JINHUA, China, August 13th, 2012--Kandi Technologies, 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 Cooperative Framework Agreement for the Promotion of Self-driving Electric Vehicle Rental for Public Transportation in Hangzhou Project ("the Project") with Zhejiang Guoxin Vehicle Leasing Company ("Guoxin Leasing") at the Energy Saving and New Energy Vehicle Demonstration and Promotion Forum of China International Green Vehicle Industry Expo (Hangzhou) ("Expo") held by EV Key Project Management Office of Ministry of Science and Technology of China on August 10th, 2012.
Xiaoming Hu, Kandi CEO and Xiaoping Zheng, CEO of Guoxin signing at the ceremony
The strong support and effort of Zhejiang province and Hangzhou city governments to promote electric vehicles development in scale and establish Hangzhou as a role model city for electric vehicles in China provided this great opportunity to the parties to reach such an agreement.
The main provisions of the framework agreement are as follows:
1. Parties will cooperate according to The Feasibility Study of a Public Transportation Project of 100,000 Self driving Rental EVs in Five Years in Hangzhou City by Development Research Center of the State Council of China, the China Society Of Automotive Engineers ("SAE") and Zhejiang University. Guoxin Leasing indicates that it intends to purchase Kandi brand EVs for such project. The parties have not established definite terms including price, quantities and time for delivery and these will be established by separate purchase agreements.
2. Parties intend to launch the preparation work for the Project immediately after signing the cooperative framework agreement. Guoxin Leasing will first purchase 200 EVs from Kandi to launch the project, and the final terms and time for delivery have yet to be determined.
3. Kandi will execute the production schedule based upon Guoxin’s order and the requirements of the Project’s development and will deliver the products in installments until the Project is completed.
4. At the beginning stage of the Project, Kandi will have its technicians staying in Gouxin Leasing to provide timely technical support, repair and maintenance services.
Both Parties agree that they will value each other as a critical business partner and strike to achieve mutual development and maximum economic benefits through the cooperation on EV business.
This cooperative framework agreement is another significant step after Kandi signed Cooperative Letter of Intent with China Aviation Lithium Battery Co., Ltd. to Promote 20,000 Pure Electric Vehicles in Hangzhou. If this project can be executed successfully, it will establish a strong foundation to advance next five yeas development for Kandi.