TORONTO, Nov. 24, 2022 (GLOBE NEWSWIRE) — CF Energy Corp. (TSX-V: CFY) (“CF Energy” or the “Company”, together with its subsidiaries, the “Group”), a leading new energy service provider in the People’s Republic of China (“PRC”) ) to announce that the Group has acquired a 70% stake in Beihai Electric’s profitable domestic vehicle (“EV”) battery replacement station operator, Beihai Brighton Road New Energy Ltd. (“Beihai Company”) in Beihai City, Gangxi Province, People’s Republic of China, for the amount of RMB 1.24 million in connection with the valuation of the Beihai Company of RMB 1.77 million.
The company provided strategic advice and support to Beihai in the construction of the first two EV battery swap stations in Beihai City, and completed the acquisition only when Beihai achieved all the pre-set goals of the development plan. Since the commissioning of the first EV battery swap station on May 23, 2022, to the end of October 2022, with both stations in operation, Beihai has achieved total revenue of CNY 1.11 million and EBITDA of CNY 0.33 million. Beihai currently has 344 active taxis registered where users swap EV batteries, with another 90 battery-swapping taxis expected to be added by early next year to a total of 434 taxis. There are currently 550 taxis in Beihai City, and our customers account for 62.5% of the market. The total number of 90 new battery-swapped taxis will reach 640, and our market share is estimated at 67.8%. All taxis in Beihai are battery swap cars, and only Beijing EV and Dongfeng EV are among the government’s taxi suppliers list.
To strengthen Beihai’s financial position, the group is currently in the final stage of raising RMB 14.0 million in long-term financing to refinance equipment and battery inventory, pending the lending financing institution’s internal approval procedures.
The company’s electric vehicle battery exchange business development strategy in the expansion of Beihai City has achieved successful results. This reported case can be seen as evidence to show that CF Energy has the ability to capitalize on an early mover advantage through accumulated experience in market development and operation. Several cities of similar size and characters in China may present new new opportunities in the early development stage of the company’s electric vehicle battery swap markets. While the company will continue to grow its well-established electric vehicle battery swap markets in Sanya, Haikou and Beihai City, it will keep its eyes open for good new opportunities in other cities.
around Beihai city
Beihai is a prefecture-level city in Guangxi Zhuang Autonomous Region in southern China, an important city of Beibu Bay urban agglomeration and Guangxi Beibu Gulf Economic Zone. It has jurisdiction over 3 regions and 1 province, with a total area of 3,337 square kilometers. According to the data of the 7th census, as of November 1, 2020, the permanent population of Beihai City is 1,853,227.
About CF Energy Corp. (Formerly known as: Changfeng Energy Inc.)
CF Energy Corp. It is a Canadian public company trading on the Toronto Venture Exchange (“TSX-V”) under the stock symbol “CFY”. It is an integrated energy provider and natural gas distribution/utility company in the People’s Republic of China. CF Energy strives to combine leading clean energy technology with the use of natural gas to provide sustainable energy to its customer base in the People’s Republic of China.
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Director of the Board of Directors
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