Yues International Holdings Group Limited 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，概不就因本公告全部 或任何部分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。 樂 氏 國 際 控 股 集 團 有 限 公 司 樂氏國際控股集團有限公司 主席 樂康 香港，二零二五年八月十八日 （於開曼群島註冊成立的有限公司） （股份代號：1529） 董事會會議通告 樂氏國際控股集團有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈，董 事會會議將於二零二五年八月二十八日（ 星期四 ）舉行，藉以處理（ 其中包括 ）考慮 及批准本公司及其附屬公司截至二零二五年六月三十日止六個月之中期業績及其 刊發，並考慮派付中期股息（ 如有 ）。 承董事會命 於本公告日期，董事會包括四名執行董事樂康先生、李志剛先生、黎嘉浩先生及 劉萍女士；以及三名獨立非執行董事劉偉彪先生、王軼博士及張耀先生。 ...

[Supplementary Information Regarding the 2024 Annual Report](index=1&type=section&id=Supplementary%20Information%20Regarding%20the%202024%20Annual%20Report) This section provides supplementary details on the company's 2024 annual report, primarily focusing on share option scheme changes and participant eligibility [Details of Share Option Scheme](index=1&type=section&id=Details%20of%20Share%20Option%20Scheme) This chapter provides supplementary information on the company's share option scheme for the year ended December 31, 2024, detailing changes in options granted to directors and employees and defining eligible participants for new schemes Details of Share Option Changes for the Year Ended December 31, 2024 | Participant Category | Grant Date | Exercise Price (HKD) | Balance as of January 1, 2024 | Expired During Year | Cancelled During Year | Balance as of December 31, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Directors | June 1, 2020 | 0.188 | 11,200,000 | (2,400,000) | (8,800,000) | — | | Employees | June 1, 2020 | 0.188 | 57,000,000 | — | (57,000,000) | — | - The new share option scheme's eligible participants include directors and employees of the Group and its associated entities, as well as contractors, suppliers, and consultants beneficial to the Group's long-term development[4](index=4&type=chunk) [Change in Use of Proceeds](index=2&type=section&id=Change%20in%20Use%20of%20Proceeds) This section outlines the company's plan to reallocate unused proceeds to support the development of its Traditional Chinese Medicine business [Proceeds Reallocation Plan and Rationale](index=2&type=section&id=Proceeds%20Reallocation%20Plan%20and%20Rationale) The company plans to reallocate approximately **HKD 20 million** of unutilized proceeds to support Traditional Chinese Medicine business development, primarily for supply chain and drug procurement, following the acquisition of Bozhou Lelaohao Pharmaceutical Co., Ltd. in July 2025, with all funds expected to be utilized by December 31, 2026 Proceeds Use Change Plan | Proposed Use | Amount (HKD) | Estimated Completion Date of Utilization | | :--- | :--- | :--- | | Traditional Chinese Medicine Business Development | Approx. 20 Million | December 31, 2026 | | General Working Capital | Remaining Unutilized Net Proceeds | December 31, 2026 | - The primary reason for changing the use of proceeds is to support the business development of the newly acquired **Bozhou Lelaohao Pharmaceutical Co., Ltd.**, which holds a drug operating license and engages in wholesale and retail distribution of pharmaceuticals[7](index=7&type=chunk) - Reallocated funds will primarily be used for supply chain development and drug procurement to support the Group's Traditional Chinese Medicine business, leveraging the acquisition to explore upstream and downstream opportunities in the pharmaceutical value chain[7](index=7&type=chunk)

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 樂氏國際控股集團有限公司（於開曼群島註冊成立之有限公司） 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01529 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.1 HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 1,000,000,000 | HKD | | 0.1 HKD | | 100,000,000 | 本月底法 ...

