Nisun International Expands into Edible Oil Trading Sector, Targeting RMB 3 Billion (USD 415 Million) in 2025 Revenue.

Rhea-AI Summary

Nisun International (NASDAQ: NISN) has expanded into the edible oil trading sector through the acquisition of Zhetai Tianjin Trading Co., targeting RMB 3 billion (USD 415 million) in revenue for 2025. Zhetai Tianjin, based in the Tianjin Binhai Free Trade Zone, specializes in edible oil procurement, storage, refining, and distribution, operating brands like Jiran, Boxin, Bohai Bian, and Jixin across 11 Chinese provinces. The company has strategic partnerships with industry leaders including COFCO, Sinograin, and Cargill. This expansion aligns with Nisun's strategy to enhance supply chain capabilities in essential industries, with potential synergies between trading operations and supply chain financing services. The Chinese edible oil market, consuming over 40 million tons annually, is expected to grow at a 5% CAGR over the next five years.

Positive

• Expected revenue of RMB 3 billion (USD 415 million) from edible oil business in 2025
• Strategic partnerships with major industry leaders like COFCO, Sinograin, and Cargill
• Strong market presence with distribution across 11 Chinese provinces
• Entry into China's edible oil market with 5% projected CAGR over next five years
• Potential synergies between trading operations and higher-margin financial solutions

Negative

• Financial terms of the acquisition not disclosed
• Integration risks with newly acquired subsidiary
• Increased exposure to commodity price fluctuations in edible oil market

Insights

Supply Chain Expert

Nisun's acquisition of Zhetai Tianjin provides established distribution network and key partnerships in China's growing edible oil market.

Nisun International's acquisition of Zhetai Tianjin represents a strategic expansion into the essential edible oil sector. Zhetai brings immediate value through its established operation in the Tianjin Binhai Free Trade Zone and distribution network spanning 11 Chinese provinces. The company's brand portfolio (including "Jiran," "Boxin," "Bohai Bian," and "Jixin") provides Nisun with established market presence rather than starting from zero.

Particularly valuable are Zhetai's strategic partnerships with agricultural giants like COFCO, Sinograin, Beijing Grain Group, Louis Dreyfus, and Cargill. These relationships ensure stable supply chains for critical raw materials – soybean oil, rapeseed oil, and palm oil – that form the backbone of China's massive edible oil consumption market.

This acquisition follows supply chain integration best practices by acquiring established operational expertise rather than building capabilities internally. With China consuming over 40 million tons of edible oil annually, this expansion provides Nisun with participation in a massive, essential consumer market with relatively stable demand patterns compared to discretionary categories.

The operational synergies between Zhetai's physical trading capabilities and Nisun's technology-driven approach create opportunities to optimize the entire edible oil value chain from procurement through distribution. This expansion significantly enhances Nisun's integrated trading platform capabilities in a high-volume essential goods category.

Financial Analyst

Nisun's edible oil acquisition targets $415M revenue in 2025 with dual-revenue model combining trading and financial services.

Nisun International's expansion into edible oil trading through the Zhetai Tianjin acquisition represents a significant revenue growth opportunity. The company projects RMB 3 billion (approximately USD 415 million) in revenue from this segment for 2025, providing substantial top-line growth potential.

This strategic move positions Nisun in China's edible oil market – the world's largest at over 40 million tons annual consumption – which is projected to grow at approximately 5% CAGR over the next five years. The stable, essential nature of edible oils provides Nisun exposure to a less cyclical market segment.

What makes this acquisition particularly strategic is the potential for cross-selling synergies. Beyond the trading revenue, Nisun plans to offer its higher-margin financial solutions to companies throughout the edible oil value chain. This creates a dual revenue model: physical goods trading complemented by financial services.

Zhetai's established position as a national-scale enterprise in Northern China's edible oil sector provides Nisun with immediate market credibility and customer relationships. The integration of Zhetai (completed in early 2025) expands Nisun's business model while leveraging its existing technology-driven financing and supply chain expertise.

Full financial details of the transaction will be disclosed in the company's first half 2025 report, which will provide greater visibility into the acquisition's financial structure and potential impact on overall corporate performance.

