Investment Strategy and Performance - The company holds investments in five unlisted companies with book values of approximately HKD 36.15 million, HKD 53.93 million, HKD 40.96 million, HKD 34.94 million, and HKD 44.25 million respectively[13]. - The company focuses on innovative business models, such as investing in photovoltaic buildings that generate income from power companies instead of charging rent to users[15]. - The company aims to explore investment opportunities in innovative business models while fulfilling social responsibilities and leveraging investment for good[18]. - The company has not purchased or sold any listed company investments during the fiscal year ending December 31, 2023[14]. - The company continues to adhere to listing rules and established investment strategies while carefully controlling risks and seizing opportunities[10]. - The company has made significant breakthroughs in five industry sectors: new energy, new light sources, new materials, new health, and new capital[7]. - The company’s investments in unlisted companies are primarily in sectors such as energy storage products, LED lighting, health communication products, and asset management[9]. - The company’s investment strategy focuses on long-term capital appreciation through investments in quality listed and non-listed companies primarily in Hong Kong and China[54]. - The company plans to maintain a balanced risk profile by investing across various sectors, including technology, telecommunications, and life sciences[55]. - The company may engage in borrowing for investment financing, with total borrowings not exceeding 50% of the latest published net asset value[56]. - The company primarily invests in high-quality listed and unlisted companies, aiming for medium to long-term capital appreciation in the asset securitization process in China and Hong Kong[58]. - The private equity investment market in China is becoming increasingly competitive, with more investment firms entering the space, leading to challenges in acquiring potential investment targets[59]. - The company faces operational risks related to investment project evaluation and selection, which can impact investment time costs and returns[62]. - The value of the company's investments is subject to fluctuations in the stock market due to macroeconomic factors, affecting the net asset value[63]. - The company is subject to legal and regulatory risks in China, where the legal framework is still developing, potentially limiting legal protections for investors[64]. - The company’s investments are primarily in RMB, and fluctuations in the RMB exchange rate can impact the value of its investments and reported net asset value in HKD[68]. - Foreign exchange regulations in China may restrict the company's ability to repatriate profits, dividends, and capital, affecting its capacity to distribute dividends to investors[69]. Financial Performance - For the year ended December 31, 2023, the company's revenue was approximately HKD 387,620,000, a decrease of 14.1% from HKD 451,249,000 for the year ended December 31, 2022[23]. - The company recorded a net loss of approximately HKD 3,149,000 from the sale of investments measured at fair value through profit or loss, compared to a net gain of HKD 10,594,000 in the same period of 2022[23]. - The net profit attributable to shareholders for the year ended December 31, 2023, was approximately HKD 2,193,000, down 61.8% from HKD 5,756,000 in 2022[23]. - The company's net asset value as of December 31, 2023, was approximately HKD 547,668,000, a decrease from HKD 563,257,000 in 2022, with a net asset value per share of HKD 0.043 compared to HKD 0.044 in 2022[23]. - The company had unrealized holding gains of approximately HKD 6,412,000 from investments measured at fair value through profit or loss as of December 31, 2023[28]. - The company held cash and bank balances of approximately HKD 40,578,000 as of December 31, 2023, with a zero debt-to-equity ratio[34]. - The company’s distributable reserves as of December 31, 2023, are approximately HKD 419,652,000, a decrease from HKD 435,241,000 in 2022, representing a decline of about 3.5%[137]. - The company did not declare any dividends for the year, consistent with the previous year where no dividends were declared[133]. Corporate Governance - The board of directors consists of two executive directors and three independent non-executive directors, with no specified term for non-executive directors[76]. - The company adheres to corporate governance standards and has established guidelines for securities trading by employees to prevent insider trading[73]. - The board members' attendance at the annual general meeting and board meetings for the year ending December 31, 2023, was recorded, with all executive directors attending 100% of the meetings[78]. - The company has a board diversity policy aimed at ensuring a balanced mix of skills, experience, and diversity among board members, considering factors such as gender, age, and professional background[82]. - The audit committee, composed entirely of independent non-executive directors, held 2 meetings during the year, with full