HAIKOU CITY, CHINA / ACCESSWIRE / April 6, 2023 / JX Luxventure Limited (NASDAQ:JXJT) just made two big deals with a major airline, China Southern Air Cross-Border E-Commerce (Hainan) Co., Ltd. (China Southern Airline). Through these memorandums of understanding (MOUs), JX Luxventure would partner with the China Southern Airline in connection with the exports of pre-owned electric vehicles (called new energy vehicles or NEVs) and the distribution of imported pet food.
Signing these MOUs positions JX Luxventure in two thriving markets. The pet food import market has seen significant growth in recent years. In 2021, China imported $540 million worth of pet food, which represents a 35-fold increase from 2015, to feed its burgeoning pet market. In 2020, China's pet food market was worth $6.72 billion, and it is estimated that the market will grow at 19.5% from 2021 to 2025, to reach $16.7 billion. Domestic pet food production is slow, however, and the United States remains China's largest importer of pet food.
Meanwhile, China's car export market has been growing steadily for years. In 2022, China finally overtook Germany to secure second place, as it exported a total of 3.1 million vehicles. Of those, 2.5 million were passenger cars. It is expected that China will soon be the world's leading car exporter, overtaking Japan and exporting 5.5 million cars by 2030. One driver of the industry's growth, which JX Luxventure is taking advantage of through its MOU with China Southern Airline, is the popularity of NEVs. China exported 679,000 NEVs in 2022, which represents an increase of 120% from 2021, and a research report from Citic Securities suggests this could increase to 2.5 million by 2030.
MOUs Position Luxury Services Company For Future Growth
JX Luxventure serves across a range of industries, providing luxury solutions to high-net-worth families, and its business segments include tourism, duty-free cross-border merchandise and eCommerce, and it already has more than 20 agreements with airlines to support its multiple business segments. The company has recently seen a period of extended growth as part of a three-year turnaround strategy. This period included revenue growth of more than 440% in 2021.
Now through these two MOUs, signed less than a week apart, JX Luxventure is signaling that it is ready to take the next step as a company. With over $16 billion in revenue, China Southern Airlines is the largest airline in China, serving around 110 million passengers yearly. In fact, as recently as 2020, it was the largest airline in the world.
Commenting on the pre-owned vehicles and pet food partnership, CEO of JX Luxventure, Ms. Sun "Ice" Lei, said, "We are pleased to enter into this MOU with China Southern Airline to leverage their distribution channels for selling imported pet foods and pre-owned vehicles. This partnership will enable us to expand our customer base and provide more high-quality products to pet owners in China. It's worth noting that this is the second major cooperation between JX Luxventure Limited and China Southern Airline in less than a week, which demonstrates our commitment to exploring new business opportunities and strengthening our strategic partnerships in China's growing market."
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Sun Lei, CEO
+ 86 18522080482
SOURCE: JX Luxventure Limited
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