Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | SHENGFENG DEVELOPMENT Ltd |
Trading Symbol | SFWL |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001863218 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | true |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-41674 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Shengfeng Building |
Entity Address, Address Line Two | No. 478 Fuxin East Road Jin’an District |
Entity Address, City or Town | Fuzhou City |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 350001 |
Title of 12(b) Security | Class A Ordinary Shares |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 711 |
Auditor Name | Friedman LLP |
Auditor Location | New York, New York |
Class A Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 40,520,000 |
Class B Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 41,880,000 |
Auditor One | |
Document Information Line Items | |
Auditor Firm ID | 5395 |
Auditor Name | Marcum Asia CPAs LLP |
Auditor Location | New York, New York |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 122 East 42nd Street |
Entity Address, Address Line Two | 18th Floor |
Entity Address, City or Town | New York |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 10168 |
Contact Personnel Name | Guoping Zheng, Chief Financial Officer |
City Area Code | +86 |
Local Phone Number | 591-83619860 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Current Assets: | |||
Cash | $ 21,285 | $ 18,643 | |
Restricted cash | 2,083 | 275 | |
Notes receivable | 4,885 | 4,175 | |
Accounts receivable, net | 89,110 | 80,621 | |
Prepayments and other current assets, net | 18,292 | 17,934 | |
Due from related parties | 42 | 50 | |
Total Current Assets | 135,697 | 121,698 | |
Property and equipment, net | 40,265 | 47,281 | |
Intangible assets, net | 6,711 | 7,527 | |
Operating lease right-of-use assets, net | 27,880 | 29,910 | |
Long-term investments | 2,040 | 2,142 | |
Deposit for investment | 14,358 | 15,685 | |
Deferred tax assets | 3,587 | 5,224 | |
Deferred issuance costs | 81 | ||
Other non-current assets | 14,640 | 14,742 | |
Total Assets | 245,259 | 244,209 | |
Current Liabilities | |||
Notes payable | 2,046 | ||
Accounts payable | 57,048 | 54,091 | |
Short-term bank loans | 47,655 | 45,956 | |
Due to related parties | 2,414 | 1,877 | |
Salary and welfare payables | 3,241 | 4,559 | |
Accrued expenses and other current liabilities | 6,551 | 7,854 | |
Operating lease liabilities, current | 9,634 | 8,126 | |
Tax payables | 2,207 | 2,889 | |
Total Current Liabilities | 130,796 | 125,352 | |
Operating lease liabilities, non-current | 17,507 | 21,485 | |
Other non-current liabilities | 1,870 | 1,474 | |
Total Liabilities | 150,173 | 148,311 | |
Commitments and Contingencies | |||
Shareholders’ Equity | |||
Additional paid-in capital | 75,575 | 75,575 | |
Statutory reserves | 3,974 | 3,430 | |
Retained earnings | 17,275 | 10,032 | |
Accumulated other comprehensive income (loss) | (5,609) | 2,548 | |
Total Shengfeng Development Limited’s Shareholders’ Equity | 91,223 | 91,593 | |
Non-controlling Interests | 3,863 | 4,305 | |
Total Shareholders’ Equity | 95,086 | 95,898 | |
Total Liabilities and Shareholders’ Equity | 245,259 | 244,209 | |
Class A Ordinary Share | |||
Shareholders’ Equity | |||
Ordinary share value | [1] | 4 | 4 |
Class B Ordinary Share | |||
Shareholders’ Equity | |||
Ordinary share value | [1] | $ 4 | $ 4 |
[1] Shares and per share data are presented on a retroactive basis to reflect the reorganization. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | |
Class A Ordinary Share | |||
Ordinary share, par value (in Dollars per share) | [1] | $ 0.0001 | $ 0.0001 |
Ordinary share, shares authorized | [1] | 400,000,000 | 400,000,000 |
Ordinary share, shares issued | [1] | 38,120,000 | 38,120,000 |
Ordinary share, shares outstanding | [1] | 38,120,000 | 38,120,000 |
Class B Ordinary Share | |||
Ordinary share, par value (in Dollars per share) | [1] | $ 0.0001 | $ 0.0001 |
Ordinary share, shares authorized | [1] | 100,000,000 | 100,000,000 |
Ordinary share, shares issued | [1] | 41,880,000 | 41,880,000 |
Ordinary share, shares outstanding | [1] | 41,880,000 | 41,880,000 |
[1] Shares and per share data are presented on a retroactive basis to reflect the reorganization. |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenues | ||||
Total revenues | $ 370,325 | $ 346,699 | $ 287,464 | |
Cost of revenues | (328,793) | (305,354) | (251,489) | |
Gross profit | 41,532 | 41,345 | 35,975 | |
Operating expenses | ||||
Selling and marketing | (7,427) | (7,720) | (6,139) | |
General and administrative | (24,259) | (25,038) | (23,632) | |
Total operating expenses | (31,686) | (32,758) | (29,771) | |
Income from operations | 9,846 | 8,587 | 6,204 | |
Other income (expense) | ||||
Interest income | 1,274 | 1,330 | 1,329 | |
Interest expense | (2,227) | (2,315) | (1,990) | |
Other income, net | 532 | 559 | 2,070 | |
Income before income taxes | 9,425 | 8,161 | 7,613 | |
Provision for income taxes | (1,599) | (1,517) | (1,570) | |
Net income | 7,826 | 6,644 | 6,043 | |
Less: Income (loss) attributable to non-controlling interests | 39 | (254) | (48) | |
Net income attributable to Shengfeng Development Limited’s shareholders | 7,787 | 6,898 | 6,091 | |
Comprehensive income (loss) | ||||
Net income | 7,826 | 6,644 | 6,043 | |
Foreign currency translation adjustment | (8,384) | 2,085 | 5,395 | |
Total comprehensive income (loss) | (558) | 8,729 | 11,438 | |
Less: comprehensive loss attributable to non-controlling interests | (188) | (241) | (15) | |
Total comprehensive income (loss) attributable to Shengfeng Development Limited | $ (370) | $ 8,970 | $ 11,453 | |
Weighted average shares outstanding used in calculating basic and diluted loss per share: | ||||
Class A and Class B ordinary shares - Basic (in Shares) | [1] | 80,000,000 | 80,000,000 | 80,000,000 |
Earnings per share | ||||
Class A and Class B ordinary shares - Basic (in Dollars per share) | [1] | $ 0.1 | $ 0.09 | $ 0.08 |
Transportation | ||||
Revenues | ||||
Total revenues | $ 346,039 | $ 327,848 | $ 273,685 | |
Warehouse storage and storage management service | ||||
Revenues | ||||
Total revenues | 20,322 | 16,885 | 12,364 | |
Others | ||||
Revenues | ||||
Total revenues | $ 3,964 | $ 1,966 | $ 1,415 | |
[1] Shares and per share data are presented on a retroactive basis to reflect the reorganization. |
Consolidated Statements of In_2
Consolidated Statements of Income and Comprehensive Income (Loss) (Parentheticals) - $ / shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Statement [Abstract] | ||||
Class A and Class B ordinary shares - Diluted | [1] | 80,000,000 | 80,000,000 | 80,000,000 |
Class A and Class B ordinary shares - Diluted | [1] | $ 0.10 | $ 0.09 | $ 0.08 |
[1] Shares and per share data are presented on a retroactive basis to reflect the reorganization. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands | Class A Ordinary Shares | Class B Ordinary Shares | Additional paid-in capital | Statutory reserves | Accumulated other comprehensive income (loss) | Accumulated Retained earnings | Non- controlling interests | Total | |
Balance at Dec. 31, 2019 | $ 4 | $ 4 | $ 75,575 | $ 2,855 | $ (4,886) | $ (2,384) | $ 1,539 | $ 72,707 | |
Balance (in Shares) at Dec. 31, 2019 | [1] | 38,120,000 | 41,880,000 | ||||||
Capital contribution from non-controlling shareholders | 277 | 277 | |||||||
Net income | 6,091 | (48) | 6,043 | ||||||
Statutory reserves | 300 | (298) | (2) | ||||||
Dividend to non-controlling shareholders | (43) | (43) | |||||||
Currency translation adjustments | 5,362 | 33 | 5,395 | ||||||
Balance at Dec. 31, 2020 | $ 4 | $ 4 | 75,575 | 3,155 | 476 | 3,409 | 1,756 | 84,379 | |
Balance (in Shares) at Dec. 31, 2020 | [1] | 38,120,000 | 41,880,000 | ||||||
Disposal of equity investment | (628) | (628) | |||||||
Capital contribution from non-controlling shareholders | 3,418 | 3,418 | |||||||
Net income | 6,898 | (254) | 6,644 | ||||||
Statutory reserves | 275 | (275) | |||||||
Dividend to non-controlling shareholders | |||||||||
Currency translation adjustments | 2,072 | 13 | 2,085 | ||||||
Balance at Dec. 31, 2021 | $ 4 | $ 4 | 75,575 | 3,430 | 2,548 | 10,032 | 4,305 | 95,898 | |
Balance (in Shares) at Dec. 31, 2021 | [1] | 38,120,000 | 41,880,000 | ||||||
Capital contribution from non-controlling shareholders | |||||||||
Net income | 7,787 | 39 | 7,826 | ||||||
Dividend to non-controlling shareholders | (254) | (254) | |||||||
Appropriations to statutory reserves | 544 | (544) | |||||||
Currency translation adjustments | (8,157) | (227) | (8,384) | ||||||
Balance at Dec. 31, 2022 | $ 4 | $ 4 | $ 75,575 | $ 3,974 | $ (5,609) | $ 17,275 | $ 3,863 | $ 95,086 | |
Balance (in Shares) at Dec. 31, 2022 | [1] | 38,120,000 | 41,880,000 | ||||||
[1] Shares and per share data are presented on a retroactive basis to reflect the reorganization. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 7,826 | $ 6,644 | $ 6,043 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property and equipment | 6,955 | 5,925 | 4,728 |
Amortization of right-of-use assets and interest of lease liabilities | 10,813 | 9,548 | 8,587 |
Amortization of intangible assets | 526 | 542 | 493 |
Provision for doubtful accounts | 1,184 | 447 | 572 |
Share of income in equity method investee | (82) | (70) | (55) |
Loss on disposal of property and equipment | 89 | 145 | 180 |
Loss from disposal of subsidiaries | 247 | ||
Deferred income taxes | 1,238 | 1,482 | 1,302 |
Changes in operating assets and liabilities: | |||
Notes receivable | (1,043) | 9,375 | (1,633) |
Accounts receivable | (16,978) | (3,154) | (18,717) |
Inventories | 777 | (808) | |
Prepayments and other current assets | (1,992) | (2,256) | (4,966) |
Other non-current assets | (3,801) | (6,004) | |
Notes payable | 2,119 | (2,364) | 1,533 |
Accounts payable | 7,897 | 2,467 | 13,979 |
Salary and welfare payable | (965) | 419 | 1,257 |
Accrued expenses and other current liabilities | 551 | 110 | 1,836 |
Operating lease liabilities | (11,294) | (9,437) | (8,511) |
Tax payables | (453) | (458) | 2,291 |
Other non-current liabilities | 539 | 4 | 225 |
Net cash provided by operating activities | 6,930 | 16,592 | 2,332 |
Cash flows from investing activities: | |||
Purchase of intangible assets | (340) | (284) | (19) |
Purchase of property and equipment | (6,908) | (25,393) | (7,920) |
Proceeds from disposal of property and equipment | 533 | 1,328 | 118 |
Proceeds from disposal of subsidiary | 480 | ||
Net cash used in investing activities | (6,715) | (23,869) | (7,821) |
Cash flows from financing activities: | |||
Proceeds from short-term bank loans | 61,269 | 62,645 | 62,306 |
Repayments of short-term bank loans | (55,485) | (67,568) | (50,017) |
Due from related parties | 600 | 30 | 226 |
Due to related parties | (652) | 395 | |
Capital contribution from non-controlling shareholders | 3,418 | 277 | |
Dividend to non-controlling shareholders | (254) | (43) | |
Payment of deferred issuance costs | (81) | ||
Net cash provided by (used in) financing activities | 6,049 | (2,127) | 13,144 |
Effects of exchange rate changes on cash and restricted cash | (1,814) | 538 | 1,714 |
Net increase (decrease) in cash and restricted cash | 4,450 | (8,866) | 9,369 |
Cash and restricted cash, beginning of year | 18,918 | 27,784 | 18,415 |
Cash and restricted cash, end of year | 23,368 | 18,918 | 27,784 |
Supplemental cash flow information: | |||
Cash paid for income tax | 187 | 247 | 268 |
Cash paid for interest | 2,227 | 2,160 | 1,990 |
Non-cash transaction in investing and financing activities: | |||
Liabilities incurred (settled) for purchase of property and equipment | (1,214) | 2,599 | 1,969 |
Operating Lease right-of-use assets obtained in exchange for operating lease liabilities | 9,674 | 12,247 | 7,526 |
Reconciliation to amount on consolidated balance sheets: | |||
Cash | 21,285 | 18,643 | 27,317 |
Restricted cash | 2,083 | 275 | 467 |
Total cash and restricted cash | $ 23,368 | $ 18,918 | $ 27,784 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2022 | |
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 RMB 189.6 million) as of December 31, 2022. 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 Date of Percentage Principal activities Shengfeng Holding Limited Hong Kong August 18, 2020 100 % Investment holding of Tianyu Fujian Tianyu Shengfeng Logistics Co., Ltd. (“Tianyu”) Fujian, the PRC December 16, 2020 100 % Investment holding of Shengfeng VIE Shengfeng Logistics Group Co., Ltd. (“Shengfeng VIE” or “ ”) 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 Fuzhou Shengfeng New Material Technology Co., Ltd. (a) Fujian, the PRC August 13, 2019 0 % Packaging material manufacturing Name of subsidiaries Place of Date of Percentage 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. (b) 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 Diaobingshan Hengde Logistics Co., Ltd. (c) Liaoning, the PRC April 23, 2018 0 % 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. (d) Fujian, the PRC November 12, 2018 51 % Transportation and warehouse storage management service Fujian Fengche Logistics Co., Ltd. Fujian, the PRC October 28, 2020 100 % Transportation service Fujian Hangfeng Logistics Technology Co., Ltd. (e) Fujian, the PRC October 13, 2020 0 % Online 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 service Shengfeng Logistics Group (Ningde) Supply Chain Management Co., Ltd. (f) Fujian, the PRC September 23, 2022 100 % Supply chain service Yichun Shengfeng Logistics Co., Ltd. Jiangxi, the PRC December 1, 2022 100 % Transportation and warehouse storage management service (a) On July 14, 2021, Shengfeng Logistics entered into a share transfer agreement with Dongguan Suxing New Material Co., Ltd (“Dongguan Suxing”), a related party, to transfer its 51% equity interest in Fuzhou Shengfeng New Material Technology Co., Ltd. (“New Material Technology”) to Dongguan Suxing for a consideration of $468,973 (RMB3,060,000). The aforementioned transaction was completed during the year ended December 31, 2021. The Company has continued to operate the transportation business through the VIE’s other subsidiaries. Since New Material Technology’s operating revenue was less than 1% of the Company’s consolidated revenue, the transfer did not constitute a strategic shift that would have a major effect on the Company’s operations and financial results. The results of operations for New Material Technology were not reported as discontinued operations in the consolidated financial statements. (b) On July 8, 2021, Suzhou Shengfeng Supply Chain Management Co, Ltd. became a wholly owned subsidiary of Shengfeng Logistics. (c) On April 20, 2021, Shengfeng Logistics entered into a share transfer agreement with Mr. Sun Mingyang, an unrelated third party, among others, to transfer its 51% equity interest in Diaobingshan Hengde Logistics Co., Ltd. to Mr. Sun Mingyang for a consideration of approximately $0.3 million. The aforementioned transaction was completed during the year ended December 31, 2021. The Company has continued to operate the transportation business through the VIE’s other subsidiaries. Since Diaobingshan Hengde Logistics Co., Ltd.’s operating revenue was less than 1% of the Company’s consolidated revenue, the transfer did not constitute a strategic shift that would have a major effect on the Company’s operations and financial results. The results of operations for Diaobingshan Hengde Logistics Co., Ltd. were not reported as discontinued operations in the consolidated financial statements. (d) 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. According to the share transfer agreement, instead of paying any cash consideration to Shengfeng Logistics, Fuzhou Puhui was required to make a capital contribution to fulfill the required registered capital (approximately $14.4 million or RMB100 million) based on its 49% ownership interest (approximately $7.0 million or RMB49 million). The aforementioned transaction has been completed. After the transaction, the Company owned a 51% equity interest in Ningde Shengfeng. (e) On March 16, 2022, Fujian Hangfeng Logistics Technology Co., Ltd. was deregistered, as it has not commenced business operations and the Company has cancelled the future plans for such entity. (f) 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 service in the future. Contractual Agreements The Company conducts its operations through a series of agreements with the VIE and its subsidiaries as stated above. The VIE and its subsidiaries are utilized solely to facilitate the Company’s participation in transportation and warehouse storage management services in the PRC where foreign ownership is restricted. As such, Shengfeng VIE is controlled through contractual arrangements in lieu of direct equity ownership by the Company or any of its subsidiaries. Such contractual arrangements were made effective by a series of six agreements (“Contractual Arrangements”, or VIE Agreements, which were signed on January 7, 2021). As a result of the direct ownership in Tianyu and the Contractual Arrangements, the Company is regarded as the primary beneficiary of the VIE and its subsidiaries. Therefore, the VIE and its subsidiaries were treated as the consolidated entities under U.S. GAAP. The significant terms of the Contractual Arrangements are as follows: Equity Pledge Agreements Each equity holder of the VIE Company has pledged all of his/her shares in the VIE Company and all other rights relevant to the shares to WFOE, as a collateral security for his/her and/or the VIE Company’s obligations to pay off all debt to WFOE, including consulting and services fees payable to WFOE. In the event of default of any payment obligation, WFOE will be entitled to certain rights, including transferring the pledged shares to itself and disposing the pledged shares through a sale or auction. The Equity Pledge Agreement is effective until the full payment of the service fees under the Technical Consultation and Service Agreement and upon termination of Shengfeng Logistics’ obligations under the Technical Consultation and Service Agreement, or upon the transfer of shares of the Equity Shareholders. The purposes of the Equity Pledge Agreement are to (1) guarantee the performance of Shengfeng Logistics’ obligations under the Technical Consultation and Service Agreement, (2) make sure the Equity Shareholders do not transfer or assign the pledged shares, or create or allow any encumbrance that would prejudice Tianyu’s interests without Tianyu’s prior written consent, and (3) provide Tianyu control over Shengfeng Logistics under certain circumstances. In the event Shengfeng Logistics breaches its contractual obligations under the Technical Consultation and Service Agreement, Tianyu will be entitled to dispose of the pledged shares in accordance with relevant PRC laws. As of the date of this annual report, the share pledges under the Equity Pledge Agreement have been registered with the competent PRC regulatory authority. Exclusive Technical Consultation and Service Agreements The VIE Company has entered into an exclusive technical consultation and service agreement with WFOE, pursuant to which, WFOE is engaged to provide certain technical services to the VIE, depending on the licenses obtained and held by the VIE. This technical consultation and service agreement will remain effective for 20 years and it can be extended by WFOE unilaterally. WFOE is entitled to collect service fees for the services it provides to the VIE, and the service fees are adjusted annually through written agreements. Technical service fees are composed of the basic annual fee, which is equal to 50% of the after-tax income of the VIE Company, and a floating fee, which shall not exceed the after-tax income after deducting paid basic annual fees. Due to its control over the VIE Company, WFOE has the right to determine the service fees to be charged to the VIE Company by considering, among others, the technical complexity of the services, the actual costs that may be incurred for providing the services and the VIE Company’s revenue. The Technical Consultation and Service Agreement became effective on January 7, 2021 and will remain effective for 20 years. Such agreement can be extended if Tianyu provides its notice of extension to Shengfeng Logistics unilaterally prior to the expiration date of this agreement. Shengfeng Logistics shall use its best efforts to renew its business license and extend its operation term until and unless otherwise instructed by Tianyu. The Technical Consultation and Service Agreement does not prohibit related party transactions. Upon the establishment of the audit committee at the consummation of this offering, the Company’s audit committee will be required to review and approve in advance any related party transactions, including transactions involving Tianyu or Shengfeng Logistics. Exclusive Call Option Agreements The equity shareholders of the VIE (the “Equity Shareholders”) have granted WFOE the exclusive and irrevocable right to purchase or to designate one or more person(s) at their discretion to purchase part or all of the equity interests in the VIE from the Equity Shareholders for a purchase price at any time, subject to the lowest price permitted by PRC laws and regulations. The VIE and its Equity Shareholders have agreed that without prior written consent of WFOE, the respective Equity Shareholders cannot sell, transfer, pledge or dispose their equity interests, and the VIE cannot sell, transfer, pledge or dispose, including but not limited to, the equity interests, significant assets, significant revenue and significant business. Also as agreed, the VIE cannot declare any dividend or change capitalization structure of the VIE and cannot enter into any loan or investment agreements without prior written consent of WFOE. Furthermore, the Equity Shareholders of the VIE have agreed that any proceeds from, including but not limited to, the sales of the Equity Shareholders’ equity interests in the VIE should be gratuitously paid to WFOE or one or more person(s) at their discretion. The Call Option Agreement will remain effective until all equity options in VIE held by such Equity Shareholders are transferred or assigned to WFOE or their designated representatives. The Call Option Agreement remains effective until all the equity of Shengfeng Logistics is legally transferred under the name of Tianyu and/or other entity or individual designated by it. Voting Rights Proxy Agreement Pursuant to the irrevocable power of attorney, each of the Equity Shareholders of the VIE appointed WFOE as his or her attorney-in-fact to exercise such shareholder’s rights under PRC law and the relevant articles of association, including but not limited to, attending shareholders meetings, voting on their behalf on all matters requiring shareholders’ approval, including but not limited to, sale, transfer, pledge, or disposition of all or part of the Equity Shareholders’ equity interests, and designating and appointing the legal representative, directors, supervisors, chief executive officer and other senior management members of the VIE. Each power of attorney will remain in force until such Equity Shareholder ceases to be a shareholder of the VIE. Each shareholder has waived all his or her rights in connection with his or her equity interests, and confirmed that such rights have been authorized to WFOE under each power of attorney. The Voting Rights Proxy Agreement became effective on January 7, 2021 and will remain effective for 20 years. Such agreement can be extended if Tianyu provides its notice of extension unilaterally prior to the expiration date of this agreement. All other parties shall agree with such extension without reserve. Power of attorney Each of the Equity Shareholders has signed a power of attorney (the “Power of Attorney”), pursuant to which, each of the Equity Shareholders has authorized WFOE to act as his or her exclusive agent and attorney with respect to all rights of such individual as a shareholder of the VIE, including but not limited to: (a) attending shareholders’ meetings; (b) exercising all the shareholder’s rights that shareholders are entitled to under PRC laws and the Articles of Association of VIE, including but not limited to, sale, transfer, pledge and disposition of the equity interests of the VIE; and (c) designating and appointing the legal representative, chairperson, directors, supervisors, chief executive officer and other senior management members of the VIE. The Power of Attorney has the same term as the Voting Rights Proxy Agreement. The Powers of Attorney is irrevocable and continuously valid from the date of execution of the Powers of Attorney, so long as the Equity Shareholders are shareholders of Shengfeng Logistics. Spouse consent letter Each of the respective spouse of the individual Equity Shareholders has executed an additional spousal consent letter which contains terms as described below. Pursuant to the spousal consent letters, each of the respective spouse of the individual Equity Shareholders, unconditionally and irrevocably agreed that the equity interests in the VIE held by and registered in the name of his/her spouse will be disposed of pursuant to the equity pledge agreement, the exclusive call option agreement and the shareholders’ voting rights proxy agreement. The spouse agreed not to assert any rights over the equity interests in the VIE held by his/her spouse. Based on the foregoing Contractual Arrangements, which grant Shengfeng WFOE the effective control of Shengfeng VIE and enable Shengfeng WFOE to receive all of their expected residual returns, the Company accounts for Shengfeng VIE as a VIE. Accordingly, the Company consolidates the accounts of Shengfeng VIE for the periods presented herein, in accordance with Regulation S-X-3A-02 promulgated by the Securities Exchange Commission (“SEC”), and Accounting Standards Codification (“ASC”) 810-10, Consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying audited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for information pursuant to the rules and regulations of the SEC. Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE and VIE’s subsidiaries over which the Company exercises control and, where applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All significant transactions and balances between the Company, its subsidiaries, VIE and VIE’s subsidiaries have been eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. Non-controlling interest represents the portion of the net assets of subsidiaries attributable to interests that are not owned or controlled by the Company. The non-controlling interest is presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interest’s operating results are presented on the face of the consolidated statements of income and comprehensive income as an allocation of the total income for the year between non-controlling shareholders and the shareholders of the Company. All significant transactions and balances between the Company, its subsidiaries, VIE and VIE’s subsidiaries have been eliminated upon consolidation. Use of Estimate and Assumptions The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods presented. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company’s consolidated financial statements include allowance for doubtful accounts, provision for prepayments and other assets, discount rate used in operating lease right-of-use assets and valuation allowance for deferred tax asset. Actual results could differ from these estimates. Variable Interest Entities The Company applies the guidance codified in Accounting Standard Codification 810, Consolidations (“ASC 810”) on accounting for the VIE and its respective subsidiaries, which requires certain variable interest entities to be consolidated by the primary beneficiary of the entity in which it has a controlling financial interest. A VIE is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support; (b) as a group, the holders of the equity investment at risk lack the ability to make certain decisions, the obligation to absorb expected losses or the right to receive expected residual returns, or (c) an equity investor has voting rights that are disproportionate to its economic interest and substantially all of the entity’s activities are on behalf of the investor. The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries and the VIE. The Company is considered the primary beneficiary of a VIE or its subsidiaries if the Company had variable interests, that will absorb the entity’s expected losses, receive the entity’s expected residual returns, or both. The Company’s total assets and liabilities presented in the accompanying consolidated financial statements represent substantially all of the total assets and liabilities of the VIE because the other entities in the consolidation are non-operating holding entities with nominal assets and liabilities. The following financial statement amounts and balances of the VIE were included in the accompanying audited consolidated financial statements for the years ended December 31, 2022, 2021 and 2020, respectively: As of 2022 2021 Current assets $ 135,650 $ 121,698 Non-current assets 109,481 122,511 Total assets $ 245,131 $ 244,209 Current liabilities $ 130,196 $ 125,352 Non-current liabilities 19,377 22,959 Total liabilities $ 149,573 $ 148,311 Net assets $ 95,558 $ 95,898 Years Ended December 31, 2022 2021 2020 Total revenues $ 370,325 $ 346,699 $ 287,464 Cost of revenues $ (328,793 ) $ (305,354 ) $ (251,489 ) Income from operations $ 10,318 $ 8,587 $ 6,204 Net income $ 8,298 $ 6,644 $ 6,043 Risks and Uncertainties After the initial outbreak of COVID-19, from time to time, some instances of COVID-19 infections have emerged in various regions of China, including the infections caused by the Omicron variants in early 2022. For example, a wave of infections caused by the Omicron variants emerged in Shanghai in early 2022 and a series of restrictions and quarantines were implemented to contain the spread. From April to May, 2022, our Shanghai office was shut down and all the businesses in Shanghai were closed, which negatively affected our operational and financial results. Our shanghai office resumed full operation in June 2022. Since December 2022, many of the restrictive measures previously adopted by the PRC governments at various levels to control the spread of the COVID-19 virus have been revoked or replaced with more flexible measures. The COVID-19 pandemic has broadly affected China’s logistic market and the macroeconomy. Our results of operations and financial performance may be adversely affected, to the extent that COVID-19 exerts long-term negative impact on the Chinese economy. The pandemic caused temporary disruptions in the supply chains for companies in China and elsewhere, including us and our customers and suppliers. As a result, we have experienced lower efficiency, increased aging of our trade receivable, longer collection period and more bad debts. which could adversely affect our business operation. However, by leveraging our advantages in the logistics fields and our networks. Our results of operation for the year ended December 31, 2022 have not been materially negatively affected by the COVID-19. The extent to which COVID-19 further impacts our results of operations will depend on the future developments of the pandemic, including new information concerning the global severity of the pandemic and actions to be taken to contain the pandemic, which are highly uncertain and unpredictable. Foreign currencies translation and transaction The reporting currency of the Company is the U.S. dollar. The Company in China conducts its businesses in the local currency, Renminbi (RMB), as its functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end of the period. The statement of income accounts is translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments included in accumulated other comprehensive income (loss) amounted to $(5,609) and $2,548 as of December 31, 2022 and 2021, respectively. The balance sheet amounts, with the exception of shareholders’ equity, at December 31, 2022 and 2021 were translated at RMB 6.9646 and RMB 6.3757, respectively. The shareholders’ equity accounts were stated at their historical rates. The average translation rates applied to the statement of income accounts for the years ended December 31, 2022, 2021 and 2020 were RMB 6.7261, RMB 6.4515 and RMB 6.8976 to $1.00 respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. Cash Cash represents demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal or use, and which have original maturities of three months or less and are readily convertible to known amounts of cash. The Company maintains most of its bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured. As of December 31, 2022 and 2021, the Company has approximately $21.3 million and $18.6 million, respectively, of cash in banks, all held in the banks located in the mainland of China. Most of cash balance as of December 31, 2022 and 2021 are denominated in RMB. Restricted cash Restricted cash represents cash that cannot be withdrawn without the permission of third parties. The Company’s restricted cash is substantially cash balance in designated bank accounts as security for payment processing and lawsuit. Restriction on the use of such cash and the interest earned thereon is imposed by the banks and remains effective throughout the term of the security period. Upon maturities of the security period, the bank’s deposits are available for general use by the Company. Fair value of financial instruments ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 — inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments, including cash, restricted cash, accounts receivable, prepayments and other current assets, due from related parties, accounts payable, due to a related party, short-term bank loans, salary and welfare payables, accrued expenses and other current liabilities, current operating lease liabilities and taxes payable, approximates their recorded values due to their short-term maturities. The carrying value of long-term lease liabilities approximated its fair value as of December 31, 2022 and 2021 as the interest rates applied reflect the current market yield for comparable financial instruments. Notes receivable Notes receivable represents trade accounts receivable due from various customers where the customers’ banks have guaranteed the payments. The notes are non-interest bearing and normally paid within three to twelve months. The Company has the ability to submit request for payment to the customer’s bank earlier than the scheduled payment date but will incur an interest charge and a processing fee. As of December 31, 2022 and 2021, no notes were pledged . Accounts receivable, net Accounts receivable represents the Company’s right to consideration in exchange for goods and services that the Company has transferred to the customer before payment is due. Accounts receivable is stated at the historical carrying amount, net of an estimated allowance for uncollectible accounts. The Company reviews on a periodic basis for doubtful accounts for the outstanding trade receivable balances based on historical collection trends, aging of receivables and other information available. Additionally, the Company evaluates individual customer’s financial condition, credit history, and the current economic conditions to make specific bad debt provisions when it is considered necessary, based on (i) the Company’s specific assessment of the collectability of all significant accounts; and (ii) any specific knowledge we have acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. The allowance for doubtful accounts was approximately $3.1 million and $2.4 million as of December 31, 2022 and 2021, respectively. Prepayments and other assets, net Prepayment and other assets primarily consist of VAT recoverable, advances to vendors for purchasing goods, long-lived assets or services that have not been received or provided, advances to employees, security deposits made to customers and advances to employees. Prepayment and other assets are classified as either current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance becomes doubtful. The Company uses the aging method to estimate the allowance for uncollectible balances. The allowance is also based on management’s best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management’s estimate of credit worthiness and the economic environment. The provisions for prepayments and other assets were approximately $0.5 million and $0.4 million as of December 31, 2022 and 2021, respectively. Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the following estimated useful lives, taking into account any estimated residual value. Useful Life Building 10-40 years Office equipment 5-10 years Machinery and tools 5 years Vehicles 5-7 years Leasehold improvements Lesser of the lease term or the estimated useful lives of the assets The Company constructs certain of its property and equipment. In addition to costs under the construction contracts, external costs that are directly related to the construction and acquisition of such property and equipment are capitalized. Depreciation is recorded at the time assets are ready for their intended use. Such properties are classified to the appropriate categories of property and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. The cost and related accumulated depreciation and amortization of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. Intangible assets, net Intangible assets consist primarily of land use rights and licensed software acquired, which are stated at cost less accumulated amortization and impairment, if any. Intangible assets are amortized using the straight-line method over the estimated useful lives, which are generally 5 to 50 years or based on the contract terms. The estimated useful lives of amortized intangible assets are reassessed if circumstances occur that indicate the original estimated useful lives have changed. The estimated useful lives are as follows: Useful life Land use right 32 - 50 years Licensed software 5 years Impairment of long-lived assets The Company evaluates its long-lived assets, including property and equipment and intangibles with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Company evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. The adjusted carrying amount of the assets become new cost basis and are depreciated over the assets’ remaining useful lives. Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Given no events or changes in circumstances indicating the carrying amount of long-lived assets may not be recovered through the related future net cash flows, the Company did not recognize any impairment loss on long-lived assets for the years ended December 31, 2022, 2021 and 2020. Long-term investments Long-term investments are primarily consisted of equity investments in privately held entities accounted for using the measurement alternative and equity investments accounted for using the equity method. On January 1, 2019, the Company adopted ASU 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. According to the guidance, the Company started to record equity investments at fair value, with gains and losses recorded through net earnings. And the Company elected to measure certain equity investments without readily determinable fair value at cost, less impairments, plus or minus observable price changes and assess for impairment quarterly. Equity investments accounted for using the equity method The Company accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control, using the equity method. The Company adjusts the carrying amount of the investment and recognizes investment income or loss for its share of the earnings or loss of the investee after the date of investment. The Company assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entity, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investments in a privately held entity, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. Deferred issuance costs Pursuant to ASC 340-10-S99-1, offering costs directly attributable to an offering of equity securities are deferred and would be charged against the gross proceeds of the offering as a reduction of additional paid-in capital. These costs include legal fees related to the registration drafting and counsel, consulting fees related to the registration preparation, SEC filing and print related costs, exchange listing costs, and road show related costs. Notes payable Notes payable represents trade accounts payable due to various suppliers where the Company’s banks have guaranteed the payment. The notes are non-interest bearing and normally paid within three to twelve months. The Company shall keep sufficient cash in designated bank accounts or notes receivable pledged to the bank as security for payment processing. Revenue recognition The Company adopted ASC Topic 606, Revenue from Contracts with Customers, effective as of January 1, 2019. Accordingly, the audited consolidated financial statements for the years ended December 31, 2022, 2021 and 2020 are presented under ASC 606. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is the transaction price the Company expects to be entitled to in exchange for the promised services in a contract in the ordinary course of the Company’s activities and is recorded net of value-added tax (“VAT”). To achieve that core principle, the Company applies the following steps: Step 1: Identify the contract (s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation The Company generates revenues from providing transportation services and warehouse storage and management services. No practical expedients were used when adoption ASC 606. Revenue recognition policies for each type of revenue stream are as follow: Transportation services The Company derives its transportation service revenue by providing logistic services based on customers’ order. The Transportation service is considered a performance obligation as the customer can only obtain benefits when the goods are delivered to the destination. The transaction price is predetermined according to the distance of the transportation as well as the volume of the goods. Generally, the credit term is within two months. There is no other obligation in our contracts, such as return, refund or warranties. Revenue is recognized at the point in time when delivery of goods is made and customer has accepted delivery. Warehouse storage and storage management services The Company derives revenue from the warehouse storage and storage management services provided to third-party companies, including handling services, security and other services. The promised services in each warehouse storage and storage management services contract are accounted as a single performance obligation, as the promised services in a contract are not distinct and are considered as a significant integrated service. The consideration is predetermined in the contract according to the unit price, space and term as well as the services used with no other obligations such as return, refund or warranties. No variable considerations exist such as discounts, rebates, refunds, credits, price concession, incentive performance bonuses or penalties. Pursuant to the service agreement, the Company provides the clients with warehouse storage and management services during the service period. Service fees for which are paid by such customers on a monthly basis. The revenue is recognized on a straight-line basis over the period of the warehouse storage and management service term, as customers simultaneously receive and consume the benefits of these services throughout the service period. Principal and Agent Considerations In the Company’s transportation business, the Company utilizes independent contractors and third-party carriers in the performances of some transportation services as and when needed. GAAP requires us to evaluate, using a control model, whether the Company itself promises to provide services to the customers (as a principal) or to arrange for services to be provided by another party (as an agent). Based on the Company’s evaluation using a control model, the Company determined that in all of its major business activities, it serves as a principal rather than an agent within their revenue arrangements. Revenue and the associated purchased transportation costs are both reported on a gross basis within the consolidated statements of income and comprehensive income. Contract costs Contract costs include contract acquisition costs and contract fulfillment costs which are all recorded within prepayments, deposits, and other assets in the consolidated balance sheets and unaudited condensed consolidated balance sheets. Contract acquisition costs consist of incremental costs incurred by the Company to originate contracts with customers. Contract acquisition costs, which generally include costs that are only incurred as a result of obtaining a contract, are capitalized when the incremental costs are expected to be recovered over the contract period. All other costs incurred regardless of obtaining a contract are expensed as incurred. Contract acquisition costs are amortized over the period the costs are expected to contribute directly or indirectly to future cash flows, which is generally over the contract term, on a basis consistent with the transfer of goods or services to the customer to which the costs relate. Contract fulfillments costs consist of costs incurred by the Company to fulfill a contract with a customer and are capitalized when the costs generate or enhance resources that will be used in satisfying future performance obligations of the contract and the costs are expected to be recovered. Capitalized contract fulfillment costs generally include contracted services, direct labor, materials, and allocable overhead directly related to resources required to fulfill the contract. Contract fulfillment costs are recognized in cost of revenue during the period that the related costs are expected to contribute directly or indirectly to future cash flows, which is generally over the contract term, on a basis consistent with the transfer of goods or services to the customer to which the costs are related. There were no contract acquisition costs and fulfillment costs as of December 31, 2022 and 2021. Contract assets A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before a payment is due, a contract asset is recognized for the earned consideration that is conditional. Contract assets are subject to impairment assessment. Contract liabilities A contract liability is recognized when a payment is received or a payment is due (whichever is earlier) from a customer before the Company transfers the related services. Contract liabilities are recognized as revenue when the Company performs under the contract. Revenue recognized that was included in contract liabilities at the beginning of the period was approximately $0.7 million, $2.5 million and $0.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022 and 2021, contract liabilities amounted to approximately $1.1 million and $1.0 million, respectively, were included at “accrued expenses and other current liabilities.” Disaggregated information of revenues by services: Years Ended December 31, 2022 2021 2020 Revenues: Transportation $ 346,039 $ 327,848 $ 273,685 Warehouse storage and storage management service 20,322 16,885 12,364 Others 3,964 1,966 1,415 Total revenues $ 370,325 $ 346,699 $ 287,464 As of December 31, 2022 and 2021, the Company had outstanding contracts for providing transportation and warehouse management services amounting to approximately $1.0 million and $1.5 million, all of which is expected to be completed within 12 months from December 31, 2022 and 2021, respectively. The Company’s operations are primarily based in the PRC, where the Company derived a substantial portion of revenues. Disaggregated information of revenues by geographic locations are as follows: Years Ended December 31 2022 2021 2020 Fujian $218,523 $197,647 $154,155 Guangdong 17,848 22,447 28,622 Beijing 36,958 36,365 24,362 Shandong 14,159 12,069 12,858 Liaoning 7,815 7,698 10,507 Jiangsu 6,556 7,926 9,039 Zhejiang 15,782 11,466 8,681 Others 52,884 51,081 39,240 Total $ 370,325 $ 346,699 $ 287,464 Government Subsidies The Company’s PRC based subsidiaries received government subsidies from certain local governments. The Company’s government subsidies consisted of specific subsidies and other subsidies. Specific subsidies are subsidies that the local government has provided for a specific purpose, such as truck station subsidies. Other subsidies are the subsidies that the local government has not specified its purpose for and are not tied to future trends or performance of the Company; receipt of such subsidy income is not contingent upon any further actions or performance of the Company and the amounts do not have to be refunded under any circumstances. The Company recorded specific subsidies as accrued expenses and other current liabilities when received. For specific subsidies, they are recognized as other income on a straight-line method within the useful life of relevant assets. Other subsidies are recognized as other income which is included in the consolidated statements of income upon receipt as further performance by the Company is not required. The government subsidies were $0.8 million, $0.6 million and $2.2 million for the years ended December 31, 2022, 2021 and 2020. Advertising expenses Advertising expenditures are expensed as incurred and such expenses were included as part of selling and marketing expenses. For the years ended December 31, 2022, 2021 and 2020, the advertising expenses amounted to approximately $0.05 million, $0.08 million and $0.06 million, respectively. Employee defined contribution plan Full-time employees of the Company in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to them. Chinese labor regulations require that the Company make contributions to the government for these benefits based on government prescribed percentage of the employee’s salaries. The Company has no legal obligation for the benefits beyond the contributions. The total amount was expensed as incurred. For the years ended December 31, 2022, 2021 and 2020, employee welfare contribution expenses amounted to approximately $1.3 million, $2.4 million and $2.9 million, respectively. Leases The Company has elected the package of practical expedients permitted which allows the Company not to reassess the following at adoption date: (i) whether any expired or existing contracts are or contains a lease, (ii) the lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases (i.e. whether those costs qualify for capitalization under ASU 2016-02). The Company also elected the short-term lease exemption for certain classes of underlying assets including office space, warehouses and equipment, with a lease term of 12 months or less. The Company determines whether an a |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable, Net | 3. Accounts receivable, net Accounts receivable, net consisted of the following: As of As of Accounts receivable $ 92,225 $ 83,019 Less: Allowance for doubtful accounts (3,115 ) (2,398 ) Total $ 89,110 $ 80,621 Movement of allowance of doubtful accounts Year Ended Year Ended Year Ended Beginning balance $ 2,398 $ 2,537 $ 2,162 Provision for doubtful accounts 1,130 428 399 Written-off (178 ) (624 ) (185 ) Exchange rate effect (235 ) 57 161 Ending balance $ 3,115 $ 2,398 $ 2,537 |
Prepayments and Other Assets, N
Prepayments and Other Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Prepayments and Other Assets, Net [Abstract] | |
Prepayments and other assets, net | 4. Prepayments and other assets, net The prepayments and other assets, net consisted of the following: As of As of Deposits (a) $ 9,149 $ 8,414 Prepayments for goods and services 4,004 2,470 VAT recoverable (b) 3,843 5,081 Prepayments for long-lived assets (c) 15,789 15,998 Advances to employees 63 228 Others 538 924 Prepayments and other assets 33,386 33,115 Less: Provisions for prepayments and other assets (454 ) (439 ) Prepayments and other assets, net 32,932 32,676 Less: Prepayments and other current assets, net (18,292 ) (17,934 ) Other non-current assets $ 14,640 $ 14,742 (a) Deposits represent the refundable deposits to the lessors for the leased warehouses and office space. (b) VAT recoverable represents the balances that the Company can utilize to deduct its value-added tax liabilities within the next 12 months. (c) Prepayments for long-lived assets represent mainly prepayments for constructions of logistic stations. Year Ended Year Ended Year Ended Beginning balance $ 439 $ 591 $ 382 Provisions for prepayments and other assets 54 - 173 Written-off - (164 ) - Exchange rate effect (39 ) 12 36 Ending balance $ 454 $ 439 $ 591 |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | 5. Property and equipment, net Property and equipment, net consisted of the following: As of As of Buildings $ 24,150 $ 26,411 Office equipment 3,230 3,401 Machinery and tools 1,879 1,886 Vehicles 37,841 43,330 Leasehold improvements 4,964 6,310 Constructions in progress 2,215 752 Subtotal 74,279 82,090 Less: accumulated depreciation and amortization (34,014 ) (34,809 ) Property and equipment, net $ 40,265 $ 47,281 As of December 31, 2022 and 2021, buildings with net book value amounted to approximately $18.1 million and $20.2 million, respectively, were pledged for obtaining various of loans (See Note 10 Short-term bank loans). Depreciation and amortization expenses for the years ended December 31, 2022, 2021 and 2020, amounted to approximately $7.0 million, $5.9 million and $4.7 million, respectively. For the years ended December 31, 2022, 2021 and 2020, depreciation and amortization included in the cost of revenue were approximately $6.1 million, $4.9 million and $4.2 million, respectively. For the years ended December 31, 2022, 2021 and 2020, depreciation and amortization included in selling, general and administrative expenses were approximately $0.9 million, $1.0 million and $0.5 million, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Prepayments and Other Assets, Net [Abstract] | |
Intangible assets, net | 6. Intangible assets, net The Company’s intangible assets with definite useful lives primarily consisted of land use rights and licensed software. The following table summarizes the components of acquired intangible asset balances. As of As of Land use rights $ 8,011 $ 8,751 Licensed software 2,133 1,973 Subtotal 10,144 10,724 Less: accumulated amortization (3,433 ) (3,197 ) Intangible assets, net $ 6,711 $ 7,527 As of December 31, 2022 and 2021, land use rights with net book value amounted to approximately $2.6 million and $2.9 million, respectively, were pledged for obtaining various of loans (See Note 10 Short-term bank loans). Amortization expenses for the years ended December 31, 2022, 2021 and 2020, amounted to approximately $0.5 million, $0.5 million and $0.5 million, respectively. The future amortization for the intangible assets is expected to be as follows: Twelve months ending December 31, Estimated 2023 $ 547 2024 547 2025 327 2026 321 2027 289 Thereafter 4,680 Total $ 6,711 |
Long-term investments
Long-term investments | 12 Months Ended |
Dec. 31, 2022 | |
Long-term investments [Abstract] | |
Long-term investments | 7. Long-term investments The Company’s long-term investments consisted of the following: As of As of Equity investments accounted for using the equity method $ 2,040 $ 2,142 For the years ended December 31, 2022, 2021 and 2020, the Company has the following equity investments which were accounted for using the equity method: Movement of equity method investment Year Ended Year Ended Year Ended 2020 Beginning balance $ 2,142 $ 2,024 $ 1,839 Share of income in equity method investee 82 70 55 Exchange rate effect (184 ) 48 130 Ending balance $ 2,040 $ 2,142 $ 2,024 In 2007, the Company acquired 40% of the equity interests of Fujian Bafang Shengfeng Logistics Co., Ltd (“Fujian Bafang”) with a cash consideration of approximately $1.7 million (RMB12 million). As the Company is able to exercise significant influence over Fujian Bafang after such acquisition, the Company therefore accounted for this investment under the equity method of accounting. No impairment loss was recognized for the long-term investments for the years ended December 31, 2022, 2021 and 2020. |
Deposit for Investment
Deposit for Investment | 12 Months Ended |
Dec. 31, 2022 | |
Deposit For Investment [Abstract] | |
