REG-Grand Vision Media: Half-year Report
28/09/2022 14:30
London, 28 September 2022
FOR IMMEDIATE RELEASE
Grand Vision Media Holdings plc
( “GVMH” or the “Company”)
Half Year Report
Grand Vision Media Holdings plc announces its half year report for the six
months ended 30 June 2022.
The CEO’s Report
Overview
COVID continued to have a significant adverse impact on the Group’s
performance in the first half of 2022. OOH revenues were severely impacted by
the closure of cinemas across China, together with the regional travel
restrictions, and Hong Kong having the worst COVID infections in the first
half of 2022. There was a high degree of uncertainty throughout that period,
with a resulting loss in overall business confidence.
Summary of Trading Results
Revenue in the period was HKD1,877K [2021 : HKD1,742K], which represents a
rise of 7.7%. The Group had a loss after tax of HKD2,265K [2021 : HKD3,335K].
The Group continued to adopt prudent cost controls whilst exploring
alternative revenue streams to augment the revenue.
Outlook
The effects of COVID continued to adversely effect the Group’s performance
in 2022. Much of Asia was under very strict lock down rules and international
travel was practically suspended. The lock down in Shanghai in early 2022
gave us further challenges for the first half of the current financial year.
Cinemas in China are still operating at reduced capacity.
We continue to explore new opportunities and revenue streams whilst the core
business struggles under COVID restrictions. By leveraging our international
contacts, we are facilitating international trade, with a particular focus on
commodities including metals and foodstuff. We are also assisting China
buyers to explore new international trading channels.
However, we are hopeful for the resumption of cross border travel in second
half of the year which should result in a slow but steady return to normalcy
in travel and trading for the remainder of the year.
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.
Interim Condensed Statement of Comprehensive Income
Notes GVMH 6 months Ended 30 June 2022 GVMH 6 months Ended 30 June 2021 GVMH Year End 31 December 2021
HK$’000 HK$’000 HK$’000
Turnover 1,877 1,742 3,039
Cost of Sales (1,535) (1,788) (2,963)
Gross Profit 342 (46) 76
Other Income / Expenditure 263 (182) 2,460
Administrative expenses (2,531) (2,465) (7,020)
Depreciation (334) (624) (1,681)
Operating Loss (2,260) (3,317) (6,165)
Finance Cost (5) (18) (19)
Loss before taxation (2,265) (3,335) (6,184)
Tax on ordinary activities - - -
Loss after taxation (2,265) (3,335) (6,184)
Exchange difference arising on Translation (1,387) 368 824
Loss and total comprehensive loss for the period (3,652) (2,967) (5,360)
(Loss)/profit attributable to:
Equity holders of the Company (2,287) (3,257) (5,882)
Non-controlling interests 22 (78) (302)
(2,265) (3,335) (6,184)
Total comprehensive (loss)/income attributable to:
Equity holders of the Company (3,674) (2,888) (5,058)
Non-controlling interests 22 (78) (302)
(3,652) (2,967) (5,360)
Basic and diluted earnings per share (HK$) 5 (0.02) (0.03) (0.06)
Interim Condensed Statement of Changes in Equity
GVMH PLC Share Capital Share Premium Group Reorganization Reserve Capital Contribution arising from shareholders loan Exchangeand OtherReserve 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 2020 96,017 44,106 (100,031) 844 7,190 (173) (79,109) (31,156)
Exchange Reserve - - - - (198) - - (198)
Non-Controlling Interest - - - - - (79) - (79)
Loss for the period - - - - - - (3,257) (3,257)
Balance at 30 JUNE 2021 96,017 44,106 (100,031) 844 6,992 (252) (82,366) (34,690)
Exchange Reserve - - - - 23 - - 23
Lapse of the share option - - - - (1,447) - 1,447 -
Non-Controlling Interest - - - - - (223) - (223)
Loss for the Period - - - - - - (2,625) (2,625)
Balance at 31 December 2021 96,017 44,106 (100,031) 844 5,568 (475) (83,544) (37,515)
Exchange Reserve - - - - 1,104 - - 1,104
Non-Controlling Interest - - - - - 22 - 22
Loss for the period - - - - - - (2,287) (2,287)
Balance at 30 JUNE 2022 96,017 44,106 (100,031) 844 6,672 (453) (85,831) (38,676)
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 2022 GVMH 30 June 2021 GVMH 31 December 2021
HK$’000 HK$’000 HK$’000
Assets
Non-Current Assets
Property, plant and equipment 57 131 103
Right of use assets (IFRS16) 241 530 530
Total Non-Current Asset 298 661 633
Current assets
Inventories - - -
Trade and Other Receivables 867 3,363 1,327
Deposits and Pre-Payments 203 387 187
Cash and Cash Equivalents 270 490 172
Total Current Assets 1,340 4,240 1,686
Total Assets 1,638 4,901 2,319
