中远海能(01138) - 2025 - 中期业绩

Financial Summary Overview of Financial Summary The Group's turnover decreased by 2.5% year-on-year, with profit attributable to equity holders declining by 29.0%, despite a 61.0% Q2 sequential increase, and EPS was RMB 39.71 cents Key Financial Indicators | Indicator | H1 2025 (CNY) | H1 2024 (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Turnover | 11.573 billion | 11.867 billion | -2.5% | | Profit attributable to equity holders of the Company | 1.894 billion | 2.668 billion | -29.0% | | Basic and diluted earnings per share | 39.71 cents | 55.92 cents | -29.0% | - Profit attributable to equity holders of the Company in the second quarter increased by 61.0% quarter-on-quarter compared to the first quarter[4] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income During the reporting period, the Group's turnover was RMB 11.573 billion, a 2.5% year-on-year decrease, with operating costs declining, leading to significant gross profit growth, but overall profit and comprehensive income decreased due to increased income tax expense and changes in other comprehensive income Key Financial Metrics | Indicator | H1 2025 (RMB Thousand) | H1 2024 (RMB Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Turnover | 11,573,025 | 11,866,805 | -2.5% | | Operating costs | (8,032,727) | (8,910,497) | -9.8% | | Gross profit | 3,834,078 | 2,662,528 | +43.9% | | Profit before tax | 3,388,650 | 2,409,328 | +40.6% | | Income tax expense | (313,650) | (553,847) | -43.4% | | Profit for the period | 2,834,803 | 2,095,678 | +35.3% | | Total comprehensive income for the period | 3,156,296 | 1,963,148 | +60.8% | - Profit for the period attributable to equity holders of the Company was RMB 1,894,278 thousand, a 29.0% year-on-year decrease[6] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets reached RMB 84.406 billion, a 4.15% increase from the end of 2024, with both non-current and current assets growing, notably a significant increase in cash and cash equivalents, while total liabilities increased, but the net debt-to-equity ratio decreased Key Financial Position Metrics | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Total assets | 84,405,848 | 81,042,317 | +4.15% | | Non-current assets | 71,832,079 | 71,506,603 | +0.45% | | Current assets | 12,573,769 | 9,535,714 | +31.87% | | Total liabilities | 44,601,842 | 42,057,160 | +6.05% | | Total equity | 39,804,006 | 38,985,157 | +2.09% | | Cash and cash equivalents | 7,655,589 | 5,661,734 | +35.22% | - The net debt-to-equity ratio decreased from 78% at the end of 2024 to 75% as of June 30, 2025, primarily due to an increase in cash and cash equivalents[94] Notes Company Information The Company is a joint stock limited company incorporated in China, primarily engaged in investment holding, oil product transportation, vessel chartering, LNG, LPG, and chemical transportation, with China COSCO Shipping Corporation Limited as its ultimate parent company, listed on the Shanghai Stock Exchange and Hong Kong Stock Exchange - The Group's principal businesses include oil product transportation, vessel chartering, LNG transportation, LPG transportation, and chemical transportation[15] - China COSCO Shipping Corporation Limited is the ultimate parent company of the Company[10] - The Company's A shares and H shares are listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, respectively[10] Basis of Preparation and Accounting Policies The interim financial information is prepared in accordance with HKAS 34 and the Listing Rules, using the historical cost basis, and during the reporting period, the Group completed a business combination under common control, integrating the controlling shareholder's chemical logistics supply chain business, with the acquired entities' operating results restated retrospectively, and adopted amendments to HKFRS for the first time, which had no significant impact - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and Appendix D2 of the Listing Rules, and measured on a historical cost basis[13][18] - The Group approved the integration of the controlling shareholder's chemical logistics supply chain business, involving Dalian Investment and COSCO Shipping (Shanghai) businesses, on October 14, 2024, and completed the acquisition on October 31, 2024, which is considered a business combination under common control[14][16] - The operating results of the acquired entities have been retrospectively restated in the condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of financial position, etc[17] Estimates The preparation of interim financial information involves management's judgments, estimates, and assumptions regarding the application of accounting policies and the amounts of assets and liabilities, with key estimates relating to the estimated useful lives, residual values, and depreciation expenses of vessels, which are adjusted based on business models, asset management policies, industry practices, and market changes - Management is required to make judgments and estimates regarding the estimated useful lives, residual values, and depreciation expenses of vessels, which affect depreciation expenses[22] - Estimates for the estimated useful lives and residual values of vessels refer to factors such as business models, asset management policies, industry practices, expected usage, maintenance, and technical or commercial obsolescence[22] Revenue and Segment Information The Group's revenue and segment information are presented by business segments (oil product transportation, LNG transportation, LPG transportation, chemical transportation) and geographical segments (domestic, international), with oil product transportation remaining the primary revenue source, but LNG transportation showing significant growth in turnover and performance - The Group's business segments include oil product transportation (including vessel chartering), LNG transportation, LPG transportation, and chemical transportation[25] Revenue and Performance by Principal Business | Business Segment | H1 2025 Turnover (RMB Thousand) | H1 2024 Turnover (RMB Thousand) | YoY Turnover Change | H1 2025 Performance (RMB Thousand) | H1 2024 Performance (RMB Thousand) | YoY Performance Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Oil Product Transportation | 10,028,775 | 10,613,285 | -5.5% | 1,973,164 | 3,271,286 | -39.7% | | LNG Transportation | 1,244,020 | 958,442 | +29.8% | 617,159 | 498,578 | +23.8% | | LPG Transportation | 140,316 | 110,960 | +26.5% | 29,516 | 24,335 | +21.3% | | Chemical Transportation | 159,914 | 184,118 | -13.1% | 42,689 | 39,879 | +7.0% | | Total | 11,573,025 | 11,866,805 | -2.5% | 2,662,528 | 3,834,078 | -30.6% | Revenue and Performance by Geographical Segment | Geographical Segment | H1 2025 Turnover (RMB Thousand) | H1 2024 Turnover (RMB Thousand) | YoY Turnover Change | H1 2025 Performance (RMB Thousand) | H1 2024 Performance (RMB Thousand) | YoY Performance Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic | 2,889,637 | 3,026,155 | -4.5% | 695,845 | 738,509 | -5.8% | | International | 8,683,388 | 8,840,650 | -1.8% | 1,966,683 | 3,095,569 | -36.5% | | Total | 11,573,025 | 11,866,805 | -2.5% | 2,662,528 | 3,834,078 | -30.6% | Business Segments Oil product transportation business experienced declines in both turnover and performance, while LNG transportation achieved significant growth, and LPG transportation also maintained growth, with chemical transportation turnover decreasing but performance increasing - Oil product transportation turnover decreased by 5.5% year-on-year, and performance decreased by 39.7% year-on-year[28] - LNG transportation turnover significantly increased by 29.8% year-on-year, and performance increased by 23.8%[28] - Chemical transportation turnover decreased by 13.1% year-on-year, but performance increased by 7.0% year-on-year[28] Geographical Segments Both domestic and international transportation experienced declines in turnover and performance, with international transportation showing a larger decrease in performance - Domestic transportation turnover decreased by 4.5% year-on-year, and performance decreased by 5.8%[32] - International transportation turnover decreased by 1.8% year-on-year, and performance decreased by 36.5%[32] Other Income and Gains, Net During the reporting period, the Group's other income and gains, net, amounted to RMB 387 million, a significant year-on-year increase of 61.1%, primarily driven by increased subsidy income and gains from disposal of property, plant, and equipment Other Income and Gains, Net | Item | H1 2025 (RMB Thousand) | H1 2024 (RMB Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Total other income | 286,874 | 167,634 | +71.1% | | Subsidies | 176,501 | 46,538 | +279.3% | | Total other gains, net | 100,377 | 72,733 | +38.0% | | Gains/(losses) on disposal of property, plant and equipment, net | 74,191 | (19) | Significant increase | | Total | 387,251 | 240,367 | +61.1% | - Subsidy income significantly increased from RMB 46,538 thousand in H1 2024 to RMB 176,501 thousand in H1 2025[34] Finance Costs During the reporting period, the Group's finance costs were RMB 708 million, a slight year-on-year increase of 1.7%, with total interest expenses increasing, but partially offset by a corresponding increase in capitalized interest Finance Costs | Item | H1 2025 (RMB Thousand) | H1 2024 (RMB Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Interest expense on bank and other loans and borrowings | 712,677 | 753,058 | -5.4% | | Interest on lease liabilities | 24,907 | 23,100 | +7.8% | | Exchange losses/(gains), net | 25,072 | (2,102) | Significant change | | Less: Capitalized interest | (29,245) | (26,179) | +11.7% | | Total finance costs | 707,673 | 695,740 | +1.7% | - The capitalization rate for interest expenses on borrowings for vessel construction ranged from 2.25% to 6.19%, a decrease compared to the same period last year[36] Income Tax Expense During the reporting period, the Group's income tax expense was RMB 314 million, a significant year-on-year decrease of 43.4%, primarily due to a reduction in current income tax provision in China, as well as an increase in deferred tax assets and a decrease in deferred tax liabilities Income Tax Expense | Item | H1 2025 (RMB Thousand) | H1 2024 (RMB Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Current income tax - China | 216,606 | 468,902 | -53.8% | | Deferred income tax assets (increase)/decrease | (33,508) | 18,448 | Significant change | | Deferred income tax liabilities increase | 122,865 | 154,975 | -20.8% | | Total income tax expense | 313,650 | 553,847 | -43.4% | - The Group continues to assess the tax impact of the OECD Pillar Two legislative template and currently has no significant current income tax risks in relevant jurisdictions[39][40] Earnings Per Share During the reporting period, the Company's basic and diluted earnings per share were both RMB 39.71 cents, a decrease from RMB 55.92 cents in the prior year, with diluted earnings equal to basic earnings as the exercise price of share options was higher than the average market price of shares Earnings Per Share | Indicator | H1 2025 (RMB Cents/Share) | H1 2024 (RMB Cents/Share) | YoY Change | | :--- | :--- | :--- | :--- | | Basic earnings per share | 39.71 | 55.92 | -29.0% | | Diluted earnings per share | 39.71 | 55.92 | -29.0% | - Diluted earnings per share are equal to basic earnings per share, as the exercise price of share options was higher than the average market price of shares, resulting in no dilutive effect[42] Basic Earnings Basic earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the period - Profit attributable to equity holders of the Company was RMB 1,894,278 thousand, with a weighted average of 4,770,776,395 ordinary shares outstanding[41] Diluted Earnings Diluted earnings are the same as basic earnings because no share options were assumed to be exercised during the period, as their exercise price was higher than the average market price of shares - No share options were assumed to be exercised when calculating diluted earnings per share, as their exercise price was higher than the average market price of shares[42] Dividends The Company decided not to implement an interim profit distribution for the first half of 2025, whereas an interim dividend of RMB 0.22 per share was distributed in the first half of 2024, and the 2024 final dividend of RMB 0.21 per share was approved at the AGM on June 30, 2025, but not yet paid during the reporting period - The Company decided not to implement an interim profit distribution for the first half of 2025[43] - An interim dividend of RMB 0.22 per share was distributed in the first half of 2024[43] - The 2024 final dividend of RMB 0.21 per share was approved but not yet paid during the reporting period[43] Management Discussion and Analysis Description of Principal Businesses, Operating Model, and Industry Conditions During the Reporting Period The Group primarily engages in the maritime transportation of bulk liquid dangerous goods such as crude oil, refined oil, LNG, LPG, and chemicals, with oil tanker and LNG transportation as its core businesses, operating in a cyclical, volatile, capital-intensive, and strictly regulated shipping industry, maintaining a leading position in global oil tanker capacity and China's oil and gas import transportation, while actively expanding its LPG and chemical transportation businesses - The Group's core businesses are oil tanker transportation and LNG transportation, providing maritime transportation services for bulk liquid dangerous goods such as crude oil, refined oil, LNG, LPG, and chemicals[44] - The shipping industry is