(Yicai Global) June 19 -- Sichuan Shengda Forestry Industry, a clean energy company, will invest in Hangzhou Quanzhimai E-commerce to build an integrated business-to-consumer, or B2C, service platform to promote cross-border e-commerce.
Shengda Forestry will invest CNY780 million (USD120 million) to buy under 20 percent equity, which would value the target company at CNY4 billion. The financing amount will be used for cross-border e-commerce channel promotion and logistics system construction, as well as enhancing information technology infrastructure.
Shengda Forestry Industry and Quanzhimai have also signed a valuation adjustment agreement, which requires the net profit of the latter in the next three years should top CNY500 million, said a company statement.
The current assets of Quanzhimai reach over CNY2 billion and its net assets stand at CNY1.7 billion, with a net profit of CNY180 million last year, said the statement.
"Through the cross-border e-commerce platform, listed companies can create more efficient, flexible, diverse and cost-saving cross-border trading network, which would also effectively enhance the company's profile in the industry chain," a company official from Quanzhimai told the Investors' Circle.
Quanzhimai, established in 2008, is a cross-border e-commerce company dedicated to exporting China's excess clothing and textile production capacity to overseas end customers.
Quanzhimai has already set up a sales system mainly based on self-operated websites and supplemented by third-party platform online shops. The company's overseas services cover North America, Europe, Oceania and Asia. It has 18 branches in China.
The number of users registered on the company's main website exceeds 30 million, with the average number of users registered on other websites in different languages surpassing 10 million, it says.
Editor: Mevlut Katik