Future Fintech Group Inc (NASDAQ: FTFT) is having an incredibly strong start to the trading session this morning, with gains that are better stated in multiples than percentages. The gains come after the company announced the establishment of a subsidiary, leading to excitement. Today, we’ll talk about:
- The new subsidiary;
- what we’re seeing from FTFT stock as a result; and
- what we’ll be watching for ahead.
FTFT Soars On Subsidiary Establishment
As mentioned above, Future FinTech Group is having a great day in the market today after the company announced that it has established a new subsidiary. The news came by way of press release early this morning. In the release, the company announced the establishment of Chain Cloud Mall Logistics Center (Shaanxi) Co., Ltd.
The new entity is a wholly owned subsidiary of Chain Cloud Mail Network Technology. FTFT said that the new company is located in the national kiwifruit Industrial Park of Baoji City, where it occupies a total of 18.78 acres and has floor space of 215,278 square feet.
The company said that the CCM Logistics Center provides merchants with integrated supply chain solutions. This includes transportation, after-sale service and customer service. The center also provides warehousing and distribution solutions. In a statement, Mr. Yongke Xue, CEO and Chairman at FTFT, had the following to offer:
Since the official launch on January 22, 2019, to present, Chain Cloud Mall (CCM) has attracted over 3000 users globally and generated RMB 40 million of gross merchandise value (GMV, including the amount of the orders, amounts deposited by members and transferred among the members) in total. It has received extensive user support and won a good reputation in the industry.
By applying the shared economy theory to Chain Cloud Mall (CCM), we bring the traditional e-commerce platform to a different level. We will continue to optimize the functions, so that users can get maximum return on their investment.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Future Fintech, the news proved to be overwhelmingly positive.
With the opening of this new subsidiary, the company has yet another opportunity to drive a substantial increase in revenue. So, it’s not surprising to see that excited investors are sending the stock on a run for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:14), FTFT is trading at $1.92 per share after a gain of $1.12 per share or 138.56% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on FTFT. In particular, we’re interested in following the story surrounding the company’s continued work to bring growth through the establishment of this new subsidiary. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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