Financial Performance - Revenue increased by 23% to HKD 58.27 billion for the year ended December 31, 2024, compared to HKD 47.41 billion in 2023[4] - Core operating profit rose by 23% to HKD 2.73 billion, up from HKD 2.22 billion in the previous year[4] - Core net profit grew by 12% to HKD 1.36 billion, compared to HKD 1.21 billion in 2023[4] - Shareholders' profit attributable increased by 95% to HKD 1.54 billion, up from HKD 791 million in 2023[4] - Total comprehensive income for the year amounted to HKD 1.15 billion, compared to HKD 747 million in 2023[6] - The company reported a net profit attributable to shareholders of HKD 1,320,290, compared to HKD 1,209,818 in the previous year, reflecting an increase of approximately 9.1%[16] Segment Performance - International freight business recorded a segment profit of HKD 1.95 billion, a 39% increase from HKD 1.40 billion in the previous year[4] - The logistics segment generated revenue of HKD 14,448,877 in 2024, slightly down from HKD 15,006,751 in 2023, reflecting a decrease of approximately 3.7%[16] - The international freight forwarding segment reported revenue of HKD 43,825,527, up from HKD 32,400,808 in 2023, marking a substantial increase of around 35.5%[16] - The mainland China segment achieved revenue of HKD 18,509,517, an increase from HKD 16,262,366 in 2023, representing a growth of approximately 13.8%[16] - The Americas region generated revenue of HKD 15,129,822, significantly up from HKD 9,733,852 in 2023, indicating an increase of about 55.5%[16] Dividends and Shareholder Returns - Proposed final dividend of HKD 0.15 per share to be paid on June 10, 2025[4] - A special interim dividend was declared on December 29, 2023, amounting to approximately HKD 983,215,000, based on the fair value of KEX Express Thailand shares[31] - The proposed final dividend for the year ending December 31, 2024, is HKD 271,114,000, which is an increase from HKD 234,966,000 in 2023[32] Assets and Liabilities - Non-current assets totaled HKD 20.42 billion, slightly down from HKD 20.70 billion in 2023[7] - Current assets increased to HKD 22.29 billion from HKD 19.35 billion in the previous year[7] - Total liabilities rose to HKD 15.52 billion, compared to HKD 13.18 billion in 2023[7] - Total equity decreased from HKD 20,107,259 thousand in 2023 to HKD 19,079,131 thousand in 2024, indicating a decline of about 5.1%[8] - The total bank loans and overdrafts amounted to HKD 8,989,214,000 in 2024, up from HKD 8,560,666,000 in 2023[43] Operational Changes and Strategic Focus - The company completed the distribution of all shares held in KEX Express Thailand as a special interim dividend, terminating certain express delivery operations[9] - The company reported that the performance of discontinued operations is presented separately in the consolidated financial statements for the year ended December 31, 2024[9] - The company has secured a five-year HKD 1 billion sustainable development-linked loan to promote sustainability initiatives[56] - The company is expanding its industrial project logistics division, contributing nearly HKD 1.7 billion in revenue, with expectations for future growth[54] - The group plans to leverage its market presence in Southeast Asia, particularly in Thailand, Vietnam, and Indonesia, to capture growth opportunities[58] Compliance and Governance - The company has established an Audit and Compliance Committee, which includes two independent non-executive directors and one non-executive director, with the chairperson possessing appropriate professional qualifications[69] - The Audit and Compliance Committee has reviewed the annual performance and believes it complies with relevant accounting standards and regulations[69] - The board has proposed to change the company's English name from "Kerry Logistics Network Limited" to "KLN Logistics Group Limited," pending shareholder approval[70] Future Outlook - The group anticipates that the abnormal supply chain conditions will persist into 2025, influenced by ongoing protectionism and geopolitical tensions in the Middle East[58] - The group expects infrastructure investment to rebound with the stabilization of the global economy, providing greater development space for its industrial project logistics business[59] - Future guidance suggests a revenue growth target of 18% for the next quarter[81] Employee and Operational Efficiency - The group has reduced its workforce to approximately 18,700 employees as of December 31, 2024, down from about 33,100 employees a year earlier due to the completion of the KEX Express Thailand distribution[64] - The group has maintained a low administrative expense ratio relative to revenue, significantly outperforming international peers[60] - The total administrative expenses allocated were HKD 476,548, slightly down from HKD 481,467 in 2023, showing a decrease of about 1.9%[16]

期 期 | --- | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------------------|-------|-------|-------|-------------------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Kerry LogisticsNetwork Limited KLN | | | | | | 嘉 里 物 流 赚 網 有 限 公 司 0636.HK [於其屬爐 厨房群處註目現立並於百林進存續之機絡免有限責任公司] | | | | MIX Paper | Bupperlingresponsible forestry F8C° C00744 ...

