TIDMGVMH 
 
The following amendment has been made to the announcement entitled 'Audited 
Final Results' released on 1 March 2022: 
 
A responsibility statement has been appended to the announcement. The changes 
are identified with an asterisk (*). 
 
All other details remain unchanged. The full amended text is shown below. 
 
 
 
 
London, 11 March 2022 
FOR IMMEDIATE RELEASE 
 
The following amendment has been made to the announcement entitled 'Audited 
Final Results' released on 1 March 2022: 
 
A responsibility statement has been appended to the announcement. The changes 
are identified with an asterisk (*). 
 
All other details remain unchanged. The full amended text is shown below. 
 
 
                        Grand Vision Media Holdings plc 
                          ( "GVMH" or the "Company") 
 
                             Audited Final Results 
 
Grand Vision Media Holdings plc announces its audited final results for the 
year ended 31 December 2020. These are presented below and are available (along 
with the Company's 2020 Annual Report) to download on the Company's website at 
https://www.gvmh.co.uk/tag/financial-information/. 
 
The Company is working towards finalising its interim results for the six-month 
period ended 30 June 2021 and expects to announce these in the next few weeks. 
At this time, it will seek to lift the suspension in trading in the Company's 
shares. 
 
The audited results for the year ended 31 December 2021 are expected to be 
released by 30 June 2022. 
 
* The Company's directors, to the best of their knowledge, confirm (a) that the 
Company's financial statements presented below, prepared in accordance with the 
applicable set of accounting standards, give a true and fair view of the 
assets, liabilities, financial position and profit or loss of the Company and 
the undertakings included in the consolidation taken as a whole; and (b) the 
management report presented below includes a fair review of the development and 
performance of the business and the position of the Company and the 
undertakings included in the consolidation taken as a whole, together with a 
description of the principal risks and uncertainties that they face. 
 
For more information contact: 
 
Grand Vision Media Holdings plc                  gvmh.co.uk/ 
Ajay Rajpal, Director                            Tel: +44 (0) 20 7866 2145 
                                                 or info@gvmh.co.uk 
 
 
 
 
Alfred Henry Corporate Finance Ltd              Tel: +44 (0) 203 772 0021 
Nick Michaels / Jon Isaacs                      or jisaacs@alfredhenry.com 
 
 
                        GRAND VISION MEDIA HOLDINGS PLC 
 
                  DIRECTORS' REPORT AND FINANCIAL STATEMENTS 
 
                      FOR THE YEARED 31 DECEMBER 2020 
 
COMPANY INFORMATION 
 
Directors and Advisers 
 
Directors:                      Ajay Kumar Rajpal - Non-Executive 
                                Director 
                                Jonathan Yat Pang Lo - Chief 
                                Executive Officer 
                                Frederick Chua Oon Kian (appointed 20 
                                January 2020) 
 
Company Number:                 10028625 
 
Company Secretary               MSP Corporate Services Limited 
                                27-28 Eastcastle Street 
                                London 
                                W1W 8DH 
 
Registered Address:             Finsgate 
                                5-7 Cranwood Street 
                                London 
                                EC2M 7LD 
 
Principal Banker:               Metro Bank 
                                1 Southampton Road 
                                London 
                                WC1B 5HA 
 
Auditors:                       Jeffreys Henry LLP 
                                Finsgate 
                                5-7 Cranwood Street 
                                London 
                                EC1V 9EE 
 
Legal Adviser to the Company:   Bracher Rawlins 
                                77 Kingsway 
                                London 
                                WC2B 6SR 
 
Registrar:                      SLC Registrars Limited 
                                Ashley Park House 
                                42-50 Hersham Road 
                                Walton-on-Thames 
                                Surrey 
                                KT12 1RZ 
 
GRAND VISION MEDIA HOLDINGS PLC 
 
CONTENTS 
 
          Strategic review report                                4 
 
          Directors' report                                      9 
 
          Independent auditors' report                          14 
 
          Statement of comprehensive income                     20 
 
          Statement of financial position                       21 
 
          Statement of changes in equity                        23 
 
          Statement of cash flows                               24 
 
          Notes to the financial statements                     25 
 
 
                            STRATEGIC REVIEW REPORT 
 
                      FOR THE YEARED 31 DECEMBER 2020 
 
The CEO Report 
 
The onset of the COVID-19 pandemic in early 2020 has significantly adversely 
affected the Group's performance for the year. OOH revenues were severely 
impacted by the closure of cinemas across China, and the closure of businesses 
in Hong Kong, together with the travel restrictions, adversely affected digital 
marketing revenues. There was a high degree of uncertainty throughout the 
period, with a resulting loss in overall business confidence.  Certain new 
projects originally planned for the year were  postponed and will resume when 
pandemic restrictions are lifted. These include the introduction of interactive 
and 3D panels into Singapore. 
 
The disruption has lasted for the majority of the period under review, and this 
is reflected in the poor results reported. In order to mitigate the position, 
the Group has increased its focus on eCommerce marketing and services, by 
leveraging its contact base and international business network. These services 
are predominantly targeted at suppliers of medical equipment, who have 
experienced a significant increase in activity levels as a result of the 
pandemic. 
 
Summary of Trading Results 
 
Total revenue for the year was HK$5,827K [2019: HK$12,034K], a decline of 52% 
compared to the prior year. Although the Group has been working on a number of 
initiatives with suppliers of medical equipment throughout the period, the 
impact of the majority of these is only expected to come to fruition in 2022 
onwards. 
 
The Group total comprehensive loss for the year was HK$9,793K [2019: 
HK$14,957K].  This was as a direct result of the reduction is revenues across 
the Group and the major disruption caused by the pandemic. The Group has 
managed to achieve cost savings as a result of space consolidation and 
headcount reductions, and has taken advantage of Government fiscal support 
aimed at helping businesses through the pandemic. The Group has also recognised 
a provision against trade receivables of HK$2,740K given the material 
uncertainty in the region and the ongoing impact of the pandemic. 
 
Given the material uncertainty and disruption faced by the Group, the Company 
has fully impaired its investment in GVC Holdings Limited, and the intercompany 
balances owed by Group entities, resulting in charges of HK$114,572K and 
HK$18,512K respectively in the Company profit and loss account. It is hoped 
that these impairments will be reviewed again when the business and trading 
environment returns to normal, and there is more visibility on the future 
outlook. 
 
The Group has 180  panels [2019: 200] in cinemas across China, and is 
evaluating other technologies to promote OOH advertising in the cinema space as 
well as other locations. 
 
Cash in hand at the end of the year was HK$855K. The Group continues to manage 
its cash within its available resources. 
 
Outlook 
 
COVID-19 has had a significant adverse effect on the Group's performance in 
2020. Sales for 2021 will again be below historic levels as a result of the 
ongoing travel disruption and intermittent business closures across the region. 
Cinemas in China are still operating at reduced capacity.,  Unlike many other 
parts of the world, Hong Kong is following a zero COVID policy, which has 
resulted in more business disruption and closures than would otherwise be seen 
elsewhere. 
 
It is uncertain as to when trading conditions will return to normal, but the 
disruption to the Group was experienced throughout 2021, and is expected to 
last well into 2022. 
 
Section 172 Statement 
 
The Directors are well aware of their duty under s172 of the Companies Act 2006 
to act in the way which they consider, in good faith, would be most likely to 
promote the success of the Company for the benefit of its members as a whole 
and, in doing so, to have regard (amongst other matters) to: 
 
. the likely consequences of any decision in the long term; 
 
. the interests of the Group's employees; 
 
. the need to foster the Group's business relationships with suppliers, 
customers and others; 
 
. the impact of the Group's operations on the community and the environment; 
 
. the desirability of the Group maintaining a reputation for high standards of 
business conduct; and 
 
. the need to act fairly between members of the Group. 
 
 The Board recognises that the long-term success of the Grand Vision Media 
Holdings Group requires positive interaction with its stakeholders. Positive 
engagement with stakeholders will enable our stakeholders to better understand 
the activities, needs and challenges of the business and enable the Board to 
better understand and address relevant stakeholder views which will assist the 
Board's in its decision making and to discharge its duties under Section 172 of 
the Companies Act 2006. 
 
In the following section we identify our key stakeholders, how we engage with 
them and key activities we have undertaken during the period in question. 
 
Our Strategic Partners 
 
The Company works closely with its major supplier Marvel Digital Limited and 
its cinema partners Dadi Cinema Group and Perfect World Cinema Group, who are 
important strategic partners with the Group. We continue to work with them 
despite the business disruption caused by the pandemic, and have developed an 
open and transparent relationship with these partners, which promotes the 
long-term success for the Group. 
 
We also continue to strengthen our relationships with CY Group in Korea despite 
the closure of Korean cinemas caused by COVID-19 which stalled our OOH 
expansion plan.  We are looking to  create new projects to introduce  branded 
products to Korea. 
 
Our Shareholders 
 
The Company has been well-supported by its shareholders for many years, who 
have provided shareholder loans historically, and during 2020, some 
shareholders participated in the convertible loan note issue. The Company 
endeavours to keep shareholders updated on regulatory matters, and is committed 
to provide transparent information to them, both through the annual report and 
ad-hoc communications. 
 
Our Customers 
 
The Company strives to maintain strong relationships with its customers, which 
will promote long term growth. The relationships with customers who advertise 
with the Company are maintained through regular contact and relationship 
management. 
 
Our Employees 
 
The Company believes that good staff morale engenders increased efficiency and 
loyalty, and hence promotes staff welfare and well-being. Staff needs are 
constantly monitored and improved on an ongoing basis. 
 
Principal Risks and Uncertainties 
 
The Directors consider the following risk factors to be of relevance to the 
Group's activities. It should be noted that the list is not exhaustive and that 
other risk factors not presently known or currently deemed immaterial may 
apply. The risk factors are summarised below: 
 
i.      Development Risk 
 
The Group's development will be, in part, dependent on the ability of the 
Directors to continue to expand the current business and identify suitable 
investment opportunities and to implement the Group's strategy. There is no 
assurance that the Group will be successful in the expansion of the business, 
which is dependent on raising sufficient capital. 
 
ii.     Sector Risk 
 
The OOH media sector is subject to competition from other marketing channels 
and technologies, particularly the impact of digital marketing. 
 
We also compete with other OOH media locations, such as traffic hubs, elevators 
and other locations, which are more established. 
 
There is a risk of 3D technology not being well received, given that it is a 
new media platform in the OOH sector.  The Company is continuously looking for 
new and innovative platforms to differentiate itself, and there is no guarantee 
that these new platforms will be effective. 
 
The Group would also be looking at new opportunities and projects to enhance 
our service capabilities and increase our scope of services, hence lessening 
the reliance on OOH sector. 
 
iii.    Political and Regulatory Risk 
 
The  Group is subject to amendments to laws imposed by China and by other 
jurisdictions where the Group does business, including laws that govern the 
time, place and manner of advertising, that may impair or even prevent the 
Group from conducting its business. 
 
Furthermore, prior to distributing advertisements for certain commodities, 
advertising distributors and advertisers are obligated to ensure compliance to 
relevant regulations.  Violation of these regulations may result in penalties, 
including fines, confiscation of advertising income, orders to cease 
dissemination of the advertisements. 
 
In circumstances involving serious violations, the SAIC or its local branches 
may revoke violators' licenses or permits for advertising business operations. 
In addition, advertisers, advertising operators or advertising distributors may 
be subject to civil liability if they infringe on the legal rights and 
interests of third parties in the course of their advertising business. The 
Group has implemented procedures to ensure the content of our advertisement are 
properly reviewed and the advertisement would only be published upon the 
receipt of content approval from the relevant administrative authorities. 
However, the Group can provide no assurance that all the content of the 
advertisements is true and in full compliance with applicable laws. 
 
In the event that the  Group was in violation of such regulations the business, 
financial condition, results of operations and the prospects of the  Group 
could be materially and adversely affected. 
 
iv.    Environmental Risks and Hazards 
 
All phases of the Group's operations are subject to environmental regulation in 
the areas in which it operates. Environmental legislation is evolving in a 
manner that may require stricter standards and enforcement, increased fines and 
penalties for non-compliance, more stringent environmental assessments of 
proposed projects and a heightened degree of responsibility for companies and 
their officers, directors and employees. 
 
There is no assurance that existing or future environmental regulation will not 
materially adversely affect the Group's business, financial condition and 
results of operations. Environmental hazards may exist on the properties on 
which the Group holds interests that are unknown to the Group at present. The 
Board manages this risk by working with environmental consultants and by 
engaging with the relevant governmental departments and other concerned 
stakeholders. 
 
v.     Internal Control and Financial Risk Management 
 
The Board has overall responsibility for the Group's systems of internal 
control and for reviewing their effectiveness. The Group maintains systems 
which are designed to provide reasonable but not absolute assurance against 
material loss and to manage rather than eliminate risk. 
 
The key features of the Group's systems of internal control are as follows: 
 
o  Management structure with clearly identified responsibilities; 
 
o  Production of timely and comprehensive historical management information 
presented to the Board; 
 
o  Detailed budgeting and forecasting; 
 
o  Day to day hands on involvement of the Executive Directors and Senior 
Management; and 
 
o  Regular board and meetings and discussions with the Non-executive directors. 
 
