Financial Performance - Total revenue for the year reached HKD 86,649 million, representing a 10% increase compared to the previous year[9]. - Core operating profit was HKD 4,703 million, reflecting a 12% growth year-over-year[9]. - Shareholders' profit attributable increased by 8% to HKD 3,579 million, with a core net profit of HKD 3,572 million, up 11%[9][12]. - In 2022, the group's revenue increased by 10% to HKD 86.649 billion, compared to HKD 78.955 billion in 2021[28]. - Core net profit rose by 11% to HKD 3.579 billion, compared to HKD 3.220 billion in 2021[28]. - Total annual profit for 2022 was HKD 3,820,018, significantly lower than HKD 9,030,596 in 2021, indicating a decrease of approximately 57.7%[199]. - Basic earnings per share from continuing operations increased to HKD 1.98 in 2022, compared to HKD 1.84 in 2021, showing an increase of about 7.6%[199]. - The company reported no profit from discontinued operations in 2022, while it recorded HKD 4,765,506 in 2021[199]. Dividends and Payouts - The company declared a final dividend of HKD 0.38 per share, maintaining a total payout ratio of 48.3%[9]. - 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[99]. - The board proposed a final dividend of HKD 0.38 per share for the year ended December 31, 2022, subject to shareholder approval[133]. Capital Expenditures and Investments - Capital expenditures for the year amounted to HKD 7,480 million, with significant investments in logistics facilities and acquisitions[15]. - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency[9]. - A strategic acquisition of a local logistics firm is in progress, expected to enhance operational efficiency and expand service offerings[106]. Logistics and Market Performance - The logistics segment achieved a profit of HKD 1,375 million, marking a 28% increase[9]. - The international freight segment saw a profit margin of 3%, indicating stable performance amidst market fluctuations[9]. - The integrated logistics segment recorded a profit increase of 28% due to rising service demand in Hong Kong[30]. - The international freight segment experienced only a 3% decline in profit despite significant market volatility[34]. Sustainability and Corporate Governance - The company has established a new sustainability committee in Q4 2022 to support its commitment to achieving net-zero emissions by 2050[24]. - The company aims to achieve net-zero emissions by 2050 and is implementing green logistics solutions[36]. - The board is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[55]. - The company has a policy to ensure compliance with all applicable laws, rules, and regulations through the company secretary's oversight[100]. Risk Management and Compliance - The risk management committee evaluated the company's risk management system and provided recommendations for improvement, focusing on financial, operational, and compliance controls[87]. - The company has implemented a whistleblowing policy to allow employees and stakeholders to confidentially raise concerns about any potential misconduct[93]. - The company has established mechanisms for correcting internal control deficiencies, with department heads held accountable for addressing issues across legal, regulatory, and operational aspects[94]. Awards and Recognition - Kerry Logistics Network has won a total of 120 awards, including corporate and industry accolades, highlighting its performance and service excellence[47]. - The company received multiple awards in 2022, including the Best Sustainable Development Team and the Outstanding Dividend Growth Award from the ESG Leading Companies Awards[48]. - The company was recognized as the Best Third-Party Logistics Provider at the Asia Freight Logistics and Supply Chain Awards in 2022[50]. Employee and Management Structure - The company employs approximately 43,900 staff, with a competitive salary structure and various employee benefits including training programs[41]. - The company has a structured process for the appointment, re-election, and removal of directors, ensuring compliance with company rules[59]. - The company has established a management trainee program to cultivate potential future leaders since 2001, addressing reliance on key management personnel[129]. Acquisitions and Related Party Transactions - The company acquired Topocean in California for a total consideration of up to $240 million, which will become a wholly-owned subsidiary[152]. - The company agreed to acquire certain transportation and operational assets from SF Tyson for a total consideration not exceeding RMB 50 million[153]. - The independent non-executive directors confirmed that the related party transactions for the year ended December 31, 2022, were conducted in the ordinary course of business and on normal commercial terms[166]. Financial Management and Reporting - The financial statements for the year ended December 31, 2022, have been audited by PwC, confirming that they present a true and fair view of the company's financial position[186]. - The company’s financial reporting process is overseen by the audit and compliance committee, ensuring compliance with Hong Kong Financial Reporting Standards[194]. - The audit aimed to provide reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[195].

