Note: From the prospectus – Shengfeng Development Limited is a holding company incorporated in the Cayman Islands exempted company. This is an IPO of the Class A ordinary shares of the offshore holding company in the Cayman Islands. Its operations are conducted through its subsidiary in China, the VIE, and the VIE’s subsidiaries. You are not investing in Shengfeng Logistics, the VIE, or the VIE’s subsidiaries.

The VIE is one of the leading contract logistics service providers in China. Since the establishment of the VIE in 2001, our mission has been to provide logistics solutions to companies in need of storage and delivery assistance in China. Through our experienced management team, we apply our 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. We aim to provide our clients with superior and customized services. Our business slogan is “When you entrust us with your goods, we cherish them as our own.”

Contract logistics is a comprehensive process that merges traditional logistics with supply chain management. Contract logistics companies outsource resource management tasks to third-party companies and handle activities such as planning and designing supply chains, designing facilities, processing orders, collecting payments, managing inventories, and providing client services. 

The contract logistics industry in China has been expanding in recent years. According to Frost & Sullivan, since 2019, the market size of the contract logistics industry has reached RMB1,154.9 billion and is expected to reach RMB1,709.9 billion by 2024. We are a China-based, business-to-business, or “B2B,” independent contract logistics company with consolidated revenue of approximately $346.7 million and $287.5 million for the fiscal years ended Dec. 31, 2021, and 2020, respectively. Based on the report provided by Frost & Sullivan, in 2020 and 2019, the VIE ranked top 50 among all B2B independent contract logistics companies in China.

Our integrated logistics solution services are comprised of three segments: (1) B2B freight transportation; (2) cloud storage; and (3) value-added services. Since 2001, we, through the VIE and the VIE’s subsidiaries, have developed extensive and reliable transportation networks in China, covering 341 cities in over 31 provinces as of Dec. 31, 2021. In addition, we, through the VIE and the VIE’s subsidiaries, have provided services to over 4,000 manufacturers and trading companies in China, including companies such as CATL Battery, Bright Dairy, SF Express, Schneider Electric and Xiaomi.

**Note: Revenue and net income figures are for the 12 months that ended June 30, 2022.

(Note: Shengfeng Development Ltd. downsized its micro-cap IPO at pricing on March 30, 2023, to 2.4 million shares – down from 3.0 million in the prospectus – and priced the IPO at $4.00 – the low end of its $4.00-to-$5.00 range – to raise $9.6 million. Shengfeng Development Ltd. cut the size of its IPO to 3.0 million shares – down from 5.0 million shares – at a price range of $4.00 to $5.00 – to raise $13.5 million, according to an F-1/A filing dated Feb. 17, 2023. The new terms represent a 46 percent reduction in the IPO’s size. Shengfeng Development Ltd. also updated its financial statements through June 30, 2022, in its F-1/A filing on Feb. 17, 2023.  

(Background on previous filings: Shengfeng Development Ltd. cut the size of its IPO to 5.0 million shares – down from 8.0 million shares initially – and set the assumed IPO price at $5.00 – the top of its previous $4.00-to-$5.00 range – to raise $25.0 million (down from $36.0 million initially) in an F-1/A filing dated Jan. 25, 2023. Shengfeng Development also disclosed its proposed symbol – SFWL – for its NASDAQ listing in its F-1/A filing on Jan. 25, 2023. Shengfeng Development Ltd. filed its F-1 on Sept. 9, 2022, taking the unusual step of setting terms for its IPO at the same time – 8.0 million Class A ordinary shares at $4.00 to $5.00 to raise $36.0 million. This is a NASDAQ listing.)