The Group's activities expose it to several financial risks including cash flow 
risk, liquidity risk and foreign currency risk. 
 
vi.    Environmental Policy 
 
The Group is aware of the potential impact that its subsidiary and associate 
companies may have on the environment. The Group ensures that it complies with 
all local regulatory requirements and seeks to implement a best practice 
approach to managing environmental aspects. 
 
vii.   Health and Safety 
 
The Group's aim is to achieve and maintain a high standard of workplace safety. 
In order to achieve this objective, the Group provides ongoing training and 
support to employees and sets demanding standards for workplace safety. 
 
viii.  Financing Risk 
 
The development of the Group's business may depend upon the Group's ability to 
obtain financing primarily through the raising of new equity capital or debt. 
The Group's ability to raise further funds may be affected by the success of 
existing and acquired investments. The Group may not be successful in procuring 
the requisite funds on terms which are acceptable to it (or at all) and, if 
such funding is unavailable, the Group may be required to reduce the scope of 
its investments or the anticipated expansion. Further, Shareholders' holdings 
of Ordinary Shares may be materially diluted if debt financing is not 
available. 
 
ix.    Credit Risk 
 
The Group does not have bank loans or other borrowings except for shareholder 
loans.  The Group has benefitted from further shareholder loans, although there 
is no guarantee that these will continue in the future. We have reviewed the 
accounts receivable and have made adequate provisions as appropriate. 
 
x.     Liquidity Risk 
 
The Directors have reviewed the working capital forecasts for the Group and 
believe that there is sufficient working capital to fund the business as it 
progresses to break even. The group is reliant on raising new capital for 
expansion, which is not guaranteed. 
 
xi.    Market Risk 
 
The group's investments is in its subsidiary, GVC Holdings Ltd. The shares are 
not readily tradable. 
 
xii.   Capital Risk 
 
The Group manages its capital resources to ensure that entities in the Group 
will be able to continue as a going concern, while maximising shareholder 
return. 
 
The capital structure of the Group consists of equity attributable to 
shareholders, comprising issued share capital and reserves. The availability of 
new capital will depend on many factors including a positive operating 
environment, positive stock market conditions, the Group's track record, and 
the experience of management. There are no externally imposed capital 
requirements.  The Directors are confident that adequate cash resources exist 
or will be made available to finance operations but controls over expenditure 
are carefully managed. 
 
xiii.  Covid 19 Outbreak 
 
The Group have been significantly affected by the Covid -19 outbreak, and the 
impact of it on the Group financials and worldwide economy have been severe. 
The Group are hoping for a return to normal trading conditions in the current 
year, and until such time, the business will face disruption and uncertainty. 
 
Going Concern 
 
The day to day working capital requirements and investment objectives is met by 
existing cash resources and the issue of equity. At 31 December 2020 the Group 
had cash balance of HKD855k. The Group's forecasts and projections, taking into 
account reasonably planned changes in the level of overhead costs, show that 
the Company should be able to operate within its available cash resources but 
only with shareholder help. A major shareholder has committed to provide the 
required level of support. The directors have, at the time of approving the 
financial statements, a reasonable expectation that the Group has adequate 
resources to continue in existence for the foreseeable future. They therefore 
continue to adopt the going concern basis of accounting in preparing the 
financial statements. 
 
On behalf of the board 
 
Jonathan Lo 
 
Chief Executive Officer 
 
28 February 2022 
 
                               DIRECTORS' REPORT 
 
                      FOR THE YEARED 31 DECEMBER 2020 
 
The directors present their report together with the accounts of Grand Vision 
Media Holdings Plc ("the Company") and its subsidiary undertakings (together 
'the group') for the year ended 31 December 2020. 
 
Results and dividends 
 
The trading results for the Group are set out in the consolidated statement of 
comprehensive income and the consolidated statement of financial position at 
the end of the year. 
 
The directors have not recommended a dividend. 
 
Directors 
 
The following directors have held office during the period: 
 
         Edward Kwan-Mang Ng (resigned 20 January 2020) 
 
         Ajay Kumar Rajpal 
 
         Jonathan Yat Pang Lo 
 
         Federick Chua Oon Kian (appointed 20 January 2020) 
 
Directors' interests 
 
At the date of this report the directors held the following beneficial interest 
in the ordinary share capital and share options of the company: 
 
Director                      Beneficial Shareholding     Beneficial             Percentage of the 
                              (Held through Cyber Lion    Shareholdings          Company's ordinary 
                                      Limited)                                     Share Capital 
 
Edward Kwan-Mang Ng                     Nil                                              - 
 
 
Ajay Kumar Rajpal                       Nil                                              - 
 
Jonathan Yat Pang Lo                                           22,438,842              23.3% 
 
Federick Chua Oon Kian                                              -                    - 
 
           Director                                                 Options 
 
           Edward Kwan-Mang Ng                                      3,000,000 
 
           Ajay Kumar Rajpal                                        3,000,000 
 
           Jonathan Yat Pang Lo                                     6,000,000 
 
           Totals                                                   12,000,000 
 
 
Substantial Interests 
 
The Company has been informed of the following shareholdings that represent 3% 
or more of the issued ordinary shares of the company as at 27 February 2022 : 
 
Investor                             Shareholding 
                               (Ordinary shares of 10p)    Percentage of the 
                                                           Company's ordinary 
                                                           Share Capita 
 
Jonathan Lo                          22,438,842                    23.3% 
 
Pentawood Limited                    12,439,779                   12.92% 
 
Stephen Lo                           12,439,779                   12.92% 
 
Magic Carpet                         8,064,486                     8.38% 
 
Win Network International              7,328,000                   7.61% 
Limited * 
 
Timenow Ltd                          4,499,016                     4.67% 
 
Vaiatrax Holdings Ltd                3,936,639                     4.09% 
 
Tamperzem Holding Ltd                3,374,262                     3.50% 
 
*Beneficially owned by 
Stephen Lo 
 
 
Financial risk and management of capital 
 
The major balances and financial risks to which the company is exposed to and 
the controls in place to minimise those risks are disclosed in Note 20. 
 
A description of how the company manages its capital is also disclosed in Note 
19. 
 
The Board considers and reviews these risks on a strategic and day-to-day basis 
in order to minimise any potential exposure. 
 
Emissions 
 
The Group is not an intensive user of fossil fuels or electricity. As a result, 
it is not practical to determine carbon emission with any degree of accuracy. 
 
Financial instruments 
 
The company has not entered into any financial instruments to hedge against 
interest rate or exchange rate risk. 
 
Supplier payment policy 
 
It is the Group's payment policy to pay suppliers in line with industry norms. 
These payables are paid on a timely basis within contractual terms which is 
generally 30 to 60 days from date of receipt of invoice. 
 
Auditors 
 
Jeffreys Henry LLP were appointed auditors to the company and in accordance 
with section 485 of the Companies Act 2006, a resolution proposing that they be 
re-appointed will be put at a General Meeting. 
 
Statement of directors' responsibilities 
 
The directors are responsible for preparing the Directors' Report and the 
financial statements in accordance with applicable law and regulations. 
 
Company law requires the directors to prepare Group and parent company 
financial statements for each financial year. Under that law the directors have 
elected to prepare the financial statements in accordance with International 
Financial Reporting Standards (IFRS) as adopted for use in the European Union. 
Under company law the directors must not approve the financial statements 
unless they are satisfied that they give a true and fair view of the state of 
affairs of the group and company and of the group's profit or loss for that 
period. In preparing these financial statements, the directors are required to: 
 
·      select suitable accounting policies and then apply them consistently; 
 
·      make judgements and accounting estimates that are reasonable and 
prudent; 
 
·      state whether they have been prepared in accordance with IFRS as adopted 
by the European Union 
 
·      prepare the financial statements on the going concern basis unless it is 
inappropriate to presume that the company will continue in business. 
 
The directors are responsible for keeping adequate accounting records that are 
sufficient to show and explain the company's transactions and disclose with 
reasonable accuracy at any time the financial position of the group and 
company. They are also responsible for safeguarding the assets of the group and 
company and hence for taking reasonable steps for the prevention and detection 
of fraud and other irregularities. 
 
The Directors are responsible for the maintenance and integrity of the 
corporate and financial information included on the Company's website. 
 
Corporate Governance 
 
The Board recognizes that good standards of corporate governance help the 
Company to achieve its strategic goals and is vital for the success of the 
Company.  The Company adopts proper standards of corporate governance and 
follows the principles of best practice set out in Corporate Governance Code 
(2019), as far as is appropriate for the size and nature of the Company and the 
Group. These principles are disclosed on our website in the Corporate 
Governance section 
 
Application of principles of good governance by to board of directors 
 
The board currently comprises the three directors: Frederick Chua Oon Kian, 
Ajay Kumar Rajpal and Jonathan Yat Pang Lo. 
 
There are regular board meetings each year and other meetings are held as 
required to direct the overall Company strategy and operations. Board meetings 
follow a formal agenda covering matters specifically reserved for decision by 
the board. These cover key areas of the Company's affairs including overall 
strategy, acquisition policy, approval of budgets, major capital expenditure 
and significant transactions and financing issues. 
 
The board undertakes a formal annual evaluation of its own performance and that 
of its committees and individual directors, through discussions and one-to-one 
reviews with the chairman and the senior independent director. 
 
Statement of disclosure to auditors 
 
Each person who is a Director at the date of approval of this Annual Report 
confirms that: 
 
.       So far as the Directors are aware, there is no relevant audit 
information of which the Company's auditors are unaware; and 
 
.       Each Director has taken all the steps that he ought to have taken as 
Director in order to make himself aware of any relevant audit information and 
to establish that the Company's auditors are aware of that information. 
 
.       Each Director is aware of and concurs with the information included in 
the Strategic Report. 
 
Post Balance Sheet Events 
 
Further information on events after the reporting date is set out in note 24. 
 
Branches Outside the UK 
 
The Group head office is in Hong Kong and the subsidiaries are located in Hong 
Kong and China. 
 
The Directors' have chosen to produce a Strategic Report that discloses a fair 
review of the Group's business, the key performances metrics that the Directors 
review along with a review of the key risks to the business. 
 
In accordance with Section 414C (1) of the Companies Act 2006, the group 
chooses to report the review of the business, the future outlook and the risks 
and uncertainties faced by the Company in The Strategic Report on page 4. 
 
Directors' Remuneration Report 
 
The information included in this section is not subject to audit other than 
where specifically indicated. 
 
The remuneration committee consisted of Ajay Rajpal and Frederick Chua Oon 
Kian. This committee's primary function is to review the performance of 
executive directors and senior employees and set their remuneration and other 
terms of employment. 
 
                                  2020            2019 
 
Director                          Options Vested  Options Vested 
 
Edward Ng                         1,000,000       1,000,000 
 
Ajay Rajpal                       1,000,000       1,000,000 
 
Jonathan Lo                       2,000,000       2,000,000 
 
                                                  - 
 
Totals                            4,000,000       4,000,000 
 
The Company has one executive director. 
 
The remuneration policy 
 
It is the aim of the committee to remunerate executive directors competitively 
and to reward performance. The remuneration committee determines the company's 
policy for the remuneration of executive directors, having regard to the UK 
Corporate Governance Code and its provisions on directors' remuneration. 
 
Service agreements and terms of appointment 
 
The directors have service contracts with the company. 
 
Directors' interests 
 
The directors' interests in the share capital of the company are set out in the 
Directors' report. 
 
Directors' emoluments 
 
Salaries and Fees                    Group                 Company 
 
                                     2020       2019       2020       2019 
 
                                     HK$'000    HK$'000    HK$'000    HK$'000 
 
Edward Ng                            -          60         -          - 
 
Ajay Rajpal                          480        240        120        120 
 
Jonathan Lo                          1,080      1,080      480        480 
 
                                     1,320      1,380      600        600 
 
No pension contributions were made by the company on behalf of its directors 
apart for Jonathan Lo of HKD18K. 
 
Approval by shareholders 
 
At the next annual general meeting of the company a resolution approving this 
report is to be proposed as an ordinary resolution. 
 
This report was approved by the board on 28 February 2022 
 
On behalf of the board 
 
__________________ 
 
Jonathan Lo 
 
Director 
 
28 February 2022 
 
                         INDEPENT AUDITOR'S REPORT 
 
               TO THE MEMBERS OF GRAND VISION MEDIA HOLDINGS PLC 
 
Opinion 
 
We have audited the financial statements of Grand Vision Media Holdings Plc 
(the 'parent company') and its subsidiaries (the 'group') for the year ended 31 
December 2020 which comprise the consolidated statement of comprehensive 
income, the consolidated and company statements of financial position, the 
consolidated and company statements of cash flows, the consolidated and company 
statements of changes in equity and notes to the financial statements, 
including a summary of significant accounting policies. 
 
In our opinion: 
 
·      the financial statements give a true and fair view of the state of the 
group's and of the parent company's affairs as at 31 December 2020 and of the 
group's loss for the year then ended; 
 
·      the group financial statements have been properly prepared in accordance 
with IFRSs as adopted by the European Union; 
 
·      the parent company financial statements have been properly prepared in 
accordance with IFRSs as adopted by the European Union and as applied in 
accordance with the provisions of the Companies Act 2006; and 
 
·      the financial statements have been prepared in accordance with the 
requirements of the Companies Act 2006. 
 
Basis for opinion 
 
We conducted our audit in accordance with International Standards on Auditing 
(UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards 
are further described in the Auditor's responsibilities for the audit of the 
financial statements section of our report. We are independent of the company 
in accordance with the ethical requirements that are relevant to our audit of 
the financial statements in the UK, including the FRC's Ethical Standard as 
applied to listed entities, and we have fulfilled our other ethical 
responsibilities in accordance with these requirements. We believe that the 
audit evidence we have obtained is sufficient and appropriate to provide a 
basis for our opinion. 
 
Material uncertainty related to going concern 
 
We draw attention to note 2.3 in the financial statements, which explains that 
the Group has incurred significant operating losses and negative cash flows 
from operations. The Group forecasts include additional shareholder funding 
requirements upon which the Group is dependent. The directors are satisfied 
that these funding requirements will be met. These events or conditions, along 
with other matters as set out in note 2.3 indicate that a material uncertainty 
exists that may cast doubt on the Group's ability to continue as a going 
concern. Our opinion is not modified in respect of this matter. 
 
