Financial Performance - For the six months ended June 30, 2023, the company reported a net profit of $80,411,139, compared to a net loss of $(85,640,580) for the same period in 2022[2]. - The total pre-tax loss for the period was $(13,303,100), compared to a pre-tax profit of $19,212,692 in the same period last year[14]. - For the six months ended June 30, 2023, the company's attributable profit was $63.68 million, compared to a loss of $70.99 million in the same period last year, marking a significant turnaround[35]. - The net profit for the current period is $63,682,960, compared to a net loss of $70,991,583 in the previous period[72]. - The net gain from financial assets for the current period is $8,041,000, while the previous period recorded a net loss of $85,640,000[54]. - The overall value of financial assets measured at fair value through profit or loss significantly increased, contributing to the profit turnaround[35]. Investment Income - The total investment income for the period was $1,072,112, down from $1,646,785 in the previous year, reflecting a decrease of approximately 34.8%[20]. - The company reported a total dividend income of $817,294, which decreased from $1,513,027 in the previous year, representing a decline of approximately 46%[20]. - Investment income decreased by 35.15% to $1.07 million for the six months ended June 30, 2023, down from $1.65 million in the same period last year, primarily due to reduced dividend income from investment projects[36]. Assets and Liabilities - The total assets under management for the company were reported at $158,746,148, an increase from $143,176,403 in the previous year[11]. - As of June 30, 2023, the company's cash and cash equivalents decreased by 24.64% to $19.21 million from $25.49 million at the end of the previous year, representing 2.51% of total assets[39]. - The total assets after deducting current liabilities amount to $730,812,765, up from $689,198,781 in the previous year[74]. - The company has no outstanding liabilities as of June 30, 2023, maintaining a stable financial position[40]. - The company has no bank loans as of June 30, 2023, consistent with the previous year[57]. Investment Strategy - The financial performance indicates a shift in investment strategy, focusing on sectors such as cultural media and consumption, as well as information technology[22]. - The company plans to focus on investment opportunities in digital finance, emerging technologies, cultural tourism, and healthcare sectors[62]. - The total investment value of the company as of June 30, 2023, was $744.52 million, with allocations of $412.86 million in financial services (54.05%), $83.58 million in cultural media and consumption (10.94%), and $229.84 million in information technology (30.08%)[41]. - The company is actively seeking investment opportunities and has signed an information technology investment project after the reporting date[37]. Dividends - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[45]. - The interim dividend declared for the year ended December 31, 2022, is $10,663,311, maintaining a dividend of $0.07 per share[63]. Market Outlook - The company expects China's economic growth to achieve a target of around 5.0% in 2023, supported by recovering consumer demand and government stimulus measures in infrastructure[43]. Accounting and Reporting - The financial information for the six months ended June 30, 2023, is prepared in accordance with Hong Kong Accounting Standards and relevant listing rules[77]. - The accounting policies and calculation methods used for the financial information are consistent with those applied in the consolidated financial reports for the year ended December 31, 2022[78]. - The analysis of the group's investment income (loss) for the six months ended June 30, 2023, includes realized and unrealized gains or losses on financial instruments[80]. - The total comprehensive income (expense) attributable to the company's shareholders for the period is reported[81]. Other Information - The company has not disclosed any new product developments or market expansion strategies during this reporting period[22]. - The company has not reported any significant mergers or acquisitions in the current financial period[22]. - The company sold all 67.24 million shares of China Reinsurance (Group) Corporation, generating net proceeds of 34.77 million HKD (approximately $4.46 million) with a pre-tax internal rate of return of -15.47%[56]. - The company invested 50 million RMB (approximately $7.02 million) in Beijing Hanwei Chuangxin Electronics Technology Co., acquiring a 6.42% equity stake[55]. - The company's net asset value as of June 30, 2023, was $604.07 million, an increase from $571.57 million on December 31, 2022, with a net asset value per share of $3.965[35]. - The basic earnings per share increased to $3.965 from $3.752 year-over-year[74]. - Administrative expenses for the period amounted to $(5,567,698), compared to $(6,549,964) in the previous year, indicating a reduction of about 15%[9].

