[Supplemental Announcement Regarding the Company's 2024 Annual Report](index=1&type=section&id=Supplemental%20Announcement%20Regarding%20the%20Company%27s%202024%20Annual%20Report) [Overview and Supplemental Information on Share Option Scheme](index=1&type=section&id=Overview%20and%20Supplemental%20Information%20on%20Share%20Option%20Scheme) This announcement supplements information on the company's share option scheme in the 2024 annual report, clarifying vesting terms and specifying that 'other' grantees in financial statement notes refer to 'other eligible participants' - For the year ended December 31, 2024, no share options were cancelled or clawed back, and all options granted under the scheme, except those to Ms. Qin Han, vested immediately[2](index=2&type=chunk) - The announcement clarifies that in Note 25 of the annual report's financial statements, 'other' grantees refer to 'other eligible participants'[2](index=2&type=chunk) [Changes in Share Options](index=2&type=section&id=Changes%20in%20Share%20Options) The announcement details share option movements for the year ended December 31, 2024, showing approximately **439 million** options granted to former directors and consultants in 2014 expired during the year, with no options exercised in 2023 or 2024 - According to revised annual report information, for the year ended December 31, 2024, **60,394,737** share options held by one director and **378,473,685** options held by other eligible participants expired[5](index=5&type=chunk) 2024 Share Option Movement Details (Portion Granted in 2014) | Grantee | Unexercised at Start of 2024 | Expired During Year | Unexercised at End of 2024 | | :--- | :--- | :--- | :--- | | Former Directors and Consultants | 378,473,685 | (378,473,685) | 0 | - No share options were exercised during the two years ended December 31, 2024, and 2023[6](index=6&type=chunk) [Share Option Scheme Status Update](index=3&type=section&id=Share%20Option%20Scheme%20Status%20Update) The announcement confirms the company's share option scheme expired on June 3, 2024, resulting in zero available options for grant under the scheme by the end of 2024 - The company's share option scheme expired on June 3, 2024[6](index=6&type=chunk) Changes in Number of Share Options Available for Grant Under the Scheme | Date | Number of Options Available for Grant | | :--- | :--- | | 2024年1月1日 | 169,070,153 | | 2024年12月31日 | 0 |

Group 1 - The Hang Seng Index rose by 0.46% to close at 24,139.57 points on July 11 [1] - China Innovation Investment (01217.HK) closed at HKD 0.011 per share, up 10.0%, with a trading volume of 46.504 million shares and a turnover of HKD 479,600, showing a volatility of 10.0% [1] - Over the past month, China Innovation Investment has seen a cumulative decline of 9.09%, with no change in its year-to-date performance, underperforming the Hang Seng Index by 19.78% [1] Group 2 - As of December 31, 2024, China Innovation Investment reported total operating revenue of HKD 18.7597 million, a year-on-year increase of 112.55%, and a net profit attributable to shareholders of HKD 4.6348 million, up 128.23%, with a debt-to-asset ratio of 1.07% [1] - Currently, there are no institutional investment ratings for China Innovation Investment [2] - The average price-to-earnings (P/E) ratio for the other financial industry is 6.23 times, while China Innovation Investment has a P/E ratio of 25.58 times, ranking 55th in the industry [2] - Other companies in the sector have significantly lower P/E ratios, such as China Merchants China Fund (2.54 times), Weixin Financial Technology (3.54 times), Hong Kong Credit (3.69 times), Guoyin Financial Leasing (4.52 times), and Zhongguancun Technology Leasing (4.69 times) [2] Group 3 - China Innovation Investment Limited was registered in the Cayman Islands on February 7, 2002, and was listed on the main board of the Hong Kong Stock Exchange on August 28, 2002, focusing on investment in both listed and unlisted enterprises [2]

Investment Activities - The company completed the subscription of 226,000,000 new shares of Easy Life Holdings Limited for a cash consideration of HKD 27,798,000, representing approximately 16.66% of the issued share capital post-completion [11]. - The company entered into a shareholder agreement with Oasis Avenue Limited for a cash consideration of HKD 12,600,000, representing 29.27% of the voting shares post-completion [12]. - The company holds investments in six unlisted companies with book values of approximately HKD 35,142,000, HKD 48,273,000, HKD 39,319,000, HKD 33,791,000, HKD 43,734,000, and HKD 11,887,000 respectively [14]. - The company has made significant investments in sectors such as renewable energy, new materials, and health communication products [9][10][11]. - The company's primary investment strategy focuses on achieving medium to long-term capital appreciation through investments in quality listed and unlisted companies primarily located in Hong Kong and China, with at least 70% of investments in these regions [53]. - The company aims to balance risks by investing in equity-related securities and debt instruments across various industries, including information technology, telecommunications, manufacturing, services, real estate, infrastructure, life sciences, and environment [53]. - The company emphasizes investing in companies with strong fundamentals and long-term growth potential, particularly those with profit growth potential and strong R&D capabilities [53]. - The company may consider divesting investments when it believes that monetizing such investments aligns with its best interests, especially under favorable terms [53]. Financial Performance - The company's revenue for the year ended December 31, 2024, was approximately HKD 687,883,000, compared to HKD 387,620,000 for the year ended December 31, 2023, representing an increase of about 77.5% [26]. - The net realized gains from investments and other investment products for the year ended December 31, 2024, amounted to approximately HKD 12,505,000, compared to a net loss of HKD 3,149,000 for the same period in 2023 [26]. - The net profit attributable to shareholders for the year ended December 31, 2024, was approximately HKD 5,005,000, up from HKD 2,193,000 in the previous year, primarily driven by realized gains from investments [26]. - As of December 31, 2024, the company's net asset value was approximately HKD 542,711,000, down from HKD 547,668,000 in 2023, with a net asset value per share of HKD 0.042 [26]. - The company held listed equity securities valued at approximately HKD 86,251,000 as of December 31, 2024, including 689,000 shares of Alibaba Group valued at approximately HKD 56,774,000, representing about 10.3% of the company's total assets [27]. - The company had cash and bank balances of approximately HKD 213,589,000 as of December 31, 2024, with a zero debt-to-equity ratio, indicating a net cash position [36]. - The company did not incur any bank financing during the review period and expects to have sufficient financial resources to meet its