Jinhua, China, December 29, 2020 -- Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (the “Company” or “Kandi”) announced today that it entered into a strategic cooperation agreement with the Hangzhou Branch of the Agricultural Bank of China.
Given China’s effort to both encourage the battery swap model for electric vehicles and to support a compliant online ride-sharing market, a strategic partnership was established among Zhejiang Kandi Vehicles Co., Ltd. (“Kandi Vehicles”), Zhejiang Ruiheng Technology Company (“Zhejiang Ruiheng”), China Battery Exchange (Zhejiang) Technology Co., Ltd. (“China Battery”) and the Hangzhou Branch of the Agricultural Bank of China. The parties will promote the implementation of the “300,000 government-accredited pure EVs with battery swap model within 5 years of rideshare” program. A signing ceremony was held at the headquarters of Hangzhou Branch of the Agricultural Bank of China on December 25, 2020.
Officers of Kandi and the Agricultural Bank of China Hangzhou Branch signing a strategic cooperation agreement
The strategic cooperation agreement entails:
1.The Agricultural Bank of China Hangzhou Branch will provide Kandi with an RMB 500 million (approximately USD $76.5 million) line of credit to support the first phase of the “300,000 government-accredited pure EVs with battery swap model within 5 years of rideshare” program. Additional credit will be provided based on the business progress.
2.The Agricultural Bank of China/Hangzhou Branch will treat Kandi Vehicles, Zhejiang Ruiheng, and China Battery as VIP customers to offer comprehensive financial services from the Bank’s available financial resources.
3.The Agricultural Bank of China Hangzhou Branch is an important business partner of Kandi Vehicles, Zhejiang Ruiheng, and China Battery. According to the needs of the business, Kandi Vehicles, Zhejiang Ruiheng, China Battery and their member companies are given priority services at Hangzhou Branch of Agricultural Bank of China in terms of settlement account opening, fund management, financial services, fund raising, coordination of subsidiaries and affiliated companies to handle related banking services, and more.
Agricultural Bank of China (ABC) is one of the “Big Four” state-owned banks managed by the central government in the People’s Republic of China. As an essential participant in China’s integrated financial system, ABC provides a range of corporate and retail banking products, including treasury operations and asset management, for a broad range of customers. Its business scope also includes, among other things, investment banking, fund management, financial leasing and life insurance. In 2019, Agricultural Bank of China was ranked No. 36 in Fortune’s Global 500.
Kandi Chairman and Chief Executive Officer Hu Xiaoming commented, “This strategic cooperation agreement with Agricultural Bank of China Hangzhou Branch and the parties’ in-depth collaboration will accelerate the “300,000 government-accredited pure EVs within 5 years of rideshare” program. Now that the program has started, the Agricultural Bank will continue to grant incremental credit to the project, which indicates their strong support to help provide a funding guarantee for the successful development of the rideshare program. Launch of the program will play a critical role in driving the rapid development of Kandi’s business and its future growth.”