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Share Name Share Symbol Market Type Share ISIN Share Description
Honye Financial Services Limited LSE:HOYE London Ordinary Share KYG4598W1024 ORD 1P (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 45.00 40.00 50.00 45.00 45.00 45.00 0.00 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 0.0 -0.7 -5.4 - 11

Honye Financial Services Ltd Half-year Report

28/04/2020 4:21pm

UK Regulatory (RNS & others)


Honye Financial Services (LSE:HOYE)
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TIDMHOYE

RNS Number : 2130L

Honye Financial Services Ltd

28 April 2020

28 April 2020

Honye Financial Services Ltd

Half-Yearly results for the period ended 31 January 2020

Honye Financial Services Ltd announces its half-yearly results for the six months ended 31 January 2020.

CHAIRMAN'S STATEMENT

We recently published our annual report and accounts for the year ended 31 July 2019 and sent notice to shareholders of the Annual General Meeting of Honye Financial Services Limited ("the Company") which is to be held on 4(th) May 2020.

On 7(th) April 2020 the Company announced the appointment of Yu Xing Liu to the Board. Mr Liu's appointment will enlarge our network of contacts and enhance the Board's ability to source and assess potential investments.

The Corona Virus continues to disrupt the world ' s businesses and the Lockdown in the UK has dramatically slowed economic activity here. There is light at the end of the tunnel as we see China beginning to return to normal after several months and there are tentative steps in Italy, Austria and Denmark to slowly lift restrictions allowing people to return to work.

Your Board throughout this period has continued to review possible investments and acquisitions and hope to identify one sufficiently attractive for the Company to acquire or invest in the next few months.

Financial review

The loss for the period to 31 January 2020 was GBP 143,380.

The loss per share was GBP0.0058.

At 31 January 2020, the Company had cash of GBP 1.7 million

Dividends

The Directors do not propose a dividend for the period ended 31 January 2020.

Gareth Edwards

Non-Executive Chairman

Honye Financial Services Ltd

28 April 2020

 
 CONDENSED STATEMENT OF COMPREHENSIVE 
  INCOME 
                                                     6 months ended   25/04/2018 
                                                      31/01/2020       to 
   Continuing operations                      Note    Unaudited        31/01/2019 
                                                      GBP              Unaudited 
 
                                                                       GBP 
 Administrative expenses                             (160,943)        (588,459) 
                                                    ---------------  -------------- 
 Operating loss                                      (160,943)        (588,459) 
                                                    ---------------  -------------- 
 
 Loss before taxation                                (160,943)        (588,459) 
                                                    ---------------  -------------- 
 
   Taxation                                   9        -                - 
                                                    ---------------  -------------- 
 
   Total comprehensive loss attributable 
   to equity holders of the Company 
   for the period                                      (160,943)        (588,459) 
                                                    ---------------  -------------- 
 
 
   Loss per share - basic and diluted 
   (pence per share)                          10       0.65             2.38 
 

CONDENSED STATEMENT OF FINANCIAL POSITION

 
 
                                 Note   As at        As at 
                                        31/01/2020   31/07/2019 
                                        Unaudited 
                                        GBP          GBP 
 Assets 
  Current assets 
 Cash and cash equivalents       11     1,741,650    1,863,098 
                                       -----------  ----------- 
 Total current assets                   1,741,650    1,863,098 
                                       -----------  ----------- 
 Total assets                           1,741,650    1,863,098 
                                       -----------  ----------- 
 
   Equity and liabilities 
 Capital and reserves 
  attributable to owners 
  of the company 
 Ordinary shares                 13     246,414      246,414 
 Share premium                          2,248,692    2,248,692 
 Accumulated losses                     (839,138)    (678,195) 
                                       -----------  ----------- 
 Total equity                           1,655,968    1,816,911 
                                       -----------  ----------- 
 
