Fundraising and Utilization - The company raised approximately HKD 35.6 million from the first subscription of 5,000,000 shares completed in June 2021[2] - The net proceeds from the second subscription of 1,100,000 shares completed in December 2021 amounted to about HKD 10.0 million[2] - As of December 31, 2021, the company has utilized HKD 2.0 million from the first subscription proceeds, leaving HKD 33.6 million unutilized[3] - The board confirmed that the intended use of the raised funds has not significantly changed or been delayed since the previous disclosures[10] Business Expansion Plans - The company plans to expand its business and local presence in Hainan, Southeast Asia, and the UK using the proceeds from the first subscription[3] - The company intends to invest HKD 7.0 million in expanding and developing its B2C business by January 30, 2024[9] Talent Recruitment - The company aims to recruit professional talents for daily operations management with an expected expenditure of HKD 3.0 million by January 30, 2024[8]

Revenue Growth - The group reported a revenue increase in Italy from HKD 262.0 million in the first half of 2021 to HKD 571.2 million in the reporting period, representing a growth of 118.0%[18]. - The group recorded revenue of approximately HKD 1,472.9 million for the reporting period, representing a year-on-year growth of about 44.8% compared to HKD 1,017.2 million in the first half of 2021[20]. - Total revenue for the six months ended June 30, 2022, was HKD 1,472,856 thousand, a 45% increase from HKD 1,017,227 thousand in the same period of 2021[134]. - Revenue from air freight agency services was HKD 700,330 thousand, up 18% from HKD 593,233 thousand in the same period of 2021[134]. - Revenue from sea freight agency services was HKD 550,105 thousand, a 137% increase from HKD 231,499 thousand in the same period of 2021[134]. - Revenue from distribution and logistics services was HKD 222,421 thousand, an increase from HKD 192,495 thousand in the same period of 2021[134]. - Revenue from external customers in Italy significantly increased to HKD 571,198,000 in the first half of 2022, compared to HKD 261,975,000 in the same period of 2021, reflecting a growth of approximately 118%[148]. Profitability - The gross profit for the reporting period was approximately HKD 259.3 million, an increase of 21.1% from HKD 214.1 million in the first half of 2021[20]. - The net profit attributable to equity shareholders was approximately HKD 51.2 million, reflecting a year-on-year increase of about 45.5% from HKD 35.2 million in the first half of 2021[20]. - The operating profit for the same period was HKD 90,238,000, compared to HKD 70,572,000 in 2021, reflecting an increase of about 28%[103]. - The profit for the period was HKD 57,966,000, up from HKD 47,315,000 in the previous year, indicating a growth of approximately 22%[103]. - Basic and diluted earnings per share for the period were HKD 18.9, compared to HKD 14.0 in 2021, marking an increase of about 35%[103]. Acquisitions and Expansion - The acquisition of Allport Cruise Logistics Inc. was completed in March 2022, expanding the group's operations into the U.S. cruise logistics market, which is expected to enhance profitability due to its niche nature[14]. - The acquisition of Allport Cruise Group contributed to revenue and profit growth, enhancing the group's operational capabilities in the logistics sector[20]. - Following the successful acquisition of Allport Cruise Group in March 2022, the company aims to establish a presence in North America, specifically in Canada and Mexico[59]. - The company has adopted a share option scheme to reward selected participants contributing to its business success[83]. Operational Developments - The group operates in 19 cities across 12 countries, including China, Hong Kong, Italy, and the U.S., and has established partnerships with over 100 freight forwarding businesses globally[12]. - The logistics industry faced significant challenges due to COVID-19, particularly during the two-month lockdown in Shanghai, but the group adapted by relocating shipping operations to other cities[13]. - The group has established a second business hub in Southeast Asia with a new branch in Vietnam, following its operations in Malaysia[18]. - The group continues to integrate resources in Europe after acquiring CN Logistics S.R.L. and CN Logistics S.A., enhancing coordination and attracting new clients[18]. - The group expects continued growth in demand for cruise logistics and dry dock project shipments in the second half of 2022 due to the recovery of the global tourism industry[14]. Financial Position - As of June 30, 2022, the group's cash and cash equivalents amounted to approximately HKD 338.0 million, an increase of about 14.5% compared to