By Will Feuer
The shares of Happiness Development Group Ltd. more than doubled in premarket trade after the China-based company announced it had entered into a strategic cooperation agreement with Fujian Yiluba Automobile Service Consulting Co. to sell 2,000 new energy vehicles over the next three years.
Happiness Development Group produces and sells nutritional products based on Chinese herbal extracts and other ingredients. It says it also sells cars through its subsidiary Taochejun. The company also offers e-commerce solutions.
If Fujian Yiluba Automobile Service Consulting, a subsidiary of Yichebao Development Co., buys the 2,000 cars from Taochejun, the total value would be around $30 million, Happiness Development Group said.
“The Taochejun brand and its distribution ability are recognized by a number of automakers, major auto trade companies and now a major auto service company. We believe that with the increase in orders, the auto business of HAPP will achieve optimistic results for years to come,” said Happiness Development Group General Manager Xuezhu Wang.
Shares of Happiness Development Group more than doubled to 38 cents per share. Based on Tuesday’s market close, the company had a market valuation of around $14 million after falling nearly 70% so far this year.
Write to Will Feuer at [email protected]