GP Logistics (Grand Power Logistics Group Limited) released its audited results for the year ended 31 December 2025, reporting a sharp contraction in turnover and profitability under challenging market conditions.

Revenue declined 31.6% year-on-year to HK$723.61 million, driven mainly by a 31.4% fall in air-freight income to HK$716.69 million. Ocean-freight revenue slid 47.4% to HK$6.92 million. Management cited new U.S. tariffs, intensified pricing competition and legacy fixed-price airline contracts as key headwinds.

The gross margin turned negative, producing a HK$0.18 million gross loss versus a HK$39.74 million gross profit in FY2024. Combined with steady operating expenses of HK$40.33 million and a HK$2.44 million impairment on property, plant and equipment, the Group recorded a net loss of HK$44.95 million (FY2024: HK$3.66 million loss).

Liquidity metrics weakened. Cash and bank balances stood at HK$39.08 million, supplemented by HK$35.82 million in pledged deposits. The gearing ratio rose to 74.9% (FY2024: 38.0%) as interest-bearing borrowings increased to HK$58.89 million. Current ratio slipped to 1.4 (FY2024: 1.6).

Trade receivables dropped 35.4% to HK$130.22 million, while average debtor days lengthened to 83.6 from 72.2, reflecting a higher proportion of clients on longer credit terms. Shareholders’ equity fell to HK$81.07 million from HK$126.66 million. No final dividend was proposed.

Looking ahead, the Board warned of continued volatility in costs and supply chains amid Middle-East tensions and China-US trade frictions. Strategic responses include exploring alternative routes, deepening carrier partnerships and investing in digital tools to enhance efficiency.