ThisreportispreparedinbothChineseandEnglish.TheChineseversionshallprevailincaseofanydiscrepancybetweentheChineseandEnglishtexts.
StockCode:600057StockAbbreviation:XiamenXiangyu
XiamenXiangyuCo.,Ltd.2024AnnualReport(Summary)
ToShareholdersIn2024,astheglobaleconomyandtradeorderunderwentacceleratedrestructuring,internationalindustrialcooperationandcompetitionenteredanewstage.Throughouttheyear,weremainedconfidentinourdevelopmentpath,seizedemergingopportunitiesamidchallenges,achievedsteadyprogressinourcoreoperations.Ourkeybusinessesnotonlyadvancedinscalebutalsoimprovedinquality,drivingtheCompany’soverallrecoveryandgrowthmomentum.Amidstmarketheadwinds,wepressedaheadwithgreaterresilienceandreinforcedourresolvetonavigatethrougheconomiccycles.First,wecontinuedtosolidifyourdevelopmentfoundation.Weadvancedbusinessmodelupgrades,strengthenedourriskmanagementframework,optimizedourcustomerportfolio,enhancedorganizationalcapabilities,andaccelerateddigitalandintelligenttransformation,allcontributingtoqualityandefficiencyenhancementsthatfuelourhigh-qualitydevelopment.Second,wemadesignificantstridesinourcompetitiveedge.Thesuccessfulcompletionofourrefinancingprojectsignificantlystrengthenedourcapitalstructureandopenednewchaptersinresourcesharing,technologicalcollaboration,andmarketexpansion.Third,weensuredcontinuitythroughsmoothmanagementteamtransition.Withseamlessmanagementsuccession,theXiangyuspirithasbeencarriedforward.Ourjourneyfromstrengthtoexcellencecontinueswithunwaveringmomentum.Lookingback,astheinternationaleconomicordercontinuedtoshift,China’seconomyhasshiftedfromrapidgrowthtohigh-qualitydevelopment.Inthisevolution,XiamenXiangyu’scorecompetitivenessstemsnotonlyfromasolidfoundationbutalsofromourresilienceandinnovation.Ourresilienceisreflectedinourabilitytomaintainstabledeliveryamidglobalsupplychainfluctuations.Wehavestrategicallypositionedourselvesacrosskeylogisticshubsbothathomeandabroad,integratingeachsegmentoftheindustrialchaintobuildaresilient,end-to-endsupplychainserviceplatform.Ourinnovationcomesfromforward-lookinginvestmentinthedigitalizationandgreeningofthesupplychainindustry.WeareacceleratingtheapplicationofadvancedtechnologiessuchasAIandblockchaininsupplychainscenarios,fosteringuniqueindustrialsynergy
advantagesinstrategicsectorslikenewenergyandadvancedmanufacturing,andcontinuouslyincreasingourtransformationtowardamoredigital,intelligent,andsustainablesupplychainecosystem.Lookingaheadto2025,astechnologicalrevolutions,industrialtransformations,andglobalpowerdynamicscontinuetointertwine,wewillmoveforwardwithgreaterforesightandresolve,continuetoweavearesilientandinterconnectedglobalsupplychainservicenetwork,intensifyoureffortsinresourceintegrationandstrategicchanneldeployment,whilefosteringaninnovation-drivenindustrialecosystem,agreenandsustainablebusinessmodel,andaresilientandhigh-performancesupplychainsystemthattogetherwillserveastheenginedrivingthefutureoftheindustry.Asthetideofprogresssurgesforward,wearepoisedtoembarkonanewjourneywithfullsails.Withthestrongsupportofourshareholdersandallsectorsofsociety,wewillstandunitedandmoveforwardtogether,maintaininganenterprisingspiritthatneverwavers,andabold,resolutedrivetoforgeahead.Stayingproactiveandcommitted,wewillsteadilyadvancetowardourvisionofbecomingaworld-classsupplychainserviceenterprise,strivingtocreategreatervalueforourcustomersandinvestorsalike.
XiamenXiangyuCo.,Ltd.
Chairman:JieWuApril22,2025
I.KeyAccountingDataandFinancialIndicators
Unit:RMBMillion
FY2024
| FY2024 | FY2023 | YoYChange(%) | FY2022 | |
| TotalAssets | 123,872.66 | 129,705.19 | -4.50 | 115,119.21 |
| EquityAttributabletotheShareholdersoftheListedCompany | 23,821.81 | 20,841.31 | 14.30 | 17,091.57 |
| OperatingRevenue | 366,670.61 | 459,035.45 | -20.12 | 538,148.06 |
| NetProfitAttributabletotheShareholdersoftheListedCompany | 1,418.82 | 1,573.94 | -9.86 | 2,636.90 |
| NetprofitsAttributabletotheShareholdersoftheListedCompanybeforeNonrecurringGainsandLosses | 406.50 | 507.30 | -19.87 | 2,655.99 |
| NetCashGeneratedfromOperatingActivities | 5,604.44 | 5,586.55 | 0.32 | 6,222.99 |
| WeightedAverageReturnonNetAssets(%) | 7.15 | 9.29 | Decreaseby2.14ppt | 18.06 |
| BasicEarningsPerShare(RMB/share) | 0.48 | 0.63 | -23.81 | 1.10 |
| DilutedEarningsPerShare(RMB/share) | 0.48 | 0.63 | -23.81 | 1.10 |
II.IndustryAnalysisDuringtheReportingPeriod
1.AnalysisoftheIndustry'sOperatingConditionsIn2024,China’seconomysustainedstableandprogressivegrowth,withhigh-qualitydevelopmentadvancingsteadilyandnewqualityproductiveforcesevolvingincrementally.However,confrontedwithacomplexandseverelandscapemarkedbymountingexternalheadwindsandinternalconstraints,China'sbulksupplychainenterprisescontinuedtograpplewithmultifacetedchallenges:first,year-on-yearprofitdeclinesamongindustrialenterprisesincreasingpressureonprofitmarginsacrosscertainindustrialchains,therebysqueezingprofitabilityforsupplychainserviceproviders;second,persistentsluggishnessindownstreammanufacturingdemand,coupledwithpricevolatilityandinventorybuildupindistributionchannels,furtherunderminedcommoditycirculationefficiency;third,
escalatingunilateralismandprotectionism,impedimentstomultilateraltradeframeworks,andproliferatingtariffbarriersjeopardizedthestabilityofglobalindustrialandsupplychains,disruptingthesmoothflowofinternationaleconomicactivity.Inresponsetomarketchanges,leadingbulksupplychainenterprisesleveragetheirserviceadvantagesandchannelcapabilities,focusingoncoreproductcategoriestofurtherincreasetheirmarketsharesinnichesegments.Theyoptimizecustomerandsupplierstructures,diversifyupstreamanddownstreamchannels,andmitigateoperationalrisks.Additionally,theyadjustproductportfoliostotapintostructuralopportunitieswithintheindustry,hedgingagainstcyclicalfluctuations.Seizingstrategicmomentum,theyexpandintokeymanufacturingsegmentsoftheindustrialchain,securingcriticalpositions.Furthermore,theyactivelydevelopinternationalclienteletoaccessincrementalmarketsandexploredigitalandintelligentapplicationscenariostoenhancesupplychainefficiency.Overthepastyear,whileprofitsofindustrialenterprisesremainedindecline,thepromptimplementationofacomprehensivepolicyportfoliohasfacilitatedasustainedrecoveryinindustrialperformance,withagradualreboundinthesupplychainsector'sprofitability.Althoughpersistentgeopoliticaltensionshaveheightenedvolatilityrisksininternationalmarkets,theyhavesimultaneouslyreinforcedChineseenterprises'determinationtoexpandglobally,indicatingcontinuedvastpotentialforinternationalsupplychaindevelopment.Concurrently,technologicalinnovationssuchasAIareprogressivelybeingintegratedintoindustrialandsupplychains,potentiallydrivingtransformativeupgradesinsupplychainefficiencyandoperationalparadigms.In2025,China'seconomicdevelopmentwillcontinuetofaceacomplexandchallengingexternalenvironment.However,thecountry'sfundamentaltrendoflong-termeconomicimprovementremainingunchanged.Asthegovernmentadoptsmoreproactiveandeffectivemacroeconomicpolicies,theprocurementdemandforbulkrawmaterialswillbestimulatedandcreditrisksamongcustomersaresettoease.Againstthisbackdrop,thebulksupplychainindustryisexpectedtowitnessmarginalimprovementsinbothdemandandprofitability,withleadingenterprisesdemonstratingenhancedoperationalresilience.
2.IndustryDevelopmentTrends
(1)IndustryRestructuringCreatesShareGainsandIntegrationOpportunitiesforLeadingCompaniesSurgingvolatilityinglobalcommodityprices,coupledwithcyclicalandstructuralheadwindsacrossselectindustries,hasheightenedoperationalpressureonbulkcommoditysupplychainplayers.Top-tiercompanies,relyingonstrengthsinresourceaccess,value-addedservices,andriskcontrol,areactivelyscalingtheirchannelnetworksandcapturinggreatermarketshare,showcasingstrongcounter-cyclicalexpansioncapacity.Onavolumebasis,theCR5
marketshare
ofChina’sbulkcommoditysupplychainindustryrosefrom4.81%in2021toanestimated5.26%
in2024,reflectingapronouncedleadereffectandrisingmarketconcentration.Meanwhile,acceleratingassetrestructuringacrosstheindustrialchainisunlockingnewopportunitiesforleadingplayerstomoveupstreamintomanufacturing,furtherextendingtheoperationalboundariesofthesupplychainsector.
