Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of October 2023

 

Commission File Number: 001-41674

 

Shengfeng Development Limited

 

Shengfeng Building, No. 478 Fuxin East Road

Jin’an District, Fuzhou City

Fujian Province, People’s Republic of China, 350001

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F ☒      Form 40-F ☐

 

 

 

 

 

 

EXPLANATORY NOTE

 

Shengfeng Development Limited is furnishing its unaudited condensed consolidated financial statements and footnotes for the six months ended June 30, 2023 and 2022. The financial statements and notes are attached as Exhibit 99.1 to this report of foreign private issuer on Form 6-K, and Management’s Discussion and Analysis of Financial Condition and Results of Operations for the six months ended June 30, 2023 is attached as Exhibit 99.2 to this report of foreign private issuer on Form 6-K.

 

On October 11, 2023, the Company issued a press release announcing its unaudited financial results for the six months ended June 30, 2023 and 2022, a copy of which press release is attached as Exhibit 99.3 to this report of foreign private issuer on Form 6-K.

 

1

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	Shengfeng Development Limited
Date: October 11, 2023	By:	/s/ Yongxu Liu
	Name:	Yongxu Liu
	Title:	Chief Executive Officer, President, Director, and Chairman (Principal Executive Officer)

 

2

 

 

EXHIBIT INDEX

 

Exhibit No.		Description
99.1		Unaudited Condensed Consolidated Financial Statements and Notes of Shengfeng Development Limited for the Six Months Ended June 30, 2023 and 2022
99.2		Management’s Discussion and Analysis of Financial Condition and Results of Operations
99.3		Press Release, dated October 11, 2023
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

 

3

 

 

Exhibit 99.1

 

SHENGFENG DEVELOPMENT LIMITED

 

INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

TABLE OF CONTENTS

 

CONTENTS		PAGE(S)
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2023 AND DECEMBER 31, 2022		F-2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022		F-3
UNAUDITED CONDENSED CONSOLIDAED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022		F-4
UNAUDITED CONDENSED CONSOLIDATED STATEMETNS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022		F-5
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS		F-6

 

F-1

 

 

SHENGFENG DEVELOPMENT LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

(All amounts in thousands of USD, except for share and per share data, unless otherwise noted)

 

		June 30,				December 31,
		2023				2022
Assets
Current Assets:
Cash and cash equivalents		$	29,082			$	21,285
Restricted cash			2,593				2,083
Notes receivable			4,505				4,885
Accounts receivable, net			75,774				89,110
Prepayments and other current assets, net			18,725				18,292
Due from related parties			41				42
Total Current Assets			130,720				135,697
Property and equipment, net			38,702				40,265
Intangible assets, net			12,237				6,711
Operating lease right-of-use assets, net			21,130				27,880
Long-term investments			1,888				2,040
Deposit for investment			13,839				14,358
Deferred tax assets			2,769				3,587
Deferred issuance costs			76				81
Other non-current assets			8,441				14,640
Total Assets		$	229,802			$	245,259
Liabilities and Shareholders’ Equity
Current Liabilities
Notes payable		$	9,411			$	2,046
Accounts payable			42,191				57,048
Short-term bank loans			34,861				47,655
Due to related parties			1,573				2,414
Salary and welfare payables			2,303				3,241
Accrued expenses and other current liabilities			7,592				6,551
Operating lease liabilities, current			7,382				9,634
Tax payables			3,202				2,207
Total Current Liabilities			108,515				130,796
Operating lease liabilities, non-current			13,401				17,507
Other non-current liabilities			1,775				1,870
Total Liabilities			123,691				150,173
Commitments and Contingencies
Shareholders’ Equity
Class A Ordinary share, $0.0001 par value, 400,000,000 shares authorized; 40,520,000 and 38,120,000 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively*			4				4
Class B Ordinary share, $0.0001 par value, 100,000,000 shares authorized; 41,880,000 shares issued and outstanding as of June 30, 2023 and December 31, 2022*			4				4
Additional paid-in capital			83,762				75,575
Statutory reserves			3,974				3,974
Retained earnings			23,719				17,275
Accumulated other comprehensive loss			(9,500	)			(5,609	)
Total Shengfeng Development Limited’s Shareholders’ Equity			101,963				91,223
Non-controlling Interests			4,148				3,863
Total Shareholders’ Equity			106,111				95,086
Total Liabilities and Shareholders’ Equity		$	229,802			$	245,259

 

*	Shares and per share data are presented on a retroactive basis to reflect the reorganization described herein.

 

The accompanying notes are an integral part of these consolidated financial statements.

 

F-2

 

 

SHENGFENG DEVELOPMENT LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)

 

(All amounts in thousands of USD, except for share and per share data, unless otherwise noted)

 

		Six Months Ended June 30,
		2023				2022
Revenues
Transportation		$	173,989			$	154,614
Warehouse storage management service			9,315				10,591
Others			1,667				1,333
Total revenues			184,971				166,538
Cost of revenues			(162,195	)			(148,296	)
Gross profit			22,776				18,242
Operating expenses
Selling and marketing			(3,336	)			(3,672	)
General and administrative			(10,976	)			(10,755	)
Total operating expenses			(14,312	)			(14,427	)
Income from operations			8,464				3,815
Other income (expense)
Interest income			61				40
Interest expense			(982	)			(1,151	)
Other income, net			329				122
Income before income taxes			7,872				2,826
Provision for income taxes			(1,409	)			(371	)
Net income			6,463				2,455
Less: Income (loss) attributable to non-controlling interests			19				(1	)
Net income attributable to Shengfeng Development Limited’s shareholders		$	6,444			$	2,456
Comprehensive income (loss)
Net income			6,463				2,455
Foreign currency translation adjustment			(4,049	)			(4,880	)
Total comprehensive income (loss)			2,414				(2,425	)
Less: total comprehensive income (loss) attributable to non-controlling interests			(139	)			1
Total comprehensive income (loss) attributable to Shengfeng Development Limited		$	2,553			$	(2,426	)
Weighted average shares outstanding used in calculating basic and diluted loss per share:
Class A and Class B Ordinary Shares - Basic and diluted*			81,166,851				80,000,000
Earnings per share
Class A and Class B Ordinary Shares - Basic and diluted*		$	0.08			$	0.03

 

*	Shares and per share data are presented on a retroactive basis to reflect the reorganization described herein.

 

The accompanying notes are an integral part of these consolidated financial statements.

 

F-3

 

 

SHENGFENG DEVELOPMENT LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

 

(All amounts in thousands of USD, except for share and per share data, unless otherwise noted)

 

		Class A Ordinary Shares ($0.0001 par value)								Class B Ordinary Shares ($0.0001 par value)								Additional paid-in				Statutory				Retained				Accumulated other comprehensive income				Non- controlling				Total shareholders’
		Shares*				Amount				Shares				Amount				capital				reserves				earnings				(loss)				interests				equity
Balance as of December 31, 2022			38,120,000			$	4				41,880,000			$	4			$	75,575				3,974			$	17,275			$	(5,609	)			3,863				95,086
Net proceeds from initial public offering			2,400,000				-				-				-				8,187				-				-				-				-				8,187
Net income			-				-				-				-				-				-				6,444				-				19				6,463
Capital contribution from non-controlling shareholders			-				-				-				-				-				-				-				-				424				424
Foreign currency translation			-				-				-				-				-				-				-				(3,891	)			(158	)			(4,049	)
Balance as of June 30, 2023			40,520,000				4				41,880,000				4				83,762				3,974				23,719				(9,500	)			4,148				106,111
Balance as of December 31, 2021			38,120,000			$	4				41,880,000			$	4			$	75,575			$	3,430			$	10,032			$	2,548			$	4,305			$	95,898
Net income			-				-				-				-				-				-				2,456				-				(1	)			2,455
Foreign currency translation			-				-				-				-				-				-				-				(4,882	)			2				(4,880	)
Balance as of June 30, 2022			38,120,000			$	4				41,880,000			$	4			$	75,575			$	3,430			$	12,488			$	(2,334	)		$	4,306			$	93,473

 

*	Shares and per share data are presented on a retroactive basis to reflect the reorganization described herein.

 

The accompanying notes are an integral part of these consolidated financial statements.

 

F-4

 

 

SHENGFENG DEVELOPMENT LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(All amounts in thousands of USD, except for share and per share data, unless otherwise noted)

 

		Six Months Ended June 30,
		2023				2022
Cash flows from operating activities:
Net income		$	6,463			$	2,455
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization of property and equipment			3,265				3,643
Amortization of right-of-use assets and interest of lease liabilities			5,209				5,240
Amortization of intangible assets			269				279
Provision for (recovery of) doubtful accounts			(29	)			404
Share of income in equity method investee			(33	)			(51	)
Gain on disposal of property and equipment			(184	)			-
Loss from disposal of subsidiaries			92				-
Deferred income taxes expenses			700				270
Changes in operating assets and liabilities:
Notes receivable			212				1,466
Accounts receivable			10,564				(1,152	)
Prepayments and other current assets			(1,189	)			(2,538	)
Other non-current assets			(12	)			-
Notes payable			(902	)			2,499
Accounts payable			(13,343	)			(9,565	)
Due to related parties			(183	)			(3	)
Salary and welfare payable			(856	)			(583	)
Accrued expenses and other current liabilities			2,573				220
Operating lease liabilities			(4,829	)			(5,242	)
Tax payables			1,118				60
Other non-current liabilities			(29	)			(12	)
Net cash provided by (used in) operating activities			8,876				(2,610	)
Cash flows from investing activities:
Purchase of intangible assets			(185	)			(14	)
Purchase of property and equipment			(5,232	)			(5,535	)
Proceed from disposal of property and equipment			786				280
Proceed from disposal of subsidiary			52				-
Dividend received from investment			115				-
Net cash used in investing activities			(4,464	)			(5,269	)
Cash flows from financing activities:
Proceeds from initial public offering			8,547				-
Proceeds from short-term bank loans			36,368				29,644
Repayments of short-term bank loans			(39,255	)			(25,943	)
Due to related parties			(600	)			-
Capital contribution from non-controlling shareholders			424				-
Deferred issuance costs			(357	)			-
Net cash provided by financing activities			5,127				3,701
Effects of exchange rate changes on cash, cash equivalents and restricted cash			(1,232	)			(805	)
Net increase (decrease) in cash, cash equivalents and restricted cash			8,307				(4,983	)
Cash, cash equivalents and restricted cash, beginning of period			23,368				18,918
Cash, cash equivalents and restricted cash, end of period		$	31,675			$	13,935
Supplemental cash flow information:
Cash paid for income tax		$	303			$	29
Cash paid for interest		$	982			$	1,079
Non-cash Transaction in Investing and Financing Activities
Liabilities settled for purchase of property and equipment		$	(1,241	)		$	(7,398	)
Operating lease right-of-use assets obtained in exchange for operating lease liabilities		$	1,725			$	3,396
Reclassification of deferred issuance costs		$	81			$	-
Reconciliation to amount on consolidated balance sheets:
Cash and cash equivalents		$	29,082			$	12,583
Restricted cash			2,593				1,352
Total cash, cash equivalents and restricted cash		$	31,675			$	13,935

 

The accompanying notes are an integral part of these consolidated financial statements.

 

F-5

 

 

SHENGFENG DEVELOPMENT LIMITED

 

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

(All amounts in thousands of USD, except for share and per share data, unless otherwise noted)

 

1.	ORGANIZATION AND NATURE OF OPERATIONS

 

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

 

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

 

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

 

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

 

F-6

 

 

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

 

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

 

F-7

 

 

Name of subsidiaries		Place of incorporation		Date of incorporation or acquisition		Percentage of direct or indirect			Principal activities
Shengfeng Logistics (Yunnan) Co., Ltd.		Yunnan, the PRC		January 25, 2016		100	%		Transportation and warehouse storage management service
Shengfeng Logistics (Guangxi) Co., Ltd.		Guangxi, the PRC		February 1, 2016		100	%		Transportation and warehouse storage management service
Hubei Shengfeng Logistics Co., Ltd.		Hubei, the PRC		December 15, 2010		100	%		Transportation and warehouse storage management service
Shengfeng Logistics Group (Shanghai) Supply Chain Management Co., Ltd.		Shanghai, the PRC		August 26, 2015		100	%		Transportation and warehouse storage management service
Shanghai Shengxu Logistics Co., Ltd.		Shanghai, the PRC		June 4, 2003		100	%		Transportation and warehouse storage management service
Hangzhou Shengfeng Logistics Co., Ltd.		Zhejiang, the PRC		June 10, 2010		100	%		Transportation and warehouse storage management service
Nanjing Shengfeng Logistics Co., Ltd.		Jiangsu, the PRC		August 30, 2011		100	%		Transportation and warehouse storage management service
Suzhou Shengfeng Logistics Co., Ltd.		Jiangsu, the PRC		January 14, 2005		90	%		Transportation and warehouse storage management service
Suzhou Shengfeng Supply Chain Management Co., Ltd. (a)		Jiangsu, the PRC		August 9, 2019		100	%		Transportation and warehouse storage management service
Shengfeng Supply Chain Management Co., Ltd.		Fujian, the PRC		June 19, 2014		100	%		Transportation and warehouse storage management service
Fuzhou Shengfeng Transportation Co., Ltd.		Fujian, the PRC		April 18, 2019		100	%		Transportation and warehouse storage management service
Sichuan Shengfeng Logistics Co., Ltd.		Sichuan, the PRC		June 27, 2019		100	%		Transportation and warehouse storage management service
Fujian Shengfeng Logistics Co., Ltd.		Fujian, the PRC		April 2, 2020		100	%		Transportation and warehouse storage management service
Fujian Dafengche Information Technology Co. Ltd.		Fujian, the PRC		August 26, 2020		100	%		Software engineering
Ningde Shengfeng Logistics Co. Ltd.(b)		Fujian, the PRC		November 12, 2018		51	%		Transportation and warehouse storage management service
Fujian Fengche Logistics Co., Ltd. (c)		Fujian, the PRC		October 28, 2020		0	%		Transportation service
Shengfeng Logistics (Zhejiang) Co., Ltd.		Zhejiang, the PRC		February 1, 2021		100	%		Transportation and warehouse storage management service
Chengdu Shengfeng Supply Chain Management Co., Ltd.		Chengdu, the PRC		October 12, 2021		100	%		Supply chain management service
Shengfeng Logistics Group (Ningde) Supply Chain Management Co., Ltd. (d)		Fujian, the PRC		September 23, 2022		100	%		Supply chain management service
Significant subsidiaries of Tianyu:
Yichun Shengfeng Logistics Co., Ltd. (e)		Jiangxi, the PRC		December 1, 2022		100	%		Transportation and warehouse storage management service
Fujian Shengfeng Smart Technology Co., Ltd. (f)		Fujian, the PRC		April 20, 2023		100	%		Property management service
Shenzhen Tianyu Shengfeng Supply Chain Management Co., Ltd. (g)		Shenzhen, the PRC		May 19, 2023		100	%		Supply chain management service
Fujian Pingtan Tianyu Shengfeng Technology Co., Ltd(h)		Fujian, the PRC		September 27, 2023		100	%		Supply chain management service

 

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

 

F-8

 

 

(b)

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

 

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

 

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

 

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

 

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

 

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

 

(h)

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

 

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

The accompanying unaudited condensed 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 U.S. Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

 

In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2023 and 2022 are not necessarily indicative of the results that may be expected for the full year. The information included in this interim report should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto included in Shengfeng’s annual financial statements for the fiscal year ended December 31, 2022 filed with the SEC on May 1, 2023.

 

Principles of Consolidation

 

The unaudited condensed consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE and the 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, the VIE and the 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.

 

F-9

 

 

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, the VIE and the 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, allowance 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.

 

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 loss amounted to $9,500 and $5,609 as of June 30, 2023 and December 31, 2022, respectively. The balance sheet amounts, with the exception of shareholders’ equity, at June 30, 2023 and December 31, 2022 were translated at RMB7.2258 and RMB6.9646, respectively. The shareholders’ equity accounts were stated at their historical rates. The average translation rates applied to the statement of income accounts for the six months ended June 30, 2023 and 2022 were RMB6.9291 and RMB6.4835 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 and cash equivalents

 

Cash and cash equivalents represent 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 mainland of China. Cash balances in bank accounts in mainland China are insured by the People’s Bank of China Financial Stability Department (“FSD”) while there is a RMB 500,000 deposit insurance limit for a legal entity’s aggregated balance at each bank. As of June 30, 2023 and December 31, 2022, the Company has approximately $29.1 million and $21.3 million, respectively, of cash in banks, most held in the banks located in the mainland of China. Most of cash balances as of June 30, 2023 and December 31, 2022 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 balances in designated bank accounts as security for payment processing and lawsuits. 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. 

 

F-10

 

 

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 their fair value as of June 30, 2023 and December 31, 2022 as the interest rates applied reflect the current market yield for comparable financial instruments.

 

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 will update it if necessary. The allowance for doubtful accounts was approximately $2.8 million and $3.1 million as of June 30, 2023 and December 31, 2022, respectively.

 

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

 

F-11

 

 

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 six months ended June 30, 2023 and 2022.

 

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 fees, consulting fees related to the registration preparation, SEC filings 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 unaudited condensed consolidated financial statements for the six months ended June 30, 2023 and 2022 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 

 

F-12

 

 

The Company generates revenues from providing transportation services and warehouse storage management services. No practical expedients were used when adoption of ASC 606 occurred. 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’ orders. 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 management services

 

The Company derives revenue from the warehouse storage management services provided to third-party companies, including handling services, security and other services. The promised services in each warehouse 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 customers with warehouse storage management services during the service period. Service fees 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 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. U.S. GAAP requires us to evaluate, using a control model, whether the Company itself promises to provide services to the customers (as a principal) or it will 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 its 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 June 30, 2023 and December 31, 2022.

 

F-13

 

 

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 $0.9 million and $0.8 million for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023 and December 31, 2022, contract liabilities amounted to approximately $1.2 million and $1.1 million, respectively.

 

Disaggregated information of revenues by services:

 

		Six Months Ended June 30,
		2023				2022
Revenues:
Transportation		$	173,989			$	154,614
Warehouse storage management service			9,315				10,591
Others			1,667				1,333
Total revenues		$	184,971				166,538

 

As of June 30, 2023 and December 31, 2022, the Company had outstanding contracts for providing transportation and warehouse management services amounting to approximately $1.2 million and $1.0 million, all of which is expected to be completed within 12 months from June 30, 2023 and December 31, 2022, 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:

 

		Six Months Ended June 30,
		2023				2022
Fujian		$	115,246			$	95,174
Beijing			14,189				15,701
Sichuan			9,986				7,683
Zhejiang			7,646				8,011
Shandong			7,410				6,295
Others			30,494				33,674
Total		$	184,971				166,538

 

Leases

 

The Company has elected the package of practical expedients permitted which allows the Company not to reassess the following at the 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.

 

F-14

 

 

The Company determines whether an arrangement is or contains 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”)

 

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 the PRC remain subject to examination by the tax authorities for five years from the date of filing.

 

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.

 

F-15

 

 

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 six months ended June 30, 2023 and 2022. All of the tax returns of the Company’s subsidiaries in the PRC remain subject to examination by the tax authorities for five years from the date of filing.

 

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) 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 U.S. 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

 

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 six months ended June 30, 2023 and 2022, 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

 

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 June 30, 2023 and December 31, 2022, approximately $31.7 million and $23.4 million were deposited with financial institutions located in the PRC, respectively, where there is a RMB500,000 deposit insurance limit for a legal entity's aggregated balance at each bank. As a result, the amounts not covered by deposit insurance were $29.1 million and $22.2 million as of June 30, 2023 and December 31, 2022, respectively.

 

F-16

 

 

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 3.75% in the six months ended June 30, 2023 from December 31, 2022 to June 30, 2023 and depreciated by 9.24% from December 31, 2021 to December 31, 2022. 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 represented greater than 10% of the total revenue of the Company in any of the periods presented.

 

For the six months ended June 30, 2023, Fujian Jinwang Yuntong Logistics Technology Co., Ltd. contributed approximately 28.8% of total cost of revenue of the Company. For the six months ended June 30, 2022, Anhui Luge Transportation Co., Ltd. and Fujian Jinwang Yuntong Logistics Technology Co., Ltd contributed approximately 13.9% and 12.8% of total cost of revenue of the Company, respectively. 

 

As of June 30, 2023 and December 31, 2022, no customers accounted more than 10% of the account receivables.

 

As of June 30, 2023, no supplier contributed more than 10% of total account payable balances. As of December 31, 2022, Fujian Jinwang Yuntong Logistics Technology Co., Ltd., contributed approximately 13.4% of total account payable balances.

 

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

 

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.

 

F-17

 

 

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

 

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 adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. 

 

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.

 

F-18

 

 

In June 2022, the FASB issued ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The update clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The update also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The update also requires certain additional disclosures for equity securities subject to contractual sale restrictions. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. As an emerging growth company, the standard is effective for the Company for the year ended December 31, 2025. The Company is in the process of evaluating the impact of the new guidance on its 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.

 

3.	Accounts receivable, net

 

Accounts receivable, net consisted of the following:

 

		As of June 30, 2023				As of December 31, 2022
Accounts receivable		$	78,557			$	92,225
Less: Allowance for doubtful accounts			(2,783	)			(3,115	)
Total		$	75,774			$	89,110

 

Movement of allowance of doubtful accounts

 

		Six Months Ended June 30, 2023				Year Ended December 31, 2022
Beginning balance		$	3,115			$	2,398
(Recovery of) provision for doubtful accounts			(16	)			1,130
Written-off			(213	)			(178	)
Exchange rate effect			(103	)			(235	)
Ending balance		$	2,783			$	3,115

 

4.	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 June 30, 2023				As of December 31, 2022
Land use rights (a)		$	13,806			$	8,011
Licensed software			1,997				2,133
Subtotal			15,803				10,144
Less: accumulated amortization			(3,566	)			(3,433	)
Intangible assets, net		$	12,237			$	6,711

 

(a)

In January 2022, the Company signed an agreement with Ningde City government to purchase a land use right for approximately $5.9 million (RMB 42,690,000) and the prepayment was made to the local government accordingly. The Company obtained certificate of land-use right and the transaction was completed in June 2023. The prepaid balance was transferred from other non-current assets to intangible assets. The term of the land use right is 50 years from 2023 to 2073.

 

F-19

 

 

As of June 30, 2023 and December 31, 2022, land use rights with net book value amounted to approximately $2.5 million and $2.6 million, respectively, were pledged for obtaining various of loans (See Note 7 Short-term bank loans).

 

Amortization expenses for the six months ended June 30, 2023 and 2022, amounted to approximately $0.3 million and $0.3 million, respectively.

 

The future amortization for the intangible assets is expected to be as follows:

 

Twelve months ending June 30,		Estimated amortization expense
2023		$	637
2024			531
2025			424
2026			403
2027			358
Thereafter			9,884
Total		$	12,237

 

5.	Related party transactions

 

The table below sets forth the major related parties and their relationships with the Company as of June 30, 2023 and December 31, 2022, and for the six months ended June 30, 2023 and 2022

 

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
Yongteng Liu		CEO’s brother

 

i)	Significant transactions with related parties were as follows:

 

		Six Months Ended June 30,
		2023				2022
Transportation services to Fujian Bafang		$	-			$	18
Total		$	-				18

 

		Six Months Ended June 30,
		2023				2022
Transportation services from Fujian Bafang		$	472			$	431
Lease services from Fuzhou Tianyu		$	109			$	152

 

F-20

 

 

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 7).

 

iii)	Significant balances with related parties were as follows:

  

		As of June 30, 2023				As of December 31, 2022
Due from related parties
Fuzhou Tianyu		$	41			$	42
Total		$	41			$	42

 

		As of June 30, 2023				As of December 31, 2022
Due to related parties
Fujian Bafang (a)		$	1,416			$	1,694
Fuzhou Tianyu			123				84
Fuzhou Tianyu Management			34				36
Yongteng Liu			-				600
Total		$	1,573			$	2,414

 

(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.