operational and development needs [36]. - The company reported a net unrealized holding gain of approximately HKD 127,000 from investments as of December 31, 2024 [33]. Market Outlook - The company remains optimistic about long-term development prospects despite challenges in the economic environment and the real estate market [21]. - The company anticipates that market conditions will continue to be challenging but believes these challenges are temporary [21]. - The company anticipates continued challenges in the market due to weak consumer and business confidence, a sluggish real estate market, and tightening financial conditions [49]. - The company remains confident in its long-term development prospects and aims to transform traditional models into innovative ones to foster new productivity and growth [50][51][52]. Corporate Governance - The board of directors consists of two executive directors and three independent non-executive directors as of December 31, 2024 [70]. - All independent non-executive directors have confirmed their independence according to the factors listed in Listing Rule 3.13 [72]. - The company has established a board diversity policy to ensure a balanced mix of skills, experience, and diversity among board members [73]. - The remuneration committee, composed entirely of independent non-executive directors, determines the remuneration policies for executive directors and senior management [78]. - The executive committee, formed by all executive directors, is authorized to handle all matters related to the company's daily operations [75]. - The company has not discussed specific matters during the executive committee meetings in the past year [77]. - The chairman and CEO roles are held by the same individual, which deviates from the guideline that these roles should be separated [67]. - The audit committee confirmed the independence of the external auditor, suggesting the reappointment of the auditing firm for the upcoming annual general meeting [85]. - The internal control system was deemed robust and effective, ensuring the protection of shareholder and employee interests [82]. - The board is responsible for overseeing the company's risk management and internal control systems [92]. Employee and Social Responsibility - The company has 16 employees as of December 31, 2024, down from 18 in 2023, with total compensation amounting to approximately HKD 2,883,000, an increase from HKD 2,205,000 in the previous year [41]. - The company encourages employees to obtain professional qualifications and provides necessary subsidies to enhance personal development [161]. - The company has established a recruitment standard and position manual, ensuring equal opportunities regardless of gender, age, or religion [155]. - The company has a diverse workforce, with 38% of employees aged between 40 to 60 years [155]. - The company provided over 50 hours of internal training in 2024, with nearly all employees participating in weekly training sessions [165]. - The company has implemented a fair and transparent reward system, reviewing compensation structures annually and performance monthly to ensure competitive salaries [161]. - In 2024, the company did not experience any work-related fatalities or injuries leading to employee absenteeism, emphasizing its commitment to health and safety [162]. - The company actively encourages employees to adopt sustainable practices, including energy-saving training programs and incentives for purchasing eco-friendly products [144]. - The company encourages employees to participate in charitable activities and has established over 170 recycling stations across Hong Kong [184]. Environmental Sustainability - The company has committed to environmental sustainability and compliance with relevant laws and regulations [100]. - The company achieved 100% paper procurement from suppliers adhering to a "zero deforestation commitment" in 2024, maintaining its commitment from the previous year [148]. - The company implemented measures to reduce energy waste, including mandatory shutdown of lights and equipment after 10 minutes of inactivity, contributing to resource conservation and environmental protection [146]. - The company promotes a paperless office by reducing printer usage and minimizing paper consumption, which helps lower greenhouse gas emissions [143]. - The company recognizes the importance of responsible IT equipment usage and disposal as a core aspect of its sustainability plan, focusing on extending the lifecycle of IT assets [149]. - The company emphasizes the integration of air purification measures in the workplace, reflecting its commitment to employee well-being and corporate culture [153]. - The company's electricity consumption in the Hong Kong office for 2024 was 6,080 kWh, resulting in greenhouse gas emissions of 4,013 kg CO2-e, compared to 5,696 kWh and 3,873 kg CO2-e in 2023, indicating a 6.7% increase in electricity consumption and a 3.6% increase in emissions [151]. Risk Management - The company is exposed to economic risks, particularly due to the macroeconomic conditions in China, which can significantly impact the business and financial performance of its investments [57]. - The company cannot acquire more than 30% voting rights in any invested company, limiting its control and involvement in management decisions [60]. - The company is subject to market risks, as stock prices can fluctuate due to political, economic, and social factors, affecting the value of its listed equity holdings [61]. - The company operates under the regulatory framework of China, which presents legal risks due to the evolving nature of its commercial laws and regulations [62]. - The company perceives foreign exchange risk as low, given that financial assets and liabilities denominated in foreign currencies are not significant [64]. - The company does not hedge its foreign exchange risk against the US dollar due to the controlled and narrow fluctuation of the Hong Kong dollar against the US dollar [65]. - The company regularly monitors industry developments and assesses various types of risks to formulate appropriate strategies to minimize adverse impacts [66]. Compliance and Ethics - The company has implemented an internal monitoring policy to prevent corruption and fraud, overseen by the Human Resources Department [175]. - The company emphasizes the importance of corporate governance and ethical standards to meet the expectations of shareholders and regulators [177]. - The company has a clear stance against corruption and fraud, incorporating appropriate clauses in contracts with suppliers and business partners [176]. - The company conducts regular anti-corruption training sessions and has established a mechanism for employees to report suspicious activities anonymously [179]. - The company has not encountered any significant compliance issues related to employment standards in 2024 [152]. - The company has not reported any significant compliance issues in 2024, adhering strictly to applicable laws and regulations [164].

