Shares of Secoo Holding Limited (Nasdaq: SECO) were up 7.84% at $0.30 at the time of our last check in pre-market trading due to the company’s recent entry into a partnership agreement.
Which contract has SECO signed?
Secoo (SECO) has revealed that it has concluded a profound partnership with Jinan Shanzaicheng Development Co., Ltd., a division of Shandong Mingshui Guokai Development Group Co., Ltd. The supply chain for luxury products, international trade, and the expansion of the Jinan and Shandong regional markets will all get investment from both parties to work together to operate and upgrade physical stores’ consumption in order to advance the industry and produce outcomes that benefit both parties. Shanzaicheng anticipates investing around $500 million in this partnership to facilitate supply chain collaboration between the two parties.
A similar action was taken by SECO:
Secoo recently formed an extensive strategic partnership with Aladdin Legend Technology Co., Ltd., and will strategically collaborate with Secoo Group in three stages with an investment of up to 1.3 billion RMB. Aladdin Technology Group has made a commitment to funding and growing cutting-edge companies in the domains of local commerce and industrial internet. Together, SECO and Alladin Technology will examine business opportunities in high-end retail and value-added services while also supporting a rapidly expanding portfolio of domestic Chinese brands.
Aladdin Technology will contribute its capital, talent, and technological prowess, and SECO will use its resources and in-depth knowledge of the high-end fashion supply chain and sales channels. Three components make up the comprehensive strategic partnership between Aladdin Technology Group and Secoo. One of them is the creation of the “Secoo China Club,” in which Aladdin Technology Group will invest up to 100 million RMB.
Together with Secoo (SECO), it will lay out the high-end consumption circle and jointly promote the sale of used luxury products. Additionally, the two sides will work together to support the creation of the “China Department Store Home” public circle. Empowering the local economy will aid regional businesses in creating worldwide brands for boutique consumption and growing their impact internationally.
How will SECO put the collaboration further into practice?
The Aladdin Technology Group will engage in extensive collaboration by subscribing for the primary shares of Secoo (SECO), a publicly traded company, and making a strategic investment of up to 200 million RMB. Alladin Technology will work with SECO and go abroad to promote service innovation and improvement in the global luxury business, with a budget of up to 1 billion RMB. The above three sections’ precise cooperation and transactional content must be agreed upon by the two parties before they individually sign the necessary agreements.