characterized by strong cyclicality, high freight rate volatility, high capital intensity, and a strict regulatory environment[45][46] - The Group ranks first globally in oil tanker capacity, owning and controlling 157 oil tankers with 23.448 million DWT; its LNG fleet operates 52 vessels with 8.763 million CBM[48][51] Industry and Its Characteristics The shipping industry, in which the Group operates, is a core component of global economic activity, responsible for transporting most oil, natural gas, and chemical products, characterized by strong cyclicality, high freight rate volatility, high capital intensity, and strict regulation, demanding extremely high standards for transportation equipment and safety measures - The shipping industry is capital-intensive, requiring significant capital investment for vessel construction, maintenance, and operation, with a longer return on investment cycle[46] - LNG transportation demands extremely high standards for equipment insulation and safety measures, with LNG vessels recognized internationally as "three-high" products (high technology, high added value, high reliability)[46] - The shipping industry is subject to strict regulation by organizations such as the International Maritime Organization (IMO), increasing operational costs and complexity[46] The Group's Competitive Position and Operating Model in the Industry The Group ranks first globally in oil tanker capacity with a comprehensive fleet, operating oil product transportation through various methods including spot, time charter, COA contracts, and POOL operations; in LNG transportation, the Group is a leader in the Chinese market and a significant global participant, with its LNG fleet primarily serving long-term charters for stable revenue; LPG and chemical transportation businesses expand the Group's energy transportation footprint, leveraging COSCO Shipping Group's resources to provide full-chain logistics solutions - The Group's oil tanker capacity ranks first globally, owning and controlling 157 oil tankers with 23.448 million DWT, making it the world's most comprehensive oil tanker owner by vessel type[48] - The Group is a leader in China's LNG transportation business, with all operational LNG vessels serving long-term charters, ensuring relatively stable revenue[51] - LPG and chemical transportation businesses have expanded the Group's operational footprint in energy transportation and extended into the energy and chemical logistics supply chain[54] Analysis of International and Domestic Energy Shipping Market During the Reporting Period In H1 2025, the international oil shipping market saw volatile but rising freight rates, particularly for VLCCs, influenced by OPEC+ production adjustments, geopolitical events, and US tariff policies, while refined oil freight rates declined year-on-year; domestic crude oil transportation increased, but refined oil transportation decreased; the global LNG trade grew slightly, with significant European import demand, leading to spot charter rate pressure but a stable mid-to-long-term market; the LPG market maintained stable supply and demand, with Middle East supply increases boosting demand; the domestic chemical shipping market faced pressure, while international freight rates gradually recovered after a downturn - In H1 2025, international crude oil tanker freight rates showed "high-frequency, wide-range, short-duration" volatility due to geopolitical events, with the average TCE for the representative VLCC route TD3C at USD 40,370/day, a 41% quarter-on-quarter increase[57] - International refined oil tanker freight rates declined year-on-year, with the average TCE for the representative LR2 route TC1 at approximately USD 29,636/day, a 47% decrease from the prior year[59] - Global LNG trade volume increased slightly by 1.7%, with European LNG imports rising by 34.4% year-on-year, and the US maintaining its position as the largest exporter[62] - In the international LPG market, increased supply from the Middle East boosted demand, and domestic LPG, butadiene, and propylene total seaborne volume increased by 8.3% year-on-year[65][66] International Oil Shipping Market In H1 2025, international oil supply and demand showed "increased supply, stable demand," with stable crude oil seaborne trade, the Middle East and Russia remaining key exporters, limited VLCC newbuild deliveries and insufficient scrapping leading to volatile but rising freight rates due to geopolitical influences, and refined oil trade flows reshaping with new Asian refining capacity contrasting with European and American refinery closures, resulting in year-on-year freight rate declines - In H1 2025, global oil supply increased by 1.58 million barrels/day, and consumption increased by 0.66 million barrels/day[55] - 2 VLCC newbuilds were delivered and 2 were scrapped, with new orders accounting for 11.5% of the global VLCC fleet[57] - Refined oil seaborne trade volume decreased by approximately 4.5% overall, with LR2/Aframax and MR vessel types becoming the main deliveries, and new orders accounting for 17.3% and 16.0% of their respective fleet capacities[58][59] Domestic Oil Shipping Market In H1 2025, the total domestic crude oil transportation market volume increased by approximately 11% year-on-year, with a significant increase in transit crude oil cargo, while the refined oil seaborne trade volume faced pressure and declined due to structural changes in domestic gasoline consumption - The total domestic crude oil market transportation volume was approximately 47 million tons, a year-on-year increase of approximately 11%[60] - Refined oil seaborne trade volume faced pressure, and market transportation volume declined[61] LNG Shipping Market In H1 2025, global LNG trade volume increased slightly by 1.7%, with European imports significantly rising due to restocking demand, while LNG fleet supply saw accelerated scrapping of older vessels and a 47% increase in newbuild deliveries, leading to weak spot market charter rate recovery but a relatively stable mid-to-long-term time charter market - Global LNG trade volume reached 208 million tons, a year-on-year increase of approximately 1.7%[62] - European LNG imports reached 56.12 million tons, a year-on-year increase of 34.4%[62] - 28 LNG carriers were delivered in the first half, a 47% year-on-year increase, leading to weak spot market charter rate recovery[63][64] LPG Shipping Market In H1 2025, international LPG supply and demand were generally stable, with increased supply from the Middle East boosting global transportation demand, while domestic LPG demand grew slightly, and total domestic seaborne volume for LPG, butadiene, and propylene increased by 8.3% year-on-year, with the coastal domestic market less affected by international trade, providing support for capacity demand - New LPG production