Chu Kong Shipping Enterprises (Group) Co., Ltd. （於香港註冊成立之有限公司） （股份代號：00560） 代表 珠江船務企業（股份）有限公司 張美琪 公司秘書 謹啟 二零二四年十二月十六日 致本公司證券的非登記持有人： 於 珠 江 船 務 企 業（ 股 份 ）有 限 公 司（「 本 公 司 」）網 站 刊發有關非豁免持續關連交易之通函的通知 本公司現謹通知 閣 下， 上 述 的 公 司 通 訊（「公司通訊 」）現 已 登 載 於 本 公 司 網 站 www.cksd.com。 閣下可於本公司網站內閱覽該公司通訊。 倘 閣下擬收取該公司通訊的印刷本，請填妥隨附之申請表格及利用郵寄標籤寄回本公司 之股份過戶登記處－卓佳登捷時有限公司。公司通訊的印刷本將免費發送予 閣下。 請注意，當 閣下填寫及寄回申請表格以索取本公司通訊的印刷本後，即表示 閣下確認 擬收取本公司日後刊發的所有公司通訊的印刷本及所選擇之語言版本。 倘 閣下對本通知有任何查詢，請於星期一至星期五（公眾假期除外）上午9時至下午5時致 電卓佳登捷時有限公司客戶服務熱線，電話號碼為(852) 2980 1333 ...

Chu Kong Shipping Enterprises (Group) Co., Ltd. （於香港註冊成立之有限公司） （股份代號：00560） 敬啟者： 珠 江 船 務 企 業（ 股 份 ）有 限 公 司 有關非豁免持續關連交易之通函 吾等欣然隨函附奉有關非豁免持續關連交易之通函。非豁免持續關連交易之通函以中英文 編製。敬請注意，上述文件之中英文版本亦登載於本公司網站www.cksd.com。 倘 閣下選擇倚賴於本公司網站登載之上述文件版本以代替印刷本，而基於任何理由 閣 下在收取或瀏覽有關文件時遇到困難或如欲收取印刷本；或倘 閣下已收取上述文件之英 文或中文版本而欲收取另一種語言或兩種語言之印刷本，請填妥隨附申請回條甲部，並使 用所提供之已付郵資信封，寄回本公司之股份過戶登記處卓佳登捷時有限公司，地址為香 港夏愨道16號遠東金融中心17樓。 閣下有權隨時向本公司之股份過戶登記處發出合理書面通知，更改選擇收取公司通訊 #之語 言版本及方式。 閣下如欲更改選擇日後收取公司通訊之語言版本及方式，請填妥隨附申 請回條乙部，並使用所提供之已付郵資信封，寄回本公司之股份過戶登記處。 此致 列位股東 台照 代表 ...

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，並明確表示概不會就本公告全部或任何部份內容而產生或因依賴該等內容 而引致之任何損失承擔任何責任。 – 1 – Chu Kong Shipping Enterprises (Group) Co., Ltd. 1. 「動議： (a) 謹此確認、追認及批准簽署總供油協議、建議年度上限及項下之擬進行交易 （已於二零二四年十二月十六日的通函內作出定義及詳述）及批准據此擬進行 的交易；及 (b) 本公司任何一名或多名董事謹此獲授權為使總供油協議、建議年度上限及項 下之擬進行交易進行一切彼等認為屬必須之有關行動及事宜、簽署及簽立一 切有關文件（包括加蓋本公司印章）及採取一切彼等認為屬必須、適合或適宜 之有關步驟。」 （於香港註冊成立之有限公司） （股份代號：00560） 股東大會通告 茲通告珠江船務企業（股份）有限公司（「本公司」）謹定於二零二五年一月九日（星期四） 下午三時正（香港時間）假座香港金鐘金鐘道 95號統一中心10樓統一會議中心舉行股東大會 （「股東大會」），藉以考慮並酌情通過（不論有否作出修訂）下列決 ...

此乃要件 請即處理 閣下如對本通函任何方面或應採取之行動有任何疑問，應諮詢 閣下之持牌證券交易商、 銀行經理、律師、執業會計師或其他專業顧問。 閣下如已將名下所有珠江船務企業（股份）有限公司（「本公司」）股份售出或轉讓，應立即將 本通函連同隨附之委任表格送交買方或承讓人或經手買賣或轉讓之銀行、持牌證券交易商 或其他代理商，以便轉交買方或承讓人。 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通函之內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示概不就因本通函全部或任何部分內容而產生 或因倚賴該等內容而引致之任何損失承擔任何責任。 Chu Kong Shipping Enterprises (Group) Co., Ltd. （於香港註冊成立之有限公司） （股份代號：00560） (1) 非豁免持續關連交易 及 (2) 股東大會通告 獨立財務顧問 本封面頁所用詞彙與本通函所界定者具有相同涵義。 董事會函件（定義見內文）載於本通函第4頁至12頁。獨立董事委員會函件載於本通函第13 頁至14頁。獨立財務顧問函件則載於本通函第 15頁至26頁，當中載有其就非豁免持續關 連交易向獨立董事委員會及獨立 ...

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，並明確表示概不會就本公告全部或任何 部份內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 （於香港註冊成立之有限公司） （股份代號：00560） 有關租賃協議之 須予披露交易 租賃協議 董事會欣然宣佈，於二零二四年十二月六日（交易時段後），承租人（本公司之 間接全資附屬公司）與出租人就租賃該物業訂立租賃協議，用作承租人於中國內 地之主要營業地點，自二零二五年一月一日起至二零四四年十二月三十一日（包 括首尾兩日）。 上市規則之涵義 根據香港財務報告準則第 16 號，由於訂立租賃協議，本集團須於本公司之綜合 財務報表內確認與租賃協議有關之使用權資產，及根據上市規則，租賃協議項下 擬進行之交易將視作本集團之一項資產收購。 由於租賃協議項下擬進行之交易（按本集團根據香港財務報告準則第 16 號確認 之使用權資產價值計算）之適用最高百分比率（定義見上市規則）超過 5%但低 於 25%。因此訂立租賃協議構成本公司一項須予披露交易，並須遵守上市規則第 14 章項下的通知及公告規定，但根據上市規則第 14 章 ...

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。 （ 於 香 港 註 冊 成 立 之 有 限 公 司 ） （ 股 份 代 號 ： 00560） 由於獲豁免持續關連交易之建議年度上限之一項或多項適用百分比率按年度基 準預期將超過 0.1%但低於 5%，因此獲豁免持 續關連交易僅須遵守上市規則第 14A 章 項下 申 報、年 度審 閱 及公 告 之規 定，但 獲豁 免 遵守 該 條上 市 規則 項 下之 獨 立股 東 批准 規 定。 由於非豁免持續關連交易之建議年度上限之一項或多項適用百分比率按年度基 準超過 5%及超過 10,000,000 港元，故非豁免持續關連交易須遵守上市規則第 14A 章 項下 申 報、 年度 審 閱、 公 告及 獨立 股 東批 准 之規 定。 - 1 - 持續關連交易 概 要 謹此提述本公司於二零二 一 年 十 一 月 三 十 日 、 二 零 二 一 ...

