中远海控(01919) - 2025 - 中期业绩

Performance Highlights The Group announced a 7.78% increase in revenue and a 3.90% increase in profit attributable to equity holders for the first half of 2025, alongside an interim dividend declaration 2025 H1 Performance Highlights (RMB Thousand) | Indicator | 2025 | 2024 (Restated) | Difference | | :--- | :--- | :--- | :--- | | Revenue | 109,099,344 | 101,224,495 | 7,874,849 | | Profit Attributable to Equity Holders of the Company | 17,527,589 | 16,870,109 | 657,480 | | Basic Earnings Per Share (RMB) | 1.12 | 1.05 | 0.07 | - The Board is pleased to announce an interim dividend of RMB 0.56 per ordinary share (tax inclusive)[3] Unaudited Interim Condensed Consolidated Financial Information This section presents the Group's unaudited interim condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position, for the period ended June 30, 2025 Unaudited Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group's revenue increased by 7.78% to RMB 109,099,344 thousand, with significant growth in other income driving operating profit and profit attributable to equity holders 2025 H1 Consolidated Statement of Profit or Loss Key Data (RMB Thousand) | Indicator | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Revenue | 109,099,344 | 101,224,495 | | Cost of Services | (86,670,370) | (78,059,101) | | Gross Profit | 22,428,974 | 23,165,394 | | Other Income | 1,852,627 | 593,853 | | Operating Profit | 19,718,615 | 19,057,634 | | Profit Attributable to Equity Holders of the Company | 17,527,589 | 16,870,109 | | Basic Earnings Per Share (RMB) | 1.12 | 1.05 | Unaudited Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive income for the period was RMB 20,316,179 thousand, with a shift in other comprehensive income from joint ventures and associates from loss to gain, while exchange differences moved from gain to loss 2025 H1 Consolidated Statement of Comprehensive Income Key Data (RMB Thousand) | Indicator | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Profit for the Period | 20,196,169 | 19,255,613 | | Share of Other Comprehensive Income/(Loss) of Joint Ventures and Associates, Net | 135,489 | (1,520) | | Exchange Differences | (1,227) | 465,805 | | Other Comprehensive Income for the Period, Net of Tax | 120,010 | 509,455 | | Total Comprehensive Income for the Period | 20,316,179 | 19,765,068 | | Total Comprehensive Income for the Period Attributable to Equity Holders of the Company | 17,488,936 | 17,305,657 | Unaudited Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets slightly increased to RMB 498,497,058 thousand, with increases in property, plant and equipment, right-of-use assets, and investments in associates, while cash and cash equivalents decreased Consolidated Statement of Financial Position Key Data as of June 30, 2025 (RMB Thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 498,497,058 | 497,472,214 | | Total Non-current Assets | 303,132,242 | 291,355,237 | | Total Current Assets | 195,364,816 | 206,116,977 | | Total Equity | 282,893,627 | 285,058,777 | | Total Liabilities | 215,603,431 | 212,413,437 | | Net Current Assets | 69,922,644 | 83,326,274 | - Property, plant and equipment increased from RMB 151,162,582 thousand to RMB 159,871,660 thousand, and right-of-use assets increased from RMB 43,951,780 thousand to RMB 45,870,987 thousand[8] - Cash and cash equivalents decreased from RMB 184,189,078 thousand to RMB 169,142,909 thousand[8] Notes to the Unaudited Interim Condensed Consolidated Financial Information This section provides detailed notes to the unaudited interim condensed consolidated financial information, covering general information, basis of preparation, accounting policy changes, segment reporting, and other financial items 1 General Information The Company, established in China in 2005, is listed on the HKEX and SSE, primarily engaged in global container shipping and terminal management, with its interim financial information reviewed but unaudited - The company was incorporated in China on March 3, 2005, with H shares listed on the HKEX and A shares on the SSE[11] - The Group's business includes providing extensive global container shipping, container terminal management, and operation services[11] - The interim financial information was approved for publication by the Board on August 28, 2025, and has been reviewed but not audited[12][13] 2 Basis of Preparation The interim financial information is prepared in accordance with HKAS 34 and Listing Rules, on a going concern basis using historical cost, with certain financial assets and liabilities measured at fair value, and 2024 comparative data restated due to a common control business combination - The interim financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure requirements of Appendix D2 to the Listing Rules of The Stock Exchange of Hong Kong Limited[14] - The interim financial information is prepared on a going concern basis and under the historical cost convention, except for certain financial assets and liabilities (including derivative instruments) which are measured at fair value[15][16] - In the second half of 2024, a subsidiary of the Group, COSCO SHIPPING Lines (Europe) GmbH, entered into a concerted action agreement with COSCO SHIPPING Logistics (Hong Kong) Co., Limited and COSCO SHIPPING (Europe) GmbH, which is regarded as a common control business combination, and comparative data has been restated[15] 3 Changes in Accounting Policies The Group adopted HKAS 21 (Amendment) "Lack of Exchangeability" in the 2025 interim period with no significant impact, while evaluating new standards, including HKFRS 18 "Presentation and Disclosure in Financial Statements," which may affect financial statement presentation 3.1 Adoption of New and Revised Standards The Group adopted HKAS 21 (Amendment) "Lack of Exchangeability," effective January 1, 2025, during the 2025 interim period, which had no significant impact on the results or financial position for the current or prior periods - The Group adopted HKAS 21 (Amendment) "Lack of Exchangeability" during the 2025 interim period, effective for financial years beginning on or after January 1, 2025[18] - The adoption of the above amendments to existing standards had no significant impact on the results and financial position for the current and prior periods and/or the disclosures contained in these condensed consolidated financial statements[18] 3.2 New Standards and Amendments to Existing Standards and Interpretations Not Yet Effective The Group has not early adopted several new