KNDI - promising news!
JINHUA, CHINA -- (Marketwire) -- 10/05/10 -- Kandi Technologies, Corp. (NASDAQ: KNDI), a leading Chinese exporter of recreational vehicles, developer of the "COCO" all electric LSV, and a leader in Electric Vehicle (EV) development in China, today announced it has formalized a three partner joint venture with China's leading battery maker, Tianneng Power International, Ltd., and Jinhua Bada Group, a subsidiary of State Grid Power Corporation, China's largest power company, to create China's first Electric Vehicle (EV) battery replacement services company.
Realization of the Kandi EV Business Model
The pioneering agreement signed on September 28th, 2010, paves the way for the realization of Kandi's EV business model in Jinhua. In this model, purchasers of Kandi EVs will have easy access to multiple, easily reached changing stations throughout the city, eliminating concerns about limited driving ranges and battery maintenance. Further, by having batteries available on a rental basis, rather than having to purchase them with their vehicles, the purchase cost of new EVs will be lowered substantially.
The Company added that construction in Jinhua by State Grid Corporation of the main battery charging station within the city is now expected to be completed in October. Following that, in November, Kandi anticipates that sales in Jinhua of the previously announced 3000 Kandi EVs being subsidized by the local and regional government will commence.
Two Revenue Streams
For Kandi, this will mean the development of two revenue streams -- one from the sale of its battery-powered vehicles and the other from a share of the battery rental, replacement, charging and recycling fees generated by the new joint venture.
Kandi said a key enabling feature of the changing stations will be Kandi's quick battery change technology, which will permit drivers to have their batteries exchanged in a matter of minutes.
Mr. Xiaoming Hu, Chairman and CEO of the Company, stated, "Through the cooperation of our alliance and joint venture partners, and the local and regional government authorities, the dream of a model EV city in Jinhua will soon be realized and help us gain national recognition for Jinhua as a pilot new energy city. We believe the Jinhua model will prove to be a boon to all local residents and EV purchasers and, if successful, be readily replicable throughout China and elsewhere in the world. As we see it, this will truly be the launch of a new EV era in China, bringing with it the promise of cleaner air and reduced reliance on petroleum."
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