REG-Grand Vision Media: Half-year Report
28/10/2020 10:50
London, 28 October 2020
GRAND VISION MEDIA HOLDINGS PLC (“GVMH” or the “Company”)
HALF YEARLY REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2020
The CEO’s Report
Overview
The onset of the COVID-19 pandemic in early 2020 has had a significant adverse
effect on the Group’s performance in the first half of 2020. The major
restrictions on travel and closure of businesses has caused significant
disruption and erosion of confidence, resulting in a decline in revenues in
the period. Cinemas remain closed in China, which has had a major adverse
impact on the out-of-home advertising revenues.
It is uncertain as to when trading conditions will return to normal, and the
disruption is expected to continue for the remainder of the financial year.
The Group has increased its focus on eCommerce marketing and services to
mitigate against the decline in its traditional revenues, by leveraging its
contact base and international business network. These services are
predominantly targeted at suppliers of medical equipment, who have experienced
a significant increase in activity levels as a result of the pandemic.
We have also continued our expansion plan, by forging more strategic
partnerships, both in geographic expansion and also in the development of new
location types. This includes a partnership with Mediaplus of Singapore, who
will work with us to expand into Singapore. We are also evaluating the
implementation of our panels at retail locations such as supermarkets and
department stores.
Summary of Trading Results
Revenue in the period was HKD6,045K [1H2019 : HKD7,886K], which represents a
decline of 23%. The Group had a loss after tax of HKD664K [1H2019 : HKD8,164K
loss]. The Group has managed to achieve cost savings as a result of space
consolidation and headcount reductions, and has taken advantage of Government
fiscal support aimed at helping businesses through the pandemic.
Outlook
The cinemas across China started to re-open from July 2020, operating with
reduced audiences. This situation remains as at today. The outlook for the
reminder of the financial year remains uncertain, and trading conditions are
expected to be challenging. The Group will continue to focus on generating
revenue from other sources whilst its traditional business remains affected by
the effects of the pandemic.
Responsibility Statement
We confirm that to the best of our knowledge:
a. the condensed set of financial statements has been prepared in accordance
with IAS 34 ‘Interim Financial Reporting’;
b. the interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first six
months and description of principal risks and uncertainties for the remaining
six
months of the year; and,
c. the interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties’ transactions and
changes therein).
Cautionary statement
This Interim Management Report (IMR) has been prepared solely to provide
additional information to shareholders to
assess the Company’s strategies and the potential for those strategies to
succeed. The IMR should not be relied on by
any other party or for any other purpose.
The condensed accounts have not been reviewed by the auditors.
Jonathan Lo
Chief Executive Officer
Date : 28 October 2020
Interim Condensed Statement of Comprehensive Income
Notes GVMH 6 months Ended 30 June 2020 GVMH 6 months Ended 30 June 2019 GVMH Year End 31 December 2019
HK$’000 HK$’000 HK$’000
Turnover 6,045 7,886 12,034
Cost of Sales (3,142) (6,571) (10,648)
Gross Profit 2,903 1,315 1,386
Other Income / Expenditure 729 167 184
Administrative expenses (1,250) (3,413) (6,305)
Depreciation (503) (1,708) (2,350)
Admission costs (2,401) (4,451) (7,787)
Premium on reverse acquisition - - -
Operating Loss (522) (8,090) (14,872)
Finance Cost (142) (74) (223)
Loss before taxation (664) (8,164) (15,095)
Tax on loss on ordinary activities - - -
Loss after taxation (664) (8,164) (15,095)
Exchange difference arising on Translation (486) (955) 138
Loss and total comprehensive loss for the period (1,150) (9,119) (14,957)
(Loss)/profit attributable to:
Equity holders of the Company (306) (8,348) (15,221)
Non-controlling interests (358) 184 126
(664) (8,164) (15,095)
Total comprehensive (loss)/income attributable to:
Equity holders of the Company (792) (9,303) (15,083)
Non-controlling interests (358) 184 126
(1,150) (9,119) (14,957)
Basic and diluted earnings per share (HK$) 5 (0.0069) (0.0867) (0.1568)
Interim Condensed Statement of Changes in Equity
GVMH PLC Share Capital Share Premium Group Reorganization Reserve Capital Contribution arising from shareholders loan Exchange Reserve Non-Controlling Interest Retained Earnings Total Equity
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
Balance at 31 December 2018 96,017 44,106 (96,631) - 1,896 (3,410) (54,215) (12,237)
Re-Organization Reserve - - 4,461 - - - - 4,461
Capital Contribution - - - 844 - - - 844
Exchange Reserve - - - - 927 - (296) 631
Non-Controlling Interest - - - - - 184 - 184
Loss for the period - - - - - - (9,303) (9,303)
Balance at 30 JUNE 2019 96,017 44,106 (92,170) 844 2,823 (3,226) (63,814) (15,420)
Share issue - - - - - - - -
Re-Organization Reserve - - (4,461) - - - - (4,461)
Capital Contribution - - - - - - - -
Exchange Reserve - - - - 5,535 - - 5,535
Non-Controlling Interest - - - - - (58) - (58)
Loss for the Period - - - - - - (5,534) (5,534)
Balance at 31 December 2019 96,017 44,106 (96,631) 844 8,358 (3,284) (69,348) (19,938)
Re-Organization Reserve - - (2,641) - - - - (2,641)
Capital Contribution - - - 2,552 - - - 2,552
Exchange Reserve - - - - (1,313) - - (1,313)
Non-Controlling Interest - - - - - 2,282 - 2,282
Loss for the period - - - - - - (307) (307)
Balance at 30 JUNE 2020 96,017 44,106 (99,272) 3,396 7,045 (1,002) (69,655) (19,365)
Share capital is the amount subscribed for shares at nominal value.