Environmental Sustainability - The company has set a target to reduce paper consumption density by 5% by 2025 compared to 2020 levels[30]. - The company aims to achieve zero consumption of plastic bottles by 2025, continuing to reduce single-use plastic products[30]. - The company has established a climate change policy to identify and mitigate risks associated with extreme weather events, which may impact investment returns[37]. - The company has implemented an environmental management system to reduce its environmental footprint and promote sustainable office practices[36]. - The company has set a goal to incorporate energy efficiency as a standard in the procurement of office equipment by 2022[32]. - The company has not reported any non-compliance issues related to environmental laws and regulations during the reporting period[27]. - The company has established waste recycling bins in various office locations to achieve its waste reduction targets[31]. - The company has committed to considering the environmental, social, and governance performance of potential investments as a routine part of its investment evaluation process[34]. - The company aims to enhance its environmental, social, and governance (ESG) performance through continuous management and effective communication with stakeholders[40]. - The company has established a governance framework for ESG initiatives, focusing on resource allocation and risk monitoring[42]. - The company emphasizes the importance of stakeholder engagement to understand their perspectives and expectations regarding operational and sustainable development performance[43]. - The company emphasizes responsible investment practices, avoiding financing activities that intentionally violate environmental or labor laws[73]. Financial Performance - The company reported a net loss of $153,170,419 for the year 2022, compared to a profit of $24,205,367 in 2021, indicating a significant decline in performance[60]. - The total comprehensive loss for the year amounted to $212,800,388, contrasting with a comprehensive income of $42,453,325 in the previous year[60]. - The company experienced a loss of $199,780,049 from financial assets measured at fair value through profit or loss, compared to a gain of $48,648,395 in 2021[60]. - Administrative expenses decreased to $11,573,620 from $19,974,735 in 2021, reflecting cost-cutting measures[60]. - The company reported investment income of $14,847,528, slightly up from $14,144,426 in the previous year, indicating stable investment performance[60]. - The basic loss per share for the year was $(1.005), a decline from earnings of $0.159 per share in 2021[60]. - The company incurred a tax expense of $43,216,843, compared to a tax benefit of $(18,815,401) in the previous year, highlighting a shift in tax position[60]. - Total assets decreased from $982,043,768 in 2021 to $689,198,781 in 2022, a decline of approximately 29.8%[62]. - Net current assets dropped significantly from $78,715,121 in 2021 to $32,945,400 in 2022, representing a decrease of about 58.1%[62]. - The equity attributable to shareholders decreased from $805,697,463 in 2021 to $571,570,453 in 2022, a reduction of approximately 29.1%[65]. - The net asset value per share fell from $5.289 in 2021 to $3.752 in 2022, a decline of about 29.0%[62]. - Cash and cash equivalents decreased from $36,641,135 in 2021 to $25,489,216 in 2022, a drop of approximately 30.5%[62]. - The company’s reserve decreased from $128,034,239 in 2021 to $68,837,982 in 2022, a decline of about 46.2%[65]. - The company reported a pre-tax loss of $196.39 million for the year ended December 31, 2022, compared to a profit of $43.02 million in 2021[177]. - The net cash generated from operating activities was $12.69 million, a significant improvement from a net cash outflow of $12.73 million in the previous year[177]. - The total cash and cash equivalents decreased to $25.49 million as of December 31, 2022, down from $36.64 million at the beginning of the year[177]. - The company paid dividends amounting to $21.33 million during the year, an increase from $12.19 million in the previous year[177]. - The company’s financial assets are assessed for impairment using the expected credit loss model, reflecting changes in credit risk since initial recognition[173]. - The company’s investment income primarily comes from net gains or losses on financial assets measured at fair value through profit or loss[179]. - The company’s functional currency is Renminbi, but the consolidated financial report is presented in US dollars for user convenience[180]. - The company has adopted revised Hong Kong Financial Reporting Standards effective from January 1, 2022, impacting the preparation of its consolidated financial reports[181]. - The company’s financial assets and liabilities are recognized based on the terms of the financial instrument contracts, with transactions confirmed on the trade date[182]. - The audited consolidated net asset value of the group as of December 31, 2022, was $571.57 million, a decrease of 29.06% from $805.70 million in 2021[200]. - The audited consolidated loss for 2022 was $153.17 million, compared to an audited after-tax profit of $24.21 million in the previous year[200]. - The net asset value per share decreased to $3.752, down 29.06% from $5.289 in 2021[200]. Human Resources and Compliance - The percentage of trained employees decreased from 61.11% in 2021 to 38.89% in 2022[68]. - The company has implemented flexible working hours and work-from-home policies to adapt to changing work environments[66]. - The company has not reported any corruption-related non-compliance issues during the reporting period, including under the Prevention of Bribery Ordinance[120]. - The board is responsible for monitoring the effectiveness of the whistleblowing procedures for stakeholders[97]. - The company emphasizes continuous training for employees regarding their responsibilities, including updates on anti-corruption regulations[98]. - The company does not employ child or forced labor and has established effective human resources procedures to ensure compliance with labor laws[112]. Investment Strategy - The fund's investment strategy focuses on "concentration, prudence, innovation, and win-win," adhering to ESG principles to create shareholder value and sustainable corporate development[148]. - The fund's major investments are primarily located in China, with the local currency being Renminbi, which is subject to fluctuations against the US dollar and other currencies[150]. - The fund has established a secondary participation investment plan, allowing participants to receive returns proportional to their investment in project companies[129]. - The fund's investment in project companies may be affected by fluctuations in the Renminbi exchange rate, impacting the value of the invested enterprises[150]. - The fund's investment manager is responsible for expenses related to the participation plan and any identifiable costs associated with investments in project companies[129]. - The fund's independent auditors have confirmed the independence of each independent non-executive director as per the relevant regulations[154].

