顺丰控股(06936) - 2025 - 中期财报

Company Information Board of Directors and Committees SF Holding disclosed its board composition, including executive and independent non-executive directors, and the formation of audit, nomination, remuneration and appraisal, risk management, and strategy committees - The Board of Directors comprises four executive directors (Wang Wei, He Jie, Wang Xin, Xu Bensong) and three independent non-executive directors (Chen Shangwei, Li Jiashi, Ding Yi)[11] - The company established audit, nomination, remuneration and appraisal, risk management, and strategy committees to support Board operations[11] Registered and Business Address The company maintains registered and principal places of business in mainland China and Hong Kong to support its domestic and international operations - The registered address in China is located on the 3rd floor, Integrated Building, SF South China Transit Center, No 1111 Hangzhan 4th Road, Caowei Community, Hangcheng Street, Bao'an District, Shenzhen, Guangdong Province[11] - The principal place of business in Hong Kong is located on the 9th floor, Asia Logistics Centre – SF Centre, No 36 Shipping Road, Tsing Yi, New Territories, Hong Kong[12] Authorized Representatives and Company Secretaries The company appointed authorized representatives and joint company secretaries to handle matters related to its listing on the Hong Kong Stock Exchange - The authorized representatives are Mr He Jie and Ms Gan Ling[12] - The joint company secretaries are Ms Gan Ling and Ms Su Jiamin[12] Auditors and Legal Advisors The company engaged internationally renowned accounting and law firms as its auditors and legal advisors to ensure financial reporting compliance and professional legal affairs - The auditor is PricewaterhouseCoopers[11] - The legal advisor regarding Hong Kong law is Herbert Smith Freehills[11] Key Accounting Data and Financial Indicators Company Overview and Strategic Positioning SF Holding, as China's and Asia's largest, and the world's fourth-largest integrated logistics service provider, is committed to offering end-to-end one-stop logistics solutions, holding leading positions in multiple niche markets, and leveraging technology to empower smart supply chains, aiming to become a global leader in digital logistics solutions - SF Holding is Asia's largest and the world's fourth-largest integrated logistics service provider, ranking 393rd on the Fortune Global 500 list[13][14] - The company provides domestic and international end-to-end one-stop integrated logistics solutions, including time-definite express, economy express, freight, cold chain and pharmaceutical, intra-city on-demand delivery, supply chain, and international services[14] - The company holds a leading position as number one in domestic express, freight, cold chain, intra-city on-demand delivery, and supply chain businesses, as well as in Asia's express, freight, intra-city on-demand delivery, and international businesses[15][16] Business Segments Introduction SF Holding's business encompasses two major segments: express logistics and supply chain & international, further subdivided into time-definite express, economy express, freight, cold chain & pharmaceutical, intra-city on-demand delivery, international express, international freight & agency, and supply chain, meeting diverse logistics needs of various customer groups - The express logistics segment primarily serves individuals, enterprises, and mid-to-high-end brand merchants, offering time-definite express, economy express, freight, cold chain & pharmaceutical, and intra-city on-demand delivery services[19] - The supply chain and international segment serves domestic and international manufacturing enterprises, trading companies, cross-border e-commerce, and consumers, providing international express, overseas local express, cross-border e-commerce parcels and overseas warehousing services, international freight and agency, and digital supply chain solutions[19] Financial Highlights In H1 2025, SF Holding achieved operating revenue of CNY 146.9 billion, a 9.3% year-on-year increase, with profit attributable to owners of the company reaching CNY 5.74 billion, up 19.4%, basic earnings per share of CNY 1.16/share, and a weighted average return on net assets of 6.07%, demonstrating robust growth in business scale and profitability 2025 Interim Performance Overview (Amounts in CNY) | Indicator | Amount | YoY Change | | :--- | :--- | :--- | | Operating Revenue | CNY 146.9 billion | 9.3% | | EBITDA (1) | CNY 16.6 billion | 4.3% | | Profit attributable to owners of the company | CNY 5.74 billion | 19.4% | | Equity attributable to owners of the company | CNY 95.4 billion | 3.7% | | Basic Earnings Per Share | CNY 1.16/share | 16% | | Cash Dividend Per Share | CNY 0.46/share | 15% | | Weighted Average Return on Net Assets | 6.07% | 0.8 ppts | | Gross Profit | CNY 19.1 billion | 4.1% | | Total Assets | CNY 218.2 billion | 2.1% | Detailed Key Financial Data This section details SF Holding's operating revenue, gross profit, net profit, assets and liabilities, cash flow, and key financial indicators for H1 2025, compared to the same period last year, also noting no difference in net profit and net assets under IFRS and PRC GAAP Total Volume and Total Revenue (H1 2023-H1 2025) | Indicator | 2023H1 | 2024H1 | 2025H1 | YoY Change (2025H1 vs 2024H1) | | :--- | :--- | :--- | :--- | :--- | | Total Volume (Hundred Million Parcels) | 58.8 | 62.4 | 78.5 | +25.7% | | Total Revenue (Billion CNY) | 1,244 | 1,344 | 1,469 | +9.3% | Revenue by Business Segment and Proportion of Total Revenue (2024H1 vs 2025H1) | Business Segment | 2024H1 Revenue (Billion CNY) | 2024H1 Proportion | 2025H1 Revenue (Billion CNY) | 2025H1 Proportion | | :--- | :--- | :--- | :--- | :--- | | Time-definite Express | 59.19 | 44.0% | 63.23 | 43.1% | | Economy Express | 13.25 | 9.9% | 15.16 | 10.3% | | Freight | 17.55 | 13.1% | 19.57 | 13.3% | | Cold Chain and Pharmaceutical | 5.06 | 3.8% | 5.84 | 4.0% | | Intra-city On-demand Delivery | 3.96 | 2.9% | 5.49 | 3.7% | | Supply Chain and International | 31.20 | 23.2% | 34.23 | 23.3% | | Other Non-logistics Businesses | 4.20 | 3.1% | 3.33 | 2.3% | Gross Profit and Profit Attributable to Owners of the Company (H1 2023-H1 2025) | Indicator | 2023H1 | 2024H1 | 2025H1 | | :--- | :--- | :--- | | Gross Profit (Billion CNY) | 18.3 | 19.1 | 16.6 | | Gross Profit Margin | 13.3% | 13.6% | 13.0% | | Profit attributable to owners of the company (Billion CNY) | 4.18 | 4.81 | 5.74 | | Profit margin attributable to owners of the company | 3.4% | 3.6% | 3.9% | Assets, Liabilities, and Equity (2023/12/31-2025/06/30) | Indicator | 2023/12/31 | 2024/12/31 | 2025/06/30 | | :--- | :--- | :--- | | Total Assets (Billion CNY) | 213.8 | 221.5 | 218.2 | | Equity attributable to owners of the company (Billion CNY) | 92.0 | 92.8 | 95.4 | | Asset-Liability Ratio | 53.4% | 52.1% | 51.4% | Net Cash Flow (2024H1 vs 2025H1) | Cash