Key audit matters 
 
Key audit matters are those matters that, in our professional judgment, were of 
most significance in our audit of the financial statements of the current 
period and include the most significant assessed risks of material misstatement 
(whether or not due to fraud) we identified, including those which had the 
greatest effect on: the overall audit strategy, the allocation of resources in 
the audit; and directing the efforts of the engagement team. These matters were 
addressed in the context of our audit of the financial statements as a whole, 
and in forming our opinion thereon, and we do not provide a separate opinion on 
these matters. This is not a complete list of all risks identified by our 
audit. 
 
·      Going concern issues 
 
·      Carrying value of investments and recoverability of intercompany loans 
 
These are explained in more detail below: 
 
Key audit matter                            How our audit addressed the key audit 
                                            matter 
 
Possible impairment of long-term investment We have reviewed the consolidated 
and loans to subsidiaries (Parent)          financials of the subsidiary and having 
At the year end  the Company had Investment reviewed the performance to date the 
in subsidiary of HK$114,572K and Loans of   subsidiary is profit making and is 
HK$ 18,512K.                                continuing to grow. 
The directors have assessed whether the     We reviewed the latest management 
investment and made an impairment provision accounts post year end for the 
in full.                                    subsidiary. We have reviewed the long 
                                            term cashflow forecasts prepared and 
                                            understood and assessed the methodology 
                                            used by the directors in this analysis 
                                            and determined it to be reasonable. 
                                            We tested management sensitivity analysis 
                                            through changing the assumptions used and 
                                            re- running the cash flow forecast. 
                                            We discussed the results and the full 
                                            impairment. 
 
Going concern assumption                    Our audit procedures: 
                                            ·    We obtained and reviewed the 
The Group is dependent upon its ability to  directors' assessment, including 
generate sufficient cash flows to meet      challenging the liquidity position; 
continued operational costs and hence       ·    We agreed the assumed cash flows to 
continue trading.                           the business plan, walked through the 
Although the current loss-making status is  business planning process and tested the 
as expected due  to the impact of Covid and central assumptions and external data; 
the stage in development  , given the scale ·    We audited the key assumptions; 
of cash outflows, the Group needs to be     ·    We assessed the sensitivities of the 
generating sufficient revenues to sustain   underlying assumptions. 
its position. The going concern assumptions ·    We assessed the financial support 
is dependent on future growth of the        available from a key shareholder. 
current businesses. No future capital 
raises were being considered to maintain 
the business. The Group relies on the 
support of one of its key shareholders. 
 
 
Our application of materiality 
 
The scope of our audit was influenced by our application of materiality. We set 
certain quantitative thresholds for materiality. These, together with 
qualitative considerations, helped us to determine the scope of our audit and 
the nature, timing and extent of our audit procedures on the individual 
financial statement line items and disclosures and in evaluating the effect of 
misstatements, both individually and in aggregate on the financial statements 
as a whole. 
 
Based on our professional judgment, we determined materiality for the financial 
statements as a whole as follows: 
 
 
 
 
 
 
                        Group financial statements     Company financial statements 
 
Overall materiality     HK$ 343,000 (2019: HK$         HK$ 56,000 (2019: HK$ 119,000) 
                        700,000) 
 
How we determined it    5% of Net Loss (2019: 5% of    5% of Net Loss (2019: 5% of 
                        Net Loss)                      Net Loss) 
 
Rationale for           We believe that loss before    We believe that gross asset 
benchmark applied       tax is a primary measure used  values are a representation of 
                        by shareholders in assessing   the size of the Company and is 
                        the performance of the Group   a generally accepted auditing 
                        whilst gross asset values and  benchmark. 
                        revenue are a representation 
                        of the size of the Group; all 
                        are generally accepted 
                        auditing benchmarks. 
 
For each component in the scope of our Group audit, we allocated a materiality 
that is less than our overall Group materiality. The range of materiality 
allocated across components was between HK$30,000 and HK$226,000. 
 
We agreed with the Audit Committee that we would report to them misstatements 
identified during our audit above HK$2,800 as well as misstatements below those 
amounts that, in our view, warranted reporting for qualitative reasons. 
 
An overview of the scope of our audit 
 
As part of designing our audit, we determined materiality and assessed the 
risks of material misstatement in the financial statements. In particular, we 
looked at where the directors made subjective judgments, for example in respect 
of significant accounting estimates that involved making assumptions and 
considering future events that are inherently uncertain. As in all of our 
audits we also addressed the risk of management override of internal controls, 
including evaluating whether there was evidence of bias by the directors that 
represented a risk of material misstatement due to fraud. 
 
How we tailored the audit scope 
 
We tailored the scope of our audit to ensure that we performed enough work to 
be able to give an opinion on the financial statements as a whole, taking into 
account the structure of the Group and the Company, the accounting processes 
and controls, and the industry in which they operate. 
 
The Group financial statements are a consolidation of 8 reporting units, 
comprising the Group's operating businesses and holding companies. 
 
We performed audits of the complete financial information of Grand Vision Media 
Holdings Plc, and GVC Holdings Ltd reporting units, which were individually 
financially significant and accounted for 100% of the Group's revenue and 100% 
of the Group's absolute profit before tax (i.e., the sum of the numerical 
values without regard to whether they were profits or losses for the relevant 
reporting units). We also performed specified audit procedures over goodwill 
and other intangible assets, as well as certain account balances and 
transaction classes that we regarded as material to the Group at 8 reporting 
units. 
 
Other information 
 
The directors are responsible for the other information. The other information 
comprises the information included in the annual report, other than the 
financial statements and our auditor's report thereon. Our opinion on the 
financial statements does not cover the other information and, except to the 
extent otherwise explicitly stated in our report, we do not express any form of 
assurance conclusion thereon. 
 
In connection with our audit of the financial statements, our responsibility is 
to read the other information and, in doing so, consider whether the other 
information is materially inconsistent with the financial statements or our 
knowledge obtained in the audit or otherwise appears to be materially 
misstated. If we identify such material inconsistencies or apparent material 
misstatements, we are required to determine whether there is a material 
misstatement in the financial statements or a material misstatement of the 
other information. If, based on the work we have performed, we conclude that 
there is a material misstatement of this other information, we are required to 
report that fact. We have nothing to report in this regard. 
 
Opinion  on other matters prescribed by the Companies Act 2006 
 
In our opinion, based on the work undertaken in the course of the audit: 
 
·      the information given in the strategic report and the directors' report 
for the financial year for which the financial statements are prepared is 
consistent with the financial statements; and 
 
·      the strategic report and the directors' report have been prepared in 
accordance with applicable legal requirements. 
 
Matters on which we are required to report by exception 
 
In the light of the knowledge and understanding of the group and parent company 
and its environment obtained in the course of the audit, we have not identified 
material misstatements in the strategic report or the directors' report. 
 
We have nothing to report in respect of the following matters in relation to 
which the Companies Act 2006 requires us to report to you if, in our opinion: 
 
·      adequate accounting records have not been kept by the parent company, or 
returns adequate for our audit have not been received from branches not visited 
by us; or 
 
·      the parent company financial statements [and the part of the directors' 
remuneration report to be audited] are not in agreement with the accounting 
records and returns; or 
 
·      certain disclosures of directors' remuneration specified by law are not 
made; or 
 
·      we have not received all the information and explanations we require for 
our audit. 
 
Responsibilities of directors 
 
As explained more fully in the directors' responsibilities statement [set out 
on page 9], the directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view, and for 
such internal control as the directors determine is necessary to enable the 
preparation of financial statements that are free from material misstatement, 
whether due to fraud or error. 
 
In preparing the financial statements, the directors are responsible for 
assessing the group's and parent company's ability to continue as a going 
concern, disclosing, as applicable, matters related to going concern and using 
the going concern basis of accounting unless the directors either intend to 
liquidate the group or the parent company or to cease operations, or have no 
realistic alternative but to do so. 
 
Auditor's responsibilities for the audit of the financial statements 
 
Our objectives are to obtain reasonable assurance about whether the financial 
statements as a whole are free from material misstatement, whether due to fraud 
or error, and to issue an auditor's report that includes our opinion. 
Reasonable assurance is a high level of assurance but is not a guarantee that 
an audit conducted in accordance with ISAs (UK) will always detect a material 
misstatement when it exists. Misstatements can arise from fraud or error and 
are considered material if, individually or in the aggregate, they could 
reasonably be expected to influence the economic decisions of users taken on 
the basis of these financial statements. 
 
A further description of our responsibilities for the audit of the financial 
statements is located on the Financial Reporting Council's website at: 
 
www.frc.org.uk/auditorsresponsibilities. This description forms part of our 
auditor's report. 
 
The extent to which the audit was considered capable of detecting 
irregularities, including fraud 
 
Our approach to identifying and assessing the risks of material misstatement in 
respect of irregularities, including fraud and non-compliance with laws and 
regulations, was as follows: 
 
·      the senior statutory auditor ensured the engagement team collectively 
had the appropriate competence, capabilities and skills to identify or 
recognise non-compliance with applicable laws and regulations; 
 
·      we identified the laws and regulations applicable to the company through 
discussions with directors and other management, and from our commercial 
knowledge and experience of the digital marketing and advertising sector. 
 
·      we focused on specific laws and regulations which we considered may have 
a direct material effect on the financial statements or the operations of the 
company, including Companies Act 2006, taxation legislation, data protection, 
anti-bribery, employment, environmental, health and safety legislation and 
anti-money laundering regulations. 
 
·      we assessed the extent of compliance with the laws and regulations 
identified above through making enquiries of management and inspecting legal 
correspondence; and 
 
·      identified laws and regulations were communicated within the audit team 
regularly and the team remained alert to instances of non-compliance throughout 
the audit. 
 
·      We assessed the susceptibility of the company's financial statements to 
material misstatement, including obtaining an understanding of how fraud might 
occur, by: 
 
·      making enquiries of management as to where they considered there was 
susceptibility to fraud, their knowledge of actual, suspected and alleged 
fraud; 
 
·      considering the internal controls in place to mitigate risks of fraud 
and non-compliance with laws and regulations. 
 
To address the risk of fraud through management bias and override of controls, 
we: 
 
.       performed analytical procedures to identify any unusual or unexpected 
relationships; 
 
.       tested journal entries to identify unusual transactions; 
 
.       assessed whether judgements and assumptions made in determining the 
accounting estimates set out in Note 3 of the Group financial statements were 
indicative of potential bias; 
 
.       investigated the rationale behind significant or unusual transactions. 
 
In response to the risk of irregularities and non-compliance with laws and 
regulations, we designed procedures which included, but were not limited to: 
 
.       agreeing financial statement disclosures to underlying supporting 
documentation; 
 
.       reading the minutes of meetings of those charged with governance; 
 
.       enquiring of management as to actual and potential litigation and 
claims; 
 
.       reviewing correspondence with HMRC and the company's legal advisor. 
 
There are inherent limitations in our audit procedures described above. The 
more removed that  laws and regulations are from financial transactions, the 
less likely it is that we would become aware of non-compliance. Auditing 
standards also limit the audit procedures required to identify non-compliance 
with laws and regulations to enquiry of the directors and other management and 
the inspection of regulatory and legal correspondence, if any. 
 
Material misstatements that arise due to fraud can be harder to detect than 
those that arise from error as they may involve deliberate concealment or 
collusion. 
 
A further description of our responsibilities for the audit of the financial 
statements is located on the Financial Reporting Council's website at: 
www.frc.org.uk/auditorsresponsibilities. This description forms part of our 
auditor's report. 
 
Other matters which we are required to address 
 
We were appointed by the audit committee on 8 February 2017 to audit the 
financial statements for the period ending 31 December 2016. Our total 
uninterrupted period of engagement is 5 years, covering the years ending 31 
December 2016 to 31 December 2020. 
 
The non-audit services prohibited by the FRC's Ethical Standard were not 
provided to the group or the parent company and we remain independent of the 
group and the parent company in conducting our audit. 
 
Our audit opinion is consistent with the additional report to the audit 
committee. 
 
Use of this report 
 
This report is made solely to the company's members, as a body, in accordance 
with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been 
undertaken so that we might state to the company's members those matters we are 
required to state to them in an auditor's report and for no other purpose. To 
the fullest extent permitted by law, we do not accept or assume responsibility 
to anyone other than the company and the company's members as a body, for our 
audit work, for this report, or for the opinions we have formed. 
 