 

6.	Notes payables

 

		As of June 30, 2023				As of December 31, 2022
Bank acceptance notes payable issued by Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch (a)		$	1,107			$	2,046
Commercial acceptance notes payable guaranteed by China Minsheng Bank Fuzhou Branch (b)			8,304				-
Total		$	9,411			$	2,046

 

(a)

On March 20, 2023, Shanghai Pudong Development Bank Co., Ltd. issued bank acceptance notes payable of approximately $1.1 million (RMB8.0 million) to the Company with due date on September 30, 2023. The Company was required to maintain restricted cash deposits of approximately $0.3 million (RMB2.4 million) in such bank, in order to ensure future credit availability. These notes were fully paid upon maturity and the restricted deposit was also released upon the note repayments.

 

F-21

 

 

(b)

In February 2023, the Company issued commercial acceptance notes payable of approximately $8.3 million (RMB60.0 million) and guaranteed by China Minsheng Bank Fuzhou Branch with a due date on February 6, 2024. The commercial acceptance notes were collateralized by the real estate property valued at approximately $8.0 million and the land use rights for the property located at Dapu village, Honglu street, Fuqing City, Fuzhou City, Fujian Province, PRC, valued at approximately $0.9 million, owned by the Company and were further guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and his brother, Yongteng Liu.

 

7.	Short-term bank loans

 

The following table presents short-term bank loans from commercial banks as of June 30, 2023 and December 31, 2022:

 

		As of June 30, 2023				As of December 31, 2022
China Minsheng Bank Fuzhou Branch		$	-			$	10,769
Bank of China Fuzhou Jin’an Branch			11,071				11,487
China Merchant Bank Fuzhou Branch			8,996				10,769
Xiamen International Bank Co., Ltd. Fuzhou Branch			6,920				7,179
Haixia Bank of Fujian Fuzhou Jin’an Branch			1,384				1,436
Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch			1,384				1,436
Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch			1,384				1,436
Industrial Bank Fuzhou Huqian Sub Branch			830				861
Industrial Bank Fuzhou Branch			1,370				1,421
China Everbright Bank Co., Ltd Fuzhou Tongpan Branch			830				861
Guangxi Beibu Gulf Bank Nanning Branch			692				-
Total		$	34,861			$	47,655

 

As of June 30, 2023 and December 31, 2022, the total short-term bank borrowings balance of the Company was approximately $34.9 million and $47.7 million, respectively. The short-term bank loans outstanding carried a weighted average interest rate of approximately 4.08% and 4.64% per annum for the six months ended June 30, 2023 and 2022, 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 (RMB37.0 million) and a facility of up to approximately $5.96 million (RMB38.0 million) were made available to the Company, at a fixed interest rate of 4.35% per annum. These short-term loans were collateralized by the real estate property valued at approximately $8.4 million and the land use rights for the property located at Dapu village, Honglu street, Fuqing City, Fuzhou City, Fujian Province, PRC, valued at approximately $1.0 million, owned by the Company and were further guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and his brother, Yongteng Liu.

 

The $5.8 million (RMB37.0 million) loan matured on September 10, 2022 and the $5.96 million (RMB38.0 million) loan matured on September 22, 2022. The Company made early repayment for the loans of approximately $5.8 million (RMB37.0 million) on July 7, 2022, $2.82 million (RMB18.0 million) on July 14, 2022 and $3.14 million (RMB20.0 million) on July 18, 2022.

 

After the repayment, the Company obtained additional loans of approximately $5.3 million (RMB37.0 million) on July 7, 2022, $2.6 million (RMB18.0 million) on July 14, 2022 and $2.9 million (RMB20.0 million) on July 18, 2022 at a fixed interest rate of 4% per annum.

 

F-22

 

 

The aforementioned loans were repaid on maturity on February 7, February 14 and February 18, 2023. After repayment of the loans of $10.8 million (RMB75 million), the Company obtained the note payable amounted $8.3 million (RMB60.0 million) issued by the same bank on February 17, 2023 and to paid to its suppliers on February 20, 2023. (See Note 6).

   

Bank of China Fuzhou Jin’an Branch

 

On June 28, 2021, the Company entered into a short-term loan facility agreement with Bank of China Fuzhou Jin’an Branch pursuant to which a total facility of up to approximately $12.3 million (RMB80.0 million) was made available to the Company at a fixed interest rate of 4.35% per annum. Loans from this facility are collateralized by the real estate property and the land use rights, amounted to approximately $9.8 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 1; and (ii) the financing exposure balance shall be no more than approximately $61.3 million (RMB 400,000,000) or 25% of the annual revenue. If the Company fails to meet either of the financial covenants, the total loan facility available will be reduced to approximately $7.7 million (RMB50 million). On July 14, July 21 and August 10, 2021, the Company drew down approximately $2.6 million (RMB17.0 million), $3.1 million (RMB20.0 million) and $4.6 million (RMB30.0 million) loans from this facility, respectively. On March 21, 2022, the Company obtained approximately $1.9 million (RMB13.0 million) under this credit line.

 

The Company made early repayment for the loans of approximately $2.6 million (RMB17.0 million) on May 18, 2022, $3.0 million (RMB20.0 million) on June 15, 2022 and $4.6 million (RMB30.0 million) on June 7, 2022. After the repayment, the Company obtained additional loans of approximately $2.4 million (RMB 17.0 million) on May 26, 2022, $4.3 million (RMB30.0 million) on June 13, 2022, and $2.9 million (RMB20.0 million) on June 23, 2022, under the same loan facility agreement entered in June 2021.

 

The aforementioned loan’s maturity 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 and benefited from the special refinancing policy for the transportation and logistics industry created by the People’s Bank of China and the Ministry of Transport, and the new interest rate was effective from the date of the contracts. On March 21, 2023, April 24, 2023, May 4, 2023, May 9, 2023, June 9, 2023, June 13, 2023 and June 19, 2023, the Company repaid approximately $1.9 million (RMB13.0 million) and $0.1 million (RMB 1.0 million), $2.3 million (RMB 16.0 million), $0.1 million (RMB1.0 million), $2.8 million (RMB19.0 million), $1.6 million (RMB11.0 million) and $2.8 million (RMB19.0 million) to the bank, respectively..

 

On March 15, 2023, the Company entered into a short-term loan facility agreement with Bank of China Fuzhou Jin’an Branch pursuant to which a total facility of up to approximately $11.1 million (RMB80.0 million) was made available to the Company. The loan facility term is from March 15, 2023 to September 1, 2023. Loans from this facility are collateralized by the real estate property and the land use rights, amounted to approximately $8.1 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 $55.4 million (RMB 400,000,000) 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, May 5, 2023, June 9, 2023 and June 20, 2023, the Company drew down approximately $1.8 million (RMB13.0 million), $2.4 million (RMB17.0 million), $2.8 million (RMB20.0 million) and $4.2 million (RMB30.0 million) under this line at a fixed interest rate of 2.5% per annum.

 

As of June 30, 2023, loan balance under such short-term loan facility was approximately $11.1 million (RMB80.0 million), fully withdrawn by the Company.

 

China Merchant Bank Fuzhou Branch

 

On December 24, 2021, the Company entered into a short-term loan facility agreement with China Merchant Bank Fuzhou Branch to replace a prior agreement with aggregate principal amount of approximately $9.2 million (RMB60.0 million). Pursuant to such new agreement, a total facility of up to an aggregate principal amount of approximately $11.6 million (RMB75.0 million) was made available to the Company. The loan facility is available for the Company to withdraw 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 property 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. The unpaid balance of original loan was approximately $9.3 million (RMB60.0 million) at the time of entering new agreement, which consisted of approximately $4.6 million (RMB30.0 million) received on August 3, 2021, $3.1 (RMB20.0 million) received on August 26, 2021 and $1.6 million (RMB10.0 million) received on September 7, 2021.

 

F-23

 

 

On January 14 and 21, 2022, approximately $2.3 million (RMB15.0 million) and $2.3 million (RMB15.0 million) were repaid by the Company, which loans were originally obtained in August 3, 2021. On January 14 and 21, 2022, the Company drew down approximately $2.4 million (RMB17.0 million) and $2.2 million (RMB15.0 million) of loans under this 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 (RMB17.0 million) and $2.2 million (RMB15.0 million) to the bank, respectively. After the repayments were made, the Company drew down approximately $2.3 million (RMB16.0 million) and $3.0 million (RMB21.0 million) of loans under this loan facility with an interest rate of 4.30% per annum. On June 15, 2023, the Company repaid approximately $5.3 million (RMB37.0 million) to the bank.

 

On January 28, February 28 and March 17, 2022, approximately $2.3 million (RMB15.0 million), $0.8 million (RMB5.0 million) and $1.5 million (RMB10.0 million) were repaid by the Company, respectively, which were the loans originally obtained in August 26 and September 7, 2021. On February 22, March 8 and April 12, 2022, the Company drew down approximately $1.4 million (RMB10.0 million), $0.7 million (RMB5.0 million) and $1.4 million (RMB10.0 million) of loans, respectively, under this loan facility with an interest rate of 4.50% per annum. On December 19, 2022, the Company repaid approximately $1.4 million (RMB10.0 million), $0.7 million (RMB5.0 million) and $1.4 million (RMB10.0 million) to the bank.

 

After the repayments were made, the Company drew down approximately $3.6 million (RMB25.0 million) on December 19, 2022 under this loan facility with an interest rate of 4.30% per annum before January 11, 2023, after January 11, 2023, the interest rate was reduced to 4.05% per annum according to the agreement. On December 22, 2022, the Company drew down approximately $1.4 million (RMB10.0 million) of loans under this new loan facility. On June 19, 2023 and June 21, 2023, the Company repaid $3.6 million (RMB25.0 million) and $1.4 million (RMB10.0 million), respectively.

 

On January 14, 2022, Fujian Shengfeng Logistics Co., Ltd. drew down approximately $1.5 million (RMB10.0 million) of loan with an interest rate of 4.50% per annum. On December 21, 2022, the Company repaid approximately $1.5 million (RMB10.0 million) to the bank.

 

On January 14, 2022, Fuqing Shengfeng Logistics Co., Ltd. drew down approximately $0.5 million (RMB3.0 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 (RMB3.0 million) to the bank. After the repayments were made. On December 21, 2022, Fuqing Shengfeng Logistics Co., Ltd. drew down approximately $0.4 million (RMB3.0 million) of loans under this loan facility with an interest rate of 4.30% per annum. On June 19, 2023, Fuqing Shengfeng Logistics Co., Ltd. repaid $0.4 million (RMB3.0 million).

 

On June 5, 2023, 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 2021. Pursuant to such new short-term loan facility agreement, a total facility of up to an aggregate principal amount of approximately $10.4 million (RMB75.0 million) was made available to the Company. The loan facility available for the Company to withdraw from June 5, 2023 to June 4, 2025. The short-term loans that may be drawn under this loan facility are collateralized by the real estate property valued at approximately $1.7 million (RMB12.3 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 $0.8 million (RMB6.0 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.

 

F-24

 

 

On June 15, 2023 and June 19, 2023, the Company drew down approximately $5.1 million (RMB37.0 million) and $2.1 million (RMB15.0 million) of loans under this new loan facility with an interest rate of 4.00% per annum, respectively.

 

On June 19, 2023, the Company drew down approximately $1.8 million (RMB13.0 million) of loans under this loan facility with an interest rate of 3.70% per annum respectively.

 

As of June 30, 2023, loan balance under such short-term loan facility was approximately $9.0 million (RMB65.0 million) and approximately $1.4 million (RMB 10.0 million) of the remaining credit line was available for the Company to withdraw.

 

On September 12, 2023, the Company drew down approximately $1.4 million (RMB10.0 million) of loan with an interest rate of 3.70% per annum.

 

Xiamen International Bank Co., Ltd. Fuzhou Branch

 

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 (RMB30.0 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). On August 19, 2021, the Company drew down approximately $4.3 million (RMB30.0 million) of loan at a fixed interest rate of 5.6% per annum. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company., the loan was fully repaid on August 9, 2022. On August 12, 2022, the Company drew down approximately $4.3 million (RMB30.0 million) of loan at a fixed interest rate of 5.6% per annum, On August 12, 2023, the Company fully repaid this loan.

 

As of June 30, 2023, loan balance under such short-term loan facility was approximately $4.3 million (RMB30.0 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 (RMB20.0 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 (RMB20.0 million) of the loan at a fixed interest rate of 5.5% per annum. 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 (RMB20.0 million) to the bank. On April 17, 2023, the Company drew down approximately $2.8 million (RMB20.0 million) of the loan at a fixed interest rate of 5.5% per annum.

 

As of June 30, 2023, loan balance under such short-term loan facility was approximately $2.8 million (RMB20 million).

 

Haixia Bank of Fujian Fuzhou Jin’an Branch

 

On April 2, 2021, the Company entered into a loan agreement with Haixia Bank of Fujian Fuzhou Jin’an Branch for a principal amount of approximately $1.5 million (RMB 10.0 million) at a fixed interest rate of 5.5% per annum. On December 14, 2021, the Company made early repayment of approximately $0.75 million (RMB5.0 million) to the bank. 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 (RMB10.0 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 Fuzhou Shengfeng Transportation Co., Ltd.. The Company received the loan proceeds on July 13, 2022 and fully repaid approximately $1.4 million (RMB10.0 million), subsequently, on July 7, 2023.

 

F-25

 

 

On September 26, 2023, the Company entered into a short-term facility agreement with Haixia Bank of Fujian Fuzhou Jin’an Branch, pursuant to which a total facility of up to approximately $1.4 million (RMB10.0 million) was made available to the Company. The loan facility is available for the Company to withdraw from September 26, 2023 to September 26, 2024. The loan facility 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 loan facility was further collateralized by 6 motor vehicles under Fuzhou Shengfeng Transportation Co., Ltd. On September 27, 2023, the Company drew down approximately $1.4 million (RMB10.0 million) of the loan at a fixed interest rate of 4.0% per annum.

 

Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch

 

In November 2021, 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 (RMB10.0 million) at a fixed interest rate of 5.50% 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. The 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 matured 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 (RMB 10.0 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 Sub-Branch

 

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 (RMB10.0 million). On March 26, 2021, Fuqing Shengfeng Logistics Co., Ltd. drew down approximately $0.9 million (RMB6.0 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 (RMB6.0 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 matured on January 21, 2023 and was repaid in full on January 28, 2023. 

 

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 (RMB6.0 million) with repayment date on January 18, 2024. On February 7, 2023, Fuqing Shengfeng Logistics Co., Ltd. drew down approximately $0.8 million (RMB6.0 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.

 

F-26

 

 

As of June 30, 2023, the loan balance under such short-term loan facility was approximately $0.8 million (RMB6.0 million).

 

Industrial Bank 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 (RMB10.0 million) at a fixed interest rate of 4.35% per annum. Approximately $1.4 million (RMB9.0 million) and $0.2 million (RMB1.0 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 (RMB10.0 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 (RMB9.0 million) and $0.1 million (RMB1.0 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 June 30, 2023, loan balance under such short-term loan facility was approximately $1.4 million (RMB 9.9 million) and RMB 0.1 million of the remaining credit line was available for the Company to withdraw.

 

China Everbright Bank Co., Ltd Fuzhou Tongpan Branch

 

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 (RMB6.0 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 approximately $0.9 million (RMB6.0 million) were received by the Company on January 19, 2022.

 

On January 9, 2023, the Company repaid approximately $0.9 million (RMB6.0 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 $0.8 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 $0.8 million (RMB6.0 million) were received by the Company on January 9, 2023. Subsequently on July 7, 2023, Fuqing Shengfeng Logistics Co., Ltd. repaid approximately $0.8 million (RMB6.0 million) to the bank.

 

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 (RMB5.0 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 $0.7 (RMB5.3 million). On July 14, 2023, Shengfeng Logistics Guangxi Co., Ltd. fully repaid this loan.

 

F-27

 

 

For the six months ended June 30, 2023 and 2022, the interest expenses for the above short-term bank loans totaled approximately $0.8 million and $1.1 million, respectively.

 

As of June 30, 2023, the Company had an aggregate credit line of approximately $36.3 million (RMB262.0 million) and approximately $34.9 million (RMB251.9 million) was used. 

 

8.

Leases

 

Operating leases as lessee

 

As of June 30, 2023 and December 31, 2022, the Company has operating leases recorded on its consolidated balance sheets for certain office spaces and warehouses that expire on various dates through 2032. 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 June 30, 2023				As of December 31, 2022
Assets
Operating lease right-of-use assets, net		$	21,130			$	27,880
Liabilities
Operating lease liabilities, current		$	7,382			$	9,634
Operating lease liabilities, non-current		$	13,401			$	17,507
Weighted average remaining lease term (in years)			5.9				5.1
Weighted average discount rate (%)			5.82				5.78

 

Information related to operating lease activities during the six months ended June 30, 2023 and 2022 are as follows:

 

		Six months ended June 30,
		2023				2022
Operating lease right-of-use assets obtained in exchange for lease liabilities		$	1,725			$	3,396
Operating lease expense
Amortization of right-of-use assets			4,515				4,381
Interest of lease liabilities			694				859
Total		$	5,209			$	5,240

 

F-28

 

 

Maturities of lease liabilities were as follows:

 

		Lease Liabilities
Twelve months ending June 30,
2024		$	7,598
2025			5,314
2026			3,592
2027			1,841
2028			1,705
Thereafter			3,845
Total lease payments			23,895
Less: imputed interest			(3,112	)
Total		$	20,783

 

9.

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 subsidiary incorporated in Hong Kong is subject to 16.5% on its taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiary 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, the VIE and the 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 $0.5 million and $0.2 million for the six months ended June 30, 2023 and 2022, respectively and the impact to EPS is not significant for the six months ended June 30, 2023 and 2022.

 

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 is renewing the HNTEs. 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% to 5% are applied to these entities.

 

F-29

 

 

i)	The components of income before income taxes are as follows:

 

		Six months ended June 30,
		2023				2022
Non-PRC		$	(252	)		$	-
PRC			8,124				2,826
Total		$	7,872			$	2,826

 

ii)	The components of the income tax provision are as follows:

 

		Six months ended June 30,
		2023				2022
Current		$	709			$	484
Deferred			700				(113	)
Total		$	1,409			$	371

 

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 six months ended June 30, 2023 and 2022:

 

		Six months ended June 30,
		2023				2022
PRC statutory income tax rate			25.0	%			25.0	%
Effect of preferential tax rates (1)			(5.7	)%			(6.9	)%
Eligible additional deduction			(2.9	)%			(5.5	)%
Impact of different tax rates in other jurisdictions			0.8	%			-	%
Non-taxable and exemptions			(0.5	)%			-	%
Permanent differences (2)			1.2	%			0.5	%
Effective income tax rate			17.9	%			13.1	%

 

(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.

 

F-30

 

  

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 June 30, 2023				As of December 31, 2022
Deferred tax assets:
Net operating losses carryforward		$	1,573			$	2,300
Allowance for doubtful accounts			793				874
Deferred income (a)			266				279
Intangible assets (b)			137				134
Subtotal			2,769				3,587
Less: valuation allowance			-				-
Deferred tax assets		$	2,769			$	3,587

 

(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 were provided for the Company’s certain subsidiaries with continuous losses as of June 30, 2023 and December 31, 2022. As of June 30, 2023 and December 31, 2022, there were approximately $6.6 million and $9.5 million net operating loss carryforwards in certain subsidiaries, respectively. The net operating tax loss carryforwards will expire from 2024 to 2028.

 

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 June 30, 2023 and December 31, 2022, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur interests and penalties tax for the six months ended June 30, 2023 and 2022.

 

(b)	Tax payable

 

Tax payable consisted of the following:

 

		As of June 30, 2023				As of December 31, 2022
Value-added tax payable		$	2,487			$	1,828
Income tax payable			568				185
Other taxes payable			147				194
Total		$	3,202			$	2,207

 

F-31

 

 

10.	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 $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 $0.0001 per share.

 

On April 4, 2023, the Company completed its initial public offering (the “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. In connection with the IPO, the Company issued to Univest Securities, LLC, and its affiliates, as the representative of the underwriters, warrants that are 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 Class A Ordinary Shares at a per share price of $4.46.

 

As of June 30, 2023 and December 31, 2022, 40,520,000 and 38,120,000 Class A Ordinary shares were issued and outstanding, respectively; 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

 

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 $4.0 million as of June 30, 2023 and December 31, 2022, 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 the “Shengfeng PRC entities”) only out of 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 their registered capital. In addition, Shengfeng PRC entities may allocate a portion of their after-tax profits based on PRC accounting standards to enterprise expansion fund and staff bonus and welfare fund at their discretion. Shengfeng PRC entities may allocate a portion of their after-tax profits based on PRC accounting standards to a discretionary surplus fund at their 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.

 

F-32

 

 

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 regulations 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 June 30, 2023 and December 31, 2022, amounts restricted are the paid-in-capital and statutory reserve of Shengfeng PRC entities, which amounted to approximately $79.6 million and $79.6 million, respectively.

 

11.	Commitments and contingencies

 

(a)	Lease commitments

 

The Company’s commitment for minimum lease payments under the remaining operating leases as of June 30, 2023 is $2.7 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 June 30, 2023, 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 (RMB 7.1 million) was frozen in bank due to the pending lawsuits, which was included in restricted cash as of June 30, 2023. As of the date of this unaudited condensed consolidated financial statements, the above-mentioned amount is still frozen in bank and the other legal proceedings or disputes have no material impact on the Company’s business or financial performances. 

 

12.	Subsequent events

 

The Company has evaluated the impact of events that have occurred subsequent to June 30, 2023, through the issuance date of unaudited condensed consolidated financial statements, and concluded that no subsequent events have occurred that would require recognition in the unaudited condensed consolidated financial statements or disclosure in the notes to unaudited condensed consolidated financial statements.

 

 

F-33

 

Exhibit 99.2

 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

 

You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and the related notes. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of various factors. 

 

A. Operating Results

 

Overview

 

We are a holding company incorporated in the Cayman Islands and are not a Chinese operating company. As a holding company with no material operations of our own, our operations have been conducted in China by our subsidiaries and through the VIE Agreements, with the VIE and the VIE’s subsidiaries. For accounting purposes, we control and receive the economic benefits of the VIE and the VIE’s subsidiaries’ business operations through such VIE Agreements, which enables us to consolidate the financial results of the VIE and the VIE’s subsidiaries in our consolidated financial statement under U.S. GAAP. Neither we nor our subsidiaries own any equity interests in the VIE or the VIE’s subsidiaries. We have evaluated the guidance in FASB ASC 810 and determined that we are regarded as the primary beneficiary of the VIE, for accounting purposes, as a result of our direct ownership in Tianyu and the provisions of the VIE Agreements. Accordingly, we treat the VIE and the VIE’s subsidiaries as our consolidated entities under U.S. GAAP. We have consolidated the financial results of the VIE and the VIE’s subsidiaries in our consolidated financial statements in accordance with U.S. GAAP. 

 

Our Class A Ordinary Shares are shares of our offshore holding company in the Cayman Islands instead of shares of the VIE or the VIE’s subsidiaries in China, therefore, as an investor, you will not directly hold equity interests in the VIE or the VIE’s subsidiaries, and you may never directly hold equity interests in the VIE or the VIE’s subsidiaries through your investment in our Class A Ordinary Shares. For a description of the VIE Agreements, see “Corporate History and Structure—Our VIE Agreements.”

 

The VIE is a contract logistics service provider in China. Contract logistics is a comprehensive process that merges traditional logistics with supply chain management. Contract logistics companies outsource resource management tasks to third-party companies and handle activities such as planning and designing supply chains, designing facilities, processing orders, collecting payments, managing inventories, and providing client services.

 

Our integrated logistics solution services are comprised of three segments: (1) B2B freight transportation; (2) cloud storage; and (3) value-added services. Since 2001, we, through the VIE and the VIE’s subsidiaries, have developed extensive and reliable transportation networks in China, covering 341 cities in over 31 provinces as of June 30, 2023.