standards and amendments, including HKFRS 9, 7, and 18, with only HKFRS 18 expected to potentially impact the presentation of the consolidated financial statements - The Group has not early adopted new standards not yet effective, including HKFRS 9 and 7 (Amendments), Annual Improvements to HKFRS Accounting Standards – Volume 11, and HKFRS 18[20] - Except for the adoption of HKFRS 18, which may affect the presentation of the Group's consolidated financial statements, the adoption of the above amendments and improvements to existing standards and interpretations is not expected to have a significant impact on the Group's consolidated financial statements[20] 4 Revenue and Segment Information The Group's operating segments include container shipping, terminal, and corporate and other businesses, with container shipping contributing the majority of revenue and operating profit in H1 2025, and revenue geographically presented by trade lane for container shipping and by operating location for terminals 4.1 Operating Segments The Group's operating segments, as reported to the chief operating decision maker, include container shipping, terminal, and corporate and other businesses, with container shipping generating RMB 104,803,089 thousand in total revenue and RMB 18,716,607 thousand in segment operating profit in H1 2025, making it the primary source of revenue and profit - The Group's operating segments include container shipping business, terminal business, and corporate and other businesses, primarily comprising investment holding, management services, and financing[24] - 2025 H1 Segment Revenue and Operating Profit (RMB Thousand) | Indicator | Container Shipping Business | Terminal Business | Corporate and Other Businesses | Inter-segment Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 104,803,089 | 5,842,108 | – | (1,545,853) | 109,099,344 | | Segment Operating Profit | 18,716,607 | 981,891 | 6,020,117 | (6,000,000) | 19,718,615 | 4.2 Geographical Information The Group's revenue and non-current assets are presented geographically, with container shipping revenue derived from major global trade lanes and terminal revenue by operating location, while container vessels and containers are unallocated due to their global mobility 4.2.1 Revenue In H1 2025, external revenue from container shipping primarily originated from the Americas (RMB 28,697,465 thousand), Asia-Pacific (RMB 27,098,395 thousand), and Europe (RMB 21,025,603 thousand), while terminal business external revenue mainly came from Europe (RMB 2,121,180 thousand) and Mainland China (RMB 1,883,758 thousand) - Revenue from container shipping business is classified by trade lane, and revenue from terminal operations is presented by the geographical area where the business operates[27][28] - 2025 H1 Container Shipping Business External Revenue (RMB Thousand) | Region | External Revenue | | :--- | :--- | | Americas | 28,697,465 | | Europe | 21,025,603 | | Asia-Pacific | 27,098,395 | | Mainland China | 11,945,964 | | Other International Regions | 15,991,541 | | Total | 104,758,968 | - 2025 H1 Terminal Business External Revenue (RMB Thousand) | Region | External Revenue | | :--- | :--- | | Mainland China | 1,883,758 | | Europe | 2,121,180 | | Asia-Pacific | 201,579 | | Other International Regions | 133,859 | | Total | 4,340,376 | 4.2.2 Non-current Assets Of the Group's non-current assets, RMB 163,917,099 thousand is unallocated, primarily due to the global deployment of container vessels and containers, while Mainland China accounts for the largest portion of the remaining regional non-current assets at RMB 92,822,840 thousand - Container vessels and containers (included in property, plant and equipment and right-of-use assets) are primarily used for cargo shipping across various regions globally, thus their locations cannot be reported by region and are presented as unallocated non-current assets[32] - Non-current Assets Geographical Distribution as of June 30, 2025 (RMB Thousand) | Category | June 30, 2025 | | :--- | :--- | | Unallocated | 163,917,099 | | Remaining Assets – Mainland China | 92,822,840 | | Remaining Assets – Regions Outside Mainland China | 39,052,359 | 5 Other Income and Expenses In H1 2025, the Group's other income significantly increased by 211.97% to RMB 1,852,627 thousand, driven by higher dividend income from financial assets measured at fair value through other comprehensive income, government grants, and exchange gains, while other expenses decreased by 28.36% to RMB 29,169 thousand 2025 H1 Other Income and Expenses (RMB Thousand) | Item | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Dividend income from financial assets measured at fair value through other comprehensive income | 163,985 | 24,961 | | Government grants | 881,421 | 148,932 | | Exchange gains | 653,273 | 259,361 | | Total other income | 1,852,627 | 593,853 | | Total other expenses | (29,169) | (40,716) | - Other income significantly increased by 211.97% year-on-year, primarily due to higher net exchange gains and dividend income from financial assets measured at fair value through other comprehensive income[35][71] - Other expenses decreased by 28.36% year-on-year[35][71] 6 Finance Income and Costs In H1 2025, the Group's net finance income slightly increased to RMB 1,444,518 thousand, with finance income decreasing by 2.66% to RMB 3,009,276 thousand due to lower deposit interest rates, and finance costs decreasing by 6.00% to RMB 1,564,758 thousand due to lower loan interest rates 2025 H1 Finance Income and Costs (RMB Thousand) | Item | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Total finance income | 3,009,276 | 3,091,382 | | Total finance costs | (1,564,758) | (1,664,637) | | Net finance income | 1,444,518 | 1,426,745 | - Finance income decreased by 2.66% year-on-year, mainly due to a decrease in interest income as deposit rates declined[36][73] - Finance costs decreased by 6.00% year-on-year, mainly due to a decrease in interest expenses as loan rates declined[36][74] 7 Income Tax Expense In H1 2025, the Group's income tax expense slightly decreased by 0.24% to RMB 3,795,823 thousand, with tax provisions based on prevailing rates ranging from 5% to 39% in the countries of operation, including a 25% statutory corporate income tax rate in China and 16.5% for Hong Kong profits tax 2025 H1 Income Tax Expense (RMB Thousand) | Item | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Current income tax | 3,611,895 | 3,398,160 | | Deferred income tax | 183,928 | 406,782 | | Total income tax expense | 