BGM Completes Acquisition of YX to Advance AI-Powered Intelligent Platform

Rhea-AI Summary

BGM Group (NASDAQ: BGM) has completed its acquisition of YX Management Company, an intelligent mobility technology platform, on April 25, 2025. The transaction, valued at US$95.0 million, was executed through the issuance of 47.5 million Class A ordinary shares to YX's shareholders, who now own 32.6% of BGM's equity interests and 2.2% of total voting power.

This strategic acquisition enhances BGM's AI-driven transformation, strengthening its capabilities in large-scale operations, digital infrastructure, and technology commercialization. YX's expertise in business model optimization and cross-industry resource integration will support BGM's intelligent platform development across insurance, mobility, and digital services sectors.

Positive

• Strategic acquisition valued at US$95.0 million strengthens AI capabilities
• Enhances technological expertise in intelligent mobility and operations
• Expands business portfolio across insurance, mobility, and digital services

Negative

• 32.6% equity dilution for existing shareholders
• Significant integration challenges may arise from merging operations

CHENGDU, China, April 28, 2025 /PRNewswire/ -- BGM Group Ltd. (NASDAQ: BGM) (the "Company" or BGM)  today announced the completion of its acquisition of YX Management Company Ltd. ("YX"), an leading intelligent mobility technology platform, on April 25, 2025. As previously disclosed, BGM acquired 100% of YX by issuing 47.5 million Class A ordinary shares to YX's existing shareholders, representing a valuation of US$95.0 million. Upon completion of the acquisition, YX's shareholders collectively own approximately 32.6% of BGM's equity interests and approximately 2.2% of the total voting power.

This acquisition represents a significant step in BGM's AI-driven transformation, enhancing its capabilities in large-scale operations, digital infrastructure, and commercializing cutting-edge technologies. YX's expertise in business model optimization, rapid technology iteration, and cross-industry resource integration will strengthen BGM's intelligent platform. With the completion of this acquisition, BGM will further accelerate the deep integration of AI into its core businesses across intelligent insurance, intelligent mobility, and digital services, continuously expanding the scope and commercial potential of its intelligent platform.

Mr. Chen Xin, Chief Executive Officer of BGM, stated:"The successful completion of this transaction marks an important milestone in our AI strategy. By integrating YX's technological expertise and industry resources, we will further accelerate the application of AI across key sectors such as insurance and mobility, advancing our core businesses toward an AI Agent-driven model. We believe AI-powered innovation and strategic execution will fuel BGM's long-term growth, delivering sustained value to shareholders, customers, and partners."

About BGM Group Ltd.

BGM Group Ltd. has a strategic focus on the technology fields of AI application, intelligent robots, algorithmic computing power, cloud computing, and biopharmaceuticals.

In terms of AI application implementation, the group relies on advanced analytics and AI Agent technology, and utilizes the two platforms of Du Xiao Bao and Bao Wang to provide comprehensive and professional AI solutions and intelligent robot services for insurance companies, insurance brokers, and consumers. Its services cover multiple key scenarios such as sales and marketing, underwriting assessment, claims processing, and customer service. The group is capable of analyzing consumer data, building consumer profiles, accurately predicting insurance needs, and providing highly customized services for consumers.

In the field of biopharmaceuticals, the group's biopharmaceutical division mainly produces oxytetracycline API, crude heparin sodium, and licorice preparations, which are widely supplied to the global animal husbandry, pharmaceutical, and drug retail markets. The group deeply integrates AI-assisted decision-making into every link of production and manufacturing, achieving supply chain optimization, process efficiency improvement, and market trend prediction. This provides scientific decision-making basis for the management and offers high-quality products and precise services for consumers.

Forward-looking Statements

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

For investor and media inquiries, please contact:

info@qiliancorp.com

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SOURCE BGM Group Ltd

FAQ

What is the value of BGM's acquisition of YX Management Company?

BGM acquired YX Management Company for US$95.0 million through the issuance of 47.5 million Class A ordinary shares.

How much equity stake do YX shareholders now own in BGM after the acquisition?

YX shareholders now own 32.6% of BGM's equity interests and approximately 2.2% of the total voting power.

What are the main benefits of BGM's acquisition of YX?

The acquisition enhances BGM's AI-driven transformation, strengthening capabilities in operations, digital infrastructure, and technology commercialization across insurance, mobility, and digital services sectors.

When did BGM complete the acquisition of YX Management Company?

BGM completed the acquisition of YX Management Company on April 25, 2025.

How will the YX acquisition impact BGM's business strategy?

The acquisition will accelerate BGM's AI integration across core businesses, advancing toward an AI Agent-driven model in insurance and mobility sectors.