CF Energy expands battery replacement business in Beihai, Canadian Business Journal

TORONTO, Nov. 24, 2022 (GLOBE NEWSWIRE) — CF Energy Corporation (TSX-V: CFY) (“CF Energy” or the “Company” and its subsidiaries, the “Group”) is a leading new energy service. People’s Republic of China (“PRC”) provider Beihai Brighton Road New Energy Ltd. operates an electric (“EV”) vehicle battery swap station in the local Beihai city announced the Group’s acquisition of a 70% stake in the profitable North Sea Brighton Road New Energy Limited. Acquired (“Beihai Company”) of Beihai City, Gangxi Province, China for a consideration of RMB 1.24 million, referring to Beihai Company’s valuation of RMB 1.77 million.

The company provided strategic advice and support to the Beihai Company in setting up its first two EV battery exchange stations in Beihai City, and will only acquire the Beihai Company once it has achieved all the pre-set targets of its development plan. completed. Since the first EV battery swap station went live on May 23, 2022, both stations will be operational by the end of October 2022, and Beihai Company will have a total revenue of RMB 1.11 million and a total of RMB 330,000. generated his original EBITDA. Beihai Company currently has 344 active taxis registered as EV battery swap users, and plans to add another 90 battery swap EV taxis by early next year, bringing the total to 434 taxis. Currently, there are a total of 550 taxis in Beihai City, and our customers account for 62.5% of the market. An estimated 90 new battery-swap EV taxis bring the total market to 640 units, with our market share estimated at 67.8%. All Beihai taxis are battery-swap vehicles, and only Beijing EV and Dongfeng EV are on the government’s list of taxi suppliers.

To strengthen Beihai Company’s financial position, the Group is currently in the final stages of raising a long-term loan of RMB 14 million for refinancing equipment and battery inventory, pending the internal approval procedures of lending financial institutions. .

Our EV battery swap business development strategy in the expansion of Beihai City has been successful. This reported case can be viewed as evidence that CF Energy has the ability to capitalize on first mover advantage due to its extensive market development and operational experience accumulated. A number of cities of similar size and character in China may present new opportunities for us in the early development stages of the EV battery swap market. The company will continue to expand its established EV battery swap market in Sanya, Haikou and Beihai, while keeping an eye on new opportunities in other cities.

About Beihai

Beihai is a county-level city in the Guangxi Zhuang Autonomous Region in southern China and an important node city of the Northern Gulf City Agglomeration and the Guangxi Northern Gulf Economic Zone. It has jurisdiction over three districts and one county, covering a total area of ​​3,337 square kilometers. According to data from the 7th Census, as of November 1, 2020, Beihai has a permanent population of 1,853,227.

About CF Energy Corp. (former: Changfeng Energy Inc.)

CF Energy Corp. is a publicly traded Canadian company trading on the Toronto Venture Exchange (“TSX-V”) under the stock symbol “CFY”. It is a Chinese integrated energy provider and natural gas utility/distribution company. CF Energy strives to combine leading clean energy technologies with the use of natural gas to provide sustainable energy to its Chinese customer base.

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Corporate investment
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Charles Wang
Assistant to CEO and Chairman of the Board
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Frederick Wong
Director
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Mike Liu
VP Capital Markets
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