Earnings release
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1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. (Incorporated in the British Virgin Islands and continued into Bermuda as an exempted company with limited liability) Stock Code 636 RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 The Board is pleased to announce the unaudited interim results of the Group for the six months ended 30 June 2026, together with comparative figures for the six months ended 30 June 2025. GROUP’S FINANCIAL HIGHLIGHTS AND DIVIDEND • Revenue grew by 10% year-on-year to HK$29,851 million (2025 1H: HK$27,211 million). • Core operating profit dropped by 8% to HK$1,236 million (2025 1H: HK$1,348 million). • Core net profit increased by 2% year-on-year to HK $695 million (2025 1H: HK$681 million). • Profit attributable to the Shareholders achieved a 4% growth in 2026 1H, amounted to HK$674 million (2025 1H: HK$648 million). • IL business recorded a segment profit of HK $665 million (2025 1H: HK$713 million), which represents a drop of 7%. • IFF business record ed a segment profit of HK$855 million (2025 1H: HK$919 million), which represents a drop of 7%. • Interim dividend of 12 HK cents per Share to be payable on or around Friday, 25 September 2026.
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2 CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT For the six months ended 30 June 2026 Unaudited Unaudited Note 2026 2025 HK$’000 HK$’000 Revenue 2 29,850,957 27,211,248 Direct operating expenses 3 (27,084,322) (24,277,775) Gross profit 2,766,635 2,933,473 Other income and net gains 60,636 76,889 Administrative expenses 3 (1,530,463) (1,596,588) Operating profit before fair value change of investment properties 1,296,808 1,413,774 Change in fair value of investment properties (28,515) (37,580) Operating profit 1,268,293 1,376,194 Finance expenses 4 (221,207) (267,322) Share of results of associates and a joint venture 57,838 29,624 Profit before taxation 1,104,924 1,138,496 Taxation 5 (274,228) (317,640) Profit for the period 830,696 820,856 Profit attributable to: Company’s shareholders 674,624 648,208 Non-controlling interests 156,072 167,782 Holders of perpetual convertible securities – 4,866 830,696 820,856 Earnings per share 7 – Basic HK$0.37 HK$0.36 – Diluted HK$0.37 HK$0.36
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3 CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME For the six months ended 30 June 2026 Unaudited Unaudited 2026 2025 HK$’000 HK$’000 Profit for the period 830,696 820,856 Other comprehensive income: Items that will not be reclassified subsequently to profit or loss Fair value change on financial assets at fair value through other comprehensive income 7,572 1,966 Fair value gain recognised upon the transfer from property, plant and equipment to investment properties (net of tax) – 67,533 Item that may be reclassified to profit or loss Net translation differences on foreign operations 49,994 974,056 Other comprehensive income for the period (net of tax) 57,566 1,043,555 Total comprehensive income for the period 888,262 1,864,411 Total comprehensive income attributable to: Company’s shareholders 651,003 1,588,334 Non-controlling interests 237,259 271,211 Holders of perpetual convertible securities – 4,866 888,262 1,864,411
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4 CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION Unaudited Audited Note As at 30 June 2026 As at 31 December 2025 HK$’000 HK$’000 ASSETS AND LIABILITIES Non-current assets Intangible assets 5,608,686 5,647,143 Investment properties 3,015,283 2,984,430 Property, plant and equipment 7,205,944 7,242,806 Right-of-use assets 2,938,937 3,105,697 Associates and a joint venture 1,411,592 1,497,844 Financial assets at fair value through other comprehensive income 230,331 357,768 Investment in convertible bonds 4,479 4,536 Other non-current assets 171,950 165,053 Deferred taxation 271,141 215,247 20,858,343 21,220,524 Current assets Financial assets at fair value through profit or loss 475 496 Inventories 424,440 348,013 Accounts receivable, prepayments and deposits 8 17,803,601 15,572,179 Tax recoverable 147,149 151,053 Amounts due from fellow subsidiaries 12,951 64,088 Amounts due from related companies 2,610 1,112 Amounts due from associates 92,496 9,803 Restricted and pledged bank deposits 94,142 83,839 Cash at bank and in hand 5,959,326 6,339,675 24,537,190 22,570,258 Current liabilities Lease liabilities 1,078,692 1,061,874 Accounts payable, deposits received and accrued charges 9 12,181,826 10,833,990 Supplier financing payables 174,754 126,225 Amounts due to fellow subsidiaries 71,142 126,709 Amounts due to related companies 50,021 142,401 Taxation 355,440 350,651 Short-term bank loans and current portion of long-term bank loans 10 2,917,653 3,327,627 Bank overdrafts 10 14,460 18,081 16,843,988 15,987,558
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5 CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION (CONTINUED) Unaudited Audited Note As at 30 June 2026 As at 31 December 2025 HK$’000 HK$’000 Non-current liabilities Loans from non-controlling interests 200,853 198,547 Long-term bank loans 10 5,886,453 5,496,812 Lease liabilities 1,241,074 1,426,473 Deferred taxation 402,251 419,515 Retirement benefit obligations 44,822 41,945 Other non-current liabilities 9 59,336 60,634 7,834,789 7,643,926 ASSETS LESS LIABILITIES 20,716,756 20,159,298 EQUITY Capital and reserves attributable to the Company’s shareholders Share capital 903,715 903,715 Share premium 4,074,218 4,074,218 Shares held for share award scheme (34,000) (37,221) Retained profits and other reserves 13,135,196 12,777,874 18,079,129 17,718,586 Non-controlling interests 2,637,627 2,440,712 TOTAL EQUITY 20,716,756 20,159,298
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6 NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1 BASIS OF PREPARATION AND ACCOUNTING POLICIES The Company is an investment holding company and its subsidiaries are principally engaged in the provision of logistics and freight forwarding services. The Company’s shares are listed on The Stock Exchange of Hong Kong Limited. Shenzhen Mingde Holding Development Co., Ltd., a private company incorporated in the PRC, is the ultimate holding company. These unaudited condensed consolidated interim financial information are prepared in accordance with HKAS 34 ‘Interim Financial Reporting’ issued by the HKICPA and the disclosure requirements of Appendix D2 to the Listing Rules. These unaudited condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2025, which have been prepared in accordance with HKFRS Accounting Standards as issued by the HKICPA. The accounting policies used in the preparation of these condensed consolidated interim financial information are consistent with those used in the annual consolidated financial statements for the year ended 31 December 2025. (I) ADOPTION OF AMENDMENTS TO EXISTING STANDARDS The following amendments to existing standards have been published that are effective for the Group’s accounting period of the Group beginning on 1 January 2026: Amendments to HKFRS 7 and HKFRS 9, ‘Classification and measurement of Financial Instruments’ Annual Improvements to HKFRS Accounting Standards – Volume 11 Amendments to HKFRS 7 and HKFRS 9, ‘Contracts Referencing Nature – dependent Electricity’ Amendments to HKFRS 7, HKFRS 18, HKAS 1, HKAS 8, HKAS 36 and HKAS 37, ‘Disclosures about Uncertainties in the Financial Statements’ In the current interim period, the Group has applied, for the first time, the above amendments to existing standards as issued by the HKICPA. The adoption of the above amendments to existing standards had no material impact on the Group’s accounting policies and did not require retrospective adjustments.
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7 (II) N E W STANDARDS, AMENDMENTS TO EXISTING STANDARDS AND INTERPRETATION WHICH ARE NOT YET EFFECTIVE The Group has not yet adopted the following new standards, amendments to existing standards and interpretation that have been issued by the HKICPA but are not yet effective. HKFRS 18, ‘Presentation and Disclosure in Financial Statements’ 1 HKFRS 19, ‘Subsidiaries without Public Accountability: Disclosures and its amendments’ 1 Amendments to HKAS 21, ‘Translation to a Hyperinflationary Presentation Currency’ 1 Amendments to Hong Kong Interpretation 5, ‘Presentation of financial statements – Classification by the borrower of a term loan that contains a repayment on demand clause’ 1 Amendments to HKFRS 10 and HKAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ 2 1 Effective for annual periods beginning on or after 1 January 2027 2 Effective date to be determined HKFRS 18 will replace HKAS 1, ‘Presentation of financial statements’, introducing new requirements that will help to achieve comparability of the financial performance of similar entities and provide more relevant information and transparency to users. Even though HKFRS 18 will not impact the recognition or measurement of items in the consolidated financial statements, its impacts on presentation and disclosure are expected to be pervasive, in particular those related to the consolidated income statement and providing management-defined performance measures within the consolidated financial statements. Management is currently assessing the detailed implications of applying the new standard on the Group’s consolidated financial statements. The Group will apply the new standard from its mandatory effective date of 1 January 2027. Retrospective application is required, and so the comparative information for the financial year ending 31 December 2026 will be restated in accordance with HKFRS 18. Except for HKFRS 18, none of the above is expected to have a significant effect on the consolidated financial statements of the Group. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings. The preparation of condensed consolidated interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these condensed consolidated interim financial information, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the annual consolidated financial statements for the year ended 31 December 2025 except for the adoption of amendments to existing standards as set out above.
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8 2 PRINCIPAL ACTIVITIES AND SEGMENTAL ANALYSIS OF OPERATIONS An analysis of the Group’s financial results by operating segment and geographical area for the six months ended 30 June 2026, together with comparative figures for the six months ended 30 June 2025 is as follows: Six months ended 30 June Integrated logistics International freight forwarding Elimination Consolidation 2026 2025 2026 2025 2026 2025 2026 2025 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 (restated) (restated) (restated) (restated) Revenue Revenue 7,742,734 7,025,603 22,108,223 20,185,645 – – 29,850,957 27,211,248 Inter-segment revenue 1,489,360 716,851 3,960,934 3,157,218 (5,450,294) (3,874,069) – – 9,232,094 7,742,454 26,069,157 23,342,863 (5,450,294) (3,874,069) 29,850,957 27,211,248 Revenue by geographic area Hong Kong 3,920,485 3,122,171 847,339 817,962 (849,907) (376,278) 3,917,917 3,563,855 Chinese Mainland 3,406,640 2,854,460 8,644,073 7,114,550 (2,519,418) (1,899,105) 9,531,295 8,069,905 Asia Pacific 1,904,969 1,765,823 3,092,879 2,784,007 (788,799) (687,845) 4,209,049 3,861,985 Americas – – 7,018,408 6,974,516 (356,879) (355,127) 6,661,529 6,619,389 EMEA – – 6,466,458 5,651,828 (935,291) (555,714) 5,531,167 5,096,114 9,232,094 7,742,454 26,069,157 23,342,863 (5,450,294) (3,874,069) 29,850,957 27,211,248 Segment profit by geographic area Hong Kong 174,023 239,592 19,686 19,823 – – 193,709 259,415 Chinese Mainland 186,119 194,765 366,326 377,901 – – 552,445 572,666 Asia Pacific 305,006 278,933 152,962 168,159 – – 457,968 447,092 Americas – – 143,097 229,063 – – 143,097 229,063 EMEA – – 173,051 124,029 – – 173,051 124,029 665,148 713,290 855,122 918,975 – – 1,520,270 1,632,265 Less: Unallocated administration expenses (284,591) (284,337) Core operating profit 1,235,679 1,347,928 Interest income 61,129 65,846 Finance expenses (221,207) (267,322) Share of results of associates and a joint venture 57,838 29,624 Profit before taxation* 1,133,439 1,176,076 Taxation* (281,533) (327,193) Profit for the period* 851,906 848,883 Non-controlling interests* (156,558) (168,359) Core net profit 695,348 680,524 Change in fair value of investment properties (28,515) (37,580) Deferred tax of change in fair value of investment properties 7,305 9,553 Less: Non-controlling interests’ share of change in fair value of investment properties and its related deferred tax 486 577 Profit attributable to Company’s shareholders and holders of perpetual convertible securities 674,624 653,074 Holders of perpetual convertible securities – (4,866) Profit attributable to Company’s shareholders 674,624 648,208 Depreciation and amortisation 657,040 599,646 259,757 245,216 – – 916,797 844,862 * Excluding the change in fair value of investment properties and its related deferred tax.
