KLN Delivers Sustained Growth in Revenue and Core Net Profit

HONG KONG, Aug. 28, 2026 /PRNewswire/ -- KLN Logistics Group Limited ('KLN' or together with its subsidiaries, the 'Group'; Stock Code 0636.HK) today announced the Group's interim results for the six months ended 30 June 2026.

Group's Financial Highlights and Dividend

• Revenue grew by 10% year-on-year to HK$29,851 million (2025 1H: HK$27,211 million)
• Core operating profit dropped by 8% to HK$1,236 million (2025 1H: HK$1,348 million)
• Core net profit increased by 2% year-on-year to HK$695 million (2025 1H: HK$681 million)
• Profit attributable to the Shareholders achieved a 4% growth, amounted to HK$674 million (2025 1H: HK$648 million)
• Integrated Logistics ('IL') business recorded a segment profit of HK$665 million (2025 1H: HK$713 million), which represents a drop of 7%
• International Freight Forwarding ('IFF') business recorded a segment profit of HK$855 million (2025 1H: HK$919 million), which represents a drop of 7%
• Interim dividend of 12 HK cents per Share to be payable on or around Friday, 25 September 2026

Vic Cheung, Executive Director and CEO of KLN, said, "Geopolitical tensions, tariff uncertainty and uneven economic conditions in major markets continued to shape global trade and supply chains in the first half of 2026. The 'China Plus One' strategy and supply chain diversification continued to drive sourcing and production shifts across Asia, while technology reshoring and continued investment in AI infrastructure supported volume from Asia to the US. Against this backdrop, the Group delivered sustained growth in revenue and core net profit, supported by enhanced service offerings, customer-focused solutions and disciplined financial management, including treasury optimisation and effective tax management."

Integrated Logistics

The Group's IL division recorded a 19% year-on-year increase in revenue (before elimination), driven by significant new account wins in Hong Kong and the Chinese Mainland. Segment profit declined by 7% primarily due to customer-driven rate reductions, inventory destocking and higher fuel costs.

In Hong Kong, the IL business revenue (before elimination) increased by 26% year-on-year. Growth was driven by approximately 60 new customer wins during the period. The healthcare sector delivered solid growth, supported by additional distributorship contracts, while the construction logistics business began contributing to performance.

In the Chinese Mainland, the IL business recorded a 19% year-on-year increase in revenue (before elimination), underpinned by strong business development efforts and the introduction of new service offerings including cold chain and commodity transportation. Growth was further supported by improved activity in high-tech manufacturing and exports. While consumer spending remained soft in the retail and food & beverage sectors, the Group continued to benefit from new business wins and expanded market presence.

In the rest of Asia Pacific, the IL business revenue (before elimination) increased by 8% year-on-year. Several markets delivered strong growth, including Malaysia, Vietnam and Cambodia, benefitting from the "China Plus One" strategy, supply chain diversification and infrastructure investments. KLN Seaport in Thailand also recorded double-digit growth.

International Freight Forwarding

The Group's IFF division recorded a 12% year-on-year increase in revenue (before elimination) during the period, propelled by strong volume growth across air and ocean freight activities. Nevertheless, segment profit declined by 7% due to competitive market pressures. In addition, higher fuel costs could not be fully passed on to customers as the Group placed its priority on maintaining customer relationships.

Air freight volumes handled by the IFF division recorded solid mid-teens growth, led by the Chinese Mainland and Europe, with North America posting the strongest growth among major trade lanes. Growth was also supported by the strong performance of the General Sales Agent (GSA) business. The Group outperformed the market, with all key trade lanes delivering double-digit growth attributable to new customer acquisitions across most verticals. Demand for AI infrastructure on the Asia-US corridor remained robust.

Ezhou Shunjia Aviation Ground Service Co., Ltd., which provides ground handling services for international flights at Ezhou Airport in Central China, contributed HK$212 million in revenue in the first half of 2026. With ground handling volume increasing by 11.8% year-on-year to more than 3,500 flights, air freight ancillary services have become an important growth driver for the Group's IFF business in the Chinese Mainland.

Ocean freight volumes handled by the IFF division also posted strong mid-teens growth, underpinned

by rising exports from Asia, supply chain diversification and tariff-driven front-loading of shipments. The Group remained the global No.1 Trans-Pacific NVOCC on the Asia-US trade lane during the period while growing its presence in Asia-Europe and intra-Asia trades.

The KLN Project business recorded revenue of approximately HK$1.9 billion in the first half of 2026, compared with HK$1.7 billion in the corresponding period last year. Revenue growth was driven by the continued execution of the Group's Engineering, Procurement and Construction (EPC) projects, together with steady growth in its traditional project logistics business. Segment profit also increased year-on-year.

Vic Cheung concluded, "Looking ahead to the second half of 2026, the current operating environment is expected to persist amid ongoing geopolitical tensions, tariff uncertainty and evolving global trade patterns. Under KLN 2.0, we will continue to invest in commercial capabilities, digitalisation, technology and network development to strengthen the Group's growth prospects over the longer term. The commercial pipeline remains healthy in both IL and IFF businesses. Overall, the Group remains cautiously optimistic about its growth prospects for the remainder of the year. Leveraging our global network, diversified service portfolio and ongoing KLN 2.0 transformation initiatives, the Group is well positioned to support customers in navigating an increasingly complex operating environment while pursuing sustainable long-term growth."

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About KLN Logistics Group Limited (Stock Code 0636.HK)

KLN is an Asia-rooted, global 3PL delivering customer-centric, end-to-end supply chain solutions that connect markets and power global trade, as a trusted partner to many of the top 100 global brands and Fortune Global 500 companies across a wide spectrum of industries. With a presence across 59 countries and territories, KLN offers integrated logistics, international freight forwarding, e-commerce and industrial project logistics solutions. KLN has been the global No. 1 Trans-Pacific NVOCC from Asia to the US since 2023 and ranks No. 20 among Global 3PLs (Armstrong & Associates, 2026). Listed on the Hong Kong Stock Exchange, KLN generated revenue* of over HK$56 billion in 2025 and is a constituent of the Hang Seng Corporate Sustainability Benchmark Index. Learn more at www.kln.com 

* For continuing operations only

SOURCE KLN Logistics Group Limited