CONSTRUCTION-IN-PROGRESS

3 Months Ended

Mar. 31, 2015

CONSTRUCTION-IN-PROGRESS [Text Block]

NOTE 15 - CONSTRUCTION-IN-PROGRESS

Construction-in-progress (“CIP”) relates to facility being built in Wanning City of Hainan Province.

Kandi Wanning facility

In April 2013, Kandi Electric Vehicles (Wanning) Co., Ltd. (“Kandi Wanning”) was formed in Wanning City of Hainan Province. The Company signed an agreement with Wanning city government and planned to invest a total of RMB1 billion, or $163,076,271, to develop a factory in Wanning with an annual production of 100,000 EVs. In 2013, the Company contracted with an unrelated third party equipment supplier, Nanjing Shangtong Auto Technologies Co., Ltd. (“Nanjing Shangtong”), to purchase equipment. The equipment was purchased and delivered according to the construction schedule and development of Kandi Wanning. As of March 31, 2015, a total amount of advances to suppliers of RMB353,000,000, or $57,565,924, made by Kandi Wanning to Nanjing Shangtong for equipment purchases was transferred to CIP. None of CIP was transferred to property, plant and equipment till March 31, 2015. The Company expects the purchase and installation of the equipment will be completed the end of 2015.

No depreciation is provided for CIP until such time when the assets are completed and placed into operation.

The construction project the Company was in the progress of completing is as follow:

		Total in CIP as of
Project Kandi		March 31, 2015		Estimated Cost to Complete		Estimated Total Cost	Estimated Completion Date
Wanning	$	58,753,641	$	104,322,630	$	163,076,271	Dec-15
facility
Total	$	58,753,641	$	104,322,630	$	163,076,271

As of March 31, 2015 and December 31, 2014, the Company had CIP amounting to $58,753,641 and $58,510,051, respectively.

No interest expenses has been capitalized for CIP at the end of March 31, 2015 and December 31, 2014, respectively.