乐舱物流(02490) - 2024 - 中期财报

Company Information Company Profile LeCang Logistics, established in 2004, offers integrated cross-border ocean freight logistics services in China, including warehousing and customs, and was listed on the Hong Kong Stock Exchange on September 25, 2023 - The company's core business is providing integrated cross-border ocean freight logistics services, supplemented by vessel chartering to enhance resources and capabilities[15] - The company was listed on the Main Board of the Hong Kong Stock Exchange on September 25, 2023, with stock code 2490[15] Financial and Operational Highlights In the first half of 2024, the company's revenue increased by 15.0% year-on-year, but profit significantly declined by 87.8%, while cross-border logistics container volume grew by 18.3%, indicating a divergence between business expansion and profitability Key Financial and Operational Data for H1 2024 | Indicator | H1 2023 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue (RMB Million) | 655.8 | 754.2 | +15.0% | | Profit (RMB Million) | 105.1 | 12.8 | -87.8% | | Earnings Per Share (RMB) | 0.41 | 0.03 | -92.7% | | Cross-border Logistics Container Volume (TEUs) | 118,656 | 140,355 | +18.3% | Management Discussion and Analysis Business Review During the reporting period, the company operated two main businesses: cross-border logistics services and vessel chartering; cross-border logistics saw increases in both volume and price, with new self-operated and overseas warehousing services launched, while vessel chartering revenue significantly decreased due to a sharp decline in market charter rates - Cross-border logistics service volume increased from 118,656 TEUs to 138,335 TEUs, with the average price rising from approximately RMB 3,985.3/TEU to RMB 4,129.8/TEU[20] - In June 2024, the company capitalized on rising market freight rates by launching self-operated cross-border logistics services, contributing approximately 12.3% of the segment's revenue[20] - The average daily charter rate for vessel chartering services significantly decreased from approximately RMB 179,000 in the prior period to RMB 82,000 this year, leading to a sharp decline in revenue from this business[21] Business Outlook Management maintains a cautious outlook for the second half of 2024, anticipating that the traditional peak season will improve cross-border ocean freight performance, while recovering market charter rates are expected to boost vessel chartering service results - The second half of the year is expected to see traditional peak seasons for Europe and US routes due to Christmas and New Year holiday stocking, with the Asian route peak in the fourth quarter, which should improve cross-border ocean freight performance[25] - With the general increase in market charter rates in 2024, vessel chartering service performance is expected to improve in the second half of the year[25] Financial Review In the first half of 2024, total revenue increased by 15.0% to RMB 754 million, driven by cross-border logistics; however, gross profit and net profit sharply declined by 54.1% and 87.8% year-on-year, respectively, due to a significant drop in vessel chartering gross margin and increased expenses Revenue Total revenue increased by 15.0% year-on-year to RMB 754 million, primarily driven by a 38.3% rise in cross-border logistics service revenue due to increased volume, average prices, and new overseas warehousing and China-Africa breakbulk shipping, while vessel chartering revenue sharply declined by 73.5% due to lower rates Revenue Breakdown by Business Segment (For the six months ended June 30) | Business Segment | 2024 (RMB Thousand) | 2023 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Cross-border Logistics Services | 689,020 | 498,196 | +38.3% | | Vessel Chartering Services | 40,343 | 152,230 | -73.5% | | Others | 24,875 | 5,417 | +359.2% | | Total | 754,238 | 655,843 | +15.0% | Cost of Sales Cost of sales increased by 35.2% year-on-year to RMB 686 million, primarily due to higher fuel costs, vessel chartering costs, port charges, and freight expenses related to cross-border logistics services - Cost of sales increased from RMB 507.5 million to RMB 686.1 million, a year-on-year growth of 35.2%, mainly due to increased costs for cross-border logistics services[28] Gross Profit and Gross Margin Gross profit significantly decreased by 54.1% year-on-year to RMB 68.1 million, with gross margin falling from 22.6% to 9.0%, primarily due to the high-margin vessel chartering