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Kandi Technologies Shares Rise; Gets JV Subsidy

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Kandi Technologies Group Inc (NASDAQ: KNDI) rose sharply Tuesday after the Chinese electric vehicle maker disclosed a $44.3 million government subsidy payment to its 50-50 joint venture related to sales in the second half of last year.

The joint venture had net sales last year of $215.5 million and sold 10,935 electric vehicles in China during 2014.

In contrast, Tesla Motors Inc (NASDAQ: TSLA) reportedly sold about 2,500 of its Model S vehicles in China during the same period.

The Kandi Electric Vehicles Group Co., is a 50-50 joint venture with GEELY AUTOMOBILE HLD (OTC: GELYF), which manufactures automobiles under the Geely and Volvo brands.

Kandi Technologies' revenue last year grew 80 percent to $170.2 million. The company swung to an adjusted profit of $0.29 a share, from an adjusted loss of $0.61 a year earlier.

Kandi Chief Executive Hu Xiaoming said that given "strong financial support" from the national government and growing demand, "we believe Kandi will continue to lead the market" in China.

Kandi traded recently at $9.03 up nearly 7 percent; Geely rose more than 3 percent to about $0.52 on the U.S. over-the-counter market.

 

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