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.

MEDIA CHINESE INTERNATIONAL LIMITED

世界華文媒體有限公司

(Incorporated in Bermuda with limited liability)

(Malaysia Company No. 200702000044)

(Hong Kong Stock Code: 685)

(Malaysia Stock Code: 5090)

ANNOUNCEMENT

FINANCIAL REPORT

FOR THE FIRST QUARTER ENDED

30 JUNE 2020

Pursuant to Paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad ("Bursa Securities"), Media Chinese International Limited (the "Company"), a public company listed on the main market of Bursa Securities, announced the unaudited condensed consolidated results of the Company and its subsidiaries (collectively the "Group") for the quarter ended 30 June 2020 to Bursa Securities on 28 August 2020.

This announcement is also made pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("HK Listing Rules") and the Inside Information Provisions (as defined under the HK Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

28 August 2020

As at the date of this announcement, the Board comprises Ms. TIONG Choon, Mr. TIONG Kiew Chiong and Mr. LEONG Chew Meng, being executive directors; Dato' Sri Dr. TIONG Ik King, being non-executive director; and Mr. YU Hon To, David, Datuk CHONG Kee Yuon and Mr. KHOO Kar Khoon, being independent non-executive directors.

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

(Unaudited)

(Unaudited)

Three months ended

Three months ended

30 June

30 June

2020

2019

2020

2019

US$'000

US$'000

RM'000

RM'000

(Note)

(Note)

Turnover

24,220

71,632

103,722

306,764

Cost of goods sold

(18,637)

(51,460)

(79,813)

(220,377)

Gross profit

5,583

20,172

23,909

86,387

Other income

2,286

2,291

9,790

9,811

Other gains/(losses), net

87

(72)

373

(308)

Selling and distribution

(6,553)

(10,996)

(28,063)

(47,090)

expenses

Administrative expenses

(5,961)

(6,701)

(25,528)

(28,697)

Other operating expenses

(1,231)

(1,281)

(5,273)

(5,487)

Operating (loss)/profit

(5,789)

3,413

(24,792)

14,616

Finance costs

(160)

(169)

(685)

(724)

(Loss)/profit before income

(5,949)

3,244

(25,477)

13,892

tax

Income tax credit/(expense)

67

(1,109)

287

(4,749)

(Loss)/profit for the quarter

(5,882)

2,135

(25,190)

9,143

(Loss)/profit attributable to:

Owners of the Company

(5,682)

2,264

(24,333)

9,695

Non-controlling interests

(200)

(129)

(857)

(552)

(5,882)

2,135

(25,190)

9,143

(Loss)/earnings per share

attributable to owners of

the Company

Basic (US cents/sen) #

(0.34)

0.13

(1.46)

0.56

Diluted (US cents/sen) #

(0.34)

0.13

(1.46)

0.56

  • Refer to B11 for calculations of basic and diluted (loss)/earnings per share

Note: The presentation currency of this unaudited financial information is United States Dollar ("US$"). Supplementary information in Malaysian Ringgit ("RM") for the quarter ended 30 June 2020 with comparatives is shown for reference only and has been made at the same exchange rate of US$1 to RM4.2825 ruling at 30 June 2020. This translation should not be construed as a representation that the US$ amounts actually represented have been, or could be, converted into RM at this or any other rate.

1

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

(Unaudited)

(Unaudited)

Three months ended

Three months ended

30 June

30 June

2020

2019

2020

2019

US$'000

US$'000

RM'000

RM'000

(Note)

(Note)

(Loss)/profit for the quarter

(5,882)

2,135

(25,190)

9,143

Other comprehensive

income/(loss)

Item that may be reclassified

subsequently to profit or

loss:

Currency translation

1,052

(1,716)

4,505

(7,349)

differences

Item that will not be

reclassified subsequently to

profit or loss:

Fair value change on financial

assets at fair value through

other comprehensive

143

(156)

612

(668)

income

Other comprehensive income/

1,195

(1,872)

5,117

(8,017)

(loss) for the quarter, net of tax

Total comprehensive (loss)/

(4,687)

263

(20,073)

1,126

income for the quarter

Total comprehensive (loss)/

income for the quarter

attributable to:

Owners of the Company

(4,525)

427

(19,379)

1,828

Non-controlling interests

(162)

(164)

(694)

(702)

(4,687)

263

(20,073)

1,126

Note: The presentation currency of this unaudited financial information is US$. Supplementary information in RM for the quarter ended 30 June 2020 with comparatives is shown for reference only and has been made at the same exchange rate of US$1 to RM4.2825 ruling at 30 June 2020. This translation should not be construed as a representation that the US$ amounts actually represented have been, or could be, converted into RM at this or any other rate.

