NF Energy Saving Corp (NASDAQ: BIMI) is making its way for the top in the market this morning, trading on gains of more than 26% early on. The gains come after the company announced that it has entered into a new agreement. Here’s what’s going on:
BIMI Stock Heads For The Top On New Agreement
In a press release issued early this morning, NF Energy Saving said that it has entered into a strategic partnership agreement with Chongquing Shude Pharmaceutical Co. The two companies will work to build a joint membership system with a goa of driving revenue growth in Southwest Chin.
Chongqing Shude Pharmaceutical was founded in 1996. Today, the company works with more than 100 pharmaceutical companies as pharmaceuticals distributors. The company’s distribution channels include more than 3,000 pharmacies, 3,000 clinics, and 50 private and public hospitals throughout China. Moreover, in the past 3 years, the company has maintained a growth rate of more than 10%.
According to the terms of the agreement, the two companies will focus on better engaging customers on both sides. BIMI will develop a joint membership database that will better analyze and visualize data. Chongqing Shude will use its distribution channels to promote membership cards with a goal of accumulating 300,000 members by or before October 31, 2020.
In a statement, Mr. Tiewei Song, CEO and President at BIMI, had the following to offer:
We are pleased to leverage our advanced data management technology to build a joint membership database with Chongqing Shude. We believe that the joint membership system can lay a solid foundation for our business development in Southwest China, creating cloud and machine learning-driven customer experiences, and gaining a competitive advantage in the pharmaceutical retail industry.
Why Investors Are So Excited
Ultimately, there are several reasons for investors to be excited here. So, the gains of more than 25% come as no surprise. Here’s why investors are pushing NF Energy Saving stock to the top:
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