Group 1: Market Analysis of Container Shipping - The peak of the peak - season freight rate has passed. Mainstream shipping companies have successively lowered their spot quotes for August, causing the EC futures market to fluctuate weakly. On July 29, EC2510 closed at 1460 points, down 2.85% from the previous day's close. The latest SCFIS European Line index released after Monday's trading was 2316.56 points, down 3.5% month - on - month, indicating a decline in spot freight rates [4]. - Spot freight rates show a divergence in quotes among mainstream shipping companies. Most shipping companies except MSC have either maintained or lowered their freight rates for the first half of August. The demand side is affected by tariff policies during the traditional peak season from July to August. The supply side shows that the average weekly capacity in July, August, and September 2025 is 264,200, 289,900, and 296,600 TEU respectively, with a slight decline in July and September compared to the previous week's schedule. The ship schedule in September is still abundant [5]. - Regarding tariffs, Trump extended the tariff exemption period to August 1st. The US has finalized tariffs of about 19 - 20% on Vietnam, Indonesia, and the Philippines, and 15% on the EU and Japan. The Sino - US negotiation has been extended for 90 days, and the cease - fire negotiation in the Israel - Palestine conflict is in progress [5]. Group 2: Trading Strategies for Container Shipping - Unilateral trading: It is expected that the futures market will remain weak. This week, the market is expected to be disturbed by macro - events such as tariff negotiations. For EC2510, some short positions can be closed for profit and some can be rolled over. The overall strategy is to short on rallies [6]. - Arbitrage: Conduct rolling operations on the 10 - 12 reverse spread [7]. Group 3: Industry News for Container Shipping - The US Secretary of Commerce said that the EU will pay a 15% tariff, with a few small commodities excluded. Trump will consider several agreements this week and then determine the tax rates [8]. - Trump said that the US will announce tariffs on drugs in the near future, and global tariffs will be around 15 - 20% [10]. - Trump expressed disappointment with Putin and is considering giving Russia less than two weeks to reach a cease - fire agreement [11]. - The Canadian Prime Minister claimed that the trade negotiation with the US is in a tense stage [12]. - A Dutch bank analyst said that it is unrealistic for the EU to purchase $750 billion worth of US energy products in three years without a significant increase in energy prices [12]. - Netanyahu said that Israel will continue to fight until the hostages are released and Hamas is defeated, and will cooperate with international institutions and the US and European countries to ensure the entry of a large amount of aid supplies into the Gaza Strip [13]. - The Iranian Foreign Minister said that if the aggression occurs again, Iran will respond more resolutely [13]. - Two senior assistants of Netanyahu went to the US on Sunday and will hold talks with White House officials on Iran and Gaza issues this week [13]. Group 4: Market Analysis of Dry Bulk Shipping - The Baltic Dry Index (BDI) fell on Monday due to the decline in freight rates of all ship types. The BDI dropped 31 points, or 1.37%, to 2226 points. The Capesize Index fell 55 points or 1.4% to 3774 points, and the Panamax Index dropped 40 points, or 2.2%, to 1798 points, the lowest since July 10th [16]. - On July 28, the freight rate of the Capesize iron ore route from Tubarao, Brazil to Qingdao was $24.59/ton, down 0.65% month - on - month, and the rate from Western Australia to Qingdao was $10.25/ton, down 0.34% month - on - month. As of July 25, the weekly freight rates of some Capesize coal and bauxite routes increased, while some Panamax coal routes decreased [17]. - From July 21st to July 27th, 2025, the total global iron ore shipments were 32.009 million tons, a month - on - month increase of 918,000 tons. In the fourth week of July 2025, a total of 10.4472 million tons of soybeans were loaded, with an average daily loading volume of 549,900 tons/day, a 12.41% increase compared to July last year [18]. - The Capesize ship market had few inquiries on the previous day, and the overall market was calm at the beginning of the week, with freight rates falling slightly. The demand for grain transportation in the Panamax ship market weakened, and although there were some coal cargoes released, the market capacity increased, resulting in a slight decline in freight rates [19]. Group 5: Industry News for Dry Bulk Shipping - Typhoon "Bamboo Grass" is expected to move northwest at a speed of 10 - 15 km/h, gradually intensify, and make landfall on the coast from Sanmen, Zhejiang to Qidong, Jiangsu between noon and evening on the 30th [20]. - China - US economic and trade teams held talks in Stockholm on July 28th. Trump said that the US is very close to reaching an agreement with China [21]. - The total inventory of imported iron ore at 47 ports in China was 142.8173 million tons, a week - on - week decrease of 1.0683 million tons. The total inventory of iron ore at seven major ports in Australia and Brazil was 13.549 million tons, a week - on - week decrease of 696,000 tons [21]. Group 6: Related Attachments - The report provides multiple graphs, including those related to container shipping such as SCFIS European and US - West lines, SCFI comprehensive index, and container freight rates of different routes; and those related to dry bulk shipping such as BDI, BPI, BCI, and BSI indices, as well as BDTI and BCTI [22][26][35][38][39].

