Tuesday, April 13, 2021
 
Columnist
Martin Hennecke
 
China Financial International Investments Limited
HKEx Stock Code : 00721 
 
Corporate Profile
Principally engaged in the investment in listed and unlisted companies established and/or doing business in Hong Kong and other parts of the PRC.

Business Review - For the year ended June 30, 2012

LISTED INVESTMENTS REVIEW

The euro zone debt crisis and slow global economic growth have contributed to uncertainties in the securities markets. Under such volatile conditions and the adverse change in global financial markets during the Year, the market value of the Group's listed securities portfolio had declined and the loss on listed securities recorded as HK$45.38 million (2011: gain of HK$24.07 million). In addition, the dividend income from listed investments decreased by 59.16% to HK$2.34 million from HK$5.73 million as compared with last year.

During the Year, all the listed securities were listed on the Stock Exchange. As at 30 June 2012, the market value of the listed securities amounted to HK$224.04 million (30 June 2011: HK$300.56 million).

UNLISTED INVESTMENTS REVIEW

Our investments in small loan companies have covered various provinces and cities in the PRC within one to two years which has made us to become one of the top brand for small loan investment chains in China. This was benefited from the Group's advantages in platform, resources, capital and team, and also attributable to market opportunities and government support in the PRC and the support and cooperation from many strategic partners.

For the year ended 30 June 2012, the change in fair value of the Group's unlisted investments portfolio was appreciated by HK$19.87 million as compared to HK$13.00 million in last year, representing a 52.85% increase, which was mainly attributable to the increase in fair value of small loan companies and a guarantee company. During the Year, the dividend income from the unlisted investments in small loan companies recorded as HK$6.80 million (30 June 2011: nil).

As at 30 June 2012, the fair value of the Group's unlisted investments, amounted to HK$550.92 million (30 June 2011: HK$311.35 million).

Business Outlook - For the year ended June 30, 2012

The year ahead is undoubtedly going to be extremely challenging, the deteriorating euro zone debt crisis continues to drag down the global economic recovery. In face of complex market situations, the Group will remain vigilant and prepare itself for any challenges. The Group has a clear direction and growth strategies. To strive for long term return to Shareholders, the Group remains optimistic about the prospect of micro finance service industry in the PRC. The Board believes that our investment values in small loan companies are built on the growth and success of business operation. We have all along been adhering to the micro finance service industry intrinsic value as our core of investment philosophy, emphasizing on the precise selection and focusing on investing in target enterprises with higher growth potential. The Group is well positioned to be an investor, a planner, a resource accumulator and an integrator in the new finance in the PRC. The Group has also implemented a diversified strategy aimed at identifying suitable investment opportunities and expanding involvement in new technology, new energy and new industries, in order to bring about better return for the Shareholders. We remain excited about the prospect and the opportunities that lie ahead and are confident that the Group is well positioned to meet future challenges and move closer to its vision to become a profitable and well diversified company.

Source: China Fin Int Inv (00721) Annual Results Announcement
Chairman Du Lin Dong Issued Capital (shares) 4,660M
Par Value HKD 0.01 Market Capitalisation (HKD) 1,025M
 
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