BRIEF: YTO’s first-half loss widens on slumping ocean, air freight
YTO International Express and Supply Chain Technology Ltd.(6123.HK) reported on Thursday its revenue slumped 52.5% year-on-year to HK$1.41 billion ($181million) in the first half of the year, while its loss widened by 43% to HK$60.4 million from a HK$42.1 million loss a year earlier.
Profits from the company’s ocean freight business continued to decline, plunging 61.8% to HK$9.3 million. Its air freight business continued to lose money, with losses jumping sharply to HK$53.1 million in the first half of the year from a HK$1 million loss a year earlier.
The weak performance stemmed largely from U.S. tariff policies squeezing both revenue and the company’s gross margins. Compounding the pain, the company strategically scaled back certain low-margin operations with extended payment cycles — a move that also shrunk its income and profitability. Concurrently, expenditures rose as the company intensified investments in R&D, doubled down on recruiting and upskilling its global workforce, and accelerated its transition to intelligent infrastructure.
Shares of YTO opened flat at HK$1.24 on Friday. The stock is down 29% from its 52-week high.
By Lau Chi Hang
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