SMI Culture & Travel : Announcements and Notices - 2018 Final Results Announcement

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SMI Culture & Travel Group Holdings Limited

星美文化旅遊集團控股有限公司

(Incorporated in the Cayman Islands and continued in Bermuda with limited liability)

(Stock code: 2366)

2018 FINAL RESULTS ANNOUNCEMENT

FINANCIAL HIGHLIGHTS

•Revenue decreased by 52% to approximately HK$65.3 million (2017: approximately HK$134.9 million)

•Gross profit decreased by 181% to approximately HK$-45.4 million (2017: approximately HK$55.9 million)

•Loss for the year is approximately HK$497.3 million (2017: Loss for the year was approximately HK$133.9 million)

•Basic loss per share in 2018 is 37.79 HK cents and basic loss per share in 2017 was 14.29 HK cents

The board (the "Board") of directors (the "Directors") of SMI Culture & Travel Group Holdings Limited (the "Company") announces the consolidated financial results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2018.

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME

For the year ended 31 December 2018

		2018		2017
	Notes	HK$'000		HK$'000
Revenue	3	65,274		134,948
Cost of sales		(110,691)		(79,085)
Gross (loss)/profit		(45,417)		55,863
Other revenue		10		79
Other expenses		(9,619)		(8,150)
Provision for impairment losses (recognized)/
reversed in respect of:
- goodwill	10	(95,721)		(11,885)
- intangible assets	11	(13,268)		(9,318)
- other receivables	14	4,479		(52,472)
- film rights investments	13	(159,021)		(6,490)
- trade receivables	14	(42,668)		-
- amount due from a shareholder		1,493		-
- amount due from a related party		344		-
Fair value change of the embedded derivatives		14,585		28,989
Provision for inventories	12	-		(9,819)
Selling expenses		(5,638)		(41)
Administrative expenses		(23,660)		(34,583)
Finance costs	4	(122,364)		(71,650)
Loss before income tax expense		(496,465)		(119,477)
Income tax expense	5	(870)		(14,437)
Loss for the year	6	(497,335)		(133,914)

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Loss for the year attributable to:

Owners of the Company

Non-controlling interests

Loss per share

-Basic (Hong Kong cents)

-Diluted (Hong Kong cents)

Loss for the year

Other comprehensive (expense)/income, net of tax

Items that may be reclassified subsequently to profit or loss:

Exchange differences on translation of foreign operations

Other comprehensive (expense)/income for the year

Total comprehensive expense for the year

Total comprehensive expense attributable to:

Owners of the Company

Non-controlling interests

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	2018		2017
Notes	HK$'000		HK$'000
	(497,333)		(133,063)
	(2)		(851)
	(497,335)		(133,914)
	HK cents		HK cents
8
	(37.79)		(14.29)
	N/A		N/A
	(497,335)		(133,914)

(5,917) 29,840

(5,917) 29,840

(503,252) (104,074)

(503,250)		(103,223)
(2)		(851)
(503,252)		(104,074)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2018

		2018	2017
	Notes	HK$'000		HK$'000
Non-current assets
Property, plant and equipment		837	2,387
Goodwill	9	-	95,721
Intangible assets	11	88,113	115,223
		88,950	213,331
Current assets
Inventories	12	185,909	185,926
Film rights investments	13	561,540	810,617
Trade and other receivables	14	331,747	323,327
Amount due from a shareholder		56,289	91,918
Amounts due from a related party		27,836	35,746
Cash and cash equivalents		1,717	6,128
		1,165,038	1,453,662
Current liabilities
Trade and other payables	15	236,520	124,080
Amounts due to directors		2,208	943
Amounts due to fellow subsidiaries		19,350	13,320
Tax provisions		162,175	156,952
Loan notes		450,000	448,725
Convertible loan notes		110,000	108,813
Embedded derivatives		-	14,585
		980,253	867,418

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	2018		2017
Notes	HK$'000		HK$'000
Net current assets	184,785		586,244
Total assets less current liabilities	273,735		799,575
Non-current liabilities
Debenture	2,798		-
Deferred tax liabilities	9,300		13,671
	12,098		13,671
Net assets	261,637		785,904
Capital and reserves
Share capital	13,160		13,160
Other reserves	250,146		774,411
Equity attributable to owners of the Company	263,306		787,571
Non-controlling interests	(1,669)		(1,667)
Total equity	261,637		785,904

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