Financial Performance - In 2022, the Group achieved significant improvement in revenue and operating indicators compared to the previous year, with all profit units meeting their strategic targets[13]. - Revenue from contracts with customers increased to HK$964,246,000 in 2022, up from HK$756,123,000 in 2021, representing a growth of approximately 27.5%[36]. - Operating profit improved to HK$4,210,000 in 2022, compared to an operating loss of HK$122,537,000 in 2021, marking a significant turnaround[36]. - The basic loss per share decreased to (1.24) cents in 2022 from (6.81) cents in 2021, indicating an improvement in financial performance[38]. - Total loss for the year was HK$26,250,000, a reduction from HK$157,179,000 in the previous year, reflecting a substantial decrease in losses[37]. - The Group's loss for the year reduced substantially from HK$157,179,000 in 2021 to HK$26,250,000 in 2022, primarily due to improved operating results in the security and infrastructure segments[49]. - The Group reported a consolidated revenue of HK$964,246,000 for the year ended December 31, 2022, representing an increase of 28% from HK$756,123,000 in 2021[46]. - The security, insurance, and infrastructure business segment generated revenue of HK$527,518,000, up from HK$236,148,000 in 2021, marking a significant growth[56]. - The security segment's revenue increased by 137%, from HK$178,616,000 in 2021 to HK$423,657,000 in 2022, contributing approximately 44% of the Group's total revenue[51]. - The insurance segment recorded revenue of HK$527,518,000 in 2022, up from HK$236,148,000 in 2021, with an operating profit of HK$27,164,000 compared to an operating loss of HK$22,553,000 in the previous year[60]. Business Segments - The security business revenue increased, and its share in the Group's business segment further improved, with successful completion of ISO18788:2015 certification[14]. - The insurance business, represented by Global Pioneer Assurance S.A., made significant breakthroughs in investment income contributions[15]. - The logistics business, led by Frontier Logistics (Shanghai) Company Limited, focused on regional cooperation to enhance synergetic development[15]. - The aviation and logistics business segment reported a decrease in revenue of approximately HK$122,925,000, largely due to the shutdown of Transit Freight Forwarding (Pty) Ltd in South Africa[57]. - SH Logistics turned a loss of HK$10,743,000 in 2021 into a profit of HK$2,219,000 in 2022, aided by increased logistics services for infrastructure projects in Africa and Southeast Asia[63]. - The healthcare segment generated total revenue of HK$42,831,000 in 2022, significantly up from HK$3,891,000 in 2021, with an operating profit of HK$7,511,000 compared to HK$138,000 in the previous year[69]. Strategic Focus and Development - The Group's strategic focus is on comprehensive and diversified development in logistics, insurance, and aviation, with security as the core[14]. - The Group is prepared to seize development opportunities in key countries and major projects despite a complex and volatile business environment[19]. - The group plans to leverage its accumulated professional knowledge and brand potential to achieve significant breakthroughs in 2023[34]. - The group has emphasized sustainable development as a strategic target, aiming to create long-term value for stakeholders[29]. - The Group aims to achieve close to breakeven as soon as possible amidst high operational costs due to rising fuel prices and inflation in overseas markets[77]. - The logistics segment is expected to operate close to breakeven or profit-making starting from 2023 after liquidating a loss-making arm in South Africa[88]. Cost Management and Financial Health - Employee benefit expenses rose to HK$347,152,000 in 2022, compared to HK$242,431,000 in 2021, an increase of approximately 43.3%[36]. - The Group implemented further cost-cutting measures in 2022, which contributed to the reduction in overall operating costs[49]. - Cash and cash equivalents decreased by HK$80,641,000, primarily due to net cash used in operating activities of HK$20,460,000 and repayment of lease liabilities of HK$25,188,000[41]. - The Group's current ratio decreased from 2.00 in 2021 to 1.58 in 2022, indicating a decline in short-term liquidity[46]. - The price to book ratio improved from 3.78 in 2021 to 2.06 in 2022, reflecting a better valuation of the company's equity[46]. - The Group's available cash and cash equivalents decreased to HK$186,790,000 in 2022 from HK$267,431,000 in 2021[98]. - The gearing ratio as of December 31, 2022, was approximately 17.5%, up from 16.6% in 2021[99]. Corporate Governance - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2022[142]. - The Board of Directors consists of 12 members, including 3 executive directors and 5 non-executive directors[143]. - The Chairman and the Chief Executive Officer roles are separate, ensuring proper governance and oversight[144]. - The Board has established four committees: Audit Committee, Nomination Committee, Remuneration Committee, and Risk Committee[144]. - Independent non-executive directors are required to confirm their independence annually, and all have met the independence requirements[150]. - The Company provides ongoing training for directors to ensure they are updated on business developments and regulatory changes[151]. - The Group is committed to accountability, transparency, and protecting shareholders' interests as part of its corporate governance practices[141]. Risk Management and Future Outlook - The geopolitical tensions and strong US dollar are expected to create uncertainties in 2023, affecting capital spending and increasing funding costs[78]. - The Group is closely monitoring currency exchange risks in various regions, including KES, ZAR, and RMB, and will consider hedging if necessary[114][116][120]. - The Group has not utilized any financial instruments for hedging purposes during the year ended 31 December 2022 due to high costs[114][120]. - The business rescue proceedings of TFF were discontinued, and the application for liquidation was approved by the Court in January 2023[135]. - The Group has filed a claim exceeding €10,000,000 (approximately HKD 83,300,000) against the claimant for breach of purchase and repayment agreements[137]. Employee and Community Engagement - The group has actively engaged in community support during the pandemic, showcasing its commitment to social responsibility[31]. - The total number of employees increased to 2,102 as of December 31, 2022, from 1,837 in 2021, reflecting expansion in security businesses[96]. - A total of 23,400,000 share options were granted under the share option scheme during the year ended December 31, 2022, to incentivize eligible directors and employees[91]. Diversity and Inclusion - The Board currently comprises eleven male and one female directors, reflecting a need for improved gender diversity[194]. - The Company has adopted a Board Diversity Policy that considers various aspects such as gender, age, and professional experience to achieve diversity[193]. - The Nomination Committee recognizes the importance of gender diversity at the Board level and aims for continuous improvement[198]. - The company maintained an adequate ratio of women to men in the workplace during the year[199].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 FRONTIER SERVICES GROUP LIMITED 先豐服務集團有限公司 * （於百慕達註冊成立之有限公司） 網址：www.fsgroup.com www.irasia.com/listco/hk/frontier （股份代號：00500） 末期業績公告 截至二零二二年十二月三十一日止年度 Frontier Services Group Limited先豐服務集團有限公司*（「本公司」）董事會（「董事 會」）公佈本公司及其附屬公司（「本集團」）截至二零二二年十二月三十一日止年度 之末期業績，連同截至二零二一年十二月三十一日止年度之比較數字。本集團之末 期綜合業績已經本公司審核委員會（「審核委員會」）審閱。 ...

