REG - Golden Rock Global - Financial report for the period ended 30 June 2017 <Origin Href="QuoteRef">GCG.L</Origin>

Golden Rock GlobalAnnouncement

27/09/2017 08:46

RNS Number : 9383R
Golden Rock Global PLC
27 September 2017
Golden Rock Global plc
(Incorporated and registered in Jersey under the Companies (Jersey) Law 1991 with registered number 121560)
Unaudited Condensed Interim 
Financial Statements 
For the Period from 1st January 2017 
to 30 June 2017





CHAIRMAN'S STATEMENT
It is a pleasure to announce the interim results for the Company which cover the six month period to 30 June 2017. 
In April 2017, I reported that the Board had received a number of enquiries from potential target companies, we were reviewing these and remained hopeful of concluding a suitable acquisition during the current financial period, ending 31 December 2017.
Subsequently, the Board decided not to move forward with due diligence on any of these opportunities and therefore believes it is now unlikely that a transaction will conclude during the current financial period ending 31 December 2017.
The Board has continued in its search for a suitable acquisition target but notes that the number of opportunities it has received has recently slowed down. In light of this the Board recently arranged for its acquisition criteria to be circulated to a database of professional advisers and is hopeful that this will generate an increased supply of potential opportunities over the coming months.
The Board remains mindful of preserving shareholder funds and I'm pleased to report that as at 30 June 2017 cash balances totalled 1.13m (31 December 2016 1.45m).
On behalf of the Board I thank shareholders for their continued support.
Ross Andrews
Chairman
Date: 26 September 2017
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors confirm, to the best of their knowledge, that these condensed interim financial statements have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and that the interim management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R, namely:
 An indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
 Material related party transactions in the first six months and any material changes in the related party transactions described in the last Annual Report and Accounts.
The directors of Golden Rock Global plc are listed in the Golden Rock Global plc Annual Report and Accounts 2016. A list of current directors is maintained on the website: 
http://www.grg.london/
By Order of the Board
Wei Chen
Director
Date: 26 September 2017


CONDENSED STATEMENT OF COMPREHENSIVE INCOME



Note
Half Year to 30/06/2017
Unaudited

Period From 16/06/2016 to 30/06/2016
Unaudited
Revenue

-

-
Administrative expenses

(187,082)

-
Operating loss

(187,082)

-





Finance income

61

-
Loss before taxation

(187,021)

-
Taxation
 9
-

-
Total comprehensive loss attributable to equity holders of the Company for the period

(187,021)

-







Loss per share - basic and diluted (pence per share)
10
1.17
-
 
The notes on pages 7 to 13 form an integral part of these financial statements.


CONDENSEDSTATEMENTOFFINANCIALPOSITION 
As at 30 June 2017




 Note
30/06/2017
Unaudited


31/12/2016
Assets





Current assets





Prepayments and other receivables

838


1,955
Cash and cash equivalents
11
1,126,349


1,454,083
Total current assets

1,127,187


1,456,038
Total assets

1,127,187


1,456,038
Equity and liabilities





Capital and reserves 





Ordinary shares
13
160,000


160,000
Share premium
13
1,439,100


1,439,100
Accumulated losses

(527,373)


(340,322)
Total equity

1,071,757


1,258,778






Liabilities





Current liabilities





Accruals

44,947


46,625
Amounts due to shareholders
12
10,483


150,635
Total current liabilities

55,430


197,260






Total equity and liabilities

1,127,187


1,456,038
These financial statements were approval by the Board of Directors for issue on 26 September 2017 and signed on behalf by:
WEI CHEN
Executive Director
The notes on pages 7 to 13 form an integral part of these financial statements.
CONDENSEDSTATEMENTOFCHANGESINEQUITY
FOR THE PERIOD ENDED 30 JUNE 2017 








Note
Share 
capital
Share premium

Accumulated losses


Total equity







Balanceat1January201713
160,000
1,439,100

(340,322)


1,258,778









Total comprehensive loss for the financial period

-
-

(187,021)


(187,021)
Balance at 30 June 2017 (Unaudited)
160,000
1,439,100

(527,343)


