BRADENTON, Fla. - BAIYU Holdings, Inc. (NASDAQ: BYU), a prominent B2B bulk commodity e-commerce and supply chain service provider, has announced a definitive agreement to acquire Shenzhen Jintongyuan Energy Storage Technology Co., Ltd., a key player in the energy storage battery sector in China. The acquisition, completed through its subsidiary Shenzhen Baiyu Jucheng Data Technology Co., LTD., is part of BAIYU's strategic push into the renewable energy storage battery market.
The share purchase agreement, which was finalized on August 21, 2024, stipulates that BAIYU will acquire 100% equity interest in Jintongyuan for RMB750 million, equivalent to approximately US$105 million. Payment will be made in installments, with the transaction expected to close around September 2024, as approved by BAIYU's board of directors.
Jintongyuan specializes in the R&D, design, sales, and service of energy storage batteries, charging piles, and lithium battery products. The company is committed to becoming a leading global provider of energy storage power and lithium battery operation services. With a focus on the safety, reliability, and system integration of its products, Jintongyuan has adopted an intelligent services-supported business model to enhance user experience. Its energy storage batteries are primarily utilized in large electric power vehicles, including electric trams, golf carts, and forklifts.
The company has a strong presence in the North American market and manages its business cycle from R&D to sales and maintenance through a customized sales model. Jintongyuan partners with third-party entities for the production and installation of its products, offering full-lifecycle solutions that are customized to each scenario.
Ouyang Renmei, CEO of BAIYU Holdings, expressed that the acquisition is a significant step toward expanding into the energy storage and lithium battery industries. She emphasized the company's commitment to driving growth and profitability through technological innovation and industrial upgrades. Renmei also highlighted the strategic importance of the acquisition for global environmental optimization and carbon emission reduction.
BAIYU Holdings is currently expanding its business to include photovoltaic, energy storage power, and fast-charging power stations, providing integrated new energy solutions and operations. The acquisition of Jintongyuan is expected to bolster BAIYU's offerings in the new energy storage systems and specialized sectors.
This news is based on a press release statement from BAIYU Holdings, Inc. and does not include any speculative or promotional content.
In other recent news, BAIYU Holdings has been making strategic moves to reshape its board and expand its business. The company has appointed Rongrong (Rita) Jiang as an independent director. With over a decade of experience in entrepreneurship and corporate finance, Jiang is expected to contribute significantly to BAIYU's growth. She will also join the Audit, Compensation, and Nominating and Governance Committees. Concurrently, Donghong Xiong, a current director, has assumed the role of Chairman of the Nominating and Governance Committee.
These appointments follow the resignation of Xiangjun Wang from his position as an independent director and his roles on the Audit, Compensation, Nominating, and Governance Committees. The changes in BAIYU's Board of Directors are recent developments that reflect the company's ongoing commitment to growth and expansion.
BAIYU has also announced a strategic plan to enter the global new energy vehicle (NEV) market. The company has partnered with U.S.-based Electra New Energy Vehicle, Inc., with plans to take a majority stake of 60% in ENEV. BAIYU's commitment involves an investment of up to $3 million over the next three years. This move underscores BAIYU's dedication to the new energy sector and its strategic plan to solidify its leadership in the field of clean and smart energy solutions.
InvestingPro Insights
In light of BAIYU Holdings, Inc.'s (NASDAQ: BYU) strategic acquisition of Jintongyuan Energy Storage Technology, investors may find the following InvestingPro Data and Tips particularly enlightening as they evaluate the company's financial health and market position:
InvestingPro Data highlights BAIYU's current market capitalization at $209.77 million USD, with a notably low Price to Earnings (P/E) ratio of 4.26. This suggests that the company is trading at a low valuation relative to its earnings. Additionally, the Price / Book ratio as of the last twelve months stands at 0.5, indicating that the stock may be undervalued compared to the company's book value.
Furthermore, BAIYU has demonstrated a robust price performance with a 50.0% return over the last week, and a staggering 262.07% return over the last month. This impressive short-term growth could capture the interest of momentum investors looking for high-performing stocks.
Among the InvestingPro Tips, we note that BAIYU is trading at a low Price / Book multiple, which can be an attractive entry point for value investors. Additionally, the company's liquid assets exceed its short-term obligations, indicating a strong liquidity position that could support its operational needs and strategic investments like the recent acquisition.
For those interested in further analysis and insights, InvestingPro offers additional tips on BAIYU Holdings, Inc., available through the dedicated link: https://www.investing.com/pro/BYU. These tips provide valuable perspectives on the company's cash burn rate, volatility, and other key financial metrics that could influence investment decisions.
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