1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - The "peak season" before the 2025 National Day Golden Week was lackluster. Ship operators withdrew an additional 544,000 TEU from the US and European routes in the past month, and the suspension of sailings by alliances increased significantly from W40 to W43, leading to an overall decline in shipping capacity [4]. - In the long run, when ship operators' stock prices fall from their highs, adjustments in operating strategies may make route layouts more complex and variable. A decline in the comprehensive profitability of routes will definitely prompt ship operators to change their operating strategies [4]. - The profitability of ship operators continued to deteriorate in the second quarter of 2025, which may affect their route capacity layout and thus freight rates [41]. 3. Summary by Related Catalogs 3.1. Research Summary and Market Outlook 3.1.1. Research Summary - A cross - border e - commerce enterprise in South China has more than 50% of its cargo volume in the European and American regions. The impact of US tariffs on its exports is not significant. Before and after Trump's potential presidency, the enterprise increased inventory in advance, with a significant increase in shipping volume. Currently, the long - term agreement price is higher than the spot freight rate. The enterprise plans to transfer 30% of its remaining exports to Vietnam by the end of the year, with a total of 90% of its goods exported from Vietnam [2]. - A freight forwarding enterprise in South China mainly operates Southeast Asian and West African routes. Since 2025, the company's shipping volume has increased by 30% year - on - year, but due to overcapacity and falling freight rates, its revenue has only increased by 10%. The company uses a "30% direct shipping + 70% transshipment" model for exports to the US [3]. - A port in South China has seen an increase in the number of US routes after the US imposed tariffs, bringing an increase in shipping volume. The shipping capacity of Southeast Asian and West African routes has also increased significantly. In the first eight months, the port's container throughput exceeded 2000 TEU, with more than half being ocean - going container transportation [3]. 3.1.2. Market Outlook - In the long run, the adjustment of ship operators' operating strategies may make route layouts more complex. The profitability of a single European route has limited decisive influence on ship operators' profitability. Even if the price drops, it may not change the overcapacity situation, but a decline in comprehensive route profitability will prompt ship operators to change strategies [4]. 3.2. Research Background - As of August 12, 2025, Trump extended the China - US tariff truce period by 90 days to November 10. Currently, the US has a 30% tariff cap on Chinese imports, and China has a 10% tariff cap on US goods. The two sides continue to negotiate [5]. - In 2025, there were multiple rounds of trade negotiations between China and the US on various topics such as soybean purchases, Boeing parts purchases, and restrictions on technology product sales [5]. 3.3. Research Objects and Conclusions 3.3.1. A Large Cross - border E - commerce Enterprise in South China - Before the National Day, the enterprise's inventory situation was similar to the previous two years. Affected by tariff policies, the enterprise stocked up in advance, and the procurement volume in August was normal [22]. - The enterprise builds factories in Vietnam and Thailand to avoid US tariffs. It is expected that 90% of US orders will be produced in Vietnam by the end of the year. The production cost in Vietnam is 6% - 7% higher than in China [23]. - The European market accounts for 20% - 30% of the enterprise's sales, with the German market growing rapidly. The enterprise has increased advertising and marketing investment in the European market [24]. - The freight rate of European routes has been continuously falling, with the price of small containers dropping to over $1000 and large containers below $2000 [25]. 3.3.2. A Freight Enterprise in South China - The enterprise is a leading freight forwarder in South China, mainly focusing on Southeast Asian routes. It has a long - term contract with shipping companies, with advantages in guaranteed cabin space and stable prices [27]. - The enterprise uses a combination of long - term agreement and spot prices for booking, with the long - term agreement price accounting for 50%. Its sales increased by about 10% this year, lower than the expected 20% [29]. - The uncertainty of China - US trade is the biggest pain point. Global freight rates are generally falling, and the profit margin of the freight forwarding industry is extremely low [30]. - The enterprise's Southeast Asian cargo volume has increased by 30% - 40% this year, mainly due to the rise of cross - border e - commerce, industrial transfer, and increased domestic demand in Southeast Asia [31]. 3.3.3. A Port in South China - The port's overall performance is stable. Last year, it completed a total cargo throughput of about 592 million tons, with foreign trade throughput of about 150 million tons, a year - on - year increase of about 5.5%. The container throughput exceeded 25 million TEU, with foreign trade container volume of about 11.8 million TEU [36]. - The port's traditional advantageous routes are Southeast Asian and African routes. The Southeast Asian route has seen significant cargo volume growth this year, and the US route has also increased in both cargo volume and the number of routes [37]. - The port has advantages in location, facilities, and cooperation with shipping companies. It has a mature process for route opening, a clear fee structure, and a high - planned operation [38][39]. 3.4. Ship Operators' Profitability and Operating Strategies - In the second quarter of 2025, the total EBIT of major ship operators was $2.73 billion, lower than the same period from 2021 - 2024 and slightly higher than the same period in 2020. The operating profitability of most ship operators has weakened since 2021 [41]. - The "peak season" during the National Day Golden Week in 2025 was lackluster. Ship operators withdrew additional capacity from US and European routes, and the suspension of sailings by alliances increased significantly from W40 to W43 [4][41].

