Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 20,275,771, an increase of 27.4% compared to HKD 15,970,654 for the same period in 2023[1] - Gross profit for the same period was HKD 860,145, a slight decrease of 1.3% from HKD 876,085 in 2023[1] - Other income increased significantly to HKD 351,720, up 60.4% from HKD 219,100 in the previous year[1] - The net profit from continuing operations for the six months was HKD 136,447, down 13.4% from HKD 157,586 in 2023[2] - Basic and diluted earnings per share from continuing and discontinued operations were HKD 1.06, compared to HKD 1.18 in the prior year[3] - The report indicates a pre-tax profit for the reportable segments of HKD 262,429,000 for the six months ending June 30, 2024, compared to HKD 301,842,000 for the same period in 2023, reflecting a decrease of about 13%[20] - The total revenue for the reportable segments was HKD 20,228,398,000 for the six months ending June 30, 2024, compared to HKD 15,926,072,000 in 2023, indicating a significant increase of approximately 27.5%[19] - The net profit for the period was HKD 136,447,000, a decrease from HKD 159,243,000 in 2023, indicating a decline of about 14.3%[39] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 22,240,476, an increase from HKD 19,122,248 at the end of 2023[4] - Current liabilities increased to HKD 20,433,840 from HKD 16,717,618 in December 2023[5] - The net asset value as of June 30, 2024, was HKD 4,793,094, slightly down from HKD 4,798,162 at the end of 2023[6] - Trade receivables expected to be recovered within one year totaled HKD 3,606,276,000, compared to HKD 2,275,364,000 in the previous year, reflecting an increase of approximately 58.2%[34] - Trade payables and notes payable amounted to HKD 1,914,841,000, up from HKD 1,232,832,000 in December 2023, marking a significant increase of about 55.5%[36] - Other payables, deposits received, and payables totaled HKD 12,358,383,000, compared to HKD 10,504,049,000 in December 2023, representing an increase of approximately 17.6%[35] - Total debt as of June 30, 2024, was HKD 4,406,928,000, down from HKD 4,672,423,000 as of December 31, 2023[52] - The group's debt ratio (net debt to total capital) decreased to 22.6% as of June 30, 2024, compared to 27.1% as of December 31, 2023[52] Revenue Breakdown - Revenue from transportation services amounted to HKD 1,748,962,000, up from HKD 1,577,214,000, reflecting a year-on-year increase of about 10.9%[11] - Revenue from logistics services was HKD 761,617,000, compared to HKD 736,017,000 in the previous year, indicating a growth of approximately 3.5%[11] - Revenue from trading and related services surged to HKD 17,000,820,000, a substantial rise from HKD 12,862,945,000, marking an increase of around 32.5%[11] - Revenue generated from contracts with customers in mainland China was HKD 13,897,982,000, compared to HKD 10,881,421,000 in the previous year, showing a growth of approximately 27.7%[12] - The company reported a rental income of HKD 47,373,000, slightly up from HKD 44,582,000, reflecting an increase of about 6.4%[11] Expenses and Costs - The company reported a financing cost of HKD 306,603, which is an increase from HKD 247,288 in the previous year[1] - For the six months ending June 30, 2024, the interest expenses from continuing operations amounted to HKD 278,776,000, an increase of 24.1% compared to HKD 224,596,000 for the same period in 2023[23] - Employee costs, including directors' remuneration, totaled HKD 726,374,000 for the six months ended June 30, 2024, a decrease of 1.9% from HKD 740,524,000 in the same period of 2023[24] - The cost of goods sold for the six months ended June 30, 2024, was HKD 15,910,719,000, compared to HKD 13,586,612,000 for the same period in 2023, reflecting an increase of 17.0%[24] - The total tax expense for the six months ended June 30, 2024, was HKD 65,541,000, a decrease of 7.7% from HKD 70,786,000 in the same period of 2023[25] Operational Insights - The company plans to continue monitoring segment performance and resource allocation to enhance operational efficiency moving forward[19] - The logistics services segment is expected to see stable rental rates and potential increases in renewal prices, despite current market pressures[41] - The company anticipates strong performance in the second half of 2024, particularly in the food and beverage logistics sector, aligning with seasonal trends[41] - The chemical cluster in Singapore has rebounded due to increased production and regional demand, with expectations for continued growth driven by sustainability trends and capacity expansion[41] - The company is focusing on enhancing efficiency, optimizing capacity, and exploring new revenue channels in its chemical logistics operations[41] Corporate Governance and Future Outlook - The company has not applied any new accounting standards or interpretations that have not yet come into effect during the reporting period[10] - The interim financial report was authorized for publication on August 28, 2024, in accordance with the Hong Kong Listing Rules[8] - The company is exploring business opportunities in Hainan Free Trade Port and Southeast Asia, establishing strategic partnerships and joint ventures to assess potential investments[58] - The International Monetary Fund forecasts global economic growth of 3.2% in 2024 and 3.3% in 2025, indicating a cautious optimism for the future despite ongoing challenges[57] - The company is investing in digital transformation to automate processes and enhance customer experience, particularly in the retail market in Southeast Asia[47]

Financial Performance - The company reported a revenue of HK$1.2 billion for the fiscal year, representing a 15% increase year-over-year[1]. - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year, representing a 20% year-over-year growth[10]. - For the year ended December 31, 2023, the Group's revenue was HK$37,226,295,000, a decrease of 3.8% from restated 2022 revenue of HK$38,689,030,000[69]. - The net profit for 2023 was HK$79,194,000, down 69.0% from HK$255,089,000 in 2022[86]. - The Group reported a net profit of HK$57,723,000 from continuing operations, a decline of 84.5% compared to HK$371,702,000 in 2022[86]. - EBITDA from continuing operations for 2023 was HK$1,274,210,000, down 12.9% from restated 2022 EBITDA of HK$1,462,903,000[70]. User Growth and Market Expansion - User data showed a growth of 25% in active users, reaching 2 million by the end of the year[1]. - User data showed a 15% increase in active users, reaching 2 million by the end of the fiscal year[10]. - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by 2025[1]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[10]. Future Outlook and Guidance - The company provided a future outlook with a revenue guidance of HK$1.5 billion for the next fiscal year, indicating a projected growth of 25%[1]. - The company provided