Benzinga | Sep 29, 2021 08:24AM EDT

Jiuzi Holdings, Inc. Signs Strategic Cooperation Agreement with Shaanxi Tongjia Auto Co., Ltd.

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 on September 19, 2021, it has entered into a strategic cooperation agreement with Shaanxi Tongjia Auto Co., Ltd. ("Tongjia"), a well-known automobile brand of Shaanxi Automobile Group Co., Ltd.

Pursuant to the agreement, Tongjia will deliver to JZXN 2000 new energy vehicles, including its best-selling electric delivery vehicle, Electric OX II, which will be sold via the Company's retail stores throughout 2021 and 2022. In the early stage, the Company, through its wholly-owned subsidiary Hangzhou Zhitongche Technology Co., Ltd., will provide a loan of RMB20 million to Tongjia's authorized dealers for working capital, which could be gradually increased depending on the actual operations. Both parties will use their resource sharing and respective advantages to jointly create a clean, green, safe and efficient industrial production chain to meet customers' needs in the rapidly growing new energy vehicles industry in China.

Mr. Shuibo Zhang, CEO, Director and Chairman of Jiuzi Holdings, Inc., commented: "We are very excited to establish this strategic cooperation partnership with Tongjia in addition to the cooperation arrangements made with Chongqing Ruichi Automobile Industry Co., Ltd. and Hemei Auto Holdings Co. Ltd., as announced in the past few months. Tongjia is one of the largest new energy vehicles manufacturers as well as retailers in Northwest China. It has strategically chosen to solely work on new energy vehicles production and made impressive progress in developing new vehicle models that contributed to its rapid expansion in recent years. I am confident that this cooperation will be impactful in the new energy vehicle industry in 2022."

"JZXN has been in a leading position in the new energy vehicles market in China. In order to maximize our strength, we have chosen to cooperate with Tongjia to take full advantage of its operation resources. Both parties will work closely to offer more new energy vehicles to our customers and achieve the market demand. This collaboration will bring great opportunities in expanding our market in China's third and fourth tier cities. I have confidence in the Company's bright future as we have integrated both online and offline services, and developed multi-brand sales system, which, along with our one-stop vehicle shopping solutions business model, will help accelerate the growth of the new energy vehicle industry in the years ahead." Mr. Zhang added.