Core Viewpoint - Shipping stocks have experienced significant declines due to weak demand for container shipping in China, leading to a continued adjustment in market freight rates [1] Group 1: Stock Performance - China COSCO Shipping Energy Transportation (01138) fell by 7.07%, trading at HKD 9.07 [1] - Seaspan Corporation (01308) decreased by 5.61%, trading at HKD 28.92 [1] - Orient Overseas International (00316) dropped by 4.12%, trading at HKD 128.1 [1] - China COSCO Shipping Holdings (01919) declined by 3.98%, trading at HKD 13.27 [1] Group 2: Market Conditions - The Shanghai Shipping Exchange reported a 14.3% decrease in the Shanghai Export Container Freight Index, which is now at 1198.21 points [1] - European routes are facing weak demand growth, resulting in declining spot market booking prices [1] - North American routes have seen a decrease in demand since early September, with significant drops in spot market booking prices [1] - The Persian Gulf route is experiencing weak demand, leading to substantial adjustments in spot market freight rates [1] - The Australia-New Zealand route shows stable demand, but market freight rates continue to decline [1] - South American routes are under pressure due to weak demand growth, with spot market booking prices continuing to fall [1]

Group 1 - The core point of the news is that Liu Keceng, an executive director of Haifeng International (01308.HK), reduced his shareholding by selling 1.061 million shares at an average price ranging from HKD 29.829 to HKD 30.7218, totaling approximately HKD 32.16 million [1] - After the reduction, Liu Keceng's total shareholding decreased to 45,371,806 shares, resulting in a drop in his ownership percentage from 1.72% to 1.68% [1]

Core Viewpoint - The Hong Kong High Dividend ETF (159302) has shown a slight increase in its closing price and has experienced a decrease in both share count and total assets since the beginning of the year [1][2]. Fund Overview - The Hong Kong High Dividend ETF (159302) was established on August 23, 2024, with an annual management fee of 0.50% and a custody fee of 0.10% [1]. - As of September 10, 2024, the fund's latest share count is 87.8 million, and the total asset size is 117 million yuan [1]. - The fund's performance benchmark is the China Securities Hong Kong Stock Connect High Dividend Investment Index return (adjusted for valuation exchange rate) [1]. Performance Metrics - Year-to-date, the fund has seen a 19.30% decrease in share count and a 3.14% decrease in total assets compared to December 31, 2024 [1]. - Over the last 20 trading days, the cumulative trading amount is 217 million yuan, with an average daily trading amount of 10.84 million yuan [1]. - Since the beginning of the year, the cumulative trading amount over 170 trading days is 2.135 billion yuan, with an average daily trading amount of 12.56 million yuan [1]. Fund Management - The current fund managers are Li Yixuan and Zhang Yichi, both managing the fund since its inception, with a return of 33.32% during their tenure [2]. Top Holdings - The top holdings of the fund include: - COSCO Shipping Holdings: 8.68% of the portfolio - Yancoal Australia: 6.17% - Seaspan Corporation: 4.28% - Orient Overseas International: 4.23% - Minsheng Bank: 4.22% - CITIC Bank: 4.07% - China Petroleum: 3.41% - Guotai Junan: 3.41% - Agricultural Bank of China: 3.30% - CNOOC: 3.19% [2][3].

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 海豐國際控股有限公司 呈交日期: 2025年9月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01308 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | HKD | | 0.1 HKD | | 500,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.1 HKD | | 500,000,000 | 本月底法定/註冊股本總額： HKD 500,00 ...

