Financial Performance - For the fiscal year ended December 31, 2022, the total proceeds from investment sales amounted to approximately HKD 451,249,000, a decrease from HKD 544,048,000 in the previous year, representing a decline of about 17%[19] - The net realized gains from investments measured at fair value through profit or loss for the year were approximately HKD 10,594,000, compared to a net loss of HKD 52,751,000 in the prior year[19] - The company recorded a net profit attributable to shareholders of approximately HKD 5,756,000 for the year, a significant improvement from a net loss of HKD 33,923,000 in the previous year[19] - As of December 31, 2022, the company's net asset value was approximately HKD 563,257,000, down from HKD 611,002,000 in the previous year, reflecting a decrease of about 7.8%[19] - The net asset value per share was approximately HKD 0.044, compared to HKD 0.048 in the previous year[19] - The company reported a total revenue of HKD 295,000 for the fiscal year, reflecting a commitment to maintaining financial integrity and transparency[79] - The company's distributable reserves as of December 31, 2022, were approximately HKD 435,241,000, down from HKD 482,986,000 in 2021[108] - The company decided not to declare any dividends for the year, consistent with the previous year[104] Investment Strategy - The company is actively seeking profitable investment opportunities in the fields of energy conservation and emission reduction, aiming to build a complete industrial chain for green low-carbon living[15] - The company continues to focus on investment in quality listed and non-listed companies to achieve mid-term capital appreciation as its main business strategy[11] - The company plans to explore investment opportunities in the "new energy," "new light source," "new materials," "new health," and "new capital" sectors, aiming for substantial project breakthroughs in these areas[11] - The company's primary investment objective is to achieve medium to long-term capital appreciation by investing at least 70% of its capital in listed and unlisted companies primarily located in Hong Kong and China[46] - The company aims to balance risks across various sectors, including information technology, telecommunications, manufacturing, services, real estate, infrastructure, life sciences, and environment[46] - The board believes that current market conditions present unique and attractive investment opportunities, particularly in companies with strong growth potential and solid management[46] Market Outlook - The company maintains a cautious outlook on the securities market due to the ongoing uncertainty caused by the COVID-19 pandemic[20] - The global economic activity is slowing down, with inflation at its highest in decades, but the company anticipates new opportunities as COVID-19 control measures are relaxed in China[44] - The company will continue to seek optimal investment opportunities despite tightening financial conditions and geopolitical tensions affecting the economic outlook[44] Risk Management - The company faces significant competition in the private equity investment market, leading to challenges in acquiring potential investment targets[51] - The company is exposed to economic risks, particularly due to the macroeconomic development of China, which is classified as an emerging market[50] - Legal and regulatory risks are present, as the company's investments are primarily governed by Chinese laws, which may have limited legal protections for investors[54] - Market risks are significant, as stock prices can be affected by macroeconomic factors, leading to fluctuations in the company's net asset value[53] - Currency risk is a concern, as the majority of investments are in China, and fluctuations in the Renminbi against the Hong Kong dollar can impact the value of investments[56] - The company is subject to foreign exchange risk due to regulations on the remittance of profits, dividends, and investment returns out of China, which may limit its ability to pay dividends to investors[57] Corporate Governance - The board consists of two executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2022[63] - The attendance rate for the annual general meeting was 100% for all directors, indicating strong engagement in governance[64] - The company has adopted a diversity policy for its board, recognizing the benefits of diverse skills, experiences, and backgrounds among its members[66] - The remuneration committee is responsible for determining the compensation policies for executive directors and senior management, ensuring alignment with performance[70] - The company has established a written guideline for employees regarding securities trading to prevent insider trading[61] - The board has a commitment to high standards of corporate governance, adhering to relevant regulations and codes, with some deviations noted[59] - The executive committee, composed of all executive directors, regularly reviews and evaluates the company's business performance and operational matters[69] - The company’s chairman and CEO roles are held by the same individual, which deviates from best practice guidelines but is deemed appropriate for maintaining policy continuity[67] - The company’s independent non-executive directors have confirmed their independence in accordance with regulatory requirements[65] - The Audit Committee confirmed the independence of the external auditor, ensuring the objectivity of the financial statements[77] - The company has established an internal compliance officer position to enhance internal controls and risk management[75] - The Board of Directors has reviewed the effectiveness of the internal control system, deeming it robust enough to protect shareholder interests[74] - The Nomination Committee has maintained a 100% attendance rate for its members during the year, indicating strong governance practices[72] - The company has implemented procedures to prevent unauthorized use or sale of assets, ensuring accurate financial reporting[74] - All current directors participated in continuous professional development, enhancing their understanding of governance and