Financial Performance - Revenue increased by 10% year-on-year to HKD 25.432 billion (compared to HKD 23.197 billion in the first half of 2023) [3] - Core operating profit grew by 11% to HKD 1.200 billion (compared to HKD 1.078 billion in the first half of 2023) [3] - Core net profit also increased by 5% to HKD 606 million (compared to HKD 575 million in the first half of 2023) [3] - Profit attributable to shareholders for the first half of 2024 was HKD 831 million, a 126% increase year-on-year (compared to HKD 368 million in the first half of 2023) [3] - Total comprehensive income for the period was HKD 291.252 million, compared to a loss of HKD 114.605 million in the previous year [5] - Total revenue for the first half of 2024 was HKD 25,432,488, an increase from HKD 23,197,039 in the same period of 2023, representing a growth of approximately 9.7% [13] - Core operating profit for the first half of 2024 was HKD 1,199,655, compared to HKD 1,078,254 in 2023, marking an increase of approximately 11.2% [13] - The company reported a net profit attributable to shareholders of HKD 589,956, up from HKD 574,986 in the previous year, representing a growth of about 2.6% [13] Segment Performance - The logistics business recorded a segment profit of HKD 693 million, a slight decrease of 3% [3] - The international freight business reported a segment profit of HKD 740 million, an 18% increase [3] - Total revenue for the integrated logistics segment reached HKD 6,932,633,000 for the six months ended June 30, 2024, compared to HKD 6,210,869,000 for the same period in 2023, representing a year-on-year increase of approximately 11.6% [15] - Revenue from international freight forwarding was HKD 18,499,855,000 for the six months ended June 30, 2024, compared to HKD 16,107,544,000 for the same period in 2023, indicating a growth of approximately 14.8% [15] - The total segment profit for the Americas was HKD 206,761, compared to HKD 124,987 in the previous year, indicating a significant increase of around 65.2% [13] - The logistics segment experienced a 3% decline in profit due to slow economic recovery and weak local demand, particularly in Hong Kong and mainland China [39] Dividends and Shareholder Returns - The interim dividend per share is set at HKD 0.10, to be paid on September 23, 2024 [3] - The company declared a special interim dividend of approximately HKD 983,215,000, based on the fair value of its 907,200,000 shares in KEX Express Thailand, representing about 52.1% of all issued shares [25] - Basic earnings per share from continuing operations increased to HKD 0.33 for the six months ended June 30, 2024, compared to HKD 0.32 for the same period in 2023 [26] Assets and Liabilities - Non-current assets amounted to HKD 20.089 billion as of June 30, 2024, compared to HKD 20.699 billion at the end of 2023 [6] - Current liabilities totaled HKD 13.973 billion as of June 30, 2024, compared to HKD 13.183 billion at the end of 2023 [6] - As of June 30, 2024, total non-current liabilities amounted to HKD 8,006,780, an increase from HKD 7,358,856 as of December 31, 2023, reflecting a growth of approximately 8.8% [7] - The total equity as of June 30, 2024, was HKD 18,589,077, down from HKD 20,107,259 as of December 31, 2023, indicating a decrease of about 7.6% [7] - The total net accounts receivable as of June 30, 2024, was HKD 9,308,939,000, an increase from HKD 8,568,201,000 as of December 31, 2023 [29] - The total amount of accounts payable as of June 30, 2024, was HKD 4,698,517,000, an increase from HKD 4,310,572,000 as of December 31, 2023 [30] - The company’s total receivables, including prepayments and deposits, reached HKD 13,234,989,000 as of June 30, 2024, compared to HKD 11,920,703,000 as of December 31, 2023 [29] Operational Efficiency - Direct operating expenses for the six months ended June 30, 2024, were HKD 19,669,976,000, compared to HKD 17,533,317,000 for the same period in 2023, representing an increase of approximately 12.2% [19] - Financing costs for the six months ended June 30, 2024, totaled HKD 285,884,000, up from HKD 265,381,000 for the same period in 2023, indicating a rise of about 7.8% [20] - The group recognized a total tax expense of HKD 260,393,000 for the six months ended June 30, 2024, compared to HKD 225,750,000 for the same period in 2023, reflecting an increase of approximately 15.4% [21] - Operating expenses decreased significantly by 12% during the period, contributing to profit growth, with the operating expense to revenue ratio lower than industry peers [42] Strategic Initiatives - The company completed a special