On April 23, 2024, Linklogis Inc. (09959.HK, “Linklogis”), a
leading supply chain finance technology solution provider in China,
released its first-quarter results for 2024.
The operational and financial indicators of
the company have shown signs of comprehensive
recovery and improvement, achieving a strong start to the
year. The total transaction volume processed by its technology
solutions in the first quarter reached RMB96.2 billion, a
year-over-year increase of 45%, reaching a historical high for a
single quarter. The number of customers continued to grow rapidly,
with an addition of 47 new customers and 122 new partners, bringing
the total number of partners to 1,928.
In terms of financial
performance, Linklogis achieved significant
year-over-year increases in its revenue and income from
principal activities in the first quarter. As of April 22, 2024,
the cash reserves of Linklogis reached RMB5.2
billion, an increase of RMB400 million compared to
December 31, 2023.
Additionally, due to ample financial
resources, Linklogis reaffirmed its commitment to
implementing a share repurchase plan of up to $100 million,
continuing to enhance shareholder returns. Previously, due
to the better-than-expected performance, dividends, and
repurchase plans, Linklogis experienced a surge of over 35% in
its stock price after releasing its 2023 annual results, attracting
significant market attention.
Transaction
Volume Reaches RMB96.2 Billion,
with Strong Growth
in Core Business Sectors
In 2024, Linklogis continued to focus on the
development of its two core sectors: Anchor Cloud
and FI Cloud, while simultaneously pursuing stable growth
and high-quality development. Regarding the Multi-tier
Transfer Cloud within the Anchor Cloud, it continued to
maintain rapid growth, processing a total volume of supply
chain assets amounting to RMB47.9 billion in the first
quarter, a year-over-year increase of 94%.
Linklogis accelerated the replacement of old
growth drivers with new ones. Based on its asset-backed
securitization and multi-tier transfer products,
Linklogis drove the digitization and intelligence of
supply chain financial service platform through the output of
technological capabilities and service experiences, promoting the
healthy, stable, and orderly development of the industry
chain of supply chain finance. In the first quarter,
Linklogis cooperated with Dongfeng Motor
Corporation and helped it build a supply chain
finance service platform, which successfully
issued the first digital accounts receivable certificate to
suppliers. Linklogis also assisted in
the establishment of "Liugong Advanced Manufacturing
Accounts Receivable Asset Support Plan Phase 1". Besides, the
supply chain finance platform jointly built by Linklogis and Hubei
United Investment Group successfully landed the
first supply chain finance ABS business "CITIC Securities
- Hubei United Investment Supply Chain Asset Support
Plan Phase 1". Linklogis also landed the first
business of the localization project of China Ordins Group’s
supply chain finance platform. In addition, Linklogis
helped the "Sinomach E-Chain" under China National Machinery
Industry Corporation (Sinomach) and the Supplier Relationship
Management (SRM) System under SUMEC Group Corporation officially
complete the interconnection of data and business, achieving
trusted information exchange and realizing functions such as
automatic opening, circulation, and financing of digital accounts
receivable certificate.
Linklogis added 47 customers and 122
partners in the first quarter, bringing the total number
of customers to 776 and partners to 1,928. New
high-quality anchor enterprise customers include
Jiangxi Youse Construction, Honghua Group, Gold
Hongye Paper, MLILY, and
Wuyang Construction Group. New
financial institution partners include Jining Bank, Bohai
Bank, and Weifang Bank. With the trust and continuous use
of Linklogis’ products, the company's supply chain
financial technology solutions have maintained a customer retention
rate of 96%.
International Business Advances
Global
Presence, with Live-streaming E-commerce Becoming
a New Source
of Growth
In recent years, the rise of live-streaming
e-commerce and cross-border e-commerce has changed the business
models of traditional industries. Linklogis seizes the
development opportunities of digital economy and
live-streaming industry, grasping new sources
for economic growth. In the first quarter, Linklogis
facilitated small live-streaming merchants on Douyin, Kuaishou, PDD
and other platforms in
obtaining financing, reached cooperation with 5 new
financial institution partners, bringing the total number of
financial institution partners to 13.
Since the beginning of the year, Linklogis has
achieved frequent successes in its live-streaming e-commerce
business. Its e-commerce supply chain
products was launched on the Data Trading
Platform of Shenzhen Data Exchange, indicating that
Linklogis’ supply chain service products have been included in
the data trading product system of Shenzhen Data Exchange.
Linklogis has also reached comprehensive
and strategic cooperation with financial institutions
including Beijing Zhongguancun Bank and Meizhou
Hakka Bank in live-streaming e-commerce supply chain
finance, utilizing technological innovation to
help SMEs solve financing difficulties.
With the recovery of demand from merchants
on cross-border e-commerce platforms and tourism
platforms, Linklogis seizes the opportunity to accelerate its
"going global" strategy, driving an increase in business scale.
Currently, Linklogis has expanded its market and achieved
breakthroughs in cross-border business in multiple countries and
regions overseas, becoming the only domestic supply chain
finance technology enterprise with a
global presence. With respect to the platform-based
business, Linklogis has been collaborating with global platforms
including Infor, Amazon, and Shopee to provide comprehensive
digital cross-border trade financing services for SME merchants on
the platforms.
Linklogis partnered with Shopee, a leading
e-commerce platform in Southeast Asia, in the field
of cross-border supply chain finance. The
two sides combined advanced technologies such as big data
and blockchain with mature and rich service experience,
and launched the first phase of "Advanced Payment"
financing product, accelerating the capital turnover of
cross-border e-commerce merchants and shortening the
order repayment cycle.
In serving Chinese enterprises, Linklogis seized
the wave of Chinese companies going overseas and assisted large
domestic enterprises such as OPPO in in building and expanding
global supply chain financing systems, expanding its supply chain
finance platform to cross-border supply chain financing scenarios,
and facilitating the digital intelligence transformation of its
overseas supply chain system. Moreover, in 2024, Linklogis’
international business team broke into the Vietnamese and
Bangladeshi markets by establishing local teams in addition to its
existing offices in Hong Kong and Singapore.
Business
Momentum Shows Signs
of Recovery and
Improvement, and Dividends
and Repurchases Enhance Shareholder
Returns
In recent years, with abundant use
cases of the supply chain industry, the rapid development of
digital technology, and the continuous advancement of
financial technology, Linklogis seeks change in
opportunities, pursues vitality in development, fully
integrates with the industry, deeply explores
the industry, and reshapes the foundation of supply
chain finance, thus helping stabilize the industry
chain base and strengthen the resilience of the real economy. As a
leading enterprise in the supply chain finance technology
industry, Linklogis is also striving to become a pioneer and
promoter of the new round of productivity revolution, continuously
promoting economic growth and technological progress. Since
the beginning of the year, Linklogis has
participated in a national key research
and development program under "14th Five-Year Plan", won
"Best Sustainable Financial Solution" award from Standard Chartered
Bank, was selected as KPMG China Fintech Double 50 Enterprises, and
won “Annual Outstanding Financial Technology” award for
supporting high-quality development in the financial
sector of Shenzhen. These continuous
achievements demonstrate the company's solid
start.
In the 2023 annual results released on
March 26th, Linklogis announced a shareholder return plan,
intending to continuously enhance capital returns to shareholders
through cash dividends and share repurchases. The latest
cash reserves of Linklogis have reached RMB5.2
billion, with the management reaffirming their commitment
to enhancing shareholder returns through the implementation of a
share repurchase plan of up to $100 million.
Gloria Zhou
PR Manager
Linklogis
zhoushiqian(at)linklogis.com