By late afternoon, shares had added 4.2% to $11.54.
Kandi's wholly-owned subsidiary Zhejiang Kandi Vehicles has signed a one-year supply contract with China's largest producer of rechargeable lithium-ion batteries. The contract will begin May 2014 with a minimum of 25,000 cases of batteries delivered. The contract is valued at around $58.5 million.
"Chinese Premier Keqiang Li recently reiterated plans to boost clean energy by promoting the industrialization of electric vehicles," the company notes in a statement. "Management believes that Premier Li's remarks foreshadow an acceleration in the industrialization of pure electric vehicles in China."
TheStreet Ratings team rates KANDI TECHNOLOGIES GROUP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate KANDI TECHNOLOGIES GROUP (KNDI) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."