Happiness Development Entered into Agreement for Sales up to 2000 Electric Vehicles

Rhea-AI Summary

Happiness Development Group Limited (HAPP) announced a strategic cooperation with Fujian Yiluba Automobile Service Consulting Co., Ltd. (168) for the purchase of up to 2,000 new energy vehicles over three years. The potential value of this agreement is around RMB200 million (about $30 million). This collaboration highlights HAPP's expanding presence in the automobile market, especially as 168 aims to enhance its operations with online ride-hailing platforms like Didi in Fujian. HAPP's CEO expressed optimism regarding increased orders and future business growth.

Positive

• Strategic agreement with Fujian Yiluba for potential sales of 2,000 vehicles, valued at RMB200 million ($30 million).
• Expansion of automobile business recognized by major industry players, enhancing potential market position.

Negative

• None.

NANPING, China, May 25, 2022 /PRNewswire/ -- Happiness Development Group Limited ("HAPP" or the "Company"), (NASDAQ: HAPP) an emerging and diversified company engaging in the business of production and sale of nutraceutical and dietary supplements, providing e-commerce sales and marketing solutions, and the sales of automobile today announced that its automobile sales subsidiary 'Taochejun" has entered into a strategic cooperation agreement with Fujian Yiluba Automobile Service Consulting Co., Ltd. ("168"). According to the cooperation agreement, over the next three years, 168 plans to purchase from Taochejun up to 2,000 new energy vehicles. If 168 purchases all of the 2,000 vehicles, the total value would be about RMB200 million (approximately $30 million).

Yichebao Development Co., Ltd., the parent company of 168, has been cultivating its automobile industry chain in China for many years, especially in the parallel import automobile industry. As a wholly-owned subsidiary of Yichebao in Fujian, 168's focus is to cooperates with the online ride hailing platforms such as Didi to expand its Fujian market.

"168 is another large auto company we plan to cooperate with, while previously we have announced the cooperation with Ruili and Shanghai Automobile Trading (Chexiang.com). Taochejun's brand and its distribution ability are being recognized by a number of car manufacturers, large auto trading companies, and now a large auto service company. We believe that with the increasing orders, HAPP's automobile business will achieve optimistic results for the following years," said Mr. Xuezhu Wang, CEO of the Company.

About Happiness Development Group Limited

Headquartered in Nanping, China, Happiness Development Group Limited currently has three business lines: nutraceutical and dietary supplements, e-commerce and automobile sales. The nutrition and dietary supplements business is focusing on the research, development, manufacture and marketing of various products made from Chinese herbal extracts and other ingredients. Our e-commerce business focuses on offering e-commerce solutions, including advertising and information technology services to small and medium-sized enterprises in China. We also run our online stores which carries our products of dietary supplements and other selected products sourced from the small and medium-sized enterprises in China. Our mission for the e-commerce business is to enable small and medium-sized enterprises to fully leverage the power of e-commerce to grow rapidly. Our automobile sales adopts B2B business model and is committed to optimizing the automobile supply chain by offering standardized vehicle sources on our automobile online sales platform and providing secure transaction environment, automobile procurement and financial services for automobile manufacturers. For more information, please visit: www.happ.org.cn

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the occurrence of any event, change or other circumstances that could give rise to the terms of the Agreement not hereafter being memorialized in a definitive agreement; the outcome of any legal proceedings that have been, or will be, instituted against the Company or other parties to the Agreement following announcement of the Agreement and transactions contemplated therein; the inability to complete the transactions contemplated by the Agreement due to unsatisfied closing conditions; risks that the proposed transaction disrupts current plans and operations as a result of the announcement of the Agreement and consummation of the transaction described therein; costs related to the proposed transactions contemplated by the Agreement; changes in applicable laws or regulations; and other risks and uncertainties described herein, as well as those risks and uncertainties contained in reports filed by the Company with the Securities and Exchange Commission.  For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

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SOURCE Happiness Development Group Limited

FAQ

What is the significance of HAPP's recent agreement with Fujian Yiluba?

HAPP's agreement with Fujian Yiluba could generate up to RMB200 million in sales from 2,000 new energy vehicles over three years.

How many vehicles is HAPP planning to sell to Fujian Yiluba?

HAPP plans to sell up to 2,000 new energy vehicles to Fujian Yiluba.

What is the total expected value from the agreement between HAPP and Fujian Yiluba?

The total expected value from the cooperation agreement is approximately RMB200 million, or $30 million.

What does the strategic partnership with Fujian Yiluba indicate for HAPP's future?

The partnership suggests that HAPP is strengthening its position in the automobile industry, with optimistic expectations for future business growth.

When was the agreement between HAPP and Fujian Yiluba announced?

The agreement was announced on May 25, 2022.