Yimutian partners with BC Technology for agricultural asset digitization

BEIJING - Yimutian Inc. (Market cap: $228.75M), an agricultural digital service company in China, has signed a strategic cooperation agreement with Hong Kong’s BC Technology Limited to collaborate on cross-border payment solutions and agricultural asset digitization, according to a press release issued Thursday. According to InvestingPro data, Yimutian generated $21.54M in revenue over the last twelve months, operating with moderate debt levels.

Under the agreement, Yimutian plans to purchase at least $12 million worth of digital assets in three batches through BC Technology’s platform to facilitate cross-border trade capital flow for agricultural products.

The companies will work together to develop Real-World Asset (RWA) digitization products using Yimutian’s agricultural resources, including Chinese medicinal materials, spices, and seedlings as underlying assets. BC Technology will contribute its technological expertise for product design and risk assessment.

"Currently, the global agricultural trade is facing a crucial opportunity for digital transformation," said Jinhong Deng, CEO of Yimutian, in the statement. "This cooperation will realize the complementary advantages of ’agricultural resources + digital technology.’"

Yimutian serves nearly 60 million users across 2,800 counties in China, offering services for cultivation, procurement, and sales of over 15,000 types of agricultural products.

The collaboration aims to create new business models for cross-border agricultural trade, international order-based cultivation, and procurement of agricultural-related resources.

According to the press release, the partnership represents an effort to transform traditional agricultural assets into products for the international market through the RWA model, potentially connecting agricultural assets to global capital markets. Based on current market valuations, InvestingPro’s Fair Value analysis suggests the stock may be trading above its intrinsic value, making it crucial for investors to monitor the company’s execution of this strategic initiative.

In other recent news, Yimutian Inc., a Chinese agricultural B2B platform, announced the pricing of its initial public offering, which raised approximately $20.5 million. The IPO was priced at $4.10 per American depositary share (ADS), with each ADS representing 25 Class A ordinary shares. The offering included 5,010,000 ADSs, where the company itself offered 4,522,000 ADSs, and selling shareholders contributed 488,000 ADSs. Additionally, Yimutian has provided the underwriter a 45-day option to purchase up to an additional 678,300 ADSs. These developments mark significant steps for Yimutian as it seeks to expand its financial base through public investment. The IPO pricing and structure suggest a strategic move to attract investors and grow its market presence. This recent activity reflects Yimutian’s efforts to capitalize on its market position and enhance its financial resources.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.