[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) The company achieved a **19.6%** increase in profit attributable to owners, reaching **HKD 64.16 million**, primarily due to improved associate performance and cost control, while total assets decreased and liabilities significantly reduced, enhancing financial stability [Consolidated Statement of Profit or Loss and Other Comprehensive Income Analysis](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Profit attributable to owners increased by **19.6%** to **HKD 64.16 million**, primarily due to a turnaround in associates' performance and reduced costs, despite lower revenue and expanded unrealized investment losses Consolidated Statement of Profit or Loss Key Data | Indicator | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Turnover | 598,364 | 522,006 | +14.6% | | Revenue | 273,067 | 308,329 | -11.4% | | Net unrealized losses on unlisted investments | (194,241) | (42,572) | -356.3% | | Net realized gains/(losses) on disposal of investments | 56,898 | (41,918) | Turnaround to gain | | Operating profit | 64,104 | 240,071 | -73.3% | | Share of profits/(losses) of associates and joint ventures | 53,979 | (99,097) | Turnaround to profit | | Profit before tax | 72,110 | 54,608 | +32.0% | | Profit for the year attributable to owners of the Company | 64,158 | 53,653 | +19.6% | | Basic and diluted earnings per share (HK Cents) | 0.61 | 0.51 | +19.6% | - Total revenue for the year was **HKD 273 million**, primarily comprising **HKD 265 million** in interest income, a decrease from **HKD 308 million** in the prior year[10](index=10&type=chunk) - Share of results from associates and joint ventures turned from a **HKD 99.1 million loss** last year to a **HKD 53.98 million profit** this year, mainly due to improved performance from Treasure Up, a key driver of this year's profit growth[57](index=57&type=chunk) [Consolidated Statement of Financial Position Analysis](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) Total assets decreased by **6.6%** to **HKD 10.67 billion**, while total liabilities significantly reduced by **52.3%** to **HKD 720.78 million**, primarily due to lower borrowings, leading to a slight increase in total equity and improved financial structure Consolidated Statement of Financial Position Key Data | Indicator | 2025 (HKD Thousands) | 2024 (HKD Thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Assets | 10,668,387 | 11,422,397 | -6.6% | | Total Liabilities | 720,783 | 1,509,777 | -52.3% | | - Of which: Borrowings | 643,258 | 1,417,414 | -54.6% | | Total Equity | 9,947,604 | 9,912,620 | +0.4% | | Net Asset Value per Share | HKD 0.95 | HKD 0.94 | +1.1% | - Non-current assets increased from **HKD 4.89 billion** to **HKD 5.30 billion**, primarily due to new art investments valued at **HKD 283 million**[4](index=4&type=chunk) - Current assets decreased from **HKD 6.19 billion** to **HKD 5.03 billion**, mainly due to a reduction in debt investments and investments at fair value through profit or loss[4](index=4&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) The company refined its investment strategies, actively managed its portfolio with **HKD 1.23 billion** in new investments and **HKD 1.74 billion** in exits, and significantly improved its financial position with enhanced liquidity and reduced debt levels [Business Overview and Investment Strategy](index=10&type=section&id=Business%20Overview%20and%20Investment%20Strategy) The company redefined its core investment strategies focusing on non-listed equity, debt, fund, and listed equity, with **HKD 1.23 billion** in new investments and **HKD 1.74 billion** in exits, targeting high-growth sectors like clean energy and AI for stable asset appreciation - The company re-established four core investment strategies: non-listed equity investments, debt investments, fund investments, and listed equity investments, to build a balanced and efficient investment portfolio[24](index=24&type=chunk)[28](index=28&type=chunk) - Investment focus is on high-growth potential industries such as clean energy and artificial intelligence, with active attention to cutting-edge areas like Web 3.0 and quantum computing[26](index=26&type=chunk) Annual Investment Activity Overview | Item | Amount (HKD Billions) | | :--- | :--- | | New Investments | 1.23394 | | Exited Investments | 1.74173 | [Investment Portfolio Review](index=11&type=section&id=Investment%20Portfolio%20Review) The investment portfolio is primarily composed of non-listed equity (**51.6%**), debt (**28.68%**), and fund investments (**16.0%**), with non-listed equity being the core at **HKD 5.28 billion**, providing stable interest income from debt and strategic exposure to emerging technologies through funds Asset Distribution by Investment Strategy | Investment Strategy | Proportion | | :--- | :--- | | Non-listed Equity Investments | 51.60% | | Debt Investments | 28.68% | | Fund Investments | 16.00% | | Art Investments | 2.77% | | Listed Equity Investments | 0.94% | | Other | 0.01% | [Non-listed Equity Investments](index=12&type=section&id=Non-listed%20Equity%20Investments) Non-listed equity investments, totaling **HKD 5.28 billion**, form the core strategy, including long-term core holdings like Carbon Cloud Intelligent and Southern East Asia, alongside other significant private equity investments such as Jiedaibao and Honghu Education Major Long-term Core Holdings (as at March 31, 2025) | Company Name | Sector | Cost (HKD Billions) | Carrying Value (HKD Billions) | | :--- | :--- | :--- | :--- | | Carbon Cloud Intelligent | Healthcare | 1.089 | 0.690 | | Southern East Asia | Financial Services | 0.060 | 0.122 | | Oriental Patron Asset Management | Financial Services | 0.059 | 0.027 | Other Major Non-listed Equity Investments (as at March 31, 2025) | Company Name | Sector | Cost (HKD Billions) | Carrying Value (HKD Billions) | | :--- | :--- | :--- | :--- | | Jiedaibao | FinTech | 0.900 | 0.983 | | Hengjia Meilian | Other | 0.450 | 0.443 | | Honghu Education | Smart Education | 1.705 | 1.587 | [Debt, Fund & Listed Equity Investments](index=19&type=section&id=Debt%2C%20Fund%20%26%20Listed%20Equity%20Investments) The debt investment portfolio of **HKD 2.94 billion** generated **HKD 264 million** in interest income, while fund investments of **HKD 1.64 billion** primarily target emerging tech via Era Leading Fund, complemented by **HKD 96.69 million** in listed equity for liquidity - Debt investment holdings amounted to **HKD 2.94 billion**, with new investments of **HKD 621 million** and exits of **HKD 1.40 billion** this year, generating **HKD 264 million** in interest income[47](index=47&type=chunk) - Fund investment holdings amounted to **HKD 1.64 billion**, primarily invested in Era Leading Fund, which focuses on non-listed equity in cybersecurity, artificial intelligence, and integrated circuits[48](index=48&type=chunk)[49](index=49&type=chunk) - Listed equity investment holdings amounted to **HKD 96.69 million**, with active buying and selling operations conducted this year to enhance liquidity[51](index=51&type=chunk) [Financial Review & Outlook](index=20&type=section&id=Financial%20Review%20%26%20Outlook) Net asset value slightly increased to **HKD 9.95 billion**, with net profit rising to **HKD 64.16 million** despite lower total revenue, driven by improved associate performance and cost control, while liquidity significantly improved and debt levels substantially reduced [Financial Condition & Performance](index=20&type=section&id=Financial%20Condition%20%26%20Performance) Net asset value reached **HKD 9.95 billion**, with the debt-to-equity ratio improving to **0.07**, while net profit increased to **HKD 64.16 million**, influenced by debt investment gains, realized investment gains, and associate profits, partially offset by unrealized investment losses Key Financial Ratios | Indicator | As at March 31, 2025 | As at March 31, 2024 | | :--- | :--- | :--- | | Debt-to-equity ratio (Total Liabilities/Total Equity) | 0.07 | 0.15 | - This year's performance was influenced by multiple factors: positive factors included debt investment income, realized investment gains, and profits from associates; negative factors included unrealized investment losses, credit loss provisions, financing costs, and operating expenses[54](index=54&type=chunk) - Operating and administrative expenses decreased from **HKD 61.94 million** to **HKD 37.70 million**, mainly due to reduced transaction fees from the redemption of listed bonds and lower staff costs[57](index=57&type=chunk) [Liquidity & Capital Structure](index=22&type=section&id=Liquidity%20%26%20Capital%20Structure) Liquidity significantly improved with cash balances increasing to **HKD 58.47 million** and total borrowings substantially reduced to **HKD 643 million**, leading to a lower debt-to-equity ratio of **6.47%** and a higher current ratio of **7.48 times**, indicating enhanced short-term solvency Liquidity and Debt Indicators | Indicator | As at March 31, 2025 | As at March 31, 2024 | | :--- | :--- | :--- | | Bank and Cash Balances | HKD 58.47 million | HKD 45.01 million | | Total Borrowings | HKD 643 million | HKD 1.417 billion | | Gearing Ratio | 6.47% | 14.30% | | Current Ratio | 7.48 times | 4.35 times | - The Board believes that existing operating and borrowing resources are sufficient to meet foreseeable future investment and working capital needs[61](index=61&type=chunk) [Other Key Information](index=22&type=section&id=Other%20Key%20Information) The company actively managed its investment portfolio with significant additions and exits, including a major post-period disposal of Southern East Asia equity, while maintaining a no-dividend policy and largely complying with corporate governance standards [Significant Investment Changes & Subsequent Events](index=23&type=section&id=Significant%20Investment%20Changes%20%26%20Subsequent%20Events) The company actively adjusted its investment portfolio with **HKD 1.23 billion** in new investments and **HKD 1.74 billion** in exits, notably in debt investments, and post-period, proposed to dispose of its **22.5%** stake in Southern East Asia for **HKD 1.11 billion** to a major shareholder Major Investment Changes for the Year (HKD Millions) | Investment Category | New/Additional Investments | Exited/Disposed Investments | | :--- | :--- | :--- | | Non-listed Equity Investments | 270.00 | 5.77 | | Debt Investments | 621.10 | 1,398.95 | | Fund Investments | 0.59 | 96.59 | | Listed Equity Investments | 58.94 | 240.42 | | Art Investments | 283.17 | – | | **Total** | **1,233.94** | **1,741.73** | - Subsequent to the reporting period, the company proposes to dispose of its **22.5%** equity interest in Southern East Asia to Guo Fu Quantum, a connected person, for a consideration of **HKD 1.11 billion**, to be settled by receiving shares in Guo Fu Quantum; this transaction constitutes a very substantial disposal and connected transaction, subject to EGM approval[73](index=73&type=chunk)[74](index=74&type=chunk) [Dividend Policy & Corporate Governance](index=22&type=section&id=Dividend%20Policy%20%26%20Corporate%20Governance) The board resolved not to declare a final dividend for the year, and the company generally complied with corporate governance codes, with one noted deviation regarding the provision of written management accounts to the board - The Board resolved not to pay any final dividend for the year ended March 31, 2025[59](index=59&type=chunk)[18](index=18&type=chunk) - The company complied with the Corporate Governance Code, with one deviation: written management accounts were not provided to the Board monthly, but rather through regular verbal briefings[76](index=76&type=chunk) - The audited consolidated financial statements for the year have been reviewed by the Audit Committee[79](index=79&type=chunk)

Investment Strategy - The investment strategy consists of four pillars: coreholding-centered unlisted equity investments, debt investments, fund investments, and listed equity investments, aimed at achieving a balanced and efficient portfolio[14]. - The company has undergone comprehensive adjustments and optimization of its investment strategy since last year, reflecting a proactive approach to market conditions[14]. - The focus on unlisted equity investments aims to identify and invest in companies with long-term growth potential, providing necessary capital support[15]. - Debt investment strategy is designed to achieve stable fixed income through bond purchases or loans, enhancing overall portfolio stability[15]. - Fund investment strategy leverages industry expertise and market insights from professional fund management companies to diversify investment opportunities[15]. - Listed equity investment strategy emphasizes short-term investment opportunities in both domestic and international secondary markets to balance liquidity and returns[15]. - The company aims to deliver continuous and stable investment returns to shareholders through its diversified investment strategies[15]. - The management discussion highlights the importance of comprehensive assessments of return, risk, and opportunity cost in investment decisions[6]. - The company is committed to maximizing the value of its capital and financing capability as a public entity[6]. - The company has re-established its four core investment strategies: unlisted equity investments, debt investments, fund investments, and listed equity investments[21]. - The company emphasizes investment diversity and risk diversification in response to market volatility and uncertainty[21]. Financial Performance - As of September 30, 2024, total revenue reached HK$249,745,000, an increase of 12.6% compared to HK$221,641,000 for the same period in 2023[54]. - The comprehensive income for the period ended September 30, 2024, was HK$96,876,000, compared to HK$72,502,000 for the same period in 2023, reflecting a growth of 33.6%[54]. - The company reported a dividend income and interest revenue of HK$128,897,000 for the six months ended September 30, 2024, down from HK$147,416,000 in the previous year[54]. - The Hong Kong segment generated revenue of HK$380,533,000 as of September 30, 2024, up from HK$269,908,000 as of March 31, 2024, indicating a significant