Jiuzi Holdings (NASDAQ:JZXN) Stock Takes a Hit: A Good Buy Now?
New energy vehicles franchisor and retailer Jiuzi Holdings (NASDAQ:JZXN) on 14thJuly, 2021 announced signing letter of intent with China Petrol Technology Limited for jointly building battery swap stations as well as battery management system throughout China. The signing ceremony was attended by WeizhaoJie, CEO of CPT and Shuibo Zhang, Chairman of the Company.
Jiuzi and CP will be investing up to RMB 500 million in the next three years on EV technology R&D as well as product offerings including cover multi-standard EV battery swap station, software as well as battery management system. The two firms will commence work on transforming CPT’s existing gas station network and also build trial battery swap stations besides renovating and reforming 300-500 CPT’s gas stations in the next three years.
Mr. Zhang, CEO, Director and Chairman of Jiuzi Holdings, Inc said that current electric vehicles are done through private charging or scattered facilities in the country but the transition to a more centralized fast charging or battery swap station network will become vital. Zhang added that the move coincides with overall national policies, encouraging green commute and building a carbon-neutral goal in future. He further said that swap station with 25 batteries can generate over RMB 5 million revenue per year with only half of its utilization capacity.
Mr. Jie, CEO of CP said that the company is already serving over 70 million vehicle owners and 10,000 gas stations across China and this partnership will provide growth opportunities in China’s third and fourth tier cities. He also said that the cooperation will be perfect opportunity for the two to transition to green, low-carbon services.
Market Reaction:
On Friday, JZXN stock slumped 13.25% at $4.19 with more than 1.41 million shares, compared to its average volume of 3.09 million shares. The stock has moved within a range of $ 4.1500 – 4.6599 after opening the trade at $4.65. Over the past 52-week, the stock has been trading within a range of $4.1500 – 49.0100.