Core Insights - The Chinese e-commerce logistics market is experiencing rapid growth, becoming a key driver for industrial upgrades and consumption growth in the digital economy era, with a projected market size of 1.4 trillion yuan in 2024, reflecting a year-on-year growth of 13.8% [1][14] E-commerce Logistics Overview - E-commerce logistics refers to the supply chain system that provides comprehensive services such as warehousing, sorting, transportation, delivery, and returns for e-commerce transactions, aiming to efficiently connect sellers and consumers [1] E-commerce Logistics Classification - E-commerce logistics can be classified based on service objects (B2C, B2B, C2C), operational models (self-operated, third-party, crowdsourced, cross-border), and delivery timeliness (instant delivery, same-day/next-day delivery, standard delivery) [2][3] Development History of E-commerce Logistics in China - The industry has evolved from traditional delivery methods to intelligent services, with significant growth from 2008 to 2015 due to the explosion of e-commerce platforms, followed by a consolidation phase from 2016 to 2020, and entering a high-quality development phase driven by innovation since 2021 [4] Relevant Policies for E-commerce Logistics - Various policies have been introduced to support the e-commerce logistics sector, focusing on digital empowerment, network optimization, and green transformation, which are essential for the industry's high-quality development [6][7] E-commerce Logistics Industry Chain - The industry has formed a complete value chain, including upstream logistics infrastructure, intelligent devices, and technology service providers, with core operational links involving comprehensive logistics service providers and specialized service providers [8] Current Status of E-commerce Logistics Industry - The online retail market in China has shown steady growth, with online retail sales projected to reach 15.52 trillion yuan by 2024, reflecting a compound annual growth rate of 7.19% [10] Competitive Landscape of E-commerce Logistics Industry - The industry features a tiered competitive structure, with leading companies like JD Logistics and SF Express dominating the high-end market, while the second tier includes the "Tongda" system (ZTO, Yunda, YTO) focusing on cost advantages [16][17] Key Enterprises - SF Express reported a revenue of 284.4 billion yuan in 2024, with a year-on-year growth of 10.1%, while JD Logistics achieved a revenue of 182.8 billion yuan, reflecting a 10% increase [18][20] Future Trends in E-commerce Logistics - The industry is expected to focus on service quality enhancement, accelerated digital transformation, green low-carbon initiatives, and deeper global supply chain integration, driven by technological innovation and evolving consumer demands [22][25][26]

Core Viewpoint - ST墨龙 reported a significant increase in revenue but a drastic decline in net profit for Q1 2025, indicating potential operational challenges despite revenue growth [1][3]. Financial Performance - The company's total revenue for Q1 2025 was 291 million yuan, ranking 73rd among peers, with a year-on-year increase of 97.78 million yuan, representing a 50.51% growth [1]. - The net profit attributable to shareholders was 5.42 million yuan, ranking 128th among peers, showing a decrease of 211 million yuan compared to the same period last year, a decline of 97.50% [1]. - Operating cash flow was 381 million yuan, ranking 4th among peers, with an increase of 384 million yuan year-on-year [1]. Profitability and Efficiency Ratios - The latest asset-liability ratio stood at 79.59%, ranking 186th among peers, with a slight decrease of 0.09 percentage points from the previous quarter but an increase of 1.06 percentage points from the same period last year [3]. - The gross profit margin was 9.33%, ranking 180th among peers, with an increase of 5.30 percentage points from the previous quarter and 6.40 percentage points from the same period last year [3]. - Return on equity (ROE) was 1.09%, ranking 94th among peers, reflecting a decrease of 32.70 percentage points year-on-year [3]. - The diluted earnings per share were 0.01 yuan, ranking 147th among peers, down by 0.27 yuan from the same period last year, a decline of 97.50% [3]. - The total asset turnover ratio was 0.12 times, ranking 52nd among peers, with an increase of 0.05 times year-on-year, representing an 82.09% increase [3]. - The inventory turnover ratio was 0.62 times, ranking 55th among peers, with an increase of 0.25 times year-on-year, a rise of 67.26% [3]. Shareholder Structure - The number of shareholders was 24,700, with the top ten shareholders holding 539 million shares, accounting for 67.52% of the total share capital [3]. - The largest shareholder, Shouguang Molong Holdings Co., Ltd., holds 29.53% of the shares [3].

Core Viewpoint - The company, 乐舱物流, has demonstrated significant growth in its financial performance for 2024, leading the shipping and port sector in the Hong Kong stock market, with a revenue increase of 57.2% and a net profit surge of 232.9% compared to the previous year [1][6]. Financial Performance - The company reported a revenue of 1.946 billion RMB for 2024, marking a year-on-year growth of 57.2% [1]. - The net profit attributable to shareholders reached 396 million RMB, a substantial increase of 232.9%, achieving a historical high [1]. - The container transportation volume for cross-border logistics rose from 233,903 TEUs in 2023 to 331,043 TEUs in 2024, with the average price per TEU increasing from 4,000 RMB to 4,813 RMB [1]. Market Position and Comparison - 乐舱物流's revenue and net profit growth rates outperformed several comparable companies, including 中远海控 and 东方海外国际, with a nearly 60% revenue growth and a 232% net profit increase [1]. - Among smaller comparable companies, 乐舱物流 also showed superior growth compared to 太平洋航运 and 天津港发展 [1]. Business Strategy and Expansion - The company has restarted self-operated shipping routes and is expanding its overseas warehousing business, enhancing its asset investment strategy to adapt to market changes and improve returns [2][3]. - The revenue from self-operated cross-border logistics services accounted for 15.5% of total revenue, with a significant increase of 84% year-on-year, reaching 1.834 billion RMB [4]. - The company plans to acquire two 14,700 TEU container ships for approximately 289.6 million USD to enhance its fleet and reduce costs per TEU [4]. Industry Outlook - The global shipping market is experiencing its strongest period since 2008, with a projected 6% increase in overall ton-mile demand for 2024, the fastest growth since 2010 [2][6]. - The company is expected to benefit from ongoing high demand in the global cross-border logistics market, with a focus on innovative operational models and high-value acquisitions to achieve a revenue target of 10 billion RMB [7]. Future Plans - The company aims to continue seeking new growth points in the global logistics market while maintaining stable expansion and healthy cash flow [7]. - A stable dividend mechanism is planned to enhance investor returns while ensuring sustainable development [7].

