Investment Rating - The report maintains a "Buy" rating for the company [5][10]. Core Views - The company's revenue for H1 2025 reached 872 million yuan, representing a year-on-year growth of 7.46%, while the net profit attributable to the parent company was 130 million yuan, down 13.30% year-on-year. The net profit after deducting non-recurring items was 111 million yuan, showing a slight increase of 0.39% year-on-year [1][2]. - The logistics business in the manufacturing sector generated revenue of 739 million yuan, up 7.77% year-on-year, with the consumer electronics segment contributing 686 million yuan, a growth of 7.96% year-on-year. The new customer S has shown rapid growth, while customers J and V exhibit significant development potential [2]. - The semiconductor equipment and logistics automation business achieved revenue of 93 million yuan, an increase of 8.94% year-on-year, with successful project deliveries for several well-known clients [2]. - The company continues to pursue its strategy focused on "new infrastructure, carbon neutrality, and automation," actively advancing the construction and upgrading of intelligent logistics warehouses [3]. Financial Forecast - The company forecasts EPS for 2025, 2026, and 2027 to be 1.44 yuan, 1.61 yuan, and 1.84 yuan respectively, with corresponding P/B ratios of 1.6, 1.5, and 1.4 [3][4].

Core Viewpoint - The company reported a revenue of 872 million yuan for the first half of 2025, representing a year-on-year growth of 7.46%, while the net profit attributable to shareholders decreased by 13.30% to 130 million yuan [1][2]. Financial Performance - The logistics business in the manufacturing sector achieved a revenue of 739 million yuan, up 7.77% year-on-year, with the consumer electronics segment generating 686 million yuan, a 7.96% increase, and the new energy vehicle segment reaching 53 million yuan, growing by 5.39% [2]. - The semiconductor equipment and logistics automation business reported a revenue of 93 million yuan, reflecting an 8.94% year-on-year growth, with successful project deliveries for several well-known clients [2]. - The net profit attributable to shareholders was 130 million yuan, while the non-recurring net profit was 111 million yuan, impacted by a foreign exchange loss of 6 million yuan and a decrease in interest income [2]. Future Outlook - The company is committed to its strategies of "new infrastructure, carbon neutrality, and automation," actively advancing the construction and upgrading of smart logistics warehouses [3]. - The smart equipment in the Hefei automated warehouse has been put into operation, significantly enhancing operational efficiency and automation levels, with ongoing projects in Shenzhen and Changzhou expected to be completed next year [3]. - The company plans to increase investments in smart logistics warehouse construction and cutting-edge technology research, aiming to maintain industry leadership in automation, intelligence, and sustainability [3]. - Earnings per share (EPS) forecasts for 2025-2027 are projected at 1.44, 1.61, and 1.84 yuan, with corresponding price-to-book (PB) ratios of 1.6, 1.5, and 1.4 times [3].

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [6][13]. Core Insights - The company reported a revenue of 872 million yuan in the first half of 2025, representing a year-on-year increase of 7.5%. The gross profit reached 230 million yuan, up 16.9%, with a gross margin of 26.7%, an increase of 2.2 percentage points year-on-year [1][2]. - In Q2 2025, the company achieved a revenue of 472 million yuan, a 15.2% increase year-on-year, with a gross profit of 137 million yuan, reflecting a 26.9% increase. The gross margin for this quarter was 29.0%, up 2.68 percentage points year-on-year [2]. - The company's net profit attributable to shareholders for the first half of 2025 was 130 million yuan, down 13.3% year-on-year, primarily due to non-core business factors affecting Q2 results. However, the adjusted net profit after excluding non-recurring items was 110 million yuan, a slight increase of 0.4% year-on-year [1][2]. Revenue and Profit Analysis - The company's logistics services in the manufacturing sector showed steady growth, with the consumer electronics logistics business generating 686 million yuan in revenue, up 8.0% year-on-year, and the new energy vehicle logistics business achieving 53.11 million yuan, a 5.4% increase [2]. - The automation and equipment manufacturing segment also maintained a positive growth trajectory, with a revenue of 92.87 million yuan in the first half of 2025, up 8.9% year-on-year [3]. Research and Development - The company has increased its R&D investment, with R&D expenses rising by 26.98% year-on-year in the first half of 2025. This investment supports the iteration of intelligent logistics technology [3]. - The establishment of an AI research institute and a robotics research institute aims to leverage the company's core R&D capabilities in semiconductor AMHS equipment and logistics robotics [3]. Financial Forecast - The company is expected to accelerate growth in the second half of 2025, with projected net profits of 310 million yuan, 380 million yuan, and 420 million yuan for 2025, 2026, and 2027, respectively. The earnings per share (EPS) are forecasted to be 1.34 yuan, 1.64 yuan, and 1.84 yuan for the same years [3][5]. - The current stock price corresponds to a price-to-earnings (PE) ratio of 18, 14, and 13 for the years 2025, 2026, and 2027, respectively [3][5].

Core Viewpoint - Haichen Co., Ltd. reported mixed financial results for the first half of 2025, with revenue growth but a decline in net profit compared to the previous year [1]. Financial Performance - Total revenue for the first half of 2025 reached 872 million yuan, an increase of 7.46% year-on-year [1]. - The net profit attributable to shareholders was 130 million yuan, down 13.3% from the previous year [1]. - In Q2 2025, total revenue was 472 million yuan, reflecting a year-on-year increase of 15.17% [1]. - Q2 net profit attributable to shareholders was approximately 72.46 million yuan, a decrease of 22.07% year-on-year [1]. Key Financial Ratios - Gross margin improved to 26.72%, up 8.82% year-on-year [1]. - Net margin decreased to 15.67%, down 19.67% year-on-year [1]. - Total operating expenses (selling, administrative, and financial) amounted to 64.50 million yuan, representing 7.39% of revenue, an increase of 76.37% year-on-year [1]. Balance Sheet Highlights - Accounts receivable increased to 597.1 million yuan, a rise of 19.04% year-on-year, with accounts receivable to net profit ratio at 203.43% [1][4]. - Cash and cash equivalents stood at 1.732 billion yuan, up 3.28% year-on-year [1]. - Interest-bearing debt rose significantly to 576 million yuan, an increase of 74.97% year-on-year [1]. Investment Metrics - The company's return on invested capital (ROIC) for the previous year was 7.09%, indicating average capital returns [3]. - Historical median ROIC since listing is 14.21%, suggesting better investment returns in the past [3]. - Analysts project 2025 earnings to be around 323 million yuan, with an average earnings per share estimate of 1.4 yuan [4].

Core Viewpoint - Jiangsu Haichen Logistics Co., Ltd. reported a 7.46% increase in operating revenue for the first half of 2025 compared to the same period last year, but net profit attributable to shareholders decreased by 13.30% [1][3]. Financial Performance - Operating revenue for the reporting period was CNY 872,389,903.97, up from CNY 811,860,917.48 [1]. - Net profit attributable to shareholders was CNY 130,176,180.17, down from CNY 150,138,331.11, reflecting a decrease of 13.30% [1]. - Net cash flow from operating activities was CNY 184,773,898.08, a decline of 28.28% from CNY 257,630,645.72 [1]. - Basic earnings per share decreased by 14.03% to CNY 0.5656 from CNY 0.6579 [1]. - Diluted earnings per share also decreased by 14.03% to CNY 0.5656 [1]. Asset and Equity Position - Total assets at the end of the reporting period were CNY 4,844,706,314.94, a slight increase of 0.14% from CNY 4,837,772,702.60 [3]. - Net assets attributable to shareholders were CNY 3,064,672,252.88, up by 1.40% from CNY 3,022,421,867.90 [3]. - The weighted average return on net assets was 4.28%, an increase from 4.96% at the end of the previous year [2][3]. Shareholder Information - The largest shareholder, Liang Chen, holds 35.48% of the shares, followed by Ningbo Kailai Brothers Venture Capital Partnership with 17.91% [3]. - The company has a total of 10 major shareholders, with no changes in the controlling shareholder during the reporting period [4].