Flow Type | 2024H1 (Billion CNY) | 2025H1 (Billion CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 13.7 | 12.9 | | Net Cash Flow Used in Investing Activities | -15.4 | -17.5 | | Net Cash Flow Used in Financing Activities | -6.2 | -7.3 | Key Financial Indicators (2024H1 vs 2025H1) | Indicator | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY) | 1.16 | 1.00 | 16.00% | | Diluted Earnings Per Share (CNY) | 1.16 | 1.00 | 16.00% | | Weighted Average Return on Net Assets | 6.07% | 5.23% | Increased by 0.84 percentage points | - There is no difference in profit attributable to owners of the company and equity between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[44] Management Discussion and Analysis Overall Review In H1 2025, SF Holding, amidst a complex and volatile domestic and international macroeconomic environment, adhered to its operating theme of "Resilience, Breakthrough, Synergy, and Innovation," achieving steady business growth and increased market share through deepening its "Activate Operations" strategy, lean management, and accelerated industry-specific transformation, while actively expanding into international markets Market Overview In H1 2025, the domestic market, driven by new quality productive forces and consumption policies, saw high-tech manufacturing and integrated online-offline consumption models propel the logistics industry towards efficiency, flexibility, and intelligence. Despite international market uncertainties, strong Asian regional economic resilience and growth in China's foreign trade exports presented opportunities for logistics enterprises' international development - In H1 2025, the added value of industrial enterprises above designated size nationwide increased by 6.4% year-on-year, with high-tech manufacturing increasing by 9.5% and equipment manufacturing by 10.2%[46] - In H1 2025, total retail sales of social consumer goods nationwide increased by 5.0% year-on-year, with online retail sales of physical goods growing by 6.0%, and new formats like instant retail continuing to thrive[47] - In H1 2025, total social logistics costs were CNY 9.2 trillion, a 5.0% year-on-year increase, accounting for 14.0% of GDP, a 0.2 percentage point decrease from the same period last year, indicating achievements in cost reduction and efficiency improvement[48] - In H1 2025, cumulative express delivery volume reached 95.64 billion parcels, a 19.3% year-on-year increase; cumulative express delivery revenue reached CNY 718.78 billion, a 10.1% year-on-year increase[48] - The International Monetary Fund predicts that the growth rate for emerging and developing Asian economies will reach 4.5% in 2025, further strengthening Asia's position in global supply chains[50] - In H1 2025, China's total goods trade imports and exports increased by 2.9% year-on-year, with total exports growing by 7.2%, and the combined exports of "new three items" (new energy vehicles, photovoltaic modules, and lithium batteries) increasing by over 30%[51] - The company adheres to a "sustainable and healthy development" operating philosophy, achieving breakthroughs with a differentiated product strategy, increasing market share, and delivering robust performance[53] - The "Activate Operations" strategy is deeply promoted, optimizing authorization, incentive, reward and punishment, and evaluation mechanisms to stimulate individual initiative and link operating results with personal returns[55] - Upholding a lean operating philosophy, the company continuously optimizes its operating model, leveraging technology to achieve intelligent and unmanned applications across the entire end-to-end logistics chain, driving structural cost reduction[56] - Accelerating industry-specific transformation, shifting from "selling standard products" to "selling solutions," establishing specialized operating departments for key industries, and building industry solution and standardized product portfolio capabilities[58] - Focusing on the "Asia-only, global coverage" strategy, enhancing cross-border fulfillment capabilities by expanding the global air network, upgrading customs clearance, and extending overseas warehousing[60][61] Business Development Summary SF Holding accelerated its industry-specific transformation, achieving over 20% growth in logistics revenue across various sectors such as consumer goods, automotive, industrial equipment, and high-tech communications. Each business segment enhanced service competitiveness, consolidated market leadership through product upgrades, network expansion, and technology empowerment, and actively expanded into international markets, particularly achieving significant growth in cross-border e-commerce logistics - The company deepened its "accelerated industry-specific transformation" strategy, shifting from "selling standard products" to "selling solutions," achieving over 20% year-on-year growth in logistics revenue in consumer goods, automotive, industrial equipment, and high-tech communications sectors[66][59] - Time-definite express business revenue reached CNY 63.23 billion, a 6.8% year-on-year increase, with business volume growing by 18.6%, strengthening high-quality services through products like "Exclusive Same-Day Delivery" and accelerating the expansion of diversified channels[71] - Economy express business revenue reached CNY 15.16 billion, a 14.4% year-on-year increase, with business volume growing by 29.6%, achieving scaled growth through service benchmarks, improved product value-for-money, and upgraded warehousing and distribution integration capabilities[76] - Freight business revenue reached CNY 19.57 billion, a 11.5% year-on-year increase, with cargo volume growing by 28%, building a high-end market barrier for road freight and establishing a less-than-truckload logistics network in the industrial sector[79] - Cold chain and pharmaceutical business revenue reached CNY 5.84 billion, a 15.3% year-on-year increase, driving rapid business growth through refined services in fresh produce delivery, food cold chain, and pharmaceutical logistics[84] - Intra-city on-demand delivery business revenue reached CNY 5.49 billion, a 38.9% year-on-year increase, with order volume growing by over 50%, net profit doubling, active merchants reaching 850,000, and active consumers totaling 24.77 million[89][90] - Supply chain and international business revenue reached CNY 34.23 billion, a 9.7% year-on-year increase, supporting Chinese enterprises' global expansion through an intensified global air network, upgraded customs clearance capabilities, and expanded overseas warehousing, achieving doubled growth in cross-border e-commerce logistics revenue for European routes[95][99] Operational Optimization SF Holding comprehensively optimized operations by building an efficient and intelligent transit network, lean management of transportation links, stimulating revenue generation among frontline couriers, and improving work