Category: Asia

MIL-OSI Asia-Pac: Mable Chan visits GZ

Source: Hong Kong Information Services

Secretary for Transport & Logistics Mable Chan today visited Guangzhou, meeting government officials there to discuss issues of mutual concern.

Ms Chan held separate meetings with Guangdong’s Department of Transport Director Lin Feiming and Public Security Department Deputy Director Guo Xiangyang.

She also met representatives from the CPC Guangdong Provincial Committee’s Hong Kong & Macao Work Office and Guangdong’s Development & Reform Commission.

The representatives and Ms Chan exchanged views on matters including the operation of the Hong Kong-Zhuhai-Macao Bridge, and promoting the flow of people and goods between Hong Kong and Guangdong. Ms Chan also visited local transportation facilities to learn about their operations.

The transport chief highlighted that Hong Kong maintains close ties with Guangdong, and is striving to pursue innovation in cross-boundary transport policies and to promote a “one-hour living circle” in the Greater Bay Area.

She mentioned that the Northbound Travel for Hong Kong Vehicles policy launched by the Hong Kong Special Administrative Region Government in 2023 has been well received. Around 80,000 Hong Kong private cars had obtained valid permits for travelling to Guangdong as of mid-February this year, meaning that one in every six eligible private cars has joined the scheme, she said.

Ms Chan expressed gratitude to various authorities in Guangdong for their ongoing and strong support for the scheme, and said the Hong Kong SAR Government will work with Mainland authorities to explore arrangements allowing Guangdong private cars to travel to Hong Kong.

MIL OSI Asia Pacific News –

February 21, 2025
MIL-OSI Europe: Latest news – Meeting of 3 March 2025 – Delegation for relations with India
Source: European Parliament

An ordinary meeting of the Delegation for relations with India (D-IN) will be held in Brussels on Monday 3 March 2025 at 17.15-18.45. The meeting will be dedicated to two exchanges of views:

3 March 2025, 17.15 – 17.45 In camera

Exchange of views with Mr Charles Whiteley, Head of Division for South Asia (ASIAPAC.6), following the European Commission visit to India

3 March 2025, 17.45 – 18.45

Exchange of views on the state of play and perspectives of the EU-India relations with:
- Mr Christophe Jaffrelot, Director of Research at CNRS – CERI Sciences Po, Avantha Chair and Professor of Indian Politics and Sociology at the King’s College London, President of the French Association of Political Science; and
- Ms Stefania Benaglia, EU Foreign Policy expert
MIL OSI Europe News –
February 21, 2025
MIL-OSI Europe: Financial statements of the ECB for 2024
Source: European Central Bank
20 February 2025

ECB reports loss of €7.9 billion (2023: loss of €1.3 billion)

Losses will be offset against future profits

The European Central Bank’s (ECB’s) financial statements for 2024 show a loss of €7,944 million, which is comparable to the loss of €7,886 million reported in 2023 before the transfer from risk provisions. In 2023 the full release of the provision for financial risks of €6,620 million reduced the loss for that year to €1,266 million, while in 2024 no losses could be covered by this provision as its balance stood at zero. The 2024 loss, like the loss from the previous year, will remain on the ECB’s balance sheet to be offset against future profits. As a result of the loss, there will be no profit distribution to euro area national central banks for 2024.

The losses come after many years of substantial profits and are the result of policy actions taken by the Eurosystem that were necessary to fulfil its primary mandate of maintaining price stability. These policies required the ECB to expand its balance sheet by purchasing financial assets, mostly with fixed interest rates and long maturities. This was accompanied by a corresponding increase in liabilities, on which the ECB pays interest at variable rates. Thus, increases in the ECB’s key interest rates in 2022 and 2023, which were aimed at combating high inflation in the euro area, resulted in immediate increases in interest expenses on these liabilities, while interest income on the ECB’s assets, in particular on securities purchased under the asset purchase programme (APP) and the pandemic emergency purchase programme (PEPP), did not increase to the same extent.

The ECB may still incur losses in the coming years. Should this be the case, any such losses are expected to be lower than those incurred in 2023 and 2024. Thereafter, the ECB is expected to return to making profits. In any case, the ECB can operate effectively and fulfil its primary mandate of maintaining price stability regardless of any losses. Its financial strength is further underlined by its capital and its substantial revaluation accounts, which together amounted to €59 billion at the end of 2024, €13 billion higher than at the end of 2023.

The ECB’s interest income and expenses in 2024 were as follows:
In 2024, as in 2023, the fact that interest expenses were higher than interest income was mainly driven by the significant interest expense on the ECB’s net TARGET liability. Since this liability was remunerated at the interest rate on the main refinancing operations (MRO rate), the higher average MRO rate of 4.1% in 2024 (2023: 3.8%) resulted in an increase in this expense. The higher average MRO rate also led to increases in the interest income on claims related to the allocation of euro banknotes in circulation and the interest expense payable to the NCBs as remuneration of their claims in respect of foreign reserves transferred to the ECB. The interest income on securities held for monetary policy purposes also increased, mainly on government securities held under the PEPP. The interest income on foreign reserves was higher, largely coming from securities denominated in US dollars.

Write-downs amounted to €269 million (2023: €38 million) and resulted mainly from the decline in the market value of a number of securities held in the US dollar portfolio and the depreciation of the Japanese yen, which led to a reduction in the value of the related currency holding.

Total staff costs increased to €844 million (2023: €676 million), mainly owing to the higher costs of post-employment benefits arising from an amendment to the rules governing the ECB’s pension plans in 2024. Other administrative expenses increased to €626 million (2023: €596 million), mainly owing to higher IT spending in relation to the digital transformation, while also reflecting the impact of inflation.

Supervisory fee income (fees charged to supervised banks to recover expenses incurred by the ECB in the performance of its supervisory tasks) amounted to €681 million (2023: €654 million).

The total size of the ECB’s balance sheet decreased by €33 billion to €641 billion (2023: €673 billion), mainly reflecting the gradual decline in APP holdings owing to redemptions.

Consolidated balance sheet of the Eurosystem

At the end of 2024 the size of the balance sheet of the Eurosystem, which comprises assets and liabilities of the euro area NCBs and the ECB vis-à-vis third parties, stood at €6,428 billion (2023: €6,887 billion). The reduction compared to 2023 was due to the decline in securities held for monetary policy purposes to €4,283 billion (2023: €4,694 billion), mainly owing to redemptions. APP holdings decreased by €353 billion to €2,673 billion, as reinvestment of maturing assets ceased in July 2023, while PEPP holdings decreased by €57 billion to €1,609 billion, with maturing assets being only partially reinvested in the second half of 2024. Furthermore, Eurosystem lending operations decreased to €34 billion (2023: €410 billion), largely as a result of the maturing of the third series of targeted longer-term refinancing operations (TLTRO III). The resulting decline was partially offset by the increase in the euro-equivalent value of the Eurosystem’s holdings of gold to €872 billion (2023: €649 billion) owing to the rise in the market price of gold in euro terms.

For media queries, please contact William Lelieveldt, tel.: +49 69 1344 7316.

Notes

The numbers presented may not add up due to rounding.

Further information on TARGET Services can be found on the ECB’s website.

For more information about the sources of profits and losses of the ECB and the euro area national central banks, see the related explainer.

On 13 March 2024 the Governing Council decided on a set of principles that would guide monetary policy implementation in the future and that, among other key parameters, it would continue to steer the monetary policy stance through the deposit facility rate. In this context, the Governing Council also decided that, as of 1 January 2025, the deposit facility rate would become the basis for the remuneration of (i) TARGET balances due from/to euro area NCBs, (ii) claims related to the allocation of euro banknotes within the Eurosystem, and (iii) liabilities equivalent to the transfer of foreign reserves.

Further details on the financial accounting and reporting policies of the ECB and the Eurosystem and on the ECB’s annual accounts can be found in Decision (EU) 2024/2938 of the European Central Bank of 14 November 2024 on the annual accounts of the European Central Bank (ECB/2024/32) (OJ L, 2024/2938, 11.12.2024) and Guideline (EU) 2024/2941 of the European Central Bank of 14 November 2024 on the legal framework for accounting and financial reporting in the European System of Central Banks (ECB/2024/31) (OJ L, 2024/2941, 11.12.2024) and on the ECB’s website.

The consolidated balance sheet of the Eurosystem is based on provisional data. The final annual consolidated balance sheet of the Eurosystem will be published in June.
MIL OSI Europe News –
February 21, 2025
MIL-OSI Europe: Answer to a written question – Marketing authorisation for an RNA-based vaccine with self-strengthening mRNA – P-000048/2025(ASW)
Source: European Parliament

The Commission shall adopt its decision on Kostaive based on the scientific evaluation of the quality, safety, and efficacy of the vaccine by the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA).

On 12 December 2024 the CHMP concluded that the benefits of the vaccine outweigh any potential risks and recommended granting marketing authorisation for the prevention of COVID-19 in adults[1].

The EMA was aware of concerns expressed by some academics in Japan during its assessment. Research into self-amplifying mRNA vaccines has been ongoing for over two decades. Notably, the self-amplifying mRNA technology, like other mRNA vaccines, does not interfere with a person’s genetic code.

The CHMP identified no major safety concerns, and data indicate that Kostaive’s safety profile is comparable to that of existing mRNA vaccines.

The most common side effects observed in clinical trials were mild, including pain and tenderness at the injection site, tiredness, headache, muscle and joint pain, chills, dizziness, and fever. Patients involved in the studies with Kostaive have been followed for at least one year.

Kostaive’s safety will be closely monitored by EMA and national authorities in the EU to ensure any possible risks are detected and mitigated as early as possible[2]. The assessment report as well as the risk management plan for the vaccine, will be published on EMA’s website.

In the framework of marketing authorisation of medicines, the Commission relies on the scientific advice provided by the EMA’s scientific committees.

Concerns and developments from other jurisdictions in relation to medicines are noted but do not alter the EU’s commitment to upholding its rigorous safety, efficacy, and quality standards.
- [1] https://www.ema.europa.eu/en/medicines/human/EPAR/kostaive
- [2] https://www.ema.europa.eu/en/human-regulatory-overview/public-health-threats/coronavirus-disease-covid-19/covid-19-medicines/safety-covid-19-vaccines
MIL OSI Europe News –
February 21, 2025
MIL-OSI Europe: Briefing – Japan’s Parliament and other political institutions – 20-02-2025

Source: European Parliament

Japan is a constitutional monarchy, with a parliamentary system of government based on the separation of powers. The Emperor is the symbol of the state and does not hold political functions, only performing ceremonial duties. Nevertheless, he can play an important diplomatic role. With Emperor Naruhito’s enthronement in 2019, following his father’s abdication, Japan has entered the Reiwa (beautiful harmony) era. The 2001 administrative reform strengthened the Prime Minister’s leadership in the cabinet. The Chief Cabinet Secretary also plays an important relevant role. Ishiba Shigeru, leader of the Liberal Democratic Party, has been the country’s Prime Minister since September 2024. The Supreme Court is at the top of the judicial system. It is not a constitutional court, despite handling appeals arising from actual disputes. The appointment of its Justices is reviewed by the people at the first general election of the Lower House following their appointment. Japan is a unitary state divided into 47 prefectures. A Metropolitan Government administers the capital, Tokyo. Japan’s 1947 Constitution recognises ‘local self-government.’ Local governments carry out many of the national policies and programmes. They have limited autonomy, also because of their dependence on financial resources from the central government. Japan has a bicameral parliament − the Diet. Although the two chambers share legislative powers, the Lower House (House of Representatives) prevails in the legislative process and is empowered to adopt the final decision on the budget and on the approval of international treaties. Changes in the regional geopolitical environment and in the country’s demographic structure have prompted debates on issues such as the revision of the ‘pacifist’ Article 9 of the Constitution and the distribution of seats among electoral constituencies. This is an update of a briefing published in December 2020.

MIL OSI Europe News –

February 21, 2025
MIL-OSI: Lantronix PoE++ Switches Help Power the World’s Largest DC-Powered Warehouse
Source: GlobeNewswire (MIL-OSI)

IRVINE, Calif., Feb. 20, 2025 (GLOBE NEWSWIRE) — Lantronix Inc. (NASDAQ: LTRX), a global leader of compute and connectivity for IoT solutions enabling AI Edge intelligence, today announced its case study on Mouser Electronics’ new 413,000-square-foot, three-story Global Distribution Center, the world’s largest new Class 4 DC-powered installation. The Lantronix PoE++ switches (SM24TBT2DPB and SM24TBT2DPB-DE) are a vital part of the PoE lighting installation for which Mouser won an IBCon 2024 Digie Award for the Most Intelligent DC-Powered Building.

“Using Lantronix PoE++ switches, we distributed power and controls throughout the Mouser warehouse by using low-voltage DC, which is the best way to create a sustainable building that reduces energy costs while providing a lower carbon footprint and a more comfortable work environment,” said Hannah Walker, chief operating officer of Sinclair Digital, the Authorized Lantronix Valued-Added Reseller that provided the DC digital solution.

Mouser’s dedication to environmental responsibility and adoption of innovative technologies played a role in its decision to incorporate PoE technology, which delivers DC power to devices over copper Ethernet cabling without the need for separate power supplies or outlets, and
fault managed power, a DC power infrastructure that eliminates losses associated with AC-to-DC conversion.

Within enclosures at the ceiling of the new facility, power distribution modules transfer the fault managed power to high voltage DC power for the Lantronix SM24TBT2DPB-DE switches, in turn delivering up to 90W of PoE++ power per port to lighting fixtures, occupancy sensors and other PoE-enabled endpoints. The SM24TBT2DPB switches are also used in racks within the facility to connect more lighting, cameras and wireless access points.

The PoE lighting system was designed by Baird, Hampton & Brown, a leading electrical engineering firm using Sinclair Digital’s DC digital solution package. Installed by TriCO Electric and Polarity Networks, the PoE lighting fixtures were provided by HE Williams using PoE lighting drivers from MHT Technologies with fault managed power from VoltServer. This DC power infrastructure reduces Mouser’s carbon footprint while improving lighting control and operational costs.

Benefits of Mouser’s all DC-powered PoE lighting solution include:
- Reduced energy consumption and related cost savings
- Minimized environmental impact
- Enhanced flexibility by improving lighting control
- Reduced operational costs with fewer maintenance requirements
- Improved lighting environment for warehouse employees
- Ability to move and change lighting as warehouse needs change
“Our Dallas-Fort Worth distribution center now operates on the world’s largest Class 4 power system, providing state-of-the-art lighting for our employees while helping us reduce our energy usage over the long term. Moreover, it provides scalability and flexibility to move or add devices as our needs change, further reducing our long-term costs,” said Pete Shopp, senior vice president of Business Operations at Mouser Electronics.

Visit the complete Mouser case study here.

About Lantronix

Lantronix Inc. is a global leader of compute and connectivity IoT solutions that target high-growth markets, including Smart Cities, Enterprise and Transportation. Lantronix’s products and services empower companies to succeed in the growing IoT markets by delivering customizable solutions that enable AI Edge Intelligence. Lantronix’s advanced solutions include Intelligent Substations infrastructure, Infotainment systems and Video Surveillance, supplemented with advanced Out-of-Band Management (OOB) for Cloud and Edge Computing.

For more information, visit the Lantronix website.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements within the meaning of federal securities laws, including, without limitation, statements related to Lantronix products or leadership team. These forward-looking statements are based on our current expectations and are subject to substantial risks and uncertainties that could cause our actual results, future business, financial condition, or performance to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this news release. The potential risks and uncertainties include, but are not limited to, such factors as the effects of negative or worsening regional and worldwide economic conditions or market instability on our business, including effects on purchasing decisions by our customers; our ability to mitigate any disruption in our and our suppliers’ and vendors’ supply chains due to the COVID-19 pandemic or other outbreaks, wars and recent tensions in Europe, Asia and the Middle East, or other factors; future responses to and effects of public health crises; cybersecurity risks; changes in applicable U.S. and foreign government laws, regulations, and tariffs; our ability to successfully implement our acquisitions strategy or integrate acquired companies; difficulties and costs of protecting patents and other proprietary rights; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our debt agreements; and any additional factors included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, filed with the Securities and Exchange Commission (the “SEC”) on Sept. 9, 2024, including in the section entitled “Risk Factors” in Item 1A of Part I of that report, as well as in our other public filings with the SEC. Additional risk factors may be identified from time to time in our future filings. In addition, actual results may differ as a result of additional risks and uncertainties of which we are currently unaware or which we do not currently view as material to our business. For these reasons, investors are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements we make speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations, except as required by applicable law or the rules of the Nasdaq Stock Market LLC. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.

©2025 Lantronix, Inc. All rights reserved. Lantronix is a registered trademark. Other trademarks and trade names are those of their respective owners.

Lantronix Media Contact:
Gail Kathryn Miller
Corporate Marketing &
Communications Manager
media@lantronix.com

Lantronix Analyst and Investor Contact:
investors@lantronix.com

The MIL Network –
February 21, 2025
MIL-OSI Europe: Chipping in with €1 billion

Source: European Investment Bank

With a background in physics and fluid mechanics, Dirkzwager spent almost a decade in central engineering at Philips in the Netherlands, before moving to Hong Kong, where he was inspired by the city’s entrepreneurial energy and eagerness to grow.

