Financial Performance - For the fiscal year ending December 31, 2024, revenue was approximately $3,058.1 million, an increase of about 25.9% compared to $2,429.0 million for the fiscal year ending December 31, 2023[3]. - Gross profit increased by approximately 83.4% from $623.0 million for the fiscal year ending December 31, 2023, to approximately $1,142.8 million for the fiscal year ending December 31, 2024, resulting in a gross margin increase from 25.7% to 37.4%[3]. - Profit for the fiscal year ending December 31, 2024, rose by approximately 92.9% to about $1,034.3 million, up from $536.2 million for the fiscal year ending December 31, 2023[3]. - Basic earnings per share for the fiscal year ending December 31, 2024, were $0.39, compared to $0.20 for the fiscal year ending December 31, 2023[3]. - The group's profit before tax for 2024 was $1,915,242 thousand, an increase from $1,805,925 thousand in 2023, representing a growth of approximately 6.06%[26]. - The group's profit for the year ending December 31, 2024, was approximately $1,034.3 million, representing an increase of approximately 92.9% compared to approximately $536.2 million for the year ending December 31, 2023[60]. Revenue and Sales - Total revenue for the year ended December 31, 2024, was $3,058,059 thousand, an increase of 26% from $2,428,959 thousand in 2023[22]. - Revenue from the Greater China region reached $1,473,885 thousand, up 56% from $942,529 thousand in 2023[22]. - Customer contract revenue was $3,055,862 thousand, compared to $2,422,168 thousand in the previous year, reflecting a significant growth[24]. - The company's revenue increased by approximately 25.9% from about $2,429.0 million in 2023 to approximately $3,058.1 million in 2024, driven by a 10.7% increase in container volume and a 15.7% increase in average freight rates[42][47]. - The total container volume rose from 3,224,498 TEUs in 2023 to 3,570,184 TEUs in 2024[42][47]. - The average freight rate (excluding slot exchange fees) increased from $623.3 per TEU in 2023 to $721.1 per TEU in 2024[42][47]. Assets and Equity - Total assets less current liabilities increased to $2,653.3 million for the fiscal year ending December 31, 2024, from $2,149.5 million for the fiscal year ending December 31, 2023[12]. - Non-current assets totaled $2,174.6 million as of December 31, 2024, compared to $2,025.9 million as of December 31, 2023[11]. - Current assets increased to $1,023.5 million for the fiscal year ending December 31, 2024, from $626.6 million for the fiscal year ending December 31, 2023[11]. - The company reported a net asset value of $2,421.5 million as of December 31, 2024, compared to $1,931.1 million as of December 31, 2023[12]. - The company’s total equity increased to $2,421.5 million as of December 31, 2024, from $1,931.1 million as of December 31, 2023[12]. - Total assets increased by approximately 20.6% from about $2,652.5 million as of December 31, 2023, to about $3,198.1 million as of December 31, 2024[62]. Expenses and Costs - Financial costs decreased to $15,676 thousand in 2024 from $18,753 thousand in 2023, primarily due to lower bank loan interest[24]. - The total employee benefits expenses for 2024 amounted to $209,565 thousand, slightly decreasing from $209,916 thousand in 2023, indicating a reduction of about 0.17%[26]. - The group's total tax expense for 2024 was $19,232 thousand, up from $17,240 thousand in 2023, reflecting an increase of approximately 11.55%[29]. - The sales cost rose by approximately 6.1% from about $1,805.9 million in 2023 to approximately $1,915.2 million in 2024, primarily due to increased logistics costs[48]. - Administrative expenses increased by approximately 5.9% from about $136.0 million in 2023 to approximately $144.0 million in 2024, mainly due to rising employee bonus costs[52]. Dividends - A final dividend of HKD 1.40 per share (equivalent to $0.18 per share) was declared for the fiscal year ending December 31, 2024[3]. - The group plans to propose a final dividend of HKD 1.40 per share for 