UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of March 2022

 

Commission File Number: 001-40405

 

JIUZI HOLDINGS INC.

 

No.168 Qianjiang Nongchang Gengwen Road, 15th Floor

Economic and Technological Development Zone

Xiaoshan District, Hangzhou City

Zhejiang Province 310000

People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F     Form 40-F 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): 

 

 

 

 

 

 

Exhibits

 

Exhibit
Number
  Description of Exhibit
99.1   Press release – Jiuzi Holdings, Inc. Reports Full Year 2021 Financial Results.

 

1

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  JIUZI HOLDINGS INC.
     
Date: March 16, 2022 By:

/s/ Shuibo Zhang

    Name:  Shuibo Zhang
    Title: Chief Executive Officer

 

 

2

 

Exhibit 99.1

 

Jiuzi Holdings, Inc. Reports Full Year 2021 Financial Results

 

HANGZHOU, China, March 15, 2022 -/PRNewswire/- Jiuzi Holdings, Inc. (NASDAQ: JZXN; the "Company"), a new energy vehicles franchisor and retailer under the brand name "Jiuzi" in China, today reports its fiscal year 2021 financial results ended October 31, 2021.

 

First-Half 2021 Highlights:

 

Net revenues increased by 16.15% or $1.33 million from $8.21 million for the fiscal year ended October 31, 2020 to $9.54 million for the fiscal year ended October 31, 2021.

 

Gross profit for new energy vehicle sales increased by 36.20% or $0.01 million from $0.03 million for the fiscal year ended October 31, 2020 to $0.04 million for the fiscal year ended October 31, 2021.

 

Cash, cash equivalents and restricted cash was $7.37 million as of October 31, 2021, compared to $0.76 million as of October 31, 2020.

 

The Company source New Energy Vehicles, or NEVs, through more than twenty NEV manufacturers, including BYD, Geely and Chery, as well as battery/component manufacturers such as Beijing Zhongdian Boyu, Shenzhen Jishuchongke and Youbang Electronics, which focus on manufacturing charging piles, and Guoxuan Gaoke, and Futesi in battery production.

 

   For fiscal years ended October 31, 
($ millions, except per share data, differences due to rounding)  2021   2020   % Change 
Net revenue  $9.54   $8.21    16.15%
 Selling, general and administrative expenses  $3.31   $1.65    100.74%
Income from operations  $1.32   $4.37    (69.87)%
Net income  $0.78   $3.42    (77.27)%
Net income per share – Basic and Diluted  $0.04   $0.23    (82.61)%

 

Mr. Shuibo Zhang, CEO of JZXN commented: "We are excited to announce results for another year of great success. Through our operating franchise stores and one company-owned store in China, we and our franchisee partners managed to maintain a high service standard and further refine our operating standards and marketing concepts together in 2021, which manifests the fundamental spirit of the “Jiuzi brand.”

 

“Despite the continued adverse impact of the COVID-19 pandemic, we were able to expand our revenue by 16.15% to $9.54 million, thanks to a series of business initiatives, such as the integration of new growth strategies and partnerships with industry peers. The Company is also developing a platform of customer and vehicle management system that is expected to launch next year to serve all our franchise stores and entire operation systems. We believe such measures will continue to establish a solid foundation as we keep expanding our scale of sales and business operation in China.”

 

Mr. Francis Zhang, Chief Financial Officer, commented, "We were able to deliver strong development momentum for fiscal year 2021 after our successful listing in the U.S. market. Although COVID-19 continues to have a lingering adverse impact on our business operation, we managed to grow net revenue from NEV sales by 262.24% to $1.44 million, franchise initial fees by 3.60% to $8.09 million during the past fiscal year, largely thanks to our growing talents, the increased number of automobile brands we cooperate with, and the gradually recovered NEV industry that has been generously subsidized by national and local favorable policies. Looking ahead, we plan to further improve our strong cash position by providing a multi-dimensional service platform and one-stop experience that cover both the online vehicle selection and purchases and offline vehicle delivery and maintenance. We are confident that the Company will continue to create sustainable value and great financial returns for our shareholders."

