Group 1 - The company, China Merchants China Fund, has signed an investment agreement to inject 30 million RMB into Shanghai JBD Display Technology Co., Ltd. as part of its Series B financing round [1] - JBD, established in October 2015, specializes in the research and manufacturing of MicroLED technology, with R&D departments and factories located in Hefei and Shanghai, China [1][2] - JBD is recognized as a leader in the mass production and application of MicroLED micro-display chips for augmented reality (AR) glasses, boasting industry-leading features such as high brightness, low power consumption, and compact size [2] Group 2 - The company anticipates strong demand for consumer-grade AR products in the future, positioning MicroLED as a promising display solution for lightweight AR glasses [2] - JBD's founding team has extensive experience in optoelectronic materials and devices, providing the company with a significant technological advantage in the MicroLED micro-display sector [2] - With ongoing product iterations and the commercialization of downstream AR terminals, JBD is expected to have a favorable development outlook as a leading player in the MicroLED micro-display field [2]

Financial Performance - The group's audited net asset value as of December 31, 2024, is $647.38 million, an increase of 16.03% from $557.94 million in 2023[9]. - The group's audited post-tax comprehensive profit for 2024 is $120.35 million, a significant increase of 2,000.35% from $5.73 million in the previous year[9]. - The company's net profit attributable to shareholders for the year ended December 31, 2024, was $120.35 million, a significant increase of $114.62 million or 2000.35% compared to the previous year[19]. - The fund's net income from financial assets for the year was $137.5 million, compared to a net loss of $9.03 million in the previous year[19]. - The total net profit for 2024 reached $120,351,000, a significant increase from $5,726,000 in 2023, marking a year-over-year growth of approximately 2011%[129]. Investment Activities - The total value of the group's investment projects at the end of 2024 is $775.65 million, representing 96.13% of the total assets, up from $683.31 million in 2023[11]. - The group invested a total of $5.80 million in two projects in 2024, including $2.19 million in China International Capital Corporation and $3.61 million in iFlytek Medical Technology Co., Ltd.[12]. - The fund's total investment value as of December 31, 2024, was $775.65 million, with 58.71% allocated to financial services, 6.37% to cultural media and consumption, and 29.65% to information technology[28]. - The fund has approved a total of 69 investment projects with an approved investment amount of 4.27 billion RMB as of December 31, 2024[84]. - The fund aims to invest in quality mature projects while also exploring opportunities in emerging industries[108]. Dividend Policy - The group recommends a final dividend of $0.04 per share for 2024, maintaining the total annual dividend at $0.08 per share[9]. - The company declared an interim dividend of $0.04 per share for the year 2024, totaling $6,093,321, compared to no dividend in 2023[137]. - The proposed final dividend for 2024 is also $0.04 per share, totaling $6,093,321, down from $0.08 per share in 2023, which included a special dividend[137]. - The company aims to maintain a stable dividend policy while balancing business growth investments[139]. Economic Outlook - The World Bank projects global economic growth of 2.7% for 2025, with China's GDP expected to grow by 5.0%[10][14]. - The group anticipates challenges and opportunities in 2025, with a focus on supporting consumption recovery and infrastructure investment[14]. - China's economic performance is expected to continue recovering, with a focus on stabilizing growth, employment, and prices in 2025[107]. - Key tasks for 2025 include boosting consumption, enhancing investment efficiency, and promoting technological innovation to develop a modern industrial system[107]. Market Performance - The Shanghai Composite Index increased by 12.67% to close at 3,352 points by the end of 2024, while the Hang Seng Index rose by 17.67% to 20,060 points[11]. - The fund is monitoring foreign exchange risks, particularly due to a 1.49% depreciation of the RMB against the USD in 2024[25]. Corporate Governance - The company has established a domestic fund management platform, Shanghai Hanlun Private Fund Management Co., Ltd., to cater to domestic institutional investors[158]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[198]. - The independent non-executive directors confirmed that the related transactions were conducted on fair and reasonable terms in the overall interest of the shareholders[192]. Investment Risks - The fund faces risks from market competition as more investment firms enter the private equity space, leading to increased competition for potential investment targets[112]. - Operational risks include the complexities of evaluating and selecting investment projects, which can impact investment time costs and returns[113]. - The fund cannot acquire more than 30% voting rights in any invested company, limiting its control over management decisions[113]. Fund Management - The management fee paid or payable to the investment manager for the year ending December 31, 2024, is $10,673,598, compared to $10,458,859 in 2023[191]. - A temporary investment management agreement was signed on December 17, 2024, with a management fee of HKD 9,900,000 (or equivalent in USD or RMB) effective from January 1, 2025[195]. - The investment manager is responsible for all investment and management duties related to the company's operations[200].

