NEW YORK, May 31, 2019 /PRNewswire/ -- Ideanomics (NASDAQ: IDEX) ("Ideanomics" or the "Company"), a global Fintech and AI catalyst for transformative industries, today announced the signing of a strategic joint venture with China'siUnicorn (also known as Shenma Zhuanche). iUnicorn is a top-five Chinese ride-hailing service in both ridership and financial performance, which offers only luxury branded electric vehicles such as Tesla, BMW, Buick, Mercedes, and Cadillac, in addition to Chinese electric vehicle manufactures. The JV will become a green finance and integrated marketing service enterprise for new energy vehicles as part of Ideanomics' New Energy Vehicle division. The JV will become the exclusive sales, marketing, operations, and financing partner for iUnicorns activities, as well as for other EV activities, including tour bus and other specialty vehicles.
Ideanomics will have 50.1% ownership control. The board will contain 5 members comprised of 3 from Ideanomics, including the chairman, and 2 from iUnicorn. Additionally, iUnicorn will appoint the CEO and the parties will coordinate on the appointment of the JV's CFO. The JV will be domiciled outside of China to allow the flexibility to spin-off the business in the future.
Ideanomics will contribute advisory and sales responsibilities which will include arranging ABS-based auto financing with its bank and financing partners, from assets provided by vehicle manufacturers to the value of 5 Billion RMB, as well as order origination in Vietnam, and other target territories up to and including the U.S. Ideanomics will also contribute its tour bus and commercial vehicle orders.
iUnicorn will contribute its signed sales orders in Chengdu of 19,000 vehicles, plus a further 89,000 vehicle orders mainly in Sichuan province, which are in addition to the Chengdu order. iUnicorn will also provide sales and operational support for the joint venture. The fulfillment of these orders will commence immediately, with the Chengdu order anticipated to begin to take delivery during the 3rd quarter of 2019. The JV will generate revenues from fees from ABS, ranging from 0.7% to 1.5% and also commissions on vehicle sales orders, which will vary according to manufacturer and vehicle model.
"The adoption of new energy vehicles is in full force across China and ASEAN countries and Ideanomics is making its mark more than any other US Company in this market. Our deal origination along with our efforts to facilitate the entire value chain from supply through to ABS financing, are just some of the tools that will benefit our partners and shareholders," said Alf Poor, CEO of Ideanomics. "We are excited to work with the dynamic team at iUnicorn, which have built a profitable business quickly and efficiently, and a successful joint venture with strong income streams."
China has approximately 1.5 Million taxis operating in its towns and cities, making it one of the largest focus areas for the reduction of carbon emissions from vehicles. Vietnam has seen 15% CAGR in the number of taxis between 2012 and 2017 and shows no signs of slowing with a high-growth population currently at 95 Million people and reflective of the ASEAN region as a whole.
"Ideanomics has the right experience in the electrification and cleantech markets for iUnicorn to succeed and outpace our competitors. Our ability to collaborate in multiple areas will benefit our riders, our drivers, and our shareholders," said Yang Guang, Chairman of iUnicorn. "We are excited about the revenue opportunities available to this joint venture, and Ideanomics provides a strong entry point into the Ex-China and U.S. markets, on the ground and in the capital markets."
About iUnicorn (also known as Shenma Zhuanche).
iUnicorn offers luxurious ride-hailing services with luxury branded electric vehicles such as Tesla, BMW, Buick, Mercedes, and Cadillac. iUnicorn aims to solve the safety and comfort problems of private travel, as well as provide high-end, standardized, professional and private business vehicles for enterprises. iUnicorn has been operating profitably in Guiyang, Chengdu, Shanghai, Shenzhen and Guangzhou, and first-class service has begun to grow nationwide.
Ideanomics is a global Fintech and AI catalyst for transformative industries. Ideanomics combines deal origination and enablement with the application of blockchain and artificial intelligence technologies as part of the next-generation of financial services.
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.
Investor Relations and Media Contact
Tony Sklar, VP of Communications at Ideanomics
55 Broadway, 19th Floor New York, New York 10006
View original content to download multimedia:http://www.prnewswire.com/news-releases/ideanomics-enters-into-joint-venture-with-iunicorn-to-expand-electric-vehicle-activities-into-lucrative-taxi-market-300859747.html