Jiuzi Holdings and Shenzhen Maigesong Terminate Negotiations to Focus on Future Growth
Jiuzi Holdings (NASDAQ: JZXN) announced the termination of acquisition negotiations with Shenzhen Maigesong Electric Technology. The parties failed to reach consensus on cooperation model, resource integration, and strategic objectives. Initially, JZXN planned to fully acquire Shenzhen Maigesong to support lithium battery production and market expansion. Despite the termination, JZXN views the experience as valuable for understanding industry trends and evaluating high-potential projects. The company remains focused on advancing in the renewable energy sector, driving innovation, and pursuing global expansion while maintaining its core business of franchising and operating 51 franchise stores and one company-owned store selling New Energy Vehicles in China.
Jiuzi Holdings (NASDAQ: JZXN) ha annunciato la cessazione delle trattative per l'acquisizione di Shenzhen Maigesong Electric Technology. Le parti non sono riuscite a raggiungere un consenso sul modello di cooperazione, l'integrazione delle risorse e gli obiettivi strategici. Inizialmente, JZXN aveva pianificato di acquisire completamente Shenzhen Maigesong per sostenere la produzione di batterie al litio e l'espansione del mercato. Nonostante la conclusione delle trattative, JZXN considera l'esperienza come preziosa per comprendere le tendenze dell'industria e valutare progetti ad alto potenziale. L'azienda rimane concentrata sul progresso nel settore delle energie rinnovabili, guidando l'innovazione e perseguendo l'espansione globale, mantenendo al contempo il proprio core business di franchising, operando 51 negozi in franchising e un negozio di proprietà che vende Veicoli a Nuova Energia in Cina.
Jiuzi Holdings (NASDAQ: JZXN) anunció la terminación de las negociaciones para la adquisición de Shenzhen Maigesong Electric Technology. Las partes no lograron llegar a un consenso sobre el modelo de cooperación, la integración de recursos y los objetivos estratégicos. Inicialmente, JZXN planeaba adquirir completamente Shenzhen Maigesong para apoyar la producción de baterías de litio y la expansión del mercado. A pesar de la terminación, JZXN considera que la experiencia es valiosa para entender las tendencias de la industria y evaluar proyectos de alto potencial. La compañía sigue enfocada en avanzar en el sector de energías renovables, impulsar la innovación y perseguir la expansión.global, mientras mantiene su negocio principal de franquicias, operando 51 tiendas franquiciadas y una tienda propia que vende Vehículos de Nueva Energía en China.
Jiuzi Holdings (NASDAQ: JZXN)은 Shenzhen Maigesong Electric Technology와의 인수 협상이 종료되었음을 발표했습니다. 양측은 협력 모델, 자원 통합, 전략적 목표에 대한 합의를 도출하지 못했습니다. 처음에 JZXN은 리튬 배터리 생산 및 시장 확장을 지원하기 위해 Shenzhen Maigesong을 완전히 인수할 계획이었습니다. 협상 종료에도 불구하고, JZXN은 이 경험을 산업 동향 이해와 높은 잠재력을 가진 프로젝트 평가에 있어 가치 있는 것으로 보고 있습니다. 회사는 재생 가능 에너지 분야에서의 진전을 계속 집중하고 혁신을 주도하며 글로벌 확장을 추구하고 있으며, 동시에 중국에서 51개의 프랜차이즈 매장과 1개의 직영 매장에서 신에너지 차량을 판매하는 핵심 비즈니스를 유지하고 있습니다.
Jiuzi Holdings (NASDAQ: JZXN) a annoncé la cessation des négociations d'acquisition avec Shenzhen Maigesong Electric Technology. Les parties n'ont pas réussi à parvenir à un consensus sur le modèle de coopération, l'intégration des ressources et les objectifs stratégiques. Au départ, JZXN prévoyait d'acquérir complètement Shenzhen Maigesong pour soutenir la production de batteries au lithium et l'expansion du marché. Malgré cette cessation, JZXN considère l'expérience comme précieuse pour comprendre les tendances du secteur et évaluer les projets à fort potentiel. L'entreprise reste concentrée sur sa progression dans le secteur des énergies renouvelables, sur l'innovation et sur la poursuite de son expansion mondiale, tout en maintenant son activité principale de franchise, gérant 51 magasins franchisés et un magasin appartenant à l'entreprise vendant des Véhicules à Nouvelle Énergie en Chine.
