Investment Strategy - Wealthking Investments focuses on cross-border investments in China's fast-growing industries, emphasizing long-term value creation[12]. - The investment strategy consists of three pillars: core-holding-centered private equity, portfolio management, and trading, generating returns from interests, dividends, and capital appreciation[13]. - The company aims to leverage its capital to empower high-growth potential companies through its private equity strategy[20]. - The investment strategy is structured around three pillars: core-holding-centered private equity, portfolio management, and trading, aimed at balancing liquidity and return[20]. - Wealthking Investments continues to adapt its investment vision amidst a complex and volatile market environment[14]. - The Group's investment strategy includes focusing on emerging industries guided by the Chinese government's supply-side structural reform[92]. Financial Performance - During the six months ended September 30, 2022, global economic growth momentum declined due to factors like COVID-19 variants and high inflation, impacting the international financial market[14]. - The Group recorded total revenue of HK$85.90 million for the period, representing a 75.49% increase compared to HK$48.95 million in the same period last year[169]. - Profit for the period was HK$213.21 million, up from HK$196.79 million in the previous year, primarily due to HK$104.26 million from associates and joint ventures[169]. - As of September 30, 2022, the net asset value of Wealthking Investments was HK$9,661.97 million, or HK$1.00 per share, compared to HK$5,528.24 million and HK$1.36 per share as of March 31, 2022[164]. - The gearing ratio decreased to 0.15 as of September 30, 2022, from 0.35 as of March 31, 2022[164]. - Investments at fair value through profit and loss rose by 30.37% to HK$6,802.61 million as of September 30, 2022, compared to HK$5,217.87 million as of March 31, 2022[167]. - The Group's total borrowings amounted to HK$1,428.23 million, a decrease from HK$1,844.97 million as of March 31, 2022, resulting in a debt-to-equity ratio of 14.08% compared to 32.01% previously[4]. Portfolio Composition - As of 30 September 2022, the four main sectors of the company's existing portfolio represented 68.58% of total investment holdings, including Debt and Other Instruments, Technology, Media and Telecom (TMT), Medical and Health, and Financial Services[25]. - The company's holdings in private equity amounted to HK$4,173.08 million as of 30 September 2022, with a focus on long-term core holding and other private equity investments[32]. - Wealthking Investments' holdings in other private equity amounted to HK$2,985.05 million as of September 30, 2022, with new investments of HK$677.55 million added during the period[70]. - As of September 30, 2022, the Group's position in BITIC stood at HK$488.58 million, reflecting continuous business growth during the period[79]. - The Group's investment in Wall King Industry Investment Limited decreased by 10.3% to HK$329.34 million as of September 30, 2022, due to valuation fall from RMB depreciation[86]. Key Investments - The major investment in the TMT sector includes Jiedaibao Limited, while the leading position in the Medical and Health sector is held by iCarbonX Group Limited[25]. - iCarbonX, a core holding, focuses on digital health management, with the company owning 7.73% equity interest valued at HK$1,028.39 million as of 30 September 2022[36]. - Wealthking Investments holds a 22.5% equity ownership in CSOP, with a carrying value of HK$120.44 million, reflecting a 16.10% increase from HK$103.74 million as of March 31, 2022[52]. - The investment in Nanshan Capital Holdings Ltd 7% bonds is noted as the largest investment in the Debt and Other Instruments sector[25]. - Jiedaibao, an internet fintech company, has a carrying value of HK$954.58 million, representing a 2.49% equity ownership, as of September 30, 2022[70]. Market Trends and Future Outlook - The integration of industry, technology, and financial capital is seen as a key trend propelling new industrial revolutions[12]. - The focus on emerging technology sectors is intended to drive business expansion through technological layout[14]. - Wealthking Investments anticipates that Jiedaibao's continuously growing business will generate considerable medium-term returns for the Group[75]. - The Group anticipates medium-term returns from investments in high-growth industries, supported by the management expertise of its fund partners[136]. - The Group's investment strategy aligns with China's "14th Five-Year Plan," emphasizing technology and high-end manufacturing[130]. Operational Highlights - The company increased investments in the portfolio management category to capture market opportunities while balancing liquidity and return rates[14]. - The Group made new investments totaling HK$4,356.15 million during the period, with HK$2,301.70 million allocated to debt instruments[6]. - The Group divested investments totaling HK$125.08 million, including HK$56.68 million from four listed securities[6]. - Operating and administrative expenses totaled HK$41.30 million, an increase from HK$35.92 million in the previous year, driven by brokerage commissions and trading expenses[187]. - The Board has resolved not to pay any interim dividend for the period, consistent with the previous year[187].
华科智能投资(01140) - 2023 - 中期财报