On March 29, 2022, Linklogis Inc. (09959.HK) released its 2021 annual results. During the reporting period, the company’s total revenue was RMB1.2 billion. The adjusted profit was RMB290 million, a year-over-year increase of 50.4%; the total transaction volume reached RMB258.3 billion, a year-over-year increase of 50.7%. The number of customers maintained rapid growth, and the gross profit margin increased significantly, from 61.3% in 2020 to 77.4% in 2021, as the product structure continued to be optimized.
Linklogis innovates supply chain finance through technology solutions to promote the harmonious development of the entire supply chain ecosystem. In 2021, Linklogis served 679 anchor enterprises, covering 36 of the Top 100 Companies in China, and has established partnerships with 291 financial institutions. The company’s Supply Chain Finance Technology Solutions maintained a high customer retention rate of 97%. By the end of 2021, over 140,000 SMEs have been served by Linklogis.
The Supply Chain Finance Technology Solutions of Linklogis include AMS Cloud and Multi-tier Transfer Cloud under the Anchor Cloud, as well as ABS Cloud and eChain Cloud under the FI Cloud. In 2021, the total volume of supply chain assets processed by Anchor Cloud reached RMB129.6 billion, with 113 new anchor enterprise customers. In the Multi-tier Transfer Cloud segment, the total volume of supply chain assets processed by Linklogis in 2021 was RMB49.8 billion, up 166.7% year-over-year. Linklogis successfully acquired premium anchor enterprise customers or partners including China Energy, China Railway Construction, Xuzhou Construction Machinery Group, China Chemical Engineering Group, Dongfeng Motor, Zijin Mining, and etc.
In the FI Cloud segment, the total volume of supply chain assets processed by Linklogis in 2021 was RMB118.8 billion, up 115.5% year-over-year. In 2021, Linklogis acquired 50 new financial institution customers, while its major customers also extended from commercial banks, securities companies, and trust companies to wealth management subsidiaries of banks, asset management subsidiaries of insurance companies, etc. Remarkably, the eChain Cloud has processed supply chain assets totaling RMB71.8 billion, up 241.0% year-over-year.
By the end of 2021, Linklogis has established partnerships with 6 state-owned commercial banks and 7 joint-stock commercial banks through eChain Cloud or Multi-tier Transfer Cloud. While actively acquiring new customers, Linklogis further increased the branch level coverage of its existing commercial bank customers, and extended product lines to financial institutions’ business development, market opportunity analysis, and precision marketing, assisting financial institutions in systematic management and structural analysis of mass customer information and diversified data.
In the Cross-border Cloud segment, Linklogis has cooperated with more than 29 anchor enterprises and 39 financial institutions, along with suppliers located in 27 countries and regions by the end of 2021. The total volume of supply chain assets processed by Linklogis Cross-border Cloud in 2021 was RMB8.0 billion, up 59.4% year-over-year. In the second half of 2021, the Cross-border Cloud was officially connected to Amazon’s cross-border e-commerce platform, enabling cross-border e-commerce enterprises to connect to financial institutions and complete the credit granting and financing process online efficiently.
Noticeably in international expansion, Linklogis assisted GLL Bank, one of the two financial institutions that received the first batch of digital wholesale banking licenses issued by the Monetary Authority of Singapore, in building a digital cross-border trade system based on international architecture and low-code components, supporting multi-lingual and multi-modal system interactions. In the second half of 2021, Linklogis announced a joint venture with Standard Chartered to launch Olea, a leading international trade financing platform powered by blockchain, to connect global financial institutions and institutional investors. According to the annual report, the solution set-up and technology infrastructure were largely completed in 2021, laying the foundation for Olea to launch in 2022.
Linklogis continued to strengthen investment in R&D and technology infrastructures. In 2021, the company’s R&D expenses rose to RMB277 million, accounting for 43.8% of all operating expenses, with 65% of the total workforce engaged in technology-related work. In the past year, Linklogis has won several technical competition awards and participated in advancing industry standards, representing acknowledgment of its technical capabilities.
“Capturing the opportunities brought by the supply chain finance digitalization and cutting-edge technology, Linklogis will keep investing in innovation and expanding product portfolio. Through our leading technology capabilities and digital solutions, along with our close relationships with anchor enterprises and financial institutions, we can provide one-stop supply chain finance technology solutions, empowering efficient financing for SMEs. We will also continue incorporating environmental, social, and corporate governance considerations into our product and growth strategies to achieve sustainable development.” Mr. Song Qun, Founder, Chairman and CEO of Linklogis, commented.