Group 1 - Hong Kong logistics stocks experienced a decline, with Yue Gang Wan Holdings (01396.HK) dropping nearly 5% [1] - ZTO Express (02057.HK) fell over 3% [1] - Kerry Logistics (00636.HK) and Seaspan Corporation (01308.HK) both decreased by more than 1% [1]

Financial Highlights - The company's revenue increased by 53% to HK$81771 million[8, 11] - Core operating profit increased by 88%[8] - Profit attributable to shareholders increased by 174% to HK$7939 million[8, 38] - Final dividend was HK 50 cents per share[8] - Gearing was 29%[8] Segment Performance - Integrated Logistics (IL) segment profit decreased by 29% to HK$1868 million[8, 15, 19] - International Freight Forwarding (IFF) segment profit increased by 389% to HK$4860 million[8, 15, 31] Revenue by Region - Hong Kong revenue contribution was 11%[12] - Mainland of China revenue contribution was 32%[12] - Asia (excluding Greater China) revenue contribution was 18%[12] - Americas revenue contribution was 22%[12] - EMEA revenue contribution was 12%[12] Segment Profit by Region - Hong Kong segment profit contribution was 22%[17] - Mainland of China segment profit contribution was 29%[17] - Americas segment profit contribution was 23%[17] - EMEA segment profit contribution was 4%[17]

Financial Performance Highlights - Revenue increased by 39% to HK$48,034 million[8] - Core Operating Profit increased by 74%[8] - Profit Attributable to Shareholders decreased by 30% to HK$2,377 million[8,31] - Interim dividend increased by 96% to 28 HK cents per share[8] Segment Performance - Segment Profit from continuing operations increased by 70% to HK$3,722 million[8,10] - IL (Integrated Logistics) Segment Profit increased by 28% to HK$717 million[8,10] - E&E (E-commerce & Express) Segment Profit decreased to HK$(393) million[8,10] - IFF (International Freight Forwarding) Segment Profit increased by 140% to HK$3,398 million[8,10] Regional Performance - Americas region saw the largest increase in revenue, up by 96% to HK$16,458 million[29] - Americas region saw the largest increase in segment profit, up by 273% to HK$1,613 million[10,48] - Revenue from Mainland China increased by 12% to HK$12,652 million[29] - Segment Profit from Mainland China increased by 41% to HK$927 million[10,48] Financial Position - Gearing ratio increased to 58.4%[8,34]

Financial Highlights - The company's revenue reached HK$86,649 million, a 10% increase[10] - Core operating profit was HK$4,790 million, up by 12%[10] - Core net profit amounted to HK$3,725 million, representing an 11% growth[10] - Profit attributable to shareholders was HK$3,579 million, a decrease of 55%[10] - Final dividend per share was HK 38 cents, with a full-year dividend of HK 66 cents per share[10] - Gross gearing stood at 483%[10] Segment Performance - Integrated Logistics (IL) segment profit was HK$1,375 million, a 28% increase[10, 13] - E&E segment experienced a loss of HK$826 million[10, 13] - International Freight Forwarding (IFF) segment profit was HK$4,703 million, a 3% decrease[10, 13] Regional Performance - Hong Kong's IL segment profit increased by 66% from HK$455 million to HK$756 million[13] - Mainland China's IL segment profit decreased by 3% from HK$353 million to HK$343 million[13] - Asia's IL segment profit increased by 22% from HK$219 million to HK$267 million[13] - Americas' IFF segment profit increased by 28% from HK$1,542 million to HK$1,978 million[13] - EMEA's IFF segment profit increased by 35% from HK$295 million to HK$399 million[13] - Oceania's IFF segment profit increased by 37% from HK$89 million to HK$122 million[13]

Financial Highlights - The company's revenue decreased by 47% YoY, reaching HK$25315 million[8, 56] - Core operating profit experienced a significant drop of 84% YoY[8] - Core net profit attributable to shareholders decreased by 85% YoY, amounting to HK$368 million[8] - Interim dividend was 85 HK cents per share[8] Segment Performance - Integrated Logistics (IL) segment profit increased slightly by 0.2% YoY, reaching HK$718 million[8, 17] - International Freight Forwarding (IFF) segment profit decreased significantly by 82% YoY, amounting to HK$621 million[9, 17] - E-commerce & Express (E&E) segment continued to register a loss[17, 37] Regional Performance - In Hong Kong, IL segment profit decreased by 27% YoY, while IFF segment profit decreased significantly by 95% YoY[17, 28] - In Mainland China, IL segment profit increased by 44% YoY, while IFF segment profit decreased by 70% YoY[17, 28] - In Asia (ex-Greater China), IL segment profit increased by 22% YoY, while IFF segment profit decreased by 78% YoY[17, 28] - IFF segment profit in Americas decreased by 92% YoY[20, 28] Cash, Debt & Equity - Cash and bank balances decreased from HK$9240 million to HK$7760 million[41] - Total bank loans and overdrafts decreased from HK$8897 million to HK$8242 million[41] - Gearing ratio decreased slightly from 48.3% to 44.5%[10, 43]

Financial Performance Highlights - Revenue increased by 68% to HK$36,709 million[7,9,11,41] - Core Operating Profit increased by 70% to HK$2,536 million[7] - Core Net Profit increased by 81% to HK$1,530 million[7] - Profit Attributable to Shareholders increased by 215% to HK$3,380 million[7,41] Segment Performance - Integrated Logistics (IL) segment profit increased by 13% to HK$1,292 million[7,14,18,19] - International Freight Forwarding (IFF) segment profit increased significantly by 279% to HK$1,437 million[7,14,25,26] Regional Performance - Revenue growth was strong across all regions, with Asia (ex-Greater China) increasing by 27%, Americas by 186%, and EMEA by 63%[11] - Segment profit also saw substantial growth in various regions, including Asia (ex-Greater China) increasing by 43%, Americas by 481%, and EMEA by 401%[16] Financial Position - The company's gearing ratio is 30.8%[7,50] - Interim dividend is 21.1 HK cents per share[7]

RESULTS 0 © Kerry Logistics Network Limited. All rights reserved. DISCLAIMER This presentation was prepared by Kerry Logistics Network Limited (the "Company") for reference and general information purposes only. This presentation is not intended to and does not constitute investment advice, recommendation, invitation or offer to enter into, any agreement to purchase, acquire, dispose of, subscribe for or underwrite any securities, shares, debentures or structured products. The information contained in this ...

Financial Highlights - Revenue increased by 10% to HK$25432 million[12] - Segment Profit for Integrated Logistics (IL) increased by 3% to HK$693 million[12] - Segment Profit for International Freight Forwarding (IFF) increased by 18% to HK$740 million[12] - Core Operating Profit increased by 11% to HK$1200 million[12] - Profit Attributable to the Shareholders increased significantly by 126% to HK$831 million[12] Regional Revenue Performance (1H24 vs 1H23) - Hong Kong revenue increased by 4% from HK$3318 million to HK$3440 million[16] - Mainland China revenue increased by 5% from HK$8089 million to HK$8457 million[16] - Asia (ex-Greater China) revenue increased by 1% from HK$3684 million to HK$3715 million[16] - Americas revenue saw a substantial increase of 39% from HK$4386 million to HK$6092 million[16] - EMEA revenue increased by 3% from HK$3226 million to HK$3310 million[16] - Oceania revenue decreased by 15% from HK$494 million to HK$418 million[16] Integrated Logistics (IL) Segment Profit Performance (1H24 vs 1H23) - Hong Kong IL profit decreased by 11% from HK$288 million to HK$256 million[19] - Mainland China IL profit decreased by 5% from HK$229 million to HK$217 million[19] - Asia (ex-Greater China) IL profit increased by 9% from HK$192 million to HK$209 million[19] International Freight Forwarding (IFF) Segment Profit Performance (1H24 vs 1H23) - Hong Kong IFF profit increased significantly by 263% from HK$9 million to HK$33 million[23] - Mainland China IFF profit increased by 25% from HK$229 million to HK$286 million[23] - Americas IFF profit increased significantly by 65% from HK$125 million to HK$207 million[23] - EMEA IFF profit decreased significantly by 39% from HK$87 million to HK$54 million[23] - Oceania IFF profit decreased significantly by 48% from HK$41 million to HK$21 million[23]

