China Infrastructure & Logistics Group Ltd. — Earnings Release 2022

Aug 12, 2022

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 disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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China Infrastructure & Logistics Group Ltd. 中國通商集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1719)

POSITIVE PROFIT ALERT

This announcement is made by China Infrastructure & Logistics Group Ltd. (the “ Company ”, and together with its subsidiaries, the “ Group ”) pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board (the “ Board ”) of directors (“ Directors ”) of the Company would like to inform the shareholders and potential investors of the Company that, based on the preliminary assessment of the latest unaudited consolidated management accounts of the Group for the six months ended 30 June 2022 and the financial information currently available to the Board, it is expected that the Group will record an increase of approximately 85% to 105% in the profit for the period from continuing operations and discontinued operation for the six months ended 30 June 2022, as compared to that for the six months ended 30 June 2021 of HK$12.02 million. The anticipated increase in the profit for the period is primarily due to (i) the increase in the standard tariff of both gateway cargoes and trans-shipment cargoes since January 2022, after the completion of acquisition of the controlling interests of the Group by Hubei Port (Hong Kong) International Limited. After Phase I, Phase II and Phase III of Yangluo Port area have been integrated successfully, the price cutting competition ceased to exist; (ii) the decrease in the general and administrative expenses and other operating expenses due to the tightening expenses control for the six months ended 30 June 2022; (iii) loss on disposal of subsidiaries of HK$5.99 million incurred during the six months ended 30 June 2021 and no such loss incurred during the six months ended 30 June 2022; and (iv) the expected fair value gain of investment properties due to the increase in market rent of the warehouse properties in Wuhan and the increase in the property occupancy rate, as compared to that for the six months ended 30 June 2021.

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As the Company is still in the process of finalising its interim results for the six months ended 30 June 2022, the information contained in this announcement is only based on a preliminary assessment by the management of the Company with reference to the information currently available to it and the latest unaudited consolidated management accounts of the Group for the six months ended 30 June 2022 which have not been reviewed by the audit committee or the auditors of the Company, and are therefore subject to possible adjustments upon further review. The actual results of the Group may also be affected by other factors such as professional valuation on the fair value of the investment properties of the Group for the six months ended 30 June 2022 which is pending finalisation. Further details of the Group’s results for the six months ended 30 June 2022 will be disclosed in the interim results announcement of the Company, which is expected to be released by the end of August 2022.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By the order of the Board China Infrastructure & Logistics Group Ltd. Mr. Li Xiaoming Executive Director and Chairman

Hong Kong, 12 August 2022

As at the date of this announcement, the Board comprises Mr. Li Xiaoming and Mr. Qiao Yun as executive Directors; Ms. Zhou Wei and Mr. Xu Aoling as non-executive Directors; and Mr. Chau Kwok Keung, Mr. Fu Xinping and Dr. Mao Zhenhua as independent non-executive Directors.

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