秦港股份(601326) - 2025 Q2 - 季度财报

Part I Definitions of Common Terms This section provides definitions of common terms used throughout the report to ensure clarity and accurate understanding - The reporting period refers to the six months ended June 30, 2025[12] - Qinhuangdao Port Co., Ltd. refers to Qinhuangdao Port Co., Ltd. and its subsidiaries[12] - Hebei Port Group is the company's controlling shareholder, directly holding 58.27% of the company's equity as of the end of the reporting period[12] Part II Company Profile and Key Financial Indicators I. Company Information This section outlines the basic information of Qinhuangdao Port Co., Ltd., including its Chinese name, abbreviation, foreign name, and legal representative - The company's Chinese name is Qinhuangdao Port Co., Ltd., abbreviated as Qinhuangdao Port[15] - The company's legal representative is Zhang Xiaoqiang[15] II. Contacts and Contact Information This section provides contact information for the company's Board Secretary and Securities Affairs Representative, facilitating communication with investors and relevant parties - The Board Secretary is Gao Feng, and the Securities Affairs Representative is Tian Hongwei[16] - The company's contact number is 0335-3099676, and the email address is qggf@portqhd.com[16] III. Overview of Changes in Basic Information This section states that there were no changes in the company's basic information, such as registered address and office address, during the reporting period - The company's registered address and office address are both No. 35 Haibin Road, Haigang District, Qinhuangdao City, Hebei Province[17] - There were no historical changes to the company's registered address during the reporting period[17] IV. Overview of Changes in Information Disclosure and Document Storage Locations This section lists the company's designated newspapers and websites for information disclosure, stating no changes occurred during the reporting period - The company's selected newspapers for information disclosure are China Securities Journal, Shanghai Securities News, and Securities Times[18] - The websites for publishing the semi-annual report are www.sse.com.cn and www.hkexnews.hk[18](index=18&type=chunk) V. Company Stock Overview This section introduces the listing exchanges, stock abbreviations, and stock codes for the company's A-shares and H-shares - The company's A-shares are listed on the Shanghai Stock Exchange, stock code 601326[19] - The company's H-shares are listed on The Stock Exchange of Hong Kong Limited, stock code 03369[19] VII. Company's Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue and net profit attributable to the parent company slightly decreased year-on-year, and net cash flow from operating activities significantly reduced, while net assets and total assets continued to grow Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (RMB) | Prior Period (RMB) | YoY Change (%) | | :------------- | :------------------ | :------- | :-------------------------- | | Operating Revenue | 3,451,139,185.64 | 3,461,594,202.34 | -0.30 | | Total Profit | 1,213,612,733.55 | 1,237,012,567.93 | -1.89 | | Net Profit Attributable to Shareholders of Listed Company | 987,828,180.50 | 1,010,289,679.26 | -2.22 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | 981,641,047.18 | 943,123,979.64 | 4.08 | | Net Cash Flow from Operating Activities | 1,013,499,405.65 | 1,481,449,302.79 | -31.59 | | Period-end Data | Current Period-end (RMB) | Prior Year-end (RMB) | Change from Prior Year-end (%) | | Net Assets Attributable to Shareholders of Listed Company | 19,904,278,149.56 | 19,329,265,694.28 | 2.97 | | Total Assets | 28,499,425,170.55 | 27,880,013,639.48 | 2.22 | Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :------------- | :------------------ | :------- | :-------------------------- | | Basic Earnings Per Share (RMB/share) | 0.18 | 0.18 | - | | Diluted Earnings Per Share (RMB/share) | 0.18 | 0.18 | - | | Basic EPS After Deducting Non-recurring Gains and Losses (RMB/share) | 0.18 | 0.17 | 5.88 | | Weighted Average Return on Net Assets (%) | 4.98 | 5.35 | Decrease by 0.37 percentage points | | Weighted Average Return on Net Assets After Deducting Non-recurring Gains and Losses (%) | 4.94 | 4.99 | Decrease by 0.05 percentage points | IX. Non-recurring Gains and Losses Items and Amounts This section details the company's non-recurring gains and losses items and their amounts for the first half of 2025, totaling RMB 6.1871 million Non-recurring Gains and Losses Items and Amounts for H1 2025 | Non-recurring Gains and Losses Item | Amount (RMB) | | :----------------- | :-------- | | Gains and Losses from Disposal of Non-current Assets | 838,125.78 | | Government Subsidies Included in Current Profit and Loss | 7,130,953.47 | | Other Non-operating Income and Expenses Apart from the Above | 461,728.88 | | Less: Income Tax Impact | 2,059,052.43 | | Impact on Minority Shareholders' Equity (After Tax) | 184,622.38 | | Total | 6,187,133.32 | Part III Management Discussion and Analysis I. Explanation of the Company's Industry and Main Business During the Reporting Period The company primarily provides highly integrated comprehensive port services, handling cargo types such as coal, metal ore, oil and liquid chemicals, containers, and general cargo. Its operating model encompasses material procurement, production operations, and diversified marketing strategies to meet customer needs and expand market reach - The company provides loading and unloading, stacking, warehousing, transportation, and logistics services, with main cargo types including coal, metal ore, oil and liquid chemicals, containers, and general cargo[27] - The procurement model primarily focuses on materials, loading and unloading, and transportation equipment, with energy procurement accounting for the vast majority of total procurement[27][28] - The marketing model is independent, signing long-term operating contracts with major clients through industry conferences, client visits, a grid-based marketing system, and "one-stop" services[28][29] II. Industry Economic Overview for H1 2025 In the first half of 2025, China's economy maintained growth, with national GDP increasing by 5.3% year-on-year. Port operations generally improved, with both cargo throughput and container throughput achieving growth, while coal and crude oil throughput decreased, and iron ore throughput increased - In the first half of 2025, the national GDP increased by 5.3% year-on-year[30] National Port Key Throughput Data for H1 2025 | Indicator | Throughput | YoY Growth | | :----- | :------- | :------- | | Cargo Throughput | 8.9 billion tons | 4.0% | | Domestic Trade Throughput | - | 5.0% | | Foreign Trade Throughput | - | 1.8% | | Container