Kandi Technologies Acquires Controlling Stake in Xinchu New Energy

Kandi Technologies (NASDAQ:KNDI) agreed to acquire a 51% controlling stake in Hangzhou Xinchu New Energy for RMB20 million (about US$2.9 million) in cash, with closing expected in July 2026.

Rhea-AI Summary

Kandi Technologies (NASDAQ:KNDI) agreed to acquire a 51% controlling stake in Hangzhou Xinchu New Energy for RMB20 million (about US$2.9 million) in cash, with closing expected in July 2026.

The deal establishes Kandi’s entry into AI data center backup power and energy storage, leveraging Xinchu’s lithium battery and BMS solutions for data centers and telecom base stations.

Positive

• 51% controlling stake in Xinchu for RMB20 million establishes AI data center entry
• Expansion into backup power and energy storage for global AI data center market
• Access to Xinchu’s UPS lithium battery packs and high-rate backup power cabinets
• Leverage of Xinchu’s proprietary BMS and intelligent monitoring platform
• Kandi plans targeted capital support for Xinchu product development and expansion
• Xinchu expected to use Kandi’s global supply chain to optimize procurement costs

Negative

• RMB20 million cash outlay required to acquire 51% stake in Xinchu

Argus Jun 29 session

+17.69% close to close Open Argus

Details

News Market Reaction – KNDI

On Jun 29, the day this news came out, KNDI closed 17.69% above the previous close.

Data tracked by StockTitan Argus for the Jun 29 session.

Key Figures

Stake acquired: 51% controlling stake Cash consideration (RMB): RMB20 million Cash consideration (USD): US$2.9 million +1 more

Stake acquired

51% controlling stake

Equity interest in Xinchu New Energy

Cash consideration (RMB)

RMB20 million

Purchase price for 51% of Xinchu

Cash consideration (USD)

US$2.9 million

Approximate equivalent of RMB20 million

Discharge capability

6C discharge

High-rate backup power cabinets for data centers

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Key Terms

uninterruptible power supply (ups), battery management systems (bms), lithium battery, gpu

4 terms

uninterruptible power supply (ups) technical

"Xinchu’s commercial roadmap encompasses data center uninterruptible power supply (UPS)"

An uninterruptible power supply (UPS) is a device that provides immediate backup power and surge protection to electronic systems when the main electricity supply fails or fluctuates. For investors it matters because a UPS helps prevent costly downtime, data loss, damaged equipment and business disruption—think of it as a short-term battery or emergency parachute that keeps critical operations like trading platforms, servers and medical equipment running long enough to switch to a safe shutdown or secondary power source.

battery management systems (bms) technical

"proprietary Battery Management Systems (BMS), and a BMS platform that provides intelligent monitoring"

A battery management system (BMS) is the electronic controller that monitors and protects rechargeable battery packs by measuring charge levels, balancing individual cells, managing temperature, and preventing unsafe conditions like overcharge or overheating. For investors, a reliable BMS improves a battery product’s safety, lifespan and performance — which lowers warranty costs, supports regulatory approval and boosts the commercial value of electric vehicles, grid storage and any product relying on batteries, much like a trained driver keeping a car running efficiently and safely.

lithium battery technical

"an emerging provider of lithium battery backup power and battery management systems for data centers"

A lithium battery is a rechargeable energy cell that stores and releases electricity using lithium ions moving between two internal parts, like a refillable fuel tank for electronic devices and electric vehicles. Investors care because these batteries are central to mobile devices, renewable energy storage and electric transport, so their cost, performance, safety and supply chain influence manufacturing costs, product demand and the valuation of companies tied to clean energy and consumer tech.

gpu technical

"engineered to support the stringent power quality and reliability requirements of AI data centers and high-density GPU computing environments"

A GPU (graphics processing unit) is a specialized computer chip designed to handle many calculations at once, originally for rendering images and video but now widely used for tasks like artificial intelligence, data analysis and high-performance computing. Investors watch GPU demand and prices because strong sales often signal growth for chip makers and their customers, affect profit margins and capital spending, and can forecast wider trends in gaming, AI adoption and cloud services.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Establishes Kandi's entry into backup power and energy storage solutions for rapidly-growing AI data center market

Jinhua, China, June 29, 2026 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (“Kandi” or the “Company”) (NASDAQ GS: KNDI), a global innovator in intelligent equipment and a technology-driven platform company, today announced that it has entered into certain investment agreements to acquire a 51% controlling stake in Hangzhou Xinchu New Energy Technology Co., Ltd. (“Xinchu”), an emerging provider of lithium battery backup power and battery management systems for data centers and telecom base stations, for a total cash consideration of RMB20 million (approximately US$2.9 million). The transaction is expected to close in July 2026.

This investment marks Kandi’s strategic expansion into the global AI data center backup power and energy storage market, where demand is surging as AI infrastructure deployment accelerates. Founded by a team with extensive experience in data center backup power systems and telecom base station across Southeast Asia, the Middle East, and Africa, Xinchu designs, manufactures and deploys lithium battery solutions engineered to support the stringent power quality and reliability requirements of AI data centers and high-density GPU computing environments.

Xinchu’s core offerings include UPS lithium battery packs, high-rate backup power cabinets capable of 6C discharge and millisecond-level response time, proprietary Battery Management Systems (BMS), and a BMS platform that provides intelligent monitoring and system management capabilities. Xinchu’s commercial roadmap encompasses data center uninterruptible power supply (UPS) and Artificial Intelligence Data Center (AIDC) backup power solutions, and telecom base station backup power as its primary revenue streams. Its intelligent BMS platform serves as an orchestration hub for power network management and optimization. Together, these capabilities position Xinchu to expand its products and service offerings beyond hardware into higher-margin software and services over time.

“The rapid buildout of AI computing infrastructure worldwide depends on the underlying energy framework, power delivery, and system reliability, driving demand for next-generation power solutions,” said Chen Feng, Chief Executive Officer of Kandi. “This investment gives Kandi direct exposure to the energy infrastructure that enables AI compute at scale, establishing our position in an early-stage, structurally critical market that is poised for long-term global expansion.”

Unlike conventional data center applications, AI workloads generate rapid and sharp power fluctuations, requiring backup power systems capable of millisecond-level response time, high-rate discharge performance, and proactive power quality management. Grid reliability constraints in certain markets with underserved utility power infrastructure are emerging as a critical bottleneck to the continued deployment of AI infrastructure. These conditions are accelerating global demand for on-site backup power and energy storage solutions, creating significant market opportunities in regions where Xinchu has already established a meaningful commercial presence and execution capabilities.

The Company plans to support Xinchu’s growth through targeted capital allocation for product development and market expansion. Xinchu is also expected to leverage Kandi’s global supply chain to enhance procurement efficiency and support cost optimization initiatives.

Safe Harbor Statement

This press release contains certain statements that may include “forward-looking statements.” All statements other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on the SEC’s website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.

About Kandi Technologies Group, Inc.

Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) is a global innovator in intelligent equipment and a technology-driven platform company. Headquartered in Jinhua, China, the Company’s primary focus is on intelligent mobility solutions, with a strategic emphasis on the North American market, while actively pursuing opportunities in battery swap equipment, intelligent robotics and other emerging high-tech areas. Through its subsidiaries, Kandi Technologies leverages its robust manufacturing capabilities and technological expertise to deliver innovative products for a wide range of commercial and consumer applications.

For more information, please visit ir.kandigroup.com. The Company routinely posts important updates on its website.

For investor and media inquiries, please contact:

Kandi Technologies Group, Inc.
Kewa Luo
Tel: +1 (212) 551-3610
Email: IR@kandigroup.com 

Piacente Financial Communications
Brandi Piacente
Tel: +86-10-6508-0677
Email: Kandi@thepiacentegroup.com 

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What acquisition did Kandi Technologies (NASDAQ:KNDI) announce on June 29, 2026?

Kandi announced it will acquire a 51% controlling stake in Hangzhou Xinchu New Energy. According to Kandi, the deal targets Xinchu’s lithium battery backup power and BMS business for data centers and telecom base stations, expanding Kandi into AI data center energy infrastructure.

How much is Kandi Technologies paying for its 51% stake in Xinchu New Energy?

Kandi is paying RMB20 million, or about US$2.9 million, in cash for the 51% stake. According to Kandi, this investment secures control of Xinchu’s lithium battery and battery management system offerings serving data centers and telecom base stations.

When is the Kandi Technologies acquisition of Xinchu New Energy expected to close?

The Xinchu acquisition by Kandi is expected to close in July 2026. According to Kandi, completion of the transaction will give it a controlling interest and formalize its entry into AI data center backup power and energy storage markets globally.

How does the Xinchu New Energy deal expand Kandi Technologies’ AI data center exposure?

The deal gives Kandi direct exposure to AI data center backup power and energy storage. According to Kandi, Xinchu’s lithium battery packs, high-rate backup cabinets, and BMS platform support millisecond-level response and power quality required for high-density GPU computing environments.

What products and technologies does Xinchu New Energy contribute to Kandi Technologies?

Xinchu supplies UPS lithium battery packs, high-rate backup power cabinets, and proprietary BMS and monitoring platforms. According to Kandi, these offerings support AI data centers and telecom base stations and may enable Xinchu to grow higher-margin software and service revenues over time.

How does Kandi Technologies plan to support Xinchu New Energy after the acquisition?

Kandi plans to support Xinchu through targeted capital allocation for product development and market expansion. According to Kandi, Xinchu is also expected to use Kandi’s global supply chain to improve procurement efficiency and advance cost optimization initiatives across its backup power solutions.