BAIYU Holdings' Subsidiary to Partner on 365 Charging and Battery Swap Stations Projects in Egypt

Rhea-AI Summary

BAIYU Holdings (Nasdaq: BYU) has announced a significant partnership through its subsidiary, Jintongyuan, with Adler International to construct and operate 365 charging and battery swap stations in Cairo, Egypt. This $547.5 million project, funded by the Egyptian government, marks BAIYU's expansion into the Middle East and Africa energy storage market.

Key points:

• Initial investment of $1.5 million per station
• BAIYU to provide energy storage systems, charging piles, and swapping equipment
• Joint venture to be established for operation and management
• Project aligns with BAIYU's global expansion strategy

Jintongyuan specializes in energy storage batteries and lithium battery products, focusing on large electric power vehicles. CEO Ouyang Renmei expressed enthusiasm about the opportunities in the MEA market and the company's competitive strength in the industry.

Positive

• Secured a major $547.5 million project for 365 charging and battery swap stations in Cairo, Egypt
• Expansion into the Middle East and Africa energy storage market
• Project fully funded by the Egyptian government
• Establishment of a joint venture for operation and management
• Demonstrates market recognition of BAIYU's competitive strength and technical expertise

Negative

• None.

Insights

International Business Analyst

This partnership marks a significant milestone for BAIYU Holdings in its global expansion strategy, particularly in the Middle East and Africa (MEA) region. The project's scale, involving 365 charging and battery swap stations in Cairo, with a total investment of $547.5 million, is substantial. However, it's important to note that the Egyptian government is fully funding this initiative.

While this presents a tremendous opportunity for BAIYU to showcase its expertise and gain a foothold in a new market, investors should consider the following:

• The project's success heavily depends on the Egyptian government's commitment and ability to follow through with funding.
• Political and economic stability in Egypt could impact the project's long-term viability.
• The company's ability to adapt its technology and operations to the local market will be critical.

Overall, this venture could potentially open doors to further opportunities in the MEA region, but it also carries risks associated with entering a new, potentially volatile market.

Energy Storage Technology Expert

BAIYU's subsidiary, Jintongyuan, is positioning itself strategically in the energy storage and EV infrastructure market. The company's focus on safety, reliability and system integration of energy storage and lithium batteries aligns well with the growing demand for sustainable transportation solutions.

Key points to consider:

• The shift towards a new system integration business model supported by intelligent services could provide a competitive edge.
• Jintongyuan's experience with large electric vehicles (trams, golf carts, forklifts) may need to be adapted for passenger EVs in Cairo.
• The success of this project could serve as a proof of concept for similar initiatives in other developing markets.

While the technology seems promising, investors should monitor how well Jintongyuan's expertise translates to this new application and market. The project's success could significantly boost BAIYU's credibility in the global energy storage sector.

Financial Analyst

From a financial perspective, this project presents an interesting opportunity for BAIYU Holdings, but with some caveats:

• The total project value of $547.5 million is substantial, potentially providing a significant revenue stream.
• However, the company's exact financial benefit is unclear, as the revenue share and profit margins are not disclosed.
• The joint venture structure with Adler International may dilute BAIYU's control and profits.
• Full government funding mitigates financial risk but may also limit upside potential.

Investors should seek clarity on:

• The revenue recognition timeline and how it will impact BAIYU's financials.
• Potential for follow-on contracts or expansion within Egypt and the broader MEA region.
• Any capital expenditure required from BAIYU for this project.

While potentially lucrative, the financial impact remains uncertain without more detailed terms of the agreement.

BRADENTON, Fla., Sept. 4, 2024 /PRNewswire/ -- BAIYU Holdings, Inc. ("BAIYU" or the "Company") (Nasdaq: BYU), a leading B2B bulk commodity e-commerce platform and supply chain service provider, today announced that the Company, through its subsidiary Shenzhen Jintongyuan Energy Storage Technology Co., Ltd. ("Jintongyuan"), has signed a Letter of Intent (the "LOI") with Adler International Ltd. ("Adler"), a Cairo-based company, to cooperate in the construction and operation of charging and swapping stations in Cairo, Egypt. The LOI marks a significant breakthrough in the Company's global expansion into the energy storage in the Middle East and Africa ("MEA") region.

Pursuant to the LOI, the Company agrees to provide energy storage systems, charging piles and swapping equipment, and to oversee the planning and construction of the charging and switching stations. Both parties have agreed to jointly operate and manage the stations through a newly established Egyptian joint venture. The project, fully funded by the Egyptian government, involves the planning, renovation, and reconstruction of 365 charging and swapping stations in Cairo, with an initial investment of approximately $1.5 million per station, totaling $547.5 million, subject to the scale of subsequent construction.

Jintongyuan specializes in the research and development (R&D), design, operation and maintenance, sales, and follow-up services of energy storage batteries, and lithium battery products, with a commitment to becoming a leading global energy storage power and lithium battery product operation service provider. Leveraging its advantages and expertise in the safety, reliability, and system integration of energy storage and lithium batteries, Jintongyuan now focuses on a new system integration business model supported by intelligent services, to enhance convenience and comfort for user experience. Currently, its energy storage battery products are mainly used in various large electric power vehicles such as electric trams, golf carts, forklifts, etc.

Ms. Ouyang Renmei, Chief Executive Officer of BAIYU Holdings, Inc., commented, "The MEA market has presented significant opportunities and potential in recent years. We are thrilled to have secured this major cooperation project, which represents a meaningful step forward in our expansion into the MEA. Entering this dynamic and promising market and underscores the market's recognition of our competitive strength and technical expertise. This milestone also confirms that our global expansion strategy is on the right track. Looking ahead, we anticipate sharing more exciting developments and achievements with our shareholders and stakeholders."

About BAIYU Holdings, Inc.

BAIYU Holdings, Inc. (NASDAQ: BYU) is a leading B2B bulk commodity e-commerce platform and supply chain service provider. Currently, the Company is focused on expanding its new business in photovoltaic, energy storage power, and fast-charging power stations, along with services for the new energy industry. The Company's business involves investing in fast-charging power stations, commercial power stations, and offering integrated new energy solutions and operations that encompass photovoltaic, energy storage, and fast-charging power stations. It offers comprehensive solutions and operations for global new energy storage systems and specialized sectors. With a central focus on new energy, integrated power systems, and an orientation towards integrated power systems, the Company is dedicated to fields like clean energy, smart power, intelligent photovoltaic, and the operation and maintenance of fast-charging station outlets. For more information, please visit www.baiyuglobal.com.

Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "approximates," "assesses," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or 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, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.

For more information, please contact:

BAIYU Holdings, Inc.
Investor Relations Department
Email: ir@baiyuglobal.com

Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1-646-932-7242
Email: investors@ascent-ir.com 

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SOURCE BAIYU Holdings, Inc.

FAQ

What is the value of BAIYU Holdings' new project in Egypt?

The project for 365 charging and battery swap stations in Cairo, Egypt, has a total value of $547.5 million, with an initial investment of approximately $1.5 million per station.

Who is funding the BAIYU Holdings (BYU) charging station project in Egypt?

The project is fully funded by the Egyptian government.

What is BAIYU Holdings' (BYU) role in the Egypt charging station project?

BAIYU Holdings, through its subsidiary Jintongyuan, will provide energy storage systems, charging piles, and swapping equipment, and oversee the planning and construction of the charging and switching stations.

How many charging and battery swap stations will BAIYU Holdings (BYU) build in Egypt?

BAIYU Holdings plans to construct and operate 365 charging and battery swap stations in Cairo, Egypt.