efficiency. Transit centers achieved intelligent and unmanned operations, transportation links reduced costs and increased efficiency through direct routes and intelligent scheduling, and frontline couriers enhanced service quality and efficiency through team mechanisms and digital tools - In the transit segment, the deployment of ultra-high-speed sorting equipment and AGV unmanned forklifts led to a 12.5% increase in small parcel transit operational efficiency, with per-parcel transit costs continuously decreasing[103][105] - In the transportation segment, optimizing bidding strategies and integrating transport capacity resources resulted in over 6,000 direct trunk lines between cities, and the proportion of round-trip combined trunk lines increased by over 16 percentage points, effectively reducing transportation costs[107][108] - In the last-mile segment, the team mechanism was further promoted, with approximately 16,000 teams formed, covering over 100,000 couriers, leading to a 13.7% year-on-year increase in small parcel collection and delivery efficiency and a 19% increase in large parcel collection and delivery efficiency[109][110] Core Competencies SF Holding's core competencies lie in its efficient and reliable global logistics infrastructure network, leading air cargo capabilities, rich multimodal transport resources, extensive global network layout, cutting-edge logistics technology applications, and unparalleled brand value, which collectively support the company's goal of becoming a respected global leader in digital logistics solutions - The company possesses an efficient and reliable global logistics infrastructure network, covering 339 prefecture-level administrative regions in China (100% coverage), with international express, freight forwarding, and supply chain businesses covering 95 countries and regions[111][112] - It owns China's largest and one of the world's leading cargo airlines, operating 107 all-cargo aircraft, with international cargo throughput at Ezhou Cargo Hub increasing by over 100% compared to H1 2024[114][116] - The company commands rich transportation resources, managing 120,000 trunk and branch line trucks globally, operating 212 international rail lines, and 11,000 sea freight routes[117][118] - Globally, it has 38,000 domestic self-operated and agent outlets and 39,000 overseas self-operated and agent outlets, with global warehouse resources exceeding 12 million square meters[120][121] - The company is committed to becoming a global leader in digital logistics solutions, holding 4,134 effective and pending patents and 2,530 software copyrights, and developing "SF Cognitive Decision Intelligence Agent" and "SF Large Language and Multimodal Model" to empower internal operations and external customers[126][127][128] - The company's brand value is unparalleled, ranking first in public satisfaction for express services for 16 consecutive years, listed in the Fortune Global 500 for 4 consecutive years, and ranking 6th in the 2025 Global Logistics Brand Value list[135][136] Financial Review In H1 2025, SF Holding's total operating revenue reached CNY 146.86 billion, a 9.26% year-on-year increase. Gross profit was CNY 19.06 billion, up 4.08%, with a gross profit margin of 12.98%. Profit attributable to owners of the listed company was CNY 5.74 billion, a 19.37% year-on-year increase. The company effectively controlled expenses through lean management and technology empowerment, maintaining a stable capital structure and ample operating cash flow Operating Revenue by Industry, Operating Segment, and Geographical Region (2025H1 vs 2024H1) | Category | 2025 Amount (Thousand CNY) | 2025 Proportion | 2024 Amount (Thousand CNY) | 2024 Proportion | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 146,858,174 | 100.00% | 134,409,720 | 100.00% | 9.26% | | Logistics and Freight Forwarding | 143,530,874 | 97.73% | 130,207,965 | 96.87% | 10.23% | | Other Non-logistics Businesses | 3,327,300 | 2.27% | 4,201,755 | 3.13% | -20.81% | | Express and Freight Segment | 104,772,845 | 71.34% | 96,820,175 | 72.03% | 8.21% | | Intra-city On-demand Delivery Segment | 5,582,531 | 3.80% | 4,022,952 | 2.99% | 38.77% | | Supply Chain and International Segment | 35,768,179 | 24.36% | 32,914,104 | 24.49% | 8.67% | | Mainland China | 126,936,236 | 86.43% | 115,996,449 | 86.30% | 9.43% | | Hong Kong, Macau, Taiwan | 4,705,646 | 3.20% | 4,512,024 | 3.36% | 4.29% | | Other International | 15,216,292 | 10.36% | 13,901,247 | 10.34% | 9.46% | Gross Profit and Gross Profit Margin (2025H1 vs 2024H1) | Indicator | 2025 Amount (Thousand CNY) | 2025 Gross Profit Margin | 2024 Amount (Thousand CNY) | 2024 Gross Profit Margin | Amount Change | Gross Profit Margin Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Gross Profit | 19,060,542 | 12.98% | 18,313,439 | 13.63% | 4.08% | Decreased by 0.65 percentage points | | Logistics and Freight Forwarding | 18,386,430 | 12.81% | 17,727,103 | 13.61% | 3.72% | Decreased by 0.80 percentage points | | Other Non-logistics Businesses | 674,112 | 20.26% | 586,336 | 13.95% | 14.97% | Increased by 6.31 percentage points | - Staff costs as a percentage of revenue increased by 1.87 percentage points, mainly due to enhanced compensation competitiveness for frontline couriers and increased sales incentives; transport capacity costs as a percentage of revenue decreased by 0.25 percentage points, benefiting from optimized operating models and transport capacity procurement strategies[147][148] Expense Ratio Changes (2025H1 vs 2024H1) | Expense Type | 2025H1 Expense Ratio | 2024H1 Expense Ratio | Change | | :--- | :--- | :--- | :--- | | Sales and Marketing Expense Ratio | 1.20% | 1.09% | Increased by 0.11 percentage points | | Administrative Expense Ratio | 6.21% | 6.73% | Decreased by 0.52 percentage points | | Research and Development Expense Ratio | 0.79% | 0.97% | Decreased by 0.18 percentage points | - Profit attributable to owners of the listed company was CNY 5.74 billion, a 19.4% year-on-year increase; profit margin was 3.9%, an increase of 0.3 percentage points year-on-year[63][156] Segment Net Profit (2025H1 vs 2024H1) | Segment | 2025 (Thousand CNY) | 2024 (Thousand CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Express and Freight Segment | 5,384,678 | 4,795,733 | 12.28% | | Intra-city On-demand Delivery Segment | 137,049 | 62,174 | 120.43% | | Supply Chain and International Segment | -295,907 | -574,213 | 48.47% (Loss Reduction) | | Unallocated Portion | 843,113 | 450,071 | 87.33% | - Excluding the losses from overseas subsidiary KEX and KLN-related financing interest, the comparable net profit of the supply chain and international segment increased by 178% year-on-year[159] Net Cash Flow (2025H1 vs 2024H1) | Cash Flow Type | 2025 (Thousand CNY) | 2024 (Thousand CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 12,936,690 | 13,722,269 | -5.72% | | Net Cash Used in Investing Activities | -17,516,875 | -15,444,553 | -13.42% | | Net Cash Used in Financing Activities | -7,280,764 | -6,181,865 | -17.78% | - As of the end of the reporting period, the company's total assets were CNY 218.2 billion, equity attributable to owners of the listed company was CNY 95.4 billion, and the asset-liability ratio was 51.35%, a 0.79 percentage point decrease from the end of 2024, indicating an overall stable capital structure[65][167] - As of June 30, 2025, total borrowings amounted to CNY 41.53 billion, primarily denominated in RMB, HKD, and USD[169] Restricted Assets (June 30, 2025) | Type of Restricted Asset | Amount (Thousand CNY) | Reason for Restriction | | :--- | :--- | :--- | | Restricted Cash | 940,735 | Primarily statutory reserve deposits with the central bank | | Property, Plant and Equipment | 500,204 | Pledged for bank borrowings | | Right-of-use Assets | 173,923 | Pledged for bank borrowings | | Investment Properties | 117,759 | Pledged for bank borrowings | | Trade and Bills Receivables | 50,259 | Pledged for bank borrowings | | Total | 1,782,880 | | Investment Activities In H1 2025, SF Holding's total investment amounted to CNY 5.401 billion, a 12.46% year-on-year decrease. Capital expenditures were primarily for sorting centers, aircraft, vehicles, and equity investments. The company held a significant amount of financial assets measured at fair value, including structured deposits and equity investments. During the reporting period, the company raised funds through H-share placement and the issuance of convertible bonds to strengthen international logistics capabilities, optimize China's logistics network, and invest in R&D technology Capital Expenditure Details (2025H1) | Item | Amount (Thousand CNY) | | :--- | :--- | | Office Complex | 174,400 | | Land | 213,163 | | Warehouses | 354,293 | | Sorting Centers | 1,176,652 | | Aircraft | 906,985 | | Vehicles | 565,177 | | Information Technology Equipment | 358,727 | | Equity Investments | 1,200,980 | | Others | 450,300 | | Total | 5,400,677 | - As of June 30, 2025, the company's capital commitments amounted to CNY 3.81 billion, primarily representing contractual commitments for the acquisition of property, plant, and equipment for which no provision has yet been made[174] - Financial assets measured at fair value through profit or loss amounted to CNY 27.03 billion, a 140.32% increase from the end of 2024, mainly due to an increase in structured deposits[165][176] Securities Investment (June 30, 2025) | Security Type | Security Name | Carrying Amount at Period End (Thousand CNY) | | :--- | :--- | :--- | | Stocks | J&T Express | 1,009,813 | | Stocks | Zai Lab | 28,775 | | Funds | China Southern Shenzhen International REIT | 61,500 | | Total | | 1,100,088 | - Derivative investments primarily consist of forward foreign exchange contracts for hedging purposes, with an actual loss of approximately CNY 17.372 million during the reporting period, effectively mitigating the impact of exchange rate and interest rate fluctuations on the company's profit[179][180] - Net proceeds from the global offering were approximately CNY 5.30 billion, with 45% allocated to strengthening international and cross-border logistics capabilities, 35% to enhancing and optimizing China's logistics network and services, and 10% to R&D of advanced technologies and digital solutions[182] - During the reporting period, there were no significant investments, acquisitions, or disposals of subsidiaries or equity interests in associates, nor any significant investments or disposals of non-equity assets[183] - As of June 30, 2025, the Group had no significant investment and capital asset plans[184] Corporate Governance and Other Information Corporate Governance Practices SF Holding is committed to formulating and implementing corporate governance practices suitable for its needs, having adopted the principles and code provisions of the Corporate Governance Code, and continuously reviews and monitors its corporate governance practices - The company has adopted the principles and code provisions of the Corporate Governance Code as the benchmark for its corporate governance practices[186] - The company will continue to review and monitor its corporate governance practices to ensure compliance with the Corporate Governance Code[187] Chairman and General Manager Mr Wang Wei serves concurrently as the company's Chairman and General Manager, an arrangement the Board believes is in the Group's best interest, providing stable and consistent leadership and ensuring swift and effective decision-making - Mr Wang Wei serves as the Chairman and General Manager of the company, and the Board believes his concurrent roles are in the best interest of the Group, providing stable and consistent leadership[187] - The company has established appropriate checks and balances through its Board of Directors, including three independent non-executive directors, to ensure a balance of power and authority[187] Standard Code for Securities Transactions The company has adopted a standard code for securities transactions by directors and supervisors and established written guidelines for employee securities transactions no less stringent than the standard code, ensuring compliance - The company has adopted a standard code for securities transactions by directors and supervisors and has made specific inquiries to all directors and supervisors to confirm their compliance[188] - The company has established written guidelines for securities transactions by employees who may possess inside information, with terms no less stringent than the standard code[188] Interim Dividends The Board approved the 2025 interim profit distribution plan, proposing a cash dividend of CNY 4.6 (tax inclusive) per 10 shares to all shareholders, with an estimated total dividend of CNY 2.32 billion, representing approximately 40% of the profit attributable to owners of the company for the first half of the year - The Board of Directors approved the 2025 interim profit distribution plan on August 28, 2025, proposing an interim cash dividend of CNY 4.6 (tax inclusive) per 10 shares to all shareholders[6][189] - The estimated interim cash dividend amount is approximately CNY 2.32 billion, representing approximately 40% of the company's profit attributable to owners of the company for H1 2025[6][189] - The record date for the 2025 interim dividend is September 15, 2025, and H-share dividends will be paid in HKD[191] Shares Issued As of June 30, 2025, the company had a total of 4,992,692,017 ordinary shares issued, comprising 4,822,692,017 A-shares and 170,000,000 H-shares, with new shares issued during the reporting period due to the exercise of stock options Changes in Shares Issued (January 1, 2025 vs June 30, 2025) | Share Type | Number of Shares as of January 1, 2025 | New Shares Issued During Reporting Period | Number of Shares as of June 30, 2025 | | :--- | :--- | :--- | :--- | | A-shares | 4,816,186,983 | 6,505,034 | 4,822,692,017 | | H-shares | 170,000,000 | – | 170,000,000 | | Total | 4,986,186,983 | 6,505,034 | 4,992,692,017 | - During the reporting period, 6,505,034 A-shares were issued due to the exercise of stock options[192] Purchase, Sale, and Redemption of Listed Securities During the reporting period, the company repurchased 2,499,000 A-shares on the Shenzhen Stock Exchange for a total consideration of CNY 101 million, intended for future employee stock ownership plans or share incentive schemes A-share Repurchase in H1 2025 | Repurchase Date | Number of A-shares Repurchased | Highest Price Paid Per Share (CNY) | Lowest Price Paid Per Share (CNY) | Total Consideration (CNY) | | :--- | :--- | :--- | :--- | :--- | | April 7, 2025 | 2,499,000 | 41.20 | 39.33 | 100,975,115.00 | - Save as disclosed above, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Stock Exchange or the Shenzhen Stock Exchange during the reporting period[193] Sufficient Public Float As of June 30, 2025, the number of H-shares held by the public accounted for 3.42% of the total issued share capital (excluding treasury A-shares), meeting the minimum public float requirement of the Stock Exchange - The Stock Exchange granted the company a waiver from strict compliance with the Listing Rules, allowing the minimum percentage of H-shares held by the public to be 3.41% from time to time[194] - As of June 30, 2025, the number of H-shares held by the public accounted for 3.42% of the company's total issued share capital (excluding treasury A-shares), meeting the minimum public float requirement of the Stock Exchange[194] 2022 Stock Option Incentive Plan (A-shares) The company adopted the 2022 Stock Option Incentive Plan, and during the reporting period, some options were vested and exercised by grantees, totaling 6,505,034 options - The company adopted the 2022 Stock Option Incentive Plan, with stock sources being A-shares repurchased by the company and held in a dedicated repurchase securities account and/or A-shares issued to grantees[195] Details of Granted Options Changes (H1 2025) | Category of Grantees | Grant Date | Exercise Price (CNY) | Unexercised as of January 1, 2025 | Exercised During Reporting Period | Cancelled During Reporting Period | Unexercised as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Directors | May 30, 2022 | 40.199 | 875,000 | 0 | 312,000 | 563,000 | | Other Eligible Grantees | May 30, 2022 & October 28, 2022 | 40.199 | 26,420,395 | 6,505,034 | 2,827,840 | 17,087,521 | | Total | | | 27,295,395 | 6,505,034 | 3,139,840 | 17,650,521 | Major Shareholders' Interests and Short Positions in the Company's Shares and Related Shares As of June 30, 2025, Mr Wang Wei, through Mindong Holdings, held A-shares of the company, making him the largest shareholder. Additionally, institutional investors such as Morgan Stanley, Kenneth Cordele Griffin, and JPMorgan Chase & Co. held long and short positions in H-shares - Mr Wang Wei held a long position of 2,661,927,139 A-shares through Mindong Holdings, representing approximately 55.20% of the A-share equity and approximately 53.32% of the total issued shares[199][203] - Morgan Stanley held a long position of 19,156,539 H-shares and a short position of 8,773,771 H-shares[199][203] - JPMorgan Chase & Co held a long position of 13,243,447 H-shares and a short position of 6,415,463 H-shares[199][203] Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company and its Associated Corporations As of June 30, 2025, Mr Wang Wei held equity interests in the company's A-shares and associated corporations SF City-wide and KLN. Other executive directors He Jie, Wang Xin, Xu Bensong, and independent non-executive director Li Jiashi also held A-shares of the company - Mr Wang Wei held 2,661,927,139 A-shares through controlled corporations, representing approximately 55.20% of the A-share equity[205][206] - Mr Wang Wei held 364,738,662 H-shares (48.92%) and 171,764,898 unlisted domestic shares (100%) in associated corporation SF City-wide, and 931,209,117 H-shares (51.52%) in KLN[207][210] Directors' and Chief Executives' Interests in the Company's Shares (June 30, 2025) | Name | Share Class | Nature of Interest | Number of Shares Held | Approximate Percentage of Equity in Relevant Class of Shares | | :--- | :--- | :--- | :--- | :--- | | He Jie | A-shares | Beneficial Owner | 366,000 | 0.01% | | Wang Xin | A-shares | Beneficial Owner | 355,000 | 0.01% | | Xu Bensong | A-shares | Beneficial Owner | 190,200 | 0.004% | | Li Jiashi | A-shares | Beneficial Owner | 38,000 | 0.001% | Employees The company upholds a people-oriented culture, committed to creating a fair, just, and open environment for employees, providing training and career development opportunities, and attracting and retaining talent with market-competitive compensation policies. As of June 30, 2025, the Group had 148,200 full-time employees globally - The company is committed to creating a fair, just, and open environment for employees, aiming to build the SF brand into a platform for outstanding global talent to achieve their dreams[209] - The Group's adopted compensation policy considers market benchmarks, individual performance, and the company's overall financial performance to ensure a market-competitive compensation system[209] - As of June 30, 2025, the Group had 148,200 full-time employees globally[209] Audit Committee and Review of Interim Financial Information The Audit Committee, composed of all independent non-executive directors, has reviewed the Group's interim results and financial information for the six months ended June 30, 2025, and discussed accounting policies and internal control matters with management and the auditors - The Audit Committee comprises Mr Chen Shangwei (Chairman), Mr Li Jiashi, and Dr Ding Yi, all independent non-executive directors[212] - The Audit Committee has reviewed the Group's interim results and interim financial information for the six months ended June 30, 2025, and discussed accounting policies and internal control matters[212] Changes in Information of Directors and Supervisors During the reporting period, there were no changes in the information of the company's directors and supervisors that require disclosure under Rule 13.51(B)(1) of the Listing Rules of the Stock Exchange - During the reporting period, there were no changes in the information of the company's directors and supervisors that require disclosure under Rule 13.51(B)(1) of the Listing Rules of the Stock Exchange[213] Continuing Disclosure Obligations under the Listing Rules As of the end of the reporting period, the company had no disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules of the Stock Exchange - As of the end of the reporting period, the company had no disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules of the Stock Exchange[214] Material Events After the Reporting Period After the reporting period, the company completed an H-share placement in July 2025, raising HKD 2.951 billion, and issued zero-coupon guaranteed convertible bonds with a principal amount of HKD 2.950 billion, further strengthening its capital position - On July 4, 2025, the company completed the allotment and issuance of 70,000,000 new H-shares at a placement price of HKD 42.15 per share, with total proceeds of HKD 2,950.5 million[215][331] - On July 10, 2025, the company's subsidiary, SF Holding Investment 2023 Limited, issued zero-coupon guaranteed convertible bonds with a principal amount of HKD 2,950 million, with an initial conversion price of HKD 48.47 per H-share[215][332] - On August 7, 2025, the company completed the cancellation procedures for 23,270,358 repurchased A-shares[333] Interim Financial Information Review Report Interim Financial Information Review Report PricewaterhouseCoopers has reviewed SF Holding's interim financial information for the six months ended June 30, 2025, and concluded, based on International Standard on Review Engagements 2410, that nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting" - PricewaterhouseCoopers has reviewed the interim financial information of SF Holding and its subsidiaries for the six months ended June 30, 2025[217] - The review was conducted in accordance with International Standard on Review Engagements 2410, with a scope smaller than an audit, thus no audit opinion is expressed[218] - Based on the review, nothing has come to attention that causes the interim financial information not to be prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting"[219] Condensed Consolidated Statement of Profit or Loss In H1 2025, SF Holding achieved revenue of CNY 146,858,174 thousand, a 9.26% year-on-year increase. Gross profit was CNY 19,060,542 thousand, up 4.08%. Profit for the period was CNY 6,012,403 thousand, a 26.29% year-on-year increase, of which profit attributable to owners of the company was CNY 5,737,699 thousand, up 19.37% Condensed Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30, 2025) | Item | 2025 (Thousand CNY) | 2024 (Thousand CNY) | | :--- | :--- | :--- | | Revenue | 146,858,174 | 134,409,720 | | Cost of Sales | (127,797,632) | (116,096,281) | | Gross Profit | 19,060,542 | 18,313,439 | | Selling and Marketing Expenses | (1,762,136) | (1,470,892) | | Administrative Expenses | (9,120,144) | (9,049,272) | | Research and Development Expenses | (1,153,311) | (1,301,455) | | Operating Profit | 8,449,349 | 7,198,491 | | Net Finance Costs | (773,324) | (815,854) | | Income Tax Expense | (1,627,325) | (1,559,135) | | Profit for the Period | 6,012,403 | 4,760,922 | | Attributable to Owners of the Company | 5,737,699 | 4,806,714 | | Basic Earnings Per Share (CNY) | 1.16 | 1.00 | Condensed Consolidated Statement of Comprehensive Income In H1 2025, SF Holding's profit for the period was CNY 6,012,403 thousand. Net other comprehensive income was CNY 355,375 thousand, mainly affected by currency translation differences of overseas operations and fair value changes of equity investments. Total comprehensive income for the period was CNY 6,367,778 thousand, of which CNY 5,617,090 thousand was attributable to owners of the company Condensed Consolidated Statement of Comprehensive Income Key Data (For the six months ended June 30, 2025) | Item | 2025 (Thousand CNY) | 2024 (Thousand CNY) | | :--- | :--- | :--- | | Profit for the Period | 6,012,403 | 4,760,922 | | Other Comprehensive Income, Net of Tax | 355,375 | (1,459,677) | | Total Comprehensive Income for the Period | 6,367,778 | 3,301,245 | | Attributable to Owners of the Company | 5,617,090 | 3,746,395 | | Attributable to Non-controlling Interests | 750,688 | (445,150) | - Other comprehensive income in H1 2025 primarily included currency translation differences of overseas operations of CNY 274,856 thousand and fair value changes of equity investments designated as fair value through other comprehensive income of CNY 168,278 thousand[223] Condensed Consolidated Statement of Financial Position As of June 30, 2025, SF Holding's total assets reached CNY 218,236,503 thousand, a 2.06% increase from the end of 2024. Total liabilities were CNY 112,071,266 thousand, total equity was CNY 106,165,237 thousand, equity attributable to owners of the company was CNY 95,399,730 thousand, and the asset-liability ratio was 51.35%, maintaining a stable capital structure Condensed Consolidated Statement of Financial Position Key Data (As of June 30, 2025) | Item | June 30, 2025 (Thousand CNY) | December 31, 2024 (Thousand CNY) | | :--- | :--- | :--- | | Total Assets | 218,236,503 | 213,824,213 | | Total Liabilities | 112,071,266 | 111,488,992 | | Total Equity | 106,165,237 | 102,335,221 | | Equity attributable to owners of the company | 95,399,730 | 91,993,286 | | Share Capital | 4,992,692 | 4,986,187 | | Retained Earnings | 42,707,381 | 39,140,246 | - As of June 30, 2025, the asset-liability ratio was 51.35%, a 0.79 percentage point decrease from 52.14% at the end of 2024, indicating an overall stable capital structure[43][225] - Financial assets measured at fair value through profit or loss amounted to CNY 27,026,920 thousand, a 140.32% increase from the end of 2024, mainly due to an increase in structured deposits[165][225] - Cash and cash equivalents amounted to CNY 20,742,661 thousand, a 36.46% decrease from the end of 2024[225] Condensed Consolidated Statement of Changes in Equity In H1 2025, equity attributable to owners of the company increased from CNY 91,993,286 thousand at the beginning of the period to CNY 95,399,730 thousand at the end, primarily driven by profit for the period, proceeds from stock option exercises, and appropriations for safety production expenses Condensed Consolidated Statement of Changes in Equity Key Data (For the six months ended June 30, 2025) | Item | Total Attributable to Owners of the Company (Thousand CNY) | Non-controlling Interests (Thousand CNY) | Total Equity (Thousand CNY) | | :--- | :--- | :--- | :--- | | January 1, 2025 | 91,993,286 | 10,341,935 | 102,335,221 | | Profit for the Period | 5,737,699 | 274,704 | 6,012,403 | | Other Comprehensive Income | (120,609) | 475,984 | 355,375 | | Total Comprehensive Income | 5,617,090 | 750,688 | 6,367,778 | | Net Proceeds from Exercise of Stock Options | 261,498 | – | 261,498 | | Share Repurchase | (100,984) | – | (100,984) | | Dividends | (2,186,424) | (160,714) | (2,347,138) | | June 30, 2025 | 95,399,730 | 10,765,507 | 106,165,237 | Condensed Consolidated Statement of Cash Flows In H1 2025, SF Holding's net cash generated from operating activities was CNY 12,936,690 thousand, a 5.72% year-on-year decrease. Net cash used in investing activities was an outflow of CNY 17,516,875 thousand, and net cash used in financing activities was an outflow of CNY 7,280,764 thousand. Cash and cash equivalents at period-end amounted to CNY 20,742,661 thousand Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30, 2025) | Item | 2025 (Thousand CNY) | 2024 (Thousand