TIDMGFHG
RNS Number : 6640X
Grand Fortune High Grade Limited
21 December 2023
GRAND FORTUNE HIGH GRADE LIMITED
CONSOLIDATED REPORTS AND FINANCIAL STATEMENTS
FOR THE PERIODED 31 OCTOBER 2023
GRAND FORTUNE HIGH GRADE LIMITED
CHAIRMAN'S STATEMENT
FOR THE PERIODED 31 OCTOBER 2023
I am pleased to present the consolidated reports and financial
statements for the period from 1 May 2023 to 31 October 2023.
During the period, the Group reported a loss of GBP336,568 (loss of
GBP161,660 for the period from 1 May 2022 to 31 October 2022) which
arose from professional fees, rent, wages and general
administration expenses in connection with the ongoing operations
of the Group. As at 31 October 2023, the Group has approximately
GBP1,092763 of cash balances.
Following its listing on the London Stock Exchange on 22 May
2017, the Group has been focused on the development of its
financial training business in order to satisfy the significant
demand for financial sector specialists in China. To assist in that
development, the Group established a 100% owned subsidiary in Hong
Kong - Grand Fortune High Grade (HK) Limited which in turn has a
100% owned subsidiary in mainland China - Shen Zhen Shi Ji Fu
Education Information Consulting Co. Ltd. (and the consolidated
financial statements presented herein comprise of the financial
statements of Grand Fortune High Grade Limited, Grand Fortune High
Grade (HK) Limited and Shen Zhen Shi Ji Fu Education Information
Consulting Co. Ltd.).
Grand Fortune High Grade Limited held its shareholder meeting on
3 November 2022. All items proposed were approved by 100% of the
votes cast at the meeting. Following the meeting, the Board of
Directors was comprised of Wong Lee Chun (re-elected), Angus Irvine
(re-elected) and Ko Kwan (re-elected).
The past three years have been challenging. The challenges of
the COVID-19 pandemic have had had a devastating effect on the
global economy and on the ability of the Group to offer financial
training courses in person. Despite the Group's best efforts, there
has not been any revenue generated from its financial training
business and the Group has not yet been successful in developing an
online training platform. The implementation and success of the
online training platform remains one of the biggest tests for the
Group.
As the business activities develop, the Group will keep
shareholders advised of its activities. We appreciate the
assistance of our officers, directors and advisors as we work
towards the development of our business.
WONG LEE CHUN
CHIEF EXECUTIVE OFFICER
18 DECEMBER 2023
GRAND FORTUNE HIGH GRADE LIMITED
DIRECTORS' REPORT
FOR THE PERIODED 31 OCTOBER 2023
Directors' report
The directors present their report together with the
consolidated financial statements for the period ended 31 October
2023.
Principal activity and future developments
Grand Fortune High Grade Limited (individually, or collectively
with its subsidiary, Grand Fortune High Grade (HK) Limited ("GFHG
HK") and GFHG HK's wholly owned subsidiary Shen Zhen Shi Ji Fu
Education Information Consulting Co. Ltd. ("Ji Fu Education"), as
applicable, the "Group") is focused on the development, by organic
growth, of its financial training business in order to satisfy the
significant demand for financial sector specialists in China.
Business review and management report
The loss on ordinary activities for the period from 1 May 2023
to 31 October 2023 was of GBP336,568 (loss of GBP161,660 for the
period from 1 May 2022 to 31 October 2022) .
The Group had cash at bank and in hand of GBP1,092,763 at 31
October 2023 . The principal risks and uncertainties that the Group
faces are in developing its financial training business in China,
which is a new market. The Group is aiming to tailor and deliver
courses that are appropriate for the market but there is no
guarantee there will be a sufficient demand for the courses
offered.
The Group has not carried out any activities in the field of
research and development.
Dividends
The directors do not recommend the payment of a final dividend
for the period.
Directors
The following directors served during the period to 31 October
2023:
WONG LEE CHUN - CHAIR AND CHIEF EXECUTIVE OFFICER
ANGUS SIGURD IRVINE - NON-EXECUTIVE DIRECTOR
KO KWAN - NON-EXECUTIVE DIRECTOR
Substantial shareholdings
Except for the interests of those persons set out below, the
Directors are not aware of any interest (other than the interests
of the Directors) which, at the date of this document would amount
to 3% or more of Grand Fortune High Grade Limited's issued share
capital:
Name Number of Ordinary Approximate %
Shares Holding
Kit Ling Law 32,339,084 20.21%
Hundred River Ltd. (Wong
Lee Chun) 31,996,100 19.99%
Directors' Remuneration
Directors' emoluments are detailed in Notes 8 and 10 to the
accounts.
