v3.26.1
Prepayments and Other Assets, Net (Tables)
 12 Months Ended
Dec. 31, 2025
Prepayments and Other Assets, Net [Abstract]  
Schedule of Prepayments and Other Assets, Net

The prepayments and other assets, net consisted of the following:

 

   As of
December 31,
2025		   As of
December 31,
2024		 
Deposits (a)  $12,590   $14,510 
Prepayments for goods and services   4,362    3,390 
VAT recoverable (b)   6,935    5,600 
Prepayments and other receivables for property and equipment (c)   4,782    5,232 
Loan receivable (d)   17,371    9,738 
Disposal consideration (d)   
-
    696 
Advances to employees   69    81 
Others   581    696 
Prepayments and other assets   46,690    39,943 
Less: Allowance for credit losses for prepayments and other assets   (517)   (573)
Prepayments and other assets, net   46,173    39,370 
Less: Prepayments and other current assets, net   (22,189)   (29,684)
Other non-current assets  $23,984   $9,686 

 

(a) Deposits represent the refundable deposits to the lessors for the leased warehouses and office space.
   
(b) VAT recoverable represents the balances that the Company can utilize to deduct its value-added tax liabilities within the next 12 months.
   
(c) Prepayments and other receivables for property and equipment represent mainly prepayments and other receivables for constructions of logistic stations.
(d)

(i) On June 19, 2024, Shengfeng Supply Chain Management Co., Ltd. completed the transaction to sell 49% equity interest of Fujian Pingtan Tianyu Shengfeng Technology Co., Ltd. (“Pingtan SF”) and Pingtan SF’s subsidiary (Fujian Shengfeng Smart Technology Co., Ltd. (“SF Smart”)) to a third party for a consideration of approximately $7.0 million (RMB49.0 million). Shengfeng Supply Chain Management Co., Ltd. received approximately $6.3 million (RMB44.0 million) on December 31, 2024.

 

In addition, according to the agreement, Pingtan SF and Pingtan SF’s subsidiary (SF Smart) shall repay borrowing of approximately $7.0 million (RMB49.0 million) to the Company before July 30, 2024. the Company have received repayment of approximately $2.8 million (RMB20.0 million) before July 25, 2025.

 

On July 25, 2025, Shengfeng Supply Chain Management Co., Ltd. and the third party signed an annulment agreement, pursuant to which, the above equity transaction shall be annulled and Shengfeng Supply Chain Management Co., Ltd. agreed to loan approximately $7.0 million (RMB49.0 million) to SF Smart. As a result, Shengfeng Supply Chain Management Co., Ltd. shall refund above-mentioned consideration to this third party and the third party shall transfer the 49% equity interest of Pingtan SF back to Shengfeng Supply Chain Management Co., Ltd. As of August 15, 2025, Shengfeng Supply Chain Management Co., Ltd. had refunded above-mentioned consideration of approximately $6.3 million (RMB44.0 million) to this third party and loaned approximately $2.8 million (RMB20.0 million) to SF Smart. The third party has transferred 49% equity interest of Pingtan SF back to Shengfeng Supply Chain Management Co., Ltd.

 

(ii) On June 11, 2024, for the purpose of acquiring a land use right to expand the Company’s logistic business, the Company signed Memorandum of Understanding of Share Purchase Agreement (“2024 MOU”) with two shareholders of Hubei Xingqidian Supply Chain Management Co., Ltd. (“Xingqidian”, formerly named Hubei Tongzhou Information Harbor Co., Ltd.) to acquire 100% equity interest of Xingqidian, which owns land use right and constructed certain office and warehouse on such land use right. As of December 31, 2025, the Company made a loan of approximately $17.3 million (RMB121.5 million) to Xingqidian to secure the transaction and provide working capital for its further development. The loan with interest at an annual rate of 2.6%, and payable quarterly starting August 1, 2025. As of the date of this report, the share purchase transaction is not completed yet.
Schedule of Allowance for Credit Losses for Prepayments and Other Assets

Movement of allowance for credit losses for prepayments and other assets

 

   Years Ended December 31, 
   2025   2024   2023 
Beginning balance  $573   $405   $454 
Provisions for (recovery of) credit losses for prepayments and other assets   100    176    (42)
Written-off   (168)   
-
    
-
 
Foreign currency translation adjustments   12    (8)   (7)
Ending balance  $517   $573   $405