regulatory updates[80] Employee and Social Responsibility - The company has 21 employees as of December 31, 2022, down from 27 in the previous year[35] - The total employee compensation, including directors' remuneration, was approximately HKD 1,493,000 for the year, compared to HKD 1,413,000 in the previous year[35] - The gender ratio within the company is approximately 2:1, with a majority of employees aged between 40 to 50 years, accounting for about 45%[159] - The company emphasizes employee development by providing weekly internal training sessions, with over 50 hours of training conducted in 2021[174] - The company has established a fair and transparent reward system, reviewing compensation structures annually and performance monthly to ensure competitive salaries[166] - In 2022, the company donated anti-epidemic supplies valued at approximately HKD 100,000 to support community efforts against the pandemic[172] - The company has not reported any work-related fatalities or injuries leading to employee absenteeism in 2022, highlighting its commitment to health and safety[169] - The company actively promotes equal employment opportunities and adheres to local labor laws, ensuring compliance with various anti-discrimination regulations[177] - The company focuses on promoting social responsibility through various initiatives, including community engagement and anti-corruption measures[139] Environmental Sustainability - The company is committed to environmental and social sustainability, adhering to relevant environmental laws and regulations[92] - In 2022, the company reduced its printing paper usage to 5,731 A4 sheets, down from 7,311 sheets in 2021, reflecting a decrease of approximately 21.6%[153] - The company's electricity consumption in its Hong Kong office was 5,754 kWh in 2022, resulting in greenhouse gas emissions of 4,085 kg CO2 equivalent, compared to 7,014 kWh and 4,980 kg CO2 equivalent in 2021, indicating a reduction in both energy use and emissions[154] - 100% of the paper used in 2022 was sourced from suppliers with a "zero deforestation commitment," maintaining the same percentage as in 2021[148] - The company implemented energy-saving measures, including requiring employees to turn off office lights after 10 minutes of leaving their work area and ensuring computers and air conditioning are turned off before leaving for the day[146][149] - The company has established standardized energy-efficient procurement standards for office electronic equipment, ensuring compliance with national environmental regulations[144] - The company encourages employees to utilize digital communication methods to minimize business travel, contributing to its environmental sustainability efforts[142] - The company has designed a standardized smart office equipment control solution to manage lighting and air conditioning, aimed at reducing energy consumption[152] - The company has committed to enhancing its corporate social responsibility initiatives by regularly reviewing and updating its implementation plans[140] Compliance and Internal Controls - The company has a risk management framework in place, overseen by the Board, to assess and manage risks aligned with strategic objectives[84] - The management team is responsible for setting strategic direction and monitoring execution, while the board oversees management performance[184] - The company regularly reviews internal control procedures to prevent corruption and conducts training courses on anti-corruption measures[182] - The board is responsible for preparing financial statements that reflect a true and fair view in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[198] - The board must assess the company's ability to continue as a going concern and disclose relevant matters related to this assessment[198] - The audit committee oversees the company's financial reporting process[199] - The financial statements must be free from material misstatement, whether due to fraud or error[198] - The board is required to adopt the going concern basis of accounting unless liquidation or cessation of operations is intended[198] - The company must implement necessary internal controls related to the preparation of financial statements[198] Shareholder Communication - The company maintains ongoing communication with shareholders through various channels, including its website and annual meetings[86] - The company has a website for investor relations, providing updates on business developments and operational information[90]

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） 二 零 二 二 年 全 年 業 績 公 佈 中國創新投資有限公司（「本公司」）董事謹此宣佈本公司截至二零二二年 十二月三十一日止年度之經審核全年業績如下： 業績 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 出 售 投 資 所 得 款 項 總 額 約 為 451,249,000港元，而截至二零二一年十二月三十一日止年度之出售投資所 得款項總額則約為544,048,000港元。 截至二零二二年十二月三十一日止年度之出售透過損益按公平值列賬之 投資之已變現收益淨額約10,594,000港元，而二零二一年同期則為出售透 過損益按公平值列賬之投資已變現虧損淨額約52,751,000港元。 ...

Financial Performance - Total proceeds from the sale of securities amounted to HKD 52,569,000 for the six months ended June 30, 2022, a decrease of 78.1% compared to HKD 240,225,000 in the same period of 2021[12]. - Revenue for the six months ended June 30, 2022, was HKD 6,060,000, down 52.5% from HKD 12,791,000 in the same period of 2021[12]. - Profit attributable to owners for the six months ended June 30, 2022, was HKD 2,212,000, a decline of 78.5% compared to HKD 10,265,000 in the same period of 2021[12]. - The basic earnings per share for the six months ended June 30, 2022, was HKD 0.017, compared to HKD 0.080 in the same period of 2021[12]. - Revenue for the six months ended June 30, 2022, was HKD 6,148 million, a decrease of 52% compared to HKD 12,791 million in the same period of 2021[87]. - The bank interest income for the same period was HKD 2 million, down from HKD 22 million in 2021, indicating a significant decline[87]. - The structural product income decreased to HKD 1,560 million from HKD 4,733 million, reflecting a 67% drop year-over-year[87]. - Basic earnings per share were approximately HKD 2,212,000 for the six months ended June 30, 2022, compared to HKD 10,265,000 in 2021[91]. Investment Activities - Investments in five unlisted