CNY) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 12,936,690 | 13,722,269 | | Net Cash Used in Investing Activities | -17,516,875 | -15,444,553 | | Net Cash Used in Financing Activities | -7,280,764 | -6,181,865 | | Net Decrease in Cash and Cash Equivalents | -11,860,949 | -7,904,149 | | Cash and Cash Equivalents at Period End | 20,742,661 | 32,515,989 | - The increase in net cash outflow from investing activities was primarily due to a net increase in cash outflow from structured deposits, an increase in cash inflow from disposal of subsidiaries, and a net decrease in cash outflow from purchases of property, plant, and equipment, among other comprehensive effects[161] - The increase in net cash outflow from financing activities was primarily due to a net increase in borrowings, a decrease in share repurchases, and a decrease in acquisition of non-controlling interests, among other comprehensive effects[162] Notes to the Condensed Consolidated Financial Statements General Information SF Holding was incorporated in China, with its A-shares and H-shares listed, primarily engaged in logistics ecosystem businesses including express delivery, freight, cold chain and pharmaceutical logistics, intra-city on-demand delivery, international logistics services, and supply chain solutions - SF Holding was incorporated in China in 2003, and its shares are listed on the Shenzhen Stock Exchange and The Stock Exchange of Hong Kong Limited[236] - The company and its subsidiaries are primarily engaged in developing a logistics ecosystem encompassing express delivery, freight, cold chain and pharmaceutical logistics, intra-city on-demand delivery, international logistics services, and supply chain solutions[236] - As of June 30, 2025, the total number of issued and outstanding shares was 4,992,692,017, comprising 4,822,692,017 A-shares and 170,000,000 H-shares[236] Basis of Preparation and Accounting Policies The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the disclosure requirements of the Hong Kong Listing Rules, with accounting policies consistent with the 2024 annual financial statements, and the first-time application of IFRS 1 and IAS 21 (Amendments) "Lack of Exchangeability" - The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the disclosure requirements of the Hong Kong Listing Rules[238] - The accounting policies adopted in the preparation of this condensed consolidated interim financial information are consistent with those applied in the annual financial statements for the year ended December 31, 2024[238] - The first-time application of IFRS 1 and IAS 21 (Amendments) "Lack of Exchangeability" during this interim period had no material impact on the Group's accounting policies[239] Financial Risk Management The Group's operations are exposed to market risks (including foreign exchange risk, price risk, and interest rate risk), credit risk, and liquidity risk, which are managed by the Board and senior management. This section also details the fair value measurement and sensitivity analysis of financial instruments recognized at fair value - The Group's operations are exposed to market risks (including foreign exchange risk, price risk, and interest rate risk), credit risk, and liquidity risk[243] - Risk management is carried out by the Group's Board and senior management, and there have been no changes in the financial risk management structure and policies since the year-end[243] Financial Assets Measured at Fair Value (June 30, 2025) | Item | Level 1 (Thousand CNY) | Level 2 (Thousand CNY) | Level 3 (Thousand CNY) | Total (Thousand CNY) | | :--- | :--- | :--- | :--- | :--- | | Non-current: | | | | | | Financial assets at fair value through profit or loss | – | – | 505,009 | 505,009 | | Financial assets at fair value through other comprehensive income | 1,100,088 | – | 7,052,225 | 8,152,313 | | Current: | | | | | | Financial assets at fair value through profit or loss | 79 | 15,461 | 26,928,678 | 27,026,920 | | Financial assets at fair value through other comprehensive income | – | 165,187 | – | 165,187 | - An increase/decrease of 10% in the expected return rate of structured deposits measured at Level 3 fair value would result in an increase/decrease of 0.03% to 0.04% in fair value[248] Revenue and Segment Information The Group's operating segments include express and freight, intra-city on-demand delivery, and supply chain & international businesses, with key operating decision-makers allocating resources and assessing performance by reviewing internal reports. In H1 2025, total revenue from external customers was CNY 146,858,174 thousand, with logistics and freight forwarding services accounting for the vast majority - The Group's operating segments include the express and freight business segment, the intra-city on-demand delivery business segment, and the supply chain and international business segment[253] Business Segment Revenue and Net Profit (Loss) (For the six months ended June 30, 2025) | Segment | Revenue from External Customers (Thousand CNY) | Net Profit (Loss) (Thousand CNY) | | :--- | :--- | :--- | | Express and Freight Business Segment | 104,772,845 | 5,384,678 | | Supply Chain and International Business Segment | 35,768,179 | (295,907) | | Intra-city On-demand Delivery Business Segment | 5,582,531 | 137,049 | | Unallocated Portion | 734,619 | 843,113 | | Total | 146,858,174 | 6,012,403 | Revenue by Timing of Performance Obligation (For the six months ended June 30, 2025) | Revenue Type | Logistics and Freight Forwarding Services (Thousand CNY) | Sale of Goods (Thousand CNY) | Other (Thousand CNY) | Total (Thousand CNY) | | :--- | :--- | :--- | :--- | :--- | | Recognized at a point in time | – | 2,361,627 | 259,362 | 2,620,989 | | Recognized over time | 143,530,874 | – | 255,439 | 143,786,313 | | Lease Income | – | – | 189,652 | 189,652 | | Total | 143,530,874 | 2,361,627 | 965,673 | 146,858,174 | Other Income In H1 2025, the Group's total other income amounted to CNY 485,428 thousand, primarily from government grants, followed by other income and dividend income Other Income Components (For the six months ended June 30, 2025) | Item | 2025 (Thousand CNY) | 2024 (Thousand CNY) | | :--- | :--- | :--- | | Government Grants | 317,688 | 404,911 | | Dividend Income | 1,360 | 426 | | Other | 166,380 | 167,413 | | Total | 485,428 | 572,750 | - Government grants primarily consist of awards and tax incentives provided by local government authorities in China, with no unfulfilled conditions or contingencies during the reporting period[261] Net Other Gains In H1 2025, the Group's net other gains amounted to CNY 821,866 thousand, primarily benefiting from gains on disposal of investments in subsidiaries and fair value changes of financial assets measured at fair value through profit or loss Net Other Gains Components (For the six months ended June 30, 2025) | Item | 2025 (Thousand CNY) | 2024 (Thousand CNY) | | :--- | :--- | :--- | | Gains on