[Chairman's Report](index=2&type=section&id=Chairman%27s%20Report) [Review](index=3&type=section&id=Review) In the first half of 2024, the Group significantly increased bulk cargo volume and cross-border passenger traffic by accelerating port and shipping logistics, optimizing passenger routes, and transforming traditional businesses, with the "Oriental Pearl" cruise business reaching a profit inflection point - Global economic recovery remains challenging, with limited trade recovery, pressure on Guangdong-Hong Kong waterway passenger transport, and a decline in local Hong Kong ferry passenger volume due to residents traveling north for consumption[3](index=3&type=chunk) - The Group focused on overcoming challenges, accelerating the layout of port and shipping logistics businesses, and significantly increasing **bulk cargo volume**[3](index=3&type=chunk) - Cross-border passenger transport maintained growth due to the recovery of visitors to Hong Kong and optimized route adjustments[3](index=3&type=chunk) - Pearl River Transit deepened cooperation with major engineering project companies, advanced the Hong Kong International Airport engineering material supply project, and actively expanded new business in the Southeast Asian market[4](index=4&type=chunk) - Pearl River Transit fully deployed **10 LNG multi-purpose vessels**, embracing green shipping principles[4](index=4&type=chunk) - Oriental Pearl Cruise Co., Ltd. vigorously expanded charter and high-end tourism businesses, successfully reaching a **profit inflection point**[4](index=4&type=chunk) [Outlook](index=5&type=section&id=Outlook) For the second half, the Group will focus on innovation, reform, and strategic optimization to unlock existing potential and penetrate new markets, including engineering logistics, overseas expansion, enhanced cross-border passenger services, and elevated marine tourism brand value - H2 strategy: innovation-driven, deepened reform, optimized layout, and new development, tapping existing potential and seeking breakthroughs in incremental markets[5](index=5&type=chunk) - Continuously focusing on the engineering logistics market, researching major HKSAR government projects, exploring M&A for network optimization, and transforming into a comprehensive logistics service provider[5](index=5&type=chunk) - Actively seeking overseas passenger and cargo investment opportunities, accelerating the overseas logistics network layout, exploring new service points in Indonesia and Thailand, entering new energy vehicle logistics, and expanding along the "Belt and Road" initiative[5](index=5&type=chunk) - Improving cross-border passenger service quality, deepening integrated control of port production factors, exploring a "single control center, multiple port operation points" model, and promoting additional immigration channels at Hong Kong International Airport SkyPier[6](index=6&type=chunk) - Enhancing cultural tourism brand value, consolidating ferry business revenue, continuously exploring the Victoria Harbour tourism market, and promoting synergy between cross-border passenger transport and Hong Kong's cultural tourism industry[6](index=6&type=chunk) [Acknowledgements](index=7&type=section&id=Acknowledgements) Chairman Liu Guanghui, on behalf of the Board, extended sincere gratitude to investors, partners, management, and all employees, pledging continued efforts to create greater shareholder value - Chairman Liu Guanghui, on behalf of the Board, expressed gratitude to investors, partners, management, and all employees[7](index=7&type=chunk) - The Group is committed to continuing efforts to create greater value for shareholders[7](index=7&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=8&type=section&id=Business%20Review) For the six months ended June 30, 2024, the Group's consolidated turnover increased by **12.6% to HKD 1.389 billion**, with profit attributable to equity holders rising by **14.9% to HKD 67.115 million**, driven by new business, optimized routes, and strong performance in fuel supply and corporate services despite a slowdown in international demand and declining Hong Kong container throughput Key Financial Performance H1 2024 | Indicator | H1 2024 (HKD Thousands) | H1 2023 (HKD Thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Consolidated Turnover | 1,388,711 | 1,233,130 | +12.6% | | Profit Attributable to Equity Holders of the Company | 67,115 | 58,387 | +14.9% | - International market demand continued to slow, investment activities were sluggish, trade recovery was slow, and Hong Kong's container throughput further declined year-on-year[8](index=8&type=chunk) - The Group continued to promote corporate reform, capturing market share in the Greater Bay Area and overseas markets, achieving high-quality development[8](index=8&type=chunk) [I. Port and Shipping Logistics Business](index=9&type=section&id=I.%20Port%20and%20Shipping%20Logistics%20Business) Amidst a sluggish Hong Kong transport and logistics sector, the port and shipping logistics business achieved significant growth in bulk cargo transport and handling volumes, with stable container transport, by developing new businesses, optimizing structures, and specializing terminals to reduce costs and secure major engineering logistics projects Port and Shipping Logistics Business Indicators (H1 2024) | Indicator | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Container Transport Volume (TEU) | 667,000 | 646,000 | +3.3% | | Bulk Cargo Transport Volume (Revenue Tons) | 614,000 | 202,000 | +204.0% | | Container Land Haulage Volume (TEU) | 92,000 | 90,000 | +2.2% | | Container Handling Volume (TEU) | 494,000 | 527,000 | -6.3% | | Bulk Cargo Handling Volume (Revenue Tons) | 4,191,000 | 3,222,000 | +30.1% | - Pearl River Transit maintained stable container transport and significantly increased **bulk cargo transport volume** year-on-year, driven by engineering logistics, through optimizing traditional business structures, accelerating transformation, and developing new businesses[12](index=12&type=chunk) - Zhaoqing area's bulk cargo handling volume increased by **46.1%** year-on-year, Sihui Port successfully applied for temporary bulk cargo handling channel qualifications, and Kangzhou Port focused on developing sand and gravel clients to create a specialized bulk building materials handling terminal[16](index=16&type=chunk) - Hong Kong area's business volume significantly decreased, but Pearl River Transit utilized Tuen Mun warehouse and wharf berths to develop steel, new energy vehicle handling, and air freight import/export businesses[21](index=21&type=chunk) - Beicun Terminal, in collaboration with Pearl River Transit, reduced integrated logistics costs through resource integration, successfully undertaking large-scale engineering logistics projects such as subway rail components and municipal salvage vessels, aiming to become a specialized terminal serving Hong Kong's public and municipal engineering projects[22](index=22&type=chunk) [II. Passenger Transport Business](index=16&type=section&id=II.%20Passenger%20Transport%20Business) Passenger transport business gradually recovered, with a significant increase in cross-border passenger volume, while local ferry passenger volume declined due to Hong Kong residents traveling north for consumption and adverse weather; Pearl River Passenger Transport successfully resumed and opened new routes, deepened its Hong Kong Airport strategy, and its marine tourism business saw a substantial increase in passenger traffic, with the "Oriental Pearl" cruise business reaching a profit inflection point Passenger Transport Business Indicators (H1 2024) | Indicator | 2024 (Thousand Passengers) | 2023 (Thousand Passengers) | Change | | :--- | :--- | :--- | :--- | | Agency Passenger Volume | 877 | 647 | +35.5% | | Terminal Service Passenger Volume | 586 | 423 | +38.5% | | Local Ferry Passenger Volume | 5,751 | 6,333 | -9.2% | - Pearl River Passenger Transport successfully resumed the **"Guangzhou Nansha – Hong Kong International Airport"** route and opened the **"Guangzhou Pazhou – Hong Kong Macau Ferry Terminal"** route[10](index=10&type=chunk) - Pearl River Passenger Transport continued to deepen its Hong Kong Airport strategy, successfully renewing the SkyPier operation management contract and winning the bid again for the Hong Kong International Airport self-service check-in project[26](index=26&type=chunk) - Oriental Pearl marine tourism business accumulated **31,000 passengers**, a significant **47.6% increase** year-on-year, enhancing brand awareness through berthing operations at Central Pier 8[27](index=27&type=chunk) - Hong Kong-Zhuhai-Macao Bridge Shuttle Bus business passenger volume reached **9,697,000 passengers**, exceeding pre-pandemic levels for the same period[28](index=28&type=chunk) [III. Fuel Supply Business](index=19&type=section&id=III.%20Fuel%20Supply%20Business) In fuel supply, Xin'gang Petroleum achieved significant growth in diesel sales by securing favorable prices and continuously providing bunkering services to HKSAR government vessels, though fuel oil sales declined notably due to increased market competition Fuel Supply Business Indicators (H1 2024) | Indicator | 2024 (Tons) | 2023 (Tons) | Change | | :--- | :--- | :--- | :--- | | Diesel Sales Volume (Tons) | 47,000 | - | +38.2% | | Fuel Oil Sales Volume (Tons) | 102,000 | - | -75.2% | - Xin'gang Petroleum successfully secured more favorable diesel prices, significantly increasing **diesel sales volume** to external customers[29](index=29&type=chunk) - Xin'gang Petroleum continued to provide bunkering services to HKSAR government vessels, including marine police, customs, and fire services, with highly recognized service quality[29](index=29&type=chunk) [IV. Corporate and Other Businesses](index=20&type=section&id=IV.