Financial Performance - The total comprehensive income attributable to the company's shareholders for the year was a net loss of $153.17 million, compared to a profit of $24.21 million in 2021[16]. - The company's net loss from financial assets for the year was $199.78 million, while the previous year recorded a net gain of $48.65 million[11]. - The group reported a loss attributable to shareholders of $15.317 million for the year ended December 31, 2022, compared to a profit of $24.21 million in the previous year, primarily due to a significant decline in the fair value of financial assets[49]. - The comprehensive income for the year included a net loss from financial assets measured at fair value through profit or loss, amounting to $(199.78 million)[59]. - The group’s total comprehensive income for the year was $(212.8 million), reflecting significant losses in investment activities[59]. - The basic loss per share for the year was $(1.005), indicating a decline in profitability compared to the previous year[59]. - The total pre-tax loss for the group in 2022 was $(196,387,262), compared to a pre-tax profit of $43,020,768 in 2021[86]. Assets and Liabilities - The total assets of the company decreased from $1.02 billion in 2021 to $715.62 million in 2022, representing a decline of approximately 29.9%[9]. - The net asset value attributable to shareholders decreased from $805.70 million in 2021 to $571.57 million in 2022, a reduction of about 29.0%[2]. - The company had no bank loans as of December 31, 2022, consistent with the previous year[21]. - The company’s cash and cash equivalents as of December 31, 2022, were $25.49 million, accounting for 3.56% of total assets[25]. - The net asset value of the group as of December 31, 2022, was $57.157 million, down from $80.57 million as of December 31, 2021, with a net asset value per share of $3.752 compared to $5.289 in the prior year[49]. Investment Activities - Investment income increased by 5.02% to $14.85 million in 2022, up from $14.14 million in 2021, primarily due to increased dividend income from investment projects[19]. - The company’s investment portfolio as of December 31, 2022, totaled $690.07 million, with financial services representing 63.47% of the total[25]. - The group invested RMB 6.5 million (approximately USD 1.02 million) in Huashun Xinan Technology Co., increasing its equity stake to 4.295%[30]. - The group agreed to invest USD 8 million in Immvira Bioscience Inc., acquiring a 1.67% equity interest[30]. - The group sold its 2.35% equity stake in Shenzhen Jiyang Intelligent Technology Co. for RMB 53.13 million (approximately USD 8.2 million), achieving a pre-tax internal rate of return of 8.90%[31]. - The group primarily invests in companies operating in mainland China, with no regional data related to investment activities presented[50]. - The group will continue to seek investment opportunities in sectors such as insurance, emerging technologies, cultural tourism, and healthcare[34]. Financial Reporting and Compliance - The group’s financial data is prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable disclosure requirements[64]. - The group has complied with all relevant corporate governance codes and regulations during the year[34]. Cash Flow and Dividends - Cash and cash equivalents decreased by 30.43% from USD 36.64 million to $25.49 million, primarily due to the payment of special dividends[32]. - The board proposed a final dividend of USD 0.07 per share, totaling USD 10.66 million for the year, down from USD 21.33 million in the previous year[35]. Foreign Exchange and Risks - The group faced a 9.38% depreciation of the RMB against the USD, impacting its holdings of RMB assets[33]. - The group has no foreign currency hedging policy but will monitor foreign exchange risks and consider hedging when necessary[33]. Other Financial Metrics - The total tax expense for the year was $43.216 million, a decrease from $18.815 million in the previous year, with a significant deferred tax amount of $44.54 million recorded[52]. - The financial services segment reported a net loss of $(160,535,201) for 2022, while the cultural media and consumer segment generated a profit of $8,791,597[86]. - Interest income from bank deposits decreased to $216,625 in 2022 from $297,161 in 2021[86]. - Administrative expenses for the group were $(11,573,620) in 2022, reflecting a significant cost burden on overall performance[86].

