Cosco Shiping Specialized Carriers Co., Ltd. (600428.SS): analyse SWOT

Dans le monde dynamique de l'expédition, la compréhension de la position d'une entreprise est cruciale pour saisir les défis et saisir des opportunités. Cosco Shipping Specialized Carriers Co., Ltd. se démarque avec sa flotte robuste et sa portée mondiale, mais fait face à des obstacles uniques. Cette analyse SWOT plonge profondément dans les forces, les faiblesses, les opportunités et les menaces qui façonnent le paysage stratégique de l'entreprise, offrant des informations qui pourraient avoir un impact sur les décisions des investisseurs et la dynamique de l'industrie. Lisez la suite pour explorer comment Cosco Shipping se positionne dans cette arène compétitive.

Cosco Shiping Specialized Carriers Co., Ltd. - Analyse SWOT: Forces

COSCO SPEING Specialized Carriers Co., Ltd. fonctionne avec un vaste réseau mondial qui comprend plus que 100 bureaux mondial. L'entreprise possède une flotte dédiée de plus 50 navires spécialisés, qui comprend des porte-élévateurs lourds et des vaisseaux semi-submersibles, ce qui lui permet de servir efficacement diverses régions.

Dans le domaine de l'ascenseur lourd et du transport de marchandises, COSCO Shipping a établi une solide expertise. En 2022, la société a géré approximativement 3,5 millions de tonnes de la cargaison du projet, qui reflète un taux de croissance de 15% en glissement annuel. Cette compétence spécialisée leur permet de répondre aux exigences logistiques complexes, en particulier dans des industries telles que la construction, l'énergie et l'exploitation minière.

L'organisation parentale de l'entreprise, Cosco Shipping Holdings Co., Ltd., fournit un soutien substantiel, résultant en des économies d'échelle importantes. En février 2023, la flotte combinée de Holdings d'expédition Cosco se dresse 1 700 navires, qui consolide les coûts opérationnels et augmente les puissances de négociation avec les fournisseurs. Cette échelle est essentielle dans la minimisation des dépenses opérationnelles et l'amélioration de la rentabilité.

En outre, la navigation COSCO a cultivé une forte réputation de marque dans le secteur de la navigation, renforcée par l'engagement de l'entreprise envers la fiabilité et la sécurité. Selon un 2022 Enquête sur la satisfaction du client, sur 85% Des clients ont déclaré avoir confiance en la capacité de Cosco Shipping à livrer des marchandises à temps et en bon état. Cette fiducie se traduit par des partenariats à long terme et la rétention des clients, ce qui est vital dans une industrie hautement compétitive.

Cosco Shiping Specialized Carriers Co., Ltd. - Analyse SWOT: faiblesses

COSCO SPEING Specialized Carriers Co., Ltd. fait face à plusieurs faiblesses qui pourraient avoir un impact sur son efficacité opérationnelle et son performance financière.

Coûts opérationnels élevés en raison des besoins d'expédition spécialisés

La nature spécialisée des opérations de Cosco Shipping entraîne des coûts opérationnels plus élevés par rapport aux compagnies maritimes générales. Les dépenses en capital pour les navires et l'équipement spécialisés sont importants, avec une valeur de flotte estimée à environ 3,1 milliards USD En 2023. 34% du total des revenus, ce qui peut souligner la rentabilité pendant les ralentissements de la demande d'expédition.

Dépendance à l'égard des conditions commerciales mondiales et des cycles économiques

La livraison COSCO dépend fortement de la dynamique du commerce mondial. En 2022, la société a signalé un 12% de baisse Dans la demande de transport en conteneurs en raison de ralentissements économiques mondiaux exacerbés par les tensions géopolitiques et l'inflation. Cette exposition aux cycles économiques rend l'entreprise vulnérable; Pendant les périodes de ralentissement, les revenus peuvent diminuer considérablement, ce qui concerne les flux de trésorerie et les capacités opérationnelles.

Flexibilité limitée dans la flotte en raison de la spécialisation

La spécialisation de l'entreprise dans les élévateurs lourds et les cargaisons de projet limite la flexibilité opérationnelle. À partir de 2023, approximativement 78% de la flotte est dédiée à des types spécifiques de fret, ce qui limite la capacité de s'adapter à l'évolution des demandes du marché. Il en résulte des temps d'arrêt pour les navires qui ne sont pas utilisés, ce qui entraîne des revenus perdus. Le taux d'utilisation des navires spécialisés a été signalé à 65% Au cours du dernier exercice, reflétant cette inflexibilité.

