Sinotrans' Chairman Zhang Yi has stated that the company's overseas operations will focus on achieving tangible results in expanding its existing market share while making steady and cautious progress in exploring new growth areas. On August 26, the company released its first-half 2026 financial results, reporting revenue of RMB 46.452 billion, a year-on-year decrease of 8.06%, with net profit attributable to shareholders of listed company reaching RMB 1.725 billion, down 11.40% from the previous year.

The company attributed the revenue decline to its strategic optimization of business layout, which included the proactive exit from certain cross-border e-commerce logistics and logistics e-commerce platform operations to facilitate the positive return of resources.

Looking at the agency and related business segment specifically, Sinotrans generated external turnover of RMB 29.937 billion in the first half of 2026, a modest increase of 1.04% year-on-year, while segment profit rose 18.04% to RMB 1.434 billion.

A breakdown of the five major sub-segments within this business reveals a mixed performance. The ocean freight forwarding business recorded revenue of RMB 21.804 billion, up 3.34%, with segment profit of RMB 562 million, representing a 10.15% increase, as cargo volume reached 8.201 million TEUs, growing 3.65%. The air freight forwarding arm saw revenue decline 5.49% to RMB 3.759 billion, yet segment profit surged 87.81% to RMB 87 million, with cargo volume of 397,000 tonnes, down 3.41%. The railway forwarding segment was a standout performer, with revenue climbing 9.76% to RMB 4.738 billion and segment profit skyrocketing 574.27% to RMB 143 million, as cargo volume jumped 94.86% to 417,000 TEUs. The ship agency business generated revenue of RMB 873 million, up 2.11%, with segment profit of RMB 328 million, a 16.16% increase, handling 41,248 vessel calls, up 13.54%. Meanwhile, warehouse and yard services revenue grew 1.60% to RMB 1.967 billion, but segment profit fell 18.00% to RMB 167 million, with cargo throughput of 12.664 million tonnes, down 0.96%.

Sinotrans attributed the overall performance of its agency and related business to rising ocean and air freight rates during the period, which helped cushion the impact of geopolitical conflicts on the market. The company noted that its self-operated block trains outperformed the broader market, significantly enhancing operational efficiency and driving modest revenue growth in the segment. Through initiatives such as strengthening internal coordination, developing corridor products, and implementing centralized booking and procurement, the company was able to further expand its profit margins.

During the reporting period, Sinotrans actively built a competitive product portfolio. In terms of corridor products, the water transport offerings "Greater Bay Area River-Sea Express" and "Southeast Asia Express" achieved breakthroughs in business volume, as did the full-chain air freight products for China-Europe and China-US routes. The "Silk Road Express" achieved weekly regular operations, with 125 trains dispatched cumulatively. The "Bay Area Cross-Border Green Transport" product has operated over 14,000 vehicle trips, while the "Guangdong-Shanghai Green Transport" service, launched in April, has accumulated 2,912 vehicle trips.

At the interim results briefing held on August 26, Zhang Yi, who serves as Party Secretary and Chairman of Sinotrans, along with Gao Xiang, Director, General Manager, and Chief Digital Officer, fielded questions from investors. When asked about the company's strategic approach to overseas mergers and acquisitions amid the complex international macroeconomic environment, Zhang Yi provided his latest perspective. He outlined that Sinotrans' future overseas operations will aim to achieve effective results in expanding existing business and make steady progress in exploring new opportunities. The company will continue to strengthen its cross-border road transport business in the Indo-China Peninsula and advance the construction of the Malaysia Logistics Center project. Leveraging its European air freight route resources, Sinotrans will improve its overseas hub collection and distribution network, focusing on strategic customer needs to enhance local delivery capabilities. For the China-Europe and China-Central Asia corridors, the company will deepen strategic cooperation with block train resource providers to improve end-to-end operations and local service capabilities. Additionally, Sinotrans will strengthen business synergies and plan the development of cross-border intermodal corridors in the Middle East and Africa.

Gao Xiang addressed investor questions regarding whether the "freight rate dividend" from geopolitical conflicts in the first half of the year had impacted Sinotrans' ocean freight forwarding business and whether such benefits were sustainable. He explained that Sinotrans' ocean freight forwarding operations do not employ a model of pre-locking space and rates, meaning freight rate fluctuations have limited impact on segment profits. The segment's profit is primarily correlated with container volume and the service scope provided to clients. In recent years, Sinotrans has consistently increased the proportion of multi-link services within its ocean freight forwarding business, achieving notable results. In the short term, per-container profits may experience some volatility due to intensifying market competition and upstream cost pressures being passed down to logistics companies. However, over the long term, Sinotrans will strive to improve per-container profitability in ocean freight forwarding by extending its service chain and continuing to streamline inefficient business operations.

Looking ahead to the second half of the year, Sinotrans stated it will adhere to its transformation strategy centered on "demand aggregation, capacity procurement, capability enhancement, and product development." The company plans to focus on seven key areas: expanding markets, building products, optimizing resources, reducing costs, expanding overseas presence, strengthening technology, and tightening risk control. These efforts are aimed at consolidating its foundation and driving reform to achieve a strong start to the "15th Five-Year Plan" period. According to the 2026 Global Ocean Freight Forwarders Top 50 ranking published by Transport Topics, Sinotrans once again claimed the top position with a cargo volume of 4.925 million TEUs.