Chinese electric vehicle maker Kandi came to the US markets via a 2007 reverse merger. In January 2013, financial newsletter Sharesleuth alleged that the company had exaggerated the number of electric vehicles sold. In March 2017, Kandi announced that its financial statements from 2014 to 3Q16 could not be relied upon. It appears that the company had not disclosed that its largest customer was owned by the CEO's son. This resulted in a shareholder bringing legal action against the company which appears to be ongoing. In November 2020, short-seller Hindenburg Research published a report alleging the Kandi was faking its sales. Despite the rotation of smaller auditors, CFOs, audit committee members and multiple short-seller reports, Kandi managed to raise US$160m in fresh equity in November 2020 and published audited financials in March 2021. As such, the allegations remain unproven.
Last updated September 2021
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