Financial Performance - The company achieved a revenue of HKD 2,745.5 million for the fiscal year 2024, representing a year-on-year growth of 30.5%[13] - EBITDA increased by 53.6% to HKD 207.4 million, indicating a significant recovery in profitability[13] - In the fiscal year 2024, the company achieved a revenue of approximately HKD 2,745.5 million, representing a year-on-year growth of 30.5% compared to HKD 2,104.0 million in fiscal year 2023[21] - The company's EBITDA for fiscal year 2024 was approximately HKD 207.4 million, an increase of about 53.6% from HKD 135.1 million in fiscal year 2023, primarily due to a rebound in business operations[21] - The air freight agency business generated revenue of approximately HKD 1,178.6 million in fiscal year 2024, a 40.2% increase from HKD 840.5 million in fiscal year 2023[34] - The company's operations in China contributed revenue of HKD 638.1 million, reflecting a 32.0% increase from HKD 483.3 million in fiscal year 2023, driven by rising freight rates and increased air freight volumes[23] - The Italian office's revenue increased significantly by 56.9% to HKD 708.7 million in fiscal year 2024, up from HKD 451.6 million in fiscal year 2023[24] - The company's new branch, 嘉泓快递, generated approximately HKD 315.2 million in its first year of operation[29] - The cruise logistics segment contributed revenue of HKD 430.2 million, showing a stable year-on-year growth of 11.4% from HKD 386.4 million in fiscal year 2023[30] - The company's Vietnam office reported revenue of HKD 88.0 million, a growth of approximately 59.0% compared to the previous fiscal year[26] - The revenue from the shipping agency business for FY2024 was approximately HKD 780.4 million, an increase of about 64.4% compared to FY2023's HKD 474.7 million, with gross profit rising by approximately 92.5% to HKD 180.1 million[35] - The revenue from the cruise logistics segment for FY2024 was approximately HKD 430.3 million, an increase of about 11.4% from FY2023's HKD 386.4 million, while gross profit decreased to HKD 129.2 million from HKD 141.9 million[37] - The revenue from the wine distribution and logistics segment for FY2024 was approximately HKD 356.2 million, a decrease from FY2023's HKD 402.4 million, with gross profit declining by about 15.9% to approximately HKD 46.0 million[39] Strategic Initiatives - A new e-commerce logistics solution was launched targeting outbound logistics demand from Hong Kong and mainland China, integrating local transport, international freight forwarding, customs clearance, warehousing, and last-mile delivery services[13] - The acquisition of a major stake by DP World, a multinational logistics company based in Dubai, enhances the company's operational capabilities and financial strength[14][15] - Future strategies include expanding business through new office openings and leveraging DP World's network, as well as deploying automation and AI technologies to improve operational efficiency[16] - The company aims to explore new verticals for sustainable growth while reinforcing its existing business[16] - The logistics industry is expected to present new opportunities as the most challenging periods are gradually receding[16] - The company is optimistic about opportunities in the Southeast Asian market and is steadily increasing investments in the region to enhance scalability and profitability[28] - The partnership with DP World, which became a controlling shareholder in August 2024, is a strategic milestone aimed at expanding market presence and enhancing service excellence[57] Sustainability and Corporate Responsibility - The company is committed to sustainable development and green supply chain initiatives, actively promoting green logistics measures to reduce carbon footprint[15] - The company emphasizes its commitment to corporate social responsibility and environmental practices throughout its operations[15] - The company is committed to environmental protection and continues to implement energy-saving and emission reduction projects to improve environmental management[157] Shareholder Returns - The company plans to distribute a final dividend of HKD 0.01 per ordinary share to reward shareholders for their unwavering support[13] - The board proposed a final dividend of HKD 0.01 per share for the fiscal year 2024, totaling HKD 3,004,890, pending shareholder approval[61] - The company reported a final dividend of HKD 0.01 per ordinary share for the fiscal year 2024, totaling HKD 3,004,890, consistent with the previous fiscal year[85] - The board of directors emphasizes a stable and sustainable return for shareholders as a key objective in its dividend policy[86] Financial Position and Risks - As of December 31, 2024, the company's operating cash flow was approximately HKD 58.8 million, down from approximately HKD 100.0 million in FY2023[41] - The company's current ratio as of December 31, 2024, was 1.15, an improvement from 1.00 on December 31, 2023, with operating capital at approximately HKD 143.9 million compared to a negative HKD 3.0 million in the previous year[40] - The company's total bank loans and overdrafts as of December 31, 2024, were approximately HKD 384.1 million, an increase from approximately HKD 320.9 million on December 31, 2023[41] - The capital debt ratio as of December 31, 2024, was approximately 35.2%, up from 18.1% on December 31, 2023[41] - The company faced foreign exchange risks primarily from fluctuations in the Renminbi and Euro, with no specific hedging policies in place[42] Governance and Management - The company views employees as its most valuable asset and maintains good working relationships, with no labor disputes reported for the fiscal year 2024[92] - The company has established compliance and risk management policies, ensuring adherence to significant legal and regulatory requirements for fiscal year 2024[93] - The roles of the Chairman and CEO are held by different individuals to ensure balanced power and perspective, with Liu Shiyou as Chairman and Yan Tianrong as CEO[172] - The board of directors has complied with the requirement of having at least three independent non-executive directors, constituting at least one-third of the board[170] - The company has adopted share option and share award plans to provide incentives and rewards to selected participants, including designated employees[160] - The company has established a securities trading code that meets or exceeds standard requirements, with all directors confirming compliance during the fiscal year 2024[180] - The company has implemented an independent opinion mechanism to improve the efficiency and performance of the board[183] - The audit committee's responsibilities include reviewing the financial reporting system, internal controls, and risk management systems[199] Related Party Transactions - The DP World Group General Agency Agreement is effective from August 29, 2024, to December 31, 2026, with DP World being a related party due to its status as a major shareholder[146] - Independent non-executive directors have confirmed that the ongoing related party transactions are conducted in the ordinary course of business and on normal commercial terms[149] - The auditor has confirmed compliance with the disclosure requirements under the listing rules regarding related party transactions for the fiscal year 2024[150] - No significant contracts were entered into with the controlling shareholder or its subsidiaries during the fiscal year 2024, aside from those disclosed in the financial statements[152] Employee and Director Information - Employee costs for the fiscal year 2024 were approximately HKD 339.2 million, up from HKD 328.6 million in the previous fiscal year, with a workforce increase to 861 employees[59] - Ms. Chen has over 20 years of experience in sales and marketing within the freight forwarding industry, having joined the group in October 2001[64] - Ms. Morandin has over 40 years of experience in the Italian freight forwarding industry and was appointed as an executive director on December 22, 2021[66] - Mr. Di Nello has over 30 years of experience in the Italian freight forwarding industry and has been with the group since May 2012[67] - Mr. Varsamidis was appointed as a non-executive director on September 5, 2024, and has nearly 30 years of experience in financial management[68] - Mr. Lin has over 30 years of experience in accounting and finance and has been an executive director of Oriental Watch Holdings Limited since April 2003[70] - Mr. Chan has over 30 years of experience in private equity management and has been a partner at Hong Kong Sky Horizon Ventures since August 2024[72] Committees and Board Activities - The board has established five committees, including the remuneration committee and nomination committee, to oversee specific matters[184] - The remuneration committee is responsible for recommending the company's remuneration policies and structures to the board[185] - The nomination committee evaluates the board's structure and composition annually to align with the company's corporate strategy[189] - The audit committee held two meetings during the fiscal year 2024, reviewing the annual financial statements and interim financial reports[195] - The governance committee reviews compliance with legal and regulatory requirements, as well as the effectiveness of shareholder communication policies[198]