Core Viewpoint - The launch of the Container Shipping Index (European Route) futures at the Shanghai Futures Exchange serves as a new risk management tool for the shipping industry, helping enterprises manage market volatility and enhance competitiveness [1][3]. Group 1: Impact on Foreign Trade Enterprises - The Container Shipping Index (European Route) futures provide stability in shipping costs, addressing the concerns of foreign trade enterprises like Shandong Laiwu Taifeng Food Co., Ltd., which previously faced unpredictable shipping costs due to market fluctuations [3][4]. - By utilizing the futures, Taifeng Food was able to hedge against rising shipping costs, resulting in a net additional payment of only 8,000 RMB instead of 40,000 RMB due to price increases in the spot market [5][7]. Group 2: Benefits for Freight Forwarding Companies - Freight forwarding companies, such as Qingdao Taize International Logistics Co., Ltd., have gained a competitive edge by using the Container Shipping Index (European Route) futures to manage risks associated with price volatility [8]. - The futures have allowed these companies to engage in hedging transactions, effectively avoiding price fluctuations and even generating profits during periods of rising shipping rates [8]. Group 3: Market Performance and Adoption - Since its launch, the Container Shipping Index (European Route) futures have demonstrated strong market performance, with a total trading volume of 61.0491 million contracts and a trading value of 5.28 trillion RMB over two years [10]. - The futures have been resilient during significant market disruptions, such as the Red Sea crisis and U.S.-China trade tensions, indicating their effectiveness as a financial derivative [10]. - Despite the positive impact, there remains a need for greater market awareness and education regarding the futures, as many potential users still express skepticism about their benefits [10][11].

Core Viewpoint - The standardization of FBA first-leg logistics services in the Jieyang region significantly impacts operational efficiency for cross-border e-commerce sellers, with a focus on the complete logistics process from order receipt to delivery at Amazon warehouses [1][6]. Group 1: Standardized Service Process Framework - The standardized service process for Jieyang FBA first-leg logistics includes five core steps: order receipt and plan formulation, collection and transportation, port operations, overseas customs clearance and delivery, and handover to Amazon warehouses [3]. - The logistics provider, Kaiqi Supply Chain, offers a one-hour pickup service and ensures rapid consolidation of goods in the Pearl River Delta distribution center [3]. - For North American FBA sea freight, the overseas customs clearance and delivery process achieves a 98% punctuality rate through partnerships with top ten customs clearance companies [3]. Group 2: Key Operational Nodes - The core operational nodes of Jieyang Amazon FBA logistics include three quality control points: transparent pricing, an exception handling mechanism, and a data synchronization system [4]. - Kaiqi Supply Chain's intelligent pricing system maintains a billing discrepancy rate within 3% for a furniture company in Foshan [4]. - The logistics tracking system's integration with Amazon's system contributes to a 98% delivery punctuality rate, supported by dynamic space management and same-day delivery mechanisms [4]. Group 3: Differentiated Features of Professional Services - The professionalism of Jieyang first-leg logistics providers is reflected in the completeness of value-added services, such as Kaiqi Supply Chain's one-piece drop shipping service, which includes warehousing, unpacking, and labeling [5]. - The company offers a seven-day free storage period, exceeding the industry standard by two days, and supports flexible cargo allocation through self-loading functions, improving consolidation efficiency by 30% for a Zhejiang brand [5]. - Customized solutions for high-value products and seasonal items help reduce logistics costs by 18% and complaints from 5% to 0.3% for a Guangzhou cross-border e-commerce company [5]. Group 4: Practical Suggestions for Process Optimization - Sellers can enhance the efficiency of Jieyang FBA first-leg logistics by selecting service providers with full-process management capabilities, such as Kaiqi Supply Chain's Ship Track certification [6]. - A "sea freight + air freight" combination mode is recommended for regular replenishment and new product launches to control costs and optimize timeliness [6]. - Prioritizing platforms with intelligent systems can provide automatic alerts for potential delays three days in advance [6]. Group 5: Industry Trends - The FBA first-leg logistics service process in Jieyang has formed a standardized system, with professional service providers like Kaiqi Supply Chain offering predictable and controllable logistics services through dynamic pricing models and intelligent tracking systems [6]. - The customer retention rate for these services has remained above 90% for five consecutive years, indicating the value of professional services [6]. - The industry's future direction is towards digital upgrades, with a focus on standardization and intelligence in service processes [6].

