Investment Activities - In 2023, the company completed investments in two new direct investment projects in the information technology sector, totaling $17.02 million[1]. - The company anticipates that investment growth in China will rebound in 2024 due to proactive government measures, including the issuance of additional bonds for infrastructure projects[2]. - The fund signed a preferred share purchase agreement with Moonshot AI Ltd., committing to invest $10 million for a 1.29% equity stake in the company, which focuses on developing universal multimodal large models and consumer applications[41]. - The fund agreed to invest RMB 50 million (approximately $7.02 million) in Hanwei Technology, acquiring a 6.42% equity stake[59]. - The fund's total investment value as of December 31, 2023, was $68,331 million, with financial services accounting for $38,013 million (54.93%) and information technology for $24,903 million (36.00%) of the total[63]. Financial Performance - The net profit attributable to shareholders for the year ended December 31, 2023, was $5.73 million, a significant turnaround from a net loss of $153.17 million in the previous year, primarily due to a slowdown in the decline of financial assets' fair value and a substantial increase in investment income[34]. - Investment income increased by 28.75% to $19.12 million in 2023, compared to $14.85 million in 2022, mainly due to a significant rise in dividend income from investment projects[40]. - The cash and cash equivalents balance decreased by 66.14% to $8.63 million from $25.49 million at the end of the previous year, representing 1.25% of total assets, primarily due to project investment payments[29]. - The net asset value as of December 31, 2023, was $557.94 million, down 2.38% from $571.57 million at the end of 2022, with a net asset value per share of $3.663, also down 2.38% from $3.752[34]. - The overall fair value of investment projects decreased due to a decline in the fair value of investments and a depreciation of the Renminbi exchange rate[36]. Market Conditions - The World Bank projects a global growth rate of 2.4% in 2024, marking the third consecutive year of slowdown[2]. - The global economic growth for 2023 is estimated at 2.6%, with China's GDP growth at 5.2%, driven by steady industrial production and a rapid recovery in service consumption[35]. - The Shanghai Composite Index closed at 2,975 points at the end of 2023, down 3.69% from the end of 2022[23]. - The Hang Seng Index closed at 17,047 points at the end of 2023, down 13.82% from the end of 2022[23]. Shareholder Returns - The company plans to distribute a final dividend of $0.07 per share for the fiscal year 2023, an increase of 14.29% compared to the previous year[22]. - The company plans to implement a stable dividend policy, typically distributing final dividends in cash once a year in July[197]. - The company will consider special dividends based on ideal returns from investment exits, taking into account the investment portfolio, opportunities, and commitments[197]. Risk Management and Compliance - The company has implemented measures to enhance its risk management framework and procedures[97]. - The board of directors conducted an annual review of the effectiveness of the risk management and internal control systems[99]. - The company adheres to the guidelines set by the Hong Kong Securities and Futures Commission regarding insider information disclosure[122]. - The company has implemented measures to ensure compliance with environmental regulations, reporting no non-compliance issues related to air and noise pollution laws[153]. Environmental, Social, and Governance (ESG) Initiatives - The report period covers the year ending December 31, 2023, focusing on environmental, social, and governance (ESG) issues[110]. - The company has established a framework for continuous management and improvement of its ESG policies and performance[113]. - The governance structure for ESG issues includes a dedicated team led by an executive director, supported by senior staff from various functions[114]. - The company has identified 11 key environmental, social, and governance issues as part of its sustainability strategy[140]. - The company has integrated environmental, social, and governance performance as a key performance indicator in its investment decision-making process[163]. Employee Engagement and Training - The percentage of trained employees increased to 61.11% in 2023 from 38.89% in 2022[130]. - The average training hours per employee rose to 14.95 hours in 2023 from 12.39 hours in 2022[130]. - The company provides annual health check plans for all employees to ensure their well-being[147]. - The company has established a functional communication system to enhance effective communication among employees[154]. Sustainability Goals - The company aims to reduce paper consumption density by 5% by 2025 compared to 2020 levels[144]. - The company is committed to achieving zero plastic bottle consumption by 2025[144]. - The company aims to promote zero waste office practices and has set specific sustainability goals, including reducing paper usage and increasing electronic documentation[174][175]. - The company has set a target to consider energy-saving policies as a criterion for leasing new office spaces by 2025[158]. - The company aims to reduce water resource consumption and has set a target to consider water-saving policies for new office leases by 2025[166].
招商局中国基金(00133) - 2023 - 年度财报