Throughput | 170 million TEUs | 6.9% | | Coal Throughput | 630 million tons | -1.8% | | Iron Ore Throughput | 900 million tons | 3.8% | | Crude Oil Throughput | 230 million tons | -3.5% | III. Discussion and Analysis of Operating Performance In the first half of 2025, the company's total cargo throughput increased by 3.08% year-on-year, reaching 208.38 million tons. Qinhuangdao Port, Caofeidian Port, and Huanghua Port all achieved throughput growth, with Huanghua Port showing the largest increase. Among the major cargo types, container services saw significant growth, and oil and liquid chemical services also achieved double-digit growth - During the reporting period, the company's total cargo throughput was 208.38 million tons, an increase of 3.08% compared to the same period in 2024[31] Throughput by Port for H1 2025 | Port Name | H1 2025 Throughput (million tons) | Percentage of Total Throughput (%) | H1 2024 Throughput (million tons) | Percentage of Total Throughput (%) | Increase/(Decrease) (million tons) | Increase/(Decrease) Percentage (%) | | :--------- | :---------------------------- | :------------------- | :---------------------------- | :------------------- | :--------------------- | :---------------------- | | Qinhuangdao Port | 89.42 | 42.91 | 89.14 | 44.09 | 0.28 | 0.31 | | Caofeidian Port | 68.04 | 32.65 | 65.38 | 32.34 | 2.66 | 4.07 | | Huanghua Port | 50.92 | 24.44 | 47.64 | 23.57 | 3.28 | 6.88 | | Total | 208.38 | 100.00 | 202.16 | 100.00 | 6.22 | 3.08 | Throughput by Cargo Type for H1 2025 | Cargo Type | H1 2025 Throughput (million tons) | Percentage of Total Throughput (%) | H1 2024 Throughput (million tons) | Percentage of Total Throughput (%) | Increase/(Decrease) (million tons) | Increase/(Decrease) Percentage (%) | | :------------- | :---------------------------- | :------------------- | :---------------------------- | :------------------- | :--------------------- | :---------------------- | | Coal | 106.46 | 51.09 | 102.44 | 50.67 | 4.02 | 3.92 | | Metal Ore | 76.43 | 36.68 | 76.05 | 37.62 | 0.38 | 0.50 | | Oil and Liquid Chemicals | 0.87 | 0.42 | 0.79 | 0.39 | 0.08 | 10.13 | | Containers | 8.73 | 4.19 | 7.23 | 3.58 | 1.50 | 20.75 | | General Cargo and Other Goods | 15.89 | 7.62 | 15.65 | 7.74 | 0.24 | 1.53 | | Total | 208.38 | 100.00 | 202.16 | 100.00 | 6.22 | 3.08 | IV. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness lies in opportunities from Hebei Province's port resource integration, its cross-port operating strategy as a leading global bulk dry cargo public terminal operator, extensive economic hinterland coverage, and a marketing strategy focused on large, high-quality clients - Hebei Province's port resource integration effectively avoids disorderly competition, achieves coordinated cargo type layout, and provides assurance for the company's quality improvement and efficiency gains[41] - The company is a leading global bulk dry cargo public terminal operator, implementing a cross-port operating strategy across Qinhuangdao, Tangshan, and Cangzhou[41] - The company's economic hinterland has a wide reach, covering the "Sanxi" coal production areas and the resource-consuming regions of East and South China, benefiting from the huge demand for iron ore from Hebei Province's steel production base[41][42] - The company's clients are primarily large coal, power, and steel enterprises, enhancing service quality and customer satisfaction through grid-based marketing and a "client manager responsibility system"[42] V. Key Operating Performance During the Reporting Period In the first half of 2025, the company's operating revenue and net profit slightly decreased, but financial expenses significantly reduced due to cost-cutting, reduced loan scale, and lower interest rates. R&D investment increased, the asset-liability structure remained stable, and external equity investments and major controlled and associated companies operated well Key Financial Statement Item Changes for H1 2025 | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change Ratio (%) | | :----- | :------------ | :-------------- | :----------- | | Operating Revenue | 3,451,139,185.64 | 3,461,594,202.34 | -0.30 | | Operating Cost | 2,011,867,608.81 | 2,069,285,986.70 | -2.77 | | Administrative Expenses | 328,913,881.76 | 323,910,765.75 | 1.54 | | Financial Expenses | 11,020,953.18 | 34,885,182.45 | -68.41 | | R&D Expenses | 55,586,981.20 | 43,204,191.74 | 28.66 | | Net Cash Flow from Operating Activities | 1,013,499,405.65 | 1,481,449,302.79 | -31.59 | | Net Cash Flow from Investing Activities | -242,040,484.27 | -369,336,395.03 | 34.47 | | Net Cash Flow from Financing Activities | -502,029,869.51 | -269,112,569.03 | -86.55 | - Operating revenue decreased by 0.30% year-on-year, primarily due to a decline in metal ore revenue and the disposal of the shipping branch company[43] - Financial expenses decreased by 68.41% year-on-year, mainly benefiting from reduced loan scale and interest rates[44] - R&D expenses increased by 28.66% year-on-year, indicating increased R&D investment by the company[44] - Net cash flow from operating activities decreased by 31.59% year-on-year, primarily due to a reduction in advance receipts for port fees[44] Key Changes in Assets and Liabilities for H1 2025 | Item Name | Current Period-end Amount (RMB) | Prior Year-end Amount (RMB) | Change Ratio from Prior Year-end (%) | | :--------- | :---------------- | :---------------- | :----------------------------------- | | Cash and Cash Equivalents | 5,656,749,410.96 | 4,280,764,065.06 | 32.14 | | Accounts Receivable | 273,648,886.12 | 91,240,275.48 | 199.92 | | Receivables Financing | 101,165,192.33 | 56,275,477.79 | 79.77 | | Other Receivables | 47,654,650.60 | 167,937,083.02 | -71.62 | | Right-of-use Assets | 133,555,426.59 | 98,640,235.88 | 35.40 | | Long-term Deferred Expenses | 130,223,488.87 | 13,673,877.88 | 852.35 | | Other Non-current Assets | 473,053,375.01 | 1,429,562,960.64 | -66.91 | | Taxes Payable | 37,487,730.33 | 22,480,015.81 | 66.76 | | Other Payables | 1,072,847,269.79 | 500,949,300.07 | 114.16 | | Deferred Income Tax Liabilities | 30,268,152.82 | 15,524,033.17 | 94.98 | - The period-end balance of external equity investments was RMB 3,991.5929 million, an increase of 5.11% from the beginning of the period[49] Net Profit of Major Controlled and Associated Companies | Company Name | Net Profit (RMB) | | :------------- | :---------- | | Cangzhou Ore Port Services | 255,164,617.44 | | Caofeidian Coal Port Services | 106,795,790.10 | | Caofeidian Industrial Port Services | 497,911,761.69 | VI. Outlook for H2 2025 The company expects to closely monitor market changes, leverage national economic policies, and continuously improve port service levels in the second half of 2025, striving for stable