capacity in the Middle East is expected to see a significant increase of 14-16 million tons/year between 2025 and 2026[65] - Domestic LPG, butadiene, and propylene total seaborne volume was 2.7278 million tons, a year-on-year increase of 8.3%[66] Chemical Shipping Market In H1 2025, the domestic chemical shipping market faced pressure due to weak demand in the petrochemical industry and rising costs, while international freight rates gradually recovered after a downturn, and the number of global stainless steel chemical tankers increased - The domestic chemical shipping market faced overall pressure, with international freight rates gradually recovering from June after a downturn in March-May[67] - As of the end of June 2025, there were 1,457 global stainless steel chemical tankers, an increase of 18 vessels from the end of 2024[67] Review of Operating Performance During the Reporting Period In H1 2025, the Group's transportation volume and turnover volume both increased, but revenue from principal activities decreased by 2.5% year-on-year, and profit attributable to equity holders of the Company decreased by 29.0%, with EBITDA declining by 12.5%, yet the Group achieved stable operating performance through six measures including enhancing customer collaboration, deepening domestic synergy, securing international LNG projects, promoting technological innovation, strengthening risk control, and solidifying safety management Key Operating Performance Metrics | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Transportation volume (excluding time charter) | 94.48 million tons | - | +13.1% | | Transportation turnover volume (excluding time charter) | 342.7 billion ton-miles | - | +18.8% | | Revenue from principal activities | 11.57 billion CNY | - | -2.5% | | Profit attributable to equity holders of the Company | 1.89 billion CNY | - | -29.0% | | EBITDA | 5.07 billion CNY | - | -12.5% | - The Group implemented six measures to navigate the complex market environment, including enhancing customer collaboration, deepening domestic synergy, securing international LNG projects, promoting technological innovation, strengthening risk control, and solidifying safety management[69] Revenue from Principal Activities By transportation type, total oil product transportation revenue decreased by 5.5% year-on-year, with a 11.1 percentage point decline in gross profit margin; LNG transportation revenue increased by 29.8% year-on-year, with a slight decrease in gross profit margin; LPG transportation revenue increased by 26.5% year-on-year, with a decrease in gross profit margin; chemical transportation revenue decreased by 13.1%, but gross profit margin increased by 5.0 percentage points; by geographical segment, domestic transportation revenue decreased by 4.5%, and international transportation revenue decreased by 1.8% Principal Activities by Industry or Product | Industry or Product | Revenue (RMB Thousand) | Operating Cost (RMB Thousand) | Gross Profit Margin (%) | YoY Revenue Change (%) | YoY Operating Cost Change (%) | YoY Gross Profit Margin Change (Percentage Points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Oil Product Transportation | 10,028,775 | 8,055,611 | 19.7 | (5.5) | 9.7 | (11.1) | | LNG Transportation | 1,244,020 | 626,861 | 49.6 | 29.8 | 36.3 | (2.4) | | LPG Transportation | 140,316 | 110,800 | 21.0 | 26.5 | 27.9 | (0.9) | | Chemical Transportation | 159,914 | 117,225 | 26.7 | (13.1) | (18.7) | 5.0 | | Total | 11,573,025 | 8,910,497 | 23.0 | (2.5) | 10.9 | (9.3) | Principal Activities by Geographical Segment | Geographical Segment | Revenue (RMB Thousand) | Operating Cost (RMB Thousand) | Gross Profit Margin (%) | YoY Revenue Change (%) | YoY Operating Cost Change (%) | YoY Gross Profit Margin Change (Percentage Points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Transportation | 2,889,637 | 2,193,792 | 24.1 | (4.5) | (4.1) | (0.3) | | International Transportation | 8,683,388 | 6,716,705 | 22.6 | (1.8) | 16.9 | (12.4) | | Total | 11,573,025 | 8,910,497 | 23.0 | (2.5) | 10.9 | (9.3) | Shipping Business – Oil, Gas, and Chemical Transportation In oil shipping, the Group saw declines in foreign trade oil shipping revenue and gross profit but maintained a strong VLCC fleet layout and expanded global operations for smaller vessel types by strengthening refined fleet operations and expanding quality customers; domestic oil shipping revenue and gross profit also decreased, but market share was consolidated through customer relationship maintenance and deepened synergy; LNG shipping business saw an increase in profit attributable to equity holders, with improved operational efficiency through strict vessel construction control and strengthened crew pool development; LPG shipping revenue and gross profit increased, actively cultivating the international market and exploring the ethylene and ammonia sectors; chemical shipping revenue decreased but gross profit increased, with enhanced efficiency through new customer expansion and optimized route planning Foreign Trade Oil Shipping Business In H1 2025, foreign trade oil shipping revenue decreased by 5.5% year-on-year, and transportation gross profit decreased by 48.9% year-on-year, with gross profit margin declining by 15.2 percentage points, as the Group strengthened refined fleet operations, expanded quality customers, maintained a favorable VLCC fleet route layout, expanded global operations for smaller vessel types, and opportunistically converted between domestic and foreign trade - Foreign trade oil shipping revenue was RMB 7.29 billion, a 5.5% year-on-year decrease; transportation gross profit was RMB 1.30 billion, a 48.9% year-on-year decrease; gross profit margin was 17.9%, a 15.2 percentage point year-on-year decrease[72] - The VLCC fleet maintained a favorable route layout, with over 20% of routes in Brazil and North America eastbound, and continued cooperation with major international oil companies[72] - Smaller vessel types expanded global operations, focusing on the US Gulf-Europe transatlantic route while also considering the Mediterranean market[74] Domestic Trade Oil Shipping Business In H1 2025, domestic trade oil shipping revenue decreased by 5.5% year-on-year, and transportation gross profit decreased by 6.9% year-on-year, with gross profit margin declining by 0.4 percentage points, as the Group maintained long-term cooperative relationships with major domestic oil companies and private refineries, actively addressed domestic trade demands from foreign trade customers, and deepened synergy with joint ventures and associates to consolidate market share - Domestic trade oil shipping revenue was RMB 2.74 billion, a 5.5% year-on-year decrease; transportation gross profit was RMB 0.67 billion, a 6.9% year-on-year decrease; gross profit margin was 24.4%, a 0.4 percentage point