Addentax Group Corp. (“Addentax” or the “Company”) (NASDAQ:ATXG), an integrated service provider focusing on garment manufacturing, logistics services, property management and subleasing, and epidemic prevention supplies, today announced that its wholly owned subsidiary in China Shenzhen Xin Kuai Jie Transportation Co., Ltd (“Shenzhen Xin”) has entered into a logistics service agreement (the “Agreement”) with SF Express Co., Ltd (“SF Express”), the largest integrated logistics service provider in China and the fourth largest in the world, and a subsidiary of SF Holding Co., Ltd (SZSE: 002352). SF Express will be receiving operational logistics services from Addentax across several vital routes in China, including Shanghai – Dongguan, Shenzhen – Ningbo, Shenzhen – Nanning, Haikou – Sanya, Foshan – Liaocheng, Sanya – Qingyuan, among others. The strategic alliance with a leading enterprise such as SF Express further underlines the strength of the Company’s service portfolio and is expected to amplify the company’s reputation and industry credibility.
Pursuant to the Agreement, the two parties will collaboratively undertake the transportation tasks required for SF Express’s logistics services. Addentax will supply and manage transport vehicles and drivers, ensuring seamless operational execution of SF Express’s logistic needs. SF Express will undertake periodic supervision and inspection of partnered vehicles and drivers, evaluate the road transport services provided by Shenzhen Xin, conduct safety education initiatives, and partake in driver co-management. Addentax’s logistics division currently provides delivery and courier services in 79 cities spanning seven provinces and two municipalities in China. By leveraging a mix of company-owned motor vehicles, dedicated drivers, and contractor resources, Addentax has been able to optimize efficiency, sustain operational adaptability, and concurrently minimize capital expenditures and overall costs.
Mr. Zhida Hong, the Chairman and Chief Executive Officer of Addentax, stated, “We are thrilled to announce this cooperation. This partnership with SF Express is a milestone event, further asserting our leading position in the delivery industry throughout China, particularly in these pivotal and high-traffic routes. This collaborative venture with SF Express is set to drive our profitability to new peaks, while concurrently bolstering the quality of our delivery services. With our budding collaboration with SF Express, and the potential for partnerships with other market frontrunners in China, we expect to realize substantial returns in the coming years. Our unwavering commitment is to continually enhance our service offerings and maximize value for our shareholders.”
