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DJ Asia Wealth Group Holdings Interim Results to 31 August 2018

 
TIDMAWLP 
 
FOR IMMEDIATE RELEASE                                                         9 
October 2018 
 
                      Asia Wealth Group Holdings Limited 
 
                 ("Asia Wealth", the "Group" or the "Company") 
 
                           UNAUDITED INTERIM RESULTS 
 
                    FOR THE SIX MONTHS ENDED 31 AUGUST 2018 
 
The Board is pleased to report the unaudited interim results of Asia Wealth for 
the period from 1 March 2018 to 31 August 2018. The accounts have been prepared 
under IFRS and will shortly be available via the Company's website, 
www.asiawealthgroup.com. 
 
Chairman's Statement 
 
Financial Highlights 
 
The highlights for the six months ended 31 August 2018 include: 
 
  * Consolidated revenue of US$1,240,960 (2017: US$1,146,815) 
 
  * Gross profit for Meyer Group of US$541,350 (representing a gross margin of 
    44%) (2017: US$433,858 and 38%) 
 
  * Cash at bank and on hand of approximately US$1.4m at 31 August 2018 (2017: 
    $1.2m). 
 
The Group reports a profit after tax of approximately US$0.066 million on sales 
of US$1.241 million for the six months ended 31 August 2018. These sales were 
generated by the Company's wholly owned subsidiary, Meyer Asset Management 
Ltd., BVI. This improvement in profitability was principally caused by revenue 
increase. 
 
Cash balance has increased by US$40,978 and net assets by US$62,776, 
respectively, since 1st March 2018. 
 
The Board is continuing to forge new revenue generating relationships, as well 
as expanding revenue creating opportunities, in both new and existing avenues. 
We continue to seek alliances and partnerships with firms in the same and new 
sectors. 
 
Asia Wealth continues to seek investment opportunities in the Asia region and 
is currently engaged in multiple discussions on various potential 
acquisitions.  The Directors continue to run the business in a cost-effective 
manner. 
 
The accounts have not been audited or reviewed by the Company's auditors. 
 
The Directors of the Company accept responsibility for the content of this 
announcement. 
 
Richard Cayne 
 
Executive Chairman 
 
Contacts: 
 
Richard Cayne (Executive Chairman) 
 
Asia Wealth Group Holdings Limited, +66 2 2611 2561 
 
www.asiawealthgroup.com 
 
Guy Miller (Corporate Advisers) 
 
Peterhouse Capital Limited, +44 20 7220 9795 
 
EXTRACTS ARE SET OUT BELOW: 
 
ASIA WEALTH GROUP HOLDINGS LIMITED 
 
Consolidated Statement of Financial Position 
 
At 31 August 2018 
 
All amounts stated in U.S. Dollars 
 
                                          Note           31-Aug-18        31-Aug-17 
 
Non-current assets 
 
Fixed assets                                3               18,591           26,813 
 
Investment in property                      4              373,981          389,135 
 
                                                           392,572          415,948 
 
Current assets 
 
Cash and cash equivalents                                1,387,633        1,168,212 
 
Trade receivables                                          201,902          241,404 
 
Loans and other receivables                                 94,970          115,348 
 
Due from related party                                           -           18,619 
 
Prepayments and other assets                                97,047          105,550 
 
Available-for-sale investment                              318,162          359,926 
 
                                                         2,099,714        2,009,059 
 
Total assets                                        $    2,492,286   $    2,425,007 
 
Equity 
 
Share capital                               5              913,496          913,496 
 
Share-based payment reserve                 6                    -                - 
 
Consolidation reserve                                      405,997          405,997 
 
Translation reserve                                         25,839            1,512 
 
Accumulated deficit                                       (70,068)        (127,339) 
 
Total equity                                             1,275,264        1,193,666 
 
Non-current liabilities 
 
Liabilities under finance lease             7                4,485           13,267 
agreement 
 
Current liabilities 
 
Trade payables                                           1,136,351        1,115,220 
 
Due to related parties                                       1,177           29,082 
 
Liabilities under finance lease             7                8,970            8,845 
agreement 
 
Deferred revenue                                             2,609            2,572 
 
Other payables and accrued expenses                         63,430           62,355 
 
                                                         1,212,537        1,218,074 
 
Total liabilities                                        1,217,022        1,231,341 
 
Total equity and liabilities                        $    2,492,286   $    2,425,007 
 
ASIA WEALTH GROUP HOLDINGS LIMITED 
 
Consolidated Statement of Comprehensive Income 
 
For the half year ended 31 August 2018 
 
All amounts stated in U.S. Dollars 
 
                                         Note        Mar - Aug      Mar - Aug 
                                                       2018           2017 
 
Revenue                                               1,240,960      1,146,815 
 
Expenses 
 
Commission                                              685,743        695,430 
 
Professional fees                                       141,863        138,923 
 
Wages and salaries                                       20,423         13,392 
 
Directors' fees                            8            146,607        101,478 
 
Impairment expense                                        5,372              - 
 
Travel and entertainment                                 33,625         27,591 
 
Office expenses                                          21,117         22,186 
 
Rent                                                      8,518          8,252 
 
Marketing expenses                                        4,029          5,637 
 
Communication                                             2,352          2,311 
 
Depreciation                              3,4            16,575         16,196 
 
Bank charges                                              5,778          4,975 
 
Sundry expenses                                          10,594         16,015 
 
                                                      1,102,596      1,052,386 
 
Net profit/(loss) from operations                       138,364         94,429 
 
Other income/(expense) 
 
Foreign exchange gain/(loss)                           (72,477)         63,924 
 
Interest Income                                             199          4,812 
 
Investment income                                             -              - 
 
                                                       (72,278)         68,736 
 
Net profit/(loss) before finance                         66,086        163,165 
cost 
 
Finance cost 
 
Interest expense                                          (424)          (721) 
 
Net profit/(loss) before taxation                        65,662        162,444 
 
Taxation                                   9                  -              - 
 
Total comprehensive income (loss)                 $      65,662  $     162,444 
 
ASIA WEALTH GROUP HOLDINGS LIMITED 
 
Consolidated Statement of Changes in Equity 
 
For the half year ended 31 August 2018 
 
All amounts stated in U.S. Dollars 
 
                  31-Aug-18 
 
                                    Share Capital         Share-based   Consolidation  Translation  Retained  Non-Controlling  Equity 
                                                            Payment        Reserve       Reserve    Earnings     interest 
                                                            Reserve 
 