increase[57]. - The Mainland China segment reported revenue of HK$304,082,000, a decrease from HK$399,831,000 in the previous period[57]. - The company’s earnings for the purpose of calculating basic and diluted earnings per share were HK$24,374,000 for the six months ended September 30, 2024, compared to HK$23,146,000 in 2023, representing a growth of 5.3%[62]. - The total comprehensive income for the period as of September 30, 2023, was HK$10,009,496,000, compared to HK$9,870,137,000 as of September 30, 2024[1]. Investment Valuation - Investments at fair value through profit or loss amounted to HK$1,730,589,000 as of September 30, 2024[46]. - The company’s fair value measurements included a discount rate range of 7.79% to 37.52% for discounted cash flows[46]. - The market comparable companies' price-to-sales ratio was reported at 64.98, indicating a potential increase in fair value[46]. - The fair value of unlisted non-voting preference shares was reported at HK$24,500,000, with a price-to-book ratio of 1.91[73]. - The Group's share of net assets from unlisted investment funds and limited partnerships was HK$1,733,915,000[73]. - The discounted cash flows for unlisted economic interests were valued at HK$1,632,000, with a discount rate of 11.70%[73]. Debt and Borrowing - The average effective interest rate on borrowings was 6.50% as of September 30, 2024, slightly down from 6.55% as of March 31, 2024[99]. - The Group's interest on borrowings for the period was HK$24,695,000, a decrease from HK$42,023,000 in the same period of the previous year, indicating a reduction of approximately 41.1%[81]. - The provision for expected credit losses (ECL) for debt investments was HK$29,224,000 for the six months ended September 30, 2024, compared to a reversal of HK$12,033,000 in the previous period[106]. - Total debt investments as of September 30, 2024, were HK$2,787,157,000, a decrease from HK$3,749,489,000 as of March 31, 2024[111]. - The tenure of debt investments ranged from 6 months to 2 years, with interest rates applied between 7.00% to 10.00% per annum[91]. Corporate Governance and Compliance - The Group's compliance with the Corporate Governance Code was confirmed, with no known issues reported[68]. - The Board is not aware of any information indicating non-compliance with the Corporate Governance Code during the reporting period[3]. - Management provided regular verbal reports to Directors, although monthly management accounts were not circulated, which was deemed sufficient for performance assessment[70]. Employee and Management Changes - The Group had 30 employees as of September 30, 2024, a decrease from 32 employees as of March 31, 2024[194]. - Total staff costs for the period amounted to HK$8.41 million, compared to HK$8.71 million for the six months ended 30 September 2023[194]. - Key management personnel compensation increased to HK$985,000 for the six months ended September 30, 2024, compared to HK$905,000 in the same period of 2023, reflecting a growth of approximately 8.8%[153]. - Dr. Liu Zhiwei resigned as an executive director on 9 October 2024[171]. - Mr. Chen Yuming resigned as an independent non-executive director effective 4 September 2024[179]. - Mr. Yang Songbin was appointed as an independent non-executive director and chairman of the audit committee effective 4 September 2024[181]. Investment Disposals - The company completed the disposal of Block AI Company Limited for a consideration of HK$15,000,000 on April 9, 2024[120]. - The total consideration for the disposal of Prestige Power Global Limited (PPG) was HK$865,863,000, completed on September 29, 2023[145]. - The gain on the disposal of PPG was HK$60,000, while the loss on the disposal of another subsidiary was HK$30,010[146]. - The net cash inflow from the disposal of Block AI Company Limited was HK$14,952,000 after accounting for cash and cash equivalents disposed of[121]. - The total liabilities disposed of in the recent transactions amounted to HK$54,278,000[126]. Future Outlook and Risks - The global economic outlook remains uncertain for the rest of 2024 due to changes in international situations affecting major economies[21]. - As of September 30, 2024, there were no plans for material investments or capital assets, but potential negotiations for investments may occur[1]. - The Group did not purchase, sell, or redeem any of its securities during the reporting period[1]. - There were no significant events after the reporting period that would impact the Group's financial position[2]. - The Group's maximum exposure to foreign exchange risk was RMB2,618.19 million, equivalent to HK$2,916.28 million[1]. - The Group held certain financial assets denominated in USD, with minimal exposure to USD foreign exchange risk due to the pegging of HKD to USD[1].

Financial Performance - For the six months ended September 30, 2024, the company reported a revenue of HKD 249,745,000, representing an increase of 12.7% compared to HKD 221,641,000 in the same period of 2023[4] - The company achieved a pre-tax profit of HKD 24,374,000, up from HKD 23,146,000 in the previous year, indicating a growth of 5.3%[6] - The company reported a net profit of HKD 24,374,000 for the six months ended September 30, 2024, compared to HKD 23,146,000 for the same period in 2023[29] - Basic and diluted earnings per share for the period were both HKD 0.23, compared to HKD 0.22 in the same period last year, marking a 4.5% increase[6] - The company's total revenue for the period was HKD 128.90 million, a decrease of 12.56% compared to HKD 147.42 million in the same period last year[88] - The company recorded a profit of HKD 24.37 million for the period, compared to HKD 23.15 million in the previous year, indicating a growth of 5.25%[88] Assets and Liabilities - The total equity of the company as of September 30, 2024, was HKD 10,009,496,000, compared to HKD 9,912,620,000 as of March 31, 2024, reflecting an increase of 1.0%[8] - The company's total assets decreased to HKD 10,528,758,000 from HKD 11,422,397,000, a decline of 7.8%[9] - The company’s total liabilities decreased significantly from HKD 1,509,777,000 to HKD 519,262,000, a reduction of 65.5%[12] - The debt-to-equity ratio improved to 4.47% from 14.30% as of March 31, 2024, indicating a stronger capital structure[95] Cash and Investments - The company’s cash and cash equivalents increased to HKD 87,361,000 from HKD 45,006,000, representing a growth of 94.3%[9] - The company reported a net unrealized loss on investments of HKD 101,102,000 for the period, a decrease from HKD 112,148,000 in the previous year[4] - The company has recognized expected credit losses of HKD 29,224,000 for debt investments during the period, compared to a reversal of HKD 12,033,000 in the previous year[28] - The debt investment portfolio reached HKD 2.78716 billion, with new investments of HKD 165 million and exits totaling HKD 1.12801 billion during the period[70] - The company’s share of profits from associates and joint ventures was HKD 25.05 million, up from HKD 20.19 million, marking an increase of 24.00%[92] Investment Strategy - The company has adjusted its investment strategy to focus on four core strategies: non-listed equity investments, debt investments, fund investments, and listed equity investments[35] - The investment portfolio is diversified into four strategies: non-listed equity investments (54%), bond investments (27%), fund investments (18%), and listed equity investments (1%) as of September 30, 2024[40] - The company focuses on non-listed equity investments in firms with long-term growth potential, with a total holding of HKD 5.48154 billion in this category as of September 30, 2024[44] - The company aims to enhance its investment portfolio's diversity and stability by investing in various asset classes, including non-listed equities, bonds, funds, and listed equities[36] - The investment strategy has been adjusted to focus on emerging technology sectors, aiming to capitalize on industry trends amid global economic uncertainties[36] Operational Highlights - The company did not incur any taxable profits for the periods ended September 30, 2024, and 2023, resulting in no income tax provisions[26] - The company’s operating and administrative expenses decreased to HKD 18.25 million from HKD 32.03 million, a reduction of 43.00%[92] - The group had a total employee cost of HKD 8.41 million, a decrease from HKD 8.71 million in the previous six months[105] Corporate Governance - The audit committee consists of three independent non-executive directors who reviewed the group's accounting principles and internal controls[117] - The group has adopted a policy for directors and employees regarding securities trading, confirming compliance during the period[115] - The group has no arrangements for directors or senior executives to acquire shares or bonds during the period[116] Future Outlook - As of September 30, 2024, the group had no significant investment or capital asset plans, but may engage in discussions for potential investments[109] - The mid-term performance announcement will be published on the Hong Kong Stock Exchange and the company's website, covering the six months ending September 30, 2024[124]

Company Overview - The company changed its name to Wealthink AI-Innovation Capital Limited to reflect its strategic focus on intelligent technology and to enhance its brand image[4]. - The Company has been operating as an investment company since its incorporation on July 26, 2002[185]. Investment Strategy - The investment strategy for FY2023/2024 includes core-holding-centered unlisted equity investment, debt investment, fund investment, and listed equity investment[10]. - The company established a four-core investment strategy focusing on core-holding-centered unlisted equity investment, debt investment, fund investment, and listed equity investment[22]. - The investment strategy was adjusted in response to the volatile international trading environment and geopolitical risks affecting China's economy[22]. - The Company’s principal investment objective is to achieve earnings through capital appreciation[185]. - The Group's main investment objective is to achieve medium to long-term capital appreciation through a diversified global investment portfolio[162]. Financial Performance - The Group recorded total revenue of HK$308.33 million for the year, representing an increase of 59.97% compared to HK$192.74 million in the same period last year[97]. - Profit for the year was HK$53.65 million, down from HK$146.38 million in the previous year, impacted by net changes in unrealized losses and finance costs[97]. - The Group's net asset value as of March 31, 2024, was HK$9,912.62 million, or HK$0.94 per share, compared to HK$10,010.76 million and HK$0.95 per share as of March 31, 2023[106]. - The Group's total loans increased to HK$1,417.41 million as of March 31, 2024, compared to HK$1,280.39 million in the previous year[139]. - The Group's investments in associates and joint ventures decreased by 28.79% to HK$656.50 million, primarily due to losses from Treasure Up Ventures and disposals during the year[97]. Investment Holdings - As of March 31, 2024, the company's holdings in core holding companies amounted to HK$934.00 million, with iCarbonX Group Limited being a significant investment[12]. - Wealthink AI's unlisted equity investments totaled HK$4,329.53 million as of March 31, 2024, with new investments of HK$1,707.63 million and divestments of HK$156.79 million during the year[37]. - Wealthink AI's holdings in unlisted equity investments amounted to HK$5,263.53 million, representing a significant investment strategy focus[51][52]. - Wealthink AI's debt investment portfolio reached HK$37.4949 billion as of March 31, 2024, with new investments of HK$14.7195 billion during the year[47]. - As of March 31, 2024, Wealthink AI's holdings in the fund investment category amounted to HK$1,755.43 million, with new investments of HK$489.00 million and exits totaling HK$1,675.29 million during the year[90]. Risk Management - The company emphasizes risk management and has strengthened its internal control and compliance management over the past year[4]. - The company conducted a comprehensive business risk assessment to prioritize major risk points and prepare corresponding risk control plans[4]. - The company believes that the recovery of the Chinese economy will bring new vitality to the investment market, enhancing its project selection and risk management capabilities[5]. - The company emphasized risk management and enhanced internal controls to mitigate various risks, ensuring stable development of investment operations[20]. Market and Economic Outlook - The company aims to identify startups with disruptive technologies and explore strategic cooperation opportunities with industry leaders in AI and big data[4]. - The biotechnology industry is expected to have broad market prospects, contributing to the Group's investment strategy in advanced manufacturing and technology sectors[104]. - The Group anticipates that the further liberalization of the financial market will present new development opportunities for 恒嘉美聯, expected to yield medium-term returns[67]. Management and Governance - Dr. Wang Qin appointed as Chairman of the Board and Chairman of the Nomination Committee on June 8, 2023, bringing over 30 years of experience in finance and investment[156]. - The Company has made appropriate insurance arrangements for its Directors and senior management against legal actions arising from corporate activities[166]. - The report confirms that all independent non-executive Directors are considered independent according to the relevant regulations[168]. - The Directors do not recommend the payment of a dividend for the year[161]. Employee and Operational Insights - As of 31 March 2024, the Group had 32 employees, a decrease from 33 employees as of 31 March 2023[149]. - Total staff costs for the year amounted to HK$16.10 million, down from HK$17.03 million in FY2022/2023, representing a decrease of approximately 5.4%[149]. - Operating and administrative expenses decreased to HK$61.94 million from HK$77.23 million in FY2022/2023, primarily due to reduced depreciation from office relocation[138].