Financial Performance - Revenue increased by 10% to HKD 86.65 billion (2021: HKD 78.95 billion) [3] - Core operating profit decreased by 12% to HKD 4.79 billion (2021: HKD 5.44 billion) [3] - Core net profit grew by 11% to HKD 3.57 billion (2021: HKD 3.22 billion) [3] - Shareholders' profit attributable increased by 8% to HKD 3.58 billion (2021: HKD 3.31 billion), but down 55% year-on-year when including profit from discontinued operations [3] - Integrated logistics business recorded segment profit of HKD 1.38 billion, an increase of 28% (2021: HKD 1.07 billion) [3] - E-commerce and express business reported a segment loss of HKD 826 million (2021: profit of HKD 41 million) [3] - International freight business recorded segment profit of HKD 4.70 billion, a slight decrease of 3% (2021: HKD 4.83 billion) [3] - Total revenue for the company reached 86,649,463 thousand, representing a significant increase compared to the previous period [14] - The core operating profit was reported at 4,790,236 thousand, showing a decrease from 5,441,661 thousand in the prior year [14] - The company achieved a net profit attributable to shareholders of 3,579,191 thousand, compared to 3,308,813 thousand in the previous year [14] - The group reported total revenue of HKD 86,649,463,000 for 2022, an increase from HKD 81,771,139,000 in 2021, representing a growth of approximately 6.5% [16] - The group recorded a profit attributable to shareholders of HKD 3.579 billion in 2022, an increase of 8% from HKD 3.309 billion in 2021, excluding profit from discontinued operations [39] Assets and Liabilities - Total assets decreased to HKD 21.25 billion from HKD 24.84 billion year-on-year [7] - Current liabilities decreased to HKD 15.15 billion from HKD 17.84 billion year-on-year [7] - Total equity decreased from 24,836,716 to 21,249,705, representing a decline of approximately 14.5% year-over-year [8] - Retained earnings and other reserves decreased from 16,071,908 to 13,451,213, a reduction of about 16.3% [8] - Non-controlling interests decreased from 3,792,829 to 2,820,611, reflecting a decline of approximately 25.6% [8] - The total amount of receivables net of provisions was HKD 10,198,194,000 for the year ended December 31, 2022, down from HKD 12,846,989,000 in 2021 [30] - The total amount of payables was HKD 4,531,800,000 for the year ended December 31, 2022, compared to HKD 6,274,910,000 in 2021 [31] - The total bank loans amounted to HKD 8,812,849,000 as of December 31, 2022, an increase from HKD 5,910,510,000 in 2021 [32] - As of December 31, 2022, the group's total bank loans amounted to HKD 88.13 billion, with foreign currency borrowings totaling HKD 27.53 billion, representing 31% of the total [48] - The group's debt-to-equity ratio as of December 31, 2022, was 48.3%, up from 29.0% a year earlier [48] - The group had undrawn bank loans and credit facilities totaling HKD 75.23 billion available for significant capital expenditures as of December 31, 2022 [49] Dividends and Earnings Per Share - Proposed final dividend of HKD 0.38 per share, to be paid on June 8, 2023 [3] - The proposed final dividend is HKD 0.38 per share, totaling HKD 686,821,000 for the year ended December 31, 2022, down from HKD 903,655,000 in 2021 [25] - Basic earnings per share from continuing operations increased to HKD 1.98 for the year ended December 31, 2022, compared to HKD 1.84 in 2021 [27] - Diluted earnings per share from continuing operations rose to HKD 1.98 for the year ended December 31, 2022, compared to HKD 1.83 in 2021 [28] Business Segments and Market Outlook - The company’s primary business segments include logistics, freight, e-commerce, and express services [13] - User data indicated a growth in the mainland China segment, with revenue reaching 21,678,918 thousand, up from 29,233,302 thousand [14] - The Taiwan segment reported revenue of 12,940,465 thousand, reflecting a slight increase from 13,138,273 thousand [14] - The logistics segment generated revenue of HKD 13,155,880,000 in 2022, compared to HKD 12,875,164,000 in 2021, reflecting a year-over-year increase of about 2.2% [16] - The e-commerce and express segment recorded revenue of HKD 6,090,091,000 in 2022, down from HKD 6,927,411,000 in 2021, indicating a decline of approximately 12.1% [16] - The international freight segment's revenue was HKD 67,403,492,000 in 2022, up from HKD 59,152,149,000 in 2021, marking an increase of around 14.5% [16] - The logistics segment's profit increased by 28% in 2022, driven by increased service demand related to the pandemic and a recovery in production activities [40] - The international freight segment's profit decreased by 3% in 2022, reflecting a decline in global demand and orders in the second half of the year [42] - The group plans to maintain growth momentum in the integrated logistics business in 2023, supported by a recovery in retail and household consumption [40] - The group is actively seeking new business opportunities in the international freight segment despite market volatility [43] - The integration with SF Holding has strengthened the group's comprehensive logistics, international freight, and express service capabilities, particularly in Asia [44] - The global logistics market is expected to face significant challenges in 2023 due to geopolitical tensions, inflation, and supply chain restructuring [46] - The group anticipates a notable decline in performance for 2023 compared to the strong results of the first half of 2022, implementing cost management and operational optimization measures [46] - The group is leveraging synergies with SF Holding to explore new market opportunities and enhance its competitive advantage in air, land, and express capabilities [47] Governance and Compliance - The company adopted several amendments to existing standards effective from January 1, 2022, with no significant impact on accounting policies [10] - New standards and amendments are expected to be adopted starting January 1, 2023, with no anticipated significant impact on consolidated financial statements [12] - The group has adhered to corporate governance codes and standards throughout the fiscal year ending December 31, 2022 [51] - The Audit and Compliance Committee consists of two independent non-executive directors and one non-executive director, with the chair being Ms. Huang Yu-Po, who possesses appropriate professional qualifications as per listing rules [53] - The annual financial performance for the year ending December 31, 2022, has been reviewed and deemed compliant with relevant accounting standards and regulations [53] - The annual general meeting is scheduled for May 22, 2023, to discuss the financial results for the year ending December 31, 2022 [54] - Share transfer registration will be suspended from May 17, 2023, to May 22, 2023, to determine the identity of shareholders eligible to attend the annual general meeting [55] - The final dividend will be distributed on June 8, 2023, pending approval at the annual general meeting [55] - The annual report will include all information required by Appendix 16 of the listing rules and will be sent to shareholders in due course [56]

Financial Performance - The company's revenue increased by 39% to HKD 48.034 billion in the first half of 2022, compared to HKD 34.654 billion in the same period of 2021[47]. - Core operating profit rose by 74% to HKD 3.461 billion, up from HKD 1.993 billion year-on-year[47]. - Core net profit increased by 96% to HKD 2.372 billion, compared to HKD 1.212 billion in the previous year[47]. - Shareholders' profit attributable to the company surged by 118% to HKD 2.377 billion, compared to HKD 1.092 billion in the first half of 2021[47]. - The international freight segment reported a profit of HKD 3.398 billion, a significant increase of 140% year-on-year[47]. - The logistics segment achieved a profit of HKD 717 million, reflecting a growth of 28% compared to the previous year[47]. - The gross profit for the same period was HKD 5,288.0 million, compared to HKD 3,493.2 million, reflecting a significant increase of approximately 51.3%[83]. - The company's net profit for the period was HKD 2,694.6 million, down from HKD 3,853.8 million, primarily due to the absence of profit from discontinued operations[83]. - The company's profit for the six months ended June 30, 2022, was HKD 2,694,592, a decrease of 30% compared to HKD 3,853,758 in the same period of 2021[85]. - The total comprehensive income for the period was HKD 1,724,630, down 50% from HKD 3,448,190 year-on-year[85]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.28 per share[8]. - The company declared an interim dividend of 506,079 thousand HKD for the period, compared to 381,208 thousand HKD in the prior year, representing an increase of approximately 33%[90]. Debt and Financial Position - The asset-liability ratio stood at 58.4%, indicating a stable financial position[8]. - As of June 30, 2022, the company's total bank loans amounted to HKD 10.463 billion, with foreign currency borrowings totaling HKD 3.641 billion, representing 35% of the total[55]. - The company's debt-to-equity ratio as of June 30, 2022, was 58.4%, up from 29.0% on December 31, 2021[58]. - The company's total equity decreased to HKD 21,451,710 from HKD 24,836,716 at the end of 2021, a decline of approximately 13%[87]. - The company incurred a net cash outflow from investing activities of HKD 1,030,466, compared to HKD 1,999,793 in the previous year[88]. Employee and Operational Insights - The company has approximately 49,700 employees as of June 30, 2022, with a competitive salary structure and various employee benefits[59]. - Employee benefits expenses amounted to HKD 3,975,144, up from HKD 3,023,934, indicating a growth of approximately 31%[120]. Market Outlook and Strategic Plans - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[47]. - The company expects overall market conditions to decline in the second half of 2022 due to rising interest rates, inflation, and ongoing pandemic impacts[54]. - Future guidance indicates expected revenue growth of 15-20% for the second half of 2022, driven by increased demand and market expansion efforts[114]. - The company is focusing on strategic acquisitions to enhance its competitive position in the market[114]. Acquisitions and Investments - The company completed the acquisition of Topocean for a total consideration of up to $240 million, which will become a wholly-owned subsidiary[76]. - The company also acquired the remaining 39% interest in Jiafeng International Freight Limited for a total consideration of up to HKD 592.4 million, making it a wholly-owned subsidiary[76]. - The total cash consideration paid for acquisitions during the period amounted to HKD 887,728,000, with additional payable consideration of HKD 1,462,298,000, totaling HKD 2,350,026,000[141]. - The acquired businesses contributed revenue of HKD 3,624,356,000 and net profit of HKD 169,857,000 during the period from acquisition dates to June 30, 2022[142]. Sustainability and Corporate Governance - The company aims to achieve net-zero emissions by 2050 and is expanding its focus to include Scope 3 emissions in its sustainability disclosures[53]. - The company has complied with the corporate governance code throughout the reporting period[74]. - The company has maintained compliance with the standard code of conduct for securities trading during the reporting period[75]. Financial Instruments and Fair Value - The company’s financial instruments are categorized into three levels based on the observability of inputs used in their valuation[96]. - The company utilized discounted cash flow and market methods to determine the fair value of convertible bonds, incorporating unobservable data such as equity fair value and historical volatility[106]. - The company confirmed that there were no changes in valuation techniques during the reporting period[104]. Segment Performance - Revenue from the logistics segment reached HKD 6,522,267, showing a growth of 3.4% from HKD 6,305,086 in the prior year[111]. - E-commerce and express revenue decreased to HKD 3,057,128, down 9.0% from HKD 3,355,744 in the previous year[111]. - The total revenue for the integrated logistics segment was HKD 6,522,267, a significant increase from HKD 6,305,086 in the previous year, representing a growth of approximately 3.5%[115].

