FUZHOU,
China, Nov. 18, 2024 /PRNewswire/ -- Shengfeng
Development Limited ("Shengfeng" or the "Company") (NASDAQ: SFWL),
a contract logistics company in China providing customers with integrated
logistics solutions, announced today that on November 5, 2024, Shengfeng Logistics Group, a
variable interest entity that the Company controls via a series of
contractual arrangements ("Shengfeng Logistics"), forms a joint
venture (the "Joint Venture") with Fujian Fulai Aviation Technology
Co., Ltd. ("Fulai Aviation"). The new entity formed in respect of
the Joint Venture, Fujian Shengfeng Fulai Low Altitude
Comprehensive Services Co., Ltd., is expected to leverage Shengfeng
Logistics's expertise in logistics with Fulai Aviation's drone
technology to deliver drone-based logistics solutions across
China's low-altitude logistics
sector.
Shengfeng Logistics holds a majority stake in the 51% in the
Joint Venture, which is anticipated to affirm the Company's
commitment to establishing a leadership role in this burgeoning
field. The focus of the Joint Venture will be on providing tailored
drone logistics services to address critical needs in remote and
mountainous areas and island regions of Fujian Province. Additionally, Shengfeng
anticipates that, through the Joint Venture, it may collaborate
with local governments to support forest fire prevention and
monitoring through drone patrols, to provide timely and effective
response capabilities in environmental protection.
Strategic Expansion in China's Low-Altitude Economy
The Joint Venture follows Shengfeng's recent announcement of its
entry into China's low-altitude
economy, an emerging sector projected to exceed 1 trillion yuan (approximately 140 billion USD) by 2026, according to recent
studies by CCID Consulting Co., Ltd., a subsidiary of the China
Center for Information Industry Development under China's Ministry of Industry and Information
Technology. Such studies indicate that the low-altitude market,
which includes drone-enabled services within airspace up to 1,000
meters, is positioned to transform logistics with applications
across healthcare, e-commerce, agriculture, and environmental
monitoring. By expanding into this sector, Shengfeng will endeavor
to harness new revenue streams while advancing its strategy of
integrated logistics innovation.
Key Services and Customized Solutions
Through the Joint Venture, Shengfeng plans to deliver a range of
specialized logistics solutions designed to meet the unique demands
of various industries, including:
- Rapid-Response Drone Delivery: Enhancing last-mile
connectivity for e-commerce and essential goods, particularly in
areas with challenging terrain.
- Customizable Logistics Solutions: Tailored services for
high-value sectors, such as pharmaceuticals and cold-chain
logistics, providing clients with the flexibility to adapt delivery
schedules and packaging requirements based on industry-specific
needs.
- Dynamic Pricing and Adaptive Supply Chain: Real-time
pricing adjustments based on supply and demand, supported by a
responsive supply chain that leverages market data to anticipate
and respond to changing needs efficiently.
Leadership Insights and Future Vision
"Forming the Joint Venture with Fulai Aviation aligns with our
mission to drive innovation in logistics through drone technology,"
said Mr. Yongxu Liu, Chairman and CEO of Shengfeng. "By combining
our logistics infrastructure with Fulai Aviation's drone
capabilities, we believe we will be capable of providing valuable
solutions to underserved regions and critical sectors. The
formation of the Joint Venture with Fulai Aviation represents
an important milestone in our efforts to support sustainable growth
in China's low-altitude
economy."
About Shengfeng Development Limited
Shengfeng Development Limited is a contract logistics
company in China providing
customers with integrated logistics solution services. Established
in 2001, the Company has developed extensive and reliable
transportation networks in China,
covering 341 cities across 31 provinces, as of June 30, 2024. The Company provides integrated
logistics solutions comprised of B2B freight transportation
services, cloud storage services, and value-added services. The
Company applies well-established management system and operation
procedures to assist companies in China to increase efficiency and improve their
own management systems with respect to transportation, warehousing
and time management. For more information, please visit the
Company's website: http://ir.sfwl.com.cn/.
Forward-Looking Statements
This press release contains "forward-looking statements."
Forward-looking statements reflect our current view about future
events. These forward-looking statements involve known and unknown
risks and uncertainties and are based on the Company's current
expectations and projections about future events that the Company
believes may affect its financial condition, results of operations,
business strategy and financial needs. Investors can find many (but
not all) of these statements by the use of words such as
"approximates," "believes," "hopes," "expects," "anticipates,"
"estimates," "projects," "intends," "plans," "will," "would,"
"should," "could," "may" or other similar expressions in this press
release. The Company undertakes no obligation to update or revise
publicly any forward-looking statements to reflect subsequent
occurring events or circumstances, or changes in its expectations,
except as may be required by law. Although the Company believes
that the expectations expressed in these forward-looking statements
are reasonable, it cannot assure you that such expectations will
turn out to be correct, and the Company cautions investors that
actual results may differ materially from the anticipated results
and encourages investors to review other factors that may affect
its future results in the Company's registration statement and
other filings with the U.S. Securities and Exchange Commission.
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SOURCE Shengfeng Development Limited