Financial Performance - The group's net asset value decreased to HKD 815,717,000, down from HKD 1,084,706,000 in the previous year[25]. - The group reported a loss attributable to owners of HKD 218,500,000, compared to a loss of HKD 327,563,000 in the previous year[35]. - Dividend income from investments decreased by 88.12% to HKD 3,354,000 compared to HKD 28,230,000 last year[36]. - Total loss from listed securities business amounted to HKD 137,194,000, an increase from last year's loss of HKD 114,742,000[37]. - Non-listed investment portfolio recorded a total loss of HKD 101,644,000, significantly reduced from HKD 295,832,000 last year[41]. - The company's total equity as of June 30, 2020, is HKD 815,717,000, down from HKD 1,084,706,000 in 2019[116]. - The company's distributable reserves as of June 30, 2020, amounted to HKD 702,808,000, a decrease from HKD 967,094,000 in 2019[150]. - The group had a total employee cost of HKD 10,922,000 for the year, a decrease of 19% from HKD 13,496,000 in the previous year[118]. Investment Strategy - The company continues to focus on the bioethanol industry in China, aiming to maximize shareholder value[31]. - The company signed cooperation agreements to establish two joint ventures in the bioethanol sector with local government and industry partners[31]. - The company aims to prudently assess and mitigate potential risks while striving to deliver greater returns to shareholders[31]. - Focus will continue on investments in the bioenergy sector to maximize shareholder value[44]. - The main business of the company and its subsidiaries remains investment holding and investment in listed and unlisted companies in Hong Kong and other regions of China, with no significant changes in business nature during the year[138]. - The company has not made any significant changes to its investment strategy or market expansion plans during the year[138]. - The company’s business is primarily focused on investments in listed and unlisted investments and other related financial assets, which are subject to global economic fluctuations[171]. Economic Context - The Chinese economy grew by 6.1% in 2019, aligning with the growth target of 6% to 6.5%[28]. - The total import and export volume in China increased by 3.4% year-on-year[28]. Governance and Compliance - The board of directors presented the audited financial statements for the year[137]. - The board of directors includes experienced professionals with extensive backgrounds in finance and investment, enhancing the company's governance[121][122][123][127][128]. - The company complies with applicable laws and regulations, hiring legal and compliance advisors as necessary[143]. - The company has received annual independence confirmations from all independent non-executive directors, affirming their independence[169]. - The company has adopted a board diversity policy that considers factors such as gender, age, cultural background, and professional experience to enhance board efficiency[199]. - The board composition is regulated by company bylaws and must include at least three independent non-executive directors, with one possessing appropriate professional qualifications or financial management expertise[198]. Shareholder Information - The total number of issued shares remains approximately 10,971,634,000, unchanged from 2019[116]. - The board does not recommend the distribution of a final dividend for the year, maintaining a policy that dividends will be declared based on the group's after-tax profits and operational needs[114]. - Major shareholders owning 5% or more of the company's shares include Zhang Zuhao with 1,000,000,000 shares (9.11%), Century Gold Investment Limited with 1,000,000,000 shares (9.11%), and Li Lihong with 979,830,000 shares (8.93%)[163]. Operational Metrics - As of June 30, 2020, the group's cash and cash equivalents amounted to HKD 64,911,000, an increase from HKD 36,124,000 in 2019[112]. - The current ratio of the group as of June 30, 2020, is approximately 2.64 times, down from 26.47 times in 2019[112]. - The debt-to-asset ratio of the group as of June 30, 2020, is approximately 9.60%, compared to 6.99% in 2019[112]. - The group has no bank borrowings as of June 30, 2020, consistent with the previous year[113]. Employee Relations - The company has established frameworks and formal communication channels to maintain good relationships with employees and stakeholders[142]. - The group maintained 15 employees as of June 30, 2020, compared to 14 employees in 2019[118]. Risk Management - The group faced minimal foreign exchange risk as transactions in Renminbi were not significant during the year[117]. - The company is committed to promoting environmental and social sustainability, complying with all relevant laws and regulations in Hong Kong[172]. Miscellaneous - The company has established appropriate insurance coverage for potential legal claims against directors[170]. - The company has adopted a share option scheme to incentivize participants contributing to the group's development[176]. - The company has no significant transactions or contracts in which directors have a substantial interest during the year[166].
中国金融国际(00721) - 2020 - 年度财报