 

We, through the VIE and the VIE’s subsidiaries, operate on a scalable integrated network model, which we believe is best suited to support our business and maintain the quality of our comprehensive logistics services. As a contract logistics company, we, through the VIE and the VIE’s subsidiaries, directly own and operate all of our regional sorting centers, Cloud OFCs, and service outlets. We, through the VIE and the VIE’s subsidiaries, also directly own and operate our fleets. In order to establish a broader network and provide more efficient services, we, through the VIE and the VIE’s subsidiaries, cooperate with third-party transportation providers in providing freight transportation services. We believe this network model allows us to achieve strong operating results while maintaining and minimizing fixed costs and capital requirements, which results in higher return on earnings and equities.

 

Operational efficiency, cost management, and competitive pricing are critical to the success of a contract logistics company. We, through the VIE and the VIE’s subsidiaries, have achieved strong operational efficiency through centralized control and management of 35 regional sorting centers, 22 Cloud OFCs, 36 service outlets, approximately 490 self-owned trucks and vehicles, and over 40,000 transportation providers, route planning and optimization, and transportation and management system. 

 

For the six months ended June 30, 2023 and 2022, our net revenue, mainly generated from providing transportation and warehouse storage management services, was approximately $185.0 million and $166.5 million, respectively. Our total net revenue increased by approximately 11.1% during the half year of 2023 compared to the same period in 2022, which we believe is due to our stable business development. We recorded net profit of approximately $6.5 million and $2.5 million for the six months ended June 30, 2023 and 2022, respectively.

 

 

 

General Factors Affecting Our Results of Operations

 

Our business and operating results are affected by a number of general factors in China’s transportation industry, including, but not limited to:

 

●

China’s overall economic growth, level of urbanization and level of consumption;

 

●

the development of the manufacturing industry, fast moving consumer goods industry, telecommunication industry, and publishing industry; and

 

●

market competition.

 

Unfavorable changes in any of these general factors could materially and adversely affect our business and our results of operations. 

 

Key Factors Affecting Our Results of Operations 

 

Our ability to expand our customer base 

 

We will continue to seek to expand our customer base to achieve sustainable growth. We aim to attract new customers and maintain our existing customers. We acquire customers for our transportation services through the referral of our existing customers and our own efforts including online and off-line advertising. We plan to strengthen our partnerships by improving the quality and variety of our services. Additionally, we plan to put on more efforts to acquire more warehouse storage management service customers through our existing transportation service customers. 

 

Strategic Acquisitions and Investments 

 

We may selectively pursue acquisitions, investments, joint ventures and partnerships that we believe are strategic and complementary to our operations and technology. The business or financial performance of the companies we have invested in as well as our ability to successfully integrate these investments with our existing business would impact our results of operations and financial conditions. 

 

Results of Operations

 

The following consolidated results of operations include the results of operations of the Company, its wholly owned subsidiaries and consolidated VIE and the VIE’s subsidiaries.

 

The following table summarizes our consolidated results of operations, both in absolute amounts and as percentages of our total net revenue for the periods presented. The operating results in any historical period are not necessarily indicative of the results that may be expected for any future period.

 

For the six months ended June 30, 2023 and 2022

 

		Six Months Ended June 30,
		2023								2022								Change
		(Amount in thousand)				%				(Amount in thousand)				%				(Amount in thousand)				%
Revenue
Transportation		$	173,989				94.1	%		$	154,614				92.8	%		$	19,375				12.5	%
Warehouse storage management services			9,315				5.0	%			10,591				6.4	%			(1,276	)			(12.0	)%
Other revenue			1,667				0.9	%			1,333				0.8	%			334				25.1	%
Net revenue			184,971				100	%			166,538				100	%			18,433				11.1	%
Cost of revenue			(162,195	)			(87.7	)%			(148,296	)			(89.0	)%			(13,899	)			9.4	%
Gross profit		$	22,776				12.3	%		$	18,242				11.0	%		$	4,534				24.9	%

 

2

 

 

Net revenues

 

Transportation services

 

We, through the VIE and the VIE’s subsidiaries, provide transportation services to companies in mainland China. Our major customers are in the manufacturing industry, the fast-moving consumer goods industry, the telecommunication industry, and the publishing industry. Revenue from transportation services is recognized upon customers’ receipt of the transported goods.

 

Warehouse storage management services

 

We, through the VIE and the VIE’s subsidiaries, generate revenue of warehouse storage management services through the provision of warehouse storage management services to various customers. We help companies place the goods and maintain the daily input and output of the goods. We primarily charge our customers service fees for our storage services and the daily management services. Revenue from the warehouse storage management services is recognized over the service period.

 

Our net revenues were approximately $185.0 million for the six months ended June 30, 2023, increasing by approximately 11.1% from approximately $166.5 million for the six months ended June 30, 2022. The increase in our net revenues was primarily driven by the fast growth of e-commerce business in China since the pandemic.

 

Net revenues generated from our transportation services increased by approximately 12.5% from approximately $154.6 million for the six months ended June 30, 2022 to approximately $174.0 million for the six months ended June 30, 2023. The increase was mainly driven by increasing orders from a client in the medical industry, as well as the growth of other existing clients’ businesses.

 

Net revenue generated from our warehouse storage management services decreased by approximately 12.0% from approximately $10.6 million for the six months ended June 30, 2022, to approximately $9.3 million for the six months ended June 30, 2023, primarily due to shutting down redundant warehouses and shift focusing on transportation services for the six months ended June 30, 2023.

 

Cost of revenues

 

Our cost of revenue consists of cost of transportation services and cost of warehouse storage management services. The cost of transportation services comprises cooperation cost (the payments made to third-party transportation providers), depreciation and amortization expenses, toll fees, employee wages and benefits and fuel cost. Cooperation cost is the direct cost of transportation paid by the Company to third-party transportation providers, who are independent contractors and third-party carriers. The cost of warehouse storage management services consists of rental fees, handling fees, employee wages and benefits in connection with our services to our clients.

 

Our cost of revenues was approximately $162.2 million for the six months ended June 30, 2023, increased by approximately 9.4%, from approximately $148.3 million for the six months ended June 30, 2022. Our cost of revenue did not increase proportionately with revenue since we successfully optimized cost structure by outsourcing transport service, reducing redundant departments, and incorporating workforce optimization practices for the six months ended June 30, 2023.

 

3

 

 

Gross profit

 

Our overall gross profit increased by approximately 24.9% from approximately $18.2 million for the six months ended June 30, 2022 to approximately $22.8 million for the six months ended June 30, 2023. For the six months ended June 30, 2023 and 2022, our overall gross margin was approximately 12.3% and 11.0%, respectively. The gross margin increased mainly due to our cost optimization structure by outsourcing transport service, reducing redundant departments, and incorporating workforce optimization practices for the six months ended June 30, 2023. Accordingly, our total revenues had higher proportional increase than the increase in cost of revenues during the same period, led a higher overall gross profit margin.

 

		Six Months Ended June 30,
		2023				2022				Change
		(Amount in thousand)				(Amount in thousand)				(Amount in thousand)				%
Operating expenses
Selling and marketing		$	(3,336	)		$	(3,672	)		$	336				(9.2	)%
General and administrative			(10,976	)			(10,755	)			(221	)			2.1	%
Total operating expenses		$	(14,312	)		$	(14,427	)		$	115				(0.8	)%

 

Operating expenses

 

Our operating expenses decreased by approximately 0.8% from approximately $14.4 million for the six months ended June 30, 2022 to approximately $14.3 million for the six months ended June 30, 2023 for the following reasons:

 

Selling and marketing expenses

 

Our sales and marketing expenses consist primarily of employee wages, rental expenses and benefits for sales and marketing staff, rental expenses, depreciation expenses and other daily expenses which are related to the sales and marketing functions. Selling and marketing expenses decreased by approximately $0.3 million from approximately $3.7 million for the six months ended June 30, 2022, to approximately $3.3 million for the six months ended June 30, 2023, which was attributable to decreased related employee wages and benefits due to workforce optimization practices. 

 

General and administrative expenses

 

Our general and administrative expenses consist primarily of employee wages and benefits for corporate employees, rental expenses, depreciation and amortization expense and other expenses which are related to the general corporate functions.

 

Our general and administrative expenses increased by approximately 2.1% from approximately $10.8 million for the six months ended June 30, 2022 to approximately $11.0 million for the six months ended June 30, 2023, which was attributable to the increase in employee salaries and benefits, due to increased headcount of G&A department.

 

Income from operations

 

As a result of the foregoing, our profit from operations increased by approximately 121.9% from approximately $3.8 million for the six months ended June 30, 2022, to approximately $8.5 million for the six months ended June 30, 2023.

 

		Six Months Ended June 30,
		2023				2022				Change
		(Amount in thousand)				(Amount in thousand)				(Amount in thousand)				%
Other income (expense)
Interest income		$	61			$	40			$	21				52.5	%
Interest expense			(982	)			(1,151	)			169				(14.7	)%
Other income, net			329				122				207				169.7	%
Total other expense, net		$	(592	)		$	(989	)		$	397				(40.1	)%

 

Our total net other expense was approximately $1.0 million for the six months ended June 30, 2022, decreased by approximately $0.4 million or approximately 40.1% to approximately $0.6 million for the six months ended June 30, 2023 for the following reasons:

 

4

 

 

Interest expense

 

Our interest expense decreased by approximately 14.7% from approximately $1.2 million for the six months ended June 30, 2022 to approximately $1.0 million for the six months ended June 30, 2023, as a result of a decreased average balance and interest rate of bank loans during the six months ended June 30, 2023 compared with six months ended June 30, 2022.

 

Other income, net

 

Our other income, net mainly consists of government subsidies, penalties and others. The increase was approximately $0.2 million or 169.7%, which was due to one-time compensation income and gain from disposal of property and equipment.

 

		Six Months Ended June 30,
		2023				2022				Change
		(Amount in thousand)				(Amount in thousand)				(Amount in thousand)				%
Income before income taxes		$	7,872			$	2,826			$	5,046				178.6	%
Provision for income taxes		$	(1,409	)		$	(371	)		$	(1,038	)			279.8	%
Net income		$	6,463			$	2,455			$	4,008				163.3	%

 

Income before income taxes

 

As a result of the foregoing, our income before income taxes increased by approximately $5.0 million or approximately 178.6% to approximately $7.9 million for the six months ended June 30, 2023 from approximately $2.8 million for the six months ended June 30, 2022.

 

Provision for income taxes

 

The effective income tax rate increased from approximately 13.1% for the six months ended June 30, 2022 to approximately 17.9% for the six months ended June 30, 2023. The increase in the effective tax rate was mainly due to increased profit made in subsidiaries that don’t have preferential tax treatment for the six months ended June 30, 2023.

 

Net income

 

As a result of the foregoing, our net income increased by approximately $4.0 million or 163.3% to approximately $6.5 million for the six months ended June 30, 2023 from approximately $2.5 million for the six months ended June 30, 2022.

 

5

 

 

Impact of Foreign Currency Fluctuations

 

The reporting currency of the Company is USD. 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. The foreign currency translation from RMB to USD could materially affect our financial condition and results of operations due to the fluctuation of exchange rate. The exchange rates in effect are shown below:

 

U.S. Dollar Exchange Rate		Six months ended June 30, 2023		Six months ended June 30, 2022		Year ended December 31, 2022
At the end of the period - USD: RMB		US$1=RMB 7.2258		US$1=RMB 6.7114		US$1=RMB 6.9646
Average rate for the period - USD: RMB		US$1=RMB 6.9291		US$1=RMB 6.4835		US$1=RMB 6.7261

 

We did not have any foreign currency investments hedged by currency borrowings or other hedging instruments in the six months ended June 30, 2023 and 2022.

 

B. Liquidity and Capital Resources

 

The PRC government imposes controls on the convertibility of RMB into foreign currencies and, in certain cases, the remittance of currency out of China. Under existing PRC foreign exchange regulations, our PRC subsidiaries are able to pay dividends in foreign currencies to us without prior approval from SAFE. Approval from or registration with appropriate government authorities is, however, required where RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. See “Risk Factors—Governmental control of currency conversion may affect the value of your investment and our payment of dividends” in our annual report on Form 20-F for the year ended December 31, 2022 filed on May 1, 2023.

 

Current PRC regulations permit our PRC subsidiaries to pay dividends to us only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition, our PRC subsidiaries are required to set aside at least 10% of their respective accumulated profits each year, if any, to fund certain reserve funds until the total amount set aside reaches 50% of their respective registered capital. We had various outstanding bank loans of approximately $34.9 million as of June 30, 2023. We have also entered into non-cancellable operating lease agreements for several offices, operating facilities and warehouses. The following table sets forth our contractual obligations as of June 30, 2023:

 

		Payments Due by Period (Amount in thousand)
		Total				Within 1 Year				1-3 Years				3-5 Years				More than 5 Years
Borrowings		$	34,861			$	34,861			$	-			$	-			$	-
Operating leases commitments			23,895				7,598				8,906				3,546				3,845
Total		$	58,756			$	42,459			$	8,906			$	3,546			$	3,845

 

6

 

 

Cash flows and working capital

 

The following table sets forth a summary of our cash flows for the periods indicated:

 

		Six Months Ended June 30,				Six Months Ended June 30,
		2023				2022
		(Amount in thousand)				(Amount in thousand)
Net cash provided by (used in) operating activities		$	8,876			$	(2,610	)
Net cash used in investing activities			(4,464	)			(5,269	)
Net cash flows provided by financing activities			5,127				3,701
Effects of exchange rate changes on cash, cash equivalents and restricted cash			(1,232	)			(805	)
Cash and restricted cash, beginning of period			23,368				18,918
Cash and restricted cash, end of period		$	31,675			$	13,935

 

As a holding company with no material operations of our own, we conduct a substantial majority of our operations through our PRC subsidiaries and the VIE in China. We are permitted under PRC laws and regulations to provide funding to our PRC subsidiaries in China through capital contributions or loans, subject to the approval of government authorities and limits on the amount of capital contributions and loans. Our subsidiaries in China may provide Renminbi funding to the VIE only through loans. Foreign currency capital of a foreign-invested enterprise may be converted into Renminbi capital at its will according to the actual operation of the enterprise, as long as it is within such enterprise’s business scope.

 

Cash flows in Operating Activities

 

For the six months ended June 30, 2023, net cash generated from operating activities was approximately $8.9 million, primarily comprised of net income of approximately $6.5 million and adjusted for non-cash items such as depreciation and amortization expense for property and equipment of approximately $3.3 million, approximately $5.2 million for amortization of right-of-use assets and interest of lease liabilities, decrease of account receivable approximately $10.6 million, increase of accrued expenses and other current liabilities approximately $2.6 million and increased of tax payables approximately $1.1 million. Net cash generated from operating activities was partially offset by approximately $13.3 million decrease in accounts payable, approximately $4.8 million decrease in operating lease liabilities, and approximately $1.2 million increase in prepayments and other current assets.

 

For the six months ended June 30, 2022, net cash used in operating activities was approximately $2.6 million, primarily comprised of net income of approximately $2.5 million and adjusted for non-cash items such as depreciation and amortization expense for property and equipment of approximately $3.6 million, approximately $5.2 million for amortization of right-of-use assets and interest of lease liabilities, the decrease of notes receivable of approximately $1.5 million and the increase of notes payable of approximately $2.5 million in operating activities. Net cash generated from operating activities was offset by approximately $9.6 million decrease in accounts payable, $5.2 million decrease in operating lease liabilities, $1.2 million increase in accounts receivable and $2.5 million increase in prepayments and other current assets.

 

Cash flows in Investing Activities

 

For the six months ended June 30, 2023, net cash used in investing activities was approximately $4.5 million, consisting primarily of cash used to acquire property and equipment of approximately $5.2 million and approximately $0.2 million cash used for purchasing intangible assets, mainly offset by cash proceeds received from disposal of property and equipment of approximately $0.8 million.

 

For the six months ended June 30, 2022, net cash used in investing activities was approximately $5.3 million, consisting primarily of cash used to acquire property and equipment of approximately $5.5 million, mainly offset by cash proceeds received from disposal of property and equipment of approximately $0.3 million.

 

Cash flows in Financing Activities

 

For the six months ended June 30, 2023, net cash provided by financing activities was approximately $5.1 million, consisting primarily of cash proceeds from bank loans of approximately $36.4 million and proceeds from initial public offering of approximately $8.5 million, partially offset by cash repaid for bank loans of approximately $39.3 million. 

 

For the six months ended June 30, 2022, net cash provided by financing activities was approximately $3.7 million, consisting primarily of cash proceeds from bank loans of approximately $29.6 million, partially offset by cash repaid for bank loans of approximately $25.9 million. 

 

7

 

 

Capital Expenditures

 

Our capital expenditures are incurred primarily in connection with the purchase of fixed assets, including electronic equipment, office equipment and vehicles, and intangible assets. Our capital expenditures were approximately $5.4 million and $5.5 million for the six months ended June 30, 2023 and 2022, respectively. Subsequent to June 30, 2023 and as of the date of this filing, there have been no material commitments for capital expenditures. We intend to fund our future capital expenditures with our existing cash balance, proceeds of bank loans and proceeds from the initial public offering.

 

Off-Balance Sheet Commitments and Arrangements

 

We have no off-balance sheet arrangements including arrangements that would affect our liquidity, capital resources, market risk support and credit risk support or other benefits.

 

C. Research and Development, Patents and Licenses, etc.

 

See “Business—Research and Development”, “Business—Our Technology Infrastructure” and “Business Overview—Property” in our amendment to Form F-1 filed August 18, 2023.

 

D. Trend Information

 

Other than as described elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material adverse effect on our revenue, income from continuing operations, profitability, liquidity or capital resources, or that would cause our reported financial information not necessarily to be indicative of future operating results or financial condition.

 

E. Critical Accounting Estimates

 

We prepare our consolidated financial statements in accordance with U.S. GAAP, which requires us to make judgments, estimates and assumptions. To the extent that there are material differences between these estimates and actual results, our financial condition or results of operations would be affected. We base our estimates and assumptions on our own historical data and other assumptions that we believe are reasonable after taking account of our circumstances and expectations for the future based on available information. We evaluate these estimates and assumptions on an ongoing basis.

 

Our expectations regarding the future are based on available information and assumptions that we believe to be reasonable and accurate, which together form our basis for making judgments about matters that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial reporting process, our actual results could differ from those estimates. Some of our accounting policies require a higher degree of judgment than others in their application.

 

The critical accounting policies, judgments and estimates that we believe to have the most significant impact on our consolidated financial statements are described below, which should be read in conjunction with our consolidated financial statements and accompanying notes and other disclosures included in this annual report. When reviewing our financial statements, you should consider.

 

●

our selection of critical accounting policies;

 

●

the judgments and other uncertainties affecting the application of such policies;

 

●

the sensitivity of reported results to changes in conditions and assumptions;

 

8

 

 

Our critical accounting policies and practices include the following: (i) revenue recognition; (ii) accounts receivable, net; and (iii) income taxes. See Note 2—Summary of Significant Accounting Policies to our consolidated financial statements for the disclosure of these accounting policies. We believe the following accounting estimates involve the most significant judgments used in the preparation of our financial statements.

 

We consider an accounting estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations. We consider our critical accounting estimates include (i) allowance for doubtful accounts for accounts receivable, (ii) allowance for prepayments and other assets, (iii) discount rate used in operating lease right-of-use assets, and (iv) valuation allowance of deferred tax assets.

 

Allowance for doubtful accounts for accounts receivable

 

Accounts receivables are recorded net of an allowance for credit losses. The Company estimates the allowance for credit losses based on an analysis of the aging of accounts receivable, assessment of collectability, including any known or anticipated economic conditions, customer-specific circumstances, recent payment history and other relevant factors. The allowance for doubtful accounts was approximately $2.8 million and $3.1 million as of June 30, 2023 and December 31, 2022, respectively.

 

The allowance is based on our management’s best estimates of specific losses on individual exposures and a provision on historical trends of collections. The allowance rate will fluctuate based upon the changes of the historical allowance rate and our management’s estimate. If actual conditions are less favorable than those projected by the management, additional doubtful accounts may be required, which could negatively impact our operating results. If actual conditions are more favorable than those projected by the management, we may have a higher profit margin when account receivable balances that have been previously reserved are eventually collected. A 1% increase or decrease of allowance rate for each aged account receivable balances would result in a decrease or increase of approximately $0.12 million and $0.11 million in profit before tax for the six months ended June 30, 2023 and 2022, respectively.

 

Allowance for prepayments and other assets

 

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 allowance for prepayments and other assets were approximately $0.4 million and $0.5 million as of June 30, 2023 and December 31, 2022, respectively.

 

Discount rate used in operating lease right-of-use asset

 

Right-of-use asset (“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.

 

As most of our leases do not provide an implicit rate, we use the incremental borrowing rate based on the information available at lease commencement date to determine the present value of lease payments. Determining the incremental borrowing rate applied in calculating lease liabilities requires the use of certain methodologies and assumptions. When determining the rate, management assesses various factors including the lease term, nature of the asset and the level of security for the right-of-use asset. For the six months ended June 30, 2023 and 2022, the estimated weighted average discount rates used in determining the present value of lease payments was approximately 5.82% and 5.79%, respectively.

 

9

 

 

Valuation of deferred tax assets

 

Deferred income taxes are provided using assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such a determination, the management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. Deferred tax assets are then reduced by a valuation allowance through a charge to income tax expense when, in the opinion of management, it is more likely than not that a portion of or all of the deferred tax assets will not be realized.

 

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 were provided for the Company’s certain subsidiaries with continuous losses as of June 30, 2023 and December 31, 2022. As of June 30, 2023 and December 31, 2022, there were approximately $6.6 million and $9.5 million net operating losses carryforwards in certain subsidiaries, respectively. The net operating tax loss carryforwards will expire from 2024 to 2028.

 

 

10

 

Exhibit 99.3

 

Shengfeng Development Limited Announces First Half of Fiscal Year 2023 Unaudited Financial Results

 

Revenue up 11.1% Year Over Year

 

Net Income up 163.3% Year Over Year

 

Fuzhou, China, October 11 2023 /PRNewswire/-- Shengfeng Development Limited (the “Company” or “Shengfeng”), a contract logistics company in China providing customers with integrated logistics solution services, announced today its unaudited interim financial results for the six months ended June 30, 2023.

 

Financial highlights for the First Half of 2023

 

●	Total revenue increased by approximately 11.1% to approximately $185.0 million for the six months ended June 30, 2023 from approximately $166.5 million for the six months ended June 30, 2022.

 

●	Gross profit increased by approximately 24.9% to approximately $22.8 million for the six months ended June 30, 2023 from approximately $18.2 million for the six months ended June 30, 2022.

 

●	Net income increased by approximately 163.3% to approximately $6.5 million for the six months ended June 30, 2023 from approximately $2.5 million for the six months ended June 30, 2022.

 

Mr. Yongxu Liu, Chairman and Chief Executive Officer of Shengfeng, commented, “I am pleased to share the progress we have made in the first half of 2023. Shengfeng Development Limited, as one of the leading contract logistics service providers in China, has been dedicated to providing exceptional logistics solutions to companies in need of storage and delivery assistance. We are pleased to report that our efforts have yielded positive results, reflected in our financial performance. Our total revenue increased by 11.1% YoY (year-over-year), while our gross profit increased by 24.9% YoY. Particularly noteworthy is the growth of our net income, which experienced an increase of 163.3% YoY. We believe that these achievements demonstrate the effectiveness of our experienced management team and our established management system and operation procedures. We are proud to have played a role in improving the transportation, warehousing, and time management efficiency of companies across China. Moving forward, we remain committed to our mission. We will continue to enhance our services and leverage our expertise to provide superior and customized solutions to our clients. By doing so, we aim to solidify our position as a trusted partner in the logistics industry and achieve sustained excellence. We would like to express our deep appreciation to our valued clients and partners for their trust and support. Your confidence in us has been instrumental in our success, and we do not take it for granted. Rest assured, we are fully dedicated to the pursuit of our mission, and our solid financial performance is evidence of our unwavering commitment. With your continued support, I am confident that Shengfeng Development Limited will continue to prosper and deliver outstanding results in the future.”

 

Key Items of Financial Results the First Half of 2023

 

Revenue

 

Transportation services

 

Net revenues generated from our transportation services increased by approximately 12.5% from approximately $154.6 million for the six months ended June 30, 2022 to approximately $174.0 million for the six months ended June 30, 2023. The increase was mainly driven by increasing orders from a new client in the medical industry, as well as the growth of other existing clients’ businesses.

