RNS Number:2255D
Sun 3C Media PLC
04 September 2007
4 September 2007
Sun 3C Media Plc
Directors Report and Financial Statements
For the Year Ended 31 December 2006
and resumption of trading on AIM
London, Beijing, 4 September 2007: Sun 3C Media Plc ("Sun 3C", or "Company") the
Chinese mobile media company listed on AIM (AIM: SCCC), is pleased to announce
its results for the year ended 31 December 2006. In accordance with the AIM
Rules, trading in Sun3C shares will re-commence with immediate effect.
Highlights:
*2006 reflects a year of integrating and consolidating assets, managing
the admission of the company to trading on the AIM market, and laying the
foundation for our future growth through the acquisition of Upstart Games
and the building up of a mobile media and services based business in China.
*Strategic focus was shifted from TV shopping to mobile media and services
in anticipation of further growth in China's enormous mobile services
industry.
*Decision to dispose of further non core assets.
2006 Consolidated Financials:
*Revenue increased 100% on 2005 to EUR 169,545 from sales of games
software for mobile phones in the United States, Europe and Japan.
*Gross Profit EUR 113,015
*Net loss EUR 12.8m against a 2005 net loss of EUR 1,900 due to write-off
of intangible assets related to TV shopping reflecting the change in the
Company's business direction
*Loss per share (basic and diluted) was EUR 0.06
Post Balance Sheet Events:
*Acquisition of the rights to 21CN Business News Agency on 27 Feb 2007.
*Change of Directors over 2007 to better reflect the ongoing business of
the company.9% Investment in Fifty Lessons on 26 April 2007.
*Disposal of non-core assets.
*Completion of the acquisition of 80% interest in the companies holding
the sales, marketing, and distribution rights to the China Business Post on
4 September 2007.
*Completion of the acquisition of CEC Unet Plc on 4 September 2007.
*Placing of 22,555,932 ordinary shares at STG 11.8p on 15 May 2007.
Mr. Chen Zhaobin Chairman of Sun 3C said, "Sun 3C is a young company that has
passed a number of early and very critical tests over the first year of its
birth. The management believes that the company has emerged stronger and more
focused, with the right mix of assets and management resources to capitalise on
a historic opportunity in China's mobile services industry."
The full published accounts for the year ended 31 December 2006 have been sent
to shareholders, are on the Company's web site, www.sun3cmedia.com, and can be
obtained from the Registered Office.
CHAIRMAN'S REPORT
for the year ended 31 December 2006
2006 was a milestone year for Sun 3C Media, Plc. In the face of a challenging,
shifting marketplace in China, we were able to successfully transition from an
Internet-focused TV Shopping company into one of China's best positioned mobile
media and third party payment companies. Although I did not actually join the
company until January of 2007, I am honoured to have the opportunity to update
you here on the progress the company has made and outline our plans going
forward.
Our financial results in 2006 reflect the type of year it was for the company.
We were focused on integrating and consolidating assets, managing the admission
of the company to trading on the AIM market, and laying the foundation for our
future growth through the acquisition of Upstart Games and the building up of a
mobile media and services based business in China. The end of 2006 saw us well
positioned to execute a number of critical deals in 2007 that will solidify the
company's position in China, including the planned acquisition of the sales,
marketing and distribution rights for The China Business Post, and, most
importantly, our recently announced plan to acquire CEC Unet Plc, a leading
mobile top-up and electronic payment company that will give us an immediate
customer base of over 5 million mobile consumers in China and a network of more
than 18,000 sales agents.
The results for 2006 also reflect a number of painful but ultimately beneficial
strategic decisions that we had to make towards the end of that year. In the
face of a number of strict new regulations governing IPTV and TV shopping in
China and the entrance of a handful of very well financed companies into the
space, we made a decision to shift our strategic focus from TV shopping to
mobile media and services. We did so in anticipation of further growth in China
's enormous mobile services industry and in response to a series of regulatory
changes that shifted the balance of power in the mobile content marketplace to
companies with established brands and audiences. After a careful examination of
the opportunity, the management felt that the rich content resources we acquired
at the time of the company's listing in July would be best suited in the
long-term for distribution through mobile.
