ADMINISTRATIVE PROCEEDING

File No. 3-21697

September 21, 2023 – The Securities and Exchange Commission today announced settled charges against Kandi Technologies Group, Inc. (“Kandi”), a China-based vehicle manufacturer. The SEC’s Order finds that throughout 2019 and 2020, Kandi made materially misleading statements and omissions in periodic filings and press releases about its planned launch of highway passenger electric vehicles (“EVs”) in the United States. Without admitting or denying the findings, Kandi consented to a cease-and-desist order and payment of a $710,000 civil penalty.

As described in the SEC’s order, Kandi stated in a February 20, 2019 press release that a recent approval of certain Kandi EVs by the National Highway Traffic Safety Administration demonstrated that the company’s EV models met “all the necessary requirements and standards of the U.S. government.” According to the order, this statement was materially misleading because while these vehicles satisfied certain U.S. safety requirements, other safety requirements remained unmet. Kandi’s EVs never met all U.S. safety standards, and the company never sold its EVs to U.S. consumers.

The order also describes an October 2, 2019 press release and a Form 10-Q filed with the Commission on November 12, 2019, wherein Kandi stated that it had entered into a contract to supply its U.S. subsidiary with 2,000 EVs at a value of approximately $32 million. According to the order, Kandi claimed that delivery of the first 200 vehicles was expected by the end of 2019. According to the order, the purported contract did not provide for shipment of 200 vehicles by the end of 2019, and no such vehicles were shipped. The order also finds that, in 2020, Kandi made materially misleading statements about its planned sales in the U.S. of “street-legal” and “highway-legal” EVs, and that no such vehicles were ever sold in the U.S.

The SEC’s order finds that Kandi violated the antifraud and reporting provisions of the federal securities laws. The order finds that Kandi violated Section 17(a)(3) of the Securities Act of 1933, and Section 13(a) of the Securities Exchange Act of 1934, and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder.

The investigation was conducted by Brian Vann, David Miller and Melvin Warren, with assistance from Dean Conway, as well as Matthew Greiner and Bonnie Kartzman in the Office of International Affairs. The investigation was supervised by Carolyn Welshhans and Brian Quinn. The Commission acknowledges the assistance of the China Securities Regulatory Commission.