ATIF Holdings Signs Definitive Agreement with Armstrong Logistic Inc., a Leading Freight Forwarding and Logistics Company in the U.S.

Rhea-AI Summary

ATIF Holdings Limited (Nasdaq: ATIF) announced a definitive agreement to provide IPO advisory services to Armstrong Logistic Inc., a specialized logistics provider. ATIF will receive equity in Armstrong and lead the IPO process through its staff and third-party engagements. Armstrong has shown significant growth, achieving a 956.5% increase in revenue from FY 2020 to FY 2021. The global 3PL market is projected to grow significantly, reaching $2,275.6 billion by 2030, which will support Armstrong's growth. This partnership aims to strengthen Armstrong's market position and expand its operations.

Positive

• Armstrong Logistic Inc's revenue increased 956.5% from FY 2020 to FY 2021.
• ATIF's involvement in the IPO process could enhance Armstrong's market presence and provide growth opportunities.

Negative

• None.

IRVINE, Calif., June 6, 2022 /PRNewswire/ --ATIF Holdings Limited (Nasdaq: ATIF, the "Company," "ATIF" or "We"), a holding company providing business and financial consulting services in Asia and North America, is pleased to announce that it has signed a definitive agreement to provide IPO advisory services to Armstrong Logistic Inc. ("Armstrong Logistic Inc"), a specialized provider of warehouse distribution, 3PL fulfillment, and multi-channel fulfillment services. 

Under the terms of the agreement, the Company will receive a certain number of equity stake in Armstrong Logistic Inc and lead the IPO process by utilizing internal staff and engaging third parties in auditing, valuation, stock exchange consulting, investor relations, and other IPO services.

About Armstrong Logistic Inc:

• Leading international intelligent warehouse logistics service provider, including warehouse distribution, 3PL fulfillment, and multi-channel fulfillment services that serve the Port of Los Angeles, San Diego, LAX, and all major access routes to and from Southern California
• Multi–channel capabilities Logistics and warehousing across three facilities throughout the United States (City of Industry, CA, Houston, TX, Florence, NJ), with 1,500,000 sq ft of space with plans for further expansion
• Maintains its own logistics company, customs clearance company, and freight trucking company, providing customers a one-stop-shop solution
• Realized substantial international growth in recent years, fueled by an increased presence in strategic markets together with international partnerships, and a strong focus on innovation and state-of-the-art warehousing capabilities
• Blue chip customer base, including Samyang America, Inc. and Pilot Automotive Inc.
• Respected partners of the United States Postal Service, UPS, FedEx, DHL Express, Estes Express Lines, and other leading shipping companies
• Joined the esteemed Top 3PL Provider list in 2020, compiled by Multichannel Merchant, and is a Fulfillment By Amazon (FBA) partner
• 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

Why it matters:

• Armstrong Logistic Inc has delivered strong financial growth, unaudited revenue increased 956.5% from FY 2020 to FY 2021
• 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
• 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.
• 3PL enables enterprises to gain access to established resource networks and industry expertise, benefitting from optimal cargo turnover, distribution efficiency, superior inventory management, reduced inventory and overall cost economies

Jun Liu, President, Chairman of the Board, and CEO of ATIF, stated, "We are excited to have been engaged by Armstrong Logistic Inc in their pursuit of a public listing that will be a major catalyst for their continued growth. Armstrong Logistic Inc has build an impressive distribution network that spans across the United States, and is a reliable partner across the supply chain. Armstrong Logistic Inc takes a sophisticated approach towards optimizing the entire supply chain management spectrum, including warehouse distribution, 3PL fulfillment, and multi-channel fulfillment, to the benefit of its customers and partners. A public listing will provide greater opportunities in expanding its reach, bolstering its employee base, and enhancing their capabilities to meet the challenges faced in the global supply chain."

Jacky Chen, CEO of Armstrong Logistic Inc, commented, "We are happy to take this important step in pursuing a public listing of our common stock. Through primarily organic growth, we've been able to expand and strengthen our core capabilities, which has allowed us to serve a more diverse set of customers and end markets. Our vision is to be a global leader of supply chain solutions, while bringing a real value proposition to our customers. We look forward to having Mr. Liu and the team at ATIF help Armstrong Logistic Inc navigate the complex process of becoming a public company."

About ATIF Holdings Limited

ATIF Holdings Limited ("ATIF") is a holding group with business consulting, asset management, and investment businesses, with offices in Los Angeles, California, Hong Kong, and Shenzhen, China. ATIF mainly provides IPO Advisory Services to small and medium-sized enterprises in Asia and North America. ATIF has advised several enterprises in China in their plans to become publicly listed in the United States. ATIF was awarded the "Top 10 Best Listed Companies 2019" from the "Golden Bauhinia Award," the highest award in Hong Kong's financial and securities industry. For more information, please visit https://ir.atifchina.com/.

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Forward-Looking Statements

Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantee of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: future financial and operating results, including revenues, income, expenditures, cash balances and other financial items; ability to manage growth and expansion; current and future economic and political conditions; ability to compete in an industry with low barriers to entry; ability to obtain additional financing in the future to fund capital expenditures; ability to attract new clients, complete projects for clients, and further enhance brand recognition; ability to hire and retain qualified management personnel and key employees; trends and competition in the financial consulting services industry; a pandemic or epidemic; the occurrence of any event, change or other circumstances that could affect the Company's ability to continue successful development and launch of its NFT collection; the possibility that the Company may not succeed in developing its NFT platform and business due to, among other things, changes in the business environment, competition, changes in governmental regulation, or other economic and policy factors; the ability of the Company to continue compliance with the development of applicable regulatory regulations in connection with blockchain, digital assets and the NFT industry; the possibility that the Company's ongoing NFT services may be adversely affected by other economic, business, and/or competitive factors;  and other factors listed in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions you that actual results may differ materially from the anticipated results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made. These forward-looking statements are made as of the date of this news release.

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SOURCE ATIF Holdings Limited

FAQ

What did ATIF announce on June 6, 2022?

On June 6, 2022, ATIF announced it signed a definitive agreement to provide IPO advisory services to Armstrong Logistic Inc.

What is the significance of the agreement between ATIF and Armstrong Logistic Inc?

The agreement allows ATIF to lead Armstrong's IPO process while obtaining an equity stake, potentially enhancing both companies' market positions.

How much did Armstrong Logistic Inc's revenue grow?

Armstrong Logistic Inc reported a revenue increase of 956.5% from FY 2020 to FY 2021.

What is the future market outlook for the 3PL industry according to the press release?

The global 3PL market is expected to reach $2,275.6 billion at a CAGR of 8.9% by 2030.

How does ATIF plan to support Armstrong Logistic Inc?

ATIF plans to support Armstrong by utilizing internal staff and third parties for auditing, valuation, and investor relations during the IPO process.