China Minsheng Financial : (1) INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2020; (2) CHANGE OF COMPANY WEBSITE ADDRESS; AND (3) CANCELLATION OF THE STRATEGY EXECUTION COMMITTEE

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China Vered Financial Holding Corporation Limited

中 薇 金 融 控 股 有 限 公 司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 245)

(1) INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2020;

1. 1. CHANGE OF COMPANY WEBSITE ADDRESS; AND
2. CANCELLATION OF THE STRATEGY EXECUTION COMMITTEE

The board (the "Board") of directors (the "Directors") of China Vered Financial Holding Corporation Limited (the "Company") presents the unaudited condensed consolidated financial statements of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2020 as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UNAUDITED)

FOR THE SIX MONTHS ENDED 30 JUNE 2020
		Six months ended 30 June
		2020		2019
	Note	HK$'000	HK$'000
Interest income	8	140,051		66,644
Commission and fee income	9	11,968		(10,115)
Investment income	10	5,011		425
Total revenue	6	157,030		56,954
Net gain/(loss) on financial assets
at fair value through profit or loss and
financial assets at fair value through		17,629
other comprehensive income			(45,458)
Other income		80		6
Trading costs		(10,030)	(1,087)
Commission expenses		(59)	-
Staff costs and related expenses		(38,810)	(44,169)
Premises expenses		(11,661)	(24,664)
Legal and professional fees		(8,591)	(6,104)
Depreciation	6	(6,203)	(2,906)
Information technology expenses		(2,466)	(2,829)
Expected credit losses allowance	16,17	(8,120)	(26,262)
Other operating expenses		(22,737)	(18,599)
Share of post-tax profit/(loss) of associates	14	23,320		(2,214)
Finance costs		(7,024)	(5,854)
Profit/(loss) before income tax	6	82,358		(123,186)
Income tax (expense)/credit	7	(14,935)	18,826
Profit/(loss) for the period		67,423		(104,360)
- 1 -

		Six months ended 30 June
		2020		2019
	Note	HK$'000	HK$'000
Profit/(loss) attributable to:		68,050
- Owners of the Company			(103,144)
- Non-controlling interests		(627)	(1,216)
		67,423		(104,360)
		HK Cents	HK Cents
		per share	per share
Earnings/(loss) per share attributable to
owners of the Company
Basic earnings/(loss) per share	12	0.20		(0.36)
Diluted earnings/(loss) per share	12	0.20		(0.36)

- 2 -

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE SIX MONTHS ENDED 30 JUNE 2020

	Six months ended 30 June
	2020		2019
	HK$'000	HK$'000
Profit/(loss) for the period	67,423		(104,360)
Other comprehensive (loss)/income
Items that will not be reclassified to profit or loss
Net change on fair value of financial assets at
other comprehensive income, net of tax	(36,589)	(53,728)
Items that may be reclassified subsequently to profit or loss
Net change on fair value of financial assets at
other comprehensive income, net of tax	(11,496)	3,570
Exchange differences on translation of foreign operations	(4,179)	1,774
Other comprehensive loss for the period, net of tax	(52,264)	(48,384)
Total comprehensive income/(loss) for the period	15,159		(152,744)
Total comprehensive income/(loss) for the
period attributable to:
- Owners of the Company	11,056		(152,525)
- Non-controlling interests	4,103		(219)
	15,159		(152,744)

- 3 -

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

AS AT 30 JUNE 2020

			30 June		31 December
			2020	2019
		Note	HK$'000		HK$'000
ASSETS
Non-current assets
Property, plant and equipment	13	21,907	27,022
Right-of-use assets		22,822	24,630
Goodwill		15,871	15,871
Other intangible assets		700	700
Investments in associates	14	164,575	138,942
Rental and other deposits		3,605	6,585
Financial assets at fair value through profit or loss	15	1,105,598	853,734
Financial assets at fair value through
	other comprehensive income	16	1,772,492	1,372,404
Financial assets at amortised cost		402,630	523,001
Deferred tax assets		96,847	99,194
Total non-current assets		3,607,047	3,062,083
Current assets
Margin receivables and other trade receivables		74,070	78,709
Financial assets at fair value through profit or loss	15	420,648	217,587
Financial assets at fair value through
	other comprehensive income	16	62,698		-
Financial assets at amortised cost		369,269		-
Loan and interest receivables	17	77,380	175,089
Other interest receivables		52,863	53,058
Tax receivables		578	694
Other receivables, prepayments and deposits		45,690	13,294
Pledged bank deposits		302	292
Deposits with brokers		435,007	18,936
Cash and bank balances		315,559	2,117,233
Total current assets		1,854,064	2,674,892
Total assets		5,461,111	5,736,975

- 4 -

	30 June	31 December
	2020		2019
Note	HK$'000	HK$'000
EQUITY
Equity attributable to owners of the Company
Share capital	6,154,374		6,154,374
Other reserves	411,788		647,082
Accumulated losses	(1,291,420)	(1,359,470)
	5,274,742		5,441,986
Non-controlling interests	(240,263)	(244,366)
Total equity	5,034,479		5,197,620
LIABILITIES
Non-current liability
Lease liabilities	13,514		11,534
Total non-current liability	13,514		11,534
Current liabilities
Loan and interest payables	75,200		312,933
Margin payables	229,402		31,325
Current tax liabilities	42,055		30,051
Accruals and other payables	56,821		139,996
Lease liabilities	9,640		13,516
Total current liabilities	413,118		527,821
Total liabilities	426,632		539,355
Total equity and liabilities	5,461,111		5,736,975