                               Number           US$ 
 
Balances at beginning of 1    11,433,433         913,496              -        405,997      28,725  (135,730)               - 1,212,488 
Mar 2018 
 
Translation differences                -               -              -              -     (2,886)          -               -   (2,886) 
 
Total comprehensive income             -               -              -              -           -     65,662               -    65,662 
 
Balances at end of  31 Aug    11,433,433         913,496              -        405,997      25,839   (70,068)               - 1,275,264 
2018 
 
 
 
 
                   31-Aug-17 
 
                                    Share Capital         Share-based   Consolidation  Translation  Retained  Non-Controlling  Equity 
                                                            Payment        Reserve       Reserve    Earnings     interest 
                                                            Reserve 
 
                               Number           US$ 
 
Balances at beginning of 1    11,433,433         913,496         10,708        405,997     (9,317)  (372,081)        (17,552)   931,251 
Mar 2017 
 
Share-based payment expired            -               -       (10,708)              -           -     10,708               -         - 
 
Disposal of subsidiary                 -               -              -              -           -     71,590          17,552    89,142 
 
Translation differences                -               -              -              -      10,829          -               -    10,829 
 
Total comprehensive income             -               -              -              -           -    162,444               -   162,444 
 
Balances at end of  31 Aug    11,433,433         913,496              -        405,997       1,512  (127,339)               - 1,193,666 
2017 
 
 
ASIA WEALTH GROUP HOLDINGS LIMITED 
 
Consolidated Statement of Cash Flows 
 
For the half year ended 31 August 2018 
 
All amounts stated in U.S. Dollars 
 
                                                    Mar - Aug       Mar - Aug 
                                                      2018            2017 
 

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DJ Asia Wealth Group Holdings Interim Results to 31 -2-

Operating activities 
 
Total comprehensive income/(Loss)                       65,662         162,444 
 
Add back Depreciation                                   16,575          16,196 
 
Receivables                                             26,675        (26,363) 
 
Loan and Other Receivable                                  327          17,698 
 
Prepayments and other assets                             5,475         (9,198) 
 
Payables                                              (58,241)         187,266 
 
Liabilities Under Finance Lease                        (5,230)         (3,150) 
Agreements 
 
Deferred Revenue                                         (108)             614 
 
Other Payables and Accrued Expenses                   (19,977)        (35,042) 
 
Cash flows from operating activities                    31,158         310,465 
 
Investing activities 
 
Acquisition of fixed assets                           (10,036)        (11,312) 
 
Investments                                             26,362        (50,653) 
 
Change in equity                                       (2,886)          99,971 
 
Cash flows from investing activities                    13,440          38,006 
 
Financing activities 
 
Net advances from related party                        (3,620)        (49,406) 
 
Cash flows from financing activities                   (3,620)        (49,406) 
 
Net increase/(decrease) in cash and cash                40,978         299,065 
equivalents 
 
Cash and cash equivalents at beginning               1,346,655         869,147 
of year 
 
Cash and cash equivalents at end of              $   1,387,633   $   1,168,212 
period 
 
 
 
 
Cash and cash equivalents comprise cash at 
bank. 
 
 
1)          GENERAL INFORMATION 
 
Asia Wealth Group Holdings Limited (the "Parent Company") was incorporated in 
the British Virgin Islands on 7 October 2010 under the BVI Business Companies 
Act, 2004.  The liability of the shareholders is limited by shares.  The Parent 
Company maintains its registered office in the British Virgin Islands and its 
financial records and statements are maintained and presented in U.S. Dollars, 
rounded to the nearest dollar.   The financial statements were authorised for 
issue by the Board of Directors on 5 October 2018. 
 
The  principal  activity  of  the  Parent  Company  and  its  subsidiaries 
(the  "Group")   is  to  provide  wealth management  advisory services to 
Asian-based  high net worth individuals and corporations. 
 
The Parent Company's shares were listed on the NEX Exchange Growth Market based 
in London, United Kingdom. The Parent Company has the following subsidiaries as 
at 31 August 2018: 
 
                       Incorporation Country of        Functional           Ownership 
                           Date      Incorporation     Currency         Interest 
 
                                                                         2018    2017 
 
Meyer Asset Management     2000      British Virgin    US Dollars     100.00% 100.00% 
Ltd.                                 Islands 
 
 ("Meyer BVI") 
 
Meyer International        2010      Thailand          Thailand        49.00%  49.00% 
Limited                                                Baht 
 
 ("Meyer Thailand") 
 
Prime RE Limited           2016      Thailand          Thailand        49.00%  49.00% 
                                                       Baht 
 
 ("Prime RE") 
 
BTS Property Holdings      2014      Thailand          Thailand            -%      -% 
Limited                                                Baht 
 
 ("BTS Property") 
 
 
On 13 June 2012, Meyer BVI was licensed to provide investment business services 
under Section 3 of the Securities and Investment Business Act, 2010 of the 
British Virgin Islands. 
 
On 23 September 2016, Meyer Thailand acquired 51.00% of Prime RE. 
 
On 20 October 2016, 51.00% of Meyer Thailand, owned beneficially via a trust 
agreement in favour of Meyer BVI, was acquired by Prime RE. 
 
The Parent Company is the indirect owner of 51.00% of the outstanding shares of 
Prime RE and Meyer Thailand, and accordingly the Parent Company intends to 
account for them as wholly owned subsidiaries. 
 
Effective 1 March 2017, the Parent Company, through Meyer Thailand, transferred 
its ownership of BTS Property but retained title as a nominee shareholder on 
behalf of the ultimate beneficial owner, and accordingly the Parent Company has 
not accounted for it as a subsidiary. 
 
2)          SIGNIFICANTACCOUNTING POLICIES 
 
The  significant  accounting  policies adopted  in  the  preparation  of  the 
 Group's  consolidated financial statements are set out below. 
 
