Smart Logistics Global Ltd (NASDAQ: SLGB)

Smart Logistics Global Limited is a business-to-business contract logistics solution provider in the People's Republic of China focusing on industrial raw materials line-haul transportation business. The company provides land-only transportation services and leverages its proprietary Transportation Management System (TMS) to offer cost-efficient, flexible, and reliable logistics solutions tailored to customer needs. It serves large institutional customers in sectors such as paper, steel, coal, and food, maintaining long-term relationships through yearly contracts.

The company generates revenue from transportation services, with total revenue of RMB706.7 million, RMB678.2 million, and RMB628.5 million (US$89.9 million) for the years ended December 31, 2023, 2024, and 2025, respectively. Revenue is derived from providing logistics solutions including truck selection, route optimization, and transportation execution for raw materials such as paper, steel, coal, and food products. The company also earns interest income from loans provided to third-party transportation suppliers, though this is not a primary revenue source.

The company operates through the following segments: Transportation Services, Infrastructure Development, and Value-Added Services.

• Transportation Services: This segment provides land-only transportation of industrial raw materials using a network of FTL centres and an in-house fleet of trucks. It utilizes the proprietary Transportation Management System (TMS) to optimize routes, select qualified truckers, and manage delivery schedules. The segment serves major customers in the paper, steel, coal, and food industries through long-term contracts.

• Infrastructure Development: This segment focuses on investing in high-end digital road logistics infrastructure, including the smart logistics park in Jiangxi Province with approximately 110,000 square meters of land. It involves construction of warehouses, cold chain storages, packaging lines, data centers, and truck service bays to support contract logistics operations. The segment aims to enable future expansion into less-than-truckload (LTL) operations through upgraded logistics hubs.

• Value-Added Services: This segment provides truck parking, freight storage, and truck examination and maintenance services, with Fuzhou Feiyi already offering vehicle repair and maintenance services inside the smart logistics park. It plans to expand into truckers’ catering, living, insurance, and parts vendor services, as well as new energy truck leasing and financing by the end of 2026. These services aim to create a one-stop shop for truckers and diversify the company’s revenue stream.

Smart Logistics Global Limited holds a competitive position in China's fragmented contract logistics industry, recognized as a National AAAA Logistics Enterprise by the China Federation of Logistics and Procurement. Its competitive advantages include proprietary data analytics through the TMS system, a scalable operation model, long-standing relationships with major customers, and a rigorous trucker vetting process ensuring safety and service quality. The company differentiates itself from digital matching platforms by providing premium contract logistics solutions over contracted periods rather than facilitating direct shipper-trucker engagements.

The company serves large institutional customers in the manufacturing sector, including Lee & Man Paper Manufacturing Ltd and China Starch Holdings Limited, both listed on the Hong Kong Stock Exchange. It also works with major trading enterprises in the coal and steel industries located in Southwest and Northeast China. Customers typically enter into one-year transportation services contracts, with some maintaining relationships for up to six years, and the company seeks to renew these contracts periodically through bidding processes.