LOBO EV Technologies Expands Robotic Lawn Mower Business in the U.S. and Australia with Strategic Manufacturing and Distribution Agreement
LOBO EV Technologies (Nasdaq: LOBO) has signed a strategic manufacturing and distribution agreement with Capital Fortress Assets for robotic lawn mowers in the U.S. and Australian markets. Under the agreement, Capital Fortress will handle distribution and assembly of LOBO's products supplied in Complete Knock Down (CKD) form.
Key terms include exclusive distribution rights (excluding e-commerce), minimum sales commitment of $1 million or 1,500 units in the first 12 months, and comprehensive after-sales service. The partnership aims to optimize supply chain efficiency through local component manufacturing and enhance market penetration in these regions.
LOBO EV Technologies (Nasdaq: LOBO) ha firmato un accordo strategico di produzione e distribuzione con Capital Fortress Assets per i tosaerba robotici nei mercati statunitensi e australiani. Ai sensi dell'accordo, Capital Fortress gestirà la distribuzione e l'assemblaggio dei prodotti LOBO forniti in forma di Complete Knock Down (CKD).
I termini chiave includono diritti di distribuzione esclusivi (escludendo l'e-commerce), un impegno di vendita minima di 1 milione di dollari o 1.500 unità nei primi 12 mesi, e un servizio post-vendita completo. La partnership mira a ottimizzare l'efficienza della catena di approvvigionamento attraverso la produzione locale di componenti e a migliorare la penetrazione di mercato in queste regioni.
LOBO EV Technologies (Nasdaq: LOBO) ha firmado un acuerdo estratégico de fabricación y distribución con Capital Fortress Assets para cortadoras de césped robóticas en los mercados de EE. UU. y Australia. Según el acuerdo, Capital Fortress se encargará de la distribución y ensamblaje de los productos de LOBO proporcionados en forma de Complete Knock Down (CKD).
Los términos clave incluyen derechos de distribución exclusivos (excluyendo el comercio electrónico), un compromiso de ventas mínimo de 1 millón de dólares o 1,500 unidades en los primeros 12 meses, y un servicio postventa integral. La asociación tiene como objetivo optimizar la eficiencia de la cadena de suministro mediante la fabricación local de componentes y mejorar la penetración de mercado en estas regiones.
LOBO EV Technologies (Nasdaq: LOBO)는 Capital Fortress Assets와 미국 및 호주 시장에서의 로봇 잔디 깎는 기계에 대한 전략적 제조 및 유통 계약을 체결했습니다. 계약에 따라 Capital Fortress는 Complete Knock Down (CKD) 형태로 제공되는 LOBO 제품의 유통 및 조립을 담당합니다.
주요 조건에는 독점 유통권(전자상거래 제외), 첫 12개월 동안 최소 100만 달러 또는 1,500대 판매 약정, 종합적인 사후 서비스가 포함됩니다. 이 파트너십은 지역 부품 제조를 통한 공급망 효율성을 최적화하고 이들 지역에서의 시장 침투를 강화하는 것을 목표로 합니다.
LOBO EV Technologies (Nasdaq: LOBO) a signé un accord stratégique de fabrication et de distribution avec Capital Fortress Assets pour des tondeuses robotisées sur les marchés américain et australien. Dans le cadre de cet accord, Capital Fortress s'occupera de la distribution et de l'assemblage des produits de LOBO fournis sous forme de Complete Knock Down (CKD).
Les conditions clés comprennent des droits de distribution exclusifs (hors e-commerce), un engagement de vente minimum de 1 million de dollars ou 1 500 unités au cours des 12 premiers mois, et un service après-vente complet. Ce partenariat vise à optimiser l'efficacité de la chaîne d'approvisionnement grâce à la fabrication locale de composants et à améliorer la pénétration du marché dans ces régions.
LOBO EV Technologies (Nasdaq: LOBO) hat eine strategische Vereinbarung zur Herstellung und Distribution mit Capital Fortress Assets für robotergestützte Rasenmäher auf dem US-amerikanischen und australischen Markt unterzeichnet. Laut der Vereinbarung wird Capital Fortress die Distribution und Montage der in Complete Knock Down (CKD)-Form gelieferten Produkte von LOBO übernehmen.
Wichtige Bedingungen umfassen exklusive Vertriebsrechte (außer im E-Commerce), ein Mindestverkaufsengagement von 1 Million US-Dollar oder 1.500 Einheiten in den ersten 12 Monaten sowie einen umfassenden After-Sales-Service. Die Partnerschaft zielt darauf ab, die Effizienz der Lieferkette durch die lokale Komponentenproduktion zu optimieren und die Marktdurchdringung in diesen Regionen zu verbessern.
- Secured exclusive distribution rights in U.S. and Australian markets
- Guaranteed minimum sales of $1M or 1,500 units in first 12 months
- Local assembly reduces shipping costs and improves operational efficiency
- Partnership includes after-sales service support
- E-commerce channels excluded from distribution agreement
- Success dependent on partner's performance in meeting sales targets
Insights
This strategic manufacturing and distribution agreement represents a calculated market entry strategy for LOBO. The
The U.S. robotic lawn mower market has been growing steadily, with increasing adoption in both residential and commercial segments. Australia presents a complementary opportunity due to similar consumer preferences and landscaping needs. However, LOBO faces established competitors like Husqvarna and WORX in these markets, making the success dependent on competitive pricing and effective differentiation.
For a company with a market cap of
The exclusive distribution agreement provides predictable revenue potential while maintaining control over e-commerce channels. The arrangement's emphasis on local component manufacturing could lead to improved gross margins over time. However, investors should monitor the execution risks and working capital requirements associated with the CKD supply model.
Partnership expected to contribute to strong sales growth and operational efficiency
WUXI, China, Dec. 16, 2024 (GLOBE NEWSWIRE) -- LOBO EV Technologies Ltd. (Nasdaq: LOBO) (“LOBO” or the “Company”), an innovative e-bicycle, e-moped, e-tricycle, and electric off-highway four-wheeled shuttle designer, developer, manufacturer and seller, signed a strategic manufacturing and distribution agreement with Capital Fortress Assets Ltd. (“Capital Fortress”), a lawn and garden equipment distributor. This agreement marks a pivotal expansion of LOBO’s business in the U.S. and Australian markets, two regions with significant growth potential for robotic lawn mowers.
Under the terms of the agreement, Capital Fortress will distribute and assemble LOBO’s robotic lawn mowers and other innovative products in the U.S. and Australia. LOBO will supply products and components to Capital Fortress in Complete Knock Down (CKD) form, enabling efficient local assembly and distribution. This strategic collaboration enhances LOBO’s ability to penetrate key markets effectively while prioritizing operational efficiency.
"This partnership represents an exciting opportunity to grow LOBO’s footprint in two of the most dynamic markets for robotic and electric-powered equipment," said Huajian Xu, CEO of LOBO. "We are confident that by leveraging local manufacturing and distribution expertise, we can enhance our market responsiveness and deliver sustainable, high-quality solutions to our customers."
Key Highlights of the Agreement:
- Exclusive Distribution Rights: Capital Fortress is granted exclusive rights to distribute and sell LOBO’s robotic lawn mowers in the U.S. and Australia, excluding direct e-commerce channels.
- Sales Commitments: A minimum sales volume of
$1 million or 1,500 units within the first 12 months, supporting the scalability of the venture. - Manufacturing Innovation: Provisions for supply chain optimization, including supporting efforts to develop locally manufactured components to enhance cost efficiency and meet regulatory requirements.
- Support: Capital Fortress will provide comprehensive after-sales service.
LOBO’s robotic-driven lawn mower, the centerpiece of this partnership, combines cutting-edge autonomous navigation and robust performance, making it ideal for residential and commercial applications. The products will be marketed under LOBO’s trademark and reflect the company’s commitment to sustainable and intelligent design.
The partnership is expected to drive revenue growth by expanding LOBO’s access to two high-potential markets. The expertise of Capital Fortress and its related companies in distribution and manufacturing is anticipated to accelerate product availability and customer adoption.
About LOBO EV Technologies Ltd.
LOBO is an innovative designer, developer, manufacturer and seller of e-bicycles, e-mopeds, e-tricycles, and electric off-highway four-wheeled shuttles such as golf carts and mobility scooters for the elderly and disabled persons. LOBO also provides automobile information and entertainment software development and design services to customers. Leveraging its cutting-edge technologies in connectivity, multimedia interactive systems and artificial intelligence, LOBO re-defines and develops its products in order to provide users with convenient, affordable and pleasant driving experiences. For more information, visit: https://www.loboebike.com and http://www.loboai.com/. Any information displayed on, or that can be accessed through, our website or any other website or any social media is not a part of this press release.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the expected closing date of the public offering and the Company’s strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements are subject to risk and uncertainties, including, but not limited to, those described in “Risk Factors,” “Operating and Financial Review and Prospects,” “Cautionary Note Regarding Forward-Looking Statements” in the Annual Report on Form 20-F filed with the SEC (File No. 333-270499) on April 30, 2024. LOBO undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.
Contact:
For more information, contact:
Zane Xu
IR Manager
ir@loboai.com
FAQ
What are the minimum sales requirements in LOBO's agreement with Capital Fortress?
Which markets are covered by LOBO's new distribution agreement?
What is excluded from Capital Fortress's distribution rights for LOBO products?
How will LOBO's products be manufactured under the Capital Fortress agreement?
What services will Capital Fortress provide for LOBO products?
