Financial Performance - The Company reported a net gain attributable to shareholders of HK$8,918,936 during the Period, consisting of a net change in fair value gain of HK$18,162,199 on investment positions in the portfolio[18]. - Revenue for the six months ended June 30, 2023, was HK$1,540,000, a slight decrease of 0.1% compared to HK$1,542,376 for the same period in 2022[139]. - Operating profit for the period was HK$8,983,128, a significant improvement from an operating loss of HK$10,713,132 in the prior year[139]. - Profit before tax was HK$8,918,936, compared to a loss before tax of HK$10,735,153 for the same period last year[139]. - The company reported a profit of HK$8,918,936 for the six months ended June 30, 2023, compared to a loss of HK$10,735,153 for the same period in 2022, indicating a significant turnaround[146]. Investment Portfolio - As of 30 June 2023, the Company held three investments in Hong Kong-listed companies, five private equity securities investments, one limited partnership fund, and one open-ended fund[18]. - The company has newly invested in Kingland Group Holdings Limited, which provides concrete demolition services in Hong Kong and Macau, and will continue to seek further investment opportunities[30][33]. - During the period, the company invested in two funds and five private equities, aiming to diversify investment risks and potentially achieve greater long-term returns[31]. - The overall investment strategy emphasizes both listed and unlisted securities to maximize returns for shareholders[30][31]. - The company’s investments are primarily focused on private and public enterprises supported by the economies of Mainland China, Hong Kong, Macau, and Taiwan[152]. Market Conditions - The investment performance was affected by the slowdown in the Chinese economy and rising volatility in the global stock market post-pandemic[22]. - The first half of 2023 saw a global focus on restoring business activities, despite ongoing challenges such as U.S. interest rate hikes[23]. - The Hang Seng Index dropped by 4.4% in the first half of 2023, while the Hang Seng Chinese Enterprises Index fell by 4.2% during the same period[28][29]. - The U.S. Federal Reserve raised interest rates by 25 basis points in February, March, and May 2023, with current rates between 5% and 5.25%, and an expected increase to 5.5% to 5.75% by the end of 2023[28]. Asset Valuation - The unaudited net asset value per share was approximately HK$0.11 as of 30 June 2023, with a net unrealised gain of HK$33,541,773 offset by a net realised loss of HK$15,379,574 due to market volatility[22]. - The net unrealised gain on financial assets at fair value through profit or loss was HK$9,010,000 for listed securities and HK$24,531,773 for unlisted securities, totaling HK$33,541,773[189]. - The net realised loss on financial assets at fair value through profit or loss for the same period was HK$12,813,547 for listed securities and HK$2,566,027 for unlisted securities, totaling HK$15,379,574[189]. Shareholder Information - The Company’s largest shareholder, CAS International Investment Management Company Limited, holds 315,000,000 shares, representing approximately 23.87% of the issued share capital[114]. - The Company’s director, Wang Dingben, holds 68,330,000 shares, which is approximately 5.18% of the issued share capital[111]. - The Company has not purchased, sold, or redeemed any of its shares during the period[127]. Operational Efficiency - The total remuneration cost incurred by the Company for the period was approximately HK$2,027,170, a slight decrease from HK$2,080,766 for the same period in 2022[100][103]. - The company incurred finance costs of HK$64,192 for the six months ended June 30, 2023, compared to HK$22,021 in the previous year, indicating an increase in financing expenses[146]. - Gransing Financial Group Limited launched new services including online account opening and A.I. analyst services to enhance operational efficiency[63]. Corporate Governance - The company has complied with the Corporate Governance Code throughout the period[128]. - Changes in the board of directors include the appointment of two independent non-executive directors effective June 15, 2023[124]. - No arrangements were made for directors or their family members to acquire benefits through share acquisition during the period[120]. Future Outlook - The company will continue to monitor investments cautiously due to recent uncertain market conditions[22]. - The company continues to explore market expansion opportunities and new strategies to enhance its investment portfolio and overall performance[42]. - The company will maintain cost control measures and resource management to cope with economic volatility and potential challenges[57].
中国新经济投资(00080) - 2023 - 中期财报