Nisun International Announces Major Growth Milestone with ZTO Yunpei Partnership

Rhea-AI Summary

Nisun International (NISN) has announced a significant partnership milestone with ZTO Yunpei, a subsidiary of ZTO Express. The companies have signed a purchase agreement for egg supply, resulting in sales exceeding 500 million RMB (approximately 68.7 million USD) to date. Nisun International, capable of supplying over 20 million eggs daily, has accumulated egg sales of over 5 billion RMB (approximately 687.9 million USD).

This strategic partnership leverages ZTO Yunpei's extensive network and logistics capabilities to expand Nisun's reach in China's thriving egg market. The market is projected to reach 10.32 billion kg by 2029, with an expected revenue of US$22.50 billion in 2024. This collaboration is poised to drive significant growth for both companies, capitalizing on the increasing demand for eggs in China.

Positive

• Partnership with ZTO Yunpei resulted in sales exceeding 500 million RMB (68.7 million USD)
• Nisun International's daily egg supply capacity exceeds 20 million
• Accumulated egg sales have reached over 5 billion RMB (687.9 million USD)
• Strategic partnership leverages ZTO Yunpei's extensive network and logistics capabilities
• China's egg market expected to reach 10.32 billion kg by 2029, with 8.8% volume growth in 2025
• Projected revenue of US$22.50 billion for the egg market in China in 2024

Negative

• None.

Insights

Financial Analyst

Nisun International's partnership with ZTO Yunpei represents a substantial growth opportunity. The purchase agreement, resulting in sales over 500 million RMB (68.7 million USD) to date, is a clear indicator of significant revenue generation. This partnership leverages ZTO Yunpei's logistics network, which should enhance Nisun's distribution efficiency and market penetration. Investors should note the company's capability to supply over 20 million eggs daily and its accumulated sales reaching 5 billion RMB (687.9 million USD). This positions Nisun International strongly in the Chinese egg market, which is projected to reach 22.50 billion USD in revenue in 2024.

Short-term, the agreement can be expected to increase Nisun’s quarterly revenues and possibly improve its stock liquidity. Long-term, the expanding market and Nisun's strong positioning could result in sustained revenue growth and shareholder value appreciation.

Market Research Analyst

The strategic partnership with ZTO Yunpei is a smart move for Nisun International. China's egg market is poised for significant growth, with projections indicating a volume growth of 8.8% in 2025 and total market revenue reaching 22.50 billion USD in 2024. Nisun International's strong production capability and extensive sales history place it in an advantageous position to capitalize on this growth. ZTO Yunpei's robust logistics network will further enhance Nisun's ability to meet increasing demand.

For investors, this partnership signifies a potential uplift in Nisun's market share and profitability. The collaboration not only solidifies Nisun's market presence but also underscores the company’s strategic foresight in leveraging logistics synergies for market expansion.

Supply Chain Expert

The deal with ZTO Yunpei highlights a critical aspect often overlooked: supply chain efficiency. By partnering with ZTO Yunpei, Nisun International can streamline its distribution process and reduce logistical bottlenecks. ZTO Yunpei's comprehensive network ensures timely delivery, which is important in the perishable goods market like eggs. This efficiency will likely lead to reduced operational costs and enhanced customer satisfaction, important for maintaining competitive advantage in a growing market.

From a supply chain perspective, this partnership is likely to enhance inventory turnover rates and reduce lead times, resulting in better financial performance for Nisun International. It's a strategic move that optimizes both companies' strengths to capture a larger market share more effectively.

ZTO Yunpei Signs Purchase Agreement with Nisun International, Driving Significant Expansion in China's Egg Market

SHANGHAI, July 23, 2024 /PRNewswire/ -- Nisun International Enterprise Development Group Co., Ltd ("Nisun International" or the "Company") (Nasdaq: NISN), a technology and industry driven integrated supply chain solutions provider, is pleased to announce a significant milestone in its partnership with Zhejiang ZTO Yunpei Food Co., Ltd. ("ZTO Yunpei"), the supply chain company under ZTO Express, a leading logistics company in China.