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately HKD 687,883,000, a significant increase of 77.5% compared to HKD 387,620,000 for the fiscal year ending December 31, 2023[3] - The net realized gains from investments and other investment products for the fiscal year ending December 31, 2024, amounted to approximately HKD 12,505,000, compared to a net loss of HKD 3,149,000 in the same period of 2023[3] - The net profit attributable to shareholders for the fiscal year ending December 31, 2024, was approximately HKD 5,005,000, up from HKD 2,193,000 in the previous year, primarily driven by realized gains from investments[3] - The company's basic earnings per share for the fiscal year ending December 31, 2024, was HKD 0.039, compared to HKD 0.017 in 2023, reflecting improved profitability[5] - The company's pre-tax profit for 2024 was HKD 5,005,000, compared to HKD 2,193,000 in 2023, representing an increase of 128.4%[21] - The basic earnings per share for 2024 was approximately HKD 0.00039, up from HKD 0.00017 in 2023, indicating an increase of 129.4%[24] Assets and Liabilities - As of December 31, 2024, the company's net asset value was approximately HKD 542,711,000, a slight decrease from HKD 547,668,000 in 2023, mainly due to unfavorable global economic conditions[4] - Total assets less current liabilities as of December 31, 2024, were approximately HKD 543,185,000, compared to HKD 549,049,000 in 2023[6] - The company reported a decrease in cash and bank balances to HKD 213,589,000 as of December 31, 2024, from HKD 40,578,000 in the previous year, indicating improved liquidity management[6] - The company's unutilized tax losses at the end of 2024 were approximately HKD 68,947,000, slightly down from HKD 71,726,000 in 2023[21] - The company has no pledged assets or significant contingent liabilities as of December 31, 2024[65] Investments - The company continues to focus on investments primarily in listed and unlisted companies in Hong Kong and China for medium to long-term capital appreciation[7] - The company's non-listed equity investments amounted to HKD 200,259,000 as of December 31, 2024, compared to HKD 210,221,000 in 2023, reflecting a decrease of approximately 4.6%[34] - The fair value of investments in listed equity securities in Hong Kong was HKD 86,251,000 for 2024, down from HKD 137,382,000 in 2023, indicating a decline of about 37.2%[41] - The company holds a 42.00% equity interest in Oasis Avenue Limited, which operates in the hotel services sector[27] - The company has invested approximately HK$12,600,000 for a 29.27% stake in Oasis Avenue Limited, which is involved in hotel services[54] - The company has a strategic focus on energy-saving and environmentally friendly products across six industry sectors, including new energy and new materials[51] - The company emphasizes investment in innovative business models, such as photovoltaic construction and debt securities linked to index growth[59] Operational Costs - The company’s administrative and other operating expenses increased to HKD 14,434,000 in 2024 from HKD 7,261,000 in 2023, reflecting higher operational costs[5] - Total employee compensation for the year was approximately HKD 2,883,000, an increase from HKD 2,205,000 in the previous year[75] Market Conditions and Strategy - The company anticipates ongoing challenges in the market due to weak consumer and business confidence, particularly in the real estate sector[66] - The company believes that the current challenges are temporary and will lead to a transformation towards innovative models for long-term growth[66] - The company plans to focus on innovative business models to uncover investment opportunities in response to the challenging global environment[66] Corporate Governance - The company has not adopted any new accounting standards that are expected to have a significant impact on its financial statements in the foreseeable future[11] - The board of directors includes Mr. Xiangxin as the chairman and CEO, and Mr. Chen Changyi as an executive director[79] - The annual report will be published on the stock exchange and the company's website at an appropriate time[77] Dividends and Shareholder Returns - The company did not recommend any dividends for the years ended 2024 and 2023[25] - The company aims to optimize its capital structure to maximize returns for shareholders while managing risks effectively[47] - The company has maintained at least 25% of shares in public circulation as required by the stock exchange regulations[47] - The company's net asset value per share as of December 31, 2024, is HK$0.042, compared to HK$0.043 in 2023[49]

Company Information [Company Overview and Key Partners](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This chapter outlines China Innovation Investment Limited's basic information, including board members, committees, key locations, and primary banking partners - Key management and committee structure: **Executive Directors**: Mr. Xiang Xin (Chairman and Chief Executive Officer), Mr. Chen Changyi; **Independent Non-executive Directors**: Ms. An Jing, Ms. Zhou Zan, Ms. Qin Han; **Executive Committee**: Composed of all executive directors, with Mr. Xiang Xin as Chairman; **Audit and Remuneration Committee Chairman**: Ms. An Jing; **Nomination Committee Chairman**: Mr. Xiang Xin[4](index=4&type=chunk) - The company's key external partners include: **Investment Manager**: Everbright Securities (Hong Kong) Limited; **Primary Banks**: Bank of China (Hong Kong) Limited, UBS; **Custodian**: China Everbright Securities (Hong Kong) Limited, UBS[5](index=5&type=chunk) Financial Highlights [Half-Year Performance Overview](index=5&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) For the six months ended June 30, 2024, the company achieved significant growth in both turnover and profit, with turnover increasing by 250% and profit by approximately 13.6% year-on-year, while the board decided against an interim dividend to retain capital for future operations and investments Half-Year Performance Summary as of June 30, 2024 | Indicator | Six Months Ended June 30, 2024 (HK$ Thousand) | Six Months Ended June 30, 2023 (HK$ Thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Turnover** | 269,660 | 77,028 | +250.1% | | **Revenue** | 11,843 | 10,254 | +15.5% | | **Profit for the Period** | 8,109 | 7,136 | +13.6% | | **Basic Earnings Per Share** | 0.063 HK Cents | 0.056 HK Cents | +12.5% | - The Board of Directors does not recommend an interim dividend for the six months ended June 30, 2024, aiming to retain capital to support operational needs and seize potential investment opportunities[7](index=7&type=chunk) Management Discussion and Analysis [Financial Review](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, the company's turnover significantly increased to approximately HK$270 million, with net profit growth primarily driven by increased realized gains from fair value investments, partially offset by unrealized holding losses Revenue Composition for H1 2024 | Item | Amount (HK$ Thousand) | | :--- | :--- | | Dividend income from Hong Kong listed securities | 3,411 | | Net realized gains on disposal of investments | 24,522 | | Net unrealized holding losses on investments | (17,771) | | **Total Revenue** | **11,843** | - Net profit for the six months ended June 30, 2024, was approximately **HK$8,109,000**, an increase from **HK$7,136,000** in the prior period, primarily