 

Warehouse storage management services

 

Net revenue generated from our warehouse storage management services decreased by approximately 12.0% from approximately $10.6 million for the six months ended June 30, 2022 to approximately $9.3 million for the six months ended June 30, 2023, primarily due to shutting down redundant warehouses and focusing on transportation services for the six months ended June 30, 2023.

 

 

 

 

Cost of revenues

 

Our cost of revenues was approximately $162.2 million for the six months ended June 30, 2023, increased by approximately 9.4%, from approximately $148.3 million for the six months ended June 30, 2022. Our cost of revenue did not increase proportionately with revenue since we successfully optimized cost structure by outsourcing transport services, reducing redundant departments, and incorporating workforce optimization practices for the six months ended June 30, 2023.

 

Gross profit

 

Our overall gross profit increased by approximately 24.9% from approximately $18.2 million for the six months ended June 30, 2022 to approximately $22.8 million for the six months ended June 30, 2023. For the six months ended June 30, 2023 and 2022, our overall gross margin was approximately 12.3% and 11.0%, respectively. The gross margin increased mainly due to our cost structure optimization accomplished by outsourcing transport service, reducing redundant departments, and incorporating workforce optimization practices for the six months ended June 30, 2023.

 

Operating expenses

 

Our operating expenses decreased by approximately 0.8% from approximately $14.4 million for the six months ended June 30, 2022 to approximately $14.3 million for the six months ended June 30, 2023 for the following reasons:

 

Selling and marketing expenses

 

Our sales and marketing expenses consist primarily of employee wages, rental expenses and benefits for sales and marketing staff, rental expenses, depreciation expenses and other daily expenses which are related to the sales and marketing functions. Selling and marketing expenses decreased by approximately $0.3 million from approximately $3.7 million for the six months ended June 30, 2022, to approximately $3.3 million for the six months ended June 30, 2023, which was attributable to decreased employee wages and benefits, due to workforce optimization practices. 

 

General and administrative expenses

 

Our general and administrative expenses consist primarily of employee wages and benefits for corporate employees, rental expenses, depreciation and amortization expense and other expenses which are related to the general corporate functions.

 

Our general and administrative expenses increased by approximately 2.1% from approximately $10.8 million for the six months ended June 30, 2022, to approximately $11.0 million for the six months ended June 30, 2023, which was attributable to the increase in employee salary and benefits due to increased headcount of the G&A department.

 

Income before income taxes

 

As a result of the foregoing, our income before income taxes increased by approximately $5.0 million, or approximately 178.6%, to approximately $7.9 million for the six months ended June 30, 2023 from approximately $2.8 million for the six months ended June 30, 2022.

 

Provision for income taxes

 

The effective income tax rate increased from approximately 13.1% for the six months ended June 30, 2022 to approximately 17.9% for the six months ended June 30, 2023. The increase in the effective tax rate is mainly due to increased profit made in subsidiaries that don’t have preferential tax treatment for the six months ended June 30, 2023.

 

2

 

 

Net income

 

As a result of the foregoing, our net income increased by approximately $4.0 million, or 163.3%, to approximately $6.5 million for the six months ended June 30, 2023 from approximately $2.5 million for the six months ended June 30, 2022.

 

About Shengfeng Development Limited

 

Shengfeng Development Limited is a contract logistics company in China providing customers with integrated logistics solution services. Established in 2001, the Company has developed extensive and reliable transportation networks in China, covering 341 cities across 31 provinces, as of June 30, 2023. The Company provides integrated logistics solutions comprised of B2B freight transportation services, cloud storage services, and value-added services. The Company applies well-established management system and operation procedures to assist companies in China to increase efficiency and improve their own management systems with respect to transportation, warehousing and time management. For more information, please visit the Company’s website: http://ir.sfwl.com.cn/.

 

Forward-Looking Statements

 

Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company’s proposed Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions in this report. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

 

For more information, please contact:

 

Shengfeng Development Limited

 

Investor Relations Department

 

Email: [e-mail]

 

Shengfeng Development Limited

 

Samuel Xian

 

Phone: [phone]

 

Email: [e-mail]

 

3

 

 

SHENGFENG DEVELOPMENT LIMITED

 

 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

 (All amounts in thousands of USD, except for share and per share data, unless otherwise noted)

 

		June 30,				December 31,
		2023				2022
Assets
Current Assets:
Cash		$	29,082			$	21,285
Restricted cash			2,593				2,083
Notes receivable			4,505				4,885
Accounts receivable, net			75,774				89,110
Prepayments and other current assets, net			18,725				18,292
Due from related parties			41				42
Total Current Assets			130,720				135,697
Property and equipment, net			38,702				40,265
Intangible assets, net			12,237				6,711
Operating lease right-of-use assets, net			21,130				27,880
Long-term investments			1,888				2,040
Deposit for investment			13,839				14,358
Deferred tax assets			2,769				3,587
Deferred issuance costs			76				81
Other non-current assets			8,441				14,640
Total Assets		$	229,802			$	245,259
Liabilities and Shareholders’ Equity
Current Liabilities
Notes payable		$	9,411			$	2,046
Accounts payable			42,191				57,048
Short-term bank loans			34,861				47,655
Due to related parties			1,573				2,414
Salary and welfare payables			2,303				3,241
Accrued expenses and other current liabilities			7,592				6,551
Operating lease liabilities, current			7,382				9,634
Tax payables			3,202				2,207
Total Current Liabilities			108,515				130,796
Operating lease liabilities, non-current			13,401				17,507
Other non-current liabilities			1,775				1,870
Total Liabilities			123,691				150,173
Commitments and Contingencies
Shareholders’ Equity
Class A Ordinary share, $0.0001 par value, 400,000,000 shares authorized; 40,520,000 and 38,120,000 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively*			4				4
Class B Ordinary share, $0.0001 par value, 100,000,000 shares authorized; 41,880,000 shares issued and outstanding as of June 30, 2023 and December 31, 2022*			4				4
Additional paid-in capital			83,762				75,575
Statutory reserves			3,974				3,974
Retained earnings			23,719				17,275
Accumulated other comprehensive loss			(9,500	)			(5,609	)
Total Shengfeng Development Limited’s Shareholders’ Equity			101,963				91,223
Non-controlling Interests			4,148				3,863
Total Shareholders’ Equity			106,111				95,086
Total Liabilities and Shareholders’ Equity		$	229,802			$	245,259

 

*	Shares and per share data are presented on a retroactive basis to reflect the reorganization.

 

4

 

 

SHENGFENG DEVELOPMENT LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) 

 

(All amounts in thousands of USD, except for share and per share data, unless otherwise noted)

 

		Six Months Ended June 30,
		2023				2022
Revenues
Transportation		$	173,989			$	154,614
Warehouse storage management service			9,315				10,591
Others			1,667				1,333
Total revenues			184,971				166,538
Cost of revenues			(162,195	)			(148,296	)
Gross profit			22,776				18,242
Operating expenses
Selling and marketing			(3,336	)			(3,672	)
General and administrative			(10,976	)			(10,755	)
Total operating expenses			(14,312	)			(14,427	)
Income from operations			8,464				3,815
Other income (expense)
Interest income			61				40
Interest expense			(982	)			(1,151	)
Other income, net			329				122
Income before income taxes			7,872				2,826
Provision for income taxes			(1,409	)			(371	)
Net income			6,463				2,455
Less: Income (loss) attributable to non-controlling interests			19				(1	)
Net income attributable to Shengfeng Development Limited’s shareholders		$	6,444			$	2,456
Comprehensive income (loss)
Net income			6,463				2,455
Foreign currency translation adjustment			(4,049	)			(4,880	)
Total comprehensive income (loss)			2,414				(2,425	)
Less: total comprehensive income (loss) attributable to non-controlling interests			(139	)			1
Total comprehensive income (loss) attributable to Shengfeng Development Limited		$	2,553			$	(2,426	)
Weighted average shares outstanding used in calculating basic and diluted loss per share:
Class A and Class B Ordinary Shares - Basic and diluted*			81,166,851				80,000,000
Earnings per share
Class A and Class B Ordinary Shares - Basic and diluted*		$	0.08			$	0.03

 

*	Shares and per share data are presented on a retroactive basis to reflect the reorganization.

 

 

5

 

Document And Entity Information	6 Months Ended
	Jun. 30, 2023
Document Information Line Items
Entity Registrant Name	Shengfeng Development Limited
Document Type	6-K
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	0001863218
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity File Number	001-41674

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands		Jun. 30, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents		$ 29,082	$ 21,285
Restricted cash		2,593	2,083
Notes receivable		4,505	4,885
Accounts receivable, net		75,774	89,110
Prepayments and other current assets, net		18,725	18,292
Total Current Assets		130,720	135,697
Property and equipment, net		38,702	40,265
Intangible assets, net		12,237	6,711
Operating lease right-of-use assets, net		21,130	27,880
Long-term investments		1,888	2,040
Deposit for investment		13,839	14,358
Deferred tax assets		2,769	3,587
Deferred issuance costs		76	81
Other non-current assets		8,441	14,640
Total Assets		229,802	245,259
Current Liabilities
Notes payable		9,411	2,046
Accounts payable		42,191	57,048
Short-term bank loans		34,861	47,655
Salary and welfare payables		2,303	3,241
Accrued expenses and other current liabilities		7,592	6,551
Operating lease liabilities, current		7,382	9,634
Tax payables		3,202	2,207
Total Current Liabilities		108,515	130,796
Operating lease liabilities, non-current		13,401	17,507
Other non-current liabilities		1,775	1,870
Total Liabilities		123,691	150,173
Commitments and Contingencies
Shareholders’ Equity
Additional paid-in capital		83,762	75,575
Statutory reserves		3,974	3,974
Retained earnings		23,719	17,275
Accumulated other comprehensive loss		(9,500)	(5,609)
Total Shengfeng Development Limited’s Shareholders’ Equity		101,963	91,223
Non-controlling Interests		4,148	3,863
Total Shareholders’ Equity		106,111	95,086
Total Liabilities and Shareholders’ Equity		229,802	245,259
Class A Ordinary Share
Shareholders’ Equity
Ordinary share value	[1]	4	4
Class B Ordinary Share
Shareholders’ Equity
Ordinary share value	[1]	4	4
Related Party
Current Assets:
Due from related parties		41	42
Current Liabilities
Due to related parties		$ 1,573	$ 2,414
[1] Shares and per share data are presented on a retroactive basis to reflect the reorganization described herein.

Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares		Jun. 30, 2023	Dec. 31, 2022
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]	40,520,000	38,120,000
Ordinary share, shares outstanding	[1]	40,520,000	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 described herein.

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income (Loss) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022
Revenues
Total revenues		$ 184,971	$ 166,538
Cost of revenues		(162,195)	(148,296)
Gross profit		22,776	18,242
Operating expenses
Selling and marketing		(3,336)	(3,672)
General and administrative		(10,976)	(10,755)
Total operating expenses		(14,312)	(14,427)
Income from operations		8,464	3,815
Other income (expense)
Interest income		61	40
Interest expense		(982)	(1,151)
Other income, net		329	122
Income before income taxes		7,872	2,826
Provision for income taxes		(1,409)	(371)
Net income		6,463	2,455
Less: Income (loss) attributable to non-controlling interests		19	(1)
Net income attributable to Shengfeng Development Limited’s shareholders		6,444	2,456
Comprehensive income (loss)
Net income		6,463	2,455
Foreign currency translation adjustment		(4,049)	(4,880)
Total comprehensive income (loss)		2,414	(2,425)
Less: total comprehensive income (loss) attributable to non-controlling interests		(139)	1
Total comprehensive income (loss) attributable to Shengfeng Development Limited		$ 2,553	$ (2,426)
Class A and Class B Ordinary Shares - Basic (in Shares)	[1]	81,166,851	80,000,000
Class A and Class B ordinary shares - Basic (in Dollars per share)	[1]	$ 0.08	$ 0.03
Transportation
Revenues
Total revenues		$ 173,989	$ 154,614
Warehouse storage and storage management service
Revenues
Total revenues		9,315	10,591
Others
Revenues
Total revenues		$ 1,667	$ 1,333
[1] Shares and per share data are presented on a retroactive basis to reflect the reorganization described herein.

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Parentheticals) - $ / shares		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Class A and Class B ordinary shares - Diluted	[1]	81,166,851	80,000,000
Class A and Class B ordinary shares - Diluted	[1]	$ 0.08	$ 0.03
[1] Shares and per share data are presented on a retroactive basis to reflect the reorganization described herein.

Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands		Class A Ordinary Shares	Class B Ordinary Shares	Additional paid-in capital	Statutory reserves	Retained earnings	Accumulated other comprehensive income (loss)	Non- controlling interests	Total
Balance at Dec. 31, 2021		$ 4	$ 4	$ 75,575	$ 3,430	$ 10,032	$ 2,548	$ 4,305	$ 95,898
Balance (in Shares) at Dec. 31, 2021	[1]	38,120,000	41,880,000
Net income						2,456		(1)	2,455
Foreign currency translation							(4,882)	2	(4,880)
Balance at Jun. 30, 2022		$ 4	$ 4	75,575	3,430	12,488	(2,334)	4,306	93,473
Balance (in Shares) at Jun. 30, 2022	[1]	38,120,000	41,880,000
Balance at Dec. 31, 2022		$ 4	$ 4	75,575	3,974	17,275	(5,609)	3,863	95,086
Balance (in Shares) at Dec. 31, 2022	[1]	38,120,000	41,880,000
Net proceeds from initial public offering				8,187					8,187
Net proceeds from initial public offering (in Shares)	[1]	2,400,000
Net income						6,444		19	6,463
Capital contribution from non-controlling shareholders								424	424
Foreign currency translation							(3,891)	(158)	(4,049)
Balance at Jun. 30, 2023		$ 4	$ 4	$ 83,762	$ 3,974	$ 23,719	$ (9,500)	$ 4,148	$ 106,111
Balance (in Shares) at Jun. 30, 2023	[1]	40,520,000	41,880,000
[1] Shares and per share data are presented on a retroactive basis to reflect the reorganization described herein.

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 6,463	$ 2,455
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization of property and equipment	3,265	3,643
Amortization of right-of-use assets and interest of lease liabilities	5,209	5,240
Amortization of intangible assets	269	279
Provision for (recovery of) doubtful accounts	(29)	404
Share of income in equity method investee	(33)	(51)
Gain on disposal of property and equipment	(184)
Loss from disposal of subsidiaries	92
Deferred income taxes expenses	700	270
Changes in operating assets and liabilities:
Notes receivable	212	1,466
Accounts receivable	10,564	(1,152)
Prepayments and other current assets	(1,189)	(2,538)
Other non-current assets	(12)
Notes payable	(902)	2,499
Accounts payable	(13,343)	(9,565)
Due to related parties	(183)	(3)
Salary and welfare payable	(856)	(583)
Accrued expenses and other current liabilities	2,573	220
Operating lease liabilities	(4,829)	(5,242)
Tax payables	1,118	60
Other non-current liabilities	(29)	(12)
Net cash provided by (used in) operating activities	8,876	(2,610)
Cash flows from investing activities:
Purchase of intangible assets	(185)	(14)
Purchase of property and equipment	(5,232)	(5,535)
Proceed from disposal of property and equipment	786	280
Proceed from disposal of subsidiary	52
Dividend received from investment	115
Net cash used in investing activities	(4,464)	(5,269)
Cash flows from financing activities:
Proceeds from initial public offering	8,547
Proceeds from short-term bank loans	36,368	29,644
Repayments of short-term bank loans	(39,255)	(25,943)
Due to related parties	(600)
Capital contribution from non-controlling shareholders	424
Deferred issuance costs	(357)
Net cash provided by financing activities	5,127	3,701
Effects of exchange rate changes on cash, cash equivalents and restricted cash	(1,232)	(805)
Net increase (decrease) in cash, cash equivalents and restricted cash	8,307	(4,983)
Cash, cash equivalents and restricted cash, beginning of period	23,368	18,918
Cash, cash equivalents and restricted cash, end of period	31,675	13,935
Supplemental cash flow information:
Cash paid for income tax	303	29
Cash paid for interest	982	1,079
Non-cash Transaction in Investing and Financing Activities
Liabilities settled for purchase of property and equipment	(1,241)	(7,398)
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	1,725	3,396
Reclassification of deferred issuance costs	81
Reconciliation to amount on consolidated balance sheets:
Cash and cash equivalents	29,082	12,583
Restricted cash	2,593	1,352
Total cash, cash equivalents and restricted cash	$ 31,675	$ 13,935

Organization and Nature of Operations	6 Months Ended
	Jun. 30, 2023
Organization and Nature of Operations [Abstract]
ORGANIZATION AND NATURE OF OPERATIONS	1. ORGANIZATION AND NATURE OF OPERATIONS   Shengfeng Development Limited (“Shengfeng” or the “Company”), is a holding company incorporated under the laws of the Cayman Islands on July 16, 2020, as an exempted company with limited liability. The Company has no substantive operations other than holding all of the outstanding share capital of Shengfeng Holding Limited (“Shengfeng HK”) established under the laws of Hong Kong on August 18, 2020.   Shengfeng HK is also a holding company holding all of the outstanding equity of Fujian Tianyu Shengfeng Logistics Co., Ltd. (“Tianyu” or “Shengfeng WFOE” or “WFOE”), which was established on December 16, 2020 under the laws of the People’s Republic of China (“PRC” or “China”).   The Company, through its variable interest entity (“VIE”), Shengfeng Logistics Group Co., Ltd. (“Shengfeng VIE” or “VIE”), and its subsidiaries, operates as a transportation and warehouse storage management services provider in the PRC. Shengfeng VIE was incorporated on December 7, 2001 under the laws of the PRC. Paid-in capital of Shengfeng VIE was approximately $27.17 million (approximately RMB189.6 million) as of June 30, 2023.   On December 18, 2020, the Company completed a reorganization of entities under common control of its then existing shareholders, who collectively owned all of the equity interests of the Company prior to the reorganization. The Company, and Shengfeng HK were established as the holding companies of Shengfeng WFOE. Shengfeng WFOE is the primary beneficiary of Shengfeng VIE and its subsidiaries, and all of these entities included in the Company are under common control, which results in the consolidation of Shengfeng VIE and its subsidiaries which have been accounted for as a reorganization of entities under common control at carrying value. The consolidated financial statements are prepared on the basis as if the reorganization became effective as of the beginning of the first period presented in the accompanying consolidated financial statements of the Company.   The accompanying consolidated financial statements reflect the activities of the Company and each of the following entities, including its WFOE and VIE:   Name of subsidiaries   Place of incorporation   Date of incorporation or acquisition   Percentage of direct or indirect     Principal activities                     Shengfeng Holding Limited (“Shengfeng HK”)   Hong Kong   August 18, 2020   100 %   Investment holding of Tianyu Tianyu Shengfeng Logistics Group Co., Ltd. (“Tianyu”, formerly known as “Fujian Tianyu Shengfeng Logistics Co., Ltd “)   Fujian, the PRC   December 16, 2020   100 %   Investment holding of Shengfeng VIE                     VIE and VIE’s subsidiaries:                   Shengfeng Logistics Group Co., Ltd. (“Shengfeng VIE” or “Shengfeng Logistics”)   Fujian, the PRC   December 7, 2001   100 %   Transportation and warehouse storage management service Fuqing Shengfeng Logistics Co., Ltd.   Fujian, the PRC   April 15, 2011   100 %   Transportation and warehouse storage management service Xiamen Shengfeng Logistics Co., Ltd.   Fujian, the PRC   December 22, 2011   100 %   Transportation and warehouse storage management service Guangdong Shengfeng Logistics Co., Ltd.   Guangdong, the PRC   December 30, 2011   100 %   Transportation and warehouse storage management service Hainan Shengfeng Supply Chain Management Co., Ltd.   Hainan, the PRC   August 18, 2020   100 %   Transportation and warehouse storage management service Beijing Tianyushengfeng E-commerce Technology Co., Ltd.   Beijing, the PRC   January 9, 2004   100 %   Transportation and warehouse storage management service Beijing Shengfeng Supply Chain Management Co., Ltd.   Beijing, the PRC   April 13, 2016   100 %   Transportation and warehouse storage management service Shengfeng Logistics (Guizhou) Co., Ltd.   Guizhou, the PRC   August 15, 2017   100 %   Transportation and warehouse storage management service Shengfeng Logistics (Tianjin) Co., Ltd.   Tianjin, the PRC   March 8, 2016   100 %   Transportation and warehouse storage management service Shengfeng Logistics (Shandong) Co., Ltd.   Shandong, the PRC   March 15, 2016   100 %   Transportation and warehouse storage management service Shengfeng Logistics Hebei Co., Ltd.   Hebei, the PRC   February 17, 2016   100 %   Transportation and warehouse storage management service Shengfeng Logistics (Henan) Co., Ltd.   Henan, the PRC   March 28, 2016   100 %   Transportation and warehouse storage management service Shengfeng Logistics (Liaoning) Co., Ltd.   Liaoning, the PRC   March 2, 2016   100 %   Transportation and warehouse storage management service   Name of subsidiaries   Place of incorporation   Date of incorporation or acquisition   Percentage of direct or indirect     Principal activities                     Shengfeng Logistics (Yunnan) Co., Ltd.   Yunnan, the PRC   January 25, 2016   100 %   Transportation and warehouse storage management service Shengfeng Logistics (Guangxi) Co., Ltd.   Guangxi, the PRC   February 1, 2016   100 %   Transportation and warehouse storage management service Hubei Shengfeng Logistics Co., Ltd.   Hubei, the PRC   December 15, 2010   100 %   Transportation and warehouse storage management service Shengfeng Logistics Group (Shanghai) Supply Chain Management Co., Ltd.   Shanghai, the PRC   August 26, 2015   100 %   Transportation and warehouse storage management service Shanghai Shengxu Logistics Co., Ltd.   Shanghai, the PRC   June 4, 2003   100 %   Transportation and warehouse storage management service Hangzhou Shengfeng Logistics Co., Ltd.   Zhejiang, the PRC   June 10, 2010   100 %   Transportation and warehouse storage management service Nanjing Shengfeng Logistics Co., Ltd.   Jiangsu, the PRC   August 30, 2011   100 %   Transportation and warehouse storage management service Suzhou Shengfeng Logistics Co., Ltd.   Jiangsu, the PRC   January 14, 2005   90 %   Transportation and warehouse storage management service Suzhou Shengfeng Supply Chain Management Co., Ltd. (a)   Jiangsu, the PRC   August 9, 2019   100 %   Transportation and warehouse storage management service Shengfeng Supply Chain Management Co., Ltd.   Fujian, the PRC   June 19, 2014   100 %   Transportation and warehouse storage management service Fuzhou Shengfeng Transportation Co., Ltd.   Fujian, the PRC   April 18, 2019   100 %   Transportation and warehouse storage management service Sichuan Shengfeng Logistics Co., Ltd.   Sichuan, the PRC   June 27, 2019   100 %   Transportation and warehouse storage management service Fujian Shengfeng Logistics Co., Ltd.   Fujian, the PRC   April 2, 2020   100 %   Transportation and warehouse storage management service Fujian Dafengche Information Technology Co. Ltd.   Fujian, the PRC   August 26, 2020   100 %   Software engineering Ningde Shengfeng Logistics Co. Ltd.(b)   Fujian, the PRC   November 12, 2018   51 %   Transportation and warehouse storage management service Fujian Fengche Logistics Co., Ltd. (c)   Fujian, the PRC   October 28, 2020   0 %   Transportation service Shengfeng Logistics (Zhejiang) Co., Ltd.   Zhejiang, the PRC   February 1, 2021   100 %   Transportation and warehouse storage management service Chengdu Shengfeng Supply Chain Management Co., Ltd.   Chengdu, the PRC   October 12, 2021   100 %   Supply chain management service Shengfeng Logistics Group (Ningde) Supply Chain Management Co., Ltd. (d)   Fujian, the PRC     September 23, 2022   100 %   Supply chain management service                     Significant subsidiaries of Tianyu:           Yichun Shengfeng Logistics Co., Ltd. (e)   Jiangxi, the PRC   December 1, 2022   100 %   Transportation and warehouse storage management service Fujian Shengfeng Smart Technology Co., Ltd. (f)   Fujian, the PRC   April 20, 2023   100 %   Property management service Shenzhen Tianyu Shengfeng Supply Chain Management Co., Ltd. (g)   Shenzhen, the PRC   May 19, 2023   100 %   Supply chain management service Fujian Pingtan Tianyu Shengfeng Technology Co., Ltd(h)   Fujian, the PRC   September 27, 2023   100 %   Supply chain management service     (a) On July 8, 2021, Suzhou Shengfeng Supply Chain Management Co, Ltd. became a wholly owned subsidiary of Shengfeng Logistics.   (b) On January 5, 2022, Shengfeng Logistics entered into a share transfer agreement with Fuzhou Puhui Technology Co., Ltd. (“Fuzhou Puhui”), an unrelated third party, to transfer its 49% equity interest in Ningde Shengfeng Logistics Co., Ltd. (“Ningde Shengfeng”) to Fuzhou Puhui. After the transaction, the Company owned a 51% equity interest in Ningde Shengfeng.   (c) On June 5, 2023, 100% equity interest in Fujian Fengche Logistics Co., Ltd. was transferred to third parties.   (d) On September 23, 2022, Shengfeng Logistics Group (Ningde) Supply Chain Management Co., Ltd. was set up in Fujian, China. This entity is fully owned by Shengfeng Logistics Group Co., Ltd. and will provide supply chain management service in the future.   (e) On May 29, 2023, Yichun Shengfeng Logistics Co., Ltd. became a wholly owned subsidiary of Tianyu.   (f) On April 20, 2023, Fujian Shengfeng Smart Technology Co., Ltd. was set up in Fujian, China. This entity is fully owned by Tianyu and will provide property management service in the future.   (g) On May 19, 2023, Shenzhen Tianyu Shengfeng Supply Chain Management Co., Ltd. was set up in Shenzhen, China. This entity is fully owned by Tianyu and will provide supply chain management service in the future.     (h) On September 27, 2023, Fujian Pingtan Tianyu Shengfeng Technology Co., Ltd was set up in Fujian, China. 51% of the equity interest is owned by Tianyu, and 49% of the equity interest is owned by Shengfeng Supply Chain Management Co., Ltd. This entity will provide supply chain management service in the future.