Auditors
A resolution re-appointing Crowe U.K. LLP as auditors of the
Group was approved by shareholders at the annual general meeting
held on 3 November 2022. During the year, the Group received the
resignation of Crowe U.K. LLP as auditors. Following such
resignation, the Group appointed MHA as the auditors of the Group
and will seek the approval of the shareholders for such appointment
at the next annual general meeting of shareholders.
Going concern
The Group is focused on the development, by organic growth, of a
financial training business in China, and, apart from a small
amount of interest receivable, it currently has no significant
income stream. Until the training business has been adequately
developed and is generating significant revenue, it is therefore
dependent on its cash reserves to fund ongoing costs. At 31 October
2023, the Group's cash position was GBP1,092,763.
After reviewing the Group's budget for the period ending 31
October 2024 and its medium-term plans, the directors have a
reasonable expectation that the Group will have adequate resources
to continue in operational existence for the foreseeable
future.
For this reason, they continue to adopt the going concern basis
in preparing the accounts.
Financial risk management
The Group's financial risk management objective is to minimise,
as far as possible, the Group's exposure to such risk as detailed
in note 12 to the accounts.
Principle Risks and Uncertainties Facing the Group
The principal risks and uncertainties facing the Group are: (1)
The Group's success is dependent on the successful development of a
financial training business in China, and for the period ended 31
October 2023, apart from a small amount of interest receivable, the
Group did not generate any revenue and there are no guarantees that
the Group will develop a training business that will generate
sufficient revenue to cover the expenses of the Group; and (2)
Until the training business has been adequately developed and
generating significant revenue, the Group is dependent on its cash
reserves to fund ongoing costs - there are no guarantees that the
Group will be successful in replenishing those cash reserves once
depleted.
COVID-19 Risks
The emergency measures taken within mainland China and Hong Kong
to combat the COVID-19 pandemic may continue, could be expanded,
and could also be reintroduced in the future following relaxation.
As these governments implement monetary and fiscal policy changes
aimed to help stabilize economies and capital markets, we cannot
predict legal and regulatory responses to concerns about the
COVID-19 pandemic and related public health issues and how these
responses may impact our business. The COVID-19 pandemic, actions
taken within mainland China and in Hong Kong in response to it, and
the ensuing economic downturn has caused significant disruption to
business activities and economies. The depth, breadth and duration
of these disruptions remain highly uncertain at this time.
Furthermore, these governments are developing frameworks for the
staged resumption of business activities. As a result, it is
difficult to predict how significant the impact of the COVID-19
pandemic, including any responses to it, will be on the global
economy and our business.
The impact of COVID-19 has significantly reduced the ability of
the Group to currently provide its training programs in a
face-to-face setting and the ability to provide face-to-face
training programs in the future is uncertain. As a result, the
Group is developing an online training platform for its offered
programs. The implementation and success of this online training
platform is uncertain.
Corporate governance
Due to the size and nature of the Group, it has not adopted the
UK Corporate Governance Code. However, it has adopted corporate
governance procedures as are appropriate for the size and nature of
the Group and the size and composition of the Board. These
corporate governance procedures have been selected with due regard
to for the provisions of the UK Corporate Governance Code as far as
is appropriate. A description of these procedures is set out
below:
-- Due to the nature and size of the Group, it does not have
separate audit, remuneration and nomination committees. The Board
as a whole will instead review risk, compliance, and nominations
matters, as well as the Board's size, structure, and composition,
considering the interests of the Shareholders and the performance
of the Group. Once the Group has achieved sufficient growth, the
Board intends to put in place audit, remuneration and nomination
committees;
-- the Board is not subject to the provisions of a formal
governance code and given its present size do not intend to
formally adopt any specific code nor any diversity policy, but will
apply the principles of governance, set out in the UK Corporate
Governance Code, once the Group has achieved sufficient growth;
-- the Corporate Governance Code recommends the submission of
all directors for re-election at annual intervals. One-third of
Directors (or, where their number is not divisible by three, the
nearest number not exceeding one-third) will be required to retire
and seek re-elections on an annual basis; and
-- the Company may seek to transfer from a Standard Listing to
either a Premium Listing or other appropriate listing venue, based
on sufficient growth, subject to fulfilling the relevant
eligibility criteria at the time. If the Group is successful in
obtaining a Premium Listing, further rules will apply to the
Company under the Listing Rules and Disclosure and Transparency
Rules and the Company will be obliged to comply with the Model Code
and to comply or explain any derogation from the UK Corporate
Governance Code.