2

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Unaudited)

(Audited)

(Unaudited)

(Unaudited)

As at

As at

As at

As at

30 June

31 March

30 June

31 March

2020

2020

2020

2020

US$'000

US$'000

RM'000

RM'000

(Note)

(Note)

ASSETS

Non-current assets

Property, plant and equipment

69,534

70,669

297,778

302,639

Investment properties

21,992

21,864

94,181

93,633

Intangible assets

8,997

9,146

38,530

39,168

Deferred income tax assets

120

120

514

514

Financial assets at fair value

through other comprehensive

income

1,411

1,267

6,043

5,426

Current assets

102,054

103,066

437,046

441,380

Inventories

22,815

20,039

97,706

85,817

Trade and other receivables

21,278

25,252

91,123

108,142

Financial assets at fair value

through profit or loss

1,197

425

5,126

1,820

Income tax recoverable

840

447

3,597

1,914

Short-term bank deposits

19,024

13,430

81,470

57,514

Cash and cash equivalents

55,661

60,452

238,368

258,886

Current liabilities

120,815

120,045

517,390

514,093

Trade and other payables

26,791

22,328

114,733

95,620

Contract liabilities

7,046

8,889

30,174

38,067

Dividend payable

1,687

-

7,225

-

Income tax liabilities

122

564

522

2,415

Bank and other borrowings

21,921

19,362

93,877

82,918

Lease liabilities

844

839

3,614

3,593

Current portion of other

non-current liabilities

60

60

257

257

58,471

52,042

250,402

222,870

Net current assets

62,344

68,003

266,988

291,223

Total assets less current liabilities

164,398

171,069

704,034

732,603

3

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued)

(Unaudited)

(Audited)

(Unaudited)

(Unaudited)

As at

As at

As at

As at

30 June

31 March

30 June

31 March

2020

2020

2020

2020

US$'000

US$'000

RM'000

RM'000

(Note)

(Note)

EQUITY

Equity attributable to owners of

the Company

Share capital

21,715

21,715

92,994

92,994

Share premium

54,664

54,664

234,099

234,099

Other reserves

(120,349)

(121,506)

(515,395)

(520,349)

Retained earnings

199,911

207,280

856,119

887,677

Non-controlling interests

155,941

162,153

667,817

694,421

483

645

2,068

2,762

Total equity

156,424

162,798

669,885

697,183

Non-current liabilities

Lease liabilities

1,145

1,354

4,903

5,799

Deferred income tax liabilities

5,429

5,533

23,250

23,694

Other non-current liabilities

1,400

1,384

5,996

5,927

7,974

8,271

34,149

35,420

164,398

171,069

704,034

732,603

Net assets per share attributable to

owners of the Company

(US cents /sen)

9.24

9.61

39.57

41.15

Note: The presentation currency of this unaudited financial information is US$. Supplementary information in RM as at 30 June 2020 with comparatives is shown for reference only and has been made at the same exchange rate of US$1 to RM4.2825 ruling at 30 June 2020. This translation should not be construed as a representation that the US$ amounts actually represented have been, or could be, converted into RM at this or any other rate.

4

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(Unaudited)

Attributable to owners of the Company

Share Share Other Retained

capital premium reserves earnings Sub-total US$'000 US$'000 US$'000 US$'000 US$'000

Non-

controlling Total

interests equity

US$'000 US$'000

At 1 April 2019

21,715

54,664

(113,173)

204,553

167,759

2,062

169,821

Profit/(loss) for the period

-

-

-

2,264

2,264

(129)

2,135

Other comprehensive (loss)/income

Item that may be reclassified subsequently to

profit or loss:

Currency translation differences

-

-

(1,723)

-

(1,723)

7

(1,716)

Item that will not be reclassified subsequently to

profit or loss:

Fair value change on financial assets at fair value

-

-

(114)

-

(114)

(42)

(156)

through other comprehensive income

Other comprehensive loss, net of tax

-

-

(1,837)

-

(1,837)

(35)

(1,872)

Total comprehensive (loss)/ income for the period

-

-

(1,837)

2,264

427

(164)

263

ended 30 June 2019

Total transactions with owners, recognised

directly in equity

2018/2019 second interim dividend

-

-

-

(1,687)

(1,687)

-

(1,687)

-

-

-

(1,687)

(1,687)

-

(1,687)

At 30 June 2019

21,715

54,664

(115,010)

205,130

166,499

1,898

168,397

5

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)

(Unaudited)

Attributable to owners of the Company

Share

Share

Other

Retained

Non-

controlling

Total

capital

premium

reserves

earnings

Sub-total

interests

equity

US$'000 US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

At 1 April 2020

21,715

54,664

(121,506)

207,280

162,153

645

162,798

Loss for the period

-

-

-

(5,682)

