Financial Performance - The consolidated net asset value of the group as of December 31, 2020, was $775.43 million, an increase of 19.47% from $649.05 million in 2019[8]. - The audited post-tax consolidated profit for 2020 was $89.79 million, a decrease of 11.81% compared to $101.81 million in the previous year[8]. - The net profit attributable to shareholders for the year ended December 31, 2020, was $89.79 million, a decrease of $12.02 million or 11.81% compared to the previous year[15]. - The net income from financial assets for the year was $126.20 million, a decrease of 4.29% from $131.85 million in the previous year[15]. - The company’s distributable reserves as of December 31, 2020, were $24,786,454, slightly down from $25,945,745 in 2019[131]. - The net profit for the year ended December 31, 2020, was $89,788 thousand, compared to a loss of $87,021 thousand in 2019, indicating a significant recovery[120]. Dividends - The board proposed a final dividend of $0.07 per share, unchanged from the previous year, and a special dividend of $0.01 per share, resulting in a total annual dividend of $0.08 per share, an increase of 14.29% from $0.07 per share in the prior year[8]. - The company proposed a final dividend of $0.07 per share and a special dividend of $0.01 per share, totaling $12,186,641, up from $10,663,311 in 2019[129]. - The company has maintained a stable dividend policy while considering investments for business growth[131]. Investment Activities - The total value of the group's investment projects at the end of 2020 was $909.27 million, representing 93.58% of the total assets, an increase of $195.30 million from $713.97 million at the end of 2019[10]. - The group completed investments in five new direct investment projects in 2020, with a total investment and committed investment amounting to $55.95 million[11]. - The group exited two direct investment projects in 2020, realizing a net amount of $5.78 million from the sales[11]. - The fund made a direct investment of RMB 220 million (approximately $31.12 million) in China UnionPay, acquiring a 0.17% equity stake[16]. - The fund invested RMB 60 million (approximately $8.60 million) for a 3% equity stake in iFlytek Medical[16]. - The total investment amount by Jiangmen Venture Capital Fund reached RMB 233 million across 19 projects, with RMB 14 million invested in 2020 alone[73]. Economic Outlook - The World Bank forecasts a global economic growth of 4% in 2021, with potential risks including pandemic resurgence and delayed vaccine rollout[12]. - The Chinese economy is expected to recover steadily, supported by policy dividends from the "14th Five-Year Plan" and improvements in corporate profitability[12]. - The group anticipates challenges from long-term economic growth slowdown and capital market volatility affecting asset prices[12]. - The company anticipates significant economic growth in Q1 2021 due to a low base effect, contingent on the absence of a resurgence of COVID-19[91]. Risk Management - The company faced various risks and uncertainties, which are detailed in the annual report, emphasizing the importance of risk management[128]. - The company has established a risk management and internal control system, which is continuously monitored and reviewed for effectiveness[200]. - The company faces economic risks due to its investments in Chinese enterprises, which are significantly influenced by the macroeconomic environment[96]. - Legal uncertainties exist due to the evolving nature of China's commercial laws, which may limit legal protections for investors[101]. Governance and Management - The board of directors has been authorized to determine the remuneration of the company's directors, reflecting a governance structure in place[133]. - The board consists of three executive directors, three non-executive directors, and four independent non-executive directors[171]. - The company has complied with all provisions of the Corporate Governance Code, except for the establishment of a remuneration committee[169]. - The board's governance practices include independent professional advice for all directors, ensuring compliance with rules and regulations[174]. - The company has established three committees under the board: the audit committee, nomination committee, and investment committee, to assist in monitoring management[174]. Shareholder Information - Major shareholders include China Merchants Group Limited, which holds 42,022,041 shares, representing 27.59% of the total issued shares[159]. - Lazard Asset Management LLC is another significant shareholder, owning 28,990,206 shares, accounting for 19.03% of the total issued shares[159]. - The company has maintained a public float of no less than 25% as required by listing rules[162]. Investment Strategy - The fund's investment strategy involves careful evaluation and selection of investment projects, considering factors such as investment scale and phased investment strategies[98]. - The fund generally acts as a strategic investor in portfolio companies, not exceeding 30% voting rights, which limits its control over management decisions[99]. - The fund has implemented a secondary participation investment plan to align the interests of management and stakeholders in new investment projects[105]. Financial Position - The total assets have shown a consistent upward trend, reaching $775,431 thousand in 2020 from $561,315 thousand in 2016[124]. - The fund's cash and cash equivalents decreased by 5.89% to $60.36 million as of December 31, 2020[22]. - The fund had no bank loans as of December 31, 2020, maintaining a debt-free status[23].
招商局中国基金(00133) - 2020 - 年度财报