 

 

 

 

Full-year 2021 Financial Results

 

Net Revenue

 

The following table lists the calculation methods of gross profit and gross profit margin of each type of revenue:

 

   For the years ended October 31, 
$ millions, differences due to rounding  2021   2020   Amount   % 
New energy vehicle sales                    
Net revenue  $1.44   $0.40    1.04    262.24%
Cost of revenue   1.40    0.37    1.03    282.03%
Gross profit  $0.04   $0.03    0.01    36.20%
Gross profit margin   3.03%   8.05%   -5.02%   -62.40%
                     
Franchise initial fees                    
Net revenue  $8.09   $7.81    0.28    3.60%
Cost of revenue   3.51    1.82    1.69    92.38%
Gross profit  $4.58   $5.99    -1.40    -23.45%
Gross profit margin   56.64%   76.65%   -20.01%   -26.11%
                     
Franchisees’ royalties                    
Net revenue       $-           
Cost of revenue        -           
Gross profit       $-           
Gross profit margin        -           
                     
Total                    
Net revenue  $9.54   $8.21    1.33    16.15%
Cost of revenue   4.91    2.91    2.72    124.11%
Gross profit  $4.63   $6.02    -1.39    -23.13%
Gross profit margin   48.52%   73.32%   -24.80%   -33.82%

 

Our net revenues were $9.54 million for year ended October 31, 2021 as compared to $8.21 million in 2020, an increase of $1.33 million, or 16.15%. The increase was mostly due to the pandemic being effectively controlled in China, the increase in the initial franchise fee revenue, and the recovering NEVs sales market.

 

NEV sales include the sales of the NEVs in JZXN’s Shangli store and sales of NEVs to our franchisees. For the year ended October 31, 2021, our NEV sales increased by $1.04 million, or 262.24%, from $0.40 million for the year ended October 31, 2020 to $1.44 million for the year ended October 31, 2021. In addition to the above mentioned reasons, the increase was due to the fact that after our listing, the strength of the Company has been further enhanced, our talent team has been growing, and the number of automobile brands we cooperate with has gradually increased.

 

2

 

 

Cost of revenue was $1.40 million for the year ended October 31, 2021, an increase of $1.03 million or 282.03%, from $0.37 for the year ended October 31, 2020. The increase of cost of revenue was resulted from the growth in sales of new energy vehicles.

 

Gross profit and gross profit margin were $0.04 million and 3.03% for the year ended October 31, 2021 as compared to $0.03 million and 8.05% in 2020, respectively. The decrease of gross profit margin was resulted from the price increase of NEVs by suppliers to make up for the losses caused by the pandemic. In order to accelerate the expansion of the market, we did not increase the price synchronously, thus resulting in a relatively lower gross margin.

 

The initial franchise fee revenue increased by $0.28 million or 3.60% from $7.81 million for the year ended October 31, 2020 to $8.09 for the year ended October 31, 2021. As of October 31, 2021 and 2020, we have entered into franchise agreements with 87 and 60 franchisees, respectively. The increase was mostly attributed to people’s increasing interest in investment and consumption of NEVs, and that the NEV sector has renewed investor interest as we gather more attention from investors. As of October 31, 2021, we have entered into franchise agreements with 87 franchisees.

 

Cost of revenue was $3.51 million for the year ended October 31, 2021, an increase of $1.69 million or 92.38% from $1.82 million for the year ended October 31, 2020. The increase was due to an increase in the number of our franchise stores.

 

Gross profit and gross profit margin were $4.58 million and 56.64% for the year ended October 31, 2021, as compared to $5.99 million and 76.65% in 2020, respectively. Such change was the result of a combination of the changes as discussed above.

 

We may collect franchisees’ royalties based on the 10% of net income from our franchisees. As of October 31, 2021, we did not generate any revenues through franchisees’ royalties as our franchisees have not started to generate net income for the period.

 

Selling, general and administrative expenses

 

We incurred selling, general, and administrative expenses of $3.31 million for the year ended October 31, 2021, as compared to $1.65 million for the year ended October 31, 2020, an increase of $1.66 million, or 100.74%. The increase is due to the increase in paid salaries, conference fees, travel and advertising expenses after we went public, as well as subscription to executive insurance and newly rented office space.

 

Interest Expenses

 

Interest charges and bank charges are mainly from bank transfer charges and deposit interest offset. Interest expense as of October 31, 2021 and 2020 were approximately -$5,734 and $3,490, respectively.

