Token Cat Limited announced a strategic cooperation framework agreement with Ouyi Industrial Co., Ltd. The partnership will create a cross‑border supply‑chain cloud platform and aims to generate cumulative overseas sales of $1 billion over the next three years.
The platform will integrate product display, collaborative sales, cross‑border logistics, warehouse and distribution management, and after‑sales support. Token Cat will leverage its aftermarket parts supply capacity and automotive sales portfolio, while Ouyi will bring its established overseas channel network and trade experience to help the two companies reach new markets.
The announcement comes as Token Cat’s financial performance remains weak. In 2024 the company reported a 69.71 % decline in revenue and a 126.6 % increase in losses, with a trailing‑12‑month revenue of $5.07 million and a net margin of –400.87 %. The company’s Altman Z‑Score places it in the distress zone, and it has recently taken steps to comply with Nasdaq’s minimum bid‑price requirement, including a planned 1‑for‑20 reverse ADS split.
Ouyi Industrial, founded in 2012, specializes in customized nameplates, metal labels, and other hardware accessories. While its core business is metal product manufacturing, it has been exporting for more than a decade and has experience in OEM and ODM orders. The partnership will allow Ouyi to apply its overseas channel expertise to the automotive marketplace, while Token Cat gains access to a broader international distribution network.
Token Cat’s management emphasized that the partnership is a key element of its digitization and globalization strategy. By building a cloud‑based cross‑border platform, the company aims to accelerate entry into high‑growth global markets, support future vehicle exports, and expand into key EV components and other potential business lines. The $1 billion sales target reflects the company’s ambition to scale its operations, but it also underscores the significant risk given the current financial position.
The deal represents a bold step for Token Cat, which has struggled to maintain profitability and market share in China’s competitive automotive marketplace. The partnership could diversify revenue streams and reduce reliance on domestic sales, but the company will need to execute the platform quickly and manage costs to achieve the ambitious target. Investors will likely scrutinize the company’s ability to deliver on the $1 billion goal while navigating its weak financial footing and regulatory compliance challenges.
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