2024, compared to HKD 0.50 per share in 2023, which is an increase of 180%[32]. - A final dividend of HKD 1.40 per share (equivalent to $0.18) is proposed for shareholders, subject to approval at the annual general meeting on April 29, 2025[72]. Operational Insights - The company operates a single business segment focused on container transportation and related services, with no significant changes in operational structure[20]. - Non-current assets primarily consist of vessels, which are utilized for cargo shipping in the Asia cross-regional market[21]. - The company delivered 8 new container ships and 1 second-hand container ship during the year ending December 31, 2024, and entered into agreements to build 4 additional container ships for a total cost of $115.92 million[67]. - The company plans to continue purchasing container ships and investing in logistics projects, expecting internal financial resources and bank loans to be sufficient for funding needs[68]. - The company operated a fleet of 114 vessels with a total capacity of 180,255 TEUs, including 100 owned vessels and 14 leased vessels, with an average age of 8.4 years[41]. Audit and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the annual performance for the year ending December 31, 2024[82]. - Ernst & Young has been appointed as the auditor for the year ending December 31, 2024, with a resolution to be presented at the upcoming annual general meeting for reappointment[83]. - The preliminary announcement of the consolidated financial statements for the year ending December 31, 2024, has been verified against the draft financial statements by the auditor[84]. - The annual performance announcement will be published on the Hong Kong Stock Exchange and the company's website, containing all information required by the listing rules[85].

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 29.70 [6][7]. Core Insights - The company reported strong earnings in Q3, with revenue increasing by 19.2% year-on-year to USD 2.11 billion, and a significant rise in container volume and freight rates [1][2]. - The outlook for Q4 remains positive, driven by seasonal demand in Southeast Asia, with expectations for further increases in both volume and freight rates [1][2]. - The report highlights a structural shift in the industry, with more trade and supply chain activities moving to the Asian region, particularly Southeast Asia, due to geopolitical tensions and supply chain vulnerabilities [3]. Summary by Sections Financial Performance - For the first three quarters, the company achieved a revenue of USD 2.11 billion, with a 19.2% year-on-year growth, and a container volume of 2.55 million TEU, up 11.1% year-on-year [1]. - In Q3 alone, revenue reached USD 810 million, reflecting a 56.6% quarter-on-quarter increase, while the average freight rate rose to USD 809 per TEU, a 44.1% increase from the previous quarter [1][2]. Market Trends - The shipping market has seen a significant increase in freight rates, with the Shanghai Containerized Freight Index (SCFI) and Southeast Asia Freight Index (SEAFI) rising by 212% and 317% year-on-year respectively in Q3 [2]. - The report anticipates continued growth in freight rates and volumes in Q4 due to the traditional peak season in Southeast Asia [2]. Industry Dynamics - The report discusses the ongoing transformation in the industry, with a shift of low-end manufacturing from China to Southeast Asia, enhancing regional supply chain collaboration and increasing trade volumes [3]. - It is projected that the supply of small to medium-sized vessels will grow at a slower pace than demand, leading to tighter supply conditions in the coming years [3]. Earnings Forecast - The net profit forecast for 2024 has been raised by 31% to USD 1.02 billion, with target prices adjusted to HKD 29.70 based on a price-to-earnings ratio of 10.1x for 2024 [4]. - Long-term profit forecasts for 2025 and 2026 have also been increased by 8% and 15% respectively, reflecting positive market conditions and company performance [4].

