Hosted Event with Local Government Officials, Taxation Bureau, and Customs Officials to Educate and Promote the Center SHENZHEN, China, May 21, 2024 (GLOBE NEWSWIRE) -- 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 that the Longgang e-Commerce Operation Center (the "Center"), owned by Shenzhen Kuaiyou Tech Company, of which Jayud is an investor and the oper ...

Core Viewpoint - Jayud Global Logistics Limited has received a notification from Nasdaq regarding non-compliance with the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market, necessitating a compliance plan submission within 45 days [1] Company Overview - Jayud Global Logistics Limited is a leading end-to-end supply chain solution provider based in Shenzhen, specializing in cross-border logistics services [2] - The company operates globally with logistics facilities in 12 provinces in Mainland China and 16 countries across six continents, offering services such as freight forwarding and supply chain management [2] - Jayud leverages its strong service capabilities and proprietary IT systems to provide customized logistics solutions and maintain long-term customer relationships [2]

Company Overview - The company is a leading Shenzhen-based end-to-end supply chain solution provider in China, focusing on cross-border logistics services [12]. - As of December 31, 2023, the company has obtained all necessary licenses, permits, and registrations from PRC government authorities for its operations [16]. - The company has not received any notice from the CAC regarding being a critical information infrastructure operator, nor any request for a cybersecurity review related to its initial public offering [18]. - The company’s auditor, Marcum Asia, is subject to PCAOB inspections, ensuring compliance with applicable professional standards [21]. Financial Performance - Revenues for 2023 decreased to RMB 497,868,199, a decline of 23.5% compared to RMB 651,991,593 in 2022 [24]. - Gross profit for 2023 turned negative at RMB (15,870,632), compared to a positive gross profit of RMB 37,386,114 in 2022 [24]. - Operating expenses surged to RMB 63,883,988 in 2023, up 74.3% from RMB 36,683,906 in 2022 [24]. - Net loss for 2023 was RMB (80,275,344), a significant drop from a net income of RMB 1,377,897 in 2022 [24]. - Total assets decreased from RMB 125,422,314 in 2022 to RMB 100,450,600 in 2023, a decline of 19.9% [26]. - Total liabilities increased from RMB 94,524,727 in 2022 to RMB 126,182,673 in 2023, an increase of 33.5% [26]. - Cash and cash equivalents at the end of 2023 were RMB 26,605,028, down from RMB 40,266,725 at the end of 2022 [27]. - Net cash used in operating activities for 2023 was RMB (44,222,478), compared to RMB (15,231,895) in 2022 [27]. - The company reported a significant increase in accounts receivable, net rising to RMB 41,281,988 in 2023 from RMB 30,913,334 in 2022, an increase of 33.4% [26]. Regulatory Environment - The company is subject to the Holding Foreign Companies Accountable Act, which could impact the trading of its Class A ordinary shares if audit reports are not compliant [19]. - The CSRC Filing Rules require the company to file for any future overseas offerings, which could affect its ability to raise capital [18]. - The company has not received any inquiries or sanctions from the CSRC or other PRC governmental authorities regarding its listing status, but there remains significant uncertainty about future regulatory requirements for overseas offerings [119]. - The PRC government has announced intentions to increase oversight of overseas securities offerings, which could affect the company's ability to list on U.S. exchanges in the future [172]. - The PCAOB's inability to inspect auditors in mainland China and Hong Kong poses risks for the company's securities trading in the U.S. under the HFCA Act [177]. - The SEC has implemented rules to enforce compliance with the HFCA Act, which could impact the company's ability to trade its securities in the U.S. [187]. Market and Competition - The company faces intense competition and risks associated with trade restrictions that could adversely affect its financial condition and results of operations [30]. - The company is significantly affected by the development of international commerce and the e-commerce industry, with growth dependent on factors such as consumer spending and macroeconomic conditions [49]. - The company faces intense competition in the supply chain solutions and logistics services industry, which is highly fragmented and includes various existing market players [55]. - Revenue from the five largest customers accounted for approximately 42.3% of total revenues in 2023, indicating a significant reliance on a limited customer base [98]. - The total number of customers decreased from 1,879 in 2022 to 1,841 in 2023, highlighting potential challenges in customer retention and acquisition [101]. Operational Risks - The company faces legal and operational risks due to the regulatory environment in mainland China, which could adversely affect its business operations [14]. - The company may face credit risks due to potential defaults from customers, which could materially affect cash flow and financial condition [64]. - The company relies on third-party service providers for logistics, and any financial instability or reduced capacity among these providers could adversely impact operations and financial results [81]. - The company faces risks from fluctuations in China's road transportation market, which can affect cargo volumes and pricing, potentially leading to reduced revenue and growth opportunities [83]. - The company faces risks if