Unaudited revenue for the year ended 31 December 2019 has fallen short of the prior year, at HKD12,034K [2018 : HKD18,026K]. The decline in sales was predominantly as a result of reduced advertising revenues from the OOH cinema sector, and reduced digital marketing revenues. The social unrest in Hong Kong during the second half of 2019 resulted in a decline in Mainland Chinese tourists, leading to a reduction in advertising campaigns from customers.
In the first quarter of the year, the Company’s revenues have been adversely effected by COVID-19, as a result of increased restrictions on working and social gatherings in Hong Kong and China. The restrictions of movement in China, and closure of cinemas, have resulted in a reduction in OOH advertising spend. The border crossings in Hong Kong were restricted to Chinese tourists, and the Government announced social distancing guidelines for businesses, which have resulted in a decline in marketing spend by customers in Hong Kong.
The Company is not able to assess the effect of the current crisis on the results for the current year. It is not clear when trading conditions will return to normal, however, the Company has been able to leverage its marketing services to suppliers of personal protection and medical equipment, who have experienced a significant uplift in business during this recent period. The Company has expanded its marketing services to include e-commerce and supply chain management, with a view to maximizing revenue opportunities wherever possible. The Board will provide further updates in this regard at the time of releasing the audited results for the year ended 31 December 2019.
Following the FCA’s guidelines on the extended timetable for reporting of annual accounts during the current crisis, the Company is working towards reporting its audited final results, for the year ended 31 December 2019, by the end of June 2020. Further announcements in this regard will be made as appropriate.
The Directors accept responsibility for this announcement.
For more information:
|Grand Vision Media Holdings plc||http://gvmh.co.uk/|
|Jonathan Lo, Director||Tel: +44 (0) 20 7866 2145
|Alfred Henry Corporate Finance Ltd|
|Nick Michaels / Jon Isaacs||Tel: +44 (0) 20 3772 0021