Kandi Technologies Subsidiary Completes EV Assets Acquisition

(RTTNews) - Zhejiang Kandi Vehicles Co. Ltd., a wholly-owned subsidiary of Kandi Technologies Group, Inc. (KNDI) Monday said, pursuant to an agreement between Kandi Vehicles and Zhejiang New Energy Vehicle System Co., Ltd., it has completed the acquisition of certain assets for electric vehicle production.

The acquisition satisfies the cooperation between Kandi and Geely Automobile Holdings Ltd. to establish a joint venture company of Zhejiang Kandi Electric Vehicles Co., Ltd.

Under the terms of the JV Agreement, the registered capital for the JV Company is 1 billion Chinese yuan, or approximately $160 million. Each party own 50 percent of the JV Company by contributing capital of 500 million each.

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 Co., Ltd.

"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, said Xiaoming Hu, Chairman & CEO of Kandi.