Sanjay Parmar (Senior Statutory Auditor) 
 
For and on behalf of Jeffreys Henry LLP (Statutory Auditors) 
 
Finsgate 
 
5-7 Cranwood Street 
 
London EC1V 9EE 
 
 
28 February 2022 
 
Statements of Comprehensive Income for the year ended 31 December 2020 
 
                                            Group       Group      Company      Company 
 
                                          For the     For the For the year For the year 
                                             year        year 
 
                                            ended       ended        ended        ended 
 
                                      31 December 31 December  31 December  31 December 
                                             2020        2019         2020         2019 
 
                                Note      HK$'000     HK$'000      HK$'000      HK$'000 
 
Revenue                           4         5,827      12,034            -            - 
 
Cost of sales                             (5,129)    (10,648)            -            - 
 
Gross profit                                  698       1,386            -            - 
 
Other income                      4         1,720         184            -            - 
 
                                            2,418       1,570            -            - 
 
Administrative expenses           6       (9,839)    (16,442)      (1,329)      (2,593) 
 
Provision for the trade                   (2,740)           - 
receivables 
 
Impairment loss for investment                  -           -    (114,571)            - 
in Subsidiary 
 
Impairment loss on the                          -           -     (18,512)            - 
intercompany current account 
 
(Loss)/profit for the period             (10,161)    (14,872)    (134,412)      (2,593) 
from operations 
 
Finance costs                     5           111       (223)            -            - 
 
(Loss)/profit for the period             (10,050)    (15,095)    (134,412)      (2,593) 
before tax 
 
Income tax expense                7             -           -            -            - 
 
(Loss)/profit for the period             (10,050)    (15,095)    (134,412)      (2,593) 
 
Other comprehensive income 
(loss)/income 
 
Exchange differences arising on               257         138            -           87 
translation of foreign 
operations 
 
Total comprehensive (loss)/               (9,793)    (14,957)    (134,412)      (2,506) 
income for the period 
 
(Loss)/ profit attributable to 
 
Equity holders of parent                  (9,761)    (15,221)    (134,412)      (2,593) 
company 
 
Non-controlling interests                   (289)         126            -            - 
 
                                         (10,050)    (15,095)    (134,412)      (2,593) 
 
Total comprehensive (loss) / income 
attributable to: 
 
Equity holders of the parent              (9,504)    (15,083)    (134,412)      (2,506) 
company 
 
Non-controlling interests                   (289)         126            -            - 
 
                                          (9,793)    (14,957)    (134,412)      (2,506) 
 
Earnings/(loss) per shares -      8        (0.10)      (0.16)       (1.40)      (0.027) 
Basic and diluted HK$ 
 
Statements of financial position as at 31 December 2020 
 
                                             Group          Group     Company     Company 
 
                                             As at          As at       As at       As at 
 
                                       31 December    31 December 31 December 31 December 
                                              2020           2019        2020        2019 
 
                              Notes        HK$'000        HK$'000     HK$'000     HK$'000 
 
Assets 
 
Non-current assets 
 
Property, plant and             9                             165           -           - 
equipment                            170 
 
Right of use assets (IFRS16)   11            1,108          1,710           -           - 
 
Investment in Subsidiaries     12                -              -           -     114,572 
 
Total non-current assets                     1,278          1,875           -     114,572 
 
Current assets 
 
Inventories                    10                -          1,004           -           - 
 
Trade and other receivables    13            3,549          6,403           -           - 
 
Deposits and prepayments       13              400            395          55          52 
 
Amount due from subsidiaries   13                -              -           -      18,107 
 
Cash and cash equivalents      14              855            510          43         114 
 
Total current assets                         4,804          8,312          98      18,273 
 
Total assets                                 6,082         10,187          98     132,845 
 
Equity and liabilities 
 
Equity 
 
Share capital                  19           96,017         96,017      96,017      96,017 
 
Share premium                               44,106         44,106      44,106      44,106 
 
Group Re-organization                    (100,031)       (96,631)           -           - 
Reserve 
 
Capital Contribution arising                   844            844           -           - 
from Shareholder's Loan 
 
Other Reserves                               4,824          3,849       3,849       3,849 
 
Exchange Reserves                            2,366          4,509         276         266 
 
Accumulated deficit                       (79,109)       (69,348)   (152,489)    (18,077) 
 
Equity attributable to                    (30,983)       (16,654)       8,241     126,161 
owners of the parent 
 
Non-controlling interests                    (173)        (3,284)           -           - 
 
Total equity                              (31,156)       (19,938)       8,241     126,161 
 
Liabilities 
 
Non-current liabilities 
 
Convertible Bonds              17            5,968          5,822       5,968       5,822 
 
Shareholder loans              18            9,227          8,893         477           - 
 
Total non-current                           15,195         14,715       6,445       5,822 
liabilities 
 
Current liabilities 
 
Trade and other payables       15           14,282         13,051       1,894         862 
 
Lease Liabilities              21            1,156          1,761           -           - 
 
Amount due to a director                     3,567            515           -           - 
 
Deposits received                               92              -           -           - 
Shareholder loan                             2,946             83           -           - 
 
Total current liabilities                   22,043         15,410       1,894         862 
 
Total liabilities                           37,238         30,020       8,339       6,684 
 
Total equity and liabilities                 6,082         10,187          98     132,845 
 
 
 
 
Approved by the Board and authorised for issue on 28 February 2022 
 
Jonathan Lo 
 
Director 
 
?              Company Registration No. 10028625 
 
Statements of Changes in Equity 
 
                        Share    Share    Other Exchange  Retained     Total 
                      capital  premium reserves reserves  earnings    equity 
 
Company               HK$'000  HK$'000  HK$'000  HK$'000   HK$'000   HK$'000 
 
Balance at 1 January   96,017   44,106    1,447        -   (3,985)     5,292 
2019 
 
(Loss) for the year         -        -        -      266   (1,186)     (920) 
 
Convertible loan            -        -    1,082        -         -     1,082 
note                                      1,320            (1,320)         - 
Share based payments 
 
Total comprehensive         -        -    2,402      266   (2,506)     3,240 
income 
 
Balance at 31          96,017   44,106    3,849      266  (18,077)   126,161 
December 2019 
 
Change in equity for 
2020 
 
(Loss) for the year         -        -        -        - (134,412) (134,412) 
 
Other comprehensive         -        -        -       10         -        10 
income 
 
Share based payments        -        -        -        -         -         - 
 
Total comprehensive         -        -        -       10 (134,412) (134,402) 
income 
 
Balance at 31          96,017   44,106    3,849      276 (152,489)   (8,241) 
December 2020 
 
 
Statements of Changes in Equity 
 
Attributable to the Group 
 
                    Share     Share      Reverse    Other  Exchange       Capital  Retained    Total  Non-controlling    Total 
                  capital   premium  Acquisition  reserve   reserve  contribution  earnings                 interests   equity 
                                         reserve                         reserves 
 
                  HK$'000   HK$'000      HK$'000  HK$'000   HK$'000       HK$'000   HK$'000  HK$'000          HK$'000  HK$'000 
 
GVMH PLC 
 
Balance at 1     96,017    44,106   (96,631)    1,447       450         -    (54,215)   (8,827)   (3,410)       (12,237) 
January 2019 
 
Capital               -         -          -        -         -                     -       844         -            844 
Contribution 
 
Exchange              -         -          -        -     4,060         -           -     4,060         -          4,060 
Reserve 
 
Share based           -         -          -    1,320         -         -           -     1,320         -          1,320 
payment 
 
Loan note             -         -          -    1,082         -         -           -     1,082         -          1,082 
 
Non-Controlling       -         -          -        -         -         -           -         -       126            126 
Interest 
 
Loss for the                                                  -         -    (15,133)  (15,133)         -       (15,133) 
period          -               -          -        - 
 
Balance at 31     96,017    44,106    (96,631)    3,849     4,510         844   (69,348) (16,653)       (3,284)    (19,937) 
December 2019 
 
GVMH PLC 
 
Balance at 1      96,017    44,106    (96,631)    3,849     4,510         844   (69,348) (16,653)       (3,284)    (19,937) 
January 2020 
 
Exchange               -         -           -        -   (2,144)           -          -  (2,144)             -     (2,144) 
Reserve 
 
Share based            -         -           -      975         -           -          -      975             -         975 
payment 
 
Other reserve          -         -     (3,400)        -         -           -          -  (3,400)         3,400           - 
 
Non-Controlling        -         -           -        -         -           -          -        -         (289)       (289) 
Interest 
 
Loss for the           -         -           -        -         -           -    (9,761)  (9,761)             -     (9,761) 
period 
 
Balance at 31     96,017    44,106   (100,031)              2,366         844   (79,109) (30,983)         (173)    (31,156) 
DECEMBER 2020                                     4,824 
 
 
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. 
 
Share-based payments reserve relate to the charge for share-based payments in 
accordance with IFRS 2. 
 
Retained earnings represent the cumulative loss of the Group attributable to 
equity shareholders. 
 
The reverse acquisition reserve arose in June 2019 on the reverse acquisition 
by GVC. 
 
Statements of Cash flows for the year ended 31 December 2020 
 
                                            Group       Group Company  For       Company 
                                          For the     For the     the year  For the year 
                                             year        year 
 
                                            ended       ended        ended         ended 
 
                                      31 December 31 December  31 December   31 December 
                                             2020        2019         2020          2019 
 
                                          HK$'000     HK$'000      HK$'000       HK$'000 
 
Operating activities 
 
(Loss)/ profit before taxation           (10,050)    (15,095)    (134,412)       (2,593) 
 
Adjustments for: 
 
Depreciation                                  843       2,350            -             - 
 
Provision for the trade receivables         2,740 
 
Impairment loss for the investment              -           -      114,571             - 
 
Impairment loss on the intercompany             -           -       18,512             - 
current account 
 
Share based payment                           975       1,320            -         1,320 
 
Finance costs                                  31         223            -             - 
 
Reverse of overprovided interest            (143)           - 
 
Operating loss before changes in          (5,604)    (11,202)      (1,329)       (1,273) 
working capital 
 
Decrease in inventories                     1,004         702            -             - 
 
Decrease/ (increase) in trade and             109     (1,299)          (3)             - 
other receivables 
 
Decrease/ (increase) in deposits and            -         641            -           (4) 
prepayments 
 
Increase in trade and other payables          826       2,473          628            45 
 
Increase in deposit received                   10        (27)            -             - 
 
Cash generated from/(used in)             (3,655)     (8,711)        (704)       (1,232) 
operating activities 
 
Investing activities 
 
Payment for purchase of property,           (248)        (10)            -             - 
plant and equipment 
 
Net cash (outflow)/ inflow from             (248)        (10)            -             - 
investing activities 
 
Financing activities 
 
Increase in an amount due from              3,052         211            -             - 
director 
 
(Repayment of) /proceeds from               3,796       (850)            -             - 
shareholder loans 
 
Increase in loans due from                      -           -          895 
subsidiaries 
 
Increase in convertible loans                   -       6,904            -         6,904 
 
Principal portion of lease payment          (636)       (290)            -             - 
 
Net cash generated from Financing           6,212       5,975          895         6,904 
activities 
 
Net increase/(decrease) in cash and         2,309     (2,746)          191       (1,023) 
cash equivalents 
 
Cash and cash equivalents at 1                510       2,552          113           783 
January 
 
Effect of foreign exchange rate           (1,964)         704        (262)           353 
changes 
 
Cash and cash equivalents at 31               855         510           42           114 
December 
 
Represented by: 
 
Bank balance and cash                         855         510           42           114 
 
Notes to the financial statements 
 
1.    Reporting entities 
 
The Company is a UK incorporated entity with a registered number of 10028625. 
GVMH's head office is in Honk Kong from where it is managed. These consolidated 
financial statements comprise GVMH and its subsidiaries. GVMH and its 
subsidiaries are primarily involved in social media marketing and acting as 
commission agents . 
 
2.    Accounting policies 
 
2.1.  Statement of compliance 
 
The consolidated financial statements have been prepared in accordance with 
International Financial Reporting Standards ("IFRS") as adopted by the EU. 
 
2.2.  Basis of preparation of the financial statements 
 
The consolidated financial statements consolidate those of the Company and its 
subsidiaries (together the "Group" or "Grand Vision Media Holdings Plc"). The 
consolidated financial statements of the Group and the individual financial 
statements of the Company are prepared in accordance with applicable UK law and 
International Financial Reporting Standards ("IFRS") as adopted by the European 
Union and as applied in accordance with the provisions of the Companies Act 
2006. The Directors consider that the financial information presented in these 
Financial Statements represents fairly the financial position, operations and 
cash flows for the period, in conformity with IFRS. 
 
The consolidated financial statements include the financial statements of the 
Company and its subsidiaries and associated undertakings. All of the 
subsidiaries have the same reporting date of 31 December. 
 
2.3.  Application of new and revised International Financial Reporting 
Standards (IFRSs) 
 
Changes in accounting policies and disclosures 
 
In the current year, the Group has applied the Amendments to References to the 
Conceptual Framework in IFRS Standards and the following amendments to IFRSs 
for the first time, which are mandatorily effective for the annual period 
beginning on or after 1 January 2020 for the preparation of the consolidated 
financial statements: 
 
.       IFRS 3  "Business Combinations" 
 
.       IFRS 9, IAS 39 and IFRS 7 "Interest rate benchmark reform" 
 
.       IAS 1 and IAS 8 "Definition of Material" 
 
Except as described below, the application of the new and amendments to IFRSs 
in the current year has had no material impact on the Group's financial 
performance and positions for the current and prior years and/or on the 
disclosures set out in these consolidated financial statements. 
 
New and revised IFRSs in issue but not yet effective 
 
GVMH PLC and its subsidiaries has not applied the following new and revised 
IFRSs that have been issued but are not yet effective: 
 
                                                        Application date of 
      Reference                    Title                 standard (Periods 
                                                      commencing on or after) 
 
IFRS 17                Insurance Contracts and the    1 January 2023 
                      related Amendments 
 
Amendments to IFRS 3  Reference to the Conceptual     1 January 2022 
                      Framework 
 
Amendments to IFRS 9, Interest Rate Benchmark Reform  1 January 2021 
IAS 39, IFRS 7, IFRS  - Phase 2 
4 and IFRS 16 
 
Amendments to IFRS 16 COVID-19 Related Rent           1 June 2020 
                      Concessions 
 
Amendments to IAS 1   Classification of Liabilities   1 January 2023 
                      as Current or Non-current and 
                      related amendments to Hong Kong 
                      Interpretation 5 (2020) 
 
Amendments to IAS 16  Property, Plant and Equipment - 1 January 2022 
                      Proceeds before Intended Use 
 
Amendments to IAS 37  Onerous Contracts - Cost of     1 January 2022 
                      Fulfilling a Contract 
 
The Directors anticipate that the adoption of these standard and the 
interpretations in future period will have no material impact on the financial 
statements of the company. 
 
