GLTA
Peak Fintech Business Hub Shows Promising Results Following Entry into Oil and Gas Industry in Q3
Montreal, Quebec--(Newsfile Corp. - October 8, 2021) - Peak Fintech Group Inc. (CSE: PKK) (OTC: PKKFF) ("Peak" or the "Company"), an innovative Fintech service provider and manager of the Cubeler Business Hub, today announced that the arrival of its Business Hub in the oil and gas industry in China produced promising results in the third quarter of 2021.
As Peak continues its march to bring purchase order financing, cash flow management, payment processing, logistics and overall improved efficiency through its Business Hub to various supply-chain verticals in China, the Company quietly made its entry into the oil and gas industry in the early part of the third quarter of 2021 with a few pilot projects. The oil and gas sector is one of five key supply-chain verticals Peak believes it can leverage to eventually spread the use of its Business Hub to almost every industrial sector in China.
With 14.2M barrels of oil consumed per day, China is the world's second largest oil consumer behind only the United States. As China looks to cut down on carbon dioxide emissions and gradually reduce its dependence on coal as a source of energy, demand for other sources of energy such as oil will only increase. Therefore, Peak believes that introducing the Business Hub to the oil and gas industry not only provides it with an exceptional opportunity today, but that the Company could see the move pay considerable dividends for years to come. Peak strategically introduced its oil and gas related Business Hub services in Guangzhou. Located on the Pearl River just northwest of Hong Kong, Guangzhou is classified as a large-port megacity as it features both a large urban population and large volumes of port traffic. Once boasting the only Chinese port accessible to most foreign traders, Guangzhou is still where many large cargo ships fuel up for their long journeys, which makes it the ideal city for Peak to test the demand for its oil and gas related Business Hub services.
Working with some of China's biggest energy players, including PetroChina, Sinopec and British Petroleum (BP), Peak began to offer some of their larger distribution clients and their affiliated service stations in the city of Guangzhou the opportunity to purchase some of their products through the Company's Gold River platform and benefit from the Business Hub's value-added purchase order related services. While the new Business Hub clients were still getting acclimated with its features, the Hub still managed to process eleven transactions during the quarter for which 1.03B RMB (approximately CAD$200M) of financing was provided, generating over CAD$6M in revenue for the Company during the quarter. Peak will look to eventually service participants all along the oil and gas supply-chain, from refineries to service stations, but for now the Company is very pleased with the initial results of its venture into the space.