TD Holdings Announces Entry into Non-Binding LOI for the Acquisition of Tongdow E-Commerce Group
SHENZHEN, China, Dec. 15, 2020 /PRNewswire/ -- TD Holdings, Inc. (Nasdaq: GLG) (the "Company"), a commodities trading service provider in China today announced that it has entered into a non-binding letter of intent ("LOI") to acquire Tongdow E-Commerce Group Co., Ltd. ("Tongdow "), a B2B digital e-commerce platform for commodities trading and integrated supply chain services headquartered in Shenzhen China.
Pursuant to the terms of the LOI, the Company will acquire control and economic interest of Tongdow pursuant to certain VIE arrangements and the equity owners of Tongdow shall receive a combination of restricted shares and cash payment as consideration. As the transaction proceeds, the Company will publicly disclose required information either through press releases or SEC filings, as appropriate.
Tongdow aims to empower companies to change their business methods of purchase, production, sales, logistics, and billing, and utilize the power of Internet technology and business model innovation to improve business efficiency and level their playing field. Currently, Tongdow has approximately 150,000 customers and 48 independent developed patents. Its cumulative transaction scale (GMV) has exceeded RMB800 billion since it is incorporated. It has established alliances with 62 warehousing companies in China, and its commodity transactions has exceeded RMB10 billion. Tongdow has established in-depth cooperative relationships with many large institutions and enterprises, including China Construction Bank, Bank of China, China Guodian, Datang Power, China Aluminum, Yunnan Tin Industry, Kunshan Iron and Steel Group, Trafigura Investment (China), JD Digital, China National Reserve Group, COSCO Group (COSCO), etc. Tongdow management believes it is one of the leaders of the vertical B2B non-ferrous commodities e-commerce platform.
The Company's planned acquisition of Tongdow Group is aimed to transform the Company's bulk commodities trading platform using digital technology and to improve the Company's profitability. Following the completion of the planned acquisition, the Company's goal is to build an ecosystem of digital e-commerce platforms through digital management, operation of global commodities, layout of 5G smart-warehouses, and to provide in-depth services that meet the various needs of its customers. The Company believes that that in the next 5 years, its platform's merchandise trading scale (GMV) will exceed US$1.5 trillion and become an influencer in the pricing of [non-ferrous?] commodities in the global market.
About TD Holdings, Inc.
TD Holdings, Inc. (Nasdaq: GLG) is a commodities trading service provider conducted under the brand name "Huamucheng" by the Company's wholly owned subsidiary, Shenzhen Huamucheng Trading Co., Ltd headquartered in Shenzhen. 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.