Deposit for investment | 8. Deposit for investment On August 16, 2019, the Company signed a Share Purchase Agreement (“2019 SPA”) with Huasheng Group Limited (the “Huasheng”), an unrelated third party to the Company. Pursuant to the SPA, Huasheng agreed to sell and the Company agreed to buy 100% of the equity interests of Fujian Yingfu Integrated circuit Co., Ltd. (“Yingfu” or the “Target Company”), which is a wholly owned subsidiary of Huasheng. The total consideration is approximately $28.7 million (RMB 200 million). The Company paid approximately $14.3 million (RMB 100 million) to Huasheng in 2019 and $8.6 million (RMB 60 million) in the March to May, 2020 as the deposit for the investment according to the SPA. Huasheng is requested to pay 8% of the deposit received as interest to the Company if the transaction is not consummated by June 30, 2020. The 2019 SPA was terminated later based on mutual agreement of all parties and a new share purchase agreement (“2020 SPA”) has been entered into on December 18, 2020. Pursuant to the 2020 SPA, the Company will buy a newly established subsidiary of Yingfu with a land use right for the same consideration. The deposit for the 2020 SPA is approximately $14.3 million (RMB 100 million). As a result, approximately $8.6 million (RMB 60 million) from the initial payment made has been returned to the Company in December 2020. Additionally, pursuant to the 2020 SPA, any party who unilaterally terminates the agreement shall pay the other party a breakage fee in the amount of approximately $3.1 million (RMB 20 million) and Huasheng agreed to make interest payment of approximately $1.2 million (approximately RMB 8.36 million) to the Company before December 31, 2020 based on the term stated in SPA 2019 and is requested to pay 8% of the deposit received as interest to the Company if the transaction is not consummated by December 15, 2021. The interest payment was received in full by the Company on December 29, 2020. Due to the delay of the government’s approval on this transaction involved with the land use right, the 2020 SPA agreement expired in December 2021. A new agreement (“2021 SPA”) has been entered into to replace the 2020 SPA on December 31, 2021. There were no other changes for the consideration nor the deposit. Moreover, Huasheng agreed to make an interest payment of RMB 8 million (approximately $1.2 million) before January 30, 2022 based on the term stated in SPA 2020 and is requested to pay 8% of the deposit received payable to the Company if the transaction is not consummated by December 15, 2022. The Company received the interest of approximately $1.2 million (RMB 8.0 million) on January 19, 2022. On December 23, 2022, a new agreement (“2022 SPA”) has been entered into to replace the 2021 SPA, which expired on the same date. There are no other changes for the consideration nor the deposit, expect that Yingfu agreed to make an interest payment of RMB 8 million (approximately $1.2 million) before March 15, 2023 based on the term stated in SPA 2021 and is requested to pay 6% of the deposit received as interest to the Company if the transaction is not consummated by December 15, 2023. The Company received the interest of approximately $1.2 million (RMB 8.0 million) on February 15, 2023. Interest income has been recorded by the Company for the years ended December 31, 2022, 2021 and 2020. This transaction is still pending for the government’s approval as of the issuance date of this report. Huasheng has performed its obligations according to the 2021 SPA and there is no evidence of impairment noted by the Company as of December 31, 2022 and 2021. As of December 31, 2022 and 2021, the deposit for investment was approximately $14.4 million and $15.7 million (RMB100 million, difference due to exchange rates), respectively. Upon the completion of this investment, the Company plans to expand its transportation business and build up more logistic stations. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related party transactions | 9. Related party transactions The table below sets forth the major related parties and their relationships with the Company as of December 31, 2022 and 2021, and for the years ended December 31, 2022, 2021 and 2020: Name of related parties Relationship with the Company Fujian Bafang An equity investee of the Company Fuzhou Tianyu Shengfeng Industrial Co., Ltd (“Fuzhou Tianyu”) A company controlled by Yongteng Liu, who is the brother of Yongxu Liu, CEO and Chairman of the Company Fuzhou Tianyu Shengfeng Property Management Co., Ltd (“Fuzhou Tianyu Management”) A company under the control of a shareholder Fuzhou Tianyu Yuanmei Catering Co., Ltd (“Fuzhou Tianyu Catering”) A company under the control of a shareholder Beijing Union Logistics Co., Ltd (“Beijing Banglian”) (1) A company under the control of a shareholder Fujian Desheng Logistics Co., Ltd (“Fujian Desheng”) A company under the control of a shareholder Dongguan Suxing New Material Co., Ltd (“Suxing”) (2) A company under the control of a non-controlling shareholder Hainan Tianyi Logistics Distribution Co., Ltd (“Hainan Tianyi”) (3) An equity investee of the Company Yongteng Liu CEO’s brother (1) In January 2022, the Company’s shareholder sold the equity interest in Beijing Banglian. (2) On July 14, 2021, Shengfeng Logistics entered into a share transfer agreement with Dongguan Suxing New Material Co., Ltd (“Dongguan Suxing”), a related party, to transfer its 51% equity interest in Fuzhou Shengfeng New Material Technology Co., Ltd. (“New Material Technology”) to Dongguan Suxing (Note 1). After the transaction, Suxing became a non-related party to the Company. (3) On September 15, 2021, the Company signed a share purchase agreement with a third party. According to such agreement, the Company sold its 5% equity interests in Hainan Tianyi to such third party. After the transaction, Hainan Tianyi became a non-related party to the Company. i) Significant transactions with related parties were as follows: Year ended Year ended Year ended Transportation services to Fujian Bafang $ 18 $ - $ 7 Transportation services to Fujian Desheng - 349 - Sales of material to Suxing - - 49 Total $ 18 $ 349 $ 56 Year ended Year ended Year ended Transportation services from Beijing Banglian $ - $ 2,265 $ 2,750 Transportation services from Hainan Tianyi $ - $ 1,207 $ 1,109 Transportation services from Fujian Bafang $ 1,196 $ 157 $ 144 Purchase raw materials from Suxing $ - $ 577 $ 781 Lease services from Fuzhou Tianyu $ 305 $ 358 $ 296 Lease services from Fuzhou Tianyu Management $ 35 $ - $ - ii) Guarantees The Company’s shareholder, CEO and Chairman, Yongxu Liu, his spouse, Xiying Yang, and his brother, Yongteng Liu, were the guarantors of the Company’s short-term bank loans (See Note 10). iii) Significant balances with related parties were as follows: As of As of Due from related parties Fuzhou Tianyu $ 42 $ 46 Beijing Banglian - 4 Total $ 42 $ 50 As of As of Due to related parties Fujian Bafang (a) $ 1,694 $ 1,574 Fuzhou Tianyu 84 29 Beijing Banglian - 246 Fuzhou Tianyu Management 36 24 Hainan Tianyi - 4 Yongteng Liu 600 - Total $ 2,414 $ 1,877 (a) On December 10, 2007, the Company entered into an interest-free loan agreement with Fujian Bafang for a principal amount of approximately $1.4 million (RMB 9.6 million). Such loan is due on demand. |
Short-Term Bank Loans
Short-Term Bank Loans | 12 Months Ended |
Dec. 31, 2022 | |
Long-term investments [Abstract] | |
Short-term bank loans | 10. Short-term bank loans The following table presents short-term bank loans from commercial banks as of December 31, 2022 and 2021: As of As of China Minsheng Bank Fuzhou Branch $ 10,769 $ 11,765 Bank of China Fuzhou Jin’an Branch 11,487 10,509 China Merchant Bank Fuzhou Branch 10,769 9,411 Xiamen International Bank Co., Ltd. Fuzhou Branch of 7,179 7,842 Haixia Bank of Fujian Fuzhou Jin’an Branch 1,436 784 Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch 1,436 1,568 Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch 1,436 1,568 Industrial Bank Fuzhou Huqian Sub Branch 861 941 Industrial Bank Fuzhou Branch 1,421 1,568 China Everbright Bank Co., Ltd Fuzhou Tongpan Branch 861 - Total $ 47,655 $ 45,956 As of December 31, 2022 and 2021, the total short-term bank borrowings balance of the Company was approximately $47.7 million and $46.0 million, respectively. The short-term bank loans outstanding as of December 31, 2022 and 2021 carried a weighted average interest rate of approximately 4.48% and 4.70% per annum, respectively. China Minsheng Bank Fuzhou Branch On September 10, 2021 and September 22, 2021, respectively, the Company entered into short-term loan facility agreements with China Minsheng Bank Fuzhou Branch, pursuant to which a facility of up to approximately $5.8 million (RMB37 million) and a facility of up to approximately $5.96 million (RMB38 million) were made available to the Company, at a fixed interest rate of 4.35% per annum The $5.8 million (RMB 37 million) loan matures on September 10, 2022 and the $5.96 million (RMB38) loan matures on September 22, 2022. The Company made early repayment for the loans of approximately $5.8 million (RMB37 million) on July 7, 2022, $2.82 million (RMB18 million) on July 14, 2022 and $3.14 million (RMB20 million) on July 18, 2022. After the repayment, the Company obtained additional loans of approximately $5.3 million (RMB37 million) on July 7, 2022, $2.6 million (RMB18 million) on July 14, 2022 and $2.9 million (RMB20 million) on July 18, 2022 at a fixed interest rate of 4% per annum. As of December 31, 2022, loan balance under the RMB75 million credit line was $10.8 million (RMB75 million). The aforementioned loans were repaid on maturity on February 7, February 14 and February 18, 2023. After repayment of the loans of RMB75 million, the Company obtained the note payable amounted $8.6 million (RMB60 million) issued by the same bank on February 17, 2023 and February 20, 2023 to pay to its suppliers. Bank of China Fuzhou Jin’an Branch On June 28, 2021, the Company entered into a short-term facility agreement with Bank of China Fuzhou Jin’an Branch pursuant to which a total facility of up to approximately $12.3 million (RMB80 million) was made available to the Company at a fixed interest rate of 4.35% per annum The Company made early repayment for the loans of approximately $2.6 million (RMB17 million) on May 18, 2022, $3.0 million (RMB20 million) on June 15, 2022 and $4.6 million (RMB 30 million) on June 7, 2022. After the repayment, the Company obtained additional loans of approximately $2.4 million (RMB17 million) on May 26, 2022, $4.3 million (RMB30 million) on June 13, 2022, and $2.9 million (RMB20 million) on June 23, 2022, under the same loan facility agreement entered in June 2021. As of December 31, 2022, loan balance under the $11.5 million (RMB80 million) credit line was $11.5 million (RMB 80 million). The aforementioned loan’s mature dates are March 20, 2023, May 25, 2023, June 12, 2023 and June 22, 2023, respectively. On October 21, 2022, the Company signed supplementary contracts with Bank of China Fuzhou Jin’an Branch to change the interest rate of the loan obtained in May and June 2022, from 4% per annum to 2.5% per annum benefited from the special refinancing policy for transportation and logistics industry created by the People’s Bank of China and the Ministry of Transport, and the new interest rate is effective from the date of the contracts. The Company was in compliance with the financial covenant as of December 31, 2022 and 2021. On March 21, 2023 and April 24, 2023, the Company repaid approximately $1.9 million (RMB13 million) and $0.1 million (RMB1 million) to the bank, respectively. On March 15, 2023, the Company entered into a short-term facility agreement with Bank of China Fuzhou Jin’an Branch pursuant to which a total facility of up to approximately $11.5 million (RMB80 million) was made available to the Company. Loans from this facility are collateralized by the real estate and the land use rights, amounted to approximately $8.6 million in total, for the property located at No. 50, Sun Road, Wangting Town, Xiangcheng District, Suzhou, Jiangsu Province owned by the Company and guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company. Pursuant to the loan facility agreement, the Company shall meet two financial covenants that: (i) its current ratio shall be no less than 0.85; and (ii) the financing exposure balance shall be no more than approximately $57.4 million (RMB400,000,000) or 25% of the annual revenue. The unpaid loan balance under the prior loan agreements were transferred to this new loan facility agreement according to the terms stated in the new agreement. On April 7, 2023, the Company drew down approximately $1.9 million (RMB13 million) under this line at a fixed interest rate of 2.5% per annum. China Merchant Bank Fuzhou Branch During the year ended December 31, 2020, the Company entered into a short-term loan facility agreement with China Merchant Bank Fuzhou Branch pursuant to which a total facility of up to approximately $9.2 million (RMB60 million) was made available to the Company. On September 25, October 12, 22, 26 and November 28, 2020, the Company drew down approximately $2.1 million (RMB14 million), $2.7 million (RMB17.5 million), $1.4 million (RMB9 million), $1.4 million (RMB 9.3 million) and $0.03 million (RMB0.2 million) of loans, at a fixed interest rate of 4.5% per annum. These short-term loans were collateralized by the real estate amounted to approximately $2.0 million, and the land use rights for the property located at No. 50, Sun Road, Wangting Town, Xiangcheng District, Suzhou, Jiangsu Province, amounted to approximately $1.0 million, owned by the Company and guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and one of the VIE’s subsidiaries. On August 3, August 26, 2021, the Company repaid approximately $4.6 million (RMB30 million) and $3.1 (RMB20 million) to the bank, respectively. After the repayments were made, the Company drew down approximately $4.6 million (RMB30 million) on August 3, 2021, $3.1 (RMB20 million) on August 26, 2021 and $1.6 million (RMB10 million) on September 7, 2021 under the same loan facility credit line for a period of six months. On December 24, 2021, the Company entered into a new short-term loan facility agreement with China Merchant Bank Fuzhou Branch to replace the short-term loan facility agreement signed with China Merchant Bank Fuzhou Branch during fiscal year 2020. Pursuant to such new short-term loan facility agreement, a total facility of up to an aggregate principal amount of approximately $11.6 million (RMB75 million) was made available to the Company. The loan facility term is from December 24, 2021 to December 23, 2022. The short-term loans that may be drawn under this loan facility are collateralized by the real estate valued at approximately $1.8 million, and the land use rights for the property located at No. 50, Sun Road, Wangting Town, Xiangcheng District, Suzhou, Jiangsu Province, valued at approximately $0.9 million, owned by the Company, and are guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and one of the VIE’s subsidiaries. The unpaid loan balance under the prior loan agreement was transferred to this new loan facility agreement according to the terms stated in the new agreement. On January 14 and 21, 2022, approximately $2.3 million (RMB15 million) and $2.3 million (RMB15 million) were repaid by the Company, which loans were originally obtained in August 2021. On January 14 and 21, 2022, the Company drew down approximately $2.4 million (RMB17 million) and $2.2 million (RMB15 million) of loans under this new loan facility with an interest rate of 4.50% per annum. On December 15, 2022 and December 16, 2022, the Company repaid approximately $2.4 million (RMB17 million) and $2.2 million (RMB15 million) to the bank, respectively. After the repayments were made, the Company drew down approximately $2.3 million (RMB16 million) and $3.0 million (RMB21 million) of loans under this new loan facility with an interest rate of 4.30% per annum. On January 28, February 28 and March 17, 2022, approximately $2.3 million (RMB15 million), $0.8 million (RMB5 million) and $1.5 million (RMB10 million) were repaid by the Company, respectively, which were loans were originally obtained in August and September, 2021. On February 22, March 8 and April 12, 2022, the Company drew down approximately $1.4 million (RMB10 million), $0.7 million (RMB5 million) and $1.4 million (RMB10 million) of loans, respectively, under this new loan facility with an interest rate of 4.50% per annum. On December 19, 2022, the Company repaid approximately $1.4 million (RMB10 million), $0.7 million (RMB5 million) and $1.4 million (RMB10 million) to the bank. After the repayments were made, the Company drew down approximately $3.6 million (RMB25 million) on September 19, 2022 under this new loan facility with an interest rate of 4.30% per annum. On December 22, 2022, the Company drew down approximately $1.4 million (RMB10 million) of loans under this new loan facility with an interest rate of 4.30% per annum. On January 14, 2022, Fujian Shengfeng Logistics Co., Ltd. drew down approximately $1.5 million (RMB10 million) of loan with an interest rate of 4.50% per annum. On December 21, 2022, the Company repaid approximately $1.5 million (RMB10 million) to the bank. On January 14, 2022, Fuqing Shengfeng Logistics Co., Ltd. drew down approximately $0.5 million (RMB3 million) of loans under this loan facility with an interest rate of 4.50% per annum. On December 21, 2022, the Company repaid approximately $0.5 million (RMB3 million) to the bank. After the repayments were made, On December 21, 2022, Fuqing Shengfeng Logistics Co., Ltd. drew down approximately $0.4 million (RMB3 million) of loans under this loan facility with an interest rate of 4.30% per annum. As of December 31, 2022, loan balance under the RMB75 million credit line was approximately $10.8 million (RMB75 million). Xiamen International Bank Co., Ltd. Fuzhou Branch During the year ended December 31, 2019, the Company entered into a short-term loan facility agreement with Xiamen International Bank Co., Ltd. Fuzhou Branch pursuant to which a total facility of up to approximately $4.3 million (RMB30 million) was made available to the Company as a revolving loan facility for a two-year period (From August 13, 2019 to August 13, 2021). On September 26, 2019, the Company made the first draw down of the loan at a fixed interest rate of 6.2% per annum. The loan amount was required to be repaid every quarter; the Company can withdraw and repay again for the next quarter until the end of the loan period. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company. On August 13, 2021, the Company repaid approximately $4.3 million (RMB30 million) to the bank for the final draw down. During the year ended December 31, 2020, the Company entered into a short-term loan facility agreement with Xiamen International Bank Co., Ltd. Fuzhou Branch pursuant to which a total facility of up to approximately $3.1 million (RMB20 million) was made available to the Company as a revolving loan facility for a two-year period. On April 8, 2020, the Company drew down approximately $3.1 million (RMB20 million) of loan at a fixed interest rate of 5.6% per annum. The loan amount was required to be repaid every quarter; the Company can withdraw and repay again for the next quarter until the end of the loan period. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company. On April 8, 2022, the Company repaid approximately $3.1 million (RMB20 million) to the bank for the final draw down. On August 11, 2021, the Company entered into a short-term loan facility agreement with Xiamen International Bank Co., Ltd. Fuzhou Branch pursuant to which a total facility of up to approximately $4.3 million (RMB30 million) was made available to the Company as a revolving loan facility for a three-year period (From August 13, 2021 to August 13, 2024). This is the extension of the revolving loan facility agreement signed back to August 2019. On August 19, 2021, the Company drew down approximately $4.3 million (RMB30 million) of loan at a fixed interest rate of 5.6% per annum. The principal amount outstanding is required to be repaid every quarter; the Company can withdraw and repay again for the next quarter until the end of the loan period. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company. As of December 31, 2022, loan balance under the $4.3 million (RMB30 million) credit line was approximately $4.3 million (RMB30 million). On April 8, 2022, the Company entered into a short-term loan facility agreement with Xiamen International Bank Co., Ltd. Fuzhou Branch, pursuant to which a total facility of up to approximately $3.1 million (RMB20 million) was made available to the Company as a revolving loan facility for a two-year period from April 8, 2022 to April 8, 2024. On April 15, 2022, the Company drew down approximately $2.9 million (RMB20 million) of the loan at a fixed interest rate of 5.5% per annum. The loan amount was required to be repaid every six months; the Company can withdraw and repay again for the next quarter until the end of the loan period. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company. On April 15, 2023, the Company repaid approximately $2.9 million (RMB20 million) to the bank. On April 17,2023, the Company drew down approximately $2.9 million (RMB20 million) of the loan at a fixed interest rate of 5.5% per annum for a maturity to April 8, 2024. As of December 31, 2022, loan balance under the RMB 20 million credit line was approximately $2.9 million (RMB20 million). Haixia Bank of Fujian Fuzhou Jin’an Branch On April 7, 2020, the Company entered into a short-term loan agreement with Haixia Bank of Fujian Fuzhou Jin’an Branch for a principal amount of $1.5 million (RMB10 million) at a fixed interest rate of 5.0% per annum. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company. This borrowing has been repaid in full on April 28, 2021. On April 2, 2021, the Company entered into a new loan agreement with Fujian Fuzhou Jin’an Branch for a principal amount of approximately $1.5 million (RMB10 million) at a fixed interest rate of 5.5% per annum. The terms of said new loan agreement are substantially similar with the original short-term loan agreement. The said new loan will mature in one year. On December 14, 2021, the Company made early repayment of approximately $0.75 million (RMB5 million) to the bank. Subsequently on March 28, 2022, the Company made repayment for the rest of the loan. On June 16, 2022, the Company entered into a new short-term loan agreement with Haixia Bank of Fujian Fuzhou Jin’an Branch for a principal amount of approximately $1.4 million (RMB10 million) at a fixed interest rate of 5% per annum. The short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company and the VIE Shengfeng Logistic Group Co., Ltd. In addition, the short-term loan was further collateralized by 26 motor vehicles under one of the VIE’s subsidiaries Fujian Shengfeng Logistic Co., Ltd. On March 27, 2023, the collateral was changed to 6 motor vehicles under Fujian Shengfeng Logistic Co., Ltd. The Company received the loan proceeds on July 13, 2022. Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch On November 10, 2020, the Company entered into a short-term loan agreement with Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch for a principal amount of $1.5 million (RMB10 million) at a fixed interest rate of 3.35% per annum. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and Fujian Yunlian Shengfeng Industrial Co. Ltd. On November 3, 2021, the Company made a repayment of the loan in full. After the repayment, the Company entered into a new short-term loan agreement with Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch on the same day for the same amount of the original loan, with the same terms as the previous agreement, except the fixed interest rate increased to 5.50% per annum. The aforementioned loan has been repaid on November 1, 2022 in full. After the repayment, the Company entered into a new short-term loan agreement with Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch on November 9, 2022 and drew down the loan on November 9, 2022 for the same amount of the original loan, with the same terms as the previous agreement and the new loan will be mature on November 8, 2023. Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch On September 17, 2021, the Company entered into a short-term loan agreement with Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch for a principal amount of approximately $1.5 million (RMB10 million) at a fixed interest rate of 4.65% per annum. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and Fuqing Shengfeng Logistics Co., Ltd. The loan has been early repaid on August 18, 2022. On August 19, 2022, the Company entered into a new short-term loan agreement with Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch for the same amount of the original loan, with the same terms as the previous agreement. On February 19, 2023, the Company made repayment in full. On February 20, 2023, the Company entered into a new short-term loan agreement with Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch for the same amount of the original loan, with the same terms as the previous agreement and received the proceeds on the same date. Industrial Bank Fuzhou Huqian SubBranch On March 9, 2021, one of the VIE’s subsidiaries, Fuqing Shengfeng Logistics Co., Ltd., entered into a short-term loan facility agreement with Industrial Bank Fuzhou Huqian Sub-Branch pursuant to which a total facility of up to approximately $1.5 million (RMB10 million) was made available to Fuqing Shengfeng Logistics Co., Ltd. On March 26, 2021, Fuqing Shengfeng Logistics Co., Ltd. drew down approximately $0.9 million (RMB6 million) of the loan at a fixed interest rate of 3.35% per annum. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and Shengfeng Logistics, the VIE. On January 20, 2022, Fuqing Shengfeng Logistics Co., Ltd. made repayment in full. On January 21, 2022, the Company drew down approximately $0.9 million (RMB6 million) of the loan at a fixed interest rate of 3.8% per annum. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and Shengfeng Logistics, the VIE. The new loan will be mature on January 21, 2023. As of December 31, 2022, loan balance under the $1.5 million (RMB10 million) credit line was approximately $0.9 million (RMB6.0 million). On January 28, 2023, Fuqing Shengfeng Logistics Co., Ltd. made repayment in full. Subsequently on February 3, 2023, one of the VIE’s subsidiaries, Fuqing Shengfeng Logistics Co., Ltd., entered into a short-term loan facility agreement with Industrial Bank Fuzhou Huqian sub-branch pursuant to which a total facility of up to approximately $0.9 million (RMB6 million) was made available to Fuqing Shengfeng Logistics Co., Ltd. to January 18, 2024. On February 7, 2023, Fuqing Shengfeng Logistics Co., Ltd. drew down approximately $0.9 million (RMB6 million) of the loan at a fixed interest rate of 3.7% per annum. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and Shengfeng Logistics, the VIE. Industrial Bank Co., Ltd. Fuzhou Branch On March 10, 2021, the Company entered into a loan agreement Industrial Bank Co., Ltd. Fuzhou Branch for a principal amount of approximately $1.5 million (RMB10 million) at a fixed interest rate of 4.35% per annum. Approximately $1.4 million (RMB9 million) and $0.2 million (RMB1 million) were received on March 10, 2021 and March 12, 2021, respectively. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company. The loan was scheduled to mature in one year from its date of origination. The loan was subsequently repaid in full on March 17, 2022. On March 4, 2022, the Company entered into a short-term loan credit line agreement with Industrial Bank Co., Ltd. Fuzhou Branch for a principal amount of approximately $1.4 million (RMB10 million) at a fixed interest rate of 4.35% per annum for the period from March 4, 2022 to November 11, 2022, and the Company can withdraw from this credit line during the period. This short-term loan credit line was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company. Approximately $1.3 million (RMB9 million) and $0.1 million (RMB1 million) were received on March 17, 2022 and March 21, 2022, respectively. The loan was subsequently repaid in full on November 8, 2022. On November 9, 2022, the Company drew down approximately $1.4 million (RMB9.9 million) of loan at a fixed interest rate of 4.2% per annum, which will be matured on November 9, 2023. As of December 31, 2022, loan balance under the $1.5 million (RMB 10 million) credit line was $1.4 million (RMB9.9 million). China Everbright Bank Co., Ltd Fuzhou Tongpan Branch On June 1, 2021, one of the VIE’s subsidiaries, Fuqing Shengfeng Logistics Co., Ltd., entered into a short-term loan agreement with China Everbright Bank Co., Ltd. Fuzhou Tongpan Branch for a term of one year in the principal amount of approximately $0.9 million (RMB6 million) at a fixed interest rate of 4.6% per annum. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company. On December 29, 2021, the Company made repayment in full. On January 19, 2022, Fuqing Shengfeng Logistics Co., Ltd. entered into a short-term loan agreement with China Everbright Bank Co., Ltd. Fuzhou Tongpan Branch for a term of one year in the principal amount of approximately $0.9 million (RMB6 million) at a fixed interest rate of 4.6% per annum. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and Shengfeng Logistics, the VIE. The loan proceeds in the amount of $0.9 million (RMB6 million) were received by the Company on January 19, 2022. As of December 31, 2022, loan balance under the $0.9 million (RMB6 million) credit line was $0.9 million (RMB6 million). On January 9, 2023, the Company repaid approximately $0.9 million (RMB 6 million) to the bank. On January 9, 2023, Fuqing Shengfeng Logistics Co., Ltd. entered into a short-term loan agreement with Fuzhou Tongpan Branch of China Everbright Bank Co., Ltd. in the principal amount of approximately $0.9 million (RMB6 million) at a fixed interest rate of 4.1% per annum due on July 11, 2023. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and Shengfeng Logistics, the VIE. The loan proceeds in the amount of approximately $0.9 million (RMB6 million) were received by the Company on January 9, 2023. Bank of Communications Co., Ltd. Zhanjiang Branch On June 9, 2021, the shareholders of Shengfeng Logistics Group Co., Ltd. approved and adopted a resolution to submit an application for a short-term factoring financing (with the account receivable from SDIC Guangdong Bioenergy Co., Ltd.) of approximately $0.02 million (RMB153,449) from Bank of Communications Co., Ltd., Zhanjiang Branch. The proceeds of this financing were subsequently received on July 5, 2021. The Company collected the full amount of the outstanding receivables from SDIC Guangdong Bioenergy Co., Ltd. on October 14, 2021. The financing was settled on October 14, 2021. Guangxi Beibu Gulf Bank Nanning Branch On January 17, 2023, one of the VIE’s subsidiaries, Shengfeng Logistics Guangxi Co., Ltd. entered into a short-term loan agreement with Guangxi Beibu Gulf Bank Nanning branch in the principal amount of approximately $0.7 (RMB5 million) at a fixed interest rate of 4.16% per annum due on July 14, 2023. This short- term loan was collateralized by a note receivable which amounted to approximately $0.8 (RMB5.3 million). For the years ended December 31, 2022 and 2021, the interest expenses for the above short-term bank loans were approximately $2.1 million, $2.3 million and $2.0 million, respectively. As of December 31, 2022, the Company had an aggregate credit line of approximately $43.1million (RMB300 million) and approximately $42.5 million (RMB 295.9 million) was used. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Accrued expenses and other liabilities | 11. Accrued expenses and other liabilities Accrued expenses and other current liabilities consisted of the following: As of As of Rental and freight logistics deposits received $ 3,498 $ 3,319 Payables for long-term assets 1,360 2,384 Government subsidies 1,467 1,259 Contract liabilities 1,142 1,012 Cash collected on behalf of the customers (a) 181 262 Service payables 12 122 Contingent liability 258 434 Others 503 536 Total $ 8,421 $ 9,328 Less: accrued expenses and other current liabilities (6,551 ) (7,854 ) Other non-current liabilities $ 1,870 $ 1,474 (a) The Company collects the goods considerations from the recipients after they deliver the goods to the determined locations on behalf of the customers, and will pay to the customers on a regular basis. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | 12. Leases Operating leases as lessee As of December 31, 2022 and 2021, the Company has operating leases recorded on its consolidated balance sheets for certain office spaces and warehouses that expire on various dates through 2031. The Company does not plan to cancel the existing lease agreements for its existing facilities prior to their respective expiration dates. When determining the lease term, the Company considers options to extend or terminate the lease when it is reasonably certain that it will exercise or not exercise that option. The Company’s lease arrangements may contain both lease and non-lease components. The Company has separately accounted for lease and non-lease components based on their nature. Payments under the Company’s lease arrangement are fixed. The following tables shows ROU assets and lease liabilities, and the associated financial statement line items: As of As of Assets Operating lease right-of-use assets, net $ 27,880 $ 29,910 Liabilities Operating lease liabilities, current $ 9,634 $ 8,126 Operating lease liabilities, non-current $ 17,507 $ 21,485 Weighted average remaining lease term (in years) 5.1 5.6 Weighted average discount rate (%) 5.78 5.80 Information related to operating lease activities during the years ended December 31, 2022 and 2021 are as follows: Year ended Year ended Year ended Operating lease right-of-use assets obtained in exchange for lease liabilities $ 9,674 $ 12,247 $ 7,526 Operating lease expense Amortization of right-of-use assets 9,157 7,963 7,248 Interest of lease liabilities 1,656 1,585 1,339 Total $ 10,813 $ 9,548 $ 8,587 Maturities of lease liabilities were as follows: Lease Twelve months ending December 31, 2023 $ 9,924 2024 7,017 2025 4,433 2026 3,055 2027 2,071 Thereafter 4,706 Total lease payments 31,206 Less: imputed interest (4,065 ) Total $ 27,141 |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Taxes | 13. Taxes (a) Corporate Income Taxes (“CIT”) Cayman Islands Under the current tax laws of Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the Company’s subsidiaries incorporated in Hong Kong are subject to 16.5% on its taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiaries incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax. The Company did not make any provision for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. PRC The Company’s PRC subsidiaries, VIE and VIE’s subsidiaries are governed by the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (the “EIT Laws”), domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. The total impact of preferential tax rates amounted to approximately $0.3 million, $0.2 million and $0.2 million for the years ended December 31, 2022,2021 and 2020, respectively and the impact to EPS is not significant for the years ended December 31, 2022, 2021 and 2020. Beijing Shengfeng Supply Chain Management Co., Ltd. and Guangdong Shengfeng Logistics Co., Ltd. were qualified as High and New Technology Enterprise (“HNTE”) and are eligible to enjoy a preferential tax rate of 15% from 2020 to 2022 to the extent they have taxable income under the Enterprise Income Tax (“EIT”) Law, as long as they maintain the HNTE qualification and duly conducts relevant EIT filing procedures with the relevant tax authority. The Company expects to renew the HNTE by May 2023. Beijing Tianyushengfeng e-commerce Technology Co. Ltd. has been qualified as HNTE and is eligible to enjoy a preferential tax rate of 15% from 2021 to 2023 to the extent it has taxable income under the Enterprise Income Tax Law. Shengfeng Supply Chain Management Co. Ltd. is eligible to enjoy a preferential tax rate of 15% from 2020 to 2022 and further extended to 2025 to the extent it has taxable income under the Enterprise Income Tax (“EIT”) Law due to the local preferential tax policy. Several VIE’s subsidiaries, including Chengdu Shengfeng Supply Chain Management Co., Ltd., Shengfeng Logistics (Liaoning) Co., Ltd., Sichuan Shengfeng Logistics Co., Ltd., Shengfeng Logistics (Guangxi) Co., Ltd., etc., are qualified as small and micro enterprises, thus the preferential effective tax rates of 2.5 i) The components of income before income taxes are as follows: Year ended Year ended Year ended Non-PRC $ (472 ) $ - $ - PRC 9,897 8,161 7,613 Total $ 9,425 $ 8,161 $ 7,613 ii) The components of the income tax provision are as follows: Year ended Year ended Year ended Current $ 361 $ 21 $ 268 Deferred 1,238 1,496 1,302 Total $ 1,599 $ 1,517 $ 1,570 iii) The following table reconciles PRC statutory rates to the Company’s effective tax rate: The following table reconciles the China statutory rates to the Company’s effective tax rate for the years ended December 31, 2022, 2021 and 2020: Year ended Year ended Year ended PRC statutory income tax rate 25.0 % 25.0 % 25.0 % Effect of preferential tax rates (1) (2.8 )% (3.8 )% (2.8 )% Eligible additional deduction (3.3 )% (3.2 )% (2.7 )% Impact of different tax rates in other jurisdictions 1.3 % - % - % Non-taxable and exemptions (3.3 )% - % - % Permanent differences (2) 0.1 % 0.6 % 1.1 % Effective income tax rate 17.0 % 18.6 % 20.6 % (1) Preferential tax rates for small and micro enterprises and high-tech entities. (2) Permanent differences mainly consisted of non-deductible meal and entertainment fees in PRC tax returns. iv) The following table summarizes deferred tax assets and liabilities resulting from differences between financial accounting basis and tax basis of assets and liabilities: As of As of Deferred tax assets: Net operating losses carryforward $ 2,300 $ 4,104 Allowance for doubtful accounts 874 699 Deferred income (a) 279 315 Intangible assets (b) 134 106 Subtotal 3,587 5,224 Less: valuation allowance - - Deferred tax assets $ 3,587 $ 5,224 (a) Deferred income represents the assets related government subsidies, which will amortize on a straight-line basis within the useful life of related assets. The tax basis is recognized when the Company received the subsidies. (b) Intangible asset represents the amortization temporary difference of licensed software. Management uses 10 years useful life as the tax basis, which is different from the 5 years useful life in accounting basis. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making this assessment. Recovery of substantially all of the Company’s deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are recoverable, valuation allowances of nil Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2022 and 2021, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur interests and penalties tax for the years ended December 31, 2022, 2021 and 2020. (b) Tax payable Tax payable consisted of the following: As of As of Value-added tax payable $ 1,828 $ 2,523 Income tax payable 185 18 Other taxes payable 194 348 Total $ 2,207 $ 2,889 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' equity | 14. Shareholders’ equity Ordinary shares The Company was established as a holding company under the laws of Cayman Islands on July 16, 2020. The original authorized number of ordinary shares is 50,000 shares with par value of US$1.00 per share. On December 18, 2020, the Company amended the Memorandum of Association to increase the authorized share capital to 400,000,000 Class A Ordinary Shares and 100,000,000 Class B Ordinary Shares and reduced the par value to US$0.0001 per share. As of December 31, 2022 and 2021, 38,120,000 Class A Ordinary shares and 41,880,000 Class B Ordinary shares were issued and outstanding. The shares are presented on a retroactive basis to reflect the recapitalization. Additional paid-in capital As of December 31, 2022 and 2021, additional paid-in capital in the consolidated balance sheets represented the combined contributed capital of the Company’s subsidiaries. On December 31, 2022, Suzhou Shengfeng, one of VIE subsidiaries declared a dividend of approximately $2.5 million based on the subsidiary’s performance up to October 31, 2022, of which approximately $0.3 million was paid to the non-controlling shareholders; For the year ended December 31, 2021, one of the non-controlling shareholders made capital contributions totaling approximately $3.4 million to the Company. Statutory reserves The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. The statutory reserve as determined pursuant to PRC statutory laws totaled approximately $4.0 million and $3.4 million as of December 31, 2022 and 2021, respectively. Restricted assets The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiary. Relevant PRC statutory laws and regulations permit payments of dividends by Shengfeng WFOE, Shengfeng VIE and its subsidiaries (collectively “Shengfeng PRC entities”) only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the accompanying consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of Shengfeng PRC entities. Shengfeng PRC entities are required to set aside at least 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, Shengfeng PRC entities may allocate a portion of its after-tax profits based on PRC accounting standards to enterprise expansion fund and staff bonus and welfare fund at its discretion. Shengfeng PRC entities may allocate a portion of its after-tax profits based on PRC accounting standards to a discretionary surplus fund at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by State Administration of Foreign Exchange. As a result of the foregoing restrictions, Shengfeng PRC entities are restricted in their ability to transfer their assets to the Company. Foreign exchange and other regulation in the PRC may further restrict Shengfeng PRC entities from transferring funds to the Company in the form of dividends, loans and advances. As of December 31, 2022 and 2021, amounts restricted are the paid-in-capital and statutory reserve of Shengfeng PRC entities, which amounted to approximately $79.6 million and $79.0 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and contingencies | 15. Commitments and contingencies (a) Lease commitments The Company’s commitment for minimum lease payments under the remaining operating leases as of December 31, 2022 is $3.5 million. (b) Contingencies The Company is subject to legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome arising out of any such matters will have a material adverse effect on our consolidated financial position, cash flows or results of operations on an individual basis or in the aggregate. As of December 31, 2022, the Company had various legal proceedings or disputes related to the customers, suppliers, labor contracts and traffic accidents, which were still pending court decisions. Approximately $1.0 million (RMB7.1 million) was frozen in bank due to the pending lawsuits, which was included in restricted cash as of December 31, 2022. As of the date of this audit report, the above-mentioned amount is still frozen in bank and the other legal proceedings or disputes have no material impact to the Company’s business or financial performances. (c) Variable interest entity structure It is the opinion of management that (i) the corporate structure of the Company is in compliance with existing PRC laws and regulations; (ii) the Contractual Arrangements are valid and binding, and do not result in any violation of PRC laws or regulations currently in effect; and (iii) the business operations of Tianyu and the VIE are in compliance with existing PRC laws and regulations in all material respects. However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to the foregoing opinion of the Company’s management. If the current corporate structure of the Company or the Contractual Arrangements is found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its corporate structure and operations in the PRC to comply with changing and new PRC laws and regulations. In the opinion of management, the likelihood of loss in respect of the Company’s current corporate structure or the Contractual Arrangements is remote based on current facts and circumstances. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent events | 16. Subsequent events On April 4, 2023, the Company completed its IPO of 2,400,000 Class A ordinary shares at a public offering price of $4.00 per share. The Company received aggregate gross proceeds of $9.6 million from the offering, before deducting underwriting discounts and other related expenses. Net proceeds amounted to approximately $8.5 million after deducting underwriting discounts and other related expenses. The Class A ordinary shares began trading on the Nasdaq Capital Market on March 31, 2023 under the ticker symbol “SFWL.” In connection with the IPO, the Company issued to the Representative and its affiliates warrants, exercisable for a period of one year after the effective date of the registration statement, entitling the holders of the warrants to purchase an aggregate of up to 144,000 Ordinary Shares at a per share price of $4.46. |
Unaudited Condensed Financial I
Unaudited Condensed Financial Information of The Parent Company | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Condensed Financial Information of the Parent Company [Abstract] | |
Unaudited Condensed financial information of the parent company | 17. Unaudited Condensed financial information of the parent company The Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. Payment of dividends by entities organized in the PRC are subject to limitations, procedures and formalities. Regulations in the PRC currently permit payments of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in the PRC. The Company’s PRC subsidiaries are also required to set aside at least 10% of its after-tax profit based on PRC accounting standards each year to its statutory reserves account until the accumulative amount of such reserves reaches 50% of its respective registered capital. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. In addition, the Company’s operations and revenues are conducted and generated in the PRC, all of the Company’s revenue being earned and currency received is denominated in RMB. RMB is subject to the foreign exchange control regulation in China, and, as a result, the Company may be unable to distribute any dividends outside of China due to PRC foreign exchange control regulations that restrict the Company’s ability to convert RMB into USD. Regulation S-X requires that the condensed financial information of registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party. The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company’s PRC subsidiary exceed 25% of the consolidated net assets of the Company. Certain information and footnote disclosures normally included in financial statements prepared in conformity with generally accepted accounting principles have been condensed or omitted. The Company’s investment in subsidiary is stated at cost plus equity in undistributed earnings of subsidiaries. December 31, December 31, 2022 2021 ASSETS Current assets Cash $ 47 $ - Total Current Assets 47 - Deferred issuance costs 81 - Investment in subsidiaries and VIEs (restricted) 91,695 91,593 Non-current assets 91,776 91,593 Total Assets $ 91,823 $ 91,593 Liabilities and Equity Current liabilities Due to a related party 600 - Total Current Liabilities 600 - Total liabilities 600 - Commitments and Contingencies Shareholders’ Equity Class A Ordinary share, $0.0001 par value, 400,000,000 shares authorized; 38,120,000 shares issued and outstanding as of December 31, 2022 and 2021 4 4 Class B Ordinary share, $0.0001 par value, 100,000,000 shares authorized; 41,880,000 shares issued and outstanding as of December 31, 2022 and 2021 4 4 Additional paid-in capital 79,549 75,575 Retained earnings 17,275 10,032 Accumulated other comprehensive income (loss) (5,609 ) 2,548 Total Shareholders’ Equity 91,223 91,593 Total Liabilities and Shareholders’ Equity $ 91,823 $ 91,593 Years Ended December 31, 2022 2021 2020 Equity in earnings of subsidiaries $ 8,259 $ 6,898 $ 6,091 General and administrative expenses (472 ) - - NET INCOME 7,787 6,898 6,091 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment (8,157 ) 2,072 5,362 COMPREHENSIVE INCOME (LOSS) $ (370 ) $ 8,970 $ 11,453 Years Ended December 31, 2022 2021 2020 Cash flows from operating activities Net income $ 7,787 $ 6,898 $ 6,091 Adjustments to reconcile net income to net cash used in operating activities: Equity income of subsidiaries and VIEs (8,259 ) (6,898 ) (6,091 ) Net cash used in operating activities (472 ) - - Cash flows from investing activities - - - Cash flows from financing activities Due to related party 600 - - Deferred issuance costs (81 ) - - Net cash provided by operating activities 519 - - Net increase in cash and restricted cash 47 - - Cash and restricted cash, beginning of year $ - $ - $ - Cash and restricted cash, end of year $ 47 $ - $ - |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying audited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for information pursuant to the rules and regulations of the SEC. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE and VIE’s subsidiaries over which the Company exercises control and, where applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All significant transactions and balances between the Company, its subsidiaries, VIE and VIE’s subsidiaries have been eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. Non-controlling interest represents the portion of the net assets of subsidiaries attributable to interests that are not owned or controlled by the Company. The non-controlling interest is presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interest’s operating results are presented on the face of the consolidated statements of income and comprehensive income as an allocation of the total income for the year between non-controlling shareholders and the shareholders of the Company. All significant transactions and balances between the Company, its subsidiaries, VIE and VIE’s subsidiaries have been eliminated upon consolidation. |
Use of Estimate and Assumptions | Use of Estimate and Assumptions The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods presented. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company’s consolidated financial statements include allowance for doubtful accounts, provision for prepayments and other assets, discount rate used in operating lease right-of-use assets and valuation allowance for deferred tax asset. Actual results could differ from these estimates. |
Variable Interest Entities The Company applies the guidance codified in Accounting Standard Codification 810, Consolidations (“ASC 810”) on accounting for the VIE and its respective subsidiaries, which requires certain variable interest entities to be consolidated by the primary beneficiary of the entity in which it has a controlling financial interest. A VIE is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support; (b) as a group, the holders of the equity investment at risk lack the ability to make certain decisions, the obligation to absorb expected losses or the right to receive expected residual returns, or (c) an equity investor has voting rights that are disproportionate to its economic interest and substantially all of the entity’s activities are on behalf of the investor. The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries and the VIE. The Company is considered the primary beneficiary of a VIE or its subsidiaries if the Company had variable interests, that will absorb the entity’s expected losses, receive the entity’s expected residual returns, or both. The Company’s total assets and liabilities presented in the accompanying consolidated financial statements represent substantially all of the total assets and liabilities of the VIE because the other entities in the consolidation are non-operating holding entities with nominal assets and liabilities. The following financial statement amounts and balances of the VIE were included in the accompanying audited consolidated financial statements for the years ended December 31, 2022, 2021 and 2020, respectively: As of 2022 2021 Current assets $ 135,650 $ 121,698 Non-current assets 109,481 122,511 Total assets $ 245,131 $ 244,209 Current liabilities $ 130,196 $ 125,352 Non-current liabilities 19,377 22,959 Total liabilities $ 149,573 $ 148,311 Net assets $ 95,558 $ 95,898 Years Ended December 31, 2022 2021 2020 Total revenues $ 370,325 $ 346,699 $ 287,464 Cost of revenues $ (328,793 ) $ (305,354 ) $ (251,489 ) Income from operations $ 10,318 $ 8,587 $ 6,204 Net income $ 8,298 $ 6,644 $ 6,043 | |
Risk and Uncertainty | Risks and Uncertainties After the initial outbreak of COVID-19, from time to time, some instances of COVID-19 infections have emerged in various regions of China, including the infections caused by the Omicron variants in early 2022. For example, a wave of infections caused by the Omicron variants emerged in Shanghai in early 2022 and a series of restrictions and quarantines were implemented to contain the spread. From April to May, 2022, our Shanghai office was shut down and all the businesses in Shanghai were closed, which negatively affected our operational and financial results. Our shanghai office resumed full operation in June 2022. Since December 2022, many of the restrictive measures previously adopted by the PRC governments at various levels to control the spread of the COVID-19 virus have been revoked or replaced with more flexible measures. The COVID-19 pandemic has broadly affected China’s logistic market and the macroeconomy. Our results of operations and financial performance may be adversely affected, to the extent that COVID-19 exerts long-term negative impact on the Chinese economy. The pandemic caused temporary disruptions in the supply chains for companies in China and elsewhere, including us and our customers and suppliers. As a result, we have experienced lower efficiency, increased aging of our trade receivable, longer collection period and more bad debts. which could adversely affect our business operation. However, by leveraging our advantages in the logistics fields and our networks. Our results of operation for the year ended December 31, 2022 have not been materially negatively affected by the COVID-19. The extent to which COVID-19 further impacts our results of operations will depend on the future developments of the pandemic, including new information concerning the global severity of the pandemic and actions to be taken to contain the pandemic, which are highly uncertain and unpredictable. |
Foreign currencies translation and transaction | Foreign currencies translation and transaction The reporting currency of the Company is the U.S. dollar. The Company in China conducts its businesses in the local currency, Renminbi (RMB), as its functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end of the period. The statement of income accounts is translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments included in accumulated other comprehensive income (loss) amounted to $(5,609) and $2,548 as of December 31, 2022 and 2021, respectively. The balance sheet amounts, with the exception of shareholders’ equity, at December 31, 2022 and 2021 were translated at RMB 6.9646 and RMB 6.3757, respectively. The shareholders’ equity accounts were stated at their historical rates. The average translation rates applied to the statement of income accounts for the years ended December 31, 2022, 2021 and 2020 were RMB 6.7261, RMB 6.4515 and RMB 6.8976 to $1.00 respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. |
Cash | Cash Cash represents demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal or use, and which have original maturities of three months or less and are readily convertible to known amounts of cash. The Company maintains most of its bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured. As of December 31, 2022 and 2021, the Company has approximately $21.3 million and $18.6 million, respectively, of cash in banks, all held in the banks located in the mainland of China. Most of cash balance as of December 31, 2022 and 2021 are denominated in RMB. |
Restricted cash | Restricted cash Restricted cash represents cash that cannot be withdrawn without the permission of third parties. The Company’s restricted cash is substantially cash balance in designated bank accounts as security for payment processing and lawsuit. Restriction on the use of such cash and the interest earned thereon is imposed by the banks and remains effective throughout the term of the security period. Upon maturities of the security period, the bank’s deposits are available for general use by the Company. |
Fair value of financial instruments | Fair value of financial instruments ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 — inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments, including cash, restricted cash, accounts receivable, prepayments and other current assets, due from related parties, accounts payable, due to a related party, short-term bank loans, salary and welfare payables, accrued expenses and other current liabilities, current operating lease liabilities and taxes payable, approximates their recorded values due to their short-term maturities. The carrying value of long-term lease liabilities approximated its fair value as of December 31, 2022 and 2021 as the interest rates applied reflect the current market yield for comparable financial instruments. |
Notes receivable | Notes receivable Notes receivable represents trade accounts receivable due from various customers where the customers’ banks have guaranteed the payments. The notes are non-interest bearing and normally paid within three to twelve months. The Company has the ability to submit request for payment to the customer’s bank earlier than the scheduled payment date but will incur an interest charge and a processing fee. As of December 31, 2022 and 2021, no notes were pledged . |
Accounts receivable, net | Accounts receivable, net Accounts receivable represents the Company’s right to consideration in exchange for goods and services that the Company has transferred to the customer before payment is due. Accounts receivable is stated at the historical carrying amount, net of an estimated allowance for uncollectible accounts. The Company reviews on a periodic basis for doubtful accounts for the outstanding trade receivable balances based on historical collection trends, aging of receivables and other information available. Additionally, the Company evaluates individual customer’s financial condition, credit history, and the current economic conditions to make specific bad debt provisions when it is considered necessary, based on (i) the Company’s specific assessment of the collectability of all significant accounts; and (ii) any specific knowledge we have acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. The allowance for doubtful accounts was approximately $3.1 million and $2.4 million as of December 31, 2022 and 2021, respectively. |
