In the first half of 2021, notwithstanding the resurgence of the novel coronavirus pandemic (the "Pandemic") in certain regions, the Pandemic was under effective control in the PRC and the overall situation was stable. The Group actively responded to the changes in internal and external environment, seized market opportunities and actively explored investment, acquisition and merger opportunities with an aim to expand its business scale. Meanwhile, it has continued to optimise its operation management capacity and actively promoted the development of its short closed-loop "investment, construction, financing and operation" integrated logistics hub business model to enhance efficiency and secure steady income. The operating results from the Group's core business segments have basically returned to pre-pandemic levels and demonstrated a growing momentum. For the six months ended 30 June 2021 (the "Period"), the revenue of the Group increased by 100% as compared to the corresponding period of the previous year to HK$7,062 million.

According to the 14th Five-year Plan, the Group is striving to establish a comprehensive logistics ecosystem combining "inland port networking, logistics parks, air freight and railway freight logistics infrastructure + intelligent and cold chain logistics". The elaboration of the Group's core business is as follows:
Inland port networking: based on the two current ports, Nanjing Xiba and Jingjiang, with the supporting ports nearby like Shenqiu, Fengcheng, etc., the Group aims to become a competitive inland port operator by implementing a "Yangtze River Port Networking" plan, by further projects mergers and acquisitions, in addition with the consideration of suitable new projects.
Logistics Parks: the Group has already established 39 logistics parks in 30 key logistics gateway cities across China, with 26 projects under operation and a total operating area of approximately 3 million square meters (90% are high standard warehouses).
Air freight and railway freight logistics infrastructure: the Group will expand its outreach to air cargo (Air China Cargo Terminal in Shenzhen Airport) and railway business (Pinghunan Integrated Logistics Hub Project) by cooperating with central government enterprises such as Air China Cargo, China Railway Guangzhou Group, and Sinotrans Limited. Pinghunan project is the only rail freight transportation hub in Shenzhen, with a site area of 900,000 square meters. It will develop into not only the most comprehensive hub in Shenzhen, but also a national integrated logistics hub and even the largest project in Asia.
Intelligent logistics: Intelligent logistics business is served as a value-added service on top of "inland port networking, logistics parks, air freight and railway freight logistics infrastructure" logistics network. Under this business segment, we aim to improve the digitalization and intelligence level of the various infrastructure operations, and facilitate the business development of our asset-heavy segments. The Group entered into a capital injection agreement to invest in China Comservice Supply Chain Management Company Ltd, a subsidiary of China Communications Services Corporation Limited., and made strategic investment in Prolog Technologies Co., Ltd, actively promoting the intelligent warehouse and logistics business.
Cold chain logistics: Cold chain business is also a value-added service on top of the logistics network. In the short run, the Group prioritizes the supply of customized cold storage warehouses for the cities like Shenzhen where there is great demand, and also provides standardized cold storage warehouses properly or reserve cold storage warehouses for these cities; in the long run, by utilizing strengths of the logistics network, the Group will provide customers with integrated solution of "cold storage warehouse + warehouse operations + urban distribution", achieving the integration of warehousing and distribution.
By establishing the comprehensive logistics ecosystem combining "inland port networking, logistics parks, air freight and railway freight logistics infrastructure + intelligent and cold chain logistics" and leveraging our strong logistics network to promote the development of intelligent logistics and cold chain business, the Group will strive to improve performance and enhance shareholders with greater value.