Figure1：OperatingVolumeandMarketShare
ofCR5inChina’sBulkSupplyChain
Industry
| Figure1：OperatingVolumeandMarketShareofCR5inChina’sBulkSupplyChainIndustry | Figure2：theCompany’sOperatingVolumeandMarketShareinChina'sBulkSupplyChainIndustry |
1specificallyreferringtoWuchanZhongdaGroupCo.,Ltd.,XiamenC&DInc.,XiamenITGGroupCorp.,Ltd.,XiamenXiangyuCo.,Ltd.,ZheshangDevelopmentGroupCo.,Ltd..2theCR5marketshare=theCR5businessscale/thescaleofChina’sbulksupplychainmarketscale,wheretheCR5businessscalerepresentsthecombinedoperating(orsales)volumeofthesupplychainsegmentsoftheCR5companies,andthescaleofChina’sbulksupplychainmarketscaleisthesumofthedomesticproductionandimportvolumesofmajorbulkcommodities.
forCR5companiesthathavenotdisclosedfull-yearoperating/salesvolume,estimatesarebasedondoublingtheirhalf-yearvolumedata.
(2)CustomerDemandEvolutionDrivesDeeperIntegratedSupplyChain
ConvergenceAtacriticaljuncturewheremanufacturingenterprisesareexperiencingashiftingrowthpace,structuraloptimization,andtransformationofgrowthdrivers,theeraofhigh-qualitydevelopmenthasraisedthebarforsupplychainservices—manufacturingclientsnowdemandgreatercostefficiencyandoperationaleffectiveness.Leadingsupplychainplayersareevolvingtheirbusinessmodels,focusingonsupplybundling,processintegration,valuechainexpansion,andregionalcollaboration.Cross-categoryintegrationofupstreamanddownstreamchannels,alongwithlogisticscapabilities,hasbecomeacriticalcompetitivedifferentiator.Byleveragingthesynergybetweentradeandlogistics,top-tiersupplychaincompaniescanefficientlyallocateresourcesbyharnessingupstreamandmidstreamchannelcontrolandnetworkedlogisticsservices.Thisenablesseamlessflowofmulti-categoryproductacrosstheentiresupplychain,furtherdeepeningtheintegrated,full-industrial-chainoperatingmodelandenhancingserviceadvantages.
(3)GeopoliticalShiftsReshapeIndustrySecurityandGlobalLandscapeGeopoliticaltensionsareunderminingthesecurityofglobalindustrialandsupplychains,disruptinginternationaleconomicflowsandintensifyingtheimperativeforresilientcross-bordernetworks.Inresponse,ChineseenterprisesareacceleratingthebuildoutofresourcenetworksalongtheBeltandRoadcountries,andestablishingregionalsupplychainhubsthroughoverseasmanufacturingbases.Concurrently,geopoliticalconflictsareacceleratingtherestructuringoftheglobalenergylandscape,promptingChinatoexpeditethedevelopmentofamorerobustenergysecurityframework.Thesetrendsareexpectedtodrivesubstantialdemandforoverseassourcing,internationallogistics,cross-bordere-commerce,andadvisoryservices.Supplychainleaderswithfirst-moveradvantageindevelopingoverseassourcingandlogisticscorridors,buildinglocalizedteams,anddeliveringintegratedservicesarewellpositionedtomeetrisingoffshoresupplychaindemandfromChineseenterprisesandunlockincrementalgrowthacrossinternationalmarkets.
(4)TechBreakthroughsFuelDigitalSupplyChainsandValueChainExtensionAsmanufacturingenterprisesplaceincreasingdemandsonimprovingthequalityand
efficiencyofsupplychains,coupledwithoccasionalriskincidents,supplychainsecurityhasbeenelevatedtoastrategicpriority,acceleratingtheurgencyofdigitalandintelligenttransformationacrossthesector.Leadingplayersareactivelyadvancingpracticalapplicationsofdigitalintelligence.Havinginitiallyfocusedonbuildingfoundationalinfrastructure—suchasdigitizedlogisticsfacilities,securewarehousesystems,multimodaltransportintegration,andfreightresourceconsolidation—theyarenowpivotingtowardmoreadvanced,integratedsolutions,includingintelligentsupplychainfinance,digitalriskcontrolsystems,andsmartindustrialserviceplatforms.Cloudcomputing,bigdata,artificialintelligence,blockchainandothertechnologiesareboomingandgraduallypenetratingintothebulksupplychainserviceindustry.Theseadvancementswilleffectivelyimprovethesynergisticefficiencyofeachlinkinthebulksupplychain,enableplatform-basedsharingoflogistics,goods,information,andcapitalflows,anddrivetheoptimizationandupgradingoftheindustrialsupplychain.III.BusinessAnalysisDuringtheReportingPeriodTheCompanyspecializesinbulksupplychainservices,withmanufacturingenterprisesasitscorecustomers.Itprovidescomprehensivesupplychainsolutionscoveringtheprocurementofbulkrawandauxiliarymaterials,productdistribution,logisticsanddelivery,supplychainfinance,andinformationconsulting,etc.TheCompanyiscommittedtobecomingaworld-classsupplychainserviceprovider.
1.BusinessStructureIntermsofproductportfolio,basedoncustomerneedsanditsownbusinessphilosophy,theCompanyappliesthefollowingproductselectioncriteria:
①highliquidityandeasymonetization;②highstandardizationandeasystorage;③substantialdemandwithextendedindustrialchainsthatenableintegratedmulti-stageservices.TheCompanycurrentlyfocusesonbulkcommoditiesincludingmetallicminerals,agriculturalproducts,energyandchemicals,andnewenergymaterials,coveringsevencorecategories:ferrousmetals,aluminum,stainlesssteel,newenergy,coal,oil,andgrains.
Figure3:BreakdownofCombinedSpotandFuturesGrossProfitin2024Intermsofcustomerstructure,theratioofCompany’sservicevolumeformanufacturingclientsremainsstableatover60%in2024.Specifically,around80%ofservicesarewithinthenewenergysupplychain,over70%withintheferrousmetals,coalandaluminumsupplychains,andover60%withinthestainlesssteel,andover50%withinthegrainsupplychains.Intermsofregionallayout,theCompanyhasestablished10platformcompaniesacrossChina,expandingitsbusinesspresencetocover34provincial-leveladministrativeregions.Itscorebusinessareaisgraduallyextendingfromcoastalregionstoinlandareas,withafocusontappingthesupplychaindemandofmodernizedindustrialclustersincentralandwesternChina.Inrecentyears,theCompanyhasstrategicallypositioneditselfalongtheBeltandRoadCountries,activelyexpandingintointernationalmarkets.Ithasestablishedsubsidiariesorrepresentativeofficesin10countriesandregions,includingSingapore,theUnitedStates,Germany,SaudiArabia,NewZealand,Indonesia,Vietnam,andSouthAfrica.Itsbusinesspartnersnowspanmorethan110countries,withastrongfocusonconnectingwithpremiumprocurementanddistributionchannelsaboardandexploringtheoverseassupplychaindemandsoflargeChineseenterprises.
Figure4:Company’sGlobalBusinessFootprints
2.BusinessModelTheCompanyhasalwaysadheredtoacustomer-centricapproach,extendingupstreamtosecureresourcesanddownstreamtoexpandchannelsalongtheindustrychain.Itsserviceofferingshaveevolvedfromsingle-pointsolutionstoanintegrated“full-industrychainservicemodel”withXiangyucharacteristics,coveringrawmaterialprocurement,finishedproductdistribution,inventorymanagement,warehousingandlogistics,supplychainfinance.Afterachievingserviceadvantagesacrosstheentireindustrychain,theCompanyseizedtheopportunitytotapintovalue-addingmanufacturingsegments,forminganindustrialchainoperationmodelof“SupplyChainServices+ProductsManufacturing”,whichfurtherenhancedcomprehensiverevenueprofitabilityandbufferedcyclicalfluctuations.Intheeraofdigitalintelligence,theCompanyhasaccumulatedavastarrayofservicecasesandexperiencedatafromspecificbusinessscenarios,enablingittoswiftlyrespondtocustomerneedsandrecommendsuitableproductsandservices.Bytakingadvantagesofitsdistinctive“trade-logisticslinkage”,theCompanyintegratesregionalwarehousesandcross-regionallogistics,and,throughtheapplicationofbulkcommoditypricemanagementtools,providesvalue-addedservicestomanufacturingclientsanddelivercustomized
supplychainsolutions.
Figure5：Company'sOperatingModel
3.ProfitModelTheCompanyprioritizesserviceandscale-drivenprofitability,andissupplementedbypricedifferentialstogenerateprofits.ForadetailedbreakdownoftheCompany’sprofit,
pleaserefertothetablebelow.
