Shares of the Jiuzi Holdings, Inc. (JZXN) stock were soaring in the premarket today on December 7, 2021. JZXN stock price saw a push of 25.83% to reach $1.90 a share at the time of this writing. The stock was gloomy in the previous trade and went down by 1.31% at closing. Let’s deep dive to understand the reason behind this rally.

What’s Happening?

Jiuzi Holdings, Inc. (JZXN) stock has captivated the attention of investors after it announced that it has signed the cooperation agreement with Zhejiang Youxing New Energy Co., Ltd. Pursuant to the agreement, Both JZXN stock and Youxing will involve in the sales as well as procurement of Ruichi Electronic Vehicles across China. The main target of both parties is more than 1000 Ruichi brand EVs sales in 2022. In order to partially cover the advance payment to Ruichi, the company will give the revolving credit line of RMB 10 million to Youxing. Moreover, Youxing will be able to repay the loan payment after the sales of the EV. JZXN stock will have the right to sell EVs in the auction at the marketplace if Youxing fails to repay.

This partnership will not only alleviate the financial burden of Youxing but also increase the sales of Ruichi EV. Now the JZXN stock has the right to sell the EVs in the auction, this has reduced the financial risk of the JZXN stock. The management is happy to sign this cooperation partnership agreement and anticipates the sales revenue of RMB 35 – 45 million in the upcoming year.

Previous Update of the JZXN stock

According to the previous update of the JZXN stock, the company recorded a growth of 40% in its several franchise stores in the tenure between April 1, 2021, and October 31, 2021. At the same time, the management of the JZXN stock had been in discussions with 12 new brands for potential collaborations. The performance in the fourth quarter of 2020 was up to the mark of Jiuzi stock. The company has targeted higher revenue and profit margin for Q1,2022 as it anticipates the growth of the business with the JZXN’s APP beta version launch.

Wrap Up

Investors are responding positively to the announcement of a cooperation agreement of Jiuzi stock with Zhejiang Youxing. The sentiment is positive so far and it would be interesting to see how long it will persist as the stock market is highly unpredictable. The performance in terms of per-share price is not so much satisfactory as this stock has lost almost 92% year to date.