Ideanomics' MEG Signs a Framework Strategic Agreement with Smart Travel Technology Leader, Qinou Group
- 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
May 22, 2020, 08:54 ET
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.
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