Chinese express delivery company Yunda published an announcement, stating that the company would subscribe non-public offering of Deppon as a strategic investor via its fully-owned subsidiary Ningbo Fushan.
It is said that Ningbo Fushan plans to use its own fund and raised fund to subscribe about 66.74 million shares of Deppon for CNY614 million. On the completion of the transaction, the company will hold about a 6.5% stake of Deppon.
According to an announcement published by Deppon, the capital raised from the non-public offering will be used to upgrade its intelligent equipment for transfer center and build IT information system.
Deppon's financial statistics for 2019 showed that the company's annual operating revenue was CNY25.922 billion, a year-on-year increase of 12.58%; and its net profit attributable to shareholders of listed company was CNY324 million, a year-on-year decrease of 53.82%. During the first quarter of 2020, Deppon's operating revenue decreased by 17.50% year-on-year; while its net profit increased by 113.49% year-on-year to CNY155 million.
Meanwhile, Yunda's financial report showed that the company completed 10.03 billion deliveries in 2019, a year-on-year increase of 43.59%. Its delivery market share reached 15.79%, ranking the second in China.