Financial Performance - The total revenue for the year was HKD 308.33 million, an increase of 59.97% compared to HKD 192.74 million in the previous year[61]. - The company recorded a profit of HKD 53.65 million for the year, compared to HKD 146.38 million in the previous year[61]. - For the fiscal year ending March 31, 2024, the operating profit was HKD 240,071,000, an increase from HKD 137,013,000 in the previous year, representing a growth of 75.2%[88]. - The total revenue for the year was HKD 522,006,000, compared to HKD 469,589,000 in the previous year, indicating an increase of 11.1%[95]. - The net profit attributable to the company's owners for the year was HKD 53,653,000, down from HKD 146,383,000, reflecting a decrease of 63.4%[88]. - The company's earnings per share (EPS) for the year was HKD 0.51, a decrease from HKD 1.80 in the previous year, representing a decline of 71.7%[88]. - The company did not declare or recommend any dividends for the year 2024, consistent with 2023[111]. - The group received dividends amounting to HKD 61.775 million, an increase from HKD 41.536 million in the previous year[166]. Investment Activities - The company made new investments totaling HKD 3.83748 billion and exited investments worth HKD 3.33707 billion during the fiscal year[7]. - The largest investment in the non-listed equity category is in Sichuan Honghu Zhi Yuan Education Management Group, with a holding amount of HKD 1.632 billion as of March 31, 2024[23]. - The company holds 22.5% of the issued share capital of Southern Eastern Asset Management, valued at HKD 111.87 million, reflecting an increase of HKD 1.55 million from the previous year[14]. - The company has a 30% stake in Dongying Asset Management, with a holding amount of HKD 24.5 million as of March 31, 2024[17]. - The company’s investment in Lending Treasure amounts to HKD 1.08213 billion, representing 2.49% of the issued shares[19]. - The company has committed HKD 600 million to acquire a 19.9% stake in Hengjia Meilian[21]. - The company has invested HKD 1.70763 billion in non-listed equity investments during the year, with an exit investment of HKD 156.79 million[154]. - The total holding in non-listed equity investments reached HKD 4.32953 billion as of March 31, 2024[154]. - The group’s investment in non-listed equity reached HKD 5.26353 billion as of March 31, 2024, focusing on companies with long-term growth potential[176]. - The group’s debt investment holdings amounted to HKD 3.74949 billion as of March 31, 2024, with new investments of HKD 1.47195 billion and exits totaling HKD 1.05428 billion during the year[191]. - The group’s fund investment holdings reached HKD 1.75543 billion as of March 31, 2024, with new investments of HKD 489 million and exits of HKD 1.67529 billion during the year[193]. Financial Position - As of March 31, 2024, the net asset value of the company is HKD 9,912,620,000, a decrease from HKD 10,010,755,000 in 2023[5]. - The company's cash and bank balance as of March 31, 2024, was HKD 45.01 million, down from HKD 108.36 million a year earlier[32]. - As of March 31, 2024, the company's total equity was HKD 99.13 billion, down from HKD 100.11 billion a year earlier[67]. - The total assets as of March 31, 2024, were HKD 11,422,397,000, slightly up from HKD 11,366,205,000 in the previous year, showing a growth of 0.5%[90]. - The total liabilities increased to HKD 1,509,777,000 from HKD 1,355,450,000, marking an increase of 11.4%[90]. - The company's cash and bank balances decreased to HKD 45,006,000 from HKD 108,360,000, a decline of 58.5%[97]. - The company's net asset value per share was HKD 0.94, down from HKD 0.95 in the previous year, reflecting a decrease of 1.1%[90]. Operational Efficiency - Operating and administrative expenses totaled HKD 61.94 million, a decrease from HKD 77.23 million in the previous fiscal year[34]. - The company had 32 employees as of March 31, 2024, with total employee costs amounting to HKD 16.10 million for the year[42]. - The company incurred a loss of HKD 6,214,000 due to goodwill impairment from an investment in an associate in 2024[107]. - The expected credit loss provision for debt investments and receivables was HKD 3,956,000 in 2024, a significant improvement from a loss of HKD 108,967,000 in 2023[133]. Strategic Focus - The company’s investment strategy has been adjusted to focus on four core strategies: non-listed equity investment, debt investment, fund investment, and listed equity investment[6]. - The investment strategy focuses on diverse asset classes, including non-listed equity, debt, funds, and listed equity, to enhance portfolio stability and returns[143]. - The company aims to leverage emerging technology trends to strengthen its strategic execution in the tech sector[143]. - The company expects to benefit from the ongoing growth of the Chinese private equity market and the opening of its financial markets[152]. - The group believes that investing in the Era Navigation Fund allows indirect participation in China's emerging technology industry, with expectations of considerable mid-term investment returns[194]. - The focus on specialized and innovative enterprises has become a crucial force in stimulating innovation and improving the ecological industry in China[195]. - The group anticipates that investing in the specialized and innovative fund will provide diversified investment opportunities and potential returns from various high-growth industries[195]. Market Position and Recognition - The group aims to become the largest personal lending and supply chain financing service platform in China through its internet fintech company[186]. - The group has established strategic partnerships in Singapore, Europe, and mainland China to expand its client base and service offerings[183]. - The group has received multiple awards for its asset management products, including five awards at the 2024 "Best of the Best Awards" by Asian Asset Management[181].

Financial Performance - The company reported a profit or loss of HK$163,585 for the reporting period, with financial liabilities at fair value through profit or loss recorded at (HK$3,892)[27]. - Wealthink Al-Innovation Capital Limited invested HK$34.9846 billion during the period, with HK$32.9932 billion in exit investments primarily from listed securities, funds, private equity, and debt investments[89]. - The company reported a recurring fair value measurement total of HK$6,654,331, with liabilities at fair value through profit or loss recorded at (HK$3,892)[27]. Investment Strategy - The investment strategy includes private equity, portfolio management, and trading, focusing on long-term core holdings and medium-term returns[88]. - Wealthink Al has adjusted its investment strategy to increase fixed-income investments to create more stable returns amid economic challenges[111]. - The company emphasizes a three-pillar investment strategy: core-holding-centered private equity, portfolio management, and trading[116]. Corporate Identity and Name Change - The company has undergone a name change from "Wealthking Investments Limited" to "Wealthink AI-Innovation Capital Limited" effective August 28, 2023, to reflect its focus on innovation-driven investment strategies[35]. - The stock short names for trading have changed to "WEALTHINK AI" in English and "華科智能投資" in Chinese, effective October 9, 2023, while the stock code remains unchanged as "1140"[36]. Asset Management and Holdings - The total recurring fair value measurements as of September 30, 2023, amounted to HK$6,371,470, with listed equity securities contributing HK$534,476 and unlisted equity investments contributing HK$3,113,682[11]. - The total assets measured at fair value include unlisted investment funds and limited partnerships amounting to HK$3,000,530[27]. - As of September 30, 2023, the four main sectors of the company's portfolio were Fixed-Income, Smart Education, Technology, Media and Telecom (TMT), and Fintech, representing 75.60% of total investment holdings[117]. Risk Management - The maximum foreign exchange risk exposure as of September 30, 2023, was RMB 3.01906 billion, equivalent to HK$3.24020 billion, indicating an increase from RMB 2.03941 billion (HK$2.32901 billion) as of March 31, 2023[43]. - The Group's portfolio of debt instruments recorded provisions for expected credit losses under HKFRS 9, indicating a proactive approach to risk management[192]. - Wealthink Al maintains regular communication with bond issuers and loan borrowers to assess repayment abilities for expected credit loss provisions[192]. Investment Portfolio - As of September 30, 2023, the investment portfolio's major sectors included fixed income, smart education, technology, media, and telecommunications, accounting for 75.60% of total investments[90]. - The company's holdings in private equity amounted to HK$3,727.87 million as of September 30, 2023, with long-term core holdings including iCarbonX, CSOP, and OPIM[124]. - The Group's holdings in listed securities in the portfolio management category amounted to HK$11.58 million as of 30 September 2023[187]. Major Investments - The Group holds a 7.73% equity interest in iCarbonX, with a carrying value of HK$911.34 million as of September 30, 2023[99]. - CSOP, a major investment, has a market share of over 96.6% in size and 99.3% in average daily turnover among all Hong Kong Leveraged and Inverse Products[106]. - Wealthink AI's investment in iCarbonX is valued at HK$911.34 million, representing a 7.73% equity ownership, highlighting its focus on life sciences and AI[156]. Future Outlook - The anticipated growth of OPIM is supported by China's increasing scale of private funds in overseas markets, expected to maintain steady growth in fund numbers and asset scale[172]. - Jiedaibao is building a complete Fintech ecosystem with licenses for online payment, commercial banking, and internet microloans, which is expected to generate considerable medium-term returns[180]. - The investment in Jiedaibao is expected to yield significant medium-term returns due to its strong market share in Mainland China[182].

