Yimutian Inc. (YMT) had a message for investors on Tuesday: we're putting our money where our mouth is. The company laid out a strategic update that included a bold revenue target, progress on a sizable funding round, and a not-so-subtle show of confidence from management. The market liked what it heard, sending shares sharply higher.
The headline number is a full-year revenue target of about 1 billion Chinese yuan for 2026. To get there, Yimutian is tapping a $30 million convertible note facility it signed back in December. So far, investors have funded an initial $3.3 million tranche, with a second tranche expected to close soon. The company plans to draw down the rest over the year, subject to the usual conditions, and says the cash will fuel both organic growth and potential acquisitions.
When the Bosses Buy
Perhaps more interesting than the funding is what management is doing with its own money. The company said its executives plan to buy at least $3 million worth of Yimutian shares on the open market over the next nine months. On top of that, they've agreed to a 12-month lock-up on their existing stock holdings.
It's one thing for a company to talk about being aligned with shareholders. It's another thing for the people running the show to put real cash on the line, accepting "real market risk," as Yimutian pointed out. The company is also working with its board to adopt a formal share repurchase program. When insiders are buying and talking about buybacks, it's usually a sign they think the stock is cheap.
Building a Billion-Yuan Business
So, where is all this growth supposed to come from? Yimutian says it expects the 1 billion yuan revenue target to split roughly 50/50 between its core business and its pending acquisition of Ningbo Xunxi Technology.
The core growth engine is firing on a few cylinders: integrating online and offline operations, expanding into regions it hasn't fully tapped yet, digitizing its supply chain, and building deeper relationships with supermarkets and livestreaming commerce platforms. The company also promised to give investors a clearer picture in future reports, with more detailed segment disclosures and unit economics.
The Acquisition Play
The other half of the growth plan hinges on the deal for Ningbo Xunxi Technology. Yimutian said Monday it will acquire 100% of the company for 50 million yuan—40 million in cash and 10 million in stock options.
Xunxi isn't a small fry. It runs an enterprise procurement platform serving banks, government agencies, and corporate clients, and it reported about 340 million yuan in revenue and 5.8 million yuan in net profit for 2025. For Yimutian, which is in the agricultural supply chain business, the deal is about adding digital commerce capabilities on the demand side. Xunxi's team will stay on to run the business as a dedicated unit.
The agreement also includes a performance-based earnout tied to audited net profit through 2028, which is a common way to make sure the acquired management stays motivated. The deal is still subject to the usual closing conditions.
Put it all together—a big revenue target, fresh funding, insider buying, and a strategic acquisition—and you get a stock that's moving. According to market data, Yimutian shares were up over 21% in premarket trading Tuesday.
