Group 1 - Company announced a joint venture agreement involving its wholly-owned subsidiary, COSCO Shipping (Hong Kong), with Guangzhou COSCO Shipping Logistics, Shenzhen Port Logistics Group, and China Communications Construction Company, with a total registered capital of RMB 1 billion (approximately HKD 1.095 billion) [1] - The investment amounts from the parties include RMB 370 million (approximately HKD 405 million) from COSCO Shipping (Hong Kong), RMB 300 million (approximately HKD 328 million) from Guangzhou COSCO Shipping Logistics, RMB 230 million (approximately HKD 252 million) from Shenzhen Port Logistics Group, and RMB 100 million (approximately HKD 109 million) from China Communications Construction Company [1] - The joint venture will hold respective equity stakes of 37%, 30%, 23%, and 10% among the partners, and will be classified as an indirect non-wholly-owned subsidiary of the company [1] Group 2 - The company is focusing on building a digital supply chain investment and operation platform centered around container shipping, aiming to enhance the stability and reliability of global supply chains [2] - The project aims to establish a high-standard warehouse and a multifunctional logistics park near Yantian Port, providing integrated value-added services including cold storage, consolidation, customs supervision, and warehousing [2] - This initiative is expected to strengthen the company's strategic layout in the Pearl River Delta region and support the integration of service and advanced manufacturing industries, enhancing brand value and ensuring supply chain resilience [2]

Group 1 - Company announced a joint venture agreement involving its wholly-owned subsidiary, COSCO Shipping (Hong Kong), and three other parties, with a total registered capital of RMB 1 billion (approximately HKD 1.095 billion) [1] - The equity distribution in the joint venture will be 37% for COSCO Shipping (Hong Kong), 30% for Guangzhou COSCO Shipping Logistics, 23% for Shenzhen Port Logistics Group, and 10% for China Communications Construction Company [1] - The joint venture will be classified as an indirect non-wholly-owned subsidiary of the company, and its financial statements will be consolidated into the group's financial reports [1] Group 2 - The company aims to establish a digital supply chain investment and operation platform centered on container shipping, responding to the growing demands for stability and reliability in global supply chains [2] - The project will serve as a logistics hub for cargo around Yantian Port, featuring high-standard warehouses and a multifunctional logistics park, enhancing integrated value-added services [2] - This initiative is expected to strengthen the company's strategic positioning in the Pearl River Delta region and support the integration of service and advanced manufacturing industries, thereby enhancing brand value [2]

Core Viewpoint - COSCO Shipping Holdings (01919.HK) announced a joint venture agreement involving its wholly-owned subsidiary, COSCO Shipping (Hong Kong), with Guangzhou COSCO Shipping Logistics, Shenzhen Port Logistics Group, and China Communications Construction Company Fourth Harbor Engineering Co., Ltd. to establish a new company focused on smart supply chain solutions [1] Group 1 - The joint venture company, Shenzhen COSCO Shipping Smart Supply Chain Co., Ltd., will have a registered capital of RMB 100 million [1] - COSCO Shipping (Hong Kong) will contribute RMB 37 million, while the other partners will contribute RMB 30 million, RMB 23 million, and RMB 10 million respectively [1] - The ownership structure of the joint venture will see COSCO Shipping (Hong Kong) holding 37%, Guangzhou COSCO Shipping Logistics 30%, Shenzhen Port Logistics Group 23%, and China Communications Construction Company Fourth Harbor Engineering 10% [1]

中远海控：合资公司作为盐田港周边货物的集疏运枢纽，注册资本10亿。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 中遠海運控股股份有限公司 COSCO SHIPPING Holdings Co., Ltd.* （於中華人民共和國註冊成立的股份有限公司） （股份代號：1919） 關連交易 成立合資公司 成立合資公司 董事會宣佈，於二零二五年九月十五日，本公司的全資附屬公司中遠集運（香 港）與廣州中遠海運物流、深圳港物流集團及中交四航局共同訂立合資協議。 據此，訂約方同意共同成立合資公司，本公司全資附屬公司中遠集運（香港）的 出資金額為人民幣37,000萬元（相當於約40,511萬港元），廣州中遠海運物流、 深圳港物流集團及中交四航局的出資金額則分別為人民幣30,000萬元（相當於約 32,847萬港元）、人民幣23,000萬元（相當於約25,183萬港元）及人民幣10,000萬 元（相當於約10,949萬港元），全數計入合資公司註冊資本。 於完成合資公司的設立後，合資公司的註冊資本為人民幣100,000萬元（相當於 ...

Summary of Key Points from the Conference Call Industry Overview - **Sector Focus**: The conference call primarily discusses the **AI application** and **overseas expansion** across various sectors in China, particularly in **healthcare equipment & services**, **automobiles**, and **internet and education** sectors [2][3][8]. Core Insights - **AI Adoption**: There is a significant increase in AI adoption across both new and traditional economies, with companies in sectors like automotive and online gaming targeting international markets for growth [3][8]. - **Investor Interest**: In August, the sectors that gained the most wallet share were **healthcare equipment & services**, **food & beverages**, and **semiconductors**. Conversely, **capital goods** saw the largest decline in wallet share [5][10]. - **Company Visits**: The top companies attracting investor interest included **Li Auto**, **Full Truck Alliance**, **NAURA**, and **Haidilao**, with notable performance in Q2 2025 results [3][5]. Sector-Specific Highlights - **Healthcare Equipment & Services**: This sector showed the highest wallet share gains and had a negative crowding factor, indicating strong investor interest [5][15]. - **Automotive Sector**: Companies like **Leapmotor** are planning significant sales targets for 2026, aiming for 1 million domestic and 100-150 thousand overseas sales, supported by new model launches [34][35]. - **Shipping Industry**: **COSCO Shipping** reported muted demand in a traditionally peak season, with a focus on cost control and optimizing operations through AI [31]. Additional Insights - **Game Development**: Chinese game companies are increasingly collaborating with Japanese IPs to enhance their global presence, driven by lower development costs and a lack of world-famous IP [25][26]. - **E-commerce Trends**: There is a noted acceleration in domestic ad revenue for platforms like **Kuaishou** and **Bilibili**, driven by AI improvements and new ad verticals [28]. - **Competitive Landscape in Video GenAI**: The competition among video genAI models is intensifying, with **Kuaishou** recognized as a leader in model quality and monetization strategies [29][30]. Risks and Challenges - **Macroeconomic Risks**: The industrial sector faces risks from potential economic downturns, which could impact demand for industrial goods and overall growth [36]. - **Competition**: Intense competition from both domestic and foreign enterprises poses a risk to market share for companies across various sectors [36]. Conclusion The conference call highlighted the dynamic landscape of various sectors in China, particularly the growing influence of AI and the strategic moves by companies to expand their market presence both domestically and internationally. The insights provided a comprehensive view of investor sentiment, sector performance, and the challenges ahead.

Group 1: AI and Digital Innovations - The 2025 China International Service Trade Fair showcased new AI technologies and digital applications, enhancing global service trade quality and providing immersive experiences for consumers and businesses [1] - Educational innovations included personalized health development models and integrated smart campus solutions, demonstrating the application of AI in education [2] - The integration of AI with geographic spatial technology by China Mobile created a comprehensive educational resource ecosystem, enhancing learning and cultural engagement [2] Group 2: Telecommunications and Social Governance - The telecommunications sector presented various applications such as "AI + new calls" and "5G + subway," highlighting the international facilitation of service trade and the advancement of global 5G applications [3] - The design of the Fengtai Railway Station showcased a combination of new and traditional communication technologies, ensuring aesthetic appeal and strong signal coverage [3] - Innovative exhibition methods, including dynamic demonstrations, allowed visitors to experience the impact of digital technology on social governance [3] Group 3: Supply Chain and Transportation Innovations - The supply chain and transportation services exhibition featured leading companies showcasing innovations in digital transportation and smart manufacturing [5] - The China-Singapore "Digital Trade Port" project, utilizing blockchain technology, improved the efficiency of trade document processing and promoted green digital upgrades in international trade [5] - The initiative fostered a closed-loop model of "business practice - standard formulation - international promotion," encouraging more enterprises to join the digital ecosystem [5] Group 4: Interactive Experiences - The fair included multiple immersive interactive points, allowing attendees to experience the practical applications of transportation technology through AI videos and smart models [6]

