嘉泓物流(02130) - 2025 - 中期财报

Company Information Directors and Committees This section outlines the composition of the Board of Directors and its various committees, including executive and independent non-executive members - Executive Directors include Mr. Lau Shek Yau (Chairman), Mr. Ngan Tim Wing (Chief Executive Officer), Ms. Chan Nga Man, Ms. Augusta Morandin, and Mr. Fabio Di Nello[3] - The company has an Audit Committee, Remuneration Committee, Nomination Committee, Corporate Governance Committee, and Risk and Compliance Committee, all composed of Board members[3] Registered and Business Locations The company is registered in the Cayman Islands, with its headquarters and principal place of business in Hong Kong, and lists details of legal advisors, share registrar, principal bankers, and auditors - The registered office is located at Cricket Square, Cayman Islands[3] - The headquarters and principal place of business in Hong Kong are located at Unit B, 13th Floor, Park Sun Building, 97–107 Wo Yi Hop Road, Kwai Chung, New Territories, Hong Kong[4] - The auditor is KPMG, and the stock code is 2130[5] Management Discussion and Analysis Business Review The Group primarily provides integrated logistics services, focusing on high-end fashion products and fine wines, achieving a 19.4% revenue increase to HK$1,461.5 million in H1 2025, despite a 17.2% decrease in profit attributable to equity holders - The Group primarily engages in providing integrated logistics services, specializing in high-end fashion products (including luxury and affordable luxury goods) and fine wine products[7] - The Group operates 28 local branch offices in 16 countries and regions globally, collaborating with over 100 business partners across more than 100 countries[7] 2025 H1 Financial Performance Overview | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Growth/Decline | | :--- | :--- | :--- | :--- | | Revenue | 1,461.5 | 1,223.6 | +19.4% | | Profit attributable to equity holders | 15.4 | 18.6 | -17.2% | Geographical Analysis The Group achieved revenue growth across Greater China, Europe, and Southeast Asian markets, driven by e-commerce, luxury demand, RCEP, and "China+1" strategies Regional Revenue Performance (2025 H1) | Region | 2025 H1 Revenue (HK$ million) | 2024 H1 Revenue (HK$ million) | YoY Growth | | :--- | :--- | :--- | :--- | | Greater China | 618.5 | 510.9 | +21.1% | | Europe (Italy) | 349.7 | 303.9 | +15.1% | | Southeast Asia (Vietnam) | 52.3 | 31.87 | +64.1% | | Southeast Asia (Indonesia) | 8.6 | 6.78 | +26.8% | - Revenue growth in Greater China benefited from increased business volume and e-commerce contributions, particularly through Cargo Services Express Limited ("Cargo Services Express") related e-commerce orders[9] - European market growth was driven by strong luxury demand and rapid e-commerce expansion, especially in air freight forwarding and last-mile delivery[10] - Southeast Asian markets (Vietnam and Indonesia) benefited from the implementation of the Regional Comprehensive Economic Partnership (RCEP) and the "China+1" strategy adopted by Chinese companies[11] Cargo Services Express and Cruise Logistics Cargo Services Express experienced strong growth in the reporting period, with revenue increasing by 178.6% year-on-year, while cruise logistics revenue also grew but faced margin pressure due to project delays from US tariff policies Cargo Services Express and Cruise Logistics Revenue (2025 H1) | Business Segment | 2025 H1 Revenue (HK$ million) | 2024 H1 Revenue (HK$ million) | YoY Growth | | :--- | :--- | :--- | :--- | | Cargo Services Express | 246.1 | 88.3 | +178.6% | | Cruise Logistics | 254.9 | 226.4 | +12.6% | - Cargo Services Express has successfully expanded its service scope with major Chinese e-commerce platforms, including freight forwarding, customs clearance, and last-mile delivery services to more cities in Europe and Africa[13] - Despite revenue growth, the cruise logistics business's profit margins were impacted by the US "reciprocal tariff" policy, which led some cruise operators to postpone major upgrade and renovation projects[15] Financial Performance and Segment Analysis The Group's H1 2025 revenue increased by 19.4%, with gross profit up 6.0%; air freight forwarding remained the largest segment with significant revenue growth, while ocean freight forwarding saw substantial revenue and gross profit increases, and distribution and logistics services declined 2025 H1 Key Financial Indicators | Indicator | 