{"id":394421,"date":"2020-12-07T09:18:11","date_gmt":"2020-12-07T14:18:11","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=394421"},"modified":"2020-12-07T09:18:11","modified_gmt":"2020-12-07T14:18:11","slug":"kandi-technologies-issues-chairmans-letter-to-shareholders","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/kandi-technologies-issues-chairmans-letter-to-shareholders\/","title":{"rendered":"Kandi Technologies Issues Chairman\u2019s Letter to Shareholders"},"content":{"rendered":"
\n

Jinhua, China, Dec. 07, 2020 (GLOBE NEWSWIRE) — Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (the \u201cCompany\u201d or \u201cKandi\u201d) today issued a letter to its shareholders from the Chairman as below:<\/p>\n

Dear Kandi Shareholder,<\/p>\n

On November 30, 2020, a firm with an acknowledged short position in Kandi stock issued a \u201cresearch report\u201d that leveled a series of inaccurate allegations regarding Kandi and its management team.\u00a0 The firm that issued the report is shorting our stock and will profit if the stock price declines.\u00a0 In contrast, the Company\u2019s motive is to create value for all shareholders by building a durable and profitable leader in a dynamic growth industry.\u00a0\u00a0 It is clear from this review that the report contains a variety of misleading accusations that are either thinly veiled assertions of opinion, or based on previously reported historical events. As one example, they question the odds of success of our ride-sharing initiative.\u00a0 Anyone, you included, is free to assess the likelihood of success of our business strategy. \u00a0Merely asserting an opinion on our strategy proves nothing about our trustworthiness.\u00a0 Assertions like this, we will ignore.\u00a0 While the entire report lacks merit, the Company and its management believe that it would be helpful to our shareholders to address the inaccuracies that have received significant press attention.<\/p>\n

    \n
  1. By mischaracterizing certain documents from 2014, the report insinuates that I participated in a scheme to inflate the price of our stock during the reverse merger process.\u00a0 This is inaccurate because, as the report acknowledges, neither I nor the Company were ever charged with any such violations.\u00a0 This is not new information and was previously disclosed in our regulatory filings.
    \u00a0<\/li>\n
  2. The\u00a0Company\u2019s participation in Chinese government subsidy programs through a joint venture (the \u201cJV Company\u201d) is well documented in public filings.\u00a0 Contrary to the report\u2019s allegations, the JV Company properly received subsidy payments for all electric vehicles sold prior to 2016 and the JV Company\u2019s dual production licenses were approved in August 2019. According to government policy, any company that improperly participated in the subsidy program would not receive any subsidy payments nor dual production licenses.
    \u00a0<\/li>\n
  3. As with other aspects of the report, the Company\u2019s decision to change auditors was previously disclosed and resulted from Kandi\u2019s growth rather than any sort of alleged \u201cfraud\u201d.\u00a0 For example, in 2019 we changed to an auditor that is subject to inspection by the Public Company Accounting Oversight Board (\u201cPCOAB\u201d).\u00a0 Our current auditor is a leader in providing accounting services to Chinese companies listed in the United States.
    \u00a0<\/li>\n
  4. The report\u2019s assertions of \u201crelated party\u201d transactions and \u201cfabricated sales\u201d suffer from a number of defects:
    \u00a0\n
      \n
    1. Chaoneng\u2019s legal representative (Hu Yiheng) is not<\/em> currently an executive of Kandi as the report contends.\u00a0 In fact, Mr. Hu Yiheng resigned from Kandi in April 2011 to start Chaoneng.\u00a0 The report uses misleading quotes from an October 2010 article as support for its contention that Mr. Hu Yiheng is still with Kandi.
      \u00a0<\/li>\n
    2. When it was first established in 2011, Chaoneng rented office space from Kandi and listed its landlord\u2019s phone number (0579-82239276) for business registration purposes.\u00a0 This is not <\/em>Chaoneng\u2019s current telephone number.
      \u00a0<\/li>\n
    3. Chaoneng is located in the same industrial park complex as Kandi, but not<\/em> at the same address (as the report contends). Chaoneng is the fourth building on the lot while Zhejiang Kandi Smart Battery Swap Technology Co., Ltd (formerly Jinhua An Kao Power Technology Co., Ltd) is located at the north side of the first factory building. Chaoneng provides maintenance services to vehicles manufactured by Kandi at that location. The reference to \u201cKandi\u201d in the signage refers to their services for Kandi vehicles, not Kandi as a company.\u00a0 Kandi and Chaoneng are not related parties.
      \u00a0<\/li>\n
    4. The report mistakenly contends that Massimo Motor Sports and its owner David Shan are undisclosed related parties of Kandi.\u00a0 Mr. Shan left SC Autosports (formally named Sportsman Country) when Kandi acquired it in 2018 and no longer has any affiliation with Kandi.
      \u00a0<\/li>\n
    5. Kuke was a subsidiary of Kandi until January 2008. In February 2008, Kuke was spun-off from Kandi and has been an independent entity since that time. While Kuke has been the exclusive agent of Kandi\u2019s products in the United States since August 2015, Kandi plans to end this exclusivity in 2021 based on the expected growth in the United States of Kandi\u2019s subsidiary SC Autosports.
      \u00a0<\/li>\n
    6. The report mistakenly contends that KANDI USA and JASS MOTORSPORTS have the same address. KANDI USA closed in November 2015. There is no affiliation between Kandi USA and JASS MOTORSPORTS.
      \u00a0<\/li>\n
    7. Finally, Kandi\u2019s financial reports are audited, and care is taken to properly record sales.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