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   Basis of presentation   The accompanying unaudited condensed 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 U.S. Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.   In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2023 and 2022 are not necessarily indicative of the results that may be expected for the full year. The information included in this interim report should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto included in Shengfeng’s annual financial statements for the fiscal year ended December 31, 2022 filed with the SEC on May 1, 2023.   Principles of Consolidation   The unaudited condensed consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE and the 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, the VIE and the 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, the VIE and the 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, allowance 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.   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 loss amounted to $9,500 and $5,609 as of June 30, 2023 and December 31, 2022, respectively. The balance sheet amounts, with the exception of shareholders’ equity, at June 30, 2023 and December 31, 2022 were translated at RMB7.2258 and RMB6.9646, respectively. The shareholders’ equity accounts were stated at their historical rates. The average translation rates applied to the statement of income accounts for the six months ended June 30, 2023 and 2022 were RMB6.9291 and RMB6.4835 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 and cash equivalents   Cash and cash equivalents represent 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 mainland of China. Cash balances in bank accounts in mainland China are insured by the People’s Bank of China Financial Stability Department (“FSD”) while there is a RMB 500,000 deposit insurance limit for a legal entity’s aggregated balance at each bank. As of June 30, 2023 and December 31, 2022, the Company has approximately $29.1 million and $21.3 million, respectively, of cash in banks, most held in the banks located in the mainland of China. Most of cash balances as of June 30, 2023 and December 31, 2022 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 balances in designated bank accounts as security for payment processing and lawsuits. 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 their fair value as of June 30, 2023 and December 31, 2022 as the interest rates applied reflect the current market yield for comparable financial instruments.   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 will update it if necessary. The allowance for doubtful accounts was approximately $2.8 million and $3.1 million as of June 30, 2023 and December 31, 2022, respectively.   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 six months ended June 30, 2023 and 2022.   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 fees, consulting fees related to the registration preparation, SEC filings 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 unaudited condensed consolidated financial statements for the six months ended June 30, 2023 and 2022 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 management services. No practical expedients were used when adoption of ASC 606 occurred. 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’ orders. 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 management services   The Company derives revenue from the warehouse storage management services provided to third-party companies, including handling services, security and other services. The promised services in each warehouse 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 customers with warehouse storage management services during the service period. Service fees 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 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. U.S. GAAP requires us to evaluate, using a control model, whether the Company itself promises to provide services to the customers (as a principal) or it will 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 its 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 June 30, 2023 and December 31, 2022.   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 $0.9 million and $0.8 million for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023 and December 31, 2022, contract liabilities amounted to approximately $1.2 million and $1.1 million, respectively.   Disaggregated information of revenues by services:       Six Months Ended June 30,       2023     2022                 Revenues:             Transportation   $ 173,989     $ 154,614   Warehouse storage management service     9,315       10,591   Others     1,667       1,333   Total revenues   $ 184,971       166,538     As of June 30, 2023 and December 31, 2022, the Company had outstanding contracts for providing transportation and warehouse management services amounting to approximately $1.2 million and $1.0 million, all of which is expected to be completed within 12 months from June 30, 2023 and December 31, 2022, 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:       Six Months Ended June 30,       2023     2022                 Fujian   $ 115,246     $ 95,174   Beijing     14,189       15,701   Sichuan     9,986       7,683   Zhejiang     7,646       8,011   Shandong     7,410       6,295   Others     30,494       33,674   Total   $ 184,971       166,538     Leases   The Company has elected the package of practical expedients permitted which allows the Company not to reassess the following at the 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 contains 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”)   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 the PRC remain subject to examination by the tax authorities for five years from the date of filing.   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 six months ended June 30, 2023 and 2022. All of the tax returns of the Company’s subsidiaries in the PRC remain subject to examination by the tax authorities for five years from the date of filing.   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) 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 U.S. 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   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 six months ended June 30, 2023 and 2022, 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   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 June 30, 2023 and December 31, 2022, approximately $31.7 million and $23.4 million were deposited with financial institutions located in the PRC, respectively, where there is a RMB500,000 deposit insurance limit for a legal entity's aggregated balance at each bank. As a result, the amounts not covered by deposit insurance were $29.1 million and $22.2 million as of June 30, 2023 and December 31, 2022, respectively.   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 3.75% in the six months ended June 30, 2023 from December 31, 2022 to June 30, 2023 and depreciated by 9.24% from December 31, 2021 to December 31, 2022. 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 represented greater than 10% of the total revenue of the Company in any of the periods presented.   For the six months ended June 30, 2023, Fujian Jinwang Yuntong Logistics Technology Co., Ltd. contributed approximately 28.8% of total cost of revenue of the Company. For the six months ended June 30, 2022, Anhui Luge Transportation Co., Ltd. and Fujian Jinwang Yuntong Logistics Technology Co., Ltd contributed approximately 13.9% and 12.8% of total cost of revenue of the Company, respectively.    As of June 30, 2023 and December 31, 2022, no customers accounted more than 10% of the account receivables.   As of June 30, 2023, no supplier contributed more than 10% of total account payable balances. As of December 31, 2022, Fujian Jinwang Yuntong Logistics Technology Co., Ltd., contributed approximately 13.4% of total account payable balances.   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   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   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   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 adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.    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 June 2022, the FASB issued ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The update clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The update also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The update also requires certain additional disclosures for equity securities subject to contractual sale restrictions. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. As an emerging growth company, the standard is effective for the Company for the year ended December 31, 2025. The Company is in the process of evaluating the impact of the new guidance on its 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.

Accounts Receivable, Net	6 Months Ended
	Jun. 30, 2023
Accounts Receivable, Net [Abstract]
Accounts receivable, net	3. Accounts receivable, net   Accounts receivable, net consisted of the following:       As of June 30, 2023     As of December 31, 2022                 Accounts receivable   $ 78,557     $ 92,225   Less: Allowance for doubtful accounts     (2,783 )     (3,115 ) Total   $ 75,774     $ 89,110     Movement of allowance of doubtful accounts       Six Months Ended June 30, 2023     Year Ended December 31, 2022                 Beginning balance   $ 3,115     $ 2,398   (Recovery of) provision for doubtful accounts     (16 )     1,130   Written-off     (213 )     (178 ) Exchange rate effect     (103 )     (235 ) Ending balance   $ 2,783     $ 3,115

Intangible Assets, Net	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets, net	4. 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 June 30, 2023     As of December 31, 2022                 Land use rights (a)   $ 13,806     $ 8,011   Licensed software     1,997       2,133   Subtotal     15,803       10,144   Less: accumulated amortization     (3,566 )     (3,433 ) Intangible assets, net   $ 12,237     $ 6,711     (a) In January 2022, the Company signed an agreement with Ningde City government to purchase a land use right for approximately $5.9 million (RMB 42,690,000) and the prepayment was made to the local government accordingly. The Company obtained certificate of land-use right and the transaction was completed in June 2023. The prepaid balance was transferred from other non-current assets to intangible assets. The term of the land use right is 50 years from 2023 to 2073.   As of June 30, 2023 and December 31, 2022, land use rights with net book value amounted to approximately $2.5 million and $2.6 million, respectively, were pledged for obtaining various of loans (See Note 7 Short-term bank loans).   Amortization expenses for the six months ended June 30, 2023 and 2022, amounted to approximately $0.3 million and $0.3 million, respectively.   The future amortization for the intangible assets is expected to be as follows:     Twelve months ending June 30,   Estimated amortization expense           2023   $ 637   2024     531   2025     424   2026     403   2027     358   Thereafter     9,884   Total   $ 12,237

Related Party Transactions	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Related party transactions	5. Related party transactions   The table below sets forth the major related parties and their relationships with the Company as of June 30, 2023 and December 31, 2022, and for the six months ended June 30, 2023 and 2022   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 Yongteng Liu   CEO’s brother   i) Significant transactions with related parties were as follows:       Six Months Ended June 30,       2023     2022                 Transportation services to Fujian Bafang   $      -     $ 18   Total   $ -       18         Six Months Ended June 30,       2023     2022                 Transportation services from Fujian Bafang   $ 472     $ 431   Lease services from Fuzhou Tianyu   $ 109     $ 152     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 7).   iii) Significant balances with related parties were as follows:        As of June 30, 2023     As of December 31, 2022                 Due from related parties             Fuzhou Tianyu   $ 41     $ 42   Total   $ 41     $ 42         As of June 30, 2023     As of December 31, 2022                 Due to related parties             Fujian Bafang (a)   $ 1,416     $ 1,694   Fuzhou Tianyu     123       84   Fuzhou Tianyu Management     34       36   Yongteng Liu     -       600   Total   $ 1,573     $ 2,414     (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.

Notes Payables	6 Months Ended
	Jun. 30, 2023
Notes Payables [Abstract]
Notes payables	6. Notes payables       As of June 30, 2023     As of December 31, 2022                 Bank acceptance notes payable issued by Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch (a)   $ 1,107     $ 2,046   Commercial acceptance notes payable guaranteed by China Minsheng Bank Fuzhou Branch (b)     8,304       -   Total   $ 9,411     $ 2,046     (a) On March 20, 2023, Shanghai Pudong Development Bank Co., Ltd. issued bank acceptance notes payable of approximately $1.1 million (RMB8.0 million) to the Company with due date on September 30, 2023. The Company was required to maintain restricted cash deposits of approximately $0.3 million (RMB2.4 million) in such bank, in order to ensure future credit availability. These notes were fully paid upon maturity and the restricted deposit was also released upon the note repayments.   (b) In February 2023, the Company issued commercial acceptance notes payable of approximately $8.3 million (RMB60.0 million) and guaranteed by China Minsheng Bank Fuzhou Branch with a due date on February 6, 2024. The commercial acceptance notes were collateralized by the real estate property valued at approximately $8.0 million and the land use rights for the property located at Dapu village, Honglu street, Fuqing City, Fuzhou City, Fujian Province, PRC, valued at approximately $0.9 million, owned by the Company and were further guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and his brother, Yongteng Liu.

Short-Term Bank Loans	6 Months Ended
	Jun. 30, 2023
Short-Term Bank Loans [Abstract]
Short-term bank loans	7. Short-term bank loans   The following table presents short-term bank loans from commercial banks as of June 30, 2023 and December 31, 2022:       As of June 30, 2023     As of December 31, 2022                 China Minsheng Bank Fuzhou Branch   $ -     $ 10,769   Bank of China Fuzhou Jin’an Branch     11,071       11,487   China Merchant Bank Fuzhou Branch     8,996       10,769   Xiamen International Bank Co., Ltd. Fuzhou Branch     6,920       7,179   Haixia Bank of Fujian Fuzhou Jin’an Branch     1,384       1,436   Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch     1,384       1,436   Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch     1,384       1,436   Industrial Bank Fuzhou Huqian Sub Branch     830       861   Industrial Bank Fuzhou Branch     1,370       1,421   China Everbright Bank Co., Ltd Fuzhou Tongpan Branch     830       861   Guangxi Beibu Gulf Bank Nanning Branch     692       -   Total   $ 34,861     $ 47,655     As of June 30, 2023 and December 31, 2022, the total short-term bank borrowings balance of the Company was approximately $34.9 million and $47.7 million, respectively. The short-term bank loans outstanding carried a weighted average interest rate of approximately 4.08% and 4.64% per annum for the six months ended June 30, 2023 and 2022, 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 (RMB37.0 million) and a facility of up to approximately $5.96 million (RMB38.0 million) were made available to the Company, at a fixed interest rate of 4.35% per annum. These short-term loans were collateralized by the real estate property valued at approximately $8.4 million and the land use rights for the property located at Dapu village, Honglu street, Fuqing City, Fuzhou City, Fujian Province, PRC, valued at approximately $1.0 million, owned by the Company and were further guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and his brother, Yongteng Liu.   The $5.8 million (RMB37.0 million) loan matured on September 10, 2022 and the $5.96 million (RMB38.0 million) loan matured on September 22, 2022. The Company made early repayment for the loans of approximately $5.8 million (RMB37.0 million) on July 7, 2022, $2.82 million (RMB18.0 million) on July 14, 2022 and $3.14 million (RMB20.0 million) on July 18, 2022.   After the repayment, the Company obtained additional loans of approximately $5.3 million (RMB37.0 million) on July 7, 2022, $2.6 million (RMB18.0 million) on July 14, 2022 and $2.9 million (RMB20.0 million) on July 18, 2022 at a fixed interest rate of 4% per annum.   The aforementioned loans were repaid on maturity on February 7, February 14 and February 18, 2023. After repayment of the loans of $10.8 million (RMB75 million), the Company obtained the note payable amounted $8.3 million (RMB60.0 million) issued by the same bank on February 17, 2023 and to paid to its suppliers on February 20, 2023. (See Note 6).     Bank of China Fuzhou Jin’an Branch   On June 28, 2021, the Company entered into a short-term loan facility agreement with Bank of China Fuzhou Jin’an Branch pursuant to which a total facility of up to approximately $12.3 million (RMB80.0 million) was made available to the Company at a fixed interest rate of 4.35% per annum. Loans from this facility are collateralized by the real estate property and the land use rights, amounted to approximately $9.8 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 1; and (ii) the financing exposure balance shall be no more than approximately $61.3 million (RMB 400,000,000) or 25% of the annual revenue. If the Company fails to meet either of the financial covenants, the total loan facility available will be reduced to approximately $7.7 million (RMB50 million). On July 14, July 21 and August 10, 2021, the Company drew down approximately $2.6 million (RMB17.0 million), $3.1 million (RMB20.0 million) and $4.6 million (RMB30.0 million) loans from this facility, respectively. On March 21, 2022, the Company obtained approximately $1.9 million (RMB13.0 million) under this credit line.   The Company made early repayment for the loans of approximately $2.6 million (RMB17.0 million) on May 18, 2022, $3.0 million (RMB20.0 million) on June 15, 2022 and $4.6 million (RMB30.0 million) on June 7, 2022. After the repayment, the Company obtained additional loans of approximately $2.4 million (RMB 17.0 million) on May 26, 2022, $4.3 million (RMB30.0 million) on June 13, 2022, and $2.9 million (RMB20.0 million) on June 23, 2022, under the same loan facility agreement entered in June 2021.   The aforementioned loan’s maturity 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 and benefited from the special refinancing policy for the transportation and logistics industry created by the People’s Bank of China and the Ministry of Transport, and the new interest rate was effective from the date of the contracts. On March 21, 2023, April 24, 2023, May 4, 2023, May 9, 2023, June 9, 2023, June 13, 2023 and June 19, 2023, the Company repaid approximately $1.9 million (RMB13.0 million) and $0.1 million (RMB 1.0 million), $2.3 million (RMB 16.0 million), $0.1 million (RMB1.0 million), $2.8 million (RMB19.0 million), $1.6 million (RMB11.0 million) and $2.8 million (RMB19.0 million) to the bank, respectively..   On March 15, 2023, the Company entered into a short-term loan facility agreement with Bank of China Fuzhou Jin’an Branch pursuant to which a total facility of up to approximately $11.1 million (RMB80.0 million) was made available to the Company. The loan facility term is from March 15, 2023 to September 1, 2023. Loans from this facility are collateralized by the real estate property and the land use rights, amounted to approximately $8.1 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 $55.4 million (RMB 400,000,000) 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, May 5, 2023, June 9, 2023 and June 20, 2023, the Company drew down approximately $1.8 million (RMB13.0 million), $2.4 million (RMB17.0 million), $2.8 million (RMB20.0 million) and $4.2 million (RMB30.0 million) under this line at a fixed interest rate of 2.5% per annum.   As of June 30, 2023, loan balance under such short-term loan facility was approximately $11.1 million (RMB80.0 million), fully withdrawn by the Company.   China Merchant Bank Fuzhou Branch   On December 24, 2021, the Company entered into a short-term loan facility agreement with China Merchant Bank Fuzhou Branch to replace a prior agreement with aggregate principal amount of approximately $9.2 million (RMB60.0 million). Pursuant to such new agreement, a total facility of up to an aggregate principal amount of approximately $11.6 million (RMB75.0 million) was made available to the Company. The loan facility is available for the Company to withdraw 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 property 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. The unpaid balance of original loan was approximately $9.3 million (RMB60.0 million) at the time of entering new agreement, which consisted of approximately $4.6 million (RMB30.0 million) received on August 3, 2021, $3.1 (RMB20.0 million) received on August 26, 2021 and $1.6 million (RMB10.0 million) received on September 7, 2021.   On January 14 and 21, 2022, approximately $2.3 million (RMB15.0 million) and $2.3 million (RMB15.0 million) were repaid by the Company, which loans were originally obtained in August 3, 2021. On January 14 and 21, 2022, the Company drew down approximately $2.4 million (RMB17.0 million) and $2.2 million (RMB15.0 million) of loans under this 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 (RMB17.0 million) and $2.2 million (RMB15.0 million) to the bank, respectively. After the repayments were made, the Company drew down approximately $2.3 million (RMB16.0 million) and $3.0 million (RMB21.0 million) of loans under this loan facility with an interest rate of 4.30% per annum. On June 15, 2023, the Company repaid approximately $5.3 million (RMB37.0 million) to the bank.   On January 28, February 28 and March 17, 2022, approximately $2.3 million (RMB15.0 million), $0.8 million (RMB5.0 million) and $1.5 million (RMB10.0 million) were repaid by the Company, respectively, which were the loans originally obtained in August 26 and September 7, 2021. On February 22, March 8 and April 12, 2022, the Company drew down approximately $1.4 million (RMB10.0 million), $0.7 million (RMB5.0 million) and $1.4 million (RMB10.0 million) of loans, respectively, under this loan facility with an interest rate of 4.50% per annum. On December 19, 2022, the Company repaid approximately $1.4 million (RMB10.0 million), $0.7 million (RMB5.0 million) and $1.4 million (RMB10.0 million) to the bank.   After the repayments were made, the Company drew down approximately $3.6 million (RMB25.0 million) on December 19, 2022 under this loan facility with an interest rate of 4.30% per annum before January 11, 2023, after January 11, 2023, the interest rate was reduced to 4.05% per annum according to the agreement. On December 22, 2022, the Company drew down approximately $1.4 million (RMB10.0 million) of loans under this new loan facility. On June 19, 2023 and June 21, 2023, the Company repaid $3.6 million (RMB25.0 million) and $1.4 million (RMB10.0 million), respectively.   On January 14, 2022, Fujian Shengfeng Logistics Co., Ltd. drew down approximately $1.5 million (RMB10.0 million) of loan with an interest rate of 4.50% per annum. On December 21, 2022, the Company repaid approximately $1.5 million (RMB10.0 million) to the bank.   On January 14, 2022, Fuqing Shengfeng Logistics Co., Ltd. drew down approximately $0.5 million (RMB3.0 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 (RMB3.0 million) to the bank. After the repayments were made. On December 21, 2022, Fuqing Shengfeng Logistics Co., Ltd. drew down approximately $0.4 million (RMB3.0 million) of loans under this loan facility with an interest rate of 4.30% per annum. On June 19, 2023, Fuqing Shengfeng Logistics Co., Ltd. repaid $0.4 million (RMB3.0 million).   On June 5, 2023, 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 2021. Pursuant to such new short-term loan facility agreement, a total facility of up to an aggregate principal amount of approximately $10.4 million (RMB75.0 million) was made available to the Company. The loan facility available for the Company to withdraw from June 5, 2023 to June 4, 2025. The short-term loans that may be drawn under this loan facility are collateralized by the real estate property valued at approximately $1.7 million (RMB12.3 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 $0.8 million (RMB6.0 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 June 15, 2023 and June 19, 2023, the Company drew down approximately $5.1 million (RMB37.0 million) and $2.1 million (RMB15.0 million) of loans under this new loan facility with an interest rate of 4.00% per annum, respectively.   On June 19, 2023, the Company drew down approximately $1.8 million (RMB13.0 million) of loans under this loan facility with an interest rate of 3.70% per annum respectively.   As of June 30, 2023, loan balance under such short-term loan facility was approximately $9.0 million (RMB65.0 million) and approximately $1.4 million (RMB 10.0 million) of the remaining credit line was available for the Company to withdraw.   On September 12, 2023, the Company drew down approximately $1.4 million (RMB10.0 million) of loan with an interest rate of 3.70% per annum.   Xiamen International Bank Co., Ltd. Fuzhou Branch   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 (RMB30.0 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). On August 19, 2021, the Company drew down approximately $4.3 million (RMB30.0 million) of loan at a fixed interest rate of 5.6% per annum. This short-term loan was guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company., the loan was fully repaid on August 9, 2022. On August 12, 2022, the Company drew down approximately $4.3 million (RMB30.0 million) of loan at a fixed interest rate of 5.6% per annum, On August 12, 2023, the Company fully repaid this loan.   As of June 30, 2023, loan balance under such short-term loan facility was approximately $4.3 million (RMB30.0 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 (RMB20.0 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 (RMB20.0 million) of the loan at a fixed interest rate of 5.5% per annum. 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 (RMB20.0 million) to the bank. On April 17, 2023, the Company drew down approximately $2.8 million (RMB20.0 million) of the loan at a fixed interest rate of 5.5% per annum.   As of June 30, 2023, loan balance under such short-term loan facility was approximately $2.8 million (RMB20 million).   Haixia Bank of Fujian Fuzhou Jin’an Branch   On April 2, 2021, the Company entered into a loan agreement with Haixia Bank of Fujian Fuzhou Jin’an Branch for a principal amount of approximately $1.5 million (RMB 10.0 million) at a fixed interest rate of 5.5% per annum. On December 14, 2021, the Company made early repayment of approximately $0.75 million (RMB5.0 million) to the bank. 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 (RMB10.0 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 Fuzhou Shengfeng Transportation Co., Ltd.. The Company received the loan proceeds on July 13, 2022 and fully repaid approximately $1.4 million (RMB10.0 million), subsequently, on July 7, 2023.   On September 26, 2023, the Company entered into a short-term facility agreement with Haixia Bank of Fujian Fuzhou Jin’an Branch, pursuant to which a total facility of up to approximately $1.4 million (RMB10.0 million) was made available to the Company. The loan facility is available for the Company to withdraw from September 26, 2023 to September 26, 2024. The loan facility 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 loan facility was further collateralized by 6 motor vehicles under Fuzhou Shengfeng Transportation Co., Ltd. On September 27, 2023, the Company drew down approximately $1.4 million (RMB10.0 million) of the loan at a fixed interest rate of 4.0% per annum.   Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch   In November 2021, 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 (RMB10.0 million) at a fixed interest rate of 5.50% 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. The 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 matured 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 (RMB 10.0 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 Sub-Branch   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 (RMB10.0 million). On March 26, 2021, Fuqing Shengfeng Logistics Co., Ltd. drew down approximately $0.9 million (RMB6.0 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 (RMB6.0 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 matured on January 21, 2023 and was repaid in full on January 28, 2023.    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 (RMB6.0 million) with repayment date on January 18, 2024. On February 7, 2023, Fuqing Shengfeng Logistics Co., Ltd. drew down approximately $0.8 million (RMB6.0 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.   As of June 30, 2023, the loan balance under such short-term loan facility was approximately $0.8 million (RMB6.0 million).   Industrial Bank 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 (RMB10.0 million) at a fixed interest rate of 4.35% per annum. Approximately $1.4 million (RMB9.0 million) and $0.2 million (RMB1.0 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 (RMB10.0 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 (RMB9.0 million) and $0.1 million (RMB1.0 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 June 30, 2023, loan balance under such short-term loan facility was approximately $1.4 million (RMB 9.9 million) and RMB 0.1 million of the remaining credit line was available for the Company to withdraw.   China Everbright Bank Co., Ltd Fuzhou Tongpan Branch   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 (RMB6.0 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 approximately $0.9 million (RMB6.0 million) were received by the Company on January 19, 2022.   On January 9, 2023, the Company repaid approximately $0.9 million (RMB6.0 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 $0.8 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 $0.8 million (RMB6.0 million) were received by the Company on January 9, 2023. Subsequently on July 7, 2023, Fuqing Shengfeng Logistics Co., Ltd. repaid approximately $0.8 million (RMB6.0 million) to the bank.   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 (RMB5.0 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 $0.7 (RMB5.3 million). On July 14, 2023, Shengfeng Logistics Guangxi Co., Ltd. fully repaid this loan.   For the six months ended June 30, 2023 and 2022, the interest expenses for the above short-term bank loans totaled approximately $0.8 million and $1.1 million, respectively.   As of June 30, 2023, the Company had an aggregate credit line of approximately $36.3 million (RMB262.0 million) and approximately $34.9 million (RMB251.9 million) was used.

