Core Insights - DHL identifies the Guangdong-Hong Kong-Macao Greater Bay Area as a strategically significant region for its global freight operations in China, accounting for 25% of air freight and 20% of sea freight volumes [1][3] - The company highlights the rapid expansion of e-commerce and manufacturing in Shenzhen and surrounding areas, with BYD exemplifying the shift towards high-tech and precision manufacturing in China [1][3] Company Operations - DHL operates 54 branches in China, with 9 located in the Greater Bay Area, employing over 400 staff [3] - The total cargo volume at the major international air freight ports of Hong Kong, Guangzhou, and Shenzhen is projected to reach 9.2 million tons in 2024, representing 7.2% of global trade volume [3] Trade Dynamics - Despite global trade restructuring, China shows strong export performance in sectors like new energy and high-tech manufacturing, with DHL adjusting capacity and multimodal transport solutions to support Chinese enterprises [3][4] - Exports of new energy vehicles, lithium batteries, and wind turbines have seen significant growth, with electromechanical products making up over 60% of total exports and integrated circuit exports increasing by 23% [3] Market Trends - The trend of Chinese e-commerce companies expanding overseas is creating new logistics demands, with markets in the Middle East and Latin America emerging as growth points [3] - Companies are increasingly adopting "nearshoring" and "friendshoring" strategies to relocate production closer to markets, while DHL enhances its digital platform myDHLi to provide comprehensive supply chain services [3] Infrastructure and Efficiency - DHL utilizes consolidation services and multimodal transport solutions to efficiently integrate inland cargo for export through Greater Bay Area ports, helping clients reduce costs and improve efficiency [4] - The strategic infrastructure and connectivity of the Greater Bay Area allow for flexible resource allocation to adapt to changing trade routes [4]

Core Viewpoint - The article discusses the recent initiative by Huolala to address the concerns of drivers regarding algorithm transparency and labor rules through collective negotiation and the establishment of a special agreement [2][5]. Group 1: Algorithm and Labor Relations - The emergence of platform algorithms as a new form of employment is highlighted, with Huolala holding the first national algorithm negotiation meeting to clarify labor rules [2]. - The lack of traditional labor relations for over 200 million flexible workers in China has made establishing effective social security systems a pressing issue [3]. - The "black box" nature of algorithms has created a gap in understanding and potential conflicts between platforms and drivers, particularly regarding income distribution and accountability for order cancellations [3][5]. Group 2: Key Issues and Solutions - Six core areas of concern for drivers include service income, management of cargo owners, labor safety, and the impact of behavior scores on order eligibility [3]. - Huolala's special agreement outlines rules for commission, order distribution, and driver welfare, addressing issues like fatigue driving with a planned investment of 338 million yuan for improvements [5][6]. - The platform has introduced a new public interface to clarify the principles of order cancellation responsibility, stating that only 4% of canceled orders are attributed to drivers [5][6]. Group 3: Future Engagement - Huolala plans to hold regular negotiation meetings to ensure drivers' rights to information and participation, indicating that discussions around algorithms will become a new norm in labor relations [6].

