AIHS’s Strategic Co-operation Agreement with Sichuan Hongyu Enterprise
Announced in early August, the 3 year strategic co-operation agreement aims to facilitate the purchase of EV’s for potential use in the ride-hailing market. The agreement also aims to promote both companies “with a goal to further expand its automobile transaction and related services business.” Investor interest in EV companies has surged over the past few years. Hence, industry related companies have seen incredible stock growth. With AIHS surging on no related news, we can assume investors have peaked their interest on the EV potential moving forward.
“Finally, we believe that our cooperation with Hongyu Auto will enable us to give our ride-hailing drivers more cost-effective access to electric vehicles which aligns with our social responsibility to lower overall carbon footprint. We are excited about this next step and look forward to finding more innovative ways to drive long-term sustainable growth for our shareholders.”
Mr. Xi Wen, Chief Executive Officer of Senmiao – Public announcement here.
AIHS capturing market share in Chinese Ride-hailing
Ride-hailing is mentioned frequently throughout AIHS’s recent public announcements. Ride-hailing simply means the process of hiring a driver to take you to a specific destination. Just like an Uber or a Taxi, ride-hailing has a lot of room for growth in China’s growing cities. AIHS integrated service aims to target second and third tier cities of Mainland China, which are currently growing at a rapid rate. The greatest threat to AIHS ride-hailing ambitions will be the extended economic impact of the COVID-19 virus. A second wave of COVID-19 in Mainland China would subdue any progression made in the ride hailing industry, which of course would be a threat to their wishful ambitions.
“We continue to believe in the huge long-term market opportunity resulting from the rapid development of the online ride-hailing service industry in China… To summarize, we believe we are executing on our goal in becoming an outstanding and leading provider of automobile transaction and related services to the growing online ride-hailing eco-system in China.”
Looking forward into 2021 and beyond for AIHS
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The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.