Jayud receives $4.2 million subsidy for cross-border flight routes

Published 24/06/2025, 22:18
Jayud receives $4.2 million subsidy for cross-border flight routes

SHENZHEN - Jayud Global Logistics Limited (NASDAQ:JYD), a logistics company with a market capitalization of $17.5 million and annual revenue of $77.5 million, has received a government subsidy of RMB 30,258,086 (approximately $4.2 million) from the Shenzhen Transportation Bureau, the company announced Tuesday.

The subsidy covers two charter flight routes operated by the company during 2022-2023 as part of its air freight services. The Shenzhen-Clark route received RMB 17.28 million, while the Shenzhen-Davao route was awarded RMB 12.98 million. The news comes as JYD’s stock trades near $0.20, having declined over 90% year-to-date.

Jayud initially applied for the cargo aircraft new route subsidies in March 2023. The Shenzhen Transportation Bureau finalized the amounts in March 2025 after adjusting all applications due to total requests exceeding available funding.

"This significant government recognition and financial support validates our strategic expansion into charter flight operations," said Xiaogang Geng, Chairman of the Board and CEO of Jayud, according to the press release.

The company expects the subsidy to impact its revenue and financial results for the current fiscal year.

Jayud Global Logistics, based in Shenzhen, provides cross-border supply chain solutions including freight forwarding and supply chain management. The company operates logistics facilities across major transportation hubs in China and globally, with presence in 12 Chinese provinces and 16 countries across six continents.

In other recent news, Jayud Global Logistics has received a notice from Nasdaq regarding non-compliance with the minimum bid price rule, as its shares have been trading below $1.00 for 30 consecutive business days. The company has until November 11, 2025, to rectify this issue to avoid the risk of being delisted. Additionally, Jayud has announced the date for its 2024 Annual General Meeting of Shareholders, which is set for April 2025. The meeting will involve holders of the company’s Class A Ordinary Shares, though specific resolutions have not yet been disclosed.

Furthermore, Jayud has advised investors to rely solely on formal statements and filings with the U.S. Securities and Exchange Commission following unusual market activity involving the company’s stock. In another development, Jayud has launched its first chartered air cargo service between Fuzhou, China, and Jakarta, Indonesia, which will operate three times a week. This service is designed to transport products with lithium-ion batteries, meeting specific IATA guidelines, and aims to support the rapid growth of the e-commerce industry in Southeast Asia. Jayud’s CEO highlighted the significance of this expansion, noting its role in enhancing service offerings and strengthening commercial ties in the region.

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