Wanlin Logistics(603117)2024-11-05 07:33Business Overview - Jiangsu Wanlin Modern Logistics Co., Ltd. focuses on comprehensive logistics services for the imported timber supply chain, leveraging its industry position to provide services such as import agency, port handling, warehousing, freight forwarding, and logistics distribution [2] - The company operates a profitable terminal under its subsidiary for port handling services and utilizes its own storage yards and timber logistics distribution centers for basic logistics services [2] Operational Performance - As of September 30, 2024, the company handled a total of 9.22 million tons of cargo at its profitable terminal, a decrease of 12.71% year-on-year, with timber accounting for 114.7 million cubic meters and other bulk goods at 807.45 tons [3] - The logistics distribution volume for the first three quarters was 687,000 tons, with 209 ship agency services and 607.7 million tons of freight forwarding, all showing a decline compared to the previous year [3] - Trade agency business volume increased by 16.46% year-on-year, with 76,400 cubic meters of imported timber handled [3] Financial Performance - For the period from January to September 2024, the company reported revenue of CNY 217,667,944.66, a decrease of 29.09% year-on-year, while net profit was CNY 20,753,773.42, marking a turnaround from a loss in the previous year [4] - As of September 30, 2024, total assets amounted to CNY 1,426,816,435.52, with net assets attributable to shareholders at CNY 1,023,527,417.45 [4] Challenges and Market Conditions - The decline in trade agency business is attributed to a significant proportion of raw timber imports, which have seen negative growth in recent years, and a shift from raw timber exports to higher value-added sawn timber exports [4] - The domestic real estate market's downturn has led to increased volatility in the timber industry, resulting in reduced demand and operational difficulties for downstream enterprises [4] - Following risk warnings on stock trading, the company has tightened credit management and reduced business volume while ensuring financial safety [4] Future Directions - The company plans to stabilize port handling services and optimize basic logistics operations, with a gradual increase in timber agency business expected after restoring bank credit [6] - Wanlin Chaoyue (Shanghai) Brand Development Co., Ltd. was established on July 4, 2024, as a wholly-owned subsidiary to explore new business directions [6] Legal Matters - The company is currently involved in arbitration regarding a dispute with Shanghai Mindai Industrial Co., Ltd., with the arbitration amount set at CNY 48 million [8] - Ongoing legal proceedings against former controlling shareholder Huang Baozhong and Shanghai Huirui Industrial Co., Ltd. are still pending [9] Shareholder Engagement - The company has conducted share buybacks and cancellations, with senior management increasing their holdings to demonstrate confidence in the company's long-term value [7]