Financial Performance - Revenue for the year 2021 reached HKD 81,771 million, representing a 53% increase compared to the previous year[9] - Core operating profit was HKD 6,229 million, an increase of 88% year-on-year[9] - Shareholders' profit attributable to the company was HKD 7,939 million, reflecting a 174% growth from the previous year[9] - Core net profit increased by 102% to HKD 3,692 million[9] - The group's revenue increased by 53% to HKD 81.77 billion in 2021, compared to HKD 53.36 billion in 2020[30] - Core operating profit rose by 88% to HKD 6.23 billion in 2021, up from HKD 3.32 billion in 2020[31] - Core net profit increased by 102% to HKD 3.69 billion in 2021, compared to HKD 1.83 billion in 2020[31] - Shareholders' profit attributable to the company surged by 174% to HKD 7.94 billion in 2021, from HKD 2.90 billion in 2020[31] - The annual profit attributable to shareholders was HKD 7,938,653, compared to HKD 2,895,757 in the previous year, marking an increase of around 174.5%[189] Logistics Operations - The company operates over 51,000 square feet of facilities globally and employs more than 6,900 staff[6] - The company has over 4,500 self-owned operational vehicles[6] - The company is focused on expanding its logistics network in Asia, particularly in China[6] - The logistics industry faced unprecedented challenges in 2021, but also created significant opportunities for flexible and innovative supply chain solutions[28] - The group’s logistics operations in mainland China recorded a 33% growth due to increased manufacturing activities driven by procurement orders returning from other Asian countries[37] - The comprehensive logistics business in Hong Kong contracted by 14% due to the sale of warehouses and social distancing measures impacting retail activities[34] - The company reported a significant increase in logistics services, expanding its operations from Hong Kong to mainland China and further into Europe, America, and Africa[93] Strategic Partnerships and Acquisitions - A strategic partnership with SF Holding was established to enhance the group's logistics capabilities in response to supply chain disruptions[39] - The company launched a new trans-Pacific air freight service connecting multiple locations in Asia to the United States on September 5, 2021[38] - The acquisition of Apex Group was completed, with the company holding 100% ownership after purchasing the remaining 49% in 2020, enhancing its position as a major player in trans-Pacific trade logistics[94] - The company plans to acquire Topocean Consolidation Service (Los Angeles), Inc. for a total consideration of up to $240 million[124] Corporate Governance - The company has established a board committee to oversee corporate governance and ensure compliance with applicable laws and regulations[55] - The board of directors is responsible for major decisions, including policy approval, overall strategy, and risk management systems[56] - The company has implemented a formal onboarding process for newly appointed directors to ensure they understand the business and their responsibilities[59] - The board's composition includes both executive and non-executive directors, ensuring a diverse range of perspectives[56] - The company has established a governance framework to ensure compliance with legal and regulatory requirements[74] - The company emphasizes the importance of independent non-executive directors in its governance structure[75] - The company has established clear written terms of reference for each of the five committees to ensure accountability and transparency[66] Risk Management - The risk management committee was formed in November 2015, focusing on evaluating the company's risk management system and providing recommendations to the board[80] - The board believes that the risk management and internal control systems are effective and sufficient, having been reviewed annually by the audit and compliance committee and the risk management committee[83] - The risk management system aims to manage risks rather than eliminate them, providing reasonable assurance against significant misstatements or losses[83] - The company has implemented a whistleblowing policy to allow employees and related parties to confidentially report any potential misconduct[85] Sustainability and ESG - The company has received multiple accolades for its ESG performance, including the ESG Leading Enterprise Award from Bloomberg Businessweek in 2021[42] - The company is committed to sustainability initiatives, aiming to reduce its carbon footprint through improved logistics practices and technology[94] - The company achieved ISO 14001 international certification, reflecting its commitment to high environmental standards and sustainable operations[110] Market Expansion and Future Outlook - The company has plans for market expansion and new product development in the upcoming fiscal year[6] - The company aims to enhance its market presence through strategic acquisitions and partnerships, leveraging its strong financial position[92] - The company has set ambitious performance targets for the upcoming fiscal year, aiming for a revenue growth of over 15%[92] - Future outlook includes continued investment in technology and infrastructure to improve service efficiency and customer satisfaction[93] Financial Position and Liabilities - As of December 31, 2021, the group's total bank loans amounted to HKD 5.911 billion, with HKD 2.649 billion (approximately 62%) due within one year[40] - The group's asset-to-liability ratio as of December 31, 2021, was 29.0%, down from 33.6% in 2020[40] - The total unused bank loans and overdraft credit available as of December 31, 2021, was HKD 8.283 billion, which can be allocated for significant capital expenditures[40] - The group maintained 96% of its bank loans as unsecured debt, with only HKD 243 million (approximately 4%) being secured[40] Awards and Recognition - The group received 102 awards in total, including corporate awards, industry awards, and recognitions from clients and business partners[46] - The company was recognized as the best third-party logistics service provider and best logistics service provider for sea freight in the 2021 Asia Cargo News Awards[51] - The company was awarded the 2021 Global Supply Chain Management Award in Hong Kong[54] Shareholder Information - The final dividend declared was HKD 0.50 per share[9] - The company aims to distribute approximately 30% of its core net profit to shareholders as dividends for each fiscal year, subject to board discretion and shareholder approval[88] - The board has proposed a final dividend of HK$0.50 per share for the year ended December 31, 2021, subject to shareholder approval[125]