1,071,757
















FOR THE PERIOD ENDED 30 JUNE 2016









Note
Share 
capital
Share premium

Accumulated losses


Total equity













Issue of shares on incorporation  13
100
-

-


100









Total comprehensive profit for the financial period

-
-

-


-
Balance at 30 June 2016 (Unaudited)
100
-

-


100
The notes on pages 7 to 13 form an integral part of these financial statements.
CONDENSED STATEMENT OF CASH FLOWS




Half Year to 30/06/2017
Unaudited

Period From 16/06/2016 to 30/06/2016
Unaudited
Cash flows from operating activities




Operating loss

(187,082)

-
Foreign exchange gain

(67,916)

-
Increase in receivables

1,118

-
Increase in payables

(1,678)

-
Net cash used in operating activities

(255,558)

-





Cash flows from investing activities




Interest received

61

-
Net cash generated from investing activities

61

-





Cash flows from financing activities




Proceeds from issue of ordinary shares

-

-
Proceeds from borrowings

4,628

-
Repayment of borrowings

(144,781)

-
Net cash generated from financing activities

(140,153)

-





Net increase in cash and cash equivalents 

(395,650)

-
Cash and cash equivalents at beginning of the half-year

1,454,083

-
Foreign exchange movement

67,916

-
Cash and cash equivalents at end of the half-year

1,126,349

-





The notes on pages 7 to 13 form an integral part of these financial statements.



NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
1. GENERAL INFORMATION
The Company was incorporated and registered in Jersey as a public company limited by shares on 17 June 2016under the Companies (Jersey) Law 1991, as amended, with the name Golden Rock Global plc, and registered number 121560.
The Company's registered office is located at 11 Bath Street, St Helier, JE2 4ST, Jersey.
2. PRINCIPAL ACTIVITIES
The principal activity of the Company is to seek acquisition opportunities, initially focusing on the Fintech sector. 
3. RECENT ACCOUNTING PRONOUNCEMENT 
a) New interpretations and revised standards effective for the period ended 30 June 2017
The Company has adopted the new interpretations and revised standards effective for the year ended 31 December 2016. The adoption of these interpretations and revised standards had no material impact on the disclosures and presentation of the financial statements.
 b) Standards and interpretations in issue but not yet effective 
A number of new standards and amendments to existing standards have been issued, but are not effective for the period ended 30 June 2017. The Directors do not anticipate that the adoption of these revised standards and interpretations will have a significant impact on the figures included in the financial statements in the period of initial application other than the following:
IFRS 9: Financial Instruments
The standard makes substantial changes to the measurement of financial assets and financial liabilities. There will only be three categories of financial assets whereby financial assets are recognised at either fair value through profit and loss, fair value through other comprehensive income or measured at amortised cost. On adoption of the standard, the Company will have to re-determine the classification of its financial assets based on the business model for each category of financial asset. This is not considered likely to give rise to any significant adjustments other than the re-categorisation.
The principal change to the measurement of financial assets measured at amortised cost or fair value through other comprehensive income is that impairments will be recognised on an expected loss basis compared to the current incurred loss approach. As such, where there are expected to be credit losses these are recognised in profit or loss. For financial assets measured at amortised cost the carrying amount of the asset is reduced for the loss allowance. For financial assets measured at fair value through other comprehensive income the loss allowance is recognised in other comprehensive income and does not reduce the carrying amount of the financial asset.
Most financial liabilities will continue to be carried at amortised cost, however, some financial liabilities will be required to be measured at fair value through profit or loss, for example derivative financial instruments, with changes in the liabilities' credit risk recognised in other comprehensive income. 
The standard is effective for periods beginning on or after 1 January 2018.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS 
4. ACCOUNTING POLICIES 
a) Basis of preparation
The condensed interim financial statements for the six months ended 31 January 2017 were approved by the Board of Directors on 26 September 2017. The condensed interim financial statements have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and International Accounting Standard 34 "Interim Financial Reporting" (IAS 34) as adopted by the European Union. The accounting policies applied by the company in these condensed interim financial statements are the same as those set out in the company's Annual Report and Accounts for the year ended 31 December 2016. No material new standards, amendments to standards or interpretations are effective in the period ending 30 June 2017.
The condensed interim financial statements are unaudited and have not been reviewed by the auditors. The financial information for the year ended 31 December 2016 does not constitute the Company's statutory financial statements. The Company's statutory financial statements for that year have been filed with the Jersey Registrar of Companies and received an unqualified auditor's report.
The condensed interim financial statements have been prepared on the going concern basis which assumes that the company will continue in operational existence for the foreseeable future on the grounds that the Director will continue to financially support the company until such time has the business achieves financial viability. The company financial statements do not reflect any adjustments that would be required if they were to be prepared on a basis other than the going concern basis.
The financial information is presented in Pounds Sterling (), which is the Company's functional and presentational currency.
b) Foreign currency translation 
The financial statements of the Company are presented in the currency of the primary environment in which the Company operates (its functional currency). 
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit and loss. 
c) Financial instruments 
Financial assets and financial liabilities are recognised in the Statement of Financial Position when the Company becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. 
Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. 
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. 
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS 
4. ACCOUNTING POLICIES (CONT'D) 
Impairment of financial assets 
An assessment for impairment is undertaken when there is objective evidence that a financial asset is impaired. Impairment loss on financial assets is recognised when there is objective evidence that the Company will not be able to collect all the amounts due to it in accordance with the original terms of the receivables. The amount of the impairment loss is determined as the difference between the asset's carrying amount and the present value of estimated future cash flows. 
Financial liabilities 
The Company's financial liabilities include amounts due to shareholders and other payables and accruals. Financial liabilities are recognised when the Company becomes a party to the contractual provision of the 
instrument. All financial liabilities are recognised initially at their fair value, net of transaction costs, and subsequently measured at amortised cost, using the effective interest method, unless the effect of discounting would be insignificant, in which case they are stated at cost. 
The Company derecognises financial liabilities when, and only when, the Company's obligations are discharged, cancelled or they expire. 
d) Cash and cash equivalents 
Cash and cash equivalents includes cash in hand, deposits held on call with banks and other short term (having maturity within 3 months) highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. 
e) Earnings per share 
Basic earnings per share is computed using the weighted average number of shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of shares during the period plus the dilutive effect of dilutive potential ordinary shares outstanding during the year. 
5. ACCOUNTING ESTIMATES AND JUDGEMENTS 
Preparation of financial information in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. 
It is the Directors' view that there are no significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have significant effect on the amount recognised in the financial information for the period.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
6. FINANCIAL RISK MANAGEMENT
a) Categories of financial instruments 
The carrying amounts and fare value of the Company's financial assets and liabilities as at the end of the reporting year are as follows: 