Table1:ProfitStructureandDefinitions
TypesofProfit
| TypesofProfit | Interpretation | |
| ServiceProfits | Basedonitsplatformadvantagesandscaledoperations,theCompanyprovidescustomerscomprehensiveservicesacrosstheentireindustrychain.Theseofferingsencompassprocurementandsales,processing,logisticsanddistribution,supplychainfinance,andinformationconsulting,throughwhichtheCompanygeneratesservice-basedrevenue. | |
| TransactionProfits | Scale-basedProfitfromCargoConsolidation | Relyingonitslargebusinessscale,theCompanyachievescostadvantagesthroughcentralizedprocurementandspecializedoperations,reducingoperationalcostsacrossvarioussegmentsandgeneratingtradinggains. |
| ProfitsfromPriceDifferentials | Byutilizingitsexpertiseinprofessionalanalysis,theCompanyconductstradesbystudyingcommoditypricetrendsovertimeandregionalpricedifferencesacrossvariousareastogenerateprofitability. | |
4.StrategyOverviewTosupportitscorebulkcommoditysupplychainservices,theCompanyhaspioneeredanindustry-leading,network-basedlogisticssystemintegrating“Highway,Railway,Waterway,andWarehousing”toconnectbothdomesticandglobalmarkets.Capitalizingonindustrycycles,theCompanystrategicallytappedintomanufacturing,extendingitsservicescopeandexpandingitsoperationalboundaries.Today,theCompanyhasestablishedthreekeymanufacturingsegments—shipbuilding,mineralprocessing,andoilprocessing.Inaddition,theCompanyhasachieveddeepsynergywithitscontrollingshareholderinthemanufacturingsegmentsofthestainlesssteel,aluminum,andcornindustrychains,furtheramplifyingitssupplychainserviceadvantagesandunlockingadditionalgrowthpotential.Adheringtothestrategicvisionof"RootedinSupplyChains,ServingIndustryChains,andCreatingValueChains,"theCompanywillexpanditsglobalsupplychainnetworkbycontinuouslydeployingstrategicoverseaslogisticshubs;strengthenitscommercialinfluencebymakingminorityequityinvestmentsinupstreamminingrights,securingcriticalresourcesacrosscoreindustries;andintegratedownstreamchannelstounlockend-to-endcirculationandservicemarkets.
5.GlobalDevelopmentLandscapeAmidprofoundchangesintheglobaleconomiclandscape,theCompanyhadharnessedits
yearsofindustryexpertiseandchannelresourceadvantagestoestablishaglobaldevelopmentframeworkfeaturing“LedbySupplyChain,SupportedbyLogistics,andDrivenbyInvestment”.First,theCompanyisbuildingregionalindustrialecosystemswithglobalcompetitiveness.InSoutheastAsia,ithasdevelopedafull-industrychainmodelfeaturing“ResourceImportation,AdvancedProcessing,andGlobalDistribution”,supportedbyalocalizedlogisticsnetworkandextendingitsreachacrossASEANmarkets.InAfrica,theCompanyhasbuiltanintegratedmineralsupplychaintoensurethestabledeliveryofhigh-qualitybauxiteandtitaniumorefromWestAfrica.ItsbeneficiationplantinNigeriahasachievedaservicecoveragerateofover90%,complementedbytheinnovativeestablishmentofacentralizedprocurementlaboratory.IntheDemocraticRepublicoftheCongo(DRC),itscopperandcobaltservicessupportleadingnewenergyenterprises,enhancingbothresourceaccessandbrandinfluence.IntheAmericas,theCompanycontinuestodeepencooperationinmineral,agricultural,andenergytrade,improvingitsregionalindustrypresence.IntheMiddleEastandOceania,itcultivateshighvalue-addedproducttradetosupporttheglobalexpansionofChinesemanufacturing.Intraditionalresource-richcountrieslikeAustralia,ithasbuiltstableanddiversifiedsupplychannelstosafeguardnationalenergyresources.Second,theCompanyissystematicallyadvancingitsgloballogisticscapabilities.Ithasestablishedmajorinternationallogisticscorridors,includingChina-SoutheastAsia,China-Africa,andChina-Europe/CentralAsiarailwayexpress.IthasdevelopedandfullyoperatesmultiplepremiumroutesacrossEast,West,andSouthernAfrica,continuouslyenhancingitsmultimodaldomesticandinternationaltransportcapacity.Todate,theCompanyhasbuiltagloballogisticsservicenetwork,partneredwithover200high-qualityoverseassuppliers,andestablishedmorethan150overseaswarehousingnodes.Itoperatesself-managedwarehousesinkeyhubssuchasVietnam,theUnitedStates,andtheNetherlands.Tailoredlogisticsserviceshavebeendevelopedforthealuminumandnewenergyindustrychains,focusingonemergingmarketslikeSoutheastAsiaandAfrica,withintegratedcustomsclearance,warehousing,anddistributionservicestoprovidecomprehensivesupportfortheglobalexpansionofChinesemanufacturers.Third,theCompanypursuestargetedoverseasinvestmentwithaglobalperspective.Inthe
metallicmineralsegment,italignswithnationalresourcesecuritystrategiesbyinvestinginresource-richregionssuchasSouthernandWesternAfrica.Throughequityinvestmentsandlong-termagreementprocurement,ithasbuiltstableoverseassupplychannels,includingthejointventureshippingcompanyinGuineaandthejointventuremineralcompanyinZimbabwe.Inthenewenergysegment,alignedwiththe“dualcarbon”strategy,theCompanyhasenhanceditsindustriallayoutinSoutheastAsiaandEurope,expandedphotovoltaicre-exportbusiness,andpromotedtheinternationalizationofChinesetechnologiesandstandards.Intheautomotiveandagroforestrysegments,ithascultivateditspresenceinBeltandRoadmarketsandextendedthevaluechainthroughlocalizedoperationsintheMiddleEastandNewZealand.IV.AnalysisofCoreCompetitivenessDuringtheReportingPeriod
1.NetworkedLogisticsServiceCapabilityAsanational5A-levellogisticsenterprise,theCompanyhasdevelopedthreekeylogisticsoperatingentities(XiangyuSuperchain,XiangdaoLogistics,XiangyuAgriculturalProducts),andhasbuiltateamofspecialized,market-oriented,andinternationallyexperiencedlogisticsserviceprofessionals.Leveraginglong-termstrategicpartnershipswithkeylogisticsresourceoperatorssuchasCOSCOShipping,ChinaMerchantsGroup,andShandongPortGroup,theCompanyhastakentheleadintheestablishmentofnetworkedlogisticsservicesystemthatcenteredon“Highway,Railway,Waterway,andWarehousing”connectingbothdomesticandinternationalmarkets.Thissystemincludesarailwaytransportationnetworkthatconnectstheeastandwestregionsandlinksthenorthandsouthregions,anationwidehighwaytransportationnetwork,awaterwaynetworkbasedonmajordomesticportsandextendingtocountriesalongtheBeltandRoadRegions,andwarehouseclusterscoveringcoastalareasintheeastandbulkdistributionhubsinthecentralandwesternregions.Italsoconnectstointernationalmarketsthroughoceanshippingandcross-borderfreighttrains,enablingthedevelopmentofintegratedlogisticscorridorsandlocalizedlogisticsoperationsoverseas.TheCompanyfullytakesadvantageofmulti-modaltransportroutestoprovidecustomerswithhigh-quality,end-to-end,andcustomizedbulkcommoditylogisticssolutions.
Domestically,ithasdevelopedanumberofpremiumroutessuchas“Cross-provinceCirculationofAluminumProducts”,“North-to-SouthGrainTransportation”,“West-to-EastCoalTransportation”,and“North-to-SouthCoalTransportation”.Internationally,theCompanyhasestablishedinternationallogisticscorridorsincludingtheChina-EuropeandChina-CentralAsiarailwayexpress,aswellasinternationalroutessuchasChina-Indonesia,China-VietnamandChina-Thailand,China-Africa,andChina-Australia.ThenetworkedlogisticsservicesystemisnotonlyoneoftheCompany’scorecapabilitiesinservingmanufacturingcustomers,butalsoanimportantcornerstonefortheCompany’scargorightscontrolandbusinessdigitaltransformation.Duringthereportingperiod,theCompanywasrankedsecondamongtheTop50ChineseLogisticsEnterprisesof2024,rankedsecondamongtheTop100NationalGeneralWarehousingEnterprisesof2023,andrecognizedas“AdvancedUnitintheConstructionofChina’sDigitalWarehousingStandardSystem”for2023.Itwasalsoselectedas“2024FirstBatchofCFLPBenchmarkCasesforNationalLogisticsCostReduction”.