Financial Performance - The company's revenue increased by 68% to HKD 36.709 billion in the first half of 2021, compared to HKD 21.885 billion in the same period of 2020[16]. - Core operating profit rose by 70% to HKD 2.536 billion, up from HKD 1.489 billion year-on-year[16]. - Shareholders' profit attributable increased by 215% to HKD 3.380 billion, compared to HKD 1.073 billion in the previous year[16]. - Net profit for the period was HKD 3,853,758 thousand, a significant increase of 189.2% compared to HKD 1,335,389 thousand in 2020[67]. - Basic earnings per share rose to HKD 1.88, compared to HKD 0.61 in the same period last year, reflecting a 208.2% increase[66]. - The total comprehensive income for the six months ended June 30, 2021, was HKD 3,066,348,000, compared to HKD 706,060,000 in the previous year[74]. - The company reported a total income tax expense of HKD 480,680,000 for the six months ended June 30, 2021, compared to HKD 278,861,000 for the same period in 2020, reflecting an increase of 72.3%[106]. Revenue Segments - The international freight segment saw a remarkable growth of 279%, with a profit of HKD 1.437 billion compared to HKD 0.379 billion in the same period last year[17]. - The logistics segment's profit increased by 13%, reaching HKD 1.292 billion, driven by the growth in Hong Kong warehousing and logistics operations[17]. - International freight revenue surged to HKD 25,184,909 for the six months ended June 30, 2021, compared to HKD 12,507,732 in 2020, marking an increase of 101.4%[97]. - Revenue from Hong Kong was 4,003,003 thousand HKD, while revenue from mainland China was 11,266,612 thousand HKD, showing significant contributions from both regions[99]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.211 per share, reflecting a strong performance[7]. - The interim dividend declared for the six months ended June 30, 2021, is HKD 0.211 per share, compared to HKD 0.11 per share for the same period in 2020, representing an increase of 91%[108]. - The record date for the interim dividend is set for September 13, 2021, with payment scheduled for September 28, 2021[62]. Debt and Financial Position - The asset-to-liability ratio stands at 30.8%, with a net ratio of 7.1%[7]. - As of June 30, 2021, total bank loans amounted to HKD 90.38 billion, with HKD 53.28 billion (approximately 59%) due within one year[28][29]. - The group's debt-to-equity ratio improved to 30.8% from 33.6% as of December 31, 2020[29]. - The company reported a net cash decrease of HKD 1,214,583,000 for the period, compared to an increase of HKD 389,662,000 in the previous year[71]. Market Trends and Strategic Initiatives - The logistics industry is shifting towards customized services due to disruptions caused by the pandemic, presenting both challenges and opportunities for third-party logistics providers[18]. - E-commerce business is projected to continue growing as online shopping becomes integral to daily life[26]. - The group plans to enhance its product offerings and provide customized solutions to address global supply chain challenges[26]. - Future guidance indicates a continued focus on revenue growth and market expansion, with expectations of further increases in both domestic and international markets[100]. Acquisitions and Investments - The group completed the acquisition of the remaining 49% interest in Apex for USD 176,132,511 (approximately HKD 1,372,432,000), enhancing its market position[105]. - The company acquired approximately 51% equity in Logistikus Express Philippines, Inc., a local logistics service provider based in China and the Philippines, indicating strategic market expansion[125]. - The company has identified strategic acquisition opportunities to bolster its market position and diversify its service offerings[100]. Operational Highlights - The company's operations in mainland China showed a robust recovery, with a segment profit growth of 82% driven by increased production and online shopping demand[21]. - Kerry Logistics Network has established a solid foothold in half of the world's emerging markets, with operations in 60 countries and territories[138]. - The company is actively involved in cross-border e-commerce logistics, catering to the growing demand in this sector[138]. Financial Risks and Management - The group is exposed to various financial risks, including market risk, credit risk, and liquidity risk, with no changes in the risk management framework since the end of the previous year[80]. - The company has not made any withholding tax provisions for undistributed profits of certain subsidiaries, indicating a strategic decision to manage temporary differences[107]. Corporate Governance and Compliance - The mid-term financial report has been reviewed by the audit and compliance committee and the independent auditor, confirming compliance with relevant standards[60]. - The independent auditor conducted the review in accordance with the relevant Hong Kong standards and found no material discrepancies[64]. - The company has adhered to the corporate governance code and the standard code of conduct throughout the reporting period[56].

Financial Performance - The company's revenue increased by 10% to HKD 21.885 billion in the first half of 2020, compared to HKD 19.810 billion in the same period of 2019[14]. - Core operating profit rose by 12% to HKD 1.489 billion, up from HKD 1.330 billion year-on-year[14]. - Core net profit increased by 26% to HKD 845 million, compared to HKD 669 million in the previous year[14]. - Shareholders' profit attributable to the company was HKD 1.073 billion, reflecting a 29% increase when excluding the profit from the sale of two warehouses in Hong Kong recorded in the first half of 2019[15]. - The company declared an interim dividend of HKD 0.11 per share, with a payout ratio of 32% based on core net profit[10]. - Net profit for the period was HKD 1,335,389 thousand, a decrease of 56.3% from HKD 3,057,941 thousand in the previous year[73]. - Basic earnings per share decreased to HKD 0.61 from HKD 1.63, reflecting a decline of 62.6%[72]. - The company reported a decrease in other comprehensive income, resulting in total comprehensive income of HKD 917,183 thousand, down from HKD 3,151,850 thousand in 2019[73]. - The company reported a net cash increase of HKD 389,662, compared to HKD 1,698,392 in the previous year, indicating a significant decrease of approximately 77%[77]. - The company paid dividends totaling HKD 322,917, an increase from HKD 273,954 in the previous year, representing a rise of about 18%[77]. Segment Performance - The international freight segment saw a significant growth of 40% in profit, reaching HKD 403 million compared to HKD 288 million in the previous year[15]. - The logistics operations segment recorded a slight profit increase of 1% to HKD 905 million, while the Hong Kong warehouse segment experienced a decline of 13% to HKD 234 million[15]. - Hong Kong logistics business recorded a 13% growth, shifting focus to meet pandemic-related