[Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) This report outlines the condensed consolidated results of China Merchants Group Limited for the six months ended June 30, 2025, showing slight revenue growth but a decrease in profit attributable to owners due to a prior period's one-off gain - **2025 First Half Key Financial Indicators Comparison** | Indicator | 2025 First Half (Thousand HKD) | 2024 First Half (Thousand HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 157,939 | 157,177 | +0.5% | | Gross Profit | 38,406 | 37,420 | +2.6% | | Gross Profit Margin | 24.3% | 23.8% | +0.5pp | | Profit for the Period | 3,514 | 3,393 | +3.6% | | Profit Attributable to Owners of the Company | 2,473 | 3,468 | -28.7% | | Earnings Per Share (HK cents) | 0.14 | 0.2 | -30.0% | - The Board does not recommend an interim dividend for the current period, consistent with the prior period[5](index=5&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, group revenue slightly increased, but operating profit decreased due to lower net other income and increased fair value losses on investment properties, leading to a 28.7% decline in profit attributable to owners of the Company - **Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Excerpt)** | Indicator | 2025 First Half (Thousand HKD) | 2024 First Half (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 157,939 | 157,177 | | Cost of services provided and goods sold | (119,533) | (119,757) | | Gross Profit | 38,406 | 37,420 | | Other income, net | 3,010 | 8,128 | | Fair value changes of investment properties | (1,615) | (1,298) | | Operating Profit | 10,434 | 11,882 | | Finance costs | (3,923) | (6,393) | | Profit before tax | 6,511 | 5,489 | | Income tax expense | (2,997) | (2,096) | | Profit for the Period | 3,514 | 3,393 | | Profit Attributable to Owners of the Company | 2,473 | 3,468 | | Basic Earnings Per Share (HK cents) | 0.14 | 0.2 | - Total comprehensive income for the period significantly improved from a **loss of HKD 13.299 million** in the first half of 2024 to a **gain of HKD 27.421 million** in the first half of 2025, primarily due to exchange differences on translation of overseas operations' financial statements[6](index=6&type=chunk)[7](index=7&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets slightly increased, with stable non-current assets and significant increases in current assets like inventories and receivables, while current liabilities also rose, leading to continued net current liabilities but an increase in net assets - **Condensed Consolidated Statement of Financial Position (Excerpt)** | Indicator | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Investment Properties | 819,734 | 798,251 | | Property, Plant and Equipment | 314,235 | 317,701 | | **Current Assets** | | | | Inventories | 16,174 | 5,802 | | Trade and Other Receivables | 96,702 | 80,095 | | Cash and Cash Equivalents | 37,190 | 58,662 | | **Current Liabilities** | | | | Trade and Other Payables | 120,313 | 111,750 | | Bank Borrowings (current portion) | 146,016 | 141,979 | | Net Current Liabilities | (138,467) | (131,644) | | Net Assets | 841,710 | 814,289 | | Total Equity | 841,710 | 814,289 | - As of June 30, 2025, the Group's **net current liabilities increased to approximately HKD 138 million** from HKD 131 million at the end of 2024, indicating persistent liquidity pressure[9](index=9&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section details the basis of preparation, accounting policies, significant estimates, segment information, and changes in balance sheet items, including the 2024 disposal of a subsidiary [1. Company Information](index=6&type=section&id=1.%20Company%20Information) China Merchants Group Limited is an investment holding company registered in the Cayman Islands, primarily engaged in port investment, development, operation, and management, with its ultimate control resting with the Hubei Provincial People's Government State-owned Assets Supervision and Administration Commission - The Company is an investment holding company, with its subsidiaries primarily engaged in port investment, development, operation, and management, as well as providing port-related logistics and supply chain management services[10](index=10&type=chunk) - The ultimate controlling party of the Company is the **Hubei Provincial People's Government State-owned Assets Supervision and Administration Commission**[10](index=10&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) The interim financial information is prepared in accordance with IAS 34 and HKEX Listing Rules, consistent with 2024 annual financial statements, and despite net current liabilities, the Board believes the Group can continue as a going concern due to expected cash flows and holding company support - The interim financial information is prepared in accordance with **International Accounting Standard 34** and the **HKEX Listing Rules**, consistent with the accounting policies used in the 2024 annual financial statements[13](index=13&type=chunk) - As of June 30, 2025, the Group had **net current liabilities of approximately HKD 138 million**, but the Board assesses the Group's ability to continue as a going concern based on expected sufficient cash flows and financial support from its holding company, Hubei Port Group[14](index=14&type=chunk)[18](index=18&type=chunk) - The revised International Financial Reporting Standards adopted during the period had **no significant impact** on the preparation and presentation of the Group's results and financial position[16](index=16&type=chunk) [3. Significant Accounting Estimates and Judgements](index=8&type=section&id=3.%20Significant%20Accounting%20Estimates%20and%20Judgements) The significant judgements, estimates, and assumptions made by management in preparing the interim financial information are consistent with those applied in the annual financial statements for the year ended December 31, 2024 - The significant judgements and sources of estimation uncertainty made by management in preparing the interim financial information are **consistent** with those applied in the annual financial statements for the year ended December 31, 2024[19](index=19&type=chunk) [4. Segment Information](index=8&type=section&id=4.%20Segment%20Information) The Group operates four reportable segments: Property Business, Terminal and Related Businesses, Integrated Logistics Services, and Supply Chain Management and Trading Business, with all revenue and non-current assets primarily located in China - The Group's four reportable segments are: **Property Business**, **Terminal and Related Businesses**, **Integrated Logistics Services**, and **Supply Chain Management and Trading Business**[20](index=20&type=chunk)[24](index=24&type=chunk) - For the six months ended June 30, 2025 and 2024, all of the Group's revenue was derived from external customers located in China, and non-current assets are also primarily located in China[22](index=22&type=chunk) - **Segment Revenue and Results (2025 First Half)** | Segment | External Customer Revenue (Thousand HKD) | Segment Results (Thousand HKD) | | :--- | :--- | :--- | | Property Business | 6,774 | 1,040 | | Terminal and Related Businesses | 76,275 | 14,130 | | Integrated Logistics Services | 40,492 | 1,736 | | Supply Chain Management and Trading Business | 34,398 | (2,136) | | **Total** | **157,939** | **14,770** | [5. Other Income, Net](index=11&type=section&id=5.%20Other%20Income,%20Net) Net other income for the period significantly decreased to HKD 3.01 million from HKD 8.128 million in the prior period, primarily due to a one-off gain from the disposal of a subsidiary in the prior period - **Other Income, Net Details** | Item | 2025 First Half (Thousand HKD) | 2024 First Half (Thousand HKD) | | :--- | :--- | :--- | | Government grants | 2,591 | 1,340 | | Gain on disposal of a subsidiary | — | 4,901 | | Net exchange (loss) / gain | (8) | 1,602 | | Bank interest income | 100 | 53 | | **Total** | **3,010** | **8,128** | - Net other income decreased by **62.9% year-on-year**, mainly due to a **one-off gain of HKD 4.901 million** from the disposal of a subsidiary in the first half of 2024[27](index=27&type=chunk) [6. Finance Costs](index=11&type=section&id=6.%20Finance%20Costs) Finance costs for the period significantly decreased by approximately 38.6% to HKD 3.923 million, primarily due to reduced interest on bank and other borrowings and loans from the ultimate holding company - **Finance Costs Details** | Item | 2025 First Half (Thousand HKD) | 2024 First Half (Thousand HKD) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 3,233 | 4,784 | | Interest on lease liabilities | 162 | 183 | | Interest on loans from direct holding company | 123 | 128 | | Interest on loans from ultimate holding company | 377 | 1,298 | | Bank charges | 28 | — | | **Total** | **3,923** | **6,393** | - Finance costs decreased by approximately **HKD 2.47 million year-on-year**, mainly due to a decrease in interest on bank and other borrowings and interest on loans from the ultimate holding company[28](index=28&type=chunk) [7. Profit Before Tax](index=12&type=section&id=7.%20Profit%20Before%20Tax) Profit before tax increased to HKD 6.511 million from HKD 5.489 million in the prior period, influenced by increased staff costs, stable depreciation and amortization, higher impairment provisions for receivables, and net exchange losses - **Profit Before Tax Deducted/(Credited) Items** | Item | 2025 First Half (Thousand HKD) | 2024 First Half (Thousand HKD) | | :--- | :--- | :--- | | Staff costs | 31,934 | 27,889 | | Cost of services provided and goods sold | 119,533 | 119,757 | | Depreciation (own assets) | 11,337 | 12,486 | | Amortisation of land use rights | 249 | 243 | | Impairment loss allowance, net | 3,531 | 2,489 | | Net exchange loss / (gain) | 8 | (1,602) | - Staff costs increased by approximately **HKD 4.045 million year-on-year**, primarily due to increases in salaries and allowances and retirement benefit contributions[29](index=29&type=chunk) - Net impairment loss allowance for trade and other receivables and government grants increased by approximately **HKD 1.042 million year-on-year**[29](index=29&type=chunk) [8. Income Tax Expense](index=12&type=section&id=8.