Tradelink profit rises 48% to $30m in H1 ​​​​​​​

The Group declared an interim dividend worth HK2.8 cents per share.

Tradelink Electronic Commerce Limited profit climbed by 48.6% to $30m in the first half of the year, driven by the strong external trade and global economic recovery.

“As the Hong Kong’s external trade showed a sharp rebound alongside the strong global economic recovery, the Group’s operating environment had noticeably improved in the first half of 2021,” it said in a bourse disclosure.

The Group declared a dividend interim worth HK2.8 cents per share, a 43.6% increase from last year.

Revenue over the period increased 7.4% to $128.5m as it recorded growth on three business segments – e-commerce, identity management business and other services businesses.

Revenue from its e-commerce business, comprising of Government Electronic Trading Services (GETS) and Supply Chain Solutions, increased 9% to $88.9m, whilst the segment profit amounted to $32.9m.

Its identity management business revenue dipped by 3.5% to $25.7m, linked to the shift of business to more profitable products reducing the overall costs. Despite this, the segment profit went up by 32.3% to $2.9m

Moreover, revenue recorded was $13.8m, representing an increase of 20.9% year-on-year. Segment profit during the Period surged 44.1% YoY from $4.9m.

“For the second half of 2021, we reckon that our GETS business would continue to be favorable even though the strong growth in the first half is expected to slow down somewhat,” K.K. Tse, CEO of Tradelink, said in a statement.

“It is because Governments worldwide appear to have become more experienced in responding to the pandemic and the people better adapted in their daily lives whilst the Delta variant is still rampant.”