The long closed-loop development model includes "investment, construction, operation and transformation". Under this model, the Group will seize the opportunities for potential one-off gain from land value appreciation and the recurring development and operating gain by transforming and upgrading the traditional logistics parks with prime locations (eg. Shenzhen and the Greater Bay Area, Kunshan District and the Yangtze River Delta, Shijiazhuang in Hebei province and the Beijing-Tianjin-Hebei integration zone) as a result arising from urban development planning. This development model will imply asset value maximization, which will benefit our shareholders ultimately. The Qianhai Project represents the first of the Group's project successfully implemented under the long closed-loop "investment, construction, operation and transformation" development model. Through such land consolidation and preparation in Qianhai, the Group obtained compensations equivalent to approximately RMB8,373 million, through the swap of land with a total area of approximately 120,000 square meters and a gross floor area of approximately 390,000 square meters (comprising saleable residential area of approximately 190,000 square meters and apartment area of approximately 25,000 square meters) under the new land planning conditions. Gain from land value appreciation represents the initial benefit of the land consolidation and preparation in Qianhai. As the swapped land parcels are gradually developed and released into the market, the project will continue to unlock value from its development in the next few years, which would in turn further support continuous improvement of the Group's performance.
Besides,the Meilin Checkpoint Project is located at the previous site of Huatongyuan Logistics Centre. The Group successfully obtained the land parcel under the new land planning conditions and transformed and upgraded it into a comprehensive development project in the course of the historic implementation of the then urban renewal plan of Meilin Checkpoint by the Shenzhen Municipal Government. The land parcels of the Meilin Checkpoint Project have been transformed and upgraded to a comprehensive development project with a total plot ratio-based gross floor area of approximately 486,000 square meters comprising residential, commercial, office, business apartments, as well as public utility and ancillary facilities. With the phased development and sale of the Meilin Checkpoint Project, the Group has generated ample capital to provide solid financial support for the development of the Group's logistics business.
Apart from the above two projects, the transformation and upgrading of South China Logistics Park is also in progress. The project was included in one of the six key industrial land consolidation and renewal projects in Longhua District, Shenzhen. As the Group's single largest logistics park, it is expected to gradually realize its value in the coming years and bring considerable economic benefits. In addition, the logistics parks with prime locations in Guiyang, Kunshan, Shijiazhuang and other cities are also expected for potential transformation opportunities in the future, which will further enhance profitability of the Group.
In the second half of 2021, the Group will continue to seize the opportunities arising from urban development and renewal under its long closed-loop "investment, construction, operation and transformation". On the one hand, the Group will actively promote the development and sale of the Meilin Checkpoint Project and the Qianhai Project. On the other hand, the Group will vigorously speed up the transformation and upgrade of South China Logistics Park.
The short closed-loop development model includes "investment, construction, financing and operation". As the logistics and warehousing industry proliferates and rent surges, the value of integrated logistics hubs will rise steadily. The Group is actively exploring possible ways to securitize the assets of its integrated logistics hubs and implement the short closed-loop "investment, construction, financing and operation" business model. Under this model, the securitization of the assets of integrated logistics hubs will not only accelerate fund recovery, shorten project turnover time, lower gearing ratio and ensure adequate cash flows, but also realize asset appreciation from the development, construction, incubation and operation of the integrated logistics hubs and crystalize the actual value of such assets, thereby enabling rapid expansion of the Group's urban integrated logistics hubs operation and management. During the Period, the Group achieved a breakthrough in its closed-loop "investment, construction, financing and operation" integrated logistics hub business model. In June 2021, the Group successfully injected Nanchang Integrated Logistics Hub project into a logistics real estate private equity fund established jointly by the Group and Goldstone Investment Co., Ltd., which resulted in recognition of a profit attributable to shareholders of HK$175 million to the Group with an asset appreciation rate of 64%. The said securitisation of assets was a monumental attempt under the development model for integrated logistics hubs, as it established sources of equity financing, lowered finance cost, increased asset efficiency, and facilitated the continuous sustainable development and further accelerated the expansion of the integrated logistics hub business. In the second half of 2021, the Group will actively progress the injection of the Hefei and Hangzhou projects into a fund and prepare for the public offering of Real Estate Investment Trusts ("REITs") of target assets under the policy framework.
Through the "investment, construction, operation and transformation" and the "investment, construction, financing and operation" business development models, the Group will realize earnings in advance, optimize its capital structure, and further obtain logistic resources to accumulate long-term high-quality assets, in order to achieve rapid development of logistic business.

In respect of the logistics business, the total revenue of the logistics business for the Period increased by 37% as compared to the corresponding period of the previous year to HK$2,224 million, mainly due to the outbreak of the Pandemic and rent relief program implemented by the Group during the same period of the previous year. In 2021, revenue rebounded to the pre-pandemic level driven by the continuous recovery in demand for logistics facilities due to the effective implementation of the Pandemic prevention and control policy. In addition, profit attributable to shareholders increased by 766% as compared to the corresponding period of the previous year to HK$1,230 million, attributable to successful injection of the Nanchang Integrated Logistics Hub project into the fund and completion and delivery of the residential project of the first phase of the Qianhai Project during the Period.
During the Period, revenue from the logistics park business increased by 57% as compared to the corresponding period of the previous year to HK$611 million, which was mainly due to the outbreak of the Pandemic and rent relief program implemented by the Group during the same period of previous year. In 2021, revenue rebounded to the pre-pandemic level driven by the continuous recovery in demand for logistics facilities due to the effective implementation of the Pandemic prevention and control policy. Profit attributable to shareholders increased by 296% as compared to the corresponding period of the previous year to HK$316 million, which was mainly attributable to the successful injection of the Nanchang Integrated Logistics Hub Project into the fund during the Period, resulting in a profit attributable to shareholders of HK$175 million.
During the Period, revenue from the logistics service business decreased by 8% as compared to the corresponding period of the previous year to HK$553 million whilst operating costs increased due to the changes to international shipping rates. As a result, profit attributable to shareholders decreased by 66% as compared to the corresponding period of the previous year to HK$4.15 million.
During the Period, revenue and profit attributable to shareholders from the port and related service business increased by 65% and 11% as compared to the corresponding period of the previous year to HK$1,060 million and HK$55.45 million, respectively, mainly attributable to the Group's effective efforts on developing new customers and maintaining existing customers, as well as the successful launch of new business operations, which boosted the revenue growth of the port and related service business.
During the Period, the logistics park transformation and upgrading business contributed profit of HK$854 million to the Group, which mainly comprised the investment gain resulted from the delivery of the residential project, PARKVIEW BAY, jointly developed by the Group and Shum Yip Land Co., Ltd., being the first phase of the Qianhai Project in June 2021.

