Group 1 - The 137th Canton Fair is actively taking place, with over 300 participating companies from Suzhou engaging in product negotiations and aiming to secure orders [1] - Companies like Kunshan Kristal Cultural Technology have maintained a new product exhibition ratio of over 20% for 12 consecutive fairs, attracting inquiries and achieving potential order amounts in the millions of dollars, with a 15% increase in the number of buyers compared to the previous session [1] - Changshu's Hongchang Weaving has also seen success, with confirmed order amounts exceeding 1 million USD and an increase in the number of buyers compared to previous fairs [1] Group 2 - Suzhou's foreign trade resilience is being supported by a dedicated team that extends services to the Canton Fair, ensuring that enterprises can effectively utilize the platform to expand their market [2] - The Suzhou foreign trade service hotline operates 24/7, addressing the needs of local businesses, such as facilitating logistics solutions for automotive parts exports to Europe [2] - The service team has achieved an 85% response rate in addressing enterprise challenges, effectively managing requests through a comprehensive process [2] Group 3 - To counter international market fluctuations, Suzhou is promoting a "dual circulation" strategy, encouraging enterprises to participate in the Canton Fair and launching a "Hundred Groups, Thousand Enterprises" initiative to enhance international market presence [3] - Approximately 20 groups are expected to be organized from May to June to expand international market share and strengthen collaboration with foreign companies [3]

Financial Data and Key Metrics Changes - The company reported a 39% year-over-year increase in income from operations for Q1 [6] - Total operating expenses declined by $34 million or 6.5% year-over-year [27] - Average headcount in Q1 was down 11% compared to Q1 of last year [27] - The effective tax rate for the quarter was 13.7%, with an expected full-year rate of 18% to 20% [29] Business Line Data and Key Metrics Changes - In North American Surface Transportation (NAST), truckload volume was down 4.5% year-over-year but up 3.5% sequentially, while LTL volume grew 1% year-over-year and 1.5% sequentially [13] - NAST gross margin improved by 140 basis points year-over-year [15] - Global Forwarding saw a decline in ocean bookings out of China due to customers reducing purchases to mitigate tariff exposure [7][9] Market Data and Key Metrics Changes - The Q1 CAS freight shipment index was down 6.3% year-over-year and down 3.5% sequentially [13] - The percentage of ocean and air volume from the China to US trade lane declined from approximately 35% to less than 25% from 2024 [9][51] Company Strategy and Development Direction - The company is focused on disciplined execution of strategies to take market share and expand margins, regardless of market conditions [5] - There is an emphasis on leveraging artificial intelligence and automation to enhance customer and carrier experiences [6][20] - The company aims to diversify its supply chain offerings and reduce dependence on specific trade lanes [8][9] Management's Comments on Operating Environment and Future Outlook - Management noted that new tariffs and fluid trade policies have created market uncertainty, impacting customer purchasing behavior [7] - The company remains confident in its strategy and the resilience of its employees despite market challenges [9] - Management expressed optimism about the company's ability to improve operational execution and financial performance across market cycles [37] Other Important Information - The company generated $106.5 million in cash from operations in Q1 and ended with approximately $1.16 billion in liquidity [29][30] - The company returned $175 million to shareholders in Q1 through share repurchases and dividends [30] Q&A Session Summary Question: Weather impact on trucking market - Management acknowledged weather impacts in January and March but emphasized their proactive approach to managing these challenges [40][42] Question: International markets and global forwarding - Management discussed the ongoing scenario planning due to market volatility and the benefits of diversifying supply chains away from China [48][51] Question: April outlook and truckload capacity - Management refrained from providing specific guidance for April but noted that Q2 is typically stronger [62] - They confirmed that capacity is continuing to exit the marketplace, but no significant market inflections have been observed [66][68] Question: AGP deceleration and CapEx - Management clarified that the AGP deceleration was due to tougher comparisons and not indicative of a significant trend [71] - They adjusted CapEx guidance based on the outlook and prioritization of initiatives [72] Question: Headcount and market aggressiveness - Management explained that the headcount decline was influenced by the divestiture of the European Surface Transportation business and emphasized dynamic workforce management [85] - They confirmed a strategic focus on balancing market share growth with margin expansion [88][91]