Financial Performance - The company recorded a revenue growth of approximately 30.5%, increasing from HKD 2,104.0 million in FY2023 to HKD 2,745.5 million in FY2024[2] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 53.6%, rising from HKD 135.1 million in FY2023 to HKD 207.5 million in FY2024[2] - The freight forwarding business saw a revenue increase of about 40.4%, growing from HKD 1,701.6 million in FY2023 to approximately HKD 2,389.3 million in FY2024[2] - The net profit for FY2024 was HKD 31.967 million, a decrease from HKD 48.247 million in FY2023[4] - Basic and diluted earnings per share for FY2024 were both HKD 0.109, down from HKD 0.165 in FY2023[3] - The company reported a total comprehensive income of HKD 8.624 million for FY2024, significantly lower than HKD 47.397 million in FY2023[4] - The profit before tax for 2024 is HKD 32,009,000, a decrease from HKD 48,278,000 in 2023, representing a decline of approximately 33.9%[32] - The total tax expense for 2024 is HKD 50,899,000, significantly higher than HKD 24,128,000 in 2023, indicating an increase of about 111%[26] Assets and Liabilities - Total assets less current liabilities increased to HKD 618.267 million in FY2024 from HKD 513.334 million in FY2023[5] - The company's net asset value rose to HKD 548.458 million in FY2024, compared to HKD 413.497 million in FY2023[6] - The company's cash and cash equivalents decreased slightly to HKD 255.023 million in FY2024 from HKD 260.279 million in FY2023[5] - Trade receivables, net of loss provisions, increased to HKD 534.9 million in 2024 from HKD 373.2 million in 2023[46] - The company's trade payables rose to HKD 308.3 million in 2024, up from HKD 236.1 million in 2023[51] - Total specific non-current assets decreased to HKD 453,053,000 in 2024 from HKD 495,136,000 in 2023, a decline of about 8.5%[24] Operational Highlights - The air freight segment generated external sales of HKD 1,178,575,000 in 2024, up from HKD 840,497,000 in 2023, marking an increase of about 40.2%[20][22] - Revenue from external customers in mainland China increased to HKD 638,139,000 in 2024, up from HKD 483,296,000 in 2023, reflecting a growth of about 32.2%[24] - The Italy office's revenue surged by 56.9% to HKD 708.7 million in FY2024, benefiting from improved economic conditions and increased business volume[63] - The Vietnam office reported revenue of HKD 88.0 million, a growth of approximately 59.0% in FY2024, primarily from textile exports to the U.S.[64] - The newly launched Jia Hong Express generated approximately HKD 315.2 million in revenue in its first operational year[65] - The cruise logistics segment contributed revenue of HKD 430.2 million, reflecting a stable year-on-year growth of 11.4%[66] Expenses and Costs - The company’s administrative and other operating expenses increased to HKD 423,379,000 in 2024 from HKD 392,893,000 in 2023, reflecting a rise of approximately 7.8%[20][22] - Employee costs rose to HKD 339,199,000 in 2024, up from HKD 328,592,000 in 2023, reflecting an increase of approximately 3.9%[25] - The financing costs for the year were HKD 27,069,000, up from HKD 22,558,000 in the previous year, indicating an increase of approximately 20.5%[20][22] - The depreciation expense for property, plant, and equipment in 2024 is HKD 29,073,000, compared to HKD 28,559,000 in 2023, reflecting an increase of about 1.8%[25] Dividends and Shareholder Information - The company proposed a final dividend of HKD 0.01 per share for FY2024, consistent with FY2023[2] - The board proposed a final dividend of HKD 0.01 per share for the fiscal year 2024, totaling HKD 3,004,890, pending shareholder approval[95] - The group will suspend share transfer registration from May 26 to May 29, 2025, to determine eligibility for voting at the annual general meeting[96] Strategic Developments - The company operates in 16 countries and regions, including China, the United States, and various European countries, and has partnerships with over 100 business partners globally[59] - A strategic alliance with DP World, which became the group's controlling shareholder in August 2024, aims to enhance market presence and operational efficiency[92] - The group is expanding into new verticals, including the delivery of aviation and automotive parts in Europe, leveraging expertise and global networks for sustainable growth[91] Market Outlook - The group maintains a cautiously optimistic outlook for the business environment, expecting global economic growth of 3.3% in 2025 and 2026, slightly above 3.2% in 2024[87] - The Southeast Asian market is projected to grow by 4.5% in 2024 and 4.7% in 2025, driven by resilient domestic and foreign demand[88] - The cruise tourism market is expected to grow from $6.96 billion in 2024 to $7.62 billion in 2025, prompting the group to invest in dedicated infrastructure at major cruise ports[90] Governance and Reporting - The board of directors consists of executive directors Liu Shiyou, Yan Tianrong, Chen Yawen, Augusta Morandin, and Fabio Di Nello, along with non-executive and independent directors[101] - The annual report for the fiscal year 2024 will be published in accordance with listing rules at an appropriate time on the stock exchange and the company's website[100]

Financial Performance - For the first half of 2024, the group's revenue increased by 20.4% to HKD 1,223.6 million, compared to HKD 1,016.7 million in the same period of 2023[11] - The net profit attributable to equity shareholders rose by 41.7% to HKD 18.6 million, up from HKD 13.1 million in the first half of 2023[11] - The gross profit for the period was approximately HKD 228.3 million, reflecting an increase of 11.4% from HKD 204.9 million in the first half of 2023[17] - Operating profit increased to HKD 50,033, a rise of 38.7% from HKD 36,091 in the previous year[74] - Profit before tax was HKD 39,081, up 45.8% from HKD 26,782 in the prior period[74] - Net profit for the period was HKD 20,248, compared to HKD 13,453 in 2023, reflecting a growth of 50.5%[74] - Basic and diluted earnings per share increased to HKD 6.4, up from HKD 4.5 in the same period last year[74] Revenue Breakdown - Revenue from the Greater China region increased by 12.2% to HKD 252.6 million, with approximately HKD 72.5 million coming from e-commerce operations[12] - The Italian subsidiary's revenue grew by 20.4% to HKD 303.9 million, compared to HKD 252.3 million in the first half of 2023[13] - The air freight agency business accounted for approximately 41.2% of total revenue, with revenue of about HKD 503.6 million, a 31.9% increase from HKD 381.9 million in the same period last year[19] - The logistics and distribution segment generated revenue of approximately HKD 184.7 million, a decrease of 7.6% from HKD 199.8 million in the first half of 2023[21] - The sea freight agency segment saw revenue rise to approximately HKD 308.9 million, a 30.0% increase from HKD 237.6 million in the same period last year[22] - The cruise logistics segment reported revenue of approximately HKD 226.4 million, reflecting a growth of 14.7% from HKD 197.4 million in the first half of 2023[23] Operational Developments - The company is focusing on innovative solutions to enhance customer loyalty and operational efficiency, including the introduction of smart robotic warehouses[12] - The group has strengthened relationships with key clients in Europe, leading to an increase in logistics