Singamas Container Holdings Limited (716) Earnings Call Transcript & Summary

Ladies and gentlemen, welcome to the online Annual General Meeting of the company. All the shareholders who attend this virtual meeting in person or by proxy or being corporations represented by a duly authorized representative can cast your vote and raise your question on the online meeting platform. If shareholders participating in this virtual meeting would like to vote, please click on the vote button at the top of the screen. To vote on resolution, please click on one of the relevant voting options for or against. To change your vote, please select click here to change your vote before the closure of the polling for the resolution. The final option you select before the closure of the polling for the resolution will be your final vote for the resolution. After the closure of the polling, you will no longer be allowed to change your vote. Votes cast through the online platform are irrevocable once the voting session at the meeting ends. The online platform permits a speed vote on the resolution. In other words, a shareholder casting his votes through the online platform does not have to vote all of his shares in the same way. [Operator Instructions] Shareholders attending the meeting online who experienced technical difficulties during the meeting should call the hotline of the Hong Kong share registrar of the company at (852)2862-8688. This virtual meeting will be chaired by Ms. Siu Wai Yee, Winnie, Chief Operating Officer of the company. I now invite Ms. Siu to proceed with this meeting.

Thank you, Rebecca. Good morning. Ladies and gentlemen, as the time scheduled for the Annual General Meeting has arrived, and we have the necessary quorum for the meeting, I now call the meeting to order and to proceed with the businesses to be transacted as specific in the notice of this meeting. You should have in your possession the company's annual report for the year ended 31st December year 2024 and a circular containing the Notice of Meeting dated 24 April year 2025. Unless there is a specific request from the shareholders, I shall take the notice of this meeting as set out on Pages 49 to 54 of the circular as written. Pursuant to the Rule 13.39 item 4 under the listing rule, except the procedural and administrative matters, any vote of shareholders at a general meeting must be taken by poll. Accordingly, all the resolutions to be voted at this meeting will be conducted by poll, except for the above-mentioned matters to be occurred. Computershare Hong Kong Investment Services Limited (sic) [ Computershare Hong Kong Investor Services Limited ], our share register has been appointed as the scrutineer for the poll at this meeting. To the best of directors' knowledge, no shareholder is required to abstain from voting on any of the resolutions to be passed at this meeting. The details of the resolutions to be passed at this meeting are set out in the circular and the Notice of Meeting. I now proceed the following resolutions in the order stated in the Notice of Meeting to be voted by poll. The first item is to receive and consider the audited financial statements of the company for the year ended 31st December year 2024, together with the directors and independent auditor's reports. The annual report and financial statements, including the independent auditor report have been delivered to you in accordance with the prescribed time. Unless there are any objections, I propose that we take the independent auditor's report as set out Pages 112 to 119 of the annual report as read. The second item is to declare a dividend of HKD 0.05 per ordinary share for the year ended 31st December 2024 as recommended by Board and be payable on 18th July year 2025 to the shareholders whose names appear on the register of members on 4th July year 2025. The third item is to reelect the retired directors. Resolution #3, Item A by Ms. Siu Wai Yee, Winnie, be reelected as Executive Director. Resolution #3, Item B, Ms. Chung Pui King, Rebecca, be reelected as Executive Director. Resolution #3, Item C, Mr. Lam Sze Ken, Kenneth, be reelected as Independent Non-Executive Director. The fourth item is to authorize the Board to fix the remuneration of directors. The fifth item is to reappoint Messrs, Deloitte Touche Tohmatsu as auditor to hold office until the conclusion of the next Annual General Meeting as a remuneration to be fixed by the Board. The sixth item is to grant the directors a general mandate to allot and issue shares and that to be passed as an ordinary resolution. The seventh item is to grant the directors a general mandate to repurchase company's shares and that to be passed as an ordinary resolution. The eighth item is subject to resolution #6 and 7 be passed, the aggregate amount of share repurchases shall be added to the aggregate amount of shares that may be allotted and that to be passed as an ordinary resolution. The ninth item is to amend the existing Articles of Association and to adopt the new Articles of Association and that to be passed as a special resolution. All proposed resolutions listed in the Notice of Meeting have been submitted. Thank you.

Before putting the resolution to the vote of the meeting by poll, shareholders can ask questions in Chinese or English by submitting the questions through the online platform. We will allow 3 minutes from now for shareholders to raise any questions. The meeting will resume after a few minutes. The 3-minute intermission starts now. [Break]

We received 3 questions from shareholders. Question one, can you please give an indication of how the business has performed year-to-date? Question two, to what extent has Trump's tariffs affected the business? And question three, and also the legislation with the U.S. taxing goods transport by Chinese ships or Chinese-owned ships into U.S. ports, may that also affect Chinese-manufactured containers? I now invite Ms. Siu to answer the questions.

First of all, thank you for the question. We are living in a world of a lot of uncertainty and things are very, very hard to predict this day. Because of that, 3 years ago, Singamas already have a new strategy, New Singamas. Under this strategy, we have done 2 things, 3 years ago. Number one, diversification. Nowadays, our business portfolio is much better than a few years ago, only rely on standard container manufacturing business. Number two, we are adopting a very prudent approach for our business plan. So under these 2 strategic initiatives we have in place 3 years ago, we are seeing a very good result. To answer question number one, because of that, our performance is far more stable than other sectors. And number two, about the Trump tariff, we see 2 things. Number one, there are a lot of uncertainty for the transpacific trade and U.S. market. And as a matter of fact, 2 months ago, cargo volume has come down. But all of sudden, there is an announcement of 90-day defer for the tariff execution. And everyone rushing all the goods for the whole year before the tariff will be finalized and executed. So we are seeing a very, very sharp increase of the demand, and we predict 2 months later, all the cargo to the United States most likely will be shifted. And unavoidably, cargo volume will come down, and that will eventually affect the container demand sentiment. The last question is regarding the USRT, about all the shipbuilder in China will be charged a port fee. We don't know what will be the impact yet. Number one, policy and what is in Trump's mind change daily. So all the shipping lines are trying to take different scenario to plan their business. But so far, we don't see any shipping line saying that they will not go to the U.S. market. So we are taking a very, very alert and monitoring approach to all these policy and changes in order to develop contingency and very agile business plan. Thank you.

Thank you, Winnie. Shareholders would like to follow up the questions can raise your questions through our IR office. We now proceed the voting session. We will allow 2 minutes from now for shareholders to cast your votes. Please vote on the online platform. If anyone did not know how to vote on the online platform, please call the hotline of the Hong Kong share registrar of the company at (852)2862-8688. The 2-minute intermission starts now. [Voting]

Ladies and gentlemen, I declare the process of voting end. As it takes time for the scrutineers to count the votes, the poll results would be published on the website of the stock exchange and the company. All the businesses of this Annual General Meeting have now been concluded. Thank you for your attendance at this meeting.