TD Holdings, Inc. (Nasdaq: GLG) (the “Company”), a commodities trading service provider in China, today announced that its subsidiary Tongdow (Hainan) Digital Technology Co., Ltd. (“Tongdow Hainan”) has entered into a letter of intent with Yunfeihu IoT Co. Ltd. (“Yunfeihu”) and Tongdow E-commerce Group Co., Ltd. (“Tongdow E-commerce”) on February 5, 2021 to acquire eight software copyrights for commodities storage in digital cloud warehouse.
Pursuant to the letter of intent by and among Tongdow Hainan, Yunfeihu and Tongdow E-commerce, Tongdow Hainan will acquire the following eight software copyrights from Tongdow E-commerce and Yunfeihu: Smart Hardware Management Platform System 3.0, Smart Storage System Management Software, Lecheng Smart HD Video Conference System V1.0, Smart Storage APP system, Flat Panel Vehicle APP System, Smart Storage Hans-Held Device APP System, Statistical Management of Account Transfer Fees of Warehouse Orders System V3.0, and Supply Chain Finance OA System V1.0. The parties have agreed that the consideration for the transfer of the software copyrights will be based on a valuation report from an independent third-party agreed upon by all parties. Tongdow E-commerce and Yunfeihu have agreed to be bound by an exclusivity period of 6 months with Tongdow Hainan for the transfer of the eight software copyrights pursuant to the LOI.
The Company aims to empower its existing digital cloud warehouse system with these blockchain technologies to provide support for more diversified settlement channels of commodity trades such as payments by bitcoin or other encrypted currencies. Meanwhile, such blockchain as well as internet of things (IoTs) technologies shall be applied to improve the efficiency of the Company’s warehouse order tracking system in order to standardize order management to prevent fabrications and cause orders to be more easily traceable.
The innovations would ensure a detailed recording of the trading, account transfer and other information such as place of origins as well as quality control of the goods in consideration, which effectively digitalizes the entire supply chain process and creates a safe environment for inventory management and financing activities that require precise information on the production, sales and other goods-related data based on the cloud warehouse system.
Ms. Renmei Ouyang, CEO of the Company commented, “The planned acquisitions represent us stepping forward to become a commodity trading platform that is technologically supported by blockchain and IoTs. These two important technologies help verify ownership of goods and turn physical assets into highly efficient and secure digital assets.”
Completion of the transaction is subject to due diligence investigations by the relevant parties, the negotiation and execution of a definitive agreement and satisfaction of the conditions negotiated therein and of other customary closing conditions. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated. Further, readers are cautioned that those portions of the LOI that describe the proposed transaction, including the consideration to be issued therein, are non-binding.