For release: 07.00, 27 September 2022

Sealand Capital Galaxy Limited

("Sealand" or the "Company")

Unaudited Interim Results

Sealand Capital Galaxy Limited (LSE: SCGL) announces that it has today published its unaudited Interim Results for the six months ended 30 June 2022 with respect to the Company and its subsidiaries (the "Group").

Nelson Law, Executive Chairman of the Company commented:

"Our proven capabilities in acting as a bridge between European merchants, mainly of accessible but luxury items, and Chinese consumers, means that we remain excellently placed to continue benefitting from the growing popularity of ecommerce, particularly in China, and changing behaviors in the ecommerce ecosystem.  Our commercial and logistical systems and infrastructure are in place and are capable of adapting to rapid changes in ecommerce trends and behaviours.  Our strong ties with Tmall, and with merchants of high quality goods, will also contribute to our continued success."

-Ends-

Notes to Editors:

The Company's Shares are traded on the Official List of the London Stock Exchange's main market for listed securities under the ticker SCGL.

Further information on Sealand is available on its website  http://www.scg-ltd.com/ 

SEALAND CAPITAL GALAXY LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

Sealand Capital Galaxy Limited is a company acting as a special purpose acquisition company. The Group is engaged in digital marketing, mobile payment and other IT related business. Today it announces its results for the six months ended 30 June 2022.

Business Review

Since April 2020, the Covid-19 pandemic had a significant negative impact on the Group's business, but the Group is pleased to report that is has now turned a corner, notwithstanding the other new challenges facing virtually all economies, such as high energy prices, inflation, and slowing growth rates. 

The Group's presence on Tmall, via products for which it has exclusive licences in mainland China, Hong Kong, and Macau, continues to drive profits. These include Carter Beauty, Czech & Speake, Heath London, HH Simonsen, Inari, Living Garden Honey, Missguided Beauty, Silllk Aromas Beauty, and The Gruff Stuff. Tmall is a leading Chinese-language website for business-to-consumer online retail, allowing local Chinese and international businesses to sell brand name goods to consumers in greater China.

The Group is delighted to report that its ecommerce segment delivered a profit of £13,118. Although many shoppers have been eager to leave the house and return to stores where they are able, behaviour patterns have changed since the onset of the pandemic. Online shopping has come to serve a distinct purpose, and the Directors believe this trend will continue in the long term. Consumers can have whatever they want, whenever they want it, on-demand and digitally. Shoppers increasingly expect e-retailers to provide a sophisticated, personalised shopping experience, which the Group is successfully doing.

In addition, the way in which we present information to online shoppers mirrors consumers' increasing time conducting research. Simply put, we are providing more information for shoppers. There is now a greater emphasis on the shopper researching everything about a product in order to make an informed decision.

The type of goods that we offer to shoppers are also precisely the type of items we consider they are currently seeking online.  Just as we saw in the aftermath of the 2007 financial crisis, consumers appear to be putting very large purchases on hold, while continuing to spend on small luxuries such as upscale cosmetics brands, and other daily luxury items which they consider affordable. This trend is in line with the brands for which we have exclusive licences, and we expect to see this to continue into 2023.

The momentum for online shopping is now considered to be unstoppable and we continue to keep a strong focus on the evolution of digital buying. For example, livestream shopping (i.e. brands using livestreams to promote and sell products) is picking up speed, and we continue to monitor advances to ensure that our capabilities match the modern digital marketplace which consumers continue to expect.

Our work with influencers in China has also proven to be the correct strategy and continues to underpin our success. Younger generations find authenticity and trust in different places than older generations; predominantly they trust their peers and they trust influencers.

Financial Review

During the six months ended 30 June 2022, the loss attributable to ordinary shareholders was £226,910 (2021: £98,643), and the revenue for the period was £76,071 (2021: £39,184). The loss has widened because of an accrual of director's fees of £99,000 (the considerable majority of which have not been paid) and an issue of shares valued at £27,000 to settle some professional fees.

