ETAO Announces Termination Of Contractual Arrangements With Seven VIEs
Portfolio Pulse from Benzinga Newsdesk
ETAO International Co. Ltd. has announced its plan to terminate contractual arrangements with seven of its twelve consolidated affiliates subsidiaries. The move is part of a reorganization plan aimed at trimming operations and improving profitability. The seven disposed VIEs had an aggregate net loss of $7.5 million for the fiscal year ended December 31, 2022. The company expects the disposition to decrease expenses and increase revenue in the long run.
October 12, 2023 | 7:59 pm
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ETAO's decision to terminate contracts with seven of its affiliates is expected to improve profitability by reducing expenses and increasing revenue. The disposed VIEs had a net loss of $7.5 million in the last fiscal year.
ETAO's decision to terminate contracts with seven of its affiliates is a strategic move to cut losses and improve profitability. The disposed VIEs had a net loss of $7.5 million in the last fiscal year, indicating that they were a financial burden to the company. By terminating these contracts, ETAO can reduce its expenses and potentially increase its revenue, which could have a positive impact on its stock price in the short term.
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