China Public Procurement Limited (the "Company" or “CPP”, HKEx stock code: 1094) is pleased to announce that, on May 12, Beijing Yian Tong Bao e-commerce Limited (“Yian Tong Bao”), which is the Company intends to acquire and is principally engaged in electronic platforms for clearing and settlement service, has entered into a tripartite cooperation framework agreement with Shanghai ChinaPay Electronic Payment Services Co., Ltd. and Yiwu China Commodities City Information and Technology Company Limited in relation to cross-border online settlement business.
As the announcement dated dec 21 2015, CPP intends to acquire Yian Tong Bao.
The cooperation is exclusive. Yian Tongbao as the official channel distributor and market developer of ChinaPay, has the exclusive right to provide settlement solutions regarding cross border payment in Renminbi and foreign currency to Yiwu China and its customers, as well as one of the cross-border e-commerce transaction platform of Yiwugou, a subsidiary of Zhejiang China.
The annual amount of Yiwu City’s export exceeds RMB 2 trillion. Currently, there are about 500 thousands commercial entities, of which more than 100 thousands are owned by foreign procurement companies requiring cross-border payment services. As one of the world’s largest small commodities distribution centre, there are sizable demand for procurement and cross-border payment services in Yiwu City. The agreement enables the three parties to provide cross-border payment services under the terms of service trade. It is a solution towards the bottleneck of cross-border payment issue in Yiwu city.