Revenue Performance - Revenue from contracts with customers increased to HK$503,839,000, up 62.2% from HK$310,460,000 in the same period of 2021[12] - The Group reported a 62% increase in revenue from HK$310,460,000 in 2021 to HK$503,839,000 in 2022, primarily due to improved performance in security, insurance, and infrastructure businesses[16] - Revenue from contracts with external customers increased to HK$503,839,000 for the six-month period ended June 30, 2022, compared to HK$310,460,000 in 2021, representing a growth of 62.2%[137] - Revenue from contracts with customers totaled HK$503,839,000, with the Aviation and Logistics Business contributing HK$213,855,000, the Security, Insurance and Infrastructure Business contributing HK$255,079,000, and the Financial Market Information Business contributing HK$7,087,000[130] Operating Loss and Profitability - Operating loss for the six-month period was HK$34,751,000, an improvement from a loss of HK$44,006,000 in 2021[12] - The operating loss decreased significantly from HK$44,006,000 in 2021 to HK$34,751,000 in 2022[16] - The Group reported an operating loss of HK$34,751,000, with the Aviation and Logistics Business showing a loss of HK$24,889,000 and the Security, Insurance and Infrastructure Business generating an operating profit of HK$7,985,000[130] - Loss for the period narrowed to HK$54,765,000 compared to HK$57,368,000 in the previous year[12] Employee Expenses - Employee benefit expenses rose to HK$177,208,000, up 55.8% from HK$113,743,000 in 2021[12] - Employee benefit expenses for the six-month period were HK$177,208,000, up from HK$113,743,000, marking a 55.8% increase[92] - Employee benefit expenses rose due to the increase in the workforce, particularly full-time security officers, following the acquisition of security companies in Hong Kong[51] Business Segments Performance - Aviation and logistics business revenue was HK$213,855,000, down from HK$236,066,000 in 2021[15] - Security, insurance, and infrastructure business revenue was HK$255,079,000, significantly up from HK$63,735,000 in the previous year[15] - The security business generated total revenue of HK$182,609,000, representing a 187% growth compared to HK$63,568,000 in 2021, with a net profit of HK$1,576,000, an improvement from a net loss of HK$18,327,000 in 2021[19] - The insurance business reported a net profit of HK$650,000, up from HK$15,000 in 2021, mainly due to contributions from an associated company in Africa[20] - The infrastructure project in Laos generated revenue of HK$71,924,000, with a profit contribution of HK$12,872,000, compared to a net loss of HK$7,349,000 in 2021[21] - The aviation business's net profit decreased from HK$13,710,000 in 2021 to HK$6,275,000 in 2022 due to reduced demand for air ambulance services[26] - The logistics segment reported a total revenue of HK$167,124,000, down from HK$171,921,000 in 2021, with net losses increasing from HK$18,163,000 to HK$43,459,000[32] - SH Logistics experienced a 63% revenue increase from HK$48,983,000 in 2021 to HK$79,966,000 in 2022, while reducing its loss by 52% to HK$1,169,000[31] - The healthcare business generated total revenue of HK$23,837,000 and a net profit of HK$7,910,000 during the Current Period[33] Financial Position - As of June 30, 2022, the Group recorded total assets of HK$1,137,135,000, a decrease from HK$1,173,473,000 as of December 31, 2021[54] - The Group's total liabilities amounted to HK$690,576,000 as of June 30, 2022, compared to HK$668,323,000 as of December 31, 2021[54] - The net asset value per share (excluding non-controlling interests) as of June 30, 2022, was HK$0.14, down from HK$0.16 as of December 31, 2021[54] - The Group's available cash and bank balances were HK$213,145,000 as of June 30, 2022, a decrease from HK$267,431,000 as of December 31, 2021[54] - The gearing ratio as of June 30, 2022, was approximately 16.8%, slightly up from 16.6% as of December 31, 2021[57] Cost Management and Future Outlook - The Group aims to achieve close to breakeven in the logistics segment by implementing further cost-cutting measures starting next year[42] - The Group is committed to implementing cost-saving measures to enhance competitiveness and seize business opportunities despite market challenges[43] - The macroeconomic outlook for the second half of 2022 remains uncertain due to geopolitical tensions and the pandemic's ongoing impact[39] - The Group is implementing cost-saving measures to enhance market competitiveness amid ongoing geopolitical uncertainties[46] Capital and Financing Activities - The Group completed the issuance of convertible bonds totaling HK$210,000,000, convertible into 210,000,000 shares at a price of HK$1.00 per share[63] - As of June 30, 2022, HK$150,000,000 was utilized for the settlement of acquisition costs, and HK$17,000,000 for general working capital from the convertible bonds[64] - The Group's cash and bank balances are primarily held in HK$, RMB, and US$, with surplus cash placed in term deposits based on funding requirements[65] - The Group has adopted a conservative treasury policy with strict cash management controls[65] Claims and Contingent Liabilities - The Group has received claims totaling approximately US$5.8 million (equivalent to approximately HK$45.5 million) from Aircraft Engine Lease Finance Inc. against its subsidiary, Frontier Services Limited[83] - The Board believes the allegations in the claims are untrue and will vigorously contest them, with potential counterclaims against AELF for breach of contract[84] - There are no material contingent liabilities recognized by the Group as of June 30, 2022, aside from the claims mentioned[85] Shareholder Information - The Group has granted 23,400,000 share options under its share option scheme during the six-month period ended June 30, 2022[45] - The Group's dividend policy allows for distribution to shareholders, subject to the Board's discretion and shareholder approval[66] - No interim dividend was recommended for the six-month period ended June 30, 2022, consistent with the previous year[148] Accounting and Reporting - The Group's interim financial statements for the six-month period ended 30 June 2022 have been prepared in accordance with HKAS 34 "Interim Financial Reporting" and should be read in conjunction with the audited financial statements for the year ended 31 December 2021[114] - The financial statements are presented in HK$ and all values are rounded to the nearest thousand (HK$'000) unless otherwise stated[112] - The Group has adopted several amended HKFRSs effective from 1 January 2022, but these do not have any material impact on the Group's financial statements for the Current Period[118] - The Group's accounting policies are consistent with those used in the preparation of the 2021 Annual Financial Statements[114]

