Benzinga | Mar 15, 2021 08:47AM EDT

Kandi Technologies Exits Position In Fengsheng Automotive Technologies Group Co.; Co.'s Zhejiang Kandi Vehicles Subsidiary Completed Equity Transfer Agreement With Geely In Which Equity Interest Was Exchanged For $47.3M In Cash

Jinhua, China, March 15, 2021 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (the "Company" or "Kandi") announced today that it exited its position in Fengsheng Automotive Technologies Group Co., Ltd (the "Affiliate Company" or "Fengsheng").

To formalize the exit, Kandi's wholly owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. ("Kandi Vehicles") completed an Equity Transfer Agreement (the "Transfer Agreement") with Geely, in which Kandi's 22% equity interest in Fengsheng was transferred to Geely in exchange for RMB 308 million (approximately $47.3 million) in cash.

Zhejiang Provincial Administration for Market Regulation recorded the update of the ownership of Fengsheng on March 9, 2021.

Mr. Hu Xiaoming, Chairman and Chief Executive Officer of Kandi, commented, "Since Geely took control of Fengsheng, it experienced large losses for a variety of reasons. To eliminate the impact of these losses on Kandi, our senior management-- authorized by the Board of Directors-- decided to transfer our ownership position to Geely. After friendly negotiations, the terms of the transfer were agreed upon and approved by the Zhejiang Provincial Administration for Market Regulation."

Hu continued, "By exiting the Fengsheng partnership, Kandi is no longer bound by the associated non-compete provisions. We are now free to more aggressively pursue the burgeoning electric vehicle opportunity in China."