Beibu Gulf Port: Investors inquire about performance and funding status, and the secretary provides a detailed response

Investor Question:

Hello, Secretary of the Board. I saw that everyone is discussing the company’s annual report on the stock forum, so I would like to ask:

① The net profit attributable to shareholders decreased by 14.85% year-on-year, but the net profit excluding non-recurring gains and losses increased. What are the main reasons for the fluctuations in non-recurring gains and losses, and how is the stability of profitability? ② The proportion of related-party transactions is relatively high. Sales account for nearly 20% of revenue, and purchases account for more than 15% of costs. What is the structure of the relevant transactions and the degree of business dependence? ③ The cash flow from financing activities changed from positive to negative, and no equity financing was carried out in this period. What are the arrangements for funding major projects going forward, and how will the debt structure change?

Please kindly explain. Thank you.

Secretary of the Board’s response (Beibu Gulf Port SZ000582):

Hello. ① The main reason for the fluctuation in the company’s non-recurring gains and losses is the changes in items such as gains from disposing of subsidiaries’ equity and government subsidy income during 2024, which are occasional and unpredictable. In 2025, the company’s net profit attributable to shareholders excluding non-recurring gains and losses is expected to increase by 6.02% year-on-year. The sources of profit are even more focused on the core business, the impact of non-recurring gains and losses is weakened, and overall profitability has strong stability. ② The company’s related-party transactions mainly include purchasing electricity from related parties, providing services to related parties and receiving services from related parties, leasing out or leasing in assets with related parties, and having related parties manage assets on its behalf, among other daily operating transactions. The transaction counterparties are the controlling shareholder Guangxi Beibu Gulf International Port Group Co., Ltd. and its subsidiaries, as well as the second-largest shareholder Shanghai China Shipping Terminal Development Co., Ltd. and its parties acting in concert. As a major public port investment and operation operator along the Guangxi coast, the company carries out normal business externally and does not have business dependence on any single related party, and its operations are independent. ③ Currently, the company’s own funds and the credit facilities that have not been used can basically ensure the near-term funding needs for major projects. Going forward, the company will coordinate financing plans in an overall manner based on the actual projects, the cost of funds, and the market environment, continuously optimize the debt structure, control repayment pressure, and keep overall liquidity risk under control. Thank you for your attention.

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