Summary of Shipping Industry Conference Call Industry Overview - The shipping industry has experienced two cycles of high prosperity over the past five years, driven by the pandemic and the Red Sea conflict, significantly enhancing profitability and shareholder returns for shipping companies [1][3] - The industry is currently navigating the impacts of tariff policies and a global commodity production cycle, which are expected to create investment opportunities [1][2] Key Insights Container Shipping Industry - Container shipping volumes exceeded expectations from 2020 to 2022 due to the pandemic-driven home economy, fiscal stimulus, and supply chain disruptions [1][8] - The Red Sea conflict in early 2024 led to a 10% reduction in effective capacity across the industry, pushing freight rates higher [1][10] - A new wave of ship deliveries in the second half of 2025 is expected to fill the capacity gap, although tariff frictions are impacting Chinese exports [1][12][13] Oil and Dry Bulk Shipping - The oil and dry bulk shipping sectors are benefiting from a global production cycle, with increased demand for maritime trade [1][22] - The oil transportation sector is projected to see a rise in demand from 2022 to the first half of 2025, although it may face pressure in the second half of 2024 [1][26] - The dry bulk shipping market is expected to experience moderate growth, with a 12% increase in demand per ton-mile and a 6% increase in fleet size from 2023 to 2024 [1][41] Tariff Policy Impact - Tariff policies are significantly affecting the container shipping export chain, particularly in the first half of 2025, with ongoing implications for oil and dry bulk shipping [1][6][13] - The impact of tariffs has led to a notable reduction in exports to the U.S. from China, particularly affecting lower-value goods [1][13] Market Dynamics - The shipping industry is undergoing structural changes, including fleet modernization and alliance restructuring, which may lead to increased competition and differentiated service offerings [1][20] - The global mining sector is entering a new production cycle, with significant projects like the Simandou iron ore project expected to drive demand for dry bulk shipping [1][44][45] Investment Opportunities - The oil transportation sector is highlighted as having strong investment potential due to its current position in a commodity production cycle, with a favorable risk-reward profile [1][47][48] - Investors are advised to focus on oil transportation while monitoring developments in container and dry bulk shipping for potential recovery opportunities [1][48] Conclusion - The shipping industry is at a critical juncture, influenced by geopolitical factors, tariff policies, and evolving market dynamics. The outlook for oil and dry bulk shipping appears promising, while container shipping faces challenges that may present both risks and opportunities for investors [1][48]

Core Viewpoint - The company has received the second of four eco-friendly heavy-lift multipurpose vessels, named "Mingshi," which enhances its fleet and competitive capacity in the dry bulk shipping market [1][2]. Group 1: Vessel Delivery - On July 10, 2025, the company accepted the "Mingshi" vessel, which has a deadweight tonnage of 62,000 tons and is part of a series of energy-efficient multipurpose ships ordered in 2023 [1]. - The "Mingshi" vessel is equipped with three 150-ton cranes and is designed with a new generation of green technology [1]. Group 2: Fleet Expansion - The addition of the "Mingshi" vessel will effectively expand the company's multipurpose fleet and enhance its customer service capabilities [1]. - The company currently operates 102 vessels in its dry bulk shipping segment, including 6 heavy-lift multipurpose vessels, with 16 vessels on order [2]. Group 3: Market Context - The delivery of the "Mingshi" vessel comes at a time when the global dry bulk fleet is aging and facing structural shortages in capacity, positioning the company to strengthen its cargo carrying capabilities and competitiveness in niche markets [1].

希腊科斯莫航运公司：经过该区域的所有船只已被要求协助搜寻工作，并努力为船员家属提供最新情 况。 ...

