Hong Kong – FAR International Holdings Group Company Limited (FAR INTL, 02516) reported a steep earnings decline for the year ended 31 December 2025, as U.S. tariff changes and softer cross-border e-commerce volumes weighed on performance.
Financial Highlights • Revenue fell 33.2% year on year to RMB1.99 billion, driven by lower shipment volumes to the United States. • Gross profit slid 28.2% to RMB154.31 million, though gross margin edged up to 7.74% (FY2024: 7.20%) on improved freight-forwarding and value-added logistics mix. • Profit attributable to shareholders dropped 92.6% to RMB5.12 million; total net profit contracted 95.6% to RMB3.03 million. • An RMB18.10 million goodwill impairment and a RMB19.87 million credit-loss provision weighed on bottom-line results. • Finance costs eased 5.0% to RMB18.38 million as bank borrowings declined. • Cash and bank balances rose 22.8% to RMB551.16 million, while interest-bearing borrowings fell 30.9% to RMB592.48 million; gearing ratio improved to 81.3% (FY2024: 120.0%). • Basic EPS decreased to RMB0.65 cents (FY2024: 8.88 cents); no dividend declared.
Segment Performance • End-to-end cross-border delivery revenue: RMB983.0 million, ‑28.5% YoY, 49.3% of total. • Freight forwarding: RMB404.57 million, ‑32.5% YoY, 20.3% of total. • Other logistics services: RMB605.11 million, ‑40.0% YoY, 30.4% of total. Revenue from Customer Group A accounted for 39.2% of total sales (RMB780.72 million).
Balance Sheet & Liquidity • Net current assets rose to RMB549.36 million (FY2024: RMB535.26 million). • Trade receivables declined 15.6% to RMB557.19 million; trade payables increased 11.4% to RMB92.77 million. • Net assets increased 7.2% to RMB774.53 million.
Capital Moves • Net proceeds of RMB63.70 million were raised in a November 2025 share placement; RMB9.40 million had been deployed by year-end, mainly for working capital. • As of 31 December 2025, RMB54.30 million from the placement remained earmarked for warehouse expansion and other logistics initiatives. • Of the RMB58.79 million IPO proceeds, RMB26.88 million had been utilised, with remaining funds allocated chiefly to overseas logistics expansion and digital infrastructure.
Strategic Developments • Ongoing diversification beyond U.S. routes via optimized logistics corridors and entry into Southeast Asia, South America, Europe, Japan and South Korea. • Strengthening overseas infrastructure: planned acquisition of 51% interests in COPE Services and Hyperlining (announced January 2026; completion pending). • Enhanced digitalisation and AI-driven operational upgrades; Hangzhou FAR achieved multiple industry accolades and joined Amazon’s service provider network.
Outlook Management expects global cross-border logistics to continue growing, though at a slower pace amid geopolitical uncertainties. FAR INTL will pursue its “One Core, Two Wings” strategy—AI-powered digital fulfilment at the centre, with trade and financial services as complementary pillars—while expanding overseas facilities, boosting technology investment, and deepening partnerships with major e-commerce platforms.
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