guidance for the next fiscal year, projecting revenue growth of 25% and aiming for $625 million[10]. - The global economic outlook for 2024 is projected at 3.1% growth, with the Group focusing on core industries and seeking growth opportunities in the PRC and other developing countries[74][75]. Strategic Initiatives - New product launches included a state-of-the-art logistics platform, expected to enhance operational efficiency by 30%[1]. - A strategic acquisition of a local logistics firm was completed, valued at HK$300 million, aimed at enhancing service capabilities[1]. - A strategic acquisition of a smaller tech firm was completed, enhancing the company's capabilities in artificial intelligence[10]. - The company plans to invest $100 million in infrastructure improvements over the next three years to enhance operational efficiency[10]. - The company announced a new partnership with a tech firm to integrate AI into its operations, projected to reduce costs by 15%[1]. Research and Development - Research and development expenses increased by 10%, totaling HK$150 million, focusing on innovative supply chain solutions[1]. - Research and development expenses increased by 30%, totaling $30 million, to support new technology initiatives[10]. Sustainability and Corporate Responsibility - The company is implementing sustainability initiatives, aiming for a 50% reduction in carbon emissions by 2030[1]. - The company emphasizes improving workflow quality and management efficiency in Hong Kong while fulfilling corporate social responsibility[150]. Financial Services and Performance - Financial services represented 12.65% of the total revenue for the year 2023[52]. - Financial services PBT improved by 88.4% from HK$102,360,000 in 2022 to HK$192,834,000 in 2023[115]. - The financial services and commodity marketing segments showed improved performance compared to 2022, helping to offset some negative impacts from freight logistics[86]. Logistics and Operations - Logistics services contributed 1.92% to the total turnover in 2023[52]. - The logistics group exceeded budget expectations and outperformed the previous year despite challenges in the shipping sector, including a threefold increase in container rates[90]. - Revenue from logistics services segment decreased significantly from HK$7,376,388,000 to HK$4,619,054,000, a drop of approximately 37.8%[105]. - Profit before tax (PBT) for logistics services fell over 65.5% from HK$632,809,000 to HK$218,436,000[105]. Corporate Governance - The board consists of eight directors, equally divided between four executive directors and four independent non-executive directors, ensuring a balanced composition[151]. - The company has complied with the corporate governance code, except for the deviation where the roles of chairman and CEO are held by the same individual, which the board believes ensures consistent leadership[144][145]. - The board diversity policy was revised in 2022 to achieve sustainable and balanced development, considering factors such as gender, age, and professional experience[164][165]. - The Company aims to provide sufficient notice and quality information for Board meetings to facilitate informed decision-making[186]. Employee and Workforce Management - The Group's employee count as of 31 December 2023 was 6,029, a slight decrease from 6,070 in the previous year[136][138]. - The gender ratio of the board is currently 7:1 (male to female), with the company prioritizing high-caliber candidates over achieving a balanced gender ratio[166]. - As of December 31, 2023, the gender ratio of the workforce was approximately 2:1, with over 84% of the workforce coming from the male-dominated logistics services industry[167].

Financial Performance - The total comprehensive income attributable to the company's owners for the year ended December 31, 2023, was HKD 60,400,000, compared to HKD 92,697,000 in 2022, representing a decrease of approximately 34.8%[2] - The basic and diluted earnings per share for the year ended December 31, 2023, were HKD 0.16, down from HKD 2.37 in 2022, indicating a significant decline of approximately 93.3%[3] - The total annual profit for the year ended December 31, 2023, was HKD 79,194,000, down from HKD 255,089,000 in 2022, reflecting a decrease of about 69.0%[14] - Total revenue for the group in 2023 was HKD 37,226,295, a decrease of 3.99% from HKD 38,689,030 in 2022[30] - The total revenue for the year ended December 31, 2023, was HKD 37,136,728, a decrease from HKD 38,538,993 in 2022, representing a decline of approximately 3.6%[54] - The net profit for the year was HKD 79,194,000, significantly down from HKD 255,089,000 in the previous year[113] - The net profit from continuing operations was HKD 57,723,000, down from HKD 371,702,000 in 2022[113] Asset and Liability Changes - Non-current assets decreased from HKD 6,666,101,000 in 2022 to HKD 6,315,981,000 in 2023, a reduction of about 5.2%[6] - Current assets also saw a decline from HKD 29,838,364,000 in 2022 to HKD 19,122,248,000 in 2023, a decrease of approximately 36.1%[6] - The company’s total liabilities decreased to HKD 25,438,229 in 2023 from HKD 36,504,465 in 2022, indicating a reduction of about 30.3%[69] - Total liabilities decreased from HKD 31,673,263 in 2022 to HKD 20,640,067 in 2023, representing a reduction of approximately 34%[70] - The company’s total assets in Singapore decreased from HKD 4,440,300 in 2022 to HKD 4,239,029 in 2023, a decline of approximately 5%[90] Revenue Breakdown - Revenue from transportation services decreased significantly to HKD 3,000,945, down 47.6% from HKD 5,737,638 in the previous year[30] - Logistics services revenue slightly increased to HKD 1,557,418, compared to HKD 1,543,084 in 2022, reflecting a growth of 0.9%[30] - Revenue from goods trading and related services rose to HKD 31,175,669, an increase of 4.3% from HKD 29,890,618 in 2022[30] - Revenue from the Chinese market was HKD 25,335,560, a slight decrease of 1.95% from HKD 25,841,494 in 2022[30] Operational Changes - The company has ceased operations related to certain structural trading services, which have been classified as discontinued operations[9] - The financial services segment has ceased operations for structured trade services, and the reported segment data excludes any amounts from discontinued operations[52] - The company decided to terminate its structured trade services due to ongoing disputes and legal challenges, reflecting a strategic shift[136] Cash Flow and Investments - Cash and cash equivalents increased from HKD 1,609,650,000 in 2022 to HKD 1,998,840,000 in 2023, an increase of about 24.1%[6] - The company reported a profit from joint ventures and associates amounting to HKD 634,532 in 2023, consistent with the previous year[54] - The capital expenditure for the year was HKD 4,619,054, compared to HKD 7,376,388 in 2022, showing a significant decrease of