3,795,823 | 3,804,942 | - Income tax expense decreased by 0.24% year-on-year[37][76] - Tax is provided at the prevailing relevant tax rates in the countries where the Group operates, ranging from 5% to 39%, with the statutory corporate income tax rate in China being 25% and Hong Kong profits tax at 16.5%[38] 8 Dividends The Board approved an interim profit distribution plan on August 28, 2025, to distribute a cash dividend of RMB 0.56 per share (tax inclusive) to all shareholders, totaling approximately RMB 8.674 billion, representing about 50% of the net profit attributable to listed company shareholders for H1 2025, which is higher than the RMB 0.52 per share in H1 2024 - The Board announced an interim dividend of RMB 0.56 per ordinary share (tax inclusive) for 2025, totaling approximately RMB 8.674 billion based on the total share capital[39] - This dividend amount represents approximately 50% of the Company's net profit attributable to listed company shareholders for H1 2025[39] - In H1 2024, a cash dividend of RMB 0.52 per share (tax inclusive) was distributed, totaling approximately RMB 8.3 billion, representing about 50% of the net profit attributable to listed company shareholders for H1 2024[39] 9 Earnings Per Share In H1 2025, both basic and diluted earnings per share attributable to equity holders of the Company were RMB 1.12, an increase from RMB 1.05 in the corresponding period of 2024 9.1 Basic Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the period, amounting to RMB 1.12 for H1 2025 2025 H1 Basic Earnings Per Share (RMB) | Indicator | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company | 17,527,589,000 | 16,870,109,000 | | Weighted Average Number of Ordinary Shares | 15,634,868,388 | 16,023,215,797 | | Basic Earnings Per Share | 1.12 | 1.05 | 9.2 Diluted Diluted earnings per share is calculated by adjusting the profit attributable to equity holders and the weighted average number of ordinary shares for the effect of all dilutive potential ordinary shares, amounting to RMB 1.12 for H1 2025 2025 H1 Diluted Earnings Per Share (RMB) | Indicator | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company | 17,527,589,000 | 16,870,109,000 | | Weighted Average Number of Ordinary Shares (Adjusted) | 15,638,205,569 | 16,029,729,330 | | Diluted Earnings Per Share | 1.12 | 1.05 | 10 Trade and Other Receivables and Contract Assets As of June 30, 2025, the Group's total trade and other receivables and contract assets increased to RMB 17,424,620 thousand, with trade receivables primarily from third parties and related parties, mostly due within one year, and prepayments, deposits, and other receivables also showing significant growth Trade and Other Receivables and Contract Assets as of June 30, 2025 (RMB Thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 10,223,420 | 8,759,225 | | Bills receivable | 122,484 | 149,858 | | Contract assets | 206,043 | 239,795 | | Prepayments, deposits and other receivables | 6,872,673 | 5,348,566 | | Total | 17,424,620 | 14,497,444 | - The general credit period for trade receivables is within 90 days, primarily including shipping-related receivables[46] - Net trade receivables, bills receivable, and contract assets amounted to RMB 10,551,947 thousand as of June 30, 2025, with the largest proportion due within one year[46] 11 Trade and Other Payables and Contract Liabilities As of June 30, 2025, the Group's total trade and other payables and contract liabilities slightly increased to RMB 105,500,871 thousand, with accrued expenses being the largest component, and trade payables and bills payable primarily from third parties and fellow subsidiaries, mostly due within one year Trade and Other Payables and Contract Liabilities as of June 30, 2025 (RMB Thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables and bills payable | 16,784,391 | 15,569,001 | | Accrued expenses | 69,014,733 | 70,469,951 | | Other payables | 19,193,426 | 17,583,381 | | Contract liabilities | 508,321 | 646,722 | | Total | 105,500,871 | 104,269,055 | - An analysis of trade payables and bills payable by aging shows that the largest proportion, RMB 16,744,006 thousand, is due within one year[47] 12 Provisions and Other Liabilities As of June 30, 2025, the Group's total provisions and other liabilities amounted to RMB 6,977,523 thousand, including a significant onerous contract provision of RMB 6,419,439 thousand related to OOCL's minimum throughput commitment at Long Beach Container Terminal, reflecting high uncertainties from the US economic environment and tariff policies Provisions and Other Liabilities as of June 30, 2025 (RMB Thousand) | Item | Current Portion | Non-current Portion | Total | | :--- | :--- | :--- | :--- | | One-off housing subsidy provision | – | 20,612 | 20,612 | | Onerous contract provision | – | 6,419,439 | 6,419,439 | | Deferred income and others | 51,392 | 486,080 | 537,472 | | Total | 51,392 | 6,926,131 | 6,977,523 | - The onerous contract provision is primarily related to OOCL's minimum vessel throughput commitment at Long Beach Container Terminal, due to high uncertainties arising from the US economic environment, tariff policies, and other targeted policies[48][49] 13 Events After the Reporting Period On August 28, 2025, the Board announced an interim dividend of RMB 0.56 per ordinary share (tax inclusive), with no other significant events disclosed after the reporting period - On August 28, 2025, the Board announced an interim dividend of RMB 0.56 per ordinary share (tax inclusive)[50] I. Management Discussion and Analysis of the Group's Operations During the Reporting Period In H1 2025, the Group achieved steady growth despite a complex global container shipping market, with increases in container shipping volume, terminal throughput, revenue, and net profit attributable to listed company shareholders, alongside an interim cash dividend and share repurchases 1.1 Overall Operating Performance In H1 2025, the Group achieved robust growth with container shipping volume increasing by 6.59% to 13.2809 million TEUs and terminal throughput by 6.35% to 74.2960 million TEUs, leading to a 7.78% rise in operating revenue and a 3.90% increase in net profit attributable to listed company shareholders 2025 H1 Key Operating Data | Indicator | 2025 H1 | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Container Shipping Business Bill of Lading Volume | 13.2809 million TEUs | 6.59 | | Terminal Business Total Throughput | 74.2960 million TEUs | 6.35 | | Operating Revenue | RMB 109.099 billion | 7.78 | | Earnings