ZTO Yunpei has signed a purchase agreement with Nisun International, marking a major step forward in the growth and expansion of both companies in China's thriving egg market. Under the agreement, Nisun International has supplied eggs to ZTO Yunpei for distribution to its customers, resulting in sales exceeding 500 million RMB (approximately 68.7 million USD) to date.

Nisun International is a key player in China's egg market, with the capability to supply over 20 million eggs daily. The company's accumulated sales from eggs have reached over 5 billion RMB (approximately 687.9 million USD), demonstrating its strong position in this rapidly growing market.

According to recent market data, China's egg market is expected to reach 10.32 billion kg by 2029, with a volume growth of 8.8% in 2025. In 2024, the market is projected to generate US$22.50 billion in revenue, with China accounting for the majority of global revenue in this sector.

The partnership with ZTO Yunpei is a strategic move for Nisun International, leveraging ZTO Yunpei's extensive network and logistics capabilities to expand its reach in the egg market. This collaboration is expected to drive significant growth for both companies, capitalizing on the increasing demand for eggs in China.

"We are thrilled to partner with ZTO Yunpei, the supply chain company under ZTO Express, a leading logistics company in China," said Mr. Xin Liu, CEO of Nisun International. "This agreement marks a major milestone in our growth strategy, and we are confident that this partnership will drive significant expansion in the egg market. We look forward to working closely with ZTO Yunpei to deliver high-quality eggs to customers across China."

ZTO Yunpei is a leading express delivery company in China, providing a wide range of express delivery and logistics services. The company's extensive network and logistics capabilities make it an ideal partner for Nisun International, enabling the company to expand its reach and capitalize on the growing demand for eggs in China.

About Nisun International Enterprise Development Group Co., Ltd

Nisun International Enterprise Development Group Co., Ltd (NASDAQ: NISN) is a technology-driven, integrated supply chain solutions provider focused on transforming the corporate finance industry. Leveraging its industry experience, Nisun is dedicated to providing professional supply chain solutions to Chinese and foreign enterprises and financial institutions. Through its subsidiaries, Nisun provides users with professional solutions for technology supply chain management, technology asset routing, and digital transformation of tech and finance institutions, enabling the industry to strengthen and grow. At the same time, Nisun continues to deepen the field of industry segmentation through industrial and financial integration. Focusing on industry-finance linkages, Nisun aims to serve the upstream and downstream of the industrial supply chain while also assisting with supply-side sub-sector reform. For more information, please visit http://ir.nisun-international.com/

Cautionary Note Regarding Forward-Looking Statements

This press release contains information about Nisun's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. Nisun encourages you to review other factors that may affect its future results in Nisun's registration statement and in its other filings with the Securities and Exchange Commission. Nisun assumes no obligation to update or revise its forward-looking statements as a result of new information, future events or otherwise, except as expressly required by applicable law.

Contacts

Nisun International Enterprise Development Group Co., Ltd

Investor Relations
Tel: +86 (21) 2357-0055
Email: ir@cnisun.com 

Horizon Research Management Consultancy
Michael Wei
Email: hwey@horizonconsultancy.co 

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SOURCE Nisun International Enterprise Development Group Co., Ltd

FAQ

What is the value of Nisun International's (NISN) recent egg sales to ZTO Yunpei?

Nisun International's recent egg sales to ZTO Yunpei have exceeded 500 million RMB (approximately 68.7 million USD) to date.

How many eggs can Nisun International (NISN) supply daily?

Nisun International has the capability to supply over 20 million eggs daily.

What is the projected size of China's egg market by 2029?

China's egg market is expected to reach 10.32 billion kg by 2029.

What is the expected revenue for China's egg market in 2024?

The egg market in China is projected to generate US$22.50 billion in revenue in 2024.

What is the total value of Nisun International's (NISN) accumulated egg sales?

Nisun International's accumulated sales from eggs have reached over 5 billion RMB (approximately 687.9 million USD).