- Fintech provider Peak Positioning Technologies (PKK) has signed an exclusive agreement with Beijing Youxiangtong Group (BYG)
- Under the agreement, the company will provide services to BYG subsidiary and electronics distributor, Beijing Dianjing Company (BDC)
- Specifically, Peak Positioning will provide its financing solutions to BDC’s 60,000 online retail clients
- The purchase order financing program will be offered through a joint venture company created between Peak Positioning and BYG
- Peak Positioning Technologies (PKK) is up 18.52 per cent and is currently trading at C$0.64 per share
Fintech provider Peak Positioning Technologies (PKK) has signed an exclusive agreement with Beijing Youxiangtong Group (BYG).
BYG is the parent company of Chinese wholesale electronics distributor, Beijing Dianjing Company (BDC). Under the agreement, Peak Positioning will provide its financing solutions to BDC and its 60,000 online retail clients.
BDC’s online retail clients sell products such as laptops, smartphones, and other consumer electronics on China’s top three e-commerce portals, Tmall, JD.com, and Pinduoduo. Every year, these retailers collectively sell about C$50 billion of consumer electronic products.
Peak Positioning’s commercial lending platform, Cubeler Lending Hub, will analyse the retailers’ sales and business performance data. This information will be processed to determine if the retailers qualify to have their purchase orders financed.
If eligible, BDC’s clients will be able to have up to 90 per cent of the price of the products they purchase from BDC financed.
The purchase order financing program will be offered through the creation of a joint venture company between Peak Positioning and BDC’s parent company, BYG. The company recently raised $500,000 for the express purpose of creating this joint venture.
Usually, Peak Positioning earns service fees equalling roughly one to three per cent of the credit amounts it helps to facilitate. In this case, the company is still working to estimate the number of clients and percentage of sales which can be expected to be financed through this agreement.
Hypothetically, if all 60,000 online retail clients financed the maximum amounts they are entitled, the company would generate up to $1.35 billion in annual revenue.
Peak Positioning’s CEO, Johnson Joseph, said that the company is proud of the strides it has made in the last eight to twelve months.
“The agreement announced today, however, may eclipse all that we’ve done over the past year and a half in terms of how dramatically it will affect not only the company’s bottom line, but also how quickly it will allow us to expand our Lending Hub ecosystem.
“This creates a path and a template for us to approach other distributors, or even the online e-commerce portals directly, to offer them our services.
“I want to commend our management team in China, headed by Liang Qiu, for their incredible work in getting this agreement in place and for continuing to recruit important strategic partners to support our vision of making Lending Hub the country’s pre-eminent commercial lending ecosystem,” he said.
Peak Positioning Technologies (PKK) is up 18.52 per cent, and trading for $0.64 per share, as of 9:46am EDT.
