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]

Revenue Performance - Revenue increased by approximately 6.1% to HKD 129,920,000 for the six months ended June 30, 2022, compared to HKD 122,510,000 for the same period in 2021[12]. - The increase in revenue was primarily due to the completion of the acquisition of controlling interest in Hubei Port (Hong Kong) International Limited, leading to an increase in standard rates for local cargo and transshipment containers, contributing an additional HKD 11,140,000 to the terminal services revenue[12]. - The integrated logistics services revenue increased by HKD 8,640,000 due to the growth in business volume at Wuhan Yangluo Port[12]. - Revenue from bulk cargo handling services decreased by HKD 4,420,000 due to reduced contributions from Hannan Port and Shipai Port[12]. - Supply chain management and trading business revenue decreased by HKD 7,830,000 due to reduced contributions from cement trading operations for the six months ended June 30, 2022[12]. - The group's revenue for the six months ended June 30, 2022, was HKD 129,920,000, an increase of HKD 7,410,000 or approximately 6.1% compared to HKD 122,510,000 in the same period of 2021[55]. - The increase in revenue was primarily due to the integration of Yangluo Port's phases one, two, and three after the acquisition of Hubei Port in January 2022, leading to an increase in standard rates for local and transshipment containers, resulting in an increase of HKD 11,140,000 in terminal services revenue[55]. - Terminal services accounted for 42.8% of total revenue, with HKD 55,677,000 reported, up 25.0% from HKD 44,537,000 in the previous year[52]. Profitability - Gross profit increased by 15.9% to HKD 48,160,000, with a gross profit margin rising to 37.1% from 33.9% in the previous year[14]. - The net profit attributable to the company's owners increased by 72.0% to HKD 23,640,000, compared to HKD 13,740,000 in the same period last year[18]. - The company reported a net profit increase of approximately 89.3% to HKD 22,750,000 for the six months ending June 30, 2022, driven by various factors including increased government grants and reduced operating expenses[16]. - The company’s earnings per share increased to HKD 1.37 from HKD 0.80 in the previous year[18]. - The company’s earnings per share for continuing operations was HKD 1.37, compared to HKD 0.43 in the previous year, reflecting a substantial growth[34]. - The group achieved a profit from continuing operations of HKD 22,752,000 for the six months ended June 30, 2022, compared to HKD 5,628,000 in 2021, reflecting a significant increase of approximately 304.5%[85]. - Profit attributable to owners of the company from continuing operations increased by HKD 16,290,000 or approximately 221.6% to HKD 23,640,000 for the six months ended June 30, 2022[74]. Operational Metrics - The overall container throughput at Wuhan Yangluo Port decreased by approximately 16.3% to 331,890 TEUs, compared to 396,577 TEUs in the same period last year[14]. - The market share of the group at Wuhan decreased from 39.1% as of December 31, 2021, to 32.5% for the six months ending June 30, 2022, primarily due to a reduction in transshipment container volume[14]. - The average rate for local cargo containers at Wuhan Yangluo Port increased by approximately 21.9% to RMB 256 per TEU (approximately HKD 310) from RMB 210 per TEU (approximately HKD 252) in the prior year[59]. - The average rate for transshipment containers rose by approximately 90.9% to RMB 21 per TEU (approximately HKD 25) from RMB 11 per TEU (approximately HKD 13) in the previous year[59]. - The group reported a significant decrease in bulk cargo handling services revenue, down 54.3% to HKD 3,727,000, reflecting challenges in the market[52]. - Wuhan Yangluo Port's throughput for the six months ended June 30, 2022, was 331,890 TEUs, a decrease of 64,687 TEUs or approximately 16.3% compared to 396,577 TEUs in the same period of 2021[58]. Strategic Developments - The company plans to expand its port-related logistics services, leveraging its strategic locations in Hubei province[36]. - The group is developing the Shipaigang Port into a mixed-use port area of approximately 25 square kilometers, enhancing geographical coverage and operational synergies[47]. - The group has been focusing on expanding its port-related services, including bonded warehouses and customs clearance, to diversify revenue sources[40]. - The Han Nan Port project aims to create synergies with Yangluo Port, increasing throughput capacity to meet logistics service demands in Wuhan[43]. - The group anticipates continued growth in freight volume in China, particularly along the Yangtze River Economic Belt, supported by favorable government policies[78]. - The group aims to enhance its long-term growth potential through business restructuring and diversification strategies[79]. - The group plans to develop a comprehensive logistics ecosystem around the Yangtze River, aspiring to become the largest inland port logistics system in China[80]. - The group has proposed a development blueprint to ensure that Wuhan Port's container throughput reaches 5 million TEU by 2025, in line with government targets[83]. Financial Position - The company’s total