Hindenburg Research, the short seller group, best known for beating down Nikola Corporation (NASDAQ: NKLA) share price by 50%, fired new shots. This time the target is Kandi Technologies Group Inc (NASDAQ: KNDI) stock.
Most important points are listed historically, we are pasting these below.
2008: Kandi “Launched” in the U.S. in 2008. Its First Batch of Cars Were Seized by U.S. Customs After Being Imported Illegally. The Launch Failed
2014: The Architects of Kandi’s Reverse Merger Deal to Go Public Were Charged With Fraud by the SEC For, Among Other Things, Engaging in A Scheme With Kandi’s Chairman/CEO To Artificially Inflate Its Stock Price.
2016: Kandi’s Long-Serving Auditor Had Its Registration Revoked by the Public Company Accounting Oversight Board (“PCAOB”) Specifically for Failing to Catch Obvious Signs of Fraud at Kandi.
2016: The Chinese Government Announced That Kandi Had Been Involved in a Scheme Through its Joint Venture to Obtain Illegitimate EV Subsidies Through the Use of Sham Sales to Related Parties.
2017: Kandi Restated Its Financials to Account for Previously Undisclosed Related-Party Deals and Promised to Mend its Ways.
2017: The company promised to do better going forward, but given the lack of regulatory oversight and consequences: why would it? Kandi’s Top “Customer” From 2014-2017, Representing 63%-97% of its Sales, Was its Joint Venture Partner
But Following the Subsidy Scandal, Sales to the JV Partner Evaporated.
2019-2020:Despite the Virtual Elimination of Kandi’s Major Customer, Kandi’s Revenue Somehow Remained Stable…With the Help of Two Unnamed Mystery Customers. Kandi redacts the name of these key customers on its financials, referring to them as “Customer A” and “Customer B”. Kandi’s New Top Customer, Accounting for 55% of LTM Sales, Shares a Phone Number with a Kandi Subsidiary.
Kandi’s New Top Customer Shared an Executive with Kandi, Further Evidencing Close Ties Between the Two Companies.
2020: Kandi’s Latest 2020 U.S. Launch Efforts Appear to Be Delayed
Former Kandi America Employee: “If You Never Produce the Product Then It’s Just Smoke And Mirrors…”.
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