%20Corporate%20and%20Other%20Businesses) In corporate and other businesses, Zhuhai-Macau Engineering Technology Co., Ltd. saw increased revenue and profit year-on-year due to a new water pipeline project contract with Sands Group, and will continue to leverage its technical advantages to actively develop long-term stable new projects - Zhuhai-Macau Engineering Technology Co., Ltd. experienced year-on-year increases in revenue and profit, primarily due to securing a new phase contract for the **Sands Group water pipeline project**[30](index=30&type=chunk) - Zhuhai-Macau Engineering will continue to leverage its technical advantages, strengthen existing businesses, closely monitor bidding projects from Macau government agencies and enterprises, and actively develop new projects to enhance sustainable profitability[30](index=30&type=chunk) [Other Information](index=21&type=section&id=Other%20Information) [Liquidity, Financial Resources and Capital Structure](index=21&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group continuously monitors its liquidity and financial resources, maintaining a robust financial position with a **current ratio of 2.1**, a **capital gearing ratio of 8.7%**, and a **debt ratio of 22.5%** as of June 30, 2024, possessing sufficient cash and bank credit for future operations and expansion Liquidity and Capital Structure Indicators | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Credit Facilities (HKD) | 1,185,000,000 (HKD) + 131,412,000 (RMB equivalent) | 1,186,650,000 (HKD) + 135,527,000 (RMB equivalent) | | Current Ratio | 2.1 | 1.9 | | Cash and Cash Equivalents (HKD) | 963,975,000 | 1,038,838,000 | | Cash as % of Total Assets | 21.4% | 22.8% | | Capital Gearing Ratio | 8.7% | 8.8% | | Debt Ratio | 22.5% | 23.1% | - The Group possesses sufficient funds to meet future business operations, expansion, and general development capital requirements[31](index=31&type=chunk) [Bank Loans and Asset Pledges](index=22&type=section&id=Bank%20Loans%20and%20Asset%20Pledges) As of June 30, 2024, the Group's total bank loans amounted to **HKD 331,412,000**, comprising unsecured floating-rate loans from Hong Kong banks and secured floating-rate loans from PRC banks, collateralized by land use rights, investment properties, and property, plant, and equipment Bank Loan Composition | Bank Loans | June 30, 2024 (HKD Thousands) | December 31, 2023 (HKD Thousands) | | :--- | :--- | :--- | | Hong Kong Banks (HKD) | 200,000,000 | 200,000,000 | | PRC Banks (RMB equivalent in HKD) | 131,412,000 | 135,527,000 | - PRC bank loans are secured by the Group's land use rights, investment properties, and property, plant, and equipment[32](index=32&type=chunk) - Hong Kong bank loans are at floating interest rates and are unsecured[32](index=32&type=chunk) [Currency Structure](index=22&type=section&id=Currency%20Structure) The Group's cash and cash equivalents are primarily denominated in HKD, RMB, and USD, held in reputable banks, resulting in minimal short-term foreign exchange risk - The Group's cash and cash equivalents are primarily denominated in HKD, RMB, and USD, with minimal short-term foreign exchange risk[33](index=33&type=chunk)[39](index=39&type=chunk) [Capital Commitments](index=23&type=section&id=Capital%20Commitments) As of June 30, 2024, the Group's outstanding capital commitments amounted to **HKD 9,188,000**, with sufficient financial resources to meet these obligations Capital Commitments | Item | June 30, 2024 (HKD Thousands) | December 31, 2023 (HKD Thousands) | | :--- | :--- | :--- | | Outstanding Capital Commitments | 9,188 | 15,227 | - The Group has sufficient financial resources to cover capital commitment expenditures[34](index=34&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Joint Ventures and Associates](index=23&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Joint%20Ventures%20and%20Associates) For the six months ended June 30, 2024, the Group did not undertake any other significant acquisitions or disposals beyond those disclosed in the interim report - The Group did not undertake any other significant acquisitions or disposals of subsidiaries, joint ventures, or associates during the period[35](index=35&type=chunk) [Material Investments](index=23&type=section&id=Material%20Investments) For the six months ended June 30, 2024, the Group held no other material investments beyond those disclosed in the interim report - The Group held no other material investments during the period[36](index=36&type=chunk) [Contingent Liabilities](index=23&type=section&id=Contingent%20Liabilities) As of June 30, 2024, the Group had no material contingent liabilities - The Group had no material contingent liabilities at the end of the period[37](index=37&type=chunk) [Staff and Remuneration](index=23&type=section&id=Staff%20and%20Remuneration) As of June 30, 2024, the Group employed **2,156 staff** with employee costs of **HKD 282,487,000**, with remuneration and benefits determined by job responsibilities and market conditions, alongside various benefits and training Staff and Remuneration Data | Indicator | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Number of Employees | 2,156 | 2,207 | | Employee Costs (HKD Thousands) | 282,487 | 289,182 | - Employee remuneration and benefits include basic salary, discretionary bonuses, medical and insurance schemes, pension schemes, and share option schemes, along with staff training[38](index=38&type=chunk) [Foreign Exchange Risk](index=24&type=section&id=Foreign%20Exchange%20Risk) The Group's daily operations and investment activities are concentrated in Guangdong-Hong Kong-Macao, with revenue and expenditure primarily in HKD, supplemented by RMB and USD, resulting in minimal short-term foreign exchange risk under Hong Kong's linked exchange rate system - The Group's daily operations and investment activities are concentrated in Guangdong-Hong Kong-Macao, with revenue and expenditure primarily in HKD, supplemented by RMB and USD[39](index=39&type=chunk) - Under the stable Hong Kong Linked Exchange Rate System, the Group does not anticipate significant foreign exchange risk in the short term[39](index=39&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=24&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20the%20Company%27s%20Listed%20Securities) During the period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - Neither the Company nor any of its subsidiaries purchased or sold any of the Company's listed securities, nor redeemed any shares during the period[40](index=40&type=chunk) [Directors' Securities Transactions and Interests Held](index=24&type=section&id=Directors%27%20Securities%20Transactions%20and%20Interests%20Held) The Company has adopted a code of conduct for directors' securities transactions no less stringent than the Listing Rules' Model Code, which all directors complied with during the period; as of June 30, 2024, the Company was unaware of any discloseable interests or short positions in shares, underlying shares, or debentures held by directors and chief executives - The Company has adopted the Model Code as the standard for directors' securities transactions, and all directors complied with it during the period[41](index=41&type=chunk) - As of June 30, 2024, the Company was unaware of any interests or short positions in shares, underlying shares, or debentures held by directors and chief executives that require disclosure under the Securities and Futures Ordinance[42](index=42&type=chunk) [Share-linked Agreements](index=25&type=section&id=Share-linked%20Agreements) The Company has a share option scheme valid until December 7, 2025, with a total of **108,000,000 shares** available for issuance; all previously granted share options have lapsed due to unmet performance targets, employee resignations, or retirements, with no new options granted or other share-linked agreements entered into during the period - The share option scheme is valid until December 7, 2025, with a total of **108,000,000 shares** available for issuance, representing **9.6%** of the Company's issued shares[45](index=45&type=chunk) - All previously granted share options have lapsed due to unmet performance targets, employee resignations, or retirements[45](index=45&type=chunk) - The Company did not grant any share options under the scheme, nor entered into any other share-linked agreements during the period[45](index=45&type=chunk) [Major Shareholders' Interests or Short Positions in Company Shares](index=26&type=section&id=Major%20Shareholders%27%20Interests%20or%20Short%20Positions%20in%20Company%20Shares) As of June 30, 2024, Chu Kong Shipping Enterprises (Group) Company Limited and its wholly-owned Guangdong Provincial Port & Shipping Group Co., Ltd. were the Company's major shareholders, beneficially owning and deemed to own **71.0%** of the shares in long positions, respectively Major Shareholder Holdings (June 30, 2024) | Shareholder Name | Capacity/Nature of Interest | Number of Shares (L) | Percentage of Holding | | :--- | :--- | :--- | :--- | | Chu Kong Shipping Enterprises (Group) Company Limited | Beneficial Owner | 796,035,520 | 71.0% | | Guangdong Provincial Port & Shipping Group Co., Ltd. | Interest of Controlled