HONG KONG SAR - Media OutReach - 27 August 2021 - Kerry Logistics
Network Limited ('Kerry Logistics Network' or together with its subsidiaries, the 'Group' or 'KLN Group'; Stock Code 0636.HK) today announced
the Group's interim results for the six months ended 30 June 2021.
- Revenue increased
by 68% year-on-year to HK$36,709 million (2020 1H: HK$21,885 million)
- Core operating
profit increased by 70% to HK$2,536 million (2020 1H: HK$1,489 million)
- Core net profit
jumped by 81% year-on-year to HK$1,530 million (2020 1H: HK$845 million)
attributable to the Shareholders for 2021 1H was HK$3,380 million (2020 1H:
- Integrated Logistics ('IL') business recorded a segment profit of HK$1,292 million (2020 1H: HK$1,139
million) and International Freight Forwarding ('IFF') business recorded HK$1,437 million (2020 1H: HK$379 million), which
represent an increase of 13% and 279%, respectively
- Interim dividend
of 21.1 HK cents per Share, to be payable on Tuesday, 28 September 2021
William MA, Group Managing
Director of Kerry Logistics Network, said,
"The COVID-19 pandemic has entered into a new phase with the worldwide spread
of the Delta variant, which has been severely affecting global and domestic
supply chains and disrupting business operations at different levels around the
world. These disruptions and capacity chokeholds, together with different
government approaches and restrictions in tackling the pandemic, have compelled
the logistics industry to move towards a growing focus on service
customisation. Leveraging our core competency in providing highly customised
solutions, KLN Group capitalised on the opportunities in this new environment
and achieved record growth in both revenue and core net profit in 2021 1H."
The IL business reported a 13% segment profit growth, mainly
riding on a booming manufacturing sector in Mainland China.
In Hong Kong, the warehousing business grew 18% backed by a higher
occupancy. The logistics operations business increased by 9% as the pandemic
remained largely under control since 2021 Q2.
In Mainland China, the IL business continued its rebound in 2021
1H, expanding by 82% year-on-year in segment profit. This was supported by the
accelerated resumption of production, revived domestic consumption and thriving
In Taiwan, the segment profit for the IL division maintained
stable with a 5% growth.
In Asia, the IL division suffered a drop of 12% in segment profit
as the pandemic continued to rumble across the region with prolonged lockdowns,
restrictions and quarantine measures.
IFF business recorded a 279% segment profit growth in 2021 1H, mainly riding on
the change in consumer behaviour and strong exports from Mainland China to the
IFF business is experiencing a rapidly changing market and the Group is
adjusting its strategy on a monthly basis depending on the development of
COVID-19 pandemic, as well as unpredictable events.
The air freight sector continued to operate
with scarce international belly cargo capacity provided by passenger aircraft,
prompting the market to rely on freighters of limited space, which resulted in
serious fluctuation in air freight capacity and rates.
In the ocean
freight sector, congestion in destination ports has caused severe delays to
vessel turnaround time and exacerbated the container equipment shortage in
Asia. Currently, there are still huge backlogs in Mainland China where plenty
of cargo vessels destined for the Americas and Europe were cancelled or
Proposed Strategic Investment from S.F. Holding
the completion of S.F. Holding's investment in the Group, the Group's profit
will have a significant adjustment in light of the disposal of the Hong Kong
warehouse and the Taiwan businesses to Kerry Holdings Limited.
cooperation will bring together the core competencies of S.F. Holding and the
Group across multiple verticals to create a leading Asia-based global logistics
platform to meet ever-changing demands.
William Ma concluded, "With no end to the pandemic in
sight, KLN Group will continue to support our customers counter various supply
chain challenges through customised and comprehensive solutions across major
gateways. We are also ready to capture the growing opportunities in the booming
and evolving e-commerce business. Meanwhile, our ongoing efforts in
humanitarian logistics will expand our service capabilities to assist in
disaster relief operations. Moving forward, the Group will further strengthen
our product offerings to navigate a highly inefficient and volatile global