Prepayments and other assets, net | Prepayments and other assets, net Prepayment and other assets primarily consist of VAT recoverable, advances to vendors for purchasing goods, long-lived assets or services that have not been received or provided, advances to employees, security deposits made to customers and advances to employees. Prepayment and other assets are classified as either current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance becomes doubtful. The Company uses the aging method to estimate the allowance for uncollectible balances. The allowance is also based on management’s best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management’s estimate of credit worthiness and the economic environment. The provisions for prepayments and other assets were approximately $0.5 million and $0.4 million as of December 31, 2022 and 2021, respectively. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the following estimated useful lives, taking into account any estimated residual value. Useful Life Building 10-40 years Office equipment 5-10 years Machinery and tools 5 years Vehicles 5-7 years Leasehold improvements Lesser of the lease term or the estimated useful lives of the assets The Company constructs certain of its property and equipment. In addition to costs under the construction contracts, external costs that are directly related to the construction and acquisition of such property and equipment are capitalized. Depreciation is recorded at the time assets are ready for their intended use. Such properties are classified to the appropriate categories of property and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. The cost and related accumulated depreciation and amortization of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. |
Intangible assets, net | Intangible assets, net Intangible assets consist primarily of land use rights and licensed software acquired, which are stated at cost less accumulated amortization and impairment, if any. Intangible assets are amortized using the straight-line method over the estimated useful lives, which are generally 5 to 50 years or based on the contract terms. The estimated useful lives of amortized intangible assets are reassessed if circumstances occur that indicate the original estimated useful lives have changed. The estimated useful lives are as follows: Useful life Land use right 32 - 50 years Licensed software 5 years |
Impairment of long-lived assets | Impairment of long-lived assets The Company evaluates its long-lived assets, including property and equipment and intangibles with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Company evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. The adjusted carrying amount of the assets become new cost basis and are depreciated over the assets’ remaining useful lives. Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Given no events or changes in circumstances indicating the carrying amount of long-lived assets may not be recovered through the related future net cash flows, the Company did not recognize any impairment loss on long-lived assets for the years ended December 31, 2022, 2021 and 2020. |
Long-term investments | Long-term investments Long-term investments are primarily consisted of equity investments in privately held entities accounted for using the measurement alternative and equity investments accounted for using the equity method. On January 1, 2019, the Company adopted ASU 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. According to the guidance, the Company started to record equity investments at fair value, with gains and losses recorded through net earnings. And the Company elected to measure certain equity investments without readily determinable fair value at cost, less impairments, plus or minus observable price changes and assess for impairment quarterly. |
Equity investments accounted for using the equity method | Equity investments accounted for using the equity method The Company accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control, using the equity method. The Company adjusts the carrying amount of the investment and recognizes investment income or loss for its share of the earnings or loss of the investee after the date of investment. The Company assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entity, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investments in a privately held entity, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. |
Deferred issuance costs | Deferred issuance costs Pursuant to ASC 340-10-S99-1, offering costs directly attributable to an offering of equity securities are deferred and would be charged against the gross proceeds of the offering as a reduction of additional paid-in capital. These costs include legal fees related to the registration drafting and counsel, consulting fees related to the registration preparation, SEC filing and print related costs, exchange listing costs, and road show related costs. |
Notes payable | Notes payable Notes payable represents trade accounts payable due to various suppliers where the Company’s banks have guaranteed the payment. The notes are non-interest bearing and normally paid within three to twelve months. The Company shall keep sufficient cash in designated bank accounts or notes receivable pledged to the bank as security for payment processing. |
Revenue recognition | Revenue recognition The Company adopted ASC Topic 606, Revenue from Contracts with Customers, effective as of January 1, 2019. Accordingly, the audited consolidated financial statements for the years ended December 31, 2022, 2021 and 2020 are presented under ASC 606. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is the transaction price the Company expects to be entitled to in exchange for the promised services in a contract in the ordinary course of the Company’s activities and is recorded net of value-added tax (“VAT”). To achieve that core principle, the Company applies the following steps: Step 1: Identify the contract (s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation The Company generates revenues from providing transportation services and warehouse storage and management services. No practical expedients were used when adoption ASC 606. Revenue recognition policies for each type of revenue stream are as follow: Transportation services The Company derives its transportation service revenue by providing logistic services based on customers’ order. The Transportation service is considered a performance obligation as the customer can only obtain benefits when the goods are delivered to the destination. The transaction price is predetermined according to the distance of the transportation as well as the volume of the goods. Generally, the credit term is within two months. There is no other obligation in our contracts, such as return, refund or warranties. Revenue is recognized at the point in time when delivery of goods is made and customer has accepted delivery. Warehouse storage and storage management services The Company derives revenue from the warehouse storage and storage management services provided to third-party companies, including handling services, security and other services. The promised services in each warehouse storage and storage management services contract are accounted as a single performance obligation, as the promised services in a contract are not distinct and are considered as a significant integrated service. The consideration is predetermined in the contract according to the unit price, space and term as well as the services used with no other obligations such as return, refund or warranties. No variable considerations exist such as discounts, rebates, refunds, credits, price concession, incentive performance bonuses or penalties. Pursuant to the service agreement, the Company provides the clients with warehouse storage and management services during the service period. Service fees for which are paid by such customers on a monthly basis. The revenue is recognized on a straight-line basis over the period of the warehouse storage and management service term, as customers simultaneously receive and consume the benefits of these services throughout the service period. Principal and Agent Considerations In the Company’s transportation business, the Company utilizes independent contractors and third-party carriers in the performances of some transportation services as and when needed. GAAP requires us to evaluate, using a control model, whether the Company itself promises to provide services to the customers (as a principal) or to arrange for services to be provided by another party (as an agent). Based on the Company’s evaluation using a control model, the Company determined that in all of its major business activities, it serves as a principal rather than an agent within their revenue arrangements. Revenue and the associated purchased transportation costs are both reported on a gross basis within the consolidated statements of income and comprehensive income. Contract costs Contract costs include contract acquisition costs and contract fulfillment costs which are all recorded within prepayments, deposits, and other assets in the consolidated balance sheets and unaudited condensed consolidated balance sheets. Contract acquisition costs consist of incremental costs incurred by the Company to originate contracts with customers. Contract acquisition costs, which generally include costs that are only incurred as a result of obtaining a contract, are capitalized when the incremental costs are expected to be recovered over the contract period. All other costs incurred regardless of obtaining a contract are expensed as incurred. Contract acquisition costs are amortized over the period the costs are expected to contribute directly or indirectly to future cash flows, which is generally over the contract term, on a basis consistent with the transfer of goods or services to the customer to which the costs relate. Contract fulfillments costs consist of costs incurred by the Company to fulfill a contract with a customer and are capitalized when the costs generate or enhance resources that will be used in satisfying future performance obligations of the contract and the costs are expected to be recovered. Capitalized contract fulfillment costs generally include contracted services, direct labor, materials, and allocable overhead directly related to resources required to fulfill the contract. Contract fulfillment costs are recognized in cost of revenue during the period that the related costs are expected to contribute directly or indirectly to future cash flows, which is generally over the contract term, on a basis consistent with the transfer of goods or services to the customer to which the costs are related. There were no contract acquisition costs and fulfillment costs as of December 31, 2022 and 2021. Contract assets A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before a payment is due, a contract asset is recognized for the earned consideration that is conditional. Contract assets are subject to impairment assessment. Contract liabilities A contract liability is recognized when a payment is received or a payment is due (whichever is earlier) from a customer before the Company transfers the related services. Contract liabilities are recognized as revenue when the Company performs under the contract. Revenue recognized that was included in contract liabilities at the beginning of the period was approximately $0.7 million, $2.5 million and $0.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022 and 2021, contract liabilities amounted to approximately $1.1 million and $1.0 million, respectively, were included at “accrued expenses and other current liabilities.” Disaggregated information of revenues by services: Years Ended December 31, 2022 2021 2020 Revenues: Transportation $ 346,039 $ 327,848 $ 273,685 Warehouse storage and storage management service 20,322 16,885 12,364 Others 3,964 1,966 1,415 Total revenues $ 370,325 $ 346,699 $ 287,464 As of December 31, 2022 and 2021, the Company had outstanding contracts for providing transportation and warehouse management services amounting to approximately $1.0 million and $1.5 million, all of which is expected to be completed within 12 months from December 31, 2022 and 2021, respectively. The Company’s operations are primarily based in the PRC, where the Company derived a substantial portion of revenues. Disaggregated information of revenues by geographic locations are as follows: Years Ended December 31 2022 2021 2020 Fujian $218,523 $197,647 $154,155 Guangdong 17,848 22,447 28,622 Beijing 36,958 36,365 24,362 Shandong 14,159 12,069 12,858 Liaoning 7,815 7,698 10,507 Jiangsu 6,556 7,926 9,039 Zhejiang 15,782 11,466 8,681 Others 52,884 51,081 39,240 Total $ 370,325 $ 346,699 $ 287,464 |
Government Subsidies [Policy Text Block] | Government Subsidies The Company’s PRC based subsidiaries received government subsidies from certain local governments. The Company’s government subsidies consisted of specific subsidies and other subsidies. Specific subsidies are subsidies that the local government has provided for a specific purpose, such as truck station subsidies. Other subsidies are the subsidies that the local government has not specified its purpose for and are not tied to future trends or performance of the Company; receipt of such subsidy income is not contingent upon any further actions or performance of the Company and the amounts do not have to be refunded under any circumstances. The Company recorded specific subsidies as accrued expenses and other current liabilities when received. For specific subsidies, they are recognized as other income on a straight-line method within the useful life of relevant assets. Other subsidies are recognized as other income which is included in the consolidated statements of income upon receipt as further performance by the Company is not required. The government subsidies were $0.8 million, $0.6 million and $2.2 million for the years ended December 31, 2022, 2021 and 2020. |
Advertising expenses | Advertising expenses Advertising expenditures are expensed as incurred and such expenses were included as part of selling and marketing expenses. For the years ended December 31, 2022, 2021 and 2020, the advertising expenses amounted to approximately $0.05 million, $0.08 million and $0.06 million, respectively. |
Employee defined contribution plan | Employee defined contribution plan Full-time employees of the Company in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to them. Chinese labor regulations require that the Company make contributions to the government for these benefits based on government prescribed percentage of the employee’s salaries. The Company has no legal obligation for the benefits beyond the contributions. The total amount was expensed as incurred. For the years ended December 31, 2022, 2021 and 2020, employee welfare contribution expenses amounted to approximately $1.3 million, $2.4 million and $2.9 million, respectively. |
Leases | Leases The Company has elected the package of practical expedients permitted which allows the Company not to reassess the following at adoption date: (i) whether any expired or existing contracts are or contains a lease, (ii) the lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases (i.e. whether those costs qualify for capitalization under ASU 2016-02). The Company also elected the short-term lease exemption for certain classes of underlying assets including office space, warehouses and equipment, with a lease term of 12 months or less. The Company determines whether an arrangement is or contain a lease at inception. A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liability, current, and operating lease liability, non-current in the Company’s consolidated balance sheets. Please refer to Note 12 for the disclosures regarding the Company’s method of adoption of ASC 842 and the impacts of adoption on its financial position, results of operations and cash flows. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. The operating lease ROU assets and lease liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The operating lease ROU assets also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease. Renewal options are considered within the ROU assets and lease liabilities when it is reasonably certain that the Company will exercise that option. Lease expenses for lease payments are recognized on a straight-line basis over the lease term. For operating leases with a term of one year or less, the Company has elected not to recognize a lease liability or ROU asset on its consolidated balance sheet. Instead, it recognizes the lease payments as expenses on a straight-line basis over the lease term. Short-term lease costs are immaterial to its consolidated statements of operations and cash flows. The Company has operating lease agreements with insignificant non-lease components and have elected the practical expedient to combine and account for lease and non-lease components as a single lease component. The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and include the associated operating lease payments in the undiscounted future pre-tax cash flows. Upon the adoption of the new lease standard on January 1, 2019, the Company recognized respectively, ROU assets and operating lease liabilities of approximately $28 million, in the consolidated balance sheets. There was no impact to retained earnings at adoption. |
Value added tax (“VAT”) | Value added tax (“VAT”) Revenue represents the invoiced value of goods and service, net of VAT. The VAT is based on gross sales price and VAT rates range up to 13%, depending on the type of products sold or services provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in taxes payable. All of the VAT returns filed by the Company’s subsidiaries in PRC remain subject to examination by the tax authorities for five years from the date of filing. |
Income taxes | Income taxes The Company follows the liability method of accounting for income taxes in accordance with ASC 740 (“ASC 740”), Income Taxes. The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2022, 2021 and 2020. All of the tax returns of the Company’s subsidiaries in PRC remain subject to examination by the tax authorities for five years from the date of filing. |
Statutory reserves | Statutory reserves The Company’s PRC subsidiaries and the VIE are required to allocate at least 10% of their after-tax profit to the general reserve in accordance with the PRC accounting standards and regulations. The allocation to the general reserve will cease if such reserve has reached to 50% of the registered capital of respective company. Appropriations to discretionary surplus reserve are at the discretion of the board of directors of the VIE. These reserves can only be used for specific purposes and are not transferable to the Company in form of loans, advances, or cash dividends. There is no such regulation of providing statutory reserve in Hong Kong. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. |
Earnings per share | Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share.” ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per-share basis of the potential Ordinary Shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential Ordinary Shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. The rights, including the liquidation and dividend rights, of the holders of the Company’s Class A and Class B Ordinary Shares are identical, except with respect to voting and conversion rights. Each Class A Ordinary Share is entitled to one vote; and each Class B Ordinary Share is entitled to ten votes and is convertible into one Class A Ordinary Share at any time by the holder thereof. Class A Ordinary Shares are not convertible into Class B Ordinary Shares under any circumstances. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. For the years ended December 31, 2022, 2021 and 2020, the net earnings per share amounts are the same for Class A and Class B Ordinary Shares because the holders of each class are entitled to equal per share dividends or distributions in liquidation. |
Risks and Concentration | Risks and Concentration a) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s interest rate risk arises primarily from short-term borrowings. Borrowings issued at variable rates and fixed rates expose the Company to cash flow interest rate risk and fair value interest rate risk respectively. b) Concentration of credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of December 31, 2022 and 2021, approximately $23.4 million and $18.9 million were deposited with financial institutions located in the PRC, respectively, where there is a RMB 500, 000 The Company is also exposed to risk from its accounts receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment. A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at the exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to process the remittance. The Company’s functional currency is the RMB, and its consolidated financial statements are presented in U.S. dollars. The RMB depreciated by 9.24% in the year ended December 31, 2022. The RMB appreciated by 2.29% in the year ended December 31, 2021 from December 31, 2020 to December 31, 2021. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. The change in the value of the RMB relative to the U.S. dollar may affect its financial results reported in the U.S. dollar terms without giving effect to any underlying changes in its business or results of operations. Currently, the Company’s assets, liabilities, revenues and costs are denominated in RMB. To the extent that the Company needs to convert U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against U.S. dollar would have an adverse effect on the RMB amount the Company would receive from the conversion. Conversely, if the Company decides to convert RMB into U.S. dollar for the purpose of making payments for dividends, strategic acquisition or investments or other business purposes, appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Company. c) Concentration of customers and suppliers Substantially all revenue was derived from customers located in China. There are no customers from whom revenue individually represent greater than 10% of the total revenue of the Company in any of the periods presented. For the year ended December 31, 2022, Fujian Jinwang Yuntong Logistics Technology Co., Ltd. contributed approximately 23.5% of total cost of revenue of the Company. For the year ended December 31, 2021, Anhui Luge Transportation Co., Ltd. contributed approximately 27.8% of total cost of revenue of the Company. For the year ended December 31, 2020, Hubei Luge Logistics Co., Ltd. and Anhui Luge Transportation Co., Ltd. contributed approximately 19.8% and 12.4% of total cost of revenue of the Company, respectively. As of December 31, 2022 and 2021, no customers accounted more than 10% of the account receivables. As of December 31, 2022, Fujian Jinwang Yuntong Logistics Technology Co., Ltd., contributed approximately 13.4% of total account payable balances. As of December 31, 2021, Anhui Luge Transportation Co., Ltd. contributed approximately 14.4% of total account payable balances. d) VIE risk Under the Contractual Agreements with the consolidated VIE, the Company has the power to direct activities of the consolidated VIE and VIE’s subsidiaries through the Company’s relevant PRC subsidiaries, and can have assets transferred freely out of the consolidated VIE and VIE’s subsidiaries without restrictions. Therefore, the Company considers that there is no asset of the consolidated VIE that can only be used to settle obligations of the respective consolidated VIE, except for the registered capital of the consolidated VIE amounting to approximately $27.2 million as of December 31, 2022 and 2021. Since the consolidated VIE and VIE’s subsidiaries are incorporated as limited liability companies under the PRC Law, creditors of the consolidated VIE and VIE’s subsidiaries do not have recourse to the general credit of the Company. The Company believes that the Company’s relevant PRC subsidiaries’ Contractual Arrangements with the consolidated VIE and the Equity Shareholders are in compliance with PRC laws and regulations, as applicable, and are legally binding and enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these Contractual Arrangements. In addition, if the current structure or any of the Contractual Arrangements were found to be in violation of any existing or future PRC law, the Company may be subject to penalties, which may include, but not limited to, cancellation or revocation of the Company’s business and operating licenses and being required to restructure the Company’s operations or terminate the Company’s operating activities. The imposition of any of these or other penalties may result in a material and adverse effect on the Company’s ability to conduct its operations. In such case, the Company may not be able to operate or control the VIE, which may result in deconsolidation of the VIE. |
Contingencies | Contingencies From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company’s management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would have a material adverse impact on the Company’s consolidated financial position, results of operations and cash flows. |
Related parties | Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence, such as a family member or relative, shareholder, or a related corporation. |
Segment reporting | Segment reporting The Company’s chief operating decision-maker (“CODM”) has been identified as its Chief Executive Officer, who reviews the consolidated results when making decisions about allocating resources and assessing the performance of the Company as a whole and hence, the Company has only one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. The Company’s long-lived assets are all located in the PRC and substantially all of the Company’s revenues are derived from the PRC. Therefore, no geographical segments are presented. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”), the Company meets the definition of an emerging growth company, or EGC, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies. In June 2016, the FASB amended guidance related to the impairment of financial instruments as part of ASU2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which will be effective January 1, 2020. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, which clarified that receivables from operating leases are not within the scope of Topic 326 and instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842. On May 15, 2019, the FASB issued ASU 2019-05, which provides transition relief for entities adopting the Board’s credit losses standard, ASU 2016-13. Specifically, ASU 2019-05 amends ASU 2016-13 to allow companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of the credit losses guidance in ASC 326-20, (3) are eligible for the fair value option under ASC 825-10, and (4) are not held-to-maturity debt securities. For entities that have adopted ASU 2016-13, the amendments in ASU 2019-05 are effective for fiscal years beginning after December 15, 2019, including interim periods therein. An entity may early adopt the ASU in any interim period after its issuance if the entity has adopted ASU 2016-13. For all other entities, the effective date will be the same as the effective date of ASU 2016-13. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” ASU 2019-11 is an accounting pronouncement that amends ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The ASU 2019-11 amendment provides clarity and improves the codification to ASU 2016-03. The pronouncement would be effective concurrently with the adoption of ASU 2016-03. The pronouncement is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. In February 2020, the FASB issued ASU No. 2020-02, which provides clarifying guidance and minor updates to ASU No. 2016-13 – Financial Instruments – Credit Loss (Topic 326) (“ASU 2016-13”) and related to ASU No. 2016-02 - Leases (Topic 842). ASU 2020-02 amends the effective date of ASU 2016-13, such that ASU 2016-13 and its amendments will be effective for the Company for interim and annual periods in fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes. The guidance in this ASU eliminates certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. For public entities, the amendments in this Update are effective for fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendment is permitted. The Company adopt this guidance effective January 1, 2022. The adoption of the new guidance did not have a significant impact on its consolidated financial statements. In October 2020, the FASB issued ASU 2020-10, Codification Improvements – Disclosures (“ASU 2020-10”) to align with the SEC’s regulations. This ASU improves consistency by amending the codification to include all disclosure guidance in the appropriate disclosure sections and clarifies application of various provisions in the Codification by amending and adding new headings, cross referencing to other guidance, and refining or correcting terminology. The Company adopted ASU 2020-10 effective January 1, 2022. The adoption of the new guidance did not have a significant impact on its consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) In October 2021, the FASB issued ASU No. 2021-08, , “'Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2023 and are applied prospectively to business combinations that occur after the effective date. The Company does not expect the adoption of ASU 2021-04 will have a material effect on the consolidated financial statements. In November 2021, the FASB issued Accounting Standards Update No 2021-10, Government Assistance (Topic 832) — Disclosures by Business Entities about Government Assistance (“ASU 2021-10”). ASU 2021-10 requires additional disclosures regarding the nature of government assistance, the related accounting policy used to account for assistance, the affected line items and applicable amounts within the consolidated financial position and results of operations, and significant terms and conditions related to the assistance. Government assistance within the scope of ASC 832 includes assistance that is administered by domestic, foreign, local, state, national governments, as well as departments, independent agencies and intergovernmental organizations. The updated guidance increases transparency of government assistance including, 1) the type of assistance, 2) the entity’s accounting for assistance, and 3) the effect of assistance on the entity’s financial statements. The new standard is effective for fiscal years beginning after December 15, 2021. The Company adopted ASU 2021-10 effective January 1, 2022. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have a material impact on the consolidated financial position, statements of operations and cash flows. |
