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Jiuzi Holdings, Inc. Signs Letter of Intent with China Petrol Technology on the Development of Electric Vehicle Battery Swap Station Network
HANGZHOU, China, July 14, 2021 /PRNewswire/ -- Jiuzi Holdings, Inc. (NASDAQ:JZXN; the "Company"), a new energy vehicles franchisor and retailer under the
About this update from Jiuzi Holdings, Inc.
[{"type":"text","content":"HANGZHOU, China, July 14, 2021 /PRNewswire/ -- Jiuzi Holdings, Inc. (NASDAQ:JZXN; the \"Company\"), a new energy vehicles franchisor and retailer under the brand name \"Jiuzi\" in China, today announced that it has signed a letter of intent (the \"LOI\") with China Petrol Technology (Shenzhen) Limited (\"CPT\"), an innovative \"internet + energy\" industrial chain platform, to jointly build battery swap stations and battery management system for electric vehicles (EV) across China. Mr. Shuibo Zhang, Chairman of the Company and Mr. Weizhao Jie, CEO of CPT, attended the signing ceremony.\nPursuant to the LOI, the Company and CPT will jointly invest up to RMB 500 million within three years (RMB 200 million within two years in the first phase) on the EV technology R&D and products offerings cover multi-standard EV battery swap station, battery management system and software. \nJZXN and CPT will also start working on the reforming of CPT's existing gas station network and build trial battery swap stations within the Company's sales network. The two parties plan to renovate and reform 300-500 CPT's gas stations in the next three years.\nMr. Zhang, CEO, Director and Chairman of Jiuzi Holdings, Inc, commented: \"We are delighted to work with CPT on our EV technology and battery swap facilities initiative. Currently, electric vehicles are mostly charged at privately owned charging points or via scattered power supply facilities in China. With the rapidly increasing number of EVs and limited parking space, transition to a centralized fast charging or battery swap station network becomes paramount.\"\n\"We are confident that the cooperation with CPT will spearhead the development and construction of battery charging and swap facilities in not only our sales channel, but also larger geographic coverage across China. This move coincides with overall national policies, which encourage green commute and aim to pursue a carbon-neutral goal in the future.\"\n\"A battery swap station with 25 batteries can generate over RMB 5 million revenue per year with only half of its utilization capacity. Deducting electricity, depreciation and labor costs, we estimate an annual profit of RMB 1.5-2 million per station, which will significantly boost to our future operating and financial performance,\" Zhang added.\nMr. Jie, CEO of CPT, also commented: \"CPT i...