(5,682)

(200)

(5,882)

Other comprehensive income/(loss)

Item that may be reclassified subsequently to

profit or loss:

Currency translation differences

-

-

1,053

-

1,053

(1)

1,052

Item that will not be reclassified subsequently to

profit or loss:

Fair value change on financial assets at fair value

-

-

104

-

104

39

143

through other comprehensive income

Other comprehensive income, net of tax

-

-

1,157

-

1,157

38

1,195

Total comprehensive income/(loss) for the period

-

-

1,157

(5,682)

(4,525)

(162)

(4,687)

ended 30 June 2020

Total transactions with owners, recognised

directly in equity

2019/2020 second interim dividend

-

-

-

(1,687)

(1,687)

-

(1,687)

-

-

-

(1,687)

(1,687)

-

(1,687)

At 30 June 2020

21,715

54,664

(120,349)

199,911

155,941

483

156,424

6

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)

(Unaudited)

Attributable to owners of the Company

Non-

Share

Share

Other

Retained

controlling

Total

capital

premium

reserves

earnings

Sub-total

interests

equity

RM'000

RM'000

RM'000

RM'000

RM'000

RM'000

RM'000

(Note)

(Note)

(Note)

(Note)

(Note)

(Note)

(Note)

At 1 April 2019

92,994

234,099

(484,663)

875,998

718,428

8,831

727,259

Profit/(loss) for the period

-

-

-

9,695

9,695

(552)

9,143

Other comprehensive (loss)/income

Item that may be reclassified subsequently to

profit or loss:

Currency translation differences

-

-

(7,379)

-

(7,379)

30

(7,349)

Item that will not be reclassified subsequently

to profit or loss:

Fair value change on financial assets at fair value

-

-

(488)

-

(488)

(180)

(668)

through other comprehensive income

Other comprehensive loss, net of tax

-

-

(7,867)

-

(7,867)

(150)

(8,017)

Total comprehensive (loss)/income for the period

-

-

(7,867)

9,695

1,828

(702)

1,126

ended 30 June 2019

Total transactions with owners, recognised

directly in equity

2018/2019 second interim dividend

-

-

-

(7,225)

(7,225)

-

(7,225)

-

-

-

(7,225)

(7,225)

-

(7,225)

At 30 June 2019

92,994

234,099

(492,530)

878,468

713,031

8,129

721,160

Note: The presentation currency of this unaudited financial information is US$. Supplementary information in RM for the period ended 30 June 2020 with comparatives is shown for reference only and has been made at the same exchange rate of US$1 to RM4.2825 ruling at 30 June 2020. This translation should not be construed as a representation that the US$ amounts actually represented have been, or could be, converted into RM at this or any other rate.

7

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)

(Unaudited)

Attributable to owners of the Company

Non-

Share

Share

Other

Retained

controlling

Total

capital

premium

reserves

earnings

Sub-total

interests

equity

RM'000

RM'000

RM'000

RM'000

RM'000

RM'000

RM'000

(Note)

(Note)

(Note)

(Note)

(Note)

(Note)

(Note)

At 1 April 2020

92,994

234,099

(520,349)

887,677

694,421

2,762

697,183

Loss for the period

-

-

-

(24,333)

(24,333)

(857)

(25,190)

Other comprehensive income/(loss)

Item that may be reclassified subsequently to

profit or loss:

Currency translation differences

-

-

4,509

-

4,509

(4)

4,505

Item that will not be reclassified subsequently

to profit or loss:

Fair value change on financial assets at fair value

-

-

445

-

445

167

612

through other comprehensive income

Other comprehensive income, net of tax

-

-

4,954

-

4,954

163

5,117

Total comprehensive income/(loss) for the period

-

-

4,954

(24,333)

(19,379)

(694)

(20,073)

ended 30 June 2020

Total transactions with owners, recognised

directly in equity

2019/2020 second interim dividend

-

-

-

(7,225)

(7,225)

-

(7,225)

-

-

-

(7,225)

(7,225)

-

(7,225)

At 30 June 2020

92,994

234,099

(515,395)

856,119

667,817

2,068

669,885

Note: The presentation currency of this unaudited financial information is US$. Supplementary information in RM for the period ended 30 June 2020 with comparatives is shown for reference only and has been made at the same exchange rate of US$1 to RM4.2825 ruling at 30 June 2020. This translation should not be construed as a representation that the US$ amounts actually represented have been, or could be, converted into RM at this or any other rate.