Organization and Nature of Op_2
Organization and Nature of Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization and Nature of Operations [Abstract] | |
Schedule of consolidated financial statements | Name of subsidiaries Place of Date of Percentage Principal activities Shengfeng Holding Limited Hong Kong August 18, 2020 100 % Investment holding of Tianyu Fujian Tianyu Shengfeng Logistics Co., Ltd. (“Tianyu”) Fujian, the PRC December 16, 2020 100 % Investment holding of Shengfeng VIE Shengfeng Logistics Group Co., Ltd. (“Shengfeng VIE” or “ ”) 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 Fuzhou Shengfeng New Material Technology Co., Ltd. (a) Fujian, the PRC August 13, 2019 0 % Packaging material manufacturing Name of subsidiaries Place of Date of Percentage 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. (b) 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 Diaobingshan Hengde Logistics Co., Ltd. (c) Liaoning, the PRC April 23, 2018 0 % 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. (d) Fujian, the PRC November 12, 2018 51 % Transportation and warehouse storage management service Fujian Fengche Logistics Co., Ltd. Fujian, the PRC October 28, 2020 100 % Transportation service Fujian Hangfeng Logistics Technology Co., Ltd. (e) Fujian, the PRC October 13, 2020 0 % Online 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 service Shengfeng Logistics Group (Ningde) Supply Chain Management Co., Ltd. (f) Fujian, the PRC September 23, 2022 100 % Supply chain service Yichun Shengfeng Logistics Co., Ltd. Jiangxi, the PRC December 1, 2022 100 % Transportation and warehouse storage management service (a) On July 14, 2021, Shengfeng Logistics entered into a share transfer agreement with Dongguan Suxing New Material Co., Ltd (“Dongguan Suxing”), a related party, to transfer its 51% equity interest in Fuzhou Shengfeng New Material Technology Co., Ltd. (“New Material Technology”) to Dongguan Suxing for a consideration of $468,973 (RMB3,060,000). The aforementioned transaction was completed during the year ended December 31, 2021. The Company has continued to operate the transportation business through the VIE’s other subsidiaries. Since New Material Technology’s operating revenue was less than 1% of the Company’s consolidated revenue, the transfer did not constitute a strategic shift that would have a major effect on the Company’s operations and financial results. The results of operations for New Material Technology were not reported as discontinued operations in the consolidated financial statements. (b) On July 8, 2021, Suzhou Shengfeng Supply Chain Management Co, Ltd. became a wholly owned subsidiary of Shengfeng Logistics. (c) On April 20, 2021, Shengfeng Logistics entered into a share transfer agreement with Mr. Sun Mingyang, an unrelated third party, among others, to transfer its 51% equity interest in Diaobingshan Hengde Logistics Co., Ltd. to Mr. Sun Mingyang for a consideration of approximately $0.3 million. The aforementioned transaction was completed during the year ended December 31, 2021. The Company has continued to operate the transportation business through the VIE’s other subsidiaries. Since Diaobingshan Hengde Logistics Co., Ltd.’s operating revenue was less than 1% of the Company’s consolidated revenue, the transfer did not constitute a strategic shift that would have a major effect on the Company’s operations and financial results. The results of operations for Diaobingshan Hengde Logistics Co., Ltd. were not reported as discontinued operations in the consolidated financial statements. (d) 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. According to the share transfer agreement, instead of paying any cash consideration to Shengfeng Logistics, Fuzhou Puhui was required to make a capital contribution to fulfill the required registered capital (approximately $14.4 million or RMB100 million) based on its 49% ownership interest (approximately $7.0 million or RMB49 million). The aforementioned transaction has been completed. After the transaction, the Company owned a 51% equity interest in Ningde Shengfeng. (e) On March 16, 2022, Fujian Hangfeng Logistics Technology Co., Ltd. was deregistered, as it has not commenced business operations and the Company has cancelled the future plans for such entity. (f) 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 service in the future. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of consolidated financial statements | As of 2022 2021 Current assets $ 135,650 $ 121,698 Non-current assets 109,481 122,511 Total assets $ 245,131 $ 244,209 Current liabilities $ 130,196 $ 125,352 Non-current liabilities 19,377 22,959 Total liabilities $ 149,573 $ 148,311 Net assets $ 95,558 $ 95,898 |
Schedule of consolidated operations | Years Ended December 31, 2022 2021 2020 Total revenues $ 370,325 $ 346,699 $ 287,464 Cost of revenues $ (328,793 ) $ (305,354 ) $ (251,489 ) Income from operations $ 10,318 $ 8,587 $ 6,204 Net income $ 8,298 $ 6,644 $ 6,043 |
Schedule of property and equipment | Useful Life Building 10-40 years Office equipment 5-10 years Machinery and tools 5 years Vehicles 5-7 years Leasehold improvements Lesser of the lease term or the estimated useful lives of the assets |
Schedule of estimated useful lives | Useful life Land use right 32 - 50 years Licensed software 5 years |
Schedule of disaggregated information of revenues | Years Ended December 31, 2022 2021 2020 Revenues: Transportation $ 346,039 $ 327,848 $ 273,685 Warehouse storage and storage management service 20,322 16,885 12,364 Others 3,964 1,966 1,415 Total revenues $ 370,325 $ 346,699 $ 287,464 |
Schedule of PRC | Years Ended December 31 2022 2021 2020 Fujian $218,523 $197,647 $154,155 Guangdong 17,848 22,447 28,622 Beijing 36,958 36,365 24,362 Shandong 14,159 12,069 12,858 Liaoning 7,815 7,698 10,507 Jiangsu 6,556 7,926 9,039 Zhejiang 15,782 11,466 8,681 Others 52,884 51,081 39,240 Total $ 370,325 $ 346,699 $ 287,464 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable, Net [Abstract] | |
Schedule of accounts receivable, net | As of As of Accounts receivable $ 92,225 $ 83,019 Less: Allowance for doubtful accounts (3,115 ) (2,398 ) Total $ 89,110 $ 80,621 |
Schedule of movement of allowance of doubtful accounts | Year Ended Year Ended Year Ended Beginning balance $ 2,398 $ 2,537 $ 2,162 Provision for doubtful accounts 1,130 428 399 Written-off (178 ) (624 ) (185 ) Exchange rate effect (235 ) 57 161 Ending balance $ 3,115 $ 2,398 $ 2,537 |
Prepayments and Other Assets,_2
Prepayments and Other Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepayments and Other Assets, Net [Abstract] | |
Schedule of prepayments and other assets, net | As of As of Deposits (a) $ 9,149 $ 8,414 Prepayments for goods and services 4,004 2,470 VAT recoverable (b) 3,843 5,081 Prepayments for long-lived assets (c) 15,789 15,998 Advances to employees 63 228 Others 538 924 Prepayments and other assets 33,386 33,115 Less: Provisions for prepayments and other assets (454 ) (439 ) Prepayments and other assets, net 32,932 32,676 Less: Prepayments and other current assets, net (18,292 ) (17,934 ) Other non-current assets $ 14,640 $ 14,742 (a) Deposits represent the refundable deposits to the lessors for the leased warehouses and office space. (b) VAT recoverable represents the balances that the Company can utilize to deduct its value-added tax liabilities within the next 12 months. (c) Prepayments for long-lived assets represent mainly prepayments for constructions of logistic stations. |
Schedule of movement of allowance of doubtful accounts | Year Ended Year Ended Year Ended Beginning balance $ 439 $ 591 $ 382 Provisions for prepayments and other assets 54 - 173 Written-off - (164 ) - Exchange rate effect (39 ) 12 36 Ending balance $ 454 $ 439 $ 591 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | As of As of Buildings $ 24,150 $ 26,411 Office equipment 3,230 3,401 Machinery and tools 1,879 1,886 Vehicles 37,841 43,330 Leasehold improvements 4,964 6,310 Constructions in progress 2,215 752 Subtotal 74,279 82,090 Less: accumulated depreciation and amortization (34,014 ) (34,809 ) Property and equipment, net $ 40,265 $ 47,281 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepayments and Other Assets, Net [Abstract] | |
Schedule of intangible assets with definite useful lives primarily consisted of land use rights an licensed softwareche | As of As of Land use rights $ 8,011 $ 8,751 Licensed software 2,133 1,973 Subtotal 10,144 10,724 Less: accumulated amortization (3,433 ) (3,197 ) Intangible assets, net $ 6,711 $ 7,527 |
Schedule of future amortization for the intangible assets | Twelve months ending December 31, Estimated 2023 $ 547 2024 547 2025 327 2026 321 2027 289 Thereafter 4,680 Total $ 6,711 |
Long-term investments (Tables)
Long-term investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-term investments [Abstract] | |
Schedule of long-term investments | As of As of Equity investments accounted for using the equity method $ 2,040 $ 2,142 |
Schedule of movement of equity method investment | Year Ended Year Ended Year Ended 2020 Beginning balance $ 2,142 $ 2,024 $ 1,839 Share of income in equity method investee 82 70 55 Exchange rate effect (184 ) 48 130 Ending balance $ 2,040 $ 2,142 $ 2,024 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of related parties and their relationships | Name of related parties Relationship with the Company Fujian Bafang An equity investee of the Company Fuzhou Tianyu Shengfeng Industrial Co., Ltd (“Fuzhou Tianyu”) A company controlled by Yongteng Liu, who is the brother of Yongxu Liu, CEO and Chairman of the Company Fuzhou Tianyu Shengfeng Property Management Co., Ltd (“Fuzhou Tianyu Management”) A company under the control of a shareholder Fuzhou Tianyu Yuanmei Catering Co., Ltd (“Fuzhou Tianyu Catering”) A company under the control of a shareholder Beijing Union Logistics Co., Ltd (“Beijing Banglian”) (1) A company under the control of a shareholder Fujian Desheng Logistics Co., Ltd (“Fujian Desheng”) A company under the control of a shareholder Dongguan Suxing New Material Co., Ltd (“Suxing”) (2) A company under the control of a non-controlling shareholder Hainan Tianyi Logistics Distribution Co., Ltd (“Hainan Tianyi”) (3) An equity investee of the Company Yongteng Liu CEO’s brother (1) In January 2022, the Company’s shareholder sold the equity interest in Beijing Banglian. (2) On July 14, 2021, Shengfeng Logistics entered into a share transfer agreement with Dongguan Suxing New Material Co., Ltd (“Dongguan Suxing”), a related party, to transfer its 51% equity interest in Fuzhou Shengfeng New Material Technology Co., Ltd. (“New Material Technology”) to Dongguan Suxing (Note 1). After the transaction, Suxing became a non-related party to the Company. (3) On September 15, 2021, the Company signed a share purchase agreement with a third party. According to such agreement, the Company sold its 5% equity interests in Hainan Tianyi to such third party. After the transaction, Hainan Tianyi became a non-related party to the Company. |
Schedule of transactions with related parties | Year ended Year ended Year ended Transportation services to Fujian Bafang $ 18 $ - $ 7 Transportation services to Fujian Desheng - 349 - Sales of material to Suxing - - 49 Total $ 18 $ 349 $ 56 Year ended Year ended Year ended Transportation services from Beijing Banglian $ - $ 2,265 $ 2,750 Transportation services from Hainan Tianyi $ - $ 1,207 $ 1,109 Transportation services from Fujian Bafang $ 1,196 $ 157 $ 144 Purchase raw materials from Suxing $ - $ 577 $ 781 Lease services from Fuzhou Tianyu $ 305 $ 358 $ 296 Lease services from Fuzhou Tianyu Management $ 35 $ - $ - |
Schedule of balances with related parties | As of As of Due from related parties Fuzhou Tianyu $ 42 $ 46 Beijing Banglian - 4 Total $ 42 $ 50 As of As of Due to related parties Fujian Bafang (a) $ 1,694 $ 1,574 Fuzhou Tianyu 84 29 Beijing Banglian - 246 Fuzhou Tianyu Management 36 24 Hainan Tianyi - 4 Yongteng Liu 600 - Total $ 2,414 $ 1,877 (a) On December 10, 2007, the Company entered into an interest-free loan agreement with Fujian Bafang for a principal amount of approximately $1.4 million (RMB 9.6 million). Such loan is due on demand. |
Short-Term Bank Loans (Tables)
Short-Term Bank Loans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-term investments [Abstract] | |
Schedule of short-term bank loans from commercial banks | As of As of China Minsheng Bank Fuzhou Branch $ 10,769 $ 11,765 Bank of China Fuzhou Jin’an Branch 11,487 10,509 China Merchant Bank Fuzhou Branch 10,769 9,411 Xiamen International Bank Co., Ltd. Fuzhou Branch of 7,179 7,842 Haixia Bank of Fujian Fuzhou Jin’an Branch 1,436 784 Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch 1,436 1,568 Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch 1,436 1,568 Industrial Bank Fuzhou Huqian Sub Branch 861 941 Industrial Bank Fuzhou Branch 1,421 1,568 China Everbright Bank Co., Ltd Fuzhou Tongpan Branch 861 - Total $ 47,655 $ 45,956 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Schedule of accrued expenses and other current liabilities | As of As of Rental and freight logistics deposits received $ 3,498 $ 3,319 Payables for long-term assets 1,360 2,384 Government subsidies 1,467 1,259 Contract liabilities 1,142 1,012 Cash collected on behalf of the customers (a) 181 262 Service payables 12 122 Contingent liability 258 434 Others 503 536 Total $ 8,421 $ 9,328 Less: accrued expenses and other current liabilities (6,551 ) (7,854 ) Other non-current liabilities $ 1,870 $ 1,474 (a) The Company collects the goods considerations from the recipients after they deliver the goods to the determined locations on behalf of the customers, and will pay to the customers on a regular basis. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of associated financial statement | As of As of Assets Operating lease right-of-use assets, net $ 27,880 $ 29,910 Liabilities Operating lease liabilities, current $ 9,634 $ 8,126 Operating lease liabilities, non-current $ 17,507 $ 21,485 Weighted average remaining lease term (in years) 5.1 5.6 Weighted average discount rate (%) 5.78 5.80 |
Schedule of operating lease activities | Year ended Year ended Year ended Operating lease right-of-use assets obtained in exchange for lease liabilities $ 9,674 $ 12,247 $ 7,526 Operating lease expense Amortization of right-of-use assets 9,157 7,963 7,248 Interest of lease liabilities 1,656 1,585 1,339 Total $ 10,813 $ 9,548 $ 8,587 |
Schedule of maturities of lease liabilities | Lease Twelve months ending December 31, 2023 $ 9,924 2024 7,017 2025 4,433 2026 3,055 2027 2,071 Thereafter 4,706 Total lease payments 31,206 Less: imputed interest (4,065 ) Total $ 27,141 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income taxes | Year ended Year ended Year ended Non-PRC $ (472 ) $ - $ - PRC 9,897 8,161 7,613 Total $ 9,425 $ 8,161 $ 7,613 |
Schedule of the income tax provision | Year ended Year ended Year ended Current $ 361 $ 21 $ 268 Deferred 1,238 1,496 1,302 Total $ 1,599 $ 1,517 $ 1,570 |
Schedule of statutory rates to the Company’s effective tax rate | Year ended Year ended Year ended PRC statutory income tax rate 25.0 % 25.0 % 25.0 % Effect of preferential tax rates (1) (2.8 )% (3.8 )% (2.8 )% Eligible additional deduction (3.3 )% (3.2 )% (2.7 )% Impact of different tax rates in other jurisdictions 1.3 % - % - % Non-taxable and exemptions (3.3 )% - % - % Permanent differences (2) 0.1 % 0.6 % 1.1 % Effective income tax rate 17.0 % 18.6 % 20.6 % (1) Preferential tax rates for small and micro enterprises and high-tech entities. (2) Permanent differences mainly consisted of non-deductible meal and entertainment fees in PRC tax returns. |
Schedule of financial accounting basis and tax basis of assets and liabilities | As of As of Deferred tax assets: Net operating losses carryforward $ 2,300 $ 4,104 Allowance for doubtful accounts 874 699 Deferred income (a) 279 315 Intangible assets (b) 134 106 Subtotal 3,587 5,224 Less: valuation allowance - - Deferred tax assets $ 3,587 $ 5,224 (a) Deferred income represents the assets related government subsidies, which will amortize on a straight-line basis within the useful life of related assets. The tax basis is recognized when the Company received the subsidies. (b) Intangible asset represents the amortization temporary difference of licensed software. Management uses 10 years useful life as the tax basis, which is different from the 5 years useful life in accounting basis. |
Schedule of tax payable consisted | As of As of Value-added tax payable $ 1,828 $ 2,523 Income tax payable 185 18 Other taxes payable 194 348 Total $ 2,207 $ 2,889 |
Unaudited Condensed Financial_2
Unaudited Condensed Financial Information of The Parent Company (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2022 | |
Unaudited Condensed Financial Information of The Parent Company (Tables) [Line Items] | |
Schedule of condensed balance sheets | December 31, December 31, 2022 2021 ASSETS Current assets Cash $ 47 $ - Total Current Assets 47 - Deferred issuance costs 81 - Investment in subsidiaries and VIEs (restricted) 91,695 91,593 Non-current assets 91,776 91,593 Total Assets $ 91,823 $ 91,593 Liabilities and Equity Current liabilities Due to a related party 600 - Total Current Liabilities 600 - Total liabilities 600 - Commitments and Contingencies Shareholders’ Equity Class A Ordinary share, $0.0001 par value, 400,000,000 shares authorized; 38,120,000 shares issued and outstanding as of December 31, 2022 and 2021 4 4 Class B Ordinary share, $0.0001 par value, 100,000,000 shares authorized; 41,880,000 shares issued and outstanding as of December 31, 2022 and 2021 4 4 Additional paid-in capital 79,549 75,575 Retained earnings 17,275 10,032 Accumulated other comprehensive income (loss) (5,609 ) 2,548 Total Shareholders’ Equity 91,223 91,593 Total Liabilities and Shareholders’ Equity $ 91,823 $ 91,593 |
Schedule of condensed statements of operations and comprehensive income (loss) | Years Ended December 31, 2022 2021 2020 Equity in earnings of subsidiaries $ 8,259 $ 6,898 $ 6,091 General and administrative expenses (472 ) - - NET INCOME 7,787 6,898 6,091 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment (8,157 ) 2,072 5,362 COMPREHENSIVE INCOME (LOSS) $ (370 ) $ 8,970 $ 11,453 |
Schedule of condensed statements of cash flow | Years Ended December 31, 2022 2021 2020 Cash flows from operating activities Net income $ 7,787 $ 6,898 $ 6,091 Adjustments to reconcile net income to net cash used in operating activities: Equity income of subsidiaries and VIEs (8,259 ) (6,898 ) (6,091 ) Net cash used in operating activities (472 ) - - Cash flows from investing activities - - - Cash flows from financing activities Due to related party 600 - - Deferred issuance costs (81 ) - - Net cash provided by operating activities 519 - - Net increase in cash and restricted cash 47 - - Cash and restricted cash, beginning of year $ - $ - $ - Cash and restricted cash, end of year $ 47 $ - $ - |
Organization and Nature of Op_3
Organization and Nature of Operations (Details) | 12 Months Ended | |||||||
Jul. 14, 2021 USD ($) | Jul. 14, 2021 CNY (¥) | Apr. 20, 2021 USD ($) | Jan. 07, 2021 | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Jan. 05, 2022 USD ($) | Jan. 05, 2022 CNY (¥) | |
Organization and Nature of Operations (Details) [Line Items] | ||||||||
Paid in capital | $ 27,170,000 | ¥ 189,600,000 | ||||||
Consideration amount | $ 468,973 | ¥ 3,060,000 | $ 300,000 | |||||
Operating revenue parentage | 1% | 1% | 1% | |||||
Capital contribution | $ 14,400,000 | ¥ 100,000,000 | ||||||
Ownership interest amount | $ 7,000,000 | ¥ 49,000,000 | ||||||
Effective service agreement | 20 years | 20 years | 20 years | |||||
After income tax percentage | 50% | 50% | ||||||
Voting rights proxy agreement | 20 years | |||||||
Dongguan Suxing [Member] | ||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||
Equity interest percentage | 51% | 51% | ||||||
Diaobingshan Hengde Logistics Co., Ltd. [Member] | ||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||
Equity interest percentage | 51% | |||||||
Ningde Shengfeng.[Member] | ||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||
Equity interest percentage | 51% | 51% | ||||||
Fuzhou Puhui Technology Co., Ltd [Member] | ||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||
Ownership interest | 49% | 49% | ||||||
Ningde Shengfeng Logistics Co., Ltd. [Member] | ||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||
Equity interest percentage | 49% | 49% |
Organization and Nature of Op_4
Organization and Nature of Operations (Details) - Schedule of consolidated financial statements | 12 Months Ended | |
Dec. 31, 2022 | ||
Shengfeng Holding Limited [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Hong Kong | |
Date of incorporation or acquisition | Aug. 18, 2020 | |
Percentage of direct or indirect | 100% | |
Principal activities | Investment holding of Tianyu | |
Fujian Tianyu Shengfeng Logistics Co., Ltd. (“Tianyu”) [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Fujian, the PRC | |
Date of incorporation or acquisition | Dec. 16, 2020 | |
Percentage of direct or indirect | 100% | |
Principal activities | Investment holding of Shengfeng VIE | |
Shengfeng Logistics Group Co., Ltd. (“Shengfeng VIE”) [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Fujian, the PRC | |
Date of incorporation or acquisition | Dec. 07, 2001 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Fuqing Shengfeng Logistics Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Fujian, the PRC | |
Date of incorporation or acquisition | Apr. 15, 2011 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Xiamen Shengfeng Logistics Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Fujian, the PRC | |
Date of incorporation or acquisition | Dec. 22, 2011 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Guangdong Shengfeng Logistics Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Guangdong, the PRC | |
Date of incorporation or acquisition | Dec. 30, 2011 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Hainan Shengfeng Supply Chain Management Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Hainan, the PRC | |
Date of incorporation or acquisition | Aug. 18, 2020 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Beijing Tianyushengfeng E-commerce Technology Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Beijing, the PRC | |
Date of incorporation or acquisition | Jan. 09, 2004 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Beijing Shengfeng Supply Chain Management Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Beijing, the PRC | |
Date of incorporation or acquisition | Apr. 13, 2016 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Shengfeng Logistics (Guizhou) Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Guizhou, the PRC | |
Date of incorporation or acquisition | Aug. 15, 2017 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Shengfeng Logistics (Tianjin) Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Tianjin, the PRC | |
Date of incorporation or acquisition | Mar. 08, 2016 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Shengfeng Logistics (Shandong) Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Shandong, the PRC | |
Date of incorporation or acquisition | Mar. 15, 2016 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Shengfeng Logistics Hebei Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Hebei, the PRC | |
Date of incorporation or acquisition | Feb. 17, 2016 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Shengfeng Logistics (Henan) Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Henan, the PRC | |
Date of incorporation or acquisition | Mar. 28, 2016 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Shengfeng Logistics (Liaoning) Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Liaoning, the PRC | |
Date of incorporation or acquisition | Mar. 02, 2016 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Fuzhou Shengfeng New Material Technology Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Fujian, the PRC | [1] |
Date of incorporation or acquisition | Aug. 13, 2019 | [1] |
Percentage of direct or indirect | 0% | [1] |
Principal activities | Packaging material manufacturing | [1] |
Shengfeng Logistics (Yunnan) Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Yunnan, the PRC | |
Date of incorporation or acquisition | Jan. 25, 2016 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Shengfeng Logistics (Guangxi) Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Guangxi, the PRC | |
Date of incorporation or acquisition | Feb. 01, 2016 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Hubei Shengfeng Logistics Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Hubei, the PRC | |
Date of incorporation or acquisition | Dec. 15, 2010 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Shengfeng Logistics Group (Shanghai) Supply Chain Management Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Shanghai, the PRC | |
Date of incorporation or acquisition | Aug. 26, 2015 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Shanghai Shengxu Logistics Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Shanghai, the PRC | |
Date of incorporation or acquisition | Jun. 04, 2003 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Hangzhou Shengfeng Logistics Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Zhejiang, the PRC | |
Date of incorporation or acquisition | Jun. 10, 2010 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Nanjing Shengfeng Logistics Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Jiangsu, the PRC | |
Date of incorporation or acquisition | Aug. 30, 2011 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Suzhou Shengfeng Logistics Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Jiangsu, the PRC | |
Date of incorporation or acquisition | Jan. 14, 2005 | |
Percentage of direct or indirect | 90% | |
Principal activities | Transportation and warehouse storage management service | |
Suzhou Shengfeng Supply Chain Management Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Jiangsu, the PRC | [2] |
Date of incorporation or acquisition | Aug. 09, 2019 | [2] |
Percentage of direct or indirect | 100% | [2] |
Principal activities | Transportation and warehouse storage management service | [2] |
Shengfeng Supply Chain Management Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Fujian, the PRC | |