interim dividend distribution by physically distributing all shares held in KEX Express Thailand, terminating certain Asian express businesses, which are classified as discontinued operations [8] - The company is committed to ongoing research and development of new technologies to enhance its logistics services and improve operational efficiency [17] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth [14] - The company plans to expand its market presence in Asia and the Americas, leveraging its logistics capabilities to capture growth opportunities in these regions [17] - The company is exploring the feasibility of installing more solar panels at its global operations to enhance renewable energy usage [41] - The company is enhancing data collection and management in preparation for new climate disclosure regulations issued by the stock exchange [41] Workforce and Employment - The workforce decreased to approximately 18,600 employees as of June 30, 2024, down from about 33,100 employees on December 31, 2023, primarily due to the divestment of KEX Express Thailand [44] Future Outlook - The company maintains an optimistic outlook for fiscal year 2024, expecting an increase in international freight business performance in the second half, driven by sustained demand in maritime transport and strong air freight performance in Q4 2024 [42]

Financial Performance - Total revenue for the year reached HKD 47,408 million, representing a 42% increase compared to the previous year[8]. - Core operating profit was HKD 2,207 million, up 61% year-over-year[8]. - Core net profit increased by 69% to HKD 1,214 million[8]. - Shareholders' profit attributable to the company was HKD 791 million, reflecting a 78% growth[8]. - In 2023, the group's revenue decreased by 42% to HKD 47.408 billion, down from HKD 82.330 billion in 2022[31]. - Core operating profit fell by 61% to HKD 2.207 billion, compared to HKD 5.645 billion in the previous year[32]. - Core net profit declined by 69% to HKD 1.214 billion, down from HKD 3.952 billion in 2022[32]. - The international freight segment reported a 70% drop in profit due to inventory surplus and weak purchasing power, particularly in the Asian market[39]. - The overall performance in 2023 met expectations and aligned with global industry trends despite challenging market conditions[33]. Corporate Governance - The board is responsible for leading and controlling the company, ensuring alignment with its culture, purpose, values, and strategy for long-term sustainable success[64]. - The board has delegated daily management and operational responsibilities to senior management, with major transactions requiring board approval[65]. - The board consists of a mix of executive and non-executive directors, with key changes in leadership effective from October 1, 2023[66]. - The company has maintained high standards of corporate governance, ensuring shareholder interests and accountability[62]. - The company is committed to good corporate governance practices and effective communication with shareholders[78]. - The board has ensured compliance with listing rules by appointing independent non-executive directors, maintaining at least one with appropriate professional qualifications[77]. - The company has established a nomination policy to ensure a diverse and effective board composition[89]. - The independent non-executive directors confirmed that the ongoing related party transactions for the year ending December 31, 2023, were conducted in the ordinary course of business and on normal commercial terms[184]. Employee and Workforce - The company has over 33,000 global employees and operates in 59 countries and regions[3]. - The group has approximately 33,100 employees as of December 31, 2023, with a competitive salary structure and performance-based compensation policies[45]. - The workforce consists of 33,130 employees, with a gender distribution of 61% male and 39% female[92]. - The company emphasizes talent development through its Young Executive Academy (YEA), which has been nurturing talent since 2001[140]. - The company has developed a management trainee program since 2001 to cultivate potential employees into future management personnel[145]. Strategic Focus and Market Position - Future outlook includes continued market expansion and investment in new technologies[8]. - Kerry Logistics Network Group reported a significant focus on core capabilities in integrated logistics and international freight, aiming for sustainable growth and market expansion[26]. - The company sold its express business by the end of 2023 to