TORONTO, May 20, 2020 (GLOBE NEWSWIRE) -- CF Energy Corp. (TSX-V: CFY) (“CF Energy” or the “Company”, together with its subsidiaries, the “Group”), a leading new energy service provider in the People’s Republic of China (the “PRC” or “China”), is pleased to announce that EDF CF (Sanya) Energy Co., Ltd. (“EDF CF”), a joint venture company which is 70% and 30% held by CF Energy Corp. and EDF (China) Holdings Ltd. (“EDF China”) respectively, has signed an exclusive co-operating agreement (the “Exclusive Co-operating Agreement”) with BAIC Qingxiang Technology Co., Ltd. (“BAIC QX”) and Blue Valley Smart (Beijing) Energy Technology Co., Ltd. (“Blue Valley”) to provide electric vehicle battery (the “EV”) swap services in the Hainan Province.
BAIC QX, a subsidiary of BAIC Motor Corporation., Ltd. (“BAIC Motor”) (BAIC Motor is currently the largest EV producer in China), provides EV leasing business in the PRC. It has released 200 swap-battery EVs for the network taxi hiring business (the “Network Taxis”) in Sanya City and is committed to place another 200 more of such EVs as Network Taxis in the coming months. Blue Valley is China’s leading battery swap station technology provider and will provide the equipment, assembly and maintenance service to EDF CF for the battery swap stations. Under the Exclusive Co-operating Agreement, EDF CF will invest, build and operate four (4) EV battery swap stations in Sanya City to serve these vehicles with the first two battery swap stations expected to be in operation by the end of June 2020 and the remaining two stations before the end of 2020.
The Exclusive Co-operating Agreement provides an exclusive right for EDF CF to operate the EV battery swap stations for 8 years in Sanya City and first priority to be the exclusive operator in Haikou and other cities in Hainan Province within one year.
“We are very excited for the opportunity to work with BAIC QX, which is backed by the largest EV producer and seller in the PRC. We are also proud of having China’s leading EV battery swap technology provider, Blue Valley, as our business partner. We can be confident that we have the best available equipment and solutions to serve our customers. Our automated stations can complete one set of EV battery swap job within three minutes!” Ann Lin, the Chair and CEO of the Company added. “Our entering into of the EV business represents a major, important and timely breakthrough to our Group as it adds a new dimension to our existing natural gas based business model, which is in line with the clean energy vehicle drive of the government as part of its initiative to develop Hainan island into a clean energy island which aims to increase EVs number to 1,000,000 by 2030 from the current 30,000 level, we’re sure that BAIC Motor will take a major market share of that. We believe our swap battery service will meet high growth demand in Sanya City and Hainan Province. Our solution will largely reduce EV drivers’ range anxiety and improve vehicles’ usage efficiency. We would like to work with our partners closely, take advantage in this fast-growing market, and prove our well planned, sustainable and profitable business model.”
About EDF CF (Sanya) Energy Co., Ltd.
EDF CF (Sanya) Energy Co., Ltd. is a 70% / 30% joint venture between the EDF Group and CF Energy Corp. to pursue renewable and clean energy projects in the PRC. The landmark project for the joint company thus far is the Haitang Bay Smart Energy Project, which combines the use of multiple clean energy sources, including solar, hydro, electricity, and natural gas (CCHP/Co-Gen), to supply cooling, heating, as well as hot water to the hotels, shopping centers, and households in the Haitang Bay area of Sanya City, the Hainan Province, the PRC. The project is considered as a leading integrated smart energy program in the PRC’s energy market.
About BAIC Qingxiang Technology Co., Ltd.
Founded in September 2010, BAIC Motor is the platform of Beijing Automotive Group Co., Ltd (the “BAIC Group”) for complete passenger car resource integration and business development, and is one of the enterprises to which the Beijing municipal government offers focused support. BAIC Motor completed its IPO of H Shares on 19 December 2014 and went public in the Main Board of the Stock Exchange of Hong Kong Limited (SEHK) (H Shares name: BAIC Motor; H Shares Code: 1958).
BAIC Motor has a diverse range of business sectors, from R&D, manufacturing, sales and after-sales service for passenger cars, production of passenger car core components, automotive finance, to other related businesses. BAIC Motor is also the leading company for the pure electric passenger car business in China. BAIC Qingxiang is a subsidiary of the BAIC Group that focuses on EV car rentals and related technology development in the PRC.
About Blue Valley Smart (Beijing) Energy Technology Co., Ltd.
Blue Valley Smart (Beijing) Energy Technology Co., Ltd is a subsidiary of the BAIC group that supports the equipment and maintenance of the EV battery swap stations used to service BAIC Qingxiang’s EV fleets.
About CF Energy Corp. (Previously known as: Changfeng Energy Inc.)
CF Energy Corp. is a Canadian public company currently traded on the Toronto Venture Exchange (“TSX-V”) under the stock symbol “CFY”. It is an integrated energy provider and natural gas distribution company (or natural gas utility) in the PRC. CF Energy strives to combine leading clean energy technology with natural gas usage to provide sustainable energy to its customer base in the PRC. In 2009, CF Energy was recognized as being one of China’s the Top Ten Most Influential Brands in the Natural Gas Industry and in 2019, ranked amongst the 2019 TSX Venture 50 top performers on the TSXV for the 2018 year.
CONTACT INFORMATION
Corporate Investment Relations
investor.relations@changfengenergy.cn
Charles Wang
Executive Assistant to CEO & Chair of the Board
Zhaoyu.wang@changfengenergy.cn
Frederick Wong
Director of the Board
fred.wong@changfengenergy.cn
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