assets as of June 30, 2022, were reported at HKD 1,725,066,689, with a significant portion attributed to investment properties[30]. - As of June 30, 2022, total assets amounted to HKD 1,474,266 thousand, a decrease from HKD 1,533,875 thousand as of December 31, 2021, representing a decline of approximately 3.9%[92]. - Total liabilities as of June 30, 2022, were HKD 442,911 thousand, compared to HKD 292,829 thousand as of December 31, 2021, reflecting an increase of 51.3%[104]. - The company's non-current assets decreased to HKD 1,241,046 thousand from HKD 1,474,266 thousand, a decline of approximately 15.8%[106]. - The equity attributable to owners of the company decreased to HKD 809,280 thousand from HKD 829,939 thousand, a reduction of about 2.5%[106]. - The company reported a net cash inflow from operating activities of HKD 3,744 thousand for the six months ended June 30, 2022, compared to HKD 21,881 thousand for the same period in 2021, indicating a decrease of 82.9%[110]. - The group reported a net current liability of HKD 202,056,000 as of June 30, 2022, raising concerns about its ability to continue as a going concern[120]. - The board believes the group will generate sufficient cash flow in the next twelve months and has received confirmation of financial support from Hubei Port Group[122]. Shareholder Structure - The company completed the acquisition of 1,290,451,130 shares, representing approximately 74.81% of the total issued share capital, making Hubei Port International Holdings the controlling shareholder[19]. - The company has applied for a temporary exemption from strict compliance with the minimum public float requirement due to a significant reduction in public shareholding following the acquisition[22]. - Hubei Port holds approximately 74.81% of the company's issued shares, increasing to about 87.66% after the mandatory cash offer ended on March 25, 2022[115]. - The company is currently in the process of transferring up to 22% of its issued share capital, pending government approvals, which may impact its ownership structure[25]. - The company has signed share transfer agreements for a total of 218,740,615 shares, representing approximately 12.68% of its issued share capital, at a price of HKD 1.15 per share[27]. Risks and Challenges - The company is facing risks related to the completion of the share transfer, which may affect its future capital structure and market position[28]. - The company reported a net cash outflow from investing activities of HKD 3,900 thousand for the six months ended June 30, 2022, compared to an inflow of HKD 42,140 thousand for the same period in 2021[110]. - The company’s management believes that the fair value of receivables is aligned with their book value, suggesting effective credit management[194].

Financial Performance - The total revenue for the year ended December 31, 2021, was HKD 253,839,000, representing an increase from HKD 247,671,000 in the previous year[4] - The cost of goods sold for the same period was HKD 198,290,000, up from HKD 193,348,000, indicating a rise in operational costs[4] - The company maintained its overall performance figures as disclosed in the unaudited and audited annual results announcements[8] Assets and Liabilities - The total non-current assets amounted to HKD 895,932,000, reflecting an increase from the previous year's figure[5] - The total current liabilities were reported at HKD 103,935,000, showing a slight increase compared to the previous year[5] Tax and Provisions - The company recognized a deferred tax impact of approximately HKD 6,260,000 due to a reduction in government grants[6] - The expected credit loss provision for other receivables was approximately HKD 2,250,000, affecting the income tax[6] Currency Impact - The average exchange rate for RMB to HKD was updated from 1.23 to 1.20, impacting the financial statements[5] Governance - The board of directors includes a mix of executive and independent non-executive members, ensuring diverse governance[9] Investment Focus - The company is focused on enhancing its investment properties, which accounted for a significant portion of its non-current assets[5]

Financial Performance - The company's revenue for the year ended December 31, 2021, was HKD 247,671,000, a decrease of 40.8% from HKD 417,862,000 in 2020[13] - Gross profit for the same period was HKD 54,323,000, down 39.5% from HKD 89,586,000 in 2020[13] - Operating profit before interest, tax, depreciation, and amortization was HKD 13,393,000, a decline of 77.9% compared to HKD 60,543,000 in the previous year[13] - The net profit attributable to owners of the company from continuing operations was HKD 21,650,000, down 22.4% from HKD 27,872,000 in 2020[19] - The earnings per share from continuing operations for 2021 was HKD 1.26, down from HKD 1.62 in 2020[19] - The profit attributable to the owners from continuing operations for the year ended December 31, 2021, was HKD 21.65 million, compared to HKD 27.87 million in 2020, reflecting a decrease of approximately 22%[29] - The company's revenue reported a decline, achieving HKD 352 million for the year 2021, compared to HKD 417.9 million in 2020[23] - The group's revenue from ongoing operations for the year ended December 31, 2021, was HKD 