SHENZHEN, China, Jan. 23,
2024 /PRNewswire/ -- Jayud Global Logistics Limited
(NASDAQ: JYD) ("Jayud" or the "Company"), a leading end-to-end
supply chain solution provider based in Shenzhen, specializing in cross-border
logistics, today announced that Shenzhen Jayud Logistics Technology
Co., Ltd., a wholly-owned subsidiary of Jayud in China, entered into equity purchase agreements
to acquire 51% stakes in two international logistics companies,
respectively, namely Qingdao Oranda Supply Chain Management Co.,
Ltd., and Shenzhen Jiniu International Logistics Co., Ltd.
These acquisitions demonstrate the Company's approach to growth,
both organically and through strategic acquisitions, enhancing its
overall market position while expanding the Company's client base,
service offerings, and geographic footprint.
Acquisition Profiles:
- Qingdao Oranda Supply Chain Management Co., Ltd.
Shenzhen Jayud Logistics Technology Co., Ltd. ("Shenzhen
Jayud"), a wholly-owned subsidiary of Jayud, entered into an equity
purchase agreement to acquire 51% of the equity interests in
Qingdao Oranda Supply Chain Management Co., Ltd. ("Oranda").
Headquartered in Qingdao,
Shandong, Oranda is a premier
international logistics company. Renowned for competitive pricing
and strategic use of ship-owner resources, Oranda has cultivated an
extensive client base and a proficient team. With branches in key
ports across China and a global
presence through agents in the Americas, Europe, Africa, and Southeast Asia, Oranda specializes in
comprehensive logistics services for specialty goods. Its
innovative chain-service model and intelligent booking system offer
a complete range of services, including cargo identification,
transportation, reinforcement, warehousing, customs clearance, and
insurance.
The corresponding equity interests in Oranda shall be
transferred to Shenzhen Jayud upon the execution of the equity
purchase agreement, while the purchase price of this transaction,
depending on Oranda's actual annual average net profit from the
acquisition closing date to December 31,
2026, will be paid partially in cash and the remainder
in Class A ordinary shares of
Jayud in 2027. If Oranda's annual average net profit from the
acquisition closing date to December 31,
2026 is less than approximately US$700,000 (RMB 5
million), Jayud reserves the right to cancel this equity
acquisition transaction.
- Shenzhen Jiniu International Logistics Co., Ltd.
Shenzhen Jayud also entered into an equity purchase agreement to
acquire 51% of the equity interests in Shenzhen Jiniu
International Logistics Co., Ltd. ("Jiniu").
Established in November 2021,
Shenzhen Jiniu International Logistics Co., Ltd. operates in
Shenzhen's Longgang District,
specializing in supply chain management, domestic cargo
transportation agency, loading/unloading, and information
consulting services within the Middle
East trade lane. Jiniu holds licenses for the sale of
pre-packaged food, international cargo transportation agency, cargo
import and export, and technology import and export. Committed to
excellence, Jiniu provides integrated logistics solutions and a
diverse range of services that contributes to the efficient
management of supply chains and facilitates seamless domestic and
international cargo transportation.
The corresponding equity interests in Jiniu shall be transferred
to Shenzhen Jayud upon the execution of the equity purchase
agreement, while the final purchase price for this transaction,
depending on Jiniu's annual average net profit from the acquisition
closing date to December 31, 2026,
will be paid partially in cash and the remainder in Class A ordinary shares of Jayud in 2027.
If Jiniu's annual average net profit from the acquisition closing
date to December 31, 2026 is less
than approximately US$421,000
(RMB 3 million), Jayud reserves the
right to cancel this equity acquisition transaction.
Xiaogang Geng, Chairman of the
Board and CEO of Jayud, commented, "These acquisitions mark pivotal
steps in Jayud's strategic expansion plan. These acquisitions
indicate more than just an expansion of our market presence; they
represent a calculated approach to incorporating businesses that
bring unique strengths and capabilities, enhancing our
comprehensive logistics offerings. By acquiring these companies, we
are not just growing in size, but also in competence, diversifying
our service portfolio and extending our geographical reach."
"Our acquisition strategy is driven by performance-based
investment. We believe in incentivizing excellence, which is why
the final purchase prices for Oranda and Jiniu are directly tied to
their respective profit performances. This approach ensures that we
are investing in potential and rewarding success. By aligning the
purchase cost with performance metrics, we are essentially backing
companies that demonstrate the capability to thrive and contribute
significantly to our bottom line."
"This method of structured investment is a testament to our
commitment to not only grow Jayud but to enhance our operational
quality and market competitiveness. We are paying more for better
performance, ensuring that we invest in entities that are not just
profitable, but also align with our commitment towards excellence
in cross-border logistics. These strategic acquisitions are
integral to our vision of becoming the leader in the global
logistics space, and we are confident that this approach will yield
substantial long-term benefits for Jayud and our stakeholders,"
concluded Mr. Geng.
About Jayud Global Logistics Limited
Jayud Global Logistics Limited is one of the leading
Shenzhen-based end-to-end supply
chain solution providers in China,
focusing on cross-border logistics services. Headquartered in
Shenzhen, the Company benefits
from the unique geographical advantages of providing a high degree
of support for ocean, air, and overland logistics. The Company has
established a global operation nexus featuring logistic facilities
throughout major transportation hubs in China and globally, with footprints in 12
provinces in Mainland China and 16 countries across six continents.
Jayud offers a comprehensive range of cross-border supply chain
solution services, including freight forwarding, supply chain
management, and other value-added services. With its strong service
capabilities and research and development capabilities in
proprietary IT systems, the Company provides customized and
efficient logistics solutions and develops long-standing customer
relationships. For more information, please visit the Company's
website: https://ir.jayud.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking
statements. 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, including the
expectation that the Offering will be successfully completed.
Investors can identify these forward-looking statements by words or
phrases such as "may", "will", "expect", "anticipate", "aim",
"estimate", "intend", "plan", "believe", "is/are likely to",
"potential", "continue" or other similar expressions. 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 SEC.
For more information, please contact:
Jayud Global Logistics Limited
Investor Relations
Department
Email: ir@jayud.com
Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
View original
content:https://www.prnewswire.com/news-releases/jayud-announces-entry-into-agreements-to-acquire-two-international-logistics-companies-embarking-on-an-acquisition-strategy-to-expand-service-offerings-and-geographic-footprint-302041904.html
SOURCE Jayud Global Logistics Limited