SLGB · Smart Logistics Global Limited Ordinary Shares

Smart Logistics Global Limited reported challenging fiscal year 2025 results, marked by a revenue decline and a swing to a net loss. Revenue fell 7.3% to approximately RMB 628.5 million, primarily attributed to reduced customer demand in the coal and steel sectors linked to the PRC economic downturn. This demand softening was evidenced by a 13.6% decrease in total transportation orders and a 13.0% decline in total weight transported. Despite the top-line contraction, the company demonstrated operational resilience with gross profit margin expanding 60 basis points to 4.7%, driven by stable pricing mark-ups and cost management discipline.

The shift to a net loss of RMB 18.2 million, compared to net income of RMB 8.7 million in the prior year, was significantly impacted by a material non-cash share-based consulting expense recognized in 2025 related to the issuance of unrestricted ordinary shares. This expense inflated selling and marketing costs, masking the underlying operational improvements. Operationally, the company successfully pivoted toward longer-haul transportation, increasing total distance transported by 11.7%, which management highlighted as evidence of their ability to capture demand in longer-distance routes.

Looking forward, management expressed confidence that the economic downturn will not persist throughout 2026, anticipating a gradual recovery in the PRC economy. Strategic initiatives include the newly announced Northern Supply Chain Center in Xuzhou, Jiangsu Province, which is expected to enhance the B2B logistics network and support long-haul business growth through a North-South dual-core framework.