Kandi Technologies Group, Inc. recently announced that on Dec. 25, 2019, the company entered into a Strategic Cooperation Agreement with Jiangsu Jinpeng Group Ltd. whereby Kandi and Jinpeng have agreed to jointly develop the Chinese pure electric vehicles (EV) market. Hu Xiaoming, chairman of Kandi, and Lu Shouguang, chairman of Jin Peng, attended the signing ceremony.
Pursuant to the Agreement, the two parties will begin strategic cooperation in the following three areas:
- Kandi Electric Vehicle (Hainan) Co., Ltd., Kandi’s wholly-owned subsidiary, will exchange a certain percentage of its equity interests with Jiangsu Jimai New Energy Automobile Co., Ltd., a subsidiary of Jinpeng. The specific terms of such equity exchange will be set forth in the Equity Exchange Agreement the parties are to sign separately.
- The two parties will jointly establish a Compliant Ride-sharing Vehicle Operating Company with Zhejiang Ruibo New Energy Vehicle Service Company Ltd., one of the largest ride-sharing vehicle operators that use a battery exchange model in China. With the goal of becoming the leading Chinese ride-sharing operator in China’s third and fourth tier cities, the Operating Company aims to promote 300,000 government-accredited vehicles within five years. The cooperation will be carried out in accordance with the specific terms in a separate cooperation agreement regarding Operating Company.
- Both parties will use their respective advantages to jointly create several pure EV models that meet China’s ride-sharing market demands, as well as consumers’ needs from the United States and other overseas markets. In 2020, both parties plan to deliver Kandi’s model K23 to satisfy China’s ride-sharing market as well as the U.S. demand for Kandi models K23 and K27 in batches. The details of each party’s responsibilities will be specified in a separate agreement.
Hu Xiaoming commented, “We are very pleased to establish this strategic partnership with Jinpeng in addition to having established Kandi Electric Vehicle Group Co., Ltd. (now called Fengsheng Automobile Technology Group Co., Ltd. or the Affiliated Company) with Geely. As a pioneer of the battery exchange model in China’s pure electric vehicle industry, Kandi has been in a leading position in the pure electric vehicle time-sharing leasing market. During 2018 and the first half of 2019, the Affiliated Company has been focused on laying the groundwork for this expansion. It has strategically focused on pure electric vehicle production and has made impressive progress in new vehicle models development since Geely became its controlling shareholder. I am confident that the Affiliated Company will have a breakthrough in 2020.
“In order to maximize Kandi’s strength, facilitate the cooperation with Jinpeng and take full advantage of its network resources in the third and fourth tier cities, Kandi and Jinpeng will work closely to execute the project of providing 300,000 government-accredited online ride-sharing vehicles within five years. This collaboration will provide significant opportunities for the growth of the online ride-sharing business in China’s third and fourth tier cities. After a series of restructurings in 2019, I am deeply confident of Kandi’s bright future and our strong integrated capabilities and comprehensive business model to accelerate the multi-level growth of the EV industry in 2020,” Hu concluded.