concentrate resources on its core operations[26]. - The group plans to enhance its focus on core logistics and international freight businesses following the divestment of its e-commerce and express services[34]. - The company aims to leverage market recovery opportunities while remaining patient in asset value realization to drive continuous growth[42]. - The company aims to achieve success in the Asia-Pacific region and global markets by leveraging its unique understanding of the Asian market[62]. Awards and Recognition - The company was awarded the Best Third-Party Logistics Service Provider at the 2023 Asia Supply Chain Awards[56]. - The company received the Outstanding Brand Image Award at the 2023 CFS Financial Summit in Mainland China[53]. - The company was recognized as the Best Logistics Company in the Asia-Pacific region by Frost & Sullivan in 2023[56]. - The company has received 137 awards, including corporate awards and industry accolades, highlighting its strong market position[49]. Sustainability and ESG Initiatives - Kerry Logistics aims to improve its ESG strategies and governance framework to implement sustainable logistics solutions[26]. - The group aims for net-zero emissions by 2050 and has made significant progress in climate risk assessment and setting mid-term goals[41]. - The company has emphasized compliance with environmental laws and regulations, maintaining high standards in pollution prevention and natural resource protection[135]. - Corporate social responsibility details are included in the company's 2023 sustainability report[144]. Financial Management and Capital Structure - As of December 31, 2023, the total bank loans amounted to HKD 8.498 billion, with 38% (HKD 3.263 billion) due within one year[44]. - The total unused bank loans and credit facilities available as of December 31, 2023, was HKD 9.751 billion, which can be allocated for significant capital expenditures[44]. - The company aims to distribute approximately 30% of its core net profit to shareholders as dividends each fiscal year, subject to board discretion and shareholder approval[111]. - As of December 31, 2023, the company has a distributable reserve of HKD 5.98 billion, with HKD 235 million recommended for the final dividend[151]. Related Party Transactions - The annual cap for services provided by SF Tyson to the company for the years ending December 31, 2022, 2023, and 2024 is set at HKD 1.068 billion, HKD 4.189 billion, and HKD 5.844 billion respectively[176]. - The total amount payable to SF Tyson by the group for the years ending December 31, 2022, and 2023 is HKD 797 million and HKD 911.7 million respectively[176]. - The independent non-executive directors confirmed that the ongoing related party transactions for the year ending December 31, 2023, were conducted in the ordinary course of business and on normal commercial terms[184]. Shareholder Communication - The company has established multiple communication channels with shareholders, including annual general meetings and a dedicated investor relations hotline[108]. - The company emphasizes the importance of transparency and timely disclosure of information to facilitate informed investment decisions by shareholders[108]. - The company has conducted a review of its shareholder communication policy and is satisfied with its execution and effectiveness[109]. Technology and Innovation - The company is investing in automation and technology to enhance efficiency and performance[26]. - The company has implemented an integrated management, operations, and analytics system embedded with artificial intelligence, enhancing operational efficiency and service quality in Southeast Asia and Oceania[129]. - The company aims to leverage new technologies in its operations to improve efficiency and service delivery[119].

Company Analysis - Citigroup maintains a "Buy" rating on Kerry Logistics (00636) and raises its 2024 and 2025 profit forecasts by 29% [1] - The target price for Kerry Logistics is increased from HKD 8.42 to HKD 10.5 [1] - The company's better-than-expected profit last year was driven by improved freight rates in the second half of the year [1] Industry Outlook - Despite recent declines in freight rates, management expects a year-on-year improvement in ocean freight rates after hitting a bottom in the first half of the year [1] - The integrated logistics business is expected to see moderate growth, supported by more projects in Hong Kong [1] - The international freight forwarding business is likely to see significant profit improvement this year due to better freight rate prospects [1]