full-year performance growth. Specific measures include flexibly adjusting coal production pace, strengthening client relationships and cargo source development for metal ore, and consolidating and expanding general cargo business - The company will closely monitor market changes, fully utilize national economic policies, and continuously improve port service levels, striving for stable full-year performance growth[55] - Coal business will flexibly adjust production pace, pay attention to industry policies, develop new cargo sources, and continue to conduct visiting marketing[55] - Metal ore business will strengthen client relationships, leverage water-to-water transshipment policies, develop cargo sources from steel enterprises in southern Hebei, and adjust commercial policies to ensure stable bauxite supply[55] - General cargo and other goods business will consolidate imported grain, enhance "North-to-South Grain Transportation," optimize loading and unloading operations, and improve efficiency[55] VII. Other Disclosure Matters The company faces risks such as macroeconomic conditions, energy structure transformation, and market competition, but gross profit margin and net profit margin have improved. During the reporting period, the company's other income significantly increased, income tax expenses and effective tax rate decreased, working capital management indicators were within a reasonable range, and the asset-liability ratio decreased - The company faces uncertainties and risks such as new energy power generation encroaching on thermal power market share, market competition, macroeconomic conditions, and national policies[56] Key Financial Indicator Changes for H1 2025 | Indicator | Current Period Value | YoY Change | | :------------- | :------- | :------- | | Gross Profit Margin | 41.70% | Increase by 1.48 percentage points | | Other Income | 14.1774 million RMB | Increase by 76.11% | | Income Tax Expense | 164.2986 million RMB | Decrease by 41.0273 million RMB | | Effective Income Tax Rate | 13.54% | Decrease by 3.06 percentage points | | Net Profit | 1.0493142 billion RMB | Increase by 1.71% | | Net Profit Attributable to Parent Company | 987.8282 million RMB | Decrease by 2.22% | | Net Profit Margin | 30.40% | Increase by 0.60 percentage points | | Current Ratio | 1.92 | Increased compared to prior period | | Quick Ratio | 1.82 | Increased compared to prior period | | Asset-Liability Ratio | 26.64% | Decrease by 0.65 percentage points | Part IV Corporate Governance, Environment, and Society I. Changes in Directors and Senior Management During the reporting period, the company's Board of Directors and senior management underwent re-election and appointment, and the Supervisory Board was abolished. Zhang Xiaoqiang was elected Chairman, Nie Yuzhong served as Vice Chairman and President, and new Vice Presidents, Chief Financial Officer, and Board Secretary were appointed - On June 27, 2025, the company abolished the Supervisory Board, and the supervisors of the fifth Supervisory Board completed their terms and left office[72] - Zhang Xiaoqiang, Nie Yuzhong, and Gao Feng were elected Executive Directors of the Sixth Board of Directors; Zhang Nan, Liu Simang, Xiao Xiang, and Liu Wenpeng were elected Non-executive Directors; Zhao Jinguang, Zhu Qingxiang, Liu Li, and Zhou Qing were elected Independent Non-executive Directors[73] - Li Yufeng was elected Employee Director of the company's Sixth Board of Directors[73] - Zhang Xiaoqiang was elected Chairman, Nie Yuzhong as Vice Chairman and President; Sun Jinggang, Mao Dewei, and Li Sanglong were appointed Vice Presidents; Bu Zhouqing was appointed Chief Financial Officer; Gao Feng was appointed Board Secretary[73] II. Profit Distribution or Capital Reserve Conversion Plan The company's profit distribution plan or capital reserve conversion to share capital plan is not applicable for this reporting period - The proposed semi-annual profit distribution plan and capital reserve conversion to share capital plan are negative[75] III. Status and Impact of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures - The company has no equity incentive plans, employee stock ownership plans, or other employee incentive measures[75] IV. Audit Committee The company's Audit Committee has reviewed the unaudited interim financial report for the six months ended June 30, 2025 - The Audit Committee has reviewed the company's unaudited interim financial report for the six months ended June 30, 2025[75] V. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law Qinhuangdao Port Co., Ltd. has been included in the list of enterprises required to disclose environmental information by law, and a query index for the environmental information disclosure report is provided - Qinhuangdao Port Co., Ltd. has been included in the list of enterprises required to disclose environmental information by law[76] - The query index for the environmental information disclosure report is http://121.29.48.71:8080//fill/yearR[76](index=76&type=chunk) VI. Specific Progress in Consolidating and Expanding Poverty Alleviation Achievements and Rural Revitalization In the first half of 2025, the company actively promoted the consolidation of poverty alleviation achievements and rural revitalization, including visiting monitoring households, publicizing assistance policies, and using consumption assistance funds to repair and reinforce field embankments, ensuring villagers' travel safety and enhancing flood control capabilities - The company solidly advanced dynamic monitoring to prevent a return to poverty and improved livelihood security, visiting monitoring households, registered impoverished households, and key groups, and publicizing assistance policies[76] - The village-based working team closely collaborated with Shimenzi Village to carry out embankment reinforcement projects, using RMB 5,000 in consumption assistance funds to repair and reinforce 500 meters of field embankments[76] VII. Employee Information As of June 30, 2025, the total number of employees of the company and its subsidiaries was 8,426. The company has established a scientific and efficient compensation and performance appraisal system and an employee education and training management mechanism, continuously enhancing employee skills - As of June 30, 2025, the number of employees of the company and its subsidiaries was 8,426[77] - The company has established a scientific and efficient compensation and performance appraisal system, implementing a wage-benefit linkage mechanism[77] - The company has established and improved an employee education and training management mechanism, organizing certification-based qualification training, safety training, and job knowledge and skill training[77] Part