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 | | # ...

Financial Performance - The consolidated net asset value of China Merchants China Fund Limited as of December 31, 2018, was $575.06 million, a decrease of 18.50% from $705.63 million in 2017[8]. - The audited consolidated loss for 2018 was $87.02 million, compared to an audited profit of $117.90 million in the previous year[8]. - The net asset value per share decreased by 18.50% to $3.775 from $4.632 in 2017[8]. - The company reported a shareholder loss of $87.02 million for the year ended December 31, 2018, compared to a profit of $117.90 million in the previous year, primarily due to a significant decline in the fair value of financial assets[18]. - The fund's net loss from financial assets for the year was $111.12 million, compared to a net gain of $174.21 million in the previous year[18]. - Investment income increased by 24.13% to $18.88 million, driven by growth in dividend and distribution income as well as interest income[18]. - The company reported a net loss of $87,021 thousand for the year 2018, compared to a profit of $117,903 thousand in 2017, marking a significant decline[125]. - The company's net asset value decreased from $705,626 thousand in 2017 to $575,055 thousand in 2018, reflecting a drop of approximately 18.4%[125]. Dividend and Shareholder Returns - The total dividend for the year was $0.17 per share, an increase of 183.33% from $0.06 per share in the previous year[8]. - A special interim dividend of $0.05 per share was declared, totaling $7,616,651, as a celebration of the company's 25th anniversary[132]. - The proposed final dividend for 2018 is $0.07 per share, an increase from $0.06 per share in 2017, amounting to a total of $18,279,962[132]. - The company's distributable reserves as of December 31, 2018, were $47,652,713, slightly down from $47,689,857 in 2017[135]. - The company plans to maintain a stable dividend policy while balancing business growth and investment opportunities[135]. Investment Activities - The total value of the group's investment projects at the end of 2018 was $634.21 million, accounting for 92.20% of the total assets, down from $824.96 million in 2017[10]. - The group completed investments in three new direct investment projects in 2018, totaling $18.68 million, all related to information technology[12]. - The fund completed investments in three new technology-related projects during 2018, including a $4.74 million investment in a venture capital fund focused on machine intelligence and IoT[19]. - The fund invested approximately $5.94 million in Cambricon Technologies, acquiring a 0.246% stake in the AI chip development company[19]. - The fund also invested $8 million in Pony AI Inc., a Chinese autonomous driving technology company, acquiring at least a 0.8% stake[20]. - The fund's total investment value as of December 31, 2018, was $634.21 million, with 58.30% in financial services and 22.10% in cultural media and consumption[27]. Economic Environment - The overall economic growth rate in China for 2018 was 6.6%, which was the lowest in 28 years[9]. - The Shanghai Composite Index fell by 24.58% in 2018, while the Hang Seng Index decreased by 13.61%[9]. - The global economic growth faces risks of further slowdown, with uncertainties from the US-China trade dispute impacting China's economic performance in 2019[99]. - The Chinese government emphasizes stable economic progress in 2019, focusing on high-quality manufacturing and rural revitalization strategies[100]. - The fund anticipates that its investment projects in China will be affected by the expected economic slowdown and structural adjustments[99]. Investment Strategy and Focus - The fund aims to explore more investment opportunities in sectors like artificial intelligence and new infrastructure, which are expected to receive policy support[100]. - The fund focuses on investing in high-quality non-listed Chinese enterprises and domestic and international Chinese concept stocks, with a strategy emphasizing mature projects and emerging industry opportunities[103]. - Future investment directions will concentrate on the financial industry, particularly insurance, emerging technology industries led by artificial intelligence, cultural tourism, and healthcare sectors[103]. - The fund aims to optimize its investment portfolio and continuously adjust its risk preferences to achieve long-term capital preservation and appreciation[103]. Risks and Challenges - The fund faces significant economic risks due to its investments in Chinese enterprises, which are heavily influenced by China's macroeconomic development[106]. - Market competition risk is heightened as the private equity investment market in China grows, leading to increased competition for potential investment targets[107]. - Operational risks arise from the complexity of evaluating and selecting investment projects, which can affect investment time costs and returns[109]. - The fund is subject to legal uncertainties due to the evolving nature of China's commercial legal system, which may limit legal protections for investors[111]. - Policy and regulatory risks can impact the value of the fund's investments, as changes in government policies, taxes, and regulations may affect the invested enterprises[112]. - Currency fluctuation risks are present, as the fund's investments are primarily in RMB, which can affect the value of investments and the fund's net asset value reported in USD[113]. - The fund's ability to remit profits and dividends outside of China is subject to foreign exchange control regulations, which may limit its capacity to distribute returns to investors[114]. Governance and Management - The board of directors includes a mix of executive and independent non-executive members, ensuring diverse governance[139]. - The company has established indemnity provisions for its directors, ensuring protection against liabilities incurred in the course of their duties[164]. - The company has purchased insurance for its directors' responsibilities and related litigation costs, further safeguarding its leadership[165]. - The board consists of three executive directors, three non-executive directors, and three independent non-executive directors as of December 31, 2018[184]. - The company has complied with all provisions of the Corporate Governance Code, except for the establishment of a remuneration committee[182]. - The independent non-executive directors have reviewed related party transactions and confirmed they were conducted on normal commercial terms[176]. Shareholder Information - Major shareholders include China Merchants Group Limited, holding 42,022,041 shares, representing 27.59% of the total issued shares[166]. - Lazard Asset Management LLC holds 26,084,706 shares, accounting for 17.12% of the total issued shares[166]. - The company has maintained a public float of at least 25% of its issued shares as required by listing rules[170].