Financial Performance - Revenue decreased by 42% to HKD 47.41 billion (2022: HKD 82.33 billion) [2] - Core operating profit fell by 61% to HKD 2.21 billion (2022: HKD 5.65 billion) [2] - Core net profit declined by 69% to HKD 1.21 billion (2022: HKD 3.95 billion) [2] - Shareholders' profit attributable decreased by 78% to HKD 791 million (2022: HKD 3.58 billion) [2] - Total revenue for the year 2023 was 14,280,309 thousand HKD, a decrease from 14,809,282 thousand HKD in 2022, representing a decline of approximately 3.6% [12] - The company's operating profit for 2023 was reported at 1,295,066 thousand HKD, compared to 1,385,430 thousand HKD in 2022, indicating a decrease of around 6.5% [12] - The net profit attributable to shareholders for 2023 was 1,209,818 thousand HKD, down from 3,959,459 thousand HKD in 2022, a significant decline of approximately 69.5% [12] - The company reported a core profit of 1,214,074 thousand HKD for 2023, compared to 3,952,443 thousand HKD in 2022, reflecting a decrease of about 69.2% [12] Dividends and Shareholder Returns - Proposed final dividend of HKD 0.13 per share, to be paid on June 6, 2024 [2] - The proposed final dividend for the year ended December 31, 2023, is HKD 234,966,000, with a per share distribution of HKD 0.13 [24] - The company declared a special interim dividend involving the distribution of 907.2 million shares of KETH, representing approximately 52.1% of all issued KETH shares [37] - A special interim dividend was declared, involving the distribution of 907,200,000 shares of KEX, representing approximately 52.1% of all issued KEX shares [52] Assets and Liabilities - Total assets decreased to HKD 21.42 billion from HKD 23.90 billion year-on-year [5] - Current liabilities decreased to HKD 13.18 billion from HKD 15.15 billion year-on-year [5] - Cash and bank balances decreased to HKD 6.52 billion from HKD 9.24 billion year-on-year [5] - As of December 31, 2023, non-current liabilities totaled HKD 7,358,856 thousand, a decrease from HKD 8,939,240 thousand in 2022, reflecting a reduction of approximately 17.7% [6] - The company's equity as of December 31, 2023, was HKD 20,107,259 thousand, down from HKD 21,249,705 thousand in 2022, indicating a decline of about 5.4% [6] - The total equity attributable to shareholders as of December 31, 2023, was HKD 16,812,279 thousand, down from HKD 18,429,094 thousand in 2022, reflecting a decrease of approximately 8.8% [6] - The total amount of receivables, prepayments, and deposits was HKD 11,920,703,000, a decrease from HKD 13,406,909,000 in the previous year [29] - The total bank loans amounted to HKD 8,498,131,000, slightly down from HKD 8,812,849,000 in the previous year [31] - The total bank loans of the group as of December 31, 2023, amounted to HKD 8.575 billion, down from HKD 8.812 billion in 2022 [35] Business Operations and Strategy - The company plans to focus on market expansion and new technology development in the upcoming year [2] - The company plans to focus on market expansion and new product development in the upcoming year to drive growth [12] - The company has identified strategic opportunities for mergers and acquisitions to enhance its market position [12] - The company is investing in new technologies to improve operational efficiency and customer experience [12] - The group plans to continue focusing on core business segments, including integrated logistics and international freight forwarding, to drive future growth [14] - The company has reclassified certain segments, which did not affect the overall profit for the years ended December 31, 2023, and December 31, 2022 [13] - The company sold its express service business in the Asia-Pacific and Europe regions in Q3 2023, which is classified as discontinued operations in the financial statements [7] - The group completed the acquisition of the remaining 21% stake in Kerry Freight Services in July 2023 [34] - The group acquired a majority stake in French Business By Air SAS, enhancing air freight capabilities and solidifying its position in Europe, the Middle East, and Africa [42] - The group completed multiple large-scale industrial projects in mainland China, Central Asia, and Europe, establishing a strong foundation for project logistics business growth [42] Market Conditions and Future Outlook - Future guidance indicates a cautious outlook due to market conditions, with expectations for gradual recovery in revenue growth [12] - The global logistics industry faced stagnation due to inventory surplus and weak demand, but slight recovery in freight rates and cargo volume