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]

Corporate Governance - The Nomination Committee held two meetings in the year ending December 31, 2023, to review the board's structure, size, composition, and the effectiveness of the diversity policy[2]. - The board has delegated corporate governance responsibilities to the Audit Committee, which includes reviewing and monitoring compliance with legal and regulatory requirements[3]. - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with the standards set forth in the listing rules[8]. - All directors confirmed compliance with the code of conduct and relevant regulations during the year ending December 31, 2023[8]. - The board has established procedures for directors to seek independent professional advice at the company's expense[9]. - The company has provided all directors with training on their responsibilities and relevant regulations, ensuring they are aware of good corporate governance practices[9]. - The independent non-executive directors attended all meetings, demonstrating strong engagement in corporate governance[6]. - The board diversity policy is in place to ensure a balanced composition in terms of skills, experience, and perspectives, with annual discussions on measurable diversity goals[20]. - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with all relevant provisions as of December 31, 2023[132]. - The board is committed to maintaining high standards of corporate governance and accountability, ensuring transparency in operations[155]. - The company has a whistleblowing policy to encourage reporting of concerns related to operations, ensuring independent opinions are considered[161]. - The nomination committee is chaired by the board chairman, with a majority of independent non-executive directors, to assess the effectiveness of governance mechanisms[162]. - The company emphasizes the importance of independent opinions and has conducted annual reviews of its governance mechanisms to ensure effectiveness[162]. - The company has established appropriate insurance to protect its directors and senior officers against potential liabilities arising from company activities[167]. - The company has a clear division of roles between the chairman and the CEO to enhance independence and ensure checks and balances[167]. - The company has a policy for the re-election of directors, ensuring that at least one-third of the board retires at each annual general meeting[183]. Financial Performance - For the year ended December 31, 2023, the group's revenue was HKD 361,301,000, an increase of approximately 13.1% compared to HKD 319,535,000 in 2022[53]. - The revenue from terminal and related businesses grew by 15.0% to HKD 152,042,000, primarily due to increased container throughput at Yangluo Port[53]. - Supply chain management and trading business revenue surged by 34.9% to HKD 158,281,000, accounting for approximately 43.8% of total revenue[65]. - The gross profit decreased by 9.0% to HKD 77,653,000, with a gross profit margin of 21.5%, down from 26.7% in 2022[66]. - The profit attributable to the company's owners decreased by HKD 5,415,000 or approximately 26.1% to HKD 15,360,000 for the year ended December 31, 2023, compared to HKD 20,775,000 in 2022[77]. - The basic and diluted earnings per share attributable to the company's owners were HKD 0.89, a decrease of 25.8% from HKD 1.20 in the previous year[77]. - Other income increased by approximately 305.0% to HKD 22,117,000 for the year ended December 31, 2023, compared to HKD 6,201,000 in 2022[79]. - The group recorded a fair value loss on investment properties of HKD 993,000, compared to a fair value gain of HKD 25,785,000 in 2022[68]. - The net asset value of the group as of December 31, 2023, was HKD 864,757,000, down from HKD 881,566,000 in 2022[107]. - The total outstanding interest-bearing borrowings of the group as of December 31, 2023, amounted to HKD 375,434,000, a decrease from HKD 427,293,000 in 2022[107]. Operational Performance - The container throughput reached 900,142 TEUs, representing a year-on-year increase of 12.3%[35]. - CFS dismantling and assembly business significantly grew, completing 18,661 TEUs, up 10% from the previous year[35]. - The overall cargo throughput of inland ports in China reached 3.8 billion tons, a year-on-year increase of 14.2%[39]. - Revenue from container handling, storage, and other services increased by 46.4% to HKD 37,161,000 from HKD 25,384,000[49]. - The comprehensive logistics services revenue decreased by 37.4% to HKD 38,230,000 from HKD 61,067,000[49]. - The total throughput at Yangluo Port increased by about 12.3% to 900,142 TEUs, with local cargo throughput decreasing by 4.8% and transshipment cargo increasing by 24.7%[61]. - The rental income from warehouses and yards at Wuhan Hannan Port increased by 43.2% to HKD 12,748,000, representing about 3.5% of total revenue[65]. - The company aims to build a comprehensive port logistics system, focusing on core industries such as port construction and operation, port and warehouse leasing, and logistics services[28]. - The company is expanding its integrated service system to include comprehensive port processing trade and infrastructure investment, aiming to create the largest inland port logistics system in China[28]. - The company aims to develop Hannan Port into a multi-business platform, enhancing logistics services and creating synergies with Wuhan Yangluo Port[43]. Risk Management - The internal control and risk management systems have been confirmed as effective and sufficient, with no significant failures reported, ensuring compliance with relevant laws and regulations[18]. - The group faces significant cash flow risks if it encounters difficulties in collecting receivables, which could adversely impact its financial condition[102]. - The competitive landscape in the supply chain management industry is intense and fragmented, potentially affecting the group's ability to attract and retain customers[101]. - The group is exposed to operational risks, including delays in the completion of development and construction projects[116]. - The group may face inventory accumulation risks if customers cancel orders, which could negatively impact its financial status[120]. - The group has significant investments in properties, including port and warehouse facilities, which are influenced by the economic performance of Hubei Province[100]. Human Resources - The company employed 357 full-time staff as of December 31, 2023, down from 369 in 2022, maintaining good labor relations[91]. - The group aims to enhance employee skills and knowledge through targeted training and development programs[111]. - The group is at risk of not being able to attract and retain key employees due to talent competition in its operational regions[115]. Strategic Initiatives - The company is focused on a three-pronged growth strategy: "internal-driven growth," "smart reform," and "innovation," to enhance service quality and market expansion[28]. - The company plans to further invest in the Wuhan area to enhance its port business, leveraging its strategic location along the Yangtze River[36]. - The introduction of new business in pebble-to-container conversion is expected to generate an additional annual income of nearly RMB 500,000[35]. Board and Management - The board consists of seven members responsible for formulating business strategies and monitoring the group's performance[158]. - The management team is dedicated to enhancing corporate value and accountability to protect shareholder interests[156]. - The company appointed Mr. Zou Guoqiang as an independent non-executive director in May 2022, with extensive experience in financial management and corporate governance[125]. - Mr. Fu Xinping has been an independent non-executive director since May 2022, and is a professor at Wuhan University of Technology, contributing expertise in transportation management[127]. - The company appointed Mr. Qiao Yun as the General Manager since May 2022, who has extensive experience in logistics services[144]. - Mr. Xu Ao Ling has been serving as a non-executive director since May 2022 and has been involved in financial management within the Hubei Port Group since 2021[144]. Audit and Remuneration - The remuneration committee held three meetings during the year to review the company's remuneration policies, including the compensation structure for directors and senior management[169]. - The audit committee conducted three meetings during the year, reviewing interim and annual performance, risk management reports, and internal control systems[188]. - The company has adopted a whistleblowing policy allowing employees to report misconduct or malpractice confidentially to the audit committee[173]. - The company has appointed an independent professional firm to conduct internal audits of its internal control systems[188]. - The remuneration committee's responsibilities include assisting in the formulation of transparent remuneration policies and ensuring no director participates in determining their own remuneration[186].

Revenue and Profitability - Revenue increased by approximately 13.1% to HKD 361,301,000 (2022: HKD 319,535,000) [1] - Profit for the year decreased by approximately 34.1% to HKD 13,788,000 (2022: HKD 20,913,000) [1] - Profit attributable to owners of the company decreased by 26.1% to HKD 15,360,000 (2022: HKD 20,775,000) [1] - The company reported a total comprehensive income of HKD 22,117,000 for the year [25] - The total comprehensive income for the year ended December 31, 2023, was a loss of 13,983 thousand HKD, compared to a loss of 62,685 thousand HKD in 2022 [137] - The company’s net assets amounted to HKD 864,757,000, a decrease from HKD 881,566,000 in the previous year, reflecting a decline of approximately 1.9% [178] - The company’s diluted earnings per share for the year were calculated based on the reported financial data, reflecting the overall performance of the business [197] Gross Profit and Margins - Gross profit decreased by 9.0% to HKD 77,653,000 (2022: HKD 85,371,000), with a gross margin of 21.5% (2022: 26.7%) [1] - Gross profit decreased by 9.0% to HKD 77,653,000 