On August 8, 2023, CULines conducted our mid-year business review meeting to assess and analyze our performance for the first half of 2023 and make strategic plans for the future. The conference was attended by Mr. Raymond Chen (Chairman of CULines), Mr. Kevin Ding (President), Mr. Teo Yew Ping  (Assistant President and President of Liner Business and Singapore Overseas Headquarters), Mr. Michael Zhao (Assistant President) as well as key executives from the Shanghai Operations Headquarters and Singapore Overseas Headquarters.

In the face of market downturn since the fourth quarter of 2022 to the first half of this year, CULines has proactively responded to the changes in the business cycle. Through quick and efficient decision-making, agile organizational structure and professional operational execution, the company achieved results that outperformed the market fundamentals in the first half of 2023. Building on strengthened cost control measures, the company adjusted its vessel capacity to be in line with the reduced market demand. We promptly suspended the Europe and Transpacific services while redeploying vessels to other services. At the same time, optimization efforts were made for short-haul service in Intra-Asia and upgrades for our long haul services to the India, Pakistan and the Middle East. The four BKKMAX  1930TEU vessels delivered last year also allowed us to compete effectively with cost advantages and operational efficiency.

Throughout this year, CULines continued to strengthen its foundation in Asia and further expanded its presence in the Indian subcontinent, Pakistan, the Middle East, and Southeast Asia services. While maintaining stable operations on Cross-Strait and South China-Thailand services, the company also enhanced its joint cooperation and successively upsized vessels on the China-India Express (CIS) and Vietnam-Thailand-Middle East-India (VGX) services. It also optimized the East China-Cambodia-Thailand service (RBC1) and launched new services such as China-East India (FME), China-West India (ICI), and South China-Philippines/Vietnam Pendulum (SPV) to meet the growing demands of our customers. Furthermore, CULines strengthened the operation of self-operated services and aims to provide stable and reliable services to customers.

President Kevin Ding stated during the conference, "Having gone through rapid development and market changes we have gained new and extensive experience from this business cycle. In addition, with the valuable guidance and support of several senior advisors, our team has made significant progress to be even more professional, international and mature in our business management."

Chairman Raymond Chen summarized, "We are aware of the continuous changes in the market environment and have taken decisive actions, actively adapting and seizing opportunities. Our team has made tremendous efforts to provide high-quality shipping services to our customers. We need to strike a balance between agile and efficient organizational decision-making and stable long-term business management strategies. By utilizing the operating mechanism of dual headquarters, both domestic and international, and leveraging the collaborative strength of professional, international, and localized teams, we will promote the company's smooth navigation through the market cycles and achieve high-quality development."

From October 2023 till early next year, CULines is expecting the delivery of two newly built vessels with a capacity of 2400TEU each, as well as two vessels with a capacity of 2700TEU. Two additional vessels with a capacity of 7000TEU are planned to be delivered in the following two years. Currently, loan financing and cooperation for the subsequent six new vessels have been finalized. The company will strategically coordinate and flexibly arrange its capacity based on market demands, supply and demand of shipping capacity, service investment, and asset operations, while ensuring timely vessel deliveries.

The conference reaffirmed that CULines will always prioritize customer needs and adhere to the core business philosophy of " Do good things and build good relationships." It will remain committed to its initial mission of " Carrying Yours Loyally " and strive for mutual growth with customers and partners.