DCSX has approved the listing of a maximum of 60 million shares of Lujie EV Group Limited (DCSX Symbol: LJ99) @ USD 0.305 with an initial market capitalization of USD 18.3 million.  Biztrack Consultants Private Limited is the mandated Listing Advisor.

Lujie EV Group Limited is a BVI company, its sole purpose for its incorporation was to hold 100% of the operating entity founded on 7 August 2015, with actual business in Nanyang City, Henan Province in China. The Group earns its revenue and cash inflows from the sales of its products, namely electric-powered motorcycles and LSEVs to customers. The Group manufactures the products it sells at its own factory located at its principal place of business. The Group’s net income before taxes is derived after deducting expenses such as the costs to manufacture the products sold, sales & marketing expenses, and administration & other expenses. The Group currently employs 120 full-time staff, including 10 engineering and 50 production staff. Its staff strength is not subject to any seasonal fluctuation. Directors are bullish on the prospects of the motorcycle and LSEV industries in China, notwithstanding that these are very competitive industries that are currently facing a very challenging regulatory environment. To develop the Group moving forward, Directors have identified three major areas which the Group, will focus on in the near term covering the period from 2021 to 2024: (a) Achieve an optional product mix; (b) Streamline and strengthen its marketing; (c) Implement a set of technical objectives. Directors and the Group’s management team have set an internal target to achieve an increase in earnings and revenues of 12% and 8% respectively per year for each of the next three to five years, and barring unforeseen circumstances, have good expectations that these targets can be achieved.

The Company’s application to DCSX is to list the Shares on DCSX by way of an equity listing. No new capital will be raised by the Company as a result of the Listing. Nonetheless, Directors believe that the listing of the Shares on DCSX is beneficial for the Group and its shareholders because a listing on DCSX will:(a) allow Shareholders who may wish to trade their shares through a stock exchange to do so;(b) broaden the Company’s shareholder base;(c) facilitate the Group to raise further capital when such additional capital is required to expand the Group’s business operations or for such other purposes as they may arise; and(d) make the Company a more attractive investment target to suppliers, customers, and other strategic partners because the Company accepts and submits itself to the regulations under the Listing Rules, particularly on issues such as continual disclosures and corporate governance. This will allow for these other stakeholders to take equity stakes in the Company so that their interests are aligned with those of the Company and the Group.

Further details about the business can be found on our Markets page on this website under Equities Symbol LJ99.