2025 H1 (HK$ million) | 2024 H1 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,461.5 | 1,223.6 | +19.4% | | Gross Profit | 241.8 | 228.3 | +6.0% | | EBITDA | 93.6 | 104.9 | -10.8% | - Air freight forwarding services, the Group's largest segment, accounted for approximately 42.9% of total revenue, with revenue increasing by 24.6% year-on-year to HK$627.4 million, primarily driven by Cargo Services Express's e-commerce focused logistics solutions business[19] - Ocean freight forwarding services revenue increased by 37.5% year-on-year to HK$424.7 million, and gross profit increased by 74.0% to HK$90.3 million, mainly due to rising ocean freight rates, a rebound in China's import shipments, growth in Southeast Asian exports, and new collaborations with Japanese automotive brands[20] - Revenue from distribution and logistics services decreased by 16.4% year-on-year to HK$154.5 million, with gross profit falling by 45.8% to HK$7.7 million, primarily due to weakened demand for luxury goods in the local Chinese market[25] Liquidity, Financial Resources, and Capital Structure The Group maintains a robust liquidity position with stable working capital and cash equivalents, significantly increased operating cash inflow, and an improved debt-to-equity ratio to a net cash position, while facing foreign exchange risks without specific hedging policies Liquidity and Financial Resources Overview | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Working Capital | 161.9 | 143.9 | Increase | | Current Ratio | 1.15 | 1.15 | Stable | | Cash and Cash Equivalents | 263.7 | 255.0 | Stable | | Operating Cash Inflow | 49.5 | 15.0 (2024 H1) | Significant Increase | | Outstanding Bank Loans and Overdrafts | 363.3 | 384.1 | Decrease | | Debt-to-Equity Ratio | -24.3% | 35.2% | Improvement (Net Cash Position) | - The Group's working capital increased from approximately HK$143.9 million as of December 31, 2024, to HK$161.9 million as of June 30, 2025, with the current ratio remaining stable at 1.15[26] - The Group is exposed to foreign exchange risks from EUR, GBP, RMB, TWD, and USD, with RMB fluctuations having a greater impact, but does not maintain any specific hedging policies or foreign currency forward contracts for these risks[28] Other Financial Information During the reporting period, the Group had no significant investments, capital expenditure commitments, major acquisitions or disposals of subsidiaries and associates, or material events after the reporting period, with contingent liabilities primarily comprising financial guarantees for subsidiary bank facilities - The Group held no significant investments and had no significant capital commitments contracted but not provided for during the reporting period[29][30] - Contingent liabilities primarily consist of financial guarantees provided by the company to banks for certain bank facilities entered into by its subsidiaries, with a maximum liability of HK$331.2 million[31] - No significant acquisitions or disposals of subsidiaries and associates, nor other material events, occurred during or after the reporting period[33][34] Use of Proceeds The Group raised approximately HK$35.6 million in net proceeds from a share subscription in May 2021; as of June 30, 2025, HK$7.7 million has been used for business expansion in Hainan, Southeast Asia, and the UK, with the remaining HK$19.7 million expected to be utilized by June 2, 2026 - On May 18, 2021, the company entered into a subscription agreement with Mr. Chan Wing Luk, raising net proceeds of approximately HK$35.6 million[35] Net Proceeds from Share Subscription (as of June 30, 2025) | Use | Net Proceeds (HK$ million) | Unutilized as of Jan 1, 2025 (HK$ million) | Utilized during Reporting Period (HK$ million) | Unutilized as of June 30, 2025 (HK$ million) | Expected Utilization Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | Expansion of business and local presence in Hainan, Southeast Asia, and the UK | 35.6 | 27.4 | 7.7 | 19.7 | On or before June 2, 2026 | Outlook The Group remains optimistic about the global logistics industry's recovery and plans to drive organic growth and enhance market competitiveness by expanding into new vertical sectors like aerospace, strengthening e-commerce platform collaborations (especially Cargo Services Express), and deepening synergies with controlling shareholder DP World - The Group has successfully expanded into perishable goods and automotive sectors, and recently entered the aerospace industry, providing freight forwarding and local transportation services for critical aircraft components to major aviation and engineering companies in China, Singapore, and Taiwan[37] - Cargo Services Express will continue to strengthen collaborations with e-commerce platforms, having partnered with several other globally renowned platforms to provide freight forwarding, customs clearance, and last-mile delivery services from China to South Africa, Algeria, and the UK[38] - The Group will enhance synergies with its controlling shareholder, DP World, leveraging its extensive global network to offer more comprehensive services and gain new client referrals, expecting to further deepen synergies and consolidate its market position[39] Human Resources and Dividends As of June 30, 2025, the Group's employee count increased to 883, with a corresponding rise in employee costs, and the Board has declared an interim dividend of HK$0.01 per ordinary share, totaling HK$3,004,890 Human Resources and Employee Costs | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Employees | 883 employees | 823 employees | | Employee Costs (HK$ million) | 172.021 | 166.624 | - The Board has declared an interim dividend of HK$0.01 per ordinary share for the reporting period, totaling HK$3,004,890, expected to be paid on October 30, 2025[42] - To determine the entitlement to the interim dividend, the company will suspend share transfer registration from October 3, 2025, to October 8, 2025[43] Corporate Governance and Other Information Directors' and Major Shareholders' Interests This section discloses the interests of directors and chief executives in the company's and associated corporations' shares, as well as major shareholders' interests in the company's shares as of June 30, 2025, with DP World Limited being the largest shareholder holding approximately 57.9% Directors' and Chief Executives' Interests in Company Shares (June 30, 2025) | Name | Capacity/Nature of Interest | Number and Class of Securities | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Ngan Tim Wing | Beneficial Owner | 21,241,203 shares (L) | 7.1% | | Ms. Chan Nga Man | Beneficial Owner | 1,256,099 shares (L) | 0.4% | | Ms. Augusta Morandin | Beneficial Owner | 10,000,000 shares (L) | 3.3% | | Mr. Fabio Di Nello | Beneficial Owner | 10,000,000 shares (L) | 3.3% | Major Shareholders' Interests in Company Shares (June 30, 2025) | Shareholder Name/Entity | Capacity/Nature of Interest | Number and Class of Securities | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | DP World Limited | Interest in Controlled Corporation | 173,845,222 shares (L) | 57.9% | | Chan Wing Luk | Beneficial Owner | 24,857,000 shares (L) | 8.3% | | Ms. Ngan Au Kei Yee | Spouse's Interest | 21,241,203 shares (L) | 7.1% | Share Option and Share Award Schemes The company operates a share option scheme and a share award scheme to incentivize and attract talent, with the share option scheme adopted in September 2020 for up to 25,000,000 shares and the share award scheme adopted in May 2021 for up to 10% of issued shares, neither of which has granted, exercised, or cancelled any options or awards as of the reporting date - The Share Option Scheme was adopted on September 17, 2020, to provide incentives or rewards to selected participants who have contributed to the success of the Group's business, with a validity period of ten years[51] - The maximum number of share options available for grant under the Share Option Scheme is 25,000,000 shares, representing approximately 8.3% of the total issued shares as of the reporting date[51] - The Share Award Scheme was adopted on May 6, 2021, to recognize and motivate eligible persons for their contributions, with a validity period of ten years[54] - The total number of shares that may be awarded under the Share Award Scheme shall not exceed 10% of the total issued shares from time to time[55] - Since their adoption, neither the Share Option Scheme nor the Share Award Scheme has granted, exercised, or cancelled any share options or awards[53][56] Corporate Governance Practices and Audit Committee The company has complied with the Corporate Governance Code under Appendix C1 Part 2 of the Listing Rules and established a code of conduct for directors' securities transactions, while the Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited consolidated financial results, accounting principles, and internal control systems - The company has adopted and confirmed compliance with the code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules during the reporting period[57] - The company has established its own code of conduct for directors' dealings in the company's securities, and each director confirmed compliance with both this code and the Model Code throughout the reporting period[59] - The Audit Committee, comprising three independent non-executive directors (Mr. Lam Hing Lun, Mr. Chun Che Man, and Mr. Chan Chun Hung), has discussed with management and external auditors and reviewed the Group's unaudited consolidated financial results and related systems for the reporting period[60] Review Report on Interim Financial Information KPMG reviewed Cargo Services Logistics International Holdings Limited's interim financial information for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410, concluding that nothing came to their attention to suggest the interim financial information is not prepared in all material respects in accordance with HKAS 34 - KPMG has conducted a review in accordance with Hong Kong Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity," issued by the Hong Kong Institute of Certified Public Accountants[63] - Based on the review, nothing has come to the reviewer's attention that causes them to believe the interim financial information for the six months ended June 30, 2025, is not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[64] Consolidated Statement of Profit or Loss This consolidated statement of profit or loss presents the Group's financial performance for the six months ended June 30, 2025, reporting revenue of HK$1,461,540 thousand, gross profit of HK$241,848 thousand, profit for the period of HK$19,093 thousand, with profit attributable to equity holders of HK$15,429 thousand, and basic and diluted earnings per share of HK$0.053 Consolidated Statement of Profit or Loss Key Data (Six Months Ended June 30, 2025) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 1,461,540 | 1,223,581 | | Gross Profit | 241,848 | 228,250 | | Operating Profit | 47,908 | 50,033 | | Profit for the Period | 19,093 | 20,248 | | Profit Attributable to Equity Holders of the Company | 15,429 | 18,610 | | Earnings Per Share (HK cents) | 5.3 | 6.4 | Consolidated Statement of Profit or Loss and Other Comprehensive Income This consolidated statement of profit or loss and other comprehensive income shows the Group's profit for the period and other comprehensive income for the six months ended June 30, 2025, with total comprehensive income for the period at HK$46,645 thousand, of which HK$41,152 thousand is attributable to equity holders of the company and HK$5,493 thousand to non-controlling interests Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (Six Months Ended June 30, 2025) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the Period | 19,093 | 20,248 | | Other Comprehensive Income for the Period (net of tax) | 27,552 | (14,151) | | Total Comprehensive Income for the Period | 46,645 | 6,097 | | Total Comprehensive Income Attributable to Equity Holders of the Company | 41,152 | 6,253 | | Total Comprehensive Income Attributable to Non-controlling Interests | 5,493 | (156) | - Other comprehensive income primarily includes exchange differences on translating financial statements of subsidiaries and associates outside Hong Kong, amounting to HK$27,796 thousand in 2025 and (HK$14,233) thousand in 2024[68] Consolidated Statement of Financial Position This consolidated statement of financial position presents the Group's assets, liabilities, and equity as of June 30, 2025, with total assets of HK$1,751,461 thousand, total liabilities of HK$1,168,603 thousand, and net assets of HK$582,858 thousand, of which total equity attributable to equity holders of the company is HK$553,969 thousand Consolidated Statement of Financial Position Key Data (as of June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | 490,033 | 474,324 | | Current Assets | 1,261,428 | 1,126,464 | | Current Liabilities | 1,099,554 | 982,521 | | Non-current Liabilities | 69,049 | 69,809 | | Net Assets | 582,858 | 548,458 | | Total Equity Attributable to Equity Holders of the Company | 553,969 | 512,767 | | Non-controlling Interests | 28,889 | 35,691 | Consolidated Statement of Changes in Equity This consolidated statement of changes in equity illustrates the Group's equity movements for the six months ended June 30, 2025, showing an increase in total equity attributable to equity holders of the company from HK$512,767 thousand on January 1, 2025, to HK$553,969 thousand on June 30, 2025, primarily due to profit for the period and other comprehensive income contributions Consolidated Statement of Changes in Equity Key Data (Six Months Ended June 30, 2025) | Indicator | Balance as of Jan 1, 2025 (HK$ thousand) | Profit for the Period (HK$ thousand) | Other Comprehensive Income (HK$ thousand) | Total Comprehensive Income (HK$ thousand) | Balance as of June 30, 2025 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Equity Attributable to Equity Holders of the Company | 512,767 | 15,429 | 25,723 | 41,152 | 553,969 | | Non-controlling Interests | 35,691 | 3,664 | 1,829 | 5,493 | 28,889 | | Total Equity | 548,458 | 19,093 | 27,552 | 46,645 | 582,858 | - Dividends of HK$12,295 thousand were paid to non-controlling interests during the period[73] Condensed Consolidated Statement of Cash Flows This condensed consolidated statement of cash flows summarizes the Group's cash movements for the six months ended June 30, 2025, reporting net cash generated from operating activities of HK$49,482 thousand, net cash generated from investing activities of HK$5,466 thousand, and net cash used in financing activities of HK$59,346 thousand, resulting in a net decrease in cash and cash equivalents of HK$4,398 thousand Condensed Consolidated Statement of Cash Flows Key Data (Six Months Ended June 30, 2025) | Activity Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash Generated From/(Used In) Operating Activities | 49,482 | (15,026) | | Net Cash Generated From/(Used In) Investing Activities | 5,466 | (15,009) | | Net Cash Used In Financing Activities | (59,346) | (19,464) | | Net Decrease in Cash and Cash Equivalents | (4,398) | (49,499) | | Cash and Cash Equivalents as of June 30 | 263,640 | 208,417 | Notes to the Unaudited Interim Financial Information Basis of Preparation and Changes in Accounting Policies This interim financial report is prepared in accordance with HKAS 34 and reviewed by KPMG, with the Group applying HKAS 21 (Amendments) "The Effects of Changes in Foreign Exchange Rates — Lack of Exchangeability," which had no material impact on this report - The interim financial report is prepared in accordance with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[75] - The interim financial report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[76] - The Group has applied Hong Kong Accounting Standard 21 (Amendments) "The Effects of Changes in Foreign Exchange Rates — Lack of Exchangeability" issued by the Hong Kong Institute of Certified Public Accountants to the interim financial report for this accounting period, but these amendments had no material impact on this interim report as the Group did not enter into any foreign currency transactions where one foreign currency is not exchangeable into another currency[77] Revenue and Segment Information The Group primarily offers air freight forwarding, ocean freight forwarding, distribution and logistics, and cruise logistics services, with total revenue of HK$1,461,540 thousand in H1 2025, predominantly from air freight forwarding services, and detailed disclosures for each segment's revenue and gross profit, as well as revenue by geographical location Revenue from Contracts with Customers by Major Service Item (HK$ thousand) | Service Item | 2025 | 2024 | | :--- | :--- | :--- | | Provision of Air Freight Forwarding Services | 627,359 | 503,592 | | Provision of Ocean Freight Forwarding Services | 424,718 | 308,940 | | Provision of Distribution and Logistics Services | 154,515 | 184,659 | | Provision of Cruise Logistics Services | 254,948 | 226,390 | | Total | 1,461,540 | 1,223,581 | Revenue from Customers by Geographical Location (HK$ thousand) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Hong Kong | 284,883 | 258,302 | | Mainland China | 333,627 | 252,615 | | Italy | 349,739 | 303,858 | | United States | 240,114 | 224,835 | | Other Countries | 189,090 | 124,582 | | Total | 1,461,540 | 1,223,581 | - Revenue from providing air freight forwarding services, ocean freight forwarding services, and cruise logistics services is recognized over time, while revenue from providing distribution and logistics services is recognized at a point in time when the related services are provided[80] Profit Before Tax and Income Tax This section details the expenses affecting profit before tax, including finance costs, depreciation, and amortization of intangible assets, with total income tax of HK$18,821 thousand primarily comprising Hong Kong profits tax, overseas taxes, and withholding tax on distributable profits of subsidiaries Finance Costs (HK$ thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on bank loans and overdrafts | 9,859 | 10,384 | | Interest arising from loans from DP World Group | 93 | — | | Interest on lease liabilities | 1,818 | 2,599 | | Total | 11,770 | 12,983 | Income Tax (HK$ thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current tax — Hong Kong profits tax | 2,085 | 1,855 | | Current tax — Outside Hong Kong | 18,151 | 16,499 | | Withholding tax on distributable profits of subsidiaries | 2,258 | 1,981 | | Deferred tax | (3,673) | (1,502) | | Total | 18,821 | 18,833 | - Hong Kong profits tax provision is calculated at a rate of 16.5% on the estimated assessable profits for the six months ended June 30, 2025, while withholding tax rates imposed by Taiwan and French tax authorities on dividend income received from subsidiaries incorporated in relevant countries and regions were 21% and 10% respectively for the six months ended June 30, 2025[95][96] Earnings Per Share and Asset Changes This section provides the calculation of basic earnings per share and details changes in property, plant and equipment, right-of-use assets, and goodwill, noting that diluted earnings per share are the same as basic earnings per share, and goodwill is primarily allocated to Taiwan's air freight forwarding business and Allport Cruise Group's cruise logistics business Basic Earnings Per Share Calculation Basis (thousand shares) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Ordinary shares in issue as of Jan 1 | 300,489 | 276,100 | | Weighted average number of ordinary shares as of June 30 | 292,692 | 292,692 | - For the six months ended June 30, 2025, basic earnings per share were HK$0.053, which was the same as diluted earnings per share, as there were no dilutive potential ordinary shares[67][98] - The Group acquired property, plant and equipment at a cost of HK$2,899 thousand and recognized additions to right-of-use assets of HK$41,273 thousand during the reporting period[99][100] Goodwill Allocation (HK$ thousand) | Cash Generating Unit | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Air freight forwarding business — Taiwan | 21,188 | 24,104 | | Cruise logistics business — Allport Cruise Group | 201,036 | 203,197 | | Total | 222,224 | 227,301 | Receivables, Payables, and Cash Flow This section details the composition and changes in loans receivable, trade and other receivables and contract assets, pledged bank deposits, cash and cash equivalents, and trade and other payables and contract liabilities, noting that loans receivable include a loan to an employee, and a loan to a director was settled in March 2025 - Loans receivable include an unsecured loan of US$1,750,000 (approximately HK$13,636 thousand) provided to an employee, bearing interest at 5% per annum, repayable in five annual installments over five years by August 31, 2029[102] - A loan of HK$2,800 thousand provided to a director was settled in March 2025[103] Trade Receivables Ageing Analysis (HK$ thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 469,275 | 432,883 | | 1 to 2 months | 85,999 | 63,671 | | 2 to 3 months | 46,863 | 25,111 | | Over 3 months | 15,041 | 13,249 | | Trade receivables, net of loss allowance | 617,178 | 534,914 | Trade Payables Ageing Analysis (HK$ thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 270,354 | 228,272 | | 1 to 3 months | 57,004 | 68,235 | | Over 3 months | 14,779 | 11,832 | | Trade payables | 342,137 | 308,339 | - Pledged bank deposits of approximately HK$2,415 thousand are used to secure certain bank facilities to guarantee payments to the Group's airline suppliers and performance bonds for customers[106] Bank Loans and Overdrafts The Group's total bank loans and overdrafts amount to HK$363,302 thousand, primarily comprising unsecured bank loans and supplier financing arrangements, with annual interest rates ranging from 1.25% to 6.85%, and the Group has complied with all bank financing covenants without default Bank Loans and Overdrafts Repayment Analysis (HK$ thousand) | Repayment Term | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year or on demand | 361,338 | 381,531 | | After 1 year but within 2 years | 824 | 1,504 | | After 2 years but within 5 years | 1,140 | 1,040 | | Total | 363,302 | 384,075 | Bank Loans and Overdrafts Type Analysis (HK$ thousand) | Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unsecured