Half-year Results
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Grand Vision Media Holdings plc announces its half year report for the six months ended 30 June 2024.
The CEO’s Report
Overview
The first half of 2024 is recovering slower than expected due to weak RMB and the volatile global situation. The economy of Hong Kong was also adversely impacted by the global uncertainty.
However, with the decrease in USA interest rates and China monetary and fiscal policy initiatives to aid the recovery, we are more bullish about the 2nd half of the year.
Summary of Trading Results
Revenue in the period was HKD1,878K [2023 : HKD2,272K], which represents a decrease of 17.34%. The Group had a loss after tax of HKD2,288K [2023 : HKD1,970K]. The Group continued its focus on cost controls whilst exploring alternative revenue streams.
Outlook
We are positive about the overall outlook for 2024 despite a slower first half of the year. Some of the new revenue streams from our opening up of commodity marketing will see positive results in the coming quarter. The overall recovery of the travel market in China and the strengthening RMB will boost the marketing budgets for many of our clients. New partnerships in Europe and South East Asia will also help lessen our dependence on Mainland China market.
GRAND VISION MEDIA HOLDINGS PLC (“THE GROUP”)
Jonathan Lo
Chief Executive Officer
Date : 27 September 2024
Interim Condensed Statement of Comprehensive Income
| Notes | GVMH 6 months Ended 30 June 2024 (unaudited) | GVMH 6 months Ended 30 June 2023 (unaudited) | GVMH Year End 31 December 2023 (audited) | |||||
|---|---|---|---|---|---|---|---|---|
| HK$’000 | HK$’000 | HK$’000 | ||||||
| Turnover | 1,878 | 2,272 | 5,962 | |||||
| Cost of Sales | (1,365) | (1,547) | (4,210) | |||||
| Gross Profit | 513 | 725 | 1,752 | |||||
| Other Income / Expenditure | (1) | (12) | (7) | |||||
| Administrative expenses | (2,503) | (2,381) | (5,640) | |||||
| Depreciation | (293) | (292) | ||||||
| Operating Loss | 2284 | (1,960) | (3,895) | |||||
| Finance Cost | (4) | (10) | (18) | |||||
| Loss before taxation | (2,288) | (1,970) | (3,913) | |||||
| Tax on ordinary activities | - | - | - | |||||
| Loss after taxation | (2,288) | (1,970) | (3,913) | |||||
| Exchange difference arising on Translation | (162) | (670) | (349) | |||||
| Loss and total comprehensive loss for the period | (2,450) | (2,640) | (4,262) | |||||
| Loss attributable to: | ||||||||
| Equity holders of the Company | (2,129) | (1,945) | (3,793) | |||||
| Non-controlling interests | (159) | (25) | (121) | |||||
| (2,288) | (1,970) | (3,913) | ||||||
| Total comprehensive loss attributable to: | ||||||||
| Equity holders of the Company | (2,291) | (2,615) | (4,121) | |||||
| Non-controlling interests | (159) | (25) | (121) | |||||
| (2,450) | (2,640) | (4,262) | ||||||
| Basic and diluted earnings per share (HK$) | 5 | (0.02) | (0.02) | (0.04) | ||||
| 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 2022 (audited) | 96,017 | 44,106 | (100,031) | 844 | 6,895 | (473) | (87,943) | (40,585) |
| Exchange Reserve | - | - | - | - | (1,066) | - | - | (1,066) |
| Non-Controlling Interest | - | - | - | - | - | (25) | - | (25) |
| Loss for the period | - | - | - | - | - | - | (1,945) | (1,945) |
| Balance at 30 June 2023 (unaudited) | 96,017 | 44,106 | (100,031) | 844 | 5,829 | (498) | (89,888) | (43,621) |
| Exchange Reserve | - | - | - | - | (85) | - | - | (85) |
| Lapse of the share option | - | - | - | - | (975) | - | 975 | - |
| Non-Controlling Interest | - | - | - | - | - | (95) | - | (95) |
| Loss for the period | - | - | - | - | - | - | (1,848) | (1,848) |
| Balance at 31 December 2023 (audited) | 96,017 | 44,106 | (100,031) | 844 | 4,769 | (593) | (90,761) | (45,649) |
| Exchange Reserve | - | - | - | - | 115 | - | - | 115 |
| Lapse of the share option | - | - | - | - | - | - | - | - |
| Non-Controlling Interest | - | - | - | - | - | (159) | - | (159) |
| Loss for the period | - | - | - | - | - | - | (2,129) | (2,129) |
| Balance at 30 June 2024 (unaudited) | 96,017 | 44,106 | (100,031) | 844 | 4,884 | (752) | (92,890) | (47,822) |
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 2024 (unaudited) | GVMH 30 June 2023 (unaudited) | GVMH 31 December 2023 (audited) | |
|---|---|---|---|---|
| HK$’000 | HK$’000 | HK$’000 | ||
| Assets | ||||
| Non-Current Assets | ||||
| Property, plant and equipment | 14 | 8 | 20 | |
| Right of use assets (IFRS16) | 240 | 815 | 527 | |
| Total Non-Current Asset | 254 | 823 | 547 | |
| Current assets | ||||
| Trade and Other Receivables | 1,448 | 1,119 | 1399 | |
| Deposits and Pre-Payments | 167 | 171 | 234 | |
| Cash and Cash Equivalents | 4 | 136 | 291 | |
| Total Current Assets | 1,619 | 1,426 | 1,925 | |
| Total Assets | 1,873 | 1,249 | 2,472 | |
| Equity and Liabilities | ||||
| Share Capital | 6 | 96,017 | 96,017 | 96,017 |
| Share Premium Account | 6 | 44,106 | 44,106 | 44,106 |
| Group Re-organization Reserve | (100,031) | (100,031) | (100,031) | |
