TD Holdings enters into $165M procurement agency agreement

TD Holdings’ wholly-owned subsidiary Shenzhen Qianhai Baiyu, an integrated service provider specializing in commodity supply chain, has entered into a procurement agency agreement with Shenzhen Jintongyuan Energy for the strategic framework of procuring cobalt materials, the battery energy storage raw materials. The total procurement value is set at RMB1.2B, approximately $165M. This strategic move is expected to diversify the company’s service portfolio by expanding the range of raw material categories and increase the Company’s presence in the renewable energy sector. During the 12-month period, Jintongyuan will commission Baiyu to purchase cobalt materials with a monthly procurement quantity of RMB100M, approximately $14M. Jintongyuan will pay Baiyu a 20% deposit within a day of Baiyu’s acceptance of the commission. Baiyu will also receive agency service fee and fee for fund occupation from Jintongyuan.