      Accordingly, and contrary to the report\u2019s allegations, we are enthusiastic about the progress we made in 2020. Our ATV sales achieved substantial growth, while unit sales of the Scrou-produced balancing scooters should exceed 500,000 in 2020 and we expect sales to exceed 3 million units in 2021. \u00a0Prospects for EV parts sales are strong. Our K23 and K27 EV models received the required clearance from the United States Environmental Protection Agency (EPA) via Certificates of Conformity. \u00a0Our K27 model recently met the safety regulations of the U.S. Department of Transportation FMVSS 500 and is scheduled to be launched on the market soon. \u00a0Safety certification for the K23 is being finalized and we anticipate customer deliveries in the first quarter of 2021. The \u201c300,000 government-accredited pure EV within 5 years rideshare\u201d program has officially started in the city of Shaoxing in Zhejiang province, and in the city of Haikou in Hainan province. \u00a0We strongly believe that the program will drive sales growth of our EV and battery swap equipment in 2021. In addition, our new 1 million plus square feet (100,000 square meters) facility will be completed in January 2021 and is expected to start production in the first quarter of 2021.<\/p>\n

      To conclude, we strongly believe that this report is laced with innuendo and supposition, which are countered by our proven prospects for future growth.\u00a0 Rest assured that we will continue to operate with the highest standards in order to maximize shareholder value.<\/p>\n

      Most sincerely,<\/p>\n

      Hu Xiaoming
      Chairman and Chief Executive Officer
      Kandi Technologies Group<\/p>\n

      \n About Kandi Technologies Group, Inc.<\/strong>\n <\/p>\n

      Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. (“Kandi Vehicles”) and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, SC Autosports, LLC (d\/b\/a Kandi America), the wholly-owned subsidiary of Kandi in the United States and Fengsheng Automobile Technology Group Co., Ltd (formerly known as Kandi Electric Vehicles Group Co., Ltd., the \u201cAffiliate Company\u201d). Kandi Vehicles has established itself as one of China’s leading manufacturers of pure electric vehicle parts and off-road vehicles.<\/p>\n

      In 2013, Kandi Vehicles and Geely Group, China’s leading automaker, jointly invested in the establishment of the Affiliate Company in order to develop, manufacture and sell pure electric vehicle (“EV”) products. Geely Group (including its affiliate) and Kandi Vehicles currently holds 78% and 22% of the equity interests in the Affiliate Company, respectively. The Affiliate Company has established itself as one of the driving forces in the development and the manufacturing of pure EV products in China.<\/p>\n

      More information about KNDI is available on the Company’s corporate website at http:\/\/www.kandivehicle.com. The Company routinely posts important information on its website.<\/p>\n

      \n Safe Harbor Statement<\/strong>\n <\/p>\n

      This press release contains certain statements that may include “forward-looking statements.” All statements other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on the SEC’s website (http:\/\/www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.<\/p>\n

      Follow us on Twitter: @ Kandi_Group<\/p>\n

      Contacts:<\/p>\n

      \n Kandi Technologies Group, Inc.<\/u>
      \n
      Ms. Kewa Luo
      +1 (212) 551-3610
      IR@kandigroup.com<\/p>\n

      \n The Blueshirt Group<\/u>\n <\/p>\n

      Mr. Gary Dvorchak, CFA
      gary@blueshirtgroup.com<\/p>\n

      Ms. Susie Wang
      susie@blueshirtgroup.com<\/p>\n

      \u00a0<\/p>\n


      \n
      \n \n <\/div>\n

      <\/div>\n","protected":false},"excerpt":{"rendered":"

      Jinhua, China, Dec. 07, 2020 (GLOBE NEWSWIRE) — Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (the \u201cCompany\u201d or \u201cKandi\u201d) today issued a letter to its shareholders from the Chairman as below: Dear Kandi Shareholder, On November 30, 2020, a firm with an acknowledged short position in Kandi stock issued a \u201cresearch report\u201d that leveled a series of inaccurate allegations regarding Kandi and its management team.\u00a0 The firm that issued the report is shorting our stock and will profit if the stock price declines.\u00a0 In contrast, the Company\u2019s motive is to create value for all shareholders by building a durable and profitable leader in a dynamic growth industry.\u00a0\u00a0 It is clear from this review that the report contains a variety of … <\/p>\n