orders and improved business performance[15] - The overall logistics industry is stabilizing, with air and sea freight capacities recovering to pre-pandemic levels[11] - The group operates 21 local subsidiaries across 15 countries and regions, maintaining partnerships in over 100 countries[11] Market Outlook - The logistics industry is projected to grow by 3.8% in 2024, driven by increasing industrial production and consumer demand, particularly in China, the US, and India[11] - The cruise logistics market is projected to see passenger numbers increase from 31.5 million in 2023 to 39.5 million by 2027, indicating significant demand in this sector[40] Financial Position - The group's debt-to-equity ratio increased to approximately 50.3% as of June 30, 2024, up from 21.0% on December 31, 2023, due to increased bank loans and overdrafts[25] - The maximum liability under bank financing as of June 30, 2024, is HKD 348.0 million, an increase from HKD 314.7 million as of December 31, 2023[29] - Total assets as of June 30, 2024, were HKD 1,022,416, compared to HKD 898,227 at the end of 2023[81] - Current liabilities amounted to HKD 894,163, a slight decrease from HKD 901,273 at the end of 2023[81] - The company reported a total comprehensive income of HKD 6,097 for the period, compared to HKD 3,804 in 2023[78] Cash Flow and Dividends - Operating cash flow was approximately HKD -15.0 million, compared to HKD 45.6 million in operating cash inflow in the first half of 2023[25] - The company reported a net cash outflow of HKD 49,499,000 for the six months ended June 30, 2024, compared to a net outflow of HKD 6,757,000 in the prior year[91] - The board declared an interim dividend of HKD 0.02 per ordinary share, totaling HKD 600,978, expected to be paid on November 1, 2024[47] Employee and Governance - As of June 30, 2024, the group employed 823 staff, a slight decrease from 828 staff as of June 30, 2023[43] - Employee costs for the reporting period amounted to approximately HKD 166,624,000, compared to HKD 169,240,000 in the first half of 2023, reflecting a decrease of about 1.0%[43] - The company has adopted corporate governance codes in compliance with the Hong Kong Stock Exchange[64] - The audit committee consists of three independent non-executive directors, ensuring compliance with financial reporting standards[66] Shareholder Information - DP World Logistics FZE has become the major shareholder, holding 57.9% of the company's issued share capital, which is expected to unlock new growth opportunities[33][42] - Mr. Liu holds a controlled interest in 173,845,222 shares, representing 57.9% of the company[51] - The company has adopted stock option and share award plans to reward eligible participants for their contributions to business achievements[43]

Financial Performance - The group recorded revenue of approximately HKD 1,223.6 million for the six months ended June 30, 2024, representing a year-on-year increase of about 20.4% compared to HKD 1,016.7 million in the first half of 2023[1]. - Profit attributable to equity shareholders was approximately HKD 18.6 million, up about 41.7% from HKD 13.1 million in the first half of 2023[1]. - EBITDA, after excluding one-time fair value gains from the Allport Cruise acquisition, was approximately HKD 63.8 million, reflecting a growth of about 55.3% from HKD 41.1 million in the first half of 2023[1]. - The group's operating profit for the period was HKD 50,033,000, up from HKD 36,091,000 in the first half of 2023[2]. - The company's profit before tax for the six months ended June 30, 2024, was HKD 18,610,000, compared to HKD 13,137,000 for the same period in 2023, representing a year-on-year increase of approximately 42.5%[19]. - The total tax expense for the six months ended June 30, 2024, was HKD 18,833,000, compared to HKD 13,329,000 for the same period in 2023, representing an increase of approximately 41.4%[17]. - The gross profit for the first half of 2024 was approximately HKD 228.3 million, an 11.4% increase from HKD 204.9 million in the same period of 2023[37]. Revenue Breakdown - The freight forwarding services business, including air and sea freight agency services, recorded segment revenue of approximately HKD 1,038.9 million, an increase of about 27.2% from HKD 816.9 million in the first half of 2023[1]. - Air freight services generated revenue of HKD 503,592,000, up 31.9% from HKD 381,909,000 year-over-year[9]. - Sea freight services revenue increased by 30.0% to HKD 308,940,000 from HKD 237,564,000[9]. - Cruise logistics services revenue rose to HKD 226,390,000, a 14.7% increase compared to HKD 197,412,000 in the previous year[9]. - Distribution and logistics services revenue decreased to HKD 184,659,000, down 7.6% from HKD 199,773,000[9]. - The e-commerce business in China contributed to a revenue increase of 12.2% to HKD 252.6 million, with approximately HKD 72.5 million coming from the e-commerce operations of a key subsidiary[33]. - The sea freight agency segment reported revenue of approximately HKD 308.9 million, a 30.0% increase from HKD 237.6 million in the same period last year, attributed to significant growth in luxury goods and tire product imports from China and Southeast Asia[42]. Dividends and Earnings Per Share - Basic and diluted earnings per share increased to HKD 6.4 from HKD 4.5 in the first half of 2023[2]. - The board declared an interim dividend of HKD 0.02 per ordinary share[1]. - The board declared an interim dividend of HKD 0.02 per share, totaling HKD 600,978, expected to be paid on November 1, 2024[61]. Assets and Liabilities - The group's total assets less current liabilities amounted to HKD 640,879,000 as of June 30, 2024, compared to HKD 513,334,000 as of December 31, 2023[4]. - The net asset value increased to HKD 561,190,000 from HKD 413,497,000 as of December 31, 2023[5]. - The company's trade receivables, net of impairment losses, rose to HKD 471,713,000 as of June 30, 2024, from HKD 373,198,000 at the end of 2023, marking an increase of about 26.4%[26]. - The company's trade payables increased to HKD 304,337,000 as of June 30, 2024, from HKD 236,123,000 at the end of 2023, reflecting an increase of about 28.9%[29]. - The company's contract liabilities increased to HKD 34,789,000 as of June 30, 2024, compared to HKD 7,795,000 at the end of 2023, indicating a significant rise[29]. Operational Insights - The company has not disclosed the analysis of assets and liabilities by operating and reportable segments as it does not provide such information to the chief operating decision maker[15]. - The company is focusing on expanding its presence in Southeast Asia, with revenue growth of 54.2% in Vietnam and over 200% in Indonesia during the reporting period[36]. - The company is investing in logistics infrastructure in Southeast Asia to enhance scalability and improve efficiency and profitability[36]. - The group plans to expand its business into high-potential regional markets by establishing regional offices in countries such as Vietnam, Indonesia, and Cambodia[55]. - The group aims to capture local market opportunities through localized management and efficient operations[55]. Market Outlook and Strategic Initiatives - The group remains optimistic about the second half of 2024, supported by a projected global GDP growth rate increase from 2.8% in 2023 to 3.2% in 2024[54]. - The cruise logistics market is projected to grow, with passenger numbers expected to rise from 31.5 million in 2023 to 39.5 million by 2027, indicating significant demand in this sector[57]. - The recent strategic alliance with DP World, a major shareholder, is anticipated to unlock new growth opportunities and enhance business operations in the Middle East market[58]. - The company successfully launched "Jiahong Express" at the end of 2023, expanding partnerships with leading e-commerce platforms and planning to extend services to more countries and increase charter flights[56]. Governance and Compliance - The company has adopted corporate governance practices in compliance with the Hong Kong Stock Exchange's listing rules, ensuring adherence to governance codes during the reporting period[63]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial performance for the reporting period[65]. - The company plans to publish its interim report in accordance with listing rules, providing shareholders with relevant financial information[66].