Group 1 - The company announced the acquisition of 100% equity in Bozhou Le Laohao Pharmaceutical Co., Ltd. for a total consideration of RMB 900,000, which was determined after fair negotiation between the parties [1] - The board anticipates that this acquisition will not have any significant adverse impact on the company's financial condition or operations in the short term [1] - The target company holds a Drug Business License and is primarily engaged in the wholesale and distribution of pharmaceuticals, sales of medical instruments, and wholesale of medical protective supplies, playing a crucial role in public health [1] Group 2 - The company plans to enhance management efficiency and integrate resources based on the existing business of the target company, aiming to become a comprehensive supply chain service provider [2] - The company intends to expand its business beyond basic distribution to provide value-added services such as financial, data, and management solutions for the industry chain [2] - The company aims to leverage digital technology to reduce operational costs and utilize artificial intelligence to improve decision-making accuracy, transforming its logistics capabilities into data, service, and financial strengths [2]

Financial Performance - The Group's total revenue increased by approximately RMB122.3 million, or 91.4%, from approximately RMB133.9 million in 2023 to approximately RMB256.2 million in 2024[18]. - The Group's total revenue increased by approximately RMB 122.3 million or 91.4% year-on-year, reaching approximately RMB 256.2 million for the year ending December 31, 2023[20]. - Revenue from transportation services surged by approximately 245.1%, rising from approximately RMB50.3 million to approximately RMB173.7 million, driven by the acquisition of Haihui Group and the establishment of a new subsidiary in Guangdong Province[49]. - Warehousing service revenue rose by approximately 24.4% from approximately RMB 19.3 million to approximately RMB 24.0 million, mainly due to the inclusion of revenue from Haihui Group[54]. - Revenue from in-plant logistics services decreased by approximately 9.7% from approximately RMB 62.9 million to approximately RMB 56.8 million[55]. - The Group's loss for the year slightly decreased from approximately RMB 34.2 million in the previous year to approximately RMB 30.1 million[21]. - The Group recorded a loss of approximately RMB 30.1 million for the year, an improvement from a loss of approximately RMB 34.2 million in the previous year[82]. Operational Developments - The Group plans to establish a traditional Chinese medicine logistics industry park in Fuzhou City, Jiangxi Province, following the acquisition of land use rights in October 2024[16]. - The Group aims to develop end-to-end pharmaceutical supply chain logistics solutions by exploring specialized warehousing and distribution networks in the Traditional Chinese Medicine sector[23]. - The project for TCM logistics services is expected to be completed by the end of 2026, leveraging the chairman's extensive experience in the TCM business[42]. - The Group plans to commence goat milk product operations in Inner Mongolia, with sales of goat milk powder expected to start in the first half of 2025[43]. - As of the end of 2024, the Group operated four warehouses in Guangdong Province, with a total gross floor area of approximately 40,000 square meters[17]. - The Group's strategic move to diversify its business is expected to support long-term growth and enhance profitability for shareholders[16]. Market Trends - The logistics industry in Mainland China is experiencing steady growth driven by the expansion of the e-commerce market and government-driven smart logistics policies[13]. - The logistics and warehousing sector is being reshaped by rapid digitalization and increasing demand for cross-border e-commerce logistics[12]. - The overall logistics industry in China is undergoing transformation, with a focus on operational efficiency and digital capability development[41]. - The Group anticipates that demand for high-standard and smart warehousing solutions will drive new growth, while traditional warehousing services may face pressure[41]. - The logistics and warehousing industry in Mainland China is expected to face systemic challenges, including cost control pressures and rising global trade protectionism[22]. Financial Management - The Group has implemented stringent cost control measures and phased reductions in marketing budgets to maintain financial discipline[13]. - The Group maintained financial discipline, reducing marketing and administrative expenses from 23.7% of revenue to 14.2% year-on-year[36]. - Outsourcing expenses significantly increased, accounting for 61.3% of total revenue in 2024, up from 25.2% in 2023[36]. - Subcontracting expenses surged by approximately 365.6% year-on-year, rising from approximately RMB 33.7 million to approximately RMB 157.0 million[21]. - Employee benefit expenses increased by 7.8% year-on-year, from approximately RMB 66.7 million to approximately RMB 71.9 million[21]. - The Group's cash and cash equivalents were approximately RMB 49.7 million as of December 31, 2024, compared to approximately RMB 78.0 million in 2023[78]. - The gearing ratio improved to approximately 4.9% as of December 31, 2024, from approximately 9.2% in 2023[79]. Leadership and Governance - The company has a strong leadership team with diverse backgrounds in finance, management, and investment, enhancing its strategic decision-making capabilities[120][125][126][128][132]. - The Company aims to maintain high standards of corporate governance to safeguard shareholder interests[142]. - The Board comprises five executive Directors and four independent non-executive Directors as of December 31, 2024[153]. - The Company has complied with all applicable Code Provisions during the year ended December 31, 2024[143]. - The Company has adopted a Board Diversity Policy to enhance performance and achieve sustainable development[161]. - The Company aims to achieve a Board and workforce without single gender and recognizes the need for improved gender diversity at the Board level[170]. Shareholder Engagement - The Company completed a placing of 192,880,000 shares at a price of HK$0.097 per share, raising approximately HK$18.52 million net proceeds[98]. - The net proceeds from the 2023 Placing were approximately HK$34.2 million from the placement of 176,880,000 shares at HK$0.196 per share[108]. - The company aims to strengthen its financial position and support the development of its logistics services business through these placements[103]. - The company plans to utilize the unutilized proceeds in a manner consistent with the planned applications[116].