“The approach was all about trial and error,” he says. “Trying things quickly, seeing what worked and moving on to the next idea.” NXP Semiconductors was born with this mindset, as a spinoff from Philips’s semiconductor division in 2006. “That’s when we shifted our focus to customers beyond Philips, serving the global market,” says Dirkzwager. “It was an exciting, hectic time.”

According to a McKinsey study, the global market for semiconductors could reach more than $1 trillion by 2030, up from $600 billion in 2021.

Today, more than half of NXP’s chip design, manufacturing and distribution serves the automotive market. About 25% goes to industrial and Internet of Things customers, and 17% to the mobile sector, including smartphones and tablets.

NXP’s research and development in chips for the automotive sector will be ready to be used in the market in about five years, and the work on post-quantum encryption will be ready for the market in 10 to 20 years. The semiconductor industry’s focus on the future ties in well with the long-term investment preference of the European Investment Bank, making the loan a good fit for both parties.

“The Bank was fast, efficient and competitive,” Dirkzwager says. “It’s a good feeling.”

MIL OSI Europe News –

February 21, 2025
MIL-OSI Asia-Pac: Sports park opening tickets to be sold

Source: Hong Kong Information Services

The Government has arranged for 8,500 tickets to the Kai Tak Sports Park Grand Opening Ceremony to go on sale online from 10am tomorrow.

The ceremony will be held at Kai Tak Stadium at 6.30pm on March 1.

Tickets will be sold on a first-come, first-served basis on URBTIX from 10am tomorrow. Each ticket will incur a nominal fee of $10, and a maximum of two tickets can be purchased at a time.

All ticket proceeds, including the handling charge, will be donated to the Community Chest for charity purposes.

MIL OSI Asia Pacific News –

February 21, 2025
MIL-OSI Asia-Pac: CE, Xinhua head meet

Source: Hong Kong Information Services

Chief Executive John Lee met Xinhua News Agency President Fu Hua at Government House today to discuss enhancing co-operation between the Hong Kong Special Administrative Region Government and the news agency.

Also attending the meeting were Director of the Chief Executive’s Office Carol Yip and Director of Information Services Apollonia Liu.

Welcoming Mr Fu and his delegation to Hong Kong, Mr Lee said that the Xinhua News Agency, the country’s national news agency, is an influential world-class media organisation with a global network for news and information collection.

The Chief Executive expressed gratitude to the news agency for its comprehensive coverage of Hong Kong news over the years, including major policies and measures of the Hong Kong SAR Government, and for disseminating the latest and most accurate information about Hong Kong to the world promptly and professionally.

This enabled overseas companies, investors, talent and tourists to understand the actual developments in Hong Kong and accurately recognise the city’s real and positive image, he added.

Noting that a series of major events will be held in Hong Kong this year, Mr Lee said the Hong Kong SAR Government will continue to leverage the city’s unique advantages under the “one country, two systems” principle, reinforce its connectivity with both the Mainland and the world, and actively explore new points for economic growth.

He also said the Hong Kong SAR Government will work with the news agency to tell the good stories of both China and Hong Kong and enhance co-operation in publicity.

MIL OSI Asia Pacific News –

February 21, 2025

MIL-OSI Economics: RBI to conduct 14-day Variable Rate Repo (VRR) auction under LAF on February 21, 2025

Source: Reserve Bank of India

On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo (VRR) auction on February 21, 2025, Friday, as under:

Sl. No.	Notified Amount (₹ crore)	Tenor (day)	Window Timing	Date of Reversal
1	75,000	14	11:00 AM to 11:30 AM	March 07, 2025 (Friday)

2. The operational guidelines for the auction will be same as given in Reserve Bank’s Press Release 2021-2022/1572 dated January 20, 2022.

Ajit Prasad
Deputy General Manager
(Communications)

Press Release: 2024-2025/2207

MIL OSI Economics –

February 21, 2025

MIL-OSI: Donegal Group Inc. Announces Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

MARIETTA, Pa., Feb. 20, 2025 (GLOBE NEWSWIRE) — Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the fourth quarter and full year ended December 31, 2024.

Significant items for fourth quarter of 2024 (all comparisons to fourth quarter of 2023):

Net premiums earned increased 4.6% to $236.6 million
Combined ratio of 92.9%, compared to 106.8%
Net income of $24.0 million, or 70 cents per diluted Class A share, compared to net loss of $2.0 million, or 6 cents per Class A share
Net investment gains (after tax) of $0.2 million, or 1 cent per diluted Class A share, compared to $1.8 million, or 5 cents per Class A share, are included in net income (loss)

Significant items for full year of 2024 (all comparisons to full year of 2023):

Net premiums earned increased 6.2% to $936.7 million
Combined ratio of 98.6%, compared to 104.4%
Net income of $50.9 million, or $1.53 per diluted Class A share, compared to $4.4 million, or 14 cents per diluted Class A share
Net investment gains (after tax) of $3.9 million, or 12 cents per diluted Class A share, compared to $2.5 million, or 8 cents per diluted Class A share, are included in net income
Book value per share of $15.36 at December 31, 2024, compared to $14.39 at year-end 2023

Financial Summary

	Three Months Ended December 31,						Year Ended December 31,
	2024		2023		% Change		2024		2023		% Change
	(dollars in thousands, except per share amounts)

Income Statement Data
Net premiums earned	$	236,635	$	226,185	4.6	%	$	936,651	$	882,071	6.2	%
Investment income, net	12,050		10,710		12.5		44,918		40,853		10.0
Net investment gains	256		2,243		-88.6		4,981		3,173		57.0
Total revenues	249,954		239,468		4.4		989,605		927,338		6.7
Net income (loss)	24,003		(1,970)		NM²		50,862		4,426		NM
Non-GAAP operating income (loss)¹	23,801		(3,742)		NM		46,927		1,919		NM
Annualized return on average equity	18.1%		-1.7%		19.8 pts		9.9%		0.9%		9.0 pts

Per Share Data
Net income (loss) – Class A (diluted)	$	0.70	$	(0.06)	NM		$	1.53	$	0.14	NM
Net income (loss) – Class B	0.64		(0.06)		NM		1.38		0.11		NM
Non-GAAP operating income (loss) – Class A (diluted)	0.69		(0.11)		NM		1.41		0.06		NM
Non-GAAP operating income (loss) – Class B	0.63		(0.11)		NM		1.27		0.04		NM
Book value	15.36		14.39		6.7	%	15.36		14.39		6.7	%

^¹_{The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).}^²_{Not meaningful.}

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We concluded 2024 with strong performance in the fourth quarter that we believe reflected our unrelenting focus in recent years on execution, whether on strategic initiatives to broaden our market capabilities or on profit-improvement measures to enhance our operating performance. As we move into 2025, we are striving to further enhance our performance while also pursuing intentional, strategic premium growth.

“For the fourth quarter of 2024, our loss ratio improved substantially compared to the prior-year quarter, as premium rate increases contributed to higher net premiums earned and numerous underwriting initiatives we implemented in recent years resulted in lower claim activity. Our weather-related loss ratio compared favorably to both the prior-year quarter and our previous five-year average for the fourth quarter of the year. Net development of reserves for claims incurred in prior years had virtually no effect on the loss ratio for the fourth quarter of 2024 or 2023.

“We effectively mitigated the higher costs associated with our major systems modernization project and higher underwriting-based incentive costs by implementing targeted expense-reduction strategies across our operations. We remain committed to refining the efficiency of our insurance operations, leveraging our substantial investments in technology, data and analytics, to maintain a sustainable expense ratio.”

Mr. Burke concluded, “As the insurance industry landscape continues to evolve, our dedicated team will maintain focus on the effective execution of the strategies we believe will lead to successful achievement of our long-term objectives. We will continue to implement premium rate increases as needed to maintain rate adequacy and achieve targeted risk-adjusted returns. We are also actively pursuing new business opportunities across our regional footprint, concentrating primarily on high quality new commercial middle market and small business accounts, while also seeking strategic new business growth within our personal lines segment. We have refined our state-specific strategies and action plans to meet current market challenges and opportunities. We believe that the successful execution of those actions will allow us to further enhance underwriting performance, drive sustainable measured growth and strengthen our competitive position with our independent agents, ultimately increasing the value of our stockholders’ investment in Donegal Group Inc.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

	Three Months Ended December 31,						Year Ended December 31,
	2024		2023		% Change		2024		2023		% Change
	(dollars in thousands)

Net Premiums Earned
Commercial lines	$	136,701	$	133,602	2.3	%	$	539,683	$	533,029	1.2	%
Personal lines	99,934		92,583		7.9		396,968		349,042		13.7
Total net premiums earned	$	236,635	$	226,185	4.6	%	$	936,651	$	882,071	6.2	%

Net Premiums Written
Commercial lines:
Automobile	$	42,922	$	39,888	7.6	%	$	184,989	$	174,741	5.9	%
Workers’ compensation	20,934		22,283		-6.1		103,533		107,598		-3.8
Commercial multi-peril	50,431		48,010		5.0		213,959		195,632		9.4
Other	9,790		10,544		-7.2		45,439		50,458		-9.9
Total commercial lines	124,077		120,725		2.8		547,920		528,429		3.7
Personal lines:
Automobile	54,078		54,609		-1.0		243,036		215,957		12.5
Homeowners	30,958		34,653		-10.7		140,613		139,688		0.7
Other	2,329		2,706		-13.9		10,712		11,623		-7.8
Total personal lines	87,365		91,968		-5.0		394,361		367,268		7.4
Total net premiums written	$	211,442	$	212,693	-0.6%		$	942,281	$	895,697	5.2	%

Net Premiums Written

The 0.6% decrease in net premiums written¹ for the fourth quarter of 2024 compared to the fourth quarter of 2023, as shown in the table above, represents the combination of 2.8% growth in commercial lines net premiums written and a 5.0% decrease in personal lines net premiums written. The $1.3 million decrease in net premiums written for the fourth quarter of 2024 compared to the fourth quarter of 2023 included:

Commercial Lines: $3.3 million increase that we attribute primarily to solid premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in classes of business we have targeted for profit improvement.
Personal Lines: $4.6 million decrease that we attribute primarily to planned attrition due to non-renewal actions and lower new business writings, offset partially by a continuation of renewal premium rate increases and solid policy retention.

The $46.6 million increase in net premiums written for the full year of 2024 compared to the full year of 2023 included:

Commercial Lines: $19.5 million increase that we attribute primarily to strong premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in states we exited or classes of business we have targeted for profit improvement.
Personal Lines: $27.1 million increase that we attribute primarily to a continuation of renewal premium rate increases and solid policy retention, offset partially by planned attrition due to non-renewal actions and lower new business writings.

Underwriting Performance

We evaluate the performance of our commercial lines and personal lines segments primarily based upon the underwriting results of our insurance subsidiaries as determined under statutory accounting practices. The following table presents comparative details with respect to the GAAP and statutory combined ratios¹ for the three months and full years ended December 31, 2024 and 2023:

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023

GAAP Combined Ratios (Total Lines)
Loss ratio – core losses	52.3	%	61.8	%	54.0	%	57.5	%
Loss ratio – weather-related losses	3.3		5.9		7.2		8.3
Loss ratio – large fire losses	4.0		4.8		4.9		5.2
Loss ratio – net prior-year reserve development	-0.2		-0.4		-1.6		-1.9
Loss ratio	59.8		72.1		64.5		69.1
Expense ratio	32.8		34.1		33.7		34.7
Dividend ratio	0.3		0.6		0.4		0.6
Combined ratio	92.9	%	106.8	%	98.6	%	104.4	%

Statutory Combined Ratios
Commercial lines:
Automobile	115.7	%	104.8	%	102.6	%	97.3	%
Workers’ compensation	105.6		107.9		104.4		96.6
Commercial multi-peril	79.4		107.8		95.0		112.3
Other	84.7		95.0		80.0		85.5
Total commercial lines	97.3		105.8		98.2		101.6
Personal lines:
Automobile	96.5		119.7		97.4		109.7
Homeowners	76.2		101.3		99.6		108.6
Other	106.3		59.2		99.5		75.8
Total personal lines	89.5		111.1		98.3		108.2
Total lines	94.0	%	107.8	%	98.3	%	104.2	%

Loss Ratio – Fourth Quarter

For the fourth quarter of 2024, the loss ratio decreased to 59.8%, compared to 72.1% for the fourth quarter of 2023. The core loss ratio, which excludes weather-related losses, large fire losses and net development of reserves for losses incurred in prior accident years, was 52.3% for the fourth quarter of 2024, which improved significantly compared to 61.8% for the fourth quarter of 2023. For the commercial lines segment, the core loss ratio of 55.2% for the fourth quarter of 2024 improved from 59.6% for the fourth quarter of 2023, primarily as the result of ongoing premium rate increases in all lines except workers’ compensation and reduced exposures in underperforming states and classes of business. For the personal lines segment, the core loss ratio of 48.4% for the fourth quarter of 2024 decreased significantly from 65.1% for the fourth quarter of 2023, due largely to the favorable impact of premium rate increases on net premiums earned for that segment.

Weather-related losses of $7.7 million, or 3.3 percentage points of the loss ratio, for the fourth quarter of 2024 decreased from $13.4 million, or 5.9 percentage points of the loss ratio, for the fourth quarter of 2023. Our insurance subsidiaries did not incur significant losses from any single weather event during the fourth quarters of 2024 or 2023. The impact of weather-related loss activity to the loss ratio for the fourth quarter of 2024 was lower than our previous five-year average of 5.2 percentage points for fourth quarter weather-related losses.

Large fire losses, which we define as individual fire losses in excess of $50,000, were $9.5 million, or 4.0 percentage points of the loss ratio, for the fourth quarter of 2024, compared to $10.8 million, or 4.8 percentage points of the loss ratio, for the fourth quarter of 2023. The modest decrease primarily reflected lower average severity in homeowner fire losses.

Net development of reserves for losses incurred in prior accident years had virtually no impact to the loss ratio for the fourth quarter of 2024 or 2023. For the fourth quarter of 2024, our insurance subsidiaries experienced unfavorable development primarily in personal automobile and commercial automobile losses that was offset by favorable development in commercial multi-peril losses and other lines of business. For the fourth quarter of 2023, our insurance subsidiaries experienced favorable development in personal automobile, workers’ compensation, homeowners and commercial automobile losses, offset partially by unfavorable development in commercial multi-peril and other commercial losses.

Loss Ratio – Full Year

For the full year of 2024, the loss ratio decreased to 64.5%, compared to 69.1% for the full year of 2023. The 2024 core loss ratio decreased by 3.5 percentage points to 54.0% from 57.5% for 2023. For the commercial lines segment, the core loss ratio of 54.4% for 2024 improved from 56.5% for 2023, primarily as the result of ongoing premium rate increases in all lines except workers’ compensation and reduced exposures in underperforming states and classes of business. For the personal lines segment, the core loss ratio of 53.5% for 2024 decreased from 59.1% in 2023, due largely to the favorable impact of premium rate increases on net premiums earned for that segment.

Weather-related losses for the full year of 2024 were $67.7 million, or 7.2 percentage points of the loss ratio, compared to $72.9 million, or 8.3 percentage points of the loss ratio, for the full year of 2023. The loss ratio impact of weather-related losses for the full year of 2024 was in line with the previous five-year average of 7.0 percentage points of the loss ratio.

Large fire losses were $45.8 million, or 4.9 percentage points of the loss ratio, for the full year of 2024, relatively in line with $45.4 million, or 5.2 percentage points of the loss ratio, for the full year of 2023.

Net favorable development of reserves for losses incurred in prior accident years of $15.0 million reduced the loss ratio for the full year of 2024 by 1.6 percentage points. For the full year of 2024, our insurance subsidiaries experienced favorable development in losses primarily in the commercial multi-peril, personal automobile and homeowners lines of business, offset partially by unfavorable development in the workers’ compensation and commercial automobile lines of business. Net favorable development of reserves for losses incurred in prior accident years of $16.7 million reduced the loss ratio for the full year of 2023 by 1.9 percentage points. For the full year of 2023, our insurance subsidiaries experienced favorable development in losses primarily in the commercial automobile, personal automobile, workers’ compensation and homeowners lines of business.

Expense Ratio

The expense ratio was 32.8% for the fourth quarter of 2024, compared to 34.1% for the fourth quarter of 2023. The expense ratio was 33.7% for the full year of 2024, compared to 34.7% for the full year of 2023. The decrease in the expense ratios for the fourth quarter and full year of 2024 primarily reflected the impacts of various expense reduction initiatives, including agency incentive program revisions, commission schedule adjustments, targeted staffing reductions, and hiring restrictions for open employment positions, among others. These impacts were offset partially by an increase in underwriting-based incentive costs as well as higher technology systems-related expenses that were primarily due to increased costs related to our ongoing systems modernization project, a portion of which Donegal Mutual Insurance Company allocates to our insurance subsidiaries. We expect the impact from allocated costs from Donegal Mutual Insurance Company to our insurance subsidiaries related to the ongoing systems modernization project peaked at approximately 1.3 percentage points of the expense ratio for the full year of 2024 and will subside gradually in 2025 and subsequent years.

