2025 Annual Results Investor Presentation Advancing Steadily to Lead the Way Forward March 2026 Contents China Overseas Building, Shenzhen Scale & Profitability Strengths Outlook Prudence and Stability Strengths Competitive Development Strengths Results Highlights ESG Development Appendices Corniche, Beijing Results Highlights 2025 Results Highlights Industry No.1 in attributable sales1 Contracted sales 251.23b Industry No.1 in attributable investment scale2 92.42b Leading profit before tax 20.61b Leading m ...

Investment Rating - The report does not explicitly provide an investment rating for the medical device industry. Core Insights - The medical device industry is experiencing continuous growth globally, driven by advancements in technology, materials, and concepts, which enhance product functionality and precision [6][32]. - The industry plays a crucial role in improving healthcare services and resource allocation, significantly impacting accessibility and equity in medical care [6][32]. - The report emphasizes the importance of ESG (Environmental, Social, and Governance) principles, highlighting that adherence to these standards can enhance corporate image and drive sustainable development within the industry [7][56]. Summary by Sections Chapter 1: Overview of the Medical Device Industry - The upstream segment includes raw material supply and technology research and development, which are foundational for medical device production [19][20]. - The midstream segment focuses on product design, manufacturing, marketing, and distribution, emphasizing the need for compliance with regulatory standards [20][24]. - The downstream segment pertains to the application of medical devices in various healthcare settings, where performance, safety, and user experience are critical [29][30]. Chapter 2: ESG Development in the Medical Device Industry - The report discusses the current state of ESG information disclosure, noting that the healthcare sector has a disclosure rate of 39%, slightly below the average [56][57]. - It highlights the need for improved transparency and accountability in ESG reporting, as many companies focus on achievements while neglecting potential risks [58]. - The report outlines various domestic and international policies that guide the medical device industry towards sustainable practices, including regulations on waste management and product safety [59][62]. Chapter 3: ESG Practice Cases in the Medical Device Industry - The report presents case studies of leading companies in the medical device sector, showcasing their ESG practices and contributions to sustainable development [7][56]. - It emphasizes the importance of integrating ESG principles into corporate strategies to enhance competitiveness and address societal expectations [58][59].

Core Insights - The article highlights the transformation of China's manufacturing industry from a cost advantage to a comprehensive capability advantage within the global manufacturing supply chain restructuring [1] - Midea Group's strategic collaboration with Xiamen Hexing Packaging marks a significant milestone in its journey to empower suppliers and accelerate the globalization of its To B business [1][4] Group 1: Partnership Evolution - The partnership between Midea and Hexing began in 2007, initially focusing on basic packaging for home appliances [3] - Over 18 years, Hexing has evolved into a leading packaging company in Asia, while Midea has transformed into a global supply chain leader, shifting their collaboration from single product supply to a comprehensive global industrial ecosystem [4] Group 2: Empowerment Mechanisms - Midea's empowerment strategy includes a multidimensional support system centered on management, technology, and digitalization, enhancing the collaborative capabilities across the supply chain [4] - Midea has implemented its MBS lean management model and stringent quality management systems in Hexing's development, facilitating a comprehensive management empowerment process [5] Group 3: Digital Transformation - Midea is driving Hexing's transformation from a traditional packaging company to a "packaging + IoT solutions" provider, resulting in an 8% reduction in packaging costs, a 15% decrease in transportation damage rates, and a 12% cut in logistics costs [5] Group 4: Globalization Strategy - Midea's "same boat" globalization strategy extends its supplier empowerment, crucial for the global rollout of its To B business [7] - Midea has over 40 years of overseas experience, having established resources in Southeast Asia, and Hexing has rapidly set up factories in Thailand and Indonesia in response to Midea's localization strategy [8] Group 5: New Market Development - The collaboration has expanded from traditional packaging to high-end manufacturing sectors such as energy storage and industrial robotics, reflecting Midea's strategic focus on new business areas [9] - Hexing's development of customized packaging solutions for energy storage and industrial robots illustrates the shift from single product supply to comprehensive solution offerings [9] Group 6: Financial Growth and Future Investments - Midea's To B business revenue has exceeded 100 billion yuan for two consecutive years, with plans to invest over 60 billion yuan in advanced fields like renewable energy and artificial intelligence over the next three years [11] - The partnership with Hexing exemplifies Midea's approach to driving industry-wide capability upgrades through data sharing, joint innovation, and mutual benefits [11] Group 7: Industry Implications - The collaboration model between Midea and Hexing provides valuable insights for the high-quality development of China's manufacturing industry amid the shift from inter-company competition to inter-industry competition [12] - The synergy between Midea's technological advancements and Hexing's rapid response capabilities fosters a positive cycle of collaborative development within the supply chain [13]

