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Share Name Share Symbol Market Type Share ISIN Share Description
Grand Vision Media Holdings Plc LSE:GVMH London Ordinary Share GB00BDHBGL97 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 5.00 4.00 6.00 5.00 5.00 5.00 0.00 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Media 1.8 -3.3 -3.4 - 5

Grand Vision Media Half-year Report

30/09/2019 7:00am

UK Regulatory (RNS & others)


 
TIDMGVMH 
 
London, 30 September 2019 
 
           GRAND VISION MEDIA HOLDINGS PLC ("GVMH" or the "Company") 
 
           HALF YEARLY REPORT FOR THE SIX MONTHSED 30 JUNE 2019 
 
The CEO's Report 
 
Overview 
 
General market conditions for the advertising sector were tough in the first 
six months, primarily caused by the concern of the economic impact and extended 
timeline of the trade war between US and China. 
 
In the past six months, we have expanded both our network and our presence in 
the region.  We concluded our partnership agreement with Dadi Cinemas and 
rolled out our glasses free 3D panels to further twenty cinemas.  We also 
secured the right to be their sales partner for their cinema advertising 
assets. 
 
We also signed with strategic partners in Japan and Korea to strengthen our 
sales presence in those regions, in line with our strategy to capture a larger 
share of marketing budget targeted at Chinese outbound tourism. 
 
We have also started a pilot project with CJ CGV Cinemas in Korea.  This is a 
significant development that confirms our cinema-centric model has an appeal 
that is not unique in China.  We may consider develop similar partnerships in 
the wider region. 
 
Summary of Trading Results 
 
GVMH Consolidated Results for the 6 Months to 30 June 2019 
 
Revenue in the period was HKD7,886K. The Company had a loss before tax of 
HKD8,164K. The expenses in the period included listing costs amounting to 
HKD115K. 
 
GVC Holdings Ltd ("GVCH") Results for the 6 Months to 30 June 2019 
 
Revenue in the period was HKD7,886K (H1 2018 : HKD7,415K), representing an 
increase of 6% compared to the same period last year. Despite a tight market, 
we have been able to deliver more integrated campaigns and marketing events to 
supplement the traditional OOH advertising revenue.  Revenue from social media 
marketing also grew by over 10 percent to HKD 2,600K.  GVCH had a loss before 
tax in the period of HKD7,111K (H1 2018: HKD6,745K). 
 
Outlook 
 
The Successful pilot in Korea with CJ CGV cinemas is a significant development 
for the Group. As a result, we are in the planning stage of a bigger roll out 
with the CJ CGV cinemas in Korea. This also encourages us to evaluate the 
possibility of expanding our network to other Asian countries. 
 
To respond to the changes in the market dynamics, we are making some 
re-alignment of our strategy to ensure a broad coverage in China whilst 
focussing in the top ten to fifteen cities in China while enlarging our network 
through representing other advertising assets within cinemas.  We shall 
relocate our own glasses free 3D panels to these cities with an aim to achieve 
a bigger critical mass in those cities. In addition to strengthening existing 
overseas partnerships, we are in discussions with partners in Asian countries 
such as Singapore and Thailand. 
 
The luxury goods segment in China continues to grow and we are planning to work 
with a leading distributor / buying office of luxury fashion brands in China to 
boost our market access and industry insights, allowing us to better serve 
clients in this sector. Through this partnership we hope to provide both 
on-line and off-line marketing services to luxury fashion brands seeking to 
establish themselves in China. 
 