Investment Operations

Donegal Group’s investment strategy is to generate an appropriate amount of after-tax income on its invested assets while minimizing credit risk through investment in high-quality securities. As a result, we had invested 95.6% of our consolidated investment portfolio in diversified, highly rated and marketable fixed-maturity securities at December 31, 2024.

	December 31, 2024					December 31, 2023
	Amount			%		Amount			%
	(dollars in thousands)
Fixed maturities, at carrying value:
U.S. Treasury securities and obligations of U.S.
government corporations and agencies	$	170,423		12.3	%	$	176,991		13.3	%
Obligations of states and political subdivisions	409,560			29.5		415,280			31.3
Corporate securities	440,552			31.8		399,640			30.1
Mortgage-backed securities	304,459			22.0		278,260			21.0
Allowance for expected credit losses	(1,388		)	-0.1		(1,326		)	-0.1
Total fixed maturities	1,323,606			95.5		1,268,845			95.6
Equity securities, at fair value	36,808			2.7		25,903			2.0
Short-term investments, at cost	24,558			1.8		32,306			2.4
Total investments	$	1,384,972		100.0	%	$	1,327,054		100.0	%

Average investment yield	3.3%					3.1%
Average tax-equivalent investment yield	3.4%					3.2%
Average fixed-maturity duration (years)	5.2					4.3

Net investment income of $12.1 million for the fourth quarter of 2024 increased 12.5% compared to $10.7 million in net investment income for the fourth quarter of 2023, due primarily to higher average invested assets and an increase in the average investment yield compared to the prior-year fourth quarter. Net investment income of $44.9 million for the full year of 2024 increased 10.0% compared to the full year of 2023, due primarily to higher average invested assets and an increase in the average investment yield compared to the prior year.

Net investment gains were minimal for the fourth quarter of 2024, compared to $2.2 million for the fourth quarter of 2023. We attribute the gains to the quarterly increases in the market value of the equity securities held at the end of the respective periods.

Net investment gains were $5.0 million for the full year of 2024, compared to $3.2 million for the full year of 2023. We attribute the gains to the change in the market value of the equity securities held at the end of the respective periods.

Our book value per share was $15.36 at December 31, 2024, compared to $14.39 at December 31, 2023, as increases from net income and unrealized gains within our available-for-sale fixed-maturity portfolio during 2024 were partially offset by the dividends we declared during the year.

Definitions of Non-GAAP Financial Measures

We prepare our consolidated financial statements on the basis of GAAP. Our insurance subsidiaries also prepare financial statements based on statutory accounting principles state insurance regulators prescribe or permit (“SAP”). In addition to using GAAP-based performance measurements, we also utilize certain non-GAAP financial measures that we believe provide value in managing our business and for comparison to the financial results of our peers. These non-GAAP measures are net premiums written, operating income or loss and statutory combined ratio.

Net premiums written and operating income or loss are non-GAAP financial measures investors in insurance companies commonly use. We define net premiums written as the amount of full-term premiums our insurance subsidiaries record for policies effective within a given period less premiums our insurance subsidiaries cede to reinsurers. We define operating income or loss as net income or loss excluding after-tax net investment gains or losses, after-tax restructuring charges and other significant non-recurring items. Because our calculation of operating income or loss may differ from similar measures other companies use, investors should exercise caution when comparing our measure of operating income or loss to the measure of other companies.

The following table provides a reconciliation of net premiums earned to net premiums written for the periods indicated:

	Three Months Ended December 31,								Year Ended December 31,
	2024			2023			% Change		2024		2023		% Change
	(dollars in thousands)

Reconciliation of Net Premiums
Earned to Net Premiums Written
Net premiums earned	$	236,635		$	226,185		4.6	%	$	936,651	$	882,071	6.2	%
Change in net unearned premiums	(25,193		)	(13,492		)	86.7		5,630		13,626		-58.7
Net premiums written	$	211,442		$	212,693		-0.6	%	$	942,281	$	895,697	5.2	%

The following table provides a reconciliation of net income (loss) to operating income (loss) for the periods indicated:

	Three Months Ended December 31,								Year Ended December 31,
	2024			2023			% Change		2024			2023			% Change
	(dollars in thousands, except per share amounts)

Reconciliation of Net Income (Loss)
to Non-GAAP Operating Income (Loss)
Net income (loss)	$	24,003		$	(1,970	)	NM		$	50,862		$	4,426		NM
Investment gains (after tax)		(202	)		(1,772	)	-88.6	%		(3,935	)		(2,507	)	57.0	%
Non-GAAP operating income (loss)	$	23,801		$	(3,742	)	NM		$	46,927		$	1,919		NM

Per Share Reconciliation of Net Income (Loss)
to Non-GAAP Operating Income (Loss)
Net income (loss) – Class A (diluted)	$	0.70		$	(0.06	)	NM		$	1.53		$	0.14		NM
Investment gains (after tax)		(0.01	)		(0.05	)	-80.0	%		(0.12	)		(0.08	)	50.0	%
Non-GAAP operating income (loss) – Class A	$	0.69		$	(0.11	)	NM		$	1.41		$	0.06		NM

Net income (loss) – Class B	$	0.64		$	(0.06	)	NM		$	1.38		$	0.11		NM
Investment gains (after tax)		(0.01	)		(0.05	)	-80.0	%		(0.11	)		(0.07	)	57.1	%
Non-GAAP operating income (loss) – Class B	$	0.63		$	(0.11	)	NM		$	1.27		$	0.04		NM

The statutory combined ratio is a standard non-GAAP measurement of underwriting profitability that is based upon amounts determined under SAP. The statutory combined ratio is the sum of:

the statutory loss ratio, which is the ratio of calendar-year incurred losses and loss expenses, excluding anticipated salvage and subrogation recoveries, to premiums earned;
the statutory expense ratio, which is the ratio of expenses incurred for net commissions, premium taxes and underwriting expenses to premiums written; and
the statutory dividend ratio, which is the ratio of dividends to holders of workers’ compensation policies to premiums earned.

The statutory combined ratio does not reflect investment income, federal income taxes or other non-operating income or expense. A statutory combined ratio of less than 100% generally indicates underwriting profitability.

Dividend Information

On December 19, 2024, we declared regular quarterly cash dividends of $0.1725 per share for our Class A common stock and $0.155 per share for our Class B common stock, which we paid on February 18, 2025 to stockholders of record as of the close of business on February 4, 2025.

Pre-Recorded Webcast

At approximately 8:30 am EDT on Thursday, February 20, 2025, we will make available in the Investors section of our website a pre-recorded audio webcast featuring management commentary on our quarterly and annual results and general business updates. You may listen to the pre-recorded webcast by accessing the link on our website at http://investors.donegalgroup.com. A supplemental investor presentation is also available via our website.

About the Company

Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in certain Mid-Atlantic, Midwestern, Southern and Southwestern states. Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group Inc. conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best rating of A (Excellent).

The Class A common stock and Class B common stock of Donegal Group Inc. trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively. We are focused on several primary strategies, including achieving sustained excellent financial performance, strategically modernizing our operations and processes to transform our business, capitalizing on opportunities to grow profitably and providing superior experiences to our agents, policyholders and employees.

Safe Harbor

We base all statements contained in this release that are not historic facts on our current expectations. Such statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and necessarily involve risks and uncertainties. Forward-looking statements we make may be identified by our use of words such as “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “seek,” “estimate” and similar expressions. Our actual results could vary materially from our forward-looking statements. The factors that could cause our actual results to vary materially from the forward-looking statements we have previously made include, but are not limited to, adverse litigation and other trends that could increase our loss costs (including social inflation, labor shortages and escalating medical, automobile and property repair costs), adverse and catastrophic weather events (including from changing climate conditions), our ability to maintain profitable operations (including our ability to underwrite risks effectively and charge adequate premium rates), the adequacy of the loss and loss expense reserves of our insurance subsidiaries, the availability and successful operation of the information technology systems our insurance subsidiaries utilize, the successful development of new information technology systems to allow our insurance subsidiaries to compete effectively, business and economic conditions in the areas in which we and our insurance subsidiaries operate, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, legal and judicial developments (including those related to COVID-19 business interruption coverage exclusions), changes in regulatory requirements, our ability to attract and retain independent insurance agents, changes in our A.M. Best rating and the other risks that we describe from time to time in our filings with the Securities and Exchange Commission. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Investor Relations Contacts

Karin Daly, Vice President, The Equity Group Inc.
Phone: (212) 836-9623
E-mail: kdaly@equityny.com

Jeffrey D. Miller, Executive Vice President & Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com

Financial Supplement

Donegal Group Inc.
Consolidated Statements of Income (Loss)
(unaudited; in thousands, except share data)

	Quarter Ended December 31,
	2024		2023

Net premiums earned	$	236,635	$	226,185
Investment income, net of expenses	12,050		10,710
Net investment gains	256		2,243
Lease income	77		85
Installment payment fees	936		245
Total revenues	249,954		239,468

Net losses and loss expenses	141,435		163,154
Amortization of deferred acquisition costs	39,853		39,149
Other underwriting expenses	37,649		38,032
Policyholder dividends	826		1,225
Interest	269		156
Other expenses, net	255		233
Total expenses	220,287		241,949

Income (loss) before income tax expense (benefit)	29,667		(2,481		)
Income tax expense (benefit)	5,664		(511		)

Net income (loss)	$	24,003	$	(1,970	)

Net income (loss) per common share:
Class A – basic	$	0.71	$	(0.06	)
Class A – diluted	$	0.70	$	(0.24	)
Class B – basic and diluted	$	0.64	$	(0.06	)

Supplementary Financial Analysts’ Data

Weighted-average number of shares
outstanding:
Class A – basic	28,979,432		27,702,646
Class A – diluted	29,224,696		27,726,318
Class B – basic and diluted	5,576,775		5,576,775

Net premiums written	$	211,442	$	212,693

Book value per common share
at end of period	$	15.36	$	14.39

Donegal Group Inc.
Consolidated Statements of Income
(unaudited; in thousands, except share data)

	Year Ended December 31,
	2024		2023

Net premiums earned	$	936,651	$	882,071
Investment income, net of expenses	44,918		40,853
Net investment gains	4,981		3,173
Lease income	314		347
Installment payment fees	2,741		894
Total revenues	989,605		927,338

Net losses and loss expenses	604,118		609,178
Amortization of deferred acquisition costs	160,311		154,214
Other underwriting expenses	155,254		151,748
Policyholder dividends	4,073		5,313
Interest	946		620
Other expenses, net	2,564		1,201
Total expenses	927,266		922,274

Income before income tax expense	62,339		5,064
Income tax expense	11,477		638

Net income	$	50,862	$	4,426

Net income per common share:
Class A – basic and diluted	$	1.53	$	0.14
Class B – basic and diluted	$	1.38	$	0.11

Supplementary Financial Analysts’ Data

Weighted-average number of shares
outstanding:
Class A – basic	28,155,276		27,469,250
Class A – diluted	28,245,356		27,562,785
Class B – basic and diluted	5,576,775		5,576,775

Net premiums written	$	942,281	$	895,697

Book value per common share
at end of period	$	15.36	$	14.39

Donegal Group Inc.
Consolidated Balance Sheets
(in thousands)

			December 31,		December 31,
			2024		2023
			(unaudited)

ASSETS
Investments:
	Fixed maturities:
		Held to maturity, at amortized cost	$	705,714	$	679,497
		Available for sale, at fair value	617,892		589,348
	Equity securities, at fair value		36,808		25,903
	Short-term investments, at cost		24,558		32,306
		Total investments	1,384,972		1,327,054
Cash			52,926		23,792
Premiums receivable			181,107		179,592
Reinsurance receivable			420,742		441,431
Deferred policy acquisition costs			73,347		75,043
Prepaid reinsurance premiums			176,162		168,724
Other assets			46,776		50,658
		Total assets	$	2,336,032	$	2,266,294

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
	Losses and loss expenses		$	1,120,985	$	1,126,157
	Unearned premiums		612,476		599,411
	Accrued expenses		2,917		3,947
	Borrowings under lines of credit		35,000		35,000
	Other liabilities		18,878		22,034
		Total liabilities	1,790,256		1,786,549
Stockholders’ equity:
	Class A common stock		329		308
	Class B common stock		56		56
	Additional paid-in capital		369,680		335,694
	Accumulated other comprehensive loss		(28,200)		(32,882)
	Retained earnings		245,137		217,795
	Treasury stock		(41,226)		(41,226)
		Total stockholders’ equity	545,776		479,745
		Total liabilities and stockholders’ equity	$	2,336,032	$	2,266,294

The MIL Network –

February 21, 2025

MIL-OSI: Black Gold Announces Commencement of Drilling in the Illinois Basin

Source: GlobeNewswire (MIL-OSI)

VANCOUVER, B.C., Feb. 20, 2025 (GLOBE NEWSWIRE) — BGX – Black Gold Exploration Corp. (the “Company” or “BGX) (CSE: BGX) (FRE: P30) is pleased to announce that drilling has commenced on the Fritz 2-30 oil and gas well (the “Well”) in Clay County, Indiana. Earlier this month, BGX acquired a 10% working interest in the Well and an option to participate in any offset developmental wells in a 210-acre area of mutual interest from the operator, Adler Energy, LLC (the “Operator”).

This prospect offsets the Fritz 1 well, which was drilled approximately 17 years ago and discovered both oil and gas pay horizons, but never produced due to a variety of factors, including a drop in oil prices at the time. The Well is in a known productive oil zone known as the Terra Haute Reef Bank, in Southwestern Indiana.

“We believe that the drilling in this region is the Company’s most significant short-term milestone to date and we are delighted to have the opportunity to participate in the Well, which not only gives us the potential for early cash flow but is also aligned with our longer-term plan to expand our footprint in the Illinois Basin,” commented Francisco Gulisano, Chief Executive Officer of BGX.

The Illinois Basin has a history of producing 10 to 12 million barrels of oil annually.¹ The Operator has completed an 8 square mile 3D seismic evaluation of the area, including the Fritz 2-30, showing both shallow and deeper stacked pay horizons. The Well plans to test a minimum of ten potential oil pay zones. Deep seated fractures clearly visible on 3D seismic are demonstrating migratory pathways for oil into multiple zones with high porosity, including the Devonian, Trenton, St. Peter Sand, Black River and the Knox. These zones all show over 100 feet of closure, giving room for large reservoirs of oil.

“Based on the 3D seismic and other data we have complied, our experienced technical team could not be more excited about the Fritz 2-30 well and we are very happy to be working with BGX in discovering what we believe is tremendous untapped value,” commented John Miller, President of Adler Energy.

“Given the history of the Fritz wells, we are looking to take advantage of overlooked opportunities to hopefully not only jump start our cash flows but also unlock value in one of the oldest and most productive oil basins in North American history,” concluded Mr. Gulisano.

On behalf of the Company,
Francisco Gulisano
236-266-5174
Chief Executive Officer

About BGX

BGX – Black Gold Exploration Corp. (CSE: BGX) (FRE: P30) is an oil and gas exploration company dedicated to creating shareholder value through the acquisition, exploration and development of oil and gas projects. BGX currently has assets in Argentina and the United States of America. For more information visit https://www.bgxcorp.com.

Forward-Looking Statements

The information in this news release includes certain information and statements about management’s view of future events, expectations, plans, and prospects that constitute forward-looking statements. These statements are based upon assumptions that are subject to risks and uncertainties. Forward- looking statements in this news release include, but are not limited to statements respecting: (i) drilling of the Well and the purpose thereof; (ii) the potential for early cash flow; (iii) the Company’s plan to expand its footprint in the Illinois Basin and (iv) the Company’s hope to unlock value in one of the oldest and most productive oil basins in North American history. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements, or otherwise. For a comprehensive overview of all risks that may impact the Company, please see the Company’s continuous disclosure documents filed on SEDAR+.

¹ https://www.usgs.gov/publications/new-albany-shale-illinois-emerging-play-or-prolific-source

Neither the CSE nor the CSE’s Regulation Services Provider (as that term is defined in the policies of the CSE) accept responsibility for the accuracy of this release.

The MIL Network –

February 21, 2025

MIL-OSI: Cenovus Announces Fourth-Quarter and Full-Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Feb. 20, 2025 (GLOBE NEWSWIRE) — Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced its fourth-quarter and full-year 2024 financial and operating results. In the quarter, the company generated over $2.0 billion in cash from operating activities, $1.6 billion of adjusted funds flow and $123 million of free funds flow. The Upstream business continued to deliver strong performance, with production of 816,000 barrels of oil equivalent per day (BOE/d)¹ in the quarter, including a new quarterly Oil Sands production record of 628,500 BOE/d. In the Downstream, total crude throughput increased by almost 24,000 barrels per day (bbls/d) from the previous quarter to 666,700 bbls/d, representing an aggregate utilization rate of 93%.

