Sinotrans (598) H1 2026 earnings summary

Executive summary

• Revenue for 1H2026 was RMB 46.452 billion, down 8.06% year-over-year, mainly due to strategic withdrawal from certain cross-border e-commerce and platform businesses, while net profit attributable to shareholders was RMB 1.73 billion, down 11.4% year-over-year.

• Net profit net of non-recurring items was RMB 1.64 billion, up 17.33% year-over-year, driven by deepened engagement with key industry customers, cost control, and profit growth in major segments.

• Achieved steady growth in principal business, with further improvement in cash dividend payout ratio and enhanced operational capabilities through strategic marketing and digital transformation.

• Overseas business delivered solid achievements, with notable revenue and profit growth.

• Cash flow from operating activities was a net outflow of RMB 858 million, compared to an inflow of RMB 168 million in 1H2025, mainly due to increased advanced freight payments amid surging sea freight rates.

Financial highlights

• Revenue reached RMB 46.452 billion for 1H2026, down 8.06% year-over-year.

• Net profit attributable to shareholders was RMB 1.73 billion, down 11.4% year-over-year; net profit net of non-recurring items was RMB 1.64 billion, up 17.33% year-over-year.

• ROE stood at 17.33%, up 0.44pp year-over-year; weighted average ROE was 4.12% (down 0.72pp YoY); ROE net of non-recurring items was 3.92% (up 0.44pp YoY).

• Gross profit margin improved by 0.9pp year-over-year to 8.1%.

• Interim dividend of RMB 0.14 per share, total payout RMB 1.00 billion, with a payout ratio of 58.2%.

Outlook and guidance

• Plans to expand markets, drive revenue growth from major industry clients, and roll out CRM system, with a focus on product innovation, digital transformation, and cost reduction through centralized procurement.

• Strengthening overseas operations in Southeast Asia, Europe, and cross-border corridors, and emphasizing AI applications, green logistics, and risk control in finance, compliance, and safety.