Nocera, Inc. Completes Strategic Acquisition, Partnering with Zhejiang Xinca Mutual Entertainment Culture Media to Cultivate the Global E-Commerce Market
Nocera, Inc. (NCRA) has acquired 100% equity interests of Xinca, a successful e-commerce company in China, through its subsidiary, Shanghai Nocera Culture Co., Ltd. The acquisition is valued at 1.8 million unregistered shares of common stock. Xinca's expertise in content creation and e-commerce on Douyin, a platform with a global user base of 1.5 billion people, will enable Nocera to introduce fish sales in China and replicate its success on TikTok in the United States.
The acquisition of Xinca by Nocera represents a strategic pivot that could potentially diversify the company's revenue streams and tap into the burgeoning e-commerce market in China. By leveraging Xinca's established presence on Douyin, Nocera is positioned to capitalize on the platform's vast user base and high engagement levels. This move could also signal a shift in the company's business model from purely aquaculture to a more integrated approach combining product and digital sales.
It is crucial to monitor the integration of Xinca's e-commerce model with Nocera's operations, as success in this domain relies on seamless synergy between content creation and product fulfillment. The ability to replicate Xinca's success on TikTok in the U.S. market will depend on navigating different consumer behaviors and regulatory environments. The long-term implications for Nocera include potential market expansion and brand recognition, but also the risk of diluting its core aquaculture brand if not executed carefully.
The transaction, involving the issuance of 1.8 million unregistered shares of common stock, signifies a non-cash acquisition that could be favorable in terms of preserving Nocera's cash reserves. However, it is imperative to evaluate the dilutive effect on current shareholders and the impact on earnings per share. The market will likely scrutinize the acquisition's contribution to revenue growth and margins, particularly given the competitive nature of the e-commerce space.
Investors should consider the valuation of Xinca implied by the share issuance and how it compares to industry benchmarks. The strategic rationale behind diversifying into e-commerce via a social media platform should be balanced against the operational risks and the potential for distraction from Nocera's core business competencies.
The strategic acquisition of Xinca by Nocera underscores the importance of content-driven e-commerce strategies in today's market. Xinca's success on Douyin can be attributed to its dynamic marketing and high e-commerce conversion rates, which are critical in the short-video format that dominates platforms like Douyin and TikTok. Nocera's plan to introduce fish sales on these platforms could disrupt traditional e-commerce models by leveraging influencer networks and user engagement to drive sales.
Understanding the nuances of content virality and influencer marketing will be key to Nocera's success. The company must also ensure that its product offerings align with the expectations of social media users, who tend to favor products that are not only high-quality but also align with the values and trends prevalent among the platform's user base. The replication of this model in the U.S. will require careful adaptation to cultural differences and consumer preferences.
02/06/2024 - 04:00 PM
TAIPEI, TAIWAN / ACCESSWIRE / February 6, 2024 / Nocera, Inc. (NASDAQ:NCRA) ("Nocera" or the "Company"), a fully integrated sustainable aquaculture company focused on the manufacturing and operation of land-based Recirculating Aquaculture Systems (RASs), today its acquisition, through its wholly-owned subsidiary, Shanghai Nocera Culture Co., Ltd., of 100% of the issued and outstanding equity interests of Zhejiang Xinca Mutual Entertainment Culture Media Co., LTD.( "Xinca"), a domestic funded limited liability company registered in China (PRC), using Variable Interest Entity agreements (VIE). This strategic acquisition marks a significant milestone for Nocera, positioning the Company for accelerated growth within the e-commerce market, commencing with the China market on the Douyin platform. The purchase price of the of equity interests of Xinca was 1.8 million unregistered shares of common stock of the Company. The acquisition closed on January 31, 2024.
Xinca has established a successful e-commerce model on Douyin, the prominent Chinese short-form video application and sibling platform to TikTok in the United States. Both Douyin and TikTok are subsidiaries of Beijing-based parent company ByteDance. Xinca has achieved remarkable success through its prowess in content creation, dynamic marketing strategies, and exceptional e‑commerce conversion rates. The company has amassed invaluable insights, resources, and data on user behavior, established prominent influencer networks, and executed highly efficient product sales strategies. Nocera is excited to leverage these assets, enabling the Company to introduce fish sales on Douyin in China, with plans to replicate this success on TikTok in the United States.
ByteDance's Douyin/TikTok platform boasts a global user base of 1.5 billion people, with projections suggesting it will reach 2 billion users by the end of 2024. These figures underscore Douyin/TikTok's substantial impact on the global social media landscape and its rapid ascent in the e-commerce sector.
Andy Jin, Chief Executive Officer of Nocera, expressed his enthusiasm for this transformative acquisition, stating, "This strategic partnership is poised to enhance Nocera's competitive advantage, particularly in the Douyin e-commerce sector in China. As the global e-commerce and content marketing landscape intensifies in competitiveness, the collaboration between Nocera and Xinca promises to usher in a new era in the short-video e-commerce domain. We believe that by harnessing Xinca's creative content and market insights, coupled with Nocera's expertise in aquaculture and fish sales, we will pioneer innovative advancements in the global e-commerce market."
Nocera, Inc. looks forward to delivering high-quality, sustainably farmed fish to consumers while continuing to drive innovation and growth in the ever-evolving e-commerce landscape.
About Nocera, Inc .
Nocera (NASDAQ: NCRA) is a fully integrated sustainable seafood company that provides land-based recirculation aquaculture systems for both fresh and saltwater fish and invests in fish farms by building high-tech RASs. The Company's main business operation consists of the design, development, and production of large-scale RASs fish tank systems, (aquaculture) for fish farms along with expert consulting, technology transfer, and aquaculture project management services to new and existing aquaculture facilities and operators. For more information, please visit the company's website at www.nocera.company .
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that are inherently subject to risks and uncertainties. Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should," "will" and similar expressions as they relate to Nocera are intended to identify such forward-looking statements. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in methods of marketing, delays in manufacturing or distribution, changes in customer order patterns, changes in customer offering mix, and various other factors beyond the Company's control. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and our subsequent Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov . The Company encourages you to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statements contained in this press release. As a result of these matters, changes in fact, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
Investor Contacts:Jh@hanoverintlinc.com
SOURCE: Nocera, Inc.
press release on accesswire.com
What company acquired Xinca?
Nocera, Inc. (NCRA) acquired Xinca.
What is the acquisition valued at?
The acquisition is valued at 1.8 million unregistered shares of common stock of Nocera, Inc. (NCRA).
What is the global user base of Douyin/TikTok?
Douyin/TikTok has a global user base of 1.5 billion people, projected to reach 2 billion users by the end of 2024.
What will Nocera do with Xinca's expertise?
Nocera plans to introduce fish sales in China and replicate its success on TikTok in the United States using Xinca's expertise in content creation and e-commerce.