Looking forward to the second half of 2021, the Pandemic will remain as the largest uncertainty and challenge faced by the global economies. Nevertheless, macro-economy is growing steadily in the PRC and the country's long-term economic development and fundamentals stay positive under its current "Dual Circulation" national development framework. Meanwhile, the continuance of the Pandemic has turned online shopping into the norm. Demand for contactless delivery will bring business opportunities for intelligent warehouses, cold chain, real-time logistics and inter-city delivery. Market demand for high-standard warehouses will continue to be strong. Capitalizing on opportunities brought by this round of structural growth, the Group will expand rigorously to pave the way for its high-quality development in the future.
Despite the complex and ever-changing business environment in the future, the management of the Group believes that with each challenge comes an opportunity. As such, the Group will remain vigilant about market dynamics and regularly review the Group's development strategies and risk control systems. On the other hand, the Group will capitalize on its distinct competitive edge in terms of urban auxiliary infrastructure and ample cash flows from the core toll road and logistics businesses to promote the development of the intelligent warehouse and cold chain businesses, as well as expand its scale by speeding up its investment, merger and acquisition projects to ultimately achieve sustainable development.

with a site area of approximately 45,000 square meters, the Liguang Project is planned to be a logistics park with six levels above ground and two levels underground, comprising a total gross floor area of 265,000 square meters. The Liguang Project will be built as a modern, high-standard, intelligent and eco-friendly benchmark logistics park. Once completed, it will further consolidate the Group's market share in the Shenzhen area. Piling and foundation work was completed during the Period while the construction of the main structures started in early May. It is anticipated that this project will be put into operation in 2023.

Shenzhen International Kanghuai E-commerce Center is the Group's first asset-light project operated by way of leasing and it has an operating area of approximately 138,000 square meters. This park is one of the Green Freight Distribution Pilot Projects (绿色货运配送示范工程) in Shenzhen. Business services provided in the park include warehouse logistics services, large data center, office buildings, dormitories, restaurants and supermarkets, etc. The park also supports interactive sharing and intelligent interchange of data across the park with an intelligent park information management system. The operations of the project have stabilized and achieved satisfactory marketing results after successfully attracting a number of branded logistics enterprises. As at 30 June 2021, it attained an overall occupancy rate of 96%.

In the first half of 2021, South China Logistics Park actively explored the potential for increasing its revenue and profits with its existing resources. It actively expanded the high value-added customs bonded business by conducting intelligent upgrade at its existing warehouses and establishing an intelligent warehouse that allows players in the customs bonded trade between Hong Kong and Shenzhen to pack bulk goods into containers. It also put effort into the recovery and leasing of assets subject to expiring leases, thereby significantly increasing rental amount per unit for new leases.
Meanwhile, capitalizing on the Group's brand influence and operating ability, South China Logistics Park was engaged in a new logistics park management project, namely Yueyang Intelligent Commercial and Trading Park (岳阳智慧商贸物流园). With a gross floor area of approximately 250,000 square meters, this project will become the first integrated intelligent commercial and trading logistics park featuring commercial and trading, storage and ecommerce showroom functions in Yueyang. The first phase of the project will comprise storage facilities, of which approximately 50,000 square meters of high-standard warehouse and sorting and distribution center have been completed. The second phase will offer commercial auxiliary facilities. In the first half of 2021, Yueyang Intelligent Commercial and Trading Park achieved full occupancy.
During the Period, it continued to progress the development and construction of the second phase of South China Logistics Park Project. Taking advantage of the positioning of Shenzhen where the park is located, and in order to seize the significant development opportunities in the industry, the second phase of South China Logistics Park will be developed into a combination of a global procurement and supply chain management platform, corporate headquarters as well as ecommerce and logistics financing platform. With a site area of approximately 62,000 square meters and a gross floor area of approximately 182,000 square meters, the second phase of the park will be developed and constructed in two stages. Completion and delivery of the first stage is expected to take place in 2021.

The Group has many years of experience in the development, operation and management of logistics parks. Since 2013, the Group has fully adopted the "Integrated Logistics Hubs" development strategy with a view to building a modern intelligent logistics platform with "large-scale logistics park network + integrated logistics services" as its core competitive edge.
The business model of integrated logistics hubs is based on city and inter-city distribution centers that are equipped with warehousing, distribution and transfer capabilities, raw and fresh food cold chain centers, as well as e-commerce centers. It also provides commercial and financial value-added services, as well as high-quality and efficient services to numerous ecommerce platforms, courier companies, producers and manufacturers.
As at 30 June 2021, the Group managed and operated a total of 26 logistics projects in a total of 30 key logistics gateway cities across the country, with a total operating area of 2.78 million sqm. Attributable to the market demand for quality modern logistics facilities and effective marketing, these projects recorded satisfactory leasing performance with an overall occupancy rate of 92%.
The Group continued to increase its efforts to develop its logistics business and to enlarge the scale, efficiency and competitiveness of its core logistics operations. On 29 June 2021, the Group acquired several high-standard logistics warehouse projects in the three core cities of Shanghai, Tianjin and Chongqing at an aggregate amount of approximately RMB1,600 million. The acquisition of these projects will contribute approximately 297,000 square meters of site area and approximately 246,000 square meters of gross floor area to the Group's portfolio, rapidly expanded its nationwide logistics operating area and accelerated the implementation of "multiple logistics parks within one city" strategy in core cities. On the other hand, the Group will also identify logistics park investment opportunities in various regions across the country to expand its logistics park network and enlarge the total reserve of its mature logistics assets, thereby laying the foundation for potential future assets securitization.
While exploring new integrated logistics hub projects for development, the Group is also making steady progress with the construction or planned construction of projects to ensure meeting the work schedules. In the first half of 2021, the integrated logistics hub projects in Nantong and Xuzhou were completed and put into operation, resulting in an increase of approximately 200,000 square meters in the operating area of integrated logistics hubs. In addition, the construction works of the second phase of the Hangzhou Project, the Qingbaijiang Project in Chengdu, the Caidian Project in Wuhan, the Erqi Project in Zhengzhou, the Jiangyin Project in Wuxi and the second phase of the Yiwu Project have begun as planned. Several projects are expected to be completed and put into operation in the second half of 2021 and 2022.