- 5 -

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. GENERAL INFORMATION
   China Vered Financial Holding Corporation Limited (formerly known as China Minsheng Financial Holding Corporation Limited) (the "Company") and its subsidiaries (together, "the Group") was incorporated in Hong Kong with limited liability. The address of its registered and business office is 22/F, China Taiping Tower, 8 Sunning Road, Causeway Bay, Hong Kong. The condensed consolidated financial statements were authorised for issue on 26 August 2020.
   The Company has its primary listing on the Main Board of the Stock Exchange of Hong Kong Limited. The
   Company changed its English name from "China Minsheng Financial Holding Corporation Limited" to "China Vered Financial Holding Corporation Limited" and its Chinese name from "中國民生金融控股有限 公司" to "中薇金融控股有限公司" on 13 July 2020.
   The Company is an investment holding company. The principal activities of its principal subsidiaries include investment holding, provision of asset management services, consultancy services, financing services, securities advisory and securities brokerage services.
   These condensed consolidated financial statements are presented in Hong Kong dollars ("HK$"), unless otherwise stated.
   The financial information relating to the year ended 31 December 2019 that is included in the condensed consolidated financial statements for the six months ended 30 June 2020 as comparative information does not constitute the Company's statutory annual consolidated financial statements for that year but is derived from those financial statements. Further information relating to these statutory financial statements required to be disclosed in accordance with section 436 of the Hong Kong Companies Ordinance (Cap. 622) is as follows:
   The Company has delivered the financial statements for the year ended 31 December 2019 to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Hong Kong Companies Ordinance (Cap. 622).
2. BASIS OF PREPARATION
   These condensed consolidated financial statements have been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and in compliance with Hong Kong Accounting Standard ("HKAS") 34, Interim Financial Reporting, issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"). The condensed consolidated financial statements were reviewed by the Audit Committee. The Board of Directors of the Group has approved the condensed consolidated financial statements on 26 August 2020.
   The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended 31 December 2019, which have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs").
   The condensed consolidated financial statements are unaudited, but has been reviewed by PricewaterhouseCoopers in accordance with Hong Kong Standards on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by HKICPA.

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1. ACCOUNTING POLICIES
   The accounting policies applied in preparing these condensed consolidated financial statements are the same as those applied in preparing the consolidated financial statements for the year ended 31 December 2019, as disclosed in the Annual Report for 2019.
   Standards applied during half-year to 30 June 2020
   There were no new standards or amendments to standards that had a material effect to these interim condensed consolidated financial statements.
2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
   The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
   In preparing this condensed consolidated financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2019.
3. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
4. 1. Financial risk factors
      The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, price risk and interest rate risk), credit risk and liquidity risk.
      The interim condensed consolidated financial information do not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 31 December 2019.
      There have been no material changes in the risk management policies since year end.
   2. Liquidity risk

Compared to year ended 31 December 2019, the contractual undiscounted cash out flows for financial liabilities in the Group is as follows:

As at 30 June 2020
	On demand
	or less than		Between		Between
	1 year		1 and 2 years		2 and 5 years	Over 5 years	Total
	HK'000		HK$'000		HK$'000	HK$'000	HK$'000
Loan and interest payables	3,513	76,533		-	-	80,046
Margin payables	229,402		-		-	-	229,402
Other payables	8,938		-		-	-	8,938
Lease liabilities	9,640	8,742	4,772	-	23,154
	251,493	85,275	4,772	-	341,540

- 7 -

As at 31 December 2019
	On demand
	or less than		Between		Between
	1 year		1 and 2 years		2 and 5 years	Over 5 years	Total
	HK'000		HK$'000		HK$'000	HK$'000	HK$'000
Loan and interest payables	329,971		-		-	-	329,971
Margin payables	31,325		-		-	-	31,325
Other payables	83,426		-		-	-	83,426
Lease liabilities	13,516	8,745	2,789	-	25,050
	458,238	8,745	2,789	-	469,772

5.3 Fair value of financial assets and liabilities

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
• Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).
• Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

The following table presents the Group's financial assets and liabilities that are measured at fair value as at 30 June 2020.

		Level 1		Level 2		Level 3	Total
		HK$'000		HK$'000		HK$'000	HK$'000
Assets
Financial assets at fair value
through profit or loss
- Listed equity investments	238,611		-		-	238,611
- Unlisted equity investments	-		-	457,454	457,454
- Unlisted investment funds	-		-	169,369	169,369
- Convertible bonds, note and loan	-	53,111	344,942	398,053
- Leverage note	-		-	45,572	45,572
- Structured note	-		-	174,383	174,383
- Listed debt investments	-	42,804		-	42,804
Financial assets at fair value
	through other comprehensive
	income
- Unlisted investment funds	-	137,856	434,021	571,877
- Listed debt investments	-	1,263,313		-	1,263,313
Total	238,611	1,497,084	1,625,741	3,361,436

- 8 -

The following table presents the Group's financial assets and liabilities that are measured at fair value as at 31 December 2019.