HKD 295.1 million as of December 31, 2021[33]. - The group's current assets decreased from approximately HKD 262.3 million as of December 31, 2021, to HKD 35.2 million as of June 30, 2022, impacting the current ratio which fell from about 1.36 to 1.03[32]. - The group's outstanding bank loans and overdrafts were approximately HKD 219.6 million, up from HKD 161.6 million as of December 31, 2021[33]. - The group's debt-to-equity ratio was approximately 76.8% as of June 30, 2022, compared to 59.0% as of December 31, 2021[33]. - The company reported a cash balance of HKD 338,000 thousand as of June 30, 2022, compared to HKD 235,601 thousand at the same date in 2021[125]. Sustainability Initiatives - The group expects a reduction of 6,091 tons in carbon footprint this year, with a year-on-year improvement in emission reduction efficiency of 126% due to the expansion of its electric vehicle fleet[19]. - The company is focused on expanding green logistics services, including increasing its electric vehicle fleet and installing solar panels at suitable overseas warehouses[61]. Shareholder Information - The board declared an interim dividend of HKD 0.13 per share, totaling HKD 35.9 million, expected to be paid on September 30, 2022[66]. - The company declared a total dividend of HKD 56,690 thousand for the year, which was approved and paid on June 29, 2022[118]. - The company declared an interim dividend after the reporting period, with further details disclosed in note 15(b)[199]. Compliance and Governance - The company has adopted the corporate governance code as per the listing rules and believes it has complied with the code provisions during the reporting period[90]. - The company has established an audit committee composed of independent non-executive directors to review the financial statements and accounting practices[95].

Financial Performance - For the fiscal year 2021, CN Logistics reported revenue of HKD 2,673.4 million, an increase of 32.3% compared to the previous year, and a net profit of HKD 123.3 million, up 50.4% year-on-year[24]. - The company recorded revenue of approximately HKD 2,673.4 million for the fiscal year 2021, representing a growth of about 32.3% compared to HKD 2,020.6 million in fiscal year 2020[37]. - Gross profit for fiscal year 2021 was approximately HKD 502.7 million, an increase of 27.5% from HKD 394.3 million in fiscal year 2020[37]. - Net profit attributable to equity shareholders for fiscal year 2021 was approximately HKD 83.4 million, reflecting a growth of about 50.2% compared to HKD 55.5 million in fiscal year 2020[37]. - Air freight agency business recorded revenue of approximately HKD 1,623.6 million in FY2021, an increase of about 14.0% compared to FY2020's HKD 1,424.1 million[41]. - The logistics and distribution services segment generated revenue of approximately HKD 390.0 million in FY2021, up about 12.8% from HKD 345.6 million in FY2020[46]. - The sea freight agency segment saw revenue soar to approximately HKD 659.8 million in FY2021, a significant increase of about 163.0% from HKD 250.9 million in FY2020[47]. - The gross profit for the sea freight segment increased by approximately 141.4%, from HKD 75.3 million in FY2020 to HKD 181.8 million in FY2021[47]. Strategic Expansion - The company expanded its operations by acquiring the remaining shares of two non-wholly owned subsidiaries in Italy and Switzerland, aiming to establish a business hub in Europe[24]. - The establishment of a regional office in Malaysia in May 2021 and a subsidiary in Vietnam in January 2022 aims to tap into the Southeast Asian market, which is a key overseas market for the company[35]. - The company plans to integrate its Italian and Swiss subsidiaries to strengthen its business hub in Europe, leveraging local resources and logistics infrastructure[31]. - The acquisition of Allport Cruise Group marks a strategic entry into cruise logistics, enhancing the company's service offerings and expanding its customer base[27]. - The company continues to seek opportunities for potential acquisitions to expand its operations and local business[77]. Market Positioning - CN Logistics was included in the MSCI Hong Kong Micro Cap Index and the FTSE Global Equity Index Series, reflecting its strong market positioning[21]. - The overall economic recovery in China, with a GDP growth of 8.1%, contributed to the strong sales rebound in luxury goods and wine products[24]. - The company expanded its network and achieved significant performance in China and Italy, capitalizing on the growing demand for luxury and fashion products[30]. Sustainability and Corporate Governance - In 2021, CN Logistics joined the Business Environment Council (BEC) to fulfill its commitment to decarbonization and sustainable development[24]. - The company emphasizes sustainable development and green supply chains as a cornerstone of its core strategy[24]. - The company has been recognized for its outstanding corporate governance and contributions to society, receiving various awards and certifications[24]. - The company has established compliance and risk management policies to oversee adherence to significant legal and regulatory requirements[122]. - The board of directors is committed to enhancing corporate governance and risk compliance through various committees[93]. Employee and Shareholder Relations - The company views employees as its most valuable asset and aims to reward outstanding performance with competitive compensation and career development opportunities[119]. - The company aims to provide stable and sustainable returns to shareholders through its dividend policy, which is subject to board discretion and shareholder approval[113]. - The board will continuously review the company's dividend policy, with no guarantee of dividends being paid in any specific amount or period[113]. - The company reported a final dividend of HKD 0.12 per share for the fiscal year 2021, down from HKD 0.15 in 2020, along with a special dividend of HKD 0.09 per share, pending shareholder approval[110]. E-commerce and Service Diversification - The company launched China's first cross-border e-commerce platform for wine, enhancing its service offerings in the e-commerce sector[13]. - The company launched two e-commerce platforms in the second half of fiscal year 2021, diversifying its revenue sources through cross-border transactions in premium wines[26]. - The company aims to expand its B2C delivery services to better serve brand clients, responding to the accelerated growth of e-commerce due to the COVID-19 pandemic[26]. - The company aims to diversify its revenue sources by launching a B2C platform for consolidated shipments in the first half of 2022, enhancing its service offerings in more regions and products[77]. Financial Commitments and Liabilities - As of December 31, 2021, the company's operating cash flow was approximately HKD 190.8 million, down from HKD 221.1 million in FY2020[51]. - The company's current assets as of December 31, 2021, were approximately HKD 262.3 million, a decrease of about 3.0% from HKD 270.4 million on December 31, 2020[51]. - The capital expenditure commitments for the expansion of the customized distribution center in Shanghai amounted to approximately HKD 34.2 million as of December 31, 2021[54]. - The capital debt ratio as of December 31, 2021, was approximately 59.0%, up from 52.7% on December 31, 2020[51]. - As of December 31, 2021, the group had a maximum bank financing liability of HK$152.3 million, up from HK$83.4 million in 2020[61]. Related Party Transactions - The company confirmed compliance with the disclosure requirements of Chapter 14A of the Listing Rules regarding related party transactions[188]. - The independent non-executive directors confirmed that the related party transactions were conducted on normal commercial terms and were fair and reasonable[187]. - The company had no significant contracts with its controlling shareholders or their subsidiaries during the fiscal year 2021, except for the Allport Cruise acquisition[189].

Financial Performance - The group reported a strong performance for the six months ending June 30, 2021, with a focus on integrated logistics services, particularly in the fashion and wine sectors[9]. - The company recorded revenue of approximately HKD 1,017.2 million for the reporting period, representing a year-on-year increase of about 30.1% compared to HKD 782.1 million in the first half of 2020[15]. - Gross profit for the period was approximately HKD 214.1 million, reflecting a year-on-year growth of 24.8% from HKD 171.5 million in the same period last year[15]. - Net profit attributable to equity shareholders was approximately HKD 35.2 million, a significant increase of about 48.5% compared to HKD 23.7 million in the first half of 2020[15]. - Operating profit increased to HKD 70,572, up 30.3% from HKD 54,165 in the previous year[79]. - Total comprehensive income for the period was HKD 46,744, up from HKD 32,412 in 2020[82]. - The company reported a net other income of HKD 2,238,000 for the period[110]. - The total tax expense for the six months ended June 30, 2021, was HKD 19,389,000, compared to HKD 15,842,000 in the previous year[116]. Revenue Breakdown - The air freight forwarding segment accounted for approximately 58.3% of total revenue, with earnings of about HKD 593.2 million, up 13.8% from HKD 521.4 million in the previous year[19]. - The logistics and distribution services segment generated revenue of approximately HKD 192.5 million, marking a 40.3% increase from HKD 137.2 million in the same period last year[22]. - The sea freight forwarding segment saw revenue rise to approximately HKD 231.5 million, an increase of about 87.4% from HKD 123.4 million in the first half of 2020[23]. - Revenue from air freight services increased to HKD 593,233,000, a rise of 13.8% compared to HKD 521,437,000 in 2020[98]. - Revenue from sea freight services surged to HKD 231,499,000, a significant increase of 87.7% from HKD 123,440,000 in the previous year[98]. - Revenue from logistics and distribution services grew to HKD 192,495,000, up 40.4% from HKD 137,176,000 in 2020[98]. Strategic Initiatives - A strategic cooperation agreement was established with JD Logistics, integrating overseas logistics resources with JD's comprehensive logistics infrastructure in China, expected to create synergies in air freight services[10]. - The company plans to launch a cross-border wine e-commerce platform targeting the Chinese market, leveraging partnerships with JD Logistics[39]. - A memorandum of understanding was signed for the proposed acquisition of remaining shares in CN Logistics SA and CN Logistics S.R.L., aiming to strengthen the company's strategic position in Europe[41]. - The company plans to establish a new office in Germany to capitalize on post-pandemic recovery opportunities in the logistics sector[41]. - The company is actively exploring opportunities in high-margin sectors such as jewelry and watch logistics, as well as air freight services for fresh food imports from Japan, Italy, and Thailand[44]. Sustainability Efforts - The introduction of green logistics solutions has received enthusiastic responses from over 30 brand clients, reflecting the growing importance of sustainability in the industry[12]. - The company has collaborated with the non-profit organization Redress to provide integrated logistics services for its fashion product recycling program in China, Hong Kong, and Macau[12]. - The company has launched a one-stop green logistics solution for international luxury and high-end fashion brands, focusing on resource recycling and new energy vehicle delivery services[43]. - The company aims to expand its green logistics services beyond Hong Kong and China, responding to increasing client requests for international collaboration[43]. - The company is committed to reducing waste and promoting resource regeneration in its daily operations, aligning with rising public environmental awareness[43]. - The company has established partnerships with local recycling contractors to enhance resource utilization and minimize waste generation[43]. Human Resources - As of June 30, 2021, the company employed 612 staff, an increase from 596 staff in the previous year, indicating a growth in human resources[45]. Shareholder Information - The board declared an interim dividend of HKD 0.09 per share, totaling HKD 22,950,000, to be paid on September 30, 2021[49]. - As of June 30, 2021, major shareholders include Liu Shiyou with a 64.7% stake and Yan Tianrong with an 8.3% stake in the company[52]. - CS Logistics holds 164,980,222 shares, representing 64.7% of the total shares[64]. - Ngan Au Kei Yee holds 21,241,203 shares, representing 8.3% of the total shares[64]. Financial Position - The company's cash and cash equivalents were approximately HKD 235.6 million as of June 30, 2021, a decrease of about 7.7% from HKD 255.3 million at the end of 2020[26]. - The company's current ratio increased slightly from approximately 1.56 times at the end of 2020 to about 1.61 times as of June 30, 2021[24]. - The asset-to-liability ratio was approximately 50.9% as of June 30, 2021, down from 52.7% at the end of 2020[26]. - The company's retained earnings as of June 30, 2021, were HKD 130,101,000, showing a stable financial position[90]. - The company’s equity attributable to shareholders increased to HKD 368,635,000, demonstrating growth in shareholder value[90]. Compliance and Governance - The company has complied with the corporate governance code during the reporting period[70]. - The audit committee, composed of independent non-executive directors, reviewed the unaudited consolidated financial statements[72]. - The chairman of the company is Liu Shiyou, who confirmed compliance with the standards of the code of conduct for securities transactions[72]. Capital and Financing - The maximum liability under bank financing as of June 30, 2021, was HKD 93.0 million, an increase from HKD 83.4 million as of December 31, 2020[30]. - The company reported bank loans and overdrafts of HKD 100,594,000 as of June 30, 2021, an increase from HKD 88,753,000 as of December 31, 2020, indicating a growth of approximately 13.5%[130]. - The company maintained compliance with financial covenants related to its bank financing as of June 30, 2021, with no breaches reported[131].

