China Financial International Investments Limited 國 金 融 國 際 投 資 有 限 公 司 中 (於開曼群島註冊成立並遷冊往百慕達之有限公司) (股份代號: 721) 2021 载 目錄 目錄 公司資料 2 主席報告 3 管理層討論及分析 4 董事及高層管理人員簡歷 11 董事會報告 13 企業管治報告 22 環境、社會及管治報告 33 獨立核數師報告 48 綜合損益及其他全面收益表 53 綜合財務狀況表 54 綜合權益變動表 55 綜合現金流量表 56 綜合財務報表附註 57 五年財務概要 132 01 中國金融國際投資有限公司 公司資料 | --- | --- | --- | |----------------------------------------|--------------------------------------|-------| | | | | | 董事會 | 投資經理 | | | 執行董事 杜林東先生 （主席及行政總裁） | 中國金融國際投資管理有限公司 | | | | 託管商 | | | 非執行董事 丁小斌先生 | 交通銀行信 ...

Revenue and Income - Revenue for the six months ended December 31, 2020, was HKD 187,000, a significant decrease of 99% compared to HKD 19,199,000 in the same period of 2019[5] - Other income increased to HKD 22,946,000, up 285% from HKD 5,960,000 year-over-year[5] - Revenue for the six months ended December 31, 2020, was HKD 22,946,000, compared to HKD 5,960,000 for the same period in 2019, representing a significant increase[31] Losses and Financial Performance - The company reported a loss before tax of HKD 27,874,000, an improvement from a loss of HKD 96,257,000 in the previous year[5] - Total comprehensive loss for the period amounted to HKD 20,316,000, compared to a loss of HKD 132,066,000 in the same period last year[5] - The company reported a loss of HKD 27,874,000 for the six months ended December 31, 2020, compared to a loss of HKD 96,257,000 for the same period in 2019, indicating a significant improvement[12] - The company reported a loss attributable to shareholders of HKD 27,874,000 for the six months ended December 31, 2020, compared to a loss of HKD 96,257,000 in the same period of 2019[38] - The company experienced a net cash outflow from operating activities of HKD 11,708,000 for the six months ended December 31, 2020, compared to a net cash inflow of HKD 9,778,000 in the previous year[12] Assets and Liabilities - Non-current assets totaled HKD 753,959,000 as of December 31, 2020, an increase from HKD 702,736,000 as of June 30, 2020[7] - Current assets decreased to HKD 95,732,000 from HKD 199,570,000 in the previous period[7] - The company's net asset value was HKD 795,401,000, down from HKD 815,717,000 as of June 30, 2020[7] - The total liabilities decreased to HKD 54,290,000 from HKD 86,589,000 as of June 30, 2020[7] - The company’s total assets as of December 31, 2020, were HKD 795,401,000, down from HKD 1,084,706,000 as of December 31, 2019[10] Cash and Cash Equivalents - The company had cash and cash equivalents of HKD 48,479,000, a decrease from HKD 107,372,000 in the previous period[7] - As of December 31, 2020, the company's cash and cash equivalents amounted to HKD 7,554,000, a decrease from HKD 45,440,000 at the end of 2019[15] - As of December 31, 2020, the company held cash deposits of HKD 30,000,000 for potential investments, with a provision for expected credit losses of HKD 7,500,000[80] Investments and Segments - The clean energy segment reported a loss of HKD 11,801,000 for the six months ended December 31, 2020, while the real estate and natural gas segment incurred a loss of HKD 14,439,000[29] - The company reported a loss of HKD 7,327,000 from its micro-lending services segment for the six months ended December 31, 2020[29] - The company plans to exit the micro-lending industry due to declining interest rates and rising operational risks, focusing instead on investments in the bioenergy sector[127] - The company has invested in several bioenergy projects, with notable investments including HKD 150,065,000 in Mengzhou Houyuan Biotechnology Co., which had a fair value of HKD 146,581,000, accounting for 18.43% of the group's net asset value[133] Corporate Governance and Compliance - The board of directors is responsible for maintaining high levels of corporate governance and has complied with the corporate governance code, with one exception regarding the roles of the chairman and CEO being held by the same individual[165] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and practices adopted by the group[169] - The company will continue to monitor and review its corporate governance practices to ensure compliance with the corporate governance code[166] Future Outlook and Strategy - The company plans to continue monitoring cash flow forecasts and may need to secure additional equity or debt financing to support future capital plans[18] - The company aims