Chu Kong Shipping Enterprises : ANNOUNCEMENT OF INTERIM RESULTS FOR 2020

The Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Hong Kong with limited liability)

(Stock Code : 00560)

ANNOUNCEMENT OF INTERIM RESULTS FOR 2020

CHAIRMAN'S STATEMENT

On behalf of the Board of Directors of the Company (the "Board"), I hereby present the interim results of Chu Kong Shipping Enterprises (Group) Company Limited (the "Company") and its subsidiaries (the "Group") for the six months ended 30th June 2020 to the shareholders for their review.

REVIEW

In the first half of 2020, the COVID-19 epidemic caused prolonged stagnation in most industries and businesses, making a significant impact on the overall performance of the Group. Since the end of January 2020, the government has progressively closed the Guangdong-Hong Kong and Hong Kong-Macaocross-border waterway passenger terminals temporarily, resulting in a challenging operating environment for the Group's cross-border passenger transportation and related ancillary businesses. The terminal logistics business of the Group was also hit hard due to the decline in the import and export volume of foreign trades in the Mainland China.

Facing unprecedented challenges, the Group was determined to overcome multiple hurdles. By leveraging on the "five platforms", namely cross-border passenger transportation, Hong Kong local transportation, terminal logistics, the "Belt and Road" investment and capital operation, and by making concerted efforts to exploit the "five growth drivers", namely the Greater Bay Area airports, the Hong Kong-Zhuhai-Macao Bridge, development of Nansha, cross-bordere-commerce and overseas investment, the Group succeeded in maintaining the stability of terminal navigation logistics business in adversity and achieved a critical breakthrough in the local transportation business in Hong Kong.

- 1 -

Outcomes of the transformation and upgrading of the terminal logistics business started to unveil, and the diversification strategy has effectively reduced impacts brought by the epidemic and the Sino-US trade friction. Benefit from proactive progressions of diversified businesses such as domestic container services, trailer transportation, break bulk cargoes handling and transportation, and supply of construction materials since 2019, the terminal logistics business of the Group has maintained business stability under the severe market environment. Among them, both break bulk cargoes transportation volume and handling volume increased by more than 70.0%.

The Group searched for opportunities in crises. Leverage on its fine domestic and international logistics networks, the Group developed a business on the logistics of anti- epidemic supplies. While contributing to the global combat against the epidemic, the new business also created additional profits for the Group. In particular, Chu Kong Transhipment & Logistics Company Limited ("CKTL"), a subsidiary of the Group, successfully undertook the Hong Kong quarantine site transportation project, providing complete logistics and transportation solutions from Malaysia to Hong Kong for the quarantine site and supporting facilities, which was highly recognised by clients. A number of cargo terminals under the Group continued to open green channels for the transshipment of important epidemic-prevention and critical daily supplies, effectively alleviating the difficulties caused by international logistics and transportation routes disruptions due to the epidemic.

Based on advantages of the logistics networks, the Group continued to expand businesses relevant to the Hong Kong International Airport and advance the Greater Bay Area airports strategy in an orderly manner. In February 2020, the Regulated Air Cargo Screening Facility ("RACSF") and the air cargo warehouse at the Tuen Mun Godown Wharf were renovated and officially put into use, becoming one of the air cargo inspection bases authorised by the Civil Aviation Department of Hong Kong. Civet Port and Doumen Port have successively launched sand transportation businesses to transport sand for the third runway reclamation project of the Hong Kong International Airport.

The Group's local transportation business in Hong Kong made a critical breakthrough. The Group acquired 60% equity interests in New World First Ferry Services Limited ("First Ferry") in May 2020, laying a solid foundation for building a local water transportation platform in Hong Kong. After the completion of the acquisition, the business of First Ferry remained relatively stable, creating sound economic benefits for the Group.

While successfully pushing forward several strategic missions, the Group conscientiously carried out epidemic prevention and control work, strictly controlled costs and expenses, and actively applied for government subsidies to relieve operating pressure.

- 2 -

OUTLOOK

In the second half of the year, the COVID-19 epidemic shows no sign of easing, and it will continue to exert tremendous pressure on businesses of the Group. In response to changes in the operating environment, the Group will focus on key strategies such as Hong Kong local transportation, Greater Bay Area airports, the "Belt and Road", and terminal logistics, strengthen business innovations, tide over the crisis, and achieve sustainable developments.

Firstly, the Group will further expand the local ferry business in Hong Kong. The Group will perfect the operational integration works after the acquisition of First Ferry, prepare well for new route biddings, and actively develop the local transportation business in Hong Kong.

Secondly, the Group will continue to expedite the Greater Bay Area airports strategy. In terms of storage logistics, the Group will make use of the advantages of the air cargo warehouse in Tuen Mun and vigorously develop the air freight logistics business. In terms of passenger transportation, the Group will push forward the launch of routes from downtown Hong Kong to Shenzhen Airport, and routes from Guangzhou Huangpu and Pazhou to the Hong Kong International Airport.

Thirdly, the Group will upgrade the terminal logistics business. With CKTL transforms into a hub connecting cargo terminals of the Group, the Group will build an integrated terminal logistics service platform. The Group will continue to strengthen developments of businesses such as cross-bordere-commerce, cold chain distribution, integrated logistics, engineering and project logistics, cargo palletisation and so on to achieve high-quality development.

Fourthly, the Group will accelerate the deployment of businesses in countries along the "Belt and Road". The Group will establish a "Belt and Road" investment platform in Singapore, actively acquire or participate in storage logistics projects over there, and further expand the logistics business network and freight forwarding sites in Southeast Asia.

Fifthly, the Group will increase the investment in infrastructure and endeavour to complete the new warehouse in Tuen Mun as soon as possible, laying a foundation for providing logistics services to the Hong Kong International Airport.

Sixthly, The Group will also increase the intensity of external acquisitions, in order to enlarge the business scale and asset size of the core business of the Group.

- 3 -

RESPONSE TO COVID-19 EPIDEMIC

Following the guidelines on epidemic prevention and anti-epidemic issued by the government of People's Republic of China and the government of the Hong Kong Special Administrative Region, the Group quickly took epidemic prevention measures to protect customers and staff while maintaining business continuity under the COVID-19 outbreak. The Group took multiple measures to minimise the risk of infection, including flexible working hours, split-team operations, work-from-home arrangements and procurement of sanitary items and protective equipment. These measures have been effective, with no confirmed cases of infection among the Group's staff.