attendance from its members[91]. - The remuneration committee, consisting of three independent non-executive directors and one non-executive director, also achieved full attendance in its meetings[87]. - The nomination committee, responsible for proposing director appointments, had a 100% attendance rate for its members during the year[90]. - The company has appointed a dedicated internal compliance officer to oversee its internal control system, reflecting its commitment to effective governance[94]. - The independent non-executive directors confirmed their independence in accordance with the listing rules, ensuring unbiased oversight of the company's operations[81]. - The company has established an executive committee to manage daily operations, which is composed of all executive directors[86]. - The board's commitment to diversity is reflected in the appointment of new directors, including the recent appointment of Ms. Qin Han[82]. - The company has maintained a high level of governance with regular reviews and evaluations of its business performance and operational matters[86]. - The company has established procedures to prevent unauthorized use or sale of assets, ensuring accurate accounting records for reliable financial information[95]. - The audit committee and the board believe that the internal control system is sufficient and effective[96]. - The financial statements for the year ending December 31, 2023, were prepared on a going concern basis and in accordance with applicable Hong Kong Financial Reporting Standards[98]. - The auditor's fee for the review year was HKD 300,000[101]. - All current directors participated in continuous professional development during the financial review year, including attending seminars and forums[102]. Social Responsibility and Sustainability - The company is committed to environmental and social sustainability, adhering to relevant environmental laws and regulations[118]. - The company maintains ongoing communication with shareholders through various channels, including its website[110]. - Key ESG issues identified include environmental management, social responsibility, and governance accountability[170]. - The company emphasizes corporate social responsibility through various initiatives, including community investment and anti-corruption measures[173]. - The company encourages innovative thinking among employees to develop solutions for social responsibility initiatives[174]. - The company implemented energy-saving measures, including mandatory shutdown of office lighting after 10 minutes of inactivity and ensuring computers are turned off before leaving for the day[182]. - The company encourages a paperless office by reducing printer usage and promoting double-sided printing when printing is necessary[191]. - The company has established a comprehensive procurement system for energy-efficient and environmentally friendly electrical products, regularly auditing for efficiency[179]. - The company provides training on energy conservation and encourages employees to purchase eco-friendly products[180]. - The electricity consumption in the Hong Kong office for 2023 was 5,696 kWh, resulting in greenhouse gas emissions of 3,873 kg CO2-e, a slight decrease from 5,754 kWh and 4,085 kg CO2-e in 2022[192]. - 100% of the paper used in 2023 was sourced from suppliers with a "zero deforestation commitment," maintaining the same percentage as in 2022[185]. - In 2023, the office staff number decreased to 7, with printing paper usage at 6,828 A4 sheets, compared to 11 staff and 5,731 sheets in 2022[189]. Employee Development and Compensation - The total employee compensation for the year was approximately HKD 2,205,000, an increase from HKD 1,493,000 in 2022, with a reduction in staff from 21 to 18 employees[38]. - The workforce consists of 18 employees as of December 31, 2023, down from 21 in 2022, with a gender ratio of approximately 2:1 in favor of females[196]. - The company emphasizes employee development and offers rewards based on individual performance and contributions[200]. - A fair and transparent reward program is in place, with annual salary structure reviews and monthly performance assessments to ensure competitive compensation[200]. - Mandatory provident fund and accident insurance are provided for all employees[200]. - Employees can enjoy various product and service discounts from business partners to enhance their sense of belonging[200]. - The company participated in the "Good MPF Employer" recognition program for the 2022-2023 fiscal year and received accolades[200]. - Employee performance evaluation guidelines have been established to reflect departmental performance, with bonuses tied to individual performance and company results[200]. - The company adheres to a people-centric employment policy, viewing employees as its most valuable asset and driving force[200]. - Professional qualification attainment is encouraged, with necessary subsidies and allowances provided to enhance personal development and work capabilities[200]. - The company aims to motivate employees to actively engage in their work in exchange for rewards[200].
中国创新投资(01217) - 2023 - 年度财报