 

Provision for Income Taxes

 

Provision for income tax was $0.55 million during the year ended October 31, 2021, a decrease of $0.43 million or 44%, as compared to $0.97 million for the year ended October 31, 2020. The decrease was mainly due to the decrease in income before income tax provision, which was $1.32 million for the year ended October 31, 2021 as compared to $4.40 million for the year ended October 31, 2020.

 

Net Income

 

Our net income decreased by $2.65 million or 77.27%, to $0.78 million for the year ended October 31, 2021, from $3.42 million for the year ended October 31, 2020. Such change was the result of the combination of the changes as discussed above.

 

3

 

 

Basic and diluted earnings (loss) per share

 

Basic and diluted earnings per share was $0.04 for the year ended October 31, 2021, compared to basic and diluted earnings per share of $0.23 in 2020.

 

Cash and cash equivalents

 

As of October 31, 2021, the Company had cash, cash equivalents and restricted cash of $7.37 million, compared to $0.76 million as of October 31, 2020.

 

Recent developments

 

On February 23, 2022, the Company announced that on January 6, 2021, through its wholly-owned subsidiary, Zhejiang Jiuzi New Energy Vehicles Co., Ltd., it entered into a one-year strategic cooperation agreement with Jiangsu Jemmell New Energy Vehicle Industry Co., Ltd., a leading Chinese electric vehicle maker and battery assembler.

 

On February 10, 2022, the Company announced that on December 25, 2021, through its wholly-owned subsidiary, Zhejiang Jiuzi New Energy Vehicles Co., Ltd., it entered into a two-year strategic cooperation agreement with Zhejiang Farizon Zhitong Technology Co. Ltd. ("Farizon Zhitong”). Farison Zhitong is a domestic new energy commercial vehicles distributor wholly owned by Zhejiang Geely New Energy Commercial Vehicle Group Co. Ltd., which is a commercial vehicle maker owned by China Zhejiang Geely Holding Group, a leading privately operated auto manufacturer.

 

On January 19, 2022, the Company announced that its wholly-owned subsidiary, Zhejiang Jiuzi New Energy Vehicles Co., Ltd., has won the "2021 Annual Industry Leading Enterprise" Award during the 5th Boao Enterprise Forum held between January 8-9, 2022 in Hainan, China. Zhejiang Jiuzi has been recognized for its outstanding brand influence and strong business performance.

 

On January 13, 2022, the Company announced that it was awarded RMB 10 million cash subsidies by Xiaoshan District government of China's Hangzhou City as part of the government-led initiatives to recognize achievements by publicly listed companies and facilitate further sustainable growth of such locally headquartered enterprises.

 

On January 11, 2022, the Company announced that, on December 23, 2021, through its wholly-owned subsidiary, Zhejiang Jiuzi New Energy Vehicles Co., Ltd., it entered into a two-year strategic cooperation agreement with Shanghai Zhongtongji E-Commerce Co. Ltd., a leading domestic E-Commerce and retail services provider founded by senior management of ZTO Express (NYSE: ZTO).

 

On December 15, 2021, the Company announced that on November 26, 2021, through its wholly-owned subsidiary, Zhejiang Jiuzi New Energy Vehicles Co., Ltd., it has entered into a sales cooperation agreement with Brilliance Xinri Automobile Sales Co. Ltd., a brand distributor of China's leading electric vehicles.

 

On December 07, 2021, the Company announced that it entered into a cooperation agreement with Zhejiang Youxing New Energy Co., Ltd., the sole nationwide distributor of Chongqing Ruichi Automobile Industry Co., Ltd. for institutional clients.

 

On November 08, 2021, the Company announced that it managed to grow the number of franchise stores by over 40% during the half year between April 1 and October 31, 2021 and has been discussing with about 12 new brands regarding potential collaborations during the same period.

 

4

 

 

On October 25, 2021, the Company announced that it entered into strategic cooperation agreement with EGO Group Co., Ltd., a leading industry park operator in China.

 

On October 14, 2021, the Company announced that Jiuzi Southern China Operation Center, also known as Nanning Jiuzi New Energy Operation Management Center, officially commenced its operation on September 29, 2021, in an effort to expand the Company's market share in the Southern China.

 

On September 29, 2021, the Company entered into a strategic cooperation agreement with Shaanxi Tongjia Auto Co., Ltd., a well-known automobile brand of Shaanxi Automobile Group Co., Ltd.