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9 Management has determined the operating segments based on the reports reviewed by the executive directors. The executive directors assess the performance of the two principal activities of the Group, namely integrated logistics and international freight forwarding, in each geographical area. Integrated logistics segment derives revenue from provision of logistics services and sales of goods. International freight forwarding segment derives revenue primarily from provision of freight forwarding services. To better align with the Group’s internal management reporting structure, the Group revised its regional classification during the current period. Accordingly, the “Asia” region was renamed “Asia Pacific”, “Oceania” was included within “Asia Pacific”, and certain operations previously included in Asia were reclassified to EMEA. Prior period corresponding segment information has been reclassified to conform to the current period presentation. Segment revenue and profit derived from geographical areas are based on the geographical location of the operation. The executive directors assess the performance of the operating segments by geographical area based on segment profit. The executive directors also assess the performance of the Group based on core operating profit, which is the profit before taxation excluding interest income, finance expenses, share of results of associates and a joint venture and also core net profit, which is the profit attributable to Company’s shareholders before the after-tax effect of change in fair value of investment properties. In the following table, revenue of the Group from contracts with customers is disaggregated by timing of satisfaction of performance obligations. The table also includes a reconciliation to the segment information in respect of revenue of the Group that is disclosed in the operating segment note.
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10 Six months ended 30 June 2026 2025 By operating segment Revenue recognised at a point in time Revenue recognised over time Rental income Total Revenue recognised at a point in time Revenue recognised over time Rental income Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Revenue from contracts with customers Integrated logistics 1,161,063 6,518,288 63,383 7,742,734 823,553 6,137,205 64,845 7,025,603 International freight forwarding – 22,108,223 – 22,108,223 – 20,185,645 – 20,185,645 1,161,063 28,626,511 63,383 29,850,957 823,553 26,322,850 64,845 27,211,248 Six months ended 30 June 2026 2025 By geographical area Revenue recognised at a point in time Revenue recognised over time Rental income Total Revenue recognised at a point in time Revenue recognised over time Rental income Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 (restated) (restated) Revenue from contracts with customers – Hong Kong 943,514 2,974,403 – 3,917,917 781,001 2,782,854 – 3,563,855 – Chinese Mainland 208,913 9,284,626 37,756 9,531,295 33,083 7,996,455 40,367 8,069,905 – Asia Pacific 8,636 4,174,786 25,627 4,209,049 9,469 3,828,038 24,478 3,861,985 – Americas – 6,661,529 – 6,661,529 – 6,619,389 – 6,619,389 – EMEA – 5,531,167 – 5,531,167 – 5,096,114 – 5,096,114 1,161,063 28,626,511 63,383 29,850,957 823,553 26,322,850 64,845 27,211,248 An analysis of the Group’s segment non-current assets by geographical area is as follows: Segment non-current assets # As at 30 June 2026 As at 31 December 2025 HK$’000 HK$’000 (restated) Hong Kong 1,705,222 1,887,210 Chinese Mainland 7,734,766 7,752,709 Asia Pacific 6,427,515 6,458,637 Americas 2,810,051 2,867,143 EMEA 1,674,838 1,677,274 20,352,392 20,642,973 # Other than financial assets at fair value through other comprehensive income, investment in convertible bonds and deferred taxation.
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11 3 EXPENSES BY NATURE Expenses included in direct operating expenses and administrative expenses are analysed as follows: Six months ended 30 June 2026 2025 HK$’000 HK$’000 Business tax and other taxes 9,356 8,576 Cost of goods sold 990,349 676,447 Freight and transportation costs 23,180,662 20,862,992 Depreciation of property, plant and equipment 285,175 279,956 Depreciation of right-of-use assets 564,005 495,943 Amortisation of intangible assets 67,617 68,963 Provision for impairment of receivables 87,673 64,984 Reversal of provision for impairment of receivables (13,624) (33,071) Rental expenses on land and buildings 145,595 241,613 Employee benefit expenses 2,856,058 2,698,145 4 FINANCE EXPENSES Six months ended 30 June 2026 2025 HK$’000 HK$’000 Interest expenses on bank loans, overdrafts and other finance costs 172,289 217,003 Interest expenses on lease liabilities 48,918 50,319 221,207 267,322
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12 5 TAXATION Six months ended 30 June 2026 2025 HK$’000 HK$’000 Hong Kong profits tax – Current 34,510 38,881 – Over provision in prior years – (3) – Deferred (19,830) (12,072) 14,680 26,806 PRC taxation – Current 99,051 99,685 – Under provision in prior years 235 11,618 – Deferred (11,132) (1,940) 88,154 109,363 Overseas taxation – Current 219,547 197,349 – Over provision in prior years (26,041) (110) – Deferred (22,112) (15,768) 171,394 181,471 274,228 317,640 HONG KONG AND OVERSEAS PROFITS TAX Hong Kong profits tax has been provided at the rate of 16.5% (2025: 16.5%) for the six months ended 30 June 2026 on the estimated assessable profit for the period. Income tax on the overseas profits has been calculated on the estimated assessable profit for the period at the rates of taxation prevailing in the overseas countries in which the Group operates. PRC ENTERPRISE INCOME TAX PRC enterprise income tax has been provided at the rate of 25% (2025: 25%) on the estimated assessable profit for the period. OECD PILLAR TWO MODEL RULES The Group is within the scope of the OECD Pillar Two Model Rules. In Hong Kong, the Inland Revenue (Amendment) (Minimum Tax for Multinational Enterprise Groups) Ordinance 2025 was enacted on 6 June 2025 to implement the Global Anti-Base Erosion (“GloBE”) rules, which comprises the income inclusion rule (“IIR”) and undertaxed profits rule (“UTPR”), as well as the Hong Kong minimum top-up tax (“HKMTT”). IIR and HKMTT apply to a fiscal year beginning on or after 1 January 2025, while the UTPR will take effect from a date to be specified by the Secretary for Financial Services and the Treasury at a later stage. For most of the jurisdiction where the Group has operations, the Pillar Two legislation had become effective on or before 1 January 2025. Under the Pillar Two legislation, the Group is liable to pay a top-up tax for difference between its GloBE effective tax rate in each jurisdiction and the 15% minimum rate. The Group’s assessment indicates that the quantitative impact of the Pillar Two legislation is not material to the Group.
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13 WITHHOLDING TAX ON DISTRIBUTED/UNDISTRIBUTED PROFITS Withholding tax in the Group’s subsidiaries, associates and a joint venture is levied on the undistributed earnings for the period at the rates of taxation prevailing in the Chinese Mainland and overseas countries. Withholding tax on undistributed earnings of the Group’s certain subsidiaries are not provided as the Directors consider that the timing of reversal of the related temporary differences can be controlled and the temporary differences will not reverse in the foreseeable future. 6 DIVIDENDS The Directors have declared an interim dividend of 12 HK cents per share for the six months ended 30 June 2026 (for the six months ended 30 June 2025: an interim dividend of 11 HK cents), which is payable on or around Friday, 25 September 2026 to shareholders whose names appear on the Registers of Members on Friday, 11 September 2026. These financial information do not reflect this dividend payable. 7 EARNINGS PER SHARE The calculation of the basic and diluted earnings per share is as follows: BASIC Six months ended 30 June 2026 2025 Adjusted weighted average number of ordinary shares in issue (’000) 1,802,062 1,801,881 Profit attributable to the Company’s shareholders (HK$’000) 674,624 648,208 Basic earnings per share (HK$) 0.37 0.36
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14 DILUTED Six months ended 30 June 2026 2025 Adjusted weighted average number of ordinary shares in issue (’000) 1,802,062 1,801,881 Adjustment for share awards (’000) 66 311 Weighted average number of shares for the purpose of calculating diluted earnings per share (’000) 1,802,128 1,802,192 Profit attributable to the Company’s shareholders (HK$’000) 674,624 648,208 Diluted earnings per share (HK$) 0.37 0.36 8 ACCOUNTS RECEIVABLE, PREPAYMENTS AND DEPOSITS Included in accounts receivable, prepayments and deposits are mainly accounts receivable. The Group has various credit policies for different business operations depending on the requirements of the markets and businesses. The ageing analysis of accounts receivable based on the date of the invoice and net of provision for impairment is as follows: As at 30 June 2026 As at 31 December 2025 HK$’000 HK$’000 Below 1 month 8,095,698 6,711,963 Between 1 month and 3 months 3,249,895 2,993,521 Over 3 months 1,276,944 1,004,998 Total accounts receivable, net 12,622,537 10,710,482 Prepayments, deposits and other receivables 5,181,064 4,861,697 17,803,601 15,572,179
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15 9 ACCOUNTS PAYABLE, DEPOSITS RECEIVED AND ACCRUED CHARGES Included in accounts payable, deposits received and accrued charges are mainly accounts payable and accruals. The ageing analysis of accounts payable based on the date of the invoice is as follows: As at 30 June 2026 As at 31 December 2025 HK$’000 HK$’000 Below 1 month 5,161,571 3,880,277 Between 1 month and 3 months 1,255,644 1,106,075 Over 3 months 719,953 577,378 Total accounts payable 7,137,168 5,563,730 Deposits received, accrued charges and other payables 5,103,994 5,330,894 12,241,162 10,894,624 Less: Non-current portion of the consideration payable for business combination (59,336) (60,634) 12,181,826 10,833,990 10 BANK LOANS AND BANK OVERDRAFT As at 30 June 2026 As at 31 December 2025 HK$’000 HK$’000 Bank loans: Non-current – unsecured 5,882,492 5,491,330 – secured 3,961 5,482 5,886,453 5,496,812 Current – unsecured 2,805,478 3,191,083 – secured 112,175 136,544 2,917,653 3,327,627 Total bank loans 8,804,106 8,824,439 Bank overdrafts: Current – unsecured 11,055 15,667 – secured 3,405 2,414 Total bank overdrafts 14,460 18,081 Total bank loans and bank overdrafts 8,818,566 8,842,520
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16 11 COMMITMENTS As at 30 June 2026, the Group had capital commitments in respect of property, plant and equipment and acquisition of subsidiaries not provided for in these financial information as follows: As at 30 June 2026 As at 31 December 2025 HK$’000 HK$’000 Contracted but not provided for 242,470 502,966 12 PLEDGE OF ASSETS As at 30 June 2026, the Group’s total bank loans of HK$8,804,106,000 (31 December 2025: HK$8,824,439,000) included an aggregate amount of HK$116,136,000 (31 December 2025: HK$142,026,000) which is secured. The Group’s total bank overdrafts of HK $14,460,000 (31 December 2025: HK $18,081,000) included an aggregate amount of HK$3,405,000 (31 December 2025: HK$2,414,000) which are secured. The securities provided for the secured banking facilities available to the Group are as follows: (i) legal charges over certain investment properties, leasehold land and land use rights, freehold land and buildings, warehouse and logistics centres and port facilities with an aggregate net book value of HK$689,056,000 (31 December 2025: HK$716,506,000); (ii) assignments of insurance proceeds of certain properties; and (iii) certain balances of restricted and pledged deposits.
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17 RESULTS OVERVIEW The Group recorded a growth in revenue of 10% to HK$29 ,851 million in 2026 1H (2025 1H: HK$27,211 million). Core operating profit dropped by 8% to HK $1,236 million (2025 1H: HK$1,348 million). Despite the decline in core operating profit, core net profit increased slightly by 2% year-on-year to HK$695 million (2025 1H: HK$681 million) primarily due to more effective management of finance cost and taxes. Profit attributable to the Shareholders achieved a 4% growth in 2026 1H, amounted to HK$674 million (2025 1H: HK$648 million). 2026 1H 2025 1H HK$ million HK$ million Segment profit IL 665 713 -7% IFF 855 919 -7% 1,520 1,632 Unallocated administrative expenses and others (284) (284) Core operating profit 1,236 1,348 -8% Core net profit 695 681 +2% Changes in fair value of investment properties, net of deferred tax (21) (28) Profit attributable to holders of perpetual convertible securities – (5) Profit attributable to the Shareholders 674 648 +4%
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18 MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW MARKET OVERVIEW In the first half of 2026, global trade and supply chains continued to be shaped by geopolitical tensions, tariff uncertainty and uneven economic conditions across major markets. Front-loading activity remained prevalent across key trade lanes, while the Middle East escalation disrupted global air and ocean freight routes, leading to higher fuel costs and volatile freight rates. The “China Plus One” strategy and supply chain diversification continued to drive sourcing and production shifts across Asia, while technology reshoring and continued investment in AI infrastructure supported volume from Asia to the US. Against this backdrop, KLN Group’s consolidated revenue increased by 10% year-on-year to HK$29,851 million, driven by enhanced service offerings and customer-focused solutions resulting in strong customer acquisition across key markets. Core operating profit declined by 8% year- on-year to HK$1,236 million amid market pressures and a competitive landscape. Core net profit rose by 2% year-on-year to HK $695 million, supported by the Group’s disciplined financial management, including treasury optimisation through cash pooling scheme, resulting in lower finance costs, and effective tax management. INTEGRATED LOGISTICS The Group’s IL division recorded a 19% year-on-year increase in revenue (before elimination) during the period, driven by significant new account wins in its two key markets, Hong Kong and the Chinese Mainland. Segment profit declined by 7% primarily due to customer-driven rate reductions, inventory destocking and higher fuel costs. Profitability was also affected by the IL division’s increased investment in talent and commercial capabilities. HONG KONG Revenue (before elimination) in the Hong Kong IL business increased by 26% year-on-year. Growth was driven by approximately 60 new customer wins during the period. The healthcare sector delivered solid growth, supported by additional distributorship contracts, while the construction logistics business began contributing to performanc e. However, soft consumer spending and the partial supply chain relocation by certain retail customers to Southern China continued to affect local business volumes. THE CHINESE MAINLAND The IL business in the Chinese Mainland recorded a 19% year-on-year increase in revenue (before elimination), underpinned by strong business development efforts and the introduction of new service offerings including cold chain and commodity transportation. Growth was further supported by improved activity in high-tech manufacturing and exports. While consumer spending remained soft in the retail and food & beverage sectors, the Group continued to benefit from new business wins and expanded market presence.
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19 REST OF ASIA PACIFIC Revenue (before elimination) in the rest of Asia Pacific IL business increased by 8% year-on-year. Several markets delivered strong growth, including Malaysia, Vietnam and Cambodia, benefitting from the “China Plus One” strategy, supply chain diversification and infrastructure investments. KLN Seaport in Thailand also recorded double-digit growth. However, weaker performance in the Philippines partially offset these gains. INTERNATIONAL FREIGHT FORWARDING The Group’s IFF division recorded a 12% year-on-year increase in revenue (before elimination) during the period, propelled by strong volume growth across air and ocean freight activities. Nevertheless, segment profit was down by 7% due to competitive market pressures. In addition, higher fuel costs could not be fully passed on to customers as the Group placed its priority on maintaining customer relationships. AIR FREIGHT Air freight volumes handled by the IFF division recorded solid mid-teens growth, led by the Chinese Mainland and Europe, with North America recording the strongest growth among major trade lanes. Growth was also supported by the strong performance of the General Sales Agent (GSA) business. KLN Group outperformed the market, with all key trade lanes delivering double- digit growth attributable to new customer acquisitions across most verticals. Demand for AI infrastructure on the Asia-US corridor remained robust during the period. Ezhou Shunjia Aviation Ground Service Co., Ltd., which provides ground handling services for international flights at Ezhou Airport in Central China, contributed HK$212 million in revenue in the first half of 2026. With ground handling volume increasing by 11.8% y ear-on-year to more than 3,500 flights, air freight ancillary services have become an important growth driver for the Group’s IFF business in the Chinese Mainland. Furthermore, it achieved all four IATA CEIV certifications: Pharma, Lithium Batteries, Fresh and Live Animals, underscoring its commitment to the highest global standards in special cargo handling. OCEAN FREIGHT Ocean freight volumes handled by the IFF division posted strong mid-teens growth, underpinned by rising exports from Asia, supply chain diversification and tariff-driven front-loading of shipments. Freight rates remained volatile due to capacity constraints and elevated fuel costs across key trade lanes. The Group remained the global No.1 Trans-Pacific NVOCC on the Asia-US trade lane during the period while growing its presence in Asia-Europe and intra-Asia trades. PROJECT LOGISTICS The KLN Project business recorded revenue of approximately HK $1.9 billion in the first half of 2026, compared with HK $1.7 billion in the corresponding period last year. Revenue growth was driven by the continued execution of the Group’s Engineering, Procurement and Construction (EPC) projects, together with steady growth in its traditional project logistics business serving the energy, power, renewables, construction and industrial sectors. Segment profit also increased year-on-year during the period.
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20 SUSTAINABILITY KLN Group continues to deliver lasting value for its stakeholders, the environment and society by advancing sustainable logistics solutions guided by its principles of Commitment, Action and Transparency. During the period, the Group enhanced its sustainability governance, data management and internal reporting processes in preparation for the new climate disclosure requirements of Stock Exchange. The Group also continued to assess value-chain emissions and climate-related risks to support its long-term transition planning. In supporting low-carbon logistics, KLN Group continued to strategically invest in innovative solutions, actively exploring the adoption of renewable diesel, the promotion of sustainable fuels and investment in future EV charging infrastructure. The Group also advanced its KLN 2.0 strategy by leveraging AI, robotics and automation technologies to enhance operational efficiency, optimise resource utilisation and strengthen ESG management across its global logistics network. The Group’s commitment to technological innovation was also highlighted in Bloomberg Businessweek Chinese Edition as a benchmark for global logistics transformation towards a low- carbon economy. The Group’s commitment to transparency and sustainable business practices was further recognised through its achievement of an MSCI ESG Rating of AAA and the HKQAA Hong Kong Green and Sustainability Contribut ion Awards 2026 – Outstanding ESG Disclosure Contribution Pioneer Excellence Award. OUTLOOK Looking ahead to the second half of 2026, the current operating environment is expected to persist amid ongoing geopolitical tensions, tariff uncertainty and evolving global trade patterns. Supply chain diversification, technology reshoring and continued investment in AI infrastructure are set to support cross-border trade flows and create opportunities, particularly across Asia and North America, while developments in the Middle East, freight rate volatility and fuel price fluctuations may continue to affect logistics costs. The Group will stay focused on supporting customers in adapting to changing supply chain requirements through its diversified network, expanded service offerings and customer-centric solutions. Under KLN 2.0, continued investments in commercial capabilities, digitalisation, technology and network development will strengthen the Group’s growth prospects over the longer term. In the IL business, the commercial pipeline is expected to remain healthy, with multiple new customer implementations scheduled for the second half of the year. New initiatives in recycling logistics and specialised transportation services are expected to contribute to incremental growth. The Group will also continue to drive productivity through warehouse optimisation, automation and AI-enabled applications, while advancing the expansion of its IL capabilities into selected overseas markets, including the US, Europe and Australia.
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21 In the IFF business, the overall market is expected to remain challenging but demand should stay resilient. KLN Group is well positioned to support customers in managing the complexity through alternative solutions, strategic capacity procurement and its diversified trade lane network. While freight rates and transportation costs may remain volatile, the commercial pipeline remains healthy, supported by the Group’s continued investm ents in sales capabilities, strategic account development and customer acquisition initiatives. Overall, the Group remains cautiously optimistic about its growth prospects for the remainder of the year. Leveraging its global network, diversified service portfolio and ongoing KLN 2.0 transformation initiatives, the Group is well positioned to support customers in navigating an increasingly complex operating environment while pursuing sustainable long-term growth. FINANCIAL REVIEW The Group has centralised financing policies which apply to all business units within the network. The policies are reviewed on a periodical basis along with the change in market situation and financial position of the Group. Most of the Group’s assets and liabilities are denominated in different functional currencies of the overseas subsidiaries’ respective countries. The Group generally does not enter into foreign exchange hedges in respect of its long-term equity investments in overseas subsidiaries, associates and a joint venture. For the foreign currency exposure arising from business activities, certain subsidiaries used forward contracts to hedge their foreign exchange exposure from trading transactions during the period, the amount of which was insignificant to the Group. The Group will continue to closely monitor its foreign exchange position and if necessary, hedge its foreign exchange exposure by entering into appropriate hedging instruments. As at 30 June 2026, total foreign currency borrowings amounted to the equivalent of HK$4,752 million (including HK$3,993 million denominated in Renminbi and HK$322 million denominated in Singaporean dollar), which represented approximately 54% of the Group’s total bank loans of HK$8,804 million. Out of the Group’s total bank loans as at 30 June 2026, HK$2,918 million (representing approximately 33%) was repayable within one year, HK$3,250 million (representing approximately 37%) in the second year, HK$2,489 million (representing approximately 28%) in the third to fifth years and HK$147 million (representing approximately 2%) over five years. The Group maintains most of its bank loans on an unsecured basis, with unsecured debt accounting for approximately 99% of total bank loans. In relation to the secured bank loans of HK$116 million as at 30 June 2026, the securities provided for the secured banking facilities available to the Group include legal charges over certain non-current assets with aggregate net book value of HK$689 million, assignments of insurance proceeds of certain properties, and certain balances of restricted and pledged deposits. A majority of the bank loans were borrowed at floating interest rates and were not held for hedging purposes. As at 30 June 2026, the gearing ratio for the Group was 48.8% (31 December 2025: 49.9%). The ratio was calculated as total bank loans and overdrafts, divided by equity attributable to the Shareholders. As at 30 June 2026, the Group had total undrawn bank loan and overdraft facilities of HK$10,979 million which may be used to fund material capital expenditure. The Group will also continue to secure financing as and when the need arises. As at 30 June 2026, the Group had no material contingent liabilities.
