required, in accordance with the relevant requirements.
HKAS 1
HKAS 7
HKAS 8
HKAS 10
HKAS 16
HKAS 21
HKAS 23
HKAS 24
HKAS 27
HKAS 31
HKAS 32
HKAS 33
HKAS 36
HKAS 39
HKAS-Int 29
HKFRS 2
Presentation of Financial Statements
Cash Flow Statements
Accounting Policies, Changes in Accounting Estimates and
Errors
Events after the Balance Sheet Date
Property, Plant and Equipment
The Effects of Changes in Foreign Exchange Rates
Borrowing Costs
Related Party Disclosures
Consolidated and Separate Financial Statements
Investments in Joint Ventures
Financial Instruments: Disclosures and Presentation
Earnings per Share
Impairment of Assets
Financial Instruments: Recognition and Measurement
Disclosure — Service Concession Arrangements
Share-based Payments

14 NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
1. Accountant Policies (continued)
1.2 Effect of adopting new HKASs and HKFRS (continued)
The adoption of new and/or revised HKASs 1, 7, 8, 10, 16, 21, 23, 24, 27,
31, 32, 33, 36, 39 and HKAS-Int 29 did not result in substantial changes to
the Group’s accounting policies. In summary:
— HKAS 1 has affected the presentation of minority interest, share of net
after-tax results of associates and other disclosures.
— HKASs 7, 8, 10, 16, 21, 23, 24, 27, 31, 33, 36 and HKAS-Int 29 had
no material effect on the Group’s policies.
— HKAS 21 had no material effect on the Group’s accounting policies.
The functional currency of each of the consolidated entities has been
re-evaluated based on the guidance to the revised standard. All the
Group entities have the same functional currency as the presentation
currency for respective entity financial statements.
— HKAS 24 has affected the identification of related parties and some
other related-party disclosures.
— The adoption of HKASs 32 and 39 has resulted in a change in the
accounting policy relating to the initial recognition and classification of
convertible bonds.
— The adoption of HKFRS 2 has resulted in a change in the accounting
policy for share-based payments. Until 31 December 2004, the
provision of share options to employees did not result in an expense
in the income statements. Effective on 1 January 2005, the Group
expenses the cost of share options in the income statement. As a
transitional provision, the cost of share options granted after 7
November 2002 and had not yet vested on 1 January 2005 was
expensed retrospectively in the income statement of the respective
periods.

CLEAR MEDIA INTERIM REPORT 2005
15
1. Accountant Policies (continued)
1.3 New Accounting Policies
Convertible bonds
In prior year, finance costs, including the premium payable upon the final
redemption of the convertible bonds, recognized in the profit and loss account
in respect of the convertible bonds were calculated so as to produce a constant
periodic rate of charge on the remaining balances of the convertible bonds for
each accounting period. The transaction costs incurred in connection with the
issue of convertible bonds were recognized separately from the convertible
bonds and recorded as other long term assets, amortised on a straight-line
basisoverthelifeofconvertiblebondsfromthedateoftheissueofthebonds
to their final redemption date.
On adoption of HKASs 32 and 39, the component of the convertible bonds
that exhibits characteristics of a liability is recognised as a liability in the
balance sheet, net of transaction costs. On the issue of the convertible bonds,
the fair value of the liability component is determined using a market rate for
an equivalent non-convertible bonds; and this amount is carried as a long term
liability on the amortised cost basis until extinguished on conversion or
redemption. The remainder of the proceeds is allocated to the conversion
option that is recognised and included in shareholders’ equity, net of
transaction costs. The carrying amount of the conversion option is not
remeasured in subsequent years.
Transaction costs are apportioned between the liability and equity components
of the convertible bonds based on the allocation of proceeds to the liability
and equity components when the instruments are first recognised.
ThechangeinaccountingpoliciesonadoptionofHKASs32and39isapplied
with effect from 1 January 2005. The opening balance sheet has been
reclassified with net decrease of other long term asset of HK$11.4 million,
long-term liabilities of HK$22.2 million, and increase of equity reserve by
10.8 million.
Share option schemes
In prior years, no compensation cost was recognised when employees
(including directors) were granted share options over shares in the Group.
With effect from 1 January 2005, in order to comply with HKFRS2 ‘‘SharebasedPayment’’,theGrouprecognizedthefairvalueofsuchshareoptionsas
an expense in the profit and loss account. A corresponding increase is
recognised in a capital reserve within equity.

