Jiuzi Holdings, Inc. (JZXN), a leading new energy vehicle (NEV) dealership group under the brand name "Jiuzi" in China, today announced that its subsidiary, Hangzhou Jiuyao New Energy Automobile Technology Co. Ltd. ("Jiuyao") has entered into an extension agreement ("Extension Agreement") with Chongqing Dongfeng Fengon Automobiles Sales Co., Ltd. ("Chongqing Fengon"), a subsidiary of Dongfeng Sokon Motor Co., Ltd. ("DFSK Motor").
Pursuant to a purchase agreement ("Purchase Agreement") signed by Jiuyao and Chongqing Fengon dated August 2, 2022, Jiuyao would purchase 5,000 micro electric passenger cars customized for Jiuyao ("Jiuyao Mini EV") from Chongqing Fengon by December 28, 2022. However, due to the impact of the Covid-19 outbreak in China, delivery and sales fell behind the schedule. Considering mutual interest, the two parties have agreed to extend the original purchase deadline for six months, or, from December 28, 2022 to June 30, 2023. Under the Extension Agreement, the two parties have also agreed that the Purchase Agreement will include the trade of Jiuyao MPV, which was launched in October 2022.
Jiuyao MPV is custom-made vehicle based on Dongfeng Fengon's MPV model "Fengon 380." The customized version has an extra-large space of 5 cubic meters. It is equipped with BYD's superior blade battery, enabling Jiuyao MPV's CLTC, or the China Light-Duty Vehicle Test Cycle to range up to 310km. Since Jiuyao MPV has gained considerable accolades from the market, the Company plans to further launch an upgraded version in the first half of 2023. The new version will be installed with an extended-range battery, which allows the CLTC range to increase to 351km. Meanwhile, the battery can also be swapped so that Jiuyao MPV owners can change out dead or dying batteries for fully charged ones in a matter of minutes.
"We are pleased to see that we have extended the contract with Fengon. It is an important recognition of Jiuzi's industry position and brand image in the domestic new energy vehicle retail market," said Mr. Shuibo Zhang, CEO of Jiuzi Holdings, Inc. "We are impressed with Fengon's state-of-the-art technology, strong middle platform and back-office service capabilities. The success of our two custom-made models will strengthen our confidence to implement our new strategy to play a key role in connecting the automakers and the traditional car dealerships."
