Street Calls of the Week
CHENGDU, China - BGM Group Ltd. (NASDAQ: BGM), currently valued at $1.8 billion with a healthy current ratio of 3.39, revealed today that it has finalized agreements to acquire Xingdao Intelligent Cloud Chain and YD Network Technology for a total of RMB800 million. The transaction, paid in newly issued shares, will see the former shareholders of both companies own approximately 15.6% of BGM’s outstanding share capital after the closure expected by end of June 2025.
Xingdao Intelligent, a service robot manufacturer in China, boasts over 300 patents in the field and is recognized for its robotic hardware and AI services. The acquisition aims to enhance BGM’s AI capabilities, particularly in integrating hardware and software to complete the "perception-understanding-execution" cycle in real-world applications.
YD Network, on the other hand, specializes in AI-powered stock trading solutions. Its addition to BGM’s portfolio is set to extend the company’s AI reach into the fintech sector, creating a cross-industry intelligence ecosystem.
Chen Xin, CEO of BGM, expressed confidence that these acquisitions will advance the company’s AI workforce platform and open new avenues in stock and capital markets. By integrating Xingdao Intelligent’s embodied intelligence and YD Network’s industry-specific AI applications, BGM is poised to strengthen its multi-agent AI productivity platform strategy.
The move is expected to solidify BGM’s position in algorithmic innovation, hardware-software integration, and market expansion, offering clients more efficient and scalable solutions. This strategic expansion reflects BGM’s commitment to building a comprehensive matrix of AI capabilities. According to InvestingPro data, BGM currently operates with a gross profit margin of 16.39% and trades at a notably high EBITDA multiple, suggesting investors are pricing in significant growth expectations. The information reported is based on a press release statement.[Get access to 8 more exclusive InvestingPro Tips and comprehensive financial metrics to make informed investment decisions.]
In other recent news, BGM Group Ltd. announced a series of strategic acquisitions and leadership changes. The company plans to acquire HM Management Company Limited for $41.7 million in an all-stock deal, aiming to enhance its AI application portfolio by integrating Shuda Technology and New Media Star’s platforms. Additionally, BGM has entered into a definitive agreement to acquire Wonder Dragon Global Limited, expanding its healthcare offerings by incorporating Qingzhuan dark tea into its biotechnology platform. This transaction involves issuing 38,165,290 Class A ordinary shares valued at approximately RMB550 million. Furthermore, BGM is set to acquire YX Management Company Ltd. for $95 million, which will strengthen its AI-driven platform, DuXiaoBao, by utilizing YX’s expertise in scalable operations and digital infrastructure.
In a separate development, BGM has announced a leadership reshuffle. Mr. Zhanchang Xin will resign as Chairman and be succeeded by Mr. Chen Xin, the current CEO, effective March 1, 2025. This leadership transition is part of BGM’s strategy to embrace technological transformation and growth. Mr. Lin Zhang will also join the board as an independent director and chair of the compensation committee. These changes are aimed at positioning BGM for success in the evolving tech landscape.
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