Jayud Cements Shenzhen Foothold with Key Logistics Hub Control

SHENZHEN, China – November 25, 2025 – In a decisive move to tighten its grip on the world’s most vibrant e-commerce artery, Jayud Global Logistics (NASDAQ: JYD) announced today it has secured a 52% controlling stake in the Longgang Cross-Border E-Commerce Center. The transaction elevates the Shenzhen-based company from a minority partner to the strategic operator of a critical logistics hub, signaling a significant consolidation of power within China's undisputed trade gateway.

For financial analysts and industry observers, this isn't just a simple acquisition; it's a calculated play for dominance. By taking the helm of the Longgang Center, Jayud gains direct control over a facility that sits at the epicenter of a cross-border e-commerce market in Shenzhen that exceeded 372 billion RMB (approximately $51.5 billion) in 2024. This move is less about adding an asset and more about seizing control of a vital chokepoint in the global supply chain, positioning the company to dictate terms and drive efficiency in a fiercely competitive landscape.

A Strategic Consolidation in a Global Gateway

The Longgang Cross-Border E-Commerce Center is no small prize. It is a comprehensive, integrated facility that serves as the engine room for countless exporters, combining warehousing, customs clearance, freight forwarding, and digital supply chain management under one roof. The sheer volume flowing through its gates underscores its importance. In 2024 alone, the Center processed 13,978 full-size containers, representing an export value of $4.6 billion. This translates to 83,000 tons of cargo and a staggering 270 million individual parcels destined for consumers worldwide.

The momentum has continued unabated. In the first three quarters of 2025, the facility has already managed 6,863 containers and $2.45 billion in export value. These figures are a testament to Shenzhen's gravitational pull in global trade, a city that hosts over 150,000 cross-border e-commerce enterprises and has attracted 80% of the world’s top 20 platforms.

By converting its minority interest into a controlling stake, Jayud is betting it can harness this immense volume more effectively. The company's leadership has made its intentions clear. "Acquiring a controlling interest in the Longgang Cross-Border E-Commerce Center represents a pivotal step in consolidating our leadership in Shenzhen's vibrant logistics landscape," stated Xiaogang Geng, Chairman and CEO of Jayud. He added that the move will enable the firm "to accelerate and scale our operations to meet the surging demand for cross-border solutions."

This is the language of strategic consolidation. In a fragmented logistics market, controlling an integrated, high-throughput asset like the Longgang Center provides a significant competitive moat. It allows Jayud to offer a true end-to-end solution, a highly attractive proposition for e-commerce giants and small businesses alike who crave simplicity and reliability.

The Engine Room of E-Commerce Gets a New Driver

With operational control comes the mandate to innovate. Jayud has outlined a clear vision for the Center's future, focusing on technology and enhanced service capabilities. The company plans to spearhead technology upgrades to enable real-time tracking across the supply chain—a critical feature for e-commerce sellers and customers who demand complete visibility from warehouse shelf to final destination. This digital overhaul is essential for managing the complex, high-velocity logistics required by modern e-commerce.

Furthermore, Jayud intends to bolster the Center's bonded logistics capabilities. For investors unfamiliar with the term, this is a crucial advantage. Bonded warehouses allow goods to be stored, manipulated, or undergo manufacturing operations without payment of duty. This streamlines the customs process, reduces cash flow burdens for exporters, and dramatically speeds up the movement of goods across borders. Enhancing these capabilities at the Longgang Center could make it an even more indispensable partner for international traders.

This strategic direction has been met with approval from industry experts. According to one supply chain M&A analyst, the move is a logical and powerful step. "The majority acquisition in a high-throughput Shenzhen hub strengthens operational control and growth optionality for Jayud," the analyst noted. "Directing capital for tech upgrades and service expansion from a position of control, rather than as a minority voice, is a game-changer. It allows them to be far more agile in responding to the needs of major e-commerce players."

A Bold Move Amidst Financial Headwinds

While the strategic rationale for the acquisition is compelling, it arrives at a complex moment for Jayud Global Logistics. As a micro-cap company with a market capitalization hovering around $11 million, this is an ambitious undertaking. The company's recent financial performance has been challenging, marked by negative earnings and declining revenue growth. Its stock trades at a low Price-to-Sales ratio, suggesting the market has been skeptical of its growth story.

This context makes the acquisition of the Longgang Center a high-stakes bet. The move must be viewed against a backdrop that includes a recent class action lawsuit filed against the company, alleging misleading statements related to a stock promotion campaign earlier in the year. While Jayud has since regained compliance with Nasdaq's minimum bid price requirements, these issues paint a picture of a company navigating significant financial and reputational turbulence.

From this perspective, the acquisition can be interpreted in two ways: as a desperate gambit to reverse its fortunes or as a shrewd, long-term strategic investment to fundamentally solidify its business model. By securing control of a core, high-volume asset, Jayud is anchoring its future to a tangible, revenue-generating operation. The challenge, however, will be execution. The firm must now demonstrate it has the financial discipline and operational expertise to unlock the promised synergies and technological advancements without overextending itself.

Charting the Future of Cross-Border Logistics

Ultimately, Jayud's power play for the Longgang Center is a microcosm of the broader evolution in global logistics. The era of fragmented, single-service providers is waning, replaced by a demand for integrated, technology-driven, end-to-end solutions. The meteoric rise of platforms like Shein and Temu has been built on the back of hyper-efficient supply chains originating from hubs exactly like Longgang.

By taking the driver's seat, Jayud positions itself to be an indispensable partner in this ecosystem. The company can now work directly to optimize workflows, integrate its proprietary IT systems, and forge international partnerships that extend the Center's reach. This control allows it to move beyond being a mere service provider to becoming a strategic enabler of global e-commerce.

The path forward is not without risk. Integrating operations, funding technological upgrades, and fending off larger competitors will require flawless execution. However, in the high-stakes world of global trade, controlling a critical piece of infrastructure in the world’s most important e-commerce city is a powerful advantage. The focus for Jayud now shifts from strategic acquisition to operational excellence, and the market will be watching closely to see if this bold bet on Shenzhen's future pays off.