Hong Kong Exchanges and Clearing : INTERIM RESULTS ANNOUNCEMENT 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.

SINOMEDIA HOLDING LIMITED

中 視 金 橋 國 際 傳 媒 控 股 有 限 公 司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 00623)

INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2019

FINANCIAL SUMMARY

	For the	For the
	six months ended	six months ended
RMB'000	30 June 2019	30 June 2018	Change (%)
Revenue	656,714	819,066	-20%
(Loss)/profit from operations	(105,059)	67,898	-255%
(Loss)/profit attributable to equity
shareholders of the Company	(96,792)	41,882	-331%
(Losses)/earnings per share	(0.196)
- Basic and diluted (RMB)	0.082	-339%

REVENUE

	For the	For the
	six months ended	six months ended
RMB'000	30 June 2019	30 June 2018	Change (%)
TV media resources management	525,242		730,736		-28%
Integrated communication services
and Content operations	50,687		32,962		+54%
Digital marketing and Internet media	56,101		33,967		+65%
Rental income	29,749		28,853		+3%
Sales taxes and surcharges	(5,065)	(7,452)	-32%
	656,714		819,066

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The board of directors (the "Board") of SinoMedia Holding Limited ("SinoMedia" or the "Company") announces the unaudited results and financial position of the Company and its subsidiaries (collectively the "Group") for the six months ended 30 June 2019, with comparative figures for previous period.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the six months ended 30 June 2019

		Unaudited	Unaudited
		Six months ended 30 June
		2019			2018
	Note	RMB'000	RMB'000
Revenue		656,714		819,066
Cost of services		(694,798)	(669,970)
Gross (loss)/profit		(38,084)	149,096
Other revenue	4	2,114			373
Selling and marketing expenses		(26,750)	(29,631)
General and administrative expenses		(42,339)	(51,940)
(Loss)/profit from operations		(105,059)	67,898
Finance income	5(a)	8,456			8,132
Finance costs	5(a)	(106)	(187)
Net finance income		8,350		7,945
(Loss)/profit before taxation	5	(96,709)	75,843
Income tax	6	-	(34,646)
(Loss)/profit for the period		(96,709)	41,197
Attributable to:
Equity shareholders of the Company		(96,792)	41,882
Non-controlling interests		83		(685)
		(96,709)	41,197
(Losses)/earnings per share	7
Basic and diluted (RMB)		(0.196)	0.082

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2019

	Unaudited	Unaudited
	Six months ended 30 June
	2019		2018
	RMB'000	RMB'000
(Loss)/profit for the period	(96,709)	41,197
Other comprehensive (loss)/income
Items that may be reclassified subsequently to profit or loss:
Exchange translation differences	(79)	762
Other comprehensive (loss)/income for the period	(79)	762
Total comprehensive (loss)/income for the period	(96,788)	41,959
Attributable to:
Equity shareholders of the Company	(96,871)	42,644
Non-controlling interests	83		(685)
	(96,788)	41,959

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2019

		Unaudited	Audited
		At 30 June At 31 December
		2019		2018
	Note	RMB'000	RMB'000
Non-current assets		227,939
Property, plant and equipment	8		229,738
Investment property		569,977		576,684
Intangible assets		19,709		22,399
Goodwill		6,002		6,002
Trade and other receivables	9	815		865
Interests in associates		6,899		-
Other non-current financial assets		37,006		-
		868,347		835,688
Current assets
	1,737
Other current financial assets			1,737
Trade and other receivables	9	400,493		428,745
Pledged bank deposits		50		-
Time deposits with original maturity over		4,534
three months			8,514
Cash and cash equivalents		593,257		715,109
		1,000,071		1,154,105
Current liabilities
	129,389
Trade and other payables	10		121,656
Contract liabilities		274,916		241,275
Current taxation		10,470		37,508
Lease liabilities		2,194		-
		416,969		400,439
Net current assets		583,102		753,666
Total assets less current liabilities		1,451,449		1,589,354
Non-current liabilities
	596
Lease liabilities			-
NET ASSETS		1,450,853		1,589,354
CAPITAL AND RESERVES
	510,981
Share capital			510,981
Reserves		946,796		1,085,380
Total equity attributable to equity
shareholders of the Company		1,457,777		1,596,361
Non-controlling interests		(6,924)	(7,007)
TOTAL EQUITY		1,450,853		1,589,354

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

• Basis of preparation
  The condensed consolidated interim financial statements for the six months ended 30 June 2019 of the Group have been prepared in accordance with International Financial Reporting Standards ("IFRS"), International Accounting Standards and Interpretations issued by the International Accounting Standards Board ("IASB") and the requirements of the Hong Kong Companies Ordinance. As Hong Kong Financial Reporting Standards ("HKFRSs"), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") and accounting principles generally accepted in Hong Kong, are derived from and consistent with IFRSs, these financial statements also comply with HKFRSs. These financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the "Listing Rules").

The condensed consolidated interim financial statements have been prepared in accordance with the same accounting policies adopted in the 2018 annual financial statements, except for the accounting policy changes that are expected to be reflected in the 2019 annual financial statements.

• Changes in accounting policies
  The IASB/HKICPA has issued a new IFRS/HKFRS, IFRS/HKFRS 16, Leases, and a number of amendments to IFRS/HKFRSs that are first effective for the current accounting period of the Group. Except for IFRS/HKFRS 16, Leases, none of the developments have had a material effect on how the Group's results and financial position for the current or prior periods have been prepared or presented in this interim financial report. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.
  IFRS/HKFRS 16, Leases
  IFRS/HKFRS 16 replaces IAS/HKAS 17, Leases, and the related interpretations, HK(IFRIC) 4,
  Determining whether an arrangement contains a lease, HK(SIC) 15, Operating leases - incentives, and HK(SIC) 27, Evaluating the substance of transactions involving the legal form of a lease. It introduces a single accounting model for lessees, which requires a lessee to recognise a right-of-useasset and a lease liability for all leases, except for leases that have a lease term of 12 months or less and leases of low value assets. The lessor accounting requirements are brought forward from IAS/ HKAS 17 substantially unchanged.
  The Group has initially applied IFRS/HKFRS 16 as from 1 January 2019. The Group has elected to use the modified retrospective approach and has therefore recognised the cumulative effect of initial application as an adjustment to the opening balance of assets and liabilities at 1 January 2019. Comparative information has not been restated and continues to be reported under IAS/HKAS 17.

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