招商局中国基金(00133) - 2024 - 中期财报

Financial Report Consolidated Financial Statements The Group's H1 2024 profit attributable to shareholders slightly decreased to $59.50 million, while net asset value per share grew to $3.954, and cash and cash equivalents significantly increased to $42.32 million Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, the Group reported a profit for the period of $59.50 million, a 6.6% decrease from $63.68 million in the prior period, primarily due to a reduction in net gains from financial assets at fair value through profit or loss Key Profit or Loss Data for H1 2024 | Metric | For the 6 Months Ended June 30, 2024 (USD) | For the 6 Months Ended June 30, 2023 (USD) | | :--- | :--- | :--- | | Net gains from financial assets at fair value through profit or loss | 75,152,945 | 80,411,139 | | Profit before tax | 72,310,340 | 76,986,060 | | Profit for the period | 59,503,492 | 63,682,960 | | Basic earnings per share | 0.391 | 0.418 | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's net assets increased by 8.0% to $602 million from $558 million at year-end 2023, with net asset value per share rising to $3.954, driven primarily by the fair value increase of non-current financial assets Key Balance Sheet Data as of June 30, 2024 | Metric | June 30, 2024 (USD) | December 31, 2023 (USD) | | :--- | :--- | :--- | | Non-current financial assets | 713,995,664 | 599,257,512 | | Net assets | 602,363,456 | 557,939,788 | | Net asset value per share | 3.954 | 3.663 | Condensed Consolidated Statement of Changes in Equity The Group's shareholders' equity increased from $558 million at the beginning of the period to $602 million at period-end, primarily due to the $59.50 million profit for the period, partially offset by exchange differences of $2.89 million and 2023 dividend payments of $12.19 million - Shareholders' equity changes were primarily influenced by profit for the period, exchange differences, and dividend distributions, with total comprehensive income for the period at $56.61 million[8] Condensed Consolidated Statement of Cash Flows Net cash and cash equivalents increased by $33.79 million during the period, reaching $42.32 million at period-end, significantly higher than the $8.63 million at the beginning of the year, primarily due to $38.73 million from the disposal of financial assets at fair value through profit or loss H1 2024 Cash Flow Overview | Metric | For the 6 Months Ended June 30, 2024 (USD) | For the 6 Months Ended June 30, 2023 (USD) | | :--- | :--- | :--- | | Net cash generated from operating activities | 33,790,221 | (5,997,767) | | Proceeds from disposal of financial assets | 38,734,044 | 828,954 | | Cash and cash equivalents at end of period | 42,316,068 | 19,211,903 | Notes to the Financial Report The notes clarify that current accounting policies are consistent with the prior year, new accounting standards had no significant impact, and segment information identifies financial services, culture, media, and consumer, and information technology as key reporting segments, with financial services contributing most of the profit, alongside details on dividend distribution and related party transactions with the investment manager - New accounting standard amendments adopted during the period had no significant impact on the Group's financial position or performance[15] H1 2024 Segment Profit and Assets | Segment | Segment Profit (Million USD) | Segment Assets (Million USD) | | :--- | :--- | :--- | | Financial Services | 60.4 | 438.3 | | Culture, Media & Consumer | 8.3 | 47.4 | | Information Technology | 12.4 | 220.6 | | Others | (3.1) | 8.9 | - The Board resolved to declare an interim dividend of 4 cents per share for 2024, and the 2023 final and special dividends totaling 8 cents per share (totaling $12.19 million) were paid in July 2024[45] - The Group paid $5.09 million in management fees to the investment manager and has financial liabilities under sub-participation agreements with related parties, including company directors[54] Review Report Auditor's Review Report Independent auditor KPMG has reviewed this interim financial report in accordance with Hong Kong Standards on Review Engagements, concluding that they have not noted anything that causes them to believe the interim financial report is not prepared in all material respects in accordance with HKAS 34 "Interim Financial Reporting" - KPMG issued an unmodified review conclusion, stating that the interim financial report complies with relevant accounting standards in all material respects[59] Investment Manager's Discussion and Analysis Overall Performance and Financial Position In H1 2024, profit attributable to shareholders decreased by 6.56% to $59.50 million due to slower financial asset appreciation, while net asset value per share increased to $3.954, with cash and equivalents significantly rising to $42.32 million primarily from partial disposal of China UnionPay equity H1 2024 Performance Overview | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Profit Attributable to Shareholders | $59.50 million | $63.68 million (prior period) | | Net Asset Value | $602 million | $558 million | | Net Asset Value Per Share | $3.954 | $3.663 | - Cash and cash equivalents significantly increased by 390.38% to $42.32 million from $8.63 million at the end of last year, primarily due to the disposal of a portion of China UnionPay Co., Ltd. equity[63] - In H1 2024, the Fund did not enter into any new investment projects nor fully exit any existing ones[61] Investment Portfolio Overview As of June 30, 2024, the Fund's total investment value was $715 million, with the portfolio primarily concentrated in financial services (57.85%) and information technology (29.10%), and key holdings including China Merchants Bank, China Chengxin Trust, iFLYTEK, iFLYTEK