Our financial assets at fair value through profit or loss consist primarily of wealth management products and preferred shares investments in unlisted entities.
Financial Information · 第 402 页
The decrease from RMB144.9 million as of December 31, 2023 to RMB127.2 million as of December 31, 2024 was mainly due to the fair value change of RMB13.8 million of our investment in an unlisted company, which was attributable to its operating results not meeting expectations.
Financial Information · 第 402 页
We have a comprehensive internal control system for investments, and the investment decision-making process is cautious and prudent.
As of December 31, 2024, our financial assets at FVTPL were RMB130.9 million, representing the unlisted investments issued by a private equity fund in Hong Kong SAR.
Financial Information · 第 372 页
However, as the principal or return of investment in such private equity fund is not guaranteed, we may incur losses from such investment.
Financial Information · 第 372 页
As part of our investment strategy, we will make investments in equity interests, debts, funds and wealth management products in accordance with applicable laws and regulations and our development strategies, and at the same time carefully control investment risks.
During the Track Record Period, we had certain financial assets categorized within Level 3 fair value measurement, which included the fair value of investment in private equity fund.
Financial Information · 第 500 页
For the year ended December 31, 2024, we recognized a fair value loss of US$0.25 million on the investment in preference shares.
Financial Information · 第 550 页
To enhance our ability to monitor and manage the investment risks associated with Level 3 financial assets and similar investments, we have implemented an internal investment policy that serves as a guiding framework for our strategic investment decisions.
江苏宏信超市连锁股份有限公司JIANGSU HORIZON CHAIN SUPERMARKET COMPANY LIMITED02625.HK
持有江都农商行股权按第三层次公允价值计量
For unlisted equity securities, they represented our investment in unlisted equity interest in Jiangsu Jiangdu Rural Commercial Bank Co., Ltd.* (江蘇江都農村商業銀行股份有限公司), which is a bank which is principally engaged in offering banking services to individuals and enterprises.
Financial Information · 第 445 页
We measured the fair value of our investment in unlisted equity interest at the end of each reporting period using valuation multiples, adjusted for changing trend of medium market multiples of comparable companies.
Financial Information · 第 445 页
According to our Group’s short-term investment policies, the short-term investments are to better utilise our temporary surplus funds by investing in low-risk financial products including structured deposits and wealth management products without affecting the funds needed for our normal business operations.
Due to Guoquan’s initial public offering in November 2023, fair value measurement of Guoquan’s securities was transferred from Level 3 to Level 1.
Financial Information · 第 413 页
Our other net income/(loss) decreased from RMB23.9 million in the six months ended June 30, 2023 to negative RMB59.1 million in the same period in 2024, primarily due to a decrease in fair value change in financial assets measured at FVPL as a result of the decreased valuation of Guoquan.
Financial Information · 第 371 页
Based on the due diligence work conducted by the Joint Sponsors as stated above, and having considered the work performed by our management and audit procedures carried out by the Reporting Accountants, nothing has come to the Joint Sponsors’ attention that would cause the Joint Sponsors to question the valuation analysis in relation to the level 3 financial assets and liabilities performed by us and the audit procedures carried out by the Reporting Accountants for the purpose of expressing an opinion on the historical financial information of our Group as a whole.
Our net fair value changes of financial assets measured at fair value through profit or loss relate to fair value changes of investments in unlisted entities, mainly including minority equity investments in seven information technology service companies in the PRC with our equity interest ranging from 3.8633% to 30%.
Financial Information · 第 398 页
We recorded net fair value gains on financial assets measured at fair value through profit or loss of RMB30.9 million and net fair value losses of RMB54.7 million in 2022 and 2023, respectively, primarily due to the decreased market valuation of some of our investments during the periods.
Financial Information · 第 408 页
The relatively stable adjusted net loss (non-IFRS measure) in 2022 and 2023 and for the three months ended March 31, 2023 and 2024 despite the overall improvement in operating performance in 2023 and 2024 was partially due to the fluctuation in gains/losses recognized from the fair value changes of financial assets at fair value through profit or loss as mentioned above.
