Baiwang forms enterprise credit technology joint venture

Digital invoice and tax services provider Baiwang Co. Ltd. (6657.HK) said on Monday it has agreed to form a joint venture engaged in enterprise credit technology and services with three other partners.

The venture will have registered capital of 15 million yuan ($2.23 million), with Baiwang contributing 3 million yuan for a 20% stake. Qichacha Technology will provide 7.65 million yuan for 51% of the venture, while Yancheng Hongqiao and Suzhou Baisheng will hold 13.3% and 15.7%, respectively.

The venture, to be based in Shanghai or Suzhou, will initially engage in a wide range of data-and AI-related services, including data processing and storage, as well as AI application software development.

Baiwang’s revenue fell 14.4% year-on-year to 348 million yuan in the first half of this year. It reported a net loss of 43.8 million yuan for the six-month period, reversing a profit of 3.6 million yuan in the year-ago period.

Baiwang’s stock opened flat on Tuesday after the announcement, but then moved higher during the morning to close up 7.6% at HK$12.54 by the midday break. The stock is down 37.3% this year.

By Doug Young

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