China Mass Media (CMMCY) 6-K Current report (foreign)

UNITED STATESSECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

______________

FORM 6-K

______________

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 ofThe Securities Exchange Act of 1934

For the Month of December, 2009

Commission File Number 333-152305

CHINA MASS MEDIA INTERNATIONAL ADVERTISING CORP.

6th Floor, Tower B, Corporate Square, 35 Finance Street

Xicheng District, Beijing 100032

People’s Republic of China

(86-10) 8809-1099
(Address of Principal Executive Offices)

(Indicate by check mark whether the registrant files or will file annual

reports under cover of Form 20-F or Form 40-F.)

Form 20-F x  Form 40-F o

(Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(1).)

Yes o  No x

(Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(7).)

Yes o  No x

(Indicate by check mark whether the registrant by furnishing the

information contained in this Form is also thereby furnishing the

information to the Commission pursuant to Rule 12g3-2(b) under the

Securities Exchange Act of 1934.)

Yes o  No x

(If "Yes" is marked, indicate below the file number assigned to the

registrant in connection with Rule 12g3-2(b): 82- )

CHINA MASS MEDIA REPORTS THIRD QUARTER 2009

UNAUDITED FINANCIAL RESULTS

BEIJING, CHINA -- (December 7, 2009) -- China Mass Media Corp. (NYSE: CMM), a leading media company in China, today announced its unaudited financial results for the third quarter ended September 30, 2009.

Third Quarter 2009 Highlights1

§   Total net revenues were RMB 80.70 million ($ 11.82 million), an increase of 10.4% from the third quarter 2008 and a sequential increase of 4.3% from the second quarter 2009.

§   Operating income was RMB 3.66 million ($ 0.54 million), a decrease of 80.4% from RMB 18.62 million in the third quarter of 2008, and a sequential increase compared with an operating loss of RMB 3.13 million in the second quarter 2009.

§   Net income was RMB 4.04 million ($ 0.59 million), a decrease of 76.8% from the third quarter of 2008 and a sequential increase of 988.1% from the second quarter of 2009.

§   During the third quarter 2009, cash flow used in operating activities was RMB 396.65 million ($58.11 million), cash flow used in investing activities was RMB 49.49 million ($7.25 million), and there was no cash flow from financing activities, so cash and cash equivalents decreased by RMB 446.34 million ($65.39) million during the third quarter.

Mr. Shengcheng Wang, Chairman and Chief Executive Officer of China Mass Media, said, “The third quarter was extremely busy and full of changes. We embraced the 60th anniversary of the People’s Republic of China along with the resumption of higher growth rates in our economy. We were very pleased to see robust demand in the advertising market during the quarter, especially in September. That strength has continued into the fourth quarter of the year.

The marketing adjustments we put in place have paid off.  Our “Day Time Advertising Package” on CCTV sold well, as did sales of our advertising time slots on CCTV’s “Television Guide” channel, and on CCTV-4 programs, largely due to our winning a large number of new clients.

1 The U.S. dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader.  The conversion of Renminbi (RMB) into US$ in this release is based on the exchange rate set forth in the statistical release issued by the Federal Reserve Board on September 30, 2009, which was RMB6.8262 to US$1.00.  The percentages stated are calculated based on RMB.

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CCTV’s prime time advertisement auction and bidding session for 2010, which was held in November 2009, raised nearly RMB 10.97 billion, an 18.5 percent increase from RMB 9.26 billion in 2009. While we are confident in the economic outlook for 2010, the intense bidding reflected China's rebounding economy and the huge demand in the advertising market. Several of our clients participated in and won ideal time slots through our services.

CCTV also initiated their open bidding process to sell advertising time slots to advertising agency companies using a new wholesale contracting system. We won the “Periodic China News Package” on CCTV-4 at a reasonable price. Our media resources in 2010, therefore, include our “Day Time Advertising Package”, the “Periodic China News Package,” advertising time slots on CCTV’s “Television Guide,” and public service announcement sponsorship opportunities.

Starting in 2009, CCTV initiated a series of reforms to improve its advertising operations. As a part of the reform, CCTV will bring their sales and marketing efforts in-house for the Chinese New Year Gala program, for which we worked as the exclusive advertising agent for several years. We will continue to provide support to CCTV for this event, but we do not expect it to be a significant source of revenue in 2010.

We plan to continue to further strengthen our production and client services. As brand advisors for our various clients, we will expand our integrated services to provide one-stop comprehensive solutions for our clients. By leveraging our unique public service announcement program and advertising platform on CCTV, we believe we can further improve our production and public services advertising, which can help our clients increase the awareness of public welfare and social responsibilities from a unique angle.

