Jayud Global Logistics Limited (NASDAQ: JYD) ("Jayud" or the
"Company"), a leading end-to-end supply chain solution provider
based in Shenzhen, specializing in cross-border logistics, today
announced a significant expansion into the North American logistics
market through its wholly owned subsidiary, Joyed Logistics
Services Inc. ("Joyed Logistics"). Joyed Logistics has entered into
an equity purchase agreement to acquire a 51% controlling stake in
HYTX Warehouse Inc. ("HYTX"), a prominent logistics company
headquartered in Azusa, California, with 27 locations across the
United States and Canada.
Under the terms of the agreement, the equity
interests in HYTX will be transferred to Joyed Logistics upon
execution, with the purchase price based on HYTX's actual annual
average net profit from the acquisition closing date to December
31, 2026, with part of the payment to be made in cash and the
remainder in ordinary shares of Jayud in 2027. This
performance-based approach is the latest example of Jayud's
commitment to investing in successful and synergistic business
operations.
According to ECDB, in 2023, North America
replaced APAC as the strongest region for eCommerce logistics
revenues, with APAC second and Europe third. The market for
eCommerce logistics is expected to grow at an average yearly growth
rate of over 10% to a value of approximately US$788 billion of
revenues generated by 2027.
The acquisition comes at a pivotal time as the
global air cargo demand continues to see robust growth, driven by a
buoyant international market and booming e-commerce, with demand
growing by 11.9% year over year as of February 2024, according to
the International Air Transport Association (IATA).
HYTX leadership brings over two decades of
experience in logistics technologies, and boasts a comprehensive
network of global suppliers, overseas warehouses, and logistics
services. Jayud is currently incorporating HYTX's customers into
its suite of logistics software solutions, enabling seamless
integration within U.S. and Chinese customs systems, providing
greater operational efficiencies. HYTX's expertise spans one-piece
delivery, goods transfer, returns and label replacement, and
last-mile delivery, supported by a professional team and
operational process.
This acquisition enables Jayud to offer one-stop
services for drop shipping of small pieces, bulk forwarding,
traditional goods, FBA goods, secondary sales of returns and label
replacement, and last-mile delivery arrangements, catering to the
diverse needs of overseas warehouses.
Xiaogang Geng, Chairman of the Board and CEO of
Jayud, commented, "The acquisition of HYTX Warehouse is an
important milestone for Jayud as we expand our global logistics
network into the U.S. market. HYTX's extensive experience and
innovative logistics solutions align perfectly with our mission to
provide comprehensive, efficient, and high-quality logistics
services worldwide.”
“This acquisition leans into the shifting
dynamics in global e-commerce logistics, where North America has
emerged as the leading revenue generator. With an anticipated
annual growth rate of over 10% in the sector, our collaboration
with HYTX positions us to capitalize on these opportunities. We are
confident that this partnership will enhance our service offerings
and further solidify our position as a leader in the global
logistics industry.”
Annual Report on 20-F for Fiscal Year
2023 Now Available
Jayud has filed its annual report on Form 20-F
for the fiscal year ended December 31, 2023, with the Securities
and Exchange Commission. The annual report can be accessed via the
SEC's website at http://www.sec.gov and the Company’s investor
relations website at https://ir.jayud.com/.
The Company will provide hard copies of its
annual report, free of charge, to its shareholders upon request.
Requests should be directed to the Company's Investor Relations
Department at Jayud Global Logistics Limited, Building 3, No.7
Gangqiao Road, Li Lang Community Nanwan Street, Longgang District
Shenzhen, China.
About Jayud Global Logistics
Limited
Jayud Global Logistics Limited is one of the
leading Shenzhen-based end-to-end supply chain solution providers
in China, focusing on cross-border logistics services.
Headquartered in Shenzhen, the Company benefits from the unique
geographical advantages of providing a high degree of support for
ocean, air, and overland logistics. The Company has established a
global operation nexus featuring logistic facilities throughout
major transportation hubs in China and globally, with footprints in
12 provinces in Mainland China and 16 countries across six
continents. Jayud offers a comprehensive range of cross-border
supply chain solution services, including freight forwarding,
supply chain management, and other value-added services. With its
strong service capabilities and research and development
capabilities in proprietary IT systems, the Company provides
customized and efficient logistics solutions and develops
long-standing customer relationships. For more information, please
visit the Company’s website: https://ir.jayud.com.
Forward-Looking Statements
Certain statements in this announcement are
forward-looking statements. 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, including the expectation that the Offering will be
successfully completed. Investors can identify these
forward-looking statements by words or phrases such as “may”,
“will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”,
“plan”, “believe”, “is/are likely to”, “potential”, “continue” or
other similar expressions. 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 SEC.
For more information, please contact:
Jayud Global Logistics LimitedInvestor Relations
DepartmentEmail: ir@jayud.com
Investor Relations Contact:Matthew Abenante,
IRCPresidentStrategic Investor Relations, LLC Tel:
347-947-2093Email: matthew@strategic-ir.com
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