EQS-News : CN Logistics (2130) Announces Interim Results, revenue Increased by 30.1%, profit before taxation surged by 36.5%; further tapping into the E-commerce market

EQS-News / 31/08/2021 / 12:32 UTC+8

?For immediate release? 30 August 2021

CN Logistics International Holdings Limited

(Incorporated in the Cayman Islands with limited liability)

(Stock code:2130.HK)

Announces 2021 Interim Results

Revenue Increased by 30.1% to Approximately HKUSD1,017.2 Million

Profit Before Taxation Surged by 36.5% to HKUSD 66.7 Million

Further Tapping into the E-commerce Market Through the Launch of its Self-proprietary Platform For Wine Products in China

Financial Highlights

 HKUSD million                         Six months ended 30 June 
                                     2020   2021     Change 
Revenue                              782.1  1,017.2  +30.1% 
Gross Profit                         171.5  214.1    +24.9% 
Profit before taxation               48.9   66.7     +36.5% 
Gross profit margin                  21.9%  21.0%    -0.9p.p. 
Proposed dividend per ordinary share N/A    9        N/A 
(HK Cents) 
Dividend payout ratio                N/A    64.3%    N/A 

(30 August 2021 - Hong Kong) CN Logistics International Holdings Limited ("CN Logistics", and together with its subsidiaries, the "Group;" stock code: 2130) is pleased to announce the unaudited results for the six months ended 30 June 2021 (the "Period").

During the first half of 2021, the world was recovering from the impact brought by COVID-19, the Group has seized the opportunity and made significant achievements. The Group was appointed as the exclusive logistic service provider for over 30 internationally renowned high-end consumer brands and cosmetics brands in the first China International Consumer Products Expo, allowing the Group to explore new business opportunities with brand customers. Although the outbreak of COVID-19 pandemic has casted shadow to the global economy, with well-established, sound and long-term relationship with airlines, the Group was able to secure cargo space, for the export of goods with higher fees due to the limited supply of cargo space, especially in Italy. With the Group's strategic layout in Asia and Europe, the Group was able to satisfy the needs of existing clients, especially those high-end fashion and luxury brands, and further expand its customer base by sourcing new sizeable customers from different sectors.

During the Period, the revenue increased by approximately 30.1% to approximately HKUSD1,017.2 million (1H2020: HKUSD782.1 million). Gross profit amounted to approximately HKUSD214.1 million (1H2020: HKUSD171.5 million), representing an increase of approximately 24.9%. The profit before taxation was approximately HKUSD66.7 million, representing a period-on-period increase of approximately 36.5%. The Board recommended the payment of an interim dividend of 9 cents per ordinary share in respect of the Period.

Air Freight Forwarding Services - 58.3% of total revenue

The Freight forwarding services include arranging for consignment upon receipt of booking instructions from customers, cargo pick up, obtaining cargo space, preparation of freight documentation, arranging for customs clearance and cargo handling at origin and destination as well as other related logistics services such as supporting transportation for freight forwarding purposes. In addition, we pride ourselves as one of the few specialists in providing freight forwarding services for the export of wine from France and the United Kingdom to Hong Kong.

During the Period, the air freight forwarding business recorded revenue of approximately HKUSD593.2 million (1H2020: HKUSD521.4 million), representing an increase of approximately 13.8%. Gross profit of the segment also increased from HKUSD104.4 million in the corresponding period of 2020 to approximately HKUSD129.1 million during the Period, representing a period-on-period increase of approximately 23.7%. The increase was primarily due to the demand for air freight forwarding services for high-end fashion in Europe and Asia (including the PRC) increased drastically and the freight rates increased due to limited supply of cargo space worldwide under COVID-19 pandemic and the Group's ability to obtain cargo space from airlines to satisfy its customers demand.

Distribution and Logistics Services - 18.9% of total revenue

The Group is one of the earliest in the PRC and Hong Kong to provide comprehensive and customized business to business (B2B) distribution and logistics services to meet its customers' warehousing and logistics needs with cost-effective supply chain solutions. The Group is also one of the earliest in the PRC to establish its own semi-automated distribution centre to provide tailor-made logistics solutions for high-end fashion products.