[Unaudited Interim Results Announcement](index=1&type=section&id=Unaudited%20Interim%20Results%20Announcement) [Disclaimer](index=1&type=section&id=Disclaimer) The HKEX and Stock Exchange disclaim responsibility for the announcement's content, accuracy, completeness, and any resulting losses - The HKEX and Stock Exchange disclaim responsibility for the announcement's content, make no statements, and accept no liability for any losses[29](index=29&type=chunk) [Company Overview](index=1&type=section&id=Company%20Overview) Wealthink AI-Innovation Capital Limited announces its unaudited condensed results for the six months ended September 30, 2023 - The company has been renamed **Wealthink AI-Innovation Capital Limited** and announced its unaudited condensed results for the six months ended September 30, 2023[30](index=30&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) [Profit or Loss Overview](index=1&type=section&id=Profit_Loss_Summary) Total revenue significantly increased by 71.62% to HKD 147.42 million, but profit for the period substantially decreased to HKD 23.15 million, offset by unrealized and realized losses from investments at fair value through profit or loss Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | Six Months Ended September 30, 2023 (HKD thousands) | Six Months Ended September 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 147,416 | 85,904 | | Other income and gains, net | 84,570 | 7 | | Net change in unrealized investment (losses)/gains at fair value through profit or loss | (112,148) | (29,262) | | Net realized investment (losses)/gains on disposal/distribution | (45,141) | 21,510 | | Operating profit | 45,515 | 138,841 | | Share of profits of associates and joint ventures | 20,192 | 104,257 | | Profit for the period attributable to owners of the Company | 23,146 | 213,210 | | Basic earnings per share (HK cents) | 0.22 | 3.25 | - Total revenue increased by **71.62%** year-on-year to **HKD 147.42 million**, primarily from debt investment income[123](index=123&type=chunk)[124](index=124&type=chunk) - Profit for the period significantly decreased to **HKD 23.15 million** from HKD 213.21 million in the prior period, mainly offset by **HKD 112.15 million** in unrealized investment losses and **HKD 45.14 million** in realized losses from investments at fair value through profit or loss[123](index=123&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Financial Position Overview](index=3&type=section&id=Financial_Position_Summary) As of September 30, 2023, total assets were HKD 11.138 billion, a slight decrease from March 31, 2023, with net assets at HKD 9.870 billion and net asset value per share at HKD 0.94 Condensed Consolidated Statement of Financial Position (Summary) | Indicator | September 30, 2023 (HKD thousands) | March 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 5,659,239 | 5,738,619 | | Current assets | 5,479,227 | 5,627,586 | | **Total assets** | **11,138,466** | **11,366,205** | | **Equity and Liabilities** | | | | Total equity | 9,870,137 | 10,010,755 | | Current liabilities | 1,260,175 | 1,347,468 | | Non-current liabilities | 8,154 | 7,982 | | **Total liabilities** | **1,268,329** | **1,355,450** | | **Total equity and liabilities** | **11,138,466** | **11,366,205** | | Net asset value per share | HKD 0.94 | HKD 0.95 | - Total assets were **HKD 11.138 billion**, a **2.00% decrease** from HKD 11.366 billion as of March 31, 2023[33](index=33&type=chunk) - Net asset value was **HKD 9.870 billion**, with net asset value per share at **HKD 0.94**, a slight decrease from HKD 10.011 billion and HKD 0.95 respectively as of March 31, 2023[26](index=26&type=chunk)[150](index=150&type=chunk) - Debt investments increased by **6.65%** to **HKD 3.5915 billion**, primarily due to new investments during the period[122](index=122&type=chunk) - Bank and cash balances significantly decreased to **HKD 34.38 million** from HKD 108.36 million as of March 31, 2023[131](index=131&type=chunk)[153](index=153&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Basis of Preparation](index=5&type=section&id=1.%20Basis%20of%20Preparation) These condensed consolidated financial statements are prepared under HKAS 34 and Listing Rules, consistent with prior annual financial statements - The condensed consolidated financial statements are prepared in accordance with **HKAS 34** and the Listing Rules[62](index=62&type=chunk) - Accounting policies and methods of computation are consistent with the annual financial statements for the year ended March 31, 2023[27](index=27&type=chunk) [2. Adoption of New and Revised HKFRSs](index=5&type=section&id=2.%20Adoption%20of%20New%20and%20Revised%20HKFRSs) The Group adopted all new and revised HKFRSs effective April 1, 2023, without significant changes to accounting policies or financial statement presentation, and is evaluating the impact of standards not yet effective - The adoption of new and revised HKFRSs did not result in significant changes to accounting policies or financial statement presentation[3](index=3&type=chunk) - The Group is evaluating the impact of new and revised HKFRSs not yet effective, but has not yet determined if there will be a significant impact[4](index=4&type=chunk) [3. Turnover and Revenue](index=5&type=section&id=3.%20Turnover%20and%20Revenue) Turnover, comprising dividend income, interest income, and sales proceeds from investments at fair value through profit or loss, reached HKD 221.641 million, primarily driven by a 73.71% increase in interest income to HKD 147.416 million - Turnover is defined as the sum of dividend income, interest income, and gross proceeds from the sale/redemption of investments at fair value through profit or loss[5](index=5&type=chunk) Turnover and Revenue Analysis | Indicator | Six Months Ended September 30, 2023 (HKD thousands) | Six Months Ended September 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Dividend income | – | 1,038 | | Interest income | 147,416 | 84,866 | | Total revenue | 147,416 | 85,904 | | Gross proceeds from sale/redemption of investments at fair value through profit or loss | 74,225 | 125,289 | | Turnover | 221,641 | 211,193 | - Interest income increased by **73.71%** year-on-year to **HKD 147.416 million**, mainly from debt instruments and bank time deposits[6](index=6&type=chunk)[154](index=154&type=chunk) [4. Segment Information](index=6&type=section&id=4.%20Segment%20Information) The Group identifies only one operating segment, investment holding, thus no segment disclosures are presented, while geographical revenue shows significant growth in Hong Kong, Mainland China, and the US - The Group identifies only investment holding as its sole operating segment, therefore no segment disclosures are presented[8](index=8&type=chunk) Geographical Revenue Analysis | Region | Six Months Ended September 30, 2023 (HKD thousands) | Six Months Ended September 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong | 111,875 | 57,292 | | Mainland China | 33,289 | 26,786 | | United States | 2,252 | 1,826 | | **Total Revenue** | **147,416** | **85,904** | Revenue from Major Debt Investments | Debt Investment | Six Months Ended September 30, 2023 (HKD thousands) | Six Months Ended September 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Debt Investment A | 24,389 | – | | Debt Investment B | 20,305 | 12,058 | | Debt Investment C | 19,403 | 9,092 | | Debt Investment D | | 16,362 | | Debt Investment E | | 9,212 | Revenue amounts are less than 10% of the total revenue for the respective period. [5. Other Income and Gains, Net](index=7&type=section&id=5.%20Other%20Income%20and%20Gains,%20Net) Other income and gains, net, significantly increased to HKD 84.57 million for the six months ended September 30, 2023, primarily from a net gain on disposal of a subsidiary of HKD 84.308 million Other Income and Gains, Net Analysis | Indicator | Six Months Ended September 30, 2023 (HKD thousands) | Six Months Ended September 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Net gain on disposal of a subsidiary | 84,308 | – | | Others | 262 | 7 | | **Total** | **84,570** | **7** | - Other income and gains, net, primarily refers to the **HKD 84.81 million** net gain on disposal of a subsidiary during the period[155](index=155&type=chunk) [6. Income Tax Expense](index=7&type=section&id=6.%20Income%20Tax%20Expense) No income tax provision was made for the period as the Group did not generate any assessable profits for the six months ended September 30, 2023, or 2022 - No assessable profits were generated during the current or prior periods, hence no income tax provision was made[13](index=13&type=chunk) [7. Profit for the Period](index=8&type=section&id=7.%20Profit%20for%20the%20Period) Profit for the period is stated after deducting depreciation, expected credit loss reversals, and employee costs, with significant reductions in depreciation and expected credit loss reversals, and a slight increase in employee costs Profit for the Period Adjustment Items | Indicator | Six Months Ended September 30, 2023 (HKD thousands) | Six Months Ended September 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Depreciation of equipment | 1,019 | 2,942 | | Depreciation of right-of-use assets | 3,559 | 15,562 | | Expected credit loss (reversal)/provision — Debt investments | (12,033) | (97,829) | | Expected credit loss (reversal)/provision — Trade and other receivables, loans and interest receivables | 825 | (5,701) | | Total expected credit loss (reversal)/provision | (11,208) | (103,530) | | Employee costs (including directors' emoluments) | 8,711 | 8,336 | - Expected credit loss allowance reversal significantly decreased to **HKD 11.21 million** from HKD 103.53 million in the prior period, mainly due to a change in the expected credit loss allowance rate[15](index=15&type=chunk)[157](index=157&type=chunk) - Employee costs slightly increased to **HKD 8.711 million** from HKD 8.336 million in the prior period[15](index=15&type=chunk) [8. Earnings Per Share](index=8&type=section&id=8.%20Earnings%20Per%20Share) Basic and diluted earnings per share for the six months ended September 30, 2023, significantly decreased to 0.22 HK cents from 3.25 HK cents in the prior period, primarily due to reduced profit Basis for Earnings Per Share Calculation | Indicator | Six Months Ended September 30, 2023 | Six Months Ended September 30, 2022 | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted earnings per share (HKD thousands) | 23,146 | 213,210 | | Weighted average number of ordinary shares for basic and diluted earnings per share (thousands of shares) | 10,520,325 | 6,560,757 | | Basic and diluted earnings per share (HK cents) | 0.22 | 3.25 | - Basic and diluted earnings per share significantly decreased to **0.22 HK cents**, primarily due to reduced profit for the period[18](index=18&type=chunk) - The effect of all potential ordinary shares was anti-dilutive[18](index=18&type=chunk) [9. Trade and Other Receivables and Loans](index=9&type=section&id=9.%20Trade%20and%20Other%20Receivables%20and%20Loans) Total trade and other receivables and loans significantly decreased to HKD 28.024 million as of September 30, 2023, from HKD 114.516 million, with unsecured loans disposed of and dividends receivable settled Trade and Other Receivables and Loans Analysis | Indicator | September 30, 2023 (HKD thousands) | March 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Unsecured loans | – | 45,102 | | Trade receivables | 1,089 | 1,089 | | Amounts due from associates, joint ventures and related companies | 26,935 | 26,789 | | Dividends receivable | – | 41,536 | | **Total** | **28,024** | **114,516** | - Unsecured loans were disposed of during the period with the sale of a subsidiary[21](index=21&type=chunk) - Expected credit loss allowance for amounts due from associates decreased significantly from HKD 2.541 million in the prior period to **HKD 7 thousand** in the current period[23](index=23&type=chunk) - Dividends receivable were settled during the period[23](index=23&type=chunk) [10. Trade and Other Payables](index=11&type=section&id=10.%20Trade%20and%20Other%20Payables) As of September 30, 2023, trade and other payables exceeding one year amounted to HKD 50 thousand, remaining consistent with March 31, 2023 Ageing Analysis of Trade and Other Payables | Ageing | September 30, 2023 (HKD thousands) | March 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Over 1 year | 50 | 50 | [11. Net Asset Value Per Share](index=11&type=section&id=11.%20Net%20Asset%20Value%20Per%20Share) As of September 30, 2023, net asset value per share was HKD 0.94, a slight decrease from HKD 0.95 as of March 31, 2023, with total net asset value at HKD 9.870137 billion and unchanged issued ordinary shares - Net asset value per share was **HKD 0.94**, a slight decrease from HKD 0.95 as of March 31, 2023[26](index=26&type=chunk)[150](index=150&type=chunk) - Total net asset value was **HKD 9.870137 billion**, with the number of issued ordinary shares remaining unchanged at 10,520,324,505 shares[26](index=26&type=chunk)[163](index=163&type=chunk) [12. Dividends](index=11&type=section&id=12.