Jiuzi Signs LoI to Distribute Baoneng Auto's Electric Cars

Jiuzi Holdings, Inc. announced that its operating entity, Hangzhou Zhitongche Technology Limited (Zhitongche), has entered into a Letter of Intent with Kunshan Baoneng Auto Sales Co., Ltd (Kunshan Baoneng), the subsidiary of Baoneng Auto Group Ltd. (Baoneng Auto).

Pursuant to the LOI, Zhitongche intends to distribute Baoneng Auto's 'Youbaoli' brand electric cars in Zhejiang Province and enjoys supplies at priority in all major cities of Zhejiang, including Hangzhou, Ningbo, Wenzhou, Jiaxing, Huzhou, Shaoxing, Jinhua, Quzhou, Zhoushan, Taizhou, and Lishui. The parties expect to enter into definitive agreement in September 2022.

Baoneng Auto was established in 2017 by Baoneng Investment Group, a well-known Chinese property and finance conglomerate. Baoneng Group entered the automotive industry aiming to develop new energy vehicles. This strategic move was made in the context of the Chinese government's steady support for the development of NEV and the rapid growth of the NEV market in China.

"We look forward to becoming Baoneng Auto's regional distribution partner," said Mr. Shuibo Zhang, CEO of Jiuzi Holdings, Inc. "As China's leading NEV dealership group, Jiuzi not only has accumulated extensive experience in the retail field of new energy vehicle but also can provide an integrated solution in terminal sales management and supply chain management. We are delighted to witness that the Jiuzi brand has been recognized by over twenty NEV manufacturers, including Lingbox, Tongjia, Ruichi, Enovat, Letin, Pocco, Wuling Hongguang, Weltmeister, Sunra, Chery, HYCAN, Dongfeng EV, Nezha, Toyota Alpha, BAIC, BYD, GAC Trumpchi, Geely, and etc. Baoneng Auto will expand our brand portfolio and enhance our supply chain."

Mr. Qi Zhang, COO of Jiuzi Holdings, Inc., commented, "According to the statistics released by the China Passenger Car Association (CPCA), in the first quarter of 2022, the total sales of A0 class EV (mini passenger car) and A00 class EV (small passenger car) were 297,000 units or 27.8% of the total NEV market. Youbaoli brand targets the budget car consumers in 3^rd- 4^th- 5^th tier cities that fit Jiuzi's nationwide footprint. We are confident that Jiuzi will be one of the best distribution partners of Baoneng Auto, and we expect to expand our cooperation to other provinces in China."