Actively explores new business opportunities; Total revenue increases by 8% year-on-year to $55.8 million

HONG KONG SAR – Media OutReach – 1 April 2022 – Travel business process management provider and travel products services provider Cinese International Group Holdings Limited (“Cinese International” or the “Group”; stock code: 1620) has announced its annual results for the year ended 31 December 2021.

Total revenue of the Group increased by approximately HK$4.2 million or approximately 8.1%, from approximately HK$51.6 million for the year ended 31 December 2020 to approximately HK$55.8 million for the year ended 31 December 2021, which was mainly due to revenue generated from the new other business process management segment. The gross profit was approximately HK$16.6 million; and the gross profit margin was approximately 29.7%. The Group’s performance in 2021 continued to be impacted by the ongoing pandemic of the coronavirus disease (“COVID-19”) in the year under review. These uncertainties negatively affected the Group’s financial performance in 2021. However, increasing vaccination rates worldwide helped to spur the gradual recovery of the travel industries. Amid strong demand for anti-pandemic and medical assistance, the Group was able to leverage its knowledge and experience in the travel business process management segment to explore new business opportunities. In 2021, the Group secured a new customer, a healthcare company in Canada, and provided business process management services to support COVID-19 testing in Canadian airports. Benefiting from such new business opportunity, the Group successfully developed a new business process management segment in 2021, which contributed significantly to the Group’s revenue.

Ms. Mariana Kou, Chairperson and Executive Director of Cinese International, said, “The Group’s performance in 2021 continued to be impacted by the ongoing COVID-19 pandemic. However, the Group actively explored new business opportunities during the year, capitalizing on the strong demand for anti-pandemic assistance. Leveraging its knowledge and experience in the travel business process management segment, the Group successfully developed a new business process management services segment, consequently created a new revenue stream. With the relaxation of travel restrictions in various countries since the second half of 2021, the travel industries have shown signs of improvement, which also contributed to the gradual recovery of the Group’s businesses in the second half of 2021. We believe that the worst has passed, and the Group will continue to actively explore potential business opportunities arising from the high demand for anti-pandemic and medical assistance, enabling the Group to continue to develop its business steadily.”

Future Prospect

Looking ahead, despite uncertainties relating to the spread and control of the COVID-19 pandemic, the gradual increase in vaccine uptake has resulted in local entry and exit policies being gradually relaxed, and this in turn is expected to lead to the resumption of tourism activities in countries around the world. In the past, the Group has adopted a series of measures to control costs. Moving forward, it will closely monitor global trends in the macroeconomy and maintain a pragmatic approach to its business.​

Ms. Mariana Kou, Chairperson and Executive Director of Cinese International, continued, “We expect the volatile COVID-19 situation to continue to impact the global aviation and tourism industries. However, as vaccination rates rise, more and more countries are adopting a ‘coexisting with the virus’ strategy, particularly Canada and the United States, where the Company has a major business presence. According to figures from the International Air Transport Association (IATA), travel bookings have gradually returned to 2019 levels since the second half of 2021, which is believed to be beneficial to the Group’s business development.”

Further, the Group will continue to explore opportunities to diversify its business with its knowledge and experience so as to expand its income sources and enhance future earning capability and potential. The Group will continue to deploy business strategies with a view to sustain its travel related businesses and endeavor to explore suitable business opportunities from time to time in the travel consultancy, healthcare, hospitality and other potential service industry to create business synergy and bring value to shareholders of the Company.

About Cinese International Group Holdings Limited

Cinese International is a long-established air ticket consolidator, travel business process management provider and travel products and services provider in Canada, founded in 1976 and with more than 40 years of operating history. The principal businesses of the Group include (i) air ticket distribution in which it distributes air tickets to travel agents and travelers and issue air tickets directly on behalf of contracted airlines; (ii) travel business process management in which it provides mid-office and back-office support services to travel agents; (iii) other business process management in which it provides certain translation and agent services on behalf of a healthcare company; and (iv) travel products and services in which it designs, develops and sells package tours, as well as other travel products and services to travel agents and travelers.

#CineseInternational

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Marie-Christine Lombard, Chief Executive Officer of GEODIS, commented: “The acquisition of Keppel Logistics will mark a key milestone in GEODIS’ Asia-Pacific ambitions. Keppel Logistics is a well-established regional player, with a strong focus on innovation. Through this acquisition which will combine GEODIS’ worldwide leadership with Keppel Logistics’ robust local footprint, we believe we can create great value for our customers, facilitating their growth, particularly in the eCommerce Asian market”.

Based in Singapore, Keppel Logistics is a Contract Logistics specialist with close to 500 employees. Active throughout Southeast Asia, Keppel Logistics (ranked in the top 5 contract logistics players in Singapore) owns over 200,000m² of warehouse space in Singapore, Malaysia and Australia. The company offers end-to-end B2B and B2C logistics solutions, from warehousing to last mile delivery, with strong skills in eCommerce omnichannel service offerings thanks to its fast-growing UrbanFox platform.

This project is a significant step along GEODIS’ strategic roadmap for the Asia Pacific region, where GEODIS currently employs 3,700 people spread over 76 sites. The acquisition will reinforce GEODIS as a leading logistics service provider, further expanding its footprint by adding to recent investments in contract logistics sites in India, South Korea and Australia.

Onno Boots, President and CEO of GEODIS Asia-Pacific said: “As one of the leading logistics providers, we are continuously looking for ways to evolve the region’s supply chain and our clients’ eCommerce ecosystem. The acquisition will strengthen our contract logistics and digital omnichannel capabilities, elevate our end-to-end logistics solutions and bring greater value to customers across the region. By enhancing our eCommerce services, we will provide brands with the ability to scale their online presence seamlessly and effectively navigate supply chain challenges to accelerate their growth in this region”.

Thomas Pang, CEO of Keppel Telecommunications & Transportation added, “For over 50 years, Keppel Logistics has been providing customised integrated logistics in Singapore. We believe the integration of Keppel Logistics as part of GEODIS will help accelerate Keppel Logistics’ growth, allowing it to scale up and provide even better value propositions to both its customers and internal stakeholders”.

The acquisition is subject to regulatory review and approvals, which are expected to be obtained by end of Q2 2022. Both companies will operate as independent businesses and run their operations as usual until that time.

GEODIS – www.geodis.com

GEODIS is a top-rated, global supply chain operator recognized for its commitment to helping clients overcome their logistical constraints. GEODIS’ growth-focused offerings (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport), coupled with the company’s truly global reach thanks to a global network spanning nearly 170 countries, is reflected by its top business rankings: no. 1 in France and no. 7 worldwide. In 2021, GEODIS employed over 46,000 people globally and generated €10.9 billion in revenue.

#GEODIS

The issuer is solely responsible for the content of this announcement.

The enhanced principles were based on feedback from industry participants and stressed the importance of stewardship outcomes.

SINGAPORE – Media OutReach – 31 March 2022 – Stewardship Asia Centre (SAC) today released the second edition of the Singapore Stewardship Principles (SSP) for Responsible Investors, updating practices to enhance Singapore’s investment environment.

The revisions were driven by a 10-member steering committee, supported by the Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX).

Singapore first introduced the principles in 2016, outlining practices related to the core behaviour and actions associated with stewardship to promote active and responsible investment. Since then, capital markets have undergone profound developments as global concerns intensified over the impact of financial investments on the economy, society and the environment. Stakeholders emphasised that investors should become better stewards by demonstrating a genuine intent to deliver sustainable performance and long-term value to clients and beneficiaries, as well as to factor in environmental, social and governance (ESG) considerations. The steering committee took into account the global market developments in shaping the principles. An industry survey was conducted in March 2021 to garner feedback from the asset management industry on their perspective of investment stewardship. This was followed by an open consultation to obtain stakeholders’ feedback on the draft of the updated SSP in November 2021.

“We received feedback from more than 20 stakeholders. These recommendations were taken into consideration to enhance the principles in the areas of internal structures and governance, stewardship beyond listed companies, and ESG considerations. We urge the financial services and investment industry to adopt the updated SSP and make a greater commitment towards responsible investment,” said Rajeev Peshawaria, CEO of SAC.

An as industry-led initiative, compliance to the principles remains voluntary. However, under the enhanced SSP, signatories are strongly encouraged to submit evidence of their stewardship efforts annually to the secretariat of the steering committee.

Abigail Ng, Executive Director and Head of Markets Policy and Infrastructure Department of MAS, said: “MAS is supportive of SAC and the industry’s collective efforts in updating the Singapore Stewardship Principles. Effective stewardship calls for a multi-stakeholder approach by market participants including asset owners, asset managers and service providers. Responsible investment stewardship can help raise corporate governance standards, drive positive change and create sustainable long-term value for all stakeholders – not just for the individual company or investor, but also for the wider economy, environment and society. This is in line with MAS’ efforts to promote sustainable financing in our financial sector. We strongly encourage market participants to become signatories of the SSP and to co-create sustainable business value in an environment of good governance.”

“SGX supports the updated Singapore Stewardship Principles for Responsible Investors. Institutional investors, through their investment strategies, play an important role in the allocation of capital to companies. Institutional investors can shape the practices of their portfolio companies through active stewardship and their investment decisions. This is especially pertinent with the market’s increased focus on ESG considerations and outcomes. With institutional investors engaging actively with companies, I hope SGX-listed companies will be more motivated towards creating and sustaining long term value,” said Tan Boon Gin, CEO of Singapore Exchange Regulation.

Industry participants, including asset managers and asset owners, welcome and support the updated principles.

Amar Gill, Head of Investment Stewardship for APAC, BlackRock, said: “The updated SSP and its enhanced rigour reflecting international developments and local trends in stewardship and corporate governance are welcome steps towards creating a positive investment ecosystem in Singapore. Its guidance will help managers like us and companies themselves protect and advance the economic interests of long-term investors like our clients.”

Sherene Ban, CEO of Singapore and Southeast Asia of J.P. Morgan Asset Management (JPMAM), said: “Active ownership is woven into our active management heritage and we constantly evolve our sustainable investing approach to keep pace with the changing requirements of our clients and regulators. The renewed principles, including monitoring investments regularly, staying active through constructive and purposeful engagement, and taking a collaborative approach in exercising stewardship responsibilities, are in line with JPMAM’s approach to stewardship and engagement.”

Prudential Singapore’s CEO Dennis Tan said: “In the drive for sustainability, every voice matters. We are proud to be an SSP signatory as its principles are aligned with our approach to responsible investment. Through active engagement with companies in our investment portfolio, we aim to achieve our net-zero target by 2050. We look forward to working collectively to further our commitment to creating a stronger, healthier future for all.”

Manish Tibrewal, CEO of Maitri Asset Management, a multi-family office, said: “Given the complexities of managing ESG issues, regular communication and collaboration form a key part of how we engage with our portfolio companies. At Maitri, we constantly align ourselves with industry-leading standards to engage with our portfolio companies. This has enabled us to exchange knowledge and further hone our ESG expertise in a transparent manner so both investor and investee are constantly ahead of the curve when it comes to adapting to the latest ESG trends.”

For more information about the updated principles, also known as SSP 2.0, please click here or visit http://www.stewardshipasia.com.sg/sites/default/files/2022-03/SSP_For%20Responsible%20Investor%202.0.pdf.

Notes to Editors:

Steering Committee of SSP 2.0:

About Stewardship Asia Centre (SAC)

SAC is a non-profit organisation established by Temasek, dedicated to helping business and government leaders, investors and individuals activate stewardship practices through research, executive education and engagement. We define stewardship as creating value by integrating the needs of stakeholders, society, future generations and the environment.

#StewardshipAsiaCentre #SAC

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