On April 27, 2023, Linklogis released 2022 Environmental, Social, and Governance (ESG) Report. Adhering to the ESG mission of “Technology empowers the development of sustainable supply chain finance”, Linklogis promotes sustainable development in environmental protection, social responsibility, and corporate governance, contributing to the development of the real economy and the advancement of the digital economy. In the past year, Linklogis has properly aligned with the United Nations Sustainable Development Goals, continuously improving the management of material topics, and implementing robust and effective ESG governance.
In 2022, Linklogis’ total revenue and income from principal activities reached RMB920 million, with an adjusted net profit of RMB200 million and a gross profit margin of 83.8%. The total transaction volume reached nearly RMB260 billion, and the assets of transactions Linklogis served related to sustainable supply chains reached RMB6.8 billion. Linklogis received a “low risk” rating for the first time by Sustainalytics, an international authoritative ESG rating agency under Morningstar, ranking in the top 15% within the global software and service industry and the top 18% among global companies.
Committed to Green and Low-carbon Operation, the Digital Intelligent Technology Solutions Promote Energy Conservation and Consumption Reduction
Liniklogis actively promotes the comprehensive application of green technology, implements sustainable development concepts into product and development decisions, and assists multiple customers and partners, such as Zijin Mining and Luoyang Bank, in landing supply chain finance business through digital and intelligent technology solutions, and reducing resource consumption and energy use through digital, one-stop, streamlined and safe operation throughout the entire process.
Taking Linklogis’ financial technology solution “Carbon0chain” as an example. By combining Linklogis’ Multi-tier AR Transfer Cloud product and the green sustainable finance data platform “Bee-Clean”, “Carbon0chain” effectively solves major pain points in the current green finance market, such as the difficulty for carbon footprint data to be calculated and tracked, and the lack of incentives for enterprises, especially manufacturing enterprises, to participate in the development of carbon neutrality. By applying artificial intelligence, blockchain, edge computing and privacy computing technologies independently developed by Linklogis, the Carbon0chain can realize the whole process statistics and tracking of particle data of scope 3 in the international greenhouse gas accounting system, and achieve the usability with invisibility of data.
Besides, with its efficient and advanced technological products and green service system, Linklogis enabled itself, and its customers and partners to achieve online and paperless operations, improving energy efficiency and reducing negative impacts on the environment. According to statistics, Linklogis saved approximately 3,000 tons of paper in 2022, which is equivalent to a reduction of 1,800 tons of carbon emissions or approximately 750 acres of forest.
Linklogis is committed to low-carbon and green operation, and incorporates various energy-saving and consumption reduction requirements into the workplace management. Linklogis encourages employees to commute using environmentally friendly means of transportation, reducing carbon emissions and environmental pollution.
Practicing Green Digital Inclusive Finance and Participating in the Compilation of Multiple Achievements to Lead Industry Development
As a powerful driver for the transformation of industrial structure and sustainable economic development, green inclusive finance is conducive to the formation of a win-win result between ecological environment and economic value. Linklogis collaborates with financial institutions to promote the development of green inclusive finance, serving multiple green industries and high-tech enterprises, and providing high-quality financing experiences for SMEs through customized solutions and industry-leading technology infrastructure. In 2022, the assets of transactions Linklogis served related to sustainable supply chains (including green finance, renewable energy, rural revitalization, pandemic relief, etc.) reached RMB6.8 billion, and Linklogis served more than 180,000 SMEs.
Taking the example of promoting rural revitalization, issues such as difficult financing, expensive financing, long approval cycle and slow return of capital of SMEs’ agricultural business are still prominent, and the accessibility, coverage and convenience of exclusive agricultural financial services are in urgent need to be improved. Linkloigs and Standard Chartered Bank jointly provided exclusive financing products for agricultural businesses in Sichuan Province, offering flexible, efficient and convenient technological support for its supply chain financial services according to the actual situation of all parties. The project captured the attention of the State-owned Assets Supervision and Administration Commission of Sichuan Province, and won the “Best Supply Chain Finance Solution Award” in China by The Asset.