Before Interest and Taxes (EBIT) | RMB 25.483 billion | 3.35 | | Net Profit | RMB 20.196 billion | 4.88 | | Net Profit Attributable to Listed Company Shareholders | RMB 17.528 billion | 3.90 | - The Board announced an interim cash dividend of RMB 0.56 per share (tax inclusive) for 2025 to all shareholders, representing approximately 50% of the net profit attributable to listed company shareholders[53] - During the reporting period, the Company repurchased approximately 102 million A shares and 237 million H shares, all of which have been cancelled[53] 1.2 Adapting to Economic and Trade Landscape, Focusing on Core Business, and Optimizing Global Shipping Network The Group actively responds to globalization trends by upgrading its fleet to 557 self-operated container vessels with a total capacity exceeding 3.4 million TEUs, strengthening THE Alliance operations, optimizing main trade lane layouts, and expanding market presence around strategic hubs like Chancay, Yangpu, and Piraeus Port to enhance its global network and integrated channel services - The self-operated container fleet reached 557 vessels with a total capacity exceeding 3.4 million TEUs, holding new vessel orders for 910,000 TEUs, maintaining its position in the industry's top tier[55] - Strengthened the stable operation of THE Alliance, flexibly allocated capacity, and optimized the layout of main trade lanes to effectively respond to rapid changes in market supply and demand[55] - Focused on key global strategic hubs, including Chancay Hub Port, Hainan Free Trade Port Yangpu Hub Port, and Piraeus Port, to further expand global market reach and enhance integrated channel network service capabilities[56] 1.3 Following Industry Trends, Strengthening Digital Intelligence Empowerment, and Enhancing Full-Chain Service Level The Group is accelerating the development of digital supply chain capabilities, deepening the application of TMS, WMS, and FMS systems, expanding AI+ R&D, launching "Express Booking" and intelligent customer service platforms, and establishing a global sea-land intermodal network covering 56 countries/regions with customized solutions for specific clients - Deepened the application of supply chain systems such as TMS (Transportation Management System), WMS (Warehouse Management System), and FMS (Feeder Management System), and expanded AI+ R&D applications including intelligent freight rates, intelligent slot management, intelligent container repositioning, and intelligent truck quotes[57] - Online "Express Booking" and intelligent customer service platforms were successively launched, and customized control tower solutions empower clients to efficiently manage global supply chains[57] - Launched trailer products covering 56 countries (regions) globally, achieving global visibility, inquiry, purchase, and delivery, forming a global sea-land intermodal network, and providing "Overseas Express" services customized for "new three" clients[58] 1.4 Strengthening Synergy, Accelerating Green Transformation, and Promoting Full-Cycle Decarbonization The Group actively promotes green transformation through new vessel construction and technological upgrades, having ordered 42 methanol dual-fuel new vessels, with the successful maiden voyage and green methanol bunkering of China's first methanol dual-fuel container vessel, "COSCO SHIPPING Yangpu," establishing a full methanol fuel chain, and will continue to accelerate global digital supply chain and green low-carbon development - Through a combination of new vessel construction and technological upgrades, the Group is accelerating the structural upgrade of its green fleet, having cumulatively ordered 42 methanol dual-fuel new vessels with a capacity of 780,000 TEUs[60] - China's first methanol dual-fuel container vessel, "COSCO SHIPPING Yangpu," made its maiden voyage to Yangpu Port and completed domestic green methanol bunkering, marking the Group's joint establishment of a full methanol fuel chain from production to transportation and bunkering[60] - Looking ahead, the Group will accelerate the development of a global digital supply chain and green low-carbon transformation, aligning with its positioning as a "global digital supply chain operation and investment platform with container shipping as its core"[60] II. Analysis of Key Profit and Loss Items and Cash Flow This section analyzes the Group's key profit and loss items and cash flows for H1 2025, highlighting a 7.78% increase in revenue, an 11.03% rise in cost of services, a 211.97% surge in other income, a 13.78% increase in net cash from operating activities, and a 41.25% increase in net cash used in financing activities 2.1 Analysis Table of Key Items in Consolidated Statement of Profit or Loss and Consolidated Statement of Cash Flows In H1 2025, the Group's revenue increased by 7.78%, while cost of services rose by 11.03%, and other income saw a substantial 211.97% increase, with net cash from operating activities growing by 13.78% and net cash used in financing activities significantly increasing by 41.25% 2025 H1 Key Profit and Loss and Cash Flow Items Changes (RMB Thousand) | Item | 2025 H1 | 2024 H1 (Restated) | Difference | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 109,099,344 | 101,224,495 | 7,874,849 | 7.78 | | Cost of Services | (86,670,370) | (78,059,101) | (8,611,269) | 11.03 | | Other Income | 1,852,627 | 593,853 | 1,258,774 | 211.97 | | Net Cash Flows from Operating Activities | 25,776,977 | 22,654,387 | 3,122,590 | 13.78 | | Net Cash Flows Used in Financing Activities | (30,366,227) | (21,498,343) | (8,867,884) | 41.25 | 2.2 Revenue In H1 2025, the Group's total operating revenue grew by 7.78% to RMB 109,099,344 thousand, with container shipping revenue increasing by 7.49% and terminal business revenue by 14.75%, while sales to the top five customers accounted for 4.02% of total sales 2.2.1 Overall Situation The Group's operating revenue for H1 2025 was RMB 109,099,344 thousand, an increase of RMB 7,874,849 thousand or 7.78% compared to the same period last year - The Group's operating revenue for H1 2025 was RMB 109,099,344 thousand, an increase of RMB 7,874,849 thousand or 7.78% compared to the same period last year[63] 2.2.2 Container Shipping Business Revenue In H1 2025, container shipping business revenue reached RMB 104,803,089 thousand, a 7.49% year-on-year increase, with COSCO SHIPPING Lines contributing RMB 73,029,414 thousand, up 8.26% - Container shipping business revenue for H1 2025 was RMB 104,803,089 thousand, an increase of RMB 7,302,378 