Financial Performance - Revenue from contracts with customers increased to HK$756,123,000 in 2021, up from HK$605,246,000 in 2020, representing a growth of approximately 25%[32] - The operating loss decreased to HK$122,537,000 in 2021 from HK$211,123,000 in 2020, showing an improvement of about 42%[32] - Basic loss per share improved to (6.81) cents in 2021 from (9.72) cents in 2020, indicating a reduction in loss per share[35] - The Group's loss for the year was reduced by HK$71,407,000, from HK$228,586,000 in 2020 to HK$157,179,000 in 2021, mainly due to improved operating results in aviation, security, and infrastructure businesses[43] - Other income and gains increased to HK$8,335,000 in 2021 from HK$4,263,000 in 2020, indicating improved financial performance in ancillary activities[32] - Revenue from the security, insurance, and infrastructure business segment increased significantly to HK$236,148,000 in 2021, up from HK$80,120,000 in 2020[60] - For the year ended December 31, 2021, the Group recorded revenue of HK$236,148,000 in its infrastructure segment, a significant increase from HK$80,120,000 in 2020, while operating loss improved to HK$22,553,000 from HK$79,441,000[63] Operational Adjustments and Strategies - In 2021, the Group achieved significant operational adjustments, leading to a substantial decrease in overall losses, with business objectives nearly met[13] - The optimization of business presence and workforce structure in 2021 led to reduced overall operating costs and improved efficiency[20] - The Group's strategic focus on major projects and resource allocation contributed to increased overall revenue and long-term business sustainability[20] - The management emphasized the importance of leveraging accumulated brand and customer advantages to drive project success[13] - The Group streamlined its workforce and controlled costs effectively, which played a crucial role in minimizing losses[20] - The management's proactive response to the COVID-19 pandemic included adjusting operational strategies to mitigate impacts on businesses in Africa and Asia[13] Market and Business Development - The Group focused on high-end security, logistics, and insurance services, successfully aligning its operations with the political and economic conditions of key countries, resulting in business growth despite a global economic downturn[16] - The Group obtained security licenses in over ten major countries, enhancing its localized operations along the "Belt and Road" initiative[15] - The Group's integrated development approach has successfully combined security services with logistics, insurance, and air rescue operations[16] - The Group's security brand has gained recognition among Chinese enterprises operating overseas, enhancing its market position[15] - The Group's logistics base in South Africa, Transit Freight Forwarding (Pty) Ltd, reported a gross loss due to under-utilization and impairment provisions totaling HK$23,170,000[61] - The Group's aviation segment is expected to generate stable income, leveraging strong associations with the United Nations and other global organizations[77] Healthcare and Innovation - The Group's healthcare services will provide innovative intelligent medical solutions following the acquisition of DeWe Security Limited, expanding its presence in the healthcare field[24] - The Group's management believes that the demand for immediate medical support will continue to grow, leveraging synergies from recent acquisitions in the healthcare sector[81] Financial Position and Liquidity - The current ratio decreased to 2.00 in 2021 from 2.61 in 2020, indicating a decline in short-term liquidity[39] - Total liabilities-to-total assets ratio increased to 0.57 in 2021 from 0.33 in 2020, reflecting a higher level of leverage[39] - Cash and bank balances decreased by HK$51,250,000, primarily due to net cash used in operating activities of HK$22,324,000 and investing activities of HK$192,669,000[40] - The available cash and bank balances were HK$267,431,000 as of December 31, 2021, compared to HK$318,681,000 in 2020, with total borrowings increasing to HK$194,279,000 from HK$18,443,000[87] - The gearing ratio as of December 31, 2021, was approximately 16.6%, significantly up from 2.0% in 2020[90] Governance and Management - The Group's management team has prioritized sustainability, focusing on climate change, occupational health and safety, and community investment as key governance issues[27] - The Group's Board of Directors comprises 12 members, including 3 executive directors and 5 non-executive directors[129] - The Audit Committee comprises 3 independent non-executive directors, with the chairman being a chartered accountant[142] - The Company has a corporate governance policy that includes regular assessments of the independence of non-executive directors[135] - The Company emphasizes the importance of corporate governance in its operations[200] - The Company remains committed to upholding high standards of corporate governance[200] Future Outlook - The Group aims to optimize management and business structure in 2022 to generate greater value for shareholders despite challenges[29] - Management remains confident in achieving vigorous growth in revenue and operating performance despite ongoing uncertainties related to the pandemic[79] - The Group anticipates stronger growth in revenue and operational performance in the near future despite facing uncertainties[81] - The Group plans to continue expanding its security and infrastructure footprints in Laos, capitalizing on recent successes in the region[78] - The Group anticipates further consolidation of resources to penetrate new markets as overseas projects resume[76] Human Resources - The total number of employees increased to 1,837 as of December 31, 2021, up from 1,125 in 2020, indicating growth in human resources[85] - The Group's new management team is focused on cost-saving measures to strengthen the organization during challenging times[83]

Financial Performance - The unaudited consolidated financial results for the six-month period ended June 30, 2021, were presented, comparing with the corresponding period of 2020[10]. - The Group's overall performance showed significant changes, with specific financial metrics to be detailed in the financial statements[12]. - The financial statements were reviewed by the audit committee members, ensuring accuracy and compliance[11]. - The Group's revenue for the six-month period ended 30 June 2021 was HK$310,460,000, representing a 16.7% increase from HK$265,928,000 in the same period of 2020[16]. - The Group's overall loss for the period was HK$57,368,000, compared to a loss of HK$130,128,000 in the same period of 2020[16]. - The Group's operating loss decreased significantly from HK$41,960,000 in 2020 to HK$340,000 in 2021, indicating improved performance[20]. - The Group reported an operating loss of HK$54,221,000 for the current period, with the Security, Insurance and Infrastructure Business experiencing the largest loss of HK$29,409,000[100]. - The Group's loss before income tax was HK$58,272,000, with an income tax credit of HK$904,000 reducing the overall loss for the current period to HK$57,368,000[100]. - The company reported a loss of HK$59,760,000 for the current period, compared to a profit in the previous period[73]. - Total comprehensive loss for the period was HK$57,457,000, down from HK$138,899,000 in 2020, indicating a substantial improvement[64]. Revenue Segmentation - The aviation and logistics business segment reported a revenue increase of HK$10,786,000, with logistics segment revenue up by HK$13,941,000, while the aviation segment revenue decreased by HK$3,155,000[16]. - Phoenix Aviation Limited's revenue surged from HK$26,459,000 in 2020 to HK$64,145,000 in 2021, marking a significant increase of HK$37,686,000[20]. - The revenue from the security, insurance, and infrastructure business segment increased by HK$33,724,000 during the current period[17]. - Transit Freight Forwarding (Pty) Ltd accounted for 34% of the Group's revenue, generating HK$104,724,000, a 2% increase from HK$102,803,000 in 2020[20]. - Frontier Logistics (Shanghai) Co., Ltd reported a revenue of HK$48,983,000, reflecting a 22% increase from HK$40,273,000 in the previous year[20]. - Revenue from contracts with customers for the six-month period ended June 30, 2021, was HK$310,460,000, an increase of 16.7% compared to HK$265,928,000 in 2020[62]. Assets and Liabilities - As of June 30, 2021, the Group's total assets were HK$889,312,000, a decrease from HK$939,918,000 as of December 31, 