Group 1 - The international procurement market and Chinese enterprises are currently cautious, but this does not affect the proactive response of foreign trade professionals and the diversification of market expansion [1] - The Shanghai Export Container Freight Index has dropped nearly 30% from its peak on June 6, with a continuous decline for seven weeks [2] - The shipping rates to the US have significantly decreased, with rates to the West Coast and East Coast dropping by over 60% and 50% respectively since their recent peaks [2][3] Group 2 - The traditional foreign trade peak season, typically starting in August, is currently in a state of observation due to the impending end of the 90-day tariff transition period [2][3] - There is a noticeable lack of signs indicating a recovery in demand, with many logistics companies reporting no significant increase in demand or cargo volume [3][4] - The recent trade agreement between Vietnam and the US has altered some companies' shipping strategies, leading to a decline in the attractiveness of Vietnam for transshipment [6] Group 3 - The overall market sentiment is cautious due to tariff fluctuations and economic downturn pressures, with ongoing discussions between China and the US aimed at stabilizing trade relations [4] - The volume of container freight from China to Vietnam has surged significantly, while freight volume to the US has declined, indicating a shift in trade patterns [7] - Chinese exports to Vietnam have increased by 21.0% in the first half of the year, outpacing growth rates to ASEAN and overall export growth [7] Group 4 - Despite the current challenges, foreign trade companies are focusing on enhancing supply chain resilience and expanding international layouts as a long-term strategy [8] - Some companies are transitioning from product export to industry expansion, establishing local manufacturing and service networks in overseas markets [8]

Group 1 - The U.S. has eliminated the de minimis exemption for goods valued at $800 or less exported from mainland China and Hong Kong, requiring a 120% tariff on the goods' value or a fixed fee of $200 for postal shipments [1] - Tru Identity's CEO Hugo Pakula highlighted a significant loophole in the U.S. postal system, allowing Chinese shippers to exploit postal channels for shipping goods at an unprecedented scale, resulting in losses of "hundreds of millions or even tens of billions" of dollars for U.S. Customs and Border Protection (CBP) [1][7] - Pakula explained that the CN22 customs declaration form, which is required for postal shipments, allows for optional disclosure of the country of origin, enabling shippers to avoid tariffs if they do not provide this information [5][7] Group 2 - Many large brands, particularly from China, are reportedly taking advantage of this loophole, with some shippers using transshipment methods to circumvent tariffs by routing packages through places like Singapore or other locations outside China [5][7] - Pakula noted that postal companies are aware of this situation but are indifferent due to increased business volume and profits, while CBP is highly concerned about the revenue losses [7] - CBP has the authority to take action against this loophole but has not yet done so, as they are seeking effective solutions, potentially involving private sector collaboration, to address the issue [8]

Core Insights - The article highlights a significant crackdown on a smuggling network in Central Europe, centered around the Piraeus port in Greece, leading to the largest tax fraud case in EU history, amounting to €700 million [2][4]. Group 1: Smuggling Network and Operations - The smuggling operation involved mislabeling high-value electric bicycles as low-tax components, resulting in an 80% reduction in declared value [4]. - The criminal group utilized Bulgarian shell companies to apply for Greek VAT numbers and fabricated transaction records to evade taxes [4]. - Systemic corruption was revealed, with two Greek customs officials arrested and €4.5 million in cash found in customs offices [4]. Group 2: Regulatory Response and Impact - The EU is implementing a comprehensive regulatory framework to combat smuggling, including the use of AI systems for real-time monitoring of transactions on major e-commerce platforms [4][6]. - New regulations have led to a significant increase in operational costs for freight forwarding companies, with a 42% rise in compliance costs due to enhanced due diligence requirements [6][7]. - The time for document review has increased from 2 hours to 8 hours, causing a paralysis in the freight forwarding industry [6]. Group 3: Market Shifts and Adaptation - The crackdown has led to a surge in inquiries for the China-Europe Railway Express, with a 210% increase in demand for routes like Xi'an to Munich [9]. - Companies are adapting by utilizing new trade models, such as the 1039 market procurement trade model, which allows for VAT exemptions on shipments under $150,000 [9][11]. - Major logistics firms are offering compliance packages to help businesses navigate the new regulations, with some reporting a 40% increase in orders due to their established compliance practices [9][11].

