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]

Investment Rating - The investment rating for the company is "Buy" with a target price of 8.50 HKD [7][8]. Core Views - The company reported a revenue of 58.27 billion HKD for 2024, representing a year-on-year growth of 22.9%, and a net profit of 1.54 billion HKD, up 94.8% year-on-year, which is in line with expectations [1][4]. - The international freight forwarding segment saw a profit of 1.95 billion HKD, a 39% increase year-on-year, primarily due to rising international sea and air freight rates [1][2]. - The comprehensive logistics segment experienced a profit decline of 3% year-on-year to 1.25 billion HKD, mainly due to weak demand [1][3]. - For 2025, it is anticipated that international shipping prices will significantly decline from the high base of 2024, while comprehensive logistics business is expected to improve with a recovery in overall macro demand [1][4]. Summary by Sections International Freight Forwarding - The revenue for the international freight forwarding business in 2024 was 43.83 billion HKD, a 35% increase year-on-year, with profits of 1.95 billion HKD, up 39% [2]. - Profit contributions by market include: Mainland China 670 million HKD (yoy +33%), Americas 610 million HKD (yoy +58%), Asia 320 million HKD (yoy +44%), Europe, Middle East, and Africa 230 million HKD (yoy +29%), Hong Kong 60 million HKD (yoy +27%), and Oceania 60 million HKD (yoy -8%) [2]. Comprehensive Logistics - The comprehensive logistics business reported a revenue of 14.45 billion HKD in 2024, a 4% decline year-on-year, with profits of 1.25 billion HKD, down 3% [3]. - Profit contributions by market include: Hong Kong 520 million HKD (yoy -12%), Asia 360 million HKD (yoy +25%), Mainland China 350 million HKD (yoy -11%), and Oceania 20 million HKD (yoy +28%) [3]. Earnings Forecast and Valuation - The earnings forecasts for 2025 and 2026 have been revised down by 15% and 18% to 1.34 billion HKD and 1.44 billion HKD, respectively, with a new forecast for 2027 at 1.54 billion HKD [4]. - The target price has been adjusted down by 15% to 8.50 HKD based on a PE ratio of 11.5x for 2025E [4].

Financial Performance - Revenue increased by 23% to HKD 58.27 billion for the year ended December 31, 2024, compared to HKD 47.41 billion in 2023[4] - Core operating profit rose by 23% to HKD 2.73 billion, up from HKD 2.22 billion in the previous year[4] - Core net profit grew by 12% to HKD 1.36 billion, compared to HKD 1.21 billion in 2023[4] - Shareholders' profit attributable increased by 95% to HKD 1.54 billion, up from HKD 791 million in 2023[4] - Total comprehensive income for the year amounted to HKD 1.15 billion, compared to HKD 747 million in 2023[6] - The company reported a net profit attributable to shareholders of HKD 1,320,290, compared to HKD 1,209,818 in the previous year, reflecting an increase of approximately 9.1%[16] Segment Performance - International freight business recorded a segment profit of HKD 1.95 billion, a 39% increase from HKD 1.40 billion in the previous year[4] - The logistics segment generated revenue of HKD 14,448,877 in 2024, slightly down from HKD 15,006,751 in 2023, reflecting a decrease of approximately 3.7%[16] - The international freight forwarding segment reported revenue of HKD 43,825,527, up from HKD 32,400,808 in 2023, marking a substantial increase of around 35.5%[16] - The mainland China segment achieved revenue of HKD 18,509,517, an increase from HKD 16,262,366 in 2023, representing a growth of approximately 13.8%[16] - The Americas region generated revenue of HKD 15,129,822, significantly up from HKD 9,733,852 in 2023, indicating an increase of about 55.5%[16] Dividends and Shareholder Returns - Proposed final dividend of HKD 0.15 per share to be paid on June 10, 2025[4] - A special interim dividend was declared on December 29, 2023, amounting to approximately HKD 983,215,000, based on the fair value of KEX Express Thailand shares[31] - The proposed final dividend for the year ending December 31, 2024, is HKD 271,114,000, which is an increase from HKD 234,966,000 in 2023[32] Assets and Liabilities - Non-current assets totaled HKD 20.42 billion, slightly down from HKD 20.70 billion in 2023[7] - Current assets increased to HKD 22.29 billion from HKD 19.35 billion in the previous year[7] - Total liabilities rose to HKD 15.52 billion, compared to HKD 13.18 billion in 2023[7] - Total equity decreased from HKD 20,107,259 thousand in 2023 to HKD 19,079,131 thousand in 2024, indicating a decline of about 5.1%[8] - The total bank loans and overdrafts amounted to HKD 8,989,214,000 in 2024, up from HKD 8,560,666,000 in 2023[43] Operational Changes and Strategic Focus - The company completed the distribution of all shares held in KEX Express Thailand as a special interim dividend, terminating certain express delivery operations[9] - The company reported that the performance of discontinued operations is presented separately in the consolidated financial statements for the year ended December 31, 2024[9] - The company has secured a five-year HKD 1 billion sustainable development-linked loan to promote sustainability initiatives[56] - The company is expanding its industrial project logistics division, contributing nearly HKD 1.7 billion in revenue, with expectations for future growth[54] - The group plans to leverage its market presence in Southeast Asia, particularly in Thailand, Vietnam, and Indonesia, to capture growth opportunities[58] Compliance and Governance - The company has established an Audit and Compliance Committee, which includes two independent non-executive directors and one non-executive director, with the chairperson possessing appropriate professional qualifications[69] - The Audit and Compliance Committee has reviewed the annual performance and believes it complies with relevant accounting standards and regulations[69] - The board has proposed to change the company's English name from "Kerry Logistics Network Limited" to "KLN Logistics Group Limited," pending shareholder approval[70] Future Outlook - The group anticipates that the abnormal supply chain conditions will persist into 2025, influenced by ongoing protectionism and geopolitical tensions in the Middle East[58] - The group expects infrastructure investment to rebound with the stabilization of the global economy, providing greater development space for its industrial project logistics business[59] - Future guidance suggests a revenue growth target of 18% for the next quarter[81] Employee and Operational Efficiency - The group has reduced its workforce to approximately 18,700 employees as of December 31, 2024, down from about 33,100 employees a year earlier due to the completion of the KEX Express Thailand distribution[64] - The group has maintained a low administrative expense ratio relative to revenue, significantly outperforming international peers[60] - The total administrative expenses allocated were HKD 476,548, slightly down from HKD 481,467 in 2023, showing a decrease of about 1.9%[16]

期 期 | --- | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------------------|-------|-------|-------|-------------------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Kerry LogisticsNetwork Limited KLN | | | | | | 嘉 里 物 流 赚 網 有 限 公 司 0636.HK [於其屬爐 厨房群處註目現立並於百林進存續之機絡免有限責任公司] | | | | MIX Paper | Bupperlingresponsible forestry F8C° C00744 ...

Financial Performance - Revenue increased by 10% year-on-year to HKD 25.432 billion (compared to HKD 23.197 billion in the first half of 2023) [3] - Core operating profit grew by 11% to HKD 1.200 billion (compared to HKD 1.078 billion in the first half of 2023) [3] - Core net profit also increased by 5% to HKD 606 million (compared to HKD 575 million in the first half of 2023) [3] - Profit attributable to shareholders for the first half of 2024 was HKD 831 million, a 126% increase year-on-year (compared to HKD 368 million in the first half of 2023) [3] - Total comprehensive income for the period was HKD 291.252 million, compared to a loss of HKD 114.605 million in the previous year [5] - Total revenue for the first half of 2024 was HKD 25,432,488, an increase from HKD 23,197,039 in the same period of 2023, representing a growth of approximately 9.7% [13] - Core operating profit for the first half of 2024 was HKD 1,199,655, compared to HKD 1,078,254 in 2023, marking an increase of approximately 11.2% [13] - The company reported a net profit attributable to shareholders of HKD 589,956, up from HKD 574,986 in the previous year, representing a growth of about 2.6% [13] Segment Performance - The logistics business recorded a segment profit of HKD 693 million, a slight decrease of 3% [3] - The international freight business reported a segment profit of HKD 740 million, an 18% increase [3] - Total revenue for the integrated logistics segment reached HKD 6,932,633,000 for the six months ended