Leases	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases	8. Leases   Operating leases as lessee   As of June 30, 2023 and December 31, 2022, the Company has operating leases recorded on its consolidated balance sheets for certain office spaces and warehouses that expire on various dates through 2032. 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 June 30, 2023     As of December 31, 2022                 Assets             Operating lease right-of-use assets, net   $ 21,130     $ 27,880                     Liabilities                 Operating lease liabilities, current   $ 7,382     $ 9,634   Operating lease liabilities, non-current   $ 13,401     $ 17,507                     Weighted average remaining lease term (in years)     5.9       5.1   Weighted average discount rate (%)     5.82       5.78     Information related to operating lease activities during the six months ended June 30, 2023 and 2022 are as follows:       Six months ended June 30,       2023     2022                 Operating lease right-of-use assets obtained in exchange for lease liabilities   $ 1,725   $ 3,396                     Operating lease expense                 Amortization of right-of-use assets     4,515       4,381   Interest of lease liabilities     694       859   Total   $ 5,209     $ 5,240     Maturities of lease liabilities were as follows:       Lease Liabilities           Twelve months ending June 30,       2024   $ 7,598   2025     5,314   2026     3,592   2027     1,841   2028     1,705   Thereafter     3,845   Total lease payments     23,895   Less: imputed interest     (3,112 ) Total   $ 20,783

Taxes	6 Months Ended
	Jun. 30, 2023
Taxes [Abstract]
Taxes	9. 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 subsidiary incorporated in Hong Kong is subject to 16.5% on its taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiary 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, the VIE and the 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 $0.5 million and $0.2 million for the six months ended June 30, 2023 and 2022, respectively and the impact to EPS is not significant for the six months ended June 30, 2023 and 2022.   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 is renewing the HNTEs. 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% to 5% are applied to these entities.   i) The components of income before income taxes are as follows:       Six months ended June 30,       2023     2022                 Non-PRC   $ (252 )   $ -   PRC     8,124       2,826   Total   $ 7,872     $ 2,826     ii) The components of the income tax provision are as follows:       Six months ended June 30,       2023     2022                 Current   $ 709     $ 484   Deferred     700       (113 ) Total   $ 1,409     $ 371     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 six months ended June 30, 2023 and 2022:       Six months ended June 30,       2023     2022                 PRC statutory income tax rate     25.0 %     25.0 % Effect of preferential tax rates (1)     (5.7 )%     (6.9 )% Eligible additional deduction     (2.9 )%     (5.5 )% Impact of different tax rates in other jurisdictions     0.8 %     - % Non-taxable and exemptions     (0.5 )%     - % Permanent differences (2)     1.2 %     0.5 % Effective income tax rate     17.9 %     13.1 %   (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 June 30, 2023     As of December 31, 2022                 Deferred tax assets:             Net operating losses carryforward   $ 1,573     $ 2,300   Allowance for doubtful accounts     793       874   Deferred income (a)     266       279   Intangible assets (b)     137       134   Subtotal     2,769       3,587   Less: valuation allowance     -       -   Deferred tax assets   $ 2,769     $ 3,587     (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 were provided for the Company’s certain subsidiaries with continuous losses as of June 30, 2023 and December 31, 2022. As of June 30, 2023 and December 31, 2022, there were approximately $6.6 million and $9.5 million net operating loss carryforwards in certain subsidiaries, respectively. The net operating tax loss carryforwards will expire from 2024 to 2028.   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 June 30, 2023 and December 31, 2022, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur interests and penalties tax for the six months ended June 30, 2023 and 2022.   (b) Tax payable   Tax payable consisted of the following:       As of June 30, 2023     As of December 31, 2022                 Value-added tax payable   $ 2,487     $ 1,828   Income tax payable     568       185   Other taxes payable     147       194   Total   $ 3,202     $ 2,207

Shareholders' Equity	6 Months Ended
	Jun. 30, 2023
Shareholders' Equity [Abstract]
Shareholders' equity	10. 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 $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 $0.0001 per share.   On April 4, 2023, the Company completed its initial public offering (the “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. In connection with the IPO, the Company issued to Univest Securities, LLC, and its affiliates, as the representative of the underwriters, warrants that are 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 Class A Ordinary Shares at a per share price of $4.46.   As of June 30, 2023 and December 31, 2022, 40,520,000 and 38,120,000 Class A Ordinary shares were issued and outstanding, respectively; 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   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 $4.0 million as of June 30, 2023 and December 31, 2022, 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 the “Shengfeng PRC entities”) only out of 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 their registered capital. In addition, Shengfeng PRC entities may allocate a portion of their after-tax profits based on PRC accounting standards to enterprise expansion fund and staff bonus and welfare fund at their discretion. Shengfeng PRC entities may allocate a portion of their after-tax profits based on PRC accounting standards to a discretionary surplus fund at their 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 regulations 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 June 30, 2023 and December 31, 2022, amounts restricted are the paid-in-capital and statutory reserve of Shengfeng PRC entities, which amounted to approximately $79.6 million and $79.6 million, respectively.

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies [Abstract]
Commitments and contingencies	11. Commitments and contingencies   (a) Lease commitments   The Company’s commitment for minimum lease payments under the remaining operating leases as of June 30, 2023 is $2.7 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 June 30, 2023, 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 (RMB 7.1 million) was frozen in bank due to the pending lawsuits, which was included in restricted cash as of June 30, 2023. As of the date of this unaudited condensed consolidated financial statements, the above-mentioned amount is still frozen in bank and the other legal proceedings or disputes have no material impact on the Company’s business or financial performances.

Subsequent Events	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent events	12. Subsequent events   The Company has evaluated the impact of events that have occurred subsequent to June 30, 2023, through the issuance date of unaudited condensed consolidated financial statements, and concluded that no subsequent events have occurred that would require recognition in the unaudited condensed consolidated financial statements or disclosure in the notes to unaudited condensed consolidated financial statements.

Accounting Policies, by Policy (Policies)	6 Months Ended
	Jun. 30, 2023
Summary of Significant Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The accompanying unaudited condensed 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 U.S. Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2023 and 2022 are not necessarily indicative of the results that may be expected for the full year. The information included in this interim report should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto included in Shengfeng’s annual financial statements for the fiscal year ended December 31, 2022 filed with the SEC on May 1, 2023.
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE and the 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, the VIE and the 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, the VIE and the 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, allowance 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.
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 loss amounted to $9,500 and $5,609 as of June 30, 2023 and December 31, 2022, respectively. The balance sheet amounts, with the exception of shareholders’ equity, at June 30, 2023 and December 31, 2022 were translated at RMB7.2258 and RMB6.9646, respectively. The shareholders’ equity accounts were stated at their historical rates. The average translation rates applied to the statement of income accounts for the six months ended June 30, 2023 and 2022 were RMB6.9291 and RMB6.4835 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 and cash equivalents	Cash and cash equivalents Cash and cash equivalents represent 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 mainland of China. Cash balances in bank accounts in mainland China are insured by the People’s Bank of China Financial Stability Department (“FSD”) while there is a RMB 500,000 deposit insurance limit for a legal entity’s aggregated balance at each bank. As of June 30, 2023 and December 31, 2022, the Company has approximately $29.1 million and $21.3 million, respectively, of cash in banks, most held in the banks located in the mainland of China. Most of cash balances as of June 30, 2023 and December 31, 2022 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 balances in designated bank accounts as security for payment processing and lawsuits. 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 their fair value as of June 30, 2023 and December 31, 2022 as the interest rates applied reflect the current market yield for comparable financial instruments.
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 will update it if necessary. The allowance for doubtful accounts was approximately $2.8 million and $3.1 million as of June 30, 2023 and December 31, 2022, respectively.
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 six months ended June 30, 2023 and 2022.
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 fees, consulting fees related to the registration preparation, SEC filings 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 unaudited condensed consolidated financial statements for the six months ended June 30, 2023 and 2022 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 management services. No practical expedients were used when adoption of ASC 606 occurred. 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’ orders. 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 management services The Company derives revenue from the warehouse storage management services provided to third-party companies, including handling services, security and other services. The promised services in each warehouse 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 customers with warehouse storage management services during the service period. Service fees 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 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. U.S. GAAP requires us to evaluate, using a control model, whether the Company itself promises to provide services to the customers (as a principal) or it will 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 its 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 June 30, 2023 and December 31, 2022.   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 $0.9 million and $0.8 million for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023 and December 31, 2022, contract liabilities amounted to approximately $1.2 million and $1.1 million, respectively. Disaggregated information of revenues by services:     Six Months Ended June 30,       2023     2022                 Revenues:             Transportation   $ 173,989     $ 154,614   Warehouse storage management service     9,315       10,591   Others     1,667       1,333   Total revenues   $ 184,971       166,538   As of June 30, 2023 and December 31, 2022, the Company had outstanding contracts for providing transportation and warehouse management services amounting to approximately $1.2 million and $1.0 million, all of which is expected to be completed within 12 months from June 30, 2023 and December 31, 2022, 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:     Six Months Ended June 30,       2023     2022                 Fujian   $ 115,246     $ 95,174   Beijing     14,189       15,701   Sichuan     9,986       7,683   Zhejiang     7,646       8,011   Shandong     7,410       6,295   Others     30,494       33,674   Total   $ 184,971       166,538
Leases	Leases The Company has elected the package of practical expedients permitted which allows the Company not to reassess the following at the 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 contains 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 the 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 six months ended June 30, 2023 and 2022. All of the tax returns of the Company’s subsidiaries in the 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 U.S. 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 six months ended June 30, 2023 and 2022, 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 June 30, 2023 and December 31, 2022, approximately $31.7 million and $23.4 million were deposited with financial institutions located in the PRC, respectively, where there is a RMB500,000 deposit insurance limit for a legal entity's aggregated balance at each bank. As a result, the amounts not covered by deposit insurance were $29.1 million and $22.2 million as of June 30, 2023 and December 31, 2022, respectively.   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 3.75% in the six months ended June 30, 2023 from December 31, 2022 to June 30, 2023 and depreciated by 9.24% from December 31, 2021 to December 31, 2022. 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 represented greater than 10% of the total revenue of the Company in any of the periods presented. For the six months ended June 30, 2023, Fujian Jinwang Yuntong Logistics Technology Co., Ltd. contributed approximately 28.8% of total cost of revenue of the Company. For the six months ended June 30, 2022, Anhui Luge Transportation Co., Ltd. and Fujian Jinwang Yuntong Logistics Technology Co., Ltd contributed approximately 13.9% and 12.8% of total cost of revenue of the Company, respectively.  As of June 30, 2023 and December 31, 2022, no customers accounted more than 10% of the account receivables. As of June 30, 2023, no supplier contributed more than 10% of total account payable balances. As of December 31, 2022, Fujian Jinwang Yuntong Logistics Technology Co., Ltd., contributed approximately 13.4% of total account payable balances.
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 adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.  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 June 2022, the FASB issued ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The update clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The update also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The update also requires certain additional disclosures for equity securities subject to contractual sale restrictions. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. As an emerging growth company, the standard is effective for the Company for the year ended December 31, 2025. The Company is in the process of evaluating the impact of the new guidance on its 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 Operations (Tables)	6 Months Ended
	Jun. 30, 2023
Organization and Nature of Operations [Abstract]
Schedule of Consolidated Financial Statements	The accompanying consolidated financial statements reflect the activities of the Company and each of the following entities, including its WFOE and VIE: Name of subsidiaries   Place of incorporation   Date of incorporation or acquisition   Percentage of direct or indirect     Principal activities                     Shengfeng Holding Limited (“Shengfeng HK”)   Hong Kong   August 18, 2020   100 %   Investment holding of Tianyu Tianyu Shengfeng Logistics Group Co., Ltd. (“Tianyu”, formerly known as “Fujian Tianyu Shengfeng Logistics Co., Ltd “)   Fujian, the PRC   December 16, 2020   100 %   Investment holding of Shengfeng VIE                     VIE and VIE’s subsidiaries:                   Shengfeng Logistics Group Co., Ltd. (“Shengfeng VIE” or “Shengfeng Logistics”)   Fujian, the PRC   December 7, 2001   100 %   Transportation and warehouse storage management service Fuqing Shengfeng Logistics Co., Ltd.   Fujian, the PRC   April 15, 2011   100 %   Transportation and warehouse storage management service Xiamen Shengfeng Logistics Co., Ltd.   Fujian, the PRC   December 22, 2011   100 %   Transportation and warehouse storage management service Guangdong Shengfeng Logistics Co., Ltd.   Guangdong, the PRC   December 30, 2011   100 %   Transportation and warehouse storage management service Hainan Shengfeng Supply Chain Management Co., Ltd.   Hainan, the PRC   August 18, 2020   100 %   Transportation and warehouse storage management service Beijing Tianyushengfeng E-commerce Technology Co., Ltd.   Beijing, the PRC   January 9, 2004   100 %   Transportation and warehouse storage management service Beijing Shengfeng Supply Chain Management Co., Ltd.   Beijing, the PRC   April 13, 2016   100 %   Transportation and warehouse storage management service Shengfeng Logistics (Guizhou) Co., Ltd.   Guizhou, the PRC   August 15, 2017   100 %   Transportation and warehouse storage management service Shengfeng Logistics (Tianjin) Co., Ltd.   Tianjin, the PRC   March 8, 2016   100 %   Transportation and warehouse storage management service Shengfeng Logistics (Shandong) Co., Ltd.   Shandong, the PRC   March 15, 2016   100 %   Transportation and warehouse storage management service Shengfeng Logistics Hebei Co., Ltd.   Hebei, the PRC   February 17, 2016   100 %   Transportation and warehouse storage management service Shengfeng Logistics (Henan) Co., Ltd.   Henan, the PRC   March 28, 2016   100 %   Transportation and warehouse storage management service Shengfeng Logistics (Liaoning) Co., Ltd.   Liaoning, the PRC   March 2, 2016   100 %   Transportation and warehouse storage management service   Name of subsidiaries   Place of incorporation   Date of incorporation or acquisition   Percentage of direct or indirect     Principal activities                     Shengfeng Logistics (Yunnan) Co., Ltd.   Yunnan, the PRC   January 25, 2016   100 %   Transportation and warehouse storage management service Shengfeng Logistics (Guangxi) Co., Ltd.   Guangxi, the PRC   February 1, 2016   100 %   Transportation and warehouse storage management service Hubei Shengfeng Logistics Co., Ltd.   Hubei, the PRC   December 15, 2010   100 %   Transportation and warehouse storage management service Shengfeng Logistics Group (Shanghai) Supply Chain Management Co., Ltd.   Shanghai, the PRC   August 26, 2015   100 %   Transportation and warehouse storage management service Shanghai Shengxu Logistics Co., Ltd.   Shanghai, the PRC   June 4, 2003   100 %   Transportation and warehouse storage management service Hangzhou Shengfeng Logistics Co., Ltd.   Zhejiang, the PRC   June 10, 2010   100 %   Transportation and warehouse storage management service Nanjing Shengfeng Logistics Co., Ltd.   Jiangsu, the PRC   August 30, 2011   100 %   Transportation and warehouse storage management service Suzhou Shengfeng Logistics Co., Ltd.   Jiangsu, the PRC   January 14, 2005   90 %   Transportation and warehouse storage management service Suzhou Shengfeng Supply Chain Management Co., Ltd. (a)   Jiangsu, the PRC   August 9, 2019   100 %   Transportation and warehouse storage management service Shengfeng Supply Chain Management Co., Ltd.   Fujian, the PRC   June 19, 2014   100 %   Transportation and warehouse storage management service Fuzhou Shengfeng Transportation Co., Ltd.   Fujian, the PRC   April 18, 2019   100 %   Transportation and warehouse storage management service Sichuan Shengfeng Logistics Co., Ltd.   Sichuan, the PRC   June 27, 2019   100 %   Transportation and warehouse storage management service Fujian Shengfeng Logistics Co., Ltd.   Fujian, the PRC   April 2, 2020   100 %   Transportation and warehouse storage management service Fujian Dafengche Information Technology Co. Ltd.   Fujian, the PRC   August 26, 2020   100 %   Software engineering Ningde Shengfeng Logistics Co. Ltd.(b)   Fujian, the PRC   November 12, 2018   51 %   Transportation and warehouse storage management service Fujian Fengche Logistics Co., Ltd. (c)   Fujian, the PRC   October 28, 2020   0 %   Transportation service Shengfeng Logistics (Zhejiang) Co., Ltd.   Zhejiang, the PRC   February 1, 2021   100 %   Transportation and warehouse storage management service Chengdu Shengfeng Supply Chain Management Co., Ltd.   Chengdu, the PRC   October 12, 2021   100 %   Supply chain management service Shengfeng Logistics Group (Ningde) Supply Chain Management Co., Ltd. (d)   Fujian, the PRC     September 23, 2022   100 %   Supply chain management service                     Significant subsidiaries of Tianyu:           Yichun Shengfeng Logistics Co., Ltd. (e)   Jiangxi, the PRC   December 1, 2022   100 %   Transportation and warehouse storage management service Fujian Shengfeng Smart Technology Co., Ltd. (f)   Fujian, the PRC   April 20, 2023   100 %   Property management service Shenzhen Tianyu Shengfeng Supply Chain Management Co., Ltd. (g)   Shenzhen, the PRC   May 19, 2023   100 %   Supply chain management service Fujian Pingtan Tianyu Shengfeng Technology Co., Ltd(h)   Fujian, the PRC   September 27, 2023   100 %   Supply chain management service   (a) On July 8, 2021, Suzhou Shengfeng Supply Chain Management Co, Ltd. became a wholly owned subsidiary of Shengfeng Logistics.   (b) On January 5, 2022, Shengfeng Logistics entered into a share transfer agreement with Fuzhou Puhui Technology Co., Ltd. (“Fuzhou Puhui”), an unrelated third party, to transfer its 49% equity interest in Ningde Shengfeng Logistics Co., Ltd. (“Ningde Shengfeng”) to Fuzhou Puhui. After the transaction, the Company owned a 51% equity interest in Ningde Shengfeng. (c) On June 5, 2023, 100% equity interest in Fujian Fengche Logistics Co., Ltd. was transferred to third parties. (d) On September 23, 2022, Shengfeng Logistics Group (Ningde) Supply Chain Management Co., Ltd. was set up in Fujian, China. This entity is fully owned by Shengfeng Logistics Group Co., Ltd. and will provide supply chain management service in the future. (e) On May 29, 2023, Yichun Shengfeng Logistics Co., Ltd. became a wholly owned subsidiary of Tianyu. (f) On April 20, 2023, Fujian Shengfeng Smart Technology Co., Ltd. was set up in Fujian, China. This entity is fully owned by Tianyu and will provide property management service in the future. (g) On May 19, 2023, Shenzhen Tianyu Shengfeng Supply Chain Management Co., Ltd. was set up in Shenzhen, China. This entity is fully owned by Tianyu and will provide supply chain management service in the future.   (h) On September 27, 2023, Fujian Pingtan Tianyu Shengfeng Technology Co., Ltd was set up in Fujian, China. 51% of the equity interest is owned by Tianyu, and 49% of the equity interest is owned by Shengfeng Supply Chain Management Co., Ltd. This entity will provide supply chain management service in the future.

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2023
Summary of Significant Accounting Policies [Abstract]
Schedule of Estimated Useful Lives	The estimated useful lives are as follows:   Useful life Land use right 32 - 50 years Licensed software 5 years
Schedule of Disaggregated Information of Revenues by Services	Disaggregated information of revenues by services:     Six Months Ended June 30,       2023     2022                 Revenues:             Transportation   $ 173,989     $ 154,614   Warehouse storage management service     9,315       10,591   Others     1,667       1,333   Total revenues   $ 184,971       166,538
Schedule of Disaggregated Information of Revenues by Geographic Locations	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:     Six Months Ended June 30,       2023     2022                 Fujian   $ 115,246     $ 95,174   Beijing     14,189       15,701   Sichuan     9,986       7,683   Zhejiang     7,646       8,011   Shandong     7,410       6,295   Others     30,494       33,674   Total   $ 184,971       166,538

Accounts Receivable, Net (Tables)	6 Months Ended
	Jun. 30, 2023
Accounts Receivable, Net [Abstract]
Schedule of Accounts Receivable, Net	Accounts receivable, net consisted of the following:     As of June 30, 2023     As of December 31, 2022                 Accounts receivable   $ 78,557     $ 92,225   Less: Allowance for doubtful accounts     (2,783 )     (3,115 ) Total   $ 75,774     $ 89,110
Schedule of Movement of Allowance of Doubtful Accounts	Movement of allowance of doubtful accounts     Six Months Ended June 30, 2023     Year Ended December 31, 2022                 Beginning balance   $ 3,115     $ 2,398   (Recovery of) provision for doubtful accounts     (16 )     1,130   Written-off     (213 )     (178 ) Exchange rate effect     (103 )     (235 ) Ending balance   $ 2,783     $ 3,115

Intangible Assets, Net (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets with Definite Useful Lives Primarily Consisted of Land use Rights an Licensed Software	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 June 30, 2023     As of December 31, 2022                 Land use rights (a)   $ 13,806     $ 8,011   Licensed software     1,997       2,133   Subtotal     15,803       10,144   Less: accumulated amortization     (3,566 )     (3,433 ) Intangible assets, net   $ 12,237     $ 6,711   (a) In January 2022, the Company signed an agreement with Ningde City government to purchase a land use right for approximately $5.9 million (RMB 42,690,000) and the prepayment was made to the local government accordingly. The Company obtained certificate of land-use right and the transaction was completed in June 2023. The prepaid balance was transferred from other non-current assets to intangible assets. The term of the land use right is 50 years from 2023 to 2073.
Schedule of Future Amortization for the Intangible Assets	The future amortization for the intangible assets is expected to be as follows:   Twelve months ending June 30,   Estimated amortization expense           2023   $ 637   2024     531   2025     424   2026     403   2027     358   Thereafter     9,884   Total   $ 12,237

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Schedule of Transactions with Related Parties	Significant transactions with related parties were as follows:     Six Months Ended June 30,       2023     2022                 Transportation services to Fujian Bafang   $      -     $ 18   Total   $ -       18       Six Months Ended June 30,       2023     2022                 Transportation services from Fujian Bafang   $ 472     $ 431   Lease services from Fuzhou Tianyu   $ 109     $ 152
Schedule of Balances with Related Parties	Significant balances with related parties were as follows:     As of June 30, 2023     As of December 31, 2022                 Due from related parties             Fuzhou Tianyu   $ 41     $ 42   Total   $ 41     $ 42       As of June 30, 2023     As of December 31, 2022                 Due to related parties             Fujian Bafang (a)   $ 1,416     $ 1,694   Fuzhou Tianyu     123       84   Fuzhou Tianyu Management     34       36   Yongteng Liu     -       600   Total   $ 1,573     $ 2,414   (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.