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 : 27 September 2019 
 
 
Interim Condensed Statement of Comprehensive Income 
 
                                                     GVMH          GVMH         GVMH 
                                                 6 months      6 months     Year End 
                                                    Ended         Ended  31 December 
                                    Notes         30 June       30 June         2018 
                                                     2019          2018 
 
                                                  HK$'000       HK$'000      HK$'000 
 
Turnover                                            7,886         7,415       18,026 
 
Cost of Sales                                     (6,571)       (4,166)     (12,140) 
 
Gross Profit                                        1,315         3,249        5,886 
 
Other Income / Expenditure                            167            62           79 
 
Administrative expenses                           (3,413)       (8,263)     (20,524) 
 
Depreciation                                      (1,708)       (2,008)      (3,982) 
 
Admission costs                                   (4,451)       (8,385)      (8,946) 
 
Premium on reverse acquisition                          -       (5,259)      (5,259) 
 
Operating Loss                                    (8,090)      (20,604)     (32,746) 
 
Finance Cost                                         (74)         (141)        (316) 
 
Loss before taxation                              (8,164)      (20,745)     (33,062) 
 
Tax on loss on ordinary                                 -             -            - 
activities 
 
Loss after taxation                               (8,164)      (20,745)     (33,062) 
 
Exchange difference arising on                      (955)             -          772 
Translation 
 
Loss and total comprehensive loss                 (9,119)      (20,745)     (32,290) 
for the period 
 
(Loss)/profit attributable to: 
 
Equity holders of the Company                     (8,348)      (20,699)     (33,069) 
 
Non-controlling interests                             184          (46)            7 
 
                                                  (8,164)      (20,745)     (33,062) 
 
Total comprehensive (loss)/income 
attributable to: 
 
Equity holders of the Company                     (9,303)      (20,699)     (33,297) 
 
Non-controlling interests                             184          (46)            7 
 
                                                  (9,119)      (20,745)     (33,290) 
 
Basic and diluted earnings per        5           (0.085)        (1.56)       (0.34) 
share (HK$) 
 
 
 
Interim Condensed Statement of Changes in Equity 
 
GVMH PLC                                                Capital 
                                                   Contribution 
                                             Group arising from          Non-Controlling 
                    Share     Share Reorganization shareholders Exchange        Interest Retained    Total 
                   Capital  Premium        Reserve         loan  Reserve                 Earnings   Equity 
 
                   HK$'000  HK$'000        HK$'000      HK$'000  HK$'000         HK$'000  HK$'000  HK$'000 
 
Balance at 19 June  99,782   45,835              -            -        -               - (21,918)  123,699 
2018 
 
Re-Organization          -        -       (96,631)            -        -               -        - (96,631) 
Reserve 
 
Capital                  -        -              -          844        -               -        -      844 
Contribution 
 
Exchange Reserve         -        -              -            -    (222)               -        -    (222) 
 
Non-Controlling          -        -              -            -        -         (3,464)        -  (3,464) 
Interest 
 
Loss for the            -        -               -            -        -               - (20,699) (20,699) 
period 
 
Balance at 30 June  99,782   45,835       (96,631)          844    (222)         (3,464) (42,617)    3,527 
2018 
 
Share issue        (3,765)        -              -            -        -               -        -  (3,765) 
 
Share Premium            -  (1,729)              -            -        -               -        -  (1,729) 
 
Capital                  -        -              -        (844)        -               -        -    (844) 
Contribution 
 
Exchange Reserve         -        -              -            -    2,118               -        -    2,118 
 
Non-Controlling          -        -              -            -        -              54        -       54 
Interest 
 
Loss for the             -        -              -            -        -               - (11,598) (11,598) 
Period 
 
Balance at 31       96,017   44,106       (96,631)            -    1,896         (3,410) (54,215) (12,237) 
December 2018 
 
Re-Organization          -        -          4,461            -        -               -        -    4,461 
Reserve 
 
Capital                  -        -              -          844        -               -        -      844 
Contribution 
 
Exchange Reserve         -        -              -            -      927               -    (296)      631 
 
Non-Controlling          -        -              -            -        -             184        -      184 
Interest 
 
Loss for the            -        -               -            -        -               -  (9,303)  (9,303) 
period 
 
Balance at 30 June  96,017   44,106       (92,170)          844    2,823         (3,226) (63,814) (15,420) 
2019 
 
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 
 
                                                    GVMH        GVMH          GVMH 
                                   Notes         30 June     30 June   31 December 
                                                    2019        2018          2018 
 