Half Year to 30/06/2017

Period From 16/06/2016 to 31/12/2016





Financial assets





Loans and receivables (including cash and cash equivalents) 

1,126,349

1,454,083







Financial liabilities





Financial liabilities at amortised cost

10,483

150,635
b) Financial risk management objectives and policies.
The Company is exposed to a variety of financial risks: market risk (including interest rate risk and currency risk), credit risk and liquidity risk. The risk management policies employed by the Company to manage these risks are discussed below. The primary objectives of the financial risk management function are to establish risk limits, and then ensure that exposure to risk stays within these limits. The operational and legal risk management functions are intended to ensure proper functioning of internal policies and procedures to minimise operational and legal risks. 
i) Interest rate risks 
All cash holdings and cash equivalents are held in accounts with variable rates. 
ii) Currency risks 
The Company is exposed to exchange rate fluctuations as transactions are undertaken denominated in foreign currencies.
At 30 June 2017 the Company had 1,037,129 cash and cash equivalents in a Hong Kong Dollar account. At 30 June 2017, had the exchange rate between the Pound Sterling and the Hong Kong Dollar increased/decreased by 10%, the effect on the result in the period would be a gain of 94,000 / loss of 94,000.
iii) Credit risk 
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit allowances are made for estimated losses that have been incurred by the reporting date.
Concentrations of credit risk exist to the extent that the Company's cash balances were all held with China Merchants Bank. Per Standard & Poor's, the Short Term Foreign / Local Currency Deposit Rating is A-2.
iv) Liquidity risk 
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities. The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. 
The Company's financial liabilities are primarily amounts due to shareholders. The amounts are unsecured,  interest-free and repayable on demand. 
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
7. SEGMENT REPORTING 
IFRS 8 defines operating segments as those activities of an entity about which separate financial information is available and which are evaluated by the Board of Directors to assess performance and determine the allocation of resources. The Board of Directors are of the opinion that under IFRS 8 the Company has only one operating segment and one geographic market in UK. The Board of Directors assess the performance of the operating segment using financial information which is measured and presented in a manner consistent with that in the Financial Statements. Segmental reporting will be reviewed and considered in light of the development of the Company's business over the next reporting period. 
8. STAFF COSTS AND KEY MANAGEMENT EMOLUMENTS 


