Earnings Call: H1 2026

Aug 28, 2026

Summary

Throughput, revenue, and profit all saw robust year-on-year growth, driven by operational efficiency, cost control, and expansion in both China and overseas markets. The company maintained a strong balance sheet, stable dividend policy, and advanced digital and ESG initiatives.

Dear shareholders, investors, media friends, good afternoon. Xiao Hui from the Investor Relations department. Welcome, everyone. We are going to use a hybrid mode, combining on-site and also online participants. You can also call in or dial in over the internet. We are very happy to have our management here to meet with you. They are our Managing Director and Executive Director, Ms. Wu Yu, Mr. Chen Yipeng, our Deputy General Manager, and our Chief Accountant, Mr. Zhao Fengnian. We are going to divide our presentation into two parts. First, we will hear from the management concerning our performance and outlook, to be followed by the Q&A session. We welcome questions from all of you. Now, let's invite Ms. Wu, our Managing Director and Executive Director, to take us through our performance highlights and outlook. Everyone, good afternoon. First of all, welcome to our 2026 interim results briefing. On behalf of the company, I would like to extend our most sincere gratitude and warm welcome to everyone. Thank you for your continued support and interest. We look forward to using this opportunity today to communicate and exchange ideas with you in person. Today, we are going to cover five sections. First of all, we will talk about the financial highlights for the first half of the year. Since 2026, the global economic trade and geopolitical landscapes have undergone accelerated restructuring. COSCO SHIPPING Ports closely followed the main theme of high-quality development, advancing the construction of global hub ports and comprehensively enhancing value creation capacity and risk resilience. For the first half, our operational quality and efficiency steadily improved. I would like to share some important highlights with you. Our total throughput reached an impressive momentum of 80.2 million TEUs, representing year-on-year growth of 7.9%. Our equity throughput rose year-on-year by 7% to 24.5 million TEUs. Our revenue maintained an upward trajectory, reaching $0.91 billion, up 12.3% year-on-year. EBITDA increased by 20.6% year-on-year to $0.54 billion. Profit attributable to equity holders reached $0.23 billion, achieving year-on-year increase of 20.5%. Overall, facing external uncertainties and complex challenges, we seized market windows and continuously optimized our global terminal asset allocation. During the first half, we accelerated our expansion into emerging regional and third-party markets, intensified our mainline and feeder networks, and fully unleashed synergies between port and shipping. We deepened refined management and solidly implemented efficiency enhancement measures. Thanks to a steady rise in our lean operational performance, our continued throughput, revenue, profit attributable to shareholders all achieved simultaneous growth, successfully hedging against external risk and strategic certainty of high-quality development. Mr. Xiao will introduce our financial performance now. Thank you, Ms. Wu, for the introduction. Good afternoon to all our friends and the media and investors. We will introduce the second part of our presentation of financial performance. During the first half, amid a complex market environment, we optimized our business layout and deepened lean management, maintaining steady growth and overall operational efficiency. Key performance highlights include terminal volume and pricing growth drove the revenue up by 12.3% year-on-year. The effective cost reduction measures and improvements in operational efficiency delivered a 9.3% year-on-year increase in gross profit. Solid operational foundations boosted EBITDA to increase by 20.6% year-on-year. We enhanced profitability by a 28.5% increase. Payout ratio maintained unchanged at 40%. Dividends per share, $0.0236, an increase of 22.4%. Now let's look at revenue and gross profit margin for controlling terminals. Our operations in China remained steady, with revenue increasing by 15.4% year-on-year, while the overall gross profit margin stayed at a high level of 38.5%. Among our major terminals, three key Chinese subsidiary terminals achieved gross profit margins exceeding 40%, led by Guangzhou Nansha and Tianjin Container Terminal, both reporting an exceptional margin of 47%. Guangzhou Nansha Terminal revenue increased significantly by 14.7%, driven by rising trade demand from emerging markets such as Southeast Asia. Tianjin Container Terminal revenue rose by 19.4%, supported by a dual boost from tariff rate adjustments and increased storage income. Xiamen Terminal's revenue grew by 7.7% during the first half, driven by proactive efforts to attract multiple new shipping routes and generate incremental volume. Regarding our overseas subsidiary terminals, revenue increased by 9.1%. Piraeus Container Terminal revenue grew by 7.1% in the first half, driven by optimized tariff rates, while COSCO SHIPPING Ports (Spain) Terminals revenue increased by 11.7% as cargo volume reached a historic high since acquisition, fully demonstrating the benefits of business scale. Turning to our profitability, total terminal profit reached $234.2 million in the first half. Regarding the