KLN (00636) announced its annual performance with a net profit attributable to shareholders of HKD 1.411 billion, an increase of 7% year-on-year.

KLN(00636) announced the performance for the financial year ended December 31, 2025. The Group achieved revenue of HK$56.336 billion, a decrease of 3% year-on-year; profit attributable to shareholders was HK$1.411 billion, an increase of 7% year-on-year; basic earnings per share were HK$0.78; proposed final dividend of 16 Hong Kong cents per share. The comprehensive logistics business segment in Hong Kong saw a 7% decrease in profit, attributed to market competition, changing consumption patterns, and the cautious shopping attitude of tourists and local consumers. In 2025, the retail and catering industry in Hong Kong remained weak, with consumers preferring more affordable and cost-effective brands. Additionally, more residents are traveling to the Greater Bay Area to enjoy lower-cost catering and shopping, leading to a decrease in local demand. Although the comprehensive logistics business segment attracted new clients and projects in the construction, pharmaceutical, and medical fields, the growth was not enough to offset the overall slowdown. The migration of key clients' operations to the Shenzhen Qianhai area also dragged down performance. In mainland China, the economy remained weak and consumer confidence was still soft. Intensified industry competition led companies to adopt the "China plus one" strategy, moving part or all of their supply chains to other markets and reducing domestic logistics activities. Consumer downgrading also affected demand for electronics, fashion apparel, and high-end goods. To address the pressure on business performance, the Group adjusted and streamlined its operations and used AI to optimize financial and operational processes to strengthen cost control. Despite these actions, the profit of the comprehensive logistics business segment in mainland China still decreased by 11%. Conversely, the profit of the comprehensive logistics business segment in other Asian regions increased by 23%, becoming the main driver of growth in 2025. Uncertainty over tariffs and cost factors accelerated the relocation of supply chain activities from mainland China to nearby markets, especially in South and Southeast Asia. Leveraging its established presence and strategic assets in the region, the Group benefited from steady market growth and the strong performance of KLN Seaport in Thailand, successfully seizing new business opportunities.