【For immediate release】 29 August 2022
CN Logistics International Holdings Limited
(Incorporated in the Cayman Islands with limited liability)
Announces 2022 Interim Results
Revenue Increased by 44.8% to HK$1,472.9 million
Net Profit Attributable to Equity Shareholders Surged by 45.6% to HK$ 51.2 million
Proposed Interim Dividend of HK$0.13 with Payout Ratio Reaching 68.8%
（29 August 2022 – Hong Kong） CN Logistics International Holdings Limited (“CN Logistics”, or “the Company” and together with its subsidiaries, the “Group;” stock code: 2130) is pleased to announce its unaudited consolidated interim results for the six months ended 30 June 2022 (the “Period”).
During the first half of the year, the pandemic continued to impact adversely on the global supply chain and the logistics industry, the Group hence faced unprecedented challenges in the provision of freight forwarding services. However, supported by the extensive global network and long-standing relationships with airlines and carriers, the Group was able to secure cargo spaces and met the needs of its brand customers in a challenging and volatile business environment. During the Period, the Group's European operations were able to ride on the economic recovery in Europe and demonstrated greater synergies following the consolidation and optimal use of business resources, offsetting the drawbacks of the prevailing pandemic on the Group’s freight forwarding business in Shanghai and Hong Kong.
During the Period, the Group actively expanded its business footprint and tapped into new verticals. The Group completed the acquisition of Allport Cruise Group in March this year to expand its presence to the USA and enlarged its customer portfolio by offering freight forwarding services to cruise operators primarily located in the USA, in order to capture the opportunities brought by the recovery of global tourism; In May, the Group launched CNShip4Shop (CNShip4Shop.com), a brand new eCommerce platform, which leverages the Group's global network and extensive experience in serving brand customers to provide one-stop international logistics solutions to consumers in 12 regions in Asia, expanding its business scope from B2B to B2C.
With a flexible operating approach, the Group is on track to deliver another strong financial performance in the first half of 2022. During the Period, the period-on-period revenue increased by about 44.8% to approximately HK$1,472.9 million (1H2021: HK$1,017.2 million). Notably, revenue from Italy increased period-on-period by 118.0% to approximately HK$571.2 million (1H2021: HK$262.0 million). Gross profit amounted to approximately HK$259.3 million (1H2021: HK$214.1 million), representing an increase of 21.1% roughly. Net profit attributable to equity shareholders was approximately HK$51.2 million (1H2021: HK$35.2 million), representing a period-on-period increase of around 45.6%. The Board recommended the payment of an interim dividend of HK$0.13 per ordinary share in respect of the Period, with the dividend payout ratio reaching 68.8%
Air Freight Forwarding Services – 47.5% of total revenue
During the Period, the revenue from this segment was approximately HK$700.3 million (1H2021: HK$593.2 million), representing a period-on-period increase of approximately 18.1%. Gross profit of this segment decreased to approximately HK$114.4 million for the period from HK$129.1 million for the same period in 2021.
Distribution and Logistics Services – 15.1% of total revenue
During the Period, the revenue from this segment was approximately HK$222.5 million (1H2021: HK$192.5 million), representing a period-on-period increase of around 15.5%. The gross profit was approximately HK$35.1 million (1H2021: HK$38.2 million), representing a period-on-period decrease of approximately 8.1%.
Ocean Freight Forwarding Services – 37.4% of total revenue
During the Period, the revenue from this segment was approximately HK$550.1 million (1H2021: HK$231.5 million), representing a period-on-period increase of approximately 137.6%. Gross profit was approximately HK$109.9 million (1H2021: HK$46.8 million), representing a period-on-period increase of approximately 134.7%.
The Group has achieved remarkable results despite the challenging environment in the first half of 2022. Looking ahead, the Group remains optimistic about the future of the logistics industry, as the global economy gradually recovers and the supply chain issues are alleviated. To seize the opportunities in the post-pandemic era, the Group will strive to grow its business in the following aspects.
Executive Director and Chief Executive Officer of CN Logistics, Mr. Ngan Tim Wing said, “Despite the challenging business environment in the first half of the year, the Group was able to achieve satisfactory results, and recently awarded as the Top 10 Freight Forwarding Services Company in Asia Pacific by Logistics & Transportation Review, a global logistics publication. These once again demonstrate not only the Group’s foresight in development planning but also its ability to turn crises into opportunities. The acquisition of the European subsidiaries provided the Group a window to seize the post-pandemic opportunities in Europe and diversified the Group's earnings portfolio, which played a key role in supporting the financial performance when the Group’s business in China was severely affected by the pandemic. We also observe that the retail market has gradually returned to normal and a new wave of opportunities is poised as the pandemic is under control in China. In view of this, we have undertaken a second expansion of our Shanghai warehouse and are preparing for the next phase of development to meet the demands of our long-standing brand customers. We strongly believe that with our strategic presence in China and Europe, the Group will be able to continue to capture the opportunities in both places and build a strong foundation for medium to long-term development.”
Regarding the future development of CN Logistics, Mr. Ngan added, “We will continue to expand our global network. In addition to consolidating our network in mature markets, we will also continue to explore new markets. Earlier this year, we strengthened our business layout in Southeast Asia by establishing a local office in Vietnam, and we decide to set up a new office in Germany in the second half of the year. In addition, we will continue to develop new businesses to inject new impetus into our overall growth. Through the acquisition of Allport Cruise, the Group has extended its business to the niche market of cruise logistics and created a new revenue stream. Based on the latest assessment, we are confident that we will be able to meet the profit target stated in the share purchase agreement. At the same time, we will continue to promote new businesses in the field of eCommerce, such as PJF Wines (PJFWines.com), a cross-border eCommerce platform for premium wines and CNShip4Shop, exploring new growth drivers, achieving diversified development and continuing to create more value.”
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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.
30/08/2022 Dissemination of a Financial Press Release, transmitted by EQS Group.