16 NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
1. Accountant Policies (continued)
1.3 New Accounting Policies (continued)
Share option schemes (continued)
Where the employees are required to meet vesting conditions before they
become entitled to the options, the Group recognizes the fair value of the
options granted over the vesting period. If the share options granted vest
immediately, the Group recognizes the fair value in the period in which the
options are granted.
If an employee chooses to exercise his options, the related capital reserve is
transferred to share capital and share premium, together with the exercise
price. If the options lapse unexercised the related capital reserve is transferred
directed to retained earnings.
The new accounting policy has been applied retrospectively with comparatives
restated in accordance with HKFRS2, except that the Group has taken
advantage of the transitional provisions set out in paragraph 53 of HKFRS2
under which the new recognition and measurement policies have not been
applied to the following grants of options:
(i)
(ii)
all options granted to employees on or before 7 November 2002; and
all options granted to employees after 7 November 2002 but which had
vested before 1 January 2005.
The unamortised cost of share compensation of HK$10.6 million as at 31
December 2004 (30 June 2004: HK$6.5 million, 31 December 2003: HK$3.3
million) was adjusted to retained earnings. The staff costs for the first and
second halves of 2004 have been restated to recognize the share compensation
cost of HK$3.2 million and HK$4.1 million attributable to the periods
respectively. Share compensation cost for the first half of 2005 amounting to
HK$3.2 million was recognized through the profit and loss account.
2. Segment Information
Outdoor media sales is the only major business segment of the Group, and comprises
the display of advertisements on bus shelters, unipoles and point-of-sale. Accordingly,
no further business segment information is provided.
In determining the Group’s geographical segment, revenues and results are attributed
to the segments based on the location of the customers, and assets are attributable to
the segments based on the location of the assets. As the Group’s major operations and
markets are located in the PRC, no further geographical segment information is
provided.

CLEAR MEDIA INTERIM REPORT 2005
17
3. Other Income and Gains
For the six months ended
30 June
2005 2004
(Unaudited) (Unaudited)
HK$’000 HK$’000
Interest income 2,220 1,359
Realised gain on disposal of short term listed
investments 3,271 604
5,491 1,963
4. Profit from Operating Activities
Profit from operating activities was determined after charging/(crediting) the
following:
For the six months ended
30 June
2005 2004
(Unaudited)
(Unaudited) (Restated)
HK$’000 HK$’000
Provision for impairment of accounts receivable 7,902 2,451
Auditors’ remuneration 620 605
Depreciation of owned assets 3,050 3,093
Amortisation of concession rights and depreciation
of point-of-sale 65,240 52,876
Operating lease rentals on buildings 5,208 4,457
Staff costs (directors’ remuneration included) 31,316 25,012
Interest income (2,220) (1,359)
Realised gain on disposal of short term listed
investments (3,271) (604)

18 NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
5. Finance Costs
For the six months ended
30 June
2005 2004
(Unaudited) (Unaudited)
HK$’000 HK$’000
Interest on bank loans wholly repayable within five
years 924 4,070
Other finance costs:
Provision for convertible bonds redemption
premium 8,420 —
9,344 4,070
6. Tax
For the six months ended
30 June
2005 2004
(Unaudited) (Unaudited)
HK$’000 HK$’000
Group:
Current — Hong Kong profits tax — —
Current — PRC corporate income tax 8,646 5,511
Deferred — —
Total tax charge for the period 8,646 5,511
The Group provides for tax on the basis of their income for financial reporting
purposes, adjusted for income and expense items which are not assessable or
deductible for income tax purposes.
Hong Kong profits tax has not been provided as the Group did not generate any
assessable profits in Hong Kong during the current interim period.
According to the Income Tax Law of the PRC on Enterprises with Foreign
Investment and Foreign Enterprises, Hainan White Horse Advertising Media
Investment Company Limited (‘‘WHA Joint Venture’’), a subsidiary of the Company
establishedinHainanSpecialEconomicZone of the PRC, is subject to a corporate
income tax at a rate of 15% on its assessable profits arising in the PRC for the
current interim period.

