SHENZHEN, China, Dec. 9, 2024
/PRNewswire/ -- Taoping Inc. (Nasdaq: TAOP, the "Company"), a
provider of innovative smart cloud platform services and solutions,
new media and artificial intelligence (AI) solutions, today
announced that it has signed a non-binding letter of intent to
acquire 100% of the equity of Shenzhen Yunti Internet of Things
Co., Ltd. ("Yunti"), a Chinese company based in Shenzhen, Guangdong
Province. Taoping's acquisition of Yunti, if consummated, is
expected to open new revenue growth opportunities for the Company,
while further consolidating and expanding the Company's market
share in the lucrative elevator equipment and service industry.
Under the letter of intent, Yunti's shareholders agree to
transfer their ownership of Yunti to the Company in exchange for
newly issued ordinary shareholders of the Company. The final
valuation and timeline of the acquisition will be determined based
on a mutually agreed upon independent third party's comprehensive
evaluation of Yunti. The parties expect to close and integrate the
acquisition over the next 12 months. The non-binding letter of
intent does not create an obligation on the part of either party to
consummate any transaction. The proposed transaction is
subject to a definitive agreement to be negotiated between the
parties, conditioned upon further financial and legal due diligence
and approval of the Company's Board of Directors, as well as other
customary closing conditions, such as any required regulatory
approvals. There is no assurance that any transaction will be
concluded.
Founded in 2016, Yunti is a privately held, Shenzhen-based company qualified to provide an
end to end Smart elevator solution, integrating sales,
installation, repair and maintenance. Yunti is known for developing
a robust SaaS platform, which effectively delivers innovative
services targeted at China's
installed base of an estimated more than 10 million elevators. With
a unique, full-scenario business model that combines a
customizable, feature rich SaaS platform, Yunti has rapidly grown
its customer base in providing full-scenario elevator services,
with a portfolio of innovative products specifically designed to
meet the needs of China's Smart
Elevator ecosystem. Core platforms include Yunti's SaaS-based
"Tishibao" elevator management Cloud service platform, and
"Tishibang", China's first private
market elevator Internet service platform. Through its SaaS
platform and business model of insurance plus professional
services, Yunti is able to capture revenue from both monitoring and
maintenance throughout the entire elevator operation process, while
being ideally positioned to promote the digital transformation of
traditional equipment operation and maintenance management, and
comprehensively improve operation and maintenance efficiency and
service quality.
According to the State Administration for Market Regulation, the
number of elevators in China was
expected to reach more than 10.6 million by the end of 2023. At the
same time, according to data from the China Elevator Industry
Business Yearbook, the market size of China's elevator equipment industry continues
to expand having exceeded 494.3 billion
RMB in 2023.
Mr. Jianghuai Lin, Chairman and CEO of Taoping, commented, "As
part of our active M&A process, we evaluated a series of
potential transactions, with a priority on long-term potential,
valuation, and alignment with building shareholder value. We are
excited about the proposed acquisition of Yunti, which aligns
strategically with our Smart City product portfolio, customer base,
and geographic footprint. Upon deal closure and integration, we
anticipate that this transaction will position our business to
expand into higher growth, more profitable segments in the huge
Chinese elevator equipment industry, with even more attractive
long-term demand catalysts. We believe this transaction would be
equally transformational for all shareholders, with extensive new
opportunities opened that would drive meaningful value
creation."
About Taoping Inc.
Taoping Inc. (Nasdaq: TAOP) has a long history of successfully
leveraging technology in the development of innovative solutions to
help customers in both the private and public sectors to more
effectively communicate and market to their desired targets. The
Company has built a far-reaching city partner ecosystem and
comprehensive portfolio of high-value, high-traffic areas for its
products, which are aligned together with Taoping's smart cloud
platform, cloud services and solutions, new media and artificial
intelligence. For more information about Taoping, please visit
http://en.taop.com. You can also follow us on X.
Safe Harbor Statement
This press release contains "forward-looking statements" that
involve substantial risks and uncertainties. All statements other
than statements of historical facts contained in this press
release, such as statements regarding our estimated future results
of operations and financial position, our strategy and plans, and
our objectives or goals, are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended
and Section 21E of the Securities Exchange Act of 1934, as amended.
We have attempted to identify forward-looking statements by
terminology including "anticipates," "believes," "can," "continue,"
"could," "estimates," "expects," "intends," "may," "plans,"
"potential," "predicts," "should," or "will" or the negative of
these terms or other comparable terminology. Our actual results may
differ materially or perhaps significantly from those discussed
herein, or implied by, these forward-looking statements. There are
a significant number of factors that could cause actual results to
differ materially from statements made in this press release,
including: our potential inability to achieve or sustain
profitability or reasonably predict our future results, the effects
of the global Covid-19 pandemic or other health crisis, the
emergence of additional competing technologies, changes in domestic
and foreign laws, regulations and taxes, uncertainties related to
China's legal system and economic,
political and social events in China, the volatility of the securities
markets; and other risks including, but not limited to, those that
we discussed or referred to in the Company's disclosure documents
filed with the U.S. Securities and Exchange Commission (the "SEC")
available on the SEC's website at www.sec.gov, including the
Company's most recent Annual Report on Form 20-F as well as in our
other reports filed or furnished from time to time with the SEC.
The forward-looking statements included in this press release are
made as of the date of this press release and the Company
undertakes no obligation to publicly update or revise any
forward-looking statements, other than as required by applicable
law.
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SOURCE Taoping Inc.