China Bat Signs New Partnership Deal; Shares Soar 40% After-hours
China Bat Group Inc. (Nasdaq: GLG), which rents luxury cars in China, announced late today that its primary subsidiary signed a two-year agreement with the Liten Group Co. Ltd. to align their automobile operations.
The Beijing-based company said the agreement with Liten would cover automobile sourcing channels, auto finance, and car rental services. Liten is a privately held company that specializes in high-end automobile retail and operates an automobile theme park, Dream Factory.
The news of the agreement was welcomed by investors. Shares in China Bat soared 40 percent after-hours today to $2.85 per share. Earlier, the company had closed up 5 percent to end the trading day at $2.03 per share.
"We are pleased to partner with the Liten Group in a long-term strategic relationship as we leverage our Batcar brand and digital platform to provide a unique experience for luxurious car rentals," said Jiaxi Gao, chief executive officer and president of China Bat. "The Liten Group has consistently been on the forefront of trends in the automotive industry as an established award-winning industry player and we believe Liten Group's trust in us is a testament to our capabilities and an exciting privilege for us."
In its announcement, China Bat said the cooperation between the two companies would include business communication, technical support, marketing, and resource sharing.
With headquarters in Wenzhou, Liten has more than 20 subsidiaries with 1,300 employees.
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