CLEAR MEDIA INTERIM REPORT 2005
19
7. Earnings per Share
The calculation of basic earnings per share is based on the profit attributable to
equity holders of the parent of HK$35,366,000 (six months ended 30 June 2004
(restated): HK$28,863,000) and the weighted average of 501,608,500 (six months
ended 30 June 2004: 501,608,500) ordinary shares.
The calculation of diluted earnings per share is based on the profit attributable to
equity holders of the parent of HK$35,366,000 (six months ended 30 June 2004
(restated): HK$28,863,000). The weighted average number of ordinary shares used in
the calculation is the 501,608,500 (six months ended 30 June 2004: 501,608,500)
ordinary shares, as used in the basic earnings per share calculation; and the weighted
average of 11,594,646 (six months ended 30 June 2004: 11,003,463) ordinary shares
assumed to have been issued at no consideration on the deemed exercise of all share
options with dilutive effect during the period.
In the current interim period, the effect of the Group arising from the exercise of the
convertible bonds was anti-dilutive.
8. Dividend
The Board of Directors resolved not to pay interim dividend to shareholders in
respect of the six months ended 30 June 2005 (six months ended 30 June 2004: Nil).
9. Accounts Receivable
An aged analysis of the accounts receivable as at 30 June 2005, net of provision for
impairment of accounts receivable, is as follows:
30 June 31 December
2005 2004
(Unaudited) (Audited)
HK$’000 HK$’000
Current to 90 days 105,818 99,278
91–180 days 34,660 50,702
Over 180 days 75,495 45,245
Total 215,973 195,225
10. Prepayments, Deposits and Other Receivables
A deposit of HK$100 million had been paid to the High Court in respect of the
Advertasia litigation. This amount of money will remain at the High Court until the
result of the appeal to the Court (see page 7 Contingent Liabilities section).

20 NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
11. Convertible Bonds
On 25 October 2004, the Company issued HK$312,000,000 zero coupon convertible
bonds due 2009, which were listed on the Stock Exchange. Each bond will, at the
option of the holder, be convertible on and after 26 November 2004 up to and
including 28 September 2009 into fully paid ordinary shares with a par value of
HK$0.10 each of the Company at an initial conversion price of HK$9.585 per share.
Unless previously redeemed, converted or purchased and cancelled, the bonds will be
redeemed at 121.899% of their principal amount on 27 October 2009. The net
proceeds from the issue of the bonds will be used for general corporate and working
capital purposes, including financing possible strategic acquisitions.
The fair value of the liability component of the convertible bonds, net of transaction
costs, was determined, upon issuance, using the prevailing market interest rate for
similar debt without a conversion option of 4.8% and is carried as a long term
liability. The remainder of the proceeds was allocated to the conversion option that is
recognised and included in shareholders’ equity.
As at 30 June 2005, none of the convertible bonds had been converted into ordinary
shares of the Company.
12. Share Capital
30 June
2005
(Unaudited)
HK$’000
31 December
2004
(Audited)
HK$’000
Authorised:
700,000,000 ordinary shares of HK$0.10 each 70,000 70,000
Issued and fully paid:
501,608,500 ordinary shares of HK$0.10 each 50,161 50,161

CLEAR MEDIA INTERIM REPORT 2005
21
13. Reserves
Share
premium
account
(Unaudited)
HK$’000
Equity
component
of
convertible
bonds
(Unaudited)
HK$’000
Contributed
surplus
(Unaudited)
HK$’000
Exchange
fluctuation
reserve
(Unaudited)
HK$’000
Total other
reserves
(Unaudited)
HK$’000
Retained
earnings
(Unaudited)
HK$’000
At 1 January 2004
As previously
reported 644,427 — 351,007 (2,576) 992,858 245,354
Prior period
adjustments:
(note 1 and 2)
HKFRS 2
Employee
share option
schemes 3,250 — — — 3,250 (3,250)
As restated 647,677 — 351,007 (2,576) 996,108 242,104
Employee share
option schemes
(as restated) 3,233 — — — 3,233 —
Exchange
realignment — — — 3,504 3,504 —
Profit for the period
(as restated) — — — — — 28,863
Movement in
current account
with a minority
shareholder — — — — — —
At 30 June 2004
and 1 July 2004
(as restated) 650,910 — 351,007 928 1,002,845 270,967
Employee share
option schemes
(as restated) 4,067 — — — 4,067 —
Exchange
realignment — — — (2,232) (2,232) —
Profit for the period
(as restated) — — — — — 58,965
Movement in
current account
with a minority
shareholder — — — — — —
At 31 December
2004 (as
restated) 654,977 — 351,007 (1,304) 1,004,680 329,932

