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]