Financial Performance - For the six months ended June 30, 2022, the company reported a net loss of $70,991,583 compared to a profit of $61,031,772 for the same period in 2021, representing a significant decline[5]. - The total comprehensive loss for the period was $104,792,321, a stark contrast to the comprehensive income of $65,931,093 in the previous year[5]. - The company's investment income decreased to $1,646,785, down from $3,139,434 in the prior year, indicating a decline of approximately 47.5%[5]. - The company reported a pre-tax loss of $90.20 million, compared to a profit of $90.84 million in the same period of 2021, indicating a significant decline in performance[11]. - The total loss recognized in the profit and loss account for the six months ended June 30, 2022, was $85,640,580, compared to a gain of $94,839,747 for the same period in 2021[39]. - The company reported a shareholder loss of $70.99 million for the six months ended June 30, 2022, compared to a profit of $61.03 million in the same period last year, primarily due to a decline in the fair value of financial assets[90]. - The net loss from financial assets for the period was $85.64 million, a significant decrease from a net gain of $94.84 million in the previous year[90]. - The basic loss per share for the first half of 2022 was $(0.466), compared to $(0.401) for the same period in 2021, indicating a deterioration in earnings per share[63]. Asset and Liability Management - The fair value of financial assets at the end of the reporting period was $780,648,958, a decrease of 13.5% from $903,328,647 as of December 31, 2021[7]. - The company's total assets decreased to $828,771,590 from $982,043,768, reflecting a reduction of about 15.6%[7]. - The net asset value per share fell to $4.461 from $5.289, indicating a decline of approximately 15.7%[7]. - The total net assets decreased from $805.70 million on December 31, 2021, to $679.58 million on June 30, 2022, a reduction of about 15.6%[75]. - The total liabilities for the financial services segment were $53,174, a decrease from $61,734, showing improved financial management[54]. - The total segment assets reported were $819,174,810, down from $951,686,515, indicating a reduction in overall asset base[54]. Cash Flow and Liquidity - The company's cash and cash equivalents stood at $43,512,652, down from $36,641,135 at the end of 2021, reflecting an increase of approximately 18.8%[7]. - The cash generated from operating activities before changes in working capital was a negative $6.21 million, slightly improved from a negative $7.14 million in the prior year[11]. - The net cash generated from operating activities was $8.65 million, a substantial increase from $2.90 million in the same period last year, reflecting improved operational efficiency[11]. - The company recorded a net increase in cash and cash equivalents of $8.65 million, compared to an increase of $2.90 million in the previous year[11]. - As of June 30, 2022, the company's cash and cash equivalents stood at $43.51 million, down from $63.66 million at the end of the previous year, indicating a decrease in liquidity[11]. - Cash and cash equivalents increased by 18.75% to $43.51 million, up from $36.64 million at the end of the previous year, primarily due to proceeds from the sale of investment projects[99]. Investment Activities - The company made an additional investment of RMB 6.5 million (approximately $1.02 million) in Beijing Huashun Xinan Technology Co., Ltd., increasing its equity stake to 4.295%[91]. - The company exited its investment in Shenzhen Jiyang Intelligent Technology Co., Ltd., selling its 2.35% equity stake for RMB 53.13 million (approximately $8.20 million), achieving a pre-tax internal rate of return of 8.90%[92]. - As of June 30, 2022, the total investment value was $829.22 million, with financial services accounting for $510.70 million (58.47%) of the total assets[98]. - The company has committed to inject a total of RMB 50 million (approximately $7.54 million) into the Guokai Ruifeng Fund, with $5.67 million already invested as of June 30, 2022[79]. - The total investment amount in the Kexin Venture Capital Fund (Phase 3) was $22,927,700, with actual payments of $2,146,800, representing 0.126% and 0.178% respectively[177]. Operational Efficiency - Administrative expenses were reduced to $6,549,964 from $7,479,124, showing a decrease of about 12.4%[5]. - The company experienced a loss of $133,758 in interest income, which was an improvement from a loss of $217,319 in the prior year[11]. - Dividend income from equity investments decreased to $1.51 million from $2.92 million year-over-year, reflecting a decline in investment returns[11]. - The company has not reported any significant changes in its financial risk management policies during the period[19]. Market and Economic Conditions - The impact of the ongoing geopolitical situation, such as the Russia-Ukraine conflict, is not expected to have a direct and significant effect on the company's operations, as it primarily invests in businesses operating in China[18]. - The company anticipates a gradual recovery in economic activities in the second half of 2022, driven by consumption and investment demand[167]. - The global inflation is at its highest level in over 40 years, impacting monetary policies and economic growth[167]. Corporate Governance - The company has complied with all provisions of the Corporate Governance Code, except for the establishment of a remuneration committee[197]. - The mid-term financial report has been reviewed by Deloitte, ensuring compliance with the Hong Kong Institute of Certified Public Accountants standards[196]. - The independent review report is included in the mid-term report, confirming the accuracy of the financial data presented[196].

Financial Performance - The consolidated net asset value of the group as of December 31, 2021, was $805.70 million, an increase of 3.90% from $775.43 million in 2020[7]. - The audited profit after tax for 2021 was $24.21 million, a decrease of 73.04% compared to $89.79 million in the previous year[7]. - The company's net profit attributable to shareholders for the year ended December 31, 2021, was $24.21 million, a decrease of $65.58 million or 73.04% compared to the previous year[18]. - The net income from financial assets for the year was $48.65 million, down 61.45% from $126.20 million in the previous year[18]. - The company's net investment income decreased by 12.23% to $14.14 million, primarily due to a reduction in dividend income from investment projects[18]. - The fund's cash and cash equivalents decreased by 39.30% to $36.64 million as of December 31, 2021, from $60.36 million at the end of the previous year[24]. - The fund's cash and cash equivalents amounted to $36.64 million, representing 3.60% of total assets as of December 31, 2021[28]. - The total assets have shown a consistent increase over the years, reaching $805,697 thousand in 2021, compared to $649,050 thousand in 2019[120]. - The net profit for 2021 was $24,205 thousand, a decrease of 73% compared to $89,788 thousand in 2020[117]. - The net asset value increased to $805,697 thousand in 2021, up from $775,431 thousand in 2020, representing a growth of 3.2%[117]. Dividends - The board proposed a final dividend of $0.07 per share, maintaining the same as the previous year, and a special dividend of $0.07 per share, up from $0.01 per share last year, resulting in a total annual dividend of $0.14 per share, a 75% increase from $0.08 per share in the prior year[7]. - The company proposed a final dividend of $0.07 per share for the year 2021, totaling $21,326,622, an increase from $12,186,641 in 2020[126]. - The total dividend for 2021, including a special dividend of $0.07 per share, is $0.14 per share, compared to $0.08 per share in 2020[126]. - The company's distributable reserves as of December 31, 2021, amounted to $34,577,161, up from $24,786,454 in 2020[128]. Investments - The group completed investments in three new direct investment projects in the information technology sector, totaling $22.54 million[10]. - The total book value of the group's investment projects at the end of 2021 was $967.37 million, representing 95.05% of the total asset value, an increase of $58.10 million from $909.27 million at the end of 2020[9]. - The fund invested a total of RMB 30 million (approximately $4.6 million) in Huashun Xinan Technology Co., acquiring a 4.29% equity stake[19]. - The fund also invested RMB 35 million (approximately $5.42 million) in Xinyi Information Technology (Shanghai) Co., obtaining a 1.44% equity stake[20]. - The fund's major investment in China Merchants Bank had a book value of $422 million, constituting 41.48% of the financial services segment and 52.40% of the net asset value[33]. - The investment in the information technology sector was valued at $232.87 million, making up 22.87% of the total assets[36]. - The fund's investment in cultural media and consumption totaled $48 million, which is 4.73% of the total assets[33]. - The fund's investment in technology and medical sectors accounted for 28.89% of the net asset value[36]. - The book value of the fund's investment in AI medical technology was $41 million, representing 4.01% of the total assets[36]. - The fund completed investments in 27 projects by the end of December 2021, with 10 projects undergoing new rounds of financing and 3 projects partially exiting during the year[65]. Economic Environment - In 2021, China's GDP grew by 8.1%, with quarterly growth rates of 18.3%, 7.9%, 4.9%, and 4.0%[8]. - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling by 14.08% by the end of 2021, closing at 23,398 points[9]. - The Chinese economy is expected to stabilize in 2022, with a focus on industrial transformation and urbanization[93]. - The Central Economic Work Conference outlined seven policy measures to stabilize the macro economy in 2022[94]. Risk Factors - The fund faces significant economic risks due to its investments in Chinese enterprises, which are heavily influenced by China's macroeconomic development[98]. - Increased competition in the private equity investment market poses challenges, leading to potential price inflation of investment targets[99]. - The fund's stock market investments are subject to volatility influenced by macroeconomic factors, which can affect the net asset value of the fund[102]. - Legal uncertainties in China may limit the legal protections for investors, impacting the value of the fund's assets[103]. - Changes in government policies and regulations can significantly affect the value of the companies in which the fund invests[104]. - Currency fluctuations, particularly the RMB against the USD, can impact the financial performance of invested companies and the fund's reported net asset value[105]. - The fund's ability to repatriate profits and dividends may be restricted by Chinese foreign exchange regulations, affecting distributions to investors[106]. Governance and Management - The company has established a strong governance framework with independent directors who have extensive backgrounds in finance and investment management[139]. - The company is committed to maintaining high standards of corporate governance, as evidenced by the qualifications and experience of its board members[140]. - The board consists of three executive directors, three non-executive directors, and five independent non-executive directors as of December 31, 2021[165]. - The company has engaged Deloitte as its auditor for the upcoming annual general meeting[161]. - The independent non-executive directors have reviewed related party transactions to ensure they are conducted on normal commercial terms and in the best interest of shareholders[160]. - The company has not established a remuneration committee as all executive directors do not receive any remuneration from the company[190]. - The company provides ongoing training and support to directors to ensure compliance with corporate governance best practices[188]. Market Strategy - The company is focused on expanding its investment management services in the Greater China region, leveraging the expertise of its board members[138]. - The company aims to enhance its investment strategies by integrating insights from its diverse board, which includes professionals from various financial sectors[143]. - The company is positioned to capitalize on market opportunities in the Greater China region through strategic investments and partnerships[138]. - The fund anticipates continued investment opportunities in sectors like artificial intelligence and new infrastructure construction[94]. - Future investment directions will prioritize the financial industry, emerging technology sectors, and government-supported projects, aiming for long-term capital preservation and appreciation[95].

CHINA MERCHANTS CHINA DIRECT INVESTMENTS LIMITED 招 商 局 中 國 基 金 有 限 公 司 (於香港註冊成立之有限公司) ( 股份代號：133) 中 期 報 告 截 至 2 0 2 1 年 6 月 3 0 日 止 6 個 月 梁創順先生 公司資料 | --- | --- | |---------------------------------------------------------------------------------------------|----------------------------------------| | | | | | | | 董事會 | 投資經理 | | 周星先生 （主席） * （於 2021 年4月 26 日獲委任） | 招商局中國投資管理有限公司 | | 張日忠先生* | 香港皇后大道東1號 | | 王效釘先生# 謝如傑先生# | 太古廣場3期 1604-09 室 核數師 | | 簡家宜女士# | 德勤 關黃陳方會計師行 | | 諸立力先生 （簡家宜女士 # 之候補董事） | • | | 柯世鋒先生 | 註冊公 ...

Financial Performance - The consolidated net asset value of the group as of December 31, 2020, was $775.43 million, an increase of 19.47% from $649.05 million in 2019[8]. - The audited post-tax consolidated profit for 2020 was $89.79 million, a decrease of 11.81% compared to $101.81 million in the previous year[8]. - The net profit attributable to shareholders for the year ended December 31, 2020, was $89.79 million, a decrease of $12.02 million or 11.81% compared to the previous year[15]. - The net income from financial assets for the year was $126.20 million, a decrease of 4.29% from $131.85 million in the previous year[15]. - The company’s distributable reserves as of December 31, 2020, were $24,786,454, slightly down from $25,945,745 in 2019[131]. - The net profit for the year ended December 31, 2020, was $89,788 thousand, compared to a loss of $87,021 thousand in 2019, indicating a significant recovery[120]. Dividends - The board proposed a final dividend of $0.07 per share, unchanged from the previous year, and a special dividend of $0.01 per share, resulting in a total annual dividend of $0.08 per share, an increase of 14.29% from $0.07 per share in the prior year[8]. - The company proposed a final dividend of $0.07 per share and a special dividend of $0.01 per share, totaling $12,186,641, up from $10,663,311 in 2019[129]. - The company has maintained a stable dividend policy while considering investments for business growth[131]. Investment Activities - The total value of the group's investment projects at the end of 2020 was $909.27 