On October 23, 2024, Linklogis Inc. (09959.HK, “Linklogis”) released its trading update for the third quarter of 2024. In THE third quarter of 2024, the total volume of transactions processed by Linklogis technological solutions reaches RMB105 billion, an increase of 18% per yearworm-year of growth, with the quarter trading volume surpassing RMB100 billion for the first time, setting a new historical record. The company‘The company’s primary growth engine, the Multi-tier Transfer Cloud, continued to excel, processing a total volume of RMB supply chain assets.47.7 billion, a year-over-year increase of 29%. Additionally, ABS Cloud regained its growth momentum by launching new products, achieving an impressive 325% growth despite a challenging overall market environment.
Linklogis is dedicated to high-quality development, prioritizing improving efficiency and quality in its core business. Linklogis continues to diversify its customer base while strategically optimizing its commercial structure by reducing low-margin product lines. In the third trimester, Linklogis‘ the turnover and results of the main activities are up year-on-year, accompanied by a notable improvement in the gross margin margin.
By focusing on developing its core business, ABS Cloud achieves 325% growth against market trends
In the third quarter of 2024, the total transaction volume processed by Linklogis technology solutions reached RMB 105 billion, an increase of 18% year-on-year. In this context, Anchor Cloud treated supply chain assets amounting to RMB 64.4 billion, up 13% year-on-yearworm-year, while FI-Cloud manipulated supply chain assets totalizing RMB34.6 billion, an increase of 16%. Driven by a focused investment in his heart businessthe Multi-tier Transfer Cloud within the Anchor Cloud has experienced robust growth, processing supply chain assets totaling RMB47.7 billion, an increase of 29% compared to the previous yearworm-year. Additionally, ABS Cloud within FI Cloud has successfully launched new products to meet the growing demand for diversified asset allocation in the current low interest rate environment. This initiative extended services from upstream payable assets to downstream receivable assets, resulting in an impressive number of trading volume of RMB22 billion for ABS Cloud in the third quarter, reflecting a remarkable 325% year-over-year increasewormYear-long growth and success despite market challenges.
In the third quarter of 2024, Linklogis successfully won tenders For the development of supply chain financinge service platform for Yangtze River Industry Investment Group and Genertec Universal Medical Group. In addition, Linklogis has partnered with several big enterprises and financial institutions, including Shandong Binzhou Urban Construction Group, Huayuan Landport Capital Operation, Hubei Wanchuan State-owned Capital Investment and Operation Group, Changsha Broad Homes Industrial Group, Huaxia Bank and China Bohai Bank, to collaborate in supply chain financinge technology sector and launch the first batch of multi-projectslevel transfer businessare.
Linklogis accelerated its acquisition of high-quality customers in the third quarter, adding 103 new customers and 184 partners, bringing the total number of customers at 959 and a total of partners at 2,270. This includes 1,917 anchor businesses and 353 financial institutions. Notable novelty anchor business customers include Wahaha Group, Jingye Group, Shanghai Electric Group, Yunnan Provincial Investment Group and Yangtze River Pharmaceutical Group. Linklogis continues to expand and optimize its customer base, focusing on key sectors such as infrastructure, construction, renewable energy and utilities, achieving a remarkable retention rate of 96%.
Acquisition of Bytter to advance treasury development
According to the announcement on October 29, 2024, Linklogis officially signed a share acquisition agreement with the current majority shareholder of Shenzhen Bytter Technology Co., Ltd. (“Bytter”) for the acquisition of 29.38% of its shares. Once the acquisition is finalized, Linklogis’ total stake will increase to 54.38%, which makes it the majority shareholder of Bytter. Both companies will enhance their product offerings by integrating their core strengths in fund management and supply chain finance.e technology. Together, they aim to support public enterprises as well as big And mid-sized private companies in building a world-class financial management platform. Linklogis will combine external mergers and acquisitions with internal growth to open a new chapter in the development of intelligent technologies industry-financial treasury solutions.
Linklogis is dedicated to improving shareholder returns through active share buybacks. By the end of the third quarter of 2024, the company had repurchased 142 million shares for approximately HK$280 million. Going forward, Linklogis will continue to monitor market trends, seize growth opportunities and focus on its sustainable, high-growth core businesses. Linklogis aims to maintain rapid customer acquisition while steadily advancing technological innovation and service expansion, striving to create long-term value for customers and investors.
