Smart Logistics Global Reports 7.3% Revenue Decline, 4.7% Gross Margin in 2025
Smart Logistics Global’s 2025 revenue fell 7.3% to RMB628.5 million (US$89.9 million) with transportation orders down 13.6% and tonnage 13.0%. Gross profit margin rose to 4.7% from 4.1%, but net loss widened to RMB18.2 million (US$2.6 million) due to a non-cash share-based consulting expense.
1. Fiscal 2025 Financial Performance
Revenue decreased to RMB628.5 million (US$89.9 million) in 2025, down 7.3% from 2024, while net loss reached RMB18.2 million (US$2.6 million) compared to RMB8.7 million net income last year. The total number of transportation orders and total weight transported declined by 13.6% and 13.0%, respectively.
2. Margin Improvement and Expense Impact
Gross profit margin improved to 4.7% from 4.1% despite lower volumes, reflecting disciplined pricing and cost control. A material non-cash share-based consulting expense significantly increased selling and marketing costs, driving the company to a net operating loss of RMB14.2 million (US$2.0 million).
3. Operational Dynamics
Total transportation distance grew by 11.7%, highlighting a shift toward longer-haul routes even as demand softened in coal and steel sectors. This resilience in distance reflects the company’s ability to capture longer-route demand despite PRC economic headwinds.
4. Network Expansion and Outlook
The January launch of a Northern Supply Chain Center in Xuzhou, Jiangsu Province has bolstered the North-South logistics framework and long-haul business. Management expects PRC economic stabilization in 2026 to support a gradual recovery, underpinned by service efficiency optimizations and strengthened customer relationships.