APPRECIATION

On behalf of the Board, I would like to take this opportunity to express my heartfelt thanks to all of our investors and partners who have shown tremendous supports to the Group, as well as to our management and staff who have worked hard to strive toward better results for the Group. We are "Committed to The Guangdong-HongKong-Macao Area, Setting Sail for The New Silk Road" as we strive to create value for shareholders, and make further contributions toward the prosperity of Guangdong, Hong Kong and Macao.

Huang Liezhang

Chairman

Hong Kong, 26th August 2020

- 4 -

UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE SIX MONTHS ENDED 30TH JUNE 2020

		Six months ended 30th June
	Note	2020	2019
		HK$'000	HK$'000
Revenue	4	872,690	1,088,691
Cost of sale/services rendered		(796,379)	(949,195)
		─────────	─────────
Gross profit		76,311	139,496
Other income		77,137	42,264
Other (loss)/gains - net	8	(6,138)	56,614
General and administrative expenses		(119,568)	(132,343)
		─────────	─────────
Operating profit	7	27,742	106,031
Finance income		13,322	10,974
Finance cost		(5,849)	(6,534)
Share of profits less losses of:
- Joint ventures		(5,242)	13,461
- Associates		(2,995)	6,360
		─────────	─────────
Profit before income tax		26,978	130,292
Income tax expense	9	(6,804)	(12,189)
		─────────	─────────
Profit for the period		20,174	118,103
		═════════	═════════
Attributable to:
Equity holders of the Company		17,780	116,373
Non-controlling interests		2,394	1,730
		─────────	─────────
Profit for the period		20,174	118,103
Earnings per share (HK cents)	11	═════════	═════════
Basic		1.59	10.38
		═════════	═════════
Diluted		1.59	10.38
		═════════	═════════

- 5 -

UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30TH JUNE 2020

	Six months ended 30th June
	2020	2019
	HK$'000	HK$'000
Profit for the period	20,174	118,103
	───────	───────
Other comprehensive income for the period:
Items that will not be reclassified to profit or loss:
Unlisted equity security at fair value through other
comprehensive income - change in fair value	(65)	-
	───────	───────
	(65)	-
Items that have been reclassified or may be reclassified	-------------	-------------
subsequently to profit or loss
Currency translation differences:
- Subsidiaries	(28,573)	(4,787)
- Joint ventures and associates	(7,461)	(1,607)
Cash flow hedges:
Net movement in hedging reserve, net with HK$1,768,000
tax effect	8,940	-
Other comprehensive income for the period,	───────	───────
net of tax effect	(27,159)	(6,394)
	-------------	-------------
Total comprehensive income for the period	(6,985)	111,709
	═══════	═══════
Attributable to:
Equity holders of the Company	(10,378)	110,439
Non-controlling interests	3,393	1,270
	───────	───────
Total comprehensive income for the period	(6,985)	111,709
	═══════	═══════
- 6 -

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE 2020

		As at	As at
	Note	30th June	31st December
	2020	2019
		HK$'000	HK$'000
ASSETS
Non-current assets
Property, plant and equipment		1,858,008	1,733,898
Investment properties		32,690	33,593
Land use rights		372,371	385,927
Intangible assets		218,072	43,612
Investments in joint ventures		374,693	387,006
Investments in associates		109,566	114,198
Other financial asset		1,743	-
Deferred income tax assets		4,072	4,494
		────────	────────
		2,971,215	2,702,728
Current assets		--------------	--------------
Inventories		31,667	1,814
Trade and other receivables	5	451,530	386,211
Loans to a joint venture		4,379	4,465
Structured bank deposits		409,299	409,441
Cash and cash equivalents		721,826	869,271
		────────	────────
		1,618,701	1,671,202
		--------------	--------------
Total assets		4,589,916	4,373,930
EQUITY		════════	════════
Share capital		1,415,118	1,415,118
Reserves		1,690,909	1,734,922
		───────	───────
		3,106,027	3,150,040
Non-controlling interests		338,390	297,047
		───────	───────
Total equity		3,444,417	3,447,087
		---------------	---------------

- 7 -

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 30TH JUNE 2020

		As at	As at
	Note	30th June	31st December
	2020	2019
		HK$'000	HK$'000
LIABILITIES
Non-current liabilities
Deferred income tax liabilities		93,316	82,739
Deferred income		4,764	6,438
Lease liabilities		27,505	32,171
Long term borrowings		192,310	140,696
		────────	────────
		317,895	262,044
Current liabilities		--------------	--------------
Trade payables, accruals and other payables	6	522,659	494,333
Amounts due to the non-controlling interests		89,756	77,939
Derivative financial liabilities		14,008	-
Income tax payables		20,718	20,438
Lease liabilities		20,364	18,193
Short-term borrowings		150,000	50,000
Current portion of long term borrowings		10,099	3,896
		────────	────────
		827,604	664,799
		--------------	--------------
Total liabilities		1,145,499	926,843
		--------------	--------------
Total equity and liabilities		4,589,916	4,373,930
		════════	════════
Net current assets		791,097	1,006,403
		════════	════════
Total assets less current liabilities		3,762,312	3,709,131
		════════	════════

- 8 -

NOTES

1. Statement of compliance
   The financial information relating to the financial year ended 31st December 2019 that is included in the interim results announcement as being previously reported information does not constitute the Company's statutory annual consolidated financial statements for that financial year but is derived from those financial statements.
   The Company has delivered the financial statements for the year ended 31st December 2019 to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Hong Kong Companies Ordinance (Cap. 622).
   The Company's auditor has reported on those financial statements. The auditor's report was unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its report; and did not contain a statement under sections 406(2), 407(2) or (3) of the Hong Kong Companies Ordinance (Cap. 622).
   The figures in respect of the Group's consolidated statement of financial position, consolidated statement of profit or loss, consolidated statement of comprehensive income and the related notes thereto for the period ended 30th June 2020 as set out in the preliminary announcement have been compared by the Group's auditor, KPMG, to the amounts set out in the Group's consolidated financial statements for the period. The work performed by KPMG in this respect did not constitute an assurance engagement in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements or Hong Kong Standards on Assurance Engagements issued by the HKICPA and consequently no assurance has been expressed by KPMG on the preliminary announcement.
2. Basis of preparation
   The interim financial report of the Company has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with Hong Kong Accounting Standard ("HKAS") 34, Interim financial reporting, issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"). It was authorised for issue on 26th August 2020.
   The interim financial report has been prepared in accordance with the same accounting policies adopted in the 2019 annual financial statements, except for the accounting policy changes that are expected to be reflected in the 2020 annual financial statements.
3. • 9 -

3. Accounting policies

The HKICPA has issued a number of amendments to HKFRSs that are first effective for the current accounting period of the Group.