The Group will improve the competitiveness and profitability of logistics business through the implementation of "three actions".Firstly, the improvement of Shenzhen's industrial status. The Group will accelerate the development and construction of key projects in Shenzhen, such as Pinghunan Integrated Logistics Hub Project and Liguang Project etc, And actively plan the transformation and upgrading of South China Logistics Park. Besides, the Group will strive to participate in the investment and construction of logistics parks and hubs in Shenzhen, and actively acquiring projects, in which to improve the Group's market share of its logistics and warehousing in Shenzhen. At the same time, through delicacy management, continue to improve the per unit yield level and rent level, and the occupancy rate of Shenzhen Logistics Parks. Secondly, to optimize and expand the business model of the Integrated logistics hub. On one hand, accelerate its layout in Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta, Beijing, Tianjin and Hebei and other important logistics gateway cities across the country. And expand industrial scale.On the other hand, continuously optimize the business model and promote the Integrated Logistics Hub to form a short closed-loop "investment, construction, financing and operation" with the help of industrial funds, REITs and other financial instruments, at the same time, strengthen the development of value-added service products such as third-party logistics, logistics finance and logistics park supporting facilities, and enrich the business format and profit model of Integrated Logistics Hub. Thirdly, to build a new engine for intelligent warehouse and cold chain logistics, vigorously promote the construction and operation of relevant infrastructure according to actual needs of customers, and increase the merger & acquisition of upstream and downstream software and hardware integration companies, so as to make intelligent warehouse and cold chain logistics business a new source of revenue and profit for the Group.

In the first half of 2021, Nanjing Xiba Port continued to optimize its customer portfolio industry layout. It has made a huge effort in reaching out to customers with business growth potential while maintaining existing customers. In the first half of 2021, a total of 251 seagoing vessels (including 29 foreign vessels) berthed at Nanjing Xiba Port with a total throughput of 19.91 million tonnes, representing a year-on-year increase of 14.4%, of which 2.70 million tonnes was shipped by train, representing a year-on-year increase of 7.6%. By taking advantage of the port's large-scale assets, the supply chain business for thermal coal, petroleum coke and foundry coke were established and are operating in an orderly manner. In addition, the Group is actively exploring new businesses such as "ship-to-rail transfer" business, and optimizing its port business portfolio in order to capitalize on its function as a distribution and consolidation hub for ships and railway.
The Group also made further effort in searching for quality port project. The Group successfully acquired the Fengcheng Shangzhuang Project, the Jingjiang Port Project and the Shenqiu Port Project in 2020. The construction of the Fengcheng Shangzhuang Project, which is owned by the Group as to 20%, commenced at the end of December 2020 and is currently proceeding as planned. The Jingjiang Port Project is also progressing in an orderly manner. The approval procedures are currently underway and it is expected that construction will begin in 2022. The Jingjiang Port Project will effectively take up the functions and customer base of the second phase, while creating good synergies with the first phase of the Nanjing Xiba Port. This project will play an important role in widening and adjusting, among other things, the types and sources of goods processed by the port segment. Furthermore, in the first half of 2021, the Group and Shenqiu County Government entered into a strategic cooperation agreement to step up their cooperation in the development of ancillary urban infrastructure, especially in planning and construction of logistics parks, the provision of port processing and its value-added services as well as integrated water and rail transportation.

Building on Nanjing Xiba Port, the Group will continuously establish its planned port network and strengthen its leading position in upstream and downstream Yangtze River by stepping up its investments in quality port projects and expending its network. It will enable more cooperation based on its urban ancillary infrastructure projects and enhance its overall competitiveness.

