KLN Logistics Group Limited reported steady core net profit growth for the fiscal year 2025, underscoring the company’s resilience in a complex global trade environment. The Group’s annual results highlight strong financial discipline and strategic expansion efforts, despite revenue and operating pressures in key markets.
Financial Highlights and Dividend
KLN recorded revenue of HK$56,336 million, down 3% from HK$58,274 million in 2024, reflecting subdued global demand and persistent geopolitical tensions. Core operating profit declined by 4% to HK$2,627 million (2024: HK$2,725 million), while core net profit increased 3% to HK$1,396 million (2024: HK$1,357 million). Profit attributable to shareholders rose 7% to HK$1,411 million (2024: HK$1,321 million).
The Board proposed a final dividend of 16 HK cents per share, payable on or around 8 June 2026.
CEO Commentary
Vic Cheung, Executive Director and CEO of KLN, said:
“Global economic conditions remained subdued in 2025, with policy uncertainty, elevated tariffs, and ongoing geopolitical tensions weighing on growth. Despite this, KLN demonstrated resilience and agility, delivering continued growth in core net profit and outperforming the industry average.
“To maintain our competitive edge, we launched the KLN 2.0 transformation in Q4 2025, a customer-centric strategy designed to accelerate growth and enhance service integration for multinational corporations.”
Integrated Logistics Performance
KLN’s Integrated Logistics (IL) division maintained segment profit at HK$1,262 million, up slightly from HK$1,251 million in 2024. In Hong Kong, IL profit fell 7% due to intensifying competition, shifting consumption patterns, and rising price sensitivity. Mainland China saw an 11% decline, impacted by weak consumer sentiment, industry competition, and ongoing supply chain relocations under the “China Plus One” strategy.
Offsetting these declines, IL operations in the rest of Asia surged 23%, driven by corporate supply chain diversification into South and Southeast Asia. Strategic investments, such as KLN Seaport in Thailand, contributed to profitable growth, highlighting the division’s regional adaptability.
Cost discipline remained a priority across the IL network, with AI integration streamlining operational and financial processes and supporting the Group’s ongoing rightsizing initiatives.
International Freight Forwarding
The International Freight Forwarding (IFF) division reported a 4% decrease in segment profit to HK$1,874 million (2024: HK$1,950 million), reflecting slight volume reductions and disciplined receivables management. As the leading Trans-Pacific NVOCC from Asia to the US, the division capitalized on temporary tariff relief, securing space and providing expedited services.
IFF also benefited from sustained demand along Asia-Europe and Intra-Asia routes amid global supply chain diversification. Project logistics, particularly Engineering, Procurement, and Construction (EPC) initiatives, contributed HK$3.8 billion in revenue, with strong performance in the EMEA region.
Additionally, the joint venture with S.F. Holding operating at Ezhou Airport drove HK$387 million in revenue, with ground handling volumes up 75% year-on-year following terminal expansion to 420,000 sq ft. Ancillary air freight services emerged as a key growth driver for IFF in Mainland China.
Strategic Outlook
Looking ahead, Vic Cheung highlighted ongoing volatility in 2026 due to geopolitical tensions, tariff uncertainty, and global trade disruption. Under KLN 2.0, the Group aims to:
- Accelerate network coverage, customer acquisition, and shipment volume in the short term.
- Upgrade and scale global service capabilities in the medium term to rank among the top 10 global supply chain operators.
- Establish itself as a top-five industry leader in the long term, driven by innovation, ecosystem leadership, and sustainable value creation.
Cheung emphasised that KLN will continue balancing the needs of shareholders, employees, partners, society, and the environment, keeping customers at the centre of its strategy.