Financial Performance - For the fiscal year 2024, the company achieved a revenue of RMB 1.9464 billion and a net profit attributable to shareholders of RMB 395.8 million, with basic earnings per share of RMB 1.38[13]. - The company's total revenue increased by approximately 57.2% from RMB 1,238.5 million in 2023 to RMB 1,946.4 million in 2024[38]. - Revenue from cross-border logistics services rose by 84.0% to RMB 1,833.6 million, driven by an increase in service volume from 233,903 TEUs to 331,043 TEUs[37][38]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth[84]. - Profit before tax increased by approximately 231.3% from RMB 122.7 million to RMB 406.5 million[48]. - Net profit for the year rose by approximately 235.3% from RMB 119.6 million to RMB 401.0 million[51]. Operational Efficiency - The company completed a total container transportation volume of 331,043 TEUs, reinforcing its leading position in the cross-border logistics industry[13]. - The company launched self-operated routes to South America and Africa, enhancing its global service network coverage and operational efficiency[14]. - The company is committed to digital management investments, developing smart logistics solutions to improve supply chain transparency and operational efficiency[15]. - The company plans to optimize its fleet's energy structure by gradually introducing new energy vessels and implementing refined operational management[18]. - The average price per TEU for cross-border logistics services increased from RMB 4,000 to RMB 4,813 due to rising market rates and an increase in self-operated services[38]. Strategic Initiatives - The company aims to deepen its global layout by expanding self-operated routes in the Americas and building overseas warehouses to enhance service efficiency[17]. - The company intends to strategically invest in mergers and acquisitions to integrate quality resources and establish strategic partnerships with leading enterprises[19]. - The company aims to create a more competitive industrial ecosystem through strategic cooperation and digital supply chain service system improvements[19]. - The company expects steady revenue growth in 2025 through the expansion of self-operated routes and development of engineering logistics and overseas warehouse businesses[34]. Cost Management - The sales cost increased by approximately 71.6% to RMB 1,736.3 million, primarily due to rising costs associated with cross-border logistics services[39]. - Gross profit decreased by approximately 7.3% from RMB 226.6 million to RMB 210.1 million, with gross margin dropping from 18.3% to 10.8% due to a decline in average daily charter rates from RMB 136,000 to RMB 77,000[40]. - Selling and distribution expenses increased by approximately 31.6% from RMB 17.4 million to RMB 22.9 million, mainly due to higher salaries and benefits for the sales and marketing team[42]. - Administrative expenses rose by approximately 18.2% from RMB 83.1 million to RMB 98.2 million, attributed to increased salaries, depreciation, and office expenses[43]. Governance and Compliance - The board is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[103]. - The company has complied with the corporate governance code throughout the year, with the exception of the Chairman and CEO roles being held by the same individual[103]. - The board has established written guidelines to regulate securities trading by directors and employees, ensuring compliance with insider trading regulations[108]. - The company has confirmed that all directors have adhered to the standards of conduct regarding securities trading during the year[108]. - The board believes that having the same individual serve as both Chairman and CEO enhances the company's ability to respond quickly and effectively to business strategies[103]. ESG and Sustainability - The company reported a focus on ESG principles, actively reducing carbon emissions and enhancing waste management and marine protection measures[16]. - The management team emphasized the importance of sustainability initiatives, aiming to reduce carbon emissions by 30% over the next five years[84]. - The board of directors is responsible for overseeing the implementation of ESG strategies and performance, regularly discussing ESG risks and opportunities[164]. - The company has established a three-tier ESG governance structure involving the board, management, and execution units to ensure effective management of ESG-related tasks[164]. - Climate-related risks are incorporated into the overall ESG management framework to ensure effective risk control[197]. Human Resources - The employee costs related to the company's staff amounted to RMB 66.1 million for the year ended December 31, 2024[73]. - As of December 31, 2024, the employee gender ratio is 44.5% male (150 employees) and 55.5% female (187 employees)[151]. - The company aims to enhance gender diversity by training qualified female employees to prepare them for future Board positions[134]. Risk Management - The internal audit and risk management functions conducted an independent assessment of the adequacy and effectiveness of the risk management and internal control systems, finding no significant inconsistencies[146]. - The company updated its risk management system, adding new management protocols for significant matters and contract discussions to better control operational risks[187]. - The company has implemented a framework for disclosing inside information, ensuring timely and appropriate handling of such information[147].

Financial Performance - For the fiscal year ending December 31, 2024, the revenue was RMB 1,946.4 million, representing an increase from RMB 1,238.5 million in 2023, which is a growth of approximately 57.3%[4] - The profit attributable to the owners of the parent company for the fiscal year was RMB 395.8 million, compared to RMB 118.9 million in 2023, marking a significant increase of about 233.5%[5] - The basic earnings per share for the fiscal year was RMB 1.38, up from RMB 0.45 in 2023, reflecting a growth of approximately 206.7%[5] - The company reported a total comprehensive income of RMB 417.8 million for the fiscal year, compared to RMB 121.6 million in 2023, which is an increase of approximately 243.5%[6] - The company's pre-tax profit for 2024 was RMB 406,512,000, a significant increase from RMB 122,668,000 in 2023, representing a growth of approximately 231%[25] - The net profit for the year increased by approximately 235.3% to RMB 401.0 million, reflecting strong operational performance despite rising costs[61] Revenue Breakdown - Revenue from customer contracts amounted to RMB 1,868,487 thousand in 2024, up from RMB 1,020,238 thousand in 2023, reflecting an increase of 83.5%[19] - Revenue from cross-border logistics services rose by 84.0% to RMB 1,833.6 million, with the average price per TEU increasing from RMB 4,000 to RMB 4,813[48][49] - Revenue from supply chain solutions for imported goods was RMB 34.9 million, representing an extension of the cross-border logistics services[37] - Revenue from ship leasing decreased to RMB 77,906 thousand in 2024 from RMB 218,233 thousand in 2023, indicating a decline of 64.3%[19] Costs and Expenses - The financial cost for ongoing operations in 2024 was RMB 8,938 thousand, which is an increase of 65.5% from RMB 5,388 thousand in 2023[20] - The pre-tax profit before deductions for 2024 was impacted by costs including service costs of RMB 1,642,025 thousand, up