On August 28, 2023, Linklogis Inc. (09959.HK, “Linklogis”) released 2023 interim results. In the first half of 2023, the total transaction volume processed by the technology solutions of Linklogis was close to RMB142 billion, a year-over-year increase of 22%. The total revenue and income from principal activities reached RMB390 million. As of June 30, 2023, Linklogis’ cash reserves totaled RMB6 billion, and has partnered with 1,548 anchor enterprises and financial institutions, covering 41 of the Top 100 Enterprises in China and all top 20 commercial banks in China.
Maintaining Stable and Resilient Operations, and Seizing Development Opportunities for Treasury Platform
Anchor Cloud and FI Cloud are the key supply chain finance technology solutions of Linklogis. In the first half of 2023, the total volume of supply chain assets processed by Anchor Cloud reached RMB88.4 billion, a year-over-year increase of 44%. As for Multi-tier Transfer Cloud under the Anchor Cloud, the total transaction volume increased by 106%, reaching RMB55 billion, with a customer retention rate of 99%.
The development of digital technology has facilitated state-owned enterprises to enhance the integration of industry and finance and the construction of treasury platform. In the first half of 2023, Linklogis won the bidding for 15 projects for the comprehensive supply chain platforms of state-owned enterprises and leading private enterprises including China Electrical Equipment Group, Wuhan Metro Group, Jiangxi Financial Investment Group, and China Communications Construction Company Capital Holdings. In addition, Linklogis also launched the “Group Smart Treasury Platform” to develop innovative treasury solutions.
In the first half of 2023, the total volume of supply chain assets processed by FI Cloud were RMB47.6 billion, and the number of financial institution customers and partners of Linklogis increased to 434. In the eChain Cloud segment, the total volume of supply chain assets processed by Linklogis was RMB35 billion, up 7% year-over-year. Besides assisting financial institutions in continuing the digitization of their supply chain finance processes, Linklogis actively explored opportunities to develop more innovative financial technology services with various financial institution partners, empowering financial institutions to achieve high-quality transformation and development in areas such as marketing, risk management, and operations.
Integrating Industry and Finance across Industries, and Facilitating Live–streaming Economy through Technology
During the first half of 2023, Linklogis reached cooperation with 1,548 anchor enterprises and financial institutions, covering 41 of the Top 100 Enterprises in China and all top 20 commercial banks in China. At present, the supply chain finance technology solutions of Linklogis cover all 31 industries listed in the SWS Industry Classification, among which, 13 industries contributed over RMB2 billion in supply chain asset transactions in the first half of 2023, including infrastructure/construction, real estate, commerce/retail, conglomerate, and utilities.
Focusing on the supply chain ecosystems of various industries such as the internet, telecommunication, food, and building materials, Linklogis continued to extend and enrich its supply chain financing solutions, providing digital and intelligent supply chain finance innovative services to many well-known large domestic enterprises such as Meituan, China Mobile, Bright Food Group, China National Building Material (CNBM), LiuGong Machinery, and OPPO. In addition, Linklogis also made breakthroughs in financing use cases across all parts of the industry chain, including accounts receivable, prepayments, inventory, and warehouse receipts. These breakthroughs enabled Linklogis to offer innovative data-driven financing solutions such as order financing and distributor financing to the supply chain financing platforms of anchor enterprise customers.
With the support of digital technology, the rise of social media traffic has driven the rapid growth of live–streaming e-commerce, and the live–streaming industry has witnessed explosive growth. In the first half of 2023, Linklogis restructured the profiles of small and medium-sized customers through technologies such as artificial intelligence and big data, connecting the industry chain of live–streaming e-commerce, and has established a set of supply chain finance technology solutions for the live–streaming e-commerce industry. Partnering with financial institutions and supply chain enterprises, Linklogis served multiple categories of e-commerce products such as clothing, food, fresh food, jewelry, general merchandise, and digital products, alleviating financial pressure for SME farmers and merchants in the live–streaming e-commerce industry chain.
