JINHUA, China, Dec. 24, 2013 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the "Company" or "Kandi") (Nasdaq:KNDI), announced today that its subsidiary Zhejiang Kandi Electric Vehicles Co., Ltd. (the "JV Company") signed the Ownership Transfer Agreement (the "Agreement") with Shanghai Maple Guorun Automobile Co., Ltd. ("Shanghai Maple"), a 99% owned subsidiary of Geely Automobile Holdings Ltd. ("Geely") on December 23 rd, 2013.
Pursuant to the terms of the Agreement, the JV Company is required to pay RMB 640,651,000 (approximately USD104,147,186) to acquire 100% ownership of Kandi Electric Vehicles (Shanghai) Co., Ltd. ("Kandi Shanghai") from Shanghai Maple. The JV Company will make the payment of RMB 400,000,000 (approximately USD 65,025,800) within 90 days upon signing the Agreement. The remaining payment will be delivered within 360 days after signing. Both parties agreed to try to complete the transfer process of Kandi Shanghai's entire ownership with local State Administration of Industry and Commerce before December 31 st, 2013.
Upon the completion of this transfer, Kandi Shanghai will become 100% owned subsidiary of the JV Company. Through its 50% ownership of the JV Company, Kandi will indirectly own 50% of Kandi Shanghai.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 for China in the near future. 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."