Corporate News Blog - Shineco Signs Agreement to Market Authorized Products of Daiso on JD.com
LONDON, UK / ACCESSWIRE / October 31, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Shineco, Inc. (NASDAQ: TYHT), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=TYHT. The Company, which is a leading producer and distributor of Chinese herbal medicines, organic agricultural products, specialized textiles, and other health and well-being focused plant-based products in China, announced on October 27, 2017, that it has acquired contractual rights to distribute branded products of Daiso Industries Co. Ltd ("Daiso") on JD.com, Inc. (NASDAQ: JD), the largest ecommerce company and retailer in China. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Daiso is a large franchise of 100-yen shops founded in Japan. It develops and sells dining, kitchen, living, food, household, and home decorating products as well as accessories, stationery, toys, and hardware. As per the agreement, Shineco has got the distribution rights for its subsidiary Tianjin Tajit E-Commerce Ltd.
Details About the Contractual Agreement
The agreement authorizes Shineco to distribute Daiso's branded products and leverage its brand name in China through Tianjin Tajit E-Commerce Ltd.
The cooperation between Shineco and JD.com comprises various business initiatives, and also covers the broad spectrum of online retail.
Through this agreement, Shineco would be able to access JD.com's significant online customer base to enhance its business pursuit in China.
On the other hand, JD.com would get to capitalize on Shineco's business expertise. In fact, Shineco would serve as JD.com's authorized vendor for providing its customers access to a wide range of Daiso's products.
How Would the Agreement Benefit Shineco?
As a part of this agreement, JD.com and Shineco would join forces to promote innovation of online retail business model, which would help in enhancing Shineco's brand awareness. It would also result in improved marketing and continued growth for the Company.
Mr. Yuying Zhang, Chairman and Chief Executive Officer at Shineco, stated that he believes teaming up with China's ecommerce giant JD.com and Japan's retail giant Daiso would enhance Shineco's business by extending the potential market. He noted that the large online retail channel presence of JD.com would help market and distribute Daiso's products in a more efficient and economical manner. Thus, it would help Shineco meet the growing consumer demand for Daiso's products in China. Moreover, this move would eventually drive Shineco's expansion in ecommerce and build up its brand awareness.
Driven by Dynamic Market Forces
Mr. Yuying Zhang also said that market globalization and digital transformation are constantly challenging the traditional business concept. Thus, to stay up-to-date in the market, businesses need to develop faster and in a more flexible way. Marketing and distribution of Daiso products through JD.com implies an important step in this transformation for Shineco. Through this agreement, Daiso would benefit more than 20 million families in China.
This agreement would enable Shinecoto to move ahead with more focus on innovation and development in order to meet the changing customer needs in China. In fact, it is anticipated that this aspect of Shineco's business would attain an annual growth rate of 20%, subject to contract renewal.
Looking forward, Mr. Yuying Zhang aims to offer Chinese customers with remarkable Daiso products which were not previously available in China.
Last Close Stock Review
On Monday, October 30, 2017, the stock closed the trading session at $3.52, falling 3.30% from its previous closing price of $3.64. A total volume of 209.71 thousand shares have exchanged hands, which was higher than the 3-month average volume of 79.62 thousand shares. Shineco's stock price skyrocketed 35.91% in the last one month and 70.87% in the past three months. The stock is trading at a PE ratio of 8.63 and currently has a market cap of $56.57 million.
On Monday, October 30, 2017, the stock closed the trading session at $37.42, slightly rising 0.16% from its previous closing price of $37.36. A total volume of 15.63 million shares have exchanged hands, which was higher than the 3-month average volume of 14.50 million shares. JD.com's stock price soared 5.56% in the past six months and 44.48% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have skyrocketed 47.09%. At Monday's closing price, the stock's net capitalization stands at $52.48 billion.
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