to maximize shareholder value by gradually exiting the micro-lending sector while increasing its focus on bioenergy investments[127] - The company plans to continue focusing on the bioethanol industry in China to maximize shareholder value[144] - The company has entered into cooperation agreements with local governments and companies to establish joint ventures in the bioethanol sector[144] Market Conditions and Risks - The company continues to assess the impact of the pandemic on its operations and financial performance, indicating a cautious outlook for future periods[24] - The company does not face significant foreign exchange risk as the majority of its transactions are conducted in HKD and RMB[152] Shareholder Information - The company’s major shareholders include Zhang Zuhao with 1,000,000,000 shares (9.11%) and Hongjing Holdings Limited with 1,016,860,000 shares (9.27%) as of December 31, 2020[159] - The total equity held by the beneficial owner Du Lintong amounts to 685,914,830 shares, representing approximately 6.25% of the company’s equity[155]

Financial Performance - The group's net asset value decreased to HKD 815,717,000, down from HKD 1,084,706,000 in the previous year[25]. - The group reported a loss attributable to owners of HKD 218,500,000, compared to a loss of HKD 327,563,000 in the previous year[35]. - Dividend income from investments decreased by 88.12% to HKD 3,354,000 compared to HKD 28,230,000 last year[36]. - Total loss from listed securities business amounted to HKD 137,194,000, an increase from last year's loss of HKD 114,742,000[37]. - Non-listed investment portfolio recorded a total loss of HKD 101,644,000, significantly reduced from HKD 295,832,000 last year[41]. - The company's total equity as of June 30, 2020, is HKD 815,717,000, down from HKD 1,084,706,000 in 2019[116]. - The company's distributable reserves as of June 30, 2020, amounted to HKD 702,808,000, a decrease from HKD 967,094,000 in 2019[150]. - The group had a total employee cost of HKD 10,922,000 for the year, a decrease of 19% from HKD 13,496,000 in the previous year[118]. Investment Strategy - The company continues to focus on the bioethanol industry in China, aiming to maximize shareholder value[31]. - The company signed cooperation agreements to establish two joint ventures in the bioethanol sector with local government and industry partners[31]. - The company aims to prudently assess and mitigate potential risks while striving to deliver greater returns to shareholders[31]. - Focus will continue on investments in the bioenergy sector to maximize shareholder value[44]. - The main business of the company and its subsidiaries remains investment holding and investment in listed and unlisted companies in Hong Kong and other regions of China, with no significant changes in business nature during the year[138]. - The company has not made any significant changes to its investment strategy or market expansion plans during the year[138]. - The company’s business is primarily focused on investments in listed and unlisted investments and other related financial assets, which are subject to global economic fluctuations[171]. Economic Context - The Chinese economy grew by 6.1% in 2019, aligning with the growth target of 6% to 6.5%[28]. - The total import and export volume in China increased by 3.4% year-on-year[28]. Governance and Compliance - The board of directors presented the audited financial statements for the year[137]. - The board of directors includes experienced professionals with extensive backgrounds in finance and investment, enhancing the company's governance[121][122][123][127][128]. - The company complies with applicable laws and regulations, hiring legal and compliance advisors as necessary[143]. - The company has received annual independence confirmations from all independent non-executive directors, affirming their independence[169]. - The company has adopted a board diversity policy that considers factors such as gender, age, cultural background, and professional experience to enhance board efficiency[199]. - The board composition is regulated by company bylaws and must include at least three independent non-executive directors, with one possessing appropriate professional qualifications or financial management expertise[198]. Shareholder Information - The total number of issued shares remains