Vulnérabilité aux fluctuations des prix du carburant ayant un impact sur la rentabilité

Les coûts de carburant sont une composante importante des dépenses d'exploitation, constituant 40% du total des coûts opérationnels. En 2022, la livraison Cosco a connu un Augmentation de 40% dans les prix du carburant, ce qui a directement affecté les marges bénéficiaires. Le prix moyen du carburant du bunker a atteint approximativement 850 USD par tonne métrique. Une telle volatilité présente un risque pour la rentabilité, car l'entreprise peut avoir du mal à transférer les coûts aux clients dans un environnement d'expédition concurrentiel.

Cosco Shiping Specialized Carriers Co., Ltd. - Analyse SWOT: opportunités

La transition mondiale vers les énergies renouvelables entraîne une augmentation significative de la demande de services d'expédition spécialisés. Selon l'International Renewable Energy Agency (IRENA), la capacité mondiale des énergies renouvelables a atteint ** 3 064 GW ** en 2020, avec des attentes pour dépasser ** 5 500 GW ** d'ici 2025. Cette vague nécessite un support logistique dédié, le positionnement de la livraison COSCO spécialisée spécialisée. Transporteurs pour capitaliser sur le besoin croissant de solutions de transport spécialisées.

Les marchés émergents, en particulier en Asie et en Afrique, présentent des opportunités substantielles en raison de leurs besoins en expansion de développement des infrastructures. La Banque asiatique de développement (BAD) estime que le développement de l'Asie nécessitera au moins ** 1,7 billion de dollars ** par an jusqu'en 2030 pour répondre à ses besoins en infrastructure. Cette croissance se traduit par un marché florissant pour les compagnies de logistique et d'expédition, où la livraison COSCO peut considérablement étendre son empreinte.

Les progrès technologiques transforment l'industrie de la logistique, en particulier dans l'optimisation des opérations et la réduction des émissions. L'industrie du transport maritime devrait investir plus de 1,5 milliard de dollars ** dans Green Technologies d'ici 2025, selon les rapports de l'industrie. Cosco Shipping peut tirer parti de ces technologies pour améliorer l'efficacité opérationnelle et la durabilité, s'alignant sur les objectifs mondiaux de réduction des émissions.

Les partenariats stratégiques et les collaborations sur les marchés de niche offrent une autre avenue de croissance. Cosco Shipping a déjà lancé des partenariats dans le secteur éolien offshore et a obtenu des contrats pour des navires spécialisés. Par exemple, en 2021, COSCO Shipping a signé un accord pour fournir des services d'expédition pour les parcs éoliens offshore en Europe, reflétant un potentiel de marché estimé pour atteindre ** 109 milliards de dollars ** d'ici 2027 selon une étude de marché alliée. De telles collaborations améliorent non seulement les offres de services, mais augmentent également la part de marché dans les secteurs à forte demande.

Cosco Shiping Specialized Carriers Co., Ltd. - Analyse SWOT: menaces

Une concurrence intense des autres fournisseurs d'expédition spécialisés constitue une menace importante pour COSCO Shipping Specialized Carriers Co., Ltd. En 2022, le marché mondial spécialisé de l'expédition était évalué à approximativement 33 milliards de dollars et devrait grandir à un TCAC de 4.1% jusqu'en 2027. Les principaux concurrents incluent Maersk et Hapag-Lloyd, qui investissent en permanence dans leurs flottes pour améliorer les capacités de service et capturer la part de marché.

Les tensions géopolitiques ont également été un facteur affectant les routes commerciales mondiales et les voies d'expédition. Les retombées du conflit Russie-Ukraine ont perturbé les chaînes d'approvisionnement, avec un 30% La réduction du trafic d'expédition dans la mer Noire signalée au début de 2023. De plus, les tensions en mer de Chine méridionale ont entraîné une augmentation des coûts d'assurance pour les navires d'expédition, estimés à un 1 à 2 milliards de dollars par an pour l'industrie.