%20Dividends) No dividends were paid or proposed for ordinary shareholders during the six months ended September 30, 2023, and no dividends were proposed at the end of the reporting period - No dividends were paid or proposed for ordinary shareholders during the current or prior corresponding periods[37](index=37&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) [Overview of Wealthink AI-Innovation Capital](index=12&type=section&id=Overview%20of%20Wealthink%20AI-Innovation%20Capital) Wealthink AI-Innovation Capital is a cross-border investment company focused on high-growth industries in China, leveraging long-term investment, industry, technology, and financial capital through private equity, portfolio management, and trading strategies - The company focuses on cross-border investments in **China's high-growth industries**, aiming to create value with a long-term investment perspective[47](index=47&type=chunk) - Investment strategies comprise private equity (core holdings), portfolio management, and trading and others, with returns derived from interest, dividends, and capital appreciation[47](index=47&type=chunk) [Investment Review](index=12&type=section&id=Investment%20Review) Amid China's economic downturn and weak capital markets, the Group adjusted its investment strategy, increasing fixed-income and income-generating investments, and focusing on emerging technology sectors, with HKD 3.49846 billion in new investments and HKD 3.29932 billion in disposals - Facing macroeconomic challenges, the company increased fixed-income and income-generating investments, focusing on emerging technology sectors[63](index=63&type=chunk) - New investments totaled **HKD 3.49846 billion**, primarily through private equity, debt investments, funds, and listed securities; disposals amounted to **HKD 3.29932 billion**, mainly from listed securities, funds, private equity, and debt investments[64](index=64&type=chunk)[135](index=135&type=chunk) [Investment Strategy](index=13&type=section&id=Investment%20Strategy) The Group's investment strategy is divided into private equity (core holdings), portfolio management, and trading and others, aiming to balance long-term growth, medium-term returns, and asset liquidity - The private equity strategy aims to make direct investments using proprietary capital, empowering quality enterprises with a focus on long-term core holdings[50](index=50&type=chunk) - The portfolio management strategy focuses on medium-to-long-term investments in the secondary market, fixed-income investments, and others, expected to generate medium-term returns[50](index=50&type=chunk) - The trading and other strategies aim to capture short-term investment opportunities in domestic and overseas secondary markets and other opportunistic transactions, balancing asset liquidity and return rates[50](index=50&type=chunk) [Investment Portfolio Details](index=13&type=section&id=Investment%20Portfolio%20Details) As of September 30, 2023, the Group's investment portfolio is primarily concentrated in fixed income, smart education, technology, media and telecommunications, and fintech, accounting for 75.60% of total holdings - The four major areas of the existing investment portfolio are fixed income, smart education, technology, media and telecommunications, and fintech, accounting for **75.60%** of total holdings[66](index=66&type=chunk) Investment Portfolio by Sector | Sector | Proportion | | :--- | :--- | | Fixed Income | 33.23% | | Smart Education | 15.78% | | Technology, Media and Telecommunications | 15.54% | | Fintech | 11.05% | | Financial Services | 6.32% | | Healthcare and Wellness | 9.99% | | Others | 8.09% | Investment Portfolio by Investment Horizon | Investment Horizon | Proportion | | :--- | :--- | | Less than one year | 36.72% | | One to two years | 30.43% | | Greater than five years | 16.12% | | Three to five years | 13.08% | | Two to three years | 3.65% | [Private Equity](index=14&type=section&id=Private%20Equity) As of September 30, 2023, the Group's private equity holdings amounted to HKD 3.72787 billion, comprising long-term core holdings and other private equity, with no new investments and HKD 156.79 million in disposals during the period - Private equity holdings amounted to **HKD 3.72787 billion**, divided into long-term core holdings and other private equity[93](index=93&type=chunk) - No new private equity investments were made, and disposals amounted to **HKD 156.79 million** during the period[77](index=77&type=chunk) [Long-term Core Holdings](index=14&type=section&id=Long-term%20Core%20Holdings) The Group designates iCarbonX, CSOP Asset Management, and OPIM Holdings Limited as long-term core holdings, totaling HKD 1.08229 billion, to support their development and pursue long-term investment returns - iCarbonX, CSOP Asset Management, and OPIM Holdings Limited are long-term core holdings, with a total carrying amount of **HKD 1.08229 billion**[55](index=55&type=chunk) [iCarbonX Group Limited](index=14&type=section&id=iCarbonX%20Group%20Limited) iCarbonX is a global leader in AI and precision health management, focusing on digital health and peptide chip technology, with the Group holding a 7.73% equity interest valued at HKD 911.34 million as a long-term core holding - iCarbonX is a global leader in **artificial intelligence and precision health management**, focusing on digital health management[95](index=95&type=chunk) - The Group holds a **7.73% equity interest** in iCarbonX, with a carrying amount of **HKD 911.34 million**, considered a long-term core holding[56](index=56&type=chunk)[70](index=70&type=chunk) - iCarbonX will focus on developing peptide drugs, in-vitro diagnostics, chip manufacturing, medical, and technology services in the future[57](index=57&type=chunk) [CSOP Asset Management Limited](index=15&type=section&id=CSOP%20Asset%20Management%20Limited) CSOP Asset Management is a renowned Hong Kong asset management company specializing in China investments, with the Group holding a 22.5% equity interest valued at HKD 139.95 million, reflecting its strong performance in ETF issuance and innovation - CSOP Asset Management is a renowned Hong Kong asset management company, managing over **USD 12.6 billion**, specializing in China investments[59](index=59&type=chunk) - The Group holds a **22.5% equity interest** in CSOP Asset Management, with a carrying amount of **HKD 139.95 million**, a **26.86% increase** from the previous period due to its sustained strong performance[58](index=58&type=chunk)[97](index=97&type=chunk) - CSOP Asset Management excels in ETF issuance and innovation, holding six positions among the top 10 most actively traded ETPs listed on the HKEX[98](index=98&type=chunk) [OPIM Holdings Limited](index=17&type=section&id=OPIM%20Holdings%20Limited) OPIM Holdings Limited is a leading Asian hedge fund platform managing over 35 funds with assets exceeding USD 1.5 billion, in which the Group holds a 30% equity interest and 100% non-voting preference shares, valued at HKD 31 million, with expected continuous business growth - OPIM Holdings Limited is a leading Asian hedge fund platform, managing over **35 funds** with assets exceeding **USD 1.5 billion**[101](index=101&type=chunk)[100](index=100&type=chunk) - The Group holds **30%** of issued ordinary shares and **100%** of non-voting preference shares in OPIM Holdings Limited, with a carrying amount of **HKD 31 million**[75](index=75&type=chunk)[100](index=100&type=chunk) - OPIM Holdings Limited is expected to benefit from the opening of China's financial markets, with potential for continuous business growth[76](index=76&type=chunk) [Other Private Equity](index=18&type=section&id=Other%20Private%20Equity) Other private equity holdings amounted to HKD 2.64558 billion, with no new investments and HKD 156.79 million in disposals during the period, primarily including Jiedaibao and Shanghai Hengjia Meilian - Other private equity holdings amounted to **HKD 2.64558 billion**, with no new investments and disposals of **HKD 156.79 million** during the period[77](index=77&type=chunk) [Jiedaibao Co., Ltd.](index=19&type=section&id=Jiedaibao%20Co.,%20Ltd.) Jiedaibao is an internet fintech company offering personal and corporate lending services, in which the Group holds a 2.49% equity interest valued at HKD 971.42 million, anticipating considerable medium-term returns from its growing business scale - Jiedaibao provides peer-to-peer lending and supply chain finance services, aiming to solve financing difficulties for SMEs[78](index=78&type=chunk) - The Group holds a **2.49% equity interest** in Jiedaibao, with a carrying amount of **HKD 971.42 million**[78](index=78&type=chunk)[104](index=104&type=chunk) - Jiedaibao's growing business scale is expected to bring considerable medium-term returns to the Group[79](index=79&type=chunk) [Shanghai Hengjia Meilian Development Co., Ltd.](index=20&type=section&id=Shanghai%20Hengjia%20Meilian%20Development%20Co.,%20Ltd.) Hengjia Meilian is a diversified group primarily engaged in equity investment, property investment, and commodity trading, in which the Group has invested HKD 450 million for a 14.9% equity interest, expecting development opportunities and medium-term returns from financial market liberalization - Hengjia Meilian is a diversified group primarily engaged in equity investment, property investment, and commodity trading, focusing on financial services equity investments[80](index=80&type=chunk) - The Group has invested **HKD 450 million**, holding a **14.9% equity interest** in Hengjia Meilian[80](index=80&type=chunk)[106](index=106&type=chunk) - Hengjia Meilian is expected to seize development opportunities amid financial market liberalization, bringing medium-term returns[107](index=107&type=chunk) [Portfolio Management](index=21&type=section&id=Portfolio%20Management) As of September 30, 2023, the Group's portfolio management holdings amounted to HKD 7.02928 billion, including listed securities, debt investments, fund investments, and income right investments, with HKD 3.48205 billion in new investments and HKD 3.13909 billion in disposals - Portfolio management holdings amounted to **HKD 7.02928 billion**, including listed securities, debt investments, fund investments, and income right investments[82](index=82&type=chunk) - New investments totaled **HKD 3.48205 billion**, and disposals amounted to **HKD 3.13909 billion** during the period[82](index=82&type=chunk) - The debt instrument investment portfolio recorded expected credit loss provisions, and market prices of some listed securities changed[82](index=82&type=chunk) - Debt investment interest rates ranged from **7% to 10%** (compared to 6% to 10% in the prior period), with total interest income of **HKD 147.09 million**[109](index=109&type=chunk) [Sichuan Honghu Zhiyuan Education Management Group Co., Ltd.](index=22&type=section&id=Sichuan%20Honghu%20Zhiyuan%20Education%20Management%20Group%20Co.,%20Ltd.) Honghu Education focuses on operating private high schools, providing inclusive and high-quality education through technology, with the Group acquiring income rights to a 29.99% equity interest valued at HKD 1.70486 billion, expecting medium-term returns - Honghu Education focuses on operating private high schools, providing inclusive and high-quality education through technology empowerment[111](index=111&type=chunk) - The Group acquired the income right to a **29.99% equity interest** in Honghu Education, with a carrying amount of **HKD 1.70486 billion**[84](index=84&type=chunk)[111](index=111&type=chunk) - Honghu Education adopts the 'RAIC (Ruike) model', combining AI systems to provide personalized education experiences[111](index=111&type=chunk) [Hong Kong Nanshan Development Ltd 7.5% 23-05-2024 (Nanshan Bond)](index=23&type=section&id=Hong%20Kong%20Nanshan%20Development%20Ltd%207.5%25%2023-05-2024%20(Nanshan%20Bond)) The Group subscribed to Nanshan Bond with a principal amount of HKD 975 million, a 7.5% coupon rate, maturing on May 24, 2024, guaranteed by Nanshan Group, providing stable returns in a volatile economic environment - The Group subscribed to Nanshan Bond with a principal amount of **HKD 975 million**, a coupon rate of **7.5%**, maturing on May 24, 2024[86](index=86&type=chunk)[143](index=143&type=chunk)[178](index=178&type=chunk) - Nanshan Group provides a guarantee, with its long-term corporate credit rating of 'AAA'[113](index=113&type=chunk)[144](index=144&type=chunk)[178](index=178&type=chunk) - The Group believes Nanshan Bond offers stable returns in a volatile economic environment, with an interest rate higher than fixed deposits[144](index=144&type=chunk) [Qingdao Wanfeng Shidai Linghang Equity Investment Center (Shidai Linghang Fund)](index=24&type=section&id=Qingdao%20Wanfeng%20Shidai%20Linghang%20Equity%20Investment%20Center%20(Shidai%20Linghang%20Fund)) The Group's holding in Shidai Linghang Fund is HKD 758.87 million, which primarily invests in unlisted equity of emerging technology industries like cybersecurity, internet, and AI, aiming for indirect participation and risk reduction in China's emerging tech sector - The Group's holding in Shidai Linghang Fund is **HKD 758.87 million**[87](index=87&type=chunk)[145](index=145&type=chunk) - Shidai Linghang Fund primarily invests in unlisted equity of emerging technology industries such as cybersecurity software, internet, and artificial intelligence[145](index=145&type=chunk) - The Group