Group 1 - The Hang Seng Index fell by 1.91% to close at 21,056.98 points on April 16 [1] - Le Shi International Holdings (01529.HK) closed at HKD 0.182 per share, up 7.06%, with a trading volume of 776,000 shares and a turnover of HKD 132,400, showing a volatility of 31.76% [1] - Over the past month, Le Shi International Holdings has seen a cumulative increase of 27.36%, while it has a year-to-date decline of 13.83%, underperforming the Hang Seng Index by 7.01% [1] Group 2 - For the fiscal year ending December 31, 2024, Le Shi International Holdings reported total revenue of HKD 256 million, representing a year-on-year growth of 91.37% [1] - The company recorded a net profit attributable to shareholders of -HKD 24.71 million, with a year-on-year increase of 28.23% [1] - The asset-liability ratio stands at 48.05% [1] Group 3 - Currently, there are no institutional investment ratings for Le Shi International Holdings [1] - The average price-to-earnings (P/E) ratio for the industrial transportation sector (TTM) is 7.73 times, with a median of 6.56 times [1] - Le Shi International Holdings has a P/E ratio of -4.25 times, ranking 63rd in the industry [1] Group 4 - Le Shi International Holdings Group Limited adheres to a principle of prudent management, focusing on enhancing internal management and integrating social resources [2] - The company aims to improve service capabilities through integrated logistics functions and optimized logistics networks, gradually evolving into a full-service international supply chain logistics provider and a leading regional logistics partner [2]

Financial Performance - The group recorded revenue of approximately RMB 256.2 million for the year, an increase of about RMB 122.3 million or approximately 91.4% compared to RMB 133.9 million in the previous year[3]. - The loss for the year was approximately RMB 30.1 million, a decrease from RMB 34.2 million in the previous year, primarily due to increased revenue from transportation, warehousing, and in-plant logistics services[3]. - Basic loss per share for the year was approximately RMB 19.44, compared to RMB 32.77 in the previous year[3]. - Total comprehensive income for the year was RMB (29,720,000), a decrease from RMB (37,265,000) in the previous year, reflecting a reduction in losses by about 20.3%[6]. - The company reported a net loss of RMB 30,056,000 in 2024, compared to a net loss of RMB 34,163,000 in 2023, indicating an improvement of approximately 8.2% year-over-year[6]. Revenue Breakdown - Revenue from external customer contracts for 2024 is projected to be RMB 256,214 thousand, compared to RMB 133,881 thousand in 2023, representing a growth of 91.5%[23]. - The logistics services segment generated revenue of RMB 173,683 thousand in 2024, up from RMB 50,335 thousand in 2023, indicating a significant increase of 245.5%[23]. - The warehousing services segment reported revenue of RMB 23,976 thousand in 2024, compared to RMB 19,276 thousand in 2023, reflecting a growth of 24.0%[23]. - The in-plant logistics services segment saw a decrease in revenue to RMB 56,836 thousand in 2024 from RMB 62,932 thousand in 2023, a decline of 9.0%[23]. Assets and Liabilities - The company's total assets decreased to RMB 256,827,000 in 2024 from RMB 282,828,000 in 2023, representing a decline of approximately 9.2%[7]. - The company's total liabilities decreased from RMB 139,372,000 in 2023 to RMB 123,409,000 in 2024, a reduction of approximately 11.5%[7]. - The company's equity attributable to owners decreased from RMB 138,456,000 in 2023 to RMB 129,943,000 in 2024, a decline of about 6.2%[7]. - The company's cash and cash equivalents decreased significantly from RMB 78,026,000 in 2023 to RMB 49,723,000 in 2024, a drop of about 36.3%[7]. Operational Efficiency - The group maintained strict cost control, reducing the proportion of marketing and administrative expenses from 23.7% to 14.2% of revenue[67]. - The company reported a significant increase in the value of non-current assets, rising from RMB 80,004,000 in 2023 to RMB 85,722,000 in 2024, an increase of approximately 7.2%[7]. - The company’s operational efficiency is expected to improve following the termination of the Haihui acquisition, reducing market risks[59]. Shareholder Returns and Dividends - The board of directors does not recommend the payment of a final dividend for the year, consistent with the previous year[3]. - The company does not recommend the payment of any dividends for the fiscal years ending December 31, 2024, and 2023[49]. Acquisitions and Investments - The company sold 100% equity of its subsidiary, Jian Sheng Logistics (Overseas) Investment Co., Ltd., for a cash consideration of RMB 3,500,000 on August 26, 2024[40]. - On July 30, 2024, the company acquired approximately 51.22% equity in Keshiketeng Banner Meixuan Logistics Co., Ltd. for RMB 3,920,000, aiming to expand its business[42]. - The acquisition of Keshiketeng Banner Meixuan is expected to enhance shareholder returns and business growth[43]. Market and Industry Trends - The logistics industry in China continues to play a significant role in supporting economic growth, despite facing pressures from rising costs and intensified competition[66]. - The logistics sector is expected to continue its transformation and upgrading trend in 2025, with structural differentiation in growth momentum anticipated[70]. Corporate Governance - The company maintains a high level of corporate governance to ensure transparency and protect shareholder interests[109]. - There are no known conflicts of interest among the company's directors or major shareholders as of December 31, 2024[110].

[Corporate Information](index=3&type=section&id=Corporate%20Information) The report details key management personnel, including directors and committee members, along with core company information like registered office and principal bankers - The report provides a list of key management personnel, including executive directors, independent non-executive directors, and members of various committees (Audit, Remuneration, Nomination), along with core company information such as its registered office, headquarters, principal place of business in Hong Kong, and principal bankers[4](index=4&type=chunk)[6](index=6&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the group's condensed consolidated financial statements, including profit or loss, comprehensive income, financial position, equity changes, and cash flows [Condensed Consolidated Statement of Profit or Loss](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2024, group revenue grew **55.3%** to **RMB 94.70 million**, but increased subcontracting and operating expenses led to a **25.2%** wider loss of **RMB 13.22 million**, with basic loss per share at **RMB 0.8772 cents** Summary of Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2024 (RMB thousand) | 2023 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Revenue** | **94,701** | **60,977** | **+55.3%** | | Other income and gains, net | 3,895 | 4,794 | -18.8% | | Employee benefit expenses | (36,793) | (31,811) | +15.7% | | Subcontracting expenses | (48,070) | (13,111) | +266.6% | | Other expenses | (21,498) | (28,381) | -24.3% | | **Loss before taxation** | **(13,463)** | **(10,287)** | **+30.9%** | | **Loss for the period** | **(13,224)** | **(10,562)** | **+25.2%** | | Loss attributable to owners of the Company | (10,588) | (10,562) | +0.2% | | **Loss per share - Basic** | **(0.8772 RMB cents)** | **(1.0952 RMB cents)** | **-** | [Condensed Consolidated Statement of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) After accounting for **RMB 1.604 million** in foreign currency translation losses from overseas operations, the group's total comprehensive expense for the six months ended June 30, 2024, expanded **40.4%** to **RMB 14.828 million** Summary of Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2024 (RMB thousand) | 2023 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Loss for the period** | **(13,224)** | **(10,562)** | **+25.2%** | | Other comprehensive (expense)/income | (1,604) | 4 | - | | **Total comprehensive expense** | **(14,828)** | **(10,558)** | **+40.4%** | [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets slightly increased to **RMB 286 million**, with total equity rising to **RMB 145 million** primarily due to share placement, and net current assets improving from **RMB 100 million** to **RMB 110 million** Summary of Statement of Financial Position | Indicator | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | **Total non-current assets** | 72,253 | 80,004 | -9.7% | | **Total current assets** | 213,625 | 202,824 | +5.3% | | **Total assets** | **285,878** | **282,828** | **+1.1%** | | **Total equity** | **145,454** | **143,808** | **+1.1%** | | Total non-current liabilities | 36,581 | 39,020 | -6.3% | | Total current liabilities | 103,843 | 100,000 | +3.8% | | **Total liabilities** | **140,424** | **139,020** | **+1.0%** | [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2024, total equity slightly increased from **RMB 144 million** to **RMB 145 million**, primarily influenced by a **RMB 13.224 million** loss for the period offset by a **RMB 16.474 million** increase from new share placements - During the period, the company issued new shares through a share placement, raising **RMB 16.474 million**, which effectively offset the negative impact of operating losses on shareholders' equity[21](index=21&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2024, the group reported a net cash outflow of **RMB 25.694 million** from operating activities, a net inflow of **RMB 25.450 million** from investing activities, and **RMB 6.447 million** from financing activities, increasing period-end cash and cash equivalents to **RMB 82.796 million** Summary of Cash Flow Statement (For the six months ended June 30) | Indicator | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (25,694) | (6,623) | | Net cash generated from investing activities | 25,450 | 8,738 | | Net cash generated from/(used in) financing activities | 6,447 | (1,972) | | **Net increase in cash and cash equivalents** | **6,203** | **143** | | Cash and cash equivalents at beginning of period | 78,026 | 55,530 | | **Cash and cash equivalents at end of period** | **82,796** | **55,392** | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, elaborating on revenue, segment information, share capital, and post-reporting period events [3. REVENUE](index=13&type=section&id=3.