CN Logistics International Holdings Limited
(Incorporated in the Cayman Islands with limited liability)
CN Logistics Italy's Business Expansion as a Regional Hub Grasping Post-COVID O2O Opportunities
[Hong Kong - 24 June 2021] A well-established international logistics solutions provider, CN Logistics International Holdings Limited (the "Company", together with its subsidiaries, the "Group", stock code: 2130), is pleased to announce its plan on enforcing the Group's business layouts in two countries, especially Italy, through the acquiring two non-wholly-owned subsidiaries in Italy and Switzerland, so as to promote the Italian regional office to become the Group's European business hub, specialising in handling logistics services in and out of Europe, and seeking more business opportunities.
According to the Memorandum of Understanding signed between the Group and the two subsidiaries, the Group intends to pay no more than HK$10 million and HK$150 million to CN Switzerland and CN Italy in cash and shares, and acquire the remaining 40% and 30% of the issued share capital. After the transaction is completed, the two subsidiaries will become wholly-owned subsidiaries of CN Logistics. The Group intends to develop Italy into European business headquarter and improve its strategic layout. Management expects to integrate valuable resources of European business partners, including infrastructure, customer portfolios, industry talents, in order to seek more development opportunities and provide logistics services for more high-end brands and fine-wine companies, as well as B2C businesses in Asia to facilitate Europe eCommerce dealings on China e-commerce platforms to further enhance business growth and financial performance.
Mr. Ngan Tim Wing, Executive Director and Chief Executive Officer of CN Logistics, commented, "Being a luxury brands-focused logistics service provider, Europe has always been the focus of the Group's development. Through this strategic move, the Group is expected to promote the Italy office to become a European business headquarter, and through equity incentives to establish a closer relationship with the management teams of the two subsidiaries to achieve a win-win situation. Given the unprecedented success of the green logistics launched by the Group in the Greater China market, we also plan to introduce this service to the European market to establish business contacts with a wider range of brands. As the vaccination rate in Europe, especially Italy, continues to increase, we expect that the region's economy will start to gradually recover in the middle of this year, and the demand for luxury goods will gradually rise. I believe that this strategic layout will become timely rain that allows the Group to better grasp new local business opportunities and even seek to provide European logistics services for Asian e-commerce platforms to promote business development and garner more fruitful returns to shareholders.
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About CN Logistics International Holdings Limited
Established in 1991, CN Logistics is a well-established international logistics solutions provider with core business of providing air freight forwarding services and distribution and logistics services in relation to fashion products and fine wine, primarily focusing on high-end fashion (including luxury and affordable luxury) products. According to the CIC Report, the Company ranked first in the distribution and logistics market for high-end fashion products in both the PRC and Hong Kong in 2019.
This press release is issued by DLK Advisory Limited on behalf of CN Logistics International Holdings Limited.
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24/06/2021 Dissemination of a Financial Press Release, transmitted by EQS Group.