Group 1 - The core point of the article is that China Merchants China Fund has transferred its shares from China Merchants Securities Hong Kong to Tianfeng International Securities and Futures, with a market value of HKD 240 million, accounting for 10.13% of the total [1] - As of June 30, 2025, the unaudited net asset value per share of China Merchants China Fund is reported to be USD 5.122, equivalent to HKD 40.21 [1]

Summary of Key Points Core Viewpoint - The latest shareholder equity disclosures for several companies, including OKURA HOLDINGS, Sheng Tong Technology, Runmai De-B, Xin Feng Group, and China Merchants China Fund, were made on July 30, 2025, indicating significant changes in shareholding structures and ownership percentages. Group 1: OKURA HOLDINGS (01655) - Ichikura Limited increased its holdings from 72 million shares to 375 million shares, raising its ownership percentage from 12.00% to 62.50% [2][3] - Other entities such as Schädler Claude and Karmad AG also reported similar increases in their holdings, confirming a substantial consolidation of ownership [3] Group 2: Sheng Tong Technology (N23040) - Yang Xiaoyuan reduced his holdings from 138,000 shares to 127,500 shares, resulting in a decrease in ownership percentage from 0.48% to 0.44% [2] Group 3: Runmai De-B (02297) - Huang Li reduced his holdings from 111 million shares to 99.025 million shares, leading to a decrease in ownership percentage from 7.95% to 7.07% [2] - Multiple entities, including Shenzhen Futian Tongchuang Weiye and others, also reported reductions in their holdings, indicating a trend of divestment [2] Group 4: Xin Feng Group (01223) - Ke Qinghui and Huang Lining both reduced their holdings from 470 million shares to 424 million shares, with ownership percentages dropping from 15.80% to 14.26% [2] Group 5: China Merchants China Fund (00133) - Various entities under China Merchants China Fund reported complete divestment from their holdings, with previous ownership percentages ranging from 8.25% to 9.26% [2][3] - The fund's significant reduction in holdings indicates a strategic shift or reallocation of investment focus [3]

Summary of Key Points Core Viewpoint - As of July 14, a total of 138 stocks reached their 52-week highs, indicating a strong performance in the market, with notable leaders including Green Heart Group Holdings, OK Blockchain, and Pearl River Steel Pipe [1]. Group 1: Top Performers - Green Heart Group Holdings (02999) achieved a closing price of 0.013 with a peak of 0.017, marking a 70.00% increase [1]. - OK Blockchain (01499) closed at 0.680, reaching a high of 0.690, reflecting a 48.39% rise [1]. - Pearl River Steel Pipe (01938) had a closing price of 0.335 and a peak of 0.340, resulting in a 33.33% increase [1]. Group 2: Other Notable Stocks - Weishi Jiajie (00856) saw a 32.01% increase, closing at 8.870 with a high of 11.300 [1]. - Cloud Intelligence (09678) reached a high of 520.000, closing at 510.000, which is a 20.99% increase [1]. - China Chengtong Development Group (00217) closed at 0.165 with a peak of 0.166, marking a 14.48% rise [1]. Group 3: Additional Stocks with Significant Increases - Sihuan Pharmaceutical (00460) closed at 1.380, reaching a high of 1.430, which is a 14.40% increase [1]. - Taited Pharmaceutical (03880) had a closing price of 36.950 and a peak of 37.400, reflecting a 13.85% rise [1]. - Beihai Kangcheng-B (01228) closed at 0.850 with a high of 0.960, resulting in a 12.94% increase [1].

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].

Core Viewpoint - Xinkai Technology (001335.SZ) has initiated its subscription with an issue price of 12.80 yuan per share and a price-to-earnings ratio of 14.38 times, focusing on the development, sales, and service of organic pigments and colorants [1][2]. Company Overview - Xinkai Technology specializes in organic pigments, including azo pigments, heterocyclic pigments, and phthalocyanine pigments, primarily used in inks, coatings, and plastics [1]. - The company has established subsidiaries in countries such as the Netherlands, the USA, Australia, Canada, Turkey, India, and the UK, with operations in over 70 countries and regions [2]. Market Position - Xinkai Technology is a leading exporter in the organic pigment industry in China, having ranked first in exports from 2015 to 2023 according to the China Dye Industry Association [2]. - The company has completed 89 REACH registrations for organic pigments and related chemicals, positioning itself as a leader in the domestic market for REACH compliance [2]. Financial Performance - The company reported revenues of approximately 1.206 billion yuan, 1.192 billion yuan, 1.069 billion yuan, and 666 million yuan for the years 2021, 2022, 2023, and the first half of 2024, respectively [2]. - Net profits for the same periods were 89.06 million yuan, 85.31 million yuan, 84.55 million yuan, and 42.49 million yuan [2]. - As of June 30, 2024, total assets amounted to 1.629 billion yuan, with equity attributable to shareholders at 597.35 million yuan and a debt-to-asset ratio of 60.68% [3].

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].

Company Overview - Xinkai Technology, established in 1996, is a significant supplier in the global organic pigment industry, focusing on the development, sales, and service of organic pigments and colorants [2][4] - The company offers over 450 specifications of pigment products, including azo pigments, heterocyclic pigments, and phthalocyanine pigments, which are known for their durability and environmental friendliness [2][4] Financial Performance - In 2024, Xinkai Technology achieved a revenue of approximately 1.417 billion yuan, representing a year-on-year increase of 32.55%, and a net profit of about 111 million yuan, up 26.31% [5] - The revenue growth is attributed to stable macroeconomic conditions and increased consumer confidence, leading to higher downstream demand [5] - For Q1 2025, the company expects revenue between 340 million to 370 million yuan, reflecting a year-on-year growth of 6.94% to 16.37%, and a net profit of 20.5 million to 23.5 million yuan, indicating a growth of 18.23% to 35.53% [5] Market Position - Xinkai Technology has been the top exporter of organic pigments in China for several consecutive years, with a significant presence in over 70 countries and regions [6][7] - The company has established long-term partnerships with major international firms, enhancing its brand influence in the industry [7] Industry Insights - The global organic pigment market maintains a balanced demand and supply, with an annual production of approximately 400,000 to 500,000 tons, and China being the largest producer and exporter [7][8] - In 2022, the global organic pigment market size was approximately 368.62 million yuan, with Xinkai Technology's sales amounting to 1.145 billion yuan, capturing about 3.11% of the market share [8] - The industry is expected to see increased competitiveness and profitability for leading companies like Xinkai Technology due to rising environmental regulations and industry upgrades [8]

[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]