companies had a combined book value of approximately HKD 236,705,000 as of June 30, 2022[18]. - The company focuses on investment in quality listed and unlisted enterprises, aiming for mid-term capital appreciation through asset securitization[20]. - The company has made significant breakthroughs in five industry sectors: "new energy," "new light sources," "new materials," "new health," and "new capital" through various investments[20]. - The company invested in solar energy technology through Sun Creation Limited, focusing on the development and production of solar cell application products[20]. - Future outlook includes continued exploration of investment opportunities to achieve mid-term capital appreciation[24]. - The company reported unrealized losses of HKD 47,883,000 from its investment in Alibaba Group, with a cost basis of HKD 124,982,000 as of June 30, 2022[28]. Financial Position - As of June 30, 2022, the fair value of listed equity securities held by the company was HKD 147,962,000, compared to HKD 143,157,000 as of December 31, 2021, representing a growth of 5.3%[25]. - The company held structured products valued at HKD 158,622,000 as of June 30, 2022, with a total investment value of HKD 306,584,000, indicating a significant increase from the previous period[25]. - The company's cash and cash equivalents amounted to approximately HKD 10,045,000 as of June 30, 2022, with a zero debt-to-equity ratio, indicating a net cash position[38]. - Total assets as of June 30, 2022, were HKD 613,214 thousand, slightly up from HKD 611,002 thousand as of December 31, 2021[75]. - The company's cash and cash equivalents decreased to HKD 10,045 thousand as of June 30, 2022, from HKD 13,381 thousand at the beginning of the period, representing a decline of 25.5%[81]. - The total net asset value of the company is approximately HKD 613,214,000 as of June 30, 2022, compared to HKD 611,002,000 as of December 31, 2021[121]. Corporate Governance - The company has complied with the corporate governance code, except for the deviation regarding the roles of chairman and CEO being held by the same person[56]. - The executive committee, chaired by Xiang Xin, regularly reviews the company's business performance and operational matters[59]. - The remuneration committee, consisting of three independent non-executive directors, determines the remuneration policy for executive directors[60]. - The nomination committee is responsible for recommending candidates for the board and ensuring the selection of qualified individuals[61]. - The company has established a high level of corporate governance to enhance transparency and protect shareholder interests[56]. Shareholder Information - The company has a 67.75% equity interest in Solar Creation Limited, which focuses on solar cell products, with no dividends received during the period[33]. - The company has a 52.68% equity interest in Lian Guan Future Limited, which is involved in the construction decoration materials business, with no dividends received during the period[36]. - The company holds a 56.84% equity interest in Guangyuan Starry Sky Limited, which is engaged in asset management, with no dividends received during the period[36]. - Harvest Rise Investments Limited holds 3,817,807,905 shares, representing a 29.82% stake in the company[52]. - The company’s chairman and CEO, Xiang Xin, has beneficial interests in 60,394,737 shares, which is approximately 0.47%[49]. - The number of issued and fully paid ordinary shares is 12,801,578,629 as of June 30, 2022, consistent with the figure from December 31, 2021[121]. Employee Compensation - The total compensation paid to employees was approximately HKD 711,000 for the period, an increase from HKD 673,000 in the previous year, reflecting a 5.7% rise in employee remuneration[44]. Risk Management - The company maintained a 0% foreign exchange risk exposure, as it primarily conducts transactions in RMB and HKD, with no significant foreign exchange fluctuations anticipated[41]. - The company has no significant contingent liabilities as of June 30, 2022, consistent with the previous year[131]. Other Information - The company did not recommend an interim dividend for the six months ended June 30, 2022, to retain capital for operational needs and potential investment opportunities[9]. - The company did not engage in any purchases, sales, or redemptions of its listed securities during the six-month period[67]. - There were no significant events after the reporting period, indicating stability in operations[66]. - The company has not raised any bank financing during the review period, relying solely on its available funds for operations[38].

Financial Performance - The total proceeds from investment sales for the year ended December 31, 2021, amounted to approximately HKD 544,048,000, compared to HKD 369,878,000 for the year ended December 31, 2020, representing a year-over-year increase of 47%[11]. - The net loss attributable to shareholders for the year ended December 31, 2021, was approximately HKD 33,923,000, compared to a loss of HKD 9,813,000 in the same period of 2020, indicating a significant increase in losses[20]. - As of December 31, 2021, the net asset value of the company was approximately HKD 611,002,000, down from HKD 653,748,000 in 2020, with a net asset value per share of HKD 0.05, unchanged from the previous year[20]. - The company recorded a net realized loss of approximately HKD 52,751,000 from investments measured at fair value through profit or loss for the year ended December 31, 2021, compared to a net gain of HKD 15,657,000 in the previous year[20]. - The company's distributable reserves as of December 31, 2021, were approximately HKD 482,986,000, a decrease from HKD 525,732,000 in 2020[134]. - The company did not declare any dividends for the year, consistent with the previous year[130]. - The company has a cash and bank balance of approximately HKD 13,381,000 as of December 31, 2021, with a zero debt-to-equity ratio[38]. Investment Strategy - The company is actively seeking profitable investment opportunities in energy-saving and emission-reduction sectors to build a complete industrial chain[15]. - The