Notes Payables (Tables)	6 Months Ended
	Jun. 30, 2023
Notes Payables [Abstract]
Schedule of Notes Payables	As of June 30, 2023     As of December 31, 2022                 Bank acceptance notes payable issued by Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch (a)   $ 1,107     $ 2,046   Commercial acceptance notes payable guaranteed by China Minsheng Bank Fuzhou Branch (b)     8,304       -   Total   $ 9,411     $ 2,046   (a) On March 20, 2023, Shanghai Pudong Development Bank Co., Ltd. issued bank acceptance notes payable of approximately $1.1 million (RMB8.0 million) to the Company with due date on September 30, 2023. The Company was required to maintain restricted cash deposits of approximately $0.3 million (RMB2.4 million) in such bank, in order to ensure future credit availability. These notes were fully paid upon maturity and the restricted deposit was also released upon the note repayments.   (b) In February 2023, the Company issued commercial acceptance notes payable of approximately $8.3 million (RMB60.0 million) and guaranteed by China Minsheng Bank Fuzhou Branch with a due date on February 6, 2024. The commercial acceptance notes were collateralized by the real estate property valued at approximately $8.0 million and the land use rights for the property located at Dapu village, Honglu street, Fuqing City, Fuzhou City, Fujian Province, PRC, valued at approximately $0.9 million, owned by the Company and were further guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and his brother, Yongteng Liu.

Short-Term Bank Loans (Tables)	6 Months Ended
	Jun. 30, 2023
Short-Term Bank Loans [Abstract]
Schedule of Short-Term Bank Loans from Commercial Banks	The following table presents short-term bank loans from commercial banks as of June 30, 2023 and December 31, 2022:     As of June 30, 2023     As of December 31, 2022                 China Minsheng Bank Fuzhou Branch   $ -     $ 10,769   Bank of China Fuzhou Jin’an Branch     11,071       11,487   China Merchant Bank Fuzhou Branch     8,996       10,769   Xiamen International Bank Co., Ltd. Fuzhou Branch     6,920       7,179   Haixia Bank of Fujian Fuzhou Jin’an Branch     1,384       1,436   Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch     1,384       1,436   Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch     1,384       1,436   Industrial Bank Fuzhou Huqian Sub Branch     830       861   Industrial Bank Fuzhou Branch     1,370       1,421   China Everbright Bank Co., Ltd Fuzhou Tongpan Branch     830       861   Guangxi Beibu Gulf Bank Nanning Branch     692       -   Total   $ 34,861     $ 47,655

Leases (Tables)	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Schedule of Operating Lease Activities	The following tables shows ROU assets and lease liabilities, and the associated financial statement line items:     As of June 30, 2023     As of December 31, 2022                 Assets             Operating lease right-of-use assets, net   $ 21,130     $ 27,880                     Liabilities                 Operating lease liabilities, current   $ 7,382     $ 9,634   Operating lease liabilities, non-current   $ 13,401     $ 17,507                     Weighted average remaining lease term (in years)     5.9       5.1   Weighted average discount rate (%)     5.82       5.78
Schedule of Operating Lease Activities	Information related to operating lease activities during the six months ended June 30, 2023 and 2022 are as follows:     Six months ended June 30,       2023     2022                 Operating lease right-of-use assets obtained in exchange for lease liabilities   $ 1,725   $ 3,396                     Operating lease expense                 Amortization of right-of-use assets     4,515       4,381   Interest of lease liabilities     694       859   Total   $ 5,209     $ 5,240
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities were as follows:     Lease Liabilities           Twelve months ending June 30,       2024   $ 7,598   2025     5,314   2026     3,592   2027     1,841   2028     1,705   Thereafter     3,845   Total lease payments     23,895   Less: imputed interest     (3,112 ) Total   $ 20,783

Taxes (Tables)	6 Months Ended
	Jun. 30, 2023
Taxes [Abstract]
Schedule of Income Before Income Taxes	The components of income before income taxes are as follows:     Six months ended June 30,       2023     2022                 Non-PRC   $ (252 )   $ -   PRC     8,124       2,826   Total   $ 7,872     $ 2,826
Schedule of the Income Tax Provision	The components of income before income taxes are as follows:     Six months ended June 30,       2023     2022                 Current   $ 709     $ 484   Deferred     700       (113 ) Total   $ 1,409     $ 371
Schedule of 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 six months ended June 30, 2023 and 2022:     Six months ended June 30,       2023     2022                 PRC statutory income tax rate     25.0 %     25.0 % Effect of preferential tax rates (1)     (5.7 )%     (6.9 )% Eligible additional deduction     (2.9 )%     (5.5 )% Impact of different tax rates in other jurisdictions     0.8 %     - % Non-taxable and exemptions     (0.5 )%     - % Permanent differences (2)     1.2 %     0.5 % Effective income tax rate     17.9 %     13.1 % (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 Deferred Tax Assets and Liabilities	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 June 30, 2023     As of December 31, 2022                 Deferred tax assets:             Net operating losses carryforward   $ 1,573     $ 2,300   Allowance for doubtful accounts     793       874   Deferred income (a)     266       279   Intangible assets (b)     137       134   Subtotal     2,769       3,587   Less: valuation allowance     -       -   Deferred tax assets   $ 2,769     $ 3,587   (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	Tax payable consisted of the following:     As of June 30, 2023     As of December 31, 2022                 Value-added tax payable   $ 2,487     $ 1,828   Income tax payable     568       185   Other taxes payable     147       194   Total   $ 3,202     $ 2,207

Organization and Nature of Operations (Details) $ in Thousands, ¥ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2023 CNY (¥)	Sep. 27, 2023	Jun. 05, 2023	Jan. 05, 2022
Organization and Nature of Operations (Details) [Line Items]
Paid in capital	$ 27,170	¥ 189.6
Ningde Shengfeng.[Member]
Organization and Nature of Operations (Details) [Line Items]
Equity interest percentage					51.00%
Fujian Fengche Logistics Co., Ltd.(e) [Member]
Organization and Nature of Operations (Details) [Line Items]
Equity interest percentage				100.00%
Tianyu [Member]
Organization and Nature of Operations (Details) [Line Items]
Equity interest percentage			51.00%
Shengfeng Supply Chain Management Co., Ltd. [Member]
Organization and Nature of Operations (Details) [Line Items]
Equity interest percentage			49.00%
Ningde Shengfeng Logistics Co., Ltd. [Member]
Organization and Nature of Operations (Details) [Line Items]
Equity interest percentage					49.00%

Organization and Nature of Operations (Details) - Schedule of Consolidated Financial Statements	6 Months Ended
	Jun. 30, 2023
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	100.00%
Principal activities	Transportation and warehouse storage management service
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	100.00%
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	90.00%
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	[1]
Date of incorporation or acquisition	Aug. 09, 2019	[1]
Percentage of direct or indirect	100.00%	[1]
Principal activities	Transportation and warehouse storage management service	[1]
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	100.00%
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	100.00%
Principal activities	Transportation and warehouse storage management service
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	100.00%
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	100.00%
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	100.00%
Principal activities	Software engineering
Ningde Shengfeng Logistics Co. Ltd. [Member]
Condensed Financial Statements, Captions [Line Items]
Place of incorporation	Fujian, the PRC	[2]
Date of incorporation or acquisition	Nov. 12, 2018	[2]
Percentage of direct or indirect	51.00%	[2]
Principal activities	Transportation and warehouse storage management service	[2]
Fujian Hangfeng Logistics Technology Co., Ltd. [Member]
Condensed Financial Statements, Captions [Line Items]
Place of incorporation	Fujian, the PRC	[3]
Date of incorporation or acquisition	Oct. 28, 2020	[3]
Percentage of direct or indirect	0.00%	[3]
Principal activities	Transportation service	[3]
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	100.00%
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	100.00%
Principal activities	Supply chain management service
Shengfeng Logistics Group (Ningde) Supply Chain Management Co., Ltd. [Member]
Condensed Financial Statements, Captions [Line Items]
Place of incorporation	Fujian, the PRC	[4]
Date of incorporation or acquisition	Sep. 23, 2022	[4]
Percentage of direct or indirect	100.00%	[4]
Principal activities	Supply chain management service	[4]
Yichun Shengfeng Logistics Co., Ltd. [Member]
Condensed Financial Statements, Captions [Line Items]
Place of incorporation	Jiangxi, the PRC	[5]
Date of incorporation or acquisition	Dec. 01, 2022	[5]
Percentage of direct or indirect	100.00%	[5]
Principal activities	Transportation and warehouse storage management service	[5]
Fujian Shengfeng Smart Technology Co., Ltd. [Member]
Condensed Financial Statements, Captions [Line Items]
Place of incorporation	Fujian, the PRC	[6]
Date of incorporation or acquisition	Apr. 20, 2023	[6]
Percentage of direct or indirect	100.00%	[6]
Principal activities	Property management service	[6]
Shenzhen Tianyu Shengfeng Supply Chain Management Co., Ltd [Member]
Condensed Financial Statements, Captions [Line Items]
Place of incorporation	Shenzhen, the PRC	[7]
Date of incorporation or acquisition	May 19, 2023	[7]
Percentage of direct or indirect	100.00%	[7]
Principal activities	Supply chain management service	[7]
Fujian Fengche Logistics Co., Ltd.(e) [Member]
Condensed Financial Statements, Captions [Line Items]
Place of incorporation	Fujian, the PRC	[8]
Date of incorporation or acquisition	Sep. 27, 2023	[8]
Percentage of direct or indirect	100.00%	[8]
Principal activities	Supply chain management service	[8]
[1] On July 8, 2021, Suzhou Shengfeng Supply Chain Management Co, Ltd. became a wholly owned subsidiary of Shengfeng Logistics. [2] On January 5, 2022, Shengfeng Logistics entered into a share transfer agreement with Fuzhou Puhui Technology Co., Ltd. (“Fuzhou Puhui”), an unrelated third party, to transfer its 49% equity interest in Ningde Shengfeng Logistics Co., Ltd. (“Ningde Shengfeng”) to Fuzhou Puhui. After the transaction, the Company owned a 51% equity interest in Ningde Shengfeng. [3] On June 5, 2023, 100% equity interest in Fujian Fengche Logistics Co., Ltd. was transferred to third parties. [4] On September 23, 2022, Shengfeng Logistics Group (Ningde) Supply Chain Management Co., Ltd. was set up in Fujian, China. This entity is fully owned by Shengfeng Logistics Group Co., Ltd. and will provide supply chain management service in the future. [5] On May 29, 2023, Yichun Shengfeng Logistics Co., Ltd. became a wholly owned subsidiary of Tianyu. [6] On April 20, 2023, Fujian Shengfeng Smart Technology Co., Ltd. was set up in Fujian, China. This entity is fully owned by Tianyu and will provide property management service in the future. [7] On May 19, 2023, Shenzhen Tianyu Shengfeng Supply Chain Management Co., Ltd. was set up in Shenzhen, China. This entity is fully owned by Tianyu and will provide supply chain management service in the future. [8] On September 27, 2023, Fujian Pingtan Tianyu Shengfeng Technology Co., Ltd was set up in Fujian, China. 51% of the equity interest is owned by Tianyu, and 49% of the equity interest is owned by Shengfeng Supply Chain Management Co., Ltd. This entity will provide supply chain management service in the future.

Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands		6 Months Ended	12 Months Ended
	Jan. 01, 2019 USD ($)	Jun. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($)	Jun. 30, 2023 CNY (¥) shares	Dec. 31, 2022 CNY (¥)	Jun. 30, 2022 USD ($)	Jun. 30, 2022 CNY (¥)
Summary of Significant Accounting Policies (Details) [Line Items]
Other comprehensive income loss		$ 9,500	$ 5,609
Shareholders’ equity (in Yuan Renminbi) | ¥				¥ 7.2258	¥ 6.9646
Average translation amount (in Yuan Renminbi) | ¥				6.9291			¥ 6.4835
Average translation per share (in Dollars per share) | $ / shares		$ 1
Deposit (in Yuan Renminbi) | ¥				¥ 500,000
Cash in banks		$ 29,100	21,300
Revenue recognized contract liabilities		900				$ 800
Contract liabilities		1,200	1,100
Outstanding contracts		$ 1,200	1,000
Lease term		12 months		12 months
Operating leases term		1 year		1 year
Operating lease liabilities		$ 2,700
VAT rates		13.00%		13.00%
Tax authorities		5 years
Tax benefit rate		50.00%
VIE least rate		10.00%
Statutory reserves rate		50.00%
Deposited amount		$ 31,700	23,400
Deposit insurance limit		$ 29,100	$ 22,200	¥ 500,000
Percentage depreciated		3.75%	9.24%
Percentage of total revenue		10.00%		10.00%		12.80%	12.80%
Percentage of account receivables		10.00%	10.00%
Percentage of account payable balances		10.00%	13.40%
Number of reportable segment		1
ROU assets [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Operating lease liabilities	$ 28,000
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
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		$ 2,800	$ 3,100
Fujian Jinwang Yuntong Logistics Technology Co., Ltd. [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Percentage of total revenue		28.80%		28.80%		13.90%	13.90%
Class A Ordinary Share [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Convertible share (in Shares) | shares		1		1

Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives	6 Months Ended
	Jun. 30, 2023
Land use right [Member] | Minimum [Member]
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items]
Estimated useful lives	32 years
Land use right [Member] | Maximum [Member]
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items]
Estimated useful lives	50 years
Licensed software [Member]
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items]
Estimated useful lives	5 years

Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Information of Revenues by Services - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Revenues:
Transportation	$ 173,989	$ 154,614
Warehouse storage and storage management service	9,315	10,591
Others	1,667	1,333
Total revenues	$ 184,971	$ 166,538

Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Information of Revenues by Geographic Locations - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Information of Revenues by Geographic Locations [Line Items]
Total	$ 184,971	$ 166,538
Fujian [Member]
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Information of Revenues by Geographic Locations [Line Items]
Total	115,246	95,174
Beijing [Member]
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Information of Revenues by Geographic Locations [Line Items]
Total	14,189	15,701
Sichuan [Member]
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Information of Revenues by Geographic Locations [Line Items]
Total	9,986	7,683
Zhejiang [Member]
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Information of Revenues by Geographic Locations [Line Items]
Total	7,646	8,011
Shandong [Member]
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Information of Revenues by Geographic Locations [Line Items]
Total	7,410	6,295
Others [Member]
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Information of Revenues by Geographic Locations [Line Items]
Total	$ 30,494	$ 33,674

Accounts Receivable, Net (Details) - Schedule of Accounts Receivable, Net - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Schedule of Accounts Receivable, Net [Abstract]
Accounts receivable	$ 78,557	$ 92,225
Less: Allowance for doubtful accounts	(2,783)	(3,115)
Total	$ 75,774	$ 89,110

Accounts Receivable, Net (Details) - Schedule of Movement of Allowance of Doubtful Accounts - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Schedule of Movement of Allowance of Doubtful Accounts [Abstract]
Beginning balance	$ 3,115	$ 2,398
Ending balance	2,783	3,115
(Recovery of) provision for doubtful accounts	(16)	1,130
Written-off	(213)	(178)
Exchange rate effect	$ (103)	$ (235)

Intangible Assets, Net (Details) $ in Millions	1 Months Ended		6 Months Ended
	Jan. 31, 2022 USD ($)	Jan. 31, 2022 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Purchase land use right	$ 5.9	¥ 42,690,000
Land use-right with net book value			$ 2.5		$ 2.6
Amortization expenses			$ 0.3	$ 0.3
Land use right, description			The term of the land use right is 50 years from 2023 to 2073.

Intangible Assets, Net (Details) - Schedule of Intangible Assets with Definite Useful Lives Primarily Consisted of Land use Rights an Licensed Software - USD ($) $ in Thousands		Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Subtotal		$ 15,803	$ 10,144
Less: accumulated amortization		(3,566)	(3,433)
Intangible assets, net		12,237	6,711
Land use rights [Member]
Finite-Lived Intangible Assets [Line Items]
Subtotal	[1]	13,806	8,011
Licensed software [Member]
Finite-Lived Intangible Assets [Line Items]
Subtotal		$ 1,997	$ 2,133
[1] In January 2022, the Company signed an agreement with Ningde City government to purchase a land use right for approximately $5.9 million (RMB 42,690,000) and the prepayment was made to the local government accordingly. The Company obtained certificate of land-use right and the transaction was completed in June 2023. The prepaid balance was transferred from other non-current assets to intangible assets. The term of the land use right is 50 years from 2023 to 2073.

Intangible Assets, Net (Details) - Schedule of Future Amortization for the Intangible Assets $ in Thousands	Jun. 30, 2023 USD ($)
Schedule of Future Amortization for the Intangible Assets [Abstract]
2023	$ 637
2024	531
2025	424
2026	403
2027	358
Thereafter	9,884
Total	$ 12,237

Related Party Transactions (Details) - Dec. 10, 2007 ¥ in Millions, $ in Millions	USD ($)	CNY (¥)
Investment, Affiliated Issuer [Member]
Related Party Transactions (Details) [Line Items]
Principal amount	$ 1.4	¥ 9.6

Related Party Transactions (Details) - Schedule of Transactions with Related Parties - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Transportation services to Fujian Bafang [Member]
Related Party Transaction [Line Items]
Transactions with related parties		$ 18
Related Party [Member]
Related Party Transaction [Line Items]
Total		18
Transportation services from Fujian Bafang [Member]
Related Party Transaction [Line Items]
Transactions with related parties	472	431
Lease services from Fuzhou Tianyu [Member]
Related Party Transaction [Line Items]
Transactions with related parties	$ 109	$ 152

Related Party Transactions (Details) - Schedule of Balances with Related Parties - USD ($) $ in Thousands		Jun. 30, 2023	Dec. 31, 2022
Fuzhou Tianyu [Member]
Related Party Transaction [Line Items]
Total due from related parties		$ 41	$ 42
Total due to related parties		123	84
Related Party [Member]
Related Party Transaction [Line Items]
Total due from related parties		41	42
Total due to related parties		1,573	2,414
Fujian Bafang [Member]
Related Party Transaction [Line Items]
Total due to related parties	[1]	1,416	1,694
Fuzhou Tianyu Management [Member]
Related Party Transaction [Line Items]
Total due to related parties		34	36
Yongteng Liu [Member]
Related Party Transaction [Line Items]
Total due to related parties			$ 600
[1] 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.

Notes Payables (Details) ¥ in Millions, $ in Millions		1 Months Ended
	Mar. 20, 2023 USD ($)	Feb. 28, 2023 USD ($)	Mar. 20, 2023 CNY (¥)	Feb. 28, 2023 CNY (¥)
Notes Payables (Details) [Line Items]
Restricted cash deposits	$ 0.3		¥ 2.4
Real estate property valued		$ 8.0
Shanghai Pudong Development Bank Co Ltd [Member]
Notes Payables (Details) [Line Items]
Company payable due date	Sep. 30, 2023
Shanghai Pudong Development Bank Co Ltd [Member]
Notes Payables (Details) [Line Items]
Issued bank acceptance	$ 1.1		¥ 8.0
China Minsheng Bank Fuzhou Branch [Member]
Notes Payables (Details) [Line Items]
Company payable due date		Feb. 06, 2024
Note payable		$ 8.3		¥ 60.0
Land use rights [Member]
Notes Payables (Details) [Line Items]
Real estate property valued		$ 0.9

Notes Payables (Details) - Schedule of Notes Payables - USD ($) $ in Thousands		Jun. 30, 2023	Dec. 31, 2022
Notes Payables (Details) - Schedule of Notes Payables [Line Items]
Total		$ 9,411	$ 2,046
Bank acceptance notes payable issued by Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch [Member]
Notes Payables (Details) - Schedule of Notes Payables [Line Items]
Total	[1]	1,107	2,046
Commercial acceptance notes payable guaranteed by China Minsheng Bank Fuzhou Branch [Member]
Notes Payables (Details) - Schedule of Notes Payables [Line Items]
Total	[2]	$ 8,304
[1] On March 20, 2023, Shanghai Pudong Development Bank Co., Ltd. issued bank acceptance notes payable of approximately $1.1 million (RMB8.0 million) to the Company with due date on September 30, 2023. The Company was required to maintain restricted cash deposits of approximately $0.3 million (RMB2.4 million) in such bank, in order to ensure future credit availability. These notes were fully paid upon maturity and the restricted deposit was also released upon the note repayments. [2] In February 2023, the Company issued commercial acceptance notes payable of approximately $8.3 million (RMB60.0 million) and guaranteed by China Minsheng Bank Fuzhou Branch with a due date on February 6, 2024. The commercial acceptance notes were collateralized by the real estate property valued at approximately $8.0 million and the land use rights for the property located at Dapu village, Honglu street, Fuqing City, Fuzhou City, Fujian Province, PRC, valued at approximately $0.9 million, owned by the Company and were further guaranteed by Yongxu Liu, a shareholder, the CEO and Chairman of the Company, and his brother, Yongteng Liu.

