U.S. IPO Preview | WODO.US Races to Nasdaq: Integrated Logistics Accounts for Nearly 96%, Yet Revenue Drops 17.9%

As cross-border e-commerce continues to expand overseas, logistics service providers are also searching for new growth opportunities.

Recently, cross-border logistics service provider Wodetong (WODO.US) submitted its latest F-1/A filing to the SEC, planning to list on the Nasdaq Capital Market. The company intends to issue 6 million shares, with an expected price range of $5 to $6 per share. Based on the adjusted mid-point of this range, the amount to be raised will be 340% higher than previously anticipated, bringing the company's valuation to $190 million.

As a service provider focused on Chinese cross-border logistics, Wodetong mainly integrates resources across air and sea transportation, customs clearance, warehousing, and overseas last-mile delivery, offering clients cross-border logistics solutions. Compared to traditional single-node freight forwarders, the company is shifting towards a “one-stop” logistics service model covering the entire transportation process.

This transformation is already reflected in its revenue structure. In fiscal year 2026, comprehensive logistics solutions revenue reached 365 million RMB, accounting for 95.9% of total revenue, while modular freight forwarding revenue was only 15.75 million RMB, dropping to 4.1% of the total. At the same time, the company's total revenue fell from 464 million RMB in fiscal year 2025 to 381 million RMB, a year-on-year decrease of 17.9%, with net profit attributable to Wodetong’s shareholders also declining from 8.93 million RMB to 8.6 million RMB.

What's even more noteworthy is that as revenue declined, operating cash flow turned from a net inflow of 6.14 million RMB in fiscal year 2025 to a net outflow of approximately 38.2 million RMB in fiscal year 2026, while the top three customers contributed 95.6% of total revenue.

For a cross-border logistics company preparing to go public, Wodetong now needs to answer not only whether the cross-border logistics market still has growth potential, but also how to truly convert IPO financing into new growth momentum under the pressures of declining revenue, a highly concentrated customer base, and volatile cash flows.

From “selling capacity” to “selling solutions”: can transformation bring growth?

According to Zhitong Finance APP, getting a cross-border product from China to overseas markets usually involves numerous stages—domestic collection, warehousing, customs declaration, international transport, destination clearance, transshipment, and last-mile delivery. Traditional freight forwarders tend to focus on one or several of these links, while Wodetong seeks to integrate them all, providing customers with an end-to-end comprehensive logistics service.

Currently, the company mainly provides two types of services: modular freight forwarding and comprehensive logistics solutions, with the latter being the fastest-growing segment. Modular freight forwarding allows clients to select individual or combined services—such as sea, air, customs clearance, warehousing, and delivery—based on their needs. Comprehensive logistics solutions emphasize end-to-end service along preset routes, integrating multiple logistics processes and managing coordination among different suppliers.

Looking at the changes in revenue composition, in fiscal year 2025, comprehensive logistics solutions generated 432 million RMB in revenue, making up 93% of total revenue. By fiscal year 2026, while revenue from this segment dropped to 365 million RMB, its share of total revenue actually increased further to 95.9%.

Specifically, small-parcel comprehensive logistics revenue was about 216 million RMB, making up 56.7% of total revenue; global customs clearance and delivery revenue was around 149 million RMB, accounting for 39.2%. At the same time, modular freight forwarding revenue dropped from 32.43 million RMB to 15.75 million RMB, a 51.4% year-on-year decrease.

However, “one-stop” does not equate to high profitability. In fiscal year 2026, the gross margin of Wodetong's comprehensive logistics solutions business increased from 5.6% in 2025 to 6.2%; within this, the gross margin for small-parcel comprehensive logistics improved from 4.9% to 6.0%, mainly driven by higher unit prices and cost controls. However, the gross margin for global customs clearance and delivery fell from 6.6% to 6.4%. As a result, the overall company gross margin was only 6.2%, with gross profit at 23.69 million RMB, a 20% year-on-year decline.

In other words, Wodetong still operates in a typical low-margin logistics segment. The company can improve costs by optimizing routes, prepaying some suppliers for better rates, and enhancing partnerships, but ultimate profit margins remain challenged by transportation costs, customer bargaining power, and industry competition.

According to industry data cited in the prospectus, by the end of 2023 there were already over 150,000 cross-border logistics companies in China, making the sector highly fragmented. For end-to-end cross-border logistics providers, customer relationships, global networks, industry expertise, service quality, and necessary certifications act as barriers to entry. Yet at the same time, large logistics companies such as DHL, FedEx, UPS, SF Express, JD.com, Cainiao, and ZTO Express also possess strong comprehensive service capabilities.

