Summary of Conference Call for COSCO SHIPPING Holdings Industry Overview - The shipping industry is currently facing challenges due to unclear new tariff policies and slow recovery of small and medium enterprises post-holiday. [2][3] - The market anticipates a gradual recovery in cargo volume after the Lantern Festival, with more significant shipping activity expected in mid to late March. [2][3] - The suspension rate for routes to Europe and the United States during the Spring Festival was notably high, with future capacity adjustments dependent on cargo volume. [2][3] Key Points and Arguments - **Tariff Policy Impact**: The U.S. Supreme Court ruled against the "reciprocal tariffs" proposed by the Trump administration, leading to uncertainty in future shipping demand. The actual implementation date of the new tariff policy remains unclear. [3] - **Cargo Volume Recovery**: It is expected that cargo volume will gradually recover post-Lantern Festival, with a more noticeable increase in shipping activity anticipated around mid-March. [2][3] - **Capacity Adjustments**: Shipping companies typically suspend 20%-50% of their routes during the holiday period. The global shipping capacity is projected to grow by 3%-5% in 2026, with a decrease in new ship deliveries year-on-year. [3][6] - **Freight Rate Predictions**: The General Rate Increase (GRI) for March is contingent on cargo volume, with expected increases of $800-$1,000 per container. However, early March rates may face discounts due to insufficient cargo volume. [4][6] - **Safety Concerns in Red Sea**: The safety of shipping routes through the Red Sea remains a concern, with predictions that full recovery of routes through the Suez Canal may be delayed until late 2026 or even 2027. [5][6] - **Environmental Regulations**: Stricter environmental regulations are expected to accelerate the retirement of older vessels, with approximately 17% of the global fleet being over 20 years old. [6][7] - **Economic Growth and Demand**: Global economic growth is projected at 3.3% for 2026, with container shipping demand growth expected to slow to 2%-3%. This slowdown in demand growth is anticipated to narrow the supply-demand gap. [7][8] Additional Important Insights - **Market Dynamics**: The relationship between freight rates and the CCFI index is complex and non-linear, influenced by various external and internal factors. [6][8] - **Historical Context**: The shipping industry experienced a significant drop in freight rates in 2025, with the CCFI index declining by approximately 26% year-on-year. [6][8] - **Future Trends**: The overall supply growth is expected to remain healthy and rational, with a gradual increase in vessel scrapping rates anticipated in the coming years. [6][7] This summary encapsulates the key insights and projections discussed during the conference call, highlighting the current state and future outlook of the shipping industry.

Core Viewpoint - The company, COSCO Shipping Holdings, is committed to focusing on its core shipping business while optimizing its industrial layout and expanding into emerging markets such as Southeast Asia, Latin America, Africa, and the Middle East [1] Group 1: Business Strategy - The company aims to strengthen its competitive advantage on main shipping routes while actively exploring new regional markets and third-country markets [1] - The company plans to enhance its dry and feeder shipping network across various regions to solidify its shipping business [1] Group 2: Innovation and Development - The company is targeting two emerging sectors: digital intelligence and green low-carbon initiatives, to accelerate the synergy between its container shipping business and digital supply chain operations [1] - The focus is on creating new advantages for high-quality development through these initiatives [1]

Core Insights - The top three companies with the highest short positions as of February 20 are China COSCO Shipping (01919) at 18.86%, CATL (03750) at 16.68%, and Ping An Insurance (02318) at 15.48% [1][2] Group 1: Top Short Positions - China COSCO Shipping (01919) has a short position of 520 million shares, representing a short ratio of 18.86% [2] - CATL (03750) has a short position of 26.0064 million shares, with a short ratio of 16.68% [2] - Ping An Insurance (02318) has a short position of 1.153 billion shares, with a short ratio of 15.48% [2] - Sunny Optical Technology (02382) has a short ratio of 15.24% [2] - Dongfang Electric (01072) has a short ratio of 15.12% [2] - ZTE Corporation (00763) has a short ratio of 14.53% [2] - Vanke (02202) has a short ratio of 14.16% [2] - Zijin Mining (02899) has a short ratio of 13.50% [2] - Hansoh Pharmaceutical (01276) has a short ratio of 13.32% [2] - WuXi AppTec (02359) has a short ratio of 12.50% [2] Group 2: Largest Increases in Short Positions - Weimob (02013) saw an increase of 0.27% in its short ratio, now at 12.43% [2] - China Duty Free Group (01880) increased by 0.25%, now at 8.92% [2] - Midea Group (00300) increased by 0.23%, now at 4.26% [2] - Meitu (01357) increased by 0.22%, now at 8.21% [2] - Xinjiang Xinxin Mining (03833) increased by 0.20%, now at 0.51% [2] - Hua Hong Semiconductor (01347) increased by 0.20%, now at 3.59% [2] - Minmetals Development (00425) increased by 0.19%, now at 2.59% [2] - China COSCO Energy (01138) increased by 0.18%, now at 6.61% [2] - Jiaxin International Resources (03858) increased by 0.17%, now at 0.25% [2] - China Railway (00390) increased by 0.17%, now at 4.61% [2] Group 3: Largest Decreases in Short Positions - Pacific Basin Shipping (02343) decreased by 0.83%, now at 4.66% [3] - Tianqi Lithium (09696) decreased by 0.66%, now at 2.25% [3] - Tiangong International (00826) decreased by 0.51%, now at 3.46% [3] - Huiju Technology (01729) decreased by 0.50%, now at 3.08% [3] - Shengye (06069) decreased by 0.44%, now at 1.63% [3] - Ganfeng Lithium (01772) decreased by 0.29%, now at 8.52% [3] - China Galaxy (06881) decreased by 0.25%, now at 3.19% [4] - Jiangxi Copper (00358) decreased by 0.22%, now at 2.32% [4] - China COSCO Shipping (01919) decreased by 0.21%, now at 18.86% [4] - Cafe de Coral (00341) decreased by 0.19%, now at 5.43% [4]

Report Industry Investment Rating There is no information provided regarding the report's industry investment rating. Core Viewpoints of the Report - The freight rates were adjusted in the first half of March, and attention should be paid to whether the price increase notices for April will be issued soon [1][5]. - The cancellation of VAT export tax rebates for products such as photovoltaics may disrupt the shipping rhythm of relevant industries and further affect shipping companies' pricing strategies [5]. - The freight volume from March to April is relatively weak in normal years. Attention should be paid to whether the current freight rates can stabilize in the second half of March [5]. - Shipping companies may issue price increase notices every month from March to August. The 4 - month contract is gradually shifting towards the delivery logic [5]. - The long - term contracts have strong expectations of price increases under the background of the peak season, with intense games on the resumption time and high expected volatility [6]. - The resumption of the Suez Canal is expected to be a gradual process. The pressure on the delivery of ultra - large vessels in the first half of 2026 is relatively small. If the Suez Canal does not resume operation in the first half of the year, the pressure on the supply side in the first half of 2026 is still relatively controllable, and the freight rates may still be expected to rise [6]. - Investors can pay attention to the arbitrage opportunities of going long on EC2606 and short on EC2610, or going long on EC2607 and short on EC2610 [6]. Summary by Directory 1. Market Analysis - **Online Quotes**: Different shipping companies have different freight rate quotes for the Shanghai - Rotterdam route in March. For example, Gemini Cooperation's Maersk has WEEK11 quotes of 1230/1960 and WEEK12 quotes of 1155/1830; HPL's quotes are 1335/2235 in the first half of March and 1935/3135 in the second half [1]. - **Geopolitical Situation**: US officials said that Trump is expected to convene senior advisors on Friday to discuss the Iran issue in detail and decide on the course of action against Tehran. The focus of the discussion is not whether an attack will occur, but its scope and potential targets [3]. 2. Container Ship Capacity Supply - **Static Supply**: As of January 31, 2026, 6 container ships have been delivered, with a total capacity of 46,950 TEU. The delivery expectations for 12,000 - 16,999 TEU and 17,000 + TEU ships in the remaining months of 2026 and subsequent years are provided [3][4]. - **Dynamic Supply**: The average weekly capacity from China to European base ports in March was 290,100 TEU, and in April it is expected to be 310,000 TEU. There were 8 blank sailings and 4 TBNs in March [4]. 3. Freight Rate and Market Trends - **Freight Rate Adjustment**: The freight rates of some shipping companies have been adjusted after the price increase notices were issued in March. The current freight rate range in the first half of March is between 1,800 - 2,300 US dollars/FEU [5]. - **Price Increase Notices**: Shipping companies usually issue price increase notices in March and April to stabilize prices. From March to August, shipping companies may issue price increase notices every month [5]. - **Contract Trends**: The 4 - month contract is gradually shifting towards the delivery logic, and the long - term contracts have strong expectations of price increases under the background of the peak season [5][6]. 4. Strategy - **Unilateral Strategy**: The 4 - month contract fluctuates [8]. - **Arbitrage Strategy**: Go long on EC2606 and short on EC2610, or go long on EC2607 and short on EC2610 [6][8]. 5. Market Data - **Futures Prices**: As of February 26, 2026, the closing prices of different container shipping index futures contracts are provided, such as EC2604 at 1,236.00, EC2605 at 1,414.80, etc. [7]. - **Spot Prices**: The SCFI and SCFIS prices for different routes on different dates are provided, such as the SCFI (Shanghai - Europe) price of 1,361 US dollars/TEU on February 13 [7].