Financial Data and Key Metrics Changes - For the fiscal year ended June 30, 2025, the company generated $38.8 million in adjusted EBITDA, an increase of $7.6 million or 24.4% compared to the prior year, primarily driven by acquisition efforts [3][10] - The net income for the quarter ended June 30, 2025, was $4.9 million on revenues of $220.6 million, representing a slight increase of 2.6% from the previous year [8][9] - Adjusted net income for the same quarter was $5.5 million, down 21.8% from $7.0 million in the prior year [9][10] - For the 12 months ended June 30, 2025, net income was $17.3 million on revenues of $902.7 million, a significant increase of 125% compared to the previous year [10] Business Line Data and Key Metrics Changes - The company completed three Greenfield acquisitions and three strategic operating partner conversions in fiscal 2025, contributing to the overall growth in adjusted EBITDA [6][7] - The acquisition of WePort in Mexico is expected to enhance the company's capabilities and support its North American footprint [7] Market Data and Key Metrics Changes - The company anticipates continued volatility in the near term due to ongoing U.S. trade negotiations and tariffs, but expects a surge in global trade once disputes are resolved [4][5] - There is a noted shift in sourcing from China to Southeast Asia and Mexico, which the company believes will benefit from the changing trade dynamics [13] Company Strategy and Development Direction - The company aims to deliver profitable growth through a combination of organic and acquisition initiatives while maintaining a strong balance sheet [5][6] - The focus is on leveraging technology and expanding the sales organization to enhance cross-selling opportunities and customer engagement [57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's prospects, emphasizing the importance of a robust North American footprint and global service partner network [62] - The company is preparing for a muted peak season due to ongoing tariff uncertainties but remains committed to supporting customers through these challenges [31] Other Important Information - The company has approximately $23 million in cash and only $20 million drawn on its $200 million credit facility, indicating a strong financial position [5] Q&A Session Summary Question: Impact of changing trade policy on business, especially in Mexico - Management noted that trade policy remains fluid, with customers navigating tariffs and supply chain challenges, but sees Mexico benefiting from these dynamics [12][13] Question: Management of business amidst import volatility - Management indicated that customers are struggling with supply chain management due to volatility, leading to inventory adjustments [15] Question: EBITDA margins and quarter performance - Management attributed lower EBITDA margins to a lack of pull-forward in the current quarter compared to previous periods [16][17] Question: Depreciation and amortization changes - Management clarified that the decrease in depreciation and amortization was due to the end of the amortization period for a previous acquisition [21][22] Question: Capacity for future acquisitions - Management expressed confidence in their ability to pursue multiple acquisitions, citing low leverage and a strong capital structure [26][28] Question: Expectations for year-end activity amidst tariff situations - Management anticipates a muted peak season but expects continued growth in Mexico and Southeast Asia as customers diversify their supply chains [30][31] Question: Target leverage for balance sheet - Management indicated a normalized target leverage of around 2.5 times, with flexibility for temporary increases for the right transactions [35] Question: Tax rate and adjustments - Management explained that the tax rate for the quarter was adjusted due to an overestimate in the prior period, resulting in a slight benefit [48][49]

Core Insights - The current global trade environment is characterized by rising tariff barriers and a complex landscape for Chinese companies expanding overseas, leading to significant changes in export structures and logistics demands [1][2][5] Trade Environment and Export Structure - The fluctuation of global tariffs, particularly changes in U.S. trade policies, has notably impacted the export paths and logistics choices for Chinese enterprises, with varying effects across different industries [2][3] - The e-commerce sector has seen a marked decline in exports due to the U.S. cancellation of tax exemptions for small packages valued under $800, which previously fueled rapid growth in Chinese e-commerce exports [2][3] - In contrast, emerging industries such as new energy and biopharmaceuticals are becoming new growth drivers for exports, indicating a shift in China's export structure towards heavier and more specialized goods [1][3] Logistics Demand and Service Requirements - The demand for logistics services is evolving from a price-driven approach to a service-oriented model, as companies increasingly require integrated and resilient logistics solutions to navigate complex international environments [5][6] - Companies are now focusing on "brand export," necessitating higher standards for overseas operations and local delivery, while facing challenges such as policy risks and cultural differences in emerging markets [5][6] Technological Advancements in Logistics - The logistics industry is rapidly advancing towards automation and smart technologies, with innovations such as AI, robotics, and IoT playing a crucial role in enhancing operational efficiency and competitive advantage [6] - DHL is actively investing in technology to improve warehouse operations and last-mile delivery, utilizing automated guided vehicles and AI models to better predict market demand and optimize transportation arrangements [6]