Core Insights - The annual home decoration and building materials reputation list highlights a significant trend where environmental performance and customization capabilities have become core indicators affecting brand rankings, indicating a shift away from traditional price-based competition [1][2] Group 1: Industry Trends - The reputation list evaluates brands based on environmental certification levels, recyclability, customization case studies, user satisfaction, and service professionalism, showing that manufacturers investing in these areas, like Nanjing Zhuoxi Building Materials, are leading in rankings [2][3] - The push for "dual carbon" goals and green building standards has transformed environmental considerations from a bonus to a necessity for market entry [2][3] - New-generation consumers prioritize health, individual expression, and sustainable lifestyles in their decision-making, moving beyond mere aesthetics and functionality [2][3] Group 2: Environmental Performance - Environmental performance has evolved from a marketing slogan to a critical value throughout the product lifecycle, with manufacturers needing to use formaldehyde-free adhesives and recyclable materials to ensure safety and sustainability [3][4] - The production process is scrutinized for clean production certifications and energy consumption, while end-use performance must meet strict indoor air quality standards to ensure user health [4][5] Group 3: Customization Capabilities - Customization has shifted from standardized products to tailored space solutions, requiring manufacturers to demonstrate design capabilities, flexible production, and comprehensive service [5][6] - Nanjing Zhuoxi Building Materials exemplifies this with its "integrated ceiling and wall customization" approach, addressing consumer concerns about design accuracy and installation complexity [5][6] Group 4: Future Industry Outlook - The honeycomb board and related ceiling materials industry is expected to see a trend towards "green supply chains," with leading companies focusing on securing high-quality, eco-friendly raw materials and investing in recycling systems [6][7] - The integration of smart manufacturing and digital services will become prevalent, enhancing customization efficiency and precision through technologies like 3D design platforms and AI [6][7] - Competition will increasingly focus on providing comprehensive solutions that integrate materials, design, smart functions, and construction services, rather than just selling raw materials [6][7] Group 5: Market Segmentation - The market is anticipated to further differentiate, with comprehensive brands expanding their market share while niche players specializing in specific applications will also find stable customer bases [7][9] Group 6: Conclusions and Implications - The reputation list reveals a fundamental restructuring of the value assessment system in the honeycomb board industry, where environmental standards are the baseline for survival and customization represents the upper limit for growth [9][10] - Companies must reassess their core competencies, focusing on technological innovation and service upgrades to ascend the value chain, while consumers should prioritize brands that excel in environmental standards and customization capabilities [10]

Core Viewpoint - Jinling Petrochemical and JD Government Business signed a strategic cooperation agreement to explore innovative paths for the integration of energy, chemicals, and digital economy [1] Group 1: Strategic Cooperation - The partnership aims to establish a regular communication mechanism between Jinling Petrochemical and JD Government Business [1] - Both companies will collaborate in areas such as supply chain, digital transformation, and rural revitalization [1] Group 2: Resource Complementation - Jinling Petrochemical has significant advantages in energy supply and chemical products, while JD Government Business offers a stable and efficient supply chain infrastructure [1] - The cooperation will include joint promotion of proprietary brands and material procurement to achieve resource complementarity [1] Group 3: Sustainability Initiatives - The collaboration will incorporate "dual carbon" goals and environmental protection into their projects [1] - Both parties will explore innovative projects in new energy services and green supply chains to inject new momentum into the sustainable development of the industry [1]