customers reduce spending on third-party logistics services or shift to in-house solutions, which could adversely affect revenue [100]. Strategic Initiatives - The company expects expenses to continue to increase as it expands its business, which may grow faster than revenue [65]. - The company expects significant capital expenditures driven by customer demand and prevailing equipment prices, with future capital requirements being uncertain due to limited operating history [68]. - The company plans to establish larger, custom-designed warehouses to enhance storage capacity and logistics workflow, although expansion may strain resources [95]. - The company aims to achieve profitability and grow cash flows through deeper penetration of existing customers and expanding its customer base, but faces challenges in executing these strategies [102]. Technology and Innovation - The company faces risks related to the performance and reliability of its technology platform, which is critical for delivering supply chain solutions and logistics services [130]. - The company must keep up with technological advancements, including 5G and cloud computing, to maintain its competitive edge and avoid adverse effects on its business [134]. - The company has made significant investments in supply chain technologies and logistics services, which may require substantial capital expenditures [73]. Compliance and Governance - The company is subject to various anti-corruption and compliance laws, which if violated, could lead to significant fines and adversely affect business operations and reputation [143]. - The company has identified three material weaknesses in its internal control over financial reporting, including insufficient accounting staff and lack of formal internal control policies [152]. - The company is implementing measures to address identified weaknesses, such as hiring qualified accounting personnel and establishing an internal audit department [153]. External Factors - The COVID-19 pandemic has negatively impacted global economic activity, disrupting normal business operations and supply chains, particularly during the lockdown in Shanghai from April to May 2022 [121][122]. - Geopolitical tensions, including the Russia-Ukraine and Israel-Hamas conflicts, have caused significant volatility in energy markets, with oil prices trading above $100 per barrel as of March 18, 2022, potentially increasing operational costs [128]. - The company faces risks from natural disasters, epidemics, and geopolitical events that could disrupt operations and adversely affect financial results [158]. - Changes in China's economic, political, or social conditions could significantly impact the company's business and financial results, as most operations are based in China [163]. Data Security and Privacy - The evolving PRC regulatory landscape regarding data security and privacy may impose additional compliance requirements on the company [201]. - The Cybersecurity Law and subsequent regulations impose strict requirements on data protection, with penalties for violations including business license revocation [204]. - The company does not possess a large amount of personal information and thus is not subject to the cybersecurity review by the CAC [208]. - Compliance with PRC laws may require the company to suspend relevant business or face penalties, impacting financial condition [211].

SHENZHEN, China, Jan. 23, 2024 /PRNewswire/ -- 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 that Shenzhen Jayud Logistics Technology Co., Ltd., a wholly-owned subsidiary of Jayud in China, entered into equity purchase agreements to acquire 51% stakes in two international logistics companies, respectively, namely Qingdao Oranda Supply Chain Management Co., ...

Financial Performance - Revenues for the year ended December 31, 2022, were RMB 651,991,593 (approximately US$93,615,081), representing a 19.4% increase from RMB 545,593,497 in 2021[22] - Gross profit for 2022 was RMB 37,386,114 (approximately US$5,368,020), up from RMB 34,500,975 in 2021, indicating a gross margin improvement[22] - Operating profit decreased to RMB 702,208 (approximately US$100,825) in 2022 from RMB 12,807,764 in 2021, reflecting increased operating expenses[22] - Net income for 2022 was RMB 1,377,897 (approximately US$197,843), a significant decline from RMB 10,223,668 in 2021, highlighting challenges in profitability[22] - Total operating expenses rose to RMB 36,683,906 (approximately US$5,267,195) in 2022, compared to RMB 21,693,211 in 2021, driven by higher selling and administrative expenses[22] - Research and development expenses increased to RMB 2,096,317 (approximately US$300,996) in 2022, up from RMB 1,460,960 in 2021, indicating a focus on innovation[22] Assets and Liabilities - As of December 31, 2022, total assets decreased to RMB 125,422,314 from RMB 170,842,238 in 2021, representing a decline of approximately 26.6%[25] - Total liabilities decreased to RMB 94,524,726 in 2022 from RMB 154,071,959 in 2021, a reduction of about 38.7%[25] - Cash and cash equivalents at the end of 2022 were RMB 28,440,241, down from RMB 40,266,725 at the end of 2021, reflecting a decrease of approximately 29.3%[26] - Net cash provided by operating activities turned negative at RMB (15,231,895) for the year ended December 31, 2022, compared to RMB 4,239,582 in 2021, indicating a significant operational cash flow deterioration[26] - The company reported a net cash used in investing activities of RMB (5,728,754) for 2022, a substantial increase from RMB (634,871) in 2021, indicating increased capital expenditures[26] Regulatory Environment - As of December 