Date of incorporation or acquisition | Jun. 19, 2014 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Fuzhou Shengfeng Transportation Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Fujian, the PRC | |
Date of incorporation or acquisition | Apr. 18, 2019 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Diaobingshan Hengde Logistics Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Liaoning, the PRC | [3] |
Date of incorporation or acquisition | Apr. 23, 2018 | [3] |
Percentage of direct or indirect | 0% | [3] |
Principal activities | Transportation and warehouse storage management service | [3] |
Sichuan Shengfeng Logistics Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Sichuan, the PRC | |
Date of incorporation or acquisition | Jun. 27, 2019 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Fujian Shengfeng Logistics Co., Ltd.[Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Fujian, the PRC | |
Date of incorporation or acquisition | Apr. 02, 2020 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Fujian Dafengche Information Technology Co. Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Fujian, the PRC | |
Date of incorporation or acquisition | Aug. 26, 2020 | |
Percentage of direct or indirect | 100% | |
Principal activities | Software engineering | |
Ningde Shengfeng Logistics Co. Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Fujian, the PRC | [4] |
Date of incorporation or acquisition | Nov. 12, 2018 | [4] |
Percentage of direct or indirect | 51% | [4] |
Principal activities | Transportation and warehouse storage management service | [4] |
Fujian Fengche Logistics Co., Ltd.(e) [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Fujian, the PRC | |
Date of incorporation or acquisition | Oct. 28, 2020 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation service | |
Fujian Hangfeng Logistics Technology Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Fujian, the PRC | [5] |
Date of incorporation or acquisition | Oct. 13, 2020 | [5] |
Percentage of direct or indirect | 0% | [5] |
Principal activities | Online service | [5] |
Shengfeng Logistics (Zhejiang) Co., Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Zhejiang, the PRC | |
Date of incorporation or acquisition | Feb. 01, 2021 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
Chengdu Shengfeng Supply Chain Management Co., Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Chengdu, the PRC | |
Date of incorporation or acquisition | Oct. 12, 2021 | |
Percentage of direct or indirect | 100% | |
Principal activities | Supply chain service | |
Shengfeng Logistics Group (Ningde) Supply Chain Management Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Fujian, the PRC | [6] |
Date of incorporation or acquisition | Sep. 23, 2022 | [6] |
Percentage of direct or indirect | 100% | [6] |
Principal activities | Supply chain service | [6] |
Yichun Shengfeng Logistics Co., Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Place of incorporation | Jiangxi, the PRC | |
Date of incorporation or acquisition | Dec. 01, 2022 | |
Percentage of direct or indirect | 100% | |
Principal activities | Transportation and warehouse storage management service | |
[1]On July 14, 2021, Shengfeng Logistics entered into a share transfer agreement with Dongguan Suxing New Material Co., Ltd (“Dongguan Suxing”), a related party, to transfer its 51% equity interest in Fuzhou Shengfeng New Material Technology Co., Ltd. (“New Material Technology”) to Dongguan Suxing for a consideration of $468,973 (RMB3,060,000). The aforementioned transaction was completed during the year ended December 31, 2021. The Company has continued to operate the transportation business through the VIE’s other subsidiaries. Since New Material Technology’s operating revenue was less than 1% of the Company’s consolidated revenue, the transfer did not constitute a strategic shift that would have a major effect on the Company’s operations and financial results. The results of operations for New Material Technology were not reported as discontinued operations in the consolidated financial statements.[2]On July 8, 2021, Suzhou Shengfeng Supply Chain Management Co, Ltd. became a wholly owned subsidiary of Shengfeng Logistics.[3] On April 20, 2021, Shengfeng Logistics entered into a share transfer agreement with Mr. Sun Mingyang, an unrelated third party, among others, to transfer its 51% equity interest in Diaobingshan Hengde Logistics Co., Ltd. to Mr. Sun Mingyang for a consideration of approximately $0.3 million. The aforementioned transaction was completed during the year ended December 31, 2021. The Company has continued to operate the transportation business through the VIE’s other subsidiaries. Since Diaobingshan Hengde Logistics Co., Ltd.’s operating revenue was less than 1% of the Company’s consolidated revenue, the transfer did not constitute a strategic shift that would have a major effect on the Company’s operations and financial results. The results of operations for Diaobingshan Hengde Logistics Co., Ltd. were not reported as discontinued operations in the consolidated financial statements. 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. According to the share transfer agreement, instead of paying any cash consideration to Shengfeng Logistics, Fuzhou Puhui was required to make a capital contribution to fulfill the required registered capital (approximately $14.4 million or RMB100 million) based on its 49% ownership interest (approximately $7.0 million or RMB49 million). The aforementioned transaction has been completed. After the transaction, the Company owned a 51% equity interest in Ningde Shengfeng. On March 16, 2022, Fujian Hangfeng Logistics Technology Co., Ltd. was deregistered, as it has not commenced business operations and the Company has cancelled the future plans for such entity. On September 23, 2022, Shengfeng Logistics Group (Ningde) Supply Chain Management Co., Ltd. was set up in Fujian, China. This entity is fully owned by Shengfeng Logistics Group Co., Ltd. and will provide supply chain service in the future. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||||||||
Jan. 01, 2019 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) $ / shares | Dec. 31, 2022 CNY (¥) shares | Jul. 18, 2022 | Jul. 14, 2022 | Jul. 07, 2022 | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Other comprehensive income loss | $ 5,609 | $ 2,548 | ||||||||
Shareholders’ equity (in Yuan Renminbi) | ¥ | ¥ 6.9646 | ¥ 6.3757 | ||||||||
Average translation amount (in Yuan Renminbi) | ¥ | ¥ 6.7261 | ¥ 6.4515 | ¥ 6.8976 | |||||||
Average translation per share (in Dollars per share) | $ / shares | $ 1 | |||||||||
Maturities months | 3 months | |||||||||
Cash, Uninsured Amount | $ 21,300,000 | 18,600,000 | ||||||||
Provisions for prepayments and other assets | 500,000 | 400,000 | ||||||||
Contract liabilities | 700,000 | 2,500,000 | $ 700,000 | |||||||
Contract liabilities | 1,100,000 | 1,000,000 | ||||||||
Transportation spent | 1,000,000 | 1,500,000 | ||||||||
Government subsidies | 800,000 | 600,000 | 2,200,000 | |||||||
Advertising expense | 50,000 | 80,000 | 60,000 | |||||||
Contribution expenses | $ 1,300,000 | 2,400,000 | $ 2,900,000 | |||||||
Lease term | 12 months | 12 months | ||||||||
Operating leases term | 1 year | 1 year | ||||||||
Operating lease liabilities | $ 28,000,000 | $ 3,500,000 | ||||||||
VAT rates | 13% | 13% | 4% | 4% | 4% | |||||
Tax authorities | 5 years | |||||||||
Tax benefit rate | 50% | |||||||||
VIE least rate | 10% | |||||||||
Statutory reserves rate | 50% | |||||||||
Deposited amount | $ 23,400,000 | $ 18,900,000 | ||||||||
Deposit insurance limit (in Yuan Renminbi) | ¥ | ¥ 500,000 | |||||||||
Percentage depreciated | 9.24% | 2.29% | ||||||||
Percentage of total revenue | 10% | 27.80% | 12.40% | 10% | 27.80% | 12.40% | ||||
Percentage of account receivables | 10% | 10% | ||||||||
Percentage of account payable balances | 13.40% | 14.40% | ||||||||
Registered capital | 27.20% | 27.20% | ||||||||
Number of reportable segment | 1 | |||||||||
Minimum [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Estimated useful lives term | 5 years | |||||||||
Maximum [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Estimated useful lives term | 50 years | |||||||||
Fujian Jinwang Yuntong Logistics Technology Co., Ltd. [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Percentage of total revenue | 23.50% | 23.50% | ||||||||
Hubei Luge Logistics Co., Ltd. [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Percentage of total revenue | 19.80% | 19.80% | ||||||||
Class A Ordinary Share [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Convertible share (in Shares) | shares | 1 | 1 | ||||||||
Value added tax (“VAT”) [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Tax authorities | 5 years | |||||||||
Accounts Receivable [Member] | ||||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||||
Allowance for doubtful accounts | $ 3,100,000 | $ 2,400,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of consolidated total assets and liabilities - VIE [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Current assets | $ 135,650 | $ 121,698 |
Non-current assets | 109,481 | 122,511 |
Total assets | 245,131 | 244,209 |
Current liabilities | 130,196 | 125,352 |
Non-current liabilities | 19,377 | 22,959 |
Total liabilities | 149,573 | 148,311 |
Net assets | $ 95,558 | $ 95,898 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of consolidated operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Consolidated Operations [Abstract] | |||
Total revenues | $ 370,325 | $ 346,699 | $ 287,464 |
Cost of revenues | (328,793) | (305,354) | (251,489) |
Income from operations | 10,318 | 8,587 | 6,204 |
Net income | $ 8,298 | $ 6,644 | $ 6,043 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Leasehold improvements | Lesser of the lease term or the estimated useful lives of the assets |
Building [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment, net | 10 years |
Building [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment, net | 40 years |
Office Equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment, net | 5 years |
Office Equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment, net | 10 years |
Machinery and Tools [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment, net | 5 years |
Vehicles [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment, net | 5 years |
Vehicles [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment, net | 7 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives | 12 Months Ended |
Dec. 31, 2022 | |
Land Use Right [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Intangible assets, net | 32 years |
Land Use Right [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Intangible assets, net | 50 years |
Licensed Software [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Intangible assets, net | 5 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of disaggregated information of revenues - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Transportation | $ 346,039 | $ 327,848 | $ 273,685 |
Warehouse storage and storage management service | 20,322 | 16,885 | 12,364 |
Others | 3,964 | 1,966 | 1,415 |
Total revenues | $ 370,325 | $ 346,699 | $ 287,464 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details) - Schedule of PRC - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | |||
Total | $ 370,325 | $ 346,699 | $ 287,464 |
Fujian [Member] | |||
Variable Interest Entity [Line Items] | |||
Total | 218,523 | 197,647 | 154,155 |
Guangdong [Member] | |||
Variable Interest Entity [Line Items] | |||
Total | 17,848 | 22,447 | 28,622 |
Beijing [Member] | |||
Variable Interest Entity [Line Items] | |||
Total | 36,958 | 36,365 | 24,362 |
Shandong [Member] | |||
Variable Interest Entity [Line Items] | |||
Total | 14,159 | 12,069 | 12,858 |
Liaoning [Member] | |||
Variable Interest Entity [Line Items] | |||
Total | 7,815 | 7,698 | 10,507 |
Jiangsu [Member] | |||
Variable Interest Entity [Line Items] | |||
Total | 6,556 | 7,926 | 9,039 |
Zhejiang [Member] | |||
Variable Interest Entity [Line Items] | |||
Total | 15,782 | 11,466 | 8,681 |
Others [Member] | |||
Variable Interest Entity [Line Items] | |||
Total | $ 52,884 | $ 51,081 | $ 39,240 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivable, net - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Accounts Receivable Net Abstract | ||
Accounts receivable | $ 92,225 | $ 83,019 |
Less: Allowance for doubtful accounts | (3,115) | (2,398) |
Total | $ 89,110 | $ 80,621 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of movement of allowance of doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of movement of allowance of doubtful accounts [Abstract] | |||
Beginning balance | $ 2,398 | $ 2,537 | $ 2,162 |
Ending balance | 3,115 | 2,398 | 2,537 |
Provision for doubtful accounts | 1,130 | 428 | 399 |
Written-off | (178) | (624) | (185) |
Exchange rate effect | $ (235) | $ 57 | $ 161 |
Prepayments and Other Assets,_3
Prepayments and Other Assets, Net (Details) - Schedule of prepayments and other assets, net - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of prepayments and other assets, net [Abstract] | |||
Deposits | [1] | $ 9,149 | $ 8,414 |
Prepayments for goods and services | 4,004 | 2,470 | |
VAT recoverable | [2] | 3,843 | 5,081 |
Prepayments for long-lived assets | [3] | 15,789 | 15,998 |
Advances to employees | 63 | 228 | |
Others | 538 | 924 | |
Prepayments and other assets | 33,386 | 33,115 | |
Less: Provisions for prepayments and other assets | (454) | (439) | |
Prepayments and other assets, net | 32,932 | 32,676 | |
Less: Prepayments and other current assets, net | (18,292) | (17,934) | |
Other non-current assets | $ 14,640 | $ 14,742 | |
[1] Deposits represent the refundable deposits to the lessors for the leased warehouses and office space. VAT recoverable represents the balances that the Company can utilize to deduct its value-added tax liabilities within the next 12 months. Prepayments for long-lived assets represent mainly prepayments for constructions of logistic stations. |
Prepayments and Other Assets,_4
Prepayments and Other Assets, Net (Details) - Schedule of movement of allowance of doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of movement of allowance of doubtful accounts [Abstract] | |||
Beginning balance | $ 439 | $ 591 | $ 382 |
Provisions for prepayments and other assets | 54 | 173 | |
Written-off | (164) | ||
Exchange rate effect | (39) | 12 | 36 |
Ending balance | $ 454 | $ 439 | $ 591 |
Property and equipment, net (De
Property and equipment, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Net book value | $ 18.1 | $ 20.2 | |
Depreciation and amortization expenses | 7 | 5.9 | $ 4.7 |
Depreciation and amortization included in the cost of revenue | 6.1 | 4.9 | 4.2 |
General and administrative expenses | $ 0.9 | $ 1 | $ 0.5 |
Property and equipment, net (_2
Property and equipment, net (Details) - Schedule of property and equipment, net - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 74,279 | $ 82,090 |
Less: accumulated depreciation and amortization | (34,014) | (34,809) |
Property and equipment, net | 40,265 | 47,281 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 24,150 | 26,411 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,230 | 3,401 |
Machinery and tools [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,879 | 1,886 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 37,841 | 43,330 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,964 | 6,310 |
Constructions in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,215 | $ 752 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Prepayments and Other Assets, Net [Abstract] | |||
Land use-right with net book value | $ 2.6 | $ 2.9 | |
Amortization expenses | $ 0.5 | $ 0.5 | $ 0.5 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets with definite useful lives primarily consisted of land use rights an licensed software - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | $ 10,144 | $ 10,724 |
Less: accumulated amortization | (3,433) | (3,197) |
Intangible assets, net | 6,711 | 7,527 |
Land use rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | 8,011 | 8,751 |
Licensed software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | $ 2,133 | $ 1,973 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of future amortization for the intangible assets $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule of Future Amortization for the Intangible Assets [Abstract] | |
2023 | $ 547 |
2024 | 547 |
2025 | 327 |
2026 | 321 |
2027 | 289 |
Thereafter | 4,680 |
Total | $ 6,711 |
Long-term investments (Details)
Long-term investments (Details) ¥ in Millions, $ in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) |
2007 Plan [Member] | Guorong [Member] | ||
Long-term investments (Details) [Line Items] | ||
Equity interest rate | 40% | 40% |
Fujian Bafang [Member] | 2007 Plan [Member] | ||
Long-term investments (Details) [Line Items] | ||
Cash consideration amount | $ | $ 1.7 | |
Guorong [Member] | 2011 Plan [Member] | ||
Long-term investments (Details) [Line Items] | ||
Cash consideration amount | ¥ | ¥ 12 |
Long-term investments (Detail_2
Long-term investments (Details) - Schedule of long-term investments - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Long Term Investments [Abstract] | ||
Equity investments accounted for using the equity method | $ 2,040 | $ 2,142 |
Long-term investments (Detail_3
Long-term investments (Details) - Schedule of movement of equity method investment - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Movement Of Equity Method Investment [Abstract] | |||
Beginning balance | $ 2,142 | $ 2,024 | $ 1,839 |
Ending balance | 2,040 | 2,142 | 2,024 |
Share of income in equity method investee | 82 | 70 | 55 |
Exchange rate effect | $ (184) | $ 48 | $ 130 |
Deposit for Investment (Details
Deposit for Investment (Details) ¥ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||
Dec. 15, 2022 | Aug. 16, 2019 | Dec. 23, 2022 USD ($) | Dec. 23, 2022 CNY (¥) | Jan. 30, 2022 USD ($) | Jan. 30, 2022 CNY (¥) | Jun. 30, 2020 | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 23, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jan. 19, 2022 USD ($) | Jan. 19, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | |
Deposit for Investment (Details) [Line Items] | |||||||||||||||
Equity intrest rate | 100% | ||||||||||||||
Total consideration | $ 28.7 | ¥ 200,000 | |||||||||||||
Company paid | 14.3 | 100,000 | |||||||||||||
Deposit received interest | 8% | 6% | 6% | 8% | 8% | ||||||||||
Deposit amount | 14.3 | 100,000 | |||||||||||||
Initial payment | 8.6 | 60,000 | |||||||||||||
Breakage fee | 3.1 | 20,000 | |||||||||||||
Interest payment | $ 1.2 | ¥ 8,000 | $ 1.2 | ¥ 8,000 | 1.2 | 8,360 | |||||||||
Received interest | $ 1.2 | ¥ 8,000 | $ 1.2 | ¥ 8,000 | |||||||||||
Investment deposit | ¥ 100,000 | $ 14.4 | $ 15.7 | ||||||||||||
Huasheng [Member] | |||||||||||||||
Deposit for Investment (Details) [Line Items] | |||||||||||||||
Company paid | $ 8.6 | ¥ 60,000 |
Related Party Transactions (Det
Related Party Transactions (Details) ¥ in Millions, $ in Millions | Sep. 15, 2021 USD ($) | Sep. 15, 2021 CNY (¥) | Jul. 14, 2021 |
Related Party Transactions (Details) [Line Items] | |||
Principal amount | $ 1.4 | ¥ 9.6 | |
Material Co., Ltd [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Equity interests percentage | 51% | ||
Hainan Tianyi [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Equity interests percentage | 5% | 5% |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of related parties and their relationships | 12 Months Ended |
Dec. 31, 2022 | |
Fujian Bafang [Member] | |
Related Party Transactions (Details) - Schedule of related parties and their relationships [Line Items] | |
Related parties relationship | An equity investee of the Company |
Fuzhou Tianyu Shengfeng Industrial Co., Ltd (“Fuzhou Tianyu”) [Member] | |
Related Party Transactions (Details) - Schedule of related parties and their relationships [Line Items] | |
Related parties relationship | A company controlled by Yongteng Liu, who is the brother of Yongxu Liu, CEO and Chairman of the Company |
Fuzhou Tianyu Shengfeng Property Management Co., Ltd (“Fuzhou Tianyu Management”) [Member] | |
Related Party Transactions (Details) - Schedule of related parties and their relationships [Line Items] | |
Related parties relationship | A company under the control of a shareholder |
Fuzhou Tianyu Yuanmei Catering Co., Ltd (“Fuzhou Tianyu Catering”) [Member] | |
Related Party Transactions (Details) - Schedule of related parties and their relationships [Line Items] | |
Related parties relationship | A company under the control of a shareholder |
Beijing Union Logistics Co., Ltd (“Beijing Banglian”) [Member] | |
Related Party Transactions (Details) - Schedule of related parties and their relationships [Line Items] | |
Related parties relationship | A company under the control of a shareholder |
Fujian Desheng Logistics Co., Ltd (“Fujian Desheng”) [Member] | |
Related Party Transactions (Details) - Schedule of related parties and their relationships [Line Items] | |
Related parties relationship | A company under the control of a shareholder |
Dongguan Suxing New Material Co., Ltd (“Suxing”) [Member] | |
Related Party Transactions (Details) - Schedule of related parties and their relationships [Line Items] | |
Related parties relationship | A company under the control of a non-controlling shareholder |
Hainan Tianyi Logistics Distribution Co., Ltd (“Hainan Tianyi”) [Member] | |
Related Party Transactions (Details) - Schedule of related parties and their relationships [Line Items] | |
Related parties relationship | An equity investee of the Company |
Yongteng Liu [Member] | |
Related Party Transactions (Details) - Schedule of related parties and their relationships [Line Items] | |
Related parties relationship | CEO’s brother |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of transactions with related parties - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Total | $ 18 | $ 349 | $ 56 |
Transportation services to Fujian Bafang [Member] | |||
Related Party Transaction [Line Items] | |||
Transactions with related parties | 18 | 7 | |
Transportation services to Fujian Desheng [Member] | |||
Related Party Transaction [Line Items] | |||
Transactions with related parties | 349 | ||
Sales of material to suxing [Member] | |||
Related Party Transaction [Line Items] | |||
Transactions with related parties | 49 | ||
Transportation services from Beijing Banglian [Member] | |||
Related Party Transaction [Line Items] | |||
Transactions with related parties | 2,265 | 2,750 | |
Transportation services from Hainan Tianyi [Member] | |||
Related Party Transaction [Line Items] | |||
Transactions with related parties | 1,207 | 1,109 | |
Transportation services from Fujian Bafang [Member] | |||
Related Party Transaction [Line Items] | |||
Transactions with related parties | 1,196 | 157 | 144 |
Purchase raw materials from Suxing [Member] | |||
Related Party Transaction [Line Items] | |||
Transactions with related parties | 577 | 781 | |
Lease services from Fuzhou Tianyu [Member] | |||
Related Party Transaction [Line Items] | |||
Transactions with related parties | 305 | 358 | 296 |
Lease services from Fuzhou Tianyu Management [Member] | |||
Related Party Transaction [Line Items] | |||
Transactions with related parties | $ 35 |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of balances with related parties - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transactions (Details) - Schedule of balances with related parties [Line Items] | ||
Total due from related parties | $ 42 | $ 50 |
Total due to related parties | 2,414 | 1,877 |
Fuzhou Tianyu [Member] | ||
Related Party Transactions (Details) - Schedule of balances with related parties [Line Items] | ||
Total due from related parties | 42 | 46 |
Total due to related parties | 84 | 29 |
Beijing Banglian [Member] | ||
Related Party Transactions (Details) - Schedule of balances with related parties [Line Items] | ||
Total due from related parties | 4 | |
Total due to related parties | 246 | |
Fujian Bafang [Member] | ||
Related Party Transactions (Details) - Schedule of balances with related parties [Line Items] | ||
Total due to related parties | 1,694 | 1,574 |
Fuzhou Tianyu Management [Member] | ||
Related Party Transactions (Details) - Schedule of balances with related parties [Line Items] | ||
Total due to related parties | 36 | 24 |
Hainan Tianyi [Member] | ||
Related Party Transactions (Details) - Schedule of balances with related parties [Line Items] | ||
Total due to related parties | 4 | |
Yongteng Liu [Member] | ||
Related Party Transactions (Details) - Schedule of balances with related parties [Line Items] | ||
Total due to related parties | $ 600 |
Short-Term Bank Loans (Details)
Short-Term Bank Loans (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mar. 15, 2023 USD ($) | Mar. 15, 2023 CNY (¥) | Jan. 09, 2023 USD ($) | Jan. 09, 2023 CNY (¥) | Dec. 15, 2022 USD ($) | Dec. 15, 2022 CNY (¥) | Jul. 14, 2022 USD ($) | Jul. 14, 2022 CNY (¥) | Jun. 15, 2022 USD ($) | Jun. 15, 2022 CNY (¥) | Jun. 13, 2022 USD ($) | Jun. 13, 2022 CNY (¥) | Jun. 07, 2022 USD ($) | Jun. 07, 2022 CNY (¥) | Apr. 08, 2022 USD ($) | Apr. 08, 2022 CNY (¥) | Jan. 14, 2022 USD ($) | Jan. 14, 2022 CNY (¥) | Dec. 14, 2021 USD ($) | Dec. 14, 2021 CNY (¥) | Aug. 13, 2021 USD ($) | Aug. 13, 2021 CNY (¥) | Mar. 12, 2021 USD ($) | Mar. 12, 2021 CNY (¥) | Mar. 10, 2021 USD ($) | Mar. 10, 2021 CNY (¥) | Feb. 17, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 21, 2022 USD ($) | Dec. 21, 2022 CNY (¥) | Dec. 19, 2022 | Dec. 16, 2022 USD ($) | Dec. 16, 2022 CNY (¥) | Jul. 18, 2022 USD ($) | Jul. 18, 2022 CNY (¥) | Jul. 07, 2022 USD ($) | Jul. 07, 2022 CNY (¥) | Jun. 23, 2022 USD ($) | Jun. 23, 2022 CNY (¥) | May 26, 2022 USD ($) | May 26, 2022 CNY (¥) | May 18, 2022 USD ($) | May 18, 2022 CNY (¥) | Mar. 21, 2022 USD ($) | Mar. 21, 2022 CNY (¥) | Mar. 17, 2022 USD ($) | Mar. 17, 2022 CNY (¥) | Jan. 21, 2022 USD ($) | Jan. 21, 2022 CNY (¥) | Jan. 19, 2022 USD ($) | Jan. 19, 2022 CNY (¥) | Dec. 24, 2021 USD ($) | Aug. 26, 2021 USD ($) | Aug. 26, 2021 CNY (¥) | Aug. 03, 2021 USD ($) | Aug. 03, 2021 CNY (¥) | Dec. 31, 2019 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Apr. 24, 2023 USD ($) | Apr. 24, 2023 CNY (¥) | Apr. 17, 2023 USD ($) | Apr. 17, 2023 CNY (¥) | Mar. 21, 2023 USD ($) | Mar. 21, 2023 CNY (¥) | Feb. 20, 2023 USD ($) | Feb. 20, 2023 CNY (¥) | Feb. 07, 2023 USD ($) | Feb. 07, 2023 CNY (¥) | Jan. 28, 2023 USD ($) | Jan. 28, 2023 CNY (¥) | Jan. 17, 2023 USD ($) | Jan. 17, 2023 CNY (¥) | Jan. 09, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 22, 2022 USD ($) | Dec. 22, 2022 CNY (¥) | Dec. 21, 2022 CNY (¥) | Dec. 16, 2022 CNY (¥) | Dec. 15, 2022 CNY (¥) | Nov. 09, 2022 USD ($) | Nov. 09, 2022 CNY (¥) | Oct. 21, 2022 | Sep. 19, 2022 USD ($) | Sep. 19, 2022 CNY (¥) | Jun. 16, 2022 USD ($) | Jun. 16, 2022 CNY (¥) | Apr. 15, 2022 USD ($) | Apr. 15, 2022 CNY (¥) | Apr. 12, 2022 USD ($) | Apr. 12, 2022 CNY (¥) | Apr. 08, 2022 CNY (¥) | Mar. 17, 2022 CNY (¥) | Mar. 08, 2022 USD ($) | Mar. 08, 2022 CNY (¥) | Mar. 04, 2022 USD ($) | Mar. 04, 2022 CNY (¥) | Feb. 28, 2022 USD ($) | Feb. 28, 2022 CNY (¥) | Feb. 22, 2022 USD ($) | Feb. 22, 2022 CNY (¥) | Jan. 28, 2022 USD ($) | Jan. 28, 2022 CNY (¥) | Jan. 21, 2022 CNY (¥) | Jan. 19, 2022 CNY (¥) | Jan. 14, 2022 CNY (¥) | Dec. 24, 2021 CNY (¥) | Sep. 22, 2021 USD ($) | Sep. 22, 2021 CNY (¥) | Sep. 17, 2021 USD ($) | Sep. 17, 2021 CNY (¥) | Sep. 10, 2021 USD ($) | Sep. 10, 2021 CNY (¥) | Sep. 07, 2021 USD ($) | Sep. 07, 2021 CNY (¥) | Aug. 26, 2021 CNY (¥) | Aug. 19, 2021 USD ($) | Aug. 19, 2021 CNY (¥) | Aug. 11, 2021 USD ($) | Aug. 11, 2021 CNY (¥) | Aug. 10, 2021 USD ($) | Aug. 10, 2021 CNY (¥) | Aug. 03, 2021 CNY (¥) | Jul. 21, 2021 USD ($) | Jul. 21, 2021 CNY (¥) | Jul. 14, 2021 USD ($) | Jul. 14, 2021 CNY (¥) | Jun. 28, 2021 USD ($) | Jun. 28, 2021 CNY (¥) | Jun. 09, 2021 USD ($) | Jun. 09, 2021 CNY (¥) | Jun. 01, 2021 USD ($) | Jun. 01, 2021 CNY (¥) | Apr. 02, 2021 USD ($) | Apr. 02, 2021 CNY (¥) | Mar. 26, 2021 USD ($) | Mar. 26, 2021 CNY (¥) | Mar. 10, 2021 CNY (¥) | Mar. 09, 2021 USD ($) | Mar. 09, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Nov. 28, 2020 USD ($) | Nov. 28, 2020 CNY (¥) | Nov. 10, 2020 USD ($) | Nov. 10, 2020 CNY (¥) | Oct. 26, 2020 USD ($) | Oct. 26, 2020 CNY (¥) | Oct. 22, 2020 USD ($) | Oct. 22, 2020 CNY (¥) | Oct. 12, 2020 USD ($) | Oct. 12, 2020 CNY (¥) | Sep. 25, 2020 USD ($) | Sep. 25, 2020 CNY (¥) | Apr. 08, 2020 USD ($) | Apr. 07, 2020 USD ($) | Apr. 07, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) | Sep. 26, 2019 | |