approximately 10,971,634,000, unchanged from 2019[116]. - The board does not recommend the distribution of a final dividend for the year, maintaining a policy that dividends will be declared based on the group's after-tax profits and operational needs[114]. - Major shareholders owning 5% or more of the company's shares include Zhang Zuhao with 1,000,000,000 shares (9.11%), Century Gold Investment Limited with 1,000,000,000 shares (9.11%), and Li Lihong with 979,830,000 shares (8.93%)[163]. Operational Metrics - As of June 30, 2020, the group's cash and cash equivalents amounted to HKD 64,911,000, an increase from HKD 36,124,000 in 2019[112]. - The current ratio of the group as of June 30, 2020, is approximately 2.64 times, down from 26.47 times in 2019[112]. - The debt-to-asset ratio of the group as of June 30, 2020, is approximately 9.60%, compared to 6.99% in 2019[112]. - The group has no bank borrowings as of June 30, 2020, consistent with the previous year[113]. Employee Relations - The company has established frameworks and formal communication channels to maintain good relationships with employees and stakeholders[142]. - The group maintained 15 employees as of June 30, 2020, compared to 14 employees in 2019[118]. Risk Management - The group faced minimal foreign exchange risk as transactions in Renminbi were not significant during the year[117]. - The company is committed to promoting environmental and social sustainability, complying with all relevant laws and regulations in Hong Kong[172]. Miscellaneous - The company has established appropriate insurance coverage for potential legal claims against directors[170]. - The company has adopted a share option scheme to incentivize participants contributing to the group's development[176]. - The company has no significant transactions or contracts in which directors have a substantial interest during the year[166].

China Financial International Investments Limited 中國金融國際投資有限公 司 (於開曼群島註冊成立並遷冊往百慕達之有限公司) (股份代號: 721) 2019 中期報告 公司資料 公司資料 | --- | --- | |-----------------------------------------|----------------------------------------------------------------------------| | 董事會 | 投資經理 | | 執行董事 | 中國金融國際投資管理有限公司 | | 杜林東先生 （主席及行政總裁） | 託管商 | | 非執行董事 丁小斌先生 | 交通銀行信託有限公司 | | 張華宇先生 （副主席） 李傑女士 | 法律顧問 | | 陳希女士 | 百慕達法律 Conyers Dill & Pearman | | 獨立非執行董事 張晶先生 | 註冊辦事處 | | 曾祥高先生 李財林先生 | Clarendon House 2 Church Street Hamilton | | 執行委員會 | ...

Financial Performance - The group's net asset value decreased to HKD 1,084,706,000, down from HKD 1,460,083,000 in the previous year, representing a decline of approximately 25.7%[10] - The group incurred a loss of HKD 327,563,000, primarily due to fair value losses on non-listed investments of approximately HKD 130,230,000 and listed investments of approximately HKD 79,041,000[10] - The company reported a net loss attributable to shareholders of HKD 327,563,000 for the year, compared to a loss of HKD 72,842,000 in the previous year[21] - Investment dividend income increased by 80.58% to HKD 28,230,000 from HKD 15,633,000 last year[22] - The total loss from listed securities business was HKD 113,101,000, up from a loss of HKD 46,910,000 last year[23] - The fair value of non-listed investments decreased by 19.62% to HKD 641,360,000 from HKD 797,909,000 last year[27] - The fair value loss of non-listed investments was approximately HKD 130,230,000[21] - The fair value loss of listed investments was approximately HKD 79,041,000[21] - The company did not recommend a final dividend for the year, similar to the previous year[50] - The company reported a total distributable reserve of HKD 967,094,000 as of June 30, 2019, down from HKD 1,368,565,000 in 2018[83] Business Strategy and Operations - The company plans to focus on the bioethanol industry in China, with an expected annual supply of 1.3 million tons of bioethanol by the end of 2020 due to mandatory E10 gasoline promotion[17] - The company acquired a 30% stake in Hunan Huanan New Energy Co., Ltd. to establish biofuel blending facilities in Hunan Province, enhancing strategic assets in Central China[17] - The company aims to expand its ethanol business into more regions in China, including Guangdong, Hebei, and Hubei provinces[17] - The company plans to exit investments in the micro-lending industry due to rising operational risks and declining interest rates[30] - The focus will continue