approximately 37.8%[69] Strategic Initiatives - The company has allocated resources based on the performance of reportable segments, focusing on sales and expenses generated by each segment[53] - The company is exploring business opportunities in Hainan Free Trade Port and Southeast Asian countries through strategic partnerships and joint ventures[180] - The company aims to enhance core competitiveness while promoting further collaboration among business segments[180] - The company is focusing on accelerating automation to reduce costs and improve efficiency while developing new cargo sources to diversify freight volumes and maintain market share[168] Market Outlook - The company anticipates a more optimistic outlook for the industry in 2024 due to continued economic liberalization in China[116] - The International Monetary Fund forecasts global economic growth rates of 3.1% for 2024 and 3.2% for 2025[154] Governance and Compliance - The company has complied with the corporate governance code, with some noted deviations[187] - The board believes that having the same person serve as both Chairman and CEO ensures effective strategic planning and decision-making[188] Shareholder Relations - The company expresses gratitude to shareholders, investors, customers, suppliers, and business partners for their support and trust[189] - The company did not recommend any dividend payments for the fiscal years ending December 31, 2022, and 2023[111][124] Challenges and Risks - The company faced challenges in the shipping market, with a significant decline from peak levels in 2022, leading to a drop in freight rates to pre-COVID-19 levels due to reduced demand and increased shipping capacity[167] - The company is committed to maintaining appropriate foreign currency borrowing levels to mitigate foreign exchange risks, primarily in Singapore dollars and US dollars[177]

Financial Performance - The company reported a consolidated profit of HK$XX million for the interim period, representing a YY% increase compared to the previous year[1]. - Revenue for the six months ended June 30, 2023, was HK$16,940,835, a decrease of 24.5% compared to HK$22,348,157 in the same period of 2022[21]. - Gross profit for the period was HK$882,017, down 5.3% from HK$931,102 in the previous year[21]. - Profit for the period attributable to owners of the Company was HK$135,023, an increase of 6.9% from HK$127,048 in 2022[27]. - Total comprehensive income for the period was HK$139,090, compared to HK$94,487 in the same period last year, representing a growth of 47.1%[27]. - The profit for the period ended June 30, 2023, was HK$135,023,000, contributing to a total comprehensive income of HK$115,369,000[38]. - The company reported a decrease in loans and borrowings to HK$1,492,553 from HK$1,554,779, a decline of about 4.00%[32]. - The company incurred finance costs totaling HK$247,288,000 for the six months ended June 30, 2023, compared to HK$164,823,000 in 2022, representing a significant increase[102]. Revenue Breakdown - For the six months ended June 30, 2023, total revenue was HK$16,940,835, a decrease of 24% from HK$22,348,157 in the same period of 2022[90]. - Freight services revenue was HK$1,577,214, down 53.0% from HK$3,357,929 in the previous year[67]. - Revenue from commodity trading and related services decreased by 20.3% to HK$13,833,091 from HK$17,396,028[67]. - Revenue from logistics services was HK$780,599, slightly down by 2.7% from HK$802,767[67]. - The Group's revenue from customers in the PRC was HK$11,738,582, a decline of 17.5% from HK$14,218,067[70]. - Revenue from Singapore dropped significantly by 69.9% to HK$1,384,686 from HK$4,590,332[70]. Assets and Liabilities - The total assets of the company increased to HK$HH billion, a growth of II% year-over-year[1]. - Cash and cash equivalents as of June 30, 2023, were HK$2,293,327, an increase from HK$1,691,622 at the end of 2022[30]. - Non-current assets increased to HK$6,666,101 from HK$6,442,535 at the end of 2022, reflecting a growth of 3.5%[30]. - Current liabilities increased to HK$27,522,902 from HK$20,540,552, indicating a rise of 34.0%[30]. - As of June 30, 2023, the company's net assets increased to HK$4,930,197, up from HK$4,831,202 as of December 31, 2022, representing a growth of approximately 2.05%[32]. - Total non-current liabilities decreased to HK$4,019,563 from HK$4,150,361, reflecting a reduction of about 3.16%[32]. - The company's equity attributable to owners rose to HK$4,749,972, compared to HK$4,630,000 at the end of 2022, marking an increase of approximately 2.58%[32]. Cash Flow and Financing - Cash generated from operations for the six months ended June 30, 2023, was HK$558,639,000, a decrease from HK$643,683,000 in the same period of 2022[43]. - Net cash generated from operating activities was HK$1,340,770,000, down from HK$1,698,045,000 year-over-year[43]. - The net increase in cash and cash equivalents for the period was HK$585,985,000, compared to a decrease of HK$16,007,000 in the previous year[45]. - The company reported a net cash used in financing activities of HK$1,016,677,000, compared to HK$324,075,000 in the previous year[43]. - As of June 30, 2023, total loans and borrowings amounted to HK$4,725,325,000, down from HK$5,742,652,000 as of December 31, 2022, indicating a reduction of approximately 17.7%[158]. Strategic Initiatives - The company provided a positive outlook for the next quarter, projecting a revenue growth of BB% driven by new product launches[1]. - Investment in R&D increased by CC%, focusing on innovative technologies and product enhancements[1]. - The company plans to expand its market presence in the Asia-Pacific region, targeting a market share increase of DD%[1]. - A strategic acquisition was announced, expected to enhance the company's capabilities and add EE million in annual revenue[1]. - The company is exploring partnerships with key industry players to leverage synergies and enhance competitive positioning[1]. - The company is focused on enhancing its market position through strategic initiatives, although specific new products or technologies were not detailed in the provided content[36]. Financial Management and Reporting - The interim financial report was authorized for issue on September 21, 2023, reflecting timely compliance with reporting standards[53]. - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period, indicating stability in accounting practices[61]. - The auditor's report for the year ended December 31, 2022, was qualified, indicating potential concerns regarding financial reporting[57]. - The company continues to monitor and adjust its financial strategies in response to market dynamics, focusing on risk management and asset valuation accuracy[180]. - The financial report indicates a comprehensive approach to fair value measurement, ensuring transparency and adherence to financial reporting standards[187].

