BAIYU Holdings, Inc. ("BAIYU") (Nasdaq: BYU), a leading B2B bulk commodity e-commerce platform and supply chain service provider, today announced that on May 20, 2024, the Company entered into a memorandum of understanding (the "MoU") with certain industry experts (the "Partners") to explore new energy vehicle ("NEV") projects and international market ventures. This strategic move reflects BAIYU's ambition to expand into the rapidly growing and promising global NEV market.
According to the MoU, BAIYU and the Partners intend to conduct the new business through Electra New Energy Vehicle, Inc. ("ENEV"), a U.S.-registered company based in Los Angeles specializing in the NEV sector. BAIYU and the Partners anticipate holding 60% and 40% equity interests in ENEV, respectively. Both parties plan to collaborate to establish a prominent NEV brand. BAIYU expects to potentially invest a total of US$3 million in ENEV as operational capital over the next three years.
Under the MoU, BAIYU intends to oversee the daily operations and management of ENEV, encompassing procurement, manufacturing, supply chain, marketing, and financing for NEV prototypes, spare parts, charging piles, and energy storage equipment in China. The Partners aim to handle market development, order acquisition for NEVs, charging piles, and energy storage equipment in international markets, and secure overseas financing.
Ms. Renmei Ouyang, Chief Executive Officer of the Company, commented, "This cooperation has the potential to establish a new foundation for BAIYU to further expand its global presence in NEV sector. By synergizing our strengths in advanced technology, efficient operations, extensive market channels, and robust supply chains, we are poised to unlock significant opportunities through ENEV. We belive this partnership could deliver substantial value and sustainable growth, benefiting both parties and enhancing our leadership in the evolving NEV market landscape."
