Cogobuy Group (“Cogobuy” or the “Company”, stock code: 400.HK), an e-commerce platform serving the electronics manufacturing industry in China, announced that the Company has gradually overcome the impact of its tightened credit facilities. Its direct sales business, which had reached a low point in the third quarter of 2017, has since gradually rebounded in the fourth quarter of 2017.
The Company has also accelerated the collection of outstanding loans from its IngFin Financing Services to raise its internal cash ratio. Cogobuy anticipates the second half of 2017 is still profitable, and the growth of its direct sales business in the coming year will depend on the recovery of bank credit lines.
The Company also adjusted its business focus by promoting a new “INGDAN.com Commercialization + IC Component Dual Business Model”. The commercialization of INGDAN.com’s projects has gradually become a major growth driver for the Company, adding significant growth to its new businesses including corporate services, technology transfers, and investment gains from potential projects.
Looking beyond the fourth quarter of 2017, the Company aims to further develop and promote INGDAN.com. With access to core AI technologies from well-known tech giants, INGDAN.com is targeting the traditional manufacturing technology upgrade market, and preparing for deeper collaboration with leading companies. During the second half of 2017, INGDAN.com entered a strategic partnership with Samsung Electronics Co., Ltd., to connect Samsung’s ARTIK™ IoT Platform with INGDAN.com’s users and supply chain ecosystem, helping customers capture opportunities in China’s Trillion-RMB IoT market.
Samsung ARTIK™ is the latest end-to-end integrated IoT solutions platform, and the partnership with Samsung ARTIK™ will strengthen INGDAN.com’s capacity to provide turn-key AI solutions for chips, software, cloud, and data services, and to assist companies in upgrading or developing AI-enabled products and services.
Mr. Jeffrey Kang, CEO of Cogobuy Group, said, “Although the growth in our direct sales business was lower than our original plan due to tightened bank facilities, our Company is moving in the right direction. We are gradually reducing our reliance on our traditional IC components business, transforming our corporate development strategy, and expanding revenues from corporate services and projects investment gains.
Additionally, INGDAN.com has incubated numerous projects in AI, intelligent hardware, and chips. For example, we have incubated a robotic business and brought it to commercialization, we expect to achieve monetization of this robotic business in the next few months. Looking ahead to 2018, our Group will be focusing on AI adoption and commercialization, and launching more projects in this area.”