Investment Performance - As of December 31, 2023, the company holds 8,734,897 shares of Global Market Group, representing 9.36% of the total issued shares[4] - The investment in Global Market Group has been fully provisioned since June 30, 2019, due to continuous business deterioration and unsuccessful fundraising efforts[4] - The fair value of the investment in Global Market Group is maintained at zero as of December 31, 2023, reflecting the company's ongoing financial struggles[4] - As of December 31, 2023, the company held 6,500 shares of Global X China Biotechnology ETF, representing approximately 0.07143% of total issued shares, with a cost of $49,029 and a fair value of $47,147, accounting for 2.90% of total assets[51] - The company recorded a realized loss of $5,044 from the investment in Global X China Biotechnology ETF in 2023, with an unrealized loss of $1,882 (-3.84%) as of December 31, 2023[51] Financial Performance - The company reported a pre-tax loss of $970,513 for the year ended December 31, 2022, primarily due to losses from financial assets classified at fair value through profit or loss[22] - The company reported a pre-tax loss of $455,345 for the year ending December 31, 2023[60] - Total revenue for the year 2023 was reported at $12,551,000, compared to a loss of $426,072,000 in 2022, indicating a significant recovery[146] - Interest income increased to $9,881,000 in 2023 from $2,108,000 in 2022, reflecting a growth of approximately 369%[146] - The company reported a net loss of $455,345,000 for 2023, an improvement from a net loss of $970,513,000 in 2022, representing a reduction of about 53%[146] - The total assets decreased from $2,010,577,000 in 2022 to $1,555,232,000 in 2023, a decline of approximately 23%[149] - The net asset value per share decreased from $0.19 in 2022 to $0.15 in 2023, reflecting a decline of about 21%[149] - The company incurred a loss of $18,852,000 from the sale of financial assets at fair value through profit or loss, compared to a loss of $480,912,000 in the previous year[146] - Administrative expenses decreased to $428,591,000 in 2023 from $493,647,000 in 2022, showing a reduction of approximately 13%[146] - The company had cash and bank balances of $1,117,399,000 in 2023, down from $1,636,507,000 in 2022, a decrease of about 32%[149] Cash Flow and Liquidity - The net cash flow from operating activities was $(519,108) in 2023, a significant decline from a positive cash flow of $260,200 in 2022[164] - The company’s total cash outflow from operating activities was $(552,431) in 2023, compared to an inflow of $234,076 in 2022, indicating a shift in cash flow dynamics[164] - The company’s cash and cash equivalents decreased to $1,117,399 at the end of 2023 from $1,636,507 at the end of 2022, representing a decline of approximately 32%[164] Internal Controls and Governance - The company has not identified any significant internal control deficiencies based on the internal monitoring review conducted in 2023[8] - The company has established internal controls to manage the risks associated with financial reporting[136] - The audit report confirms that the financial statements present a true and fair view of the company's financial position and performance for the year ended December 31, 2023[117] - The audit identified key audit matters, including the existence and valuation of financial assets measured at fair value through profit or loss[124] - The company has a responsibility to ensure that the financial statements are free from material misstatement due to fraud or error[133] Environmental and Social Responsibility - The company is committed to integrating environmental, social, and governance (ESG) factors into its business operations and investment portfolio[30] - The total amount of non-hazardous waste generated in 2023 was 227 kg, a decrease from 296 kg in 2022, resulting in a density of 227 kg per employee compared to 148 kg per employee in the previous year[49] - The company has implemented environmental measures, including double-sided printing and electronic systems to reduce paper usage[63] - The company has identified climate-related risks and is taking steps to adapt to extreme weather events[64] - The company has not reported any direct emissions from its operations, indicating a focus on sustainability[66] - The company aims to continuously reduce water usage and has not encountered issues in sourcing water[63] - The company has not disclosed any harmful waste generation, emphasizing its commitment to environmental responsibility[66] Employee and Management Information - The company had only one employee as of December 31, 2023, with a turnover rate of 50%[33] - The company emphasizes the importance of employee health and safety, adhering to occupational safety regulations and implementing various internal policies[37] - The company has established a clear reporting system for unsafe and unhealthy work environments to ensure prompt management response[37] - The highest paid employees included three directors, with total compensation for non-director and non-executive staff amounting to $132,538 in 2023, down from $192,864 in 2022, representing a decrease of approximately 31.3%[85] Shareholder and Corporate Structure - Major shareholders include Shanghai Industrial Holdings Limited with a 17.64% stake and Yuan Chufeng with a 16.67% stake[106] - The company has sufficient public float with at least 25% of shares held by the public as of the report date[110] - The board of directors includes Mr. Zhao Tian and Dr. Hua Min, with all independent non-executive directors serving a term of three years[79] - The investment management agreement with the fund management company has been extended for three years, from July 1, 2023, to June 30, 2026[95] - The performance fee for the fund management company is set at 20% of the net asset value exceeding the high watermark[93] - The company has maintained a consistent policy regarding director remuneration based on performance and responsibilities, subject to shareholder approval[92] Accounting Policies and Financial Reporting - The company has complied with the Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance in preparing its financial statements[117] - The company measures equity investments at fair value at each reporting period, with fair value defined as the price received in orderly transactions between market participants[188] - Financial assets are classified upon initial recognition as measured at amortized cost, fair value through other comprehensive income, or fair value through profit or loss, depending on cash flow characteristics and business model[194] - The company’s financial statements include a comprehensive review of significant accounting policies and related party transactions[191]
SHANGHAI GROWTH(00770) - 2023 - 年度财报