%20Income%20Tax%20Expense) Income tax expense for the period increased to HKD 2.997 million from HKD 2.096 million in the prior period, with no Hong Kong profits tax provision due to losses, and China corporate income tax calculated at a standard 25% rate, with some subsidiaries enjoying a 5% preferential rate - **Income Tax Expense Details** | Item | 2025 First Half (Thousand HKD) | 2024 First Half (Thousand HKD) | | :--- | :--- | :--- | | Current tax - China corporate income tax | 3,789 | 3,040 | | Deferred tax - origination and reversal of temporary differences | (792) | (944) | | **Total** | **2,997** | **2,096** | - The Company and its Hong Kong subsidiaries did not make a provision for Hong Kong profits tax due to recorded tax losses[30](index=30&type=chunk) - Certain PRC subsidiaries, such as Wuhan Yangluo Port Logistics Co., Ltd. and Tongshang Supply Chain Management (Wuhan) Co., Ltd., are recognized as small-profit enterprises and enjoy a **preferential corporate income tax rate of 5%**[30](index=30&type=chunk) [9. Earnings Per Share](index=13&type=section&id=9.%20Earnings%20Per%20Share) Basic earnings per share attributable to owners of the Company decreased to 0.14 HK cents from 0.2 HK cents in the prior period, with diluted earnings per share being the same as basic earnings per share due to no dilutive potential ordinary shares - **Basic Earnings Per Share Calculation** | Indicator | 2025 First Half | 2024 First Half | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (Thousand HKD) | 2,473 | 3,468 | | Weighted average number of ordinary shares in issue | 1,725,066,689 | 1,725,066,689 | | Basic Earnings Per Share (HK cents) | 0.14 | 0.2 | - Diluted earnings per share is the same as basic earnings per share, as there were **no dilutive potential ordinary shares** in issue during the current and prior periods[32](index=32&type=chunk) [10. Dividends](index=13&type=section&id=10.%20Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the current period (2024: nil)[33](index=33&type=chunk) [11. Investment Properties](index=14&type=section&id=11.%20Investment%20Properties) The Group's investment properties, including leased land, berths, commercial buildings, pontoons, yards, warehouses, and buildings under construction in China, increased in net book value to HKD 819.7 million as of June 30, 2025, but recorded a net fair value loss of HKD 1.615 million during the period - **Investment Properties Net Book Value Reconciliation** | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Opening net book value | 798,251 | 824,480 | | Net fair value changes recognised in profit or loss | (1,615) | (1,734) | | Exchange adjustments | 23,098 | (24,495) | | Closing net book value | 819,734 | 798,251 | - Investment properties recorded a **fair value loss of HKD 1.615 million** during the period, mainly due to a decrease in market rental levels for warehouse properties at the logistics center adjacent to Shayang Port[71](index=71&type=chunk) [12. Property, Plant and Equipment](index=14&type=section&id=12.%20Property,%20Plant%20and%20Equipment) As of June 30, 2025, the net book value of property, plant and equipment slightly decreased to HKD 314.2 million, with minor additions offset by depreciation and exchange adjustments - **Property, Plant and Equipment Net Book Value Reconciliation (Excerpt)** | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Opening net book value | 317,701 | 354,135 | | Additions | 179 | 1,478 | | Depreciation | (12,621) | (26,682) | | Exchange adjustments | 8,976 | (9,991) | | Closing net book value | 314,235 | 317,701 | [13. Inventories](index=15&type=section&id=13.%20Inventories) As of June 30, 2025, total inventories significantly increased to HKD 16.174 million, primarily due to the emergence of trade goods inventories totaling HKD 10.235 million - **Inventories Details** | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Trade goods, at cost | 10,235 | — | | Consumables, at cost | 5,939 | 5,802 | | **Total** | **16,174** | **5,802** | [14. Trade and Other Receivables](index=15&type=section&id=14.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables increased to HKD 96.702 million, with trade receivables and bills (net of impairment allowance) at HKD 89.24 million, and a significant increase in amounts overdue by more than 90 days - **Trade and Other Receivables Details** | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Trade receivables and bills (net of impairment allowance) | 89,240 | 73,254 | | Other receivables (net of impairment allowance) | 7,462 | 6,841 | | **Total** | **96,702** | **80,095** | - **Ageing Analysis of Trade Receivables and Bills (Net of Impairment Allowance)** | Ageing | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | 0 — 30 days | 23,718 | 14,166 | | 31 — 60 days | 13,626 | 30,046 | | 61 — 90 days | 9,043 | 7,072 | | Over 90 days | 42,853 | 21,970 | | **Total** | **89,240** | **73,254** | [15. Trade and Other Payables](index=16&type=section&id=15.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to HKD 120.3 million, with an increase in trade payables, particularly for amounts aged 61-90 days - **Trade and Other Payables Details** | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Trade payables | 25,346 | 19,155 | | Amounts due to subcontractors | 50,001 | 50,253 | | Accrued expenses and other payables | 44,966 | 42,342 | | **Total** | **120,313** | **111,750** | - **Ageing Analysis of Trade Payables** | Ageing | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | 0 — 30 days | 8,770 | 6,180 | | 31 — 60 days | 4,081 | 4,988 | | 61 — 90 days | 4,748 | 582 | | Over 90 days | 7,747 | 7,405 | | **Total** | **25,346** | **19,155** | [16. Bank Borrowings](index=17&type=section&id=16.%20Bank%20Borrowings) As of June 30, 2025, total bank borrowings decreased to HKD 209 million, with a reduction in secured borrowings and a slight increase in unsecured borrowings, some of which are guaranteed by Hubei Port Group and secured by port facilities and land use rights - **Bank Borrowings Details** | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Unsecured | 108,820 | 105,830 | | Secured | 100,189 | 115,442 | | **Total** | **209,009** | **221,272** | | Less: Due within one year (current liabilities) | (146,016) | (141,979) | | Due after one year (non-current liabilities) | 62,993 | 79,293 | - As of June 30, 2025, certain bank borrowings of the Group are guaranteed by **Hubei Port Group** and a subsidiary of the Group, and are secured by port facilities, terminal equipment, and land use rights with a carrying value of approximately **HKD 19.25 million**[38](index=38&type=chunk) [17. Disposal of a Subsidiary](index=18&type=section&id=17.%20Disposal%20of%20a%20Subsidiary) This section reviews the Group's disposal of a 60% equity interest in Zhongxiang Zhongji Port Company on June 18, 2024, which generated a gain of HKD 4.901 million and net cash inflow of HKD 74.721 million - The Group completed the disposal of a **60% equity interest in Zhongxiang Zhongji Port Company** on June 18, 2024, for a cash consideration of RMB 69,576,900[39](index=39&type=chunk) - **Gain and Net Cash Inflow from Disposal** | Item | June 18, 2024 (Thousand HKD) | | :--- | :--- | | Net assets disposed of | 120,381 | | Consideration received | 74,733 | | Gain on disposal | 4,901 | | Net cash inflow from disposal | 74,721 | [18. Loans from Direct and Ultimate Holding Companies](index=19&type=section&id=18.%20Loans%20from%20Direct%20and%20Ultimate%20Holding%20Companies) As of June 30, 2025, loans from the direct holding company have been repaid, while loans from the ultimate holding company amount to HKD 23.856 million, bearing interest at 3.5% per annum and repayable within one year - **Loans from Holding Companies** | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Loans from direct holding company | — | 7,000 | | Loans from ultimate holding company | 23,856 | 23,342 | | **Total** | **23,856** | **30,342** | - As of June 30, 2025, loans from direct and ultimate holding companies are **unsecured**, bear interest at an annual rate of **3.5%** (December 31, 2024: 3.65%), and are repayable within one year[42](index=42&type=chunk) [Management Discussion and Analysis](index=20&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section analyzes industry developments, the overall business environment, operating performance of core ports and business segments, and outlines future development strategies, highlighting Yangluo Port's growth despite trade challenges and the Group's focus on smart, green port construction and supply chain expansion [Industry Development](index=20&type=section&id=Industry%20Development) Wuhan ports continue to expand river-sea intermodal and direct routes, including international lines to Japan, Korea, Russia, and Vietnam, with Yangluo Port advancing green and smart port initiatives, though the US-China tariff war continues to impact foreign trade - Wuhan has opened multiple river-sea direct international routes, including to Japan, Korea, Russia, and Ho Chi Minh City, Vietnam, and launched a **bulk cargo international liner service from Wuhan Yangluo Port to Labota Port, Indonesia** in November 2024[43](index=43&type=chunk) - Yangluo Port continues to promote **green and smart port construction**, utilizing new energy vehicles and remote control gantry cranes, and implementing the "one vessel, one trailer" service model to enhance operational efficiency[43](index=43&type=chunk) - The ongoing **US-China tariff war** continues to affect the overall domestic market, leading to cancellations of customer orders and factory shutdowns for some import and export goods, with the foreign trade situation remaining severe[44](index=44&type=chunk) [Overall Business Environment](index=21&type=section&id=Overall%20Business%20Environment) China Merchants Group's core business revolves around port operations and logistics, with Wuhan Yangluo Port ranking third among inland river ports in business environment, and the Group actively expanding new projects and cargo sources to achieve growth in container throughput and revenue - Wuhan Yangluo Port ranked **3rd among inland river ports** in the 2024 business environment comprehensive evaluation, up 2 places from 2023[45](index=45&type=chunk) - **China Port Throughput, January-June 2025** | Indicator | Throughput | Year-on-Year Growth | | :--- | :--- | :--- | | Port cargo throughput | 8.903 billion tonnes | +3.8% | | Coastal port cargo throughput | 5.703 billion tonnes | +2.5% | | Foreign trade cargo throughput | 2.738 billion tonnes | +1.8% | | Container throughput | 173 million TEUs | +6.9% | - The Group is actively