thousand or 7.49% compared to the same period last year[64] - COSCO SHIPPING Lines achieved container shipping business revenue of RMB 73,029,414 thousand, an increase of RMB 5,570,141 thousand or 8.26% compared to the same period last year[64] 2.2.3 Terminal Business Revenue In H1 2025, terminal business revenue was RMB 5,842,108 thousand, an increase of RMB 750,973 thousand or 14.75% compared to the same period last year - Terminal business revenue for H1 2025 was RMB 5,842,108 thousand, an increase of RMB 750,973 thousand or 14.75% compared to the same period last year[65] 2.2.4 Major Sales Customers The Group's sales to its top five customers in H1 2025 amounted to RMB 4,382,630 thousand, representing 4.02% of total sales for the reporting period - The Group's sales to its top five customers in H1 2025 amounted to RMB 4,382,630 thousand, representing 4.02% of total sales for the reporting period[66] 2.3 Costs In H1 2025, the Group's total operating costs increased by 11.03% to RMB 86,670,370 thousand, with container shipping business costs rising by 10.80% and terminal business costs by 16.80% 2.3.1 Overall Situation In H1 2025, the Group incurred operating costs of RMB 86,670,370 thousand, an increase of RMB 8,611,269 thousand or 11.03% compared to the same period last year - In H1 2025, the Group incurred operating costs of RMB 86,670,370 thousand, an increase of RMB 8,611,269 thousand or 11.03% compared to the same period last year[68] 2.3.2 Container Shipping Business Costs In H1 2025, container shipping business costs were RMB 83,937,362 thousand, a 10.80% year-on-year increase, driven by a 16.14% rise in equipment and cargo transportation costs and a 14.78% increase in vessel costs - Container shipping business costs for H1 2025 were RMB 83,937,362 thousand, an increase of RMB 8,179,766 thousand or 10.80% compared to the same period last year[69] - 2025 H1 Container Shipping Business Cost Composition (RMB Thousand) | Cost Item | 2025 H1 | 2024 H1 (Restated) | Change Rate (%) | | :--- | :--- | :--- | :--- | | Equipment and Cargo Transportation Costs | 40,844,711 | 35,167,509 | 16.14 | | Vessel Costs | 17,227,794 | 15,008,821 | 14.78 | | Subtotal Container Shipping Business Costs | 83,937,362 | 75,757,596 | 10.80 | 2.3.3 Terminal Business Costs In H1 2025, terminal business costs were RMB 4,241,140 thousand, an increase of RMB 609,967 thousand or 16.80% compared to the same period last year - Terminal business costs for H1 2025 were RMB 4,241,140 thousand, an increase of RMB 609,967 thousand or 16.80% compared to the same period last year[70] 2.4 Other Profit and Loss Items In H1 2025, the Group's net other income and expenses surged by 229.66% to RMB 1,823,458 thousand, primarily due to increased net exchange gains and dividend income from financial assets, while selling, general and administrative expenses slightly decreased by 0.74%, finance income and costs both declined due to lower interest rates, and share of profits from joint ventures and associates grew by 9.81% 2.4.1 Net Other Income and Expenses In H1 2025, net other income and expenses amounted to RMB 1,823,458 thousand, an increase of RMB 1,270,321 thousand or 229.66% compared to the same period last year, mainly due to higher net exchange gains and dividend income from financial assets measured at fair value through other comprehensive income - Net other income and expenses for H1 2025 amounted to RMB 1,823,458 thousand, an increase of RMB 1,270,321 thousand or 229.66% compared to the same period last year[61][71] - During the reporting period, the Group's net exchange gains and dividend income from financial assets measured at fair value through other comprehensive income increased year-on-year[71] 2.4.2 Selling, General and Administrative Expenses The Group's selling, general and administrative expenses for H1 2025 were RMB 4,544,073 thousand, a decrease of RMB 34,034 thousand or 0.74% compared to the same period last year - The Group's selling, general and administrative expenses for H1 2025 were RMB 4,544,073 thousand, a decrease of RMB 34,034 thousand or 0.74% compared to the same period last year[72] 2.4.3 Finance Income The Group's finance income for H1 2025 was RMB 3,009,276 thousand, a decrease of RMB 82,106 thousand or 2.66% compared to the same period last year, primarily due to lower interest income as deposit rates declined - The Group's finance income for H1 2025 was RMB 3,009,276 thousand, a decrease of RMB 82,106 thousand or 2.66% compared to the same period last year, primarily due to lower interest income as deposit rates declined[73] 2.4.4 Finance Costs The Group's finance costs for H1 2025 were RMB 1,564,758 thousand, a decrease of RMB 99,879 thousand or 6% compared to the same period last year, primarily due to lower interest expenses as loan rates declined - The Group's finance costs for H1 2025 were RMB 1,564,758 thousand, a decrease of RMB 99,879 thousand or 6% compared to the same period last year, primarily due to lower interest expenses as loan rates declined[74] 2.4.5 Share of Profits Less Losses of Joint Ventures and Associates The Group's share of profits less losses of joint ventures and associates for H1 2025 totaled RMB 2,828,859 thousand, an increase of RMB 252,683 thousand or 9.81% compared to the same period last year - The Group's share of profits less losses of joint ventures and associates for H1 2025 totaled RMB 2,828,859 thousand, an increase of RMB 252,683 thousand or 9.81% compared to the same period last year[75] 2.4.6 Income Tax Expense In H1 2025, the Group's income tax expense was RMB 3,795,823 thousand, a decrease of RMB 9,119 thousand or 0.24% compared to the same period last year - In H1 2025, the Group's income tax expense was RMB 3,795,823 thousand, a decrease of RMB 9,119 thousand or 0.24% compared to the same period last year[76] 2.4.7 Major Suppliers The Group's purchases from its top five suppliers in H1 2025 amounted to RMB 13,140,527 thousand, representing 15.27% of total purchases for the reporting period - The Group's purchases from its top five suppliers in H1 2025 amounted to RMB 13,140,527 thousand, representing 15.27% of total purchases for the reporting period[77] 2.5 Net Cash Flows from Operating, Investing, and Financing Activities In H1 2025, the Group's net cash inflow from operating activities increased by 13.78% due to improved operating performance, while net cash outflow from investing activities slightly rose due to increased external equity investments, and net cash outflow from financing activities