Assisting Chinese Enterprises in Venturing into Overseas Markets and Continuously Deepening International Presence
Adhering to the vision of becoming the leading supply chain finance technology solution provider, Linklogis not only maintains a leading market share in the domestic market, but also continues to expand its international business and assist Chinese enterprises in venturing into overseas markets. In addition to traditional scenarios in cross-border trade, cross-border e-commerce, and online travel platforms, Linklogis has expanded into further cross-border financing scenarios by helping to upgrade and digitize the supply chains of Chinese manufacturers that are expanding overseas, maintaining a stable growth momentum in international business. In the first half of 2023, the total volume of supply chain assets processed by Cross-border Cloud was RMB5.7 billion, up 23% year-over-year.
Linklogis actively positions itself around financing scenarios related to Chinese companies’ overseas supply chains. Leveraging its mature overseas supply chain finance technology capabilities and operational experience, Linklogis has established efficient and comprehensive global supply chain management systems that help companies embrace the benefits of globalization.
While continuously deepening the international presence, Linklogis has successfully tapped into new markets and achieved breakthroughs in cross-border business among multiple overseas countries and regions, and has been recognized as MNC Regional Headquarters in Shenzhen and Enterprise Headquartered in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone by the Shenzhen government. In the first half of 2023, Olea, the joint venture set up by Linklogis and Standard Chartered, successfully entered the Vietnamese market, expanding local and cross-border trade financing businesses in Vietnam. Besides, Linklogis participated in an innovation project led by the BIS Innovation Hub Hong Kong Centre, jointly developing prototypes with partners including Standard Chartered to explore the digital trade token solutions for SME financing.
Building Supply Chain Finance GPT and Increasing Investment in Sustainable Development
While expanding application scenarios and products in various industries, as a pioneer and practitioner in supply chain finance technology innovation, Linklogis maintained its focus on applying cutting-edge technologies such as artificial intelligence, blockchain, and big data within the supply chain ecosystem. In the first half of 2023, Linklogis is actively embracing the industry transformation opportunities brought by innovations in AIGC application. Linklogis utilizes open-source large language models to create GPT models for the supply chain finance vertical, improves the efficiency to compile industrial information and analyze transactions, facilitates intelligent risk assessment, and thereby further reduces financing and operating costs, contributing to the development of a more secure, accurate, and efficient ecosystem of digital and intelligent inclusive financial services for the supply chain.
With regard to the Environmental, Social, and Governance (“ESG”) performance, Linklogis upholds the mission of “technology empowers the development of sustainable supply chain finance” to contribute positively to the ESG agenda. As of June 30, 2023, Linklogis has cumulatively served more than 210,000 SMEs through technology solutions, providing them with convenient, efficient and cost-effective digital inclusive financial services. The transactions Linklogis served related to sustainable supply chains (including renewable energy, rural revitalization, environmental protection, intellectual property, etc.) reached RMB4.4 billion, increasing by 108% compared with that in the first half of 2022.
In the first half of 2023, Linklogis was certified as a “Specialized and Sophisticated Enterprise” in Shenzhen, and named “Guangdong Engineering Technology Research Center of 2022.” Besides, Linklogis received many awards such as “2022 Outstanding Supply Chain Finance Solution Provider” from the Asian Economic Conference and “Best Digital Solution – Supply Chain” in 2023 from The Asset.
“Looking ahead to the second half of the year, Linklogis will seize the opportunities in the supply chain finance technology market, make progress on the construction of treasury platform, optimize internal resource allocation, and improve operational efficiency. In the future, we will continuously expand our customer base and gain market share while deeply exploring the needs of our existing customers. We will strike a balance between short-term and long-term returns, continue to implement cost reduction and efficiency improvement initiatives, and focus more on driving quality growth.” Song Qun, the founder, chairman of the board and CEO of Linklogis, said.