China region, profit reached $212.1 million, up 14.8% year-on-year. China's long-term positive economic fundamentals remained unchanged. Domestic port growth potential continues to expand, driven by national regional development strategies, including Beijing-Tianjin-Hebei region, Yangtze River Delta, Guangzhou-Hong Kong-Macao Greater Bay Area, and New International Land-Sea Trade Corridor, alongside pro-growth policies to boost domestic demand and build unified national market. Overseas terminals profit was $22.1 million. Short-term profit was impacted by newly commissioned terminals. Looking medium to long-term, we will deepen collaboration with major shipping lines, optimize our global network of ports. As economies of scale materialize, the growth potential for our overseas terminals will steadily expand. On the balance sheet, by the end of first half, our cash and bank deposits stood at $1.35 billion. Our liquidity position remains stable and healthy, providing ample runway for future growth. CapEx for the first half, $75.2 million allocated as follows: investment, $8 million, PP&E, $67 million. Our net debt to equity ratio was 20.8%, maintaining a historically low level. We will continue to leverage our low leverage advantage, optimize resource allocation, prioritize high-potential emerging markets. Regarding bank borrowing cost, we successfully reduced our average bank borrowing rate to 3.98% through proactive measures, including refinancing existing debt, optimizing our debt structure, using internal cash to pay down high-interest loans. This achievement is particularly noteworthy in the current market environment. It significantly strengthened our financial resilience and capital structure while unlocking profit potential and momentum for high-quality growth. Now, we would like to invite Mr. Chen Yipeng to present company's operational review. Thank you, Mr. Zhao Fengnian, for your detailed presentation of the company's financial performance. Good afternoon to all investors and members of the press. I shall now go over our operational performance. In the first half of 2026, our overall business achieved steady growth, with total throughput reaching 80.1 million TEUs, representing year-on-year increase of 7.9%. Container volumes at terminals in both China and overseas recorded growth. Specifically in China, total terminal throughput reached 59 million TEUs, an increase of 4.7% year-on-year, fully demonstrating the resilience of our asset operations. Moving forward, we will leverage the synergistic advantages of our dual brands, partner with major shipping lines, and continuously deepen our port shipping network layout. At the same time, we are committed to driving a comprehensive upgrade of the domestic trade supply chain, precisely guiding hinterland cargo sources to connect with emerging markets and efficiently serving the new dual circulation development paradigm. Overseas terminals total throughput reached 21.1 million TEUs, up 18%. Facing the restructuring of global supply chains, we accelerated the optimization of overseas asset structure, built synergistic network at key shipping nodes, and comprehensively enhanced the resilience and bargaining power of our international supply chain. In terms of equities throughput, it reached 24.5 million TEUs, an increase of 7% year-on-year. Regarding China region, equities throughput at our terminals reached 16.9 million TEUs, rising 4.8% year-on-year, primarily driven by growth in the Bohai Rim and Yangtze River Delta regions. Benefiting from regional integration and high value-added foreign trade export policies, we actively promoted the efficient empowerment of our marketing strategies and shipping networks. By deeply tapping into incremental cargo flows from the domestic hinterland to emerging markets, we achieved a comprehensive upgrade in our domestic and overseas integrated network service capabilities. Regarding overseas region, equities throughput stood at 7.6 million TEUs, up 12.4%. Looking ahead, we will comprehensively deepen port shipping, network synergy, and market penetration, fully solidify our global leadership position, and build a stronger core competitive barrier. During the first half, we proactively adapted to market changes and achieved steady growth in revenue per TEU. European subsidiaries saw a 2.1% year-on-year increase in revenue per TEU in EUR terms, following a modest 0.7% increase in the first quarter. Second quarter revenue per TEU accelerated significantly with a 3.1% year-on-year growth. This performance was primarily driven by the continuous upgrading of commercial strategies at Piraeus Container Terminal and the deep optimization of customer mix at COSCO SHIPPING Ports (Spain) Terminals. For our Chinese subsidiaries, revenue per TEU in renminbi terms increased 3.2% year-on-year in the first half. After a 0.4% decline in the first quarter, second quarter revenue per TEU rebounded strongly, surging 6.5%. This notable improvement stemmed from favorable foreign trade conditions and ongoing optimization of our container volume mix, with exceptional operational results delivered by the Tianjin and Nansha terminals. Regarding customer mix, supported by the deep synergy of OCEAN Alliance, volume contributions from COSCO Shipping Lines and OOCL increased year-on-year by 6.4% and 4% respectively. Additionally, volume contributions from Evergreen Marine Corporation and CMA CGM maintained