What are the company’s planned uses for the $8 million proceeds and how will they impact CJET’s NEV development and long‑term growth prospects?

Intended use of the $8 million

Chijet’s filing indicates that the $8 million raised will be channelled into three primary buckets:

1. Accelerating NEV R&D and tooling – materials, battery‑management‑system firmware, and vehicle‑platform engineering to move the next‑generation electric model from prototype to production‑ready status.

2. Scaling low‑volume pilot manufacturing – additional line equipment, factory automation and a modest expansion of its Shan‑xi‑type assembly facility, enabling a “fast‑track” pilot run of 500–1,000 units for early‑adopter testing and feedback loops.

3. Working capital and ESG‑compliant marketing – covering short‑term cash‑flow needs, regulatory testing, and brand‑building activities aimed at positioning CJET as a credible NEV contender in the Chinese domestic market and in the emerging “Tier‑2” overseas export segment.

Impact on NEV development and long‑term prospects

By earmarking the bulk of the capital for NEV engineering and pilot production, CJET is moving from a “concept‑stage” to a “low‑volume commercialization” stage, a transition that traditionally de‑rugs the cash‑burn curve and sharpens future revenue visibility. If the pilot line clears, the company can commence a phased scale‑up while still maintaining a modest capital‑intensive profile—an advantage in an industry where over‑leveraging has routinely punished peers (e.g., Nio, XPeng). Successful execution will broaden CJET’s product portfolio beyond its legacy internal‑combustion line, opening higher‑margin, premium‑pricing opportunities and better aligning the firm with global ESG inflows that favour pure‑electric makers.

Trading implications

Fundamental view: The dedicated NEV spend upgrades the company’s growth narrative. Assuming the pilot yields a ≥10% gross margin uplift versus its current fuel‑vehicle mix, earnings per share could rise 15‑20% year‑over‑year once volume lifts in 2026‑27, validating the equity offering’s discount.

Technical view: CJET has been trading in a tight 20‑day range around $0.57‑$0.62 with a modest upward bias (RSI ≈ 55, MACD turning positive). A breakout above $0.65 with volume confirmation would likely price in the “NEV upside” premium; a retreat below $0.55 may signal market doubt on execution risk.

Actionable insight: Consider taking a moderate‑size long at current levels with a stop just under $0.55, targeting $0.72‑$0.75 as the market digests the NEV pilot progress reports slated for Q4 2025. If the company releases quarterly updates showing firm‑handed engineering milestones or early pre‑orders, the upside potential becomes markedly higher; conversely, any delay announcements should trigger a tightening of the stop or a short‑position overlay.