institutional demands[18]. - Mainland China logistics segment profit dropped by 37% in the first half of 2020, but is expected to improve as the market recovers[21]. - Taiwan logistics segment profit grew by 11% year-on-year, driven by strong last-mile delivery capabilities and robust performance in the pharmaceutical logistics sector[22]. - Asian logistics segment profit increased by 6%, with Kerry Express Thailand showing a remarkable 36% profit growth in the first half of 2020[23]. - Revenue from logistics operations was HKD 9,510,786, slightly down from HKD 9,538,453 in the previous year[95]. - The company's international freight revenue reached HKD 12,507,732, up from HKD 10,291,668 in 2019[97]. Operational Adaptability - The company demonstrated strong adaptability and flexibility in response to the COVID-19 pandemic, achieving growth despite significant market volatility[16]. - The last-mile delivery and e-commerce logistics businesses showed strong growth, contributing positively to the overall logistics performance[17]. - The company plans to adapt to the "new normal" by enhancing capabilities in e-commerce and humanitarian logistics[32]. - Kerry Logistics continues to provide land freight services along the China-CIS-Europe route despite COVID-19 challenges, supporting customer supply chains[127]. - The Group has seen a significant volume surge for land-bridge services between China and Europe, as well as between China and the Indochina Peninsula[128]. Financial Position and Debt - The asset-to-liability ratio stood at 37%, with a net ratio of 12%[5]. - As of June 30, 2020, the group's debt-to-equity ratio was 37.0%, up from 34.6% on December 31, 2019[35]. - The total bank loans amounted to HKD 88.43 billion, with HKD 57.83 billion (approximately 65%) being foreign currency borrowings[34]. - Of the total bank loans, HKD 34.78 billion (39%) is due within one year, HKD 27.88 billion (32%) within the second year, and HKD 25.77 billion (29%) within three to five years[34]. - The total liabilities as of June 30, 2020, were reported at HKD 1,163,848,000[86]. - The total amount of secured bank loans decreased to HKD 912,173,000 as of June 30, 2020, from HKD 1,019,537,000 as of December 31, 2019[121]. Shareholder Structure - Kerry Group Limited holds a significant 63.35% stake in Kerry Construction Limited with 1,136,477,551 shares[53]. - Kerry Holdings Limited owns 60.80% of Kerry Construction Limited, amounting to 1,090,744,073 shares[53]. - The ownership data reflects the status as of June 30, 2020, indicating stable shareholder structures[44][45][46][47][48][49][50][51][52]. - The total equity of directors in Kerry Construction Limited is approximately 0.31% for Guo Konghua and 0.06% for Ma Rongkai[43]. - The data indicates a diversified ownership structure across multiple entities within the group[53]. Stock Options and Incentives - The company granted a total of 42,770,000 stock options under the pre-IPO stock option plan, representing 2.58% of the issued share capital as of December 19, 2013[55]. - As of June 30, 2020, a total of 17,124,500 stock options granted under the pre-IPO stock option plan remained unexercised, accounting for approximately 0.95% of the issued share capital[60]. - The stock option plans aim to incentivize and reward eligible participants for their contributions to the company[59]. - The company has granted a total of 2,678,931 shares under the share incentive plan, representing approximately 0.15% of the issued share capital as of June 30, 2020[63]. - The maximum number of shares that can be granted under the share incentive plan is capped at 10% of the total issued shares[63]. Future Outlook and Strategy - The company plans to continue focusing on investment in technology and market expansion to drive future growth[72]. - The company plans to expand its market presence in Europe, the Middle East, and Africa, aiming for a revenue increase in these regions[96]. - The company is focusing on new technology development to enhance operational efficiency and customer service[96]. - The company completed the acquisition of the remaining 49% stake in Apex for USD 176,132,511 (approximately HKD 1,372,432,000), enhancing its market position[101]. Compliance and Governance - The company has complied with the corporate governance code during the six months ending June 30, 2020[64]. - The interim financial statements have been reviewed by the independent auditor, confirming no material discrepancies[71]. - No significant events requiring disclosure have occurred since the last annual report[67].

Financial Performance - The company's revenue for 2019 reached HKD 41,139 million, an increase of 7.9% compared to HKD 38,139 million in 2018[14]. - Operating profit for 2019 was HKD 5,201 million, representing a significant increase of 49% from HKD 3,492 million in 2018[14]. - The net profit attributable to shareholders for 2019 was HKD 3,788 million, up 55% from HKD 2,440 million in 2018[14]. - The company reported a core profit of HKD 1,374 million for 2019, slightly up from HKD 1,326 million in 2018[14]. - The company's revenue increased by 8% to HKD 41.139 billion in 2019, compared to HKD 38.139 billion in 2018[30]. - Core operating profit rose by 17% to HKD 2.765 billion in 2019, up from HKD 2.364 billion in 2018[30]. - Core net profit increased by 4% to HKD 1.374 billion in 2019, compared to HKD 1.326 billion in 2018[30]. - The overall logistics business recorded a segment profit growth of 15% in 2019[33]. - The Hong Kong logistics business achieved a 6% growth despite social unrest, with segment profit rising by 23%[34]. - The mainland China logistics business saw a segment profit increase of 22% due to cost efficiency improvements[34]. - The international freight business recorded a segment profit growth of 13%, contributing 20% to total segment profit[37]. Assets and Investments - Total assets as of 2019 amounted to HKD 38,223 million, an increase from HKD 30,714 million in 2018[14]. - The group completed the acquisition of 49% stake in Apex, a global third-largest non-vessel carrier, for approximately USD 176 million, with 30% paid in cash and 70% through share issuance[44]. - As of December 31, 2019, the group's bank loan total was HKD 81.22 billion, with 66% of the loans being foreign currency denominated[44]. - The group has approximately HKD 118.01 billion in unused bank loans and overdraft facilities available for significant capital expenditures as of December 31, 2019[46]. - The group plans to complete a 646,000 square feet logistics center in Guangzhou by Q4 2021 and an 827,000 square feet logistics center in Dubai by Q2 2021[43]. Logistics and Operations - The company has over 10,000 self-owned operational vehicles, enhancing its logistics capabilities[3]. - The company operates in 55 countries and regions, indicating a broad international presence[3]. - The