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."