8

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

(Unaudited)

Three months ended

Three months ended

30 June

30 June

2020

2019

2020

2019

US$'000

US$'000

RM'000

RM'000

(Note)

(Note)

Cash flows from operating activities

Cash (used in)/generated from operations Interest paid

Income tax paid

Net cash (used in)/generated from operating activities

Cash flows from investing activities

Dividends received

Increase in short-term bank deposits with original maturity over three months

Interest received

Proceeds from disposal of property, plant and equipment

Purchases of intangible assets

Purchases of property, plant and equipment

Purchases of financial assets at fair value through profit or loss

Net cash used in investing activities

Cash flows from financing activities

Proceeds from bank and other borrowings Repayments of bank and other borrowings Principal elements of lease liabilities

Net cash generated from /(used in) financing activities

Net (decrease)/increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

Exchange adjustments on cash and cash equivalents

Cash and cash equivalents at end of period

(229)

7,471

(981)

31,994

(160)

(160)

(685)

(685)

(892)

(1,035)

(3,820)

(4,432)

(1,281)

6,276

(5,486)

26,877

12

11

51

47

(5,594)

(348)

(23,956)

(1,490)

306

361

1,310

1,546

1

6

4

26

(11)

(29)

(47)

(124)

(146)

(218)

(625)

(934)

(761)

-

(3,259)

-

(6,193)

(217)

(26,522)

(929)

3,917

1,205

16,775

5,160

(1,376)

(2,615)

(5,893)

(11,199)

(212)

(168)

(908)

(719)

2,329

(1,578)

9,974

(6,758)

(5,145)

4,481

(22,034)

19,190

60,452

69,204

258,886

296,366

354

(525)

1,516

(2,248)

55,661

73,160

238,368

313,308

Note: The presentation currency of this unaudited financial information is US$. Supplementary information in RM for the period ended 30 June 2020 with comparatives is shown for reference only and has been made at the same exchange rate of US$1 to RM4.2825 ruling at 30 June 2020. This translation should not be construed as a representation that the US$ amounts actually represented have been, or could be, converted into RM at this or any other rate.

9

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

  1. NOTES TO THE FINANCIAL INFORMATION
    A1. Basis of preparation

This condensed consolidated financial information of the Company and its subsidiaries (collectively the "Group") for the quarter ended 30 June 2020 ("this financial information") has been prepared in accordance with the International Accounting Standard ("IAS") 34 "Interim Financial Reporting" issued by the International Accounting Standards Board, Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("HK Listing Rules") and paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad ("Bursa Listing Requirements").

This financial information should be read in conjunction with the annual financial statements for the year ended 31 March 2020 which were prepared in accordance with International Financial Reporting Standards ("IFRSs").

This financial information has not been audited.

A2. Accounting policies

The accounting policies adopted are consistent with those of the previous financial year except for the adoption of new and amended standards as set out below.

  1. New and amended standards and interpretations adopted by the Group
    The Group has applied the following standards and amendments for the first time for its annual reporting period commencing 1 April 2020:
    • Amendments to IAS 1 and IAS 8, "Definition of material"
    • Amendments to IFRS 3, "Definition of a business"
    • Amendments to IAS 39, IFRS 7 and IFRS 9, "Interest rate benchmark reform"
    • Conceptual Framework for Financial Reporting 2018, "Revised conceptual framework for financial reporting"

The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.

  1. New standards and interpretations not yet adopted
    Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2020 reporting periods and have not been early adopted by the Group.

Effective for annual

periods beginning

on or after

Amendments to IAS 1

Classification of liabilities as current or

1 January 2023

non-current

Amendments to IAS 16

Property, plant and equipment: proceeds

1 January 2022

before intended use

Amendments to IAS 37

Onerous contracts - cost of fulfilling a

1 January 2022

contract

Amendments to IFRS 3

Reference to the conceptual framework

1 January 2022

Amendments to IFRS 10

Sale or contribution of assets between an

Effective Date

and IAS 28

investor and its associate or joint venture

to be determined

Amendments to IFRS 16

COVID-19-related rent concessions

1 June 2020

IFRS 17

Insurance contracts

1 January 2023

Annual improvements

Annual improvements to IFRSs 2018-2020

1 January 2022

cycle

None of these new standards and interpretations are expected to have a material impact on the Group's consolidated financial statements.

10

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

  1. NOTES TO THE FINANCIAL INFORMATION (Continued)

A3. Functional currency and translation to presentation currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates, i.e. the functional currency. The functional currency of the Company is Malaysian Ringgit ("RM"). However, each entity within the Group can present its financial statements in any currency, which can be the same or different from the entity's functional currency. As the Group operates internationally, management considers that it is more appropriate to use United States Dollar ("US$"), a globally recognised currency, as the presentation currency for the Group's consolidated financial statements. For the entity whose functional currency is not US$, its results and financial position have been translated into US$.

The assets and liabilities of each entity within the Group are mostly denominated in its own functional currency and do not have material impact on the consolidated statement of profit or loss for the period.