logistics facilities cover an area of 7,500 square feet, supporting operational efficiency[3]. - The total owned floor area of logistics facilities is approximately 6,366,549 square feet, with a 79.9% occupancy rate for Kerry Siam Seaport in Thailand[24]. - The logistics center in Shanghai has a total area of 1,196,734 square feet, fully occupied at 100%[24]. - The logistics center in Zhengzhou, China, has a total area of 358,979 square feet, also fully occupied at 100%[25]. - The logistics center in Wuhan, China, has a total area of 629,007 square feet, fully occupied at 100%[22]. - The logistics center in Vietnam's Da Nang has a total area of 116,444 square feet, fully occupied at 100%[23]. - The logistics center in Chengdu, China, has a total area of 608,097 square feet, fully occupied at 100%[24]. - The logistics center in Shenzhen, China, has a total area of 464,741 square feet, with a 55.0% occupancy rate[24]. - The logistics center in Longkou, Taiwan, has a total area of 473,087 square feet, with a 49.7% occupancy rate[24]. - The logistics center in Bangkok, Thailand, has a total area of 410,959 square feet, fully occupied at 100%[24]. - The logistics center in Kunshan, China, has a total area of 203,990 square feet, fully occupied at 100%[25]. Employee and Corporate Governance - The group has about 47,200 employees, with a competitive salary structure and performance-based compensation policies[47]. - The company emphasizes the importance of employee development and retention, offering career development opportunities and a supportive work environment[57]. - The company has established a competitive compensation mechanism based on performance, providing additional benefits such as insurance, medical coverage, and sponsorship for further education or training programs[57]. - The company has received written confirmations of independence from all independent non-executive directors, affirming their compliance with independence requirements[129]. - The company has established five committees, including the remuneration committee, audit and compliance committee, nomination committee, finance committee, and risk management committee, to oversee specific areas of governance[131]. - The company has implemented a regular review of its corporate governance practices to ensure compliance with accepted standards[115]. - The board of directors is responsible for overseeing the company's major policies, strategies, and budgets[116]. - The company has established a whistleblowing policy to allow employees and stakeholders to confidentially raise concerns about potential misconduct[153]. Sustainability and Social Responsibility - The company is committed to sustainable development, focusing on creating value in talent, customer service, supply chain, and environmental aspects[48]. - The company's overall sustainability assessment score reached B+, indicating satisfactory performance in managing sustainability practices across strategy, governance, social, and environmental aspects[56]. - The company has implemented an environmental management system certified to ISO 14001 standards across its business units in Hong Kong, China, and Singapore[83]. - The company has installed solar panels on the rooftops of its warehouses in Beijing, saving approximately 40,000 kWh of electricity monthly and reducing related greenhouse gas emissions[84]. - The company plans to install solar panels at nine logistics centers in Taiwan, expected to provide about 3,000,000 kWh of electricity annually, reducing nearly 3,000 kg of carbon emissions[84]. - The company has received the 5-year Plus "Caring Company" logo from the Hong Kong Council of Social Service, highlighting its commitment to corporate social responsibility[76]. - The company supports various charitable activities, including fundraising events and community service initiatives, to promote children's rights and health[77]. - The company donated a total of 236 books and 1,307 pieces of clothing to impoverished individuals in southern Xinjiang, China[78]. - The company has a systematic approach to sustainability practices, ensuring effective management and reporting of its sustainability performance[56]. Technology and Innovation - The company is developing a visual driving assistance system (VDA) in Taiwan to improve driving safety[59]. - The company has installed mobile digital video recorders (MDVR) in its trucks to enhance driver visibility and safety[59]. - The company has established a fully automated smart warehouse in Xiamen, integrating AI and robotics to improve operational efficiency and reduce labor costs in mainland China[65]. - The introduction of IoT technology in international freight aims to provide comprehensive supply chain transparency and security measures, enhancing decision-making for international clients[65]. - The company launched KerrierVISION, a real-time internet-based solution for tracking inventory and shipments, which includes ePOD and Track & Trace systems to monitor delivery status and reduce paper consumption[65]. - The company is investing heavily in R&D, allocating $H million towards new technology development, aiming for a breakthrough in the next fiscal year[168]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a growth rate of F% in that region over the next year[166]. - The company has a clear strategy for market expansion, particularly in Southeast Asia, leveraging its established presence in the region[162]. - The company is focused on integrating logistics services, including freight forwarding, warehousing, and cold chain logistics[177]. - The company has been focusing on enhancing its supply chain capabilities through strategic acquisitions and partnerships, aiming for improved operational efficiency[161]. - The company is committed to improving operational efficiency and overall business performance through innovative strategies[177]. Awards and Recognition - The company has received the "Best Third Party Logistics in Asia" award for the sixth time at the Supply Chain Asia Awards in 2019[64]. - The company has been recognized with the "Platinum Award" at The Asset ESG Corporate Awards for two consecutive years[64]. - The company was recognized as the Best Third-Party Logistics Service Provider in the Asia-Pacific region by Frost & Sullivan[110]. - The company has received multiple industry awards and recognitions for its leadership in the Asian logistics services sector[185]. Future Outlook - Overall, the company remains optimistic about future growth, citing strong market demand and strategic initiatives as key drivers[165]. - The company provided guidance for the next quarter, expecting revenue to be between $B million and $C million, indicating a projected growth rate of D%[170]. - Recent acquisitions are expected to enhance operational efficiency, potentially increasing profit margins by G%[169].