Core Points - The "Shenzhen Waterway Vessel Safety Navigation Regulations" will be implemented on July 20, 2025, marking Shenzhen's first comprehensive management regulation for vessel safety navigation [1] - Shenzhen Port is the fourth largest container throughput port globally, playing a crucial role in the South China shipping hub and the Guangdong-Hong Kong-Macao Greater Bay Area [1] - In the first half of 2025, Shenzhen Maritime Bureau ensured the safe entry and exit of 448,300 vessels and 17.234 million standard containers, representing year-on-year increases of 48.62% and 10.70% respectively [1] Regulatory Framework - The regulations systematically standardize vessel navigation, berthing, and operational behaviors in Shenzhen waters, addressing multiple management gaps [1] - Key innovations include the first designation of inland navigation waters, establishment of surplus water depth and height, clarification of safety condition verification scope, and implementation of zoned speed limit management [1] Industry Support Initiatives - Shenzhen Maritime Bureau has developed a systematic support framework for the development of new waterborne industries through policy innovation, technological support, and industry collaboration [2] - The establishment of 5G network coverage in eastern waters aims to create a "highway" for waterborne information [2] - Special support for the export of "new three types" (new energy vehicles, lithium batteries, and energy storage cabinets) includes the formulation of industry standards for the safe transport of lithium batteries [2] - The establishment of the "International Ship Registration Center" facilitates the registration of "China Qianhai" flagged vessels, ensuring efficient safety for vessels entering and exiting Shenzhen Port [2]

Meeting Information - The shareholder meeting is scheduled for July 24, 2025, at 14:30, located at 42nd Floor, Shenglong Global Building, No. 23 Changting Street, Taijiang District, Fuzhou, Fujian Province [5] - The meeting will be hosted by Mr. Zeng Erbin, and the network voting system will be through the Shanghai Stock Exchange [6] Meeting Procedures - Shareholders must register 15 minutes prior to the meeting and will not be counted in the voting if they arrive late [2][3] - The meeting will include a combination of on-site and online voting, with each share having one vote [4][6] - The agenda includes registration, announcement of attendees, election of vote counters, discussion of proposals, and announcement of voting results [7] Proposals Proposal 1: Purchase of Bulk Carriers - The company plans to purchase bulk carriers for a maximum of USD 65 million, funded by self-owned (including self-raised) funds, which is approximately RMB 185.63 million, accounting for 31.80% of the company's latest audited total assets [8][9] - This purchase aims to expand capacity, improve fleet structure, and enhance competitiveness and profitability [9] Proposal 2: Increase in Guarantee Limit for 2025 - The company proposes to increase the estimated guarantee limit by USD 20 million, bringing the total to a maximum of USD 480 million and RMB 150 million for subsidiaries [10][12] - The guarantees will support the operational and business development needs of subsidiaries, ensuring compliance with risk management [18][19] - As of July 7, 2025, the total guarantee balance is RMB 2.53 billion, representing 61.51% of the company's latest audited net assets [19]

Core Viewpoint - The construction of Hainan Free Trade Port is accelerating the development of an international shipping hub, focusing on smart empowerment, green transformation, and institutional innovation [1][2][3] Group 1: Shipping Hub Development - Hainan aims to establish an international shipping hub facing the Pacific and Indian Oceans, supported by the Hainan Free Trade Port construction [1] - By the end of 2024, Hainan will have formed a "Four Directions and Five Ports" structure, with Yangpu Port as the international hub and Haikou Port as a major national port [1] - Yangpu Port is set to launch four 200,000-ton berths, increasing container throughput capacity to 5.5 million TEU annually [1][2] Group 2: Policy and Economic Incentives - Since the establishment of the Hainan Free Trade Port, shipping policy benefits have been rapidly released, with 64 international vessels registered and a total deadweight tonnage of 6.35 million [2] - Tax rebates for newly built vessels amount to 400 million yuan, while foreign vessels have received over 1.1 billion yuan in tax exemptions [2] - Hainan has completed 26 orders for domestic and foreign trade using the same vessel, and has implemented over ten institutional innovations to align with international shipping service systems [2] Group 3: Route Expansion and Connectivity - As of June 2025, Hainan will operate 72 stable container shipping routes covering major national ports, with new routes to ASEAN countries and a direct trade route to India [2] - Yangpu Port has signed cooperation agreements with five major international ports, including Abu Dhabi and Singapore [2] Group 4: Smart and Green Transformation - Hainan is advancing digital transformation across all ports, with Haikou Port exploring unmanned vessel technology and a separation transport model for trucks and new energy vehicles [2] - By the end of 2025, all ports in Hainan will have shore power facilities, and Yangpu Port is piloting an integrated "wind-solar-storage-charging" project [3] - Hainan is developing a low-cost marine methanol supply network and planning a methanol refueling base [3] Group 5: Institutional Innovation - Hainan is accelerating institutional innovation, aiming to establish a shipping open policy system aligned with international standards [3] - The province plans to expand the pilot scope of "international transshipment" business and facilitate the cross-border flow of shipping elements such as vessels, crew, and capital [3]