Disposal of Investments in Subsidiaries | 777,717 | 91,950 | | Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss | 293,339 | 238,687 | | Gains on Repurchase of Corporate Bonds | 65,199 | 55,982 | | Net Exchange (Loss)/Gain | (125,935) | 4,703 | | Total | 821,866 | 293,793 | Expenses by Nature In H1 2025, the Group's total expenses, including cost of sales, selling and marketing expenses, administrative expenses, and research and development expenses, amounted to CNY 139,833,223 thousand, with outsourced labor costs, transportation expenses, and employee benefits being the main components Expenses by Nature (For the six months ended June 30, 2025) | Item | 2025 (Thousand CNY) | 2024 (Thousand CNY) | | :--- | :--- | :--- | | Outsourced Labor Costs | 54,280,302 | 46,426,202 | | Transportation Expenses | 26,171,863 | 24,040,343 | | Outsourced Transportation Costs | 20,602,909 | 18,725,511 | | Employee Benefits Expenses | 16,751,576 | 16,170,240 | | Depreciation and Amortization (excluding right-of-use assets) | 4,860,146 | 5,360,734 | | Rent and Site Usage Fees | 3,816,529 | 3,599,946 | | Depreciation of Right-of-use Assets | 3,337,161 | 3,428,916 | | Other | 10,012,737 | 10,166,008 | | Total | 139,833,223 | 127,917,900 | - For the six months ended June 30, 2025, government grants of approximately CNY 612,658,000 were recognized as a deduction from cost of sales[263] Finance Income and Expenses In H1 2025, the Group's finance income primarily consisted of interest income from deposits with financial institutions of CNY 155,037 thousand. Total finance expenses amounted to CNY 928,361 thousand, mainly comprising interest expenses on borrowings and lease liabilities, resulting in net finance costs of CNY 773,324 thousand Finance Income and Expenses (For the six months ended June 30, 2025) | Item | 2025 (Thousand CNY) | 2024 (Thousand CNY) | | :--- | :--- | :--- | | Finance Income: | | | | 　Interest income from deposits with financial institutions | 155,037 | 415,064 | | Finance Expenses: | | | | 　Interest expenses on borrowings | 695,519 | 997,654 | | 　Interest expenses on lease liabilities | 243,551 | 262,301 | | 　Less: Capitalized interest | (10,709) | (29,037) | | Net Finance Costs | 773,324 | 815,854 | Income Tax Expense In H1 2025, the Group's income tax expense was CNY 1,627,325 thousand, primarily composed of current income tax and deferred income tax. The company calculates income tax based on applicable tax rates and preferential tax rates in different jurisdictions and has assessed that the OECD Pillar Two Model Rules have no material quantitative impact on the Group Income Tax Expense Components (For the six months ended June 30, 2025) | Item | 2025 (Thousand CNY) | 2024 (Thousand CNY) | | :--- | :--- | :--- | | Current Income Tax | 1,659,277 | 1,421,021 | | Deferred Income Tax | (31,952) | 138,114 | | Total | 1,627,325 | 1,559,135 | - The applicable income tax rate for major subsidiaries in China is 25%, Hong Kong profits tax is accrued at 8.25% or 16.5%, and overseas profit income tax is calculated based on local tax rates[268][269][270] - The Group has assessed that the OECD Pillar Two Model Rules have no material quantitative impact on the Group[271] Dividends The interim dividend of CNY 0.46 per ordinary share (tax inclusive) for the six months ended June 30, 2025, was approved by the directors on August 28, 2025, and has not yet been recognized as a liability - The interim dividend of CNY 0.46 per ordinary share (tax inclusive) for the six months ended June 30, 2025, was approved by the directors on August 28, 2025[272] - This dividend had not been recognized as a liability as of June 30, 2025[272] Property, Plant and Equipment As of June 30, 2025, the Group's property, plant and equipment had a net carrying amount of CNY 55,891,747 thousand. During the reporting period, additions amounted to CNY 3,481,081 thousand, disposals were CNY 1,224,943 thousand, and depreciation charged was CNY 4,025,376 thousand Net Carrying Amount of Property, Plant and Equipment (As of June 30, 2025) | Item | Net Carrying Amount (Thousand CNY) | | :--- | :--- | | Freehold Land and Buildings | 25,742,065 | | Aircraft, Aircraft Engines, Rotables, and High-Value Maintenance | 9,812,991 | | Machinery and Equipment | 9,893,298 | | Transportation Vehicles | 2,234,533 | | Computers and Electronic Equipment | 1,208,686 | | Office and Other Equipment | 2,439,020 | | Leasehold Improvements | 1,938,833 | | Construction in Progress | 2,622,321 | | Total | 55,891,747 | - As of June 30, 2025, certain property, plant and equipment with a net carrying amount of approximately CNY 500,204,000 were pledged as collateral for bank loan financing and bank overdrafts[274] Leases As of June 30, 2025, the Group's total right-of-use assets amounted to CNY 21,376,908 thousand, and total lease liabilities amounted to CNY 15,034,295 thousand. During the reporting period, additions to right-of-use assets were approximately CNY 6,006,348 thousand, and depreciation expense of CNY 3,337,161 thousand was recognized Right-of-Use Assets and Lease Liabilities (As of June 30, 2025) | Item | June 30, 2025 (Thousand CNY) | December 31, 2024 (Thousand CNY) | | :--- | :--- | :--- | | Total Right-of-Use Assets | 21,376,908 | 19,625,629 | | Total Lease Liabilities | 15,034,295 | 12,595,797 | | 　Of which: Current | 5,442,703 | 5,501,314 | | 　Of which: Non-current | 9,591,592 | 7,094,483 | - During the six months ended June 30, 2025, additions to right-of-use assets amounted to approximately CNY 6,006,348,000[277] - As of June 30, 2025, leasehold land and land use rights with a net carrying amount of approximately CNY 173,923,000 were pledged as collateral for bank loan financing and bank overdrafts[278] Lease-Related Expenses (For the six months ended June 30, 2025) | Item | 2025 (Thousand CNY) | 2024 (Thousand CNY) | | :--- | :--- | :--- | | Total Depreciation Expense of Right-of-Use Assets | 3,337,161 | 3,428,916 | | Interest Expense | 243,551 | 262,301 | | Expenses Related to Short-term Leases and Low-value Assets | 2,108,487 | 1,885,251 | | Total Cash Outflow for Leases | 5,788,850 | 5,703,150 | Investment Properties As of June 30, 2025, the Group's investment properties had a net carrying amount of CNY 7,547,509 thousand. During the reporting period, disposals of subsidiaries resulted in a cost reduction of CNY 254,536 thousand, and CNY 731,776 thousand was transferred/reclassified Net Carrying Amount of Investment Properties (As of June 30, 2025) | Item | June 30, 2025 (Thousand CNY) | | :--- | :--- | | Cost at Period End | 8,317,901 | | Accumulated Depreciation at Period End | 770,392 | | Net Carrying Amount at Period End | 7,547,509 | - As of June 30, 2025, certain investment properties with a net carrying amount of approximately CNY 117,759,000 were pledged as collateral for bank loan financing and bank overdrafts[281] Minimum Lease Payments Receivable for Investment Properties (As of June 30, 2025)