Autozi Internet Technology (Global) Ltd. (NASDAQ: AZI) and Velocar Ltd., a European supply‑chain service provider headquartered in Tianjin, China, have entered into a cooperation framework that aims to generate roughly US$500 million in revenue over the next three years. The partnership combines Velocar’s established vehicle circulation, distribution networks and end‑market services across Europe with Autozi’s digital supply‑chain platform, industry resource integration and capital‑operations capabilities. Discussions began six months ago and the formal business partnership was finalized three months prior to the announcement.
Autozi’s financial position underscores the strategic importance of the deal. The company reported $156.47 million in revenue for the last twelve months and $124.7 million for fiscal year 2024, a 9.9% increase from FY 2023. Gross profit margins have been thin at 1.6%, with a six‑month gross profit of $1.4 million versus $0.1 million in the same period of FY 2024. The current ratio sits at 0.46, and the company carries an accumulated deficit of $134.8 million and negative working capital of $19 million. The partnership is therefore positioned to provide a critical revenue boost and a new market foothold that could help alleviate liquidity pressures and improve valuation.
Velocar brings a robust European footprint, operating under the name Tianjin MaShang Haoche Information Technology Ltd. in China. Its vehicle circulation and distribution networks cover major European markets, while its end‑market services enable seamless cross‑border logistics. By integrating these capabilities with Autozi’s digital platform, the alliance seeks to create a scalable, end‑to‑end supply‑chain solution that can capture a larger share of the growing automotive logistics market in Europe. The $500 million target represents a substantial expansion relative to Autozi’s current revenue base and signals a bold move into a high‑growth region.
Strategically, the cooperation is described as “M&A‑oriented,” suggesting that the parties may explore deeper integration or a potential acquisition in the future. While specific terms are not disclosed, the partnership could provide Autozi with a platform to acquire or partner with European logistics players, thereby accelerating its global footprint and diversifying its revenue streams. The deal also offers a potential path to improve cash flow and reduce the company’s high debt burden, addressing the liquidity and valuation challenges that have weighed on its market performance.
The announcement follows a period of significant stock decline—AZI shares had fallen 9.52% in the past week and 81.05% over six months—highlighting the urgency of the partnership. By entering a high‑potential European market and leveraging Velocar’s established network, Autozi aims to reverse its financial trajectory and restore investor confidence. The $500 million revenue target over three years represents a more than threefold increase over its current annual revenue, underscoring the ambitious nature of the collaboration and its potential to reshape Autozi’s business model.
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