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Zhejiang Jiuzi New Energy Automobile Co., Ltd.
Investment Hotline: 400-616-7222
Consulting WeChat: WXID_ NCUBW3PR7JXB22Headquarters address: Room 210, 2nd Floor, Building 8, No. 48, Jiuhuan Road, Jianggan District, Hangzhou City, Zhejiang Province
- Gross profit and margin were $3.12 million and 67.75%, respectively
- Net income was $1.31 million, turning around from net loss of $0.03 million for the same period in 2020
HANGZHOU, China, August 5, 2021 /PRNewswire/ -- Jiuzi Holdings, Inc. (NASDAQ: JZXN; the "Company"), a new energy vehicles franchisor and retailer under the brand name "Jiuzi" in China, today reports its financial results for the six months ended April 30, 2021.
First-Half 2021 Highlights:
Total Net revenues increased by 260.88% or $3.33 million from $1.28 million for the six months ended April 30, 2020 to $4.61 million for the six months ended April 30, 2021.
Gross profit and gross profit margin were $3.12 million and 67.75% for the six months ended April 30, 2021, as compared to $0.49 million and 38.05% for the same period in 2020.
Income from operations increased by $1.86 million and was turned around from loss from operations of $0.04 million for the six months ended April 30, 2020 to $1.81 million for the six months ended April 30, 2021.
Initial franchise fee increased by 369.19% or $3.61 million from $0.98 million for the six months ended April 30, 2020 to $4.59 million for the six months ended April 30, 2021.
The Company has entered into franchise agreements with 86 franchisees as of April 30, 2021, as compared to 47 as of April 30, 2020.
Net income increased by $1.34 million and was turned around from net loss of $0.03 million for the six months ended April 30, 2020 to net income of $1.31 million for the six months ended April 30, 2021.
For the six months ended April 30
($ millions, except per share data, differences due to rounding) 2021 2020 % Change
Total net revenues $4.61 $1.28 260.88%
Cost of revenues $1.49 $0.79 87.89%
Gross profit $3.12 $0.49 542.51%
Gross profit margin 67.75% 38.05% 29.70%
Income from operations $1.81 ($0.04) 4133.13%
Net income (loss) $1.31 ($0.03) 4815.59%
Earnings (loss) per share – Basic and Diluted $0.09 ($0.02) 550.00%
Mr. Shuibo Zhang, CEO of JZXN commented: “Thanks to our highly qualified and motivated workforce, the Company managed to deliver an outstanding financial performance and achieved a great turnaround from the period when Covid-19 hit the electric vehicle industry.
“As a dedicated participant in the new energy vehicle sector, JZXN expects that the EV shift is getting closer and will ensure the enduring success of the Company to safeguard its profitability targets. During the half year period, we formed partnerships with industry leaders to boost business development. We also aim to build an online-offline operating system to empower our franchisees to further driving up our sales growth. With an innovative one-stop vehicle sales model, we are convinced that the Company will be successful in the exciting electric vehicle era that is soon coming,” he said.
Mr. Francis Zhang, Chief Financial Officer, commented, "We were able to deliver strong development momentum as we turned net loss to a net income of $1.31 million and our net revenues reached $4.61 million during the six months ended April 30, 2021 despite the fact that the COVID-19 pandemic had an adverse impact on the economic activities in China and the world. Looking ahead, we remain committed to expanding the scale of sales and business operation, promoting new development strategies, and further accelerating the integration of our existing business and new growth points initiated both through our in-house expansion strategies and via partnerships with industry peers. We believe the above measures will lay a solid foundation for our profitability in the long run."