million, representing 93.58% of the total assets, an increase of $195.30 million from $713.97 million at the end of 2019[10]. - The group completed investments in five new direct investment projects in 2020, with a total investment and committed investment amounting to $55.95 million[11]. - The group exited two direct investment projects in 2020, realizing a net amount of $5.78 million from the sales[11]. - The fund made a direct investment of RMB 220 million (approximately $31.12 million) in China UnionPay, acquiring a 0.17% equity stake[16]. - The fund invested RMB 60 million (approximately $8.60 million) for a 3% equity stake in iFlytek Medical[16]. - The total investment amount by Jiangmen Venture Capital Fund reached RMB 233 million across 19 projects, with RMB 14 million invested in 2020 alone[73]. Economic Outlook - The World Bank forecasts a global economic growth of 4% in 2021, with potential risks including pandemic resurgence and delayed vaccine rollout[12]. - The Chinese economy is expected to recover steadily, supported by policy dividends from the "14th Five-Year Plan" and improvements in corporate profitability[12]. - The group anticipates challenges from long-term economic growth slowdown and capital market volatility affecting asset prices[12]. - The company anticipates significant economic growth in Q1 2021 due to a low base effect, contingent on the absence of a resurgence of COVID-19[91]. Risk Management - The company faced various risks and uncertainties, which are detailed in the annual report, emphasizing the importance of risk management[128]. - The company has established a risk management and internal control system, which is continuously monitored and reviewed for effectiveness[200]. - The company faces economic risks due to its investments in Chinese enterprises, which are significantly influenced by the macroeconomic environment[96]. - Legal uncertainties exist due to the evolving nature of China's commercial laws, which may limit legal protections for investors[101]. Governance and Management - The board of directors has been authorized to determine the remuneration of the company's directors, reflecting a governance structure in place[133]. - The board consists of three executive directors, three non-executive directors, and four independent non-executive directors[171]. - The company has complied with all provisions of the Corporate Governance Code, except for the establishment of a remuneration committee[169]. - The board's governance practices include independent professional advice for all directors, ensuring compliance with rules and regulations[174]. - The company has established three committees under the board: the audit committee, nomination committee, and investment committee, to assist in monitoring management[174]. Shareholder Information - Major shareholders include China Merchants Group Limited, which holds 42,022,041 shares, representing 27.59% of the total issued shares[159]. - Lazard Asset Management LLC is another significant shareholder, owning 28,990,206 shares, accounting for 19.03% of the total issued shares[159]. - The company has maintained a public float of no less than 25% as required by listing rules[162]. Investment Strategy - The fund's investment strategy involves careful evaluation and selection of investment projects, considering factors such as investment scale and phased investment strategies[98]. - The fund generally acts as a strategic investor in portfolio companies, not exceeding 30% voting rights, which limits its control over management decisions[99]. - The fund has implemented a secondary participation investment plan to align the interests of management and stakeholders in new investment projects[105]. Financial Position - The total assets have shown a consistent upward trend, reaching $775,431 thousand in 2020 from $561,315 thousand in 2016[124]. - The fund's cash and cash equivalents decreased by 5.89% to $60.36 million as of December 31, 2020[22]. - The fund had no bank loans as of December 31, 2020, maintaining a debt-free status[23].

CHINA MERCHANTS CHINA DIRECT INVESTMENTS LIMITED 招 商 局 中 國 基 金 有 限 公 司 (於香港註冊成立之有限公司) ( 股份代號：133) 中 期 報 告 截 至 2 0 2 0 年 6 月 3 0 日 止 6 個 月 公司資料 | --- | --- | --- | |--------|-------------------------------------------------------------------|---------------------------------------------------| | | | | | | | | | 董事會 | | 投資經理 | | | 張健先生 （主席） * | | | | 張日忠先生* | 招商局中國投資管理有限公司 | | | 王效釘先生# | 香港皇后大道東1號 | | | 謝如傑先生# | 太古廣場3期 1604-09 室 | | | 簡家宜女士# （於 2020年4 月24日獲委任） | 核數師 | | | 諸立力先生 # | | | | （於 2020 年4月 24 日辭任及於同 ...