in 2023, down from HKD 85,371,000 in 2022, resulting in a gross margin of 21.5% compared to 26.7% in the previous year [73] - The fair value loss on investment properties for the year was HKD 993,000, a significant decline from a fair value gain of HKD 25,785,000 in 2022 [74] Cash Flow and Liabilities - The company recorded a net cash flow sufficient to continue operations for the next twelve months [12] - The net current liabilities of the group were approximately HKD 101.4 million as of December 31, 2023 [38] - As of December 31, 2023, the net current liabilities decreased to HKD 100,526,000 from HKD 239,082,000 in 2022, with current assets increasing to HKD 283,028,000 from HKD 200,515,000 [77] - The total outstanding interest-bearing borrowings amounted to HKD 375,434,000 as of December 31, 2023, down from HKD 427,293,000 in 2022 [106] - The company’s total liabilities were HKD 384,421,000, compared to HKD 439,597,000 in the previous year, showing a reduction of about 12.6% [178] Dividends - The board does not recommend the payment of a final dividend for the year ended December 31, 2023 (2022: Nil) [1] - The company does not recommend the payment of dividends for the year ended December 31, 2023, consistent with the previous year [54] Operational Performance - Operating profit for the year was HKD 39,244,000 (2022: HKD 54,366,000) [6] - The total throughput at Wuhan Yangluo Port increased by approximately 12.3% to 900,142 TEUs in 2023, compared to 801,537 TEUs in 2022 [69] - The total container throughput at Wuhan Port for the year 2023 was 2,790,000 TEUs, an increase from 2,700,000 TEUs in 2022, with a market share of approximately 32% in the region [70] - Comprehensive logistics service revenue decreased by 37.4% to HKD 38,230,000 for the year ended December 31, 2023, accounting for approximately 10.6% of total revenue [100] Strategic Initiatives - The company is actively seeking opportunities related to the construction of the Hannan Bridge and surrounding logistics services to enhance economic benefits [65] - The company aims to establish a bulk grain trade distribution center centered in Wuhan, enhancing its supply chain management and trade services [67] - The company plans to enhance capital operations to drive financial value creation and mitigate investment risks, focusing on a supply chain trade model centered around grain categories [81] - The company is exploring the integration of water transport with logistics industries, including the development of a port-based grain trade delivery platform [81] - The company plans to develop Shipaigang into a mixed-use port area covering approximately 25 square kilometers, enhancing geographical coverage and creating synergies between ports [95] Other Income and Expenses - Other income increased by approximately 305.0% to HKD 22,117,000, driven by government grants, sale of subsidiary interests, and foreign exchange gains [103] - The company recognized government grants primarily related to operational and development activities, which are unconditional or have conditions that have been met [167] Taxation - The company did not recognize any provision for Hong Kong profits tax due to tax losses [26] - The effective corporate tax rate for the company’s subsidiaries in China remains at 25% [168]

Revenue and Profitability - Revenue increased by approximately 43.8% to HKD 186,810,000 for the six months ended June 30, 2023, compared to HKD 129,920,000 for the same period in 2022[11]. - The company reported a net profit attributable to shareholders of HKD 1,169,000 for the six months ended June 30, 2023, down from HKD 23,641,000 in the same period last year[15]. - The company’s basic and diluted earnings per share decreased to HKD 0.07 from HKD 1.37 in the previous year[15]. - Profit for the period decreased by approximately 93.5% to HKD 1,480,000 (compared to HKD 22,750,000 in the same period of 2022) due to various offsetting factors[38]. - Profit attributable to the owners of the company decreased by 95.1% to HKD 1,170,000 (compared to HKD 23,640,000 in the same period of 2022)[38]. - The gross profit for the six months ended June 30, 2023, was HKD 43,720,000, a decrease of HKD 4,440,000 from HKD 48,160,000 in the same period of 2022, resulting in a gross margin decline to 23.4% from 37.1%[61]. Operational Performance - Overall container throughput at Wuhan Yangluo Port increased by approximately 45.6% to 483,268 TEUs, up from 331,890 TEUs in the same period last year[11]. - The local cargo container volume increased by approximately 3%, while transshipment containers surged by approximately 81.2% due to the introduction of new transit routes[58]. - The market share of the Group's container throughput in Wuhan increased from 29.0% as of December 31, 2022, to 31.6% as of June 30, 2023, primarily due to an increase in transshipment container volume handled by the Group[38]. - The Group has been developing port-related services, including agency and integrated logistics services, to broaden revenue sources[46]. - The Group's operational efficiency improvements led to a reduction in general, administrative, and other operating expenses (excluding depreciation and amortization) by HKD 3,900,000 during the period[38]. Strategic Developments - New shipping routes were established, including direct water transport to Russia and several regional routes, enhancing the turnover efficiency of goods in Hubei province[20]. - The company plans further investments in the Wuhan area to capitalize on its strategic importance in the Yangtze River Economic Belt[22]. - The company aims to optimize port logistics resources through the integration of Yangluo Port phases one, two, and three, enhancing synergy in port operations[21]. - Hannan Port is being developed into a multi-business platform, providing terminal, warehousing, and logistics services, including roll-on/roll-off and bulk cargo transportation[50]. - The company aims to establish a bulk grain trading distribution center centered in Wuhan, leveraging its extensive experience in managing multiple ports and a solid network of customers and suppliers[66]. Financial Position - The total assets of the group amounted to HKD 1,541,193,000, with liabilities totaling HKD 700,166,000, resulting in a net asset position of HKD 841,027,000[80]. - The group reported a fair value change of investment properties of HKD (6,893) thousand for the six months ended June 30, 2023, compared to a gain of HKD 25,785 thousand for the previous year[112]. - The company reported a net asset value of HKD 841,027,000 as of June 30, 2023, down from HKD 881,566,000 at the end of 2022[168]. - The group’s total liabilities increased from HKD 168,758 thousand to HKD 157,694 thousand, indicating a shift in financial obligations[118]. - The company expects to generate sufficient cash flow over the next twelve months to support its operations and meet financial obligations[105]. Future Outlook - The group’s future outlook includes plans for market expansion and potential acquisitions to enhance service offerings and operational efficiency[72]. - The company maintains an optimistic outlook for the future of its port business in Wuhan, supported by favorable government policies[188]. - The company aims to enhance its service quality and market expansion through a three-pronged approach focusing on internal growth, smart reforms, and innovation[187]. - The company plans to gradually improve capital operations to drive financial value creation and mitigate investment risks[200]. Challenges and Risks - The average exchange rate depreciation of the Renminbi impacted terminal revenue, which decreased by approximately HKD 1,280,000 despite local cargo container and average rates increasing[11]. - Other income decreased by 51.5% to HKD 2,820,000, down from HKD 5,820,000 in the same period of 2022, mainly due to a reduction in government grants received by certain subsidiaries[62]. - The group reported a loss of HKD 3,986,000 in the logistics segment, while the integrated logistics segment generated a profit of HKD 12,306,000[79]. - The company reported a significant increase in overdue receivables over 90 days, rising from HKD 21,194 thousand to HKD 38,350 thousand, an increase of approximately 80.9%[117].

Financial Performance - Total revenue for the six months ended June 30, 2023, was HKD 186,813,000, representing a 43.8% increase from HKD 129,924,000 for the same period in 2022[16]. - Revenue from supply chain management and trading business surged to HKD 81,442,000, a 222.0% increase from HKD 25,293,000 in the previous year[15]. - The group’s comprehensive logistics services revenue decreased to HKD 25,140,000, accounting for approximately 13.5% of total revenue, down from 22.5% in the previous year[21]. - Property business revenue increased to HKD 5,310,000, representing 2.8% of total revenue, compared to 3.5% in the previous year[22]. - The company's earnings per share attributable to shareholders for the six months ended June 30, 2023, was 0.07 HKD, a significant decrease from 1.37 HKD in the same period of 2022[45]. - The company's profit attributable to owners decreased by 95.1% to HKD 1,170,000 (previous period: HKD 23,640,000)[139]. - Gross profit decreased by 9.2% to HKD 43,720,000 (previous period: HKD 48,160,000), with a gross margin dropping to 23.4% (previous period: 37.1%)[143]. - The group reported a loss attributable to shareholders of 3.99 million HKD in the property business segment for the six months ended June 30, 2023[63]. - The group recorded a fair value loss of HKD 6,890,000 on investment properties for the six months ended June 30, 2023, compared to a fair value gain of HKD 28,840,000 in the same period of 2022[194]. Operational Highlights - The number of transshipment containers handled rose significantly by 81.2% to 327,536 TEUs, compared to 180,756 TEUs in the same period last year[18]. - Container throughput at Wuhan Yangluo Port increased by approximately 45.6% to 483,268 TEUs, up from 331,890 TEUs in the same period last year[175]. - The market share of the group in the Yangluo Port area increased from 29.0% as of December 31, 2022, to 31.6% as of June 30, 2023, primarily due