Linklogis Reports Record Q3 Transaction Volume, Expands into Treasury Management

Linklogis Inc. (09959.HK) has reported unprecedented growth in its third quarter 2024 results, with total transaction volume processed by its technology solutions reaching RMB105 billion, an 18% year-over-year increase. This milestone marks the first time the company's quarterly transaction volume has surpassed the RMB100 billion threshold, underscoring Linklogis' strengthening position in the supply chain finance technology sector.

The company's core business, the Multi-tier Transfer Cloud, demonstrated robust performance with a 29% year-over-year increase, processing supply chain assets totaling RMB47.7 billion. Notably, the ABS Cloud segment exhibited exceptional growth, achieving a 325% year-over-year increase despite challenging market conditions, processing RMB22 billion in transaction volume.

Linklogis' strategic focus on high-quality development is evident in its improved gross profit margin and year-on-year growth in revenue and income from principal activities. The company has successfully expanded its customer base, adding 103 new customers and 184 partners in the third quarter, bringing its total to 959 customers and 2,270 partners, including 1,917 anchor enterprises and 353 financial institutions.

In a significant move to enhance its service offerings, Linklogis announced the acquisition of a 29.38% stake in Shenzhen Bytter Technology Co., Ltd., which will increase its total shareholding to 54.38%. This strategic acquisition positions Linklogis to integrate its supply chain finance expertise with Bytter's fund management capabilities, aiming to create a comprehensive financial management platform for state-owned and large to medium-sized private enterprises.

The company's expansion into treasury management through the Bytter acquisition signals a new phase in Linklogis' growth strategy, combining external acquisitions with internal development to advance its smart industry-finance treasury solutions. This move is expected to strengthen Linklogis' competitive edge in the financial technology sector and broaden its service portfolio.

Linklogis' impressive performance and strategic initiatives have significant implications for the supply chain finance and treasury management industries. The company's ability to achieve substantial growth in a challenging economic environment demonstrates the increasing demand for innovative financial technology solutions. As Linklogis continues to expand its services and customer base, it is poised to play a pivotal role in shaping the future of financial management for enterprises across various sectors.

The company's focus on key industries such as infrastructure, construction, renewable energy, and public utilities aligns with broader economic trends and government priorities, potentially positioning Linklogis to benefit from and contribute to national development initiatives. Furthermore, the high customer retention rate of 96% suggests strong satisfaction with Linklogis' services, indicating potential for sustained growth and market leadership.

As Linklogis advances its technological innovation and service expansion, the company's progress will be closely watched by investors, competitors, and industry analysts. The success of its integrated supply chain finance and treasury management offerings could set new standards for financial technology solutions in the corporate sector, potentially influencing industry practices and regulatory frameworks.

With its continued focus on sustainable high-growth core businesses and strategic acquisitions, Linklogis is well-positioned to capitalize on the growing demand for sophisticated financial management tools. The company's performance in the coming quarters will be crucial in determining whether it can maintain its growth trajectory and solidify its position as a leader in the evolving landscape of financial technology and supply chain finance.