Executive Summary / Key Takeaways

• Jiuzi Holdings, Inc. (JZXN) is undergoing a radical strategic transformation, pivoting from its struggling new energy vehicle (NEV) charging infrastructure business in China to an aggressive digital currency treasury strategy, alongside continued NEV network expansion.
• Historically focused on high-power DC fast-charging stations and integrated energy storage systems in China's lower-tier cities, JZXN has faced severe financial deterioration, marked by plummeting revenues and substantial net losses in recent years.
• The company's bold pivot includes a plan to acquire 1,000 Bitcoins over the next year and the appointment of a new COO to lead the integration of major cryptocurrencies into its balance sheet, aiming for risk control and yield optimization.
• While the core NEV charging business offers a foundational presence in a growing sector, its current financial performance is deeply concerning, making the digital asset strategy a high-risk, high-reward proposition for future value creation.
• Investors face a complex investment thesis, balancing the potential upside of a successful digital asset strategy against the significant operational and financial challenges of its traditional business and the inherent volatility of cryptocurrency markets.

A Dual Mandate: Powering EVs and Embracing Digital Gold

Jiuzi Holdings, Inc. (JZXN) has carved out a niche in China's burgeoning new energy vehicle (NEV) market, specializing in the provision of smart charging infrastructure. The company focuses on high-power DC fast-charging stations, ranging from 80kW to 160kW, complemented by integrated energy storage systems. This technological specialization is critical for supporting the rapid adoption of NEVs, particularly in China's lower-tier cities, where robust and efficient charging solutions are essential for alleviating range anxiety and promoting sustainable transportation. The strategic intent behind these high-power charging solutions is to offer faster turnaround times for EV users, a tangible benefit that directly enhances the user experience and supports the broader goal of carbon neutrality. The integration of energy storage systems further bolsters grid stability and can potentially optimize energy costs for the charging network, contributing to operational resilience.

The competitive landscape for NEV infrastructure and sales in China is intense, featuring formidable players like BYD (BYD), NIO (NIO), XPeng (XPEV), and Li Auto (LI). JZXN's business model, which historically included franchising and operating retail stores for NEVs and components, positions it as a localized player. This franchise approach offers a broader distribution network and potentially stronger customer relationships in specific regional markets, providing a qualitative advantage in market penetration compared to the vertically integrated manufacturing and sales models of giants like BYD. However, JZXN's smaller scale and retail-centric focus mean it lags behind competitors like NIO and XPeng in technological innovation, particularly in advanced vehicle features and comprehensive ecosystem services such as battery swapping. While JZXN's strategy emphasizes accessible retail and charging, it faces challenges in matching the cost efficiencies and extensive research and development investments of its larger rivals, which often translate into superior product performance and broader market reach.

Jiuzi Holdings' journey has been marked by a significant shift in fortunes. Incorporated in 2019, the company initially demonstrated positive financial performance, reporting a net income from continuing operations of $599,835 on total revenue of $9.29 million in 2021. However, the subsequent years brought substantial financial headwinds. The company recorded significant negative net income from continuing operations, with losses of -$4.54 million in 2022, -$4.77 million in 2023, and a staggering -$55.77 million in 2024. This precipitous decline was mirrored in its revenue, which plummeted to $1.40 million in 2024, and a substantial provision for doubtful accounts of $42.04 million in the same year, signaling deep operational challenges.

A Bold Pivot Amidst Financial Headwinds

In response to these severe financial pressures, Jiuzi Holdings announced a pivotal strategic shift in May 2025. The Board of Directors formally approved a plan to acquire 1,000 Bitcoins over the next year, utilizing a combination of additional stock issuance and cash purchases. This move signaled a clear intent to diversify the company's asset portfolio and explore new avenues for value creation beyond its traditional NEV business.

Further solidifying this new direction, in September 2025, the company appointed Dr. Douglas Edward Buerger as Chief Operating Officer (COO). Dr. Buerger brings over 30 years of experience in blockchain, artificial intelligence, and digital currency ecosystems, making him a critical hire for JZXN's ambitious new strategy. As COO, Dr. Buerger is tasked with leading the company's digital currency treasury strategy, which includes integrating Bitcoin (BTC), Ethereum (ETH), and other major cryptocurrencies into the company's balance sheet. The strategy also focuses on establishing a comprehensive treasury management framework with robust risk controls and yield optimization, alongside exploring participation in decentralized finance (DeFi) protocols and staking opportunities to enhance shareholder value. This strategic pivot introduces a new dimension to JZXN, positioning it as a company straddling both NEV infrastructure and an aggressive digital asset treasury.