1. Report Industry Investment Rating No relevant information provided. 2. Core View of the Report - The shipping industry, especially the European line, shows a complex market situation. In August, the shipping capacity is relatively high, with an average weekly capacity of 320,000 TEU, a month - on - month increase of 8%. However, the bottom - loading cargo in early August still provides support, and the market may remain stable or experience a slight decline in the quotes of some shipping companies in the next half - month [2][30]. 3. Summary by Related Catalogs EC Futures Contracts - EC2508 closed at 2468.7 with a 4.28% increase, EC2510 at 1676.4 with a 1.93% increase, EC2512 at 1860.4 with a 1.90% increase, EC2602 at 1513.9 with a 0.62% increase, EC2604 at 1370.2 with a 1.51% increase, and EC2606 at 1465.7 with a 0.77% increase [2][30]. - Regarding the month - spreads, EC2508 - 2510 was 69.7 (previous day: 792.3), EC2510 - 2512 was - 3.0 (previous day: - 184.0), and EC2512 - 2602 was 25.3 (previous day: 346.5) [2][30]. Indexes - The current spot price was 2400.5 on 2025/7/21, a - 0.89% change from the previous period [2][30]. - SCFI (European line) was 2079 USD/TEU on 2025/7/18, a - 0.95% change from the previous period [2][30]. - CCFI (European line) was 1803.42 on 2025/7/18, a 4.46% increase from the previous period [2][30]. - NCFI was 1440.25 on 2025/7/18, a 0.35% increase from the previous period [2][30]. - TCI was 1054.56 on 2025/7/18, a - 0.7/5% change from the previous period [2][30]. European Line Quotations - Downstream is currently booking spaces for early August (week 30 - 31). The prices in July remained stable, around 2400 points. In the fifth week of July (week 31), the quote was 3400 USD, which was still around 2400 points on the futures market [3][31]. - In August, some shipping companies announced price adjustments: EMC increased by 100, CMA by 400, HPL by 200, MSC by 200. MSK (Shanghai - Rotterdam) decreased by 100 to 2900 USD, and MSK (Shanghai - Antwerp) remained stable at 2900 USD [3][31]. Seasonal Trends - Multiple charts show the seasonal trends of various shipping indexes, including SCFIS (European line), TCI (European line, Mediterranean East, US West, South American West, Persian Gulf, South Africa, West Africa, Mediterranean West, US East, East Africa), NCFI (European line), and XSI - C (European line) [12][19][40].

Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 6.60 and a sector rating of "Outperform" [1][3]. Core Views - The company reported a significant increase in its H1 2025 performance, with operating revenue reaching RMB 10.775 billion, a year-on-year increase of 44.05%. The net profit attributable to the parent company was RMB 825 million, up 13.08%, while the net profit excluding non-recurring items surged by 52.77% to RMB 835 million. This growth is attributed to enhanced marketing of core cargo sources and improved collaboration with leading industry clients, particularly in high-value cargo segments such as wind power equipment and automotive transportation [3][8]. Summary by Sections Financial Performance - In H1 2025, the company achieved operating revenue of RMB 10.775 billion, a 44.05% increase year-on-year. The net profit attributable to the parent company was RMB 825 million, reflecting a 13.08% growth. The net profit excluding non-recurring items increased by 52.77% to RMB 835 million, indicating a substantial improvement in core business profitability [3][8]. Growth Drivers - The company has focused on expanding its fleet and optimizing its capacity structure, which has led to an increase in the proportion of high-value cargo. The strategy includes strengthening marketing efforts for core cargo sources and enhancing cooperation with top-tier clients, resulting in a higher volume of wind power equipment, energy storage cabinets, engineering machinery, and automobiles [8]. Future Outlook - The report projects continued growth in net profit for 2025-2027, estimating RMB 1.937 billion, RMB 2.361 billion, and RMB 2.670 billion respectively, with year-on-year growth rates of 26.6%, 21.9%, and 13.1%. The earnings per share (EPS) are expected to be RMB 0.71, RMB 0.86, and RMB 0.97, corresponding to price-to-earnings (PE) ratios of 9.3, 7.7, and 6.8 times [5][7].

