Name it a coincidence, for those who like: on the same day Nikola announced the Badger is dead, Hindenburg Analysis printed one other accusation in opposition to an electrical automotive startup. This time, the goal is Kandi, the corporate that sells the most cost effective new automotive within the US after federal tax credit. In response to Hindenburg Analysis, Kandi has inflated its gross sales outcomes by promoting vehicles… to itself.
The brand new report states that the largest Kandi consumer – representing greater than 55 % of the “final twelve months (LTM) gross sales” – has the identical telephone quantity as a Kandi subsidiary and the identical govt working for each firms.
Hindenburg Analysis went after this enormous buyer and found the constructing through which it’s established has an indication indicating it’s a Kandi firm. In that very place, Kandi had one other firm that was allegedly utilized in a “separate faux gross sales scheme to gather illegitimate subsidies from the Chinese language authorities.” Stated faux scheme made Kandi be fined and punished.
In response to the forensic monetary analysis firm, that is only one instance of how Kandi could be falsifying “income utilizing faux gross sales to undisclosed associates.” Hindenburg Analysis has taken photos of the buildings in China to show its claims.
Whereas Chinese language authorities could be watching Kandi fairly shut, Hindenburg mentioned this isn’t what is occurring within the US. The corporate would have raised $160 million within the US in November alone simply by presenting itself as a pretty funding and taking “benefit of regulatory gaps enabling China-based firms to siphon money from US capital markets with impunity.”
The forensic monetary analysis firm’s report is much more detailed and presents all the reason why it has taken a brief place at Kandi. Although we have already evaluated the K27 and said how surprisingly solid it feels, Hindenburg Analysis feels that it doesn’t apply to the corporate desirous to promote it. We’ll watch that intently, as typical.
Supply: Hindenburg Research