Quantum Solutions strengthens its board to expand electric vehicle production

HONG KONG,May 30,2022 -- Quantum Solutions (Quantum),which is listed on the Tokyo Stock Exchange,held its 23rd annual general shareholders meeting on May 26 and announced that it has appointed new directors to strengthened its board as it shifts focus to providing affordable mobility solutions necessary for the global transition to a net carbon-zero society.

At Thursday's meeting Quantum appointed Neil Nastanski,who has extensive knowledge of global markets and financial markets,including Asia,as a non-executive director with the aim of establishing new business alliances and raising additional funds from investors.

At the same time,Quantum appointed Kazuo Ishikawa as an audit and supervisory committee member. Ishikawa has abundant experience working previously at the Ministry of International Trade and Industry (currently the Ministry of Economy,Trade and Industry),has a wide range of knowledge about business and administration and has even served as a working-group committee member at Japan's Cabinet Office after retiring.

Prior to this,Quantum appointed Simon Zhang as its new chief executive to manage the company's overseas platform in April. Simon Zhang is a 19-year business veteran with extensive experience in strategic planning,M&A and corporate restructuring,equity listings and securing corporate financing for a broad range of business activities across the real estate,technology and new energy sectors. Quantum will target market segments that are expected to grow in the future with its management team,which has the knowledge necessary to make optimal decisions necessary for future growth.

Strengthening the board of directors and appointing a new manager of the company's operations overseas aims to build a global platform that can take advantage or the company's strong management and global M&A to provide users with many EV models,including custom-made EV technology,as we take an important step toward shifting our operations to focus on providing environmentally friendly mobility solutions. While many automakers are focusing on producing high-priced EVs,Quantum aims to meet the needs of consumers for high-performance,affordable and environmentally friendly passenger cars.

As a first step toward achieving this,in January this year Quantum acquired the rights to produce and sell in some regions the FOMM ONE,one of the world's smallest four-seater EV models,from its joint-venture partner FOMM Co.,Ltd. Quantum has started OEM production of the affordable EV car FOMM ONE and plans to start shipping from July this year. FOMM ONE utilizes patented technology invented by engineers who were involved in EV development at Japan's Araco Co.,Ltd. (currently Toyota Auto Body Co.,Ltd.) and later left to start their own company. FOMM ONE has already been approved for sale in Japan and Thailand

Simon Zhang said,"We look forward to getting to work on producing the FOMM ONE and expect to deliver the first batch of cars sometime this summer to meet growing demand for reliable and affordable EVs. We are also interested in working with new original equipment manufacturers (OEMs) or strategic partners in order to broaden our EV technology and product portfolio."

One recent result of Quantum's efforts to secure new business partners is an agreement reached in March between Quantum Automotive Ltd.,a wholly-owned subsidiary of Quantum,and Chinese EV maker Jiangsu Duke Electric Motor Co.,Ltd. (Duke) to use Duke's technology to manufacture EVs for Asia and Latin America.

Quantum sees huge potential in developing new partnerships and attracting new investors because of an expected rapid increase in demand for EVs across major markets. For example,the number of new battery-powered EVs registered in Japan is expected to reach 2 million units in 2030,according to a commissioned industry report,which would represent a CAGR of 69.2% from 2018. Meanwhile,in China alone,EV sales are expected to reach 4.2 million units in 2025,which represents a CAGR of 33% from 2020.

In addition to seeking out new partners and OEMs,the company also expressed interest in expanding its EV business globally after the end of its 23rd annual general shareholders meeting. The FOMM ONE EV model will initially be sold both in Japan and Thailand to consumers and to organizations that operate fleets of cars used for regular tasks such as security patrols and parcel delivery,offering customers an affordable way to switch over to EVs from internal combustion engine cars and reduce dependence on fossil fuels.

About Quantum Solutions Limited (2338.T)

Quantum Solutions Co.,Ltd. (TSE Standard Section Code No. 2338) is a company headquartered in Kudankita,Chiyoda-ku,Tokyo,with a capital of 2.7 billion yen,mainly engaged in content development and contract development of distribution software.

About FOMM Corporation

FOMM is an R&D and design-oriented mobility company specializing in planning and developing compact mobility using innovative designs and technologies. FOMM has been designated as the OEM for the FOMM ONE EV. The company is based in Kanagawa Prefecture and was established in 2013 by Hideo Tsurumaki,who is a veteran engineer from Suzuki Motor Corp. and Araco Co.,Ltd.