Management Report 2018
The Foundation’s activities in 2018 have been a continuation and development of activities and projects, aimed at defining and establishing specific opportunities for Danish companies in Asian markets. The Foundation has supported increased knowledge sharing about Asian themes with relevance to Danish businesses, amongst others through seminars and Round Table Discussions, monthly newsletters, reports, and LinkedIn updates. Asia House has furthermore strengthened its network of contacts and collaborations with relevant actors in Denmark and Asia, through travels in Asia.
The Foundation has, through Asia House, made possible the development of two projects in collaboration with relevant Danish actors and with support from The Danish Industry Foundation.
The first project, Innovation Alliances (Innovation Lab Asia), seeks to improve and enhance cooperation between Danish and Asian innovation ecosystems in 7 countries (India, Japan, Malaysia, Singapore, South Korea, China (Shenzhen) and Taiwan), and aims to provide a comprehensive knowledge-platform for those interested in seizing opportunities in Asia, as well as to establish concrete collaborations between startups, investors and other relevant actors.
The second project, The Indo-Danish SME Accelarator Platform (Nordin) seeks to build bridges between Danish and Indian SMEs and investors with the aim of developing new common solutions within Smart City solutions, fintech, greentech, and foodtech, targeted the Indian market.
The project “Gateway to India’s Smart Cities”, which was also made possible through the support of The Danish Industry Foundation, and builds on a 2015 grant from the EAC Foundation given to the Danish Embassy in India, was finalised in 2018 with the publication of a ”Roadmap to India’s Smart Cities” (PDF).
Income from equity dividends and bond yields amounted to DKK 1.7 million, which reflects the developments on the capital market in 2018. Annual profit was also affected by unrealized capital losses of DKK 8.8 million, realized losses of DKK 0.7 million. and realized capital gains of DKK 0.5 million. on the Fund’s securities.
Asia House’s income from events and membership fees, as well as rental income from East Asiatic House in 2018, was DKK 2.0 million. Operating expenses for the year amounted to DKK 1.9 million, while total wage costs were DKK 3.3 million.
The result for the Foundation in 2018, after depreciation of buildings and fixtures of DKK 0.8 million, amounts to a loss of DKK 11.3 million. The Foundation’s equity at the end of the year amounts to DKK 97.5 million. against DKK 110 million at the end of 2017.
The Board of Directors considers the year’s return on the Foundation’s portfolio of bonds satisfactory, whereas the negative price development of the Foundation’s three Danish shares – which have been regarded as fixed assets for many years – has resulted in unrealized capital losses of DKK 7.4 million.
In connection with the City of Copenhagen’s development of the land area around Asia House, the Foundation finally acquired the land on which Asia House was built in 2018, after 120 years of renting. In addition, the Foundation has acquired the neighboring East Asiatic House, Indiakaj 20 as well as the land. The property in No. 20 is currently rented out to three tenants, Innovation House China-Denmark, Danish-Chinese Business Forum, and Santa Fé Group.
The Foundation follows the recommendations for proper foundation governance, and reference is made to the completed form for statutory report on foundation governance, cf. section 77a of the Danish Accounting Act, which is available on the Foundation’s website (www.eacfoundation.dk) (in Danish).