Short-Term Bank Loans (Details) $ in Thousands																																																												6 Months Ended
	Jun. 21, 2023 USD ($)	Jun. 21, 2023 CNY (¥)	Jun. 19, 2023 USD ($)	Jun. 19, 2023 CNY (¥)	Jun. 15, 2023 USD ($)	Jun. 15, 2023 CNY (¥)	Jun. 05, 2023 USD ($)	Jun. 05, 2023 CNY (¥)	Mar. 15, 2023 USD ($)	Mar. 15, 2023 CNY (¥)	Jan. 09, 2023 USD ($)	Jan. 09, 2023 CNY (¥)	Dec. 21, 2022 USD ($)	Dec. 21, 2022 CNY (¥)	Dec. 16, 2022 USD ($)	Dec. 16, 2022 CNY (¥)	Dec. 15, 2022 USD ($)	Dec. 15, 2022 CNY (¥)	Jul. 18, 2022 USD ($)	Jul. 18, 2022 CNY (¥)	Jul. 14, 2022 USD ($)	Jul. 14, 2022 CNY (¥)	Jul. 07, 2022 USD ($)	Jul. 07, 2022 CNY (¥)	Jun. 23, 2022 USD ($)	Jun. 23, 2022 CNY (¥)	Jun. 15, 2022 USD ($)	Jun. 15, 2022 CNY (¥)	Jun. 13, 2022 USD ($)	Jun. 13, 2022 CNY (¥)	Jun. 07, 2022 USD ($)	Jun. 07, 2022 CNY (¥)	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 (¥)	Jan. 14, 2022 USD ($)	Jan. 14, 2022 CNY (¥)	Dec. 24, 2021 USD ($)	Dec. 24, 2021 CNY (¥)	Dec. 14, 2021 USD ($)	Dec. 14, 2021 CNY (¥)	Sep. 10, 2021 USD ($)	Aug. 12, 2021 USD ($)	Aug. 12, 2021 CNY (¥)	Jun. 28, 2021 USD ($)	Jun. 28, 2021 CNY (¥)	Mar. 12, 2021 USD ($)	Mar. 12, 2021 CNY (¥)	Mar. 10, 2021 USD ($)	Mar. 10, 2021 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2023 CNY (¥)	Jun. 30, 2022 USD ($)	Sep. 27, 2023 USD ($)	Sep. 26, 2023 USD ($)	Sep. 26, 2023 CNY (¥)	Sep. 12, 2023 USD ($)	Sep. 12, 2023 CNY (¥)	Jul. 07, 2023 USD ($)	Jul. 07, 2023 CNY (¥)	Jun. 30, 2023 CNY (¥)	Jun. 20, 2023 USD ($)	Jun. 20, 2023 CNY (¥)	Jun. 19, 2023 CNY (¥)	Jun. 15, 2023 CNY (¥)	Jun. 13, 2023 USD ($)	Jun. 13, 2023 CNY (¥)	Jun. 09, 2023 USD ($)	Jun. 09, 2023 CNY (¥)	Jun. 05, 2023 CNY (¥)	May 09, 2023 USD ($)	May 09, 2023 CNY (¥)	May 05, 2023 USD ($)	May 05, 2023 CNY (¥)	May 04, 2023 USD ($)	May 04, 2023 CNY (¥)	Apr. 24, 2023 USD ($)	Apr. 24, 2023 CNY (¥)	Apr. 17, 2023 USD ($)	Apr. 17, 2023 CNY (¥)	Apr. 15, 2023 USD ($)	Apr. 15, 2023 CNY (¥)	Apr. 07, 2023 USD ($)	Apr. 07, 2023 CNY (¥)	Mar. 21, 2023 USD ($)	Mar. 21, 2023 CNY (¥)	Feb. 20, 2023 USD ($)	Feb. 20, 2023 CNY (¥)	Feb. 17, 2023 USD ($)	Feb. 17, 2023 CNY (¥)	Feb. 07, 2023 USD ($)	Feb. 07, 2023 CNY (¥)	Feb. 03, 2023 USD ($)	Feb. 03, 2023 CNY (¥)	Jan. 17, 2023 USD ($)	Jan. 17, 2023 CNY (¥)	Jan. 11, 2023	Jan. 09, 2023 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 22, 2022 USD ($)	Dec. 22, 2022 CNY (¥)	Dec. 21, 2022 CNY (¥)	Dec. 19, 2022 USD ($)	Dec. 19, 2022 CNY (¥)	Dec. 16, 2022 CNY (¥)	Dec. 15, 2022 CNY (¥)	Nov. 09, 2022 USD ($)	Nov. 09, 2022 CNY (¥)	Oct. 21, 2022	Jun. 16, 2022 USD ($)	Jun. 16, 2022 CNY (¥)	Apr. 12, 2022 USD ($)	Apr. 12, 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 ($)	Jan. 28, 2022 CNY (¥)	Jan. 21, 2022 CNY (¥)	Jan. 19, 2022 CNY (¥)	Jan. 14, 2022 CNY (¥)	Dec. 24, 2021 CNY (¥)	Nov. 30, 2021 USD ($)	Nov. 30, 2021 CNY (¥)	Sep. 22, 2021 USD ($)	Sep. 22, 2021 CNY (¥)	Sep. 17, 2021 USD ($)	Sep. 17, 2021 CNY (¥)	Sep. 10, 2021 CNY (¥)	Sep. 07, 2021 USD ($)	Sep. 07, 2021 CNY (¥)	Aug. 26, 2021 USD ($)	Aug. 26, 2021 CNY (¥)	Aug. 19, 2021 USD ($)	Aug. 19, 2021 CNY (¥)	Aug. 11, 2021 USD ($)	Aug. 11, 2021 CNY (¥)	Aug. 10, 2021 USD ($)	Aug. 10, 2021 CNY (¥)	Jul. 21, 2021 USD ($)	Jul. 21, 2021 CNY (¥)	Jul. 14, 2021 USD ($)	Jul. 14, 2021 CNY (¥)	Jun. 28, 2021 CNY (¥)	Apr. 02, 2021 USD ($)	Apr. 02, 2021 CNY (¥)	Mar. 26, 2021 USD ($)	Mar. 26, 2021 CNY (¥)	Mar. 10, 2021 CNY (¥)	Mar. 09, 2021 USD ($)	Mar. 09, 2021 CNY (¥)	Apr. 15, 2020 USD ($)	Apr. 15, 2020 CNY (¥)	Apr. 08, 2020 USD ($)	Apr. 08, 2020 CNY (¥)
Short-Term Bank Loans (Details) [Line Items]
Short-term bank borrowings																																											$ 900																	$ 34,861																																																$ 47,655
Weighted average interest rate																																																												4.08%		4.64%								4.08%
Fixed interest rate											4.10%																																																																																																4.10%
Aggregate credit line																																																												$ 34,900	¥ 251,900,000
China Minsheng Bank Fuzhou Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Short-term loan facility amount																																																			$ 5,800																																																																																									$ 5,960	¥ 38,000,000			¥ 37,000,000
Fixed interest rate																			4.00%	4.00%	4.00%	4.00%	4.00%	4.00%																											4.35%																																																																																									4.35%	4.35%			4.35%
Real estate amount																																																			$ 8,400
Land use rights for property																																																			1,000
Loan amount																																																			$ 5,800																																																																																									$ 5,960	¥ 38,000,000			¥ 37,000,000
Repayment of long term loans																			$ 3,140	¥ 20,000,000	$ 2,820	¥ 18,000,000	$ 5,800	¥ 37,000,000
Additional loan																			$ 2,900	¥ 20,000,000	$ 2,600	¥ 18,000,000	5,300	37,000,000
Note payable amount																																																																																																$ 8,300	¥ 60,000,000	$ 10,800	¥ 75,000,000
Bank of China Fuzhou Jin’an Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Short-term loan facility amount																																																						$ 12,300																																																																																																									¥ 80,000,000
Additional loan																									$ 2,900	¥ 20,000,000			$ 4,300	¥ 30,000,000			$ 2,400	¥ 17,000,000
Fixed interest rate																																																						4.35%																	2.50%	2.50%					2.50%	2.50%				2.50%	2.50%									2.50%	2.50%																																																																		4.35%
Total facility																																																						$ 9,800
Financing exposure balance																																																						$ 61,300	¥ 400,000,000					$ 55,400	¥ 400,000,000
Annual revenue percentage																																																						25.00%	25.00%					25.00%	25.00%
Total loan facility available																																																						$ 7,700																																																																																																									¥ 50,000,000
Loan drawn																																																																							$ 4,200	¥ 30,000,000					$ 2,800	¥ 20,000,000				$ 2,400	¥ 17,000,000									$ 1,800	¥ 13,000,000																																																												$ 4,600	¥ 30,000,000	$ 3,100	¥ 20,000,000	$ 2,600	¥ 17,000,000
Amount obtained under credit line																																					$ 1,900	¥ 13,000,000
Repayment of loan																											$ 3,000	¥ 20,000,000			$ 4,600	¥ 30,000,000			$ 2,600	¥ 17,000,000
Repaid			$ 2,800																																																																						¥ 19,000,000		$ 1,600	¥ 11,000,000	$ 2,800	¥ 19,000,000		$ 100	¥ 1,000,000			$ 2,300	¥ 16,000,000	$ 100	¥ 1,000,000							$ 1,900	¥ 13,000,000
Total facility									$ 11,100	¥ 80,000,000
Real estate amount									$ 8,100
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 $55.4 million (RMB 400,000,000) 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.	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 $55.4 million (RMB 400,000,000) 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.
Loan amount outstanding																																																												$ 11,100	¥ 80,000,000
Bank of China Fuzhou Jin’an Branch [Member] | Minimum [Member]
Short-Term Bank Loans (Details) [Line Items]
Interest rate of loan																																																																																																																						4.00%
Bank of China Fuzhou Jin’an Branch [Member] | 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							$ 10,400																																$ 1,500								$ 9,200																																¥ 75,000,000																																												¥ 10,000,000					$ 800	¥ 5,000,000			$ 2,300	¥ 15,000,000				¥ 60,000,000
Real estate amount																																															1,800
Land use rights for property							800	¥ 6,000,000
Loan drawn			$ 2,100		$ 5,100																																																													$ 1,400	¥ 10,000,000						¥ 15,000,000	¥ 37,000,000																																			$ 1,400	¥ 10,000,000											$ 1,400	¥ 10,000,000		$ 700	¥ 5,000,000					$ 1,400	¥ 10,000,000
Amount obtained under credit line																																																												1,400	10,000,000
Repayment of loan																																									$ 2,300	¥ 15,000,000			$ 2,300	¥ 15,000,000
Interest rate of loan			4.00%		4.00%										4.30%		4.30%																												4.50%																					3.70%	3.70%						4.00%	4.00%																																								4.30%	4.30%						4.50%	4.50%		4.50%	4.50%					4.50%	4.50%					4.50%
Total facility																																															11,600	¥ 75,000,000
Loan amount outstanding																																																												9,000	¥ 65,000,000
Unpaid Loan																																																												9,300										¥ 60,000,000
Unpaid loan receivable																																																												$ 4,600										¥ 30,000,000																																																																											$ 1,600	¥ 10,000,000	$ 3,100	¥ 20,000,000
Repayment to the bank	$ 1,400	¥ 10,000,000	$ 3,600	¥ 25,000,000	$ 5,300	¥ 37,000,000									$ 2,200	¥ 15,000,000	$ 2,400	¥ 17,000,000
Description of repayment																																																												the Company repaid approximately $1.4 million (RMB10.0 million), $0.7 million (RMB5.0 million) and $1.4 million (RMB10.0 million) to the bank.	the Company repaid approximately $1.4 million (RMB10.0 million), $0.7 million (RMB5.0 million) and $1.4 million (RMB10.0 million) to the bank.
Xiamen International Bank Co., Ltd. Fuzhou Branch[Member]
Short-Term Bank Loans (Details) [Line Items]
Short-term bank borrowings																																																																																																																																																							$ 4,300	¥ 30,000,000																	$ 3,100	¥ 20,000,000
Fixed interest rate																																																				5.60%	5.60%																																			5.50%	5.50%																																																												5.60%	5.60%																	5.50%	5.50%
Loan drawn																																																																																								$ 2,800	¥ 20,000,000																																																												$ 4,300	¥ 30,000,000																	$ 2,900	¥ 20,000,000
Repayment to the bank																																																				$ 4,300	¥ 30,000,000
Repaid amount to bank																																																																																										$ 2,900	¥ 20,000,000
Xiamen International Bank Co., Ltd. Fuzhou Branch[Member] | Debt Instrument, Redemption, Period One [Member]
Short-Term Bank Loans (Details) [Line Items]
Loan amount outstanding																																																												$ 4,300	¥ 30,000,000
Xiamen International Bank Co., Ltd. Fuzhou Branch[Member] | Debt Instrument, Redemption, Period Two [Member]
Short-Term Bank Loans (Details) [Line Items]
Loan amount outstanding																																																												2,800	20,000,000
China Merchant Bank Fuzhou Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Short-term bank borrowings																																																																																																																							$ 1,400	¥ 10,000,000
Fixed interest rate																																																															4.00%																																																								5.00%	5.00%																																								5.50%	5.50%
Loan drawn																																																															$ 1,400
Repayment to the bank																							$ 1,400	¥ 10,000,000																									$ 750	¥ 5,000,000
Loan agreement																																																																																																																																																																$ 1,500	¥ 10,000,000
Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Short-term bank borrowings																																																																																																																																										$ 1,500	¥ 10,000,000			$ 1,500	¥ 10,000,000
Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch [Member] | Minimum [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]
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																																																																																																						$ 900	¥ 6,000,000																																																														$ 1,500	¥ 10,000,000
Fixed interest rate																																																																																																																																																																		3.35%	3.35%
Loan drawn																																																																																																																																																																		$ 900	¥ 6,000,000
Loan amount outstanding																																																												800	6,000,000
Industrial Bank Fuzhou Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Short-term bank borrowings																																																																																																																														$ 1,400	¥ 10,000,000																																					¥ 10,000,000
Fixed interest rate																																																										4.35%																																																										4.20%	4.20%									4.35%	4.35%																																					4.35%
Loan drawn																																																																																																																				$ 1,400	¥ 9,900,000
Amount obtained under credit line																																																												100
Loan amount outstanding																																																												1,400	9,900,000
Amount received																																					$ 100	¥ 1,000,000	$ 1,300	¥ 9,000,000																$ 200	¥ 1,000,000	$ 1,400	¥ 9,000,000
Fuqing Shengfeng Logistics Co., Ltd. [Member]
Short-Term Bank Loans (Details) [Line Items]
Repaid amount to bank																																																																				$ 800	¥ 6,000,000
Guangxi Beibu Gulf Bank Nanning Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Short-term bank borrowings																																																																																																								$ 700	¥ 5,000,000
Fixed interest rate																																																																																																								4.16%	4.16%
Short term loan receivable																																																												700	5,300,000
Interest expenses																																																												800		$ 1,100
Aggregate credit line																																																												$ 36,300	¥ 262,000,000
Yongxu,LIU[Member] | China Merchant Bank Fuzhou Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Land use rights for property																																															$ 900
Short-term loans real estate amount | ¥																																																																															¥ 12,300,000
Yongxu,LIU[Member] | Industrial Bank Fuzhou Huqian Sub Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Fixed interest rate																																									3.80%																																																																																													3.80%
Loan drawn																																									$ 900																																																																																													¥ 6,000,000
Yongxu,LIU[Member] | Industrial Bank Fuzhou Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Short-term bank borrowings																																																										$ 1,500
Real estate [Member} | China Merchant Bank Fuzhou Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Short-term loans real estate amount							$ 1,700
4.30% [Member] | China Merchant Bank Fuzhou Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Loan drawn																																																																																																																$ 3,600
Line of Credit [Member] | China Merchant Bank Fuzhou Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Loan drawn | ¥																																																																																																																	¥ 25,000,000
Interest rate of loan																																																																																																										4.05%						4.30%	4.30%
Fuzhou Tongpan Branch of China Everbright Bank Co., Ltd [Member]
Short-Term Bank Loans (Details) [Line Items]
Short-term bank borrowings											$ 800																																																																																																¥ 6,000,000
Loan proceeds											800	¥ 6,000,000
Fujian Shengfeng Logistics Co., Ltd.[Member] | China Merchant Bank Fuzhou Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Loan drawn			$ 1,800																																										$ 1,500																												¥ 13,000,000																																																															¥ 10,000,000
Interest rate of loan																																													4.50%																																																																																											4.50%
Repayment to the bank													$ 1,500	¥ 10,000,000
Fuqing Shengfeng Logistics Co., Ltd. [Member] | China Merchant Bank Fuzhou Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Loan drawn													$ 400																																$ 500																																																																		¥ 3,000,000																									¥ 3,000,000
Interest rate of loan			3.70%										4.30%																																4.50%																												3.70%																																						4.30%																									4.50%
Repayment to the bank			$ 400	¥ 3,000,000									$ 500	¥ 3,000,000
Fuqing Shengfeng Logistics Co., Ltd. [Member] | Industrial Bank Fuzhou Huqian Sub Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Fixed interest rate																																																																																																				3.70%	3.70%
Loan drawn																																																																																																				$ 800	¥ 6,000,000
China Merchant Bank Fuzhou Branch [Member] | China Merchant Bank Fuzhou Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Short-term bank borrowings																																																																$ 1,400	¥ 10,000,000
China Everbright Bank Co., Ltd Fuzhou Tongpan Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Short-term bank borrowings | ¥																																																																																																																																							¥ 6,000,000
Fixed interest rate																																											4.60%																																																																																												4.60%
Repayment to the bank											$ 900	¥ 6,000,000
Loan proceeds																																											$ 900	¥ 6,000,000
4.50%[Member] | China Merchant Bank Fuzhou Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Loan drawn																																									$ 2,200				$ 2,400																																																																																									¥ 15,000,000		¥ 17,000,000
4.30% [Member] | China Merchant Bank Fuzhou Branch [Member]
Short-Term Bank Loans (Details) [Line Items]
Loan drawn															$ 3,000		$ 2,300																																																																																																	¥ 21,000,000	¥ 16,000,000

Short-Term Bank Loans (Details) - Schedule of Short-Term Bank Loans from Commercial Banks - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Short term bank loans	$ 34,861	$ 47,655
Fuzhou Minhou Sugarcane Branch of China Minsheng Bank [Member]
Short-Term Debt [Line Items]
Short term bank loans		10,769
Bank of China Fuzhou Jin’an Branch [Member]
Short-Term Debt [Line Items]
Short term bank loans	11,071	11,487
China Merchant Bank Fuzhou Branch [Member]
Short-Term Debt [Line Items]
Short term bank loans	8,996	10,769
Fuzhou Branch of Xiamen International Bank Co., Ltd. [Member]
Short-Term Debt [Line Items]
Short term bank loans	6,920	7,179
Haixia Bank of Fujian Fuzhou Jin’an Branch [Member]
Short-Term Debt [Line Items]
Short term bank loans	1,384	1,436
Fujian Fuzhou Rural Commercial Bank Co., Ltd. Yuefeng Branch [Member]
Short-Term Debt [Line Items]
Short term bank loans	1,384	1,436
Shanghai Pudong Development Bank Co., Ltd. Fuzhou Branch [Member]
Short-Term Debt [Line Items]
Short term bank loans	1,384	1,436
Industrial Bank Fuzhou Huqian Branch [Member]
Short-Term Debt [Line Items]
Short term bank loans	830	861
Fuzhou Branch of Industrial Bank [Member]
Short-Term Debt [Line Items]
Short term bank loans	1,370	1,421
Fuzhou Tongpan Branch of China Everbright Bank Co., Ltd [Member]
Short-Term Debt [Line Items]
Short term bank loans	830	$ 861
Guangxi Beibu Gulf Bank Nanning Branch [Member]
Short-Term Debt [Line Items]
Short term bank loans	$ 692

Leases (Details) - Schedule of Associated Financial Statement - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets
Operating lease right-of-use assets, net	$ 21,130	$ 27,880
Liabilities
Operating lease liabilities, current	7,382	9,634
Operating lease liabilities, non-current	$ 13,401	$ 17,507
Weighted average remaining lease term (in years)	5 years 10 months 24 days	5 years 1 month 6 days
Weighted average discount rate (%)	5.82%	5.78%

Leases (Details) - Schedule of Operating Lease Activities - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Schedule of Operating Lease Activities [Abstract]
Operating lease right-of-use assets obtained in exchange for lease liabilities	$ 1,725	$ 3,396
Operating lease expense
Amortization of right-of-use assets	4,515	4,381
Interest of lease liabilities	694	859
Total	$ 5,209	$ 5,240

Leases (Details) - Schedule of Maturities of Lease Liabilities $ in Thousands	Jun. 30, 2023 USD ($)
Schedule of Maturities of Lease Liabilities [Abstract]
2023	$ 7,598
2024	5,314
2025	3,592
2026	1,841
2027	1,705
Thereafter	3,845
Total lease payments	23,895
Less: imputed interest	(3,112)
Total	$ 20,783

Taxes (Details) - USD ($) $ in Millions	6 Months Ended		36 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2023	Dec. 31, 2022
Taxes (Details) [Line Items]
Preferential tax rate	17.90%	13.10%
Effective income tax rate reconciliation, repatriation of foreign earnings, percent	25.00%
Unrecognized tax benefits that would impact effective tax rate (in Dollars)	$ 0.5	$ 0.2
Deferred tax assets, valuation allowance (in Dollars)
Operating loss carryforwards (in Dollars)	$ 6.6			$ 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	5.00%
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				15.00%
Beijing Tianyushengfeng E-commerce Technology Co., Ltd. [Member] | Forecast [Member]
Taxes (Details) [Line Items]
Preferential tax rate			15.00%
Shengfeng Supply Chain Management Co., Ltd. [Member]
Taxes (Details) [Line Items]
Preferential tax rate				15.00%

Taxes (Details) - Schedule of Income Before Income Taxes - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Schedule of Income Before Income Taxes [Abstract]
Non-PRC	$ (252)
PRC	8,124	2,826
Total	$ 7,872	$ 2,826

Taxes (Details) - Schedule of the Income Tax Provision - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Schedule of the Income Tax Provision [Abstract]
Current	$ 709	$ 484
Deferred	700	(113)
Total	$ 1,409	$ 371

Taxes (Details) - Schedule of Statutory Rates to the Company’s Effective Tax Rate		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022
Schedule of Statutory Rates to the Company’s Effective Tax Rate [Abstract]
PRC statutory income tax rate		25.00%	25.00%
Effect of preferential tax rates	[1]	(5.70%)	(6.90%)
Eligible additional deduction		(2.90%)	(5.50%)
Impact of different tax rates in other jurisdictions		0.80%
Non-taxable and exemptions		(0.50%)
Permanent differences	[2]	1.20%	0.50%
Effective income tax rate		17.90%	13.10%
[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.

Taxes (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) $ in Thousands		Jun. 30, 2023	Dec. 31, 2022
Schedule of Deferred Tax Assets and Liabilities [Abstract]
Net operating losses carryforward		$ 1,573	$ 2,300
Allowance for doubtful accounts		793	874
Deferred income	[1]	266	279
Intangible assets	[2]	137	134
Subtotal		2,769	3,587
Less: valuation allowance
Deferred tax assets		$ 2,769	$ 3,587
[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. [2] 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 Tax Payable Consisted - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Schedule of Tax Payable Consisted [Abstract]
Value-added tax payable	$ 2,487	$ 1,828
Income tax payable	568	185
Other taxes payable	147	194
Total	$ 3,202	$ 2,207

Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions			6 Months Ended	12 Months Ended
		Apr. 04, 2023	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 18, 2020
Shareholders' Equity (Details) [Line Items]
Gross proceeds offering (in Dollars)			$ 9.6
Equity Method Investment, Realized Gain (Loss) on Disposal (in Dollars)				$ 0.3
Capital contribution (in Dollars)					$ 3.4
After tax net income percentage			10.00%
Entity registered capital			50.00%
After tax profit			10.00%
Registered capital			50.00%
Paid in capital (in Dollars)			$ 79.6
Statutory reserve (in Dollars)				79.6
IPO [Member]
Shareholders' Equity (Details) [Line Items]
Gross proceeds offering (in Dollars)			$ 8.5
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
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)			$ 4.0	$ 4.0
Class A ordinary Shares [Member]
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
Price per shares (in Dollars per share)			$ 4.46
Ordinary shares			144,000
Common stock, shares outstanding	[1]		40,520,000	38,120,000
Common stock, shares issued	[1]		40,520,000	38,120,000
Class A ordinary Shares [Member] | IPO [Member]
Shareholders' Equity (Details) [Line Items]
Initial public offering		2,400,000
Price per shares (in Dollars per share)		$ 4
Class A ordinary Shares [Member] | Ordinary Shares [Member]
Shareholders' Equity (Details) [Line Items]
Common stock, shares authorized						400,000,000
Initial public offering	[2]		2,400,000
Common stock, shares outstanding			40,520,000	38,120,000
Common stock, shares issued			40,520,000	38,120,000
Class B ordinary Shares [Member]
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 outstanding	[1]		41,880,000	41,880,000
Common stock, shares issued	[1]		41,880,000	41,880,000
Class B ordinary Shares [Member] | Ordinary Shares [Member]
Shareholders' Equity (Details) [Line Items]
Common stock, shares authorized						100,000,000
Common stock, shares outstanding			41,880,000	41,880,000
Common stock, shares issued			41,880,000	41,880,000
Ordinary Shares [Member] | Class B ordinary Shares [Member]
Shareholders' Equity (Details) [Line Items]
Common stock, par or stated value per share (in Dollars per share)						$ 0.0001
[1] Shares and per share data are presented on a retroactive basis to reflect the reorganization described herein. [2] Shares and per share data are presented on a retroactive basis to reflect the reorganization described herein.

Commitments and Contingencies (Details) - 6 months ended Jun. 30, 2023 ¥ in Millions, $ in Millions	USD ($)	CNY (¥)
Commitments and Contingencies [Abstract]
Minimum lease payments	$ 2.7
Restricted cash	$ 1.0	¥ 7.1

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