Core Viewpoint - The company reported a decline in revenue and profit for the six months ending June 30, 2025, primarily due to reduced cargo throughput and unfavorable market conditions [1] Financial Performance - Revenue for the period was 80.368 million RMB, representing a year-on-year decrease of 8.2% [1] - Profit attributable to owners was 20.49 million RMB, down 34.6% year-on-year [1] - Basic earnings per share were 2.56 cents [1] Revenue Breakdown - Revenue from loading and unloading services and related port services was approximately 75.1 million RMB, a decrease of about 5.6% year-on-year [1] - The decline in revenue was mainly due to a reduction in cargo handling revenue, which fell due to a decrease of approximately 1.2 million tons in cargo throughput compared to the same period in 2024 [1] - Revenue from port-related services decreased by approximately 2.7 million RMB or 33.8%, primarily due to a decline in logistics agency business caused by unfavorable market conditions [1]

Core Viewpoint - The company reported a decline in revenue and profit for the six months ending June 30, 2025, primarily due to reduced cargo handling volumes and unfavorable market conditions affecting logistics services [1] Financial Performance - Revenue for the period was 80.368 million RMB, a decrease of 8.2% year-on-year [1] - Profit attributable to owners was 20.49 million RMB, down 34.6% year-on-year [1] - Basic earnings per share were 2.56 cents [1] Revenue Breakdown - Revenue from cargo handling and related port services was approximately 75.1 million RMB, a year-on-year decrease of about 5.6% [1] - The decline in cargo handling revenue was attributed to a reduction of approximately 1.2 million tons in cargo throughput compared to the same period in 2024 [1] - Revenue from port ancillary services decreased by approximately 2.7 million RMB or 33.8%, mainly due to a downturn in the logistics agency business caused by adverse market conditions [1]

[Report Statements and GEM Characteristics](index=1&type=section&id=Report%20Statements%20and%20GEM%20Characteristics) This section outlines disclaimers regarding the announcement's content and highlights the higher investment risks associated with the GEM market [Disclaimer and GEM Market Risks](index=1&type=section&id=Disclaimer%20and%20GEM%20Market%20Risks) Hong Kong Exchanges and the Stock Exchange are not responsible for this announcement's content, noting GEM's higher investment risks and potential for significant market volatility - Hong Kong Exchanges and the Stock Exchange are not responsible for the accuracy or completeness of this announcement's content and assume no liability for any losses arising from it[1](index=1&type=chunk) - The GEM market is positioned as a listing platform for small and medium-sized companies, which carry higher investment risks, and their securities may experience significant market volatility with no guarantee of high liquidity[3](index=3&type=chunk) [Directors' Responsibility Statement](index=1&type=section&id=Directors'%20Responsibility%20Statement) The company's directors collectively and individually assume full responsibility for this announcement, confirming its accuracy, completeness, and absence of misleading information - The company's directors collectively and individually assume full responsibility for this announcement, confirming the information is accurate, complete, not misleading or fraudulent, and without omissions[4](index=4&type=chunk) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) This section provides a concise overview of the company's key financial performance indicators for the period [Financial Highlights Overview](index=2&type=section&id=Financial%20Highlights%20Overview) For the six months ended June 30, 2025, revenue decreased by 8.2% to RMB 80,368 '000, while profit attributable to owners declined significantly by 34.6% to RMB 20,490 '000 Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change % | | :--- | :--- | :--- | :--- | | Revenue | 80,368 | 87,553 | -8.2 | | Profit for the period attributable to owners of the Company | 20,490 | 31,336 | -34.6 | | Basic earnings per share | RMB 2.56 cents | RMB 3.92 cents | -34.6 | [Interim Results](index=3&type=section&id=Interim%20Results) This section presents the unaudited condensed consolidated statements of comprehensive income and financial position for the interim period [Unaudited Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group reported revenue of RMB 80,368 '000 and gross profit of RMB 48,669 '000, with profit attributable to owners at RMB 20,490 '000 Condensed Consolidated Statement of Comprehensive Income for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 80,368 | 87,553 | | Cost of services | (31,699) | (35,443) | | Gross profit | 48,669 | 52,110 | | Other income and gains, net | 5,675 | 9,097 | | Selling and distribution expenses | (227) | (591) | | Administrative expenses | (14,044) | (9,441) | | Finance costs | (29) | (44) | | Profit before income tax | 40,044 | 51,131 | | Income tax expense | (11,474) | (8,756) | | Profit for the period | 28,570 | 42,375 | | **Profit for the period attributable to owners of the Company** | **20,490** | **31,336** | | **Profit for the period attributable to non-controlling interests** | **8,080** | **11,039** | [Unaudited Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As at June 30, 2025, total assets were RMB 926,708 '000, with total liabilities of RMB 170,000 '000, resulting in net assets of RMB 756,721 '000 and total equity attributable to owners of RMB 569,145 '000 Condensed Consolidated Statement of Financial Position as at June 30, 2025 | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 516,486 | 502,972 | | Current assets | 410,222 | 405,662 | | **Total assets** | **926,708** | **908,634** | | **Liabilities** | | | | Current liabilities | 132,210 | 143,679 | | Non-current liabilities | 37,777 | 36,229 | | **Total liabilities** | **170,000** | **179,908** | | **Net assets** | **756,721** | **728,726** | | **Equity** | | | | Equity attributable to owners of the Company | 569,145 | 552,078 | | Non-controlling interests | 187,576 | 176,648 | | **Total equity** | **756,721** | **728,726** | [Notes to the Financial Statements](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the interim financial statements, covering general information, accounting policies, and specific financial items [General Information](index=7&type=section&id=General%20Information) The company, incorporated in the Cayman Islands, primarily engages in investment holding, with its subsidiaries operating port services in Chizhou, Anhui Province, China, and listed on GEM in 2018 - The Company was incorporated in the Cayman Islands on October 30, 2017, and listed on GEM of the Stock Exchange of Hong Kong on July 10, 2018[11](index=11&type=chunk) - The Company's principal business is investment holding, with its subsidiaries primarily engaged in port operations in Chizhou, Anhui Province, China[11](index=11&type=chunk) - The unaudited condensed consolidated financial statements are presented in RMB and have been reviewed by the audit committee[13](index=13&type=chunk)[14](index=14&type=chunk) [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) The interim financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, consistent with annual financial statements, except for new HKFRSs effective January 1, 2025 - The unaudited condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure provisions