bank overdrafts | 32 | 87 | | Unsecured bank loans — supplier financing arrangements | 223,956 | 205,122 | | Unsecured bank loans | 139,214 | 178,866 | | Total | 363,202 | 384,075 | - Bank loans bear annual interest rates ranging from 1.25% to 6.85% (December 31, 2024: 1.10% to 7.52% per annum), and the Group has entered into certain post-shipment buyer loan arrangements with banks, presenting amounts payable to banks as "Bank loans and overdrafts"[109][111] - The Group regularly monitors its compliance with bank financing covenants, and as of June 30, 2025, and December 31, 2024, there were no breaches of covenants related to drawing down financing[110] Capital, Reserves, and Dividends The company has 300,489,000 ordinary shares in issue, with subsidiaries declaring and paying dividends of HK$12,295 thousand to non-controlling interests during the reporting period, and the Board has declared an interim dividend of HK$0.01 per ordinary share, while the trustee under the share award scheme has purchased 7,791,000 shares but has not granted any shares to individuals - As of June 30, 2025, the company had 300,489,000 ordinary shares in issue (December 31, 2024: 300,489,000 ordinary shares)[113] - During the six months ended June 30, 2025, the Group's subsidiaries declared and paid dividends of HK$12,295 thousand to non-controlling interests[114] - On August 25, 2025, the company declared an interim dividend of HK$0.01 per ordinary share for the period ended June 30, 2025[114] - Under the Share Award Scheme, the trustee has purchased 7,791,000 shares of the company on the Stock Exchange of Hong Kong, totaling approximately HK$25,628 thousand, but as of June 30, 2025, and December 31, 2024, no shares had been granted to any individuals under the Share Award Scheme[116] Fair Value Measurement of Financial Instruments This section discloses the Group's fair value measurements of financial instruments, classified into three fair value hierarchy levels according to HKFRS 13, primarily including unlisted and listed equity securities, with unlisted equity securities' fair values estimated using significant unobservable inputs (Level 3) Financial Assets Measured at Fair Value (HK$ thousand) | Item | Fair Value as of June 30, 2025 | Level 1 | Level 2 | Level 3 | | :--- | :--- | :--- | :--- | :--- | | Unlisted equity securities | 395 | — | — | 395 | | Listed equity securities | 648 | 648 | — | — | | Total | 1,043 | 648 | — | 395 | - The fair value of unlisted equity securities is estimated as the present value of future cash flows, with significant unobservable inputs including a 15% discount rate, selling prices, sales volumes, and expected free cash flows of the investee companies[120] - The carrying amounts of the Group's financial instruments measured at amortized cost did not differ significantly from their respective fair values as of June 30, 2025, and December 31, 2024[122] Significant Related Party Transactions and Contingent Liabilities This section lists the Group's significant transactions with various related parties, including DP World Group, EV Cargo Group, and associates, primarily involving freight forwarding service income and expenses, while contingent liabilities mainly consist of financial guarantees provided by the company for subsidiary bank facilities Significant Related Party Transactions (Six Months Ended June 30, 2025) | Related Party | Transaction Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | :--- | | DP World Group | Income from freight forwarding services received | 40,935 | — | | DP World Group | Freight forwarding service fees paid | 164,298 | — | | DP World Group | Loans | 20,223 | — | | EV Cargo Group | Income from freight forwarding services received | 516 | 415 | | EV Cargo Group | Freight forwarding service fees paid | 3,009 | 2,342 | | Associates | Income from freight forwarding services received | 2,099 | 2,655 | | Associates | Freight forwarding service fees paid | 1,831 | 7,990 | - The DP World Group comprises DP World Limited and its subsidiaries and associates (excluding the Group), and as of June 30, 2025, amounts payable to the DP World Group included a loan of HK$20,223 thousand provided to the Group[123][126] - Contingent liabilities represent financial guarantees provided by the company to banks for certain bank facilities entered into by the Group's subsidiaries, with the Group's maximum liability under bank facilities amounting to HK$331,194 thousand as of June 30, 2025[124]