{"id":14522,"date":"2023-03-16T18:54:09","date_gmt":"2023-03-16T15:54:09","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=14522"},"modified":"2024-04-15T13:51:20","modified_gmt":"2024-04-15T10:51:20","slug":"ipo-of-shengfeng-development-a-contract-logistics-services-provider-in-china","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2023\/03\/16\/ipo-of-shengfeng-development-a-contract-logistics-services-provider-in-china\/","title":{"rendered":"IPO of Shengfeng Development: A Contract Logistics Services Provider in China"},"content":{"rendered":"\n

In this article, we will talk about Shengfeng Development Limited and its IPO on the NASDAQ, which is due to take place on 23 March. Shengfeng Development Limited, a provider of contract logistics services in China, is one of the leaders in the industry.<\/p>\n\n\n\n

We will look at the features of the issuer’s business model, the outlook for its addressable market, its main competitors, its financial situation, strengths and weaknesses, and the details of its initial public offering.<\/p>\n\n\n\n

<\/span>Shengfeng Development in brief<\/span><\/h2>\n\n\n\n
\"Shengfeng<\/figure>\n\n\n\n

Shengfeng Development Limited provides contract logistics services in the Chinese market. The issuer undertakes the management of all logistics processes for its clients: warehousing, security, forwarding, customs clearance, transportation of goods, etc. The firm is fully responsible for the storage, packing, and loading of cargo, the selection of the optimum delivery route, and the necessary equipment and transport.<\/p>\n\n\n\n

Shengfeng Development Limited was established in 2001 and registered in the Cayman Islands in 2020 to optimise taxation costs. Its head office is in Fuzhou, in the Chinese Fujian Province. Yongxu Liu is the CEO, having previously served as head of the vehicle management department at Shenghui Logistics Group Co., Ltd.<\/p>\n\n\n\n

\"Shengfeng<\/a>
Shengfeng Development Limited’s corporate structure<\/em><\/figcaption><\/figure>\n\n\n\n

Shengfeng Development Limited operates in China through a number of subsidiaries. The issuer's customers include more than 4000 firms, the largest of which are: JD.com Inc., Contemporary Amperex Technology Co., Limited, Xiaomi Corporation, Schneider Electric SE, and Bright Dairy & Food Co.<\/p>\n\n\n\n

\"Shengfeng<\/a>
Shengfeng Development Limited’s clients<\/em><\/figcaption><\/figure>\n\n\n\n

The company has been operating for 22 years in 341 cities in 31 provinces across China, where it is operating 35 sorting centres, 42 customer offices, and a fleet of more than 600 trucks.<\/p>\n\n\n\n

\"Shengfeng<\/a>
Shengfeng Development Limited’s clients<\/em><\/figcaption><\/figure>\n\n\n\n

The China Federation of Logistics & Purchasing (CFLP) ranked Shengfeng Development Limited among the top fifty transport companies in the country. Separately, the CFLP highlighted the issuer's successful performance during the COVID-19 pandemic.<\/p>\n\n\n\n

<\/span>Outlook for Shengfeng Development’s addressable market<\/span><\/h2>\n\n\n\n

According to 360 Market Updates, the global logistics contracting market was estimated at USD 180.1 billion in 2022. It is expected to reach USD 242.5 billion in 2028. The projected compound annual growth rate (CAGR) from 2022 to 2028 inclusive is 3.9%.<\/p>\n\n\n\n

<\/span>Main competitors:<\/strong><\/span><\/h2>\n\n\n\n