It’s been a busy and productive 15 months for KLN. Amid widespread challenges to the business landscape, from macro factors to geopolitics to rollercoaster markets, the Group has transformed risks such as supply chain shifts and disruption, plus volatile freight rates, into new opportunities by further expanding into emerging demand across Asia.
“We have responded to evolving markets with agility, leveraging our network resources and offering flexible and cost-effective solutions to its customers,” said Vic Cheung, executive director and chief executive officer.
The outcome of the Group’s resilience can be clearly seen from its financial results for 2024, with figures to show impressive increases in revenue, operating profit and core net profit. For example, for continuing operations, KLN recorded double-digit growth across revenue (23%) and core net profit (12%) for the year – which meant KLN outperformed its international peers.
Reinforcing the growth trajectory and strategic positioning
These results reflect a promising journey since the spin-off from Kerry Properties Limited (KPL) and separate listing in 2013. Since then, the Group has been operating as a leading logistics service provider in Asia engaged in the integrated logistics (IL) and international freight forwarding (IFF) businesses. Further, after deconsolidating from KPL in 2021 by completing a partial offer made by wholly-owned subsidiary S.F. Holding Co, the Group has been effectively building a distinct brand identity and culture as part of the transition in ownership.
As a result, the rebranding to KLN aims to create a more unified and differentiated corporate identity, as well as reinforce a unique strategic positioning and value proposition to customers.
“Our global rebranding campaign will help us to deepen trust with our customers through what has now become an established household name,” added Cheung. “Along with achieving resilient performance, this will usher in a new era of the Group’s development to better serve the interests of our shareholders.”
Diversifying in logistics
Diversification has been a key part of the Group’s broader vision to inspire a world without boundaries by leading global logistics from Asia. “To enhance our extensive network and diversified business portfolio in Southeast Asia, KLN capitalised on the opportunities arising from the international expansion policies of Chinese corporations in 2024,” said Cheung.
KLN’s plan is to now leverage its diversified market presence in fast-growing countries such as Thailand, Vietnam and Indonesia, while actively developing the new markets it has recently entered, including Sri Lanka, Dubai and Mexico. Other new growth drivers include sectors like infrastructure and environmental protection.
For existing customers, meanwhile, KLN will look to drive revenue growth by accelerating the integration of its operations between Hong Kong and the Mainland of China, to address rising local demand for Hong Kong-China hybrid logistics solutions.
Impressive performance in international freight
Meanwhile, a spike in ocean freight rates triggered by the situation in the Red Sea gave the IFF segment a boost. Further, KLN capitalised on supply shortages in ocean freight by providing customers with the rare offering of block space and tailored solutions.
In terms of other units, KLN’s industrial project logistics division strengthened its service capabilities. And the joint venture between KLN and S.F. Holding – to provide ground handling services at the international cargo terminal of the Ezhou Huahu International Airport in China – recorded a decent revenue contribution in its first year that significantly exceeded expectations.
Adding to these successes, KLN will leverage unique route offerings and market coverage in Asia, a diverse service portfolio and global network resources. In line with this, the Group is preparing for the likely rise in intra-Asia trade and demand for overseas warehousing services.
“With KLN’s unique competitive advantages and the ability to capitalise on new opportunities brought about by the changes in the market, we will further drive the overall growth of our business, and have our future growth potential reflected in the company’s market valuation under the KLN brand,” Cheung added.
Adapting to a new era for trade
As volatility in the policy environment continues, and with more corporations likely to shift their investment focus towards the Southeast Asian or South Asian regions, KLN is ready for supply chain anomalies to persist in 2025 and beyond.
“Anchored in Asia, we deliver exceptional logistics solutions that connect markets and empower global trade,” explained said Cheung. “Through unmatched global connectivity, we enable our customers to thrive and reach new heights of success.”
In particular, the development potential within these regions is expected to become a growth area for KLN’s IL business.
“We will actively leverage our existing diversified market presence,” said Cheung, “including our extensive overseas warehouse network and ocean and air freight services, to capitalise on new opportunities springing from the supply chain reshuffle.”
