Financial Performance - For the six months ended June 30, 2022, the company reported a net loss of $70,991,583 compared to a profit of $61,031,772 for the same period in 2021, representing a significant decline[5]. - The total comprehensive loss for the period was $104,792,321, a stark contrast to the comprehensive income of $65,931,093 in the previous year[5]. - The company's investment income decreased to $1,646,785, down from $3,139,434 in the prior year, indicating a decline of approximately 47.5%[5]. - The company reported a pre-tax loss of $90.20 million, compared to a profit of $90.84 million in the same period of 2021, indicating a significant decline in performance[11]. - The total loss recognized in the profit and loss account for the six months ended June 30, 2022, was $85,640,580, compared to a gain of $94,839,747 for the same period in 2021[39]. - The company reported a shareholder loss of $70.99 million for the six months ended June 30, 2022, compared to a profit of $61.03 million in the same period last year, primarily due to a decline in the fair value of financial assets[90]. - The net loss from financial assets for the period was $85.64 million, a significant decrease from a net gain of $94.84 million in the previous year[90]. - The basic loss per share for the first half of 2022 was $(0.466), compared to $(0.401) for the same period in 2021, indicating a deterioration in earnings per share[63]. Asset and Liability Management - The fair value of financial assets at the end of the reporting period was $780,648,958, a decrease of 13.5% from $903,328,647 as of December 31, 2021[7]. - The company's total assets decreased to $828,771,590 from $982,043,768, reflecting a reduction of about 15.6%[7]. - The net asset value per share fell to $4.461 from $5.289, indicating a decline of approximately 15.7%[7]. - The total net assets decreased from $805.70 million on December 31, 2021, to $679.58 million on June 30, 2022, a reduction of about 15.6%[75]. - The total liabilities for the financial services segment were $53,174, a decrease from $61,734, showing improved financial management[54]. - The total segment assets reported were $819,174,810, down from $951,686,515, indicating a reduction in overall asset base[54]. Cash Flow and Liquidity - The company's cash and cash equivalents stood at $43,512,652, down from $36,641,135 at the end of 2021, reflecting an increase of approximately 18.8%[7]. - The cash generated from operating activities before changes in working capital was a negative $6.21 million, slightly improved from a negative $7.14 million in the prior year[11]. - The net cash generated from operating activities was $8.65 million, a substantial increase from $2.90 million in the same period last year, reflecting improved operational efficiency[11]. - The company recorded a net increase in cash and cash equivalents of $8.65 million, compared to an increase of $2.90 million in the previous year[11]. - As of June 30, 2022, the company's cash and cash equivalents stood at $43.51 million, down from $63.66 million at the end of the previous year, indicating a decrease in liquidity[11]. - Cash and cash equivalents increased by 18.75% to $43.51 million, up from $36.64 million at the end of the previous year, primarily due to proceeds from the sale of investment projects[99]. Investment Activities - The company made an additional investment of RMB 6.5 million (approximately $1.02 million) in Beijing Huashun Xinan Technology Co., Ltd., increasing its equity stake to 4.295%[91]. - The company exited its investment in Shenzhen Jiyang Intelligent Technology Co., Ltd., selling its 2.35% equity stake for RMB 53.13 million (approximately $8.20 million), achieving a pre-tax internal rate of return of 8.90%[92]. - As of June 30, 2022, the total investment value was $829.22 million, with financial services accounting for $510.70 million (58.47%) of the total assets[98]. - The company has committed to inject a total of RMB 50 million (approximately $7.54 million) into the Guokai Ruifeng Fund, with $5.67 million already invested as of June 30, 2022[79]. - The total investment amount in the Kexin Venture Capital Fund (Phase 3) was $22,927,700, with actual payments of $2,146,800, representing 0.126% and 0.178% respectively[177]. Operational Efficiency - Administrative expenses were reduced to $6,549,964 from $7,479,124, showing a decrease of about 12.4%[5]. - The company experienced a loss of $133,758 in interest income, which was an improvement from a loss of $217,319 in the prior year[11]. - Dividend income from equity investments decreased to $1.51 million from $2.92 million year-over-year, reflecting a decline in investment returns[11]. - The company has not reported any significant changes in its financial risk management policies during the period[19]. Market and Economic Conditions - The impact of the ongoing geopolitical situation, such as the Russia-Ukraine conflict, is not expected to have a direct and significant effect on the company's operations, as it primarily invests in businesses operating in China[18]. - The company anticipates a gradual recovery in economic activities in the second half of 2022, driven by consumption and investment demand[167]. - The global inflation is at its highest level in over 40 years, impacting monetary policies and economic growth[167]. Corporate Governance - The company has complied with all provisions of the Corporate Governance Code, except for the establishment of a remuneration committee[197]. - The mid-term financial report has been reviewed by Deloitte, ensuring compliance with the Hong Kong Institute of Certified Public Accountants standards[196]. - The independent review report is included in the mid-term report, confirming the accuracy of the financial data presented[196].
招商局中国基金(00133) - 2022 - 中期财报