Financial Performance - The company reported a net profit of $120,351,314 for the year ending December 31, 2024, compared to a profit of $5,726,311 in 2023, representing a significant increase[3]. - Total comprehensive income for the year was $107,718,079, a turnaround from a loss of $2,967,354 in the previous year[3]. - The company's earnings per share increased to $0.790 from $0.038 in 2023, indicating strong growth in profitability[3]. - The net profit from the financial services segment was $113,177,547 in 2024, compared to a loss of $48,579,512 in 2023, indicating a significant turnaround[16]. - The company reported a pre-tax profit of $148,335,878 for the year ending December 31, 2024, compared to a pre-tax loss of $1,094,022 in 2023[16]. - The company's net profit attributable to shareholders for the year ended December 31, 2024, was $120.35 million, a significant increase of $114.62 million or 2,000.35% compared to the previous year's profit of $5.73 million, primarily due to a substantial increase in the fair value gains of financial assets[25]. Assets and Liabilities - The fair value of financial assets measured at fair value through profit or loss rose to $770,688,567 in 2024, up from $599,257,512 in 2023[4]. - Cash and cash equivalents increased significantly to $30,946,711 from $8,627,649 year-over-year[4]. - The company's total assets, after deducting current liabilities, increased to $772,980,664 from $664,831,444[4]. - Total liabilities increased to $159,416,276 in 2024, up from $134,119,984 in 2023, indicating a rise in financial obligations[18]. - The company's net asset value per share improved to $4.250 from $3.663 in 2023, indicating enhanced shareholder value[4]. - The company’s net asset value per share increased to $647,377,905 in 2024, compared to $557,939,788 in 2023[22]. Investment Activities - The company made a strategic investment of HKD 17.06 million (approximately $2.19 million) in China International Capital Corporation, acquiring 2.12 million shares at an average price of HKD 8.05 per share, representing 0.044% of the total issued share capital[26]. - The company also entered into a cornerstone investment agreement for iFlytek Medical Technology Co., Ltd., investing HKD 28 million (approximately $3.61 million) for H shares at a price of HKD 82.80, which represents 0.28% of the total issued share capital post-offering[26]. - The total investment value of the company as of December 31, 2024, was $775.65 million, with the distribution being $473.72 million in financial services (58.71%), $51.37 million in cultural media and consumption (6.37%), and $239.34 million in information technology (29.65%)[33]. Income and Dividends - Investment income decreased slightly to $17,788,322 from $19,117,038 in the previous year, reflecting changes in market conditions[3]. - The company declared an interim dividend of $0.04 per share in 2024, totaling $6,093,321, compared to no dividend in 2023[23]. - The dividend for the full year is projected to remain at $0.08 per share, consistent with 2023, totaling $12,186,641[23]. - The company's total revenue from financial assets was significantly impacted by a decrease in dividend income, which fell to $17,179,574 in 2024 from $18,794,805 in 2023[12]. Operational Insights - The company experienced a net unrealized gain of $102,269,061 on listed investments, a recovery from a loss of $62,745,077 in 2023[11]. - The company reported a significant increase in administrative expenses to $12,112,055 from $11,479,636, reflecting ongoing operational investments[3]. - The company has no bank loans or liabilities as of December 31, 2024, maintaining a debt-free status[29][30]. - The company is monitoring foreign exchange risks, particularly due to a 1.49% depreciation of the RMB against the USD in 2024, and is considering hedging strategies as necessary[31]. Future Outlook - The outlook for 2025 indicates stable economic growth in China, with expectations for continued recovery in the operating performance of the company's investment projects primarily based in China[34]. - The central economic work conference in December 2024 outlined key tasks for 2025, including boosting consumption, enhancing investment efficiency, and promoting technological innovation to drive new productivity[35]. - The company will continue to actively seek potential investment projects, focusing on digital finance, artificial intelligence, cultural tourism, and healthcare industries[38]. - The company anticipates significant policy support and capital market attention for sectors like artificial intelligence and new infrastructure construction[37]. - The company aims to enhance regional development vitality and promote urban-rural integration[37]. - The company is committed to preventing systemic risks and stabilizing the real estate market[37]. - The company will continue to explore opportunities to replace existing assets to increase shareholder value[38]. Corporate Governance - The company emphasizes maintaining high levels of corporate governance to protect shareholder interests and enhance investor confidence[39]. - The company has complied with all relevant corporate governance codes, except for certain provisions[39]. - The investment portfolio and company affairs are managed by an investment manager, with no salaried employees[40]. - The company has not purchased, sold, or redeemed any of its shares during the year[43]. - The company’s financial statements for the year ending December 31, 2024, have been verified by KPMG[44].

