GUANGZHOU, China, Dec. 27, 2024 (GLOBE NEWSWIRE) -- AIX Inc. (the "Company" or AIX) (NASDAQ: AIFU), a leading independent technology-driven financial services provider in China, today announced the successful completion of its strategic share exchange transaction with BGM Group Ltd. (BGM) (NASDAQ: BGM), marking a significant milestone in its long-term transformation within the AI-driven insurance and healthcare space, and establishing a strong foundation for its future diversified growth.
As part of the transaction, AIX transferred its intelligent insurance platform, including RONS Intelligent Technology (Beijing) Co., Ltd. ("RONS Technology"), to BGM in exchange for 69,995,661 Class A ordinary shares of BGM. Upon completion of this transaction, BGM will take full control of the intelligent platform and leverage its extensive resources in the global healthcare sector to accelerate the platform's development and innovation.
Key Highlights of the Transaction:
Growth Potential: The AI insurance platform Du Xiaobao has significant market potential. Powered by big data, the platform offers personalized insurance solutions and is poised to drive strong growth for BGM in the coming years. AIX, through its significant equity stake in BGM, will continue to benefit from the platform's development and market expansion.
Business Synergy: The partnership with BGM, a global leader in the pharmaceutical industry, enhances AIX's presence not only in AI insurance but also in the healthcare sector. This synergy creates unique opportunities to integrate AI, insurance, and healthcare solutions, positioning both companies for long-term leadership across multiple industries.
AI and Healthcare Strategy: With growing demands for healthcare services globally, particularly due to an aging population, AIX is leveraging AI technology to offer tailored insurance and healthcare solutions. Through its partnership with BGM, AIX is solidifying its position at the intersection of AI, insurance, and healthcare sectors poised for significant growth. This integrated strategy is expected to be a driving force for future innovation and value creation.
Valuation Re-Discovery and Strategic Breakthrough: As AIX expands into the healthcare sector with its equity stake in BGM, the Company believes that it will benefit from any revaluation driven by the platform's growth and the increasing market demand for AI-driven insurance and healthcare solutions.
Mr. Yinan Hu, Vice Chairman and CEO of AIX, commented: "The completion of this transaction marks a significant step forward in our strategy to lead the transformation of the insurance and healthcare industries through AI. Our partnership with BGM enables us to tap into new growth opportunities and further strengthen our position in both the AI and healthcare sectors. We look forward to continuing to innovate and deliver substantial value to our stakeholders."
Mr. Xin Chen, CEO of BGM, stated: "This transaction accelerates our ability to leverage AI in the insurance and healthcare industries. With the growing demand for innovative healthcare solutions driven by AI and big data, we are well-positioned to capture significant market opportunities. We are excited about the future and look forward to driving growth and innovation alongside AIX."
As the global healthcare landscape evolves, the strategic partnership between AIX and BGM positions both companies to lead the way in AI-driven insurance and healthcare solutions. By combining their respective strengths, the two companies are set to unlock new growth avenues, create lasting value for their shareholders, and drive the digital transformation of the industries they serve.
About AIX Inc.
AIX, established in 1998, is a leading intelligent technology-driven independent financial services provider in China. It provides 400 million middle-class families with insurance protection, wealth management, and value-added services and provides independent financial advisors and various insurance/financial sales organizations with technical support and comprehensive solutions. Through AI-driven insights and cutting-edge digital tools, AIX has successfully established itself as a leader in intelligent transformation within the financial services industry.
Forward-looking Statements
This press release contains statements of a forward-looking nature. These statements, including the statements relating to the Company's future financial and operating results, are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will", "expects", "believes", "anticipates", "intends", "estimates" and similar statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about AIX Inc. and the industry. Potential risks and uncertainties include, but are not limited to, those relating to its ability to attract and retain productive agents, especially entrepreneurial agents, its ability to maintain existing and develop new business relationships with insurance companies, its ability to execute its growth strategy, its ability to adapt to the evolving regulatory environment in the Chinese insurance industry, its ability to compete effectively against its competitors, quarterly variations in its operating results caused by factors beyond its control including macroeconomic conditions in China. Except as otherwise indicated, all information provided in this press release speaks as of the date hereof, and AIX Inc. undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although AIX Inc. believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by AIX Inc. is included in AIX Inc.'s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.