Therefore, the real challenge Wodetong faces is whether it can build a sufficiently stable customer base and supply chain advantage in this highly fragmented and competitive marketplace, rather than merely incorporating more logistics segments into a single service package.

Double decline in revenue and profits, negative cash flow—can the IPO open up new prospects?

If the adjustment in business structure reflects Wodetong’s strategic direction, then the fiscal year 2026 financial data exposes the real operating pressures the company currently faces.

According to the prospectus, Wodetong’s fiscal year 2026 revenue was 381 million RMB, a 17.9% year-on-year decrease; gross profit was 23.69 million RMB, down 20% year-on-year; net profit was 7.47 million RMB, a 6.7% decrease; net profit attributable to shareholders was 8.6 million RMB, down 3.7% year-on-year. Although the company remains profitable, both revenue and gross profit have declined significantly.

Among these, small-parcel comprehensive logistics revenue dropped by 14%, primarily because parcel volume declined by 19.6%, partly offset by a 9.4% increase in average price per parcel. Global customs clearance and delivery revenue fell by 17.2%, mainly due to a 17.7% drop in average unit price.

Behind the small-parcel segment, it is largely a case of “volume down, price up.” The company explains that cross-border e-commerce order demands have normalized and tariff policy changes have impacted volumes, so it has increased prices to cover higher operating costs.

The global customs clearance and delivery business is more a story of “prices down, volume stable.” The prospectus notes that intensified market competition and price pressure from the bid cycle forced the company to optimize routes and pricing to maintain market share with major customers.

More notably, the company directly warns in the prospectus that revenue may continue to decline over the next 12 months. On one hand, U.S. tariff policies are uncertain; on the other hand, from May 2, 2025, the U.S. will cancel the “de minimis exemption” for low-value parcels from China and Hong Kong, potentially increasing customs clearance complexity and impacting volumes of relevant cross-border e-commerce parcels. The company expects customs clearance volumes for major e-commerce platform customers may further decrease as a result.

For Wodetong, whose business relies on cross-border e-commerce logistics, this is not simply a cost issue but could directly affect shipment volumes.

At the same time, the company’s cash flow performance is even more concerning than its profit figures. According to Zhitong Finance APP, Wodetong had a net operating cash outflow of about 38.2 million RMB in fiscal year 2026, compared to a net inflow of 6.14 million RMB in fiscal year 2025. The company explained that this was mainly due to increased prepayments to certain suppliers to secure capacity and better prices, as well as a reduction of about 24 million RMB in accounts payable.

Additionally, in fiscal year 2026, prepayments to suppliers increased by around 22.4 million RMB, which was also a reason for the negative operating cash flow. At the same time, the company obtained 60 million RMB in short-term bank borrowings, repaid 20 million RMB in bank loans, and had a certain level of short-term financing.

Thus, for Wodetong, this IPO is not merely an exercise in boosting brand recognition, but serves a real need to supplement working capital and support business expansion.

Based on the mid-point of the offering price range, the company expects to raise approximately $33 million. According to the prospectus, the funds raised will be mainly used for general corporate purposes and working capital, IT services and data processing capacity building, overseas entities and office construction, as well as expanding new businesses that complement existing logistics activities. The company plans to further expand into markets such as Asia to the U.S., Europe, and South America, continuing to strengthen overseas logistics networks and IT system development.

However, beyond the use of funds, customer concentration may be an even more pressing issue for Wodetong after its public offering. In fiscal year 2026, the top three customers contributed 95.6% of revenue, with the largest customer accounting for 48.1%, the second-largest 39.2%, and the third 8.3%. In other words, the top two customers alone contribute nearly 90% of total revenue.

Such a customer structure can help a company quickly scale, but it also means a high degree of dependency. Should its core customers switch suppliers, reduce cross-border business, or demand further price reductions for logistics, the company’s revenue and profit could be significantly impacted. For a company with a gross margin of just 6.2%, price changes from major clients are especially material for final profit outcomes.

Overall, Wodetong’s IPO story is backed by a clear industry backdrop and a well-defined business transformation direction. As Chinese enterprises and cross-border e-commerce continue to expand overseas, demand remains for integrated one-stop logistics services covering transport, customs clearance, and last-mile delivery, and the company’s shift toward comprehensive solutions aligns with industry trends.

The main focus for the company post-listing may not be whether revenue can quickly rebound, but whether it can leverage IPO financing to expand its customer base and overseas network, reduce dependence on a small number of clients, and further improve the gross margin of its comprehensive logistics business.

If these improvements materialize progressively, the company’s earlier business transformation will find support in the financials; otherwise, if declining shipment volumes, price competition, and client concentration persist, relying solely on cross-border logistics industry growth for valuation may still face considerable challenges.