Smart Logistics Posts Strong Growth, But Investors Remain Wary Post-IPO

HONG KONG – December 19, 2025 – In its first financial report since a volatile Nasdaq debut, Smart Logistics Global Limited (Nasdaq: SLGB) today unveiled a robust performance for the first half of 2025, showcasing significant double-digit revenue growth and a dramatic surge in profitability. The results paint a picture of a company capitalizing on China’s economic momentum and its own technological investments. However, this operational success stands in stark contrast to its stock market performance, which has seen investor sentiment cool considerably since its October initial public offering.

The Hong Kong-based B2B contract logistics provider reported that its revenues for the six months ending June 30, 2025, climbed 11.4% to RMB332.8 million (US$46.5 million) compared to the same period in 2024. More impressively, its bottom line showed exponential growth. Net income skyrocketed to RMB5.8 million (US$0.8 million) from just RMB1.3 million a year prior, while income from operations jumped to RMB8.8 million (US$1.2 million) from a mere RMB0.7 million. These figures, while celebrated by the company, have yet to reverse a punishing slide in its share price, creating a puzzle for market observers.

A Tale of Two Markets

Smart Logistics Global's H1 2025 financial report tells a story of fundamental strength. The company attributed the revenue increase primarily to heightened demand from customers, fueled by broader economic growth within the People's Republic of China. This growth wasn't just on the top line; operational efficiency also saw a marked improvement. The company's gross profit margin expanded significantly to approximately 5.3%, a notable increase from 3.1% in the first half of 2024. Management credited this to a combination of targeted pricing strategies in a favorable market and better cost controls.

“This is a very exciting time for us, given this is our first financial report since becoming a publicly traded company,” stated Hue Kwok Chiu, Chief Executive Officer and Chairman of the Company, in the press release. “I want to thank our dedicated employees and partners for their efforts which contributed to our top and bottom line growth and increasing our profit margins.”

Despite these strong fundamentals, the public market has delivered a harsh verdict. After pricing its IPO at $5.00 per share and raising $5.0 million in gross proceeds on October 16, 2025, SLGB's stock has been on a steep downward trajectory. Shares, which briefly touched $6.08, have since plummeted, trading around $1.30 in recent sessions—a decline of over 70% from its offering price. This performance is compounded by a lack of analyst coverage, leaving investors with little third-party research to contextualize the company's high P/E ratio, which stands at over 180, suggesting that the current price still factors in ambitious future growth.

The Engine Room: Tech and Infrastructure

The key to Smart Logistics Global's improved margins and ability to handle increased demand appears to lie in its strategic investments in technology and physical infrastructure. Operating in the competitive Chinese B2B logistics sector since 2018, the company has carved out a niche in land-only transportation of industrial raw materials for large clients on long-term contracts.

At the core of its operations is a proprietary Transportation Management System (TMS). This software platform is crucial for optimizing routes, managing equipment, and coordinating its vast and growing network of truckers, which expanded from 130,000 in December 2024 to over 140,000. This digital backbone allows the company to enhance efficiency and provide tailored, cost-effective solutions, directly contributing to its widening profit margins. The firm has also developed the "Jiabin Heavy Truck APP" as part of its digital platform strategy.

This technology is complemented by a substantial physical footprint. The company operates a 110,000-square-meter smart logistics park in Jiangxi Province, which was designated a key provincial logistics center in 2021. It also runs seven full-truck load (FTL) centers strategically located in key industrial areas like Suzhou, Dongguan, and Jinan. Looking ahead, Smart Logistics Global has ambitious plans to establish five major logistic hubs across China’s key economic regions, each anchored by a 5G-enabled smart logistics park. A significant portion of its IPO proceeds—50% for infrastructure and 20% for R&D—has been earmarked for this expansion, signaling a deep commitment to its tech-driven growth model.

Riding China's Economic Wave

Smart Logistics Global's performance is inextricably linked to the health of the Chinese economy, which showed surprising resilience in the first half of 2025. China’s GDP grew 5.3% year-on-year, propelled by a 6.4% increase in the value-added output of its industrial enterprises. Strong export figures, which rose 7.2% in yuan terms, further stimulated the movement of goods and raw materials through the nation's supply chains.

This macroeconomic environment created the strong demand that the company cited as the primary driver for its revenue growth. As manufacturing and export activities boomed, the need for reliable, efficient transportation of industrial inputs surged, playing directly to Smart Logistics Global's specialized services. The company's focus on building what it calls a "road-transport smart logistics digital ecosystem" appears well-timed to capture the benefits of this industrial activity.

However, the Chinese economy is not without its challenges. Persistent weakness in the real estate sector, lagging domestic consumption, and deflationary pressures in producer prices present potential headwinds. While industrial output has been strong, any slowdown could dampen demand for raw materials transportation, posing a risk to the company's growth trajectory. For now, the company is successfully navigating these currents, but its fortunes remain tied to the broader economic landscape of the PRC.