                                                 HK$'000     HK$'000       HK$'000 
 
Assets 
 
Non-Current Assets 
 
Property, plant and equipment                        488       4,192         2,183 
 
Investment in Subsidiary                               -           -             - 
 
Total Non-Current Asset                              488       4,192         2,183 
 
Current assets 
 
Inventories                                          994       2,403         1,707 
 
Trade and Other Receivables                        6,890       6,083         5,104 
 
Deposits and Pre-Payments                            360         871         1,036 
 
Cash and Cash Equivalents                          2,752       8,692         2,552 
 
 Total Current Assets                             10,996      18,049        10,399 
 
Total Assets                                      11,484      22,241        12,582 
 
Equity and Liabilities 
 
Share Capital                        6            96,017      99,782        96,017 
 
Share Premium Account                6            44,106      45,835        44,106 
 
Group Re-organization Reserve                   (92,170)    (96,631)      (96,631) 
 
Capital Contribution arising                         844         844             - 
from Shareholder's Loan 
 
Exchange Reverses                                  2,823       (222)         1,896 
 
Non-Controlling Interest                         (3,226)     (3,464)       (3,410) 
 
Retained Earnings                               (63,814)    (42,617)      (54,215) 
 
Total Equity                                    (15,420)       3,527      (12,237) 
 
Liabilities 
 
Non-Current Liabilities 
 
Shareholders loan                                 13,779       8,502         8,676 
 
Total Non-Current Liabilities                     13,779       8,502         8,676 
 
Current Liabilities 
 
Trade and Other Payables                          12,399       9,759        15,728 
 
Amount Due to Directors                              551          71           304 
 
Deposits Received                                    175         382           111 
 
Total Current Liability                           13,126      10,212        16,143 
 
Total Liabilities                                 26,904      18,714        24,819 
 
Total Equity and Liabilities                      11,484      22,241        12,582 
 
 
 
Interim Condensed Cash Flow Statement 
 
                                                    GVMH         GVMH         GVMH 
                                                6 Months     6 Months For the year 
                                                   ended        ended     ended 31 
                                  Notes     30 June 2019 30 June 2018     December 
                                                                              2018 
 
                                                 HK$'000      HK$'000      HK$'000 
 
Cash flows from operating 
activities 
 
Operating loss                                   (8,164)     (20,745)     (33,062) 
 
Add: Depreciation                                  1,708        2,008        3,982 
 
Add: Finance Cost on                                  74          141          316 
Shareholders loan 
 
Add: Non Cash Successful fee                           -        6,972        7,024 
 
Add: Share based payment                                                     1,447 
 
Add: Premium on reverse                                         5,259        5,259 
acquisition 
 
Changes in working capital 
 
(Increase) / decrease in                             712          403        1,119 
inventories 
 
(Increase) / decrease in                         (1,787)          120        1,270 
receivables 
 
Decrease in deposits and                             677            -        7,857 
prepayments 
 
Increase / (decrease) in                           2,133      (5,432)        2,848 
payables 
 
(Increase)/Decrease in amount                          -            -          257 
due from related companies 
 
Net cash flow from operating                     (4,647)     (11,274)     (17,397) 
activities 
 
Investing Activities 
 
Payments for Purchase of Property, Plant            (12)         (34)         (47) 
and equity 
 
Acquisition Net of Bank Balance                                 6,032        6,032 
 
Net cash flow from investing activities             (12)        5,998        5,985 
 
Cash flows from financing activities: 
 
(Repayment of) / proceeds from Shareholder         5,029        2,500        2,500 
loans 
 
Net proceeds from issue of shares          6           -        6,978        6,714 
 
Net proceeds from share premium                        -        3,489        3,357 
 
Net cash flow from financing activities            5,029       12,967       12,571 
 
Net cash flow for the period                         370        7,691        1,159 
 
Opening Cash and cash equivalents                  2,552        1,136        1,136 
 
Effect on Foreign exchange rate changes            (170)        (135)          257 
 
Closing Cash and cash equivalents                  2,752        8,692        2,552 
 
 
 
Notes to the Interim Condensed Financial Statements 
 
1.         General Information 
 
GRAND VISION MEDIA HOLDINGS PLC ('the Company') is an investment 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 2018. 
 
