CN Logistics
[2130.HK] CN Logistics Announces 2021 Annual Results; Revenue Increased by 32.3% to HK$2,673.4 million; Profit For the Year Surged by 50.4% to HK$ 123.3 million
CN Logistics International Holdings Limited (Incorporated in the Cayman Islands with limited liability) (Stock code:2130.HK)
Announces 2021 Annual Results Revenue Increased by 32.3% to HK$2,673.4 million Profit For the Year Surged by 50.4% to HK$ 123.3 million Proposed Final and First Special Dividend of HK$0.21, with Payout Ratio Reaching 97.0%
(28 March 2022 – Hong Kong) CN Logistics International Holdings Limited (“CN Logistics”, and together with its subsidiaries, the “Group;” stock code: 2130) is pleased to announce its audited consolidated results for the year ended 31 December 2021 (the “Year”).
The Year of 2021 was full of challenges, yet the Group managed to explore new opportunities and achieved remarkable results. Although the global economy did not fully recover from the impact of the pandemic, the demand for logistics services, especially those in relation to luxury and fashion products, continued to gain momentum. To seize the opportunities brought by the uprising worldwide demand, the Group completed the expansion of its highly automatic distribution centre in Shanghai to enhance overall capacity to meet with client’s increased demand, and also fully-acquired the two subsidiaries in Italy and Switzerland, respectively, as part of the plan to forge Italy as the European business hub and consolidate the ample resources in the region.
With the success of its business strategies, the Group achieved a set of outstanding results. During the Year, the revenue increased year-on-year by (“YoY”) approximately 32.3% to approximately HK$2,673.4 million (2020: HK$2,020.6 million). Gross profit amounted to approximately HK$502.7 million (2020: HK$394.3 million), representing an increase of approximately 27.5%. Profit attributable to the Company increased YoY by 50.4% to HK$ 123.3 million (2020: HK$82.0 million). The Board recommended the payment of a final dividend of HK$0.12 and a special dividend of HK$0.09 per share to thank the shareholders for their continuous support, with the payout ratio reaching 97.0%.
Air Freight Forwarding Services – 60.7% of total revenue The air freight forwarding business recorded a revenue of approximately HK$1,623.6 million (2020: HK$1,424.1 million), representing an increase of approximately 14.0%. Gross profit of the segment also increased from approximately HK$259.3 million in 2020 to approximately HK$262.3 million, representing an increase of approximately 1.2%. The increase was primarily due to the uprising demand for air freight forwarding services and distribution and logistics services for high-end fashion in Europe and Asia. Additionally, the Group’s ability to provide customers with air freight forwarding services at a higher rate due to global cargo space shortage also contributed to the growth.
Distribution and Logistics Services – 14.6% of total revenue The revenue from this segment was approximately HK$390.0 million (2020: HK$345.6 million), representing an increase of approximately 12.8%. Gross profit was approximately HK$58.6 million (2020: HK$59.7 million), which remained stable compared to FY2020. The increase in revenue was due to the Group’s enhancement of overall capacity and the ability to source additional fashion logistics’ orders.
Ocean Freight Forwarding Services – 24.7% of total revenue The revenue from this segment was approximately HK$659.8 million (2020: HK$250.9 million), representing an increase of approximately 163.0%, and gross profit was approximately HK$181.8 million (2020: HK$75.3 million), representing an increase of approximately 141.4%. The significant growth in the segment, especially in the Group’s Italy office, was mainly due to the continuous increase in ocean freight rate during the year and the ability of regional office to source sizable customers from different sectors such as tire market and tableware market. In addition, the significant growth on the import shipment of the raw materials for high -end fashion products from PRC and Southeast Asia also acted as a growth driver.
Prospects Looking forward to 2022, the logistics industry is expected to have a brighter outlook, as the world gradually recovers from the pandemic. To grasp the post-pandemic opportunities, the Group plans to further expand its business in several aspects.
Executive Director and Chief Executive Officer of CN Logistics, Mr. Ngan Tim Wing said, “We are delighted to present our remarkable annual results for 2021, which has once again demonstrated our ability of turning challenges into opportunities. Leveraging on our long-term relationships with suppliers, we were able to secure enough cargo spaces for our brand customers, as well as benefit from the rising freight rate due to the ongoing cargo supply shortage. As we had successfully foreseen the upcoming opportunities in the post-pandemic era, we promptly reacted to enhance our handling capacity and further strengthen our global presence through infrastructure expansion and acquisitions. Moreover, we tapped into the field of B2C by launching our cross-border e-Commerce platform targeting wine products as well as partnering with the e-Commerce companies such as YesAsia and JD Logistics, bringing in more synergies to our overall development.”
Commenting on the future development of CN Logistics, Mr. Ngan added, “Our forward-looking strategy in expanding our global network has begun to pay off. Looking ahead, we plan to further strengthen our European business network by developing our Italy office into a regional hub and seeking for more opportunities of tapping into other European countries, especially those in the Scandinavian and Eastern Europe. Meanwhile, we will continue to expand our business network in Southeast Asia markets including Vietnam, Malaysia, Thailand and other countries, as well as in Greater China to seize the market opportunities. With the expanding global footprint, we will also attempt to tap into different vertical markets to further enhance our financial performance. For instance, we have recently launched our Groupage service which provides international distribution services from overseas countries to Asia and successfully acquired a company focusing on cruise logistics to tap into another vertical market with high entry barriers and plenty of opportunities. With the business scope continues to diversify, we will strive to deliver another set of outstanding results to our shareholders.”
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28/03/2022 Dissemination of a Financial Press Release, transmitted by EQS Group. |