Sealand Capital Galaxy Limited Half-year Report (5347D)

TIDMSCGL

RNS Number : 5347D

Sealand Capital Galaxy Limited

29 October 2020

Strictly embargoed until: 07.00, 29(th) October 2020

Sealand Capital Galaxy Limited (LSE: SCGL)

Unaudited Interim Results for the six months ended 30 June 2020

Sealand Capital Galaxy Limited (LSE: SCGL) announces unaudited Interim Results for the six months ended 30 June 2020 with respect to the Company and its subsidiaries (the "Group"). The Interim Results are available to view on the Company's website at http://scg-ltd.com/.

Nelson Law, Executive Chairman commented:

"Although 2020 started more positively, as China recovered from the effects of COVID-19, the rest of the world was impacted substantially, affecting our overseas subsidiaries. Travel to and from most countries and particularly China had all but ceased.

"We are however encouraged by the signs of economic recovery in Asia ahead of much of the world and an increased demand for digital solutions which economic and other commentators believe will outlast the passing of the pandemic.

"In an ever increasingly connected world, a process sped up further by COVID-19, the e-commerce bridges we are building between UK merchants and Chinese consumers seem more apposite than ever before.

Operational and Financial Highlights:

-- Revenues increased by 130% to GBP276,648 (2019: GBP119,984), despite COVID-19 and major disruption in Hong Kong due to the Government protests

   --    Reduced loss for the period attributable to shareholders of GBP383,625 (2019: GBP496,957) 

-- The Group increased its holding in its digital marketing and advertising subsidiary New Sky Global Media Limited ("NSG") from 55% to 75%

-- NSG continued to generate revenues from its contract to create and manage an account on Douyin (also known as TikTok) for Suncity Group Leisure Services Limited in China ("Suncity").

-- NSG secured a 12 month extension to its contract to promote the Hoiana Suncity Resort in Vietnam.

-- NSG also won additional contracts to advertise Galaxy Macau and the StarWorld Hotel, Macau to build Galaxy Macau's brand image and promote the StarWorld Hotel's winter campaign.

-- NSG broadened its media channel coverage by becoming an authorised overseas agent of Southern Metropolis Weekly and Southern Metropolis Entertainment, both highly regarded Chinese media outlets, with a high income target audience.

-- The formation of a new joint venture with Tenet, Tengwuwang Holdings Limited ("Tengwuwang"), to create a new channel for foreign merchants to sell their goods and services into the Chinese market.

Post-period end developments:

-- ePurse business restructured to become a wholly-owned subsidiary of Tengwuwang in partnership with Qfang International Co. Limited ( " Qfang " ), a provider of a range of marketing, advertising and e-commerce services on a variety of Chinese and Southeast Asian digital platforms including Tmall International, Alimama AMP and Lazada.

-- Formation (with Famous Biotech Co. Limited) of a second joint venture company, Hyrax Holdings Limited ("Hyrax"), registered in Hong Kong and the sole distributor of cod fish maw products in China, Hong Kong and Macau.

-- ePurse signed a 24-month strategic partnership agreement with JM International ("JM") to help it develop and execute its ecommerce strategy for its Qiaohuajiao brand, including the launch of the first fish maw flagship store on Tmall and promotion of the brand to various Chinese media channels, generating strong brand awareness and healthy initial sales.

-- ePurse began signing British merchants to launch and sell their goods in China through Tmall stores in partnership with Qianfan.

Commenting on the current strategy for the Group, Nelson Law, Executive Chairman added:

"Taking into account the lack of travel, due to the global pandemic, we have begun to refocus the business. We are now leveraging our partner relationships with the likes of Tencent, Tenet and Alibaba and using our knowledge of digital and social media data, marketing, advertising and content generation to help overseas merchants access the huge Chinese market and sell their goods and services.

"We believe that our ability to offer commercial and logistical solutions to businesses who are faced with increased social distancing in a world that is certainly moving ever more rapidly towards online shopping and away from physical stores will be critical for the growth of the business.

"We are currently proactively pursuing a number of acquisition opportunities; as well as forming new JVs and developing our existing businesses to help us substantially scale the business and take advantage of the relationships and expertise that we have developed to date ."

-Ends-

 
  Enquiries: 
 Sealand Capital Galaxy Limited 
 Law Chung Lam Nelson, Executive    + 44 (0) 753 795 
  Chairman                           9788 
 N ovum Securities Limited 
                                    + 44 (0) 20 7399 
 David Coffman                       9400 
 

Notes to Editors:

The Company's Shares are traded on the Official List of the London Stock Exchange's main market for listed securities under the ticker SCGL.

   Further information on Sealand is available on its website   http://www.scg-ltd.com/ 

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October 29, 2020 03:00 ET (07:00 GMT)