believes subscribing to this fund allows indirect participation in China's emerging technology industry, reducing direct investment risks through professional management, and is expected to bring medium-term returns[88](index=88&type=chunk) [Qingdao Taihe Specialized and New Equity Investment Center (Specialized and New Fund)](index=25&type=section&id=Qingdao%20Taihe%20Specialized%20and%20New%20Equity%20Investment%20Center%20(Specialized%20and%20New%20Fund)) The Group's holding in Specialized and New Fund is HKD 416.42 million, which primarily invests in innovative unlisted companies focusing on niche markets with specialized technologies, covering energy conservation, environmental protection, and fintech, aiming for diversified investment opportunities - The Group's holding in Specialized and New Fund is **HKD 416.42 million**[89](index=89&type=chunk)[116](index=116&type=chunk) - The Specialized and New Fund primarily invests in innovative unlisted companies focusing on niche markets with specialized technologies, covering energy conservation, environmental protection, and fintech industries[89](index=89&type=chunk) - The Group believes subscribing to this fund offers diversified investment opportunities and potential returns from various high-growth industries[117](index=117&type=chunk) [Qingdao Dongying Linghang Equity Investment Center (Dongying Linghang Fund)](index=26&type=section&id=Qingdao%20Dongying%20Linghang%20Equity%20Investment%20Center%20(Dongying%20Linghang%20Fund)) The Group invested RMB 450 million in Dongying Linghang Fund, which covers technological innovation and market expansion in China's advanced manufacturing sector, including new materials, high-end equipment, biotechnology, and next-generation information technology, expecting new growth momentum - The Group invested **RMB 450 million** in Dongying Linghang Fund[147](index=147&type=chunk) - Dongying Linghang Fund covers technological innovation and market expansion in China's advanced manufacturing sector, including new materials, high-end equipment manufacturing, biotechnology, and next-generation information technology[91](index=91&type=chunk) - The Group believes subscribing to this fund will provide opportunities to participate in future economic growth and benefit from the rapid development of China's advanced manufacturing sector[91](index=91&type=chunk) [Trading and Others](index=27&type=section&id=Trading%20and%20Others) As of September 30, 2023, the Group's trading and other holdings amounted to HKD 49.20 million, primarily in listed securities and other equity investments, with new and disposed investments made to enhance capital liquidity and generate returns - Trading and other holdings amounted to **HKD 49.20 million**, primarily listed securities (**HKD 48.75 million**) and other equity investments (**HKD 0.45 million**)[119](index=119&type=chunk) - New and disposed investments in certain listed securities were made during the period to enhance capital liquidity and generate returns[119](index=119&type=chunk) [Financial Review](index=27&type=section&id=Financial%20Review) This section reviews the Group's financial position and profit or loss performance, noting a decrease in debt-to-asset and debt ratios, improved liquidity, significant revenue growth, but a substantial decrease in profit due to investment losses [Financial Position](index=27&type=section&id=Financial%20Position) As of September 30, 2023, the Group's debt-to-asset ratio decreased to 0.13 from 0.14, with net assets at HKD 9.87014 billion and net asset value per share at HKD 0.94, while investments at fair value through profit or loss decreased and debt investments increased - The debt-to-equity ratio (total liabilities divided by total equity) was **0.13**, a decrease from **0.14** as of March 31, 2023[120](index=120&type=chunk) - Net asset value was **HKD 9.87014 billion**, with net asset value per share at **HKD 0.94**, a slight decrease from March 31, 2023[150](index=150&type=chunk) - Investments at fair value through profit or loss amounted to **HKD 6.37512 billion**, a **4.25% decrease**, mainly due to RMB depreciation[152](index=152&type=chunk) - Debt investments increased by **6.65%** to **HKD 3.59150 billion**, primarily due to new investments during the period[122](index=122&type=chunk) - Bank and cash balances amounted to **HKD 34.38 million**, a significant decrease from HKD 108.36 million as of March 31, 2023[153](index=153&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Review)](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income_Review) Total revenue increased by 71.62% to HKD 147.42 million, driven by debt investment interest income, but profit for the period significantly decreased to HKD 23.15 million, offset by unrealized and realized investment losses and reduced share of profits from associates and joint ventures - Total revenue increased by **71.62%** to **HKD 147.42 million**, primarily from debt investment interest income[123](index=123&type=chunk)[124](index=124&type=chunk) - Profit for the period was **HKD 23.15 million**, compared to HKD 213.21 million in the prior period, mainly offset by **HKD 112.15 million** in unrealized investment losses and **HKD 45.14 million** in realized losses from investments at fair value through profit or loss[123](index=123&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - Other income and gains, net, primarily refers to the **HKD 84.81 million** net gain on disposal of a subsidiary[155](index=155&type=chunk) - Share of profits of associates and joint ventures, net, was **HKD 20.19 million**, a significant decrease from HKD 104.26 million in the prior period, mainly due to the share of losses from Treasure Up[158](index=158&type=chunk) - Operating and administrative expenses decreased to **HKD 32.03 million**, primarily due to reduced depreciation of right-of-use assets from office relocation[128](index=128&type=chunk) - Net loss from other comprehensive expenses was **HKD 163.76 million**, mainly due to exchange differences from RMB depreciation[129](index=129&type=chunk) [Dividend Policy and Proposed Interim Dividend](index=30&type=section&id=Dividend%20Policy%20and%20Proposed%20Interim%20Dividend) The Board will consider the Group's financial position, cash flow, future investment plans, and macroeconomic conditions to determine dividend distribution, and resolved not to pay any interim dividend for the period - The Board will comprehensively consider the Group's financial position, cash flow, future investment plans, and macroeconomic conditions to determine dividend distribution[160](index=160&type=chunk) - The Board resolved not to pay any interim dividend for the period[160](index=160&type=chunk) - Current main income sources are investment dividend income and interest income from bank deposits and financial instruments[161](index=161&type=chunk) [Liquidity and Financial Resources](index=30&type=section&id=Liquidity%20and%20Financial%20Resources) As of September 30, 2023, the Group had bank and cash balances of HKD 34.38 million and total borrowings of HKD 1.17692 billion, with an equity-to-debt ratio of 11.92%, debt-to-asset ratio of 10.57%, and a current ratio of 4.35 times, indicating sufficient liquidity - Bank and cash balances amounted to **HKD 34.38 million**, a decrease from HKD 108.36 million as of March 31, 2023[131](index=131&type=chunk) - Total borrowings amounted to **HKD 1.17692 billion**, a decrease from HKD 1.28039 billion as of March 31, 2023[131](index=131&type=chunk) - The equity-to-debt ratio (interest-bearing external borrowings divided by shareholders' equity) was **11.92%**, and the debt-to-asset ratio (total borrowings divided by total assets) was **10.57%**[131](index=131&type=chunk) - The current ratio (current assets divided by current liabilities) was **4.35 times**, indicating sufficient liquidity[131](index=131&type=chunk) - The Board believes that operating and borrowing resources are sufficient to meet future continuous investment and working capital needs[162](index=162&type=chunk) [Capital Structure](index=30&type=section&id=Capital%20Structure) As of September 30, 2023, shareholders' equity was HKD 9.870137 billion, with the total number of issued shares at 10,520,324,505, consistent with March 31, 2023 - Shareholders' equity was **HKD 9.870137 billion**, with the total number of issued shares at 10,520,324,505, consistent with the end of the prior period[163](index=163&type=chunk) [Significant Acquisitions and Disposals of Investments](index=31&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Investments) During the period, the Group made new investments totaling HKD 3.49846 billion, primarily in portfolio management (debt instruments and income rights), and disposed of investments totaling HKD 3.29932 billion, mainly from portfolio management (listed securities and other investments) Significant Acquisitions and Disposals of Investments | Category | New/Additional Investments (HKD millions) | Disposals/Sales of Investments (HKD millions) | | :--- | :--- | :--- | | Private Equity | – | (156.79) | | Portfolio Management | 3,482.05 | (3,139.09) | | — Listed Securities | 0.01 | (425.15) | | — Debt Instruments | 1,288.18 | (1,039.07) | | — Income Rights | 1,704.86 | – | | — Others | 489.00 | (1,674.87) | | Trading and Others | 16.41 | (3.44) | | **Total** | **3,498.46** | **(3,299.32)** | - New investments in the portfolio management category totaled **HKD 3.48205 billion**, including **HKD 1.70486 billion** in income right investments and **HKD 1.28818 billion** in debt instrument investments[135](index=135&type=chunk) - Disposals in the portfolio management category totaled **HKD 3.13909 billion**, including **HKD 1.67487 billion** in other investments and **HKD 1.03907 billion** in debt instrument investments[135](index=135&type=chunk) [Advances to Entities](index=31&type=section&id=Advances%20to%20Entities) The Group, through its wholly-owned subsidiary, subscribed to Nanshan Bond with a principal amount of HKD 975 million, an annual interest rate of 7.5%, guaranteed by Nanshan Group, and maturing on May 24, 2024 - The Group subscribed to Nanshan Bond with a principal amount of **HKD 975 million**, an annual interest rate of **7.5%**, maturing on May 24, 2024[178](index=178&type=chunk) - Nanshan Group unconditionally and irrevocably guaranteed all payments for the Nanshan Bond[178](index=178&type=chunk) [Employees](index=32&type=section&id=Employees) As of September 30, 2023, the Group had 31 employees, with total staff costs of HKD 8.71 million, a slight increase from the prior period, and remuneration policy aligned with market practices based on individual performance and experience - As of September 30, 2023, the Group had **31 employees**, a slight decrease from 33 as of March 31, 2023[179](index=179&type=chunk) - Total staff costs for the period amounted to **HKD 8.71 million**, a slight increase from HKD 8.34 million in the prior period[179](index=179&type=chunk) - Remuneration policy is consistent with market practices, determined by individual employee performance and experience[179](index=179&type=chunk) [Share Option Scheme](index=32&type=section&id=Share%20Option%20Scheme) No share options were granted or exercised by the Board during the period, and as of September 30, 2023, zero share options remained outstanding under the scheme - No share options were granted or exercised by the Board during the period[138](index=138&type=chunk) - As of September 30, 2023, zero share options remained outstanding under the share option scheme[138](index=138&type=chunk) [Foreign Exchange Fluctuation Risk and Related Hedging](index=32&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk%20and%20Related%20Hedging) The Group is primarily exposed to foreign exchange risk from RMB-denominated financial instruments, with a maximum exposure of RMB 3.01906 billion (equivalent to HKD 3.24020 billion), while USD exchange risk is minimal due to the HKD peg - The Group is primarily exposed to foreign exchange risk from RMB-denominated financial instruments, with a maximum exposure of **RMB 3.01906 billion** (equivalent to **HKD 3.24020 billion**)[167](index=167&type=chunk) - USD exchange rate risk is minimal due to the HKD peg to the USD[139](index=139&type=chunk) [Pledge of Assets and Contingent Liabilities of the Group](index=32&type=section&id=Pledge%20of%20Assets%20and%20Contingent%20Liabilities%20of%20the%20Group) As of September 30, 2023, the Group had no pledge of assets, except for certain interests in associates and debt investments pledged for bank loans - As of September 30, 2023, the Group had no pledge of assets, except for certain interests in associates and debt investments pledged for bank loans[168](index=168&type=chunk) [Plans for Material Investments or Capital Assets and Expected Sources of Funding](index=33&type=section&id=Plans%20for%20Material%20Investments%20or%20Capital%20Assets%20and%20Expected%20Sources%20of%20Funding) As of September 30, 2023, there were no plans for material investments or capital assets, but the Group may negotiate potential investments at any time as part of its ordinary course of business - As of September 30, 2023, there were no plans for material investments or capital assets[169](index=169&type=chunk) - The