Linklogis Inc. (09959.HK) has released its third-quarter business update for 2024, revealing unprecedented growth and record-breaking figures that underscore the company's strengthening position in the supply chain finance technology sector. The total transaction volume processed by Linklogis' technology solutions reached RMB105 billion, marking an 18% year-over-year increase and surpassing the RMB100 billion threshold for the first time in a single quarter.
The company's core growth driver, the Multi-tier Transfer Cloud, demonstrated robust performance by processing supply chain assets totaling RMB47.7 billion, reflecting a 29% year-over-year growth. Perhaps most notably, the ABS Cloud segment achieved an extraordinary 325% growth, processing RMB22 billion in transaction volume, despite challenging market conditions. This remarkable growth in the ABS Cloud was attributed to the successful launch of new products designed to meet the increasing demand for diversified asset allocation in the current low-interest-rate environment.
Linklogis' strategic focus on high-quality development and efficiency enhancement in its core business has yielded positive results. The company reported year-on-year growth in revenue and income from principal activities, accompanied by a significant improvement in gross profit margin. This financial performance comes alongside a concerted effort to diversify the customer base and optimize the business structure by reducing low-margin product lines.
The third quarter saw Linklogis secure important contracts and partnerships, including winning bids for the development of supply chain finance service platforms for major state-owned enterprises. The company also expanded its collaboration with large enterprises and financial institutions, launching the first batch of multi-tier transfer businesses. These developments indicate Linklogis' growing influence and acceptance within the industry.
Customer acquisition remained a key focus, with Linklogis adding 103 new customers and 184 partners in the third quarter. The company's total customer base now stands at 959, with 2,270 partners, including 1,917 anchor enterprises and 353 financial institutions. The impressive 96% customer retention rate underscores the value and reliability of Linklogis' services.
In a strategic move to enhance its treasury development capabilities, Linklogis announced the acquisition of a controlling stake in Shenzhen Bytter Technology Co., Ltd. This acquisition is expected to create synergies by integrating Bytter's strengths in fund management with Linklogis' expertise in supply chain finance technology. The combined entity aims to support enterprises in building world-class financial management platforms, marking a significant step towards developing smart industry-finance treasury solutions.
The implications of Linklogis' Q3 results and strategic initiatives are far-reaching for the financial technology sector. The company's continued growth and innovation in supply chain finance technology could lead to increased efficiency and liquidity in global supply chains. For businesses, especially small and medium-sized enterprises, this could mean improved access to working capital and more flexible financing options.
Furthermore, the success of the ABS Cloud segment highlights a growing trend towards securitization in supply chain finance, potentially opening new avenues for investors seeking diversified asset allocation strategies. This could have broader implications for the asset management industry and how financial institutions approach supply chain-related investments.
Linklogis' expansion and the acquisition of Bytter also signal a trend towards consolidation and vertical integration in the fintech sector. This move could spark similar strategic acquisitions among competitors, potentially reshaping the competitive landscape of supply chain finance technology.
As Linklogis continues to focus on sustainable high-growth core businesses and technological innovation, its impact on the digital transformation of supply chain finance is likely to grow. The company's success could serve as a model for other fintech firms and potentially influence regulatory approaches to supply chain finance technology globally.
In conclusion, Linklogis' record-breaking Q3 results and strategic initiatives not only demonstrate the company's strong performance but also highlight the growing importance and potential of supply chain finance technology in the broader financial services ecosystem. As the company moves forward, its actions and innovations will likely continue to shape the future of financial