to be on investments in the bioenergy sector to maximize shareholder value[30] Economic Outlook - The global economic outlook remains weak, with trade tensions impacting growth, particularly in the US and Europe[13] - The company maintains a cautiously optimistic long-term view on China's economic growth despite current trade tensions[16] Risk Management - The board will prudently assess and mitigate potential risks while striving to deliver greater returns to shareholders[17] - The group’s total investment in non-listed equity and convertible bonds is under review, with ongoing assessments of market conditions[35] - The company has engaged an internal control consultant to review and assess the effectiveness of its financial, operational, and compliance monitoring and risk management systems in three phases[153] - The board is responsible for maintaining an effective risk management and internal control system to safeguard shareholder investments and company assets[153] Corporate Governance - The board includes experienced professionals with backgrounds in banking, investment, and management, enhancing the company's strategic capabilities[59][60][61] - The company appointed Chen Xi as a non-executive director effective July 26, 2019, indicating a potential shift in governance and strategic direction[71] - The overall governance structure is designed to support the company's long-term strategic goals and operational efficiency[59][71] - The company has adopted the corporate governance code principles and complied with relevant listing rules[119] - The board consists of 8 members, including 1 executive director, 4 non-executive directors, and 3 independent non-executive directors[124] Employee and Stakeholder Relations - The company has a strong commitment to employee welfare, offering competitive compensation and various benefits, including education allowances and housing subsidies[175] - The company has established a framework to motivate employees and formal communication channels to maintain good relationships with stakeholders[77] - The company encourages directors to attend external seminars or training courses for continuous professional development[130] Environmental Sustainability - The company emphasizes its commitment to environmental sustainability and compliance with relevant laws and regulations[102] - The total greenhouse gas emissions for the reporting period were 10,965.83 kg CO2 equivalent, down from 18,225.10 kg CO2 equivalent in the previous year, indicating a reduction of about 39.1%[170] - The company has implemented various measures to reduce energy consumption, including setting indoor temperatures between 20°C and 26°C and encouraging the use of energy-efficient office equipment[169] - The company promotes a paperless office environment and encourages employees to print double-sided documents to save paper[167] Financial Instruments and Investments - The fair value of financial instruments measured at Level 3 amounted to HKD 528,171,000 and HKD 398,692,000, representing 85.4% of the group's net assets as of June 30, 2019[196] - The fair value of debt instruments measured at other comprehensive income was HKD 302,234,000, representing 27.9% of the group's net assets as of June 30, 2019[200] - Impairment losses on debt instruments measured at fair value through other comprehensive income amounted to HKD 161,824,000 recognized in the profit and loss for the year[200] Shareholder Engagement - The company emphasizes the importance of maintaining communication with shareholders through various channels, including interim reports and annual reports[155] - The company has adopted a shareholder communication policy to encourage active dialogue with shareholders and regularly reviews its effectiveness[157] - The company held two shareholder meetings during the year, with all proposed resolutions being formally passed[161]

