CIFS Stock Jumps 13% on Partnership With China's Largest Supplier of Building Materials
Shares in the Beijing FinTech company climbed nearly 13 percent Thursday to $11.20 per share.
Shares in China Internet Nationwide Financial Services Inc. (Nasdaq: CIFS) jumped nearly 13 percent Thursday after the FinTech company announced a revolving factoring credit facility agreement with an affiliate of China's largest supplier of building materials, China National Building Materials & Equipment Import and Export Corp. (CNBM).
Under the one-year agreement, a subsidiary of CNBM (HKEX: 3323), CNBM Technology Corp. Ltd., would receive a 100 million yuan ($15 million) revolving factoring credit line from CIFS.
The news sent the stock of CIFS to $11.20 per American depositary share, up $1.24 on the day.
Shares in CIFS climbed nearly 13 percent Thursday to $11.20 per ADS.
(Source: Thomson Reuters Eikon)
"The agreement with CNBMTC marks the expansion of our factoring services beyond the healthcare/pharmaceutical segment," China Internet's chairman and chief executive officer, Jianxin Lin, said in a statement Thursday.
"Thus far this year, we have signed several factoring credit facilities totaling over RMB 500 million (~ $75 million). Our factoring business is expected to generate approximately 25% of total revenue for CIFS in 2018 and will contribute significantly to our financial performance going forward," Lin added.
The rebound in the company's stock, however, has yet to overcome the decline it's suffered since short-seller Muddy Waters Capital LLC reminded shareholders a few months ago that it found CIFS to be a "complete fraud, total zero" in its December 2017 report. The Beijing company's stock has fallen roughly two-thirds from April, when it was trading at more than $30 per share.
The company has denied all the short-seller's allegations.
CNBM Technology serves clients in government, finance, internet, education, manufacturing, energy, transportation, and other segments by providing business solutions.