Kandi Technologies Acquires Controlling Stake in Xinchu New Energy

About this update from Kandi Technologies Group, Inc.

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 en...

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