LISHUI, China, Nov. 26, 2021 /PRNewswire/ -- Tantech Holdings Ltd (NASDAQ: TANH) ("Tantech" or the "Company") today announced that its subsidiary, First International Commercial Factoring (Shenzhen) Co., LTD ("First International"), won a major factoring agreement valued a RMB 50 million (approximately US$7.8 million). This represents the Company's first such agreement since announcing its intention to develop factoring opportunities. Under the agreement, First International will buy RMB 50 million (approximately US$7.8 million) of outstanding receivables and outstanding invoices at a discounted rate from the customer, which in turn will help improve the customer's cash flow and revenue stability.
The global factoring services market size was estimated at US$3,235.88 billion in 2020 and is expected to reach US$3,400.91 billion in 2021, according to market research firm GrandViewResearch.
Mr. Wangfeng Yan, Chief Executive Officer of Tantech, said, "We are very excited to be taking the next step forward in the development of our new factoring business, which we believe will help our customers and related businesses, strengthen the supply chain, drive increased profitability, and ultimately create value for our shareholders. As an emerging trade financing tool, commercial factoring mainly provides accounts receivable transfer, collection, payment and settlement services for the development of enterprises. In recent years, with the continuous deepening of economic development and the increasing prosperity of trade transactions, the outstanding value of domestic accounts receivable has grown significantly, thereby increasing market demand for factoring services, and creating significant future market development opportunities."
Tantech holds 100% of the equity interest in its subsidiary First International Commercial Factoring (Shenzhen) Co., LTD after previously acquiring its shareholders Shenzhen Shangdong Investment Co., Ltd. and China East Trade Co., Limited, as part of Tantech's industrial strategic transformation and business expansion. Through the acquisition Tantech successfully obtained the financial qualification of commercial factoring, and further extended its reach into the financial field, in-line with its strategic business transformation and long-term development targets.
The Company plans to actively engage in supply chain finance and accounts receivable factoring to businesses in the industries it operates and in related industries in order to effectively improve its supply chain by extending financing services, including comprehensive commercial factoring capabilities ranging from payment, settlement, financing and risk control, to financial coordination. In doing so, the Company will be providing much needed working capital injections to businesses, while further enhancing its own profitability and market influence. The Company also plans to work with medium and large-sized companies on the disposal of non-performing business assets.
About Tantech Holdings Ltd
For the past decade, Tantech has been a highly specialized high-tech enterprise producing, researching and developing bamboo charcoal-based products with an established domestic and international sales and distribution network. Since 2017, when the Company acquired 70% of Shangchi Automobile, a vehicle manufacturer based in Zhangjiagang City, Jiangsu Province, it has manufactured and sold vehicles. The Company established two new subsidiaries, Lishui Smart New Energy Automobile Co., Ltd. and Zhejiang Shangchi New Energy Automobile Co., Ltd., in November 2020, to produce and sell street sweepers and other electric vehicles. The Company is fully ISO 90000 and ISO 14000 certified and has received a number of national, provincial and local honors, awards and certifications for its products and scientific research efforts. The Company's subsidiary, First International Commercial Factoring (Shenzhen) Co., LTD, is engaged in commercial factoring for businesses in and related to its supply chain. For more information please visit: http://ir.tantech.cn.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the sales, plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulations, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by this cautionary statement and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
SOURCE Tantech Holdings Ltd.