company plans to continue exploring investment opportunities to achieve mid-term capital appreciation[16]. - The company has invested in various sectors, including renewable energy, new materials, and health communication products, aiming for breakthroughs in five key industries[12][14]. - The company's primary investment strategy focuses on investing in quality listed and unlisted companies in Hong Kong and China, aiming for mid-term capital appreciation[54]. - The company aims to balance risks by investing in various sectors, including IT, telecommunications, manufacturing, and life sciences[54]. - The company may seek to invest in companies with strong growth potential and solid management, particularly those with advanced technology and R&D capabilities[54]. Market and Economic Outlook - The company maintains a cautious outlook on the securities market due to ongoing uncertainties from the COVID-19 pandemic and the US-China trade war[21]. - The company anticipates that its investment projects, primarily operating in China, will be affected by the economic recovery signs in China in 2021[51]. - The company faces economic risks due to its investments being significantly influenced by the macroeconomic development in China[58]. - The company is experiencing increased competition in the private equity investment market, leading to challenges in securing potential investment targets[59]. - The company is subject to market risks, with stock prices influenced by macroeconomic factors, potentially affecting the value of its listed stock holdings and net asset value[63]. Corporate Governance - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring governance and oversight of the company's operations[76]. - The company adheres to corporate governance standards, although there are deviations regarding the roles of the chairman and CEO, which are held by the same individual[70]. - The board has a high attendance rate at meetings, indicating active participation in governance and decision-making processes[78]. - The company is committed to maintaining high levels of corporate governance to protect shareholder interests and ensure transparency[69]. - The company has established a board diversity policy to ensure a balanced mix of skills, experience, and diversity among board members[83]. Risk Management - The board of directors is responsible for the overall risk management and internal control systems to protect the interests of the company and its shareholders[110]. - The audit committee reports to the board and is empowered to continuously monitor and assess the effectiveness of relevant systems[111]. - The company has implemented an internal compliance officer position to enhance internal controls, which operates independently from the business operations[98]. - The board has reviewed the effectiveness of the internal control system and deemed it robust enough to protect shareholder and employee interests[97]. Environmental and Social Responsibility - The company is committed to environmental and social sustainability, ensuring compliance with environmental laws and regulations[118]. - The company has identified key ESG issues, including environmental impact control, employment practices, and management responsibility[169]. - The company is committed to reducing carbon emissions and enhancing resource efficiency in its operations[174]. - The company encourages employees to use digital communication methods to minimize business travel[175]. - The company has implemented a "green" office standard to promote environmental sustainability[175]. - The company collaborates with suppliers for recycling materials or donating non-reusable IT equipment to non-profit organizations[189]. Employee and Compensation - The total employee compensation for the year was approximately HKD 1,413,000, a decrease from HKD 1,698,000 in the previous year[42]. - The company has established a mandatory provident fund retirement benefits plan for all its Hong Kong employees, with contributions based on a percentage of employees' basic salaries[160]. - The company maintained a workforce of 27 employees as of December 31, 2021, consistent with the previous year[197]. - The gender ratio within the company is approximately 2:1, promoting diversity in the workforce[197]. Audit and Compliance - The total audit fees paid to the external auditor for the year amounted to HKD 290,000[102]. - The audit committee has confirmed the independence of the external auditor, Long Green (Hong Kong) CPA Limited, and recommended their reappointment at the upcoming annual general meeting[99]. - The company has committed to preparing financial statements in accordance with the Hong Kong Financial Reporting Standards[101]. Shareholder Communication - The company maintains continuous communication with shareholders through various channels, including its website, where announcements and reports are published[112]. - The company has a dedicated website for investor relations, providing updates on business developments and operational information[116]. - The independent non-executive directors are required to attend the annual general meeting to understand shareholders' opinions fairly[114].

CHINA INNOVATION INVESTMENT LIMITED 中國創新投資有限公司 （股份代號: 1217） （於開曼群島註冊成立之有限公司） 2021 中期報告 頁次 公司資料2 財務摘要3 管理層討論及分析4 權益披露11 企業管治及其他資料13 簡明損益及其他全面收益表16 簡明財務狀況表17 簡明權益變動表18 簡明現金流量表19 簡明財務報表附註20 中國創新投資有限公司 中期報告 2021 1 目錄 中國創新投資有限公司 中期報告 2021 2 | --- | --- | |-----------------------------------------------------|--------------------------------------------------------| | | | | 公司資料 | 主要營業地點 | | 執行董事 | 香港上環 | | 向心先生 （主席兼行政總裁） | 德輔道西 9 號 26 樓 | | 陳昌義先生 | 主要股份過戶登記處及過戶處 | | 獨立非執行董事 | Suntera (Cayman) Limited | | 安靜女士 | ...

in the 1 0 0 1 0 0 0 0 1 1 1 1 0 11:1 - 0 0 0 0 1 0 | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------|-------|-------|-------|-------| | | | | | | | 3 | | | | | | | | | | | | | | | | | | | | | | | | CHINA INNOVATION INVESTMENT LIMITED 中國創新投資有限公司 : (於朗曼群島註冊成立之有限公司) | | | | | | (股份代號: 1217) 年報 2020 | | | | | | | | | | | | - 0 0 -0 0 :1:0: -0 | | | | | | 1 1 1 1 -1 :1 1 0 D 0 0 1 | | | | | 0 0 0 1 C 1 1 1 1 0 1 c 0 0 0 0 0- 0 1 1 0 1 0 ...

