Hong Kong, August 28, 2024 /PRNewswire/ -- Kerry Logistics Network Limited ("Kerry Logistics Network", the "Company" or the "Group", stock code: 0636.HK) announced its interim results for the six months ended June 30, 2024.

Financial Highlights

• Revenue* increased by 10% to HKD 25.432 billion (1H 2023: HKD 23.197 billion).
• Core operating profit* increased by 11% to HKD 1.2 billion (1H 2023: HKD 1.078 billion).
• The core net profit also increased by 5% to HKD 0.606 billion (1H 2023: HKD 0.575 billion).
• The attributable profit to shareholders for 1H 2024 was HKD 0.831 billion (1H 2023: HKD 0.368 billion), including a profit of HKD 0.241 billion generated from discontinued operations (1H 2023: loss of HKD 0.207 billion), with a year-on-year growth of 126%.
• The integrated logistics business recorded a segment profit of HKD 0.693 billion (1H 2023: HKD 0.718 billion), a slight decrease of 3%.
• The international freight business recorded a segment profit of HKD 0.74 billion (1H 2023: HKD 0.626 billion), an increase of 18%.
• The interim dividend of HK$0.10 per share will be distributed on September 23, 2024 (Monday) or around that time.

Only in terms of ongoing business operations.

Jerry Logistics Network's CEO and Executive Director, Zhang Bingquan, said, "In the first half of 2024, despite intensified geopolitical turmoil and persistently high interest rates, inflation has fallen to a three-year low, and the global economy has rebounded after three consecutive years of slowdown. Shipping and air freight rates have risen in the second quarter of 2024 due to various factors. With resilience, flexibility, and adaptability, Kerry Log Net Group provides flexible and cost-effective solutions to customers, turning challenges into opportunities in the volatile market. In the first half of 2024, the group's revenue increased by 10% annually and the core net profit of ongoing business operations increased by 5%, outperforming international peers."

Comprehensive logistics.
The group's comprehensive logistics business experienced a short-term contraction in the first half of 2024, with a 3% decline in divisional surplus. This was due to slow economic recovery and continued weak domestic demand, leading to a decline in major market business in Hong Kong and mainland China.

The profit of the Hong Kong business division declined by 11%, attributed to changes in consumer patterns by travelers and local residents leading to a decline in local consumption, especially a significant decrease in dining. The government's issuance of several subsidies in 2023 related to the epidemic also contributed to the decline in divisional profits compared to last year.

In mainland China, given the global soft demand dragging down manufacturing activities, coupled with economic instability causing a decline in retail consumption, the integrated logistics business recorded a 5% decrease. Integrated logistics in other Asian regions saw a 9% increase driven by growth in Singapore, Vietnam, the Philippines, and India, as well as stable performance at Kerry Siam Seaport in Thailand.

International freight transportation
In the first half of 2024, supported by growth in major markets such as the USA, mainland China, and Hong Kong, the group's international freight transportation business recorded an 18% increase.

With its wide customer base, competitive shipping rates, and strong capacity, Kerry Log Net surpassed its peers on the Asia-US trade route in the first half of 2024, and continues to maintain its leading position as a non-vessel operating common carrier on the world's busiest trade routes.

The air freight business of the International Freight Division has benefited from the growth of cross-border e-commerce and recorded steady volume growth even during the traditional off-season. The integration and cooperation with S.F. Holding have also yielded positive results, including cross-selling and the establishment of a joint venture to manage the international cargo station at Ezhou Airport in central China. The Kerry Freight self-controlled network connects multiple locations in Asia with the United States, and in the second quarter of 2024, it launched charter flight services from Ezhou, China to the United States to capture the growing market demand.

Summary by Chairman Dr. Benson Wong: "Despite the uncertainties in the global freight market and the variable economic recovery, we are optimistic about the improved performance in the 2024 financial year. The performance of the International Freight business is expected to rise in the second half of 2024. The expected increase will be driven by the sustained demand in the marine transportation sector, stable volume growth, and rising freight revenue, as well as the strong performance forecast for air freight in the fourth quarter of 2024. With our unparalleled Asian network, diverse global solutions, and extensive customer base, Kerry Log Net is committed to taking the lead in the dynamic logistics landscape and seizing market opportunities anytime, anywhere."

About Kerry Log Net Limited (Stock Code 0636.HK)
Kerry Log Net is an international third-party logistics service provider based in Asia, with highly diversified businesses and a powerful Asian network coverage. Its business covers a range of supply chain solutions, including integrated logistics, international freight (sea, land, air, rail, and multimodal transport), e-commerce, as well as industrial project logistics and infrastructure investment, etc.

Kerry Logistics Network has offices in 60 countries and regions around the world, establishing presence in half of the global emerging markets. Its diverse infrastructure, extensive international network coverage, and local expertise extend across mainland China, India, Southeast Asia, the CIS, the Middle East, Latin America, and other regions.

Kerry Logistics Network Limited achieved an annual revenue of over HKD 47.4 billion in 2023. It is listed on the Hong Kong Stock Exchange and is a constituent stock of the Hang Seng Corporate Sustainability Benchmark Index.