Core Viewpoint - Hainan Free Trade Port is actively developing into an international shipping hub facing the Pacific and Indian Oceans, with a focus on establishing an open shipping policy system aligned with international standards [1][2]. Group 1: Infrastructure Development - By the end of 2024, Hainan will have established a "Four Directions and Five Ports" layout, featuring Yangpu Port as the international hub port, Haikou Port as a major national port, and Yashuo Port, Sanya Port, and Qinglan Port as regionally significant ports [1]. - Yangpu's international container hub port will soon have four 200,000-ton berths, capable of accommodating the world's largest container ships, with an annual container throughput capacity expected to rise to 5.5 million TEU [1]. Group 2: Policy and Regulatory Framework - Hainan is drafting the "Hainan Free Trade Port Water Transport Regulations" to create an open shipping policy system that aligns with international standards, expanding the pilot scope for "international transshipment" business [2]. - The province is promoting the free flow of shipping elements such as vessels, crew, and capital across borders [2]. Group 3: Shipping Industry Innovations - Hainan's shipping industry is undergoing digital transformation and green transition, with ports advancing digital upgrades and implementing a "green port + green vessel" strategy [2]. - The province has registered 64 international vessels under the "China Yangpu Port" flag, providing over 1.1 billion RMB in tax exemptions for foreign vessels and attracting nearly 1,000 shipping companies [1].

Core Viewpoint - The 21st "China Maritime Day" will be celebrated on July 11, featuring over 20 diverse activities in Boao, Hainan, with the theme "Green Navigation Towards New Strength" to highlight industry development and innovation [1][2]. Group 1: Event Highlights - The main forum will release the "2024 China Shipping Development Report" and lists of safe and trustworthy shipping companies and vessels for 2025, focusing on industry hotspots and emerging topics such as ship finance and insurance, yacht safety, and maritime technology talent [1]. - A think tank seminar will be held to discuss the development of new productive forces in shipping, with experts addressing topics like high-quality development of inland shipping, world-class port construction, and innovations in smart navigation technology [1][2]. - The "Port Craftsman Innovation Exchange Camp" will provide a platform for industry workers to discuss technological trends and governance participation, alongside a discussion on building a high-end maritime talent team [2]. Group 2: Regional Focus - This year marks the operational closure and expansion of the Hainan Free Trade Port, with specific sessions dedicated to promoting its achievements and development policies during the main forum and related discussions [2]. - The event will also feature a series of public maritime science and culture activities aimed at engaging the general public and youth, with 120 national maritime science education bases opening to the public and numerous science ambassadors providing lectures [2]. Group 3: Commemorative Activities - On July 11, China Post will issue a commemorative envelope celebrating the 20th anniversary of the establishment of China Maritime Day [3].

