On December 25, 2015, Shenzhen Huaqiang Industry Co. Ltd. signed an agreement with Shenzhen MogulTech to take over 70% of the shares held by its shareholders. On December 31, 2015, MogulTech changed industry and commerce registration of concerning its stock equity and other issues at Shenzhen Industry and Commerce Bureau and became a subsidiary of Shenzhen Huaqiang.
MogulTech is committed in meeting long-tail demand of electronic parts and elements in the market. It applies an operation model of spot goods distribution, that is, centering on OEM/EMS clients in electronic manufacturing industry to use internal IT system developed by MogulTech to meet their long-tail demands for urgent goods and out-of-stock goods and get involved in supply chain service of clients by providing services like rapid knowledge base matching, global price comparison, stock search, rapid ordering and purchasing and rapid delivery etc. After several years’ operation, the internal system developed by MogulTech has accumulated a large volume of transaction data.
Acquisition of MogulTech is an importance step taken by Shenzhen Huaqiang in the industry of independent distribution of electronic parts and components. The Company will make full use of the business advantages of MogulTech as well as the market position of Huaqiang Electronic Network to build and expand on-line transaction platform, further occupy upstream and downstream industry resources and channels, give full play to the resource advantages of database and therefore participate in the in-depth integration and optimization of electronic information industry chain.