中国新经济投资(00080) - 2024 - 中期财报

Corporate Information This section provides details on the company's core governance structure and key external partners Corporate Information This chapter details the company's core governance structure and key external partners, including board members, committees, company secretary, investment manager, and auditor - The company's Board of Directors comprises executive, non-executive (including co-chairmen), and independent non-executive directors, with three core committees: Audit, Remuneration, and Nomination[3] - Key external partners include Evergrande Securities (Hong Kong) Limited as Investment Manager, Elite Partners CPA Limited as Auditor, and Bank of Communications Trustee Limited as Custodian[4][5] Management Discussion and Analysis This section analyzes the company's financial performance, business operations, investment strategies, and liquidity Financial Highlights The company reported a net loss attributable to shareholders of HKD 12.73 million, primarily due to fair value losses on its investment portfolio 2024 H1 Key Financial Data | Indicator | Amount (HKD) | | :--- | :--- | | Net loss attributable to shareholders | 12,728,425 | | Net change in fair value loss on investment portfolio | 6,960,659 | | - Of which: Net realized loss | 716,493 | | - Of which: Net unrealized loss | 6,244,166 | | Unaudited net asset value per share | Approx. 0.06 | - The company's investment portfolio includes one Hong Kong-listed company, three private equity securities, one limited partnership fund, and one open-ended fund, with a significant investment in the financial printing sector focused on Hong Kong IPO markets[10] Business Review and Prospect The investment market faced challenges in H1 2024, but the company maintains its strategy of focusing on Greater China and diversifying through private equity and fund investments - The macroeconomic environment faces three major challenges: a slow recovery in China's real estate market, persistently high US interest rates, and uncertainties in US-China relations due to the upcoming US election[14][15] - Despite challenges, China's GDP grew by 5.0% year-on-year in H1 2024, indicating steady economic growth[16] - The company's strategic focus is on investing in high-potential listed companies in the short term, and achieving risk diversification and potentially higher returns through private equity and fund investments in the long term[20] Investment Review As of June 30, 2024, the company's portfolio included one Hong Kong-listed equity, three private equities, and two funds, with iPro Financial Press Limited being the largest investment by asset percentage Overview of Major Investment Portfolio (As of June 30, 2024) | Investment Name | Type | Market Value (HKD '000) | % of Total Assets | | :--- | :--- | :--- | :--- | | iPro Financial Press Limited | Private Equity (Hong Kong) | 17,602 | 21.62 | | Goldstone 1 LPF | Fund (Hong Kong) | 11,032 | 13.55 | | Gransing Financial Group Limited | Private Equity (BVI) | 9,724 | 11.94 | | SWK Dynamic OFC | Fund (Hong Kong) | 8,657 | 10.63 | | Gransing Finance Limited | Private Equity (Hong Kong) | 8,103 | 9.95 | - During the reporting period, the two investments with the highest realized gains were China New Consumption Group and Savour of Asia Holdings; the three investments with the largest realized losses were Heng Wei Group Holdings Limited, Longcheer Financial Group, and SWK Dynamic OFC[37][38] - Fair value assessment methods vary for each investment: listed equities are based on market quotes, private equities on independent valuations, and funds on net asset value calculations[34][35][36] Liquidity, Financial Resources and Capital Management The company maintains sufficient cash for investment opportunities, with a gearing ratio of 0.74% and no interim dividend proposed Liquidity and Debt Status (As of June 30, 2024) | Indicator | Value | | :--- | :--- | | Gearing ratio | 0.74% (2023 year-end: 0) | | Margin payable to brokers | 570,118 HKD | | Annual margin interest rate | 9.625% | - The Board does not recommend the payment of any interim dividend for the period ended June 30, 2024[42][44] - During the reporting period, the company did not undertake any equity fundraising activities, significant acquisitions or disposals, nor did it have any capital expenditure commitments[58][62] - As of the period end, the company had nine full-time employees, with total staff costs of approximately HKD 1.08 million, a significant year-on-year decrease[63] Other Information This section covers substantial shareholders' interests and the company's corporate governance practices Substantial Shareholders' Interests