due to higher realized gains from investment disposals[8](index=8&type=chunk) [Business Review](index=6&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) As an investment company listed under Chapter 21 of the Stock Exchange Listing Rules, the company primarily focuses on equity investments in both unlisted and listed entities, maintaining stable book values for five unlisted investments and actively engaging in short-term Hong Kong listed company transactions during the period - The company is an investment company listed on the Main Board of the Stock Exchange, adhering to the provisions of Chapter 21 of the Listing Rules[9](index=9&type=chunk) Unlisted Investment Portfolio (as of June 30, 2024) | Unlisted Company | Book Value (HK$ Thousand) | | :--- | :--- | | Sun Creation Limited | 36,149 | | Weimei Vision Limited | 53,933 | | Link Crown Future Limited | 40,955 | | Fengtian Huifu Limited | 34,935 | | Guangyuan Starry Sky Limited | 44,249 | - For short-term investments in Hong Kong listed companies, total proceeds from sales for the half-year ended June 30, 2024, amounted to **HK$269,660,000**, significantly higher than **HK$77,028,000** in the prior period[12](index=12&type=chunk) [Outlook](index=7&type=section&id=%E5%89%8D%E6%99%AF) The company's core strategy is to achieve medium to long-term capital appreciation by investing in quality listed and unlisted companies, having recently established substantial project layouts in five emerging industries—new energy, new light sources, new materials, new health, and new capital—to identify innovative business models focused on energy conservation and emission reduction - The company has established investment layouts in five emerging industrial sectors: **New Energy**: Investment in Sun Creation Limited, focusing on solar cell technology and application products; **New Light Source**: Investment in Weimei Vision Limited, focusing on energy-saving and environmentally friendly LED lighting products; **New Materials**: Investment in Link Crown Future Limited, focusing on green and environmentally friendly home decoration materials; **New Health**: Investment in Fengtian Huifu Limited, engaged in the development and sales of health communication products; **New Capital**: Investment in Guangyuan Starry Sky Limited, engaged in asset management and holding office properties in Shanghai[13](index=13&type=chunk)[14](index=14&type=chunk) - Looking ahead, the company will continue to explore investment opportunities with innovative business models and fulfill its social responsibilities, leveraging the power of investment for good[14](index=14&type=chunk) [Investment Portfolio Details](index=8&type=section&id=%E6%8A%95%E8%B3%87%E7%B5%84%E5%90%88) This section details the company's listed and unlisted investment portfolios as of June 30, 2024, showing a decrease in the market value of Hong Kong equity securities from the beginning of the year, with major holdings including Alibaba, Dayu Financial Holdings, and China Merchants Commercial REIT, while the unlisted portfolio comprises five core companies aligned with the company's emerging industry strategy Changes in Market Value of Hong Kong Listed Equity Securities | Item | June 30, 2024 (HK$ Thousand) | December 31, 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong listed equity securities | 53,159 | 137,382 | Major Hong Kong Listed Equity Securities Holdings (as of June 30, 2024) | Listed Equity Securities | Number of Shares Held | Cost (HK$ Thousand) | Market Value (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Alibaba Group Holding Limited (09988.hk) | 689,000 | 79,166 | 48,575 | | Dayu Financial Holdings Limited (01073.hk) | 8,355,000 | 3,760 | 802 | | China Merchants Commercial REIT (01503.hk) | 3,470,000 | 11,555 | 3,782 | - The company's five unlisted investments are all investment holding companies, corresponding to the five strategic areas of "New Energy," "New Light Source," "New Materials," "New Health," and "New Capital," in which the company holds a significant proportion of non-voting shares[17](index=17&type=chunk)[18](index=18&type=chunk) [Liquidity and Financial Position](index=10&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) The company maintains a robust financial position with ample cash and cash equivalents and no bank financing, ending the reporting period in a net cash position with a zero debt-to-equity ratio, indicating sufficient financial resources for ongoing operations and development - As of June 30, 2024, the company's cash and cash equivalents amounted to approximately **HK$195,499,000**, primarily denominated in Hong Kong Dollars[19](index=19&type=chunk) - The company funds its operations with its own capital, has not raised any bank financing, and maintains a zero debt-to-equity ratio (net debt to equity)[19](index=19&type=chunk) [Human Resources](index=11&type=section&id=%E5%83%B1%E5%93%A1%E8%B3%87%E6%96%99) As of June 30, 2024, the company had 19 employees with total remuneration of approximately HK$1.325 million, an increase from the prior period, and regularly reviews its compensation policy to ensure market competitiveness Employee and Remuneration Information | Item | June 30, 2024 | Prior Period (2023) | | :--- | :--- | :--- | | Number of Employees | 19 | 21 | | Total Remuneration (including directors' emoluments) | Approximately HK$1,325,000 | Approximately HK$952,000 | Disclosure of Interests [Directors' and Chief Executive's Interests](index=12&type=section&id=%E8%91%A3%E4%BA%8B%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) This section discloses the stock options held by the company's directors as of June 30, 2024, noting that several directors hold options granted under the share option scheme, with some held by Chairman Mr. Xiang Xin having expired post-reporting period Share Options Held by Directors (as of June 30, 2024) | Director Name | Number of Shares Involved | Exercise Price Per Share (HK$) | Exercise Period | | :--- | :--- | :--- | :--- | | Xiang Xin | 60,394,737 | 0.0497 | Until July 5, 2024 | | An Jing | 30,000,000 | 0.0497 | Until April 13, 2030 | | Zhou Zan | 30,000,000 | 0.0497 | Until April 3, 2028 | | Qin Han | 30,000,000 | 0.0497 | Until September 28, 2033 | - Note: **60,394,737** share options held by Director Mr. Xiang Xin automatically expired on July 5, 2024[28](index=28&type=chunk) [Major Shareholders' Interests](index=13&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%B3%B1%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) As of June 30, 2024, Harvest Rise Investments Limited was the company's major shareholder, holding approximately **29.82%** of shares, wholly owned by China Trends Holdings Limited, with China Science and Technology Education Foundation being China Trends' largest shareholder Major Shareholder Holdings (as of June 30, 2024) | Shareholder Name | Capacity | Number of Shares Held | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Harvest Rise Investments Limited | Beneficial | 3,817,807,905 | 29.82% | | China Trends Holdings Limited | Controlled Corporation Interest | 3,817,807,905 | 29.82% | | China Science and Technology Education Foundation | Controlled Corporation Interest | 3,817,807,905 | 29.82% | Corporate Governance and Other Information [Corporate Governance Practices](index=14&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The company is committed to high corporate governance standards, largely