E-COMMODITIES (01733) announced that the group expects its revenue for the fiscal year ending December 31, 2025, to decrease compared to the full year of 2024, reaching between approximately HKD 24.5 billion and HKD 26 billion. The group also forecasts that its profit attributable to equity shareholders for the same period will decline to a range of HKD 3.10 billion to HKD 3.30 billion. While this represents a decrease from the full-year 2024 results, the second half of 2025 is expected to show a stable increase compared to the first half. The performance change is primarily attributed to significant volatility in the coking coal market throughout the year, a substantial downward shift in the price center, and a restructuring of profits within the industrial chain. This has led to pressure on both sides for intermediate trade and logistics segments, resulting in decreased revenue and gross profit. Key operational environmental factors are analyzed as follows:

Supply Chain Trade Segment: In 2025, the global economy faced pressure, while geopolitical tensions and trade friction intensified, leading to significant adjustments in the steel and coking coal industries. Domestically, the steel market exhibited a pattern of strong supply and weak demand, with both crude steel production and consumption declining. Demand structure is gradually shifting from construction to manufacturing. Although steel exports achieved volume growth, the average export price decreased, characterized by "volume increase and price decrease." Regarding coking coal imports, after three consecutive years of growth in domestic import volume, 2025 saw a year-on-year decrease of approximately 3%. Influenced by price disparities between domestic and international markets, seaborne coking coal imports, excluding those from Mongolia, fell by about 10% year-on-year. The overall coking coal market experienced sharp price fluctuations, following a pattern of initial decline, followed by an increase, and then a subsequent drop, with the price center shifting significantly downward. The average price for premium coking coal throughout 2025 was $183 per ton, down approximately 27% compared to the same period last year. The main futures contract for premium coking coal saw a maximum decline of about 39%, hitting a new low since 2017. These substantial price fluctuations highlight market uncertainty. Downstream steel mills have dominated pricing power, leading to narrowed profits for upstream players. The trade segment is squeezed from both upstream and downstream, resulting in thin profit margins. Downstream customers maintain low inventories and prioritize fast turnover, showing limited purchasing enthusiasm. This increases operational risks and pressure for the trade segment, demanding higher requirements for corporate risk control, operations, and fund security. In 2025, facing a challenging market environment, the group proactively adopted a cautious procurement strategy, implemented strict risk controls, closely followed market changes, and optimized sales selections. However, impacted by unit prices and trade volume, the segment's revenue decreased by approximately 38% year-on-year. Nevertheless, the group directly addressed market price volatility with a dual-drive strategy, actively optimized its product mix, strengthened research and development in coal blending technology, enhanced its capability to provide high-quality furnace coal services, and built differentiated advantages. It coordinated efforts in domestic and international markets, steadily expanding its overseas footprint. Simultaneously, it placed greater emphasis on strengthening risk management, flexibly utilizing futures tools to hedge against price fluctuations, helping partners precisely match spot and futures positions and avoid operational risks.

Supply Chain Integrated Services Segment: In 2025, the competitive landscape at the China-Mongolia ports underwent profound changes. With the continuous improvement in customs clearance capacity at the Ganqimaodu Port and the ongoing enhancement of infrastructure at ports like Ceke and Mandula, overall industry transport capacity supply increased significantly. Market competition intensified, leading to a decline in service fees across various cross-border transportation segments, putting pressure on the group's revenue and profitability. Concurrently, weaker coal market prices in 2025, with the average annual price for Mongolian #5 raw coal at the Ganqimaodu Port being CNY 909 per ton (down approximately 29% year-on-year), affected customer purchasing willingness and freight demand, subsequently impacting related service charge levels. The average short-haul freight rate at Ganqimaodu Port in 2025 was CNY 67 per ton, down about 26% year-on-year. However, against the backdrop of overall industry profit contraction and intensified competition, the company's business volume remained relatively stable. This fully demonstrates the anti-cyclical capability and operational resilience of the integrated, closed-loop supply chain service model built over many years. Revenue for this segment decreased by approximately 14% compared to the previous year, primarily due to declining market prices. Looking ahead, the company will continue to explore ways to better adapt to the new competitive landscape at the ports. Accordingly, the company may consider adopting a strategy of "optimizing layout and multi-point support," which could include seeking to consolidate its base at Ganqimaodu Port while maintaining existing service advantages; evaluating opportunities to increase its presence at ports like Ceke and Mandula to create incremental support; and exploring the establishment of a balanced cross-border supply chain system to reduce reliance on any single port and enhance overall risk resistance and long-term profit stability.