During the Period, the revenue from this segment was approximately HKUSD192.5 million (1H2020: HKUSD137.2 million), representing an increase of approximately 40.3%. Gross profit was approximately HKUSD38.2 million (1H2020: HKUSD30.4 million), representing a period-on-period increase of approximately 25.7%. The increase was due to the ability to source additional fashion logistics' orders due to the handling capacity of our Group increased significantly after the completion of the expansion of the highly automatic distribution centre in Shanghai in February 2021.

Ocean Freight Forwarding Services - 22.8% of total revenue

The holistic logistics solutions of the Group also include the provision of ocean freight forwarding services mainly to its air freight forwarding services customers and other customers in Italy and Taiwan when they require the Group to ship some of their products by sea incidentally or on a stand-alone basis.

During the Period, the revenue from this segment was approximately HKUSD231.5 million (1H2020: HKUSD123.5 million), representing an increase of approximately 87.4%. Gross profit was approximately HKUSD46.8 million (1H2020: HKUSD36.7 million), representing an increase of approximately 27.5%. The increase was due to significant growth in overseas offices given the gradual recovery in global economy, in particular, the office of the Group in Italy. With the sound reputation and strong network of the Group's Italy office in European and Asian regions, it was able to source new sizeable customers from different sectors, including leading companies from tire market and tableware market and. The increase is also due to the increasing demand for cruise logistics after the recovery of economy in Europe.

Prospects

Looking into second half of 2021 and onwards, the pandemic was largely put under control and economic revival is progressing at a fast pace. Together with the mass rollout of vaccination program, the Group is generally optimistic about the recovery as a catalyst to its business development and plans to further expand its business in the following aspects:

-- To further penetrate wine-related business by foraying into e-commerce market;

-- To strengthen strategic position in Europe to capture post-COVID opportunities;

-- To further expand our Green Logistics Solutions; and

-- Actively explore business opportunities with high-end fashion and luxury brands, as well as other producttype such as watch and jewellery

Executive Director and Chief Executive Officer of CN Logistics, Mr. Ngan Tim Wing said, "we are delighted to present our first set of interim results to our valued shareholders. As a leading logistics service provider focusing on luxury and high-end fashion products, we have established a global business layout and benefited from the increasing demand for air freight forwarding services for high-end fashion in Europe and Asia. The upgrade of our highly automatic distribution centre in Shanghai was completed this February, which enables us to further tapping into the China market with improved handling capacity and efficiency. We also announced our blueprint of developing our Italy office into a European business hub through acquisitions of two of our subsidiaries. We believe such move will further enhance our handling capacity in Europe, extend our business network, and enable us to seize the huge opportunities brought by the economic recovery in the post-COVID era."

Commenting on the future development of CN Logistics, Mr. Ngan added, "In addition to the organic growth of our business, we also see the huge potentials in the e-commerce market, and the derived demand for cross-border and international freight forwarding services. Hence, we have launched our e-commerce platform for wine to target the consumers in mainland China and Hong Kong. In the meantime, we will continue to explore further business collaborations with JD Logistics, our strategic partner in China, especially on the e-commerce related logistics services. Looking ahead, the Group is ready to embrace the opportunities the industry enjoys in the next couple of years. Through executing our long-planned development strategies, we have the uttermost confidence in bringing the greatest returns to our shareholders."

- End -

About CN Logistics International Holdings Limited

Established in 1991, CN Logistics is a well-established international logistics solutions provider with core business of providing air freight forwarding services and distribution and logistics services in relation to fashion products and fine wine, primarily focusing on high-end fashion (including luxury and affordable luxury) products. According to the CIC Report, the Company ranked first in the distribution and logistics market for high-end fashion products in both the PRC and Hong Kong in 2019.

This press release is issued by DLK Advisory Limited on behalf of CN Logistics International Holdings Limited.

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31/08/2021 Dissemination of a Marketing Press Release, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. Media archive at www.todayir.com

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August 31, 2021 00:32 ET (04:32 GMT)