HONG KONG, Jan. 13, 2020 /PRNewswire/ -- Sharing Economy International Inc. (OTCQB:SEII), today issued the following letter to shareholders:
Dear SEII Shareholders:
As I reflect on our progress this past year, I first want to say thank you for your commitment and investment in SEII and would like to take this opportunity to wish you all a very happy, healthy and prosperous 2020.
Throughout 2019, we made significant changes to our company and have made new business plans from the top down including manufacturing and the development of information technologies, and sharing economy related businesses. In order to align with the Company's future direction toward sharing economy and information technology development, we continued to trim down the scale of the legacy dyeing machine business and focus on what we believe is our best opportunity for the future in 2020.
Over the past 12 months, SEII and its subsidiaries have gone through a series of challenges, including restructuring of management, change of business teams, the termination of the two Wuxi VIEs and so on. Through all these events, SEII has more clarity on what particular areas are the most appropriate to pursue in 2020 for future success.
Sharing Economy in Asia
As expected, the sharing economy market is gaining recognition day by day, as evidenced by the successful IPO of Lyft and Uber in the US markets in 2019, as the profitability performance of Meituan-Dianping in China. We continue to believe the development of sharing economy solutions will provide us a lot of business opportunities in the near future, which gives the best benefits to our shareholders.
During the Christmas period in 2019, we have completed the acquisition of the global sharing economy marketplace portal ECrent.com. ECrent is composed of both a web-based marketplace and mobile applications which provides a place for everyone, businesses and individuals, to put up any item and service that they can offer to share through rental to the communities. The concept of sharing economy is to maximize usage of all items and human resources. Through ECrent, our users can start to let everyone in the communities know what is available to rent for short term usage, instead of buying to fulfill just a one-time usage, leaving the item idle and wasted for the remaining of its lifespan.
We believe ECrent will become our industry horizontal backbone to further develop other vertical sharing economy applications which will satisfy the needs of completing vertical sharing transaction processes, to make sharing easier for everyone.
Our goal is to start covering ECrent and other upcoming sharing solutions in the Asia market, through local partnership, where sharing economy can provide the best values for these emerging young markets. Based on feedback from our potential partners in the Asia market, we share a united vision that the sharing of idle assets through rental is the future and a worthy project to invest in. With the foundation of ECrent platform and experience, we will work with regional teams to develop and educate the local markets in the near future.
Our strategy involves establishing a stronghold in the Asia market by picking specific market sectors and focusing on growing these targeted markets while leveraging the ECrent platform to grow the client base. We believe joining with local business partners and creating regional business and marketing alliances across Asia is a win-win arrangement and will enable us to rapidly establish a leading position in the sharing economy.
Sharing Blocks - the blockchain powered transaction engine
Since 2017, SEII focused on transforming the company into a pioneer of a sharing economy ecosystem by connecting different sharing economy businesses from different sectors together. SEII vision is to work with our business partner to develop a universal transaction system based on the crypto-token eCoin and supported by the foundation of blockchain technology which we plan to utilize in our various sharing economy businesses.
Our team finished the first stage of development of SEII's "Sharing Blocks" based on a semi-private blockchain system to develop a stablecoin to minimize volatilities, which brings us closer to achieving this goal to become a secured peer-to-peer transaction solution. We plan to facilitate this semi-private blockchain platform to build a user P2P transaction system. I'd like to clarify that SEII's eCoin system will distinguish itself from crypto-tokens such as Bitcoin, Ethereum, Litecoin…etc. Although eCoin is capable of being the transaction medium, it retains the user credibility rating based on the past activities/transaction via eCoin.
eCoin is currently pegged to the US dollar with a fixed exchange rate, and may be pegged to a bucket of other currencies in the future to maintain the stability of our token. eCoin does not facilitate any mining activity and maintains its own centralized credibility system. It is designed to be a multi-purpose, multi-business transaction system for linking the sharing economy industry. Our goal is to develop and maintain a stable online transaction tracking and user data recording system as opposed to encouraging and facilitating speculation within the ecosystem.
At present, we have developed and are testing our in-house developed blockchain token backend. We are looking forward to have our initial crypto token system to replace our current payment transaction systems within 2020.
Sharing Media - the platforms to open up media markets
In this information age, media play very important roles in the business markets. With the growth of Internet usage, the media markets have been changing very rapidly during the past few years.
SEII sees the business changes in the media market, and we see the opportunity to work with our media partners to develop sharing solutions which allow more flexible and effective placements across different media channels, which can maximize the return on investment of the contents and advertisements.
Our mission - M&A
Since SEII's business transformation plan commenced in 2017 and completing the switching of the company business formation in 2019, we have successfully acquired three sharing economy and IT related businesses and are constantly seeking additional acquisition and partnership opportunities in the sharing economy and IT sectors. In 2020, SEII expects to see growth in market shares in each of our new sharing, rental and media markets, which will diversify the income opportunities of the company based on these newly developed emerging markets in Asia. We will continue to seek more merger and acquisition opportunities in the markets to invite promising sharing economy and IT ventures to join the SEII family.
Given the current market dynamics, 2019 has got off to a challenging start with the world economy facing multiple uncertainties over border and trade disputes and a slow down in investments from ventures. SEII is continuing to seek viable business opportunities to position our business for success in in 2020.
It was an eventful year in 2019. Although, many changes have taken place, we want to thank our employees and partners for all their efforts to help establish a new foundation for 2020 and beyond. We are confident that SEII will improve the business performance in 2020, and continue to grow based on the current business directions in the years to come, becoming one of the major players in the sharing economy and crypto token transaction markets.
The company targets to rebuild a solid business foundation and plan to return to Nasdaq or NYSE in the years to come.
We look forward to providing you with more frequent shareholder updates as we move forward.
Mr. Chan Che Chung Anthony
Sharing Economy International Inc.
SOURCE Sharing Economy International, Inc.