Core Viewpoint - The article highlights the contrasting financial performance of private and state-owned airlines in China, with private airlines achieving profitability while state-owned carriers continue to incur losses in the first half of 2025 [3][4]. Summary by Sections Performance of Airlines - All listed airlines in A-shares have disclosed their half-year reports for 2025, with private airlines such as Spring Airlines, Juneyao Airlines, Hainan Airlines, and China Express Airlines reporting profits. Spring Airlines led with a net profit of 1.169 billion yuan, making it the most profitable airline in mainland China for the first half of the year [3][4]. - Spring Airlines has maintained profitability for two consecutive years, with net profits of 2.257 billion yuan in 2023 and 2.273 billion yuan in 2024, both setting new records since the company's inception [5]. State-Owned Airlines' Struggles - In contrast, the three major state-owned airlines—Air China, China Eastern Airlines, and China Southern Airlines—reported losses of 1.806 billion yuan, 1.441 billion yuan, and 1.533 billion yuan, respectively, in the first half of 2025 [5][6]. Market Dynamics - The disparity in performance among airlines is attributed to the slower-than-expected recovery of international routes and ongoing competition in the domestic market. International passenger flights in civil aviation increased by 24.9% year-on-year in the first half of 2025 but were still down 12% compared to 2019 [6]. - The three major state-owned airlines have a higher proportion of international routes, making them more vulnerable to the sluggish recovery of international markets. In contrast, private airlines like Spring Airlines and Juneyao Airlines, which focus on routes to nearby countries, have been less affected [6]. Revenue and Cost Management - Despite the overall decline in passenger revenue, cost control has become crucial for maintaining performance. Private airlines, exemplified by Spring Airlines, have advantages over state-owned carriers in this regard [7]. Airport and Cargo Companies - Airport companies have fared better, with five out of seven listed airport companies reporting profits in the first half of 2025. Notably, Shanghai Airport and Guangzhou Baiyun Airport achieved significant profit growth of 28.14% and 71.32%, respectively [9]. - Cargo logistics companies also reported profit increases, with China National Aviation Holding and Eastern Air Logistics earning 1.24 billion yuan and 1.289 billion yuan, respectively, marking year-on-year growth of 86.15% and 0.9% [10]. Global Cargo Trends - The global air cargo demand continues to grow, with a 2.8% increase in cargo ton-kilometers in the first half of 2025. China's air cargo exports reached 2.67 million tons, up 11.6% year-on-year, with significant growth in international cargo transport [10]. - However, adjustments in U.S. tariff policies and the cancellation of small package exemptions have impacted air carriers, particularly in the North American market, which saw an 8.2% decline in exports from China [10][11].

Group 1 - The importance of Chinese enterprises in DHL's business landscape is continuously increasing, with more Chinese companies embarking on international expansion. Key industries showing rapid growth include high-tech, advanced manufacturing, and biopharmaceuticals [1] - DHL Group's 2030 strategy aligns closely with China's development strategy, focusing on investments in new energy, e-commerce, and biopharmaceuticals [1] - The new energy sector includes electric vehicles, lithium batteries, solar cells, and wind turbines, which require high levels of certification, personnel training, and regulatory compliance, representing DHL's core advantages [1] Group 2 - The pharmaceutical industry in China is transitioning from being an importer to a market with strong export demand, with Brazil and Africa identified as significant markets for Chinese pharmaceuticals and vaccines [2] - The logistics service demand from Chinese enterprises has shifted from a "price-first" approach to a need for integrated logistics services, encompassing customs clearance and last-mile delivery [2] - Southeast Asia, the Middle East, Africa, and Latin America are currently the main destinations for Chinese exports, with Southeast Asia benefiting significantly from the Regional Comprehensive Economic Partnership (RCEP) [2] Group 3 - Companies are adopting different strategies in response to tariff policies, with some pausing logistics plans until policies are finalized, while others maintain normal transport schedules due to sufficient profit margins [3] - The Red Sea crisis has lasted approximately 16 months, significantly impacting global shipping, with transport times from Asia to Europe extending by 10-14 days and 15% of global shipping capacity being affected [3] - If the Red Sea crisis eases by the second half of 2025, shipping routes and times may improve, potentially leading to a decrease in shipping rates [3] Group 4 - The domestic air freight market is highly competitive, with many companies adopting low-price strategies, resulting in low operating profit margins. Expanding into international long-haul freight is seen as a key direction for improving profitability [4] - The barriers to entry for outbound air freight are high, requiring a global network and compliance with complex regulations, which raises the business entry threshold [4] Group 5 - Global air freight demand is expected to remain strong over the next 1-2 years, particularly in the pharmaceutical and electronics sectors [6] - Despite the impact of tariff adjustments and geopolitical risks, the overall market is in a dynamic adjustment phase, with e-commerce goods from China previously driving significant air freight demand [7] - The air freight market is projected to perform strongly in 2024, driven primarily by e-commerce shipments, but may see a decline in volume starting in 2025 due to tariff fluctuations, while sea freight volumes are expected to rise [7]

Group 1 - The U.S. tariff policy is reshaping global e-commerce parcel and air-sea freight markets, affecting trade flows, supply chain strategies, and corporate cost structures [1] - There has been a significant increase in freight volume on non-U.S. routes, particularly from China to ASEAN, the Middle East, and Africa, while exports from China to the U.S. decreased by 9.9% in the first half of the year [1] - The Shanghai Containerized Freight Index has seen a continuous decline for nine weeks, and a decrease in trans-Pacific shipping prices is expected due to weakened trade demand from the U.S. in the second half of the year [1] Group 2 - Air freight demand showed a slight year-on-year increase of 0.8% in June, with significant regional disparities; U.S. freight volume decreased by 8.3%, while Asia-Pacific saw a 9.0% increase [2] - E-commerce demand has declined, leading to a decrease in air freight prices, despite a projected 14% year-on-year growth in China's e-commerce export volume for 2024 [2] - High-value sectors such as batteries and new energy vehicles continue to see growth in export volumes, with wind turbine exports increasing by 43.2% and lithium battery exports by 18.8% in the first half of the year [2] Group 3 - The expansion of Chinese biotech companies into overseas markets has increased the demand for high-value logistics, particularly for vaccine exports to Africa and pharmaceuticals to Brazil, which require strict temperature control [3]

Financial Data and Key Metrics Changes - The company reported a significant improvement in normalized earnings before tax, which increased by 61% year on year, with the strongest quarterly result in two years in Q4 FY 'twenty five [5][19] - Net loss after tax reduced by $32.5 million to $15.6 million, showing consistent improvement throughout the year [17] - Operating cash flow increased by 35% to $25.3 million, with adjusted net operating cash flow of $300,000 [21] Business Line Data and Key Metrics Changes - The freight and fuel business experienced a turnaround, with normalized earnings loss improving by 90% year on year, moving to a positive result in Q4 FY 'twenty five [11] - Warehousing faced ongoing challenges, with aggressive pricing tactics leading to reduced storage costs below pre-COVID levels [12][13] - The specialist business performed well, particularly in infrastructure projects, with a healthy pipeline for the next two years [14] Market Data and Key Metrics Changes - The company retained revenue despite low demand in a highly competitive market, with ongoing economic headwinds affecting business and consumer confidence [8][10] - The interisland ferry service disruption and extreme weather events further impacted market activity [9] Company Strategy and Development Direction - The company is transitioning from cost reduction to value creation as part of its Accelerate transformation program, which has one year remaining [6][25] - The focus is on building value in the freight business, improving warehousing performance, and enhancing customer service [23][24] - The company aims to become the preferred logistics provider in New Zealand, supported by a strong national network and partnerships [22] Management Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the timing and speed of economic recovery but expressed confidence in the company's positioning for future growth [24][25] - The sentiment among partners is starting to lift slightly, indicating potential for improved market conditions [10] Other Important Information - The company has established a new funding partnership and extended its bank facility through August 2026, ensuring adequate capital for operations and growth [20] - A significant reduction in operating expenses of $27 million was achieved, with labor savings of approximately $15 million [17][18] Q&A Session Summary Question: Will there be any months in FY 'twenty six with positive net profit after tax? - Management indicated that while they cannot specify exact months, they have a clear plan and forecast, with expectations of ramping up activity after slower months [26] Question: Is a capital raise likely given the erosion of equity and uncertain net profit? - Management stated they expect a positive EBT but are focused on ensuring adequate capital for business operations and growth [27] Question: What is the EBT range guidance for the coming year? - Management refrained from providing specific guidance due to economic uncertainty but confirmed a return to positive EBT in FY 'twenty six [28] Question: Can management provide clarity on core freight revenue and margin amidst the realignment of fuel services? - Management declined to share specific details on core freight results, citing confidentiality regarding customer relationships [29] Question: No further questions were raised during the session. - The operator confirmed there were no additional questions, concluding the conference [31]

