I Visited ZJMY and Met President HAN Zhiming
I visited ZJMY headquarter in Beijing and met Mr. HAN Zhiming during late afternoon July 6 and the morning of July 7. I thank Mr. Han for accepting my request to meet him.
I visited many places and companies, and met people and friends on my trip to China during July 5 to July 14. Beijing was my first stop. My intention of visiting ZJMY was very simple: to let the company hear the cries of our longs.
To my surprise the company knows nothing about investorshub.com and what are posted on the site, and they do not pay attention to the performance of their stock on otc. I explained some of negative posts and they laughed and said don't worry the truth will be revealed and when they moved up to nasdaq all those negative comments will be silenced. I complained the company did not have any good communications with current shareholders in the US market and big price fluctuation during the otc period is not good for current shareholders and future performance when uplisted because the institutional investors pay attention to the share price history. They agreed. Mr. Han told me that they have so much progress in so many fronts. He will coordinate with JB to release the information as soon as possible.
Here are some of areas which were uncovered by this board and I can talk freely. I will wait for the company to release information about those areas which we never talked about before on this board.
Low speed EVs: The company confirmed their relationship with Long Star. ZJMY provides 3 Dian system (Dian for electric in Chinese, dianchi - electric reservoir or battery, dianji - electric motor, and diankun - electric control) to Long Star and Long Star provides chassis and assembling of vehicles for ZJMY. Long star has two sites, one in Jinan, Shangdong province and the other in Nannin, Guangxi Zhuang Autonomous Region. The two sites cover vast areas of south and north China. Each site has capacity of 300 vehicles per day.
The low speed EV market is huge in China. If you have a chance to visit China you will understand why. Just imagine millions of farmers drive their low speed cars to their field from home and drive back. ZJMY's low speed cars are in high demand. ZJMY already sold many low speed cars, can't remember the exact number but it is in multitudes of thousands since April.
I made an appointment with Long Star to visit their manufacturing plant, but did not make it because all high speed train tickets were sold out on that day.
High speed SUV: ZJMY has a contract in place with Chery to produce the V3 SUV by Chery. It is already in production and will be released into the market in August. The Department of Industry and Information published listing of new EV brands every month since January 2017. ZJMY expects getting their listing early August, could be the first Friday of August. The company can sell the SUV now but will not get government subsidies without the listing.
This EV is for the taxi market and mass market as well. I talked to taxi drivers in Beijing, Nanjing, Shanghai, and Xi'An. All of them expressed their disbelief that EV will become popular in their cities, mainly because of short range. One guy told me that if you buy a BYD EV starting with 200km range, after two years the range drops to 160-180km. It is typical for taxi driver to run 400-500km per shift. I told the guy that there is a company in Beijing that makes EV with 500km range and it uses battery swapping technology. He said that it perfect for their business. The driver in Xi'An told me a different story. All the taxi cars are from BYD and uses natural gas as fuel. Because BYD produces cars in Xi'An and the local government forces all taxi companies to buy BYD to support local economy.
The Chinese government gives many incentives for mass market to buy electric cars, these include the EV coming along with free registration (if you buy a traditional fuel car you have to pay something around 10,000 USD for registration), free allocated parking space, etc. I see the huge mass market for our 500km SUV and 600EV in development.
The 100,000 Free Buses: It is actually 16-18 seat commuter minibus. The company will produce, deploy to the street, and operate the minibus at the company's cost. The company will get revenue from advertisement. The bus is designed to have four walls installed with LED screens and play ads all the time along its route. This is not for long distance transportation but for 'mile commute' in cities typically for people moving between home and bus station or subway station. The riders get free ride but will be bombarded with all kinds of commercials. The company already studied the market, made the sample minibus, has full support from governments at all levels, and has many advertisement companies waiting for their full operation. The cost of making, maintenance and operating the minibuses is very low but the revenue generating from advertisement is very lucrative, according to the company. We might see JB&ZJMY plays an important role in advertisement space in a few years.
Logistic trucks (delivery box trucks): The company is in advanced planning to work with a manufacturer to produce this type of vehicles. We have to wait for the details of progress and order quantities from the company in the near future.
Electric buses: This is related to the bus exterior design jobs we found. ZJMY has confirmed that they have contract with Chery in Guiyang, Guilin to produce unknown amount of electric buses. The company will release the details soon.
I originally had a plan to meet HUANG Hua in Beijing, but she is stationed in Harbin and could not make it. JB acquired a hot-spring resort and properties in Harbin area and Huang is providing legal assistance during the transition stage. So I could not get any information from JB side. Both JB and ZJMY are in fast growing period. I get a feeling that they are stretching too thin at this moment. ZJMY used to share the fifth floor with another company in the cultural industry park building. Now they took over the fifth floor, the fourth floor and a store front on the first floor, and they will take more space when more hires are in.
ZJMY expressed their interest in registering a company in the US and have a show room for their products as the first step entering the US EV market. I thought this could be their long term objective. I'm surprised that this is already in their plan.
I'm limited to one post a day, not be able to reply your pm, and I can't talk freely on some progress the company is not ready to release.
I make a living by digging the truth and finding cures for sickness, I could be wrong in my understandings but I do not make up stories and spread falsehood.
I got from the company a fifty-page book of business plan on the third generation electric vehicle manufacturing and accompanying system construction project, dated November 2016. I will try to translate it into English and post it here if time allows.