KLN Logistics Group reported its 2025 results, showing growth in core net profit despite a challenging global environment.
Financial Performance
- Revenue: HK$56.3 billion (-3%)
- Core operating profit: HK$2.63 billion (-4%)
- Core net profit: HK$1.40 billion (+3%)
- Profit attributable to shareholders: HK$1.41 billion (+7%)
The company proposed a final dividend of 16 HK cents per share, payable around June 8, 2026.
CEO Commentary
CEO Vic Cheung said:
“Global conditions remained weak in 2025 due to tariffs and geopolitical tensions. KLN stayed resilient and grew core net profit, outperforming the industry. We launched KLN 2.0 to drive customer-focused growth and better serve multinational clients.”
Integrated Logistics (IL)
The IL segment delivered HK$1.26 billion profit (+1%).
- Hong Kong: Profit fell 7% due to competition and weaker consumption. Customer gains in pharma and construction did not offset declines. Relocations to Shenzhen also impacted results.
- Mainland China: Profit dropped 11% due to weak demand and supply chain shifts under “China Plus One.” KLN cut costs and used AI to improve efficiency.
- Rest of Asia: Profit rose 23%. Companies shifted supply chains to Southeast Asia. KLN captured new business and saw strong performance in Thailand.
International Freight Forwarding (IFF)
The IFF segment reported HK$1.87 billion profit (-4%).
KLN focused on volume control and receivables discipline.
- It leveraged strong Trans-Pacific demand after temporary tariff easing.
- It benefited from stable Asia-Europe and intra-Asia trade lanes.
- Project logistics generated HK$3.8 billion revenue in EMEA.
- Its JV with S.F. Holding at Ezhou Airport generated HK$387 million revenue, with volumes up 75%.
Outlook
Cheung said:
“2026 will remain volatile due to geopolitical tensions and tariffs. The Middle East situation may disrupt trade and demand. Under KLN 2.0, we aim to double our scale, expand globally, and become a top 5 supply chain player over time.”
KLN will focus on expanding its network, growing its customer base, and strengthening its global capabilities.
