Gelonghui, March 22, 丨 International Commercial Settlement (00147.HK) announced that on March 22, 2024, Xinzhi, Wen Deyu and Wen Yichang signed a joint venture agreement. According to this, a joint venture will be established in Fuzhou, China. The joint venture is mainly engaged in providing a full range of digital logistics services to logistics companies, shippers and drivers through digital intelligence application platforms.
China has the largest logistics market in the world, but the Chinese logistics market also faces long-standing problems such as inefficient road transport operations and lack of trust between shippers and truck drivers. Based on insight into technological development trends, the Group plans to use Internet technology and digital means to enter the huge logistics market, improve the operational efficiency of China's road transport industry, and lead the digital transformation of the industry.
The board of directors believes that the digital logistics market has broad prospects for development. Due to the relatively small scale of investment, the board of directors believes that the Group can take advantage of the opportunities brought by joint ventures to expand its business footprint to the digital logistics market at relatively low cost and risk, diversify the Group's revenue sources, and bring long-term stable and sustainable revenue growth to the Group.