complying with the Corporate Governance Code during the reporting period, with the sole deviation being the combined roles of Chairman and Chief Executive Officer held by Mr. Xiang Xin, an arrangement the board deems currently in the company's best interest, supported by four committees assisting the board in its duties - The company has one deviation from the Corporate Governance Code: the roles of Chairman and Chief Executive Officer are not separated, both held by Mr. Xiang Xin, which the Board believes helps maintain policy continuity and operational stability[34](index=34&type=chunk) - The company has established an Executive Committee, Remuneration Committee, Nomination Committee, and Audit Committee, each composed of directors with relevant professional expertise to ensure effective corporate governance[35](index=35&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - For the six months ended June 30, 2024, the company did not purchase, sell, or redeem any of its listed securities and consistently maintained sufficient public float[40](index=40&type=chunk)[42](index=42&type=chunk) Condensed Financial Statements [Condensed Statement of Profit or Loss and Other Comprehensive Income](index=17&type=section&id=%E7%B0%A1%E6%98%8E%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the company's income, expenses, and profitability for the reporting period, showing a turnover of HK$270 million, a profit before tax of HK$8.109 million, and total comprehensive income attributable to owners of HK$8.109 million Profit or Loss Statement Summary for the Six Months Ended June 30, 2024 | Item | Amount (HK$ Thousand) | | :--- | :--- | | Turnover | 269,660 | | Revenue | 11,843 | | Administrative and other operating expenses | (3,741) | | Profit before tax | 8,109 | | **Profit for the period and attributable to owners of the Company** | **8,109** | | Basic earnings per share | 0.063 HK Cents | [Condensed Statement of Financial Position](index=18&type=section&id=%E7%B0%A1%E6%98%8E%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement presents the company's assets, liabilities, and equity as of the reporting period end, with total assets of approximately HK$557 million and total equity of HK$556 million, primarily comprising unlisted equity investments, listed equity investments, and cash and cash equivalents Financial Position Statement Summary (as of June 30, 2024) | Item | Amount (HK$ Thousand) | | :--- | :--- | | **Non-current assets** | 212,296 | | **Current assets** | 345,388 | | **Total assets** | **557,684** | | **Total equity** | **555,777** | | **Total liabilities** | 1,907 | | **Net asset value per share (HK$)** | 0.043 | [Condensed Statement of Changes in Equity](index=19&type=section&id=%E7%B0%A1%E6%98%8E%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This statement reflects changes in shareholders' equity during the reporting period, with total equity increasing from approximately HK$548 million at the beginning of the period to HK$556 million at the end, primarily due to the HK$8.109 million total comprehensive income recorded during the period Summary of Changes in Equity (for the Six Months Ended June 30, 2024) | Item | Amount (HK$ Thousand) | | :--- | :--- | | As at January 1, 2024 (audited) | 547,668 | | Total comprehensive income for the period | 8,109 | | **As at June 30, 2024 (unaudited)** | **555,777** | [Condensed Statement of Cash Flows](index=20&type=section&id=%E7%B0%A1%E6%98%8E%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This statement summarizes cash inflows and outflows during the reporting period, with operating activities generating approximately HK$150 million in net cash inflow, primarily from investment sales, leading to a significant increase in period-end cash and cash equivalents to approximately HK$195 million Cash Flow Summary (for the Six Months Ended June 30, 2024) | Item | Amount (HK$ Thousand) | | :--- | :--- | | Net cash generated from operating activities | 150,250 | | Net cash flows from investing activities | 5,092 | | Net cash used in financing activities | (421) | | **Net increase in cash and cash equivalents** | **154,921** | | Cash and cash equivalents at beginning of period | 40,578 | | **Cash and cash equivalents at end of period** | **195,499** | [Summary of Notes to the Financial Statements](index=21&type=section&id=%E7%B0%A1%E6%98%8E%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) The notes to the financial statements provide detailed explanations and supplementary information for various items, including analyses of turnover composition, earnings per share calculation, fair value measurement of investments, share option scheme details, and related party transactions Note 3: Revenue Composition Details | Item | Amount (HK$ Thousand) | | :--- | :--- | | Bank interest income | 1,681 | | Dividend income from Hong Kong listed equity securities | 3,411 | | Net realized gains on disposal of investments | 24,522 | | Net unrealized (losses) on investments | (17,771) | | **Total Revenue** | **11,843** | - Note 6: Basic earnings per share is calculated based on profit attributable to owners of approximately **HK$8,109,000** and a weighted average of **12,801,578,629** issued shares; diluted earnings per share is not applicable due to the absence of potential dilutive ordinary shares[54](index=54&type=chunk) - Note 8: As of June 30, 2024, the company's Hong Kong listed equity securities had a market value of approximately **HK$53,159,000**, with holdings in Alibaba Group valued at approximately **HK$48,575,000**, representing about **8.7%** of the company's total assets[57](index=57&type=chunk) - Note 14: During the reporting period, the company paid **HK$240,000** in investment management fees to related party Everbright Securities (Hong Kong) Limited and **HK$480,000** in rent to New Times Group (China) Limited[73](index=73&type=chunk)

Financial Assets - As of December 31, 2023, the company held approximately HKD 137,382,000 in listed equity securities, with a fair value based on current buying prices[8] - The company owns 689,000 shares of Alibaba Group, valued at approximately HKD 52,088,000, representing about 9.5% of the company's total assets[8] - The company also holds 1,220,000 shares of China Mobile, valued at approximately HKD 79,056,000, accounting for about 14.4% of the company's total assets[8] - The company has no other significant investments that account for more than 5% of total assets as of December 31, 2023[2] Share Options - As of December 31, 2023, the total number of share options granted under all plans was 528,868,422 shares, representing approximately 4.1% of the company's issued ordinary shares[9] - The total number of options authorized for grant under the share option plan as of December 31, 2023, was 169,070,153 shares[15] - The number of shares available for granting share options under all plans is 697,938,575 shares, which is about 5.5% of the company's issued ordinary shares[4] - The company has not canceled any share options as of the reporting date[3] - The company believes that granting share options without performance targets helps maintain the independence of the grantees and protects the interests of all shareholders[16] Acquisitions and Disposals - The company has not disclosed any significant acquisitions or disposals apart from what is mentioned in the annual report[1]

