Financial Performance - As of December 31, 2020, the net asset value decreased by HK$44 million to HK$84.9 million due to operational losses during the year[16]. - The Group's portfolio value dropped by HK$38.9 million to approximately HK$62.0 million, with listed equities valued at about HK$60.3 million, down from HK$91.2 million in 2019[17]. - For the year ended December 31, 2020, the Group's revenue was HK$1.3 million, a decrease from HK$2.4 million in 2019, with dividend income dropping to about HK$0.9 million from HK$2.2 million[34][38]. - The loss from operations for the year was about HK$43.9 million, a slight improvement from HK$49.9 million in 2019, primarily due to a net fair value loss on the equity portfolio of about HK$20.2 million[35][39]. - The gross proceeds from the disposal of investments and investment income amounted to about HK$168.9 million, representing a year-on-year increase of approximately 450.1%[29][33]. Market Conditions - The Hong Kong stock market underperformed, with the Hang Seng Index and Hang Seng China Enterprises Index declining by 3.4% and 3.8%, respectively[23]. - The Shanghai Composite Index gained 13.9% and the Shenzhen Composite Index climbed by 35.2%, indicating a strong recovery in mainland China[22]. - The political tensions between the U.S. and China, including the passing of the Hong Kong national security law, impacted market performance negatively[24]. - The Hang Seng Index (HSI) and the Hang Seng China Enterprises Index (HSCEI) dropped by 3.4% and 3.8%, respectively, during the year, negatively impacting certain investees' businesses[35][39]. - The Hang Seng Tech Index surged 78.7% during the year, outperforming both the HSI and HSCEI[30][33]. Investment Strategy - The company’s investment strategy includes investing in listed shares, bonds, and private equity, aiming to benefit employees, shareholders, and the community[3]. - The company’s investment portfolio primarily consists of financial assets at fair value through profit or loss, which accounted for the majority of its investment value[17]. - The company plans to continue using both buy-and-hold and short-term trading strategies to enhance investment returns amid high market volatility[48]. - The company is exploring various investment opportunities in the new economy and biotech sectors, focusing on pre-IPO investments and private equity[52]. - The company anticipates that trading of Chinese new economy stocks will continue to increase due to their inclusion in major indices and active Stock Connect trading[47]. Dividend Policy - The company does not recommend the payment of a final dividend for the year ended December 31, 2020, consistent with the previous year[15]. - The Company has adopted a Dividend Policy aimed at providing stable returns to shareholders while maintaining a healthy financial position[168]. - The Board considers various factors, including operating results and liquidity, when proposing dividends[169]. - The dividend payout ratio may vary annually, with no assurance of specific amounts being paid during any given period[173]. Corporate Governance - The company appointed Success Advance Investments Limited as its new investment manager effective January 25, 2021[141]. - The board consists of five members, including one executive director and three independent non-executive directors[145]. - The Company emphasizes board diversity, considering gender, age, and professional experience in its composition[165]. - The Nomination Committee will review the board diversity policy annually to ensure its effectiveness[166]. - The Company has at least three independent non-executive directors, meeting the requirement of representing at least one-third of the Board[152]. Financial Position - As of December 31, 2020, cash and bank balances amounted to approximately HK$18.4 million, down from HK$24.8 million in 2019[72]. - The net current assets as of December 31, 2020, were approximately HK$38.9 million, compared to HK$52.3 million in 2019[72]. - The Group maintained a low gearing ratio of 2.5% as of December 31, 2020, slightly up from 2.1% in 2019[73]. - The total amount in the share premium account as of December 31, 2020, was HK$75,416,193.69, which will be fully reduced[62]. - The company had no material capital commitments as of December 31, 2020[72]. Audit and Compliance - For the year ended December 31, 2020, the audit fee paid to Deloitte Touche Tohmatsu was approximately HK$1,500,000 for audit services and HK$20,000 for non-audit services[192]. - The Audit Committee held three meetings during the year, with full attendance from its members[181]. - The external auditor, Deloitte, has provided a statement regarding their responsibility for the company's financial statements, confirming no significant uncertainties affecting the company's ability to continue as a going concern[200]. - The Board regularly reviews the internal control policy to safeguard the Group's assets and has identified key risks and uncertainties[197]. - The Directors confirm no material uncertainties that may cast doubt on the Company's ability to continue as a going concern[196].
中国铸晨81(00810) - 2020 - 年度财报