Foreign currency 
 
The functional currency of the Group is Hong Kong Dollars (HKD), its 
subsidiaries are also in HKD. The presentational currency of the Group is HKD 
because a significant amount of its transactions is in HKD. 
 
Transactions entered by the Group's entities in a currency other than the 
reporting currency are recorded at the rates ruling when the transaction occur. 
Foreign currency monetary assets and liabilities are translated at the rates 
ruling at the statement of financial position date. Exchange differences 
arising on the re-translation of outstanding monetary assets and liabilities 
are also recognised in the income statement. 
 
Going concern 
 
The Group meets its day to day working capital requirement through use of cash 
reserves and existing shareholder loans. The Directors have considered whether 
the going concern basis is applicable in the preparation of the financial 
statements. This included the review of internal budgets, forecasts and 
financial results which show that there is a reasonable expectation that the 
Group should be able to operate within the level of its current funding 
arrangement. 
 
The COVID-19 pandemic has had a significant effect on the Group's results since 
January 2020, as digital marketing spends across the customer base declined 
considerably. Furthermore, the closure of cinemas in China has adversely 
affected the OOH revenue stream. To mitigate against this, the Group has taken 
advantage of local stimulus wherever possible, and sought to cut costs whilst 
revenues are reduced. In Hong Kong, the Employment Support Scheme has provided 
assistance to pay wages from April 2020 to September 2020. Savings have also 
been made through reductions in rents to cinemas, office admin staff and some 
consolidation of office/storage space. 
 
The Group incurred a loss of HKD 10,050,000 for the year ended 31 December 2020 
and had net current liabilities of HK$ 17,239,000. This condition indicates the 
existence of a material uncertainty which may cast significant doubt on the 
Company's ability to continue as a going concern. Therefore, the Company may be 
unable to realise its assets. The financial statements do not include any 
adjustments that would result if the Group was unable to continue as a going 
concern. 
 
After careful consideration of the matters set out above and the support 
provided by a key shareholder, the Directors are of the opinion that the group 
will be able to undertake its planned activities for the period to 28 February 
2023 from reserves and shareholder funding and have prepared the consolidated 
financial statement on a going concern basis. 
 
Nevertheless, due to the uncertainties inherent in meeting its revenue 
predictions and obtaining obstacle funding these can be no certainty in these 
respects. The financial statements do not include any adjustments that would 
result if the group was unable to continue as a going concern. 
 
2.4.  Subsidiaries and non-controlling interests and GVMH PLC and its 
subsidiaries reorganisation accounting 
 
Subsidiaries are all entities over which Grand Vision Media Holdings Plc has 
the power to govern the financial and operating policies generally accompanying 
a shareholding of more than one half of the voting rights. The existence and 
effect of potential voting rights that are currently exercisable or convertible 
are considered when assessing whether the Group controls another entity. 
Subsidiaries are fully consolidated from the date on which control is 
transferred to the Company. They are de-consolidated from the date that control 
ceases. 
 
In June 2018, Grand Vision Media Holdings Plc ("Company") acquired the entire 
issued share capital of GVC Holdings Limited ("legal subsidiary") in exchange 
of issuance of shares to GVC Holdings Limited.  As the legal subsidiary is 
reversed into the Company (the legal parent), which originally was a publicly 
listed cash shell company, this transaction cannot be considered a business 
combination, as the Company, the accounting acquiree does not meet the 
definition of a business, under IFRS 3 'Business Combinations'.  However, the 
accounting for such capital transaction should be treated as a share- based 
payment transaction and therefore accounted for under IFRS 2 'Share-based 
payment'. Any difference in the fair value of the shares deemed to have been 
issued by the GVC Holdings Limited (accounting acquirer) and the fair value of 
Grand Vision Media Holdings PLC's (the accounting acquiree) identifiable net 
assets represents a service received by the accounting acquirer. 
 
Although the consolidated financial information has been issued in the name of 
Grand Vision Media Holdings PLC, the legal parent, it represents in substance 
continuation of the financial information of the legal subsidiary. 
 
The assets and liabilities of the legal subsidiary are recognized and measured 
in the Group financial statements at the pre-combination carrying amounts and 
not re-stated at fair value. 
 
The retained earnings and other reserves balances recognized in the Group 
financial statements reflect the retained earnings and other reserves balances 
of the legal subsidiary immediately before the business combination and the 
results of the period from June 2019 to the date of the business combination 
are those of the legal subsidiary only. 
 
The equity structure (share capital and share premium) appearing in the Group 
financial statements reflects the equity structure of Grand Vision Media 
Holdings PLC the legal parent.  This includes the shares issued in order to 
affect the business combination. 
 
2.5.  Available-for-sale investments 
 
Available-for-sale investments represent an investment in the securities. At 
the end of each reporting period the fair value is remeasured, with any 
resultant gain or loss being recognised in other comprehensive income and 
accumulated separately in equity in the fair value reserve. As an exception to 
this, investments in equity securities that do not have a quoted price in an 
active market for an identical instrument and whose fair value cannot otherwise 
be reliably measured are recognised in the statement of financial position at 
cost less impairment losses. Dividend income from equity securities and 
interest income from debt securities calculated using the effective interest 
method are recognised in profit or loss in accordance with the policies. 
Foreign exchange gains and losses resulting from changes in the amortised cost 
of debt securities are also recognised in profit or loss. 
 
When the investments are derecognised or impaired, the cumulative gain or loss 
recognised in equity is reclassified to profit or loss. Investments are 
recognised/derecognised on the date GVMH PLC and its subsidiaries commits to 
purchase/sell the investments or they expire. 
 
2.6.  Property, plant and equipment 
 
The property, plant and equipment are stated at cost less accumulated 
depreciation and impairment losses. Gains or losses arising from the retirement 
or disposal of an item of property, plant and equipment are determined as the 
difference between the net disposal proceeds and the carrying amount of the 
item and are recognised in profit or loss on the date of retirement or 
disposal. 
 
Depreciation is calculated to write off the cost of items of property, plant 
and equipment, less their estimated residual value, if any, using the 
straight-line method over their estimated useful lives as follows: 
 
Display panels and CMS                30% - 33.33% 
 
Computer equipment                    30% - 33.33% 
 
Furniture's and fixtures              30% - 33.33% 
 
Leasehold improvements                30% - 50% 
 
Both the useful life of an asset and its residual value, if any, are reviewed 
annually. 
 
The carrying value of the property, plant and equipment is compared to the 
higher of value in use and the fair value less costs to sell. If the carrying 
value exceeds the higher of the value in use and fair value less the costs to 
sell the asset, then the asset is impaired and its value reduced by recognising 
an impairment provision. 
 
2.7.  Impairment of non-financial assets, other than inventories 
 
At the end of each reporting period, property, plant and equipment and 
investments in a subsidiary are reviewed to determine whether there is any 
indication that those assets have suffered an impairment loss. If there is an 
indication of possible impairment, the recoverable amount of any affected asset 
(or GVC Holdings Ltd and its subsidiaries of related assets) is estimated and 
compared with its carrying amount. If an estimated recoverable amount is lower, 
the carrying amount is reduced to its estimated recoverable amount, and an 
impairment loss is recognised immediately in profit or loss. 
 
If an impairment loss subsequently reverses, the carrying amount of the asset 
(or GVC Holdings Ltd and its subsidiaries of related assets) is increased to 
the revised estimate of its recoverable amount, but not in excess of the amount 
that would have been determined had no impairment loss been recognised for the 
asset (GVC Holdings Ltd and its subsidiaries of related assets) in prior years. 
A reversal of an impairment loss is recognised immediately in profit or loss. 
 
2.8.  Inventories 
 
Inventories are valued at the lower of cost and net realisable value. Cost is 
calculated using the weighted average cost formula and comprises all costs of 
purchase, costs of conversion and other costs incurred in bringing the 
inventories to their present location and condition. Net realisable value is 
the estimated selling price in the ordinary course of business less the 
estimated costs to completion and the estimated costs necessary to make the 
sale. 
 
When inventories are sold, the carrying amount of those inventories is 
recognised as an expense in the period in which the related revenue is 
recognised. The amount of any write-down of inventories to net realisable value 
and all losses of inventories are recognised as an expense in the period the 
write down or loss occurs. The amount of any reversal of any write-down of 
inventories is recognised as a reduction in the amount of inventories 
recognised as an expense in the period in which the reversal occurs. 
 
2.9.  Trade and other receivables 
 
The Group classifies all its financial assets as trade and other receivables. 
The classification depends        on the purpose for which the financial assets 
were acquired. 
 
Trade receivables and other receivables that have fixed or determinable 
payments that are not quoted in an active market are classified as loans and 
receivables financial assets. Loans and receivables financial assets are 
measured at amortised cost using the effective interest method, less any 
impairment loss. 
 
The Group's loans and receivables financial assets comprise other receivables 
(excluding prepayments) and cash and cash equivalents included in the Statement 
of Financial Position. 
 
2.10. Cash and cash equivalents 
 
Cash and cash equivalents comprise cash and bank balance. Bank overdrafts that 
are repayable on demand and form an integral part of GVMH PLC's cash management 
are also included as a component of cash and cash equivalents for the purpose 
of the consolidated cash flow statement. 
 
2.11. Trade and other payables 
 
Trade and other payables are initially recognised at fair value. They are 
subsequently measured at amortised cost using the effective interest method 
unless the effect of discounting would be immaterial, in which case they are 
stated at cost. 
 
2.12. Shareholders loan 
 
Shareholders loans are initially recognised at fair value. They are 
subsequently measured at amortised cost using the effective interest method. 
The difference between the fair value and the carrying amortised cost (i.e. the 
effective interest portion) is first recognized in equity as capital 
contribution reserve. 
 
2.13. Employee benefits 
 
Short-term benefits 
 
Wages, salaries, paid annual leave and sick leave, bonuses and non-monetary 
benefits are accrued in the period in which the associated services are 
rendered by employees of the Group. 
 
2.14. Taxation 
 
(i) Current tax 
 
The tax currently payable is based on taxable profit for the period. Taxable 
profit differs from 'profit before tax' as reported in the statement of profit 
or loss because of items of income or expense that are taxable or deductible in 
other periods and items that are never taxable or deductible. Grand Vision 
Media Holding Plc's current tax is calculated using rates that have been 
enacted during the reporting period 
 
(ii) Deferred tax 
 
Deferred tax assets and liabilities are recognised where the carrying amount of 
an asset or liability in the statement of financial position differs from its 
tax base, except for differences arising on: 
 
.          the initial recognition of goodwill; 
 
.          the initial recognition of an asset or liability in a transaction 
which is not a business combination and at the time of the transaction affects 
neither accounting or taxable profit; and 
 
.          investments in subsidiaries where the Group is able to control the 
timing of the reversal of the difference and it is probable that the difference 
will not reverse in the foreseeable future. 
 
Recognition of deferred tax assets is restricted to those instances where it is 
probable that taxable profit will be available against which the difference can 
be utilised. 
 
The amount of the asset or liability is determined using tax rates that have 
been enacted or substantially enacted by the balance sheet date and are 
expected to apply when the deferred tax liabilities or assets are settled or 
recovered. Deferred tax balances are not discounted. 
 
Deferred tax assets and liabilities are offset when the Group has a legally 
enforceable right to offset current tax assets and liabilities. 
 
The Group is entitled to a tax deduction on the exercise of certain employee 
share options. A share-based payment expense is recorded in the income 
statement over the period from the grant date to the vesting date of the 
relevant options. As there is a temporary difference between the accounting and 
tax bases, a deferred tax asset may be recorded. The deferred tax asset arising 
on share option awards is calculated as the estimated amount of tax deduction 
to be obtained in the future (based on the Group's share price at the balance 
sheet date) pro-rated to the extent that the services of the employee have been 
rendered over the vesting period. If this amount exceeds the cumulative amount 
of the remuneration expense at the statutory rate, the excess is recorded 
directly in equity, against retained earnings. Similarly, current tax relief in 
excess of the cumulative amount of the Share-based payments expense at the 
statutory rate is also recorded in retained earnings. 
 
2.15. Provision and contingent liabilities 
 
Provisions are recognised for other liabilities of uncertain timing or amount 
when GVMH PLC and its subsidiaries or GVMH PLC has a legal or constructive 
obligation arising as a result of a past event, it is probable that an outflow 
of economic benefits will be required to settle the obligation and a reliable 
estimate can be made. Where the time value of money is material, provisions are 
stated at the present value of the expenditure expected to settle the 
obligation. 
 
Where it is not probable that an outflow of economic benefits will be required, 
or the amount cannot be estimated reliably, the obligation is disclosed as a 
contingent liability, unless the probability of outflow of economic benefits is 
remote. Possible obligations, whose existence will only be confirmed by the 
occurrence or non-occurrence of one or more future events are also disclosed as 
contingent liabilities unless the probability of outflow of economic benefits 
is remote. 
 
2.16. Revenue recognition 
 
After the adoption of IFRS 15, the company recognise revenue from contracts 
with customers when (or as) the company satisfies a performance obligation by 
transferring a promised good or service (i.e., an asset) to a customer. An 
asset is transferred When (or as) the customer obtains control of that asset. 
When (or as) a performance obligation is satisfied, the company recognises as 
revenue the amount of the transaction price (which includes estimates of 
variable consideration that are constrained in accordance with IFRS 15) that is 
allocated to that performance obligation. Further details of the company's 
revenue and other income recognition policies are as follows: 
 
(i)  Service income is recognised as income on a straight-line based over the 
term, unless another systematic basis is more representative of the time 
pattern of the user's benefit. 
 