positive growth momentum with a 7.9% rise. Leveraging our efficient and closely integrated port shipping network, we precisely empowered our core controlling terminals in China and Europe, fully unlocking growth potential of revenue per TEU by continuously refining our custom and cargo mix, which may solve a foundation for driving sustainable business development. As the global momentum toward energy transition and vehicle electrification accelerates, China's exports of new energy vehicles and PV products to Europe continue to exhibit a positive long-term growth trajectory. Against this backdrop, we have expedited the optimization of our global port logistics network, achieving notable progress across our key strategic projects. First, regarding Xiamen Haicang supply chain, we have maintained a high occupancy rate at our port adjacent logistics parks through targeted investment attraction. Refined management practices and cost reduction initiatives enhance warehouse utilization, comprehensively strengthening our operational capability. Our Xiamen Haicang project fully leveraged our existing port resources while fostering strong synergy with our sister companies. We continuously iterated our business models and developing diversified supply chain services. We have broadened our revenue streams and elevated our project execution capacity. In Abu Dhabi, we systematically optimize our cargo mix to closely serve the China Abu Dhabi industrial parks, while actively expanding large-scale overseas warehouse operations tailored for PV and plant construction logistics. We also successfully unlocked the interland railway corridor, upgrading our intermodal rail sea surfaces to significantly enhance the end-to-end operational capabilities. Regarding Zeebrugge CFS, we fully committed to establishing an integrated terminal plus warehousing plus distribution linkage. We aim to drive smart management to elevate our efficiency and generate economies of scale. We actively extend our footprint to high value-added segments by deeply tapping into sorting, packaging, and inventory management potential, steering our business transition from volume-driven to quality-driven. In the first half, we accelerated the integration of AI with our core port operations through multidimensional initiatives, including digital empowerment, equipment upgrade, and process optimization, driving a leap in operational scale and comprehensive efficiency. We advanced national level standardization pilots, established replicable operational templates, expand our portfolio of control terminals. Concerning the scale and commercialized smart port operation from 5 at the end of last year to 7 today. Seven controlled terminals have achieved full-scenario smart transportation deployment. In the first half, we handled 0.7 million TEUs, an increase of 25%, while average cost per TEU decreased by 10% compared to traditional trucks, progressively demonstrating cost reduction and efficiency enhancement effects. At the same time, we constructed a digital intelligent management architecture centered on port matrix, clarifying 3 core development objectives and 5 capability-building directions. During the first half, we prioritized data, middle-office integration with MIS systems, and launched the management cost per TEU model alongside a commercial billing system, significantly strengthening our terminal operational performance analysis and risk control capabilities. We will, looking ahead, transition from point-based improvement to holistic efficient realization, comprehensively enhancing the scale development of smart ports and leveraging digital intelligence transformation to empower sustainable and high-quality growth. Now, we will talk about such plans. Thank you very much. Our global network has achieved leapfrog growth in recent years. Looking ahead, we will continue to focus on emerging markets, deeply expand premium port resources, optimize regional diversification, and enhance the efficiency and reach of our core hub ports. Our key achievements for the first half are as follows. Optimizing our global footprint while balancing incremental and sustained volume growth. We made substantial progress on multiple key projects, including winning the bid for the multi-purpose terminal at the Port of Tarragona, which further solidifies our strategic hub position in the Western Mediterranean. We also actively unlocked value from existing assets to improve capital allocation efficiency and portfolio structure. Completing partial asset disposal of Jinjiang Pacific Terminal. Proactive portfolio management cycle was completed. We deepened lean operations to unlock value across the board, advanced our lean management initiatives by implementing CPI-linked and tiered tariff mechanisms in overseas commercial negotiations, achieving dynamic synergy between pricing and resource allocation through commercial flexibility. We comprehensively upgraded our global terminal cost control capabilities by establishing a granular cost benchmarking framework to maximize efficiency and capture value creation opportunities. We secured core cargo volumes to build an end-to-end supply chain ecosystem. Leveraging our port shipping integration advantages, we expanded extended services such as depots and warehousing to transform short-term volumes to long-term Sticky customer ecosystem. We also capitalized on our global terminal network to closely engage