At the same time certain other assets acquired at the time of admission are less
valuable to us in the near term. Notably, the various product distribution
rights we acquired for jewellery and other products that were to be distributed
through our TV shopping platform have less immediate opportunity to be monetised
in the still nascent world of mobile commerce. Our largest shareholders, Sun
Media Investment Holdings and Sun Media Investment International Limited, both
owned by Dr. Bruno Wu, have agreed to re-purchase these assets from the company
by re-assigning the shares they received at time of listing to satisfy the
company's obligations to issues shares for the purchase of the China Business
Post and CEC Unet Plc. This deal will insure that the company has the right mix
of assets going forward, allow us to avoid an impairment charge for the non-core
intangible assets, and allow us to avoid further dilution through the
acquisitions of CEC Unet Plc and China Business Post.
The exclusive use rights to the 34,000-plus kilometre fibre network that we
acquired at the time of admission are also in many ways no longer directly
relevant to our mobile-centric business model. One of our key priorities this
year will be to spin-off and/or seek acquirers for these non-core assets as we
continue to hone our organizational and strategic focus on the immense
opportunities in the mobile space.
Going forward, our efforts will be focused on two related, but separate areas in
China's mobile industry: content & services on one side, and distribution &
payment on the other. On the content side, we are leveraging the various
technical and content assets we acquired through Upstart Games to build what we
believe will be one of the most innovative mobile services to be introduced into
the China market this year. We are also continuing to consolidate our strengths
in the areas of branded content assets, most notably through the acquisition of
the sales, marketing, and distribution rights to the China Business Post, a
leading financial newspaper based out of Beijing.
On the payment side, we are looking forward to closing the CEC Unet Plc deal and
then moving aggressively to expand the business in terms of both its geographic
reach and the types of payments we process through the platform we will acquire.
Sun 3C is a young company that has passed in the last year though a number of
early and very critical tests. The management believes that the company has
emerged stronger and more focused, with the right mix of assets and management
resources to capitalise on an historic opportunity in China's mobile services
industry.
Mr Zhaobin Chen
Chairman
Sun3C Media Plc
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 December 2006
Year ended Year ended
31 December 31 December
2006 2005
Euro Euro
Turnover
- continuing operations - -
- acquisitions 169,545 -
169,545 -
Cost of sales (56,530) -
Gross profit 113,015 -
Administrative expenses (1,877,931) (1,895)
Amortisation of intangible fixed (6,626,690) -
assets
Impairment of intangible fixed (1,971,007)
assets
Share based payments charge (2,498,551) -
Operating loss
- continuing operations (3,840,394) (1,895)
- acquisitions (9,020,770) -
(12,861,164) (1,895)
Other interest receivable and 60,653 -
similar income
Interest payable and similar (329) (15)
charges
Loss on ordinary activities (12,800,840) (1,910)
before taxation
Tax on loss on ordinary - -
activities
Loss for the period (12,800,840) (1,910)
Loss per share - basic and (0.06) -
diluted
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the year ended 31 December 2006
Year ended Year ended
31 December 31 December
2006 2005
Euro Euro
Loss for the financial year (12,800,840) (1,910)
Currency translation differences (7,325) -
on foreign currency net
investments
Total recognised gains and (12,808,165) (1,910)
losses relating to the year
CONSOLIDATED BALANCE SHEET
As at 31 December 2006
31 December 31 December
2006 2005
Euro Euro
Fixed assets
Intangible assets 75,381,199 -
Tangible assets 59,730 -
Investments 60,673 -
75,501,602 -
Current assets
Debtors 680,906 -
Cash at bank and in hand 2,737,299 269
3,418,205 269
Creditors: amounts falling (3,263,717) (11,869)
due within one year
Net current assets / 154,488 (11,600)
(liabilities)
Total assets less current 75,656,090 (11,600)
liabilities
Creditors: amounts falling (84,289) -
due after one year
75,571,801 (11,600)
Capital and reserves
Called up share capital 4,600,678 535,009
Share premium account 82,115,278 287,932
Share based payments reserve 2,498,551 -
Other reserves 8,448 8,448
Profit and loss account (13,651,154) (842,989)
Shareholders' funds/ 75,571,801 (11,600)
(deficit):
Equity interests 74,821,801 (11,600)
Non equity interests 750,000 -
Total shareholders' funds/ 75,571,801 (11,600)
(deficit)
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2006
+-----------------------------------------+--+------------+--+------------+
| | | 31 December| | 31 December|
| | | 2006| | 2005|
| | | | | |
+-----------------------------------------+--+------------+--+------------+
| | | Euro| | Euro|
+-----------------------------------------+--+------------+--+------------+
| | | | | |
+-----------------------------------------+--+------------+--+------------+
