Aug 18, 2022
IRVINE, Calif., Aug. 15, 2022 -- ATIF Holdings Limited (Nasdaq: ATIF, the "Company," "ATIF" or "We") is pleased to announce that the Company's IPO advisory services client and investment holding company Armstrong Logistic Inc. ("Armlogi"), a leading freight forwarding and logistics company in U.S., has recently seen strong growth in performance. Under the terms of the investment agreement between Armlogi and the Company, ATIF holds a 12.0% equity stake in Armlogi.
Armlogi is leading international intelligent warehouse logistics service provider, including warehouse distribution, 3PL fulfillment, and multi-channel fulfillment services, self-employed logistics company, customs clearance company and freight car company serving the Port of Los Angeles, San Diego, LAX, and all major access routes to and from Southern California. Armlogi's certified logistics and warehousing is located in City of Industry, CA; Houston, TX; and Florence, NJ, with 1,500,000 sq ft of space that is full-service EDI (Electronic Data Interchange) Compliant. Armlogi's Multi-Channel Fulfillment (MCF) service integrates with Amazon, Ebay, FedEx, Jet, Groupon, Shopify, Walmart, Wayfair, Woo Commerce, and other leading platforms, supporting 96% online e-commerce platform fulfillment.
Warehousing and logistics companies have had to adapt and evolve to changing market trends and the growing need for accelerated deliveries. In the face of the impact of inflation on the freight forwarding and logistics industry this year, Armlogi has developed flexible operational strategies. Through an assessment of its own inventory levels, warehousing capacity, utilization rates and transportation capabilities, Armlogi adopted strategies such as cutting unnecessary costs and introducing new growth opportunities, and effectively delivered very strong performance.
A growing number of enterprises are showing higher reliance towards outsourcing various logistics functions including transportation, warehousing, and distribution, thus fueling growth in the 3PL market. According to data from Statista, in the past 10 years, the 3PL market revenue has doubled over the last 10 years, increasing from $127.5 billion to $260.2 billion from 2010 to 2021, growing at a CAGR of 2.8%. According to MDC Research, the global 3PL market is expected to reach $2,275.6 billion at a CAGR of 8.9% by 2030.
Jun Liu, President, Chairman of the Board, and CEO of ATIF, commented, "We appreciate the innovations and rapid shifts of Armlogi's operations and are very pleased with its strong financial performance. As far as we understand it, Armlogi's revenues for the first quarter of 2022 alone exceeded 50% of total revenues in 2021 and revenues for the full year 2022 are expected to jump three to four times year over year! We expect Armlogi to continue its strong impetus and to deliver high returns for us and our shareholders in its future IPO."