Directors' responsibility statement
The Directors are responsible for preparing the management
report, annual report (and mid-year report) and the non-statutory
consolidated financial statements in accordance with the Disclosure
and Transparency Rules of the United Kingdom's Financial Conduct
Authority ("DTR") and with International Financial Reporting
Standards ("IFRS") as adopted by the European Union.
International Accounting Standard 1 requires that consolidated
financial statements present fairly for each financial year the
Group's consolidated financial position, consolidated financial
performance and consolidated cash flows. This requires the faithful
representation of transactions, other events and conditions in
accordance with the definitions and recognition criteria for the
assets, liabilities, income and expenses set out in the
International Accounting Standards Board's "Framework for the
Preparation and Presentation of Financial Statements".
In virtually all circumstances, a fair representation will be
achieved by compliance with all IFRS. Directors are also required
to:
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the financial statements;
- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Group will continue
in business;
- select suitable accounting policies and then apply them consistently;
- present information, including accounting policies, in a
manner that provides relevant, reliable, comparable, and
understandable information; and
- provide additional disclosures when compliance with the
specific requirements in IFRS is insufficient to enable users to
understand the impact of particular transactions, other events and
conditions on the Group's consolidated financial position and
financial performance.
The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Group's
transactions and disclose with reasonable accuracy at any time the
financial position of the Group. They are also responsible for
safeguarding the assets of the Group and hence for taking
reasonable steps for the prevention and detection of fraud and
other irregularities.
The maintenance and integrity of the Grand Fortune High Grade
Limited website is the responsibility of the Directors.
Legislation in the Cayman Islands governing the preparation and
dissemination of the accounts and the other information included in
annual reports (and mid year reports) may differ from legislation
in other jurisdictions.
The directors confirm, to the best of their knowledge that:
-- the consolidated financial statements, prepared in accordance
with the relevant financial reporting framework, give a true and
fair view of the consolidated assets, liabilities, financial
position and profit or loss of the Group;
-- the consolidated financial statements include a fair review
of the development and performance of the business and the
consolidated financial position of the Group, together with a
description of the principal risks and uncertainties that it faces;
and
-- the annual report (and mid-year report) and consolidated
financial statements, taken as a whole, are fair, balanced, and
understandable and provide the information necessary for
shareholders to assess the Group's performance, business model and
strategy.
By order of the board
"Wong Lee Chun"
CHIEF EXECUTIVE OFFICER
18 DECEMBER 2023
GRAND FORTUNE HIGH GRADE LIMITED
FOR THE PERIODED 31 OCTOBER 2023
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
1 May 2023 1 May 2022
Note to 31 October to 31 October
2023 2022
GBP GBP
Revenue - 18,395
Administrative expenses 4 (348,888) (180,146)
Operating Loss (348,888) (161,750)
Finance income 12,320 90
Loss before tax (336,568) (161,660)
Taxation 5 - -
Loss after tax and total comprehensive
loss for the period attributable
to the equity holders of the
Group (336,568) (161,660)
Loss per Ordinary Share:
Basic and diluted (pence) 6 (0.21) (0.10)
The notes to the consolidated financial statements form an integral
part of these consolidated financial statements.
GRAND FORTUNE HIGH GRADE LIMITED
FOR THE PERIODED 31 OCTOBER 2023
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At as As at
Note 31 October 31 October
2023 2022
GBP GBP
Assets
Current assets
Cash and cash equivalents 1,092,763 1,595,832
Total assets 1,092,763 1,595,832
Equity and liabilities
Capital and reserves
Share capital 9 4,311,700 4,311,700
Accumulated losses (3,269,182) (2,734,066)
Total equity attributable
to equity holders of the Group 1,042,518 1,577,634
Current liabilities
Amounts owing to Directors 10 9,745 7,698
Other payables 7 40,500 10,500
Total liabilities 50,245 18,198
Total equity and liabilities 1,092,763 1,595,832
The notes to the consolidated financial statements form an
integral part of these consolidated financial statements.