2020[43]. - The Group's liabilities increased to HK$320,125,000 as of June 30, 2021, compared to HK$313,234,000 as of December 31, 2020[43]. - The Group's net asset value per share decreased to HK$0.19 as of June 30, 2021, down from HK$0.22 as of December 31, 2020[43]. - Total assets as of June 30, 2021, amounted to HK$889,312,000, while total liabilities were HK$320,125,000, indicating a significant asset base relative to liabilities[100]. - Total assets less current liabilities decreased to HK$645,084,000 from HK$710,828,000, representing a decline of approximately 9.2%[68]. - Non-current liabilities totaled HK$75,897,000, down from HK$84,144,000, indicating a reduction of about 9.4%[68]. Cash Flow and Financing - Available cash and bank balances as of June 30, 2021, were HK$245,694,000, down from HK$318,681,000 as of December 31, 2020[43]. - The Group maintained a surplus net cash position of HK$126,104,000 as of June 30, 2021, compared to HK$194,218,000 as of December 31, 2020[43]. - The gearing ratio as of June 30, 2021, was approximately 13.4%, a slight increase from 13.2% as of December 31, 2020[43]. - The company raised net proceeds of HK$830,567,000 through a share subscription in May 2018[46]. - As of June 30, 2021, actual use of net proceeds was HK$794,569,000, leaving unutilized net proceeds of HK$35,998,000[47]. - The company incurred professional and consultancy fees of HK$5,825,000, which increased from HK$3,479,000 in the previous year, highlighting rising operational costs[116]. Future Outlook and Strategy - The Group expects continued improvement in operating results in the second half of the year due to securing more business with sizable companies[20]. - The Group acknowledges considerable uncertainty in the near-term outlook but remains confident in achieving vigorous growth in revenue and operating performance[35]. - The Group expects to expand its influence in the security industry by acquiring more large-scale security projects overseas, particularly in the mining and oil and gas sectors[37]. - The Group anticipates stronger growth in revenue and operational performance in the near future despite facing uncertainties[38]. - The Group plans to implement cost-cutting measures to strengthen its position during challenging times[36]. Shareholder Information - The dividend policy allows for distribution to shareholders, subject to the Board's discretion and shareholder approval[51][53]. - Factors considered for dividend payments include financial performance, shareholders' interests, and future expansion plans[55]. - The Group does not recommend the payment of any interim dividend for the six-month period ended June 30, 2021, consistent with the previous year where no dividend was declared[123]. Investment and Capital Expenditure - The Group is actively seeking new investment opportunities to broaden its revenue base and enhance long-term shareholder value[60]. - The Group has a capital expenditure commitment for investment in a fund of US$24,712,000 (equivalent to HK$191,963,000) as of 30 June 2021, slightly up from US$24,712,000 (equivalent to HK$191,614,000) as of 31 December 2020[140]. - The Group had no significant financial commitments as of June 30, 2021, consistent with the previous period[147]. Employee and Operational Costs - Employee benefit expenses decreased to HK$113,743,000 in the first half of 2021 from HK$122,627,000 in the same period of 2020, a reduction of 7.2%[62]. - The Group's short-term employee benefits for the six-month period ended June 30, 2021, were HK$8,463,000, a decrease from HK$11,161,000 in the same period of 2020[155]. Currency and Exchange Rates - The exchange rates of the Kenyan Shilling and South African Rand against HK$ increased by 0.8% and 0.7% respectively during the current period ended June 30, 2021[58]. - The exchange rate of US$ against HK$ is considered relatively stable, resulting in minimal currency exchange risk for operations in Hong Kong[58]. - The Group closely monitors currency exchange risks for operations in Africa, South East Asia, and Mainland China[58]. Share Options and Ownership - The company adopted a share option scheme on March 28, 2012, aimed at recognizing contributions from eligible participants and retaining existing employees[185]. - During the six-month period ended 30 June 2021, 71,679,276 share options lapsed compared to 2,800,000 in the same period of 2020[192]. - As of 30 June 2021, there were no outstanding share options, down from 73,239,276 as of 30 June 2020[192].

Business Performance and Financial Results - In 2020, the Group generated revenue from contracts with customers amounting to HK$605,246,000[38]. - The Group incurred a loss for the year of HK$228,586,000, with a loss before income tax of HK$238,077,000[38]. - The Group reported a consolidated revenue of HK$605,246,000 for the year ended 31 December 2020, representing a decrease of 17% compared to HK$725,920,000 in 2019[40]. - The Group incurred a loss of HK$228,586,000 in 2020, an improvement from a loss of HK$356,747,000 in 2019, primarily due to reduced impairment provisions[40]. - Total assets decreased by HK$283,505,000 to HK$939,918,000, while cash and bank balances fell by HK$146,848,000 to HK$318,681,000, mainly due to net cash used in operating activities of HK$159,107,000[41]. - The aviation and logistics business segment generated revenue of HK$510,443,000, while the security, insurance, and infrastructure business contributed HK$80,120,000[46]. - TFF, a major revenue contributor, saw its revenue drop by 43% to HK$202,981,000, representing approximately 34% of total revenue[48]. - The Group's liabilities as of December 31, 2020, were HK$313,234,000, down from HK$379,810,000 in 2019[73]. - The net asset value per share (excluding non-controlling interests) decreased to HK$0.22 in 2020 from HK$0.31 in 2019[73]. - The total number of employees increased to 1,125 as of December 31, 2020, compared to 625 in 2019[72]. Impact of COVID-19 - Due to the COVID-19 pandemic, the progress of business expansion in some overseas markets was slow, with employees infected in countries with major outbreaks[14]. - The Group completed over 100 rescue tasks during the pandemic, focusing on aviation logistics and air ambulance services[17]. - The Group's operations continued as usual despite challenges, demonstrating resilience from employees across all regions[14]. - The impact of the COVID-19 outbreak has disrupted the Group's business development activities[85]. - The rollout of COVID-19 vaccines is expected to drive a rebound in global economic activity, although the timeline for recovery remains uncertain[60]. - The Group remains cautious for 2021 amidst ongoing uncertainties related to COVID-19[67]. Strategic Developments and Future Plans - The Group focused on the development of key markets and exploration of major projects in 2020, contrasting with the business expansion in 2019[14]. - The Group aims to achieve synergistic development by integrating security, logistics, insurance, and engineering resources in the post-pandemic era[30]. - The Group will concentrate resources on key regions and major projects to create greater value for shareholders in 2021[30]. - The Group aims to develop businesses along economic corridors, anticipating more new business opportunities in the near future[68]. - Cost-saving measures are being implemented while pursuing new business wins to strengthen the Group during challenging times[67]. Operational Highlights - The Group established an associate company in the Democratic Republic of the Congo to provide property and casualty insurance services, overcoming pandemic-related challenges[22]. - The logistics business expanded through the construction