From Asia to Europe: The Logic of Global Supply Chain Restructuring Behind CN Logistics' Interim Results

Performance Highlights: Improved Profit Quality, Cross-border E-commerce Logistics as the Key Engine

In the first half of 2026, amid a complex and volatile global trading environment, CN Logistics International Holdings (2130.HK) delivered a telling set of results. Revenue rose 11.8% year-on-year to HK$1,633.7 million, while net profit attributable to shareholders surged 78.5% to HK$34.1 million. During the same period, gross profit increased by 11.9% to HK$270.5 million, and basic earnings per share climbed 67.9% year-on-year to 8.9 HK cents.

Notably, this growth was not driven by overall market expansion — global air cargo volumes are expected to remain flat, and geopolitical conflicts and trade policy adjustments continued to suppress traditional logistics demand. The real growth engine was CN Express, the Group’s cross-border e-commerce logistics subsidiary. By focusing on high-value-added services, this business successfully turned around from a loss to a profit, recording first-half revenue of HK$289.1 million and contributing approximately 17.7% of the Group's total revenue. Management clearly stated that the strong growth in e-commerce shipment volumes from Mainland China and Hong Kong to Africa and Europe, together with deeper collaboration with major e-commerce platforms, were the main drivers of the earnings improvement.

Regional Divergence: Europe's Gateway Value Stands Out; Southeast Asia Benefits from Supply Chain Relocation

From a regional perspective, CN Logistics' results clearly outline the path of global supply chain restructuring. Greater China (including Hong Kong) revenue grew 17.6% to HK$727.2 million, driven mainly by cross-border e-commerce logistics bound for Europe. In Italy, the Company recorded revenue of HK$360.1 million (compared with HK$349.7 million in the first half of 2025), remaining relatively stable. Management emphasized that Europe continues to serve as the key gateway connecting high-end Asian products with high-purchasing-power consumers.

Even more telling was Southeast Asia's performance. Revenue from the Vietnam and Cambodia offices jumped 53.5% and 190.6%, respectively, to HK$80.4 million and HK$34.0 million. This growth clearly benefited from the relocation of export-oriented manufacturing to Southeast Asia and the “China Plus One” strategy adopted by Chinese companies to avoid tariffs. By serving these manufacturers that supply the U.S. market, CN Logistics has embedded itself in a new regional value chain. The Japan and Korea businesses also recorded improvements, indicating that the Group’s multi-point presence in Asia is generating synergies.

European Perspective: Cross-border E-commerce Logistics Reshaping the Eurasia Trade ChainFor European policymakers and the business community, CN Logistics' performance offers a window into the new dynamics of China-Europe trade. Traditionally, Europe's imports from Asia have consisted mainly of manufactured goods and components, but the explosive growth of cross-border e-commerce is reshaping cargo flows and value composition. Parcels shipped directly from Chinese warehouses to European consumers require not only efficient air freight and customs clearance capabilities, but also rely on overseas warehousing networks, last-mile delivery, and reverse logistics systems. CN Express's return to profitability demonstrates that such high-complexity, high-value-added services are becoming an effective path for Asian logistics companies to break out of price wars and enhance profitability.

At the same time, Europe remains a high-margin market. The steady performance of the Italian business reflects the continued reliance of Europe's luxury and fashion supply chains on specialized logistics services. CN Logistics started in fashion and luxury logistics, and this heritage gives it a unique advantage in winning high-end European clients. Against the backdrop of the EU's push for the Carbon Border Adjustment Mechanism (CBAM) and supply chain due diligence regulations, logistics providers with digital capabilities and compliance management experience will gain greater pricing power.

Strategic Direction: Capturing Supply Chain Resilience Demand with an Asset-Light Model

In the face of global trade fragmentation, CN Logistics has not blindly expanded capacity, but has instead chosen to optimize its business portfolio and strengthen its collaboration network. Its core strategy focuses on two levels: first, continuously refining CN Express to build it into a full-chain solution for cross-border e-commerce; second, deepening its presence in Southeast Asia, leveraging the existing network to capture the dividends of manufacturing relocation. Management repeatedly emphasized "resource sharing," "operational optimization," and "cost discipline" during the earnings presentation, indicating that the company is shifting from capital-expenditure-driven growth to efficiency-driven growth.

Although revenue in the cruise logistics segment fell 12% (from HK$254.9 million to HK$213 million), gross profit rose 3.4% to HK$83.2 million, demonstrating its counter-cyclical resilience. This "cash cow" business provides a stable stream of cash flow for the Group's investments in emerging areas.

Conclusion: The "Asian Moment" of the Global Logistics Industry and Its Ripple Effects on Europe

CN Logistics' interim results reveal a broader trend: Asian logistics companies are evolving from traditional freight forwarders into integrated supply chain managers. The inflection point in cross-border e-commerce logistics profitability marks the industry's transition from scale-based competition to value-based competition. For the EU, the rise of Chinese logistics companies means both new partners in supply chain diversification and potentially heightened reflection on strategic dependencies in key logistics infrastructure.

Regardless of how geopolitics evolve, the flow of goods between Eurasia will not stop—it will only change paths and models. CN Logistics' results prove that companies able to flexibly adjust network nodes and seize opportunities in cross-border e-commerce and regional production relocation will achieve outsized growth amid chaos. And Europe, as a high-end consumer market and a rule-setter in supply chains, will continue to play an irreplaceable role in this system.