This report was approved by the board and authorised for issue
on 18 December 2023 and signed on its behalf by;
"Wong Lee Chun"
Chief Executive Officer
GRAND FORTUNE HIGH GRADE LIMITED
FOR THE PERIODED 31 OCTOBER 2023
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share
Based
Note Share Payment Accumulated
Capital Reserve Losses Total
GBP GBP GBP GBP
Balance as at 30 April
2021 4,311,700 - (2,290,539) 2,021,161
Loss for the year after
taxation (281,868) (281,868)
Balance as at 30 April
2022 4,311,700 - (2,572,407) 1,739,293
Loss for the period after
taxation (360,212) (360,212)
Balance as at 30 April
2023 4,311,700 - (2,932,619) 1,379,081
Loss for the period after
taxation (336,568) (336,568)
Balance as at 31 October
2023 4,311,700 - (3,269,187) 1,042,513
The share capital comprises the Ordinary Shares of Grand Fortune
High Grade Limited.
Accumulated losses represent the aggregate retained loss of
Grand Fortune High Grade Limited since incorporation.
The notes to the consolidated financial statements form an
integral part of these consolidated financial statements.
GRAND FORTUNE HIGH GRADE LIMITED
FOR THE PERIODED 31 OCTOBER 2023
CONSOLIDATED CASH FLOW STATEMENT
1 May 2023 1 May 2022
to 31 October to 31 October
2023 2022
GBP GBP
Cash flows from operating activities
Loss for the period before taxation (336,568) (161,660)
Adjustments
Bank interest income (12,320) (90)
Foreign currency (gain)/loss (8,323) (34,985)
Operating loss before working capital
adjustments (357,211) (196,735)
Working capital adjustments:
(Decrease)/Increase in other payables - (9,540)
(Decrease)/Increase Amounts due to
Directors 2,853 166
Net cash used in operating activities (354,358) (206,109)
Cash flows from investing activities
Interest received 12,320 90
Net cash flow from investing activities 12,320 90
(Decrease) in cash (342,038) (206,019)
Cash and cash equivalents, beginning
of the period 1,426,479 1,766,865
Effects of currency translation on
cash and cash equivalents 8,323 34,985
Cash and cash equivalents, end of
the period 1,092,763 1,595,832
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. General Information
Grand Fortune High Grade Limited is incorporated under the laws
of the Cayman Islands under the Companies Law. Grand Fortune High
Grade Limited was incorporated on 10 November 2015 as an exempted
company. Grand Fortune High Grade Limited 's registered number is
305700 and its registered office is at Willow House, Cricket
Square, PO Box 709, Grand Cayman KY1-1107, Cayman Islands. The
principal place of business is Flat/Rm 1, 8/F, Metex House, No. 28
Fui Yiu Kok Street, Tsuen Wan, New Territories, Hong Kong.
The Group's objective is to take advantage of opportunities to
establish a financial training business.
This financial information has been prepared in accordance with
IFRS as adopted by the European Union ("EU"). The standards have
been applied consistently during both years presented.
2. Accounting Policies
Basis of preparation
The principal accounting policies adopted by the Group in the
preparation of the financial information are set out below.
The financial information has been presented in pound sterling,
being the functional currency of the Grand Fortune High Grade
Limited.
The financial statements are presented on a consolidated basis
and include the accounts of Grand Fortune High Grade Limited, Grand
Fortune High Grade (HK) Limited and Shen Zhen Shi Ji Fu Education
Information Consulting Co. Ltd.
The financial information has been prepared in accordance with
International Financial Reporting Standards as adopted by the
European Union ("IFRS"), including interpretations made by the
International Financial Reporting Interpretations Committee (IFRIC)
issued by the International Accounting Standards Board (IASB). The
standards have been applied consistently.
2. Accounting Policies (continued)
Standards and interpretations issued but not yet applied
A number of new standards and amendments to standards and
interpretations have been issued but are not yet effective and, in
some cases, have not yet been adopted by the European Union. The
directors do not expect that the adoption of these standards will
have a material impact on the consolidated financial statements of
the Group in future periods.
