(Yicai) June 26 -- Damon Technology Group, a Chinese manufacturer of smart conveyor systems, has won a USD43.4 million order from MercadoLibre, the largest e-commerce platform in Latin America.

Damon will supply intelligent cross-belt sorting systems and related services to MercadoLibre's subsidiaries across several Latin American countries, the Shanghai-based company announced yesterday. Deliveries will be made to Mexico, Brazil, and Argentina.

Cross-belt sorting systems are primarily used in e-commerce, express logistics, and warehousing to efficiently and automatically sort goods for dispatch and delivery.

Headquartered in Buenos Aires, MercadoLibre operates the online marketplace MercadoLibre.Com, which connects buyers and sellers across Latin America, including Chile, Brazil, and Mexico.

Damon, which specializes in core logistics system components, counts global e-commerce giants such as Amazon, eBay, JD.com, Pinduoduo, Shein, Shopee (Southeast Asia), and Coupang (South Korea) among its major clients. It also supplies SF Express and Cainiao, major logistics companies in China.

Foreign markets play a key role in Damon’s business strategy. According to its latest annual report, the company generated CNY379 million (USD52.8 million) in overseas revenue last year, accounting for 26 percent of total sales.

Despite the new order, Damon’s stock [SHA: 688360] closed 1.5 percent lower at CNY17.96 (USD2.50) on the Shanghai Stock Exchange today, after rising as much as 2.3 percent intraday.

Editor: Emmi Laine