Core Viewpoint - The company, Hicheng Bonda, is strategically adjusting its operations by terminating a leasing agreement for its subsidiary in the U.S. due to unfavorable market conditions and high operational costs, aiming to enhance supply chain efficiency and maintain competitiveness in the cross-border e-commerce logistics sector [1][2]. Group 1: Leasing Agreement Termination - On June 30, Hicheng Bonda announced the termination of a leasing agreement with Palmtree Acquisition Corporation for its subsidiary, Bondex Logistics Seattle Corp, which was originally signed on April 12, 2022, for a total rent of $27.8862 million over seven years [1]. - The termination was agreed upon due to global economic fluctuations and trade policy impacts, leading to lower-than-expected market demand and high operational costs, which exceeded business revenues [2]. - The company will incur a termination fee of $3.35 million, with an estimated liability of $2.1649 million recognized for the non-recoverable deposit and an additional credit impairment loss of $0.9915 million [2]. Group 2: Strategic Adjustments - Hicheng Bonda has been focusing on supply chain logistics, providing end-to-end smart logistics services, and aims to optimize its supply chain layout by adopting more flexible warehousing models to reduce fixed costs and enhance liquidity [2][3]. - The company plans to expand its overseas network in Southeast Asia and Europe, aligning with the "Belt and Road" initiative, while consolidating its shipping routes between China, Southeast Asia, and the U.S. [3]. - The strategic adjustments are in response to the current external environment and are aimed at supporting Chinese enterprises in their international expansion efforts [3].