Linklogis Inc. (09959.HK), a leading provider of supply chain finance technology, has released its 2024 interim financial results, demonstrating substantial growth and strategic advancements. The company reported a total transaction volume of RMB165.9 billion in the first half of 2024, marking a 17% year-over-year increase. Total revenue climbed to RMB410 million, up 5.6% from the previous year, with a gross profit margin of 70.9%. Additionally, the company boasts cash reserves of RMB5.1 billion.
Linklogis has been instrumental in providing digital financial services to over 290,000 small and medium-sized enterprises (SMEs). The company's financial stability is underscored by cash dividends amounting to HK$215 million and share repurchases totaling HK$278 million distributed this year.
A notable development is Linklogis' letter of intent to acquire Shenzhen Bytter Technology Co., Ltd., a prominent treasury management solutions provider. This acquisition aims to integrate the strengths of both companies in treasury management and supply chain finance technology, enhancing Linklogis' product portfolio and core competitiveness. Bytter brings over 20 years of industry experience and a comprehensive treasury management product system to the table.
In terms of market share, Linklogis continues to lead the industry with a 20.9% market share, maintaining its top position among third-party supply chain finance technology solutions providers in China for the fourth consecutive year. The company has expanded its customer base to 856 anchor enterprises and financial institutions, covering all 31 industries listed in the SWS Industry Classification. Notably, 13 industries contributed more than RMB2 billion in supply chain asset transactions in the first half of 2024.
Linklogis has also made significant strides in product and scenario innovation, exploring the "de-anchored" business model for supply chain finance. The company has launched comprehensive supply chain finance technology solutions, including order financing and distributor financing, assisting 17 state-owned and leading private enterprises in building supply chain finance technology platforms.
On the international front, Linklogis' Cross-border Cloud processed RMB9.3 billion in supply chain assets, a 63% year-over-year increase. The company is actively exploring innovative business models in cross-border and international supply chain finance, aiding Chinese enterprises in expanding their global supply chain industry-finance systems.
Technological innovation remains a cornerstone of Linklogis' strategy. The company has invested RMB178 million in research and development, employing 536 R&D staff. Linklogis has developed "AI Agent," an AI-based platform for supply chain document verification, which has been successfully deployed in numerous financial institutions, earning the "Best AI Technology" award from The Asian Banker in 2024.
Furthermore, Linklogis is accelerating the development of its large language model (LLM) platform, LDP-GPT, to enhance various financial institution operations, risk control, and customer acquisition processes. This initiative aims to promote the implementation of more LLM commercial applications in financial institutions.
Linklogis is also committed to sustainable supply chain finance. In the first half of the year, the company processed RMB15 billion in transactions related to sustainable supply chains, a 241% increase from the previous year. Its ESG efforts have been recognized with several awards, including the "Best China ESG Solution Award" from The Asset.
Looking ahead, Charles Song, founder, chairman, and CEO of Linklogis, emphasized the company's focus on sustainable revenue growth, technological innovation, and shareholder value. The company plans to optimize internal resources, improve operational efficiency, and continue its commitment to ESG principles to create long-term value for its stakeholders.