|Net cash (outflow)/inflow from operating | |(1,508,152) | |284 |
|activities | | | | |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
+-----------------------------------------+--+------------+--+------------+
|Returns on investments & servicing of | | | | |
|finance | | | | |
+-----------------------------------------+--+------------+--+------------+
|Interest received | |60,653 | |- |
+-----------------------------------------+--+------------+--+------------+
|Interest paid | |(329) | |(15) |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
| | | | | |
+-----------------------------------------+--+------------+--+------------+
|Net cash inflow/(outflow) for returns on | |60,324 | |(15) |
|investments and servicing of finance | | | | |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
+-----------------------------------------+--+------------+--+------------+
|Capital expenditure | | | | |
+-----------------------------------------+--+------------+--+------------+
|Purchase of tangible fixed assets | |(4,224) | |- |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
+-----------------------------------------+--+------------+--+------------+
|Acquisitions | | | | |
+-----------------------------------------+--+------------+--+------------+
|Purchase of subsidiary undertaking | |(745,585) | |- |
+-----------------------------------------+--+------------+--+------------+
|Net overdrafts acquired with subsidiary | |(450,142) | |- |
+-----------------------------------------+--+------------+--+------------+
|Purchase of listed shares | |(60,673) | |- |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
| | | | | |
+-----------------------------------------+--+------------+--+------------+
|Net cash outflow from acquisitions | |(1,256,400) | | |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
| | | | | |
+-----------------------------------------+--+------------+--+------------+
|Net cash outflow before financing | |(2,708,452) | |- |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
+-----------------------------------------+--+------------+--+------------+
|Financing | | | | |
+-----------------------------------------+--+------------+--+------------+
|Issue of ordinary share capital (net of | |5,385,607 | |- |
|expenses) | | | | |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
| | | | | |
+-----------------------------------------+--+------------+--+------------+
|Net cash inflow from financing | |5,385,607 | |- |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
| | | | | |
+-----------------------------------------+--+------------+--+------------+
|Increase in cash in the period | |2,677,155 | |269 |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
| | | | | |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
+-----------------------------------------+--+------------+--+------------+
|Reconciliation of net cash flow to | | | | |
|movement in net funds | | | | |
+-----------------------------------------+--+------------+--+------------+
|Increase in cash in the period | |2,677,155 | |269 |
+-----------------------------------------+--+------------+--+------------+
|Finance leases acquired with subsidiary | |(211,664) | |- |
+-----------------------------------------+--+------------+--+------------+
|Translation difference | |(7,325) | |- |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
| | | | | |
+-----------------------------------------+--+------------+--+------------+
|Movement in net funds in the period | |2,458,166 | |269 |
+-----------------------------------------+--+------------+--+------------+
|Net funds at 1 January | |269 | |- |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
| | | | | |
+-----------------------------------------+--+------------+--+------------+
|Net funds at 31 December | |2,458,435 | |269 |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
| | | | | |
+-----------------------------------------+--+------------+--+------------+
| | | | | |
+-----------------------------------------+--+------------+--+------------+
Notes
1. Turnover and Segmental Analysis
The geographical analysis of turnover by destination is:
+---+----------------------------------------+------------+--+-------------+
| | | 31 December| | 31 December|
| | | 2006| | |
| | | | | 2005|
+---+----------------------------------------+------------+--+-------------+
| | | Euro| | Euro|
+---+----------------------------------------+------------+--+-------------+
| | | | | |
+---+----------------------------------------+------------+--+-------------+
| |United States |153,114 | |- |
+---+----------------------------------------+------------+--+-------------+
| |Europe |12,415 | |- |
+---+----------------------------------------+------------+--+-------------+
| |Japan |4,016 | |- |
+---+----------------------------------------+------------+--+-------------+
| | | | | |
| | | | | |
+---+----------------------------------------+------------+--+-------------+
| | |169,545 | |- |
+---+----------------------------------------+------------+--+-------------+
| | | | | |
| | | | | |
+---+----------------------------------------+------------+--+-------------+
Sales by product wholly relate to the sale of games software for mobile phones.