Corporation | 796,035,520 | 71.0% | - Guangdong Provincial Port & Shipping Group wholly owns Chu Kong Shipping Enterprises (Group), and is therefore deemed to have an interest in all shares held by it[48](index=48&type=chunk) [Interim Dividend](index=28&type=section&id=Interim%20Dividend) The Board declared an interim dividend of **HKD 0.02 per ordinary share** for 2024, totaling approximately **HKD 22,423,000**, payable in cash, with the record date set for September 20, 2024 Interim Dividend Declaration | Item | 2024 | 2023 | | :--- | :--- | :--- | | Interim Dividend (per ordinary share) | 2 HK Cents | Zero HK Cents | | Total (HKD) | 22,423,000 | Zero | - The interim dividend is expected to be paid in cash, with the record date on **September 20, 2024**[49](index=49&type=chunk) [Closure of Register of Members](index=28&type=section&id=Closure%20of%20Register%20of%20Members) To ensure eligibility for the interim dividend, the Company will suspend share transfer registration from September 17 to September 20, 2024, requiring shareholders to complete transfers before this period - Share transfer registration will be suspended from **September 17 to September 20, 2024**[50](index=50&type=chunk) - Shareholders must complete share transfers by **4:30 p.m. on September 16, 2024**, to be eligible for the interim dividend[50](index=50&type=chunk) [Audit Committee Review](index=28&type=section&id=Audit%20Committee%20Review) The Company's Audit Committee and independent auditor KPMG have reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2024 - The Audit Committee and independent auditor KPMG have reviewed the Group's unaudited condensed consolidated interim financial information for the first half of 2024[51](index=51&type=chunk) - The interim financial report was prepared in accordance with HKAS 34 and reviewed by the independent auditor in accordance with HKSRE 2410[51](index=51&type=chunk) [Corporate Governance](index=29&type=section&id=Corporate%20Governance) The Company has adopted and complied with the Corporate Governance Code throughout the period, with the re-appointment of independent non-executive directors Mr. Chan Ki Cheung and Ms. Yau Lai Man, whose terms exceeded nine years, approved by shareholders via independent resolutions to ensure their independence - The Company has consistently complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the period[52](index=52&type=chunk) - Independent non-executive directors Mr. Chan Ki Cheung and Ms. Yau Lai Man, whose terms exceeded nine years, had their re-appointments approved by shareholders via independent resolutions, with the Board confident in their continued independence[52](index=52&type=chunk) [Directors](index=30&type=section&id=Directors) Mr. Zou Bingxing resigned as an independent non-executive director and from related committee positions due to retirement, effective April 1, 2024; as of this interim report date, the executive directors are Liu Guanghui, Zhou Jun, Liu Wuwei; non-executive director is Zhong Yan; and independent non-executive directors are Chan Ki Cheung, Yau Lai Man, and Chan Chung Ni - Mr. Zou Bingxing resigned as an independent non-executive director and member of related committees due to retirement, effective **April 1, 2024**[53](index=53&type=chunk) - The current executive directors are Mr. Liu Guanghui, Mr. Zhou Jun, and Mr. Liu Wuwei; the non-executive director is Ms. Zhong Yan; and the independent non-executive directors are Mr. Chan Ki Cheung, Ms. Yau Lai Man, and Mr. Chan Chung Ni[53](index=53&type=chunk) [Review Report to the Board of Directors](index=31&type=section&id=Review%20Report%20to%20the%20Board%20of%20Directors) [Introduction](index=31&type=section&id=Introduction) KPMG has reviewed Chu Kong Shipping Enterprises (Group) Company Limited's interim financial report for the six months ended June 30, 2024, prepared in accordance with the HKEX Listing Rules and HKAS 34, with the Board responsible for its preparation and presentation - KPMG has reviewed the Company's interim financial report for the six months ended June 30, 2024[54](index=54&type=chunk) - The interim financial report was prepared in accordance with the Listing Rules of The Stock Exchange of Hong Kong Limited and HKAS 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants[54](index=54&type=chunk) - The directors are responsible for the preparation and presentation of the interim financial report in accordance with HKAS 34[54](index=54&type=chunk) [Scope of Review](index=32&type=section&id=Scope%20of%20Review) The review was conducted in accordance with HKSRE 2410, primarily involving inquiries and analytical procedures, with a scope narrower than an audit, thus no audit opinion is expressed - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[55](index=55&type=chunk) - The scope of a review is substantially less than that of an audit conducted in accordance with Hong Kong Standards on Auditing, and consequently, no audit opinion is expressed[55](index=55&type=chunk) [Conclusion](index=32&type=section&id=Conclusion) Based on the review, the auditor found no matters suggesting that the interim financial report as of June 30, 2024, was not prepared in all material respects in accordance with HKAS 34 - The auditor has not found anything that causes them to believe that the interim financial report as of June 30, 2024, is not prepared in all material respects in accordance with HKAS 34[56](index=56&type=chunk) [Consolidated Statement of Financial Position](index=33&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were **HKD 4,510,691 thousand**, total equity **HKD 3,495,375 thousand**, and total liabilities **HKD 1,015,316 thousand**, with net current assets of **HKD 793,983 thousand**, indicating a robust financial position Consolidated Statement of Financial Position Summary (HKD Thousands) | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 2,961,964 | 3,029,184 | | Current assets | 1,548,727 | 1,517,162 | | **Total assets** | **4,510,691** | **4,546,346** | | **Equity** | | | | Share capital | 1,415,118 | 1,415,118 | | Reserves | 1,766,982 | 1,771,788 | | Non-controlling interests | 313,275 | 311,136 | | **Total equity** | **3,495,375** | **3,498,042** | | **Liabilities** | | | | Non-current liabilities | 260,572 | 270,081 | | Current liabilities | 754,744 | 778,223 | | **Total liabilities** | **1,015,316** | **1,048,304** | | Net current assets | 793,983 | 738,939 | [Consolidated Statement of Profit or Loss](index=35&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2024, the Group's turnover was **HKD 1,388,711 thousand**, a **12.6%** year-on-year increase; profit for the period was **HKD 71,506 thousand**, up **14.8%**, with profit attributable to equity holders of the Company at **HKD 67,115 thousand**, and basic earnings per share at **HKD 0.0599** Consolidated Statement of Profit or Loss Summary (HKD Thousands) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Turnover | 1,388,711 | 1,233,130 | | Gross profit | 108,153 | 122,507 | | Profit from operations | 64,723 | 65,431 | | Profit before income tax | 85,107 | 76,750 | | Income tax expense | (13,601) | (14,455) | | **Profit for the period** | **71,506** | **62,295** | | Profit attributable to equity holders of the Company | 67,115 | 58,387 | | Profit attributable to non-controlling interests | 4,391 | 3,908 | | Basic and diluted earnings per share (HK Cents) | 5.99 | 5.21 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=36&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group's profit for the period was **HKD 71,506 thousand**; affected by currency exchange differences, other comprehensive income was a negative **HKD 18,115 thousand**, resulting in a total comprehensive income for the period of **HKD 53,391 thousand**, a significant improvement from the negative **HKD 6,043 thousand** in the prior year Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (HKD Thousands) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit for the period | 71,506 | 62,295 | | Exchange differences on translating foreign operations (subsidiaries) | (15,845) | (56,555) | | Exchange differences on translating foreign operations (joint ventures and associates) | (2,270) | (11,783) | | Other comprehensive income for the period | (18,115) | (68,338) | | **Total comprehensive income for the period** | **53,391** | **(6,043)** | | Total comprehensive income attributable to equity holders of the Company | 51,252 | (5,422) | | Total comprehensive income attributable to non-controlling interests | 2,139 | (621) | [Consolidated Statement of Changes in Equity](index=37&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2024, total equity attributable to equity holders of the Company was **HKD 3,182,100 thousand**, a slight decrease from **HKD 3,186,906 thousand** on January 1, 2024; profit for the period was **HKD 67,115 thousand**, but total equity changed due to currency exchange differences and dividend payments Consolidated Statement of Changes in Equity Summary (HKD Thousands) | Item | January 1, 2024 | Profit for the period | Exchange differences on translating foreign operations (subsidiaries) | Exchange differences on translating foreign operations (joint ventures and associates) | Transfer to reserves | Total comprehensive income for the period | 2023 Final Dividend | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total attributable to owners of the Company | 3,186,906 | 67,115 | (13,754) | (2,109) | – | 51,252 | (56,058) | 3,182,100 | | Non-controlling interests | 