service's average daily charter rate dropping from RMB 179,000 to RMB 82,000, severely eroding profitability Gross Profit and Gross Margin Changes | Indicator | H1 2023 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit (RMB Million) | 148.3 | 68.1 | -54.1% | | Gross Margin | 22.6% | 9.0% | -13.6pp | Other Income and Gains Other income and gains increased by 354.5% year-on-year to RMB 5 million, primarily driven by higher interest income - Other income and gains increased from RMB 1.1 million to RMB 5 million, mainly due to higher interest income[30] Selling and Distribution Expenses Selling and distribution expenses remained relatively stable, increasing slightly from RMB 8.3 million in the prior period to RMB 9.1 million Administrative Expenses Administrative expenses significantly increased by 57.0% year-on-year to RMB 45.7 million, primarily due to higher consulting fees, salaries, and welfare expenses - Administrative expenses increased from RMB 29.1 million to RMB 45.7 million, a year-on-year growth of 57.0%[33] Other Expenses Other expenses increased by 152.4% year-on-year to RMB 5.3 million, primarily due to higher losses on disposal of non-current assets related to container sales Finance Costs Finance costs increased from RMB 3.3 million to RMB 4.2 million, mainly due to higher interest expenses on lease liabilities from warehouse rentals - The increase in finance costs was primarily due to higher interest expenses on lease liabilities[35] Net Impairment Losses on Financial Assets The period recorded a reversal of impairment losses on financial assets of RMB 4.2 million, compared to a loss of RMB 3.6 million in the prior period, mainly due to the recovery of long-outstanding trade receivables Profit Before Tax and Profit for the Period Considering the above factors, the company's profit before tax decreased from RMB 103 million to RMB 13 million, a year-on-year reduction of 87.4%; profit for the period decreased from RMB 105 million to RMB 12.8 million, a year-on-year reduction of 87.8% Profit Performance | Indicator | H1 2023 (RMB Million) | H1 2024 (RMB Million) | Change | | :--- | :--- | :--- | :--- | | Profit Before Tax | 103.1 | 13.0 | -87.4% | | Profit for the Period | 105.1 | 12.8 | -87.8% | Liquidity, Financial and Capital Resources As of June 30, 2024, the company maintained a sound financial position, with net current assets increasing to RMB 177 million, cash and bank balances at RMB 182 million, and total borrowings decreasing from RMB 51.3 million to RMB 22.8 million, indicating deleveraging efforts Key Financial Position Indicators (As of June 30, 2024) | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net Current Assets (RMB Million) | 177.4 | 139.9 | | Cash and Bank Balances (RMB Million) | 181.8 | 207.9 | | Total Borrowings (RMB Million) | 22.8 | 51.3 | - As of June 30, 2024, the company had pledged container vessels with a carrying amount of RMB 33.4 million to secure borrowings of RMB 12.8 million[49] Financial Risks The company faces key financial risks including interest rate, foreign currency, credit, and liquidity risks, managed through a conservative strategy that avoids derivative instruments for hedging and relies on close monitoring - The company's primary risks include interest rate, foreign currency, credit, and liquidity risks, managed with a conservative strategy that does not use derivatives for hedging[51] Key Financial Ratios The company's current ratio remained stable at 1.5 times, while the gearing ratio significantly decreased from 4.4% to 1.9%, primarily due to the settlement of certain interest-bearing borrowings during the period, indicating an improved capital structure Key Financial Ratios | Ratio | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Current Ratio (times) | 1.5 | 1.5 | | Gearing Ratio | 1.9% | 4.4% | Use of Proceeds from Listing Net proceeds from the listing amounted to approximately HKD 95.1 million; as of June 30, 2024, approximately HKD 48.4 million had been utilized for logistics facilities, software systems, and strategic investments, with approximately HKD 36.2 million remaining unutilized Summary of Use of Proceeds from Listing (HKD Million) | Category of Use | Planned Net Amount | Amount Utilized | Amount Unutilized | | :--- | :--- | :--- | :--- | | Establishment of Logistics Facilities, etc. | 47.4 | 26.6 | 20.8 | | Expansion of Business Coverage | 3.8 | 3.8 | 0 | | Digital Technology Upgrades | 6.7 | 1.5 | 5.2 | | Strategic Investments/Acquisitions | 19.0 | 15.5 | 3.5 | | Others and Working Capital | 8.2 | 1.0 | 7.2 | | Total | 85.1 | 48.4 | 36.7 | Employees and Remuneration Policy As of June 30, 2024, the Group had 331 full-time employees, with staff costs of RMB 30.1 million for the first half of the year; the company offers competitive remuneration and provides induction and on-the-job training - As of June 30, 2024, the Group had 331 full-time employees, with staff costs of RMB 30.1 million for the first half of the year[69] Subsequent Events Subsequent to the reporting period, the company engaged in significant asset transactions, agreeing in July 2024 to sell two vessels under construction for USD 133.3 million, and subsequently entering a framework agreement in September to acquire two additional vessels, indicating active adjustments to its fleet asset portfolio - In July 2024, the Group agreed to sell two vessels under construction for USD 133.3 million, with the buyer assuming the rights and obligations under the shipbuilding agreements[70] - On September 2, 2024, the Group entered into an agreement to acquire two vessels, subject to shareholder approval[70] Corporate Governance and Other Information The company is committed to high standards of corporate governance, complying with all applicable code provisions during the reporting period, except for the chairman and CEO being the same person (Mr. Xu Xin); the Board does not recommend an interim dividend, and the Audit Committee has reviewed these interim results - Mr. Xu Xin serves as both Chairman of the Board and Chief Executive Officer, a dual role the Board believes enhances decision-making efficiency, with power balance ensured by the entire Board[72] - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[82] - The Audit Committee has reviewed the Group's unaudited interim results and concurred with management[84] Interim Condensed Consolidated Financial Statements Interim Condensed Consolidated Statement of Profit or Loss The statement of profit or loss shows that despite revenue increasing from RMB 656 million to RMB 754 million, gross profit decreased from RMB 148 million to RMB 68.1 million, and profit for the period significantly dropped from RMB 105 million to RMB 12.8 million Summary of Interim Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Item (RMB Thousand) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 754,238 | 655,843 | | Gross Profit | 68,104 | 148,334 | | Profit Before Tax | 13,005 | 103,119 | | Profit for the Period | 12,806 | 105,055 | | Profit Attributable to Owners of the Parent | 9,393 | 104,126 | | Basic Earnings Per Share (RMB) | 0.03 | 0.41 | Interim Condensed Consolidated Statement of Comprehensive Income The statement of comprehensive income shows profit for the period at RMB 12.8 million, with other comprehensive income (primarily exchange differences) at RMB 9.44 million, resulting in a total comprehensive income of RMB 22.24 million for the period, significantly lower than RMB 118 million in the prior period Summary of Interim Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Item (RMB Thousand) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Profit for the Period | 12,806 | 105,055 | | Other Comprehensive Income, Net of Tax | 9,436 | 13,206 | | Total Comprehensive Income for the Period | 22,242 | 118,261 | Interim Condensed Consolidated Statement of Financial Position The statement of financial position as of June 30, 2024, shows total assets of RMB 1.577 billion, total liabilities of RMB 389 million, and total equity of RMB 1.188 billion, with net current assets at RMB 177 million, indicating a stable asset structure Summary of Interim Condensed Consolidated Statement of Financial Position | Item (RMB Thousand) | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 1,075,012 | 1,026,813 | | Total Current Assets | 502,462 | 418,674 | | Total Current Liabilities | 325,106 | 278,732 | | Total Non-current Liabilities | 63,980 | 2,352 | | Net Assets | 1,188,388 | 1,164,403 | Interim Condensed Consolidated Statement of Changes in Equity The statement of changes in equity shows total equity increased from RMB 1.164 billion at the beginning of the period to RMB 1.188 billion at the end, primarily due to comprehensive income for the period and contributions from non-controlling interests - Equity attributable to owners of the parent increased from RMB 1.135 billion at the beginning of the year to RMB 1.151 billion, primarily contributed by total comprehensive income of RMB 16.24 million for the