Business
Tantech Subsidiary Wins RMB 50 Million Factoring Agreement
LISHUI, China, Nov. 26, 2021 /PRNewswire/ -- Tantech Holdings Ltd (NASDAQ: TANH) ("Tantech" or the "Company") today announced that its subsidiary, First
About this update from Tantech Holdings Ltd.
[{"type":"text","content":"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.\nThe 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.\nMr. 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.\"\nTantech 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.\nThe Company plans to actively enga...