JINHUA, China, May 16, 2011 /PRNewswire/ -- Kandi Technologies, Corp. (Nasdaq: KNDI), a leading Chinese supplier of off-road vehicles and developer of pure electric vehicles (EV), said it published a letter to its shareholders today to provide a detailed explanation of a reporting error that does not affect reported revenues but does affect unit volumes of products reported in the Company's 2010 Annual Report as filed on Form 10-K. In order to provide continued transparency to shareholders and other interested investors, the Company has filed a copy of the letter with the Securities and Exchange Commission (SEC), which is available at their website: http://sec.gov/Archives/edgar/data/1316517/000114420411029320/0001144204-11-029320-index.htm.
Kandi's letter to shareholders addresses the error in its filing, specifically within a table outlining the unit and dollar revenue breakdown by product for 2010 and 2009. As the Company previously stated, the dollar amounts for revenues shown in that table were accurate; however the category unit numbers contained discrepancies as a result of two causes. The first was a recategorization of certain models in the 2009 unit volumes to render those numbers comparable to the 2010 unit volumes. The second cause was related to the translation from Chinese accounting standards to U.S. GAAP. Details surrounding these adjustments are included in the letter to shareholders and will be included in the subsequent amendment to the Company's annual report on Form 10-K.
"We have taken time and great care to determine the source of this error and provide corrected unit figures to our investors," said Xiaoming Hu, CEO and Chairman of the Board of Kandi Technologies. "However, we wanted to be sure that the information we provided was absolutely accurate. We take our responsibility in this regard very seriously, and hope our prompt attention to this matter shows the high regard we have for the accuracy and transparency of our financial information."
About Kandi Technologies, Corp.Kandi Technologies, Corp. (Nasdaq: KNDI) is a manufacturer and exporter of a variety of vehicles in China, making it a world leader in the production of popular off-road vehicles (ORVs). It also ranks among the leading manufacturers in China of all-terrain vehicles (ATVs), specialized utility vehicles (UTVs), and a recently introduced second-generation high mileage, two-seat three-wheeled motorcycle. Another major company focus has been on the manufacture and sale of the COCO electric vehicle (EV), a highly economical, beautifully designed, all-electric super mini-car for neighborhood driving and commuting. The convertible and hardtop models of the COCO EV are available in the United States and other countries, while the Chinese government has approved the sale of Kandi EVs in China since 2010. The Company's products can be viewed at http://www.kandivehicle.com and its corporate website is http://www.chinakandi.com. Information Regarding Forward-Looking Statements The foregoing press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These include statements about the Company's expectations, beliefs, intentions or strategies for the future, which the Company indicates by words or phrases such as "anticipate," "expect," "intend," "plan," "will," "we believe," "our company believes," "management believes" and similar language. These forward-looking statements are based on the Company's current expectations and are subject to certain risks, uncertainties and assumptions. The Company's actual results may differ materially from results anticipated in these forward-looking statements. The Company bases its forward-looking statements on information currently available, and it assumes no obligation to update them. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements.