Press Release

Jiuzi Holdings, Inc. signs strategic cooperation agreement with electric vehicle manufacturer in China

Jiuzi Holdings, Inc., a new energy vehicles franchisor and retailer under the brand name “Jiuzi” in China, announced that, on January 6, 2021, the Company, through its wholly-owned subsidiary, Zhejiang Jiuzi New Energy Vehicles Co., Ltd., has entered into a one-year strategic cooperation agreement with Jiangsu Jemmell New Energy Vehicle Industry Co., Ltd., a leading Chinese electric vehicle maker and battery assembler.

Pursuant to the Agreement, Zhejiang Jiuzi is granted non-exclusive right to sell the “LINGBOX” series electric vehicles produced by Jemmell during 2022-2023. Zhejiang Jiuzi plans to purchase up to 5,000 vehicles from both mass-production models and customized models from Jemmell. In return, Jemmell will offer preferential sales policies to Zhejiang Jiuzi customers, who will also comply with sales restrictions to avoid competition against Jemmell outlined in the Agreement, including to avoid promotion activities for LINGBOX cars via the same sales channels or regions covered by Jemmell. Nonetheless, Zhejiang Jiuzi is allowed to sell customized models via its own sales channels, which mostly involve delivery to clients’ doorstep through cooperation with relevant transport service platforms.

The two parties will also work proactively to propose new initiatives to implement their respective strategic plans, fulfill business goals, and achieve win-win business results. Zhejiang Jiuzi and Jemmell will support each other’s business development, protect each other’s brand image and seek to expand scope of collaboration.

Mr. Shuibo Zhang, CEO of Jiuzi Holdings, Inc., commented: “We expect this cooperation with Jemmell to serve as the blueprint for us to continue to accelerate our sales growth in China. Our collaboration has a great deal of upside and could potentially bring about RMB60 million sales to our company and create great values for shareholders. We expect this to be another important growth driver for our business.”

“By leveraging Jemmell’s brand recognition among customers and relationships with the electric vehicle industry, we can more quickly build the Jiuzi brand to both distribute electric vehicles and accelerate growth in sales and profitability. We are very excited about this strategically important step ahead of us and will remain focused on building upon the sales and customer momentum we have established in the past.”

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