Financial Performance - The company reported a revenue of HKD 38.14 billion for 2018, representing a 24% increase compared to 2017[14]. - Core operating profit increased by 11% to HKD 3.49 billion, while net profit attributable to shareholders rose by 15% to HKD 2.44 billion[8][14]. - The company achieved a core net profit of HKD 1.33 billion, marking a 12% increase year-on-year[14]. - In 2018, the group's revenue increased by 24% to HKD 38.139 billion, with core operating profit rising by 12% to HKD 1.326 billion[32]. - The group's core net profit increased by 12% to HKD 1.326 billion, marking the ninth consecutive year of growth[34]. - The company reported a double-digit growth in revenue, core operating profit, and core net profit for the year ended December 31, 2018, marking the ninth consecutive year of growth[158]. Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.16 per share, reflecting a commitment to returning value to shareholders[8]. - The board has proposed a final dividend of HKD 0.16 per share for the year ended December 31, 2018, subject to approval at the annual general meeting[171]. - As of December 31, 2018, the company reported distributable reserves totaling HKD 1.185 billion, with a proposal to distribute HKD 273 million as the final dividend for the year[173]. - 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[135]. - The company is committed to considering special dividends when circumstances permit, based on operational performance and financial condition[135]. Logistics and Operations - The logistics segment contributed significantly to the revenue, with a notable performance in international freight operations[8]. - The integrated logistics business recorded a segment profit growth of 14%, contributing 79% to the group's total segment profit[35]. - The group's Hong Kong logistics business saw a segment profit increase of 37%, contributing 41% to the integrated logistics business's segment profit[35]. - The company operates a logistics center in Vietnam with a total area of 116,444 square feet, fully occupied at 100%[23]. - The company has expanded its logistics services from Hong Kong to mainland China and further into the Asia-Pacific region, Europe, the Americas, and Africa[141]. - The company has developed a comprehensive logistics service that includes freight forwarding, warehousing, and cold chain logistics[156]. Market Expansion and Growth Strategy - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency[8]. - The group plans to selectively expand and deepen its presence in the Chinese market, with a focus on the Greater Bay Area as a key growth point[30]. - The company is actively exploring potential mergers and acquisitions to bolster growth and market presence[145]. - Future outlook indicates continued expansion in the logistics sector, with a strategic emphasis on enhancing market share in existing regions[145]. - The company is focused on developing new technologies and products to improve service efficiency and customer satisfaction[144]. Technology and Innovation - The group is evolving into a technology company, emphasizing the use of IT, blockchain, and AI in various logistics operations[30]. - The company has developed a real-time internet-based solution, KerrierVISION, which provides personalized support for tracking inventory, freight, purchase orders, and payments[60]. - The mobile tracking application recorded over 4,670,000 downloads by the end of 2018, enhancing customer experience in tracking shipments[61]. - The company is investing in new technology development, allocating $E million towards R&D initiatives aimed at enhancing operational efficiency[150]. - User data indicates a 25% increase in customer engagement through digital platforms, reflecting successful digital transformation efforts[145]. Financial Position and Debt Management - The asset-liability ratio stood at 45.7%, indicating a stable financial position[8]. - As of December 31, 2018, the group's total bank loans amounted to HKD 95.06 billion, with 46% (HKD 43.80 billion) in foreign currency loans[43]. - The group's debt-to-equity ratio increased to 45.7% as of December 31, 2018, compared to 43.1% in the previous year[43]. - The financial review highlighted a financing cost of HKD 224.25 million, which increased from HKD 159.83 million in the previous year[14]. Corporate Governance - The board of directors held four meetings during the year ending December 31, 2018, to discuss and approve the company's overall strategy and policies[107]. - The company has established a nomination committee to oversee the appointment and succession planning of directors, ensuring independent non-executive directors' independence is evaluated[105]. - The company emphasizes the importance of governance transparency and accountability to maximize shareholder benefits[101]. - The company has received the Platinum Award at The Asset Corporate Awards, highlighting its excellence in corporate governance practices[101]. - The company has implemented a whistleblowing policy allowing employees to confidentially raise concerns about potential misconduct[132]. Environmental and Social Responsibility - The group actively integrates environmental, social, and governance (ESG) systems into its core business decisions, reflecting its commitment to sustainable development[46]. - The company has installed solar panels on the roof of its Beijing warehouse, saving approximately 40,000 kWh of electricity per month and reducing greenhouse gas emissions[72]. - The company has committed to responsible waste management practices, encouraging employees to reuse materials before recycling[73]. - The company has achieved ISO14001 international certification for its environmental management system, reflecting its commitment to high environmental standards[161]. - The group made a donation of HKD 1.4 million to charitable projects or organizations during the year[175]. Awards and Recognition - The company received four awards at the 2018 Asia Supply Chain Awards, including "Best Third-Party Logistics in Asia" and "Caring and Positive Work Environment"[59]. - The company was recognized as the Best Logistics and Supply Chain Solutions Company in 2018[94]. - The company received multiple awards in 2018, including the Gold Award for Overall Report and Silver Awards for Cover Design and Photography at the IADA International Limited[95]. - The company has been awarded for its contributions to environmental responsibility and corporate governance[100]. - The company received the Hong Kong Corporate Governance Excellence Award for 2018, recognizing its commitment to shareholder rights and corporate governance standards[101].