Going concern
The Group is focused on the development of a financial training
business in China, and apart from a small amount of interest
receivable, it currently has no significant income stream. Until
the training business has been adequately developed and is
generating significant revenue, it is therefore dependent on its
cash reserves to fund ongoing costs. At 31 October 2023, the
Group's cash position was GBP1,092,763.
After reviewing the Group's budget for the period ending 31
October 2024 and its medium-term plans, the directors have a
reasonable expectation that the Group will have adequate resources
to continue in operational existence for the foreseeable future. In
making this assessment, the directors have considered the current
and developing impact on the business as a result of the COVID-19
virus. Whilst this has had an immediate impact on the Group's
operations and the Group's ability to offer financial training
courses in person, the Group is developing an online training
platform for its offered programs. The directors are aware that the
implementation and success of the online training platform remains
one of the biggest tests for the Group, in particular if the
current situation with COVID-19 becomes prolonged and in person
training is not possible or limited.
The financial information does not include any adjustments that
would result if the Group were unable to continue as a going
concern.
Taxation
The tax currently payable is based on the taxable profit for the
year. Taxable profit differs from net profit as reported in the
income statement because it excludes items of income or expense
that are taxable or deductible in other periods and it further
excludes items that are never taxable or deductible. The Group's
liability for current tax is calculated using tax rates that have
been enacted or substantively enacted by the balance sheet
date.
2. Accounting Policies (continued)
Financial instruments
Financial assets and financial liabilities are recognised on the
consolidated statement of financial position when the Group becomes
a party to the contractual provisions of the instrument.
Financial assets
Under IFRS 9, financial assets are measured at amortised cost or
fair value through other comprehensive income ("FVOCI") depending
on the business model and contractual cash flow characteristics.
The classification depends on the basis on which assets are
measured and if either criteria is not met, then the financial
assets are held at fair value through profit or loss ("FVPL").
The Group holds cash and cash equivalents at amortised cost.
As at the consolidated balance sheet date, the Group did not
have any financial assets measured at FVPL or FVOCI.
Financial liabilities and equity instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Group
are classified according to the substance of the contractual
arrangements entered into and the definitions of a financial
liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual
interest in the assets of the Group after deducting all of its
liabilities. Equity instruments are recorded at the proceeds
received, net of direct issue costs.
Financial liabilities
All financial liabilities are measured at amortised cost and are
subsequently measured at amortised cost, where applicable, using
the effective interest method, with interest expense recognised on
an effective yield basis.
2. Accounting Policies (continued)
Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only
when, the Group's obligations are discharged, cancelled or they
expire.
Foreign currencies
Profit and loss account transactions denominated in foreign
currencies are translated into sterling and recorded at the rate of
exchange ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are retranslated at
the rate of exchange ruling at the balance sheet date.
All differences are taken to the profit and loss account.
Cash and cash equivalents
The Group considers any cash on short-term deposits and other
short-term investments to be cash equivalents.
Leases/Rentals
The only leases the Group has entered into are short-term
leases. As permitted by IFRS 16 the Group has taken advantage of
the exemption not to apply the requirements of IFRS 16 to
short-term leases and is recognising the expense in profit and loss
evenly over the lease contract. The total expense incurred on short
term leases is disclosed as rental expenses in note 4 to these
financial statements.
Segment Information
In the Directors' opinion, the Group has only one operating
segment - the development and operation of financial training
courses in China. The internal and external reporting is on a
consolidated basis with transactions between Group companies
eliminated on consolidation. Therefore, the financial information
of the single segment is the same as set out in the consolidated
statement of comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of financial
position and cash flows.
3. Critical accounting estimates and judgement
The preparation of the financial information in conformity with
IFRS requires the Directors to make estimates and assumptions that
affect the reported amounts of income, expenditure, assets, and
liabilities. Estimates and judgements are continually evaluated,
including expectations of future events to ensure these estimates
remain reasonable.
The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the
basis of making the judgements about carrying values of assets and
liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates. There were no
critical estimates during the period ended 31 October 2023.
4. Administrative expenses
1 May 2023 1 May 2022
to 31 October to 31 October
2023 2022
GBP GBP
Directors Remuneration 62,709 45,691
Key Management personnel 4,806 3,136
Rental Expenses 36,428 5,090
Salaries/Wages 80,314 60,597
Office/General Expenses 15,016 10,678
Legal and Professional Fees 155,794 88,139
Bank Charges 2,144 1,799
Foreign currency (gain) /
loss (8,323) (34,985)
348,888 180,145
The remuneration of the auditors for the audit of the annual
financial statements was GBP40,000 (2022: GBP17,500).
