ZW Data Action Technologies Inc. Announces Planned Acquisition of Henan Baodun, Expanding to Short Videos Ecommerce
September 15 2022 - 7:30AM
ZW Data Action Technologies, Inc. (Nasdaq: CNET) ("ZW Data" or the
"Company"), an integrated online advertising, precision marketing,
data analytics, and other value-added services company, today
announced that it has signed a letter of intent (“LOI”), and has
formally proposed an acquisition offer to Henan Baodun Information
Technology Co., Ltd (“Baodun”). Pursuant to the LOI, the offer
price and terms will be negotiated and determined upon completion
of due diligence, and the completion of the transaction is
envisaged in the fourth quarter of 2022. Upon the completion of the
acquisition, Baodun will become a wholly-owned subsidiary of the
Company, and will remain its independency in operation to provide
one-stop eCommerce marketing service solutions and full agency
operation services for customers.
Baodun is a full-service internet marketing company
integrating content marketing, advertising effect optimization and
brand marketing. Baodun has the comprehensive agency qualification
like ByteDance and Kuaishou, and can provide internet advertising
and marketing resources on multiple client side product platforms,
including but not limited to toutiao.com, ixigua.com, TikTok and
Kuaishou. Its major cooperating clients include SF Express, Belle,
and Tongrentang. Baodun generated approximately $50 million in
annualized revenue in 2021 and expects to continue growing with a
double digit’s growth rate this year.
The strategic acquisition of Baodun is intended to
enhance ZW Data’s competitiveness within the industry and
especially in the short video platform market. The addition of
Baodun, together with the Company’s current expertise in
advertising, would significantly improve the Company’s strengths in
short video advertising, merchandising and promotion business
areas, and expand the social eCommerce business to onboard a new
growth point. The Company expects that this acquisition will drive
a meaningful increase in short and long-term ZW Data’s revenue.
“We are excited to announce this planned
acquisition of Baodun. The short video market has expansive
development prospect, and nowadays, social media platforms such as
TikTok and Kuaishou have billions of users domestically and
internationally. The elite veterans of Baodun are primarily located
in Zhengzhou, Henan Province and Guangzhou, Guangdong Province. We
are extremely thrilled that the founder of Baodun, Ms. Ning Lv, as
one of the most experienced ECommerce operators in China, will join
the Company with the management team upon the completion of the
transaction. The addition of the new team will accelerate the
development of our short video merchandising capabilities and
reinforce our commitment to building a leading merchandising
enterprise in China. We believe that this acquisition will drive
the diversification of our business, form a new profit growth
point, and enhance the profitability to bring near and long-term
values for shareholders,” commented Handong Cheng, Chairman and
Chief Executive Officer of ZW Data.
About ZW Data Action Technologies
Inc.
Established in 2003 and headquartered in
Beijing, China, ZW Data Action Technologies Inc. (the “Company”)
offers online advertising, precision marketing, data analytics and
other value-added services for enterprise clients. Leveraging its
fully integrated services platform, proprietary database, and
cutting-edge algorithms, ZW Data Action Technologies delivers
customized, result-driven business solutions for small and
medium-sized enterprise clients in China. The Company also develops
blockchain and artificial intelligence enabled web/mobile
applications and software solutions for the general public,
enterprise clients, and government agencies. More information about
the Company can be found at: http://www.zdat.com/.
Safe Harbor Statement
This release contains certain "forward-looking
statements" relating to the business of ZW Data Action
Technologies Inc., which can be identified by the use of
forward-looking terminology such as "believes," "expects,"
"anticipates," "estimates" or similar expressions. Such
forward-looking statements involve known and unknown risks and
uncertainties, including business uncertainties relating to
government regulation of our industry, market demand, reliance on
key personnel, future capital requirements, competition in general
and other factors that may cause actual results to be materially
different from those described herein as anticipated, believed,
estimated or expected. Certain of these risks and uncertainties are
or will be described in greater detail in our filings with the
Securities and Exchange Commission. These forward-looking
statements are based on ZW Data Action
Technologies Inc.’s current expectations and beliefs
concerning future developments and their potential effects on the
Company. There can be no assurance that future developments
affecting ZW Data Action Technologies Inc. will be those
anticipated by ZW Data Action Technologies Inc. These
forward-looking statements involve a number of risks, uncertainties
(some of which are beyond the control of the Company) or other
assumptions that may cause actual results or performance to be
materially different from those expressed or implied by such
forward-looking statements. ZW Data Action Technologies
Inc. undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
For more information, please
contact:
Sherry ZhengWeitian Group LLCEmail:
shunyu.zheng@weitian-ir.comPhone: +1 718-213-7386
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