CHONGQING, China, Dec. 27,
2024 /PRNewswire/ -- BGM Group Ltd. (Stock Code:
BGM) has successfully acquired Rongshu Technology and Xinbao
Investment Company, both subsidiaries of AIX Corp. (Stock Code:
AIFU), in a transaction valued at approximately $140 million. This acquisition presents
substantial opportunities for BGM Group's AI-driven insurance
business.
1. Building an Efficient Equity Structure to Enhance
Synergies
With the completion of this acquisition, AIFU will officially
become a shareholder of BGM Group. Under the astute leadership of
CEO Mr. Xin Chen, Rongshu Technology
and Xinbao Investment Company will work collaboratively to fully
harness and unlock BGM Group's growth potential.
Mr. Xin Chen, an outstanding
graduate in computer AI from the National
University of Singapore, brings a strong technical
background and innovative spirit to the table, successfully
integrating AI technology into traditional pharmaceutical
operations. This integration has created a unique niche for BGM
Group in smart insurance solutions, providing a significant
competitive advantage.
On one hand, BGM Group is not only expanding its insurance
revenue through AIFU but will also leverage the Duxiaobao data
platform to achieve global expansion of its health-focused
initiatives. On the other hand, with the backing of substantial
shareholder AIFU's capital and the management expertise of CEO Mr.
Xin Chen, BGM Group has laid a solid
foundation for growth in both technology and capital markets.
2. Governance Structure: Transitioning from Traditional
Business to Diversified Development
The governance framework of BGM Group is undergoing a positive
transformation, shifting from traditional sales management to
cross-industry collaboration. By planning the acquisition of the
Duxiaobao platform—developed in partnership with AIFU and
Baidu—this governance structure optimizes internal resource
allocation while providing strong support for future business
expansion.
3. Business Structure & Fundamentals: Dual-Engine Driven
Performance Growth
(a) AI Insurance Brokerage: Disrupting Traditional Sales
Models Historically
BGM Group has been a global company focused on pharmaceuticals
and chemicals, but its diversified investment strategy has opened
doors to emerging markets. The planned acquisition of Duxiaobao, an
AI insurance platform developed by AIFU and Baidu, aims to
revolutionize the insurance industry through big data analytics and
artificial intelligence.
(b) Customized Solutions: Aligning with Industry
Trends
With Duxiaobao's technological capabilities and market
potential, BGM Group is poised to become a leader in the AI
insurance sector. Duxiaobao, a platform based on big data and AI
technology, offers precise underwriting and personalized services
to clients. Compared to the traditional insurance model that relies
heavily on human sales, Duxiaobao's intelligent technology not only
improves efficiency but also reduces operational costs, thereby
disrupting conventional sales approaches. This innovation has the
potential to achieve geometric increases in client numbers,
establishing technological barriers and brand advantages within the
insurance industry.
(c) Health and Wellness Business: Seizing
Opportunities in the Silver Economy
As the global population ages, the health and wellness sector is
experiencing rapid growth. BGM Group plans to integrate its
resources into this market, offering services such as anti-aging
genetic management and medical diagnostic support. This strategy
meets the rising demand for high-quality health services and opens
new revenue channels for the company.
The combination of health and wellness initiatives with AI
insurance creates a unique competitive advantage for BGM Group. By
leveraging technological collaboration, the group can provide
clients with comprehensive solutions that cover the entire
lifecycle of insurance and health management, thereby enhancing
client retention and brand value.
Conclusion: Undervalued Market Capitalization and Growth
Potential
BGM Group's stock price has experienced significant volatility
in recent times. On December 2, 2024,
the company's share price surged by 13.49%. This increase reflected
a shift in market sentiment and investor expectations regarding the
company's future endeavors.
Currently, BGM Group's market capitalization remains
significantly undervalued in the secondary market. As a company
that is actively expanding its AI insurance and health and wellness
businesses, its true potential has yet to be fully reflected in its
stock price.
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SOURCE BGM Group Ltd.
