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Jayud Logistics boosts e-commerce with new center

EditorNatashya Angelica
Published 21/05/2024, 18:24
JYD
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SHENZHEN, China - Jayud Global Logistics Limited (NASDAQ: JYD), a prominent supply chain solutions provider, announced the official certification of its Longgang e-Commerce Operation Center. This certification marks a significant enhancement in the company's e-commerce logistics capabilities, with the center now processing an increased volume of small cross-border parcels.

The center, which began operations in February 2024, initially handled around 15 containers daily under customs supervision code 9610, designed for e-commerce exports. By April, this capacity had expanded to 50 containers per day and is expected to reach 60-70 by the end of May, with ambitions to eventually process 200 containers daily.

Jayud's advanced logistics solutions aim to set high industry standards and provide exceptional service to its global clients. The certification allows the operation center to increase Jayud's revenue through processing fees and strategically enables the company to offer a wider range of services, including customs declarations and comprehensive shipping solutions across road, air, sea, and rail.

In collaboration with Shenzhen Airport Customs and the Shenzhen Pinghu South Sino-Europe Railway, Jayud is refining export processes, ensuring efficient and seamless customer experiences through air and rail cargo.

Xiaogang Geng, Jayud's CEO, stated that the Longgang e-Commerce Operation Center is a strategic addition to their operations, aiming to meet the growing demands of global e-commerce markets.

Moreover, Jayud hosted an educational event at the center, focusing on the cross-border e-commerce industry's current state, opportunities, and challenges. The event gathered industry experts, entrepreneurs, and government officials to discuss policy support, tax incentives, and compliance with international regulations.

The company, headquartered in Shenzhen, leverages its geographic location to support ocean, air, and overland logistics. It operates a global network with facilities in major transportation hubs in China and 16 countries across six continents. Jayud offers a broad range of services, including freight forwarding, supply chain management, and value-added services. Its proprietary IT systems enhance service capabilities and customer relationships.

This announcement is based on a press release statement and includes forward-looking statements that are subject to risks, uncertainties, and assumptions. Actual results could differ materially from those anticipated.

InvestingPro Insights

Amidst the operational advancements of Jayud Global Logistics Limited (NASDAQ: JYD), InvestingPro data and insights reveal a challenging financial landscape for the company. With a market capitalization of 15.18 million USD, Jayud is trading at a low revenue valuation multiple, which may reflect investor concerns over the company's financial health.

The revenue for the last twelve months as of Q4 2023 was reported at 70.14 million USD, yet the company has experienced a significant decline in revenue growth of -23.64% during the same period. This contraction highlights potential headwinds in scaling its operations despite the recent certification of its Longgang e-Commerce Operation Center.

An InvestingPro Tip indicates that Jayud has been quickly burning through cash, a critical factor for investors considering the company's ability to sustain its expansion and manage operational costs. The company's stock has also taken a considerable hit, with a 1-week price total return of -10.0% and a 1-month price total return of -21.43%, suggesting recent market performance has not favored Jayud's shares.

Moreover, Jayud does not pay a dividend to shareholders, which may influence the investment decisions of those seeking regular income streams in addition to capital gains. With these financial metrics and market performance indicators, investors can gain a clearer picture of Jayud's current standing and future prospects.

For those interested in a deeper dive into Jayud's financials and stock performance, InvestingPro offers additional insights and metrics. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription to access a full suite of InvestingPro Tips, with 14 more tips available to help guide investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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