from RMB 938,616 thousand in 2023, representing a 74.8% increase[21] - Operating expenses, including sales and distribution, increased by approximately 31.6% to RMB 22.9 million, mainly due to higher salaries and benefits for the sales and marketing team[53] - The total tax expense for the year was RMB 5,550,000, an increase of 80% compared to RMB 3,081,000 in 2023[25] Assets and Liabilities - The total assets less current liabilities amounted to RMB 1,630.5 million, compared to RMB 1,166.8 million in 2023, showing an increase of about 39.7%[8] - The company's total equity reached RMB 1,551.6 million, up from RMB 1,164.4 million in 2023, reflecting an increase of approximately 33.2%[8] - The company's current assets increased by approximately 140.4% to RMB 1,006.7 million, indicating improved liquidity and financial health[63] - The group's borrowings as of December 31, 2024, totaled RMB 84.7 million, up from RMB 51.3 million a year earlier, reflecting an increase in interest-bearing bank and other loans[66] - The debt-to-equity ratio as of December 31, 2024, was 5.5%, up from 4.4% a year earlier, primarily due to an increase in interest-bearing borrowings during the year[76] Cash Flow and Liquidity - The net cash and bank balances increased significantly to RMB 779.6 million from RMB 207.9 million in 2023, representing a growth of approximately 274.5%[7] - The current ratio as of December 31, 2024, was 3.4 times, compared to 1.5 times on December 31, 2023, indicating improved liquidity[76] Dividends and Shareholder Returns - The company declared a special dividend of RMB 0.15 per share, totaling approximately RMB 43,000,000, and proposed a final dividend of HKD 0.44 per share for the year ending December 31, 2024[26] - A final dividend of HKD 0.44 per share is proposed, representing approximately 30% of the annual profit, totaling around HKD 125.96 million[86] Strategic Plans and Future Outlook - The company plans to optimize cross-border logistics operations and expand service coverage, particularly in the Americas, to meet growing customer demand[42] - The company plans to continue expanding its overseas warehouse operations, enhancing its logistics ecosystem to improve competitiveness in international markets[43] - The company expects steady revenue growth through the expansion of self-operated routes and deepening engineering logistics services by 2025[45] - The company plans to introduce new energy vessels and optimize its fleet's energy structure as part of its commitment to green shipping initiatives[43] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules, ensuring high standards of corporate governance[90] - The audit committee, consisting of three independent non-executive directors, reviewed the annual performance for the year ending December 31, 2024[92] - The financial statements, including the consolidated income statement and consolidated financial position, have been agreed upon with the company's auditor, Ernst & Young[92] Employee and Operational Information - As of December 31, 2024, the company has 337 full-time employees, with employee costs recognized as RMB 661 million for the year[83] - The company has not purchased, sold, or redeemed any of its listed securities during the year[85] Miscellaneous - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year[79] - The group did not hold any significant investments during the year[80] - The group has no major future plans for significant investments or capital assets beyond those disclosed in the prospectus dated September 13, 2023[81] - There have been no significant events affecting the company since December 31, 2024[84] - The company will hold its annual general meeting on May 16, 2025, with a suspension of share transfer registration from May 13 to May 16, 2025[88]

[Company Information](index=2&type=section&id=Company%20Information) [Company Profile](index=5&type=section&id=Company%20Profile) LeCang Logistics, established in 2004, offers integrated cross-border ocean freight logistics services in China, including warehousing and customs, and was listed on the Hong Kong Stock Exchange on September 25, 2023 - The company's core business is providing integrated cross-border ocean freight logistics services, supplemented by vessel chartering to enhance resources and capabilities[15](index=15&type=chunk) - The company was listed on the Main Board of the Hong Kong Stock Exchange on **September 25, 2023**, with stock code 2490[15](index=15&type=chunk) [Financial and Operational Highlights](index=6&type=section&id=Financial%20and%20Operational%20Highlights) In the first half of 2024, the company's revenue increased by 15.0% year-on-year, but profit significantly declined by 87.8%, while cross-border logistics container volume grew by 18.3%, indicating a divergence between business expansion and profitability Key Financial and Operational Data for H1 2024 | Indicator | H1 2023 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue (RMB Million) | 655.8 | 754.2 | +15.0% | | Profit (RMB Million) | 105.1 | 12.8 | -87.8% | | Earnings Per Share (RMB) | 0.41 | 0.03 | -92.7% | | Cross-border Logistics Container Volume (TEUs) | 118,656 | 140,355 | +18.3% | [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=7&type=section&id=Business%20Review) During the reporting period, the company operated two main businesses: cross-border logistics services and vessel chartering; cross-border logistics saw increases in both volume and price, with new self-operated and overseas warehousing services launched, while vessel chartering revenue significantly decreased due to a sharp decline in market charter rates - Cross-border logistics service volume increased from **118,656 TEUs** to **138,335 TEUs**, with the average price rising from approximately **RMB 3,985.3/TEU** to **RMB 4,129.8/TEU**[20](index=20&type=chunk) - In June 2024, the company capitalized on rising market freight rates by launching self-operated cross-border logistics services, contributing approximately **12.3%** of the segment's revenue[20](index=20&type=chunk) - The average daily charter rate for vessel chartering services significantly decreased from approximately **RMB 179,000** in the prior period to **RMB 82,000** this year, leading to a sharp decline in revenue from this business[21](index=21&type=chunk) [Business Outlook](index=8&type=section&id=Business%20Outlook) Management maintains a cautious outlook for the second half of 2024, anticipating that the traditional peak season will improve cross-border ocean freight performance, while recovering market charter rates are expected to boost vessel chartering service results - The second half of the year is expected to see traditional peak seasons for Europe and US routes due to Christmas and New Year holiday stocking, with the Asian route peak in the fourth quarter, which should improve cross-border ocean freight performance[25](index=25&type=chunk) - With the general increase in market charter rates in 2024, vessel chartering service performance is expected to improve in the second half of the year[25](index=25&type=chunk) [Financial Review](index=8&type=section&id=Financial%20Review) In the first half of 2024, total revenue increased by 15.0% to RMB 754 million, driven by cross-border logistics; however, gross profit and net profit sharply declined by 54.1% and 87.8% year-on-year, respectively, due to a significant drop in vessel chartering gross margin and increased expenses [Revenue](index=8&type=section&id=Revenue) Total revenue increased by 15.0% year-on-year to RMB 754 million, primarily driven by a 38.3% rise in cross-border logistics service revenue due to increased volume, average prices, and new overseas warehousing and China-Africa breakbulk shipping, while vessel chartering revenue sharply declined by 73.5% due to lower rates Revenue Breakdown by Business Segment (For the six months ended June 30) | Business Segment | 2024 (RMB Thousand) | 2023 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Cross-border Logistics Services | 689,020 | 498,196 | +38.3% | | Vessel Chartering Services | 40,343 | 152,230 | -73.5% | | Others | 24,875 | 5,417 | +359.2% | | **Total** | **754,238** | **655,843** | **+15.0%** | [Cost of Sales](index=9&type=section&id=Cost%20of%20Sales) Cost of sales increased by 35.2% year-on-year to RMB 686 million, primarily due to higher fuel costs, vessel chartering costs, port charges, and freight expenses related to cross-border logistics services - Cost of sales increased from **RMB 507.5 million** to **RMB 686.1 million**, a year-on-year growth of **35.2%**, mainly due to increased costs for cross-border logistics services[28](index=28&type=chunk) [Gross Profit and Gross Margin](index=9&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit significantly decreased by 54.1% year-on-year to RMB 68.1 million, with gross margin falling from 22.6% to 9.0%, primarily due to the high-margin vessel chartering service's average daily charter rate dropping from RMB 179,000 to RMB 82,000, severely eroding profitability Gross Profit and Gross Margin Changes | Indicator | H1 2023 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit (RMB Million) | 148.3 | 68.1 | -54.1% | | Gross Margin | 22.6% | 9.0% | -13.6pp | [Other Income and Gains](index=9&type=section&id=Other%20Income%20and%20Gains) Other income and gains increased by 354.5% year-on-year to RMB 5 million, primarily driven by higher interest income - Other income and gains increased from **RMB 1.1 million** to **RMB 5 million**, mainly due to higher interest income[30](index=30&type=chunk) [Selling and Distribution Expenses](index=10&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses remained relatively stable, increasing slightly from RMB 8.3 million in the prior period to RMB 9.1 million [Administrative Expenses](index=10&type=section&id=Administrative%20Expenses) Administrative expenses significantly increased by 57.0% year-on-year to RMB 45.7 million, primarily due to higher consulting fees, salaries, and welfare expenses - Administrative expenses increased from **RMB 29.1 million** to **RMB 45.7 million**, a year-on-year growth of **57.0%**[33](index=33&type=chunk) [Other Expenses](index=10&type=section&id=Other%20Expenses) Other expenses increased by 152.4% year-on-year to RMB 5.3 million, primarily due to higher losses on disposal of non-current assets related to container sales [Finance Costs](index=10&type=section&id=Finance%20Costs) Finance costs increased from RMB 3.3 million to RMB 4.2 million, mainly due to higher interest expenses on lease liabilities from warehouse rentals - The increase in finance costs was primarily due to higher interest expenses on lease liabilities[35](index=35&type=chunk) [Net Impairment Losses on Financial Assets](index=10&type=section&id=Net%20Impairment%20Losses%20on%20Financial%20Assets) The period recorded a reversal of impairment losses on financial assets of RMB 4.2 million, compared to a loss of RMB 3.6 million in the prior period, mainly due to the recovery of long-outstanding trade receivables [Profit Before Tax and Profit for the Period](index=10&type=section&id=Profit%20Before%20Tax%20and%20Profit%20for%20the%20Period) Considering the above factors, the company's profit before tax decreased from RMB 103 million to RMB 13 million, a year-on-year reduction of 87.4%; profit for the period decreased from RMB 105 million to RMB 12.8 million, a year-on-year reduction of 87.8% Profit Performance | Indicator | H1 2023 (RMB Million) | H1 2024 (RMB Million) | Change | | :--- | :--- | :--- | :--- | | Profit Before Tax | 103.1 | 13.0 | -87.4% | | Profit for the Period | 105.1 | 12.8 | -87.8% | [Liquidity, Financial and Capital Resources](index=11&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) As of June 30, 2024, the company maintained a sound financial position, with net current assets increasing to RMB 177 million, cash and bank balances at RMB 182 million, and total borrowings decreasing from RMB 51.3 million to RMB 22.8 million, indicating deleveraging efforts Key Financial Position Indicators (As of June 30, 2024) | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net Current Assets (RMB Million) | 177.4 | 139.9 | | Cash and Bank Balances (RMB Million) | 181.8 | 207.9 | | Total Borrowings (RMB Million) | 22.8 | 51.3 | - As of June 30, 2024, the company had pledged container vessels with a carrying amount of **RMB 33.4 million** to secure borrowings of **RMB 12.8 million**[49](index=49&type=chunk) [Financial Risks](index=13&type=section&id=Financial%20Risks) The company faces key financial risks including interest rate, foreign currency, credit, and liquidity risks, managed through a conservative strategy that avoids derivative instruments for hedging and relies on close monitoring - The company's primary risks include interest rate, foreign currency, credit, and liquidity risks, managed with a conservative strategy that does not use derivatives for hedging[51](index=51&type=chunk) [Key Financial Ratios](index=14&type=section&id=Key%20Financial%20Ratios) The company's current ratio remained stable at 1.5 times, while the gearing ratio significantly decreased from 4.4% to 1.9%, primarily due to the settlement of certain interest-bearing borrowings during the period, indicating an improved capital structure Key Financial Ratios | Ratio | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Current Ratio (times) | 1.5 | 1.5 | | Gearing Ratio | 1.9% | 4.4% | [Use of Proceeds from Listing](index=15&type=section&id=Use%20of%20Proceeds%20from%20Listing) Net proceeds from the listing amounted to approximately HKD 95.1 million; as of June 30, 2024, approximately HKD 48.4 million had been utilized for logistics facilities, software systems, and strategic investments, with approximately HKD 36.2 million remaining unutilized Summary of Use of Proceeds from Listing (HKD Million) | Category of Use | Planned Net Amount | Amount Utilized | Amount Unutilized | | :--- | :--- | :--- | :--- | | Establishment of Logistics Facilities, etc. | 47.4 | 26.6 | 20.8 | | Expansion of Business Coverage | 3.8 | 3.8 | 0 | | Digital Technology Upgrades | 6.7 | 1.5 | 5.2 | | Strategic Investments/Acquisitions | 19.0 | 15.5 | 3.5 | | Others and Working Capital | 8.2 | 1.0 | 7.2 | | **Total** | **85.1** | **48.4** | **36.7** | [Employees and Remuneration Policy](index=16&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2024, the Group had 331 full-time employees, with staff costs of RMB 30.1 million for the first half of the year; the company offers competitive remuneration and provides induction and on-the-job training - As of June 30, 2024, the Group had **331** full-time employees, with staff costs of **RMB 30.1 million** for the first half of the year[69](index=69&type=chunk) [Subsequent Events](index=16&type=section&id=Subsequent%20Events) Subsequent to the reporting period, the company engaged in significant asset transactions, agreeing in July 2024 to sell two vessels under construction for USD 133.3 million, and subsequently entering a framework agreement in September to acquire two additional vessels, indicating active adjustments to its fleet asset portfolio - In July 2024, the Group agreed to sell two vessels under construction for **USD 133.3 million**, with the buyer assuming the rights and obligations under the shipbuilding agreements[70](index=70&type=chunk) - On September 2, 2024, the Group entered into an agreement to acquire two vessels, subject to shareholder approval[70](index=70&type=chunk) [Corporate Governance and Other Information](index=17&type=section&id=Corporate%20Governance%20and%20Other%20Information) The company is committed to high standards of corporate governance, complying with all applicable code provisions during the reporting period, except for the chairman and CEO being the same person (Mr. Xu Xin); the Board does not recommend an interim dividend, and the Audit Committee has reviewed these interim results - Mr. Xu Xin serves as both Chairman of the Board and Chief Executive Officer, a dual role the Board believes enhances decision-making efficiency, with power balance ensured by the entire Board[72](index=72&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[82](index=82&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim results and concurred with management[84](index=84&type=chunk) [Interim Condensed Consolidated Financial Statements](index=21&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Profit or Loss](index=21&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The statement of profit or loss shows that despite revenue increasing from RMB 656 million to RMB 754 million, gross profit decreased from RMB 148 million to RMB 68.1 million, and profit for the period significantly dropped from RMB 105 million to RMB 12.8 million Summary of Interim Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Item (RMB Thousand) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 754,238 | 655,843 | | Gross Profit | 68,104 | 148,334 | | Profit Before Tax | 13,005 | 103,119 | | Profit for the Period | 12,806 | 105,055 | | Profit Attributable to Owners of the Parent | 9,393 | 104,126 | | Basic Earnings Per Share (RMB) | 0.03 | 0.41 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=22&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The statement of comprehensive income shows profit for the period at RMB 12.8 million, with other comprehensive income (primarily exchange differences) at RMB 9.44 million, resulting in a total comprehensive income of RMB 22.24 million for the period, significantly lower than RMB 118 million in the prior period Summary of Interim Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Item (RMB Thousand) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Profit for the Period | 12,806 | 105,055 | | Other Comprehensive Income, Net of Tax | 9,436 | 13,206 | | Total Comprehensive Income for the Period | 22,242 | 118,261 | [Interim Condensed Consolidated Statement of Financial Position](index=23&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) The statement of financial position as of June 30, 2024, shows total assets of RMB 1.577 billion, total liabilities of RMB 389 million, and total equity of RMB 1.188 billion, with net current assets at RMB 177 million, indicating a stable asset structure Summary of Interim Condensed Consolidated Statement of Financial Position | Item (RMB Thousand) | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 1,075,012 | 1,026,813 | | Total Current Assets | 502,462 | 418,674 | | Total Current Liabilities | 325,106 | 278,732 | | Total Non-current Liabilities | 63,980 | 2,352 | | **Net Assets** | **1,188,388** | **1,164,403** | [Interim Condensed Consolidated Statement of Changes in Equity](index=25&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The statement of changes in equity shows total equity increased from RMB 1.164 billion at the beginning of the period to RMB 1.188 billion at the end, primarily due to comprehensive income for the period and contributions from non-controlling interests - Equity attributable to owners of the parent increased from **RMB 1.135 billion** at the beginning of the year to **RMB 1.151 billion**, primarily contributed by total comprehensive income of **RMB 16.24 million** for the period[89](index=89&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=26&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The statement of cash flows shows a net cash outflow from operating activities of RMB 8.09 million (compared to a net inflow of RMB 69.89 million in the prior period), mainly due to working capital changes; investing activities generated a net inflow of RMB 5.64 million, and financing activities resulted in a net outflow of RMB 49.7 million, with cash and cash equivalents at period-end totaling RMB 179 million Summary of Interim Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Item (RMB Thousand) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | (8,093) | 69,892 | | Net Cash Flows from Investing Activities | 5,637 | (236,338) | | Net Cash Flows Used in Financing Activities | (49,698) | (25,117) | | Net Decrease in Cash and Cash Equivalents | (52,154) | (191,563) | | Cash and Cash Equivalents at End of Period | 179,172 | 153,675 | [Notes to the Interim Condensed Consolidated Financial Information](index=28&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [3. Operating Segment Information](index=30&type=section&id=3.%20Operating%20Segment%20Information) Management monitors and allocates resources for the Group's business as a single operating segment; geographically, Greater China is the primary revenue source, contributing approximately 92.5% of revenue, with no single customer accounting for over 10% of revenue during the reporting period Revenue from External Customers by Geographical Area (For the six months ended June 30) | Geographical Area | 2024 (RMB Thousand) | 2023 (RMB Thousand) | | :--- | :--- | :--- | | Greater China | 697,642 | 500,918 | | Others | 56,596 | 154,925 | | **Total** | **754,238** | **655,843** | [4. Revenue, Other Income and Gains](index=31&type=section&id=4.%20Revenue%2C%20Other%20Income%20and%20Gains) Of the total revenue of RMB 754 million, RMB 714 million was from contracts with customers and RMB 40.34 million from vessel chartering; customer contract revenue primarily comprised RMB 676 million from cross-border logistics services, with an additional RMB 13.39 million from new overseas warehousing services Disaggregation of Revenue from Contracts with Customers (For the six months ended June 30) | Type of Goods or Services (RMB Thousand) | 2024 | 2023 | | :--- | :--- | :--- | | Cross-border Logistics Services | 675,633 | 498,196 | | Sales of Goods | 24,875 | 5,417 | | Overseas Warehousing | 13,387 | – | | **Total** | **713,895** | **503,613** | [9. Earnings Per Share Attributable to Owners of the Parent](index=35&type=section&id=9.%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) Basic earnings per share, calculated based on profit attributable to owners of the parent of RMB 9.393 million and a weighted average of 286 million ordinary shares outstanding, was RMB 0.03, a significant decrease from RMB 0.41 in the prior period Basic Earnings Per Share Calculation | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit Attributable (RMB Thousand) | 9,393 | 104,126 | | Weighted Average Number of Ordinary Shares | 286,269,156 | 255,543,156 | | **Basic Earnings Per Share (RMB)** | **0.03** | **0.41** | [11. Trade Receivables](index=36&type=section&id=11.%20Trade%20Receivables) Total trade receivables increased from RMB 89.26 million to RMB 156 million; the aging analysis shows receivables within 1 month accounted for the largest portion at RMB 120 million, notably, receivables over 1 year decreased from RMB 23.9 million to zero Aging Analysis of Trade Receivables | Aging | June 30, 2024 (RMB Thousand) | December 31, 2023 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 month | 120,269 | 41,509 | | 1 to 3 months | 26,537 | 14,595 | | 3 to 6 months | 5,161 | 7,857 | | 6 to 12 months | 3,631 | 1,395 | | Over 1 year | – | 23,904 | | **Total** | **155,598** | **89,260** | [15. Commitments](index=38&type=section&id=15.%20Commitments) As of the end of the reporting period, the Group had significant capital commitments for the purchase of container vessels, amounting to approximately RMB 1.402 billion, a slight increase from the beginning of the year - As of June 30, 2024, the Group had contracted but unprovided capital commitments for container vessels totaling **RMB 1.402 billion**[117](index=117&type=chunk) [18. Events After the Reporting Period](index=43&type=section&id=18.%20Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the company agreed in July 2024 to sell two vessels under construction for USD 133.3 million and in September to acquire two additional vessels; these transactions represent significant adjustments to the Group's asset portfolio and will materially impact future financial position - In July 2024, the Group entered into an agreement to sell two vessels under construction for **USD 133.3 million**, with the buyer assuming the rights and obligations under the shipbuilding agreements[129](index=129&type=chunk) - In September 2024, the Group entered into an agreement to acquire two new vessels, demonstrating its ongoing optimization of the fleet asset portfolio[129](index=129&type=chunk)

Revenue and Profit - Revenue for the six months ended June 30, 2024, was RMB 754.2 million, an increase from RMB 655.8 million for the same period in 2023, representing a growth of approximately 15%[2] - Profit for the six months ended June 30, 2024, was RMB 12.8 million, a significant decrease from RMB 105.1 million in the same period of 2023, reflecting a decline of approximately 87%[2] - Basic earnings per share for the six months ended June 30, 2024, were RMB 0.03, down from RMB 0.41 in the same period of 2023[2] - Revenue for the six months ended June 30, 2024, was RMB 754,238,000, an increase of 15% compared to RMB 655,843,000 for the same period in 2023[13] - Revenue from customer contracts was RMB 713,895,000, up 42% from RMB 503,613,000 in the previous year[16] - The group reported a pre-tax profit of RMB 9,393,000 for the six months ended June 30, 2024, down from RMB 104,126,000 in the same period last year[22] - The group did not declare or pay any dividends during the period[20] - Profit before tax decreased by approximately 87.4% from RMB 103.1 million for the six months ended June 30, 2023, to RMB 13.0 million for the six months ended June 30, 2024[37] - Net profit for the group decreased by approximately 87.8% from RMB 105.1 million for the six months ended June 30, 2023, to RMB 12.8 million for the six months ended June 30, 2024[38] Costs and Expenses - The cost of services provided was RMB 641,769,000, compared to RMB 502,575,000 for the same period in 2023, reflecting a significant increase in operational costs[17] - Gross profit for the six months ended June 30, 2024, was RMB 68.1 million, compared to RMB 148.3 million for the same period in 2023, indicating a decrease of approximately 54%[2] - Administrative expenses increased to RMB 9.1 million for the six months ended June 30, 2024, compared to RMB 8.3 million in the same period of 2023[2] - Other expenses increased by approximately 152.4% from RMB 2.1 million for the six months ended June 30, 2023, to RMB 5.3 million for the six months ended June 30, 2024, primarily due to increased losses from the disposal of non-current assets related to container sales[35] - Financial costs rose from RMB 3.3 million for the six months ended June 30, 2023, to RMB 4.2 million for the six months ended June 30, 2024, mainly due to increased interest expenses from lease liabilities related to warehouse rentals[36] - Administrative expenses increased by 57.0% to RMB 45.7 million, driven by higher consulting fees and employee benefits[34] Assets and Liabilities - Total non-current assets as of June 30, 2024, amounted to RMB 1,075.0 million, an increase from RMB 1,026.8 million as of December 31, 2023[5] - Total current assets as of June 30, 2024, were RMB 502.5 million, compared to RMB 418.7 million as of December 31, 2023, reflecting an increase of approximately 20%[5] - Total liabilities as of June 30, 2024, were RMB 325.1 million, up from RMB 278.7 million as of December 31, 2023[5] - The company's total equity as of June 30, 2024, was RMB 1,188.4 million, compared to RMB 1,164.4 million as of December 31, 2023[6] - Trade receivables increased to RMB 155.6 million as of June 30, 2024, compared to RMB 89.3 million as of December 31, 2023, indicating improved collection efficiency[23] - Trade payables rose to RMB 195.2 million as of June 30, 2024, from RMB 172.4 million as of December 31, 2023, reflecting increased operational activity[24] - The group's cash and bank balances as of June 30, 2024, were RMB 181.8 million, down from RMB 207.9 million as of December 31, 2023[39] - Total borrowings decreased from RMB 51.3 million as of December 31, 2023, to RMB 22.8 million as of June 30, 2024[40] - The group has pledged container vessels with a book value of RMB 33.4 million as of June 30, 2024, to secure bank and other borrowings of RMB 12.8 million[43] Operational Highlights - The container transportation volume for cross-border logistics services was 140,355 TEUs for the six months ended June 30, 2024[1] - Revenue from cross-border logistics services rose by 38.3% to RMB 689.0 million, driven by an increase in average price per TEU from RMB 3,985.3 to RMB 4,402.0 and an increase in service volume from 118,656 TEUs to 140,355 TEUs[29] - The average daily charter rate for vessel leasing decreased significantly by 54.4% from RMB 179,100.4 to RMB 81,865.7, contributing to a 54.1% decline in gross profit to RMB 68.1 million[31] - The company generated RMB 24.9 million in revenue from supply chain solutions under its cross-border logistics services, focusing on imports from the United States[27] - The group has initiated overseas warehousing operations to enhance capabilities in parcel handling, storage, customs clearance, and last-mile delivery[25] Future Outlook and Strategic Initiatives - The company plans to maintain a cautious approach in the second half of 2024, adjusting service supply strategies based on market conditions[28] - The company plans to utilize the net proceeds from the IPO for strategic investments and business expansion by 2025[51] - The net proceeds from the IPO, approximately HKD 95.1 million, will be allocated to various strategic initiatives, including logistics facility establishment and digital technology adoption[54] - Employee costs for the six months ended June 30, 2024, were RMB 30.1 million, with a total of 331 full-time employees[54] - The company has no significant contingent liabilities as of June 30, 2024[49] - No major acquisitions or disposals of subsidiaries, associates, or joint ventures occurred during the period[50] - The company has not proposed an interim dividend for the six months ended June 30, 2024[55] - The company sold two vessels under construction for USD 133.3 million in July 2024[55]

Financial Performance - Profit before tax decreased by approximately 69.0% from RMB 395.4 million for the year ended December 31, 2022, to RMB 122.7 million for the current year[11]. - Net profit for the year decreased by approximately 69.0% from RMB 386.3 million for the year ended December 31, 2022, to RMB 119.6 million for the current year[13]. - Total revenue for 2023 was RMB 1,238,471 thousand, a significant decrease from RMB 4,607,929 thousand in 2022, representing a decline of approximately 73.1%[84]. - Revenue from customer contracts was RMB 1,020,238 thousand in 2023, down from RMB 4,389,175 thousand in 2022, indicating a decrease of about 76.7%[86]. - The group's profit before tax for 2023 was RMB 938,616 thousand, a significant decrease from RMB 4,025,832 thousand in 2022[25]. - The profit attributable to equity holders of the parent company for the same period was RMB 118.9 million, down from RMB 380.9 million in 2022[92]. - Basic earnings per share for the year were RMB 0.45, compared to RMB 1.49 in the previous year[105]. - The company's gross profit for the year was RMB 226.6 million, down from RMB 545.3 million in 2022[102]. - The gross profit decreased by about 58.4% from RMB 545.3 million in 2022 to RMB 226.6 million in 2023, while the gross profit margin increased from 11.8% to 18.3%[133]. Expenses and Costs - Other income and gains decreased by approximately 40.0% from RMB 9.5 million for the year ended December 31, 2022, to RMB 5.7 million for the current year, primarily due to a reduction in foreign exchange gains[3]. - Selling and distribution expenses decreased by approximately 6.5% from RMB 18.6 million for the year ended December 31, 2022, to RMB 17.4 million for the current year, mainly due to a reduction in salaries and benefits[4]. - Administrative expenses remained relatively stable at RMB 87.1 million and RMB 83.1 million for the years ended December 31, 2022, and 2023, respectively[5]. - Other expenses decreased by approximately 58.8% from RMB 3.4 million for the year ended December 31, 2022, to RMB 1.4 million for the current year, primarily due to a reduction in losses related to the disposal of non-current assets[6]. - Financial costs increased from RMB 4.8 million for the year ended December 31, 2022, to RMB 5.4 million for the current year, mainly due to an increase in average monthly borrowings[7]. - Financial costs for ongoing operations totaled RMB 5,388 thousand in 2023, compared to RMB 4,827 thousand in 2022, reflecting an increase of approximately 11.7%[87]. - The total tax expense for the year was RMB 3.1 million, significantly lower than RMB 9.1 million in 2022[97]. Assets and Liabilities - As of December 31, 2023, the company's cash and bank balances were RMB 207.9 million, down from RMB 340.0 million as of December 31, 2022[17]. - Total borrowings as of December 31, 2023, were RMB 51.3 million, a decrease from RMB 66.9 million as of December 31, 2022[18]. - The total liabilities decreased from RMB 505.1 million in 2022 to RMB 278.7 million in 2023, representing a reduction of approximately 44.8%[69]. - The net asset value increased to RMB 1,164.4 million in 2023 from RMB 891.2 million in 2022, showing a growth of around 30.6%[72]. - Trade receivables at the end of the reporting period totaled RMB 89.3 million, down from RMB 149.1 million in 2022[114]. - Trade payables at the end of the reporting period amounted to RMB 172.4 million, compared to RMB 336.4 million in 2022[116]. Capital and Financing - The company plans to obtain additional bank loans and other borrowings for working capital purposes and will continue to assess potential financing opportunities based on its capital resource needs and market conditions[14]. - The capital commitments amounted to RMB 1,393.2 million as of December 31, 2023, down from RMB 1,512.1 million in 2022, related to the purchase of container vessels[36]. - The current ratio improved to 1.5 times as of December 31, 2023, compared to 1.3 times in the previous year[34]. - The debt-to-equity ratio decreased to 4.4% as of December 31, 2023, down from 8.6% in 2022, primarily due to the repayment of related party payables and interest-bearing borrowings during the year[34]. Operational Highlights - The total container throughput for cross-border logistics services was 233,903 TEUs, a decline from 255,613 TEUs in 2022[119]. - Revenue from cross-border logistics services fell by 77.3%, from RMB 4,389.2 million in 2022 to RMB 996.7 million in 2023, primarily due to a drop in average price per TEU from RMB 12,300 to RMB 4,000[132]. - The average price per TEU for cross-border shipping services dropped from approximately RMB 7,000 in 2022 to about RMB 4,000 in 2023 due to market price declines[119]. - The average daily charter rate for ship leasing was approximately RMB 136,000, down from RMB 191,000 in the same period of 2022[120]. - The company generated RMB 23.6 million in revenue from supply chain solutions under its import goods trade segment, which began in February 2023[121]. - The company plans to develop overseas warehouse business, anticipating the global cross-border logistics market to grow from USD 343.8 billion in 2023 to USD 404.9 billion by 2027[125]. - The company aims to leverage its fleet to expand service coverage and enhance capacity, focusing on self-operated routes in Southeast Asia[124]. - The company will focus on providing integrated logistics solutions for international engineering clients in Africa, South America, and Southeast Asia[129]. - The company expects to maintain strong profitability despite challenges in the cross-border logistics industry due to geopolitical conflicts and supply chain adjustments[123]. - The company will continue to strive for steady growth in performance to create greater value for shareholders[130]. Governance and Compliance - The company has adopted the corporate governance code since its listing, ensuring compliance with the relevant regulations[62]. - The audit committee reviewed the annual performance for the year ended December 31, 2023, and agreed on the financial results with the management[65]. - The company has adopted revised international financial reporting standards for the first time this year, but these revisions did not impact the financial statements[79]. - The company’s financial statements are prepared in accordance with International Financial Reporting Standards and relevant local regulations[1]. - There were no significant events affecting the company from December 31, 2023, to the date of the announcement[58]. - The company has not purchased, sold, or redeemed any of its listed securities from January 1, 2023, to the date of the announcement[59]. - The company does not recommend the payment of a final dividend for the year ended December 31, 2023[60]. - The company did not declare or pay any dividends during the year[110]. - The group has no significant contingent liabilities as of December 31, 2023[35]. - The group has no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year[37]. - There are no major future plans for significant investments or capital assets beyond those disclosed in the prospectus[47].

