Good News on Listing | Frost & Sullivan Assists Jayud Global Logistics Ltd. in Successful US Listing (NASDAQ:JYD)

Jayud Global Logistics Ltd. (hereinafter referred to as "Jia Yuda") successfully listed on April 21, 2023, with the company planning to issue 1,250,000 Class A ordinary shares at an issue price of $4.00 per share.

During the process of listing in the United States, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the writing of relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important sections), helping the issuer communicate with the SEC and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various SEC issues related to the industry.

The company is a leading end-to-end logistics solution provider in Shenzhen;

The company has a complete and convenient cross-border logistics network to improve efficiency and reduce logistics costs;

The company is located in Shenzhen, with geographical advantages in logistics, business, economy, and policy;

The company has strong and highly integrated logistics service capabilities;

The company has the ability to provide customized integrated logistics and freight forwarding services;

The company has the ability to develop information technology systems to improve operational efficiency;

The company has long-term cooperative customers with diversified industries;

The company has a visionary and experienced management team.

According to the Frost & Sullivan report:

Calculated by end-to-end cross-border logistics solution revenue, the company ranks fifth among Shenzhen's end-to-end logistics solution providers.

From 2017 to 2021, the global end-to-end cross-border logistics solution market, in terms of revenue, increased from approximately $122.8 billion to approximately $537.8 billion, with an annual compound growth rate of about 44.7% during this period. In 2020, the global outbreak of the COVID-19 pandemic broke the balance between cargo supply and freight demand, resulting in exponential growth in the costs of sea and air transportation from 2020 to 2021. The global end-to-end cross-border logistics solution market grew rapidly, from approximately $211.8 billion in 2020 to approximately $537.8 billion in 2021. In the future, under the dual influence of increased e-commerce demand and freight capacity shortages, it is expected that sea and air transportation prices will fluctuate at a higher level compared to before the pandemic.

Source: Frost & Sullivan Report

Cross-border logistics solutions mainly refer to a series of services throughout the entire delivery process of cross-border goods, including sea transportation, air transportation, warehouse operations, warehousing, truck transportation, customs clearance, and last-mile delivery, to facilitate the transfer of goods from the shipper to the recipient located in different countries. End-to-end cross-border logistics solutions refer to providing sea or shipping services during the delivery process of cross-border goods, and adding one or more other services to both the first and last legs of sea or shipping services.

Sea and air transportation logistics services are the most important component of global cross-border logistics solutions. The maritime market has maintained stable growth in recent years. As a convenient and cost-effective mode of transportation used by importers and exporters, maritime services play a key role in cross-border logistics services. In recent years, the global maritime market has experienced stable growth, with an annual compound growth rate of about 2.4% for freight volume from 2017 to 2021.

With the development of the global retail market and e-commerce market, it is expected that exports will continue to drive cross-border transportation demand. By 2026, the global maritime market is expected to reach approximately 260 million TEUs (standard containers) in terms of freight volume, with an annual compound growth rate of 4.8% between 2021 and 2026. Due to the growth of international trade, from 2017 to 2018, global air freight volume increased from approximately 197.2 billion FTKs (tons-kilometers) to approximately 203.3 billion FTKs (tons-kilometers).

Against the backdrop of Sino-US trade tensions and a global economic slowdown, air freight volume decreased by about 2.8%. Since 2020, the COVID-19 pandemic has led to a sharp decline in air freight volume across the industry. Restrictive regulations on international travel have also greatly reduced the number of air traffic, resulting in a reduction in available passenger-cargo capacity, which was about 60% of international air freight capacity before the pandemic.

In addition, the development of international trade has been suppressed by the economic slowdown. Therefore, in terms of freight volume, the air transportation market size was approximately 161.1 billion FTKs (tons-kilometers) in 2020. Since 2021, air shortages have been alleviated to some extent, and air freight volume increased to approximately 184.5 billion FTKs (tons-kilometers). As more countries begin to relax aviation travel restrictions, international air freight volume is expected to return to pre-pandemic levels.

Source: Frost & Sullivan Report