SEC Info - Kandi Technologies Group, Inc. - ‘10-K’ for 3/25/13

SEC Info℠

Home

Help

Please Sign In

Kandi Technologies Group, Inc. – ‘10-K’ for 3/25/13 – ‘EX-101.INS’

On: Monday, 4/1/13, at 9:03am ET · For: 3/25/13 · Accession #: 1062993-13-1563 · File #: 1-33997

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 4/01/13  Kandi Technologies Group, Inc.    10-K        3/25/13  107:8.2M                                   Newsfile Corp/FA

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report -- form10k                            HTML    703K 
 2: EX-23.1     Consent of Experts or Counsel -- exhibit23-1        HTML     27K 
 3: EX-31.1     Certification -- §302 - SOA'02 -- exhibit31-1       HTML     30K 
 4: EX-31.2     Certification -- §302 - SOA'02 -- exhibit31-2       HTML     30K 
 5: EX-32.1     Certification -- §906 - SOA'02 -- exhibit32-1       HTML     27K 
70: R1          Document and Entity Information                     HTML     57K 
55: R2          Consolidated Balance Sheets                         HTML    193K 
66: R3          Consolidated Balance Sheets [Parenthetical]         HTML     46K 
74: R4          Consolidated Statements of Income and               HTML    115K 
                Comprehensive Income                                             
96: R5          Consolidated Statements of Changes in Stockholders  HTML     62K 
                Equity                                                           
57: R6          Consolidated Statements of Cash Flow                HTML    189K 
65: R7          Organization and Principal Activities               HTML     33K 
49: R8          Liquidity                                           HTML     30K 
39: R9          Basis of Presentation                               HTML     28K 
99: R10         Principles of Consolidation                         HTML     37K 
76: R11         Use of Estimates                                    HTML     28K 
75: R12         Summary of Significant Accounting Policies          HTML     66K 
82: R13         New Accounting Pronouncements                       HTML     35K 
83: R14         Concentrations                                      HTML     48K 
80: R15         Income Per Share                                    HTML     35K 
84: R16         Inventories                                         HTML     34K 
67: R17         Notes Receivable                                    HTML     40K 
71: R18         Land Use Rights                                     HTML     34K 
78: R19         Plant and Equipment                                 HTML     40K 
107: R20         Due To/From Related Parties                         HTML     34K  
92: R21         Short Term Bank Loans                               HTML     62K 
61: R22         Notes Payable                                       HTML     57K 
77: R23         Bond Payable                                        HTML     32K 
63: R24         Taxes                                               HTML     64K 
30: R25         Stock Options, Warrants and Convertible Notes       HTML     44K 
93: R26         Stock Award                                         HTML     29K 
103: R27         Intangible Assets                                   HTML     37K  
44: R28         Business Combination                                HTML     39K 
43: R29         Commitments and Contingencies                       HTML     47K 
47: R30         Subsequent Event                                    HTML     34K 
48: R31         Summary of Significant Accounting Policies          HTML    148K 
                (Policies)                                                       
50: R32         Summary of Significant Accounting Policies          HTML     52K 
                (Tables)                                                         
19: R33         Concentrations (Tables)                             HTML     46K 
90: R34         Income Per Share (Tables)                           HTML     31K 
59: R35         Inventories (Tables)                                HTML     32K 
62: R36         Notes Receivable (Tables)                           HTML     39K 
34: R37         Land Use Rights (Tables)                            HTML     34K 
106: R38         Plant and Equipment (Tables)                        HTML     38K  
12: R39         Due To/From Related Parties (Tables)                HTML     29K 
52: R40         Short Term Bank Loans (Tables)                      HTML     58K 
95: R41         Notes Payable (Tables)                              HTML     57K 
32: R42         Bond Payable (Tables)                               HTML     32K 
42: R43         Taxes (Tables)                                      HTML     59K 
46: R44         Stock Options, Warrants and Convertible Notes       HTML     38K 
                (Tables)                                                         
56: R45         Intangible Assets (Tables)                          HTML     37K 
18: R46         Business Combination (Tables)                       HTML     30K 
38: R47         Commitments and Contingencies (Tables)              HTML     32K 
14: R48         Organization and Principal Activities (Narrative)   HTML     38K 
                (Details)                                                        
94: R49         Liquidity (Narrative) (Details)                     HTML     33K 
31: R50         Principles of Consolidation (Narrative) (Details)   HTML     32K 
91: R51         Summary of Significant Accounting Policies          HTML     40K 
                (Narrative) (Details)                                            
35: R52         Income Per Share (Narrative) (Details)              HTML     28K 
53: R53         Land Use Rights (Narrative) (Details)               HTML     39K 
13: R54         Plant and Equipment (Narrative) (Details)           HTML     37K 
16: R55         Short Term Bank Loans (Narrative) (Details)         HTML     54K 
45: R56         Notes Payable (Narrative) (Details)                 HTML     33K 
23: R57         Bond Payable (Narrative) (Details)                  HTML     32K 
100: R58         Taxes (Narrative) (Details)                         HTML     53K  
58: R59         Stock Options, Warrants and Convertible Notes       HTML    141K 
                (Narrative) (Details)                                            
81: R60         Stock Award (Narrative) (Details)                   HTML     33K 
37: R61         Intangible Assets (Narrative) (Details)             HTML     30K 
40: R62         Business Combination (Narrative) (Details)          HTML     32K 
88: R63         Commitments and Contingencies (Narrative)           HTML     52K 
                (Details)                                                        
85: R64         Subsequent Event (Narrative) (Details)              HTML     51K 
60: R65         Schedule of Fair Value, by Balance Sheet Grouping   HTML     51K 
                (Details)                                                        
87: R66         Schedule of Cash and Cash Equivalents (Details)     HTML     34K 
36: R67         Schedule of Property and Equipment Estimated        HTML     37K 
                Useful Lives (Details)                                           
64: R68         Schedule of Average Foreign Currency Exchange       HTML     34K 
                Rates (Details)                                                  
102: R69         Schedule of Revenue and Accounts Receivable         HTML     70K  
                Percentage by Major Customers (Details)                          
15: R70         Schedule of Purchases and Accounts Payable          HTML     70K 
                Percentage by Major Suppliers (Details)                          
29: R71         Schedule of Earnings Per Share, Basic and Diluted   HTML     51K 
                (Details)                                                        
54: R72         Schedule of Inventories (Details)                   HTML     49K 
21: R73         Schedule of Notes Receivable (Details)              HTML     49K 
105: R74         Schedule of Detailed Unrelated Party Notes          HTML     33K  
                Receivable (Details)                                             
33: R75         Schedule of Land Use Rights (Details)               HTML     38K 
24: R76         Schedule of Land Use Rights Expected Amortization   HTML     41K 
                Expense (Details)                                                
28: R77         Schedule of Plant and Equipment (Details)           HTML     78K 
17: R78         Schedule of Related Party Transactions (Details)    HTML     34K 
20: R79         Schedule of Short-term Bank Loans (Details)         HTML    168K 
72: R80         Schedule of Notes Payable (Details)                 HTML    203K 
26: R81         Schedule of Restricted Cash Held As Collateral For  HTML     41K 
                Notes Payable (Details)                                          
101: R82         Schedule of Bond Payable (Details)                  HTML     36K  
51: R83         Schedule of Components of Income Tax Expense        HTML     38K 
                (Benefit) (Details)                                              
79: R84         Schedule of Expected Components of Income Tax       HTML     47K 
                Expense (Benefit) (Details)                                      
86: R85         Schedule of Deferred Tax Assets and Liabilities     HTML     81K 
                (Details)                                                        
25: R86         Summary of Income Tax Holiday (Details)             HTML     34K 
27: R87         Schedule of Share-based Compensation, Stock         HTML     48K 
                Options, Activity (Details)                                      
98: R88         Schedule of Disclosure of Share-based               HTML     49K 
                Compensation, Stock Option Outstanding Summary                   
                (Details)                                                        
22: R89         Schedule of Intangible Assets (Details)             HTML     44K 
73: R90         Schedule of Finite-Lived Intangible Assets, Future  HTML     41K 
                Amortization Expense (Details)                                   
69: R91         Schedule of Purchase Price Allocation (Details)     HTML     42K 
89: R92         Schedule of Guarantees For Bank Loans (Details)     HTML     36K 
68: R93         Schedule for Pledged Collateral For A Third Partys  HTML     30K 
                Bank Loans (Details)                                             
104: XML         IDEA XML File -- Filing Summary                      XML    162K  
41: EXCEL       IDEA Workbook of Financial Reports (.xls)            XLS    774K 
 6: EX-101.INS  XBRL Instance -- kndi-20121231                       XML    998K 
 8: EX-101.CAL  XBRL Calculations -- kndi-20121231_cal               XML    186K 
 9: EX-101.DEF  XBRL Definitions -- kndi-20121231_def                XML   1.53M 
10: EX-101.LAB  XBRL Labels -- kndi-20121231_lab                     XML   3.27M 
11: EX-101.PRE  XBRL Presentations -- kndi-20121231_pre              XML   1.70M 
 7: EX-101.SCH  XBRL Schema -- kndi-20121231                         XSD    593K 
97: ZIP         XBRL Zipped Folder -- 0001062993-13-001563-xbrl      Zip    242K

‘EX-101.INS’ — XBRL Instance — kndi-20121231

This Exhibit is an XBRL XML File.

<?xml version="1.0" standalone="yes" encoding="windows-1252"?>

<link:schemaRef xlink:type="simple" xlink:arcrole="http://www.xbrl.org/2003/linkbase" xlink:href="kndi-20121231.xsd"/>

<dei:CurrentFiscalYearEndDate contextRef="cx_01_January_2012_TO_31_December_2012"> --12-31 </dei:CurrentFiscalYearEndDate>

<dei:TradingSymbol contextRef="cx_01_January_2012_TO_31_December_2012"> kndi </dei:TradingSymbol>

<dei:EntityRegistrantName contextRef="cx_01_January_2012_TO_31_December_2012"> Kandi Technologies Group, Inc. </dei:EntityRegistrantName>

<dei:DocumentPeriodEndDate contextRef="cx_01_January_2012_TO_31_December_2012"> 2012-12-31 </dei:DocumentPeriodEndDate>

<dei:EntityCentralIndexKey contextRef="cx_01_January_2012_TO_31_December_2012"> 0001316517 </dei:EntityCentralIndexKey>

<dei:EntityVoluntaryFilers contextRef="cx_01_January_2012_TO_31_December_2012"> No </dei:EntityVoluntaryFilers>

<dei:EntityFilerCategory contextRef="cx_01_January_2012_TO_31_December_2012"> Smaller Reporting Company </dei:EntityFilerCategory>

<dei:EntityWellKnownSeasonedIssuer contextRef="cx_01_January_2012_TO_31_December_2012"> No </dei:EntityWellKnownSeasonedIssuer>

<dei:DocumentType contextRef="cx_01_January_2012_TO_31_December_2012"> 10-K </dei:DocumentType>

<dei:AmendmentFlag contextRef="cx_01_January_2012_TO_31_December_2012"> false </dei:AmendmentFlag>

<dei:EntityCommonStockSharesOutstanding contextRef="cx_22_March_2013" unitRef="shares" decimals="INF"> 32539867 </dei:EntityCommonStockSharesOutstanding>

<dei:EntityCurrentReportingStatus contextRef="cx_01_January_2012_TO_31_December_2012"> Yes </dei:EntityCurrentReportingStatus>

<dei:EntityPublicFloat contextRef="cx_29_June_2012" unitRef="usd" decimals="INF"> 53693762 </dei:EntityPublicFloat>

<dei:DocumentFiscalYearFocus contextRef="cx_01_January_2012_TO_31_December_2012"> 2012 </dei:DocumentFiscalYearFocus>