to an increase in transshipment container volume[190]. - The logistics business segment generated revenue of 81.44 million HKD, contributing significantly to the overall revenue growth[63]. - The group has developed comprehensive logistics services, including bonded warehousing, customs clearance, and distribution at Wuhan Yangluo Port[154]. - The company is focused on establishing a bulk grain trade distribution center centered in Wuhan, leveraging its supply chain management capabilities[160]. - The group aims to gradually improve port operation efficiency through the integration of smart port innovations and multi-modal transport development[46]. Cash Flow and Financial Position - Cash and cash equivalents decreased by HKD 21,804,000 during the period, compared to an increase of HKD 160,055,000 in the previous year[35]. - The group’s operating cash flow showed a net outflow of HKD 10,514,000, contrasting with a net inflow of HKD 3,744,000 in the same period last year[35]. - Cash and cash equivalents totaled HKD 61,710,000 as of June 30, 2023, compared to HKD 86,300,000 as of December 31, 2022, indicating a decrease of 28.5%[84]. - The net asset value as of June 30, 2023, was 841.03 million HKD, down from 881.57 million HKD as of the same date in 2022[53]. - The total equity of the group as of June 30, 2023, was HKD 841,030,000 (previous period: HKD 881,570,000)[128]. - The group reported a net current liability of HKD 216,270,000 as of June 30, 2023, compared to HKD 239,080,000 as of December 31, 2022[112]. - The group had total outstanding interest-bearing borrowings of HKD 413,260,000 as of June 30, 2023, down from HKD 427,290,000 as of December 31, 2022[84]. - The net capital debt ratio as of June 30, 2023, was 0.5 times (previous period: 0.4 times)[123]. Strategic Initiatives - The group plans to further invest in the Wuhan area to enhance its port business, aligning with the development of the Yangtze River Economic Belt[10]. - The group aims to optimize green and smart development of ports, contributing to the construction of a modern high-quality national comprehensive transportation network[26]. - The company plans to leverage the construction of the Hannan Bridge to enhance logistics services and create a distribution center for imported goods[184]. - The company aims to develop Shipaiko Port into a mixed-use port area, covering approximately 25 square kilometers, to expand its geographical reach[185]. - The company will continue to seek suitable opportunities for investment or acquisition of significant capital assets to enhance its operational profitability[130]. - The group is focusing on the development of new products and technologies to expand its market presence and enhance operational capabilities[46]. Governance and Compliance - The company has maintained compliance with corporate governance codes and standards during the reporting period[133]. - The group has appointed a new auditor, Guo Fu Hao Hua (Hong Kong) CPA Limited, following the resignation of its previous auditor after 15 years[177].

Financial Performance - The revenue from discontinued operations for the year ended December 31, 2021, was HKD 7,320,000, derived from the sale of Zhongji Tongshang Engineering[1]. - As of December 31, 2022, the group's net capital debt ratio was 0.4 times, consistent with the previous year[4]. - The company reported a total of 30 administrative and personnel expenses, maintaining consistency in operational costs[10]. - The company allows shareholders to choose between cash or stock dividends, enhancing shareholder value[60]. Governance and Management - The board of directors regularly reviews the group's overall strategy and operational and financial performance, ensuring they are informed of the latest business and financial conditions[21]. - The company has appointed two executive directors, two non-executive directors, and three independent non-executive directors as of the report date[11]. - The audit committee monitors the relationship with independent auditors and reviews the group's half-yearly and annual performance, ensuring effective risk management and internal controls[27]. - The company has a nomination committee responsible for reviewing the board's structure and composition annually, ensuring alignment with corporate strategy[28]. - The board held a total of 6 meetings during the year, with the chairman attending all meetings[49]. - The audit committee conducted 4 meetings to review financial performance, risk management reports, and internal control systems[44]. - The board confirmed that the internal control and risk management systems are effective and sufficient, with no significant deficiencies reported[55]. - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with the highest standards[50]. - The board has the final decision-making authority on all matters related to candidates recommended for shareholder meetings[41]. - The company has established a policy for corporate governance, which is reviewed regularly to ensure compliance[32]. - The board is responsible for maintaining a robust internal control and risk management system to protect the group's assets and shareholders' interests[37]. - The company has a commitment to corporate governance practices, ensuring that all directors are aware of their responsibilities and relevant regulations[51]. - The board has adopted a diversity policy to ensure appropriate balance in skills, experience, and perspectives among board members[56]. Risk Management and Compliance - The company faces operational risks including equipment failures, labor disputes, adverse weather, and reliance on third-party transportation services, which could disrupt operations and lead to revenue losses[9]. - The company engaged an independent professional firm for risk management and internal control assessments, ensuring the effectiveness of the internal control system[54]. - The company is committed to enhancing its risk management and internal control systems based on recommendations from independent assessments[54]. - The group actively monitors compliance with climate-related regulations to mitigate financial and reputational risks[151]. - The company has established internal policies to ensure compliance with labor laws and to provide a supportive and inclusive work environment for its 369 employees, with a gender ratio of approximately 78% male and 22% female[138]. - The company has maintained strict anti-corruption policies, with no convictions or disciplinary actions related to corruption reported during the period[192]. Environmental, Social, and Governance (ESG) Initiatives - The group has established an ESG framework to manage environmental, social, and governance risks effectively[74]. - The company emphasizes high transparency and timely information for shareholders and investors to make informed investment decisions[64]. - The company is committed to enhancing its ESG reporting system to improve data collection and reporting quality over time[92]. - The company actively manages its environmental and social impacts to enhance sustainability and transparency[98]. - The company has implemented environmental management goals to monitor progress in environmental protection efforts[84]. - The company is focused on integrating environmental considerations into core business operations to minimize pollution[84]. - The company has implemented various energy-saving measures, including strict temperature controls for air conditioning and encouraging the use of video conferencing[125][127]. - The company has implemented various water-saving measures, including the use of wet and dry cleaning machines and high-pressure faucets, to cultivate water-saving awareness among employees[129]. - The company has committed to green development practices and exploring innovative ways to reduce environmental impact[130]. - The company has prioritized suppliers with sustainable development practices to mitigate potential environmental and social risks in the supply chain[163]. Employee Engagement and Development - The company emphasizes the importance of employee training and development to achieve business goals and enhance skills[142]. - The company has established a comprehensive employee handbook and management systems to ensure fair treatment and a balanced work-life environment[134]. - The company has implemented health and safety measures, including regular disinfection of workplaces and encouraging vaccination among employees[140]. - The company encourages employee participation in social welfare activities, reflecting its commitment to corporate social responsibility[170]. - The total number of employees decreased from 389 in the previous year to 369 in 2022, representing a reduction of approximately 5.14%[200]. - The employee turnover rate improved significantly from 12.34% in 2021 to 6.50% in 2022, indicating better employee retention[200]. - 40% of employees received training during the reporting period, with an average training time of 2.7 hours per employee[161]. Sustainability Metrics - Total greenhouse gas emissions amounted to 5,425.86 tons of CO2 equivalent, with a density of approximately 14.70 tons of CO2 equivalent per employee[108]. - Direct greenhouse gas emissions (Scope 1) were approximately 1,939.54 tons of CO2 equivalent, with a density of 5.26 tons of CO2 equivalent per employee[121]. - Indirect greenhouse gas emissions (Scope 2) were approximately 3,458.09 tons of CO2 equivalent, with a density of 9.37 tons of CO2 equivalent per employee[121]. - Total energy consumption was 11,819.55 thousand kWh, with a density of 32.03 thousand kWh per employee, representing an increase of about 25% from the previous year[114][124]. - Water consumption in 2022 was reported at 39,319.00 cubic meters, a decrease from 43,643.84 cubic meters in 2021, representing a decline of about 10%[174]. - The total amount of non-hazardous waste generated in 2022 was 1.55 tons, a significant reduction from 2.99 tons in 2021, indicating a decrease of approximately 48.2%[174]. - The company has implemented strict safety measures and training programs, resulting in zero work-related fatalities over the past four years[180].

Revenue and Profitability - The group's revenue increased by approximately 29.0% to HKD 319,540,000 for the year ended December 31, 2022, compared to HKD 247,670,000 in 2021[6] - Gross profit rose by 57.2% to HKD 85,370,000, with a gross profit margin of 26.7%, compared to 21.9% in 2021[6] - The annual profit decreased by approximately 17.0% to HKD 20,910,000 (2021: HKD 25,180,000) due to various factors including a reduction in other income by HKD 23,820,000 and a decrease in general and administrative expenses by HKD 38,960,000[21] - Profit attributable to the owners of the company decreased by 25.9% to HKD 20,780,000 (2021: HKD 28,040,000)[22] - The total comprehensive income for the year 2022 was a loss of HKD 62,685,000, compared to a gain of HKD 62,843,000 in 2021[105] - The company reported a net loss from continuing operations of HKD 6,201,000 for 2022, down from a profit of HKD 30,025,000 in 2021, indicating a significant decrease in profitability[148] Container Throughput and Operations - The overall container throughput at Wuhan Yangluo Port increased by about 11.3% to 801,537 TEUs, up from 720,021 TEUs in 2021[6] - The total container throughput of Wuhan Yangluo Port for the year ended December 31, 2022, was 801,537 TEUs, an increase of 81,516 TEUs or approximately 11.3% compared to 720,021 TEUs for the year ended December 31, 2021[65] - Local cargo throughput increased by approximately 18.2% to 337,042 TEUs, while transshipment cargo throughput increased by approximately 6.8% to 464,495 TEUs[66] - The container throughput at Yangluo Port increased, contributing to an increase in revenue from terminal services by HKD 20,610,000[64] Supply Chain Management and Trading - Revenue from supply chain management and trading significantly increased by HKD 49,180,000 due to the launch of rice and broken rice trading operations starting September 2022[6] - Revenue from supply chain management and trading business increased to HKD 117,320,000, accounting for approximately 36.7% of total revenue, up from 27.5% in the previous year[71] - The supply chain management and trading business accounted for HKD 71,598,000 or 22% of total revenue, with a single customer contributing more than 10% of the revenue for the first time[156] Financial Position and Liabilities - The total current liabilities decreased to HKD 239,080,000 from HKD 292,830,000 in the previous year, with current assets increasing to HKD 200,520,000 from HKD 150,080,000[82] - As of December 31, 2022, the total outstanding interest-bearing borrowings amounted to HKD 427,290,000, an increase from HKD 350,980,000 in 2021[99] - The company’s total liabilities decreased from HKD 734,782,000 in 2021 to HKD 734,782,000 in 2022, remaining stable year-over-year[144] - The total liabilities decreased to HKD 159,190,000 from HKD 185,817,000, a reduction of 14.4%[192] Trading Suspension and Resumption - The company’s shares were suspended from trading on March 28, 2022, due to failure to meet the minimum public float requirement[10] - The company received a letter from the stock exchange on June 28, 2022, outlining the requirements for resuming trading, including meeting the minimum public float of 25%[11] - The company applied to resume trading on the stock exchange starting from October 3, 2022, after fulfilling the resumption guidance[12] - The company is responsible for formulating a resumption action plan to address the trading suspension issues before the deadline of September 27, 2023[11] Strategic Developments - The company has been developing port-related services, including bonded warehouses and logistics services, to diversify revenue sources[17] - Wuhan Yangluo Port has established new shipping routes, including direct container shipping lines to Japan and South Korea, enhancing its position as a key transshipment hub[16] - The company is focused on strategic measures to promote waterway transshipment to Shanghai and direct shipping to Japan, South Korea, and Russia[16] - The company plans to invest further in the Wuhan area to capitalize on the strategic importance of the Yangtze River Economic Belt[32] - The company aims to create synergies between Yangluo Port and HanNan Port to provide more cost-effective solutions for customers[59] Employee Compensation and Remuneration - The total remuneration paid to employees for the year reached HKD 52,260,000, down from HKD 76,690,000 in 2021[2] - The company’s board has designated a remuneration committee to review and determine the compensation of directors and senior management[2] Cash Flow and Investments - The net cash inflow from operating activities for the year ended December 31, 2022, was HKD 16,330,000, compared to HKD 17,990,000 in the previous year[81] - The company’s cash and cash equivalents increased to HKD 86,298,000 in 2022 from HKD 31,127,000 in 2021, showing a growth of approximately 177%[126] - The company reported a total investment property value of HKD 851,229,000 as of December 31, 2022, compared to HKD 895,932,000 the previous year, a decrease of 5.0%[187] Taxation and Government Grants - The company has ceased to enjoy tax incentives, with a corporate tax rate of 25% applicable from January 1, 2023[151] - The company’s government grants received decreased significantly from HKD 26,440,000 in 2021 to HKD 4,181,000 in 2022, a drop of approximately 84%[148]