significantly increased by 41.25% due to higher dividend distribution and share repurchases 2.5.1 Net Cash Flows from Operating Activities In H1 2025, net cash inflow from operating activities was RMB 25,776,977 thousand, an increase of RMB 3,122,590 thousand or 13.78% compared to the same period last year, primarily due to improved operating performance - Net cash inflow from operating activities for H1 2025 was RMB 25,776,977 thousand, an increase of RMB 3,122,590 thousand or 13.78% compared to the same period last year[79] - This was primarily due to the Group's improved operating performance during the reporting period[79] 2.5.2 Net Cash Flows from Investing Activities In H1 2025, net cash outflow from investing activities was RMB 10,501,177 thousand, an increase of RMB 145,578 thousand or 1.41% compared to the same period last year, mainly due to increased external equity investments, partially offset by reduced cash payments for vessel construction and terminal development - Net cash outflow from investing activities for H1 2025 was RMB 10,501,177 thousand, an increase of RMB 145,578 thousand or 1.41% compared to the same period last year[80] - During the reporting period, the Group's cash payments for external equity investments increased year-on-year, cash dividends received from joint ventures and associates decreased year-on-year, and cash payments for vessel construction and terminal development decreased year-on-year[80] 2.5.3 Net Cash Flows from Financing Activities In H1 2025, net cash outflow from financing activities was RMB 30,366,227 thousand, an increase of RMB 8,867,884 thousand or 41.25% compared to the same period last year, primarily due to increased cash payments for dividend distribution and share repurchases - Net cash outflow from financing activities for H1 2025 was RMB 30,366,227 thousand, an increase of RMB 8,867,884 thousand or 41.25% compared to the same period last year[81] - During the reporting period, the Group's cash payments for dividend distribution and share repurchases increased, while cash payments for repayment of borrowings decreased year-on-year[81] 2.5.4 Effect of Exchange Rate Changes on Cash and Cash Equivalents As of June 30, 2025, the effect of exchange rate changes on cash and cash equivalents was an increase of RMB 44,258 thousand - As of June 30, 2025, the balance of cash and cash equivalents increased by RMB 44,258 thousand due to exchange rate changes[82] III. Liquidity, Financial Resources, and Capital Structure As of June 30, 2025, the Group's total assets slightly increased by 0.21% to RMB 498,497,058 thousand, while total liabilities grew by 1.50% to RMB 215,603,431 thousand, resulting in a 16.09% decrease in net current assets and a 6.02 percentage point reduction in the net cash (debt) to equity ratio 3.1 Overall Situation As of June 30, 2025, the Group's total assets increased by 0.21% to RMB 498,497,058 thousand, and total liabilities increased by 1.50% to RMB 215,603,431 thousand, while net cash decreased by RMB 15,194,419 thousand to RMB 134,318,973 thousand, net current assets decreased by 16.09%, and the net cash (debt) to equity ratio decreased by 6.02 percentage points to 31.86% - As of June 30, 2025, the Group's total assets were RMB 498,497,058 thousand, an increase of RMB 1,024,844 thousand or 0.21% from the end of last year; total liabilities were RMB 215,603,431 thousand, an increase of RMB 3,189,994 thousand or 1.50% from the end of last year[83] - As of June 30, 2025, the Group's cash and cash equivalents were RMB 169,142,909 thousand, which, after deducting total outstanding borrowings of RMB 34,823,936 thousand, resulted in net cash of RMB 134,318,973 thousand, a decrease of RMB 15,194,419 thousand from the end of last year[83] - As of June 30, 2025, net current assets were RMB 69,922,644 thousand, a decrease of RMB 13,403,630 thousand or 16.09% from the end of last year; the net cash (debt) to equity ratio was 31.86%, a decrease of 6.02 percentage points from the end of last year[83] 3.2 Debt Analysis As of June 30, 2025, the Group's total short-term and long-term borrowings amounted to RMB 34,823,936 thousand, with bank borrowings accounting for 93.04% and secured borrowings representing 50.08% of total borrowings, most of which are at floating rates, and US dollar borrowings being the largest component at 65.03% 3.2.1 Loan Categories and Repayment Periods As of June 30, 2025, the Group's total short-term and long-term borrowings amounted to RMB 34,823,936 thousand, with long-term borrowings primarily concentrated in repayment periods of three to five years (RMB 11,700,494 thousand) and over five years (RMB 10,824,457 thousand) Total Borrowings as of June 30, 2025 (RMB Thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Short-term borrowings | 2,402,929 | 1,703,638 | | Long-term borrowings | 32,421,007 | 32,972,048 | | Total Short-term and Long-term Borrowings | 34,823,936 | 34,675,686 | - Long-term borrowings repayment periods are mainly concentrated in three to five years (RMB 11,700,494 thousand) and over five years (RMB 10,824,457 thousand)[85] 3.2.2 By Currency of Borrowings As of June 30, 2025, US dollar denominated borrowings accounted for 65.03% (RMB 22,501,183 thousand) of the Group's total borrowings, with RMB borrowings at 21.00% and Euro borrowings at 12.39% - As of June 30, 2025, the Group's US dollar denominated borrowings accounted for 65.03% of total borrowings, RMB for 21.00%, and Euro for 12.39%[87] 3.2.3 Secured Borrowings As of June 30, 2025, the Group's total secured borrowings amounted to RMB 17,326,140 thousand, representing 50.08% of total borrowings, with the majority of the Group's borrowings being at floating interest rates - As of June 30, 2025, the Group's total secured borrowings amounted to RMB 17,326,140 thousand, representing 50.08% of total borrowings[86][88] - The majority of the Group's borrowings are at floating interest rates[86] 3.3 Company Guarantees As of June 30, 2025, guarantees provided among the Group's consolidated entities amounted to RMB 8,317,779 thousand, a decrease from the end of 2024, and an additional guarantee of RMB 407,516 thousand was provided for an associate - As of June 30, 2025, guarantees provided among the Group's consolidated entities amounted to RMB 8,317,779 thousand, a decrease from the end of 2024[89] - A guarantee of RMB 407,516 thousand was provided for an associate[89] 3.4 Contingent Liabilities The Group is involved in various claims and litigations, but based on legal counsel's opinion and available