Linklogis Releases 2024 Interim Results, with a Revenue of RMB410 Million and Cash Reserves of RMB5.1 Billion

On
August
29,
2024,
Linklogis
Inc.
(09959.HK,
“Linklogis”)
released
its
2024
interim
results.
In
the
first
half
of
2024,
the
total
transaction
volume
processed
by
the
technology
solutions
of
Linklogis
reached
RMB165.9
billion,
a
year-over-year
increase
of
17%.
The
total
revenue
and
income
from
principal
activities
amounted
to
RMB410
million,
up
5.6%
from
the
previous
year,
with
a
gross
profit
margin
of
70.9%,
showing
significant
improvement
compared
to
the
same
period
last
year. By the
end
of
June,
Linklogis
has
empowered
over
290,000
SMEs
to
access
efficient
and
convenient
digital
inclusive
financial
services.

Linklogis maintains
a
stable
financial
position
with
cash
reserves
of
RMB5.1
billion.
Linklogis
continues
to
enhance shareholder
returns through
cash
dividends
and
share
repurchases.
So
far
this
year, Linklogis has
distributed
HK$215
million
in
cash
dividends
and
repurchased
shares
totaling
HK$278
million.

Additionally,
Linklogis
has
signed
a
letter
of
intent
for acquisition with Shenzhen
Bytter
Technology
Co.,
Ltd.
(“Bytter”)’s
shareholder.
Upon
completion
of
the
acquisition,
Linklogis
will
become
the
controlling
shareholder
of
Bytter.
By
integrating
the
core
strengths
of
both
parties
in treasury management
and
supply
chain
finance technology, the
two
sides
will jointly
help
customers
build
world-class
financial
management
platforms and facilitate the construction of
intelligent
treasury
management
systems
for
state-owned
enterprises
and
large-and-medium-sized
private
enterprise
customers.

Market
Share
Remains
Top
with
Continued
Growth
in
Transaction
Volume
and
Customer
Numbers

In
the
first
half
of
2024,
the
total
transaction
volume
of
supply
chain
assets
processed
by
Linklogis’
technology
solutions
reached
RMB156
billion,
representing
a
year-over-year
growth
of
15%,
mainly
benefiting
from
a
comprehensive
focus
and targeted investment
in
strategically
prioritized
businesses.
The
total
volume
of
supply
chain
assets
processed
by
Anchor
Cloud
reached
RMB123.7
billion,
a
year-over-year
increase
of
40%.
The
total
volume
of
supply
chain
assets
processed
by
FI
Cloud
were
RMB32.3
billion. The Multi-tier
Transfer
Cloud
within
the
Anchor
Cloud
continued
to
show
robust
growth,
processing
a
total
volume
of
supply
chain
assets
of RMB86.3
billion,
a
year-over-year
increase
of
57%, and maintaining
a
high
customer
retention
rate
of
99%.

In
the
first
half
of
the
year,
Linklogis
continued
to acquire a
broad
and
diverse
range
of
business
partners.
The
total
number
of
anchor
enterprises
and
financial
institution customers for its supply
chain
finance
technology
solutions
increased
by
152,
up
16%,
to
856
compared
with
2023.
Linklogis’ anchor enterprise customers cover
all
31
industries
listed
in
the
SWS
Industry
Classification,
among
which
13
industries
contributed
more
than
RMB2
billion
in
supply
chain
asset
transactions
in
the
first
half
of
2024.
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
four
consecutive
years.

On
the
anchor
enterprise
side, Linklogis continued
to
promote
deep-diving
in
the
regions
and
industries,
further
expanding its coverage
of
state-owned
enterprise
customers,
with
78
new
state-owned
enterprise
customers
added
in
the
first
half
of
the
year.
On
the
financial
institution
side, Linklogis continued
to
expand its cooperation
with
financial
institutions
and
accelerate the coverage
of
bank
branches. In the
first
half
of
2024, Linklogis served
336
financial
institutions,
including
banks,
trust
companies,
insurance
asset
management
companies,
securities
companies,
and asset management companies.