2)          SIGNIFICANTACCOUNTING POLICIES (Cont'd) 
 
a)          Statement of compliance 
 
The consolidated financial statements of the Group have been prepared in 
accordance with International Financial Reporting Standards ("IFRSs") and 
interpretations issued by the IFRS Interpretations Committee ("IFRS IC") 
applicable to companies reporting under IFRSs.  The financial statements comply 
with IFRSs as issued by the International Accounting Standards Board ("IASB"). 
 
b)           Basis of preparation 
 
The consolidated financial statements have been prepared on the basis of 
historical costs and do not take into account increases in the market value of 
assets. 
 
The accounting policies have been applied consistently by the Group and are 
consistent with those used in the previous year. 
 
There are no new, revised or amended IFRSs or IFRS IC interpretations that are 
effective for the first time for the financial period beginning on 1 March 2018 
that would be expected to have a material impact on the Group's consolidated 
financial statements. 
 
c)           Use of estimates 
 
The preparation of consolidated financial statements in conformity with IFRSs 
requires management to make judgments, estimates and assumptions that affect 
the application of policies and the reported amounts of assets and liabilities, 
income and expenses. 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 judgments about carrying values of assets and liabilities that are 
not readily apparent from other sources.  Actual results may differ from these 
estimates. 
 
The estimates and underlying assumptions are reviewed on an ongoing basis. 
Revisions to accounting estimates are recognised in the period in which the 
estimate is revised if the revision affects only that period or in the period 
of the revision and future periods if the revision affects both current and 
future periods. 
 
Critical accounting estimates and judgments 
 
Depreciation 
 
Management regularly reviews the estimated useful lives and residual values of 
the Group's fixed assets and will revise rates of depreciation where useful 
lives and residual values previously estimated have changed. 
 
Fair value of investment property 
 
Fair values, where possible, are based on open market values, being the 
estimated amount for which a property could be exchanged on the date of 
valuation between a willing buyer and a willing seller in an arm's length 
transaction, after proper marketing wherein the parties had each acted 
knowledgeably, prudently and without compulsion. However, due to a lack of 
liquidity in the market, and the fact that no similar transactions have 
recently taken place, it was not possible to calculate the current market price 
of the investment property in this way. 
 
2)          SIGNIFICANTACCOUNTING POLICIES (Cont'd) 
 
c)           Use of estimates (Cont'd) 
 
Leases 
 
In  determining  whether  a  lease  is  to  be  classified  as  an  operating 
 lease  or  a  finance  lease, management is required to use their judgment as 
to whether the significant risks and rewards of ownership of the leased asset 
have been transferred or not. 
 
             d)        Investment in subsidiaries 
 
             Basis of consolidation 
 
             The consolidated financial statements include the financial 
statements of the Parent Company and its subsidiaries for the six month ended 
31 August 2018.  Details of the Group are set out in note 1. 
 
             Subsidiaries are enterprises controlled by the Parent Company. 
Control is achieved when the Parent Company is exposed, or has rights, to 
variable returns from its involvement with the investee and has the ability to 
affect those returns through its power to direct the activities of the entity. 
Subsidiaries are fully consolidated from the date on which control is 
transferred to the Parent Company.  Assets, liabilities, income and expenses of 
a subsidiary acquired or disposed of during the year are included or excluded 
in the consolidated financial statements from the date the Parent Company gains 
control or until the date the Parent Company ceases to control the subsidiary. 
 
             Non-controlling interests pertain to the equity in a subsidiary 
not attributable, directly or indirectly to the Parent Company.  Any equity 
instruments issued by a subsidiary that are not owned by the Parent Company are 
non-controlling interests including preferred shares and options under 
share-based transactions. 
 
             Non-controlling interests represent the portion of profit or loss 
and net assets in subsidiaries not wholly-owned and are presented separately in 
the consolidated statement of comprehensive income, consolidated statement of 
changes in equity and consolidated statement of financial position, separately 
from the Parent Company's equity. 
 
             Losses within a subsidiary are attributed to the non-controlling 
interests even if that results in a deficit balance. 
 
             A change in the ownership interest of a subsidiary, without a loss 
of control, is accounted for as an equity transaction.  Any difference between 
the amount by which the non-controlling interests are adjusted and the fair 
value of the consideration paid or received is recognised directly in equity as 

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DJ Asia Wealth Group Holdings Interim Results to 31 -3-

an "equity reserve" and attributed to the owners of the Group. 
 
             Where necessary, adjustments are made to the financial statements 
of the subsidiary to bring the accounting policies used in line with those used 
by the Parent Company. 
 
             All intra-group transactions, balances, income and expenses are 
eliminated in consolidation.  Unrealised losses are eliminated in the same way 
as unrealised gains, but only to the extent that there is no evidence of 
impairment. 
 
2)          SIGNIFICANT ACCOUNTING POLICIES (Cont'd) 
 
d)          Investment in subsidiaries (Cont'd) 
 
             Acquisitions 
 
The acquisition method of accounting is used to account for business 
combinations by the Group. 
 
The consideration transferred for the acquisition of a subsidiary or business 
comprises the fair value of the assets transferred, the liabilities incurred 
and the equity interests issued by the Group.  The consideration transferred 
also includes the fair value of any contingent consideration arrangement and 
the fair value of any pre-existing equity interest in the subsidiary. 
 
Acquisition-related costs are expensed as incurred. 
 
Identifiable assets acquired and liabilities and contingent liabilities assumed 
in a business combination are, with limited exceptions, measured initially at 
their fair values at the acquisition date. 
 
On an acquisition-by-acquisition basis, the Group recognises any 
non-controlling interest in the acquiree at the date of acquisition either at 
fair value or at the non-controlling interest's proportionate share of the 
acquiree's net identifiable assets. 
 
The excess of (i) the consideration transferred, the amount of any 
non-controlling interest in the acquiree and the acquisition-date fair value of 
any previous equity interest in the acquiree over the (ii) fair value of the 
net identifiable assets acquired is recorded as goodwill. 
 
Where settlement of any part of cash consideration is deferred, the amounts 
payable in the future are discounted to their present value as at the date of 
exchange. The discount rate used is the entity's incremental borrowing rate, 
being the rate at which a similar borrowing could be obtained from an 
independent financier under comparable terms and conditions. 
 
Contingent consideration is classified either as equity or a financial 
liability. Amounts classified as a financial liability are subsequently 
remeasured to fair value with changes in fair value recognised in profit or 
loss. 
 