Les modifications réglementaires imposent des normes environnementales et de sécurité plus strictes qui pourraient entraîner une augmentation des coûts opérationnels pour la navigation COSCO. Les réglementations de l’Organisation maritime internationale (OMI) établies pour réduire les émissions de soufre sont entrées en vigueur en janvier 2020. Les coûts de conformité sont estimés à dépasser 4 milliards de dollars chaque année pour l'industrie du transport maritime mondial. En outre, les modifications nouvellement proposées ciblant les émissions de gaz à effet de serre pourraient nécessiter des investissements importants dans les mises à niveau de la flotte, ce qui peut atteindre 10 milliards de dollars Dans toute l'industrie d'ici 2030.

Les ralentissements économiques sont une menace constante, car ils peuvent avoir un impact significatif sur les volumes commerciaux mondiaux et la demande de services d'expédition. Selon l'Organisation mondiale du commerce (OMC), le volume mondial du commerce des marchandises devrait croître 1.7% en 2023, contre une estimation précédente 3.4%. En cas de récession, les volumes d'expédition pourraient diminuer de 7-10%, affectant gravement les sources de revenus de Cosco.

Ces facteurs de menace mettent collectivement les vulnérabilités COSCO Shiping Specialized Carriers Co., Ltd. Visages dans le paysage dynamique de l'expédition mondiale. Alors que l'entreprise relève de ces défis, sa capacité à s'adapter et à innover sera essentielle pour maintenir son avantage concurrentiel.

Comprendre les forces, les faiblesses, les opportunités et les menaces de Cosco Shiping Specialized Carriers Co., Ltd. offre des informations précieuses sur son positionnement stratégique au sein de l'industrie maritime, mettant en évidence non seulement les facteurs qui contribuent à son avantage concurrentiel mais aussi aux défis auxquels il est confronté dans Un paysage de marché en évolution rapide.

COSCO SHIPPING Specialized Carriers sits at the intersection of scale and technical edge-boasting the world's largest heavy-lift and pulp fleets, strong margins, and digital/renewables momentum-yet its success hinges on navigating cyclical project demand, hefty fleet renewal costs, fuel and emissions pressures, regional revenue concentration, and intensifying competition; read on to see how these strengths can be leveraged and which vulnerabilities could determine its next strategic moves.

COSCO SHIPPING Specialized Carriers Co.,Ltd. (600428.SS) - SWOT Analysis: Strengths

COSCO SHIPPING Specialized Carriers operates the world's largest multi-purpose and heavy-lift fleet with over 160 vessels totaling 5.5 million deadweight tons as of late 2025, delivering scale advantages across project logistics, charter pricing and route flexibility.

The company maintains a commanding 22% market share in the global semi-submersible transport sector, providing a significant competitive moat against smaller regional players and enabling pricing leverage for high-complexity cargoes.

Financial performance in 2025 demonstrates outperformance of the specialized segment: a gross margin of 18.5% for the first three quarters versus an industry average of 14%, and net profit of 2.1 billion RMB in the first nine months of 2025, representing a 15% year-on-year increase.

The company has established a dominant position in pulp transportation, operating the world's largest dedicated pulp fleet (55 vessels as of December 2025) and vertically integrated terminals handling over 15 million tons annually.

• Revenue contribution from pulp segment: 35% of total 2025 revenue.
• Long-term COA coverage: 70% of annual pulp capacity under contract.
• Record load factor in 2025: 96.4%.
• Empty backhaul rate: <12% (industry standard ~20%).

Advanced heavy-lift engineering and digitalization provide operational differentiation: 45 super-heavy lift projects (>10,000 tons each) completed in 2025 and proprietary 'heavy-lift digital twin' reducing planning time by 30% and lowering insurance premiums by 8%.

Financially, the company shows resilience and capacity for expansion: debt-to-asset ratio of 48.2% at end-2025, ROE of 12.4% in 2025, total assets of 32 billion RMB and cash reserves of 4.5 billion RMB, enabling self-funding of 60% of current newbuild program.

• Weighted average cost of capital (WACC): 4.1%.
• Dividend payout ratio: 35% (consistent over last three years).
• Ability to fund capex without excessive external borrowing due to parent group support.

Integration with China COSCO Shipping's global logistics network provides seamless end-to-end service: access to 500+ global offices, dedicated berths in 12 major ports, and a digital platform connected to 1,200 external vendors.

Key strategic strengths summarized in capabilities and outcomes:

• Scale and market share in semi-submersible and multi-purpose heavy-lift segments (160 vessels, 5.5 million DWT, 22% market share).
• High-margin specialized operations (18.5% gross margin vs. 14% industry average) and strong 2025 profitability (2.1 billion RMB net profit YTD).
• Leadership in pulp logistics with vertical integration (55 pulp vessels, 15 million tons terminal throughput, 96.4% load factor).
• Advanced technical edge (digital twin, young fleet age 8.5 years, R&D spend 2.8% of revenue) supporting renewables and super-heavy projects.
• Robust balance sheet and liquidity (48.2% debt-to-asset, 4.5 billion RMB cash), low WACC (4.1%) and consistent dividends (35% payout).
• Parent-group network integration enabling door-to-door services, reduced port times, expanded 3PL volumes and high client retention (88% top-100).

COSCO SHIPPING Specialized Carriers Co.,Ltd. (600428.SS) - SWOT Analysis: Weaknesses

High sensitivity to global industrial cycles has materially impacted revenue and utilization metrics. The company's heavy reliance on industrial project cargo exposes it to swings in global CAPEX: a 4% contraction in certain CAPEX-sensitive sectors during 2025 coincided with a 6% year‑on‑year drop in revenue from the mechanical and electrical equipment segment in Q2 2025 due to weakening industrial demand in Europe. Approximately 65% of total revenue is tied to cyclical industries (oil & gas, mining, infrastructure), producing pronounced earnings volatility. Daily charter rates for multi-purpose vessels have swung up to ±25% within single six‑month windows during periods of market stress. Fleet utilization for the multi-purpose segment fell by 5% in the 2025 winter season compared with the prior-year seasonal baseline.

Significant exposure to fuel price volatility raises margin risk. Fuel represented 28% of total operating expenses in 2025. Despite hedging roughly 40% of fuel requirements, a 15% mid‑2025 spike in VLSFO bunker prices compressed net profit margins by approximately 2.5 percentage points. Older tonnage (~15% of the fleet) consumes ~20% more fuel than newer eco‑design vessels, creating an intrinsic cost disadvantage. Contractual fuel surcharge mechanisms typically recover only 75-80% of actual bunker increases under competitive pricing pressures. As a result, operating cost per deadweight ton increased by 4.2% year‑on‑year in 2025.

Concentrated geographic revenue streams in Asia concentrate demand and regulatory risk. In 2025, 55% of total revenue originated from East Asia routes (notably China). Regional exposure translated into sensitivity to a 3% decline in Chinese manufacturing exports in early 2025. Attempts to diversify into Atlantic and trans‑Pacific volumes have progressed slowly: North American operations accounted for only 9% of revenue in 2025. New regional regulatory measures, including tightened emissions standards for Chinese coastal waters, produced incremental compliance costs of ~120 million RMB in 2025. This regional concentration heightens vulnerability to geopolitical frictions relative to more globally diversified peers.

High capital expenditure requirements to renew and decarbonize the fleet constrain financial flexibility. The company committed 6.5 billion RMB to newbuild CAPEX in 2025 to replace aging vessels and meet environmental standards, which drove a ~10% rise in annual depreciation & amortization expense. Extended newbuild lead times (≈36 months) due to global shipyard congestion delayed retirement of inefficient ships, sustaining higher fuel and operating costs. Financing these investments increased interest expenses by ~15% in 2025 despite a solid credit profile. Elevated ongoing CAPEX limits the company's ability to reallocate capital quickly to emergent market opportunities compared with asset‑light logistics competitors.

Complexity in managing a highly diversified specialized fleet increases operational cost and reduces flexibility. Operating eight distinct vessel types (asphalt tankers, car carriers, multi‑purpose heavy lift, Ro‑Ro, tankers for bitumen/asphalt, etc.) creates maintenance, crew and scheduling complexity. In 2025 maintenance costs per vessel for the diversified fleet were ~12% higher than comparable standardized container or bulk fleets. Enhanced crew training and retention efforts increased labor expenses by ~10% year‑on‑year. Limited interchangeability between vessel types prevents easy capacity redeployment-evidenced by a 7% decline in asphalt segment demand that could not be offset by reallocating asphalt ship capacity to other niches. The operational fragmentation contributed to an overhead‑to‑revenue ratio of 7.5%, above more specialized competitors.

• Short‑term earnings volatility driven by CAPEX and commodity cycles: earnings more sensitive to external capex swings than diversified logistics peers.
• Margin exposure via fuel cost: partial hedging leaves ~60% of fuel expenses unprotected.
• Concentration risk: >50% revenue tied to one region amplifies regulatory and trade policy impacts.
• Balance sheet strain from required fleet renewal: heavy CAPEX and higher financing costs reduce strategic flexibility.
• Operational inefficiency from fleet heterogeneity: higher maintenance, training and overhead costs relative to standardized operators.

COSCO SHIPPING Specialized Carriers Co.,Ltd. (600428.SS) - SWOT Analysis: Opportunities

Expansion in the global electric vehicle (EV) logistics market presents a material revenue and margin opportunity for COSCO SHIPPING Specialized Carriers. The company's Pure Car and Truck Carrier (PCTC) division recorded a 45% volume increase in 2025 driven by rising Chinese EV exports. COSCO has commissioned 12 new dual-fuel PCTCs with 7,500 CEU capacity each, with deliveries scheduled through 2026, positioning capacity additions of 90,000 CEU. China's EV exports are projected to grow 20% in 2026, and COSCO targets capturing 30% of outbound EV volume.

The company signed a five-year strategic capacity agreement in 2025 with three major Chinese EV manufacturers to provide dedicated shipping. The EV segment yields freight rates approximately 22% higher per unit than traditional ICE vehicles due to specialized handling and protective stowage requirements.

Growth in the offshore wind and renewable energy sector is driving demand for specialized heavy-lift and semi-submersible services. The global offshore wind market is expected to expand ~15% annually through 2030, creating a multi-year addressable market for turbine transport, foundations and installation cargoes. In 2025 COSCO secured contracts for three major wind farm projects in Southeast Asia and the North Sea worth an estimated RMB 850 million.

The company's 'Blue Whale' class semi-submersibles are optimized for next-generation 18MW turbines; this segment counts only four global competitors, enhancing pricing power. COSCO plans to convert two multi-purpose vessels into dedicated wind blade carriers by mid-2026. Revenue from renewables was 15% of total revenue in 2025 and is forecast to rise to 25% by 2028.

• Prioritize allocation of Blue Whale capacity to long-term wind farm contracts.
• Accelerate conversion timeline for blade carriers to capture 2026 surge.
• Target premium pricing for 18MW turbine logistics given limited competition.

Digitalization and smart shipping initiatives are expected to materially reduce costs and create high-margin service revenue. The 'Smart Specialized Carrier' platform implementation is forecast to yield a 5% annual operational cost reduction starting in 2026. In 2025 COSCO installed AI-driven route optimization across 80% of its fleet, delivering an observed 4% reduction in fuel consumption.

The late-2025 launch of a blockchain-based Electronic Bill of Lading (eB/L) system is projected to cut administrative processing times by 40%. Real-time cargo tracking and enhanced visibility are valued by 60% of high-value industrial clients, and the company expects these digital services to contribute an incremental RMB 200 million in high-margin service revenue by end-2026.

• Monetize real-time visibility through tiered service offerings.
• Integrate eB/L and route optimization to reduce DSO and transactional cost.
• Track and reinvest realized OPEX savings to accelerate fleet decarbonization.

Strategic development of the 'Polar Silk Road' offers significantly shorter transit times and cost advantages between Asia and Europe. Arctic routes can be up to 30% shorter in transit time versus traditional Suez/Canal pathways. In 2025 COSCO completed 12 polar transits (a 50% increase year-on-year) using ice-class specialized vessels; per voyage fuel savings are approximately 250 tons, reducing both costs and CO2 emissions.

The company is investing RMB 1.2 billion to build four new ice-class multi-purpose ships for delivery by late 2026. As Arctic ice thins, navigable windows are expected to extend to roughly 150 days per year by 2027, increasing route commercial viability and enabling higher utilization.

• Deploy new ice-class vessels to capture premium faster-transit customers.
• Develop integrated pricing that reflects fuel and time savings versus Suez routes.
• Coordinate with insurers and charters to mitigate Arctic operational risk.

Increasing demand for integrated end-to-end project logistics allows COSCO to expand beyond ocean transport into factory-to-foundation solutions. In 2025 the inland logistics and port handling division grew 18%, contributing RMB 450 million to EBIT. By providing integrated services, COSCO can capture an incremental 15-20% of total project logistics spend previously outsourced to freight forwarders.

The company plans three regional logistics hubs in Brazil, UAE and Germany by end-2026 to support cross-modal project execution. This strategy is expected to increase average contract value per customer by 12% over the next two fiscal years through bundled offerings and higher-value service lines.

• Accelerate hub development and integrate IT systems for cross-border visibility.
• Bundle ocean, inland, port handling and project installation into single-contract offerings.
• Measure KPIs: EBIT contribution, contract value uplift, and customer retention for integrated clients.

COSCO SHIPPING Specialized Carriers Co.,Ltd. (600428.SS) - SWOT Analysis: Threats

Intensifying competition from global heavy-lift peers has created significant downward pressure on freight rates and win-rates for COSCO SHIPPING Specialized Carriers. Competitors such as Zeaborn and BBC Chartering increased their fleet capacity by 10% in 2025, contributing to a spot-rate decline of 8% for 12,000-ton multi-purpose vessels in H2 2025. Aggressive pricing-discounts up to 15% to secure long-term 2026-2027 contracts-and entry of traditional container lines into project cargo (capturing ~5% of the 'small-parcel' specialized cargo segment) fragmented the addressable market, reducing the company's bid-to-win ratio for mid-sized projects from 45% to 38% in 2025.

The quantitative impact of competitive pressure on key commercial metrics in 2025 is summarized below:

Stringent environmental regulations and carbon pricing regimes are a material operational and capital threat. IMO CII ratings effective through 2025 placed approximately 20% of the company's older fleet in the 'D' or 'E' bands, creating near-term risk of operational restrictions. The company faces an estimated 1.5 billion RMB capex requirement to retrofit affected vessels with energy-saving devices by 2027. Expansion of the EU ETS to maritime transport added roughly 85 million RMB to operating costs in 2025. Regulatory non-compliance risks include fines and denial of access to selected high-value European ports from 2026 onwards. Projected regulatory-driven increases in vessel operating costs average ~6% p.a. over the next three years.

Key environmental/regulatory figures:

• Fleet share in CII D/E categories: 20%
• Estimated retrofit capex required by 2027: 1.5 billion RMB
• Incremental EU ETS cost (2025): 85 million RMB
• Projected annual increase in vessel OPEX due to regulations: ~6% p.a. (next 3 years)
• Potential port access restrictions effective from: 2026 (selected European ports)

Geopolitical tensions and rising trade protectionism are constraining core cargo flows and increasing voyage costs. New tariffs and provisional countervailing duties-such as the EU's measures of up to 38% on Chinese EVs announced in late 2024-slowed outbound shipment growth in 2025. Red Sea instability in 2025 forced rerouting of about 40% of Asia-Europe voyages around the Cape of Good Hope, raising voyage costs by ~15% and adding an average of 12 days to transit times, adversely affecting on-time delivery for project-critical cargoes. Trade restrictions on high-tech equipment exports to China reduced inbound heavy-lift volumes by an estimated 7% in 2025.

Quantified geopolitical/trade impacts for 2025:

Global economic slowdown and reduced infrastructure spending are weakening demand for large-scale project cargoes. Forecasts for 2026 project global GDP growth at 2.6%, typically correlated with fewer megaproject starts. In 2025, deferment of three major mining projects in Australia and South America cost an estimated 200 million RMB in potential revenue. Rising global interest rates increased financing costs for clients, contributing to a 10% reduction in new project inquiries in Q4 2025. Continued weakness in the Chinese real estate sector dampened domestic demand for specialized construction materials and equipment. If current trends persist, fleet utilization could fall below a critical breakeven utilization rate of 85% by mid-2026, threatening margin sustainability.

Economic and utilization indicators:

• Forecast global GDP growth (2026): 2.6%
• Deferred project revenue (2025): 200 million RMB
• Reduction in new project inquiries (Q4 2025): 10%
• Critical breakeven fleet utilization: 85% (risk of being breached by mid-2026)

Volatility in global currency exchange rates exposes COSCO SHIPPING Specialized Carriers to translation and hedging losses. The USD/RMB experienced ~5% variance during 2025. With ~70% of revenues denominated in USD and ~50% of costs in RMB, a stronger RMB materially erodes reported profits. Currency translation losses reduced net income by approximately 110 million RMB in H1 2025. Hedging costs rose by ~20% in 2025 due to elevated market volatility and widening interest-rate differentials, complicating budgeting and increasing non-operating volatility that can obscure operational performance.

Currency risk metrics: