Financial Performance - The consolidated net asset value of the group as of December 31, 2021, was $805.70 million, an increase of 3.90% from $775.43 million in 2020[7]. - The audited profit after tax for 2021 was $24.21 million, a decrease of 73.04% compared to $89.79 million in the previous year[7]. - The company's net profit attributable to shareholders for the year ended December 31, 2021, was $24.21 million, a decrease of $65.58 million or 73.04% compared to the previous year[18]. - The net income from financial assets for the year was $48.65 million, down 61.45% from $126.20 million in the previous year[18]. - The company's net investment income decreased by 12.23% to $14.14 million, primarily due to a reduction in dividend income from investment projects[18]. - The fund's cash and cash equivalents decreased by 39.30% to $36.64 million as of December 31, 2021, from $60.36 million at the end of the previous year[24]. - The fund's cash and cash equivalents amounted to $36.64 million, representing 3.60% of total assets as of December 31, 2021[28]. - The total assets have shown a consistent increase over the years, reaching $805,697 thousand in 2021, compared to $649,050 thousand in 2019[120]. - The net profit for 2021 was $24,205 thousand, a decrease of 73% compared to $89,788 thousand in 2020[117]. - The net asset value increased to $805,697 thousand in 2021, up from $775,431 thousand in 2020, representing a growth of 3.2%[117]. Dividends - The board proposed a final dividend of $0.07 per share, maintaining the same as the previous year, and a special dividend of $0.07 per share, up from $0.01 per share last year, resulting in a total annual dividend of $0.14 per share, a 75% increase from $0.08 per share in the prior year[7]. - The company proposed a final dividend of $0.07 per share for the year 2021, totaling $21,326,622, an increase from $12,186,641 in 2020[126]. - The total dividend for 2021, including a special dividend of $0.07 per share, is $0.14 per share, compared to $0.08 per share in 2020[126]. - The company's distributable reserves as of December 31, 2021, amounted to $34,577,161, up from $24,786,454 in 2020[128]. Investments - The group completed investments in three new direct investment projects in the information technology sector, totaling $22.54 million[10]. - The total book value of the group's investment projects at the end of 2021 was $967.37 million, representing 95.05% of the total asset value, an increase of $58.10 million from $909.27 million at the end of 2020[9]. - The fund invested a total of RMB 30 million (approximately $4.6 million) in Huashun Xinan Technology Co., acquiring a 4.29% equity stake[19]. - The fund also invested RMB 35 million (approximately $5.42 million) in Xinyi Information Technology (Shanghai) Co., obtaining a 1.44% equity stake[20]. - The fund's major investment in China Merchants Bank had a book value of $422 million, constituting 41.48% of the financial services segment and 52.40% of the net asset value[33]. - The investment in the information technology sector was valued at $232.87 million, making up 22.87% of the total assets[36]. - The fund's investment in cultural media and consumption totaled $48 million, which is 4.73% of the total assets[33]. - The fund's investment in technology and medical sectors accounted for 28.89% of the net asset value[36]. - The book value of the fund's investment in AI medical technology was $41 million, representing 4.01% of the total assets[36]. - The fund completed investments in 27 projects by the end of December 2021, with 10 projects undergoing new rounds of financing and 3 projects partially exiting during the year[65]. Economic Environment - In 2021, China's GDP grew by 8.1%, with quarterly growth rates of 18.3%, 7.9%, 4.9%, and 4.0%[8]. - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling by 14.08% by the end of 2021, closing at 23,398 points[9]. - The Chinese economy is expected to stabilize in 2022, with a focus on industrial transformation and urbanization[93]. - The Central Economic Work Conference outlined seven policy measures to stabilize the macro economy in 2022[94]. Risk Factors - The fund faces significant economic risks due to its investments in Chinese enterprises, which are heavily influenced by China's macroeconomic development[98]. - Increased competition in the private equity investment market poses challenges, leading to potential price inflation of investment targets[99]. - The fund's stock market investments are subject to volatility influenced by macroeconomic factors, which can affect the net asset value of the fund[102]. - Legal uncertainties in China may limit the legal protections for investors, impacting the value of the fund's assets[103]. - Changes in government policies and regulations can significantly affect the value of the companies in which the fund invests[104]. - Currency fluctuations, particularly the RMB against the USD, can impact the financial performance of invested companies and the fund's reported net asset value[105]. - The fund's ability to repatriate profits and dividends may be restricted by Chinese foreign exchange regulations, affecting distributions to investors[106]. Governance and Management - The company has established a strong governance framework with independent directors who have extensive backgrounds in finance and investment management[139]. - The company is committed to maintaining high standards of corporate governance, as evidenced by the qualifications and experience of its board members[140]. - The board consists of three executive directors, three non-executive directors, and five independent non-executive directors as of December 31, 2021[165]. - The company has engaged Deloitte as its auditor for the upcoming annual general meeting[161]. - The independent non-executive directors have reviewed related party transactions to ensure they are conducted on normal commercial terms and in the best interest of shareholders[160]. - The company has not established a remuneration committee as all executive directors do not receive any remuneration from the company[190]. - The company provides ongoing training and support to directors to ensure compliance with corporate governance best practices[188]. Market Strategy - The company is focused on expanding its investment management services in the Greater China region, leveraging the expertise of its board members[138]. - The company aims to enhance its investment strategies by integrating insights from its diverse board, which includes professionals from various financial sectors[143]. - The company is positioned to capitalize on market opportunities in the Greater China region through strategic investments and partnerships[138]. - The fund anticipates continued investment opportunities in sectors like artificial intelligence and new infrastructure construction[94]. - Future investment directions will prioritize the financial industry, emerging technology sectors, and government-supported projects, aiming for long-term capital preservation and appreciation[95].
招商局中国基金(00133) - 2021 - 年度财报