Grand Group Investment

GIPO: 5.00 0.01 (▲0.10%)

Delayed:2017-07-28 14:00:24
Bid Price 4.75 High Price 5.00
Ask Price 5.00 Low Price 5.00
Open Price 4.88 Spread 5.13%
Prev Close 4.88 Volume 1,000.00

Grand Group Investment Share Price Chart

Intraday

Historic - 1 year


Grand Group Investment Share Price Information

Name Grand Group Investment Epic GIPO
Sector Financial Services ISIN KYG405631014
Activites Grand Group Investment plc was founded in 2014. The Company has been established for the purpose of identifying, acquiring and investing in small to medium-sized companies with high growth potential, principally operating in the People's Republic of China. Grand is a late stage incubator fund which focusses on investing in established businesses with technology or intellectual property which the Board believes will benefit from access to university research resources. Grand acquired a 33 per cent. stake in Wuxi Victory Media and Culture Co. Ltd. (Victory) for RMB 196 million. Grand holds this interest indirectly through a Variable Interest Entity (VIE) series of contracts. Victory produces training courses, training software, and training videos for basic blue collar jobs, primarily in the metal working sector in China. The market for these training and education videos is large in China, covering unskilled labour migrating from the countryside to urban areas. In its year ended 31 December 2013, the Victory group made profits after tax of RMB 55.8 million on revenues of RMB 102.2 million. Security Type Equity

Key numbers

Latest Share Price (p) 4.88 Net Gearing (%) -39.36
Market Cap (£m) 1.66 Gross Gearing (%) 5.20
Shares in issue (m) 33.95 Debt Ratio 0.00
P/E Ratio 12.20 Debt-to-Equity Ratio 0.00
Divs per share (p) 0.00 Assets / Equity Ratio 1.06
Dividend Yield (%) 0.00 Price to book value 0.01
Dividend Cover 0.00 SROCE (%) 6.11
Earning per share (p) 0.40 EPS Growth (%) 106.83
52-week high / low (p) 57.50 / 4.50 DPS Growth (%)

Grand Group Investment Broker Views

Date Broker Rec. Price Old target price New target price Notes

Grand Group Investment Director Deals


Grand Group Investment Company News

Grand Group Investment swings into profit

Grand Group Investment has reported a profit after tax of RMB 13.7m for the year to 31 December 2016, compared to a loss of RMB 195.3m for 2015.

The Company's diluted earnings per share was RMB 0.39.

Non-executive Chairman, James Newman, issued the following statement:

2016 was an eventful and challenging year. I refer you to the announcement of 30 September 2016 for a detailed explanation of the events leading to the delay in issuing both the 2015 audited financials and the 2016 interim statements.

As notified on 30 September 2016, the company disposed of its two investments: Victory and JXT. These disposals triggered paragraph 5.6 (sub-paragraph 2) of the AIM Note for Investing Companies, and as such the company became treated as an AIM Rule 15 cash shell. In accordance with AIM Rule 15, the company has until 30 September 2017, approximately 3 months from now, either to implement the current investing policy or to make an acquisition which would be considered a reverse takeover under the AIM Rules. If the company is unable to do so it will be suspended again, this time pursuant to AIM Rule 40.

The company started 2017 with a virtually clean slate, having sold its investments. As of 2016 year end, proceeds from the sales of Victory and JXT investments have been coming in on time, and cash had grown to RMB 140.8 million. As of the end of April, funds continued to arrive on time and total (unaudited) cash was RMB 221.2 million - approximately £25 million. No new investments have yet been made with the proceeds.

The group has much to do in 2017 - notably finishing collecting the proceeds from the investment exits, but as importantly developing the pipeline of investment opportunities and investing by the September 30 deadline.

Outlook

As the US Federal Reserve continues to look to raise interest rates, there has been a significant impact on the Chinese investment market, causing many asset prices to return to more rational levels. This provides a great opportunity for Grand. The sales of Victory and JXT have bolstered Grand's cash reserves for future investments. Now that Grand has regained listed status on AIM, it is in a better position to make those investments.




At 2:04pm: (LON:GIPO) Grand Group Investment Plc share price was 0p at 14.25p



Story provided by StockMarketWire.com

Grand Group shares resume trading on AIM

Trading in Grand Group Investment's shares on AIM has resumed after the company published its annual report and accounts and half yearly report.


At 8:00am: (LON:GIPO) Grand Group Investment Plc Ord 0.00004 Di share price was -1.5p at 55p



Story provided by StockMarketWire.com

Grand Group schedules AGM

Grand Group Investment will hold its annual general meeting on 26 January at its offices at No.23, Huize Road, Wuxi, Jiangsu Province, China, at 17:00 Beijing time.




Story provided by StockMarketWire.com

Grand Group in the red

Grand Group Investment posts a pre-tax loss of RMB259,483,000 for the year to the end of December 2015 against a profit of RMB275,975,00 for the period from 4 March to the end of December 2014.

The group - a provider of expansion capital and value added services to China-based SMEs with high growth potential - joined AIM market on 27 January 2015 raising gross proceeds of £7.1 million.

In April Grand made a new investment of RMB 20 million in Wuxi Jinxuntong Technology Limited for a 15% stake in the company.

JXT is an online learning solutions provider to China's urban and rural vocational education industry whose business is complementary with that of Victory.

Then in November Grand received a cash dividend of RMB 19.8 million from its investee company Victory Education Investment Limited .

The company said: "Both JXT and Victory appeared to make good progress during 2015 (and 2016 for that matter). However, during the 2015 audit our auditors were unable to get comfortable with a very large prepayment asset on the books of both Victory and JXT.

"These prepayments, as far as we can tell, were legitimate, but the size - RMB 330 million and RMB220 million respectively - so dominated the balance sheets that it was felt the only way to get comfortable was a degree of transparency which would be unusual from an invested company in which Grand did not hold a controlling stake.

"This issue derailed the issuance of the annual report to such an extent that the company's shares were suspended on 29 June 2016 and threatened to lead to delisting. The board determined that that risk to shareholders was unacceptable. The most likely way to resolve the issue before the delisting deadline was to sell both JXT and Victory.

"These sales were accomplished and announced on 30 September 2016. Both were sold at prices significantly higher than purchase price.

"JXT was purchased for RMB 20 million in April 2015 and sold for RMB 30 million, representing a 50% return (33% per annum) on its purchase price.

"Victory was purchased for RMB 196 million in April 2014 and sold for RMB 235.2 million, representing a return of 20%, or approximately 8% per annum. In addition, though, Victory had already paid Grand a dividend of RMB 20 million in late 2015, so the total return was closer to 11.5% p.a.

"JXT was carried on the books at the purchase price, so we will be able to recognise a gain on that sale in 2016. However, Victory was revalued upward in the fiscal year 2014 statements before the prepayments issue had come to light. Since Grand sold the holding before the 2015 statements were issued, the value for 2015 has been written down to the actual sales price, leading to a loss after tax of RMB 195.3 million in fiscal year 2015.

"Although this process has been very difficult, there is a silver lining: as of year end 2015 Grand's Net Asset Value is RMB 285.9 million, well over £30 million at the current exchange rate, well above the value at listing, and that is an extremely well-supported number after some very deep digging by our auditors. As of writing, the cash for those sales has been coming in on time, so we have significant and growing cash for further investments in 2017."








Story provided by StockMarketWire.com