If the business combination is achieved in stages, the acquisition date 
carrying value of the acquirer's previously held equity interest in the 
acquiree is remeasured to fair value at the acquisition date. Any gains or 
losses arising from such remeasurement are recognised in profit or loss. 
 
e)          Fixed assets 
 
Items of fixed assets are stated at cost less accumulated depreciation. 
Depreciation is charged to the consolidated statement of comprehensive income 
on a straight-line basis over the estimated useful lives of fixed assets. 
 
Subsequent expenditure incurred to replace a component of a fixed asset is 
capitalised only when it increases the future economic benefits embodied in the 
item of a fixed asset.  All other expenditure is recognised in the consolidated 
statement of comprehensive income when it is incurred. 
 
2)          SIGNIFICANT ACCOUNTING POLICIES (Cont'd) 
 
e)          Fixed assets (Cont'd) 
 
The annual rates of depreciation in use are as follows: 
 
Leasehold improvements                                      20% 
 
Office equipment                                                    20-33% 
 
Vehicles                                                                    20% 
 
f)          Investment property 
 
Investment property is property held either to earn rental income or capital 
appreciation or for both, but not for sale in the ordinary course of business, 
use in the production or supply of goods or services or for administrative 
purposes. Investment property is initially measured at cost and subsequently at 
cost less any accumulated depreciation and impairment losses (refer to 
accounting policy (p)), if any, with any change therein recognised in the 
consolidated statement of comprehensive income. 
 
Investment property comprises condominium units. 
 
Cost includes expenditure that is directly attributable to the acquisition of 
investment property. The cost of self-constructed investment property includes 
the cost of materials and direct labour, any other costs directly attributable 
to bringing the investment property to a working condition for their intended 
use and capitalised borrowing costs. 
 
Any gain or loss on disposal of an investment property (calculated as the 
difference between the net proceeds from disposal and the carrying amount of 
the item) is recognised in the consolidated statement of comprehensive income. 
When an investment property that was previously classified as property, plant 
and equipment is sold, any related amount included in the revaluation reserve 
is transferred to retained earnings. 
 
When the use of property changes such that it is reclassified as fixed assets, 
its fair value at the date of reclassification becomes its cost for subsequent 
accounting. 
 
Depreciable investment property is stated at cost less accumulated 
depreciation.  Depreciation is charged to the consolidated statement of 
comprehensive income on a straight-line basis over the estimated useful lives 
of the investment property. 
 
The annual rate of depreciation in use for condominium units is 5%. 
 
Subsequent expenditure incurred is capitalised only when it increases the 
future economic benefits embodied in that property.  All other expenditure is 
recognised in the consolidated statement of comprehensive income when it is 
incurred. 
 
             g)          Cash and cash equivalents 
 
 
For the purpose of presentation in the statement of cash flows, cash includes 
current deposits with banks and other short-term highly liquid investments with 
original maturities of three months or less that are readily convertible to 
known amounts of cash, are subject to an insignificant risk of changes in 
value, and bank overdrafts. 
 
2)          SIGNIFICANT ACCOUNTING POLICIES (Cont'd) 
 
             h)          Loans and 
receivables 
 
Loans and receivables are non-derivative financial assets with fixed or 
determinable payments that are not quoted in an active market.  Financial 
assets that are classified as loans and receivables comprise trade receivables, 
loans and other receivables and due from related party. 
 
Originated loans and receivables are recognised on the day that they are 
transferred to the Group. 
 
Financial assets classified as loans and receivables are carried at amortised 
cost using the effective interest method, less impairment losses, if any. 
 
Financial assets are derecognised when the rights to receive cash flows have 
expired or the Group has transferred substantially all risks and rewards of 
ownership. 
 
Trade receivables are recognised initially at fair value and are subsequently 
recorded at fair value reduced by any appropriate allowances for estimated 
irrecoverable amounts. A provision for impairment of trade receivables is 
established when there is evidence that the Group will not be able to collect 
amounts due. 
 
The Group primarily uses the specific identification method to determine if a 
receivable is impaired.  The carrying amount of the receivable is reduced 
through the use of an allowance account, and the amount of the loss is 
recognised in the consolidated statement of comprehensive income. 
 
The Group determines its allowance by considering a number of factors, 
including the length of time a trade receivable is past due, the Group's 
previous loss history, the customer's current ability to pay its obligation to 
the Group, and the condition of the general economy and the industry as a 
whole.  The Group writes off trade receivables when they become uncollectible. 
Actual bad debts, when determined, reduce the allowance, the adequacy of which 
management then reassesses.  The Group writes off accounts after a 
determination by management that the amounts at issue are no longer likely to 
be collected, following the exercise of reasonable collection efforts and upon 
management's determination that the costs of pursuing the collection outweigh 
the likelihood of recovery. 
 
i)        Available-for-sale ("AFS") investments 
 
AFS investments are carried at fair value.  Gains and losses arising from 
changes in the fair value are recognised as other comprehensive income.  When 
securities classified as AFS are sold or impaired, the accumulated fair value 
adjustments recognised in other comprehensive income are included in the 
consolidated statement of comprehensive income as gains and losses from 
investment securities. 
 
AFS are presented as non-current assets unless they mature, or the Group 
intends to dispose of them within twelve (12) months from the end of the 
reporting period. 
 
j)           Associates 
 
Associates are those enterprises in which the Group has significant influence, 
but not control, over the financial and operating policies.  The consolidated 
financial statements include the Group's share of the total recognised gains 
and losses of associates on an equity accounted basis, from the date that 
significant influence commences until the date that significant influence 
ceases.  When the Group's share of losses exceeds the carrying amount of the 
associate, the carrying amount is reduced to nil and recognition of further 
losses is discontinued except to the extent that the Group has incurred 
obligations in respect of the associate. 
 
2)        SIGNIFICANT ACCOUNTING POLICIES (Cont'd) 
 
             k)          Share capital and accumulated deficit 
 
Ordinary shares are classified as equity. Incremental costs directly 
attributable to the issue of ordinary shares are recognised as a deduction from 
equity. 
 

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DJ Asia Wealth Group Holdings Interim Results to 31 -4-

Accumulated deficit represent the cumulative balance of periodic net income/ 
loss, dividend distributions and prior period adjustments. 
 
             l)           Share-based payment 
 
The Group entered into a series of equity-settled, share-based payment 
transactions, under which the Group received services from a third party as 
consideration for equity instruments (shares, options or warrants) of the 
Group. 
 
