Peak Acquisition Target, LongKey, Takes Important Step to Accelerate Growth of IFS Product Offering
December 11 2014 - 10:35AM
Peak Positioning Technologies Inc. (TSX-V:PKK) (Pink Sheets:PKKFF)
("Peak" or the "Company") today announced that its acquisition
target, LongKey Hong Kong Limited ("LongKey"), has taken an
important step to accelerate the growth of its internet financial
services (IFS), offered in conjunction with the Industrial and
Commercial Bank of China ("ICBC"), by sending 20 of its employees
to work directly from ICBC's Hangzhou offices.
The move to have the 20 LongKey employees work from ICBC's
offices came at the request of ICBC and is intended to speed up the
setup process to get as many manufacturers registered on the IFS
platform as soon as possible. ICBC has over 2 million manufacturing
clients, including approximately 100,000 in the province of
Zhejiang alone, of which about 5,000 are currently on standby to be
setup and registered on the platform. Each ICBC manufacturing
client has on average about 80 small businesses and entrepreneurs
who purchase products from them. There are currently over 400
registered manufacturers and 2,000 small business owners and
entrepreneurs using the IFS platform.
"When we met with ICBC and came up with the concept for the IFS
platform, we had no doubt that it would be well received by the
manufacturers and those who buy from them," commented Liang Qiu,
LongKey's CTO and head of the IFS project. "However, we
underestimated just how positive the response would be, both from
the manufacturers and their reseller partners. We never expected to
have a backlog of manufacturers waiting to be setup on the platform
so soon after the launch of the project. It's obviously in our
collective best interests to get them setup as soon as possible,
and having some of our employees work directly within ICBC's
premises is an important step to allow us to achieve that goal,"
concluded Mr. Qiu.
About LongKey's IFS Product Offering
LongKey and ICBC first launched the IFS project in the city of
Hangzhou, considered China's e-commerce hub and where Chinese
e-commerce giant, Alibaba's headquarters are located. The IFS
offering is changing how Chinese small businesses and entrepreneurs
order products directly from manufacturers to resell them online at
a profit. Instead of placing orders via phone or fax, the IFS
platform allows them to use a web interface to place their orders
from ICBC's manufacturing partners. This allows ICBC to analyse the
data entered and generated by the platform to help qualify them for
loans and lines of credit from ICBC. These small businesses and
entrepreneurs pay a RMB1,000 (CAD$180) annual fee to use the
platform. ICBC's manufacturing clients pay a RMB10,000 (CAD$1,800)
one-time setup fee and a RMB10,000 (CAD$1,800) annual registration
fee to be included in the program. The manufacturing annual
registration fee is waived for manufacturers who refer 10 or more
small businesses and/or entrepreneurs to the program. All fees
payable by manufacturers, small businesses and entrepreneurs
related to their use of the IFS platform are payable to LongKey.
ICBC's benefits from the IFS program come from the new clients it
brings to ICBC, and the fees it earns on the loans, lines of credit
and other financial services offered to the program
participants.
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. ("Peak"), (TSX-V:PKK) (Pink
Sheets:PKKFF), is a management company whose wholly-owned
subsidiary, Peak Positioning Corporation provides Web development
services and develops mobile software platforms destined to mobile
network operators worldwide. Peak aims to deliver value to its
shareholders by assembling a portfolio of high-growth projects and
companies in the mobile, e-Commerce, and cloud-computing spaces in
North America and China. For more information:
http://www.peakpositioning.com
The TSX Venture Exchange has neither approved nor disapproved
the contents of this news release. Neither the TSX Venture
Exchange, Inc. nor its Regulation Service Provider (as that term is
defined under the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of the contents of this
news release.
CONTACT: For more information:
Cathy Hume
CEO
CHF Investor Relations
Phone: 416-868-1079 ext.: 231
Email: cathy@chfir.com
Or
Johnson Joseph
President and CEO
Peak Positioning Technologies Inc.
Phone: 514-340-7775 ext.: 501
Email: investors@peakpositioning.com
ML Dep 8.50 (NYSE:PKK)
Historical Stock Chart
From Sep 2024 to Oct 2024
ML Dep 8.50 (NYSE:PKK)
Historical Stock Chart
From Oct 2023 to Oct 2024