Revenue Performance - The company's revenue from cross-border logistics services decreased to RMB 498,196,000 for the six months ended June 30, 2023, down 81.1% from RMB 2,632,364,000 in the same period of 2022[8]. - Total revenue from customer contracts was RMB 503,613,000 for the six months ended June 30, 2023, compared to RMB 2,632,364,000 for the same period in 2022, representing a decline of 80.9%[8]. - The company's total revenue decreased by approximately 75.6% from RMB 2,685.4 million for the six months ended June 30, 2022, to RMB 655.8 million for the same period in 2023[113]. - Revenue from cross-border logistics services dropped by 81.1%, from RMB 2,632.4 million in 2022 to RMB 498.2 million in 2023, primarily due to a decline in average price per TEU from RMB 13,124.1 to RMB 3,985.3[112]. - Revenue from vessel leasing services increased from RMB 53.0 million for the six months ended June 30, 2022, to RMB 152.2 million for the six months ended June 30, 2023[98]. Profitability - The net profit attributable to equity holders of the parent company for the six months ended June 30, 2023, was RMB 104,126,000, a decrease of 62.4% from RMB 276,735,000 for the same period in 2022[19]. - The group’s net profit for the six months ended June 30, 2023, was RMB 105.1 million, a decrease of approximately 62.8% from RMB 282.4 million for the same period in 2022[63]. - Gross profit for the same period was RMB 148,334,000, down 56.2% from RMB 338,495,000 year-over-year[190]. - The company recorded a profit before tax of RMB 103,119,000, a decline of 64.3% from RMB 288,818,000 in the previous year[190]. - The company's total comprehensive income for the first half of 2023 was RMB 117,192,000, down from RMB 313,569,000 in the same period of 2022, indicating a decrease of approximately 62.7%[171]. Financial Position - As of June 30, 2023, the group's cash and bank balance was RMB 156.7 million, a decrease from RMB 340.0 million as of December 31, 2022[52]. - The group's borrowings amounted to RMB 60.3 million as of June 30, 2023, down from RMB 66.9 million as of December 31, 2022[56]. - As of June 30, 2023, the company's total equity amounted to RMB 1,009,787,000, an increase from RMB 891,179,000 as of January 1, 2023, reflecting a growth of approximately 13.3%[171]. - Non-current liabilities totaled RMB 38,895,000 as of June 30, 2023, down from RMB 44,258,000 as of December 31, 2022[194]. - The company's current ratio was 1.1, compared to 1.3 on December 31, 2022[148]. Cash Flow - Operating cash flow for the first half of 2023 was RMB 69,892,000, significantly lower than RMB 314,996,000 in the same period of 2022, representing a decrease of approximately 77.8%[173]. - Cash flow from investing activities showed a net outflow of RMB 236,338 thousand, compared to an inflow of RMB 148,435 thousand in the same period last year[200]. - The company reported a decrease in cash and cash equivalents by RMB 191,563 thousand, contrasting with an increase of RMB 429,346 thousand in the previous year[200]. - The ending cash and cash equivalents balance was RMB 153,675 thousand, down from RMB 636,499 thousand a year ago[200]. - The cash flow from financing activities resulted in a net outflow of RMB 25,117 thousand, compared to a net outflow of RMB 34,085 thousand in the previous year[200]. Operational Metrics - The volume of cross-border logistics services provided by third parties decreased from 133,363 TEUs in the same period of 2022 to 118,656 TEUs in 2023[92]. - The average price per TEU for cross-border shipping services decreased from approximately RMB 6,920.0 to RMB 3,985.3 due to a decline in market rates[92]. - The number of TEUs handled decreased from 200,575 in 2022 to 118,656 in 2023, reflecting market conditions[113]. - The average daily charter rate for ship leasing increased to RMB 179,100.4, up from RMB 125,516.3 in the previous year, contributing to a 187.0% increase in revenue from ship leasing services[109]. - The company has paused self-operated cross-border logistics services since the second half of 2022 due to declining market rates, while continuing to monitor market conditions[108]. Expenses and Cost Management - Administrative expenses decreased by about 11.6% from RMB 32.9 million for the six months ended June 30, 2022, to RMB 29.1 million for the six months ended June 30, 2023[70]. - Other expenses decreased by approximately 56.3% from RMB 4.8 million for the six months ended June 30, 2022, to RMB 2.1 million for the six months ended June 30, 2023[71]. - Sales and distribution expenses decreased by about 12.6% to RMB 8.3 million, mainly due to reduced salaries and benefits[116]. - The company’s interest income decreased to RMB 324,000 for the six months ended June 30, 2023, from RMB 1,524,000 in the same period of 2022, reflecting a decline of 78.7%[11]. - Financial asset impairment losses increased by approximately 71.4% from RMB 2.1 million for the six months ended June 30, 2022, to RMB 3.6 million for the six months ended June 30, 2023[73]. Strategic Initiatives - The company plans to remain cautious and adjust its service supply strategy based on market conditions in the second half of 2023[111]. - The company expects improved performance in cross-border shipping services in the second half of 2023, driven by traditional peak seasons for routes to the Americas and Europe[95]. - The company plans to continue its strategic initiatives to enhance operational efficiency and market presence[185]. - The company has adopted a share option scheme to reward eligible participants, with a maximum number of shares involved not exceeding 10% of the total issued shares at the time of listing[140]. - The company maintains a conservative risk management strategy, with no use of derivatives for hedging purposes, and closely monitors foreign exchange risks[121][133].