Seeking Alpha

Kandi Technologies (KNDI -7.7%) slides after announcing at the China International Green Vehicle...

Kandi Technologies (KNDI -7.7%) slides after announcing at the China International Green Vehicle Industry Expo that its wholly owned subsidiary, Zhejiang Kandi Vehicles, has signed a Cooperative Framework Agreement for the Promotion of Self-driving Electric Vehicle Rental for Public Transportation in Hangzhou Project with Zhejiang Guoxin Vehicle Leasing Company.
From other sites
Comments (2)
  • Harris Goldman
    , contributor
    Comments (133) | Send Message
    Monday August 13,2012 3:25PM


    Culture, Language Verses Perception:


    What should have been an exciting KNDI strong upside at the opening was quickly negated by a press release published by the KNDI Investor Relations Dept. just before the opening of trading. The press release (below in its entirety with the language snafu in RED ) confused many people. And this confusion has caused the stock to go down as low as 4.65 (-.27 ) as of 1pm. As my heading states, the differences between our culture, language...should have been continued with...."will necessarily lead to misperceptions by those reading them". Specifically, the press release announces that a "cooperative framework agreement" was signed between KNDI and the Zhejiang Guoxin Leasing Company during the Expo. While this is true, what confused many of the KNDI investors and detractors is that this is a totally different agreement than the one which was awarded to KNDI over a week ago (20,000 unit long-term lease deal for commuter residents of Hangzhou and its environs). This new agreement for 100,000 is for short-term leasing, public transportation they call it, which utilizes the "stand-alone parking garage concept of pick-up and drop-off....Think Hertz with a twist!...


    The faux pas in question is the language from the PR which starts with......"Guoxin Leasing will first purchase 200 EVs from Kandi Vehicles to launch the project, and the final terms and time for delivery have yet to be determined."...very confusing with no context on whether the PR is talking about the original deal for 20,000 EV units or a new one for 100,000...Let me confirm that the last reference of a new deal for 100,000 is true.


    (should be a pic here of the stand-alone garage for parking and charging - laptop won't cooperate)
    A friend/colleague of mine was so upset by the above referenced press release that he started shooting off emails to the powers that be at KNDI. Here is a paraphrased copy of the first one sent to Investor Relations:


    "Got in touch with Kewa (IR) before the open. Jumped all over her about how confusing these latest two PR's were coming out before the "Roll Out" announcement. I told here people are going to think the 200 cars for the 20,000 car Hangzhou Lease Program. And it wouldn't surprise me if the stock went down this morning.


    Here response was exactly what I was afraid of:


    Mr. Hu didn't spend any time on the Hangzhou 20k lease because as far as he is concerned, that was already announced with the PR a couple of weeks ago. In his mind, that framework agreement made back then was the final deal. Incredible when the US PR's are more confusing then the China translated articles.


    Without a doubt, the two PR's that came out today were phenomenal news in that it now also appears the 100,000 car vertical parking program has also now been approved.


    Done properly and clearly, with the news that has come out over the weekend, the stock should be closer to 10 then to 5.


    All I can say is that as the magnitude of what just happened this weekend starts to circulate, the stock will launch. Whether thats's a day or week or even a month is irrelievant for long term holders. We now have it confirmed that KNDI is without a doubt the World leader in EV's and EV technology."._,_.___


    Kandi Signed Cooperative Framework Agreement With Zhejiang Guoxin Vehicle Leasing Company to Promote Self-Driving Pure Electric Vehicles Rental for Public Transportation in Hangzhou Project
    08/13/2012 08:45:25 ET


    JINHUA, CHINA, Aug 13, 2012 (MARKETWIRE via COMTEX News Network) -- Kandi Technologies, Corp. (the 'Company' or 'Kandi') (NASDAQ:, 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.


    The strong support and effort of Zhejiang province and Hangzhou city governments to promote electric vehicle 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 Vehicles to launch the project, and the final terms and time for delivery have yet to be determined.


    3. Kandi Vehicles 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 Vehicles 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 Vehicles 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 the next five years of development for Kandi.


    About Kandi Technologies, Corp.


    Kandi Technologies, Corp. ( is a manufacturer and exporter of a variety of vehicles in China, making it a world leader in the production of popular off-road vehicles (ORVs). It also ranks among the leading manufacturers in China of all-terrain vehicles (ATVs), specialized utility vehicles (UTVs), and a recently introduced second-generation high mileage, two-seat three-wheeled motorcycle. Another major company focus has been on the manufacture and sale of the COCO electric vehicle (, a highly economical, beautifully designed, all-electric super mini-car for neighborhood driving and commuting. The convertible and hardtop models of the COCO EV are available in the United States and other countries, while the Chinese government has approved the sale of Kandi EVs in China since 2010. More information can be viewed at its corporate website is




    I too was upset but have taken a somewhat different road of dissent than my friend/colleague. When the truth, as reported above comes out, all will be well in the valley. KNDI does, however, need to probably hire an additional "American" spokesman for the IR dept. The have been too many times that something gets lost in the Chinese translation; especially some things that should a positive for the company...and not turn out to be a temporary disaster._


    So, what was in reality a fantastic bit of news turned out to be a "trading price" debacle today. I have no doubt that this will straightened out shortly. I know this hard for some of you to believe right now but this an accumulation opportunity.....I know, it's easy for me to say._


    Hope this clears up the confusion. As I have writing this post I didn't realize that KNDI went down to 4.30....It's now back to 4.55 and rising fast....
    13 Aug 2012, 05:23 PM Reply Like
  • TK Shih
    , contributor
    Comments (2) | Send Message
    Whether a EV company makes or break depends a lot of the reliability and safety of the battery they use. Most of the major EV produces have neglected this aspect and poured in $billions in R&D for producing the EV but not the batteries. The slow market penetration is partly due to all the negative news of battery safety and performance. If end users are not happy with the EV they buy you don't get any referrals.


    You should focus more on who Kandi's battery suppliers are? Even though the battery capacity they are using is much smaller compared to main steam models from Renault/Nissan or GM or Ford but they still need to perform. China battery industry have focusing more on the medium end of EV batteries and they have not acquired high tech production know-how required to produce high end lithium battery packs for EV. They company that wins the race in selling EVs will need to have access to the right battery suppliers and China right now is not the place where you can find good EV lithium battery. That is why WanXiang (A huge Chinese battery company) is trying to cut short the learning curve by acquiring the trouble US battery company A123 system. Kandi won't be able to afford the expensive Japanese of Korean EV battery packs.


    14 Aug 2012, 02:18 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs