CN Logistics Submitted
its Hong Kong Main Board IPO Application

CN Logistics International Holdings submitted its Main Board IPO application to the Hong Kong Stock Exchange ("HKEX") on 6 April 2020 and CMBC Capital is the sole sponsor.

CN Logistics is a well-established international logistics solutions provider with a primary focus on providing air freight forwarding services and distribution and logistics services in relation to high-end fashion (including luxury and affordable luxury) products and fine wine. The group's customers cover high-end fashion retailers (including The Lane Crawford Joyce Group), brand owners (including Kering Group) as well as wholesalers and retailers of wine (including L'Imperatrice). The group principally engages in three business segments, which are air freight forwarding services, distribution and logistics services and ocean freight forwarding services. Headquartered in Hong Kong, the group's global business spans more than 100 countries, including China, Italy and France through its own business presence and its freight forwarder business partners.

As of 31 December in 2017, 2018 and 2019, the revenue of CN Logistics were HKD 1,523.9 million, HKD 1,538.7 million and HKD 1,483.8 million, respectively, and the gross profit were HKD 261.2 million, HKD 298.4 million and HKD 306.8 million. Overall gross profit margin were 17.1%, 19.4% and 20.7%. The net profit were HKD 47.9 million, HKD 41.1 million and HKD 44.6 million in 2017, 2018 and 2019, representing a net profit margin of 3.1%, 2.7% and 3.0%. The adjusted net profit and adjusted net profit margin (non-HKFRS measures) in 2019 were HKD 53.0 million and 3.6%.

According to the CIC Report, CN Logistics is one of the first air freight forwarders to provide B2B services with integrated air freight forwarding solutions in the PRC and Hong Kong and the group is one of the few specialists in providing freight forwarding and distribution and logistics services for wine in Hong Kong. The group ranked fifth in the integrated air freight forwarding market for high-end fashion products in the PRC with a market share of 1.7% and ranked sixth in Hong Kong, with a market share of 2.5%, for the year ended 31 December 2018 in terms of revenue. For the year ended 31 December 2018, CN Logistics ranked first in the distribution and logistics market for high-end fashion products in both the PRC and Hong Kong, with a market share of 8.2% and 20.0% in the PRC and Hong Kong, respectively.

The application material shows that Japan Post Holdings Co., Ltd. (through its holding company "TOLL"), together with Mr. Lau Shek Yau John and his daughter (Ms. Lau Ying Cynthia) (through CS Logistics), collectively owned 84.1% of equity interest of CN Logistics before IPO. Ms. Chen Nga Man, Mr. Ngan Tim Wing, Mr. Lau Kin Shing Charles, Mr. Wu Kwok Ping Max, Global Megain and Yuantong Taiwan also held 0.7%, 10.8%, 1.1%, 1.1%, 1.1%, 1.1% of the shares, respectively, totaling 100%.