Core Viewpoint - Haichen Co., Ltd. reported a revenue of 872 million yuan for the first half of 2025, reflecting a year-on-year growth of 7.46% while the net profit attributable to shareholders decreased by 13.30% to 130 million yuan [1] Financial Performance - The company's operating revenue reached 872 million yuan, marking a 7.46% increase compared to the same period last year [1] - The net profit attributable to shareholders was 130 million yuan, which represents a decline of 13.30% year-on-year [1] - The net profit after excluding non-recurring gains and losses was 111 million yuan, showing a slight increase of 0.39% year-on-year [1] - Basic earnings per share stood at 0.5656 yuan [1]

| 武汉海晨物流有 | 子公司 | 其他应收款 | 83,360.88 | 21,163,793.66 | - | 21,247,154.54 | 0.00 | 往来款 | 非经营性 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 限公司 | | | | | | | | | | | 深圳市前海晨供 应链管理有限公 | 子公司 | 其他应收款 | 222,730,491.37 | 487,362,118.87 | - | 411,446,262.85 | 298,646,347.39 | 往来款 | 非经营性 | | 司 | | | | | | | | | | | 合肥海晨仓储有 | 子公司 | 其他应收款 | 149,557.98 | 104,857,977.17 | - | 105,007,535.15 | 0.00 | 往来款 | 非经营性 | | 限公司 | | | | | | | | | | | 深圳市光明区海 晨物流科技有限 | 子公司 | 其他应收款 | 0.00 | 8,837.97 | - | 0.00 | 8 ...

Important Notice, Table of Contents, and Definitions [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board of Directors and senior management affirm the report's accuracy and completeness, highlighting forward-looking statements and company risks - The company's Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions[4](index=4&type=chunk) - The company's head, chief accountant, and accounting department head declare the financial report is true, accurate, and complete[4](index=4&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This section lists the eight main chapters of the report, covering company operations, finance, governance, and significant matters, with corresponding page numbers - The report comprises eight main chapters, covering company operations, finance, governance, and significant matters[7](index=7&type=chunk) [List of Reference Documents](index=4&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) Reference documents include signed financial statements, publicly disclosed company files, and the original semi-annual report signed by the chairman - Reference documents include financial statements signed and sealed by the legal representative, chief accountant, and head of the accounting department[9](index=9&type=chunk) - All original company documents and announcements publicly disclosed on designated websites and newspapers during the reporting period are available[10](index=10&type=chunk) - The original 2025 semi-annual report document signed by the company's chairman is included[11](index=11&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines common terms, including company abbreviations, reporting periods, currency units, and specialized logistics and semiconductor industry terminology - Defines company abbreviations, reporting period, prior year period, and currency units[13](index=13&type=chunk) - Explains logistics industry terms such as VMI (Vendor Managed Inventory), consolidation, supply chain, and Internet of Things[13](index=13&type=chunk) - Clarifies terms related to smart logistics and semiconductor material handling systems, including AGV trolleys, milk run, in-plant logistics, OHT, Lifter, Stocker, MCS, USC, and MSC[13](index=13&type=chunk) Company Profile and Key Financial Indicators [Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Jiangsu Hichain Logistics Co., Ltd., listed on the Shenzhen Stock Exchange under stock code 300873, is legally represented by Liang Chen Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Hichain Logistics | | Stock Code | 300873 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 江苏海晨物流股份有限公司 | | Legal Representative | Liang Chen | [Contacts and Contact Information](index=6&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) The company's Board Secretary and Securities Affairs Representative are listed with their contact addresses, phone numbers, fax, and email Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Chen Shuai | 13th Floor, Qianhai Xinlikang Building, Nanshan District, Shenzhen | 0512-63030888-8820 | 0512-63030684 | irm@hichain.com | | Securities Affairs Representative | Liang Can | 111 Quanhai Road, Wujiang Economic Development Zone, Suzhou, Jiangsu Province | 0512-63030888-8820 | 0512-63030684 | irm@hichain.com | [Other Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) The company's contact information, disclosure locations, and registration details remained unchanged during the reporting period - The company's registered address, office address, website, and email remained unchanged during the reporting period[18](index=18&type=chunk) - Information disclosure and storage locations remained unchanged during the reporting period[19](index=19&type=chunk) - The company's registration status remained unchanged during the reporting period[20](index=20&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In H1 2025, revenue grew by 7.46% to 872.39 million Yuan, but net profit attributable to shareholders decreased by 13.30% to 130.18 million Yuan Key Accounting Data and Financial Indicators (Current Period vs. Prior Year Period) | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 872,389,903.97 | 811,860,917.48 | 7.46% | | Net Profit Attributable to Listed Company Shareholders | 130,176,180.17 | 150,138,331.11 | -13.30% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-recurring Gains/Losses) | 111,438,002.79 | 111,003,113.54 | 0.39% | | Net Cash Flow from Operating Activities | 184,773,898.08 | 257,630,645.72 | -28.28% | | Basic Earnings Per Share (Yuan/share) | 0.5656 | 0.6579 | -14.03% | | Diluted Earnings Per Share (Yuan/share) | 0.5656 | 0.6579 | -14.03% | | Weighted Average Return on Net Assets | 4.28% | 4.96% | -0.68% | | Total Assets (Period-end) | 4,844,706,314.94 | 4,837,772,702.60 | 0.14% | | Net Assets Attributable to Listed Company Shareholders (Period-end) | 3,064,672,252.88 | 3,022,421,867.90 | 1.40% | [Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=7&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) The company reported no differences in net profit or net assets between international/overseas and Chinese accounting standards during the reporting period - The company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[22](index=22&type=chunk) - The company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[23](index=23&type=chunk) [Non-recurring Gains and Losses and Amounts](index=7&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) Total non-recurring gains and losses amounted to 18.74 million Yuan, primarily from non-current asset disposal, government grants, and other non-operating income/expenses Non-recurring Gains and Losses and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | 5,991,660.27 | | Government grants recognized in current profit or loss | 14,070,288.64 | | Other non-operating income and expenses apart from the above | 2,175,883.28 | | Less: Income tax impact | 3,464,582.33 | | Impact on minority interests (after tax) | 35,072.48 | | Total | 18,738,177.38 | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor has it classified non-recurring gains and losses as recurring gains and losses[26](index=26&type=chunk) Management Discussion and Analysis [Principal Business Activities During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company provides integrated supply chain logistics, smart logistics equipment manufacturing, and system integration services for high-end manufacturing sectors [(I) Industry Overview During the Reporting Period](index=9&type=section&id=(%E4%B8%80)%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) The manufacturing logistics industry is undergoing intelligent and green transformation, with steady growth in social logistics and accelerated domestic substitution in semiconductor AMHS - In H1 2025, the national social logistics aggregate reached **171.3 trillion Yuan**, a year-on-year increase of **5.6%**, with industrial product logistics growing by **5.8%**[29](index=29&type=chunk) - The manufacturing logistics industry is accelerating its transformation towards intelligence, automation, and agility, with large AI models deeply empowering dynamic demand forecasting, inventory optimization, and resource scheduling[30](index=30&type=chunk) - The market size for smart logistics equipment and logistics robots is projected to exceed **500 billion Yuan** in 2025, with mobile automation equipment showing the fastest growth, reaching nearly **150 billion Yuan**[33](index=33&type=chunk) - The semiconductor AMHS market is expanding, expected to reach **3.92 billion US dollars** globally and **8.15 billion Yuan** in China by 2025, with accelerated domestic substitution[35](index=35&type=chunk) [(II) Overview of Company Operations During the Reporting Period](index=11&type=section&id=(%E4%BA%8C)%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E6%A6%82%E8%BF%B0) H1 2025 revenue grew by 7.46% to 872.39 million Yuan, but net profit attributable to shareholders decreased due to exchange losses and reduced interest income 2025 H1 Company Operating Performance | Item | Current Period (10,000 Yuan) | Prior Year Period (10,000 Yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 87,238.99 | 81,186.09 | 7.46% | | Manufacturing Logistics | 73,943.03 | 68,610.01 | 7.77% | | --Consumer Electronics | 68,631.35 | 63,570.18 | 7.96% | | --New Energy Vehicles | 5,311.68 | 5,039.83 | 5.39% | | Automation and Equipment Manufacturing | 9,287.15 | 8,525.17 | 8.94% | | Other Businesses | 4,008.81 | 4,050.91 | -1.04% | | Net Profit Attributable to Parent Company | 13,017.62 | 15,013.83 | -13.30% | | Net Profit Attributable to Parent Company (Excluding Non-recurring Gains/Losses) | 11,143.80 | 11,100.31 | 0.39% | - The decrease in net profit attributable to the parent company was mainly due to **exchange losses of 6.21 million Yuan** (compared to a gain of 8.72 million Yuan in the prior year) and a **decrease in interest income of 3.79 million Yuan**[38](index=38&type=chunk)[40](index=40&type=chunk) - The company established an Artificial Intelligence Research Institute and a Robotics Research Institute, with R&D expenses increasing by **26.98%** year-on-year in H1[42](index=42&type=chunk) - The Hefei automated warehouse is operational, while Shenzhen and Changzhou automated warehouse projects are progressing steadily, expected to be operational next year[43](index=43&type=chunk) [(III) Company's Main Services and Products](index=13&type=section&id=(%E4%B8%89)%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%BB%E8%A6%81%E6%9C%8D%E5%8A%A1%E4%BA%A7%E5%93%81) The company offers manufacturing logistics services, logistics equipment and robot manufacturing, and automation and integration services, covering a wide range of supply chain solutions - Manufacturing logistics services include manufacturing center services (raw material warehousing, in-plant logistics, finished product delivery, bonded maintenance, value-added services) and domestic and international logistics services (trunk and short-haul transportation, export consolidation, milk run, customs services, international logistics)[44](index=44&type=chunk) - Logistics equipment and robotics manufacturing business covers the semiconductor and display panel industries (OHT, AGV trolleys, Lifter, Stocker, MCS) and logistics, e-commerce, and retail industries (pallet shuttles, tote shuttles, automated storage and retrieval systems, manufacturing execution systems)[45](index=45&type=chunk)[46](index=46&type=chunk) - Automation and integration business provides full-chain logistics automation and integration services, including planning, design, development, implementation, and maintenance[47](index=47&type=chunk) [(IV) Key Factors Affecting Company Performance During the Reporting Period](index=14&type=section&id=(%E5%9B%9B)%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%B8%9A%E7%BB%A9%E5%BD%B1%E5%93%8D%E5%9B%A0%E7%B4%A0) Performance growth was driven by resilient IT electronics, rapid development in new energy vehicles, and the emerging semiconductor and logistics equipment business - Resilient growth in the global IT electronics industry, with global PC shipments increasing by **4.9%** in Q1 2025 and **6.5%** in Q2, supported the steady growth of the company's consumer electronics production logistics business[48](index=48&type=chunk) - Rapid development in the new energy vehicle industry led to significant growth in the company's S client business, with J and V clients showing great potential, ensuring efficient production and delivery for clients[49](index=49&type=chunk) - The semiconductor and logistics equipment business emerged as a new highlight amidst technological innovation and the localization trend, with the company's new generation OHT overhead cranes achieving internationally leading core parameters[50](index=50&type=chunk)[51](index=51&type=chunk) [Analysis of Core Competencies](index=15&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) Hichain Logistics leverages AI, global supply chain networks, and innovative high-end logistics equipment to build intelligent and flexible core competencies - The company possesses strong capabilities in high-end logistics equipment R&D and manufacturing, with its AMHS products achieving a leading technical level domestically, further enhanced by the Robotics Research Institute[53](index=53&type=chunk) - The establishment of the Hichain Artificial Intelligence Research Institute deeply integrates AI and large model technologies, enhancing intelligent planning, decision-making, and human-machine collaboration capabilities[54](index=54&type=chunk) - A flexible production logistics and supply chain operation system has been built, achieving comprehensive coordination and dynamic linkage across production, warehousing, and transportation through an intelligent supply chain management platform[55](index=55&type=chunk)[56](index=56&type=chunk) - The company boasts strong global supply chain collaboration and cross-border logistics capabilities, having established smart logistics centers and operational teams across China, Asia, and Europe[57](index=57&type=chunk) - A professional talent system has been established, with dual research institutes (AI and Robotics) promoting deep integration of industry, academia, and research, leading to a **26.98%** year-on-year increase in R&D investment in H1 2025[58](index=58&type=chunk) [Analysis of Principal Business](index=16&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Principal business revenue reached 872.39 million Yuan, with financial expenses decreasing by 64.88% and R&D investment increasing by 26.98% Major Financial Data Year-on-Year Changes | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 872,389,903.97 | 811,860,917.48 | 7.46% | | | Operating Cost | 639,278,371.33 | 612,513,866.29 | 4.37% | | | Selling Expenses | 22,713,593.46 | 19,332,044.32 | 17.49% | | | Administrative Expenses | 54,120,403.67 | 49,827,633.50 | 8.62% | | | Financial Expenses | -12,335,829.58 | -35,126,648.34 | -64.88% | Increased exchange losses and interest expenses in current period | | Income Tax Expenses | 24,283,492.70 | 31,718,318.46 | -23.44% | | | R&D Investment | 22,722,249.59 | 17,894,643.64 | 26.98% | | | Net Cash Flow from Operating Activities | 184,773,898.08 | 257,630,645.72 | -28.28% | | | Net Cash Flow from Investing Activities | -255,752,366.52 | -306,370,497.59 | -16.52% | | | Net Cash Flow from Financing Activities | 60,313,751.60 | 289,006,915.06 | -79.13% | Increased cash payments for debt repayment in current period | | Net Increase in Cash and Cash Equivalents | -7,884,083.97 | 248,241,401.48 | -103.18% | Decrease in net cash flow from financing activities in current period | - There were no significant changes in the company's profit composition or sources of profit during the reporting period[61](index=61&type=chunk) [Analysis of Non-Principal Business](index=17&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Non-principal business income primarily includes investment gains from subsidiary disposal, government grants, and other non-operating items, which are generally non-sustainable Non-Principal Business Items and Amounts | Item | Amount (Yuan) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 5,778,281.65 | 3.59% | Investment income from disposal of subsidiaries | No | | Asset Impairment | 4,089.57 | 0.00% | Provision for bad debts on receivables and inventory write-downs | Yes | | Non-operating Income | 5,915,329.44 | 3.67% | Primarily operating compensation income | No | | Non-operating Expenses | 3,747,641.63 | 2.33% | Primarily early lease termination penalties and operating compensation expenses | No | | Other Income | 14,524,609.95 | 9.02% | Primarily government grants | No | | Gains from Asset Disposal | 367,035.94 | 0.23% | Gains from disposal of fixed assets | No | [Analysis of Assets and Liabilities](index=17&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total assets and net assets attributable to shareholders slightly increased, with notable changes in cash, construction in progress, and