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Ideanomics' Announces Pilot Program to Monetize EV Energy SalesNEW YORK, April 7, 2020 /PRNewswire/ -- Ideanomics, (NASDAQ: IDEX) ("Ideanomics" or the "Company"), is pleased to announce that MEG 's energy sales unit has deployed a pilot platform in Nanjing, China which will focus on streamlining the operational aspects of EV energy sales and consumption and will serve as a blueprint to a broader roll-out in both Nanjing, and across other major cities in China.
To date, most of MEG's deals have been focused on commercial EV sales. Its long-term China strategy is to generate revenues from energy sales from electric vehicles (EVs). The pilot platform will be in Nanjing, Jiangsu Province, and is designed to streamline the interoperability between payment systems, charging stations, and energy supply chains. Combined, the energy sales pilot platform in Nanjing will enable MEG to generate revenues from pre-paid energy sales to commercial EV fleet operators as well as revenues from point of sale energy consumption at charging an fast-charging stations. The city of Nanjing's proximity to MEGs Qingdao facilities will enable MEG to gather feedback and deploy changes to the pilot program quickly and efficiently. Nanjing, with a population of approximately 8.5 million, is a high-profile, modern city, suitable for such a pilot, and is an industrial technology research and development hub that has attracted foreign investment from firms such as Siemens, Ericsson, Volkswagen, Ford, IBM, Lucent, Samsung, and SAP, who have research centers in Nanjing. The MEG energy sales pilot will focus on the convergence of payment systems, charging stations, and energy supply chains. The pilot will demonstrate a payment solution which will integrate gas, LNG, and electricity sales into a single secure platform payment interface with China Union Pay, and is designed to meet today's and tomorrow's energy needs. This new solution will deliver advanced payment features such as facial recognition and other contactless payment technologies. The platform is expected to launch by July 1. Additionally, the pilot will demonstrate supercharging stations, provided by CATL into PetroChina gas stations in Nanjing, as previously announced.. MEG and PetroChina have explored various charging technologies and, along with CATL, expect to begin converting gas pumps to EV superchargers as soon as Q4 of this year. Lastly, the pilot will focus on the energy supply chains that need to exist throughout the EV ecosystem. Through Sun Seven Stars Investment Group Limited1 (SSSIG) ongoing partnership with leading telecom companies and its participation in China's New Infrastructure Investments, MEG has entered into an agreement with SSSIG to exclusively manage the energy supply chain (EPC) for projects in Jiangsu. This is an update from Ideanomics'press release on March 27 announcing that MEG formed a strategic cooperation with China Tower, GCL Group, State Grid, Dongfang Energy Sales Cloud, and TMR Energy for MEG's IoT/IoV 5G Energy Services. This compliments our press release in early March, China announced that it was accelerating its New Infrastructure" investment. At that time, seven provinces and cities launched more than RMB 24 trillion (USD3.4 trillion) in key new infrastructure construction projects. The seven major areas of New Infrastructure Construction are: 5G infrastructure, ultra-high voltage (UHV), intercity high-speed railways and intercity rail transit, new energy vehicle charging station infrastructure, big data centers to service 5G IoT/IoV data collection, artificial intelligence and industrial internet. EPC's services include design, procurement, and construction. It is mainly aimed at the design of energy systems, the procurement of photovoltaic, energy storage and charging equipment, and associated financial services. These three initiatives pave the way for MEG to generate revenues from energy sales and management, and to book energy sales alongside EV sales and financing services. "The team has been excited to get the Nanjing project underway, since our announcement in September 2019. The rapid technological advancement in EV charging meant we were able to evaluate many new-to-market EV charging solutions which enable the types of fast-charging and streamlined payment solutions required to ensure adoption and a successful pilot program," said Alf Poor, CEO of Ideanomics. "We look forward to a successful pilot initiative, as this is one the most significant aspects of our MEG division which is energy sales. Our Sales and Financing divisions serve to help enable the transition from fossil fuels to EV for commercial fleet operators, with the ultimate strategic goal being our participation in the shift of energy consumption." About Ideanomics Ideanomics is a global company focused on facilitating the adoption of commercial electric vehicles and developing next generation financial services and Fintech products. Its electric vehicle division, Mobile Energy Global (MEG) provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity as well as financing and charging solutions. Ideanomics Capital includes DBOT ATS and Intelligenta which provide innovative financial services solutions powered by AI and blockchain. MEG and Ideanomics Capital provide our global customers and partners with better efficiencies and technologies and greater access to global markets. The company is headquartered in New York, NY, and has offices in Beijing, China. 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 1 Sun Seven Stars Investment Group (SSSIG) is the largest shareholder in Ideanomics and is controlled by Dr. Bruno Wu and his wife.
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