BGM Group's Strategic Acquisition of Wonder Dragon Enhances Healthcare Focus

BGM Group Acquires Wonder Dragon to Enhance Healthcare Strategy

In a significant move aimed at strengthening its position in the healthcare sector, BGM Group Ltd. (Nasdaq: BGM) has finalized a definitive transaction agreement to acquire Wonder Dragon Global Limited. This acquisition is valued at approximately RMB 550 million, involving the issuance of 38,165,290 Class A ordinary shares at a price of $2 each. The completion of this deal is anticipated in the second quarter of 2025.

Wonder Dragon is renowned for its extensive inventory of premium Qingzhuan dark tea, boasting over 3,000 metric tons which comprise both raw materials and finished products. These products are not only highly regarded for their unique flavors but also possess substantial medicinal and historical significance. This acquisition will serve as a cornerstone for BGM Group’s efforts in research and development, particularly in the realm of health products.

Expanding Healthcare Offerings

BGM Group’s strategic acquisition of Wonder Dragon is positioned to enhance its health product portfolio significantly. The company is already at the forefront of integrating Artificial Intelligence (AI) technology and big data analytics with biopharmaceutical innovations. This merger promises to elevate the efficiency of tea production, adapt products to changing consumer needs, and fast-track the development of active ingredients for medicinal applications.

Following the acquisition, BGM Group's plan is to harness its advanced AI-powered decision-making platform to revolutionize tea production methodologies. The integration aims to improve efficiency across production lines while ensuring product quality and diversity.

Innovative Product Development

Mr. Xin Chen, the CEO of BGM Group, emphasized the value that Wonder Dragon brings to the table. He stated, “The resources from Wonder Dragon’s Qingzhuan dark tea, coupled with our biotechnology platform, will significantly advance our medicinal tea product development and distribution.” Chen highlighted the company’s ambitious plans to launch innovative tea products tailored toward health benefits, such as ginseng-infused Qingzhuan dark tea and goji berry varieties.

This not only diversifies BGM Group's offerings but also aligns with an evolving consumer trend that favors health-focused products, paving the way for a robust ecosystem combining ‘medicine + tea + health.’

BGM Group’s Vision

BGM Group has a comprehensive strategic focus that encompasses various technology fields including AI applications, intelligent robotics, algorithmic computing power, cloud computing, and biopharmaceuticals. In the realm of AI, the company employs big data mining and utilizes two specific platforms—Du Xiao Bao and Bao Wang—to deliver tailored AI solutions for insurance-related businesses.

Its services encompass critical operational scenarios such as sales and marketing, underwriting assessments, and claims processing, which ultimately enhance customer service experiences. The ability to analyze consumer data allows BGM Group to create accurate consumer profiles, thereby customizing services to meet individualized insurance needs.

Within the biopharmaceutical sector, BGM Group’s production division specializes in oxytetracycline API, crude heparin sodium, and various licorice preparations, supplying them to the global animal husbandry and pharmaceutical markets. The intersection of AI with biopharmaceutical production enables the group to optimize supply chains, boost manufacturing processes, and predict market trends, ensuring high-quality products and services for consumers.

As this acquisition of Wonder Dragon progresses, the future seems promising for BGM Group as it accelerates its commitment to innovation in healthcare and beyond, leveraging both its technological prowess and its newly acquired tea resources.

For media inquiries, please contact BGM Group's investor relations team.