FAR International Holdings Group Company (2516) H1 2025 earnings summary

Executive summary

• H1 revenue fell 43.4% YoY to RMB808.2m as U.S. tariff changes reduced shipments; the period swung to a RMB14.5m net loss from RMB38.1m profit.

• Gross margin improved to 9.1% from 7.3%, but gross profit declined 29.7% to RMB73.7m; receivables and goodwill impairments further pressured results.

Financial highlights

• Revenue was RMB808.2m versus RMB1,428.0m; cost of sales fell 44.5% to RMB734.5m and gross profit declined 29.7% to RMB73.7m.

• Loss before tax was RMB14.8m versus profit before tax of RMB40.0m; loss attributable to owners was RMB14.35m, with basic and diluted loss per share of RMB1.85 cents.

• Impairment losses included RMB18.1m on goodwill and RMB14.4m on trade and other receivables, versus RMB7.4m receivables impairment in H1 2024.

• Finance costs rose 25.5% to RMB9.7m; other income, gains and losses improved to a net loss of RMB5.2m from RMB9.2m, mainly on lower exchange losses.

Outlook and guidance

• Short-term PRC cross-border e-commerce and logistics growth is expected to slow amid U.S. tariffs; the market is projected to reach RMB5.7tn by 2029, with a 7.3% CAGR from 2024 to 2029.

• Priorities include deeper platform partnerships, expanding service capacity and overseas logistics infrastructure, and greater investment in AI-enabled technology and digital operations.

• Management plans to monitor U.S. tariff policy, pass relevant costs to customers, optimize routes, pursue emerging markets and strengthen overseas warehouses, customs clearance and last-mile delivery.

• Goodwill assessment assumptions forecast revenue declining 17.1% in H2 FY2025, followed by recovery of 2.0%–2.5% from FY2026.