Kandi Scores $70.5 Million Deal With Walmart Supplier
Kandi's subsidiary will sell 300,000 electric scooters and 500,000 electric self-balancing scooters to DGL, a Walmart supplier.
Kandi Technologies Group Inc. (Nasdaq: KNDI) announced on Monday that its subsidiary has scored a deal to supply 300,000 e-scooters and 500,000 self-balancing e-scooters to DGL Group Ltd.
The deal for Zhejiang Kandi Vehicles Co. Ltd. is expected to be worth around $70.5 million and deliver a year from the signing date of the agreement, according to Kandi's statement on Monday.
DGL, the U.S.-based electronics manufacturer has partnerships with some of the largest retailers in the country. Since 2017, the company has been Walmart's largest supplier of electric self-balancing scooters, Kandi said.
"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 the statement.
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 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 1 percent lower on Monday, at $5.07 per share.