Zhejiang Kandi Vehicles Co., Ltd., the subsidiary of Jinhua-based Kandi Technologies Group, Inc., (Nasdaq: KNDI) announced a purchase agreement with DGL Group Ltd. regarding a batch order of 300,000 electric scooters and 500,000 electric self-balancing scooters.
The deal is expected to be worth around $70.5 million and the purchased products will process and deliver a year from the signing date of the agreement, according to Kandi Technologies statement on Monday.
DGL, the United States based electronics company, developed partnerships with large retail stores such as Walmart, and since 2017, DGL has been Walmart’s largest supplier and partner of electric self-balancing scooters under intelligent transportation, according to Kandi’s statement.
“Kandi is currently in the process of upgrading its pure electric vehicle products to comply with US regulations. The upgraded products will be launched in the U.S. market in the near future,” Xiaoming Hu, the chairman of Kandi said in a statement on Monday.
He added “Collaborating with DGL Group to develop intelligent transportation products together allows us utilize our best resources and expertise in this area. Beyond the electric scooters and electric self-balancing scooters we are working on, the two parties are in discussion about further cooperation on other pure electric transportation products.”
Last month Kandi reported its second quarter earnings, which the company said revenue in the three months through June reached $24.1 million, up 48 percent year-over-year. Net loss was $7.3 million, or 14 cents per share, in contrast to an income of $1.4 million, or 3 cents per share, a year ago.
Kandi’s stock closed trading down 1 percent, at $5.07 per share on Monday afternoon.