of five major logistics channels, with a focus on the westbound logistics channel from Southern Africa[17]. - The Group's infrastructure segment continues to promote significant projects in Southeast Asia, Africa, and the Middle East[23]. - The Group signed a strategic agreement with Taiping Insurance Group to enhance its overseas insurance business and create integrated service solutions[22]. - The Group secured a two-year engineering, procurement, and construction contract with a government body in Laos in Q4 2020[66]. - A security servicing contract was obtained with a Chinese and Nigerian joint venture in Nigeria, also lasting at least two years[66]. Cost Management and Financial Health - Management measures were implemented to increase income, reduce costs, and stop losses, resulting in the closure of two poorly performing subsidiaries[24]. - The Group implemented cost-cutting measures throughout the year to better control operating costs[40]. - The current ratio improved to 2.61, and the total liabilities-to-total assets ratio stood at 0.33[41]. - The Group maintained a surplus net cash position of HK$194,218,000 as of December 31, 2020, compared to HK$349,353,000 in 2019[79]. - The Group's total borrowings primarily consisted of lease liabilities for aircraft amounting to HK$34,072,000 and for properties, equipment, and trailers amounting to HK$71,948,000[79]. Governance and Compliance - The Group's Board of Directors comprises 10 members, including 3 executive directors and 4 independent non-executive directors[106]. - The roles of the Chairman and the Chief Executive Officer are separate, ensuring proper governance[106]. - The Company has complied with the code provisions of the Corporate Governance Code throughout the year ended December 31, 2020[105]. - The Audit Committee consists of 3 independent non-executive directors, ensuring oversight of the independent auditor and compliance with statutory requirements[119]. - The Company has established a diversity policy for the Board, considering factors such as gender, age, and professional experience[121]. Environmental, Social, and Governance (ESG) Initiatives - The Group is committed to sustainability, focusing on reducing emissions, improving energy efficiency, and minimizing environmental impacts[199]. - The operational teams in the logistics business are maximizing vehicle utilization to save fuel consumption[199]. - The Group plans to acquire eco-friendly vehicles to further minimize energy resource usage[199]. - The Group strictly adheres to local environmental protection regulations, including the National Environmental Management Act and Climate Change Act[199]. - Key ESG issues prioritized by the Group include environmental protection, employment practices, and community investment[199].

Financial Performance - The Group reported unaudited consolidated financial results for the six-month period ended June 30, 2020, with comparative amounts for the corresponding period of 2019[10]. - Revenue for the Current Period was significantly impacted, reflecting a decrease compared to the previous year, with specific figures to be detailed in the financial statements[10]. - The Group's revenue for the six-month period ended 30 June 2020 was HK$265,928,000, a decrease of 23.3% compared to HK$346,690,000 for the same period in 2019[16]. - Revenue from contracts with customers decreased to HK$265,928,000, down 23.3% from HK$346,690,000 in 2019[44]. - The Group incurred a loss for the period of HK$130,128,000, slightly improved from a loss of HK$132,931,000 in the previous year[16]. - The Group's operating loss was HK$132,007,000, with interest income of HK$2,860,000 and finance costs of HK$6,002,000[16]. - Total comprehensive loss for the period was HK$138,899,000, compared to HK$136,561,000 in the previous year[46]. - The loss before income tax for the current period was HK$136,365,000, with an income tax credit of HK$6,237,000, resulting in a net loss of HK$130,128,000[83]. - For the six-month period ended June 30, 2020, the company reported a loss attributable to equity holders of HK$130,221,000, compared to a loss of HK$132,918,000 in the same period of 2019, indicating a slight improvement[113]. Revenue Breakdown - Revenue from the aviation and logistics business segment decreased by HK$103,829,000, primarily due to a drop in logistics revenue from HK$255,466,000 in 2019 to HK$157,979,000 in 2020[17]. - The Group's security, insurance, and infrastructure business reported significant improvement, with revenue rising to HK$33,452,000 from HK$9,556,000 in the previous period[16]. - Transit Freight Forwarding (Pty) Ltd's revenue declined by 36% to HK$102,803,000, impacted by lockdowns affecting business volume[19]. - Frontier Logistics (Shanghai) Co., Ltd experienced a 52% revenue decline to HK$40,273,000, with operations close to breakeven during the period[19]. - Maleth Aero Limited reported a 30% revenue decline to HK$35,337,000, mainly due to reduced aircraft availability from travel restrictions[19]. - Phoenix Aviation Limited saw an 85% increase in revenue to HK$26,459,000, attributed to securing a fixed income contract despite COVID-19 restrictions[19]. - The Aviation and Logistics Business generated revenue of HK$225,280,000, while the Security, Insurance and Infrastructure Business contributed HK$33,452,000[83]. - The financial market information business reported revenue of HK$7,196,000, contributing to the overall revenue mix[83]. Financial Position - The Group's financial position as of June 30, 2020, shows a decline in total assets compared to the previous year, indicating potential challenges in liquidity and operational efficiency[10]. - As of June 30, 2020, the Group's total assets were HK$1,101,864,000, a decrease from HK$1,223,423,000 as of December 31, 2019[32]. - The Group's net asset value per share (excluding non-controlling interests) decreased to HK$0.25 as of June 30, 2020, from HK$0.31 as of December 31, 2019[32]. - Available cash and bank balances as of June 30, 2020, were HK$388,895,000, down from HK$465,529,000 as of December 31, 2019[32]. - Total borrowings as of June 30, 2020, were HK$109,284,000, a slight decrease from HK$116,176,000 as of December 31, 2019[32]. - The Group maintained a surplus net cash position of HK$279,611,000 as of June 30, 2020, compared to HK$349,353,000 as of December 31, 2019[32]. - Net current assets decreased to HK$448,315,000 from HK$549,298,000 as of December 31, 2019[48]. - Total liabilities increased to HK$392,577,000 from HK$379,810,000 at the end of 2019[50]. - Equity attributable to the Company's shareholders decreased to HK$584,317,000 from HK$718,738,000 in the previous year[50]. - As of June 30, 2020, total equity amounted to HK$709,287,000, a decrease from HK$843,613,000 as of January 1, 2020, reflecting a loss for the period of HK$130,221,000[54]. Strategic Initiatives - The Company is focusing on expanding its market presence and exploring new strategic partnerships to enhance growth opportunities in the coming periods[10]. - Future outlook includes a cautious approach to market conditions, with an emphasis on cost management and operational efficiency to navigate uncertainties[10]. - New product development initiatives are underway, aimed at diversifying the service offerings and enhancing competitive advantage in the market[10]. - The Group is actively pursuing potential mergers and acquisitions to strengthen its market position and expand its service capabilities[10]. - The management is committed to improving shareholder value through strategic investments and operational improvements[10]. - The Group has established its presence in security, logistics, insurance, and infrastructure across multiple countries, including Cambodia, Laos, Myanmar, and South Africa, despite the challenges posed by the COVID-19 pandemic[23]. - Demand for the Group's security and insurance services in the DRC and Cambodia has grown remarkably during the Current Period[25]. - The management believes that business performance will improve in the foreseeable future due to positive catalysts and ongoing demand for services[25]. Operational Challenges - The ongoing impact of COVID-19 has severely disrupted operations, particularly in logistics and infrastructure, leading to increased operating costs[21]. - User data indicates a shift in customer preferences, prompting the Company to adapt its service delivery models accordingly[10]. - The outbreak of COVID-19 has disrupted the Group's business development activities, affecting the timeline for the intended use of unutilized net proceeds[36]. - The Group's air ambulance services are benefiting from high demand during the pandemic, indicating potential growth opportunities[23]. Employee and Shareholder Information - The Group's total number of employees increased to 1,275 as of June 30, 2020, up from 625 on December 31, 2019[30]. - The company did not recommend any interim dividend for the six-month period ended June 30, 2020, consistent with the previous year[114]. - The company has not granted any share options or shares under its incentive schemes during the six-month period ended June 30, 2020[28]. - The interests of 5% or more of the issued share capital of the Company were recorded in the register as required by Section 336 of the SFO[176]. - The Company has a share option scheme for directors, with details provided in the report[171]. - The total number of shares held by substantial shareholders and other persons with interests of 5% or more was disclosed in the report[176]. Share Option Scheme - The share option scheme adopted on March 28, 2012, aims to incentivize and retain existing employees while attracting new talent[185]. - The movements in the number of outstanding share options and their related weighted average exercise prices are tracked as part of the share option scheme[186]. - As of June 30, 2020, there were 73,239,276 outstanding share options, an increase of 39.2% from 52,591,090 options on June 30, 2019[188]. - Out of the outstanding options, 49,791,090 were exercisable as of June 30, 2020, compared to 31,194,060 options in the previous year, representing a growth of 59.7%[189]. - The weighted average exercise price per share for options outstanding as of June 30, 2020, was HK$1.136, slightly down from HK$1.277 on June 30, 2019[188]. - The share options granted on April 7, 2020, had an exercise price of HK$0.970, with 2,800,000 options available[192]. - The next expiry date for share options is August 29, 2024, with an exercise price of HK$0.800 for 23,448,186 options[192]. - The company continues to monitor and adjust its share option plans in response to market conditions and performance metrics[191].

Strategic Adjustments and Business Development - The Group achieved positive effects from strategic adjustments and deployment, particularly in projects along the Belt and Road initiative [12]. - The Group has made significant progress in obtaining large-scale infrastructure and resource projects, leveraging localization advantages in major operating countries [18][21]. - The Group aims to consolidate resources and focus on expanding the development of five major logistics channels and significant projects in 2020 [27][29]. - The Group is committed to enhancing its service quality and reputation, receiving positive feedback from international investors, including Chinese enterprises [15]. - The Group is optimistic about overcoming challenges posed by the coronavirus outbreak and is committed to finding opportunities amid the crisis [59]. Security and Logistics Services - The security segment expanded its services in more countries, enhancing service quality and establishing a strong reputation among international investors [13]. - The Group received multiple contracts for security services, reflecting its growing presence and reputation in the market [13]. - A focus on building capacity included the establishment of a security training base and recruitment of international talents to strengthen security capabilities [13]. - The logistics segment restructured its business and promoted five major logistics channels, enhancing customer service quality [13]. - Key logistics channels include routes from the Democratic Republic of Congo to various regions, improving the Group's position as a preferred logistics partner [13]. Financial Performance and Challenges - The Group reported a consolidated revenue of HK$725,920,000 for the year ended December 31, 2019, a decrease of 16% from HK$866,748,000 in 2018 [34]. - The loss for the year was HK$356,747,000, compared to a loss of HK$256,623,000 in 2018, primarily due to increased employee benefit expenses and impairment provisions [34]. - Revenue from the aviation and logistics business decreased by HK$160,638,000, with significant contributions from Phoenix Aviation Limited and Maleth Aero Limited declining [43]. - The Group incurred net cash used in operating activities of HK$276,731,000 during the year [39]. - The total liabilities-to-total assets ratio increased to 0.31 from 0.21 in 2018, reflecting a rise in financial leverage [38]. Human Resources and Employee Development - The total number of employees increased to 625 as of December 31, 2019, from 477 in 2018, indicating growth in human resources [64]. - The Group places high priority on enhancing skills of ground logistics staff, particularly in operating warehouse equipment, and provides customized training for pilots and engineers [196]. - The Group is committed to providing employees with an inclusive workplace that promotes diversity and equal opportunity, with zero tolerance for harassment and discrimination [186]. - The group emphasizes talent development as essential for maintaining competitive advantage and organic growth [198]. - Various specialized selection and assessment tools are developed to attract the best talent in the market [199]. Corporate Governance and Risk Management - The Group's overall commitment to corporate governance is reflected in its adherence to the Corporate Governance Code and the importance placed on accountability and transparency [105][106]. - The Company has established four board committees: Audit Committee, Nomination Committee, Remuneration Committee, and Risk Committee [108]. - The Board is responsible for preparing financial statements that provide a true and fair view in accordance with statutory requirements [112]. - The Company has a structured approach to risk management, involving both top-down and bottom-up methodologies for evaluating risks [153]. - The Group's internal audit function provides risk-based assurance and advice to the Board through the Audit Committee and the Risk Committee, enhancing risk management and internal control effectiveness [154]. Environmental, Social, and Governance (ESG) Initiatives - The Group's ESG report summarizes performance for the year ended December 31, 2019, focusing on distribution, warehousing, and aviation services [169]. - The total amount of hazardous waste produced decreased by approximately 36% compared to last year [178]. - Water consumption was reduced by approximately 12% compared to last year [180]. - The Group is committed to increasing strategic investment in energy-efficient technologies, including sourcing greener fuels and aircraft [182]. - Employees are encouraged to practice waste segregation and recycling, with dedicated bins set up for this purpose [179].

Financial Performance - Revenue from contracts with customers for the six months ended June 30, 2019, was HK$346.69 million, a slight decrease from HK$348.20 million in the same period of 2018[13]. - Operating loss for the current period was HK$136.15 million, compared to an operating loss of HK$127.82 million in the prior year, indicating a deterioration in operational performance[13]. - Loss before income tax for the current period was HK$137.26 million, compared to HK$131.28 million in the corresponding period of 2018[13]. - Loss for the period was HK$132.93 million, which is higher than the loss of HK$126.63 million reported in the same period last year[13]. - The total comprehensive loss for the period was HK$136.56 million, compared to HK$130.30 million in the same period of 2018, reflecting an increase of about 4.8%[37]. - The Group reported a loss attributable to equity holders of HK$132,918,000 for the six-month period ended June 30, 2019, compared to a loss of HK$126,914,000 in the same period of 2018[110]. Expenses and Costs - Employee benefit expenses amounted to HK$112.99 million, up from HK$99.85 million in the previous year, reflecting a 13% increase[13]. - Cost of direct materials and job expenses was HK$107.71 million, compared to HK$93.80 million in the prior year, representing a 15% increase[13]. - Depreciation expenses for the ALO Business segment are HK$25,686,000, while the FMI Business segment incurs HK$278,000 in depreciation[87]. - Direct materials and job expenses amounted to HK$107,714,000 in 2019, up from HK$93,803,000 in 2018, indicating a rise of approximately 14.8%[105]. Revenue Breakdown - Revenue from the aviation and logistics business decreased by HK$10,001,000, primarily due to a drop in revenue from Phoenix Aviation Limited from HK$41,479,000 in 2018 to HK$14,306,000 in 2019[16]. - Revenue from the logistics business managed in Shanghai increased significantly from HK$54,737,000 in 2018 to HK$83,704,000 in 2019, representing a growth of 53%[16]. - Transit Freight Forwarding (Pty) Ltd contributed approximately 50% of the Group's total revenue, maintaining a breakeven position compared to a loss in the same period last year[17]. - Maleth Aero Limited reported a total revenue of HK$50,761,000, down from HK$53,693,000 in the previous year, due to aircraft maintenance affecting management time[21]. - The ALO Business segment generated revenue of HK$338,665,000, while the FMI Business segment contributed HK$8,025,000[87]. Assets and Liabilities - As of June 30, 2019, the Group's total assets were HK$1,448,627,000, a decrease from HK$1,505,983,000 on December 31, 2018[27]. - The Group's total liabilities increased to HK$386,782,000 as of June 30, 2019, compared to HK$314,462,000 on December 31, 2018[27]. - The net current assets position as of June 30, 2019, was HK$789,570,000, down from HK$944,541,000 on December 31, 2018[27]. - Total current liabilities increased from HK$214,990,000 as of December 31, 2018, to HK$254,435,000 as of June 30, 2019, an increase of approximately 18.4%[39]. - Net assets decreased from HK$1,191,521,000 as of December 31, 2018, to HK$1,061,845,000 as of June 30, 2019, a decline of about 10.9%[41]. Cash Flow and Financing - The net cash used in operating activities for the six-month period was HK$114,866,000, slightly higher than HK$113,952,000 in the previous year[49]. - The company experienced a net cash outflow from investing activities of HK$7,598,000, a significant decrease from HK$142,661,000 in the prior year[49]. - As of June 30, 2019, the Group's available cash and bank balances were HK$695,570,000, down from HK$838,509,000 as of December 31, 2018, while total borrowings increased to HK$121,000,000 from HK$62,276,000[29]. - Total borrowings increased to HK$121,000,000 as of June 30, 2019, compared to HK$62,276,000 as of December 31, 2018, representing a growth of 94.4%[122]. Share Capital and Options - The weighted average number of ordinary shares in issue increased to 2,344,818,660 in 2019 from 1,715,393,611 in 2018, reflecting a significant increase in share issuance[110]. - The number of issued ordinary shares remained at 2,344,818,660 as of both December 31, 2018, and June 30, 2019[129]. - As of June 30, 2019, there were 52,591,090 outstanding share options, an increase from 43,489,090 on June 30, 2018[171]. - The share option scheme adopted on March 28, 2012, aims to incentivize and retain existing employees while attracting new talent[167]. Accounting Standards and Compliance - The Group adopted new HKFRS 16 for the accounting period starting January 1, 2019, which impacts lease accounting[58]. - The Group's interim financial statements are prepared in accordance with HKFRS and comply with the relevant accounting standards[58]. - The impact of new accounting standards on the Group's operations is continuously monitored to ensure compliance and accuracy[58]. - The Group has not early adopted any new standards that are not yet effective for the current accounting period[60]. Management and Strategy - The company continues to explore new strategies for market expansion and product development to improve financial performance in the future[10]. - The Group is actively exploring infrastructure business opportunities in Africa and Southeast Asia, expecting increased revenue from these regions in the future[23]. - The Group's long-term strategy is aligned with the Belt and Road Initiative, aiming to deliver good investment returns to stakeholders[25].

Business Strategy and Operations - CITIC increased its stake in Frontier Services Group, remaining the largest shareholder, indicating confidence in the Group's strategic adjustments and positive results[16] - The Group focused on business along the Belt and Road, particularly in high-risk areas, enhancing logistics and insurance services related to large-scale projects[16] - In 2018, the Group established security services in more countries, providing security assessments and training for international investors, including Chinese enterprises[17] - A logistics safe passage was opened between Xinjiang and Pakistan for China Three Gorges Corporation, demonstrating the Group's logistics capabilities[17] - The Group began logistics engineering projects in Cambodia and Bangladesh, showcasing its capacity in power transmission and transformation[17] - In Africa, the Group facilitated eastbound and southbound passages, ensuring continuous high-speed business growth and becoming a preferred partner for Chinese enterprises[17] - The Group is planning to establish joint-venture insurance companies in key countries to enhance its service offerings[20] - FSG Insurance and Taiping Insurance developed a personal accident insurance product called "Taiping Pioneer Insurance" to address personal safety risks for international investors[20] - The Group's management team is focused on seizing valuable market opportunities to generate more revenue through ongoing projects[23] - The Group aims to provide improved services, including medical transportation and emergency rescue services, particularly for overseas investors in Africa[21] - The Group plans to participate in infrastructure projects in 2019, focusing on transportation corridors, energy, and logistics networks, aligning with China's Belt and Road initiative[66] - The Group aims to maximize synergies by establishing an infrastructure business segment to support large project opportunities[66] - Key growth drivers remain in security, logistics, and insurance, with a focus on delivering a comprehensive chain of services to customers[66] Financial Performance - The Group reported a consolidated revenue of HK$866,748,000 for the year ended 31 December 2018, primarily driven by the expansion of logistics business in Shanghai[38] - The operating loss for 2018 was HK$259,248,000, representing a 17% increase from the operating loss of HK$221,448,000 in 2017[39] - Employee benefit expenses and rental expenses increased due to the Group's expansion along the Belt and Road regions, contributing to the operating loss[39] - The Group's basic loss per share for 2018 was (13.61) cents, compared to (15.84) cents in 2017[43] - Total assets increased by 70% to HK$1,505,983,000 in 2018 compared to 2017, primarily due to the issuance of new shares and the exercise of share options[46] - Consolidated revenue for 2018 was HK$866,748,000, marking a 20% annual growth, driven mainly by the expansion of the logistics business in Shanghai[49] - The logistics business in Shanghai contributed HK$189,545,000 in revenue for 2018, a significant increase from HK$24,328,000 in 2017[50] - The aviation and logistics business accounted for 98% of the Group's total revenue in 2018, up from 97% in 2017[52] - The financial market information business generated revenue of HK$17,472,000 in 2018, reflecting a 12% decline from the previous year due to weakened market demand[50] - The current ratio at year-end 2018 was 5.39, while the total liabilities-to-total assets ratio was 0.21, indicating improved financial stability[46] - The Group's share price closed at HK$1.24 at year-end 2018, contributing to a decrease in the price-to-book ratio[46] - The Group reported revenue of HK$849,276,000 from operating subsidiaries, primarily from Africa, Southern Europe, and Mainland China[57] - Transit Freight Forwarding (TFF) generated HK$373,745,000 in revenue for 2018, reflecting a 3% growth compared to the previous year[57] - Shanghai Logistics reported revenue of HK$189,545,000 in 2018, with expectations for continued growth in 2019 due to further development of logistics businesses between PRC and Africa[57] - Maleth Aero Limited generated HK$151,834,000 in revenue for 2018, with optimistic projections for 2019 based on managing more profitable aircraft and freight services[57] - The Group's AL Business loss increased by 21% to HK$196,737,000 compared to 2017, primarily due to office expansions and initial setup expenses[57] Asset Management and Capital Structure - Cash and bank balances rose to HK$838,509,000 in 2018, compared to HK$302,057,000 in 2017, reflecting a growth of 177%[74] - Total borrowings decreased to HK$62,276,000 in 2018 from HK$258,347,000 in 2017, marking a reduction of approximately 76%[74] - The Group's net asset value per share (excluding non-controlling interests) increased to HK$0.45 as of December 31, 2018, up from HK$0.18 in 2017[73] - The Group granted 21,397,030 share options in 2018, compared to 14,497,030 in 2017, representing a 47% increase[70] - The Group's bank loans amounted to HK$215,804,000 in 2018, an increase from HK$153,705,000 in 2017, reflecting a growth of 40%[74] - The company raised net proceeds of HK$830,567,000 from the issuance of 640,000,000 new shares at an issue price of HK$1.30 each, primarily for business development, loan repayment, and working capital[79] - As of December 31, 2018, approximately HK$389,163,000 of the raised funds were utilized, including HK$16,678,000 for business setup in Myanmar, Laos, and Cambodia, and HK$176,092,000 for bank loan repayment[79] - A total of HK$192,456,000 was raised from the issuance of 216,000,000 new shares at HK$0.90 each, fully utilized for the development of the existing aviation business by December 31, 2018[81] Risk Management and Corporate Governance - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2018[93] - The Board of Directors has established three committees: the Audit Committee, the Nomination Committee, and the Remuneration Committee[94] - All independent non-executive directors have confirmed their independence in accordance with the Listing Rules[100] - The Group's financial statements are prepared to provide a true and fair view in accordance with statutory requirements and applicable financial reporting standards[100] - The Audit Committee reviewed the annual consolidated financial statements and discussed risk management and internal control systems during the year ended December 31, 2018[104] - The Remuneration Committee assessed the Group's remuneration policy for executive directors and senior management, ensuring no director was involved in deciding their own remuneration[108] - The Risk Committee is responsible for overseeing the Group's risk appetite and risk principles, and for managing risks related to corporate actions and sanctions[108] - The Group's risk management and internal control systems were reviewed for effectiveness, with further details provided in the "Principal Risks and Uncertainties" section[108] - The Company has established a Risk Management Policy to maintain a consistent basis for risk identification, analysis, evaluation, treatment, monitoring, and reporting across all levels to support strategic objectives[156] - A comprehensive risk assessment exercise was conducted, identifying key risks categorized into strategic business, financial, operational, and compliance aspects, represented in a risk heat map[162] - The internal audit function assessed major changes in the organizational structure and updated the internal audit plan accordingly, ensuring effective risk management and internal control systems[162] - The Board confirmed that the Group's risk management and internal control systems were effective and adequate, complying satisfactorily with the CG Code requirements[162] Environmental, Social, and Governance (ESG) Initiatives - The Group is committed to reducing environmental impact through emission reduction and improving energy efficiency[172] - The Group's aviation business in Kenya has implemented drag-reducing devices on trucks, estimated to lower fuel usage by 5%[173] - The Group's flagship aviation business has relocated full power engine runs to a designated area to reduce air and noise pollution impact[177] - The Group encourages proper waste segregation and recycling, with used oil from aircraft servicing stored for recycling by qualified vendors[177] - The Group promotes sustainable practices at the workplace, including energy conservation and reduced paper consumption[180] - The Group actively engages stakeholders through various channels to prioritize ESG issues[174] - The Group strictly prohibits the use of child or forced labor in its operations and expects suppliers and contractors to adhere to the same standards[196] - The Group's freight forwarding business became a member of the Supplier Ethical Data Exchange (SEDEX) and underwent SMETA audits to evaluate performance in labor rights, health and safety, and business ethics[197] - The Group's flagship aviation business is certified by the Department of Occupational Safety and Health Services in Kenya, recognizing its achievements in workplace safety[193] - The Group provides personal protective equipment and first aid training to employees, ensuring a safe working environment[193] - The Group promotes a diverse and inclusive workplace, adhering to a zero-tolerance policy towards harassment and discrimination[1] - The Group emphasizes talent development as essential for maintaining competitive advantage and organic growth, with training programs tailored to daily job functions[194] - Over fifty management personnel from the Group's logistics arm participated in a ten-day safety and security training in China to enhance their operational management skills[195]