311,136 | 4,391 | (2,091) | (161) | – | 2,139 | – | 313,275 | | **Total equity** | **3,498,042** | **71,506** | **(15,845)** | **(2,270)** | **–** | **53,391** | **(56,058)** | **3,495,375** | [Consolidated Statement of Cash Flows](index=39&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2024, the Group generated **HKD 9,561 thousand** net cash from operating activities and **HKD 22,446 thousand** net cash from investing activities, while using **HKD 85,363 thousand** net cash in financing activities; cash and cash equivalents at period-end were **HKD 930,649 thousand**, a decrease of **HKD 53,356 thousand** from the beginning of the period Consolidated Statement of Cash Flows Summary (HKD Thousands) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net cash generated from operating activities | 9,561 | 80,056 | | Net cash generated from/(used in) investing activities | 22,446 | (40,520) | | Net cash used in financing activities | (85,363) | (60,599) | | Net decrease in cash and cash equivalents | (53,356) | (21,063) | | Cash and cash equivalents at beginning of period | 985,736 | 1,032,375 | | Effect of foreign exchange rate changes | (1,731) | (21,338) | | **Cash and cash equivalents at end of period** | **930,649** | **989,974** | [Notes to the Unaudited Interim Financial Report](index=41&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) [1 General Information](index=41&type=section&id=1%20General%20Information) Chu Kong Shipping Enterprises (Group) Company Limited is a Hong Kong-listed company primarily engaged in high-speed waterway passenger transport management in Guangdong-Hong Kong-Macao, inland river terminal operations in mainland China and Hong Kong, cargo transport, warehousing, fuel supply, property and equipment maintenance, and ferry services - The Company is a limited company incorporated in Hong Kong and listed on the Main Board of The Stock Exchange of Hong Kong Limited[68](index=68&type=chunk) - The Group's principal activities include high-speed waterway passenger transport management in Guangdong-Hong Kong-Macao, inland river terminal operation and management in mainland China and Hong Kong, cargo transport, warehousing, fuel supply, property and equipment maintenance, and ferry and vessel leasing services[68](index=68&type=chunk) [2 Basis of Preparation](index=41&type=section&id=2%20Basis%20of%20Preparation) This interim financial report was prepared in accordance with the HKEX Listing Rules and HKAS 34, reviewed by KPMG, and adopts the same accounting policies as the 2023 annual financial statements, comprising condensed consolidated financial statements and selected explanatory notes - This interim financial report has been prepared in accordance with the applicable disclosure provisions of the Listing Rules of The Stock Exchange of Hong Kong Limited and HKAS 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants[69](index=69&type=chunk) - This interim financial report has been prepared in accordance with the same accounting policies adopted in the 2023 annual financial statements and has been reviewed by KPMG[69](index=69&type=chunk)[70](index=70&type=chunk) [3 Changes in Accounting Policies](index=43&type=section&id=3%20Changes%20in%20Accounting%20Policies) Several revised HKFRSs, effective for the current accounting period, including liability classification, non-current liabilities with covenants, lease liabilities in sale and leaseback, and supplier finance arrangement disclosures, had no material impact on the Group's current or prior period's results and financial position - Several revised Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants became effective for the Group's current accounting period for the first time[72](index=72&type=chunk) - These developments had no material impact on the preparation or presentation of the Group's results and financial position for the current or prior periods[73](index=73&type=chunk) [4 Financial Risk Management](index=44&type=section&id=4%20Financial%20Risk%20Management) The Group's operating and financing activities are exposed to market risks (currency and interest rate), credit risk, and liquidity risk; risk management policies have remained unchanged since year-end, and the carrying amounts of financial assets and liabilities are reasonable approximations of their fair values - The Group's operating and financing activities are exposed to market risks (including currency risk and interest rate risk), credit risk, and liquidity risk[74](index=74&type=chunk) - There have been no changes in risk management policies since the end of last year[74](index=74&type=chunk) - The carrying amounts of financial assets and financial liabilities, net of impairment allowances where applicable, are reasonable approximations of their fair values[75](index=75&type=chunk) [5 Critical Accounting Estimates and Judgements](index=44&type=section&id=5%20Critical%20Accounting%20Estimates%20and%20Judgements) Preparing the condensed consolidated interim financial information requires management to make judgments, estimates, and assumptions affecting the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses, with key sources consistent with the 2023 annual financial statements - The preparation of the condensed consolidated interim financial information requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses[76](index=76&type=chunk) - The key sources of critical accounting estimates and judgments are the same as those applied in the annual financial statements for the year ended December 31, 2023[76](index=76&type=chunk) [6 Segment Information](index=45&type=section&id=6%20Segment%20Information) The Group categorizes its businesses into five segments—cargo transport, cargo handling and warehousing, passenger transport, fuel supply, and corporate and other businesses—based on internal reports reviewed by the chief operating decision-maker; segment performance is assessed by profit before income tax, with inter-segment sales conducted on similar terms - The Group's businesses are classified into five main segments: cargo transport, cargo handling and warehousing, passenger transport, fuel supply, and corporate and other businesses[77](index=77&type=chunk) - The Company's executive directors assess the operating segment performance based on profit before income tax expense for each segment[77](index=77&type=chunk) Segment Turnover and Profit Before Income Tax H1 2024 (HKD Thousands) | Segment | Turnover (from external customers) | Segment profit before income tax | | :--- | :--- | :--- | | Cargo transport | 830,052 | 12,494 | | Cargo handling and warehousing | 177,994 | 27,076 | | Passenger transport | 171,319 | 22,298 | | Fuel supply | 201,154 | 4,738 | | Corporate and other businesses | 8,192 | 18,501 | | **Total** | **1,388,711** | **85,107** | [7 Property, Plant and Equipment and Land Use Rights](index=48&type=section&id=7%20Property%2C%20Plant%20and%20Equipment%20and%20Land%20Use%20Rights) For the six months ended June 30, 2024, the Group recognized an increase in right-of-use assets of **HKD 4,433 thousand**, incurred **HKD 17,604 thousand** in property, plant, and equipment acquisition costs, and recorded a gain of **HKD 1,570 thousand** from the disposal of property, plant, and equipment Changes in Property, Plant and Equipment and Land Use Rights (HKD Thousands) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Additions to right-of-use assets | 4,433 | 5,870 | | Cost of additions to property, plant and equipment | 17,604 | 22,428 | | Gain on disposal of property, plant and equipment | 1,570 | 270 | [8 Trade and Other Receivables](index=49&type=section&id=8%20Trade%20and%20Other%20Receivables) As of June 30, 2024, the Group's total trade and other receivables increased to **HKD 564,097 thousand** from **HKD 457,099 thousand** at the end of 2023; net trade receivables were **HKD 364,030 thousand**, primarily due within three months, and amounts due from related parties were unsecured and interest-free Total Trade and Other Receivables (HKD Thousands) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Trade receivables, net | 364,030 | 291,841 | | Other receivables | 200,067 | 165,258 | | **Total** | **564,097** | **457,099** | Trade Receivables Ageing Analysis (HKD Thousands) | Ageing | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Within 3 months | 301,374 | 244,638 | | 4 to 6 months | 28,722 | 25,018 | | 7 to 12 months | 14,203 | 2,104 | | Over 12 months | 28,495 | 28,515 | | Less: Loss allowance | (8,764) | (8,434) | - Trade receivables from related parties are unsecured, interest-free, and on similar collection terms as those from third parties[87](index=87&type=chunk) [9 Share Capital](index=51&type=section&id=9%20Share%20Capital) As of June 30, 2024, and December 31, 2023, the Company's issued and fully paid ordinary shares remained unchanged at **1,121,167 thousand shares**, with share capital at **HKD 1,415,118 thousand** Issued and Fully Paid Ordinary Shares | Item | Number of Shares (Thousand Shares) | Share Capital (HKD Thousands) | | :--- | :--- | :--- | | As at June 30, 2024 and December 31, 2023 | 1,121,167 | 1,415,118 | [10 Borrowings](index=51&type=section&id=10%20Borrowings) As of June 30, 2024, the Group's total borrowings amounted to **HKD 331,412 thousand**, comprising **HKD 82,108 thousand** in fixed-rate borrowings and **HKD 249,304 thousand** in floating-rate borrowings; secured bank loans are collateralized by land use rights, investment properties, and property, plant, and equipment