Core Viewpoint - COSCO Shipping Holdings reported disappointing 1H25 results, with revenue and net profit growth falling short of expectations primarily due to lower realized freight rates [1] Financial Performance - In 1H25, revenue increased by 7.80% YoY to Rmb109.10 billion, while net profit attributable to shareholders rose by 1.94% YoY to Rmb17.54 billion, resulting in an EPS of Rmb1.05 [1] - In 2Q25, revenue decreased by 3.39% YoY and 11.77% QoQ to Rmb51.14 billion, and net profit attributable to shareholders fell by 42.25% YoY and 50.05% QoQ to Rmb5.84 billion [1] Freight Volume and Rates - In 2Q25, container freight volume increased by 5.7% YoY and 4.9% QoQ to 6.8 million TEU, while freight rates declined YoY and QoQ [2] - Per-container revenue fell by 10.9% YoY and 17.3% QoQ, with trans-Pacific routes seeing a 13.8% YoY and 13.0% QoQ decline, and Asia-Europe routes experiencing a 22.8% YoY and 27.7% QoQ drop [2] Cost Analysis - Cost per container rose by 7.3% YoY in 2Q25, driven by increased container purchases and higher vessel rental costs [2] Industry Trends - The container shipping industry is expected to face significant supply-side pressure, with current backlog orders accounting for 30.74% of existing shipping capacity [3] - New shipping capacity is scheduled for delivery mainly in 2026-2028, with potential supply risks anticipated in 2027-2028 [3] Market Outlook - The US National Retail Federation forecasts a 20% YoY decline in import volume for US routes from September to December 2025, indicating potential challenges for demand [4] - Continuous monitoring of trans-Pacific cargo volumes and tariff policy developments is recommended, as stable tariff policies could support demand [4] Long-term Strategy - The company is focused on increasing shipping capacity and expanding routes in emerging markets, which is expected to enhance long-term value [5] - As of 2Q25, the company had orders for 51 vessels with a combined capacity of over 910,000 TEU, indicating ongoing expansion efforts [6] Financial Valuation - The company maintains its earnings forecasts for 2025 and 2026, with A-shares trading at 8.7x 2025e and 11.6x 2026e P/E, while H-shares are at 7.1x 2025e and 9.3x 2026e P/E [7] - Target prices imply an upside of 6.7% for A-shares and 7.0% for H-shares, with attractive dividend yields of 5.7% and 7.1% expected in 2025 [7]

Summary of Key Points from the Conference Call Industry and Company Overview - **Industry**: Inbound Travel in China, specifically focusing on Beijing's tourism data post-COVID - **Company**: Morgan Stanley Asia Limited, with analysts involved in the research Core Insights and Arguments 1. **Growth Drivers**: - Inbound visitation growth is driven by emerging markets, which are expected to remain the major growth driver [7] - Visa-free coverage expansion is a significant factor, with Europe recovering to above pre-COVID levels despite soft visitation from the UK, France, and Germany [7] 2. **Tourist Breakdown**: - In 2019, 76% of foreign visitors to China were from Asia, 13% from Europe, 8% from the Americas, 2% from Oceania, and 1% from Africa [10] - In 1H25, the breakdown of foreign tourists in Beijing showed a shift, with Asia accounting for 35%, Europe 31%, Americas 26%, Oceania 5%, and Africa 3% [13] 3. **Recovery Status**: - Different regions show varying recovery statuses compared to 2019: - **Fully Recovered**: Asia, Europe, Oceania, and Africa with growth rates over 30% YoY in 1H25 - **Strong Recovery**: Korea and Canada with growth rates over 40% YoY - **Sluggish Recovery**: USA, Japan, India, UK, France, and Germany with growth rates below 20% YoY [7] 4. **Visitor Trends**: - The acceleration of US visitation is noted as encouraging despite trade frictions and geopolitical tensions affecting overall inbound visitation [2] - Emerging markets are expected to continue driving growth, with specific countries like Vietnam, Mongolia, and Indonesia showing significant increases in tourist numbers [19] 5. **Statistical Adjustments**: - Beijing's post-COVID tourist statistics are not fully comparable with pre-COVID levels due to the inclusion of same-day travelers and the exclusion of certain visitor categories [7] Additional Important Insights - **Geopolitical Impact**: Trade frictions and geopolitical tensions have negatively impacted inbound visitation, but the recovery of US visitation is a positive sign [2] - **Data Limitations**: The analysis relies on Beijing's data due to the lack of national-level international visitor breakdown post-COVID, which may limit the comprehensiveness of the insights [1] - **Future Outlook**: The trends observed suggest a potential for continued growth in inbound tourism, particularly from emerging markets and regions with expanding visa-free access [7] This summary encapsulates the key points discussed in the conference call regarding the inbound travel industry in China, particularly focusing on the recovery trends and statistical insights from Beijing's tourism data.

Core Viewpoint - Morgan Stanley has downgraded its earnings forecasts for COSCO Shipping Holdings for 2025 to 2027 by 12%, 9%, and 9% respectively, reflecting a decline in container shipping profitability [1] Group 1: Earnings Forecasts - The earnings forecasts for COSCO Shipping Holdings have been reduced to account for lower profitability in the container shipping sector [1] - The target price for COSCO Shipping Holdings has been adjusted from HKD 9.6 to HKD 9.5, maintaining a "Reduce" rating [1] Group 2: Market Conditions - Supply pressure is expected to persist in 2025 and 2026 due to new ship deliveries, contributing to a downturn in the container shipping cycle [1]