CHINA INNOVATION INVESTMENT LIMITED 2020 中期報告 中國創新投資有限公司 （股份代號: 1217） （於開曼群島註冊成立之有限公司 ） 頁次 公司資料2 財務摘要3 管理層討論及分析4 權益披露11 企業管治及其他資料13 簡明損益及其他全面收益表18 中國創新投資有限公司 中期報告 2020 1 目錄 簡明財務狀況表 簡明權益變動表 簡明現金流量表 簡明財務報表附註 19 20 21 22 中國創新投資有限公司 中期報告 2020 2 | --- | --- | |---------------------------------------------------|-------------------------------------------------------------| | | | | 公司資料 | 主要營業地點 香港上環 | | 執行董事 | 德輔道西 9 號 26 樓 | | 向心先生 （主席兼行政總裁） | | | 陳昌義先生 | 主要股份過戶登記處及過戶處 | | 獨立非執行董事 | Royal Bank of CanadaTrust Co ...

[Company Information](index=3&type=section&id=Company%20Information) Provides fundamental information about the company [Chairman's Statement](index=4&type=section&id=Chairman's%20Statement) Outlines the company's strategic direction and investment focus for the year [Business Review and Outlook](index=4&type=section&id=Business%20Review%20and%20Outlook) The company, as an investment firm, primarily seeks medium-term capital appreciation through investments in quality listed and unlisted companies, focusing on five key industrial sectors for future growth Unlisted Investment Portfolio as of December 31, 2019 | Company Name | Book Value (HKD) | | :--- | :--- | | Sun Creation Limited | Approx. 69,819,000 | | Weimei Vision Limited | Approx. 83,080,000 | | Lian Guan Future Limited | Approx. 72,650,000 | | Fengtian Huifu Limited | Approx. 22,781,000 | | Guangyuan Starry Sky Limited | Approx. 63,214,000 | - The company's short-term investments in listed companies were active, with total annual sales proceeds of **HKD 258 million** by the end of 2019, an increase from HKD 234 million in 2018[23](index=23&type=chunk) - The company established a development strategy focusing on five industrial sectors: 'New Energy', 'New Light Source', 'New Materials', 'New Health', and 'New Capital', achieving significant project breakthroughs through investments in companies like Sun Creation, Weimei Vision, Lian Guan Future, Fengtian Huifu, and Guangyuan Starry Sky[24](index=24&type=chunk)[26](index=26&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) Provides an in-depth review of the company's financial performance, investment activities, and strategic outlook for the reporting period [Overall Performance](index=6&type=section&id=Overall%20Performance) The company achieved a significant increase in profit attributable to shareholders for the year ended December 31, 2019, primarily driven by fair value gains from investments Key Financial Indicators for 2019 | Indicator | 2019 | 2018 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Profit Attributable to Shareholders | HKD 23.87 Million | HKD 10.17 Million | +134.7% | | Net Asset Value | HKD 700 Million | HKD 684 Million | +2.24% | | Net Asset Value Per Share | HKD 0.0547 | HKD 0.0535 | +2.24% | | Total Investment Income | Approx. HKD 31.97 Million | - | - | [Significant Investment Acquisitions and Disposals](index=6&type=section&id=Significant%20Investment%20Acquisitions%20and%20Disposals) The company maintained a cautious approach to the securities market in 2019, completing two equity-linked note settlements and acquiring a 25% stake in Fengtian Huifu Co., Ltd - The company successfully settled two equity-linked notes totaling **HKD 200 million**, with Note 1 generating approximately **HKD 11.39 million** in total revenue and Note 2 yielding **HKD 5 million** in interest income[36](index=36&type=chunk)[37](index=37&type=chunk) - On December 20, 2019, the company acquired a **25% equity stake** in Fengtian Huifu Co., Ltd. for a consideration of **HKD 22.781 million** from a subsidiary of China Trends Holdings Limited[39](index=39&type=chunk) [Investment Portfolio](index=7&type=section&id=Investment%20Portfolio) As of the end of 2019, the company's primary investment portfolio comprised five unlisted companies with a total book value of approximately HKD 312 million, representing 44.48% of its net assets Major Unlisted Investment Projects as of December 31, 2019 | Project Name | Headquarters Location | Main Business | Book Value (HKD Thousand) | Percentage of Net Assets (%) | | :--- | :--- | :--- | :--- | :--- | | Lian Guan Overseas | British Virgin Islands | Investment Holding | 72,650 | 10.37% | | Weimei Hong Kong | Hong Kong | Investment Holding | 83,080 | 11.86% | | Sun Hong Kong | Hong Kong | Investment Holding | 69,819 | 9.97% | | Fengtian Hong Kong | Hong Kong | Investment Holding | 22,781 | 3.25% | | Guangyuan Hong Kong | Hong Kong | Investment Holding | 63,214 | 9.03% | | **Total** | | | **311,544** | **44.48%** | - The company's five major unlisted investments (Lian Guan Overseas, Weimei Hong Kong, Sun Hong Kong, Guangyuan Hong Kong, Fengtian Hong Kong) are all investment holding companies, with their primary assets and business operations located in mainland China[41](index=41&type=chunk)[42](index=42&type=chunk)[45](index=45&type=chunk) [Liquidity and Financial Position](index=8&type=section&id=Liquidity%20and%20Financial%20Position) As of the end of 2019, the company maintained a robust financial position with approximately HKD 12.7 million in cash and bank balances, operating solely on internal resources without any bank financing - As of December 31, 2019, the company held cash and bank balances of approximately **HKD 12.701 million**, primarily denominated in Hong Kong Dollars[46](index=46&type=chunk) - The company