V Significant Matters I. Fulfillment of Commitments During the reporting period, the company's controlling shareholder Hebei Port Group, the company, and its directors, supervisors, and senior management strictly fulfilled all commitments related to the initial public offering, including avoiding horizontal competition, information disclosure responsibilities, resolving property title defects, and restrictive measures for unfulfilled commitments; all commitments remain long-term effective and have been timely and strictly fulfilled - Hebei Port Group committed to avoiding horizontal competition and providing a right of first refusal; this commitment is long-term effective and has been timely and strictly fulfilled[79] - Qinhuangdao Port, Hebei Port Group, and its directors, supervisors, and senior management committed to information disclosure responsibilities, such as repurchasing shares or compensating investors for losses in case of false statements in the prospectus; this commitment is long-term effective and has been timely and strictly fulfilled[79][80][81][82] - Hebei Port Group committed to resolving property title defects for houses and other assets; this commitment is long-term effective and has been timely and strictly fulfilled[80][81] II. Non-operating Fund Occupation by Controlling Shareholders and Other Related Parties During the Reporting Period During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the company - During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the company[7] III. Irregular Guarantees During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures - During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures[8] IV. Semi-Annual Report Audit Status This semi-annual report is unaudited - This semi-annual report is unaudited[5] V. Changes and Handling of Matters Related to Non-Standard Audit Opinions in the Prior Year's Annual Report The company's situation regarding changes and handling of matters related to non-standard audit opinions in the prior year's annual report is not applicable for this reporting period - The company's situation regarding changes and handling of matters related to non-standard audit opinions in the prior year's annual report is not applicable[84] VI. Bankruptcy Reorganization Matters The company had no bankruptcy reorganization matters during this reporting period - The company had no bankruptcy reorganization matters during this reporting period[84] VII. Significant Litigation and Arbitration Matters The company had no significant litigation or arbitration matters during this reporting period - The company had no significant litigation or arbitration matters during this reporting period[84] VIII. Alleged Violations, Penalties, and Rectification by the Listed Company, Its Directors, Supervisors, Senior Management, Controlling Shareholders, and Actual Controllers The company's situation regarding alleged violations, penalties, and rectification by the listed company, its directors, supervisors, senior management, controlling shareholders, and actual controllers is not applicable for this reporting period - The company's situation regarding alleged violations, penalties, and rectification by the listed company, its directors, supervisors, senior management, controlling shareholders, and actual controllers is not applicable[84] IX. Explanation of the Integrity Status of the Company, Its Controlling Shareholders, and Actual Controllers During the Reporting Period During the reporting period, the company, its controlling shareholders, and actual controllers had no unfulfilled effective court judgments or large overdue debts, indicating a good integrity status - During the reporting period, Qinhuangdao Port and its controlling shareholders and actual controllers had no unfulfilled effective court judgments or large overdue debts[84] X. Significant Related Party Transactions The company signed multiple daily related party transaction agreements with its controlling shareholder Hebei Port Group and its finance company, covering leasing, comprehensive services, and financial services, ensuring operational stability and financial flexibility. All transactions adhered to market principles and were within approved limits - The company signed a "Leasing Framework Agreement" with Hebei Port Group, valid from January 1, 2025, to December 31, 2027, with an annual rent cap of RMB 162.4758 million[85] - In the first half of 2025, the company incurred RMB 58.1235 million in rent under the "Leasing Framework Agreement"[86] - The company signed a "Comprehensive Service Agreement" with Hebei Port Group, with the same validity period. The maximum annual service amount provided by the company to Hebei Port Group is RMB 200 million, and the maximum annual service amount provided by Hebei Port Group to the company is RMB 1,833.71 million[87][89][90] - In the first half of 2025, the company provided RMB 35.0343 million in services to Hebei Port Group and received RMB 413.3802 million in services[90] - The company signed a "Financial Services Framework Agreement" with Hebei Port Finance Company, with the same validity period. The maximum daily balance for deposits and interest income is RMB 6.5 billion per year, and the maximum daily balance for loans and interest expenses is RMB 2.5 billion per year[91] - As of June 30, 2025, the company's maximum deposit balance with Hebei Port Finance Company was RMB 5.295 billion, and the maximum loan amount extended was RMB 1.397 billion[93] Financial Business with Hebei Port Finance Company | Business Type | Related Party Relationship | Maximum Daily Limit (RMB) | Deposit Interest Rate Range | Period-end Balance (RMB) | Total Deposits in Current Period (RMB) | Total Withdrawals in Current Period (RMB) | | :------- | :------- | :---------------- | :----------- | :------------ | :-------------------- | :-------------------- | | Deposit Business | Controlling Subsidiary of Parent Company | 6,500,000,000.00 | 0.15%-3.27% | 5,318,058,790.95 | 7,592,764,788.40 | 7,064,537,889.24 | | Loan Business | Controlling Subsidiary of Parent Company | 2,500,000,000.00 | 2.27%-2.85% | 1,088,850,000.00 | 307,950,000.00 | 1,088,850,000.00 | XI. Significant Contracts and Their Performance The company had no entrustment, contracting, or leasing matters, nor any significant guarantees during this reporting period - The company had no entrustment, contracting, or leasing matters during this reporting period[95] - The company had no significant guarantees during this reporting period[95] XII. Explanation of Progress in A-Share Raised Funds Utilization The company's explanation of progress in A-share raised funds utilization is not applicable for this reporting period - The company's explanation of progress in