Jayud global logistics returns to profitability in first half 2025

SHENZHEN - Jayud Global Logistics Limited (NASDAQ:JYD), a small-cap logistics provider with a market capitalization of $17.93 million, reported a return to profitability in the first half of 2025, with net income of $0.3 million compared to a $2.7 million loss in the same period last year, according to a press release statement. InvestingPro analysis indicates the company maintains a weak financial health score of 1.06 out of 5, suggesting continued challenges despite the profit turnaround.

The Shenzhen-based cross-border logistics provider saw revenues increase 3.7% year-over-year to $39.2 million, driven by a $2.1 million increase in its international trading business. Basic and diluted earnings per share was $0.003, compared to a loss per share of $0.12 in the prior-year period. The company’s stock shows significant volatility with a beta of -3.19, often moving counter to broader market trends. For deeper insights into JYD’s financial metrics and future outlook, InvestingPro subscribers have access to over 10 additional key investment tips.

A significant factor in the company’s improved performance was a $4.2 million government subsidy received in June from the Shenzhen Transportation Bureau for charter flight routes operated during 2022-2023, which helped reduce cost of revenues by 4.5%.

In March, Jayud launched an exclusive chartered air cargo route between Fuzhou, China, and Jakarta, Indonesia, operating three weekly flights via Boeing 737-800 aircraft with 18-ton capacity. The service complies with IATA guidelines for lithium-ion battery transport.

As of June 30, Jayud reported total assets of $26.5 million, up from $25.7 million at the end of 2024. Cash and cash equivalents stood at $4.2 million, while total liabilities were $15.1 million.

The company’s international trading segment accounted for 42.9% of total revenues in the first half of 2025, reflecting increased demand in international trading and e-commerce logistics.

Operating expenses were managed effectively, contributing to the positive financial results. Capital expenditures totaled $0.2 million in the period, primarily focused on logistics equipment and IT system enhancements. The company maintains a current ratio of 1.46, though InvestingPro data shows concerning negative gross profit margins and rapid cash burn, factors that investors should monitor closely. Unlock comprehensive financial analysis and real-time alerts with an InvestingPro subscription.

In other recent news, Jayud Global Logistics announced a 1-for-50 reverse share split of its ordinary shares, which is set to take effect on October 13, 2025. The board approved this reverse split alongside an increase in authorized share capital. The company will continue trading under the same ticker symbol, with a new CUSIP number. Additionally, Jayud Global Logistics completed a registered direct offering of 42,857,143 Class A ordinary shares to accredited investors, raising $6 million in gross proceeds. This transaction was conducted under the company’s existing shelf registration statement. The company plans to use the funds for general corporate purposes, loan repayment, and the registration and operation of its overseas entities.

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