Table2:LogisticsResourcesandCapabilities
Category
| Category | ResourcesCapacity |
| Railway4 | TheCompanyoperates12railwaycargostations(10self-ownedand2managed),coveringmajorcommoditydistributionhubsinthecentralandwesternChina.Thesearesupportedby87dedicatedrailwaylines,approximately3.8millionsquaremetersofcontaineryardsandwarehouses,andover30,000self-ownedcontainers.Theannualtransportationcapacityexceeds57milliontons,rankingamongthetopintheindustry.TheCompanyhasalsodevelopedhigh-qualitytransportationroutesforcoalandaluminumproducts,suchas“Shandong/Henan-Xinjiang”and“Shaanxi-Yunnan/Guizhou/Sichuan”.Internationally,theCompanyhasdevelopedround-tripcirculationroutescenteredontheEurasiancontinent,withitspartnershipnetworkcoveringover80%ofChina-EuropeRailwayExpressplatformsnationwide.Ithasalsodeployedself-ownedcontainerstocontinuouslyenhancetheoperationalcapacityofChina-EuropeandChina-CentralAsiafreighttrains.Inaddition,theCompanyhastakenaforward-lookingapproachbylayingoutlogisticscorridorsacrosstheCaspianSea,aimingtobuildcomprehensiveinternationalmultimodaltransportcapabilities. |
| Highway | Ithasbuiltanetworkfreighttransportationplatformtofullyleveragethevalueofdigitalfreightservices,enhancevehicle-cargomatchingefficiency,enablereal-timetransportationtracking,andachieveend-to-endtransparentmanagementfromshipperstocarriers,therebyboostingqualityandefficiencyacrossthesupplychain.Duringthe |
includingYulinXiangdao,whichismanagedundertrustbytheCompany’ssubsidiaryXiangdaoLogistics.
Category
| Category | ResourcesCapacity |
| reportingperiod,theCompanyoperatedapproximately1,000self-ownedvehiclesandintegratedmorethan160,000third-partyvehicles,achievingatotalfreightvolumeofover23milliontons. | |
| Waterway | Domestically,theCompanyowns3multi-purposedomesticvesselsandintegratesover1,200socialvessels,forminga“self-owned+partnership”watertransportcapacityconfiguration.IthasformedstrategicpartnershipswithleadingportandshippingoperatorssuchasChinaMerchantsPortGroup,ShandongPortGroup,COSCOSHIPPINGPorts,andTianjinPortGroup.Duringthereportingperiod,theCompany’sdomesticcoastalandYangtzeRivertransportationvolumeexceeded25milliontons.Overseas,theCompanyowns2vesselsandcontinuestointegrateinternationalcollectionanddistributionshippingresources,buildingcapabilitiesininternationaldrybulkandcontainershippinglogistics.Duringthereportingperiod,theChina-Indonesialogisticscorridorcargovolumewasapproximately26milliontons,achievinga50%year-on-yearincrease;theChina-Africalogisticscorridorexceeded3milliontons,achievinga270%year-on-yearincrease;theChina-VietnamandChina-Thailandlogisticscorridorhandled36,000TEU,achievinga20%year-on-yearincrease;andtheChina-Australialogisticscorridortransportedover2milliontons,establishingstablerouteoperationcapabilities. |
| Warehousing | Domestically,theCompanyhasestablished5majorgrainprocurementplatformswithitsownandpartneredstoragecapacityofapproximately12milliontons,equippedwith20dedicatedrailwaylines.Itoperates69self-ownedandleasedwarehouses,coveringanareaofover1.6millionsquaremeters,andhas8stackingyardswithanareaofover500,000squaremeters.TheCompanyholds20approvedfuturesdeliverylicenses,withawarehousecapacityofabout1milliontons.Overseas,thecompanymaintainsaregularinventoryof50storagenodes,withforward-lookingstrategiclayoutsinmorethan150locations,coveringSoutheastAsia,Africa,CentralAsia,theMiddleEast,andEurope.Ithasalsolaunchedself-operatedoverseaswarehousebusinessesinkeylogisticshubssuchasVietnam,theUnitedStates,andtheNetherlands,establishingcomprehensivelogisticsservicecapabilitiesabroad. |
Figure6:Company'sNationwideandInternationalNetworkedLogisticsService
Ecosystem
2.DigitalizedSupplyChainServiceCapabilityTheCompanyfocusesonthreecoregoals:expandingincrementalmarkets,improvingserviceefficiency,andelevatingbusinessmodel.Leveragingvastbusinessdata,extensivecustomerresources,anddiverseapplicationscenarios,ithasbuiltanintelligentinformationtechnologysystem.Basedonitssmartlogisticssystem,theCompanycontinuestoenhanceitsdigitalservicecapabilitiesandhasdevelopedtheYuLianTongdigitalsupplychainserviceplatform,facilitatingefficientmatchingbetweencapitalprovidersandcustomerdemands.Duringthereportingperiod,theYuLianTongplatformreachedatotalcreditlineofRMB13.7billion,withannualcreditutilizationbycustomersamountingtoapproximatelyRMB3.6billion,representingayear-on-yeargrowthofover30%.
Figure7:YuLianTongDigitalSupplyChainServiceSystemFurthermore,theCompanyhasestablishedanintegratedsystemthatcoversmoduleslikefinancialcontrol,humanresourcesmanagement,customerrelations,riskmanagement,andequipment&assetmanagement,providingcomprehensivesupportforbusinessoperations.Throughenterprisemanagementanalysissystems,customeranalysis,andbigdataoperationsystems,theCompanysorts,extracts,andminesextensivebusinessdatatosupportbusinessdecision-making.Currently,theCompany'scoreinformationsystemisintegratedwiththeDeepSeekLargeLanguageModel,markingtheofficialbeginningofanewphaseintheintegrationof“AI+Industry”.Thisempowersthedevelopmentofnewproductiveforcesthroughartificialintelligence,injectingnewmomentumintotheCompany'sandtheindustry’shigh-qualitydevelopment.
3.SystematicRiskManagementCapabilityTheCompanyfirmlygraspsthefoundationsofriskcontrolbytargetingmanufacturingenterprisesasitscoreclientsandfocusingonhighlyliquid,easilyconvertible,standardized,andstorablebulkcommoditiesasitsmainproducts.Itadaptsthecompositionoftheseproductsdynamicallybasedonindustrycyclechangestostrengthenitsabilitytohedgeagainstcyclicality.TheCompanyhasalwaysmaintainedareverentattitudetowardsthemarket,prioritizingriskcontroloverprofitandscale.Ithascurrentlyestablishedthreelinesofdefenseforoperationalrisk(i.e.frontlinebusinessdepartments,headquartersriskcontroldepartments,andheadquartersauditdepartments).Itimplementsamulti-departmentaljoint,collective
preventionandcontrolmechanism,aroundtheestablishmentofpre-controlmanagementsystems,in-processmanagement,post-eventreview,andsystemoptimization.
4.GlobalChannelandResourceIntegrationCapabilityTheCompanyhascultivatedastrongcustomerbasecomprisingtop-tierenterprisesinindustriessuchasmetalminerals,agriculturalproducts,energyandchemicals,andnewenergy,establishingamatureandstableglobalbusinessnetwork.Throughclosecollaborationwithcustomersfromupstreamanddownstreamathomeandabroad,fundproviders,technologysupportproviders,andlogisticsserviceproviders,theCompanyintegratesabundantindustryresources,informationresources,logisticsresources,andfinancialresourcestoprovidecustomerswithintegratedsupplychainsolutions.Asaresult,theCompany'sresourceadvantagesareincreasinglystrengthened,itsbusinessmodelisbecomingmoremature,anditsupstreambargainingpower,downstreamdistributioncapabilities,andcomprehensivesupplychainservicecapabilitiesarecontinuouslyenhanced.
5.MultidimensionalIndustryResearchCapabilityTheCompanyhasestablishedathree-tierresearchframeworkconsistingofResearchInstituteattheGroupHeadquarters,IndustryResearchDepartmentoftheCorporationandResearchDepartmentswithinfront-lineoperatingentities.Itboastsateamofdedicatedresearcherswithaninternationalperspective,conductingresearchacrossmacroeconomic,industry,product,businessdevelopment,andriskmanagementdimensions.Thisenablescontinuousiterationofresearchmethodologiesacrossvariousindustrychains.TheCompanyhasalsobuiltcomprehensivesupplychaindatabasesencompassingoperations,finance,logistics,riskmanagement,andhumanresources,accumulatingvastamountsofdata.Meanwhile,itstrengthensthecollaborativesynergybetweenindustryresearchandfront-linebusinessandoperationsmanagement,empoweringtheCompany'sbusinessoperations,riskcontrol,andbusinessmodelupgrading,andcontributingtotheCompany'shigh-qualitydevelopment.
