JINHUA, China, Jan. 23, 2014 (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") has completed the ownership transfer process of Kandi Electric Vehicles (Shanghai) Co., Ltd. ("Kandi Shanghai") from Shanghai Maple Guorun Automobile Co., Ltd. ("Shanghai Maple") to the JV Company per requirement of local State Administration of Industry and Commerce. The Ownership Transfer Agreement (the "Transfer Agreement") was previously signed on December 23 rd, 2013 between the JV Company and Shanghai Maple pursuant to terms of the Joint Venture Agreement (the "JV Agreement") of establishing the JV Company between Zhejiang Kandi Vehicles Co., Ltd., a wholly owned subsidiary of Kandi and Shanghai Maple, a 99% owned subsidiary of Geely Automobile Holdings Ltd. ("Geely").
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Upon the completion of this transfer, the JV Company owns 100% of Kandi Shanghai and Kandi now becomes a 50% owner of Kandi Shanghai through its 50% ownership of the JV Company. Kandi Shanghai has started the production of the Kandi Brand SMA7001BEV model.Mr. Hu Xiaoming, Chairman of Kandi and General Manager of the JV Company, commented, "this ownership transfer of Kandi Shanghai completes all the cash and asset infusion from both joint venture parties under the JV Agreement and it better consolidates the resources and expertise of Kandi and Geely in R&D, production, sales and marketing for electric vehicles ("EVs"). Furthermore, Kandi Shanghai will provide the solid platform for Kandi to begin exploring the public EV sharing project in Shanghai. With the increase of environmental consciousness among Chinese consumers as well as government, and urgent demand for urban green public transportation systems, the EV sector will certainly become a major driving force for the green economy in China.