(ii) Barter revenueis recognised only when the goods or services being 
exchanged are of a dissimilar nature. Barter revenue is measured at the fair 
value of goods or services rendered, adjusted by the amount of cash or cash 
equivalents received or paid. If the fair value of the goods or services 
rendered cannot be relaibly measured, the revenue is measured at the fair value 
of the goods or services received, again adjusted by the amount of cash or cash 
equivalents received 
 
(iii) Interest income is recognised on a time-proportion basis using the 
effective interest method. When a loan and receivable is impaired, the group 
reduces the carrying amount to its recoverable amount, being the estimated 
future cash flow discounted at the original effective interest rate of the 
instrument, and continues unwinding the discount as interest income. Interest 
income on impaired loan and receivables is recognised using the original 
effective interest rate. 
 
2.17. Translation of foreign currencies 
 
Foreign currency transactions during the year are translated at the foreign 
exchange rates ruling at the transaction dates. Monetary assets and liabilities 
denominated in foreign currencies are translated at the foreign exchange rates 
ruling at the end of the reporting period. Exchange gains and losses are 
recognised in profit or loss. 
 
Non-monetary assets and liabilities that are measured in terms of historical 
cost in a foreign currency are translated using the foreign exchange rates 
ruling at the transaction dates. 
 
Non-monetary assets and liabilities denominated in foreign currencies that are 
stated at fair value are translated using the foreign exchange rates ruling at 
the dates the fair value was measured. 
 
The results of foreign operations are translated into Hong Kong dollars at the 
exchange rates approximating the foreign exchange rates ruling at the dates of 
the transactions. Statement of financial position items, including goodwill 
arising on consolidation of foreign operations, are translated into Hong Kong 
dollars at the closing foreign exchange rates at the end of the reporting 
period. The resulting exchange differences are recognised in other 
comprehensive income and accumulated separately in equity in the exchange 
reserve. 
 
On disposal of a foreign operation, the cumulative amount of the exchange 
differences relating to that foreign operation is reclassified from equity to 
profit or loss when the profit or loss on disposal is recognised. 
 
Exchange rates used in these accounts : 
 
GBP/HKD : 10.59 
 
USD/HKD : 7.75 
 
RMB/HKD : 1.12 
 
SGD/HKD : 5.67 
 
2.18. Borrowing costs 
 
Borrowing costs represented a notional interest on shareholders' loan, which is 
accrued on time proportion basis taking into account of the shareholder loan 
outstanding and the interest applicable. 
 
2.19. Financial instruments 
 
IFRS 9 requires an entity to address the classification, measurement and 
recognition of financial assets and liabilities. 
 
a) Classification 
 
The Group classifies its financial assets in the following measurement 
categories: 
 
.           those to be measured subsequently at fair value (either through OCI 
or through profit or loss); and 
 
.           those to be measured at amortised cost. 
 
The classification depends on the Group's business model for managing the 
financial assets and the contractual terms of the cash flows. 
 
For assets measured at fair value, gains and losses will be recorded either in 
profit or loss or in OCI. For investments in equity instruments that are not 
held for trading, this will depend on whether the Group has made an irrevocable 
election at the time of initial recognition to account for the equity 
investment at fair value through other comprehensive income (FVOCI). 
 
The Group classifies financial assets as at amortised costs only if both of the 
following criteria are met: 
 
.           the asset is held within a business model whose objective is to 
collect contractual cash flows; and 
 
.           the contractual terms give rise to cash flows that are solely 
payment of principal and interest. 
 
b) Recognition 
 
Purchases and sales of financial assets are recognised on trade date (that is, 
the date on which the Group commits to purchase or sell the asset). Financial 
assets are de-recognised when the rights to receive cash flows from the 
financial assets have expired or have been transferred and the Group has 
transferred substantially all the risks and rewards of ownership. 
 
c) Measurement 
 
At initial recognition, the Group measures a financial asset at its fair value 
plus, in the case of a financial asset not at fair value through profit or loss 
(FVPL), transaction costs that are directly attributable to the acquisition of 
the financial asset. 
 
Transaction costs of financial assets carried at FVPL are expensed in profit or 
loss. 
 
Debt instruments 
 
Amortised cost: Assets that are held for collection of contractual cash flows, 
where those cash flows represent solely payments of principal and interest, are 
measured at amortised cost. Interest income from these financial assets is 
included in finance income using the effective interest rate method. Any gain 
or loss arising on derecognition is recognised directly in profit or loss and 
presented in other gains/(losses) together with foreign exchange gains and 
losses. Impairment losses are presented as a separate line item in the 
statement of profit or loss. 
 
d) Impairment 
 
The Group assesses, on a forward-looking basis, the expected credit losses 
associated with any debt instruments carried at amortised cost. The impairment 
methodology applied depends on whether there has been a significant increase in 
credit risk. For trade receivables, the Group applies the simplified approach 
permitted by IFRS 9, which requires expected lifetime losses to be recognised 
from initial recognition of the receivables. 
 
2.20. Segmental analysis 
 
In the opinion of the directors, the group has one class of business being 
social media advertising. The groups primary reporting format is determined by 
geographical segment. There is currently only one geographical reporting 
segment which is People's Republic of China. 
 
2.21. Leases 
 
Definition of a lease 
 
A contract is, or contains, a lease if the contract conveys the right to 
control the use of an identified asset for a period of time in exchange for 
consideration. 
 
For contracts entered into or modified or arising from business combinations on 
or after the date of initial application, the Group assesses whether a contract 
is or contains a lease based on the definition under IFRS 16 at inception, 
modification date or acquisition date, as appropriate. Such contract will not 
be reassessed unless the terms and conditions of the contract are subsequently 
changed. 
 
The Group as a lessee 
 
Allocation of consideration to components of a contract. 
 
For a contract that contains a lease component and one or more additional lease 
or non-lease components, the Group allocates the consideration in the contract 
to each lease component on the basis of the relative stand-alone price of the 
lease component and the aggregate stand-alone price of the non-lease components 
and the aggregate stand-alone price of non-lease components. 
 
Non-lease components are separated from lease component on the basis of their 
relative stand-alone prices. 
 
As a practical expedient, leases with similar characteristics are accounted on 
a portfolio basis when the Group reasonably expects that the effects on the 
consolidated financial statements would not differ materially from individual 
leases within the portfolio. 
 
Short-term leases 
 
The Group applies the short-term lease recognition exemption to leases that 
have a lease term of 12 months or less from the commencement date and do not 
contain a purchase option. Lease payments on short-term leases are recognised 
as expense on a straight-line basis or another systematic basis over the lease 
term. 
 
Right-of-use assets 
 
The cost of right-of-use asset includes: 
 
?  the amount of the initial measurement of the lease liability; 
 
?  any lease payments made at or before the commencement date, less any lease 
incentives received; 
 
?  any initial direct costs incurred by the Group; and 
 
?  an estimate of costs to be incurred by the Group in dismantling and removing 
the underlying assets, restoring the site on which it is located or restoring 
the underlying asset to the condition required by the terms and conditions of 
the lease. 
 
Right-of-use assets are measured at cost, less any accumulated depreciation and 
impairment losses, and adjusted for any remeasurement of lease liabilities. 
 
Right-of-use assets in which the Group is reasonably certain to obtain 
ownership of the underlying leased assets at the end of the lease term are 
depreciated from commencement date to the end of the useful life. Otherwise, 
right-of-use assets are depreciated on a straight-line basis over the shorter 
of its estimated useful life and the lease term. 
 
The Group presents right-of-use assets as a separate line item on the 
consolidated statement of financial position. 
 
Refundable rental deposits 
 
Refundable rental deposits paid are accounted under HKFRS 9 and initially 
measured at fair value. Adjustments to fair value at initial recognition are 
considered as additional lease payments and included in the cost of 
right-of-use assets. 
 
Lease liabilities 
 
When recognising the lease liabilities for leases previously classified as 
operating leases, the Group has applied incremental borrowing rates of the 
relevant group entities at the date of initial application. The incremental 
borrowing rates applied by the relevant group entities. 
 
The lease payments include: 
 
?  fixed payments (including in-substance fixed payments) less any lease 
incentives receivable; 
 
?  variable lease payments that depend on an index or a rate, initially 
measured using the index or rate as at the commencement date; 
 
?  amounts expected to be payable by the Group under residual value guarantees; 
. the exercise price of a purchase option if the Group is reasonably certain to 
exercise the option; and 
 
?  payments of penalties for terminating a lease, if the lease term reflects 
the Group exercising an option to terminate the lease. 
 
The Group presents lease liabilities as a separate line item on the 
consolidated statement of financial position. 
 
The Group as a lessor 
 
Classification and measurement of leases 
 
Leases for which the Group is a lessor are classified as finance or operating 
leases. Whenever the terms of the lease transfer substantially all the risk and 
rewards incidental to ownership of an underlying asset to the lessee, the 
contract is classified as a finance lease. All other leases are classified as 
operating lease. 
 
Amounts due from lessees under finance leases are recognised as receivables at 
commencement date at amounts equal to net investments in the leases, measured 
using the interest rate implicit in the respective lease. Initial direct costs 
(other than those incurred by manufacturer or dealer lessors) are included in 
the initial measurement of the net investments in the leases. Interest income 
is allocated to accounting periods so as to reflect a constant periodic rate of 
return on the Group's net investment outstanding in respect of the leases. 
 
Sublease 
 
When the Group is an intermediate lessor, it accounts for the head lease and 
the sublease as two separate contracts. The sublease is classified as a finance 
or operating lease by reference to the right-of-use asset arising from the head 
lease, not with reference to the underlying asset. 
 
2.22. Government grants 
 
Government grants are not recognised until there is reasonable assurance that 
the Group will comply with the conditions attaching to them and that the grants 
will be received. 
 
Government grants are recognised in profit or loss on a systematic basis over 
the periods in which the Group recognises as expenses the related costs for 
which the grants are intended to compensate. Specifically, government grants 
whose primary condition is that the Group should purchase, construct or 
otherwise acquire non-current assets are recognised as deferred income in the 
consolidated statement of financial position and transferred to profit or loss 
on a systematic and rational basis over the useful lives of the related assets. 
 
Government grants that are receivable as compensation for expenses or losses 
already incurred or for the purpose of giving immediate financial support to 
the Group with no future related costs are recognised in profit or loss in the 
period in which they become receivable. 
 
3.    Summary of Critical Accounting Estimates and judgements 
 
The preparation of financial information in conformity with IFRS requires the 
use of certain critical accounting estimates. It also requires the Directors to 
exercise their judgement in the process of applying the accounting policies 
which are detailed above. These judgements are continually evaluated by the 
Directors and management and are based on historical experience and other 
factors, including expectations of future events that are believed to be 
reasonable under the circumstances. 
 
The key estimates and underlying assumptions concerning the future and other 
key sources of estimation uncertainty at the statement of financial position 
date, that have a significant risk of causing a material adjustment to the 
carrying amounts of assets and liabilities within the next financial period are 
reviewed on an ongoing basis. Revisions to accounting estimates are recognised 
in the period in which the estimate is revised if the revision affects only 
that period, or in the period of the revision and future periods if the 
revision affects both current and future periods. 
 
The estimates and judgements which have a significant risk of causing a 
material adjustment to the carrying amount of assets and liabilities, as well 
as the recognition of revenue, within the next financial year are discussed 
below: 
 
. Recognising appropriate revenue in line with performance obligations 
 
Management identifies the performance obligations associated with each contract 
and then exercises judgement to establish an appropriate percentage of the 
total transaction price to recognise once each identified performance 
obligation is successfully completed. 
 
. Useful lives of depreciable assets 
 
Management reviews the useful lives and residual value of depreciable assets at 
each reporting date to ensure that the useful lives represent a reasonable 
estimate of likely period of benefit to the Group. Tangible fixed assets are 
depreciated over their useful lives taking into account of residual values, 
where appropriate. The actual lives of the assets and residual values are 
assessed annually and may vary depending on a number of factors. In 
re-assessing asset lives, factors such as technological innovation, product 
life cycles and maintenance programmes are taken into account. Residual value 
assessments consider issues such as future market conditions, the remaining 
life of the asset and projected disposal values. 
 
Company 
 
. Impairment of investment in subsidiary and intercompany balances 
 
Management reviews the expected future cashflows from the cash generating unit 
which are discounted to their present value using a pre-tax discount rate 
estimate of likely period of benefit to the Group.  The estimation of future 
cashflows is dependent on various factors  and may vary .  A full impairment 
against the carrying value has been booked in these financial statements. 
 
4.    Revenue 
 
Analysis of GVMH PLC and its subsidiaries' revenue is as follows: 
 
                                          Year ended  Year ended Year ended   Year ended 
 
                                         31 December 31 December         31  31 December 
                                                2020        2019   December         2019 
                                                                       2020 
 
                                             HK$'000     HK$'000    HK$'000      HK$'000 
 
Revenue 
 
Advertising fee income                            49       5,593          -            - 
 
Digital marketing income                       2,627       6,441          -            - 
 
Other                                          3,151           -          -            - 
 
                                               5,827      12,034          -            - 
 
Other income 
 
Sundry income                                  1,022         184          -            - 
 
Government grant                                 698 
 
                                               1,720         184          -            - 
 
                                               7,547      12,218          -            - 
 
Other Income represents rent, management and ad hoc professional services 
provided during the year. 
 
