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Zall, with annual turnover reaching 300 billion yuan, becomes one of China's largest B2B e-commerce platforms

2017-06-29 11:29
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Shenzhen Agricultural Product E-commerce Joint Stock Company executive Wei Zhe appointed as executive director of Zall

Wei Zhe-led Shenzhen Agricultural Product E-commerce Joint Stock Company merges with Zall

WUHAN, China, June 29, 2017 /PRNewswire/ -- Zall Group (HK.02098), a Wuhan, China-based investment holding company, achieved a milestone in the expansion of its B2B e-commerce operations when the group completed the acquisition of Shenzhen Agricultural Product E-commerce Joint Stock Company (Shenzhen Agricultural Product). Zall took a majority position by acquiring a 50.6 per cent stake in the latter and completed consolidation of financial results, creating the largest e-commerce platform for agricultural products in China. 

Zall pulling out all the stops in connecting online and offline channels and related platforms
Zall pulling out all the stops in connecting online and offline channels and related platforms

With an annual turnover of 300 billion yuan, Zall Group becomes one of China's largest B2B e-commerce operators.

On the day of completion of the shareholding transfer, Wei Zhe, a former CEO at Alibaba, presently chairman of the newly acquired company as well as an independent director at Zall Group, takes on the role of executive director and chief strategy officer of Zall Group, with a focus on e-commerce strategy planning and integrated development of the company's many platforms.

The ties between Shenzhen Agricultural Product and Zall date back to October 28, 2016, when Zall chairman Yan Zhi inked an agreement with the agricultural product platform's chairman Wei Zhe in Wuhan whereby Zall acquired a 60.49 per cent stake in the platform for HK$2.6 billion and become the majority shareholder. Since then, both firms have experienced rapid development. After eight months, the deal was successfully completed.

Zall announced in a statement on June 27 that its associate firm, Zall Yunshang Supply Chain Management (Wuhan) Co., Ltd, plans to acquire an 8.36 per cent stake in Shenzhen Agricultural Product for 207 million yuan from Shenzhen Agricultural Products Co., Ltd., and as a result, Zall's stake in Shenzhen Agricultural Product will increase to 68.85 per cent.

A leading e-commerce operator is created

As a result of acquiring a stake in Beijing-based international online retailer LightInTheBox Holding, the initiation of Zall's Cloud City, an online wholesaling transaction and service platform, and the acquisition of Shenzhen Agricultural Product, Zall has expanded its e-commerce footprint and formally set up one of the leading intelligent B2B business ecosystems in China.

Based on brick-and-mortar markets such as Hankou North International Commodity Exchange Center and Tianjin E-commerce Mall, Cloud City has expanded into more than 20 cities across China in just a little over a year, with turnover of approx. 100 billion yuan. LightInTheBox Holding also tied up with Hankou North International Commodity Exchange Center and Cloud City in terms of big data and cross-border e-commerce operations.

The acquisition of Shenzhen Agricultural Product with its talented team and rich B2B experience is a natural step for Zall, which is targeting the agricultural product e-commerce sector and other vertical platforms.

As China's largest agricultural product B2B operator, Shenzhen Agricultural Product boasts rich experience in well-established agricultural product supply chains as well as strong service competence and profitability in terms of transactions, trade, finance and warehouse logistics. With continuous growth over the last several years, the platform has held the number one position in terms of transactions in white sugar as well as playing a significant role in transactions for silk, fruits and other agriculture products. In 2016, Shenzhen Agricultural Product recorded turnover of 20.5 billion yuan, up 61 per cent year on year, cementing the firm's leadership position in the agricultural product B2B sector.

Zall's B2B portfolio

Wei Zhe, a year ago, publicly stated his rosy prospects for China's B2B e-commerce operators.

Zall's completion of the integration of the intelligent B2B business ecosystem with LightInTheBox Holding and Cloud City and the acquisition of Shenzhen Agricultural Product further enhance the firm's leadership position and is a key factor in boosting turnover as it surpassed the 300 billion yuan mark.

Zall is pulling out all the stops in connecting online and offline channels and related platforms. Taking advantage of Hankou North International Commodity Exchange Center's offline resources, Cloud City has witnessed exceptionally fast growth in the number of transactions and has leveraged transaction data to drive customers to engage with some of the firm's other service features including Zall Financial Services.

Coinciding with Zall's expansion into the B2B sector, which ranges from consumer goods, agricultural products, grain and oil, nonferrous metals to bulk commodities, the acquisition of Shenzhen Agricultural Product, a specialist in the operation and management of transaction platforms and supply chain management, will contribute to Zall's efficient integration of its many vertical platforms in terms of operations teams, transaction technologies, management experience and service competencies, resulting in fast growth for each of the platforms. Zall's intelligent B2B business ecosystem will enable the sharing of transaction resources and help the company in its mission of becoming the leader in China's B2B e-commerce space.

Notably, Wuhan Zhongbang Bank, a professional transaction service lender set up by investors including Zall, became operational in May. The bank, part of Zall's efforts in diversification, supports Zall's supply chain financial business and gives customers of Shenzhen Agricultural Product priority in terms of financing services. The unique lineup of financial resources endows Zall with more advantages and growth potential in a fierce B2B e-commerce market.

Photo: https://photos.prnasia.com/prnh/20170628/1886848-1

Source: Zall Group Ltd.

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