Core Viewpoint - The Hong Kong Stock Connect Central State-Owned Enterprises Dividend ETF (159266) experienced significant net redemptions, indicating a trend of outflows from this fund in recent trading periods [1][2]. Group 1: Fund Performance - As of February 26, the Hong Kong Stock Connect Central State-Owned Enterprises Dividend ETF (159266) had a net redemption of 18.735 million yuan, ranking 14th out of 217 in cross-border ETF net outflows [1]. - The fund's latest size is 548 million yuan, down from 572 million yuan the previous day, with a net outflow representing 3.27% of the previous day's size [1]. - Year-to-date, the fund has seen a 15.43% decrease in shares and a 10.36% decrease in size compared to December 31, 2025 [2]. Group 2: Trading Activity - Over the last 20 trading days, the cumulative trading amount for the fund was 311 million yuan, with an average daily trading amount of 15.548 million yuan [2]. - In the current year, across 33 trading days, the cumulative trading amount reached 434 million yuan, averaging 13.153 million yuan daily [2]. Group 3: Fund Management - The current fund managers are Liu Tingyu and Cai Leping, with Liu managing the fund since July 23, 2025, achieving a return of 5.21%, while Cai has been managing since November 5, 2025, with a return of 2.31% [2]. Group 4: Top Holdings - The fund's top holdings include COSCO Shipping Holdings, China Shenhua Energy, CNOOC, Sinopec Engineering, China National Offshore Oil Corporation, and others, with respective holding percentages and market values detailed [2].

Core Viewpoint - The Guangfa CSI National New Hong Kong Stock Connect Central State-Owned Enterprises Dividend ETF (520900) experienced a slight decline of 0.72% in its closing price on February 26, with a trading volume of 67.9185 million yuan [1]. Group 1: Fund Overview - The Guangfa CSI National New Hong Kong Stock Connect Central State-Owned Enterprises Dividend ETF (520900) was established on June 26, 2024, with an annual management fee of 0.50% and a custody fee of 0.10% [1]. - As of February 25, 2025, the fund had a total of 1.834 billion shares and a total size of 2.065 billion yuan, showing a decrease of 2.19% in shares and an increase of 6.21% in size compared to December 31, 2025 [1]. Group 2: Liquidity and Trading Activity - The cumulative trading amount for the Guangfa CSI National New Hong Kong Stock Connect Central State-Owned Enterprises Dividend ETF over the last 20 trading days reached 2.081 billion yuan, with an average daily trading amount of 104 million yuan [1]. - Year-to-date, the ETF has recorded a cumulative trading amount of 2.857 billion yuan over 33 trading days, with an average daily trading amount of 8.65724 million yuan [1]. Group 3: Fund Management and Performance - The current fund managers are Huo Huaming and Lv Xin, with Huo managing the fund since June 26, 2024, achieving a return of 11.08%, while Lv has been managing since April 30, 2025, with a return of 24.96% [2]. - The latest report indicates that the top holdings of the fund include China National Offshore Oil Corporation, China Shenhua Energy, China Petroleum & Chemical Corporation, China Mobile, and others, with significant weightings in the portfolio [2][3].

Group 1 - The Invesco Great Wall CSI National New Hong Kong Stock Connect Central Enterprise Dividend ETF (520990) closed down 0.65% with a trading volume of 214 million yuan on February 26 [1] - The fund was established on June 26, 2024, with a management fee of 0.50% and a custody fee of 0.10% [1] - As of February 25, 2025, the fund's latest share count was 5.787 billion shares, with a total size of 6.284 billion yuan, reflecting a 1.87% increase in shares and a 10.61% increase in size year-to-date [1] Group 2 - The current fund managers are Gong Lili and Wang Yang, with returns of 24.16% and 9.85% respectively during their management periods [2] - The latest report indicates that the top holdings of the fund include China National Offshore Oil Corporation, China Shenhua Energy, China Petroleum & Chemical Corporation, and China Mobile, among others [2] Group 3 - The top holdings and their respective weights in the fund are as follows: - China National Offshore Oil Corporation: 10.04% with a market value of 571 million yuan - China Shenhua Energy: 9.99% with a market value of 568 million yuan - China Petroleum & Chemical Corporation: 9.82% with a market value of 558 million yuan - China Mobile: 9.65% with a market value of 548 million yuan - China Petroleum: 8.21% with a market value of 467 million yuan - COSCO Shipping Holdings: 5.74% with a market value of 326 million yuan - China Telecom: 4.76% with a market value of 270 million yuan - China Unicom: 3.14% with a market value of 179 million yuan - China Tower: 2.83% with a market value of 161 million yuan - China Merchants Bank: 2.07% with a market value of 118 million yuan [3]