Analysis of the Group's results by area of supply is:
+--+-----------+----------------------------------+--------------------------------+
| | | 31 December 2006 | 31 December 2005 |
+--+-----------+----------+------------+----------+----------+----------+----------+
| | | Turnover| Loss on|Net assets| Turnover| Loss on|Net assets|
| | | | ordinary| at year| | ordinary| at year|
| | | | activities| end| |activities| end|
| | | | before| | | before| |
| | | | taxation| | | taxation| |
+--+-----------+----------+------------+----------+----------+----------+----------+
| | | Euro| Euro| Euro| Euro| Euro| Euro|
+--+-----------+----------+------------+----------+----------+----------+----------+
| | | | | | | | |
+--+-----------+----------+------------+----------+----------+----------+----------+
| |People's |- |(144,591) |146,318 |- |(1,910) |(11,600) |
| |Republic of| | | | | | |
| |China | | | | | | |
+--+-----------+----------+------------+----------+----------+----------+----------+
| |Japan |4,016 |(159,416) |(916,496) |- |- |- |
+--+-----------+----------+------------+----------+----------+----------+----------+
| |Ireland |165,529 |(199,223) |(133,764) |- |- |- |
+--+-----------+----------+------------+----------+----------+----------+----------+
| |British |- |(12,297,610)|76,475,743| | | |
| |Virgin | | | | | | |
| |Islands | | | | | | |
+--+-----------+----------+------------+----------+----------+----------+----------+
| | | | | | | | |
| | | | | | | | |
+--+-----------+----------+------------+----------+----------+----------+----------+
| | |169,545 |(12,800,840)|75,571,801|- |(1,910) |(11,600) |
+--+-----------+----------+------------+----------+----------+----------+----------+
| | | | | | | | |
| | | | | | | | |
+--+-----------+----------+------------+----------+----------+----------+----------+
2. Operating loss
+---+----------------------------------------+------------+---+------------+
| | | 31 December| | 31 December|
| | | 2006| | |
| | | | | 2005|
+---+----------------------------------------+------------+---+------------+
| | | Euro| | Euro|
+---+----------------------------------------+------------+---+------------+
| |Operating loss is stated after charging:| | | |
+---+----------------------------------------+------------+---+------------+
| |Impairment of intangible assets |1,971,007 | |- |
+---+----------------------------------------+------------+---+------------+
| |Amortisation of intangible assets |6,626,690 | |- |
+---+----------------------------------------+------------+---+------------+
| |Depreciation of tangible assets |3,285 | |- |
+---+----------------------------------------+------------+---+------------+
| |Auditors' remuneration - audit services |75,000 | |605 |
+---+----------------------------------------+------------+---+------------+
| |Share based payments charge |2,498,551 | |- |
+---+----------------------------------------+------------+---+------------+
| | | | | |
| | | | | |
+---+----------------------------------------+------------+---+------------+
3. Loss per share
+---+----------------------------------------+------------+--+-------------+
| | | 31 December| | 31 December|
| | | 2006| | |
| | | | | 2005|
+---+----------------------------------------+------------+--+-------------+
| | | Euro| | Euro|
+---+----------------------------------------+------------+--+-------------+
| |Basic | | | |
+---+----------------------------------------+------------+--+-------------+
| |Loss attributable to ordinary |(12,800,840)| |(1,910) |
| |shareholders | | | |
+---+----------------------------------------+------------+--+-------------+
| |Weighted average number of shares |208,454,868 | |53,500,875 |
+---+----------------------------------------+------------+--+-------------+
| | | | | |
| | | | | |
+---+----------------------------------------+------------+--+-------------+
| |Basic loss per share |(0.06) | |- |
+---+----------------------------------------+------------+--+-------------+
| | | | | |
| | | | | |
+---+----------------------------------------+------------+--+-------------+
| | | | | |
+---+----------------------------------------+------------+--+-------------+
There was no dilutive effect from the share options outstanding during the year.