浙江杭州即将新增一家深主板上市公司。 3月31日，信凯科技（001335.SZ）即将申购，发行价格为12.8元/股，对应的发行市盈率为14.38倍。 近年来，A股市场新股打新赚钱效应较好，截至3月27日，2025年登陆A股市场的26家新股上市首日全部收涨， 且首日平均涨幅超过246%。在这种背景下，对于信凯科技这种优质新股，值得积极申购。 一、得益于下游需求增长，公司2024年营收同比上升32.55% 信凯科技成立于1996年，来自浙江杭州，从事颜料行业近30年，是全球有机颜料行业的重要供应商之一。 公司主要从事有机颜料等着色剂的产品开发、销售及服务，拥有450多个规格的颜料产品，主要产品包括偶氮 颜料、杂环颜料、酞菁颜料等。信凯科技的颜料产品具有耐光、耐热、耐气候、耐迁移、环境友好和安全性能 高的特点，可应用于油墨、涂料、塑料和特种化工品着色，最终广泛应用于包装印刷、食品接触包装印刷、数 字印刷、出版印刷、汽车涂料、建筑涂料、工业涂料、粉末涂料、塑料日用品、纺织印花等领域。 得益于全球化的战略布局及积累的优质海外客户资源，公司主要销售区域及主要客户收入均实现小幅增长，信 凯科技预计今年一季度收入及净利润仍将 ...

[Financial Report](index=3&type=section&id=Performance) [Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The Group's H1 2024 profit attributable to shareholders slightly decreased to $59.50 million, while net asset value per share grew to $3.954, and cash and cash equivalents significantly increased to $42.32 million [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group reported a profit for the period of $59.50 million, a 6.6% decrease from $63.68 million in the prior period, primarily due to a reduction in net gains from financial assets at fair value through profit or loss Key Profit or Loss Data for H1 2024 | Metric | For the 6 Months Ended June 30, 2024 (USD) | For the 6 Months Ended June 30, 2023 (USD) | | :--- | :--- | :--- | | Net gains from financial assets at fair value through profit or loss | 75,152,945 | 80,411,139 | | Profit before tax | 72,310,340 | 76,986,060 | | Profit for the period | 59,503,492 | 63,682,960 | | Basic earnings per share | 0.391 | 0.418 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's net assets increased by 8.0% to $602 million from $558 million at year-end 2023, with net asset value per share rising to $3.954, driven primarily by the fair value increase of non-current financial assets Key Balance Sheet Data as of June 30, 2024 | Metric | June 30, 2024 (USD) | December 31, 2023 (USD) | | :--- | :--- | :--- | | Non-current financial assets | 713,995,664 | 599,257,512 | | Net assets | 602,363,456 | 557,939,788 | | Net asset value per share | 3.954 | 3.663 | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The Group's shareholders' equity increased from $558 million at the beginning of the period to $602 million at period-end, primarily due to the $59.50 million profit for the period, partially offset by exchange differences of $2.89 million and 2023 dividend payments of $12.19 million - Shareholders' equity changes were primarily influenced by profit for the period, exchange differences, and dividend distributions, with total comprehensive income for the period at **$56.61 million**[8](index=8&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash and cash equivalents increased by $33.79 million during the period, reaching $42.32 million at period-end, significantly higher than the $8.63 million at the beginning of the year, primarily due to $38.73 million from the disposal of financial assets at fair value through profit or loss H1 2024 Cash Flow Overview | Metric | For the 6 Months Ended June 30, 2024 (USD) | For the 6 Months Ended June 30, 2023 (USD) | | :--- | :--- | :--- | | Net cash generated from operating activities | 33,790,221 | (5,997,767) | | Proceeds from disposal of financial assets | 38,734,044 | 828,954 | | Cash and cash equivalents at end of period | 42,316,068 | 19,211,903 | [Notes to the Financial Report](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes clarify that current accounting policies are consistent with the prior year, new accounting standards had no significant impact, and segment information identifies financial services, culture, media, and consumer, and information technology as key reporting segments, with financial services contributing most of the profit, alongside details on dividend distribution and related party transactions with the investment manager - New accounting standard amendments adopted during the period had no significant impact on the Group's financial position or performance[15](index=15&type=chunk) H1 2024 Segment Profit and Assets | Segment | Segment Profit (Million USD) | Segment Assets (Million USD) | | :--- | :--- | :--- | | Financial Services | 60.4 | 438.3 | | Culture, Media & Consumer | 8.3 | 47.4 | | Information Technology | 12.4 | 220.6 | | Others | (3.1) | 8.9 | - The Board resolved to declare an interim dividend of **4 cents per share** for 2024, and the 2023 final and special dividends totaling **8 cents per share** (totaling **$12.19 million**) were paid in July 2024[45](index=45&type=chunk) - The Group paid **$5.09 million** in management fees to the investment manager and has financial liabilities under sub-participation agreements with related parties, including company directors[54](index=54&type=chunk) [Review Report](index=22&type=section&id=Review%20Report) [Auditor's Review Report](index=22&type=section&id=To%20the%20Board%20of%20Directors%20of%20China%20Merchants%20China%20Funds%20Limited) Independent auditor KPMG has reviewed this interim financial report in accordance with Hong Kong Standards on Review Engagements, concluding that they have not noted anything that causes them to believe the interim financial report is not prepared in all material respects in accordance with HKAS 34 "Interim Financial Reporting" - KPMG issued an unmodified review conclusion, stating that the interim financial report complies with relevant accounting standards in all material respects[59](index=59&type=chunk) [Investment Manager's Discussion and Analysis](index=23&type=section&id=Investment%20Manager%27s%20Discussion%20and%20Analysis) [Overall Performance and Financial Position](index=23&type=section&id=Overall%20Performance) In H1 2024, profit attributable to shareholders decreased by 6.56% to $59.50 million due to slower financial asset