Investment Strategy and Performance - The company holds investments in five unlisted companies with book values of approximately HKD 36.15 million, HKD 53.93 million, HKD 40.96 million, HKD 34.94 million, and HKD 44.25 million respectively[13]. - The company focuses on innovative business models, such as investing in photovoltaic buildings that generate income from power companies instead of charging rent to users[15]. - The company aims to explore investment opportunities in innovative business models while fulfilling social responsibilities and leveraging investment for good[18]. - The company has not purchased or sold any listed company investments during the fiscal year ending December 31, 2023[14]. - The company continues to adhere to listing rules and established investment strategies while carefully controlling risks and seizing opportunities[10]. - The company has made significant breakthroughs in five industry sectors: new energy, new light sources, new materials, new health, and new capital[7]. - The company’s investments in unlisted companies are primarily in sectors such as energy storage products, LED lighting, health communication products, and asset management[9]. - The company’s investment strategy focuses on long-term capital appreciation through investments in quality listed and non-listed companies primarily in Hong Kong and China[54]. - The company plans to maintain a balanced risk profile by investing across various sectors, including technology, telecommunications, and life sciences[55]. - The company may engage in borrowing for investment financing, with total borrowings not exceeding 50% of the latest published net asset value[56]. - The company primarily invests in high-quality listed and unlisted companies, aiming for medium to long-term capital appreciation in the asset securitization process in China and Hong Kong[58]. - The private equity investment market in China is becoming increasingly competitive, with more investment firms entering the space, leading to challenges in acquiring potential investment targets[59]. - The company faces operational risks related to investment project evaluation and selection, which can impact investment time costs and returns[62]. - The value of the company's investments is subject to fluctuations in the stock market due to macroeconomic factors, affecting the net asset value[63]. - The company is subject to legal and regulatory risks in China, where the legal framework is still developing, potentially limiting legal protections for investors[64]. - The company’s investments are primarily in RMB, and fluctuations in the RMB exchange rate can impact the value of its investments and reported net asset value in HKD[68]. - Foreign exchange regulations in China may restrict the company's ability to repatriate profits, dividends, and capital, affecting its capacity to distribute dividends to investors[69]. Financial Performance - For the year ended December 31, 2023, the company's revenue was approximately HKD 387,620,000, a decrease of 14.1% from HKD 451,249,000 for the year ended December 31, 2022[23]. - The company recorded a net loss of approximately HKD 3,149,000 from the sale of investments measured at fair value through profit or loss, compared to a net gain of HKD 10,594,000 in the same period of 2022[23]. - The net profit attributable to shareholders for the year ended December 31, 2023, was approximately HKD 2,193,000, down 61.8% from HKD 5,756,000 in 2022[23]. - The company's net asset value as of December 31, 2023, was approximately HKD 547,668,000, a decrease from HKD 563,257,000 in 2022, with a net asset value per share of HKD 0.043 compared to HKD 0.044 in 2022[23]. - The company had unrealized holding gains of approximately HKD 6,412,000 from investments measured at fair value through profit or loss as of December 31, 2023[28]. - The company held cash and bank balances of approximately HKD 40,578,000 as of December 31, 2023, with a zero debt-to-equity ratio[34]. - The company’s distributable reserves as of December 31, 2023, are approximately HKD 419,652,000, a decrease from HKD 435,241,000 in 2022, representing a decline of about 3.5%[137]. - The company did not declare any dividends for the year, consistent with the previous year where no dividends were declared[133]. Corporate Governance - The board of directors consists of two executive directors and three independent non-executive directors, with no specified term for non-executive directors[76]. - The company adheres to corporate governance standards and has established guidelines for securities trading by employees to prevent insider trading[73]. - The board members' attendance at the annual general meeting and board meetings for the year ending December 31, 2023, was recorded, with all executive directors attending 100% of the meetings[78]. - The company has a board diversity policy aimed at ensuring a balanced mix of skills, experience, and diversity among board members, considering factors such as gender, age, and professional background[82]. - The audit committee, composed entirely of independent non-executive directors, held 2 meetings during the year, with full attendance from its members[91]. - The remuneration committee, consisting of three independent non-executive directors and one non-executive director, also achieved full attendance in its meetings[87]. - The nomination committee, responsible for proposing director appointments, had a 100% attendance rate for its members during the year[90]. - The company has appointed a dedicated internal compliance officer to oversee its internal control system, reflecting its commitment to effective governance[94]. - The independent non-executive directors confirmed their independence in accordance with the listing rules, ensuring unbiased oversight of the company's operations[81]. - The company has established an executive committee to manage daily operations, which is composed of all executive directors[86]. - The board's commitment to diversity is reflected in the appointment of new directors, including the recent appointment of Ms. Qin Han[82]. - The company has maintained a high level of governance with regular reviews and evaluations of its business performance and operational matters[86]. - The company has established procedures to prevent unauthorized use or sale of assets, ensuring accurate accounting records for reliable financial information[95]. - The audit committee and the board believe that the internal control system is sufficient and effective[96]. - The financial statements for the year ending December 31, 2023, were prepared on a going concern basis and in accordance with applicable Hong Kong Financial Reporting Standards[98]. - The auditor's fee for the review year was HKD 300,000[101]. - All current directors participated in continuous professional development during the financial review year, including attending seminars and forums[102]. Social Responsibility and Sustainability - The company is committed to environmental and social sustainability, adhering to relevant environmental laws and regulations[118]. - The company maintains ongoing communication with shareholders through various channels, including its website[110]. - Key ESG issues identified include environmental management, social responsibility, and governance accountability[170]. - The company emphasizes corporate social responsibility through various initiatives, including community investment and anti-corruption measures[173]. - The company encourages innovative thinking among employees to develop solutions for social responsibility initiatives[174]. - The company implemented energy-saving measures, including mandatory shutdown of office lighting after 10 minutes of inactivity and ensuring computers are turned off before leaving for the day[182]. - The company encourages a paperless office by reducing printer usage and promoting double-sided printing when printing is necessary[191]. - The company has established a comprehensive procurement system for energy-efficient and environmentally friendly electrical products, regularly auditing for efficiency[179]. - The company provides training on energy conservation and encourages employees to purchase eco-friendly products[180]. - The electricity consumption in the Hong Kong office for 2023 was 5,696 kWh, resulting in greenhouse gas emissions of 3,873 kg CO2-e, a slight decrease from 5,754 kWh and 4,085 kg CO2-e in 2022[192]. - 100% of the paper used in 2023 was sourced from suppliers with a "zero deforestation commitment," maintaining the same percentage as in 2022[185]. - In 2023, the office staff number decreased to 7, with printing paper usage at 6,828 A4 sheets, compared to 11 staff and 5,731 sheets in 2022[189]. Employee Development and Compensation - The total employee compensation for the year was approximately HKD 2,205,000, an increase from HKD 1,493,000 in 2022, with a reduction in staff from 21 to 18 employees[38]. - The workforce consists of 18 employees as of December 31, 2023, down from 21 in 2022, with a gender ratio of approximately 2:1 in favor of females[196]. - The company emphasizes employee development and offers rewards based on individual performance and contributions[200]. - A fair and transparent reward program is in place, with annual salary structure reviews and monthly performance assessments to ensure competitive compensation[200]. - Mandatory provident fund and accident insurance are provided for all employees[200]. - Employees can enjoy various product and service discounts from business partners to enhance their sense of belonging[200]. - The company participated in the "Good MPF Employer" recognition program for the 2022-2023 fiscal year and received accolades[200]. - Employee performance evaluation guidelines have been established to reflect departmental performance, with bonuses tied to individual performance and company results[200]. - The company adheres to a people-centric employment policy, viewing employees as its most valuable asset and driving force[200]. - Professional qualification attainment is encouraged, with necessary subsidies and allowances provided to enhance personal development and work capabilities[200]. - The company aims to motivate employees to actively engage in their work in exchange for rewards[200].

Financial Performance - For the year ended December 31, 2023, the company's revenue was approximately HKD 387.62 million, a decrease of 14.1% from HKD 451.25 million in the previous year[3]. - The net loss from investments measured at fair value through profit or loss was approximately HKD 3.15 million, compared to a net gain of HKD 10.59 million in the previous year[3]. - The net profit attributable to shareholders for the year was approximately HKD 2.19 million, down 61.9% from HKD 5.76 million in the previous year[3]. - The basic earnings per share for the year was HKD 0.017, down from HKD 0.045 in the previous year[5]. - The total comprehensive expenses for the year amounted to approximately HKD 15.68 million, compared to HKD 47.75 million in the previous year[5]. - The company's profit before tax for 2023 was HKD 2,193,000, a decrease of 61.8% from HKD 5,756,000 in 2022[20]. - Basic earnings per share for 2023 were HKD 0.000171, down from HKD 0.000449 in 2022, reflecting a decline of approximately 61.8%[22]. - The company reported no tax expenses for both 2023 and 2022 due to no taxable profits generated[19]. Asset Valuation - The company's net asset value as of December 31, 2023, was approximately HKD 547.67 million, a decrease from HKD 563.26 million in the previous year[4]. - The total assets less current liabilities were approximately HKD 549.05 million, down from HKD 563.26 million in the previous year[6]. - The company's net asset value per share as of December 31, 2023, is HKD 0.043, compared to HKD 0.044 as of December 31, 2022[42]. - The company's non-listed equity securities amounted to HKD 210,221,000 as of December 31, 2023, compared to HKD 228,092,000 in 2022, reflecting a decrease of approximately 7.8%[26]. - The fair value adjustment for investments in subsidiaries resulted in a cumulative loss of HKD 127,804,000 for the year, impacting the overall asset valuation[26]. Investment Strategy - The company continues to focus on investments primarily in listed and unlisted companies in Hong Kong and China for medium to long-term capital appreciation[7]. - The company has invested in various sectors including renewable energy, new materials, and health communication, focusing on energy conservation and emission reduction[45]. - The company has established a strategic development plan for solar energy products, emphasizing production and research[45]. - The company’s strategy includes long-term holding of these investments, classified as equity investments through other comprehensive income to mitigate volatility in profit and loss statements[28]. - The company focuses on innovative business models, such as investing in photovoltaic buildings and debt securities, which do not charge users but generate income from power companies and index-linked returns[51]. Cash Flow and Financial Position - The company's cash and bank balances increased to approximately HKD 40.58 million from HKD 6.66 million in the previous year[6]. - The company has a cash and bank balance of approximately HKD 40,578,000 as of December 31, 2023, with a zero debt-to-equity ratio[55]. - The company has not engaged in any significant foreign exchange risk and will continue to monitor the situation[56]. - The company has not pledged any assets or incurred any significant contingent liabilities as of December 31, 2023[61]. Employee and Operational Information - As of December 31, 2023, the company employed 18 staff members, a decrease from 21 in 2022[70]. - Total compensation paid to staff, including directors' remuneration, amounted to approximately HKD 2,205,000, up from HKD 1,493,000 in 2022[70]. - Employee benefits expenses increased to HKD 2,205,000 in 2023 from HKD 1,493,000 in 2022, an increase of approximately 47.5%[22]. Compliance and Reporting - The auditor, Long Green (Hong Kong) CPA Limited, confirmed that the preliminary financial statements align with the audited financial statements for the year ending December 31, 2023[71]. - The annual report will be published on the stock exchange and the company's website at an appropriate time[72]. - The company has adopted the standards for directors' securities trading as per the listing rules, ensuring compliance with the established code[68]. - The company has maintained at least 25% of its shares in public circulation as required by the stock exchange regulations for both 2023 and 2022[40]. Dividends and Government Subsidies - The company did not recommend any dividends for both 2023 and 2022 fiscal years[23]. - The company received government subsidies totaling approximately HKD 87,000 in 2022, which were not repeated in 2023[18].

