Dallas, Texas 12/23/2014 (FINANCIALSTRENDS) – Strong rally in Chinanet Online Holdings Inc (NASDAQ:CNET)’s stock was largely driven by the company’s announcement pertaining to a long-term strategic partnership agreement. The company partnered with Taiwan-based MediaFun Creative Co. that provides total solution service platform for cloud print services.
The stock rallied almost 40% on Monday with huge trading interest of 5.93 million shares, almost 10-times its average volume of 533,696 shares.
Early in December, Chinanet announced that its subsidiary Liansuo.com signed six new customers at the start of fourth calendar quarter. The new agreements increase total customers tally to 244, representing 59% increase since the end of 2013.
Under the terms of the agreement, Chinanet Online Holdings Inc (NASDAQ:CNET) will leverage its prominence in the SME industry in China to help MediaFun expand its services through mobile and internet. In exchange, MediaFun will share its cloud printing technology and allow using their print services throughout the China market. Both the companies intend to share commissions and profits under this agreement.
George Chu, COO at ChinaNet, said that MediaFun is revolutionizing the field of print services. The company’s cooperative agreement with them will help expand the marketing and related services for its clients. ChinaNet will utilize its significant experience in the China market to help an overseas SME like MediaFun to efficiently expand its business opportunities.
Signing New Customers
New customer additions by Chinanet Online Holdings Inc (NASDAQ:CNET)’s subsidiary Liansuo.com included Rongshida, Kam Tai Cheung Jewelry, Peepul Aroma Cosmetics and CDE Fashion Jewelry, among others. Significant customer additions through 2014 are attributed to the company’s active marketing program including trade shows, online advertising, and referrals.
Chu said that the company is continuously offering cost-effective advertising and value-added services specifically targeted to the mid-size to large segment of the market. As a result, Liansuo.com has achieved significant growth in this large and growing market.