appreciation, while net asset value per share increased to $3.954, with cash and equivalents significantly rising to $42.32 million primarily from partial disposal of China UnionPay equity H1 2024 Performance Overview | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Profit Attributable to Shareholders | $59.50 million | $63.68 million (prior period) | | Net Asset Value | $602 million | $558 million | | Net Asset Value Per Share | $3.954 | $3.663 | - Cash and cash equivalents significantly increased by **390.38%** to **$42.32 million** from **$8.63 million** at the end of last year, primarily due to the disposal of a portion of China UnionPay Co., Ltd. equity[63](index=63&type=chunk) - In H1 2024, the Fund did not enter into any new investment projects nor fully exit any existing ones[61](index=61&type=chunk) [Investment Portfolio Overview](index=24&type=section&id=Investment%20Portfolio) As of June 30, 2024, the Fund's total investment value was $715 million, with the portfolio primarily concentrated in financial services (57.85%) and information technology (29.10%), and key holdings including China Merchants Bank, China Chengxin Trust, iFLYTEK, iFLYTEK Healthcare, and Insta360 Investment Portfolio Sector Distribution (June 30, 2024) | Sector | Investment Value (Million USD) | Percentage of Total Assets (%) | | :--- | :--- | :--- | | Financial Services | 438.3 | 57.85% | | Information Technology | 220.6 | 29.10% | | Culture, Media & Consumer | 47.4 | 6.26% | | Others | 8.9 | 1.18% | - The Fund's top ten investment projects include China Merchants Bank, China Chengxin Trust, iFLYTEK, iFLYTEK Healthcare, Insta360, NBA China, China UnionPay, Pony.ai, Anhui Kexun Venture Capital Fund, and China Construction Investment Leasing[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk) [Review of Key Investment Projects](index=27&type=section&id=Investment%20Review) This section reviews the progress of key investment projects, including China Merchants Bank's improved ranking and China Chengxin Trust's business transformation in financial services, iFLYTEK's losses due to AI model investments, Insta360's 8K camera launch, Pony.ai's US listing filing, and Moonshot AI's new financing and user growth in information technology, alongside iFLYTEK Healthcare's Hong Kong IPO application and Immuno Cure BioTech's FDA fast track designation in healthcare - **China Merchants Bank**: In July 2024, it entered the top 10 for the first time in The Banker's "Top 1000 World Banks" ranking[71](index=71&type=chunk) - **iFLYTEK**: Swung from profit to loss in H1 2024, recording a net loss of **RMB 401 million**, primarily due to new investments exceeding **RMB 650 million** in general artificial intelligence cognitive large models[83](index=83&type=chunk) - **Pony.ai**: The China Securities Regulatory Commission has issued its overseas issuance and listing filing notice, with plans to list on Nasdaq or the New York Stock Exchange in the United States[85](index=85&type=chunk) - **iFLYTEK Healthcare**: Controlling shareholder iFLYTEK plans to spin it off for listing in Hong Kong, having submitted an IPO application to the HKEX on January 31, 2024[89](index=89&type=chunk) - **Moonshot AI**: Completed multiple rounds of new financing, diluting the Fund's shareholding to **0.67%**, with its Kimi AI Assistant APP reaching **4.59 million** monthly active users[95](index=95&type=chunk)[96](index=96&type=chunk) [Business Outlook](index=41&type=section&id=Business%20Outlook) For the second half, the investment manager anticipates China's economy to achieve its growth target of around 5.0%, providing a stable operating environment for investments, and the Fund will continue its strategy focusing on digital finance, AI-driven emerging technologies, the broader cultural industry (including cultural tourism), and the healthcare sector, while seeking asset replacement opportunities to create shareholder value - China's economic growth rate is expected to achieve its target of around **5.0%** in 2024, leading to continued recovery in the operating performance of the Fund's investment projects[102](index=102&type=chunk) - The Fund's future investment focus will be on the financial industry, primarily digital finance; emerging technology industries, primarily artificial intelligence; the broader cultural industry, primarily cultural tourism; and the healthcare industry, primarily medical health[102](index=102&type=chunk) [Sub-Participation Investment Scheme](index=42&type=section&id=Sub-Participation%20Investment%20Scheme) To align management and fund interests, the Fund implemented a sub-participation investment scheme allowing directors and investment manager personnel to proportionally participate in new investment projects, with the report detailing its operation, participation limits, and specific contributions by participants, including several directors, as of period-end - This scheme aims to align the interests of management and relevant personnel with those of the Fund when undertaking new investment projects, with participants sharing investment returns and bearing losses proportionally[104](index=104&type=chunk) Participation Amounts of Certain Directors in Selected Projects | Project Name | Mr. Wang Xiaoding (USD) | Mr. Xie Rujie (USD) | | :--- | :--- | :--- | | Pony.ai | 7,650 | 2,550 | | Insta360 | 3,830 | 1,280 | | iFLYTEK Healthcare | 20,540 | 1,280 | | Flexiv | 20,640 | 1,290 | | Moonshot AI | 1,280 | Not applicable | [Other Information](index=47&type=section&id=Other%20Information) [Dividends](index=47&type=section&id=Interim%20Dividend) The Board resolved to declare an interim dividend of 4 cents per share (or HKD 0.312) for the six months ended June 30, 2024, payable on November 8, 2024, in addition to the 