Revenue and Profitability - For the six months ended June 30, 2024, the company's revenue increased by approximately 3.8% to about $1,300.5 million, compared to approximately $1,253.4 million for the same period in 2023[17]. - Total revenue increased by approximately 3.8% from $1,253.4 million in the six months ended June 30, 2023, to $1,300.5 million in the same period of 2024[20]. - Container shipping and extended logistics revenue rose to $1,160.2 million, compared to $1,142.5 million in the previous year[19]. - Gross profit increased from approximately $332.2 million to $402.6 million, resulting in a gross margin improvement from about 26.5% to 31.0%[22]. - Pre-tax profit increased from approximately $322.2 million to $362.4 million, reflecting a growth of about 12.4%[31]. - Net profit for the period was $352,846 thousand, compared to $312,680 thousand in the prior year, reflecting a year-over-year increase of 12.8%[97]. - Profit before tax increased to $362,378 thousand, representing a growth of 12.5% from $322,241 thousand in the previous year[97]. - For the six months ended June 30, 2024, the company's profit attributable to shareholders was $350,674,000, an increase from $310,297,000 for the same period in 2023, representing a growth of approximately 12.9%[140]. Operational Performance - Container throughput rose by approximately 10.0%, from 1,550,075 TEUs for the six months ended June 30, 2023, to 1,705,164 TEUs for the same period in 2024[17]. - The company operates 78 trade routes, covering 84 major ports across various countries and regions in Asia[15]. - The company aims to optimize its unique operating model, expand service coverage, and enhance route density and direct services to meet customer supply chain management needs[17]. - The company is focused on improving asset turnover and operational efficiency while striving to become a world-class integrated logistics service provider[17]. - The company continues to enhance its fleet structure to maintain long-term cost advantages and reduce harmful gas emissions[17]. Financial Position - Total assets rose by approximately 7.4% from $2,652.5 million to $2,850.0 million[35]. - Total liabilities increased by approximately 1.7% from $721.4 million to $733.7 million[35]. - As of June 30, 2024, the current ratio of the group was approximately 1.5, up from 1.2 on December 31, 2023[36]. - The debt-to-capital ratio was 9.5% as of June 30, 2024, compared to 13.4% on December 31, 2023[36]. - The group had a total of 2,132 full-time employees as of June 30, 2024, with employee costs amounting to approximately $97.4 million, down from $102.2 million a year earlier[40]. - Total non-current assets as of June 30, 2024, amounted to $2,095,954,000, compared to $2,025,878,000 at the end of 2023, indicating a growth of 3.5%[103]. - Current assets increased to $754,007,000 as of June 30, 2024, from $626,585,000 at the end of 2023, marking a rise of 20.3%[103]. - Total liabilities as of June 30, 2024, were $733,709,000, slightly up from $721,405,000 at the end of 2023, showing an increase of 1.8%[105]. - The net asset value increased to $2,116,252,000 as of June 30, 2024, from $1,931,058,000 at the end of 2023, reflecting a growth of 9.6%[106]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2024, was $396,927 thousand, an increase of 8.8% compared to $364,726 thousand in 2023[110]. - Net cash flow from operating activities amounted to $394,317 thousand, up from $368,184 thousand in the previous year, reflecting a growth of 7.1%[110]. - Cash flow used in investing activities was $(138,351) thousand, a significant decrease from $37,679 thousand in 2023, indicating a shift towards cash outflow[110]. - Financing activities resulted in a net cash outflow of $(199,358) thousand, compared to $(657,159) thousand in the prior year, showing an improvement of 69.7%[112]. - The company incurred financial costs of $7,345 thousand, down from $10,511 thousand in the previous year, indicating a reduction of 30.5%[97]. - The company purchased a total of 966,000 shares at an average price of approximately HKD 19.99 per share, totaling about HKD 19.31 million for the share scheme[91]. Shareholder Information - An interim dividend of HK$0.72 per share has been declared for the six months ended June 30, 2024, compared to HK$0.60 for the same period last year[46]. - Major shareholder Yang Shaopeng holds 1,097,794,544 shares, representing 40.92% of the company's equity[84]. - The company declared dividends amounting to $546,782 thousand for the year-end 2022[109]. - The total amount of rewards granted to eligible participants within any twelve months must not exceed 1% of the issued shares[67]. - The company has issued a total of 38,910,871 shares under the share incentive plan, with 4,732,306 shares having vested as of June 30, 2024[59]. Market Outlook - The company believes that the Asian market will continue to experience healthy growth, which is a key focus for its business strategy[14].

