NEW YORK, Nov. 11, 2019 /PRNewswire/ -- Ideanomics
(NASDAQ: IDEX) ("Ideanomics" or the "Company"), has today
announced a general update of its MEG activities, as well as
details of its innovation in the lease financing of EVs. The new
financing programs will enable servicing of existing and pending
sales orders, as well as help the commercial EV market counter the
anticipated withdrawal of government subsidies for electric
vehicles.
With the EV industry quickly evolving, the need for tailored
financing for corporate fleet operators has become an area
requiring innovation and development. Traditional lease financing
products have not kept up with the pace of change, meaning they
were no longer meeting the market demand. Leading EV battery makers
are taking a leading position by implementing buyback programs
which allow for financing of battery power packs at 100% of
purchase price, marking a breakthrough in how EVs are financed.
EVs differ considerably from fossil fuel vehicles in that there
is not yet a dependable residual value, due to the portability of
the battery power pack. This has required a rethink in the lease
financing space, with Ideanomics' MEG division helping to bring to
market a next-generation of financing products for the benefit of
fleet operators, to help them transition to EV and enjoy both
reduced energy costs and reduced emissions versus diesel and
gasoline-powered vehicles.
MEG also announced increased EV revenue activities for 2020, due
to the implementation of the new financing products enabling a
faster time to market for fleet customers. Ideanomics anticipates
revenues for its MEG division in the $2B range for fiscal 2020, with operating margins
in a 6% range, after costs for scaling operations. These revenues
will be derived from the spread on group buying activities, as well
as fees derived from lease financing and ABS refinancing
activities.
"We anticipate finalizing the structuring of the new financing
products in Q4 of this year, with roll-out in Q1 2020, and an
expectation for these products to impact our revenue activities
from Q2 2020 onwards. We will continue with our existing EV
financing programs through Q4 2019, and Q1 2020, so that we can
deliver on the orders already underway, such as the Taxi orders for
Chengdu," said Alf
Poor, CEO of Ideanomics. "The industry is evolving rapidly,
and it was clear to us the financial products currently available
were not correctly aligned with the EV industry. This required a
re-think, based on the projected value of electric vehicles, and
resulted in educating existing players in the lease financing
industry that the battery is the primary future value asset in
electric vehicles. The MEG management team, which has only been in
place for the past 7 weeks or so, has been at the forefront of
identifying the current shortcomings and talking with partners
throughout the value chain to help adapt the financing products
available. With help from the battery manufacturers, through an
attractive buyback program, and participation from utilities and
other partners with an interest in EV fleet financing, we have been
able to tailor products more in tune with the needs of fleet
operators. With our flexible financing programs, manufacturer
alliance, and battery partners we will ensure that our fleet
customers have the best models, the best pricing, and the best
payment options available anywhere."
MEG has also announced a clear focus on its areas of activity in
the commercial EV industry, which are four distinct commercial
vehicles types with supporting income streams: 1) Closed-area heavy
commercial, in areas such as Mining, Airports, and Sea Ports; 2)
Last-mile delivery light commercial; 3) Buses and Coaches; 4)
Taxis. MEG focuses on commercial EV rather than passenger EV, as
commercial EV is on an accelerated adoption path when compared to
consumer EV adoption – which is expected to take between ten to
fifteen years. Additionally, commercial EV represents a vastly
higher portion of energy consumption.
The company has previously announced, among other deals, 500,000
commercial vehicle orders over 3 years which were acquired through
its MEG stakeholder GCL. These order activities will form part of
the those fulfilled under the new finance programs. MEG further
anticipates its battery, sales, and financing activities to be the
main revenue streams in 2020. Other activities, such as energy
sales through pre-paid discount electricity purchasing and charging
networks, will continue to develop in 2020. Currently, it sees
significant innovation in the charging space which is improving the
charging times when compared to existing charging apparatus. It is
working with industry partners on the time to market, with
indications suggesting early revenues commencing in the second half
of 2020 and developing from that point forward.
Ideanomics will provide further updates on its MEG division, as
well as its other activities, in the upcoming Q3 earnings call on
Thursday, November 14, 2019. A press
release will be issued at approximately 8am
ET, followed by a conference call at 8:30am (9:30pm
Singapore Time).
CONFERENCE CALL INFORMATION
Webcast Link: At the Ideanomics (www.ideanomics.com)
corporate website or here: Earnings Call Website Link
Dial-in Number: (Toll-Free US & Canada): 877-407-3107 or 201-493-6796; for
China:
+86-400-120-2840 Ideanomics management encourages
investors and analysts to email their questions in advance of the
webcast/call and time permitting management will take further
questions during the live Q&A session. Please
email ir@ideanomics.com
A replay of the earning call will be available soon after the
conclusion of the event.
About Ideanomics
Ideanomics is a global Financial
Technology (Fintech) company for transformative industries.
Ideanomics combines deal origination and enablement with the
application of technologies such as artificial intelligence,
blockchain, and others as part of the next- generation of smart
financial services. Our projects in New Energy Vehicle markets,
Fintech, and advisory services provide our customers and partners
better efficiencies, technologies, and access to global
markets.
Ideanomics, through its investments, along with its partners
curate innovation around the globe through hubs and centers that
foster a pipeline of technological excellence in cleantech,
fintech, tradetech, agritech, regtech, insuretech, playtech,
healthtech, cyber security, and more.
The company is headquartered in New
York, NY, and has offices in Beijing, China. It also has a planned global
center for Technology and Innovation in West Hartford, CT, named Fintech Village.
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
Tony Sklar, VP of Communications
55 Broadway, 19th Floor New York, New
York 10006
Email: ir@ideanomics.com
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