Performance Under Pressure: A Look at the Numbers

The financial performance of Jiuzi Holdings paints a challenging picture, reflecting the significant operational hurdles it has faced. The company's revenue has seen a dramatic decline, with a 3-year growth rate of -85.8%. For the trailing twelve months (TTM), total revenue stands at a mere $97,465, a stark contrast to its earlier performance. Profitability metrics are deeply in negative territory, with a TTM gross profit margin of -3.90%, an operating profit margin of -275.93%, and a net profit margin of -270.31%. These figures underscore profound inefficiencies and significant losses from operations.

Net income for the TTM period is -$40.57 million, translating to a negative Earnings Per Share (EPS) of -$3.95. The company's Return on Equity (ROE) is a concerning -140.61%, indicating that it is destroying shareholder value. Cash flow generation also remains a significant challenge, with TTM operating cash flow at -$8.87 million and free cash flow at -$8.90 million. The balance sheet reflects these struggles, with retained earnings noted at -$77.79 million.

Despite these operational and profitability challenges, JZXN's current ratio stands at 4.19, suggesting adequate short-term liquidity, though another TTM current ratio is reported at 1.47. The company's debt-to-equity ratio is 0.14, indicating a relatively low level of debt compared to equity. However, the approved crypto asset investment policy, sanctioning up to US$1 billion for crypto acquisitions, significantly dwarfs the company's current cash position of $344,235 (TTM), implying that future acquisitions will heavily rely on additional stock issuance. This highlights the critical role of capital markets in funding the new digital asset strategy.

Outlook and the Dual Path Forward

Jiuzi Holdings' future hinges on the successful execution of its dual strategy. On one front, the company plans to continue expanding its intelligent charging network through 2026, aiming to contribute to carbon neutrality and the development of sustainable transportation. This commitment to its core NEV infrastructure business suggests an ongoing belief in the long-term potential of the sector, particularly in China's lower-tier cities.

Concurrently, the digital currency treasury strategy represents a bold, forward-looking initiative. CEO Tao Li emphasizes that Dr. Buerger's leadership will help JZXN build a "more resilient and return-driven digital asset system." Dr. Buerger himself notes that "digital assets are at a critical stage of institutional adoption" and sees an opportunity for JZXN to become a "key player in corporate Bitcoin strategy." The immediate target is the acquisition of 1,000 Bitcoins over the next year. This strategic pivot aims to diversify investment risk and potentially enhance shareholder value through exposure to a rapidly evolving asset class.

Risks and Competitive Realities

The investment thesis for JZXN is fraught with significant risks. The company's Altman Z-Score of -5.15 places it firmly in the distress zone, signaling a potential risk of bankruptcy within two years. Its stock exhibits high volatility, with a beta of 1.64, indicating greater sensitivity to market movements compared to the broader market.

The integration of cryptocurrencies introduces a new layer of risk, given the inherent volatility of digital asset markets and evolving regulatory uncertainties. There is substantial execution risk associated with the crypto policy; imprudent phasing into its authorized allocation could expose JZXN to significant losses. The new crypto strategy may also dilute the focus on, and potentially weaken the link between, the day-to-day performance of the EV charger business and the company's stock returns. To mitigate some of these risks, a dedicated "Crypto Asset Risk Committee" has been established under CFO Huijie Gao, tasked with overseeing policy implementation and reporting to the board. The company has also opted against self-custody for its crypto holdings, which could reduce certain operational risks.

In the competitive landscape, JZXN's smaller scale and reliance on a franchise model mean it faces an uphill battle against larger, more technologically advanced players in the NEV sector. While its localized approach offers some advantages in specific markets, it trails in overall efficiency, R&D investment, and product innovation compared to industry leaders. For instance, BYD's TTM gross profit margin of 0.19 and net profit margin of 0.05 stand in stark contrast to JZXN's deeply negative margins, highlighting a significant disparity in operational health and profitability. This competitive pressure, combined with the inherent risks of its new digital asset venture, makes JZXN a highly speculative investment.

Conclusion

Jiuzi Holdings, Inc. is at a critical juncture, attempting a profound transformation from a struggling NEV charging infrastructure provider to a hybrid entity with a significant digital asset treasury. The company's historical financial performance reveals deep operational challenges and substantial losses, necessitating a bold strategic pivot. While its core business in high-power DC fast-charging and integrated energy storage addresses a vital need in China's NEV market, its current financial health is precarious.

The foray into digital currencies, spearheaded by a new COO with extensive crypto expertise and a plan to acquire 1,000 Bitcoins, represents a high-stakes gamble for future value creation. This dual strategy introduces both potential for significant upside through exposure to a rapidly growing asset class and considerable risks stemming from cryptocurrency volatility and the company's own execution capabilities. For discerning investors, JZXN presents a complex narrative of a company striving for reinvention, where the success of its digital asset strategy will likely be the primary determinant of its future, overshadowing the ongoing challenges in its foundational NEV business. The path ahead is uncertain, demanding close scrutiny of both its operational execution in EV charging and its prudent management of its nascent digital asset portfolio.