with major Chinese automakers, coordinating container specialized shipping capacities to efficiently drive containerized vehicle logistics and rural operations, thereby fully elevating our comprehensive supply chain service capabilities. We strictly adhere to disclosure rules and strengthen our investor relations. Guided by fairness, timeliness, and accuracy, we elevated our governance and our overall corporate value. Thanks to our strong terminal operations and excellent corporate governance, we earned wide recognition from the global capital markets and the public. This recognition reflects our commitment to green future, guided by our 2050 carbon neutrality vision. We focus on five pillars: governance, resilience, agility, nature, and dynamic. We integrated ESG principles into our daily operations to drive economic, social, and environmental value across our entire value chain. Building on our solid ESG foundation, we earned upgrades from major rating agencies. We were upgraded from A to AA. MSCI upgraded to BBB. CDP improved to B. Hang Seng Bank maintained our A-plus rating, and Morningstar maintained a low ESG risk level. Looking ahead, we will keep driving sustainable innovation. We remain fully committed to building a smart, green, and low-carbon port ecosystem that delivers long-term value. Reflecting on the first half, China's trading goods continued to demonstrate strong endogenous resilience and growth vitality. Total import and export value surpassed CNY 25 trillion for the first time in history during a comparable period, reaching CNY 25.47 trillion, representing an increase of 15.9%. Exports rose while imports surged by 22.1%, cementing the country's position as the world's largest trader of goods. Together with ASEAN and Latin America, we continue to deepen our exchanges. Proportion of high-value added product exports represented by new three green tech products has risen steadily, injecting new growth momentum into global port industry. According to Drewry's projection, container throughput for ports in Asia, Europe, and Latin America this year will reach 4.8%, 4.1%, and 3.5%. Global regional divergence is intensifying. Localized markets maintain robust resilience. This dynamic aligns closely with our company's terminal asset layout along core global shipping routes, fully demonstrating its strategic value. We will continue to seize global market opportunities, centering on strategic position of global hub ports and upholding the post-forward development philosophy. Guided by the primary themes of expanding our global footprint externally and deepening operational efficiency and specialization internally, empowered by the extension of port supply chains, digital intelligent transformation, and green low-carbon initiatives, we will comprehensively forge our core competitiveness for the future. We will actively integrate into Group's three development strategies: shipping plus ports plus logistics, hubs plus corridors plus networks, and investment plus construction plus operations to build a customer-centric, global leading port logistics service provider with core resources. That concludes our overall performance. Thank you for your long-term care and support for COSCO SHIPPING Ports. We will closely follow the new changes in global trade, fully ensure stability and smooth flow of logistic supply chain, and continuously improve our operational quality and efficiency to maximize long-term value for our shareholders. Let's move on to our Q&A session. Thank you, Ms. Wu, and the rest of the management for your detailed representation of the situation. We will proceed to Q&A to allow more people to raise questions. We will first invite questions from on-site participants, and then from the online platform, and then on the telephone side. To allow more participation, please only ask one to two questions per person. Can we first take on-site questions? We will pass you the microphone. Please also tell us who you represent and your name. For those joining online and on the telephone, please also tell us who you are and who you represent. Thank you. Let's first take questions from on-site participants. Thank you, members of the management. I am Ta Shang Chong from Singapore Development Bank. I am happy to be here, and thank you for your presentation. I can see what has happened to the performance of the company in the first half. I think there are quite a number of important highlights against this major backdrop. I want to ask you, in the first half, for 2026. Concerning total throughput, revenue, and net profit, we have seen year-on-year growth. Against so much uncertainty, how did you achieve that? I will first briefly respond, and then Mr. Zhao will talk about some detailed information. We can see, overall speaking, around the world, there are many uncertainties. But against this backdrop, we have seen new development opportunities for various ports. If you have been following us, you know that the utilization rate of various ports, including those in Europe and also in China. We all see very good momentum. We also see many typhoons, so we have typhoon-related measures. Our ports are getting more and more congested. From the supply side of ports, we still have plenty of room. Once that room is created, our revenue, our business level can enjoy rather healthy growth. I think that overall speaking, has shown very strong level of resilience. Every time