Right after the CCTV auction, we started the pre-sales of our 2010 media resources to win a large share of our clients’ 2010 advertising budgets. We expect to continue to grow through this kind of organic growth and possibly through careful, logical, and financially prudent acquisitions.”

Mr. Eric Cheung, Chief Financial Officer of China Mass Media, added, “Effective implementation of our expanded marketing strategy led to the strong sequential increase in revenues from advertising agency services. We are beginning to see strong demand for 2010, and expect to benefit from the strong growth in China’s expanding economy.  We believe that our strengthened sales force and market position will allow us to take advantage of the growth in advertising demand.”

Third Quarter 2009 Financial Results

Revenues from Advertising Agency Services were RMB 79.83 million ($ 11.7 million) in the

third quarter of 2009, an increase of 13.0% from RMB 70.66 million in the third quarter of 2008, and a sequential increase of 29.1% from RMB 61.84 million in the second quarter of 2009.

In the third quarter 2009, advertising agency services revenues increased 13.0% from the third quarter of 2008, primarily due to securing new advertisers and producing higher revenues from advertisements on “Day Time Advertising Package” and on “Television Guide”. In August 2008, the “Day Time Advertising Package” and “Television Guide” programs were suspended for 16 days due to live broadcasting of the Olympic Games by CCTV, which led to a decline in revenues generated from these two programs in the third quarter 2008.

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Comparing sequentially with the second quarter 2009, advertising agency services revenues increased 29.1% in the third quarter 2009 due to securing more clients’ advertising expenditures and producing higher revenues from advertisements on “Day Time Advertising Package”, on “Television Guide,” on “First News” and on CCTV-4 programs. With higher growth rates resuming in the Chinese economy and the coming traditional peak advertising seasons in China for September and October, many advertisers were willing to increase their budgets to improve the market awareness of their products. Through our enlarged sales team, the company has been able to secure more customers across various industry sectors, including household appliances, consumer goods, and pharmaceutical products.

Revenues from special events services:   There were no special events in the third quarter 2009 or in the third quarter 2008, so no revenues occurred in those quarters.   The RMB 14.60 million ($ 2.14 million) in special events services revenues in the second quarter 2009 related to revenues that were recognized   from assisting CCTV to sell and market advertisements during the Beijing Olympic Games in 2008.

Revenues from production and sponsorship services were RMB 2.83 million ($ 0.41 million) in the third quarter of 2009, a decrease of 45.3% from RMB 5.18 million in the third quarter of 2008, primarily due to lower revenues from public service announcements sponsorship services. Sequentially, revenues from production and sponsorship services in the third quarter 2009 decreased 1.7% from RMB 2.88 million in the second quarter of 2009.

Operating costs and expenses

Cost of revenues was RMB 65.12 million ($ 9.54 million) in the third quarter 2009, an increase of 36.4% from RMB 47.73 million in the third quarter 2008, primarily due to higher media resource underwriting costs for CCTV-4.  The cost of revenues sequentially increased 1.2% from RMB 64.38 million in the second quarter 2009.

Sales and marketing expenses were RMB 3.90 million ($ 0.57 million) in the third quarter of 2009, an increase of 96.1% from RMB 1.99 million in the third quarter of 2008, due primarily to increased salaries and other compensation for additional sales employees. Sales and marketing expenses decreased sequentially by 25.6% from RMB 5.24 million ($ 0.77 million) in the second quarter 2009, mainly due to the absence in the third quarter 2009 of a distribution of commission and bonus related to the special event revenue recorded in the second quarter 2009.

General and administrative expenses were RMB 8.02 million ($ 1.17 million) in the third quarter of 2009, an increase of 69.2% from RMB 4.74 million in the third quarter of 2008, mainly due to additional expenses incurred as a U.S. publicly listed company, including legal and independent auditors’ fees and the cost of compliance with the Sarbanes-Oxley Act of 2002, and higher salaries.

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General and administrative expenses decreased sequentially 26.3% in the third quarter 2009 from RMB 10.89 million in the second quarter 2009 mainly due to a decrease in the provision for bad debt from RMB 3.5 million to RMB 0.4 million.

