China Infrastructure & Logistics Group Ltd. — Interim / Quarterly Report 2021

Aug 27, 2021

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)

INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2021

The board (the “ Board ”) of directors (the “ Directors ”) of China Infrastructure & Logistics Group Ltd. (the “ Company ”) is pleased to announce the condensed consolidated results of the Company and its subsidiaries (collectively, the “ Group ”) for the six months ended 30 June 2021, together with the comparative amounts for the corresponding period in 2020.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Continuing operations Revenue Gross proft Gross proft margin Proft/(Loss) for the period Proft/(Loss) for the period attributable to owners of the Company Earning/(Loss) per share attributable to owners of the Company — Basic and diluted (HK cents) Discontinued operation Revenue Gross proft Gross proft margin Proft/(Loss) for the period Proft/(Loss) for the period attributable to owners of the Company Earning/(Loss) per share attributable to owners of the Company — Basic and diluted (HK cents)

Six months ended 30 June 2021 2020 HK$’000 HK$’000 (Restated) 122,512 75,233 41,539 42,242 33.9% 56.1% 5,628 (8,896) 7,352 (6,796) 0.43 (0.39) 18,369 — 662 — 3.6% N/A 6,390 (1,355) 6,390 (1,355) 0.37 (0.08)

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Total non-current assets Total current assets Total assets Total non-current liabilities Total current liabilities Total liabilities Net assets	As at 30 June 2021 HK$’000 1,434,327 225,823 1,660,150 321,019 433,159 754,178 905,972	As at 31 December 2020 HK$’000 1,619,750 250,476
		1,870,226
		313,294 634,627
		947,921
		922,305

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HIGHLIGHTS

For the six months ended 30 June 2021

Comparing to the corresponding six months ended 30 June 2020 (“ 2020 Interim Period ”):

Continuing operations

• Revenue increased by approximately 62.8% to HK$122.51 million (2020 Interim Period: HK$75.23 million), mainly driven by the increase in overall business volume due to the economic recovery after the Coronavirus Disease 2019 (COVID-19) (the “ Pandemic ”) which showed signs of containment since the second half of 2020. The overall increase in revenue is mainly attributable to (i) the significant increase in revenue of HK$33.12 million from the supply chain management and trading business as most of which was contributed by the cement trading business which commenced in the second half of 2020; (ii) the increase in revenue of HK$7.60 million from integrated logistics service due to the increase in business volume from the Hannan Port (漢南港); (iii) the increase in revenue of HK$1.53 million from the terminal service business, notwithstanding that the increase in container throughput was partly offset by the lowering of overall tariff rates to align with those charged by neighbouring ports; and (iv) the increase in revenue of HK$6.24 million from general and bulk cargo handling service conduced through the Hannan Port and the Shipai Port (石牌港).

• Overall container throughput of the WIT Port (武漢陽邏港) increased by approximately 92.6% to 396,577 TEUs (2020 Interim Period: 205,878 TEUs), mainly due to (i) the gateway cargoes throughput increased by approximately 16.6% to 146,005 TEUs (2020 Interim Period: 125,171 TEUs); and (ii) the trans-shipment cargoes throughput increased by approximately 210.5% to 250,572 TEUs (2020 Interim Period: 80,707 TEUs). This was mainly attributable to the recovery from Pandemic and the co-operation Wuhan Jingkai Port to open up new trans-shipment routes.

• The Group’s market share of container throughput in Wuhan decreased from 43.6% for the year ended 31 December 2020 to 41.6%. The decrease was mainly due to the continuing competition arising from neighbouring ports during the period.

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• Gross profit decreased by 1.7% to HK$41.54 million (2020 Interim Period: HK$42.24 million). Gross profit margin decreased to 33.9% (2020 Interim Period: 56.1%). The decreases were mainly due to diluting effect with the income from supply chain management and trading business with relatively lower gross profit margin.

• EBITDA decreased by approximately 25.4% to HK$20.63 million (2020 Interim Period: HK$27.66 million) as a result of (i) the drop in gross profit of HK$0.70 million; (ii) the decrease in other income of HK$2.71 million mainly due to the decrease in the sundry income of HK$2.02 million received from a tenant of the Hannan Port following the Group’s winning of a lawsuit on rental dispute with a lessee in the 2020 Interim Period and no such sundry income was recorded during the period; and (iii) the increase in general, administrative and other operating expenses (exclude depreciation and amortisation) of HK$3.62 million due to the resumption of work of the staff after the Pandemic.

• Profit attributable to owners of the Company for the period was HK$7.35 million, an increase of 208.2% from the loss for the period attributable to owners of the Company of HK$6.80 million for the 2020 Interim Period. The increase was mainly attributable to the offsetting effect of (i) the decrease in EBITDA of HK$7.03 million; (ii) the fair value gain of investment properties of HK$27.70 million; (iii) the loss on disposal of subsidiaries of HK$5.99 million; and (iv) the increase in income tax expense of HK$5.95 million during the period.

Earning per share attributable to owners of the Company was HK0.43 cents (2020 Interim Period: loss per share attributable to owners of the Company of HK0.39 cents).

Discontinued operation

• Discontinued operation represented the disposal of Zhongji Tongshang Municipal Construction Engineering (Wuhan) Co., Ltd (“ Zhongji Tongshang Construction ”). The increase in revenue from construction business was due to the temporary suspension of construction work during the first half of 2020 due to the Pandemic and as a result, no construction income had been generated for the 2020 Interim Period. In June 2021, Zhongji Tongshang Construction was disposed of and upon completion of disposal ceased to be an indirectly wholly-owned subsidiary of the Company. The Group discontinued its operation in the provision of construction services.

• The gross profit was HK$662,000 and the gross profit margin was 3.6%. The profit attributable to owners of the Company was HK$6.39 million (2020 Interim Period: loss for the period attributable to owners of the Company of HK$1.36 million).

• Earning per share attributable to owners of the Company was HK0.37 cents (2020 Interim Period: loss per share attributable to owners of the Company of HK0.08 cents).

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OTHER HIGHLIGHTS

Disposal of 60% equity interests in Shayang County Guoli Transportation Investment Co., Limited (“Shayang Guoli”)

On 1 March 2021, CIG Wuhan Multipurpose Port Limited (“ Wuhan Multipurpose ”), an indirect whollyowned subsidiary of the Company, entered into a disposal agreement with Shayang Xingang Investment Development Centre (“ Shayang Xingang ”), an organisation under the county government of Shayang County of Hubei Province of the People’s Republic of China (the “ PRC ”) in relation to the disposal of 60% equity interests of Shayang Guoli at a consideration of approximately RMB47.1 million (equivalent to approximately HK$56.5 million) (the “ Shayang Guoli Disposal ”). The Shayang Guoli Disposal was subsequently completed in March 2021 and Shayang Guoli has since ceased to be an indirectly non-wholly owned subsidiary of the Company, and Shayang Guoli’s financial results will no longer be consolidated into the Group’s consolidated financial statements.

For further details, please refer to the announcement of the Company dated 1 March 2021.

Disposal of 100% equity interests in Zhongji Tongshang Construction

On 21 May 2021, Tongshang Enterprise Investment Group Company Limited, an indirect wholly-owned subsidiary of the Company, entered into a disposal agreement with Wuhan Hongcheng Shidai Construction Company Limited (武漢宏城時代建設有限公司) (“ Wuhan Hongcheng ”), a company established in the PRC with limited liability, in relation to the disposal of 100% equity interests of Zhongji Tongshang Construction at a consideration of approximately RMB46.8 million (equivalent to approximately HK$56.2 million) (the “ Zhongji Tongshang Construction Disposal* ”). The Zhongji Tongshang Construction Disposal was subsequently completed in June 2021 and Zhongji Tongshang Construction has since ceased to be an indirectly wholly-owned subsidiary of the Company. The Group discontinued its operation in the provision of construction services, and Zhongji Tongshang Construction’s financial results will no longer be consolidated into the Group’s consolidated financial statements.

Following the disposal of equity interests in Zhongji Tongshang Construction, the construction segment of the Group’s operations ceased to continue and the results of the construction segment was reclassified as a discontinued operation.

For further details, please refer to the announcement of the Company dated 21 May 2021.

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Disposal of 100% equity interests in Zhongji Tongshang Yuanlin (Wuhan) Co., Ltd. (“Zhongji Tongshang Yuanlin”)

On 21 May 2021, Tongshang Enterprise Investment Group Company Limited, an indirect wholly-owned subsidiary of the Company, entered into a disposal agreement with Wuhan Minfudong Construction Company Limited (武漢民福東建材有限公司) (“ Wuhan Minfudong Construction* ”), a company established in the PRC with limited liability, in relation to the disposal of 100% equity interests of Zhongji Tongshang Yuanlin at a consideration of approximately RMB3.4 thousand (equivalent to approximately HK$4.1 thousand) (the

“ Zhongji Tongshang Yuanlin Disposal ”). The Zhongji Tongshang Yuanlin Disposal was subsequently completed in June 2021 and Zhongji Tongshang Yuanlin has since ceased to be an indirectly wholly-owned subsidiary of the Company, and Zhongji Tongshang Yuanlin’s financial results will no longer be consolidated into the Group’s consolidated financial statements.

As all the applicable percentage ratios in respect of the disposal did not exceed 5%, the disposal did not constitute a discloseable transaction of the Company subject to the reporting and announcement requirements under Chapter 14 of the Listing Rules.

Disposal of 100% equity interests in Zhongji Tongshang Construction (Wuhan) Co., Ltd. (“Zhongji Tongshang Construction (Wuhan)”)

On 21 May 2021, Tongshang Enterprise Investment Group Company Limited, an indirect wholly-owned subsidiary of the Company, entered into a disposal agreement with Wuhan Lingqiaojia Trading Company Limited (武漢玲巧嘉貿易有限公司) (“ Wuhan Lingqiaojia Trading ”), a company established in the PRC with limited liability, in relation to the disposal of 100% equity interests of Zhongji Tongshang Construction (Wuhan) at a consideration of approximately RMB1.4 million (equivalent to approximately HK$1.6 million) (the “ Zhongji Tongshang Construction (Wuhan) Disposal* ”). The Zhongji Tongshang Construction (Wuhan) Disposal was subsequently completed in June 2021 and Zhongji Tongshang Construction (Wuhan) has since ceased to be an indirectly wholly-owned subsidiary of the Company, and Zhongji Tongshang Construction (Wuhan) financial results will no longer be consolidated into the Group’s consolidated financial statements.

As all the applicable percentage ratios in respect of the disposal did not exceed 5%, the disposal did not constitute a discloseable transaction of the Company subject to the reporting and announcement requirements under Chapter 14 of the Listing Rules.

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MANAGEMENT DISCUSSION AND ANALYSIS

Results

	Continuing operations Revenue Cost of services rendered and goods sold Gross proft Other income General, administrative and other operating expenses (exclude depreciation and amortisation) Operating proft/EBITDA Finance costs — net EBTDA Depreciation and amortisation Change in fair value of investment properties Loss on disposal of subsidiaries Share of proft/(loss) of an associate Proft/(Loss) before income tax Income tax expense Proft/(Loss) for the period Non-controlling interests Proft/(Loss) attributable to owners of the Company	Six months ended 30 June 2021 2020 HK$’000 HK$’000 (Unaudited) (Unaudited) (Restated) 122,512 75,233 (80,973) (32,991) 41,539 42,242 1,532 4,237 (22,438) (18,821) 20,633 27,658 (14,050) (9,658) 6,583 18,000 (15,878) (14,864) 27,695 (10,828) (5,988) — 74 (295) 12,486 (7,987) (6,858) (909) 5,628 (8,896) 1,724 2,100 7,352 (6,796)

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	Discontinued operation Revenue Cost of services rendered and goods sold Gross proft General, administrative and other operating expenses (exclude depreciation and amortisation) Operating loss/EBITDA Interest income EBTDA Depreciation and amortisation Gain on disposal of discontinued operation Proft/(Loss) before income tax Income tax credit Proft/(Loss) for the period Proft/(Loss) attributable to owners of the Company	Six months ended 30 June 2021 2020 HK$’000 HK$’000 (Unaudited) (Unaudited) (Restated) 18,369 — (17,707) — 662 — (1,584) (1,109) (922) (1,109) 6 — (916) (1,109) (11) (501) 7,317 — 6,390 (1,610) — 255 6,390 (1,355) 6,390 (1,355)

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REVIEW OF OPERATIONS

Overall business environment

The principal activities of the Group are investment in and development, operation and management of container and other ports, and the provision of port related, logistics and other services including integrated logistics, port and warehouse leasing and supply chain management and trading business, mainly conducted through various ports, including the WIT Port (武漢陽邏港), the Multi-Purpose Port (通用港口), the Hannan Port (漢南港), the Shayang Port (沙洋港) and the Shipai Port (石牌港), all located in the Yangtze River Basin in Hubei Province, the PRC. As disclosed in the announcement dated 21 May 2021, the group disposed of its 100% equity interests in Zhongji Tongshang Construction. The Group discontinued its operation in the provision of construction services.

The WIT Port and the Multi-Purpose Port

The WIT Port is located along the Yangtze River in the Yangluo Economic Development Zone, Wuhan, Hubei Province, the PRC.

The strong and well established industrial base of Wuhan featuring operators in major industries, including automobile and its components, chemical, steel, textile, machinery and equipment as well as those in the construction materials businesses have been, and will continue to be the principal providers of gateway cargoes to the WIT Port.

Due to the inherent water-depth limitations along the upstream regions of the Yangtze River, large ships are precluded from navigating directly between those areas and Shanghai. The trans-shipment service provided by the WIT Port offers a more economical alternative for these areas, namely the trans-shipment of container cargoes to Shanghai or direct shipping overseas upon amalgamation at Yangluo Port. Surrounding areas which are serviced by the WIT Port include Hunan, Guizhou, Chongqing, Sichuan, Shanxi, Henan, Hubei and Shaanxi Provinces. Strategic initiatives by the government for shipping companies and the WIT Port promotes water-to-water trans-shipment to Yangshan Port in Shanghai and direct shipment to Japan （江海直航） have further strengthened the position of the WIT Port as a trans-shipment port at the mid-stream of the Yangtze River. Phase I terminal of Yangluo Port opened the first direct international shipping route from Wuhan to Japan in the fourth quarter of 2019, which is a milestone of landmark significance as the first international shipping route in the middle and upper reaches of Yangtze River.

The Group has also developed port related services including agency and integrated logistics service to expand its revenue sources, including bonded warehousing, customs clearance, break bulk and distribution at the WIT Port.

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The Multi-Purpose Port, which is located adjacent to the WIT Port, extends the container handling capacity of the Group to beyond that of the WIT Port and supplements the terminal service business operation of the Group alongside the WIT Port. Given the close proximity between the WIT Port and the Multi-Purpose Port, they are jointly operated and managed by Wuhan International Container Company Limited (“ WIT ”). In addition, the Group has cooperated with Wuhan Jingkai Port Company Limited (武漢經開港口有限公司) (“ Wuhan Jingkai Port Company* ”) to manage and operate the Jingkai Port (經開港) to induce rapid growth in its container throughput, expand the container services at the WIT Port, and integrate and optimize port logistics resources, all of which were conducive to the synergy and development of the Group’s port business.

The Hannan Port

The Hannan Port is located along the Yangtze River in Wuhan, adjacent to the Shanghai-Chengdu, Beijing Zhuhai Expressway and within 80 kilometers of the Beijing-Guangzhou Beijing-Kowloon rail link.

Wuhan, the provincial capital of Hubei, is an important transport hub in the PRC. In terms of riverway traffic, Wuhan is linked through the Yangtze River with six provinces (namely Jiangsu, Anhui, Hubei, Sichuan, Jiangxi and Hunan) and Shanghai. Given the important role of Wuhan in the development of the Yangtze River Economic Belt, the Directors consider that it is in the interests of the Group to make further investments in its port businesses in the Wuhan area.

In recent years, the Group has been facing competition from its neighbouring port operator capturing marketing shares from the Group through the deployment of tariff cutting tactics to induce customers to use its port. To capture the future economic growth in Wuhan and to better position itself against the competition from neighbouring ports, the Hannan Port provides an opportunity for the Group to expand its geographical coverage beyond the Yangluo Port area where the WIT Port and the Multi-Purpose Port in Wuhan are located. The Hannan Port creates synergies between the WIT Port and the Hannan Port, particularly because the management team of the WIT Port has extensive experience in the construction, development and management of ports in the PRC. Being the feeder port of the WIT Port, the Hannan Port can increase the throughput capacity of the WIT Port to satisfy the demand for logistics services in Wuhan. The WIT Port, together with the Hannan Port, can provide more cost effective solutions to the Group’s customers. The Hannan Port will be developed into a multi-purpose service platform in several phases, providing terminal, warehousing and logistics services and other services including RORO (Roll on Roll off), bulk cargo transportation and storage, automobile spare parts processing and logistics services.

Phase I of the Hannan Port has been completed. Phase II of the Hannan Port, which will be developed as a multi-purpose port, is in the course of pre-construction work.

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The Shayang Port

The Shayang Port, one of the major port construction projects under the “12th Five-Year Plan” of Hubei Province, the PRC, which serves as a logistics centre and water transportation hub connecting surrounding six provinces, is an essential material distribution centre of Central Wuhan and also a superior port area for the middle reaches of the Han River. The investment in the Shayang Port was made as part of the Group’s strategy to establish a synergistic connection between the Shayang Port and the WIT Port in the Yangtze River Basin. This serves to maximise the WIT Port’s advantage as a logistics centre of the Yangtze River, in line with the development trend of the “Belt and Road (一帶一路)” and the “Yangtze River Economic Belt (長江經濟 帶)” policy in the PRC, and is beneficial to the Group in implementing its strategic aims in the Yangtze River Basin.

The Shayang Port is planned to have six berths. The port commenced commercial operation in 2018. The testing of equipment for the sixth berth has been completed and became operational in the first half of 2019. Prior to the Shayang Guoli Disposal, the Group had obtained the port operating licence of 4 berths.

On 1 March 2021, the Group entered into an agreement to dispose of its 60% equity interests in Shayang Guoli, the subsidiary which holds the Shayang Port owning the porting facilities and terminal equipment. The Shayang Guoli Disposal was subsequently completed in March 2021. Further details are set out in the announcement of the Company dated 1 March 2021.

The Hanjiang logistics centre comprises 7 blocks of warehouses and an ancillary office building and is intended to be held as investment property for generating rental income.

The Shipai Port

The Shipai Port is located in Shipai Town, Zhongxiang City, Hubei Province, the PRC and is intended to be developed into a port, logistics and industrial mixed-use port district with an area of approximately 25 square kilometers. The port portion of the Shipai Port will occupy an area of approximately 2.5 square kilometers with four 1000-tonne class berths, and a logistics park covering approximately 2.5 square kilometers will be constructed next to the port area. The investment in the Shipai Port provides an opportunity for the Group to expand its geographical coverage and create synergy among its ports.

The Shipai Port commenced commercial operations in 2018. The inspection and acceptance of the construction of the temporary stacking yard and berths was completed in 2019 and 2021 respectively.

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Zhongji Tongshang Construction

Zhongji Tongshang Construction has been negotiating for the role of the main contractor in municipal construction projects in Hubei Province. As a main contractor in construction project, Zhongji Tongshang Construction will be expected to act as the entity in charge of the entire project, and will be responsible for completion or outsourcing of the construction works and supervision of the project to ensure that it will be completed on time, within budget, and ensuring that the construction work will meet all relevant regulations and quality standards.

The Group commenced its construction business through Zhongji Tongshang Construction since December 2019, as a main contractor for the provision of construction services for various construction works, including residential structures, commercial structures and performance stages. Prior to the Zhongji Tongshang Construction Disposal, Zhongji Tongshang Construction acted as the platform for the Group to diversify its business and explore new business opportunities in the construction industry.

On 21 May 2021, the Group entered into an agreement to dispose of its 100% equity interests in Zhongji Tongshang Construction. The Zhongji Tongshang Construction Disposal was subsequently completed in June 2021. The Group discontinued its operation in the provision of construction services. Further details are set out in the announcement of the Company dated 21 May 2021.

Tongshang Supply Chain

Leveraging the Group’s extensive experience in the operation and management of various ports and terminals located within the Yangtze River Basin in Hubei Province, coupled with its solid customer and supplier network cultivated during its many years of business operation, Tongshang Supply Chain Management (Wuhan) Co., Ltd. （通商供應鏈管理（武漢）有限公司） (“ Tongshang Supply Chain* ”) serves as the principal supply chain service provider and trader for up-stream suppliers and down-stream customers through the supply chain management and trading business of the Group. The development of supply chain management and trading business will enable the Group to establish deeper connections with both supply and demand sides of the supply chain, engage in various businesses such as trading, logistics, storage and delivery, and enhance efficiency of integrated services. At the same time, it will enable the Group to consolidate and optimise flows of commodities, capital and information for the supply chain, which will facilitate trading enterprises to enhance intelligent trading, reduce costs and strengthen competitiveness.

As a result of the increasing demand from the downstream customers for the supply chain management and trading service since the containment of the Pandemic, the income from the supply chain management and trading business increased during the period.

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Operating results

Revenue

Continuing operations

Terminal service Integrated logistics service Property business Container handling, storage & other service General and bulk cargoes handling service Supply chain management and trading business Discontinued operation Construction services	Six months ended 30 June 2021 2020 HK$’000 % HK$’000 % (Unaudited) (Unaudited) 44,537 36.4 43,013 57.2 20,602 16.8 13,000 17.3 4,526 3.6 5,267 7.0 11,578 9.5 12,050 16.0 8,148 6.7 1,903 2.5 33,121 27.0 — — 122,512 100.0 75,233 100.0 18,369 100.0 — —	Increase/(Decrease) HK$’000 % 1,524 3.5 7,602 58.5 (741) (14.1) (472) (3.9) 6,245 328.2 33,121 N/A 47,279 62.8 18,369 N/A

Continuing operations

For the six months ended 30 June 2021, the Group’s revenue amounted to HK$122.51 million (2020 Interim Period: HK$75.23 million), representing an increase of HK$47.28 million or approximately 62.8% as compared to the 2020 Interim Period. The increase in revenue was mainly driven by the increase in overall business volume due to the economic recovery after the Pandemic which showed signs of containment since the second half of 2020. The overall increase in revenue is mainly attributable to (i) the significant increase in revenue of HK$33.12 million from the supply chain management and trading business as most of which was contributed by the cement trading business which commenced in the second half of 2020; (ii) the increase in revenue of HK$7.60 million from integrated logistics service due to the increase in business volume from the Hannan Port; (iii) the increase in revenue of HK$1.52 million from the terminal service business, notwithstanding that the increase in container throughput was partly offset by the lowering of overall tariff rates to align with those charged by neighbouring ports; and (iv) the increase in revenue of HK$6.25 million from general and bulk cargo handling service conducted through the Hannan Port and the Shipai Port.

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Terminal service

Container throughput

Gateway cargoes Trans-shipment cargoes	Six months ended 30 June 2021 2020 TEUs % TEUs % 146,005 36.8 125,171 60.8 250,572 63.2 80,707 39.2 396,577 100.0 205,878 100.0	Increase TEUs % 20,834 16.6 169,865 210.5 190,699 92.6

The throughput of the WIT Port for the six months ended 30 June 2021 was 396,577 TEUs, representing an increase of 190,699 TEUs or approximately 92.6% compared to 205,878 TEUs for the 2020 Interim Period. Of the 396,577 TEUs handled, 146,005 TEUs or approximately 36.8% (2020 Interim Period: 125,171 TEUs or approximately 60.8%) and 250,572 TEUs or approximately 63.2% (2020 Interim Period: 80,707 TEUs or approximately 39.2%) were attributable to gateway cargoes and trans-shipment cargoes, respectively.

The increase in overall container throughput was mainly attributable to 16.6% increase in gateway cargoes and 210.5% increase in trans-shipment cargoes. Following the economic recovery after the Pandemic, the Group has taken the initiative to elevate its business level at the WIT Port from existing customers through the enhancement of quality of services and the drive to develop new import (inbound) businesses. As a result, gateway cargoes increased during the period. The increase in trans-shipment cargoes is mainly due to cooperation with Wuhan Jingkai Port Company since January 2020 that opens up eastwest routes and serves enterprises around the Wuhan Development Zone, attracting more trans-shipment cargoes from upstream of Wuhan Yangtze River such as Chongqing to transit through Jingkai Port to WIT Port via the water shuttle bus.

Average tariff

Tariff, which is dominated in Renminbi (“ RMB ”), is converted into Hong Kong Dollars, the reporting currency of the Group. The average tariff for gateway cargoes at the WIT Port for the six months ended 30 June 2021 was RMB210 (equivalent to approximately HK$252) per TEU (2020 Interim Period: RMB219 (equivalent to approximately HK$241) per TEU), representing a decrease of approximately 4.1% compared to that of the 2020 Interim Period. The average tariff for trans-shipment cargoes at the WIT Port was RMB11 (equivalent to approximately HK$13) per TEU (2020 Interim Period: RMB30 (equivalent to approximately HK$33) per TEU), decreased by approximately 63.3% as compared to that of the 2020 Interim Period. The decrease in the tariff for the trans-shipment cargoes was due to the transportation of empty containers in between WIT Port and Wuhan Jingkai Port with relatively lower tariffs.

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Market share

In terms of market share of Yangluo Port area, the Group’s market share decreased from 43.6% for the year ended 31 December 2020 to 41.6% for the six months ended 30 June 2021. The decrease in market share was mainly attributable to the continuing competition arising from neighbouring ports during the current period.

Integrated logistics service

The integrated logistics service business of the Group provides agency and logistics services, including provision of freight forwarding, customs clearance, transportation of containers and logistics management. Revenue generated from the integrated logistics service business increased to HK$20.60 million for the six months ended 30 June 2021 (2020 Interim Period: HK$13.0 million) which accounted for approximately 16.8% of the Group’s total revenue for the six months ended 30 June 2021 (2020 Interim Period: 17.3%).

The increase in revenue from integrated logistics service for the six months ended 30 June 2021 was mainly attributable to the increase in business volume from the Hannan Port.

Property business

Income for the property business is mainly generated from the port and warehouse leasing business of the Hannan Port, which owns investment properties of leasehold lands, berth, commercial buildings and pontoon, as well as the leasing out of a stacking yard and certain warehouses at the WIT Port. The port and warehouse leasing income decreased to HK$4.53 million (2020 Interim Period: HK$5.27 million) which accounted for approximately 3.6% of the Group’s total revenue for the six months ended 30 June 2021 (2020 Interim Period: 7.0%).

The decrease in revenue for the six months ended 30 June 2021 was mainly due to the expiry of the lease of a stacking yard at the WIT Port.

Gross profit and gross profit margin

Gross profit for the six months ended 30 June 2021 was HK$41.54 million, representing a decrease of HK$0.7 million as compared with HK$42.24 million for the 2020 Interim Period. Gross profit margin for the six months ended 30 June 2021 was 33.9% compared with gross profit margin of 56.1% for the 2020 Interim Period. The decrease in gross profit was mainly due to diluting effect with the income from supply chain management and trading business with relatively lower gross profit margin.

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Other income

Other income for the six months ended 30 June 2021 decreased by 63.8% to HK$1.53 million (2020 Interim Period: HK$4.24 million). The decrease was mainly attributable to the decrease in the sundry income of HK$2.02 million being received from a tenant of the Hannan Port following the Group’s winning of a lawsuit on rental dispute with lessee in the 2020 Interim Period and no such sundry income was recorded during the period.

Change in fair value of investment properties

The Group holds certain investment properties, including (i) port and warehouses in the Hannan Port; (ii) a logistics centre adjacent to the Shayang Port; and (iii) a stacking yard and certain warehouses at the WIT Port. The Group’s investment properties are revalued at the end of the reporting period on an open market value basis by an independent property valuer. Changes in fair value arising from such revaluations are accounted for as “change in fair value of investment properties” through the consolidated statement of profit or loss and other comprehensive income. For the six months ended 30 June 2021, the Group recorded fair value gain in the value of investment properties of HK$27.70 million (2020 Interim Period: fair value loss of HK$10.83 million).

The fair value gain of investment properties is mainly due to the recovery of offices and warehouses property markets in Wuhan, as compared to the 2020 Interim Period (during the outbreak of the Pandemic).

Loss on disposal of subsidiaries

The loss on disposal of subsidiaries was HK$5.99 million for the six months ended 30 June 2021, representing the net effect of (i) loss on disposal of Shayang Gouli of HK$6.58 million; and (ii) gain on disposal of Zhongji Tongshang Yuanlin of HK$99,000 and Zhongji Tongshang Construction (Wuhan) of HK$497,000.

Share of profit/(loss) of an associate

Share of profit was HK$74,000 for the six months ended 30 June 2021 (2020 Interim Period: share of loss of HK$295,000) of an associate, namely Wuhan Chang Sheng Gang Tong Automobile Logistics Company Limited（武漢長盛港通汽車物流有限公司） (“ Wuhan Chang Sheng Gang Tong* ”), which reflected the Group’s share of the results of its 20.4% equity interests of the entity. The principal activities of Wuhan Chang Sheng Gang Tong are sales of motor vehicles and provision of car parking services.

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Profit for the period attributable to owners of the Company

Profit for the period attributable to owners of the Company was HK$7.35 million, an increase of 208.2% from the loss for the period attributable to owners of the Company of HK$6.80 million for the 2020 Interim Period. The increase was mainly attributable to the offsetting effect of (i) the decrease in EBITDA of HK$7.03 million; (ii) the fair value gain of investment properties of HK$27.70 million; (iii) the loss on disposal of subsidiaries of HK$5.99 million; and (iv) the increase in income tax expense of HK$5.95 million during the period.

Earning per share attributable to owners of the Company for the six months ended 30 June 2021 was HK0.43 cents (2020 Interim Period: loss per share attributable to owners of the Company of HK0.39 cents).

Discontinued operation

Construction business

The Group commenced its construction business through Zhongji Tongshang Construction in December 2019, acting as main contractor for the provision of construction services for the projects of (i) the residential structures and commercial structures and a performance stage at Northwest of Bayuanhe Bridge, Provincial Highway S309, Shengli Town, Luotian County, Huanggang City, Hubei Province, the PRC (中國湖北省 黃岡市羅田縣勝利鎮S309省道巴源河大橋西北); and (ii) the major and secondary structural construction, earthworks, drainage installation works and other ancillary works for residential and commercial buildings (both 3-storey or below) at Yangdian Town, Xiaogan City, Hubei Province, the PRC (中國湖北省孝感市楊 店鎮). The increase in revenue was due to the temporary suspension of construction work during the first half of 2020 due to the Pandemic and as a result, no construction income had been generated for the 2020 Interim Period. In June 2021, Zhongji Tongshang Construction was disposed and ceased to be an indirectly whollyowned subsidiary of the Company. The Group discontinued its operation in the provision of construction services.

Gain on disposal of discontinued operation

The gain on disposal of discontinued operation was HK$7.32 million for the six months ended 30 June 2021, representing the gain on disposal of Zhongji Tongshang Construction. On 21 May 2021, the Group entered into an agreement to dispose of its 100% equity interests in Zhongji Tongshang Construction. The Zhongji Tongshang Construction Disposal was subsequently completed in June 2021. The Group discontinued its operation in the provision of construction services.

– 17 –

FORWARD LOOKING

Under the new development pattern in the PRC, which is based on international and domestic dual circulation and mutual promotion, along with domestic macro-circulation, Wuhan is ordained to be the main development center of the “Belt and Road （一帶一路）” strategy and the “Yangtze River Economic Belt （長江經濟帶）”. During the 14th Five-Year Plan period, Hubei Province and Wuhan City successively introduced policies to support the development of the port and shipping industry. The Hubei Provincial Government has issued a three-year action plan for the development of multimodal transport across the province to facilitate multimodal transport. The plan aims to continuously optimize the transportation structure, enhance the transportation efficiency and reduce logistics costs by improving the multimodal transportation collection and distribution system, building multimodal transportation demonstration projects, and creating multimodal transportation brand lines for the establishment of national multimodal transportation in the province. Wuhan transportation development plan facilitates 174 projects to speed up the construction of Wuhan into an international comprehensive transportation hub and a port-type national logistics hub. As a result, the Group continues to maintain an optimistic view towards the prospects of the port business in the PRC and expects continuing growth in freight volumes in the PRC. In particular, the Group remains confident in the development for inner ports along the “Yangtze River Economic Belt （長江經濟帶）”.

In recent years, the Group has accelerated its transformation and upgraded to a “Port Logistics” business model, with a focus on port construction and operation, port and warehouse leasing, provision of logistics services in the middle reaches of the Yangtze River. The Group has expanded its integrated port-surrounding processing trade and specialized port management services and infrastructure investment to establish an integrated service system, aiming to build the largest inland port logistics system and a leading portsurrounding logistics ecosystem in the PRC.

During the past few years, the Group had faced continuing price cutting competitions from neighbouring port operators of Yangluo Port area. To remain competitive, the Group will continue to align its container tariff rates with those of the neighbouring ports, enhance the quality of services provided to customers and endeavour to develop the import (inbound) businesses.

Leveraging off its port management and operating experience and as an added measure to reduce vicious competition between ports, the Group is looking to expand the cargo hinterland of its existing ports. Up to July 2021, the Group has cooperated with ports inside and outside the province to expand logistics trade. It has fully managed and operated the Jingkai Port within the province. This will facilitate the integration of management of the Yangluo Port and the Jingkai Port and the migration of certain functions of the Yangluo Port to the upstream sector. Both parties will jointly work towards the retention of existing and development of new customers who are located at the upstream of Wuhan Yangtze River, thereby increasing steadily the container throughput at Jingkai Port. Leveraging the integration of operation of Jiangsu Huai’an Port and Zhejiang Zhoushan Port and the inland rivers of the Yangtze River and coastal ports, the Group will accelerate the transformation and upgrade of the Yangtze River shipping, improve its quality and efficiency and open up new logistics channels between coastal ports and the central and western regions, in order to realize a domestic regional logistics platform and complete the domestic economic cycle.

– 18 –

In order to spur momentum towards the development of the Group’s new businesses while adhering to the “Port Logistics” model, plans of the Group include (i) development of the port, industry and city and the development of the industrial park with focus on the port, and the layout in such areas as cold chain trading, storage and processing, and integrated information management services, as well as port-surrounding processing, trading and logistics by means of production; (ii) expansion and enhancement in commoditytrading supply chain projects associated with the port business. Relying on the domestic port cooperation projects that are cross-regional and leveraging regional advantages, the Group’s supply chain services can put huge emphasis on agricultural and sideline products including soybeans and wheat, as well as construction materials such as gravel, cement and clinker. As for the port logistics business, bulk cargo transportation will be upgraded to container transportation, which is proven to be a greener way of urban transportation on top of being able to augment container throughput of the ports by a large margin; (iii) expansion and improvement of supply chain projects on commodities trading related to port business. Based on the market demand of the Southeast Asian market, the Group relies on resources such as the operation of Wuhan Yangluo Port and international trade channels, and works with the local government platforms to integrate high-quality agricultural by-products resources in Northwest Hubei, build up a regional modern bonded logistics base, and foster the development of new operational modes and models of international trade; and (iv) the cooperation with terminals along Yangtze River relying on professional and international port operation experience, optimisation and integration of port resources in the middle reaches of the Yangtze River for the establishment of a shipping and logistics network across the region.

In addition, the Group has put its attention on the projects on the green and smart ports and green ecoindustrial chain in Hubei Province under the promotion of relevant policies by the Hubei Port and Shipping Bureau* （湖北省港航管理局）.

Throughout the years, the Group has benefited from favorable policies for its port business from the Hubei Provincial Government and the Wuhan Municipal Government and complemented certain policies implemented recently, with an aim to expand the scale of container transportation in Wuhan, consolidating Wuhan’s status as a core port for containers shipping midstream of the Yangtze River Basin. Recently, in response to the Hubei Provincial Government’s goal of establishing the ports of Wuhan into a maritime centre along the middle reaches of the Yangtze River with “a port of 100 million tons and 10 million TEUs” by 2030, the Group advised on the roadmap for “Promoting the Construction of New Channels, Assisting Market Development and Ensuring Wuhan Port’s Container Throughput of 5 million TEUs by 2025”. Having fully analyzed the development of the ports of Wuhan, the Group also elaborated on its specific business development plans for the ports in the region under the modes of direct water-to-water shipping, water-towater trans-shipment, rail-water transport, and piggybacking along the river, which was highly valued by the Wuhan Municipal Government and Wuhan New Port Management Committee* （武漢新港管理委員 會）. In light of the support from the Hubei Provincial and Wuhan Municipal governments for port business and implementation of favorable government policies on a continuous basis, the Group believes that the government places great emphasis on the growth and development of the port industry in the Yangtze River Basin. The Group continues to maintain a positive view towards the future prospects of the port industry in Wuhan.

– 19 –

During the period, the disposal of discontinued operation and subsidiaries offered the Group to explore new strategic directions to other ports and business segments which might have relatively higher promising revenue-generating potential and access to a greater pool of funds, and the Group would set aside more time and resources to optimise and deploy new projects, optimising the use of its resources. Furthermore, the disposal will improve the liquidity and financial position of the Group. Notwithstanding the disposal, the Group will continue to develop its ports construction and operation business, should appropriate opportunities arise.

– 20 –

HALF YEAR RESULTS

The Board is pleased to announce the unaudited condensed consolidated half year results of the Group for the six-month ended 30 June 2021, together with the comparative figures for the corresponding period in 2020 which have been reviewed and approved by the audit committee of the Company (the “ Audit Committee ”), as follows:

Condensed consolidated statement of profit or loss and other comprehensive income

For the six-month ended 30 June 2021

Notes Continuing operations Revenue 3 Cost of services rendered and goods sold Gross proft Other income 4 Change in fair value of investment properties 8 General and administrative expenses Other operating expenses Finance costs — net Loss on disposal of subsidiaries 13 Share of proft/(loss) of an associate Proft/(Loss) before income tax Income tax expense 5 Proft/(Loss) for the period from continuing operation Discontinued operation Proft/(Loss) for the period from discontinued operation 12 Proft/(Loss) for the period Other comprehensive income/(expense) for the period Items that may be reclassifed subsequently to proft or loss: Exchange gain/(loss) on translation of fnancial statements of foreign operations — continuing operations — discontinued operation Release of reserve upon disposal of subsidiaries Other comprehensive income/(expense) for the period Total comprehensive income/(expense) for the period	Six-month 2021 HK$’000 (Unaudited) 122,512 (80,973) 41,539 1,532 27,695 (23,038) (15,278) (14,050) (5,988) 74 12,486 (6,858) 5,628 6,390 12,018 15,621 890 (4,089) 12,422 24,440	ended 30 June 2020 HK$’000 (Unaudited) (Restated) 75,233 (32,991) 42,242 4,237 (10,828) (19,633) (14,052) (9,658) — (295) (7,987) (909) (8,896) (1,355) (10,251) (15,060) (899) — (15,959) (26,210)

– 21 –

Notes Proft/(loss) for the period attributable to: Owners of the Company — continuing operations — discontinued operation Non-controlling interests — continuing operations — discontinued operation Total comprehensive income/(expense) attributable to: Owners of the Company — continuing operations — discontinued operation Non-controlling interests — continuing operations — discontinued operation Basic and diluted earning/(loss) per share attributable to owners of the Company (HK cents) 6 — continuing operations — discontinued operation	Six-month 2021 HK$’000 (Unaudited) 7,352 6,390 13,742 (1,724) — (1,724) 12,018 16,321 7,280 23,601 839 — 839 24,440 0.43 0.37 ~~0~~.05 0.80	ended 30 June 2020 HK$’000 (Unaudited) (Restated) (6,796) (1,355) (8,151) (2,100) — (2,100) (10,251) (19,300) (2,254) (21,554) (4,656) — (4,656) (26,210) (0.39) (0.08) (0.47)

– 22 –

As at 30 June 2021

Condensed consolidated statement of financial position

Notes ASSETS AND LIABILITIES Non-current assets Investment properties 8 Property, plant and equipment Construction in progress Land use rights Intangible assets Restricted deposits Interest in an associate Goodwill Deferred tax assets Current assets Inventories Trade and other receivables 9 Contract assets Amount due from an associate Amount due from related companies Government subsidy receivables 10 Cash and cash equivalents	As at 30 June 2021 HK$’000 (Unaudited) 809,040 546,733 24,928 19,385 7,594 11,880 10,162 — 4,605 1,434,327 7,924 142,242 — — 77 38,736 36,844 225,823	As at 31 December 2020 HK$’000 (Audited) 768,298 590,827 197,317 19,328 16,236 11,682 10,088 1,054 4,920 1,619,750 6,258 137,541 27,454 180 56 40,807 38,180 250,476

– 23 –

Notes Current liabilities Trade and other payables 11 Amount due to a non-controlling shareholder Amount due to a related company Amount due to the controlling shareholder Amount due to ultimate holding company Amount due to an associate Bank borrowings Other borrowings Lease liabilities Income tax payable Net current liabilities Total assets less current liabilities Non-current liabilities Other payables 11 Bank borrowings Other borrowings Lease liabilities Deferred tax liabilities Net assets EQUITY Share capital 14 Reserves Equity attributable to owners of the Company Non-controlling interests Total equity	As at 30 June 2021 HK$’000 (Unaudited) 220,117 — — 56,131 1,279 59 51,840 85,007 1,187 17,539 433,159 (207,336) 1,226,991 3,564 153,360 62,520 95 101,480 321,019 905,972 172,507 618,621 791,128 114,844 905,972	As at 31 December 2020 HK$’000 (Audited) 291,080 59,410 136 56,131 1,279 — 120,915 76,447 1,206 28,023 634,627 (384,151) 1,235,599 3,588 116,820 97,112 662 95,112 313,294 922,305 172,507 595,020 767,527 154,778 922,305

– 24 –

Condensed consolidated statement of cash flows

For the six-month ended 30 June 2021

Cash fows from operating activities Cash generated from/(used in) operations Interest paid Income tax paid Net cash from/(used in) operating activities Cash fows from investing activities Purchase of property, plant and equipment Purchase of intangible assets Addition for investment properties Payment for construction in progress Net cash infow from disposal of discontinued operation Net cash infow from disposal of subsidiaries Interest received Net cash from/(used in) investing activities Cash fows from fnancing activities Payment of lease liabilities Proceeds from bank borrowings Repayment of bank borrowings Proceeds from other borrowings Repayment of other borrowings Net cash used in fnancing activities Net decrease in cash and cash equivalents Cash and cash equivalents at 1 January Effect for foreign exchange rate changes Cash and cash equivalents at 30 June

Six-month ended 30 June 2021 2020 HK$’000 HK$’000 (Unaudited) (Unaudited) 43,296 (1,542) (12,298) (15,991) (9,117) (2,553) 21,881 (20,086) (1,719) (1,240) — (6) (25) (1,070) (17,205) (7,433) 6,180 — 54,842 — 67 40 42,140 (9,709) (632) (691) 64,800 32,967 (101,364) (46,167) 4,200 4,000 (33,004) (5,652) (66,000) (15,543) (1,979) (45,338) 38,180 93,327 643 (1,261) 36,844 46,728

– 25 –

Condensed consolidated statement of changes in equity

For the six-month ended 30 June 2021

Attributable to owners of the Company

Balance at 1 January 2021 Total comprehensive income for the period Proft for the period Other comprehensive income/(expense) for the period — Exchange gain on translation of fnancial statements of foreign operations — Disposal of subsidiaries Balance at 30 June 2021	Share capital HK$’000 (Unaudited) 172,507 — — — — 172,507	Share premium HK$’000 (Unaudited) 597,322 — — — — 597,322	Merger reserve HK$’000 (Unaudited) (530,414) — — — — (530,414)	Other reserve HK$’000 (Unaudited) 116,250 — — — — 116,250	Foreign exchange reserve HK$’000 (Unaudited) 11,974 — 13,948 (4,089) 9,859 21,833	Fair value reserve HK$’000 (Unaudited) 46,808 — — — — 46,808	Retained profts HK$’000 (Unaudited) 353,080 13,742 — — 13,742 366,822	Total HK$’000 (Unaudited) 767,527 13,742 13,948 (4,089) 23,601 791,128	Non- controlling interests HK$’000 (Unaudited) 154,778 (1,724) 2,563 (40,773) (39,934) 114,844	Total equity HK$’000 (Unaudited) 922,305 12,018 16,511 (44,862) (16,333) 905,972

– 26 –

Attributable to owners of the Company

Balance at 1 January 2020 Total comprehensive expense for the period Loss for the period Other comprehensive expense for the period — Exchange loss on translation of fnancial statements of foreign operations Balance at 30 June 2020	Share capital HK$’000 (Unaudited) 172,507 — — — 172,507	Share premium HK$’000 (Unaudited) 597,322 — — — 597,322	Merger reserve HK$’000 (Unaudited) (530,414) — — — (530,414)	Other reserve HK$’000 (Unaudited) 116,250 — — — 116,250	Foreign exchange reserve HK$’000 (Unaudited) (36,620) — (13,403) (13,403) (50,023)	Fair value reserve HK$’000 (Unaudited) 46,808 — — — 46,808	Retained profts HK$’000 (Unaudited) 327,220 (8,151) — (8,151) 319,069	Total HK$’000 (Unaudited) 693,073 (8,151) (13,403) (21,554) 671,519	Non- controlling interests HK$’000 (Unaudited) 149,253 (2,100) (2,556) (4,656) 144,597	Total equity HK$’000 (Unaudited) 842,326 (10,251) (15,959) (26,210) 816,116

– 27 –

Notes to the condensed consolidated interim financial information

For the six-month ended 30 June 2021

1. CORPORATE INFORMATION

China Infrastructure & Logistics Group Ltd. (the “ Company ”) is a limited liability company incorporated in the Cayman Islands. The Company’s registered office is located at P.O. Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. The principal place of business of the Company is Suite 2101, 21/F., Two Exchange Square, 8 Connaught Place, Central, Hong Kong.

The Company’s immediate holding company is China Tongshang Investment Group Limited (“ China Tongshang Investment ”), a limited liability company incorporated in the British Virgin Islands. The directors of the Company consider the ultimate holding company to be Zall Holdings Company Limited (“ Zall Holdings ”), a limited liability company incorporated in the British Virgin Islands and is wholly owned and controlled by Mr. Yan Zhi (“ Mr. Yan ”).

The Company is an investment holding company and its subsidiaries (together, the “ Group ”) are principally engaged in the investment in and development, operation and management of container and other ports, and the provision of port related, logistics and other services including integrated logistics, port and warehouse leasing and the supply chain management and trading services. The Group’s operations are based in Hong Kong and the People’s Republic of China (the “ PRC ”).

The condensed consolidated statement of financial position as of 30 June 2021 and the related condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the six-month period then ended, and other explanatory notes (collectively defined as the “ Interim Financial Information ”) of the Group were approved for issue by the board of directors on 27 August 2021. The Interim Financial Information has not been audited but has been reviewed by the audit committee.

The Interim Financial Information is presented in Hong Kong dollars (“ HK$ ”), unless otherwise stated.

2. BASIS OF PREPARATION

This Interim Financial Information have been prepared in accordance with the International Accounting Standard (“ IAS ”) 34, “Interim Financial Reporting” issued by the International Accounting Standards Board (“ IASB ”). The Interim Financial Information also comply with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”).

The accounting policies and methods of computation used in the preparation of the Interim Financial Information are consistent with those used in the annual financial statements for the year ended 31 December 2020 except for the adoption of the new and amended International Financial Reporting Standards (“ IFRSs ”) as disclosed below.

The Interim Financial Information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual financial statements for the year ended 31 December 2020.

– 28 –

Going concern

In preparing the Interim Financial Information, the directors of the Company have given consideration to the future liquidity of the Group in light of its net current liabilities of HK$207,336,000 as at 30 June 2021. This indicates a condition which may cast significant doubt about the Group’s ability to continue as a going concern.

The directors of the Company had made an assessment and concluded that the Group is able to continue as a going concern and will have sufficient financial resources to support its current operations and to meet its financial obligations as and when they fall due for at least the next twelve months from the end of the reporting period, having regard to the following:

• i. after assessing the Group’s current and forecasted cash positions, the Group expects to generate sufficient cash flows for the next twelve months from the end of the reporting period; and

• ii. the Group has obtained confirmation from its controlling shareholder, Mr. Yan, that he will continue to provide financial support to the Group as and when needed for the next twelve months from the end of the reporting period.

Accordingly, the Interim Financial Information has been prepared on a going concern basis.

New and amended IFRSs adopted by the Group

In the current period, the Group has applied for the first time the following amended IFRSs issued by IASB, which are relevant to the Group’s operations and effective for the Group’s Interim Financial Information for the annual period beginning on 1 January 2021.

Amendment to IFRS 16 Covid-19-Related Rent Concessions Amendments to IFRS 9, Interest Rate Benchmark Reform — Phase 2 IAS 39, IFRS 7, IFRS 4 and IFRS 16

The adoption of these amended IFRSs had no material impact on how the results and financial position for the current and prior periods have been prepared and presented.

For those new and amended IFRSs which are not yet effective and have not been early adopted by the Group, the directors expect that the adoption of them have no material impact on the Interim Financial Information.

– 29 –

3. SEGMENT INFORMATION

The Group has five (2020: five) reportable segments as follows:

Property business:	Port and warehouse leasing.
Terminal & related business:	Provision of terminal service, container handling, storage and other service,
	general and bulk cargoes handling service.
Integrated logistics business:	Rendering agency and integrated logistics services, including provision
	of freight forwarding, customs clearance, transportation of containers and
	logistics management.
Supply chain management	Sourcing, procurement and trading of commodities.
and trading business:
Construction business:	Provision of construction services.

No other operating segments have been aggregated to form the above reportable segments.

As disclosed in note 12, the entire equity interests of Zhongji Tongshang Construction, which represent the Group’s construction business segment, was disposed during the six-month ended 30 June 2021. Therefore, the construction business segment is presented as the discontinued operation during the six-month ended 30 June 2021 and the comparative information for the preceding period have been restated.

The accounting policies of the reporting segments are consistent with those used in the annual financial statements for the year ended 31 December 2020.

Segment results represent the profit/loss by each segment without allocation of corporate income and expenses and directors’ emoluments. Total segment assets include all assets with the exception of corporate assets. Total segment liabilities include all liabilities with the exception of corporate liabilities. This is the measure reported to the Group’s chief operating decision maker for the purposes of resource allocation and assessment of segment performance. Inter-segment sales are priced with reference to prices charged to external parties for similar orders. Information regarding the Group’s reportable segments is set out below.

All revenue for six-month periods ended 30 June 2021 and 2020 were sourced from external customers located in the PRC, in addition, over 99% (2020: 99%) of the non-current assets of the Group as at the reporting dates were physically located in the PRC and therefore, no geographic information is presented.

– 30 –

2021

Segment revenue and results

For the six-month ended 30 June 2021

Revenue from external customers Inter-segment revenue Reportable segment revenue Reportable segment results Fair value changes on investment properties Interest income Interest expenses Share of proft of an associate Corporate and other unallocated income/(expense) Proft/(Loss) before income tax Income tax (expense)/credit Proft/(Loss) for the period	Property business HK$’000 (Unaudited) 4,526 — 4,526 2,787 27,695 3 (22) 74 — 30,537 (6,938) 23,599	Terminal & related business HK$’000 (Unaudited) 64,263 4,654 68,917 5,093 — 42 (12,328) — — (7,193) (66) (7,259)	Continuing operations Supply chain Integrated management logistics and trading business business HK$’000 HK$’000 (Unaudited) (Unaudited) 20,602 33,121 2,832 — 23,434 33,121 (798) (1,095) — — — 10 (1,439) — — — — — (2,237) (1,085) 50 96 (2,187) (989)	Elimination HK$’000 (Unaudited) — (7,486) (7,486) — — — — — — — — —	Unallocated corporate income/ (expense) HK$’000 (Unaudited) — — — — — 6 (322) — (7,220) (7,536) — (7,536)	Discontinued operation Construction Total business HK$’000 HK$’000 (Unaudited) (Unaudited) 122,512 18,369 — — 122,512 18,369 5,987 (933) 27,695 — 61 6 (14,111) — 74 — (7,220) 7,317 12,486 6,390 (6,858) — 5,628 6,390	Discontinued operation Construction Total business HK$’000 HK$’000 (Unaudited) (Unaudited) 122,512 18,369 — — 122,512 18,369 5,987 (933) 27,695 — 61 6 (14,111) — 74 — (7,220) 7,317 12,486 6,390 (6,858) — 5,628 6,390
							18,369
							(933) — 6 — — 7,317
							6,390 —
							6,390

– 31 –

Segment assets and liabilities

As at 30 June 2021

				Supply chain	Unallocated
		Terminal &	Integrated	management	corporate
	Property	related	logistics	and trading	assets/
	business	business	business	business	(liabilities)	Total
	HK$’000	HK$’000	HK$’000	HK$’000	HK$’000	HK$’000
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Segment assets	827,774	734,925	17,044	22,072	6,724	1,608,539
Interest in an associate	10,162	—	—	—	—	10,162
Cash and cash equivalents	946	23,768	10,471	50	1,609	36,844
Deferred tax assets	1,018	2,364	318	905	—	4,605
Total assets	839,900	761,057	27,833	23,027	8,333	1,660,150
Segment liabilities	(61,294)	(99,781)	(30,898)	(20,344)	(70,115)	(282,432)
Bank borrowings	(33,643)	(159,600)	(11,957)	—	—	(205,200)
Other borrowings	—	(133,327)	—	—	(14,200)	(147,527)
Deferred tax liabilities	(99,582)	(1,898)	—	—	—	(101,480)
Income tax payable	(14,788)	(2,559)	(181)	(11)	—	(17,539)
Total liabilities	(209,307)	(397,165)	(43,036)	(20,355)	(84,315)	(754,178)
Net assets/(liabilities)	630,593	363,892	(15,203)	2,672	(75,982)	905,972

– 32 –

2020

Segment revenue and results

For the six-month ended 30 June 2020 (Restated)

Revenue from external customers Inter-segment revenue Reportable segment revenue Reportable segment results Fair value changes on investment properties Interest income Interest expenses Share of loss of an associate Corporate and other unallocated expense Proft/(Loss) before income tax Income tax (expense)/credit Proft/(Loss) for the period	Property business HK$’000 (Unaudited) 5,267 — 5,267 6,355 (10,828) 2 — (295) — (4,766) 821 (3,945)	Terminal & related business HK$’000 (Unaudited) 56,966 1,235 58,201 13,592 — 38 (7,544) — — 6,086 (3,320) 2,766	Continuing operations Supply chain Integrated management logistics and trading business business HK$’000 HK$’000 (Unaudited) (Unaudited) 13,000 — — — 13,000 — (1,315) 412 — — — — (1,840) (75) — — — — (3,155) 337 610 (208) (2,545) 129	Elimination HK$’000 (Unaudited) — (1,235) (1,235) — — — — — — — — —	Unallocated corporate income/ (expense) HK$’000 (Unaudited) — — — — — — (239) — (6,250) (6,489) 1,188 (5,301)	Discontinued operation Construction Total business HK$’000 HK$’000 (Unaudited) (Unaudited) 75,233 — — — 75,233 — 19,044 (1,610) (10,828) — 40 — (9,698) — (295) — (6,250) — (7,987) (1,610) (909) 255 (8,896) (1,355)

– 33 –

Segment assets and liabilities

As at 31 December 2020

Segment assets Interest in an associate Cash and cash equivalents Deferred tax assets Total assets Segment liabilities Bank borrowings Other borrowings Deferred tax liabilities Income tax payable Total liabilities Net assets/(liabilities)	Property business HK$’000 (Audited) 782,677 10,088 1,779 1,139 795,683 (74,122) (751) — (91,056) (16,092) (182,021) 613,662	Terminal & related business HK$’000 (Audited) 933,734 — 22,952 2,552 959,238 (163,107) (194,087) (163,559) (4,056) (9,793) (534,602) 424,636	Integrated logistics business HK$’000 (Audited) 19,472 — 5,081 434 24,987 (23,643) (42,897) — — (242) (66,782) (41,795)	Supply chain management and trading business HK$’000 (Audited) 16,015 — 79 795 16,889 (12,223) — — — (11) (12,234) 4,655	Construction business HK$’000 (Audited) 46,603 — 5,899 — 52,502 (51,922) — — — (1,885) (53,807) (1,305)	Unallocated corporate assets/ (liabilities) HK$’000 (Audited) 18,537 — 2,390 — 20,927 (88,475) — (10,000) — — (98,475) (77,548)	Total HK$’000 (Audited) 1,817,038 10,088 38,180 4,920
							1,870,226
							(413,492) (237,735) (173,559) (95,112) (28,023)
							(947,921)
							922,305

4. OTHER INCOME

Continuing operations Rental income Net foreign exchange gains Sundry income Sales of scrap materials Government subsidies_(note)_	Six-month ended 30 June 2021 2020 HK$’000 HK$’000 (Unaudited) (Unaudited) 319 292 — 30 504 2,523 59 32 650 1,360 1,532 4,237	Six-month ended 30 June 2021 2020 HK$’000 HK$’000 (Unaudited) (Unaudited) 319 292 — 30 504 2,523 59 32 650 1,360 1,532 4,237
		4,237

Note: Government subsidies mainly relates to the subsidies granted by the government in respect of operating and development activities and to provide financial support to the Group’s subsidiaries which are either unconditional grants or grants with conditions having been satisfied.

– 34 –

5. INCOME TAX EXPENSE

Continuing operations Current tax — Hong Kong profts tax — PRC enterprise income tax Deferred tax Origination of temporary difference	Six-month ended 30 June 2021 2020 HK$’000 HK$’000 (Unaudited) (Unaudited) (Restated) — — 38 3,620 38 3,620 6,820 (2,711) 6,858 909

No provision for Hong Kong profits tax has been provided during the six-month periods ended 30 June 2021 and 2020 as the Company and its subsidiaries, which are subject to Hong Kong profits tax, incurred a loss for taxation purpose.

The Group’s PRC subsidiaries are subject to the PRC enterprise income tax at the standard rate of 25% (2020: 25%) on the estimated assessable profits.

In accordance with the relevant income tax laws applicable to entities in the PRC engaging in public infrastructure projects and upon approval by the tax bureau, Shayang Guoli and Zhongxiang City Port Development Co., Limited (鍾祥市中基港口發展有限公司, “ Zhongxiang City Port Co. ”) are entitled to exemption from PRC enterprise income tax for three years (the “ 3-Year Exemption Entitlement ”) and a 50% reduction for three years thereafter (the “ 3-Year 50% Tax Reduction Entitlement ”). The 3-Year Exemption Entitlement for Shayang Guoli, which commenced on 1 January 2016, ended on 31 December 2018 irrespective of whether Shayang Guoli was profit-making during this period and the 3-Year 50% Tax Reduction Entitlement commenced from 1 January 2019 to 31 December 2021 and tax payable is charged at 12.5%. The 3-Year Exemption Entitlement for Zhongxiang City Port Co., which commenced on 1 January 2017, ended on 31 December 2019 irrespective of whether Zhongxiang City Port Co. was profit-making during this period and the 3-Year 50% Tax Reduction Entitlement was commenced from 1 January 2020 to 31 December 2022 and tax payable is charged at 12.5%.

– 35 –

According to relevant laws and regulations in the PRC, the Group’s subsidiary, namely Wuhan Yangluo Logistic Company Limited (武漢陽邏港物流有限公司, “ Yangluo Logistic ”) is qualified as small and low-profit enterprise and is entitled to enterprise income tax rate of 5% during the six-month periods ended 30 June 2021 and 2020.

6. EARNING/(LOSS) PER SHARE

(a) Basic earning/(loss) per share

The calculation of the basic earning/(loss) per share attributable to owners of the Company is based on the following data:

Earning/(Loss) Proft/(Loss) for the period attributable to owners of the Company — Continuing operations — Discontinued operation Number of shares Weighted average number of ordinary shares outstanding for basic earning per share Basic earning/(loss) per share (HK cents) — Continuing operations — Discontinued operation	Six-month ended 30 June 2021 2020 HK$’000 HK$’000 (Unaudited) (Unaudited) (Restated) 7,352 (6,796) 6,390 (1,355) 13,742 (8,151) 1,725,066,689 1,725,066,689 0.43 (0.39) 0.37 (0.08) 0.80 (0.47)

(b) Diluted earning/(loss) per share

There are no dilutive potential ordinary shares in issue for the six-month periods ended 30 June 2021 and 2020. The diluted earning/(loss) per share are equal to the basic earning/(loss) per share.

7. DIVIDEND

The directors do not recommend the payment of a dividend for the six-month period ended 30 June 2021 (2020: nil).

– 36 –

8. INVESTMENT PROPERTIES

Changes to the carrying amounts presented in the condensed consolidated statement of financial position can be summarised as follows:

Opening net carrying amount Additions_(note)_ Change in fair value of investment properties recognised in proft or loss Exchange realignment Closing net carrying amount	Six-month ended Year ended 30 June 2021 31 December 2020 HK$’000 HK$’000 (Unaudited) (Audited) 768,298 676,878 25 1,516 27,695 44,740 13,022 45,164 809,040 768,298	Six-month ended Year ended 30 June 2021 31 December 2020 HK$’000 HK$’000 (Unaudited) (Audited) 768,298 676,878 25 1,516 27,695 44,740 13,022 45,164 809,040 768,298
		768,298

Note: The additions mainly represent the cost of construction during the six-month ended 30 June 2021 and the year ended 31 December 2020.

9. TRADE AND OTHER RECEIVABLES

Note Trade and bills receivables Trade receivables due from third parties Bills receivables Less: ECL allowance of trade receivables (a) Other receivables Deposits, prepayment and other receivables Prepayments to suppliers Value-added tax receivables	As at As at 30 June 2021 31 December 2020 HK$’000 HK$’000 (Unaudited) (Audited) 64,555 69,916 2,424 3,587 66,979 73,503 (12,217) (12,874) 54,762 60,629 62,952 65,845 17,802 10,637 6,726 430 87,480 76,912 142,242 137,541	As at As at 30 June 2021 31 December 2020 HK$’000 HK$’000 (Unaudited) (Audited) 64,555 69,916 2,424 3,587 66,979 73,503 (12,217) (12,874) 54,762 60,629 62,952 65,845 17,802 10,637 6,726 430 87,480 76,912 142,242 137,541
		73,503 (12,874)
		60,629
		65,845 10,637 430
		76,912
		137,541

– 37 –

Note:

(a) Trade and bills receivables

Management of the Group consider that the fair values of the trade and bills receivables which are expected to be recovered within one year are not materially different from their carrying amounts because these balances have short maturity periods on their inception.

The Group allows a credit period of 0 days to 90 days to its trade customers. The following is the ageing analysis of the trade and bills receivables, net of ECL allowance, based on the invoice date or transaction date:

0 — 30 days 31 — 60 days 61 — 90 days Over 90 days	As at As at 30 June 2021 31 December 2020 HK$’000 HK$’000 (Unaudited) (Audited) 13,227 18,185 11,689 10,220 9,764 6,399 20,082 25,825 54,762 60,629	As at As at 30 June 2021 31 December 2020 HK$’000 HK$’000 (Unaudited) (Audited) 13,227 18,185 11,689 10,220 9,764 6,399 20,082 25,825 54,762 60,629
		60,629

10. GOVERNMENT SUBSIDY RECEIVABLES

The amounts represent subsidies receivables from the Wuhan Municipal government by certain of the subsidiaries of the Company as at 30 June 2021 and 31 December 2020.

– 38 –

11. TRADE AND OTHER PAYABLES

Trade payables Other payables — Payables to subcontractors — Deferred government subsidies — Accruals and sundry payables — Receipts in advance Less: Deferred government subsidies included in non-current other payables	As at As at 30 June 2021 31 December 2020 HK$’000 HK$’000 (Unaudited) (Audited) 18,651 38,961 85,540 141,558 3,735 3,756 97,329 98,542 18,426 11,851 205,030 255,707 223,681 294,668 (3,564) (3,588) 220,117 291,080	As at As at 30 June 2021 31 December 2020 HK$’000 HK$’000 (Unaudited) (Audited) 18,651 38,961 85,540 141,558 3,735 3,756 97,329 98,542 18,426 11,851 205,030 255,707 223,681 294,668 (3,564) (3,588) 220,117 291,080
		141,558 3,756 98,542 11,851
		255,707
		294,668
		(3,588)
		291,080

The average credit period granted by the suppliers is 90 days. The following is the ageing analysis of the Group’s trade payables based on the invoice/incurred date:

0-30 days 31-60 days 61-90 days Over 90 days	As at As at 30 June 2021 31 December 2020 HK$’000 HK$’000 (Unaudited) (Audited) 4,347 25,702 4,572 2,018 2,611 1,807 7,121 9,434 18,651 38,961	As at As at 30 June 2021 31 December 2020 HK$’000 HK$’000 (Unaudited) (Audited) 4,347 25,702 4,572 2,018 2,611 1,807 7,121 9,434 18,651 38,961
		38,961

– 39 –

12. DISCONTINUED OPERATION

On 21 May 2021, the Group entered into a disposal agreement with Wuhan Hongcheng to dispose its entire equity interests of Zhongji Tongshang Construction for a consideration of RMB46,800,000 (equivalent to HK$56,200,000) which represents the entire construction business segment of the Group. The disposal was completed in June 2021.

The results of Zhongji Tongshang Construction during the period was presented as discontinued operation, comparative figures have been restated.

(a) Results of discontinued operation

Revenue Cost of services rendered and goods sold Gross proft General and administrative expenses Gain on disposal of discontinued operation Interest income Proft/(Loss) before income tax Income tax credit Proft/(Loss) for the period	Six-month ended 30 June 2021 2020 HK$’000 HK$’000 (Unaudited) (Unaudited) 18,369 — (17,707) — 662 — (1,595) (1,610) 7,317 — 6 — 6,390 (1,610) — 255 6,390 (1,355)

– 40 –

(b) Analysis of cash flows of discontinued operation

		Six-month ended 30 June	Six-month ended 30 June	Six-month ended 30 June
		2021		2020
		HK$’000		HK$’000
		(Unaudited)		(Unaudited)
	Net cash (used in)/generated from operating activities	(3,360)		102
	Net cash generated form investing activities	6		—
	Net cash used in fnancing activities	—		—
	Net cash (used in)/generated from discontinued operation	(3,354)		102
(c)	Analysis of assets and liabilities of discontinued operation as at the date of completion
				HK$’000
				(Unaudited)
	Property, plant and equipment			133
	Goodwill			1,071
	Trade and other receivables			33,955
	Contract assets			30,422
	Amounts due from the Group companies			57,600
	Cash and cash equivalents			1,974
	Trade and other payables			(70,843)
	Tax payable			(1,829)
	Net assets disposed of			52,483
	Gain on disposal of discontinued operation
	Consideration received in cash			8,154
	Consideration settled through offset of amount due by the Group upon disposal			48,000
	Net assets disposed of			(52,483)
	Release of reserve upon disposal			3,646
	Gain on disposal			7,317
	Net cash infow arising from the disposal
	Consideration received in cash			8,154
	Cash and cash equivalents disposed of			(1,974)
	Net cash infow			6,180

– 41 –

13. DISPOSAL OF SUBSIDIARIES

Other than disclosed in note 12, during the six-month ended 30 June 2021, the Group also disposed of its entire equity interests in the following subsidiaries:

(a) Shayang Guoli

During the six-month period ended 30 June 2021, the Group entered into a disposal agreement with Shayang Xingang to dispose its entire equity interests of Shayang Guoli for a consideration of approximately RMB47,148,000 (equivalent to approximately HK$56,577,000). The disposal was completed in March 2021.

(b) Zhongji Tongshang Construction (Wuhan)

During the six-month period ended 30 June 2021, the Group entered into a disposal agreement with Wuhan Lingqiaojia Trading to dispose its entire equity interests of Zhongji Tongshang Construction (Wuhan) for a consideration of approximately RMB1,371,000 (equivalent to approximately HK$1,645,000). The disposal was completed in June 2021.

(c) Zhongji Tongshang Yuanlin

During the six-month period ended 30 June 2021, the Group entered into a disposal agreement with Wuhan Minfudong Construction to dispose its entire equity interests of Zhongji Tongshang Yuanlin for a consideration of approximately RMB3,000 (equivalent to approximately HK$4,000). The disposal was completed in June 2021.

Summary of net assets of subsidiaries disposal of as at the date of completion

Property, plant and equipment Construction in progress Intangible assets Deferred tax assets Trade and other receivables Amounts due from the Group companies Government subsidy receivables Cash and cash equivalents Trade and other payables Amounts due to the Group companies Amount due to a non-controlling interest Deferred tax liabilities Net assets disposed of	Shayang Guoli HK$’000 (Unaudited) 152,455 65,504 8,802 465 10,631 880 3,640 3,343 (53,160) (32,174) (60,858) (2,197) 97,331	Zhongji Tongshang Construction (Wuhan) HK$’000 (Unaudited) 39 — — — 45,858 13,867 — 41 (49,363) (8,931) — — 1,511	Zhongji Tongshang Yuanlin HK$’000 (Unaudited) — — — — 5,050 6,000 — — (5,045) — — — 6,005

– 42 –

Loss on disposal of subsidiaries Consideration received and receivable Net assets disposed of Waiver of amount due from/(to) the Group upon disposal Non-controlling interests Release of reserve upon disposal Gain/(loss) on disposal Net cash infow arising from the disposal of subsidiaries Consideration received in cash Cash and cash equivalents disposed of Net cash infow 14. SHARE CAPITAL As at 30 Number of shares (Unaudited) Authorised: Ordinary shares of HK$0.1 each 2,000,000,000 Issued and fully paid: Ordinary shares of HK$0.1 each 1,725,066,689	Shayang Guoli HK$’000 (Unaudited) 56,577 (97,331) (6,583) 40,773 (20) (6,584) 56,577 (3,343) 53,234 June 2021 HK$’000 (Unaudited) 200,000 172,507	Zhongji Tongshang Zhongji Construction Tongshang (Wuhan) Yuanlin HK$’000 HK$’000 (Unaudited) (Unaudited) 1,645 4 (1,511) (6,005) — 6,000 — — 363 100 497 99 1,645 4 (41) — 1,604 4 As at 31 December 2020 Number of shares HK$’000 (Audited) (Audited) 2,000,000,000 200,000 1,725,066,689 172,507

There was no movement in the Company’s share capital during the six-month ended 30 June 2021 and the year ended 31 December 2020.

– 43 –

DIRECTOR’S RIGHT TO ACQUIRE SHARES OR DEBENTURES

During the six months ended 30 June 2021, none of the Directors was granted any options to subscribe for the Shares.

FINANCIAL RESOURCES AND LIQUIDITY

The Group funded its operations and capital expenditure with internal financial resources, shareholder loans, long-term and short-term bank and other borrowings.

As at 30 June 2021, the Group had total outstanding interest-bearing borrowings of HK$346.53 million (31 December 2020: HK$456.49 million). The Group also had total cash and cash equivalents of HK$36.84 million (31 December 2020: HK$38.18 million) and consolidated net assets of HK$905.97 million (31 December 2020: HK$922.31 million).

As at 30 June 2021, the Group’s net gearing ratio was 0.4 times (31 December 2020: 0.5 times). The calculation of the gearing ratio was based on the total interest-bearing borrowings net of cash and cash equivalents over equity attributable to owners of the Company.

As at 30 June 2021, the Group’s net current liabilities was HK$207.34 million (31 December 2020: HK$384.15 million), and current assets was HK$225.82 million (31 December 2020: HK$250.48 million) and current liabilities of HK$433.16 million (31 December 2020: HK$634.63 million), representing a current ratio of 0.5 times (31 December 2020: 0.4 times).

EXCHANGE RATE RISK

The Group operates in the PRC and its principal activities are mainly transacted in RMB. Therefore, the Directors consider that the Group had no significant foreign currency risk during the six months ended 30 June 2021.

SIGNIFICANT INVESTMENTS

Save as disclosed in this announcement, the Group did not hold any other significant investment as at 30 June 2021.

– 44 –

MATERIAL ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES AND AFFILIATED COMPANIES

Disposal of 60% equity interests in Shayang Guoli

On 1 March 2021, CIG Wuhan Multipurpose, an indirect wholly-owned subsidiary of the Company, entered into the disposal agreement with Shayang Xingang, an organisation under the county government of Shayang County of Hubei Province of the PRC in relation to the Shayang Guoli Disposal.

Disposal of 100% equity interests in Zhongji Tongshang Construction

On 21 May 2021, Tongshang Enterprise Investment Group Company Limited, an indirect wholly-owned subsidiary of the Company, entered into the disposal agreement with Wuhan Hongcheng, a company established in the PRC with limited liability, in relation to the Zhongji Tongshang Construction Disposal. In June 2021, Zhongji Tongshang Construction was disposed and ceased to be an indirectly wholly-owned subsidiary of the Company. The Group discontinued its operation in the provision of construction services.

Disposal of 100% equity interests in Zhongji Tongshang Yuanlin

On 21 May 2021, Tongshang Enterprise Investment Group Company Limited, an indirect wholly-owned subsidiary of the Company, entered into the disposal agreement with Wuhan Minfudong Construction, a company established in the PRC with limited liability in relation to the Zhongji Tongshang Yuanlin Disposal.

Disposal of 100% equity interests in Zhongji Tongshang Construction (Wuhan)

On 21 May 2021, Tongshang Enterprise Investment Group Company Limited, an indirect wholly-owned subsidiary of the Company, entered into the disposal agreement with Wuhan Lingqiaojia, a company established in the PRC with limited liability, in relation to the Zhongji Tongshang Construction (Wuhan) Disposal.

Further details of the disposals of subsidiaries are set out in “OTHER HIGHLIGHTS” in this announcement.

Save as disclosed above, the Group did not have any material acquisitions or disposals of subsidiaries and associates during the six months ended 30 June 2021.

– 45 –

CAPITAL COMMITMENTS

As at 30 June 2021, the Group had capital commitments in respect of construction of port facilities contracted for but not provided for amounting to HK$75.60 million (31 December 2020: HK$154.68 million).

CONTINGENT LIABILITIES

As at 30 June 2021, the Group had no material contingent liabilities (31 December 2020: Nil).

PLEDGE OF ASSETS

As at 30 June 2021, the Group has pledged the equity interests of certain subsidiaries and certain of its port facilities and terminal equipment, land use rights, investment properties and restricted deposits with carrying amount of approximately HK$329.69 million (31 December 2020: HK$352.14 million), HK$19.39 million (31 December 2020: HK$19.33 million), HK$464.10 million (31 December 2020: HK$507.85 million) and HK$11.88 million (31 December 2020: HK$11.68 million) respectively, to secure bank and other borrowings granted to the Group.

CAPITAL STRUCTURE

As at 30 June 2021, the Group’s total equity amounted to HK$905.97 million (31 December 2020: HK$922.31 million).

EMPLOYEE INFORMATION

As at 30 June 2021, the Group had employed 405 employees (31 December 2020: 466 full-time employees). The Group participates in retirement insurance, medicare, unemployment insurance and housing funds according to the applicable laws and regulations of the PRC for its employees in the PRC and makes contributions to the Mandatory Provident Fund Scheme of Hong Kong and medical benefit for its employees in Hong Kong. The Group remunerates its employees in accordance with their work performance and experience. The Company has also adopted a share option scheme to recognise and acknowledge the contributions of eligible employees and directors of the Company or its subsidiaries. Further details of the share option scheme will be set out in the interim report of the Company.

– 46 –

FUTURE PLANS FOR MATERIAL INVESTMENTS OR CAPITAL ASSETS

There were no material investments or capital assets up to the date of this announcement. The Group will continue to look for suitable opportunities for investments or acquisition of material capital assets to enhance its profitability in the ordinary course of its business.

INTERIM DIVIDEND

The Board has resolved not to declare any interim dividend for the six months ended 30 June 2021.

PURCHASE, REDEMPTION OR SALE OF LISTED SECURITIES

During the six months ended 30 June 2021, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s shares.

COMPLIANCE WITH CODE ON CORPORATE GOVERNANCE PRACTICE

The Company has been in compliance with the code provisions as set out in the Corporate Governance Code (“ CG Code ”) in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) during the six months ended 30 June 2021.

COMPLIANCE WITH MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS

The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (“ Model Code ”) as set out in Appendix 10 to the Listing Rules as the code for dealing in securities of the Company by the Directors.

Specific enquiry has been made to all Directors, who have confirmed that, during the six months ended 30 June 2021, each of them was in compliance with the required standard as set out in the Model Code for dealing in securities of the Company.

REVIEW BY THE AUDIT COMMITTEE

The Audit Committee has been established in compliance with Rules 3.21 and 3.22 of the Listing Rules with written terms of reference in compliance with the CG Code. The primary responsibilities of the Audit Committee are to review and monitor the financial reporting and internal control and risk management principles of the Company and to assist the Board to fulfill its responsibilities over audit. The condensed consolidated results of the Group for the six months ended 30 June 2021 is unaudited and have not been reviewed by external auditors but have been reviewed by the Audit Committee. The Audit Committee has reviewed and confirmed the accounting principles and practices adopted by the Group and discussed the auditing, internal control, risk management and financial reporting matters.

– 47 –

The Audit Committee consists of one non-executive Director: Mr. Xia Yu and three independent nonexecutive Directors: Mr. Lee Kang Bor, Thomas, Dr. Mao Zhenhua and Mr. Wong Wai Keung, Frederick. Mr. Lee Kang Bor, Thomas serves as the chairman of the Audit Committee.

By order of the Board China Infrastructure & Logistics Group Ltd. Yan Zhi Co-Chairman

Hong Kong, 27 August 2021

As at the date of this announcement, the Board comprises three executive Directors, namely Mr. Peng Chi, Mr. Xie Bingmu and Mr. Zhang Jiwei, two non-executive Directors namely Mr. Yan Zhi and Mr. Xia Yu and three independent non-executive Directors namely Mr. Lee Kang Bor, Thomas, Dr. Mao Zhenhua and Mr. Wong Wai Keung, Frederick.

• For identification purpose only

– 48 –