China Innovation Investment Limited (the “Company”, Stock Code: 1217), one of the few investment companies in Hong Kong focusing on the investment industry, was incorporated in the Cayman Islands with limited liability on 7th February 2002, and listed on the Main Board of The Stock Exchange of Hong Kong Limited (the Stock Exchange) on 28 August 2002.
The Company is an investment company under Chapter 21 of the Rules Governing the Listing of Securities on the Main Board of the Stock Exchange of Hong Kong Limited (the Listing Rules). Its principal investment objective is to achieve medium-term capital appreciation by investing in listed and unlisted companies.
The Company is one of the few investment companies in Hong Kong focusing investment. We invest in listed and non-listed companies with high quality to strive for medium-term gains from capital appreciation in the course of securitisation of corporate assets invested, and apply the same as our key operation strategy and income source.
Leveraging on our investment experience and well-connected network in the Mainland market over years, the Company recently invested in charge storage products, lighting products, energy-saving materials, health communications and asset management respectively through its investment. With energy conservation as our development goal, our investments have achieved breakthroughs in realizing the five industries of “New Energy”, “New Light”, “New Materials”, "New Health" and "New Capital" in real projects.
For “New Energy”, the Company invests in Topsun Creation Limited (“Topsun”), which adopts solar cell technology as its own core to develop the strategy of “Production — Research — Preliminary Research” for the research and manufacturing of solar cell application products.
For “New Light”, the Company invests in Aesthetic Vision Limited (“Aesthetic”). Aesthetic’s major product is LED lighting. It possesses of LED ergonomics technology and the LED lighting products developed are energy-saving, environmentally friendly, long-lived and small in size.
For “New Materials”, the Company invests in United Crown Future Company Limited (“United Overseas”). United Overseas’ business started from building decoration materials, as focusing on four core product concepts of green, health, environmental protection and convenience, and gradually expanded to all kinds of essential home decoration products.
For "New Health", the Company invested in FengTian Capital Limited ("FengTian"). Fengtian is principally engaged in development and sales of health communication products.
For “New Capital”, the Company invested in Grand Far Sky Limited ("Grand Far Sky"). Grand Far Sky to enterprise increasing the market value of various mainly provides solutions on obtain management benefits. Grand Far Sky purchased a full-storey office property at the central area of Shanghai, PRC during the year.
Being dedicated to outline a completed industry chain of energy conservation and to contribute its effort to green low-carbon living style, the Company is actively seeking more lucrative investment opportunities related to this sector.
Looking forward, the Company will continue to explore the investment opportunities to achieve medium-term capital appreciation.
The Company has adopted the following investment policies.
(a) the Company’s primary investment objective is to achieve medium to long-term capital appreciation by investing in listed and unlisted companies mainly in Hong Kong and the PRC (this means that at least 70% of the Company’s investments (if and when they are made) will be made in Hong Kong and the PRC). To a lesser extent, the Company may also invest in other countries should the Board of Directors consider that such investments would provide attractive returns to the Company.
(b) investments will normally be made in the form of equity-related securities and debt instruments in listed and unlisted companies engaged in industries including (but not limited to) information technology, telecommunications, manufacturing, service, property, infrastructure, life science and environmental sectors to maintain a balance in the Company’s exposure to different industry sectors in order to minimize the impact on the Company in the event of any downturn in any particular sector;
(c) investments will normally be made in companies that have long been established in the respective fields which they operate in and in companies which the Board believes there to be prospects of long-term growth. In particular, the Company will seek to identify businesses or entities with profit growth potentials, strong management, high level of technical expertise and research and development capabilities as well as management who are committed to long-term growth. The Company may also invest in companies or other entities which are considered by the Board or the Investment Manager as being special or which are in recovery situations. The Board believes that the current market conditions offer various special and attractive investment opportunities;
(d) where possible, the Board or the Investment Manager would seek to identify investments where there will be synergy between the investments and the other investee companies in which the Company has invested and where co-operation between such companies would be of mutual benefit to each other;
(e) the Company’s investments are primarily intended to be held for medium to long term capital growth as well as for income streams of interests and dividends. Nevertheless, the Board of Directors will from time to time realize investments where they believe that realisation would be in the best interests of the Company or where the terms of such realization are particularly favorable to the Company;
(f) the Company may seek borrowings to finance an investment provided that such borrowings when aggregated with the existing borrowings of the Company do not exceed 50% of the latest available Net Asset Value at the time the borrowing is made and the Company may charge or pledge its assets as security for borrowings;
(g) the Company may hedge against interest rate risks by entering into forward interest rate agreements, interest rates and bond futures contracts, interest rate swaps, and may purchase and write or sell, put or call options on interest rates and put or call options on futures on interest rates. The Company will only engage in transactions in options and futures which are traded on recognized securities or futures exchanges and for the purpose of hedging only. The Company has no intention to purchase, write or sell derivatives;
(h) the Company may not buy or sell commodities, commodity contracts or precious metals, except that it may purchase and sell futures contracts on stock indices and securities which are secured by commodities or precious metals;
(i) before suitable investment projects are identified, the Company may seek to protect the capital value of the Company’s cash assets by placing the same in bank deposits in any currency, bonds or treasury securities issued by the government of the United States or the government of Hong Kong, or their respective agencies or securities or other instruments denominated in any currency issued by various governments or international government agencies.
Investors should note that while it is the intention of the Company to invest its funds in accordance with the investment objectives and policies outlines above as far as practicable subject to market and other investment considerations, it may take some time before the funds of the Company are fully invested.
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