JINHUA, China, Nov. 5, 2012 /PRNewswire/ -- Kandi Technologies, Corp. (the 'Company' or 'Kandi') (NASDAQ: KNDI), a leading Chinese manufacturer and developer of pure electric vehicles (EVs) and all-terrain vehicles (ATVs), today announced that the Company's wholly owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd ('Kandi Vehicles') has recently negotiated, conditional upon approval by the board of directors of the Company, a framework agreement (the 'Framework Agreement') with Wanning city government of Hainan Province, under which Kandi intends to expand into Hainan's pure EV market by establishing and investing in a manufacturing plant that will have the capacity to produce key components and parts for up to 100,000 EVs annually.
Often referred to as "the Hawaii of the Far East," Hainan Province with a population of 7.86 million, is China's largest special economic zone and the only tropical beach destination in China. On January 4, 2010, the State Council designated Hainan as an international tourism island. As a national strategic deployment, China has announced plans to build Hainan Province, by year 2020, into a world-class travel and leisure destination with a strong focus on eco-friendly tourism as well as various Green technology industries. The government plans bode well for the future growth of the manufacture and use of pure electric vehicles in Hainan.
Having conducted months of thorough due diligence and rounds of negotiation since Kandi Technologies was invited to Hainan by both provincial and city governments, the Company has reached this Framework Agreement with Wanning City. Some of the main contents of the Agreement include the following:
A. The Hainan manufacturing facility will be built by Kandi. When fully completed and reaching its ultimate production capacity, the facility is expected to generate up to RMB 3 billion of annual revenue;B. The Wanning City will list this Kandi project as a top priority and apply for various preferential policy supports from the province government in Hainan; C. The Wanning City will provide Kandi up to 500 mu (or about 82 acres) of land at a favorable price to build the manufacturing plant;