A-share raised funds utilization is not applicable[96] XIII. Explanation of Other Significant Matters The company had no other significant matters to explain during this reporting period - The company had no other significant matters to explain[96] XIV. Compliance with Hong Kong Listing Rules and Corporate Governance Code During the reporting period, the company complied with the code provisions of the Hong Kong Listing Rules and the Corporate Governance Code, with no deviations - During the reporting period, the company complied with the code provisions of the Hong Kong Listing Rules and the Corporate Governance Code, with no deviations[96] XV. Compliance with the Model Code During the reporting period, the company adopted the Model Code to regulate securities transactions by directors and supervisors, and all directors and supervisors confirmed compliance with relevant provisions - During the reporting period, Qinhuangdao Port adopted the Model Code as the code of conduct for securities transactions by its directors and supervisors[97] - All directors and supervisors confirmed that they had complied with the provisions of the Model Code during the relevant period[97] XVI. Utilization of H-Share Raised Funds The net proceeds from the company's H-share offering were HKD 3,823 million, with unused proceeds reallocated to working capital and general corporate purposes. As of June 30, 2025, cumulative H-share proceeds utilized amounted to HKD 3,851.8586 million, with a remaining HKD 7.4315 million designated for working capital and general corporate purposes over the next five years - The net proceeds from Qinhuangdao Port's H-share offering were HKD 3,823 million[98] - The company's Board of Directors has approved the reallocation of unused H-share proceeds to working capital and general corporate purposes[98] - As of June 30, 2025, the company had cumulatively utilized HKD 3,851.8586 million of H-share proceeds, with HKD 7.4315 million remaining unused[99] - The unused H-share proceeds are expected to be used for the company's working capital and general corporate purposes over the next five years[99] Part VI Share Changes and Shareholder Information I. Changes in Share Capital During the reporting period, there were no changes in the company's total share capital or share capital structure - During the reporting period, there were no changes in the company's total share capital or share capital structure[101] II. Shareholder Information As of the end of the reporting period, the company's top ten shareholders maintained stable holdings, with controlling shareholder Hebei Port Group Co., Ltd. holding 58.27% and HKSCC Nominees Limited being the second largest shareholder Top Ten Shareholders' Holdings as of the End of the Reporting Period | Shareholder Name (Full Name) | Period-end Shareholding (shares) | Percentage (%) | Shareholder Nature | | :---------------- | :------------------ | :------- | :------- | | Hebei Port Group Co., Ltd. | 3,256,008,078 | 58.27 | State-owned Legal Person | | HKSCC Nominees Limited | 828,540,723 | 14.83 | Overseas Legal Person | | Qinhuangdao Municipal People's Government State-owned Assets Supervision and Administration Commission | 397,975,485 | 7.12 | State | | Hebei Construction Investment Transportation Investment Co., Ltd. | 209,866,757 | 3.76 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited (Shanghai-Hong Kong Stock Connect) | 45,856,515 | 0.82 | Overseas Legal Person | | DaQin Railway Co., Ltd. | 42,750,000 | 0.77 | State-owned Legal Person | | COSCO SHIPPING (Tianjin) Co., Ltd. | 41,437,588 | 0.74 | State-owned Legal Person | | Jinneng Holding Coal Industry Group Co., Ltd. | 41,437,588 | 0.74 | State-owned Legal Person | | Shanxi Provincial People's Government Qinhuangdao Port Administration Office | 30,538,764 | 0.55 | Other | | Great Wall Life Insurance Co., Ltd. - Proprietary Funds | 21,400,000 | 0.38 | Other | III. Interests and Short Positions of Major Shareholders and Other Persons in Qinhuangdao Port's Shares As of June 30, 2025, Hebei Provincial People's Government State-owned Assets Supervision and Administration Commission and Hebei Port Group Co., Ltd. were major shareholders, each holding 58.27% of the company's A-share interests. Great Wall Life Insurance Co., Ltd. held 4.62% of the H-share interests Interests of Major Shareholders and Other Persons in the Company's Shares | Shareholder Name | Number of Shares Held (shares) | Share Class | Approximate Percentage of Qinhuangdao Port's Total Issued Share Capital (%) | Long/Short Position | | :--------- | :-------------------- | :------- | :--------------------------------------- | :-------- | | Hebei Provincial People's Government State-owned Assets Supervision and Administration Commission | 3,256,008,078 | A-share | 58.27 | Long Position | | Hebei Port Group Co., Ltd. | 3,256,008,078 | A-share | 58.27 | Long Position | | Hebei Port Group Co., Ltd. | 71,303,000 | H-share | 1.28 | Long Position | | Great Wall Life Insurance Co., Ltd. | 258,000,000 | H-share | 4.62 | Long Position | IV. Purchase, Sale, or Repurchase of Qinhuangdao Port Listed Shares During the reporting period, the company neither purchased, sold, nor repurchased any listed shares of Qinhuangdao Port, and held no treasury shares at period-end - During this reporting period, the company neither purchased, sold, nor repurchased any listed shares of Qinhuangdao Port[110] - As of June 30, 2025, the company held no treasury shares[110] V. Directors and Senior Management Information As of June 30, 2025, none of the company's directors, chief executives, or their respective associates held any interests or short positions in shares, underlying shares, or debentures requiring disclosure under the Securities and Futures Ordinance - As of June 30, 2025, none of Qinhuangdao Port's directors, chief executives, or their respective associates owned or were deemed to own any disclosable interests or short positions in the shares, underlying shares, or debentures of Qinhuangdao Port or any of its associated corporations[111] VI. Changes in Controlling Shareholder or Actual Controller The company had no changes in its controlling shareholder or actual controller during this reporting period - The company had no changes in its controlling shareholder or actual controller during this reporting period[113] VII. Preferred Share Information The company had no preferred share-related information during this reporting period - The company had no preferred share-related information during this reporting period[113] Part VII Bond-Related Information I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments The company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during this reporting period - The company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during this reporting period[114] II. Convertible Corporate Bonds The company had no convertible corporate bonds during this reporting period - The company had no convertible corporate bonds during this reporting period[114] Part VIII Financial Report I. Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[115] II. Financial Statements This section presents Qinhuangdao Port Co., Ltd.'s consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively reflecting the financial position and operating results of the company and its subsidiaries Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were RMB 28.499 billion, an increase of 2.22% from the beginning of the period; consolidated total liabilities were RMB 7.592 billion, a slight decrease from the beginning of the period. Cash and cash equivalents and accounts receivable significantly increased, while other non-current assets decreased Key Data from Consolidated Balance Sheet | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :----- | :------------------- | :------------------- | | Cash and Cash Equivalents | 5,656,749,410.96 | 4,280,764,065.06 | | Accounts Receivable | 273,648,886.12 | 91,240,275.48 | | Total Assets | 28,499,425,170.55 | 27,880,013,639.48 | | Short-term Borrowings | 360,147,777.78 | 300,094,583.33 | | Total Liabilities | 7,591,730,128.79 | 7,608,797,848.52 | | Total Equity Attributable to Owners of the Parent Company | 19,904,278,149.56 | 19,329,265,694.28 | Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were RMB 20.801 billion, an increase of 3.80% from the beginning of the period; total liabilities were RMB 2.142 billion, an increase of 30.09% from the beginning of the period. Cash and cash equivalents and accounts receivable significantly increased, while other receivables decreased Key Data from Parent Company Balance Sheet | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :----- | :------------------- | :------------------- | | Cash and Cash Equivalents | 4,641,485,846.12 | 3,384,222,871.76 | | Accounts Receivable | 164,741,883.04 | 19,716,899.85 | | Total Assets | 20,800,808,547.01 | 20,038,766,415.35 | | Total Liabilities | 2,141,831,105.36 | 1,649,450,678.20 | | Total Owners' Equity | 18,658,977,441.65 | 18,389,315,737.15 | Consolidated Income Statement In the first half of 2025, the company's consolidated operating revenue was RMB 3.451 billion, a slight decrease of 0.30% year-on-year; net profit was RMB 1.049 billion, an increase of 1.71% year-on-year. Net profit attributable to shareholders of the parent company was RMB 988 million, a decrease of 2.22% year-on-year Key Data from Consolidated Income Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :----- | :------------------ | :------------------ | | Total Operating Revenue | 3,451,139,185.64 | 3,461,594,202.34 | | Total Operating Cost | 2,473,610,959.54 | 2,538,985,641.71 | | Total Profit | 1,213,612,733.55 | 1,237,012,567.93 | | Net Profit | 1,049,314,162.17 | 1,031,686,664.16 | | Net Profit Attributable to Shareholders of the Parent Company | 987,828,180.50 | 1,010,289,679.26 | | Total Comprehensive Income | 1,093,698,404.32 | 973,195,367.94 | | Basic Earnings Per Share (RMB/share) | 0.18 | 0.18 | Parent Company Income Statement In the first half of 2025, the parent company's operating revenue was RMB 1.930 billion, a decrease of 4.10% year-on-year; net profit was RMB 686 million, a decrease of 7.43% year-on-year. Total comprehensive income was RMB 734 million, an increase of 6.90% year-on-year Key Data from Parent Company Income Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :----- | :------------------ | :------------------ | | Operating Revenue | 1,929,568,914.36 | 2,011,954,548.13 | | Operating Profit | 823,748,658.91 | 911,449,361.52 | | Total Profit | 824,647,761.97 | 914,521,354.04 | | Net Profit | 685,904,728.37 | 740,947,334.51 | | Total Comprehensive Income | 733,993,855.86 | 685,733,280.64 | Consolidated Cash Flow Statement In the first half of 2025, the company's net cash flow from operating activities was RMB 1.013 billion, a year-on-year decrease of 31.59%. Net cash flow from investing activities was RMB -242 million, net cash flow from financing activities was RMB -502 million, and the net increase in cash and cash equivalents was RMB 269 million Key Data from Consolidated Cash Flow Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :----- | :------------------ | :------------------ | | Net Cash Flow from Operating Activities | 1,013,499,405.65 | 1,481,449,302.79 | | Net Cash Flow from Investing Activities | -242,040,484.27 | -369,336,395.03 | | Net Cash Flow from Financing Activities | -502,029,869.51 | -269,112,569.03 | | Net Increase in Cash and Cash Equivalents | 268,540,683.25 | 843,376,005.96 | | Period-end Balance of Cash and Cash Equivalents | 2,015,866,890.58 | 2,532,643,862.22 | Parent Company Cash Flow Statement In the first half of 2025, the parent company's net cash flow from operating activities was RMB 354 million, a year-on-year decrease of 43.99%. Net cash flow from investing activities was RMB -92 million, net cash flow from financing activities was RMB -8 million, and the net increase in cash and cash equivalents was RMB 253 million Key Data from Parent Company Cash Flow Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :----- | :------------------ | :------------------ | | Net Cash Flow from Operating Activities | 353,735,133.56 | 631,675,724.45 | | Net Cash Flow from Investing Activities | -92,260,668.54 | -139,313,534.72 | | Net Cash Flow from Financing Activities | -7,870,226.46 | -9,002,019.63 | | Net Increase in Cash and Cash Equivalents | 252,715,869.94 | 483,426,373.90 | | Period-end Balance of Cash and Cash Equivalents | 1,227,836,401.69 | 1,277,017,801.54 | Consolidated Statement of Changes in Owners' Equity In the first half of 2025, the company's consolidated total owners' equity was RMB 20.908 billion, an increase of 3.14% from the beginning of the period. Total equity attributable to owners of the parent company was RMB 19.904 billion, an increase of 2.97% from the beginning of the period Key Data from Consolidated Statement of Changes in Owners' Equity | Item | Beginning Balance 2025 (RMB) | Ending Balance 2025 (RMB) | | :----- | :-------------------- | :-------------------- | | Paid-in Capital (or Share Capital) | 5,587,412,000.00 | 5,587,412,000.00 | | Capital Reserve | 5,240,054,962.23 | 5,240,141,904.03 | | Other Comprehensive Income | 478,763,351.17 | 524,962,987.14 | | Special Reserve | 59,619,879.38 | 75,447,596.39 | | Surplus Reserve | 1,870,675,590.72 | 1,870,675,590.72 | | Retained Earnings | 6,092,739,910.78 | 6,605,638,071.28 | | Total Equity Attributable to Owners of the Parent Company | 19,329,265,694.28 | 19,904,278,149.56 | | Minority Interests | 941,950,096.68 | 1,003,416,892.20 | | Total Owners' Equity | 20,271,215,790.96 | 20,907,695,041.76 | Parent Company Statement of Changes in Owners' Equity In the first half of 2025, the parent company's total owners' equity was RMB 18.659 billion, an increase of 1.47% from the beginning of the period Key Data from Parent Company Statement of Changes in Owners' Equity | Item | Beginning Balance 2025 (RMB) | Ending Balance 2025 (RMB) | | :----- | :-------------------- | :-------------------- | | Paid-in Capital (or Share Capital) | 5,587,412,000.00 | 5,587,412,000.00 | | Capital Reserve | 5,229,526,919.59 | 5,229,501,819.99 | | Other Comprehensive Income | 484,746,235.93 | 532,835,363.42 | | Special Reserve | 31,588,261.20 | 42,211,229.44 | | Surplus Reserve | 1,870,537,245.95 | 1,870,537,245.95 | | Retained Earnings | 5,185,505,074.48 | 5,396,479,782.85 | | Total Owners' Equity | 18,389,315,737.15 | 18,658,977,441.65 | III. Company Basic Information Qinhuangdao Port Co., Ltd. was established on March 31, 2008, with its H-shares and A-shares listed in 2013 and 2017, respectively. The company primarily provides comprehensive port operation services, handling cargo types such as coal, ore, oil, containers, and general cargo, and its controlling shareholder is Hebei Port Group Co., Ltd. - Qinhuangdao Port Co., Ltd. was established on March 31, 2008, with its H-shares listed on December 12, 2013, and A-shares listed on August 16, 2017[148] - The company primarily operates port services, with cargo types including coal, ore, oil and liquid chemicals, containers, and general cargo[148] - The parent company and ultimate parent company of the Group is Hebei Port Group Co., Ltd.[148] IV. Basis of Financial Statement Preparation The company's financial statements comply with enterprise accounting standards and relevant regulations, also considering disclosure requirements of the Hong Kong Listing Rules. The statements are prepared on a going concern basis, using the accrual basis and historical cost as the accounting basis, with some financial instruments measured at fair value - The Group implements enterprise accounting standards and relevant regulations issued by the Ministry of Finance, and discloses financial information in accordance with "Reporting Rules for Information Disclosure by Companies Issuing Public Securities No. 15—General Provisions for Financial Reports (Revised 2023)"[150] - These financial statements are prepared on a going concern basis, and no matters or circumstances have been identified that cast significant doubt on the ability to continue as a going concern[151] - The Group's accounting is based on the accrual basis, and these financial statements are measured at historical cost, except for certain financial instruments measured at fair value[152] V. Significant Accounting Policies and Estimates This section elaborates on the significant accounting policies and estimates followed by the company in preparing its financial statements, covering business combinations, financial instruments, inventories, long-term equity investments, fixed assets, intangible assets, employee benefits, revenue recognition, government grants, deferred income tax, and other aspects, also explaining key assumptions and uncertainties used in accounting estimates - The financial statements prepared by the company comply with the requirements of enterprise accounting standards and truly and completely reflect the company's financial position and operating results[154] - The company subsequently measures financial assets at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[178] - Fixed assets are depreciated using the straight-line method, with depreciation periods ranging from 6 to 35 years for various types of fixed assets, and a residual value rate of 3%[213][214] - Revenue is recognized based on the fulfillment of performance obligations, i.e., when the customer obtains control of the related goods or services, revenue is recognized at the transaction price allocated to that performance obligation[233] - Key assumptions and uncertainties in accounting estimates include impairment of non-current assets, fair value of unlisted equity investments, deferred income tax assets, and the useful lives and residual values of fixed assets[256][257][258][259] VI. Taxation The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, property tax, land use tax, and environmental protection tax. The company and some subsidiaries enjoy multiple tax incentives, including a 50% reduction in land use tax, VAT levied at a reduced rate of 1%, and corporate income tax "three-year exemption and three-year half reduction" and small low-profit enterprise benefits Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :------------- | :----------------------------------------- | :------- | | Value-Added Tax (VAT) | Difference between output tax calculated on sales and applicable tax rate, and deductible input tax | 13%、6% | | Urban Maintenance and Construction Tax | Actually paid VAT | 7% | | Corporate Income Tax | Taxable income | 25% | | Property Tax | 70% of original property value and rental income | 1.2%、12% | | Land Use Tax | Actual occupied land area | Unit tax amount stipulated by tax law | | Environmental Protection Tax | Discharge volume and pollution equivalent of taxable pollutants | According to applicable tax rates under Environmental Protection Tax Law | - Urban land use tax for land used by logistics enterprises for bulk commodity warehousing facilities is halved until December 31, 2027[262] - VAT for some subsidiaries is levied at a reduced rate of 1% until December 31, 2027[263][264] - Cangzhou Ore Port Services' Huanghua Port Bulk Cargo Terminal Phase I (Continued Construction) project enjoys a corporate income tax "three-year exemption and three-year half reduction" incentive, starting from 2023[265] - For small low-profit enterprises, the portion of annual taxable income not exceeding RMB 3 million is included in taxable income at 25% and subject to corporate income tax at a rate of 20%[265] VII. Notes to Consolidated Financial Statement Items This section details the period-end balances, beginning balances, and current period changes for each item in the consolidated financial statements, with explanations for items with significant changes. Key changes include significant increases in cash and cash equivalents, accounts receivable, long-term deferred expenses, other payables, and deferred income tax liabilities, as well as significant decreases in other receivables and other non-current assets Period-end Balances and Changes of Key Consolidated Financial Statement Items | Item Name | Period-end Balance (RMB) | Beginning Balance (RMB) | Change Ratio (%) | | :--------- | :-------------- | :-------------- | :----------- | | Cash and Cash Equivalents | 5,656,749,410.96 | 4,280,764,065.06 | 32.14 | | Accounts Receivable | 273,648,886.12 | 91,240,275.48 | 199.92 | | Receivables Financing | 101,165,192.33 | 56,275,477.79 | 79.77 | | Other Receivables | 47,654,650.60 | 167,937,083.02 | -71.62 | | Long-term Deferred Expenses | 130,223,488.87 | 13,673,877.88 | 852.35 | | Other Non-current Assets | 473,053,375.01 | 1,429,562,960.64 | -66.91 | | Taxes Payable | 37,487,730.33 | 22,480,015.81 | 66.76 | | Other Payables | 1,072,847,269.79 | 500,949,300.07 | 114.16 | | Deferred Income Tax Liabilities | 30,268,152.82 | 15,524,033.17 | 94.98 | - The increase in cash and cash equivalents was mainly due to term deposits reclassified to other non-current assets maturing within one year in the current period and increased net operating cash inflow[47] - The increase in accounts receivable was primarily due to the company's intensified marketing efforts to clients and China Coal Energy Company's change in settlement method to collection in the month following the quarter[47] - The significant increase in long-term deferred expenses was mainly due to increased dredging costs at Cangzhou Ore Port Services[47] - The significant increase in other payables was mainly due to increased dividend provisions by the parent company[48] VIII. R&D Expenses In the first half of 2025, the company's R&D expenses were RMB 55.587 million, a year-on-year increase of 28.66%, primarily consisting of outsourced R&D expenditures and personnel costs. There were no R&D projects meeting capitalization criteria during the reporting period Composition of R&D Expenses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :------------- | :---------------- | :---------------- | | Outsourced R&D Expenditures | 24,084,371.90 | 6,742,684.33 | | Personnel Costs | 27,291,107.52 | 32,172,370.12 | | Direct Input | 2,506,309.43 | 4,032,568.88 | | Depreciation and Amortization | 1,394,053.75 | 124,182.82 | | Other | 311,138.60 | 132,385.59 | | Total | 55,586,981.20 | 43,204,191.74 | | Expensed R&D Expenditures | 55,586,981.20 | 43,204,191.74 | - The Group had no R&D project development expenditures that met capitalization criteria[440] IX. Changes in Consolidation Scope During the reporting period, there were no business combinations involving entities not under common control, business combinations involving entities under common control, reverse acquisitions, or loss of control over subsidiaries within the company's consolidation scope; only subsidiary deregistrations occurred - There were no transactions or events involving the loss of control over subsidiaries in the current period[442] - There were no business combinations involving entities not under common control, business combinations involving entities under common control, or reverse acquisitions in the current period[441][442] X. Interests in Other Entities The company owns multiple subsidiaries, with Caofeidian Coal Port Services being a significant non-wholly owned subsidiary. Additionally, the company holds interests in associates such as Hebei Port Finance Co., Ltd. and Caofeidian Industrial Port Services, which significantly impact the company's financial position and operating results Composition of Major Subsidiaries | Subsidiary Name | Registered Capital (ten thousand RMB) | Shareholding Percentage (%) (Direct) | Acquisition Method | | :----------- | :---------------- | :------------------- | :------- | | Qinhuangdao Port Xinwan Container Terminal Co., Ltd. | 40,000 | 55.00 | Equity Investment | | Caofeidian Coal Port Services | 180,000 | 51.00 | Establishment or Investment | | Cangzhou Ore Port Services | 526,635 | 97.59 | Establishment or Investment | Financial Information of Significant Non-wholly Owned Subsidiary (Caofeidian Coal Port Services) | Indicator | Minority Shareholding Percentage (%) | Profit or Loss Attributable to Minority Shareholders in Current Period (RMB) | Period-end Balance of Minority Interests (RMB) | | :----- | :------------------- | :---------------------------- | :-------------------------- | | Caofeidian Coal Port Services | 49.00 | 52,329,937.15 | 660,291,555.01 | Financial Information of Significant Associates | Associate Name | Shareholding Percentage (%) (Direct) | H1 2025 Net Profit (RMB) | H1 2025 Total Comprehensive Income (RMB) | | :------------- | :------------------- | :------------------------ | :-------------------------- | | Caofeidian Industrial Port Services | 35.00 | 497,911,761.69 | 542,448,662.30 | | Hebei Port Finance Co., Ltd. | 40.00 | 21,631,489.87 | 21,631,489.87 | XI. Government Grants The company received multiple government grants during the reporting period, primarily related to environmental protection special funds, technical center project expenses, and intelligent yard renovation, with government grants recognized in current profit or loss totaling RMB 13.7291 million Liability Items Involving Government Grants | Financial Statement Item | Beginning Balance (RMB) | New Grant Amount in Current Period (RMB) | Included in Other Income in Current Period (RMB) | Ending Balance (RMB) | Asset/Income Related | | :------------- | :-------------- | :-------------------- | :-------------------- | :-------------- | :-------------- | | Environmental Protection Special Fund Subsidy | 85,447,380.46 | - | 5,278,189.26 | 80,169,191.20 | Asset-related | | Technical Center Project Expenses | 2,186,174.91 | - | 170,901.92 | 2,015,272.99 | Asset-related | | Intelligent Yard Renovation System | 3,516,684.55 | - | 557,880.54 | 2,958,804.01 | Asset-related | | Other | 1,594,958.46 | 4,193,247.09 | 3,179,826.62 | 2,608,378.93 | Asset-related | | Total | 105,280,198.38 | 4,193,247.09 | 9,861,798.34 | 99,611,647.13 | / | Government Grants Recognized in Current Profit or Loss | Type | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :------------- | :---------------- | :---------------- | | Asset-related Government Grants | 9,861,798.34 | 7,368,305.06 | | Income-related Government Grants | 3,867,311.39 | 182,641.35 | | Total | 13,729,109.73 | 7,550,946.41 | XII. Risks Related to Financial Instruments The company faces market risks (interest rate risk, exchange rate risk), credit risk, and liquidity risk. The company manages these risks by monitoring interest rate changes, conducting credit reviews, and utilizing diversified financing methods, while maintaining a healthy capital structure. The leverage ratio remains within a reasonable range - The company's exposure to market interest rate changes primarily relates to floating-rate liabilities, managed by closely monitoring interest rate changes and regularly reviewing borrowings[462] - Exchange rate risk is not significant, primarily rela