Corporate Governance - The board of directors consists of seven male members and two female members, with a gender ratio of approximately 37% male to 63% female among employees[32]. - The company maintains the minimum public float as stipulated by the listing rules as of the date of the annual report[8]. - The company has adopted a board diversity policy to enhance performance quality, with the nomination committee responsible for monitoring its implementation[29]. - The company’s executive director and CEO roles are held by different individuals to ensure a balance of power and authority[18]. - The company’s board members are required to submit training details annually to maintain appropriate training records[21]. - The company’s nomination committee will continue to seek potential candidates to enhance board diversity[32]. - The company confirmed that its controlling shareholders complied with non-competition commitments during the fiscal year 2023[64]. - The company is committed to maintaining compliance with corporate governance codes and has reviewed its adherence during the fiscal year[80]. Financial Performance - The company recorded revenue of approximately HKD 2,104.0 million for the fiscal year 2023, a decrease of about 24.5% compared to HKD 2,788.0 million in fiscal year 2022[114]. - Gross profit for fiscal year 2023 was approximately HKD 420.0 million, down 18.7% from HKD 516.8 million in fiscal year 2022[114]. - Net profit attributable to equity shareholders for fiscal year 2023 was approximately HKD 48.3 million, a decrease of about 44.2% from HKD 86.6 million in fiscal year 2022[114]. - The air freight forwarding segment generated revenue of approximately HKD 840.5 million in fiscal year 2023, a decrease of about 32.6% from HKD 1,246.4 million in fiscal year 2022[116]. - The logistics and distribution segment contributed approximately 19.1% to total revenue in fiscal year 2023, up from 14.4% in fiscal year 2022[118]. - The logistics and distribution segment's revenue was approximately HKD 402.4 million in fiscal year 2023, slightly up from HKD 400.3 million in fiscal year 2022, with gross profit increasing by about 17.1%[119]. - The sea freight forwarding segment's revenue was approximately HKD 474.7 million in fiscal year 2023, a decrease of about 44.6% from HKD 857.6 million in fiscal year 2022[120]. - The group's operating cash inflow for FY2023 was approximately HKD 100.0 million, down from HKD 162.9 million in FY2022, a decrease of about 38.5%[96]. - As of December 31, 2023, the group's cash and cash equivalents were approximately HKD 260.3 million, a decrease of about 12.7% from HKD 298.2 million as of December 31, 2022[96]. - The group's current ratio as of December 31, 2023, was 1.00, consistent with FY2022[95]. - The group's capital debt ratio as of December 31, 2023, was approximately 18.1%, compared to a negative 13.2% as of December 31, 2022[96]. - The audit fee for the fiscal year 2023 was HKD 4,295,000, with total fees paid to the auditor amounting to HKD 5,188,000[68]. Risk Management and Compliance - The independent non-executive directors have confirmed that the continuing connected transactions are conducted in the ordinary course of business and on normal commercial terms[2]. - The audit committee confirmed the effectiveness of the financial reporting system, internal controls, and risk management systems[41]. - The company established an internal audit function to review accounting practices and significant controls, providing results and improvement suggestions to the audit committee[42]. - The risk and compliance committee monitored sanction risks and the implementation of related internal control procedures[62]. - The company has adopted an anti-corruption policy to promote compliance with anti-corruption laws and regulations[43]. - The company has a service contract with its executive directors, with terms including automatic renewal and a notice period for termination[20]. - The company has implemented strict control policies and has not engaged in speculative trading of debt securities or financial derivatives[168]. Environmental and Sustainability Initiatives - The company has signed the Low Carbon Charter and is committed to achieving carbon neutrality by 2050[136]. - The company has implemented an ISO 14001 certified environmental management system to regularly review environmental goals and monitor key performance indicators[137]. - The company has expanded its electric vehicle fleet and is committed to developing green logistics to achieve net-zero emissions[134]. - The total weight of materials recycled through the green logistics solutions reached 113,756.20 kg in the fiscal year 2023[133]. - The total water consumption for the fiscal year 2023 was 10,163.97 cubic meters, with established water-saving goals[138]. - The total consumption of energy in fiscal year 2023 was 5,231.39 MWh, a decrease from 5,321.68 MWh in the previous year[143]. - The company aims to reduce water consumption by 20% from 2020 levels by 2030[162]. - The company plans to reduce energy consumption by 30% from 2020 levels by 2030, focusing on office and warehouse electricity usage and vehicle engine operations[186]. - The company has introduced sustainable packaging materials in its China office since May 2023, including the cessation of plastic safety labels[163]. - The company encourages recycling and waste reduction among employees, adhering to the "4R" principles: Reduce, Reuse, Recycle, and Recreate[198]. - The company has identified six United Nations Sustainable Development Goals relevant to its business operations[150]. - The company received recognition as a Hong Kong Green Organization by the Environmental Campaign Committee for its contributions to environmental protection[158]. - The company has launched three new electric vehicles to promote sustainable logistics and reduce environmental impact[152]. - The company has implemented sustainable packaging materials in its China office since May 2023, including the cessation of plastic safety labels[163]. - The company’s greenhouse gas emissions standards have been certified by the United Nations Framework Convention on Climate Change and EcoVadis, scoring above or equal to 42% of all companies evaluated in the 2023 fiscal year[165]. - Total greenhouse gas emissions for the fiscal year 2023 amounted to 2,400.21 tons of CO2 equivalent, a decrease from 2,542.09 tons in 2022, representing a reduction of approximately 5.57%[172]. - Direct greenhouse gas emissions (Scope 1) decreased to 36.48 tons in 2023 from 49.39 tons in 2022, a reduction of about 26%[172]. - The group reduced its carbon footprint by approximately 4,951.43 tons of CO2 equivalent through the use of electric vans and trucks in the fiscal year 2023[173]. - The group has installed electric vehicle charging stations in Italy, completed in October 2023, to promote the adoption of electric vehicles[173]. - The group has 12 participating brands in its green logistics initiative, primarily from the high-end fashion industry, promoting circular economy and carbon neutrality[178]. - The company achieved a reduction in greenhouse gas emissions, with nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter (PM) emissions recorded at 6.45 kg, 0.11 kg, and 0.40 kg respectively for FY2023[196]. - The company’s total non-hazardous waste generated in FY2023 was 244.99 tons, down from 273.01 tons in FY2022[197]. - In FY2023, the company reported a decrease in harmful waste, with total hazardous waste at 0.61 tons compared to 0.35 tons in FY2022[197]. - The company continues to review policies related to climate change and aims to reduce its carbon footprint with annual reduction targets[141]. - The company is committed to reducing waste and has plans to collaborate with local communities to support food waste and non-hazardous waste recycling initiatives[175]. Employee and Social Responsibility - The company employed 821 staff as of December 31, 2023, compared to 678 staff as of December 31, 2022, with employee costs amounting to approximately HKD 328,592,000 in fiscal year 2023[109]. - The total number of employees as of December 31, 2023, was 541, with a gender distribution of 199 males and 342 females[182]. - The company has established anti-bribery and anti-corruption policies and training for all employees[149]. - The company actively engages with stakeholders to improve its environmental, social, and governance performance[148]. - The company is actively exploring broader partnerships in the e-commerce logistics sector, particularly in China and Europe, following successful trials with a well-known Chinese e-commerce platform[108].