Our other financial assets at FVOCI was RMB27.5 billion, RMB17.7 billion, RMB11.1 billion and RMB7.5 billion as at 31 December 2021, 2022 and 2023 and 30 April 2024, respectively.
Financial Information · 第 281 页
Our other financial assets at FVPL primarily consist of equity securities, structured deposits, listed securities and others.
Financial Information · 第 281 页
We primarily invest in financial products issued by major commercial banks in mainland China with low risks and a short-to-mid-term.
上海声通信息科技股份有限公司Shanghai Voicecomm Information Technology Co., Ltd.02495.HK
对AI硬件私企的战略投资按公允价值计量
Our financial assets measured at FVPL increased from RMB20.0 million as of December 31, 2021 to RMB28.3 million as of December 31, 2022, and further to RMB28.6 million as of December 31, 2023, as a result of the business growth of such invested company.
Financial Information · 第 440 页
In 2021, 2022 and 2023, such changes in fair value amounted to nil, RMB8.3 million and RMB0.3 million, respectively.
Financial Information · 第 426 页
Our Board is the ultimate decision-making authority on investments, responsible for overseeing all the investment decisions and evaluating the reasons for the investment, and will conduct periodical review on the returns of our investments.
We purchased unlisted funds during FY2021, and its carrying values as at 31 December 2021, 31 December 2022 and 31 December 2023 were RMB130.3 million, RMB138.5 million and RMB147.2 million, respectively.
Financial Information · 第 448 页
Our other gains and losses increased from gain of RMB8.2 million for FY2022 to RMB9.7 million for FY2023 mainly due to the increase in gain from changes in fair value of financial assets at FVTPL as a result of increase in the fair value of the investment product during the year.
Financial Information · 第 429 页
Based on the background of the issuer of the investment fund product and the internal policies implemented by the Group as out above, the Directors considered that the credit risk exposure of the Group arising from the investment of unlisted investment fund product during the Track Record Period is low.
瑞昌国际控股有限公司RUICHANG INTERNATIONAL HOLDINGS LIMITED01334.HK
柏米嘉基金投资确认公允价值亏损
We recognised a fair value loss of approximately RMB2.3 million for the year ended 31 December 2022, resulting in a decrease of balance of our financial assets at fair value through other comprehensive income to approximately RMB14.7 million as at 31 December 2022.
Financial Information · 第 324 页
Based on the above, our Directors are of the view that the valuation of our Group’s level 3 financial instruments is fair and reasonable and the financial statements of our Group is properly stated.
As of December 31, 2020, 2021, 2022 and September 30, 2023, our financial assets at fair value through profit or loss was RMB451.9 million, RMB275.4 million, RMB271.1 million and RMB270.9 million, respectively.
Financial Information · 第 431 页
Our other income and gains – net decreased by 72.8% from RMB82.7 million in 2020 to RMB22.5 million in 2021, primarily due to a one-off gain in 2020 from the change in fair value of financial assets at FVPL of RMB54.6 million related to Hyperchain Technology.
Financial Information · 第 426 页
Our investment strategy related to wealth management products focuses on minimizing the financial risks by reasonably and conservatively matching the maturities of the portfolio to anticipated operating cash needs, while generating desirable investment returns for the benefits of our Shareholders.
During the Track Record Period, our financial assets at FVTPL comprised our investment administered by Singford, a fellow subsidiary of our Group.
Financial Information · 第 357 页
The balance of our financial assets at FVTPL was HK$27.0 million, HK$41.0 million, HK$21.1 million and HK$21.4 million as at 31 March 2021, 2022, 2023 and 30 September 2023, respectively. It is expected that the balance will be realised before Listing.
Financial Information · 第 358 页
The primary tenet of our investment strategy is ensuring the safety of principal and generating future economic benefits. Speculative investments are prohibited under our investment management policy.