22 NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
13. Reserves (continued)
Share
premium
account
(Unaudited)
HK$’000
Equity
component
of
convertible
bonds
(Unaudited)
HK$’000
Contributed
surplus
(Unaudited)
HK$’000
Exchange
fluctuation
reserve
(Unaudited)
HK$’000
Total other
reserves
(Unaudited)
HK$’000
Retained
earnings
(Unaudited)
HK$’000
At 1 January 2005
As previously
reported 644,427 — 351,007 (1,304) 994,130 340,482
Prior period
adjustments:
(note 1 and 2)
HKFRS 2
Employee
share
option
schemes 10,550 — — — 10,550 (10,550)
As restated, before
opening
adjustments 654,977 — 351,007 (1,304) 1,004,680 329,932
Opening
adjustments:
(note 1 and 2)
HKASs 32
and 39
Convertible
bonds — 10,763 — — 10,763 —
As restated, after
opening
adjustments 654,977 10,763 351,007 (1,304) 1,015,443 329,932
Employee share
option schemes 3,233 — — — 3,233 —
Exchange
realignment — — — (1,038) (1,038) —
Profit for the
period — — — — — 35,366
Movement in
current account
with a minority
shareholder — — — — — —
At 30 June 2005 658,210 10,763 351,007 (2,342) 1,017,638 365,298

CLEAR MEDIA INTERIM REPORT 2005
23
14. Related Party Transactions
(a)
Transactions with related parties
For the six months
ended 30 June
2005 2004
(Unaudited) (Unaudited)
Notes HK$’000 HK$’000
Agency commission paid to
Guangdong White Horse
Advertising Company Limited
(‘‘GWH’’) (i) 1,625 306
Sales to GWH (ii) 9,209 1,734
Bus shelter maintenance and display
fees (iii) 3,830 4,019
Creative services fees payable to
GWH (iv) 1,412 1,412
(i)
(ii)
(iii)
The agency commission paid to GWH was based on the standard
percentage of gross rental revenue for outdoor advertising spaces
payable to other major third party agencies used by the Group. On 11
May 2004, the WHA Joint Venture entered into a framework
agreement for a fixed term of three years, which formalised the terms
and conditions in the advertising commission agreement between the
two parties. GWH is a related party of the Company because of one of
the directors of the Company, Mr. Han Zi Dian, is able to exercise
influence over the management and day-to-day operations as director
and general manager of GWH and controls the composition of a
majority of the board of directors of GWH from an indirect interest of
14.2% in GWH.
The sales to GWH were made according to published prices and
conditions similar to those offered to the major customers of the
Group.
Hainan White Horse Advertising Media Investment Company Limited
(‘‘WHA Joint Venture’’) has entered into various agreements for the
maintenance of bus shelters and the display of posters in the PRC with
theWhiteHorseCompanies.WhiteHorseCompaniesareconsideredto
be related parties of the Company due to the fact that one of the
directors of the Company, Mr. Han Zi Dian, can exercise influence
over the management of such White Horse Companies.

24 NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
14. Related Party Transactions (continued)
(a)
Transactions with related parties (continued)
In order to comply with the continuing connected transactions
provisions of the Listing Rules, the Maintenance Services Agreements
were terminated on 11 May 2004. On the same day, WHA Joint
Venture entered into new Maintenance Services Agreements with the
said companies on substantially the same terms as the old agreements
for a fixed term of three years.
(iv) WHA Joint Venture entered into a creative services agreement on 23
April2004withGWH,wherebyGWHagreedtoprovideposterdesign
service, the design of sales, marketing materials and company profiles
and other related creative services to the Group. These transactions
were entered into on terms no less favourable than those available to or
from independent third parties.
(b)
Outstanding balances with a related party
30 June 31 December
2005 2004
(Unaudited) (Audited)
HK$’000 HK$’000
Due from GWH 19,560 19,807
(c)
Compensation of key management personnel of the Group
30 June 30 June
2005 2004
(Unaudited) (Unaudited)
HK$’000 HK$’000
Short term employee benefits 5,553 4,664
Share-based payments 1,658 1,658
Total compensation paid to key
management personnel 7,211 6,322