6.SpecializedSupplyChainServiceTeamTheCompanyplacesastrongemphasisontalentdevelopmentandteambuilding,
cultivatingamarket-driven,specialized,andglobally-orientedsupplychainserviceteamwhichcouldprovideprofessionalsupplychainsolutionstailoredtocustomerneeds.Meanwhile,theCompanyconsistentlyenhancesitsinternationalhumanresourcessystemthroughadualstrategyofexternalrecruitmentandinternaltraining,cultivatinganelitetalentpoolwithaninternationalperspectiveandserviceexpertise,withservicescoveringregionssuchasSoutheastAsia,Africa,Europe,andtheUnitedStates.Additionally,theCompany’steammanagementandperformanceevaluationmechanismsarehighlymarket-oriented,withcontinuousinnovationinincentiveprograms,effectivelymotivatingcoremanagementandfront-linebusinessteamstodemonstrateinitiative,proactivity,andcreativity.V.ManagementDiscussionandAnalysisofBusinessOperation
1.KeyOperatingResultsfor2024In2024,China’seconomydemonstratedoverallstabilitywithprogress,buttheadverseeffectsofexternalenvironmentalchangescontinuedtodeepen.Theprocurementdemandfromdownstreammanufacturingcustomersremainedweak,andcommoditypricesfacedpressure.Inresponsetomarketfluctuations,theCompanyhasremainedcommittedtoitsplatformization,globalization,anddigitalizationstrategies,takingitsadvantagesofresourceintegrationandtrade-logisticslinkage.TheCompanyhasalsodrawnvaluablelessonsfrompastexperiencestooptimizeandadjustitsorganizationalstructure,managementpractices,andoperationalstrategies.Theseeffortshavefurtherstrengthenedthefoundationforsustainabledevelopment,leadingtooverallbusinessstabilizationandimprovement.Duringthereportingperiod,theCompanyreportedrevenueofRMB
366.671billion,representingayear-on-yeardecreaseof20.12%;netprofitattributabletotheparentcompanyreportedRMB1.419billion,ayear-on-yeardecreaseof9.86%.Excludingtheimpactofcreditimpairmentlosses,thenetprofitattributabletotheparentcompanyincreasedbyover7%year-on-year,signalingtheinitialpositiveresultsofthemanagementoptimizationefforts.TheCompany’splatform-drivenmomentumhassteadilyadvanced.Duringthereportingperiod,thetotaloperatingvolumeremainedabove200milliontons,withaluminum,new
energymaterials,andMongoliancoalmaintainingleadingmarketshares;thetradingvolumesoflithiumandironoreincreasedbyover160%and20%year-on-year,respectively,furtherstrengtheningtheCompany’sindustrypositionandresourcenetworkadvantages;theagriculturalsupplychainsegmentreturnedtopositivegrossmarginsonspotandfuturesoperations;theshipbuildingsegmentsawrecordhighsinbothnewordervolumeandorderprofitability,contributingstableandsustainableprofitstotheCompany.Inaddition,theCompanyestablishedaSteelCenterbyintegratingitsferrousmetalssupplychain,coordinatinginternalandexternalresourcestobuildacomprehensiveoperationalmanagementsystem.ThroughdeeperintegrationacrossTrade-Logistics,Trade-Trade,andTrade-Manufacturingmodels,theCompanyisaddressingclients’diverseserviceneeds,improvingoperationalefficiency,andenhancingcustomerloyalty—exploringtheoptimalpathforspecializedandintensivedevelopment.TheCompanyhasachievedsignificantbreakthroughsininternationalexpansion,withitsglobalbusinessnowcoveringover110countries.Duringthereportingperiod,theCompanyrecordedatotalimport,exportandre-exportvolumeofapproximatelyUSD22.4billion,withimportandexportvolumetotaledapproximatelyUSD14.4billion.ThetotaltradevolumewithBRICScountries,BeltandRoadregions,andcountriesinSouthAmericaandAfricagrewbyover50%year-on-year,withexportsincreasingbyover60%.TheCompanycontinuedtostrengthenitsinternationallogisticschanneladvantages:TheChina-Indonesiacorridorrecordedayear-on-yearcargovolumeincreaseofover50%,maintainingaleadingmarketshare;theChina-VietnamandChina-Thailandcorridorachievedgrowthofover20%;andtheChina-Africacorridorssurgedby270%.Thespecializedlogisticsvolumeinthealuminumindustrychaingrewagainstthetrendbyover45%.Additionally,theCompanyenteredintoastrategicpartnershipwithaleadingbauxitemineinWestAfricatoestablishajointventureshippingcompany.Thiscollaborationwillleveragethepartner'scargovolumetobuildownedcapacityfortheWestAfrica-Chinaroute,enhancingtheCompany’saluminumsupplychainlayout.Furthermore,inearly2025,theCompanyestablishedasubsidiaryinSouthAfrica,acceleratingbusinessexpansioninAfricathroughtheintegrationoflogisticsandtrade.Duetothesynergybetweentradeandlogistics,theCompany’saluminumandnewenergysupplychainshavetakentheleadin
settingapracticalbenchmarkforinternationalfull-industrychainservices,pavingthewayforscalingupitsglobalintegratedsupplychainservicecapabilitieswithprovenmodelsandexperiences.TheCompany’sdigitalizationandintelligence-drivencapabilitieshavebecomeincreasinglyprominent.TheYuLianTongplatformhasfurtherexpandeditsproductmatrixandspecializedscenarios.Leveragingtransactiondataaccumulatedfromyearsofsupplychainservices,theplatformhasintroducedthenewYuShuRongsub-product,effectivelyenhancingdownstreamcustomers’accesstobankingfinanceandimprovingefficiency,whichboostsincreasingcustomerloyaltyinturn.TheZhiYunnetworkfreightplatformcollaboratedwiththemerchandiseoperationandlogisticsteamstojointlydeveloplargeindustrialclients,unlockingthevalueofdigitalfreight,deeplyintegratingcapacityresources,andempoweringbusinessoperations.Additionally,theLiangLianTongplatformhasintroducednewproductssuchasMaiLiangBaoandAnXinCun,whichimprovebankingfinancingefficiencyforcustomersinplanting,procurement,andstorage,whileutilizingderivativetoolstohelpcustomersmanagepricingrisks.Aftertwoyearsofexplorationandadjustments,theCompanyhasfurtheremphasized"Product&ResearchFirst"instrategicapproach,"LogisticsFirst"forinternationalexpansion,and"RiskControlFirst"inbusinessmanagement.Thebusinessmodel,centeredonservingmanufacturingclients,hasdemonstratedstrongself-repaircapabilitiesanddevelopmentresilience.In2024,theCompany’sbusinessfundamentalscontinuedtostabilizeandimprove.Itswiftlyrespondedtoandmitigatedtherisksfromakeycustomerincidentinthesecondhalfoftheyear,quicklysummarizinglessonslearnedandstrengtheningtheriskcontrolsystem.Thisincluded:(1)steadilyadvancingtheconstructionofdigitalandintelligentriskcontrol,(2)revisingandimprovingtheindustryresearchandriskalertsystem,and(3)graduallyphasingoutinefficientandhigh-riskbusinesses.Duringthereportingperiod,theCompanyoptimizedandimproveditscustomerstructureandbusinesscomposition,increasedtheproportionofservicerevenue,andenhanceditsabilitytoachievewin-wincooperationwithupstreamanddownstreampartnersbyusingderivativetools.Asaresult,theCompany’sbusinessstabilityandgrowthresiliencehavebeenfurtherstrengthened.
Withthegovernmentrollingoutproactivepoliciestoboostdomesticdemand,stabilizeexpectations,andstimulatevitality,theeconomyispoisedforasustainedrecovery.TheCompanyisconfidentinitsabilitytoovercomedevelopmentbottlenecksandstrengthenthefoundationforsustainablegrowth,despiteindustrycyclicalfluctuations.Takingthepreparationandimplementationofitsnextfive-yearstrategicplanasanopportunity,theCompanyaimstoreturntothepathofhigh-qualitydevelopment.
2.KeyBusinessDatafor2024
(1)BulkCommodityTradingTheCompanyleveragesbulkcommoditiesasitscorebusiness,enteringintocomprehensiveagreementswithclientstoofferintegratedsupplychainservicesencompassingprocurement,distribution,logistics,supplychainfinance,informationconsulting,andprocessing.Therevenueandprofitabilityfromthissegmentarereflectedintheresultsofcorecommoditytrading,asoutlinedbelow:
Unit:billion,RMB
Category
| Category | OperatingVolume | OperatingRevenue | CombinedFuturesandSpotGrossProfit | CombinedFuturesandSpotGrossProfitMargin | ||||
| Volume(mnmetrictons) | YOY | Amount | YOY | Amount | YOY | Value | YOY | |
| CommodityTrading | 224.48 | -0.30% | 345.3 | -21.39% | 6.318 | 2.85% | 1.83% | Increaseby0.43ppt |
| Amongthese:MetallicMineral | 139.84 | 6.53% | 214.9 | -20.84% | 4.538 | -12.34% | 2.11% | Increaseby0.20ppt |
| AgriculturalProducts | 13.90 | -31.71% | 40.2 | -33.73% | 0.382 | Turnedprofitable | 0.95% | Turnedprofitable |
| EnergyandChemical | 70.20 | -4.05% | 80.1 | -7.78% | 0.839 | -20.07% | 1.05% | Decreaseby0.16ppt |
| NewEnergy | 0.54 | 47.03% | 9.3 | -51.92% | 0.499 | 45.85% | 5.39% | Increaseby3.62ppt |
Note:TheCompanyprovidesintegratedsupplychainservicesandengagesinspottradingtosupportitsoperations.Itutilizesfuturesinstrumentstohedgeagainstpricevolatilityinthecommoditymarkets,resultinginchangesinfairvalueandgainsorlossesfromthedisposalofsuchinstruments.Thecombinedgrossprofitandgrossprofitmarginofthefuturesandspottradingarecalculatedafteraccountingforthehedginggainsorlosses.Inthemetallicmineralsupplychain,theCompanymaintaineditscompetitiveadvantageinMongoliancoalimportsandexpandeditspresenceinbauxiteandferrochromeresources
acrossAfricaandSoutheastAsia,aswellasinsteelmarketsintheMiddleEast,Africa,andSouthAmerica,withferrochromeimportsvolumeincreasedbyover30%year-on-year,whilesteelexportssurgedbymorethan150%.Grossprofitmarginofthealuminumsupplychain(spotandfuturescombined)rosesignificantlyby1.12percentagepointsyear-on-year.However,duetosubdueddemandanddecliningpricesintheferrousandstainlesssteelindustrialchains,bothrevenueandgrossprofitdeclinedyear-on-year.Intheagriculturalsupplychain,theCompanystrengthenedflowmanagementandinventoryrotation,expandedservice-orientedandimportbusinesses,enrichedtheLiangLianTongproductsystem,andenhancedassetturnoverefficiencyandwarehouseutilization.Againstthebackdropofcontinuedpricedeclineinbulkgraincommodities,thesegmentsuccessfullyturnedprofitableatthegrossmarginsonspotandfuturesoperationslevelandmaintainedasteadyupwardtrendinbusinessperformance.Intheenergyandchemicalsupplychain,theCompanyincreasedtheproportionofdirectcoalmineprocurement,explorednewcrudeoilsupplychannels,andachievedsteadygrowthinoverseasbusinessvolumealongtheoilindustrychain.Nevertheless,duetoweakerdemandandfallingpricecentersinthesteamcoalandoilsegments,bothrevenueandgrossprofitdecreasedyear-on-year.Inthenewenergysupplychain,theCompanystrengthenedupstreamaccesstocriticallithiumresourcesbothdomesticallyandinternationally,deepenedcollaborationwithleadinglithiumsaltprocessorsmidstream,andacquirednewterminalclientsathomeandabroaddownstream.Asaresult,bothbusinessvolumeandprofitabilityachievedsignificantyear-on-yeargrowth.However,overallrevenuedeclinedduetothedropincommodityprices.
(2)BulkCommodityLogisticsWhilemeetingtheinternallogisticsneedsofitssupplychainoperations,theCompanyhasalsoleverageditsinternalbusinessfoundationtodevelopmarket-orientedlogisticsservicecapabilities,whichinturnfeedbackintoandempoweritssupplychainoperation,creatingamutuallyreinforcingcyclebetweencommodityoperationsandlogisticsservices.In
parallel,theCompanyisbuildingdualcapabilities:theabilitytoprovideintegratedindustriallogisticssolutionsacrossthevaluechain,andtheexecutionexpertisetodeploythesesolutionsoperationally.Thisapproachhasacceleratedtheformationofalogisticssysteminwhichindustrialresourcesandlogisticsservicesdriveandenhanceoneanother.TheoperatingresultsoftheCompany’smarket-orientedlogisticsservicesareaccountedforseparately,asoutlinedbelow:
Unit:million,RMB
Category
| Category | OperatingRevenue | GrossProfit | GrossProfitMargin | |||
| Amount | YOY | Amount | YOY | Value | YOY | |
| CommodityLogistics | 9,422 | 32.99% | 837 | 19.03% | 8.88% | Decreaseby1.04ppt |
| Amongthese:IntegratedLogistics | 6,171 | 11.38% | 661 | 20.11% | 10.71% | Increaseby0.78ppt |
| RailwayLogistics | 2,845 | 126.90% | 132 | 158.45% | 4.64% | Increaseby0.57ppt |
| AgriculturalProductLogistics | 249 | -14.14% | 32 | -68.70% | 12.82% | Decreaseby22.34ppt |
| AluminumIndustryLogistics | 157 | Notapplicable | 12 | Notapplicable | 7.95% | Notapplicable |
Note:Railwaylogistics,agriculturallogistics,andaluminumindustrylogisticsreferrespectivelytothemarket-orientedlogisticsservicesprovidedbytheCompany’ssubsidiariesXiangdaoLogistics,XiangyuAgriculturalProducts,andXiangyuAluminumUnion.Integratedlogisticsreferstothemarket-orientedlogisticsservicesofferedbyXiangyuSuperchainandotherlogisticssubsidiaries.Specifically,agriculturallogisticsmainlycoversservicesrelatedtonationalandprovincialgrainreserves,whilealuminumindustrylogisticsandintegratedlogisticsprimarilyincludeinternationalshippingroutes,cross-borderrailfreightservices,inlandwaterwaytransport,highwaytransportation,andwarehousingservicesbothdomesticallyandoverseas.
IntegratedLogistics:TheCompanydeepenedpartnershipswithindustrialclientsandexpandeditswarehousingnetwork.Itnewlyobtainedthreefuturesdeliveryqualifications,establishingadeliverywarehousesystemcovering15typesofcommoditiesacrossitsfourmajorbusinesssegments.Meanwhile,theCompanydrovesignificantgrowthinbothdomesticnorth-southlogisticscorridorsandinternationalroutestoSoutheastAsiaandAfrica.ItalsoconsolidateditsmarketshareadvantageontheChina-IndonesiarouteanddevelopedpremiumservicesforAsia-Europerailwayexpress,resultinginyear-on-yeargrowthinbothrevenueandgrossprofit.RailwayLogistics:TheCompanystrengtheneditspresenceinthecoalandaluminumindustrialchains,achievingasubstantialincreaseinXinjiangCoalOutbound
Transportation.Italsoitexpandedrail-to-portbauxitelogistics,aswellaslogisticsservicesforlithiumore,lithiumcarbonate,andothernewenergyindustrymaterials,acceleratingthedeploymentofhigh-quality,capital-lighthubsandimprovingturnoverefficiencyofself-ownedcontainers,whichdroveyear-on-yeargrowthinbothrevenueandgrossprofit.AgriculturalLogistics:Duetoreducedvolumesfromnationalreserve,fallingcornprices,invertedpricedifferentialsbetweennorthernandsouthernregions,andcautiousdownstreamprocurement,andcargovolumesdecreased,leadingtoyear-on-yeardeclinesinbothrevenueandgrossprofit.However,bycapitalizingonreservereplenishmentopportunitiesinFujianandGuangdongprovincesandcentrallyadministeredwarehouses,theCompanyexpandedthird-partystoragevolumesandsuccessfullylaunchedtheinnovative“CunLiangBao+AnXinCun”productsystem.Asaresult,combinedvolumesacrossfourkeycategories—provincialreserves,temporaryreserves,third-partyreserves,andCunLiangBao—achieveda37%year-on-yearincrease.AluminumLogistics:InSeptember2023,theCompanyestablishedXiangyuAluminumUnion,aspecializedsubsidiarydedicatedtoaluminumlogistics.Leveragingitsexistinglogisticsinfrastructureandcustomerbase,andunderpinnedbyacomprehensivedomesticmulti-modalnetwork(Highway,Railway,Waterway,andWarehousing),theCompanyfocusedonbuildinganend-to-endinternationallogisticscorridorfromoverseasminestodomesticdistributionhubs,acceleratingthedevelopmentofspecializedlogisticscapabilitiesforthealuminumsupplychain.Duringthereportingperiod,itprioritizedservingmajoraluminumproducersanddevelopedpremiumlogisticsroutesbothathomeandabroad,reachingaservicevolumeof3.38milliontons.
(3)Production&ManufacturingAfterestablishingaserviceadvantagethroughouttheindustrychain,theCompanystrategicallyventuredintothevalue-addedproductionandmanufacturingsector.Thismoveresultedinthedevelopmentofanintegratedindustrialchainoperatingmodelthatcombinessupplychainserviceswithproductionandmanufacturing,theobjectiveistoenhanceoverallprofitabilityandmitigatetheimpactofcyclicalfluctuationsintheindustry.Theoperatingresultsinthemanufacturingsegmentforthisperiodareasfollows:
Unit:billion,RMB
Category
| Category | OperatingRevenue | GrossProfit | GrossProfitMargin | |||
| Amount | YOY | Amount | YOY | Value | YOY | |
| Production&Manufacturing | 11.1 | 2.54% | 1.292 | -1.86% | 11.60% | Decreaseby0.52ppt |
| Amongthese:Shipbuilding | 5.9 | 24.76% | 1.072 | 0.27% | 18.13% | Decreaseby4.43ppt |
Note:
a.Themanufacturingsegmentincludesshipbuilding,beneficiationandoilprocessing.ThebusinessentityofshipbuildingsectoristheCompany'ssubsidiary,NantongXiangyuShipbuilding&OffshoreEngineering.Duringthereportingperiod,theCompanyincreaseditsownershipstakeinXiangyuMarineEquipmentfrom36%to51%.b.Intheshipbuildingsegment,exchangeratefluctuationsoftheU.S.dollarledtoadeclineinreportedgrossprofitmargin.However,byusingfinancialinstrumentstohedgeagainstforeignexchangerisks,theCompanyachievedayear-on-yearincreaseinactualhedgedgrossprofitmargin.Intheshipbuildingsegment,theCompanyseizedmarketopportunitiesandpersistentlyprioritizesbrandleadership.Boththenumberofdeliveredshipsandneworders,alongwiththeordermargin,reachednewhighs.TheUltramaxseriesbulkcarriershadthelargestordervolumeglobally,whiletheordervolumeforchemicaltankersunder10,000tonsrankedfirstworldwide.Bytheendofthereportingperiod,theorderbooktotaled89ships,withordersscheduledfordeliveryuntil2029.Atthesametime,theshipbuildingsegmentpromotedleanproductionandtechnologicalupgrades,reducingproductioncostsandshorteningconstructioncycles,resultinginanoverallincreaseinproductioncapacitybymorethan25%.InAugust2024,theCompanyacquiredthecoreassetsofJiangsuHongqiangMarineHeavyIndustryCo.,Ltd.throughjudicialauction,withproductionexpectedtoresumebymid-2025.Uponresumptionofproduction,itisexpectedtofurtherenhancetheoverallcapacityoftheshipbuildingsegmentby40-50%.
