SHENGFENG DEVELOPMENT Ltd (NASDAQ: SFWL)

SHENGFENG DEVELOPMENT Ltd is a holding company incorporated under the laws of the Cayman Islands. Although it does not conduct direct operations, it controls the economic interests of a variable interest entity and its subsidiaries that provide contract logistics services in China. The company’s core activities include B2B freight transportation services, cloud storage services and value added services. Through its network it serves a broad base of manufacturers and trading companies across the country.

The company generates revenue primarily from three sources: B2B freight transportation services, cloud storage services and value added services. For the fiscal year ended December 31 2025 consolidated revenue was approximately 572.5 million US dollars compared with 504.2 million in 2024 and 404.1 million in 2023. Freight transportation accounted for about 96.9 percent of total revenue in 2025 while cloud storage and value added services contributed the remainder.

The company operates through the following segments: B2B freight transportation services, cloud storage services and value added services.

• B2B freight transportation services: This segment offers full truckload and less than truckload solutions for goods weighing over 500 kilograms, using a combination of owned trucks and third party carriers. It operates 26 regional sorting centers, 57 Cloud OFCs and 14 service outlets across China, managing a fleet of approximately 420 self owned vehicles and coordinating with over 122000 independent transport providers.

• Cloud storage services: This segment provides warehouse storage and management through 57 Cloud OFCs with a total area of about 5.6 million square feet. Services include storage, pick and pack, kitting, fulfillment, delivery process management and various value added options. Contracts typically run from one to five years and are tailored to client volume and space needs.

• Value added services: This segment encompasses a range of supplementary offerings such as collection on delivery, customs declaration, delivery upstairs, packaging, pay at arrival, return proof of delivery and shipment protection. These services are designed to meet specific client needs and are often bundled with core transportation or storage contracts.

The company ranks among the leading contract logistics providers in China with more than two decades of operational history since 2001. Its network spans 382 cities across 32 provinces giving it nationwide reach. Main competitors include Sinotrans Logistics Ltd., Beijing Changjiu Logistics Co., Ltd. and Kerry Logistics (EAS) Limited. Competitive advantages stem from its extensive infrastructure, scalable integrated model, strong operational efficiency, proprietary technology platforms and an experienced management team.

The company serves over 4000 medium to large scale manufacturers and trading companies in China. Its client base spans industries such as manufacturing, energy, new energy, telecommunications, internet, fashion, fast moving consumer goods, publishing, agriculture and e commerce. Notable customers include CATL Battery, Bright Dairy, SF Express, Schneider Electric, Tesla and Xiaomi. No single account represents more than five percent of total revenue.