KLN Posts Continued Growth in Core Net Profit

APAC - English

• APAC - Traditional Chinese

Outperforming the Industry Average

HONG KONG, March 30, 2026 /PRNewswire/ -- KLN Logistics Group Limited ('KLN' or together with its subsidiaries, the 'Group'; Stock Code 0636.HK) today announced the Group's annual results for 2025.

Group's Financial Highlights* and Dividend

• Revenue dropped by 3% to HK$56,336 million (2024: HK$58,274 million)
• Core operating profit decreased by 4% to HK$2,627 million (2024: HK$2,725 million)
• Core net profit increased by 3% to HK$1,396 million (2024: HK$1,357 million)
• Profit attributable to the Shareholders was HK$1,411 million, which represents an increase of 7% (2024: HK$1,321 million)
• Integrated Logistics ('IL') business recorded a segment profit of HK$1,262 million (2024: HK$1,251 million), which represents a slight increase of 1%
• International Freight Forwarding ('IFF') business recorded a segment profit of HK$1,874 million (2024: HK$1,950 million), which represents a drop of 4%
• Proposed final dividend of 16 HK cents per Share to be payable on or around Monday, 8 June 2026

Vic Cheung, Executive Director and CEO of KLN, said, "Global economic conditions stayed subdued in 2025 as policy uncertainty, elevated tariffs and persistent geopolitical tensions continued to weigh on worldwide growth. Against this backdrop, KLN navigated the full year with resilience and agility, enabling the Group to record continued growth in core net profit, outperforming the industry average again. To fulfil KLN's long-term purpose and stay ahead in a rapidly changing logistics landscape, we launched the KLN 2.0 transformation in 2025 Q4, a customer-centric transformation plan to achieve accelerated growth. It will enable the Group to serve multinational corporations with greater integration, consistency and strategic relevance."

Integrated Logistics
In 2025, the Group's IL business recorded a similar segment profit as the prior year despite the difficult operating environment. The key markets of Hong Kong and the Chinese Mainland continued to face keen industry competition alongside significant shifts in consumption patterns. The Group offset pressure on performance by capitalising on growth in other Asian markets and strengthening cost control measures across its network.

In Hong Kong, the IL business reported a 7% decrease in segment profit, due to market competition, shifting consumption patterns and rising price sensitivity among both visitors and local consumers. Although the division secured new customers and project wins in the construction, pharmaceutical and healthcare sectors, these gains were not sufficient to offset the broader slowdown. The relocation of key customers' operations to Qianhai, Shenzhen also weighed on performance.

In the Chinese Mainland, the IL division reported an 11% decline in segment profit, as consumer sentiment stayed weak amid a sluggish economy. Heightened industry competition and continued partial or complete relocation of supply chains under the "China Plus One" strategy reduced domestic logistics activity. To mitigate pressure on business performance, the Group undertook rightsizing and streamlining efforts. This, together with the adoption of AI to optimise financial and operational processes, strengthened cost discipline.

In the rest of Asia, the Group's IL division recorded a 23% increase in segment profit, representing the key growth driver in 2025. Tariff uncertainty and cost considerations accelerated corporations' shift of supply chain activities from the Chinese Mainland to neighbouring markets, particularly in South and Southeast Asia. Leveraging its solid presence and strategic assets in the region, the Group captured new businesses from stable market growth as well as satisfactory performance from KLN Seaport in Thailand.

International Freight Forwarding
In 2025, the Group's IFF division prioritised maintaining optimal volume and disciplined receivables management, resulting in a slight decline in volume and a 4% decrease in segment profit.

As the global No.1 Trans‑Pacific NVOCC from Asia to the US, the IFF division quickly capitalised on the demand surge that followed the temporary suspension of the elevated tariff by providing customers with secured space and expedited services. It also benefited from rising demand along alternative Asia-Europe and Intra-Asia corridors, which maintained more stable momentum amid global supply chain diversification.

Driven by the execution of the Engineering, Procurement and Construction (EPC) projects and the revival of the traditional industrial project logistics market, KLN Project business under the Group's IFF division recorded HK$3.8 billion in revenue in 2025 and contributing a significant segment profit in the EMEA region.

The joint venture between the Group and S.F. Holding, which provides ground handling services for international flights at Ezhou Airport in Central China, contributed HK$387 million in revenue in 2025. With ground handling volume rising 75% year-on-year following the expansion of the international cargo terminal to 420,000 sq ft, air freight ancillary activities have become an important growth driver for the Group's IFF business in the Chinese Mainland.

Looking ahead, Vic Cheung said, "The business environment in 2026 is expected to remain volatile and complex, shaped by ongoing geopolitical rivalry and continued uncertainty over tariff-related policies. Notably, the escalation of geopolitical tensions in the Middle East since late February has intensified trade disruption, which may dampen global consumption demand and economic growth. Under the new KLN 2.0 initiative, the Group is focused on doubling its business scale by driving rapid growth across network coverage, customer base and shipment volume in the near term. In the medium term, the Group will upgrade and scale its service capabilities globally to distinguish itself as one of the top 10 global supply chain players. In the long term, the Group aims to firmly establish itself as a global top 5 industry player, defined not only by scale but also by innovation, ecosystem leadership and sustainable value creation. The Group will continue strengthening its stakeholder ecosystem – balancing the needs of shareholders, employees, partners, society, government and the environment, with the customer at the centre."

About KLN Logistics Group Limited (Stock Code 0636.HK)
KLN is an Asia-based, global 3PL with a highly diversified business portfolio and extensive coverage in Asia. It offers a broad range of supply chain solutions from integrated logistics, international freight forwarding (air, ocean, road, rail and multimodal) and e-commerce to industrial project logistics and infrastructure investment.

With a global presence across 58 countries and territories, KLN has established a solid foothold in half of the world's emerging markets. Its diverse infrastructure, extensive coverage in international gateways and local expertise span across the Chinese Mainland, India, Southeast Asia, the CIS, Middle East, LATAM and other locations.

KLN generated a revenue* of over HK$56 billion in 2025. It is listed on the Hong Kong Stock Exchange and is a constituent of the Hang Seng Corporate Sustainability Benchmark Index.

SOURCE KLN Logistics Group Limited