Equity and Liabilities
Share Capital 6 96,017 96,017 96,017
Share Premium Account 6 44,106 44,106 44,106
Group Re-organization Reserve (100,031) (100,031) (100,031)
Capital Contribution arising from Shareholder’s Loan 844 844 844
Exchange and Other Reverses 6,672 6,992 5,568
Non-Controlling Interest (453) (252) (475)
Accumulated deficit (85,831) (82,366) (83,544)
Total Equity (38,676) (34,690) (37,515)
Liabilities
Non-Current Liabilities
Convertible Bonds 5,376 6,041 5,946
Shareholders loans 11,235 9,232 9,647
Total Non-Current Liabilities 16,611 15,273 15,593
Current Liabilities
Trade and Other Payables 12,622 15,033 12,747
Amount Due to Directors 3,490 3,263 3,589
Lease Liability 255 558 558
Deposits Received - 28 11
Shareholder loan 7,336 5,436 7,336
Total Current Liability 23,703 24,318 24,241
Total Liabilities 40,314 39,591 39,834
Total Equity and Liabilities 1,638 4,901 2,319
Interim Condensed Cash Flow Statement
GVMH 6 Months Ended 30 JUNE 2022 GVMH 6 Months Ended 30 JUNE 2021 GVMH For the year ended 31 December 2021
HK$’000 HK$’000 HK$’000
Cash flows from operating activities
Operating loss (2,265) (3,335) (6,184)
Add: Depreciation 334 46 669
Add: Finance Cost 5 578 19
Add: Provision for the trade receivables - - 365
Add: Impairment loss on the intercompany current account 581
Changes in working capital (1,926) (2,711) (4,550)
Decrease in receivables 460 199 1,857
(increase) / Decrease in deposits and prepayments (16) - 213
Decrease in payables (1,011) (595) (3,842)
Net cash flow from/(used in) operating activities (2,493) (3,107) 6,322
Investing Activities
Acquisition of fixed assets - (7) (24)
Net cash flow from investing activities - (7) (24)
Cash flows from financing activities:
Payment of lease liabilities (308) (616) (616)
Increase in an amount due from director - - 22
Proceeds from Shareholder loans 1,018 2,587 2,766
Net cash flow from financing activities 710 1,971 4,172
Net cash flow for the period (1,783) (1,143) (2,174)
Opening Cash and cash equivalents 172 855 855
Effect on Foreign exchange rate changes 1,881 778 1,491
Closing Cash and cash equivalents 270 490 172
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 2021.
2. Basis of Preparation
These unaudited condensed consolidated interim financial statements for the
six months ended 30 June 2022 were approved by the board and authorised for
issue on 28 September 2022.
The basis of preparation and accounting policies set out in the Annual Report
and Accounts for the year ended 31 December 2021 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 2022 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 2022 and 30 June 2021 are
unaudited and do not constitute full accounts. The comparative figures for the
period ended 31 December 2021 are extracts from the 2021 audited accounts.
The independent auditor’s report on the 2021 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 2021 to 30 June 2021 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.
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 2022 was
HK$441,092 (2021:
loss of HK$544,593, year ended 31 December 2021: HK$1,427,487). The current
period operating loss incorporated the following main items:
GVMH 30 JUNE 2022 GVMH 30 JUNE 2021 GVMH 31 December 2021
(Unaudited) (Unaudited) (Audited)
HK$‘000 HK$‘000
Employment expenses 308 323 641
Legal and professional fees 75 166 308
Other expenses 58 56 229
Total 441 545 1,178
5. Earnings per Share
Earnings per share data is based on the Company result for the six months and
the weighted average number of shares in issue.
Basic loss per share is calculated by dividing the loss attributable to equity
shareholders by the weighted average number of ordinary shares in issue during
the period:
GVMH 30 June 2022 GVMH 30 June 2021 GVMH 31 December 2021
HK$ HK$ HK$
Loss after tax (2,265,000) (3,335,000) (6,184,000)
Weighted average number of ordinary shares in issue 96,287,079 96,287,079 96,287,079
Basic and diluted loss per share (0.02) (0.03) (0.06)
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 2020 96,287,079 9,628,708 96,017,186 4,422,954 44,105,565
Balance at 30 JUNE 2021 96,287,079 9,628,708 96,017,186 4,422,954 44,105,565
Balance at 31 December 2021 96,287,079 9,628,708 96,017,186 4,422,954 44,105,565
Balance at 30 JUNE 2022 96,287,079 9,628,708 96,017,186 4,422,954 44,105,565
7. Events Subsequent to 30 June 2022
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 contact:
Grand Vision Media Holdings plc Jonathan Lo, Director gvmh.co.uk/ Tel: +44 (0) 20 7866 2145 or info@gvmh.co.uk
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