Shengfeng Development Enters China's Low-Altitude Logistics Sector; Co Believes This Move Will Allow It To Leverage Its Logistics Expertise In An Emerging Field That Integrates Drone Technology For Streamlined, Efficient Logistics Solutions Across Diverse Sectors, Particularly In High-Demand And Remote Regions

Shengfeng Development Limited ("Shengfeng" or the "Company") (NASDAQ:SFWL), a contract logistics company in China providing customers with integrated logistics solutions, announced today a strategic expansion into the low-altitude economy in China. The Company believes this move will allow it to leverage its logistics expertise in an emerging field that integrates drone technology for streamlined, efficient logistics solutions across diverse sectors, particularly in high-demand and remote regions.

China's low-altitude economy—encompassing civil and commercial drone operations in airspace up to 1,000 meters—is projected to grow rapidly, with the total market value expected to exceed 1 trillion yuan (approximately 140 billion USD) by 2026, according to recent studies by CCID Consulting Co., Ltd., a subsidiary of the China Center for Information Industry Development under China's Ministry of Industry and Information Technology. Such studies indicate that within this sector, low-altitude logistics has emerged as a transformative tool for urban parcel delivery, medical supply transport, and agricultural management, providing timely, cost-effective solutions for essential services. The potential applications of drone technology within the sector are expected to be extensive, and are anticipated to offer solutions that reduce operational costs, optimize logistics networks, and enhance last-mile delivery capabilities.