Financial Performance - The Company reported a net loss attributable to shareholders of HK$34,070,940 for the year ended 31 December 2019, primarily due to a net loss in fair value of HK$25,920,857 on investment positions in the portfolio [27]. - The net asset value per share decreased to approximately HK$0.04 as of 31 December 2019, reflecting the slowdown in the Chinese economy and increased volatility in the Hong Kong stock market [28]. - The Company experienced a net realized loss of HK$60,326,270, with losses from listed securities amounting to HK$22,826,270 and unlisted securities losses of HK$37,500,000 [28]. - The company recorded a net loss attributable to shareholders of HKD 34,070,940 for the year, including a fair value loss of HKD 25,920,857 from its investment portfolio [29]. - The fair value losses on financial assets amounted to HKD 60,326,270, with listed securities contributing a loss of HKD 22,826,270 and non-listed securities a loss of HKD 37,500,000 [29]. - The unrealised losses across various investments reflect changes in fair value during the reporting year [72]. Investment Strategy - The Company maintains a long-term investment strategy focused on both public and private equity markets [27]. - The company plans to continue seeking investment opportunities in high-potential listed companies, with the largest investment being in Kin Pang Holdings Limited (1722.HK) [36]. - The company has not made new private equity investments in the past year but believes such investments can diversify risk and potentially yield greater long-term returns [37]. - The Company will continue to monitor investments cautiously due to recent uncertain market conditions [28]. - The Company aims to invest in enterprises that can manufacture products or deliver services with economic support from the specified regions [147]. Market Conditions - The company remains cautious about the prospects of the securities market in China and Hong Kong due to the impact of the COVID-19 outbreak [35]. - The COVID-19 outbreak is expected to negatively impact Kin Pang's financial performance due to project delays and reduced tenders [77]. Shareholder Information - The Company did not recommend the payment of any final dividend for the year, consistent with the previous year [98]. - The Company does not recommend the payment of any dividends for the Year, consistent with the previous year (31 December 2018: Nil) [153]. - The Company raised approximately HK$21 million during the year through a placing agreement for 220,000,000 shares at a net price of HK$0.095 per share [107]. Corporate Governance - The company has established an audit committee in accordance with Listing Rule 3.21, consisting of three independent non-executive directors [129]. - The audit committee's responsibilities and work summary are detailed in the corporate governance report of the annual report [130]. - The company is committed to maintaining transparency and accountability through its governance structures and practices [130]. - The Company is committed to promoting environmental and social sustainable development and complies with relevant laws and regulations [161]. Employee and Remuneration - The total remuneration cost incurred by the Company for the year was approximately HK$3,370,125, compared to HK$2,699,065 in 2018 [110]. - As of December 31, 2019, the Company had five full-time employees, down from six in 2018 [116]. Risk Management - The company will continue to implement its comprehensive risk management strategy to achieve growing returns on investments for shareholders [32]. - The Board believes that foreign exchange risks are minimal as the Company mainly uses the Hong Kong dollar or United States dollar for transactions [121]. - The Company faced various risks as outlined in the business review section of the annual report [153]. Custodian and Fees - The Company terminated the custodian agreement with Deutsche Bank AG on August 15, 2019, and appointed Bank of Communications Trustee Limited as the new custodian [197]. - The monthly fee to the new custodian is the higher of 0.04% of the net asset value or HK$12,500 [197]. - The total custodian fee paid by the Company during the year was HK$288,677 [197].
中国新经济投资(00080) - 2019 - 年度财报