NEW YORK, Sept. 20, 2018 /PRNewswire/ -- Ideanomics (formerly: Seven Stars Cloud Group, Inc.) (NASDAQ:SSC) ("Ideanomics" or the "Company"), a leading global fintech and asset digitization services company focused on digital asset production and distribution, is pleased to announce that it has entered into joint venture with APMEN Trade Tech Co Ltd. to establish a leading enterprise focusing on digital supply chain services using blockchain and super artificial intelligence for the Asia-Pacific Model Electronic Port Network (APMEN) APEC's online port clearance system http://www.apmenet.org/
"We are excited to deliver a never seen before intelligent supply chain management platform driven by blockchain and super artificial intelligence technology. We will integrate business data from various partners, establishing a risk control model in cooperation with a single window to provide risk control services for regulatory authorities and enterprises," said Bruno Wu, Chairman and Co-CEO of Ideanomics.
APEC Model E-port Network (APMEN), APEC's online port clearance system was established in 2014 to promote the development of model e-port in APEC countries economies and enhance connectivity among cargo hubs in the Asia-Pacific. It has 16 port members including New South Wales in Australia and Vancouver in Canada. APMEN aims to establish the information sharing network and cooperation platform among member ports, to catalyze the international interoperability of Single Window Systems, and to enhance data transparency and interconnectivity of supply chain in the Asia-Pacific region.
"The full implementation of connecting e-ports across the region using the Ideanomics supply chain finance blockchain will save more than just trading costs and time. By leveraging the expertise of Ideanomics for their best in class intelligent supply chain services and super artificial intelligence technology we are advancing trade facilitation and our supply chain connectivity" said Dr. Liu Yadong Chairman of APEC Model E Port Network.
Dr. Liu Yadong, Chairman of APEC Model E Port Network, and former Chairman of a prominent Shanghai information and technology investment group that leads investment opportunities in Shanghai's information and technology ecosystem, including progressive investments in building the world's largest cable TV network, will become the Chairman of the Joint Venture. Mr. Huang Feng, current Director General of APEC model e port network will become the full time CEO of the Joint Venture. This demonstrates the commitment of the organization and key leadership to the Joint Venture.
With a new world record of 40 million TEUs (twenty Foot Equivalent is a unit of cargo capacity often used to describe the capacity of container ships and container terminals) handled in 2017, the Port of Shanghai has cemented its spot as not only the busiest port in China, but also that of the world.
This exclusive joint venture will focus on:
1) Using super artificial intelligence and blockchain related technologies to streamline the e-port and e-custom operations. The joint venture will build and install exclusively the Ideanomics recommended supply chain finance blockchain to bring banks and financial institutions as lenders and customers together by eliminating layers of middlemen currently causing unusually high interest rates often exceeding 20% annualized. The revenue model for the Joint Venture is based on percentage of lending volume usually 0.5% - 2%, as well as, a risk management Platform as a Service (PaaS) operation which will also base its revenue on lending volume with specifics varying on a case by case but normally are around 0.5%.
2) Using blockchain operations to extend connectivity beyond from port to port, and custom to custom to include the ultimate buyers and sellers with their warehouses directly connected by blockchain
3) Establishing and growing asset-backed securitization opportunities from the operation by securing high yield assets, which can be offered through Ideanomics' global sales network including both traditional and blockchain based solutions of securitization, fractionalization and tokenization.
Ideanomics will have a majority interest of 60% in the Joint venture. APMEN Trade Tech Co Ltd. intends to launch the operations as soon as possible in the two biggest ports: Shanghai and Guangdong (including seven ports), which account for nearly half of China's input and export.
This Joint Venture will become the flagship for Ideanomics Trade Tech Engine. The Joint Venture is in line with Ideanomics' 4+2+1 strategy to drive growth across its core product areas which are 1) Fixed Income-based Financial Digital Assets, 2) Consumer Tech Digital Assets, 3) Commodity and Energy Digital Assets, and 4) TradeTech Digital Assets. The move is expected to help improve the efficiency of customs clearance and allow consumers to track the cross-border goods origins via e-port system connection and data exchange.
About APEC Model E-port Network (APMEN), APEC's online port clearance system.
In order to promote interoperability of ports in the Asia-Pacific region, and to improve the cross-border trade facilitation, in November 2014, the 22nd APEC (http://apec.org/) Informal Leadership Meeting agreed to establish the Asia-Pacific Model Electronic Port Network (APMEN) APEC's online port clearance system. APMEN aims to establish the information sharing network and cooperation platform among member ports, to catalyze the international interoperability of Single Window Systems, and to enhance data transparency and interconnectivity of supply chain in the Asia-Pacific region. So far, APMEN has 19 member ports from 11 APEC economies. Xiamen E-Port joined in September 2017.
So far, 16 ports and e-ports from 11 APEC member economies have joined APMEN. These include: New South Wales (Australia), Vancouver (Canada), TradePort, OnePort, GLSHK (Hong Kong China), Port of Klang (Malaysia), Port of Manzanillo, Port of Lázaro Cárdenas (Mexico), Peru, Shanghai and Xiamen (China), Kaohsiung (Chinese Taipei), Hai Phong, Ho Chi Minh (Vietnam), Lirquen and Coronel (Chile), Cebu (Philippine).
Asia-Pacific Model E-Port Network Operational Center is the daily operational unit of APMEN, APEC's online port clearance system. http://www.apmenet.org/
Ideanomics is continuing to become one of the most prominent global digital asset providers. Relying on its core base of fintech and digital asset production and services-based ecosystem enablement, Ideanomics is committed to delivering the best digital assets via the best underlying technology. This approach will drive capital formation and sales across our digital asset ecosystems.
Ideanomics customizes its technology platform for various business use cases, operates the Platform-as-a-Service (PaaS), and partners with businesses that deliver core digital asset products.
We are focused on delivering a global multi-layer technology infrastructure ecosystem that issues, trades, and settles digital asset transactions. We will leverage direct sales channels and automated sales systems via digital asset exchange platforms which is inclusive of decentralized exchanges to realize digital asset distribution, social media, traditional regulated broker dealer network as well as institutions as direct clients.
Ideanomics continues to drive growth and deal flow in its core product areas:
1) Fixed Income-based Digital Assets [Chinese National Electric Bus Financing Agreement, First Auto Loan Financing Agreement, IHT- Real Estate JV]
2) Consumer Tech Digital Asset [Grapevine acquisition]
3) Commodity and Energy Digital Assets [BBD Digital Capital Group]
4) TradeTech Digital Assets [Asia-Pacific Model Electronic Port Network (APMEN) JV]
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements". All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Federico Tovar, CFO at Ideanomics
Tony Sklar, VP of Communications at Ideanomics