Shengfeng Development Limited's H1 2025 Financial Results: Revenue Up 16.0%, Net Income Rises 19.3%

Shengfeng Development Limited reported a 16% YoY increase in revenue to $263.4 million for H1 2025, driven by a significant increase in revenue from transportation services. Gross profit increased by 14.2% to $24.1 million, while net income rose by 19.3% to $6.0 million. Operating expenses increased by 12% to $16.3 million, primarily due to higher employee salaries and benefits. As of June 30, 2025, cash and cash equivalents were $14.3 million, compared to $34.7 million as of December 31, 2024.

Shengfeng Development Limited (SFWL), a leading contract logistics company in China, reported its unaudited financial results for the first half of 2025, showing a robust performance driven by significant growth in transportation services. The company's total revenue increased by 16.0% year-over-year (YoY) to approximately $263.4 million, compared to $227.1 million in the same period last year [1]. This growth was primarily attributed to a substantial increase in revenue from transportation services, which saw a 17.1% YoY rise to $254.7 million.

Gross profit also experienced a notable increase, rising by 14.2% to $24.1 million, from $21.1 million in the same period last year. This growth was accompanied by a slight decrease in the overall gross margin, from 9.3% to 9.1%, due to more competitive pricing strategies in response to intense market competition.

The company's net income improved by 19.3% to $6.0 million, from $5.0 million in the same period last year. This improvement was driven by the overall growth in revenue and gross profit, despite a 12.0% increase in operating expenses to $16.3 million, primarily due to higher employee salaries and benefits. General and administrative expenses also increased by 15.0% to $13.4 million, primarily to support the company's expanded operations and higher revenue base.

As of June 30, 2025, Shengfeng Development Limited's cash and cash equivalents stood at approximately $14.3 million, compared to $34.7 million as of December 31, 2024. The decrease was primarily due to investments in business expansion and increased working capital requirements to support the growth in revenue.

The company's CEO, Yongxu Liu, commented on the strong performance, stating that it reflects deepened collaborations with key clients across priority sectors. The company continues to focus on high-growth verticals where its integrated logistics solutions deliver distinct competitive advantages, particularly in the new energy vehicle sector, where partnerships with industry leaders like CATL Battery, Tesla, and Xiaomi have been expanded to support their nationwide distribution network upgrades [1].

Looking ahead, Shengfeng Development Limited aims to sustain its growth and improve margins in the second half of 2025. The company is committed to leveraging its extensive logistics network and innovative solutions to serve a broader range of industries and customers.

References:
[1] https://www.prnewswire.com/news-releases/shengfeng-development-limited-announces-unaudited-2025-first-half-financial-results-302540093.html