SUPPLEMENTARY INFORMATION
25
Directors’ and Chief Executive’s Interests and Short Positions in
Shares
At 20 July 2005, the interests and short positions of the directors, the chief executive or
their associates in the share capital of the Company or its associated corporations (within the
meaning of Part XV of the Securities and Futures Ordinance (the ‘‘SFO’’)), as recorded in
the register required to be kept by the Company pursuant to Section 352 of the SFO, or as
otherwise notified to the Company and the Stock Exchange pursuant to the Model Code for
Securities Transactions by Directors of Listed Issuers, were as follows:
Long positions in ordinary shares of the Company as at 20 July 2005:
Name of director
Directly
beneficially
owned
Number of shares held, capacity and nature of interest
Through
spouse or
minor
children
Through
controlled
corporation
Beneficiary
of a trust
Total
Percentage
of the
Company’s
issued share
capital
Han Zi Jing — — 13,600,000 — 13,600,000 2.71%
Note:
The 13,600,000 shares are held by Outdoor Media China, Inc. (‘‘OMC’’), a company incorporated in
Western Samoa of Offshore Chambers.
As at 20 July 2005, Mr. Han Zi Jing held approximately 98% of the issued share capital of
Golden Profits Consultants Limited, which is the beneficial holder of 100% of the shares in
OMC. The effective interest of Mr. Han Zi Jing in OMC is therefore 98%.
Save as disclosed above, none of the directors and chief executive had registered an interest
or short position in the shares, underlying shares of the Company or any of its associated
corporations that was required to be recorded pursuant to Section 352 of the SFO, or as
otherwise notified to the Company and the Stock Exchange pursuant to the Model Code for
Securities Transactions by Directors of Listed Issuers.
Directors’ Rights to Acquire Shares
Apart from as disclosed under the headings ‘‘Directors’ and Chief Executive’s Interests and
Short Positions in Shares’’ above and in the ‘‘Share Option Schemes’’ below, at no time
during the interim period were rights to acquire benefits by means of the acquisition of
shares in the Company granted to any director, or their respective spouse or minor children,
or were any such rights exercised by them; nor was the Company, or any of its subsidiaries a
party to any arrangement to enable the directors to acquire such rights in any other body
corporate.

26 SUPPLEMENTARY INFORMATION
Share Option Schemes
The Company has in force a share option scheme (the ‘‘Scheme’’) for the purpose of
providing incentives and rewards to eligible participants who contribute to the Group’s
operations. Under the Scheme, the Directors may, at their discretion, invite any employees,
Directors or consultants of any company in the Group to acquire options. The Scheme
became effective on 28 November 2001 and, unless otherwise cancelled or amended, will
remain in force for seven years from that date.
The maximum number of shares in respect of which options may be granted under the
Scheme and under any other share option scheme of the Company pursuant to which
options may from time to time be granted to Directors, consultants, and/or employees of
any company in the Group, shall initially not exceed 10% of the relevant class of securities
of the Company in issue excluding, for this purpose, shares issued on the exercise of options
under the Scheme and any other share option scheme of the Company. Upon the grant of
options for shares up to 10% of the relevant class of securities of the Company and subject
to the approval of the shareholders of the Company in general meetings, the maximum
number of shares to be issued under this scheme when aggregated with securities to be
issued under any other share option scheme of the Group, may be increased by the Board of
Directors provided that the number of shares to be issued upon the exercise of all
outstanding options does not exceed 30% of the relevant class of securities in issue from
time to time.
No option may be granted to any person such that the total number of shares issued and to
be issued upon the exercise of options granted and to be granted to such person in any 12-
month period up to the date of the latest grant exceeds 1% of the issued share capital of the
Company from time to time.
An option may be exercised in accordance with the terms of the Scheme at any time during
the option period (and not more than seven years after the date of grant). The option period
will be determined by the Board of Directors and communicated to each grantee. The Board
of Directors may provide restrictions on the period during which the options may be
exercised. There are no performance targetswhichmustbeachievedbeforeanyofthe
options can be exercised except for the share options granted on 28 May 2003 and 19
November 2003. For the share options granted on 28 May 2003 and 19 November 2003,
the options will not become vested at the end of the third year after the grant date unless
the Company has achieved an average annual earnings per share growth of 5% each year for
the first three full financial years after the grant date. However, the Board of Directors
retains discretion to accelerate the vesting of fixed term options in the event that certain
performance targets are met.
The subscription price for the Company’s shares under the Scheme will be a price
determined by the Board of Directors and notified to each grantee. The subscription price
willbethehighestof:(i)thenominalvalueofashare;(ii)theclosingpriceofthesharesas
stated in the Stock Exchange’s daily quotationsheetonthedateofgrant,whichmustbea
business day; and (iii) the average closing price of the shares as stated in the Stock
Exchange’s daily quotation sheets for the five business days immediately preceding the date
of grant. An option shall be deemed to have been granted and accepted by an eligible

