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]

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].