Jiuzi Holdings Inc (NASDAQ:JZXN) experienced an 11.8% fall in premarket trading after confirming that Xinhui Solar Technology Group Co., Ltd. will invest $30 million in the company. The infusion is earmarked for a strategic partnership to deploy electric vehicle (EV) charging infrastructure and new energy vehicle service networks across Southeast Asia.
Under the terms described by the companies, Xinhui Solar will contribute equity and take part in co-development initiatives alongside Jiuzi. The collaboration is structured around a phased investment approach intended to establish charging networks that span major cities and important transportation corridors in the region.
Both parties said the partnership seeks to combine resources to speed Jiuzi’s overseas expansion. Jiuzi highlighted the potential to capture synergies across what it described as "capital + technology + channels," indicating the deal is intended to pair financial backing with operational know-how and local distribution capabilities.
Xinhui Solar noted its optimism about electrified transport growth in Southeast Asia and pointed to Jiuzi’s stated strengths in charging technology, network operations and service systems as key reasons for the transaction. The companies plan to progressively build charging and service networks to raise regional service capacity and operational efficiency in response to increasing EV penetration and charging demand.
The announcement ties direct investment to on-the-ground development work, with Xinhui slated to leverage its local resources, channels and operating experience to support the rollout. The phased nature of the investment indicates a staged execution plan for network deployment across urban and corridor locations.
Market reaction and strategic framing
The immediate market response in premarket trading was a sharp pullback in Jiuzi’s share price. The companies, however, framed the agreement as creating a pathway to scale operations in Southeast Asia by blending financial backing with co-development efforts and local market expertise.
This transaction positions both firms to respond to regional EV charging demand by deploying assets and operational structures intended to support broader adoption of new energy vehicles.
Additional details provided by the companies
- The investment amount is $30 million from Xinhui Solar Technology Group Co., Ltd.
- The focus is on EV charging infrastructure and new energy vehicle service networks across Southeast Asia.
- Deployment will follow a phased investment approach covering major cities and key transport corridors.
- Xinhui will provide equity and participate in co-development initiatives to leverage local resources and operating experience.
- Jiuzi expects to realize synergies across "capital + technology + channels" and to strengthen its brand influence in the region.