Kandi Technologies Group, Inc., Jinhua, China, (NASDAQ GS: KNDI) announced today that on October 30, 2020 it signed a cooperation agreement each with CITIC Securities, Grandall Law Firm (Hangzhou) and Pan-China Certified Public Accountants LLP to initiate the IPO process to list its wholly owned subsidiary, Zhejiang Kandi Smart Battery Swap Technology Co, Ltd on the Shanghai Stock Exchange’s Sci-Tech Innovation Board (“STAR”) market. CITIC Securities will act as the IPO sponsor and lead underwriter, Grandall Law Firm will act as the legal advisor, and Pan-China Certified Public Accountants LLP will act as the auditor for the IPO.
Mr. Xiaoming Hu, Chairman of the Board of Directors and Chief Executive Officer of Kandi commented, “We are excited to enter a cooperation agreement with these world class advisors to lead this IPO. After more than a month of preliminary due diligence on our Smart Battery Swap subsidiary, the advisors are confident in the proposed spin-off listing on the STAR market.”
Hu continued, “We are confident that our battery swap business can grow rapidly, due to our years of experience in smart battery exchange technology further supported by China’s national policy to promote ‘vehicle-battery separation’ swapping for electric vehicles. Listing on the STAR market will enable us to raise the capital needed at an attractive cost to grow this business rapidly. As well, the STAR listing will further unlock the subsidiary’s value as a public company and enable us to more quickly realize value for Kandi shareholders.”
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. (“Kandi Vehicles”) and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States and Fengsheng Automobile Technology Group Co., Ltd (formerly known as Kandi Electric Vehicles Group Co., Ltd., the “Affiliate Company”). Kandi Vehicles has established itself as one of China’s leading manufacturers of pure electric vehicle parts and off-road vehicles.
In 2013, Kandi Vehicles and Geely Group, China’s leading automaker, jointly invested in the establishment of the Affiliate Company in order to develop, manufacture and sell pure electric vehicle (“EV”) products. Geely Group (including its affiliate) and Kandi Vehicles currently holds 78% and 22% of the equity interests in the Affiliate Company, respectively. The Affiliate Company has established itself as one of the driving forces in the development and the manufacturing of pure EV products in China.