2023 final and special dividends (totaling 8 cents per share) paid on July 26, 2024 Dividend Information | Dividend Type | Amount Per Share (Cents) | Payment Date | | :--- | :--- | :--- | | 2024 Interim Dividend | 4 | November 8, 2024 | | 2023 Final Dividend | 7 | July 26, 2024 | | 2023 Special Dividend | 1 | July 26, 2024 | [Shareholders and Shareholding Structure](index=48&type=section&id=Major%20Shareholders) As of June 30, 2024, China Merchants Group Limited, through its controlled entities, held 27.59% of the Company's shares, making it the largest shareholder, with other major shareholders including Lazard Asset Management LLC (15.04%) and entities related to Mr. Chen Jian and Argyle Street Management (totaling 9.21%), and only Mr. Wang Xiaoding among the directors held a personal shareholding of 0.14% Major Shareholder Interests (June 30, 2024) | Shareholder Name | Shareholding Percentage | | :--- | :--- | | China Merchants Group Limited (and its associates) | 27.59% | | Lazard Asset Management LLC | 15.04% | | Chen Jian (and his associates) | 9.21% | - Director Mr. Wang Xiaoding beneficially owns **212,000 ordinary shares**, representing **0.14%** of the total issued shares[117](index=117&type=chunk) [Corporate Governance](index=50&type=section&id=Corporate%20Governance) During the reporting period, the Company complied with all Corporate Governance Code provisions in the Listing Rules, with the sole exception of not establishing a remuneration committee, which was exempted by the Hong Kong Stock Exchange, and this interim report has been reviewed by the Company's Audit Committee and KPMG - The Company has complied with all code provisions of the Corporate Governance Code, except for not establishing a remuneration committee due to an exemption granted by the Stock Exchange[123](index=123&type=chunk) - All Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period[125](index=125&type=chunk)

Financial Performance - The company's total comprehensive income for the period was $56,610,309, compared to $43,159,651 in the previous period, representing an increase of approximately 31%[2] - The profit attributable to shareholders for the current period was $59,503,492, down from $63,682,960, indicating a decrease of about 6.8%[3] - The net gain from financial assets measured at fair value through profit or loss was $75,152,945, a decrease from $80,411,139, reflecting a decline of approximately 6.5%[7] - Investment income for the period was $1,931,659, which is an increase of approximately 80.4% compared to $1,072,112 in the previous period[8] - The basic earnings per share for the current period was $0.391, down from $0.418, indicating a decrease of about 6.5%[2] - The company reported a pre-tax profit of $72,310,340, down from $76,986,060, which is a decrease of about 6.9%[9] - The total comprehensive income for the period was $59,503,492, down from $63,682,960 in the previous year, showing a decline of approximately 6.8%[21] - The company reported a pre-tax profit of $76,986,060 for the period, which reflects the overall profitability of the business operations[18] Assets and Liabilities - The total assets, after deducting current liabilities, increased to $720,667,516 from $664,831,444, marking a growth of about 8.4%[4] - The net asset value attributable to shareholders rose to $602,363,456 from $557,939,788, representing an increase of approximately 7.9%[4] - The company’s total liabilities decreased from $27,228,328 to $37,035,913, reflecting a reduction of approximately 36.1%[4] - The total assets of the financial services segment increased to $438,291,288 from $380,136,922, representing a growth of approximately 15.3% year-over-year[14] - The total liabilities for the financial services segment decreased slightly to $28,413 from $30,682, indicating a reduction of about 7.4%[14] - The total assets of the company increased to $757,703,429 from $692,059,772, representing a growth of approximately 9.4% year-over-year[14] - The net asset value as of June 30, 2024, was $602.36 million, an increase from $557.94 million as of December 31, 2023, with a net asset value per share of $3.954[24] Cash and Investments - The cash and cash equivalents increased significantly from $8,627,649 to $42,316,068, indicating a growth of approximately 390%[4] - The cash and cash equivalents increased by 390.38% to $42.32 million from $8.63 million at the end of the previous year[26] - The total investment value as of June 30, 2024, was $715.18 million, with financial services accounting for $438.29 million (57.85% of total assets)[29] Dividends and Reserves - The company declared an interim dividend of $0.04 per share for the six months ending June 30, 2024, totaling $6,093,321, compared to no dividend for the same period last year[22] - The total reserves decreased by $2,893,183 during the period, compared to a larger decrease of $20,523,309 in the previous year[21] Foreign Exchange and Economic Outlook - The company incurred a foreign exchange loss of $571,066, which was higher than the loss of $164,554 in the previous year, indicating increased volatility in currency exchange rates[17] - The global economic growth rate for 2024 is projected at 2.6%, with China's economic growth expected to meet the target of around 5.0%[30] Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code as per the Stock Exchange Rules, except for the establishment of a remuneration committee[33] - All directors confirmed compliance with the standards set out in the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period[34] - The unaudited financial data for the six months ending June 30, 2024, has been reviewed by KPMG in accordance with the Hong Kong Institute of Certified Public Accountants' standards[33] Future Plans - The company plans to focus on investment opportunities in digital finance, emerging technologies, cultural tourism, and healthcare sectors[31] - The company did not enter into any new investment projects or fully exit any existing projects during the first half of 2024[25]