Group 1: Industry Overview - The oil shipping sector is currently undervalued, with companies showing resilience and dividend support, suggesting a focus on left-side opportunities and seasonal demand improvements [1] - Recent shipping price updates indicate a rebound in container shipping rates for the US routes, while European routes have declined. The SCFI index shows a week-on-week change of +17.0% for US routes and -11.2% for European routes [2] - The dry bulk shipping market has seen a strong recent increase in freight rates, with the BDI index up by 7.0% week-on-week, indicating potential demand improvements [2] Group 2: Company Focus - Companies such as COSCO Shipping Energy (中远海能), China Merchants Energy Shipping (招商轮船), and China Merchants Jinling (招商南油) are highlighted as key players to watch due to their potential for growth and dividend yields [1] - High-dividend private enterprises like Seaspan (海丰国际) and Zhonggu Logistics (中谷物流) are recommended for their short-term and long-term value propositions, particularly during the peak season in the second half of the year [1] - The small container ship supply in the Asian region is expected to remain tight, with only a 1-2% annual increase in supply over the next three years, while the proportion of older ships (over 25 years) is at 11.2% [3] Group 3: Market Dynamics - The average capacity of vessels in the Asian region is concentrated in larger global operators, with the top ten companies holding about 70% of the capacity share, indicating a high chartering ratio [3] - The deployment of vessels in Asia is primarily focused on larger ships (3,000 TEU and above), which creates a competitive landscape with companies like Seaspan focusing on smaller vessels for regional routes [3]

Group 1: Industry Overview - The oil shipping sector is currently undervalued, with companies showing elasticity and dividend support, suggesting a focus on left-side opportunities and seasonal demand improvements [1] - Recent shipping price updates indicate a rebound in container shipping prices for the US routes, while European routes have declined; SCFI prices changed by +17.0% for US, -11.2% for Europe, and +5.3% for Southeast Asia week-on-week [1] - The dry bulk index (BDI) has shown a week-on-week increase of +7.0%, with specific indices like BCI and BSI rising by +8.2% and +4.3% respectively [1] Group 2: Supply Dynamics - There is a persistent tight supply of small container ships in the Asian region, with only a 1-2% annual increase in supply expected over the next three years, while the proportion of ships over 25 years old has reached 11.2% [2] - The majority of new small container ships are being ordered for routes bypassing the Red Sea, with limited new supply expected in the Asian region, which only saw a 2.2% increase in small ship capacity [2] - The top ten shipping companies in the Asian region hold approximately 70% of the capacity share, with a high reliance on chartered vessels, indicating a competitive landscape focused on larger vessels [3]

SITC International Holdings Company Limited 海豐國際控股有限公司 (Incorporated in the Cayman Islands with limited liability) ( 於開曼群島註冊成立的有限公司 ) (Stock Code: 股份代號: 1308) Dear non-registered shareholder(s), SITC International Holdings Company Limited (the "Company") – Notice of Publication of 2025 Interim Report (the "Current Corporate Communications") The Current Corporate Communications of the Company have been published in English and Chinese languages and are available on the website of The Stock Exchange of Hong K ...

SITC International Holdings Company Limited 海豐國際控股有限公司 (Incorporated in the Cayman Islands with limited liability) ( 於開曼群島註冊成立的有限公司 ) (Stock Code: 股份代號: 1308) 27 August 2025 Dear registered shareholder(s), SITC International Holdings Company Limited (the "Company") – Notice of Publication of 2025 Interim Report (the "Current Corporate Communications") The Current Corporate Communications of the Company have been published in English and Chinese languages and are available on the website of The Stock Exchang ...

[Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of the company's governance structure, including its board and committees, along with essential corporate details such as registration, listing, and key financial partners [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, supported by audit, remuneration, nomination, risk management, disclosure, and sustainability committees to ensure effective corporate governance - The Board members include executive directors such as **Yang Xianxiang (Chairman)** and **Xue Mingyuan (CEO)**, non-executive directors like **Yang Xin (Vice Chairman)**, and independent non-executive directors such as **Xie Shaoyi (Chief Independent Non-Executive Director)**[4](index=4&type=chunk) - Committees include the Audit Committee (Chairman: **Liao Jiaying**), Remuneration Committee (Chairman: **Xie Shaoyi**), Nomination Committee (Chairman: **Hu Mantian**), Risk Management Committee (Chairman: **Xie Shaoyi**), Disclosure Committee (Chairman: **Hu Mantian**), and Sustainability Committee (Chairman: **Yang Xin**)[4](index=4&type=chunk) [Company Basic Information](index=3&type=section&id=Company%20Basic%20Information) The company is registered in the Cayman Islands with its headquarters in Hong Kong, listed on The Stock Exchange of Hong Kong Limited under stock code 01308, and partners with major banks, with Ernst & Young as its auditor - The company's registered office is in the Cayman Islands, with its headquarters located