period[89] Interim Condensed Consolidated Statement of Cash Flows The statement of cash flows shows a net cash outflow from operating activities of RMB 8.09 million (compared to a net inflow of RMB 69.89 million in the prior period), mainly due to working capital changes; investing activities generated a net inflow of RMB 5.64 million, and financing activities resulted in a net outflow of RMB 49.7 million, with cash and cash equivalents at period-end totaling RMB 179 million Summary of Interim Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Item (RMB Thousand) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | (8,093) | 69,892 | | Net Cash Flows from Investing Activities | 5,637 | (236,338) | | Net Cash Flows Used in Financing Activities | (49,698) | (25,117) | | Net Decrease in Cash and Cash Equivalents | (52,154) | (191,563) | | Cash and Cash Equivalents at End of Period | 179,172 | 153,675 | Notes to the Interim Condensed Consolidated Financial Information 3. Operating Segment Information Management monitors and allocates resources for the Group's business as a single operating segment; geographically, Greater China is the primary revenue source, contributing approximately 92.5% of revenue, with no single customer accounting for over 10% of revenue during the reporting period Revenue from External Customers by Geographical Area (For the six months ended June 30) | Geographical Area | 2024 (RMB Thousand) | 2023 (RMB Thousand) | | :--- | :--- | :--- | | Greater China | 697,642 | 500,918 | | Others | 56,596 | 154,925 | | Total | 754,238 | 655,843 | 4. Revenue, Other Income and Gains Of the total revenue of RMB 754 million, RMB 714 million was from contracts with customers and RMB 40.34 million from vessel chartering; customer contract revenue primarily comprised RMB 676 million from cross-border logistics services, with an additional RMB 13.39 million from new overseas warehousing services Disaggregation of Revenue from Contracts with Customers (For the six months ended June 30) | Type of Goods or Services (RMB Thousand) | 2024 | 2023 | | :--- | :--- | :--- | | Cross-border Logistics Services | 675,633 | 498,196 | | Sales of Goods | 24,875 | 5,417 | | Overseas Warehousing | 13,387 | – | | Total | 713,895 | 503,613 | 9. Earnings Per Share Attributable to Owners of the Parent Basic earnings per share, calculated based on profit attributable to owners of the parent of RMB 9.393 million and a weighted average of 286 million ordinary shares outstanding, was RMB 0.03, a significant decrease from RMB 0.41 in the prior period Basic Earnings Per Share Calculation | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit Attributable (RMB Thousand) | 9,393 | 104,126 | | Weighted Average Number of Ordinary Shares | 286,269,156 | 255,543,156 | | Basic Earnings Per Share (RMB) | 0.03 | 0.41 | 11. Trade Receivables Total trade receivables increased from RMB 89.26 million to RMB 156 million; the aging analysis shows receivables within 1 month accounted for the largest portion at RMB 120 million, notably, receivables over 1 year decreased from RMB 23.9 million to zero Aging Analysis of Trade Receivables | Aging | June 30, 2024 (RMB Thousand) | December 31, 2023 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 month | 120,269 | 41,509 | | 1 to 3 months | 26,537 | 14,595 | | 3 to 6 months | 5,161 | 7,857 | | 6 to 12 months | 3,631 | 1,395 | | Over 1 year | – | 23,904 | | Total | 155,598 | 89,260 | 15. Commitments As of the end of the reporting period, the Group had significant capital commitments for the purchase of container vessels, amounting to approximately RMB 1.402 billion, a slight increase from the beginning of the year - As of June 30, 2024, the Group had contracted but unprovided capital commitments for container vessels totaling RMB 1.402 billion[117] 18. Events After the Reporting Period Subsequent to the reporting period, the company agreed in July 2024 to sell two vessels under construction for USD 133.3 million and in September to acquire two additional vessels; these transactions represent significant adjustments to the Group's asset portfolio and will materially impact future financial position - In July 2024, the Group entered into an agreement to sell two vessels under construction for USD 133.3 million, with the buyer assuming the rights and obligations under the shipbuilding agreements[129] - In September 2024, the Group entered into an agreement to acquire two new vessels, demonstrating its ongoing optimization of the fleet asset portfolio[129]