- Technology enables taxis to exchange batteries, increasing time servicing passengers
- First delivery to begin in late Q2 2020, with up to 5,000 unit sales projected in 2020
- Target sales of 30,000 units, valued at approximately RMB 4 Billion or USD 562 Million with the balance of sales in 2021 through 2023
NEW YORK, May 22, 2020 /PRNewswire/ -- Ideanomics (NASDAQ: IDEX) ("Ideanomics" or the "Company"), Mobile Energy Global (MEG) division is pleased to announced that its Qingdao subsidiary Qingdao Chengyang Ainengju New Energy Sales and Service Co. has signed a framework strategic cooperation agreement with Zhejiang Qinou Holding Group Co., Ltd (Qinou Group). Under the terms of the agreement, MEG will provide Qinou Holdings with its S2F (sales to financing) capabilities, to facilitate the procurement and financing of the electric taxis and battery exchange systems.
Taxi fleet operators have been slow to convert to EVs due to the increased amount of time taxis have to spend offline to recharge. Qinou Group's battery exchange technology solves this challenge, enabling taxi operators to confidently adopt EV taxis and meet regulatory requirements. Qinou Group focuses on the operation of smart travel power exchange systems, facilitating quick and simple battery exchange, and is committed to the development and operation of the smart travel ecosystem. It provides a full suite of technical solutions, battery packs and battery replacement stations and charging stations developed through its CEMIBO SrL and CEMI Studio LLP subsidiaries in Bologna, Italy.
To help promote the partnership, MEG and Qinou Group will jointly market electric taxis with battery exchange capabilities in Zhejiang, Jiangsu, Sichuan, Shandong, Inner Mongolia, Shanxi, including some orders already secured by MEG. The marketing partnership intends to expand to other regions in the future. MEG and Qinou Group project sales of 30,000 units by 2023, valued at RMB 4 Billion (USD 562 million). The immediate sales projections are 50 units within Q2 2020, valued at approximately RMB 6.8 million (USD 1 million). For 2020, MEG and Qinou Group project up to 5,000 units, valued at approximately RMB 650 million (USD 91 million).
The US GAAP accounting treatment for the anticipated revenue from the above orders will not be finalized until the order transactions complete. Consequently, the revenue may be reported on a Gross or Net basis and some portion may be deferred to future accounting periods.
Ideanomics is a global company focused on facilitating the adoption of commercial electric vehicles and developing next generation financial services and Fintech products. Its electric vehicle division, Mobile Energy Global (MEG) provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity as well as financing and charging solutions. Ideanomics Capital includes DBOT ATS and Intelligenta which provide innovative financial services solutions powered by AI and blockchain. MEG and Ideanomics Capital provide our global customers and partners with better efficiencies and technologies and greater access to global markets.
The company is headquartered in New York, NY, and has offices in Beijing and Qingdao, China.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements". All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties, and include statements regarding our intention to transition our business model to become a next-generation financial technology company, our business strategy and planned product offerings, our intention to phase out our oil trading and consumer electronics businesses, and potential future financial results. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of risks and uncertainties, such as risks related to: our ability to continue as a going concern; our ability to raise additional financing to meet our business requirements; the transformation of our business model; fluctuations in our operating results; strain to our personnel management, financial systems and other resources as we grow our business; our ability to attract and retain key employees and senior management; competitive pressure; our international operations; and other risks and uncertainties disclosed under the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, and similar disclosures in subsequent reports filed with the SEC, which are available on the SEC website at www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Investor Relations and Media Contact
Tony Sklar, VP of Communications
55 Broadway, 19th Floor New York, New York 10006
View original content to download multimedia:http://www.prnewswire.com/news-releases/ideanomics-meg-signs-a-framework-strategic-agreement-with-smart-travel-technology-leader-qinou-group-301064264.html