we announce certain figures, they are always better than anticipated. On the business side, we have obtained rather good performance. This is the backdrop. Also at the group level, our teams have been developing and of course we will obtain good development opportunities for our ports. Together with other companies, we maintain very good collaboration and relationships. Since we are capable and we are efficient, we have been widely recognized by our customers, driving up our revenue. I will leave the rest to my colleague. As you have said, in the first half, the overall situation is rather complex, with plenty of uncertainties. The situation has been ever-changing. We can see mild or moderate improvement of various economies, but because of trade protectionism concerning shipping and ports, their operations, we have seen a lot of impact. As a global operator, we have faced a lot of pressure. Against that backdrop, as Ms. Wu has explained, on the business side, we have done a lot so as to ensure certainty to tackle such external uncertainties. By such efforts, we have been deepening and carrying out refined management, optimizing our asset allocation and our business operations. Indeed, we have been able to enhance our operational resilience. If you look at throughput growth of 7.9%, the total volume growth of our business has created very good improvement of our financials. The volume growth has driven 12.3% growth of revenue, and 9.3% growth for net profit, and 20.6% growth for EBITDA. That is truly outstanding performance. Looking ahead, we will continue to do well our internal work, mainly through reducing cost, increasing efficiency to enhance our revenue and create greater value to our shareholders. Thank you, Ms. Wu and Mr. Zhao. Let's see if we can take a second question on site. On-site participants, any questions? Hello. On page 12, you talk about first half concerning a certain decline. Can you offer some further elaboration? I will answer briefly. Tianjin Container Terminal has enjoyed rather good growth. Tianjin Container Terminal has gone through structural optimization of our own terminals. More capability has been placed on external trade routes. We are in this major market of Tianjin in terms of operations. We will focus more on external trade. The revenue has grown rather positively, including the profit. There are no other reasons. Thank you, Ms. Wu. Let's see if there are any questions from our online participants. The first question is from Yu Raj Hong. Can you look ahead the overall port development around the world this year? Would you like to take that? Concerning this question, perhaps I can give an answer. In the first half, domestically, we have seen rather good momentum for economic development. GDP grew by 4.7% in the first half, so the fundamentals are quite positive and unchanged. Thanks to the entire chain for container business. According to the Ministry of Transport, for the entire country, throughput growth was also 4.7%. Looking ahead, in the second half, overall speaking, we will be able to maintain a medium to lower level of operation growth. The International Monetary Fund predicted economic growth around the world will be around 3%. For advanced economies, it will be a stabilized trend at 1.7% to 1.8%. Comparatively speaking, emerging markets will see rather strong momentum for growth in the second half. It will reach 3.8%. Next year, it may reach 4.5%. According to the overall trade outlook, the World Trade Organization projects that regional diversification will undergo certain further diversification. South American, Asia exports will be rather strong. For the U.S. and Europe, overall demand will be rather stable without major changes. Based on this situation, on the supply side, for the longer term, things will stay rather optimistic, and in the second half of 2026, newly added capacity will be quite limited. In the market, there won't be much changes in terms of supply and demand. Beyond 2027, the increase will be rather substantial to port development. These will be beneficial factors. That is the overall situation. Thank you, Mr. Chen. Now we see another online question. It's from Harbor Lu from Cominvest. Facing global geopolitical issues, is that going to affect your M&A and operations? Again, such uncertainties, how do you strengthen your stability and resilience of your own supply chains? Concerning this question, I will give a brief response concerning geopolitical matters. Indeed, it is getting more and more complicated and uncertain. We need to continue on legal and compliant operations, whether it is acquisition or our own operations. As a listed company in Hong Kong and then global enterprise, we will continue to adhere to such important principles. We have a number of measures. We will continuously prepare for it, our footprint and layout around the world, maintain our collaboration with partners. Because of geopolitical issues, in terms of investment, we will be more prudent in assessing such opportunities to ensure that they are all legal and compliant. We will continuously do well our global port layout. That is on the investment side. In terms of operations, we will track the demand of our customers, maintain flexible adjustment to tackle external uncertainties. Because of geopolitical issues, sometimes crises may create opportunities. With flexible adjustments to operations, we will identify certain opportunities for us. We will also look into diversified markets while upholding our traditional strength. We will also look into emerging markets, third-party markets, and enhance the resilience of our supply chain. Through continuous optimization of our operational efficiency and capability, we can enhance our capability to protect our port operations. Although we are going to adopt such measures when we make overseas investments, we will continuously face certain difficulties and challenges. But there are also opportunities. We will continuously pay close attention to hub developments and regional developments and continuously identify in African markets and also Southeast Asian markets to see if we have any new opportunities, striving for the best returns to our shareholders. Thank you, Ms. Wu. Next question from online participant, from Henry Huang. Please review and talk about the throughput for the 4 quarters in the year. Thank you. I will answer that question. As we have mentioned in the first half, global economy was quite positive. Chinese economic growth showed good resilience. From Drewry's report and projection this year, first half global port throughput would reach 2.8% growth. To a port operator, our total throughput year-on-year growth was 7.9%. This increase is better compared to the average figure in the industry. Looking ahead into the second half, while there would be a period affected by geopolitical matters and tariff movements. Judging from what happened 2 years ago, our inventory level will return to a normal level. Uncertainties driven by policies will gradually be digested by the market. So in the second half, our whole year throughput will remain a growth of 3%. For regional diversification, it may intensify in Europe, Asia, North America, Latin America, and Southern Asia. Compared to other regions, they will maintain a high level. The growth will be 4.8%, 4.1%, 3.7%, 3.5%, and 4.5% respectively. Now focusing on China ports. According to a projection, 2026 coastal port throughput will reach 350 million TEU, global level 510 million. This is the first year for the new 5-year plan, so the port industry in China is hopeful of certain important corridors being constructed, and there will be certain medium to longer term policy-related premium as well. Let's take the next question from Maggie Wong, Singapore Development Bank. MIS and EAM systems, what is the utilization situation at the moment, and how do you enhance efficiency and drive down the cost? Concerning this question, I will provide you with an answer. MIS system in the company, beginning from the construction and commissioning, the operation has been quite stable. Multi-scenario calculation has created some value. Data analytics and optimization has been greatly enhanced. We're also, at the same time, moving forward the second phase for EAM system. All controlling terminals have been placed on this system. For those overseas in Abu Dhabi and Chancay have also been brought online. If you look at these terminals, their operation and also backing up inventory, we see very effective measures. Our equipment utilization rate has been greatly advanced. Downtime is reduced by 7.3%. So we could say EAM systems use has created very good outcome. Thank you. Thank you, Mr. Chen. Now let's take a question from Temple Asset Management, Moruyi. The question is: 2026 first half CapEx is mainly going toward what areas? For the whole year, any changes for the CapEx level? Any M&A developments? Any potential targets, directions? Concerning this, if you look at the CapEx for first half of the year, USD 75.1 million on fixed asset investment, USD 66 million odd. So it is about grading certain terminal facilities. For example, in Guangzhou, Xiamen, Wuhan, and Spain. The second part, it is about headquarter investment. If you look at the full year CapEx projection compared to the budget at the beginning of the year, we made some adjustments. After adjustments, full year budgeted CapEx, $756 million. It is also divided into fixed asset, $497 million for fixed assets upgrading and addition in Peru, Nansha, Spain, et cetera. The second part, it is about equity investment at the capita level, about $160 million. This is annual plan, and it is the cap or the maximum level. If you look at investment projects progress, in terms of our international layout, which is an important strategy, we have chosen certain projects to complete our global footprint while enhancing our efficiency. Certain regional markets, emerging markets, and even third-tier markets, so that they will be note type terminals. We have continuously been doing this. When we have a confirmed acquisition target, we will make the necessary announcement. Another question from Chen Yufeng. For the shipping industry, where does the potential lie, and which region or routes do you think more positively about? Well, allow me to answer this. Shipping industry is about 90% of the transportation for global trade. We still think it is very positive. Since COVID, we have seen some structural changes, sometimes exceeding our expectation. We have also seen that in terms of overall regional markets and the routes, we have seen many changes. We have done a lot of adjustments. Things are ever changing. Geopolitical issues will also drive people to reconsider certain shipping routes and redesign them. Our next step forward will refer to import and export figures. We