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Organization and Nature of Operations
 6 Months Ended
Jun. 30, 2023
Organization and Nature of Operations [Abstract]  
ORGANIZATION AND NATURE OF OPERATIONS
1. ORGANIZATION AND NATURE OF OPERATIONS

 

Shengfeng Development Limited (“Shengfeng” or the “Company”), is a holding company incorporated under the laws of the Cayman Islands on July 16, 2020, as an exempted company with limited liability. The Company has no substantive operations other than holding all of the outstanding share capital of Shengfeng Holding Limited (“Shengfeng HK”) established under the laws of Hong Kong on August 18, 2020.

 

Shengfeng HK is also a holding company holding all of the outstanding equity of Fujian Tianyu Shengfeng Logistics Co., Ltd. (“Tianyu” or “Shengfeng WFOE” or “WFOE”), which was established on December 16, 2020 under the laws of the People’s Republic of China (“PRC” or “China”).

 

The Company, through its variable interest entity (“VIE”), Shengfeng Logistics Group Co., Ltd. (“Shengfeng VIE” or “VIE”), and its subsidiaries, operates as a transportation and warehouse storage management services provider in the PRC. Shengfeng VIE was incorporated on December 7, 2001 under the laws of the PRC. Paid-in capital of Shengfeng VIE was approximately $27.17 million (approximately RMB189.6 million) as of June 30, 2023.

 

On December 18, 2020, the Company completed a reorganization of entities under common control of its then existing shareholders, who collectively owned all of the equity interests of the Company prior to the reorganization. The Company, and Shengfeng HK were established as the holding companies of Shengfeng WFOE. Shengfeng WFOE is the primary beneficiary of Shengfeng VIE and its subsidiaries, and all of these entities included in the Company are under common control, which results in the consolidation of Shengfeng VIE and its subsidiaries which have been accounted for as a reorganization of entities under common control at carrying value. The consolidated financial statements are prepared on the basis as if the reorganization became effective as of the beginning of the first period presented in the accompanying consolidated financial statements of the Company.

 

The accompanying consolidated financial statements reflect the activities of the Company and each of the following entities, including its WFOE and VIE:

 

Name of subsidiaries   Place of
incorporation		   Date of
incorporation
or acquisition		   Percentage
of direct
or indirect		     Principal activities
                   
Shengfeng Holding Limited (“Shengfeng HK”)   Hong Kong   August 18, 2020   100 %   Investment holding of Tianyu
Tianyu Shengfeng Logistics Group Co., Ltd. (“Tianyu”, formerly known as “Fujian Tianyu Shengfeng Logistics Co., Ltd “)   Fujian, the PRC   December 16, 2020   100 %   Investment holding of Shengfeng VIE
                   
VIE and VIE’s subsidiaries:                  
Shengfeng Logistics Group Co., Ltd. (“Shengfeng VIE” or “Shengfeng Logistics”)   Fujian, the PRC   December 7, 2001   100 %   Transportation and warehouse storage management service
Fuqing Shengfeng Logistics Co., Ltd.   Fujian, the PRC   April 15, 2011   100 %   Transportation and warehouse storage management service
Xiamen Shengfeng Logistics Co., Ltd.   Fujian, the PRC   December 22, 2011   100 %   Transportation and warehouse storage management service
Guangdong Shengfeng Logistics Co., Ltd.   Guangdong, the PRC   December 30, 2011   100 %   Transportation and warehouse storage management service
Hainan Shengfeng Supply Chain Management Co., Ltd.   Hainan, the PRC   August 18, 2020   100 %   Transportation and warehouse storage management service
Beijing Tianyushengfeng E-commerce Technology Co., Ltd.   Beijing, the PRC   January 9, 2004   100 %   Transportation and warehouse storage management service
Beijing Shengfeng Supply Chain Management Co., Ltd.   Beijing, the PRC   April 13, 2016   100 %   Transportation and warehouse storage management service
Shengfeng Logistics (Guizhou) Co., Ltd.   Guizhou, the PRC   August 15, 2017   100 %   Transportation and warehouse storage management service
Shengfeng Logistics (Tianjin) Co., Ltd.   Tianjin, the PRC   March 8, 2016   100 %   Transportation and warehouse storage management service
Shengfeng Logistics (Shandong) Co., Ltd.   Shandong, the PRC   March 15, 2016   100 %   Transportation and warehouse storage management service
Shengfeng Logistics Hebei Co., Ltd.   Hebei, the PRC   February 17, 2016   100 %   Transportation and warehouse storage management service
Shengfeng Logistics (Henan) Co., Ltd.   Henan, the PRC   March 28, 2016   100 %   Transportation and warehouse storage management service
Shengfeng Logistics (Liaoning) Co., Ltd.   Liaoning, the PRC   March 2, 2016   100 %   Transportation and warehouse storage management service

 

Name of subsidiaries   Place of
incorporation		   Date of
incorporation
or acquisition		   Percentage
of direct
or indirect		     Principal activities
                   
Shengfeng Logistics (Yunnan) Co., Ltd.   Yunnan, the PRC   January 25, 2016   100 %   Transportation and warehouse storage management service
Shengfeng Logistics (Guangxi) Co., Ltd.   Guangxi, the PRC   February 1, 2016   100 %   Transportation and warehouse storage management service
Hubei Shengfeng Logistics Co., Ltd.   Hubei, the PRC   December 15, 2010   100 %   Transportation and warehouse storage management service
Shengfeng Logistics Group (Shanghai) Supply Chain Management Co., Ltd.   Shanghai, the PRC   August 26, 2015   100 %   Transportation and warehouse storage management service
Shanghai Shengxu Logistics Co., Ltd.   Shanghai, the PRC   June 4, 2003   100 %   Transportation and warehouse storage management service
Hangzhou Shengfeng Logistics Co., Ltd.   Zhejiang, the PRC   June 10, 2010   100 %   Transportation and warehouse storage management service
Nanjing Shengfeng Logistics Co., Ltd.   Jiangsu, the PRC   August 30, 2011   100 %   Transportation and warehouse storage management service
Suzhou Shengfeng Logistics Co., Ltd.   Jiangsu, the PRC   January 14, 2005   90 %   Transportation and warehouse storage management service
Suzhou Shengfeng Supply Chain Management Co., Ltd. (a)   Jiangsu, the PRC   August 9, 2019   100 %   Transportation and warehouse storage management service
Shengfeng Supply Chain Management Co., Ltd.   Fujian, the PRC   June 19, 2014   100 %   Transportation and warehouse storage management service
Fuzhou Shengfeng Transportation Co., Ltd.   Fujian, the PRC   April 18, 2019   100 %   Transportation and warehouse storage management service
Sichuan Shengfeng Logistics Co., Ltd.   Sichuan, the PRC   June 27, 2019   100 %   Transportation and warehouse storage management service
Fujian Shengfeng Logistics Co., Ltd.   Fujian, the PRC   April 2, 2020   100 %   Transportation and warehouse storage management service
Fujian Dafengche Information Technology Co. Ltd.   Fujian, the PRC   August 26, 2020   100 %   Software engineering
Ningde Shengfeng Logistics Co. Ltd.(b)   Fujian, the PRC   November 12, 2018   51 %   Transportation and warehouse storage management service
Fujian Fengche Logistics Co., Ltd. (c)   Fujian, the PRC   October 28, 2020   0 %   Transportation service
Shengfeng Logistics (Zhejiang) Co., Ltd.   Zhejiang, the PRC   February 1, 2021   100 %   Transportation and warehouse storage management service
Chengdu Shengfeng Supply Chain Management Co., Ltd.   Chengdu, the PRC   October 12, 2021   100 %   Supply chain management service
Shengfeng Logistics Group (Ningde) Supply Chain Management Co., Ltd. (d)  

Fujian, the PRC

 

   September 23, 2022   100 %   Supply chain management service
                   

Significant subsidiaries of Tianyu:

          
Yichun Shengfeng Logistics Co., Ltd. (e)   Jiangxi, the PRC   December 1, 2022   100 %   Transportation and warehouse storage management service
Fujian Shengfeng Smart Technology Co., Ltd. (f)   Fujian, the PRC   April 20, 2023   100 %   Property management service
Shenzhen Tianyu Shengfeng Supply Chain Management Co., Ltd. (g)   Shenzhen, the PRC   May 19, 2023   100 %   Supply chain management service
Fujian Pingtan Tianyu Shengfeng Technology Co., Ltd(h)   Fujian, the PRC   September 27, 2023   100 %  

Supply chain management service

 

 

(a)On July 8, 2021, Suzhou Shengfeng Supply Chain Management Co, Ltd. became a wholly owned subsidiary of Shengfeng Logistics.

 

(b)On January 5, 2022, Shengfeng Logistics entered into a share transfer agreement with Fuzhou Puhui Technology Co., Ltd. (“Fuzhou Puhui”), an unrelated third party, to transfer its 49% equity interest in Ningde Shengfeng Logistics Co., Ltd. (“Ningde Shengfeng”) to Fuzhou Puhui. After the transaction, the Company owned a 51% equity interest in Ningde Shengfeng.

 

(c) On June 5, 2023, 100% equity interest in Fujian Fengche Logistics Co., Ltd. was transferred to third parties.

 

(d) On September 23, 2022, Shengfeng Logistics Group (Ningde) Supply Chain Management Co., Ltd. was set up in Fujian, China. This entity is fully owned by Shengfeng Logistics Group Co., Ltd. and will provide supply chain management service in the future.

 

(e) On May 29, 2023, Yichun Shengfeng Logistics Co., Ltd. became a wholly owned subsidiary of Tianyu.

 

(f) On April 20, 2023, Fujian Shengfeng Smart Technology Co., Ltd. was set up in Fujian, China. This entity is fully owned by Tianyu and will provide property management service in the future.

 

(g) On May 19, 2023, Shenzhen Tianyu Shengfeng Supply Chain Management Co., Ltd. was set up in Shenzhen, China. This entity is fully owned by Tianyu and will provide supply chain management service in the future.  

 

(h) On September 27, 2023, Fujian Pingtan Tianyu Shengfeng Technology Co., Ltd was set up in Fujian, China. 51% of the equity interest is owned by Tianyu, and 49% of the equity interest is owned by Shengfeng Supply Chain Management Co., Ltd. This entity will provide supply chain management service in the future.