Core Viewpoint - The Hong Kong High Dividend ETF (159302) has experienced a decline in both share count and total assets since the beginning of the year, indicating potential challenges in attracting investor interest [1][2]. Group 1: Fund Performance - As of February 26, the Hong Kong High Dividend ETF (159302) closed down 0.73% with a trading volume of 10.55 million yuan [1]. - The fund was established on August 23, 2024, with an annual management fee of 0.50% and a custody fee of 0.10% [1]. - The fund's performance benchmark is the China Securities Hong Kong Stock Connect High Dividend Investment Index, adjusted for valuation exchange rates [1]. Group 2: Fund Size and Liquidity - As of February 25, the latest share count for the fund was 10.5 million shares, with a total size of 145 million yuan [1]. - Compared to December 31, 2025, the fund's share count has decreased by 12.15% and total size has decreased by 5.36% this year [1]. - Over the last 20 trading days, the cumulative trading amount was 365 million yuan, with an average daily trading amount of 18.23 million yuan [1]. Group 3: Fund Management and Holdings - The current fund manager is Zhang Yichi, who has managed the fund since its inception, achieving a return of 34.80% during his tenure [2]. - The top holdings of the fund include COSCO Shipping Holdings, Far East Horizon, Minsheng Bank, and others, with the largest holding being COSCO Shipping Holdings at 5.67% [2].

Core Viewpoint - The Invesco Great Wall Hong Kong Stock Connect Dividend Low Volatility ETF (159569) has shown a decrease in share count but an increase in total assets year-to-date, indicating a mixed performance in terms of investor interest and fund growth [1][2]. Group 1: Fund Performance - As of February 26, 2024, the ETF closed down 0.90% with a trading volume of 56.136 million yuan [1]. - The fund's management fee is 0.50% annually, and the custody fee is 0.08% annually [1]. - The latest share count is 331 million, with a total asset size of 485 million yuan, reflecting a 5.16% decrease in shares and a 4.00% increase in assets since December 31, 2025 [1]. Group 2: Trading Activity - Over the last 20 trading days, the ETF has accumulated a trading volume of 1.27 billion yuan, averaging 63.5013 million yuan per day [1]. - Year-to-date, in 33 trading days, the total trading volume reached 1.651 billion yuan, with an average daily trading volume of 50.028 million yuan [1]. Group 3: Fund Management - The current fund managers are Gong Lili and Wang Yang, with Gong managing since August 29, 2024, achieving a return of 48.54%, while Wang has managed since August 13, 2025, with a return of 5.74% [2]. Group 4: Top Holdings - The ETF's top holdings include: - COSCO Shipping Holdings (8.86% of holdings) - Orient Overseas International (7.48%) - Yanzhou Coal Mining (5.65%) - Seaspan Corporation (4.52%) - Yancoal Australia (4.46%) - WH Group (3.76%) - China Shenhua Energy (3.63%) - Far East Horizon (3.39%) - CNOOC (3.27%) - Sinopec (3.26%) [2][3].

Core Insights - The top three companies with the highest short positions as of February 13 are COSCO Shipping Holdings (01919), CATL (03750), and Ping An Insurance (02318), with short ratios of 19.07%, 16.71%, and 15.47% respectively [1][2] Group 1: Companies with Highest Short Ratios - COSCO Shipping Holdings (01919) has a short position of 526 million shares, representing a short ratio of 19.07% [2] - CATL (03750) has a short position of 26.05 million shares, with a short ratio of 16.71% [2] - Ping An Insurance (02318) has a short position of 1.152 billion shares, reflecting a short ratio of 15.47% [2] - Dongfang Electric (01072) has a short position of 62.39 million shares, with a short ratio of 15.29% [2] - Sunny Optical Technology (02382) has a short position of 16.4 million shares, maintaining a short ratio of 15.17% [2] Group 2: Companies with Increased Short Positions - WuXi AppTec (02359) saw the largest increase in short ratio, rising by 2.66% to 12.45% [2][3] - Chifeng Jilong Gold Mining (06693) increased its short ratio by 1.63% to 3.60% [2][3] - Changfei Optical Fiber (06869) experienced a 1.55% increase in short ratio, reaching 4.13% [2][3] - Meitu (01357) had a short ratio increase of 1.38% to 8.00% [2][3] - Weimob (02013) saw a 1.33% increase in its short ratio, now at 12.16% [2][3] Group 3: Companies with Decreased Short Positions - Tianqi Lithium (09696) had the largest decrease in short ratio, dropping by 2.29% to 2.91% [3][4] - Vanke (02202) saw a reduction of 2.17% in its short ratio, now at 14.25% [3][4] - Jiangsu Ninhui Expressway (00177) decreased its short ratio by 1.02% to 10.61% [3][4] - Ganfeng Lithium (01772) experienced a decrease of 1.01% in its short ratio, now at 8.81% [3][4] - Country Garden (02007) saw a reduction of 0.91% in its short ratio, now at 1.02% [3][4]