Financial Performance - The net asset value as of December 31, 2018, was approximately HK$142 million, a decrease of about 22.0% from HK$182.1 million in 2017[25]. - The decline in net asset value was primarily due to a net fair value loss in the equity investment portfolio, aligning with the overall drop in stock market indices, including a 13.6% decrease in the Hang Seng Index[25]. - The fair value of listed equity investments decreased to approximately HK$44.6 million as of December 31, 2018, down from HK$66.2 million in 2017[32]. - The Group recorded investment income and gross proceeds from the disposal of financial assets at fair value through profit or loss of about HK$49.2 million, representing a decrease of about 6.1% compared to the previous year[93]. - The Group's loss from operations amounted to HK$53.7 million, partly due to net fair value losses on listed equity securities of about HK$27.8 million[95]. - The Group's revenue for 2018 was HK$3.8 million, with dividend income from financial assets at fair value through profit or loss at about HK$2.4 million[94]. Investment Strategy - The investment strategy focuses on a diversified portfolio and a prudent but proactive investment approach[4]. - The company raised equity by HK$14.3 million through a placing of new shares during the year[25]. - The company reduced investments in lower-yield debt securities in response to the rising U.S. interest rate environment, while maintaining higher-yield debt securities for better returns[26]. - The Group plans to increase investments in private equity, particularly in pre-IPO opportunities, and has established an investment company in China[109]. - The new technology and innovation stock board in Shanghai will allow companies that are not yet profitable to list, creating more pre-IPO investment opportunities in biotech and fintech[110]. - The investment in China Oriented is expected to generate high returns if its IPO application is successful in the future[40]. Company Governance - The Company complied with all provisions under the Corporate Governance Code except for specific provisions regarding the appointment terms of non-executive directors and timely distribution of board papers[148][150]. - The Board of Directors consists of five members, including one Executive Director and three Independent Non-executive Directors, with roles of Chairman and CEO separated[157][160]. - The Company has no financial, business, or family relationships among Board members as of December 31, 2018[168]. - The Company’s governance practices align with the Corporate Governance Code, ensuring compliance and transparency[176]. - The Directors confirm that they are not aware of any material uncertainties that may cast significant doubt upon the Company's ability to continue as a going concern[193]. Revenue and Profit Trends - Tencent Holdings reported a significant revenue increase to RMB312,694 million from RMB237,760 million, with a moderate profit increase to RMB78,719 million in 2018[57]. - AIA Group's net profit declined to US$3,226 million, but shareholder equity rose to about US$39,006 million, with new business value increasing by 22%[64]. - Sa Sa International's turnover increased from about HK$3.5 billion to about HK$4.1 billion, leading to a significant net profit increase[71]. - Newtree Group's revenue rose from HK$47.8 million to approximately HK$59.8 million for the six months ended September 30, 2018, with a turnaround to a profit before income tax of about HK$2.3 million[46]. - Sands China reported a net revenue increase to US$8,665 million and a net profit increase to about US$1,875 million, while shareholder's equity slightly decreased to about US$4,409 million[87]. Market Conditions - The Hang Seng China Enterprises Index and GEM Board Index fell by 13.5% and 44.5%, respectively, during the year[25]. - The trade truce between China and the U.S. in December 2018 improved investor sentiment, contributing to a significant rebound in the stock market since early 2019[108]. - HSBC is considered a leading Hang Seng Index constituent, with potential for share price increase if investor sentiment improves post trade resolution between China and the US[48]. Operational Highlights - The company had 32 employees as of December 31, 2018, compared to 27 employees as of December 31, 2017[142][145]. - The Company held its Annual General Meeting (AGM) once during the year, with all directors present[165]. - The attendance of the directors at the AGM was 100%, with each director attending the meeting[165]. - The internal audit function has been primarily provided by professional firms or individual consultants due to the Company's small operations[199]. Financial Position - As of December 31, 2018, cash and bank balances amounted to approximately HK$30.9 million, an increase from HK$22.5 million as of December 31, 2017[122]. - The net current assets as of December 31, 2018, were approximately HK$68.7 million, down from HK$81.7 million as of December 31, 2017[122]. - The gearing ratio decreased to 2% as of December 31, 2018, compared to 3% as of December 31, 2017[124]. - The Group's property and equipment amounted to approximately HK$11.6 million as of December 31, 2018, down from HK$16.3 million as of December 31, 2017[125].
中国铸晨81(00810) - 2018 - 年度财报