Business
EZGO announces purchase of land and industrial property to support Rapid Expansion of its E-bicycle production operations
CHANGZHOU, China, May 20, 2021 /PRNewswire/ -- EZGO Technologies Ltd. (Nasdaq: EZGO) ("EZGO" or the "Company"), a leading short-distance transportation
About this update from Ezgo Technologies Ltd.
[{"type":"text","content":"CHANGZHOU, China, May 20, 2021 /PRNewswire/ -- EZGO Technologies Ltd. (Nasdaq: EZGO) (\"EZGO\" or the \"Company\"), a leading short-distance transportation solutions provider in China, today announced that the Company has agreed to acquire land and factory buildings owned by Tianjin Jiahao Bicycle Co., Ltd. (\"Tianjin Jiahao\") for a total purchase price of approximately US$10.2 million. The transaction is expected to close by June 15, 2021. \nWith the completion of this transaction, Jiangsu Baozhe Electric Technology, the domestic operation company of EZGO, will have more than 35,000 square meters of factory land, including two factory buildings and an administration building, and a construction area of approximately 11,000 square meters. EZGO will also have the flexibility to construct an additional 40,000 square meters of production factory buildings on this land, located in the Beijing-Tianjin Science and Technology Valley in the Wuqing District of Tianjin, which is a part of China's Bicycle Kingdom Industrial Zone. Home to several reputable technology enterprises, this model industrial park in Tianjin is one of the most important centers of the parts supply chain for China's e-bicycle industry. The Tianjin Jiahao property is conveniently and strategically located less than ½ km away from the Beijing-Tianjin Expressway entrance.\nThe estimated production capacity of the existing factory buildings purchased in this transaction is 100,000 units of two-wheeled e-bicycles. The estimated production capacity of the factory building expected to be built on the remaining land being purchased is anticipated to be approximately 500,000 units of two-wheeled e-bicycles. EZGO's current production capacity at its previously leased factory in Nancai Town of Tianjin was nearly 300,000 e-bicycles, with actual capacity of 150,000 e-bicycles due to limited turnover space. This purchase will enable EZGO to significantly ramp production of its e-bicycles following the Company's successful application for the national first-class electric motorcycle qualification. \nManagement Commentary\nMr. Jianhui Ye, Chief Executive Officer of EZGO, stated, \"We are pleased to have come to an agreement with Tianjin Jiahao for the purchase of this land and property, which serves as an important step forward in the ramping of our e-bicycle production operation....