5. Taxation
Grand Fortune High Grade Limited is incorporated in the Cayman
Islands. The operations of Grand Fortune High Grade Limited are,
with the exception of regulatory filings, outside of the Cayman
Islands. Accordingly, the costs and revenues of Grand Fortune High
Grade Limited are subject to Cayman Islands taxation legislation
where the prevailing taxation rate is 0%.
As GFHG HK is incorporated in Hong Kong it is subject to Hong
Kong taxation legislation and as Ji Fu Education is incorporated in
China it is subject to China taxation legislation . Any revenue
earned by GFHG HK would be subject to Hong Kong taxation and any
revenue earned by Ji Fu Education would be subject to China
taxation. As the Group's expenses exceeded its revenue for the
period ended 31 October 2023, it has not accrued any tax amount
payable.
6. Loss per Ordinary Share
The calculation for earnings per Ordinary Share (basic and
diluted) for the relevant period is based on the profit after
income tax attributable to equity holder is as follows:
1 May 2023 1 May 2022
to 31 October to 31 October
2023 2022
Loss attributable to equity
holders (GBP) (336,568) (161,660)
Weighted average number of
Ordinary Shares 160,000,000 160,000,000
Earnings per share (pence) (0.21) (0.10)
7. Other payables
As at As at
31 October 2023 31 October 2022
GBP GBP
Accurals 40,500 10,500
40,500 10,500
8. Key management personnel
Zhao Zhijun, the management director of GFHG HK, is considered a
key management personnel and below is the remuneration that was
paid in the periods below.
As at As at
31 October 31 October
2023 2022
GBP GBP
Zhao Zhijun 4,806 3,136
The Directors are also considered the key management personnel
and the following directors' remuneration was accrued in the
periods below.
As at As at
31 October 31 October
2023 2022
GBP GBP
Wong Lee Chun 30,500 18,000
Angus Irvine 21,000 21,000
Ko Kwan 11,209 6,691
62,709 45,691
9. Share capital
As at As at
31 October 31 October
2023 2022
GBP GBP
160,000,000 Ordinary Shares 4,311,700 4,311,700
4,311,700 4,311,700
Grand Fortune High Grade Limited is authorized to issue up to
100,000,000,000 ordinary shares with a par value of GBP0.0001 per
ordinary share.
10. Amounts owing to Directors
As at As at
31 October 31 October
2023 2022
GBP GBP
Directors Fees 9,745 14,198
9,745 14,198
The above Directors fees payable relate to directors'
remuneration between 1 May 2018 and the respective periods listed
above. As of 31 October 2023, the only amounts owing to Directors
are the amounts for fees accrued for October 2023 as all other
outstanding amounts were paid during the period ended 31 October
2023.
11. Financial instruments
As at As at
Financial assets at amortized 31 October 2023 31 October 2022
cost GBP GBP
Other receivables - -
Cash and cash equivalents 1,092,763 1,595,832
Total financial assets 1,092,763 1,595,832
Financial liabilities at amortised
cost
Amounts owing to Directors 9,745 7,698
Other payables 40,500 10,500
Total financial liabilities 50,245 18,198
12. Financial risk management
The Group uses a limited number of financial instruments,
comprising cash and amounts owing to Directors, which arise
directly from operations. The Group does not trade in financial
instruments.
General objectives, policies and processes
The Directors have overall responsibility for the determination
of the Group's risk management objectives and policies. Further
details regarding these policies are set out below:
Currency risk
As the Group operates internationally, its exposure to foreign
exchange risk relates to transactions and balances that are
denominated in currencies other than GBP. The Directors manage the
Group's exposure to currency risk by operating foreign currency
bank accounts, being GBP, HKD, RMB and USD. It is the Directors'
view that the size and complexity of the Group's trade does not
warrant financial hedging arrangements currently, although this
view will be regularly reviewed as the Group develops.
The table below illustrates the hypothetical sensitivity of the
Group's consolidated statement of financial position to a 10%
increase and decrease in the GBP/HKD, GBP/USD and GBP/RMB exchange
rates at the year-end date. The sensitivity rate of 10% represents
the directors' assessment of a reasonably possible change, based on
historic volatility.
