KLN reports 7% revenue growth, 12% profit rise in first half 2025

KLN Logistics Group (KLN) has released its interim financial results for the six months ending 30 June 2025.

The Group reported revenue of HK$27,211 million for the first half of 2025, up 7 percent from HK$25,432 million in the same period of 2024. Core operating profit rose 12 percent to HK$1,348 million, compared with HK$1,200 million last year, while core net profit also increased 12 percent to HK$681 million from HK$606 million.

In the first half of 2024, the Group booked a one-off gain from the distribution and cessation of its express operations. Excluding this, profit attributable to shareholders in 2025 surged 34 percent to HK$648 million, against HK$485 million a year earlier.

By segment, Integrated Logistics recorded a profit of HK$713 million, up 5 percent from HK$681 million in 2024, while International Freight Forwarding posted HK$919 million, a 22 percent increase from HK$752 million.

The Group has declared an interim dividend of 11 HK cents per share, payable on or around September 23, 2025.

“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,” says Vic Cheung, Executive Director and CEO of KLN.

In the first half of 2025, KLN’s Integrated Logistics business recorded a 5% increase in segment profit. Despite the challenging conditions in its two core markets, Hong Kong and Mainland China, the Group was able to offset the decline by tapping growth in other Asian markets and strengthening cost control measures across its network.

In Hong Kong, the segment profit of the Integrated Logistics 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 Mainland China, the Integrated Logistics division posted a 5% decline in segment profit, mainly driven by weak domestic B2B demand, intensified industry competition, and the impact of the ‘China Plus One’ strategy, which prompted many corporations to shift all or part of their supply chains to other countries and regions.

In the rest of Asia, the Group’s Integrated Logistics division benefitted 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.

In the first half of 2025, KLN’s International Freight Forwarding (IFF)business achieved a 22% increase in segment profit, despite highly disruptive market conditions. The growth was driven by 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, the release added.

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 Ezhou Airport, doubled its business scale in the first half of 2025, contributing over HK$180 million in revenue.

Vic Cheung concludes, “As 2025 2H unfolds, the global economy continues to navigate persistent uncertainty. Nevertheless, we expect our Integrated Logistics 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.”