Kandi Technolgies Corp (KNDI)

[bullmarket2222]

DEAR FELLOW KANDI TECHNOLOGIES SHAREHOLDERS:

http://www.sec.gov/Archives/edgar/data/1316517/000114420411026983/v221488_ex99-1.htm

Recently there was an online story about our company, which was followed by significant volatility in our stock. The author presented the information in such a way that the clear implication was that some of the company’s revenue must have been inaccurately reported. That is not the case. Nearly all of the misinformation in the article is the result either of the author’s misunderstanding or inaccurately construing Kandi’s business, and in particular, its sources of revenue.

We take our fiduciary duty to shareholders and all stakeholders very seriously, and the inaccurate reporting by this website in no way reflects the current business of Kandi Technologies. In fact, Kandi has a strong U.S. presence in go-karts and specialized EV products, and we are making great strides in our EV business in China as we shift our focus toward this market. We stand by our business strategy and results. At the same time, we felt it was important to clarify several questions that were raised. The following are our responses on the topics raised in the inaccurate article.

1. Source of Revenue. As we have described clearly and repeatedly in our public filings, Kandi Technologies Corp. (“Kandi”) is a leading Chinese manufacturer and supplier of off-road vehicles and developer of pure electric vehicles (EV). As disclosed in our 10-K reports, we sell our vehicles to distributors, Chinese exporters and export agents, but not dealers. Kandi itself has no direct dealer network and is not involved in the distributors’ retail supply chain. Kandi is not aware of the dealers to whom the distributors sell our vehicles, and we have no relationship with them. To the best of our knowledge, these distributors through their dealer networks distribute our vehicles throughout the world.