Shengfeng revenue up 16% YoY, driven by transportation services growth.

• Shengfeng Development's revenue up 16.0% YoY to $263.4 million • Increase driven by transportation services • Gross profit up 14.2% to $24.1 million • Overall gross margin at around 9.1% • Company provides integrated logistics solutions in China

Title: Shengfeng Development Reports Strong Financial Performance for Q1 2025

Shengfeng Development Limited (SFWL) has reported its first-quarter financial results for 2025, showcasing a notable increase in revenue and gross profit. The company's integrated logistics solutions in China have driven this growth, with a focus on transportation services.

# Revenue Growth
Shengfeng Development's revenue for the first quarter of 2025 increased by 16.0% year-over-year (YoY) to $263.4 million [NUMBER: 1]. This growth was primarily driven by a significant increase in transportation services, which contributed to the overall revenue expansion. The company's diverse portfolio, including cloud storage solutions and value-added logistics services, also played a role in this performance.

# Gross Profit Improvement
The company's gross profit for the first quarter of 2025 improved by 14.2% to $24.1 million. This increase was a result of enhanced operational efficiencies and strategic cost management. The overall gross margin remained at around 9.1%, indicating a healthy profit margin despite the increased operational expenses.

# Strategic Partnerships and Initiatives
Shengfeng Development's strategic partnerships and initiatives have been key drivers of its growth. In March 2025, the company announced a multi-year strategic partnership with CATL, valued at approximately 300 million RMB ($42 million USD), to manage CATL's nationwide transportation and distribution of battery components and finished products [NUMBER: 2]. This partnership leverages Shengfeng's Ningde Smart Logistics Center, operational since late 2024, to enhance supply chain efficiency and advance clean energy logistics solutions.

Additionally, Shengfeng Development expanded into the low-altitude logistics sector in November 2024, forming a joint venture with Fujian Fulai Aviation Technology to provide drone-based delivery services [NUMBER: 3]. This initiative targets China's low-altitude economy, projected to exceed 1 trillion yuan by 2026, and aims to improve connectivity and response times in critical industries such as healthcare, e-commerce, and agriculture.

# CEO Confidence and Market Position
CEO Yongxu Liu expressed confidence in the company's market position and future prospects, particularly highlighting opportunities in the new energy sector. In October 2024, Liu purchased 500,000 Class A ordinary shares in the open market, demonstrating his belief in the company's growth potential [NUMBER: 4]. This strategic purchase was made at an average price of $1.289 per share, indicating a strong conviction in the company's long-term success.

# Conclusion
Shengfeng Development Limited's first-quarter financial results for 2025 reflect a robust performance driven by strategic partnerships, operational efficiencies, and a focus on high-growth sectors. The company's integrated logistics solutions continue to position it as a leader in China's logistics sector, with a strong foundation for future growth.

# References
- [1] https://www.stocktitan.net/news/SFWL/
- [2] https://www.stocktitan.net/news/SFWL/
- [3] https://www.stocktitan.net/news/SFWL/
- [4] https://www.stocktitan.net/news/SFWL/