Linklogis Reports Strong Growth in First Half of 2024, Plans Strategic Acquisition

Linklogis Inc. (09959.HK) has released its interim results for the first half of 2024, showcasing robust growth and strategic expansion plans. The company, a leader in supply chain finance technology solutions, reported a 17% year-over-year increase in total transaction volume, reaching RMB165.9 billion.

Revenue from principal activities grew by 5.6% to RMB410 million, with a notable improvement in gross profit margin to 70.9%. Linklogis maintained a strong financial position with cash reserves of RMB5.1 billion, allowing for continued shareholder returns through dividends and share repurchases.

A key highlight of the report is Linklogis' intention to acquire Shenzhen Bytter Technology Co., Ltd., a move aimed at strengthening its position in treasury management and supply chain finance technology. This acquisition is expected to enhance Linklogis' ability to serve state-owned enterprises and large-to-medium-sized private companies with advanced financial management platforms.

The company's market share remains dominant, with a 20.9% share in third-party supply chain finance technology solutions in China, maintaining its top position for the fourth consecutive year. Linklogis has expanded its customer base, now serving 856 anchor enterprises and financial institutions, a 16% increase from 2023.

In terms of product innovation, Linklogis has made significant strides in developing "de-anchored" business models for supply chain finance, offering comprehensive solutions including order financing and distributor financing. The company has also seen substantial growth in its cross-border operations, with a 63% increase in supply chain assets processed by its Cross-border Cloud.

Linklogis continues to invest heavily in research and development, with R&D expenses reaching RMB178 million in the first half of 2024. The company has made notable advancements in AI technology, including the development of "AI Agent," an AI-based platform for supply chain document verification, which has already been implemented by several financial institutions.

The company's commitment to sustainable finance is evident in its processing of RMB15 billion in sustainable supply chain-related transactions, a 241% increase from the previous year. Linklogis has also received recognition for its ESG efforts, including an "A" rating from Wind Information and inclusion in S&P Global's The Sustainability Yearbook (China Edition) 2024.

Charles Song, founder, chairman, and CEO of Linklogis, expressed optimism for the company's future, emphasizing a focus on core businesses that drive sustainable revenue growth and profitability. He highlighted plans to leverage AI-driven technological breakthroughs and enhance customer value through innovative product applications.

The company's strong performance and strategic initiatives position it well for continued growth in the supply chain finance technology sector, with potential implications for the broader financial technology industry in China and beyond.