CLEAR MEDIA INTERIM REPORT 2005
27
participant (as defined in the Scheme) and to have taken effect when the acceptance form as
described in the Scheme is completed, signed andreturnedbythegranteewitharemittance
in favour of the Company of HK$1.00 by way of consideration for the grant.
As at 30 June 2005, the number of shares issuable under share options granted under the
Scheme was 24,016,000, which represented approximately 4.8% of the Company’s shares in
issueasatthatdate.Themaximumnumberofshares issuable under share options may be
granted to each eligible participant in the Scheme within any 12-month period up to the
date of the latest grant, is limited to 1% of the shares of the Company in issue at any time.
Any further grant of share options in excess of this limit is subject to shareholders’ approval
in a general meeting.
On 28 November 2001, the Company also adopted a pre-IPO share option scheme (the
‘‘Pre-IPO share option scheme’’) conditionally as described in the Company’s prospectus
dated 10 December 2001. The principal terms of the Pre-IPO share option scheme are
substantially the same as the terms of the Scheme except that:
(a) Employees, Directors and consultants of the Group who have contributed
substantially to the growth of the Group and to the initial public offering or fulltime
employees and directors of the Group are eligible to participate in the Pre-IPO
share option scheme;
(b)
(c)
The subscription price for the shares under the Pre-IPO share option scheme shall be
equal to the offer price;
The Pre-IPO share option scheme will remain in force for a period commencing on
thedateonwhichthePre-IPOshareoptionschemeisconditionallyadoptedbythe
shareholders of the Company and ending on the day immediately prior to 19
December 2001, after which period no further options will be granted but in all
other respects the provisions of the Pre-IPO share option scheme shall remain in full
force and effect.
As at 30 June 2005, the number of shares issuable under share options granted under the
Pre-IPO share option scheme was 18,034,000, which represented approximately 3.6% of the
Company’ssharesinissueasatthatdate.The maximum number of shares issuable under
share options to each eligible participant in the Pre-IPO share option scheme within any 12-
month period is limited to 1% of the shares of the Company in issue at any time. Any
further grant of share options in excess of this limit is subject to shareholders’ approval in a
general meeting.

28 SUPPLEMENTARY INFORMATION
The share options granted under the Pre-IPO share option scheme and the Scheme at the
beginning of the year and during the period for a consideration of HK$1.00 per grant are
set out below:
Number of share options
Price of
the Company’s shares***
At the
Type of share
beginning
Granted
Exercised
Lapsed
Cancelled
At the end Date of grant
Exercise
At grant
At exercise
Name or category of
option
of the
during the
during the
during the
during the
of the
of share
price per
date of
date of
participant
scheme
period
period
period
period
period
period
options* Exercise period
share**
options
options
HK$ HK$ HK$
Director
Steven Yung
Pre-IPO option 2,500,000 — — — — 2,500,000 28/11/2001 29/11/2004 to
scheme
28/11/2008
The Scheme 1,250,000 — — — — 1,250,000 29/06/2002 30/6/2005 to
29/06/2009
The Scheme 1,400,000 — — — — 1,400,000 28/05/2003 29/05/2006 to
27/05/2010
5.89 — —
5.51 5.3 —
3.51 3.5 —
5,150,000 — — — — 5,150,000
Peter Cosgrove
Pre-IPO option 1,250,000 — — — — 1,215,000 28/11/2001 29/11/2004 to
scheme
28/11/2008
The Scheme 625,000 — — — — 625,000 29/06/2002 30/6/2005 to
29/06/2009
The Scheme 704,000 — — — — 704,000 28/05/2003 29/05/2006 to
27/05/2010
5.89 — —
5.51 5.3 —
3.51 3.5 —
2,579,000 — — — — 2,579,000
Han Zi Jing
Pre-IPO option 3,334,000 — — — — 3,334,000 28/11/2001 29/11/2004 to
scheme
28/11/2008
The Scheme 1,666,000 — — — — 1,666,000 29/06/2002 30/06/2005 to
29/06/2009
The Scheme 1,900,000 — — — — 1,900,000 28/05/2003 29/05/2006 to
27/05/2010
The Scheme 1,000,000 — — — — 1,000,000 19/11/2003 20/11/2006 to
19/11/2010
5.89 — —
5.51 5.3 —
3.51 3.5 —
5.35 5.35 —
7,900,000 — — — — 7,900,000
Teo Hong Kiong
Pre-IPO option 1,200,000 — — — — 1,200,000 28/11/2001 29/11/2004 to
scheme
28/11/2008
The Scheme 600,000 — — — — 600,000 29/06/2002 30/6/2005 to
29/06/2009
The Scheme 670,000 — — — — 670,000 28/05/2003 29/05/2006 to
27/05/2010
5.89 — —
5.51 5.3 —
3.51 3.5 —
2,470,000 — — — — 2,470,000
Zou Nan Feng
Pre-IPO option 800,000 — — — — 800,000 28/11/2001 29/11/2004 to
scheme
28/11/2008
The Scheme 400,000 — — — — 400,000 29/06/2002 30/6/2005 to
29/06/2009
The Scheme 666,000 — — — — 666,000 28/05/2003 29/05/2006 to
27/05/2010
5.89 — —
5.51 5.3 —
3.51 3.5 —
1,866,000 — — — — 1,866,000
Zhang Huai Jun
Pre-IPO option 350,000 — — — — 350,000 28/11/2001 29/11/2004 to
scheme
28/11/2008
The Scheme 175,000 — — — — 175,000 29/06/2002 30/6/2005 to
29/06/2009
The Scheme 666,000 — — — — 666,000 28/05/2003 29/05/2006 to
27/05/2010
5.89 — —
5.51 5.3 —
3.51 3.5 —
1,191,000 — — — — 1,191,000
Others
Members of senior
management and
other employees of
the Group
Pre-IPO option 8,600,000 — — — — 8,600,000 28/11/2001 29/11/2004 to
scheme
28/11/2008
The Scheme 4,300,000 — — — — 4,300,000 29/06/2002 30/06/2005 to
29/06/2009
The Scheme 5,994,000 — — — — 5,994,000 28/05/2003 29/05/2006 to
27/05/2010
The Scheme 2,000,000 — — — — 2,000,000 19/11/2003 20/11/2006 to
19/11/2010
5.89 — —
5.51 5.3 —
3.51 3.5 —
5.35 5.35 —
20,894,000 — — — — 20,894,000
In aggregate
Pre-IPO option 18,034,000 — — — — 18,034,000
scheme
The Scheme 9,016,000 — — — — 9,016,000
The Scheme 12,000,000 — — — — 12,000,000
The Scheme 3,000,000 — — — — 3,000,000
42,050,000 — — — — 42,050,000

