KLN Logistics revenue rises 10% in first half of 2026

KLN Logistics Group reported a 10% increase in revenue for the first half of 2026, supported by growth across its logistics and freight forwarding businesses.

Revenue reached HK$29.85 billion, compared with HK$27.21 billion in the same period last year.

Core net profit increased 2% to HK$695 million, while profit attributable to shareholders rose 4% to HK$674 million.

However, core operating profit declined 8% to HK$1.24 billion.

Integrated Logistics revenue grows 19%

KLN’s Integrated Logistics (IL) business recorded a 19% increase in revenue before elimination.

The growth was supported by new customer wins in Hong Kong and mainland China.

In Hong Kong, revenue increased 26%. KLN secured around 60 new customers during the period, while its healthcare and construction logistics activities also contributed to growth.

Mainland China revenue increased 19%. The company expanded services in areas including cold chain and commodity transportation.

Elsewhere in Asia Pacific, IL revenue increased 8%. Malaysia, Vietnam and Cambodia were among the markets reporting strong growth.

Despite higher revenue, IL segment profit fell 7% to HK$665 million. KLN attributed the decline mainly to lower customer rates, inventory destocking and higher fuel costs.

Freight forwarding volumes post double-digit growth

KLN’s International Freight Forwarding (IFF) business increased revenue by 12% before elimination.

Both air and ocean freight volumes recorded growth in the mid-teens.

Air freight growth was led by mainland China and Europe, while North America recorded the strongest growth among the company’s major trade lanes.

KLN said demand linked to AI infrastructure on the Asia-US corridor remained strong.

Ocean freight also recorded mid-teens volume growth. The company pointed to higher Asian exports, supply chain diversification and tariff-related front-loading as key drivers.

KLN said it remained the world’s largest Trans-Pacific NVOCC on the Asia-US trade during the period. It also expanded its presence on Asia-Europe and intra-Asia routes.

Despite higher volumes, IFF segment profit declined 7% to HK$855 million due to competitive pressure and higher fuel costs.

Project logistics revenue reaches HK$1.9 billion

KLN Project generated approximately HK$1.9 billion in revenue, up from HK$1.7 billion a year earlier.

Growth came from ongoing Engineering, Procurement and Construction projects and the company’s traditional project logistics activities.

Segment profit also increased year-on-year.

Meanwhile, KLN’s aviation ground handling operation at Ezhou Airport generated HK$212 million in revenue.

It handled more than 3,500 international flights during the first half, an increase of 11.8%.

KLN remains cautiously optimistic for 2026

KLN expects geopolitical tensions, tariff uncertainty and changing trade patterns to continue affecting the market during the second half of 2026.

“Overall, the Group remains cautiously optimistic about its growth prospects for the remainder of the year,” said Vic Cheung, Executive Director and CEO of KLN.

The company plans to continue investing in digitalisation, technology, its commercial capabilities and network development under its KLN 2.0 strategy.

KLN declared an interim dividend of HK$0.12 per share, payable around 25 September 2026.

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