Operating income, as a result of the foregoing factors, was RMB 3.66 million ($ 0.54 million) in the third quarter 2009, down 80.4% compared with operating income of RMB 18.62 million in the third quarter of 2008. Operating income sequentially increased to RMB 3.66 million in the third quarter 2009 from an operating loss of RMB 3.13 million in the second quarter of 2009. The operating margin was 4.53% in the third quarter 2009, a negative 4.05% in the second quarter 2009, and 25.48% in the third quarter 2008.

Net income was RMB 4.04 million ($ 0.60 million) in the third quarter 2009, a decrease of 76.8% from RMB 17.41 million in the third quarter 2008 and an sequential increase of 988.1% from RMB0.37 million in the second quarter 2009. Net profit margin was 5.01% in the third quarter 2009, 0.48% in the second quarter 2009, and 23.83% in the third quarter 2008.

Basic and diluted earnings per ADS for the third quarter of 2009 was RMB 0.17 ($ 0.02) per ADS, compared with RMB 0.81 per ADS in the third quarter 2008. The basic and diluted earnings per ADS in second quarter 2009 was RMB 0.02 per ADS. Each ADS represents 30 ordinary shares of the company.

Cash and cash equivalents

As of September 30, 2009, the Company had cash and cash equivalents of RMB 680.6 million ($99.7 million) compared with RMB 1,126.9 million at June 30, 2009. The decrease in cash and cash equivalents was mainly due to cash used in operating activities and the purchase of certain investment products issued by state-owned banks classified as short-term investments.

Financial Outlook

The Company currently expects to generate total net revenues of RMB 95 million to RMB 105 million for the fourth quarter of 2009. The range results in a potential increase of 22.6% to 35.5% as compared with the fourth quarter of 2008 and a potential sequential increase of 17.7% to 30.1% compared with the third quarter of 2009. This forecast reflects the company’s current and preliminary view, which is subject to change.

Conference Call

China Mass Media will host a conference call and live webcast at 8:00 a.m. Eastern Time (EST) (9:00 p.m., Beijing/Hong Kong time) on Monday, Dec 7, 2009, to discuss the third quarter 2009 results and answer questions.

The dial-in details for the live conference call are as follows:

U.S. toll free number:    +1 866 730 5768

China toll free number (Telecom):  +10 800 152 1490

China toll free number (Unicom):  +10 800 130 0399

Hong Kong toll free number: +800 96 3844

Passcode: CMM

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A live webcast of the conference call will be available on the investor relations section of the Company’s website at: http://www.chinammia.com.

A telephone replay of the call will be available after the conclusion of the conference call.  The dial-in details for the replay are as follows:

U.S. toll free number:  +1 888 286 8010

International dial-in number:  +1 617 801 6888

Passcode:    36387039

Safe Harbor Statement

This news release includes statements that may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Act of 1934 as amended, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements, which are based on certain assumptions and future plans, strategies, and expectations of the Company, are generally identified by the use of words such as believe, expect, intend, anticipate, estimate, or project or similar words.

The fourth quarter and year 2009 outlook contains forward-looking statements, based on management's current plans, estimates, and expectations, are not a guarantee of future performance.

The forward-looking statements involve risks and uncertainties. A number of factors could cause actual results to differ materially from forward-looking statements. Additional information concerning these factors is contained in the Securities and Exchange Commission filings of the company at www.sec.gov. China Mass Media does not undertake any obligation to update any forward-looking statements, except as required by law.

About China Mass Media Corp.

As a leading television advertising company in China, the Company provides a full range of advertising services, including advertising agency services, creative production services, public service announcement sponsorship services, and other value added services. The Company currently offers more than 500 minutes of advertising time slots on CCTV Channels 1, 2, 4, E and F. CCTV is the largest television network in China. Since 2003, the Company has produced more than 300 advertisements and has won a number of prestigious awards in China.

China Mass Media’s website is located at http://www.chinammia.com

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For further information, please contact:

China Mass Media Corp. Julie Sun, +86-10-8809 1050 Vice President of Corporate Development juliesun@chinammia.com
	or
Christensen Hong Kong: Roger Hu, +852 2117 0861 rhu@ChristensenIR.com		United States: Linda Bergkamp, +1-480-614-3004 lbergkamp@christensenIR.com