expanding new projects and cargo sources, including **GEM Co., Ltd.'s import and export bulk cargo business**, Daming steel coils and other general and bulk cargo handling, Xiaopeng Motors CKD parts export, and agency services for Shanghai Zhuyunshang Company's imported pulp, aiming for dual growth in port container volume and revenue[46](index=46&type=chunk)[47](index=47&type=chunk) [Wuhan Yangluo Port and General Ports](index=22&type=section&id=Wuhan%20Yangluo%20Port%20and%20General%20Ports) Wuhan Yangluo Port, a core hub in the middle reaches of the Yangtze River, leverages its industrial base and strategic location to provide extensive transshipment services, expanding regional and international direct routes to enhance cargo flow efficiency and its international hub status - Wuhan Yangluo Port, as the core port area of the Yangtze River Middle Reaches Shipping Center, has an economic hinterland covering provinces and cities including Hunan, Guizhou, Chongqing, Sichuan, Shanxi, Henan, Hubei, and Shaanxi[48](index=48&type=chunk)[49](index=49&type=chunk) - New regional routes such as **"Wuhan-Huanggang" and "Wuhan-Ezhou"** and the **"Yangluo Port to Cai Lai Port, Vietnam" river-sea direct route** have been opened, along with increased frequency for **"Wuhan-Japan, Korea, Russia" international direct routes**, enhancing cargo flow efficiency and international hub status[49](index=49&type=chunk) - The port is comprehensively enhancing its service functions and levels by establishing gate inspection points, collaborating with shipping companies to set up empty container distribution centers, signing a regional container management agreement with CMA CGM, and partnering with China Port Logistics for CFS business[51](index=51&type=chunk) [Hannan Port](index=23&type=section&id=Hannan%20Port) Hannan Port, strategically located in Wuhan Economic and Technological Development Zone, will synergize with Wuhan Yangluo Port to increase throughput, with plans for multi-phase development into a diversified business platform focusing on automotive logistics and trading, aiming to become a key logistics and automotive trading hub in southwest Wuhan - Hannan Port will create **synergies with Wuhan Yangluo Port**, increasing Yangluo Port's throughput and providing more cost-effective solutions for customers[53](index=53&type=chunk) - Hannan Port will be developed in multiple phases into a diversified business platform, offering terminal, warehousing, and logistics services, with a focus on **automotive logistics and trading**, as well as general cargo and container business[53](index=53&type=chunk) - Hannan Port aims to become the largest port in Central China integrating supply chain design and operation, water transport logistics distribution, automotive O2O trading, multimodal transport, logistics finance, allocation and distribution, and customs brokerage[53](index=53&type=chunk) [Hanjiang Logistics Centre](index=24&type=section&id=Hanjiang%20Logistics%20Centre) The Group owns the Hanjiang Logistics Centre, comprising seven warehouses and an ancillary office building adjacent to Shayang Port, which is planned to be held as investment property for rental income - The Hanjiang Logistics Centre, consisting of **seven warehouses and an ancillary office building**, is planned to be held as investment property to generate rental income[54](index=54&type=chunk) [Tongshang Supply Chain](index=24&type=section&id=Tongshang%20Supply%20Chain) Tongshang Supply Chain Management (Wuhan) Co., Ltd. leverages Yangluo Port's strategic location and the Group's port management expertise to provide integrated logistics services in essential goods like grain, rubber, and agricultural products, aiming to build a modern port-side supply chain system and a bulk commodity trading center centered around Yangluo Port - Tongshang Supply Chain Management (Wuhan) Co., Ltd. leverages Yangluo Port's geographical advantages and the Group's port management experience to focus on essential goods such as **grain, rubber, and agricultural and sideline products**, providing integrated logistics services including logistics, warehousing, distribution, and supply chain finance[55](index=55&type=chunk)[56](index=56&type=chunk) - Tongshang Supply Chain aims to build a modern port-side supply chain system of **"port + trade + warehousing + logistics"**, promoting port-industry-city integration and creating a bulk commodity trading center with Yangluo Port at its core[56](index=56&type=chunk) [Operating Results](index=25&type=section&id=Operating%20Results) During the period, Group revenue slightly increased by 0.5% to HKD 157.9 million, driven by growth in integrated logistics and terminal services, offsetting a decline in supply chain management and trading business; gross profit rose by 2.6% with a margin of 24.3%, but profit attributable to owners of the Company decreased by 28.7% to HKD 2.473 million due to reduced other income (including a prior year's one-off gain) and increased fair value losses on investment properties, resulting in earnings per share of 0.14 HK cents [Revenue](index=25&type=section&id=Revenue) During the period, Group revenue slightly increased by 0.5% to HKD 157.9 million, with significant growth in integrated logistics services (43.9%), terminal and related services (2.7%), and property business (8.2%), partially offset by a 29.1% decline in supply chain management and trading business - **Revenue by Business Segment Details** | Business Segment | 2025 First Half (Thousand HKD) | Share | 2024 First Half (Thousand HKD) | Share | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Terminal services | 53,255 | 33.7% | 56,361 | 35.9% | (3,106) | (5.5%) | | Container handling, storage and other services | 17,211 | 10.9% | 16,380 | 10.4% | 831 | 5.1% | | Bulk cargo handling services | 5,809 | 3.7% | 1,528 | 1.0% | 4,281 | 280.2% | | **Subtotal Terminal and Related Services** | **76,275** | **48.3%** | **74,269** | **47.3%** | **2,006** | **2.7%** | | Integrated logistics services | 40,492 | 25.6% | 28,141 | 17.9% | 12,351 | 43.9% | | Supply chain management and trading business | 34,398 | 21.8% | 48,505 | 30.8% | (14,107) | (29.1%) | | Property business | 6,774 | 4.3% | 6,262 | 4.0% | 512 | 8.2% | | **Total Revenue** | **157,939** | **100%** | **157,177** | **100.0%** | **762** | **0.5%** | - The increase in revenue was primarily due to an increase of approximately **HKD 12.351 million in integrated logistics services** and approximately **HKD 2.006 million in terminal and related services**, offsetting the decrease of approximately **HKD 14.107 million in supply chain management and trading business**[59](index=59&type=chunk) [Terminal Services](index=26&type=section&id=Terminal%20Services) Wuhan Yangluo Port's container throughput slightly increased by 1% to 450,279 TEUs, with a 5.3% rise in transshipment containers offsetting a decrease in local cargo containers, while market share declined to approximately 43.4% due to handling GEM general cargo and the US-China tariff war - **Container Throughput** | Type | 2025 First Half (TEUs) | Share | 2024 First Half (TEUs) | Share | Change (TEUs) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Local cargo containers | 176,969 | 39.3% | 186,336 | 41.8% | (9,367) | (5.0%) | | Transshipment containers | 273,310 | 60.7% | 259,469 | 58.2% | 13,841 | 5.3% | | **Total Throughput** | **450,279** | **100%** | **445,805** | **100%** | **4,474** | **1.0%** | - The increase in transshipment containers was mainly due to increased frequency of Sichuan and Chongqing transshipment routes and the opening of new routes such as Huangshi, Rizhao, and Ezhou lines[61](index=61&type=chunk) - Yangluo Port's market share decreased from approximately **47.9%** in the prior period to approximately **43.4%** in the current period, primarily affected by handling GEM general cargo and the US-China tariff war[62](index=62&type=chunk) [Integrated Logistics Services](index=27&type=section&id=Integrated%20Logistics%20Services) Integrated logistics services revenue significantly increased by 43.9% to HKD 40.492 million, accounting for 25.6% of the Group's total revenue, primarily driven by increased freight forwarding volume at Wuhan Yangluo Port - Integrated logistics services revenue increased to approximately **HKD 40.492 million** (prior period: approximately HKD 28.141 million), accounting for approximately **25.6%** of the Group's total revenue (prior period: approximately 17.9%)[63](index=63&type=chunk) - The increase in revenue was mainly due to an increase in freight forwarding volume at Wuhan Yangluo Port during the period[64](index=64&type=chunk) [Supply Chain Management and Trading Business](index=27&type=section&id=Supply%20Chain%20Management%20and%20Trading%20Business) Supply chain management and trading business revenue decreased by 29.1% to HKD 34.398 million, representing 21.8% of the Group's total revenue, primarily due to relatively lower demand for rice and broken rice trading business during the period - Supply chain management and trading business revenue decreased by **29.1% to HKD 34.398 million** (prior period: HKD 48.505 million)[65](index=65&type=chunk) - The decrease in revenue was mainly due to relatively lower demand for rice and broken rice trading business during the period[66](index=66&type=chunk) [Property Business](index=27&type=section&id=Property%20Business) Property business revenue increased by 8.2% to HKD 6.774 million, accounting for 4.3% of the Group's total revenue, primarily due to increased warehouse rental income at Hannan Port - Property business revenue increased to approximately **HKD 6.774 million** (prior period: approximately HKD 6.262 million), accounting for approximately **4.3%** of the Group's total revenue (prior period: approximately 4.0%)[67](index=67&type=chunk) - The increase in revenue was mainly due to an increase in warehouse rental income at Hannan Port[68](index=68&type=chunk) [Gross Profit and Gross Profit Margin](index=27&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit for the period was HKD 38.406 million, a 2.6% year-on-year increase, with the gross profit margin improving to 24.3%, primarily driven by the continuous growth in integrated logistics services volume - **Gross Profit and Gross Profit Margin** | Indicator | 2025 First Half (Thousand HKD) | 2024 First Half (Thousand HKD) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 38,406 | 37,420 | 986 | +2.6% | | Gross