%20REVENUE) The group's total revenue is segmented by service type, with transportation services being the largest contributor, growing **150.5%** to **RMB 48.746 million**, while warehousing services also saw significant growth and in-plant logistics services declined Revenue by Service Type (For the six months ended June 30) | Service Type | 2024 (RMB thousand) | 2023 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Transportation services | 48,746 | 19,458 | +150.5% | | Warehousing services | 17,509 | 9,812 | +78.4% | | In-plant logistics services | 27,617 | 31,043 | -11.0% | | Customized services | 829 | 664 | +24.9% | | **Total** | **94,701** | **60,977** | **+55.3%** | [4. SEGMENT INFORMATION](index=16&type=section&id=4.%20SEGMENT%20INFORMATION) By business segment, transportation and in-plant logistics services were primary profit contributors with segment results of **RMB 3.305 million** and **RMB 3.249 million** respectively, while warehousing services incurred a slight loss, and approximately **96%** of the group's revenue originated from China Segment Results for H1 2024 | Segment | Revenue (RMB thousand) | Segment result (RMB thousand) | | :--- | :--- | :--- | | Transportation services | 48,746 | 3,305 | | Warehousing services | 17,509 | (55) | | In-plant logistics services | 27,617 | 3,249 | | Customized services | 829 | 182 | | **Total** | **94,701** | **6,681** | - The group's business is highly concentrated in China, with approximately **96%** of external customer revenue for the six months ended June 30, 2024, originating from China (95% for the same period in 2023)[58](index=58&type=chunk) [12. SHARE CAPITAL](index=27&type=section&id=12.%20SHARE%20CAPITAL) As of June 30, 2024, the company's issued and fully paid share capital increased to **HKD 13,341,600**, representing **1,334,160,000** ordinary shares, primarily due to the issuance of **192,880,000** new shares through a share placement during the period - During the reporting period, the company issued **192,880,000** new shares through a share placement, increasing the total number of issued shares from **1,141,280,000** at the beginning of 2024 to **1,334,160,000** at period-end[80](index=80&type=chunk) [14. EVENTS AFTER THE REPORTING PERIOD](index=28&type=section&id=14.%20EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) On August 8, 2024, the group entered a conditional sale and purchase agreement to dispose of its entire equity interest in Gainsun Logistics (Overseas) Investment Limited and its subsidiaries for a total consideration of **RMB 3.5 million**, with the disposal yet to be completed as of the report approval date - Subsequent to the reporting period, on August 8, 2024, the group agreed to dispose of its entire equity interest in Gainsun Logistics (Overseas) Investment Limited and its subsidiaries for **RMB 3.5 million**[83](index=83&type=chunk) [Management Discussion and Analysis](index=29&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's business performance, financial results, and future outlook, including strategic initiatives and capital allocation plans [BUSINESS REVIEW AND OUTLOOK](index=29&type=section&id=BUSINESS%20REVIEW%20AND%20OUTLOOK) In H1 2024, despite steady recovery in China's logistics demand, the company faced challenges from slowing economic growth, rising costs, and intense competition, but anticipates continued demand growth and plans to pursue sustainable growth through smart automation, Haihui Group integration, and traditional Chinese medicine business expansion - In H1 2024, China's national logistics volume grew **5.8%** year-on-year, providing industry growth opportunities, yet slowing economic growth and rising costs also pressured the company[87](index=87&type=chunk)[89](index=89&type=chunk) - The company's acquisition of a **60%** equity interest in Haihui Group in October 2023 is expected to significantly contribute to 2024 turnover and optimize resource allocation[95](index=95&type=chunk) - Future strategies include developing smart and automated warehousing, optimizing inventory management, and actively seeking new opportunities, such as participating in the storage and distribution of traditional Chinese medicine products[91](index=91&type=chunk)[96](index=96&type=chunk) [FINANCIAL REVIEW](index=33&type=section&id=FINANCIAL%20REVIEW) In H1 2024, group revenue grew **55.3%** to **RMB 94.7 million**, driven by Haihui Group acquisition, but subcontracting expenses surged **266.6%** to **RMB 48.1 million**, alongside increased staff costs and finance costs, expanding net loss to **RMB 13.2 million**, though liquidity remained robust with gearing ratio significantly down from **9.2%** to **1.6%** Revenue Performance by Business Segment (For the six months ended June 30) | Service Type | 2024 Revenue (RMB million) | 2023 Revenue (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Transportation services | 48.7 | 19.5 | +150.5% | | Warehousing services | 17.5 | 9.8 | +78.4% | | In-plant logistics services | 27.6 | 31.0 | -11.0% | - Subcontracting expenses significantly increased from **RMB 13.1 million** in the prior period to **RMB 48.1 million**, primarily due to increased revenue, particularly from local transportation and international freight forwarding service orders[107](index=107&type=chunk) - Finance costs increased from **RMB 0.2 million** to **RMB 2.1 million**, mainly due to interest on bank loans from the