CLEAR MEDIA INTERIM REPORT 2005
29
* The vesting period of the share options is from the date of the grant until the commencement of
the exercise period except:
(i)
(ii)
For the share options granted under the Pre-IPO share option scheme, 33.3% of the
options granted will vest at the end of the first full financial year (the ‘‘Period’’) after the
grant date if the Company achieves a compounded 20% growth in its earnings before
interest, tax, depreciation, and amortisation (the ‘‘EBITDA’’) during the Period. The
remaining 66.7% of the options granted will vest at the end of the second full financial
year after the grant date if the Company achieves a compounded annual growth rate of
20% in its EBITDA during the first two full financial years after the grant date.
For the share options granted on 28 May 2003 and 19 November 2003, the options will
not become vested at the end of the third year after the grant date unless the Company
has achieved an average annual earnings per share growth of 5% each year for the first
three full financial years after the grant date.
** The exercise price of the share options is subject to adjustment in the case of rights or bonus
issues, or other similar changes in the Company’s share capital.
*** The price of the Company’s shares disclosed as at the date of the grant of the share options is the
Stock Exchange closing price on the trading day immediately prior to the date of the grant of the
options. The price of the Company’s shares disclosed as at the date of the exercise of the share
options is the weighted average of the Stock Exchange closing prices over all of the exercises of
options within the disclosure line.
The share option expenses recognised in the condensed consolidated income statement for
employee services received during the period is HK$3,233,000 (six months ended 30 June
2004: HK$3,233,000 (restated)
During the interim period, no share options were granted by the Company.
Apart from the foregoing, at no time during the interim period ended 30 June 2005 was the
Company, or any of its subsidiaries, a party to any arrangement to enable the directors or
any of their respective spouse or minor children to acquire benefits by means of the
acquisition of shares in or debentures of the Company or any other body corporate.
Substantial Shareholder
The Company was informed on 19 July 2005 by Clear Channel Communications, Inc
(CCU) through its non-wholly owned subsidiary CCKNR, has increased its shareholdings in
Clear Media through the purchase of shares in the market in April and July 2005.
Subsequent to the share purchase, CCU’s stake in Clear Media increased from 48.1% to
50.02%.
Corporate Governance
The Board is committed to the principles of corporate governance for a transparent,
responsible and value-driven management that is focused on enhancing shareholders’ value.
In order to reinforce independence, accountability and responsibility, the role of the Clear