operates entirely on its own funds, without any bank financing, resulting in a **zero debt-to-asset ratio**[46](index=46&type=chunk) [Employee Information](index=8&type=section&id=Employee%20Information) As of the end of 2019, the company maintained 27 full-time and part-time employees, with total annual remuneration significantly decreasing due to the absence of share-based payments Employee and Remuneration Overview | Indicator | 2019 | 2018 | | :--- | :--- | :--- | | Total Employees | 27 persons | 27 persons | | Total Remuneration | Approx. HKD 1.061 Million | Approx. HKD 1.867 Million | | Of which: Share-based Payments | HKD 0 | HKD 0.924 Million | [Business Strategy and Key Risks](index=11&type=section&id=Business%20Strategy%20and%20Key%20Risks) The company's core strategy is to achieve medium to long-term capital appreciation through investments in quality listed and unlisted companies in Hong Kong and China, while navigating various economic, competitive, operational, market, legal, and exchange rate risks - The company's primary investment objective is to achieve medium to long-term capital appreciation, with at least **70% of investments** to be made in Hong Kong and China, covering various sectors including information technology, manufacturing, services, and property[64](index=64&type=chunk) - The company faces multiple risks, including: - **Economic Risk**: Business is affected by China's macroeconomic development - **Competition Risk**: Intense competition in the private equity investment market - **Operational Risk**: Investee companies may face operational risks due to market changes or erroneous decisions - **Market Risk**: Stock market fluctuations impact the company's net asset value - **Legal and Regulatory Risk**: Uncertainties in China's legal system and policy changes may affect investment value - **Exchange Rate and Foreign Exchange Risk**: RMB exchange rate fluctuations and foreign exchange controls may have an impact[69](index=69&type=chunk)[70](index=70&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) [Corporate Governance Report](index=15&type=section&id=Corporate%20Governance%20Report) Details the company's corporate governance practices, board structure, and internal control mechanisms, highlighting compliance and deviations from established codes [Corporate Governance Practices](index=15&type=section&id=Corporate%20Governance%20Practices) The company strives for high corporate governance standards, though deviations occurred in 2019 regarding the chairman and CEO roles, and temporary non-compliance with independent non-executive director requirements, which were later resolved - Mr. Xiang Xin concurrently served as Chairman of the Board and Chief Executive Officer, deviating from the code's requirement for distinct roles; the Board believes this arrangement helps maintain policy continuity and operational stability[82](index=82&type=chunk)[87](index=87&type=chunk) - Due to the resignations of Mr. Chan Wing Kwong and Mr. Li Wing Hang on November 27, 2019, the number of independent non-executive directors decreased to one, temporarily failing to comply with several Listing Rules regarding the composition of the Board and its committees[87](index=87&type=chunk)[88](index=88&type=chunk)[92](index=92&type=chunk) - The company appointed Ms. An Jing and Mr. Zhang Yu as independent non-executive directors on February 18, 2020, subsequently regaining compliance with the relevant Listing Rules[93](index=93&type=chunk) [Board of Directors and Committees](index=17&type=section&id=Board%20of%20Directors%20and%20Committees) As of the end of 2019, the Board comprised two executive directors and one independent non-executive director, supported by various committees, with the Board holding four meetings during the reporting period Attendance at Board and Committee Meetings in 2019 | Committee | Number of Meetings | Attendance Rate | | :--- | :--- | :--- | | Board of Directors | 4 | Executive Directors and incumbent Independent Non-Executive Directors all 100% attendance | | Audit Committee | 2 | Incumbent members 100% attendance | | Remuneration Committee | 0 | Not applicable | | Nomination Committee | 0 | Not applicable | - The company has a Board Diversity Policy, ensuring diversity among Board members in terms of gender, age, geographical background, and professional expertise[103](index=103&type=chunk) [Internal Control and Financial Reporting](index=20&type=section&id=Internal%20Control%20and%20Financial%20Reporting) The Board is responsible for the effectiveness of internal control systems, which are deemed robust, supported by an independent internal compliance officer, with auditors' fees totaling HKD 274,000 - The Board has reviewed and considers the company's internal control systems to be sound and effective during the reporting period[121](index=121&type=chunk) - To strengthen internal control, the company established an Internal Compliance Officer position, independent of business operations, reporting directly to the Audit Committee and the Board[122](index=122&type=chunk) - For the year ended December 31, 2019, audit fees paid to Evergreen (Hong Kong) CPA Limited amounted to **HKD 274,000**[129](index=129&type=chunk) [Biographies of Directors](index=24&type=section&id=Biographies%20of%20Directors) Provides detailed professional and personal backgrounds for each member of the Board of Directors [Directors' Report](index=26&type=section&id=Directors'%20Report) Presents an overview of the company's performance, capital structure, and key corporate events as reported by the Board of Directors [Results and Share Capital](index=26&type=section&id=Results%20and%20Share%20Capital) The company primarily engaged in investment activities with no significant change in business nature, and the Board resolved not to declare any dividends for the year, with distributable reserves totaling approximately HKD 573 million - The Board resolved not to declare any dividends for the year 2019, consistent with 2018[156](index=156&type=chunk) - As of December 31, 2019, the company's distributable reserves amounted to approximately **HKD 573 million**, an increase from HKD 549 million at the end of 2018[160](index=160&type=chunk) [Directors' and Shareholders' Interests](index=27&type=section&id=Directors'%20and%20Shareholders'%20Interests) The report details directors' interests in share options, with Chairman Xiang Xin holding approximately 60.39 million options, and identifies Harvest Rise Investments Limited as the largest shareholder with a 29.82% stake Directors' Interests in Share Options (December 31, 2019) | Director Name | Number of Shares | Approximate Percentage of Interest | | :--- | :--- | :--- | | Xiang Xin | 60,394,737 | 0.47% | | Chan Wing Kwong | 30,000,000 | 0.23% | | Zhou Zan | 30,000,000 | 0.23% | | Li Wing Hang | 30,197,368 | 0.24% | Major Shareholders' Shareholding (December 31, 2019) | Shareholder Name | Capacity | Number of Shares Held | Shareholding Percentage | | :--- | :--- | :--- | :--- | | Harvest Rise Investments Limited | Beneficial | 3,817,807,905 | 29.82% | | China Science and Technology Education Foundation | Controlled Corporation Interest | 3,817,807,905 | 29.82% | | Haitong Guotai | Trustee | 2,362,720,000 | 18.46% | | Guotai Investment | Beneficial | 2,362,720,000 | 18.46% | [Change of Auditors](index=31&type=section&id=Change%20of%20Auditors) The company's former auditor, ZHONGHUI ANDA CPA Limited, resigned on January 9, 2020, due to a disagreement over audit fees, leading to the appointment of Evergreen (Hong Kong) CPA Limited as the new auditor on January 21, 2020 - The company's auditor changed from ZHONGHUI ANDA CPA Limited to Evergreen (Hong Kong) CPA Limited due to a failure to agree on audit fees[192](index=192&type=chunk) [Environmental, Social and Governance Report](index=32&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) Outlines the company's commitment and performance in environmental protection, social responsibility, and corporate governance practices [Environmental Protection](index=33&type=section&id=Environmental%20Protection) As an investment company, the primary environmental impact stems from office operations, with efforts focused on energy conservation, sustainable paper use, and IT equipment management, resulting in reduced electricity and paper consumption in 2019 Environmental Data Overview for 2019 | Indicator | 2019 | 2018 | | :--- | :--- | :--- | | Electricity Consumption (kWh) | 9,299 | 12,173 | | Greenhouse Gas Emissions (kg CO2e) | 7,439 | 9,617 | | Printing Paper Consumption (A4 sheets) | 8,783 | 14,268 | - The company implements various environmental protection measures, including encouraging electronic communication to reduce business travel, office greening, adopting energy-efficient inkjet printers, establishing energy-saving equipment procurement standards, and promoting smart printing methods[203](index=203&type=chunk)[207](index=207&type=chunk)[212](index=212&type=chunk) [Social Responsibility](index=35&type=section&id=Social%20Responsibility) The company adheres to strict labor standards, providing equal opportunities and a healthy work environment for its 27 diverse employees, emphasizing training, transparent supplier selection, and robust anti-corruption measures - As of the end of 2019, the company had **27 employees**, with a male-to-female ratio of approximately 2:1 and a diverse age distribution[230](index=230&type=chunk) - The company prioritizes employee development, providing one hour of internal training to all employees weekly, with over **50 hours of training** delivered in 2019[241](index=241&type=chunk) - The company has established internal control policies and an 'Employee Handbook' to prevent corruption and fraud, and has set up an anonymous reporting channel[249](index=249&type=chunk) [Independent Auditor's Report](index=41&type=section&id=Independent%20Auditor's%20Report) Presents the independent auditor's opinion on the financial statements and highlights key audit matters related to the fair value measurement of investments [Audit Opinion and Key Audit Matters](index=41&type=section&id=Audit%20Opinion%20and%20Key%20Audit%20Matters) Evergreen (Hong Kong) CPA Limited issued an unmodified audit opinion on the 2019 financial statements, with key audit matters focusing on the fair value measurement of equity investments at fair value through other comprehensive income and investments at fair value through profit or loss - The auditor believes the financial statements present a true and fair view of the company's financial position and performance in accordance with Hong Kong Financial Reporting Standards, and have been properly prepared in compliance with