None of the developments has had a material effect on how the Group's results and financial position for the current or prior periods have been prepared or presented. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.

4. Segment information

The chief operating decision-maker has been identified as the executive directors of the Company, which reviews the Group's internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports.

The executive directors of the Company consider the business from service perspectives and assess the performance of the Group and its joint ventures and associates which are organised into five main businesses:

1. Cargo transportation - Shipping agency, river trade cargo direct shipment and transshipment and container hauling and trucking
2. Cargo handling and storage - Wharf cargo and container handling, cargo consolidation and godown storage
3. Passenger transportation - Passenger transportation agency services, travel agency operation and passenger carrier service
4. Fuel supply - Oil trading and marine bunkering service
5. Corporate and other businesses - Investment holding, property management service and other businesses

The executive directors of the Company assess the performance of the operating segments based on their segment profit before income tax expense, which is measured in a manner consistent with that in the interim financial information.

Sales between segments are carried out on terms equivalent to those that prevail with third parties. The revenue from external parties reported to the executive directors of the Company is measured in a manner consistent with that in the unaudited condensed consolidated income statement.

- 10 -

4. Segment information (Continued)

	Cargo			Corporate
Cargo	handling	Passenger		and other
transportation	and storage	transportation	Fuel supply	businesses	Total
HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000

Six months ended 30th June 2020 Total revenue

Inter-segment revenue

Revenue (from external customers)

Segment profit before income tax expense Income tax expense

Segment profit after income tax expense

591,622	200,910	50,119	79,840	74,156	996,647
(45,635)	(65,950)	-	(3,219)	(9,153)	(123,957)
───────	───────	──────	──────	──────	────────
545,987	134,960	50,119	76,621	65,003	872,690
═══════	═══════	══════	══════	══════	═══════
22,566	12,091	(16,594)	(1,128)	10,043	26,978
(3,871)	(3,011)	2,127	-	(2,049)	(6,804)
───────	───────	──────	──────	──────	───────
18,695	9,080	(14,467)	(1,128)	7,994	20,174
═══════	═══════	══════	══════	══════	═══════

Segment profit before income tax expense includes:

Finance income Finance cost

Depreciation and amortisation Share of profits less losses of:

Joint ventures Associates

Government grants and subsidies

224	353	253	89	12,403	13,322
(234)	(4,058)	(753)	(20)	(784)	(5,849)
(3,082)	(58,451)	(5,922)	(1,510)	(3,971)	(72,936)
3,769	3,099	(12,110)	-	-	(5,242)
-	2,593	(5,588)	-	-	(2,995)
16,126	1,558	33,473	621	-	51,778
═══════	═══════	══════	══════	══════	═══════

- 11 -

4. Segment information (Continued)

		Cargo			Corporate
	Cargo	handling	Passenger		and other
	transportation	and storage	transportation	Fuel supply	businesses	Total
	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000
Six months ended 30th June 2019
Total revenue	680,487	209,660	67,103	275,080	15,375	1,247,705
Inter-segment revenue	(49,594)	(75,212)	-	(27,658)	(6,550)	(159,014)
Revenue (from external customers)	───────	───────	──────	──────	──────	────────
630,893	134,448	67,103	247,422	8,825	1,088,691
	═══════	═══════	══════	══════	══════	════════
Segment profit before income tax expense	10,079	25,098	32,120	8,453	54,542	130,292
Income tax expense	(2,902)	(3,404)	(2,422)	(1,210)	(2,251)	(12,189)
Segment profit after income tax expense	───────	───────	──────	──────	──────	───────
7,177	21,694	29,698	7,243	52,291	118,103
Segment profit before income tax	═══════	═══════	══════	══════	══════	═══════
expense includes:
Finance income	898	386	399	197	9,094	10,974
Finance cost	(539)	(4,301)	(222)	(18)	(1,454)	(6,534)
Depreciation and amortisation	(6,997)	(52,143)	(1,396)	(1,422)	(2,785)	(64,743)
Share of profits less losses of:
Joint ventures	984	2,070	10,407	-	-	13,461
Associates	-	2,110	4,250	-	-	6,360
Gain on disposal of owner-occupied
property	-	-	-	-	55,751	55,751
Government grants and subsidies	12,305	8,019	-	-	-	20,324
	═══════	═══════	══════	══════	══════	═══════
		- 12 -

5. Trade and other receivables

The normal credit periods granted by the Group to its customers on open accounts range from seven days to three months from the date of invoice. The aging analysis of trade receivables by invoice date is as follows:

	As at	As at
	30th June	31st December
	2020	2019
	HK$'000	HK$'000
Within 3 months	253,662	230,659
4 to 6 months	25,722	13,972
7 to 12 months	35,743	5,292
Over 12 months	4,084	4,596
	───────	───────
	319,211	254,519
Less: loss allowance	(4,189)	(4,952)
	───────	───────
	315,022	249,567
	═══════	═══════

6. Trade payables, accruals and other payables

The aging analysis of trade payables by invoice date is as follows:

	As at	As at
	30th June	31st December
	2020	2019
	HK$'000	HK$'000
Within 3 months	264,307	261,082
4 to 6 months	10,515	56
7 to 12 months	357	306
Over 12 months	1,366	1,650
	───────	──────
	276,545	263,094
	════════	════════

- 13 -

7. Operating profit
Operating profit is stated after charging the following:
	Six months ended 30th June
	2020	2019
	HK$'000	HK$'000
Amortisation of land use rights	5,622	5,602
Depreciation of property, plant and equipment	54,715	47,901
Depreciation of investment properties	347	29
Depreciation of right-of-use assets	12,252	11,211
Lease payments for short-term leases
- vessels and barges	72,947	67,951
- buildings	4,012	3,177
- property that generated rental income	245	-
Staff costs (including directors' emoluments)	203,712	180,233
	════════	════════

8. Other (loss)/gains - net
	Six months ended 30th June
	2020	2019
	HK$'000	HK$'000
Exchange (loss)/gains, net	(4,655)	498
(Loss)/gain on disposals of property, plant and
equipment (note)	(1,528)	56,056
Reversal of loss allowance of trade receivables	45	60
	────────	────────
	(6,138)	56,614
	════════	════════

Note:

The gain on disposal of property, plant and equipment in 2019 mainly included the disposal of 23/F of Chu Kong Shipping Tower, an owner-occupied property with a carrying amount of HK$4,649,000 at the date of disposal, at a consideration of HK$60,400,000 to Chu Kong Shipping Enterprises (Holdings) Company Limited ("CKSE"), the immediate holding company. The gain on disposal was approximately HK$55,751,000.

- 14 -

9. Income tax expense

Hong Kong profits tax has been provided for at the rate of 16.5% (2019: 16.5%) on the estimated assessable profit for the period.

PRC corporate income tax has been calculated on the estimated assessable profit for the period at the income tax rate of the PRC entities of 25% (2019: 25%).

Macao profits tax has been provided at 12% (2019: 12%) on the estimated assessable profit for the period.

	Six months ended 30th June
	2020	2019
	HK$'000	HK$'000
Current income tax
- Hong Kong profits tax	2,937	8,415
- PRC corporate income tax	4,447	3,339
- Macao profits tax	8	1,034
Deferred income tax expense	(588)	(599)
	────────	────────
	6,804	12,189
	════════	════════

10. Dividends

Due to severe impacts brought by the COVID-19 epidemic, the profit attributable to equity holders of the Company in the first half of the year was only marginal. Whilst, capital is reserved to address subsequent epidemic challenges and potential merger and acquisition opportunities, the board of directors decided not to declare an interim dividend for the year ending 31st December 2020 (2019 interim dividend: HK3 cents). Declaration on the final dividend will be subject to an integrated consideration.

- 15 -

11. Earnings per share

Basic

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.

	2020	2019
Profit attributable to equity holders of the
Company (HK$'000)	17,780	116,373
	═══════	═══════
Weighted average number of ordinary shares in
issue ('000)	1,121,167	1,121,167
	═════════	═════════
Basic earnings per share (HK cents)	1.59	10.38
	═══════	═══════

The amount of dilutive earnings per share is the same as basic earnings per share for the six months ended 30 June 2020 and 2019 as there were no dilutive potential ordinary shares in issue.

- 16 -

12. Acquisition of a subsidiary

The Group acquired 60% equity interest of New World First Ferry Services Limited on 18 May 2020, a ferry services and charter hire of vessels services company in Hong Kong, at a cash consideration of HK$232,800,000, subject to certain adjustments as defined in the acquisition agreement. The objective of the acquisition is to further expand the Group's local ferry business in Hong Kong.

Goodwill arising from the acquisition has been recognised as follows:

	HK$'000
Total consideration transferred	232,800
Less: net identifiable assets acquired	(94,875)
	────────
	137,925
Share of non-controlling interests	37,950
	────────
Goodwill	175,875

════════

The amounts of assets and liabilities arising from the acquisition of New World First Ferry Services Limited as at 30th June 2020 and the related consideration are currently determined provisionally. At the date of this announcement, the necessary valuations and other calculations for the net assets acquired and liabilities assumed had not been finalised and therefore have been provisionally determined based on the latest information available to the management. Any adjustments to these provisional values upon finalisation will be recognised within 12 months of the acquisition date. The adjustments will be calculated as if the fair values had been recognised on the acquisition date. Goodwill will also be adjusted to the amount that would have been recognised if the fair value had been used at the acquisition date

- 17 -

MANAGEMENT DISCUSSION AND ANALYSIS

REVIEW OF OPERATIONS

For the period ended 30th June 2020, the Group recorded a consolidated revenue of HK$872,690,000, representing a decrease of 19.8% over the same period last year. Profit attributable to the shareholders of the Company amounted to HK$17,780,000, representing a decrease of 84.7% over the same period last year.

In the first half of 2020, affected by the COVID-19 epidemic and other unfavourable factors, the global economy was facing material crises and challenges. International trades have dropped noticeably while travels to Hong Kong have mostly halted. Both the passenger and freight transportation businesses operated by the Group were under massive pressures. In response to the policy of "Customs Closure for Epidemic Prevention", the high-speed waterway passenger transportation business has suspended operations of routes between Guangdong and Hong Kong and between Hong Kong and Macao since the end of January. The passenger transportation volume experienced a tremendous decline. Compared with the same period last year, the Group's terminal navigation logistics business delivered a steady performance. In contrast, the high-speed waterway passenger transportation business, affected by the unexpected epidemic, substantially underperformed, causing the Group's performance in the first half of the year to fall far below expectations. In this exceptionally difficult period, the Group looked for opportunities in crises and overcame difficulties. With epidemic prevention and control work in place, the Group leveraged on the Guangdong-Hong Kong- Macao Greater Bay Area to vigorously grow its diversified and expanding businesses. While deepening market localisations, the Group actively formulated its "Belt and Road" game plan. The Group continued to push forward its transformation and upgrading strategy while stressing on cost reductions and efficiency enhancements, and took multiple measures to seek developments in the extremely unfavourable market environment.

Regarding the freight business, the Group continued to leverage on advantages of terminals' network and diversified businesses to refine upstream to downstream industry chain coverage, stabilised foreign trade and strove for breakthroughs, strengthened domestic trade and promoted growths, and realised synergistic development on both domestic and foreign trade businesses. By actively expanding sand supply business, epidemic-prevention supplies transportation and other businesses, the Group effectively extended its service chain, and minimised impacts brought to the terminal navigation logistics business by the epidemic to the fullest extent. During the period, the container transportation volume recorded 637,000 TEU, representing a year-on-year decrease of 6.7%; and the break bulk cargoes transportation volume recorded 636,000 tons, representing a year-on-year increase of 70.5%. As for the cargo handling business, the container handling volume recorded 527,000 TEU, representing a year-on-year decrease of 1.3%; the break bulk cargoes handling volume recorded 5,635,000 tons, representing a year-on-year increase of 82.4%; and the volume of container hauling and trucking amounted to 104,000 TEU, remaining static year-on-year.

- 18 -

REVIEW OF OPERATIONS (Continued)

Regarding the passenger transportation business, in order to address the need for epidemic prevention and control, the Group fully tied in with epidemic prevention policies, operations of the cross-border waterway passenger routes of urban areas and the airport were progressively suspended since the end of January 2020. Except for new local ferry services, other cross-border water passenger transportation demonstrated significantly declining business operation indicators. During the period, the total number of passengers for agency services recorded 408,000, representing a year-on-year decrease of 82.7%. The number of passengers for terminal services recorded 366,000, representing a year-on-year decrease of 83.7%.

I. TERMINAL NAVIGATION LOGISTICS BUSINESS

1. Cargo Transportation Business

Business Operation Indicators

Performance statistics of our major business operations are as follows:

	For the six months
	ended 30th June
Indicators	2020	2019	Change
Container transportation volume (TEU)	637,000	683,000	-6	.7%
Break bulk cargoes transportation volume
(revenue tons)	636,000	373,000	70	.5%
Volume of container hauling and
trucking on land (TEU)	104,000	104,000		-

Subsidiaries

In the first half of the year, though influenced by unfavourable factors of the epidemic, CKTL embraced challenges ahead. While maintaining existing business stability, it actively fostered innovative projects. The declining rate of container volume flattened, with a container transportation volume of 637,000 TEU during the period, representing a year-on-year decrease of 6.7% and the volume of container hauling and trucking on land recorded 104,000 TEU, remaining static year-on-year; the break bulk cargoes transportation volume recorded 636,000 tons, representing a year-on-year increase of 70.5%, mainly due to significantly rise in bulk cargoes transportation volume brought by sand supply projects.

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Subsidiaries (Continued)

CKTL took measures to optimise operational flow, accelerated the transformation and upgrading, promoted consolidation of resources, and deepened cooperation between cargo terminals and navigation. Focusing on "The Airport Economy" strategy, CKTL expedited the construction of Tuen Mun New Godown Wharf and pushed forward infrastructure construction as scheduled while maintaining the quality and the quantity; developed the construction logistics project, the sand transportation projects for the third runway of the Hong Kong International Airport implemented smoothly; entered the domestic trade forwarding market, set up incentive schemes and cooperated with cargo terminals in the Pearl River Delta region to launch marketing campaigns for domestic trade business; promoted e-commerce business and successfully expanded the Hong Kong-Guangzhou Lianhuashan cross-border e- commerce high-speed waterway logistics business; regarded highly on the logistics of epidemic-prevention supplies, contributing to the global combat against the epidemic while creating additional profits.

Regarding the air freight business, CKTL recorded a year-on-year increase of 124.2% in air freight forwarding volume. During the period, CKTL completed the compliance assessment of the Regulated Air Cargo Screening Facility and put it into operation. Currently, a number of mature customers are introduced to facilitate the maximisation of benefits of the X-ray inspection business.

2. Cargo Handling and Storage Business

Business Operation Indicators

Performance statistics of our major business operations are as follows:

	For the six months
	ended 30th June
Indicators	2020	2019	Change
Container handling volume (TEU)	527,000	534,000	-1	.3%
Volume of break bulk cargoes handled
(revenue tons)	5,635,000	3,089,000	82	.4%

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Subsidiaries

During the period, despite impacts of unfavourable factors such as the COVID-19 epidemic and China's tightened controls on transportation overloads, each subsidiary of the Group actively explored various emerging businesses and tapped market potential. Declines in container volume at multiple terminals of the Group flattened.

The overall container handling volume in Zhaoqing region recorded 70,000 TEU, representing a year-on-year decrease of 25.3%; the overall break bulk cargoes handling volume recorded 5,160,000 tons, representing a year-on-year increase of 101.2%. During the period, Zhaoqing New Port vigorously developed domestic and foreign trade break bulk cargoes businesses, such as transportation of bulk construction materials, steel, sand and so on. The break bulk cargoes handling volume increased by 247.1% year-on-year. It targets to turn losses into profits by the end of the year, and to build the initial phase of Xijiang River Hub. Due to the severity of the overseas epidemic situation, major sourcing countries of imported stone materials in Europe locked down, and the imported stone materials handling volume at Gaoyao Port fell sharply. On the other hand, through developments of three new sources of goods, namely sand, frozen food and ore, the container and break bulk cargoes handling volumes at Gaoyao Port during the period recorded reduced declines. In addition to differentiated terminal operations, Gaoyao Port also promoted the construction of a "Smart Customs" system to achieve simultaneous operations of domestic and foreign trade container businesses. Kangzhou Port continued to expand the local sand break bulk cargoes transportation business, focusing on growing business in Guangxi.

The overall container handling volume at Gaoming Port of Foshan region recorded 150,000 TEU, representing a year-on-year decrease of 4.7%; the break bulk cargoes handling volume recorded 42,000 tons, representing a year-on-year increase of 116.8%. Gaoming Port intensified exploration of existing customers, and undertook more sources of domestic trade including customers like Haitian soy sauce; meanwhile, it has deepened its cooperation with ZTO Express on e-commerce logistics projects by establishing a joint venture to jointly operate cross-border e- commerce logistics services, forming a new and replicable business cooperation model between terminal and express delivery companies for promoting.

During the period, container handling volume at Qingyuan Port recorded 38,000 TEU, representing a year-on-year increase of 313.3%, of which, new domestic trade container handling volume recorded 20,000 TEU, and the foreign trade container handling volume doubled year-on-year. Qingyuan Port has introduced more major liners to take advantage of backhauls of imported containers and to boost the volume of export containers; meanwhile, business processes were optimised and successfully attracted new types of goods to be imported. Both domestic and foreign trade businesses experienced counter-trend growths.

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Subsidiaries (Continued)

The overall container handling volume in Zhuhai region recorded 118,000 TEU, representing a year-on-year decrease of 2.4%; the overall break bulk cargoes handling volume recorded 136,000 tons, representing a year-on-year increase of 14.7%. During the period, the container handling volume at Civet Port recorded 93,000 TEU, representing a year-on-year increase of 3.4%; the break bulk cargoes handling volume increased by 10.4% over the same period last year. Civet Port launched cold chain inspection business and created a new platform for cold chain imports and exports; deployed new cross-bordere-commerce businesses to pave way for diversification of warehousing and storage services; explored new business forms for Zhuhai-Macao interoperability and entered the high-end supply chain logistics market. The container handling volume at Doumen Port recorded 25,000 TEU, representing a year-on-year decrease of 19.2%; the break bulk cargoes handling volume increased significantly by 22.2% year-on-year. Doumen Port seized new development opportunities and promoted professional development. It took building materials featured terminal as the development position, opened up the export business of sand and cement to Hong Kong and Macao, securing a steady increase of sand lighterage business. Meanwhile, Doumen Port also expanded the "All-in-one Bridge Transportation" business and launched integrated logistics services like break bulk consolidation transportation.

Zhongshan Huangpu Port in Zhongshan region specialised in serving electrical appliances and small household appliances clusters in the region. It opened up imports of goods like pumice, float glass, copper cathode and rubber particles, and focused on developing household appliances and steel logistics businesses. During the period, container handling volume at Zhongshan Huangpu Port recorded 17,000 TEU, representing a year-on-year increase of 10.4%. Meanwhile, it added domestic trade import coil steel and export scrap iron break bulk cargoes businesses. Domestic trade break bulk cargoes handling volume recorded 18,000 tons. Going forward, Zhongshan Huangpu Port will continue to develop domestic container business and achieve a balanced development of domestic and foreign trade businesses.

The container handling volume in Hong Kong region recorded 134,000 TEU, representing a year-on-year decrease of 2.4%. During the period, CKTL extended the industrial chain from traditional business to also include bonded warehouse supply chain projects; completed the establishment of Vietnam outlets and steadily progressed on the set-up of the Southeast Asian market network; continued to strengthen Tuen Mun New Godown Wharf and Hong Kong International Airport business integration, positioning it as the central warehouse of the Group's new business model, leading the dynamics between multiple encircling satellite warehouses at terminals in the Pearl River Delta to form positive interactions.

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Joint Ventures and Associates

Terminals in Jiangmen region include Guangdong Sanbu Passenger and Freight Transportation Co., Ltd. and Heshan County Hekong Associated Forwarding Co., Ltd. Jiangmen region recorded a total container handling volume of 127,000 TEU, remaining static year-on-year. During the period, the container handling volume at Sanbu Port recorded 77,000 TEU, representing a year-on-year decrease of 16.2%. Sanbu Port continued to strengthen its business development, introduced imported grain sources for foreign trades and increased quartz sand sources for domestic trades to cope with impacts brought by the epidemic. During the period, the container handling volume at Heshan Port recorded 51,000 TEU, representing a year-on-year increase of 43.1%. Counting on the increase in the volume of paper and rubber wood transportation, Heshan Port recorded a strong increase in foreign trade handling volume in the first half of the year, and the domestic container business also demonstrated a substantial growth.

The two terminals in Foshan region, namely Foshan Nankong Terminal Co., Ltd. and Chu Kong Cargo Terminals (Beicun) Co., Ltd. recorded a total container handling volume of 61,000 TEU, representing a year-on-year decrease of 20.5%. During the period, the container handling volume at Foshan Nankong Port recorded 43,000 TEU, representing a year-on-year decrease of 33.1%; the break bulk cargoes handling volume recorded 50,000 tons, representing a year-on-year increase of 40.1%. Imports of machinery and exports of anti-epidemic supplies led to a substantial increase in break bulk cargoes handling volume at Foshan Nankong Port, driving up profit growth. During the period, the container handling volume at Foshan Beicun Port recorded 18,000 TEU, representing a year-on-year increase of 43.4%. Foshan Beicun Port cooperated with customs to create a "green channel" for rice imports, and is committed to building a featured grain terminal. It actively introduced major liners companies and gradually turned into a distribution center for CCA shipping companies in the region. Due to expropriations of lands for wharves and buildings erected on the land at Foshan New Port, its operation was suspended. As a result, Foshan New Port Ltd. generated nil revenue during the period. All business operations of Sanshui Sangang Containers Wharf Co., Ltd. continued to be suspended under the environmental protection policies.

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1. PASSENGER TRANSPORTATION BUSINESS
   Business Operation Indicators
   Performance statistics of the major business operations are as follows:

	For the six months
	ended 30th June
	Number of Passengers
		(in thousands)
Indicators	2020	2019	Change
Total number of passengers for
agency services	408	2,358	-82	.7%
Total number of passengers for
terminal services	366	2,247	-83	.7%
The number of passengers for local
ferry transportation (Note)	2,056	2,229	-7	.8%

Note: The number of passengers for local ferry transportation was calculated from the consolidation of the acquisition of First Ferry in May of this year, and the calculation of the passenger volume in 2019 also began in May.

Subsidiaries

Affected by the COVID-19 epidemic in the first half of the year, the Group's Guangdong- Hong Kong and Hong Kong-Macaocross-border waterway passenger terminals have been temporarily closed since the end of January, and the passenger transportation business has stalled. During the period, the total number of passengers for agency services of Chu Kong Passenger Transport Company Limited ("CKPT") was 408,000, representing a year- on-year decrease of 82.7%; the number of passengers for terminal services was 366,000, representing a year-on-year decrease of 83.7%.

Regarding urban routes, during the period, in response to the Hong Kong government's announced requirements for epidemic control, the China Ferry Terminal and the Hong Kong Macau Ferry Terminal were closed at the end of January and early February this year respectively. The urban routes have been suspended since then, and the passenger transportation business operations are facing severe challenges. During the period, the total number of passengers for urban routes transportation was 146,000, representing a year-on-year decrease of 89.6%.

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Subsidiaries (Continued)

Regarding airport routes, due to the need for epidemic prevention and control, all flights to and from the Skypier at the Hong Kong International Airport and ports at the Pearl River Delta were canceled since March this year. During the period, the passenger volume recorded 262,000, representing a year-on-year decrease of 72.6%. Except for the 47.4% increase of the Nansha Airport route, benefit from its integrated operation, the passenger volumes of all other airport routes have dropped significantly. Although the airport routes suffered a hard hit in the first half of the year, the Group is still actively preparing for openings of new routes between Hong Kong Airport and Shenzhen Airport. It is expected, with the hope of easing the epidemic situation, the passenger volume of air-sea passenger union transportation will usher in a rapid rebound.

Regarding local ferry services, the Group formally acquired 60% equity interest in First Ferry from NWS Holdings Co., Ltd. in May this year. During the period, the business of the First Ferry was relatively stable. The Group actively pushes forward its follow-up operations and biddings for operating licenses. With First Ferry joining the Group, the Group adds in a local ferry business, which is expected to bring in long-term stable returns to the Group. Since the completion of the acquisition in May this year, the local ferry business has recorded a number of passengers of 2,056,000, representing a year-on- year decrease of 7.8%.

Joint Ventures and Associates

In the first half of the year, all joint ventures and associated companies were affected by the epidemic, and recorded various declines in numbers of passengers. During the period, the number of passengers at SkyPier (operated by Hong Kong International Airport Ferry Terminal Services Limited) recorded 271,000, representing a year-on-year decrease of 74.6%. Zhongshan - Hong Kong Passenger Shipping Co-op Co. Ltd. and Foshan Shunde Shungang Passenger Transportation Co-op Co., Ltd. were pioneers in operation suspension, their numbers of passenger dropped by 85.3% and 90.7% year-on-year respectively.

Also affected by the epidemic, the shuttle bus business for the Hong Kong-Zhuhai-Macao Bridge jointly operated by Hong Kong-Zhuhai-Macao Bridge Shuttle Bus Co., Ltd., an associate of the Group, recorded a number of passenger of 1,168,000 during the period, representing a year-on-year decrease of 86.3%.

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III. FUEL SUPPLY BUSINESS

As to the fuel supply business, being an auxiliary business to passenger and freight transportation businesses, recorded a decline in the diesel sales volume of Sun Kong Petroleum Company Limited ("Sun Kong Petroleum"), as a result of the decline in the passenger and freight business caused by the epidemic. During the period, Sun Kong Petroleum recorded a sales volume of 17,000 tons for diesel, representing a year-on-year decrease of 67.9%. The sales volume was 382,000 litres of engine oil, representing a year-on-year increase of 30.4%. Sun Kong Petroleum actively responded to the "Belt and Road" initiative and extended its industrial chain. It cooperated with Ming Wah (Singapore) Agency Pte. Ltd., a subsidiary of China Merchants, and obtained the exclusive agency right for the Green Fuel Max fuel treatment agent in Hong Kong and Macao. In addition, Sun Kong Petroleum also successfully won the bid of lubricant transportation, storage and distribution for Sinopec.

IV. CORPORATE AND OTHER BUSINESSES

As to the corporate and other businesses, Cotai Chu Kong Shipping Management Services (Macau) Company Limited ("Cotai Macau"), whose main business is the maintenance and repair of property facilities, recorded a profit plummet during the period. It is mainly due to the reduction in facilities maintenance service projects sourced from the Municipal Affairs Bureau and the Inner Harbour Ferry Terminal. During the period, Cotai Macau reduced operating costs while keeping its business, actively improved service efficiency and strove to develop long-term stable emerging projects. It gained itself an important role in the Group's strategic plan in Macao.

During the period, businesses of other subsidiaries, joint ventures and associates of the Group progressed well.

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LIQUIDITY, FINANCIAL RESOURCES AND CAPITAL STRUCTURE

The capital structure of the Group was constantly monitored by the Company. The use of any capital instruments, including banking facilities, by each subsidiary was under the central coordination and arrangement of the Company.

As at 30th June 2020, the Group secured a total credit facilities of HK$1,334,000,000 and RMB265,080,000 (equivalent to approximately HK$290,212,000) (31st December 2019: HK$1,184,000,000 and RMB260,000,000 (equivalent to approximately HK$290,243,000) granted by bona fide banks.

As at 30th June 2020, the current ratio of the Group, representing current assets divided by current liabilities, was 2.0 (31st December 2019: 2.5).

As at 30th June 2020, the Group's cash and cash equivalents amounted to HK$721,826,000 (31st December 2019: HK$869,271,000), which represented 15.7% (31st December 2019: 19.9%) of the total assets.

As at 30th June 2020, the gearing ratio of the Group, representing bank borrowings divided by total equity and bank borrowings, was 9.3% (31st December 2019: 5.3%) and the debt ratio, representing total liabilities divided by total assets, was 25.0% (31st December 2019: 21.2%).

After considering the cash held by the Group and cash flows from operating activities, as well as the bank credit facilities available to the Group, it is believed that the Group has sufficient capital to fund its future operations and for business expansion and general development purposes.

During the period, except fuel price swap contracts are used to hedge against fuel price rises for the local ferry transportation business, the Group did not use any other financial instruments for hedging purpose.

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BANK LOANS AND PLEDGE OF ASSETS
Bank Loans	As at	As at
	30th June 2020	31st December 2019
Banks located in Hong Kong (Note 1)
- Hong Kong Dollar	150,000,000	50,000,000
Banks located in China (Note 2)
- Renminbi	184,880,000	129,526,000
	(equivalent to	(equivalent to
	approximately	approximately
	HK$202,409,000)	HK$144,592,000)

Note:

1. The loans from banks located in Hong Kong as at 30th June 2020 was bearing floating interest rate and unsecured. The relevant terms of which are identical with those set out in 2019 Annual Report.

2. The loans from banks located in China on 30th June 2020 borne floating interest rate and was secured by the land use right of Zhongshan Huangpu Port and certain properties and the land use right of Civet Port. The relevant terms of which are identical with those set out in 2019 Annual Report.

CURRENCY STRUCTURE

As at 30th June 2020, the Group deposited its cash and cash equivalents with several reputable banks, of which the majority were denominated in Hong Kong dollar and Renminbi, with a few denominated in United States dollar ("USD"), Macao pataca and Euro.

MATERIAL ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

On 4th May 2020, the Company, New World First Holdings Limited, First Ferry and NWS Holdings Limited entered into a sale and purchase agreement, pursuant to which (i) the Company acquired 60% of the entire issued shares of New World First Ferry Services Limited from New World First Holdings Limited, at a consideration of HK$232,800,000 and (ii) NWS Holdings Limited agreed to guarantee the performance of the obligations of New World First Holdings Limited under the sale and purchase agreement. The relevant acquisition was completed on 18th May 2020, and the financial results of First Ferry have been consolidated into the consolidated financial statements of the Group.

Save as disclosed in this announcement, the Group had no other material acquisition or disposal of any subsidiaries, joint ventures and associates for the six months ended 30th June 2020.

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SIGNIFICANT INVESTMENT

Save as disclosed in this announcement, there was no other significant investment held by the Group for the six months ended 30th June 2020.

CONTINGENT LIABILITIES

As at 30th June 2020, the Group had no material contingent liabilities.

EXCHANGE RISK

Currently, the ordinary operations and investments of the Group are concentrated in Guangdong Province, Hong Kong and Macao, with operating revenue and expenses mainly denominated in HKD, as well as in RMB and USD. RMB revenue received in Mainland China may be used for payment of expenses of the Group which are denominated in RMB and incurred in Mainland China. HKD or USD revenue received in Mainland China may be remitted to the Group's bank accounts in Hong Kong through proper procedures. So long as the linked exchange rate system in Hong Kong with USD is maintained in the short term, it is expected that the Group will not be subject to relatively significant exchange risk.

PURCHASE, REDEMPTION OR SALE OF THE COMPANY'S LISTED SECURITIES

No listed securities of the Company were purchased or sold by the Company or any of its subsidiaries for the period. The Company did not redeem any of its shares during the period.

ADOPTION OF MODEL CODE FOR SECURITIES TRANSACTION BY DIRECTORS

The Company has adopted a code of conduct prescribing standards and requirements no less than that required by the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") as set out in Appendix 10 to the Listing Rules as its code of conduct of Directors for conducting securities transactions. All Directors have fully complied with the required standards set out in the Model Code in relation to such transactions during the accounting period covered by 2020 interim report.

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PUBLICATION OF INTERIM REPORT

The interim report of the Company for the six months ended 30th June 2020 containing all the information required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "SEHK") (the "Listing Rules") will be published on the websites of the SEHK (www.hkexnews.hk) and the Company (www.cksd.com) in due course.

INTERIM DIVIDEND

Due to severe impacts brought by the COVID-19 epidemic, the profit attributable to equity holders of the Company in the first half of the year was only marginal. Whilst, capital is reserved to address subsequent epidemic challenges and potential merger and acquisition opportunities, the board of directors decided not to declare an interim dividend for the year ending 31st December 2020 (2019 interim dividend: HK3 cents). Declaration on the final dividend will be subject to an integrated consideration.

REVIEW BY AUDIT COMMITTEE

The Company's Audit Committee and the Company's independent auditor have reviewed the Group's unaudited consolidated interim financial information for the six months ended 30th June 2020.

Interim financial results of the Group for the six months ended 30th June 2020 have not been audited but prepared in accordance with HKAS 34 Interim Financial Reporting and reviewed by the independent external auditor, KPMG, in accordance with Hong Kong Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity.

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CORPORATE GOVERNANCE

The directors of the Company have adopted various policies to ensure compliance with the code provisions of the Corporate Governance Code (the "Code Provisions") under Appendix 14 of the Listing Rules. In the opinion of the directors, the Company complied with the Code Provisions throughout the accounting period covered by the interim report except as disclosed below.

In the future, the Company will also adopt more recommended best practices according to actual needs, so as to further enhance the level of corporate governance.

According to the Code Provisions, a service term of over nine years is one of the key factors in determining the independence of an independent non-executive director. Mr. Chan Kay- cheung, Ms. Yau Lai Man and Mr. Chow Bing Sing have served as such independent non- executive directors for over nine years. During their years of service with the Company, Mr. Chan, Ms. Yau and Mr. Chow have contributed by providing an independent viewpoint and advice to the Company in relation to its businesses, operations, future development and strategy. The Board considers that Mr. Chan, Ms. Yau and Mr. Chow have the character, integrity, ability and experience as required to continue to fulfill his/her role effectively. The Company believes that Mr. Chan, Ms. Yau and Mr. Chow can independently express opinions on matters of the Company and there is no evidence that his/her over nine years of service with the Company would have any impact on his/her independence and therefore his/her independence is confirmed. According to the Code Provisions A.4.3, if an independent non- executive director serves more than nine years, his/her further appointment should be subject to a separate resolution to be approved by shareholders. Ms. Yau retired on rotation at the annual general meeting held on 20th June 2019, and being eligible, offered herself for reelection at the said meeting. Ms. Yau had been re-appointed by separate resolution of the shareholders at the said meeting. Mr. Chan and Mr. Chow retired on rotation at the annual general meeting held on 21st May 2020, and being eligible, offered themselves for re-election at the said meeting. Mr. Chan and Mr. Chow had been re-appointed by separate resolutions of the shareholders at the said meeting.

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DIRECTORS

On 1st April 2020, Ms. Ye Meihua as the non-executive director and Mr. Leng Buli as the executive director of the Company had resigned from the position of non-executive director and executive director of the Company respectively due to their appointments in other companies, and Ms. Zhong Yan was appointed as the non-executive director of the Company.

As Dah Chong Hong Holdings Limited (a former Hong Kong listed company) was privatised in January 2020, Mr. Chan Kay-cheung ceased to serve as an independent non-executive director of the company.

Apart from the above mentioned changes of directors, the Company is not aware of any change in the information of directors of the Company required to be disclosed pursuant to Rule 13.51B of the Listing Rules during the period since 31st December 2019.

As at the date of this report, the Company's executive directors are Mr. Huang Liezhang, Mr. Wu Qiang, Mr. Chen Jie, and Mr. Liu Wuwei; non-executive director is Ms. Zhong Yan; and independent non-executive directors are Mr. Chan Kay-cheung, Ms. Yau Lai Man and Mr. Chow Bing Sing.

By Order of the Board

Wu Qiang

Managing Director

Hong Kong, 26th August 2020

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