JINHUA, China, Nov. 4, 2013 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the "Company" or "Kandi") (Nasdaq:KNDI), announced today that its wholly owned subsidiary Zhejiang Kandi Vehicles Co. Ltd. ("Kandi Vehicles") completed the transfer of its entire ownership of Kandi Electric Vehicles (Changxing) Co., Ltd. ("Kandi Changxing") to Zhejiang Kandi Electric Vehicles Co., Ltd. (the "JV Company") with local State Administration of Industry and Commerce on November 1 st, 2013. The transfer is pursuant to the Joint Venture Agreement of the Establishment of the JV Company between Kandi Vehicles and Shanghai Maple Guorun Automobile Co., Ltd., a 99% owned subsidiary of Geely Automobile Holdings Ltd. ("Geely") signed on March 22 nd, 2013.
Pursuant to the terms of the JV Agreement, the JV Company has paid RMB 400,000,000 (approximately USD 65,025,800) before September 30 th, 2013 and acquired 100% ownership of Kandi Changxing from Kandi Vehicles. Upon the completion of this transfer, Kandi becomes a 50% owner of Kandi Changxing through Kandi Vehicles and its 50% ownership of the JV Company.
Mr. Xiaoming Hu, Chairman of Kandi and General Manager of the JV Company commented, "this ownership transfer better consolidates the resources and expertise of Kandi and Geely in R&D, production, sales and marketing for electric vehicles ("EVs"), so we will be able to develop more affordable pure electric vehicles for residents in China to buy and drive, provide efficient services to our customers, and promote the use EVs in China. With the increase of consumer environmental consciousness and urgent demand for urban green public transportation systems, the EV sector will certainly become a main driving force for the green economy in the near future in China. We will work our best to build a strong and reliable urban green transportation system and make Kandi the leader in the EV industry in China."