普洱澜沧古茶股份有限公司PU’ER LANCANG ANCIENT TEA CO., LTD.06911.HK
持有澜沧农商行约3.9%股权按FVOCI计量
We had a financial asset at FVOCI of RMB12.9 million, RMB12.5 million, RMB11.8 million and RMB10.8 million as of December 31, 2020, 2021 and 2022 and June 30, 2023, respectively.
Financial Information · 第 332 页
Our financial asset at FVOCI represents our equity interest in a rural commercial bank in Lancang.
Financial Information · 第 332 页
Therefore, our Directors are satisfied with the valuation of our financial asset at FVOCI.
升辉清洁集团控股有限公司Shenghui Cleanness Group Holdings Limited02521.HK
2020年证券投资亏损约710万元
During the year ended 31 December 2020, 2021 and 2022 and the six months ended 30 June 2023, our fair value loss on these financial assets were approximately RMB7.1 million, nil, nil and nil, respectively.
Financial Information · 第 327 页
The total amount invested by our Group in these listed securities amounted to RMB142.8 million, among which 18.1% of the amount was financed by borrowings.
Financial Information · 第 328 页
With the use of margin financing, the significant losses contributed by this particular security magnified from approximately RMB4.8 million to RMB6.6 million.
Our financial assets at fair value through profit or loss recorded as non-current assets mainly represented our unlisted convertible redeemable preferred shares in Dmall Inc.
Financial Information · 第 314 页
During the Track Record Period, we purchased structured deposits with an annual interest rate ranging from 1.3% to 3.8%.
Financial Information · 第 315 页
The increase was primarily attributable to our unrealized fair value gains on financial assets at fair value through profit or loss, mainly representing our equity investment.
Our financial assets at fair value through profit or loss as of December 31, 2022 and June 30, 2023 consisted of investments in Windfall T&L SPC, convertible bonds issued by Huisen Global and bank wealth management products.
Financial Information · 第 387 页
The wealth management products classified as other financial assets mainly include short-term wealth management products issued by major and reputable commercial banks without guaranteed returns.
Financial Information · 第 387 页
Particularly, relevant fair values decreased, substantially as a result of the updated projections of Huisen Global’s future performance, considering the overall macroeconomic situation, its industry and market positions, and etc.
Our convertible bond was categorised within level 3 of fair value measurements, which was issued by us on 10 July 2020 and had been fully repaid on 22 April 2021.
Financial Information · 第 301 页
Our financial assets at FVOCI which are categorised within level 3 of fair value measurements were equity investment in a non-listed company which is operating an under-construction business park.
Financial Information · 第 301 页
For the assessment of the fair value of our financial assets at FVOCI, our Directors have undertaken the following key actions: (i) engaging an independent external valuer to assist our management to assess the fair value of the underlying assets; (ii) considering the independence, reputation, capabilities and objectivity of the external valuer to ensure the suitability of such valuer; (iii) reviewing and discussing with our management and the external valuer on the valuation models and approaches; and (iv) reviewing the valuation report prepared by the valuer.
On our balance sheet, our interests in associates measured at fair value, interests in associates measured using equity method, interests in joint ventures, and financial assets at FVTPL together accounted for 95.4% of our total assets as of March 31, 2023.
Summary · 第 5 页
Our financial assets and liabilities in Level 3 mainly include financial assets at FVTPL, convertible bonds, interests in associates measured at fair value and financial liabilities at fair value through profit or loss.
Financial Information · 第 389 页
Based on the above procedures, our Directors are of the view that the valuation analysis performed by the valuer is fair and reasonable, and the financial statements of our Group are properly prepared.
Our unlisted equity investment represents our investment in a limited partnership, which primarily invested in unlisted companies engaging in new energy businesses in Jiangsu province.
Financial Information · 第 400 页
As of April 30, 2023, we had investment in wealth management products amounted to RMB7.7 million.
Financial Information · 第 400 页
In general, we will only invest in products with mid to low-risk profile as defined under our investment policies.