CIMC TransPack Completes New Round of Financing to Build an Industry Leader

On August 29, CIMC published an announcement that CIMC TransPack Technology Co., Ltd. (“CIMC TransPack”), one of majority-owned subsidiaries of CIMC, continued to obtain a new round of investment of RMB220 million from investors such as the original strategic investor HSUM, and Yuanzhi Venture Capital and Yuanzhi Ruixin of Shenzhen Capital Group. After the completion of this round of financing, CIMC TransPack remains a majority-owned subsidiary of CIMC.

According to the announcement, the relevant investors make the new round of financing as they remain optimistic about the development prospects of CIMC TransPack. The valuation of the current round of financing for CIMC TransPack was revised upward to a certain extent from the valuation of the previous round of financing mainly due to the comprehensive considerations in respect to expansion in large customers, breakthroughs in new product development and solid operating data of CIMC TransPack.

New round of financing to accelerate service development and market expansion

The relevant person in charge of secretary office of CIMC said that this new round of financing reflects, to a large extent, the capital market’s affirmation of CIMC’s achievements in the development of transport technology, and also demonstrates that the capital market is more optimistic about the future development prospects of the reusable transport pack business.

The new round of financing will further enhance the core competitiveness of CIMC TransPack and increase its cash flow, thus better supporting efforts of CIMC TransPack to accelerate development of its service business and expand its market share, mitigating the capital pressure arising from its continued investment in operational assets in the future and leveraging on the superior resources of strategic investors to develop the reusable smart transport pack business.

For CIMC (being the parent company and controlling shareholder of CIMC TransPack), the completion of the new round of financing will further support the transformation of CIMC from manufacturing to “manufacturing + service” business, and promote the strategic cooperation in various industries between the Shenzhen state-owned enterprises and CIMC in a comprehensive and in-depth manner, which is expected to deepen the synergy between CIMC TransPack and the shareholders, thus creating greater values.

Seizing market opportunities to build an industry leader

As an operating entity of CIMC recycling transport pack business unit, CIMC TransPack focuses on providing customers with comprehensive solutions for returnable packaging to replace disposable packaging, thus contributing to carbon neutrality. In 2020, CIMC integrated its related small and medium-sized transport pack enterprises and established the reusable transport pack business unit, which was later officially named CIMC TransPack Co. Ltd.. With a current focus on the auto parts, new energy, liquid chemicals/food and rubber industries, CIMC TransPack provides services covering R&D and manufacturing, circular operation services and other one-stop integrated solutions in manufacturing and service sectors. It is making efforts to increase share of revenue from the service sector.

Reusable CIMC transport packs for mechanized transport

In recent years, CIMC TransPack has been improving its business model and operational mechanism, bringing about rapid expansion of its scale, as well as rapid growth in both operating revenue and profit. The company has been experiencing rapid growth in its operations over the past two years, with significant breakthroughs in the development of new products, acquisition of new customers or expansion into new industries.

After the financing, CIMC TransPack will continue to focus on its advantageous business, while giving full play to its advantages in technological innovation and resources of shareholders. It will further focus on the development of its main businesses by seizing the opportunities arising from the urgent demand of high-value industrial products such as auto parts, new energy, liquid chemicals/food and rubber for high-quality transport packaging. CIMC TransPack will provide better and more professional services in a customer-centric manner with a view to developing itself into a leading enterprise in the industry.