LC Group (2490) investor relations material

Executive summary

• H1 2026 revenue fell 2.2% YoY to RMB884.7m, while profit for the period rose 32.8% to RMB169.7m, supported by non-recurring gains from vessel asset optimisation.

• Third-party cross-border shipping volume declined 6.9% to 183,519 TEUs amid intensified competition; average price per TEU rose with market freight rates.

• H2 priorities include engineering logistics, cross-border e-commerce and overseas warehousing, alongside route development, fleet efficiency and cost control.

Financial highlights

• Revenue was RMB884.7m, down 2.2% YoY; cost of sales rose 0.5% to RMB826.6m, while gross profit fell to RMB58.1m from RMB82.4m.

• Gross margin narrowed to 6.6% from 9.1%, reflecting reduced time-charter capacity; profit before tax increased 36.1% to RMB174.4m.

• Profit for the period rose 32.8% to RMB169.7m, including RMB159.0m attributable to owners; basic and diluted EPS was RMB0.28 versus RMB0.19.

• Other income and gains increased to RMB199.1m from RMB91.1m, including ~RMB152.5m of non-recurring gains from vessel asset optimisation.

• Operating cash flow was RMB3.1m versus RMB25.1m; cash and cash equivalents ended at RMB260.9m after a net decrease of RMB137.5m.

Outlook and guidance

• H2 priorities include growing African engineering logistics, expanding cross-border e-commerce and overseas warehousing, and pursuing Belt and Road infrastructure opportunities.

• Planned measures include improving feeder-vessel efficiency, developing shipping routes, expanding regional coverage and tightening cost controls to support growth and profitability.