Sinotrans (598) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB 50.52 billion, down 10.42% year-over-year, with net profit attributable to shareholders at RMB 1.95 billion, remaining stable despite global uncertainties and weak domestic demand.

• Dividend payout ratio increased to 54.2%, with an interim dividend of RMB 0.145 per share approved, totaling RMB 1.04 billion, and potential to exceed 70% if Loscam International divestment completes.

• Operations remained stable with notable progress in internationalization, digital transformation, and green logistics initiatives.

• Net cash flow from operating activities improved to an inflow of RMB 168 million from an outflow of RMB 1.65 billion in 1H 2024.

• Significant asset revitalization included the issuance of China’s first central SOE asset-based logistics REIT, raising RMB 1.31 billion.

Financial highlights

• Operating income: RMB 50.52 billion (-10.42% YoY); net profit attributable to shareholders: RMB 1.95 billion (+0.08% YoY).

• Dividend payout ratio reached 54.2%, including share repurchases.

• Overseas business contributed up to 18% of total profit, and sea freight forwarding accounted for 76.7%.

• Net assets attributable to shareholders: RMB 40.17 billion (+1.51% from end-2024); total assets: RMB 80.95 billion (+4.86%).

• Net cash flow from operating activities was negative RMB 1,650 million, but improved to an inflow of RMB 168 million.

Outlook and guidance

• Focus on high-end, international, digital, and green development for the remainder of 2025.

• Strategic resource deployment in key industries and regions, with emphasis on Southeast Asia, Europe, Middle East, and Africa.

• Anticipates stable or improved payout ratio, potentially exceeding 70% if Loscam International divestment completes.

• Continued emphasis on cost control, asset revitalization, and cash flow management.

• Strategic plan for the 15th Five-Year Plan is being prepared.