WUHAN, China, June 6, 2016 /PRNewswire/ -- Zall Development Group, an Wuhan, China-based investment holding company, is in the middle of an initiative to build an intelligent business ecosystem as part of its plans to add a financial services group to the firm's collection of businesses. The firm announced on June 3rd its intent to acquire Shanghai-based Harvest Capital's financial leasing, asset management and financial services entities for HKD 216 million and merging the three with existing operations to establish Zall Financial Group.
The announcement spells out Zall's plans used its vehicle Zall Financial Services and other subsidiaries to wholly acquire Harvest Financial Leasing as well as Nine Fish Asset Management and 90% of the shares of Harvest Financial Services for HKD 216 million.
Harvest Financial Leasing's main line of business is the provision of financing and leasing services, while Nine Fish is principally engaged in asset management, and Harvest Financial Services is chiefly a supplier of information concerning investment and financing. The three companies each have a long track record of experience in their respective fields, have received solid backing from their original owners and were previously held by Harvest Capital. Harvest Capital is a subsidiary Harvest Fund Management Co., Ltd., one of the first companies to receive approval from the China Securities Regulatory Commission for the management of assets on behalf of individual clients.
Harvest Financial Leasing is the holder a financial leasing license issued by China's Ministry of Commerce, enabling the company to engage in financial leasing and factoring anywhere across the country. The acquisition will allow Zall to add a financial leasing capacity to its supply chain of services in a move to support the fast growing demand for financial services. Harvest Financial Services has received an award for its role as an "Outstanding China Internet Financial Enterprise" and has wide experience in the management of an online financial platform. Bringing the three companies on board will allow Zall to leverage the competencies of their highly talented staff and further customize the specialized financial services offered as part of the supply chain for merchants using Zall's business platform, as well as improve efficiency in terms of the business management and the deployment of funds.
The acquisition will be consolidated with Zall's existing credit and loan guarantee services firm as well as its payment processing vehicle, to form Zall Financial Group and is an important step in the group's drive to complete the formation of an intelligent business ecosystem, while strengthening the financial services supply chain. The group will provide all platform customers, both online or offline, with a one-stop suite of financial, logistics, operations management and information services.
In terms of financial services, platform customers will have access to a complete supply chain of services, including financing, credit and loan guarantee services, financial leasing, factoring and asset management, creating an end-to-end suite of services. Zall will continue to seek out other internet-related financial service businesses to further enrich the supply chain. The company feels confident in saying that, through the acquisition of these industry-leading companies, the new Zall Financial Group, with a nationwide scope, will grow in competitiveness and influence. Strong financial services will serve as the efficient lubricant and accelerator for the further growth of Zall's intelligent business ecosystem.
Since the initiation of Zall's "Cloud City" six months ago, Zall's online wholesaling platform Zallgo has seen the turnover for goods and service purchased through the platform reach ten billion yuan. With this eye-catching achievement following the transition from an offline wholesale market to an online one, Zall Group has already become a recognized mainstream player among China's e-commerce firms, with the aim of moving the platform into a leading position among the sector's many players. Zall's development plan is to build an intelligent business ecosystem as well as the world's largest consumer goods B2B trading platform and database. The company has taken many steps since the launch of the "Internet Magic Cube" initiative, from taking a shareholding position in Beijing-based international online retailer LightInTheBox Holding and acquiring Shenzhen-based Huimao Technology, followed by the establishment of Zall Zhilian, a smart payment system and hardware integration initiative, and finally, the setup of a financial group. Zall expects its domestically-leading intelligent B2B business ecosystem to soon become a household word for every digitally-connected person in China.