Highlights

Delivered quarterly Upstream production of 816,000 BOE/d, an increase of 6% relative to the previous quarter and 1% relative to the fourth quarter of 2023.
Highest-ever quarterly and annual Oil Sands production rates at 628,500 BOE/d and 610,700 BOE/d respectively, including record annual rates at both Foster Creek and the Lloydminster thermal assets.
Improving quarterly Downstream operating performance, with utilization of 97% in Canadian Refining and 92% in U.S. Refining. U.S. Refining operating expenses, excluding turnaround costs, of $10.89 per barrel were down 18% relative to the fourth quarter of 2023.
Achieved significant milestones on Cenovus’s major Upstream growth projects, including mechanical completion of the Narrows Lake pipeline, executing the SeaRose floating production, storage and offloading (FPSO) vessel life extension dry dock and reaching mechanical completion of both the concrete gravity structure (CGS) and topsides for the West White Rose project.
Returned $706 million to shareholders in the fourth quarter, including $108 million through share purchases, $348 million through common and preferred share dividends and $250 million through the redemption of Cenovus Series 3 preferred shares on December 31, 2024.

“We delivered strong operating performance this quarter. Our industry leading Oil Sands assets set production records and our Downstream business continued to demonstrate improvements in reliability and unit costs,” said Jon McKenzie, Cenovus President & Chief Executive Officer. “In 2025, we will build on this momentum, focusing on operational execution while advancing our key growth projects to deliver long-term value for shareholders.”

Financial summary

($ millions, except per share amounts)	2024 Q4	2024 Q3	2023 Q4	2024 FY	2023 FY
Cash from (used in) operating activities	2,029	2,474	2,946	9,235	7,388
Adjusted funds flow²	1,601	1,960	2,062	8,164	8,803
Per share (diluted)²	0.87	1.05	1.08	4.38	4.54
Capital investment	1,478	1,346	1,170	5,015	4,298
Free funds flow²	123	614	892	3,149	4,505
Excess free funds flow²	(416)	146	471	1,297	2,466
Net earnings (loss)	146	820	743	3,142	4,109
Per share (diluted)	0.07	0.42	0.32	1.67	2.09
Long-term debt, including current portion	7,534	7,199	7,108	7,534	7,108
Net debt	4,614	4,196	5,060	4,614	5,060

Production and throughput

(before royalties, net to Cenovus)	2024 Q4	2024 Q3	2023 Q4	2024 FY	2023 FY
Oil and NGLs (bbls/d)¹	670,600	630,500	662,600	653,800	640,000
Conventional natural gas (MMcf/d)	873.3	844.6	876.3	860.2	832.6
Total upstream production (BOE/d)¹	816,000	771,300	808,600	797,200	778,700
Total downstream throughput (bbls/d)	666,700	642,900	579,100	646,900	560,400

¹ See Advisory for production by product type.
² Non-GAAP financial measure or contains a non-GAAP financial measure. See Advisory.

Fourth-quarter results

Operating¹

Cenovus’s total revenues were $12.8 billion in the fourth quarter, down from $13.8 billion in the previous quarter, primarily due to lower commodity prices. Upstream revenues were $7.3 billion, flat from the third quarter, while Downstream revenues were $7.8 billion, down from $8.8 billion in the prior quarter.

Total operating margin³ was $2.3 billion, compared with $2.4 billion in the previous quarter. Upstream operating margin⁴ was $2.7 billion, consistent with the third quarter and benefiting from higher production volumes relative to the prior quarter, offset by lower benchmark oil prices and timing differences between production and sales. The company had a Downstream operating margin⁴ shortfall of $396 million in the fourth quarter due to weak refining crack spreads and a narrow heavy oil price differential, compared with a shortfall of $323 million in the previous quarter. Operating margin in the U.S. Refining segment included $45 million of first in, first out (FIFO) losses and $128 million of turnaround expenses incurred during the Lima Refinery turnaround.

Total Upstream production was 816,000 BOE/d in the fourth quarter, an increase of 44,700 BOE/d from the prior quarter, reflecting record quarterly production from the company’s Oil Sands segment of 628,500 BOE/d. Christina Lake production was 251,400 bbls/d, compared with 211,800 bbls/d in the third quarter, as a result of completing planned turnaround activity in September. Foster Creek production was 195,200 bbls/d compared with 198,000 bbls/d in the third quarter, while Sunrise production increased to 53,100 bbls/d from 50,400 bbls/d in the third quarter as production from new well pads continued to ramp up. Production from the Lloydminster thermal assets declined slightly to 108,900 bbls/d, while Lloydminster conventional heavy oil output increased to 18,000 bbls/d from 16,300 bbls/d in the prior quarter. Production in the Conventional segment was 117,800 BOE/d, a slight decrease from 118,100 BOE/d in the third quarter.

In the Offshore segment, production was 69,700 BOE/d compared with 65,500 BOE/d in the third quarter. In Asia Pacific, production volumes were 62,200 BOE/d, higher than the previous quarter partially due to increased production at the MAC field in Indonesia and planned maintenance at Liwan in the third quarter. In the Atlantic, production was 7,500 bbls/d, a decrease from 9,000 bbls/d in the prior quarter due to unplanned downtime at the non-operated Terra Nova field. The SeaRose FPSO is on station and reconnected to the White Rose field, with production expected to resume by the end of February.

Total refining throughput in the fourth quarter was 666,700 bbls/d, up from 642,900 bbls/d in the third quarter. Throughput in Canadian Refining was 104,400 bbls/d, representing a utilization rate of 97%, compared with 99,400 bbls/d in the previous quarter. The increase was primarily due to returning to full rates following completion of turnaround activity at the Lloydminster Upgrader early in the third quarter.

In U.S. Refining, crude throughput was 562,300 bbls/d, representing a utilization rate of 92%, compared with 543,500 bbls/d in the third quarter. Throughput increased primarily due to improved reliability, partially offset by economic run cuts as market crack spreads weakened through the quarter. U.S. Refining revenues were $6.6 billion relative to $7.2 billion in the prior quarter due to lower refined product pricing. Market capture⁵ in the U.S. improved to 45% relative to 35% in the previous quarter primarily due to reduced inventory timing impacts (FIFO). Market capture in the fourth quarter was negatively impacted by the Lima Refinery turnaround, narrower heavy crude oil differentials, and a quarterly FIFO loss of $45 million.

³ Non-GAAP financial measure. Total operating margin is the total of Upstream operating margin plus Downstream operating margin. See Advisory.
⁴ Specified financial measure. See Advisory.
⁵ Contains a non-GAAP financial measure. See Advisory.

Financial

Cash from operating activities in the fourth quarter, which includes changes in non-cash working capital, was $2.0 billion, compared with $2.5 billion in the third quarter. Adjusted funds flow was $1.6 billion, compared with $2.0 billion in the prior quarter and there was a shortfall of excess free funds flow (EFFF) of $416 million, compared with $146 million in the prior quarter. Net earnings in the fourth quarter were $146 million, compared with $820 million in the previous quarter. Fourth-quarter financial results were impacted by lower benchmark prices relative to the third quarter including seasonally weak refining market crack spreads in the Chicago market.

Long-term debt, including the current portion, was $7.5 billion at December 31, 2024. Net debt increased from the prior quarter to $4.6 billion at December 31, 2024, primarily due to the shortfall in EFFF of $416 million and the redemption of $250 million of Cenovus Series 3 preferred shares on December 31, 2024, partially offset by a release of non-cash working capital. The company continues to steward toward net debt of $4.0 billion and returning 100% of EFFF to shareholders over time in accordance with its financial framework.

Growth projects and capital investments

In the Oil Sands segment, the Narrows Lake pipeline, which will connect the field to the Christina Lake processing facility, was mechanically completed in the fourth quarter. We plan to commence steam injection in the spring and the project remains on track for first oil mid-2025. At Sunrise, production continued to ramp up in the fourth quarter after the company brought two new well pads online in the third quarter. One additional well pad will be added in early 2025. The optimization project at Foster Creek is now 64% complete and remains on schedule for startup in 2026, with most modules and major pieces of equipment in place and pipe installation underway.

In the fourth quarter, the West White Rose project achieved mechanical completion of both the CGS and topsides, and work to prepare the seabed for installation of the CGS at the field location was also completed. The focus of the project in 2025 will be on the installation and commissioning of the platform. The West White Rose project is now approximately 88% complete and progressing on-schedule towards first oil in 2026.

Full-year results

In 2024, Cenovus’s total Upstream production averaged 797,200 BOE/d, compared with 778,700 BOE/d in 2023, including record annual volumes from the Oil Sands assets and a 5% increase in Offshore volumes. Oil Sands production was 610,700 BOE/d, including approximately 196,000 bbls/d at Foster Creek, a new annual high for the asset, and 234,200 bbls/d at Christina Lake, which successfully completed a turnaround in the third quarter. Full-year production from the Lloydminster thermal assets was also an annual record at 111,500 bbls/d, compared with 104,100 bbls/d in 2023, reflecting a successful redevelopment program and well optimization. Sunrise production was 49,600 bbls/d compared with 48,900 bbls/d in 2023 and Lloydminster conventional heavy oil production increased to 17,600 bbls/d from 16,700 bbls/d in the previous year. Conventional production was 119,900 BOE/d, in line with 2023. Offshore total production was approximately 66,600 BOE/d, compared with 63,400 BOE/d in the prior year, with 2023 impacted by a temporary disconnection of a subsea umbilical in Liwan by a third-party vessel.

Total Downstream throughput averaged 646,900 bbls/d in 2024, a 15% increase from 560,400 bbls/d in 2023. Canadian Refining crude oil throughput was 90,500 bbls/d, compared to 100,700 bbls/d in 2023, as the Lloydminster Upgrader completed the largest turnaround in the asset’s history early in the third quarter of 2024. U.S. Refining crude oil throughput increased to 556,400 bbls/d in 2024 compared with 459,700 bbls/d in 2023, reflecting the first full year of production from Superior and Toledo within the Cenovus portfolio.

Total revenues were $54.3 billion in 2024 and total operating margin was $10.8 billion compared with revenues of $52.2 billion and total operating margin of $11.0 billion in 2023. The year-over-year increase in total revenues was largely due to higher production and narrowing heavy Canadian crude differentials following the startup of the Trans Mountain pipeline expansion project. Operating margin was slightly reduced due to narrower downstream crack spreads, higher turnaround costs and increased transportation and blending costs.

Cash from operating activities was $9.2 billion for 2024 compared with $7.4 billion in 2023. Adjusted funds flow was $8.2 billion and free funds flow was $3.1 billion. Total capital investment for 2024 was $5.0 billion, primarily directed to sustaining production at the company’s Upstream assets, the construction of the major Upstream growth projects including West White Rose and refining reliability initiatives. Full-year net earnings for 2024 were $3.1 billion compared with $4.1 billion in 2023, primarily due to lower commodity prices, foreign exchange losses and higher depreciation, depletion, amortization and exploration expense.

Organizational updates

As part of Cenovus’s ongoing management succession plans, the company is announcing the following leadership changes effective March 1.

Andrew Dahlin, currently Executive Vice-President (EVP), Natural Gas & Technical Services, will assume the role of EVP & Chief Operating Officer. Andrew has more than 30 years of industry experience, including 13 years with Cenovus and its predecessor companies.

Eric Zimpfer, currently Senior Vice-President (SVP), U.S. Refining, will become Cenovus’s Head of Downstream, based in Dublin, Ohio and reporting directly to Jon McKenzie. Eric has more than 20 years of U.S. refining experience. He will play an integral role in continuing to improve the reliability and competitiveness of the Downstream business.

John Soini, currently SVP, Major & Capital Projects, will become EVP, Upstream – Thermal & Atlantic Offshore. John has more than 25 years of experience in the energy and power industries.

Susan Anderson, currently SVP, People Services, will become SVP, Legal, General Counsel & Corporate Secretary. Susan has more than 30 years of oil and gas industry experience, with 20 years at Husky Energy in various roles that included Vice-President, Legal.

Reserves

Cenovus’s proved and probable reserves are evaluated each year by independent qualified reserves evaluators. At the end of 2024, Cenovus’s total proved and total proved plus probable reserves were approximately 5.7 billion BOE and 8.5 billion BOE respectively, and total proved and total proved plus probable bitumen reserves were approximately 5.2 billion barrels and 7.7 billion barrels respectively. At year-end 2024, Cenovus had a proved reserves life index of approximately 19 years and a proved plus probable reserves life index of approximately 29 years.

More details about Cenovus’s reserves and other oil and gas information are available in the Advisory and the Management’s Discussion and Analysis (MD&A), Annual Information Form (AIF) and Annual Report on Form 40-F for the year ended December 31, 2024, available on SEDAR+ at sedarplus.ca, EDGAR at sec.gov and Cenovus’s website at cenovus.com under Investors.

Cenovus year-end disclosure documents

Today, Cenovus is filing its interim and audited Consolidated Financial Statements, MD&A and AIF with Canadian securities regulatory authorities. The company is also filing its Annual Report on Form 40-F for the year ended December 31, 2024 with the U.S. Securities and Exchange Commission. Copies of these documents will be available on SEDAR+ at sedarplus.ca, EDGAR at sec.gov and the company’s website at cenovus.com under Investors. They can also be requested free of charge by emailing investor.relations@cenovus.com.

Dividend declarations and share purchases

The Board of Directors has declared a quarterly base dividend of $0.180 per common share, payable on March 31, 2025 to shareholders of record as of March 14, 2025.

In addition, the Board has declared a quarterly dividend on each of the Cumulative Redeemable First Preferred Shares – Series 1, Series 2, Series 5 and Series 7 – payable on March 31, 2025 to shareholders of record as of March 14, 2025 as follows:

Preferred shares dividend summary

Share series	Rate (%)	Amount ($/share)
Series 1	2.577	0.16106
Series 2	5.211	0.32123
Series 5	4.591	0.28694
Series 7	3.935	0.24594

All dividends paid on Cenovus’s common and preferred shares will be designated as “eligible dividends” for Canadian federal income tax purposes. Declaration of dividends is at the sole discretion of the Board and will continue to be evaluated on a quarterly basis.

In the fourth quarter, the company returned $706 million to shareholders, composed of $108 million from its purchase of 4.6 million shares through its normal course issuer bid (NCIB), $348 million through common and preferred share dividends and $250 million through the redemption of Cenovus Series 3 preferred shares. In 2024, Cenovus returned $3.2 billion to shareholders, including $1.4 billion of share purchases through its NCIB, $1.6 billion in common and preferred share dividends, and $250 million through the redemption of the Series 3 preferred shares.

2025 planned maintenance

The following table provides details on planned maintenance activities at Cenovus assets in 2025 and anticipated production or throughput impacts.

Potential quarterly production/throughput impact (Mbbls/d or MBOE/d)

(MBOE/d or Mbbls/d)	Q1	Q2	Q3	Q4	Annualized impact
Upstream
Oil Sands	–	30 – 40	5 – 7	–	10 – 12
Offshore	–	–	4 – 6	–	1 – 2
Conventional	–	–	–	–	–
Downstream
Canadian Refining	–	–	–	–	–
U.S. Refining	7 – 10	35 – 45	2 – 4	6 – 10	13 – 17

Potential turnaround expenses

($ millions)	Q1	Q2	Q3	Q4	Annualized impact
Downstream
Canadian Refining	–	–	–	–	–
U.S. Refining	110 – 135	210 – 240	80 – 95	40 – 50	440 – 520

Conference call today

9 a.m. Mountain Time (11 a.m. Eastern Time)

Cenovus will host a conference call today, February 20, 2025, starting at 9 a.m. MT (11 a.m. ET).

To join the conference call, please dial 1-800-206-4400 (toll-free in North America) or 1-289-514-5005 to reach a live operator who will join you into the call. A live audio webcast will also be available and archived for approximately 30 days.

Advisory

Basis of Presentation

Cenovus reports financial results in Canadian dollars and presents production volumes on a net to Cenovus before royalties basis, unless otherwise stated. Cenovus prepares its financial statements in accordance with International Financial Reporting Standards (IFRS) Accounting Standards.

Barrels of Oil Equivalent

Natural gas volumes have been converted to barrels of oil equivalent (BOE) on the basis of six thousand cubic feet (Mcf) to one barrel (bbl). BOE may be misleading, particularly if used in isolation. A conversion ratio of one bbl to six Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil compared with natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is not an accurate reflection of value.

Reserves Life Index

Reserves life index is calculated based on reserves for the applicable reserves category divided by annual production.