<dei:DocumentFiscalPeriodFocus contextRef="cx_01_January_2012_TO_31_December_2012"> FY </dei:DocumentFiscalPeriodFocus>

</entity>

</period>

</context>

</entity>

</period>

</context>

</entity>

</period>

</context>

</entity>

</period>

</context>

</entity>

</period>

</context>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:CommonStockMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:AdditionalPaidInCapitalMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:RetainedEarningsMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:AccumulatedOtherComprehensiveIncomeMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:CommonStockMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:AdditionalPaidInCapitalMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:AccumulatedOtherComprehensiveIncomeMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:RetainedEarningsMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:CommonStockMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:AdditionalPaidInCapitalMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:RetainedEarningsMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:AccumulatedOtherComprehensiveIncomeMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:CommonStockMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:AdditionalPaidInCapitalMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:AccumulatedOtherComprehensiveIncomeMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:RetainedEarningsMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:CommonStockMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:AdditionalPaidInCapitalMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:RetainedEarningsMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis"> us-gaap:AccumulatedOtherComprehensiveIncomeMember </xbrldi:explicitMember>

</segment>

</entity>

</period>

</context>

<measure> shares </measure>

</unit>

</unit>

</unitNumerator>

<measure> shares </measure>

</unitDenominator>

</divide>

</unit>

</unit>

</unit>

</unit>

</unit>

</unit>

<us-gaap:CashAndCashEquivalentsAtCarryingValue contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 12135096 </us-gaap:CashAndCashEquivalentsAtCarryingValue>

<us-gaap:CashAndCashEquivalentsAtCarryingValue contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 2294352 </us-gaap:CashAndCashEquivalentsAtCarryingValue>

<us-gaap:RestrictedCashAndCashEquivalentsAtCarryingValue contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 15835364 </us-gaap:RestrictedCashAndCashEquivalentsAtCarryingValue>

<us-gaap:RestrictedCashAndCashEquivalentsAtCarryingValue contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 6634989 </us-gaap:RestrictedCashAndCashEquivalentsAtCarryingValue>

<us-gaap:AccountsReceivableNetCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 33557534 </us-gaap:AccountsReceivableNetCurrent>

<us-gaap:AccountsReceivableNetCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 12932776 </us-gaap:AccountsReceivableNetCurrent>

<us-gaap:InventoryNet contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 7630715 </us-gaap:InventoryNet>

<us-gaap:InventoryNet contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 6674467 </us-gaap:InventoryNet>

<us-gaap:NotesAndLoansReceivableNetCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 9562429 </us-gaap:NotesAndLoansReceivableNetCurrent>

<us-gaap:NotesAndLoansReceivableNetCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 37879243 </us-gaap:NotesAndLoansReceivableNetCurrent>

<us-gaap:AccountsAndOtherReceivablesNetCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 501448 </us-gaap:AccountsAndOtherReceivablesNetCurrent>

<us-gaap:AccountsAndOtherReceivablesNetCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 2438917 </us-gaap:AccountsAndOtherReceivablesNetCurrent>

<us-gaap:PrepaidExpenseCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 563861 </us-gaap:PrepaidExpenseCurrent>

<us-gaap:PrepaidExpenseCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 185037 </us-gaap:PrepaidExpenseCurrent>

<us-gaap:DueFromEmployeesCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 40936 </us-gaap:DueFromEmployeesCurrent>

<us-gaap:DueFromEmployeesCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 79857 </us-gaap:DueFromEmployeesCurrent>

<us-gaap:AdvancesOnInventoryPurchases contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 4769825 </us-gaap:AdvancesOnInventoryPurchases>

<us-gaap:AdvancesOnInventoryPurchases contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 852638 </us-gaap:AdvancesOnInventoryPurchases>

<us-gaap:SecurityDeposit contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 24397967 </us-gaap:SecurityDeposit>

<us-gaap:SecurityDeposit contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 0 </us-gaap:SecurityDeposit>

<us-gaap:AssetsCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 108995175 </us-gaap:AssetsCurrent>

<us-gaap:AssetsCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 69972276 </us-gaap:AssetsCurrent>

<us-gaap:PropertyPlantAndEquipmentNet contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 35725740 </us-gaap:PropertyPlantAndEquipmentNet>

<us-gaap:PropertyPlantAndEquipmentNet contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 20981893 </us-gaap:PropertyPlantAndEquipmentNet>

<kndi:LandUseRightsNet contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 14337691 </kndi:LandUseRightsNet>

<kndi:LandUseRightsNet contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 10992769 </kndi:LandUseRightsNet>

<kndi:ConstructionInProgress contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ConstructionInProgress>

<kndi:ConstructionInProgress contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 10007601 </kndi:ConstructionInProgress>

<us-gaap:DeferredTaxAssetsNetNoncurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 695 </us-gaap:DeferredTaxAssetsNetNoncurrent>

<us-gaap:DeferredTaxAssetsNetNoncurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 89998 </us-gaap:DeferredTaxAssetsNetNoncurrent>

<us-gaap:InvestmentsInAffiliatesSubsidiariesAssociatesAndJointVentures contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 161507 </us-gaap:InvestmentsInAffiliatesSubsidiariesAssociatesAndJointVentures>

<us-gaap:InvestmentsInAffiliatesSubsidiariesAssociatesAndJointVentures contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 229213 </us-gaap:InvestmentsInAffiliatesSubsidiariesAssociatesAndJointVentures>

<us-gaap:Goodwill contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 322591 </us-gaap:Goodwill>

<us-gaap:Goodwill contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 0 </us-gaap:Goodwill>

<us-gaap:IntangibleAssetsNetExcludingGoodwill contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 741591 </us-gaap:IntangibleAssetsNetExcludingGoodwill>

<us-gaap:IntangibleAssetsNetExcludingGoodwill contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 0 </us-gaap:IntangibleAssetsNetExcludingGoodwill>

<us-gaap:AssetsNoncurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 51289815 </us-gaap:AssetsNoncurrent>

<us-gaap:AssetsNoncurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 42301474 </us-gaap:AssetsNoncurrent>

<us-gaap:Assets contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 160284990 </us-gaap:Assets>

<us-gaap:Assets contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 112273750 </us-gaap:Assets>

<us-gaap:AccountsPayableCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 8668478 </us-gaap:AccountsPayableCurrent>

<us-gaap:AccountsPayableCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 5061069 </us-gaap:AccountsPayableCurrent>

<us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 3092045 </us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent>

<us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 3137983 </us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent>

<us-gaap:ShortTermBorrowings contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 32615063 </us-gaap:ShortTermBorrowings>

<us-gaap:ShortTermBorrowings contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 36372492 </us-gaap:ShortTermBorrowings>

<us-gaap:CustomerDepositsCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 292389 </us-gaap:CustomerDepositsCurrent>

<us-gaap:CustomerDepositsCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 1025357 </us-gaap:CustomerDepositsCurrent>

<us-gaap:NotesPayableCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 25332088 </us-gaap:NotesPayableCurrent>

<us-gaap:NotesPayableCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 5847552 </us-gaap:NotesPayableCurrent>

<us-gaap:AccruedIncomeTaxesCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 680253 </us-gaap:AccruedIncomeTaxesCurrent>

<us-gaap:AccruedIncomeTaxesCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 153730 </us-gaap:AccruedIncomeTaxesCurrent>

<us-gaap:DueToEmployeesCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 7132 </us-gaap:DueToEmployeesCurrent>

<us-gaap:DueToEmployeesCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 9455 </us-gaap:DueToEmployeesCurrent>

<us-gaap:DueToOtherRelatedPartiesClassifiedCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 841251 </us-gaap:DueToOtherRelatedPartiesClassifiedCurrent>

<us-gaap:DueToOtherRelatedPartiesClassifiedCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 841251 </us-gaap:DueToOtherRelatedPartiesClassifiedCurrent>

<us-gaap:DeferredTaxLiabilitiesCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 55166 </us-gaap:DeferredTaxLiabilitiesCurrent>

<us-gaap:DeferredTaxLiabilitiesCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 56362 </us-gaap:DeferredTaxLiabilitiesCurrent>

<us-gaap:DerivativeLiabilitiesCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 1513013 </us-gaap:DerivativeLiabilitiesCurrent>

<us-gaap:DerivativeLiabilitiesCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 213 </us-gaap:DerivativeLiabilitiesCurrent>

<us-gaap:LiabilitiesCurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 73096878 </us-gaap:LiabilitiesCurrent>

<us-gaap:LiabilitiesCurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 52505464 </us-gaap:LiabilitiesCurrent>

<us-gaap:LongTermNotesPayable contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 0 </us-gaap:LongTermNotesPayable>

<us-gaap:LongTermNotesPayable contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 0 </us-gaap:LongTermNotesPayable>

<us-gaap:LongTermDebtNoncurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 12666044 </us-gaap:LongTermDebtNoncurrent>

<us-gaap:LongTermDebtNoncurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 0 </us-gaap:LongTermDebtNoncurrent>

<us-gaap:DerivativeLiabilitiesNoncurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 0 </us-gaap:DerivativeLiabilitiesNoncurrent>

<us-gaap:DerivativeLiabilitiesNoncurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 3919411 </us-gaap:DerivativeLiabilitiesNoncurrent>

<us-gaap:LiabilitiesNoncurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 12666044 </us-gaap:LiabilitiesNoncurrent>

<us-gaap:LiabilitiesNoncurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 3919411 </us-gaap:LiabilitiesNoncurrent>

<us-gaap:Liabilities contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 85762922 </us-gaap:Liabilities>

<us-gaap:Liabilities contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 56424875 </us-gaap:Liabilities>

<us-gaap:CommonStockValue contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 31697 </us-gaap:CommonStockValue>

<us-gaap:CommonStockValue contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 27446 </us-gaap:CommonStockValue>

<us-gaap:AdditionalPaidInCapitalCommonStock contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 43728218 </us-gaap:AdditionalPaidInCapitalCommonStock>

<us-gaap:AdditionalPaidInCapitalCommonStock contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 31533378 </us-gaap:AdditionalPaidInCapitalCommonStock>

<us-gaap:RetainedEarningsAccumulatedDeficit contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 25259809 </us-gaap:RetainedEarningsAccumulatedDeficit>

<us-gaap:RetainedEarningsAccumulatedDeficit contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 19210330 </us-gaap:RetainedEarningsAccumulatedDeficit>

<us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 5502344 </us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax>

<us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 5077721 </us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 74522068 </us-gaap:StockholdersEquity>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 55848875 </us-gaap:StockholdersEquity>

<us-gaap:LiabilitiesAndStockholdersEquity contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 160284990 </us-gaap:LiabilitiesAndStockholdersEquity>

<us-gaap:LiabilitiesAndStockholdersEquity contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 112273750 </us-gaap:LiabilitiesAndStockholdersEquity>

<kndi:ReserveForSlowMovingInventory contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 56248 </kndi:ReserveForSlowMovingInventory>

<kndi:ReserveForSlowMovingInventory contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 72487 </kndi:ReserveForSlowMovingInventory>

<kndi:DiscountOnNotesPayableCurent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:DiscountOnNotesPayableCurent>

<kndi:DiscountOnNotesPayableCurent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 71 </kndi:DiscountOnNotesPayableCurent>

<kndi:DiscountOnNotesPayableNoncurrent contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:DiscountOnNotesPayableNoncurrent>

<kndi:DiscountOnNotesPayableNoncurrent contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 0 </kndi:DiscountOnNotesPayableNoncurrent>

<us-gaap:CommonStockParOrStatedValuePerShare contextRef="cx_31_December_2012" unitRef="usd_shares" decimals="3"> 0.001 </us-gaap:CommonStockParOrStatedValuePerShare>

