TD Holdings, Inc. Enters into Letter of Intent to Launch RMB300 Million Special Fund to Accelerate Development of Digital Cloud Warehouse
TD Holdings, Inc. (Nasdaq: GLG) announced a non-binding letter of intent with Shenzhen Meifu Capital Management Co., Ltd. to establish a RMB300 million special fund. This fund aims to develop a digital cloud warehouse using IoT and blockchain technology to enhance data accuracy in commodities management. The joint venture will see TD Holdings and its subsidiary contribute 20% of the registered capital, while SMCM will contribute 80%. This initiative is part of the company's growth strategy to improve operational efficiency and reduce transaction costs.
- Establishment of a RMB300 million special fund to enhance operational efficiency.
- Use of IoT and blockchain technology for improved data accuracy in commodities management.
- Non-binding letter of intent may present uncertainties regarding project execution.
- Potential reliance on external funding from SMCM may pose risks for capital allocation.
SHENZHEN, China, Dec. 1, 2021 /PRNewswire/ -- TD Holdings, Inc. (Nasdaq: GLG) (the "Company"), a commodities trading service provider in China, today announced that the Company and its wholly owned subsidiary, Shenzhen Baiyu Jucheng Data Technology Co., Ltd. ("BJDT"), have entered into a non-binding letter of intent (the "LOI") with Shenzhen Meifu Capital Management Co., Ltd. ("SMCM"), a private equity investment management institution and a pioneer in guiding government investment funds in South China, to launch a RMB300 million special fund (the "Fund") to accelerate development of a digital cloud warehouse (the "Project").
The Project is specifically used to build the Company's digital cloud warehouse platform, which utilizes Internet of Things and blockchain technology to record and track the data of its commodities warehouse, including inventory, logistics, transaction, and financing to ensure that the data is accurate and valid and cannot be tampered with. For the Company's e-commerce trading platforms and institutional clients, the Project can provide comprehensive services in warehouse management, data sharing, certificate storage, traceability, and verification, aiming to tackle key industry challenges, such as warehouse data lag and fraudulent warehouse data caused by the imbalanced development of data management in the commodities industry. The Project can lead to an effective digital warehouse management through improving operating efficiency and reducing the risks and costs of transactions and financing in the commodities industry chain.
Pursuant to the LOI, the Company, BJDT, and SMCM agree to establish a joint venture fund company with an estimated total size of RMB300 million. The Company and BJDT agree to be responsible for the Fund's operations and contribute
Ms. Renmei Ouyang, the Chief Executive Officer of the Company, stated, "We are excited to establish the special fund of RMB300 million with SMCM and this is the start-up stage of our growth plan. We will increase the investment in the Fund accordingly based on the development of the Project. In the meantime, we plan to accelerate the construction of domestic and overseas digital cloud warehouses, strengthen the research and development of smart technologies, create a digital economy in commodities industry, and promote the Company's strategic transformation."
About Shenzhen Meifu Capital Management Co., Ltd.
Established in September 2015, Shenzhen Meifu Capital Management Co., Ltd.("SMCM") is a private equity investment institution that focus on industrial investment and a pioneer in guiding government investment funds in South China. SMCM assists promising enterprises by injecting industrial funds and encouraging industrial transformation. It is a new investment and financing platform that aims at upgrading good-quality industries and improving local economic development.
About TD Holdings, Inc.
TD Holdings, Inc. is a service provider currently engaging in commodity trading business and supply chain service business in China. Its commodities trading business primarily involves purchasing non-ferrous metal product from upstream metal and mineral suppliers and then selling to downstream customers. Its supply chain service business primarily has served as a one-stop commodity supply chain service and digital intelligence supply chain platform integrating upstream and downstream enterprises, warehouses, logistics, information, and futures trading. For more information, please visit http://ir.tdglg.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of TD Holdings, Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: there is uncertainty about the spread of the COVID-19 virus and the impact it will have on the Company's operations, the demand for the Company's products and services, global supply chains and economic activity in general. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
Ascent Investor Relations LLC
Ms. Tina Xiao
Email: tina.xiao@ascent-ir.com
Tel: +1 917 609 0333
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SOURCE TD Holdings, Inc.
FAQ
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