The first phase of the Qianhai Project has a total gross floor area of approximately 110,000 square meters, comprising approximately 51,000 square meters of residential project, approximately 35,000 square meters of office project and approximately 25,000 square meters of commercial project. In the first phase of the Qianhai Project, the residential project jointly developed by the Group and Shum Yip Land Co., Ltd., namely PARKVIEW BAY, was completed and delivered in June 2021. The office project, which was positioned as the information port for the "Belt and Road Initiative" in Qianhai jointly constructed and developed by the Group and China Center for Information Industry Development (中国电子信息产业发展研究院) ("CCID"), is included in the "3-Year Action Plan of Shenzhen to Participate in the Construction of the Belt and Road (2019-2021)" (深圳市参与「一带一路」建设三年行动方案 (2019 年－2021年)). Capitalizing on Qianhai' s special zone position and policy advantage in the Guangdong-Hong Kong-Macao Greater Bay Area, this project will benefit from the Group' s extensive supply chain management experience and CCID' s strong information technology service capacity and will focus on the development of supply chain services, intelligent manufacturing services as well as promoting the deep integration of the digital and real economies across the Guangdong-Hong Kong-Macao Greater Bay Area and countries/regions along the "Belt and Road Initiative". The registration of completion for this project was completed on 27 July 2021 and its marketing and operating works were proceeding in an orderly manner. As at early August 2021, contracted leases of this project reached 8,000 square meters. As for the commercial project, the Group and SCPG (印力集团) will capitalize on the strengths of each other and turn the Mawan area in Qianhai into a unique boutique commercial project. Roadshows have been held to promote this project under the brand "Qianhai Yinli" (前海‧印里) to the public. As at early August 2021, several potential lessees have expressed their intentions to lease an aggregate of 45% of the commercial area available for lease. This project will be put into operation in 2022.

The second phase of the Qianhai Project has a plot ratio-based gross floor area of approximately 110,000 square meters, comprising residential area of approximately 91,000 square meters. The construction of the second phase of the Qianhai Project officially commenced in March 2021. Considering the overall planning of and the shortage of solely residential projects in the Qianhai area, it is expected that the construction and sale of the second phase of the Qianhai Project will greatly enhance the value of the Group' s resources in the Qianhai area.
The third phase of the Qianhai Project has a plot ratio-based gross floor area of approximately 172,000 square meters in aggregate, comprising residential area of approximately 50,000 square meters and apartment area of approximately 25,000 square meters, which are available for sale. It also comprises office buildings with a floor area of approximately 79,000 square meters as well as commercial floor area of approximately 17,000 square meters, which represent saleable area. Currently, the Group is planning to conduct an in-depth cooperation with the Qianhai Authority to establish a bonded design center for research and development, an international logistics distribution center, a Shenzhen-Hong Kong distribution center and a bonded exhibition and exchange center, to promote the comprehensive development of the Group' s logistics-related lands.

The Meilin Checkpoint Project is developed and constructed in three phases: the first phase includes residential properties with a saleable area of approximately 75,000 square meters and indemnificatory housing (保障房) of approximately 42,000 square meters; the second phase will provide residential properties with a saleable area of approximately 68,000 square meters, and the third phase will provide residential properties with a saleable area of approximately 63,000 square meters and office and business apartment complexes of approximately 190,000 square meters. The overall planning of this project includes the commercial ancillary properties of approximately 34,500 square meters.
All residential units of the first phase of the Meilin Checkpoint Project, namely He Feng Xuan (和风轩), have been sold out and delivered to their owners for use. The inspection and acceptance of He Ya Xuan (和雅轩), which is the second phase of the Meilin Checkpoint Project, have been completed in 2020 while its renovation are currently proceeding in batches. The third phase of the project, namely He Song Xuan (和颂轩), has commenced construction and presales in December 2020, and all of its residential units have been sold out.

As economic growth in the PRC speeds up and the "two-region national development" strategy rolls out, the Guangdong-Hong Kong-Macao Greater Bay Area will become one of the most open and vibrant economic zones in the country. However, land supply in the Greater Bay Area is limited and land resources in the core areas are particularly scarce. Being the Group's biggest traditional logistics park in Shenzhen, South China Logistics Park has a site area of approximately 580,000 square meters, occupying a convenient prime location with ample development potential. It is expected that the successful transformation of this park will materialize the long closed-loop "investment, construction, operation and transformation" development model, unlock its intrinsic value gradually, and bring substantial economic return for the Group in the next few years.
The transformation and upgrading of South China Logistics Park made significant progress in the first half of 2021. It was endorsed in the "Shenzhen General Land and Space Plan (2020- 2035) (Draft)" (《深圳市国土空间总体规划(2020-2035年)》(草案)) and the land parcels within the park was included in the "urban core zone" with higher strategic position. In addition, South China Logistics Park is now part of the key industrial zones of Longhua District and its upgrade and transformation has been incorporated in the "Outline of the 14th Five-year Plan for National Economic and Social Development and the Long-Range Objectives Through the Year 2035 of Longhua District, Shenzhen" (《深圳市龙华区国民经济和社会发展第十四个五年规划和二〇三五年远景目标纲要》) and the "Proposal for the Promotion of the Renewal and Development of Key Industrial Zones of Longhua District" (《龙华区关于推进重点产业片区更新整备工作方案》).

During the Period, the total revenue and net profit of Shenzhen Expressway Company Limited ("Shenzhen Expressway"), a subsidiary held as to approximately 52% equity interest by the Group, increased by 154% and 4,421%, respectively, as compared to the corresponding period of the previous year to HK$4,838 million and HK$1,595 million, respectively, which was mainly due to the outbreak of the Pandemic and the toll-free policy implemented during part of the corresponding period of the previous year. Moreover, the opening of first phase of the Shenzhen Outer Ring Project at the end of 2020 and the satisfactory development of the environmental protection business during the Period both boosted growth on revenue of Shenzhen Expressway.

While strengthening the core toll road business, Shenzhen Expressway actively explored investment prospects and opportunities in the environmental protection sectors such as reutilization and management of solid waste, as well as clean energy during the Period.
During the Period, Chongqing Derun Environment Company Limited, in which Shenzhen Expressway owns 20% equity interest, continued to focus on markets in Chongqing and its surrounding region and maintained its leadership in Chongqing's water supply and sewage treatment market. Its subsidiary, Chongqing Sanfeng Environment Group Corp., Ltd., was officially listed on the Shanghai Stock Exchange (stock code: 601827) on 5 June 2020.
During the Period, Shenzhen Water Planning & Design Institute Company Limited ("Water Planning & Design Institute"), in which Shenzhen Expressway owns 11.25% equity interest, achieved a continual increase in market share with a year-on-year increase of 42% in newly secured contracts. Water Planning & Design Institute was listed on ChiNext Board of the Shenzhen Stock Exchange (stock code: 301038) in August 2021.
Since the acquisition of the 51% equity interest in Nanjing Wind Power Technology Co., Ltd. ("Nanjing Wind Power Company") in 2019, Shenzhen Expressway has implemented a series of measures to strengthen the internal management of this subsidiary, thereby improving its operations and management in different respects. Nanjing Wind Power Company zealously delivered and commissioned its wind turbines and received sale proceeds of approximately RMB160 million and signed wind farm project orders amounting to nearly 100 megawatt-hours during the Period. Nanjing Wind Power Company will work towards its annual targets and pave the way for its future business development by, among other things, stepping up its technology research and development efforts and diversifying its supply chain.
In addition, Shenzhen Expressway holds the 100% equity interest in Baotou Nanfeng Wind Power Technology Co., Ltd. ("Baotou Nanfeng Company"), which is principally engaged in the investment, operation and management of five wind power generation farms in Inner Mongolia Autonomous Region of China. Baotou Nanfeng Company has abundant wind power resources and enjoys synergies with Nanjing Wind Power Company along the industry chain. During the Period, Baotou Nanfeng Company fed an aggregate of 382,436 megawatt-hours of electricity to the grid, representing a year-on-year increase of 19.06%.
During the Period, Shenzhen Expressway completed the acquisition of the entire equity interest in Mulei County Qianzhi Energy Development Co., Ltd., Mulei County Qianhui Energy Development Co., Ltd. and Mulei County Qianxin Energy Development Co., Ltd. (the "Mulei Wind Power Project"), which operate in Changji Hui Autonomous Prefecture in Xinjiang Uygur Autonomous Region, through a combination of equity transfer and capital injection. After being consolidated by the Group, the Mulei Wind Power Project fed an aggregate of 339,412 megawatt-hours of electricity to the grid during the Period. The Mulei Wind Power Project has ample wind power resources and has wind farm developments with high values. It also enjoys a certain degree of guaranteed electricity sales for being one of the ancillary projects of the Zhundong-Southern Anhui ultra high voltage direct current transmission line in the PRC.
Shenzhen Expressway holds 67.14% equity interest in Bioland Environmental Technologies Corp., Ltd. ("Bioland Environmental Company"), which is one of the key providers of comprehensive organic waste treatment, construction and operation services in the PRC. During the Period, Shenzhen Expressway vigorously improved the construction and operation of Bioland Environmental Company's projects, thereby boosting the year-on-year growth in revenue from its waste treatment operations business. The engineering, procurement and construction (EPC) business also recorded a year-on-year increase, while the equipment manufacturing business achieved significant progress in market expansion. As at the date of this announcement, it has a total of 18 organic waste treatment build-operate-transfer (BOT)/PPP projects with an aggregate designed daily kitchen waste treatment capacity of over 4,000 tonnes in 14 counties and cities in 10 provinces across the country.
Furthermore, in late 2020, Shenzhen Expressway completed the acquisition of 50% equity interest in Shenzhen Shenshan Special Cooperation Zone Qiantai Technology Limited ("Qiantai Company"). With more than 10 proprietary intellectual property rights related to key technologies for recycling electric-vehicle battery and dismantling new energy vehicles. During the Period, Qiantai Company recycled nearly 1,500 end-of-life vehicles by cooperating with relevant companies in the industry to participate in the industry chain. Leveraging its advantageous qualifications, Qiantai Company will engage in different types of collaborations and expand into the upstreams and downstreams decommissioned high power battery markets in the future.

In the second half of 2021, the Group will continue to consolidate and boost the strength of toll road business by accelerating equity investments in the Bay Area Development, refining the operating and management models of existing toll road projects, improving coordination among different projects and enhancing its competitiveness and synergies in core areas, and in turn enhancing its overall operating performance. For the environmental protection business, the Group will continue to focus on management of recycling solid waste, clean energy generation and other segments in order to enlarge its market share and influence in the organic waste disposal segments. At the same time, the Group will seek more suitable investment opportunities in order to seize the opportunities brought by the latest state support of the new energy market, achieve consolidation and synergies between its existing businesses and other resources of the Group, and promote the Group's high-quality sustainable growth.