in Shui On Centre, Wan Chai, Hong Kong[4](index=4&type=chunk) - Shares are listed on The Stock Exchange of Hong Kong Limited, with stock code **01308**[5](index=5&type=chunk) - Key banking partners include ANZ Bank, Bank of China, Citibank, Standard Chartered Bank, and others, with **Ernst & Young** as the auditor[5](index=5&type=chunk) [Financial and Operational Summary](index=5&type=section&id=Financial%20and%20Operational%20Summary) For the six months ended June 30, 2025, the company achieved significant growth in profit attributable to shareholders, number of operating container vessels, container shipping volume, and net cash flow from operating activities, reflecting robust financial and operational performance 2025 H1 Financial and Operational Summary | Metric | 2025 H1 (Thousand USD/Vessels/TEUs) | 2024 H1 (Thousand USD/Vessels/TEUs) | | :--- | :--- | :--- | | Profit attributable to shareholders | 629,995 | 350,674 | | Number of operating container vessels | 119 | 108 | | Container shipping and extended logistics business volume | 1,829,665 | 1,705,164 | | Net cash flow from operating activities | 708,981 | 394,317 | [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the company's business operations, financial performance, liquidity, and capital resources, along with other significant information for the reporting period [Overview and Business Review](index=6&type=section&id=Overview%20and%20Business%20Review) SITC International, a leading Asian shipping and logistics group, deepened its focus on the Asian market in H1 2025, offering container shipping and integrated logistics services, expanding its fleet, trade routes, and port coverage, leading to significant revenue growth driven by increased volume and average freight rates - The Group's business encompasses container shipping, freight forwarding, ship agency, container yard, warehousing services, land leasing, and other services, with a focus on the **Asian market**[11](index=11&type=chunk) - As of June 30, 2025, the Group operated **82 trade routes**, covering **82 major ports** including mainland China, Japan, South Korea, Taiwan, Hong Kong, Vietnam, and Thailand[12](index=12&type=chunk) - The fleet consists of **119 vessels** with a total capacity of **185,787 TEUs**, of which **101 are self-owned vessels**, with an average age of **9.4 years**[12](index=12&type=chunk) 2025 H1 Business Growth | Metric | 2025 H1 | 2024 H1 | Y-o-Y Growth | | :--- | :--- | :--- | :--- | | Revenue (Million USD) | 1,664.5 | 1,300.5 | 28.0% | | Container Volume (TEUs) | 1,829,665 | 1,705,164 | 7.3% | | Average Freight Rate (excluding slot exchange fees) (USD/TEU) | 776.4 | 632.4 | 22.8% | [Financial Review](index=8&type=section&id=Financial%20Review) In H1 2025, the company achieved substantial growth in both revenue and gross profit, primarily driven by increased shipping volume and average freight rates; despite rising cost of sales, administrative expenses, and finance costs, profit for the period significantly increased, demonstrating strong profitability 2025 H1 Key Financial Data | Metric | 2025 H1 (Thousand USD) | 2024 H1 (Thousand USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 1,664,489 | 1,300,521 | 28.0% increase | | Cost of sales | (995,058) | (897,906) | 10.8% increase | | Gross profit | 669,431 | 402,615 | 66.3% increase | | Gross profit margin | 40.2% | 31.0% | 9.2 percentage points increase | | Other income and gains, net | 37,822 | 20,228 | 87.0% increase | | Administrative expenses | (67,809) | (63,824) | 6.2% increase | | Finance costs | (8,466) | (7,345) | 15.3% increase | | Share of profit of joint ventures | 13,348 | 10,491 | 27.2% increase | | Profit before tax | 643,607 | 362,378 | 77.6% increase | | Profit for the period | 633,448 | 352,846 | 79.5% increase | - The increase in other income and gains, net, was primarily due to higher gains from the disposal of container vessels, recording approximately **13.8 million USD** in H1 2025 compared to approximately **3.4 million USD** in the same period of 2024[18](index=18&type=chunk) - The rise in administrative expenses was mainly attributable to an overall increase in **staff costs**[20](index=20&type=chunk) - The increase in finance costs was primarily due to higher interest on **lease liabilities**[22](index=22&type=chunk) [Liquidity, Financial and Capital Resources](index=12&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) As of June 30, 2025, the company's total assets and cash and cash equivalents increased, while total liabilities slightly decreased, maintaining healthy current and gearing ratios, indicating robust liquidity and financial structure 2025 H1 Liquidity and Financial Position | Metric | June 30, 2025 (Million USD) | December 31, 2024 (Million USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total assets | 3,339.9 | 3,198.1 | 4.4% increase | | Total liabilities | 753.2 | 776.6 | 3.0% decrease | | Cash and cash equivalents | 799.0 | 744.5 | 7.3% increase | | Current ratio | 2.3 | 1.9 | 0.4 points increase | | Gearing ratio | 0% | 0.9% | 0.9 percentage points decrease | - The company holds approximately **58.6 million USD** in secured interest-bearing bank borrowings with diversified repayment schedules[28](index=28&type=chunk) - The company manages foreign exchange risk by closely monitoring foreign currency exchange rate fluctuations, with **no foreign currency hedging instruments** utilized during the period[28](index=28&type=chunk) [Other Significant Information](index=12&type=section&id=Other%20Significant%20Information) In