Prospects

Ecommerce continues to provide a lucrative and vital part of the future of our business. By understanding the trends of today and seeing where they are headed, we are preparing ourselves for continued future growth in ecommerce. An increasing number of people are engaging in online shopping, and more engagement means more potential customers with unique interests and needs. This creates many opportunities for merchants looking to engage with ecommerce for the first time or to reinvigorate their efforts, which will amplify our contact with merchants. Our proven capabilities in acting as a bridge between European merchants, mainly of accessible but luxury items, and Chinese consumers, means that we remain excellently placed to continue benefitting from the growing popularity of ecommerce, particularly in China, and changing behaviors in the ecommerce ecosystem.  Our commercial and logistical systems and infrastructure are in place and are capable of adapting to rapid changes in ecommerce trends and behaviours. Our strong ties with Tmall, and with merchants of high quality goods, will also contribute to our continued success.

Going Concern

As at 30 June 2022, the Group has cash and cash equivalent balances of £13,031 and net current liabilities and net liabilities of £1,258,755.

The directors' cash-flow projections for the forthcoming 12 months conclude there will be a need for additional cash resources. The directors are in discussions with some parties that may raise further equity and/or loans. There is no certainty that any such funds will be forthcoming or the price and other terms will be acceptable.

Directors

The following directors served during the six months ended 30 June 2022:

Mr Chung Lam Nelson Law   (Chairman and Chief Financial Officer)

Mr Geoffrey John Griggs         (Non-executive Director)

I would like to thank my colleagues for their continued perseverance and commitment towards reaching the Groups' objectives.

Chung Lam Nelson Law

Chairman

26 September 2022

SEALAND CAPITAL GALAXY LIMITED

PRINCIPAL RISKS AND UNCERTAINTIES

The Board regularly monitors exposure to risks and uncertainties that it considers key as set out below.

Covid-19

In common with a lot of other businesses based in China, an important challenge currently facing the Group is dealing with the COVID-19 pandemic, although there are encouraging signs that the effect of this is diminishing in the Group's main markets.

Going forward, the virus may however impact the Group's transactional revenue streams and this is carefully considered by the Board on a regular basis.

Acquisitions and investments

Part of the Group's strategy is to acquire and make strategic investments in complementary businesses as appropriate opportunities arise. The risks the Group may face should it acquire or invest in complementary businesses include:

-    Difficulties with the integration and assimilation of the acquired business;

-    Diversion of the attention of the Group's management team from other business concerns;

-    Loss of key employees of any acquired business;

-    Acquisitions or investments may require the Group to expend significant amounts of cash, which could result in the Group's inability to use the funds for other business purposes;

-    If the Group funds acquisitions through issuances of ordinary shares, the interests of its shareholders will be diluted, which may cause the market price of the ordinary shares to decline.

-    There is no guarantee that the Directors will be able to complete acquisitions of complementary companies on acceptable terms. Failure to do so over an extended period would limit the Directors' ability to carry out their strategy and would reduce the long-term prospects of the Group.

To mitigate the risks in respect of acquisitions and investments, the Group carries out due diligence and produces cash flow projections to ensure that any target is a suitable strategic fit and is financially sound. Staff are also trained to effectively manage the integration of acquisitions.

Competition

The majority of the Group's work for existing or new clients or on new projects is won competitively. The Group may face significant competition, including from larger companies which have greater capital and other resources and may result in some margin erosion. There is no assurance that the Group will be able to compete successfully in such a marketplace in the future.

Financial Risks

The Group financial risks including foreign exchange risk, interest rate risk, credit risk, liquidity risk and cash flow risk are carefully monitored by the Board.

Chung Lam Nelson Law

Chairman

26 September 2022

SEALAND CAPITAL GALAXY LIMITED

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors confirm that to the best of their knowledge:

(a)        the condensed set of financial statements, which has been prepared in accordance with IAS 34 "Interim Financial Reporting", gives a true and fair view of the assets, liabilities, financial position and loss of the Group as a whole as required by DTR 4.2.4R subject to the comment on the going concern position of the Group.

(b)        the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months of the year and a description of principal risks and uncertainties for the remaining six months of the year); and

(c)        the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

By order of the Board

Chung Lam Nelson Law

Chairman

26 September 2022

SEALAND CAPITAL GALAXY LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

FOR THE SIX MONTHS ENDED 30 JUNE 2022

* Less than 0.001 pence

The notes to the financial statements form an integral part of these financial statements.

SEALAND CAPITAL GALAXY LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2022

The notes to the financial statements form an integral part of these financial statements.

SEALAND CAPITAL GALAXY LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2022

The notes to the financial statements form an integral part of these financial statements.