JINHUA, CHINA--(Marketwire - Jul 23, 2012) - Kandi Technology Corp. (the 'Company' or 'Kandi') (NASDAQ: KNDI), a leading Chinese manufacturer and developer of pure electric vehicles (EVs) and all-terrain vehicles (ATVs), today announced that the Company's wholly owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. ("Kandi Vehicles"), has signed a framework agreement with the government of Weifang Binhai Economic Development Zone ("Weifang Development Zone") in Wei Fang City of Shandong Province, under which Kandi Vehicles intends to invest and establish a project company in the development zone that will have a capacity annually to produce key components and parts for 100,000 EVs (the "Project").
Shandong is the first province in China that commercialized EV and has the biggest EV market in China. Weifang Development Zone (http://www.wfbinhai.gov.cn) is a national level economic and technology development zone and a key automotive industry base approved by the National Development and Reform Commission. It is also the National Priority Area in Shandong Peninsula Blue Economic Zone and the Yellow River Delta Efficient Eco-economic Zone.
In order to gain market position for Kandi EVs in Shandong province and receive the support from the local government, upon the invitation of Weifang Development Zone, Kandi Vehicles has discussed and executed the framework agreement with Weifang Development Zone on July 13, 2012 after extensive discussion and negotiation between the parties. The main provisions of the framework agreement are as follows:
1. The Project is invested by Kandi Vehicles. The annual revenue of the Project is expected to be approximately RMB3 billion when it reaches its full capacity.
2. Weifang Development Zone will nominate the Project as one of the key projects to be supported in Shandong Province and will try to receive support for this Project under the provincial government's preferential policies.
3. Weifang Development Zone agrees to provide Kandi Vehicles 500 mu (approximately 333,300 square meters) construction land for project use at a favorable price.
4. Upon the completion of the Project, Weifang Development Zone will work actively to gain national, provincial and municipal supportive policies for the EV industry, and fully promote the use and acceptance of Kandi EVs in Shandong province. In principle, the government will have a special supportive policy for no less than 20,000 EVs every year.
5. The Project will receive local government tax incentive and preferential treatment.
6. The entire project is expected to be completed within 2 years as soon as Kandi Vehicles obtains the land-use right.
Mr. Xiaoming Hu, Chairman and the Chief Executive Officer of Kandi, commented, "Shandong provincial government's strong support is essential for Kandi to enter into the EV market in Shandong province. The practice is that local governments have various supporting policies for local companies, therefore the cooperation with Weifang Development Zone to establish a local project company will provide a firm foundation for Kandi to become the leader in the EV market in China. In the meantime, Kandi has full confidence that it will achieve success in the EV market in Shandong."
About Kandi Technologies, Corp.
Kandi Technologies, Corp. (KNDI) is a manufacturer and exporter of a variety of vehicles in China, making it a world leader in the production of popular off-road vehicles (ORVs). It also ranks among the leading manufacturers in China of all-terrain vehicles (ATVs), specialized utility vehicles (UTVs), and a recently introduced second-generation high mileage, two-seat three-wheeled motorcycle. Another major company focus has been on the manufacture and sale of the COCO electric vehicle (EV), a highly economical, beautifully designed, all-electric super mini-car for neighborhood driving and commuting. The convertible and hardtop models of the COCO EV are available in the United States and other countries, while the Chinese government has approved the sale of Kandi EVs in China since 2010. More information can be viewed at its corporate website is http://www.chinakandi.com.
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