Jiuzi Shares Soar After Signing Partnership With China Petrol Technology For Battery Swap Stations - Jiuzi Hldgs (NASDAQ:JZXN)

New energy vehicles franchisor and retailer Jiuzi Holdings Inc JZXN has signed a letter of intent with China Petrol Technology Limited (CPT) to jointly build battery swap stations and battery management systems for electric vehicles (EV) across China.
Jiuzi and CPT will jointly invest up to $77.5 million (1$ = 6.45 CNY as of July 14) within three years on the EV technology R&D, and products offerings cover multi-standard EV battery swap station, battery management system, and software.
The companies will also start working on reforming CPT's existing gas station network and building trial battery swap stations within Jiuzi’s sales network.
The two parties plan to renovate and reform 300-500 CPT's gas stations in the next three years.
"A battery swap station with 25 batteries can generate over RMB 5 million revenue per year with only half of its utilization capacity. Deducting electricity, depreciation and labor costs, we estimate an annual profit of RMB 1.5-2 million per station, which will significantly boost to our future operating and financial performance," said Zhang, CEO, Director and Chairman of Jiuzi.
Price action: JZXN shares are trading higher by 34.6% in $6.33 premarket on the last check Wednesday.