In
terms
of
product
and
scenario
innovation,
centering
on
the
expansion
of
product
categories
and
innovative
scenarios
in
the
upstream
and
downstream
of
supply
chains,
Linklogis
has
continuously
explored
the
innovative
practice
of
the
“de-anchored”
business
model
for
supply
chain
finance.
Linklogis
has
offered
and
landed
comprehensive
supply
chain
finance
technology
solutions
including
order
financing
and
distributor
financing,
and
assisted
17
state-owned
enterprises
and
leading
private
enterprises
in
building
supply
chain
finance
technology
platforms.

As
for the
overseas
market,
the
volume
of
supply
chain
assets
processed
by Linklogis’ Cross-border
Cloud
amounted
to
RMB9.3
billion,
marking
a
63%
year-over-year
increase.
Linklogis
has
been
actively
exploring
development
opportunities
for
various
innovative
scenarios
to
serve financial
institutions
outside
China mainland, and continues
to
explore
innovative
business
models
in
cross-border
and
international
supply
chain
finance,
assisting
multiple
Chinese enterprises in expanding their
global
supply
chain
industry-finance
systems.

Strategic
Acquisition
of
Bytter
to
Advance Intelligent
Treasury System
Construction

To
further
enrich
its
product
portfolio and
establish
a
comprehensive
digital
service
capability
for
the
corporate
industry-finance
system, Linklogis
has
signed
a
letter
of
intent
for
acquisition
with Bytter’s
shareholder on
August
29.
Upon
completion
of
the
acquisition,
Linklogis
will
become
the
controlling
shareholder
of
Bytter. 

Bytter
is
a
leading
provider
of
treasury
management
solutions
in
China,
possessing
the
technical
implementation
capabilities
for
all
11
treasury
function
modules
required
by
the
State-owned
Assets
Supervision
and
Administration
Commission
of
the
State
Council.
With
over
20
years
of
industry
experience,
it
has
a
comprehensive
treasury
management
product
system,
a
rich
anchor
enterprise
and
financial
institution
customer
base,
a
professional
implementation
and
delivery
team,
as
well
as
a
favorable
reputation
in
the
industry. This
acquisition
aims
to
maximize
synergies
of
the
two
sides,
enhance
operational
efficiency
through
resources
integration,
and
improve
Linklogis’ overall
product
capabilities
and
core
competitiveness.

Linklogis
will
further
enrich
its
product
portfolio
based
on
the
strategic
direction
of
building
modern
intelligent
industry-finance
treasury
products,
extending
from
anchor
enterprises
upstream
and
downstream
 supply
chain
financing
solutions
to
group
treasury
management
solutions, providing complete
services
from treasury
management to
supply
chain
finance
system
construction
for
state-owned
enterprises
and
large-and-middle-sized private
enterprise
customers
to
upgrade
their
intelligent
treasury
management
platforms, and helping
customers
accelerate
the
construction
of
world-class
financial
management
systems.

Driving
Industry
Transformation
through
Innovation
and
Accelerating
Full-Stack
AI
LLM
Development

As
a
leader
and
pioneer
in
the
supply
chain
finance
technology
industry,
Linklogis
continues
to
invest
heavily
in
cutting-edge
technologies
such
as
AI,
aiming
to
achieve
a
deep
integration
of
“technology-industry-finance”.
By
driving
industry
transformation
through
technological
innovation,
Linklogis
creates
tangible
and
effective
value
for
all
parties
in
the
chain-affiliated
ecosystem
of
industry
chains.