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22 STAFF AND REMUNERATION POLICIES As at 30 June 2026, the Group had approximately 18,500 employees. The remuneration to employees includes salaries maintained at competitive levels while bonuses are granted on a discretionary basis. The Group provides training to its staff to enhance technical and product knowledge. The Group’s remuneration policies are formulated based on the performance of individual employees. Other employee benefits include provident fund, insurance, medical, sponsorship for educational or training programmes and share award scheme. CORPORATE GOVERNANCE AND OTHER INFORMATION COMPLIANCE WITH THE CG CODE The Company has applied the principles and code provisions as set out in Part 2 of the CG Code and its corporate governance practices are based on such principles and code provisions. The Directors consider that during the six months ended 30 June 2026, the Company has complied with the code provisions as set out in Part 2 of the CG Code. MODEL CODE FOR SECURITIES TRANSACTIONS The Company has adopted the Model Code. Specific enquiries have been made to all the Directors (including Mr CHO Kin Lun and Mr WONG Siew Loong, the Executive Directors, whose appointments became effective on 21 May 2026) and the Directors have confirmed that they have complied with the Model Code (i) during the six months ended 30 June 2026; or (ii) during the period from their respective appointment dates up to 30 June 2026, as the case may be. The Company's employees, who are likely to be in possession of inside information of the Company, are also subject to the Model Code for securities transactions. No incident of non- compliance of the Model Code by the employees during the reporting period was noted by the Company. PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed securities (including treasury shares) during the six months ended 30 June 2026. REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS The unaudited condensed consolidated interim financial statements have been reviewed by the Company’s independent auditor, PricewaterhouseCoopers, in accordance with the Hong Kong Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” and by the audit and compliance committee of the Company. The review report of the independent auditor will be included in the interim report to be sent to the Shareholders.
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23 EVENTS AFTER THE REPORTING PERIOD References are made to: (i) the 2024 Announcement and the 2024 Circular in relation to, among other things, the existing continuing connected transactions contemplated under the CCT Agreements, as appropriate; (ii) the 2025 Announcement in relation to, among other things, the proposed revision of the annual caps for the financial years ending 31 December 2025, 2026 and 2027 in respect of the continuing connected transactions under the CCT Agreements; and (iii) the 2025 Circular in relation to, among other things, the proposed revision of the annual caps for the financial years ending 31 December 2025, 2026 and 2027 under the 2024 KLN Logistics Services Framework Agreement and the 2024 SF Logistics Services Framework Agreement, which were subsequently approved by the independent Shareholders of the Company at the special general meeting of the Company held on 26 May 2025. The Existing Annual Caps represent the annual caps currently in effect for the financial years ending 31 December 2026 and 2027 under the CCT Agreements. Based on the Group’s historical transaction amounts in the second half of 2025, and the unaudited management accounts of the Company and operational data for the six months ended 30 June 2026, it has come to the attention of the Board that the actual transaction amounts contemplated under the CCT Agreements may exceed the Existing Annual Caps. The transaction amounts under the CCT Agreements are sensitive to fluctuations in freight rates, shipment volumes, route mix, available cargo capacity and customer demand. During the first half of 2026, these factors experienced a higher degree of volatility than anticipated at the time of the previous proposed annual cap revision under the 2025 Announcement and the 2025 Circular, resulting in transaction volumes increasing beyond the assumptions underlying the Existing Annual Caps. In light of the above, and the expected growth in demand from the Group and SFTS Group (as applicable) of the relevant services, the Board anticipates that the Existing Annual Caps for the financial years ending 31 December 2026 and 2027 will not be sufficient to meet the expected transaction amounts under the CCT Agreements. Accordingly, the Board proposes to further revise the Existing Annual Caps in compliance with the req uirements under Chapter 14A of the Listing Rules. Save for the revision of the Existing Annual Caps, all the terms of the CCT Agreements, including the pricing policies and principal payment terms, and the internal control measures, remain unchanged. Please refer to the announcement of the Company dated 28 August 2026 in relation to the revision of annual caps under the CCT Agreements for further details. Save as disclosed above, there were no important events affecting the Group which have occurred since 30 June 2026.
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24 CLOSURE OF REGISTERS OF MEMBERS The Registers of Members will be closed on Friday, 11 September 2026 in order to determine the entitlement of the Shareholders to the interim dividend. The record date for the proposed interim dividend is Friday, 11 September 2026. All share transfers accompanied by the relevant share certificates and transfer forms must be lodged with the Company’s Hong Kong branch share registrar and transfer office, Tricor Investor Services Limited, at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong before 4:30 p.m. on Thursday, 10 September 2026. The interim dividend is payable on or around Friday, 25 September 2026 to the Sha reholders whose names appear on the Registers of Members on Friday, 11 September 2026. PUBLICATION OF INTERIM RESULTS ANNOUNCEMENT AND INTERIM REPORT This announcement is published on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.kln.com). The interim report for the six months period containing all the information required by Appendix D2 to the Listing Rules will be despatched to the Shareholders and published on the websites of the Stock Exchange and the Company in due course. DEFINITIONS “1H” first half “2024 Announcement” the announcement of the Company dated 31 July 2024 in relation to, among other things, the continuing connected transactions under the CCT Agreements “2024 Circular” the circular of the Company dated 27 August 2024 in relation to, among other things, the continuing connected transactions under the 2024 KLN Logistics Services Framework Agreement and the 2024 SF Lo gistics Services Framework Agreement “2024 CGSA Framework Agreement” the framework agreement dated 31 July 2024 entered into between the Company and SFTS to set out a framework for the provision of the CGSA Services by the Group to SFTS Group “2024 KLN Logistics Services Framework Agreement” the framework agreement dated 31 July 2024 entered into between the Company and SFTS to set out a framework for the provision of the KLN Logistics Services by the Group to SFTS Group “2024 SF Logistics Services Framework Agreement” the framework agreement dated 31 July 2024 entered into between the Company and SFTS to set out a framework for the provision of the SF Logistics Services by SFTS Group to the Group
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25 “2025 Announcement” the announcement of the Company dated 28 March 2025 in relation to, among other things, the proposed revision of the annual caps for the financial years ending 31 December 2025, 2026 and 2027 in respect of the continuing connected transactions under the CCT Agreements “2025 Circular” the circular of the Company dated 6 May 2025 in relation to, among other things, the proposed revision of the annual caps for the financial years ending 31 December 2025, 2026 and 2027 under the 2024 KLN Logistics Services Framework Agreement and the 2024 SF Logistics Services Framework Agreement “AI” artificial intelligence “Asia” Asia conti nent, for the purpose of this announcement only, excludes Greater China and Middle East “Asia Pacific” Oceania and Asia continent, for the purpose of this announcement only, excludes Greater China, Central Asia and Middle East “Board” the board of Directors “CCT Agreements” collectively, the 2024 CGSA Framework Agreement, the 2024 KLN Logistics Services Framework Agreement, and the 2024 SF Logistics Services Framework Agreement “CEIV” Centre of Excellence for Independent Validators “CG Code” the Corporate Governance Code contained in Appendix C1 to the Listing Rules “CGSA Services” means the sales and promotion of the Air Cargo Business “Chinese Mainland” the PRC and, for the purpose of this announcement only, excludes Hong Kong, Macau and Taiwan “Company” or “KLN” KLN Logistics Group Limited, incorporated in the British Virgin Islands and continued into Bermuda to become an exempted company with limited liability, the Shares of which are listed on the Main Board of the Stock Exchange (Stock code: 636) “Controlling Shareholder(s)” shall have the meaning ascribed to it under the Listing Rules “Director(s)” director(s) of the Company “EMEA” Europe, Middle East and Africa which, for the purpose of this announcement only, includes Central Asia “ESG” environmental, social and governance
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26 “Executive Director(s)” executive Director(s) “Existing Annual Caps” the Existing CGSA Annual Caps, the Existing KLN Annual Caps and the Existing SF Annual Caps “Existing CGSA Annual Cap(s)” the existing annual cap(s) on the maximum aggregate amounts of commission payable by SFTS Group to the Group for the two years ending 31 December 2027 with respect to the transactions contemplated under the 2024 CGSA Framework Agreement as disclosed in the 2024 Announcement and as revised pursuant to the 2025 Announcement “Existing KLN Annual Cap(s)” the existing annual cap(s) on the maximum aggregate amounts payable by SFTS Group to the Group for the two years ending 31 December 2027 with respect to the transactions contemplated under the 2024 KLN Logistics Services Framework Agreement as disclosed in the 2024 Announcement and the 2024 Circular and as revised pursuant to the 2025 Announcement and the 2025 Circular, which were subsequently approved by the independent Shareholders of the Company at the special general meeting of the Company held on 26 May 2025 “Existing SF Annual Cap(s)” the existing annual cap(s) on the maximum aggregate amounts payable by the Group to SFTS Group for the two years ending 31 December 2027 with respect to the transactions contemplated under the 2024 SF Logistics Services Framework Agreement as disclosed in the 2024 Announcement and the 2024 Circular and as revised pursuant to the 2025 Announcement and the 2025 Circular, which were subsequently approved by the independent Shareholders of the Company at the special general meeting of the Company held on 26 May 2025 “Greater China” for the purpose of this announcement only, the Chinese Mainland, Hong Kong, Macau and Taiwan “Group” or “KLN Group” the Company and its subsidiaries “HK$” Hong Kong dollars, the lawful currency of Hong Kong “HKAS” Hong Kong Accounting Standards “HKFRS” Hong Kong Financial Reporting Standards “HKICPA” Hong Kong Institute of Certified Public Accountants “HKQAA” Hong Kong Quality Assurance Agency “Hong Kong” Hong Kong Special Administrative Region of the PRC
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27 “IFF” international freight forwarding “IL” integrated logistics “Listing Rules” the Rules Governing the Listing of Securities on the Stock Exchange, as amended from time to time “Macau” Macao Special Administrative Region of the PRC “Model Code” the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules “NVOCC” non-vessel operating common carrier “Oceania” for the purpose of this announcement only, Australia and New Zealand “PRC” the People’s Republic of China “Registers of Members” registers of members of the Company “Renminbi” the lawful currency of the PRC “SFTS” Shenzhen S.F. Taisen Holding (Group) Co., Ltd.* ( ଉέනᔮइ ʮ̡), a wholly-owned subsidiary of S.F. Holding incorporated in the PRC with limited liability and a connected person of the Company “SFTS Group” SFTS and its subsidiaries “S.F. Holding” S.F. Holding Co., Ltd., a joint stock company established in the PRC with limited liability, the domestic ordinary shares of which are listed on the Shenzhen Stock Exchange (stock code: 002352.SZ) and the overseas listed foreign ordinary shares of which are listed on the Main Board of the Stock Exchange (stock code: 06936), and one of the Controlling Shareholders of the Company “Share(s)” share(s) of nominal value of HK$0.50 each of the Company, or, if there has been a subdivision, consolidation, reclassification or reconstruction of the share capital of the Company, shares forming part of the ordinary share capital of the Company “Shareholders” the holders of the Shares “Stock Exchange” The Stock Exchange of Hong Kong Limited “subsidiary(ies)” shall have the meaning ascribed to it under the Listing Rules
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28 “US” the United States of America, its territories and possessions, any State of the United States, and the District of Columbia “%” per cent * For identification purpose only By Order of the Board WANG Wei Chairman Hong Kong, 28 August 2026 As at the date of this announcement, the Directors of the Company are: Chairman, Non-executive Director: Mr WANG Wei Vice Chairman, Non-executive Director: Mr KUOK Khoon Hua Executive Directors: Mr CHEUNG Ping Chuen Vicky, Mr CHO Kin Lun, Mr HO Chit and Mr WONG Siew Loong Non-executive Director: Ms CHEN Keren Independent Non-executive Directors: Dr CHEUNG Wai Man, Mr LAI Sau Cheong Simon, Mr TAN Chuen Yan Paul and Ms WONG Yu Pok Marina