Half Year to 30/06/2017



Period From 16/06/2016 to 30/06/2016
Key management emoluments






Remuneration 

50,000



-














The annual remuneration of the key management was as follows, with no other cash or non-cash benefits.












Executive Directors








Wei Chen



7,500













Non-executive Directors








Ross Andrews



15,000




John Croft



12,500




Feng Chen



7,500




Bin Shi



7,500








50,000




 Included within accruals is 31,875, which relates to unpaid directors remuneration.
9. TAXATION 
The Company is incorporated in Jersey, and its activities are subject to taxation at a rate of 0%.
10. EARNINGS PER SHARE 
The Company presents basic and diluted earnings per share information for its ordinary shares. Basic earnings per share are calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares in issue during the reporting period. Diluted earnings per share are determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares.
There is no difference between the basic and diluted earnings per share, as the Company has no potential ordinary shares.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
10. EARNINGS PER SHARE (CONT'D)



Half Year to 30/06/2017
Period From 16/06/2016 to 30/06/2016





Loss attributable to ordinary shareholders 


187,021
-
Weighted average number of shares


16,000,000
-
Earnings per share (expressed as pence per share)


1.17
-





11. CASH AND CASH EQUIVALENTS


30/06/2017

31/12/2016



Cash at bank equivalents 

1,126,349

1,454,083





Cash at bank earns interest at floating rates based on daily bank deposit rates.


12. AMOUNTS DUE TO SHAREHOLDERS


30/06/2017

31/12/2016



Shareholders' loan

10,483

150,635





The shareholders' loan as at 30 June 2017 is unsecured, interest free and repayable on demand.
13. SHARE CAPITAL


Number of shares
Nominal
value 

Authorised



Ordinary shares of GBP 0.01 each 
48,000,000
480,000





Issued and fully paid



On incorporation
100
100

Subdivided share capital 
9,900
-


10,000
100

Issue of shares upon placing 
15,990,000
159,900

At 31 December 2016 and 30 June 2017
16,000,000
160,000
The Company was incorporated and registered in Jersey as a public company limited by shares on 17 June 2016 and was authorised to issue 10,000 shares of 1 each. The total issued shares on incorporation were 100 shares of 1 each.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
13. SHARE CAPITAL (CONT'D)
On 19 October 2016, it was resolved to subdivide the Company's share capital by a ratio of 1:100, so that the shares had a nominal value of 0.01 per share. It was also resolved to increase the authorised share capital from 1,000,000 share of 0.01 each to 48,000,000 shares of 0.01 each.
On 20 October 2016, a total of 15,990,000 ordinary shares of 0.01 each were issued by way of placing with institutional and other investors at a placing price of 0.10 per placing share for cash consideration 1,599,000 on the Main market of the London Stock Exchange. The excess of the placing price over the par value of the shares issued was credited to the share premium account. 
The issued shares have nominal value of each share of 0.01 and are fully paid. There are no restrictions on the distribution of dividends and the repayment of capital.
14. CAPITAL MANAGEMENT 
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the balance between debt and equity. 
The capital structure of the Company as at 30 June 2017 consisted of shareholders' loans of 10,483 (see note 12) and equity attributable to the equity holders of the Company, totalling 1,071,757 (disclosed in the statement of changes in equity). 
The Company reviews the capital structure on an on-going basis. As part of this review, the directors consider the cost of capital and the risks associated with each class of capital. The Company will balance its overall capital structure through the payment of dividends, new share issues and the issue of new debt or the repayment of existing debt. 
15. RELATED PARTY TRANSACTIONS 
The remuneration of the Directors, the key management personnel of the Company, is set out in note 8. 
As at 30 June 2017, there is a balance due to the shareholders of 10,483 (see note 12).

This information is provided by RNS
The company news service from the London Stock Exchange
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