Borrowings Composition (HKD Thousands) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Fixed-rate borrowings: bank loans, secured | 82,108 | 82,697 | | Floating-rate borrowings: bank loans, unsecured | 200,000 | 200,000 | | Floating-rate borrowings: bank loans, secured | 49,304 | 52,830 | | **Total** | **331,412** | **335,527** | | Less: Current portion | (218,616) | (217,402) | | **Non-current portion** | **112,796** | **118,125** | - Secured bank loans are collateralized by the Group's land use rights, investment properties, and property, plant, and equipment[91](index=91&type=chunk) - Bank loan interest rates include HIBOR plus **0.25% to 0.4%** and LPR minus **0.5%**[92](index=92&type=chunk) [11 Trade Payables, Accruals and Other Payables](index=53&type=section&id=11%20Trade%20Payables%2C%20Accruals%20and%20Other%20Payables) As of June 30, 2024, the Group's total trade payables, accruals, and other payables decreased to **HKD 457,793 thousand** from **HKD 486,937 thousand** at the end of 2023; trade payables are primarily due within three months, and amounts due to related parties are unsecured and interest-free Total Trade Payables, Accruals and Other Payables (HKD Thousands) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Trade payables | 299,785 | 290,961 | | Accruals and other payables | 150,247 | 190,252 | | Contract liabilities | 7,761 | 5,724 | | **Total** | **457,793** | **486,937** | Trade Payables Ageing Analysis (HKD Thousands) | Ageing | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Within 3 months | 255,213 | 258,911 | | 4 to 6 months | 31,618 | 20,979 | | 7 to 12 months | 10,002 | 8,361 | | Over 12 months | 2,952 | 2,710 | - Trade payables, accruals, and other payables to related parties are unsecured and interest-free[94](index=94&type=chunk) [12 Amounts Due to Non-controlling Interests](index=55&type=section&id=12%20Amounts%20Due%20to%20Non-controlling%20Interests) As of June 30, 2024, amounts due to non-controlling interests totaled **HKD 40,360 thousand**, representing unsecured, interest-free, HKD-denominated loans repayable on demand Amounts Due to Non-controlling Interests (HKD Thousands) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Unsecured loans - interest-free | 40,360 | 40,360 | - This amount is denominated in HKD, unsecured, and repayable on demand[95](index=95&type=chunk) [13 Other Income](index=55&type=section&id=13%20Other%20Income) For the six months ended June 30, 2024, the Group's total other income was **HKD 94,038 thousand**, primarily from government grants and subsidies, property rental income, and management fee income from Chu Kong Shipping Enterprises (Group) Other Income Composition (HKD Thousands) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Management fee income from Chu Kong Shipping Enterprises (Group) Company Limited | 12,500 | 20,000 | | Property rental income | 11,354 | 9,855 | | Government grants and subsidies | 63,464 | 56,352 | | Others | 6,720 | 6,705 | | **Total** | **94,038** | **92,912** | [13 Other Gains/(Losses) – Net](index=56&type=section&id=13%20Other%20Gains%2F%28Losses%29%20%E2%80%93%20Net) For the six months ended June 30, 2024, the Group recorded net other gains of **HKD 4,304 thousand**, primarily from gains on disposal of interests in joint ventures and property, plant, and equipment, but impacted by impairment losses on investments in associates Other Gains/(Losses) – Net (HKD Thousands) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Exchange gains/(losses), net | 683 | (3,297) | | Gain on disposal of interests in a joint venture | 6,042 | 2,227 | | Gain on disposal of property, plant and equipment | 1,570 | 270 | | Loss allowance for trade receivables | (991) | (91) | | Impairment loss on investments in associates | (3,000) | – | | **Total** | **4,304** | **(891)** | [14 Profit Before Income Tax](index=56&type=section&id=14%20Profit%20Before%20Income%20Tax) For the six months ended June 30, 2024, the Group's profit before income tax was stated after deducting expenses such as amortization of land use rights, amortization of intangible assets, depreciation of property, plant and equipment, depreciation of investment properties, depreciation of right-of-use assets, operating lease rental expenses, and staff costs Deductions from Profit Before Income Tax (HKD Thousands) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Amortisation of land use rights | 6,769 | 6,853 | | Amortisation of intangible assets | 841 | 910 | | Depreciation of owned property, plant and equipment | 52,204 | 56,215 | | Depreciation of investment properties | 585 | 579 | | Depreciation of right-of-use assets | 12,949 | 14,971 | | Operating lease rental expenses – vessels and barges | 75,339 | 72,221 | | Operating lease rental expenses – buildings | 4,923 | 4,186 | | Staff costs (including directors' emoluments) | 282,487 | 289,182 | [15 Share of Profits Less Losses of Joint Ventures and Associates](index=57&type=section&id=15%20Share%20of%20Profits%20Less%20Losses%20of%20Joint%20Ventures%20and%20Associates) For the six months ended June 30, 2024, the Group's share of profits less losses of joint ventures and associates before income tax was **HKD 26,267 thousand**, with a share of income tax of **HKD 4,943 thousand**, resulting in a final share of profits less losses of **HKD 21,324 thousand**, an increase from the prior year Share of Profits Less Losses of Joint Ventures and Associates (HKD Thousands) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Share of profits less losses before income tax – joint ventures | 10,850 | 6,368 | | Share of profits less losses before income tax – associates | 15,417 | 10,215 | | **Total share of profits less losses before income tax** | **26,267** | **16,583** | | Share of income tax – joint ventures | (2,854) | (1,357) | | Share of income tax – associates | (2,089) | (472) | | **Total share of income tax** | **(4,943)** | **(1,829)** | | **Total share of profits less losses** | **21,324** | **14,754** | [16 Income Tax Expense](index=58&type=section&id=16%20Income%20Tax%20Expense) For the six months ended June 30, 2024, the Group's total income tax expense was **HKD 13,601 thousand**, primarily comprising Hong Kong profits tax, PRC enterprise income tax, Macau income tax, and deferred income tax expense Income Tax Expense Composition (HKD Thousands) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Current income tax – Hong Kong profits tax | 3,744 | 5,092 | | Current income tax – PRC enterprise income tax | 8,538 | 8,407 | | Current income tax – Macau income tax | 757 | 380 | | Deferred income tax expense | 562 | 576 | | **Total** | **13,601** | **14,455** | - Hong Kong profits tax rate is **16.5%**, PRC enterprise income tax rate is **25%**, and Macau income tax rate is **12%**[100](index=100&type=chunk) [17 Dividends](index=59&type=section&id=17%20Dividends) The Board declared an interim dividend of **HKD 0.02 per ordinary share** for 2024, totaling **HKD 22,423 thousand**; additionally, a 2023 final dividend of **HKD 0.05 per ordinary share**, totaling **HKD 56,058 thousand**, was paid Dividends Declared and Paid (HKD Thousands) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Interim dividend declared and payable after the interim period (HKD 0.02 per ordinary share) | 22,423 | – | | 2023 final dividend paid/payable (HKD 0.05 per ordinary share) | 56,058 | 44,847 | | 2023 special dividend payable (HKD 0.00 per ordinary share) | – | 22,423 | - The 2024 interim dividend was not recognized as a liability at the end of the reporting period[101](index=101&type=chunk) [18 Earnings Per Share](index=60&type=section&id=18%20Earnings%20Per%20Share) For the six months ended June 30, 2024, profit attributable to equity holders of the Company was **HKD 67,115 thousand**, with basic earnings per share of **HKD 0.0599**; basic earnings per share equaled diluted earnings per share as no dilutive potential ordinary shares were issued Earnings Per Share Calculation | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (HKD Thousands) | 67,115 | 58,387 | | Weighted average number of ordinary shares in issue (Thousand Shares) | 1,121,167 | 1,121,167 | | **Basic earnings per share (HK Cents)** | **5.99** | **5.21** | - Basic earnings per share is equal to diluted earnings per share as there were no dilutive potential ordinary shares in issue[104](index=104&type=chunk) [19 Commitments](index=60&type=section&id=19%20Commitments) As of June 30, 2024, the Group's unfulfilled capital commitments not provided for in the interim financial report amounted to **HKD 9,188 thousand**, primarily for contracted but unprovided property, plant, and equipment Capital Commitments (HKD Thousands) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Property, plant and equipment: contracted but not provided for | 9,188 | 15,227 | [20 Related Party Transactions](index=61&type=section&id=20%20Related%20Party%20Transactions) The Group engages in various related party transactions with its direct holding company, Chu Kong Shipping Enterprises (Group), and its ultimate holding company, Guangdong Provincial Port & Shipping Group (a state-controlled enterprise of the PRC government), and their subsidiaries, including management service fees, shipping agency, passenger agency, fuel supply, leasing, and maintenance services, with transaction prices and terms based on market rates or mutual agreement - The Company's immediate holding company is Chu Kong Shipping Enterprises (Group) Company Limited, and its ultimate holding