Benzinga | Jul 19, 2021 08:14AM EDT

Jiuzi Holdings, Inc. Signs Strategic Agreement with Chongqing Ruichi Automobile Industry Co., Ltd.; Co. Announces 'Ruichi will supply 500 logistics vehicles to JZXN during the initial term, and conduct sales at the Company's chain stores'

Jiuzi Holdings, Inc. (NASDAQ:JZXN, the &quot, Company&quot, ))), a new energy vehicles franchisor and retailer under the brand name "Jiuzi" in China, today announced that it entered into a strategic cooperation agreement with Chongqing Ruichi Automobile Industry Co., Ltd. ("Ruichi") on June 25, 2021.

Pursuant to the agreement, Ruichi will supply 500 logistics vehicles to JZXN during the initial term, and conduct sales at the Company's chain stores. JZXN and Ruichi will seek bilateral gains via resource sharing and forming complementary business advantages. Amidst the robust growth of the new energy vehicle industry, the two companies will jointly build a clean, green, safe, and efficient industrial production chain that will further contribute to the development of the new energy vehicle industry.

Mr. Shuibo Zhang, CEO of JZXN, commented: "It is of great significance for JZXN to reach an agreement with Ruichi, a leading enterprise in the field of new energy logistics vehicles. In 2020, Ruichi was the top seller of new energy logistics vehicles in China, emulating the combined sales of the second and third place sellers. Ruichi has also ranked first in sales for ten consecutive months since March 2020, according to data published by the Chinese Association of Automobile Manufacturers. Additionally, among the 97 new energy logistics vehicle enterprises in China, Ruichi is the only one to reach a sales volume of over 10,000 vehicles. Accounting for 17.51% of market sales with 10,165 in vehicle sales, Ruichi is far ahead of any other new energy logistics vehicle enterprises.

"JZXN has created a novel retail model for new energy vehicles in its headquarter in Hangzhou by merging sales channels, such as combining online and offline platforms, and showcasing multiple brands in our stores. Currently, JZXN has 31 stores in China, with more than 100 new stores under construction to create a marketing network that covers 34 cities in China. We believe our network will grant Ruichi and other manufacturers easy access to the new energy automobile market," Mr. Zhang added.

A key feature of new energy vehicles in the 2.0 era is the integration of electric-power and intelligent networking. The production and sales of new energy vehicles continue to maintain good overall momentum by showing substantial growth in recent years. The sale of commercial vehicles, specifically, has maintained a high level of growth.

The ongoing scientific and technological development and the evolution of energy resources leave room for the growth in the new energy vehicle industry. Furthermore, as a number of domestic enterprises begin to increase the production of new energy vehicles, there has been an increase in diversity and specialization in the companies that contribute to the expansion of the industry. As a pioneer in the industry, JZXN has focused on building a symbiotic system that integrates the experience of shopping at a brick-and-mortar store with an online customer service platform. The store + service platform relies on big data to create a novel new energy vehicle trading ecosystem that allows consumers to access a new energy vehicle marketplace from the convenience of their homes.