During the period ended 30 June 2020, the Group is particularly exposed to movements in the US$ to RM exchange rate as a major part of the Group's operations is located in Malaysia.

A4. Auditor's report on preceding annual financial statements

The auditor's report of the Group's annual financial statements for the year ended 31 March 2020 was not subject to any qualification.

A5. Seasonal or cyclical factors

The business operations of the Group may be affected by major festive seasons or major events that may increase or decrease the advertising revenue and the travel business revenue.

A6. Unusual items

There were no unusual items affecting the Group's assets, liabilities, equity, net income or cash flows during the quarter under review except that the Group's business activities were affected by the COVID-19 pandemic and the measures taken to contain the outbreak by the governments in countries where the Group has business operations as disclosed in Notes B1 and B2.

A7. Changes in estimates

There were no material changes in estimates of amounts reported in prior financial years that have a material effect on the results of the quarter under review.

A8. Changes in debt and equity securities

There were no issuance, cancellation, repurchase, resale and repayment of debt and equity securities during the quarter under review.

A9. Dividends paid

There was no dividend paid during the current quarter.

11

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

  1. NOTES TO THE FINANCIAL INFORMATION (Continued)

A10. Turnover and segment information

The Group Executive Committee is the Group's chief operating decision-maker. Management has determined the operating segments based on the reports that are reviewed and used by the Group Executive Committee for strategic decision-making.

The Group is organised operationally on a worldwide basis in four major operating segments:

Publishing and printing: Malaysia and other Southeast Asian countries

Publishing and printing: Hong Kong and Taiwan

Publishing and printing: North America

Travel and travel related services

Publishing and printing segments are engaged in the publication, printing and distribution of newspapers, magazines, books and digital contents primarily in the Chinese language. The segments derive revenue mainly from the provision of advertising services and sales of newspapers and magazines. Travel and travel related services segment derives revenue from the sales of travel packages and provision of tour services.

The Group Executive Committee assesses the performance of the operating segments based on a measure of segment profit before income tax as presented in the internal financial report. Other information provided is measured in a manner consistent with that in the internal financial report.

The Group's turnover and results for the quarter ended 30 June 2020, analysed by operating segment, are as follows:

(Unaudited)

Three months ended 30 June 2020

Publishing and printing

Travel

Malaysia

and other

and

Southeast

Hong Kong

travel

Asian

and

North

related

countries

Taiwan

America

Sub-total

services

Total

US$'000

US$'000 US$'000 US$'000

US$'000 US$'000

Turnover

14,276

8,605

1,290

24,171

49

24,220

Segment (loss)/profit before

income tax

(3,636)

(1,921)

124

(5,433)

(374)

(5,807)

Other net unallocated expenses

(142)

Loss before income tax

(5,949)

Income tax credit

67

Loss for the quarter

(5,882)

Other segmental information:

Interest income

300

-

1

301

5

306

Finance costs

(13)

(130)

-

(143)

(17)

(160)

Depreciation of property,

plant and equipment

(1,185)

(299)

(39)

(1,523)

(210)

(1,733)

Amortisation of intangible assets

(198)

(26)

(2)

(226)

(1)

(227)

12

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

  1. NOTES TO THE FINANCIAL INFORMATION (Continued)
    A10. Turnover and segment information (Continued)

The Group's turnover and results for the quarter ended 30 June 2019, analysed by operating segment, are as follows:

(Unaudited)

Three months ended 30 June 2019

Publishing and printing

Travel

Malaysia

and other

and

Southeast

Hong Kong

travel

Asian

and

North

related

countries

Taiwan

America

Sub-total

services

Total

US$'000

US$'000 US$'000 US$'000

US$'000 US$'000

Turnover

27,246

11,737

2,943

41,926

29,706

71,632

Segment profit/(loss) before

2,491

(1,148)

(9)

1,334

2,098

3,432

income tax

Other net unallocated expenses

(188)

Profit before income tax

3,244

Income tax expense

(1,109)

Profit for the quarter

2,135

Other segmental information:

Interest income

335

7

6

348

13

361

Finance costs

(11)

(149)

-

(160)

(9)

(169)

Depreciation of property,

plant and equipment

(1,304)

(291)

(48)

(1,643)

(177)

(1,820)

Amortisation of intangible assets

(177)

(29)

(2)

(208)

(7)

(215)

Disaggregation of revenue

Turnover is derived from publishing, printing and distribution of newspapers, magazines, books and digital contents primarily in the Chinese language, and provision of travel and travel related services.