Group 1: Real Estate Market - In June, the national real estate sales market experienced a volume and price adjustment, with a year-on-year decline in the average daily transaction area of commercial housing in 30 major cities by 2.2%, and a further decline of 9.2% in the first week of July [3] - The average daily transaction area in first, second, and third-tier cities in June showed year-on-year changes of -1.5%, 0.1%, and -7.8%, respectively, with the first week of July seeing declines of -7.2%, -11.7%, and -7.4% [3] Group 2: South Korea's Export Performance - In June, South Korea's exports grew by 4.3% year-on-year, recovering from a previous decline of -1.3% [6] - Key product categories such as ships, semiconductors, and computers showed significant growth, with year-on-year increases of 63.4%, 11.6%, and 15.2%, respectively [6] - Exports to Taiwan and the European Union performed well, while exports to China and the United States declined by 0.5% and 2.7%, respectively [7] Group 3: Consumer Market Trends - Following the "6·18" shopping festival, there was a noticeable decline in both home appliance and automobile sales [8] - In June, automobile retail data showed a slight decrease in sales, attributed to factors such as tight funding for trade-in programs and the end of promotional events [9] - Home appliance sales also experienced a downturn, with the average weekly sales of eight major appliance categories reaching 95.4 billion yuan in the first three weeks of June, but dropping to 42.9 billion yuan in the last week, reflecting a year-on-year decline of 2.7% [10] Group 4: Shipping and Freight Rates - Since June, freight rates on China-US routes have decreased, following a 90-day tariff reduction agreement reached in early May [11] - The shipping capacity on China-US routes increased significantly, leading to a drop in container shipping rates, with rates falling to 2089 and 4124 USD/TEU for the West and East coasts of the US, respectively [13]

Report Overview - The report mainly focuses on the shipping industry, providing data on EC futures contracts, spot freight rate indices, and other related information, as well as analyzing the impact of the Israel - Iran conflict on the shipping market [2][3] 1. EC Futures Contracts 1.1 Contract Price and Trading Volume - EC2506 had a closing price of 1901.8, a decline of 1.68% with a trading volume of 256 and a position change of -536 [2] - EC2508 had a closing price of 2038.0, an increase of 0.39% with a trading volume of 56247 and a position change of 843 [2] - EC2510 had a closing price of 206.7, an increase of 0.10% with a trading volume of 28998 and a position change of -240 [2] - EC2512 had a closing price of 1611.0, a decline of 0.01% with a trading volume of 6225 and a position change of -107 [2] - EC2602 had a closing price of 1431.5, a decline of 1.52% with a trading volume of 2901 and a position change of -230 [2] - EC2604 had a closing price of 1240.4, a decline of 2.61% with a trading volume of 382.4 and a position change of 823 [2] 1.2 Month - to - Month Spread - The spread between EC2506 - 2508 was -136.2, with previous spreads of -95.7, -130.1, and -40.5 for the previous day, two days ago, and three days ago respectively, and a week - on - week change of -60.7 [2] - The spread between EC2508 - 2510 was 6.6, with previous spreads of 621.9, 615.3, and 622.4, and a week - on - week change of -8.5 [2] - The spread between EC2506 - 2510 was 485.7, with previous spreads of 5196, -33.9, and -69.2, and a week - on - week change of 492.3 [2] - The spread between EC2510 - 2512 was 1.6, with previous spreads of -11.1, -194.9, and -196.5, and a week - on - week change of -188.3 [2] - The spread between EC2512 - 2602 was 21.9, with previous spreads of 27.0, 179.5, and 157.6, and a week - on - week change of 161.1 [2] 2. Spot Freight Rate Indices 2.1 European Line Spot Freight Rate Indices - SCEIS was 1247.05 on June 9, 2025, with a change of 29.53% compared to the previous period, and the previous value was 1622.81 with a change of 0.46% [2] - SCFI was 1587 on June 13, 2025, with an increase of 10.62% compared to the previous period, and the previous value was 1667 with an increase of 5.04% [2] - CCFI was 1488.87 on June 13, 2025, with an increase of 1.56% compared to the previous period, and the previous value was 1397.02 [2] - NCFI was 1307.92 on June 13, 