Profit Margin | 24.3% | 23.8% | +0.5pp | | - The increase in gross profit was mainly due to increased revenue from the continuous growth in integrated logistics services volume[69](index=69&type=chunk) [Other Income](index=28&type=section&id=Other%20Income) Other income decreased by 62.9% to HKD 3.018 million, primarily due to a one-off gain of HKD 4.901 million recorded from the disposal of a subsidiary in the prior period - Other income decreased by approximately **62.9% to approximately HKD 3.018 million** (prior period: approximately HKD 8.128 million)[70](index=70&type=chunk) - This decrease was mainly due to the Group recording a **gain of approximately HKD 4.901 million** from the disposal of a subsidiary in the prior period[70](index=70&type=chunk) [Changes in Fair Value of Investment Properties](index=28&type=section&id=Changes%20in%20Fair%20Value%20of%20Investment%20Properties) The Group recorded a fair value loss on investment properties of HKD 1.615 million, an increase from the HKD 1.298 million loss in the prior period, primarily due to a decline in market rental levels for warehouse properties at the logistics center adjacent to Shayang Port - The Group recorded a fair value loss on investment properties of approximately **HKD 1.615 million** (prior period: fair value loss of approximately HKD 1.298 million)[71](index=71&type=chunk) - The increase in fair value loss on investment properties was mainly due to a decrease in market rental levels for warehouse properties at the logistics center adjacent to Shayang Port[71](index=71&type=chunk) [Profit Attributable to Owners of the Company](index=28&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) Profit attributable to owners of the Company decreased by 28.7% to HKD 2.473 million, primarily due to the combined impact of reduced other income (including a prior year's one-off disposal gain), increased fair value losses on investment properties, and higher income tax expense, despite improvements in gross profit and net finance costs - Profit attributable to owners of the Company decreased by approximately **HKD 0.995 million or approximately 28.7% to approximately HKD 2.473 million** (prior period: approximately HKD 3.468 million)[72](index=72&type=chunk) - The decrease in profit was mainly due to the offsetting effects of reduced other income (including a one-off gain from the disposal of a subsidiary in the prior year), increased fair value losses on investment properties, and increased income tax expense[72](index=72&type=chunk) - Basic earnings per share attributable to owners of the Company for the period was approximately **0.14 HK cents** (prior period: approximately 0.2 HK cents)[73](index=73&type=chunk) [Future Outlook](index=29&type=section&id=Future%20Outlook) Under the strategic guidance of Hubei Port Group, the Group will focus on industrial upgrading, management reform, technological innovation, risk control, and value enhancement, advancing smart and green port construction, deepening international cooperation, and expanding supply chain businesses - The Group will anchor its high-quality development goals, systematically advancing five core tasks: **industrial upgrading, management reform, technological innovation, risk control, and value enhancement**[74](index=74&type=chunk) - Yangluo Port will comprehensively promote **smart and green port construction**, deepen cooperation with international ports, expand "Belt and Road" routes, and strengthen cooperation with cities along the Yangtze River to enhance its status as a shipping center in the middle reaches of the Yangtze River[74](index=74&type=chunk) - Hannan Port will fully leverage its national first-class port policy advantages, focusing on developing **automotive finished vehicle logistics, high-end equipment bonded services, and supply chain integration businesses**, to build a modern port-side industrial demonstration zone radiating across Central China[74](index=74&type=chunk) - In domestic and international supply chain businesses, the Group will leverage Hubei Port Group's **"port + rail + shipping" multimodal transport advantages**, consolidate its base in bulk commodity supply chains, and continuously enhance the resilience and value creation capabilities of its industrial and supply chains through optimizing global resource allocation, innovating service models, and strengthening risk control[74](index=74&type=chunk) [Other Information](index=30&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers share option schemes, financial resources, liquidity, exchange rate risk, investments, capital commitments, contingent liabilities, asset pledges, capital structure, employees, remuneration, future investment plans, interim dividends, listed securities transactions, corporate governance, and post-reporting period events, noting stable net gearing but persistent net current liabilities and compliance with corporate governance codes [Share Option Scheme](index=30&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on May 25, 2018, but no options have been granted, exercised, lapsed, or cancelled, and no unexercised options exist since its adoption and up to the date of this announcement - Since the adoption of the share option scheme and up to the date of this announcement, **no share options have been granted or agreed to be granted, exercised, lapsed, or cancelled** under the scheme[75](index=75&type=chunk) - As of the date of this announcement, there are **no unexercised share options** under the share option scheme[75](index=75&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=30&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) During the period, no directors were granted any share options to subscribe for shares - During the period, **no directors were granted any share options** to subscribe for shares[76](index=76&type=chunk) [Financial Resources and Liquidity](index=30&type=section&id=Financial%20Resources%20and%20Liquidity) The Group primarily funds operations and capital expenditures through internal resources, shareholder loans, and bank borrowings, with total interest-bearing borrowings of HKD 232.9 million, cash and cash equivalents of HKD 37.19 million, and net assets of HKD 841.7 million as of June 30, 2025, resulting in a net gearing ratio of 0.3 times and net current liabilities of HKD 138.5 million - **Key Financial Resources and Liquidity Indicators** | Indicator | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total outstanding interest-bearing borrowings | 232,865 | 251,614 | | Total cash and cash equivalents | 37,190 | 58,662 | | Consolidated net assets | 841,710 | 814,289 | | Net gearing ratio | 0.3 times | 0.3 times | | Net current liabilities | 138,467 | 131,644 | | Current ratio | 0.6 times | 0.6 times | [Exchange Rate Risk](index=31&type=section&id=Exchange%20Rate%20Risk) The Board believes the Group had no significant foreign exchange risk during the period, as its primary business operations in China are mainly transacted in Renminbi - The Group operates its business in China, with its primary operations mainly transacted in Renminbi, thus the Board believes the Group had **no significant foreign exchange risk** during the period[79](index=79&type=chunk) [Material Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=31&type=section&id=Material%20Investments%20Held,%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) During the period, the Group had no other material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the period, there were **no other material investments, material acquisitions, or disposals** of subsidiaries, associates, or joint ventures[80](index=80&type=chunk) [Capital Commitments](index=31&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital commitments for the construction of port facilities amounted to HKD 41.817 million, a slight increase from the end of 2024 - **Capital Commitments** | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Contracted but unprovided capital commitments for construction of port facilities | 41,817 | 40,640 | [Contingent Liabilities](index=31&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had **no significant contingent liabilities** (December 31, 2024: nil)[82](index=82&type=chunk) [Pledge of Assets](index=31&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had pledged port facilities and terminal equipment with a carrying value of approximately HKD 3.604 million, and land use rights of approximately HKD 15.646 million, as collateral for bank and other borrowings - **Carrying Value of Pledged Assets** | Pledged Assets | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Property, plant and equipment — port facilities and terminal equipment | 3,604 | 3,681 | | Land use rights | 15,646 | 15,451 | | **Total** | **19,250** | **19,132** | [Capital Structure](index=31&type=section&id=Capital%20Structure) As of June 30, 2025, the Group's total equity increased to HKD 841.7 million compared to the end of 2024 - **Total Equity** | Indicator | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total equity | 841,710 | 814,289 | [Employees and Remuneration Policy](index=32&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 314 employees, providing retirement, medical, unemployment insurance, and housing funds for PRC employees, and MPF and medical benefits for Hong Kong employees, with remuneration policies based on performance, qualifications, responsibilities, and market value - As of June 30, 2025, the Group had **314 employees** (December 31, 2024: 328 full-time employees)[85](index=85&type=chunk) - The Group arranges for its PRC employees to participate in **retirement, medical, unemployment insurance, and housing fund schemes**, and makes contributions to the Hong Kong Mandatory Provident Fund Scheme and provides medical benefits for its Hong Kong employees[85](index=85&type=chunk) - Remuneration policies are similar to those of peers, with salaries determined based on employee performance and qualifications, referencing their respective responsibilities and current market value in the region[85](index=85&type=chunk) [Future Plans for Material Investments or Capital Assets](index=32&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) During the period, the Board did not authorize any material investments or capital asset additions, but the Group will continue to seek suitable opportunities to invest in or acquire material capital assets to enhance its ordinary business profitability - During the period, the Board did not authorize any **material investments or capital asset additions**[86](index=86&type=chunk) - The Group will continue to seek suitable opportunities to invest in or acquire material capital assets to enhance the profitability of its ordinary business[86](index=86&type=chunk) [Interim Dividend](index=32&type=section&id=Interim%20Dividend) The Board resolved not to declare any interim dividend for the current period, consistent with the prior period - The Board resolved not to declare any interim dividend for the current period (prior period: nil)[87](index=87&type=chunk) [Purchase, Redemption or Sale of Listed Securities](index=32&type=section&id=Purchase,%20Redemption%20or%20Sale%20of%20Listed%20Securities) During the period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[88](index=88&type=chunk) - As of June 30, 2025, the Company held **no treasury shares**[88](index=88&type=chunk) [Compliance with Corporate Governance Code](index=32&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) During the period, the Company consistently complied with the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules - During the period, the Company consistently complied with the **Corporate Governance Code** set out in Appendix C1 Part 2 of the Listing Rules[89](index=89&type=chunk) [Compliance with Standard Code for Securities Transactions by Directors](index=33&type=section&id=Compliance%20with%20Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance with its required standards during the period - The Company has adopted the **Standard Code for Securities Transactions by Directors of Listed Issuers** as set out in Appendix C3 of the Listing Rules[90](index=90&type=chunk) - All directors confirmed that they have complied with the required standards set out in the Standard Code when dealing in the Company's securities during the period[90](index=90&type=chunk) [Events After Reporting Period](index=33&type=section&id=Events%20After%20Reporting%20Period) The Group had no other significant events after the reporting period and up to the date of this announcement - The Group had **no other significant events** after the reporting period and up to the date of this announcement[91](index=91&type=chunk) [Review by Audit Committee](index=33&type=section&id=Review%20by%20Audit%20Committee) The Group's condensed consolidated results for the period were not reviewed by external auditors but were reviewed by the Audit Committee, which confirmed the adopted accounting principles and discussed audit, internal control, risk management, and financial reporting matters - The Group's condensed consolidated results for the period were **not reviewed by external auditors** but were reviewed by the Audit Committee[92](index=92&type=chunk) - The Audit Committee reviewed and confirmed the accounting principles and practices adopted by the Group, and discussed audit, internal control, risk management, and financial reporting matters[92](index=92&type=chunk) - The Audit Committee comprises Ms. Yu Ling, a non-executive Director, and Mr. Zou Guoqiang (Chairman), Mr. Fu Xinping, and Dr. Mao Zhenhua, three independent non-executive Directors[92](index=92&type=chunk)

Core Viewpoint - As of the market close on August 21, a total of 86 stocks reached their 52-week highs, indicating a positive trend in the market [1] Group 1: Stocks Reaching 52-Week Highs - The top three stocks with the highest new high rates are: - Tian Shi Resources (08028) with a high rate of 76.34%, closing at 0.320 and reaching a peak of 0.395 [2] - Da Yu Financial Equity (02930) with a high rate of 62.86%, closing at 0.044 and reaching a peak of 0.057 [2] - Heng Fu Holdings (00643) with a high rate of 32.88%, closing at 0.880 and reaching a peak of 0.970 [2] - Other notable stocks include: - Yi Chen Group (08365) with a high rate of 14.42% [2] - China Biotechnology Services (08037) with a high rate of 14.13% [2] - Jin Bang Da Bao Jia (03315) with a high rate of 12.80% [2] Group 2: Stocks Reaching 52-Week Lows - The stocks that reached their 52-week lows include: - China Tongshang Group (01719) with a low rate of -12.50%, closing at 0.395 and reaching a low of 0.350 [2] - Global Friendly Drink Smart (08496) with a low rate of -8.93% [2] - Guohong Hydrogen Energy (09663) with a low rate of -7.17% [2] - Additional stocks with significant declines include: - Xi Ye Rong Technology (08107) with a low rate of -6.67% [2] - Rong Wanjia (02146) with a low rate of -6.25% [2]

Group 1 - The company, China Commerce Group (01719.HK), announced that it will hold a board meeting on August 28, 2025, to consider and approve its unaudited interim results for the six months ending June 30, 2025 [1] - The meeting will also consider the proposal for an interim dividend, if any, and address any other matters [1]

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之內容概不負責，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之任何損失承擔任何責任。 China Infrastructure & Logistics Group Ltd. 1719 董事會會議召開日期 中國通商集團有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈，本公司將於二 零二五年八月二十八日（星期四）舉行董事會會議，以（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未經審核中期業績及其發佈；考慮建議 派付中期股息（如有）；以及處理任何其他事項。 承董事會命 中國通商集團有限公司 執行董事兼主席 費本君先生 香港，二零二五年八月十一日 於本公告日期，董事會包括執行董事費本君先生及喬雲先生；非執行董事李偉先生及 喻玲女士；以及獨立非執行董事鄒國強先生、付新平先生及毛振華博士。 ...

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: 中國通商集團有限公司 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) | 01719 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.1 | HKD | | 200,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.1 | HKD | | 200,000,000 | 本月底法定/註冊股本 ...

Company Overview - China Communications Group Limited is registered in the Cayman Islands and primarily operates from Hong Kong [2] - The company was listed on the Hong Kong Stock Exchange's Growth Enterprise Market on September 16, 2005, and transferred to the Main Board on January 29, 2018 [2] - The direct controlling company is China Communications Investment Group Limited, which is ultimately controlled by Mr. Yan Zhi through Zhaor Holdings Limited [2] Recent Performance - As of June 26, the stock price of China Communications Group was HKD 0.76 per share, reflecting a 22.58% increase with a trading volume of 248,000 shares and a turnover of HKD 173,700 [1] - Over the past month, the stock has seen a cumulative decline of 8.82%, and a year-to-date decline of 17.33%, underperforming the Hang Seng Index which has increased by 22.01% [1] Financial Metrics - For the fiscal year ending December 31, 2024, the company reported total revenue of HKD 36.7 million, representing a year-on-year growth of 9.75% [1] - The net profit attributable to shareholders was HKD 11.7552 million, a decrease of 17.36% year-on-year [1] - The gross profit margin stood at 15.54%, and the debt-to-asset ratio was 37.72% [1] Industry Valuation - The average price-to-earnings (P/E) ratio for the industrial transportation sector is 9.47 times, with a median of 7.28 times [1] - China Communications Group has a P/E ratio of 84.26 times, ranking 51st in the industry [1] - Comparatively, other companies in the sector have significantly lower P/E ratios, such as China Resources Transportation at 0.15 times and COSCO Shipping Holdings at 3.57 times [1] Ownership Structure - Hubei Port (Hong Kong) International Limited became the direct controlling shareholder after acquiring shares from China Communications Investment and Zhaor Holdings, increasing its stake to approximately 87.66% [3] - Hubei Port is fully owned by Hubei Port Group, which is ultimately controlled by the Wuhan Municipal Government's State-owned Assets Supervision and Administration Commission [3] Business Operations - The company primarily engages in investment, development, operation, and management of container and other ports, as well as providing port-related logistics and services [3]

Financial Performance - Revenue increased by approximately 9.8% to HKD 396,529,000 (2023: HKD 361,301,000) [10] - Gross profit decreased by 20.7% to HKD 61,613,000, with a gross margin of 15.5% (2023: 21.5%) [10] - Profit attributable to owners decreased by 17.4% to HKD 12,694,000 (2023: HKD 15,360,000) [11] - The total profit for 2024 was HKD 12,895,000, a decrease of 6.5% compared to the previous year [20] - The revenue from comprehensive logistics services increased by 30.8% to HKD 49,990,000, compared to HKD 38,230,000 in 2023, accounting for 12.6% of total revenue [37] - The revenue from supply chain management and trading business rose by 16.8% to HKD 184,797,000, driven by strong demand for rice and broken rice trading [33] - Property business revenue decreased by 5.6% to HKD 12,034,000, representing about 3.0% of total revenue [42] - Other income increased by approximately 71.5% to HKD 37,934,000, primarily due to the sale of a subsidiary and compensation income from past construction contracts [45] Operational Highlights - The company launched new direct shipping routes, including "Indonesia - Wuhan," enhancing logistics efficiency and reducing costs [16] - The company completed the export of 1,367 standard containers of automobiles and 1,600 standard containers of lithium batteries, representing year-on-year increases of 3.2% and 7%, respectively [16] - The company’s core business segments, including port operations and supply chain services, showed stable growth [16] - The container throughput reached 900,342 TEUs, an increase of 200 TEUs from the previous year [20] - The total container throughput at Wuhan Yangluo Port increased by approximately 0.1% to 900,342 TEUs, with local cargo throughput rising by 14.2% to 366,412 TEUs [34] - The market share of the group in the container throughput in Wuhan was approximately 25.7% for the year ended December 31, 2024, down from 32% in 2023 [36] Strategic Initiatives - The company is positioned as a key player in the "Belt and Road" initiative, connecting central and western regions with global markets [14] - The group plans to develop Hannan Port into the largest logistics hub in Central China, focusing on automotive logistics and multi-modal transport [29] - The group aims to enhance supply chain management and trade services to strengthen connections with upstream suppliers and downstream customers [31] - The group is focused on creating a modern supply chain system centered around Yangluo Port, integrating port, trade, warehousing, and logistics services [32] Governance and Management - Ms. Yu Ling appointed as a non-executive director since January 2025, with over 16 years of experience in financial management and investment management [76] - The company is expanding its market presence through strategic appointments and leveraging the expertise of its board members [78][80] - The board includes members with qualifications from prestigious institutions, enhancing governance and strategic decision-making capabilities [79] - The company is focused on improving financial management and operational efficiency through experienced leadership [76][77][78] - The company has appointed three independent non-executive directors, with at least one possessing appropriate professional accounting qualifications, in compliance with listing rules [94] Risk Management - The company faces cyclical risks, including overcapacity and intense price competition, with many companies historically failing to earn profits [64] - Financial risks arise from the need for substantial funding for infrastructure development, particularly for projects like the Hannan Port Phase II [68] - The company must maintain sufficient working capital levels to support its business model, as insufficient capital could adversely affect operations [73] - The board believes the group has a sufficient and effective risk management and internal control system to address significant financial, operational, compliance, and IT control risks [120] Environmental, Social, and Governance (ESG) Initiatives - The ESG report aims to transparently disclose the group's performance and commitments in environmental, social, and governance aspects over the past year [137] - The group emphasizes energy savings, greenhouse gas reduction, and providing training and development opportunities for employees [146] - The company reported a significant reduction in nitrogen oxides (NOX), sulfur oxides (SOX), and particulate matter (PM) emissions by approximately 99.15%, 15.73%, and 99.27% respectively compared to the previous year [157] - The company has implemented a series of environmental management goals to monitor progress in environmental protection efforts, ensuring compliance with relevant laws and regulations [155] - The company has established waste classification and recycling facilities in the office to enhance recycling rates and reduce waste disposal [166] Employee Welfare and Safety - The company has a total of 321 employees, with a gender ratio of approximately 79% male and 21% female [185] - In 2024, the company organized 83 safety training sessions to enhance employee safety awareness [186] - There were zero fatalities or work-related injuries reported in the past three years [188] - The company strictly adheres to various labor laws and regulations to protect employee rights and ensure a fair working environment [182] - Employees are entitled to various paid leave types, including statutory holidays, marriage leave, bereavement leave, maternity leave, and annual leave [184] Supplier and Procurement Practices - The company has established a standardized procurement procedure to ensure transparency and fairness in supplier selection [193] - A total of 182 suppliers were engaged, with 179 from China, 2 from Hong Kong, and 1 from Switzerland [194] - The company has not encountered any significant non-compliance incidents related to service quality during the reporting period [195] - There were no complaints received regarding the company's services during the reporting period [196]

Financial Performance - Revenue increased by approximately 9.8% to HKD 396,529,000 (2023: HKD 361,301,000) [2] - Gross profit decreased by 20.7% to HKD 61,613,000 (2023: HKD 77,653,000), with a gross margin of 15.5% (2023: 21.5%) [2] - Profit for the year decreased by approximately 6.5% to HKD 12,895,000 (2023: HKD 13,788,000) [2] - Profit attributable to owners of the company decreased by 17.4% to HKD 12,694,000 (2023: HKD 15,360,000) [2] - Total comprehensive income for the year amounted to a loss of HKD 14,383,000 (2023: loss of HKD 13,983,000) [5] - The company’s interest expenses for 2024 were HKD 11,357,000, a decrease from HKD 15,898,000 in 2023, indicating a reduction of approximately 28.5% [29][30] - Net profit attributable to owners decreased by 17.4% to HKD 12,694,000, with basic and diluted earnings per share of HKD 0.74 [69] Revenue Breakdown - Revenue from customer contracts for the year is reported as HKD 396,529,000, an increase from HKD 361,301,000 in the previous year, representing a growth of approximately 9.8% [23] - The revenue breakdown shows that terminal services generated HKD 110,647,000, while integrated logistics services contributed HKD 49,990,000, indicating stable performance in these segments [23] - The company’s revenue for 2024 reached HKD 396,529,000, representing a 9.8% increase compared to the previous year [45] - Revenue from integrated logistics services rose by 30.8% to HKD 49,990,000, primarily due to increased business volume at Wuhan Yangluo Port [58] - Supply chain management and trading business revenue increased by 16.8% to HKD 184,797,000, driven by strong demand for rice and broken rice trading [58] - Property business revenue decreased by 5.6% to HKD 12,034,000, contributing approximately 3.0% to total revenue [64] Assets and Liabilities - Non-current assets decreased to HKD 1,145,615,000 (2023: HKD 1,208,189,000) [6] - Current liabilities increased to HKD 293,414,000 (2023: HKD 384,421,000) [7] - Net current liabilities amounted to approximately HKD 132,000,000 as of December 31, 2024 [12] - Cash and cash equivalents amounted to approximately HKD 58,662,000, while total interest-bearing borrowings were HKD 251,614,000 [70] - Current liabilities net increased to HKD 131,644,000, with a current ratio of 0.6 [71] Dividends and Shareholder Returns - The board of directors did not recommend a final dividend for the year ended December 31, 2024 (2023: nil) [2] - The company did not recommend any dividend payment for the fiscal year ending December 31, 2024, consistent with the previous year [35] - No dividends are recommended for the year ending December 31, 2024, consistent with 2023 [81] Operational Developments - The company completed the integration of Yangluo Port's phases one to three, optimizing port logistics resources [46] - The company established new regional shipping routes, enhancing its logistics capabilities and expanding its service area [48] - The company signed agreements with three new container management clients, expected to bring an additional 340-600 TEUs monthly [49] - The company has established a logistics center adjacent to Shayang Port, consisting of seven warehouses and an office building, intended for rental income generation [53] - The company has integrated its operations at Yangluo Port, eliminating price competition and leveraging synergies since acquiring controlling interest in 2022 [59] Future Outlook and Strategy - The group expects to generate sufficient cash flow over the next twelve months from the reporting date [15] - The group has confirmed financial support from Hubei Port Group for the next twelve months if needed [15] - The group has no significant uncertainties regarding its ability to continue as a going concern for at least the next twelve months [13] - The company plans to develop Hannan Port into the largest logistics hub in Central China, focusing on automotive logistics and multi-modal transport [52] - The company aims to enhance its supply chain management and trading operations to strengthen connections with upstream suppliers and downstream customers [54] - The company is focused on creating a modern supply chain system that integrates port, trade, warehousing, and logistics services [55] Governance and Compliance - The company adheres to high standards of corporate governance to enhance corporate value and accountability [85] - The audit committee has reviewed and confirmed the accounting principles and practices adopted by the group for the year ending December 31, 2024 [87] - The financial figures for the year ending December 31, 2024, have been agreed upon by the auditor, but no assurance opinion was expressed [88] - The annual performance announcement and report will be published on the Hong Kong Stock Exchange website and the company's website [89]

Company Information [Company Overview](index=3&type=section&id=Company%20Information) This section provides essential company details, including board members, committee compositions, authorized representatives, company secretary, auditors, legal advisors, and principal bankers - The company's Board of Directors comprises Executive Directors Ms. Zhou Wei and Mr. Qiao Yun, Non-executive Directors Mr. Xu Aoling and Mr. Li Wei, and Independent Non-executive Directors Mr. Zou Guoqiang, Mr. Fu Xinping, and Dr. Mao Zhenhua[3](index=3&type=chunk) - Mr. Zou Guoqiang chairs both the Audit Committee and the Remuneration Committee, while the Nomination Committee members include Ms. Zhou Wei, Mr. Zou Guoqiang, Mr. Fu Xinping, and Dr. Mao Zhenhua[3](index=3&type=chunk) Financial Highlights [Financial Highlights](index=5&type=section&id=Financial%20Highlights) For the six months ended June 30, 2024, the Group's revenue decreased by 15.9% year-on-year, while profit for the period and profit attributable to owners of the company significantly increased by 129.3% and 196.7% respectively, with no interim dividend recommended by the Board 2024 Interim Performance Summary (Compared to Previous Period) | Metric | 2024 Interim | 2023 Interim | Change | | :--- | :--- | :--- | :--- | | Revenue | 157,177,000 HKD | 186,813,000 HKD | -15.9% | | Gross Profit | 37,420,000 HKD | 43,718,000 HKD | -14.4% | | Gross Margin | 23.8% | 23.4% | +0.4pp | | Profit for the Period | 3,393,000 HKD | 1,480,000 HKD | +129.3% | | Profit Attributable to Owners of the Company | 3,468,000 HKD | 1,169,000 HKD | +196.7% | | Earnings Per Share | 0.2 HK cents | 0.07 HK cents | +185.7% | | Interim Dividend | Not Recommended | Zero | - | Management Discussion and Analysis [Industry Development](index=6&type=section&id=Industry%20Development) During the reporting period, Wuhan Port expanded its reach by developing river-sea intermodal and direct shipping routes, while Yangluo Port advanced green and smart port construction to enhance operational efficiency; increased maritime demand and freight rates due to the Red Sea incident are expected to stabilize for domestic shipping in the