Turnover recognised during the quarter is disaggregated as follows:

(Unaudited)

Three months ended

2020

30 June

2019

By major products or service lines

US$'000

US$'000

Timing of revenue recognition

At a point in time

Sales of newspapers, magazines, books and digital contents,

net of trade discounts and returns

11,917

14,652

Travel and travel related services income

5

302

Over time

Advertising income, net of trade discounts

12,254

27,274

Travel and travel related services income

44

29,404

24,220

71,632

13

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

  1. NOTES TO THE FINANCIAL INFORMATION (Continued)
    A10. Turnover and segment information (Continued)
    The segment assets and liabilities as at 30 June 2020 are as follows:

(Unaudited)

Publishing and printing

Malaysia

Travel

and other

and

Southeast

Hong Kong

travel

Asian

and

North

related

countries

Taiwan

America Sub-total

services Elimination

Total

US$'000

US$'000 US$'000 US$'000

US$'000

US$'000

US$'000

Segment assets

157,174

36,500

13,046

206,720

15,498

(414)

221,804

Unallocated assets

1,065

Total assets

222,869

Total assets include:

Additions to non-current assets

(other than deferred income

tax assets)

81

76

-

157

-

-

157

Segment liabilities

(14,611)

(31,160)

(7,889)

(53,660)

(4,564)

414

(57,810)

Unallocated liabilities

(8,635)

Total liabilities

(66,445)

The segment assets and liabilities as at 31 March 2020 are as follows:

(Audited)

Publishing and printing

Travel

Malaysia

and other

and

Southeast

Hong Kong

travel

Asian

and

North

related

countries

Taiwan America Sub-total

services Elimination

Total

US$'000

US$'000 US$'000 US$'000

US$'000

US$'000

US$'000

Segment assets

158,529

35,575

10,688

204,792

17,854

(642)

222,004

Unallocated assets

1,107

Total assets

223,111

Total assets include:

Additions to non-current assets

(other than deferred income

tax assets)

1,213

484

41

1,738

1,466

-

3,204

Segment liabilities

(12,458)

(28,872)

(6,063)

(47,393)

(6,126)

642

(52,877)

Unallocated liabilities

(7,436)

Total liabilities

(60,313)

14

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

  1. NOTES TO THE FINANCIAL INFORMATION (Continued)
    A10. Turnover and segment information (Continued)

The elimination between segments represents intercompany receivables and payables between segments.

Segment assets consist primarily of property, plant and equipment, investment properties, intangible assets, financial assets at fair value through other comprehensive income, inventories, trade and other receivables, financial assets at fair value through profit or loss, short-term bank deposits, and cash and cash equivalents. They mainly exclude deferred income tax assets and income tax recoverable of the Group.

Segment liabilities consist primarily of trade and other payables, contract liabilities, bank and other borrowings, lease liabilities and other non-current liabilities. They mainly exclude deferred income tax liabilities and income tax liabilities of the Group.

A11. Valuation of property, plant and equipment

There was no revaluation of the Group's property, plant and equipment during the quarter ended 30 June 2020.

A12. Subsequent material events

There were no subsequent material events of the Group.

A13. Changes in the composition of the Group

There were no material changes in the composition of the Group during the quarter under review.

A14. Capital commitments

Capital commitments outstanding as at 30 June 2020 are as follows:

Property, plant and equipment :

Authorised and contracted for

Authorised but not contracted for

Intangible assets:

Authorised and contracted for

Authorised but not contracted for

(Unaudited) US$'000

61

-

61

502

-

502

15

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

  1. NOTES TO THE FINANCIAL INFORMATION (Continued)
    A15. Related party transactions

(Unaudited)

Three months ended

2020

30 June

2019

Advertising income received from related companies

US$'000

US$'000

(1)

(note 1)

-

Provision of accounting and administrative services to

related companies (note 1)

-

(4)

Provision of engineering professional services by a

related company (note 1)

-

12

Provision of legal services by a related company (note 2)

6

18

Purchase of air tickets from a related company (note 1)

-

4

Purchase of honey from a related company (note 1)

2

-

Rental expenses paid to related companies (note 1)

23

23

Notes:

  1. Certain shareholders and directors of the Company are shareholders and/or directors of these related companies.
  2. A director of a subsidiary of the Company is an associate of the related company.
  3. All the transactions above have been entered into in the normal course of business and have been charged at predetermined rates agreed mutually by the parties involved.

16

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

  1. ADDITIONAL INFORMATION REQUIRED BY BURSA SECURITIES'
    MAIN MARKET LISTING REQUIREMENTS

B1. Analysis of performance

(Unaudited)

Three months ended

30 June

2020

2019

% Change

US$'000

US$'000

Turnover

24,220

71,632

-66.2%

(Loss)/profit before income tax

(5,949)

3,244

-283.4%

(EBITDA Loss) / EBITDA

(4,135)

5,087

-181.3%

The Group's turnover for the quarter under review fell 66.2% to US$24,220,000 from US$71,632,000 in the same quarter last year. This significant drop was primarily due to the negative impact of COVID-19 on the Group's publishing and printing segment and the travel segment which saw their revenue fall by 42.3% and 99.8% respectively. The revenue decline resulted in the Group reporting a loss before income tax of US$5,949,000 for the current quarter as compared to a profit before income tax of US$3,244,000 a year earlier.