2025, with an increase of 16.40% compared to the previous period, and the previous value was 1123.64 with an increase of 5.25% [2] - TCI was 852.18 on June 17, 2025, with no change compared to the previous period, and the previous value was 869.91 with an increase of 2.08% [2] 2.2 Other Routes' Spot Freight Rate Indices - The report also provides seasonal trend charts for various routes' TCI indices, including the Mediterranean West, Mediterranean East, US East, US West, South America West, Southeast Asia Ho Chi Minh, Persian Gulf, East Africa, India - Pakistan, South Africa, and West Africa [17][19] 3. Shipping Market News - On June 18, Iran launched hypersonic missiles at Israel, and the number of ships passing through the Strait of Hormuz was decreasing due to the Israel - Iran conflict [3] - The Baltic and International Maritime Council stated that the large - scale conflict between Israel and Iran made the entire shipping industry uneasy, and some ships were avoiding the Strait of Hormuz [3] - S&P Global Market Intelligence also indicated that the threat of the conflict was "sufficient to disrupt the shipping industry", and it was expected that shipping costs through the Strait of Hormuz would rise [3] 4. Shipping Capacity Arrangement - In June and July 2025, the average weekly shipping capacity was 297,000 TEU and 293,000 TEU respectively [2] - Shipping capacity was neutral from the second half of June to the first half of July, and was relatively high in the second half of July [2] 5. Recent European Line Quotations - Currently, downstream customers are booking spaces for the second half of June (week 24 - 25), with the lowest price of MSK at $2700 - 2800, and other companies' prices mostly reduced to $2900 - 3150, with an average of $2950, equivalent to about 2000 points on the futures market [3] - CMA announced a price increase to $4100 for the European line in July, while ONE and HPL quoted $4043 and $4335 respectively, and MSK opened bookings at $3400 [3]

Report Summary 1. EC Futures Contract Price and Related Data - **Contract Price and Change**: The closing prices of EC2506, EC2508, EC2510, EC2512, EC2602, and EC2604 on the previous day were 1970.3, 2199.1, 1383.0, 1570.1, 1399.8, and 1239.2 respectively, with changes of 4.02%, 4.71%, 3.29%, 2.00%, 3.02%, and 4.85% [2]. - **Volume and Open Interest**: The previous - day trading volumes were 5349, 90432, 14412, 1833, 508, and 886 respectively, and the open interests were 9086, 47961, 23756, 4451, 2687, and 3323 respectively, with open - interest changes of - 1467, 2192, - 33, - 136, - 49, and - 82 [2]. - **Month - to - Month Spread**: The spreads of EC2506 - 2508, EC2508 - 2510, EC2506 - 2510, EC2510 - 2512, and EC2512 - 2602 were - 228.8, 816.1, 587.3, - 187.1, and 170.3 respectively, with month - on - month and week - on - week changes [2]. 2. Spot Freight Rate Index - **SCFIS**: On June 2, 2025, it was 1252.82 points, up 0.46% from the previous period and down 1.44% year - on - year [2]. - **SCFI**: On May 30, 2025, it was $1587/TEU, up 20.50% from the previous period and 14.12% year - on - year [2]. - **CCFI**: On May 30, 2025, it was 1375.62 points, down 1.22% from the previous period and 2.64% year - on - year [2]. - **NCFI**: On May 30, 2025, it was 1067.59 points, up 36.25% from the previous period and 4.35% year - on - year [2]. - **TCI Daily**: On June 4, 2025, it was 769.36 points, with no change from the previous period [2]. 3. Shipping Capacity Arrangement The average weekly shipping capacity in June and July 2025 is 30 and 31 TEU respectively [2]. 4. Recent European Line Quotation - **Week 2 of June**: COSCO&OOCL's offline price increased by $200, and MSK's online price rose from $2100 to $2400. The average of week 23 is about 1800 points [3]. - **Second Half of June**: COSCO, CMA, HPL, ONE, OOCL announced price increases of $4200, $4245, $3500, $2900, $2937 respectively. MSC's price - increase letter indicated a price increase to $3900 in the second half of the month, and MSK's opening price was $2800 [3]. 5. Middle East Situation News - On June 5, Israeli officials said the US would veto the UN Security Council's Gaza cease - fire resolution [4]. - On June 5, the Houthi armed forces claimed to have attacked Israel's Ben - Gurion International Airport [4]. 6. Other Information - The XSI - C index is delayed by three working days [5].