H1 2025, the company had no significant contingent liabilities, with bank borrowings secured by vessels and land; employee numbers and costs increased, and a new share scheme was adopted for incentives, with future plans to continue investing in vessels, containers, and logistics projects - As of June 30, 2025, the Group had **no significant contingent liabilities**[30](index=30&type=chunk) - Bank borrowings are secured by vessels with a net book value of approximately **120.3 million USD** and land mortgages of **10.4 million USD**[31](index=31&type=chunk) Employee and Remuneration Information | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of full-time employees (excluding crew) | 2,252 | 2,132 | | Employee costs (including directors' emoluments) (Million USD) | 103.1 | 97.4 | - In H1 2025, **2 new container vessels** were delivered, and options were exercised to construct **2 additional container vessels** for a total consideration of **58.0 million USD**[33](index=33&type=chunk) - The company plans to continue purchasing container vessels and containers, and investing in logistics projects, with internal financial resources and bank borrowings expected to be sufficient to meet funding requirements[34](index=34&type=chunk) [Other Information](index=15&type=section&id=Other%20Information) This section details the interim dividend declaration, various share schemes for employee incentives, directors' and major shareholders' interests, corporate governance practices, and information on share repurchases and public float [Interim Dividend](index=15&type=section&id=Interim%20Dividend) The Board has resolved to declare an interim dividend for the six months ended June 30, 2025, representing a significant increase compared to the same period last year Interim Dividend Declaration | Period | Dividend per share (HKD) | Dividend per share (USD equivalent) | | :--- | :--- | :--- | | 2025 H1 | 1.30 | 0.17 | | 2024 H1 | 0.72 | 0.09 | - The dividend is expected to be paid on or before **September 16, 2025**[36](index=36&type=chunk) [Share Schemes](index=15&type=section&id=Share%20Schemes) The company maintains share incentive schemes to attract and retain talent and foster business development, with the expired Post-IPO Share Option Scheme, the superseded Share Award Scheme, and the newly adopted Share Scheme forming its equity incentive framework [Post-IPO Share Option Scheme](index=15&type=section&id=Post-IPO%20Share%20Option%20Scheme) This scheme aimed to reward contributors to the Group, with a maximum issuance of 10% of issued share capital; it expired on September 9, 2020, and as of June 30, 2025, no outstanding share options remained unexercised - The scheme was adopted on **September 10, 2010**, with a maximum of **260,000,000 shares** issuable, representing **10%** of the then-issued share capital[38](index=38&type=chunk) - The exercise price of share options is the highest of the closing price on the grant date, the average closing price for the five business days immediately preceding the grant date, and the nominal value of the shares[39](index=39&type=chunk) - The scheme expired on **September 9, 2020**, and as of June 30, 2025, the company had **no outstanding share options** under this scheme[40](index=40&type=chunk)[42](index=42&type=chunk) [Share Award Scheme](index=18&type=section&id=Share%20Award%20Scheme) This scheme aimed to recognize, incentivize, and retain eligible participants while attracting talent to the Group; the trustee could not hold more than 5% of the total issued shares, and although superseded by a new scheme on April 26, 2024, some awards remain unvested - The Share Award Scheme was adopted on **September 13, 2017**, to recognize, incentivize, and retain employees and non-executive directors, and to attract suitable talent[43](index=43&type=chunk)[44](index=44&type=chunk) - At any time, the trustee under the Share Award Scheme could not hold more than **5%** of the total issued shares[43](index=43&type=chunk) - The Share Award Scheme was superseded by the New Share Scheme on **April 26, 2024**[45](index=45&type=chunk) Unvested Awards under Share Award Scheme as of June 30, 2025 | Grantees and Positions | Number of unvested awards as of January 1, 2025 | Number of awards vested during the period | Number of unvested awards as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Directors | 6,360,971 | 2,135,000 | 4,225,971 | | Other employees | 27,617,812 | 10,639,526 | 16,730,158 | | **Total** | **33,978,783** | **12,774,526** | **20,956,129** | [New Share Scheme](index=21&type=section&id=Share%20Scheme%20(New)) The New Share Scheme, adopted on April 26, 2024, aims to provide incentives for the Group's business development and success, featuring share limits, individual quotas, and specified exercise and vesting periods for share options - The New Share Scheme was adopted on **April 26, 2024**, to provide incentives to eligible participants and promote the Group's business development[48](index=48&type=chunk)[49](index=49&type=chunk) - The total number of shares authorized under the scheme shall not exceed **10%** of the issued shares on the adoption date, amounting to **268,265,336 shares**[51](index=51&type=chunk) - Awards granted to independent non-executive directors or substantial shareholders shall not exceed **0.1%** of the issued shares within a 12-month period; awards to other directors or chief executives shall also not exceed **0.1%** of the issued shares within 12 months[52](index=52&type=chunk) - The exercise price of share options shall not be less than the highest of the closing price on the offer date, the average closing price for the five business days immediately preceding the offer date, and the nominal value of the shares[59](index=59&type=chunk) Unvested Share Awards under New Share Scheme as of June 30, 2025 | Grantees and Positions | Number of unvested share awards as of January 1, 2025 | Number of share awards granted during the period | Number of unvested share awards as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Directors | 2,220,000 | 3,715,000 | 5,935,000 | | Other employees and connected entity participants | 5,362,548 | 10,285,000 | 15,580,320 | | **Total** | **7,582,548** | **14,000,000** | **21,515,320** | - In H1 2025, a total of **14,000,000 share awards** were granted to selected participants under the share scheme, with **12,729,108** to be settled by new shares[65](index=65&type=chunk) [Directors' and Major Shareholders' Interests](index=29&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests) The report discloses the long positions of directors and major shareholders in the company's shares and related shares as of June 30, 2025, including beneficial owners, controlled corporate interests, and trust beneficiaries, with Ms. Yang Xin holding the largest proportion through her capacity as a trust beneficiary Directors' Interests in Shares (June 30, 2025) | Director's Name | Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Yang Xianxiang | Interest in controlled corporation/Beneficial owner | 243,531,246 | 9.02% | | Liu Kecheng | Interest in controlled corporation/Beneficial owner | 44,842,356 | 1.66% | | Lai Zhiyong | Beneficiary of Go Thrive Trust/Beneficial owner | 3,457,205 | 0.13% | | Xue Mingyuan | Beneficiary of Go Thrive Trust/Beneficial owner | 4,714,618 | 0.17% | | Yang Xin | Beneficiary of trust | 1,097,794,544 | 40.66% | | Xie Shaoyi | Beneficial owner | 14,000 | 0.00% | | Liao Jiaying | Beneficial owner | 5,000 | 0.00% | | Hu Mantian | Beneficial owner | 7,000 | 0.00% | Directors' Interests in Related Shares (June 30, 2025) | Director's Name | Nature of Interest | Number of shares to be vested under Share Award Scheme | Approximate percentage of shareholding involved in shares to be vested under Share Award Scheme | | :--- | :--- | :--- | :--- | | Yang Xianxiang | Beneficiary of trust | 4,233,317 | 0.16% | | Liu Kecheng | Beneficiary of trust | 1,590,450 | 0.06% | | Xue Mingyuan | Beneficiary of trust | 2,965,994 | 0.11% | | Lai Zhiyong | Beneficiary of trust | 1,146,210 | 0.04% | | Yang Xin | Beneficiary of trust | 155,000 | 0.01% | | Xie Shaoyi | Beneficiary of trust | 28,000 | 0.00% | | Liao Jiaying | Beneficiary of trust | 21,000 | 0.00% | | Hu Mantian | Beneficiary of trust | 21,000 | 0.00% | Major Shareholders' Interests (June 30, 2025) | Name | Capacity | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Yang Shaopeng | Settlor of discretionary trust | 1,097,794,544 | 40.66% | | TMF (Cayman) Ltd. | Trustee | 1,097,794,544 | 40.66% | | Better Master Limited | Interest in controlled corporation | 1,097,794,544 | 40.66% | | Resourceful Link Management Limited | Beneficial owner | 1,097,794,544 | 40.66% | | Liu Rongli | Spouse's interest | 1,097,794,544 | 40.66% | | Jixiang Limited | Beneficial owner | 233,814,950 | 8.66% | [Corporate Governance](index=32&type=section&id=Corporate%20Governance) The company is committed to maintaining stringent corporate governance practices, confirming compliance with the Corporate Governance Code in Appendix C1 of the Listing Rules for H1 2025, with the Audit Committee having reviewed interim results and financial reporting procedures - For the six months ended June 30, 2025, the Board believes the company has complied with the code provisions of the Corporate Governance Code set out in **Appendix C1 of the Listing Rules**[73](index=73&type=chunk) - Directors have confirmed compliance with the **Model Code for Securities Transactions by Directors of Listed Issuers** as set out in Appendix C3 of the Listing Rules[74](index=74&type=chunk) - The Audit Committee has reviewed the Group's adopted accounting principles and practices, and discussed internal controls and financial reporting matters, including this interim report[77](index=77&type=chunk) [Share Repurchases and Public Float](index=33&type=section&id=Share%20Repurchases%20and%20Public%20Float) The company did not purchase, redeem, or sell any listed securities in H1 2025 and consistently maintained the public float as required by the Listing Rules - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's **listed securities**[75](index=75&type=chunk) - The company has consistently maintained the **public float** as required by the Listing Rules throughout the six months ended June 30, 2025[76](index=76&type=chunk) [Interim Condensed Consolidated Financial Information](index=34&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Information) This section presents the company's interim condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows, along with detailed explanatory notes [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=34&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company achieved substantial growth in both revenue and profit for the period, with other comprehensive income shifting from a loss to a gain, significantly boosting total comprehensive income, and both basic and diluted earnings per share showing marked improvement Summary of Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 H1 (Thousand USD) | 2024 H1 (Thousand USD) | | :--- | :--- | :--- | | Revenue | 1,664,489 | 1,300,521 | | Gross profit | 669,431 | 402,615 | | Profit before tax | 643,607 | 362,378 | | Profit for the period | 633,448 | 352,846 | | Other comprehensive income/(loss) for the period | 13,990 | (3,519) | | Total comprehensive income for the period | 647,438 | 349,327 | | Basic earnings per share attributable to shareholders of the company (USD) | 0.24 | 0.13 | | Diluted earnings per share attributable to shareholders of the company (USD) | 0.23 | 0.13 | [Interim Condensed Consolidated Statement of Financial Position](index=37&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and total equity both increased, with a significant rise in net current assets, demonstrating a robust asset base and healthy financial structure Summary of Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (Thousand USD) | December 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Total non-current assets | 2,221,864 | 2,174,554 | | Total current assets | 1,118,002 | 1,023,519 | | Total current liabilities | 485,105 | 544,756 | | Net current assets | 632,897 | 478,763 | | Total non-current liabilities | 268,133 | 231,813 | | Net assets (Total equity) | 2,586,628 | 2,421,504 | [Interim Condensed Consolidated Statement of Changes in Equity](index=40&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity increased due to profit for the period, other comprehensive income, and share issuance, while decreasing from dividend payments and share repurchases, resulting in a net equity growth Summary of Interim Condensed Consolidated Statement of Changes in Equity | Equity Item | January 1, 2025 (Thousand USD) | Changes during the period (Thousand USD) | June 30, 2025 (Thousand USD) | | :--- | :--- | :--- | :--- | | Issued share capital | 34,641 | 165 | 34,806 | | Share premium account | 411,350 | 34,134 | 445,484 | | Shares held under share award scheme account | (100,774) | 3,838 | (96,936) | | Share-based payment reserve | 73,251 | (32,819) | 40,432 | | Retained profits | 2,007,714 | 142,680 | 2,150,394 | | **Total equity attributable to shareholders of the company** | **2,404,236** | **160,304** | **2,564,540** | | Non-controlling interests | 17,268 | 4,820 | 22,088 | | **Total equity** | **2,421,504** | **165,124** | **2,586,628** | - Profit for the period was **629,995 thousand USD**, and other comprehensive income was **12,774 thousand USD**[87](index=87&type=chunk) - Final dividend of **487,315 thousand USD** for 2024 was paid[87](index=87&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=42&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the company experienced a significant increase in net cash flow from operating activities, a shift from net outflow to net inflow in investing activities, but an increased net outflow from financing activities, ultimately leading to a net increase in cash and cash equivalents Summary of Interim Condensed Consolidated Statement of Cash Flows | Cash Flow Activity | 2025 H1 (Thousand USD) | 2024 H1 (Thousand USD) | | :--- | :--- | :--- | | Net cash flow from operating activities | 708,981 | 394,317 | | Net cash flow from/(used in) investing activities | 7,311 | (138,351) | | Net cash flow used in financing activities | (624,154) | (199,358) | | Net increase in cash and cash equivalents | 92,138 | 56,608 | | Cash and cash equivalents at end of period | 230,236 | 176,458 | - The positive shift in net cash flow from investing activities was primarily due to increased proceeds from the disposal of property, plant and equipment, and withdrawal of time deposits[90](index=90&type=chunk) - The increased net cash outflow from financing activities was mainly attributable to a significant increase in **dividends paid**[92](index=92&type=chunk) [Notes to the Financial Information](index=44&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering company basic information, accounting policies, operating segments, revenue, expenses, dividends, earnings per share, asset and liability items, capital commitments, related party transactions, and fair value of financial instruments, offering deeper explanations and supplementary information for the financial statements [Company Information and Accounting Policies](index=44&type=section&id=1.1%20Company%20Information) The company is registered in the Cayman Islands, primarily engaged in integrated shipping and logistics services; this interim financial information is prepared in accordance with HKAS 34, with the first-time adoption of revised HKFRSs having no significant impact on the financial data - The company is a limited liability company registered in the Cayman Islands, primarily engaged in providing **integrated shipping and logistics services**[93](index=93&type=chunk) - This interim condensed consolidated financial information is prepared in accordance with **Hong Kong Accounting Standard 34** issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of Appendix D2 of the Listing Rules[94](index=94&type=chunk) - The amendments to **HKAS 21 'Lack of Exchangeability'**, adopted for the first time in this period, had **no impact** on the interim condensed consolidated financial information[95](index=95&type=chunk)[96](index=96&type=chunk) [Operating Segments and Revenue Analysis](index=46&type=section&id=2.%20Operating%20Segment%20Information) The company operates a single segment: integrated shipping and logistics services, with revenue detailed by service type (container shipping and extended logistics, other container logistics) and geographical market (Greater China, Southeast Asia, Japan, etc.), primarily recognized when services are rendered - The Group has only one single operating segment, which is the provision of container shipping, freight forwarding, ship agency, container yard, warehousing services, land leasing, and other services[97](index=97&type=chunk) Revenue Breakdown (2025 H1) | Service Type | Amount (Thousand USD) | Geographical Market | Amount (Thousand USD) | | :--- | :--- | :--- | :--- | | Container shipping and extended logistics revenue | 1,512,689 | Greater China | 820,391 | | Other container logistics revenue | 150,696 | Southeast Asia | 452,476 | | Other rental income | 1,104 | Japan | 287,233 | | **Total** | **1,664,489** | Others | 103,285 | | | | **Total** | **1,664,489** | - Container shipping and extended logistics revenue is recognized over time as services are provided, while other container logistics revenue is recognized at a point in time when services are provided[101](index=101&type=chunk)[102](index=102&type=chunk) [Other Income and Expense Analysis](index=49&type=section&id=4.%20Other%20Income%20and%20Gains%2F(Losses)%20Net) This section details the composition of other income and gains/losses, net, including bank interest income, government grants, and gains from property, plant, and equipment disposal; finance costs primarily comprise bank borrowings interest and lease liabilities interest; profit before tax considers factors like bunker fuel costs, depreciation, and impairment losses, while income tax expense is calculated based on tax rates in different countries/regions Other Income and Gains/(Losses) Net (2025 H1) | Item | Amount (Thousand USD) | | :--- | :--- | | Bank interest income | 19,782 | | Government grants | 772 | | Net gain on disposal of property, plant and equipment | 13,874 | | Net exchange differences | 3,980 | | **Total** | **37,822** | Finance Costs (2025 H1) | Item | Amount (Thousand USD) | | :--- | :--- | | Interest on bank borrowings | 3,288 | | Interest on lease liabilities | 5,097 | | **Total** | **8,466** | Items Deducted From/(Credited To) Profit Before Tax (2025 H1) | Item | Amount (Thousand USD) | | :--- | :--- | | Bunker fuel consumed | 150,190 | | Depreciation of property, plant and equipment | 2,276 | | Depreciation of right-of-use assets | 1,472 | | Net impairment loss on trade receivables | 516 | Income Tax Expense (2025 H1) | Region | Amount (Thousand USD) | | :--- | :--- | | Mainland China | 3,206 | | Hong Kong | 254 | | Other countries/regions | 6,699 | | **Total** | **10,159** | [Dividends and Earnings Per Share](index=53&type=section&id=8.%20Interim%20Dividend) The Board has declared an interim dividend of HKD 1.30 per share; basic and diluted earnings per share are calculated based on profit attributable to shareholders and the weighted average number of ordinary shares outstanding, considering the dilutive effect of share options and share award schemes - The Board declared an interim dividend of **HKD 1.30 per share** (equivalent to **0.17 USD**), totaling **447,118 thousand USD**[110](index=110&type=chunk) - Basic earnings per share are calculated based on the profit attributable to shareholders of the company for the period and the weighted average number of ordinary shares outstanding during the period, less shares held under the share award scheme[111](index=111&type=chunk) Earnings Per Share Calculation Data (2025 H1) | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit attributable to shareholders of the company used in calculating basic and diluted EPS (Thousand USD) | 629,995 | 350,674 | | Weighted average number of ordinary shares used in calculating basic EPS | 2,653,048,042 | 2,645,698,301 | | Dilutive effect - weighted average of share options | 28,417 | 448,884 | | Dilutive effect - weighted average of shares held under share award scheme | 38,112,092 | 37,011,444 | | Weighted average number of ordinary shares used in calculating diluted EPS | 2,691,188,551 | 2,683,158,629 | [Notes on Assets and Liabilities](index=55&type=section&id=10.%20Property%2C%20Plant%20and%20Equipment) This section details the acquisition and disposal of property, plant, and equipment, provides an aging analysis and impairment provisions for trade receivables, and outlines the aging and credit terms for trade payables, while also disclosing the composition of financial assets at fair value through profit or loss and contract liabilities Changes in Property, Plant and Equipment (2025 H1) | Item | 2025 H1 (Thousand USD) | 2024 H1 (Thousand USD) | | :--- | :--- | :--- | | Acquisition at cost | 79,815 | 115,495 | | Disposal at carrying amount | 15,989 | 2,520 | Aging Analysis of Trade Receivables (June 30, 2025) | Aging | Amount (Thousand USD) | | :--- | :--- | | Within 1 month | 134,718 | | 1 to 2 months | 20,095 | | 2 to 3 months | 7,797 | | Over 3 months | 7,780 | | **Total** | **170,390** | - The provision for impairment loss on trade receivables was **945 thousand USD** as of June 30, 2025, an increase from **518 thousand USD** as of December 31, 2024[118](index=118&type=chunk) - Financial assets at fair value through profit or loss, representing unlisted investments, were **zero** as of June 30, 2025, compared to **690 thousand USD** as of December 31, 2024[121](index=121&type=chunk) Aging Analysis of Trade Payables (June 30, 2025) | Aging | Amount (Thousand USD) | | :--- | :--- | | Within 1 month | 225,806 | | 1 to 2 months | 20,963 | | 2 to 3 months | 9,602 | | Over 3 months | 25,258 | | **Total** | **281,629** | - Other payables and accrued expenses include **21,934 thousand USD** in contract liabilities, representing advances received from customers for container shipping services[123](index=123&type=chunk) Changes in Issued Share Capital (2025 H1) | Reason for Change | Number of Shares | Thousand USD Equivalent | | :--- | :--- | :--- | | As of January 1, 2025 | 2,687,119,908 | 34,641 | | New shares issued upon exercise of share options | 139,000 | 2 | | Shares issued under share scheme | 12,729,108 | 163 | | **As of June 30, 2025** | **2,699,988,016** | **34,806** | [Capital Commitments and Related Party Transactions](index=61&type=section&id=16.