Executive Summary / Key Takeaways

• Jayud Global Logistics Limited (JYD) is a Shenzhen-based cross-border logistics provider leveraging proprietary intelligent IT systems to offer integrated freight forwarding and supply chain management services, particularly in Asian markets.
• The company has faced significant financial headwinds, transitioning from positive net income in 2021-2022 to substantial losses of -$72.58 million in 2023 and -$49.57 million in 2024, alongside negative operating and free cash flow.
• To address a Nasdaq minimum bid price deficiency, JYD's board approved a 50-to-1 share combination in September 2025, a critical strategic move to maintain its public listing and investor confidence.
• JYD's competitive positioning relies on its agility and technology-driven efficiency in niche cross-border segments, contrasting with the scale and global reach of larger rivals like UPS and FedEx Corporation , which generally exhibit superior profitability and cash flow.
• The investment thesis hinges on JYD's ability to stabilize its financial performance and effectively leverage its technological differentiators and regional expertise to capture growth in expanding cross-border trade, particularly as global supply chains evolve.

Setting the Stage: A Niche Player in Global Logistics

Jayud Global Logistics Limited, founded in 2009 and headquartered in Shenzhen, China, has carved out a specialized role as an end-to-end supply chain solution provider focused on cross-border logistics. The company's service portfolio is comprehensive, encompassing integrated cross-border logistics, fragmented logistics services, and chartered airline freight. Beyond core freight forwarding, Jayud extends its offerings to supply chain management, including international trading and agent services, complemented by value-added services such as customs brokerage and intelligent logistic IT systems. This strategic focus positions JYD as a key facilitator of trade, particularly within and from Asia.

The global logistics industry is a vast and complex ecosystem, characterized by intense competition and evolving demands. Broad industry trends, such as the increasing demand for data centers driven by AI advancements, indirectly fuel the need for robust and efficient supply chain services to support infrastructure development. This dynamic creates opportunities for agile players like JYD, especially those with technological capabilities that can streamline complex international movements.

The Technological Edge: Intelligent Logistics IT Systems

At the core of Jayud's competitive strategy lies its investment in proprietary intelligent logistic IT systems. While specific quantitative performance metrics for these systems are not publicly detailed, their strategic intent is clear: to enhance efficiency, provide superior tracking capabilities, and facilitate seamless integration across the complex cross-border supply chain. These systems are designed to offer tangible benefits, potentially leading to faster response times for cross-border shipments, improved customs processing, and ultimately, lower operational costs.

This technological differentiation is crucial for JYD, allowing it to carve out a competitive moat against larger, more established global logistics giants. By leveraging its IT systems, JYD aims to counter the scale advantages of competitors with agility and specialized efficiency, particularly in the nuanced and often fragmented Asian markets. The strategic goal is to foster stronger customer loyalty and recurring revenue through enhanced service delivery and operational effectiveness.

Navigating a Competitive Landscape

Jayud operates within a highly competitive global logistics market, contending with formidable players such as UPS , FedEx Corporation , DHL Group , and Expeditors International of Washington . These industry titans boast extensive global networks, significant brand recognition, and substantial financial resources.

UPS , for instance, is a global logistics giant known for its vast network and integrated solutions, demonstrating consistent revenue expansion and improved profitability. FedEx Corporation , a leader in express transportation, focuses on digital transformation and e-commerce, showing steady revenue growth and enhanced profitability, particularly from international operations. DHL Group (DHLGY), with its comprehensive international presence, also reports consistent revenue growth and improved profitability. Expeditors International of Washington (EXPD), specializing in global freight forwarding with an asset-light model, maintains solid profitability.

In direct comparison, JYD's specialized, technology-focused approach and regional expertise, particularly in Asia, offer a qualitative edge in cost-effective solutions for cross-border trade. JYD's intelligent logistics IT systems could provide greater efficiency in tracking and customs processing compared to the more standardized systems of its larger rivals, potentially offering a unique value proposition in faster response times for cross-border shipments. However, JYD's smaller scale presents a significant competitive disadvantage, leading to higher costs and lower margins compared to the operational efficiencies enjoyed by its larger counterparts.

Financially, the disparity is evident. While JYD reported revenue of $565.27 million in 2024, its TTM Gross Profit Margin stands at -1.00%, Operating Profit Margin at -6.31%, and Net Profit Margin at -6.63%. In contrast, major competitors generally exhibit robust positive margins and strong cash flow generation. For example, UPS (UPS) and FedEx Corporation (FDX) have P/E ratios of 12.37 and 13.61, respectively, indicating profitable operations, whereas JYD currently has a negative P/E ratio due to its losses. JYD's current Price to Sales Ratio of 0.03 also reflects a significantly lower valuation multiple compared to its peers, underscoring the market's current assessment of its financial health and growth prospects.

Financial Performance and Strategic Responses

Jayud's financial trajectory has seen a notable shift in recent years. The company reported positive net income of $10.31 million in 2021 and $3.89 million in 2022. However, this trend reversed sharply, with a net income of -$72.58 million in 2023 and a further loss of -$49.57 million in 2024. This downturn is also reflected in its cash flow, with operating cash flow at -$97.45 million and free cash flow at -$98.17 million in 2024. The company's gross profit also turned negative, reaching -$11.17 million in 2024.

The balance sheet shows a total asset base of $184.37 million in 2024, with current assets of $140.37 million and cash and cash equivalents of $37.00 million. Total liabilities stood at $105.00 million in 2024, with total debt at $24.10 million. The current ratio of 1.46 indicates a reasonable ability to cover short-term obligations, but the negative retained earnings of -$126.96 million highlight accumulated losses.

In response to its declining share price, Jayud received a notification from Nasdaq on May 15, 2025, regarding non-compliance with the minimum bid price requirement of $1.00 per share. To address this critical listing deficiency and regain compliance by the November 11, 2025 deadline, the company's board of directors approved a 50-to-1 share combination on September 9, 2025. This strategic move aims to increase the per-share trading price and maintain its Nasdaq listing, which is vital for investor confidence and access to capital markets. The share combination will also adjust the par value of its shares and is expected to become effective once Nasdaq confirms the date and a new CUSIP number is assigned.

Outlook and Key Risks

The immediate outlook for Jayud Global Logistics is heavily influenced by the success of its share combination in regaining Nasdaq compliance. Failure to meet the minimum bid price requirement could lead to delisting, significantly impacting the company's ability to raise capital and its overall market visibility.

While specific quantitative guidance figures from management are not available, the share combination signals a clear intent to stabilize the company's market position and address a critical operational challenge. The company's future growth will depend on its ability to leverage its intelligent IT systems and regional expertise to improve profitability and generate positive cash flow. The expanding cross-border trade, particularly in Asia, and the broader industry trend of increased logistics demand driven by sectors like AI and data centers, present potential tailwinds for JYD.

However, significant risks remain. Beyond the immediate delisting threat, JYD faces intense competition from larger, more financially robust players. Its smaller scale could limit its ability to compete on price or invest as heavily in infrastructure as its rivals. Furthermore, potential dependencies on regional suppliers and exposure to geopolitical risks in its primary operating regions could disrupt operations and impact financial performance. Investors should closely monitor the effectiveness of the share combination and the company's progress in translating its technological advantages into sustainable profitability.

Conclusion

Jayud Global Logistics Limited stands at a pivotal juncture, seeking to re-establish its footing in the dynamic cross-border logistics market. The company's foundational strength lies in its specialized focus on Asian markets and its proprietary intelligent logistic IT systems, which offer a distinct advantage in efficiency and tailored solutions. However, recent financial performance, marked by significant losses and negative cash flow, underscores the challenges it faces.

The approved 50-to-1 share combination is a critical strategic maneuver aimed at preserving its Nasdaq listing, a necessary step to stabilize investor confidence and secure future capital. While JYD's agility and technological differentiation offer a pathway to capturing growth in niche segments, its ability to translate these advantages into sustained profitability and compete effectively against larger, more financially robust global players will be paramount. The investment narrative for JYD is one of a specialized player striving for revaluation, where overcoming immediate listing challenges and demonstrating a clear path to financial recovery through its technological leadership will be key determinants of its long-term success.