Management Report 2019
The Foundation’s activities in 2019 have been a continuation of activities and projects aimed at defining and establishing specific opportunities for Danish companies in the Asian markets. The Foundation has supported increased dissemination of knowledge on Asian themes with relevance to the Danish business community, e.g. by holding seminars and roundtable discussions, sending out monthly newsletters, preparing reports, and updating via LinkedIn. Furthermore, Asia House has strengthened its network of contacts and cooperation with relevant players in Denmark and Asia, including the Danish chambers of commerce in Asia.
The Foundation has, through Asia House, made possible the development of projects in collaboration with relevant Danish actors and with support from The Danish Industry Foundation, and, more recently, the Nordic Innovation Fund. Innovation Lab Asia, one of the Asia House projects, mapped innovation environments in seven Asian hubs – Japan, South Korea, Malaysia, Singapore, India, China (Shenzhen and Taiwan) – to strengthen the growth conditions for Danish startups through alliances with Asian innovation environments, which attracts an increasing share of global investment and talent pool. Eight reports were published in 2019 within the framework of the project. Another project, The Indo-Danish SME Platform (NORDIN), aims to build a bridge between Danish and Indian SMEs and investors to develop new joint solutions in intelligent urban solutions, fintech, greentech and foodtech, targeting the Indian market .
In 2019, more than 150 meetings, seminars and events, some of which were fully funded by the EAC Foundation, were held in Asia House, and other events were hosted by associations and organizations with support from the EAC Foundation. Asian Embassies in Denmark and Asia House’s partners used the meeting facilities as well, and the premises were rented out to external customers.
Income from equity dividends and bond yields amounted to DKK 1.9 million, which reflects the development of the capital market in 2019. In addition, the Foundation’s assets had an unrealized capital gain of DKK 4.4 million.
Asia House’s income from events and membership fees as well as rental income from East Asiatic House in 2019 was DKK 1.6 million. Operating expenses for the year amounted to DKK 3.7 million, while the total wage costs were DKK 3.4 million.
The Foundation’s equity amounts to DKK 98.8 million at the end of 2019, which after revaluation of land and buildings at fair value is a total increase of DKK 1.3 million compared with equity of DKK 97.5 million at the end of 2018. The result of the Foundation’s this year, after the depreciation of buildings and fixtures of DKK 0.7 million, amounts to a total loss of DKK 3.2 million.
The Foundation has incurred expenses of DKK 1.0 million to investigate the possibilities of converting one of the Foundation’s properties into a student dormitory, but deemed it unsuitable, and the property will continue to be sublet as office space.
In light of the Board of Directors’ expectations for 2019, the Board of Directors considers the result for the year to be satisfactory.
Events after the end of the financial year
Since the turn of the year, the COVID-19 pandemic has affected large parts of the world and our society.
The effect of the virus outbreak is considered a non-regulatory subsequent event and thus does not affect the result, equity or balance sheet for the financial year ended 31 December 2019.
No events have been identified after the end of the financial year that affect the result, equity or balance sheet for the financial year ended 31 December 2019.
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).