of the GEM Listing Rules[15](index=15&type=chunk) - The accounting policies used are consistent with those in the annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of new and revised Hong Kong Financial Reporting Standards effective January 1, 2025[16](index=16&type=chunk) [Segment Information](index=8&type=section&id=Segment%20Information) The Group operates solely in port services, thus no segment information is presented, with all revenue and major non-current assets originating from China - The Group has only one operating segment, which is the provision of port services, and therefore no segment information is presented in the condensed consolidated financial statements[18](index=18&type=chunk) - The Group provides port services in China, and all revenue for the six months ended June 30, 2025, and 2024, was derived from China[19](index=19&type=chunk) [Revenue](index=8&type=section&id=Revenue) Revenue, primarily from port services, decreased to RMB 80,368 '000 for the six months ended June 30, 2025, with bulk and general cargo handling services contributing the largest share - Revenue refers to income derived from the provision of port services (excluding value-added tax)[20](index=20&type=chunk) Revenue Composition (For the Six Months Ended June 30) | Revenue Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Port service income | 80,368 | 87,553 | | Provision of stevedoring services - bulk and general cargo | 73,368 | 78,100 | | Provision of stevedoring services - containers | 1,689 | 1,433 | | Provision of ancillary port services | 5,311 | 8,020 | [Profit Before Income Tax](index=10&type=section&id=Profit%20Before%20Income%20Tax) Profit before income tax for the six months ended June 30, 2025, decreased to RMB 40,044 '000, primarily due to various operating expenses including employee benefits and depreciation Items Deducted/(Credited) in Arriving at Profit Before Income Tax (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of inventories recognized as an expense | 1,067 | 1,926 | | Employee benefit expenses | 13,598 | 14,073 | | Direct operating expenses from investment properties that generated rental income | 631 | 373 | | Depreciation of property, plant and equipment | 12,751 | 12,359 | | Repair and maintenance expenses | 2,413 | 3,078 | | Subcontracting fees | 6,541 | 9,022 | | Amortisation of deferred government grants | (445) | (445) | | Gain on land resumption | – | (924) | - For the six months ended June 30, 2025, the Group's research and development expenses were approximately **RMB 2,584,000**, of which employee benefit expenses were approximately **RMB 1,736,000**[25](index=25&type=chunk) - A gain on land resumption of approximately **RMB 924,000** was recorded in the corresponding period of 2024, due to Chizhou Port Holdings entering into a compensation agreement with Chizhou Economic and Technological Development Zone Management Committee for the resumption of certain leased land[25](index=25&type=chunk) [Income Tax Expense](index=11&type=section&id=Income%20Tax%20Expense) Income tax expense increased to RMB 11,474 '000 for the six months ended June 30, 2025, primarily due to the expiration of a tax holiday for Chizhou Port Holdings, despite Chizhou Niutoushan enjoying a preferential tax rate Income Tax Expense (For the Six Months Ended June 30) | Tax Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax - PRC Enterprise Income Tax | 9,183 | 7,191 | | Deferred tax charged to profit or loss | 2,291 | 1,565 | | **Total income tax expense** | **11,474** | **8,756** | - Chizhou Port Holdings' eligible projects concluded their three-year 50% tax reduction incentive on December 31, 2024, resulting in the cessation of this benefit in 2025[27](index=27&type=chunk) - Chizhou Port Holdings and Chizhou Niutoushan, as high-tech enterprises, enjoy a preferential tax rate of **15%** in specific fiscal years[27](index=27&type=chunk)[28](index=28&type=chunk) [Earnings Per Share](index=12&type=section&id=Earnings%20Per%20Share) Basic earnings per share for the six months ended June 30, 2025, decreased to RMB 2.56 cents, with diluted earnings per share being identical due to no potential dilutive shares Earnings Per Share Calculation (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 20,490 (RMB '000) | 31,336 (RMB '000) | | Weighted average number of ordinary shares in issue during the period | 800,000,000 shares | 800,000,000 shares | | Basic and diluted earnings per share | RMB 2.56 cents | RMB 3.92 cents | [Dividends](index=12&type=section&id=Dividends) The Board of Directors does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[32](index=32&type=chunk) [Trade Receivables](index=12&type=section&id=Trade%20Receivables) Net trade receivables decreased to RMB 7,118 '000 as at June 30, 2025, with most receivables falling within a 30-day credit period Net Trade Receivables | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables | 7,119 | 7,867 | | Less: Impairment allowance | (1) | (1) | | **Net trade receivables** | **7,118** | **7,866** | - The credit period for trade receivables generally ranges from **10 to 55 days**[35](index=35&type=chunk) Aging Analysis of Trade Receivables (Net of Impairment Allowance) | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 30 days | 7,118 | 6,117 | | 31 to 90 days | – | 1,082 | | 91 to 120 days | – | 667 | | 121 to 365 days | – | – | | Over one year | – | – | | **Total** | **7,118** | **7,866** | [Trade Payables](index=13&type=section&id=Trade%20Payables) Total trade payables increased to RMB 6,768 '000 as at June 30, 2025, with a typical credit period of 30 days - The credit period for trade payables is generally **30 days**[36](index=36&type=chunk) Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 30 days | 2,932 | 2,833 | | 31 to 90 days | 1,783 | 428 | | 91 to 120 days | 106 | 39 | | 121 to 365 days | 282 | 122 | | Over one year | 1,665 | 1,990 | | **Total** | **6,768** | **5,412** | [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business performance, financial results, and future outlook, including key influencing factors and strategic initiatives [Business Review](index=14&type=section&id=Business%20Review) As an inland port operator in China, the Group experienced an 8.7% decrease in bulk and general cargo throughput but a 5.0% increase in container throughput for H1 2025, leading to an 8.2% revenue decline - The Group is an inland port operator in China, primarily providing port logistics services, operating JiangKou Port Area and Niutoushan Port Area, and is the largest public port operator in Chizhou City[38](index=38&type=chunk) Business Performance for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 | June 30, 2024 | Change % | | :--- | :--- | :--- | :--- | | Total bulk and general cargo throughput | 12.7 million tons | 13.9 million tons | -8.7 | | Total container throughput | 8,825 TEUs | 8,406 TEUs | +5.0 | | Revenue | RMB 80.4 million | RMB 87.6 million | -8.2 | | Profit | RMB 28.6 million | RMB 42.4 million | -32.6 | [Influencing Factors and Outlook Analysis](index=14&type=section&id=Influencing%20Factors%20and%20Outlook%20Analysis) Port throughput is affected by global economic pressures, adverse weather, and domestic economic downturns, but the Group anticipates stable freight volumes and new growth from major projects in H2 2025 - Key factors affecting port throughput include: global economic recovery pressure in the international environment, leading to decreased demand for dry bulk