30 SUPPLEMENTARY INFORMATION
Media’s Chairman is separate from that of Clear Media’s CEO. The Board has established
an Audit Committee, a Remuneration Committee and a Nomination Committee with
defined terms of reference.
Corporate governance practices adopted by the Group during the six month period ended 30
June 2005 are in line with the code provisions set out in Code on Corporate Governance
Practices, Appendix 14 to the Rules Governing the Listing of Securities on the Stock
Exchange of Hong Kong Limited (the ‘‘Listing Rules’’).
Audit Committee
The Audit Committee is comprised of a majority of independent non-executive directors
with substantial expertise in finance as well as relevant market experience. The Committee
has reviewed the audit findings, the accounting policies and practices adopted by the Group,
and has also discussed and approved auditing, internal controls, risk management and
financial reporting matters, including the unaudited interim financial statements for the six
month period ended 30 June 2005.
Compliance with the Code of Corporate Governance Practices
None of the Directors are aware of any information that would reasonably indicate that
Clear Media is not, or was not for any part of the six month period ended 30 June 2005, in
compliance with the code provisions set out in the Code on Corporate Governance
Practices, Appendix 14 to the Listing Rules.
Compliance with Model Code of Appendix 10 of the Listing Rules
The Directors confirm that the Model Code regarding directors’ securities transactions has
been adopted, and all Directors have confirmed their compliance during the six months
period under review.
Purchase, Sales and Redemption of the Company’s Listed Securities
Clear Media has not redeemed any of its listed securities during this interim period. Neither
the Clear Media nor any of its subsidiaries has purchased or sold any of the listed securities
during the said period.
Investor Relations and Communications
The Group has maintained communications with institutional investors and analysts through
regular meetings, investment conferences and electronic newsletters. The Group also
maintains an investor relations website (www.clear-media.net) to disseminate information to
investors and shareholders on a timely basis.

CLEAR MEDIA INTERIM REPORT 2005
31
Publication of Detailed Results Announcement on the Stock
Exchange’s Website
Clear Media will submit to The Stock Exchange of Hong Kong Limited (‘‘HKEX’’) on or
before 15 September 2005 a compact disc containing all the information required by
paragraphs 46(1) to (9) (both paragraphs inclusive) of Appendix 16 to the Listing Rules for
uploading onto HKEX’s website (www.hkex.com.hk).
1 September 2005
By Order of the Board
Clear Media Limited
Steven Yung
Chairman

32 FACTSHEET AT A GLANCE
Shareholder Information with 10% or more shareholding
as at 20 July 2005
— Clear Channel Outdoor, Inc. 50.02%
— The Public 37.35%
— The Capital Group Companies, Inc. 12.63%
Nominal Value:
Listing:
HK$0.1 per share
Main Board of
The Stock Exchange of
Hong Kong Limited
Listing Date: 19 December 2001
Ordinary Shares:
— Shares outstanding as at 30 June 2005 501,608,500 shares
Market Capitalization:
— as at HK$6.75 per share (based on closing price on 30
June 2005)
HK$3.4 billion
Stock Code:
— Hong Kong Stock Exchange 100
— Reuters 0100.HK
— Bloomberg 100 HK
Financial Year End:
31 December

CORPORATE INFORMATION
33
Business Area
Directors
Company Secretary
: Outdoor Media
: Steven Yung
Han Zi Jing
Teo Hong Kiong
Zou Nan Feng
Roger Parry (Non-Executive Director)
Peter Cosgrove (Non-Executive Director)
Mark Mays (Non-Executive Director)
Han Zi Dian (Non-Executive Director)
Jonathan Bevan (Non-Executive Director)
Desmond Murray (Independent Non-Executive Director)
Leonie Ki Man Fung (Independent Non-Executive Director)
Wang Shou Zhi (Independent Non-Executive Director)
Zhang Huai Jun (alternate to Han Zi Dian)
Lenna Chin (alternate to Mark Mays)
Tim Maunder (alternate to Roger Parry)
: Gary Ng
Head Office : Room 3205
32/F Windsor House
311 Gloucester Road
Causeway Bay
Hong Kong
Registered Office
Legal Advisors
: Clarendon House
2 Church Street
Hamilton HM 11
Bermuda
: Hong Kong and United States Law
Freshfields Bruckhaus Deringer
PRC Law
King & Wood PRC Lawyers
Bermuda Law
Conyers Dill & Pearman
Auditors
Principal Banker
: Ernst & Young
: Shanghai Pudong Development Bank

34 CORPORATE INFORMATION
Principal Share Registrar
Hong Kong Share Registrar
Authorized Representatives
Investor Relations Contact
PR Consultant
Corporate Website
: Butterfield Corporate Services Limited
11 Rosebank Centre
Bermudiana Road
Hamilton Bermuda
: Tengis Limited
G/F Bank of East Asia
Harbour View Center
56 Gloucester Road
Wanchai
Hong Kong
: Steven Yung
Gary Ng
: Gary Ng
: iPR ASIA LTD
: www.clear-media.net