Revenue and Profitability - Revenue for the six months ended December 31, 2018, was HKD 28,601,000, a decrease of 10.3% from HKD 32,084,000 in the same period of 2017[11] - Profit before tax for the period was HKD 45,319,000, up 44.2% from HKD 31,410,000 in the prior year[11] - The company reported a net profit of HKD 15,895,000, a decrease of 49.3% from HKD 31,407,000 in the same period last year[11] - The total loss for the period ended December 31, 2018, was HKD 90,330,000, compared to a loss of HKD 41,913,000 for the same period in 2017[78] - The group reported a total profit of HKD 15,895,000 for the six months ended December 31, 2018, compared to HKD 31,407,000 for the same period in 2017, indicating a decrease in profitability[70] Comprehensive Income - Total comprehensive income for the period was a loss of HKD 147,094,000, compared to a loss of HKD 15,409,000 in the previous year[11] - The total loss recognized in other comprehensive income for financial assets at fair value was HKD 162,642,000 for the six months ended December 31, 2018[102] - The company experienced a total loss of HKD 68,986,000 recognized in other comprehensive income during the period[195] Financial Position - The company's total assets and liabilities as of December 31, 2018, are detailed in the interim consolidated financial position statement[13] - The company's equity decreased to HKD 1,308,816,000 from HKD 1,460,083,000, reflecting a decline of approximately 10%[14] - The group's total assets as of December 31, 2018, amounted to HKD 1,459,222,000, a decrease from HKD 1,586,175,000 as of June 30, 2018[72] Cash Flow - The net cash used in operating activities was HKD (68,647,000), an improvement from HKD (104,211,000) in the previous year, showing a reduction of approximately 34%[21] - The net decrease in cash and cash equivalents was HKD (70,242) thousand, with cash and cash equivalents at the beginning of the period being HKD 153,935 thousand[23] - As of December 31, 2018, cash and cash equivalents at the end of the period stood at HKD 80,301 thousand, down from HKD 320,735 thousand a year earlier[23] Financial Assets and Liabilities - The net change in fair value of financial assets was a loss of HKD 33,127,000, compared to a gain of HKD 23,694,000 in the previous year[11] - The fair value of financial assets measured at fair value through profit or loss was HKD 116,650,000, compared to HKD 537,344,000, a decrease of about 78%[14] - The fair value of financial assets measured at fair value through other comprehensive income was HKD 437,588,000 at the end of the period[195] Accounting Standards and Policies - The company adopted new or revised Hong Kong Financial Reporting Standards effective from July 1, 2018, which did not have a significant impact on accounting policies[32] - The transition to HKFRS 9 resulted in a reclassification of financial assets, impacting the reserves and cumulative losses[33] - The group has shifted from an incurred loss model to an expected credit loss model for impairment assessment, impacting the recognition of credit losses earlier than under the previous standard[52] Investments - The group’s investment strategy includes providing microfinance and financial consulting services through its joint ventures in China[104] - The company invested in a joint venture, Tianjin Saida, acquiring a 30% stake, which primarily provides micro-lending and financial consulting services in Tianjin, China[108] - The group has invested in multiple joint ventures across China, primarily focused on providing microloans and financial consulting services, including a 30% stake in Harbin Zhongjin Guoxin and a 10% stake in Tianjin Guotou Rongsun[136][137] Segment Performance - The segment performance for micro-lending services showed a loss of HKD 85,989,000 for the six months ended December 31, 2018, compared to a loss of HKD 27,774,000 for the same period in 2017[70] - Real estate and natural gas segment reported a profit of HKD 62,140,000 for the six months ended December 31, 2018, compared to a loss of HKD 5,821,000 for the same period in 2017[70] - Fixed income financial assets investment segment generated a profit of HKD 87,897,000 for the six months ended December 31, 2018, compared to HKD 46,426,000 for the same period in 2017[70] Management and Expenses - The total management fees paid to CICC International Investment Management for the six months ended December 31, 2018, were HKD 798,000, down from HKD 1,368,000 in 2017[164] - The total remuneration for key management personnel for the six months ended December 31, 2018, was HKD 3,136,000, a decrease from HKD 5,570,000 in 2017[168] - The group’s total undistributed expenses for the reporting period included employee costs of HKD 6,439,000, financing costs of HKD 1,588,000, and other expenses of HKD 12,157,000[70]