Kandi Technologies Group (KNDI) Reports Initial $4M Payment from Shanxi Coal

October 26, 2016 8:58 AM EDT

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Kandi Technologies Group, Inc. (NASDAQ: KNDI) today announced that Kandi Electric Vehicles Group Co., Ltd. (the “JV Company,” a 50/50 joint venture between Kandi and Geely Automobile Holdings Ltd.) has received an initial payment of RMB 27,408,000 (or approximately USD $4 million) from Shanxi Coal Asset Management Group (“Shanxi Coal”), as provided for under their previously-announced strategic cooperation agreement to produce and sell more than 50,000 electric vehicles (“EVs”) during a five-year period.

Mr. Hu Xiaoming, Chairman and Chief Executive Officer of Kandi, commented, “Receiving the initial multi-million dollar payment from Shanxi Coal is a strong indicator that both parties have made substantial progress under our strategic cooperation agreement, and we look forward to continued successful cooperation between Kandi and Shanxi Coal in the future.”

“Although the national government will begin reducing the amount of renewable energy subsidies to all EV manufacturers in 2017, the subsidy program itself will continue through 2020. Under the Government’s current subsidy policy, the EVs produced and sold by the JV Company meet national renewable energy subsidy requirements and are eligible to receive subsidy payments. Kandi is currently developing EV market growth strategies that do not rely solely on subsidy payments and is identifying key areas of focus in which to improve Kandi’s earnings capabilities,” Mr. Hu concluded.

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