SHENZHEN, China, Oct. 29, 2020 /PRNewswire/ -- TD Holdings, Inc
(NASDAQ: GLG) announced that it will formally acquire Shenzhen
Qianhai Baiyu Supply Chain Co., Ltd. (hereinafter referred to as
"Baiyu") on October 26, 2020 and
signed an acquisition agreement. According to the details of the
acquisition agreement, the acquisition amount is 95.7 million USD. According to performance
benchmarks and valuation adjustment mechanism that is agreed by
both parties on the financial performance of 2020 and 2021, the
payment of the acquisition will be completed in two years.
The target company Baiyu Supply Chain was established in 2016
and is an integrated service provider specializing in commodity
supply chain. Since its establishment, Baiyu has been adhering to
the concept of "100-year foundation starts with building
reputation" and the principle of "customers first". With a perfect
reputation of zero default rate and tens of billions in scale,
Baiyu has become the fastest growing innovative enterprise in
China's commodity supply chain
industry. Baiyu's supply chain service covers full range of
commodities: non-ferrous metals, ferrous metals, coal,
metallurgical raw materials, soybean oils, oils, rubber, wood and
many other varieties. At the same time, it has significant supply
chain infrastructure including processing, logistics, warehousing,
and terminals. Utilizing the company's customer base, industry
experience, and expertise in the commodity field, Baiyu is one-stop
commodity supply chain service and digital intelligence supply
chain platform integrating upstream and downstream enterprises,
warehouses, logistics, information, and futures trading. Baiyu has
high-quality customer base and has established solid business
relationships serving various well-known domestic and international
companies including Vale, BHP, Glencore, Jiangxi Copper, Zijin
Mining, Aluminum Corporation of China, Jinchuan
Copper, Yunnan Tin, CNOOC, Hainan Rubber, .
Baiyu is audited by Audit Alliance LLP, a Singapore based accounting firm, and its
operating income and net profit in 2019 were respectively
21.17 million USD and 5.9 million USD; according to the auditor review,
the realized operating income and net profit from January to June
in 2020 were 33.11 million USD and
6.97 million USD respectively. The
revenue increase rate of 2018 to 2019 was 707.38%, so the company
expects to achieve revenue and profit at a growth rate of 30% to
50% in the next five years.
Ms. Ouyang Renmei, CEO of TD Holdings, Inc, says that the
acquisition of Baiyu has laid a solid foundation for TD Holdings,
Inc to enter the commodity supply chain field. Our company will
strengthen the upgrade of supply chain platform by introducing
systematic quantitative risk control system, which will be based on
Baiyu's massive historical market data and complex data analysis
models. The platform will establish a quantitative risk management
system with ETL as the core, and then optimize trading portfolios
by incorporating a combination of various factors and strategies in
order to effectively control risks and sustain business
development. As a part of the company's growth plan, we will
consider opening branches and business offices in Shanghai, Tianjin, Wuhan, Chengdu, Ningbo, Kunming, Xi'an, Foshan, Guangzhou, Hong Kong
China and other oversea countries like Singapore, Malaysia, Dubai, UK, Russia to cover international ground.
Ms. Ouyang Renmei says that the completion of the acquisition of
Baiyu supply chain has greatly improved the outlook of TD Holdings,
Inc. and is excited to enter a new industry space. TD Holdings,
Inc. will continue to acquire and incorporate companies and teams
specialized in e-commerce platforms, block-chain technology, smart
device manufacturing, commodity exchanges, third-party computing
power payment systems, to create an ecosystem that integrates
trading, payment and settlement, warehousing and logistics, supply
chain financing, and market intelligence of commodities, and become
an innovation leader for digital supply chain service provider for
commodities.
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SOURCE TD Holdings, Inc.