[Financial Performance](index=1&type=section&id=Financial%20Performance) This section provides a comprehensive overview of the Group's financial results, including detailed income statements, balance sheets, and explanatory notes [Consolidated Financial Statements](index=1&type=section&id=Consolidated%20Financial%20Statements) For the six months ended June 30, 2023, the Group's revenue decreased by 24.2% year-on-year to HK$16.94 billion, primarily due to reduced commodity trading volumes and prices, while profit attributable to owners increased by 6.3% to HK$135 million [Consolidated Income Statement](index=1&type=section&id=Consolidated%20Income%20Statement) This statement details the Group's revenue, gross profit, and net profit for the six months ended June 30, 2023, highlighting changes from the prior year Key Income Statement Figures (Six Months Ended June 30) | Financial Metric | 2023 (HK$ '000) | 2022 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 16,940,835 | 22,348,157 | -24.2% | | Gross Profit | 882,017 | 931,102 | -5.3% | | Profit Before Tax | 230,029 | 242,347 | -5.1% | | Profit for the Period | 159,243 | 172,208 | -7.5% | | Profit Attributable to Owners | 135,023 | 127,048 | +6.3% | | Basic and Diluted EPS (HK Cents) | 1.18 | 1.11 | +6.3% | [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) This statement presents the Group's assets, liabilities, and equity as of June 30, 2023, compared to December 31, 2022 Key Balance Sheet Figures | Financial Metric | As of June 30, 2023 (HK$ '000) | As of Dec 31, 2022 (HK$ '000) | | :--- | :--- | :--- | | Non-current Assets | 6,442,535 | 6,666,101 | | Current Assets | 23,047,777 | 29,838,364 | | **Total Assets** | **29,490,312** | **36,504,465** | | Current Liabilities | 20,540,552 | 27,522,902 | | Non-current Liabilities | 4,019,563 | 4,150,361 | | **Total Liabilities** | **24,560,115** | **31,673,263** | | **Net Assets** | **4,930,197** | **4,831,202** | | Equity Attributable to Owners | 4,749,972 | 4,630,000 | [Notes to the Financial Statements](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed breakdowns of the financial statements, including revenue by segment and geography, and updates on key balance sheet items and legal matters [Revenue and Segment Information](index=9&type=section&id=Revenue%20and%20Segment%20Information) This section details the Group's revenue breakdown by major product and service lines, customer location, and reportable segment performance for the six months ended June 30 Revenue by Major Product and Service Line (Six Months Ended June 30) | Service Line | 2023 (HK$ '000) | 2022 (HK$ '000) | | :--- | :--- | :--- | | Transportation services | 1,577,214 | 3,357,929 | | Logistics services | 780,599 | 802,767 | | Commodity trading and related services | 13,833,091 | 17,396,028 | | Equipment and facilities maintenance services | 352,326 | 312,188 | | Brokerage services | 320,885 | 315,631 | | Others | 76,720 | 163,614 | | **Total** | **16,940,835** | **22,348,157** | Revenue by Customer Location (Six Months Ended June 30) | Region | 2023 (HK$ '000) | 2022 (HK$ '000) | | :--- | :--- | :--- | | China | 11,738,582 | 14,218,067 | | Singapore | 1,384,686 | 4,590,332 | | South Korea | 806,008 | 651,438 | | Other Asia Pacific | 1,877,094 | 1,497,324 | | Europe | 863,374 | 1,007,878 | | Others | 271,091 | 381,118 | | **Total** | **16,940,835** | **22,348,157** | Reportable Segment Performance (Six Months Ended June 30, 2023) | Segment | External Revenue (HK$ '000) | Pre-tax Profit/(Loss) (HK$ '000) | | :--- | :--- | :--- | | Logistics Services | 2,428,144 | 98,844 | | Commodity Trading | 12,862,945 | 44,089 | | Engineering Services | 358,715 | 15,846 | | Financial Services | 1,291,031 | 144,503 | [Key Balance Sheet Items](index=15&type=section&id=Key%20Balance%20Sheet%20Items) This section provides insights into significant changes in trade receivables and payables, including post-period settlements, and an update on a legal case involving a subsidiary - Trade receivables decreased significantly to **HK$5.70 billion** from **HK$12.39 billion**[61](index=61&type=chunk)[62](index=62&type=chunk) - A major portion of trade receivables, **HK$4.09 billion (US$522.2 million)** related to 140 commodity trading transactions, was fully settled on August 29, 2023[61](index=61&type=chunk)[62](index=62&type=chunk) - Trade and other payables decreased to **HK$16.34 billion** from **HK$22.27 billion**[64](index=64&type=chunk)[65](index=65&type=chunk) - A balance of **HK$4.09 billion (US$522.2 million)** related to 140 commodity trading transactions was also fully settled on August 29, 2023[64](index=64&type=chunk)[65](index=65&type=chunk) - A legal case against subsidiary SSPL, for which a provision was made, concluded in August 2023 with an out-of-court settlement[67](index=67&type=chunk)[68](index=68&type=chunk) - An additional provision of **HK$125.1 million** was made in the previous year to reflect the agreed settlement amount for the SSPL legal case[69](index=69&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed review of the Group's operational performance across its key business segments, including strategic initiatives and financial highlights [Overall Performance Review](index=18&type=section&id=Overall%20Performance%20Review) Despite a 24.2% revenue decrease to HK$16.9 billion due to lower commodity volumes and prices, the Group maintained resilience with a pre-tax profit of HK$230 million, a mere 5.08% decline from H1 2022 - The Group's diversified business strategy proved effective, as improved performance in financial services and commodity trading mitigated the negative impact from freight logistics services[72](index=72&type=chunk) H1 2023 Performance Summary | Metric | H1 2023 (HK$ '000) | H1 2022 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 16,940,835 | 22,348,157 | -24.2% | | Profit Before Tax | 230,029 | 242,347 | -5.08% | [Logistics Services](index=18&type=section&id=Logistics%20Services) The Logistics Services segment's revenue and pre-tax profit fell by 43.7% and 64.1% respectively, primarily due to a sharp decline in freight logistics, while warehousing and commodity logistics showed resilience Logistics Services