Financial Performance - For the six months ended June 30, 2023, the company reported interest income of $5,620, a significant increase from $16 in the same period of 2022[12]. - Dividend income rose to $16,883 compared to $14,130 in the previous year, reflecting a growth of approximately 19.5%[12]. - The net gain from the sale of financial assets at fair value through profit or loss was $66,173, a substantial recovery from a loss of $375,352 in the prior year[12]. - Total revenue and investment losses amounted to $71,531, a notable improvement from a loss of $376,615 in the same period last year[12]. - The pre-tax loss for the period was $168,450, a significant reduction from $608,089 in the same period of 2022, showing improved financial performance[12]. - The total comprehensive loss for the six months ended June 30, 2023, was $168,450, compared to a loss of $608,089 for the same period in 2022, indicating an improvement of approximately 72.3%[20]. - The company recorded an unaudited net loss of $168,450 for the six months ended June 30, 2023, a decrease from a net loss of $608,089 for the same period in 2022[58]. Assets and Equity - The net asset value decreased to $1,842,127 from $2,010,577, reflecting a decline of approximately 8.3%[14]. - The total equity decreased to $1,842,127, with a net asset value per share of $0.17, down from $0.19 at the end of 2022[14]. - As of June 30, 2023, the total equity amounted to $1,842,127, a decrease from $2,373,001 as of June 30, 2022, reflecting a decline of approximately 22.4%[15]. - As of June 30, 2023, the total assets of the company were $1,922,198, with $341,769 classified as financial assets at fair value through profit or loss[32]. - The total assets as of December 31, 2022, were $2,133,038, with $452,856 classified as financial assets at fair value through profit or loss[32]. Cash Flow and Liquidity - As of June 30, 2023, cash and bank balances stood at $1,561,089, slightly down from $1,636,507 at the end of 2022[14]. - The cash and cash equivalents decreased to $1,561,089 as of June 30, 2023, from $1,663,564 as of June 30, 2022, representing a decline of about 6.1%[20]. - The operating cash flow for the six months ended June 30, 2023, was a net outflow of $75,418, compared to an inflow of $287,257 for the same period in 2022, showing a significant change in cash flow dynamics[20]. Investment Strategy - The company continues to focus on investments in listed and unlisted equity and debt securities primarily in the Greater China region, maintaining its strategic investment approach[22]. - The company’s investment strategy is considered strategic, with listed equity securities designated at fair value through profit or loss[43]. - The company aims for long-term capital appreciation through investments in listed and unlisted equity and debt securities in the Greater China region[62]. - The company plans to focus on technology stocks related to the internet and consumer themes, as well as the healthcare sector, in response to domestic economic recovery[86]. Market Performance - In the first half of 2023, China's GDP grew by 5.5% year-on-year, with Q1 growth at 4.5% and Q2 at 6.3%[66]. - The Hang Seng Index decreased by 4.37% and the Hang Seng China Enterprises Index fell by 4.18% in the first half of 2023[71]. - The company's listed investment portfolio achieved a return of 3.55% in the first half of 2023, outperforming the market[73]. - The best-performing sectors during this period were oil, coal, banking, and telecommunications, while the worst-performing sectors included property management, healthcare, automotive retail, and education[71]. Shareholder Information - The company reported a basic and diluted loss per share of 1.58 cents, down from 5.69 cents in the previous year, indicating a reduction in losses per share[12]. - The company did not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous period[37]. - The company issued 10,686,000 shares of common stock, with a par value of $0.10 per share, unchanged from the previous year[45]. Management and Governance - The company has not appointed a chairman or CEO, but the board believes that all directors contribute diverse experiences and skills to the leadership and management of the company[99]. - The board consists of five members, including one executive director, one non-executive director, and three independent non-executive directors[104]. - The company has established specific roles and responsibilities for the audit committee, remuneration committee, nomination committee, and investment committee[105]. - The investment committee is responsible for finding and evaluating investment opportunities, while the fund management company manages the daily operations of the investment portfolio[103]. Challenges and Risks - The company has no clear business or fundraising plans in the short term, leading management to believe that the business model may not be sustainable[41]. - The company’s management believes that due to ongoing operating losses and potential liabilities, it will not have sufficient working capital to maintain operations[41]. - The company is facing challenges in recruiting suitable independent non-executive directors due to talent outflow and economic uncertainties in the securities market[103]. - The company has no significant foreign exchange risk as most assets and liabilities are settled in HKD or USD, and it does not require hedging arrangements[90].
SHANGHAI GROWTH(00770) - 2023 - 中期财报