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.
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