BEIJING, Sept. 15, 2022 (Globe NEWSWIRE) — ZW Info Motion Systems, Inc. (Nasdaq: CNET) (“ZW Knowledge” or the “Firm”), an integrated on the net promoting, precision internet marketing, knowledge analytics, and other worth-additional solutions firm, now announced that it has signed a letter of intent (“LOI”), and has formally proposed an acquisition offer to Henan Baodun Facts Engineering Co., Ltd (“Baodun”). Pursuant to the LOI, the offer cost and conditions will be negotiated and decided upon completion of due diligence, and the completion of the transaction is envisaged in the fourth quarter of 2022. On the completion of the acquisition, Baodun will turn into a wholly-owned subsidiary of the Business, and will keep on being its independency in operation to provide 1-quit eCommerce marketing and advertising services options and whole agency operation services for customers.
Baodun is a whole-assistance net promoting business integrating information advertising, promotion effect optimization and brand internet marketing. Baodun has the complete agency qualification like ByteDance and Kuaishou, and can supply web promotion and internet marketing resources on various client aspect merchandise platforms, such as but not constrained to toutiao.com, ixigua.com, TikTok and Kuaishou. Its significant cooperating clientele involve SF Convey, Belle, and Tongrentang. Baodun generated somewhere around $50 million in annualized earnings in 2021 and expects to continue rising with a double digit’s growth level this year.
The strategic acquisition of Baodun is meant to increase ZW Data’s competitiveness in just the marketplace and especially in the quick video platform industry. The addition of Baodun, alongside one another with the Company’s current know-how in advertising and marketing, would appreciably increase the Company’s strengths in quick video clip marketing, merchandising and advertising organization locations, and develop the social eCommerce business enterprise to onboard a new growth issue. The Business expects that this acquisition will drive a significant improve in quick and prolonged-expression ZW Data’s earnings.
“We are enthusiastic to announce this planned acquisition of Baodun. The short online video marketplace has expansive development prospect, and at present, social media platforms this sort of as TikTok and Kuaishou have billions of users domestically and internationally. The elite veterans of Baodun are mostly found in Zhengzhou, Henan Province and Guangzhou, Guangdong Province. We are extremely thrilled that the founder of Baodun, Ms. Ning Lv, as a person of the most knowledgeable ECommerce operators in China, will be a part of the Company with the administration staff on the completion of the transaction. The addition of the new workforce will speed up the enhancement of our limited video clip merchandising abilities and enhance our determination to creating a top merchandising business in China. We believe that this acquisition will drive the diversification of our organization, variety a new profit growth point, and greatly enhance the profitability to deliver in the vicinity of and extended-time period values for shareholders,” commented Handong Cheng, Chairman and Main Executive Officer of ZW Information.
About ZW Details Action Systems Inc.
Proven in 2003 and headquartered in Beijing, China, ZW Info Action Systems Inc. (the “Company”) provides on the net promoting, precision internet marketing, information analytics and other benefit-additional expert services for organization customers. Leveraging its thoroughly integrated expert services platform, proprietary databases, and cutting-edge algorithms, ZW Information Motion Technologies delivers customized, consequence-pushed company answers for modest and medium-sized enterprise customers in China. The Firm also develops blockchain and synthetic intelligence enabled website/cell apps and software program options for the basic public, organization consumers, and authorities organizations. Much more information and facts about the Business can be observed at: http://www.zdat.com/.
Safe Harbor Statement
This release is made up of specific “ahead-seeking statements” relating to the enterprise of ZW Details Action Technologies Inc., which can be determined by the use of forward-seeking terminology these as “thinks,” “expects,” “anticipates,” “estimates” or equivalent expressions. These kinds of ahead-looking statements contain identified and not known challenges and uncertainties, like organization uncertainties relating to federal government regulation of our sector, current market demand from customers, reliance on key personnel, long run capital requirements, levels of competition in standard and other factors that may perhaps bring about true outcomes to be materially unique from all those described herein as expected, believed, believed or anticipated. Specific of these pitfalls and uncertainties are or will be explained in bigger depth in our filings with the Securities and Exchange Fee. These ahead-seeking statements are based on ZW Information Motion Technologies Inc.’s latest anticipations and beliefs relating to foreseeable future developments and their prospective consequences on the Company. There can be no assurance that long run developments affecting ZW Facts Motion Technologies Inc. will be those expected by ZW Details Action Systems Inc. These forward-looking statements contain a quantity of threats, uncertainties (some of which are beyond the manage of the Organization) or other assumptions that may possibly trigger real final results or effectiveness to be materially various from those expressed or implied by this sort of ahead-looking statements. ZW Knowledge Action Systems Inc. undertakes no obligation to publicly update or revise any ahead-looking statements, regardless of whether as a result of new data, future situations or in any other case, other than as may possibly be necessary below relevant securities regulations.
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