Fair values losses on financial assets at FVTPL reflected the losses arising from our private equity fund investments.
Financial Information · 第 390 页
Our fair value losses on financial assets at FVTPL significantly increased from RMB5.9 million in 2022 to RMB10.9 million in 2023, mainly because the net assets value of the funds we invested decreased due to the change in capital market condition, which was non-operational in nature and beyond our control.
Shenzhen EDA Group recorded financial assets at fair value through profit or loss of RMB30.2 million as of December 31, 2021, and our Group recorded financial assets at fair value through profit or loss of RMB3.1 million as of December 31, 2022.
Financial Information · 第 383 页
We typically purchase short-term low-risk wealth management products with no fixed maturity term and are redeemable at will.
Financial Information · 第 383 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 maximizing the value of our surplus cash through investments at low risk.
We purchase wealth management products as a supplemental approach to improve utilization of our cash on hand on a short-term basis.
Financial Information · 第 428 页
we only purchase low-risk wealth management products issued by qualified financial institutions, and in any given period, we invest in products provided by multiple issuers to mitigate concentration risks;
Our convertible redeemable preferred shares were measured at FVTPL and recognized as level 3 as of December 31, 2021 and 2022 and 2023.
Financial Information · 第 444 页
The fair value of the convertible redeemable preferred shares measured at FVTPL was determined using the back-solve method and the discounted cash flow method.
Financial Information · 第 444 页
(ii) carefully considered all information especially those non-market related information input, such as liquidity discount, which require management assessments and estimates; and (iii) reviewed the valuation working papers and results prepared by the valuers.
During the Track Record Period, our financial assets measured at fair value through profit or loss mainly represented the investment in certain wealth management products issued by reputable financial institutions in the PRC. We recorded RMB7.7 million, RMB124.1 million and RMB34.8 million as of December 31, 2021, 2022 and 2023, respectively.
Financial Information · 第 466 页
We have estimated the fair value of other investment in equity securities purchased by us by using a valuation model for which not all inputs are observable and is within Level 3 of the fair value hierarchy.
Financial Information · 第 468 页
Our Directors are satisfied with the valuation work for financial instruments categorized within Level 3 of fair value measurement in our Historical Financial Information as referred to in Appendix I to this prospectus.
Our financial assets at FVTPL increased from RMB387.7 million as of December 31, 2021 to RMB772.8 million as of December 31, 2022, and further to RMB1,391.6 million as of December 31, 2023, primarily because we increased our investments in financial instruments with improved cash position.
Financial Information · 第 323 页
During the Track Record Period, the wealth management products underlying our financial instruments primarily comprised bonds, generally with an average expected return of approximately 1.5% to 3.1% per year and an average return on investment of approximately 3.68%, 3.24% and
Financial Information · 第 323 页
We primarily invest in relatively low-risk wealth management products.
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.
During the Track Record Period, we purchased wealth management products, which are classified as financial assets measured at FVTPL.
Financial Information · 第 489 页
Based on the above procedures and the professional advice received, our Directors are of the view that the valuation analysis performed on level 3 financial assets at FVTPL is fair and reasonable and the financial statements of our Group are properly prepared.
Financial Information · 第 489 页
Having considered the work done by the management and the reporting accountants, and the relevant due diligence done as stated above, nothing material has come to the Sole Sponsor’s attention that indicates that the Company’s management have not undertaken independent and sufficient investigation and due diligence on such level 3 financial assets and liabilities.
Financial assets at fair value through profit or loss primarily include investments in current assets, which are our investments in wealth management products issued by major reputable commercial banks, namely China Construction Bank and Bank of Ningbo.
Financial Information · 第 305 页
Our financial assets at fair value through profit or loss subsequently increased to RMB337.9 million as of December 31, 2022, primarily due to an increase in the investment of wealth management products in 2022 in light of the proceeds we received from the financing activities.
Financial Information · 第 307 页
Based on the above procedures, our Directors are of the view that the valuation analysis is fair and reasonable, and our financial statements are properly prepared.
We purchased wealth management products of RMB305.0 million in FY2020, which included mainly 8 structured wealth management products issued by commercial banks in China with the product income linked to SHIBOR.
Financial Information · 第 500 页
Currently, we do not intend to invest in any wealth management products after the Listing.
Financial Information · 第 501 页
Our financial assets at fair value through other comprehensive income remained stable at RMB4.0 million as of December 31, 2020 and RMB4.0 million as of December 31, 2021, primarily due to the investments in two companies with an aggregate amount of RMB11.0 million during FY2021, partially offset by the (i) decrease in fair value of RMB7.0 million resulting from decrease in business enterprise value for a company engaged in AI education in relation to sports, mainly due to the valuation; and (ii) disposal of the investment in a company with a cost of RMB4.0 million.
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.
泛远国际控股集团有限公司FAR International Holdings Group Company Limited02516.HK
结构性存款及理财产品投资
The financial assets at fair value through profit or loss as at 31 December 2020, 2021 and 2022 represented contracts of principal guaranteed structured deposits and wealth management products with banks in the PRC which are presented as current assets since their maturities are within 12 months from the end of the reporting period based on the contract terms.
Financial Information · 第 408 页
We have adopted investment policies to govern our Group’s investment activities, reduce investment risks and improve our Group’s financial position.
As of December 31, 2020, 2021 and 2022 and June 30, 2023, the unlisted investments amounting to RMB50.5 million, nil, RMB15.0 million and RMB115.5 million, respectively, were pledged for issuance of bills payables.
Financial Information · 第 391 页
We form our portfolio of wealth management products with the view of achieving (i) a relatively low level of risk, (ii) good liquidity and (iii) an enhanced yield.
Financial Information · 第 391 页
After Listing, we intend to continue our investments in the wealth management products strictly in accordance with our internal policies and measures and the requirements under Chapter 14 of the Listing Rules.
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 are primarily comprised of wealth management products issued by commercial banks and financial institutions in China and unlisted equity investments.
Financial Information · 第 395 页
Our financial assets at fair value through profit or loss decreased from RMB655.2 million as of 31 December 2020 to RMB51.8 million as of 31 December 2021 due to a decrease in our structured deposits purchased in order to maintain a sufficient working capital despite adverse market conditions.
Financial Information · 第 395 页
We only purchase wealth management products offered by licensed financial institutions.
We had financial assets at FVTPL of RMB400.0 million as of December 31, 2022, representing our wealth management products with a bank with a maturity term of within 12 months.
Financial Information · 第 338 页
Investment decisions on wealth management products must be approved by our chief financial officer.
We invest our surplus cash in wealth management products, (namely, structured deposits), which are short-term (namely, no more than three months) financial products issued by reputable commercial banks in China.
Financial Information · 第 323 页
To control risk exposure, we seek low-risk financial products with terms no longer than six months and monitor their performance regularly.
As of December 31, 2019, 2020, 2021, 2022 and June 30, 2023, our investments in wealth management products amounted to RMB336.9 million, RMB132.1 million, nil, nil and nil, respectively.
Financial Information · 第 464 页
Pursuant to our internal policies, the wealth management products invested by us shall typically be limited to those with low risks and high liquidity offered by large scale, reputable and licensed banks.
Financial Information · 第 463 页
Our level 3 financial instruments included investments in wealth management products and unlisted equity securities measured at fair value through profit or loss.
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.