<us-gaap:CommonStockParOrStatedValuePerShare contextRef="cx_31_December_2011" unitRef="usd_shares" decimals="3"> 0.001 </us-gaap:CommonStockParOrStatedValuePerShare>

<us-gaap:CommonStockSharesAuthorized contextRef="cx_31_December_2012" unitRef="shares" decimals="INF"> 100000000 </us-gaap:CommonStockSharesAuthorized>

<us-gaap:CommonStockSharesAuthorized contextRef="cx_31_December_2011" unitRef="shares" decimals="INF"> 100000000 </us-gaap:CommonStockSharesAuthorized>

<us-gaap:CommonStockSharesIssued contextRef="cx_31_December_2012" unitRef="shares" decimals="INF"> 31696794 </us-gaap:CommonStockSharesIssued>

<us-gaap:CommonStockSharesIssued contextRef="cx_31_December_2011" unitRef="shares" decimals="INF"> 27445600 </us-gaap:CommonStockSharesIssued>

<us-gaap:CommonStockSharesOutstanding contextRef="cx_31_December_2012" unitRef="shares" decimals="INF"> 31696794 </us-gaap:CommonStockSharesOutstanding>

<us-gaap:CommonStockSharesOutstanding contextRef="cx_31_December_2011" unitRef="shares" decimals="INF"> 27445600 </us-gaap:CommonStockSharesOutstanding>

<kndi:RestrictedRetainedEarnings contextRef="cx_31_December_2012" unitRef="usd" decimals="0"> 2831005 </kndi:RestrictedRetainedEarnings>

<kndi:RestrictedRetainedEarnings contextRef="cx_31_December_2011" unitRef="usd" decimals="0"> 1940832 </kndi:RestrictedRetainedEarnings>

<us-gaap:SalesRevenueGoodsNet contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 64513670 </us-gaap:SalesRevenueGoodsNet>

<us-gaap:SalesRevenueGoodsNet contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 40177148 </us-gaap:SalesRevenueGoodsNet>

<us-gaap:CostOfGoodsSold contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 51620280 </us-gaap:CostOfGoodsSold>

<us-gaap:CostOfGoodsSold contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 30964173 </us-gaap:CostOfGoodsSold>

<us-gaap:GrossProfit contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 12893390 </us-gaap:GrossProfit>

<us-gaap:GrossProfit contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 9212975 </us-gaap:GrossProfit>

<us-gaap:ResearchAndDevelopmentExpense contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2877283 </us-gaap:ResearchAndDevelopmentExpense>

<us-gaap:ResearchAndDevelopmentExpense contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 2304373 </us-gaap:ResearchAndDevelopmentExpense>

<us-gaap:SellingAndMarketingExpense contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 455983 </us-gaap:SellingAndMarketingExpense>

<us-gaap:SellingAndMarketingExpense contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 414255 </us-gaap:SellingAndMarketingExpense>

<us-gaap:GeneralAndAdministrativeExpense contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4250832 </us-gaap:GeneralAndAdministrativeExpense>

<us-gaap:GeneralAndAdministrativeExpense contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 3458388 </us-gaap:GeneralAndAdministrativeExpense>

<us-gaap:OperatingIncomeLoss contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 5309292 </us-gaap:OperatingIncomeLoss>

<us-gaap:OperatingIncomeLoss contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 3035959 </us-gaap:OperatingIncomeLoss>

<us-gaap:InterestIncomeOperating contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2658104 </us-gaap:InterestIncomeOperating>

<us-gaap:InterestIncomeOperating contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 2200678 </us-gaap:InterestIncomeOperating>

<us-gaap:InterestExpense contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2775891 </us-gaap:InterestExpense>

<us-gaap:InterestExpense contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 1945260 </us-gaap:InterestExpense>

<kndi:GovernmentGrants contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 132139 </kndi:GovernmentGrants>

<kndi:GovernmentGrants contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 298072 </kndi:GovernmentGrants>

<us-gaap:MarketableSecuritiesGainLossExcludingOtherThanTemporaryImpairments contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </us-gaap:MarketableSecuritiesGainLossExcludingOtherThanTemporaryImpairments>

<us-gaap:MarketableSecuritiesGainLossExcludingOtherThanTemporaryImpairments contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 9653 </us-gaap:MarketableSecuritiesGainLossExcludingOtherThanTemporaryImpairments>

<us-gaap:OtherNonoperatingIncomeExpense contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 332936 </us-gaap:OtherNonoperatingIncomeExpense>

<us-gaap:OtherNonoperatingIncomeExpense contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 717495 </us-gaap:OtherNonoperatingIncomeExpense>

<us-gaap:GainLossOnDerivativeInstrumentsNetPretax contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1986063 </us-gaap:GainLossOnDerivativeInstrumentsNetPretax>

<us-gaap:GainLossOnDerivativeInstrumentsNetPretax contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 5401929 </us-gaap:GainLossOnDerivativeInstrumentsNetPretax>

<us-gaap:IncomeLossFromEquityMethodInvestments contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -69429 </us-gaap:IncomeLossFromEquityMethodInvestments>

<us-gaap:IncomeLossFromEquityMethodInvestments contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> -52696 </us-gaap:IncomeLossFromEquityMethodInvestments>

<us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 7573214 </us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest>

<us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 9665830 </us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest>

<us-gaap:IncomeTaxExpenseBenefit contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1523735 </us-gaap:IncomeTaxExpenseBenefit>

<us-gaap:IncomeTaxExpenseBenefit contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 551060 </us-gaap:IncomeTaxExpenseBenefit>

<us-gaap:NetIncomeLoss contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 6049479 </us-gaap:NetIncomeLoss>

<us-gaap:NetIncomeLoss contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 9114770 </us-gaap:NetIncomeLoss>

<us-gaap:OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 424623 </us-gaap:OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent>

<us-gaap:OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 1816639 </us-gaap:OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent>

<us-gaap:ComprehensiveIncomeNetOfTax contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 6474102 </us-gaap:ComprehensiveIncomeNetOfTax>

<us-gaap:ComprehensiveIncomeNetOfTax contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 10931409 </us-gaap:ComprehensiveIncomeNetOfTax>

<us-gaap:WeightedAverageNumberOfSharesOutstandingBasic contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="INF"> 29439328 </us-gaap:WeightedAverageNumberOfSharesOutstandingBasic>

<us-gaap:WeightedAverageNumberOfSharesOutstandingBasic contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="shares" decimals="INF"> 27438725 </us-gaap:WeightedAverageNumberOfSharesOutstandingBasic>

<us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="INF"> 29677325 </us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding>

<us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="shares" decimals="INF"> 28735748 </us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding>

<us-gaap:EarningsPerShareBasic contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="2"> 0.21 </us-gaap:EarningsPerShareBasic>

<us-gaap:EarningsPerShareBasic contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd_shares" decimals="2"> 0.33 </us-gaap:EarningsPerShareBasic>

<us-gaap:EarningsPerShareDiluted contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="2"> 0.20 </us-gaap:EarningsPerShareDiluted>

<us-gaap:EarningsPerShareDiluted contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd_shares" decimals="2"> 0.32 </us-gaap:EarningsPerShareDiluted>

<us-gaap:SharesIssued contextRef="cx_31_December_2010_StatementEquityComponentsAxis-CommonStockMember" unitRef="shares" decimals="INF"> 27396101 </us-gaap:SharesIssued>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2010_StatementEquityComponentsAxis-CommonStockMember" unitRef="usd" decimals="0"> 27396 </us-gaap:StockholdersEquity>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2010_StatementEquityComponentsAxis-AdditionalPaidInCapitalMember" unitRef="usd" decimals="0"> 31090100 </us-gaap:StockholdersEquity>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2010_StatementEquityComponentsAxis-RetainedEarningsMember" unitRef="usd" decimals="0"> 10095560 </us-gaap:StockholdersEquity>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2010_StatementEquityComponentsAxis-AccumulatedOtherComprehensiveIncomeMember" unitRef="usd" decimals="0"> 3261082 </us-gaap:StockholdersEquity>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2010" unitRef="usd" decimals="0"> 44474138 </us-gaap:StockholdersEquity>

<kndi:StockIssuanceWarrantAndStockOptionExerciseShares contextRef="cx_01_January_2011_TO_31_December_2011_StatementEquityComponentsAxis-CommonStockMember" unitRef="shares" decimals="INF"> 49499 </kndi:StockIssuanceWarrantAndStockOptionExerciseShares>

<kndi:StockIssuanceWarrantAndStockOptionExercise contextRef="cx_01_January_2011_TO_31_December_2011_StatementEquityComponentsAxis-CommonStockMember" unitRef="usd" decimals="0"> 50 </kndi:StockIssuanceWarrantAndStockOptionExercise>

<kndi:StockIssuanceWarrantAndStockOptionExercise contextRef="cx_01_January_2011_TO_31_December_2011_StatementEquityComponentsAxis-AdditionalPaidInCapitalMember" unitRef="usd" decimals="0"> 65495 </kndi:StockIssuanceWarrantAndStockOptionExercise>

<kndi:StockIssuanceWarrantAndStockOptionExercise contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 65545 </kndi:StockIssuanceWarrantAndStockOptionExercise>

<us-gaap:AdjustmentsToAdditionalPaidInCapitalOther contextRef="cx_01_January_2011_TO_31_December_2011_StatementEquityComponentsAxis-AdditionalPaidInCapitalMember" unitRef="usd" decimals="0"> 125151 </us-gaap:AdjustmentsToAdditionalPaidInCapitalOther>

<us-gaap:AdjustmentsToAdditionalPaidInCapitalOther contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 125151 </us-gaap:AdjustmentsToAdditionalPaidInCapitalOther>

<us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised contextRef="cx_01_January_2011_TO_31_December_2011_StatementEquityComponentsAxis-AdditionalPaidInCapitalMember" unitRef="usd" decimals="0"> 252632 </us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised>

<us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 252632 </us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised>

<us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax contextRef="cx_01_January_2011_TO_31_December_2011_StatementEquityComponentsAxis-AccumulatedOtherComprehensiveIncomeMember" unitRef="usd" decimals="0"> 1816639 </us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax>

<us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 1816639 </us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax>

<us-gaap:NetIncomeLoss contextRef="cx_01_January_2011_TO_31_December_2011_StatementEquityComponentsAxis-RetainedEarningsMember" unitRef="usd" decimals="0"> 9114770 </us-gaap:NetIncomeLoss>

<us-gaap:SharesIssued contextRef="cx_31_December_2011_StatementEquityComponentsAxis-CommonStockMember" unitRef="shares" decimals="INF"> 27445600 </us-gaap:SharesIssued>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2011_StatementEquityComponentsAxis-CommonStockMember" unitRef="usd" decimals="0"> 27446 </us-gaap:StockholdersEquity>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2011_StatementEquityComponentsAxis-AdditionalPaidInCapitalMember" unitRef="usd" decimals="0"> 31533378 </us-gaap:StockholdersEquity>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2011_StatementEquityComponentsAxis-RetainedEarningsMember" unitRef="usd" decimals="0"> 19210330 </us-gaap:StockholdersEquity>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2011_StatementEquityComponentsAxis-AccumulatedOtherComprehensiveIncomeMember" unitRef="usd" decimals="0"> 5077721 </us-gaap:StockholdersEquity>

<kndi:StockIssuanceWarrantAndStockOptionExerciseShares contextRef="cx_01_January_2012_TO_31_December_2012_StatementEquityComponentsAxis-CommonStockMember" unitRef="shares" decimals="INF"> 4251194 </kndi:StockIssuanceWarrantAndStockOptionExerciseShares>