247.671 million, a decrease of 40.7% from HKD 417.862 million in 2020[56] - The company's profit attributable to the company's owners decreased by HKD 6,220,000 or approximately 22.3% to HKD 21,650,000 for the year ended December 31, 2021, compared to HKD 27,870,000 in 2020[80] - The basic and diluted earnings per share for the year ended December 31, 2021, were HKD 1.26, a decrease of 22.2% from HKD 1.62 in 2020[80] Operational Highlights - The company reported a total of 593,009 TEUs (Twenty-foot Equivalent Units) in container throughput for 2021, a decrease from 612,028 TEUs in 2020[21] - The total container throughput at Wuhan Yangluo Port for the year ended December 31, 2021, was 720,021 TEUs, an increase of 12.1% from 642,131 TEUs in 2020[62] - The market share for the company in 2021 was 38%, down from 44% in 2020[22] - The market share of the group decreased to approximately 39.1% from 43.6% in 2020, mainly due to ongoing competition from neighboring ports[67] - The company has successfully opened a new direct shipping route from Yangluo Port to Busan Port in South Korea, marking the first direct shipping line to South Korea from the central region of China[30] - The company has established three international shipping routes, enhancing its logistics capabilities and contributing to the "Belt and Road" initiative and the dual circulation strategy[30] Strategic Initiatives - The company plans to expand its logistics base in Central China, leveraging the Yangtze River Golden Waterway[4] - The company aims to provide comprehensive port services, multimodal logistics distribution, and infrastructure construction, focusing on building a leading logistics ecosystem in the region[32] - The company has developed port-related services, including bonded warehouses and customs clearance, to diversify its revenue sources[38] - The company has established a new logistics supply chain solution connecting Zhoushan to Yangluo Port, facilitating trade with the Chengyu region[29] - The company is optimistic about the future of its port business in Wuhan, aiming for a container throughput of 5 million TEU by 2025[89] Financial Position - The company incurred a net financing cost of HKD 23,869,000, reduced from HKD 35,041,000 in the previous year[13] - The total outstanding interest-bearing borrowings as of December 31, 2021, amounted to HKD 350,980,000, down from HKD 456,490,000 in 2020[91] - The total cash and cash equivalents as of December 31, 2021, were HKD 31,130,000, compared to HKD 38,180,000 in 2020[91] - The net asset value as of December 31, 2021, was HKD 949,180,000, an increase from HKD 922,310,000 in 2020[91] - The group's net current liabilities decreased to HKD 292,830,000 from HKD 384,150,000 in 2020, with current assets at HKD 150,080,000 compared to HKD 250,480,000 in 2020, resulting in a current ratio of 0.3, down from 0.4 in 2020[92] Governance and Compliance - The board consists of three executive directors, two non-executive directors, and three independent non-executive directors, providing a diverse governance structure[125] - The company has adopted the corporate governance code as per the listing rules, and has complied with all provisions during the fiscal year ending December 31, 2021[141] - The board consists of eight members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[142] - The company has established appropriate insurance to protect directors and senior officers against potential liabilities arising from company activities[149] - The board has confirmed the effectiveness and adequacy of the internal control and risk management systems, with no significant failures reported[180] Human Resources - The total remuneration paid to employees, including retirement contributions, reached HKD 76,690,000 for the year ended December 31, 2021, compared to HKD 57,060,000 in 2020[104] - As of December 31, 2021, the total number of employees was 389, a decrease from 476 in the previous year, indicating a reduction in workforce[123] - The group is focused on retaining talent amid competitive labor conditions, offering attractive compensation to meet business objectives[111] Risks and Challenges - The group identified operational risks including equipment failures and adverse weather conditions that could disrupt operations and lead to revenue losses[107] - The company faces operational risks in supply chain management due to intense competition and the potential inability to attract and retain customers[117] - Credit risk exists due to the time lag between payments to suppliers and collections from customers, which may adversely affect cash flow and financial condition[118] - Inventory risk arises from potential order cancellations by customers, leading to excess inventory that could negatively impact financial performance[119] - The company must maintain sufficient working capital levels to support its business model, and failure to do so could significantly affect operations and financial results[120] Environmental, Social, and Governance (ESG) - The reporting period for the environmental, social, and governance (ESG) report covers January 1, 2021, to December 31, 2021[200] - The ESG report aims to address stakeholders' concerns regarding the company's sustainable development and improve data collection and reporting systems[199] - The environmental key performance indicators include operations from nine subsidiaries contributing significantly to profits, located in the Hubei province of China[200]

