Molecular Data Inc. deepens its logistics capabilities with renowned player partnership

Rhea-AI Summary

Molecular Data Inc. (Nasdaq: MKD) has announced a strategic partnership with a notable player in China's logistics sector, enhancing its logistics capabilities in the chemical industry. This partnership aims to facilitate a more efficient dispatch system for the approximately 300,000 trucks involved in hazardous materials transport. The chemical logistics market exceeded USD50 billion in 2020, indicating substantial growth potential. This collaboration is expected to optimize logistics efficiency, thereby reducing costs for customers, aligning with the company's goal to modernize the traditional chemical sector.

Positive

• Strategic partnership with a recognized logistics company to strengthen logistics capabilities.
• Potential to enhance efficiency and reduce costs for customers in chemical logistics.
• Participation in a market exceeding USD50 billion, indicating significant growth opportunities.

Negative

• None.

SHANGHAI, Sept. 13, 2021 /PRNewswire/ -- Molecular Data Inc. (Nasdaq: MKD), a leading technology-driven platform in China's chemical industry, today announced that it has reached a strategic partnership memorandum for a potential transaction, including a stake in a renowned Chinese logistics player with close to a decade of domain expertise.

In 2020, the chemical logistics business surpassed the USD50 billion mark and there are approximately 300,000 trucks being deployed in hazardous materials transportation.

The collaboration will deploy systems to accurately dispatch these trucks and such a strengthened logistics capability will address inadequacies in the transactions, as customers will be able to increase logistics efficiency and reduce costs.

About Molecular Data Inc.

Molecular Data Inc. is a leading technology-driven platform in China's chemical industry, connecting participants along the chemical value chain through integrated solutions. The Company delivers e-commerce solutions, financial solutions, warehousing and logistics solutions, and SaaS suite that are intended to solve pain points for participants in the traditional chemical industry. Built upon a comprehensive knowledge engine and artificial intelligence (AI) capabilities, the Company's e-commerce solutions are mainly offered through its online platform, consisting of molbase.com, molbase.cn, Moku Data WeChat account, Chemical Community APP and other ancillary platforms.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue" or other similar expressions. Among other things, the quotations from management in this announcement, as well as the Company's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a variety of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's goals and strategies; the Company's future business development, results of operations and financial condition; the expected growth of the chemical market; the Company's ability to monetize the user base; fluctuations in general economic and business conditions in China; the potential impact of the COVID-19 to the Company's business operations and the economy in China and elsewhere generally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and the Company undertakes no duty to update such information, except as required under applicable law.

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SOURCE Molecular Data Inc.

FAQ

What is the recent announcement by Molecular Data Inc. related to?

Molecular Data Inc. announced a strategic partnership with a distinguished logistics company to enhance its logistics capabilities in the chemical industry.

How much did the chemical logistics market surpass in 2020?

The chemical logistics market surpassed USD50 billion in 2020.

What does the partnership aim to improve in the logistics sector?

The partnership aims to improve logistics efficiency and reduce costs for customers involved in hazardous material transportation.

What is the significance of the partnership for MKD investors?

The partnership is significant for MKD investors as it enhances the company's logistics capabilities, potentially driving revenue growth in a substantial market.