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank borrowings | $ 47,655,000 | $ 47,655,000 | $ 45,956,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate | 4.48% | 4.48% | 4.70% | 4.48% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term loan facility amount | $ 12,300,000 | ¥ 80,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 4% | 4% | 13% | 4% | 4% | 4% | 4% | 13% | 13% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate amount | $ 8,400,000 | $ 8,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Land use rights for property | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan amount | 5,800,000 | $ 5,800,000 | ¥ 37,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity date | Sep. 10, 2022 | Sep. 10, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of long term loans | $ 2,820,000 | ¥ 18,000,000 | $ 3,140,000 | ¥ 20,000,000 | $ 5,800,000 | ¥ 37,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional loan | $ 2,600,000 | ¥ 18,000,000 | $ 4,300,000 | ¥ 30,000,000 | $ 2,900,000 | ¥ 20,000,000 | $ 5,300,000 | ¥ 37,000,000 | $ 2,900,000 | ¥ 20,000,000 | $ 2,400,000 | ¥ 17,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan amount outstanding | $ 11,500,000 | ¥ 75,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount obtained under credit line | $ 1,900,000 | ¥ 13,000,000 | 10,800,000 | 75,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of loan | $ 3,000,000 | ¥ 20,000,000 | $ 4,600,000 | ¥ 30,000,000 | $ 2,600,000 | ¥ 17,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 4.10% | 4.10% | 4.20% | 4.20% | 4.35% | 4.35% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total facility | 9,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing exposure balance | $ 61,300,000 | ¥ 400,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annual revenue percentage | 25% | 25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loan facility available | 7,700,000 | $ 7,700,000 | 50,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan drawn | $ 4,600,000 | ¥ 30,000,000 | $ 3,100,000 | ¥ 20,000,000 | $ 2,600,000 | ¥ 17,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate amount | 8,600,000 | $ 8,600,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term facility agreement, Description | Pursuant to the loan facility agreement, the Company shall meet two financial covenants that: (i) its current ratio shall be no less than 0.85; and (ii) the financing exposure balance shall be no more than approximately $57.4 million (RMB400,000,000) or 25% of the annual revenue. The unpaid loan balance under the prior loan agreements were transferred to this new loan facility agreement according to the terms stated in the new agreement. On April 7, 2023, the Company drew down approximately $1.9 million (RMB13 million) under this line at a fixed interest rate of 2.5% per annum. | Pursuant to the loan facility agreement, the Company shall meet two financial covenants that: (i) its current ratio shall be no less than 0.85; and (ii) the financing exposure balance shall be no more than approximately $57.4 million (RMB400,000,000) or 25% of the annual revenue. The unpaid loan balance under the prior loan agreements were transferred to this new loan facility agreement according to the terms stated in the new agreement. On April 7, 2023, the Company drew down approximately $1.9 million (RMB13 million) under this line at a fixed interest rate of 2.5% per annum. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of repayment | the Company repaid approximately $1.4 million (RMB10 million), $0.7 million (RMB5 million) and $1.4 million (RMB10 million) to the bank. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate credit line | $ 42,500,000 | ¥ 295,900,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate of loan | 4% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate of loan | 2.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
China Merchant Bank Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank borrowings | $ 1,500,000 | $ 11,600,000 | ¥ 10,000,000 | $ 800,000 | ¥ 5,000,000 | $ 2,300,000 | ¥ 15,000,000 | ¥ 75,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan amount outstanding | ¥ | 75,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of loan | $ 2,300,000 | ¥ 15,000,000 | $ 2,300,000 | ¥ 15,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 4.50% | 4.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan drawn | $ 30,000 | ¥ 200,000 | $ 1,400,000 | ¥ 9,300,000 | $ 1,400,000 | ¥ 9,000,000 | $ 2,700,000 | ¥ 17,500,000 | $ 2,100,000 | ¥ 14,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate of loan | 4.30% | 4.50% | 4.30% | 4.50% | 4.30% | 4.30% | 4.30% | 4.30% | 4.30% | 4.30% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment to the bank | $ 2,400,000 | ¥ 17,000,000 | $ 2,200,000 | ¥ 15,000,000 | $ 3,100,000 | ¥ 20,000,000 | $ 4,600,000 | ¥ 30,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving loan facility Period | December 24, 2021 to December 23, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit line | 10,800,000 | 75,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Xiamen International Bank Co., Ltd. Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank borrowings | $ 3,100,000 | $ 4,300,000 | $ 3,100,000 | ¥ 20,000,000 | $ 4,300,000 | ¥ 30,000,000 | ¥ 20,000,000 | ¥ 30,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan amount outstanding | 4,300,000 | ¥ 30,000,000 | 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 5.50% | 5.50% | 5.60% | 5.60% | 5.60% | 6.20% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan drawn | $ 2,900,000 | ¥ 20,000,000 | $ 4,300,000 | ¥ 30,000,000 | $ 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment to the bank | $ 3,100,000 | ¥ 20,000,000 | $ 4,300,000 | ¥ 30,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving loan facility Period | (From August 13, 2019 to August 13, 2021) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit line | 4,300,000 | ¥ 30,000,000 | 2,900,000 | 20,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Haixia Bank of Fujian Fuzhou Jin’an Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank borrowings | $ 1,400,000 | ¥ 10,000,000 | $ 1,500,000 | ¥ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 5% | 5% | 5.50% | 5.50% | 5% | 5% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment to the bank | $ 750,000 | ¥ 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan agreement | $ 1,500,000 | ¥ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank borrowings | $ 1,500,000 | ¥ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch [Member] | Minimum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 3.35% | 3.35% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch [Member] | Maximum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 5.50% | 5.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank borrowings | $ 1,500,000 | ¥ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 4.65% | 4.65% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial Bank Fuzhou Huqian Sub Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank borrowings | $ 1,500,000 | ¥ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan amount outstanding | 1,500,000 | 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 3.80% | 3.80% | 3.35% | 3.35% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan drawn | $ 900,000 | ¥ 6,000,000 | $ 900,000 | ¥ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit line | 900,000 | ¥ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4.50%[Member] | China Merchant Bank Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan drawn | $ 2,400,000 | $ 2,200,000 | $ 1,400,000 | ¥ 10,000,000 | $ 700,000 | ¥ 5,000,000 | $ 1,400,000 | ¥ 10,000,000 | ¥ 15,000,000 | ¥ 17,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4.30%[Member] | China Merchant Bank Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan drawn | $ 2,300,000 | $ 3,000,000 | $ 1,400,000 | ¥ 10,000,000 | ¥ 21,000,000 | ¥ 16,000,000 | $ 3.6 | ¥ 25,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Xiamen International Bank Co., Ltd. Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan drawn | $ 3,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of loan | ¥ | ¥ 75,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable amount | $ 8,600,000 | ¥ 60,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Yongxu, LIU [Member] | China Merchant Bank Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Land use rights for property | $ 900,000 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forecast [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 5.50% | 5.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repaid | $ 100,000 | ¥ 1,000,000 | $ 1,900,000 | ¥ 13,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total facility | $ 11,500,000 | ¥ 80,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repaid amount to bank | $ 2,900,000 | ¥ 20,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan | $ 2,900,000 | ¥ 20,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
China Minsheng Bank Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term loan facility amount | $ 5,960,000 | ¥ 38,000,000 | $ 5,800,000 | ¥ 37,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 4.35% | 4.35% | 4.35% | 4.35% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan amount | $ 5,960,000 | $ 5,960,000 | ¥ 38,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity date | Sep. 22, 2022 | Sep. 22, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank of China Fuzhou Jin’an Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan amount outstanding | ¥ | ¥ 80,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount obtained under credit line | $ 11,500,000 | 80,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
China Merchant Bank Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank borrowings | 9,200,000 | ¥ 60,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fujian shengfeng logistics co., ltd.[Member] | China Merchant Bank Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan drawn | $ 1,500,000 | ¥ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate of loan | 4.50% | 4.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment to the bank | $ 1,500,000 | ¥ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fuqing Shengfeng Logistics Co., Ltd. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan drawn | ¥ | ¥ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate of loan | 4.50% | 4.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment to the bank | 500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fuqing Shengfeng Logistics Co., Ltd. [Member] | China Merchant Bank Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan drawn | $ 500,000 | $ 400,000 | ¥ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate of loan | 4.30% | 4.30% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment to the bank | ¥ | ¥ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fuqing Shengfeng Logistics Co., Ltd. [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank borrowings | $ 900,000 | ¥ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 3.70% | 3.70% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan drawn | $ 0.9 | ¥ 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
China Everbright Bank Co., Ltd Fuzhou Tongpan Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank borrowings | $ 0.9 | ¥ 6 | $ 0.9 | ¥ 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan amount outstanding | 900,000 | 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount obtained under credit line | 900,000 | 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 4.60% | 4.60% | 4.60% | 4.60% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan proceeds | $ 900,000 | ¥ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
China Everbright Bank Co., Ltd Fuzhou Tongpan Branch [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment to the bank | $ 900,000 | ¥ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guangxi Beibu Gulf Bank Nanning Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short term loan receivable | 0.8 | 5,300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expenses | 2,100,000 | $ 2,300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short term bank loans | 2,000,000 | $ 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate credit line | 43,000,000 | 300,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guangxi Beibu Gulf Bank Nanning Branch [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank borrowings | $ 0.7 | ¥ 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 4.16% | 4.16% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit [Member] | China Merchant Bank Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan drawn | $ 3,100,000 | $ 4,600,000 | ¥ 10,000,000 | ¥ 20,000,000 | ¥ 30,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit [Member] | China Merchant Bank Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan drawn | $ 1,600,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial Bank Co., Ltd. Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank borrowings | $ 1.5 | $ 1.4 | ¥ 10 | ¥ 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan amount outstanding | 1,500,000 | 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount obtained under credit line | $ 1,400,000 | ¥ 9,900,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed interest rate | 4.35% | 4.35% | 4.35% | 4.35% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan drawn | $ 1.4 | ¥ 9.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount received | $ 200,000 | ¥ 1,000,000 | $ 1,400,000 | ¥ 9,000,000 | $ 100,000 | ¥ 1,000,000 | $ 1,300,000 | ¥ 9,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fuzhou Tongpan Branch of China Everbright Bank Co., Ltd [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank borrowings | 900,000 | ¥ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan proceeds | $ 900,000 | ¥ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank of Communications Co., Ltd. Zhanjiang Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank borrowings | $ 20,000 | ¥ 153,449 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate [Member} | China Merchant Bank Fuzhou Branch [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Bank Loans (Details) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term loans real estate amount | $ 1,800,000 | $ 2,000,000 |
Short-Term Bank Loans (Detail_2
Short-Term Bank Loans (Details) - Schedule of short-term bank loans from commercial banks - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Short-Term Debt [Line Items] | ||
Short term bank loans | $ 47,655 | $ 45,956 |
Fuzhou Minhou Sugarcane Branch of China Minsheng Bank [Member] | ||
Short-Term Debt [Line Items] | ||
Short term bank loans | 10,769 | 11,765 |
Bank of China Fuzhou Jin’an Branch [Member] | ||
Short-Term Debt [Line Items] | ||
Short term bank loans | 11,487 | 10,509 |
China Merchant Bank Fuzhou Branch [Member] | ||
Short-Term Debt [Line Items] | ||
Short term bank loans | 10,769 | 9,411 |
Fuzhou Branch of Xiamen International Bank Co., Ltd. [Member] | ||
Short-Term Debt [Line Items] | ||
Short term bank loans | 7,179 | 7,842 |
Haixia Bank of Fujian Fuzhou Jin’an Branch [Member] | ||
Short-Term Debt [Line Items] | ||
Short term bank loans | 1,436 | 784 |
Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch [Member] | ||
Short-Term Debt [Line Items] | ||
Short term bank loans | 1,436 | 1,568 |
Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch [Member] | ||
Short-Term Debt [Line Items] | ||
Short term bank loans | 1,436 | 1,568 |
Industrial Bank Fuzhou Huqian Branch [Member] | ||
Short-Term Debt [Line Items] | ||
Short term bank loans | 861 | 941 |
Fuzhou Branch of Industrial Bank [Member] | ||
Short-Term Debt [Line Items] | ||
Short term bank loans | 1,421 | 1,568 |
Fuzhou Tongpan Branch of China Everbright Bank Co., Ltd [Member] | ||
Short-Term Debt [Line Items] | ||
Short term bank loans | $ 861 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - Schedule of accrued expenses and other current liabilities - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule Of Accrued Expenses And Other Current Liabilities [Abstract] | |||
Rental and freight logistics deposits received | $ 3,498 | $ 3,319 | |
Payables for long-term assets | 1,360 | 2,384 | |
Government subsidies | 1,467 | 1,259 | |
Contract liabilities | 1,142 | 1,012 | |
Cash collected on behalf of the customers | [1] | 181 | 262 |
Service payables | 12 | 122 | |
Contingent liability | 258 | 434 | |
Others | 503 | 536 | |
Total | 8,421 | 9,328 | |
Less: accrued expenses and other current liabilities | (6,551) | (7,854) | |
Other non-current liabilities | $ 1,870 | $ 1,474 | |
[1] The Company collects the goods considerations from the recipients after they deliver the goods to the determined locations on behalf of the customers, and will pay to the customers on a regular basis. |
Leases (Details) - Schedule of
Leases (Details) - Schedule of associated financial statement - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Operating lease right-of-use assets, net | $ 27,880 | $ 29,910 |
Liabilities | ||
Operating lease liabilities, current | 9,634 | 8,126 |
Operating lease liabilities, non-current | $ 17,507 | $ 21,485 |
Weighted average remaining lease term (in years) | 5 years 1 month 6 days | 5 years 7 months 6 days |
Weighted average discount rate (%) | 5.78% | 5.80% |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of operating lease activities - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Operating Lease Activities [Abstract] | |||
Operating lease right-of-use assets obtained in exchange for lease liabilities | $ 9,674 | $ 12,247 | $ 7,526 |
Operating lease expense | |||
Amortization of right-of-use assets | 9,157 | 7,963 | 7,248 |
Interest of lease liabilities | 1,656 | 1,585 | 1,339 |
Total | $ 10,813 | $ 9,548 | $ 8,587 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of maturities of lease liabilities $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule of Maturities of Lease Liabilities [Abstract] | |
2023 | $ 9,924 |
2024 | 7,017 |
2025 | 4,433 |
2026 | 3,055 |
2027 | 2,071 |
Thereafter | 4,706 |
Total lease payments | 31,206 |
Less: imputed interest | (4,065) |
Total | $ 27,141 |
Taxes (Details)
Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | |
Taxes (Details) [Line Items] | |||||
Preferential tax rate | 17% | 18.60% | 20.60% | ||
Effective income tax rate reconciliation, repatriation of foreign earnings, percent | 25% | ||||
Unrecognized tax benefits that would impact effective tax rate | $ 0.3 | $ 0.2 | $ 0.2 | $ 0.3 | |
Deferred tax assets, valuation allowance | |||||
Operating loss carryforwards | $ 9.5 | $ 16.8 | $ 9.5 | ||
Minimum [Member] | |||||
Taxes (Details) [Line Items] | |||||
Preferential tax rate | 2.50% | ||||
Finite lived in tangible asset useful life | 5 years | ||||
Maximum [Member] | |||||
Taxes (Details) [Line Items] | |||||
Preferential tax rate | 5% | ||||
Finite lived in tangible asset useful life | 10 years | ||||
Hong Kong [Member] | |||||
Taxes (Details) [Line Items] | |||||
Preferential tax rate | 16.50% | ||||
Beijing Tianyushengfeng E-commerce Technology Co., Ltd. [Member] | |||||
Taxes (Details) [Line Items] | |||||
Preferential tax rate | 15% | ||||
Beijing Tianyushengfeng E-commerce Technology Co., Ltd. [Member] | Forecast [Member] | |||||
Taxes (Details) [Line Items] | |||||
Preferential tax rate | 15% | ||||
Shengfeng Supply Chain Management Co., Ltd. [Member] | |||||
Taxes (Details) [Line Items] | |||||
Preferential tax rate | 15% |
Taxes (Details) - Schedule of i
Taxes (Details) - Schedule of income before income taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Income Before Income Taxes Abstract | |||
Non-PRC | $ (472) | ||
PRC | 9,897 | 8,161 | 7,613 |
Total | $ 9,425 | $ 8,161 | $ 7,613 |
Taxes (Details) - Schedule of t
Taxes (Details) - Schedule of the income tax provision - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of The Income Tax Provision Abstract | |||
Current | $ 361 | $ 21 | $ 268 |
Deferred | 1,238 | 1,496 | 1,302 |
Total | $ 1,599 | $ 1,517 | $ 1,570 |
Taxes (Details) - Schedule of s
Taxes (Details) - Schedule of statutory rates to the Company’s effective tax rate | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule Of Statutory Rates To The Company SEffective Tax Rate Abstract | ||||
PRC statutory income tax rate | 25% | 25% | 25% | |
Effect of preferential tax rates | [1] | (2.80%) | (3.80%) | (2.80%) |
Eligible additional deduction | (3.30%) | (3.20%) | (2.70%) | |
Impact of different tax rates in other jurisdictions | 1.30% | |||
Non-taxable and exemptions | (3.30%) | |||
Permanent differences | [2] | 0.10% | 0.60% | 1.10% |
Effective income tax rate | 17% | 18.60% | 20.60% | |
[1] Preferential tax rates for small and micro enterprises and high-tech entities. Permanent differences mainly consisted of non-deductible meal and entertainment fees in PRC tax returns. |
Taxes (Details) - Schedule of f
Taxes (Details) - Schedule of financial accounting basis and tax basis of assets and liabilities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Financial Accounting Basis And Tax Basis Of Assets And Liabilities Abstract | |||
Net operating losses carryforward | $ 2,300 | $ 4,104 | |
Allowance for doubtful accounts | 874 | 699 | |
Deferred income | [1] | 279 | 315 |
Intangible assets | [2] | 134 | 106 |
Subtotal | 3,587 | 5,224 | |
Less: valuation allowance | |||
Deferred tax assets | $ 3,587 | $ 5,224 | |
[1] Deferred income represents the assets related government subsidies, which will amortize on a straight-line basis within the useful life of related assets. The tax basis is recognized when the Company received the subsidies. Intangible asset represents the amortization temporary difference of licensed software. Management uses 10 years useful life as the tax basis, which is different from the 5 years useful life in accounting basis. |
Taxes (Details) - Schedule of_2
Taxes (Details) - Schedule of tax payable consisted - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Tax Payable Consisted Abstract | ||
Value-added tax payable | $ 1,828 | $ 2,523 |
Income tax payable | 185 | 18 |
Other taxes payable | 194 | 348 |
Total | $ 2,207 | $ 2,889 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 18, 2020 | ||
Shareholders' Equity (Details) [Line Items] | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal (in Dollars) | $ 0.3 | |||
Capital contribution (in Dollars) | $ 3.4 | |||
After tax net income percentage | 10% | |||
Entity registered capital | 50% | |||
After tax profit | 10% | |||
Registered capital | 50% | |||
Paid in capital (in Dollars) | $ 79.6 | |||
Statutory reserve (in Dollars) | $ 79 | |||
Ordinary Shares [Member] | ||||
Shareholders' Equity (Details) [Line Items] | ||||
Common stock, shares authorized | 50,000 | |||
Common stock, par or stated value per share (in Dollars per share) | $ 1 | $ 0.0001 | ||
Additional Paid In Capital | ||||
Shareholders' Equity (Details) [Line Items] | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal (in Dollars) | $ 2.5 | |||
Retained Earnings, Appropriated [Member] | ||||
Shareholders' Equity (Details) [Line Items] | ||||
Statutory reserves (in Dollars) | $ 4 | $ 3.4 | ||
Class A Ordinary Shares | ||||
Shareholders' Equity (Details) [Line Items] | ||||
Common stock, shares authorized | [1] | 400,000,000 | 400,000,000 | |
Common stock, par or stated value per share (in Dollars per share) | [1] | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued | [1] | 38,120,000 | 38,120,000 | |
Common stock, shares outstanding | [1] | 38,120,000 | 38,120,000 | |
Class A Ordinary Shares | Ordinary Shares [Member] | ||||
Shareholders' Equity (Details) [Line Items] | ||||
Common stock, shares authorized | 400,000,000 | |||
Common stock, shares issued | 38,120,000 | 38,120,000 | ||
Common stock, shares outstanding | 38,120,000 | 38,120,000 | ||
Class B ordinary Shares | ||||
Shareholders' Equity (Details) [Line Items] | ||||
Common stock, shares authorized | [1] | 100,000,000 | 100,000,000 | |
Common stock, par or stated value per share (in Dollars per share) | [1] | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued | [1] | 41,880,000 | 41,880,000 | |
Common stock, shares outstanding | [1] | 41,880,000 | 41,880,000 | |
Class B ordinary Shares | Ordinary Shares [Member] | ||||
Shareholders' Equity (Details) [Line Items] | ||||
Common stock, shares authorized | 100,000,000 | |||
Common stock, shares issued | 41,880,000 | 41,880,000 | ||
Common stock, shares outstanding | 41,880,000 | 41,880,000 | ||
[1] Shares and per share data are presented on a retroactive basis to reflect the reorganization. |
Commitments and Contingencies (
Commitments and Contingencies (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||
Jan. 01, 2019 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | |
Commitments and Contingencies [Abstract] | |||
Minimum lease payments | $ 28 | $ 3.5 | |
Restricted cash | $ 1 | ¥ 7.1 |
Subsequent Events (Details)
Subsequent Events (Details) - Forecast [Member] | Apr. 04, 2023 USD ($) $ / shares shares |
Subsequent Events (Details) [Line Items] | |
Initial public offering | $ 2,400,000 |
Public offering price per share (in Dollars per share) | $ / shares | $ 4 |
Aggregate gross proceeds | $ 9.6 |
Net proceeds amount | $ 8.5 |
Purchase of aggregate shares (in Shares) | shares | 144,000 |
Share price (in Dollars per share) | $ / shares | $ 4.46 |
Unaudited Condensed Financial_3
Unaudited Condensed Financial Information of The Parent Company (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Condensed Financial Information of the Parent Company [Abstract] | |
After tax profit percentage | 10% |
Registered capital percentage | 50% |
Subsidiaries exceed percentage | 25% |
Net assets percentage | 25% |
Unaudited Condensed Financial_4
Unaudited Condensed Financial Information of The Parent Company (Details) - Schedule of condensed balance sheets - Parent Company [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash | $ 47 | |
Total Current Assets | 47 | |
Deferred issuance costs | 81 | |
Investment in subsidiaries and VIEs (restricted) | 91,695 | 91,593 |
Non-current assets | 91,776 | 91,593 |
Total Assets | 91,823 | 91,593 |
Current liabilities | ||
Due to a related party | 600 | |
Total Current Liabilities | 600 | |
Total liabilities | 600 | |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Class A Ordinary share, $0.0001 par value, 400,000,000 shares authorized; 38,120,000 shares issued and outstanding as of December 31, 2022 and 2021 | 4 | 4 |
Class B Ordinary share, $0.0001 par value, 100,000,000 shares authorized; 41,880,000 shares issued and outstanding as of December 31, 2022 and 2021 | 4 | 4 |
Additional paid-in capital | 79,549 | 75,575 |
Retained earnings | 17,275 | 10,032 |
Accumulated other comprehensive income (loss) | (5,609) | 2,548 |
Total Shareholders’ Equity | 91,223 | 91,593 |
Total Liabilities and Shareholders’ Equity | $ 91,823 | $ 91,593 |
Unaudited Condensed Financial_5
Unaudited Condensed Financial Information of The Parent Company (Details) - Schedule of condensed balance sheets (Parentheticals) - Parent Company [Member] - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Class A Ordinary Share | ||
Schedule of Condensed Balance Sheets [Abstract] | ||
Ordinary share, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary share, shares authorized | 400,000,000 | 400,000,000 |
Ordinary share, shares issued | 38,120,000 | 38,120,000 |
Ordinary share, shares outstanding | 38,120,000 | 38,120,000 |
Class B Ordinary Share | ||
Schedule of Condensed Balance Sheets [Abstract] | ||
Ordinary share, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary share, shares authorized | 100,000,000 | 100,000,000 |
Ordinary share, shares issued | 41,880,000 | 41,880,000 |
Ordinary share, shares outstanding | 41,880,000 | 41,880,000 |
Unaudited Condensed Financial_6
Unaudited Condensed Financial Information of The Parent Company (Details) - Schedule of condensed statements of operations and comprehensive income (loss) - Parent Company [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Condensed Statements of Operations and Comprehensive Income (loss) [Abstract] | |||
Equity in earnings of subsidiaries | $ 8,259 | $ 6,898 | $ 6,091 |
General and administrative expenses | (472) | ||
NET INCOME | 7,787 | 6,898 | 6,091 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Foreign currency translation adjustment | (8,157) | 2,072 | 5,362 |
COMPREHENSIVE INCOME (LOSS) | $ (370) | $ 8,970 | $ 11,453 |
Unaudited Condensed Financial_7
Unaudited Condensed Financial Information of The Parent Company (Details) - Schedule of condensed statements of cash flow - Parent Company [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income | $ 7,787 | $ 6,898 | $ 6,091 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Equity income of subsidiaries and VIEs | (8,259) | (6,898) | (6,091) |
Net cash used in operating activities | (472) | ||
Cash flows from investing activities | |||
Cash flows from financing activities | |||
Due to related party | 600 | ||
Deferred issuance costs | (81) | ||
Net cash provided by operating activities | 519 | ||
Net increase in cash and restricted cash | 47 | ||
Cash and restricted cash, beginning of year | |||
Cash and restricted cash, end of year | $ 47 |