1. Report Industry Investment Rating No information provided in the report. 2. Core Viewpoints of the Report - The container shipping market's EC盘面 maintains an overall volatile trend, with spot freight rates remaining relatively firm. The market is still speculating on the timing of the freight rate peak and the subsequent decline rate. Attention should be paid to tariff policies and geopolitical dynamics [4][5]. - The dry - bulk shipping market shows that large - vessel market is expected to be weakly volatile in the short term, while the medium - vessel market is expected to be strongly volatile. The tense situation in the Red Sea may increase shipping costs [15][19]. - In the tanker shipping market, short - term freight rate increases are mainly due to geopolitical conflict premiums. The impact of market sentiment changes on freight rates needs further attention [23]. 3. Summary by Directory Container Shipping Market Analysis and Strategy Recommendation - **Market Performance**: On July 10, EC2508 closed at 2022.5 points, up 0.5% from the previous day. The latest SCFIS European line reported 2258.04 points on July 10, up 6.3% month - on - month, and the SCFI European line reported $2101/TEU on July 4, up 3.5% month - on - month [2][4]. - **Logic Analysis**: Mainstream shipping companies' quotes are differentiated. The demand side is in the traditional peak season from July to August, but the impact of tariff policies on the shipping rhythm needs attention. The supply side shows that the weekly average capacity in July, August, and September 2025 is 284,900/289,500/298,700 TEU respectively, and the capacity in August and September has increased slightly compared to the previous schedule. Trump extended the tariff exemption period to August 1 and announced new tariffs on multiple countries [5]. - **Trading Strategy**: Unilateral trading should be volatile, focusing on tariffs and geopolitical dynamics. For arbitrage, conduct rolling operations on the 10 - 12 reverse spread [6]. Industry News - Trump plans to impose a 50% tariff on Brazil and will soon announce tariffs on semiconductors. He also issued trade letters to multiple countries on the 9th, announcing tariff rates on various countries' products [8]. - The EU aims to reach a trade agreement with the US before August 1. The EU is ready to take counter - measures, with the first phase to take effect on July 14 [9]. - HD Korea Shipbuilding & Marine Engineering received contracts for 4 container ships worth approximately $610 million, and Navios Maritime Partners will sign a series of new container shipbuilding orders with HJ Shipbuilding worth about $460 million [9]. - Regarding the Red Sea situation, Israel and Hamas are in cease - fire negotiations, and Trump said there is a high possibility of resolving the Gaza issue this week [10][11]. Dry - bulk Shipping Market Analysis and Outlook - **Freight Index**: The Baltic Dry Index (BDI) fell to 1423 points, down 0.6%, the Capesize Index (BCI) fell 5.5% to 1654 points, the Panamax Index (BPI) rose 3.3% to 1621 points, and the Handysize Index (BSI) rose 2.3% to 1151 points [14][15]. - **Spot Freight Rates**: On July 9, the freight rate for the Brazil Tubarao - Qingdao (BCI - C3) route was $18.43/ton, down 0.11% month - on - month, and the West Australia - Qingdao (BCI - C5) route was $7.32/ton, down 2.66% month - on - month. As of July 4, the weekly freight rates for some routes showed different changes [15][16]. - **Shipping Data**: From June 30 to July 6, 2025, the global iron ore shipping volume decreased by 362,700 tons month - on - month. In June 2025, Brazil shipped 13.4203 million tons of soybeans in 20 working days, compared with 13.9596 million tons in July last year [17]. - **News**: The situation in the Red Sea is tense, with two bulk carriers attacked and sunk, which may increase the Red Sea detour ratio and shipping costs. Vietnam imposed a final anti - dumping duty of 23.01 - 27.83% on Chinese hot - rolled coils from July 6, 2025 [17][18]. Industry News - In June 2025, Vietnam's coal imports were 6.4568 million tons, up 1.44% year - on - year and down 10.38% month - on - month. From January to June, the cumulative coal imports were 38.0258 million tons, up 13.75% year - on - year [20]. - Trump issued tariff letters to 8 countries on July 9, with tariff rates ranging from 20% to 50% [20]. Tanker Shipping Market Analysis and Outlook - **Freight Rates**: On July 9, the Baltic Dirty Tanker Index (BDTI) was 932, down 0.32% month - on - month and 12.41% year - on - year. The Baltic Clean Tanker Index (BCTI) was 537, up 0.56% month - on - month and down 36.75% year - on - year. The BDTI has declined recently, and the upward driving force of freight rates mainly comes from geopolitical conflict premiums [22][23]. Industry News - As of the week of July 9, Singapore's middle distillate inventory decreased by 149,000 barrels, light distillate inventory decreased by 368,000 barrels, and fuel oil inventory increased by 1.328 million barrels [24]. - In early July, the shipping prices of gasoline and diesel were supported but not significantly boosted. The new shipping orders of gasoline and diesel decreased or remained flat. The prices of 92 gasoline, 95 gasoline, and diesel showed a downward trend [24]. - OPEC restricted five major news agencies from participating in the oil industry conference, raising concerns about the transparency of the global energy market [24][25].