Haihui Group acquisition in H2 2023[110](index=110&type=chunk) Key Financial Ratios | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Net current assets** | RMB 109.8 million | RMB 100.0 million | | **Cash and cash equivalents** | RMB 82.8 million | RMB 78.0 million | | **Gearing Ratio** | **1.6%** | **9.2%** | [USE OF PROCEEDS](index=40&type=section&id=USE%20OF%20PROCEEDS) The company disclosed the use of proceeds from three share placements in 2022, 2023, and 2024, with all funds unutilized as of June 30, 2024, but designated for developing traditional Chinese medicine business, smart logistics services, and investing in logistics infrastructure Net Proceeds from Placements and Usage Plan | Placement Year | Net Proceeds (HKD million) | Planned Use | Expected Full Utilization Time | | :--- | :--- | :--- | :--- | | 2022 | 14.0 | Development of traditional Chinese medicine business and/or general working capital | On or before December 31, 2025 | | 2023 | 34.2 | Development of smart logistics services business | For the year ending December 31, 2024 | | 2024 | 18.5 | Investment in logistics business infrastructure | For the year ending December 31, 2024 | [Corporate Governance and other Information](index=44&type=section&id=Corporate%20Governance%20and%20other%20Information) This section covers the company's corporate governance practices, share option scheme details, and interests of directors and substantial shareholders [SHARE OPTION SCHEME](index=44&type=section&id=SHARE%20OPTION%20SCHEME) The company adopted a new share option scheme in November 2023, with **69,000,000** unexercised options outstanding as of June 30, 2024, at an exercise price of **HKD 0.188** per share, valid until May 31, 2030, and no new options were granted, exercised, lapsed, or cancelled during the period - As of June 30, 2024, the company had **69,000,000** unexercised share options, representing approximately **5.7%** of the weighted average number of shares in issue during the period[146](index=146&type=chunk) [DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTERESTS](index=47&type=section&id=DIRECTORS'%20AND%20SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS) The report discloses directors' and substantial shareholders' interests in the company's shares, with Mr. Zhu Zhijian holding **12.49%** through Portree Wealth Limited as a key substantial shareholder, and other major shareholders holding between **6.00%** and **6.60%** as of June 30, 2024 Substantial Shareholders' Shareholdings (As of June 30, 2024) | Shareholder Name | Number of Shares Held | Shareholding Percentage | | :--- | :--- | :--- | | Mr. Zhu Zhijian (through Portree Wealth) | 166,700,000 | 12.49% | | Zai Tingji | 88,000,000 | 6.60% | | Xie Zhimin | 82,000,000 | 6.15% | | Zhongbei Investment Holding Group (Hainan) Co., Ltd. | 80,000,000 | 6.00% | [Corporate Governance Practices](index=51&type=section&id=Corporate%20Governance%20Practices) The company maintains high corporate governance standards, complying with Listing Rules' Corporate Governance Code, with the Audit Committee reviewing interim financial statements for compliance and adequate disclosure, and Ms. Liu Ping appointed as Executive Director on April 15, 2024 - The company confirmed compliance with all code provisions of the Corporate Governance Code for the six months ended June 30, 2024[164](index=164&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the period[167](index=167&type=chunk) - Ms. Liu Ping was appointed as an Executive Director of the company on April 15, 2024[168](index=168&type=chunk)

Financial Performance - The unaudited consolidated results for the six months ended June 30, 2024, were announced, including comparative figures for the same period in 2023[6]. - The company reported significant financial metrics, but specific figures were not detailed in the provided content[7]. - Revenue for the six months ended June 30, 2024, was RMB 94,701, an increase of 55.5% compared to RMB 60,977 for the same period in 2023[8]. - Loss for the period was RMB 13,224, compared to a loss of RMB 10,562 in the prior year, representing a 25.7% increase in losses[9]. - Total comprehensive expense for the period was RMB 14,828, up from RMB 10,558 in the previous year, indicating a 40.5% increase[9]. - The company reported a basic and diluted loss per share of RMB 0.8772 for the six months ended June 30, 2024, compared to RMB 1.0952 in the same period of 2023[8]. - The Group reported a loss before taxation of RMB 13,463,000 for the six months ended June 30, 2024, compared to a loss of RMB 10,287,000 in the same period of 2023[44]. - The loss attributable to the owners of the Company for the period was RMB 10,588,000 for the six months ended June 30, 2024, compared to RMB 10,562,000 in 2023[56]. - The net loss for the first six months of 2024 was approximately RMB 13.2 million, compared to a net loss of approximately RMB 10.6 million in the first half of 2023[76]. Assets and Liabilities - Non-current assets decreased to RMB 72,253 as of June 30, 2024, from RMB 80,004 at the end of 2023, reflecting a decline of 9.1%[10]. - Total assets increased to RMB 