#China #logistics #digital freight #Guiyang #Full Truck Alliance

Full Truck Alliance Co. Ltd. Reports Strong Financial Results for 2024

Full Truck Alliance Co. Ltd. (FTA) has released its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024, revealing impressive growth in revenue and profitability. This leading digital freight platform continues to make significant strides in the logistics industry, solidifying its position with robust operational strategies driven by technology and efficiency.

Fourth Quarter Highlights

In the fourth quarter of 2024, FTA reported total net revenues of RMB 3,174.3 million (approximately USD 434.9 million), a remarkable 31.8% increase from RMB 2,408.0 million during the same period in 2023. This growth trajectory was fueled primarily by the rise in freight matching services, which saw revenues climb to RMB 2,704.9 million, marking a 34.2% enhancement year-over-year.

Net income for the quarter reached RMB 574.6 million (USD 78.7 million), slightly lower than the previous year's RMB 588.3 million. However, the non-GAAP adjusted net income demonstrated a significant rise, reaching RMB 1,052.0 million (USD 144.1 million), which is a 43.5% increase from the prior year.

Operational Improvements

The number of fulfilled orders in the fourth quarter also showcased substantial growth, hitting 56.9 million, an increase of 24.3% from 45.8 million in the same timeframe last year. Furthermore, the average monthly active users (MAUs) of shippers saw a substantial rise to 2.93 million, reflecting a 31.3% increase year-over-year, indicating that the platform's user engagement strategies are effectively drawing in more clients.

2024 Fiscal Year Overview

For the entire fiscal year of 2024, total net revenues stood at RMB 11,238.6 million (USD 1,539.7 million), which is a 33.2% rise from RMB 8,436.2 million in 2023. The platform's stellar performance can be attributed to advancements in technology and ongoing investments in its logistics ecosystem. Notably, the transaction service revenue surged by 66.7%, emphasizing the platform's effectiveness in enhancing user experiences and transaction efficiencies.

Income for the year climbed to RMB 3,123.4 million, a 40.2% increase from RMB 2,227.1 million in 2023, while non-GAAP adjusted net income soared by 43.7% to RMB 4,020.4 million. This showcases the company’s commitment to sustainable growth and profitability.

Future Outlook

Looking ahead, CEO Peter Hui Zhang emphasized the company’s commitment to further innovation, particularly through AI-driven enhancements aimed at improving efficiency for truckers while lowering logistics costs for shippers. The broader strategy is geared towards sustainable growth by continually optimizing the platform's functionalities to elevate matching efficiencies and foster a dynamic ecosystem for users.

The company also announced an adoption of a semi-annual dividend policy slated to commence in 2025, aiming to distribute approximately USD 200 million in cash dividends throughout that year, signaling a strong commitment to shareholder value.

Conclusion

Full Truck Alliance’s impressive financial results for both the fourth quarter and the entire fiscal year highlight a proactive approach towards achieving operational excellence in the digital freight sector. The company’s strategic initiatives not only position it for future growth but also enhance its capacity to deliver greater value to shippers and truckers within the logistics industry. As they continue to innovate and expand, stakeholders can anticipate further advancements that will likely influence the logistics landscape positively.