CONCENTRATIONS

3 Months Ended

Mar. 31, 2015

CONCENTRATIONS [Text Block]

NOTE 8 – CONCENTRATIONS

(a) Customers

For the three-month period ended March 31, 2015, the Company’s major customers, each of whom accounted for more than 10% of the Company’s consolidated revenue, were as follows:

	Sales		Accounts Receivable
	Three Months	Three Months
	Ended	Ended	March 31	December 31
	March 31	March 31
Major Customers	2015	2014	2015	2014
Kandi Electric Vehicles (Changxing) Co., Ltd.	40%	43%	34%
Zhejiang Zuozhongyou Electric Vehicle Service Co., Ltd.	32%		23%
Shanghai Maple Auto Co., Ltd		19%		8%
Kandi Electric Vehicles (Shanghai) Co., Ltd.	22%	17%	24%

Both Kandi Changxing and Kandi Shanghai are wholly-owned subsidiaries of the JV Company. The Company indirectly has a 50% economic interest in each of Kandi Changxing and Kandi Shanghai through its 50% ownership interest in the JV Company. For the three months ended March 31, 2015, the Company sold $17,583,134 and $9,846,904 of battery packs, body parts, motors, air conditioning units, and other auto parts to Kandi Changxing and Kandi Shanghai, respectively. The balance due from both Kandi Changxing and Kandi Shanghai were included in amount due from JV Company, net on the Company’s balance sheets. See Note 23.

The Service Company is a 19% investment of the JV Company, and the Company indirectly has a 9.5% economic interest in it. For the first quarter of 2015, the Company sold $13,966,780 EV parts to the Service Company. The balance due from it was $13,953,079.

(b) Suppliers

For the three-month period ended March 31, 2015, the Company’s material suppliers, each of whom accounted for more than 10% of the Company’s total purchases, were as follows:

	Purchases		Accounts Payable
	Three Months	Three Months	Three Months	Three Months
	Ended	Ended	Ended	Ended
	March, 31	March, 31	March, 31	March, 31
Major Suppliers	2015	2014	2015	2014
Zhejiang Tianneng Energy Technology Co., Ltd.	38%		0%
Zhejiang Xinneng Automotive Systems Co. Ltd.	12%		15%
Shandong Henyuan New Energy Tech Co., Ltd.	10%		18%
Dongguan Chuangming Battery Technology Co., Ltd.	10%		7%
Zhongju (Tianjin) New Energy Investment Co., Ltd.	9%	15%	14%	13%