KLN Logistics Group (KLN) reported higher core net profit in 2025 as growth in its Asian integrated logistics operations and tighter cost controls helped offset weaker performance in Hong Kong, Mainland China and global freight forwarding.
Chief executive Vic Cheung said KLN "recorded continued growth in core net profit, outperforming the industry average again," crediting KLN's resilience amid subdued global conditions marked by policy uncertainty, elevated tariffs and geopolitical tensions.
KLN reported its Group's annual results for 2025, showing revenue dropped by 3% year-on-year to HK$56,336 million (US$7.19 billion) from HK$58,274 million (US$7.44 billion) in 2024. Its core operating profit decreased by 4% to HK$2,627 million (US$335.3 million) from HK$2,725 million (US$347.7 million).
Core net profit for 2025 increased by 3% to HK$1,396 million (US$178.1 million) from HK$1,357 million (US$173.23 million) in 2024.
KLN saw its Integrated Logistics (IL) business record a segment profit of HK$1,262 million (US$161.03 million), which represents a slight increase of 1%.
Its International Freight Forwarding (IFF) business also recorded a segment profit of HK$1,874 million (US$239.12 million), which represents a drop of 4%.
Cheung noted that global economic conditions stayed subdued in 2025 as policy uncertainty, elevated tariffs, and persistent geopolitical tensions continued to weigh on worldwide growth — and against this backdrop, "KLN navigated the full year with resilience and agility, enabling the Group to record continued growth in core net profit, outperforming the industry average again."
To fulfil KLN's long-term purpose and stay ahead in a rapidly changing logistics landscape, he noted that the company launched the KLN 2.0 transformation in 2025 Q4, a customer-centric transformation plan to achieve accelerated growth —enabling the Group to serve multinational corporations with greater integration, consistency, and strategic relevance.
Integrated Logistics
In 2025, KLN saw its IL business recorded a similar segment profit as the prior year despite the difficult operating environment.
It said that the key markets of Hong Kong and the Chinese Mainland continued to face keen industry competition alongside significant shifts in consumption patterns.
The Group offset pressure on performance by capitalising on growth in other Asian markets and strengthening cost control measures across its network.
In Hong Kong, the IL business reported a 7% decrease in segment profit, due to market competition, shifting consumption patterns and rising price sensitivity among both visitors and local consumers.
KLN said although the division secured new customers and project wins in the construction, pharmaceutical, and healthcare sectors, "these gains were not sufficient to offset the broader slowdown."
The relocation of key customers' operations to Qianhai, Shenzhen also weighed on performance.
In the Chinese Mainland, the IL division reported an 11% decline in segment profit, as consumer sentiment stayed weak amid a sluggish economy. KLN noted that heightened industry competition and continued partial or complete relocation of supply chains under the "China Plus One" strategy reduced domestic logistics activity.
To mitigate pressure on business performance, the Group undertook rightsizing and streamlining efforts. This, together with the adoption of AI to optimise financial and operational processes, strengthened cost discipline.
In the rest of Asia, KLN's IL division recorded a 23% increase in segment profit, representing the key growth driver in 2025.
It said that tariff uncertainty and cost considerations accelerated corporations' shift of supply chain activities from the Chinese Mainland to neighbouring markets, particularly in South and Southeast Asia. Leveraging its solid presence and strategic assets in the region, the Group captured new businesses from stable market growth as well as satisfactory performance from KLN Seaport in Thailand.
In 2025, the Group's IFF division prioritised maintaining optimal volume and disciplined receivables management, resulting in a slight decline in volume and a 4% decrease in segment profit.
The IFF division, which is the world's largest Trans‑Pacific NVOCC from Asia to the U.S., benefited from a short‑term rise in demand after the elevated tariff was temporarily suspended, securing space for customers and moving cargo on faster services. The business also saw steadier volumes on alternative Asia–Europe and Intra‑Asia routes, which continued to draw traffic as shippers diversified supply chains.
KLN's project logistics unit within the IFF division generated HK$3.8 billion (US$484.89 million) in revenue in 2025, supported by ongoing EPC project execution and a rebound in traditional industrial project work. The business delivered a solid contribution to segment profit in the EMEA region as activity in large‑scale projects picked up.
Meanwhile, KLN noted that its joint venture with S.F. Holding, which provides ground handling services for international flights at Ezhou Airport in Central China, contributed HK$387 million (US$49.38 million) in revenue in 2025.
With ground handling volume rising 75% year-on-year following the expansion of the international cargo terminal to 420,000 sq ft, KLN said air freight ancillary activities have become an important growth driver for the Group's IFF business in the Chinese Mainland.
2026 to remain volatile
Looking ahead, Cheung said, the business environment in 2026 is "expected to remain volatile and complex, shaped by ongoing geopolitical rivalry and continued uncertainty over tariff-related policies."
"Notably, the escalation of geopolitical tensions in the Middle East since late February has intensified trade disruption, which may dampen global consumption demand and economic growth," he added.
The KLN chief executive added that under the new KLN 2.0 initiative, the Group is focused on doubling its business scale by driving rapid growth across network coverage, customer base, and shipment volume in the near term.
"In the medium term, the Group will upgrade and scale its service capabilities globally to distinguish itself as one of the top 10 global supply chain players," Cheung said. "In the long term, the Group aims to firmly establish itself as a global top 5 industry player, defined not only by scale but also by innovation, ecosystem leadership, and sustainable value creation."
He said that the Group will continue strengthening its stakeholder ecosystem – balancing the needs of shareholders, employees, partners, society, government, and the environment, with the customer at the centre.