<kndi:StockIssuanceWarrantAndStockOptionExercise contextRef="cx_01_January_2012_TO_31_December_2012_StatementEquityComponentsAxis-CommonStockMember" unitRef="usd" decimals="0"> 4251 </kndi:StockIssuanceWarrantAndStockOptionExercise>

<kndi:StockIssuanceWarrantAndStockOptionExercise contextRef="cx_01_January_2012_TO_31_December_2012_StatementEquityComponentsAxis-AdditionalPaidInCapitalMember" unitRef="usd" decimals="0"> 11543320 </kndi:StockIssuanceWarrantAndStockOptionExercise>

<kndi:StockIssuanceWarrantAndStockOptionExercise contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 11547571 </kndi:StockIssuanceWarrantAndStockOptionExercise>

<us-gaap:AdjustmentsToAdditionalPaidInCapitalOther contextRef="cx_01_January_2012_TO_31_December_2012_StatementEquityComponentsAxis-AdditionalPaidInCapitalMember" unitRef="usd" decimals="0"> -78689 </us-gaap:AdjustmentsToAdditionalPaidInCapitalOther>

<us-gaap:AdjustmentsToAdditionalPaidInCapitalOther contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -78689 </us-gaap:AdjustmentsToAdditionalPaidInCapitalOther>

<us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised contextRef="cx_01_January_2012_TO_31_December_2012_StatementEquityComponentsAxis-AdditionalPaidInCapitalMember" unitRef="usd" decimals="0"> 19053 </us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised>

<us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 19053 </us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised>

<kndi:AdjustmentsToAdditionalPaidInCapitalAcquisitionOfScrou contextRef="cx_01_January_2012_TO_31_December_2012_StatementEquityComponentsAxis-AdditionalPaidInCapitalMember" unitRef="usd" decimals="0"> 711156 </kndi:AdjustmentsToAdditionalPaidInCapitalAcquisitionOfScrou>

<kndi:AdjustmentsToAdditionalPaidInCapitalAcquisitionOfScrou contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 711156 </kndi:AdjustmentsToAdditionalPaidInCapitalAcquisitionOfScrou>

<us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax contextRef="cx_01_January_2012_TO_31_December_2012_StatementEquityComponentsAxis-AccumulatedOtherComprehensiveIncomeMember" unitRef="usd" decimals="0"> 424623 </us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax>

<us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 424623 </us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax>

<us-gaap:NetIncomeLoss contextRef="cx_01_January_2012_TO_31_December_2012_StatementEquityComponentsAxis-RetainedEarningsMember" unitRef="usd" decimals="0"> 6049479 </us-gaap:NetIncomeLoss>

<us-gaap:SharesIssued contextRef="cx_31_December_2012_StatementEquityComponentsAxis-CommonStockMember" unitRef="shares" decimals="INF"> 31696794 </us-gaap:SharesIssued>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2012_StatementEquityComponentsAxis-CommonStockMember" unitRef="usd" decimals="0"> 31697 </us-gaap:StockholdersEquity>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2012_StatementEquityComponentsAxis-AdditionalPaidInCapitalMember" unitRef="usd" decimals="0"> 43728218 </us-gaap:StockholdersEquity>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2012_StatementEquityComponentsAxis-RetainedEarningsMember" unitRef="usd" decimals="0"> 25259809 </us-gaap:StockholdersEquity>

<us-gaap:StockholdersEquity contextRef="cx_31_December_2012_StatementEquityComponentsAxis-AccumulatedOtherComprehensiveIncomeMember" unitRef="usd" decimals="0"> 5502344 </us-gaap:StockholdersEquity>

<us-gaap:DepreciationDepletionAndAmortization contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4978626 </us-gaap:DepreciationDepletionAndAmortization>

<us-gaap:DepreciationDepletionAndAmortization contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 4696848 </us-gaap:DepreciationDepletionAndAmortization>

<us-gaap:AssetImpairmentCharges contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 465199 </us-gaap:AssetImpairmentCharges>

<us-gaap:AssetImpairmentCharges contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 0 </us-gaap:AssetImpairmentCharges>

<us-gaap:DeferredIncomeTaxExpenseBenefit contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 92521 </us-gaap:DeferredIncomeTaxExpenseBenefit>

<us-gaap:DeferredIncomeTaxExpenseBenefit contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 207327 </us-gaap:DeferredIncomeTaxExpenseBenefit>

<us-gaap:DerivativeGainLossOnDerivativeNet contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1986063 </us-gaap:DerivativeGainLossOnDerivativeNet>

<us-gaap:DerivativeGainLossOnDerivativeNet contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 5401929 </us-gaap:DerivativeGainLossOnDerivativeNet>

<kndi:NotesAndWarrantIssuancePayments contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:NotesAndWarrantIssuancePayments>

<kndi:NotesAndWarrantIssuancePayments contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 0 </kndi:NotesAndWarrantIssuancePayments>

<us-gaap:ShareBasedCompensation contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 19053 </us-gaap:ShareBasedCompensation>

<us-gaap:ShareBasedCompensation contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 252632 </us-gaap:ShareBasedCompensation>

<us-gaap:IncreaseDecreaseInAccountsReceivable contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 20513099 </us-gaap:IncreaseDecreaseInAccountsReceivable>

<us-gaap:IncreaseDecreaseInAccountsReceivable contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> -4647184 </us-gaap:IncreaseDecreaseInAccountsReceivable>

<us-gaap:IncreaseDecreaseInInventories contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 904355 </us-gaap:IncreaseDecreaseInInventories>

<us-gaap:IncreaseDecreaseInInventories contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 550024 </us-gaap:IncreaseDecreaseInInventories>

<us-gaap:IncreaseDecreaseInOtherReceivables contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -1955055 </us-gaap:IncreaseDecreaseInOtherReceivables>

<us-gaap:IncreaseDecreaseInOtherReceivables contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 1566603 </us-gaap:IncreaseDecreaseInOtherReceivables>

<us-gaap:IncreaseDecreaseInDueFromEmployeeCurrent contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -37117 </us-gaap:IncreaseDecreaseInDueFromEmployeeCurrent>

<us-gaap:IncreaseDecreaseInDueFromEmployeeCurrent contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 45096 </us-gaap:IncreaseDecreaseInDueFromEmployeeCurrent>

<us-gaap:IncreaseDecreaseInPrepaidExpense contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4285489 </us-gaap:IncreaseDecreaseInPrepaidExpense>

<us-gaap:IncreaseDecreaseInPrepaidExpense contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 730321 </us-gaap:IncreaseDecreaseInPrepaidExpense>

<us-gaap:IncreaseDecreaseInTradingSecurities contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </us-gaap:IncreaseDecreaseInTradingSecurities>

<us-gaap:IncreaseDecreaseInTradingSecurities contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> -307098 </us-gaap:IncreaseDecreaseInTradingSecurities>

<us-gaap:IncreaseDecreaseInAccountsPayable contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3566354 </us-gaap:IncreaseDecreaseInAccountsPayable>

<us-gaap:IncreaseDecreaseInAccountsPayable contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> -1614496 </us-gaap:IncreaseDecreaseInAccountsPayable>

<us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -50333 </us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities>

<us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 2326656 </us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities>

<us-gaap:IncreaseDecreaseInCustomerDeposits contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -740419 </us-gaap:IncreaseDecreaseInCustomerDeposits>

<us-gaap:IncreaseDecreaseInCustomerDeposits contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 924241 </us-gaap:IncreaseDecreaseInCustomerDeposits>

<us-gaap:IncreaseDecreaseInAccruedIncomeTaxesPayable contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 525030 </us-gaap:IncreaseDecreaseInAccruedIncomeTaxesPayable>

<us-gaap:IncreaseDecreaseInAccruedIncomeTaxesPayable contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 21087 </us-gaap:IncreaseDecreaseInAccruedIncomeTaxesPayable>

<us-gaap:NetCashProvidedByUsedInOperatingActivities contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -10721895 </us-gaap:NetCashProvidedByUsedInOperatingActivities>

<us-gaap:NetCashProvidedByUsedInOperatingActivities contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 12642070 </us-gaap:NetCashProvidedByUsedInOperatingActivities>

<us-gaap:PaymentsToAcquirePropertyPlantAndEquipment contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 19150867 </us-gaap:PaymentsToAcquirePropertyPlantAndEquipment>

<us-gaap:PaymentsToAcquirePropertyPlantAndEquipment contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 646143 </us-gaap:PaymentsToAcquirePropertyPlantAndEquipment>

<us-gaap:PaymentsForConstructionInProcess contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -10078637 </us-gaap:PaymentsForConstructionInProcess>

<us-gaap:PaymentsForConstructionInProcess contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 9839388 </us-gaap:PaymentsForConstructionInProcess>

<us-gaap:PaymentsForDeposits contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 24383529 </us-gaap:PaymentsForDeposits>

<us-gaap:PaymentsForDeposits contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 0 </us-gaap:PaymentsForDeposits>

<us-gaap:PaymentsToAcquireNotesReceivable contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1011821 </us-gaap:PaymentsToAcquireNotesReceivable>

<us-gaap:PaymentsToAcquireNotesReceivable contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 22992866 </us-gaap:PaymentsToAcquireNotesReceivable>

<us-gaap:ProceedsFromCollectionOfNotesReceivable contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 29603171 </us-gaap:ProceedsFromCollectionOfNotesReceivable>

<us-gaap:ProceedsFromCollectionOfNotesReceivable contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 11147503 </us-gaap:ProceedsFromCollectionOfNotesReceivable>

<us-gaap:CashAcquiredFromAcquisition contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 112551 </us-gaap:CashAcquiredFromAcquisition>

<us-gaap:CashAcquiredFromAcquisition contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 0 </us-gaap:CashAcquiredFromAcquisition>

<us-gaap:NetCashProvidedByUsedInInvestingActivities contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -4751858 </us-gaap:NetCashProvidedByUsedInInvestingActivities>

<us-gaap:NetCashProvidedByUsedInInvestingActivities contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> -22330894 </us-gaap:NetCashProvidedByUsedInInvestingActivities>

<us-gaap:ProceedsFromRepaymentsOfRestrictedCashFinancingActivities contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -9143907 </us-gaap:ProceedsFromRepaymentsOfRestrictedCashFinancingActivities>

<us-gaap:ProceedsFromRepaymentsOfRestrictedCashFinancingActivities contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 11246288 </us-gaap:ProceedsFromRepaymentsOfRestrictedCashFinancingActivities>

<us-gaap:ProceedsFromBankDebt contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 41504215 </us-gaap:ProceedsFromBankDebt>

<us-gaap:ProceedsFromBankDebt contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 48891560 </us-gaap:ProceedsFromBankDebt>

<us-gaap:RepaymentsOfBankDebt contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 45539128 </us-gaap:RepaymentsOfBankDebt>

<us-gaap:RepaymentsOfBankDebt contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 42171867 </us-gaap:RepaymentsOfBankDebt>

<us-gaap:ProceedsFromNotesPayable contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 40491531 </us-gaap:ProceedsFromNotesPayable>

<us-gaap:ProceedsFromNotesPayable contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 35562160 </us-gaap:ProceedsFromNotesPayable>

<us-gaap:RepaymentsOfNotesPayable contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 21063559 </us-gaap:RepaymentsOfNotesPayable>

<us-gaap:RepaymentsOfNotesPayable contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 49260448 </us-gaap:RepaymentsOfNotesPayable>

<us-gaap:ProceedsFromIssuanceOfLongTermDebt contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 12658548 </us-gaap:ProceedsFromIssuanceOfLongTermDebt>

