📄 What This Document Is

This document is Jayud Global Logistics Ltd.'s Annual Report (Form 20-F), which is a major filing required by the U.S. Securities and Exchange Commission (SEC). 🧐 While annual reports typically give investors a comprehensive look at a company's past performance and future plans, this specific filing is dominated by detailed risk factors.

👉 What to expect: Rather than providing a clean summary of recent achievements, the company dedicates extensive portions of this report to warning investors about nearly every possible risk they might face—from geopolitical conflicts to basic operational hiccups.

🌎 What The Company Does

Jayud Global Logistics Ltd. is a major end-to-end supply chain solution provider, specializing in logistics services, particularly international and e-commerce logistics. 📦 In simple terms, they are the supply chain backbone for merchants and e-commerce platforms, moving goods from point A to point B globally.

• Business Model: They offer a wide range of services, including international freight forwarding, warehousing, and customs brokerage. They manage the entire journey of a product, from sourcing it to delivering it to the final consumer.
• Scale: The company operates through a vast network, including self-operated facilities in China (Shenzhen and Nantong) and facilities in the U.S. (California, Texas).
• How they earn money: They profit by providing comprehensive, turn-key solutions that integrate multiple services—like getting the cargo from the ship (freight forwarding), storing it (warehousing), and clearing customs (brokerage).

🧑‍💼 Who's Running the Show

The filing provides key contact and operational information that helps understand the company's structure and who is responsible for its operations. 📞

• Chief Executive Officer: Xiaogang Geng.
• Primary Office: Building 3, No. 7 Gangqiao Road, Li Lang Community Nanwan Street, Longgang District Shenzhen, China.
• Key Contacts: The company’s general contact person is listed with the name, telephone, and email ([email protected]).
• Shares Outstanding: As of December 31, 2025, the company had a total of 3,165,708 Class A ordinary shares and 108,192 Class B ordinary shares, each par value US$0.005 per share.

📈 Financial Overview & Historical Results

While the document is focused on risks, it does provide a brief look at the company's revenue trajectory over the last few years. 💰

• Revenue Trend: Jayud reported revenues of RMB497.9 million in 2023, increasing to RMB565.3 million in 2024, and reaching RMB600.8 million in 2025.
• Profitability Shifts: The company reported a gross loss of RMB15.9 million in 2023 and RMB11.2 million in 2024. However, they saw a positive gross profit of RMB20.1 million in 2025.
• Why it matters: Despite the growth in revenue, the company's profit and loss figures are volatile, and the filing explicitly warns that these historical results are not indicative of future performance, highlighting the industry's unpredictable nature.

📍 Logistics Footprint and Assets

The report details the physical assets and infrastructure the company relies on, which form the core of its operations. 🏭

• China Operations (Self-Operated): They own two self-operated warehouses in China: one in Shenzhen (Guangdong province) with an aggregate Gross Floor Area (GFA) of approximately 20,636 sq. m, and a second in Nantong (Jiangsu province) with an aggregate GFA of approximately 3,200 sq. m.
• China Operations (Rights-to-Use): They also have rights to use several key third-party facilities, including a warehouse in Yiwu (Zhejiang province) (3,904 sq. m), a customs terminal service site in Shenzhen (12,810 sq. m), and a drone training facility (576 sq. m).
• Global Presence (U.S. Assets): The company has a significant presence in the U.S.:
  • They own 95% of the interest in a warehouse and related land in Houston, Texas (acquired in October 2024).
  • In California, they hold an existing self-operated warehouse (49,000 sq. ft.) and acquired partial interests in two other warehouses (20% in HYTX Warehouse No.3 LLC, operating 69,000 sq. ft.; and 49% in HYTX Warehouse No.10 LLC, operating 43,000 sq. ft.).
  • Looking ahead, they signed a three-year lease for a 120,000 sq. ft. warehouse in California starting in February 2026.

⚠️ Geopolitical and Tariff Risks

This section details the most significant external threats to the business, revolving around international trade conflicts. ⚔️

• US-China Tariffs: The business is highly sensitive to changes in trade policies, especially those imposed by the U.S. government on goods from China. The filing warns of dramatic increases in tariffs, citing examples like the April 2, 2025, “Liberation Day” tariff of 10% on imports from countries with significant trade surpluses, and subsequent tariffs reaching 125% by mid-April 2025.
• Impact of Tariffs: These tariffs could raise the cost of cross-border logistics, forcing the company to choose between absorbing the costs (squeezing profit margins) or passing them to customers (making services less competitive).
• Global Conflicts: The company highlights risks from conflicts like Russia-Ukraine and Israel-Hamas. Geopolitical instability can disrupt global supply chains, cause massive energy price volatility, and significantly increase the operational costs for freight forwarding.

💼 Competitive Market Pressures

The logistics industry is described as highly competitive and fragmented, presenting significant challenges for the company to maintain market share. 🥊

• Competitors: Jayud faces competition from a wide range of players, including integrated supply chain solution providers, specialized express delivery services, and new market entrants.
• Consolidation Risk: The industry trend toward consolidation means that larger competitors can build more powerful resources (financial, technological, human capital) that could outmaneuver smaller players.
• E-commerce Platforms: A specific risk is that large retailers or e-commerce platforms might develop their own internal logistics networks. If they do this, they could compete directly with Jayud for services and staff.
• Customer Concentration: The company reports that revenue from its five largest customers accounted for approximately 42.3% of total revenues in 2023, dropping to 32.6% in 2024, and 31.7% in 2025. This high concentration means losing just one or two major clients could severely hurt the company’s overall revenue.

🌊 Operational and Supply Chain Risks

The day-to-day functioning of the global supply chain exposes the company to many volatile variables. 🚢

• Third-Party Reliance: Jayud heavily relies on independent third parties for services like freight transportation and last-mile delivery. Failure to maintain positive relationships with these partners, or if they experience financial hardship, could be devastating.
• Equipment Shortages: The business is vulnerable to equipment shortages (e.g., contracted truckload carriers or railroads) and interruptions caused by labor disputes, weather, or acts of terrorism.
• Service Reliability: The quality and profitability of services depend on the effective selection and oversight of service providers. Furthermore, the company cannot guarantee access to sufficient cargo space from its suppliers during peak times.
• Credit Risk: The business is exposed to credit risk from customers. If macroeconomic turmoil leads to defaults or payment delays, it could severely affect the company's cash flow.

💻 Technology and Regulatory Compliance

Operating in a modern global market requires sophisticated technology, but this also introduces major risks. 💻

• Cybersecurity Threats: The reliability of their technology platform is critical. Any disruption, whether from a power outage, a virus, or a sophisticated hacker attack (like a Denial of Service attack), could cause severe service outages and damage their reputation.
• PRC Regulation (China): Jayud faces complex and rapidly changing regulatory environments in the PRC. They must comply with specialized filings (e.g., MOC filings for international freight forwarders) and the failure to maintain these licenses can lead to massive fines and even a complete ban on operations.
• Foreign Listings Risk: The filing warns of regulatory uncertainty regarding overseas listings. Any new rule requiring approval from the China Securities Regulatory Commission (CSRC) could materially limit the company's ability to raise capital globally.

💵 Capital Requirements and Financial Liquidity

The company’s ability to fund its aggressive growth is a continuous source of risk. 💸

• Capital Needs: Jayud warns that its strategies and expansion plans (like building new warehouses) require significant amounts of capital. These capital needs may be different from what they currently anticipate.
• Financing Limitations: If the company cannot obtain sufficient debt or equity financing on acceptable terms, its ability to execute its growth plans will be severely restricted, potentially forcing it to cut back or discontinue operations.
• Accounting Standard: The financial statements are prepared using U.S. GAAP (Generally Accepted Accounting Principles), confirming their commitment to a globally recognized standard for reporting.

📅 Key Dates & Contact Information

The filing does not provide specific upcoming conference call dates, but it provides important details regarding the legal nature of the documents. 📞

• Financial Period: The report covers the fiscal year ended December 31, 2025.
• Accounting Standard: The financials are prepared using U.S. GAAP.

---

🧠 The Analogy

Operating Jayud Global Logistics is like running a massive, global cross-country delivery service during a hurricane season. ⛈️ You aren't just worried about rain (normal market cycles); you're worrying about hurricanes (trade wars and pandemics). The storm might be caused by conflicting governments (tariffs), the local roads might be shut down by protests (political instability), and the delivery workers (suppliers) might suddenly walk off the job due to cost (labor shortage). You have to manage every single unpredictable variable—from the price of fuel to whether the main bridge remains open—just to get the package from the start to the end.

🧩 Final Takeaway

Jayud is a logistics giant serving the booming e-commerce market, but its growth is intrinsically linked to extreme global volatility. Investors must recognize that the company's primary story is not its revenue growth, but its incredible exposure to geopolitical conflict, tariffs, and the failure points within the global supply chain.