ANE Reported Adjusted Net Profit of RMB242 Million, Up 15.9% Year-on-Year, with Freight Volume, Revenue, and Profit All Rising

ANE Kicks Off 2025 Q1 with Strong Results: Adjusted Net Profit amounted to RMB242 Million, with New Peak of Profit Margin

SHANGHAI, May 27, 2025 /PRNewswire/ -- ANE (9956.HK), China's leading less-than-truckload (LTL) express freight operator, reported robust first-quarter results demonstrating synchronized growth across key metrics. The company delivered a 15.9% year-on-year increase in adjusted net profit to RMB242 million, with adjusted net profit margin expanding to 9.4% - a new peak that underscores its enhanced operational efficiency.

During the reporting period, ANE also recorded:

• LTL freight volume of 3.05 million tons (+5.9% YoY)
• Revenue of RMB2.59 billion (+8.8% YoY)

The performance validates ANE's strategic focus on "quality-driven scale growth" under its "Five Most" operational framework: most dense network coverage, most optimal cost, most superior service quality, most stable timelines, and most timely service response.

Network Expansion and Product Optimization
ANE's freight partner and agent network has reached 36,000 service outlets by quarter-end, maintaining its leadership position in China's express freight sector. The company strengthened competitiveness in the mini and light freight segment (<300kg), achieving:

• 18.4% YoY volume growth in sub-300kg shipments
• 17.3% reduction in freight weight per shipment to 75kg
• 50.6% decrease in number of complaints per 100k shipments

Operational Efficiency Enhancement through Refined Management
Digital transformation initiatives, along with investment in technologies, drove significant cost optimization and service quality improvement

• Transportation and sorting costs per ton reduced by RMB4/ton
• Average shipment time shortened by 10.7%
• Loss rate per 100k shipments plunged 68.2%

Supply Chain Transformation and Market Consolidation
With China's economy transitions into high-quality growth stage, the logistics sector is accelerating its agile transformation across supply chains. This shift is driven by the "small-batch, high-frequency; low-inventory, rapid-turnover" paradigm now reshaping commercial flows across retail, manufacturing, and commercial sectors – a structural change demanding hyper-responsive logistics networks favoring nationwide express freight networks gaining share in the LTL market. Industry data shows nationwide express freight providers gained 14% market share in 2024 while regional LTL and special line operators contracted.

It's notable that the company also increased e-commerce-related shipments to 36% of total volume, consolidating partnerships with major platforms including TEMU, Douyin, 1688, and PDD.

Sector Dynamics Favor Market Leaders
The express freight sector exhibits accelerating consolidation, with top 5 players commanding 82% of industry revenue and 65.5% of total shipments among top 10 competitors. ANE recently topped both China's LTL 50 and Express Freight 10 rankings for franchise operators.

Industrial Securities maintains a "Buy" rating on ANE, citing its nationwide network density and operational efficiency as key differentiators. Analysts anticipate continued market share gains as industry upgrades drive supply chain modernization.

source: ANE