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].

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 ...