Jiuzi Holdings (NASDAQ: JZXN) gab die Beendigung der Akquisitionsverhandlungen mit Shenzhen Maigesong Electric Technology bekannt. Die Parteien konnten sich nicht auf ein Kooperationsmodell, die Ressourceneintegration und strategische Ziele einigen. Ursprünglich plante JZXN, Shenzhen Maigesong vollständig zu übernehmen, um die Produktion von Lithiumbatterien und die Markterweiterung zu unterstützen. Trotz der Beendigung betrachtet JZXN die Erfahrung als wertvoll, um die Branchentrends zu verstehen und vielversprechende Projekte zu bewerten. Das Unternehmen bleibt darauf fokussiert, im Bereich erneuerbare Energien voranzukommen, Innovationen voranzutreiben und eine globale Expansion anzustreben, während es sein Kerngeschäft des Franchisings beibehält und 51 Franchiseflächen sowie einen Unternehmensstandort für den Verkauf von Neuen Energiefahrzeugen in China betreibt.
- Company maintains strong retail presence with 51 franchise stores and one company-owned store
- Demonstrates strategic decision-making by avoiding potentially unfavorable acquisition
- Failed acquisition attempt could impact growth plans in lithium battery production
- Missed opportunity to expand market reach through strategic acquisition
Insights
The termination of acquisition talks between JZXN and Shenzhen Maigesong represents a significant strategic shift for this micro-cap company. With a market cap of just
The company's focus on third and fourth-tier Chinese cities with only 52 total stores (51 franchised, 1 company-owned) shows a niche market strategy. The termination of this deal, which would have added battery production capabilities, leaves JZXN dependent on external NEV manufacturers and may limit its ability to capture more value in the supply chain. Investors should note that without vertical integration opportunities, JZXN's growth potential remains constrained by its current business model.
Shenzhen, China, Nov. 22, 2024 (GLOBE NEWSWIRE) -- Jiuzi Holdings Inc. (NASDAQ: JZXN; the "Company" or “JZXN”), recently announced the amicable termination of acquisition negotiations with Shenzhen Maigesong Electric Technology Co., Ltd. ("Shenzhen Maigesong"). Although the proposed collaboration will not proceed, the experience has been a valuable step in JZXN’s exploration of opportunities in the renewable energy sector, providing fresh insights and momentum for the Company’s future development.
JZXN had previously planned to fully acquire Shenzhen Maigesong to support the development of its lithium battery production line and expand its market reach. However, after multiple rounds of discussions, the parties were unable to reach a consensus on critical issues, including the cooperation model, resource integration approach, and strategic objectives. Guided by its commitment to aligning major decisions with its long-term development strategy, JZXN decided to terminate the discussions.
The Company stated that, despite the conclusion of the talks, the process provided invaluable lessons. It strengthened JZXN’s understanding of industry trends, optimized its approach to resource allocation, and enhanced its ability to evaluate the feasibility of high-potential projects. This experience underscores JZXN’s dedication to professional, strategic decision-making and high-quality growth.
Looking ahead, JZXN remains steadfast in its commitment to advancing the renewable energy sector. The Company plans to deepen its focus on core competencies, drive innovation, and accelerate global expansion efforts. By continuously seeking strategic partnerships aligned with its long-term vision, JZXN aims to enhance its competitive edge and deliver greater value to shareholders, partners, and customers.
This decision reflects JZXN’s forward-thinking strategy and ability to adapt to evolving market dynamics. The Company remains optimistic about future opportunities and is open to exploring potential collaborations that can contribute to sustainable development.
JZXN will continue to leverage its experience and insights to strengthen its position in the renewable energy industry, demonstrating resilience and focus in its pursuit of long-term success.
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 and fourth-tier cities in China. The Company mainly sells battery-operated electric vehicles and sources NEVs through more than twenty NEV manufacturers. It has 51 operating franchise stores and one company-owned store. For more information, visit the Company's website at http://www.zjjzxny.cn/.
Forward-Looking Statements
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. They are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs, including the expectation that the Offering will be completed. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Specifically, forward-looking statements may include statements related to the following matters of the Company:
Ability to implement its business plan;
Changes in the Company's product and service market; and
Expansion plans and opportunities.
These forward-looking statements are based on information available as of the date of this press release and our management's current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including the occurrence of any event, change or other circumstances that could give rise to the terms of the LOI 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 LOI following announcement of the LOI and transactions contemplated therein; the ability of the Company to meet NASDAQ listing standards in connection with the consummation of the transaction contemplated therein; the inability to complete the transactions contemplated by the LOI due to the failure to meet certain closing conditions; risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the announcement of the LOI and consummation of the transaction described therein; costs related to the proposed acquisition; changes in applicable laws or regulations; the ability of the combined company to meet its financial and strategic goals, due to, among other things, competition, the ability of the combined company to grow and manage growth profitability, maintain relationships with customers and retain its key employees; the possibility that the combined company may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission by the Company. The Company undertakes no obligation to update forward-looking statements to reflect subsequent events, circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Contact information:
+86 13873361680
Email address: jackywen@jzxn.com,
SOURCE Jiuzi New Energy Holding Group Co., Ltd.
FAQ
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