Revenue Performance - The group's revenue from its China office decreased by 24.9% to HKD 483.3 million in the current year, down from HKD 643.4 million in 2022[4]. - Revenue from the group's office in Italy fell by 52.4% to HKD 451.6 million, compared to HKD 949.6 million in 2022[5]. - The Vietnam office showed strong performance with revenue of HKD 55.4 million, a 61.3% increase from the previous fiscal year[6]. - The cruise logistics segment recorded significant growth, contributing HKD 386.4 million in revenue, a 36.2% increase from HKD 283.7 million in 2022[7]. - The air freight agency business generated approximately HKD 840.5 million in revenue, a decrease of about 32.6% from HKD 1,246.4 million in 2022[10]. - The logistics and distribution services segment reported revenue of approximately HKD 402.4 million, slightly up from HKD 400.3 million in 2022, with a gross profit increase of about 17.1%[12]. - The group recorded revenue of approximately HKD 2,104.0 million for the fiscal year 2023, a decrease of about 24.5% compared to HKD 2,788.0 million in fiscal year 2022[38]. - Revenue from external customers for the year was HKD 2,103,959,000, down from HKD 2,787,972,000 in 2022, representing a decline of approximately 24.5%[61]. - The freight forwarding business, including air and sea freight, saw a revenue decline of approximately 28.7%, from HKD 2,387.7 million in fiscal year 2022 to approximately HKD 1,701.6 million in fiscal year 2023[38]. - The logistics division contributed approximately 19.1% of total revenue in fiscal year 2023, up from 14.4% in fiscal year 2022[139]. Profitability - Profit attributable to equity shareholders for fiscal year 2023 was approximately HKD 48.3 million, down 44.2% from HKD 86.6 million in fiscal year 2022[38]. - The total comprehensive income for the year was HKD 47,397,000, a decrease from HKD 74,585,000 in the previous year[49]. - The total net profit before tax for 2023 was HKD 72,375, compared to HKD 147,761 in 2022, reflecting a decline of approximately 51%[82]. - Gross profit for fiscal year 2023 was approximately HKD 420.0 million, down 18.7% from HKD 516.8 million in fiscal year 2022, with a gross margin increase from 18.5% in 2022 to 20.0% in 2023[136]. - The gross profit margin increased from 18.5% in fiscal year 2022 to 20.0% in fiscal year 2023[38]. - The gross profit for the air freight segment was HKD 129,906 in 2023, down from HKD 204,887 in 2022, indicating a decrease of about 36.6%[82]. - The gross profit margin for the logistics segment was HKD 54,731 in 2023, compared to HKD 46,709 in 2022, reflecting an increase of approximately 17.5%[82]. Cash Flow and Financial Position - The group's operating cash flow improved from a negative HKD 7.2 million to a negative HKD 3.0 million as of December 31, 2023[16]. - The group generated a net cash inflow from operating activities of HKD 99,989,000 for the year ended December 31, 2023[53]. - The group’s cash and cash equivalents as of December 31, 2023, were HKD 282,484,000[53]. - Total current assets amounted to HKD 898,227,000, while total current liabilities were HKD 901,273,000 as of December 31, 2023[53]. - The group reported a net current liability of HKD 3,046,000, primarily due to a payable for the purchase consideration of HKD 185,098,000, of which HKD 148,041,000 will be settled through the issuance of shares[53]. - The company reported trade receivables of HKD 373,198,000 for 2023, down from HKD 464,945,000 in 2022, indicating a decrease of approximately 19.7%[123]. - The company reported a significant increase in bank loans, which rose to HKD 13,230 in 2023 from HKD 1,715 in 2022, indicating a substantial increase of about 671%[74]. - The group’s bank loans and overdrafts amounted to approximately HKD 320.9 million as of December 31, 2023, compared to HKD 286.9 million on December 31, 2022[173]. - The capital debt ratio as of December 31, 2023, was approximately 18.1%, compared to a negative 13.2% on December 31, 2022[173]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.01 per ordinary share for fiscal year 2023, pending approval at the upcoming annual general meeting[38]. - The proposed final dividend for the fiscal year 2023 is HKD 0.01 per share, totaling approximately HKD 3,004,890, subject to shareholder approval[120]. - The board proposed a final dividend of HKD 0.01 per share for the fiscal year 2023, totaling HKD 3,004,890, down from HKD 0.10 per share in 2022[183]. Business Expansion and Strategy - The group plans to expand its business into the cruise logistics market, targeting the Baltic Sea, North Sea, and English Channel regions[32]. - The group entered Indonesia in 2023 and plans to open a new office in Cambodia in November 2023 to further expand its network[25]. - The company has established a new office in Cambodia in September 2023 to expand its business network in Southeast Asia[112]. - The company continues to expand its flagship warehouse in Shanghai to capitalize on future opportunities in the luxury retail sector[110]. - The company plans to expand its e-commerce presence through "嘉泓快遞" to capture market opportunities[188]. - The company has formed a partnership with a leading Chinese e-commerce platform to provide comprehensive e-commerce logistics solutions, enhancing its market positioning[114]. - The company operates 21 local branches across 15 countries and regions, including China, Hong Kong, and the United States[109]. Compliance and Accounting - The group has applied new and revised Hong Kong Financial Reporting Standards for the current accounting period[45]. - The company has adopted new accounting policies related to long-term service payments, which did not significantly impact the financial results for the current or prior periods[80]. - The company continues to implement strict control policies and has not engaged in speculative trading of debt securities or financial derivatives[146]. Employee and Operational Metrics - As of December 31, 2023, the group employed 821 staff, an increase from 678 staff as of December 31, 2022, with employee costs amounting to approximately HKD 328.6 million[33]. - The company has established 32 distribution centers with a total area of approximately 1,250,000 square feet as of December 31, 2023[11].

Financial Performance - The group's revenue decreased by 31.0% to HKD 1,016.7 million for the first half of 2023, compared to HKD 1,472.9 million in the same period of 2022[25]. - Gross profit fell by 21.0% to HKD 204.9 million, down from HKD 259.3 million year-on-year[25]. - Profit attributable to equity shareholders dropped by 74.4% to HKD 13.1 million, compared to HKD 51.2 million in the first half of 2022[25]. - The group recorded revenue of approximately HKD 1,016.7 million for the reporting period, a decrease of about 31.0% compared to HKD 1,472.9 million in the first half of 2022[31]. - Gross profit for the period was approximately HKD 204.9 million, down 21.0% from HKD 259.3 million in the first half of 2022, with a gross margin increase from 17.6% to 20.2% due to strong performance in the cruise logistics segment[31]. - Net profit attributable to equity shareholders was approximately HKD 13.1 million, a decline of about 74.4% from HKD 51.2 million in the first half of 2022[31]. - Operating profit decreased to HKD 36,091 from HKD 90,238, representing a decline of 60% year-over-year[123]. - Profit before tax for the six months was HKD 26,782, down 68.7% from HKD 85,413 in the previous year[123]. - Net profit for the period was HKD 13,453, a significant drop of 76.8% compared to HKD 57,966 in the same period last year[123]. - Basic and diluted earnings per share decreased to HKD 0.045 from HKD 0.189, reflecting a decline of 76.3%[123]. Revenue Breakdown - Revenue from the China office decreased by 32.3% to HKD 225.2 million, primarily due to a decline in freight rates and business volume[8]. - Revenue from the delivery and logistics segment was approximately HKD 199.8 million, an increase of about 2.3% compared to HKD 195.4 million in the same period of 2022, while gross profit decreased by approximately 42.0% to HKD 17.1 million[35]. - Revenue from the shipping agency services segment was approximately HKD 237.6 million, a decrease of about 54.2% compared to HKD 519.2 million in the first half of 2022[58]. - Gross profit from the shipping agency services segment was approximately HKD 43.1 million, down approximately 55.6% from HKD 97.0 million in the first half of 2022[58]. - Revenue from the air freight agency business was approximately HKD 381.9 million, down about 42.4% from HKD 663.2 million in the first half of 2022[156]. - Revenue from external customers in Hong Kong decreased to HKD 213,679 thousand from HKD 280,522 thousand, a decline of approximately 23.8%[194]. Operational Developments - The group has established a new office in Indonesia to cater to various potential industries, including textiles and automotive[21]. - The group continues to upgrade its flagship storage facilities in Shanghai to seize future market opportunities in China[26]. - The company plans to launch its e-commerce air freight export service in the second half of 2023, enhancing end-to-end logistics solutions for customers[96]. - The company aims to leverage its global business network to explore new market opportunities, particularly in e-commerce[96]. - The company has allocated approximately HKD 35.6 million for expansion in Hainan, Southeast Asia, and the UK, with a projected utilization date by June 2, 2024[148]. - An additional HKD 7.0 million is earmarked for the expansion and development of B2C business, expected to be utilized by November 28, 2024[148]. - The company is also investing HKD 3.0 million in recruiting professional talent for daily operations, with a similar expected utilization date of November 28, 2024[148]. Cash Flow and Financial Position - The group's operating cash flow decreased from approximately HKD -7.2 million on December 31, 2022, to HKD -31.1 million on June 30, 2023, with a current ratio slightly declining from 1.00 to 0.97[39]. - As of June 30, 2023, the group's cash and cash equivalents were approximately HKD 289.4 million, stable compared to HKD 289.4 million as of December 31, 2022[62]. - The group's outstanding bank loans and overdrafts were approximately HKD 300.0 million as of June 30, 2023, compared to HKD 286.9 million as of December 31, 2022[62]. - The group's debt-to-equity ratio was approximately -4.9% as of June 30, 2023, slightly improved from -5.1% as of December 31, 2022[62]. - Current assets decreased to HKD 927,713 from HKD 953,478, indicating a reduction in liquidity[127]. - Total liabilities as of June 30, 2023, were HKD 958,818, slightly down from HKD 960,686 at the end of 2022[127]. - Non-current liabilities increased to HKD 108,399 thousand as of June 30, 2023, from HKD 89,436 thousand at the end of 2022, representing an increase of approximately 21.2%[198]. - The company's total equity decreased to HKD 383,654 thousand from HKD 413,885 thousand, a decline of about 7.3%[198]. Strategic Initiatives - The group plans to leverage e-commerce growth opportunities through its proprietary platform CNShip4Shop, which introduced a new feature called "CNBuy" to cater to Asian consumers[55]. - The company plans to explore new niche markets and opportunities beyond luxury goods, fashion, and dining sectors to enhance competitive advantages and expand business scope[71]. - The company is focused on expanding its business in various sectors to capitalize on growth opportunities in international travel and luxury retail[95]. - The company plans to focus on expanding its logistics services and enhancing operational efficiency to improve profitability in the upcoming quarters[190]. - The company has invested in new technologies to streamline operations and improve service delivery, aiming for better customer satisfaction and market competitiveness[190]. Shareholder Information - The board declared an interim dividend of HKD 0.03 per share, totaling HKD 8,283,000 for the reporting period[74]. - As of June 30, 2023, the total number of shares available for allocation and issuance under the stock option plan is 25,000,000 shares[86]. - The company has not granted any shares under the share incentive plan during the reporting period[90]. - Liu Shiyou holds a controlled corporation interest of 158,480,222 shares, representing 57.4% of the company[99]. - The company has not granted, exercised, or canceled any rewards under the share incentive plan since its adoption[90]. - The company established a new office in Indonesia in the first half of 2023, leading to strong financial performance, and plans to open another office in Cambodia in the second half of 2023 to expand its network in Southeast Asia[160]. Compliance and Governance - The company has established an audit committee consisting of three independent non-executive directors to review financial performance and risk management[92]. - The company has adopted a share incentive plan to recognize and motivate eligible individuals, aiming to align their interests with the company's future development[129]. - The total number of shares that can be awarded under the share incentive plan shall not exceed 10% of the total issued shares at any time, with a maximum of 27,610,000 shares available for award as of the report date[130]. - The company has adopted a code of conduct for directors' securities transactions that meets or exceeds the standards set out in the listing rules[131].

