Benzinga | Sep 15, 2021 08:04AM EDT

EZGO Reports Strategic Cooperation Deal With China Railway Construction Property Mgmt., No Terms Disclosed

EZGO Technologies Ltd. (Nasdaq: EZGO) ("EZGO" or "we", "our", or "the Company"), a manufacturer of two- and three-wheeled electric vehicles in China, today announced it entered into a strategic cooperation agreement with China Railway Construction Property Management Co., Ltd. ("CRCPM"), whereby EZGO and CRCPM plan to jointly develop and promote all-round intelligent property management services aiming to increase safety and security measures for residents of densely populated high-rise buildings and neighborhoods.

On June 21, 2021, the Ministry of Emergency Management of China issued the Regulations on Fire Safety Management of High-Rise Civil Buildings (the "Regulations"), effective on August 1, 2021. The Regulations prohibit parking or charging of electric bicycles in public halls, evacuation walkways, stairwells, and safety exits of high-rise civil buildings. The Regulations also encourage the establishment of centralized storage and charging areas for electric bicycles in high-rise residential communities.

Pursuant to the Regulations and the industry's overall efforts to improve general safety, EZGO and CRCPM have entered into this strategic cooperation agreement to leverage the technology advantages of EZGO and the management resources of CRCPM, with a goal of developing a comprehensive offering of intelligent property management service solutions. EZGO will provide products and related services such as unmanned patrol vehicles and smart charging piles , based on the needs of the specific communities under CRCPM management. The term of the cooperation agreement is five years, and the two parties plan to sign landing contracts based on specific cooperation for different business lines.

CRCPM is a mid- to high-end property management company serving clients across China. It has first-level qualifications for national property management and primarily engages in the management of mid- to high-end residential and commercial properties. CRCPM is a wholly owned subsidiary of China Railway Real Estate Group, which is a wholly owned subsidiary of China Railway Construction Corporation, a state-owned enterprise of China .

Management Commentary

Mr. Jianhui Ye, Chief Executive Officer of EZGO, stated, "We are excited to partner with CRCPM, which lays the foundation for our participation in large-scale intelligent property management services. We believe this cooperation with a major state-owned company is a testament to our commitment to quality and innovation and will open up opportunities for additional applications and scenarios of the Company's existing product offerings, providing a powerful boost to our strategy of developing diversified, intelligent services. Together with CRCPM, we anticipate approaching the joint development of these intelligent community property management service offerings with the utmost attention to superior quality and look forward to helping drive progress in safety and security standards in our communities."