LC Group (2490) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 57.2% YoY to RMB1,946.4m; profit attributable to owners reached RMB395.8m and basic EPS was RMB1.38.

• Reported profit for the year increased to RMB401.0m from RMB119.6m, with vessel-disposal gains materially boosting other income and gains.

Financial highlights

• Revenue increased 57.2% YoY to RMB1,946.4m; cost of sales rose 71.6% to RMB1,736.3m.

• Gross profit fell 7.3% to RMB210.1m; gross margin declined to 10.8% from 18.3%, reflecting lower time-charter rates.

• Profit before tax rose 231.3% to RMB406.5m; profit for the year rose 235.3% to RMB401.0m.

• Impairment losses on financial assets increased to RMB33.7m from RMB2.4m, mainly due to higher allowances for trade and other receivables.

Outlook and guidance

• 2025 outlook targets steady revenue growth through self-operated routes, engineering logistics and overseas warehousing; profitability focus includes cost control and operating efficiency.

• Plans include expanding self-operated routes in regions such as the Americas, growing EPC/project logistics and building an integrated cross-border e-commerce logistics offering.

• Time-charter strategy calls for adjusting rental rates, broadening leasing services and improving vessel utilization and yield.

• Green-shipping plans include introducing new-energy vessels, optimizing the fleet’s energy mix and adopting low-carbon technologies.