Invested by the Group under the public-private-partnership (PPP) model, the Shenzhen Outer Ring Project, which will be developed in three phases, is by far the longest toll road in Shenzhen's expressway network and will link up with 10 expressways and 8 first tier highways in the Shenzhen region upon completion.
During the Period, the Group put additional resources and efforts into the construction of the second phase of the Shenzhen Outer Ring Project. The section of the Shenzhen Outer Ring Project from Huiyan Expressway to the north of Shenshan Expressway has been linked up. As at the date of this announcement, around 83% of the first and second phase of the Shenzhen Outer Ring Project as a whole has been completed. At the same time, the Group is actively carrying out the surveying, design and other preliminary preparation work of the third phase of the Shenzhen Outer Ring Project.

On 15 March 2021, Shenzhen Expressway and SIHCL entered into a memorandum of understanding for the intended acquisition of the 71.83% equity interest in Bay Area Development. On 10 August 2021, a wholly owned subsidiary of Shenzhen Expressway and a wholly owned subsidiary of SIHCL entered into a sale and purchase agreement for the acquisition of the 100% equity interest in Shenzhen Infrastructure at the estimated total consideration of no more than HK$10,479 million. The Company will indirectly own as to 71.83% equity interest in Bay Area Development upon completion. The completion of this acquisition is subject to the satisfaction or waiver of certain conditions precedent, including the approval to be obtained at the general meetings of the Company and Shenzhen Expressway. For details, please refer to the announcement of the Company dated 10 August 2021.
Bay Area Development has interests in quality road assets such as Guangshen Expressway and Guangzhu West Expressway, which are located in the heart of the Guangdong-Hong Kong-Macao Greater Bay Area. Upon completion, the acquisition will reinforce the Group's core competence in expressway investment, construction and operation, regional market share in the expressway industry, future profitability and cash flows, and it can also actively promote the transformation and expansion of Guangzhou-Shenzhen Expressway and land development through a combination of the land along its alignment development plan, unlock the value of the land along its alignment development, achieving sustainable long-term development, and further enhancing the development and market value of the Group which is in line with the development strategy of the Company and in the interest of the Company and its shareholders as a whole.

During the Period, the Pandemic permeated across the world and dealt a heavy blow to the passenger air transport industry resulting in a plunge in demand for air travel. Nevertheless, the tight and effective control of the Pandemic in the PRC allowed the domestic air travel market to gradually recover. Both passenger rides and passenger transport volume recorded increase as compared to the corresponding period of the previous year. During the Period, total revenue of Shenzhen Airlines grew by 46% as compared to the corresponding period of the previous year to RMB9,681 million (equivalent to HK$11,639 million) (2020: RMB6,641 million (equivalent to HK$7,304 million).
However, the resurgence of the Pandemic in the Guangzhou and Shenzhen regions in June 2021 and other external factors offset part of the revenue growth which had a certain impact on the profitability of Shenzhen Airlines. As a result, net loss of Shenzhen Airlines for the Period amounted to RMB1,366 million (equivalent to HK$1,643 million) (2020: net loss of RMB2,227 million (equivalent to HK$2,451 million), representing a year-on-year decrease of 39%. The Group's share of losses incurred by Shenzhen Airlines amounted to approximately HK$811 million (2020: loss of HK$1,223 million) during the Period.
In the second half of 2021, it is expected that the Pandemic will gradually subside across the globe as vaccination rate increases. The domestic and foreign air transport demand are thus expected to recover steadily. Shenzhen Airlines will bolster its competitiveness and seize the opportunities brought by the international and domestic "Dual Circulation" economic strategy by keeping abreast of market dynamics, converting passenger flights into cargo flights, strengthening cost control, rationalizing its capacity allocation and improving its key market network.

On 9 November 2020, the Group entered into a capital increase agreement with Air China Cargo Co., Ltd. ("Air China Cargo") to acquire a 10% equity interest in Air China Cargo by way of capital contribution of approximately RMB1,565 million. This transaction is being reviewed by regulatory authorities. At the moment, the Pandemic is still wreaking havoc across the world. As air transportation is the most time-effective way to deliver emergency supplies and maintain supply chain, air cargo will have a rapidly growing demand. Through the strategic equity investment in Air China Cargo, the Group will be able to quickly enter the air cargo industry, which has high entry barrier and is highly monopolistic, in order to extend its integrated logistics service capability and achieve a new profit stream.

