EV Battery Swap Station

The EV battery swap station business is a segment of the Group to build and operate battery swap service to electric vehicles. EDF CF has invested, built and operated two (2) EV battery swap stations in Sanya City to serve BAIC Qingxiang Technology Co., Ltd.’s (“BAIC QX”) 200 swap-battery EVs for its network taxi hiring business (the “Network Taxis”) currently operating in Sanya City and its additional 200 EV Network Taxis planned for Hainan Province in the near term with Blue Valley Smart (Beijing) Energy Technology Co., Ltd. (“Blue Valley”). The two (2) battery swap stations have started commercial operations in August 2020 and January 2021 respectively. In September 2020, the Company and EDF (China) Holding Ltd. (“EDF (China)”) jointly established Hainan Huapu Smart Mobility Company Limited (“Huapu SM”), which signed an 8-year exclusive co-operating agreement with BAIC QX and Blue Valley to provide EV battery swap services in the city of Haikou City, provincial capital of Hainan Province. The first battery swap station in Haikou City commenced operation in August 2021, and the second station commenced operation in January 2022. Concurrently, a memorandum of understanding was also signed among the Company, EDF (China) and Blue Valley to jointly develop the battery swap project in Zhuhai City, Guangdong Province. The first battery swap station of Zhuhai City completed construction near the end of 2021, and it had an opening ceremony on January 11, 2022. The station was under trial run in February 2022 and officially commenced operation in March 2022.

We are continuing to bond and negotiate with local taxi and ride-sharing companies, municipal public transportation ministries in various areas to promote and advocate our EV battery swap services. We are also working on our plans to bring in more EV taxis into our battery swap stations in Haikou City and Sanya City, including working with the regional auto car dealers to prepare for a tender of the upcoming EV taxi renewal under the initiative of the Sanya Public Transport Authority. Meanwhile, as most taxi and ride-sharing companies in Zhuhai City are delaying their schedules to renew their taxis, we are revising our operational plan in Zhuhai City accordingly, and will cooperate with those companies to develop an interim solution during this difficult period.