LINKLOGIS-W (09959) issued a profit warning, expecting a net loss attributable to shareholders of approximately RMB 370 to 390 million for the midterm.

On August 15th, LINKLOGIS-W (09959) issued a profit warning announcement for the first half of 2025. The announcement indicated that the company expects a net loss attributable to equity shareholders of approximately RMB 370 million to 390 million for the period. At the same time, the announcement revealed that the group's cash reserves reached around RMB 5.4 billion, an increase of RMB 300 million from the end of 2024, and the company's overall liquidity remains stable. The announcement stated that the main cause of this loss was the impairment loss provision on bridge supply chain assets from the balance sheet based on expected credit loss models. It is reported that before 2023, large real estate developers were important client groups for LINKLOGIS's supply chain asset securitization business. As some real estate companies faced debt crises, the market became more cautious about related assets, leading to a prolonged retention of historical bridge assets on the company's balance sheet. GMTEight understands that bridge assets refer to original equity holders and asset service providers in supply chain asset securitization businesses. LINKLOGIS sometimes temporarily holds clients' accounts receivable assets until they are successfully resold to final funders. It is worth noting that although LINKLOGIS has reported an accounting loss, its cash reserves have increased. The key point is that the impairment loss provision made in this announcement is an accounting treatment, reflecting adjustments to the book value of related assets and does not involve actual cash outflows in the current period. Therefore, despite the reported loss, due to contributions from operating cash flow, LINKLOGIS's cash reserves saw a growth of RMB 300 million in the first half of the year. Currently, significant progress has been made in addressing historical issues. The board of directors of LINKLOGIS stated that the company has actively addressed historical legacy issues through strengthening credit risk management systems, special efforts in recovering legacy assets, and prudent impairment provision measures. These measures have effectively reduced the continued impact of historical factors on the company's current and future financial condition.