FUZHOU,
China, Nov. 11, 2024 /PRNewswire/ -- Shengfeng
Development Limited ("Shengfeng" or the "Company") (NASDAQ: SFWL),
a contract logistics company in China providing customers with integrated
logistics solutions, announced today a strategic expansion into the
low-altitude economy in China. The
Company believes this move will allow it to leverage its logistics
expertise in an emerging field that integrates drone technology for
streamlined, efficient logistics solutions across diverse sectors,
particularly in high-demand and remote regions.
China's low-altitude
economy—encompassing civil and commercial drone operations in
airspace up to 1,000 meters—is projected to grow rapidly, with the
total market value expected to exceed 1
trillion yuan (approximately 140
billion USD) by 2026, according to recent studies by CCID
Consulting Co., Ltd., a subsidiary of the China Center for
Information Industry Development under China's Ministry of Industry and Information
Technology. Such studies indicate that within this sector,
low-altitude logistics has emerged as a transformative tool for
urban parcel delivery, medical supply transport, and agricultural
management, providing timely, cost-effective solutions for
essential services. The potential applications of drone technology
within the sector are expected to be extensive, and are anticipated
to offer solutions that reduce operational costs, optimize
logistics networks, and enhance last-mile delivery
capabilities.
As an experienced logistics provider in China, the Company is entering the
low-altitude logistics sector with the expectation that it may be
valued by industries that stand to benefit from what is anticipated
to be capable of providing more agile and efficient logistics
services, such as healthcare, e-commerce, and agriculture. The
Company's planned low-altitude logistics services aim to complement
existing supply chains with customized, drone-based delivery
options that can reach previously underserved areas, by which it
expects to improve connectivity and response times.
"Expanding into China's
low-altitude economy is a natural step forward for Shengfeng as we
continue to grow and innovate in response to market needs," said
Mr. Yongxu Liu, the Company's Chairman and Chief Executive Officer.
"Our goal is to apply our logistics expertise and infrastructure to
support critical industries in ways that enhance service
capabilities and reach. We look forward to our role in advancing
innovations in the low altitude economy. The low-altitude economy's
growth is fueled by advancements in drone technology, regulatory
support, and increasing demand for logistics solutions that serve
remote regions. With nearly two decades of experience in
China's logistics industry, we
expect Shengfeng to be well-positioned to contribute significantly
to the development of this sector and to expand its service
offerings into new, high-potential markets."
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