Core Viewpoint - Multiple listed companies in the Shanghai and Shenzhen markets have released important announcements, highlighting significant developments and performance forecasts that may impact investor decisions [1]. Company Announcements - **Saili Medical**: The therapeutic hypertension vaccine project by its affiliate, Huajiyuan Biotechnology, faces significant uncertainty despite recent market interest in innovative drugs. The company holds a 15.61% stake in Huajiyuan, which reported a revenue of 26,800 yuan and a net loss of 2,382,300 yuan for 2024 [3]. - **Renfu Pharmaceutical**: Shareholder,招商生科, has secured a loan commitment of up to 750 million yuan from招商银行武汉分行 to increase its stake in Renfu Pharmaceutical. The planned share buyback will occur within six months starting from July 3, 2025, with a maximum purchase price of 25.53 yuan per share [4]. - **China Merchants Energy Shipping**: The company has received a new multi-purpose heavy-lift vessel, "Mingshi," as part of its order for four eco-friendly vessels. The fleet now includes 102 operational bulk carriers, with 16 vessels on order for future delivery [5]. - **Shangwei New Materials**: The company announced a significant stock price fluctuation, with a 30% increase over two days. A share transfer agreement was signed, potentially changing the controlling shareholder to Zhiyuan Hengyue, pending shareholder approval [6]. - **Northern Rare Earth**: The trading price for rare earth concentrates has been adjusted to 19,109 yuan per ton for Q3 2025, based on market conditions [7]. - **Baotou Steel**: Similar to Northern Rare Earth, Baotou Steel has proposed an adjustment of the rare earth concentrate trading price to 19,109 yuan per ton for Q3 2025 [9]. - **Shanghai Mechanical & Electrical**: The company received approval from the Shanghai State-owned Assets Supervision and Administration Commission for the transfer of 51.137 million shares from its controlling shareholder, Shanghai Electric, without changing control [10]. Performance Forecasts - **Eyer Communication**: The company expects a net profit of approximately 463 million yuan for the first half of 2025, a year-on-year increase of about 121.13%, driven by growth in the IoT sector [12]. - **Tianbao Infrastructure**: The company forecasts a net profit of 90 million to 130 million yuan for the first half of 2025, representing a year-on-year increase of 1581.8% to 2329.27% due to tax recoveries [13]. - **China Shipbuilding**: The expected net profit for the first half of 2025 is between 2.8 billion and 3.1 billion yuan, reflecting a year-on-year increase of 98.25% to 119.49% due to improved production efficiency and order structure [14]. - **Shanghai Xiba**: The company anticipates a net profit of 99 million to 118 million yuan for the first half of 2025, a year-on-year increase of 136.47% to 181.85%, primarily due to non-recurring income [15]. - **Longyuan Technology**: The expected net profit for the first half of 2025 is between 26 million and 31 million yuan, reflecting a year-on-year increase of 116.61% to 158.26% [16]. - **Zhengbang Technology**: The company forecasts a net profit of 190 million to 210 million yuan for the first half of 2025, marking a return to profitability driven by increased pig sales [17][18]. - **Bolong Technology**: The expected net profit for the first half of 2025 is between 22 million and 28 million yuan, a year-on-year increase of 123.09% to 183.93% due to successful project deliveries [19]. - **Haitou Shares**: The company anticipates a net profit of approximately 380 million yuan for the first half of 2025, a year-on-year increase of about 233.10% due to favorable market conditions [20]. - **Chuangjiang New Materials**: The expected net profit for the first half of 2025 is between 24 million and 29 million yuan, reflecting a year-on-year increase of 42.35% to 72% [21]. - **Hudian Shares**: The company forecasts a net profit of between 1.65 billion and 1.75 billion yuan for the first half of 2025, a year-on-year increase of 44.63% to 53.4% [22]. - **Taiping Bird**: The company expects a net profit of around 77.7 million yuan for the first half of 2025, a decrease of approximately 55% due to declining retail performance [23]. - **China Satellite**: The company anticipates a loss of between 21.2 million and 41.2 million yuan for the first half of 2025, attributed to reduced contract fulfillment and increased operational costs [24]. - **ST Yatai**: The company expects a loss of between 12.6 million and 20.9 million yuan for the first half of 2025, primarily due to cash flow issues and increased non-recurring expenses [25]. Major Contracts - **Bai Da Group**: The company signed a significant leasing contract for the Hangzhou Department Store, with a rental agreement of 375 million yuan per quarter, increasing by 4.5% every three years [26]. Shareholding Changes - **Baoshui Technology**: A major shareholder plans to reduce their stake by up to 1% through market transactions between August 4 and November 3, 2025 [28].