<us-gaap:ProceedsFromIssuanceOfLongTermDebt contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 0 </us-gaap:ProceedsFromIssuanceOfLongTermDebt>

<us-gaap:ProceedsFromStockOptionsExercised contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1258231 </us-gaap:ProceedsFromStockOptionsExercised>

<us-gaap:ProceedsFromStockOptionsExercised contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 65544 </us-gaap:ProceedsFromStockOptionsExercised>

<us-gaap:ProceedsFromWarrantExercises contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1672739 </us-gaap:ProceedsFromWarrantExercises>

<us-gaap:ProceedsFromWarrantExercises contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 0 </us-gaap:ProceedsFromWarrantExercises>

<us-gaap:ProceedsFromIssuanceOfCommonStock contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3784149 </us-gaap:ProceedsFromIssuanceOfCommonStock>

<us-gaap:ProceedsFromIssuanceOfCommonStock contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 0 </us-gaap:ProceedsFromIssuanceOfCommonStock>

<us-gaap:NetCashProvidedByUsedInFinancingActivities contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 25622819 </us-gaap:NetCashProvidedByUsedInFinancingActivities>

<us-gaap:NetCashProvidedByUsedInFinancingActivities contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 4333237 </us-gaap:NetCashProvidedByUsedInFinancingActivities>

<us-gaap:CashAndCashEquivalentsPeriodIncreaseDecrease contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 10149066 </us-gaap:CashAndCashEquivalentsPeriodIncreaseDecrease>

<us-gaap:CashAndCashEquivalentsPeriodIncreaseDecrease contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> -5355587 </us-gaap:CashAndCashEquivalentsPeriodIncreaseDecrease>

<us-gaap:EffectOfExchangeRateOnCashAndCashEquivalents contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -308322 </us-gaap:EffectOfExchangeRateOnCashAndCashEquivalents>

<us-gaap:EffectOfExchangeRateOnCashAndCashEquivalents contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> -104227 </us-gaap:EffectOfExchangeRateOnCashAndCashEquivalents>

<us-gaap:CashAndCashEquivalentsAtCarryingValue contextRef="cx_31_December_2010" unitRef="usd" decimals="0"> 7754166 </us-gaap:CashAndCashEquivalentsAtCarryingValue>

<us-gaap:IncomeTaxesPaid contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 998706 </us-gaap:IncomeTaxesPaid>

<us-gaap:IncomeTaxesPaid contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 529973 </us-gaap:IncomeTaxesPaid>

<us-gaap:InterestPaid contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2570691 </us-gaap:InterestPaid>

<us-gaap:InterestPaid contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 2509808 </us-gaap:InterestPaid>

<us-gaap:StockIssued1 contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 8616416 </us-gaap:StockIssued1>

<us-gaap:StockIssued1 contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 0 </us-gaap:StockIssued1>

<kndi:OrganizationAndPrincipalActivitiesDisclosureTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES The Company was incorporated under the laws of the State of Delaware on March 31, 2004. On August 13, 2007, the Company changed its name from Stone Mountain Resources, Inc. to Kandi Technologies, Corp. On December 21, 2012, the Company changed its name to Kandi Technologies Group, Inc. On June 29, 2007, the Company (Stone Mountain Resources, Inc.) executed an exchange agreement to acquire 100% of Continental Development Limited, a Hong Kong corporation (“Continental”) and its wholly owned subsidiary Zhejiang Kandi Vehicles Co., Ltd. (“Kandi Vehicles”). Continental became a wholly owned subsidiary of Stone Mountain. Thereafter, the business of the Company was that of Continental’s wholly owned subsidiary, Kandi Vehicles. On December 31, 2010, Jinhua Three Parties New Energy Vehicles Service Co., ltd. (“Jinhua Service”) was formed by a joint venture among the State Grid Power Corporation, Tianneng Power International, Inc. and Kandi Vehicles. The joint venture established the first Chinese electric super-mini automobile battery replacement service provider. The Company owns 30% of Jinhua Service. In the first fiscal quarter of 2011, Jinhua Kandi New Energy Vehicles Co., Ltd. (“Kandi New Energy”) was incorporated by Kandi Vehicles and Mr. Xiaoming Hu, the Chairman and CEO of the Company. On April 25 2012, The Company completed its acquisition of KO NGA Investment Limited and its subsidiaries, K S Asia Limited Group Limited, Yongkang K S Electric Limited and Yongkang Scrou Electric Co. (“Yongkang Scrou”), with consideration of 2,354,212 shares of the Company’s common stock. Yongkang Scrou manufactures various auto generators. On June 29, 2012, in connection with the completion of the Company’s internal reorganization, Yongkang Scrou became a wholly owned subsidiary of the Company. The Company’s organization chart as of this reporting date is as follows: Kandi Vehicles has a 50% ownership interest and controls the Board of Directors in Kandi New Energy. Under Share Escrow and Trust Agreement, Loan Agreement, Contractor Agreement, between Kandi Vehicles and the other equity owner, Kandi Vehicles is entitled to 100% of the economic benefits, voting rights and residual interests ( 100% profits and loss absorption rate) in Kandi New Energy. The primary operations of the Company are designing, developing, manufacturing, and commercializing electrical vehicles (“EVs”), all-terrain vehicles (“ATVs”), go-karts, and specialized automobiles related products for the PRC and global markets.

</kndi:OrganizationAndPrincipalActivitiesDisclosureTextBlock>

<kndi:OrganizationAndPrincipalActivitiesZeroOneThreeOneZeroOneSevenFourNineTTqyTFivexlxTKd contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 1.00 </kndi:OrganizationAndPrincipalActivitiesZeroOneThreeOneZeroOneSevenFourNineTTqyTFivexlxTKd>

<kndi:OrganizationAndPrincipalActivitiesZeroOneThreeOneZeroOneSevenFourNinevtFHmDlwTwoZbP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.30 </kndi:OrganizationAndPrincipalActivitiesZeroOneThreeOneZeroOneSevenFourNinevtFHmDlwTwoZbP>

<kndi:OrganizationAndPrincipalActivitiesZeroOneThreeOneZeroOneSevenFourNinetBpHkVpbKZNinez contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 2354212 </kndi:OrganizationAndPrincipalActivitiesZeroOneThreeOneZeroOneSevenFourNinetBpHkVpbKZNinez>

<kndi:OrganizationAndPrincipalActivitiesZeroOneThreeOneZeroOneSevenFourNineQCOneZGbsMLVlm contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.50 </kndi:OrganizationAndPrincipalActivitiesZeroOneThreeOneZeroOneSevenFourNineQCOneZGbsMLVlm>

<kndi:OrganizationAndPrincipalActivitiesZeroOneThreeOneZeroOneSevenFourNineGFivecThreeFivepNinevcThreeVSeven contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 1.00 </kndi:OrganizationAndPrincipalActivitiesZeroOneThreeOneZeroOneSevenFourNineGFivecThreeFivepNinevcThreeVSeven>

<kndi:OrganizationAndPrincipalActivitiesZeroOneThreeOneZeroOneSevenFourNinegsLwFivekNFMPTwok contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 1.00 </kndi:OrganizationAndPrincipalActivitiesZeroOneThreeOneZeroOneSevenFourNinegsLwFivekNFMPTwok>

<kndi:LiquidityTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 2 - LIQUIDITY The Company had a working capital surplus of $35,898,297 at December 31, 2012, increase from a working capital surplus of $17,466,812 as of December 31, 2011. As of December 31, 2012, the Company has credit lines from commercial banks for $53,830,687, of which $29,765,203 was used at December 31. The Company believes that its cash flows generated internally may not be sufficient to sustain operations and repay short term bank loans for the next twelve months. However, the Company believes its access to existing financing sources and established relationships with PRC banks will enable it to meet its obligations and fund its ongoing operations. The Company has historically financed itself through short-term commercial bank loans from PRC banks. The term of these loans is typically for one year, and upon the payment of all outstanding principal and interest in a respective loan, the banks have typically rolled over the loans for additional one-year terms, with adjustments made to the interest rate to reflect prevailing market rates. The Company believes this situation has not changed and the short-term bank loan will be available on normal trade terms if needed.

</kndi:LiquidityTextBlock>

<kndi:LiquidityZeroOneThreeOneZeroOneSevenFourNineDPgJEightdSevenEightMlNineR contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 35898297 </kndi:LiquidityZeroOneThreeOneZeroOneSevenFourNineDPgJEightdSevenEightMlNineR>

<kndi:LiquidityZeroOneThreeOneZeroOneSevenFourNineLJSixRNineKyBTlxq contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 17466812 </kndi:LiquidityZeroOneThreeOneZeroOneSevenFourNineLJSixRNineKyBTlxq>

<kndi:LiquidityZeroOneThreeOneZeroOneSevenFourNineFivePyFfQCsyprP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 53830687 </kndi:LiquidityZeroOneThreeOneZeroOneSevenFourNineFivePyFfQCsyprP>

<kndi:LiquidityZeroOneThreeOneZeroOneSevenFourNineGhbvkrVFsDcSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 29765203 </kndi:LiquidityZeroOneThreeOneZeroOneSevenFourNineGhbvkrVFsDcSix>

<us-gaap:BasisOfAccounting contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 3 - BASIS OF PRESENTATION The Company maintains its general ledger and journals with the accrual method accounting for financial reporting purposes. The financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of financial statements.

</us-gaap:BasisOfAccounting>

<us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 4 – PRINCIPLES OF CONSOLIDATION The consolidated financial statements reflect the accounts of the Company and its ownership interest in following subsidiaries: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%">(i)</td> <td> Continental Development, Ltd. (“Continental”) (a wholly-owned subsidiary of the Company) </td> </tr> <tr> <td valign="top" width="5%">(ii)</td> <td> Zhejiang Kandi Vehicles Co., Ltd. (“Kandi Vehicles”) (a wholly-owned subsidiary of Continental) </td> </tr> <tr> <td valign="top" width="5%">(iii)</td> <td> Jinhua Three Parties New Energy Vehicles Service Co., Ltd. (“Jinhua Service”) (a 30% owned subsidiary of Kandi Vehicles) </td> </tr> <tr> <td valign="top" width="5%">(iv)</td> <td> Jinhua Kandi New Energy Vehicles Co., Ltd. (“Kandi New Energy”) (a 50% owned subsidiary of Kandi Vehicles with 100% profits and loss absorption due to contractual agreement) </td> </tr> <tr> <td valign="top" width="5%">(v)</td> <td> Yongkang Scrou Electric. Co., Ltd (“Yongkang Scrou”) (a wholly-owned subsidiary of Kandi Vehicles) </td> </tr> </table> Inter-company accounts and transactions have been eliminated in consolidation.

</us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock>

<kndi:PrinciplesOfConsolidationZeroOneThreeOneZeroOneSevenFourNineLSevenqSPWVbTMzV contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.30 </kndi:PrinciplesOfConsolidationZeroOneThreeOneZeroOneSevenFourNineLSevenqSPWVbTMzV>

<kndi:PrinciplesOfConsolidationZeroOneThreeOneZeroOneSevenFourNinekXSevenrRFJZerowPnl contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.50 </kndi:PrinciplesOfConsolidationZeroOneThreeOneZeroOneSevenFourNinekXSevenrRFJZerowPnl>

<kndi:PrinciplesOfConsolidationZeroOneThreeOneZeroOneSevenFourNineKQSixFiveFThreelNineFiveyRP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 1.00 </kndi:PrinciplesOfConsolidationZeroOneThreeOneZeroOneSevenFourNineKQSixFiveFThreelNineFiveyRP>

<kndi:UseOfEstimatesTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 5 – USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Management makes these estimates using the best information available at the time the estimates are made; however actual results when ultimately realized could differ from those estimates.

