(Yicai) March 5 -- Shares in Guangzhou Jiacheng International Logistics surged as much as 9.7 percent today, before tumbling as investors cashed in, after the Chinese logistics firm said that it will provide warehousing and logistics services to a big cross-border e-commerce platform.

Jiacheng’s share price [SHA: 603535] closed down 1.4 percent at CNY15.09 (USD2.10). Earlier in the day it hit CNY16.80.

Jiacheng will provide a warehousing and logistics center with an area of around 70,000 square meters in a city in southern China to a well-known e-retailer over the next two years, the company said yesterday.

The deal is expected to be worth CNY150 million (USD20.84 million) a year, accounting for more than 10 percent of Jiacheng’s revenue in 2022, the Guangzhou-based company said.

The hub will handle a daily throughput of between 700,000 and one million orders, and a fleet of 200 delivery vans. The products are mainly fast fashion and make up destined for the European and US markets by air freight.

The client was not named for confidentiality reasons but Jiacheng said it is not the first time it has worked for this customer. In the company’s 2022 financial report, it named Shein, Alibaba Group Holdings and Lazada as some of its main clients.

Jiacheng plans to extend its services from warehousing to air cargo and customs clearance, in order to provide a more complete range of services to its e-commerce clients, it added.

Editor: Kim Taylor