Investment Activities - In 2023, the company completed investments in two new direct investment projects in the information technology sector, totaling $17.02 million[1]. - The company anticipates that investment growth in China will rebound in 2024 due to proactive government measures, including the issuance of additional bonds for infrastructure projects[2]. - The fund signed a preferred share purchase agreement with Moonshot AI Ltd., committing to invest $10 million for a 1.29% equity stake in the company, which focuses on developing universal multimodal large models and consumer applications[41]. - The fund agreed to invest RMB 50 million (approximately $7.02 million) in Hanwei Technology, acquiring a 6.42% equity stake[59]. - The fund's total investment value as of December 31, 2023, was $68,331 million, with financial services accounting for $38,013 million (54.93%) and information technology for $24,903 million (36.00%) of the total[63]. Financial Performance - The net profit attributable to shareholders for the year ended December 31, 2023, was $5.73 million, a significant turnaround from a net loss of $153.17 million in the previous year, primarily due to a slowdown in the decline of financial assets' fair value and a substantial increase in investment income[34]. - Investment income increased by 28.75% to $19.12 million in 2023, compared to $14.85 million in 2022, mainly due to a significant rise in dividend income from investment projects[40]. - The cash and cash equivalents balance decreased by 66.14% to $8.63 million from $25.49 million at the end of the previous year, representing 1.25% of total assets, primarily due to project investment payments[29]. - The net asset value as of December 31, 2023, was $557.94 million, down 2.38% from $571.57 million at the end of 2022, with a net asset value per share of $3.663, also down 2.38% from $3.752[34]. - The overall fair value of investment projects decreased due to a decline in the fair value of investments and a depreciation of the Renminbi exchange rate[36]. Market Conditions - The World Bank projects a global growth rate of 2.4% in 2024, marking the third consecutive year of slowdown[2]. - The global economic growth for 2023 is estimated at 2.6%, with China's GDP growth at 5.2%, driven by steady industrial production and a rapid recovery in service consumption[35]. - The Shanghai Composite Index closed at 2,975 points at the end of 2023, down 3.69% from the end of 2022[23]. - The Hang Seng Index closed at 17,047 points at the end of 2023, down 13.82% from the end of 2022[23]. Shareholder Returns - The company plans to distribute a final dividend of $0.07 per share for the fiscal year 2023, an increase of 14.29% compared to the previous year[22]. - The company plans to implement a stable dividend policy, typically distributing final dividends in cash once a year in July[197]. - The company will consider special dividends based on ideal returns from investment exits, taking into account the investment portfolio, opportunities, and commitments[197]. Risk Management and Compliance - The company has implemented measures to enhance its risk management framework and procedures[97]. - The board of directors conducted an annual review of the effectiveness of the risk management and internal control systems[99]. - The company adheres to the guidelines set by the Hong Kong Securities and Futures Commission regarding insider information disclosure[122]. - The company has implemented measures to ensure compliance with environmental regulations, reporting no non-compliance issues related to air and noise pollution laws[153]. Environmental, Social, and Governance (ESG) Initiatives - The report period covers the year ending December 31, 2023, focusing on environmental, social, and governance (ESG) issues[110]. - The company has established a framework for continuous management and improvement of its ESG policies and performance[113]. - The governance structure for ESG issues includes a dedicated team led by an executive director, supported by senior staff from various functions[114]. - The company has identified 11 key environmental, social, and governance issues as part of its sustainability strategy[140]. - The company has integrated environmental, social, and governance performance as a key performance indicator in its investment decision-making process[163]. Employee Engagement and Training - The percentage of trained employees increased to 61.11% in 2023 from 38.89% in 2022[130]. - The average training hours per employee rose to 14.95 hours in 2023 from 12.39 hours in 2022[130]. - The company provides annual health check plans for all employees to ensure their well-being[147]. - The company has established a functional communication system to enhance effective communication among employees[154]. Sustainability Goals - The company aims to reduce paper consumption density by 5% by 2025 compared to 2020 levels[144]. - The company is committed to achieving zero plastic bottle consumption by 2025[144]. - The company aims to promote zero waste office practices and has set specific sustainability goals, including reducing paper usage and increasing electronic documentation[174][175]. - The company has set a target to consider energy-saving policies as a criterion for leasing new office spaces by 2025[158]. - The company aims to reduce water resource consumption and has set a target to consider water-saving policies for new office leases by 2025[166].

Dividends - The board proposed a final dividend of $0.07 per share or HKD 0.546 for the year ending December 31, 2023, unchanged from 2022, and a special dividend of $0.01 per share or HKD 0.078, which was not offered in 2022 [3]. - The total annual dividend will be $0.08 per share or HKD 0.624, an increase from $0.07 per share in 2022, with a total payout of $12,186,641 compared to $10,663,311 in 2022 [3]. - Shareholders can choose to receive dividends in either USD or HKD, with further details to be announced at an appropriate time [3].

Financial Performance - The net loss from financial assets at fair value through profit or loss for 2023 was $9,028,514, a significant improvement compared to a loss of $199,780,049 in 2022[12]. - Investment income for 2023 increased to $19,117,038, up from $14,847,528 in 2022, reflecting a growth of approximately 28.8%[12]. - The pre-tax loss for the year was $1,094,022, a substantial improvement from a pre-tax loss of $196,387,262 in the previous year[12]. - The company reported a profit of $5,726,311 for the year, contrasting with a loss of $153,170,419 in 2022[12]. - The total comprehensive loss for the year was $2,967,354, compared to a comprehensive loss of $212,800,388 in 2022[12]. - The basic earnings per share for 2023 were $0.038, a recovery from a loss per share of $1.005 in the previous year[12]. - The company reported a net profit attributable to shareholders of $5.73 million for the year ended December 31, 2023, compared to a net loss of $153.17 million in the previous year, marking a significant turnaround[61]. - Investment income increased by 28.75% to $19.12 million in 2023, up from $14.85 million in 2022, primarily due to a substantial rise in dividend income from investment projects[62]. Assets and Liabilities - Cash and cash equivalents decreased to $8,627,649 in 2023 from $25,489,216 in 2022, indicating a decline of approximately 66.1%[2]. - The net asset value per share as of December 31, 2023, was $3.663, down from $3.752 in 2022[2]. - The total liabilities decreased to $106,891,656 in 2023 from $117,628,328 in 2022, reflecting a reduction of about 9.5%[2]. - As of December 31, 2023, the company's total assets amounted to $692.06 million, a slight decrease from $715.62 million in 2022[54]. - The company's net asset value per share was $3.663 as of December 31, 2023, down from $3.752 in the previous year[61]. Investments - The company invested RMB 50 million (approximately $7.02 million) in Beijing Hanwei Chuangxin Electronics Technology Co., acquiring a 6.42% equity stake[35]. - The company signed a preferred share purchase agreement with Moonshot AI Ltd., investing $10 million for a 1.29% equity stake in the company, which focuses on developing general multimodal models and consumer applications[64]. - The company’s total investment value as of December 31, 2023, was $68.33 million, with allocations of $38.01 million in financial services, $4.21 million in cultural media and consumption, and $24.90 million in information technology[79]. - The company plans to focus on investment opportunities in digital finance, emerging technologies centered on artificial intelligence, and the cultural tourism and healthcare sectors[71]. Dividends - The proposed final dividend for the year is $0.07 per share, totaling $12.19 million, an increase from $10.66 million in the previous year[32]. - The company reported a dividend yield of 8 cents per share for the full year, up from 7 cents in 2022[32]. Compliance and Governance - The financial statements for the year ending December 31, 2023, have been audited by Deloitte, confirming the accuracy of the reported figures[85]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, ensuring compliance by all directors[84]. - The company does not have a remuneration committee, as its executive directors and senior management do not receive any director's fees or remuneration from the company[83]. Economic Outlook - The company anticipates continued positive performance from its investments in China, supported by macroeconomic stability and structural adjustments[41]. - The central economic work conference in December 2023 outlined nine key tasks for China's economic development in 2024, focusing on high-quality growth and technological innovation[81]. - Emphasis on expanding domestic demand, stimulating potential consumption, and creating a virtuous cycle between consumption and investment[81]. - Continued support for artificial intelligence and new infrastructure construction, indicating significant investment potential in these areas[81]. - The company plans to deepen reforms in key areas and expand high-level opening-up to foster new trade dynamics[81]. - The focus on ecological civilization and green low-carbon development is part of the strategic outlook for the future[81]. - The company aims to effectively prevent and mitigate risks in key areas, including real estate and local debt[81]. Other Financial Information - The company has not adopted any new accounting standards that would significantly impact its financial statements in the foreseeable future[19]. - The company completed the exit from one listed investment project during the year[37]. - The company had no bank loans as of December 31, 2023, consistent with the previous year[66]. - The company has not purchased, sold, or redeemed any of its shares during the year[85]. - The company experienced a 1.70% depreciation of the Renminbi against the US dollar in 2023, impacting its holdings of Renminbi assets[67]. - The total administrative expenses for 2023 were $11,479,636, slightly decreased from $11,573,620 in 2022[12].