June 30, 2024, compared to HKD 6,210,869,000 for the same period in 2023, representing a year-on-year increase of approximately 11.6% [15] - Revenue from international freight forwarding was HKD 18,499,855,000 for the six months ended June 30, 2024, compared to HKD 16,107,544,000 for the same period in 2023, indicating a growth of approximately 14.8% [15] - The total segment profit for the Americas was HKD 206,761, compared to HKD 124,987 in the previous year, indicating a significant increase of around 65.2% [13] - The logistics segment experienced a 3% decline in profit due to slow economic recovery and weak local demand, particularly in Hong Kong and mainland China [39] Dividends and Shareholder Returns - The interim dividend per share is set at HKD 0.10, to be paid on September 23, 2024 [3] - The company declared a special interim dividend of approximately HKD 983,215,000, based on the fair value of its 907,200,000 shares in KEX Express Thailand, representing about 52.1% of all issued shares [25] - Basic earnings per share from continuing operations increased to HKD 0.33 for the six months ended June 30, 2024, compared to HKD 0.32 for the same period in 2023 [26] Assets and Liabilities - Non-current assets amounted to HKD 20.089 billion as of June 30, 2024, compared to HKD 20.699 billion at the end of 2023 [6] - Current liabilities totaled HKD 13.973 billion as of June 30, 2024, compared to HKD 13.183 billion at the end of 2023 [6] - As of June 30, 2024, total non-current liabilities amounted to HKD 8,006,780, an increase from HKD 7,358,856 as of December 31, 2023, reflecting a growth of approximately 8.8% [7] - The total equity as of June 30, 2024, was HKD 18,589,077, down from HKD 20,107,259 as of December 31, 2023, indicating a decrease of about 7.6% [7] - The total net accounts receivable as of June 30, 2024, was HKD 9,308,939,000, an increase from HKD 8,568,201,000 as of December 31, 2023 [29] - The total amount of accounts payable as of June 30, 2024, was HKD 4,698,517,000, an increase from HKD 4,310,572,000 as of December 31, 2023 [30] - The company’s total receivables, including prepayments and deposits, reached HKD 13,234,989,000 as of June 30, 2024, compared to HKD 11,920,703,000 as of December 31, 2023 [29] Operational Efficiency - Direct operating expenses for the six months ended June 30, 2024, were HKD 19,669,976,000, compared to HKD 17,533,317,000 for the same period in 2023, representing an increase of approximately 12.2% [19] - Financing costs for the six months ended June 30, 2024, totaled HKD 285,884,000, up from HKD 265,381,000 for the same period in 2023, indicating a rise of about 7.8% [20] - The group recognized a total tax expense of HKD 260,393,000 for the six months ended June 30, 2024, compared to HKD 225,750,000 for the same period in 2023, reflecting an increase of approximately 15.4% [21] - Operating expenses decreased significantly by 12% during the period, contributing to profit growth, with the operating expense to revenue ratio lower than industry peers [42] Strategic Initiatives - The company completed a special interim dividend distribution by physically distributing all shares held in KEX Express Thailand, terminating certain Asian express businesses, which are classified as discontinued operations [8] - The company is committed to ongoing research and development of new technologies to enhance its logistics services and improve operational efficiency [17] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth [14] - The company plans to expand its market presence in Asia and the Americas, leveraging its logistics capabilities to capture growth opportunities in these regions [17] - The company is exploring the feasibility of installing more solar panels at its global operations to enhance renewable energy usage [41] - The company is enhancing data collection and management in preparation for new climate disclosure regulations issued by the stock exchange [41] Workforce and Employment - The workforce decreased to approximately 18,600 employees as of June 30, 2024, down from about 33,100 employees on December 31, 2023, primarily due to the divestment of KEX Express Thailand [44] Future Outlook - The company maintains an optimistic outlook for fiscal year 2024, expecting an increase in international freight business performance in the second half, driven by sustained demand in maritime transport and strong air freight performance in Q4 2024 [42]