Financial Performance - For the six months ended June 30, 2024, revenue was approximately $1,300.5 million, an increase of about 3.8% compared to approximately $1,253.4 million for the same period in 2023[4] - Gross profit for the same period increased by approximately 21.2% to about $402.6 million, with a gross margin rising from approximately 26.5% to about 31.0%[4] - Profit for the six months ended June 30, 2024, rose by approximately 12.8% to about $352.8 million, compared to approximately $312.7 million in the same period of 2023[4] - Basic earnings per share for the period were 13.25 cents, up from 11.70 cents for the same period in 2023[4] - Total comprehensive income for the period was approximately $349.3 million, compared to $291.4 million for the same period in 2023[9] - The company's profit attributable to shareholders for the six months ended June 30, 2024, was $350,674,000, an increase of approximately 12.9% from $310,297,000 for the same period in 2023[30] - The pre-tax profit increased from approximately $322.2 million to about $362.4 million[55] - The profit for the period increased by approximately 12.8%, from about $312.7 million to approximately $352.8 million[57] Dividends and Shareholder Returns - The interim dividend declared was 72 HK cents per share, equivalent to approximately 9.22 US cents per share[4] - The interim dividend declared was $0.072 per share, amounting to a total of $247,264,000, compared to $0.060 per share totaling $205,414,000 in the same period of 2023, representing an increase of 20%[27] - An interim dividend of HKD 0.72 per share (equivalent to USD 0.0922) has been declared for the six months ending June 30, 2024, an increase from HKD 0.60 per share for the same period last year[69] Assets and Liabilities - Non-current assets totaled approximately $2,095.9 million as of June 30, 2024, compared to $2,025.9 million as of December 31, 2023[11] - Current assets increased to approximately $754.0 million as of June 30, 2024, from $626.6 million as of December 31, 2023[11] - The net asset value increased to approximately $2,116.3 million as of June 30, 2024, compared to $1,931.1 million as of December 31, 2023[12] - Total assets increased by about 7.4% from approximately $2,652.5 million to about $2,850.0 million[59] - Trade receivables as of June 30, 2024, totaled $153,423,000, up from $113,333,000 as of December 31, 2023[32] - Trade payables as of June 30, 2024, amounted to $233,318,000, an increase from $203,514,000 as of December 31, 2023[33] Costs and Expenses - The total financial costs for the six months ended June 30, 2024, were $7,345,000, a decrease of 30.5% from $10,511,000 in the same period of 2023[23] - The total tax expense for the six months ended June 30, 2024, was $9,532,000, slightly down from $9,561,000 in the same period of 2023[25] - The company reported a decrease in bank loan interest from $5,616,000 in 2023 to $3,180,000 in 2024, a reduction of 43.3%[23] - The cost of marine fuel consumed was $158,762,000 for the six months ended June 30, 2024, down from $162,742,000 in 2023, indicating a decrease of 2.2%[24] - The employee costs for the period were approximately $97.4 million, down from $102.2 million in the previous year[63] Operational Metrics - Container shipping volume increased by about 10.0% from 1,550,075 TEUs in the six months ended June 30, 2023, to 1,705,164 TEUs in the same period of 2024[39] - Average freight rate decreased by approximately 5.3% from $667.5 per TEU in the six months ended June 30, 2023, to $632.4 per TEU in the same period of 2024[42] - The company operated 78 trade routes as of June 30, 2024, compared to 72 routes in the previous year, with weekly port calls increasing from 443 to 475[42] - The fleet consisted of 108 vessels with a total capacity of 170,380 TEUs, including 99 owned vessels and 9 chartered vessels, with an average vessel age of 9.2 years[37] - Capital expenditures for the first half of 2024 were $130.2 million, with $105.1 million allocated for vessel acquisitions[36] - The company aims to optimize its operational model and expand service coverage to meet customer supply chain management needs[39] - The company plans to continue purchasing container ships and investing in logistics projects, with 6 new container ships expected to be delivered in the second half of 2024[66] Revenue Composition - The total revenue increased by approximately 3.8% from about $1,253.4 million for the six