   Current liabilities 
 Trade and other payables        12     85,682       46,187 
                                       -----------  ----------- 
 Total current liabilities              85,682       46,187 
                                       -----------  ----------- 
 Total equity and liabilities           1,741,650    1,863,098 
                                       -----------  ----------- 
 
 
  CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE PERIODED 31 JANUARY 2020 
 
   Note                                Share       Share            Accumulated      Total 
                                       capital     premium          Losses           equity 
                                     GBP         GBP               GBP             GBP 
 Balance at 1 August 2019 
  13                                 246,414     2,248,692          (678,195)      1,816,911 
 Total comprehensive loss 
  for 
  the financial period               -           -                 (160,943)       (160,943) 
 Balance at 31 January 2020 
  (Unaudited)                         246,414     2,244,692         (839,138)       1,655,968 
 
 
   FOR THE PERIODED 31 JANUARY 2019 
                                     Share       Share             Accumulated     Total 
                                      capital     premium           Losses          equity 
                                     GBP         GBP               GBP             GBP 
 Issue of shares on incorporation 
  on 
  25 April 2018                      35,970      -                 -               35,970 
 Share capital repurchase            (35,970)    -                 -               (35,970) 
 Issue of new share capital 
  on admission subscription          246,414     2,248,692                         2,495,106 
 Total comprehensive loss 
  for the 
  financial period                   -           -                 (588,459)       (588,459) 
 Balance at 31 January 2019 
  (Unaudited)                        246,414     2,248,692         (588,459)       1,906,647 
 
 
 
 CONDENSED STATEMENT OF CASH FLOWS 
 
 
                                                 6 Months Ended      25/04/2018 
                                                 31/01/2020          to 
                                                 Unaudited           31/01/2019 
                                                                     Unaudited 
                                                GBP                GBP 
 Cash flows from operating activities 
 Loss before taxation 
  Adjustment for:                               (160,943)          (588,459) 
 Increase in payables                           39,495             169,908 
                                               -----------------  ------------- 
 Net cash used in operating activities          (121,448)          (418,551) 
                                               -----------------  ------------- 
 
   Cash flows from financing activities 
   and in 
   condensed interim report 
 Proceeds from issue of ordinary 
  shares                                        -                  2,495,106 
                                               -----------------  ------------- 
 Net cash generated from financing 
  activities                                    -                  2,495,106 
                                               -----------------  ------------- 
 
   Net decrease in cash and cash equivalents      (121,448)          2,076,555 
 Cash and cash equivalents at beginning         1,863,098          - 
  of the period 
                                               -----------------  ------------- 
 
   Cash and cash equivalents at end 
   of the period                                  1,741,650          2,076,555 
                                               -----------------  ------------- 
 
 

NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS

GENERAL INFORMATION

The Company was incorporated and registered in the Cayman Islands as a private company limited by shares on 25 April 2018 under the Companies Law (as revised) of The Cayman Islands, with the name Honye Financial Services Limited, and registered number 336262.

The Company ' s registered office is located at Ogier Global (Cayman) Limited, 89 Nexus Way, Camana Bay, Grand Cayman, KY1-9901, Cayman Islands.

PRINCIPAL ACTIVITIES

The principal activity of the Company is to seek acquisition opportunities.

RECENT ACCOUNTING PRONOUNCEMENT

New interpretations and revised standards effective for the period ended 31 January 2020

The Company has applied the same accounting policies and methods of computation in its interim financial statements as in its 2019 annual financial statements, except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 January 2020, and will be adopted in the 2020 annual financial statements. New standards impacting the Company in the annual financial statements for the year ending 31 July 2020, and which have given rise to changes in the Company ' s accounting policies are:

IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (Amendment - Definition of Material)

IFRS 3 Business Combinations (Amendment - Definition of Business)

Revised Conceptual Framework for Financial Reporting

The Directors do not believe these standards and interpretations will have a material impact on the financial statements once adopted.

