By GlobeNewswire, September 23, 2013, 09:05:00 AM EDT
JINHUA, China, Sept. 23, 2013 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc.(the 'Company' or 'Kandi') (Nasdaq:KNDI), today announced that Zhejiang Kandi Vehicles Co. Ltd. ("Kandi Vehicles"), a wholly owned subsidiary of Kandi has completed the acquisition of certain assets for electric vehicle ("EV") production pursuant to an Assets Purchase Agreement (the "Agreement"), announced on March 4th between Kandi Vehicles and Zhejiang New Energy Vehicle System Co., Ltd. ("New Energy").
The purpose of acquisition is to satisfy the cooperation between Kandi and Geely Automobile Holdings Ltd. ("Geely") to establish a joint venture company of Zhejiang Kandi Electric Vehicles Co., Ltd. (the "JV Company"). According to the JV Agreement, the registered capital for the JV Company is RMB1 billion (approximately $160 million) and each party will contribute 50% of the registered capital in cash and will each own 50% of the JV Company. The JV Company will acquire EV assets from Kandi and Geely in order to possess the necessary properties, assets and technologies to conduct its EV business.
Upon the completion of the acquisition, the titles and ownership of the acquired assets were transferred directly to Kandi Electric Vehicles (Changxing) Co., Ltd. ("Kandi Changxing"), a wholly owned subsidiary of Kandi Vehicles as the contribution of registered capital by Kandi Vehicles to Kandi Changxing. The JV Company is now in the process of acquiring the entire ownership of Kandi Changxing from Kandi Vehicles, which is expected to be completed before the end of coming October.
Mr. Xiaoming Hu, Chairman & CEO of Kandi comments, "The completion of the asset acquisition and contribution to Kandi Changxing is an important step to fulfill our obligations under the JV agreement. The next step is for the JV Company to complete the acquisition of all the equities of Kandi Changxing and Kandi Electric Vehicles (Shanghai) Co., Ltd., which was set up by Geely, so they will become the wholly owned subsidiaries of the JV Company. Upon the completion of that process, the JV Company will become the largest pure EV manufacturer in China and will be able to provide variety of EVs to meet the needs of the urban green mini-public transportation projects throughout China."
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (Nasdaq:KNDI), headquartered in Jinhua, Zhejiang Province, is engaged in the research and development, manufacturing and sales of various vehicles. Kandi has established itself as the one of the world's largest manufacturer of pure electric vehicles (EVs), Go-Kart vehicles, and tricycle and utility vehicles (UTVs), among others. More information can be viewed at its corporate website is http://www.kandivehicle.com.
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 securities laws, the Company does not assume a duty to update these forward-looking statements.
CONTACT: Kandi Technologies Group, Inc.China:
Source: Kandi Technologies, Corp.