months ended June 30, 2023, to about $1,300.5 million for the same period in 2024, driven by a 10.0% increase in container throughput[43] - The cost of sales decreased by approximately 2.5% from about $921.2 million to about $897.9 million, primarily due to a reduction in the number and cost of chartered vessels[44] - Other income and gains decreased significantly from about $38.9 million to approximately $7.8 million, mainly due to lower gains from vessel sales and derivative instruments[47] - The company did not recognize any ship charter income for the six months ended June 30, 2024, compared to $154,000 in 2023, indicating a complete cessation of this revenue stream[21] - The company’s income from other rental sources increased slightly from $1,043,000 in 2023 to $1,078,000 in 2024, marking a growth of 3.4%[21] Depreciation and Amortization - The depreciation of property, plant, and equipment increased to $54,332,000 in 2024 from $48,173,000 in 2023, reflecting an increase of 12.5%[24]

Key Points Industry/Company Involved - **Company**: Hafuhai International - **Industry**: Shipping and marine transportation Core Views and Arguments - **Global Seafarer Supply Chain Stability**: The stability of the global seafarer supply chain is facing challenges due to the ongoing Honghai incident. - **Long-term Demand**: Despite the challenges, there is a positive outlook for long-term demand. - **China's Export Performance**: China's exports, particularly in the first four months of the year, have exceeded expectations. - **Major Exports**: The exports of China's three major items, including new energy vehicles, photovoltaic cells, and lithium batteries, have also performed well. [1]

Key Points Industry/Company Involved - No specific industry or company mentioned [1]. Core Views and Arguments - No core views or arguments provided [1]. Other Important Content - No other important content provided [1].

Financial Performance - Revenue for 2023 was $2,428,959 thousand, a decrease of 40.9% compared to $4,112,955 thousand in 2022[13] - Profit attributable to shareholders was $531,393 thousand, down 72.7% from $1,944,425 thousand in the previous year[13] - Basic earnings per share decreased to $0.20, a decline of 72.6% from $0.73 in 2022[13] - Operating cash flow net amount was $672,213 thousand, representing a 66.4% decrease from $2,002,565 thousand in 2022[13] - Gross profit for the same period was approximately $623.0 million, down about 68.5% year-on-year[44] - The pre-tax profit was approximately $553.4 million, reflecting a decrease of about 72.0% from the previous year[44] - Net profit for the year ended December 31, 2023, was approximately $536.17 million, a decrease of about 72.5% compared to $1,949.81 million in 2022[60] - Total assets decreased by approximately 14.0% from about $3,082.9 million on December 31, 2022, to about $2,652.5 million on December 31, 2023[61] - Total liabilities decreased by approximately 21.4% from about $917.8 million on December 31, 2022, to about $721.4 million on December 31, 2023[61] - The company's profit before tax dropped to $553.41 million in 2023 from $1,973.04 million in 2022[58] Operational Metrics - The number of container vessels operated at year-end was 103, down from 108 in 2022[13] - Container throughput for container shipping and extended logistics was 3,224,498 TEUs, a slight decrease from 3,261,939 TEUs in 2022[13] - Total container throughput decreased by approximately 1.1% to 3,224,498 TEUs, with average freight rates dropping by 43.3% to $623.3 per TEU[36][44] - The fleet capacity reached 162,851 TEUs, with 97 owned vessels and 6 chartered vessels as of December 31, 2023[38][43] - The company expanded its fleet by taking delivery of 12 new vessels in 2023[38] Strategic Initiatives - SITC expanded its service network by launching the "一單制" rail-sea intermodal service in Tianjin, improving logistics efficiency[23] - The company signed a strategic cooperation agreement with the Chinese Academy of Sciences to promote green methanol applications in shipping logistics[29] - The company aims to enhance its unique business model and expand its service network in Asia, targeting a world-class integrated logistics service provider status[45] - The company is committed to reducing harmful emissions while improving operational efficiency and cash flow[34] Awards and Recognition - The company received multiple accolades in 2023, including being named the "Most