Financial Performance - Total revenue for the six months ended June 30, 2023, was HKD 1,016,658,000, a decrease of 30.9% compared to HKD 1,472,856,000 for the same period in 2022[1] - The pre-tax profit for the six months ended June 30, 2023, was HKD 13,137,000, down from HKD 51,198,000 in the same period of 2022, representing a decline of 74.3%[6] - Basic earnings per share for the six months ended June 30, 2023, were HKD 0.045, compared to HKD 0.189 for the same period in 2022[6] - The total comprehensive income for the period was HKD 3.8 million, significantly lower than HKD 45.5 million in the same period last year[23] - Profit attributable to equity shareholders was approximately HKD 13.1 million, down about 74.4% from HKD 51.2 million in the first half of 2022[32] - Gross profit fell by 21.0% to HKD 204.9 million, down from HKD 259.3 million in the same period last year[93] Revenue Breakdown - The logistics and distribution segment recorded a revenue increase of approximately HKD 4.4 million, growing from HKD 195.4 million in the first half of 2022 to approximately HKD 199.8 million, a year-on-year growth of about 2.3%[32] - The freight forwarding segment, including air and sea freight forwarding, saw a revenue decline from approximately HKD 1,277.4 million in the first half of 2022 to about HKD 816.9 million, a decrease of approximately 36.0%[32] - Air freight agency services generated revenue of HKD 381,909,000, down 42.5% from HKD 663,212,000 in the previous year[42] - Sea freight agency services revenue decreased by 54.4% to HKD 237,564,000 from HKD 519,182,000[42] - The cruise logistics segment saw significant growth, with revenue increasing to HKD 197,412,000 from HKD 95,030,000, representing a 107.5% increase[42] Dividends and Shareholder Returns - The group declared and paid dividends of HKD 6,425,000 to non-controlling interests for the six months ended June 30, 2023, an increase of 142.5% from HKD 2,651,000 in the same period of 2022[8] - The board declared an interim dividend of HKD 0.03 per ordinary share for the reporting period[32] - The board has declared an interim dividend of HKD 0.03 per ordinary share, totaling HKD 8,283,000, expected to be paid on November 1, 2023[137] Assets and Liabilities - Trade receivables, net of impairment losses, were HKD 366,963,000 as of June 30, 2023, down 21.1% from HKD 464,945,000 as of December 31, 2022[11] - The group reported a total of HKD 240,097,000 in trade payables as of June 30, 2023, a decrease of 10.1% from HKD 266,919,000 as of December 31, 2022[19] - The group’s total liabilities decreased to HKD 329,115,000 as of June 30, 2023, from HKD 347,360,000 as of December 31, 2022[19] - As of June 30, 2023, the total current assets amounted to HKD 927.7 million, while total current liabilities were HKD 958.8 million, resulting in a net current liability of HKD 31.1 million[39] - Non-current assets totaled HKD 523.2 million as of June 30, 2023, compared to HKD 510.5 million as of December 31, 2022[24] - The net asset value decreased from HKD 413.9 million as of December 31, 2022, to HKD 383.7 million as of June 30, 2023[36] Operational Highlights - The group employed 828 employees as of June 30, 2023, an increase of 23.6% from 670 employees as of June 30, 2022[15] - The group recorded a net cash inflow from operating activities of HKD 45,647,000 for the six months ended June 30, 2023[46] - As of June 30, 2023, the group had cash and cash equivalents of HKD 305,610,000[46] - The group has committed capital expenditures of approximately HKD 3.9 million for the expansion of a customized distribution center in Shanghai as of June 30, 2023[105] Strategic Initiatives - The group anticipates further opportunities in Southeast Asia due to the implementation of the Regional Comprehensive Economic Partnership and the Belt and Road Initiative[75] - The company aims to explore new niche markets beyond luxury goods, fashion, and dining to accelerate overall growth and development[134] - The company is set to launch its e-commerce air freight export service in the second half of 2023, enhancing logistics solutions for customers[135] - The company established a new office in Indonesia in the first half of 2023 and plans to open another in Cambodia to enhance its regional network[133] Governance and Compliance - The company has maintained compliance with corporate governance codes throughout the reporting period[127] - The board consists of both executive and independent non-executive directors, ensuring a diverse governance structure[141]

Revenue and Financial Performance - Revenue increased from HKD 2,673.4 million to HKD 2,788.0 million, representing a year-on-year growth of 4.3%[13] - The company recorded revenue of approximately HKD 2,788.0 million for the fiscal year 2022, representing a year-on-year growth of 4.3% compared to HKD 2,673.4 million in 2021[29] - Gross profit increased by 2.8% to approximately HKD 516.8 million in fiscal year 2022, up from HKD 502.7 million in 2021[29] - The company's net profit attributable to equity shareholders rose by 3.9% to approximately HKD 86.6 million in fiscal year 2022, compared to HKD 83.4 million in 2021[29] - Revenue from the China segment decreased by 33.4% to HKD 643.4 million in fiscal year 2022, down from HKD 966.0 million in 2021[23] - The Italy regional subsidiary achieved a revenue increase of 26.1% to HKD 949.6 million in fiscal year 2022, compared to HKD 753.0 million in 2021[24] - Revenue from the newly acquired Allport Cruise group increased by 43.1% to USD 43.8 million in fiscal year 2022[27] - The company expanded its operations in Japan and South Korea, with revenues increasing by 54.7% to HKD 115.4 million and by 12.8% to HKD 57.3 million, respectively[26] - The air freight agency business generated revenue of approximately HKD 1,246.4 million in fiscal year 2022, a decrease of about 23.2% from HKD 1,623.6 million in fiscal year 2021[33] - The logistics and distribution services segment recorded revenue of approximately HKD 400.3 million, an increase of about 2.6% from HKD 390.0 million in fiscal year 2021[35] - The sea freight agency business saw revenue rise to approximately HKD 857.6 million, a 30.0% increase from HKD 659.8 million in fiscal year 2021, driven by significant growth in high-end fashion product imports to Italy[36] - The cruise logistics segment generated revenue of approximately HKD 283.7 million and gross profit of HKD 77.1 million following the acquisition of Allport Cruise Group[39] Strategic Initiatives and Market Expansion - The company plans to expand its presence in Southeast Asia, particularly in Vietnam and Thailand, while exploring opportunities in emerging markets like Indonesia and Bangladesh[16] - The company aims to strengthen its position in the Greater China market while benefiting from economic recovery in Europe and the United States[16] - The company established its first regional subsidiary in Vietnam during fiscal year 2022 to capitalize on emerging market opportunities[26] - The company aims to enhance its Southeast Asia business network, having established three local subsidiaries in Vietnam, Malaysia, and Thailand, and plans to set up new subsidiaries in Indonesia and Bangladesh[55] - The company targets to establish its first subsidiary in the Netherlands to strengthen its European market presence and improve operational efficiency[56] - The company successfully acquired Allport Cruise Group, expanding its business network in North America and entering the niche cruise logistics industry[59] Sustainability and Corporate Responsibility - The company received multiple awards for its sustainability efforts, including the "Caring Company" logo and the 2022 United Nations Sustainable Development Goals Achievement Award[15] - The company launched three new electric vehicles in the 2022 fiscal year, aiming to enhance green transportation and reduce carbon footprint by 126% annually[15] - The company is committed to enhancing service quality and user experience through advanced technology and a diversified customer base[16] Cash Flow and Financial Position - The company's operating cash inflow for fiscal year 2022 was approximately HKD 162.9 million, down from HKD 190.8 million in fiscal year 2021[42] - As of December 31, 2022, the company's cash and cash equivalents were approximately HKD 298.2 million, a slight increase of about 1.0% from HKD 295.1 million a year earlier[42] - The company's current ratio decreased from approximately 1.36 times to 1.00 times due to the acquisition of Allport Cruise, with current liabilities including HKD 217.1 million related to the acquisition[41] - The capital debt ratio as of December 31, 2022, was approximately 92.5%, up from 59.0% a year earlier, indicating increased leverage following the acquisition[42] - As of December 31, 2022, the group had a maximum liability under