was observed [40] - The international freight business experienced a 70% decline in segment profit in 2023 due to inventory surplus, weak purchasing power, and stagnant export growth, particularly in the Asian market [42] - In Q3 2023, the logistics market remained unstable, with consumer demand and cargo volume significantly below normal levels, leading to a lack of expected seasonal peaks [42] - The company aims for net-zero emissions by 2050 and has made significant progress in climate risk assessment and measuring scope 3 emissions [43] - The group maintains a cautious approach to managing operational costs amid macroeconomic uncertainties while seeking opportunities to release asset value [44] Employee and Corporate Governance - The group employed approximately 33,100 staff as of December 31, 2023, with competitive salaries and various employee benefits in place [47] - The company has established an Audit and Compliance Committee, which reviewed the annual performance and accounting principles, confirming compliance with relevant standards [51] - The company will hold its annual general meeting on May 22, 2024, to discuss the fiscal year ending December 31, 2023 [52] - The company will suspend share transfer registration from May 17, 2024, to May 22, 2024, for determining eligible shareholders for the upcoming annual general meeting [53] - The company has received an exemption from the Thai Securities and Exchange Commission regarding the distribution of KEX shares [52] - The company has no significant events affecting the group since December 31, 2023, apart from those disclosed [52] - The annual report will be published on the Hong Kong Stock Exchange and the company's website, containing all information required by the listing rules [54] Performance of Kerry Express Thailand - Kerry Express Thailand reported a revenue increase of 15% year-over-year, reaching THB 2.5 billion in the latest quarter [56] - The company achieved a total of 1.2 million active users, representing a growth of 20% compared to the previous year [56] - Future outlook indicates a projected revenue growth of 10-12% for the next fiscal year, driven by market expansion and new service offerings [56] - Investment in new technology and logistics infrastructure is expected to exceed THB 500 million in the upcoming year [56] - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in regional market share by 2025 [56] - Kerry Express Thailand is exploring potential acquisitions to enhance its service capabilities and operational efficiency [56] - The introduction of new delivery services is anticipated to contribute an additional THB 300 million in revenue over the next year [56] - The company reported a net profit margin of 8% for the last quarter, maintaining stable profitability despite rising operational costs [56] - User engagement metrics improved, with a 30% increase in app usage and customer interactions [56] - The board has approved a new strategic plan focusing on sustainability and reducing carbon emissions by 15% over the next three years [56]

智通财经APP讯，嘉里物流(00636)发布公告，董事会已议决，待条件获达成后根据于记录日期名列股东 名册的合资格股东当时各自于公司的持股比例，向其宣派特别中期股息，方式为以实物分派公司间接持 有的9.07亿股KEX股份。 于2024年2月5日，公司已就分派产生的收购要约责任获得泰国证交会的豁免，惟须符合以下条件：(i)公 司须促使要约人就KEX所有证券进行收购要约，直至完成为止，有关条件及价格不逊于公司进行要约 收购时本应提出的条件及价格，以便为KEX股东提供机会就其持有KEX证券的事宜作出决定，及(ii)公 司须促使KEX刊发公告，以知会投资者(i)项。公司确认，于本公告刊发时，(i)及(ii)均已获达成。 ...

Share Grants and Vesting - The total number of unvested shares as of December 31, 2022, was 1,036,775, with 820,306 shares granted during the year [3]. - The fair value of the shares granted on April 1, 2022, was HKD 18.52, based on the closing price prior to the grant date [4]. - The total number of vested shares reached 1,047,209 by the end of the reporting period [3]. - The highest five compensated individuals received a total of 1,043,796 shares that remained unvested as of December 31, 2022 [3]. - The company confirmed that no shares were transferred to other categories, canceled, or expired during the year [4]. - The company will recognize the total expense related to the granted shares over the relevant vesting periods [5]. - The weighted average closing price of the shares prior to the vesting date was HKD 17.96 [4]. Governance and Compliance - The company’s board of directors includes both executive and non-executive members, ensuring diverse governance [6]. - The announcement was made on October 4, 2023, maintaining all other information in the annual report unchanged [6]. - The company operates under the regulations of the Hong Kong Stock Exchange, ensuring compliance and transparency [6].