31, 2022, the company had obtained all necessary licenses and permits for operations in China, but future regulatory changes may require additional approvals[15] - The company is not currently subject to the filing requirements with the China Securities Regulatory Commission (CSRC) for its initial public offering on Nasdaq in April 2023[16] - The Holding Foreign Companies Accountable Act poses a risk, as the company could face trading prohibitions if its auditor is not inspected by the PCAOB for two consecutive years[17] - The company has not received any formal inquiries or sanctions from the CSRC regarding its overseas listing, but future offerings may be subject to new regulatory requirements[16] - The CSRC released new regulations for overseas securities offerings and listings by domestic companies, effective March 31, 2023, which require filing for both direct and indirect offerings[171] Market and Competition - The company faces intense competition in the logistics industry, which could adversely affect its market share and operational results[29] - The company is significantly affected by macroeconomic factors and trade restrictions that may impact demand for its supply chain solutions and logistics services[29] - The company’s business growth is highly dependent on the development of international commerce and the e-commerce industry, which are sensitive to macroeconomic conditions[46] - The company faces intense competition in the supply chain solution industry, which is highly fragmented, potentially affecting revenue and profitability[51] - Trade disputes and tariffs between the PRC and the United States have contributed to increased market volatility and may adversely impact the company's operations[48] Customer Dependency - The company relies on a limited number of customers for a significant portion of its revenues, and the loss of key customers could negatively impact its financial performance[33] - Revenue from the five largest customers accounted for approximately 59.9%, 35.8%, and 46.1% for the years ended December 31, 2020, 2021, and 2022 respectively[89] Operational Challenges - The company may face challenges in meeting customer demand during peak seasons, which could adversely affect its competitive position[68] - The company may face challenges in obtaining adequate cargo space during peak seasons, which could damage its reputation[80] - The company relies on third-party service providers for transportation and logistics, and any failure in these relationships could adversely affect operations[84] - The company is sensitive to fluctuations in China's road transportation market, which can impact cargo volumes and revenue[77] Growth and Expansion - The company may require additional capital to pursue its business objectives, and failure to secure sufficient financing could adversely affect its financial condition[30] - The company may require significant capital for expansion plans, including logistics infrastructure and technology investments, which may not be available on acceptable terms[62] - The company plans to establish larger, custom-designed warehouses to increase storage capacity and improve logistics workflow[86] - The total number of customers increased from 535 in 2020 to 1,299 in 2021 and further to 1,879 in 2022, indicating a growth of approximately 251% from 2020 to 2022[93] Labor and Costs - The company has observed an overall tightening labor market, leading to increased labor costs and potential seasonal labor shortages[96] - Labor costs comprised 5.3%, 3.5%, and 3.6% of total operating expenses for the years ended December 31, 2020, 2021, and 2022, respectively[96] - The company may face significant increases in fuel prices, which could adversely affect gross profits if costs cannot be passed on to customers[100] Technology and Operations - The technology platform's performance is critical, and any disruptions could adversely affect business operations and results[117] - The company may face challenges in maintaining and upgrading its technology platform, leading to service outages and delays[117] Legal and Compliance Risks - The company is subject to various regulations and must maintain necessary licenses and permits, with potential penalties for non-compliance[102] - The company is subject to anti-corruption and anti-bribery laws, and non-compliance could result in severe penalties and impact financial condition[131] - The company faces increased costs and risks associated with compliance to evolving regulatory measures, which may divert management's focus from revenue-generating activities[136] Economic and Political Risks - The company’s operations are significantly influenced by economic, political, and legal developments in China, where it sources substantially all of its revenues[150] - Changes in China's economic policies or regulations could adversely affect the company's financial condition and results of operations[151] - The Chinese government has significant oversight and discretion over business operations, which could materially and adversely impact the company's results and future prospects[160] Taxation and Financial Reporting - The statutory enterprise income tax rate in China is 25%, but small low-profit enterprises can benefit from a reduced rate of 20% on 12.5% of their taxable income up to RMB 1 million[202] - If deemed a PRC resident enterprise, dividends to non-PRC individual shareholders may be taxed at 20%, while non-PRC enterprises face a 10% tax rate[197] - The PRC tax authorities have discretion to adjust taxable capital gains based on the fair value of transferred assets, potentially increasing tax costs[200]