Shengfeng Development Limited Secures Contract Renewal with BYD

Rhea-AI Summary

Shengfeng Development (NASDAQ: SFWL), a contract logistics company, has renewed its logistics services contract with BYD Co. , a major player in the electric vehicle and renewable energy industry. This renewal builds on a successful partnership that began in January 2023. Under the contract, Shengfeng will continue providing critical logistics services for BYD's operations.

The collaboration has been a significant growth driver for Shengfeng's new energy sector. In fiscal year 2023, BYD contributed over 25.7 million RMB to Shengfeng's revenue, while in the first half of fiscal year 2024, revenues from BYD reached 24.5 million RMB. Shengfeng's new energy sector has shown substantial growth, with a 47% year-over-year increase in revenue for fiscal year 2023. In the first half of fiscal year 2024, the sector generated approximately 286.9 million RMB, now accounting for 17% of Shengfeng's total revenue.

Positive

• Renewed logistics services contract with major client BYD Co.
• 47% year-over-year revenue increase in the new energy sector for fiscal year 2023
• New energy sector revenue in first half of fiscal year 2024 surpassed total for fiscal year 2023
• New energy sector now accounts for 17% of Shengfeng's total revenue

Negative

• None.

News Market Reaction

+2.29%

1 alert

+2.29% News Effect

On the day this news was published, SFWL gained 2.29%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

FUZHOU, China, Sept. 24, 2024 /PRNewswire/ -- Shengfeng Development Limited ("Shengfeng" or the "Company") (NASDAQ: SFWL), a contract logistics company providing customers with integrated logistics solutions, today announced the renewal of its logistics services contract (the "Contract") with BYD Co. Ltd., China-based company principally engaged in the manufacture and sales of transportation equipment, including electric vehicles (EVs), battery technologies, and renewable energy ("BYD").

Since January 2023, BYD has been a key client for Shengfeng, and the renewal of the Contract underscores the success of this business alliance. Under the renewed Contract, Shengfeng will continue to provide critical logistics services, including the transportation of auto parts, molds, components, and fixtures for BYD's operations.

The collaboration with BYD has been a major growth driver for Shengfeng's new energy sector. In fiscal year 2023, BYD contributed over 25.7 million RMB (approximately $3.6 million USD) of Shengfeng's revenue, and in the first half of fiscal year 2024 alone, revenues from BYD reached 24.5 million RMB (approximately $3.4 million USD). This reflects both the strength of the business alliance and the growing logistics demands of the new energy industry.

Shengfeng's new energy sector has witnessed substantial growth, with revenue increasing by 47% year-over-year in fiscal year 2023. During the first half of fiscal year 2024, the new energy sector generated approximately 286.9 million RMB (around $40.2 million USD), surpassing the total revenue generated from the new energy sector in fiscal year 2023. The new energy sector now accounts for 17% of Shengfeng's total revenue, reflecting the Company's strategic focus on serving high-growth clients in the energy transition.

"We are excited to continue our work with BYD, which we believe is one of the most innovative and influential companies in the new energy industry," said Mr. Yongxu Liu, CEO of Shengfeng. "It is our view that this contract renewal highlights our capability to deliver high-quality, scalable logistics solutions for world-class clients and further solidifies our position in the booming new energy sector."

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.

View original content:https://www.prnewswire.com/news-releases/shengfeng-development-limited-secures-contract-renewal-with-byd-302256836.html

SOURCE Shengfeng Development Limited

FAQ

What is the significance of Shengfeng Development 's contract renewal with BYD?

The contract renewal with BYD underscores the success of their business alliance and solidifies Shengfeng's position in the growing new energy sector. It demonstrates Shengfeng's ability to provide high-quality, scalable logistics solutions for world-class clients.

How much revenue did BYD contribute to Shengfeng Development (SFWL) in fiscal year 2023?

In fiscal year 2023, BYD contributed over 25.7 million RMB (approximately $3.6 million USD) to Shengfeng's revenue.

What percentage of Shengfeng Development 's (SFWL) total revenue comes from the new energy sector?

As of the first half of fiscal year 2024, the new energy sector accounts for 17% of Shengfeng's total revenue.

How much did Shengfeng Development 's (SFWL) new energy sector grow in fiscal year 2023?

Shengfeng's new energy sector experienced substantial growth, with revenue increasing by 47% year-over-year in fiscal year 2023.