Linklogis adheres to the policies and measures introduced by national and local governments to assist SMEs in financing. In September 2022, after the Industry and Information Technology Bureau of Nanshan District, Shenzhen issued the Notice on the Application of Commercial Factoring Support Project in Nanshan District, Linklogis immediately arranged a professional team to notify the policy one-on-one to its partner suppliers. Ultimately, 78 suppliers who cooperated with Linklogis received the financial subsidy, with an estimated amount of RMB11.77 million.
In promoting industry development and standard formulation, Linklogis was successfully selected as the first batch of data merchants of Shenzhen Data Exchange, and played a vital role in preparing and writing critical industry standards such as the Application Specifications for Privacy Computing in Financial Scenarios, the Research Report on the Application of Privacy Computing (2022), the White Paper on Cross-border Data Circulation Compliance and Technological Application, and the White Paper on Low-code Development (2022). In addition, Linklogis was invited to events such as the Greater Bay Area Tech & Innovation Summit and the 2022 GBA International Artificial Intelligence and Robotics Summit, actively leading the development of the industry.
Achieving High-level Corporate Governance and Building a Diverse, Equal, and Inclusive Workplace Environment
Linklogis pursues a high standard of corporate governance, establishes a sound corporate governance structure, risk management, internal audit and internal control system, improves the internal anti-corruption management system and policies, and ensures compliant operation. Linklogis continues to explore emerging technologies and focuses on data security and privacy protection. It strictly abides by national regulatory compliance requirements, and builds the security technology system from multiple dimensions such as information security management, information security assurance, information security certification and risk management to ensure the steady development of our customers and partners in a safe and reliable environment.
In order to maintain its industry-leading position and the competitive edge in the market, Linklogis continuously improves its level of intellectual property management and protection, and has established incentive measures to encourage and protect technological innovation. Linklogis has applied for a total of 415 patents and acquired a total of 172 copyright registrations. Besides, Linklogis continues to increase investment in research and development. In 2022, Linklogis invested RMB350 million in research and development, accounting for 38.0% of the total revenue and income. The R&D personnel accounted for 61.6% of the total workforce.
Linklogis attaches great importance to the sustainable development of the company and believes that talents are the key driving force for corporate development. Linklogis has made precise efforts in organizational structure, employee training, women’s welfare, freedom of association, and anti–discrimination, striving to create an open, equal, and inclusive workplace environment, attract versatile talents, and build a diversified talent echelon. As of the end of 2022, Linklogis had a total of 981 employees, of which 425 were female employees, accounting for 43.3% of the total workforce.
In order to help the organizations and employees gain lasting competitiveness and long-term development, Linklogis has established a three-dimensional and diversified training system based on employee needs, achieving full coverage of trainees. In 2022, the average training hours per employees reached 18.5 hours, with a training coverage rate of 100%. Linklogis has also created a path for college talents to enter workplace from universities through university-enterprise cooperation. In addition, Linklogis provides employees with a stage to display their talents and a good care mechanism, enabling them to realize their self-worth and gain a sense of belonging within the organization. In 2022, the company established “Linklogis Public Welfare” to encourage employees to actively participate in public welfare activities and make small and good deeds more powerful.
Song Qun, the founder, chairman and CEO of Linklogis, said, “Sustainable development is foundation for enterprises to make progress and develop. In the past year, facing the challenges and uncertainties, Linklogis focused on its core strategies and businesses to overcome difficulties, continuously improved and optimized our sustainable development strategies and management, fulfilled corporate social responsibility, and continuously enhanced the core competitiveness of the company through technological capabilities. Looking ahead, Linklogis will continue to pay attention to the sustainable development trends at home and abroad, continue to serve various fields of supply chain finance deeply through digital technology solutions, create long-term value for employees, shareholders and the society, and share the fruits of technological innovation.”