</kndi:UseOfEstimatesTextBlock>

<us-gaap:SignificantAccountingPoliciesTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 6 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC economy. Our operations are conducted mainly in the PRC. As such, our earnings are subject to movements in foreign currency exchange rates when transactions are denominated in Renminbi (“RMB”), which is our functional currency. Accordingly, our operation results are affected by changes in the exchange rate between the U.S. dollar and those currencies. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s performance may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. (b) Fair Value of Financial Instruments ASC 820 “Fair Value Measurement and Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. These tiers include: <ul style="TEXT-ALIGN: justify"> <li style="font-family: times new roman,times,serif; font-size: 10pt;">Level 1—defined as observable inputs such as quoted prices in active markets;</li> <li style="font-family: times new roman,times,serif; font-size: 10pt;">Level 2—defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and</li> <li style="font-family: times new roman,times,serif; font-size: 10pt;">Level 3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.</li> </ul> The assets measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of December 31, 2012 are as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="10" nowrap="nowrap" width="49%">Fair Value Measurements at Reporting Date Using Quoted</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="10" nowrap="nowrap" width="49%">Prices in</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Active</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Significant</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Markets for</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Other</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Significant</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Carrying value as</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Identical</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Observable</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Unobservable</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">of December 31,</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Assets</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Inputs</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Inputs</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">2012</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">(Level 1)</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">(Level 2)</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">(Level 3)</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Cash and cash equivalents</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%"> 12,135,096 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%"> 12,135,096 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Restricted cash</td> <td align="left" width="1%">$</td> <td align="right" width="10%"> 15,835,364 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 15,835,364 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> - </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Warrants (liability)</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%"> 1,513,013 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="right" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%"> 1,513,013 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table> Cash and cash equivalents consist primarily of high rated money market funds at a variety of well-known institutions with original maturities of three months or less. Restricted cash represents time deposits on account, some of which is used to secure short-term bank loans and notes payable. The original cost of these assets approximates fair value due to their short term maturity. Warrants and conversion features embedded in the Convertible Notes, which are accounted as liabilities, are treated as derivative instruments, which will be measured at each reporting date for their fair value using Level 2 inputs. Also see Note 6 section (t) and (u). (c) Cash and Cash Equivalents The Company considers highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Restricted cash on December 31, 2012 and 2011 represent time deposits on account, some of which are used to secure short-term bank loans and note payable. As of December 31, 2012, our restricted cash was as set forth on the table below: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left">Purpose</td> <td align="left" width="1%"> </td> <td align="center" width="12%">Amount</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Used to secure short-term bank loans (also see Note 15)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Used to secure note payable (also see Note 16)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 9,499,533 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Pure time deposits</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 6,335,831 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Total</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 15,835,364 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> </table> (d) Inventories Inventories are stated at the lower of cost or net realizable value (market value). The cost of raw materials is determined on the basis of weighted average. The cost of finished goods is determined on the weighted average basis and comprises direct materials, direct labor and an appropriate proportion of overhead. Net realizable value is based on estimated selling prices less any further costs expected to be incurred for completion and selling expense. (e) Accounts Receivable Accounts receivable are recognized and carried at net realizable value. An allowance for doubtful accounts will be recorded in the period when a loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging, ongoing business relation and other factors. Accounts are written off after exhaustive efforts at collection. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. At December 31, 2012 and 2011, the Company has no allowance for doubtful accounts, as per the management’s judgment based on their best knowledge. As of December 31, 2012 and 2011, the longest credit term used, in connection with certain select customers, was 120 days. (f) Notes Receivable Notes receivable represents short term loans lending to third parties with the maximum term of one year. Interest income will be recognized according to each agreement between a borrower and the Company on accrual basis. If notes receivable are paid back, or written off, that will be recognized in the relevant year if the loan default is probable, reasonably assured and the loss can be reasonably estimated. The company will recognize income if the written-off loan is recovered at a future date. In case of any foreclosure proceedings or legal actions being taken, the company will provide accrual for the related foreclosure expenses and related litigation expenses. (g) Prepayments Prepayments represent cash paid in advance to suppliers. As of December 31, 2012, prepayments included cash paid advances to raw material suppliers, mold manufactures, solder of properties the Company intends to acquire, and prepaid expenses, such as water and electricity fees. (h) Plant and Equipment Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Leasehold improvements are amortized over the life of the asset or the term of the lease, whichever is shorter. Estimated useful lives are as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" bgcolor="#e6efff">Buildings</td> <td align="right" bgcolor="#e6efff" nowrap="nowrap" width="15%"> 30 years </td> </tr> <tr valign="top"> <td align="left">Machinery</td> <td align="right" nowrap="nowrap" width="15%"> 10 years </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Motor vehicles</td> <td align="right" bgcolor="#e6efff" nowrap="nowrap" width="15%"> 5 years </td> </tr> <tr valign="top"> <td align="left">Office equipment</td> <td align="right" nowrap="nowrap" width="15%"> 5 years </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Molds</td> <td align="right" bgcolor="#e6efff" nowrap="nowrap" width="15%"> 5 years </td> </tr> </table> The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to expense as incurred, whereas significant renewals and betterments are capitalized. (i) Construction in Progress Construction in progress represents direct costs of construction or the acquisition cost of buildings or machinery and design fees. Capitalization of these costs ceases and the construction in progress is transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until the assets are completed and ready for their intended use. (j) Land Use Rights According to the laws of China, land in the PRC is owned by the government and it ownership cannot be sold to an individual or a private company. However, the government grants the user a “land use right” to use the land. The land use rights granted to the Company are being amortized using the straight-line method over the lease term of fifty years. (k) Accounting for the Impairment of Long-Lived Assets The Company periodically evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject to amortization, when events and circumstances warrant such a review, pursuant to the guidelines established in Statement of Financial Accounting Standards (“SFAS”) No. 144 (now known as "ASC 360 "). The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair market values are reduced for the cost to dispose. (l) Revenue Recognition Revenues represent the invoiced value of goods sold recognized upon the shipment of goods to customers. Revenues are recognized when all of the following criteria are met: <ul style="TEXT-ALIGN: justify"> <li style="font-family: times new roman,times,serif; font-size: 10pt;">Persuasive evidence of an arrangement exists;</li> <li style="font-family: times new roman,times,serif; font-size: 10pt;">Delivery has occurred or services have been rendered;</li> <li style="font-family: times new roman,times,serif; font-size: 10pt;">The seller’s price to the buyer is fixed or determinable; and</li> <li style="font-family: times new roman,times,serif; font-size: 10pt;">Collectability is reasonably assured.</li> </ul> (m) Research and Development Expenditures relating to the development of new products and processes, including significant improvement to existing products, are expensed as incurred. Research and development expenses were $2,877,283 and $2,304,373 for the years ended December 31, 2012 and 2011, respectively. (n) Government Grant Grants received from the PRC Government for assisting in the Company’s technical research and development efforts are netted against the relevant research and development costs incurred when the proceeds are received or collectible. During 2012 and 2011, $132,139 and $298,072 was received from the PRC Government as a reward for the Company’s contribution to the local economy. (o) Income Taxes The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The accounting for deferred tax calculation represents the management’s best estimate on the most likely future tax consequences of events that have been recognized in our financial statements or tax returns and related future anticipation. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain. (p) Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB). Capital accounts of the consolidated financial statements are translated into United States dollars from RMB at their historical exchange rates when the capital transactions occurr. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the year, which obtained from website: http://www.oanda.com <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Year end RMB : USD exchange rate</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 6.3161 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 6.3647 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Average yearly RMB : USD exchange rate</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6.3198 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6.4735 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> </table> (q) Comprehensive Income Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation changes for the year in which such are obtained. (r) Segments The Company operates in one business segment, development, manufacturing, and commercialization of Super-mini-cars, all-terrain vehicles, go-karts, and special automobile related products. (s) Stock Option Cost The Company’s stock option cost is recorded in accordance with ASC 718 and ASC 505. The fair value of stock options is estimated using the Black-Scholes-Merton model. The Company’s expected volatility assumption is based on the historical volatility of the Company’s stock. The expected life assumption is primarily based on the expiration date of the option. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Stock option expense recognized is based on awards expected to vest, and there were no estimated forfeitures. ASC standards require forfeitures to be estimated at the time of grant and revised in subsequent periods, if necessary, if actual forfeitures differ from those estimates. The stock option based expense for the year ended December 31, 2012 is $19,053. Also see Note 19. (t) Warrant Cost The Company’s warrant costs are recorded in liabilities and equities, respectively, in accordance with ASC 480, ASC 505 and ASC 815. The fair value of warrants, which are classified as liabilities, are estimated using the Black-Scholes-Merton model. The Company’s expected volatility assumption is based on the historical volatility of the Company’s stock. The expected life assumption is primarily based on the expiration date of a warrant. The risk-free interest rate, for the expected term of a warrant, is based on the U.S. Treasury yield curve in effect at the time of measurement. The warrants, which are freestanding derivatives and are classified as liabilities on the balance sheet, will be measured at fair value on each reporting date, with decreases in fair value recognized in earnings and increases in fair values were recognized in expenses. The Company determined that the fair value of equity based warrants, which are not considered derivatives under ASC 815, is estimated using the Black-Scholes-Merton model. The Company’s expected volatility assumption is based on the historical volatility of the Company’s stock. The expected life assumption is primarily based on the expiration date of the warrant. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. (u) Fair Value of Conversion features In accordance with ASC 815, the conversion feature of the Convertible Notes is separated from the debt instrument and accounted for separately as a derivative instrument. On the date the Convertible Notes are issued, the conversion feature was recorded as a liability at its fair value, with future decreases in fair value recognized as earnings and increases in fair values recognized as expenses. The Company used the Black-Scholes-Merton option-pricing model to obtain the fair value of the conversion feature. The Company’s expected volatility assumption is based on the historical volatility of the Company’s stock. The expected life assumption is primarily based on the expiration date of the conversion features. The risk-free interest rate for the expected term of the conversion features is based on the U.S. Treasury yield curve in effect at the time of measurement. (v) Goodwill We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination. We evaluate our reporting units on an annual basis and, if necessary, reassign goodwill using a relative fair value allocation approach. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. We first assess qualitative factors to determine whether it is more likely than not that goodwill is impaired. If the more likely than not threshold is met, we perform a quantitative impairment test. At December 31, 2012, the Company determined that goodwill was not impaired. (w) Intangible assets Intangible assets consist of tradename and customer relations associated with the purchase price allocation of Yongkang Scrou Electric Co.. Such assets are being amortized over their estimated useful lives of 9.7 years. Intangible assets are amortized as of December 31, 2012.

</us-gaap:SignificantAccountingPoliciesTextBlock>

<kndi:EconomicAndPoliticalRisksPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(a) Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC economy. Our operations are conducted mainly in the PRC. As such, our earnings are subject to movements in foreign currency exchange rates when transactions are denominated in Renminbi (“RMB”), which is our functional currency. Accordingly, our operation results are affected by changes in the exchange rate between the U.S. dollar and those currencies. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s performance may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things.