Financial Performance - Revenue for the fiscal year 2024 reached HKD 58,274 million, representing a 23% increase compared to the previous year[11] - Core operating profit was HKD 2,814 million, up 23% from HKD 2,288 million in 2023[25] - Shareholders' profit attributable to the company increased by 95% to HKD 1,542 million from HKD 791 million in 2023[11] - The company reported a net profit of HKD 1,613 million after tax, compared to HKD 1,442 million in 2023[25] - In 2024, the company's revenue grew by 23% to HKD 58.274 billion, compared to HKD 47.408 billion in 2023[35] - Core operating profit increased by 23% to HKD 2.725 billion, up from HKD 2.207 billion in the previous year[35] - Core net profit rose by 12% to HKD 1.357 billion, compared to HKD 1.214 billion in 2023[35] Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.15 per share, reflecting a commitment to returning value to shareholders[11] - The company aims to distribute approximately 30% of its core net profit as dividends to shareholders at the end of each fiscal year, subject to board discretion and shareholder approval[141] Capital Expenditure and Investments - Capital expenditure for the year was HKD 5,862 million, focusing on investments in property, machinery, and equipment[22] - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency[11] - Future guidance indicates continued growth, with expectations for revenue to exceed HKD 60 billion in the next fiscal year[11] Logistics Operations - The logistics segment generated revenue of HKD 32,401 million, while the international freight segment contributed HKD 15,007 million[13] - The international freight segment experienced a 39% increase in profit, driven by growth in key markets including mainland China, the US, Hong Kong, and other Asian regions[41] - The integrated logistics segment's profit decreased by 3%, with a 12% decline in Hong Kong operations due to a sluggish local economy[36][38] Market Presence and Expansion - Total owned floor area across logistics facilities is approximately 30,000,000 square feet, with a significant portion being in China[26] - Kerry Siam Seaport has a total area of 6,366,192 square feet, with 84.92% owned by the company[26] - The company is leveraging its diverse market presence in Southeast Asia and South Asia to capture growth opportunities amid shifting investment focuses due to policy changes[49] Awards and Recognition - The group received a total of 163 awards, including corporate awards, industry awards, and recognitions from customers and business partners[62] - The group was recognized as the Outstanding Global Logistics Company and Outstanding Sustainable Development Logistics Company in the 2024 Hong Kong Economic Daily Corporate Awards[57] - The company achieved the Best Third-Party Logistics Service Provider award at the 2024 Asia Cargo Logistics and Supply Chain Awards[66] Governance and Corporate Structure - The company emphasizes high standards of corporate governance to protect shareholder interests and enhance corporate value[72] - The board consists of 11 members, including 3 executive directors and 8 non-executive directors, ensuring a diverse governance structure[86] - The company has established a comprehensive and transparent management structure to adapt to market changes and seize opportunities[77] Risk Management and Compliance - The company has not identified any significant deficiencies in the effectiveness of its risk management and internal control systems[131] - The Risk Management Committee continuously monitors the company's risk management system and reviews the effectiveness of financial, operational, and compliance controls[121] - The company has implemented a robust due diligence process for acquisitions to ensure proper integration of new members and mitigate operational risks[193] Sustainability and Corporate Responsibility - KLN plans to adopt renewable energy and electric long-haul trucks, supported by a HKD 1 billion sustainable development-linked loan to promote sustainability initiatives[45] - The company is committed to providing humanitarian aid and disaster logistics support globally, enhancing its brand value and corporate responsibility[32] - The company has received ISO 14001 international certification, reflecting its commitment to high environmental standards and sustainable practices[180] Employee and Talent Management - The group had approximately 18,700 employees as of December 31, 2024, a decrease from about 33,100 employees on December 31, 2023, primarily due to the completion of the KEX Express Thailand distribution[55] - The company has established a management trainee program to develop potential future leaders and reduce reliance on key personnel[194] - The company has received multiple awards for its employee welfare programs, including Gold for Excellence in Employee Care and Welfare[64] Technology and Innovation - The company aims to enhance its global information technology strategy, focusing on digitalization and artificial intelligence innovations to improve customer experience and streamline operations[169] - The company has appointed a new Chief Technology Officer to lead its global IT strategy and ensure data security while maximizing data value[169] Challenges and Future Outlook - The company anticipates facing new challenges in the global logistics industry due to macroeconomic and geopolitical uncertainties in the coming year[32] - The company is facing risks related to global political and economic uncertainties, which may hinder sustainable growth and lead to a decline in cargo volume[192] - The company anticipates ongoing supply chain disruptions in 2025 due to fluctuating international trade policies and potential new tariffs, which may create both challenges and opportunities[48]

Group 1 - The core viewpoint of the news is that Kerry Logistics Network Limited (KLN) reported strong financial performance for the fiscal year 2024, with significant growth in revenue and profits across various segments [1][2] - The group's total revenue increased by 23% to HKD 58.274 billion, while core operating profit also rose by 23% to HKD 2.725 billion [1] - Core net profit grew by 12% to HKD 1.357 billion, and profit attributable to shareholders surged by 95% to HKD 1.542 billion [1] - The integrated logistics business contributed a profit of HKD 1.251 billion, while the international freight forwarding business generated a profit of HKD 1.950 billion [1] - The international freight forwarding business saw a remarkable growth of 39%, driven by strong performance in key markets including mainland China, Hong Kong, the United States, and other regions in Asia [1] - KLN's industrial project logistics division enhanced its service capabilities, contributing nearly HKD 1.7 billion in revenue, which is expected to be a future growth highlight for the group [1] - A joint venture with SF Express, operational since November 2023, provided ground handling services at the international cargo terminal of Ezhou Airport in China, generating over HKD 200 million in revenue in its first year, exceeding expectations [1] Group 2 - KLN's Executive Director and CEO, Zhang Bingquan, noted that the global economy is slowly recovering, but macroeconomic conditions still face various challenges [2] - The company demonstrated resilience in its 2024 performance, achieving double-digit growth in both revenue and core net profit, outperforming international peers [2] - KLN announced a global brand transformation plan, rebranding from "Kerry Logistics Network" to "KLN," aiming to establish a more consistent and distinctive corporate image and strengthen its unique strategic positioning and value proposition to customers [2]