Taoping Tumbles Despite New Sales Pact
Taoping Inc. (NASDAQ: TAOP) shares descended Monday, as the China-based provider of innovative smart cloud platform services and solutions, today announced that it has been selected for a new RMB 20 million (US$2.8-million) sales and purchase agreement.
Under the latest agreement with Hunan Xiuxiang Agricultural Technology Co., Ltd., the two parties will cooperate over a two-year period, during which Taoping will supply designated agricultural products.
Xiuxiang Agricultural, based in Changsha, Hunan Province, specializes in the sale of vegetable products.
After studying Taoping's state-of-the-art agricultural base in Mengla County, Yunnan Province, the company selected Taoping to help further modernize its operations and increase supply chain efficiency.
Today's agreement follows the major agreement Taoping announced earlier this year for a project expected to generate an annual output value of RMB 600 million (US$83.3 million) by 2027 in Mengla County, Xishuangbanna Prefecture, Yunnan Province.
The scope includes advanced agricultural planting, the efficient application of agricultural technologies, the incubation of high-tech enterprises, and agricultural ecological tourism.
CEO Jianghuai Lin said: "I am very proud of our team for all of its hard work and continued execution. This is an exciting new growth market for us, where we can leverage our expertise to add tremendous value to our partners and, we believe, also unlock significant value for our shareholders.
“We are already seeing very high interest from potential partners, given the enormous demand for agricultural products, especially vegetables, in China due to its large population."
Shares in TAOP slid 57 cents, or 7.8%. Monday to $6.80.
