Addentax Group Corp. and Dezhong Xinghui Collaborate to Develop AI Logistic System, Facilitating Breakthroughs in Logistics Delivery
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The strategic cooperation between Addentax Group Corp. and Dezhong Xinghui Information Technology Co., Ltd. represents a significant move towards integrating AI into logistics, which is a growing trend within the supply chain industry. This partnership is likely to enhance Addentax's operational efficiency and competitive edge in the garment manufacturing and logistics sectors.
From a market perspective, the investment in AI and the development of a sophisticated logistics system could lead to cost reductions and improved service quality. These advancements may result in increased market share and customer satisfaction, potentially impacting Addentax's revenue growth and profitability. Investors may view this as a positive development, as it aligns with the broader industry's push towards digitization and automation.
Implementing an AI-driven logistics system can drastically transform supply chain dynamics. The system's ability to optimize vehicle dispatching and monitor inventory in real-time addresses key pain points in logistics, such as underutilization of assets and inventory inaccuracies. Intelligent sorting and delivery can also enhance the speed and reliability of Addentax's service offerings.
Moreover, the collaboration with Dezhong Xinghui, which specializes in digital retail solutions, suggests a strategic focus on the food industry and fresh produce. This sector is particularly sensitive to logistics efficiency due to perishability concerns. The potential long-term benefits include not only cost savings but also sustainability improvements through reduced waste and better resource management.
The annual investment of up to USD $5 million in software technology by Dezhong Xinghui underscores the substantial financial commitment towards innovation in the digital retail space. For Addentax, aligning with a tech-savvy partner could accelerate their technology adoption curve and enable them to leapfrog competitors who are slower to embrace digital transformation.
Investors should note that while the initial outlay for technology can be significant, the long-term ROI from AI integration in logistics could be substantial. Enhanced data analytics capabilities and improved operational efficiencies are likely to drive down costs over time. However, it is important to monitor the execution of this strategy and the actual performance metrics post-implementation to assess the true impact on Addentax's financials.
The collaboration between Addentax and Dezhong Xinghui is focused on the development of an artificial intelligence ("AI") logistics system. This system aims to optimize vehicle dispatching, monitor inventory in real-time, enable intelligent sorting and delivery, and operate seamlessly. By automating tasks, this initiative significantly reduces labor costs and errors, ultimately enhancing efficiency and quality across logistics operations. Overall, the AI logistics system's optimization functionalities cover all aspects of logistics, promising breakthroughs in delivery services within their respective logistic communities.
Dezhong Xinghui, through its platform Qilin XianPin, will play a crucial role in the collaboration by providing expertise and resources in software technology and digital retail solutions. Qilin XianPin is a platform specializing in providing digital retail solutions for fresh produce, food industry enterprises, and retailers. With an annual investment of up to USD
Conversely, Addentax brings its professional expertise in logistics services and extensive network to support Dezhong Xinghui. With logistics services covering 11 provinces and 3 municipalities, spanning over 86 cities in mainland
"We are enthusiastic about embarking on this strategic partnership with Dezhong Xinghui. Together, we are committed to leveraging our combined expertise to revolutionize the logistics industry and drive innovations. We will harness our collective strengths and shared vision to transform traditional logistics practices through technological advancements" stated Mr. Hong Zhida, Chairman and CEO of Addentax.
About Addentax Group Corp. Corp.
Addentax Group Corp. Corp. is an integrated service provider specializing in garment manufacturing, logistics services, and property management and subleasing. For more information about the Company, please visit the website: https://www.addentax.com/.
Caution Concerning Forward Looking Statements
All statements other than statements of historical fact in this announcement are forward-looking statements in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions are intended to identify such forward-looking statements. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to consider risk factors, including those described in the Company's filings with the SEC, that may affect the Company's future results. All forward-looking statements attributable to the Company and its subsidiaries or persons acting on their behalf are expressly qualified in their entirety by these risk factors. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. These forward-looking statements are based on information currently available to Addentax and its current plans or expectations and are subject to a number of known and unknown uncertainties, risks and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These and other important factors are described in detail in the "Risk Factors" section of Addentax's Annual Report on Form 10-K for the year ended March 31, 2023. Although we believe the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.
Company Contact:
Public Relations Contact:
Addentax Group Corp. Corp.
Phone: + (86) 755 86961 405
simon.ng@zgyingxi.com
Investor Relations Contact:
Sherry Zheng
Weitian Group LLC
1-718-213-7386
shunyu.zheng@weitian-ir.com
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SOURCE Addentax Group Corp.
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