 

About Jiuzi Holdings, Inc.

 

Jiuzi Holdings, Inc., headquartered in Hangzhou, China, and established in 2017, franchises and operates retail stores under the brand name "Jiuzi" to sell New Energy Vehicles ("NEVs") in third-fourth tier cities in China. The Company majorly sells battery-operated electric vehicles, and sources NEVs through more than twenty NEV manufacturers. It has 37 operating franchise stores and one company-owned store. For more information, visit the Company's website at http://www.zjjzxny.cn/.

 

Forward-Looking Statements

 

All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the SEC.

 

For more information, please contact:

 

Janice Wang

EverGreen Consulting Inc.

Email: IR@changqingconsulting.com

Phone: +1 571-464-9470 (from U.S.)

+86 13811768559 (from China)

 

5

 

 

Jiuzi Holdings, Inc.

Consolidated Balance Sheets

As of October 31, 2021 and 2020

 

   October 31,   October 31, 
   2021   2020 
ASSETS        
Current Assets        
Cash and cash equivalents   7,372,895    764,492 
Short-term investment   1,180,772    - 
Accounts receivable   6,566    14,875 
Accounts receivable – related party   529,407    1,518,264 
Due from related parties   367,549    173,643 
Inventories   266,106    154,586 
Advances to suppliers   1,594,278    569,023 
Loans receivable from related parties, net   9,673,893    2,999,261 
Other receivables and other current assets   1,228,738    280,789 
Total current assets   22,220,204    6,474,933 
Non-current Assets          
Property, plant and equipment, net   373,108    101,877 
Intangible assets, net   18,053    16,436 
Other non-current assets   558,702    2,349 
Operating lease right of use asset   846,200    - 
Loans receivable from related parties, net   4,136,657    5,308,919 
Total non-current assets   5,932,720    5,429,581 
TOTAL ASSETS   28,152,924    11,904,514 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current liabilities          
Accruals and other payables   595,364    82,182 
Accounts payable – related party   44,366    102,411 
Accounts payable   15,695    872 
Taxes payable   2,923,987    2,772,447 
Operating lease liabilities - current   163,148    - 
Contract liability   114,916    116,977 
Contract liability – related party   164,804    614,449 
Total current liabilities   4,022,280    3,689,338 
Non-current liabilities          
Operating lease liabilities - non-current   537,432    - 
Deferred income   1,263,840    - 
Total non-current liabilities   1,801,272    - 
TOTAL LIABILITIES   5,823,552    3,689,338 
           
COMMITMENTS AND CONTINGENCIES   -    - 
           
Shareholders’ equity          
Ordinary shares (150,000,000 shares authorized, par value $0.001, 21,426,844 shares issued and outstanding as of October 31, 2021)*   21,427    15,000 
Additional paid in capital   13,150,667    308,939 
Statutory reserve   891,439    690,624 
Retained earnings   7,459,539    6,846,609 
Accumulated other comprehensive income/ (loss)   541,615    (60,426)
Total equity attributable to Jiuzi   22,064,687    7,800,746 
Equity attributable to noncontrolling interests   264,685    414,430 
Total Stockholders’ equity   22,329,372    8,215,176 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   28,152,924    11,904,514 

 

6

 

 

Jiuzi Holdings, Inc.

Consolidated Statements of Income and Comprehensive Income

For the years ended October 31, 2021, 2020 and 2019

 

   For the
Year ended
   For the
Year ended
   For the
Year ended
 
   October 31,   October 31,   October 31, 
   2021   2020   2019 
Revenues, net   1,606,425.00    258,834.00    839,744 
Revenues – related party, net   7,930,562    7,951,761    7,138,355 
Total Revenues   9,536,987    8,210,595    7,978,099 
                
Cost of revenues   1,370,829    217,807    857,097 
Cost of revenues – related party   3,538,875    1,972,961    2,259,079 
Total cost of revenues   4,909,704    2,190,768    3,116,176 
                
Gross profit   4,627,283    6,019,827    4,861,923 
                
Selling and marketing expense   17,542    29,887    40,723 
General and administrative expenses   3,292,606    1,619,125    1,101,415 
Operating income (loss)   1,317,135    4,370,815    3,719,785 
                
