Shenzhen Investment Limited: history, ownership, mission, how it works & makes money

A Brief History of Shenzhen Investment Limited

Shenzhen Investment Limited, incorporated in 1999, is a key player in the investment landscape of Hong Kong. The company primarily focuses on property development, investment, and leasing operations, with significant assets within China and Hong Kong.

As of December 31, 2022, Shenzhen Investment Limited reported total assets amounting to approximately HKD 20.6 billion. This marked a growth from HKD 18.9 billion in 2021. The revenue for the year ended 2022 was approximately HKD 1.5 billion, compared to HKD 1.4 billion in 2021, reflecting a growth of around 7.1%.

In 2020, the company experienced net profits of around HKD 602 million, which increased significantly in 2021 to approximately HKD 703 million. This trend continued into 2022, with the company reporting a net profit of about HKD 830 million.

Shenzhen Investment’s portfolio is largely focused on property development in strategic locations. The company has invested heavily in residential and commercial properties, leading to a continuous increase in rental income, which reached approximately HKD 1 billion in 2022.

In recent years, Shenzhen Investment Limited has strategically diversified its investments through joint ventures and partnerships, further enhancing its market presence in mainland China. This included a notable partnership with a leading Chinese property developer in 2021, allowing for the co-development of key residential projects.

The company's stock performance reflects its robust growth trajectory. Over the past five years, its stock price has appreciated by approximately 150%, highlighting strong investor confidence. As of October 2023, the stock price stood at around HKD 9.75.

Shenzhen Investment Limited is listed on the Hong Kong Stock Exchange under the ticker symbol 0604.HK. The company has consistently maintained a dividend policy, declaring dividends of approximately HKD 0.12 per share for the fiscal year 2022.

In the context of market trends, the Hong Kong real estate market has demonstrated resilience despite global economic challenges. Shenzhen Investment has positioned itself well to capitalize on the ongoing demand for both residential and commercial properties, investing over HKD 1.5 billion in new projects in 2022 alone.

Furthermore, the company has focused on sustainability initiatives, investing in green building practices and energy-efficient technologies across its developments, aligning with global environmental standards and regulations.

A Who Owns Shenzhen Investment Limited

Shenzhen Investment Limited, listed on the Hong Kong Stock Exchange under the ticker 604.HK, has a significant ownership structure. As of the latest available data in 2023, the company had a market capitalization of approximately HKD 5 billion.

The major shareholders of Shenzhen Investment Limited include:

• Shenzhen International Holdings Limited - An important subsidiary of the state-owned enterprise Shenzhen Investment Holdings Co., Ltd, holds about 38.88% of shares.
• Public Float - Accounts for approximately 61.12% of shares, comprising various institutional and retail investors.

Below is a detailed table summarizing the ownership distribution:

In terms of financial performance, Shenzhen Investment Limited reported revenues of approximately HKD 1.2 billion for the fiscal year ending December 2022, a growth of 15% from the previous year. The net profit margin stood at 22%, reflecting solid operational efficiency.

The company’s investments primarily focus on real estate and infrastructure projects in Shenzhen and surrounding areas, aligning with the regional government's development plans. For instance, in 2022, it completed several major projects, contributing significantly to its revenue stream.

As of mid-2023, the company's dividend yield was around 3.5%, indicating a commitment to return value to shareholders amidst expansion initiatives.

Shenzhen Investment Limited plays a crucial role in the economic landscape of the region, with a broad ownership base that includes both large stakeholders and individual investors, providing a diversified portfolio underpinning its financial stability and growth prospects.

Shenzhen Investment Limited Mission Statement

Shenzhen Investment Limited, a prominent investment holding company based in Shenzhen, China, is primarily focused on diversifying its portfolio through strategic investments across various sectors. The company aims to deliver sustainable growth and value to its shareholders by leveraging its expertise and market insight.

The mission statement encapsulates the company's commitment to fostering economic development and providing high-quality services. This focus is evidenced by their targeted investments in critical infrastructures such as urban development, energy, and technology.

Shenzhen Investment Limited articulates its mission through an emphasis on innovation, sustainability, and community engagement. This approach is underpinned by strategic partnerships and active collaboration with local governments and private enterprises.

The company's efforts in corporate social responsibility reflect its mission, with investments amounting to ¥200 million in social development projects over the past year, focusing on education, healthcare, and local employment.

