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HONG KONG - Reitar Logtech Holdings Limited (NASDAQ:RITR), a logistics technology company with a market capitalization of $121.77 million and trailing twelve-month revenue of $48.6 million, announced a strategic partnership with China’s Hangzhou Xianmu Technology Co., Ltd. to develop a global tokenized smart supply chain ecosystem for casual catering. According to InvestingPro data, the company has demonstrated strong revenue growth of 50% in the past year.
According to a press release statement, the companies will establish a joint venture focused on Hong Kong and overseas markets. The collaboration aims to combine Reitar’s logistics ecosystem platform and blockchain tokenization capabilities with Xianmu’s digital procurement platform and supply chain management expertise. While Reitar’s stock has experienced a significant decline of 47.86% year-to-date, InvestingPro analysis suggests the stock is currently trading below its Fair Value, presenting a potential opportunity for investors interested in the blockchain and logistics sector.
Xianmu currently serves over 300,000 restaurant clients across more than 120 major cities in China. The company specializes in providing supply chain solutions for the casual catering market and has experienced significant growth, with annual GMV growth reportedly exceeding 300% in recent years.
The partnership will initially focus on establishing a smart supply chain demonstration platform in Hong Kong before expanding to the Middle East and Southeast Asia, leveraging Reitar’s second headquarters in Qatar. The companies plan to eventually replicate their model in Europe and Latin America.
John Chan, Chairman & CEO of Reitar Logtech, noted that Xianmu’s expertise in tea beverage, bakery, and coffee supply chains aligns with Reitar’s focus areas. Hannah Yang, COO of Xianmu Technology, emphasized the shared vision between the companies regarding digital and AI-driven supply chains.
The global Chinese foodservice market has grown from $227.55 billion in 2020 to $359.39 billion in 2024, according to industry statistics cited in the announcement. Frost & Sullivan predicts the overseas Chinese restaurant market will reach $409.8 billion by 2026, with a compound annual growth rate of 9.4%.
The partnership will utilize blockchain technology to tokenize supply chain assets, with Reitar’s RBTC serving as a trading tool within the ecosystem to enable cross-border settlement and investment opportunities. With a healthy current ratio of 1.58 and moderate debt levels, Reitar appears well-positioned to execute its expansion strategy. For deeper insights into Reitar’s financial health and growth potential, including 15 additional ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, Reitar Logtech Holdings Limited has entered into a strategic partnership with Solowin Holdings. This collaboration involves Solowin’s fund potentially investing up to $150 million in Reitar’s logistics automation facilities. According to a non-binding memorandum of understanding, the investment will focus on developing logistics automation facilities and automated cold storage assets. The agreement also includes plans to explore logistics asset tokenization and stablecoin applications. These developments are expected to enhance Reitar’s technological capabilities in the logistics sector. This strategic move marks a significant step for both companies in expanding their presence and innovation in the logistics industry. The partnership is still in its preliminary stages, with further details anticipated as the collaboration progresses.
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