Annual Report 2023

ANNUAL REPORT 2023 21 Bonded logistics operation In 2023, with a direction to building a platform for the harborside logistics supply chain, the Group’s bonded logistics business took initiatives to upgrade the comprehensive service standard of the port, made every effort to improve the resource utilization rate of existing warehouses and yards, and actively responded to the instability of the international shipping market. The average utilization rate of the warehouses of CMBL in Shenzhen reached 96%, as a result of active exploration of resources and comprehensive service development models. Amidst the overall economic downturn and the unfavorable situation of large vacant warehouses in the vicinity, CMITQ improved the comprehensive service standard by emphasizing a working mindset of improving operations, capabilities and services, and managed to maintain its average utilization rate of the warehouses by more than 80%. Tianjin Haitian Bonded Logistics Co., Ltd., which is an associate of the Group, recorded an average utilization rate of 100% of its warehouses. In the Djibouti International Free Trade Zone, the average utilization rate of the bonded warehouse wholly-owned by the Group was 100%, and the average utilization rate of the bonded warehouse, which the Group invested in, was 100%. In 2023, the total cargo volume handled at the three major air cargo terminals in Hong Kong amounted to 3.41 million tonnes, down by 3.4% as compared with the previous year. Asia Airfreight Terminal Company Limited, which is a joint venture of the Group, handled a total cargo volume of 0.67 million tonnes, representing a decrease of 5.6% year-on-year and a market share of 19.7%, down by 0.3 percentage point as compared with last year. FINANCIAL REVIEW The operating results of the Group were affected by the translation effect arising from the depreciation of Renminbi, which was mainly reflected in items such as revenue, costs and share of profits of associates and joint ventures. Coupled with the completion of the disposal of equity interest in Ningbo Daxie in August 2023, the Group’s revenue for the year ended 31 December 2023 amounted to HK$11,482 million, a year-on-year decrease of 8.5%. In addition, due to a year-on-year decrease in share of profits of associates and joint ventures, profit attributable to equity holders of the Company and recurrent profit Note 1 decreased to HK$6,233 million and HK$6,159 million respectively, representing year- on-year decreases of 19.9% and 24.2%. Note 1 Profit attributable to equity holders of the Company net of non-recurrent gains/losses after tax. Non-recurrent gains/losses include: for 2023, net change in fair value of financial assets (equity investments) at fair value through profit or loss, net change in fair value of investment properties and gain on disposal of a subsidiary; while for 2022, net change in fair value of financial assets (equity investments) at fair value through profit or loss, net change in fair value of investment properties and net loss on deemed disposal of partial interest in an associate.