Core Viewpoint - The escalation of the global trade war in 2025 has impacted the cross-border logistics industry, prompting companies to adopt diversification strategies and prepare ample cash flow for a "prolonged battle," with Wuhan-based World Road Inc. seeking to raise capital through the public market [1] Group 1: Company Overview - World Road Inc., established in 2020, focuses on end-to-end comprehensive logistics solutions, particularly in cross-border freight services connecting China with global markets [2] - The company has established regional hubs in major cities such as Shanghai, Wuhan, and Shenzhen, playing a crucial role in its cross-border logistics operations [2] - World Road Inc. has built a close partnership network with over 100 clients and suppliers, including major e-commerce platforms and logistics service providers [2] Group 2: Financial Performance - For the fiscal year 2024, World Road reported revenues of approximately 130 million RMB, a significant decline of 63.17% year-on-year, while net profit turned from a loss of 1.599 million RMB to a profit of 190,000 RMB [1][5] - In the first half of fiscal year 2025, the company achieved revenues of 224 million RMB, a staggering increase of 573.32% year-on-year, with a net profit of 5.675 million RMB compared to a loss of 1.373 million RMB in the same period of the previous year [1][6] Group 3: Business Model and Strategy - World Road's services are divided into two main categories: modular freight forwarding and comprehensive logistics solutions, allowing clients to choose individual services or a combination [3] - The significant revenue drop in fiscal year 2024 was attributed to a strategic reduction in low-margin traditional modular freight forwarding services, which saw an 82% decline in revenue [4] - The comprehensive logistics solutions gained popularity, with the number of packages delivered increasing from 480,000 to 1.12 million, leading to a revenue increase of 188.6% [4][5] Group 4: Market Challenges - Despite the successful transformation, World Road faces challenges such as intense market competition and potential price wars, which have shifted the industry into a "negative profit survival battle" [8] - The company's high customer concentration poses risks, with the top four clients accounting for 92.4% of revenue in the first half of fiscal year 2025, increasing from 66% in fiscal year 2024 [9][11] - Uncertainties in U.S. global tariff negotiations add pressure on small and medium-sized enterprises in the cross-border logistics sector, making diversification essential for survival [11]