(Hong Kong, 25 June 2021 ) Wealthking-Innovation Capital Limited(Wealthking” or the “Company”, stock code:1140.HK) along with its subsidiaries (the “Group”) is pleased to announce its FY2020/2021 annual results for the year ended 31 March 2021(the “Year”).
The profit for the Year amounted to HK$373 million, as compared to a loss of HK$1,373 million last year;
Total comprehensive income for the Year amounted to HK$410 million, as compared to a loss of HK$1,399 million last year;
Basic earning per share amounted to HK$0.13, as compared to a loss of HK$0.47 last year;
Net asset value (NAV) amounted to HK$4.527 million, increasing by 10% year over year (YOY), or HK$1.56 per share, as compared to HK$4,114 million or HK$1.42 last year.
In the course of the reporting period, despite experiencing economic stagnation affected by the 2019-Covid pandemic (the “pandemic”) and volatile financial market resulted from the China-United States trade war, the Company achieved prominent growth from prudent investment activities, strict risk control measures, and concentrated investment management, as well as rebounded capital market and recoverable economic environment thanks to the gradually controlled pandemic.
As of 31 March 2021, the turnover in the Year recorded HK$624 million, increasing by 77% as compared to the revenue last year, which was attributable to the Company’s endeavor to increase liquidity and the ability of profit. The revenue of the Group in the Year recorded HK$110 million, decreasing by 39.21% as compared to HK$181 million last year, primarily due to the decreased dividend income and interest revenue as we exited some debt instruments and listed securities. The total comprehensive income recorded HK$410 million, as compared to a loss of HK$13,88 million last year.
During the Year, the NAV amounted to HK$4,527 million from HK$4,114 million last year, or HK$1.56 per share from HK$1.42 per share last year, attributable to the increase of carrying value of several investments as of 31 March 2021.
During the reporting period, Wealthking-Innovation Capital Limited’ investment strategy has been upgraded to a tri-engine driving strategy, which is the core-holding private equity, portfolio management, and trading, and others, so as to realise the investment principle of “cross-border, cross-sector, and cross-cycle.” Keeping the long-term core holdings as the consistent strategy, the company empowers excellent enterprises with capital. Centered on core holdings, the company makes full use of its advantages as a bridge to consolidate cross-border and cross-sector resources and build various industry funds, for deepening portfolio management of divided sectors while the trading business is to capture short-term investment opportunities for a high degree of liquidity. The company tries to build an investment portfolio that could cross market cycle and balance the liquidity and risk yield meanwhile.
The Company’s investments sectors are always tied up to the Chinese economy, science and technology, and wellbeing and followed the national strategies. The Company focuses on biotechnology, intelligent manufacturing, fintech, and other sectors with great potential. As of 31 March 2021, our top four sectors of the investment portfolio are Medical and Health (25.09%), Environment and Industrials (18.4%), Technology, Media and Telecom(“TMT”) (17.8%), and Financial Services (15.3%), which represented 77.4% of our total investment holdings. Our leading position in Medical and Health in terms of valuation was the investment in iCarbonX Group Limited, while in the Environment and Industrials sector, Dagang Holding was the largest holding. Our major investment in TMT included Jiedaibao Limited. Our major investments in Financial Services included Treasure Up Venture Limited and CSOP Asset Management Limited.
In order to cope with the economic shock and volatile capital market impacted by the 2019-Covid pandemic, the Company adjusts investment tactics timely through some divestments of non-core investments to optimize investment portfolio capturing investment return in a timely manner and reserving for our new projects. Meanwhile, the Company put more resources into mid-term PE/VC and short-term arbitrage projects with a high degree of liquidity. We invested HK$1,659 million during the Year, mainly through PE and listed securities, and our divestments amounted to HK$1,121 million, primarily derived from some short-term debt instruments, listed securities, and PE investments.
Liu Zhiwei, Chairman of Wealthking-Innovation Capital Limited commented, “2021 was the opening year of 14th Five Plan and an important beginning for Wealthking-Innovation Capital Limited after it was renamed as such. Now that the pandemic is under control in China, with prudent monetary policy, a solid manufacturing basis as well as a huge market for domestic demands, all the above will provide the Company with a favorable developmental environment and excellent investment opportunities. We adhere to the spirit of “profession, practice, excellence, and sharing” to create more value for investors in the coming year.”
Zhu Xianzhong, CEO of Wealthking-Innovation Capital Limited commented, “In the FY2020/2021, despite facing huge challenges brought by the external environment, we still obtain good results, realising a profit of HK$1,373 million in the Year from a loss of HK$373 million last year. In the coming year, we will continue to keep long-term holdings as our core investment strategy, proactively developing short-term trading business, long- and medium-term equity investments, while deepening the advantages of dual offices of Hong Kong and Shenzhen, for the purpose of seizing the market opportunities actively, optimizing cash flow constantly, which in turn steadily increases the earning ability and assets of the Company.
About Wealthking-Innovation Capital Limited (1140.HK)
Wealthking-Innovation Capital Limited (1140.HK), listed on the main board of the Stock Exchange of Hong Kong Limited, is a cross-border and cross-sector investment company with strong capability of investment, financing, and industry consolidation holding its portfolio covering listed and unlisted companies in multiple sectors. Wealthking Investment builds its cross-cycle portfolio flexibly based on different holding periods and strategies, including core-holding-centered private equity, portfolio management, and trading, and others, striving to create diversified and steady returns for shareholders.
Full details of the 2020/2021 annual results have been posted on the designated website of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk and corporate website www.wealthking.com.hk
For more information, please contact:
Tel: (852) 2842 9688
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