Jiuzi Holdings Shares Up After Agreement to Acquire Automobile Sales Serviceshop Operator Under Top China Automaker
Apr 26, 2022 By MarketDepth
Jiuzi Holdings, Inc. (NASDAQ: JZXN) shares jumped more than 35% after the Company announced that, on April 11, 2022, the Company, through its subsidiary Hangzhou Jiuyao New Energy Automobile Technology Co. Ltd. (“Hangzhou Jiuyao”), has entered into an equity acquisition agreement (the “Agreement”) to acquire 72.05% equity interest in an automobile sales service shop operator, Huizhou Jiwo Automobile sales service Co. Ltd. (the “Target”), from Guangdong Huarui Automobile Sales Service Co., Ltd. (“Guangdong Huarui”), a subsidiary of a top China automaker Geely Auto Group, which produces the premium electric vehicle brand “Geometry.”
“This acquisition is an important strategic milestone for our Company. The addition of the high-end EV brand Geometry of Geely Auto Group furthers our multi-brand strategy and achieve another major advancement by upgrading our competitiveness and securing sustainable development in the future. It will also drive our continuous business growth in the new fiscal year. Furthermore, since Geometry could potentially achieve over 1,000 unit sales, we are confident that the model will contribute significantly to our annual sales in 2022. Notably, it also marks a meaningful step for our Company in penetrating the southern China market.”Mr. Shuibo Zhang, CEO of Jiuzi Holdings, Inc.
Pursuant to the Agreement, Hangzhou Jiuyao will acquire 72.05% equity interest in the Target and will make an investment into the Target’s registered capital upon completion of the transaction under the requirement of China’s commercial policies. The Target is the sole authorized dealer for Geometry EVs in Huizhou city, Guangdong province. It is also a repair center for vehicles participating in online hailing services, and provides integrated auto services such as EV sales and after-sale maintenance. The Target sold more than 1,000 units of EVs in 2021.
“As competition becomes increasingly fierce in the new energy vehicle market, JZXN will continue to innovate, forge ahead, improve our competitive strength, and manifest our brand’s core value through forward-looking strategic planning, in order to build a first-class smart trading platform for new energy vehicles and to provide consumers with a premium green travel experience.”