5.    Finance costs 
 
                                     Year ended  Year ended Year ended  Year ended 
 
                                             31 31 December         31 31 December 
                                       December        2019   December        2019 
                                           2020                   2020 
 
                                        HK$'000     HK$'000    HK$'000     HK$'000 
 
Finance costs 
 
Interest expense on lease                    31           7 
liabilities 
 
Interest on shareholder loans                 -         216 
 
Reverse on the overprovided               (142)           -          -           - 
shareholder loans 
 
                                          (111)         223 
 
6.    Administrative expenses 
 
                                     Year ended  Year ended Year ended  Year ended 
 
                                             31 31 December         31 31 December 
                                       December        2019   December        2019 
                                           2020                   2020 
 
                                        HK$'000     HK$'000    HK$'000     HK$'000 
 
Audit fees- Company and group               318         370        168         209 
 
Business development and marketing            4         181          -           - 
 
Share based payment                         975       1,319          -       1,320 
 
Depreciation                                843       2,350          -           - 
 
RTO, Legal and professional fee             607         490        281         304 
 
Office rental                               228         953          -           - 
 
Overseas travelling                          11         153          -           - 
 
Other                                     2,203       2,838        280         239 
 
Administrative expenses                   5,189       8,655        729       2,072 
 
Director's fees and emoluments*           1,320       1,380        600         521 
 
Wages and Salaries                        3,330       6,407          -           - 
 
                                          9,839      16,442      1,329       2,593 
 
*No pension contributions or other                       No.       No.         No. 
benefits 
Employee numbers                            No. 
 
Management                                    3            4         2           3 
 
Operations                                   16           18         -           - 
 
                                             19           22         2           3 
 
 
7.    Income tax expense 
 
No Hong Kong profits tax provision made in the accounts as GVMH PLC and its 
subsidiaries' do not have any assessable profits for the period. 
 
Reconciliation between tax expenses and accounting profit at applicable tax 
rates of 16.5%: 
 
                                     Year ended   Year ended      Year Year ended 
                                                                 ended 
 
                                             31  31 December        31         31 
                                       December         2019  December   December 
                                           2020                   2020       2019 
 
                                        HK$'000      HK$'000   HK$'000    HK$'000 
 
(Loss) / profit before tax             (10,050)     (15,095) (134,412)    (2,593) 
 
Notional tax on (loss) / profit         (1,658)      (2,491)  (22,178)      (428) 
before taxation, calculated at the 
rates applicable to (loss) / profit 
in the countries concerned 
 
Tax effect of non-taxable income              -            -         -          - 
 
Tax effect of not recognised tax          1,658        2,491    22,178        428 
loss 
 
Actual tax expenses                           -            -         -          - 
 
GVMH PLC and its subsidiaries has not recognised deferred tax assets of 
HK$3,102,251 (2019: HK$3,029,159) in respect of accelerated depreciation over 
capital allowances. No deferred tax asset has been recognised on the 
accumulated tax losses of HK$18,801,523 (2019:HK$18,358,340) as the 
availability of future taxable profits against which the assets can be utilised 
is uncertain at 31 December 2020. 
 
The tax losses can be carried forward to offset against the taxable profits of 
subsequent years for up to five years from the year in which they were incurred 
or there is no restriction on their expiry, depending on the tax jurisdiction 
concerned. 
 
8.    Earnings/ (Loss) per share 
 
The calculation of basic earnings per share is based on GVMH PLC and its 
subsidiaries' loss attributable to shareholders of GVMH PLC and weighted 
average number of shares in issue during the year, details are as follows: 
 
                                 Year ended  Year ended    Year ended  Year ended 
 
                                31 December 31 December   31 December 31 December 
                                       2020        2019          2020        2019 
 
                                    HK$'000     HK$'000       HK$'000     HK$'000 
 
Profit/loss attributable to        (10,050)    (15,095)     (134,412)     (2,593) 
GVMH PLC 
 
Weighted average number of       96,287,079  96,287,079    96,287,079  96,287,079 
shares 
 
Basic and diluted loss per           (0.10)      (0.16)        (1.40)     (0.027) 
share HK$ 
 
There were no potential dilutive ordinary shares in existence during the period 
ended 31 December 2020 or the years ended 31 December 2019, and hence diluted 
earnings per share is the same as the basic earnings per share. 
 
Property, plant and            Displays    Computer  Furniture,    Leasehold                                                       Total 
equipment                    panels and   equipment  fixtures &  improvement 
                                    CMS               equipment 
 
                                HK$'000     HK$'000     HK$'000      HK$'000                                                     HK$'000 
 
Cost 
 
At 31 December 2018              16,278         288         301           82                                                      16,949 
 
Additions during the year             -           9           -            -                                                           9 
2019 
 
Exchange realignment               (58)         (1)           -            -                                                        (59) 
 
At 31 December 2019              16,220         296         301           82                                                      16,899 
 
Additions during the year             -           -          42          206                                                         248 
2020 
 
Write-off                             -           -           -         (36)                                                        (36) 
 
Exchange realignment                166           2           -            -                                                         168 
 
At 31 December 2020              16,386         298         343          252                                                      17,279 
 
Accumulated depreciation 
 
At 31 December 2018              14,173         220         296           76                                                      14,765 
 
Charge for the year 2019          1,965          45           2            6                                                       2,018 
 
Written back on disposal           (49)           -           -            -                                                        (49) 
 
At 31 December 2019            16,089           265         298           82                                                      16,734 
 
Charge for the year 2020            129          29          15           69                                                         242 
 
Write-off                             -           -           -         (36)                                                        (36) 
 
Exchange realignment                168           1           -            -                                                         170 
 
At 31 December 2020              16,386         295         313          115 17,109 
 
Net carrying amount 
 
At 31 December 2020                   -           3          29          137                                                         170 
 
At 31 December 2019                 131          31           3            -                                                         165 
 
9.    Inventories 
 
                                         As at       As at       As at       As at 
 
                                  31 December  31 December 31 December 31 December 
                                          2020        2019        2020        2019 
 
Inventories                            HK$'000     HK$'000     HK$'000     HK$'000 
 
Goods                                        -           -           -           - 
 
Online resources                             -       1,004 
 
                                             -       1,004           -           - 
 
As at 31 December 2020, no provision for impairment on goods for the group has 
been made. The cost of inventory recognised as expenses is HK$1,004k (2019: 
HK$703k). 
 
10.  Right of use assets 
 
Set out below are the carrying amounts of right-of-use assets recognised and 
the movements during the year: 
 
Right of use assets                                         Leasehold 
                                                          improvement 
 
                                                              HK$'000 
 
At 1/1/2019                                                       308 
 
Additions during the year 2019                                  1,734 
 
Depreciation                                                    (332) 
 
At 1/1/2020                                                     1,710 
 
Additions during the year 2020                                      - 
 
Depreciation                                                    (602) 
 
At 31/12/2020                                                   1,108 
 
11.  Investments in Subsidiaries 
 
Company                                            2020               2019 
 
                                                 HK$'000           HK$'000 
 
Cost 
 
At 1 January                                 114,572          114,572 
 
Loans to subsidiaries                        18,512           18,107 
 
                                             ???????          ??????? 
 
At 31 December                               133,084          132,679 
 
                                             ???????          ??????? 
 
Impairment 
 
At 1 January                                 -                - 
 
Loans to subsidiaries                        (18,512)         - 
 
Investment in subsidiaries                   (114,572)        - 
 
                                             ???????          ??????? 
 
At 31 December                               (133,084)        - 
 
                                             ???????          ??????? 
 
Net Carrying Amount                          -                132,679 
 
                                             _________        _________ 
 
See note 25 for list of subsidiaries and their respective holdings. 
 
The recoverable amount of the investments has been determined to be the value 
in use of the cash flows generated from the continuing operations of the GVC 
Holdings Limited and its subsidiaries. In performing this assessment, 
management has applied the following assumptions and estimates: 
 
·    cash flows have been projected over a period of five years from 31 
December 2020, which management considers appropriate due to the nature of its 
advertising services and related income of medical equipment; 
 
·    cash inflow projections reflect the following key assumptions: 
 
·    revenues from the continued performance of marketing and advertising 
services for customers and commission revenues from medical equipment; 
 
·    revenues in the short to medium term are based on contracted amounts, 
contracts currently in negotiation and estimates of services to be performed; 
 
·    cash outflows, which include contract delivery costs, operating expenses, 
administrative expenses and capital spend are assumed to be consistent with 
current experience; 
 
·    revenue and cost of sales from 2021 are forecasted for a year on year 
growth of 0%, which is management's estimate of the average growth for the 
principal geography in which the entity operates; and 
 
·    a pre-tax discount rate of 5% has been applied in discounting cash flows 
to their present value, which has been benchmarked against available sources 
for comparable companies and geographical location of GVC Holdings Limited. 
 
Cash flow projections are most sensitive to the assumptions regarding: 
 
·    commission revenue from new contracts in completion; 
 
-     Growth in online marketing 
 
·    Changes to the level of panels currently in display at cinemas; 
 
·    Closing price for the panel per 2-week segments; and 
 
·    changes in the discount rate. 
 
At 31 December 2020, there was no headroom in respect of the carrying value of 
the parent company's investment in GVC Holdings Limited resulting in an 
impairment of the investment in GVC Holdings Limited would be necessary. 
 
12.  Trade and other receivables 
 
Note: Amounts due from related companies are unsecured, interest-free and 
repayable on demand. 
 
Receivables that was not impaired was as follows: 
 
                                          As at      As at      As at        As at 
 
                                 31 December            31         31  31 December 
                                 2020             December   December         2019 
                                                      2019       2020 
 
                                        HK$'000    HK$'000    HK$'000      HK$'000 
 
Prepayments                                 400        395         55           52 
 
Amount due from Subsidiaries                  -          -          -       18,107 
 
Neither past due or nor impaired          3,549      6,403          -            - 
 
                                          3,949      6,798         55       18,159 
 
Note: Trade receivables are stated after provisions for impairment of HK$3,549k 
(2019: HK$6,403k). The directors consider that the carrying amount of 
receivables is not materially different to their fair value. Amounts owed by 
subsidiaries are stated after provisions for impairment of HK$18,512k (2019: 
HK$Nil) 
 
13.  Cash and cash equivalents 
 
                                          As at      As at      As at        As at 
 
                                    31 December         31         31  31 December 
                                           2020   December   December         2019 
                                                      2019       2020 
 
Cash and cash equivalents               HK$'000    HK$'000    HK$'000      HK$'000 
 
Cash at bank and in hand                    855        510         43          114 
 
                                            855        510         43          114 
 
14.  Trade and other payables 
 
                                          As at      As at      As at        As at 
 
                               31 December 2020         31         31  31 December 
                                                  December   December         2019 
                                                      2019       2020 
 
Trade and other payables                HK$'000    HK$'000    HK$'000      HK$'000 
 
Trade payables                           14,282     13,051      1,894          862 
 
Other payables                                -          -          -            - 
 
Total trade and other payables           14,282     13,051      1,894          862 
 
15.  Share based payments 
 
The Group has a share ownership compensation scheme for Directors and Senior 
employees of the Group. In       accordance with the provisions of the plan, 
Directors and Senior employees may be granted options to purchase ordinary 
shares in the Company. 
 
The company issued options over 12,000,000 ordinary shares on 19 June 2018. The 
options vest annually over a 3 year period to 31 December 2020 and can be 
exercised at 22.5p per share during this period. 12,000,000 options have vested 
as at 31 December 2020. 
 
The fair value of equity-based share options granted is estimated at the date 
of grant using the Black-Scholes pricing model, taking into account the terms 
and conditions upon which the options have been granted. The calculated fair 
value of share options charged to the Group and Company financial statements in 
the year is HK$975k.(2019: HK$1,320k) 
 
The following are the inputs to the model for the options granted during the 
prior year: 
 
                                      Share        Share 
                                      Options      Options 
                                      2020         2019 
 
Exercise price                        0.225p       0.15p 
 
Share price at date of grant          0.15p        0.15p 
 
Risk free rate                        1.04%        1.04% 
 
Volatility                            50%          50% 
 
Expected Life                         3 Years      3 Years 
 
Fair Value                            0.0229999    0.03626798 
 
 
 
                                                    No. of Options                          WAEP 
 
As at 31 December 2018                                   4,000,000                          0.15 
 
Vested during the year                                                                      0.17 
                                                         4,000,000 
 
Forfeited/cancelled during the 
year                                                           -                             - 
 
Exchanged for shares                                                                           - 
                                                               - 
 
As at 31 December 2019                                                                      0.16 
                                                         8,000,000 
 
Vested during the year                                   4,000,000                         0.225 
 
Forfeited/cancelled during the 
year                                                           -                             - 
 
Exchanged for shares                                             -                             - 
 
As at 31 December 2020                                                                    0.1817 
                                                        12,000,000 
 
16.  Convertible loan 
 
On 19 July 2019 , the company issues £670k of convertible loan notes, which are 
redeemable on 1 July 2021 or convertible into shares at 15p per share at any 
time before this date. 
 
The holders of the loan notes have agreed to defer repayment of the loan until 
the Group has the funds available for repayment, and renegotiate the repayment 
date. 
 
Subsequent measurement at             2020         2019 
 
Term of loan in years                 1.5          1.5 
 
Annual interest rate for equivalent   12%          12% 
non-convertible 
 
Principal                             £670,000     £670,000 
 
Present value of principal at HKD     HKD5,968,259 HKD5,821,901 
 
17.  Shareholder loans 
 
                                          As at      As at      As at        As at 
 
                                    31 December         31         31  31 December 
                                           2020   December   December         2019 
                                                      2019       2020 
 
Shareholders' loan                      HK$'000    HK$'000    HK$'000      HK$'000 
 
Shareholders' loan at fair value          9,227      8,750        477            - 
 
Capital contribution reserve              (844)      (844)          -            - 
arising from effective interest 
portion 
 
Accrued effective interest paid             844        987          -            - 
to shareholders 
 
Shareholder's loan at amortised           9,227      8,893        477            - 
cost 
 
The shareholders' loan is unsecured, interest-free and repayable on demand. 
These loans will not be repaid until after 31 December 2021, and when funds 
permit. 
 
