FAST NEWS: Supply chain financer Linklogis’ loss widens

The latest: Supply chain financing solutions provider Linklogis Inc. (9959.HK) said on Monday it expects to report a net loss of 455 million yuan ($63.4 million) to 465 million yuan for last year, far bigger than its 13 million yuan loss in 2022.

Looking up: The large loss owed partly to higher impairment losses on financial assets, and an “increase in the share of loss of equity accounted investees.”

Take Note: The company reported a net loss of 170 million yuan in the first half of last year, which, based on its full-year forecast, implies a bigger loss of between 285 million yuan and 295 million yuan in the second half of 2023.

Digging Deeper: Founded in 2016, Linklogis provides supply chain financing services and listed on the Hong Kong Stock Exchange in April 2021. It helps other companies automate their supply chain financing processes, often using large enterprises’ credit to enable their suppliers to get low-cost financing by providing their accounts receivables at a discount to lenders. The company has yet to record a profit since its inception, and while its losses narrowed in 2022, they widened significantly again last year.

Market Reaction: Linklogis’ shares fell on Tuesday and closed down 0.8% at HK$1.23 by the midday break, near the lower end of their 52-week range.

Translation by A. Au

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