Product types

Product type by operating segment	Three months ended December 31, 2024	Full year ended December 31, 2024
Oil Sands
Bitumen (Mbbls/d)	608.6	591.3
Heavy crude oil (Mbbls/d)	18.0	17.6
Conventional natural gas (MMcf/d)	11.8	11.1
Total Oil Sands segment production (MBOE/d)	628.5	610.7
Conventional
Light crude oil (Mbbls/d)	4.8	4.9
Natural gas liquids (Mbbls/d)	19.7	21.0
Conventional natural gas (MMcf/d)	560.5	563.8
Total Conventional segment production (MBOE/d)	117.8	119.9
Offshore
Light crude oil (Mbbls/d)	7.5	8.0
Natural gas liquids (Mbbls/d)	12.0	11.0
Conventional natural gas (MMcf/d)	301.0	285.3
Total Offshore segment production (MBOE/d)	69.7	66.6
Total Upstream production (MBOE/d)	816.0	797.2

Forward‐looking Information

This news release contains certain forward‐looking statements and forward‐looking information (collectively referred to as “forward‐looking information”) within the meaning of applicable securities legislation about Cenovus’s current expectations, estimates and projections about the future of the company, based on certain assumptions made in light of the company’s experiences and perceptions of historical trends. Although Cenovus believes that the expectations represented by such forward‐looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Forward‐looking information in this document is identified by words such as “anticipate”, “continue”, “deliver”, “focus”, “plan”, “progress”, “steward”, “target” and “will” or similar expressions and includes suggestions of future outcomes, including, but not limited to, statements about: Net Debt; returning Excess Free Funds Flow to shareholders; growth plans and projects; delivering long-term shareholder value; production guidance; the optimization project at Foster Creek; steam injection and timing of production at Narrows Lake; production and timing of well pads at Sunrise; installation and commissioning of the Sea Rose FPSO and return of production at White Rose; the installation and commissioning of, and timing of first oil from, the West White Rose project; 2025 planned maintenance; and dividend payments.

Developing forward‐looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally. The factors or assumptions on which the forward‐looking information in this news release are based include, but are not limited to: the allocation of free funds flow; commodity prices, inflation and supply chain constraints; Cenovus’s ability to produce on an unconstrained basis; Cenovus’s ability to access sufficient insurance coverage to pursue development plans; Cenovus’s ability to deliver safe and reliable operations and demonstrate strong governance; and the assumptions inherent in Cenovus’s 2025 corporate guidance available on c enovus.com.

The risk factors and uncertainties that could cause actual results to differ materially from the forward‐looking information in this news release include, but are not limited to: the accuracy of estimates regarding commodity production and operating expenses, inflation, taxes, royalties, capital costs and currency and interest rates; risks inherent in the operation of Cenovus’s business; and risks associated with climate change and Cenovus’s assumptions relating thereto and other risks identified under “Risk Management and Risk Factors” and “Advisory” in Cenovus’s Management’s Discussion and Analysis (MD&A) for the year ended December 31, 202 4.

Except as required by applicable securities laws, Cenovus disclaims any intention or obligation to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. Events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward‐looking information. For additional information regarding Cenovus’s material risk factors, the assumptions made, and risks and uncertainties which could cause actual results to differ from the anticipated results, refer to “Risk Management and Risk Factors” and “Advisory” in Cenovus’s MD&A for the periods ended December 31, 202 4 , and to the risk factors, assumptions and uncertainties described in other documents Cenovus files from time to time with securities regulatory authorities in Canada (available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and Cenovus’s website at cenovus.com).

Specified Financial Measures

This news release contains references to certain specified financial measures that do not have standardized meanings prescribed by IFRS Accounting Standards. Readers should not consider these measures in isolation or as a substitute for analysis of the company’s results as reported under IFRS Accounting Standards. These measures are defined differently by different companies and, therefore, might not be comparable to similar measures presented by other issuers. For information on the composition of these measures, as well as an explanation of how the company uses these measures, refer to the Specified Financial Measures Advisory located in Cenovus’s MD&A for the period ended December 31, 2024 (available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and on Cenovus’s website at cenovus.com ) which is incorporated by reference into this news release.

Upstream Operating Margin and Downstream Operating Margin

Upstream Operating Margin and Downstream Operating Margin, and the individual components thereof, are included in Note 1 to the interim Consolidated Financial Statements.

Total Operating Margin

Total Operating Margin is the total of Upstream Operating Margin plus Downstream Operating Margin.

	Upstream ⁽⁶⁾			Downstream ⁽⁶⁾			Total
($ millions)	Q4 2024	Q3 2024	Q4 2023	Q4 2024	Q3 2024	Q4 2023	Q4 2024	Q3 2024	Q4 2023
Revenues
Gross Sales	8,240	8,259	7,797	7,837	8,798	8,404	16,077	17,057	16,201
Less: Royalties	(914)	(929)	(902)	—	—	—	(914)	(929)	(902)
	7,326	7,330	6,895	7,837	8,798	8,404	15,163	16,128	15,299
Expenses
Purchased Product	1,000	1,088	663	7,364	8,207	7,888	8,364	9,295	8,551
Transportation and Blending	2,816	2,661	2,894	—	—	—	2,816	2,661	2,894
Operating	842	860	864	866	918	826	1,708	1,778	1,690
Realized (Gain) Loss on Risk Management	(2)	(10)	19	3	(4)	(6)	1	(14)	13
Operating Margin	2,670	2,731	2,455	(396)	(323)	(304)	2,274	2,408	2,151

⁶Found in the December 31, 2024, or the September 30, 2024, interim Consolidated Financial Statements. Revenues and purchased product for Q3 2024 Downstream operations were revised. See note 25 of our December 31, 2024, interim consolidated financial statements.

($ millions)	Upstream ⁽⁶⁾				Downstream ⁽⁶⁾			Total
Year ended December 31,	2024		2023		2024		2023	2024		2023
Revenues
Gross Sales	33,078		31,082		33,618		32,626	66,696		63,708
Less: Royalties	(3,449	)	(3,270	)	—		—	(3,449	)	(3,270	)
	29,629		27,812		33,618		32,626	63,247		60,438
Expenses
Purchased Product	3,674		3,152		30,252		28,273	33,926		31,425
Transportation and Blending	11,331		11,088		—		—	11,331		11,088
Operating	3,489		3,690		3,670		3,201	7,159		6,891
Realized (Gain) Loss on Risk Management	14		12		8		—	22		12
Operating Margin	11,121		9,870		(312	)	1,152	10,809		11,022

Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow

The following table provides a reconciliation of cash from (used in) operating activities found in Cenovus’s Consolidated Financial Statements to Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow. Adjusted Funds Flow per Share – Basic and Adjusted Funds Flow per Share – Diluted are calculated by dividing Adjusted Funds Flow by the respective basic or diluted weighted average number of common shares outstanding during the period and may be useful to evaluate a company’s ability to generate cash.

	Three Months Ended			Twelve Months Ended
($ millions)	December 31, 2024	September 30, 2024	December 31, 2023	December 31, 2024	December 31, 2023
Cash From (Used in) Operating Activities ⁽⁷⁾	2,029	2,474	2,946	9,235	7,388
(Add) Deduct:
Settlement of Decommissioning Liabilities	(64)	(74)	(65)	(234)	(222)
Net Change in Non-Cash Working Capital	492	588	949	1,305	(1,193)
Adjusted Funds Flow	1,601	1,960	2,062	8,164	8,803
Capital Investment	1,478	1,346	1,170	5,015	4,298
Free Funds Flow	123	614	892	3,149	4,505
Add (Deduct):
Base Dividends Paid on Common Shares	(330)	(329)	(261)	(1,255)	(990)
Purchase of Common Shares under Employee Benefit Plan	(43)	—	—	(43)	—
Dividends Paid on Preferred Shares	(18)	(9)	(9)	(45)	(36)
Settlement of Decommissioning Liabilities	(64)	(74)	(65)	(234)	(222)
Principal Repayment of Leases	(80)	(74)	(72)	(299)	(288)
Acquisitions, Net of Cash Acquired	(3)	(4)	(14)	(22)	(515)
Proceeds From Divestitures	(1)	22	—	46	12
Excess Free Funds Flow	(416)	146	471	1,297	2,466

⁷ Found in the December 31, 2024, or the September 30, 2024, interim Consolidated Financial Statements.

Market Capture

Market Capture contains a non-GAAP financial measure and is used in the company’s U.S. Refining segment to provide an indication of margin captured relative to what was available in the market based on widely-used benchmarks. We define Market Capture as Refining Margin divided by the weighted average 3-2-1 market benchmark crack, net of RINs, expressed as a percentage. The weighted average crack spread, net of RINs, is calculated on Cenovus’s operable capacity-weighted average of the Chicago and Group 3 3-2-1 benchmark market crack spreads, net of RINs.

($ millions)	Three months ended December 31, 2024	Three months ended September 30, 2024
Revenues⁽⁸⁾	6,574	7,218
Purchased Product⁽⁸⁾	6,296	6,854
Gross Margin	278	364
Total Processed Inputs (Mbbls/d)	588.4	568.0
Refining Margin ($/bbl)	5.14	6.97
Operable Capacity (Mbbls/d)	612.3	612.3
Operable Capacity by Regional Benchmark (percent)
Chicago 3-2-1 Crack Spread Weighting	81	81
Group 3 3-2-1 Crack Spread Weighting	19	19
Benchmark Prices and Exchange Rate
Chicago 3-2-1 Crack Spread (US$/bbl)	12.12	18.62
Group 3 3-2-1 Crack Spread (US$/bbl)	12.66	18.95
RINs (US$/bbl)	4.02	3.89
US$ per C$1 – Average	0.715	0.733
Weighted Average Crack Spread, Net of RINs ($/bbl)	11.47	20.18
Market Capture (percent)	45	35

⁸ Found in Note 1 of the December 31, 2024, or the September 30, 2024, interim Consolidated Financial Statements. For the three months ended September 30, 2024, amounts reflect certain revisions. See Note 25 of our December 31, 2024, interim consolidated financial statements.

Cenovus Energy Inc.

Cenovus Energy Inc. is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The company is focused on managing its assets in a safe, innovative and cost-efficient manner, integrating environmental, social and governance considerations into its business plans. Cenovus common shares and warrants are listed on the Toronto and New York stock exchanges, and the company’s preferred shares are listed on the Toronto Stock Exchange. For more information, visit cenovus.com.

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Cenovus contacts

Investors
Investor Relations general line
403-766-7711

Media
Media Relations general line
403-766-7751

The MIL Network –

February 21, 2025

MIL-OSI Economics: Hajime Takata: Economic activity, prices and monetary policy in Japan

Source: Bank for International Settlements

I. Economic Activity and Prices

I will begin by talking about developments in economic activity and prices. Overseas economies have grown moderately on the whole (Chart 1). Having faced concerns of an economic slowdown around summer 2024, the U.S. economy has since grown firmly, mainly led by private consumption. The projected growth in the U.S. economy for 2025 was revised upward to 2.7 percent in the January 2025 World Economic Outlook (WEO) Update released by the International Monetary Fund (IMF). Recent economic indicators suggest a solid U.S. economy, especially the possibility that the labor market, which triggered the concerns of an economic slowdown, has bottomed out. The Federal Reserve kept its policy interest rate unchanged at the January 2025 Federal Open Market Committee (FOMC) meeting, following three consecutive rate cuts at the previous meetings in the latter half of 2024 (Chart 2). The Summary of Economic Projections of the December 2024 FOMC meeting indicates future rate cuts. Some market participants, however, anticipate a pause in the reductions, partly because of firmness of the U.S. economy and speculation over the new administration. Based on the resilience of the economy, I believe it is more likely that the economy will accelerate again in the near future, making a “touch-and-go landing,” so to speak, rather than a soft landing, although attention continues to be warranted on uncertainties surrounding policy conduct under the new administration. What is more, the U.S. economy has continued to grow for four years at a pace close to 3 percent, a pace above its potential growth rate of around 2 percent, and a relatively high growth rate is also projected for 2025. In this situation, it is necessary to bear in mind the possibility that growth in employment and inflation in the country will accelerate further and to consider how such developments will affect global financial markets.

Japan’s economy has recovered moderately, although some weakness has been seen in part (Chart 3). With regard to the outlook, the economy is likely to keep growing at a pace above its potential growth rate, with overseas economies continuing to grow moderately and as a virtuous cycle from income to spending gradually intensifies against the background of factors such as accommodative financial conditions. Furthermore, I think that momentum for economic recovery could strengthen if overseas economies, particularly the U.S. economy, turn out better than expected.

MIL OSI Economics –

February 21, 2025
MIL-OSI USA: Rep. Ralph Norman Sends Letter to President Trump Medal of Honor to Major James Capers, Jr.

Source: United States House of Representatives – Congressman Ralph Norman (SC-05)

Washington, D.C. – Last week, Rep. Ralph Norman (R-SC) and Senator Lindsey Graham sent a letter to President Donald Trump urging him to award Major James Capers, Jr. the Medal of Honor.

Major Capers was responsible for incredible acts of valor when his Marine Corps special operations team was ambushed during a mission in Phu Loc, Vietnam in 1967 during the Vietnam War.

Rep. Norman has introduced legislation to award Major James Capers, Jr. the Medal of Honor during the 117 and 118 Congresses.

This letter was cosigned by six Senators and forty Members of Congress.

Background

The Medal of Honor is awarded to a military service member who: “distinguishes himself conspicuously by gallantry and intrepidity at the risk of his life above and beyond the call of duty.

1) While engaged in an action against an enemy of the United States;

2) While engaged in military operations involving conflict with an opposing foreign force; or

3) While serving with friendly foreign forces engaged in an armed conflict against an opposing armed force in which the United States is not a belligerent party.”

Major James Capers, Jr., born in Lee County, South Carolina, exemplified actions above and beyond the call of duty, more than meeting the requirements for a Medal of Honor when he led his team of nine out of an ambush where they were outnumbered 3:1 during the Vietnam War.

Thanks to the selfless sacrifice by Major Capers, all nine members of the team were brought to safety and survived the attack, though all members of the team, including Major Capers, were injured.

Major Capers, who now resides in North Carolina, served 22 years in the Marine Corps. He served in combat infantry during the Vietnam War, followed by his re-enlistment where he became the first African American to serve in the Marine Corps’ elite special operations unit, Force Recon.

During his career, Major Capers and his team conducted over 50 classified missions in Vietnam, amphibious assaults, covert missions to rescue POWs, and a recovery mission for a downed B-57 bomber, while enduring countless injuries including a broken leg.

He continually sacrificed himself before his team, earning three Purple Hearts, the Silver Star, two Bronze Stars and Combat V, Vietnam Cross of Gallantry, a Joint Service Commendation Medal, Combat Action Ribbon, three Good Conduct Ribbons, Battle Stars, Navy Commendation Medal, Navy Achievement Medal, CG Certificate of Merit, and multiple letters of Merit, Appreciation, and Commendation.

Upon returning to the U.S., he then became the face of the “Ask a Marine” recruiting campaign.

At 85 years old, Major James Capers, Jr. continues his public service by mentoring young Marines.

Statements

“Mr. James Capers, Jr. is a legend and should be honored as one,” said Rep. Norman in a statement on Wednesday. “He has lived, seen, and done more in this life than most people could dream of. Major Capers has handled every struggle with strength, humility, and grace. He deserves to be honored as a decorated Marine and for his exemplary character.”

“Major James Capers, Jr. has served his nation with great distinction and is an inspiration to all Marines,” said Senator Lindsey Graham. “I am proud to join my colleagues in honoring him for his heroic and selfless action.”

“Major James Capers, Jr. overcame humble beginnings to become an American hero,” said Senator Tim Scott. “His sacrifice and selflessness on behalf of his brothers in arms embody the American spirit and what it means to go above and beyond the call of duty. I’m proud to recommend to President Trump that this great South Carolinian be rightfully awarded with the Medal of Honor.”

“Major James Capers, Jr. is a hero and his battlefield actions during the Vietnam War are worthy of America’s highest military honor,” said Rep. Joe Wilson. “South Carolina is proud of its native son and appreciates his dedicated service to our nation.”

“Major Capers’ courage and sacrifice exemplify the very best of our nation’s ideals. His heroism deserves the highest recognition, and we strongly urge President Trump to award him the Medal of Honor,” said Rep. Nancy Mace.“Honoring Major Capers is not just about recognizing one Marine’s extraordinary service—it’s about reaffirming our nation’s commitment to those who have given everything in defense of our freedoms.”

“Major James Capers’ service and sacrifice exemplify the best of our armed forces. His bravery saved lives and demonstrated exceptional leadership,” said Rep. Sheri Biggs. “I proudly stand with my colleagues in urging President Trump to recognize his remarkable service with the Medal of Honor.”

MIL OSI USA News –

February 21, 2025
MIL-OSI USA: MATSUI STATEMENT ON JAPANESE AMERICAN DAY OF REMEMBRANCE

Source: United States House of Representatives – Congresswoman Doris Matsui (D-CA)

SACRAMENTO, CA – Today, Congresswoman Doris Matsui (CA-07), released the following statement on Japanese American Day of Remembrance, the 83^nd anniversary of the date in 1942 when President Franklin D. Roosevelt signed Executive Order 9066 – leading to the incarceration of Japanese Americans during World War II.

“Today marks 83 years since Executive Order 9066 displaced and incarcerated over 120,000 Japanese Americans, including my family,” said Congresswoman Matsui. “Everyday Americans were stripped of their freedom. Many lost everything – their homes, their businesses, and their livelihoods. Day of Remembrance stands as a stark reminder that we cannot afford to be complacent. Our freedoms are not simply self-sustaining. Our democracy is only as strong as our willingness to defend it and stand up to injustice.”

“We cannot and should not hide from our history,” Matsui continued. “That is the only way we can ensure that it does not repeat itself. Our history is lived experiences. It is the stories of real people, of families, of communities, and of the choices our country has made, both right and wrong. Right now, we are seeing a familiar playbook. The Trump Administration is trying to create a culture of fear and hysteria. Convince us we are hopelessly divided. Disregard due process to detain, expel, and keep vulnerable people down. That is why the Japanese American story must be told and retold. Our community has seen this before. We know all too well the consequences of institutionalized prejudice and discrimination – and Day of Remembrance reminds us that we must remain vigilant to prevent them.”