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CHINA MASS MEDIA CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	THREE MONTHS ENDED,
	September 30, 2008			June 30, 2009			September 30, 2009			September 30, 2009
	RMB			RMB			RMB			US$
Revenues:
Advertising agency services		70,661,244			61,838,249			79,826,310			11,694,107
Special events services		-			14,600,000			-			-
Advertisement production and sponsorship services		5,179,717			2,879,443			2,831,067			414,735
Total revenues		75,840,961			79,317,692			82,657,377			12,108,842
Less: Business tax		(2,763,372	)		(1,942,304	)		(1,959,112	)		(286,999	)
Total net revenues		73,077,589			77,375,388			80,698,265			11,821,843
Operating costs and expenses:
Cost of revenues		(47,733,904	)		(64,383,133	)	（65,123,775)				(9,540,268	)
Sales and marketing expenses		(1,987,275	)		(5,237,281	)		(3,897,454	)		(570,955	)
General and administrative expenses		(4,738,804	)		(10,887,394	)		(8,020,381	)		(1,174,941	)
Total operating costs and expenses		(54,459,983	)		(80,507,808	)		(77,041,610	)		(11,286,164	)
Operating income/ (loss)		18,617,606			(3,132,420	)		3,656,655			535,679
Interest and investment income		3,671,955			3,345,142			1,647,683			241,376
Other income/ (expense), net		(1,799,274	)		228,942			(189,169	)		(27,712	)
Income before tax		20,490,287			441,664			5,115,169			749,343
Income tax expense		(3,076,395	)		(70,401	)		(1,075,459	)		(157,549	)
Net income		17,413,892			371,263			4,039,710			591,794
Net income allocated to participating preferred shares		(1,160,674	)		-			-			-
Net income available to ordinary shareholders		16,253,218			371,263			4,039,710			591,795
Earnings per ordinary share, basic and diluted		0.03			0.001			0.006			0.001
Earnings per ADS, basic and diluted		0.81			0.02			0.17			0.02
Shares used in calculating earnings per ordinary share, basic and diluted		600,732,337			716,375,000			716,375,000			716,375,000
Shares used in calculating earnings per ADS, basic and diluted		20,024,411			23,879,167			23,879,167			23,879,167

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CHINA MASS MEDIA CORP.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

	December 31, 2008		September 30, 2009		September 30, 2009
	RMB		RMB		US$
Assets
Current assets:
Cash and cash equivalents		566,889,261		680,597,686		99,703,742
Short-term investments		500,000,000		80,000,000		11,719,551
Notes receivable		-		2,392,460		350,482
Accounts receivable, net of allowance for doubtful accounts of RMB 4,319,808 and RMB 8,303,818 as of December 31, 2008 and September 30, 2009		14,367,193		720,677		105,575
Prepaid expenses and other current assets		68,301,523		46,567,929		6,821,940
Deposit paid to a related party		1,000,000		1,000,000		146,494
Total current assets		1,150,557,977		811,278,752		118,847,784
Non-current assets:
Property and equipment, net		57,261,208		55,615,411		8,147,347
Total non-current assets		57,261,208		55,615,411		8,147,347
Total Assets		1,207,819,185		866,894,163		126,995,131
Liabilities and Shareholder’s Equity
Current liabilities:
Accounts payable		330,085,426		171,542,903		25,130,073
Customer advances		75,422,483		59,728,244		8,749,853
Dividend payable		96,335,115		-		-
Accrued expenses and other current liabilities		13,765,090		15,755,521		2,308,095
Taxes payable		51,958,677		29,894,592		4,379,390
Amount due to related parties		252,209,794		135,432,975		19,840,171
Total current liabilities		819,776,585		412,354,235		60,407,582
Total Liabilities		819,776,585		412,354,235		60,407,582
Commitments and Contingencies
Shareholders’ equity:
Ordinary shares ($0.001 par value; 900,000,000,000 shares authorized; 716,375,000 issued and outstanding as of December 31, 2008 and June 30, 2009)		4,893,500		4,893,500		716,870
Additional paid-in capital		330,214,330		332,686,444		48,736,697
Statutory reserves		25,000,000		25,000,000		3,662,360
Retained earnings		27,934,770		91,959,984		13,471,622
Total Shareholders’ Equity		388,042,600		454,539,928		66,587,549
Total Liabilities and Shareholder’s Equity		1,207,819,185		866,894,163		126,995,131

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CHINA MASS MEDIA CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	THREE MONTHS ENDED
	September 30, 2008			June 30, 2009			September 30, 2009			September 30, 2009
	RMB			RMB			RMB			US$
Cash flows from operating activities:
Net income		17,413,892			371,263			4,039,710			591,795
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense		245,232			757,596			766,329			112,263
Investment income		(2,018,356	)		(2,408,306	)		(956,768	)		(140,161	)
Exchange (gain)/ loss		1,796,769			161,392			202,609			29,681
Share-based compensation		855,239			1,085,726			443,108			64,913
Changes in assets and liabilities:
Notes receivable		5,741,441			250,000			(2,392,460	)		(350,482	)
Accounts receivable		(32,023	)		22,373,853			3,763,062			551,267
Prepaid expense and other current assets		129,514			(1,021,315	)		(887,194	)		(129,969	)
Deposit paid to a related party		-			(391,664	)		391,664			57,377
Accounts payable		5,042,095			5,693,360			(303,994,566	)		(44,533,498	)
Customer advances		3,443,327			(3,946,321	)		29,770,913			4,361,272
Accrued expenses and other current liabilities		(1,638,245	)		3,807,441			(3,656,772	)		(533,525	)
Taxes payable		3,220,834			(13,701,311	)		(366,530	)		(53,695	)
Amount due to related parties		51,689,579			(26,535,415	)		(123,772,918	)		(18,132,038	)
Net cash provided by/ (used in) operating activities		85,889,298			(13,503,701	)		(396,649,813	)		(58,106,972	)
Cash flows from investing activities:
Redemption/(purchase) of short-term investments		-			70,000,000			(50,000,000	)		(7,324,719	)
Purchase of property and equipment		(125,598	)		(158,508	)		(415,185	)		(60,822	)
Proceeds from investment income		4,205,575			2,487,704			923,891			135,345
Net cash provided by/ (used in) investing activities		4,079,977			72,329,196			(49,491,294	)		(7,250,196	)
Cash flows from financing activities:
Proceeds from issuance of ordinary shares and preferred shares		290,431,451			-			-			-
Distribution made to shareholder in connection with the reorganization		-			(15,000,000	)		-			-
Net cash provided by/ (used) in financing activities		290,431,451			(15,000,000	)		-			-
Effect of foreign currency exchange		(1,796,769	)		(161,389	)		(202,609	)		(29,681	)
Net increase in cash and cash equivalents		378,603,957			43,664,106			(446,343,716	)		(65,386,850	)
Cash and cash equivalents at beginning of the period		213,286,232			1,083,277,296			1,126,941,402			165,090,592
Cash and cash equivalents at end of the period		591,890,189			1,126,941,402			680,597,686			99,703,742

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CHINA MASS MEDIA CORP.

SELECTED OPERATING DATA

	THREE MONTHS ENDED
	September 30, 2008		June 30, 2009		September 30, 2009
Number of programs secured during the period		40		41		41
Total advertising time obtained (seconds)		2,843,520		2,909,160		2,938,860	(1)
Total advertising time sold (seconds)		238,917		389,786		264,660	(2)

(1) Represents the total amount of time during regular television programs secured through our contracts with CCTV, including 554,220 seconds from CCTV-1, CCTV-2 and CCTV-4 and 2,384,640 seconds from CCTV-E and CCTV-F.

(2) During the three-month periods ended September 30, 2008, June 30, 2009 and September 30, 2009, the company has sold nil, 167,760 seconds and 27,840 seconds of advertisements in CCTV-E and CCTV-F.

RECONCILIATIONS OF UNAUDITED NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (*)

	Three months ended September 30, 2008						Three months ended September 30, 2009
	GAAP Result		Adjustment		Non-GAAP Result		GAAP Result		Adjustment		Non-GAAP Result
	RMB		RMB		RMB		RMB		RMB		RMB
									��
Operating income		18,617,606		855,239		19,472,845		3,656,655		443,108		4,099,763
Net income		17,413,892		855,239		18,269,131		4,039,710		443,108		4,482,818

(*) The adjustment is for share-based compensation expenses.

Non-GAAP Disclosure

In addition to the unaudited consolidated financial information presented in accordance with US GAAP, management uses a non-GAAP measure of operating income and net income excluding non-cash share-based compensation. Company management believes excluding the share-based compensation expenses from non-GAAP financial measures is useful for the investors’ understanding of overall current financial performance. Nevertheless, the limitation of using non-GAAP financial measures excluding share-based compensation expenses is that share-based compensation expenses have been and will continue to be a significant recurring expense in the Company’s business.

The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP.  For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of unaudited non-GAAP results of operations measures to the nearest comparable GAAP measures” set forth above, which shall be read in conjunction with the preceding financial information presented in accordance with US GAAP.

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	CHINA MASS MEDIA INTERNATIONAL ADVERTISING CORP.
	(Registrant)
Date:  December 7, 2009	By:	/s/ Shengcheng Wang
		Name:  Shengcheng Wang
		Title:    Chairman and Chief Executive Officer

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