year-on-year decrease[73] - Continuously maintained long-term cooperative relationships with major domestic oil companies and private refineries to ensure stable basic cargo sources[75] - Deepened synergy with joint ventures and associates, increasing offshore oil transportation share through cargo exchange[75] LNG Shipping Business In H1 2025, the LNG shipping segment contributed RMB 424 million in profit attributable to equity holders of the Company, a 5.7% year-on-year increase, as the Group strictly monitored vessel construction, delivered 2 high-quality LNG carriers, and strengthened crew pool development to enhance independent vessel management capabilities and operational efficiency - The LNG shipping segment contributed RMB 424 million in profit attributable to equity holders of the Company, a 5.7% year-on-year increase[76] - Delivered 2 high-quality LNG carriers and continued to provide safe and efficient transportation services to customers[79] - Strengthened crew pool development, building a high-quality crew team through order-based training and crew transformation[79] LPG Shipping Business In H1 2025, the LPG fleet achieved transportation revenue of RMB 140 million, a 26.5% year-on-year increase; transportation gross profit of RMB 30 million, a 21.3% year-on-year increase; and a gross profit margin of 21.0%, a 0.9 percentage point year-on-year decrease, as the Group deeply cultivated the international VLGC transportation market, actively explored the ethylene and ammonia market, and promoted small triangular route planning to enhance operational efficiency - The LPG fleet's transportation revenue was RMB 140 million, a 26.5% year-on-year increase; transportation gross profit was RMB 30 million, a 21.3% year-on-year increase[77] - Deeply cultivated the international VLGC transportation market across multiple dimensions, engaging with leading international traders, energy giants, and major domestic importers[78] - Actively explored the ethylene and ammonia market, seeking diversified cooperation paths[82] Chemical Shipping Business In H1 2025, the chemical fleet achieved transportation revenue of RMB 160 million, a 13.1% year-on-year decrease; transportation gross profit of RMB 40 million, a 7.0% year-on-year increase; and a gross profit margin of 26.7%, a 5.0 percentage point year-on-year increase, as the Group vigorously expanded new customers, diversified cargo sources and routes, optimized route planning, and increased cooperation with major international customers, actively promoting COA signings - The chemical fleet's transportation revenue was RMB 160 million, a 13.1% year-on-year decrease; transportation gross profit was RMB 40 million, a 7.0% year-on-year increase; gross profit margin was 26.7%, a 5.0 percentage point year-on-year increase[80] - Vigorously expanded new customers for chemical transportation, actively diversifying cargo sources and routes, and optimizing route planning[81] - Increased cooperation with major international customers and traders, and actively promoted multiple COA signings[81] Cost Structure of Principal Activities In H1 2025, the Group's total operating costs for principal activities amounted to RMB 8.910 billion, a 10.9% year-on-year increase, with port charges and vessel charter fees significantly increasing in oil tanker transportation costs, while repair expenses decreased, and LNG transportation costs increased year-on-year due to new project commissioning, leading to higher depreciation, crew, and repair expenses Cost Structure of Principal Activities | Item | H1 2025 (RMB Thousand) | H1 2024 (RMB Thousand) | YoY Change (%) | H1 2025 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Total Oil Tanker Transportation Costs | 8,055,611 | 7,341,999 | 9.7 | 100.0 | | - Fuel costs | 2,604,758 | 2,536,452 | 2.7 | 32.3 | | - Port charges | 519,737 | 369,043 | 40.8 | 6.5 | | - Vessel charter fees | 1,751,291 | 1,212,380 | 44.5 | 21.8 | | - Repair expenses | 82,768 | 179,322 | (53.8) | 1.0 | | Total LNG Transportation Costs | 626,861 | 459,864 | 36.3 | 100.0 | | - Depreciation expenses | 294,346 | 251,621 | 17.0 | 47.0 | | LPG Transportation Costs | 110,800 | 86,625 | 27.9 | 100.0 | | Chemical Transportation Costs | 117,225 | 144,239 | (18.7) | 100.0 | | Total | 8,910,497 | 8,032,727 | 10.9 | - | - In oil tanker transportation costs, port charges and vessel charter fees increased by 40.8% and 44.5% year-on-year, respectively, while repair expenses decreased by 53.8% year-on-year[87] - LNG transportation costs increased by 36.3% year-on-year, primarily due to the commissioning of PetroChina's national projects, leading to increased depreciation, crew, and repair expenses[84] Operating Performance of Joint Ventures and Associates In H1 2025, the Group's two major joint venture and associate shipping companies achieved total operating revenue of approximately RMB 1.823 billion and net profit attributable to parent company of approximately RMB 931 million, a 4.8% year-on-year increase, with the Group recognizing investment income of approximately RMB 633 million, a 3.9% year-on-year increase - The Group's major joint venture and associate shipping companies achieved operating revenue of approximately RMB 1.823 billion and net profit attributable to parent company of approximately RMB 931 million, a 4.8% year-on-year increase[85] - The Group recognized investment income from joint ventures and associates of approximately RMB 633 million, a 3.9% year-on-year increase[85] Operating Performance of Major Joint Ventures and Associates | Company Name | Shareholding Ratio | Transportation Turnover Volume (Billion Ton-Miles) | Operating Revenue (RMB Thousand) | Net Profit Attributable to Parent Company (RMB Thousand) | | :--- | :--- | :--- | :--- | :--- | | CLNG (Joint Venture) | 50% | 38.324 | 574,508 | 501,586 | | Shanghai Beihai Shipping Co., Ltd. (Associate) | 40% | 13.240 | 1,248,658 | 429,000 | Financial Position Analysis The Group's net cash generated from operating activities decreased by 17% year-on-year, with capital commitments primarily for vessel construction and purchase contracts maturing from 2025 to 2028; the net debt-to-equity ratio decreased by 3 percentage points to 75%, mainly due to increased cash and cash equivalents; accounts receivable and contract assets significantly increased, as did accounts payable; the Group holds interest rate swap contracts to hedge cash flow interest rate risk and has both secured and unsecured bank and other interest-bearing loans; contingent liabilities primarily involve performance guarantees for LNG vessel construction and charter contracts; management monitors foreign exchange and interest rate risks Net Cash Generated from Operating Activities During the reporting period, the Group's net cash generated from operating activities was RMB 3.080 billion, a decrease