As of June 30, 2024, no directors or chief executives held interests in the company's shares, with CAS International Investment Management Company Limited and its associates being the largest shareholder group - As of the end of the reporting period, the company's directors and chief executives did not hold any interests or short positions in the company's shares, underlying shares, or debentures[65] Major Shareholder Holdings (As of June 30, 2024) | Shareholder Name | Shareholding (%) | | :--- | :--- | | CAS International Investment and its associates | 23.87 | | Luo Yan | 14.46 | | Choi Koon Shum and his associates | 8.93 | | Wang Dingben | 5.18 | Corporate Governance Practices The company complied with the Listing Rules' Corporate Governance Code during the reporting period, maintaining adequate public float and an independent audit committee - The company has applied and complied with the principles and provisions of the Corporate Governance Code[81] - The Audit Committee, comprising three independent non-executive directors, with the chairman possessing professional accounting qualifications, has reviewed the unaudited interim financial statements for this period[81][83] - Based on public information and the directors' knowledge, the company consistently maintained the required public float during the six months ended June 30, 2024[84] Interim Condensed Financial Statements This section presents the unaudited interim condensed financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows, along with explanatory notes Financial Statements Overview This section presents the unaudited interim condensed financial statements for the six months ended June 30, 2024, including key statements and detailed notes on accounting policies and fair value measurements Interim Condensed Statement of Profit or Loss and Other Comprehensive Income The company reported a pre-tax loss of HKD 12.73 million in H1 2024, a reversal from last year's profit, primarily due to fair value losses on financial assets Profit or Loss Statement Key Metrics Comparison (For the six months ended June 30) | Indicator (HKD) | 2024 H1 (Unaudited) | 2023 H1 (Unaudited) | | :--- | :--- | :--- | | Revenue | 734,882 | 1,540 | | Net change in fair value of financial assets | (6,960,659) | 18,162,199 | | Operating (loss)/profit | (12,653,636) | 8,983,128 | | (Loss)/profit before tax | (12,728,425) | 8,918,936 | | Basic (loss)/earnings per share | (0.01) | 0.01 | Interim Condensed Statement of Financial Position As of June 30, 2024, total assets decreased to HKD 81.99 million and net assets to HKD 77.11 million, mainly due to a reduction in financial assets measured at fair value Financial Position Statement Key Metrics Comparison | Indicator (HKD) | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | Total non-current assets | 727,388 | 1,619,547 | | Total current assets | 81,259,569 | 93,623,662 | | - Of which: Financial assets | 55,689,556 | 66,340,464 | | - Of which: Cash and cash equivalents | 15,881,075 | 17,309,428 | | Total current liabilities | 4,877,429 | 5,207,358 | | Net assets | 77,109,528 | 89,837,953 | | Net asset value per share | 0.06 | 0.07 | Interim Condensed Statement of Cash Flows In H1 2024, the company experienced a net cash outflow from operating activities of HKD 0.67 million and from financing activities of HKD 0.76 million, resulting in a net decrease in cash and cash equivalents of HKD 1.43 million Cash Flow Statement Key Metrics Comparison (For the six months ended June 30) | Indicator (HKD) | 2024 H1 (Unaudited) | 2023 H1 (Unaudited) | | :--- | :--- | :--- | | Net cash flow from operating activities | (670,249) | 164,437 | | Net cash flow used in financing activities | (758,104) | (511,680) | | Net decrease in cash and cash equivalents | (1,428,353) | (347,243) | | Cash and cash equivalents at period end | 15,881,075 | 27,483,089 | Notes to Interim Condensed Financial Statements The notes provide detailed explanations, including operating segments by investment type, revenue sources, and fair value hierarchy of financial assets - The company's operating segments are listed and unlisted securities, with the unlisted securities segment being the primary contributor to the overall investment loss this period[111] - Revenue for the period totaled HKD 0.735 million, with HKD 0.704 million derived from a profit guarantee income from a private equity investment[125] Financial Assets Fair Value Hierarchy (As of June 30, 2024) | Level | Description | Amount (HKD) | | :--- | :--- | :--- | | Level 1 | Quoted prices in active markets | 572,000 | | Level 2 | Observable inputs | 19,688,556 | | Level 3 | Unobservable inputs | 35,429,000 |