information, the directors believe these claims will not have a material impact on the Group's condensed consolidated financial statements for the six months ended June 30, 2025 - The Group is involved in various claims and litigations, including but not limited to claims and litigations arising from vessel damage during transit, cargo loss, delivery delays, vessel collisions, early termination of vessel charter contracts, and disputes in pledge supervision business[90] - Based on the opinion of legal counsel and/or information available to the Group, the directors believe that the amounts of these claims will not have a material impact on the Group's condensed consolidated financial statements for the six months ended June 30, 2025[90] 3.5 Foreign Exchange Risk The Group operates internationally and is exposed to foreign exchange risk arising from various non-functional currencies, primarily related to bank balances, receivables, payables, and bank borrowings, with management monitoring this risk and considering derivative financial instruments for hedging when appropriate - The Group operates internationally and is exposed to foreign exchange risk arising from various non-functional currencies, primarily related to bank balances, receivables, payables, and bank borrowings denominated in non-functional currencies[91] - Management monitors foreign exchange risk and considers using derivative financial instruments to hedge foreign exchange risk when appropriate[91] 3.6 Capital Commitments As of June 30, 2025, the Group has capital commitments of RMB 57,071,031 thousand for the construction of 51 new container vessels and RMB 2,891,575 thousand for terminal investments - As of June 30, 2025, the Group held orders for 51 new vessels, with future capital commitments for the construction of container vessels amounting to RMB 57,071,031 thousand[92] - As of June 30, 2025, the Group's capital commitments for terminal investments totaled RMB 2,891,575 thousand, including RMB 1,965,413 thousand for fixed asset purchases and RMB 926,162 thousand for terminal equity investments[92] 3.7 Credit Facilities As of June 30, 2025, the Group had unused bank loan credit facilities of RMB 16,036,396 thousand, and management is highly focused on potential risks from expanding financing scale, strengthening monitoring of debt size and asset-liability ratios of its subsidiaries - As of June 30, 2025, the Group had unused bank loan credit facilities of RMB 16,036,396 thousand[93] - The Group is highly focused on the potential risks arising from expanding financing scale and strengthens monitoring of the debt size and asset-liability ratios of its subsidiaries[93] 3.8 Financing Plan The Group plans to proactively arrange financing, strengthen fund and debt management, improve capital utilization efficiency, and effectively control debt size, considering maturing debt repayment, debt swaps, and future significant capital expenditures - The Group will proactively arrange financing, considering maturing debt repayment, debt swaps, and future significant capital expenditures[94] - It will strengthen fund and debt management, improve capital utilization efficiency, and effectively control debt size[94] IV. Investment Analysis This section provides an analysis of the Group's investment activities, including external equity investments and financial assets measured at fair value 4.1 Overall Analysis of External Equity Investments As of June 30, 2025, the Group's investment balance in joint ventures and associates was RMB 75.004 billion, an increase of RMB 2.503 billion from the end of last year - As of June 30, 2025, the Group's investment balance in joint ventures and associates was RMB 75.004 billion, an increase of RMB 2.503 billion from the end of last year[95] 4.2 Significant Equity Investments There were no significant equity investments during the reporting period - Not applicable[96] 4.3 Significant Non-Equity Investments There were no significant non-equity investments during the reporting period - Not applicable[97] 4.4 Financial Assets Measured at Fair Value As of June 30, 2025, the Group's total financial assets measured at fair value decreased to RMB 4,895,309 thousand, primarily due to the sale/redemption of non-current financial assets measured at fair value through profit or loss and fair value changes recognized in other comprehensive income 2025 H1 Changes in Financial Assets Measured at Fair Value (RMB Thousand) | Asset Category | Beginning Balance | Fair Value Change Gain/Loss for the Period | Cumulative Fair Value Change Recognized in Equity | Amount Sold/Redeemed During the Period | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial assets measured at fair value through profit or loss – current portion | 65,948 | 10,317 | – | – | 75,962 | | Financial assets measured at fair value through profit or loss – non-current portion | 444,761 | 18,325 | – | (420,189) | 47,894 | | Financial assets measured at fair value through other comprehensive income | 4,916,682 | – | (132,960) | – | 4,771,453 | | Total | 5,427,391 | 28,642 | (132,960) | (420,189) | 4,895,309 | V. Industry Operating Business Analysis This section provides an in-depth analysis of the Group's container shipping and terminal businesses, detailing cargo volume, revenue by trade lane, and key performance indicators 5.1 Container Shipping Business In H1 2025, the Group's container shipping business saw cargo volume increase by 6.59% to 13.2809 million TEUs and trade lane revenue grow by 6.88% to RMB 96,608,725 thousand, with other international and intra-Asia trade lanes showing strong performance, while EBIT margin slightly decreased by 0.87 percentage points to 20.52% 5.1.1 Cargo Volume In H1 2025, the Group's total cargo volume increased by 6.59% to 13,280,904 TEUs, with all major trade lanes showing growth, and other international (including Atlantic) trade lanes experiencing the largest increase at 11.95% 2025 H1 Group Cargo Volume (TEUs) | Trade Lane | Current Period | Prior Year Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Trans-Pacific | 2,393,008 | 2,285,145 | 4.72 | | Asia-Europe (including Mediterranean) | 1,947,593 | 1,874,775 | 3.88 | | Intra-Asia (including Australia) | 4,495,293 | 4,272,529 | 5.21 | | Other International (including Atlantic) | 1,578,260 | 1,409,782 | 11.95 | | Mainland China | 2,866,750 | 2,617,312 | 9.53 | | Total | 13,280,904 | 12,459,543 | 6.59 | 5.1.2 Revenue by Trade Lane In H1 2025, the Group's total trade lane revenue increased by 6.88% to RMB 96,608,725 thousand, with