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].

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]