First-Half 2021 Financial Results
The following table lists the calculation methods of gross profit and gross profit margin of each type of revenue:
For the six months ended
April 30, Changes
($ millions, differences due to rounding) 2021 2020 Amount %
New energy vehicle sales
Net revenue $ 0.02 0.30 (0.28 ) (92.58 )%
Cost of revenue 0.01 0.30 (0.29 ) (98.10 )%
Gross profit $ 0.02 0.003 0.01 384.18 %
Gross profit margin 74.75 % 1.15 % 73.60 % 6,400 %
Franchise initial fees
Net revenue $ 4.59 0.98 3.61 369.19 %
Cost of revenue 1.48 0.50 0.98 199.15 %
Gross profit $ 3.11 0.48 2.62 543.63 %
Gross profit margin 67.71 % 49.36 % 18.35 % 37.18 %
Net revenue $ -
Pursuant to the agreement, Ruichi will supply 500 logistics vehicles to JZXN during the initial term, and conduct sales at the Company's chain stores. JZXN and Ruichi will seek bilateral gains via resource sharing and forming complementary business advantages. Amidst the robust growth of the new energy vehicle industry, the two companies will jointly build a clean, green, safe, and efficient industrial production chain that will further contribute to the development of the new energy vehicle industry.
Mr. Shuibo Zhang, CEO of JZXN, commented: "It is of great significance for JZXN to reach an agreement with Ruichi, a leading enterprise in the field of new energy logistics vehicles. In 2020, Ruichi was the top seller of new energy logistics vehicles in China, emulating the combined sales of the second and third place sellers. Ruichi has also ranked first in sales for ten consecutive months since March 2020, according to data published by the Chinese Association of Automobile Manufacturers. Additionally, among the 97 new energy logistics vehicle enterprises in China, Ruichi is the only one to reach a sales volume of over 10,000 vehicles. Accounting for 17.51% of market sales with 10,165 in vehicle sales, Ruichi is far ahead of any other new energy logistics vehicle enterprises.
"JZXN has created a novel retail model for new energy vehicles in its headquarter in Hangzhou by merging sales channels, such as combining online and offline platforms, and showcasing multiple brands in our stores. Currently, JZXN has 31 stores in China, with more than 100 new stores under construction to create a marketing network that covers 34 cities in China. We believe our network will grant Ruichi and other manufacturers easy access to the new energy automobile market," Mr. Zhang added.
A key feature of new energy vehicles in the 2.0 era is the integration of electric-power and intelligent networking. The production and sales of new energy vehicles continue to maintain good overall momentum by showing substantial growth in recent years. The sale of commercial vehicles, specifically, has maintained a high level of growth.
The ongoing scientific and technological development and the evolution of energy resources leave room for the growth in the new energy vehicle industry. Furthermore, as a number of domestic enterprises begin to increase the production of new energy vehicles, there has been an increase in diversity and specialization in the companies that contribute to the expansion of the industry. As a pioneer in the industry, JZXN has focused on building a symbiotic system that integrates the experience of shopping at a brick-and-mortar store with an online customer service platform. The store + service platform relies on big data to create a novel new energy vehicle trading ecosystem that allows consumers to access a new energy vehicle marketplace from the convenience of their homes.
About Chongqing Ruichi Automobile Industry Co., Ltd.
Chongqing Ruichi Automobile Industry Co., Ltd., was founded in September 2003, and is a wholly-owned subsidiary of Chongqing Xiaokang Industrial Group Co., Ltd. The company specializes in R & D, manufacturing, sales, and service of electric commercial vehicles. It is one of the first enterprises to reach the national pure electric vehicle production quality standard. It has well-equipped and advanced stamping, welding, and painting technology in its assembly workshop as well as an advanced vehicle and electric drive system testing line. Ruichi's products include transport vans, urban multi-function vehicles, and specialized commercial vehicles such as police cars, ambulances, and postal trucks. The company is committed to become a leading brand in the field of intelligent electric vehicles. For more information, please visit: http://www.rc-ev.com/
About Jiuzi Holdings, Inc.
Jiuzi Holdings, Inc., headquartered in Hangzhou, China, and established in 2017, franchises and operates retail stores under the brand name "Jiuzi" to sell New Energy Vehicles ("NEVs") in third-fourth tier cities in China. The Company majorly sells battery-operated electric vehicles, and sources NEVs through more than twenty NEV manufacturers. It has 31 operating franchise stores and one company-owned store. For more information, visit the Company's website at http://www.zjjzxny.cn/.
All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial t