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]

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].