4. Intangible fixed assets
On July 6, 2006, Sun 3C Media Plc acquired 100% of the share capital of Sun TV
Shop Limited, a company controlled by Dr. Bruno Wu. Sun TV Shop Limited owned
the following intangible assets at the time it was acquired:
* Network Use Rights: The exclusive use rights to a 34,000km fibre-optic
network in the People's Republic of China
* Media Rights: The online rights to various magazine publications,
including Wine & Dine
* Television Rights: The ownership of the 2005 catalogue of the Chinese
television shows C'est La Vie and 66 Places of a Lifetime, and the 2005
catalogue and 5 year ongoing rights to Yang Lan One-on-One
* Product Distribution Rights: A contract to distribute various products,
namely jewellery, in the People's Republic of China through online and TV
shopping channels.
On July 24, 2007, the company entered into a binding heads of agreement with
it's largest shareholders Sun Media Investment Holdings, Ltd ("SMIH") and Sun
Media Investment International Ltd ("SMII") to assign the rights to a number of
these intangible assets acquired at listing back to SMIH and SMII as they were
deemed to no longer be relevant to the company's core business model. The assets
affected included the exclusive jewellery distribution contract, the rights to
the online versions of Lifestyle magazines, and the rights to the electronic
edition of Wine & Dine ("the assigned rights").
The consideration for the assignment of the Agreements relating to the above
rights is the waiver by SMIH and SMII of their rights to 96,913,946 shares
currently held in Escrow ("the Escrow Shares") and their irrevocable instruction
to the Escrow Agent to transfer the Escrow Shares (as defined below).
The terms of the Escrow Agreement shall be varied and the Escrow Agent shall be
irrevocably instructed to transfer the Escrow Shares as follows (or as otherwise
directed by Sun 3C):
(i) 19,558,000 Ordinary Shares to be transferred to Panpac Tech Strategic
Limited as consideration for completion of that planned transaction pursuant to
the terms of a share sale and purchase agreement dated 1 December 2006 as
amended by a supplemental agreement dated July 31, 2007 (together, the "CBP
Agreement") between (1) Sun 3C (2) The Lexicon Group Limited (formerly Sun
Business Network Limited) (3) The Observer Star Global Publishing Holdings Ltd
and (4) Sun Media Investment Holdings Limited as the Purchaser 2 Consideration
Shares (as defined in the CBP Agreement) for the acquisition of an 80 per cent
interest in the companies holding the sales, marketing and distribution rights
to the China Business Post ("CBP Rights"); and
(ii) 77,355,946 Ordinary Shares to be transferred to CEC Unet Plc as
consideration for the planned completion of that transaction pursuant to the
terms of the asset sale agreement dated 15 May 2007 between (1) Sun 3C, (2) CEC
Unet Plc and (3) China Electronic Appliance Corporation for the acquisition of
certain assets ("CEC Unet Plc Assets").
The company has agreed to take an impairment charge on the assigned rights
equivalent to the difference in book value between the assigned rights at the
time of listing less amortisation and the deemed value of the CBP Rights and the
CEC Unet Plc assets, based on an external valuation.
Some of the other assets, including the Network Use Rights, are no longer
considered core for Sun 3C Media plc and active steps are being taken to dispose
of them. The realisation of these intangible assets by the Group and the Company
is dependent on a successful outcome of these actions.
The directors are aware that by their nature there is an inherent uncertainty in
the carrying value of the intangible fixed assets. Should the disposal of the
intangible assets prove less successful than the directors believe and should
the commercialisation of the China Business Post and CEC Unet Plc assets prove
less successful than the directors anticipate, the carrying value in the Balance
Sheet will need to be reduced by any shortfall.
The directors did engage independent valuers, Savills, to value these
intangibles as at 31 December 2006 and these valuations indicated no impairment
to the carrying value of the intangible assets other than those reflected in the
financial statements. Having reviewed the valuation and based on their own
knowledge and experience, the directors are satisfied that the value of the
intangible assets is not less than the net book value.