shipping; increased domestic economic downturn pressure, sluggish real estate and infrastructure, and a weak market for non-metallic mineral building materials[40](index=40&type=chunk)[43](index=43&type=chunk) - Looking ahead to H2 2025, the Chinese economy is expected to remain relatively subdued but generally stable, with governments at all levels promoting high-quality development, and total port freight volume maintaining a relatively stable and normal range[41](index=41&type=chunk) - The Group is advancing major projects such as the dedicated railway line to the port and the JiangKou Terminal Phase IV, anticipating new rapid development after the railway line becomes operational[42](index=42&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) This financial review details the Group's revenue decline, stable gross margin, increased administrative and income tax expenses, and a decrease in profit for the period and net profit margin [Revenue](index=16&type=section&id=Financial%20Review%2FRevenue) Total revenue for the six months ended June 30, 2025, decreased by 8.2% to RMB 80,368 '000, primarily due to reduced cargo throughput and a decline in logistics agency business Revenue Composition and Changes (For the Six Months Ended June 30) | Revenue Category | 2025 (RMB '000) | 2024 (RMB '000) | Increase/(Decrease) (RMB '000) | Change % | | :--- | :--- | :--- | :--- | :--- | | Stevedoring services - bulk and general cargo | 73,368 | 78,100 | (4,732) | (6.1) | | Stevedoring services - containers | 1,689 | 1,433 | 256 | 17.9 | | Subtotal | 75,057 | 79,533 | (4,476) | (5.6) | | Ancillary port services | 5,311 | 8,020 | (2,709) | (33.8) | | **Total revenue** | **80,368** | **87,553** | **(7,185)** | **(8.2)** | Changes in Cargo Throughput and Container Throughput (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | Total cargo throughput ('000 tons) | 12,711 | 13,915 | (1,204) | (8.7) | | Container throughput (TEUs) | 8,825 | 8,406 | 419 | 5.0 | - The decrease in revenue was primarily due to reduced cargo handling income (a **1.2 million tons** decrease in cargo throughput) and a decline in logistics agency business[45](index=45&type=chunk) [Cost of Services](index=17&type=section&id=Cost%20of%20Services) Cost of services decreased by 10.5% to approximately RMB 31.7 million for the six months ended June 30, 2025, mainly due to reduced staff costs, subcontracting fees, and maintenance expenses - Cost of services primarily includes depreciation of property, plant and equipment, staff costs, subcontracting fees, fuel and oil, consumables, electricity, and repair and maintenance expenses[46](index=46&type=chunk) - For the six months ended June 30, 2025, cost of services was approximately **RMB 31.7 million**, a decrease of **RMB 3.7 million** or approximately **10.5%** compared to the same period last year[46](index=46&type=chunk) - The decrease in cost of services was mainly due to a combined reduction of approximately **RMB 2.7 million** in staff costs and subcontracting fees (due to an **8.7%** decrease in cargo throughput), and a decrease of approximately **RMB 0.7 million** in repair and maintenance expenses[46](index=46&type=chunk) [Gross Profit and Gross Margin](index=17&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by 6.6% to approximately RMB 48.7 million for the six months ended June 30, 2025, while the gross margin remained stable at approximately 60.6% Changes in Gross Profit and Gross Margin (For the Six Months Ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Increase/(Decrease) (RMB '000) | Change % | | :--- | :--- | :--- | :--- | :--- | | Gross profit | 48,669 | 52,110 | (3,441) | (6.6) | | Gross margin (%) | 60.6 | 59.5 | 1.1 | N/A | - The decrease in gross profit was primarily due to an **8.2%** reduction in total revenue compared to the same period last year[47](index=47&type=chunk) [Administrative Expenses](index=17&type=section&id=Administrative%20Expenses) Administrative expenses increased by 48.8% for the six months ended June 30, 2025, primarily due to higher other taxes from land use rights acquisition and increased legal and professional fees - Administrative expenses increased by approximately **RMB 4.6 million** or **48.8%**[48](index=48&type=chunk) - Key reasons include: an increase of approximately **RMB 2.5 million** in other taxes due to related taxes from a subsidiary's acquisition of land use rights; and an increase of approximately **RMB 1.7 million** in legal and professional fees due to more compliance activities during the period[48](index=48&type=chunk) [Income Tax Expense](index=18&type=section&id=Financial%20Review%2FIncome%20Tax%20Expense) Income tax expense increased by 30.7% to approximately RMB 11.5 million for the six months ended June 30, 2025, mainly due to the expiration of a tax holiday for Chizhou Port Holdings - Income tax expense was approximately **RMB 11.5 million**, an increase of **RMB 2.7 million** or approximately **30.7%** compared to the same period last year[49](index=49&type=chunk) - The increase in income tax was mainly due to the expiration of Chizhou Port Holdings' eligible projects' three-year 50% tax reduction incentive on December 31, 2024, resulting in taxation at the standard rate of **25%** in 2025[49](index=49&type=chunk) - For the six months ended June 30, 2025, the effective tax rate was approximately **28.7%**, and the adjusted effective tax rate after excluding deferred tax expense was approximately **22.9%**, which was lower than the standard tax rate mainly due to the high-tech enterprise tax incentive for Chizhou Niutoushan[49](index=49&type=chunk) [Profit for the Period](index=18&type=section&id=Profit%20for%20the%20Period) The Group recorded a profit of approximately RMB 28.6 million for the six months ended June 30, 2025, a decrease from the prior year, with the net profit margin falling to 35.5% Profit for the Period and Net Profit Margin (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period | RMB 28.6 million | RMB 42.4 million | | Net profit margin | 35.5% | 48.4% | [Capital Structure, Liquidity, and Financial Resources](index=18&type=section&id=Capital%20Structure%2C%20Liquidity%2C%20and%20Financial%20Resources) The Group's capital structure remains unchanged since listing, funded by operating cash and equity, with strong financial health, RMB 373.3 million in cash, no outstanding debt, and foreign exchange risk monitoring - The Company's share capital consists solely of ordinary shares, and its capital structure has remained unchanged since its listing on July 10, 2018[51](index=51&type=chunk) - The Group primarily funds its liquidity and capital requirements through cash generated from operations, bank borrowings (if any), and equity contributions from shareholders[51](index=51&type=chunk) Liquidity and Financial Resources (As at June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Bank and cash balances | 373.3 | 379.9 | | Total equity attributable to owners of the Company | 569.1 | 552.1 | | Outstanding debt | Nil | Nil | - The Directors believe the Group's financial position is sound, sufficient to expand its business and achieve its business objectives[53](index=53&type=chunk) - The Group monitors foreign exchange risks and plans to enter into foreign currency options or forward contracts when appropriate[55](index=55&type=chunk) [Significant Investments and Commitments](index=20&type=section&id=Significant%20Investments%20and%20Commitments) The Group committed RMB 10 million to Chizhou Tiehang for a 5% stake in November 2024, with an additional RMB 66.765 million capital commitment approved in March 2025, and no other major acquisitions or disposals during the period - Chizhou Port Holdings entered into a joint venture agreement with four investors on November 9, 2024, to inject **RMB 10,000,000** into Chizhou Tiehang in exchange for a **5%** equity interest[58](index=58&type=chunk) - On March 12, 2025, Chizhou Tiehang's shareholders' meeting approved an increase in additional capital commitment of approximately **RMB 1,335,303,000**, requiring Chizhou Port Holdings to contribute an additional approximately **RMB 66,765,000**[58](index=58&type=chunk) - As at June 30, 2025, Chizhou Port Holdings had injected **RMB 17,365,000** into Chizhou Tiehang[58](index=58&type=chunk) - For the six months ended June 30, 2025, the Group did not acquire or hold any significant investments, nor were there any significant acquisitions or disposals involving subsidiaries, associates, and joint ventures[59](index=59&type=chunk)[60](index=60&type=chunk) Employees and Remuneration (As at June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of employees | Approximately 200 | 205 | | Total staff costs (for six months) | RMB 13.6 million | RMB 14.1 million | [Asset Pledges and Subsequent Events](index=21&type=section&id=Asset%20Pledges%20and%20Subsequent%20Events) As at June 30, 2025, the Group pledged property, plant, and equipment totaling RMB 123.6 million and investment properties totaling RMB 14.5 million, with no significant subsequent events or interim dividend recommendations Pledged Assets (As at June 30) | Asset Category | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Property, plant and equipment | 123.6 | 127.4 | | Investment properties | 14.5 | 14.1 | - As at June 30, 2025, the Group had no contingent liabilities[57](index=57&type=chunk) - No significant events affecting the Group have occurred since the end of the reporting period and up to the date of this announcement[65](index=65&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[66](index=66&type=chunk) [Latest Business Developments](index=21&type=section&id=Latest%20Business%20Developments) Recent business developments include a construction contract for JiangKou Terminal Phase IV, increased capital commitment to Chizhou Tiehang, and the transfer of land use rights to Chizhou Haishun - Chizhou Haishun (a subsidiary in which the Company indirectly holds a **43.2%** effective equity interest) entered into a construction contract with an independent contractor for the JiangKou Terminal Phase IV project, with a consideration of **RMB 146,485,000**[67](index=67&type=chunk) - Chizhou Tiehang's shareholders' meeting approved an increase in additional capital commitment of approximately **RMB 1,335,303,000**, requiring Chizhou Port Holdings to contribute an additional approximately **RMB 66,765,000** to Chizhou Tiehang, with a further injection of **RMB 5,850,000** for the six months ended June 30, 2025[67](index=67&type=chunk) - Chizhou Port Holdings transferred the project land use rights, covering an area of approximately **74,798 square meters**, to Chizhou Haishun for a consideration of approximately **RMB 17,952,000**, and Chizhou Haishun has obtained the property ownership certificate[68](index=68&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) This section covers details on listed securities transactions, competitive interests, and changes in director information [Listed Securities Transactions and Competing Interests](index=22&type=section&id=Listed%20Securities%20Transactions%20and%20Competing%20Interests) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period, and directors confirmed no competing interests with the Group's business - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the six months ended June 30, 2025[69](index=69&type=chunk) - The Directors confirm that none of the Company's controlling shareholders or Directors and their respective close associates have any interests in any business that competes directly or indirectly with the Group's business[70](index=70&type=chunk) [Changes in Directors' Information](index=22&type=section&id=Changes%20in%20Directors'%20Information) Ms. Zhang Huifeng, a non-executive director, was appointed as a member of the Board's Nomination Committee, effective June 16, 2025 - Ms. Zhang Huifeng, a non-executive director, has been appointed as a member of the Board's Nomination Committee, effective June 16, 2025[71](index=71&type=chunk) [Corporate Governance](index=23&type=section&id=Corporate%20Governance) This section details the company's adherence to corporate governance codes, directors' securities dealing code, and the audit committee's review of financial statements [Corporate Governance Code](index=23&type=section&id=Corporate%20Governance%20Code) The company fully complied with the applicable code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules throughout the reporting period - The Company has complied with the applicable code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules throughout the reporting period, with no deviations[72](index=72&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=23&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The Group adopted the Model Code for Securities Transactions by Directors as per GEM Listing Rules, and all directors confirmed compliance during the reporting period - The Group has adopted the required standards for dealing set out in Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for directors' securities transactions in the Company's shares[73](index=73&type=chunk) - Following specific enquiries with the Directors, all Directors have confirmed their compliance with the required standards set out in the code of conduct throughout the reporting period[73](index=73&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the unaudited interim financial statements and found them compliant with accounting standards and disclosure requirements - The Audit Committee comprises three independent non-executive directors: Mr. Zhang Shimin (Chairman), Mr. Nie Rui, and Mr. Zheng Yanbin[74](index=74&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and is of the opinion that the results comply with applicable accounting standards, the GEM Listing Rules, other applicable legal requirements, and provide adequate disclosures[74](index=74&type=chunk) [Board Members and Report Publication](index=24&type=section&id=Board%20Members%20and%20Report%20Publication) As of the announcement date, the Board consists of two executive, one non-executive, and three independent non-executive directors, with this announcement published on the Stock Exchange and company websites - As of the date of this announcement, the executive directors are Mr. Gui Sihai and Mr. Huang Xueliang; the non-executive director is Ms. Zhang Huifeng; and the independent non-executive directors are Mr. Nie Rui, Mr. Zhang Shimin, and Mr. Zheng Yanbin[76](index=76&type=chunk) - This announcement will be published on the Stock Exchange's website and the Company's website for at least seven days from the date of publication[76](index=76&type=chunk)

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 遠航港口發展有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08502 | 說明 | 普通股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | HKD | | 0.01 HKD | | 50,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.01 HKD | | 50,000,000 | 本月底法定/註冊股本總額： HKD 50 ...

Financial Performance - The company achieved a total cargo throughput of 28.3 million tons and generated revenue of RMB 177.0 million with a profit of RMB 88.8 million for the year[8]. - In 2024, the total cargo throughput reached 28.3 million tons, a 2.0% increase from 27.8 million tons in 2023, while container throughput decreased by 11.4% to 17,004 TEUs from 19,199 TEUs[14]. - The group's revenue for 2024 was RMB 177.0 million, up 2.0% from RMB 173.6 million in 2023, with net profit increasing by 9.6% to RMB 88.8 million from RMB 81.1 million[14]. - The revenue from bulk cargo and miscellaneous cargo handling services was RMB 147.2 million, a slight increase of 0.9% from RMB 145.8 million in 2023[19]. - The group recorded a net profit of approximately RMB 88.8 million for the year, an increase of 9.1% compared to RMB 81.1 million in 2023, with a net profit margin of 50.2%[26]. - The income tax expense for the year was approximately RMB 14.7 million, a decrease of 13.5% from RMB 17.0 million in 2023, resulting in an effective tax rate of approximately 14.2%[25]. - The company reported a total reserve available for distribution to shareholders of RMB 32,756,000 as of December 31, 2024, down from RMB 37,824,000 in 2023[62]. Operational Developments - The company implemented cost reduction and efficiency enhancement measures, resulting in significant improvements in internal management practices[11]. - The company is set to commence full construction of the dedicated railway line in 2025, marking a crucial year for its transformation and development[11]. - The company’s logistics park project has been completed and passed inspection, contributing to new cargo sources for the business[8]. - The company aims to enhance its logistics services and port operations in 2025, coinciding with the full-scale construction of dedicated railway lines to the port[17]. - The company is facing challenges such as increased competition from self-owned terminals of large mines and a decline in the non-metallic mineral market, impacting cargo availability[15]. - The management anticipates a stable growth in water transport demand, supported by the overall resilience of the Chinese economy[16]. Innovation and Technology - In 2024, the company successfully authorized 2 utility model patents and 15 software copyrights, with 11 utility patents and 3 invention patents pending[9]. - The company’s technology center was recognized as an "Anhui Provincial Enterprise Technology Center"[9]. - The company is committed to improving operational efficiency and reducing costs, with a focus on innovative practices and risk management strategies[15]. - The CEO has obtained 26 utility model patents and 34 software copyrights since joining the group[38]. - The company is committed to innovation, as evidenced by its significant number of patents and software copyrights obtained by its management[38]. Corporate Governance - The board consists of six members, including two executive directors and three independent non-executive directors, ensuring a diverse skill set relevant to the company's management[105]. - The roles of the chairman and CEO are separated to ensure effective governance and operational efficiency[106]. - The company has adopted a board diversity policy, aiming for a diverse board composition based on gender, age, cultural background, and professional experience[112]. - The company has established a clear framework for the roles and responsibilities of the audit, remuneration, and nomination committees, all composed of independent non-executive directors[132]. - The company has received annual independence confirmations from all independent non-executive directors, affirming their independence[88]. - The company is committed to enhancing its corporate governance practices in line with legal requirements and best practices[104]. Environmental, Social, and Governance (ESG) Initiatives - The company’s ESG report outlines strategies and practices for environmental and social governance for the fiscal year 2024[162]. - The report covers the performance of the company’s two main terminals, Jiangkou and Niutoushan, in environmental protection and social development[163]. - The company has complied with all relevant environmental regulations, including the Water Pollution Prevention Law and the Air Pollution Prevention Law of the People's Republic of China[176]. - The company has implemented environmental measures such as dust screens, water spraying systems, and dust detection systems to control pollution[178]. - The company has identified key ESG issues, including health and safety, product responsibility, and climate change, which are prioritized based on their significance[175]. - The company aims to create long-term value for stakeholders and the communities in which it operates through sustainable development initiatives[173]. Risk Management and Compliance - The company has a zero-tolerance policy towards corruption and fraud, with no reported violations of relevant laws during the reporting year[144]. - The internal control policies cover various operational aspects, including risk assessment, financial reporting, cost management, and employee recruitment, and are reviewed at least annually[140]. - The company has established a whistleblowing policy to allow employees and stakeholders to report misconduct confidentially[144]. - The company emphasizes the importance of internal monitoring measures to prevent future compliance issues and has issued a memorandum to the board and senior management[160]. - The audit committee is responsible for recommending the appointment and remuneration of external auditors, ensuring their independence and objectivity[132]. Human Resources and Employee Engagement - The total number of employees decreased to 205 from 214, which will also be used for calculating other density metrics[183]. - The company has provided training and resources to all directors regarding their responsibilities and relevant regulations[121]. - Directors have participated in continuous professional development, covering topics such as corporate governance and finance[123]. - The company has established an ESG working group to assist the board in overseeing and implementing ESG strategies[170]. Future Outlook - The company aims to maintain or reduce greenhouse gas emissions density in the upcoming year through vehicle management measures and energy-saving policies[184]. - The company plans to continue reducing energy consumption emissions and aims to maintain or decrease emissions density in the next fiscal year, with 2024 as the reference year[196]. - The next annual general meeting is scheduled for May 28, 2025, with voting procedures explained during the meeting[147].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 177,042,000, representing a 2.0% increase from RMB 173,583,000 in 2023[5] - Net profit attributable to the company for the year was RMB 65,623,000, an increase of 11.0% compared to RMB 59,140,000 in the previous year[5] - The overall net profit for the year was RMB 88,836,000, reflecting a 9.6% growth from RMB 81,083,000 in 2023[5] - Gross profit amounted to RMB 117,256,000, up from RMB 111,109,000, indicating a positive trend in profitability[6] - Other income and gains increased to RMB 17,834,000 from RMB 13,600,000, showing a significant growth in additional revenue streams[6] - The company reported a pre-tax profit of RMB 103,561,000, compared to RMB 98,109,000 in the previous year, marking a healthy increase[6] - The total comprehensive income for the year was RMB 88,552,000, up from RMB 80,122,000, indicating overall financial improvement[6] - The company reported a total revenue of RMB 88,836 thousand for the year 2024, up from RMB 81,083 thousand in 2023, representing an increase of approximately 9.5%[7] - The net profit attributable to the company's shareholders was RMB 65,623 thousand in 2024, compared to RMB 59,140 thousand in 2023, reflecting a growth of about 10.5%[7] - The company’s basic and diluted earnings per share rose to RMB 8.20 in 2024 from RMB 7.39 in 2023, representing an increase of about 11%[7] - The company’s total equity attributable to shareholders rose from RMB 486,659 thousand in 2023 to RMB 552,078 thousand in 2024, showing an increase of approximately 13.4%[9] - The company’s retained earnings increased from RMB 479,901 thousand in 2023 to RMB 545,320 thousand in 2024, reflecting a growth of about 13.7%[9] - The company’s cash and cash equivalents increased to RMB 299,267 thousand in 2024 from RMB 225,918 thousand in 2023, marking a rise of approximately 32.4%[8] - The company’s total assets reached RMB 764,955 thousand in 2024, an increase from RMB 683,356 thousand in 2023, indicating a growth of approximately 11.9%[8] - The company’s total liabilities decreased from RMB 318,868 thousand in 2023 to RMB 405,662 thousand in 2024, showing a reduction of about 27.2%[8] Operational Focus and Strategy - The company is focused on expanding its market presence and enhancing its service offerings to drive future growth[4] - Investment in new technologies and product development is a key strategy for the company moving forward[4] - The group aims to enhance its logistics services and port operations in 2025, leveraging the construction of dedicated railway lines to improve efficiency and risk management[46] - The group is committed to increasing market share by actively developing new customers and promoting waterway transportation alternatives[42] - The group has implemented cost reduction and efficiency enhancement measures, including the establishment of a "12 Methods for Cost Reduction and Efficiency Enhancement" initiative[43] - The group recognizes challenges in the port development sector, including geopolitical tensions and fluctuations in shipping costs, which may impact foreign trade cargo volumes[45] - The group faced operational pressure due to macroeconomic downturns and increased competition from self-sufficient terminals established by large mines along the river[41] Governance and Compliance - The board of directors is committed to ensuring the accuracy and completeness of the financial information presented[4] - The consolidated financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance[11] - The company emphasizes strong corporate governance practices, adhering to GEM listing rules and maintaining high standards of accountability and transparency[62] - The audit committee has been established to oversee the appointment and independence of external auditors, ensuring effective financial reporting and risk management[70] - The audit committee has reviewed the consolidated financial performance for the year ending December 31, 2024, and confirmed compliance with applicable accounting standards and GEM listing rules[71] Taxation and Financial Commitments - The company's estimated taxable profit in China is subject to a corporate income tax rate of 25%, with certain subsidiaries enjoying tax exemptions and reductions[27] - A qualified public infrastructure project started on January 1, 2022, will be exempt from 50% of taxes until December 31, 2024[28] - The company’s subsidiary, Qizhou Niutoushan, is recognized as a high-tech enterprise and will pay corporate income tax at a preferential rate of 15% from 2023 to 2025[29] - A capital commitment of approximately RMB 1.34 billion was approved for Chizhou Iron Aviation, with the company contributing approximately RMB 66.77 million[60] - The company plans to increase its capital commitment by approximately RMB 66,765,000 as part of its investment plan for 2025[67] Revenue and Expenses - Revenue from providing unloading services for the year ended December 31, 2024, was approximately RMB 150.4 million, an increase of RMB 1.0 million or about 0.7% compared to 2023[48] - Total revenue for the year ended December 31, 2024, was RMB 177.0 million, an increase of RMB 3.5 million or 2.0% from RMB 173.6 million in 2023[48] - Total cargo throughput increased by 555.6 thousand tons or 2.0% to 28,334.5 thousand tons for the year ended December 31, 2024[48] - Gross profit increased to approximately RMB 117.3 million for the year ended December 31, 2024, with a gross profit margin of 66.2%, up from 64.0% in 2023[50] - Service costs decreased to approximately RMB 59.8 million, a reduction of RMB 2.7 million or about 4.3% compared to RMB 62.5 million in 2023[49] - Administrative expenses increased by approximately RMB 2.7 million or 10.2%, primarily due to an increase in administrative staff costs[51] - Income tax expense for the year ended December 31, 2024, was approximately RMB 14.7 million, a decrease of RMB 2.3 million or about 13.5% from RMB 17.0 million in 2023[52] - The effective tax rate for the year was approximately 14.2%, significantly lower than the standard corporate tax rate of 25% in China[52] Shareholder Information - The company has not declared any dividends for the year ending December 31, 2024[32] - The total proposed final dividend and special dividend for the year ending December 31, 2023, is HKD 48,000,000 (approximately RMB 43,813,000)[31] - The company does not recommend the payment of dividends for the current year[57] Joint Ventures and Projects - A joint venture was established on December 29, 2023, to form Chizhou Haishun Port Service Co., Ltd., with a registered capital of approximately RMB 10.5 million for land use rights[58] - A joint venture was established on November 9, 2024, for the construction and operation of railway lines, with a proposed registered capital of RMB 200 million[61] - The land use rights for a project area of approximately 74,798 square meters will be transferred to Chizhou Haishun for a price of approximately RMB 17.95 million[59] - The land use rights for the project will be transferred to the joint venture for a price of approximately RMB 17,952,000[67] - A construction contract was signed for the Jiangkou Terminal Phase IV project, valued at approximately RMB 146.49 million[61] Employee and Operational Metrics - The company’s employee benefits expenses, including salaries and other benefits, totaled RMB 21,827,000 for the year ending December 31, 2024[25] - Research and development expenses for the year amounted to approximately RMB 8,852,000, up from RMB 8,678,000 in 2023, with employee benefits accounting for about RMB 4,800,000[25] - The group reported a bulk cargo and container throughput of 28.3 million tons and 17,004 standard containers for 2024, representing a year-on-year increase of 2.0% and a decrease of 11.4% respectively compared to 2023[40] - The company operates solely in China, with all revenue generated from providing port services in the region[23] - The company has only one operating segment, which is the provision of port services, and does not report segmented financial data[22] - The geographical location of non-current assets is primarily based in China, aligning with the company's operational focus[23]

遠航港口發展有限公司 OCEAN LINE PORT DEVELOPMENT LIMITED (於開曼群島註冊成立的有限公司) 股份代號 : 8502 中期報告 2024 香港聯合交易所有限公司 (「聯交所」) GEM 的特色 GEM 的定位,乃為中小型公司提供一個上市的市場,此等公司相比起其他在聯交所 上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險, 並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司,在GEM 買賣的證券可能會較於主板買賣之證 券承受較大的市場波動風險,同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責,對其準確性或完整 性亦不發表任何聲明,並明確表示,概不就因本報告全部或任何部分內容而產生或 因依賴該等內容而引致的任何損失承擔任何責任。 | --- | |---------------------------------------------------------------------------------| | | | 本報告乃遵照GEM證券上市規則([GEM上市規則)而 ...

香 港 交 易 及 結 算 所 有 限 公 司 及 聯 交 所 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 （於開曼群島註冊成立的有限公司） （股份代號：8502） 截 至 二 零 二 四 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）GEM的 特 色 GEM的 定 位，乃 為 中 小 型 公 司 提 供 一 個 上 市 的 市 場，此 等 公 司 相 比 起 其 他 在 聯 交 所 上 市 的 公 司 帶 有 較 高 投 資 風 險。有 意 投 資 的 人 士 應 了 解 投 資 於 該 等 公 司 的 潛 在 風 險，並 應 經 過 審 慎 周 詳 的 考 慮 後 方 作 出 投 資 決 定。 由 於GEM上 市 公 司 普 遍 為 中 小 型 公 司，在GEM買 賣 的 證 ...

Operating Performance - The company maintained stable operating performance despite adverse market conditions, with cargo throughput, operating revenue, and profit remaining relatively stable[6]. - In 2023, the total cargo throughput was 27.8 million tons, a decrease of 4.4% from 29.1 million tons in 2022[12]. - Container throughput reached 19,199 TEUs, an increase of 54.3% compared to 12,446 TEUs in 2022[12]. - Total revenue for 2023 was RMB 173.6 million, down 7.4% from RMB 187.4 million in 2022[12]. - The profit for 2023 was RMB 81.1 million, a decrease of 7.3% from RMB 87.5 million in 2022[12]. - The revenue from bulk cargo and general cargo services was RMB 145.8 million, a decrease of 10.2% from RMB 162.4 million in 2022[19]. - Revenue from container services increased by 59.5% to RMB 3.5 million from RMB 2.2 million in 2022[19]. - The gross profit for 2023 was RMB 111.1 million, a decrease of 3.5% from RMB 115.1 million in 2022, while the gross margin improved to 64.0%[22]. Safety and Environmental Compliance - The company reported no significant safety or environmental incidents throughout the year, maintaining all indicators within the set control range[9]. - The company has established an environmental protection and safety department led by a senior manager to oversee compliance with environmental regulations[184]. - The company has obtained all necessary local and national permits, including port operation licenses and hazardous cargo operation certificates[184]. - The company has adhered to all relevant environmental regulations, including the Water Pollution Prevention Law and the Air Pollution Prevention Law of the People's Republic of China[184]. - The company has not been involved in any confirmed violations related to environmental protection that would significantly impact its operations[184]. Strategic Initiatives - The company initiated the dedicated railway line project as part of the multi-modal transport demonstration project, establishing three new companies to advance port and railway construction[7]. - The company plans to focus on innovation and transformation in 2024, marking it as a crucial year for the comprehensive construction of the dedicated railway line[9]. - The company plans to enhance logistics services and infrastructure, including the initiation of a dedicated railway project to improve port connectivity in 2024[17]. Financial Management - The group's income tax expense for the year ended December 31, 2023, was approximately RMB 17.0 million, a decrease of RMB 3.2 million or about 15.8% compared to RMB 20.2 million in 2022[25]. - The net profit for the year was approximately RMB 81.1 million, maintaining a net profit margin of 46.7%, consistent with the previous year[26]. - As of December 31, 2023, the net book value of property, plant, and equipment was approximately RMB 400.3 million, down from RMB 417.4 million in 2022, primarily due to depreciation expenses of RMB 23.4 million[27]. - The group's bank and cash balance was approximately RMB 301.6 million as of December 31, 2023, an increase from RMB 288.8 million in 2022[28]. - The company did not recommend the payment of dividends for the year[32]. Corporate Governance - The company has confirmed compliance with relevant laws and regulations, with no significant non-compliance events reported for the year ending December 31, 2023[99]. - The company has adopted a board diversity policy, aiming for at least one board member of a different gender and at least one member with accounting or other professional qualifications[121]. - The company has maintained compliance with the corporate governance code and has not deviated from the applicable provisions during the reporting period[113]. - The board consists of six directors, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse skill set and experience relevant to the group's business management[110]. - The independent non-executive directors possess valuable experience and expertise in legal, accounting, or business auditing fields, providing neutral opinions and independent judgments[113]. Environmental, Social, and Governance (ESG) Initiatives - The company’s ESG report outlines strategies and performance in environmental and social aspects for the fiscal year 2023, covering operations at Jiangkou and Niutoushan terminals[166][167]. - The company has established an ESG working group to assist the board in monitoring and promoting the implementation of ESG strategies[173]. - The company focuses on maintaining close communication with stakeholders to enhance its sustainable development strategies[177]. - The company aims to create long-term value for all stakeholders and the communities in which it operates[173]. Energy and Emissions Management - Total greenhouse gas emissions for the year amounted to 8,789,957.17 kg CO2 equivalent, an increase of 14.6% from 7,669,569.20 kg CO2 equivalent in the previous year[189]. - The company aims to maintain or reduce total greenhouse gas emissions density in the upcoming year, using 2023 as the baseline year[189]. - The company is gradually replacing high-emission diesel-powered port transport machinery with electric alternatives[189]. - The company has implemented energy-saving measures such as turning off unused lighting and equipment to reduce energy consumption[196]. - Water consumption for domestic use was recorded at 27,587.00 cubic meters in 2023, slightly up from 27,252.33 cubic meters in 2022, reflecting a 1.23% increase[200].