EBITDA loss for the quarter was US$4,135,000, compared to an EBITDA of US$5,087,000 in the corresponding quarter last year.

During the current quarter, both the Malaysian Ringgit ("RM") and the Canadian dollar ("C$") weakened against the US dollar, resulting in a negative currency impact of about US$630,000 on the Group's turnover and a positive currency impact of about US$159,000 on the Group's loss before income tax.

Publishing and Printing

The turnover for the publishing and printing segment dropped to US$24,171,000 from US$41,926,000 in the corresponding quarter last year. The 42.3% decline was mainly due to the COVID-19 pandemic's adverse impact on the world economies and businesses, which led to a decline in the Group's advertising revenue from all its markets. This segment reported a loss before income tax of US$5,433,000, compared to a profit before income tax of US$1,334,000 in the previous year.

In the wake of the COVID-19 pandemic, most countries in Southeast Asia have imposed lockdown and other restrictions to curb the spreading of the coronavirus. In Malaysia, a Movement Control Order ("MCO") was imposed from mid-March to early June 2020 during which period workplaces had to close down except for essential services. The MCO had crippled the retail sector and negatively affected the advertising spending in Malaysia. The control on movements had also affected the delivery of newspapers and magazines and therefore impacted the segment's circulation revenue.

The slowdown in the economy of this region resulted in the Group's Malaysia and other Southeast Asian segment reporting a 47.6% decline in turnover to US$14,276,000 from US$27,246,000 a year earlier. The decline led to a loss before income tax of US$3,636,000 for the quarter, as opposed to a profit before income tax of US$2,491,000 a year ago.

Hong Kong's economy shrank by 9% year-on-year during the current quarter, as the pandemic continued to have a major adverse impact on the local economic activities. In tandem with this contraction, the turnover of the Group's Hong Kong and Taiwan segment declined by 26.7% year-on-year to US$8,605,000 and the segment's loss before income tax widened to US$1,921,000 from US$1,148,000 a year ago.

During the quarter, the Group's North America segment saw its turnover decline by 56.2% year-on-year to US$1,290,000 from US$2,943,000 as the region's economic environment remained challenging amid the pandemic. Despite the decline in revenue, the segment managed to achieve a profit before income tax of US$124,000 as opposed to a loss before income tax of US$9,000 in the same quarter last year, mainly attributed to cost savings and the Canadian government's relief measures which helped lower the segment's operating costs.

17

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

  1. ADDITIONAL INFORMATION REQUIRED BY BURSA SECURITIES'
    MAIN MARKET LISTING REQUIREMENTS (Continued)

B1. Analysis of performance (Continued)

Travel and travel related services

The COVID-19 pandemic and subsequent lockdown measures have brought the tourism industry to a standstill, causing significant revenue loss for the Group's travel segment. The turnover for the Group's travel segment plunged by nearly 100% to US$49,000 from US$29,706,000 in the prior year quarter. The segment reported a loss before income tax of US$374,000 for the quarter, as against a profit before income tax of US$2,098,000 a year ago, with the impact of the sharp decline in revenue cushioned by aggressive cost cutting measures and government relief subsidies.

B2. Variation of results against immediate preceding quarter

(Unaudited)

(Unaudited)

Three months ended

Three months ended

30 June 2020

31 March 2020

US$'000

US$'000

% Change

Turnover

24,220

38,457

-37.0%

Loss before income tax

(5,949)

(1,537)

-287.1%

The Group recorded a turnover of US$24,220,000 for the current quarter, 37.0% below that of the immediate preceding quarter, as the pandemic continued to take its toll on the global economy. The turnover for the Group's publishing and printing segment fell by 28.4% to US$24,171,000 from US$33,765,000, while the turnover for its travel segment dropped 99.0% to US$49,000 from US$4,692,000 in the immediate preceding quarter.

As a result of the decline in turnover, the Group's loss before income tax widened to US$5,949,000 from US$1,537,000 in the preceding quarter.

B3. Current year prospects

The year 2020 to date has been a disastrous and very challenging one for most businesses across the globe. With COVID-19 still lingering on and many countries suffering second or third waves of infection with no vaccine in sight, businesses and consumer demands remain weak globally. Hence, the Group expects tough business environment ahead especially for its travel segment as the borders of most countries remain closed.

The Group will continue its efforts to minimise the adverse impact arising from the pandemic on its earnings with aggressive cost containment measures and look for ways to adapt its operations and marketing efforts to the changing business environment. As standard operating procedures and social distancing have become a part of life, the Group will continue to launch more webinars and virtual events, as well as 'hybrid events' which leverage on both its print and digital platforms to drive revenue. Furthermore, to meet the growing demand for digital learning resources as most schools have moved to online classes during the pandemic, the Group's publishing arm has stepped up its efforts and services in order to expand its share in this growing market.

18

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

  1. ADDITIONAL INFORMATION REQUIRED BY BURSA SECURITIES'
    MAIN MARKET LISTING REQUIREMENTS (Continued)

B4. Profit forecast and profit guarantee

The Group has not provided any profit forecast or profit guarantee in any public document.

B5. Profit before income tax

Profit before income tax has been arrived at after (charging) /crediting:

(Unaudited)

Three months ended

30 June

2020

2019

US$'000

US$'000

Exchange gains/(losses) - net

84

(58)

(Provision)/ reversal of provision for loss

allowance and write-off of trade and other

receivables

(132)

134

Provision for impairment and write-off of

inventories

(40)

(40)

Loss on disposal of property, plant and

equipment

(2)

(10)

Save as disclosed above and in A10, the other items as required under Part A(16) of Appendix 9B of the Bursa Securities' Listing Requirements are not applicable.

B6. Income tax expense/(credit)

Income tax expense/(credit) in the condensed consolidated statement of profit or loss represents:

Current period income tax expense Over provision in prior years Deferred income tax credit

(Unaudited)

Three months ended

30 June

2020

2019

US$'000

US$'000

64

1,165

-

(2)

(131)

(54)

(67)

1,109

The effective tax rate of the Group for the current quarter under review was higher than the Malaysian statutory tax rate of 24% mainly due to the loss incurred by the Group during the quarter.

19

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

  1. ADDITIONAL INFORMATION REQUIRED BY BURSA SECURITIES'
    MAIN MARKET LISTING REQUIREMENTS (Continued)

B7. Status of corporate proposal

There were no corporate proposals announced but not completed at the latest practicable date, which is not earlier than seven days from the date of issue of this financial information.

B8. Group borrowings

The Group's borrowings as at 30 June 2020 are as follows:

(Unaudited)

Secured

Unsecured

Total

Current

US$'000

US$'000

US$'000

Bank borrowings

20,127

1,794

21,921

The Group's borrowings were denominated in the following currencies:

(Unaudited)

US$'000

Malaysian Ringgit

1,600

Hong Kong dollars

19,884

United States dollars

437

21,921

The net gearing ratio of the Group, calculated as net debt over owners' equity, was nil as at 30 June 2020 and 31 March 2020.

B9. Material litigation

As at 30 June 2020, there were several libel suits which involved claims against some companies in the Group. The Group has been strongly contesting those claims. Even though the final outcome of the proceedings is still uncertain as of the date this financial information is authorised for issue, the directors of the Company are of the opinion that the respective ultimate liability, if any, will not have a material adverse impact on the Group's financial position.

B10. Dividend payable

The tax-exempt second interim dividend of US0.10 cents per ordinary share totaling US$1,687,000 in respect of the year ended 31 March 2020 was paid on 30 July 2020.

The Board of Directors does not recommend any distribution of dividend for the quarter under review.

20

MEDIA CHINESE INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability) (Malaysia Company No. 200702000044) Financial report for the first quarter ended 30 June 2020

  1. ADDITIONAL INFORMATION REQUIRED BY BURSA SECURITIES'
    MAIN MARKET LISTING REQUIREMENTS (Continued)

B11. (Loss)/earnings per share attributable to owners of the Company

(Unaudited)

Three months ended

30 June

2020

2019

(Loss)/profit attributable to owners of the

Company(US$'000)

(5,682)

2,264

Weighted average number of ordinary shares in issue

1,687,236,241

1,687,236,241

Basic (loss)/earnings per share (US cents)

(0.34)

0.13

Diluted(loss)/earnings per share (US cents)

(0.34)

0.13

The diluted (loss)/earnings per share is the same as the basic (loss)/earnings per share as there were no dilutive potential shares in issue during the quarters ended 30 June 2020 and 2019.

B12. Contingencies

As at 30 June 2020, the Group had short-term bank deposits of US$516,000 (At 31 March 2020: US$516,000) pledged to a bank for a bank guarantee issued.

On behalf of the Board

Media Chinese International Limited

Tin Suk Han

Tong Siew Kheng

Joint Company Secretaries

28 August 2020

21

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Media Chinese International Limited published this content on 28 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 August 2020 09:53:11 UTC