Intangible assets (continued)
+-+------------+----------+----------+------------+----------+----------+----------+
| | | Goodwill| Media| Product| Network|Television| Total|
| | | | rights|distribution| use| | |
| | | | | | | Rights| |
| | | | | rights| rights| | |
+-+------------+----------+----------+------------+----------+----------+----------+
| | | Euro| Euro| Euro| Euro| Euro| Euro|
+-+------------+----------+----------+------------+----------+----------+----------+
| |Cost | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| |At 1 January|- |- |- |- |- |- |
| |2006 | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| |Additions |- |2,332,800 |27,496,809 |35,424,000|6,307,200 |71,560,809|
+-+------------+----------+----------+------------+----------+----------+----------+
| |Arising on |12,418,087|- |- |- |- |12,418,087|
| |acquisition | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| | | | | | | | |
| | | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| |At 31 |12,418,087|2,332,800 |27,496,809 |35,424,000|6,307,200 |83,978,896|
| |December | | | | | | |
| |2006 | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| | | | | | | | |
| | | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| |Amortisation| | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| |At 1 January|- |- |- |- |- |- |
| |2006 | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| |Charge for |1,241,809 |233,280 |2,749,681 |1,771,200 |630,720 |6,626,690 |
| |the period | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| |Impairment |- |98,084 |1,872,923 |- |- |1,971,007 |
| |charge | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| | | | | | | | |
| | | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| |At 31 |1,241,809 |331,364 |4,622,604 |1,771,200 |630,720 |8,597,697 |
| |December | | | | | | |
| |2006 | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| | | | | | | | |
| | | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| |Net book | | | | | | |
| |value | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| |At 31 |11,176,278|2,001,436 |22,874,205 |33,652,800|5,676,480 |75,381,199|
| |December | | | | | | |
| |2006 | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| | | | | | | | |
| | | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| | | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| |At 31 |- |- |- |- |- |- |
| |December | | | | | | |
| |2005 | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
| | | | | | | | |
| | | | | | | | |
+-+------------+----------+----------+------------+----------+----------+----------+
The goodwill arising on the acquisition of Upstart Games Limited is made up as
follows:
+---+-------------------------------------------------------+---------------+
| | | Book value and|
| | | fair value|
| | | |
| | | Euro|
+---+-------------------------------------------------------+---------------+
| | | |
+---+-------------------------------------------------------+---------------+
| |Fixed assets |58,791 |
+---+-------------------------------------------------------+---------------+
| |Debtors |216,585 |
+---+-------------------------------------------------------+---------------+
| |Bank overdraft |(450,142) |
+---+-------------------------------------------------------+---------------+
| |Creditors |(605,256) |
+---+-------------------------------------------------------+---------------+
| | | |
+---+-------------------------------------------------------+---------------+
| | |(780,022) |
+---+-------------------------------------------------------+---------------+
| |Goodwill arising on acquisition |12,418,087 |
+---+-------------------------------------------------------+---------------+
| | | |
+---+-------------------------------------------------------+---------------+
| | |11,638,065 |
+---+-------------------------------------------------------+---------------+
| | | |
+---+-------------------------------------------------------+---------------+
| |Satisfied by: | |
+---+-------------------------------------------------------+---------------+
| |Fair value of shares issued |8,879,400 |
+---+-------------------------------------------------------+---------------+
| |Deferred consideration |2,013,080 |
+---+-------------------------------------------------------+---------------+
| |Cash |745,585 |
+---+-------------------------------------------------------+---------------+
| | | |
+---+-------------------------------------------------------+---------------+
| | |11,638,065 |
+---+-------------------------------------------------------+---------------+
| | | |
+---+-----------------------------+--------+--------+--+----+-----+---------+
| | | | | | | |
+---+-----------------------------+--------+--------+--+----+-----+---------+
+---+-----------------------------+--------+--------+--+----+-----+---------+
5. Called up Share capital
+----+-------------------------------------------------+--------------------+
| | | Group and Company |