Financial Performance - For the fiscal year 2020, the company reported a revenue of HKD 2,020.6 million, representing a year-on-year growth of 36.2%[7] - The net profit for the same period reached HKD 82.0 million, marking an impressive increase of 84.1% compared to the previous year[7] - The gross profit for fiscal year 2020 was approximately HKD 394.3 million, an increase of 28.5% from HKD 306.8 million in fiscal year 2019[16] - Adjusted net profit attributable to equity shareholders for fiscal year 2020 was approximately HKD 81.0 million, reflecting a significant increase of about 152.3% from HKD 32.1 million in fiscal year 2019[16] - The air freight forwarding business accounted for approximately 70.5% of the total revenue in fiscal year 2020, up from 61.8% in fiscal year 2019[21] - Revenue from the air freight forwarding segment was approximately HKD 1,424.1 million in fiscal year 2020, marking a growth of about 55.3% from HKD 917.0 million in fiscal year 2019[22] - The division's revenue for the fiscal year 2020 was approximately HKD 345.6 million, an increase of about 10.2% from HKD 313.7 million in fiscal year 2019[24] Business Expansion and Diversification - The company successfully entered the personal protective equipment market, transporting a significant volume of medical gloves to the UK, utilizing over 100 charter flights[7] - The company is expanding its automated distribution center in Shanghai, which is expected to be completed by February 2021, to enhance processing capacity[10] - The company plans to launch two e-commerce platforms in the second half of the year to facilitate cross-border transactions of quality wines[10] - The company aims to strengthen its leadership position in the high-end fashion logistics market, capitalizing on the strong growth of luxury goods sales in China[10] - The company is exploring opportunities in the B2C delivery sector, driven by the accelerated growth of e-commerce due to the pandemic[10] - The company has diversified its business scope by entering the logistics service for personal protective equipment, which is expected to continue generating demand[7] - The company is diversifying its revenue sources by exploring new sectors, including medical logistics, which gained traction during the pandemic, and is also looking into high-margin opportunities in jewelry and fresh food logistics[45] Operational Efficiency and Cost Control - The company has implemented effective cost control measures and is focused on improving employee efficiency[18] - The group plans to enhance and expand its logistics and distribution business, with HKD 63.1 million allocated for this purpose, of which HKD 29.4 million has been utilized as of December 31, 2020[37] Market Position and Customer Base - The company is in discussions with multiple fashion brands to expand its customer base and promote organic growth[10] - The company has a network of over 100 freight forwarding partners, covering more than 100 countries globally, which helps mitigate operational risks[15] - The customer base includes high-end fashion retailers, brand owners, and wine wholesalers and retailers, focusing on quality air and sea freight services[78] Shareholder and Corporate Governance - The company issued 53,700,000 ordinary shares at a price of HKD 2.66 per share, raising approximately HKD 87.4 million net after expenses[67] - The board proposed a final dividend of HKD 0.15 per ordinary share, totaling approximately HKD 37.5 million, subject to shareholder approval[71] - The company has adopted a share option scheme on September 17, 2020, allowing for the issuance of up to 25,000,000 shares, representing 10% of the issued share capital[84] - The company has established compliance and risk management policies to ensure adherence to significant legal and regulatory requirements[80] - The board of directors is responsible for leading, controlling, and managing the company, ensuring effective operation and growth to enhance shareholder value[157] - The board consists of three executive directors and three independent non-executive directors, ensuring compliance with listing rules regarding independence[158] Risk Management and Internal Controls - The board is responsible for evaluating the effectiveness of the risk management and internal control systems, which are designed to manage rather than eliminate risks[190] - The company has established multiple risk management procedures and guidelines, including self-assessments to ensure compliance with control policies[191] - The internal audit function checks accounting practices and significant controls, providing results and improvement suggestions to the audit committee[193] Environmental and Social Responsibility - The company is committed to environmental protection and continues to implement projects aimed at improving environmental management[143] Communication and Investor Relations - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of business performance and strategies[196] - The company has established a website (www.cnlogistics.com.hk) as a communication platform for shareholders and investors, providing information on business development and operations[197]