3.Trade-LogisticsLinkage:ExploringaPracticalBenchmarkforInternationalFull-IndustryChainServicesAgainstthebackdropofglobalsupplychainrestructuring,theCompanyhasbeenactivelyexploringdifferentiateddevelopmentpathsininternationalmarketsforyears.Itstrategicallytargetsindustrieswithcomplexsupplychainstructuresandhighdemandforsupplychainservices,focusingonproductcategoriescharacterizedbysupply-demandmismatches,geographicallydispersedproductionchains,andhighlogisticscostratios.By
cultivatingresource-richregionswithunderdevelopedinfrastructurethroughits“LogisticsFirst”overseasexpansionstrategy,theCompanyhasbuiltafirst-moveradvantagetocapturestructuralopportunitiesarisingfromtheregionalizationofglobalsupplychains.AlthoughAfricaholdsabundantmineralreserves,itslogisticsinfrastructureremainsrelativelyunderdeveloped,withcertaintypesofmineralresourcesdispersedacrossdifferentregions.TheCompanyhastargetedAfricaasastrategicbeachheadmarket,establishingalocalsubsidiarytoprovideintegratedlogisticssolutionsanddevelopindustrializedinternationalroutes,withinitialbreakthroughsachievedinthealuminumandnewenergysupplychains.
(1)GlobalIntegratedAluminumSupplyChainServicesChina'sbauxitesupplyhasmaintainedanimportdependencyrateexceeding60%overthepastthreeyears.WhileAfricaholdsnearly25%oftheglobalreserves,theregionhaslongexperiencedlowdevelopmentratesandinadequatelogisticsinfrastructure—creatingstrongdemandforinternationallogisticsservicesandofferingsubstantialmarketpotential.In2022,theCompanyestablishedaninternationalaluminumsupplychainteamandhassincedevelopedacomprehensiveglobalservicesystemacrosstheentirevaluechainbystrategicallydeployingkeylogisticsnodesandindustrialresources.Upstream,itbuiltGuinea-centricbauxiteimportchannelsbyleveragingtrade-logisticsintegration;midstream,itenteredindustrialoperationsthroughdeepcooperationwithitsparentcompany'selectrolyticaluminumplants;downstream,itofferedintegratedexportserviceswhilebuildingarecycledaluminumcircularsystemtoextendfull-chaincirculationcapabilities.TheCompanyhasgraduallyconstructedthreecorecompetitivemoats:upstreamresourceintegration,trade-logisticssynergy,andfull-chainindustrialoperation.In2024,thebauxitetradingvolumeexceeded10milliontons,includingover7.4milliontonsimportedfromAfrica,andaluminatradingvolumereachednearly7milliontons,securingatop-threemarketpositioninChina.
Figure8:Company’sGlobalIntegratedIndustryChainServiceModelfor
AluminumSupplyChainAttheendof2024,theCompany’scontrollingshareholderobtainedmanagementrightsoverthecorealuminumassetsacquiredthroughbankruptcyreorganizationandestablishedXiangyuAluminumasanewoperatingentity.XiangyuAluminumhasanannualproductioncapacityof750,000tonsofelectrolyticaluminum,1milliontonsofaluminumextrusion,and1.8milliontonsofaluminumrolling,andhasalsomadeforward-lookinginvestmentsinaluminumfineprocessing.DependingonbusinesssynergywithXiangyuAluminum,theCompanyissettobuildacompetitiveindustrychainmodelintegrating“Manufacturing+SupplyChainServices”,furtherstrengtheningthestabilityofupstreamanddownstreamchannelsandenhancingitsmarketpresence.
(2)GlobalIntegratedNewEnergySupplyChainServicesBenefitingfromtherapiddevelopmentofthenewenergyindustrychain,China'slithiumoreimportshaveachievedacompoundannualgrowthrate(CAGR)ofapproximately25%overthepastfiveyears,reflectingstrongmarketdemand.Ontheinternationalfront,althoughAfricaholdsabundantreservesofnewenergymineralssuchaslithium,cobalt,
andcopper,theseresourcesaregeographicallydispersed,developmentremainsinearlystages,andlogisticsinfrastructureisrelativelyunderdeveloped—creatingsignificantmarketpotentialandopportunitiesforsupplychainandlogisticsintegration.Since2018,theCompanyhasstrategicallypositionedinnewenergysupplychains.Ithasestablishedapresenceacrossthreemajorsegments—lithiumbatteries,photovoltaics,andenergystorage—whileconcentratingoncorecommoditiessuchaslithium,cobalt,nickel,siliconwafers,batterycells,modules,andenergystoragesystems.Byintegratingthefullindustrychain—fromrawmaterialminesandupstreamsmelterstomidstreamprocessorsanddownstreamend-users,theCompanyhasestablishedbothdomesticandinternationalprocurementandsaleschannelsacrosstheentireindustrychain,providingend-to-endlogisticssolutions.Ithasbuiltanintegratedinternationalsupplychainservicecapability.Currently,theCompanyhassuccessfullyestablishedcomprehensivepartnershipswithkeyplayersacrossmajorlithiumproductionregions,includingsaltlakesandminesinAfrica,Australia,andJiangxi,China,aswellaswithbatteryrecyclingcompaniesandleadingglobalanddomesticmanufacturersofbatteriesandcathodematerials.TheCompanyranksamongthetopfiveinChinaforlithiumcarbonatetradingvolume.In2024,thegrossprofitfromspotandfuturesoperationsinthenewenergysupplychaingrewbyover45%year-on-year,withtradingvolumesoflithiumoreandlithiumcarbonateincreasingbymorethan160%and400%,respectively.
Figure9:TheCompany’sGlobalIntegratedNewEnergySupplyChainServiceModel
Figure10:GlobalFootprintoftheCompany'sIntegratedNewEnergySupplyChain
Services
Buildingonitsstrongpresenceinthelithiumbattery,photovoltaic,andenergystoragesectors,theCompanyenteredthecleanenergysectorin2024tocapitalizeonthegrowingmarketopportunitiesdrivenbythegreenenergytransition.Byintegratingitsnewenergysupplychaincapabilitieswithitsestablishedcustomerbaseinvariousindustries,theCompanyhaspartneredwithcentralpowergenerationgroupsandlocalenergycorporationstoadvancethedevelopmentofWind-Solar-StoragePowerPlantprojects,offeringcomprehensivelow-carbonenergysolutionsforfactories.