the Hong Kong Companies Ordinance[262](index=262&type=chunk) - Key audit matters include: - **Equity investments at fair value through other comprehensive income**: Significant balance of **HKD 312 million** with material impact on financial statements, and fair value measurement involves significant judgment and estimation - **Investments at fair value through profit or loss**: Significant balance of **HKD 360 million** with material impact on financial statements, and fair value measurement also involves significant judgment and estimation[268](index=268&type=chunk)[271](index=271&type=chunk) [Financial Statements](index=45&type=section&id=Financial%20Statements) Presents the company's consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows for the reporting period [Statement of Profit or Loss and Other Comprehensive Income](index=46&type=section&id=Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended December 31, 2019, the company reported revenue of approximately HKD 31.97 million and a profit for the year of HKD 23.87 million, representing a 134.7% increase from the previous year Summary of Statement of Profit or Loss for 2019 | Item (HKD Thousand) | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | 31,968 | (4,895) | | Profit Before Tax | 23,872 | 10,172 | | Profit for the Year | 23,872 | 10,172 | | Total Comprehensive Income for the Year | 15,998 | 9,500 | | Basic Earnings Per Share | 0.186 HK Cents | 0.079 HK Cents | [Statement of Financial Position](index=47&type=section&id=Statement%20of%20Financial%20Position) As of December 31, 2019, the company's total assets were HKD 712 million, with total liabilities of HKD 12.17 million, resulting in a net asset value of HKD 700 million, primarily driven by fair value investments Summary of Statement of Financial Position as of December 31, 2019 | Item (HKD Thousand) | 2019 | 2018 | | :--- | :--- | :--- | | Total Non-Current Assets | 315,470 | 297,953 | | Total Current Assets | 396,951 | 386,574 | | Total Current Liabilities | 12,166 | 270 | | **Net Asset Value** | **700,255** | **684,257** | | **Total Equity** | **700,255** | **684,257** | [Statement of Changes in Equity](index=48&type=section&id=Statement%20of%20Changes%20in%20Equity) As of the end of 2019, the company's total equity increased to HKD 700 million, primarily due to the profit for the year, partially offset by a loss from revaluation of equity investments Summary of Changes in Equity for 2019 | Item (HKD Thousand) | Amount | | :--- | :--- | | As at January 1, 2019 | 684,257 | | Total Comprehensive Income for the Year | 15,998 | | As at December 31, 2019 | 700,255 | [Statement of Cash Flows](index=49&type=section&id=Statement%20of%20Cash%20Flows) In 2019, the company experienced a net decrease in cash and cash equivalents of HKD 175 million, primarily due to net cash outflow from operating activities, with the year-end balance at HKD 12.7 million Summary of Cash Flows for 2019 | Item (HKD Thousand) | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Flows Used in Operating Activities | (170,810) | (98,435) | | Net Cash Flows (Used in)/From Investing Activities | (2,868) | 30,428 | | Cash Flows Used in Financing Activities | (915) | – | | **Net Decrease in Cash and Cash Equivalents** | **(174,593)** | **(68,007)** | | Cash and Cash Equivalents at Year-End | 12,701 | 187,294 | [Five-Year Financial Summary](index=93&type=section&id=Five-Year%20Financial%20Summary) Provides a consolidated overview of the company's financial performance and position over the past five years, highlighting trends in results and balance sheet items [Performance and Balance Sheet Trends](index=93&type=section&id=Performance%20and%20Balance%20Sheet%20Trends) Over the past five years, the company's performance has shown significant volatility, reflecting its investment business, while net assets have steadily grown from HKD 484 million in 2015 to HKD 700 million in 2019 Five-Year Performance Summary (HKD Thousand) | Year Ended December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 31,968 | (4,895) | 49,321 | (27,251) | 14,903 | | Profit/(Loss) Before Tax | 23,872 | 10,172 | 37,005 | (54,172) | (138) | Five-Year Assets and Liabilities Summary (HKD Thousand) | As at December 31 | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 712,421 | 684,527 | 674,696 | 637,427 | 484,197 | | Total Liabilities | (12,166) | (270) | (890) | (626) | (216) | | Net Asset Value | 700,255 | 684,257 | 673,806 | 636,801 | 483,981 |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | CHINA INNOVATION INVESTMENT LIMITED 中國創新投資有限公司 (於爾曼群島註冊成立之有限公司) (股份代號: 1217) 中國創新投資有限公司 中期報告2019 目錄 頁次 公司資料2 財務摘要3 管理層討論及分析4 權益披露8 企業管治及其他資料10 簡明損益及其他全面收益表13 簡明財務狀況表14 簡明權益變動表15 簡明現金流量表16 簡明財務報表附註17 1 中國創新投資有限公司 中期報告2019 2 www.1217.com.hk | --- | --- | |--------------------------------------------------|------------------- ...

China Innovation Investment Limited 中國創新投資有限公司 ANNUAL R E P ORT 年 報 2018 2018 CHINA INNOVATION INVESTMENT LIMITED 中國創新投資有限公司 Annual Report 2018 年報 (Incorporated in the Cayman Islands with limited liability) (Stock Code: 1217) 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） 目錄 公司資料2 主席致辭3 管理層討論及分析5 企業管治報告8 董事簡歷 16 董事局報告 18 環境、社會及管治報告 24 獨立核數師報告 31 損益及其他全面收益表 35 財務狀況表 36 權益變動表 37 現金流量表 38 財務報表附註 39 五年財務概要 74 公司資料 | --- | --- | |---------------------------------------------------- ...