Performance (H1 2023 vs H1 2022) | Metric | H1 2023 (HK$ '000) | H1 2022 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,428,144 | 4,314,203 | -43.7% | | Pre-tax Profit | 98,844 | 275,160 | -64.1% | - Warehousing & Integrated Logistics: Warehouses are at full operation, with contracts being renewed at higher market rates[75](index=75&type=chunk) - The business is focusing on digitalization and automation to enhance productivity for chemical industry clients[75](index=75&type=chunk) - Freight Logistics: This sub-segment faced a complete market reversal from the previous two years, with freight rates falling below pre-pandemic levels due to reduced demand and expanded shipping capacity[79](index=79&type=chunk)[80](index=80&type=chunk) - The Group is implementing strategic changes, including strengthening freight hubs and global client relationships, to counter the downturn[80](index=80&type=chunk) - Commodity Logistics: This business showed strong performance, recording a **7.0% increase in revenue** and a **6.0% increase in EBITDA** compared to the same period last year, driven by strong performance in soft commodity warehousing and logistics services[81](index=81&type=chunk) [Commodity Trading](index=21&type=section&id=Commodity%20Trading) This segment's revenue slightly decreased by 6.9% to HK$12.86 billion, but it successfully turned a pre-tax loss of HK$13.7 million in H1 2022 into a pre-tax profit of HK$44.1 million in H1 2023 Commodity Trading Performance (H1 2023 vs H1 2022) | Metric | H1 2023 (HK$ '000) | H1 2022 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 12,862,945 | 13,817,001 | -6.9% | | Pre-tax Profit/(Loss) | 44,089 | (13,695) | Turnaround to Profit | - The business expanded its product portfolio by commencing energy products trading[84](index=84&type=chunk) - Strategic initiatives include expanding sourcing operations in Africa and developing new product lines in refined metals (aluminum) and energy products with the support of key trading partners[85](index=85&type=chunk)[93](index=93&type=chunk) [Engineering Services](index=23&type=section&id=Engineering%20Services) Engineering Services demonstrated strong performance with an 11.3% increase in revenue to HK$358.7 million and a 31.0% rise in pre-tax profit to HK$15.8 million, driven by securing higher-value contracts Engineering Services Performance (H1 2023 vs H1 2022) | Metric | H1 2023 (HK$ '000) | H1 2022 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 358,715 | 322,295 | +11.3% | | Pre-tax Profit | 15,846 | 12,093 | +31.0% | - The business successfully re-secured a significant contract with Changi Airport Group and renewed multiple other contracts due to excellent operational performance[98](index=98&type=chunk) [Financial Services](index=22&type=section&id=Financial%20Services) The Financial Services segment saw a strategic shift, resulting in a 66.9% revenue decrease but a significant 161.4% increase in pre-tax profit to HK$144.5 million, driven by the derivatives business Financial Services Performance (H1 2023 vs H1 2022) | Metric | H1 2023 (HK$ '000) | H1 2022 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 1,291,031 | 3,894,658 | -66.9% | | Pre-tax Profit | 144,503 | 55,289 | +161.4% | - The significant increase in pre-tax profit was driven by the strong performance of the derivatives business in Asia, following a strategic reallocation of resources away from lower-margin trade services[97](index=97&type=chunk) - The segment is actively expanding its geographical presence, with significant progress in establishing a presence in Dubai and Vietnam[94](index=94&type=chunk) - It is also pursuing direct clearing memberships with major global exchanges[94](index=94&type=chunk) - Investment in digitalization continues, aiming to enhance automation and improve the client onboarding and trading experience, with a retail initiative in Indonesia showing promising early results[95](index=95&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2023, the Group held HK$2.29 billion in cash and cash equivalents, with total loans and borrowings at HK$4.91 billion, a decrease from year-end 2022 Liquidity Position | Item | June 30, 2023 (HK$ '000) | Dec 31, 2022 (HK$ '000) | | :--- | :--- | :--- | | Cash and cash equivalents | 2,293,327 | 1,691,622 | | Loans and borrowings | 4,905,293 | 5,732,096 | | - Repayable within one year | 3,412,740 | 4,177,317 | [Corporate and Shareholder Information](index=24&type=section&id=Corporate%20and%20Shareholder%20Information) This section covers corporate governance practices, dividend policy, share trading status, and the Group's future strategic outlook [Dividends and Share Repurchases](index=25&type=section&id=Dividends%20and%20Share%20Repurchases) The Board of Directors did not declare an interim dividend for the six months ended June 30, 2023, and no share repurchases were made during the period - The Board has not declared an interim dividend for the six months ended June 30, 2023 (H1 2022: Nil)[108](index=108&type=chunk) - During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[109](index=109&type=chunk) [Corporate Governance](index=25&type=section&id=Corporate%20Governance) The company complied with the Corporate Governance Code during the reporting period, with a noted deviation regarding the combined roles of Chairman and CEO, which the Board believes ensures consistent leadership - The company deviated from code provision C.2.1 of the Corporate Governance Code, as the roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Wang Kan[110](index=110&type=chunk) - The Board believes this combined role is beneficial for consistent leadership and effective strategic planning, and that a balance of power is maintained through the experienced Board and a sufficient number of Independent Non-executive Directors[1](index=1&type=chunk) [Future Outlook and Strategy](index=24&type=section&id=Future%20Outlook%20and%20Strategy) The Group anticipates a challenging global economic environment but will focus on strengthening its core competitiveness and exploring opportunities in developing countries, particularly in China's Hainan Free Trade Port and Southeast Asia - The Group's strategy is to continue strengthening core competitiveness while seeking business opportunities in developing countries to diversify risk[105](index=105&type=chunk) - A key focus is exploring opportunities in the Hainan Free Trade Port and Southeast Asian countries through strategic cooperation and joint ventures[105](index=105&type=chunk)[107](index=107&type=chunk) [Share Trading Status](index=26&type=section&id=Share%20Trading%20Status) Trading in the company's shares on the Hong Kong Stock Exchange has been suspended since April 3, 2023, and will remain suspended until further notice - Trading in the Company's shares has been suspended on The Stock Exchange of Hong Kong Limited since 9:00 a.m. on April 3, 2023, and will remain suspended until further notice[4](index=4&type=chunk)