Strategic acquisition enhances supply chain trading capabilities and market presence

SHANGHAI, June 9, 2025 /PRNewswire/ -- Nisun International Enterprise Development Group Co., Ltd ("Nisun International" or the "Company") (NASDAQ: NISN), a technology-driven financing solutions provider and a technology and industry-driven integrated supply chain services provider, today announced a major expansion into the edible oil trading sector through its newly acquired subsidiary Zhetai (Tianjin) Trading Co., Ltd. ("Zhetai Tianjin"), a leading edible oil trading company in Northern China.

Zhetai Tianjin, specializes in the centralized procurement, storage, refining, logistics, and distribution of edible oils, including soybean oil, rapeseed oil, and palm oil. The company expects to generate RMB 3 billion (approximately USD 415 million) in revenue from its edible oil business in 2025, leveraging its robust market position and operational strengths.

Headquartered in the Tianjin Binhai Free Trade Zone, Zhetai Tianjin is recognized as a national-scale enterprise and a leader in Northern China's edible oil sector. It operates several established brands, including "Jiran," "Boxin," "Bohai Bian," and "Jixin," which are distributed across 11 provinces in China. Strategic partnerships with industry leaders such as COFCO, Sinograin, Beijing Grain Group, Louis Dreyfus, and Cargill ensure product quality and supply chain stability.

"This expansion into the edible oil sector is a strategic milestone in Nisun International's ongoing efforts to deepen our supply chain capabilities in high-demand, essential industries," said Xin Liu, CEO of Nisun International. "Zhetai Tianjin's established market presence and operational strength position it as a key growth driver within our integrated trading platform. We are confident in its potential to deliver significant growth in the edible oil market."

Furthermore, Nisun International sees strong potential for synergies between Zhetai Tianjin's trading operations and the Company's supply chain financing services. By cross-selling its higher-margin financial solutions to companies along the edible oil value chain, Nisun International aims to enhance both customer value and long-term profitability.

The Chinese edible oil market, the largest globally, exceeds 40 million tons in annual consumption and is projected to grow at a compound annual growth rate of approximately 5% over the next five years. Zhetai Tianjin's extensive distribution network and strong brand presence position Nisun International to capitalize on this growing demand, further enhancing its supply chain financing services and overall business growth.

Zhetai Tianjin became a majority-owned subsidiary of Nisun International in early 2025. Full details related to the transaction will be included in the Company's first half 2025 financial report.

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 International is dedicated to providing professional supply chain solutions to Chinese and foreign enterprises and financial institutions. Through its subsidiaries, Nisun International 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 International continues to deepen the field of industry segmentation through industrial and financial integration. Focusing on industry-finance linkages, Nisun International 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 International '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 International encourages you to review other factors that may affect its future results in Nisun International 's registration statement and in its other filings with the Securities and Exchange Commission. Nisun International 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.

 

View original content:https://www.prnewswire.com/news-releases/nisun-international-expands-into-edible-oil-trading-sector-targeting-rmb-3-billion-usd-415-million-in-2025-revenue-302476251.html

SOURCE Nisun International Enterprise Development Group Co., Ltd

FAQ

What is NISN's revenue target for its edible oil business in 2025?

Nisun International targets RMB 3 billion (approximately USD 415 million) in revenue from its edible oil business in 2025 through its newly acquired subsidiary Zhetai Tianjin.

Which brands does Zhetai Tianjin operate in the Chinese market?

Zhetai Tianjin operates several established brands including Jiran, Boxin, Bohai Bian, and Jixin, which are distributed across 11 provinces in China.

Who are Zhetai Tianjin's strategic partners in the edible oil industry?

Zhetai Tianjin has strategic partnerships with industry leaders including COFCO, Sinograin, Beijing Grain Group, Louis Dreyfus, and Cargill.

What is the projected growth rate of China's edible oil market?

The Chinese edible oil market is projected to grow at a compound annual growth rate (CAGR) of approximately 5% over the next five years.

When did Zhetai Tianjin become a subsidiary of Nisun International?

Zhetai Tianjin became a majority-owned subsidiary of Nisun International in early 2025.