HANGZHOU, China, April 21, 2014 /PRNewswire / -- Yosen Group, Inc. (stock symbol: YOSN) ("Yosen", or "the Company") today announced that it has signed an agreement (the "Agreement") with Yiwu China Commodity City Information Technology Ltd. (CCCIT), a subsidiary of China Commodity City Group Ltd (CCC Group). Yosen Group and CCCIT will cooperate exclusively in cross border trade, e-commerce, warehousing, and logistics in four major states (New York, New Jersey, Connecticut, and Pennsylvania).
According to the Agreement, Yosen will be CCCIT's exclusive partner in the NY-NJ-CT-PA area for the next five (5) years. Both parties will jointly develop an independent website to supplement China Commodity City's official e-commerce platform yiwugou.com. Yosen will be fully responsible for the U.S. online platform operation and order processing, while CCCIT will provide technical assistance, data support, online and offline marketing, website traffic referral, and free transit warehousing. The domain name yiwuny.com will become an intellectual property owned by Yosen. All profits from cross border trade and the U.S. e-commerce platform will belong to Yosen only. In addition, CCC Group plans to establish a central warehouse and products exhibition center in the Greater New York area to service its 70,000 merchants and 210,000 suppliers. Yosen will be involved for this plan's implementation in New York as well as the logistics and distribution management. For that, Yosen will enjoy sales profit sharing at a later stage of operation. When the five-year Agreement expires, Yosen has the first right to renew.
Yiwu China Commodity City Information Technology Ltd. is a subsidiary of China Commodity City Group Ltd. (CCC Group). Founded in 2002 with registered capital of RMB 52 million, it is mainly engaged in establishing and maintaining CCC Group's official e-commerce website yiwugou.com. The yiwugou.com platform connects each of the 70,000 China Commodity City merchants online and offline. By using its proprietary 360 degree virtual tour technology, yiwugou.com provides buyers with the experience of exploring the Yiwu Commodity City nearly in person. Through the yiwugou.com platform, merchants can demonstrate their products, manage online stores and complete transactions. Buyers, on the other hand, can easily view stores and products, place orders, and enjoy all the convenience and comfort that yiwugou.com can provide.
Located in Yiwu City, Central Zhejiang Province, China Commodity City is China's famous small commodity wholesale market established in 1982. Occupying a total operating area of over 50 million square feet with approximately 70,000 merchants of 1.7 million types of commodities, China Commodity City distributes almost every kind of daily essential products. For twenty-two (22) years consecutively, it has been ranked No. 1 among China's major wholesale markets. Further, it was honored by the United Nations, the World Bank and Morgan Stanley, among other world authorities, as the "largest small commodity wholesale market in the world." China Commodity City is also China's largest export base for small commodities with products exporting 570,000 containers annually to 219 countries and regions.
Yosen's CEO Mr. Zhenggang Wang commented, "We are very proud of being able to sign this exclusive partnership with CCC Group in the Greater New York area. CCC Group brings us priceless resources. Their investment in yiwugou.com alone has reached hundreds of millions RMB. Based on the Agreement, Yosen will benefit from CCC Group's voluminous information on hundreds of thousands merchants and suppliers, as well as their marketing support and traffic referral. Furthermore, Yosen will enjoy all the subsequent profits from the cooperation and the New York e-commerce platform. With the many favorable terms and free support from CCC Group, we are convinced that this cooperation will generate significant value for Yosen's shareholders."
"As the first company in Yiwu that went public in the United States, Yosen was privileged to have received much attention from the local government as well as state-owned companies. We decided to start international trade and wholesale business end of last year, and we have made breakthrough within a very short period of time in New York. This also raised a great deal of attention from CCC Group. The exclusive agreement has far exceeded our team's original plan and expectation," added Mr. Wang. "Yosen was honored to be invited to China's first national level e-commerce forum two weeks ago. We had the opportunity to discuss with many leading internet companies how to integrate efficiently offline resources and online platforms. We will take advantage of our yiwuny.com opportunity to cooperate with professional companies by leveraging cutting edge big data technology and operating model in building our platform. We will provide details on the progress over the next few months gradually."
About China Commodity City Group Ltd. (CCC Group)
China Commodity City Group Ltd. (China Commodity City Group, or CCC Group), established in 1993, is a state controlled enterprise. CCC Group became a listed company on Shanghai Stock Exchange in 2002. As of end of 2012, CCC Group had over 5000 employees, and total assets of RMB 18.281 billion.
About Yosen Group, Inc.
Yosen Group, Inc. ("Yosen Group", or "Yosen") was founded in Yiwu City, Zhejiang Province, in 1997. Yosen is a leading retailer of 3C merchandise (Computers, Communication products and Consumer electronics) in Eastern China. The Company partners with China's three dominant telecommunication operators including China Telecom, China Mobile, and China Unicom, and operates 3C specialty stores within mass merchandisers at prime locations. Yosen distributes the best-selling products of Apple, Samsung, among others. Yosen Group, though its corporate headquarters in China and its wholly-owned U.S. subsidiary, is committed to building cross-border sales channels for bringing the world's best consumer products to China and, simultaneously, introducing China's most competitive products to the overseas markets. Yosen Group is China Commodity City Group's exclusive partnerin the Greater New York area. The Company operates under the "Yosen" and "Yong Xin" brand names.
For more information, visit http://www.yosn.com/.
Safe Harbor Statement
Certain statements in this press release, constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding the Company's future performance. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the periodic reports that are filed with the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. The Company undertakes no duty to update these forward-looking statements except as required by law.
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