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Ideanomics expands Chinese EV taxi and bus markets and divests non-core asset

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Ideanomic, through its subsidiary, Mobile Energy Global or “MEG”, has been focusing on the expanding global EV market, specializing on companies with commercial vehicle operating fleets required to acquire EV’s.

Additional Information:

Company: Ideanomics
Website: http://www.ideanomics.com
Stock Symbol: NASDAQ: IDEX
Date Published: Jun 18, 2020
Transcript: Available

Video Transcript:

I’m Cassandra Bolinski for Investmentpitch Media

Ideanomics, a global company focused on monetizing the adoption of commercial electric vehicles and associated energy consumption, has secured impressive EV orders over the last week.

Ideanomic, through its subsidiary, Mobile Energy Global or “MEG”, has been focusing on the expanding global EV market, specializing on companies with commercial vehicle operating fleets required to acquire EV’s.

In May, the company launched the largest auto trading market in Qingdao, Shandong Province, China.

The one million square foot MEG Center, with a capacity of 18,000 vehicles, and hosting a full suite of car dealer services for new energy and used cars, was an immediate success, reporting sales in May of more than 2,100 vehicles for approximately US$33 million.

Early sales numbers for June have already surpassed May, which is impressive when you consider the high season for car buying in China is between October and January.

On June 10th, the company reported sales of approximately 10,000 EV taxis, to several taxi companies, which will both replace current non EV taxis as well as increase the size of their fleets.

Due to the potential size of the market, MEG is sourcing vehicles from a number od suppliers, including BYD, Nissan, Kia, Geely, and Chery to ensure it can meet both cost and delivery requirements.

With delivery fulfillment underway, MEG is providing 10 units of the Tesla Model 3 as a proof of concept, which could see the U.S. manufacturer support additional MEG orders in China.

On June 16th, MEG secured an initial order of 300 units from a licensed operator of Didi Chuxing, the world’s leading mobile transportation/ride-share platform, similar to Uber.

Didi serves more than 550 million users across Asia, Latin America, and Australia.

The order is valued at approximately US$4.2 million with delivery expected to commence later this month.

On June 17th, MEG announced a 400 unit EV order for electric logistic vehicles, valued at approximately US$5.1 million, from the Jiudao Group.

Operating in more than 100 cities in China, the Jiudao Group is a new energy transportation services provider offering passenger and commercial EV rentals and EV charging solutions with an integrated payment platform.

MEG and the Beijing Silk Road Rainbow Group have jointly developed a new energy bus plan to help facilitate the sale of more than 2,000 EV buses in China.

China’s EV bus replacement market is estimated to be in excess of US$118 billion.

The Chinese government mandated that bus operators must convert or replace their bus equipment with clean energy vehicles by the end of 2022.

In a move to divest non-core assets and focus only on EV and new energy vehicle industries, Ideanomics has agreed, subject to board approval, to sell Grapevine Logic, Fintalk, and CommentsRadar, to Techconn Holding Group, recuiving 15% of the new entity.

Techconn’s influencer operations currently oversee more than 340,000 influencers from their operations in China.

Along with Grapevine’s 190,000 influencers, the new entity would become one of the world’s leading and truly global influencer platforms, boasting more than 540,000 key opinion leaders or KOLs.


Dr. Bruno Wu, Chairman of Ideanomics, stated: "China benefits from a striving ecosystem of influencers much more involved with brand promotions, and the influencers that are quickly sought after and can easily monetize their following. The strong appetite of followers for brand recommendations are advantageous for KOLs and for brands: both benefit from strong demand for quality branded content. With our combined technologies to drive sales, the planned IPO of Techconn could happen within the next 24 months."

The shares are trading at $2.05

For more information, please visit the company’s website www.ideanomics.com, contact Tony Sklar, VP of Communications, at 212-206-1216 or by email at ir@ideanomics.com.

I’m Cassandra Bolinski for Investmentpitch Media