Core Viewpoint - The announcement of new tariffs by the U.S. on goods from 70 countries, with rates ranging from 20% to 30%, has created significant turmoil in the foreign trade sector, prompting businesses to reconsider their strategies in the U.S. market [1] Group 1: Tariff Impact on Trade - The U.S. will impose tariffs of 20%-30% on goods from 70 countries and a 10% baseline rate for 100 countries, with Vietnam facing a staggering 40% tariff on transshipment goods [1] - Businesses are divided on how to respond, with some advocating for compliance and market retention, while others suggest pivoting to alternative markets [1][2] Group 2: Strategies for Compliance - A Zhejiang toy exporter calculated that raising prices by 25% could lead to a 30% loss in orders, but investing 300,000 in origin certification could reduce the effective tax burden to 12% [1] - A logistics manager in Shenzhen reported helping 30 companies adjust their shipping strategies to reduce tariffs by changing routes, despite a 5% increase in clearance costs [1] Group 3: Market Diversification - Some businesses are opting to exit the U.S. market, with a ceramic export manager reporting a shift to the Middle East after losing profitability due to tariffs [1] - Data indicates that in 2024, the U.S. will account for 16.5% of global imports, while Southeast Asia, the Middle East, and Africa combined will represent 32% [1] Group 4: Challenges and Risks - The compliance route faces challenges such as a lengthy six-month certification process, raising concerns about potential policy changes [5] - The alternative market strategy may struggle with longer payment terms in Southeast Asia, which could impact cash flow for small and medium enterprises [5]

Core Viewpoint - The company has successfully navigated a challenging year by implementing a three-year development plan, focusing on market reforms, enhancing core capabilities, and improving risk control systems, which has laid a solid foundation for achieving its strategic goals. Meeting Guidelines - The company has established a secretariat for organizing the shareholder meeting and ensuring the protection of shareholders' rights [2][3]. - Shareholders have the right to speak, inquire, and vote during the meeting, which will utilize both communication and online voting methods [2][3]. Financial Performance - The company reported a revenue of 1.828 billion yuan, a decrease of 5.20% year-on-year, while the net profit attributable to shareholders increased by 30.28% to 197 million yuan [6][7]. - The net profit after deducting non-recurring gains and losses was 141 million yuan, reflecting a slight increase of 0.51% [6]. Business Development - The company's main business showed signs of recovery, with significant growth in the business vehicle market and a notable increase in taxi services [7]. - The pre-prepared food business expanded significantly, targeting the corporate welfare market and developing products around consumer scenarios [7][12]. - The cold chain logistics business improved its operational performance through better resource management and standardization [13][14]. Key Business Initiatives - The logistics company, Jin Hai Jie Ya, achieved AEO certification, enhancing its operational efficiency and service quality in international freight forwarding [8][9]. - The air freight volume increased by over 20% compared to 2023, while sea freight remained stable [8][9]. - The company has expanded its customer base in various sectors, including new energy vehicles and semiconductors, through strategic partnerships and service enhancements [9][10]. Future Plans - The company aims to continue its market-oriented reforms and digital transformation, focusing on strengthening its core competencies while expanding its food supply chain business [18][19]. - Plans include enhancing integrated operations in sea and air transport, optimizing capacity procurement, and expanding direct customer development [19][20]. - The company will also focus on improving its food supply chain capabilities and expanding its market presence through digital initiatives and strategic partnerships [21][22].

Summary of Conference Call Records Industry Overview - The records primarily focus on the **cross-border e-commerce logistics industry** and its response to recent **tariff policies** affecting trade with the United States [1][2][3][4]. Key Points and Arguments 1. **Logistics Cost Increase**: Cross-border e-commerce logistics costs have risen by **4-8 RMB per kilogram** (approximately **1 USD**), but merchants have not fully passed this cost onto end consumers, with some products even seeing price reductions due to promotional activities [1][2]. 2. **Optimistic Outlook**: Cross-border e-commerce companies maintain an optimistic view, believing that the U.S. supply chain will struggle to keep pace in the short term, and that U.S. consumer spending remains strong. They plan to absorb tariff increases through price hikes, cost-sharing, and reduced profit margins [1][3]. 3. **Impact of Tariff Trade War**: The tariff trade war has significantly impacted U.S. freight forwarding companies, with a **30% to 50%** drop in order volumes from early April, leading to reduced revenues and underutilized employee workloads [1][8]. 4. **Inventory Levels**: U.S. retailers, such as Walmart and Target, have inventory levels that can sustain operations for about **two months**, indicating that May to July could be critical for restoring trade relations [1][9]. 5. **Adaptation Strategies**: Some logistics companies are adapting to tariff changes by splitting customs declarations to lower overall tax rates, which has enhanced their professional capabilities and funding abilities [1][6]. 6. **Shipping Rate Trends**: Shipping rates on the U.S. West Coast remain relatively stable, while rates on European routes have slightly decreased. The Shanghai to Singapore route has seen a slight increase in rates [1][11][12]. 7. **Long-term Production Shifts**: Some capable sellers may consider relocating production to other countries and expanding into European markets as a long-term strategy [1][4]. 8. **Pressure on Small Traders**: Small U.S. traders are under pressure due to strict contract terms with large demand parties, which require them to absorb increased tariff costs [1][7]. 9. **Future Shipping Dynamics**: The shipping market is expected to see a decline in U.S. inbound volumes from May to July, with ongoing negotiations for long-term contracts facing uncertainty due to tariff impacts [1][15][20]. Additional Important Content - **Tariff Policy Effects**: The current **145% tariff policy** has not fully manifested in sales yet, as merchants have sufficient inventory to maintain stable sales and prices temporarily [2]. - **Logistics Responsibility Shift**: Some importers are shifting from **FOB** to **CIF** or **DDP** terms, increasing the logistics responsibilities of domestic manufacturers [1][5]. - **Market Adjustments**: Shipping companies are making small adjustments in capacity management, such as changing sailing frequencies and routes, but no large-scale changes have been implemented [1][14]. - **Oil Tanker Market Outlook**: The oil tanker market is expected to stabilize and improve, with current rates for VLCC at approximately **55,000 USD** [1][19]. This summary encapsulates the critical insights from the conference call records, highlighting the challenges and strategies within the cross-border e-commerce logistics sector amid changing tariff landscapes.

Group 1 - The foreign trade industry is currently experiencing one of its most chaotic periods due to fluctuating tariff policies and economic pressures [1][3][8] - The Trump administration has imposed tariffs as high as 245% on certain Chinese goods, causing significant anxiety among foreign trade workers [2][8] - Many foreign trade companies are struggling to maintain operations amidst rising costs and changing regulations, leading to innovative strategies to survive [3][12][27] Group 2 - Chinese factories are using platforms like TikTok to expose the significant markup on luxury goods produced in China, revealing that actual production costs are much lower than retail prices in the West [5][9][10] - The rising cost of living in the U.S. has led to public outrage as consumers face skyrocketing prices for basic goods, such as eggs priced at $11.99 for a dozen [6][12] - Some consumers are calling for direct purchasing options from factories to bypass middlemen, indicating a shift in consumer behavior [10][11] Group 3 - The foreign trade sector is adapting to the new tariff landscape by exploring alternative shipping methods and markets, including transshipment through other countries [30][34] - There is a growing trend of Chinese companies establishing factories in Southeast Asia to mitigate the impact of U.S. tariffs, with over 400 companies reportedly investing in Vietnam alone [38][39] - The industry is facing challenges with compliance and documentation for transshipment, as U.S. policies are tightening scrutiny on goods originating from China [35][36] Group 4 - Some companies are finding opportunities amidst the chaos, with certain businesses experiencing an increase in orders as competitors struggle to adapt [41][56] - Companies are adjusting their product lines to focus on in-demand items that are less affected by tariffs, demonstrating agility in response to market changes [44][46] - The overall sentiment in the industry is one of cautious optimism, with a recognition that adaptability and vigilance are key to navigating the current landscape [57]