Outstanding Company in Hong Kong Transportation Industry" for two consecutive years by Asiamoney[27] - SITC's logistics services were recognized with multiple awards, including "User-Satisfied Container Shipping Company" and "User-Satisfied Freight Forwarding Brand TOP50" in 2023[28] Governance and Management - The board of directors comprises eight members, including four executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[179] - The audit committee consists of three independent non-executive directors, ensuring oversight of the company's annual performance and financial reporting[172] - The company maintains good corporate governance standards, adhering to the principles and code provisions set out in the listing rules[175] - The management team has a proven track record in their respective fields, contributing to the company's growth and stability[79] Risk Management - The company has identified eight major risks for 2023, including "interest rate fluctuation risk" and "bill management risk," while fifteen previously identified risks are no longer considered major[155] - The company has established a risk management organization to address various identified risks and ensure accountability[152] - The company has implemented comprehensive safety systems and operational protocols to mitigate risks associated with shipping and hazardous materials, ensuring regular safety checks and employee training[156] Shareholder Information - The board proposed a final dividend of HK$0.50 per share for the year[44] - The proposed final dividend is HKD 0.50 per ordinary share, equivalent to USD 0.0639, subject to shareholder approval on April 26, 2024[90] - The company's distributable reserves amounted to approximately USD 541 million as of December 31, 2023[97] Environmental Commitment - The company is committed to environmental sustainability, adhering to IMO 2020 regulations and implementing measures to reduce fuel consumption and improve operational efficiency[161] - The company has faced a fine of $1.705 million due to violations of maritime law and antitrust regulations, with an appeal currently pending[164] Employee Relations - Employee costs for the period were approximately $209.9 million, down from $240.1 million on December 31, 2022[66] - The company emphasizes equal opportunity employment and provides training and development programs to enhance employee skills and knowledge[167][170] - The company prioritizes health and safety, offering medical insurance benefits and health awareness programs for employees[168]

Financial Performance - For the year ended December 31, 2023, revenue was approximately $2,429.0 million, a decrease of about 40.9% compared to approximately $4,113.0 million for the year ended December 31, 2022[3]. - Gross profit decreased by approximately 68.5% from approximately $1,979.1 million for the year ended December 31, 2022, to approximately $623.0 million for the year ended December 31, 2023, resulting in a gross margin decline from approximately 48.1% to approximately 25.7%[3]. - Profit for the year decreased by approximately 72.5% from approximately $1,949.8 million for the year ended December 31, 2022, to approximately $536.2 million for the year ended December 31, 2023[3]. - Basic earnings per share for the year ended December 31, 2023, was $0.20, down from $0.73 for the year ended December 31, 2022[3]. - Total revenue for 2023 was $2,428,959 thousand, a decrease of 41% from $4,112,955 thousand in 2022[29]. - Customer contract revenue accounted for $2,422,168 thousand, down from $4,102,223 thousand in the previous year[31]. - The company reported a pre-tax profit of $17,240 thousand for the year, down from $23,235 thousand in 2022[37]. - The company's profit attributable to shareholders for 2023 was $531,393,000, a significant decrease from $1,944,425,000 in 2022, representing a decline of approximately 72.6%[42]. - Net profit for the year was approximately $536.2 million, a decrease of about 72.5% compared to $1,949.8 million in 2022[73]. Dividends and Shareholder Returns - The final dividend declared for the year ended December 31, 2023, was HK$0.50 per share (equivalent to US$0.0639)[3]. - The company plans to propose a final dividend of HKD 0.50 per share, equivalent to approximately USD 0.06, compared to HKD 1.60 per share in 2022[39]. - The proposed final dividend is $0.0639 per share, subject to shareholder approval on April 26, 2024[86]. Assets and Liabilities - Total assets less current liabilities as of December 31, 2023, was $2,149.5 million, compared to $2,594.5 million as of December 31, 2022[12]. - Non-current assets increased from $1,853.9 million as of December 31, 2022, to $2,025.9 million as of December 31, 2023[11]. - Current assets decreased from $1,228.9 million as of December 31, 2022, to $626.6 million as of December 31, 2023[11]. - Total equity decreased from $2,165.0 million as of December 31, 2022, to $1,931.1 million as of December 31, 2023[12]. - Total assets decreased by approximately 14.0% from about $3,082.9 million on December 31, 2022, to about $2,652.5 million on December 31, 2023[75]. - Total liabilities decreased by approximately 21.4% from about $917.8 million on December 31, 2022, to about $721.4 million on December 31, 2023[75]. Operational Highlights - The group operates a single business segment focused on container transportation, freight forwarding, and related services, indicating a streamlined operational structure[21]. - Container throughput decreased by approximately 1.1% from 3,261,939 TEUs in 2022 to 3,224,498 TEUs in 2023[51]. - Average freight rates dropped by approximately 43.3%, from $1,099.6 per TEU in 2022 to $623.3 per TEU in 2023[51]. - The company operates a fleet of 103 vessels with a total capacity of 162,851 TEUs, including 97 owned vessels and 6 chartered vessels, with an average vessel age of 7.9 years[50]. - Revenue from the Greater China region was $942,529 thousand, significantly lower than $1,980,749 thousand in 2022[29]. Cost Management - The cost of services provided was $1,805,925 thousand, a reduction from $2,133,873 thousand in 2022, with fuel costs decreasing from $453,084 thousand to $316,807 thousand[33]. - Financial costs increased to $18,753 thousand in 2023 from $17,492 thousand in 2022, primarily due to higher bank loan interest[32]. - Employee costs for the period were approximately $209.9 million, down from $240.1 million on December 31, 2022[80]. - Administrative expenses decreased by approximately 17.9% from about $165.7 million in 2022 to about $136.0 million in 2023[65]. Acquisitions and Investments - The company acquired 100% equity of several shipping companies for a total consideration of $39,770,000, which includes $18,681,000 for shares and $21,089,000 for unpaid shareholder loans[46]. - The company completed two acquisitions on September 21, 2023, for a total consideration of approximately $39.77 million and $18.44 million respectively[81]. - A total of 12 new container ships were delivered during the fiscal year ending December 31, 2023[83]. - The company plans to deliver 9 new container ships in 2024[84]. Governance and Compliance - The group has adopted new and revised Hong Kong Financial Reporting Standards, which did not significantly impact the financial statements[19]. - The group’s financial statements include comprehensive income attributable to shareholders and non-controlling interests, ensuring transparency in reporting[17]. - The audit committee consists of three independent non-executive directors, with Dr. 廖家瑩 serving as the chairman[95]. - Ernst & Young has been appointed as the auditor for the fiscal year ending December 31, 2023, with a resolution to reappoint them at the upcoming annual general meeting[96]. - The preliminary announcement of the group's consolidated financial statements has been verified by the auditor, confirming consistency with the financial figures reported[98]. - The annual performance announcement will be published on the Hong Kong Stock Exchange and the company's website, containing all required information[99].

Financial Performance - For the six months ended June 30, 2023, the company's revenue decreased by approximately 44.5% to about $1,253.4 million from approximately $2,257.7 million for the same period in 2022[15]. - Total revenue decreased by approximately 44.5% from about $2,257.7 million in the six months ended June 30, 2022, to about $1,253.4 million in the same period of 2023[18]. - Gross profit decreased from approximately $1,204.4 million in the six months ended June 30, 2022, to about $332.2 million in the same period of 2023, with a gross margin decline from about 53.3% to 26.5%[21]. - Net profit for the six months ended June 30, 2023, was approximately $312.7 million, a decrease of about $857.6 million compared to approximately $1,170.3 million in the same period of 2022[32]. - Basic earnings per share