Linklogis Starts First Quarter with Strong Performance, with the Transaction Volume Reaching RMB96.2 Billion

On April 23, 2024, Linklogis Inc. (09959.HK, “Linklogis”), a leading supply chain finance technology solution provider in China, released its first-quarter results for 2024. The operational and financial indicators of the company have shown signs of comprehensive recovery and improvement, achieving a strong start to the year. The total transaction volume processed by its technology solutions in the first quarter reached RMB96.2 billion, a year-over-year increase of 45%, reaching a historical high for a single quarter. The number of customers continued to grow rapidly, with an addition of 47 new customers and 122 new partners, bringing the total number of partners to 1,928. 


In terms of financial performance, Linklogis achieved significant year-over-year increases in its revenue and income from principal activities in the first quarter. As of April 22, 2024, the cash reserves of Linklogis reached RMB5.2 billion, an increase of RMB400 million compared to December 31, 2023. 


Additionally, due to ample financial resources, Linklogis reaffirmed its commitment to implementing a share repurchase plan of up to $100 million, continuing to enhance shareholder returns. Previously, due to the better-than-expected performance, dividends, and repurchase plans, Linklogis experienced a surge of over 35% in its stock price after releasing its 2023 annual results, attracting significant market attention.


Transaction Volume Reaches RMB96.2 Billion, with Strong Growth in Core Business Sectors

In 2024, Linklogis continued to focus on the development of its two core sectorsAnchor Cloud and FI Cloud, while simultaneously pursuing stable growth and high-quality development. Regarding the Multi-tier Transfer Cloud within the Anchor Cloud, it continued to maintain rapid growth, processing a total volume of supply chain assets amounting to RMB47.9 billion in the first quarter, a year-over-year increase of 94%.


Linklogis accelerated the replacement of old growth drivers with new ones. Based on its asset-backed securitization and multi-tier transfer products, Linklogis drove the digitization and intelligence of supply chain financial service platform through the output of technological capabilities and service experiences, promoting the healthy, stable, and orderly development of the industry chain of supply chain finance. In the first quarter, Linklogis cooperated with Dongfeng Motor Corporation and helped it build a supply chain finance service platform, which successfully issued the first digital accounts receivable certificate to suppliers. Linklogis also assisted in the establishment of “Liugong Advanced Manufacturing Accounts Receivable Asset Support Plan Phase 1″. Besides, the supply chain finance platform jointly built by Linklogis and Hubei United Investment Group successfully landed the first supply chain finance ABS business “CITIC Securities – Hubei United Investment Supply Chain Asset Support Plan Phase 1. Linklogis also landed the first business of the localization project of China Ordins Group’s supply chain finance platformIn addition, Linklogis helped the “Sinomach E-Chain” under China National Machinery Industry Corporation (Sinomach) and the Supplier Relationship Management (SRM) System under SUMEC Group Corporation officially complete the interconnection of data and business, achieving trusted information exchange and realizing functions such as automatic opening, circulation, and financing of digital accounts receivable certificate.


Linklogis added 47 customers and 122 partners in the first quarter, bringing the total number of customers to 776 and partners to 1,928. New high-quality anchor enterprise customers include Jiangxi Youse Construction, Honghua Group, Gold Hongye Paper, MLILY, and Wuyang Construction Group. New financial institution partners include Jining Bank, Bohai Bank, and Weifang BankWith the trust and continuous use of Linklogis products, the company’s supply chain financial technology solutions have maintained a customer retention rate of 96%.


International Business Advances Global Presence, with Livestreaming E-commerce Becoming a New Source of Growth

In recent years, the rise of livestreaming e-commerce and cross-border e-commerce has changed the business models of traditional industries. Linklogis seizes the development opportunities of digital economy and livestreaming industry, grasping new sources for economic growth. In the first quarter, Linklogis facilitated small live-streaming merchants on Douyin, Kuaishou, PDD and other platforms in obtaining financing, reached cooperation with 5 new financial institution partners, bringing the total number of financial institution partners to 13. 


Since the beginning of the year, Linklogis has achieved frequent successes in its livestreaming e-commerce business. Its e-commerce supply chain products was launched on the Data Trading Platform of Shenzhen Data Exchange, indicating that Linklogis’ supply chain service products have been included in the data trading product system of Shenzhen Data Exchange. Linklogis has also reached comprehensive and strategic cooperation with financial institutions including Beijing Zhongguancun Bank and Meizhou Hakka Bank in livestreaming e-commerce supply chain finance, utilizing technological innovation to help SMEs solve financing difficulties.


With the recovery of demand from merchants on cross-border e-commerce platforms and tourism platforms, Linklogis seizes the opportunity to accelerate its “going global” strategy, driving an increase in business scale. Currently, Linklogis has expanded its market and achieved breakthroughs in cross-border business in multiple countries and regions overseas, becoming the only domestic supply chain financtechnology enterprise with a global presence. With respect to the platform-based business, Linklogis has been collaborating with global platforms including Infor, Amazon, and Shopee to provide comprehensive digital cross-border trade financing services for SME merchants on the platforms. 


Linklogis partnered with Shopee, a leading e-commerce platform in Southeast Asia, in the field of cross-border supply chain finance. The two sides combined advanced technologies such as big data and blockchain with mature and rich service experience, and launched the first phase of “Advanced Payment” financing product, accelerating the capital turnover of cross-border e-commerce merchants and shortening the order repayment cycle. 


In serving Chinese enterprises, Linklogis seized the wave of Chinese companies going overseas and assisted large domestic enterprises such as OPPO in in building and expanding global supply chain financing systems, expanding its supply chain finance platform to cross-border supply chain financing scenarios, and facilitating the digital intelligence transformation of its overseas supply chain system. Moreover, in 2024, Linklogis’ international business team broke into the Vietnamese and Bangladeshi markets by establishing local teams in addition to its existing offices in Hong Kong and Singapore.


Business Momentum Shows Signs of Recovery and Improvementand Dividends and Repurchases Enhance Shareholder Returns 

In recent years, with abundant use cases of the supply chain industry, the rapid development of digital technology, and the continuous advancement of financial technology, Linklogis seeks change in opportunities, pursues vitality in development, fully integrates with the industry, deeply explores the industry, and reshapes the foundation of supply chain finance, thus helping stabilize the industry chain base and strengthen the resilience of the real economy. As a leading enterprise in the supply chain finance technology industry, Linklogis is also striving to become a pioneer and promoter of the new round of productivity revolution, continuously promoting economic growth and technological progress. Since the beginning of the year, Linklogis has participated in national key research and development program under “14th Five-Year Plan”, won “Best Sustainable Financial Solution” award from Standard Chartered Bank, was selected as KPMG China Fintech Double 50 Enterprises, and won “Annual Outstanding Financial Technology” award for supporting high-quality development in the financial sector of Shenzhen. These continuous achievements demonstrate the company’s solid start. 


In the 2023 annual results released on March 26th, Linklogis announced a shareholder return plan, intending to continuously enhance capital returns to shareholders through cash dividends and share repurchases. The latest cash reserves of Linklogis have reached RMB5.2 billion, with the management reaffirming their commitment to enhancing shareholder returns through the implementation of a share repurchase plan of up to $100 million.

, Linklogis Starts First Quarter with Strong Performance, with the Transaction Volume Reaching RMB96.2 Billion

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