Benzinga | Jul 14, 2021 09:15AM EDT

Jiuzi Shares Soar After Signing Partnership With China Petrol Technology For Battery Swap Stations

* New energy vehicles franchisor and retailer Jiuzi Holdings Inc (NASDAQ:JZXN) has signed a letter of intent with China Petrol Technology Limited (CPT) to jointly build battery swap stations and battery management systems for electric vehicles (EV) across China.

* Jiuzi and CPT will jointly invest up to $77.5 million (1$ = 6.45 CNY as of July 14) within three years on the EV technology R&D, and products offerings cover multi-standard EV battery swap station, battery management system, and software.

* The companies will also start working on reforming CPT's existing gas station network and building trial battery swap stations within Jiuzi's sales network.

* The two parties plan to renovate and reform 300-500 CPT's gas stations in the next three years.

* "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," said Zhang, CEO, Director and Chairman of Jiuzi.

* Price action: JZXN shares are trading higher by 34.6% in $6.33 premarket on the last check Wednesday.