</kndi:EconomicAndPoliticalRisksPolicyTextBlock>

<us-gaap:FairValueOfFinancialInstrumentsPolicy contextRef="cx_01_January_2012_TO_31_December_2012">

(b) Fair Value of Financial Instruments ASC 820 “Fair Value Measurement and Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. These tiers include: <ul style="TEXT-ALIGN: justify"> <li style="font-family: times new roman,times,serif; font-size: 10pt;">Level 1—defined as observable inputs such as quoted prices in active markets;</li> <li style="font-family: times new roman,times,serif; font-size: 10pt;">Level 2—defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and</li> <li style="font-family: times new roman,times,serif; font-size: 10pt;">Level 3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.</li> </ul> The assets measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of December 31, 2012 are as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="10" nowrap="nowrap" width="49%">Fair Value Measurements at Reporting Date Using Quoted</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="10" nowrap="nowrap" width="49%">Prices in</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Active</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Significant</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Markets for</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Other</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Significant</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Carrying value as</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Identical</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Observable</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Unobservable</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">of December 31,</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Assets</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Inputs</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Inputs</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">2012</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">(Level 1)</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">(Level 2)</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">(Level 3)</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Cash and cash equivalents</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%"> 12,135,096 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%"> 12,135,096 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Restricted cash</td> <td align="left" width="1%">$</td> <td align="right" width="10%"> 15,835,364 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 15,835,364 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> - </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Warrants (liability)</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%"> 1,513,013 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="right" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%"> 1,513,013 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table> Cash and cash equivalents consist primarily of high rated money market funds at a variety of well-known institutions with original maturities of three months or less. Restricted cash represents time deposits on account, some of which is used to secure short-term bank loans and notes payable. The original cost of these assets approximates fair value due to their short term maturity. Warrants and conversion features embedded in the Convertible Notes, which are accounted as liabilities, are treated as derivative instruments, which will be measured at each reporting date for their fair value using Level 2 inputs. Also see Note 6 section (t) and (u).

</us-gaap:FairValueOfFinancialInstrumentsPolicy>

<us-gaap:CashAndCashEquivalentsPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(c) Cash and Cash Equivalents The Company considers highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Restricted cash on December 31, 2012 and 2011 represent time deposits on account, some of which are used to secure short-term bank loans and note payable. As of December 31, 2012, our restricted cash was as set forth on the table below: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left">Purpose</td> <td align="left" width="1%"> </td> <td align="center" width="12%">Amount</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Used to secure short-term bank loans (also see Note 15)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Used to secure note payable (also see Note 16)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 9,499,533 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Pure time deposits</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 6,335,831 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Total</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 15,835,364 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> </table>

</us-gaap:CashAndCashEquivalentsPolicyTextBlock>

<us-gaap:InventoryPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(d) Inventories Inventories are stated at the lower of cost or net realizable value (market value). The cost of raw materials is determined on the basis of weighted average. The cost of finished goods is determined on the weighted average basis and comprises direct materials, direct labor and an appropriate proportion of overhead. Net realizable value is based on estimated selling prices less any further costs expected to be incurred for completion and selling expense.

</us-gaap:InventoryPolicyTextBlock>

<us-gaap:TradeAndOtherAccountsReceivablePolicy contextRef="cx_01_January_2012_TO_31_December_2012">

(e) Accounts Receivable Accounts receivable are recognized and carried at net realizable value. An allowance for doubtful accounts will be recorded in the period when a loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging, ongoing business relation and other factors. Accounts are written off after exhaustive efforts at collection. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. At December 31, 2012 and 2011, the Company has no allowance for doubtful accounts, as per the management’s judgment based on their best knowledge. As of December 31, 2012 and 2011, the longest credit term used, in connection with certain select customers, was 120 days.

</us-gaap:TradeAndOtherAccountsReceivablePolicy>

<us-gaap:FinanceLoansAndLeasesReceivablePolicy contextRef="cx_01_January_2012_TO_31_December_2012">

(f) Notes Receivable Notes receivable represents short term loans lending to third parties with the maximum term of one year. Interest income will be recognized according to each agreement between a borrower and the Company on accrual basis. If notes receivable are paid back, or written off, that will be recognized in the relevant year if the loan default is probable, reasonably assured and the loss can be reasonably estimated. The company will recognize income if the written-off loan is recovered at a future date. In case of any foreclosure proceedings or legal actions being taken, the company will provide accrual for the related foreclosure expenses and related litigation expenses.

</us-gaap:FinanceLoansAndLeasesReceivablePolicy>

<kndi:PrepaymentsPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(g) Prepayments Prepayments represent cash paid in advance to suppliers. As of December 31, 2012, prepayments included cash paid advances to raw material suppliers, mold manufactures, solder of properties the Company intends to acquire, and prepaid expenses, such as water and electricity fees.

</kndi:PrepaymentsPolicyTextBlock>

<us-gaap:PropertyPlantAndEquipmentPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(h) Plant and Equipment Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Leasehold improvements are amortized over the life of the asset or the term of the lease, whichever is shorter. Estimated useful lives are as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" bgcolor="#e6efff">Buildings</td> <td align="right" bgcolor="#e6efff" nowrap="nowrap" width="15%"> 30 years </td> </tr> <tr valign="top"> <td align="left">Machinery</td> <td align="right" nowrap="nowrap" width="15%"> 10 years </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Motor vehicles</td> <td align="right" bgcolor="#e6efff" nowrap="nowrap" width="15%"> 5 years </td> </tr> <tr valign="top"> <td align="left">Office equipment</td> <td align="right" nowrap="nowrap" width="15%"> 5 years </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Molds</td> <td align="right" bgcolor="#e6efff" nowrap="nowrap" width="15%"> 5 years </td> </tr> </table> The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to expense as incurred, whereas significant renewals and betterments are capitalized.

</us-gaap:PropertyPlantAndEquipmentPolicyTextBlock>

<kndi:ConstructionInProgressPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(i) Construction in Progress Construction in progress represents direct costs of construction or the acquisition cost of buildings or machinery and design fees. Capitalization of these costs ceases and the construction in progress is transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until the assets are completed and ready for their intended use.

</kndi:ConstructionInProgressPolicyTextBlock>

<kndi:LandUseRightsPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(j) Land Use Rights According to the laws of China, land in the PRC is owned by the government and it ownership cannot be sold to an individual or a private company. However, the government grants the user a “land use right” to use the land. The land use rights granted to the Company are being amortized using the straight-line method over the lease term of fifty years.

</kndi:LandUseRightsPolicyTextBlock>

<us-gaap:ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(k) Accounting for the Impairment of Long-Lived Assets The Company periodically evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject to amortization, when events and circumstances warrant such a review, pursuant to the guidelines established in Statement of Financial Accounting Standards (“SFAS”) No. 144 (now known as "ASC 360 "). The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair market values are reduced for the cost to dispose.

</us-gaap:ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock>

<us-gaap:RevenueRecognitionPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(l) Revenue Recognition Revenues represent the invoiced value of goods sold recognized upon the shipment of goods to customers. Revenues are recognized when all of the following criteria are met: <ul style="TEXT-ALIGN: justify"> <li style="font-family: times new roman,times,serif; font-size: 10pt;">Persuasive evidence of an arrangement exists;</li> <li style="font-family: times new roman,times,serif; font-size: 10pt;">Delivery has occurred or services have been rendered;</li> <li style="font-family: times new roman,times,serif; font-size: 10pt;">The seller’s price to the buyer is fixed or determinable; and</li> <li style="font-family: times new roman,times,serif; font-size: 10pt;">Collectability is reasonably assured.</li> </ul>

</us-gaap:RevenueRecognitionPolicyTextBlock>

<us-gaap:ResearchAndDevelopmentExpensePolicy contextRef="cx_01_January_2012_TO_31_December_2012">

(m) Research and Development Expenditures relating to the development of new products and processes, including significant improvement to existing products, are expensed as incurred. Research and development expenses were $2,877,283 and $2,304,373 for the years ended December 31, 2012 and 2011, respectively.

</us-gaap:ResearchAndDevelopmentExpensePolicy>

<kndi:GovernmentGrantPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(n) Government Grant Grants received from the PRC Government for assisting in the Company’s technical research and development efforts are netted against the relevant research and development costs incurred when the proceeds are received or collectible. During 2012 and 2011, $132,139 and $298,072 was received from the PRC Government as a reward for the Company’s contribution to the local economy.

</kndi:GovernmentGrantPolicyTextBlock>

<us-gaap:IncomeTaxPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(o) Income Taxes The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The accounting for deferred tax calculation represents the management’s best estimate on the most likely future tax consequences of events that have been recognized in our financial statements or tax returns and related future anticipation. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain.

</us-gaap:IncomeTaxPolicyTextBlock>

<us-gaap:ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(p) Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB). Capital accounts of the consolidated financial statements are translated into United States dollars from RMB at their historical exchange rates when the capital transactions occurr. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the year, which obtained from website: http://www.oanda.com <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Year end RMB : USD exchange rate</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 6.3161 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 6.3647 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Average yearly RMB : USD exchange rate</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6.3198 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6.4735 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> </table>

</us-gaap:ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock>

<us-gaap:ComprehensiveIncomePolicyPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(q) Comprehensive Income Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation changes for the year in which such are obtained.

</us-gaap:ComprehensiveIncomePolicyPolicyTextBlock>

<us-gaap:SegmentReportingPolicyPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(r) Segments The Company operates in one business segment, development, manufacturing, and commercialization of Super-mini-cars, all-terrain vehicles, go-karts, and special automobile related products.

</us-gaap:SegmentReportingPolicyPolicyTextBlock>

<us-gaap:ShareBasedCompensationOptionAndIncentivePlansPolicy contextRef="cx_01_January_2012_TO_31_December_2012">

(s) Stock Option Cost The Company’s stock option cost is recorded in accordance with ASC 718 and ASC 505. The fair value of stock options is estimated using the Black-Scholes-Merton model. The Company’s expected volatility assumption is based on the historical volatility of the Company’s stock. The expected life assumption is primarily based on the expiration date of the option. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Stock option expense recognized is based on awards expected to vest, and there were no estimated forfeitures. ASC standards require forfeitures to be estimated at the time of grant and revised in subsequent periods, if necessary, if actual forfeitures differ from those estimates. The stock option based expense for the year ended December 31, 2012 is $19,053. Also see Note 19.

</us-gaap:ShareBasedCompensationOptionAndIncentivePlansPolicy>

<kndi:WarrantCostPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(t) Warrant Cost The Company’s warrant costs are recorded in liabilities and equities, respectively, in accordance with ASC 480, ASC 505 and ASC 815. The fair value of warrants, which are classified as liabilities, are estimated using the Black-Scholes-Merton model. The Company’s expected volatility assumption is based on the historical volatility of the Company’s stock. The expected life assumption is primarily based on the expiration date of a warrant. The risk-free interest rate, for the expected term of a warrant, is based on the U.S. Treasury yield curve in effect at the time of measurement. The warrants, which are freestanding derivatives and are classified as liabilities on the balance sheet, will be measured at fair value on each reporting date, with decreases in fair value recognized in earnings and increases in fair values were recognized in expenses. The Company determined that the fair value of equity based warrants, which are not considered derivatives under ASC 815, is estimated using the Black-Scholes-Merton model. The Company’s expected volatility assumption is based on the historical volatility of the Company’s stock. The expected life assumption is primarily based on the expiration date of the warrant. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

</kndi:WarrantCostPolicyTextBlock>

<kndi:FairValueOfConversionFeaturesPolicyTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

(u) Fair Value of Conversion features In accordance with ASC 815, the conversion feature of the Convertible Notes is separated from the debt instrument and accounted for separately as a derivative instrument. On the date the Convertible Notes are issued, the conversion feature was recorded as a liability at its fair value, with future decreases in fair value recognized as earnings and increases in fair values recognized as expenses. The Company used the Black-Scholes-Merton option-pricing model to obtain the fair value of the conversion feature. The Company’s expected volatility assumption is based on the historical volatility of the Company’s stock. The expected life assumption is primarily based on the expiration date of the conversion features. The risk-free interest rate for the expected term of the conversion features is based on the U.S. Treasury yield curve in effect at the time of measurement.

