KLN posts double-digit growth in core net profit outperforming the market

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(L-R) Vic Cheung, Executive Director and CEO, KLN and Ellis Cheng, Executive Director and CFO, KLN announcing the 2025 interim results.

KLN Logistics Group Limited has announced the Group’s interim results for the six months ended 30 June 2025.

Group’s Financial Highlights

  • Revenue grew by 7% year-on-year to HK$27,211 million (2024 1H*: HK$25,432 million)
  • Core operating profit increased by 12% to HK$1,348 million (2024 1H*: HK$1,200 million)
  • Core net profit also increased by 12% year-on-year to HK$681 million (2024 1H*: HK$606 million)
  • Excluding the one-off gain on distribution/cessation of the Group’s express operations in 2024 1H, Profit attributable to the Shareholders achieved a 34% growth in 2025 1H, amounting to HK$648 million (2024 1H: HK$485 million)
  • Integrated Logistics (‘IL’) business recorded a segment profit of HK$713 million (2024 1H*: HK$681 million), which represents an increase of 5%
  • International Freight Forwarding (‘IFF’) business recorded a segment profit of HK$919 million (2024 1H*: HK$752 million), which represents a growth of 22%
  • Interim dividend of 11 HK cents per Share to be payable on or around Tuesday, 23 September 2025

* For continuing operations only

Vic Cheung, Executive Director and CEO of KLN, said, “In 2025 1H, rapid shifts in trade policies challenged and reshaped the global logistics industry, leading to high volatility in freight rates. Against this backdrop, KLN withstood the shocks leveraging its diversified business portfolio and customer mix alongside its solid presence in the Southeast Asian region. Our agile response to rapidly changing market conditions and its commitment to supporting our customers’ evolving business needs enabled us to outperform the market, demonstrated by a 7% increase in revenue and a 12% growth in core net profit in 2025 1H.”

Integrated logistics
In 2025 1H, the segment profit of KLN’s IL business recorded a 5% increase. Notwithstanding the tough operating environment in the two key markets, Hong Kong and the Mainland of China, the Group was able to offset the segment profit drop by capitalising on growth in other Asian markets and strengthening cost control measures across the network.

In Hong Kong, the segment profit of the IL business division declined by 7% as changing consumption patterns of local citizens and tourists have adversely impacted Hong Kong’s F&B and retail sectors. Moreover, a few key accounts relocated the majority of their warehouse operations to Qianhai in Shenzhen to reduce overall operating costs.

In the Mainland of China, the segment profit of the IL division reported a drop of 5%, primarily due to subdued domestic B2B demand, heightened industry competition and the “China Plus One” supply chain strategy which drove more corporations to relocate all or part of their supply chains to other countries or regions.

In the rest of Asia, the Group’s IL division benefited from new business demands driven by increasing manufacturing activities as well as satisfactory performance of KLN Seaport in Thailand and the stable growth in South Asia, recording a 27% increase in segment profit.

International freight forwarding
|n 2025 1H, despite the highly disruptive market conditions, KLN’s IFF business reported a 22% growth in segment profit, leveraging its diversified product portfolio across sectors and trade lanes.

As the No.1 Trans-Pacific NVOCC (from Asia to the US), the Group’s IFF business was severely impacted by the turbulent US-China trade environment. However, the Group leveraged the opportunity by providing secured capacity and expedited services. The Group also capitalised on rising demand across alternative trade lanes, notably the Asia-Europe and Intra-Asia corridors, which experienced stable growth amid supply chain shifts and tariff-driven realignments.

Driven by the execution of the EPC (Engineering, Procurement and Construction) project, and the revival of the traditional industrial project logistics market, KLN’s project logistics business under the IFF division recorded a revenue of HK$1.7 billion in 2025 1H, nearly matching the business’s full-year revenue in 2024.

The joint venture between KLN and S.F. Holding, which provides ground handling services for international flights at the Ezhou Airport, has doubled its business scale. In 2025 1H, the joint venture contributed more than HK$180 million in revenue.

Vic Cheung concluded, “As 2025 2H unfolds, the global economy continues to navigate persistent uncertainty. Nevertheless, we expect our IL business to improve in 2025 2H. Our IFF business remains highly sensitive to global geopolitical and trade dynamics. We will continue to closely monitor trade developments and proactively offer alternative multimodal solutions to support customers during challenging periods. Looking ahead, we remain cautious yet committed to navigating the challenges of a fast-changing logistics landscape. Continued focus on core strengths, particularly our deep expertise and solid presence in Asia, will be key to driving sustainable results and delivering long-term value to shareholders.”