	Level 1		Level 2		Level 3	Total
	HK$'000		HK$'000		HK$'000	HK$'000
Assets
Financial assets at fair
value through profit or loss
- Unlisted equity investments	-		-	459,669	459,669
- Unlisted investment funds	-		-	180,199	180,199
- Convertible bonds	-	52,450	295,938	348,388
- Listed equity investments	44,328		-		-	44,328
- Listed debt investments	-	38,737		-	38,737
Financial assets at
fair value through other
comprehensive income
- Unlisted investment fund	-	168,600		-	168,600
- Listed debt investments	-	1,203,804		-	1,203,804
Total
44,328	1,463,591	935,806	2,443,725
Liabilities
Derivative financial instruments
- Total return swap	-		-		-	-
Total
-		-		-	-

The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting period. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in level 1. Instruments included in level 1 comprise primarily listed equity investments classified as financial assets at fair value through profit or loss.

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Unlisted investment funds classified as level 2 is mainly because they are open-ended investment fund and their underlying investments are listed equity investments.

Unlisted investment funds classified as level 3 is principally due to their underlying investments are unlisted equity or unlisted debt investments.

Below is the table setting out quantitative information about fair value measurements using significant unobservable inputs (Level 3).

- 9 -

						Relationship of
		Fair value as at	Valuation	Unobservable		unobservable
Equity investments	30 June 2020	techniques	input	Range	inputs to fair value
		HK$'000
Unlisted investment	97,655	Market approach	Sales multiples	1.5x-9.5x	The higher the multiples,
	funds					the higher the fair value
		71,714	Net asset value	n/a	n/a	n/a
			(note a)
		434,021	Recent transaction	n/a	n/a	n/a
Unlisted equity	457,271	Market approach	Sales multiples	4.1x-8.7x	The higher the multiples,
	investment					the higher the fair value
					1.8x-3.3x	The higher the multiples,
						the higher the fair value
Convertible bonds	294,514	Recent transaction	n/a	n/a	n/a
		36,020	Recent transaction	n/a	n/a	n/a
Convertible loan	14,408	Recent transaction	n/a	n/a	n/a
Structured note	174,383	Recent transaction	n/a	n/a	n/a
Leverage note	45,572	Recent transaction	n/a	n/a	n/a
		Fair value as at				Relationship of
		31 December	Valuation	Unobservable		unobservable
Equity Investments	2019	techniques	input	Range	inputs to fair value
		HK$'000
Unlisted investment	98,127	Market approach	Sales multiples	1.5x-9.5x	The higher the multiples,
	funds					the higher the fair value
		82,072	Net asset value	n/a	n/a	n/a
			(note a)
Unlisted equity	459,483	Market approach	Sales multiples	4.1x-8.7x	The higher the multiples,
	investment					the higher the fair value
				Book multiples	1.8x-3.3x	The higher the multiples,
						the higher the fair value
Convertible bond	295,938	Recent transaction	n/a	n/a	n/a

1. The Group has determined that the reported net asset value represents fair value at the end of the reporting period.

- 10 -

There have been no significant transfers between level 1, level 2 and level 3 for the period ended 30 June 2020.

There is no significant inter-relationship between unobservable inputs that materially affect fair values.

The following table presents the changes in level 3 items for the period/year ended 30 June 2020 and

31 December 2019 for recurring fair value measurements:

	30 June	31 December
	2020		2019
	HK$'000	HK$'000
Opening balance as at beginning of the period/year	935,806		2,000,109
Purchases	705,376		298,167
Disposals	-	(1,173,611)
Transfer from level 2	-	134,136
Amounts recognised in profit or loss
Currency translation difference	(4)	(4)
Net loss recognised at financial assets at fair value
through profit or loss	(15,437)	(322,991)
Closing balance as at period/year end	1,625,741		935,806

• includes unrealised gains/(losses) recognised in profit or loss   attributable to balances held at the end of the

reporting period/year	(15,437)	(409,495)

5.4 Fair value of financial assets and liabilities measured at amortised cost

The fair value of the following financial assets and liabilities approximate their carrying amount:

• Margin receivables and other trade receivables
• Financial assets at amortised cost
• Loan and interest receivables
• Deposits with brokers
• Cash and bank balances
• Pledged bank deposits
• Other interest receivables
• Other payables
• Margin payables
• Loan and interest payables
• Lease liabilities

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6 SEGMENT INFORMATION

Chief operating decision maker ("CODM") has been identified as the Executive Directors of the Company. Management has determined the operating segments based on the reports reviewed by the CODM that are used to assess performance and allocate resources. The CODM considers the business from the operations nature perspective, including the provision for asset management services ("Asset management"), securities brokerage services ("Securities brokerage"), investment holding ("Investment holding") and investment banking ("Investment banking"). Each of the Group's operating segments represents a strategic business unit that is managed by different business unit leaders. Information provided to the CODM is measured in a manner consistent with that in the condensed consolidated financial statements.

The segment information provided to the CODM for the reportable segments for the six months ended 30 June 2020 and 2019 is as follows:

Six months ended 30 June 2020

											Reportable
			Asset	Securities	Investment	Investment	segment	Unallocated
		management	brokerage	holding	banking	total	amount	Total
			HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000
													(Note)
Revenue from external customers	23		11,575		141,206	-	152,804	4,226	157,030
Net gain/(loss) on financial assets at
fair value though profit or loss
and financial assets at fair value
	through other comprehensive		-	-	14,620	-	14,620	3,009	17,629
	income
		23		11,575		155,826	-	167,424	7,235	174,659
Segment profit/(loss) before
(9,292)	(11,818)	152,020	(1,131)	129,779	(47,421)	82,358
	income tax
Other segment information:
2		8,103		127,720	-	135,825	4,226	140,051
Interest income
Depreciation and amortisation	(120)	(1,376)	(5)	-	(1,501)	(4,702)	(6,203)
Six months ended 30 June 2019
											Reportable
			Asset	Securities	Investment	Investment	segment	Unallocated
			management	brokerage	holding	banking	total	amount	Total
			HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000
													(Note)
Revenue from external customers	(25,917)	32,943		40,002	-	47,028	9,926	56,954
Net (loss)/gain on financial assets at

• fair value through profit or loss
• and financial assets at fair value
• through other comprehensive

income	-	-	(45,840)	-	(45,840)	382	(45,458)
	(25,917)	32,943		(5,838)	-	1,188	10,308	11,496
Segment loss before income tax	(31,550)	(14,491)	(7,776)	(2,009)	(55,826)	(67,360)	(123,186)
Other segment information:
Interest income	-	27,629		29,089	-	56,718	9,926	66,644
Depreciation and amortisation	(30)	(761)	-	-	(791)	(2,115)	(2,906)

Note: The "unallocated amount" primarily included unallocated expenditures for head office operations as well as interest income and interest expenses incurred for general working capital.

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7 INCOME TAX

Hong Kong profits tax has been provided at the rate of 16.5% (2019: 16.5%) on the estimated assessable profits arising in Hong Kong during the period and taxation on profits assessable elsewhere have been calculated at the rates of income tax prevailing in the countries in which the Group operates respectively.

The PRC Enterprise Income Tax rate is 25% (2019: 25%).

		Six months ended 30 June
		2020		2019
		HK$'000	HK$'000
	Hong Kong Profits Tax
	- charge for the period	10,715		4,642
	- underprovision/(overprovision) for prior year	1,468		(593)
	PRC Enterprise Income Tax
	- charge for the period	220		31
	Overseas income tax
	- charge for the period	185		-
	Deferred tax
	- charge/(credit) for the period	2,347		(22,906)
	Income tax expense/(credit)	14,935		(18,826)
8	INTEREST INCOME
		Six months ended 30 June
		2020		2019
		HK$'000	HK$'000
	Interest income from loan lending business	8,610		40,437
	Interest income from margin financing business	7,966		13,169
	Interest income from investment in debt instruments
	classified as financial assets at amortised cost	29,353		-
	Interest income from financial assets at fair value through
	other comprehensive income	64,851		3,065
	Interest income from financial assets at fair value through profit or loss	24,776		-
	Other interest income	4,495		9,973
		140,051		66,644
9	COMMISSION AND FEE INCOME
		Six months ended 30 June
		2020		2019
		HK$'000	HK$'000
	Advisory fee income	116		-
	Commission income from securities brokerage	1,485		2,883
	Loan arrangement fee income	5,374		9,712
	Management fee income earned from asset management	2,066		3,191
	Performance-based fee income earned from asset management	(2,161)	(29,108)
	Referral fee income	-	776
	Underwriting fee income	5,088		2,431
		11,968		(10,115)

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10 INVESTMENT INCOME
	Six months ended 30 June
	2020	2019
	HK$'000		HK$'000
Dividend income	5,011	425
	5,011	425

1. DIVIDENDS
   The Directors have resolved not to declare any interim dividend in respect of the six months ended 30 June 2020 (six months ended 30 June 2019: Nil).
2. EARNINGS/(LOSS) PER SHARE Basic earnings/(loss) per share
   The calculation of basic earnings/(loss) per share attributable to owners of the Company is based on the profit for the period attributable to owners of the Company of approximately HK$68,050,000 (2019: loss for the period of approximately HK$103,144,000) and the weighted average number of ordinary shares of 33,357,539,000 (2019: 28,928,719,000) in issue during the period (excluding the ordinary shares purchased by the Company under the share award plan).
   Diluted earnings/(loss) per share
   The calculation of the diluted earnings/(loss) per share attributable to owners of the Company is based on the profit for the period attributable to owners of the Company of approximately HK$68,050,000 (2019: loss for the period approximately HK$103,144,000). The weighted average number of ordinary shares used in the calculation is the number of ordinary shares of 33,348,034,000 (2019: 28,928,719,000) in issue during the period (excluding the ordinary shares purchased by the Company under the share award plan) and the weighted average number of ordinary shares of 1,366,425,000 (2019: Nil) deemed to be issued assuming the diluted impact on the shares under the share award plan.
3. PROPERTY, PLANT AND EQUIPMENT
   During the six months ended 30 June 2020, the Group acquired property, plant and equipment with a cost of HK$1,371,000 (six months ended 30 June 2019: HK$20,346,000).
   Property, plant and equipment with a net book value of HK$272,000 were written off by the Group during the six months ended 30 June 2020 (six months ended 30 June 2019: HK$684,000), resulting in a net loss on written off of HK$272,000 (six months ended 30 June 2019: net loss of HK$684,000).
4. INVESTMENTS IN ASSOCIATES
   Set out below are the associates of the Group as at 30 June 2020 which, in the opinion of the directors, are material to the Group.

			Percentage of
		Country of	ownership	Nature of the	Measurement
Name of entity	Place of business	incorporation	interest	relationship	method
Grand Flight Holding Company	The PRC	Cayman Islands	30%	Note 1	Equity
Limited
Grand Flight Hooyoung	The PRC	Cayman Islands	30%	Note 2	Equity
Investment L.P.

- 14 -

Note 1: Grand Flight Holding Company Limited is a company registered in Cayman Islands.

Note 2: Grand Flight Hooyoung Investment L.P. is an investment fund registered in Cayman Islands.

The total capital contributions for the investment was US$25,087,000 (approximately HK$200,229,000). There is no quoted market price available for both associates.

30 June 31 December

2020 2019

HK$'000 HK$'000

Investments in associates	164,575	138,942

The following table shows financial information of the associates of the Group.

	Grand Flight	Grand Flight
	Holding	Hooyoung
	Company	Investment
	Limited	L.P.
	HK$'000	HK$'000
At 30 June 2020:
Current assets	25,035		532,626
Current liabilities	(9,078)	-
Net current assets	15,957		532,626
Six months ended 30 June 2020:
Revenue	7,714		-
Profit	2,028		78,044
Total comprehensive income	2,028		78,044
Opening net assets 1 January	14,000		449,142
Increase in equity interest	-	7,719
Profit for the period	2,028		78,044
Currency translation difference	(71)	(2,279)
Closing net assets	15,957		532,626
Interest in associates (30%)	4,787		159,788

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15 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS Financial assets at fair value through profit or loss include the following:

		30 June		31 December
		2020	2019
		HK$'000		HK$'000
Financial assets at fair value through profit or loss
Unlisted investment funds	169,369	180,199
Unlisted equity investments	457,454	459,669
Convertible bonds, note and loan	398,053	348,388
Leverage note	45,572		-
Structured note	174,383		-
Listed equity investments	238,611	44,328
Listed debt investments	42,804	38,737
		1,526,246	1,071,321
Classified as:
	Non-current assets	1,105,598	853,734
	Current assets	420,648	217,587
		1,526,246	1,071,321

16 FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Financial assets at fair value through other comprehensive income include the following:

		30 June		31 December
		2020	2019
		HK$'000		HK$'000
Financial assets at fair value through other
	comprehensive income
Unlisted investment funds	571,877	168,600
Listed debt investments	1,263,313	1,203,804
		1,835,190	1,372,404
Classified as:
	Non-current assets	1,772,492	1,372,404
	Current assets	62,698		-
		1,835,190	1,372,404

Expected credit losses allowances ("ECL allowances") attributable to financial assets at fair value through other comprehensive income as at 30 June 2020 amounted to HK$584,000 (31 December 2019: HK$ Nil), the increase in ECL allowances of HK$584,000 was recognised in condensed consolidated statement of comprehensive income.

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17 LOAN AND INTEREST RECEIVABLES

The following is an ageing analysis of loan and interest receivables based on the contract note at the reporting date:

	30 June	31 December
	2020		2019
	HK$'000	HK$'000
Not past due or less than 1 month past due	51,642		200,331
1-3 months past due	-	-
3-6 months past due	51,004		-
6 months to 1 year past due	-	264,375
Over 1 year past due	264,375		-
	367,021		464,706
Less: ECL allowances	(289,641)	(289,617)
	77,380		175,089

As at 30 June 2020, these loans receivable bear interest at fixed rate ranged from 8.9% to 11.5% per annum (31 December 2019: 8.0% to 11.5% per annum). Interest income derived from loan receivables was recognised and presented under "Interest income from loan lending business" (Note 8). The carrying value of the loan receivables approximate to their fair values.

ECL allowances attributable to loan and interest receivables as at 30 June 2020 amounted to HK$289,641,000 (31 December 2019: HK$289,617,000), the increase in ECL allowances of HK$24,000 was recognised in the condensed consolidated statement of comprehensive income.

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MANAGEMENT DISCUSSION AND ANALYSIS

Review

The outbreak of the COVID-19 in 2020 posed a significant challenge to the global economy. The epidemic caused disruptions to stable economic conditions and the global economy may enter its worst recession since the "Great Depression". As the Purchasing Managers' Index (PMI) and the leading indexes for Organization for Economic Cooperation and Development (OECD) have deteriorated, the International Monetary Fund (IMF) has significantly lowered its global economic growth expectations. Since the financial market in the United States has been hit hard by the epidemic and the real economy began to weaken, the Federal Reserve launched an unprecedented easing policy. The prosperity indexes for the European economy also plunged. The Bank of England made two emergency interest rate cuts, while the European Central Bank launched a pandemic emergency bond purchase programme. In the face of a recession in economy, the Japanese government launched the largest-ever economic stimulus plan. In view of the overall sluggish economy of emerging economies, the policies were further relaxed.

The epidemic has also had a substantial impact on the PRC economy. In the first quarter of 2020, the macroeconomic activities have reduced, and the investment, consumption and import and export demand have experienced a slump. Certain industries have stagnated with insufficient industrial production. In order to stabilize the economy, the PRC, like other major economies in the world, has launched a large-scale economic rescue plan. Given the ongoing success in the prevention and control of the epidemic as well as the resumption of work and production at home, coupled with the easing of lockdown measures to kick-start the economy across Europe and the United States in the second quarter of the year, the economy in the PRC is expected to gradually stabilize and recover.

Against the backdrop of the global outbreak of the epidemic, sluggish economy and intensifying tensions among great powers, the economy in the PRC has been facing a shift in growth momentum and rebalancing its asset allocation. In response to changes in the macroeconomy and market transformation, the Company has optimized the allocation of its major assets, increased the proportion of equity investments, and shifted from its previous income model focusing on fixed income investments and debt assets, so as to significantly reduce the risks of asset concentration and improve the value of its investment portfolio.

In the first half of 2020, the Company, as a full licensed professional financial corporation in Hong Kong, has strategically focused on its businesses in the PRC, Hong Kong, and Japan, with an aim to improve its asset management business, build a brand name of investment banking, establish an all-round investment industrial chain and provide its customers with a cross-border integrated financial services platform. In the first half of the year, the Company strategically increased its investments in equity assets and emphasized on "deployment + investment", laying a solid foundation for the development of "investment banking + investment" as its major business line in the second half of the year.

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Looking back at the first half of 2020, as for securities investments for proprietary trading, the Group's investments in US$ bonds issued by China-affiliated corporations exceeded HK$1.6 billion, and the Group's investments in A shares and shares on Shanghai-Hong Kong Stock Connect amounted to approximately HK$500 million. As for the investment business, the Company has completed structured investments of over HK$300 million and fund investments of over HK$500 million, so as to diversify its asset allocation. As for the asset management business, the Company has aggressively improved its asset management capabilities in the first half of the year. On top of its existing management scale of HK$1.4 billion, the Company is committed to accomplishing its business goal of raising US$200 million in the second half of the year. As for the investment banking business, the Company has been actively participating in private placement of US$ bonds and IPO projects to enhance its brand name of investment banking. In the first half of the year, the Company has actively explored overseas investments, and initiated the establishment and management of a Japanese fund with a committed contribution of 4 billion yen (equivalent to approximately HK$280 million) focusing on investments in companies and projects with technological advantages and leading positions in the industries. The Company has completed its investments in two Japanese high- tech enterprises. In addition, the Company has aggressively optimized its assets and expanded various financing channels to support its future business development.

Prospect

In the second half of 2020, the global economy will be clouded by uncertainties arising from the outbreak of the epidemic and rising international tensions.

In the second half of the year, the Company will adhere to its business model of "investment banking + investment", focus on researches on new cyclical industries such as technology and consumption sectors and the relationship between A shares and H shares, and select high- quality and cost-effective targets for medium and long-term investments.

Since 13 July 2020, the English name of the Company has been changed from "China

Minsheng Financial Holding Corporation Limited" to "China Vered Financial Holding Corporation Limited" and the Company's Chinese name has been changed from "中國民生金 融控股有限公司" to "中薇金融控股有限公司".

The Company will continue its prudent development strategic direction with "Setting a Foothold in Hong Kong, Covering Asia, Focusing on the Future Globalization Process" as its long-term goal. We will rely on the position of Hong Kong as the international financial centre to seize the opportunities arising from the establishment of Guangdong-HongKong-Macau Greater Bay Area, integration of Shenzhen, Hong Kong and Macau, and the connection between capital markets of China, Hong Kong and Japan, aggressively expand and push forward the businesses in leading economies of Asia. The Company will grasp market opportunities for steadying business expansion, hence maximizing the interests of all our shareholders and investors.

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Significant Investments

As at 30 June 2020, the Group had investments in financial assets at fair value through profit or loss, finance assets at fair value through other comprehensive income and financial assets at amortised cost with an aggregate carrying amount of approximately HK$4,133,335,000 (as at 31 December 2019: HK$2,966,726,000). The details of significant investments (each of which carrying value more than 2% of the total assets of the Group) as at 30 June 2020 are as follows:

										Unrealised
										gain/(loss)
									Percentage	on change
								Fair value/	of Group's	in fair value	Realised
						Number of		Carrying	total assets	for the	gain for the
Name, of investee company/	Nature of			shares/units	Investment	value as at	as at	period ended	period ended
fund	investments	Classification	held	costs	30 June 2020	30 June 2020	30 June 2020	30 June 2020
							HK$'000	HK$'000	HK$'000	HK$'000	HK$'000
eToro Group Ltd.	Investment in	Financial assets at fair value	1,216,248	391,891	457,271	8.4%	(2,211)	-
			unlisted preferred	through profit or loss
			shares
Wison Offshore &	Investment in	Financial assets at fair value	Not applicable	298,167	294,514	5.4%	(1,424)	-
	Marine Ltd.		unlisted note	through profit or loss
PAOH Tactical Issuance	Investment in	Financial assets at fair value	Not applicable	175,227	174,383	3.2%	(843)	-
	Limited		unlisted note	through profit or loss
Oakwise Innovation Fund SPC	Investment in	Financial assets at fair value	Not applicable	434,150	434,021	7.9%	-	-
	- SP3		unlisted		through other comprehensive
			investment fund		income
Chariot SPC Fund -	Investment in	Financial assets at fair value	24,000	240,000	137,856	2.5%	-	-
	Chariot SP II		unlisted		through other comprehensive
			investment fund		income
Agile Group	Investment in	Financial assets at fair value	150,000	117,655	116,451	2.1%	-	-
	Holdings Ltd.		listed bond		through other comprehensive
					income
Great Courage	Investment in	Financial assets at amortised cost	Not applicable	186,009	186,007	3.4%	-	-
	Global Ltd.		unlisted note
Tea Leaf Limited	Investment in	Financial assets at amortised cost	Not applicable	135,042	137,893	2.5%	-	-
			unlisted bond
Kaisa Group	Investment in	Financial assets at amortised cost/	371,000	295,278	295,378	5.4%	(124)	1,350
	Holdings Ltd.		listed bond	financial assets at fair value
					through other comprehensive
				income/ financial assets at fair
				value through profit or loss
Zensun Enterprises Ltd.	Investment in	Financial assets at amortised	300,000	232,276	230,190	4.2%	-	-
			listed bond	cost/ financial assets at fair
					value through other
					comprehensive income
Yango Justice	Investment in	Financial assets at amortised	270,000	207,404	211,845	3.9%	-	8,522
	International Ltd.		listed bond	cost/ financial assets at fair
					value through other
					comprehensive income
Ronshine China	Investment in	Financial assets at amortised	195,000	151,540	156,553	2.9%	-	421
	Holdings Ltd.		listed bond	cost/ financial assets at fair
					value through other
					comprehensive income
Excellence	Investment in	Financial assets at fair value	200,000	156,120	155,319	2.8%	303	-
	Commercial		listed bond		through other comprehensive
	Management Ltd.			income/ financial assets at fair
				value through profit or loss
Jingrui Holdings Ltd.	Investment in	Financial assets at amortised	160,000	124,448	119,266	2.2%	-	-
			listed bond	cost/ financial assets at fair
					value through other
					comprehensive income

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Looking ahead, the investment market will remain volatile. The performance of proprietary investment will be affected by unstable market conditions. The Group will continue to implement strict risk control to minimise the impact of market volatility and will seek potential investment opportunities to diversify its investment portfolio with an aim to maximise value for the shareholders of the Company.

Financial Review

For the six months ended 30 June 2020, the unaudited condensed consolidated revenue of the Group was approximately HK $ 157,030,000 (six months ended 30 June 2019: HK$56,954,000), representing an increase of approximately 176%.

The analysis of the Group's total revenue recognised in the unaudited condensed consolidated statement of profit or loss is as follows:

For the six months ended 30 June 2020 and 2019
		2020	2019		Change
		HK$'000		HK$'000
Interest income	140,051	66,644		110%
Commission and fee income	11,968	(10,115)	N/A
Net investment income	5,011	425		1,079%
Total revenue	157,030	56,954		176%

The Group recorded a gain of approximately HK$67,423,000 for the six months ended 30 June 2020, as compared to a loss of approximately HK$104,360,000 for the six months ended 30 June 2019 ("Corresponding Period"), mainly due to (i) an increase in interest income from the Group's investment holding business; (ii) net gain on investments and (iii) a decrease in provision for impairment of financial assets for the six months ended 30 June 2020 as compared to the Corresponding Period.

The total costs (including staff costs, premises expenses, finance costs, trading costs, expected credit losses allowance and other operating costs) for the six months ended 30 June 2020 was approximately HK$115,701,000 (six months ended 30 June 2019: HK$132,474,000), representing a decrease of approximately 13% which was mainly due to effective cost control measures implemented by the Group in the area of staff costs and premises expenses as well as reduction in expected credit losses allowances on financial assets provided for the period.

The Board does not recommend the payment of interim dividend for the six months ended 30 June 2020 (six months ended 30 June 2019: Nil).

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For the financial position as at six months ended 30 June 2020, total assets of the Group was approximately HK$5,461,111,000 (31 December 2019: HK$5,736,975,000), representing a decrease of approximately 4.81%. Net cash (outflow)/inflow from operating activities, investing activities and financing activities for the period under review were approximately HK$(1,557,928,000), HK$(3,683,000) and HK$(226,322,000) (six months ended 30 June 2019: HK$411,270,000, HK$(19,856,000) and HK$(214,539,000) respectively). The depreciation for property, plant and equipment for the period under review was approximately HK$6,203,000 (six months ended 30 June 2019: HK$2,906,000).

Employee relations

As at 30 June 2020, the Group had 71 employees (as at 30 June 2019: 63 employees).

Total staff costs and related expenses for the period under review were approximately HK$38,810,000 (six months ended 30 June 2019: HK$44,169,000).

