Management Report 2020
The purpose of the EAC Foundation is to establish networks and relationships with Denmark and Asia, creating dialogue and cooperation between the two regions. The Corona pandemic has had a major negative impact on the Foundation’s and Asia House’s opportunities for international cooperation in 2020. Asia House’s physical premises were completely closed from 11 March – 8 June, Covid-19 restrictions have prohibited meetings of groups over ten people since 23 October, and since 16 December, the building has been closed to external meetings. The Foundation’s digital platforms have been expanded to increasingly accommodate activities including Asia House project activities, which have been reorganised to allow for virtual meetings to replace travel activities such as physical visits to Asia. Much of the information that Asia House regularly shares has been disseminated during this period through reports and newsletters.
The Foundation collaborates with a wide range of actors in Denmark and Asia, and its secretariat is the lead on a number of projects for which external support is provided by the Danish Industry Foundation and the Nordic Innovation Fund. During periods which were unhindered by corona restrictions, Asia House was the setting for meetings, seminars and events, some of which were fully funded by the EAC Foundation and others which were held by associations and federations with support from the EAC Foundation. Asia House’s partners also used the meeting facilities, and the premises were rented out to external customers. The foundation’s other property, East Asiatic House, Indiakaj 20, was pr. 1 May 2020, leased for a ten-year period to the owners behind the innovative start-up company Freshland, which uses the building as its headquarters.
The Foundation’s annual profit amounts to a deficit of DKK 3.2 million, and the Foundation’s equity amounts to DKK 96.3 million as of 31 December 2020. The annual results for 2020 reflect the effect of the development of the highly volatile capital market under the influence of numerous uncertainties of the COVID-19 pandemic. The results include the following:
- Unrealised net gains on shares and bonds of the Foundation’s assets, which equal the total amount of DKK 2.8 million as of. 31 December 2020;
- Realised net losses on shares and bonds of DKK 3.7 million;
- Net interest income on bonds, bank assets and mortgages of DKK 1.7 million.
Asia House’s revenue from project activities, events and membership fees amounted to a total of DKK 1.3 million, a small increase of DKK 0.2 million from 2019. Annual operating expenses amounted to DKK 1.6 million, while the total wage expense of 3.4 million was on a par with the previous year. Considering the impact of the pandemic in 2020 on the capital markets and the Foundation’s opportunity for activities, the Board of Directors considers the result for the year to be satisfactory.
Events after the end of the financial year
No events have been identified after the end of the financial year that affect the result, equity or balance sheet for the financial year which ended on 31 December 2020.
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).