Annual Report 2023

46 46 China Merchants China Direct Investments Limited Annual Report 2023 DIRECTORS’ REPORT The Directors present their annual report and the audited consolidated financial statements for the year ended 31 December 2023. PRINCIPAL ACTIVITIES The Company acts as an investment holding company. The activities of the subsidiaries are set out in note 28 to the consolidated financial statements. BUSINESS REVIEW A review of the business of the Group during the year and a discussion on the Group’s prospects are provided in the Chairman’s Statement and the Investment Manager’s Discussion and Analysis on pages 4 to 5 and pages 7 to 43 of the Annual Report, respectively. Description of key risk factors and uncertainties that the Group is facing is provided in the Investment Manager’s Discussion and Analysis on pages 34 to 36 of the Annual Report and in note 4 to the consolidated financial statements while the financial risk management objectives and policies of the Group can be found in note 5 to the consolidated financial statements. An analysis of the Group’s performance during the year using financial key performance indicators is provided in the Financial Summary on page 150 of the Annual Report. In addition, discussions on the Group’s compliance with relevant laws and regulations which have a significant impact on the Group, relationships with its key stakeholders and environmental policy are contained in the Corporate Governance Report on pages 61 to 76 of the Annual Report. RESULTS AND DIVIDENDS The results of the Group for the year ended 31 December 2023 and the financial position of the Group at that date are set out in the consolidated financial statements on pages 102 to 103. The Directors recommend the payment of a final dividend of US$0.07 per share (2022: US$0.07 per share) and a special dividend of US$0.01 per share (2022: Nil), totaling US$0.08 per share (2022: US$0.07 per share) to the shareholders in respect of the year ended 31 December 2023. The final and special dividends, if approved by the shareholders at the forthcoming annual general meeting, are to be payable in cash on 26 July 2024. Total dividends for the year will amount to US$12,186,641 (2022: US$10,663,311). Shareholders may choose to receive dividend in US dollars or Hong Kong dollars. FIVE YEARS FINANCIAL SUMMARY A summary of the results and the assets and liabilities of the Group for the last five financial years is set out on page 150 of the Annual Report. DISTRIBUTABLE RESERVES OF THE COMPANY AND DIVIDEND POLICY The Company has an amount of US$43,370,766 (31 December 2022: US$36,514,464) available for distribution as at 31 December 2023. In consideration of maintaining a balance between investing for business growth and sharing the investment results with our shareholders, the Company intends to, under normal circumstances, adopt a relatively stable dividend policy and the dividends will be paid out in cash once a year, usually in the form of final dividends payable in July in each year. The Directors may also from time to time declare interim dividends as they see justified by the profits of the Company. In addition, the Company will give due consideration, including status of the investment portfolio, investment opportunities, commitments, etc., to the distribution of a special dividend upon receiving a satisfactory return from the realisation of its investments.