of approximately 17% compared to the prior year Net Cash Generated from Operating Activities | Indicator | H1 2025 (RMB Thousand) | H1 2024 (RMB Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 3,079,612 | 3,692,453 | -17.0% | Capital Commitments As of June 30, 2025, the Group's approved and contracted but unprovided capital commitments for vessel construction and purchase totaled RMB 19.309 billion, an 11.4% increase from the end of 2024, with these commitments maturing from 2025 to 2028 Capital Commitments | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Vessel construction and purchase | 19,308,950 | 17,330,060 | +11.4% | - Capital commitments are due from 2025 to 2028[91] Capital Structure As of June 30, 2025, the Group's net debt-to-equity ratio was 75%, a 3 percentage point decrease from the end of 2024, primarily due to an increase in cash and cash equivalents, which amounted to RMB 7.656 billion, a 35.22% year-on-year increase Capital Structure | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Total debt | 37,451,179 | 36,165,624 | +3.55% | | Less: Cash and cash equivalents | (7,655,589) | (5,661,734) | +35.22% | | Net debt | 29,795,590 | 30,503,890 | -2.32% | | Total equity | 39,804,006 | 38,985,157 | +2.09% | | Net debt-to-equity ratio | 75% | 78% | -3 percentage points | - Cash and cash equivalents balance was RMB 7,655,589 thousand, an increase of RMB 1,993,855 thousand from the end of last year, representing a 35.22% increase[93] Accounts Receivable, Bills Receivable, and Contract Assets As of June 30, 2025, total accounts receivable and bills receivable amounted to RMB 1.284 billion, a significant 110.6% increase from the end of 2024, and total contract assets amounted to RMB 1.275 billion, a 44.3% increase from the end of 2024 Accounts Receivable, Bills Receivable, and Contract Assets | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Total accounts receivable and bills receivable | 1,284,044 | 609,630 | +110.6% | | Total contract assets | 1,275,334 | 883,802 | +44.3% | - Among accounts receivable and bills receivable, the aging within one year accounted for the highest proportion, at RMB 1,274,152 thousand[96] Accounts Payable As of June 30, 2025, total accounts payable amounted to RMB 2.190 billion, a 10.8% increase from the end of 2024, with accounts payable to third parties and accounts payable to fellow subsidiaries being the main components Accounts Payable | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Accounts payable to third parties | 1,327,077 | 1,108,230 | +19.7% | | Accounts payable to fellow subsidiaries | 845,389 | 848,743 | -0.4% | | Total accounts payable | 2,189,940 | 1,977,008 | +10.8% | - Among accounts payable, the aging within one year accounted for the highest proportion, at RMB 2,027,643 thousand[98] Derivative Financial Instruments As of June 30, 2025, the Group held interest rate swap contracts with a total notional principal of approximately USD 651 million, used to hedge cash flow risk from floating-rate bank loans, and both non-current derivative financial instrument assets and liabilities changed - The Group held interest rate swap contracts with a total notional principal of approximately USD 651,049,000, used to hedge cash flow risk from floating-rate bank loans[99] Derivative Financial Instruments | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Total non-current derivative financial instrument assets | 88,108 | 202,052 | | Total non-current derivative financial instrument liabilities | 9,336 | – | Bank and Other Interest-Bearing Loans As of June 30, 2025, the Group's current portion of bank and other interest-bearing loans was RMB 9.212 billion, and the non-current portion was RMB 24.827 billion, with some bank loans secured by vessels, totaling approximately RMB 23.210 billion in net book value of mortgaged vessels Bank and Other Interest-Bearing Loans | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Bank and other interest-bearing loans – current portion | 9,211,815 | 5,483,647 | | Bank and other interest-bearing loans – non-current portion | 24,826,984 | 27,039,085 | - The Group's bank loans are secured by 35 vessels and 6 vessels under construction, with a total net book value of approximately RMB 23.210 billion and RMB 4.465 billion, respectively[105] Contingent Liabilities and Guarantees The Group has various contingent liabilities and guarantees, primarily involving performance guarantees for LNG vessel construction and charter contracts, as well as financial guarantees for bank loans of joint ventures, with significant total guarantee amounts, all having clear guarantee periods and scopes - The Company provides performance guarantees for charter contracts of non-wholly owned subsidiary associates, not exceeding USD 8,200,000[107] - The Company provides performance guarantees for shipbuilding contracts (USD 276,120,000) and charter contracts (USD 6,400,000 and EUR 4,500,000) for wholly-owned subsidiary joint ventures[107] - The Company provides financial guarantees for bank loans of 3 wholly-owned subsidiary joint ventures, with an actual guarantee amount of USD 248,891,000[107] Foreign Exchange Risk Management The Group operates globally and is primarily exposed to foreign exchange risk from USD and HKD against RMB, with management monitoring foreign exchange risk and utilizing forward foreign exchange contracts to hedge part of the risk when necessary - The Group is primarily exposed to foreign exchange risk from USD and HKD against RMB[108] - Management monitors foreign exchange risk and considers utilizing forward foreign exchange contracts for hedging[108] Interest Rate Risk Management The Group's interest rate risk primarily arises from borrowings, with receivables and borrowings bearing floating interest rates, and management monitors capital market conditions and enters into interest rate swap contracts to optimize the ratio of fixed-rate to floating-rate borrowings - The Group's interest rate risk primarily arises from borrowings bearing floating interest rates[109] - Management enters into interest rate swap contracts to achieve an optimal ratio of fixed-rate to floating-rate borrowings[109] Fleet Development In H1 2025, the Group paid approximately RMB 1.465 billion for vessel construction progress payments and vessel purchases; as of June 30, 2025, the Group, its joint ventures, and associates operated a total of 247 vessels and had 57 vessels under construction, covering oil tankers, LNG, LPG, and chemical fleets - In H1 2025, the Group paid approximately RMB 1.465 billion for vessel construction progress payments and vessel purchases[110] Fleet Composition (as of June 30, 2025) | Fleet Type | Operating Vessels (Number) | Operating Vessels (Million DWT/CBM) | Average Age | Vessels Under Construction (Number) | Vessels Under Construction (Million