%20Capital%20Commitments) As of June 30, 2025, the company had approximately 267 million USD in capital commitments for vessel acquisitions and 4.18 million USD for smart container yard construction; this section also details various related party transactions with companies controlled by the controlling shareholder and joint ventures, along with the composition of key management personnel's remuneration Capital Commitments (June 30, 2025) | Item | Amount (Thousand USD) | | :--- | :--- | | Acquisition of vessels | 266,616 | | Construction of smart container yard | 4,183 | | **Total** | **270,799** | Related Party Transactions (2025 H1) | Transaction Type | Companies controlled by controlling shareholder (Thousand USD) | Joint ventures (Thousand USD) | | :--- | :--- | :--- | | Container shipping services income | 12,804 | 61,021 | | Ocean freight forwarding services income | - | 202,446 | | Container vessel charter hire expenses | 4,404 | - | | Freight forwarding services expenses | - | 11,794 | | Land and building rental income | - | 1,350 | Key Management Personnel Remuneration (2025 H1) | Remuneration Type | Amount (Thousand USD) | | :--- | :--- | | Short-term employee benefits | 1,171 | | Post-employment benefits | 18 | | Share-based payment expenses | 3,040 | | **Total** | **4,229** | [Fair Value of Financial Instruments](index=63&type=section&id=18.%20Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) This section explains the valuation methods for financial instruments' fair value, primarily using present value techniques, and presents the fair value measurement of derivative financial instruments by fair value hierarchy (Level 2: significant observable inputs), with no transfers between Level 1 and Level 2, or into or out of Level 3 during the period - The fair value of financial instruments is accounted for at the amount for which an instrument could be exchanged in a current transaction between willing parties, estimated using **present value techniques**[131](index=131&type=chunk)[132](index=132&type=chunk) - Derivative financial instruments, including forward currency contracts and interest rate swaps, are measured using valuation techniques similar to forward pricing and swap models, applying **present value techniques**[132](index=132&type=chunk) Assets Measured at Fair Value (June 30, 2025) | Item | Level 2 (Thousand USD) | Total (Thousand USD) | | :--- | :--- | :--- | | Derivative financial instruments | 53,697 | 53,697 | - During the period, there were **no transfers** between Level 1 and Level 2, nor any transfers into or out of Level 3 for fair value measurements of financial assets and financial liabilities[135](index=135&type=chunk)

Market Overview - The Hong Kong stock market experienced a decline of 0.24% amid complex external conditions and concerns over upcoming remarks by Federal Reserve Chairman Jerome Powell at the Jackson Hole conference [1] - The geopolitical situation remains tense, with reports of large-scale airstrikes by Russian forces on Ukraine and renewed military actions in the Middle East [1][2] Company Performance - Chinese gold stocks, such as China Gold International (02099) and Chow Sang Sang (00116), saw significant gains, with increases of nearly 5% and over 7% respectively [1] - The Hong Kong Stock Exchange (HKEX) is considering extending trading hours, with plans for a 24-hour trading mechanism by 2026, although this may not be favorable for all investors [2] Digital Currency Developments - China is reportedly considering allowing the use of RMB-backed stablecoins, which could significantly enhance the internationalization of the RMB [3] - Related stocks in the stablecoin sector, such as ZhongAn Online (06060) and Guotai Junan International (01788), experienced notable increases [3] Health Sector Insights - The Chinese government has issued guidelines to promote ear and hearing health, which has positively impacted healthcare stocks like Dingdang Health (09886) and Ping An Good Doctor (01833) [3] Transportation and Logistics - China Railway Group announced a significant tender for high-speed trains, exceeding market expectations, which is likely to benefit companies like CRRC (01766) and Times Electric (03898) [3] - The shipping sector is poised for growth, particularly with the increase in trade with ASEAN countries, benefiting companies such as China Ocean Shipping (00598) and Sea Group (01308) [6] Individual Stock Highlights - Sea Group (01308) reported a revenue of approximately $1.6645 billion, a year-on-year increase of 28%, with a profit growth of 79.5% [7] - The company is expanding its fleet with new container ships to meet growing operational demands, which is expected to enhance its market position [8] - The demand for smaller container ships remains strong due to limited supply and economic growth in Southeast Asia [8]