Standards and interpretations in issue but not yet effective

There are a number of standards and interpretations which have been issued by the International Accounting Standards Board that are effective for periods beginning subsequent to 31 July 2020 (the date on which the company ' s next annual financial statements will be prepared up to) that the Company has decided not to adopt early. The Directors do not believe these standards and interpretations will have a material impact on the financial statements once adopted.

SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation

These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union and prepared under the historic cost convention. The comparative figures as at 31 July 2019 have been extracted from the Company ' s Financial Statements for that financial year, but do not constitute these accounts.

The financial information is presented in Pounds Sterling ( GBP ), which is the Company ' s functional currency. A summary of the principal accounting policies of the Company are set out below.

b) Going concern

The Company meets its day-to-day working capital requirements through cash generated from the capital it has raised on admission to the London Stock Exchange and subsequently it has GBP 1.7 million in cash as at 31 January 2020 which is sufficient for its present needs. The Company is likely to need to raise additional funds for planned acquisitions and this will likely be obtained through further transactions through the market.

Taking its cash position into account, the Directors are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future and for a period of not less than 12 months from the date of signing the financial statements. Thus they continue to adopt the going concern basis of accounting in preparing the interim financial statements.

c) 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.

d) Financial instruments

A financial asset or a financial liability is recognised only when the Company becomes a party to the contractual provisions of the instrument. 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.

Financial assets

All financial assets are recognised and derecognised on a trade date where the purchase or sale of a financial asset is under a contract whose terms require delivery of the financial asset within the timeframe established by the market concerned, and are initially measured at fair value.

Financial assets are subsequently classified into the following specified categories: Financial assets measured at fair value through profit and loss (FVTPL), Financial assets measured at amortised cost and Financial assets measured at fair value through other comprehensive income .The Company's financial assets measured at amortised cost comprise cash and cash equivalents in the statement of financial position.

Financial liabilities

The Company ' s financial liabilities include 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 obligation are discharged, cancelled or they expire.

e) Cash and cash equivalents

Cash and cash equivalents include 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.

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.

FINANCIAL RISK MANAGEMENT

Objectives and policies

The Company is exposed to a variety of financial risks: market 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.

b) Currency risk

Currency risk is not considered to be material to the Company as majority of bank transactions were incurred in Pounds Sterling ( GBP).

c) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.

Concentrations of credit risk exist to the extent that the Company ' s cash were all held with DBS Bank. Per Standard & Poor ' s - the Short Term Deposit Rating is A-1+.

d) 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.

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 the 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.

Honye Financial Services Limited has no activities at present other than reviewing possible investment opportunities.

D IRECTORS ' EMOLUMENTS

 
                                                             6 months                    25/04/2018 
                                                              ended 31/01/2020            to 
                                                              GBP                         31/01/2019 
                                                                                          GBP 
 Key management emoluments 
 Remuneration                                                58,000                      16,317 
                                                            ----------------------      ------------ 
 
 
 The annual remuneration of the key management 
  was as follows, with no other cash or non-cash 
  benefits. 
                                                                                         GBP 
 Executive Directors 
 Wanbao Xu                                                                               50,000 
                                                                                        ------------ 
 
 Non-executive 
  Directors 
 Gareth Edwards                                                                          30,000 
                                                                                        ------------ 
 Shaun Carew-Wootton                                                                     24,000 
                                                                                        ------------ 
 
 

Included within accruals is GBP 18,223, which relates to unpaid directors ' remuneration.

TAXATION

The Company is incorporated in the Cayman Islands, and its activities are subject to taxation at a rate of 0%.

EARNINGS PER SHARE

The Company presents basic and diluted earnings per ordinary share information for its ordinary shares. Basic earnings per share is calculated by dividing the loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares in issue during the reporting period.

There is no difference between the basic and diluted loss per share.

