G7 Connect and E6 Technology Announce Completion of Merger

The merger combines IoT technology with software services to empower the road freight transport sector

BEIJING,June 11,2022 -- G7 Connect Inc. ("G7"),a fleet management company backed by Tencent Holdings Ltd.,and E6 Technology ("E6"),announced the merger of the two companies. The merger took place in the first quarter of 2022,with the initial stage of their business integration having been completed. G7 co-founder and CEO Zhai Xuehun has been appointed as chairman and CEO of the merged group (hereafter referred to as the "Group"),while E6 chairman and CEO Zhang Jingtao will serve as vice chairman and G7 CFO Zhang Jielong as CFO.

G7 Connect and E6 Technology Announce Completion of Merger

The merger will create the largest and most influential software service provider in the industry,with businesses spanning key vertical markets covering both production and consumer logistics. The Group's customers include major players in the trillion-yuan road freight transport market. With its product portfolio serving as a one-stop digital service that integrates subscriptions and transactions,the merged entity consolidates the two prior firms' advantages in technology,making it the only technology company in the sector to provide a comprehensive range of Internet of Things (IoT) software as a service (SaaS) services.

The Group is well positioned to provide customers with more cost-competitive,premium services by optimizing its supply chain and service networks and reducing procurement and operating expenses. It also plans to continue investing in technology and R&D in a move to provide customers with valuable data-driven products,with the aim of facilitating an industry-wide upgrade to a connected supply chain supported by data intelligence.

G7 and E6 were among the few fleet management firms that were capable of providing IoT SaaS solutions due to substantial investments in IoT,data,algorithms and software technologies alongside continued strengthening of their respective advantages in technology as a way to build barriers to competitors. Both firms had also explored and implemented differentiated approaches based on their respective core competencies. Notably,G7 had established a leadership role in the area of IoT technology empowered software subscription,and overall capacity and transactions on transpiration,energy,insurance and equipment,while E6 had been dedicated to providing software subscription services to large cargo owners and logistics providers,becoming a leader within the domain of consumer logistics,including fast-moving consumer goods (FMCG),retail,food,and cold chain logistics.

"Although the digital transformation journey of the sector has just begun,freight cooperators are looking forward to changing how they operate and achieving business success through the application of digital solutions," said the chairman and CEO,Mr. Zhai. "The combination of G7 and E6 enables us to invest more firmly in technology and to further create value for our customers by way of data-driven products."

"Prior to the merger,both companies believed in the importance of helping customers succeed and bringing changes to the sector by virtue of IoT SaaS services while post-merger,the shared belief has become our common ambition," stated the vice chairman,Mr. Zhang. "We plan to continue providing premium products and services with the goal of building an outstanding SaaS company with an ongoing commitment to creating value for customers."

G7,a leading provider of IoT SaaS services for the road freight transport sector,served a wide range of small,medium and large freight managerwith IoT-based software subscriptions and transaction services. The firm,by continuing innovations in technology and expanding its portfolio,had been leading the sector in terms of software subscriptions as well as transaction services for transport capacity,insurance and equipment. E6,a pioneer in IoT SaaS services for the sector,had been dedicated to providing customers with IoT-based software subscription services with a focus on large cargo owners and logistics companies. With a continued commitment to tightly-run operations and superior services,the company has earned a reputation as the dark horse in the FMCG,food and cold chain segments.

As two leaders in the IoT technology and software services space,both G7 and E6 had been focusing on providing IoT technologies and software to large cargo owners and logistics providers as well as to tens of thousands of freight managers. Prior to the merger,the two firms together served over 80% of China's large cargo owners and logistics providers in addition to assisting almost 30,000 small and medium-sized freight managers in improving efficiency and increasing revenue.

The merger received strong support from both firms' shareholders. AnJie Law Firm,Llinks Law Offices,Global Law Office,Simpson Thacher & Bartlett,Deloitte,KPMG and Boston Consulting Group provided professional services for both the transaction and integration efforts. Following the completion of the merger,Global Logistic Properties' private equity arm Hidden Hill Capital,Tencent,Cainiao Smart Logistics Network and other investors have each appointed representatives to the Group's board of directors in tandem with carrying out specific tasks with an eye to further deepening their business collaboration.

¹ Freight manager refer to enterprises that manage the operation and trading activities of road freight,including large,medium and small cargo owners,logistics companies,self-owned fleets,outsourced fleets,commerce trading companies,manufacturing enterprises,etc. According to a BCG research report,about 700,000 freightmanagers carry about 85% of China's road freight volume and are major players in the road freight market.

For more information,please visit G7.

Media Contact:

Peipei Lin,linpeipei@g7.com.cn

Shuai Zhang,conntect@g7.com.cn

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