285,878 as of June 30, 2024, compared to RMB 282,828 at the end of 2023, showing a growth of 1.1%[11]. - Total equity rose to RMB 145,454 as of June 30, 2024, compared to RMB 143,808 at the end of 2023, marking an increase of 1.1%[11]. - Current liabilities increased to RMB 103,843 as of June 30, 2024, from RMB 102,850 at the end of 2023, a rise of 1.0%[11]. - Trade receivables from contracts with customers increased to RMB 48,408,000 as of June 30, 2024, up from RMB 39,913,000 as of December 31, 2023, representing a growth of approximately 21%[59]. - Trade payables increased to RMB 23,495,000 as of June 30, 2024, compared to RMB 19,659,000 as of December 31, 2023, reflecting an increase of approximately 19%[68]. - The Group's outstanding borrowings were RMB 47.8 million as of June 30, 2024, down from RMB 52.6 million at December 31, 2023[99]. - The gearing ratio improved to approximately 1.6% as of June 30, 2024, compared to 9.2% at December 31, 2023[104]. Revenue Breakdown - Total revenue for the six months ended June 30, 2024, was RMB 94,701,000, representing a 55.4% increase from RMB 60,977,000 for the same period in 2023[35]. - Revenue from transportation services was RMB 48,746,000, up 150.1% from RMB 19,458,000 in the prior year[44]. - Warehousing services generated revenue of RMB 17,509,000, an increase of 78.7% compared to RMB 9,812,000 in the previous year[44]. - In-plant logistics services revenue decreased to RMB 27,617,000, down 10.0% from RMB 31,043,000 in the same period last year[44]. - Customisation services contributed RMB 829,000, a rise from RMB 664,000, marking a 24.8% increase[44]. Cash Flow - For the six months ended June 30, 2024, net cash used in operating activities was RMB (25,694,000), compared to RMB (6,623,000) for the same period in 2023, indicating a significant increase in cash outflow[26]. - Net cash generated from investing activities was RMB 25,450,000 for the six months ended June 30, 2024, compared to RMB 8,738,000 in the previous year, showing a substantial increase[26]. - The net increase in cash and cash equivalents for the period was RMB 6,203,000, a notable rise from RMB 143,000 in the same period last year[26]. - Cash and cash equivalents at the end of the period amounted to RMB 82,796,000, up from RMB 55,392,000 as of June 30, 2023[26]. Corporate Governance and Structure - The board of directors includes six executive directors and four independent non-executive directors, indicating a diverse leadership structure[3]. - The company is listed on the Stock Exchange of Hong Kong with the stock code 1529, providing access to capital markets[4]. - The interim report will be made available to shareholders and can be accessed on the company's website[2]. - The management discussion and analysis section will provide insights into the company's performance and strategic direction[2]. - The Group's headquarters is located in Guangzhou, China, with a registered office in the Cayman Islands[27]. - The Audit Committee has reviewed the unaudited consolidated financial statements for the six months ended June 30, 2024, and confirmed compliance with applicable accounting standards[151]. Market and Industry Insights - The total logistics volume in China reached RMB 167.4 trillion, representing a year-on-year increase of 5.8%[74]. - The GDP of the PRC grew by 5% year-on-year in the first half of 2024, indicating a slowdown compared to the previous year[76]. - The logistics demand in the PRC is expected to continue its growth trajectory, driven by the manufacturing and e-commerce industries[77]. - The warehousing industry is anticipated to evolve towards intelligence and automation, enhancing efficiency and reducing operational costs[77]. - The logistics industry faces challenges such as rising energy prices and increased labor costs, impacting operational expenses[76]. Share Capital and Options - The total share capital increased to RMB 13,341,600,000 as of June 30, 2024, from RMB 11,412,800,000 as of December 31, 2023, indicating a growth of about 17%[70]. - The company issued a total of 192,880,000 ordinary shares at a price of HK$0.097 per share, representing a discount of approximately 11.82% to the closing price of HK$0.11 on April 19, 2024[131]. - The total number of share options granted to employees and directors as of June 30, 2024, is 69,000,000[140]. - The exercise price of the share options is HK$0.188 per share, with a validity period of ten years from the date of grant[138]. - The new share option scheme was adopted on November 23, 2023, and became effective upon listing approval on November 29, 2023[135]. Employee and Operational Insights - As of June 30, 2024, the Group employed 639 full-time employees, a slight decrease from 641 employees as of June 30, 2023[114]. - Employee benefits expenses rose from approximately RMB 31.8 million for the six months ended June 30, 2023, to approximately RMB 36.8 million for the same period in 2024, primarily due to increased average salary levels[88]. - The Group aims to optimize inventory management and enhance warehouse utilization to mitigate operational costs and maintain profitability[81].