To ensure the continued teaching of Japanese American history, Congresswoman Matsui authored the Norman Y. Mineta Japanese American Confinement Education Act, which was signed by President Biden in January 2023. The bill reauthorized the Japanese American Confinement Site program within the National Park Service. This program has been one of the primary resources in the preservation and interpretation of the U.S. Confinement Sites where Japanese Americans were detained during World War II. Additionally, the legislation established a separate, new five year, $2 million per year competitive grant to create educational materials about the incarceration of Japanese Americans during World War II.

# # #

MIL OSI USA News –

February 21, 2025
MIL-OSI USA: Congresswoman Schrier Introduces Bipartisan Legislation to Improve Public Health Preparedness

Source: United States House of Representatives – Congresswoman Kim Schrier, M.D. (WA-08)

WASHINGTON, D.C. –Congresswoman Kim Schrier, M.D. (WA-08) introduced the bipartisan Diagnostics Testing Preparedness Plan Act, which would facilitate the innovation and development of diagnostics between the private and public sectors during Public Health Emergencies. Congresswoman Schrier was joined in introducing this legislation by Representatives Miller-Meeks (IA-01), Carson (IN-07), and Crenshaw (TX-02).

“Diagnostics are an essential part of public health preparedness and, as was exemplified in the COVID-19 Pandemic when we struggled to provide the testing required to slow the spread of disease while South Korea was doing thousands of drive-thru tests daily, diagnostic testing is especially crucial during a public health emergency,” said Congresswoman Schrier, M.D. “This commonsense, bipartisan bill will improve our clinical and diagnostic laboratory testing capacity, enhance public-private partnerships, and strengthen our overall public health preparedness against illnesses ranging from the seasonal flu to new, emerging threats.”

The Diagnostics Testing Preparedness Plan Act would require the Department of Health and Human Services (HHS) to develop a strategic plan that supports the rapid deployment of diagnostic tests during public health emergencies. Specifically, HHS would develop and periodically update a plan for rapid development, procurement, and distribution of diagnostic tests during public health emergencies, including laboratory and at-home tests. The plan must promote collaboration among government agencies and private sector stakeholders.

“From development to distribution, it is crucial to have a comprehensive plan for diagnostic and clinical lab testing capacities during a public health emergency,” said Dr. Miller-Meeks. “During the COVID-19 pandemic, we saw how critical diagnostic tests were for the public health response. As a physician, I am proud to sponsor this bipartisan bill to ensure the U.S. has a robust response to future public health emergencies.”

“Diagnostics play a role in every aspect of public health,” said Congressman Carson. “Whether it’s a bad flu season or the outbreak of a new infectious disease like the bird flu, our bill will ensure my district and cities across the country are better coordinated and better prepared to tackle the world’s most serious health problems. I’m honored to work with Roche Diagnostics in my home district and with my colleagues across the aisle on this important bill.”

MIL OSI USA News –

February 21, 2025
MIL-OSI Asia-Pac: Inflation at 2% in January

Source: Hong Kong Information Services

Overall consumer prices rose 2% year-on-year in January, a larger rate of increase than the 1.4% seen in December, the Census & Statistics Department announced today.

Netting out the effects of the Government’s one-off relief measures, underlying inflation was 1.6%, also larger than that seen in December.

Compared with a year before, price increases were recorded in January in the following categories: alcoholic drinks and tobacco; electricity, gas and water; transport; miscellaneous services; meals out and takeaway food; housing; miscellaneous goods; and basic food.

Meanwhile, year-on-year decreases were logged in clothing and footwear, as well as durable goods.

The Government commented that underlying consumer price inflation was modest in January, during which food prices registered mild year-on-year increases, and prices of energy-related items picked up moderately. At the same time, price pressures on other major components stayed broadly in check.

As last year’s and this year’s Lunar New Year fell in different months, the Government said it would assess the underlying inflation situation at a later date, using the combined figures for January and February 2025.

The Government also said it expects overall inflation to remain moderate in the near term.

While domestic costs may be subject to some upward pressures, external price pressures should remain contained, it remarked, adding that uncertainties stemming from geopolitical tensions and trade conflicts warrant attention.

MIL OSI Asia Pacific News –

February 21, 2025
MIL-OSI Asia-Pac: Dental plan for teens set

Source: Hong Kong Information Services

The Department of Health announced today that the Primary Dental Co-care Pilot Scheme for Adolescents (PDCC) will be implemented on March 20, providing government subsidies with co-payment arrangements to incentivise adolescents to seek check-ups at private dental clinics.

The PDCC serves as an interface with the School Dental Care Service by providing partial subsidies for dental check-up services for adolescents to foster a long-term partnership with registered dentists in the private sector and to build a life-long habit of regular dental check-ups.

People aged between 13 and 17, holding a valid Hong Kong Identity Card and have enrolled in the eHealth system are eligible to join the scheme. They can receive subsidised services once a year.

While the Government will offer a $200 subsidy each time, participants have to pay a co-payment fee as determined by the dentists they select. The co-payment for the subsidised services each time recommended by the Government is $200.

The subsidised services include a dental check-up, oral health risk assessment, dental scaling, personalised self-care advice on oral care, fluoride application as risk-based follow-up, and a check-up report.

Around 200 registered dentists have applied for enrolment in the PDCC to provide services in more than 220 healthcare service locations, where more than half of the co-payment was set at $200 or below. The department is vetting the applications.

Adolescents and their parents can refer to the approved registered dentists list that will be uploaded to the scheme webpage on March 6, and contact the relevant clinic to make an appointment for receiving the subsidised services on or after March 20.

Other than the co-payment fee, the dentists list will show the fees for X-ray examinations, tooth fillings and tooth extractions as charged by the dentists under the pilot scheme.

MIL OSI Asia Pacific News –

February 21, 2025
MIL-OSI Global: Why the US return to tariffs and protectionism ‘reeks of hypocrisy’ – podcast

Source: The Conversation – UK – By Gemma Ware, Host, The Conversation Weekly Podcast, The Conversation

Amani A/Shutterstock

When Donald Trump imposed sweeping tariffs during his first term as US president, it sparked a trade war with China. As the Trump administration ratchets up its threat to tax imports from its allies and economic rivals alike, the world is bracing for another wave of costly economic disruption.

This protectionist shift is all the more remarkable given how the US championed trade liberalisation for decades.

So what does it actually take for a country to use protectionism to grow its economy? Some developing countries have successfully used tariffs to do so, while others have struggled. In this episode of The Conversation Weekly podcast, we talk to Jostein Hauge, a development economist at the University of Cambridge, about who wins and who loses from tariffs and protectionism.

The main argument against taxing imports through tariffs is that the higher costs of imported goods will be passed onto consumers. The main argument in favour is that tariffs can help to protect a country’s domestic economy, explains Hauge:

By using tariffs, you can, if they are used effectively, and if they’re successful, help domestic firms become better at producing what they’re producing and eventually become competitive in the world economy. Sometimes that’s successful, other times that’s not successful. It can also be an effective way of raising taxes, especially for countries that don’t have a lot of tax revenue, especially developing countries.

A number of developing countries successfully used tariffs and other forms of protectionism to grow their economies in the 1950s and 1960s, as Hauge explains:

South Korea gradually went from being a low-income, low-tech economy towards becoming extremely important players in global industries like electronics, automotive and steel.

The US has also used tariffs throughout its history, with varying degrees of success. It was the most protectionist country in the world in the 1800s, using tariffs to grow its economy. But the Smoot-Hawley Act in 1930, which introduced a range of taxes on imports to the US, actually contributed to worsening the Great Depression.

From the 1970s, however, the US aggressively pushed for trade liberalisation and backed the creation of the World Trade Organization in the 1990s. That’s why Hauge says the current return to US protectionism, which began during the first Trump administration and continued under Biden, “reeks of hypocrisy”.

When rich countries were ahead in the 1970s, 1980s and 1990s, it made sense for them to preach the virtues of free trade to the rest of the world. That is also why we’re seeing this protectionist turn right now, especially in the United States, but also to some degree in Europe, because now certain countries are starting to become competitive once again. In particular, China is now challenging the economic power of the United States, especially within a lot of manufactured goods, so the United States is now turning away from this doctrine of free trade, saying actually protectionism is useful.

Listen to the conversation with Jostein Hauge on The Conversation Weekly podcast, which also includes an introduction from Tracy Walsh, economy and business editor at The Conversation US.

This episode of The Conversation Weekly was written and produced by Mend Mariwany with assistance from Katie Flood and Gemma Ware, Sound design was by Michelle Macklem, and theme music by Neeta Sarl.

Clips in this episode from CN N, Bloomberg Television, BBC News, CBS News and NBC News.

Listen to The Conversation Weekly via any of the apps listed above, download it directly via our RSS feed or find out how else to listen here.

Jostein Hauge does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Why the US return to tariffs and protectionism ‘reeks of hypocrisy’ – podcast – https://theconversation.com/why-the-us-return-to-tariffs-and-protectionism-reeks-of-hypocrisy-podcast-250329

MIL OSI – Global Reports –

February 21, 2025

MIL-OSI Economics: Open Market Operation (OMO) – Purchase of Government of India Securities held on February 20, 2025: Cut-Offs

Source: Reserve Bank of India

Security	7.17% GS 2030	7.18% GS 2033	7.10% GS 2034	6.79% GS 2034	7.41% GS 2036	7.18% GS 2037
Total amount notified	Aggregate amount of ₹40,000 crore (no security-wise notified amount)
Total amount (face value) accepted by RBI (₹ in crore)	9,918	4,585	4,340	4,091	10,005	7,061
Cut off yield (%)	6.7386	6.8103	6.7640	6.6859	6.8932	6.9040
Cut off price (₹)	101.84	102.35	102.25	100.72	104.12	102.27
Detailed results will be issued shortly.

Ajit Prasad
Deputy General Manager
(Communications)

Press Release: 2024-2025/2204

MIL OSI Economics –

February 20, 2025

MIL-OSI: Bilibili Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

SHANGHAI, China, Feb. 20, 2025 (GLOBE NEWSWIRE) — Bilibili Inc. (“Bilibili” or the “Company”) (NASDAQ: BILI and HKEX: 9626), an iconic brand and a leading video community for young generations in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.

Fourth Quarter and Fiscal Year 2024 Highlights:

Total net revenues were RMB7.73 billion (US$1,059.6 million) in the fourth quarter and RMB26.83 billion (US$3,675.9 million) in 2024, representing increases of 22% and 19% year over year, respectively.
- Advertising revenues were RMB2.39 billion (US$327.2 million) in the fourth quarter and RMB8.19 billion (US$1,121.9 million) in 2024, representing increases of 24% and 28% year over year, respectively.
- Mobile games revenues were RMB1.80 billion (US$246.3 million) in the fourth quarter and RMB5.61 billion (US$768.6 million) in 2024, representing increases of 79% and 40% year over year, respectively.
Gross profit was RMB2.79 billion (US$382.0 million) in the fourth quarter and RMB8.77 billion (US$1,202.0 million) in 2024, representing increases of 68% and 61% year over year, respectively. Gross profit margin reached 36.1% in the fourth quarter and 32.7% in 2024, improving from 26.1% in the fourth quarter of 2023 and 24.2% in the year of 2023, respectively.
Net profit was RMB88.9 million (US$12.2 million) for the fourth quarter, compared with net loss of RMB1.30 billion in the same period last year. For 2024, net loss was RMB1.36 billion (US$186.8 million), narrowing by 72% year over year.
Adjusted net profit¹ was RMB452.0 million (US$61.9 million) for the fourth quarter, compared with an adjusted net loss of RMB555.8 million in the same period last year. For 2024, adjusted net loss was RMB39.0 million (US$5.3 million), narrowing by 99% year over year.
Operating cash flow was RMB1.40 billion (US$191.9 million) for the fourth quarter and RMB6.01 billion (US$824.0 million) for 2024, compared with RMB640.4 million in the fourth quarter of 2023 and RMB266.6 million in the year of 2023, respectively.
Average daily active users (DAUs) were 103.0 million in the fourth quarter, compared with 100.1 million in the same period last year.

“We closed 2024 on a strong note, achieving our first quarter of GAAP profitability—a milestone reflecting the value of our community and our relentless effort to enhance our commercialization efficiency,” said Mr. Rui Chen, chairman and chief executive officer of Bilibili. “In the fourth quarter, our DAUs and MAUs reached 103 million and 340 million, respectively, with users spending an average of 99 minutes daily on our platform. Throughout the year, we advanced our commercialization strategy and improved our products to meet users’ evolving content and consumption needs. For 2024, our total net revenues grew 19% year-over-year to RMB26.83 billion, driven by strong advertising and mobile games businesses, which saw revenue increases of 28% and 40%, both on year-over-year basis, respectively. We are also very encouraged by the emergence of new open-source AI models, making AI solutions accessible and cost-effective. Leveraging our high-quality and exclusive data assets, we expect to benefit even more from this remarkable revolution, unleashing greater value from our unique community.”

Mr. Sam Fan, chief financial officer of Bilibili, said, “Strong growth in our high-margin advertising and mobile games businesses drove total net revenues up by 22% year over year in the fourth quarter. Gross profit surged by 68% year-over-year in the fourth quarter, leading to a 10 percentage-point increase in our gross profit margin to 36.1%. Meanwhile, we generated RMB6.01 billion in operating cash flow for the full year 2024. We also enhanced shareholder returns by repurchasing outstanding ADSs and convertible senior notes totaling US$864.8 million during the year. Looking ahead, we are determined to further unlock the value embedded within our community with more efficient commercialization products and services to drive sustainable profitability over the long run.”

Fourth Quarter 2024 Financial Results

Total net revenues. Total net revenues were RMB7.73 billion (US$1,059.6 million), representing an increase of 22% from the same period of 2023.

Advertising. Revenues from advertising were RMB2.39 billion (US$327.2 million), representing an increase of 24% from the same period of 2023, mainly attributable to the Company’s improved advertising product offerings and enhanced advertising efficiency.

Mobile games. Revenues from mobile games were RMB1.80 billion (US$246.3 million), representing an increase of 79% from the same period of 2023, mainly attributable to the strong performance of the Company’s exclusively licensed game, San Guo: Mou Ding Tian Xia launched in 2024.

Value-added services (VAS). Revenues from VAS were RMB3.08 billion (US$422.4 million), representing an increase of 8% from the same period of 2023, led by increases in revenues from other value-added services and premium membership.

IP derivatives and others. Revenues from IP derivatives and others were RMB464.9 million (US$63.7 million), representing a decrease of 16% from the same period of 2023.

Cost of revenues. Cost of revenues was RMB4.95 billion (US$677.6 million), representing an increase of 5% from the same period of 2023. The increase was mainly due to higher revenue-sharing costs and was partially offset by lower content costs. Revenue-sharing costs, a key component of cost of revenues, were RMB3.17 billion (US$434.2 million), representing an increase of 12% from the same period of 2023, mainly due to the increase of mobile games-related revenue-sharing costs.

Gross profit. Gross profit was RMB2.79 billion (US$382.0 million), representing an increase of 68% from the same period of 2023, mainly attributable to the growth in total net revenues and the decrease in costs related to platform operations, as the Company enhanced its monetization efficiency.

Total operating expenses. Total operating expenses were RMB2.66 billion (US$364.7 million), representing a decrease of 10% from the same period of 2023.

Sales and marketing expenses. Sales and marketing expenses were RMB1.24 billion (US$169.4 million), representing a 10% increase from the same period of 2023. The increase was primarily attributable to increased marketing expenses for the Company’s exclusively licensed games.

General and administrative expenses. General and administrative expenses were RMB505.9 million (US$69.3 million), remaining flat compared with the same period of 2023.

Research and development expenses. Research and development expenses were RMB919.3 million (US$125.9 million), representing a 31% decrease from the same period of 2023. The decrease was mainly attributable to the one-off termination expenses of certain game projects that occurred in the fourth quarter of 2023.

Profit/(loss) from operations. Profit from operations was RMB126.4 million (US$17.3 million), compared with a loss of RMB1.30 billion from the same period of 2023.

Adjusted profit/(loss) from operations¹. Adjusted profit from operations was RMB463.1 million (US$63.4 million), compared with an adjusted loss from operations of RMB635.1 million from the same period of 2023.

Total other (expenses)/income, net. Total other expenses were RMB61.0 million (US$8.4 million), compared with total other income of RMB13.1 million in the same period of 2023.

Income tax benefit/(expense). Income tax benefit was RMB23.5 million (US$3.2 million), compared with income tax expense of RMB5.1 million in the same period of 2023.

Net profit/(loss). Net profit was RMB88.9 million (US$12.2 million), compared with net loss of RMB1.30 billion from the same period of 2023.

Adjusted net profit/(loss)¹. Adjusted net profit was RMB452.0 million (US$61.9 million), compared with an adjusted net loss of RMB555.8 million in the same period of 2023.

