Hong Kong Exchanges and Clearing : ANNOUNCEMENT OF THE INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2019

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

A8 New Media Group Limited

A8新媒體集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 800)

ANNOUNCEMENT OF THE INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2019

FINANCIAL HIGHLIGHTS

• For the six months ended 30 June 2019, the loss attributable to equity holders of the Company amounted to approximately RMB11.8 million, while it was a profit of approximately RMB33.1 million for the corresponding period in 2018.
• For the six months ended 30 June 2019, the revenue of the Group amounted to approximately RMB60.2 million, representing a decrease of approximately 24.3% from approximately RMB79.5 million for the corresponding period in 2018.
• For the six months ended 30 June 2019, the overall gross margin ratio of the Group was approximately 38.2%, while it was approximately 48.6% for the corresponding period in 2018.
• Strong balance sheet, with cash and bank balance and highly liquid short-term assets of approximately RMB597.9 million and net assets of approximately RMB1,441.3 million as of 30 June 2019.

The board of directors (the "Board") of A8 New Media Group Limited (the "Company") announces the unaudited interim financial information ("Interim Accounts") of the Company and its subsidiaries (collectively referred to as the "Group") for the six months ended 30 June 2019. The Interim Accounts have not been reviewed by the Company's auditors but they have been reviewed by the audit committee of the Company.

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CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the six months ended 30 June 2019

		For the six months
		ended 30 June
		2019		2018
		(Unaudited)	(Unaudited)
	Notes	RMB'000	RMB'000
REVENUE, net of taxes and surcharges	4	58,696		77,807
Cost of services provided		(35,710)	(39,143)
Gross profit		22,986		38,664
Other income and gains, net	4	10,051		48,898
Selling and marketing expenses		(4,131)	(22,123)
Administrative expenses		(29,309)	(22,940)
Other expenses, net		(21,958)	(378)
Finance costs	5	(3,743)	(3,888)
Share of profits and losses of associates, net		6,003		3,721
PROFIT/(LOSS) BEFORE TAX	6	(20,101)	41,954
Income tax credit/(expense)	7	4,723		(10,285)
PROFIT/(LOSS) FOR THE PERIOD		(15,378)	31,669
Attributable to:
	(11,778)
Owners of the Company		33,068
Non-controlling interests		(3,600)	(1,399)
		(15,378)	31,669
EARNINGS/(LOSS) PER SHARE
ATTRIBUTABLE TO EQUITY
HOLDERS OF THE COMPANY	9
Basic (RMB per share)		(0.44 cent)	1.2 cent
Diluted (RMB per share)		(0.44 cent)	1.2 cent

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 30 June 2019

	For the six months
	ended 30 June
	2019		2018
	(Unaudited)	(Unaudited)
	RMB'000	RMB'000
PROFIT/(LOSS) FOR THE PERIOD	(15,378)	31,669
OTHER COMPREHENSIVE INCOME/(LOSS)
Other comprehensive loss that may be reclassified to
profit or loss in subsequent periods:	(190)
Exchange differences on translation of financial statements	(1,945)
Other comprehensive income/(loss) that will not be
reclassified to profit or loss in subsequent periods:	(15,122)
Share of other comprehensive loss of an associate	-
Change in fair value of equity investments at fair value	31,527
through other comprehensive income/(loss), net of tax		(20,185)
Net other comprehensive income/(loss) that will not be
16,405
reclassified to profit or loss in subsequent periods		(20,185)
OTHER COMPREHENSIVE INCOME/(LOSS) FOR
THE PERIOD, NET OF TAX	16,215		(22,130)
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD	837		9,539
Attributable to:	4,437
Owners of the Company		10,938
Non-controlling interests	(3,600)	(1,399)
	837		9,539

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2019

		30 June	31 December
		2019		2018
		(Unaudited)	(Audited)
	Notes	RMB'000	RMB'000
NON-CURRENT ASSETS		139,844
Property, plant and equipment	10		144,720
Investment properties		433,000		438,000
Right-of-use assets		13,285		-
Prepaid land lease payments		-	12,546
Goodwill		53,366		53,366
Intangible assets		3,543		14,510
Network films and dramas		561		-
Investments in associates		260,935		270,054
Financial assets at fair value through profit or loss		148,711		163,964
Financial assets at fair value through other		142,418
comprehensive income			100,382
Deferred tax assets		1,605		1,843
Total non-current assets		1,197,268		1,199,385
CURRENT ASSETS
	3,663
Network films and dramas under production			19,116
Trade receivables	11	6,341		10,082
Prepayments, other receivables and other assets		12,352		25,365
Financial assets at fair value through profit or loss		11,282		15,796
Restricted cash balances and pledged deposits		250,741		274,533
Cash and cash equivalents		335,894		311,475
Total current assets		620,273		656,367
CURRENT LIABILITIES
	8,642
Trade payables	12		19,403
Other payables and accruals		53,753		75,775
Interest-bearing bank borrowings		180,000		195,058
Tax payable		8,141		9,114
Lease liabilities		595		-
Total current liabilities		251,131		299,350
NET CURRENT ASSETS		369,142		357,017
TOTAL ASSETS LESS CURRENT LIABILITIES		1,566,410		1,556,402

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		30 June		31 December
		2019	2018
		(Unaudited)		(Audited)
	Note	RMB'000		RMB'000
NON-CURRENT LIABILITIES		122,070
Deferred tax liabilities		116,624
Deferred income		3,085	4,070
Total non-current liabilities		125,155	120,694
Net assets		1,441,255	1,435,708
EQUITY
Equity attributable to owners of the Company		22,818
Issued capital	13	22,818
Reserves		1,411,993	1,403,765
		1,434,811	1,426,583
Non-controlling interests		6,444	9,125
Total equity		1,441,255	1,435,708

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