Shenzhen, China, March 28, 2023 (GLOBE NEWSWIRE) -- On March 28, 2023, Linklogis Inc. (09959.HK, “Linklogis”) released its 2022 annual results. The total revenue and income from principal activities reached RMB920 million. The adjusted profit was RMB200 million, and the total transaction volume reached nearly RMB260 billion. Thanks to the optimization of product structures, Linklogis achieved a record high gross profit margin of 83.8% in 2022. As of December 31, 2022, Linklogis’ cash reserves totaled RMB5.9 billion. In return for the shareholders’ support and trust, Linklogis’ board suggests paying a special dividend of HK$0.25 per share, totaling about HK$570 million.
Continuously Optimizing Customer Structure, with Steady Growth of Transaction Volume Driven by Multiple Dynamics
In 2022, Linklogis served 1,436 customers and partners, comprising 1,110 anchor enterprises and 326 financial institutions. The anchor enterprises cover all of the 31 industries listed in the SWS Industry Classification, including 42 of the Top 100 Enterprises in China. Moreover, Linklogis continuously optimized its customer structure. By the end of 2022, Linklogis has cumulatively served more than 180,000 SMEs.
According to China Insights Consultancy, Linklogis held 20.6% market share, ranking No.1 in the third-party supply chain finance technology solution market in China for the third consecutive year. In terms of the transaction volume of supply chain finance services, the top five industries served by Linklogisin2022 were real estate, infrastructure/construction, Internet, conglomerate and commerce/retail, accounting for 29%, 19%, 10%, 10%, and 4% respectively.
Anchor Cloud and FI Cloud are the key supply chain finance technology solutions of Linklogis. In 2022, the total volume of supply chain assets processed by Anchor Cloud reached RMB147.4 billion. Linklogis successfully won supply chain finance service platform projects from 24 large and high-quality anchor enterprises, including China Mobile and Dongfeng Motor. Through the dual deployment of “technology + operation”, the Multi-tier Transfer Cloud under the Anchor Cloud sustained high growth, and the total transaction volume increased by 51% year-over-year, reaching RMB75.1 billion.
Linklogis continued to enrich its product matrix through ongoing innovation in supply chain scenarios. Linklogis further expanded supply chain financing products, such as distributor financing, purchase order financing and supply chain bills, in addition to supply chain asset-backed securitization and digital accounts receivable certificates, across all stages of the industrial chain from sales to orders to warehousing. The one-stop and full-scope solutions can enhance customer stickiness, offer new products and applications to customers, and lead to the rapid growth in the total transaction volume through multiple growth drivers.
In 2022, the total volume of supply chain assets processed by FI Cloud were RMB99.7 billion. Linklogis continued to explore opportunities for synergetic development with financial institutions in the supply chain finance scenarios, and help financial institutions achieve precise inclusive finance. Currently, Linklogis has established partnerships with all wealth management subsidiaries of banks and insurance asset management companies that are eligible to participate in supply chain asset investments. On the direct supply chain financing front, Linklogis has accomplished system connection with 24 commercial banks.
Seizing the Opportunities of Digitization and Corporate Treasury System Build-up, and Empowering Sustainable Development through Technology
Facing the vast blue-ocean opportunities of the digital economy, Linklogis is actively building up capabilities in core technology and continuously improving the efficiency of supply chain financial services as well as the ability of digital and intelligent transformation services. In 2022, Linklogis invested RMB350 million in research and development, a year-over-year increase of 26.6%,accounting for 38.0% of the total revenue and income. The R&D staff of Linklogis accounted for over 60% of its total workforce. The number of patent applications reached 415, and Linklogis has acquired a total of 172 copyright registrations. In this year, Linklogis won Best Blockchain or Distributed Ledger Technology award in China by the Asian Banker, and was selected as the first batch of data merchants of Shenzhen Data Exchange.
According to the statistics of Guangdong Reglab for Innovative Supply Chain Finance, in 2022, more than 30 domestic enterprises launched supply chain finance platforms based on cutting-edge technologies or innovative models. About 60% of those supply chain finance platforms were led by large state-owned enterprises and local governments. Linklogis provided technology services to build supply chain finance platforms for 10 of these enterprises, including Hubei Communications Investment Group and Guangdong Holdings Limited.
In 2022, Linklogis released the first ESG report and stipulated its ESG mission of “Technology Empowers the Development of Sustainable Supply Chain Finance”. In this year, 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, among which the transaction volume increased by 130% in the second half compared to that in the first half. Taking the example of Linklogis and Agricultural Bank of China Chengdu Branch jointly supporting agricultural finance, the entire process from filing a financing application to receiving the corresponding agricultural loan was completed within half a day, allowing the funds to penetrate more effectively into the industrial chain of agriculture and animal husbandry.
In 2022, Linklogis received the Gold Award of The Outstanding ESG Performer of the Year by Hang Seng Indexes Company, and the 2022 ESG Exemplary Performance Award at the CFS Finance Summit. In addition, Linklogis was graded as “low risk” in the initial ESG rating by Sustainalytics, ranking in the top 15% within the global software and service industry.
Deepening International Presence and Further Tapping into Overseas Supply Chain Finance Technology Market
While continuously deepening the international presence, Linklogis has successfully tapped into new markets and achieved breakthroughs in cross-border business among multiple overseas countries and regions, and has been recognized as MNC Regional Headquarters in Shenzhen by the Shenzhen government. In 2022, the volume of supply chain assets processed by Cross-border Cloud amounted to RMB11.4 billion, up 42.5% year-over-year. To meet the urgent needs of Chinese cross-border e-commerce sellers for cross-border payment and settlement, foreign exchange settlement and financing, Linklogis cooperated with cross-border e-commerce platforms such as Amazon and provided one-stop integrated digital cross-border trade financing services for SME merchants on these platforms.
In 2022, Linklogis opened its international headquarters in Singapore. In January, Olea, the joint venture set up by Linklogis and Standard Chartered, reached a strategic cooperation with Vayana Network, India’s largest trade finance platform. In June, Green Link Digital Bank, jointly founded by Greenland Group and Linklogis, officially launched in Singapore, promoting the development of the digital economy in Singapore and fostering an open digital finance ecosystem.
In December, Linklogis signed a letter of intent with Ajlan & Bros Holding, a diversified international enterprise based in Saudi Arabia, announcing the plan to establish a joint venture in Riyadh to develop local supply chain finance services. The joint venture will center its business around Saudi Arabia with a coverage in the Middle East and North Africa. The rapidly growing customer base, product innovation and deepening international presence have generated strong growth momentum for the leapfrog growth of Linklogis’ international business.
“Looking ahead to 2023, as the macroeconomy gradually recovers and the social life returns to normal, we are confident in the role of supply chain finance technology solutions in improving industrial chain efficiency and contributing to economic recovery. Under the positive impact of policies, the rebound in market and industry demand and abundant business pipeline, we are confident that our business will thrive on a growth trajectory. Linklogis will closely monitor the market to capture new opportunities, promote deeper integration of technology and product innovation across diverse application scenarios, and enhance investment in sustainable industrial chain to promote the high-quality development of the real economy." Song Qun, the founder, chairman of the board and CEO of Linklogis, said.
