We intend to expand from a green logistics supply chain firm into an intelligent platform operating company that will be creating profitable recurring revenue streams by converting sustainability and other real-world asset data into digital currencies that are to be traded and monetized on digital asset exchanges. We intend to implement this expansion with our developing asset-to-digital currency conversion capabilities, our exchange network connectivity capabilities, and new project acquisition and sourcing capabilities, all supported by our developing intelligent software capabilities. Taken together, we refer to this combination of developing capabilities our DXG RWA Factory.

Our legacy logistics business generates revenue from contracts to manage the commodities purchasing and sale elements of supply chains on behalf of the supply-chain owners. Our current business is conducted primarily in China, and our primary customer supply chain sector is the transportation of commodities. We also advise and assist our supply-chain owners to convert their supply-chain purchasing, processes, vendors, transportation facilities, and equipment to more sustainable sources.

Once we complete our expansion to also provide an intelligent asset-to-digital platform, we expect to generate revenue primarily from subscription and usage fees and digital asset trading revenue from the monetization of the digital financial instruments we create for our customers, including our legacy logistics customers.

We are currently developing our intelligent software platform, called our DXG RWA Factory, and we intend to implement our data acquisition, conversion to digital financial instruments, and digital monetization process via a combination of manual and automated capabilities.

Once our intelligent platform is deployed, we intend to source customers for that platform from our contacts in our legacy green logistics business and new relationships we intend to build in existing traditional asset classes and new sustainability and other sectors such as nature-based initiatives, green data and computing centers, and grid-level solar energy systems, virtual power grids, and battery storage systems, among others. We use the term “green data” to refer to data that underlies or is associated with environmental market and regulatory instruments such as carbon credits and offsets, renewable energy and energy attribute certificates, biodiversity and habitat credits, and other verifiable measures of sustainability performance.

We also intend to work with financial institutions and other traditional asset owners to create new capital sources for real-world-asset (“RWA”) projects which we believe will help facilitate our customer acquisition going forward.

We generally use the term digital financial instruments in this Prospectus to describe data and contract information that has been converted into formats such that they can be included on blockchain, and thereafter traded on digital financial exchanges. We generally use the term Carbon Credits or Renewable Energy Certificates (“REC”) in this Prospectus to describe digital financial instruments that are created from sustainable energy and carbon capture initiatives and data, and the term RWA to describe digital financial instruments that are created from all other types of data, contracts, and initiatives which are suitable for digitalization on blockchains and trading on digital exchanges.

We generally use the terms Certificate and Token in this Prospectus to describe carbon-related and RWA digital financial instruments, respectively. We intend to follow generally accepted industry nomenclature for these activities in our actual operations.

In February 2023, the China Securities Regulatory Commission (“CSRC”) issued the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies (the “Trial Measures”), which impose filing requirements for direct and indirect overseas listings by Chinese domestic companies. Based on the advice of our PRC counsel, we do not believe these rules apply to this offering because our principal business operations are not conducted in China. As of the date of this prospectus, neither we nor any parties to this transaction have made any filing with the CSRC in connection with this offering. If it were later determined that we are subject to the Trial Measures and failed to comply, we could face penalties, enforcement action, or delays, which could materially affect our business, reputation, and the value of our securities.