Zhejiang Kandi Vehicles Co., a wholly owned subsidiary of Chinese EV maker Kandi Technologies Group, Inc., signed a cooperation framework agreement with Shanghai Maple Guorun Automobile Co., Ltd., a 99% owned subsidiary of Geely Automobile Holdings Ltd. to establish a joint venture company, named Zhejiang Kandi Electric Vehicles Investment Co, Ltd. to engage in the investment, research and development, production, marketing and sales of electric vehicles in China.
Pursuant to the terms of the framework agreement, the JV Company will be owned 50% by Shanghai Maple and 50% by Kandi Vehicles. The registered capital of the JV Company will be RMB 1,000,000,000 (US$160 million), with 50% to be contributed by each party. Upon the establishment of the JV Company, the JV Company will acquire assets from Kandi and Geely Auto in order for the JV Company to process the necessary properties, assets and technologies to conduct the EV business.
To enable the proposed enterprise to take place, both Kandi and Geely Auto will establish new wholly-owned subsidiaries and inject certain assets into these companies. The JV Company will then acquire all the equity interests in each of these companies.
The board of directors of the JV Company will consist of four directors, of which two will be nominated by Kandi Vehicles and two will be nominated by Shanghai Maple. Mr. Shufu Li, Chairman of Geely Auto will be appointed to be the first Chairman of the JV Company and Mr. Xiaoming Hu, Chairman & CEO of Kandi will be appointed to be first General Manager. Each appointment is for a term of three years.