bank financing of HKD 267.1 million, an increase from HKD 152.3 million as of December 31, 2021[48] Corporate Governance and Management - The board of directors includes Liu Shiyou (Chairman), Yan Tianrong (CEO), and several independent non-executive directors[101][102] - The company emphasizes compliance with legal and regulatory requirements, with policies regularly reviewed for effectiveness[89] - The company’s management team has extensive experience in finance and operations, contributing to its overall financial management[74] - The board consists of executive directors, non-executive directors, and independent non-executive directors, ensuring a balance of power and independent judgment[161] - The roles of the chairman and CEO are held by different individuals to maintain a balance of power[164] - The company has established a securities trading code that meets or exceeds the standard requirements, with all directors confirming compliance during the fiscal year 2022[169] - The company has implemented a board nomination policy outlining the standards and procedures for evaluating candidates[179] - The governance committee is responsible for establishing the company's purpose, values, and strategy, ensuring alignment with corporate culture[186] Shareholder Information and Dividends - The board proposed a final dividend of HKD 0.10 per share for the fiscal year 2022, totaling HKD 27.61 million, down from HKD 0.12 per share in the previous year[62] - The company has a stable and sustainable dividend policy, which is subject to board discretion and shareholder approval[82] - The proposed final dividend for the fiscal year 2022 will be subject to approval at the annual general meeting, with share transfer registration suspended from June 20, 2023, to June 26, 2023[155] Risk Management and Compliance - The board is responsible for assessing and determining the nature and extent of risks the company is willing to take in achieving strategic objectives[193] - The company has implemented various risk management procedures and guidelines to manage risks across key business processes[193] - The risk and compliance committee monitored sanction risks and the implementation of related internal control procedures during the 2022 fiscal year[188] - The company adopted an anti-corruption policy to promote and support anti-corruption laws and regulations[196] Employee and Director Information - As of December 31, 2022, the company employed 678 staff, with employee costs amounting to approximately HKD 291.19 million, an increase from HKD 270.49 million in the previous fiscal year[60] - The company has established several defined contribution and defined benefit retirement plans[112] - The service contracts for executive directors Mr. Yan and Ms. Chen are set for a term of three years from the listing date[108] - The company has received annual confirmations of independence from all independent non-executive directors[163] Related Party Transactions - The company has entered into several related party transactions during the fiscal year 2022[117] - The company has no major contracts with its controlling shareholders or their subsidiaries during the fiscal year 2022, except for the Allport Cruise acquisition[141]

Revenue Growth - The company recorded a revenue growth of approximately 4.3%, increasing from HKD 2,673.4 million in FY2021 to HKD 2,788.0 million in FY2022[3] - The freight forwarding segment, including air and sea freight, achieved a revenue increase of about 4.6%, from HKD 2,283.4 million in FY2021 to HKD 2,387.7 million in FY2022, with the newly established cruise logistics business contributing HKD 283.7 million[3] - The distribution and logistics segment saw a revenue growth of approximately 2.6%, rising from HKD 390.0 million in FY2021 to HKD 400.3 million in FY2022[3] - The group recorded revenue of HKD 2,788.0 million for the fiscal year 2022, a year-on-year increase of 4.3% from HKD 2,673.4 million in 2021[45] - The company reported external customer revenue of HKD 2,787.97 million for the fiscal year 2022, compared to HKD 2,673.42 million in 2021, reflecting a growth of approximately 4.3%[126] Profitability - The net profit attributable to equity shareholders for FY2022 was approximately HKD 86.6 million, representing an increase of about 3.9% compared to HKD 83.4 million in FY2021[3] - The operating profit for FY2022 was HKD 160.5 million, down from HKD 177.0 million in FY2021[5] - The total comprehensive income for FY2022 was HKD 74.6 million, compared to HKD 119.1 million in FY2021[6] - Gross profit increased by 2.8% to HKD 516.8 million in 2022, compared to HKD 502.7 million in 2021[45] - The profit attributable to equity shareholders was approximately HKD 86.6 million, up by about 3.9% from HKD 83.4 million in fiscal year 2021[72] - The company's pre-tax profit for the year ended December 31, 2022, was HKD 291,190,000, compared to HKD 270,487,000 in 2021, representing an increase of approximately 7.7%[137] Dividends - The company proposed a final dividend of HKD 0.10 per share for FY2022, pending approval at the upcoming annual general meeting[3] - The board proposed a final dividend of HKD 0.10 per share, totaling approximately HKD 27,610,000, subject to shareholder approval[31] - The board proposed a final dividend of HKD 0.10 per share for fiscal year 2022, totaling HKD 27,610,000, down from HKD 0.12 per share in fiscal year 2021[93] - The company's dividend distribution included a final dividend of HKD 0.12 per share and a special dividend of HKD 0.09 per share, totaling HKD 57,981,000 paid on June 29, 2022[165] Assets and Liabilities - Non-current assets increased to HKD 510.5 million in FY2022 from HKD 282.6 million in FY2021[7] - Current liabilities rose to HKD 960.7 million in FY2022 from HKD 726.0 million in FY2021[8] - The company's total equity decreased to HKD 413.9 million in FY2022 from HKD 464.5 million in FY2021[8] - As of December 31, 2022, the total current assets of the group amounted to HKD 953,478,000, while total current liabilities were HKD 960,686,000, resulting in a net current liability of HKD 7,208,000[13] - The group reported a goodwill adjustment from the acquisition of Allport Cruise, increasing from HKD 175.986 million to HKD 202.276 million[68] Acquisitions - The group completed the acquisition of Allport Cruise Group in March 2022, which focuses on providing cruise logistics services[33] - The acquisition of Allport Cruise resulted in a revenue increase of 43.1% to USD 43.8 million for the fiscal year 2022[164] - The total amount payable for the acquisition of Allport Cruise was approximately HKD 240,253,000, with HKD 217,085,000 classified as current liabilities[154] - The acquisition of Allport Cruise Group was valued at approximately HKD 185,840,000, with payment to be made through the issuance of 20,200,000 shares at an issue price of HKD 9.2 per share[174] Operational Efficiency - The group aims to enhance and expand its logistics and distribution business, with a total of HKD 87.4 million allocated for this purpose[63] - The group established three block space agreements with airlines during fiscal year 2022 to secure capacity[74] - The company aims to explore and apply new equipment and technologies to improve operational efficiency in response to increasing customer demand[90] - The company will continue to invest in e-commerce to create new revenue streams by adding new features, entering new markets, and launching promotional activities to expand its user base[196] Market Expansion - The group plans to establish its first branch in the Netherlands to capture post-pandemic opportunities and enhance regional connectivity[89] - The company anticipates a significant market expansion into Europe and North America[101] - The company has successfully penetrated developed markets such as Italy, South Korea, and Japan, with growth momentum expected to accelerate as global tourism recovers[195] - To capitalize on emerging opportunities, the company plans to leverage its existing business networks in Europe (Italy) and the United States (Miami) to quickly enter neighboring potential markets[195] Employee and Staffing - The company employed 678 staff as of December 31, 2022, an increase from 622 staff in the previous year, with employee costs amounting to approximately HKD 291.19 million[105] - The company has adopted stock option and share reward plans to incentivize employees contributing to business achievements[105] Risks and Challenges - Despite a positive short-term outlook for the logistics industry, geopolitical conflicts and high inflation rates pose uncertainties for the global economy, prompting the company to implement strict cost control measures[102] - The company faced foreign exchange risks primarily from fluctuations in the Renminbi and US Dollar, with no specific hedging policies in place[188]