will look at emerging markets, especially Southeast Asia, Africa, Southern America. There are still plenty of opportunities. Our future investments and M&A opportunities will identify such opportunities in such regions. Next question from Chen Yufeng. CFS warehouse is about to be saturated. What means are you going to adopt to increase revenue? How are you going to improve the Zeebrugge CFS, Abu Dhabi CFS operational efficiency? All right. I will take that question. Our company will use the following ways to enhance our warehouse utilization and profitability. For Abu Dhabi, we are going to use four measures. We will optimize our member system to better serve the logistics parks and free trade zones and the enterprises in them, develop PV and factory building, large-scale projects. Secondly, we are going to set up this Middle East supply chain center so as to better deploy our other resources, PV for ADNOC and Hainan projects. Thirdly, we rely on real-world strategic resources and partners to further develop rail-to-sea and sea-to-rail synergies. Number four, we will propel forward the second phase of Abu Dhabi project to optimize warehouse utilization and efficiency. Concerning Zeebrugge, we will mainly rely on logistics shipping plus port to create terminal plus warehouse plus capabilities to drive forward our revenue structure. We are going to create new opportunities together with coastal terminal resources so that we can achieve synergistic strength. So that we can create a more competitive supply chain and enhance our overall operational capability. Thank you, Mr. Chen. Because of time constraints, we will take the final 2 questions. Let us take questions from the telephone line. Please tell us who you are and who you represent, and then read your question. Operator? If you want to ask a question, please press star. The first question is from Chisholong. Can you hear me? Yes? Congratulations for the good performance. Can you talk about your future plans? How are you going to ensure long-term development and create long-term value for the shareholders? I will respond to that. It's about dividend payout. Well, actually, the sound was not very clear. We adhere to a stable payout policy as proven by our track record. Our policy is to maintain stability, to provide reasonable return to shareholders, and also coordinate that with our long-term growth. I think the participant has already talked about that. We have to balance the two sides. Our dividend policy has been maintaining a rather stable trend. Interim payout is still at 40%, and we also offer scrip options, which is in line with previous practices. We have done analysis, 40% of dividend payout is considered a reasonable level. We want to convey to the market our belief that it is important. The aspiration of our shareholders is important to us, and we also want to share the results of our development with them. But at the same time, we also need to take care of future strategic development and operations. Based on our performance in the first half, net profit has been growing and very good growth concerning per share performance. So in terms of dividend payout per share, it is also seeing some very strong growth. This is a multi-win situation. Looking ahead, just like in the past, we will consider our development, financial situation, external factors to cautiously assess the payout level and policy. Thank you. Thank you, Mr. Zhao. Because of time constraints, we will take the final question. Operator? Congratulations for the very good performance in the first half. I also see that you are attaching more and more importance to ESG. How are you going to tackle climate change? Also about information disclosure. Thank you. I will briefly respond. Later on, we have a number of measures concerning our controlling terminals and the regions. We have done some climate change impact assessment. We have relied on certain information disseminated by the United Nations so as to set three levels of risks for our assets. We've done in-depth analysis so that we can better understand, in extreme climate situations, what challenges we are facing, so that we can better understand some opportunities attached to low carbon transformation. Right now, we are looking at certain important risks, including flooding and typhoons. Concerning electrification of our assets, we continue to move forward so that we can reduce reliance on fossil fuel through digitalization and green low carbon transformation. We continuously enhance our efficiency. We rely on digital twin to real-time monitor our efficiency, combining AI and big data effectively lower our operational cost. In terms of carbon emission, upstream/downstream analysis have been conducted. Concerning our downstream customers, we have launched a number of emission reduction measures, for example, the supply of green fuel. These also represent opportunities. We will move forward with more green transition. We'll continuously to uphold sustainability principles to tackle ESG disclosure and also tackle climate change to meet aspiration of our investors and realize better development of the company. Thank you, Ms. Wu. Because of time constraints, that's the end of today's Q&A session. If you have further questions, please contact our investment relations department. Thank you again for your long-term care and support. We look forward to meeting with you next time. Thank you very much.