2.         Basis of Preparation 
 
These unaudited condensed consolidated interim financial statements for the six 
months ended 30 June 2019 were approved by the board and authorised for issue 
on 27 September 2019. 
 
The basis of preparation and accounting policies set out in the Annual Report 
and Accounts for the period ended 31 December 2018 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 2019 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 2019 and 30 June 2018 are 
unaudited and do not constitute full accounts. The comparative figures for the 
period ended 31 December 2018 are extracts from the 2018 audited accounts.  The 
independent auditor's report on the 2018 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 2018 to 30 June 2018 and post reverse. 
 
Standards and Interpretations adopted with no material effect on financial 
statements 
 
In the current year, the Group, for the first time, has applied IFRS 16 Leases. 
IFRS 16 introduces new or amended requirements with respect to lease 
accounting. It introduces significant changes to the lessee accounting by 
removing the distinction between operating and finance leases and requiring the 
recognition of a right-of-use asset and a lease liability at the lease 
commencement for all leases, except for short-term leases and leases of low 
value assets. In contrast to lessee accounting, the requirements for lessor 
accounting have remained largely unchanged. The impact of the adoption of IFRS 
16 on the Group's consolidated financial statements is described below. The 
Group has applied IFRS 16 using the Modified retrospective approach. 
 
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 social media marketing and operates in the Peoples Republic of China. 
 
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 2019 was HK$ 
1,052,293 (2018: 
loss of HK$ 874,844, year ended 31 December 2018: HK$ 10,810,849). The current 
period operating loss incorporated the following main items: 
 
                                                   GVMH          GVMH            GVMH 
                                           30 June 2019  30 June 2018     31 December 
                                                                                 2018 
 
                                            (Unaudited)   (Unaudited)       (Audited) 
 
                                                HK$'000       HK$'000         HK$'000 
 
Accounting and administration fees                   79             9             165 
 
Employment expenses                                 732             8             816 
 
Rent fees                                             -             3              47 
 
Legal and professional fees                          49             5             147 
 
Listing costs                                       115           831           9,082 
 
Other expenses                                       77            19             554 
 
Total                                             1,052           875          10,811 
 
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          GVMH          GVMH 
                                                 30 June       30 June   31 December 
                                                    2019          2018          2018 
                                             (Unaudited)   (Unaudited)     (Audited) 
 
                                                     HK$           HK$           HK$ 
 
Loss after tax                               (8,348,000)  (20,699,000)  (33,069,000) 
 
Weighted average number of ordinary shares    96,287,079    13,234,439    96,287,079 
in issue 
 
Basic and diluted loss per share                 (0.089)        (1.56)        (0.34) 
 
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          Number of      Share      Share      Share      Share 
fully paid ordinary  shares         shares    Capital    Capital    Premium    Premium 
of 10p each 
 
                                                    GBP        HK$          GBP        HK$ 
 
Balance at 26 February 2016     50,000,000     50,000    518,150          -          - 
 
Balance at 30 June 2016         50,000,000     50,000    518,150          -          - 
 
Share issue - 2 August 2016     60,000,000     60,000    621,780          -          - 
 
Consolidate shares - 3       (108,900,000)          -          -          -          - 
August 2016 
 
Balance at 31 December 2016      1,100,000    110,000  1,139,930          -          - 
 
Share issue - 10 January         5,130,000    513,000  5,316,219    257,000  2,663,291 
2017 
 
Balance at 30 June 2018          6,230,000    623,000  6,456,149    257,000  2,663,291 
 
After Acquisition Share 19      90,057,079  9,005,708 93,326,151  4,502,854 46,663,075 
June 2018 
 
Balance at 31 December 2018     96,287,079  9,628,708 99,782,300  4,759,854 49,326,366 
 
Balance at 30 June 2019         96,287,079  9,628,708 99,782,300  4,759,854 49,326,366 
 
 
7          Events Subsequent to 30 June 2019 
 
On 19 July 2019, GVMH issued convertible loan notes of GBP670k. 
 