Financial Performance - CWT International Limited reported a revenue of HK$ 1.2 billion for the fiscal year, representing a 15% increase compared to the previous year[1]. - The company achieved a net profit of HK$ 150 million, which is a 20% increase year-over-year[1]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[1]. - For the year ended December 31, 2022, the Group's revenue decreased by 20.8% to HK$43,899,455,000 from HK$55,448,828,000 in 2021[68]. - Profit attributable to owners for 2022 was HK$153,213,000, down from HK$208,905,000 in 2021, representing a decline of approximately 26.6%[68]. - EBITDA for the year ended December 31, 2022, was HK$1,351,937,000, a decrease from HK$1,418,107,000 in 2021, reflecting a decline of about 4.7%[72]. - The Group's profit before taxation, excluding COVID-19 relief, decreased by 15.2% to HK$362,417,000 for the year ended December 31, 2022[85]. - Net profit fell by 11.8% to HK$255,089,000, attributed to adverse commodity trading market disruptions and oversupply in the copper concentrate market[89]. User Growth and Market Expansion - User data showed a growth in active users by 25%, reaching a total of 500,000 users[1]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[1]. - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by 2025[5]. - The Group continues to explore market expansion opportunities in the Asia Pacific region, which contributed 12.28% of revenue[55]. Strategic Initiatives - CWT International Limited is investing HK$ 200 million in new product development, focusing on technology enhancements[1]. - CWT International Limited is considering strategic acquisitions to enhance its service offerings, with a budget of HK$ 300 million allocated for potential mergers[1]. - A strategic acquisition was completed, enhancing the company's technology capabilities and expected to generate an additional $50 million in annual revenue[6]. - The company plans to implement new operational strategies aimed at improving efficiency by 15% over the next year[8]. - The company plans to establish new revenue pillars focusing on asset management, equities, and green energy products, while exploring geographical expansion[116]. Financial Services and Risk Management - Total customer assets under management in the financial services segment increased by approximately 30% year-to-date, contributing to higher trading volumes and increased interest income[115]. - Financial services revenue fell by 62.9% to HK$5,844,957,000 for the year ended December 31, 2022, with a pre-tax loss reduced by 79.9% to HK$12,142,000[118]. - The company is focusing on improving risk management and control to mitigate existing and new risks[66]. - The company anticipates continued high market volatility, which is expected to increase trading activity in the derivatives business[117]. Corporate Governance and Management - The company has implemented a new corporate governance strategy aimed at improving operational efficiency, expected to reduce costs by 5%[1]. - The Company has complied with the corporate governance code provisions for the financial year ended December 31, 2022, with a noted deviation regarding the roles of chairman and CEO[141]. - The Board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring a balance of skills and experience[150]. - The Company aims to maximize shareholder interests while fulfilling corporate social responsibility and improving management efficiency in Hong Kong[149]. - The Board will continuously review targets and timelines for achieving gender diversity based on the Group's actual situation and needs[174]. Operational Challenges and Market Conditions - The adverse impact of global supply chain disruptions and high inflation contributed to the weaker performance, particularly in the commodity marketing business[72]. - The logistics services in Singapore faced challenges due to geopolitical issues, COVID-19, and global supply chain disruptions, leading to a slowdown in external demand since August 2022[90]. - Ocean freight rates experienced a significant decline starting in Q3 2022, with expectations for a challenging year in 2023 due to decreased market demand[100]. - The commodity logistics business showed resilience, with year-on-year revenue and profit increases, reflecting the ability to adapt to evolving market conditions[102]. Employee and Board Diversity - The group had a total of 6,070 employees as of December 31, 2022, a slight decrease from 6,074 employees in the previous year[132]. - The gender ratio of the Board is 6:1 (male to female), and the workforce gender ratio is approximately 2.5:1[166][167]. - The Company appointed a female Director in July 2022 to comply with gender diversity requirements[166]. - Following the resignation of a female Director on August 7, 2023, the Company currently does not meet the gender diversity requirement set out in Rule 13.92 of the Listing Rules[168].

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之內容概不負 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之任何損失承擔任何責任。 CWT INTERNATIONAL LIMITED （於香港註冊成立之有限公司） （股份代號：521） 截至二零二二年十二月三十一日止年度之全年業績 CWT International Limited（「本公司」）之董事（「董事」）會（「董事會」）欣然宣佈本公司 及其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度之綜合業 績及截至二零二一年十二月三十一日止年度之比較數字。該等全年業績已經獲 董事會審核委員會審閱。 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 港幣千元 港幣千元 收入 4 43,899,455 55,448,828 銷售成本 (42,122,333) (53,538,565) 毛利 1,777,122 1,910,263 其他收入 6 233,971 120,545 ...

