Jayud Global Logistics Partners with Leading Southeast Asian E-commerce Provider Lazbao Group

Rhea-AI Summary

Jayud Global Logistics (NASDAQ: JYD) has announced a Strategic Cooperation Agreement with Lazbao Group, a leading e-commerce logistics provider in Southeast Asia. The partnership aims to establish chartered air services from Jayud across Lazbao's service areas in Southeast Asia, which was the fastest-growing e-commerce market (20.6%) globally in 2022.

Lazbao will utilize Jayud's Longgang e-Commerce Operation Center, which handles products under customs supervision codes suitable for small cross-border packets used by major e-commerce platforms. This collaboration is expected to expand Jayud's air service network in Southeast Asia and reduce operating costs due to more stable order flow from Lazbao's platform.

Positive

• Strategic partnership with Lazbao Group to expand into Southeast Asian e-commerce market
• Potential for reduced operating costs due to more stable order flow
• Expansion of air service network in Southeast Asia
• Utilization of Jayud's Longgang e-Commerce Operation Center for cross-border e-commerce logistics

Negative

• None.

Insights

Financial Analyst

The strategic cooperation between Jayud Global Logistics Limited and Lazbao Group is a significant development, particularly for investors interested in emerging markets and logistics sectors. The e-commerce market in Southeast Asia is rapidly expanding and this agreement positions Jayud to capitalize on this growth. By establishing chartered air services, Jayud can streamline its logistics operations, potentially increasing efficiency and reducing costs.

From a financial perspective, this partnership could result in improved revenue streams for Jayud, driven by the stable order flow from Lazbao’s e-commerce platform. Additionally, by expanding its network and leveraging Lazbao's market presence, Jayud could see increased market penetration and customer base expansion, which are critical for long-term revenue growth.

Market Research Analyst

Analyzing the market implications, the partnership between Jayud and Lazbao is highly strategic. Southeast Asia is one of the fastest-growing e-commerce markets globally and this move allows Jayud to tap into significant growth opportunities. The collaboration with Lazbao, a well-established player in the region, provides Jayud with immediate market access and credibility.

Market trends indicate that e-commerce will continue to grow robustly in this region, partly due to increasing internet penetration and mobile phone usage. By integrating their operations, Jayud and Lazbao can offer enhanced service quality and reliability, which is paramount in the competitive e-commerce logistics sector. This partnership is likely to be a win-win, offering competitive advantages and driving growth for both companies.

Logistics Expert

From a logistics standpoint, the agreement between Jayud and Lazbao is a game-changer. The establishment of chartered air services will likely enhance the efficiency and reliability of cross-border logistics, which is a critical component of e-commerce. The use of the Longgang e-Commerce Operation Center, which handles products under specific customs supervision codes, further optimizes the process for small cross-border shipments.

This operational efficiency is important for e-commerce platforms that rely on timely and cost-effective delivery solutions. By reducing operating costs and improving order flow stability, Jayud stands to benefit significantly in terms of logistics performance and customer satisfaction. This partnership could set a new standard for e-commerce logistics in Southeast Asia.

Agreement to Expand into the Fastest Growing E-commerce Market in the World

SHENZHEN, China, July 23, 2024 (GLOBE NEWSWIRE) -- 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 a Strategic Cooperation Agreement (the “Agreement”) with Lazbao Group (“Lazbao”), a leading full-service e-commerce logistics service provider in Southeast Asia.

The Agreement aims to establish future chartered air services from Jayud across Lazbao's existing service areas in Southeast Asia. According to eMarketer, a market research company that provides insights and trends related to digital marketing, media, and commerce, the Southeast Asian market was the fastest-growing e-commerce market (20.6%) in the world in 2022.

Lazbao Group provides e-commerce services for Southeast Asian online shopping businesses in Thailand, Vietnam, Indonesia, the Philippines, and Malaysia. Headquartered in Hangzhou, the e-commerce capital of China, Lazbao will leverage the Longgang e-Commerce Operation Center (the “Center”), which Jayud is an investor and the operator at Jayud’s new headquarters in the Longgang District. Importantly, the Center handles products under customs supervision code “9610,” “9710”“9810”which are suitable for small cross-border packets utilized by major e-commerce platforms such as Temu, Shein, and TikTok.

The Agreement will expand Jayud’s air service network in Southeast Asia and is expected to drive down operating costs due to more stable order flow from Lazbao’s e-commerce platform. Combining Jayud’s logistics expertise and capabilities at the Center with Lazbao’s vast market presence will promote a more efficient and cost-effective logistics solution for the rapidly growing Southeast Asian e-commerce market.

"We are thrilled to announce this important partnership with Lazbao," said Xiaogang Geng, Chairman of the Board and CEO of Jayud. "This collaboration marks a significant milestone in our strategic expansion into Southeast Asia, one of the world's most dynamic e-commerce regions. By leveraging Lazbao's extensive market reach and our cutting-edge logistics capabilities, we are poised to deliver unmatched value and efficiency to our customers.”

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

FAQ

What is the purpose of Jayud Global Logistics' partnership with Lazbao Group?

The partnership aims to establish chartered air services from Jayud across Lazbao's existing service areas in Southeast Asia, expanding Jayud's air service network and potentially reducing operating costs.

How fast is the Southeast Asian e-commerce market growing according to the press release?

According to eMarketer, the Southeast Asian market was the fastest-growing e-commerce market globally in 2022, with a growth rate of 20.6%.

What is the significance of the Longgang e-Commerce Operation Center for Jayud (JYD)?

The Longgang e-Commerce Operation Center, operated by Jayud, handles products under customs supervision codes suitable for small cross-border packets used by major e-commerce platforms, enabling efficient cross-border e-commerce logistics.

Which countries does Lazbao Group provide e-commerce services in Southeast Asia?

Lazbao Group provides e-commerce services for online shopping businesses in Thailand, Vietnam, Indonesia, the Philippines, and Malaysia.