other international (including Atlantic) trade lanes growing by 18.79% and intra-Asia (including Australia) trade lanes by 13.82%, while Asia-Europe trade lane revenue slightly decreased by 3.93% 2025 H1 Group Trade Lane Revenue (RMB Thousand) | Trade Lane | Current Period | Prior Year Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Trans-Pacific | 28,322,639 | 27,731,163 | 2.13 | | Asia-Europe (including Mediterranean) | 19,501,540 | 20,299,731 | (3.93) | | Intra-Asia (including Australia) | 26,551,236 | 23,327,346 | 13.82 | | Other International (including Atlantic) | 15,789,242 | 13,291,789 | 18.79 | | Mainland China | 6,444,068 | 5,739,137 | 12.28 | | Total | 96,608,725 | 90,389,166 | 6.88 | 5.1.3 Key Performance Indicators In H1 2025, the Group's container shipping business revenue was RMB 104,803,089 thousand, a 7.49% increase, with EBIT growing by 3.14% to RMB 21,506,754 thousand, but EBIT margin decreased by 0.87 percentage points to 20.52%, while supply chain revenue excluding ocean shipping increased by 8.37% 2025 H1 Group Container Shipping Business Key Performance Indicators (RMB Thousand) | Item | Current Period | Prior Year Period (Restated) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Container Shipping Business Revenue | 104,803,089 | 97,500,711 | 7,302,378 | | Of which: Supply Chain Revenue excluding Ocean Shipping | 21,582,976 | 19,916,687 | 1,666,289 | | Earnings Before Interest and Taxes (EBIT) | 21,506,754 | 20,851,773 | 654,981 | | EBIT Margin | 20.52% | 21.39% | Decrease of 0.87 percentage points | | Net Profit | 16,937,574 | 16,330,785 | 606,789 | - International trade lane revenue per TEU (USD/TEU) decreased from USD 1,210.70 to USD 1,205.95, a decrease of USD 4.75[106] 5.2 Terminal Business In H1 2025, COSCO SHIPPING Ports' total throughput increased by 6.35% to 74.2960 million TEUs, with controlling terminals' throughput rising by 3.57% and equity-accounted terminals' throughput by 7.17%, and overseas regions showing strong growth of 8.37% - In H1 2025, COSCO SHIPPING Ports' total throughput was 74.2960 million TEUs, a year-on-year increase of 6.35%[108] - Throughput of controlling terminals increased by 3.57% to 16.4820 million TEUs; throughput of equity-accounted terminals increased by 7.17% to 57.8140 million TEUs[108] - 2025 H1 Terminal Total Throughput by Region (TEUs) | Terminal Region | Current Period | Prior Year Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Bohai Rim Region | 25,835,742 | 24,360,269 | 6.06 | | Pearl River Delta Region | 14,633,421 | 13,669,963 | 7.05 | | Southwest Coastal Region | 4,758,500 | 4,320,100 | 10.15 | | Overseas Regions | 17,905,846 | 16,522,679 | 8.37 | Events After Reporting Period On July 22, 2025, the proposed reduction in the company's registered capital and the revised Articles of Association became effective after registration with the market entity registration authority, along with the Rules of Procedure for General Meetings and Board Meetings - On July 22, 2025, the proposed reduction in the company's registered capital and the revised Articles of Association became effective after registration with the market entity registration authority, and the Rules of Procedure for General Meetings and Board Meetings also became effective[111] Audit Committee The Audit Committee, comprising three independent non-executive directors, has reviewed and recommended the adoption of the unaudited interim financial information for the six months ended June 30, 2025, with its primary duties including reviewing financial reporting, internal controls, and liaising with external auditors - The Audit Committee, composed of three independent non-executive directors, has reviewed the unaudited interim financial information for the six months ended June 30, 2025, and recommended its adoption by the Board[113] - The primary duties of the Audit Committee include reviewing the Group's financial reporting process and internal control systems, the completeness and accuracy of accounts, and liaising with external auditors on behalf of the Board[113] Corporate Governance The Company is committed to maintaining high standards of corporate governance and has adopted its Corporate Governance Code, with directors confirming compliance with the code's provisions during the six months ended June 30, 2025 - The Company is committed to maintaining high standards of corporate governance for the Group and has adopted its Corporate Governance Code[114] - The directors confirm that at no time during the six months ended June 30, 2025, was there any non-compliance with the Corporate Governance Code or any applicable code provisions contained therein[114] Employees and Remuneration Policy The Company has organized various professional and comprehensive training programs to enhance the quality, capabilities, and team spirit of its human resources, and regularly reviews its remuneration policy, including directors' emoluments, considering company performance and market conditions to formulate better incentive and assessment measures - The Company has organized various professional and comprehensive training programs to enhance the quality, capabilities, and team spirit of its human resources[115] - The Company regularly reviews its remuneration policy (including directors' emoluments), taking into account the Company's performance and market conditions, to formulate better incentive and assessment measures[115] Standard Code for Securities Transactions by Directors The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as the code for securities transactions by its directors and supervisors, who have confirmed compliance with its provisions during the six months ended June 30, 2025 - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as the code for securities transactions by its directors and supervisors[116] - Following specific inquiries to all directors and supervisors, each director and supervisor confirmed that they had complied with the required standards set out in the Standard Code throughout the six months ended June 30, 2025[116] Repurchase, Sale or Redemption of Listed Securities The Board is authorized to repurchase up to 10% of issued A shares and 10% of issued H shares, with 102,417,499 A shares and 237,307,000 H shares repurchased and cancelled during H1 2025 - The Board is authorized to repurchase up to 10% of the issued A shares and 10% of the issued H shares[117] 2025 H1 A Share Repurchase Status | Repurchase Month | Number of Shares Repurchased | Total Price (RMB) | | :--- | :--- | :--- |