Yimutian Bets Big on Consumer Market with Xunxi Tech Acquisition

BEIJING – January 23, 2026 – Chinese agricultural technology firm Yimutian Inc. (Nasdaq: YMT) is moving decisively closer to a landmark transformation, announcing that its planned acquisition of e-commerce operator Ningbo Xunxi Technology Co., Ltd. has cleared a major hurdle. The company confirmed it has received a clean legal due diligence report, signaling that its ambitious pivot from a business-to-business (B2B) model to a comprehensive farm-to-consumer ecosystem is firmly on track.

The acquisition, first announced in November 2025, represents a strategic gambit by the agricultural digital services leader to capture the entire value chain, from cultivation to the end-consumer's table. With legal and financial due diligence now complete, the transaction is expected to be finalized by March 2026, setting the stage for a new chapter in China's rapidly evolving digital agriculture landscape.

A Strategic Pivot from Farm to Fork

For over a decade, Yimutian has focused on digitalizing China's vast agricultural supply chain, building a B2B platform that connects over 38 million businesses across thousands of districts and wholesale markets. However, this acquisition marks a fundamental strategic shift. By integrating Xunxi Technology, Yimutian aims to evolve from its core 'B2B' model into a 'B2B2C' (business-to-business-to-consumer) powerhouse.

The goal is to create an end-to-end digital ecosystem that not only serves its existing base of farmers and enterprise clients but also reaches directly into consumer households. This move is expected to diversify Yimutian's revenue streams and enhance the profitability of its existing services, such as its origin sourcing service, Wolaicai. The company projects that the acquisition will begin making a positive contribution to its revenue and earnings per share within the first full fiscal year after completion.

Jinhong Deng, chief executive officer of Yimutian, emphasized the strategic fit. "Xunxi Technology's professional expertise in e-commerce operations holds high strategic synergy with Yimutian's agricultural industrial internet platform," Deng stated. "Leveraging its supply chain experience and channel resources, we can more rapidly cover end-consumer scenarios, providing farmers and enterprise clients with full-chain services from production to sales."

Fusing Agri-Tech with E-commerce Prowess

The success of this strategic pivot hinges on the seamless fusion of two distinct but complementary technology stacks. Yimutian brings its deep-rooted digital infrastructure in the agricultural sector, including its widely used app, intelligent consignment services, and a network that penetrates over 65% of China's wholesale markets. It offers a powerful foundation in upstream production and midstream logistics.

Xunxi Technology, founded by former executives from internet giants NetEase and Alibaba, provides the crucial final-mile expertise. The company specializes in integrated e-commerce solutions, including corporate procurement, employee benefits, and digital marketing for a client base of financial institutions and enterprises. Its strength lies in multi-platform development, sophisticated supply chain management for consumer goods, and a proven ability to operate in the competitive B2B2C space.

By combining Yimutian's agricultural resources with Xunxi's e-commerce engine, the merged entity aims to unlock new market potential. This integration could enable more precise distribution of agricultural products, create new corporate procurement channels for fresh produce, and develop innovative membership services for urban consumers, effectively closing the loop between rural producers and city dwellers.

The Leadership Factor: An E-Commerce Veteran Takes the Helm

A key component of the deal's architecture is the integration of top-tier talent. Upon the acquisition's close, Lei Chen, the chief executive officer of Xunxi Technology, will join Yimutian as Vice President and General Manager of Retail Business. His appointment is seen as critical to navigating the company's entry into the consumer market.

With over 20 years of experience, Lei Chen is a seasoned veteran of China's e-commerce revolution. During his tenure at Alibaba, he was a pivotal figure in launching major platforms like the group-buying site Juhuasuan, the loyalty program Taojinbi, and Taobao Live Streaming. He also served as the first president of Xianyu, Alibaba's highly successful second-hand goods marketplace. This extensive background in building and scaling consumer-facing platforms is precisely the expertise Yimutian needs to execute its B2B2C vision.

Chen described the merger as a "strong alliance." He stated, "Yimutian's advantages in agricultural digital infrastructure and full-industry-chain resources will enable our e-commerce operational capabilities to reach the consumer end more precisely. Whether for corporate procurement, membership services, or agricultural product distribution, it will unlock greater market potential. We are confident about the development prospects after joining."

High Stakes and Market Scrutiny

While the strategic rationale is compelling, the acquisition is not without significant risks, and it will be executed under intense market scrutiny. Yimutian, which went public on Nasdaq in August 2025, has yet to achieve profitability, reporting a net loss of $15.72 million over the last twelve months. The acquisition, to be funded by a combination of cash and stock, will place further demands on its balance sheet, making a swift and successful integration paramount.

Analysts note that the company's high Price-to-Sales ratio of nearly 11 suggests that investors have already priced in substantial future growth, leaving little room for error in the B2B2C transition. Furthermore, with the financials of the privately-held Xunxi Technology undisclosed, a complete assessment of the deal's immediate financial impact remains challenging for outside observers.

The most significant challenge will be execution. Merging a founder-led e-commerce firm with a larger digital agriculture company involves navigating potential cultural clashes and operational hurdles. The ultimate value of the acquisition will depend entirely on Yimutian's ability to translate Xunxi's capabilities into a scalable and, crucially, profitable consumer business.

Despite these cautions, the market has reacted with optimism to the deal's progress, with Yimutian's stock rallying significantly after the due diligence announcement. With the final acquisition expected to be completed by March 2026, all eyes will be on Yimutian to see if this bold fusion of agriculture and e-commerce can cultivate a new harvest of growth.