short-term borrowings Significant Changes in Asset Composition (Period-end vs. Year-end) | Item | Current Period-end Amount (Yuan) | Proportion of Total Assets | Prior Year-end Amount (Yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 1,732,056,654.34 | 35.75% | 1,753,169,920.10 | 36.24% | -0.49% | | Accounts Receivable | 596,935,922.10 | 12.32% | 592,705,461.82 | 12.25% | 0.07% | | Inventories | 26,153,874.18 | 0.54% | 39,879,893.42 | 0.82% | -0.28% | | Fixed Assets | 1,092,362,316.13 | 22.55% | 1,086,090,248.81 | 22.45% | 0.10% | | Construction in Progress | 369,028,734.75 | 7.62% | 317,604,045.83 | 6.57% | 1.05% | | Short-term Borrowings | 500,380,555.56 | 10.33% | 400,359,027.77 | 8.28% | 2.05% | | Long-term Borrowings | 23,298,562.74 | 0.48% | 0.00 | 0.00% | 0.48% | - The company had no major overseas assets during the reporting period[66](index=66&type=chunk) - Financial assets measured at fair value primarily consist of other equity instrument investments, with a period-end balance of **189.45 million Yuan** and a fair value change gain of **2.02 million Yuan** for the current period[67](index=67&type=chunk) - Information on restricted major assets is detailed in the financial report notes, and there were no significant changes in the measurement attributes of major assets during the reporting period[67](index=67&type=chunk) [Analysis of Investment Status](index=18&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company reported zero investment during the period, a 100% decrease year-over-year, with no significant equity or non-equity investments Investment Amount Comparison | Indicator | Current Period Investment Amount (Yuan) | Prior Year Period Investment Amount (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 0.00 | 36,901,900.00 | -100.00% | - The company had no significant equity investments, non-equity investments, financial assets measured at fair value, use of raised funds, entrusted wealth management, derivative investments, or entrusted loans during the reporting period[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) [Significant Asset and Equity Sales](index=19&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[74](index=74&type=chunk) - The company did not sell significant equity during the reporting period[75](index=75&type=chunk) [Analysis of Major Holding and Participating Companies](index=19&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Shenzhen Qianhai Chen Supply Chain Management Co., Ltd. is a key subsidiary, and the company expanded its business by establishing several new subsidiaries Major Subsidiary Financial Information | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shenzhen Qianhai Chen Supply Chain Management Co., Ltd. | Subsidiary | Transportation, warehousing, customs services | 50,000,000 | 205,018,259.99 | 195,066,645.60 | 270,770,374.44 | 63,370,990.96 | 50,581,063.94 | - The disposal of Anhui Hichain International Trade Co., Ltd. equity during the reporting period increased investment income by **5.63 million Yuan**, leading to a decrease in new retail business revenue and profit[77](index=77&type=chunk) - The establishment of Chengdu Haichuan Jiexin Technology Co., Ltd., HYY LOGISTICS TECHNOLOGY(THAILAND)CO.,LTD, Hichain Logistics Indonesia, and Hichain Logistics (New Zealand) Pte.Ltd expanded business operations, but their scale is small with no significant impact observed[77](index=77&type=chunk) [Structured Entities Controlled by the Company](index=20&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[78](index=78&type=chunk) [Risks Faced by the Company and Countermeasures](index=20&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company addresses risks from international trade, industry volatility, exchange rates, and customer concentration through strategic布局, R&D, and financial management - International trade environment and geopolitical conflicts may affect global supply chain stability; the company will accelerate regional supply chain layout, expand diversified overseas business locations, and strengthen international logistics partner collaboration[78](index=78&type=chunk) - IT manufacturing industry volatility risks may impact company performance; the company will increase R&D, expand into high-growth areas like new energy vehicles and semiconductors, and deepen ecological collaboration with strategic partners[79](index=79&type=chunk)[80](index=80&type=chunk) - Exchange rate fluctuation risks may affect performance; the company will improve dynamic exchange rate monitoring and early warning mechanisms, optimize foreign exchange fund management strategies, and promote business internationalization and diversification of revenue and expenditure currencies[81](index=81&type=chunk) - High customer concentration may lead to decreased customer demand; the company will deepen strategic cooperation with core customers, accelerate new industry, new region, and new customer development, and improve the dynamic customer risk assessment system[82](index=82&type=chunk) - Risks of new customer development setbacks may affect operating performance; the company will strengthen industry solution packaging capabilities, implement precise customer segmentation strategies, optimize customer experience, and increase promotion of technological innovation[83](index=83&type=chunk) [Registration Form for Research, Communication, and Interview Activities During the Reporting Period](index=21&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) The company hosted an online investor communication event on May 14, 2025, discussing its 2024 annual and Q1 2025 operating performance - On May 14, 2025, the company hosted an online communication event via a network platform, engaging with various institutional and individual investors[86](index=86&type=chunk) - The discussion primarily focused on the company's operating performance for the full year 2024 and Q1 2025[86](index=86&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=22&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not formulated a market value management system or disclosed a valuation enhancement plan during the reporting period - The company has not formulated a market value management system[87](index=87&type=chunk) - The company has not disclosed a valuation enhancement plan[87](index=87&type=chunk) [Implementation of "Quality and Return Dual Improvement" Action Plan](index=22&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%22%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%22%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan during the reporting period - The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan[87](index=87&type=chunk) Corporate Governance, Environment, and Society [Changes in Directors, Supervisors, and Senior Management](index=23&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Supervisors Wang Wei, Ling Xia, and Shen Yijing resigned due to term expiration and the abolition of the Board of Supervisors as per company articles Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Wang Wei | Chairman of the Board of Supervisors | Term expiration | June 28, 2025 | Supervisor term expired, Board of Supervisors abolished per Articles of Association | | Ling Xia | Supervisor | Term expiration | June 28, 2025 | Supervisor term expired, Board of Supervisors abolished per Articles of Association | | Shen Yijing | Supervisor | Term expiration | June 28, 2025 | Supervisor term expired, Board of Supervisors abolished per Articles of Association | [Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period](index=23&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[90](index=90&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=23&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company implemented a 2025 restricted stock incentive plan, granting 2.4 million shares to 32 individuals at 10.81 Yuan/share, with performance-based vesting - The company granted **2.4 million** first-class restricted shares to **32 incentive recipients** (including 4 senior executives and 28 core personnel), accounting for **1.04%** of the total share capital, at a grant price of **10.81 Yuan/share**[91](index=91&type=chunk) - The incentive plan involves three vesting periods (30% after 12 months, 30% after 24 months, 40% after 36 months), with assessment conditions requiring revenue growth rates of no less than **8%**, **16%**, and **24%** for 2025-2027 respectively, compared to 2024, and satisfactory individual performance[91](index=91&type=chunk) - There were no employee stock ownership plans or other employee incentive measures during the reporting period[92](index=92&type=chunk) [Environmental Information Disclosure](index=24&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[93](index=93&type=chunk) [Social Responsibility](index=24&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) Hichain Logistics integrates technological innovation with social value, actively fulfilling social responsibilities in compliance, innovation, employee welfare, green development, and philanthropy [(I) Upholding Compliance, Safeguarding Shareholder Rights](index=24&type=section&id=(%E4%B8%80)%E5%9D%9A%E5%AE%88%E5%90%88%E8%A7%84%EF%BC%8C%E7%A8%B3%E5%9B%BA%E8%82%A1%E4%B8%9C%E6%9D%83%E7%9B%8A) The company adheres to laws, improves governance, ensures transparent information disclosure, and proposed a 2024 profit distribution plan to reward shareholders - The company strictly adheres to laws and regulations, revised its Articles of Association, and improved its corporate governance structure[94](index=94&type=chunk) - The company strictly discloses its operating information and significant matters truthfully, accurately, completely, and timely, in accordance with the "Shenzhen Stock Exchange Stock Listing Rules" and other regulations[94](index=94&type=chunk) - The proposed 2024 annual profit distribution plan is to distribute a cash dividend of **4.0 Yuan (tax inclusive)** per 10 shares, based on the total share capital (excluding repurchased shares)[94](index=94&type=chunk) [(II) Innovation Leadership, Empowering Industry Development](index=24&type=section&id=(%E4%BA%8C)%E5%88%9B%E6%96%B0%E9%A2%86%E8%88%AA%EF%BC%8C%E8%B5%8B%E8%83%BD%E8%A1%8C%E4%B8%9A%E5%8F%91%E5%B1%95) The company established AI and Robotics Research Institutes to integrate advanced technologies into logistics, enhancing intelligent prediction and operational efficiency - The company established the "Hichain Artificial Intelligence Research Institute" and "Hichain Robotics Research Institute," focusing on the application of cutting-edge technologies such as large models, machine learning, human-machine collaboration, and AIOT in logistics scenarios[95](index=95&type=chunk) - Collaborating with several renowned domestic universities, the company conducts research in key areas such as logistics robot cluster collaboration, intelligent warehousing scheduling algorithms, and logistics big data analysis and application[95](index=95&type=chunk) - Actively integrating artificial intelligence technology throughout the entire logistics service process, utilizing AI visual recognition and machine learning algorithms to improve the efficiency of automatic cargo identification, sorting, inventory, and distribution planning[96](index=96&type=chunk)[97](index=97&type=chunk) [(III) Employee-Centric, Energizing Team Vitality](index=25&type=section&id=(%E4%B8%89)%E5%91%98%E5%B7%A5%E4%B8%BA%E6%9C%AC%EF%BC%8C%E6%BF%80%E5%8F%91%E5%9B%A2%E9%98%9F%E6%B4%BB%E5%8A%9B) The company implemented a restricted stock incentive plan and established multi-dimensional career development paths to enhance employee skills and engagement - Successfully implemented the 2025 restricted stock incentive plan, granting restricted shares to over 30 core technical and management personnel, aligning employee interests with company development[98](index=98&type=chunk) - Established multi-dimensional employee career development pathways, covering management, technical, and business series, enhancing employee quality through on-the-job learning, internal training, mentorship, and rotation programs[99](index=99&type=chunk) - Implemented a "key project management system" and project review and sharing mechanisms, with over **90%** of the management team having experience in major projects[99](index=99&type=chunk) [(IV) Green Development, Fulfilling Environmental Commitments](index=25&type=section&id=(%E5%9B%9B)%E7%BB%BF%E8%89%B2%E5%8F%91%E5%B1%95%EF%BC%8C%E8%B7%B5%E8%A1%8C%E7%8E%AF%E4%BF%9D%E6%89%BF%E8%AF%BA) The company promotes smart warehousing, optimizes transportation routes, and adopts green packaging to reduce energy consumption and carbon emissions - Continuously promotes the use of smart warehousing systems and actively explores innovative ways to save energy and reduce consumption in warehousing operations[100](index=100&type=chunk) - Actively advances the green transformation of its transportation structure, utilizing AI to optimize transportation routes, reduce vehicle empty load rates, and decrease energy consumption and carbon emissions[100](index=100&type=chunk) - Steadfastly implements green packaging concepts to achieve more sustainable packaging solutions and enhance resource utilization efficiency[100](index=100&type=chunk) [(V) Dedicated to Public Welfare, Fulfilling Social Responsibility](index=25&type=section&id=(%E4%BA%94)%E7%83%AD%E5%BF%83%E5%85%AC%E7%9B%8A%EF%BC%8C%E6%8B%85%E5%BD%93%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) The company actively engages in philanthropy, donating to local charities for community support and educational initiatives - During the Spring Festival, the company donated **0.3 million Yuan** to the Suzhou Wujiang District Charity Federation for local hardship relief, medical assistance, and other livelihood projects[101](index=101&type=chunk) - Donated educational and living supplies to the Wujiang Jiuyi Student Aid Service Center, distributed to needy student families in Long'e Village, Liping County, Guizhou Province, and parts of Wujiang District[102](index=102&type=chunk) - Supports university scientific research innovation and talent cultivation, reserving talent for the development of the smart logistics industry[102](index=102&type=chunk) Significant Matters [Commitments Fulfilled and Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=27&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) All commitments made by the controlling shareholder, major shareholders, and directors, supervisors, and senior management were fulfilled on time during the reporting period - Actual controllers Liang Chen and Liang Zhirui committed that after the lock-up period expires, they will not transfer more than **25%** of their directly or indirectly held shares annually, will not transfer shares within six months of resignation, and the reduction price will not be lower than the issue price[106](index=106&type=chunk) - The actual controllers committed to initiating a share repurchase program and bearing compensation liability in accordance with the law if the company engages in fraudulent issuance[106](index=106&type=chunk) - Company shareholder Ningbo Kailai Brothers Venture Capital Partnership (Limited Partnership) committed to complying with relevant regulations for share reductions, with the reduction price not lower than the issue price[106](index=106&type=chunk)[107](index=107&type=chunk) - The company and relevant directors, supervisors, and senior management committed to bearing compensation liability in accordance with the law, and measures for non-fulfillment of commitments were explained[107](index=107&type=chunk)[108](index=108&type=chunk) - Shares subscribed by actual controller Liang Chen in the refinancing cannot be transferred within **36 months** from the end of the issuance[108](index=108&type=chunk) - All commitments were fulfilled normally and on time[108](index=108&type=chunk) [Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company](index=29&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) There were no instances of non-operating funds being occupied by the controlling shareholder or other related parties from the listed company during the reporting period - There were no instances of non-operating funds being occupied by the controlling shareholder or other related parties from the listed company during the reporting period[109](index=109&type=chunk) [Irregular External Guarantees](index=29&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[110](index=110&type=chunk) [Appointment and Dismissal of Accounting Firms](index=29&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[111](index=111&type=chunk) [Explanation by the Board of Directors, Board of Supervisors, and Audit Committee on the "Non-Standard Audit Report" for This Reporting Period](index=30&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E3%80%81%E5%AE%A1%E8%AE%A1%E5%A7%94%E5%91%98%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9A%84%E8%AF%B4%E6%98%8E) The company did not receive a non-standard audit report for the current reporting period - The company did not receive a non-standard audit report for the current reporting period[112](index=112&type=chunk) [Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year](index=30&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company did not provide an explanation regarding a non-standard audit report for the previous year - The company did not provide an explanation regarding a non-standard audit report for the previous year[112](index=112&type=chunk) [Bankruptcy and Reorganization Matters](index=30&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company did not experience any bankruptcy or reorganization matters during the reporting period - The company did not experience any bankruptcy or reorganization matters during the reporting period[112](index=112&type=chunk) [Litigation Matters](index=30&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company had no significant litigation or arbitration matters, with minor cases either settled or ongoing - The company had no significant litigation or arbitration matters during the current reporting period[113](index=113&type=chunk) Other Litigation Matters | Litigation (Arbitration) Basic Information | Amount Involved (10,000 Yuan) | Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Litigation (Arbitration) Judgment Execution Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Other non-significant litigation or arbitration matters during the reporting period (total) -- Concluded | 737.52 | No | Freight-related disputes, settlement agreements reached | Settlement agreements reached | Performed on schedule | | Other non-significant litigation or arbitration matters during the reporting period (total) -- Unconcluded | 45.02 | No | Company sued for 450,184.54 Yuan, all cases are under review | Under review | - | [Penalties and Rectification](index=30&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company had no significant penalties or rectification situations during the reporting period - The company had no significant penalties or rectification situations during the reporting period[114](index=114&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=30&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) The company, its controlling shareholder, and actual controller maintained good integrity status during the reporting period - The company, its controlling shareholder, and actual controller had no integrity issues during the reporting period[115](index=115&type=chunk) [Significant Related Party Transactions](index=31&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company reported no significant related party transactions, including those related to daily operations, asset/equity sales, joint investments, or financial dealings - The company had no related party transactions related to daily operations during the reporting period[116](index=116&type=chunk) - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[117](index=117&type=chunk) - The company had no related party transactions involving joint external investment during the reporting period[118](index=118&type=chunk) - The company had no related party debt or credit transactions during the reporting period[119](index=119&type=chunk) - The company had no financial business transactions with related financial companies or financial companies controlled by the company and related parties, including deposits, loans, credit lines, or other financial services[120](index=120&type=chunk)[121](index=121&type=chunk) - The company had no other significant related party transactions during the reporting period[122](index=122&type=chunk) [Significant Contracts and Their Performance](index=31&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company has no significant entrustment or contracting arrangements but leases 372,400 square meters of warehouse space and provides a guarantee for a subsidiary - The company had no entrustment situations during the reporting period[123](index=123&type=chunk) - The company had no contracting situations during the reporting period[125](index=125&type=chunk) - As of the end of the reporting period, the company leased a total of **372,400 square meters** of warehouse space[126](index=126&type=chunk) Company Guarantees for Subsidiaries | Guaranteed Entity Name | Guarantee Limit (10,000 Yuan) | Actual Guarantee Amount (10,000 Yuan) | Guarantee Type | Guarantee Period | | :--- | :--- | :--- | :--- | :--- | | Changzhou Hichain Supply Chain Management Co., Ltd. | 60,000.00 | 2,327.93 | Joint and several liability guarantee | Three years after the maturity of the principal debt | - The company had no significant contracts for daily operations or other significant contracts during the reporting period[130](index=130&type=chunk) [Explanation of Other Significant Matters](index=33&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[131](index=131&type=chunk) [Significant Matters of Company Subsidiaries](index=33&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) There were no significant matters concerning the company's subsidiaries during the reporting period - There were no significant matters concerning the company's subsidiaries during the reporting period[132](index=132&type=chunk) Share Changes and Shareholder Information [Share Change Status](index=34&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Total share capital remained unchanged, but restricted shares increased due to the grant of 2.4 million restricted shares to 32 incentive recipients Share Change Status | Share Class | Quantity Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 61,362,094 | 26.61% | 2,400,000 | 63,762,094 | 27.65% | | II. Unrestricted Shares | 169,239,685 | 73.39% | -2,400,000 | 166,839,685 | 72.35% | | III. Total Shares | 230,601,779 | 100.00% | 0 | 230,601,779 | 100.00% | - The share change was due to the company granting **2.4 million** restricted shares to **32 incentive recipients**, with the transfer registration completed on May 12, 2025[135](index=135&type=chunk)[136](index=136&type=chunk) - The company completed its share repurchase plan on February 6, 2025, having repurchased a total of **1.93 million shares**, accounting for **0.84%** of the total share capital, with a total transaction amount of **31.67 million Yuan**[137](index=137&type=chunk) Restricted Share Changes | Shareholder Name | Restricted Shares at Period Start (shares) | Shares Unrestricted in Current Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at Period End (shares) | Reason for Restriction | Proposed Unrestriction Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2025 Restricted Stock Incentive Plan Grantees (32 individuals) | 0 | 0 | 2,400,000 | 2,400,000 | Restricted Stock | 30% unlocked after 12/24/36 months respectively | [Securities Issuance and Listing](index=35&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[140](index=140&type=chunk) [Number of Shareholders and Shareholding Status](index=35&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the reporting period end, the company had 15,872 common shareholders, with Liang Chen as the largest shareholder holding 35.48% - As of the end of the reporting period, the total number of common shareholders was **15,872**[141](index=141&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Shares Held at Period End (shares) | Restricted Shares Held (shares) | Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Liang Chen | Domestic Natural Person | 35.48% | 81,816,125 | 61,362,094 | 20,454,031 | | Ningbo Kailai Brothers Venture Capital Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 17.91% | 41,292,000 | 0 | 41,292,000 | | Shenzhen Yuanzhi Ruixin Equity Investment Management Co., Ltd. - Shenzhen Yuanzhi Ruixin Smart Airport Logistics Industry Private Equity Investment Base Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 1.99% | 4,600,000 | 0 | 4,600,000 | - Ningbo Kailai Brothers Venture Capital Partnership (Limited Partnership) is the company's employee stock ownership platform, with its executive partner being the company's actual controller, Liang Chen[142](index=142&type=chunk) - As of the end of the reporting period, the company's special securities account for repurchased shares held **1.47 million shares**, accounting for **0.64%** of the company's total share capital, ranking fourth among the top 10 shareholders[142](index=142&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=37&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) Several directors and senior management increased their shareholdings due to the equity incentive plan, receiving restricted shares Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Shares Held at Period Start (shares) | Shares Increased in Current Period (shares) | Shares Held at Period End (shares) | Restricted Shares Granted at Period