ANE (09956) announces a profit increase is expected in 2024 under non-Hong Kong Financial Reporting Standards, with profits expected to exceed 830 million yuan.

ANE (09956) announced that the group expects to achieve a non-Hong Kong financial reporting standard profit of not less than RMB 830 million in 2024, compared to approximately RMB 510 million in 2023. This increase is mainly attributed to a 16% increase in revenue to approximately RMB 9.917 billion and a 44% increase in gross profit to approximately RMB 1.268 billion for the year ending December 31, 2023. The announcement stated that the improvement in the company's financial performance during the period was mainly due to the comprehensive impact of the following factors: (i) strategic focus on improving operational efficiency and continuously enhancing service quality, implementing the "five best" objectives of "optimal cost, best quality, stable timeliness, fastest service response, and densest network coverage" to lay a structural foundation for sustainable development in the future; (ii) improving operational efficiency in distribution centers and freight networks through further lean management, reducing costs and maintaining product competitiveness; and (iii) continuously improving the network ecosystem through upgrading training of freight cooperation partners and agents and digital systems to cultivate long-term sustainable profitability for CKH HOLDINGS. These factors collectively had a significant positive impact on the company's freight volume, revenue, and unit costs, leading to a continuous improvement in profit levels.