| Capital Contribution arising from Shareholder’s Loan | 844 | 844 | 844 | |
| Exchange and Other Reverses | 4,884 | 5,829 | 4,769 | |
| Non-Controlling Interest | (752) | (498) | (593) | |
| Accumulated deficit | (92,890) | (89,888) | (90,761) | |
| Total Equity | (47,822) | (43,621) | (45,649) | |
| Liabilities | ||||
| Non-Current Liabilities | ||||
| Convertible Bonds | 5,563 | 5,611 | 5,601 | |
| Shareholders loans | 967 | 9,725 | 974 | |
| Total Non-Current Liabilities | 6,530 | 15,336 | 6,575 | |
| Current Liabilities | ||||
| Trade and Other Payables | 15,420 | 14,190 | 14,699 | |
| Amount Due to Directors | 6,069 | 3,787 | 4,926 | |
| Lease Liability | 244 | 820 | 533 | |
| Deposits Received | 45 | - | 1 | |
| Shareholder loan | 21,387 | 11,737 | 21,387 | |
| Total Current Liability | 43,165 | 30,534 | 41,546 | |
| Total Liabilities | 49,695 | 45,870 | 48,121 | |
| Total Equity and Liabilities | 1,873 | 2,249 | 2,472 | |
| Interim Condensed Cash Flow Statement | ||||
| GVMH 6 Months Ended 30 June 2024 (unaudited) | GVMH 6 Months Ended 30 June 2023 (unaudited) | GVMH For the year ended 31 December 2023 (audited) | ||
| HK$’000 | HK$’000 | HK$’000 | ||
| Cash flows from operating activities | ||||
| Operating loss | (2,288) | (1,970) | (3,913) | |
| Add: Depreciation | 293 | 292 | 585 | |
| Add: Finance Cost | 4 | 10 | 17 | |
| Changes in working capital | (1,991) | (1,668) | (3,311) | |
| Increase in receivables | (49) | (141) | (421) | |
| (Increase) / Decrease in deposits and prepayments | 67 | 45 | (18) | |
| Increase in payables | 721 | 1,473 | 1,982 | |
| Increase / (Decrease) in deposit received | 44 | (79) | (78) | |
| Net cash flow used in operating activities | (1,208) | (370) | (1,846) | |
| Cash flows from investing activities: | ||||
| Payment for purchase of property, plant and equipment | - | - | (17) | |
| Net cash outflow from investing activities | - | - | (17) | |
| Cash flows from financing activities: | ||||
| Payment of lease liabilities | (289) | (294) | (589) | |
| Increase in an amount due to directors | 1,143 | 274 | 1,413 | |
| (Repayment of) / Proceeds from Shareholder loans | (48) | 1,334 | 2,223 | |
| Net cash generated from financing activities | 806 | 1,314 | 3,047 | |
| Net cash outflow for the period | (402) | 944 | 1,184 | |
| Opening Cash and cash equivalents | 291 | 258 | 258 | |
| Effect on Foreign exchange rate changes | 115 | (1,066) | (1,151) | |
| Closing Cash and cash equivalents | 4 | 136 | 291 | |
Notes to the Interim Condensed Financial Statements
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 year ended 31 December 2023.
Basis of Preparation
The basis of preparation and accounting policies set out in the Annual Report and Accounts for the year ended 31 December 2023 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 2024 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 2024 and 30 June 2023 are unaudited and do not constitute full accounts. The comparative figures for the year ended 31 December 2023 are extracts from the 2023 audited accounts. The independent auditor’s report on the 2023 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 2024 to 30 June 2024 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.
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.
Company Result for the period
The operating loss of the Company for the six months ended 30 June 2024 was HK$607k (2023:
loss of HK$412k, year ended 31 December 2023: HK$445k). The current period operating loss incorporated the following main items:
| Company GVMH 30 June 2024 | Company GVMH 30 June 2023 | Company GVMH 31 December 2023 | |
|---|---|---|---|
| (unaudited) | (unaudited) | (audited) | |
| HK$‘000 | HK$‘000 | HK$‘000 | |
| Employment expenses | 297 | 289 | 583 |
| Legal and professional fees | 310 | 117 | 420 |
| Other expenses | - | 6 | (558) |
| Total | 607 | 412 | 445 |
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.
| GVMH 30 June 2024 (unaudited) | GVMH 30 June 2023 (unaudited) | GVMH 31 December 2023 (audited) | |
|---|---|---|---|
| HK$ | HK$ | HK$ | |
| Loss after tax | (2,288,000) | (1,970,000) | (3,913,000) |
| 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) | (0.02) | (0.04) |
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.
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 2022 (audited) | 96,287,079 | 9,628,708 | 96,017,186 | 4,422,954 | 44,105,565 |
| Balance at 30 June 2023 (unaudited) | 96,287,079 | 9,628,708 | 96,017,186 | 4,422,954 | 44,105,565 |
| Balance at 31 December 2023 (audited) | 96,287,079 | 9,628,708 | 96,017,186 | 4,422,954 | 44,105,565 |
| Balance at 30 June 2024 (unaudited) | 96,287,079 | 9,628,708 | 96,017,186 | 4,422,954 | 44,105,565 |
Events Subsequent to 30 June 2024
There were no events subsequent to the balance sheet date.
Reports
This interim condensed financial statements will be available shortly on the Company website at www.gvmh.co.uk
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