FAR International Holdings Group Company (2516) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 45.8% YoY to RMB2.983bn; profit for the year increased to RMB69.21m from RMB26.95m, while profit attributable to owners reached RMB69.28m.

• Growth came mainly from freight forwarding and other logistics services, partly offset by lower end-to-end cross-border delivery revenue.

Financial highlights

• Gross profit increased 36.9% to RMB214.80m; gross margin eased to 7.20% from 7.67% as freight forwarding and other logistics margins weakened.

• Adjusted net profit, excluding FY2023 listing expenses of RMB27.98m, was RMB69.21m, up 26.0% from RMB54.93m.

• Other income, gains and losses swung to a RMB9.77m net loss from RMB1.09m net gains, primarily due to FX losses rising to RMB24.37m.

• Finance costs rose to RMB19.35m from RMB4.47m, mainly due to higher bank borrowings; impairment losses on trade and other receivables increased to RMB18.44m from RMB8.78m.

• Basic and diluted EPS increased to RMB8.88 cents from RMB4.32 cents.

Outlook and guidance

• 2025 priorities include deeper cooperation with leading e-commerce platforms, expansion or upgrades of service outlets, overseas logistics network development, and increased AI and technology investment.

• Cross-border e-commerce export volume in China is forecast to grow at a 16.40% CAGR from 2022 to 2025, reaching RMB10.00tn by 2025, supporting logistics demand.

• Remaining IPO proceeds of RMB47.32m were expected to be fully used by 30 June 2025, mainly for service outlets and IT systems.