company is Guangdong Provincial Port & Shipping Group Co., Ltd., a state-controlled enterprise of the PRC government[106](index=106&type=chunk) - Significant transactions with entities controlled, jointly controlled, or significantly influenced by the PRC government primarily include bank deposits and interest income, as well as certain purchases and sales of goods and services[106](index=106&type=chunk) - Related party transactions include shipping agency, inland cargo transport, passenger agency, ferry terminal operation services, baggage handling services, management service fees, staff management service fees, vessel rental income, fuel supply income, bunkering service fees, consulting and software services, agency fee income, repair and maintenance services, cargo warehousing income, and ferry rental income[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) - Management service fees are calculated annually at **HKD 20,000,000** or **3.25%** of total assets (whichever is higher), capped at **HKD 25,000,000**, for the contract period from July 1, 2023, to June 30, 2026[113](index=113&type=chunk) Key Management Personnel Remuneration (HKD Thousands) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Salaries and allowances | 3,518 | 3,377 | | Directors' emoluments | 448 | 410 | | Contributions to retirement benefit schemes | 51 | 45 | | Housing allowances | 325 | 303 | | **Total** | **4,342** | **4,135** | [Company Information](index=69&type=section&id=Company%20Information) This chapter outlines the basic company information for Chu Kong Shipping Enterprises (Group) Company Limited, including Board members (executive, non-executive, independent non-executive directors), company secretary, committee members, auditor, principal bankers, share registrar, registered office, and head office - Executive Directors include Mr. Liu Guanghui (Chairman of the Board), Mr. Zhou Jun (General Manager), and Mr. Liu Wuwei[116](index=116&type=chunk) - Independent Non-executive Directors are Mr. Chan Ki Cheung, Ms. Yau Lai Man, and Mr. Chan Chung Ni[116](index=116&type=chunk) - The Auditor is KPMG[116](index=116&type=chunk) - Principal Bankers include Bank of China (Hong Kong), Nanyang Commercial Bank, The Bank of East Asia, The Hongkong and Shanghai Banking Corporation, Bank of Communications, China Minsheng Banking Corp., Ltd., and Industrial and Commercial Bank of China[116](index=116&type=chunk) - The Share Registrar is Tricor Tengis Limited, and both the Registered Office and Head Office are located at Chu Kong Shipping Tower, 143 Connaught Road Central, Hong Kong[116](index=116&type=chunk)

Business Growth and Performance - The group experienced significant growth in bulk cargo transportation volume during the first half of 2024, driven by strategic efforts in port logistics[2] - Cross-border passenger business showed a continuous growth trend, supported by the recovery in visitor numbers to Hong Kong and optimized flight schedules[2] - The company reported a net profit of HKD 71,506,000 for the six months ending June 30, 2024, compared to HKD 62,295,000 for the same period in 2023, representing a year-over-year increase of approximately 14.5%[7] - Basic and diluted earnings per share increased to HKD 5.99 from HKD 5.21, reflecting a growth of about 14.9%[7] - Total revenue for the period was HKD 1,388,711,000, up from HKD 1,280,558,000 in the previous year, indicating an increase of approximately 8.5%[7] - The company reported a consolidated revenue of HKD 1,388,711,000 for the six months ended June 30, 2024, representing a 12.6% increase compared to the same period last year[29] - The profit attributable to equity holders was HKD 67,115,000, up 14.9% year-on-year[29] Operational Efficiency and Strategic Initiatives - The group is actively transforming its traditional business structure, focusing on enhancing operational efficiency in logistics and transportation sectors[3] - The group is committed to optimizing its logistics network and improving operational efficiency through resource integration and project expansion[3] - The company aims to enhance cross-border passenger transport services and improve operational efficiency through a centralized management model, targeting cost reduction and increased operational effectiveness[5] - The group is enhancing its customer experience in high-end tourism and cruise services, successfully achieving a profit turning point[3] - The group plans to strengthen its strategic layout in the engineering logistics market, focusing on major projects like the Hong Kong International Airport engineering materials supply[4] - The group aims to explore overseas investment opportunities, particularly in Southeast Asia, to enhance its logistics network and service capabilities[4] Financial Position and Assets - Total assets as of June 30, 2024, were HKD 4,510,691,000, a slight decrease from HKD 4,546,346,000 at the end of 2023[9] - The company reported total liabilities of HKD 1,015,316,000, down from HKD 1,048,304,000, indicating a reduction in overall debt levels[11] - The net current assets increased to HKD 793,983,000 from HKD 738,939,000, reflecting improved liquidity[12] - The group maintained a current ratio of 2.1 as of June 30, 2024, compared to 1.9 on December 31, 2023[44] - Cash and cash equivalents amounted to HKD 963,975,000, representing 21.4% of total assets[44] - The group’s debt-to-equity ratio stood at 8.7%, slightly down from 8.8% at the end of the previous year[44] Segment Performance - The operating profit before tax for the cargo transportation segment was HKD 12,494,000, while the total operating profit before tax across all segments was HKD 85,107,000[17] - The cargo handling and storage segment generated external revenue of HKD 177,994,000, contributing to a total segment profit after tax of HKD 18,123,000[17] - The fuel supply segment reported external revenue of HKD 201,154,000, with a profit after tax of HKD 16,411,000[17] - Container throughput volume reached 667,000 TEU, a 3.3% increase from 646,000 TEU in the previous year[32] - Bulk cargo transportation volume surged to 614,000 tons, reflecting a significant increase of 204.0% compared to 202,000 tons last year[32] Challenges and Market Conditions - The company faced challenges in the international market, with a slowdown in demand and low investment activity impacting global trade recovery[29] - The company successfully maintained stable business volume through the development of new business initiatives despite pressure on its port and logistics operations[30] - The company is actively adjusting its service chain and transforming ports into integrated logistics service providers in response to market challenges[34] Shareholder and Investor Relations - The company expressed gratitude to investors and partners for their support and committed to creating greater value for shareholders moving forward[6] - The company declared an interim dividend of HKD 0.02 per share, compared to no interim dividend in the same period last year[26] - The company declared an interim dividend of HKD 0.02 per ordinary share, totaling approximately HKD 22,423,000, compared to zero in the previous year[55] Governance and Compliance - The audit committee and independent auditors have reviewed the unaudited interim financial information for the six months ending June 30, 2024[57] - Mr. Zou Bingxing has officially retired and resigned from the company's independent non-executive director position effective April 1, 2024[59] - The company has not been informed of any changes regarding directors' information since December 31, 2023, as per Listing Rule 13.51B[59] - The current executive directors include Mr. Liu Guanghui, Mr. Zhou Jun, and Mr. Liu Wuwei[59] - The current non-executive director is Ms. Zhong Yan, while the independent non-executive directors are Mr. Chen Qichang, Ms. Qiu Liwen, and Mr. Chen Zhongni[59]

Financial Performance - Total assets decreased by 0.5% to HKD 4,546.3 million, while total liabilities decreased by 2.4% to HKD 1,048.3 million[14]. - The debt ratio improved to 23.1%, down from 23.5% in the previous year, indicating a stronger financial position[14]. - The company's profit attributable to equity holders for the year was HKD 114,069,000, an increase of HKD 20,579,000 or 22.0% compared to the previous year[68]. - The company's share of profits from joint ventures and associates showed a significant improvement, reporting a profit of HKD 31,869,000, an increase of HKD 50,994,000 or 266.6% compared to the previous year[46]. - The company's capital debt ratio was 8.8% as of December 31, 2023, down from 10.0% in 2022, while the debt ratio was 23.1%, slightly down from 23.5% in the previous year[72]. - The current ratio of the company was 1.9 as of December 31, 2023, compared to 1.8 in 2022[86]. - The company's distributable reserves as of December 31, 2023, amounted to HKD 1,451,035,000, slightly up from HKD 1,445,952,000 in 2022, with approximately HKD 56,058,000 earmarked for the final dividend distribution[133]. Operational Highlights - Container transportation volume increased by 2.8% to 1,321,000 TEU, and bulk cargo transportation volume surged by 68.6% to 1,143,000 metric tons[24]. - The passenger volume at the Haidian Terminal reached 459,000, a significant increase of 261.4% year-on-year[33]. - The company completed a total of 1,017,000 passenger trips in the year, reflecting a recovery in urban routes as visitor numbers increased[54]. - The company reported a 31% year-on-year