Core Viewpoint - The newly released "Market Access Negative List (2025 Edition)" indicates a further relaxation of market access restrictions in China, reducing the number of restricted items from 117 to 106 compared to the 2022 version [1][2]. Group 1: Changes in Market Access - The 2025 edition of the negative list has lowered entry barriers by removing 8 national access restrictions, such as changing the public seal engraving industry from a licensing system to a filing system [1]. - The list has also opened up 8 national measures in sectors like new telecommunications services, TV production, and pharmaceutical wholesale and retail, streamlining the access process while maintaining necessary management [1]. - Additionally, 17 local measures have been removed, promoting a unified national market by canceling local licensing requirements in areas like transportation logistics and vehicle rental services [1]. Group 2: Equal Access for Enterprises - According to the National Development and Reform Commission, all types of business entities, whether state-owned or private, large or small, can enter the market equally and legally, with no illegal access barriers set by the government outside the list [2]. - The 2025 edition maintains a balance by ensuring that while access is widened, certain sectors like unmanned aerial vehicle operations and new tobacco products are still included in the negative list for regulatory purposes [2]. Group 3: Historical Context - Since the first version of the market access negative list was introduced in 2018, there have been four revisions, reducing the number of restricted items from 151 to the current 106, representing a reduction of approximately 30% [2].

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $6.6 million, reflecting a 25% year-over-year increase, the highest quarterly growth rate since going public [25] - Adjusted EBITDA for Q4 2024 was negative $3.1 million, within guidance range, with a full year adjusted EBITDA loss of negative $12.6 million, significantly improved from negative $19 million in 2023 [27][29] - Gross margins improved, with IFRS gross margin reaching 68%, up from 62% in Q4 2023, and non-IFRS gross margin increasing to 74% from 70% last year [26] Business Line Data and Key Metrics Changes - Platform revenue grew 21% year-over-year to $2.3 million, supported by steady transaction growth [26] - Solutions revenue increased 28% year-over-year to $4.3 million, benefiting from SaaS expansion and the inclusion of the Chipster business [26] - Unique buyer users increased 14% year-over-year, breaking the 20,000 mark, reinforcing network effects [15] Market Data and Key Metrics Changes - The air cargo market saw robust demand driven by e-commerce, with Q4 volumes up 10% compared to the previous year [7] - Air cargo rates reached year highs during peak season, with a global average price essentially flat on Q4 2023 and up 5% from Q3 2024 [8] - The U.S. reinstated the de minimis exemption for e-commerce goods, which could impact air cargo volumes and rates [10] Company Strategy and Development Direction - The company is focused on capturing the market opportunity of digitalizing international freight, with ongoing investments in market education [6] - Three strategic pillars are emphasized: Platform, Solutions, and Network, with a focus on enhancing capabilities and expanding carrier adoption [12][20] - A major initiative called Fusion aims to unify all software into a modern, efficient stack, with significant development planned for 2024 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term digitalization of freight, despite potential short-term uncertainties from tariffs [11][24] - The company expects continued improvements in adjusted EBITDA, reflecting revenue growth and operational efficiencies, aiming for breakeven by the end of 2026 [27][29] - Management highlighted the importance of achieving API connectivity in the ocean freight segment as a key milestone for digital transformation [36] Other Important Information - The company plans to reinvest in platform development after reducing investment in mid-2023, with results expected to materialize in 2026 [16] - The integration of AI across the platform is a priority, with new tools like Skyway showing promise in optimizing pricing and procurement [19][55] Q&A Session Summary Question: What examples indicate the industry is closer to an inflection point in digital adoption? - Management noted that air freight is further along in digitalization, while ocean freight is still in early stages, with hopes for API connectivity to accelerate adoption [36][38] Question: How does the company view potential M&A opportunities with the rebound in stock price? - Management stated that while they are not actively planning acquisitions, they remain open to opportunistic deals if attractive opportunities arise [40][41] Question: Can you elaborate on the potential impacts of tariffs? - Management indicated that while tariffs could dampen world trade, they do not expect a major impact, and potential changes in e-commerce regulations could benefit their platform [46][50] Question: What is the timeline for the rollout of AI opportunities? - Management mentioned that AI tools are being rolled out internally and in products, with significant impacts expected in productivity and customer offerings throughout the year [54][56]