Kandi Announces $237 Million in Financing from Development Zone
Kandi's joint venture with Geely said it secured $237 million in supply chain financing from the Rugao City National Economic and Technological Development Zone.
Kandi Technologies Group Inc. (Nasdaq: KNDI) stock fell 2.1 percent today after the automaker announced that its joint venture had secured supply chain financing worth RMB 1.6 billion ($237 million) from a local government in China.
The Rugao City National Economic and Technological Development Zone first provided the joint venture, Kandi Electric Vehicles Group Co., with RMB 7.3 million ($1.08 million) in financing in May 2017.
The joint venture had received RMB 1.28 billion ($190.2 million) in funding as of yesterday. The rest will be provided "according to the JV Company's capital requirements," the company said.
"The JV Company has garnered significant attention and support from the government. After receiving the manufacturing license, there has been an increase of support; I believe this positive relationship will continue on into the future," said Xiaoming Hu, Kandi's chairman and CEO.
Kandi produces electric cars through its joint venture with Geely, one of China's largest automakers. Kandi Electric Vehicles has also announced a deal with a Geely subsidiary, Hangzhou Youxing, to provide its ride-sharing service Cao Cao with 20,000 electric vehicles over the next three years.
Last month, the Chinese government gave the joint venture the green light to produce 50,000 vehicles per year in Jiangsu province. This project had been suspended since May 2017 after the government tightened regulations. Rugao City is located on the Yangtze River Delta in Jiangsu province.
Kandi stock, which up 53 percent year-to-date, closed at $5.45 on Monday.