On December 23, Gelonghui reported that DRAGON RISE GP (06829.HK) announced that the Board of Directors is pleased to announce that (i) on November 1, 2024, DRAGON RISE Car Service Limited (a non-wholly-owned subsidiary of the company) ("DRAGON RISE Car Service") will enter into a non-exclusive electric taxi dealership and service agreement with an auto dealer; and (ii) on December 18, 2024, DRAGON RISE New Energy Holdings Limited (a non-wholly-owned subsidiary of the company) ("DRAGON RISE New Energy Holdings") will sign a non-binding memorandum of cooperation with a mobile energy solutions provider regarding the promotion of the Battery replacement ecosystem.
Under the dealership agreement, DRAGON RISE Car Service has agreed to cooperate with the auto dealer to non-exclusively distribute pure electric compact executive cars (including charging models and Battery replacement models), along with their components to Hong Kong's taxi industry. The auto dealer is a limited liability state-owned enterprise established in the People's Republic of China ("China"). The auto dealer is mainly engaged in the import and export of goods and technology, the distribution of electromechanical products and Autos, as well as providing warehousing and Transportation services.
According to the memorandum of cooperation, DRAGON RISE New Energy Holdings intends to collaborate with the mobile energy solutions provider to (i) promote cooperation in Battery replacement in the New Energy sector; (ii) establish and improve the Battery replacement service network; (iii) explore future trends in the Battery replacement market; and (iv) contribute to Battery subscription services.
In view of the enormous business opportunity of electric taxis and the serious lack of efficient public charging facilities and Infrastructure in Hong Kong, the Board of Directors believes that entering into a dealership agreement with the auto dealer and signing the memorandum of cooperation with the mobile energy solutions provider aligns with the group's strategy, actively seeking new opportunities and exploring options to expand its regional coverage beyond the Hong Kong market in order to enhance the future development of the group and strengthen the group's revenue base.