Lalatech Adjusted Net Profit Reaches Approximately USD 400 Million

On April 2, Lalatech updated its prospectus, continuing to advance the process of listing on the main board of the Hong Kong Stock Exchange.

Financial data shows that from 2021 to 2023, Lalatech's revenues were USD 845 million, USD 1.036 billion, and USD 1.334 billion respectively, with a year-on-year revenue growth of 28.8% in 2023. The gross profit margins were 39.4%, 53.7%, and 61.2%, showing a continuous upward trend. Lalatech achieved positive operating profit in 2022 and turned its adjusted net profit to a profit in 2023, reaching USD 391 million in adjusted net profit for 2023.

In 2023, Lalatech facilitated over 5.88 billion completed orders on its platform, with a global freight Gross Transport Volume (GTV) of USD 8.736 billion. In 2023, Lalatech averaged approximately 13.4 million monthly active merchants and around 1.2 million monthly active drivers.

According to Frost & Sullivan data, in the first half of 2023, Lalatech was the world's largest closed-loop freight transaction platform by market share, accounting for 44.0% of the market. It was also the largest same-city logistics transaction platform by closed-loop freight GTV, the largest logistics transaction platform by average monthly active merchants, and the largest logistics transaction platform by completed order quantity.

Established in 2013 and growing in the Greater Bay Area of Guangdong, Hong Kong, and Macau, Lalatech is an internet logistics marketplace engaged in intra-city/inter-city freight transport, enterprise-grade logistics services, relocation, less-than-truckload, vehicle leasing and sales, and post-market vehicle services. Lalatech integrates social transport resources through a sharing model, completes a massive transport capacity reserve, and builds a "convenient, technological, and reliable" freight platform based on mobile internet, big data, and artificial intelligence technologies. This platform enables the instant intelligent dispatch of various vehicle types, providing efficient logistics solutions for individuals, merchants, and enterprises.

In 2014, Lalatech expanded its operations to Southeast Asian countries such as Thailand and Singapore, and entered the Latin American market in 2019. As of December 31, 2023, Lalatech's operations covered over 400 cities in 11 global markets, including mainland China, Hong Kong, Thailand, the Philippines, Singapore, Indonesia, Vietnam, Malaysia, Mexico, Brazil, and Bangladesh.

According to data from Frost & Sullivan, global logistics expenditure in 2023 reached approximately USD 11.0 trillion, with the global road freight market accounting for USD 3.7 trillion of this total. Notably, China's road freight market stands as the largest globally, generating a Gross Transport Volume (GTV) exceeding USD 1.1895 trillion in 2023, capturing 32.6% of the global market share. It is projected to grow at a compound annual growth rate of 7.1% from 2023 to 2028, driven by the accelerated digital transformation within the freight industry, indicating promising market opportunities for Lalatech in the future.

In addition to its core business in road freight, Lalatech has expanded its services to include urban and intercity freight transport, enterprise-grade logistics services, relocation services, less-than-truckload shipping, errand services, vehicle leasing and sales, and post-market vehicle services. Since introducing intercity freight services in 2018, Lalatech has expanded its intercity freight services to over 250 cities. According to Frost & Sullivan data as of June 30, 2023, Lalatech is the only Chinese company with an annual closed-loop freight GTV exceeding USD 1 billion in both urban and intercity businesses.

Furthermore, Lalatech launched comprehensive enterprise services in 2017, catering to large enterprises, and introduced relocation services in 2019 to address the growing needs of individual businesses. Last year, Lalatech introduced errand services to meet the increasing demand for instant consumer services and time-saving solutions. In 2023, diversified logistics services accounted for 26.2% of Lalatech's domestic revenue, indicating a trend towards a diversified business model.

In its prospectus, Lalatech outlined its strategic plans for the next three to five years, intending to expand operations in existing cities and further penetrate second- and third-tier cities in mainland China with future growth potential. Specifically, Lalatech plans to explore business opportunities in second- and third-tier cities in Hebei, Henan, and Jiangxi provinces. Additionally, the company aims to continue enhancing and innovating its services and products, such as further developing relocation services to offer more specialized and customized solutions, expanding less-than-truckload services, and piloting the expansion of two-wheeler delivery services in mainland China.