Benzinga | Dec 2, 2021 08:08AM EST

TD Holdings, Inc. Enters Into Letter Of Intent To Launch RMB300M Special Fund To Accelerate Development Of Digital Cloud Warehouse

TD Holdings, Inc. (Nasdaq: GLG) (the "Company"), a commodities trading service provider in China, today announced that the Company and its wholly owned subsidiary, Shenzhen Baiyu Jucheng Data Technology Co., Ltd. ("BJDT"), have entered into a non-binding letter of intent (the "LOI") with Shenzhen Meifu Capital Management Co., Ltd. ("SMCM"), a private equity investment management institution and a pioneer in guiding government investment funds in South China, to launch a RMB300 million special fund (the "Fund") to accelerate development of a digital cloud warehouse (the "Project").

The Project is specifically used to build the Company's digital cloud warehouse platform, which utilizes Internet of Things and blockchain technology to record and track the data of its commodities warehouse, including inventory, logistics, transaction, and financing to ensure that the data is accurate and valid and cannot be tampered with. For the Company's e-commerce trading platforms and institutional clients, the Project can provide comprehensive services in warehouse management, data sharing, certificate storage, traceability, and verification, aiming to tackle key industry challenges, such as warehouse data lag and fraudulent warehouse data caused by the imbalanced development of data management in the commodities industry. The Project can lead to an effective digital warehouse management through improving operating efficiency and reducing the risks and costs of transactions and financing in the commodities industry chain.

Pursuant to the LOI, the Company, BJDT, and SMCM agree to establish a joint venture fund company with an estimated total size of RMB300 million. The Company and BJDT agree to be responsible for the Fund's operations and contribute 20% to the Fund's registered capital, while SMCM agrees to contribute 80% to the Fund's registered capital. Both parties agree to appoint managers and professionals to the new company to manage the fund.

Ms. Renmei Ouyang, the Chief Executive Officer of the Company, stated, "We are excited to establish the special fund of RMB300 million with SMCM and this is the start-up stage of our growth plan. We will increase the investment in the Fund accordingly based on the development of the Project. In the meantime, we plan to accelerate the construction of domestic and overseas digital cloud warehouses, strengthen the research and development of smart technologies, create a digital economy in commodities industry, and promote the Company's strategic transformation."