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 173,583,000, a decrease of 7.4% compared to RMB 187,377,000 in 2022[2] - Net profit attributable to the company for the year was RMB 59,140,000, down 7.7% from RMB 64,092,000 in the previous year[2] - Overall profit for the year was RMB 81,083,000, reflecting a decline of 7.3% from RMB 87,453,000 in 2022[2] - Revenue for the period was 173,583 million, compared to 187,377 million in the previous period, reflecting a decrease of approximately 7.6%[26] - Gross profit decreased to 111,109 million from 115,133 million, indicating a decline of about 3.5%[26] - Net income attributable to the company was 59,140 million, down from 64,092 million, representing a decrease of approximately 7.5%[28] - Basic and diluted earnings per share decreased to 7.39 from 8.01, a decline of about 7.8%[28] - The gross profit for the year ended December 31, 2023, decreased to approximately RMB 111.1 million, primarily due to a 4.4% reduction in cargo throughput[81] - The company recorded a profit of approximately RMB 81.1 million for the year, with a net profit margin of 46.7%, consistent with the previous year's margin[115] Assets and Liabilities - Total assets decreased to 683,356 million from 662,161 million, showing an increase of approximately 3.0%[29] - Non-current assets, including property, plant, and equipment, decreased to 400,307 million from 417,373 million, a decline of about 4.1%[29] - Current liabilities decreased to 148,946 million from 150,995 million, reflecting a decrease of approximately 1.4%[29] - Cash and cash equivalents increased to 299,267 million from 253,465 million, an increase of about 17.9%[29] - The net book value of property, plant, and equipment as of December 31, 2023, was approximately RMB 400.3 million, a decrease from RMB 417.4 million in 2022[84] - As of December 31, 2023, the group had no outstanding bank borrowings, with cash and bank balances amounting to approximately RMB 301.6 million, an increase from RMB 288.8 million the previous year[116] Expenses - Administrative expenses increased to (26,340) million from (19,563) million, reflecting an increase of about 34.6%[26] - Employee benefits expenses increased to RMB 32,676,000 in 2023 from RMB 29,972,000 in 2022, reflecting a rise of approximately 9%[43] - Research and development expenses amounted to approximately RMB 8,678,000 in 2023, up from RMB 3,770,000 in 2022, indicating a significant increase in investment in innovation[64] - Service costs for the year amounted to RMB 62.5 million, a decrease of RMB 9.7 million or approximately 13.4% compared to RMB 72.2 million in the previous year[113] - The group reported a decrease in the cost of services provided, with a notable reduction in maintenance and repair expenses from RMB 10,804,000 in 2022 to RMB 2,007,000 in 2023[43] Dividends - The company did not recommend the payment of a final dividend for the year[49] - The board has proposed a final dividend of HKD 0.03 per share, totaling approximately RMB 43,813,000, subject to shareholder approval[69] - The group will not recommend the payment of a final dividend for the year[102] Market and Economic Conditions - The company faced challenges due to slower-than-expected economic recovery and low prices for non-mineral products[54] - The company anticipates that external factors such as geopolitical tensions and economic slowdowns will continue to impact shipping demand negatively[75] - The company expects government policies to support infrastructure investment, which may help stabilize shipping demand in the long term[76] - The company is positioned to benefit from significant government support for water transport development in Anhui Province[152] Operational Developments - The company successfully introduced foreign trade shipping companies, enhancing container business operations and achieving record container volumes for the year[55] - The company processed a total of 19,199 standard containers in 2023, which is an increase of 54.3% compared to 12,446 standard containers in 2022[78] - The company is committed to improving its port and logistics services to better meet market demands and enhance performance in 2024[92] - The company plans to advance the construction of a dedicated railway line project, with full-scale construction expected to commence in 2024[92] - The company is actively developing new customers and enhancing market share through aggressive marketing strategies[143] Taxation - The company has been recognized as a high-tech enterprise and will pay corporate income tax at a preferential rate of 15% from 2023 to 2025[67] - The group’s income tax expense for the year ended December 31, 2023, was approximately RMB 17.0 million, a decrease of RMB 3.2 million or about 15.8% compared to RMB 20.2 million in 2022[83] - The actual tax rate for the year ended December 31, 2023, was approximately 17.4%, down from 18.8% in 2022, primarily due to tax incentives from qualified projects[83] - The company’s qualified project will enjoy a 50% tax exemption until December 31, 2024[140] - The tax rate for the subsidiary Chizhou Logistics, qualifying as a small and micro enterprise, is set at 12.5% on taxable income not exceeding RMB 1 million[128] Joint Ventures and Investments - The establishment of Chizhou Huida Port Transportation Co., Ltd. was completed, with the company holding a 26% stake and an expected investment of RMB 26 million[117] - The company has established a joint venture named Chizhou Guohai Port Service Co., Ltd. with a registered capital of RMB 100,000,000, where the company holds a 60% stake[121] - The company plans to invest RMB 60,000,000 in the joint venture, Chizhou Guohai, which will engage in cargo handling, storage, and logistics services[121] - A construction contract was signed for a warehouse with an area of approximately 12,041 square meters at a cost of RMB 15.1 million[118] - The company established a joint venture, Chizhou Railway Construction Operation Co., Ltd., on June 16, 2023, to engage in railway construction and operation in China[155] Compliance and Governance - The audit committee has reviewed the financial performance for the year ending December 31, 2023, confirming compliance with applicable accounting standards and GEM listing rules[137]