TD Holdings, Inc. (Nasdaq: GLG) (the "Company"), a commodities trading service provider in China, today announced that the Company has entered into a strategic cooperation agreement (the "Agreement") on August 31, 2021 with Jinyibao International Technology Company Limited ("JIT"), a technology company engaged in global gold spot trading business. The Agreement shall be in effect until August 31, 2023.
Pursuant to the Agreement, JIT plans to reach its goal of US$3 billion in gross merchandise volume ("GMV") from global gold spot trading within three years and its target markets include but are not limited to China, India, Southeast Asia, the Middle East, Europe and North America. The Company agrees to tailor a supply chain service plan for JIT and provide supporting services along the supply chain according to JIT's needs, such as supply chain procurement services and sales, inventory pledge financing, accounts receivable management, factoring, financial support, and leasing.
According to the "China Gold Yearbook 2021" released by the China Gold Association, China's gold production in 2020 ranked first in the world. The total transaction volume of China's gold market stood at about 95,500 tons, and the gold consumption reached 820.98 tons. India's gold consumption is second only to China as the country consumed 544.6 tons of gold in 2019. The Company will mainly focus on the markets of China, India, and the surrounding regions, and plans to expand its global gold spot trading business there.
Ms. Renmei Ouyang, the Chief Executive Officer of the Company, commented, "Cooperating with JIT to enter the global gold spot trading market is of great strategic significance for the Company's long-term development. This move enriches the Company's commodity trading platforms, expands the scale of the platforms, and opens up a new profit growth point for the Company."