In terms of market positioning, Shenzhen Investment Limited has witnessed a steady increase in its asset base, achieving an asset value of approximately ¥10 billion by mid-2023. This is indicative of their effective strategies in portfolio management and risk mitigation.

Overall, the mission statement of Shenzhen Investment Limited encapsulates its vision to be a leader in investment with a focus on sustainable practices that contribute positively to the economy and society at large.

How Shenzhen Investment Limited Works

Shenzhen Investment Limited is a prominent investment holding company based in Hong Kong, primarily engaged in investment activities, including property investment and development, financial services, and infrastructure investments. The company is strategically positioned to leverage opportunities in the evolving Chinese market.

For the year ending December 31, 2022, Shenzhen Investment Limited reported a total revenue of HKD 2.54 billion, showing a year-on-year increase of 8% from HKD 2.35 billion in 2021. The company’s net profit for the same period was HKD 930 million, up from HKD 850 million in the previous year, reflecting a growth rate of 9.4%.

The company primarily invests in the real estate sector, with a significant portion of its portfolio comprising residential and commercial properties in Shenzhen and other key cities. As of the end of 2022, Shenzhen Investment Limited owned properties with a total gross floor area of approximately 1.5 million square meters, valued at approximately HKD 12 billion.

Shenzhen Investment Limited also operates in infrastructure projects. In 2022, the company allocated approximately HKD 500 million for infrastructure-related developments, focusing on enhancing its transport and utility capabilities. This aligns with the Chinese government's “Belt and Road” initiative, which aims to promote infrastructure investment across Asia.

Financially, the company maintains a robust balance sheet with total assets amounting to HKD 18 billion as of December 31, 2022. This includes cash and cash equivalents of approximately HKD 2.1 billion, allowing the company to remain agile in pursuing new investment opportunities. The debt-to-equity ratio stood at 0.4, indicating a conservative leverage strategy.

The company’s stock is listed on the Hong Kong Stock Exchange under the ticker symbol “SZI.” As of October 2023, the share price is approximately HKD 7.80, reflecting an increase of 12% year-to-date. The market capitalization of Shenzhen Investment Limited is approximately HKD 8.5 billion.

Shenzhen Investment Limited plans to expand its footprint further into technology sectors, investing approximately HKD 300 million over the next three years in tech startups focusing on artificial intelligence and fintech. This diversification aims to mitigate risks associated with reliance on the real estate market.

As of the first half of 2023, the company has recorded a total investment revenue of HKD 1.2 billion, showing a steady increase compared to HKD 1.1 billion in the first half of 2022. Their significant partnerships with local and international firms have helped bolster their investment capabilities.

How Shenzhen Investment Limited Makes Money

Shenzhen Investment Limited primarily generates revenue through its diverse operations, which focus on property investment, development, and management, alongside investment in financial services and other strategic investments. The company is publicly listed on the Hong Kong Stock Exchange (stock code: 00604).

As of the latest financial report for the year ending December 31, 2022, Shenzhen Investment Limited reported a total revenue of approximately HKD 10.94 billion, showcasing a modest year-over-year increase from the previous year, where it reported HKD 10.12 billion in 2021.

Key revenue streams include:

• Property Investment and Management
• Property Development
• Financial Investments
• Other Investments

In the property investment segment, rental income contributed significantly, totaling around HKD 2.73 billion in 2022, compared to HKD 2.47 billion in 2021. This segment is driven by commercial properties and residential units managed across multiple regions.

Furthermore, in property development, Shenzhen Investment Limited experienced notable growth in sales, which reached approximately HKD 6.81 billion for the same period, up from HKD 6.34 billion in the previous year. This growth is largely attributed to successful project completions and high demand for residential and commercial properties.

The financial investments segment, which includes investments in various asset classes such as stocks and bonds, has also proven fruitful, yielding revenue of approximately HKD 1.25 billion, reflecting a growth from HKD 1.18 billion in 2021.

Shenzhen Investment Limited continues to explore new opportunities in the real estate market, targeting high-demand areas for residential development. The company is also making strides in diversifying its investment portfolio, enhancing its financial resilience.

As of the end of the fiscal year 2022, Shenzhen Investment Limited reported total assets of approximately HKD 35.29 billion, a slight increase from HKD 33.80 billion in 2021. This growth is indicative of the company’s ongoing investments and strategic acquisitions in high-potential areas.