Financial Performance - Total proceeds from the sale of securities amounted to HKD 77,028,000 for the six months ended June 30, 2023, compared to HKD 52,569,000 for the same period in 2022, representing a 46.5% increase [6]. - Revenue for the six months ended June 30, 2023, was approximately HKD 10,254,000, up from HKD 6,060,000 in 2022, indicating an increase of 69.3% [10]. - Net profit attributable to the company's owners for the six months ended June 30, 2023, was HKD 7,136,000, compared to HKD 2,212,000 in 2022, reflecting a significant increase of 222.4% [10]. - Total revenue for the six months ended June 30, 2023, was HKD 10,254,000, an increase of 69.4% compared to HKD 6,060,000 for the same period in 2022 [53]. - The company reported a pre-tax profit of HKD 7,136,000 for the six months ended June 30, 2023, compared to HKD 2,212,000 for the same period in 2022, representing a significant increase of 223.5% [53]. - Earnings per share for the period was HKD 0.056, up from HKD 0.017 in the previous year, reflecting a growth of 229.4% [53]. Investment Strategy - The company has made strategic investments in sectors such as renewable energy, new materials, and health communication, aiming for mid-term capital appreciation [15]. - The company’s investment strategy focuses on sectors that promote energy conservation and emission reduction, including solar energy and LED lighting [15]. - The company’s investment strategy remains focused on capital appreciation through investments in listed and unlisted companies primarily in Hong Kong and mainland China [60]. - The company plans to continue exploring investment opportunities to achieve mid-term capital appreciation [18]. Dividends and Share Capital - The company did not declare an interim dividend for the six months ended June 30, 2023, to retain capital for operational needs and potential investment opportunities [7]. - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2023, compared to no dividend in 2022 [97]. - The company has a total issued and paid-up share capital of HKD 128,016,000, with 12,801,578,629 shares issued as of June 30, 2023 [80]. - The total number of unexercised stock options as of June 30, 2023, is 528,868,422, with a weighted average remaining contractual life of 1.9 years [85]. Financial Position - As of June 30, 2023, the company's cash and cash equivalents were approximately HKD 3.70 million, with a zero debt-to-equity ratio [25]. - The company has a zero debt situation, indicating a strong financial position [25]. - The company has no significant contingent liabilities or mortgaged assets as of June 30, 2023 [28]. - The company has not raised any bank financing during the review period and is expected to have sufficient financial resources for ongoing operations and development needs [25]. - The company has no significant liquidity risk related to its lease liabilities, which are monitored by its treasury function [78]. Corporate Governance - The company aims to maintain high levels of corporate governance to enhance transparency and protect shareholder interests [38]. - The executive committee, chaired by the CEO, regularly reviews the company's business performance and operational matters [41]. - The remuneration committee, consisting of three independent non-executive directors, determines the remuneration policy for executive directors [42]. - The nomination committee is responsible for recommending candidates for the board of directors [43]. - The audit committee oversees the financial reporting process and internal controls of the company [44]. - The company has deviated from certain corporate governance codes, such as having the same individual serve as both chairman and CEO, which it believes is in the best interest of the company [39]. Assets and Investments - The company holds investments in five unlisted companies with a total book value of approximately HKD 228,092,000 as of June 30, 2023 [13]. - Investments in listed securities as of June 30, 2023, totaled HKD 296,891,000, compared to HKD 130,970,000 as of December 31, 2022, showing a substantial increase [19]. - The fair value of investments in listed equity securities in Hong Kong increased to HKD 141,874,000 as of June 30, 2023, from HKD 130,970,000 as of December 31, 2022 [71]. - The company held structured product investments valued at HKD 155,017,000 as of June 30, 2023, with a total fair value of HKD 296,891,000 for investments measured at fair value through profit or loss [71]. - The fair value of equity investments measured at fair value through other comprehensive income increased by HKD 192,434,000 due to market price adjustments [93]. Employee Compensation - The company has 21 employees as of June 30, 2023, with total compensation amounting to approximately HKD 952,000, an increase from HKD 711,000 in 2022 [29].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 CHINA INNOVATION INVESTMENT LIMITED 中 國 創 新 投 資 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1217） 截至二零二三年六月三十日止六個月 中期業績 中國創新投資有限公司（「本公司」）董事（「董事」）局（「董事局」）欣然公佈本公司截至 二零二三年六月三十日止六個月之未經審核中期業績連同二零二二年同期之比較數字如 下： 截至二零二三年六月三十日止六個月，本公司錄得出售證券之所得款項總額約為 77,028,000港元（二零二二年：52,569,000港元）。 截至二零二三年六月三十日止六個月，本公司之收益錄得約10,254,000港元，主要包 ...