Financial Performance - The Group's overall revenue decreased by approximately RMB 45.6 million or approximately 25.4%, from approximately RMB 179.5 million in 2022 to approximately RMB 133.9 million in 2023[17]. - The Group's loss for the year significantly increased to approximately RMB 34.2 million, compared to approximately RMB 0.2 million in the previous year[18]. - Revenue from transportation services decreased by approximately 31.2%, from approximately RMB 73.1 million to approximately RMB 50.3 million, mainly due to a decrease in orders for local transportation services and international freight forwarding[48]. - Revenue from warehousing services decreased by approximately 44.1%, from approximately RMB 34.5 million to approximately RMB 19.3 million, primarily due to reduced demand for warehousing services as customers aimed to minimize storage costs[49]. - Revenue from in-plant logistics services decreased by approximately 9.0%, from approximately RMB 69.1 million to approximately RMB 62.9 million[55]. - Revenue from customization services decreased from approximately RMB 2.8 million to approximately RMB 1.3 million[56]. - The Group's overall operations gradually recovered post-COVID-19 but have not yet returned to pre-pandemic levels, with ongoing efforts to identify investment opportunities[80]. Operational Developments - The Group acquired a 60% equity interest in Zhongshan Haihui Technology Logistics (Group) Company Limited in the second half of 2023, aiming to enhance its logistics service offerings[15]. - The Group operates three warehouses in Guangdong Province with a total gross floor area of approximately 40,000 square meters[16]. - The Group aims to integrate freight forwarding services, e-commerce logistics, warehousing, and packaging services to create a positive synergy effect[15]. - The Group is actively exploring new customer segments to broaden its clientele foundation amid declining demand for logistics services[16]. - The Group aims to diversify logistics services to a broader spectrum of industries, including smart logistics utilizing AI, robotics, and drones[23]. - The Group plans to continue providing high-quality warehousing services while adapting to potential changes in customer demand for logistics services[22]. Cost Management - Lease payments related to short-term leases increased by approximately 23.9%, from approximately RMB 28.5 million in 2022 to approximately RMB 35.3 million in 2023[18]. - The Group recognized an impairment of right-of-use assets amounting to approximately RMB 2.8 million during the year[18]. - The Group has adopted a cautious approach in managing operating expenses and reducing marketing budgets in response to market uncertainties[12]. - The Group's subcontracting expenses as a percentage of total revenue decreased from approximately 32.1% in 2022 to approximately 25.2% in 2023[35]. - Sub-contracting expenses decreased by approximately RMB 24.0 million from approximately RMB 57.7 million to approximately RMB 33.7 million, mainly due to a corresponding decrease in revenue[64]. Future Outlook - The logistics and warehousing industry in Mainland China is facing unprecedented challenges due to rising costs and intensified market competition[11]. - The Group anticipates a cautious and optimistic outlook for 2024, with a focus on market research and technological innovation to adapt to potential market fluctuations[40]. - The Group plans to explore strategic partnerships and opportunities in the Chinese Medicine industry to achieve sustainable business growth[41]. Financial Position - As of December 31, 2023, total outstanding loan principal amounts were approximately RMB 46.2 million, down from approximately RMB 57.2 million in 2022, with interest rates ranging from approximately 6% to 12% per annum[74]. - As of December 31, 2023, the Group had net current assets of approximately RMB 100.0 million, an increase from RMB 87.4 million in 2022[82]. - The Group's cash and cash equivalents were approximately RMB 78.0 million as of December 31, 2023, compared to RMB 55.5 million in 2022[82]. - The gearing ratio of the Group was approximately 9.2% as of December 31, 2023, indicating a manageable level of debt[85]. Corporate Governance - The Company has complied with all applicable Code Provisions as set out in the Corporate Governance Code during the year ended December 31, 2023[147]. - The Board comprises five executive Directors and four independent non-executive Directors, with independent Directors representing more than one-third of the Board[158]. - The Company aims to maintain high standards of corporate governance to safeguard the interests of shareholders[146]. - The Board's main functions include approving financial statements and monitoring the performance of management[157]. - The Company plans to appoint at least one female Director by December 31, 2024, to promote gender diversity at the Board level[169]. Management and Board Composition - The executive team includes Mr. Le Kang, who has over 11 years of experience in marketing and company management, and Mr. Li Jiahao, the CEO, who has been with the company since 2012[114][116]. - The company has a diverse board with members holding advanced degrees in economics, accounting, and management, enhancing its governance and strategic decision-making capabilities[132]. - The independent non-executive Directors collectively bring extensive experience in finance, accounting, and management, which is crucial for the company's oversight and strategic direction[138]. - The company emphasizes the importance of professional qualifications among its directors and senior management, ensuring compliance and effective governance[126]. - The Company has confirmed compliance with the corporate governance code regarding Directors' training and development[176].