U.S.-China Green Fund, an Innovative Private Equity Firm with a Focus on Green Investments, Announced that it has Closed a Transaction to Invest RMB 500 Million into Huitongda Network Co., Ltd. ("Huitongda") to Address Rural Sustainable Development and Poverty Alleviation through Private Equity Investments
BEIJING, CHINA / ACCESSWIRE / December 22, 2017 / U.S.-China Green Fund, an innovative private equity firm with a focus on green investments, announced that it has closed a transaction to invest RMB 500 million into Huitongda Network Co., Ltd. ("Huitongda") to address rural sustainable development and poverty alleviation through private equity investments.
Founded in 2010 in Nanjing, Huitongda began to develop its rural e-commerce network in 2012. Through its O2O platform, Huitongda provides franchise members with training tools, financing, supply chain management, and sales support to better serve their rural customers.
As a pioneer in supplying electronics and home appliances to rural markets, the founders of Huitongda, Chairman Jianguo Wang and CEO Xiuxian Xu were keenly aware of the vast market potential of small and medium-sized townships and villages in China. The company has a deep understanding of the local characteristics of and the pivotal role mom-and-pop shops serve as both the agents for bringing goods to the countryside and upstream distribution channels for selling agricultural products.
Powered by the latest e-commerce technologies and the founders' successful track record of building large-scale retail franchises, Huitongda developed a special new business model that has achieved great success. Now its network has reached over 78,000 mom-and-pop stores in 15,600 towns and villages across 18 provinces, serving nearly 50 million rural families with RMB 200 billion of GMV annually.
Dr. Bo Bai, CEO of the U.S.-China Green Fund, expressed his excitement and vision regarding this investment: "As a green private equity fund, we are pleased to become the green strategic investor into Huitongda to help transform it into a platform company to greenergize China's country side, to improve the sustainability of China's rural economy through both consumer service upgrades and environmental improvement, while also increasing farmers' income and alleviating poverty. Huitongda's innovative e-commerce business model and powerful network can be leveraged and enhanced to promote large-scale green product penetration and project execution for both green development and poverty alleviation in rural markets."
Chairman Wang noted that "green development and poverty alleviation are an important focus of Huitongda's future development. By empowering our tens of thousands of mom-and-pop shops, we are now promoting distributed solar systems for farmers' rooftops and selling electric light pickup trucks to replace air-polluting diesel trucks. We are glad to have U.S.-China Green Fund become our green strategic investor. Through the partnership, we will be able to introduce more green products and technologies from U.S., Europe and China that are suitable for China's rural markets. These products can also be commercialized through Huitongda's vast rural network. In addition, we will continue to drive our network of mom-and-pop stores to serve as a channel to market for farmers to sell their agricultural products directly to urban consumers, expanding market reach and reducing distribution costs, and address poverty alleviation with market forces."