In 2020, the Group set up a joint venture with Sinotrans Limited to operate the Bay Area Express（湾区号）in Shenzhen, a train running between China and Europe. The launch of the Bay Area Express established a new trade route linking Shenzhen and countries along the "Belt and Road Initiative" and facilitates the stable flow of foreign investment and trade. It also represents a key action of the Shenzhen Municipal Government to integrate itself into the "Belt and Road Initiative" and promote the "Building of the Guangdong-Hong Kong-Macao Greater Bay Area and the Pilot Demonstration Zone of Socialism with Chinese Characteristics" (also called the "development of two regions"). Spanning across 13,438 kilometers, the Bay Area Express sets off from Shenzhen to Duisburg, Germany via Dzungarian Gate in Xinjiang, serving one of the longest train routes of the PRC between China and Europe. Three trains run this route every week. In the first half of 2021, this train between China and Europe operated smoothly and its volume of rail traffic demonstrated growth momentum. Leveraging the Bay Area Express which runs between China and Europe, the logistics parks of the Group have commenced one-stop services such as cargo consolidation and packaging, agent booking service, loading and unloading, warehousing and transportation. In particular, the fast-growing bulk cargo consolidation and packaging operation can increase the utilization rate of warehouses, create synergy among logistics parks of the Group and generate new value-adding income. Furthermore, it will benefit the freight volume of the Pinghunan integrated logistics hub and the development of its various value-added services by using the Pinghunan Railway Station as the terminal of the train between China and Europe. This will in turn provide a solid foundation for the long-term stable growth of the Group's logistics business.

In 2020, the Group and China Railway Guangzhou Group Co., Ltd. entered into a cooperation agreement, pursuant to which the parties agreed to establish a joint venture to invest in and develop the Pinghunan Integrated Logistics Hub Project（平湖南综合物流枢纽项目）(the "Pinghunan Project"). The joint venture company was incorporated in August 2021. In September 2019, the Pinghunan Project was selected as one of the first batch of 23 national integrated logistics hub projects to be developed as a national logistics hub for business by the National Development and Reform Commission of the PRC and the Ministry of Transport of the PRC. The Pinghunan Project is positioned to meet the demand for distribution services for international, domestic and regional commercial and trading activities as well as demand for distribution services from largescale customers by providing logistics and related value-added services, such as commodity warehousing, intermodal delivery and distribution services, so as to play a major role and become an important platform and backbone hub in the national logistics network.
Being the first logistics park to be jointly developed by the Group and a railway enterprise, the Pinghunan Project has a site area of approximately 900,000 square meters and an expected gross floor area of approximately 800,000 square meters (the final gross floor area is subject to the approval by the relevant governmental authorities of Shenzhen). The first phase of this project will be dedicated to operations for provision of warehouse logistics, port container depot and rail container transportation services. The second phase of the project involves the construction of a modern logistics park over the railway freight station. The Group plans to develop this project into a leading intermodal logistics hub in the country so as to diversify the logistics business of the Group. Building on the unique rail freight transportation terminal in Shenzhen as well as the nearby infrastructure of high-quality ancillary expressways and ports, the project is expected to generate stable income from the leasing of logistics facilities, in addition to instigating e-commerce express, urban distribution, cold chain, rail freight and other supply chain services. It can also coordinate and interact with the Group's integrated logistics hub network in cities across the nation in order to derive better synergies and generate considerable income for the Group.
In addition, the Pinghunan Project will be designed with an aim to enable seamless connection between road and railway logistics facilities. The use of expressways and railways for freight consolidation and distribution can greatly enhance railway freight consolidation capacity and service efficiency, transfer throughput from roads to railways, reduce the traffic of roads connecting ports and thus pollutant emissions, thereby enhancing the improvement of regional transportation system, which are important for improving logistics efficiency and reducing logistics costs and in line with green urban development concepts.
Being one of the major cities in the Guangdong-Hong Kong-Macao Greater Bay Area, the supply of logistics and warehousing land in Shenzhen has become scarce whilst demand grows rapidly. The Group's Pinghunan Project pioneered the model of "obtaining ownership rights in multi-story logistics facilities to be constructed over the railway freight station", integrating development of "rail transportation and modern logistics". It will become a national construction benchmark of the concentrated use of land resources for the whole nation. The implementation of the Pinghunan Project will allow the Group to accumulate high-quality long-term efficient assets for its future development, enlarge the scale and network coverage of its logistics operations, and strengthen its market position in the Guangdong-Hong Kong-Macao Greater Bay Area as well as the rest of the country. Thus, the development of the Pinghunan Project is in line with the Group's business development strategy and planning.
Meanwhile, the Group plans to increase its efforts in the development of a network of railway logistics resources and will actively develop new projects such as the railway freight stations in various cities like Changsha, Guangzhou and Foshan.
The Group is in strategic cooperation with, among others, the logistics hub of the Shenzhen airport, which is one of the second batch of national logistics hubs. In addition to the road and railway intermodal transportation of Pinghunan Project, air cargo services will also be added to the logistics network of the Group in order to establish a logistics network covering "road, railway and air" for the Shenzhen region, facilitate the integration of multiple transportation modes, provide comprehensive logistics services, realise network synergy and enhance operating efficiency.

During the Period, the Group entered into a capital injection agreement to invest in, and will become the third largest shareholder of China Comservice, which is the unique integrated logistics enterprise in the telecommunications industry with a "5A" qualification in the PRC. Under this cooperation, the Group can synchronize and connect its logistics warehouse network with that of China Comservice. On the other hand, both parties may also complement each other in different aspects and realize a win-win situation by jointly developing high-end logistics value-added services in emerging sectors, such as information and communications, data center, etc