Tradelink 2018 Annual Report

Management Discussion and Analysis (Continued) 管理層討論及分析 （續） Tradelink Electronic Commerce Limited Annual Report 2018 22 Business Review (Continued) Investment in PRC Associate Review Since fully written off of our investment in 上海匯通供應鏈技術與運營 有限公司 (“U-Link”) in 2016, the performance of our PRC associate now refers only to Nanfang as our major associate in China. The performance of Nanfang in 2018 was unfavorable, hence our share of gain from it at HK$1.5 million was down 36.2% compared to HK$2.4 million in 2017. That said, relative to the results for the first half of 2018 with the share of gain amounting to HK$0.4 million only, the business of Nanfang had caught up markedly in the second half of 2018. As explained in the 2018 Interim Report, Nanfang’s business has been facing some difficulties due to the implementation of the nationwide single window in China earlier than expected. In fact, since the mandate was issued by the authority in September 2018, Nanfang could no longer collect revenue from users of its core river manifest declaration service. However, aware of the impending new single window arrangement, Nanfang started a year or so prior to cultivate relations with the PRC Customs and ports authority at the state and provincial level in Guangdong to build ahead a good foundation for it to bid for government system integration and software/platform development projects. Its efforts have so far proven successful, winning for it several major government contracts. With income from these government projects, it managed to maintain a satisfactory turnover in 2018, yet since the margins of these projects were lower than that of its river manifest declaration service, its profit for 2018 still dropped a bit. With solid groundwork done and relations built with relevant government authorities and given that its largest shareholder is a state- owned enterprise with a strong background and state-level connections, Nanfang is expected to have a good chance to turnaround its business without relying on its core river manifest declaration business. On that basis, barring any adverse change of the operating environment due to new/change of government policies, we are cautiously optimistic about the future outlook of Nanfang’s business. 業務回顧（續） 投資中國聯營公司回顧 自二零一六年我們悉數撇減上海匯通供應鏈技術 與運營有限公司（「上海匯通」）的投資以來，中國 聯營公司表現僅涉及我們的中國主要聯營公司南 方。二零一八年南方的業績未如理想，我們的分 佔收益為港幣 1,500,000 元，較二零一七年的分佔 收益港幣 2,400,000 元下跌 36.2% 。與二零一八年 上半年的業績比較，分佔收益僅為港幣 400,000 元，南方的業務於二零一八年下半年已明顯趕 上。如二零一八年中期報告所述，南方的業務面 對的困難是由於中國全國單一窗口的實施較預期 為早。事實上，自推出單一窗口以來，南方自二 零一八年九月起無法在政府機構的授權下向其核 心小船艙單報關服務的用戶收取費用。在預計中 國即將實施單一窗口的情況下，南方自一年多前 已開始與中國海關及廣東省的國家及省級港口機 關建立關係，以爭取政府的系統集成及軟件╱平 台開發項目。其努力令他們能成功贏得幾份政府 主要合約。憑藉該等政府項目的收入，南方設法 於二零一八年維持令人滿意的營業額，但由於該 等項目的利潤率低於其小船艙單報關服務的利潤 率，故南方於二零一八年的溢利仍稍微下降。 憑著與相關政府機構開展的基礎工作及已建立的 關係，以及其大股東為擁有強大背景及在國家層 面有聯繫的國有企業，即使沒有其核心小船艙單 報關業務，南方仍有很大的機會振興業務。在此 基礎上，除非有新的╱不斷變化的政府政策對經 營環境造成任何不利影響外，我們對南方業務的 未來前景持審慎樂觀的態度。