The share premium has arisen on the issue of shares at a premium to their
nominal value.
Retained losses represent the cumulative loss of the Company attributable to
equity shareholders.
Interim Condensed Statement of the Financial Position
Notes GVMH 30 June 2020 GVMH 30 June 2019 GVMH 31 December 2019
HK$’000 HK$’000 HK$’000
Assets
Non-Current Assets
Property, plant and equipment 219 488 165
Right of use assets (IFRS16) 1,397 - 1,710
Total Non-Current Asset 1,616 488 1,875
Current assets
Inventories 985 994 1,004
Trade and Other Receivables 7,422 6,890 6,403
Deposits and Pre-Payments 233 360 395
Cash and Cash Equivalents 1,643 2,752 510
Total Current Assets 10,283 10,996 8,312
Total Assets 11,899 11,484 10,187
Equity and Liabilities
Share Capital 6 96,017 96,017 96,017
Share Premium Account 6 44,106 44,106 44,106
Group Re-organization Reserve (99,272) (92,170) (96,631)
Capital Contribution arising from Shareholder’s Loan 3,396 844 844
Exchange Reverses 7,045 2,823 8,358
Non-Controlling Interest (1,002) (3,226) (3,284)
Retained Earnings (69,655) (63,814) (69,348)
Total Equity (19,365) (15,420) (19,938)
Liabilities
Non-Current Liabilities
Shareholders loan 13,985 13,779 14,715
Total Non-Current Liabilities 13,985 13,779 14,715
Current Liabilities
Trade and Other Payables 14,379 12,399 13,050
Amount Due to Directors 1,426 551 515
Lease Liability 1,449 - 1,761
Deposits Received 25 175 84
Total Current Liability 17,279 13,125 15,410
Total Liabilities 31,264 26,904 30,125
Total Equity and Liabilities 11,899 11,484 10,187
Interim Condensed Cash Flow Statement
Notes GVMH 6 Months Ended 30 JUNE 2020 GVMH 6 Months Ended 30 JUNE 2019 GVMH For the year ended 31 December 2019
HK$’000 HK$’000 HK$’000
Cash flows from operating activities
Operating loss (664) (8,164) (15,095)
Add: Depreciation 503 1,708 2,350
Add: Finance Cost on Shareholders loan 142 74 223
Add: Non Cash Successful fee - - -
Add: Share based payment 1,320
Changes in working capital
(Increase) / decrease in inventories 19 712 702
(Increase) / decrease in receivables (857) (1,787) (1,299)
Decrease in deposits and prepayments - 677 641
Increase / (decrease) in payables 3,150 2,133 2,473
Decrease in deposit received - - (27)
Net cash flow from operating activities 2,293 (4,647) (8,712)
Investing Activities
Payments for Purchase of Property, Plant and equity - (12) (10)
Acquisition of fixed assets (246) - -
Net cash flow from investing activities (246) (12) (10)
Cash flows from financing activities:
Payment of lease liabilities (329) - (290)
Increase in an amount due from director - - 211
Increase in convertible loans - - 6,904
(Repayment of) / proceeds from Shareholder loans 416 5,029 (850)
Net cash flow from financing activities 87 5,029 5,975
Net cash flow for the period 2,134 370 (2,746)
Opening Cash and cash equivalents 510 2,552 2,552
Effect on Foreign exchange rate changes (1,001) (170) 704
Closing Cash and cash equivalents 1,643 2,752 510
Notes to the Interim Condensed Financial Statements
1. General Information
GRAND VISION MEDIA HOLDINGS PLC (‘the Company’) is a media company
incorporated in the United Kingdom. Details of the registered office, the
officers and advisers to the Company are presented on the Directors and
Advisers page at the end of this report. The information within these
interim condensed financial statements and accompanying notes must be read in
conjunction with the audited annual financial statements that have been
prepared for the period ended 31 December 2019.
2. Basis of Preparation
These unaudited condensed consolidated interim financial statements for the
six months ended 30 June 2020 were approved by the board and authorised for
issue on 28 October 2020.