Core Viewpoint - The article highlights the recognition of Eastern Airlines Logistics for its sustainable practices in building a green supply chain under the Belt and Road Initiative, showcasing its commitment to environmental, social, and governance (ESG) principles [1][3]. Group 1: Event Overview - The Fourth "Belt and Road" Economic and Environmental Cooperation Forum was held in Beijing on January 29, focusing on "Empowering Industrial Win-Win through Green Outbound" [1]. - Eastern Airlines Logistics' case study on creating a green supply chain for fresh produce was selected as a notable example by the China Environmental Protection Federation [1]. Group 2: Company Initiatives - Since 2013, Eastern Airlines Logistics has developed a "Fresh Air Express" route from Santiago, Chile, to Shanghai, continuously bringing high-quality fresh produce to China and connecting it with global markets [2]. - The company is expanding its global route network under the Belt and Road Initiative, particularly in South America, with plans to launch the longest passenger route from Shanghai to Buenos Aires by 2025 [2]. Group 3: Sustainability Practices - Eastern Airlines Logistics integrates green and low-carbon principles into its fresh produce supply chain, utilizing energy-efficient aircraft and optimizing flight routes to reduce carbon emissions [3]. - The company has developed a green and efficient cold chain service network, employing temperature control monitoring devices and visualization systems to manage energy consumption and ensure product quality [3]. - Future plans include the adoption of sustainable aviation fuel (SAF) and clean energy technologies to enhance the resilience and sustainability of the global fresh produce supply chain [3].

Core Viewpoint - The leading role of chain enterprises is increasingly prominent in the journey towards high-quality development in the manufacturing industry, exemplified by Midea Group's Wuhu factory being recognized as a "Global Lighthouse Factory" by the World Economic Forum [1] Group 1: Midea Group's Initiatives - Midea Group has over 5,000 upstream suppliers and more than 100,000 downstream service enterprises, fostering a collaborative ecosystem that enhances supply chain capabilities [1] - The Wuhu factory integrates digitalization and sustainability, setting a benchmark for regional manufacturing transformation [1] Group 2: Partnership with Xiangxin - Xiangxin New Materials Technology Co., Ltd. has been a core supplier for Midea for over 20 years, focusing on eco-friendly packaging and precision injection molding [1] - In 2024, Xiangxin's output is projected to reach 1.6 billion yuan, with approximately 380 million yuan coming from Midea, highlighting the significance of this partnership [2] Group 3: Innovations in Green Packaging - Xiangxin's EPP (expanded polypropylene) packaging reduces product weight by 30%, increases recycling rates to 90%, and lowers carbon emissions by 25% per package [2] - A long-term green packaging cooperation agreement was signed between Xiangxin and Midea, establishing a joint laboratory to explore biodegradable materials and carbon fiber composites [2] Group 4: International Expansion - Xiangxin plans to establish a green supply chain node in Indonesia, integrating local resources with proven EPP recycling technology to meet international environmental standards [3] - The partnership aims to expand eco-friendly packaging into European and Southeast Asian markets, showcasing a model of "technology + standards + localization" for internationalization [3]

Core Viewpoint - The rural tourism industry in China has transitioned from scale expansion to a critical phase of quality improvement and efficiency enhancement, exemplified by the case of Shuikou Township in Zhejiang Province, which has developed a new path for high-quality rural tourism through the construction of a green supply chain [1][4]. Group 1: Challenges in Rural Tourism Development - The early development of rural tourism in Shuikou Township was characterized by fragmented operations by individual farmers, leading to issues of efficiency, environmental impact, and quality [2]. - The imbalance between front-end and back-end service systems hindered effective planning and coordination, resulting in a bloated operational structure with low resource utilization and high environmental pollution [2][3]. - The low organizational level of the rural tourism supply chain, with various entities operating independently, limited collaboration and integration, thus constraining overall efficiency and high-quality development [3]. Group 2: Solutions for Improvement - To address the identified challenges, the local government, tourism managers, and experts collaborated to optimize resource allocation and enhance industry cooperation, aiming to improve the overall operational efficiency and service quality of rural tourism [4][5]. - A new green supply chain centered on shared back-end services was established, separating inefficient and polluting back-end operations from individual businesses and consolidating them into a shared service platform [4]. - The comprehensive planning of both front-end services and back-end support was emphasized, integrating suppliers and support facilities into a unified development framework to enhance the overall efficiency of the rural tourism industry [5]. Group 3: Policy Support and Future Prospects - Increased policy support and green regulatory measures are essential for the successful implementation of the green supply chain and the effective operation of the shared service platform [5]. - The ongoing development of the tourism back-end service sharing platform has led to a thriving rural tourism industry in Shuikou Township, providing a replicable model for enhancing quality and efficiency in rural tourism across the country [6].