The employees are remunerated based on their work performance, professional experience and prevailing industry practices. The remuneration policy and package of the Group's employees are periodically reviewed by the Group's management. In addition, the Group adopts a share option scheme and a share award plan for eligible employees (including Directors) to provide incentives to participants for their contributions and continuing efforts to promote the interests of the Group.

Liquidity and financial resources

As at 30 June 2020, the Group's cash and bank deposits (excluding pledged bank deposits) amounted to approximately HK$315,559,000 (as at 31 December 2019: HK$2,117,233,000). The gearing ratio as at 30 June 2020 (total debts to total equity) was approximately 6.1% (as at 31 December 2019: 6.6%), which indicated that the Group's overall financial position remained strong.

Segment information

The details of segment information are set out in Note 6 to the condensed consolidated financial statements.

Capital structure

There were no changes to the Group's capital structure during the six months ended 30 June 2020.

Material acquisitions and disposals of subsidiaries and associates

Save as disclosed, the Group had no material acquisition and disposal of subsidiaries and associated companies during the six months ended 30 June 2020.

- 22 -

Charges on Group's assets
The analysis of the charge on Group's assets is as follows:
	30 June		31 December
	2020	2019
	HK$'000		HK$'000
Pledged deposits at bank	302	292
Total charges on Group's assets	302	292

Deposits at bank are pledged as security for a corporate card granted to a director of the Group.

Exposure to exchange rate fluctuation and related hedging

The Directors considered that the Group has certain exposures to foreign currency risk as some of its business transactions are denominated in currencies other than the functional currency of respective Group entities such as Renminbi. The Group will monitor its foreign currency exposure closely and will consider hedging significant foreign currency exposure should the need arise.

Contingent liabilities

The Group did not have any significant contingent liabilities as at 30 June 2020 (as at 31 December 2019: Nil).

CORPORATE GOVERNANCE

Compliance with the Code on Corporate Governance Practices of the Listing Rules

The Company's corporate governance practices are based on the principles and code provisions ("Code Provisions") set out in the Corporate Governance Code (the "CG Code") contained in Appendix 14 of the Listing Rules.

Throughout the period under review, the Company has complied with most of the Code Provisions of the CG Code, save for the deviation from Code Provision A.2.1 which is explained below.

According to Code Provision A.2.1, the roles of chairman and chief executive should be separated and should not be performed by the same individual. The division of responsibilities between the chairman and chief executive should be clearly established and set out in writing. Mr. Tomohiko Watanabe acts as both the chairman and the chief executive officer of the Company with effect from 5 March 2019. Although the roles of the chairman and chief executive officer of the Company are taken up by the same individual, such arrangement facilitates the development and execution of the Group's business strategies and enhances efficiency and effectiveness of its operation.

- 23 -

Review of Accounts

Disclosure of financial information in this announcement complies with Appendix 16 of the Listing Rules.

The audit committee of the Company has reviewed the accounting principles and practices adopted by the Group and has discussed with the management the internal controls and financial reporting matters related to the preparation of the unaudited condensed consolidated financial statements for the six months ended 30 June 2020.

The Company's external auditor, PricewaterhouseCoopers has reviewed the interim financial information for the six months ended 30 June 2020 in accordance with Hong Kong Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants.

MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS

The Company has adopted the Model Code as set out in Appendix 10 of the Listing Rules as its own code of conduct regarding Directors' securities transactions. All the Directors of the Board have confirmed, following specific enquiries made by the Company, that they have complied with the required standard as set out in the Model Code throughout the six months ended 30 June 2020.

OTHER INFORMATION

Pre-emptive Rights

There is no provision for pre-emptive rights under the articles of association of the Company which would oblige the Company to offer new shares on a pro-rata basis to existing shareholders.

Purchase, Sale or Redemption of the Company's Listed Securities

During the period under review, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities.

PUBLICATION OF RESULTS ON THE WEBSITES OF THE STOCK EXCHANGE AND THE COMPANY

The results announcement is published on the website of the Hong Kong Exchanges and Clearing Limited (the "HKEx") at www.hkexnews.hk under "Latest Listed Company Information" and on the website of the Company at www.chinavered.com respectively.

The interim report of the Company for the six months ended 30 June 2020 will be despatched to the shareholders and published on the websites of the HKEx and the Company in due course.

- 24 -

CHANGE OF COMPANY WEBSITE ADDRESS

The Board announces that, the Company's website address has been changed from "www.cm- fin.com" to "www.chinavered.com" with immediate effect. All announcements, notices or other documents required to be submitted by the Company for publication on the website of The Stock Exchange of Hong Kong Limited will also be published on this new website address of the Company.

CANCELLATION OF THE STRATEGY EXECUTION COMMITTEE

The Board cancelled its Strategy Execution Committee with effect from 26 August 2020 and its work and duties are immediately performed by the Board.

By Order of the Board

China Vered Financial Holding Corporation Limited

Tomohiko Watanabe

Chairman

Hong Kong, 26 August 2020

As at the date of this announcement, the Board comprises (1) Mr. Tomohiko Watanabe, Mr. Ni Xinguang and Ms. Li Wei as executive directors of the Company; (2) Mr. Zhang Yang as non- executive director of the Company; and (3) Mr. Wang Yongli, Ms. Zhou Hui and Mr Dong Hao as independent non-executive directors of the Company.

- 25 -