Non-operating income (expense) items:               
Other income (expense), net   1,993    30,610    17,134 
Interest income   5,734    390    11,895 
Interest expense        (3,880)   (1,765)
    7,727    27,120    27,264 
                
Earnings (Loss) before tax   1,324,862    4,397,935    3,747,049 
                
Income tax   546,825    974,393    540,782 
                
Net income (loss)   778,037    3,423,542    3,206,267 
Less: loss attributable to non-controlling interest   (35,708)   (27,385)   (33,790)
Net income (loss) attributable to Jiuzi   813,745    3,450,927    3,240,057 
                
Earnings (Loss) per share               
Basic   0.04    0.23    0.22 
Diluted   0.04    0.23    0.22 
                
Weighted average number of ordinary shares outstanding*               
Basic   17,580,461    15,000,000    15,000,000 
Diluted   17,580,461    15,000,000    15,000,000 
                
Net income (loss)   778,037    3,423,542    3,206,267 
                
Other comprehensive income (loss):               
Foreign currency translation (loss) income   607,057    146,303    (116,437)
Total comprehensive income (loss)   1,385,094    3,569,845    3,089,830 

 

7

 

 

Jiuzi Holdings, Inc.

Consolidated Statements of Cash Flows

For the years ended October 31, 2021, 2020 and 2019

 

   For the
Year ended
   For the
Year ended
   For the
Year ended
 
   October 31,   October 31,   October 31, 
   2021   2020   2019 
Cash flows from operating activities            
Net income   778,037    3,423,542    3,206,267 
Depreciation and amortization   55,243    20,182    8,582 
Provision for doubtful accounts   (13,931)   11,474    32,717 
Amortization of right-of-use asset   40,286    -    - 
Provision for credit losses   309,024    305,128    61,277 
Imputed interest expense   724,338    762,113    35,812 
Loss from disposal of assets   4,082    -    - 
Changes in assets and liabilities               
(Increase) decrease in accounts receivable   8,958    37,809    (25,367)
(Increase) decrease in accounts receivable – related party   1,092,111    (488,494)   (299,062)
(Increase) decrease in inventories   (103,928)   73,001    104,986 
(Increase) decrease in loans to related parties   (6,129,775)   (4,982,838)   (37,917)
(Increase) decrease in due from related parties   (185,084)   -    - 
(Increase) decrease in other current assets   (1,949,313)   10,435    (164,659)
(Increase) Decrease in other non-current assets   (553,867)   -    - 
(Decrease) increase in accrued and other liabilities   507,206    22,843    (15,540)
(Decrease) increase in account payable   14,720    (10,306)   - 
(Decrease) increase in accounts payable – related party   (62,511)   91,841    1,422 
(Decrease) increase in taxes payable   23,271    1,474,958    992,328 
(Decrease) increase in contract liability   (7,437)   20,370    (4,925)
(Decrease) increase in contract liability – related party   (476,008)   (256,761)   (4,978,756)
(Decrease) increase in operating lease liabilities   (144,998)   -    - 
(Decrease) increase in deferred income   1,258,439    -    - 
Net cash generated by (used in) operating activities   (4,811,137)   515,297    (1,082,855)
                
Cash flows from investing activities               
Purchase of fixed assets   (306,576)   (26,778)   (7,087)
Purchase of intangible assets   (3,004)   -    (15,964)
Acquisition of investment   (1,175,726)   -    - 
Refund of security deposits   -    490    12,854 
Net cash generated by (used in) investing activities   (1,485,306)   (26,288)   (10,197)
                
Cash flows from financing activities               
Proceeds from owner’s injection of capital   38,916    9,046    224,946 
Stock proceeds for cash   12,809,240    -    - 
Proceeds from (Repayment to) related party   -    (173,102)   161,191 
Net cash provided by (used in) financing activities   12,848,156    (164,056)   386,137 
                
Net increase (decrease) of cash and cash equivalents   6,551,713    324,953    (706,915)
                
Effect of foreign currency translation on cash and cash equivalents   56,690    (2,675)   (5,314)
Cash, cash equivalents, and restricted cash – beginning of period   764,492    442,214    1,154,443 
Cash, cash equivalents, and restricted cash – end of period  $7,372,895   $764,492    442,214 
                
Supplementary cash flow information:               
Interest received  $5,734   $390   $11,895 
Interest paid  $-   $3,880   $1,765 
Income taxes paid  $295,729   $-   $-