Financial Performance - The company reported a total income of $81,565,305 for the six months ended June 30, 2023, compared to a loss of $25,122,304 for the same period in 2022[22]. - For the six months ended June 30, 2023, the company reported a pre-tax profit of $76,986,060, a significant recovery from a pre-tax loss of $90,204,275 in the same period of 2022[34]. - The total comprehensive income for the period was $43,159,651, compared to a comprehensive loss of $104,792,321 in the prior year[34]. - The company's net profit attributable to shareholders for the six months ended June 30, 2023, was $63.68 million, a turnaround from a loss of $70.99 million in the same period last year[93]. - Basic earnings per share for the first half of 2023 were $0.418, a recovery from a loss of $0.466 per share in the same period of 2022[56]. Assets and Liabilities - As of June 30, 2023, the total assets amounted to $730,812,765, an increase from $689,198,781 as of December 31, 2022, representing a growth of approximately 6%[12]. - The total liabilities decreased to $33,181,756 from $26,420,491, indicating a reduction of approximately 25.5%[12]. - The company's total liabilities increased to $159,927,728 as of June 30, 2023, compared to $144,048,819 at the end of 2022[33]. - The total other payables decreased to $22,067,378 from $24,695,000, a reduction of approximately 10.6%[12]. - The total deferred tax liabilities as of June 30, 2023, were $125,564,392, which includes $106,424,603 related to unrealized capital gains on securities investments[78]. Shareholder Value - The net asset value attributable to shareholders increased to $604,066,793 from $571,570,453, reflecting a rise of about 5.7%[12]. - The net asset value per share increased to $3.965 from $3.752, representing a growth of about 5.6%[12]. - The company declared a dividend payable of $10,663,311 for the period, which was not present in the previous year[12]. - The company declared a dividend of $10,663,311 for the year ended December 31, 2022, which was approved by shareholders and paid in cash on July 27, 2023[76]. Investment Activities - The company signed an investment agreement on July 7, 2023, to invest RMB 50 million ($7.02 million) in Beijing Hanwei Chuangxin Electronics Technology Co., acquiring a 6.42% equity stake[111]. - The company held 55.2 million shares of China Merchants Bank, representing 0.219% of its total issued share capital, with an investment cost of RMB 154.61 million ($19.79 million)[106]. - The company completed an exit from a listed investment project during the reporting period[96]. - The fund has invested a total of RMB 110 million in iFlytek Medical, holding a 3.514% equity interest as of June 30, 2023[139]. - The fund has received a total cash distribution of RMB 46.96 million from Kexin Venture Capital Fund as of June 30, 2023[134]. Cash Flow and Management - The cash and cash equivalents decreased to $19,211,903 from $25,489,216, a decline of about 24.6%[12]. - The cash and cash equivalents balance decreased by 24.64% to $19.21 million as of June 30, 2023, from $25.49 million at the end of the previous year, mainly due to administrative expenses[97]. - The management fees paid or payable to the investment manager amounted to $5,153,690 for the six months ended June 30, 2023, down from $6,228,528 for the same period in 2022[82]. - Administrative expenses decreased to $5,567,698 from $6,549,964 year-over-year, indicating improved cost management[34]. Market and Economic Outlook - The World Bank projects global economic growth to slow from 3.1% in 2022 to 2.1% in 2023, with emerging markets facing increased financial pressure[177]. - China's economic growth is expected to achieve a target of around 5.0% in 2023, supported by strong retail sales and industrial production recovery[177]. - The fund's investments, primarily operating in China, are expected to continue recovering in performance due to the overall stable economic growth environment[177]. Sector Performance - The financial services segment reported a decrease in assets to $412,858,699 from $454,236,174 year-over-year[33]. - The technology segment saw a significant increase in assets to $229,839,106, up from $162,887,995 in the previous year[33]. - China Merchants Bank reported an unaudited net profit of RMB 75.8 billion for the first half of 2023, an increase of 9.09% year-on-year[120]. - China Chengxin Trust's unaudited net profit for the first half of 2023 was RMB 637 million, a decrease of 0.67% year-on-year, with significant declines in fee and commission income and interest income[122].