Jayud Global Logistics Announces Entry into the North American Market with the Acquisition of HYTX Warehouse Inc.

Further Expansion Addresses Expected Global E-Commerce Logistics Growth of Over 10% Per Year

SHENZHEN, China, April 30, 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 significant expansion into the North American logistics market through its wholly owned subsidiary, Joyed Logistics Services Inc. ("Joyed Logistics"). Joyed Logistics has entered into an equity purchase agreement to acquire a 51% controlling stake in HYTX Warehouse Inc. ("HYTX"), a prominent logistics company headquartered in Azusa, California, with 27 locations across the United States and Canada.

Under the terms of the agreement, the equity interests in HYTX will be transferred to Joyed Logistics upon execution, with the purchase price based on HYTX's actual annual average net profit from the acquisition closing date to December 31, 2026, with part of the payment to be made in cash and the remainder in ordinary shares of Jayud in 2027. This performance-based approach is the latest example of Jayud's commitment to investing in successful and synergistic business operations.

According to ECDB, in 2023, North America replaced APAC as the strongest region for eCommerce logistics revenues, with APAC second and Europe third. The market for eCommerce logistics is expected to grow at an average yearly growth rate of over 10% to a value of approximately US$788 billion of revenues generated by 2027.

The acquisition comes at a pivotal time as the global air cargo demand continues to see robust growth, driven by a buoyant international market and booming e-commerce, with demand growing by 11.9% year over year as of February 2024, according to the International Air Transport Association (IATA).

HYTX leadership brings over two decades of experience in logistics technologies, and boasts a comprehensive network of global suppliers, overseas warehouses, and logistics services. Jayud is currently incorporating HYTX's customers into its suite of logistics software solutions, enabling seamless integration within U.S. and Chinese customs systems, providing greater operational efficiencies. HYTX's expertise spans one-piece delivery, goods transfer, returns and label replacement, and last-mile delivery, supported by a professional team and operational process.