12. Financial risk management (continued)
Period Ended Period Ended
31 October 31 October
2023 2022
GBP GBP
------------------------------------------------- -------------------- --------------------
GBP Increases by 10%
HKD portion of Cash and cash equivalents (12,229) (26,966)
USD portion of Cash and cash equivalents (2,136) (6,645)
RMB portion of Cash and cash equivalents (4,356) (4,601)
------------------------------------------------- -------------------- --------------------
GBP Decreases by 10%
HKD portion of Cash and cash equivalents 14,946 32,958
USD portion of Cash and cash equivalents 2,611 8,121
RMB portion of Cash and cash equivalents 5,325 5,623
Period end exchange rates applied in the above analysis are HKD
9.49051 (2022 - HKD 9.1118, USD 1.21349 (2022 - USD 1.16083) and
RMB 8.86093 (2022 - RMB 8.41247).
Credit risk
Credit risk is the risk that a counter party will not meet its
obligations under a contract, leading to a financial loss. The
Group had cash and cash equivalents of GBP1,092,763 as at 31
October 2023. The credit risk from its liquid funds is limited as
the counter parties are banks with high credit ratings.
Liquidity risk
Liquidity risk arises from the Directors' management of working
capital. It is the risk that the Group will encounter difficulty in
meeting its financial obligations as they fall due.
The Directors' policy is to ensure that the Group will always
have sufficient cash to allow it to meet its liabilities when they
become due. To achieve this aim, the Directors seek to maintain a
cash balance sufficient to meet expected requirements (all amounts
due within 30 days).
The Directors have prepared cash flow projections on a monthly
basis through to 31 October 2024. At the end of the period under
review, these projections indicated that the Group expected to have
sufficient liquid resources to meet its obligations under all
reasonably expected circumstances.
13. Capital risk management
-
The Directors' objectives when managing capital are to safeguard
the Group's ability to continue as a going concern in order to
provide returns for Shareholders and benefits for other
stakeholders and to maintain an optimal capital structure to reduce
the cost of capital. Historically, the Group had been financed by
equity and Directors' loans. In the future, the capital structure
of the Group is expected to consist of equity attributable to
equity holders of the Group, comprising issued share capital and
reserves.
14. Related party transactions
During the year ended 30 April 2020, Grand Fortune High Grade
Limited entered into an employment agreement with Derek Law. Derek
Law is a related party by virtue of being the brother of Kit Ling
Law (a significant shareholder and former member of the Board of
Directors of Grand Fortune High Grade Limited). Under the terms of
the employment agreement, Derek Law was employed on a continuous
basis as an Executive Deputy Director of Grand Fortune High Grade
Limited effective 1 December 2019 and entitled to a monthly salary
of HKD 20,000 and a monthly housing allowance of HKD 5,000. The
total amount of entitlement increased to HKD 40,000 per month on
May 1, 2023.
At the same time as the resignation of Anthony Wonnacott (1
October 2021) from the board of directors of the Company, Grand
Fortune High Grade Limited entered into a consulting agreement with
Wonnacott Consulting Professional Corporation (an entity controlled
by Anthony Wonnacott) pursuant to which Mr. Wonnacott was engaged
as a corporate advisor to the Company with remuneration of GBP2,500
per month (total charged by Mr. Wonnacott of GBP15,000 during the
period ended 31 October 2022). Mr. Wonnacott is a related party by
virtue of being a former director of the Company.
Additionally, on 1 June 2023, Grand Fortune High Grade Limited
entered into a consulting agreement with Kit Ling Law pursuant to
which Ms. Law was engaged as a consultant to the Company with
remuneration of HKD 40,000 per month (total charged by Ms. Law of
HKD 200,00 during the period ended 31 October 2023). Ms. Law is a
related party by virtue of being a significant shareholder as well
as a former director of the Company.
All other amounts owing to directors relate to directors'
remuneration accrued between May 2018 and the period ended 31
October 2023, see note 8 and 10 for a summary.
15. Ultimate controlling party
As at 31 October 2023, the Group did not have any one
identifiable controlling party.
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END
IR BXBDDUDDDGXB
(END) Dow Jones Newswires
December 21, 2023 08:27 ET (13:27 GMT)
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