Kandi Stock Jumps 4% on Collaboration With State-Owned China Resources for Ride-Hailing
Shares in the Chinese electric vehicle maker gained 4 percent in early trading after Kandi announced a five-year plan to help provide 300,000 cars for ride-hailing.
The stock of Kandi Technologies Group Inc. (Nasdaq: KNDI) was up 4 percent in early trading Monday, at $8.02 per American depositary share, after it announced arranging a cooperation agreement with a Fortune 500 company to operate government-accredited shared vehicles.
Kandi said in a statement today that its joint venture with Geely Group, Kandi Electric Vehicles Co. Ltd., has organized the Accredited Vehicle Alliance to provide 300,000 cars for ride-hailing over the next five years. With more than 10 vehicle service providers in the alliance, Kandi will be the primary pure electric car supplier in the project. China Resources (Zhejiang) Vehicle and Ship Natural Gas Co. Ltd. will be in charge of investment and the vehicle battery exchange business in the project, according to the report.
"We are thrilled to have the opportunity to collaborate with such a respectable enterprise—China Resources Zhejiang," Kandi's chairman, Xiaoming Hu, said. "Given their rich reserved resources and distribution networks, China Resources Zhejiang is well equipped to take advantage of such a favorable operating environment to provide operational efficiency of battery exchange services for 300,000 government accredited online ride-hailing vehicles within five years."
China Resources Zhejiang (HKEX: 1193) covers 25 provinces and municipalities in China and is the country's largest city gas distribution business operator. It is a subsidiary of the state-owned China Resources Group, which ranked 86th on the Fortune 500 in 2017. The Group is based in Hong Kong.