Linklogis Announces 2023 Annual Results: Maintaining the Largest Market Share in China for 4 Consecutive Years

On
March
26,
2024,
Linklogis
Inc.
(09959.HK,
“Linklogis”),
a
leading
supply
chain
finance
technology
solution
provider
in
China, released
its
2023
annual
results.
In
2023,
the
total
revenue
and
income
from
principal
activities
amounted
to RMB870
million,
of
which,
the
revenue
and
income
for
the
second
half
of
2023
reached RMB480
million,
representing
a
15.2%
year-over-year
increase. During
the
year,
the
total
transaction
volume
processed
by its technology
solutions
reached
RMB322
billion,
a
24.2%
year-on-year
increase,
serving
more
than
1,800
anchor
enterprises
and
financial
institutions. By
the
end
of
the
year, Linklogis
has empowered over 250,000
SMEs
to
access
efficient
and
convenient
digital
inclusive
financial
services. The
company
maintains
a stable financial
position
with
cash
reserves
of RMB4.8
billion.

Linklogis announced
a
new
shareholder
return
plan,
intending
to
enhance
capital
returns
to
shareholders
through
cash
dividends
and
share
repurchases.
The
board
of
directors
of
Linklogis
proposes
to
pay
a
special
dividend
of
HK$0.1
per
share,
totaling
approximately
HK$230
million.
Furthermore,
the
board
expresses
confidence
in
the
company’s
prospects and sustained
growth
in
the
future, and
announces
a
share
repurchase
plan
of
up
to US$100
million.

Accelerating
the Replacement
of Old Growth Drivers
with New Ones, the Accumulated Transaction
Volume
Surpasses RMB1 Trillion

In
2023,
Linklogis
expedited
the
replacement
of
old
growth
drivers
with
new
ones,
continuously
enhancing
the
resilience
of
its
business
development.
The
total
transaction
volume
processed
by
its
technology
solutions
reached
RMB322
billion,
representing
a
year-over-year
increase
of
24.2%.
By
the
end
of
2023,
the accumulated total
volume
of
supply
chain
assets
processed
by Linklogis since
its
establishment
had exceeded RMB1.13
trillion. In
2023,
the
number
of
anchor
enterprise
customers
for
Linklogis’
supply
chain
finance
technology
solutions
increased
203
to
reach
a
total
of
604,
an
increase
of
51%
from
2022.
According
to
China
Insights
Consultancy,
Linklogis
held
20.9%
market
share,
ranking
No.1
in
the
third-party
supply
chain
finance
technology
solutions
providers
in
China
for
the
fourth
consecutive
year.

Anchor
Cloud
and
FI
Cloud
are
the
key
supply
chain
finance
technology
solutions
of
Linklogis.
In
2023,
the
total
volume
of
supply
chain
assets
processed
by
Anchor
Cloud
reached
RMB201.3
billion,
a
year-over-year
increase
of
36.5%.
Regarding
the
Multi-tier
Transfer
Cloud
within
the
Anchor
Cloud,
it
achieved
explosive
growth and
accelerated
the
replacement
of
old
growth
drivers
with
new
ones
for
the
company.
The Multi-tier
Transfer
Cloud processed
a
total
volume
of
supply
chain
assets
amounting
to
RMB136.8
billion,
marking
an
impressive
year-over-year
growth
of
82.2%.
The
number
of
new
customers
in
this
sector
increased
235
during
the
year,
achieving
a
customer
retention
rate
of
99%.

In
terms
of
product
and
scenario
innovations,
Linklogis
landed
technology
solutions
including
order
financing
and
distributor
financing
based
on
its
asset-backed
securitization
and
multi-tier
transfer
products.
Linklogis
successfully
landed
39 supply
chain
platforms
projects
in
collaboration
with
state-owned
enterprises
and
leading
private
enterprises
including
China
Electrical
Equipment
Group,
Jiangxi
Financial
Investment
Group,
and
Chengdu
Xingcheng
Investment.

In
2023,
the
total
volume
of
supply
chain
assets
processed
by
FI
Cloud
were
RMB107.4
billion,
with
the
eChain
Cloud
segment
processing
a
total
supply
chain
assets
volume
of
RMB80.4
billion,
up
18.7%
from
a
year
earlier.
Linklogis
actively
explored
opportunities
for
development
in
providing
scenario-based
financial
technology
services
and
modular
intelligent-tools
output
with
various
financial
institutions.
Linklogis
successfully
applied
supply
chain
finance
GPT
model
including
AI-powered
check
of
documents,
AI-powered
guaranty
registrations,
and
AI-powered
intelligent
KYC
identifications
to
projects
in
collaboration
with
multiple
financial
institutions
such
as
Standard
Chartered
Bank
and
Bank
of
East
Asia.

Embracing AIGC:
Large Language Model
Applications
Promote
a
Virtuous
Cycle
of “Technology-Industry-Finance”

As
a
leader
and
pioneer
in
the
supply
chain
finance
technology
industry, Linklogis continues
to
increase
its
investment
in
technology
innovation,
fostering
the
synergetic
and
efficient
development
of
industrial
ecology,
and
facilitating
the
virtuous
cycle
of
“technology-industry-finance.”
With
ChatGPT
and
other
large
language
models
taking
off
globally,
artificial
intelligence
has
shifted
from
an
early-adopter
technology
to
a
universal
one.
Linklogis
is
actively
embracing
the
industry
transformation
opportunities
brought
by
innovations
in
AIGC
applications,
by
utilizing
open-source
large
language
models
to
create
a
GPT
model
for
supply
chain
finance,
namely
LDP-GPT.
In
collaboration
with
a
foreign
bank,
Linklogis
successfully
applied
LDP-GPT
in
a
project
that
involved
the
AI-powered
intelligent
check
of
document.
By
deeply
applying
GPT
models
in
supply
chain
finance,
Linklogis
significantly
improves
efficiency
in
compiling
industrial
information
and
analyzing
transactions,
facilitates
intelligent
risk
assessment,
and
reduces
financing
and
operating
costs.
Linklogis
also
used
it
in
the
company’s
daily
operation
of
customer
management,
operation
delivery
and
software
development,
to
help
the
group
implement
cost
reductions
and
efficiency
improvements.

