Latest Results

Annual Results

Grand Group Investment PLC (AIM:GIPO), a provider of expansion capital and value added services to China-based SMEs with high growth potential, today announces its andited Final Results for the period from 1 January 2016 to 31 December 2016(the "period").

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Chairman's Statement

2016 was an eventful and challenging year. I refer you to the announcement of 30 September 2016 for a detailed explanation of the events leading to the delay in issuing both the 2015 audited financials and the 2016 interim statements.

As notified on 30 September 2016, the company disposed of its two investments: Victory and JXT. These disposals triggered paragraph 5.6 (sub-paragraph 2) of the AIM Note for Investing Companies, and as such the company became treated as an AIM Rule 15 cash shell. In accordance with AIM Rule 15, the company has until 30 September 2017, approximately 3 months from now, either to implement the current investing policy or to make an acquisition which would be considered a reverse takeover under the AIM Rules.  If the company is unable to do so it will be suspended again, this time pursuant to AIM Rule 40.

The company started 2017 with a virtually clean slate, having sold its investments. As of 2016 year end, proceeds from the sales of Victory and JXT investments have been coming in on time, and cash had grown to RMB 140.8 million. As of the end of April, funds continued to arrive on time and total (unaudited) cash was RMB 221.2 million – approximately £25 million. No new investments have yet been made with the proceeds.

The group has much to do in 2017 - notably finishing collecting the proceeds from the investment exits, but as importantly developing the pipeline of investment opportunities and investing by the September 30 deadline.

Outlook

As the US Federal Reserve continues to look to raise interest rates, there has been a significant impact on the Chinese investment market, causing many asset prices to return to more rational levels. This provides a great opportunity for Grand. The sales of Victory and JXT have bolstered Grand's cash reserves for future investments. Now that Grand has regained listed status on AIM, it is in a better position to make those investments.

 

James Newman
Non-Executive Chairman

 

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Statement of comprehensive income

GRAND GROUP INVESTMENT PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2016

 

 

31 December 2016

31 December 2015

 

Note

RMB’000

RMB’000

 

 

 

 

Unrealised loss on unquoted financial assets

8

-

(256,560)

Gain on disposal of unquoted financial assets

 

21,760

-

Investment income

 

-

19,800

Other income

 

500

-

Administrative expenses

 

(4,130)

(9,585)

Financial income/(expenses)

 

186

(13,138)

 

 

 

 

Profit /(Loss) before tax

 

18,316

(259,483)

Taxation

10

(4,579)

64,140

 

 

 

 

Profit /(Loss) after tax

 

13,737

(195,343)

 

 

 

 

Other comprehensive income

 

-

-

 

 

 

 

Total comprehensive profit /(loss) for the year

 

13,737

(195,343)

 

 

 

 

Attributable to:

 

 

 

Equity holders of the parent

 

13,737

(195,343)

Non-controlling interests

 

-

-

 

 

 

 

 

 

RMB

RMB

Earnings per share

12

 

 

Basic

 

0.40

(5.86)

Diluted

 

0.39

(5.86)

 

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Statement of financial position

GRAND GROUP INVESTMENT PLC

For the year ended 31 December 2016

 

Share

 

Share

Contributed

 

Warrants

Retained

 

Sub-

Non-
controlling

 

Total

 

capital

Premium

capital

reserve

earnings

Total

Interest

Equity

 

RMB’000

RMB’000

RMB’000

RMB’000

RMB’000

RMB’000

RMB’000

RMB’000

 

 

 

 

 

 

 

 

 

At 31 December 2014

10

-

196,000

-

204,975

400,985

-

400,985

Issued share capital

4

66,936

-

-

-

66,940

-

66,940

Issued warrants

-

-

-

13,283

-

13,283

-

13,283

Total comprehensive loss for the year

-

-

-

-

(195,343)

(195,343)

 

-

 (195,343)

Non- controlling interest

-

-

-

-

-

-

 

10

 

10

At 31 December 2015

14

66,936

196,000

13,283

9,632

285,865

10

285,875

Total comprehensive profit for the year

-

-

-

-

13,737

13,737

 

-

13,737

At 31 December 2016

14

66,936

196,000

13,283

23,369

299,602

10

299,612

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Statement of changes in equity

GRAND GROUP INVESTMENT PLC

For the year ended 31 December 2016

 

Share

 

Share

Contributed

 

Warrants

Retained

 

Sub-

Non-
controlling

 

Total

 

capital

Premium

capital

reserve

earnings

Total

Interest

Equity

 

RMB’000

RMB’000

RMB’000

RMB’000

RMB’000

RMB’000

RMB’000

RMB’000

 

 

 

 

 

 

 

 

 

At 31 December 2014

10

-

196,000

-

204,975

400,985

-

400,985

Issued share capital

4

66,936

-

-

-

66,940

-

66,940

Issued warrants

-

-

-

13,283

-

13,283

-

13,283

Total comprehensive loss for the year

-

-

-

-

(195,343)

(195,343)

 

-

 (195,343)

Non- controlling interest

-

-

-

-

-

-

 

10

 

10

At 31 December 2015

14

66,936

196,000

13,283

9,632

285,865

10

285,875

Total comprehensive profit for the year

-

-

-

-

13,737

13,737

 

-

13,737

At 31 December 2016

14

66,936

196,000

13,283

23,369

299,602

10

299,612

 

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Statement of Cashflows

GRAND GROUP INVESTMENT PLC

For the year ended 31 December 2016

 

 

31 December 2016

31 December 2015

 

Note

RMB’000

RMB’000

Cashflows from operating activities

 

 

 

Profit /(Loss) before tax

 

18,316

(259,483)

Adjustments:

 

 

 

Unrealised loss on unquoted financial assets

8

-

256,560

Finance income

 

(21,760)

(19,800)

Warrant expenses

 

-

13,283

Increase in other payables and accruals

 

(287)

2,981

Net cash outflow from operating activities

 

(3,731)

(6,459)

 

 

 

 

Cash flows from investing activity

 

 

 

Dividend received from unquoted financial assets at fair value through profit or loss

 

-

19,800

Cash received from disposal of financial assets

8

90,000

-

Acquisition of unquoted financial assets at fair value through profit or loss

8

-

(20,000)

Net cash inflow / (outflow) from investing activity

 

90,000

(200)

 

 

 

 

Cash flows from financing activities

 

 

 

Cash proceeds from issue of shares

 

-

66,940

Amounts (repay) / from shareholders

 

(12,057)

6,340

Net cash (outflow) / inflow from financing activities

 

(12,057)

73,281

 

 

 

 

Net increase in cash and cash equivalents

 

74,212

66,622

Cash and cash equivalents at the beginning of year

 

66,632

10

Cash and cash equivalents at the end of year

 

140,844

66,632

 

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Notes

The notes are available in the printable pdf of the results. To download it, please click here

 

Page last up-dated: 28 June 2017

Latest News

27 June 2017

Annual Financial Report