DWT/CBM) | | :--- | :--- | :--- | :--- | :--- | :--- | | Oil Tanker Fleet | 174 | 24.591 | 12.8 | 18 | 2.961 | | LNG Vessel Fleet | 53 | 8.937 | 6.5 | 35 | 6.285 | | LPG Vessel Fleet | 12 | 0.126 | 14.0 | 2 | 0.015 | | Chemical Fleet | 8 | 0.073 | 4.9 | 2 | 0.021 | | Total | 247 | - | - | 57 | - | Outlook and Key Initiatives for the Second Half of 2025 In H2 2025, the oil tanker market supply-demand dynamics are expected to diverge, with VLCCs benefiting from fewer newbuild deliveries and potentially outperforming smaller vessel types in freight rates; LNG supply will continue to grow, supporting trade and seaborne demand, but spot charter rates will have limited upside, and the time charter market will remain relatively stable; LPG and chemical shipping market freight rates are expected to recover; the Group's key initiatives for H2 include improving its global hub network, enhancing core business profitability, optimizing digital supply chain products, adhering to technological innovation and green transformation, leveraging the five-year plan for strategic leadership, and strengthening risk control - In the second half, VLCC vessel types are expected to have a relatively stable fundamental outlook due to limited newbuild deliveries, while smaller vessel types may face freight rate pressure due to newbuild deliveries[115] - Global LNG supply is expected to continue growing, with new liquefaction capacity reaching 37 million tons/year, supporting trade and seaborne demand, but 62 new LNG vessels will enter the market in the second half, limiting upside for spot charter rates[115] - LPG and chemical shipping market freight rates are expected to recover, driven by the traditional peak season and increased scrapping activity[116][117] - Key initiatives for the second half include improving the global hub network, enhancing core business profitability, optimizing digital supply chain products, adhering to technological innovation and green transformation, leveraging the five-year plan for strategic leadership, and strengthening risk control[118][119][120] Industry Supply-Demand Landscape and Development Trends In H2 2025, the international oil shipping market's VLCC segment will continue to benefit from fewer newbuild deliveries, with freight rates potentially outperforming smaller vessels; global oil demand growth will further slow, and OPEC+ production increases are expected to materialize in the second half; domestic crude oil transportation demand may continue structural adjustments; global LNG supply is expected to continue growing, but spot charter rates will have limited upside, and the time charter market will remain relatively stable; LPG and chemical shipping market freight rates are expected to recover, with increased scrapping of older vessels - In the second half, only 5 VLCC newbuilds are expected to be delivered, while approximately 18 Suezmax, 30 Aframax/LR2, and 67 MR vessel types will be delivered, respectively[114] - Global liquefaction capacity is projected to increase by 37 million tons/year in 2025, the largest increase in recent years, but 62 new LNG vessels are expected to enter the market in the second half[115] - The international LPG market is expected to see a 1.4% year-on-year increase in full-year trade volume, with VLGC capacity tightening and freight rates potentially rising further[116] Key Initiatives for the Second Half The Group will focus on its principal activities in the second half, enhancing end-to-end service capabilities by improving its global hub network, and strengthening the profitability of its oil tanker, LNG, LPG, and chemical transportation segments; simultaneously, it will optimize digital supply chain products, accelerate digital transformation, adhere to technological innovation and green and low-carbon transformation, scientifically plan medium-to-long-term green development paths, leverage the five-year plan for strategic leadership, and comprehensively strengthen risk control and hidden danger investigation and rectification - Improve the global hub network, focusing on strengthening cargo integration capabilities and safety assurance systems in key trade hubs such as the Middle East, Singapore, Europe, and America[118] - The oil tanker transportation segment will strengthen efforts in the Mediterranean region and Canadian routes; the LNG transportation segment will continue to track potential high-quality projects and enhance independent operation and vessel management capabilities; the LPG transportation segment will deepen ties with core customers and optimize return cargo matching; the chemical transportation segment will continue to consolidate COA cooperation with core customers[119] - Optimize the digital supply chain collaboration platform, complete the development and launch of the "COSCO Shipping Energy" digital supply chain product, and expand artificial intelligence application scenarios[119] - Actively carry out green and low-carbon and digital intelligence scientific research projects, jointly promote the demonstration and verification of large oil tanker wing sails, and conduct in-vessel demonstration research on ship carbon capture devices[119] - Successfully conclude the "14th Five-Year Plan" and scientifically formulate the "15th Five-Year Plan" for development, clarifying strategic directions and development strategies[119] - Control compliance operating risks, comprehensively ensure production safety, prevent financial management risks, deepen foreign exchange risk management, and strictly adhere to the "risk neutral" principle[120] Other Significant Matters Proposed Issuance of A Shares to Specific Subscribers The Company proposes to issue no more than 1,431,232,918 A shares to no more than 35 specific subscribers, a plan approved by the general meeting of shareholders on April 11, 2025, but still subject to approval by the China Securities Regulatory Commission - The Company proposes to issue no more than 1,431,232,918 A shares to no more than 35 specific subscribers[121] - This issuance plan has been approved by the general meeting of shareholders but is subject to approval by the China Securities Regulatory Commission to become effective[121] Purchase, Sale, and Redemption of the Company's Listed Securities During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and no treasury shares were held at the end of the reporting period - During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities[124] - As of the end of the reporting period, the Company did not hold any treasury shares[124] Compliance with Corporate Governance Code The Company's Board of Directors adheres to corporate governance principles, with the Chairman and CEO roles held by different individuals, and five specialized Board committees established; the Directors believe that the Company has complied with the code provisions set out in Appendix C1 of the Listing Rules during the reporting period - The Company's Board Chairman and Chief Executive Officer are held by different individuals to maintain independence and balanced judgment[125] - The Company has established an Audit Committee, Remuneration and Appraisal Committee, Nomination Committee, Strategy Committee, and Risk and Compliance Management Committee[125] - The Directors believe that the Company has complied with the code provisions set out in Appendix C1 of the Listing Rules during the reporting period[125] Audit Committee The Company's Audit Committee, composed of two independent non-executive directors and one non-executive director, is responsible for reviewing financial reporting procedures and internal controls, and has reviewed this interim results announcement and met with the independent auditor - The Audit Committee is composed of Mr. Huang Weide (Chairman), Mr. Wang Wei, and Mr. Zhao Jinsong[126] - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and this interim results announcement[126] Remuneration and Appraisal Committee The Company's Remuneration and Appraisal Committee, composed of three independent non-executive directors, has adopted relevant provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules - The Remuneration and Appraisal Committee is composed of Mr. Li Runsheng (Chairman), Mr. Huang Weide, and Mr. Wang Zuwen[127] - The Committee has adopted relevant provisions consistent with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[127] Nomination Committee The Company's Nomination Committee, composed of three independent non-executive directors and one non-executive director, is responsible for reviewing the Board structure, identifying suitable director candidates, and assessing the independence of independent non-executive directors - The Nomination Committee is composed of Mr. Wang Zuwen (Chairman), Ms. Zhou Chongyi, Mr. Huang Weide, and Mr. Li Runsheng[128] - The Committee is responsible for reviewing the Board's structure, size, composition, and diversity policy, and identifying individuals with suitable qualifications to serve as directors[128] Strategy Committee The Company's Strategy Committee, composed of two executive directors, three non-executive directors, and two independent non-executive directors, is responsible for deliberating investment projects, acquisition and disposal plans, and evaluating post-investment effects, while also reviewing the Company's overall strategy, sustainable development, environmental, social, and governance strategies, and business development directions - The Strategy Committee is composed of Mr. Ren Yongqiang (Chairman), Mr. Zhu Maijin, Mr. Wang Shuqing, Mr. Wang Wei, Ms. Zhou Chongyi, Mr. Li Runsheng, and Mr. Zhao Jinsong[129] - The Committee is responsible for considering, evaluating, and deliberating investment projects and recommending significant investment plans, acquisition and disposal projects to the Board, and reviewing the Company's overall strategy, sustainable development, environmental, social, and governance strategies, and business development directions[129] Risk and Compliance Management Committee The Company's Risk and Compliance Management Committee, composed of one executive director and two independent non-executive directors, is responsible for deliberating risk control strategies and major risk control solutions, reviewing the effectiveness of risk management, and guiding the promotion of the Company's legal system construction - The Risk and Compliance Management Committee is composed of Mr. Zhao Jinsong (Chairman), Mr. Ren Yongqiang, and Mr. Wang Zuwen[130] - The Committee deliberates risk control strategies and major risk control solutions, reviews the effectiveness of the Company's risk management, and guides the promotion of the Company's legal system construction[130] Compliance with Appendix C3 of the Listing Rules, Model Code for Securities Transactions by Directors of Listed Issuers The Company has adopted the Model Code as the code for directors' securities transactions and confirms that all directors, supervisors, and senior management have complied with its provisions during the reporting period - The Company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code for directors' securities transactions[131] - All directors, supervisors, and senior management have complied with the provisions of the Model Code during the reporting period[131] Employee Information As of June 30, 2025, the Group had a total of 8,218 employees, with employee costs of approximately RMB 1.63 billion during the reporting period; the Company's remuneration policy is linked to operating efficiency, and operating management personnel receive regular training - As of June 30, 2025, the Group had a total of 8,218 employees[132] - During the reporting period, the Group's employee costs were approximately RMB 1.63 billion[132] - The Company's remuneration policy is linked to operating performance and profitability, and operating management personnel receive regular training[132] Profit Distribution Plan for the Current Reporting Period The Company's 2025 Annual General Meeting authorized the Board of Directors to decide on the 2025 interim profit distribution plan; after comprehensive consideration, the Company decided not to implement an interim profit distribution for 2025 - The Company's Annual General Meeting has approved authorizing the Board of Directors to decide on the specific interim profit distribution plan for 2025[133] - After comprehensive consideration, the Company decided not to implement an interim profit distribution for 2025[134] Major Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures During the reporting period, the Group had no major acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no major acquisitions or disposals of subsidiaries, associates, or joint ventures[135] Major Investments and Future Plans for Major Investments and Capital Assets As of June 30, 2025, the Group had not invested in any investee company whose fair value accounted for 5% or more of the Group's total assets, thus there were no major investments during the reporting period, nor any recent plans for major investments and capital assets - As of June 30, 2025, the Group had not invested in any investee company whose fair value accounted for 5% or more of the Group's total assets[136] - During the reporting period, the Group had no major investments, nor any recent plans for major investments and capital assets[136] Events After the Reporting Period After the reporting period, the Company's proposed issuance of A shares to specific subscribers was approved by the Shanghai Stock Exchange and received registration approval from the China Securities Regulatory Commission; the registration for issuing medium-term no