Kandi Completes Transfer of 22% Equity in JV to Geely

The deal, arranged in March, is worth $72.4 million. Kandi said it hopes to boost the operations of its joint venture with Geely through the equity shift.
Anthony RussoSep 30,2019,19:00

Kandi Technologies Group Inc. (Nasdaq: KNDI) announced on Monday that, in an effort to accelerate the growth of its joint venture company, Kandi Electric Vehicles Group Co., Ltd., (JV company completed an equity transfer with one of its biggest partners.

Kandi said its subsidiary, Zhejiang Electric Vehicles Group Co., (Kandi Vehicles) completed the transfer of 21.74% of its stake in the JV company to Chinese based automotive company, Geely Technologies Co., Ltd. on Sunday.

Since the original agreement in March, the two sides renegotiated the payment method and transfer agreement. Under the new agreement $30.9 million was transferred from Geely to Kandi Vehicles in cash, while the other $41.6 million of commercial acceptance notes, expires on Jan. 20, 2020, Kandi said.

The full completion of the agreement would give Greely 78% of the JV company, and Kandi Vehicles the remaining 22% and would amount to $72.4 million, according to Kandi’s statement.

The agreement was designated to help the JV company succeed in branding, manufacturing, sales & marketing network and after sales service, Kandi said.

The partnership between Kandi and Geely, dates back 2013, when they agreed upon a 50-50 split to develop, manufacture and sell EV products and related auto parts. (CW source linked below)

In August Kandi reported its second quarter results, which showed revenue reached $24.1 million, up 48% year-over-year. Net loss was $7.3 million, or 14 cents per share, in contrast to a net income of $1.4 million, or 3 cents per share a year ago.

The Chinese EV market is expected to receive compound annual growth rate of over 33%  in between 2019 and 2024, according to a market research report by Mordor Intelligence. (CW source linked below)

Kand’s stock traded 2 percent lower, at $4.65 per share, while Geely traded up 2 percent, 1.68 per share on Monday morning.

The partnership between Kandi and Geely, dates back 2013, when they agreed upon a 50-50 split to develop, manufacture and sell EV products and related auto parts. (CW source linked below)

In August Kandi reported its second quarter results, which showed revenue reached $24.1 million, up 48% year-over-year. Net loss was $7.3 million, or 14 cents per share, in contrast to a net income of $1.4 million, or 3 cents per share a year ago.

The Chinese EV market is expected to receive compound annual growth rate of over 33%  in between 2019 and 2024, according to a market research report by Mordor Intelligence. (CW source linked below)

Screen Shot 2019-09-30 at 11.31.22 AM.png

Kand’s stock traded 1 percent lower, at $4.66 per share, while Geely traded up 2 percent, at $1.67 per share on Monday afternoon.



Sources: https://www.capitalwatch.com/article-3639-1.html

                https://www.capitalwatch.com/article-4199-1.html

               https://seekingalpha.com/pr/17647421-kandi-technologies-announces-completion-equity-transfer-jv-company


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