company considers new investments as part of its ordinary course of business, and management may make announcements during the financial year[169](index=169&type=chunk) [Purchase, Sale or Redemption of Securities](index=33&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Securities) Neither the Group nor any of its subsidiaries purchased, sold, or redeemed any of the Group's securities during the period - Neither the Group nor any of its subsidiaries purchased, sold, or redeemed any of the Group's securities during the period[183](index=183&type=chunk) [Change of Company Name](index=33&type=section&id=Change%20of%20Company%20Name) The company's English name was changed to "Wealthink AI-Innovation Capital Limited" and its Chinese name to "華科智能投資有限公司" on August 28, 2023, reflecting its innovation-driven investment strategy focused on AI and high-tech industries - The company's English name was changed to **'Wealthink AI-Innovation Capital Limited'** and its Chinese name to **'華科智能投資有限公司'**, effective August 28, 2023[142](index=142&type=chunk)[183](index=183&type=chunk) - The name change aims to provide a new corporate image and reflect the company's innovation-driven investment strategy, focusing on quality investment opportunities in AI and high-tech industries[183](index=183&type=chunk) [Events After Reporting Period](index=33&type=section&id=Events%20After%20Reporting%20Period) The company's stock short name on the Stock Exchange was changed to "WEALTHINK AI" and "華科智能投資" effective October 9, 2023, with the stock code unchanged, and a new company logo adopted on October 3, 2023 - The company's stock short name on the Stock Exchange was changed to **'WEALTHINK AI'** and **'華科智能投資'**, effective October 9, 2023, with the stock code remaining unchanged[171](index=171&type=chunk) - A new company logo was adopted on October 3, 2023[171](index=171&type=chunk) [Corporate Governance](index=34&type=section&id=Corporate%20Governance) [Corporate Governance Code](index=34&type=section&id=Corporate%20Governance%20Code) The company has complied with the Corporate Governance Code in Appendix 14 of the Listing Rules, with management regularly reporting to the Board, which is deemed sufficient for performance assessment - The company has complied with the Corporate Governance Code in Appendix 14 of the Listing Rules[186](index=186&type=chunk) - Management regularly reports to the Board, which the directors deem sufficient for proper performance assessment[172](index=172&type=chunk) [Model Code for Securities Transactions by Directors of Listed Issuers](index=34&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The company adopted a policy supplementing the Model Code, and all directors confirmed full compliance with both the Model Code and internal policy during the period - The company has adopted a 'Policy on Securities Transactions by Directors and Employees' to supplement the Model Code set out in Appendix 10 of the Listing Rules[173](index=173&type=chunk) - All directors confirmed full compliance with the Model Code and the aforementioned internal policy during the period[173](index=173&type=chunk) [Directors' Rights to Acquire Shares and Debentures](index=34&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20and%20Debentures) During the period, neither the company nor its associated corporations entered into any arrangements enabling directors or chief executives to acquire any interests or short positions in shares, related shares, or debentures of the company or its associated corporations - During the period, neither the company nor its associated corporations entered into any arrangements enabling directors or chief executives to acquire any interests or short positions in shares, related shares, or debentures of the company or its associated corporations[174](index=174&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the Group's accounting principles and practices with management, discussing audit and financial reporting matters, including the condensed consolidated interim financial information for the period - The Audit Committee reviewed the accounting principles and practices adopted by the Group with management, and discussed audit and financial reporting matters, including the condensed consolidated interim financial information for the period[175](index=175&type=chunk) [Review of Interim Financial Information](index=35&type=section&id=Review%20of%20Interim%20Financial%20Information) [External Auditor Review](index=35&type=section&id=External%20Auditor%20Review) The external auditor reviewed the unaudited interim financial information for the period in accordance with Hong Kong Standard on Review Engagements 2410 - The external auditor reviewed the unaudited interim financial information for the period in accordance with **Hong Kong Standard on Review Engagements 2410**[190](index=190&type=chunk) [Forward-Looking Statements](index=35&type=section&id=Forward-Looking%20Statements) [Nature of Forward-Looking Statements](index=35&type=section&id=Nature%20of%20Forward-Looking%20Statements) This interim results announcement contains forward-looking statements based on the Board's beliefs, assumptions, and expectations, where actual results or performance may differ materially due to risks, uncertainties, and other factors beyond the company's control - This interim results announcement contains forward-looking statements based on the Board's beliefs, assumptions, and expectations[190](index=190&type=chunk) - Actual results or performance may differ materially due to risks, uncertainties, and other factors beyond the company's control[190](index=190&type=chunk) [Publication of Interim Results and Interim Results Announcement](index=35&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Results%20Announcement) [Publication Details](index=35&type=section&id=Publication%20Details) The interim results announcement has been published on the Stock Exchange and the company's website and will be dispatched to the company's shareholders at the appropriate time - The interim results announcement has been published on the Stock Exchange website and the company's website (www.1140.com.hk)[191](index=191&type=chunk) - The interim results announcement will be dispatched to the company's shareholders at the appropriate time[191](index=191&type=chunk)

Investment Performance - OPIM is expected to maintain steady growth in the number of funds and overall assets due to the increasing scale of China's private funds in the overseas market[1]. - Wealthking Investments' holdings in Other Private Equity amounted to HK$2,939.02 million as of 31 March 2023, with new investments of HK$679.51 million during the year[1]. - The Group's investment in Jiedaibao Limited has a carrying value of HK$970.52 million, representing 2.49% of the shares issued by Jiedaibao as of 31 March 2023[1]. - The Group's position in the Shidai Linghang Fund was HK$808.30 million as of 31 March 2023, with a total fund scale of RMB2 billion[14]. - The Group's investment in the Specialized and Innovative Fund amounted to HK$444.86 million as of 31 March 2023, with a total fund scale of RMB790 million[16]. - The Group recorded total revenue of HK$192.74 million during the year, representing an increase of 105.20% compared to HK$93.93 million in the same period last year[33]. - The Group achieved a profit for the year of HK$146.38 million, down from HK$221.27 million for the same period last year[33]. - Investments at fair value through profit and loss amounted to HK$6,658.22 million as at 31 March 2023, an increase of 27.60% from HK$5,217.87 million as at 31 March 2022[33]. - Debt investments reached HK$3,367.46 million as at 31 March 2023, a 5.47 times increase from HK$616.09 million as at 31 March 2022[33]. - The Group's position in Nanshan Bonds amounted to HK$975.72 million as at 31 March 2023, with the bonds fully redeemed thereafter[22]. - The Group's investment in associates and joint ventures was valued at HK$921.86 million as at 31 March 2023, an increase of 33.86% from HK$688.65 million as at 31 March 2022[33]. - The Group's net change in unrealised loss on investments at fair value through profit or loss was HK$78.61 million for the current year[33]. - Wealthking Investments' holdings in private equity amounted to HK$4,035.09 million as of March 31, 2023[124]. - The core holding companies of Wealthking Investments, including iCarbonX, CSOP, and OPIM, had a combined value of HK$1,096.07 million as of March 31, 2023[126]. - Wealthking Investments' investment portfolio is concentrated in four main sectors, accounting for 69.64% of total holdings[120]. Financial Metrics - The total interest income from debt instruments was HK$191.40 million, with interest rates ranging from 6% to 9%[8]. - The interest income from debt instruments was lower than the previous year, which was HK$91.11 million[8]. - The Group's bank and cash balances stood at HK$108.36 million as at 31 March 2023, up from HK$86.40 million as at 31 March 2022[33]. - Wealthking Investments' net asset value as of March 31, 2023, was HK$10,010.76 million, or HK$0.95 per share, compared to HK$5,528.24 million and HK$1.36 per share as of March 31, 2022[52]. - The gearing ratio for Wealthking Investments as of March 31, 2023, was 0.14, a decrease from 0.35 on March 31, 2022[52]. - The company made new investments totaling approximately HK$4.908 billion during the fiscal year, with debt investments accounting for about HK$2.858 billion[87]. - The divestment during the year amounted to approximately HK$412.87 million, primarily from listed securities, funds, and private equity investments[99]. Strategic Focus - The Group's investment strategy focuses on sectors such as technology, high-end manufacturing, and emerging industries, aligning with China's "14th Five-Year Plan"[15]. - The company aims to expand its operations in vector control and rural vitalization sectors, which are expected to contribute to medium-term returns[52]. - The company is focusing on investment strategies in technological innovation and expanding its technology-themed investment portfolio[81]. - The company is dedicated to following technological trends to ensure sustainable growth and investment opportunities[68]. - The investment strategy is focused on three pillars: core-holding-centered private equity, portfolio management, and trading, with returns generated from interests, dividends, and capital appreciation[85]. - The company has strengthened its risk management framework to effectively monitor and evaluate investment portfolio risks in a volatile market environment[90]. - The company is focusing on emerging technology fields while continuing to strengthen strategic execution in the technology sector[94]. Market Conditions - The global economic environment has been challenging, with inflation and geopolitical tensions impacting growth[78]. - The overall road machinery market experienced a downturn in 2022, impacting performance metrics[198]. Company Developments - Wealthking Investments made new investments in listed securities and equity investments to enhance capital liquidity during the year[52]. - The company successfully completed four strategic capital increases over the past year, further strengthening its capital base[82]. - As of the end of the fiscal year, the total number of shares issued reached approximately 10.5 billion, with net assets exceeding HKD 10 billion[82]. - The company is committed to fulfilling corporate social responsibilities and responding to national policies to create more value for society and investors[81]. - The company is actively investing in cutting-edge technologies, particularly in cloud computing and big data, to capitalize on AI innovations[68]. - The company recognizes the potential of AI technology to enhance production efficiency across various industries[68]. - The company plans to continue its focus on building AI infrastructure and industrial application portfolios[68]. Specific Investments - The initial investment in Ninth Eternity Asia Fund II LP was HK$803.08 million, with a carrying value of HK$808.30 million as at 31 March 2023[27]. - The cost of Wealthking Investments' initial investment in the Ninth Eternity Asia Fund LP was HK$700 million, with a carrying value of HK$779 million[50]. - Wealthking Investments acquired a 25% equity interest in Treasure Up Ventures Limited, with a carrying value of HK$436.84 million as of March 31, 2023, an increase of HK$42.49 million from HK$394.35 million in the previous year[162]. - Jiedaibao, an internet fintech company, aims to become the largest service platform for individual borrowings and corporate supply chain finance in China, leveraging AI technology and a comprehensive fintech ecosystem[151]. - Jiedaibao has gained significant market share in Mainland China, supported by licenses for online payment, commercial banking, and internet microloans, contributing to its expected medium-term returns[152]. - Dagang Holding is expected to benefit from its market leadership in high-end road equipment and the growth in urban road smart operation and maintenance sectors[52]. - The hazardous waste and solid waste recycling sector's growth momentum is anticipated to positively impact Dagang Holding's performance[52].