End (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yao Peiqin | Director, Deputy General Manager | In office | 0 | 300,000 | 300,000 | 300,000 | | Liang Huaqin | Deputy General Manager | In office | 0 | 300,000 | 300,000 | 300,000 | | Chen Shuai | Board Secretary, Deputy General Manager | In office | 0 | 300,000 | 300,000 | 300,000 | | Wu Xiaowei | Financial Controller | In office | 0 | 30,000 | 30,000 | 30,000 | | Total | -- | -- | 0 | 930,000 | 930,000 | 930,000 | [Changes in Controlling Shareholder or Actual Controller](index=37&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) There were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[145](index=145&type=chunk) - The company's actual controller did not change during the reporting period[146](index=146&type=chunk) [Preferred Share Information](index=38&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[147](index=147&type=chunk) Bond-Related Information [Bond-Related Information](index=39&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no bond-related activities during the reporting period - The company had no bond-related activities during the reporting period[149](index=149&type=chunk) Financial Report [Audit Report](index=40&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[151](index=151&type=chunk) [Financial Statements](index=40&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's consolidated and parent company financial statements for H1 2025, detailing financial position, operating results, and cash flows - The consolidated balance sheet shows total assets of **4.85 billion Yuan** and net assets attributable to the parent company of **3.07 billion Yuan** at period-end[155](index=155&type=chunk) - The consolidated income statement shows total operating revenue of **872.39 million Yuan**, net profit of **136.70 million Yuan**, and net profit attributable to parent company shareholders of **130.18 million Yuan** for the current period[163](index=163&type=chunk) - The consolidated cash flow statement shows net cash flow from operating activities of **184.77 million Yuan**, net cash used in investing activities of **255.75 million Yuan**, and net cash flow from financing activities of **60.31 million Yuan**[170](index=170&type=chunk) [1、Consolidated Balance Sheet](index=40&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, consolidated total assets were 4.85 billion Yuan, total liabilities 1.51 billion Yuan, and total owner's equity 3.33 billion Yuan Consolidated Balance Sheet Key Data | Item | Period-end Balance (Yuan) | Period-start Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 4,844,706,314.94 | 4,837,772,702.60 | | Total Current Assets | 2,519,157,810.32 | 2,512,094,532.05 | | Total Non-current Assets | 2,325,548,504.62 | 2,325,678,170.55 | | Total Liabilities | 1,514,773,147.09 | 1,556,761,807.60 | | Total Owner's Equity | 3,329,933,167.85 | 3,281,010,895.00 | | Total Owner's Equity Attributable to Parent Company | 3,064,672,252.88 | 3,022,421,867.90 | [2、Parent Company Balance Sheet](index=42&type=section&id=2%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the parent company's total assets were 3.14 billion Yuan, total liabilities 1.21 billion Yuan, and total owner's equity 1.94 billion Yuan Parent Company Balance Sheet Key Data | Item | Period-end Balance (Yuan) | Period-start Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 3,143,951,532.85 | 2,842,372,315.81 | | Total Current Assets | 2,117,653,512.08 | 1,820,548,531.08 | | Total Non-current Assets | 1,026,298,020.77 | 1,021,823,784.73 | | Total Liabilities | 1,207,760,326.02 | 858,926,918.09 | | Total Owner's Equity | 1,936,191,206.83 | 1,983,445,397.72 | [3、Consolidated Income Statement](index=44&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2025, consolidated total operating revenue was 872.39 million Yuan, with net profit of 136.70 million Yuan and basic EPS of 0.5656 Yuan Consolidated Income Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 872,389,903.97 | 811,860,917.48 | | II. Total Operating Costs | 734,243,195.16 | 669,978,112.69 | | III. Operating Profit | 158,820,725.92 | 193,164,757.95 | | IV. Total Profit | 160,988,413.73 | 190,099,151.17 | | V. Net Profit | 136,704,921.03 | 158,380,832.71 | | Net Profit Attributable to Parent Company Shareholders | 130,176,180.17 | 150,138,331.11 | | VIII. Earnings Per Share: Basic Earnings Per Share | 0.5656 | 0.6579 | [4、Parent Company Income Statement](index=46&type=section&id=4%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2025, the parent company's operating revenue was 271.92 million Yuan, with net profit of 40.40 million Yuan, a year-over-year increase of approximately 100% Parent Company Income Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | I. Operating Revenue | 271,924,831.91 | 107,651,146.33 | | II. Operating Profit | 39,669,424.66 | 23,878,464.34 | | III. Total Profit | 45,197,763.34 | 22,657,699.58 | | IV. Net Profit | 40,397,887.94 | 20,200,393.55 | [5、Consolidated Cash Flow Statement](index=48&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) H1 2025 saw net cash flow from operating activities of 184.77 million Yuan, net cash used in investing activities of 255.75 million Yuan, and net cash from financing activities of 60.31 million Yuan Consolidated Cash Flow Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 184,773,898.08 | 257,630,645.72 | | Net Cash Flow from Investing Activities | -255,752,366.52 | -306,370,497.59 | | Net Cash Flow from Financing Activities | 60,313,751.60 | 289,006,915.06 | | Net Increase in Cash and Cash Equivalents | -7,884,083.97 | 248,241,401.48 | | Cash and Cash Equivalents at Period End | 1,732,047,944.09 | 1,666,011,630.19 | [6、Parent Company Cash Flow Statement](index=49&type=section&id=6%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) H1 2025 saw net cash flow from operating activities of -128.40 million Yuan, net cash from investing activities of 11.39 million Yuan, and net cash from financing activities of 117.18 million Yuan Parent Company Cash Flow Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -128,401,502.24 | -151,568,382.98 | | Net Cash Flow from Investing Activities | 11,387,085.81 | -47,860,728.76 | | Net Cash Flow from Financing Activities | 117,176,278.87 | 223,955,762.88 | | Net Increase in Cash and Cash Equivalents | -444,521.44 | 26,051,229.97 | | Cash and Cash Equivalents at Period End | 270,456,439.39 | 403,490,809.13 | [7、Consolidated Statement of Changes in Owner's Equity](index=50&type=section&id=7%E3%80%81%E5%90%88%E5%B9%B6%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) Consolidated owner's equity increased by 48.92 million Yuan, primarily due to comprehensive income and changes in capital contributions and profit distribution Consolidated Statement of Changes in Owner's Equity | Item | H1 2025 Period-end Balance (Yuan) | H1 2025 Period-start Balance (Yuan) | | :--- | :--- | :--- | | Share Capital | 230,601,779.00 | 230,601,779.00 | | Capital Reserve | 1,288,462,334.52 | 1,310,920,081.05 | | Less: Treasury Stock | 57,006,546.34 | 81,745,877.10 | | Other Comprehensive Income | 25,647,202.78 | 24,202,230.60 | | Surplus Reserve | 81,184,355.69 | 81,184,355.69 | | Undistributed Profit | 1,495,783,127.23 | 1,457,259,298.66 | | Total Owner's Equity Attributable to Parent Company | 3,064,672,252.88 | 3,022,421,867.90 | | Minority Interests | 265,260,914.97 | 258,589,027.10 | | Total Owner's Equity | 3,329,933,167.85 | 3,281,010,895.00 | [8、Parent Company Statement of Changes in Owner's Equity](index=54&type=section&id=8%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) Parent company owner's equity decreased by 47.25 million Yuan, influenced by comprehensive income, capital changes, and profit distribution Parent Company Statement of Changes in Owner's Equity | Item | H1 2025 Period-end Balance (Yuan) | H1 2025 Period-start Balance (Yuan) | | :--- | :--- | :--- | | Share Capital | 230,601,779.00 | 230,601,779.00 | | Capital Reserve | 1,287,126,525.55 | 1,309,584,272.08 | | Less: Treasury Stock | 57,006,546.34 | 81,745,877.10 | | Other Comprehensive Income | 3,780,029.91 | 2,061,341.37 | | Surplus Reserve | 81,184,355.69 | 81,184,355.69 | | Undistributed Profit | 390,505,063.02 | 441,759,526.68 | | Total Owner's Equity | 1,936,191,206.83 | 1,983,445,397.72 | [Company Basic Information](index=57&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Jiangsu Hichain Logistics Co., Ltd. has a registered capital of 230.60 million RMB, with Liang Chen as legal representative, operating in transportation, warehousing, and postal services - Company Name: Jiangsu Hichain Logistics Co., Ltd., registered