Financial Performance - For the year ended December 31, 2021, the dealing NAV of the product increased by 33.05%, while the benchmark index decreased by 23.30%[9]. - Total net income for the year ended December 31, 2021, was HKD 18,032,438, compared to a loss of HKD 365,410 in 2020, indicating a significant recovery[52]. - The total comprehensive income for the year was HKD 16,100,951, a notable improvement from a loss of HKD 2,953,593 in the previous year[52]. - The net gain on investments and derivative financial instruments for 2021 was HKD 18,013,542, compared to a net loss of HKD 801,843 in 2020[121]. - The fund generated net cash from operating activities of HKD 87,428,180 in 2021, a substantial increase compared to HKD 667,201 in 2020[59]. Investment Strategy - The investment objective of the Sub-Fund is to provide results that closely correspond to two times the inverse of the daily performance of the Hang Seng China Enterprises Index[6]. - The Sub-Fund has undergone fifty-eight monthly futures rolls since inception, maintaining its futures-based replication strategy[12]. - The Manager adopts a futures-based replication strategy to achieve the investment objective[66]. - The Sub-Fund's investments and derivative financial instruments were concentrated in Hong Kong listed investment funds and futures, with a fair value of HKD 8,713,784 as of December 31, 2021[147]. - The Sub-Fund's investments in futures contracts are subject to daily marking to market, which can result in substantial losses due to high leverage[190]. Asset Management - As of December 31, 2021, the Net Asset Value (NAV) per unit of the CSOP Hang Seng China Enterprises Index Daily (-2x) Inverse Product was HKD 5.7598, with 6,400,000 units outstanding, resulting in total assets under management of approximately HKD 36.9 million[8]. - The net assets attributable to unitholders decreased to HKD 36,809,331 at the end of 2021 from HKD 107,059,879 at the end of 2020, reflecting a substantial reduction in total assets[47][56]. - The number of units in issue at the end of 2021 was 6,400,000, a decrease from 24,800,000 at the end of 2020, indicating a reduction in investor participation[56]. - The Sub-Fund's total assets amounted to HKD 37,903,492, a decrease from HKD 114,199,864 in 2020[150][154]. - The Sub-Fund's maximum exposure to credit risk as of December 31, 2021, is the carrying amount of financial assets, which is HKD 9,454,955 for investments in listed investment funds[169]. Expenses and Fees - The management fee for the year was HKD 1,083,059, down from HKD 1,534,620 in 2020, reflecting cost management efforts[52]. - The fund incurred total operating expenses of HKD 1,931,487 in 2021, down from HKD 2,588,183 in 2020, showing improved operational efficiency[52]. - The management fee increased from 0.99% to 1.5% per annum of the net asset value effective from June 25, 2020[125]. - The Sub-Fund incurred transaction costs of HKD 26,505,979 in 2021, which accounted for 10.59% of the total aggregate value of transactions during the year[134]. Liquidity and Risk Management - The Sub-Fund's liquidity risk is managed by investing in securities expected to be liquidated within 7 days or less[175]. - As of December 31, 2021, the Sub-Fund had contractual cash outflows totaling HKD 1,094,161, with HKD 815,261 due within 1 month[172]. - The total interest sensitivity gap for the Sub-Fund as of December 31, 2021, was HKD 28,428,003, indicating a substantial amount of assets sensitive to interest rate changes[150]. - The Sub-Fund's exposure to interest rate risk is highlighted by a potential increase or decrease in net assets attributable to unitholders of HKD 28,428 (2020: HKD 48,227) if interest rates changed by 10 basis points[152]. Changes in Investment Holdings - The fund's investments decreased significantly from HKD 65,971,079 in 2020 to HKD 9,454,955 in 2021, indicating a major shift in investment strategy[48]. - The Sub-Fund did not invest in debt securities as of December 31, 2021, compared to HKD 51,497,964 in 2020, indicating a shift in investment strategy[146][154]. - The Sub-Fund's investments in HK treasury bills were nil as of December 31, 2021, compared to HKD 51,497,964 in 2020, reflecting a significant reduction in exposure to government bonds[154][164]. Fund Structure and Governance - The Sub-Fund's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS)[70]. - The Sub-Fund issues redeemable units classified as equity, which entitle holders to a pro-rata share of net asset value[101]. - The Manager and Trustee confirmed that the Sub-Fund was managed in accordance with the Trust Deed for the year ended December 31, 2021[14]. - The Sub-Fund's management considers the probability of default for counterparties to be close to zero, resulting in no loss allowance recognized for expected credit losses[168].
新华联资本(00758) - 2021 - 年度财报