Linklogis Reports Strong Interim Results and Strategic Acquisition Plans

Linklogis Inc. (09959.HK) has reported robust interim results for the first half of 2024, with a revenue of RMB410 million, marking a 5.6% increase from the previous year. The total transaction volume processed by Linklogis' technology solutions reached RMB165.9 billion, a year-over-year growth of 17%. The company’s gross profit margin improved to 70.9%, reflecting its enhanced financial performance.

Linklogis maintains a strong financial position with cash reserves of RMB5.1 billion. The company has returned HK$215 million in cash dividends and repurchased shares totaling HK$278 million this year, indicating a commitment to enhancing shareholder value.

In a strategic move, Linklogis has signed a letter of intent to acquire Shenzhen Bytter Technology Co., Ltd., positioning itself as Bytter’s controlling shareholder upon completion. This acquisition aims to integrate the strengths of both companies in treasury management and supply chain finance technology, enabling the development of advanced financial management platforms for state-owned and private enterprises.

The company's market presence has remained strong, with the total transaction volume of supply chain assets processed by its technology solutions reaching RMB156 billion, a 15% increase from the previous year. Notably, the Anchor Cloud processed RMB123.7 billion in supply chain assets, a 40% year-over-year growth, while the Multi-tier Transfer Cloud saw a 57% increase, processing RMB86.3 billion.

Linklogis has expanded its customer base significantly, adding 152 new anchor enterprises and financial institution customers, totaling 856 by mid-2024. The company's anchor enterprises span all 31 industries listed in the SWS Industry Classification, with 13 industries contributing more than RMB2 billion in supply chain asset transactions.

On the technology front, Linklogis continues to innovate, with R&D expenses reaching RMB178 million. The company has developed the AI Agent platform for supply chain document verification, enhancing automation and accuracy. The platform has been recognized with the 'Best AI Technology' award from The Asian Banker.

Linklogis is also advancing in the development of its large language model (LLM), LDP-GPT, to enhance operations, risk control, and customer acquisition for financial institutions. The company is exploring cross-border and international supply chain finance, facilitating Chinese enterprises in expanding their global supply chain industry-finance systems.

In terms of sustainability, Linklogis has made significant strides, with assets related to sustainable supply chains reaching RMB15 billion, a 241% increase from the previous year. The company’s ESG efforts have been recognized with several awards, including the 'Best China ESG Solution Award' from The Asset.

Charles Song, founder, chairman, and CEO of Linklogis, emphasized the company's focus on core businesses, AI-driven technological advancements, and customer engagement to drive sustainable revenue growth and profitability in the second half of the year.