Basic and diluted EPS and adjusted basic and diluted EPS¹. Basic and diluted net profit per share were RMB0.22 (US$0.03) and RMB0.21 (US$0.03) each, compared with basic and diluted net loss per share of RMB3.13 each in the same period of 2023. Adjusted basic and diluted net profit per share were RMB1.08 (US$0.15) and RMB1.07 (US$0.15) each, compared with an adjusted basic and diluted net loss per share of RMB1.34 each in the same period of 2023.

Net cash provided by operating activities. Net cash provided by operating activities was RMB1.40 billion (US$191.9 million), compared with net cash provided by operating activities of RMB640.4 million in the same period of 2023.

Fiscal Year 2024 Financial Results

Total net revenues. Total net revenues were RMB26.83 billion (US$3.68 billion), representing an increase of 19% from 2023.

Advertising. Revenues from advertising were RMB8.19 billion (US$1,121.9 million), representing an increase of 28% from 2023, mainly attributable to the Company’s improved advertising product offerings and enhanced advertising efficiency.

Mobile games. Revenues from mobile games were RMB5.61 billion (US$768.6 million), representing an increase of 40% from 2023. The increase was mainly attributable to the strong performance of the Company’s exclusively licensed game, San Guo: Mou Ding Tian Xia.

Value-added services (VAS). Revenues from VAS were RMB11.00 billion (US$1.51 billion), representing an increase of 11% from 2023, led by an increase in revenues from live broadcasting and other value-added services.

IP derivatives and others. Revenues from IP derivatives and others were RMB2.03 billion (US$278.5 million), representing a decrease of 7% from 2023.

Cost of revenues. Cost of revenues was RMB18.06 billion (US$2.47 billion), representing an increase of 6% from 2023. The increase was mainly due to increased revenue sharing costs and server and bandwidth costs. Revenue-sharing costs, a key component of cost of revenues, were RMB10.80 billion (US$1.48 billion), representing an increase of 14% from 2023.

Gross profit. Gross profit was RMB8.77 billion (US$1,202.0 million), representing an increase of 61% from 2023, primarily as a result of the growth in total net revenues and the decrease in costs related to platform operations, as the Company enhanced its monetization efficiency.

Total operating expenses. Total operating expenses were RMB10.12 billion (US$1.39 billion), representing a decrease of 4% from 2023.

Sales and marketing expenses. Sales and marketing expenses were RMB4.40 billion (US$603.0 million), representing a 12% increase from 2023. The increase was primarily attributable to increased marketing expenses for the Company’s exclusively licensed games.

General and administrative expenses. General and administrative expenses were RMB2.03 billion (US$278.3 million), representing a 4% decrease from 2023. The decrease was primarily attributable to a decrease in general and administrative personnel headcount in 2024.

Research and development expenses. Research and development expenses were RMB3.69 billion (US$504.9 million), representing an 18% decrease from 2023. The decrease was mainly attributable to a decrease in research and development personnel headcount in 2024 and the one-off termination expenses of certain game projects that occurred in the fourth quarter of 2023.

Loss from operations. Loss from operations was RMB1.34 billion (US$184.1 million), narrowing by 73% from 2023.

Adjusted loss from operations¹. Adjusted loss from operations was RMB60.8 million (US$8.3 million), narrowing by 98% from 2023.

Total other (expenses)/income, net. Total other expenses were RMB56.2 million (US$7.7 million), compared with total other income of RMB331.2 million in 2023. The change was primarily attributable to losses of RMB38.6 million from the repurchase of convertible senior notes in 2024, compared with gains of RMB292.2 million in 2023.

Income tax benefit/(expense). Income tax benefit was RMB36.5 million (US$5.0 million), compared with income tax expense of RMB78.7 million in 2023.

Net loss. Net loss was RMB1.36 billion (US$186.8 million), narrowing by 72% from 2023.

Adjusted net loss¹. Adjusted net loss was RMB39.0 million (US$5.3 million), narrowing by 99% from 2023.

Basic and diluted EPS and adjusted basic and diluted EPS¹. Basic and diluted net loss per share were RMB3.23 (US$0.44) each, compared with RMB11.67 each in 2023. Adjusted basic and diluted net loss per share were RMB0.05 (US$0.01) each, compared with RMB8.29 each in 2023.

Net cash provided by operating activities. Net cash provided by operating activities was RMB6.01 billion (US$824.0 million), compared with net cash provided by operating activities of RMB266.6 million for 2023.

Cash and cash equivalents, time deposits and short-term investments. As of December 31, 2024, the Company had cash and cash equivalents, time deposits and short-term investments of RMB16.54 billion (US$2.27 billion).

Share Repurchase Program

On November 14, 2024, the Company announced that its board of directors had approved a share repurchase program of up to US$200 million of its publicly traded securities over a 24-month period. As of December 31, 2024, the Company had repurchased a total of approximately 0.84 million ADSs under this authorized program for a total cost of US$16.4 million.

Repurchase of Convertible Senior Notes

In November 2024, the Company completed the repurchase right offer for its 0.50% Convertible Senior Notes due 2026 (the “December 2026 Notes”). An aggregate principal amount of US$419.1 million (RMB3.01 billion) of the December 2026 Notes was validly surrendered and repurchased with an aggregate cash consideration of US$419.1 million (RMB3.01 billion). After completion of this transaction, the aggregate outstanding principal amount of the April 2026 Notes, the 2027 Notes and the December 2026 Notes was US$13.4 million (RMB96.4 million).

_¹ _{Adjusted profit/(loss) from operations, adjusted net profit/(loss), and adjusted basic and diluted EPS are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”}

Conference Call

The Company’s management will host an earnings conference call at 7:00 AM U.S. Eastern Time on February 20, 2025 (8:00 PM Beijing/Hong Kong Time on February 20, 2025). Details for the conference call are as follows:

All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a personal PIN, which will be used to join the conference call.

Additionally, a live webcast of the conference call will be available on the Company’s investor relations website at http://ir.bilibili.com, and a replay of the webcast will be available following the session.

About Bilibili Inc.

Bilibili is an iconic brand and a leading video community with a mission to enrich the everyday lives of young generations in China. Bilibili offers a wide array of video-based content with All the Videos You Like as its value proposition. Bilibili builds its community around aspiring users, high-quality content, talented content creators and the strong emotional bonds among them. Bilibili pioneered the “bullet chatting” feature, a live comment function that has transformed our users’ viewing experience by displaying the thoughts and feelings of audience members viewing the same video. The Company has now become the welcoming home of diverse interests among young generations in China and the frontier for promoting Chinese culture across the world.

For more information, please visit: http://ir.bilibili.com.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures, such as adjusted profit/(loss) from operations, adjusted net profit/(loss), adjusted net profit/(loss) per share and per ADS, basic and diluted and adjusted net profit/(loss) attributable to the Bilibili Inc.’s shareholders in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, amortization expense related to intangible assets acquired through business acquisitions, income tax related to intangible assets acquired through business acquisitions, gain/loss on fair value change in investments in publicly traded companies, gain/loss on repurchase of convertible senior notes, and termination expenses of certain game projects. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP and therefore may not be comparable to similar measures presented by other companies. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2993 to US$1.00, the exchange rate on December 31, 2024 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred to could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue,” or other similar expressions. Among other things, outlook and quotations from management in this announcement, as well as Bilibili’s strategic and operational plans, contain forward-looking statements. Bilibili may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Bilibili’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: results of operations, financial condition, and stock price; Bilibili’s strategies; Bilibili’s future business development, financial condition and results of operations; Bilibili’s ability to retain and increase the number of users, members and advertising customers, provide quality content, products and services, and expand its product and service offerings; competition in the online entertainment industry; Bilibili’s ability to maintain its culture and brand image within its addressable user communities; Bilibili’s ability to manage its costs and expenses; PRC governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission and the Hong Kong Stock Exchange. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Bilibili Inc.
Juliet Yang
Tel: +86-21-2509-9255 Ext. 8523
E-mail: ir@bilibili.com

Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
E-mail: bilibili@tpg-ir.com

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: bilibili@tpg-ir.com

BILIBILI INC. Unaudited Condensed Consolidated Statements of Operations (All amounts in thousands, except for share and per share data)

	For the Three Months Ended						For the Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2023		2024		2024		2023		2024
	RMB		RMB		RMB		RMB		RMB

Net revenues:
Value-added services (VAS)	2,857,079		2,821,269		3,083,071		9,910,080		10,999,137
Advertising	1,929,164		2,094,427		2,388,673		6,412,040		8,189,175
Mobile games	1,006,858		1,822,609		1,797,537		4,021,137		5,610,323
IP derivatives and others	555,995		567,315		464,880		2,184,730		2,032,890
Total net revenues	6,349,096		7,305,620		7,734,161		22,527,987		26,831,525
Cost of revenues	(4,689,114	)	(4,758,434	)	(4,945,945	)	(17,086,122	)	(18,057,562	)
Gross profit	1,659,982		2,547,186		2,788,216		5,441,865		8,773,963

Operating expenses:
Sales and marketing expenses	(1,125,464	)	(1,202,407	)	(1,236,593	)	(3,916,150	)	(4,401,655	)
General and administrative expenses	(511,906	)	(505,386	)	(505,861	)	(2,122,432	)	(2,031,063	)
Research and development expenses	(1,327,282	)	(906,072	)	(919,321	)	(4,467,470	)	(3,685,214	)
Total operating expenses	(2,964,652	)	(2,613,865	)	(2,661,775	)	(10,506,052	)	(10,117,932	)
(Loss)/profit from operations	(1,304,670	)	(66,679	)	126,441		(5,064,187	)	(1,343,969	)

Other income/(expenses):
Investment loss, net (including impairments)	(199,004	)	(70,957	)	(283,191	)	(435,644	)	(470,081	)
Interest income	126,450		91,279		110,150		542,472		434,980
Interest expense	(29,181	)	(17,824	)	(19,986	)	(164,927	)	(89,193	)
Exchange gains/(losses)	4,848		(5,909	)	10,529		(35,575	)	(68,715	)
Debt extinguishment (loss)/gain	–		–		(17,649	)	292,213		(38,629	)
Others, net	110,007		(18,134	)	139,107		132,640		175,412
Total other income/(expenses), net	13,120		(21,545	)	(61,040	)	331,179		(56,226	)
(Loss)/profit before income tax	(1,291,550	)	(88,224	)	65,401		(4,733,008	)	(1,400,195	)
Income tax (expense)/benefit	(5,140	)	8,419		23,533		(78,705	)	36,544
Net (loss)/profit	(1,296,690	)	(79,805	)	88,934		(4,811,713	)	(1,363,651	)
Net loss/(profit) attributable to noncontrolling interests	206		290		1,026		(10,608	)	16,851
Net (loss)/profit attributable to the Bilibili Inc.’s shareholders	(1,296,484	)	(79,515	)	89,960		(4,822,321	)	(1,346,800	)
Net (loss)/profit per share, basic	(3.13	)	(0.19	)	0.22		(11.67	)	(3.23	)
Net (loss)/profit per ADS, basic	(3.13	)	(0.19	)	0.22		(11.67	)	(3.23	)
Net (loss)/profit per share, diluted	(3.13	)	(0.19	)	0.21		(11.67	)	(3.23	)
Net (loss)/profit per ADS, diluted	(3.13	)	(0.19	)	0.21		(11.67	)	(3.23	)
Weighted average number of ordinary shares, basic	414,793,013		417,849,446		417,829,038		413,210,271		416,470,256
Weighted average number of ADS, basic	414,793,013		417,849,446		417,829,038		413,210,271		416,470,256
Weighted average number of ordinary shares, diluted	414,793,013		417,849,446		424,208,294		413,210,271		416,470,256
Weighted average number of ADS, diluted	414,793,013		417,849,446		424,208,294		413,210,271		416,470,256

The accompanying notes are an integral part of this press release.

BILIBILI INC. Notes to Unaudited Condensed Financial Information (All amounts in thousands, except for share and per share data)

	For the Three Months Ended			For the Year Ended
	December 31,	September 30,	December 31,		December 31,	December 31,
	2023	2024	2024		2023	2024
	RMB	RMB	RMB		RMB	RMB


Share-based compensation expenses included in:
Cost of revenues	15,014	26,781	25,350		63,724	84,178
Sales and marketing expenses	13,960	16,015	18,524		56,649	60,460
General and administrative expenses	150,226	133,825	137,513		596,950	568,194
Research and development expenses	87,859	120,490	113,649		415,321	403,380
Total	267,059	297,111	295,036		1,132,644	1,116,212

BILIBILI INC. Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands, except for share and per share data)
	December 31,	December 31,
	2023	2024
	RMB	RMB

Assets
Current assets:
Cash and cash equivalents	7,191,821	10,249,382
Time deposits	5,194,891	3,588,475
Restricted cash	50,000	50,000
Accounts receivable, net	1,573,900	1,226,875
Prepayments and other current assets	2,063,362	1,934,788
Short-term investments	2,653,065	2,706,535
Total current assets	18,727,039	19,756,055
Non-current assets:
Property and equipment, net	714,734	589,227
Production cost, net	2,066,066	1,851,207
Intangible assets, net	3,627,533	3,201,012
Goodwill	2,725,130	2,725,130
Long-term investments, net	4,366,632	3,911,592
Other long-term assets	931,933	664,277
Total non-current assets	14,432,028	12,942,445
Total assets	33,159,067	32,698,500
Liabilities
Current liabilities:
Accounts payable	4,333,730	4,801,416
Salary and welfare payables	1,219,355	1,599,482
Taxes payable	345,250	428,932
Short-term loan and current portion of long-term debt	7,455,753	1,571,836
Deferred revenue	2,954,088	3,802,307
Accrued liabilities and other payables	1,795,519	2,558,830
Total current liabilities	18,103,695	14,762,803
Non-current liabilities:
Long-term debt	646	3,264,153
Other long-term liabilities	650,459	567,631
Total non-current liabilities	651,105	3,831,784
Total liabilities	18,754,800	18,594,587

Total Bilibili Inc.’s shareholders’ equity	14,391,900	14,108,397
Noncontrolling interests	12,367	(4,484	)
Total shareholders’ equity	14,404,267	14,103,913

Total liabilities and shareholders’ equity	33,159,067	32,698,500

BILIBILI INC. Unaudited Selected Condensed Consolidated Cash Flows Data (All amounts in thousands, except for share and per share data)

	For the Three Months Ended			For the Year Ended
	December 31,	September 30,	December 31,	December 31,	December 31,
	2023	2024	2024	2023	2024
	RMB	RMB	RMB	RMB	RMB

Net cash provided by operating activities	640,396	2,225,629	1,400,988	266,622	6,014,854

BILIBILI INC. Unaudited Reconciliations of GAAP and Non-GAAP Results (All amounts in thousands, except for share and per share data)

	For the Three Months Ended									For the Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2023			2024			2024			2023			2024
	RMB			RMB			RMB			RMB			RMB

(Loss)/Profit from operations		(1,304,670	)		(66,679	)		126,441			(5,064,187	)		(1,343,969	)
Add:
Share-based compensation expenses		267,059			297,111			295,036			1,132,644			1,116,212
Amortization expense related to intangible assets acquired through business acquisitions		47,734			41,776			41,581			191,770			166,909
Termination expenses of certain game projects		354,811			–			–			354,811			–
Adjusted (loss)/profit from operations		(635,066	)		272,208			463,058			(3,384,962	)		(60,848	)

Net (loss)/profit		(1,296,690	)		(79,805	)		88,934			(4,811,713	)		(1,363,651	)
Add:
Share-based compensation expenses		267,059			297,111			295,036			1,132,644			1,116,212
Amortization expense related to intangible assets acquired through business acquisitions		47,734			41,776			41,581			191,770			166,909
Income tax related to intangible assets acquired through business acquisitions		(5,563	)		(5,406	)		(5,358	)		(22,376	)		(21,578	)
Loss/(Gain) on fair value change in investments in publicly traded companies		76,839			(17,778	)		14,177			32,964			24,524
Loss/(Gain) on repurchase of convertible senior notes		–			–			17,649			(292,213	)		38,629
Termination expenses of certain game projects		354,811			–			–			354,811			–
Adjusted net (loss)/profit		(555,810	)		235,898			452,019			(3,414,113	)		(38,955	)
Net loss/(profit) attributable to noncontrolling interests		206			290			1,026			(10,608	)		16,851
Adjusted net (loss)/profit attributable to the Bilibili Inc.’s shareholders		(555,604	)		236,188			453,045			(3,424,721	)		(22,104	)
Adjusted net (loss)/profit per share, basic		(1.34	)		0.57			1.08			(8.29	)		(0.05	)
Adjusted net (loss)/profit per ADS, basic		(1.34	)		0.57			1.08			(8.29	)		(0.05	)
Adjusted net (loss)/profit per share, diluted		(1.34	)		0.57			1.07			(8.29	)		(0.05	)
Adjusted net (loss)/profit per ADS, diluted		(1.34	)		0.57			1.07			(8.29	)		(0.05	)
Weighted average number of ordinary shares, basic		414,793,013			417,849,446			417,829,038			413,210,271			416,470,256
Weighted average number of ADS, basic		414,793,013			417,849,446			417,829,038			413,210,271			416,470,256
Weighted average number of ordinary shares, diluted		414,793,013			417,849,446			424,208,294			413,210,271			416,470,256
Weighted average number of ADS, diluted		414,793,013			417,849,446			424,208,294			413,210,271			416,470,256

The MIL Network –

February 20, 2025

MIL-OSI: JD.com to Report Fourth Quarter and Full Year 2024 Financial Results on March 6, 2025

Source: GlobeNewswire (MIL-OSI)

BEIJING, Feb. 20, 2025 (GLOBE NEWSWIRE) — JD.com, Inc. (NASDAQ: JD and HKEX: 9618 (HKD counter) and 89618 (RMB counter)), a leading supply chain-based technology and service provider, today announced that it plans to release its unaudited fourth quarter and full year 2024 financial results on Thursday, March 6, 2025, before the U.S. market opens.