4.KeyBusinessPlansfor2025In2025,whileChina’seconomicdevelopmentcontinuestofaceacomplexandchallengingexternalenvironment,thenation’slong-termupwardtrajectoryoftheeconomywillremainunchanged.Asthegovernmentadoptsmoreproactiveandeffectivemacroeconomicpolicies,China’seconomicwillforgeaheadsteadilythroughthewaves.TheCompanywillfullyleveragethelessonslearnedfromthepasttwoyears,comprehensivelyrefineitsbusinessstrategies,riskmanagement,andorganizationalstructuretoaccelerateitsrecoveryfromthecurrentperformancedownturn.Meanwhile,theCompanywilltakethepreparationofitsnextfive-yearstrategicdevelopmentplanasapivotalopportunitytothoroughlyreviewpastmanagementshortcomings,deeplyanalyzethephase-specificcharacteristicsofthenewera,adapttoeconomicdevelopmenttrends,clarifyitsstrategicpositioningandcorecompetitivestrengthsinindustrychainoperations,intensifytransformationefforts,anddriveinnovation,ultimatelyshapinganewblueprintforsustainabledevelopment.FacedwiththesignificantmarketshiftcausedbytherecentU.S.impositionof“reciprocaltariffs”,theCompanypromptlydevelopedaresponseplan.AlthoughtheCompany’sbusinessexposuretotheU.S.isrelativelylowanditscurrentoperationshavenotbeenseverelyimpacted,wewillcontinuetoexplorediversifiedmarketsandglobalresourcechannelstomitigatetheoperationalrisksbroughtbyinternationaltradefrictions.In2025,followingthecompletionoftheprice-lockedprivateplacementrefinancing,theCompanywillactivelypromotestrategiccollaborationwithtwopowerfulstrategicinvestors,ChinaMerchantsGroupandShandongPort,andfocusonthefollowingkeyareas:
Platformization:Buildingonourindustry-leading,network-basedmultimodallogisticssystem—whichconnectsdomesticandinternationalmarketsviahighway,railway,waterway,andwarehousing—wewillenhanceourspecializedoperationalcapabilitiesacrosscoreindustrialchains.Wewillalsodeepensynergieswiththecontrollingshareholder’smanufacturingsegments,includingaluminum,stainlesssteel,andcornprocessing.Specifically,effortswillfocusonstrengtheningtheCompany’send-to-endinternationalsupplychainservicecapabilitiesinaluminumandnewenergysectors,managingagriculturalinventoryexposure,scalingupservice-orientedoperations,leveragingtheoperationalefficiencyoftheSteelCenterplatform,andactivelyseizingopportunitiesfromtheglobalenergytransition,exploringemergingareassuchascarbontrading.InternationalExpansion:WewillacceleratetheconstructionofChina-Africainternationallogisticschannelsandestablishamulti-modal,comprehensivelogisticsnetworkwithXiangyucharacteristics,integratinglogisticsandtradeoperationstodriveglobalexpansion.Relyingonitsoverseasplatformcompanies,wewillsolidifyourcompetitivepresenceinSoutheastAsia,Africa,andSouthAmerica.Byadoptingacapital-lightexpansionmodelthatexchangesequityforcommercialrights,wewillexpediteaccesstomineralandprimaryprocessedresourcesinAfricaandSoutheastAsia.Digitalization:WewillpromotebroaderapplicationoftheYuLianTongdigitalsupplychainserviceplatformandtheZhiYunnetworkfreightplatform,alongwithagriculturalindustrial-levelinternetplatformsandsmartlogisticssystemsthatprovidemoretailoredandcomprehensiveservicesolutionsbasedoncustomerneeds.Wewillalsoenhancetheintelligentdigitaloperationandmanagementsystem,andexplorethedeepintegrationofAI-poweredsolutionswithsupplychainoperations.OrganizationalOptimizationandCapabilityEnhancement:WewillfurtheradvancetheintegrationofourbusinesssegmentstakingtheSteelCenterasabenchmark.Wewilloptimizetheallocationofresourcessuchascapitalandhumantalent,improvethealignmentbetweencapitalutilizationandoperatingefficiency,andguideproductportfoliooptimization.Wewillalsostrengthencapabilitiesinindustryresearch,riskmanagement,andtheintegrationofderivativesintosupplychainservices.Additionally,wewillimprove
theperformanceevaluationandincentivemechanisms,launchinganewroundofequityincentiveplanstostimulateteaminitiativeandinnovation.Manufacturing:Intheshipbuildingsegment,wewillseizethecyclicalupturnintheshipbuildingmarket,focusingonboth“capacityexpansionandenhancement”and“producttransformationandrenewal”;accuratelycaptureordersinalignmentwithmedium-andlong-termmarkettrends,whileenrichingtheshiptypesbasedonindustrydemand.Inthebeneficiationsegment,wewillfocusondevelopinghigh-qualityoverseasminesandexploringdeeperengagementwithkeyclients;bystrengtheningcollaborationwithsteelmillsacrossalldimensionsanddeliveringcustomizedproducts,weaimtoenhancecustomerstickiness.Intheoilprocessingsegment,wewillcontinuetopursuepartnershipswithpremiumcrushingplantsandacceleratetheintegrationofcrushingcapacitylayout,drivingtheexpansionofthesoybeansupplychainbusiness.VI.DiscussionandAnalysisontheCompany’sFutureDevelopment
1.IndustryLandscapeandTrendsInDecember2024,theCentralEconomicWorkConferenceconductedathoroughanalysisofthecurrenteconomiclandscape,affirmingthatChina’seconomylong-termpositivetrajectoryremainsunchanged.Duringthe2025“TwoSessions”inMarch,theGovernmentWorkReporthighlightedChina’sdistinctiveinstitutionaladvantages,includingitssupersizeddomesticmarketetc.Italsomadeclearthatmoreproactiveandeffectivemacroeconomicpolicieswillbeimplementedtoexpanddomesticdemandandpromotesustainedeconomicrecoveryandgrowth.Despiteoperatinginacomplexandvolatileexternalenvironmentthathasimpactedbusinessperformance,thebulkcommoditysupplychainindustryfacesbothchallengesandopportunities.Inthecontextofstructuralchangesacrosstheindustrialchain,increasingmarketconcentrationiscreatingnewbusinessprospects.Leadingbulksupplychaincompanies,throughglobalnetworkexpansionandfull-chainresourceintegration,arepoisedtoseizestrategicadvantages,acceleratethegrowthofbothdomesticandinternationalmarketshare,andexpeditetherestructuringoftheindustrylandscape.Foradetailedanalysisofindustryoperationsanddevelopmenttrends,pleasereferto
“IndustryAnalysisDuringtheReportingPeriod”.
2.DevelopmentStrategyoftheCompanyTheCompanyadherestothebusinessphilosophyof“RootedintheSupplyChain,ServingtheIndustrialChain,CreatingtheValueChain”,focusingoncoreindustrialchainsandkeycustomers.Itcontinuestostrengthenitsintegratedsupplychainservicecapabilities,anddeepenservicevalue.Byhelpingrealeconomyenterprisesreducecostsandimproveefficiency,ultimatelyfosteringmutualgrowthwithupstreamanddownstreampartners.UnderitsSixthFive-YearStrategicPlan,theCompanyadopts“Platformization,Globalization,andDigitalization”asitsstrategicdirection,focusingonenhancingcapabilitiesinprocurementandsalesservices,logisticsservices,andinformationservices,andonunleashingplatformpotentialwhilestimulatingteamvitality.TheCompanypursuesscalablegrowthandconsistentqualityimprovementsthroughexpandingproductcategories,developingregionalmarkets,andprovidingvalue-addedservices,advancingsteadilytowarditsvisionofbecominga“world-classsupplychainserviceprovider”.Theyear2025marksboththeconclusionoftheSixthFive-YearPlanandthelaunchoftheSeventh.Leveragingthepreparationofitsnextfive-yearstrategicdevelopmentplanasapivotalopportunity,theCompanywillconductanin-depthanalysisofthephase-specificcharacteristicsinthenewera,adapttomacroeconomictrends,clarifyitsstrategicpositioningandcorecompetitivenessinsupplychainoperations,andintensifyeffortsintransformationandinnovation,mappingoutanewblueprintforsustainabledevelopment.
3.BusinessPlanoftheCompanyFordetails,pleasereferto“4.KeyBusinessPlansfor2025”in“ManagementDiscussionandAnalysisofBusinessOperation”.
4.PotentialRisks
(1)MacroeconomicUncertaintyandCommodityPriceVolatilityTheworldisundergoingacceleratedchangesunseeninacentury,withanincreasinglycomplexandchallengingexternalenvironment.Risingunilateralismandprotectionism,setbacksinmultilateraltradesystems,growingtariffbarriers,combinedwithongoing
geopoliticaltensions—posemultipleriskstoglobalindustrialandsupplychains.Theinternationalcommoditymarketisexperiencingsignificantpricevolatility.AstheCompany'sindustryiscloselytiedtomacroeconomicconditionsbothathomeandabroad,fluctuationsinthemacroeconomymayhaveacertainimpactontheCompany’soperatingperformance.ResponseStrategies:TheCompanyactivelymonitorsmacroeconomicdevelopmentsandindustrytrends,maintainscomprehensiveoversightofmarketrisksassociatedwithkeycommodities,andstrengthensitsanalysisofpricemovements.Byutilizingtoolssuchasspot-futuresintegrationandhedgingstrategies,theCompanyisenhancingitsabilitytoproactivelymanagepricerisks.
(2)OperationalManagementRisksWhilethelong-termpositivetrajectoryofChina’seconomyremainsunchanged,thefoundationofcurrentrecoveryisnotyetsolid.Weakdemandalongwithoperationaldifficultiesfacedbycertainenterprises,posesignificantchallengesacrosstheindustrialvaluechain.Consequently,theCompanyfacesoperationalrisksincustomercreditmanagement,businessmodels,pricefluctuations,andcargorightscontrol.ResponseStrategies:TheCompanywillenhanceitsintelligentanddigitalizedoperationalmanagementsystemandfurtherstrengthentheseparationof“threerights”—namely,therightstobusinessoperations,financialmanagement,andlogisticsandcargomanagement.Amulti-prongedapproachwillbeadoptedtomanageriskseffectively,including:increasingtheproportionofmanufacturingclientswhilereducingcustomerconcentration(fromacustomerperspective);optimizingtheproductmix(fromacommodityperspective);upgradingbusinessmodels(fromamodelperspective);andenhancingtheriskmanagementframework(fromacontrolperspective).Inaddition,toaddresscustomercreditrisks,theCompanywillcontinuetorefineitsriskcontrolmeasures,enhancepre-transactionoversight,establishrobustmonitoringmechanismsforkeycustomers,strictlymanagehigh-risktransactions,andimproveoveralloperationalqualitytosafeguardtheinterestsofboththeCompanyandourshareholders.
(3)InternationalExpandingRisks
GlobalizationisoneoftheCompany’scorestrategicpriorities,withbusinesspartnersspanningover110countriesandregions.However,significantdifferencesinpolitical,economic,social,andreligiousenvironmentsacrossregions,alongwithescalatingtradefrictionsbetweencertaincountries,mayadverselyimpacttheCompany’sglobalexpansionefforts.ResponseStrategies:TheCompanywillcontinuetocloselymonitorchangesinhostcountrypolicies,regulations,andinternationalmarketdynamics,timelyimplementingearlywarningandpreventivemeasurestomitigaterisks.Wewillalsocloselyobserveexchangeratetrendsandreinforceexchangerateriskmanagementthroughderivativeinstruments.Inparallel,wewillstrengthencooperationwithcentrally-administeredstate-ownedenterprisesandleadingcorporationswithextensiveoverseasexperience,leveragingtheirplatformstofacilitateinternationaloperationsandmitigateassociatedrisks.