Kandi Technologies completes equity transfer of JV company
Kandi Technologies Group announced that to accelerate the growth of Kandi Electric Vehicles Group, Kandi's wholly-owned subsidiary, Zhejiang Kandi Vehicles signed an Equity Transfer Agreement in March of 2019 with Geely Technologies Group to transfer certain equity interests. The equity transfer was for the JV Company to utilize Geely's competitive strength and recognition in the automotive industry to unlock the JV Company's potentials in branding, manufacturing capability, sales & marketing network, and after-sales service to enhance its competitiveness for greater success. Pursuant to the Transfer Agreement, the parties have agreed that Kandi Vehicles shall sell 21.47% of its equity interests in the JV Company to Geely for a total amount of RMB516M. Upon the completion of the transfer, Kandi Vehicles shall own 22% of the equity interests of the JV Company while Geely shall own 78%. The JV Company has completed the transfer of 21.74% of its equity interests in the JV Company to Geely on September 29, 2019. Following the modifications of the JV Company's business development plan in the past six months, the two parties have renegotiated and agreed the payment method of RMB516M for the equity transfer. As of September 29, Kandi Vehicles received cash payment of RMB220M and the remaining RMB296M in commercial acceptance notes, of which RMB140M's note maturity date is January 20, 2020 and RMB156M's note maturity date is March 29, 2020. Additionally, the two parties also agreed on the payment installments of the accounts receivable and accounts payable between Kandi Vehicles and the JV Company. The JV Company has the total amount of RMB311.5M in accounts payable to Kandi Vehicles which will be paid in three installments. The first payment of RMB150M was received on September 10, 2019; the second payment of RMB80M is expected to be received by December 10, 2019, and the remaining RMB81.5M is expected to be received after the JV Company receives its 2017/2018 national subsidy payment.