Healthcare, and Insta360 Investment Portfolio Sector Distribution (June 30, 2024) | Sector | Investment Value (Million USD) | Percentage of Total Assets (%) | | :--- | :--- | :--- | | Financial Services | 438.3 | 57.85% | | Information Technology | 220.6 | 29.10% | | Culture, Media & Consumer | 47.4 | 6.26% | | Others | 8.9 | 1.18% | - The Fund's top ten investment projects include China Merchants Bank, China Chengxin Trust, iFLYTEK, iFLYTEK Healthcare, Insta360, NBA China, China UnionPay, Pony.ai, Anhui Kexun Venture Capital Fund, and China Construction Investment Leasing[68][69][70] Review of Key Investment Projects This section reviews the progress of key investment projects, including China Merchants Bank's improved ranking and China Chengxin Trust's business transformation in financial services, iFLYTEK's losses due to AI model investments, Insta360's 8K camera launch, Pony.ai's US listing filing, and Moonshot AI's new financing and user growth in information technology, alongside iFLYTEK Healthcare's Hong Kong IPO application and Immuno Cure BioTech's FDA fast track designation in healthcare - China Merchants Bank: In July 2024, it entered the top 10 for the first time in The Banker's "Top 1000 World Banks" ranking[71] - iFLYTEK: Swung from profit to loss in H1 2024, recording a net loss of RMB 401 million, primarily due to new investments exceeding RMB 650 million in general artificial intelligence cognitive large models[83] - Pony.ai: The China Securities Regulatory Commission has issued its overseas issuance and listing filing notice, with plans to list on Nasdaq or the New York Stock Exchange in the United States[85] - iFLYTEK Healthcare: Controlling shareholder iFLYTEK plans to spin it off for listing in Hong Kong, having submitted an IPO application to the HKEX on January 31, 2024[89] - Moonshot AI: Completed multiple rounds of new financing, diluting the Fund's shareholding to 0.67%, with its Kimi AI Assistant APP reaching 4.59 million monthly active users[95][96] Business Outlook For the second half, the investment manager anticipates China's economy to achieve its growth target of around 5.0%, providing a stable operating environment for investments, and the Fund will continue its strategy focusing on digital finance, AI-driven emerging technologies, the broader cultural industry (including cultural tourism), and the healthcare sector, while seeking asset replacement opportunities to create shareholder value - China's economic growth rate is expected to achieve its target of around 5.0% in 2024, leading to continued recovery in the operating performance of the Fund's investment projects[102] - The Fund's future investment focus will be on the financial industry, primarily digital finance; emerging technology industries, primarily artificial intelligence; the broader cultural industry, primarily cultural tourism; and the healthcare industry, primarily medical health[102] Sub-Participation Investment Scheme To align management and fund interests, the Fund implemented a sub-participation investment scheme allowing directors and investment manager personnel to proportionally participate in new investment projects, with the report detailing its operation, participation limits, and specific contributions by participants, including several directors, as of period-end - This scheme aims to align the interests of management and relevant personnel with those of the Fund when undertaking new investment projects, with participants sharing investment returns and bearing losses proportionally[104] Participation Amounts of Certain Directors in Selected Projects | Project Name | Mr. Wang Xiaoding (USD) | Mr. Xie Rujie (USD) | | :--- | :--- | :--- | | Pony.ai | 7,650 | 2,550 | | Insta360 | 3,830 | 1,280 | | iFLYTEK Healthcare | 20,540 | 1,280 | | Flexiv | 20,640 | 1,290 | | Moonshot AI | 1,280 | Not applicable | Other Information Dividends The Board resolved to declare an interim dividend of 4 cents per share (or HKD 0.312) for the six months ended June 30, 2024, payable on November 8, 2024, in addition to the 2023 final and special dividends (totaling 8 cents per share) paid on July 26, 2024 Dividend Information | Dividend Type | Amount Per Share (Cents) | Payment Date | | :--- | :--- | :--- | | 2024 Interim Dividend | 4 | November 8, 2024 | | 2023 Final Dividend | 7 | July 26, 2024 | | 2023 Special Dividend | 1 | July 26, 2024 | Shareholders and Shareholding Structure As of June 30, 2024, China Merchants Group Limited, through its controlled entities, held 27.59% of the Company's shares, making it the largest shareholder, with other major shareholders including Lazard Asset Management LLC (15.04%) and entities related to Mr. Chen Jian and Argyle Street Management (totaling 9.21%), and only Mr. Wang Xiaoding among the directors held a personal shareholding of 0.14% Major Shareholder Interests (June 30, 2024) | Shareholder Name | Shareholding Percentage | | :--- | :--- | | China Merchants Group Limited (and its associates) | 27.59% | | Lazard Asset Management LLC | 15.04% | | Chen Jian (and his associates) | 9.21% | - Director Mr. Wang Xiaoding beneficially owns 212,000 ordinary shares, representing 0.14% of the total issued shares[117] Corporate Governance During the reporting period, the Company complied with all Corporate Governance Code provisions in the Listing Rules, with the sole exception of not establishing a remuneration committee, which was exempted by the Hong Kong Stock Exchange, and this interim report has been reviewed by the Company's Audit Committee and KPMG - The Company has complied with all code provisions of the Corporate Governance Code, except for not establishing a remuneration committee due to an exemption granted by the Stock Exchange[123] - All Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period[125]