8            Reverse Acquisition 
 
The reverse acquisition occurred just prior to the period end 30 June 2018 and 
the consolidated numbers of GVC Holdings Limited are presented below for 
illustration purposes only: 
 
Income statement 
 
                                                              GVCH                 GVCH 
                                                    6 months Ended       6 months Ended 
                                                           30 June              30 June 
                                                              2019                 2018 
 
                                                           HK$'000              HK$'000 
 
Turnover                                                     7,886                7,415 
 
Cost of Sales                                              (6,571)              (4,166) 
 
Gross Profit                                                 1,315                3,249 
 
Other Income / Expenditure                                     168                   62 
 
Administrative expenses                                    (6,813)              (7,907) 
 
EBITDA                                                     (5,330)              (4,596) 
 
Finance Cost                                                  (73)                (141) 
 
Depreciation                                               (1,708)              (2,008) 
 
Loss before taxation                                       (7,111)              (6,745) 
 
Tax on loss on ordinary activities                               -                    - 
 
Loss after taxation                                        (7,111)              (6,745) 
 
Exchange difference arising on Translation 
                                                             (495)                    - 
 
Loss and total comprehensive loss for the 
period                                                     (7,606)              (6,745) 
 
(Loss)/profit attributable to: 
 
Equity holders of the Company                              (7,294)              (6,699) 
 
Non-controlling interests                                      183                 (47) 
 
                                                           (7,111)              (6,745) 
 
Total comprehensive (loss)/income 
attributable to: 
 
Equity holders of the Company                              (7,789)              (6,699) 
 
Non-controlling interests                                      183                 (47) 
 
                                                           (7,606)              (6,745) 
 
Basic and diluted earnings per share (HK$)                   (588)                (540) 
 
 
 
Balance Sheet                                                  GVCH               GVCH 
                                                            30 June            30 June 
                                                               2019               2018 
 
                                                            HK$'000            HK$'000 
 
Assets 
 
Non-Current Assets 
 
Property, plant and equipment                                   488              4,192 
 
Investment in Subsidiary                                          -                  - 
 
Total Non-Current Asset                                         488              4,192 
 
Current assets 
 
Inventories                                                     994              2,403 
 
Trade and Other Receivables                                   6,890              3,845 
 
Deposits and Pre-Payments                                       313                803 
 
Cash and Cash Equivalents                                     2,681              2,660 
 
 Total Current Assets                                        10,878              9,711 
 
Total Assets                                                 11,366             13,903 
 
Equity and Liabilities 
 
Share Capital                                                   106                106 
 
Share Premium Account                                        30,368             30,368 
 
Group Re-organization Reserve                               (9,059)            (9,059) 
 
Capital Contribution arising from Shareholder's Loan            844                844 
 
Exchange Reverses                                               597               (77) 
 
Non-Controlling Interest                                    (3,226)            (3,464) 
 
Retained Earnings                                          (45,590)           (28,617) 
 
Total Equity                                               (25,960)            (9,899) 
 
Liabilities 
 
Non-Current Liabilities 
 
Shareholders loan                                            12,750              8,501 
 
Total Non-Current Liabilities                                12,750              8,501 
 
Current Liabilities 
 
Trade and Other Payables                                     11,129              9,216 
 
Amount due to GVMH                                           12,720              5,632 
 
Amount Due to Directors                                         552                 71 
 
Deposits Received                                               175                382 
 
Total Current Liability                                      24,576             15,301 
 
Total Liabilities                                            37,326             23,802 
 
Total Equity and Liabilities                                 11,366             13,903 
 
9.         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/ 
 
Edward Kwan-Mang Ng, 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 enquiries@alfredhenry.com 
 
 
                                   - ENDS - 
 
 
 
END 
 

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