Core Insights - The logistics and e-commerce indices reached new highs in December 2025, driven by standardization efforts that support high-quality supply chain development [3][5][9] Group 1: Industry Performance - The warehousing index in December 2025 was 52.4%, an increase of 2 percentage points from the previous month, marking the highest level since February of the previous year [5][8] - The logistics industry prosperity index for December 2025 was 52.4%, reflecting a continuous recovery in demand for logistics services across various sectors, including manufacturing and e-commerce [8][9] - The express delivery index reached 466.8 in December, with an estimated business volume of around 18 billion packages, indicating stable market conditions supported by promotional activities [8][9] Group 2: Investment Trends - The cold chain logistics sector saw increased investment activity, with funds concentrating on high-value areas such as pharmaceutical cold chains, leading to successful IPOs like that of Hongxing Cold Chain on the Hong Kong Stock Exchange [21][26] - Multiple high-end cold chain and logistics hub projects are underway, including a 20 billion yuan investment in the Luzhong Cold Chain Logistics Industrial Base, aimed at enhancing cold chain services in the region [23][25] Group 3: Policy Developments - A series of policies aimed at standardization, green transformation, and financial support have been introduced to address industry pain points and promote high-quality development in the logistics sector [10][11][12] - The implementation of the "Green Supply Chain" initiative encourages companies to adopt national standards for carbon footprint evaluation, promoting a comprehensive green development approach [11][12] Group 4: Market Dynamics - The average rental price for warehousing in Guangzhou was 23.14 yuan per square meter per month in December, showing a slight decline, while the vacancy rate decreased to 16.40% [14][17] - The logistics sector is experiencing a shift towards immediate logistics infrastructure, with major players like Taobao and Meituan investing heavily in front warehouse networks to enhance delivery capabilities [13][18] Group 5: REITs and M&A Activity - Recent trends indicate a pullback in warehousing logistics REITs, with significant declines in market valuations, prompting a rise in small equity mergers and acquisitions [27][28] - Pre-REITs funds are being established to nurture quality assets and facilitate connections to public REITs markets, indicating a strategic shift in capital deployment within the logistics sector [27][28]

Core Insights - The collaboration between JD Industrial and Dajue New Materials focuses on producing environmentally friendly packaging materials, specifically PCR (Post-Consumer Recycled) products, which significantly reduce carbon emissions compared to traditional materials [1][3][7] Group 1: Environmental Impact - JD Industrial's exclusive production line has produced approximately 2,500 tons of PCR products, resulting in a reduction of 1,780 tons of CO₂ equivalent emissions, equivalent to the annual absorption of 178,000 trees [1] - The global plastic consumption is projected to exceed 500 million tons by 2024, with around 399 million tons becoming plastic waste, highlighting the urgent need for sustainable packaging solutions [3] Group 2: Market Trends - The Chinese green packaging market is expected to reach approximately 850 billion yuan by 2025, with a market penetration rate of about 25%, and is projected to grow by 19.5% in 2026 [4] - As green packaging transitions from an optional choice to a necessity, it will drive carbon neutrality across the entire industry chain [4] Group 3: Business Strategy - JD Industrial serves over 11,000 key enterprise clients and millions of SMEs, including around 60% of China's Fortune 500 companies, and is expanding its presence in international markets such as Brazil, Thailand, and Europe [5] - The partnership with Dajue New Materials exemplifies a closed-loop model that ensures high-quality recycled materials while meeting stringent performance standards [7][8] Group 4: Technological Innovation - Dajue New Materials utilizes advanced carbon footprint measurement tools, such as the GaBi software, to quantify environmental benefits, ensuring transparency and accountability in their green supply chain [7] - JD Industrial's digital supply chain solutions enhance operational efficiency for manufacturing partners, enabling precise demand forecasting and production planning [8][9] Group 5: Future Aspirations - Both companies aim to leverage their collaboration to innovate in the application of green materials across various industries, contributing to a resource-saving and low-carbon circular economy [9]