Financial Performance - Revenue for the first half of 2023 decreased by 47% to HKD 25.315 billion, compared to HKD 48.034 billion in the same period of 2022[16] - Core operating profit fell by 84% to HKD 568 million, down from HKD 3.461 billion year-on-year[17] - Core net profit decreased by 85% to HKD 368 million, compared to HKD 2.372 billion in the previous year[16] - Shareholders' profit attributable to the company was HKD 368 million, an 85% decline from HKD 2.377 billion in the first half of 2022[17] - The international freight segment experienced a significant loss of HKD 505 million, compared to a profit of HKD 3.398 billion in the same period last year, representing an 82% decline[17] - The company reported a net profit for the period of HKD 300,179 thousand, a significant drop of 88.8% compared to HKD 2,694,592 thousand in the prior year[58] - Basic earnings per share decreased to HKD 0.20 from HKD 1.32, reflecting a decline of 84.8%[57] - The company reported a net profit attributable to shareholders of HKD 367,619, down from HKD 2,376,815, representing a decrease of approximately 85%[79] - The company experienced a foreign exchange loss of HKD 775,802 during the period, impacting overall profitability[66] Segment Performance - The logistics segment reported a profit of HKD 718 million, a slight increase of 0.2% from HKD 717 million in the previous year[17] - The group's international freight business, primarily from the trans-Pacific trade route, accounts for over 80% of revenue, despite a 22% decline in freight volume[19] - In Q2 2023, the group's international freight performance grew by 28% compared to the previous quarter[19] - The overall performance of the integrated logistics business remained stable in the first half of 2023[18] - The total revenue for the logistics segment reached HKD 20,565,326 thousand for the six months ended June 30, 2023, compared to HKD 20,408,930 thousand for the same period in 2022, reflecting a growth of approximately 0.77%[83] - Revenue from the International Freight Forwarding segment was HKD 15,947,479, down from HKD 38,417,874, indicating a decrease of about 58%[81] - Revenue from Mainland China was HKD 8,088,765, a decline of 36% compared to HKD 12,652,059 in the previous period[79] - The electronic commerce and express segment reported revenues of HKD 3,038,878,000 for the six months ended June 30, 2023, slightly down from HKD 3,057,128,000 in the same period of 2022[78] Capital and Investments - Capital expenditure for the first half of 2023 was HKD 5.786 billion, including investments in properties, machinery, and equipment[7] - The company issued convertible securities amounting to HKD 780,000,000 with an annual distribution rate of 3.30%[45] - The net proceeds from the issuance of convertible securities, after transaction costs, were approximately HKD 774,101,000, intended for supporting future growth in Southeast Asia's international express business[45] - The company acquired subsidiaries, contributing HKD 62,392,000 to property, plant, and equipment in the first half of 2023[93] - The total cash consideration paid for the acquisition of a controlling stake in a logistics company was HKD 142,323,000, with additional payable consideration of HKD 10,931,000, totaling HKD 153,254,000[111] Debt and Financial Position - The asset-liability ratio stood at 44.5%[6] - As of June 30, 2023, the total bank loans amounted to HKD 81.96 billion, with HKD 26.51 billion (32%) in foreign currency borrowings[23] - The debt repayment schedule indicates that HKD 28.90 billion (35%) is due within one year, while HKD 19.35 billion (24%) is due in the second year[23] - The group's debt-to-equity ratio improved to 44.5% as of June 30, 2023, down from 48.3% on December 31, 2022[23] - The company reported a significant reduction in bank loans drawn, totaling HKD 2,992,574 compared to HKD 7,730,786 in the previous year[63] - The company has approximately 99% of its bank loans on an unsecured basis, with only HKD 78 million (1%) secured against certain non-current assets[23] Employee and Governance - The group has approximately 36,100 employees, with a competitive salary structure and performance-based compensation policies[24] - The company has implemented a strategy to incentivize employees through share grants, aligning their interests with shareholders[37] - The company has adopted the standard code of conduct for securities trading, with all directors confirming compliance during the reporting period[47] - The company has complied with the corporate governance code during the six months ending June 30, 2023[46] Future Outlook and Strategy - The company is focusing on expanding its logistics capabilities and enhancing operational efficiency amid challenging market conditions[16] - The group anticipates that the Kerry Express Thailand business will stabilize in Q4 2024[22] - The group is actively seeking new market opportunities and developing boutique routes, including a new freight route from Abu Dhabi to Europe and Africa[19] - The company plans to focus on expanding its logistics and international freight forwarding services to recover from the current downturn[80] - The management emphasized the importance of sustainability initiatives, aiming for a 40% reduction in carbon emissions by 2025[117] Shareholder Information - The majority shareholder, Mr. Wang, holds 972,698,478 shares, representing 53.82% of the issued share capital[26] - The company has a total of 4,895,202,373 shares issued as of June 30, 2023[28] - The company declared an interim dividend of HKD 0.09 per share[6] - The group declared an interim dividend of HKD 0.09 per share for the six months ended June 30, 2023, down from HKD 0.28 per share in the same period of 2022[89]

Financial Performance - Revenue decreased by 47% year-on-year to HKD 25.31 billion (first half of 2022: HKD 48.03 billion) [3] - Core operating profit fell by 84% to HKD 568 million (first half of 2022: HKD 3.46 billion) [3] - Core net profit declined by 85% to HKD 368 million (first half of 2022: HKD 2.37 billion) [3] - The profit attributable to shareholders for the first half of 2023 was HKD 368 million, down 85% from HKD 2.38 billion in the same period last year [3] - The international freight business recorded a segment profit of HKD 621 million, down 82% from HKD 3.40 billion in the first half of 2022 [3] - The e-commerce and express business reported a segment loss of HKD 505 million (first half of 2022: HKD 393 million loss) [3] - Total revenue for 2023 was HKD 48,034,324, a decrease from HKD 54,559,322 in 2022, representing a decline of approximately 11.5% [12] - The company reported a core operating profit of HKD 367,561 for 2023, down from HKD 2,371,812 in 2022, a decrease of about 84.5% [12] - The company recorded a net profit attributable to shareholders of HKD 367,619 in 2023, down from HKD 2,376,815 in 2022, a decrease of about 84.6% [12] - The logistics segment's revenue was HKD 6,328,266 in 2023, compared to HKD 6,559,322 in 2022, reflecting a decrease of approximately 3.5% [14] - The company reported a loss of HKD 275,643 from joint ventures and associates in 2023, compared to a profit of HKD 82,596 in 2022 [12] Dividends and Earnings - The interim dividend per share is HKD 0.09, to be paid on or around September 22, 2023 [3] - The basic earnings per share for the first half of 2023 was HKD 0.20, compared to HKD 1.32 in the first half of 2022 [4] - The company declared an interim dividend of HKD 0.09 per share for the first half of 2023, down from HKD 0.28 per share in the same period of 2022 [22] Assets and Liabilities - Total assets less total liabilities stood at HKD 21.23 billion as of June 30, 2023 [7] - Non-current liabilities amounted to HKD 7.78 billion as of June 30, 2023 [7] - Total bank loans amounted to HKD 8.196 billion as of June 30, 2023, a decrease from HKD 8.813 billion at the end of 2022 [31] - The company had capital commitments of HKD 1.979 billion as of June 30, 2023, down from HKD 2.054 billion at the end of 2022 [30] - The total trade receivables as of June 30, 2023, were HKD 8,629,897, a decrease from HKD 10,198,194 as of December 31, 2022 [27] - The asset-to-liability ratio improved to 44.5% as of June 30, 2023, down from 48.3% at the end of 2022 [42] - As of June 30, 2023, the company had unused bank loans and credit facilities totaling HKD 6.496 billion available for significant capital expenditures [42] Operational Insights - The company plans to focus on market expansion and new product development to improve future performance [13] - The company's revenue from the integrated logistics segment for the first half of 2023 was significantly impacted by the performance of its three main business segments: integrated logistics, e-commerce and express, and international freight forwarding [15] - The total operating expenses for the first half of 2023 were HKD 18,946,476, compared to HKD 38,128,166 in the same period of 2022, indicating a significant reduction in costs [17] - Financing costs increased to HKD 275,643 in the first half of 2023 from HKD 150,592 in the same period of 2022, primarily due to higher interest expenses on bank loans [18] - The company experienced a more than 30% quarter-on-quarter growth in the second quarter of 2023, despite an 85% year-on-year decline in core net profit [36] - The company anticipates improvement in its Hong Kong logistics business due to economic recovery and increased retail activity [36] - Kerry Express Thailand is expected to stabilize by Q4 2024 despite ongoing losses in the e-commerce and express delivery segment [37] - The company is focused on strategic adjustments and cost improvements to capture market recovery opportunities [41] Compliance and Governance - The company is registered in the British Virgin Islands and has been listed on the Hong Kong Stock Exchange since 2000 [9] - The group operates in logistics, freight forwarding, e-commerce, and express services [9] - The unaudited interim financial data is prepared in accordance with Hong Kong Accounting Standards and is consistent with the annual financial statements for the year ended December 31, 2022 [9] - The group has adopted new accounting standards effective from January 1, 2023, with no significant impact on accounting policies [10] - The company has maintained compliance with corporate governance codes and standards throughout the reporting period [44] Future Outlook - The company plans to sell equity in ten subsidiaries engaged in express services in the Asia-Pacific and Europe regions for approximately HKD 243.196 million [33] - The company is enhancing its sustainability practices in line with international standards and plans to disclose climate-related financial assessments in 2024 [40] - The company will adopt new accounting standards that are yet to come into effect, expected to have no significant impact on the interim financial data [10]