 
      6 months ended                                            25/04/2018 to 
       31/01/2020                                                31/01/2019 
 
 
  Loss attributable to ordinary shareholders 
  (GBP)                                             (160,943)     (588,459) 
 Weighted average number of shares                24,641,350    24,641,350 
                                                 ------------  -------------- 
 Losses per share (expressed as pence 
  per share)                                      (0.65)        (2.39) 
 
 

CASH AND CASH EQUIVALENTS

 
 Cash at bank equivalents             31/01/2020      31/07/2019 
                                      GBP                                       GBP 
                                      1,741,650       1,863,098 
                                     --------------  ---------------------------------- 
 
   Cash at bank earns interest at floating rates 
   based on daily bank deposit rates. 
 
 

TRADE AND OTHER PAYABLES

 
                   31/01/2020   31/07/2019 
                   GBP          GBP 
 Other payables    85,682       46,187 
                  -----------  ----------- 
 

SHARE CAPITAL

 
                                          Number          Nominal 
                                                           Value 
                                                           GBP 
 
       Authorised 
  Ordinary shares of GBP0.01 each         1,000,000,000   10,000,000 
 
       Issued and fully paid 
       On Admission - 24,641,350 
        shares of GBP0.01 each 
        As at 31 January 2020 and 
        31 July 2019                        24,641,350      246,414 
                                         --------------  ----------- 
 
 

The Company was incorporated and registered in The Cayman Islands as a private company limited by shares on 25 April 2018. On incorporation, the Company had an authorised share capital of US$50,000 divided into 50,000 ordinary shares of a par value of US$1 each. This has been converted to Pounds Sterling ( GBP ) using the closing exchange rate GBP /US$ 1.39 on the date of incorporation on 25 April 2018.

Pursuant to special resolution passed on 29th November 2018, the Company resolved:

to redenominate its share capital from US$ to GBP;

to increase its authorised share capital to GBP 10,000,000 divided into 1,000,000,000 Ordinary Shares ( GBP 0.01 each at Par value);

a further 50,000 Ordinary Shares were issued for $50,000, the proceeds of which were used to buy back the 50,000 shares of US$1 each at Par value in connection with redenomination of share capital.

As at admission on 7 December 2018, GBP 246,414 of Ordinary Shares in nominal value has been issued and fully paid (divided into 24,641,350 issued Ordinary Shares of GBP 0.01 each at Par value).

All of the issued Ordinary Shares are in registered form and the Registrar is responsible for maintaining the Company ' s share register. There are no restrictions on the distribution of dividends and the repayment of capital.

The ISIN number of the Ordinary Shares is KYG4598W1024 and SEDOL number is BGR5JO2.

SUBSEQUENT EVENTS

In April 2020, a warrant was exercised and 30,000 Ordinary Shares have been subscribed at 15p each.

There have been no other material events that have occurred since the year end that require further disclosure.

CAPITAL MANAGEMENT

The Company actively manages the capital available to fund the Company, comprising equity and reserves. The Company ' s objectives when maintaining capital is to safeguard the entity ' s ability to continue as a going concern, so that it can continue to provide returns for shareholders.

The capital structure of the Company as at 31 January 2020 consisted of Ordinary Shares and equity attributable to the shareholders of the Company, totalling GBP 1,655,968 (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.

RELATED PARTY TRANSACTIONS

The remuneration of the Directors, the key management personnel of the Company, is set out in note 8.

Fush Financial Investment Co Ltd, a company owned by Mr Wanbao Xu, is considered as a significant shareholder by holding 68.53% of the Ordinary shares as at 31 January 2020.

ULTIMATE CONTROLLING PARTY

The ultimate controlling party of the Company is Mr Wanbao Xu.

 
 Enquiries: 
 Honye Financial Services Ltd   garethmedwards@gmail.com 
  Gareth Edwards 
 Peterhouse Capital Limited     Tel: 020 7469 0933 
  Heena Karani 
 
 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR BUGDSXBDDGGI

(END) Dow Jones Newswires

April 28, 2020 11:21 ET (15:21 GMT)

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