The basis of preparation and accounting policies set out in the Annual Report
and Accounts for the period ended 31 December 2019 have been applied in the
preparation of these condensed interim financial statements. These interim
financial statements have been prepared in accordance with the recognition and
measurement principles of the International Financial Reporting Standards
(“IFRS”) as endorsed by the EU that are expected to be applicable to the
financial statements for the year ending 31 December 2020 and on the basis of
the accounting policies expected to be used in those financial statements.
The figures for the six months ended 30 June 2020 and 30 June 2019 are
unaudited and do not constitute full accounts. The comparative figures for the
period ended 31 December 2019 are extracts from the 2019 audited accounts.
The independent auditor’s report on the 2019 accounts was not qualified.
The assets and liabilities of the legal subsidiary, GVC Holdings Limited are
recognized and measured in the Group financial statements at the
pre-combination carrying amounts, without restatement of fair value. The
retained earnings and other equity balances recognized in the Group financial
statements reflect the retained earnings and other equity balances of Grand
Vision Media Holdings plc immediately before the reverse and the results of
the period from 1 January 2019 to 30 June 2019 and post reverse.
Standards and Interpretations adopted with no material effect on financial
statements
There are no other IFRS or IFRIC interpretations that are not yet effective
that would be expected to have material impact on the Group.
Going concern
The Group’s forecasts and projections, taking into account the increase in
revenue from new streams to mitigate against the decline in traditional
revenues, and changes in the level of overhead costs, show that the company
should be able to operate within its available cash resources. The directors
have, at the time of approving the interim accounts, a reasonable expectation
that the Group has adequate resources to continue in existence for the
foreseeable future. They therefore continue to adopt the going concern basis
of accounting in preparing the financial statements.
The onset of the COVID-19 pandemic in early 2020 has had a significant adverse
effect on the Group’s performance in the first half of 2020. The outlook for
the reminder of the financial year remains uncertain, and trading conditions
are expected to be challenging. The Group will continue to focus on generating
revenue from other sources whilst its traditional business remains adversely
impacted by the effects of the pandemic.
3. Segmental Reporting
In the opinion of the Directors, the Company has one class of business, being
that of out of home media and marketing and operates in the Peoples Republic
of China/Hong Kong.
4. Company Result for the period
The Company has elected to take the exemption under section 408 of the
Companies Act 2006 not to present the parent Company income statement account.
The operating loss of the Company for the six months ended 30 June 2020 was
HK$ 585,869 (2019:
loss of HK$ 1,052,293, year ended 31 December 2019: HK$ 1,273,000). The
current period operating loss incorporated the following main items:
GVMH 30 JUNE 2020 GVMH 30 JUNE 2019 GVMH 31 December 2019
(Unaudited) (Unaudited) (Audited)
HK$‘000 HK$‘000
Accounting and administration fees - 79 209
Employment expenses 297 732 521
Rent fees - - -
Legal and professional fees 150 49 304
Listing costs - 115 -
Other expenses 139 77 239
Total 586 1,052 1,273
5. Earnings per Share
Earnings per share data is based on the Company result for the six months and
the weighted average number of shares in issue.
Basic loss per share is calculated by dividing the loss attributable to equity
shareholders by the weighted average number of ordinary shares in issue during
the period:
GVMH 30 June 2020 GVMH 30 June 2019 GVMH 31 December 2019
HK$ HK$ HK$
Loss after tax (664,000) (8,348,000) (15,095,000)
Weighted average number of ordinary shares in issue 96,287,079 96,287,079 96,287,079
Basic and diluted loss per share (0.0069) (0.0867) (0.1568)
Basic and diluted earnings per share are the same, since where a loss is
incurred the effect of outstanding share options and warrants is considered
anti-dilutive and is ignored for the purpose of the loss per share
calculation. There were no potential dilutive shares in issue during the
period.
6. Share Capital
Ordinary shares are classified as equity. Proceeds from issuance of ordinary
shares are classified as equity. Incremental costs directly attributable to
the issuance of new ordinary shares are deducted against share capital.
Allotted, called up and fully paid ordinary shares of 10p each Number of shares Share Capital Share Capital Share Premium Share Premium
£ HK$ £ HK$
Balance at 31 December 2018 96,287,079 9,628,708 96,017,186 4,422,954 44,105,565
Balance at 30 JUNE 2019 96,287,079 9,628,708 96,017,186 4,422,954 44,105,565
Balance at 31 December 2019 96,287,079 9,628,708 96,017,186 4,422,954 44,105,565
Balance at 30 JUNE 2020 96,287,079 9,628,708 96,017,186 4,422,954 44,105,565
7 Events Subsequent to 30 June 2020
There were no events subsequent to the balance sheet date.
8. Reports
This interim condensed financial statements will be available shortly on the
Company website at www.gvmh.co.uk
For more information:
Grand Vision Media Holdings plc http://gvmh.co.uk/
Ajay Rajpal, Director Tel: +44 (0) 20 7866 2145 or info@gvmh.co.uk
Alfred Henry Corporate Finance Ltd
Nick Michaels / Jon Isaacs Tel: +44 (0) 20 3772 0021 or jisaacs@alfredhenry.com
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