Financial Performance - The audited consolidated profit after tax for 2019 was $101.81 million, compared to an audited consolidated loss of $87.02 million in the previous year[8]. - The net profit attributable to shareholders for the year ended December 31, 2019, was $101.81 million, a turnaround from a net loss of $87.02 million in the previous year, primarily due to a significant increase in the fair value of financial assets[19]. - The net income from financial assets for the year was $131.85 million, compared to a net loss of $111.12 million in the previous year, with net income from listed and unlisted investments amounting to $114.35 million and $17.50 million, respectively[19]. - Investment income decreased by 17.74% to $15.53 million from $18.88 million in the previous year, mainly due to a reduction in dividend income from investment projects[19]. - The net profit for 2019 was $101,809 thousand, a significant recovery from a loss of $87,021 thousand in 2018[125]. Asset Value - The consolidated net asset value of the group as of December 31, 2019, was $649.05 million, an increase of 12.87% from $575.06 million in 2018[8]. - The net asset value as of December 31, 2019, was $649.05 million, up from $575.06 million as of December 31, 2018, with a net asset value per share of $4.261 compared to $3.775 in the previous year[19]. - The fund's cash and cash equivalents increased by 32.38% to $64.14 million as of December 31, 2019, from $48.45 million at the end of the previous year, representing 8.08% of the total assets[26]. Investment Activities - The total value of the group's investment projects at the end of 2019 was $713.97 million, representing 89.91% of the total assets, an increase of $79.76 million from $634.21 million at the end of 2018[10]. - The group completed a new direct investment project in Shenzhen Lanfeng Chuangshi Network Technology Co., Ltd. with an investment amount of $2.83 million in 2019[12]. - The group increased its investment in Pony AI Inc. by $610,000 to maintain its equity stake[12]. - The fund completed the sale of all 7.21 million shares of Haobai Holdings, generating net proceeds of RMB 125.61 million (approximately $18.69 million), with a pre-tax internal rate of return of 11.64%[25]. - The total investment value as of December 31, 2019, was $713.97 million, with the distribution being $515.61 million in financial services (64.93%), $104.10 million in cultural media and consumption (13.11%), and $67.92 million in information technology (8.55%)[30]. Dividend Policy - The board proposed a final dividend of $0.07 per share for the year 2019, consistent with the previous year[8]. - The company aims to maintain a stable dividend policy while balancing business growth investments[132]. - The company plans to consider special dividends based on favorable investment exit returns[132]. Economic Environment - The economic growth rate of China in 2019 was 6.1%, which was the lowest in 29 years, meeting the target set at the beginning of the year[9]. - The group anticipates challenges and opportunities in 2020 due to the global economic slowdown and the impact of the COVID-19 pandemic[13]. - The market outlook for 2020 indicates cautious sentiment due to potential economic risks, including the impact of COVID-19 on major economies[99]. Investment Strategy - The fund's investment strategy focuses on high-quality mature projects and emerging industries, with a future concentration on financial services, artificial intelligence, cultural tourism, and healthcare sectors[100]. - The fund's equity investment strategy aims to avoid blind competition for high-priced investment projects, focusing instead on long-term value preservation and growth[100]. - The fund's performance is expected to be affected by the overall economic conditions in China, which are currently under pressure from various factors, including the pandemic[99]. Governance and Compliance - The company is committed to compliance with relevant laws and regulations, as well as maintaining stakeholder relationships[128]. - The board consists of three executive directors, three non-executive directors, and three independent non-executive directors as of December 31, 2019[173]. - The company has confirmed that there are no significant transactions or arrangements involving directors or their associates that could constitute competition with the company's business[155]. - The independent auditor's fees for the year included $167,024 for audit services and $21,446 for non-audit services, primarily for evaluating the internal control system[198]. Risk Management - The annual report discusses major risk factors and uncertainties faced by the company[128]. - The fund's operational risks include market environment changes, economic downturns, and management decisions that may impact investment returns[105]. - The fund's exposure to legal and regulatory risks in China may impact the legal protection of investors' rights and responsibilities[112].

CHINA MERCHANTS CHINA DIRECT INVESTMENTS LIMITED 招 商 局 中 國 基 金 有 限 公 司 (於香港註冊成立之有限公司) ( 股份代號：133) 中 期 報 告 截 至 2 0 1 9 年 6 月 3 0 日 止 6 個 月 公司資料 厲放博士 | --- | --- | |-----------------------------|-----------------------------------------------------| | 董事會 | 投資經理 | | 張健先生 （主席） * | 招商局中國投資管理有限公司 | | 張日忠先生 * | 香港皇后大道東 1 號 | | 諸立力先生 # | 太古廣場 3期1604-09 室 | | 王效釘先生 # | | | 謝如傑先生 # | 核數師 | | 簡家宜女士 | | | （諸立力先生 # 之候補董事） | 德勤 • 關黃陳方會計師行 | | 柯世鋒先生* | | | 劉宝杰先生 ** | 法律顧問 | | 曾華光先生 ** | | | 厲放博士 ** | 史密夫 • 斐爾律師事務所 | | # ...