+----+-------------------------------------------------+--------------------+
| | | 31 December |
+----+-------------------------------------------------+----------+---------+
| | | 2006| 2005|
+----+-------------------------------------------------+----------+---------+
| | | Euro| Euro|
+----+-------------------------------------------------+----------+---------+
| |Authorised | | |
+----+-------------------------------------------------+----------+---------+
| |190,000,000 ordinary shares of Euro0.05 each |- |9,500,000|
+----+-------------------------------------------------+----------+---------+
| |1,176,524,970 ordinary shares of Euro0.01 each |11,765,250|- |
+----+-------------------------------------------------+----------+---------+
| |75,000,000 preference shares of Euro0.01 each |750,000 |- |
+----+-------------------------------------------------+----------+---------+
| |248,475,030 deferred shares of Euro0.01 each |2,484,750 |- |
+----+-------------------------------------------------+----------+---------+
| | | | |
| | | | |
+----+-------------------------------------------------+----------+---------+
| | |15,000,000|9,500,000|
+----+-------------------------------------------------+----------+---------+
| | | | |
| | | | |
+----+-------------------------------------------------+----------+---------+
| | | | |
+----+-------------------------------------------------+----------+---------+
| |Allotted, called up but not fully paid | | |
+----+-------------------------------------------------+----------+---------+
| |10,700,175 ordinary shares of Euro0.05 each |- |535,009 |
+----+-------------------------------------------------+----------+---------+
| | | | |
| | | | |
+----+-------------------------------------------------+----------+---------+
| | | | |
+----+-------------------------------------------------+----------+---------+
| |Allotted, called up and fully paid | | |
+----+-------------------------------------------------+----------+---------+
| |385,067,792 ordinary shares of Euro0.01 each |3,850,678 |- |
+----+-------------------------------------------------+----------+---------+
| |75,000,000 preference shares of Euro0.01 each |750,000 |- |
+----+-------------------------------------------------+----------+---------+
| | | | |
| | | | |
+----+-------------------------------------------------+----------+---------+
| | |4,600,678 |- |
+----+-------------------------------------------------+----------+---------+
| | | | |
| | | | |
+----+-------------------------------------------------+----------+---------+
| | | | |
+----+-------------------------------------------------+----------+---------+
Share options
Share options in the Company were granted to directors under a company share
option scheme. All options vested immediately on grant.
The following share options were issued by the Company:
+--------------+----------------+--------------+------------------------+
|Date of grant | Number of|Exercise price|Exercise period |
| | ordinary shares| | |
| | under option| | |
+--------------+----------------+--------------+------------------------+
| | | | |
+--------------+----------------+--------------+------------------------+
|6 July 2006 | 20,500,000| #0.20|6 July 2009 to 6 July |
| | | |2016 |
+--------------+----------------+--------------+------------------------+
The fair value of equity settled share options granted is estimated at the date
of grant using a Black-Scholes option pricing model, taking into account the
terms and conditions upon which the options were granted. The following table
lists the inputs to the model:
Dividend yield 0%
Weighted average share price #0.215
Expected share price volatility 40%
Risk free interest rate 4.81%
Expected life of options 3.5 years
The expense recognised by the Group for share based payments during the year
ended 31 December 2006 was Euro2,498,551 (2005: Euronil).
6. Related party transactions
The company has taken advantage of the exemption in Financial Reporting Standard
Number 8 from the requirement to disclose transactions with group companies on
the grounds that consolidated financial statements are prepared by the ultimate
parent company.
During the year ended 31 December 2006 the Group paid consultancy fees of
Euro56,000 to Mr G O'Mahony, director, and Euro89,470 to Mr J McKeon, director.
Enquiries:
Brunswick Group LLP 020 7404 5959
James Hogan / Carole Cable
Blue Oar Securities
William Vandyk 020 7448 4400
About Sun 3C Media:
Sun 3C Media Plc ("Sun 3C", AIM: SCCC) is a Chinese mobile media and services
company based out of Beijing. Sun 3C is focused on two related, but separate
areas in China's mobile industry: content and services, and distribution and
payment. With our unique combination of assets, distribution network and highly
experienced management we are in a position to capitalise on an historic
opportunity in China's mobile services industry.
For more information visit: www.sun3cmedia.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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