As the shareholders' loan is unsecured, interest-free and repayable on demand, 
the directors assumes that the shareholder's loan is expected to repay in year 
2023 and the available market interest rate for shareholder's loan of the same 
kind is at the best landing rate in Hong Kong plus 1% per annum which is also 
used to calculate the effective interest portion of such. 
 
18.  Share Capital 
 
(a)    Issued share capital 
 
Allotted,     Number of     Share Capital Share         Share         Share Premium 
called up and shares                      Capital       Premium 
fully paid 
ordinary 
shares of 10p 
each 
 
                            £             HK$           £             HK$ 
 
Balance at 31 96,287,079    9,628,708     96,017,186    4,422,954     44,105,565 
December 2019 
 
New Share     -             -             -             -             - 
issue 
 
Balance at 31 96,287,079    9,628,708     96,017,186    4,422,954     44,105,565 
December 2020 
 
 
(b)    Capital management 
 
GVMH PLC and its subsidiaries' objective when managing capital are to safeguard 
GVMH PLC and its subsidiaries' ability to continue as a going concern, so that 
it can continue to provide returns for shareholders and benefit for other 
stakeholders, and to provide an adequate return to shareholders. 
 
GVMH PLC and its subsidiaries manages the capital structure and makes 
adjustments to it in the light of changes in economic conditions and the risk 
characteristics of the underlying assets. In order to maintain or adjust the 
capital structure, GVMH PLC and its subsidiaries' may adjust the amount of 
dividends paid to shareholders, return capital to shareholders, issue new 
shares, or sell assets to reduce debt. No changes were made in the objectives, 
policies and processes during the year/period of 2019 and 2020. 
 
GVMH PLC and its subsidiaries' monitors' capital using a gearing ratio, which 
are calculated by dividing consolidated debts by consolidated total 
shareholder's equity. The Group's policy is to keep the gearing ratio at a 
reasonable level. The Group's gearing ratio was54% , and 75% as at 31 December 
2020 and 2019 respectively. 
 
19.  Financial instruments 
 
GVMH PLC and its subsidiaries has classified its financial assets in the 
following categories: 
 
                                     As at       As at       As at       As at 
 
                               31 December 31 December 31 December 31 December 
                                      2020        2019        2020        2019 
 
Loans and receivables              HK$'000     HK$'000     HK$'000     HK$'000 
 
Accounts and other receivables       3,549       6,403           -           - 
 
Amounts due from related                 -           -           -           - 
companies 
 
Deposits and prepayments               400         395          55          52 
 
Cash and cash equivalents              855         510          43         114 
 
Loans and receivables                4,804       7,308          98         166 
 
 
 
                                      As at       As at       As at       As at 
 
                                31 December 31 December 31 December 31 December 
                                       2020        2019        2020        2019 
 
Financial liabilities at            HK$'000     HK$'000     HK$'000     HK$'000 
amortised cost 
 
Trade and other payables             14,082      13,051       1,694         862 
 
Deposits received                        93           -           -           - 
 
Shareholders' loan                   15,195      14,715       6,444       5,822 
 
Lease liability (IFRS16)               1115       1,761           -           - 
 
Amount due to a director              3,567         515           -           - 
 
Financial liabilities at             32,937      30,042       8,138       6,684 
amortised cost 
 
GVMH PLC and its subsidiaries are exposed to credit risk, liquidity risk and 
market risk arising in the normal course of its business and financial 
instruments. GVMH PLC and its subsidiaries' and GVMH PLC's risk management 
objectives, policies and processes mainly focus on minimising the potential 
adverse effects of these risks on its financial performance and position by 
closely monitoring the individual exposure. 
 
(a)    Credit risk 
 
GVMH PLC and its subsidiaries are exposed to credit risk on financial assets, 
mainly attributable to trade and other receivables. It sets credit limits on 
each individual customer and prior approval is required for any transaction 
exceeding that limit. The customer with sound payment history would accumulate 
a higher credit limit. In addition, the overseas customers would normally be 
required to transact with GVMH PLC and its subsidiaries' and GVMH PLC by letter 
of credit in order to minimise GVMH PLC and its subsidiaries' credit risk 
exposure. 
 
At 31 December 2020, GVMH PLC and its subsidiaries has no concentration of risk 
and the maximum exposure to credit risk is represented by the carrying amount 
of each financial asset. 
 
(b)    Liquidity risk 
 
GVMH PLC and its subsidiaries is exposed to liquidity risk on financial 
liabilities. It manages its funds conservatively by maintaining a comfortable 
level of cash and cash equivalents in order to meet continuous operational 
need. 
 
Liquidity risk              Not later Later than one       Carrying 
                             than one  month and not         amount 
                                month   later than 5 
                                               years 
 
 
As at 31 December 2020 
 
Trade and other payables       14,282              -         14,282 
 
Deposits received                  92              -             92 
 
Shareholders' loan -            2,946              -          2,946 
current 
 
Convertible bonds                   -          5,968          5,968 
 
Shareholders' loan -                -          9,227          9,227 
non-current 
 
Amount due to Director          3,567              -          3,567 
 
                               20,887         15,195         36,082 
 
As at 31 December 2019 
 
Trade and other payables       13,051              -         13,051 
 
Deposits received                   -              -              - 
 
Shareholders' loan -               83                            83 
current 
 
Convertible bonds                   -          5,822          5,822 
 
Shareholders' loan -                -          8,893          8,893 
non-current 
 
Amount due to Director            515              -            515 
 
                               13,649         14,715         28,364 
 
GVMH PLC 
 
As at 31 December 2020 
 
Trade and other payables        1,894              -          1,894 
 
Convertible bonds                   -          5,968          5,968 
 
Shareholders' loan - non                         477            477 
current 
 
                                1,894          6,445          8,339 
 
As at 31 December 2019 
 
Trade and other payables          862              -            862 
 
Convertible bonds                   -          5,822          5,822 
 
Shareholders' loan - non            -              -              - 
current 
 
                                  862          5,822          6,684 
 
(c)     Interest rate risk 
 
The Group has no exposure on fair value interest rate risk. It also has 
exposure on cash flow interest rate risk which is mainly arising from its 
deposits with banks. 
 
GVMH PLC and its subsidiaries mainly holds fixed deposits with banks with 
maturity within 3 months and the exposure is considered not significant. In 
consequence, no material exposure on fair value interest rate risk is expected. 
Even that, GVMH PLC closely monitors the fair value fluctuation of the 
investments and disposes of them in case of significant increase in interest 
rate is foreseen. 
 
Sensitivity analysis 
 
At 31 December 2020, if interest rates as that date had been 100 basis points 
lower/higher with all other variables held constant, GVMH PLC loss for the year 
would have been HK$151,950 (2019: HK$80,427) higher/lower. 
 
(d)    Currency risk 
 
GVMH PLC and its subsidiaries purchases and sells in various foreign 
currencies, mainly US dollars and RMB that expose it to currency risk arising 
from such purchases and sales and the resulting receivables and the payables. 
 
GVMH PLC and its subsidiaries closely and continuously monitors the exposure on 
currency risk. Since HK dollars are pegged to US dollars, there is no 
significant exposure expected on US dollars transactions and balances. 
 
In respect of purchases and payables, GVMH PLC and its subsidiaries controls 
its volume of purchase orders to a tolerable level and avoids concentrating the 
purchases in a single foreign currency by diversifying such foreign currency 
risk exposure. 
 
In respect of sales and receivables, GVMH PLC and its subsidiaries sets a 
prudent credit limit to individual customers who transact with it in other 
foreign currencies. The directors' approval is required on the exposure to an 
individual customer or transaction that exceeds the limit. 
 
20.  Leases liabilities 
 
The Group has lease contracts for leasehold land and building used in its 
operations. Lease of leasehold land and building generally have lease terms 
between 2 to 3 years. The Group's obligations under its leases are secured by 
the lessor's title to the lease asset. Generally, the Group is restricted from 
assigning and subleasing the leased assets and some contracts require the Group 
to maintain certain financial ratios. There are several lease contracts that 
include extension and termination options and variable lease payments, which 
are further discussed below. 
 
The Group also has certain leases of leasehold land and building with lease 
terms of 12 months or less. The Company applies the 'short-term lease' 
recognition exemptions for these leases. 
 
Set out below are the carrying amounts of lease liabilities and the movements 
during the year: 
 
Lease liabilities 
 
At 1 January 2019 
 
New Leases 
 
Accretion of interes t recognised during the year 
 
At 31 December 2019 and 1 January 2020 
 
New leases 
 
Accretion of interest recognised during the year 
 
At 31 December 2020 
 
The following are the amounts recognised in profit or loss: 
 
                                                             2020 
 
                                                          HK$'000 
 
Interest on lease liabilities 
 
Depreciation of right-of-use assets 
 
Expenses relating to short-term leases 
 
Total amount recognised in profit or loss 
 
The Group had total cash outflows for leases of HK$636K and has non-cash 
additions to right-of-use assets and lease liabilities of HK$1,155k for the 
year (2019: HK$1,761k). 
 
At the commencement date of the lease, the Company recognises lease liabilities 
measured at the present value of lease payments to be made over the lease term. 
The lease payments include fixed payments (including in-substance fixed 
payments) less any lease incentives receivable, variable lease payments that 
depend on an index or a rate, and amounts expected to be paid under residual 
value guarantees. The lease payments also include the exercise price of a 
purchase option reasonably certain to be exercised by the Company and payments 
of penalties for terminating a lease, if the lease term reflects the Company 
exercising the option to terminate. The variable lease payments that do not 
depend on an index or a rate are recognised as expense in the period on which 
the event or condition that triggers the payment occurs. 
 
                                    Between 1 Between 2      Over 5 
                                         Year to 5 Year       years 
 
                                      HK$'000   HK$'000    HK $'000 
 
At 31 December 2020 
 
Lease Liabilities                          32     1,124           - 
 
At 31 December 2019 
 
Lease Liabilities                         554     1,180           - 
 
21.  Contingent liabilities 
 
At 31 December 2020, GVMH PLC and its subsidiaries did not have any contingent 
liabilities. 
 
22.  Material related party transactions 
 
Key management personnel compensation 
 
Key management are considered to be the directors of the Company. Details of 
their remuneration and equity holdings are disclosed in the Directors Report. 
 
Transactions with subsidiaries 
 
Transactions between the Group and its subsidiaries, which are related parties, 
have been eliminated on consolidation. The balance due from subsidiaries at the 
year end was HK$18,512k (2019: HK$18,107k). An impairment of HK$ 18,512k was 
booked at the year end. 
 
Transactions with shareholders (please include convertible loans and 
shareholder loans) 
 
During the year the company recognised interest receivable of HK$143k (2019: 
interest payable HK$216k). The balance due from shareholders which included the 
shareholders' loan and convertible bonds at the year end was HK$18,141k (2019: 
HK$ 14,798k). 
 
Save as those transactions and balances disclosed elsewhere in these financial 
statements with shareholders and directors and Cyber Lion Limited (a company 
controlled by Edward Ng and Ajay Rajpal), GVMH PLC and its subsidiaries had no 
material transactions with related parties. 
 
23.  Event after reporting period 
 
At 31 December 2020, GVMH PLC and its subsidiaries did not have material 
non-adjusting events after the report period that have significant impact on 
the financial position and operation of the Group. 
 
24.  List of subsidiaries 
 
As at 31 December 2020 the following list contains only the particulars of 
subsidiaries which principally affected the results, assets or liabilities of 
GVMH PLC and its subsidiaries. 
 
                                            Proportion of ownership interest 
 
Name of GVMH    Place of      Particulars  GVMH PLC and  Held by   Held by the Principal 
PLC             incorporation of issued    subsidiaries  GVMH PLC  subsidiary  activities 
                / operation   and paid-up  effective 
                              capital      interest 
 
GVC Holdings    BVI/Hong Kong US$10,862    100%          100%      -           Investment 
Ltd                                                                            holdings 
 
Billion Wise    BVI / Hong    US$10,862    100.0%        -         100%        Investment 
Investment Ltd  Kong                                                           holdings 
 
Founding        Hong Kong     HK$10,000    70.0%         -          70%        Social Media 
Technology                                                                     Marketing 
(Int'l) Ltd 
 
Grand Vision    BVI / Hong    US$10,843    100%          -         100%        Investment 
Communication   Kong                                                           holdings 
Ltd 
 
                                           (2019:79.87%)           (2019: 
                                                                   79.87%) 
 
Grand Vision    Hong Kong     HK$1,000,000 100%                    100%        Advertising 
Media Limited                                            - 
 
                                           (2019:79.87%)           (2019: 
                                                                   79.87%) 
 
Grand Vision    Hong Kong     HK$7,824,268 100.0%                  100.0%      3D panel 
Media Network                                            -                     advertising 
Limited 
 
Grand Vision    PRC/Hong Kong RMB832,987   100%                    100%        Advertising 
Media                                                    - 
(Technology) 
(Shenzhen) Ltd 
 
                                           (2019:79.87%)           (2019: 
                                                                   79.87%) 
 
Ying            Hong Kong     HK$4,900,000 55.0%         55%                   Social Media 
Interactive                                                        -           Marketing 
Marketing 
Services Ltd 
 
Shanghai        PRC           RBM5,874,000 100.0%                  100.0%      3D panel 
Hongshi Culture                                          -                     advertising 
Media Co., Ltd 
 
25.  Control 
 
At 31 December 2020, there is no one controlling party. 
 
 
 
END 
 
 

(END) Dow Jones Newswires

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