Shengfeng Development Limited Secures Contract Renewal with BYD

FUZHOU, China, Sept. 24, 2024 /PRNewswire/ -- Shengfeng Development Limited ("Shengfeng" or the "Company") (NASDAQ: SFWL), a contract logistics company providing customers with integrated logistics solutions, today announced the renewal of its logistics services contract (the "Contract") with BYD Co. Ltd., China-based company principally engaged in the manufacture and sales of transportation equipment, including electric vehicles (EVs), battery technologies, and renewable energy ("BYD").

Since January 2023, BYD has been a key client for Shengfeng, and the renewal of the Contract underscores the success of this business alliance. Under the renewed Contract, Shengfeng will continue to provide critical logistics services, including the transportation of auto parts, molds, components, and fixtures for BYD's operations.

The collaboration with BYD has been a major growth driver for Shengfeng's new energy sector. In fiscal year 2023, BYD contributed over 25.7 million RMB (approximately $3.6 million USD) of Shengfeng's revenue, and in the first half of fiscal year 2024 alone, revenues from BYD reached 24.5 million RMB (approximately $3.4 million USD). This reflects both the strength of the business alliance and the growing logistics demands of the new energy industry.

Shengfeng's new energy sector has witnessed substantial growth, with revenue increasing by 47% year-over-year in fiscal year 2023. During the first half of fiscal year 2024, the new energy sector generated approximately 286.9 million RMB (around $40.2 million USD), surpassing the total revenue generated from the new energy sector in fiscal year 2023. The new energy sector now accounts for 17% of Shengfeng's total revenue, reflecting the Company's strategic focus on serving high-growth clients in the energy transition.

"We are excited to continue our work with BYD, which we believe is one of the most innovative and influential companies in the new energy industry," said Mr. Yongxu Liu, CEO of Shengfeng. "It is our view that this contract renewal highlights our capability to deliver high-quality, scalable logistics solutions for world-class clients and further solidifies our position in the booming new energy sector."

About Shengfeng Development Limited

Shengfeng Development Limited is a contract logistics company in China providing customers with integrated logistics solution services. Established in 2001, the Company has developed extensive and reliable transportation networks in China, covering 341 cities across 31 provinces, as of June 30, 2024. The Company provides integrated logistics solutions comprised of B2B freight transportation services, cloud storage services, and value-added services. The Company applies well-established management system and operation procedures to assist companies in China to increase efficiency and improve their own management systems with respect to transportation, warehousing and time management. For more information, please visit the Company's website: http://ir.sfwl.com.cn/.

Forward-Looking Statements

This press release contains "forward-looking statements." Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.

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SOURCE Shengfeng Development Limited