Financial Performance - For the fiscal year ending March 31, 2023, the group reported a total revenue of HKD 469,589,000, a significant increase from HKD 271,503,000 in the previous year, representing a growth of approximately 73%[1] - The group's operating income for the year was HKD 192,741,255, compared to HKD 93,929,130 in the prior year, indicating an increase of around 105%[1] - The group recorded total income of HKD 192.74 million for the year, an increase of 105.20% from HKD 93.93 million in the previous year[103] - The company reported a net loss of HKD 220,907,000 for the year, compared to a loss of HKD 135,915,000 in the previous year[185] - The pre-tax profit for the year 2023 was HKD 149,523,000, a decrease from HKD 217,160,000 in 2022, representing a decline of approximately 31.1%[196] - The income tax expense for 2023 was HKD 29,307,000, compared to a tax benefit of HKD (68,199,000) in 2022, indicating a significant shift in tax position[196] Investment Activities - The group’s investment strategy consists of three components: core holdings in private equity, portfolio management, and trading[23] - The group made a new investment of HKD 679.51 million during the year, bringing the total holdings in private equity to HKD 2.93902 billion as of March 31, 2023[29] - The group’s investment in a healthcare sector company has a cost of HKD 1,098,790,000 and a book value of HKD 945,850,000[26] - The company has invested HKD 895.87 million in the Jiujiao Asia Fund II, which focuses on high-growth sectors such as consumption, internet, and pharmaceuticals, with a total fund size of HKD 3 billion[85] - The company has identified several potential investment opportunities in sectors such as AI, high-end product design, and green technology since the second half of 2021[127] Financial Position - The net asset value of the group as of March 31, 2023, was HKD 10.01076 billion, or HKD 0.95 per share, compared to HKD 5.52824 billion and HKD 1.36 per share on March 31, 2022[101] - The company's total assets increased to HKD 11,366,205,000 in 2023 from HKD 7,441,213,000 in 2022, indicating a growth of 53%[188] - The company’s total equity rose to HKD 10,010,755,000 in 2023, compared to HKD 5,528,244,000 in 2022, an increase of 81%[188] - The company’s financial liabilities decreased from HKD 1,912,969,000 in 2022 to HKD 1,355,450,000 in 2023, a reduction of 29%[189] - The group’s total borrowings amounted to HKD 12.8039 billion, down from HKD 18.4497 billion the previous year, with a debt-to-equity ratio of 12.09%[134] Dividends and Shareholder Returns - The group did not declare or recommend any dividends for the fiscal year ending March 31, 2023, consistent with the previous year[12] - The board has decided not to declare any interim dividends for the current period, similar to the previous fiscal year[110] Credit and Risk Management - The group has recognized a tax provision of 25% on taxable profits for the fiscal year ending March 31, 2023, while there was no tax provision in the previous year due to no taxable profits generated in China[11] - The expected credit loss provision for the year was RMB 6.073 million (equivalent to HKD 6.909 million), compared to RMB 7.438 million (equivalent to HKD 9.155 million) in the previous year[45] - The company maintains regular communication with bond issuers and borrowers to assess expected credit loss provisions based on repayment capabilities[67] Operational Insights - The company believes its operational and borrowing resources are sufficient to meet its ongoing investment and operational funding needs in the foreseeable future[112] - The company is optimistic about the recovery of its business and financial activities in China, anticipating economic growth to rebound[152] - The company has committed to actively seizing quality investment opportunities arising from the Chinese government's economic reopening policies[156] Future Outlook - The company plans to expand its market presence and invest in new technologies to drive future growth[190] - The company aims to enhance its capital and shareholder base for long-term development through the July 2022 and September 2022 fundraising efforts[169] - The overall performance for the fiscal year ending March 31, 2023, will be elaborated in future disclosures, highlighting key metrics and strategic directions[198]

Investment Strategy - Wealthking Investments focuses on cross-border investments in China's fast-growing industries, emphasizing long-term value creation[12]. - The investment strategy consists of three pillars: core-holding-centered private equity, portfolio management, and trading, generating returns from interests, dividends, and capital appreciation[13]. - The company aims to leverage its capital to empower high-growth potential companies through its private equity strategy[20]. - The investment strategy is structured around three pillars: core-holding-centered private equity, portfolio management, and trading, aimed at balancing liquidity and return[20]. - Wealthking Investments continues to adapt its investment vision amidst a complex and volatile market environment[14]. - The Group's investment strategy includes focusing on emerging industries guided by the Chinese government's supply-side structural reform[92]. Financial Performance - During the six months ended September 30, 2022, global economic growth momentum declined due to factors like COVID-19 variants and high inflation, impacting the international financial market[14]. - The Group recorded total revenue of HK$85.90 million for the period, representing a 75.49% increase compared to HK$48.95 million in the same period last year[169]. - Profit for the period was HK$213.21 million, up from HK$196.79 million in the previous year, primarily due to HK$104.26 million from associates and joint ventures[169]. - As of September 30, 2022, the net asset value of Wealthking Investments was HK$9,661.97 million, or HK$1.00 per share, compared to HK$5,528.24 million and HK$1.36 per share as of March 31, 2022[164]. - The gearing ratio decreased to 0.15 as of September 30, 2022, from 0.35 as of March 31, 2022[164]. - Investments at fair value through profit and loss rose by 30.37% to HK$6,802.61 million as of September 30, 2022, compared to HK$5,217.87 million as of March 31, 2022[167]. - The Group's total borrowings amounted to HK$1,428.23 million, a decrease from HK$1,844.97 million as of March 31, 2022, resulting in a debt-to-equity ratio of 14.08% compared to 32.01% previously[4]. Portfolio Composition - As of 30 September 2022, the four main sectors of the company's existing portfolio represented 68.58% of total investment holdings, including Debt and Other Instruments, Technology, Media and Telecom (TMT), Medical and Health, and Financial Services[25]. - The company's holdings in private equity amounted to HK$4,173.08 million as of 30 September 2022, with a focus on long-term core holding and other private equity investments[32]. - Wealthking Investments' holdings in other private equity amounted to HK$2,985.05 million as of September 30, 2022, with new investments of HK$677.55 million added during the period[70]. - As of September 30, 2022, the Group's position in BITIC stood at HK$488.58 million, reflecting continuous business growth during the period[79]. - The Group's investment in Wall King Industry Investment Limited decreased by 10.3% to HK$329.34 million as of September 30, 2022, due to valuation fall from RMB depreciation[86]. Key Investments - The major investment in the TMT sector includes Jiedaibao Limited, while the leading position in the Medical and Health sector is held by iCarbonX Group Limited[25]. - iCarbonX, a core holding, focuses on digital health management, with the company owning 7.73% equity interest valued at HK$1,028.39 million as of 30 September 2022[36]. - Wealthking Investments holds a 22.5% equity ownership in CSOP, with a carrying value of HK$120.44 million, reflecting a 16.10% increase from HK$103.74 million as of March 31, 2022[52]. - The investment in Nanshan Capital Holdings Ltd 7% bonds is noted as the largest investment in the Debt and Other Instruments sector[25]. - Jiedaibao, an internet fintech company, has a carrying value of HK$954.58 million, representing a 2.49% equity ownership, as of September 30, 2022[70]. Market Trends and Future Outlook - The integration of industry, technology, and financial capital is seen as a key trend propelling new industrial revolutions[12]. - The focus on emerging technology sectors is intended to drive business expansion through technological layout[14]. - Wealthking Investments anticipates that Jiedaibao's continuously growing business will generate considerable medium-term returns for the Group[75]. - The Group anticipates medium-term returns from investments in high-growth industries, supported by the management expertise of its fund partners[136]. - The Group's investment strategy aligns with China's "14th Five-Year Plan," emphasizing technology and high-end manufacturing[130]. Operational Highlights - The company increased investments in the portfolio management category to capture market opportunities while balancing liquidity and return rates[14]. - The Group made new investments totaling HK$4,356.15 million during the period, with HK$2,301.70 million allocated to debt instruments[6]. - The Group divested investments totaling HK$125.08 million, including HK$56.68 million from four listed securities[6]. - Operating and administrative expenses totaled HK$41.30 million, an increase from HK$35.92 million in the previous year, driven by brokerage commissions and trading expenses[187]. - The Board has resolved not to pay any interim dividend for the period, consistent with the previous year[187].