JINHUA, CHINA, Jul 08, 2009 – (Motor Sports Newswire) – Kandi Technologies, Corp. (NASDAQ: KNDI), an established China-based leader in the design and manufacture of all terrain recreational vehicles, announced today it has signed letters of intent with the Postal Services in the cities of Jinhua City and Hangzhou City in Kandi’s home province of Zhejiang for the sale of Kandi’s new battery powered, super mini vehicles. The Company also announced it believes it is now in the final stage of the Chinese government approval process for sales in China of its all electric super mini car, the COCO, following more than six months of testing.
While the Company did not provide details on the letters of intent, Mr. Xiaoming Hu, Kandi’s CEO and Chairman, stated, “We see these agreements as paving the way for the sale of our low cost, battery powered super mini cars to these and other post offices throughout China, who with the aid of strong government financial incentives are aiming to convert their fleets to low cost, pollution free electric vehicles.” He continued, “We believe we can produce high quality vehicles that meet and exceed Post Office requirements throughout the country, as well as those of other governmental agencies that qualify for government grants. Fleet sales such as these, if concluded, combined with sales to individual consumers, will help us achieve our sales objectives.”
Passing All Tests “With Flying Colors”
With respect to the timing of final government approvals for sales of the COCO in China, Mr. Hu stated, “Since November, the COCO has undergone testing by the required government agencies in China and thus far has emerged ‘with flying colors,’ including the rigorous 15,000 kilometer safety and stability test run by the Chinese Automobile Quality Monitor Authority.”
“We believe we are now in the final stage of the approval process with the Ministry of Industry and Information Technology of the PRC (MIIT). The feedback we’ve gotten thus far is quite positive, especially with regard to COCO’s appearance and quality, which all seem to agree are second to none,” said Mr. Hu.
“Meanwhile,” Mr. Hu stated, “we are continuing to move ahead with our marketing campaign with dealers and consumers. We believe the plug-in COCO, with its low price tag, low maintenance costs and the ability to travel on a single charge up to 45 miles or so at a top speed of 25 mph, will be an ideal vehicle for many commuters, who also will be attracted to its eyestopping appearance. This is a very exciting time for Kandi.”
About the Company
In 2008, Kandi Technologies, Corp. (NASDAQ: KNDI) generated nearly $41 million in sales and profits of about $5 million, principally from its core All Terrain Recreational Vehicle (ATRV) businesses. The Company ranks as one of the largest manufacturers and exporters of go-karts in China, making it a world leader in the production of this increasingly popular recreational vehicle. It also ranks among the leading manufacturers in China of all terrain vehicles (ATVs). A more recent Company focus has been on specialized utility vehicles (UTVs), especially for agricultural purposes. The Company also is launching a second generation high mileage, two seater three-wheeled motorcycle, and a highly economical, beautifully designed, super mini car — the COCO — for neighborhood driving and commuting. Kandi believes that battery powered, electric super minis will become the Company’s largest revenue and profit generator. While nearly all Kandi products are exported, including more than 65% to the U.S., the Company is intensifying efforts to shift 50% of its sales to China where markets have continued to be strong.
The Company’s products can be viewed at http://www.chinakandi.com.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the Securities and Exchange Commission.