increase in air freight volume, driven by the transformation and upgrade of air transport services[51]. - Cross-border water passenger transport business has resumed, with significant recovery in passenger volumes following the normalization of travel[22]. - The logistics business in the engineering sector has expanded, successfully winning multiple contracts, including a project for the Hong Kong International Airport, enhancing revenue generation capabilities[47]. Strategic Initiatives - The company plans to enhance its port logistics resources and develop a modern port logistics industry system to improve market competitiveness[20]. - The company aims to expand its fuel supply business by successfully bidding for government marine fuel supply projects and enhancing operational capabilities[34]. - The company is focusing on developing new profit growth points by exploring new business opportunities in the Greater Bay Area logistics market[7]. - The company is actively promoting an integrated logistics model, combining barge, terminal, and local delivery services to tap into the e-commerce logistics market[47]. - The company is focusing on high-end business transformation and logistics expansion in the Greater Bay Area, particularly in Hong Kong and Zhuhai, to enhance its core logistics services[96]. - The company plans to improve its cross-border passenger transport operations by optimizing route planning and enhancing marketing efforts, aiming to increase the overall impact and conversion rate of its cross-border products[98]. Environmental and Compliance Efforts - The company has implemented measures to enhance environmental compliance and sustainability, adhering to various environmental laws and regulations[40]. - The company has set annual environmental goals and action plans in line with the Hong Kong Stock Exchange's ESG reporting guidelines, promoting resource conservation and environmental sustainability[41]. - The company identified six key issues in its ESG assessment, including environmental compliance and employee rights, to address stakeholder concerns[62]. - The company has established a comprehensive safety management system to ensure operational safety and reduce potential risks[65]. Challenges and Market Outlook - The global shipping market is expected to remain under pressure in 2024 due to geopolitical conflicts and economic uncertainties, continuing the downward trend observed in 2023[84]. - The company is facing significant challenges in its freight business due to declining demand, rising freight rates without support, and intensified competition around inland ports[120]. Human Resources and Management - The company is enhancing its human resource management and optimizing its compensation system to attract and retain talent, addressing high turnover rates and recruitment challenges[127]. - The company is focusing on cost reduction and operational efficiency improvements to enhance its management capabilities and operational effectiveness[98]. Capital and Funding - As of December 31, 2023, the company secured credit facilities totaling HKD 1,186,650,000 and RMB 122,815,000 (approximately HKD 135,527,000), compared to HKD 1,185,000,000 and RMB 148,610,000 (approximately HKD 166,361,000) in 2022[71]. - The company has maintained good communication with banks to mitigate funding risks due to increased regulatory scrutiny on capital outflows from mainland China[128]. - The company plans to increase the registered capital of certain subsidiaries to effectively reduce financing costs[128]. Stock Options and Dividends - The company has established a dividend policy aiming to distribute at least 30% of the annual profit attributable to equity holders as dividends, with a proposed final dividend of 5 HK cents per share for the current year[116][117]. - The stock option plan allows for the issuance of up to 108,000,000 shares, representing 9.6% of the total shares issued as of the report date[153]. - The stock options granted under the plan are valid for five years from the effective date, with specific performance conditions that may affect the number of options that become exercisable[150]. - The stock option plan has a validity period of ten years from the adoption date and will terminate on December 7, 2025[199]. - No stock options were granted under the stock option plan during the year, resulting in no revenue from this source[200].

Financial Performance - The company reported a basic and diluted earnings per share of 10.17 and 8.34 HKD respectively, representing a significant increase from the previous year[5]. - The group recorded a consolidated revenue of HKD 2,553,835,000 for the year ending December 31, 2023, a decrease of 11.9% compared to the same period last year[34]. - The annual gross profit was HKD 285,468,000, an increase of 12.0% year-on-year, while the profit attributable to shareholders rose by 22.0% to HKD 114,069,000[34]. - The company reported a total profit after tax of HKD 122,631,000 for the year, with significant contributions from various segments[118]. - The company's consolidated profit for the year ended December 31, 2023, was HKD 122,631,000, compared to HKD 108,025,000 for the same period in 2022, representing an increase of approximately 13.5%[155]. - Total revenue for the year ended December 31, 2023, was HKD 3,010,744,000, with external customer revenue contributing HKD 2,553,835,000[118]. - Operating profit for the year was HKD 130,112, down 19.8% from HKD 162,387 in 2022[188]. - Net profit for the year reached HKD 122,631, representing a 13.6% increase from HKD 108,025 in 2022[188]. - Total comprehensive income for the year was HKD 84,442, compared to a loss of HKD 33,464 in the previous year[189]. Assets and Liabilities - Total assets decreased to 4,546,346 thousand HKD from 4,569,780 thousand HKD year-on-year[26]. - The company’s liquidity ratio as of December 31, 2023, was 1.9, up from 1.8 in the previous year[81]. - The debt-to-equity ratio improved to 8.8% from 10.0% year-on-year, while the total debt ratio was 23.1%, slightly down from 23.5%[82]. - As of December 31, 2023, the total assets amounted to HKD 1,517,162,000, an increase from HKD 1,450,555,000 in 2022, indicating a growth of approximately 4.6%[166]. - The company has unfulfilled capital commitments amounting to HKD 15,227,000 as of December 31, 2023[127]. Operational Highlights - The company aims to enhance the "Belt and Road" development momentum, seeking new business opportunities in ASEAN markets such as Singapore, Malaysia, Thailand, and Vietnam[3]. - The company has successfully integrated logistics resources to build a modern port logistics system, enhancing regional port cooperation and competitiveness[2]. - The company is focused on developing a core port platform to support business growth and enhance market competitiveness[2]. - The group plans to continue focusing on engineering logistics and diversify new cargo sources, leveraging Hong Kong terminal resources to enhance revenue generation capabilities[57]. - The company is focusing on expanding logistics services and enhancing operational efficiency through various initiatives, including the introduction of new logistics models[63]. - The company is actively preparing for the construction of logistics networks in Vietnam, indicating plans for market expansion[158]. Passenger and Cargo Transport - The total passenger volume for the year was 1,476,000, representing a significant increase of 1,062.2% year-on-year, with local ferry passenger volume rising by 8.2% to 12,269,000[35]. - Container throughput for the year was 1,321,000 TEU, up 2.8% year-on-year, while bulk cargo throughput increased by 68.6% to 1,143,000 tons[56]. - The group’s container handling volume decreased by 3.2% to 1,095,000 TEU, while bulk cargo handling volume fell by 12.2% to 8,966,000 tons[58]. - The cross-border waterway passenger services resumed operations, contributing positively to the group's performance as border crossings normalized[35]. - The group has opened three new routes, enhancing its local ferry services and capitalizing on the recovery in passenger traffic[35]. - The passenger volume for the operational routes from Shekou, Zhongshan, Humen, Pazhou, and Shenzhen Airport reached 459,000, representing a year-on-year increase of 261.4%[74]. - The local ferry passenger traffic recorded 12,269,000 trips, an increase of 8.2% year-on-year, following the full resumption of travel between Hong Kong and the mainland[71]. Strategic Initiatives - The company is advancing its digital transformation projects, having successfully registered three software copyrights and completed the construction of a smart trailer scheduling platform[78]. - The company successfully obtained qualifications for cross-border e-commerce operations and is actively optimizing land transport capabilities[63]. - New cross-border passenger transport routes have been launched, including services from Shenzhen Airport Terminal to Hong Kong and Guangzhou to Hong Kong, contributing to increased operational efficiency[159]. - The group aims to build a comprehensive logistics development platform, focusing on high-end logistics services and expanding value-added business[161]. - The group is committed to high-quality development and creating shareholder value while contributing to the prosperity of the Guangdong-Hong Kong-Macao economy[187]. Governance and Compliance - The board confirmed full compliance with corporate governance codes throughout the reporting period[150].