Financial Performance - As of December 31, 2019, the net asset value was approximately HK$128.9 million, a decrease of about 9.2% from HK$142.0 million in 2018, primarily due to an operational loss of about HK$49.9 million[25]. - The Group's investment portfolio value was about HK$100.9 million as of December 31, 2019, down from approximately HK$105.9 million in 2018[26]. - The gross proceeds from the disposal of investments and investment income decreased by approximately 37.6% to about HK$30.7 million in 2019, down from about HK$49.2 million in 2018[40]. - For the year ended December 31, 2019, the group's revenue was HK$2.4 million, a decrease from HK$3.8 million in 2018, with dividend income of about HK$2.2 million and interest income dropping to HK$0.2 million[41]. - The loss from operations for the year was approximately HK$49.9 million, slightly improved from HK$53.7 million in 2018, primarily due to a net fair value loss on the equity portfolio of about HK$24 million[42]. - Miji International's revenue for the year ended December 31, 2019, was RMB 246.3 million, a decrease of about 12.6% from RMB 281.7 million in 2018[114]. - Miji International's net profit for the year ended December 31, 2019, dropped to RMB 19.9 million, a decrease of about 16% from RMB 23.7 million in 2018[114]. - HSBC's profit for the year ended December 31, 2019, dropped to US$8.7 billion, representing a decrease of about 42% from US$15.1 billion in 2018[117]. - Tencent's revenue increased by about 20.7% from RMB 312.7 billion in 2018 to RMB 377.3 billion in 2019, driven by commercial payment services and online games[123]. - Profit attributable to Tencent's equity holders rose by about 18.6% to RMB 93.3 billion for the year ended December 31, 2019[123]. Investment Activities - Investments in listed equities increased to about HK$91.2 million in 2019 from HK$72.9 million in 2018[26]. - The Company invested in two callable equity-linked notes with a total nominal amount of about HK$8 million during the year[31]. - The company's investment in listed securities amounted to approximately HK$91.2 million as of December 31, 2019, up from HK$72.9 million in 2018, while non-listed stock-linked notes were about HK$8 million, compared to zero in 2018[32]. - The company has adopted a typical asset-only approach for strategic asset allocation, considering investment objectives, risk tolerance, and liquidity needs[50]. - Investments in private equity, including pre-IPO investments, are considered to enhance expected returns but will be approached cautiously due to higher liquidity risks[55]. Shareholder Information - The net asset value per share decreased to HK$0.14 in 2019 from HK$0.22 in 2018[25]. - As of December 31, 2019, the total number of issued shares increased to 942,821,250 from 655,121,250 in 2018, with share placements raising funds through the issuance of 130,800,000 shares at HK$0.155 each in May 2019 and 156,900,000 shares at HK$0.105 each in December 2019[88]. - No share options were exercised or cancelled during the year, with 7,300,000 options lapsed and 7,800,000 granted, totaling 15,600,000 outstanding options as of December 31, 2019[83]. Market Conditions - The Hang Seng Index and Hang Seng China Enterprises Index rose only 9.1% and 10.3% respectively in 2019, underperforming compared to other global markets[36]. - The Shanghai Composite Index and Shenzhen Composite Index increased by 22.3% and 35.9% respectively, reflecting a recovery in the Mainland market due to the trade deal with the US[39]. - The recent outbreak of COVID-19 has adversely affected the global business environment and investor sentiment, leading to a major correction in the US stock market[59]. - Concerns about the potential slowdown in the global economy are expected to increase risks and uncertainties in the Hong Kong market[60]. Operational Changes - The company plans to adjust its investment objectives and policies to include the use of derivatives for hedging purposes due to market volatility[61]. - The company will hold a higher percentage of its assets in cash or more liquid securities to manage liquidity risk[61]. - Administrative expenses decreased to about HK$26.5 million from HK$30 million, attributed to a reduction in depreciation costs[47]. - Recovery actions for outstanding convertible note receivables have been ongoing since 2014, with no recovery of company assets reported from the proceedings[49]. Asset Management - As of December 31, 2019, cash and bank balances amounted to approximately HK$24.8 million, down from HK$30.9 million in 2018[75]. - Net current assets as of December 31, 2019, were approximately HK$52.3 million, a decrease from HK$68.7 million in 2018[75]. - The gearing ratio as of December 31, 2019, was 2.1%, slightly down from 2.2% in 2018, indicating a steady decline[77]. - The company has no material capital commitments as of December 31, 2019[76]. Company Developments - Lamtex announced plans to sell its loan financing business due to the tightening regulatory environment and competition, with proceeds intended for investments in cultural tourism and healthcare in China, although the sale was terminated in January 2020[135]. - Lamtex plans to further develop its core business in electronic products while exploring new ventures in cultural tourism, elderly care services, fintech, and supply chain sectors[137]. - In December 2019, Newtree Group's shareholders approved the acquisition of the remaining 80% of Alpha Youth Limited for approximately RMB390 million, which is engaged in concrete production and sales in China[147]. - Over the next two years, Sands China plans to invest $15 billion to expand its hotel room, retail, and entertainment offerings on Cotai[155].
中国铸晨81(00810) - 2019 - 年度财报