In
the
first
half
of
2024,
Linklogis’
R&D
expenses
reached
RMB178 million.
As
of
June
30,
2024,
the
company’s
R&D
employees
numbered 536,
accounting
for
59%
of
total
employees.
Linklogis
has
successfully
developed
“AI
Agent”, the
first
 AI-based platform
of
the
industry
for
supply
chain
document
verification,
which
significantly
enhanced
the
automation
and
accuracy
of
document
processing
through
the
application
of
deep
learning
and
natural
language
processing.
The
platform
has
been
successfully
delivered
and
applied
in
many
financial
institutions
and
won
the
“Best
AI
Technology”
award
from
The
Asian
Banker
in
2024.

Furthermore,
Linklogis
accelerated
the
full-stack
technological
construction
of
the
vertical
domain large
language
model
(“LLM”),
LDP-GPT,
establishing
a
distributed
training
and
inference
framework
covering
LLM
pre-training,
fine-tuning
to
deployment.
In
addition,
the
company
explored
the
application
of
technologies
such
as
RAG-based
vertical
knowledge
base
Q&A
and
intelligent
writing
in
multiple
scenarios
including
operations,
risk
control,
and
customer
acquisition
of
financial
institutions,
thereby
promoting
the
implementation
of
more
LLM
commercial
applications
in
financial
institutions.

Technology
Inclusiveness
Drives the Development of Sustainable
Supply
Chain

Linklogis
actively
fulfills
its
social
responsibility,
upholding
the
mission
of
“technology
empowers
the
development
of
sustainable
supply
chain
finance.”
Linklogis
is
committed
to
building
a
high-quality
inclusive
financial
system
and
contributing
to
both
the
growth
of
the
real
economy
and
the
progression
of
the
digital
economy.

In
the
first
half
of
the
year,
the
assets
of
transactions
that
Linklogis
served
related
to
sustainable
supply
chains
(including
renewable
energy,
rural
revitalization,
environmental
protection,
intellectual
property,
etc.)
reached
RMB15
billion,
up
241%
compared
to
the
same
period
last
year.
Linklogis
further
accelerated
the
effective
penetration
of
its
chain-affiliated
ecosystem,
cumulatively
assisting
more
than
290,000
SMEs
throughout
the
upstream
and
downstream
ecosystem
of
the
supply
chain
in
accessing
efficient
and
convenient
digital
inclusive
finance
services.

Linklogis’
outstanding
performance
in
ESG was widely
recognized.
Linklogis’
ESG
solution
“SCeChain”,
developed
in
collaboration
with
Standard
Chartered
Bank,
won
the
“Best
China
ESG
Solution
Award”
from
The
Asset,
alongside
the
Excellent Corporate
in
ESG
Innovation
and
Practice,
among
other
awards.

In
terms
of
ESG
ratings,
Linklogis
was
graded
as
“Low
Risk”
by
Sustainalytics,
an
authoritative
ESG
rating
agency
under
Morningstar,
ranking
in
the
top
5%
of
the
global
software
and
services
industry.
Linklogis
was
awarded
an
“A”
rating
by
Wind
Information
in
its
ESG
evaluation,
ranking
No.5
among
181
software
service
companies
assessed.
In
the
first
half
of
2024,
Linklogis
was
selected
for
inclusion
in
S&P
Global’s
The
Sustainability
Yearbook
(China
Edition)
2024. 

Charles
Song,
the
founder,
chairman
and
CEO
of
Linklogis,
said,
“Looking
ahead
to
the
second
half
of
the
year,
we
will
focus
on
core
businesses
that
generate
sustainable
revenue
growth
and
profitability,
while
expediting
the
replacement
of
old
growth
drivers
with
new
ones.
We
will
continue
to
deepen
customer
engagement,
embrace
AI-driven
technological
breakthroughs
that
herald
a
new
era
in
technological
revolution,
and
enhance
customer
value
through
innovative
product
applications.
We
plan
to
optimize
internal
resource
allocation,
improve
operational
efficiency,
and
implement
technology-driven
cost
reduction
and
efficiency
measures
to
regain
profitability.
Additionally,
we
will
remain
committed
to
enhancing
shareholder
returns and
creating sustainable
value
for
our
shareholders.”