decreased to 11.70 cents from 43.95 cents, reflecting a 73.4% drop[83]. - Total comprehensive income for the period was $291,435 thousand, significantly lower than $1,175,452 thousand in the prior year[83]. - The group reported a pre-tax profit of $310,297,000 for the six months ended June 30, 2023, down from $1,167,351,000 in the same period of 2022[132]. Operational Metrics - Container throughput decreased by approximately 3.8% from 1,611,495 TEUs for the six months ended June 30, 2022, to 1,550,075 TEUs for the same period in 2023[15]. - Average freight rates (excluding slot exchange fees) dropped by approximately 46.1% from $1,239.1 per TEU in the first half of 2022 to $667.5 per TEU in the first half of 2023[15]. - Container shipping volume decreased by approximately 3.8% from 1,611,495 TEUs in the six months ended June 30, 2022, to 1,550,075 TEUs in the same period of 2023[18]. - The logistics and shipping market is facing dual pressures from significant capacity increases and a sharp decline in demand due to economic cycles[15]. - The company operates a fleet of 100 vessels with a total capacity of 159,505 TEUs, including 89 owned vessels (147,413 TEUs) and 11 chartered vessels (12,092 TEUs) as of June 30, 2023[13]. Expenses and Costs - Cost of sales decreased by approximately 12.5% from about $1,053.2 million in the six months ended June 30, 2022, to about $921.2 million in the same period of 2023[19]. - Administrative expenses decreased by approximately 19.2% from about $79.2 million in the six months ended June 30, 2022, to about $64.0 million in the same period of 2023[24]. - Total financial costs rose to $10,511,000 in 2023, compared to $7,780,000 in 2022, marking an increase of 35%[123]. - The cost of marine fuel consumed decreased to $162,742,000 in 2023 from $212,021,000 in 2022, a reduction of 23%[125]. Assets and Liabilities - Total assets decreased by approximately 12.6% from about $3,082.9 million on December 31, 2022, to about $2,693.0 million on June 30, 2023[33]. - Total liabilities decreased by approximately 14.3% from about $917.8 million on December 31, 2022, to about $786.2 million on June 30, 2023[33]. - The company's total equity as of June 30, 2023, was $1,906,743 thousand, down from $2,165,011 thousand at the end of 2022, reflecting a decrease of 11.9%[87]. - Current assets decreased to $752,636 thousand from $1,228,970 thousand at the end of 2022, indicating a reduction of 38.7%[84]. Shareholder Information - An interim dividend of HKD 0.60 per share (equivalent to USD 0.0766) was declared for the six months ended June 30, 2023, compared to HKD 2.40 for the same period last year[42]. - As of June 30, 2023, the major shareholder Yang Shaopeng holds 1,097,794,544 shares, representing 40.92% of the total equity[62]. - Liu Rongli, as a spouse of Yang Shaopeng, holds 1,108,413,544 shares, accounting for 41.32% of the total equity[66]. - The company repurchased shares worth $11,811,000 under the share award plan during the period[89]. Cash Flow - Operating cash flow for the six months ended June 30, 2023, was $364,726 thousand, a decrease of 68.3% compared to $1,150,375 thousand in the same period of 2022[91]. - Net cash flow from operating activities was $368,184 thousand, down from $1,140,752 thousand year-over-year[91]. - Cash flow from investing activities showed a net inflow of $37,679 thousand, a significant improvement from a net outflow of $736,898 thousand in the previous year[91]. - Cash flow from financing activities resulted in a net outflow of $657,159 thousand, compared to a net outflow of $782,346 thousand in the same period last year[93]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the group's unaudited interim results for the six months ending June 30, 2023[74]. - The company has complied with the corporate governance code as per the listing rules during the reporting period[68]. - The company maintained the required public float as per the listing rules during the six months ending June 30, 2023[73].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而 引致的任何損失承擔任何責任。 SITC International Holdings Company Limited 海 豐 國 際 控 股 有 限 公司 （於開曼群島註冊成立的有限公司） （股份代號：1308） 截至二零二三年六月三十日止六個月的 中期業績公告 財務摘要 • 截至二零二三年六月三十日止六個月的收入約為1,253.4百萬美元，較二零二 二年同期約2,257.7百萬美元減少約44.5%。 • 截至二零二三年六月三十日止六個月的毛利由截至二零二二年六月三十日止 六個月的約1,204.4百萬美元減少約72.4%至約332.2百萬美元，從而截至二零二 三年六月三十日止六個月的毛利率由截至二零二二年六月三十日止六個月的 約53.3%減少至約26.5%。 • 截至二零二三年六月三十日止六個月，利潤由二零二二年同期的約1,170.3百 萬美元減少約73.3%至約312.7百萬美元。 ...