Linklogis actively
explores the
application
of
cutting-edge
technologies,
such
as blockchain,
big
data,
and
privacy
computing. In
2023,
Linklogis
was
successfully
certified
as
Global
Software
Development
Capability
Maturity
Model
Integration
(CMMI)
Level
5,
and
was
awarded
as
an “Outstanding
Contribution
Institution” by
Trusted
Blockchain
Initiatives
(TBI).
Besides,
Linklogis
was
certified
as “Specialized
and
Sophisticated
Enterprise” in
Shenzhen,
was
featured
in
the “Top
50
Influential
AI
SaaS
Enterprises
in
2023”
list,
won “Global
SME
Finance
Award”,
and
received
the “Best
Digital
Solution–Supply
Chain” award
from “The
Asset” in
2023. 

Advancing
Global Presence,
and Assisting Chinese
Manufacturing Enterprises
in Going Global

Linklogis
has been
optimizing its cross-border
and
international
business
models
while
actively
implementing
global
development
strategy.
In
2023,
the
volume
of
supply
chain
assets
processed
by
Cross-border
Cloud
amounted
to
RMB12.6
billion.

Linklogis’ cross-border
cloud
business mainly includes
platform-based
digital
cross-border
trade
financing
as
well
as
supply
chain
financing
technology
solutions
for
Chinese
enterprises
expanding
globally.
With
respect
to
the
platform-based
business, Linklogis
has been
collaborating
with
global
platforms
including
Infor,
Amazon,
and
Shopee
to
provide comprehensive
digital
cross-border
trade
financing
services
for
SME
merchants
on
the
platforms. In
serving
Chinese
enterprises, Linklogis
seized
the
wave
of
Chinese
companies
going
overseas
and
assisted large
domestic
enterprises
such
as OPPO
in in
building
and
expanding
global
supply
chain
financing
systems,
expanding
its
supply
chain
finance
platform
to
cross-border
supply
chain
financing
scenarios,
and
facilitating
the
digital
intelligence
transformation
of
its
overseas
supply
chain
system.
Moreover,
in
2023, Linklogis’
international
business
team broke into
the
Vietnamese
and
Bangladeshi
markets
by
establishing
local
teams
in
addition
to
its
existing
offices
in
Hong
Kong
and
Singapore.

Promoting
Sustainable
Growth
in
the
Supply
Chain,
and Supporting
Financing
for
Small Live-streaming E-commerce Merchants

As
sustainable
development
becomes an important
component
of
the
global
agenda,
a
growing
number
of
supply
chain
finance
solutions
are
beginning
to
incorporate
environmental
impact
and
social
responsibility
considerations.
Adhering
to
the
mission
of
“technology
empowers
the
development
of
sustainable
supply
chain
finance”,
Linklogis is
earnestly
fulfilling its commitments
in
environmental,
social
and
governance
(ESG).

In
2023, Linklogis collaborated
with
a
number
of
financial
institutions
to
promote
innovative
exploration
of
sustainable
supply
chain
finance
models.
In
2023,
the
assets
of
transactions
that Linklogis served
related
to
sustainable
supply chains
(including
renewable
energy,
rural
revitalization,
environmental
protection,
intellectual
property,
etc.)
reached
RMB19.2
billion,
up
178%
from
last
year.
Linklogis’ efforts
and
contributions
in
the
ESG
field
continued
to
be
recognized.
During
the
year,
Linklogis
was
again
graded
as “low
risk” in
the
ESG
rating
by
Sustainalytics,
a
global
authoritative
rating
agency,
ranking
in
the
top
5%
within
the
global
software
and
service
industry.
 
  Supply
chain
finance
continues
to
play
an
important
role
in
driving
economic
recovery
and
revitalizing SMEs.
In
response
to
the
thriving
live
e-commerce
industry
and
its
high
demand
for
capital
turnover, Linklogis offered supply
chain
financing
services
to
small
live-streaming
e-commerce
merchants
based
on
their
trade,
logistics
and payment data,
and
collaborated
with
financial
institutions
to
optimize
financing
models.
In
2023, Linklogis facilitated around 500
small
live-streaming
merchants
on
Douyin,
Kuaishou,
PDD
and
other
platforms in
obtaining nearly
RMB700
million
in
financing.

Charles
Song,
the
founder,
chairman
and
CEO
of
Linklogis,
said,
“Looking
ahead
to
2024,
Linklogis
will
focus
more
on
its
core
business
of
sustainable
high
growth,
expedite
the
replacement
of
old
growth
drivers
with
new
ones
and
steer
toward
a
new
stage
of
high-quality
development.
While
ensuring
swift
customer
acquisition,
we
will
also
cater
to
the
needs
of
our
existing
customers,
and focus
on
increasing
customer
value.
We
will
embrace
the
opportunities
brought
by
the
wave
of
AIGC,
continuously
explore
new
technologies
and
applications,
and
continue
to
improve
operational
efficiencies
and
cost
reductions. Linklogis will
continue
to
enhance
shareholder
returns
through
cash
dividends
and
share
repurchases. Linklogis
is
embarking
on
a
new
journey
with
confidence,
poised
to
create
even
greater
value
for
both
customers
and
shareholders
in
the
future.“