Kandi Reports The Anticipated Receipt of RMB 305 Million Due to Tax Credit Refund
10/01/2018
Jinhua, China--(October 1, 2018) - Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (the "Company," "we" or "Kandi"), announced today that Zhejiang Geely Auto Limited - Shanghai Subsidiary ("Zhejiang Geely"), a business partner of Kandi Electric Vehicles Group Co., Ltd. (the "JV Company", a joint venture owned by Kandi Vehicles, Geely Group, Ltd., and Geely Group (Ningbo) Ltd. 50%, 26.08%, and 23.92% respectively), received a total of RMB 305 million (approximately USD 44.3 million) in tax credits. The refund of the Value Added Tax ("VAT") remaining tax credit is made by the State Administration of Taxation (the "SAT") through a new policy intended to promote sustainable economic development. A select number of advanced equipment manufacturers were given tax refunds on the VAT remaining tax credit at the end of 2018's tax season. The amount refunded to Zhejiang Geely corresponds to the production and sale of Kandi products by the JV Company in the years of 2015, 2016, and 2017. As a result, the JV Company expects to receive such a payment from Zhejiang Geely.
Mr. Hu Xiaoming, Chairman and CEO of Kandi commented, "we are very pleased to have the prospect to receive such a substantial amount of additional capital. The refunded tax credits demonstrate that the State's focus is on supporting the advanced manufacturing industry. This additional cash flow will further improve the JV Company's competitiveness."
