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Linklogis Expects First-Half Loss Due to Weak Macroeconomic Environment

James L. Flint

• August 21, 2023

By Sherry Qin

Shares of Linklogis plummeted on Monday as the company announced an anticipated first-half loss, citing a weak macroeconomic environment as one of the contributing factors.

The stock saw a decline of 17% to 2.11 Hong Kong dollars (US$0.27), bringing its year-to-date loss to 44%.

In an exchange filing released after Friday's market close, the supply-chain financing service provider stated that it expects a net loss between 165 million yuan (US$22.7 million) and CNY175 million, compared to a profit of CNY43 million the previous year. Additionally, the company projects a 23% decrease in first-half revenue.

Linklogis, based in Shenzhen, attributed the expected loss to the adverse effects of the weak macroeconomic environment, which has resulted in sustained pressure for some of its customers. The company also pointed to its implementation of new pricing and sales strategies in response to changing market conditions, as well as higher impairment loss on financial assets, as contributing factors to the projected loss.

Nevertheless, Linklogis stated its commitment to expanding its market share and acquiring new customers. "The group is taking proactive measures to address both internal and external challenges in its operations. The board and management remain confident in the long-term growth prospects of the group," said the company.