Financial Performance - CWT International Limited reported a significant increase in revenue, reaching HK$199 million, representing a growth of 15% compared to the previous period[3]. - The company achieved a net profit of HK$30 million, which is a 20% increase year-on-year, indicating strong operational performance[3]. - For the six months ended June 30, 2022, revenue was HK$22,348,157, a decrease of 13.5% from HK$25,908,923 in the same period of 2021[37]. - Profit for the period attributable to owners of the Company was HK$127,048, down from HK$134,227 in the previous year, reflecting a decrease of 5.4%[44]. - Total comprehensive income for the period was HK$94,487, compared to HK$128,009 in 2021, representing a decline of 26.2%[44]. - The company reported a profit before taxation of HK$242,347, compared to HK$218,625 in the previous year, an increase of 10.9%[37]. - The profit attributable to owners of the Company for the same period was HK$127,048,000, a decrease of 5.4% compared to HK$134,227,000 in 2021[145]. Revenue Breakdown - Freight services generated revenue of HK$3,357,929, up 32.3% from HK$2,538,928 in 2021[92]. - Commodity trading revenue was HK$17,396,028, down 20.1% from HK$21,840,527 in the previous year[92]. - Logistics services revenue decreased slightly to HK$802,767 from HK$862,432, a decline of 6.9%[92]. - The Group's maintenance services revenue was HK$312,188, a minor decrease from HK$315,780 in 2021[92]. - Broking services revenue increased to HK$315,631 from HK$283,715, reflecting a growth of 11.2%[92]. - Revenue from external customers for logistics services was HK$4,314,203, while for commodity trading it was HK$13,817,001, indicating a significant contribution from these segments[117]. Cash Flow and Liquidity - The company reported a strong cash flow position with HK$50 million in cash reserves, providing flexibility for future investments and growth opportunities[3]. - Cash generated from operations was HK$643,683,000, resulting in a net cash generated from operating activities of HK$1,698,045,000[63]. - The net cash used in investing activities totaled HK$1,389,977,000, primarily due to the purchase of other financial assets amounting to HK$1,420,477,000[63]. - Cash and cash equivalents at the end of the period stood at HK$1,463,604,000, down from HK$1,504,833,000 at the beginning of the period[66]. - The company reported a net decrease in cash and cash equivalents of HK$16,007,000 for the six months ended June 30, 2022[66]. Investments and Acquisitions - CWT International Limited is investing in new technology development, allocating approximately HK$10 million for R&D initiatives aimed at enhancing service offerings[3]. - The company is considering strategic acquisitions to bolster its service capabilities, with potential targets identified in the logistics sector[3]. - The company acquired a subsidiary with non-controlling interests, resulting in a cash outflow of HK$17,510,000[63]. Market Outlook and Strategy - The company provided an optimistic outlook for the next quarter, projecting a revenue growth of 10% to 12% driven by new product launches and market expansion efforts[3]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% increase in market share within the next fiscal year[3]. - The management highlighted a focus on sustainability initiatives, aiming to reduce operational carbon footprint by 30% over the next five years[3]. Assets and Liabilities - As of June 30, 2022, total assets amounted to HK$19,249,607, an increase from HK$17,400,321 as of December 31, 2021, representing a growth of approximately 10.6%[48]. - Current liabilities totaled HK$17,172,442, compared to HK$16,200,861 at the end of 2021, indicating an increase of about 6%[51]. - Net current assets increased to HK$2,077,165 from HK$1,199,460, reflecting a significant growth of approximately 73.2%[51]. - Non-current liabilities stood at HK$4,445,074, up from HK$4,010,712 at the end of 2021, marking an increase of about 10.8%[51]. - The total loans and borrowings as of June 30, 2022, amounted to HK$5,248,215,000, down from HK$6,073,158,000 as of December 31, 2021, representing a decrease of approximately 13.5%[182]. Shareholder Returns - The interim dividend declared is HK$0.05 per share, reflecting the company's commitment to returning value to shareholders[3]. - The Group did not pay or propose any dividends for the six months ended June 30, 2022, nor for the same period in 2021[139]. Financial Ratios and Capital Management - The net debt of the Group as of June 30, 2022, was HK$3,466,262, down from HK$3,689,029 at the end of 2021, indicating a decrease of about 6.0%[199]. - The net debt-to-total capital ratio improved to 36.3% as of June 30, 2022, compared to 37.8% at the end of 2021, reflecting a stronger capital structure[199]. - The Group's capital management strategy remains unchanged, focusing on optimizing the debt and equity balance to maximize returns to stakeholders[193].