Revenue and Profitability - Revenue for the six months ended June 30, 2021, increased by approximately 62.8% to HKD 122,512,000 compared to HKD 75,233,000 for the same period in 2020[13]. - The net profit attributable to owners of the company for the six months was HKD 7,352,000, a significant recovery from a loss of HKD 6,796,000 in the previous year[9]. - Profit attributable to owners of the company for the period was HKD 7,350,000, a 208.2% increase compared to a loss of HKD 6,800,000 in mid-2020, influenced by various factors including a fair value gain of HKD 27,700,000 from investment properties[15]. - The group reported a net profit of HKD 12,018,000 for the six months ended June 30, 2021, compared to a net loss of HKD 10,251,000 in the previous year, marking a significant turnaround[98]. - The total profit attributable to the company's owners for the six months ended June 30, 2021, was HKD 13,742,000, compared to HKD 8,151,000 in the same period of 2020, representing a significant increase[156]. Gross Profit and Margins - Gross profit for the same period was HKD 41,539,000, with a gross margin of 33.9%, down from 56.1% in 2020[9]. - Gross profit fell by 1.7% to HKD 41,540,000 (mid-2020: HKD 42,240,000), with a gross profit margin decreasing to 33.9% (mid-2020: 56.1%) primarily due to the dilution effect from lower-margin supply chain management and trading business revenues[15]. - Gross profit for the six months ended June 30, 2021, was HKD 41,540,000, down from HKD 42,240,000, with a gross margin of 33.9% compared to 56.1% in the prior period[76]. Operational Performance - Container throughput at Wuhan Yangluo Port increased by approximately 92.6% to 396,577 TEUs, driven by a 16.6% increase in local cargo and a 210.5% increase in transshipment cargo[13]. - The overall business volume increased as the economy began to recover from the COVID-19 pandemic, contributing to the revenue growth[13]. - The throughput at Wuhan Yangluo Port reached 396,577 TEUs, an increase of 190,699 TEUs or approximately 92.6% compared to 205,878 TEUs in the same period of 2020[69]. - The average rate for local cargo at Wuhan Yangluo Port was RMB 210 per TEU (approximately HKD 252), a decrease of about 4.1% compared to RMB 219 per TEU (approximately HKD 241) in the same period of 2020[70]. Asset and Liability Management - The company reported a total asset value of HKD 1,660,150,000 as of June 30, 2021, down from HKD 1,870,226,000 at the end of 2020[11]. - Non-current liabilities totaled HKD 321,019,000, while current liabilities were HKD 433,159,000, resulting in total liabilities of HKD 754,178,000[11]. - The group reported a net current liability of HKD 207,336,000 as of June 30, 2021, raising concerns about its ability to continue as a going concern[121]. - The company’s inventory rose to HKD 7,924,000, up from HKD 6,258,000, reflecting an increase of 26.6%[104]. - The accounts receivable and other receivables increased to HKD 142,242,000 from HKD 137,541,000, showing a growth of 3.9%[104]. Strategic Initiatives and Future Plans - The company plans to continue expanding its logistics services and enhance supply chain management capabilities in response to market recovery[13]. - The company is expanding its port-related services, including bonded warehouses and logistics, to diversify revenue sources and enhance operational efficiency[39]. - The company plans to develop the Sha Yang Port with six berths, which is part of its strategy to create synergies with Wuhan Yangluo Port and capitalize on the "Belt and Road" initiative[43]. - The group aims to achieve a container throughput of 5 million TEUs at Wuhan Port by 2025, in line with the provincial government's goal of establishing Wuhan as a core port in the Yangtze River basin[94]. - The group has initiated a strategy to integrate regional agricultural resources and develop a modern bonded logistics base in northwestern Hubei, focusing on international trade[93]. Discontinued Operations - The group has terminated its construction service operations following the sale of its subsidiary, Zhongji Tongshang Engineering, which was completed in June 2021[17]. - The group completed the sale of its 100% stake in Zhongji Tongshang Engineering on June 21, 2021, terminating its construction services business[50]. - The group’s construction business segment was classified as discontinued operations following the sale of its entire equity interest in the construction business as of June 30, 2021[131]. Financial Support and Government Policies - The group anticipates continued financial support from its controlling shareholder, Mr. Yan, if needed within the next twelve months[121]. - The group has received favorable policies from the Hubei provincial and Wuhan municipal governments to expand container transport, reinforcing its position as a key shipping hub[94]. - The company has a three-year tax exemption for certain subsidiaries in China, which will end on December 31, 2021, followed by a 50% tax reduction for the next three years[155].