Financial Data and Key Metrics Changes - The company reported a significant improvement in normalized earnings before tax, which increased by 61% year on year, marking the strongest quarterly normalized EBT result in two years [5][19] - Gross margin percentage improved by 4.1 percentage points, with gross margin dollars up 13.4%, indicating effective cost management and efficiency programs [6][18] - The net loss after tax reduced by $32.5 million to $15.6 million, showing consistent improvement throughout the year [17] Business Line Data and Key Metrics Changes - The freight and fuel business experienced a turnaround, with normalized earnings loss improving by 90% year on year, moving to a positive result in Q4 FY '25 [11] - Warehousing faced ongoing challenges due to increased industry capacity and aggressive pricing tactics, leading to a need for a reset in the business [12][13] - The specialist business performed well, particularly in infrastructure projects, with a healthy pipeline for the next two years [14] Market Data and Key Metrics Changes - The trading environment in FY '25 was challenging due to ongoing economic headwinds, low business and consumer confidence, and cost of living pressures [8] - Increased competitor activity and aggressive pricing were noted, particularly in the warehousing sector, leading to a glut in capacity [9][12] - Despite these challenges, there are signs of improving sentiment among partners, indicating potential recovery [10] Company Strategy and Development Direction - The company is focused on transitioning from cost reduction to value creation as part of its Accelerate transformation program, which has one year remaining [6][22] - The New Horizons roadmap aims to establish the company as the preferred logistics provider in New Zealand by FY '28 [21] - Priorities include improving performance in warehousing, enhancing customer retention, and investing in technology for data-driven decisions [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the timing and speed of economic recovery but expressed confidence in the company's positioning and readiness for growth [23][24] - The focus on gross margin improvements is expected to provide a stronger foundation for future earnings growth [24] - Management is optimistic about returning to positive normalized EBT in FY '26 [24] Other Important Information - The company has established a new funding partnership and extended its bank facility through August 2026, ensuring adequate capital for operations and growth [19][20] - A significant reduction in operating expenses of $27 million was achieved, with labor savings of approximately $15 million [17][18] Q&A Session Summary Question: Will there be any months in FY '26 with positive net profit after tax? - Management could not specify exact months but indicated a clear plan and forecast, noting that the freight and logistics sector typically ramps up after slower months [25] Question: Is a capital raise likely given the erosion of equity and uncertain net profit? - Management stated that while they expect positive EBT, they are focused on ensuring adequate capital for business operations and growth [26][27] Question: What is the EBT range guidance for the coming year? - Management refrained from providing specific guidance due to economic uncertainty but confirmed a return to positive EBT in FY '26 [28] Question: Can management provide clarity on core freight revenue and margin after the realignment of fuel services? - Management declined to share specific details on core freight results, citing confidentiality regarding customer data [29][30]

Core Viewpoint - LEGION CONSO (02129.HK) reported a decline in revenue for the six months ending June 30, 2024, and June 30, 2025, primarily due to weak market demand affecting its truck transportation and freight forwarding services [1] Financial Performance - Revenue for the six months ending June 30, 2024, is projected to be SGD 31.4 million, while for the six months ending June 30, 2025, it is expected to be SGD 29.6 million, reflecting a decrease of 5.7% [1] - The company recorded a loss of SGD 1.57 million, contrasting with a profit of approximately SGD 3.26 million for the six months ending June 30, 2024 [1]