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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
COMPANY INFORMATION
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
CONTENTS
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors who served during the year were:
The auditors, Nyman Libson Paul LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board on
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
We have audited the financial statements of Phoenix Chinese News & Entertainment Limited (the 'Company') for the year ended 31 December 2024, which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We draw attention to note 2.2 in the financial statements, which indicates that the validity of the going concern
basis is dependent upon the continued financial support of the ultimate holding company.
The ultimate holding company has confirmed, that the current intention is for the Company to continue to be provided with appropriate financial support to enable it to continue as a going concern and for no demand for repayment of any amounts owed by the Company to any group companies be made until such time as the Company can repay them.
Notwithstanding this intention, however, there is no contractual certainty that such continuing support will be made available to the Company nor that any outstanding amounts owed will not be called for immediate repayment. As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Directors' Report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED (CONTINUED)
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following: • the nature of the industry and sector, control environment and business performance; • results of our enquiries of management about their own identification and assessment of the risks of irregularities; • any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to: - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; - the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to timing of revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation. In addition, we considered other laws and regulations that could have an effect on the Company and result in the imposition of financial or other penalties and litigation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. These limited procedures did not identify actual or suspected non-compliance. All matters in relation to non-compliance with laws and regulations and potential fraud risks were communicated to all members of the engagement team and we remained alert to any indications of non-compliance throughout the audit. Our procedures to respond to risks identified included the following: • reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED (CONTINUED)
• enquiring of management concerning actual and potential litigation and claims;
• assessing the appropriateness and where appropriate with third parties concerning actual and potential litigation and claims; • performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; • reading minutes of meetings of those charged with governance and correspondence with HMRC; • in addressing the risk of fraud through management override of controls, reviewing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
124 Finchley Road
NW3 5JS
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
REGISTERED NUMBER: 02557031
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 12 to 19 form part of these financial statements.
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Phoenix Chinese News & Entertainment Limited is a private company limited by shares and incorporated in England. The address of its registered office and principal place of business is Nucleus House, 2 Lower Mortlake Road, Richmond, TW9 2JA.
The company provides satellite television broadcasting services in Europe.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
The company shows net liabilities at the reporting date of £45,406,177 (2023: £42,623,002). The financial statements have been drawn up on a going concern basis which assumes that the company's ultimate holding company has committed to provide the necessary financial resources to the company in the next twelve months to finance its operations and enable it to meet its obligations as they fall due.
Should such financial support be withdrawn, the company may be unable to continue trading and adjustments would have to be made to reduce the value of assets to their recoverable amount, to provide for any further liabilities which may arise and to reclassify fixed assets and long term liabilities as current assets and liabilities. After reviewing the company and group forecasts and projections, the directors have a good expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
The presentational currency of the company is Sterling. The functional currencies of the company are Sterling and Hong Kong Dollar.
Transactions in currencies other than the functional currency of the company are recorded at the rate of exchange on the date the transaction occurred; for practical reasons, the company uses a rate that approximates the exchange rates at the dates of the transactions which is calculated as the average rate for the period. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. At the reporting date income and expenses for each period and assets and liabilities as at each reporting date are translated into the functional currency using the average rate for each period and the closing rate as at the reporting date respectively. All resulting differences are recognised in Other Comprehensive Income.
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Revenue mainly represents income from advertising sales. Advertising revenue is recognised when the relevant advertisements are broadcast over the respective advertising period as detailed in the contractual agreements the company has with its clients. Income is accrued or deferred at the reporting date for any contracts that span the period end.
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Intangible assets comprises cost in respect of the following:
Purchased programme rights These relate to purchased programme rights where the original licence period is more than one year. The programmes are initially recorded at cost. After recognition, under the cost model, the purchased programme rights are measured at cost less accumulated amortisation and any accumulated impairment losses. The cost of purchased programme rights are amortised over the licence period which is typically two years on a straight line basis. Cost of purchased programme rights with an original license period of less than one year are classified as current assets. Computer software Computer software is initially recorded at cost. After recognition, under the cost model, computer software is measured at cost less accumulated amortisation and any accumulated impairment losses. Computer software is amortised over 5 years on a straight line basis.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Financial liabilities and equity instruments Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. Basic financial liabilities, which include trade and other creditors and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs.
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The pension cost charge represents contributions payable by the company to the fund and amounted to £7,885 (2023: £7,651). Contributions totalling £3,576 (2023: £3,776) were payable to the fund at the reporting date and are included in creditors.
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PHOENIX CHINESE NEWS & ENTERTAINMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The immediate parent undertaking is PCNE Holdings Limited. PCNE Holdings Limited is incorporated in the British Virgin Islands and is a 70% owned subsidiary of Phoenix Media Investment (Holdings) Limited, a company incorporated in the Cayman Islands, with its shares listed on the Main Board of the Stock Exchange of Hong Kong Limited.
The ultimate parent undertaking and controlling party is Phoenix Media Investment (Holdings) Limited, which is the parent undertaking of the smallest and largest group to consolidate these financial statements. Copies of the annual report of Phoenix Media Investment (Holdings) Limited and its subsidiaries can be obtained from the company secretary at No. 2-6 Dai King street, Tai Po Industrial Estate, Tai Po, New Territories, Hong Kong.
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