For non-vesting share-based payments, the fair value of the service received in 
exchange for the shares is recognised as an expense immediately with a 
corresponding credit to share capital. 
 
For share-based payments with vesting periods, the service received is 
recognised as an expense by reference to the fair value of the share options 
granted or warrants issued. The total expense is recognised over the vesting 
period, which is the period over which all of the specified vesting conditions 
are to be satisfied with a corresponding credit to the share capital reserve. 
 
             m)        Foreign currency 
 
Functional and presentation currency 
 
The subsidiaries' functional currencies are disclosed in note 1 to the 
financial statements.  The consolidated financial statements are presented in 
U.S. Dollars, rounded off to the nearest dollar. 
 
Transactions and balances 
 
Transactions in foreign currencies are converted at the foreign currency 
exchange rate ruling at the date of the transaction. Monetary assets and 
liabilities denominated in foreign currencies are translated at the foreign 
currency closing exchange rate ruling at the reporting date.  Foreign currency 
exchange differences arising on conversion or translation and realised gains 
and losses on disposals or settlements of monetary assets and liabilities are 
recognised in the consolidated statements of income and comprehensive income. 
Non-monetary assets and liabilities denominated in foreign currencies that are 
measured at fair value are translated at the foreign currency exchange rates 
ruling at the dates that the values were determined.  Foreign currency exchange 
differences relating to investments are included in net realised/unrealised 
gain/(loss) on investments.  All other foreign currency exchange differences 
relating to monetary items, including cash and cash equivalents, are presented 
in the consolidated statements of income and comprehensive income. 
 
Foreign operations 
 
The assets and liabilities of foreign operations, including goodwill and fair 
value adjustments arising on acquisition, are translated into U.S. Dollars at 
the exchange rates ruling at the reporting date.  The income and expenses of 
foreign operations are translated into U.S. Dollars at the average rate.  The 
net differences arising from translation and remeasurement of foreign 
operations are recognised as other comprehensive income and accumulated in a 
separate reserve within equity.  The cumulative amount is reclassified to 
profit and loss when the foreign operation is disposed of. 
 
2)            SIGNIFICANT ACCOUNTING POLICIES (Cont'd) 
 
m)        Foreign currency (Cont'd) 
 
None of the foreign operations has the currency of a hyperinflationary economy. 
 
Translation reserve 
 
Assets and liabilities of the Group's non-U.S. Dollar functional currency 
subsidiaries are translated into U.S. Dollars at the closing exchange rates at 
the reporting date.  Revenues and expenses are translated at the average 
exchange rates for the year.  All cumulative differences from the translation 
of the equity of foreign subsidiaries resulting from changes in exchange rates 
are included in a separate caption within equity without affecting income. 
 
n)          Leases 
 
Leases of equipment where the Group assumes substantially all the benefits and 
risks of ownership are classified as finance leases.  Finance leases are 
capitalised at the estimated present value of the underlying lease payments. 
Each lease payment is allocated between the liability and finance charges so as 
to achieve a constant rate on the finance balance outstanding.  The 
corresponding rental obligations, net of finance charges, are recorded as 
long-term liabilities.  The finance charge is taken to the consolidated 
statement of comprehensive income over the lease period.  Assets acquired under 
finance lease agreements are depreciated over their useful lives. 
 
Leases of assets under which all the risks and rewards of ownership are 
effectively retained by the lessor are classified as operating leases. 
Payments made under operating leases are charged to the consolidated statement 
of comprehensive income on a straight line basis over the term of the lease. 
When an operating lease is terminated before the lease term has expired, any 
penalty is recognised as an expense in the period in which the termination 
takes place. 
 
             o)          Financial liabilities 
 
Financial liabilities are non-derivative contractual obligations to deliver 
cash or another financial asset to another entity and comprise trade payables, 
due to related parties, liabilities under finance lease agreements and other 
payables and accrued expenses. 
 
These financial liabilities are recognised initially at fair value less any 
directly attributable transaction costs and subsequently carried at amortised 
cost using the effective interest method. 
 
Financial liabilities are derecognised when the obligation specified in a 
contract is discharged, cancelled or expired. 
 
The carrying amounts of the Group's assets are reviewed at each reporting date 
to determine whether there is any indication of impairment.  If any such 
indication exists, the asset's recoverable amount is estimated.  The 
recoverable amount is estimated as the greater of an asset's net selling price 
or value in use.  An impairment loss is recognised in the consolidated 
statement of comprehensive income whenever the carrying amount of an asset or 
its cash-generating unit exceeds its recoverable amount. 
 
If in a subsequent period, the amount of an impairment loss decreases and the 
decrease can be linked objectively to an event occurring after the write-down, 
the write-down is reversed through the consolidated statement of comprehensive 
income. 
 
2)          SIGNIFICANT ACCOUNTING POLICIES (Cont'd) 
 
p)          Impairment 
 
An impairment is reversed only to the extent that the asset's carrying amount 
does not exceed the carrying amount that would have been determined, net of 
depreciation or amortisation, if no impairment loss had been recognised. 
 
q)          Revenue and expense recognition 
 
In relation to the rendering of professional services, the Group recognises fee 
income as time is expended and costs are incurred, provided the amount of 
consideration to be received is reasonably determinable and there is reasonable 
expectation of its ultimate collection. 
 
Rental income arising from operating leases on investment property is 
recognised in the consolidated statement of comprehensive income on a straight 
line basis over the term of the lease. 
 
Interest income is recognised in the consolidated statement of comprehensive 
income as it accrues. 
 
All expenses are recognised in the consolidated statement of comprehensive 
income on the accrual basis. 
 
r)          Offsetting 
 
Financial assets and liabilities are offset and the net amount is reported in 
the consolidated statement of financial position whenever the Group has a 
legally enforceable right to set off the recognised amounts and the 
transactions are intended to be settled on a net basis. 
 
s)          Segment reporting 
 
The Group's operating businesses are organised and managed separately according 
to geographical area, with each segment representing a strategic business unit 
that serves a different market.  Financial information on business segments is 
presented in note 14 of the consolidated financial statements. 
 
             t)           Taxation 
 
Taxation on net profit before taxation for the year comprises both current and 
deferred tax. 
 
Current tax is the expected income tax payable on the taxable income for the 
year, using tax rates enacted or substantially enacted at the reporting date 
and any adjustment to tax payable in respect of previous years in the countries 
where the Parent Company and its subsidiaries operate and generate taxable 
income. 
 
The Group accounts for income taxes in accordance with IAS 12, "Income Taxes," 
which requires that a deferred tax liability be recognised for all taxable 
temporary differences and a deferred tax asset be recognised for an 
enterprise's deductible temporary differences, operating losses, and tax credit 
carryforwards.  A deferred tax asset or liability is measured using the 
marginal tax rate that is expected to apply to the last dollars of taxable 
income in future years.  The effects of enacted changes in tax laws or rates 
are recognised in the period that includes the enactment date. 
 
2)          SIGNIFICANT ACCOUNTING POLICIES (Cont'd) 
 
 u)         Related parties 
 
Related parties are individuals and companies where the individual or company 
has the ability, directly or indirectly, to control the other party or exercise 
significant influence over the other party in making financial and operating 
decisions. 
 
              v)        Amended and newly issued accounting standards 
 
A number of new standards, amendments to existing standards and interpretations 
are effective for annual periods beginning after 1 March 2017 and have not been 
applied in preparing these consolidated financial statements.  None of these 
are expected to have a significant effect on the consolidated financial 
statements of the Group; however, IFRS 16, "Leases", effective for annual 
periods beginning on or after 1 January 2019, and IFRS 9, "Financial 
Instruments: Classification and Measurement" effective for annual periods 
beginning on or after 1 January 2018, may result in additional disclosures for 
the Group upon implementation. 
 
3)          FIXED ASSETS 
 

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DJ Asia Wealth Group Holdings Interim Results to 31 -5-

                                  Leasehold       Office       Vehicles        Total 
                                 improvement     equipment 
 
Cost: 
 
At 28 February 2018                   20,281        36,832        55,392       112,505 
 
Translation reserve                  (1,543)       (6,251)       (5,844)      (13,638) 
 
Disposal                                   -             -             -             - 
 
Additions                                  -             -             -             - 
 
At 31 August 2018                     18,738        30,581        49,548        98,867 
 
Depreciation: 
 
At 28 February 2018                   20,281        31,617        35,477        87,375 
 
Translation reserve                  (1,543)       (6,663)       (5,051)      (13,257) 
 
Disposal                                   -             -             -             - 
 
Charge for 1 March - 31                    -         1,163         4,995         6,158 
August 2018 
 
At 31 August 2018                     18,738        26,117        35,421        80,276 
 
Net book value: 
 
At 31 August 2018                         $-        $4,464       $14,127       $18,591 
 
At 28 February 2018                       $-        $5,215       $19,915       $25,130 
 
As at 31 August 2018, the Group had fixed assets under a finance lease 
agreement (refer to note 6) with a net book value of $13,875 (2017 : $23,358). 
 
4)  INVESTMENT PROPERTY 
 
                                                               Condominium 
                                                                     units 
 
    Cost: 
 
    At 28 February 2018                                            430,398 
 
    Translation reserve 
                                                                  (17,143) 
 
    At 31 August 2018                                              413,255 
 
    Depreciation: 
 
    At 28 February 2018                                             30,055 
 
    Translation reserve 
                                                                   (1,197) 
 
    Charge for 1 March - 31                                         10,416 
    August 2018 
 
    At 31 August 2018                                               39,274 
 
    Net book value: 
 
    At 31 August 2018                                       $      373,981 
 
    At 28 February 2018                                     $      400,343 
 
 
             Investment property comprises condominium units at The Prime 11 
Condominium in Bangkok, Thailand. 
 
5)          SHARE CAPITAL 
 
             Authorised 
 
             The Parent Company is authorised to issue an unlimited number of 
no par value shares of a single class 
 
Issued and fully paid:                           31-Aug-18     31-Aug-17 
 
11,433,433  (2016: 11,433,433)  shares of no      $913,496      $913,496 
par value per share. 
 
             Each share in the Parent Company confers upon the shareholder: 
 
(a)      the right to one vote on any resolution of shareholders; 
 
(b)     the right to an equal share in any dividend paid by the Parent Company; 
and 
 
(c)     the right  to an equal  share  in the distribution  of the surplus 
assets  of the Parent  Company  on  its liquidation 
 
6)          SHARE-BASED PAYMENTS 
 
            Options 
 
             All share options were expired 
 
  Grant Date      Expired date      Exercise    31-Aug-18    31-Aug-17 
                                       Price 
 
  1/Oct/2012      27/May/2017          GBP0.60            -            - 
 
  1/Jul/2013      1/Jul/2016           GBP0.60            -            - 
 
  31/Jul/2013     30/Jul/2017          GBP0.60            -            - 
 
7)          LEASES 
 
                                                 31-Aug-18     31-Aug-17 
 
Liabilities under finance lease 
agreement: 
 
Less than 1 year                                     8,970         8,845 
 
1 to 5 years                                         4,485        13,267 
 
Total                                               13,455        22,112 
 
Less: Deferred interest                            (1,086)       (2,070) 
 
                                                    12,369        20,042 
 
Less: Current portion net of short term            (8,187)       (7,847) 
deferred interest 
 
Net                                                 $4,182       $12,195 
 
 
8)          RELATED PARTY TRANSACTIONS 
 
During the half year, the Group paid director's fees amounting to $146,607 
(2017:$101,478). 
 
9)          TAXATION 
 
There is no mainstream taxation in the British Virgin Islands. The Parent 
Company and Meyer BVI are not subject to any forms of taxation in the British 
Virgin Islands, including income, capital gains and withholding taxes. 
 
Meyer Thailand, and Prime RE are subject to Thailand graduated statutory income 
tax at a rate of 0-20% on profit before tax. 
 
The current tax expense included in the consolidated statement of comprehensive 
income was $nil (20 17: $nil). 
 
The Group had no deferred tax assets or liabilities as at the reporting date. 
 
10)       SEGMENTAL INFORMATION 
 
The Group has three reportable segments based on geographical areas where the 
Group operates and these were as follows: 
 
British Virgin Islands ("BVI") - where the Company and Meyer BVI are domiciled. 
The Parent Company serves as the investment holding company of the Group and 
Meyer BVI provides wealth management and advisory services. 
 
Thailand - where Meyer Thailand is domiciled and provides marketing and 
economic consulting services to the Group; where Prime RE is domiciled and 
provides property rental services; and BTS Property is domiciled and provides 
property management services. 
 
The reportable segmental revenue, other profit and loss disclosures and assets 
were as follows: 
 
10)       SEGMENTAL INFORMATION (Cont'd) 
 
Revenue 
 
                             31-Aug-18                               31-Aug-17 
 
                  Total    Inter-segment   Revenue        Total    Inter-segment  Revenue 
                 segment      revenue       from         segment      revenue       from 
                 revenue                  external       revenue                  external 
                                          customers                              customers 
 
BVI              1,225,309             -   1,225,309     1,127,464             -  1,127,464 
 
Thailand           125,988     (110,337)      15,651       125,187     (105,836)     19,351 
 
Total           $1,351,297    $(110,337)  $1,240,960    $1,252,651    $(105,836) $1,146,815 
 
The revenue between segments is carried out at arm's length. 
 
Other profit and loss disclosures 
 
                            31-Aug-18                              31-Aug-17 
 
                Commission Depreciation Income tax    Commission  Depreciation  Income 
                 expense                                expense                   tax 
 
BVI                683,959          428           -       693,671          383         - 
 
Thailand             1,784       16,147           -         1,759       15,813         - 
 
Total             $685,743      $16,575          $-      $695,430      $16,196        $- 
 
             Assets 
 
                                      31-Aug-18                 31-Aug-17 
 
                                        Total                     Total 
                                       Assets                    Assets 
 
BVI                                    1,981,851                 1,820,514 
 
Thailand                                 510,435                   604,493 
 
Total                                 $2,492,286                $2,425,007 
 
Intersegment assets amounting to $3,436,675 (2017: $3,220,060) were already 
eliminated in the total assets per segment above. 
 
Liabilities 
 
                                      31-Aug-18                 31-Aug-17 
 
                                        Total                     Total 
                                     Liabilities               Liabilities 
 
BVI                                    1,152,427                 1,135,247 
 
Thailand                                  64,595                    96,094 
 
Total                                 $1,217,022                $1,231,341 
 
Intersegment Liabilities amounting to $3,314,360 (2017: $3,098,619) were 
already eliminated in the total Liabilities per segment above. 
 
11)       FINANCIAL INSTRUMENTS AND ASSOCIATED RISKS 
 
Financial assets of the Group include cash and cash equivalents, trade 
receivables, loans and other receivables, due from related party and 
available-for-sale investment. Financial liabilities include trade payables, 
due to related parties and other payables and accrued expenses. 
 
a)  Market risk 
 
Market risk represents the potential loss that can be caused by a change in the 
market value of the Group's financial instruments. The Group's exposure to 
market risk is determined by a number of factors which include interest rate 
risk. 
 
Interest rate risk 
 
The financial instruments exposed to interest rate risk comprise cash and cash 
equivalents. 
 
The Group is exposed to interest rate cash flow risk on cash and cash 
equivalents, which earn interest at floating interest rates that are reset as 
market rates change. The Group is exposed to interest rate risk to the extent 
that these interest rates may fluctuate. 
 
A sensitivity analysis was performed with respect to the interest-bearing 
financial instruments with exposure to fluctuations in interest rates and 
management noted that there would be no material effect to shareholders' equity 
or net income for the year. 
 
b)  Credit risk 
 
Credit risk represents the accounting loss that would be recognised at the 
reporting date if financial instrument counterparties failed to perform as 
contracted. 
 
As at 31 August 2018, the Group's financial assets exposed to credit risk 
amounted to the following: 
 
                                      31-Aug-18             31-Aug-17 
 

(MORE TO FOLLOW) Dow Jones Newswires

October 09, 2018 02:00 ET (06:00 GMT)

DJ Asia Wealth Group Holdings Interim Results to 31 -6-

Cash and cash                          1,387,633             1,168,212 
equivalents 
 
Trade                                    201,902               241,404 
receivables 
 
Loans and other                           94,970               115,348 
receivables 
 
Due from related party                         -                18,619 
 
Available-for-sale                       318,162               359,926 
investment 
 
                                      $2,002,667            $1,903,509 
 
             The ageing of the Group's trade receivables as at 31 August 2018 
is as follows: 
 
                         31-Aug-18                       31-Aug-17 
 
                      Gross     Impairment            Gross    Impairment 
 
1 - 90 days             145,951          -             166,195          - 
 
91 - 180 days            55,951          -              75,209          - 
 
                       $201,902          -            $241,404          - 
 
The Group invests all its available cash and cash equivalents in several banks. 
The Group is exposed to credit risk to the extent that these banks may be 
unable to repay amounts owed.  To manage the level of credit risk, the Group 
attempts to deal with banks of good credit standing, whenever possible. 
 
11)       FINANCIAL INSTRUMENTS AND ASSOCIATED RISKS (Cont'd) 
 
The Group has two significant customers which expose it to credit risk, though 
the exposure to credit risk is reduced as these customers have a good working 
relationship with the Group. To reduce exposure to credit risk, the Group may 
perform ongoing credit evaluations on the financial condition of its customers, 
but generally does not require collateral. 
 
 The Group invests all its available cash and cash equivalents in several 
banks. The Group is exposed to credit risk to the extent that these banks may 
be unable to repay amounts owed.  To manage the level of credit risk, the Group 
attempts to deal with banks of good credit standing, whenever possible. 
 
The Group has two significant customers which expose it to credit risk, though 
the exposure to credit risk is reduced as these customers have a good working 
relationship with the Group.  To reduce exposure to credit risk, the Group may 
perform ongoing credit evaluations on the financial condition of its customers, 
but generally does not require collateral. 
 
The Group is exposed to credit risk with respect to its investments. 
 Bankruptcy or insolvency of the investee companies may cause the Group's 
rights to the security to be delayed or limited. 
 
The extent of the Group's exposure to credit risk in respect of these financial 
assets approximates their carrying values. 
 
c)         Liquidity risk 
 
Liquidity risk is the risk that the Group will not be able to meet its 
financial obligations as they fall due. The Group's approach to managing 
liquidity is to ensure, as far as possible, that it will always have sufficient 
liquidity to meet its liabilities when due, under both normal and stressed 
conditions, without incurring unacceptable losses or risking damage to the 
Group's reputation.  Typically, the Group ensures that it has sufficient cash 
on demand to meet expected operational needs as they arise. The Group invests 
all its available cash and cash equivalents in several banks. The Group is 
exposed to credit risk to the extent that these banks may be unable to repay 
amounts owed.  To manage the level of credit risk, the Group attempts to deal 
with banks of good credit standing, whenever possible. 
 
The Group has two significant customers which expose it to credit risk, though 
the exposure to credit risk is reduced as these customers have a good working 
relationship with the Group.  To reduce exposure to credit risk, the Group may 
perform ongoing credit evaluations on the financial condition of its customers, 
but generally does not require collateral. 
 
The Group is exposed to credit risk with respect to its investments. 
 Bankruptcy or insolvency of the investee companies may cause the Group's 
rights to the security to be delayed or limited. 
 
The extent of the Group's exposure to credit risk in respect of these financial 
assets approximates their carrying values. 
 
c)         Liquidity risk 
 
Liquidity risk is the risk that the Group will not be able to meet its 
financial obligations as they fall due. The Group's approach to managing 
liquidity is to ensure, as far as possible, that it will always have sufficient 
liquidity to meet its liabilities when due, under both normal and stressed 
conditions, without incurring unacceptable losses or risking damage to the 
Group's reputation.  Typically, the Group ensures that it has sufficient cash 
on demand to meet expected operational needs as they arise.The Group is exposed 
to credit risk with respect to its investments.  Bankruptcy or insolvency of 
the investee companies may cause the Group's rights to the security to be 
delayed or limited. 
 
The extent of the Group's exposure to credit risk in respect of these financial 
assets approximates their carrying values. 
 
c) Liquidity risk 
 
Liquidity risk is the risk that the Group will not be able to meet its 
financial obligations as they fall due. The Group's approach to managing 
liquidity is to ensure, as far as possible, that it will always have sufficient 
liquidity to meet its liabilities when due, under both normal and stressed 
conditions, without incurring unacceptable losses or risking damage to the 
Group's reputation. Typically, the Group ensures that it has sufficient cash on 
demand to meet expected operational needs as they arise. 
 
12)       FAIR VALUE INFORMATION 
 
The Group's investment at the reporting date comprises an investment in the 
unlisted ordinary shares of Ray Alliance.  Ordinary shares that have no active 
market and whose fair value cannot be reliably measured are carried at cost, 
less impairment, if any. 
 
For  certain   of  the  Group's  financial  instruments,   not  carried  at 
fair  value,  including  cash  and  cash equivalents,  trade  receivables, 
 loans and other  receivables,  due to/from  related  parties, trade  payables 
and other payables  and accrued  expenses, the carrying  amounts  approximate 
fair value due to the immediate or short-term  nature of these financial 
instruments. 
 
The fair value hierarchy has the following levels: 
 
*     Level  1 inputs  are quoted  prices (unadjusted) in active  markets for 
identical  assets  or liabilities that the entity can access at the measurement 
 date. 
 
*     Level 2 inputs are inputs other than quoted prices included within Level 
1 that are observable for the asset or liability, either directly or 
indirectly. 
 
*     Level 3 inputs are unobservable inputs for the asset or liability. 
 
The level in the fair value hierarchy within which the fair value measurement 
is categorised in its entirety is determined on the basis of the lowest level 
of input that is significant to the fair value measurement in its entirety. 
 For this purpose, the significance of an input is assessed against the fair 
value measurement in its entirety.  If a fair value measurement uses observable 
inputs that require significant adjustment based on unobservable inputs, that 
measurement is a Level 3 measurement.  Assessing the significance of a 
particular input to the fair value measurement in its entirety requires 
judgment, considering factors specific to the asset or liability. 
 
The determination of what constitutes 'observable' requires significant 
judgment by the Group.  The Group considers observable data to be that market 
data that is readily available, regularly distributed or updated, reliable and 
verifiable, not proprietary, and provided by independent sources that are 
actively involved in the relevant market. 
 
Investments whose values are based on quoted market prices in active markets 
are therefore classified within Level 1. 
 
12)       FAIR VALUE INFORMATION (Cont'd) 
 
Financial instruments that trade in markets that are not considered to be 
active but are valued based on quoted market prices, dealer quotations or 
alternative pricing sources supported by observable inputs are classified 
within Level 2. As Level 2 investments include positions that are not traded in 
active markets and/or are subject to transfer restrictions, valuations may be 
adjusted to reflect illiquidity and/or non­ transferability, which are 
generally based on available market information. 
 
Investments classified within Level 3 have significant unobservable inputs, as 
they trade infrequently. The Group's Level 3 investment comprises an investment 
in unlisted shares valued at cost, since there was no information to estimate 
their fair values. The Group believes that the value stated as at 28 February 
2017 is most representative of its fair value. 
 
The following table analyses within the fair value hierarchy the Group's 
financial assets (by class) measured at fair value at the reporting date: 
 
                                         31-Aug-18                31-Aug-17 
 
Level 3 
 
Available-for-sale                          318,162                  359,926 
investment 
 
                                           $318,162                 $359,926 
 
The Group did not hold any investments under the Level 1 and Level 2 
hierarchies as at 31 August 2018 and 2017. 
 
There were no significant investments transferred between Levels 1, 2 and 3. 
 
13)       CAPITAL RISK MANAGEMENT 
 
The Group's objectives when managing capital are: 
 
*       to safeguard the Group's ability to continue as a going concern; and 
 
*       to provide adequate returns to its shareholders.In order to maintain  or balance  its overall  capital  structure to meet its 
objectives,  the Group  is continually monitoring  the level of share issuance 
 and any dividend declaration  and distributions  to shareholders  in the 
future. 
 
14)       COMPARATIVE INFORMATION 
 
Certain comparative figures have been reclassified to conform with the current 
year's presentation. 
 
 
 
END 
 

(END) Dow Jones Newswires

October 09, 2018 02:00 ET (06:00 GMT)