Ideanomics' MEG Signs Strategic Partnership with China's Largest Commercial Truck Service to Extend MEG Services to Commercial Truck Customers
NEW YORK, Dec. 11, 2019 /PRNewswire/ -- Ideanomics (NASDAQ: IDEX) ("Ideanomics" or the "Company") has today announced a strategic partnership with Linghao Zhitong 3000, the leading SaaS platform for shipping and logistics management in China. Under the terms of the agreement, Ideanomics' Mobile Energy Global (MEG) division will be the exclusive agent for truck purchasing and leasing services to Linghao Zhitong 3000's growing customer base, which is currently more than 230,000 trucks from over 1,000 fleet operators. Current growth forecasts for Linghao Zhitong extend that number of trucks to 300,000 for 2020 and reaching 500,000 by 2023.
The deal is focused on commercial EV enablement. However, MEG will also provide procurement and leasing services to the long-distance market which EV does not currently support, until such time as charging network infrastructure and/or EV battery technology can support the longer distance truck operators. It will provide these extended services to ensure a complete offering to truck operators who service both short, middle, and long-distance logistics and will utilize both EV and combustion engine in the short-term.
"The commercial fleet market in China has a depreciated truck replacement in the range of between 20% - 30% per year, which means there's a tremendous amount of cost savings and added value for our MEG division to provide to Linghao Zhitong's 1000 plus fleet operators," said Alf Poor, CEO of Ideanomics. "MEG will offer these shipping and logistics fleet operators the best truck for their specific needs, at the best price, with the most competitive lease financing payment terms available in the industry. We are delighted to be working with Linghao Zhitong's team to extend the range of services available to their fast-growing customer base of commercial fleet operators".
As part of the agreement, MEG and Linghao Zhitong will explore other business opportunities, including a lease financing consortium, insurance product solutions, fractionalized ownership programs, as well as the potential for a capital markets partnership.
About Linghao Zhitong 3000
Linghao Zhitong 3000 is China's leading intelligent shipping and logistics management platform. Its SaaS-based platform connects shipping, logistics, warehouses in almost every area of China's and is currently operational in a third of China's cities. For Suppliers and Supply Chain Management companies it offers intelligent warehouse, freight yard, and transportation services, through live order bidding, to improve efficiency and cost for all participants and includes unique cargo security, driver security and other data-driven monitoring features to help optimize warehousing, shipping, logistics, and freight delivery.
About Ideanomics
Ideanomics is a global Financial Technology (Fintech) company for transformative industries. Ideanomics combines deal origination and enablement with the application of technologies such as artificial intelligence, blockchain, and others as part of the next- generation of smart financial services. Our projects in New Energy Vehicle markets, Fintech, and advisory services provide our customers and partners better efficiencies, technologies, and access to global markets. The key EV operating segments for Ideanomics' Mobile Energy Global (MEG) division are Heavy Duty commercial for closed area environments, such as Mining, Steel Mills, Airports, and Seaports, Light commercial last-mile logistics vehicles, Buses and Coaches, and Taxis.
The company is headquartered in New York, NY, and has offices in Beijing, China. It also has a planned global center for Technology and Innovation in West Hartford, CT, named Fintech Village.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements". All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties, and include statements regarding our intention to transition our business model to become a next-generation financial technology company, our business strategy and planned product offerings, our intention to phase out our oil trading and consumer electronics businesses, and potential future financial results. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of risks and uncertainties, such as risks related to: our ability to continue as a going concern; our ability to raise additional financing to meet our business requirements; the transformation of our business model; fluctuations in our operating results; strain to our personnel management, financial systems and other resources as we grow our business; our ability to attract and retain key employees and senior management; competitive pressure; our international operations; and other risks and uncertainties disclosed under the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, and similar disclosures in subsequent reports filed with the SEC, which are available on the SEC website at www.sec.gov.. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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Email: ir@ideanomics.com
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