JINHUA, China, Sept. 30, 2019 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), announced today that to accelerate the growth of Kandi Electric Vehicles Group Co., Ltd (the “JV Company”), Kandi’s wholly-owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. ("Kandi Vehicles") signed an Equity Transfer Agreement (the “Transfer Agreement”) in March of 2019 with Geely Technologies Group Co., Ltd. (“Geely”) to transfer certain equity interests. The equity transfer was for the JV Company to utilize Geely’s competitive strength and recognition in the automotive industry to unlock the JV Company’s potentials in branding, manufacturing capability, sales & marketing network, and after-sales service to enhance its competitiveness for greater success. Pursuant to the Transfer Agreement, the parties have agreed that Kandi Vehicles shall sell 21.47% of its equity interests in the JV Company to Geely for a total amount of RMB 516 million (approximately USD 72.4 million*(1)). Upon the completion of the transfer, Kandi Vehicles shall own 22% of the equity interests of the JV Company while Geely shall own 78%. The JV Company has completed the transfer of 21.74% of its equity interests in the JV Company to Geely on September 29, 2019.
Following the modifications of the JV Company’s business development plan in the past six months, the two parties have renegotiated and agreed the payment method of RMB 516 million for the equity transfer. As of September 29, Kandi Vehicles received cash payment of RMB 220 million (approximately USD 30.9 million), and the remaining RMB 296 million (approximately USD 41.6 million) in commercial acceptance notes, of which RMB 140 million’s note maturity date is January 20, 2020 and RMB 156 million’s note maturity date is March 29, 2020.*(2)
Additionally, the two parties also agreed on the payment installments of the accounts receivable and accounts payable between Kandi Vehicles and the JV Company. The JV Company has the total amount of RMB 311.5 million (approximately USD 43.7 million) in accounts payable to Kandi Vehicles which will be paid in three installments. The first payment of RMB 150 million (approximately USD 21.1 million) was received on September 10, 2019; the second payment of RMB 80 million (approximately USD 11.2 million) is expected to be received by December 10, 2019, and the remaining RMB 81.5 million (approximately USD 11.4 million) is expected to be received after the JV Company receives its 2017/2018 national subsidy payment.
*(1) Note: All of the currency conversions from RMB to USD referred to in this press release are based on the exchange rate of 1RMB = 0.140344USD, published by www.xe.com on the date before the release of this press release.
*(2) Note: A commercial acceptance note is a promised future payment, or time draft, which specifies the amount of the funds, the date, and the person to which the payment is due.
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. ("Kandi Vehicles") and its subsidiaries, SC Autosports, LLC, the wholly-owned subsidiary of Kandi in the United States and Kandi Electric Vehicles Group Co., Ltd. (the “JV Company”). Kandi Vehicles has established itself as one of China's leading manufacturers of pure electric vehicle parts and off-road vehicles.
In 2013, Kandi Vehicles and Geely Group, China's leading automaker, jointly invested in the establishment of the JV Company in order to develop, manufacture and sell pure electric vehicle ("EV") products. As of September 30, 2019, Geely Group (including its affiliate) holds 78%, and Kandi Vehicles holds 22% in the JV Company. The JV Company has established itself as one of the driving forces in the development and the manufacturing of pure EV products in China.
More information about KNDI is available on the Company's corporate website at http://www.kandivehicle.com. The Company routinely posts important information on its website.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.
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Ms. Kewa Luo
Kandi Technologies Group, Inc.