capital of **230.60 million RMB**[186](index=186&type=chunk) - Legal Representative: Liang Chen, Industry: Transportation, Warehousing, and Postal Services (G)[186](index=186&type=chunk) - Principal Business: Manufacturing production logistics solutions and operation management services, and logistics automation equipment production, sales, and integration services[186](index=186&type=chunk) - Approval date for this financial report: August 25, 2025[186](index=186&type=chunk) [Basis of Financial Statement Preparation](index=58&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The financial statements are prepared on a going concern basis, adhering to Chinese Accounting Standards, covering January 1 to June 30, 2025 - The company prepares its financial statements on a going concern basis, in accordance with the "Accounting Standards for Business Enterprises - Basic Standards" and other accounting standards[188](index=188&type=chunk)[189](index=189&type=chunk) - The current accounting period is from January 1, 2025, to June 30, 2025[192](index=192&type=chunk) - The abbreviations for each subsidiary within the scope of consolidation are clearly defined to avoid ambiguity[190](index=190&type=chunk) [Significant Accounting Policies and Estimates](index=58&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's accounting policies and estimates for various financial items, including financial instruments, revenue recognition, and leases - The company adheres to Enterprise Accounting Standards, with the accounting period from January 1 to December 31 of the Gregorian calendar, a business cycle of 12 months, and RMB as the functional currency[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) - Detailed accounting treatment methods for business combinations under common control and non-common control, as well as procedures for preparing consolidated financial statements and accounting for special transactions, are specified[196](index=196&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) - Financial instruments are classified into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss, with detailed explanations of their recognition, derecognition, measurement, and impairment methods[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk) - Revenue recognition and measurement policies are disclosed based on business types (logistics services, warehousing services, goods sales), primarily recognized when customers obtain control of the related goods or services[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - Lease accounting treatment methods differentiate between lessees and lessors, detailing initial and subsequent measurement of right-of-use assets and lease liabilities,

Group 1: Express Delivery Industry - In July, SF Express achieved a business volume growth rate of 34%, leading among all express companies [1][2] - During the week of August 11-17, the total collection volume of postal express was approximately 3.523 billion pieces, with a week-on-week decrease of 0.06% and a year-on-year increase of 11.81% [1][2] - The total delivery volume during the same week was about 3.511 billion pieces, with a week-on-week decrease of 0.09% and a year-on-year increase of 15.11% [1][2] - By July 2025, the year-on-year business volume growth rates for SF Express, Yunda, YTO, and Shentong are projected to be 33.7%, 7.6%, 20.8%, and 11.9% respectively, with market shares of 8.4%, 13.2%, 15.8%, and 13.3% [1][2] - The "anti-involution" trend has led to price increases in several grain-producing areas, and with the peak season approaching, it is expected that the price per express delivery will rise [1][2] Group 2: Logistics Sector - The chemical product price index (CCPI) in China is currently at 4024 points, showing a year-on-year decrease of 10.3% [3] - The domestic sea freight price for liquid chemicals is 158 yuan/ton, reflecting a year-on-year decrease of 8.4% [3] - The operational rates for paraxylene (PX), methanol, and ethylene glycol are 84.6%, 80.7%, and 65.1% respectively, with varying year-on-year changes [3] - The establishment of the "Haimorning Artificial Intelligence Research Institute" and "Haimorning Robotics Research Institute" aims to focus on advanced technologies in logistics [3] - The airline sector is experiencing an increase in average daily flights, with a year-on-year growth of 4.18% [3] Group 3: Shipping Industry - The crude oil transportation index has increased, while the domestic shipping index continues to rise [4] - The China Export Container Freight Index (CCFI) is at 1174.87 points, with a year-on-year decrease of 40.5% [4] - The domestic container freight index (PDCI) is at 1091 points, showing a year-on-year increase of 15.9% [4] - The BDI index for dry bulk shipping is at 1950 points, with a year-on-year increase of 11.7% [4] - The oil transportation sector is expected to see a demand boost due to OPEC+ production increases and geopolitical factors [4] Group 4: Road, Rail, and Port Operations - The total cargo throughput at ports decreased by 2.8% week-on-week, but increased by 3.8% year-on-year [5] - The total container throughput was 6.75 million TEUs, with a week-on-week decrease of 0.6% and a year-on-year increase of 6.6% [5] - The total number of trucks passing through highways was 54.93 million, reflecting a week-on-week increase of 3.06% and a year-on-year increase of 4.65% [5] - The dividend yield of major highway operators is currently higher than the yield of China's ten-year government bonds, indicating attractive investment opportunities [5]

Investment Rating - The report recommends investing in SF Holding, Hainan Airlines, and Southern Airlines due to their strong performance and market positioning [2][4]. Core Views - The express delivery sector is experiencing significant growth, with SF Express leading the way with a 34% increase in business volume in July. The overall express delivery market is expected to see price increases due to rising costs in grain-producing areas and the upcoming peak season [2]. - The logistics sector is focusing on smart logistics, with Hai Chen Co. launching AI and robotics research initiatives to enhance operational efficiency [3]. - The aviation sector shows a positive trend, with domestic flights increasing by 3.07% year-on-year. Airlines are expected to benefit from supply-demand optimization, leading to potential fare increases and profit elasticity [4]. - The shipping sector is witnessing a recovery in oil transportation indices, with expectations of increased demand due to OPEC+ production adjustments and sanctions on Iran and India [5]. - The road and rail sectors are showing stable growth, with highway truck traffic increasing by 3.06% week-on-week, indicating a robust logistics environment [6][78]. Summary by Sections Express Delivery - In July, SF Express achieved a business volume growth of 34%, leading the industry. The total express delivery volume for the week of August 11-17 was approximately 3.523 billion pieces, with a year-on-year increase of 11.81% [2]. - The market shares for major players in July 2025 are as follows: SF Express (8.4%), Yunda (13.2%), YTO (15.8%), and Shentong (13.3%) [2]. Logistics - The chemical product price index is at 4024 points, down 10.3% year-on-year. The domestic sea freight price for liquid chemicals is 158 RMB/ton, down 8.4% year-on-year [3]. - Hai Chen Co. is focusing on AI and robotics to enhance logistics efficiency, indicating a shift towards smart logistics solutions [3]. Aviation - The average daily flight operations increased to 17,321 flights, a year-on-year increase of 4.18%. Domestic flights saw a 3.07% increase, while international flights increased by 11.87% compared to 2019 [4]. - The Brent crude oil price is at $67.73/barrel, reflecting a 2.85% increase week-on-week, which may impact airline operational costs [4][65]. Shipping - The China Export Container Freight Index (CCFI) is at 1174.87 points, down 1.5% week-on-week and down 40.5% year-on-year. The Shanghai Export Container Freight Index (SCFI) is at 1415.36 points, down 3.1% week-on-week and down 52.2% year-on-year [5][21]. - The oil transportation index (BDTI) is at 1019 points, reflecting a 0.5% increase week-on-week and a 9.2% increase year-on-year [5][34]. Road and Rail - The national railway passenger volume in July was 455 million, a year-on-year increase of 6.6%. The railway freight volume was 452 million tons, up 4.5% year-on-year [78]. - The national highway freight traffic for the week of August 11-17 was 54.93 million vehicles, a week-on-week increase of 3.06% and a year-on-year increase of 4.65% [6][82].