second half - Wuhan has opened direct shipping routes to Japan, South Korea, Russia, and Vietnam, reducing transport cycles and improving service quality[7](index=7&type=chunk) - In the first half of 2024, maritime demand exceeded expectations and freight rates significantly increased due to the Red Sea incident and other factors; domestic freight rates faced pressure in the first half but are expected to stabilize in the second half[7](index=7&type=chunk) [Business Review](index=7&type=section&id=Business%20Review) The Group's core business involves operating ports along the Yangtze River in Hubei Province and providing integrated logistics services; in the first half, the Group vigorously expanded new businesses like whole vehicle container transport, Macheng stone market, and steel product handling, while ensuring international direct shipping services, with synergistic development across Yangluo Port, Hannan Port, and Tongshang Supply Chain to consolidate and enhance the Group's logistics hub status in Central China - The Group vigorously expanded new cargo sources, completing **1,468 whole vehicles** (1,072 TEUs) for container loading in the first half and successfully developing a stable source of Macheng stone for export to South Korea[8](index=8&type=chunk) - The Wuhan-Japan/Korea/Russia international direct shipping route completed **16,000 TEUs** in the first half, with Yangluo Port providing priority and efficient loading/unloading services[9](index=9&type=chunk) [Wuhan Yangluo Port and General Port](index=8&type=section&id=Wuhan%20Yangluo%20Port%20and%20General%20Port) As the core port area of the Mid-Yangtze River shipping center, Wuhan Yangluo Port serves a vast hinterland covering multiple provinces and cities; its hub status was further enhanced by new regional and international routes and increased frequency, with container throughput growing by 12.3% year-on-year in 2023, and service scope and level improved through measures like gate inspection points and diversified empty container sources - In 2023, Yangluo Port opened its fourth international direct water transport route to Cai Mep Port, Vietnam, and increased the frequency of the "Wuhan-Japan/Korea/Russia" route, improving cargo turnover efficiency[11](index=11&type=chunk) - In 2023, Yangluo Port's container throughput reached **900,142 TEUs**, a **12.3% year-on-year increase**, with CFS stuffing and unstuffing volume growing by **10% year-on-year**[11](index=11&type=chunk) [Hannan Port](index=11&type=section&id=Hannan%20Port) Hannan Port is positioned as the most crucial logistics hub in southwestern Wuhan, primarily focusing on automotive logistics and trade; the Group aims to develop it into a modern, comprehensive logistics service base integrating supply chain design, multimodal transport, and logistics finance, leveraging synergies with Yangluo Port - Hannan Port will develop into a diversified business platform primarily focused on automotive logistics and trade, supplemented by general cargo and containers, forming synergistic effects with Yangluo Port[14](index=14&type=chunk)[15](index=15&type=chunk) [Hanjiang Logistics Center](index=12&type=section&id=Hanjiang%20Logistics%20Center) The Hanjiang Logistics Center comprises seven warehouses and an ancillary office building, which the Group plans to hold as investment properties to generate rental income - The Hanjiang Logistics Center is held by the Group and planned as an investment property to generate rental income[17](index=17&type=chunk) [Tongshang Supply Chain](index=13&type=section&id=Tongshang%20Supply%20Chain) Tongshang Supply Chain leverages the Group's port resources and client network, focusing on grains and agricultural products, offering integrated services including logistics, warehousing, distribution, and supply chain finance, aiming to establish a bulk grain commodity trading center centered around Yangluo Port - Tongshang Supply Chain aims to build a modern port-side supply chain system of "port trade + warehousing + logistics," creating a bulk grain commodity trading center with Yangluo Port at its core[20](index=20&type=chunk) [Operating Performance](index=14&type=section&id=Operating%20Performance) During the reporting period, the Group's total revenue decreased by 15.9% to **HKD 157.18 million**, primarily due to a **40.4% significant reduction** in supply chain management and trading business revenue; despite the revenue decline, profit attributable to owners of the company surged by **196.7% to HKD 3.47 million**, driven by a one-off gain from subsidiary disposal, reduced fair value loss on investment properties, and lower finance costs [Revenue](index=14&type=section&id=Revenue) Total revenue for the period was approximately **HKD 157 million**, a **15.9% year-on-year decrease**, primarily due to a **HKD 32.94 million significant reduction** in supply chain management and trading business revenue, while integrated logistics services and property business revenues increased Revenue Segment Details (For the Six Months Ended June 30) | Business Segment | 2024 (HKD '000) | Share | 2023 (HKD '000) | Share | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Terminal Services | 74,269 | 47.3% | 74,926 | 40.1% | -0.9% | | Integrated Logistics Services | 28,141 | 17.9% | 25,137 | 13.5% | +12.0% | | Supply Chain Management and Trading | 48,505 | 30.8% | 81,442 | 43.6% | -40.4% | | Property Business | 6,262 | 4.0% | 5,308 | 2.8% | +18.0% | | **Total** | **157,177** | **100.0%** | **186,813** | **100.0%** | **-15.9%** | [Terminal Services](index=15&type=section&id=Terminal%20Services) Wuhan Yangluo Port's container throughput for the period was **445,805 TEUs**, a **7.8% year-on-year decrease**, primarily due to a **20.8% decline** in transshipment container volume; however, local cargo container volume grew by **19.7%**, significantly increasing the Group's market share in the Yangluo Port area from **31.6% to 47.9%** Container Throughput (For the Six Months Ended June 30) | Type | 2024 (TEUs) | Share | 2023 (TEUs) | Share | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Local Cargo Containers | 186,336 | 41.8% | 155,732 | 32.2% | +19.7% | | Transshipment Containers | 259,469 | 58.2% | 327,536 | 67.8% | -20.8% | | **Total** | **445,805** | **100%** | **483,268** | **100.0%** | **-7.8%** | - The Group's market share in the Yangluo Port area increased from approximately **31.6%** in the previous period to approximately **47.9%** in the current period, primarily due to the increase in local container volume handled[24](index=24&type=chunk) [Gross Profit and Profit](index=17&type=section&id=Gross%20Profit%20and%20Profit) Gross profit for the period was **HKD 37.42 million**, a **14.4% year-on-year decrease**, though gross margin slightly increased to **23.8%**; other income surged by **175.0%** due to a gain from subsidiary disposal, and reduced fair value loss on investment properties combined with lower finance costs ultimately led to a **196.7% year-on-year increase** in profit attributable to owners of the company to **HKD 3.47 million** - Gross profit decreased to approximately **HKD 37.42 million**, but gross margin slightly increased to **23.8%** (previous period: 23.4%)[27](index=27&type=chunk) - Other income significantly increased by **175.0%** to approximately **HKD 8.13 million**, primarily due to a gain of approximately **HKD 4.90 million** from the disposal of an equity interest in a subsidiary[27](index=27&type=chunk) - Profit attributable to owners of the company significantly increased by **196.7%** to approximately **HKD 3.47 million**, primarily benefiting from reduced fair value loss on investment properties, a one-off gain from subsidiary disposal, and lower finance costs[29](index=29&type=chunk) Future Outlook [Future Outlook](index=19&type=section&id=Future%20Outlook) Facing global economic uncertainties, the Group will seize strategic opportunities from China's "14th Five-Year Plan" and "Belt and Road" initiatives, driven by "internal growth, smart reform, and pioneering innovation"; future plans include optimizing port operations, advancing smart and green port construction, expanding port logistics trade, and exploring the creation of a port-side grain trading and delivery platform to build a leading inland river port logistics system in China - The Group will adopt a "three-in-one" driven model of "internal growth," "smart reform," and "pioneering innovation" to build a port complex with superior services and stronger market expansion[30](index=30&type=chunk) - Regarding smart transformation, plans include operating remote-controlled gantry cranes and IGV unmanned container trucks to build a smart and green port[31](index=31&type=chunk) - Supply chain trading business will primarily focus on segmented grain categories, forming an integrated operation model of transport and trade, and exploring the creation of a port-side grain trading and delivery platform[31](index=31&type=chunk) Interim Financial Information [Financial Statements Overview](index=21&type=section&id=Financial%20Statements%20Overview) This section presents the unaudited condensed consolidated financial statements; the income statement shows profit for the period increased from HKD 1.48 million to HKD 3.39 million despite revenue decline; the statement of financial position as of June 30, 2024, indicates a net current liability position; and the cash flow statement reflects net cash outflow from operating activities, net inflow from investing activities due to subsidiary disposal, and net outflow from financing activities Condensed Consolidated Income Statement Summary (For the Six Months Ended June 30) | Metric (HKD '000) | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | 157,177 | 186,813 | | Gross Profit | 37,420 | 43,718 | | Profit from Operations | 11,882 | 9,095 | | Profit Before Tax | 5,489 | 260 | | Profit for the Period | 3,393 | 1,480 | | Profit Attributable to Owners of the Company | 3,468 | 1,169 | Condensed Consolidated Statement of Financial Position Summary (HKD '000) | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Non-current Assets | 1,168,889 | 1,208,189 | | Current Assets | 205,768 | 283,028 | | Current Liabilities | 342,875 | 384,421 | | **Net Current Liabilities** | **(137,107)** | **(101,393)** | | Net Assets | 814,880 | 864,757 | Condensed Consolidated Cash Flow Statement Summary (For the Six Months Ended June 30, HKD '000) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (7,063) | (10,514) | | Net Cash Generated From/(Used in) Investing Activities | 74,664 | (5,069) | | Net Cash Used in Financing Activities | (55,098) | (6,221) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 12,503 | (21,804) | [Summary of Notes to Financial Statements](index=28&type=section&id=Summary%20of%20Notes%20to%20Financial%20Statements) The notes to the financial statements provide detailed explanations of financial data; key points include the directors' assessment that the going concern basis is appropriate despite a net current liability of **HKD 137 million**, based on expected cash flows and controlling shareholder support; segment information shows terminal and related businesses as the primary profit contributors; and the Group completed the disposal of a 60% equity interest in Zhongxiang Zhongji Port Company for approximately **HKD 74.73 million** in cash, recording a gain of **HKD 4.90 million** - Going Concern Basis: Despite the Group's net current liabilities of approximately **HKD 137 million** as of June 30, 2024, the directors believe that, considering expected cash flows and the financial support commitment from the ultimate holding company, Hubei Port Group, preparing the financial statements on a going concern basis is appropriate[44](index=44&type=chunk) Segment Results (For the Six Months Ended June 30, HKD '000) | Segment | Revenue | Results | | :--- | :--- | :--- | | Property Business | 6,262 | 2,445 | | Terminal and Related Businesses | 87,895 | 13,060 | | Integrated Logistics Business | 28,180 | 1,731 | | Supply Chain Management and Trading Business | 48,505 | (1,784) | - On June 18, 2024, the Group completed the disposal of a **60% equity interest** in Zhongxiang Zhongji Port Company for a cash consideration of **RMB 69,576,900**, recording a gain on disposal of **HKD 4,901,000**, with net cash inflow of **HKD 74,721,000**[84](index=84&type=chunk)[85](index=85&type=chunk) Other Information [Shareholders and Shareholding Structure](index=57&type=section&id=Shareholders%20and%20Shareholding%20Structure) This section discloses the company's shareholding structure; as of June 30, 2024, Hubei Port (Hong Kong) International Co., Limited is the controlling shareholder, holding approximately **74.98%** of the company's shares; the company adopted a share option scheme in 2018, but no options have been granted since its adoption Major Shareholders' Shareholding (As of June 30, 2024) | Shareholder Name | Capacity | Number of Shares Held (Long Position) | Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Hubei Port (Hong Kong) International Co., Limited | Beneficial Owner | 1,293,429,911 | 74.98% | | Mr. Wang Kaiwei | Beneficial Owner | 99,140,600 | 5.75% | | Zall Holdings Co., Ltd. | Interest in Controlled Corporation | 86,428,000 | 5.01% | - The company adopted a share option scheme on May 25, 2018, with a 10-year validity period; no share options have been granted, exercised, lapsed, or cancelled since its adoption[103](index=103&type=chunk)[111](index=111&type=chunk) [Liquidity and Capital Management](index=62&type=section&id=Liquidity%20and%20Capital%20Management) The Group primarily meets its funding needs through internal resources, shareholder loans, and bank borrowings; as of June 30, 2024, the Group's total interest-bearing borrowings were approximately **HKD 317 million**, with a net gearing ratio of **0.3 times** and a current ratio of **0.6 times**, indicating a net current liability position Liquidity and Capital Indicators | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Interest-bearing Borrowings | Approx. 316,603,000 HKD | Approx. 375,434,000 HKD | | Cash and Cash Equivalents | Approx. 67,590,000 HKD | Approx. 56,648,000 HKD | | Net Gearing Ratio | 0.3 times | 0.4 times | | Net Current Liabilities | Approx. 137,107,000 HKD | Approx. 101,393,000 HKD | | Current Ratio | 0.6 times | 0.7 times | [Corporate Governance and Compliance](index=65&type=section&id=Corporate%20Governance%20and%20Compliance) The company complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period; the Audit Committee reviewed the interim results and confirmed the accounting principles and practices adopted by the Group - The company has complied with the provisions of the Corporate Governance Code for the six months ended June 30, 2024[125](index=125&type=chunk) - All directors confirmed compliance with the Model Code for Securities Transactions by Directors during the reporting period[126](index=126&type=chunk) - The Group's condensed consolidated results for the six months ended June 30, 2024, were not reviewed by external auditors but were reviewed by the Audit Committee[129](index=129&type=chunk)

Financial Performance - Revenue decreased by approximately 15.9% to about HKD 157,177,000 compared to HKD 186,813,000 in the previous period[2] - Gross profit decreased by approximately 14.4% to about HKD 37,420,000, with a slight increase in gross margin to 23.8% from 23.4% in the previous period[2] - Profit for the period increased by approximately 129.3% to about HKD 3,393,000, compared to HKD 1,480,000 in the previous period[2] - Profit attributable to owners of the company increased by approximately 196.7% to about HKD 3,468,000 from HKD 1,169,000 in the previous period[2] - Basic earnings per share attributable to owners of the company was approximately HKD 0.2 cents, up from HKD 0.07 cents in the previous period[4] - The group reported a profit before tax of HKD 5,489 thousand for the six months ended June 30, 2024, compared to HKD 260 thousand for the same period in 2023, indicating a significant increase in profitability[15][17] - The company's profit before tax for the six months ended June 30, 2024, was HKD 3,468,000, compared to HKD 1,169,000 for the same period in 2023, representing a significant increase[25] - Other income increased by approximately 175.0% to about HKD 8,128,000, mainly due to a gain of approximately HKD 4,901,000 from the sale of a subsidiary's equity[55] Assets and Liabilities - Total assets decreased to HKD 1,168,889,000 from HKD 1,208,189,000 as of December 31, 2023[5] - Non-current assets decreased to HKD 1,031,782,000 from HKD 1,106,796,000 as of December 31, 2023[8] - The company reported a net asset value of HKD 814,880,000, down from HKD 864,757,000[8] - The net current liabilities of the group as of June 30, 2024, amount to approximately HKD 137 million, raising concerns about the group's ability to continue as a going concern[11] - The company's total liabilities decreased to HKD 114,022,000 as of June 30, 2024, from HKD 110,210,000 at the end of 2023, a reduction of about 3.3%[32] - The group had total outstanding interest-bearing borrowings of approximately HKD 316,603,000 as of June 30, 2024, down from approximately HKD 375,434,000 as of December 31, 2023[62] - The group’s current liabilities net amount was approximately HKD 137,107,000 as of June 30, 2024, compared to approximately HKD 101,393,000 as of December 31, 2023[62] Cash Flow and Financing - Cash and cash equivalents increased to HKD 67,590,000 from HKD 56,648,000[5] - Interest expenses for the six months ended June 30, 2024, totaled HKD 6,393 thousand, a decrease from HKD 8,204 thousand in the same period of 2023, reflecting a reduction in financing costs[20] - The group expects to generate sufficient cash flow over the next twelve months, supported by financial backing from Hubei Port Group[11] Dividends and Shareholder Returns - The board of directors did not recommend the payment of an interim dividend for the period, compared to zero in the previous period[2] - The company did not declare any dividends for the six months ended June 30, 2024, consistent with the previous year[27] - No interim dividend declared for the six months ending June 30, 2024 (previous period: none)[71] Operational Highlights - In the first half of 2024, the company handled a total cargo throughput of 8.56 billion tons, representing a year-on-year growth of 4.6%, with container throughput increasing by 8.5% to 16.2 million TEUs[41] - The company has introduced a new full-container transportation service, successfully completing the loading of 1,468 vehicles, totaling 1,072 TEUs, in the first half of 2024[41] - The company has established a new direct shipping route from Wuhan to Ho Chi Minh City, Vietnam, enhancing its logistics capabilities and service quality[39] - The company is actively developing new markets, including the stone material market in Macheng, which has led to a stable weekly export source to Busan, South Korea[41] - The company has achieved a collaboration with local steel companies, resulting in the completion of 62 bulk carrier operations, with a total cargo handling volume of 101,300 tons in the first half of 2024[41] - The company has implemented new technologies to enhance operational efficiency, including the use of remote control systems for gantry cranes and green energy vehicles[39] Market and Competitive Position - The market share of Yangluo Port increased to approximately 47.9% during the period, up from 31.6% in the previous period, primarily due to an increase in local container volume[51] - Revenue from comprehensive logistics services rose to approximately HKD 28,141,000, accounting for about 17.9% of total revenue, compared to 13.5% in the previous period[52] - Property business revenue increased to approximately HKD 6,262,000, representing 4.0% of total revenue, up from 2.8% in the previous period[53] Future Outlook - The company anticipates that the shipping rates will stabilize in the second half of 2024, driven by the traditional peak season for domestic trade and rising external trade rates[39] - The group aims to enhance operational efficiency through smart port innovations and the integration of logistics services, focusing on a comprehensive port logistics system[59] - The group plans to expand its capital operations to drive financial value creation and mitigate investment risks[59] Compliance and Governance - The company has complied with the corporate governance code as per the listing rules for the six months ending June 30, 2024[73] - The company has adopted the standard code for securities transactions by directors, confirming compliance during the six months ending June 30, 2024[74] - The audit committee has reviewed the company's financial reporting, internal controls, and risk management systems for the six months ending June 30, 2024[76]