      Continue reading “Kandi Technologies Issues Chairman\u2019s Letter to Shareholders”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-394421","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\nKandi Technologies Issues Chairman\u2019s Letter to Shareholders - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/kandi-technologies-issues-chairmans-letter-to-shareholders\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kandi Technologies Issues Chairman\u2019s Letter to Shareholders - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Jinhua, China, Dec. 07, 2020 (GLOBE NEWSWIRE) — Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (the \u201cCompany\u201d or \u201cKandi\u201d) today issued a letter to its shareholders from the Chairman as below: Dear Kandi Shareholder, On November 30, 2020, a firm with an acknowledged short position in Kandi stock issued a \u201cresearch report\u201d that leveled a series of inaccurate allegations regarding Kandi and its management team.\u00a0 The firm that issued the report is shorting our stock and will profit if the stock price declines.\u00a0 In contrast, the Company\u2019s motive is to create value for all shareholders by building a durable and profitable leader in a dynamic growth industry.\u00a0\u00a0 It is clear from this review that the report contains a variety of … Continue reading "Kandi Technologies Issues Chairman\u2019s Letter to Shareholders"\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.marketnewsdesk.com\/index.php\/kandi-technologies-issues-chairmans-letter-to-shareholders\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Newsdesk\" \/>\n<meta property=\"article:published_time\" content=\"2020-12-07T14:18:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.globenewswire.com\/newsroom\/ti?nf=ODA5Nzg3MiMzODU5NTM1IzUwMDA2OTkzNw==\" \/>\n<meta name=\"author\" content=\"Newsdesk\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Newsdesk\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/kandi-technologies-issues-chairmans-letter-to-shareholders\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/kandi-technologies-issues-chairmans-letter-to-shareholders\\\/\"},\"author\":{\"name\":\"Newsdesk\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#\\\/schema\\\/person\\\/482f27a394d4fda80ecb5499e519d979\"},\"headline\":\"Kandi Technologies Issues Chairman\u2019s Letter to Shareholders\",\"datePublished\":\"2020-12-07T14:18:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/kandi-technologies-issues-chairmans-letter-to-shareholders\\\/\"},\"wordCount\":1454,\"image\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/kandi-technologies-issues-chairmans-letter-to-shareholders\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.globenewswire.com\\\/newsroom\\\/ti?nf=ODA5Nzg3MiMzODU5NTM1IzUwMDA2OTkzNw==\",\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/kandi-technologies-issues-chairmans-letter-to-shareholders\\\/\",\"url\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/kandi-technologies-issues-chairmans-letter-to-shareholders\\\/\",\"name\":\"Kandi Technologies Issues Chairman\u2019s Letter to Shareholders - 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Market Newsdesk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketnewsdesk.com\/index.php\/kandi-technologies-issues-chairmans-letter-to-shareholders\/","og_locale":"en_US","og_type":"article","og_title":"Kandi Technologies Issues Chairman\u2019s Letter to Shareholders - Market Newsdesk","og_description":"Jinhua, China, Dec. 07, 2020 (GLOBE NEWSWIRE) — Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (the \u201cCompany\u201d or \u201cKandi\u201d) today issued a letter to its shareholders from the Chairman as below: Dear Kandi Shareholder, On November 30, 2020, a firm with an acknowledged short position in Kandi stock issued a \u201cresearch report\u201d that leveled a series of inaccurate allegations regarding Kandi and its management team.\u00a0 The firm that issued the report is shorting our stock and will profit if the stock price declines.\u00a0 In contrast, the Company\u2019s motive is to create value for all shareholders by building a durable and profitable leader in a dynamic growth industry.\u00a0\u00a0 It is clear from this review that the report contains a variety of … Continue reading \"Kandi Technologies Issues Chairman\u2019s Letter to Shareholders\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/kandi-technologies-issues-chairmans-letter-to-shareholders\/","og_site_name":"Market Newsdesk","article_published_time":"2020-12-07T14:18:11+00:00","og_image":[{"url":"https:\/\/www.globenewswire.com\/newsroom\/ti?nf=ODA5Nzg3MiMzODU5NTM1IzUwMDA2OTkzNw==","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/kandi-technologies-issues-chairmans-letter-to-shareholders\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/kandi-technologies-issues-chairmans-letter-to-shareholders\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"Kandi Technologies Issues Chairman\u2019s Letter to Shareholders","datePublished":"2020-12-07T14:18:11+00:00","mainEntityOfPage":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/kandi-technologies-issues-chairmans-letter-to-shareholders\/"},"wordCount":1454,"image":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/kandi-technologies-issues-chairmans-letter-to-shareholders\/#primaryimage"},"thumbnailUrl":"https:\/\/www.globenewswire.com\/newsroom\/ti?nf=ODA5Nzg3MiMzODU5NTM1IzUwMDA2OTkzNw==","inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/kandi-technologies-issues-chairmans-letter-to-shareholders\/","url":"https:\/\/www.marketnewsdesk.com\/index.php\/kandi-technologies-issues-chairmans-letter-to-shareholders\/","name":"Kandi Technologies Issues Chairman\u2019s Letter to Shareholders - 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