JD.com’s management will hold a conference call at 7:00 am, Eastern Time on March 6, 2025, (8:00 pm, Beijing/Hong Kong Time on March 6, 2025) to discuss the fourth quarter and full year 2024 financial results.

Please register in advance of the conference using the link provided below and dial in 15 minutes prior to the call, using participant dial-in numbers, the Passcode and unique access PIN which would be provided upon registering. You will be automatically linked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions.

PRE-REGISTER LINK: https://s1.c-conf.com/diamondpass/10044957-x2nu4z.html

CONFERENCE ID: 10044957

A telephone replay will be available for one week until March 13, 2025. The dial-in details are as follows:

US: +1-855-883-1031

International:
Hong Kong:
Mainland China:
Passcode: +61-7-3107-6325
800-930-639
400-120-9216
10044957

Additionally, a live and archived webcast of the conference call will also be available on JD.com’s investor relations website at http://ir.jd.com.

About JD.com, Inc.

JD.com is a leading supply chain-based technology and service provider. The Company’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. The Company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries.

For investor and media inquiries, please contact:

Investor Relations
Sean Zhang
+86 (10) 8912-6804
IR@JD.com

Media Relations
+86 (10) 8911-6155
Press@JD.com

The MIL Network –

February 20, 2025
MIL-OSI United Nations: IOM-FMM Capacity Building with SMEs on Fair and Ethical Recruitment and Employment of Migrant Workers in Malaysia
Source: International Organization for Migration (IOM)

Selangor, Malaysia– IOM Malaysia in collaboration with the Federation of Malaysian Manufacturers (FMM) has kicked off the capacity building sessions on Fair and Ethical Recruitment and Employment of Migrant Workers with Small and Media Enterprises (SMEs) representatives in Malaysia on 13th February 2025 in Kuala Lumpur.

SME Representatives deepened their understanding in the implementation of fair and ethical recruitment and employment of migrant workers including human rights due diligence. Throughout the interactive discussion, SME representatives shared their experiences and challenges, identified areas for support in implementing practices.

“IOM is pleased to continue our partnership with the Federation of Malaysian Manufacturers (FMM). This is an effort to provide adequate support, especially to SMEs involved in the manufacturing supply chain that employs migrant workers, who constitute 31% of the workforce in this sector in Malaysia. Most importantly, this series of workshops aims to capacitate SMEs to adhere to human rights and labour standards in their operations and throughout their supply chains” Amanda Ng Seang Wei, National Programme Officer.

SMEs are invited to attend the upcoming free capacity-building sessions this year. The sessions equip participants with the knowledge and tools necessary to:
- Identify and mitigate risks associated with migrant labour and human rights violations, thereby safeguarding their operations and reputation.
- Understand the international standards and best practices in business ethics, migration policies and human rights protection of migrant workers.
- Understand the importance of promoting fair and ethical recruitment and employment of migrant workers to reduce exploitative recruitment and labour practices in their operations and supply chain.
- IOM together with FMM will continue to conduct these sessions throughout Malaysia in Melaka, Sarawak, Sabah, Pahang, Kedah, Perak, Penang, and Johor. Any SMEs who are interested in participating in this free training are encouraged to contact FMM through:
  For more information, please contact Amanda Ng Seang Wei at sng@iom.int.
  
  The Migration, Business and Human Rights Programme in Asia (MBHR Asia) is a five-year regional programme and is funded by the European Union and Government of Sweden. The programme will run from 2024-2028 across Cambodia, Malaysia, Nepal, Indonesia, the Philippines, Thailand and Viet Nam.
MIL OSI United Nations News –
February 20, 2025
MIL-OSI China: Singapore’s domestic wholesale sales decline 4.4 pct in Q4 2024

Source: China State Council Information Office

Singapore’s domestic wholesale sales fell 4.4 percent year-on-year in the fourth quarter of 2024, according to data released by the Singapore Department of Statistics on Thursday.

Excluding petroleum, domestic wholesale sales declined by 0.7 percent. Most wholesale trade industries saw a drop in domestic sales, with the Industrial and Construction Machinery sector recording the steepest decline of 22.6 percent due to “lower sales of electrical and wiring accessories,” the department said in a report.

On a quarter-on-quarter basis, seasonally adjusted domestic wholesale sales rose 4.6 percent in the fourth quarter. Excluding petroleum, domestic sales increased by 1.3 percent compared to the previous quarter.

Meanwhile, Singapore’s foreign wholesale sales declined 2.9 percent year-on-year in the fourth quarter. However, excluding petroleum, foreign wholesale sales grew by 2.1 percent.

Compared to the previous quarter, seasonally adjusted foreign wholesale sales fell 2.2 percent in the fourth quarter. Excluding petroleum, foreign wholesale sales dropped 1.3 percent.

MIL OSI China News –

February 20, 2025
MIL-OSI China: Dubai International Financial Center marks 20 years, strengthens ties with China

Source: China State Council Information Office

Dubai International Financial Center (DIFC), located in the United Arab Emirates (UAE), has strengthened its position as the leading financial hub in the Middle East, Africa and South Asia region after 20 years of growth, with a strong focus on deepening economic ties with China.

In recent years, the center has witnessed a notable rise in the number of Chinese companies joining its ecosystem, further establishing Dubai as a key gateway for Chinese financial institutions seeking access to the Middle East and the Belt and Road Initiative partner countries, according to press releases issued recently by Dubai authorities.

In 2024, DIFC reported a 25% year-on-year increase in active companies, reaching a total of 6,920 firms, with a significant surge in the number of Chinese financial institutions and multinational corporations establishing a presence. Notably, China’s Bank of Communications inaugurated its regional headquarters in DIFC in November 2024, following in the footsteps of other Chinese financial giants such as the Agricultural Bank of China and the Bank of China. Collectively, these Chinese institutions now account for over 30% of DIFC’s total banking and capital markets assets, solidifying Dubai’s reputation as the UAE’s largest hub for Chinese financial firms.

“DIFC has become the financial center of choice for Chinese entities within the finance sector as well as multinational companies,” said Arif Amiri, chief executive officer of DIFC Authority. “We remain committed to providing Chinese businesses with the best-in-class platform that will help shape their growth and expansion within the Middle East, Africa and South Asia region.”

The growing role of Chinese financial institutions in Dubai is also evident in their active participation in the bond market. Chinese banks have been issuing bonds on Nasdaq Dubai, including green bonds that fund renewable energy, clean transportation and water desalination projects across the UAE and beyond. Most recently, in November 2024, bonds worth $2 billion were listed on Nasdaq Dubai by China’s Ministry of Finance.

In 2024, DIFC achieved impressive performances across multiple sectors. The center’s combined revenues reached $484 million, a 37% increase from the previous year, with operating profit soaring 55% to $363 million. The technology and innovation sector was a standout performer, growing by 38% to 1,245 companies in 2024.

Looking ahead, DIFC remains committed to expanding its financial and technology sectors, with major initiatives such as the Dubai AI Campus, and the upcoming DIFC Funds Center, which is set to open in 2025. These efforts, combined with Dubai’s ambition to become the top global financial center, further highlight DIFC’s role in attracting Chinese businesses and fostering long-term growth across the region, according to press releases from the center.

MIL OSI China News –

February 20, 2025
MIL-OSI Asia-Pac: President Lai attends opening of 2025 Halifax Taipei forum

Source: Republic of China Taiwan

On the afternoon of February 20, President Lai Ching-te attended the opening of the 2025 Halifax Taipei forum. In remarks, President Lai thanked the Halifax International Security Forum for their strong support for Taiwan, and for having chosen Taiwan as the first location outside North America to hold a forum. Noting that we face a complex global landscape, the president called on the international community to take action. He said that as authoritarianism consolidates, democratic nations must also come closer in solidarity, and called on the international community to create non-red global supply chains, as well as unite to usher in peace. President Lai emphasized that Taiwan will work toward maintaining peace and stability in the Taiwan Strait, and collaborate with democratic partners to form a global alliance for the AI chip industry and together greet a bright, new era.
A transcript of President Lai’s remarks follows:
To begin, I want to give a warm welcome to all the distinguished guests here at the very first Halifax Taipei forum. The Halifax International Security Forum, held every year in Canada, has been an important gathering for freedom-loving nations worldwide.
I would like to thank Halifax and President [Peter] Van Praagh for their strong support for Taiwan. Every year since 2018, Taiwan has been invited to participate in the forum. Last year, former President Tsai Ing-wen was invited to speak, and this year, Halifax has chosen Taiwan as the first location outside North America to hold a forum.
As President Van Praagh has said, “While the security challenges ahead are too big for any single country to solve alone, there is no challenge that can’t be met when the world’s democracies work together.” Today, we have world leaders and experts who traveled from afar to be here, showing that they value and support Taiwan. It demonstrates solidarity among democracies and the determination to take on challenges as one.
I would like to express my gratitude and admiration to all of you for serving as defenders of freedom. At this very moment, Russia’s invasion of Ukraine is still ongoing. Authoritarian regimes including China, Russia, North Korea, and Iran continue to consolidate. China is hurting economies around the world through its dumping practices. We face grave challenges to global economic order, democracy, freedom, peace, and stability.
Taiwan holds a key position on the first island chain, directly facing an authoritarian threat. But we will not be intimidated. We will stand firm and safeguard our national sovereignty, maintain our free and democratic way of life, and uphold peace and stability across the Taiwan Strait. Taiwan cherishes peace, but we also have no delusions about peace. We will uphold the spirit of peace through strength, using concrete actions to build a stronger Taiwan and bolster the free and democratic community.
I sincerely thank the international community for continuing to attach importance to the situation in the Taiwan Strait. Recently, US President Donald Trump and Japan’s Prime Minister Ishiba Shigeru issued a joint leaders’ statement expressing their firm support for peace and stability across the Taiwan Strait, and for Taiwan’s participation in international affairs.
As we face a complex global landscape, I call on the international community to take the following actions:
First, as authoritarianism consolidates, democratic nations must also come closer in solidarity.
Just a few days ago, the top diplomats of the US, Japan, and South Korea held talks, underlining the importance of maintaining peace and stability across the Taiwan Strait. They also conveyed their stance against “any effort to destabilize democratic institutions, economic independence, and global security.” On these issues, Taiwan will also continue to contribute its utmost.
I recently announced that we will prioritize special budget allocations to ensure that our defense budget exceeds 3 percent of GDP.
Soon after I assumed office last year, I formed the Whole-of-Society Defense Resilience Committee at the Presidential Office. This committee aims to combine the strengths of government and civil society to enhance our resilience in national defense, economic livelihoods, disaster prevention, and democracy. We will also deepen our strategic partnerships in the democratic community to mutually increase defense resilience, demonstrate deterrence, and achieve our goal of peace throughout the world.
Second, let’s create non-red global supply chains.
For the democratic community to deter the expansion of authoritarianism, it must have strong technological capabilities. These can serve as the backbone of national defense, promote industrial development, and enhance economic resilience. So, in addressing China’s red supply chain and the impact of its dumping, Taiwan is willing and able to work with global democracies to maintain the technological strengths among our partners and build resilient non-red supply chains.
As a major semiconductor manufacturing nation, Taiwan will introduce an initiative on semiconductor supply chain partnerships for global democracies. We will collaborate with our democratic partners to form a global alliance for the AI chip industry and establish democratic supply chains for industries connected to high-end chips. The achievements of today’s semiconductor industry in Taiwan can be attributed to our collective efforts. Government, industry, academia, and research institutions had to overcome various challenges over the last 50 years for us to secure this position.
We hope Taiwan can serve as a base for linking the capabilities of our democratic partners so that each can play a suitable role in the semiconductor industry chain and develop its own strengths, deepening our mutually beneficial cooperation in technology. This benefits all of us. Moreover, it allows us to further enhance deterrence and maintain global security.
Third, let’s unite to usher in peace.
China has not stopped intimidating Taiwan politically and militarily. Last year, China launched several large-scale military exercises in the Taiwan Strait. Its escalation of gray-zone aggression now poses a grave threat to the peace and stability of the Indo-Pacific region. As a responsible member of the international community, Taiwan will maintain the status quo. We will not seek conflict. Rather, we are willing to engage in dialogue with China, under the principles of parity and dignity, and work toward maintaining peace and stability in the Taiwan Strait.
As the agenda of this forum suggests, democracy and freedom create more than just opportunities; they also bring resilience, justice, partnerships, and security.
Taiwan will continue working alongside its democratic partners to greet a bright, new era. Once again, a warm welcome to all of you. I wish this forum every success. Thank you.
Also in attendance at the event were Mrs. Abe Akie, wife of the late former Prime Minister Abe Shinzo of Japan, and Halifax International Security Forum President Van Praagh.

MIL OSI Asia Pacific News –

February 20, 2025
MIL-OSI Banking: Secretary-General of ASEAN receives the Permanent Representative of Viet Nam to ASEAN

Source: ASEAN

Secretary-General of ASEAN, Dr. Kao Kim Hourn, today received the Permanent Representative of Viet Nam to ASEAN, H.E. Ambassador Dr. Ton Thi Ngoc Huong, at the ASEAN Headquarters/ASEAN Secretariat. Their discussion underscored Viet Nam’s steadfast commitment to ASEAN’s shared goals, explored key regional priorities, and reaffirmed shared efforts in advancing ASEAN Community-building process. SG Dr. Kao congratulated Viet Nam for organising 2nd ASEAN Future Forum to be held in Ha Noi, Viet Nam, which he will attend.

The post Secretary-General of ASEAN receives the Permanent Representative of Viet Nam to ASEAN appeared first on ASEAN Main Portal.

MIL OSI Global Banks –

February 20, 2025
MIL-OSI Banking: Secretary-General of ASEAN delivers remarks at the Launch of the Australia-Southeast Asia Regional Development Partnership Plan (2024-2028)

Source: ASEAN

Secretary-General of ASEAN, Dr. Kao Kim Hourn, delivered remarks at the Launch of the Australia-Southeast Asia Regional Development Partnership Plan (2024-2028) at the ASEAN Headquarters/ASEAN Secretariat today. SG Dr. Kao highlighted the longstanding relations between ASEAN and Australia and the continued strengthening of cooperation for over more than five decades. SG Dr. Kao welcomed the launch of the partnership plan, which will bring to fruition the priorities that both sides share as part of the ASEAN-Australia Comprehensive Strategic Partnership and Australia’s continued support for ASEAN Community building and integration.

Download the full remarks here

The post Secretary-General of ASEAN delivers remarks at the Launch of the Australia-Southeast Asia Regional Development Partnership Plan (2024-2028) appeared first on ASEAN Main Portal.

MIL OSI Global Banks –

February 20, 2025
MIL-OSI Asia-Pac: eHealth enrolment for children opens

Source: Hong Kong Information Services

The Health Bureau has announced that from today citizens can open eHealth accounts for their children via the one-stop platform on the eHealth mobile application.

Citizens who are registered with eHealth can use the eHealth app to register their children, provided they are under 16, and verify their identities through the “My Family” function. Creating an account involves providing a photo of each child’s Hong Kong Birth Certificate, and filling in the required information.

Upon successful registration, children can start building a lifelong electronic health record and receive coherent healthcare services as they grow up. Through the “My Family” function, parents can also access and manage their children’s health records, including vaccination records, growth records, and details of allergies or adverse drug reactions.

From today until May 31, children will earn health coins on their eHealth App account, for gift redemption, following successful registration by their parents.

During this period, parents who register children under one year old will also receive a limited-edition Newborn Gift Box, which includes a multipurpose baby stroller bag, a mini soft tape measure, an eHealth picture book and other exquisite gifts.

For gift box redemptions, eligible parents simply need to use the “My Family” function on the app and select a delivery address in accordance with the instructions. Click here for details.

In September, the bureau launched its “e+ Life” health challenge platform on eHealth to encourage public participation in various health challenges, including
“e+ Go to the Park” and the now-concluded “10 000 Steps a Day Walking Challenge 2024”.

From today until May 31, citizens can use health coins earned from “e+ Life” or registering their children on eHealth to redeem rewards. Visit the thematic website for more details, or call 3467 6300, from 9am to 9pm, from Mondays to Fridays.

MIL OSI Asia Pacific News –

February 20, 2025

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Category: Asia

Consolidated balance sheet of the Eurosystem

Notes

I. Economic Activity and Prices