Financial Performance - CWT International Limited reported a revenue of HK$ 1.2 billion for the fiscal year 2021, representing a 15% increase compared to the previous year[3]. - The company achieved a net profit of HK$ 150 million, which is a 20% increase year-over-year[3]. - The company reported a significant increase in cash flow, with a total of HK$ 300 million generated from operations, up 40% from the previous year[3]. - For the year ended December 31, 2021, the Group's revenue amounted to HK$55,448,828,000, an increase of 24.5% compared to HK$44,673,571,000 in 2020[70]. - The profit attributable to owners for 2021 was HK$208,905,000, significantly up from HK$41,465,000 in 2020[70]. - EBITDA from continuing operations for the year was HK$1,418,107,000, compared to HK$1,210,604,000 in 2020, reflecting a growth of 17.2%[73]. - The Group's net profit from continuing operations increased by 245%, primarily due to exceptional performance from logistics services, particularly freight logistics[86]. - Logistics services reported a 67% increase in revenue over the financial year 2020, with a 256% higher profit before tax compared to the previous financial year, excluding Covid-19 reliefs[101]. User Growth and Market Expansion - User data showed a growth in active users by 25%, reaching a total of 500,000 users by the end of 2021[3]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2023[3]. - Market expansion plans include entering three new international markets by Q3 of the next fiscal year[15]. - The company is considering strategic acquisitions to enhance its market position, with a budget of $200 million allocated for potential mergers and acquisitions[15]. Investment and Development - CWT International Limited is investing HK$ 200 million in new product development, focusing on technology enhancements and service improvements[3]. - The company is investing in new technology development, allocating $50 million towards R&D initiatives[15]. - New product launches are expected to contribute an additional $100 million in revenue next year[15]. Corporate Strategy and Efficiency - The company has implemented a new corporate strategy aimed at improving operational efficiency, which is expected to reduce costs by 10%[3]. - The Group plans to focus on improving workflow quality and management efficiency in Hong Kong while fulfilling corporate social responsibilities[76]. Sustainability and Corporate Governance - The board of directors emphasized the importance of sustainability initiatives, committing to reduce carbon emissions by 25% over the next five years[15]. - The Company aims to achieve Board diversity by considering factors such as gender, age, cultural background, and professional experience[136]. - The Board Diversity Policy is published on the Company's website, reflecting its commitment to sustainable and balanced development[137]. Board Composition and Responsibilities - The Board currently comprises a total of seven Directors, including four Executive Directors and three Independent Non-executive Directors[131]. - The Audit Committee was established in December 1998 and has specific written terms of reference detailing its authorities and duties[194]. - The principal duties of the Audit Committee include reviewing interim and annual financial statements and the Company's financial reporting system[198]. - The Company has established various committees to assist in the execution of the Board's responsibilities[193]. Employee and Talent Management - The Group had a total of 6,074 employees as of December 31, 2021, representing an increase of 2.7% from 5,916 employees in 2020[120]. - The Group's remuneration policies aim to ensure fair and competitive packages to retain and attract talent, including salaries, discretionary bonuses, and welfare benefits[120]. - Directors are required to undergo continuous professional development, with training records provided for the period from January 1, 2021, to December 31, 2021[186].

Revenue Growth - The interim report indicates a significant increase in revenue, with a year-on-year growth of 25% to reach HK$500 million[2]. - For the six months ended June 30, 2021, the Group's total revenue was HK$25,908,923,000, a significant increase of 46.2% compared to HK$17,711,476,000 for the same period in 2020[85]. - Freight services revenue reached HK$2,538,928,000, up 90.1% from HK$1,334,837,000 in 2020[85]. - Commodity trading revenue surged to HK$21,840,527,000, representing a 45.9% increase from HK$14,990,097,000 in the previous year[85]. - Revenue from logistics services was HK$862,432,000, reflecting a growth of 8.5% compared to HK$794,913,000 in 2020[85]. - The geographical breakdown shows that revenue from the PRC (including Hong Kong and Taiwan) was HK$18,309,605,000, an increase of 39.8% from HK$13,092,418,000 in 2020[88]. - Revenue from Singapore increased significantly to HK$4,367,006,000, up 177.5% from HK$1,576,558,000 in the previous year[88]. Profitability and Financial Performance - Profit before taxation for the period was HK$218,625, a turnaround from a loss of HK$22,434 in the previous year[35]. - Profit for the period from continuing operations was HK$158,179, compared to a loss of HK$70,497 in 2020, marking a substantial recovery[35]. - Total comprehensive income for the period was HK$128,009, compared to a loss of HK$67,351 in the same period last year[39]. - Earnings per share from continuing operations was HK$1.18, a significant improvement from a loss of HK$0.70 in 2020[42]. - Reportable segment profit before taxation totaled HK$294,725, compared to HK$159,247 for the same period last year, indicating a strong performance improvement[111]. - Total profit before taxation for reportable segments increased to HK$294,725,000, up from HK$159,247,000 in 2020, representing an increase of 85%[114]. Cost Management - The management highlighted a 12% reduction in operational costs due to improved supply chain management[2]. - Finance costs decreased to HK$155,901,000 from HK$242,760,000, a reduction of approximately 36%[119]. - Administrative expenses increased to HK$421,508 from HK$381,660, representing a rise of about 10.4%[35]. - The cost of inventories sold increased to HK$20,844,464,000 from HK$14,871,728,000, reflecting a rise of approximately 40%[122]. Investments and Future Strategies - Investment in new technology development has increased by 30%, focusing on enhancing operational efficiency and customer experience[2]. - The company projects a revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion strategies[2]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[2]. - Future strategies include expanding engineering services and enhancing financial brokerage offerings to capture more market share[111]. Cash Flow and Liquidity - The net cash used in operating activities was HK$1,033,541,000, compared to a net cash generated of HK$2,019,410,000 in the previous year[58]. - Cash and cash equivalents at the end of the period were HK$1,060,207,000, down from HK$1,080,109,000 in the previous year[60]. - The company experienced a net decrease in cash and cash equivalents of HK$163,543,000 during the period[60]. - The Group's working capital requirements are significant, particularly in the commodity marketing and financial services segments, which are financed through revolving short-term trade facilities[152]. Assets and Liabilities - Total assets as of June 30, 2021, amounted to HK$17,843,856, an increase from HK$16,900,628 as of December 31, 2020[45]. - Net current assets increased to HK$889,370 from HK$685,977, reflecting a growth of approximately 29.6%[45]. - Non-current liabilities totaled HK$4,051,690, a decrease from HK$4,202,965, indicating a reduction of about 3.6%[47]. - Total borrowings as of June 30, 2021, amounted to HK$6,039,463,000, a slight decrease from HK$6,100,619,000 as of December 31, 2020[178]. Shareholder Returns - The interim dividend declared is HK$0.05 per share, reflecting a commitment to returning value to shareholders[2]. - No dividends were paid or proposed for ordinary shareholders during the six months ended 30 June 2021 and 2020[126]. Financial Reporting and Compliance - The Group's auditor reported unqualified opinions on the financial statements, indicating no significant issues were raised[72]. - The financial report is prepared in accordance with HKFRSs and reflects the Group's financial position and performance accurately[71]. - The interim financial report reflects the Group's commitment to maintaining robust financial measurement practices[192].