</kndi:FairValueOfConversionFeaturesPolicyTextBlock>

<us-gaap:GoodwillAndIntangibleAssetsGoodwillPolicy contextRef="cx_01_January_2012_TO_31_December_2012">

(v) Goodwill We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination. We evaluate our reporting units on an annual basis and, if necessary, reassign goodwill using a relative fair value allocation approach. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. We first assess qualitative factors to determine whether it is more likely than not that goodwill is impaired. If the more likely than not threshold is met, we perform a quantitative impairment test. At December 31, 2012, the Company determined that goodwill was not impaired.

</us-gaap:GoodwillAndIntangibleAssetsGoodwillPolicy>

<us-gaap:GoodwillAndIntangibleAssetsIntangibleAssetsPolicy contextRef="cx_01_January_2012_TO_31_December_2012">

(w) Intangible assets Intangible assets consist of tradename and customer relations associated with the purchase price allocation of Yongkang Scrou Electric Co.. Such assets are being amortized over their estimated useful lives of 9.7 years. Intangible assets are amortized as of December 31, 2012.

</us-gaap:GoodwillAndIntangibleAssetsIntangibleAssetsPolicy>

<us-gaap:FairValueByBalanceSheetGroupingTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="10" nowrap="nowrap" width="49%">Fair Value Measurements at Reporting Date Using Quoted</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="10" nowrap="nowrap" width="49%">Prices in</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Active</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Significant</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Markets for</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Other</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Significant</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Carrying value as</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Identical</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Observable</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Unobservable</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">of December 31,</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Assets</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Inputs</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">Inputs</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">2012</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">(Level 1)</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">(Level 2)</td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%">(Level 3)</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Cash and cash equivalents</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%"> 12,135,096 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%"> 12,135,096 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Restricted cash</td> <td align="left" width="1%">$</td> <td align="right" width="10%"> 15,835,364 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 15,835,364 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> - </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Warrants (liability)</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%"> 1,513,013 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="right" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="10%"> 1,513,013 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table>

</us-gaap:FairValueByBalanceSheetGroupingTextBlock>

<kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNineNNpCtBMJSFSSeven contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 12135096 </kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNineNNpCtBMJSFSSeven>

<kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNineEightKFiveQBRpdFivehrSeven contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 12135096 </kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNineEightKFiveQBRpdFivehrSeven>

<kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNineVFiveDFiveltGwSevenSNinem contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNineVFiveDFiveltGwSevenSNinem>

<kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNinezcZqDTwoQhQFivenv contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNinezcZqDTwoQhQFivenv>

<kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNineSixNJDZtPyzgFourl contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 15835364 </kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNineSixNJDZtPyzgFourl>

<kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNineCmmEightXBwfFivedyT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 15835364 </kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNineCmmEightXBwfFivedyT>

<kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNineCBFiveZlHFivegSixDfv contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNineCBFiveZlHFivegSixDfv>

<kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNinecwncZeroLmTFCTF contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNinecwncZeroLmTFCTF>

<kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNineSixSixdLgZerownJFzSeven contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1513013 </kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNineSixSixdLgZerownJFzSeven>

<kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNinehKEightKwRmzlfZeroh contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNinehKEightKwRmzlfZeroh>

<kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNinefMSevenSixZeroSzFourxBxB contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1513013 </kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNinefMSevenSixZeroSzFourxBxB>

<kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNinebLtfdCgNXsrV contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfFairValueByBalanceSheetGroupingZeroOneThreeOneZeroOneSevenFourNinebLtfdCgNXsrV>

<us-gaap:ScheduleOfRestrictedCashAndCashEquivalentsTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left">Purpose</td> <td align="left" width="1%"> </td> <td align="center" width="12%">Amount</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Used to secure short-term bank loans (also see Note 15)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Used to secure note payable (also see Note 16)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 9,499,533 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Pure time deposits</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 6,335,831 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Total</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 15,835,364 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> </table>

</us-gaap:ScheduleOfRestrictedCashAndCashEquivalentsTextBlock>

<kndi:ScheduleOfCashAndCashEquivalentsZeroOneThreeOneZeroOneSevenFourNinetylqFiveQNineNineTSixTr contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfCashAndCashEquivalentsZeroOneThreeOneZeroOneSevenFourNinetylqFiveQNineNineTSixTr>

<kndi:ScheduleOfCashAndCashEquivalentsZeroOneThreeOneZeroOneSevenFourNineBbsSevenWEightFivewwZsy contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 9499533 </kndi:ScheduleOfCashAndCashEquivalentsZeroOneThreeOneZeroOneSevenFourNineBbsSevenWEightFivewwZsy>

<kndi:ScheduleOfCashAndCashEquivalentsZeroOneThreeOneZeroOneSevenFourNineMyMMPwTmSixlTz contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 6335831 </kndi:ScheduleOfCashAndCashEquivalentsZeroOneThreeOneZeroOneSevenFourNineMyMMPwTmSixlTz>

<kndi:ScheduleOfCashAndCashEquivalentsZeroOneThreeOneZeroOneSevenFourNineFQSXKREightmCvNineK contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 15835364 </kndi:ScheduleOfCashAndCashEquivalentsZeroOneThreeOneZeroOneSevenFourNineFQSXKREightmCvNineK>

<kndi:ScheduleOfPropertyAndEquipmentEstimatedUsefulLivesTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" bgcolor="#e6efff">Buildings</td> <td align="right" bgcolor="#e6efff" nowrap="nowrap" width="15%"> 30 years </td> </tr> <tr valign="top"> <td align="left">Machinery</td> <td align="right" nowrap="nowrap" width="15%"> 10 years </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Motor vehicles</td> <td align="right" bgcolor="#e6efff" nowrap="nowrap" width="15%"> 5 years </td> </tr> <tr valign="top"> <td align="left">Office equipment</td> <td align="right" nowrap="nowrap" width="15%"> 5 years </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Molds</td> <td align="right" bgcolor="#e6efff" nowrap="nowrap" width="15%"> 5 years </td> </tr> </table>

</kndi:ScheduleOfPropertyAndEquipmentEstimatedUsefulLivesTableTextBlock>

<kndi:ScheduleOfPropertyAndEquipmentEstimatedUsefulLivesZeroOneThreeOneZeroOneSevenFourNineCSevenWCPFvHSixvHG contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="y" decimals="0"> 30 </kndi:ScheduleOfPropertyAndEquipmentEstimatedUsefulLivesZeroOneThreeOneZeroOneSevenFourNineCSevenWCPFvHSixvHG>

<kndi:ScheduleOfPropertyAndEquipmentEstimatedUsefulLivesZeroOneThreeOneZeroOneSevenFourNinenwzVTwobMDFSixZK contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="y" decimals="0"> 10 </kndi:ScheduleOfPropertyAndEquipmentEstimatedUsefulLivesZeroOneThreeOneZeroOneSevenFourNinenwzVTwobMDFSixZK>

<kndi:ScheduleOfPropertyAndEquipmentEstimatedUsefulLivesZeroOneThreeOneZeroOneSevenFourNineFhwNGGzvNineBhFour contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="y" decimals="0"> 5 </kndi:ScheduleOfPropertyAndEquipmentEstimatedUsefulLivesZeroOneThreeOneZeroOneSevenFourNineFhwNGGzvNineBhFour>

<kndi:ScheduleOfPropertyAndEquipmentEstimatedUsefulLivesZeroOneThreeOneZeroOneSevenFourNinellJHThreeySxKNineST contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="y" decimals="0"> 5 </kndi:ScheduleOfPropertyAndEquipmentEstimatedUsefulLivesZeroOneThreeOneZeroOneSevenFourNinellJHThreeySxKNineST>

<kndi:ScheduleOfPropertyAndEquipmentEstimatedUsefulLivesZeroOneThreeOneZeroOneSevenFourNinezVKlTzThreeTyTQp contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="y" decimals="0"> 5 </kndi:ScheduleOfPropertyAndEquipmentEstimatedUsefulLivesZeroOneThreeOneZeroOneSevenFourNinezVKlTzThreeTyTQp>

<kndi:ScheduleOfAverageForeignCurrencyExchangeRatesTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Year end RMB : USD exchange rate</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 6.3161 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 6.3647 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Average yearly RMB : USD exchange rate</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6.3198 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6.4735 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> </table>

</kndi:ScheduleOfAverageForeignCurrencyExchangeRatesTableTextBlock>

<kndi:ScheduleOfAverageForeignCurrencyExchangeRatesZeroOneThreeOneZeroOneSevenFourNineThreeThreegrxMxkmkQm contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 6.3161 </kndi:ScheduleOfAverageForeignCurrencyExchangeRatesZeroOneThreeOneZeroOneSevenFourNineThreeThreegrxMxkmkQm>

<kndi:ScheduleOfAverageForeignCurrencyExchangeRatesZeroOneThreeOneZeroOneSevenFourNineSevenCzqPGFiveRckNinet contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 6.3647 </kndi:ScheduleOfAverageForeignCurrencyExchangeRatesZeroOneThreeOneZeroOneSevenFourNineSevenCzqPGFiveRckNinet>

<kndi:ScheduleOfAverageForeignCurrencyExchangeRatesZeroOneThreeOneZeroOneSevenFourNinexPZXTHZCXghB contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 6.3198 </kndi:ScheduleOfAverageForeignCurrencyExchangeRatesZeroOneThreeOneZeroOneSevenFourNinexPZXTHZCXghB>

<kndi:ScheduleOfAverageForeignCurrencyExchangeRatesZeroOneThreeOneZeroOneSevenFourNineDkgmWkGWThreeKNineX contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 6.4735 </kndi:ScheduleOfAverageForeignCurrencyExchangeRatesZeroOneThreeOneZeroOneSevenFourNineDkgmWkGWThreeKNineX>

<kndi:SummaryOfSignificantAccountingPoliciesZeroOneThreeOneZeroOneSevenFourNinemqVEightSDkfQRtEight contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="d" decimals="0"> 120 </kndi:SummaryOfSignificantAccountingPoliciesZeroOneThreeOneZeroOneSevenFourNinemqVEightSDkfQRtEight>

<kndi:SummaryOfSignificantAccountingPoliciesZeroOneThreeOneZeroOneSevenFourNineZJSixDfOneWgFourDSevenZero contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2877283 </kndi:SummaryOfSignificantAccountingPoliciesZeroOneThreeOneZeroOneSevenFourNineZJSixDfOneWgFourDSevenZero>

<kndi:SummaryOfSignificantAccountingPoliciesZeroOneThreeOneZeroOneSevenFourNinecSeventZQnvLSixFFiveS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2304373 </kndi:SummaryOfSignificantAccountingPoliciesZeroOneThreeOneZeroOneSevenFourNinecSeventZQnvLSixFFiveS>

<kndi:SummaryOfSignificantAccountingPoliciesZeroOneThreeOneZeroOneSevenFourNineThreesTwoZcHFivegRlvNine contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 132139 </kndi:SummaryOfSignificantAccountingPoliciesZeroOneThreeOneZeroOneSevenFourNineThreesTwoZcHFivegRlvNine>

<kndi:SummaryOfSignificantAccountingPoliciesZeroOneThreeOneZeroOneSevenFourNineZeroSKbcxZTLFlm contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 298072 </kndi:SummaryOfSignificantAccountingPoliciesZeroOneThreeOneZeroOneSevenFourNineZeroSKbcxZTLFlm>

<kndi:SummaryOfSignificantAccountingPoliciesZeroOneThreeOneZeroOneSevenFourNineNZXFourtTwovGBtEightg contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 19053 </kndi:SummaryOfSignificantAccountingPoliciesZeroOneThreeOneZeroOneSevenFourNineNZXFourtTwovGBtEightg>

<kndi:SummaryOfSignificantAccountingPoliciesZeroOneThreeOneZeroOneSevenFourNinelRJOnerEightNPpVVEight contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="y" decimals="1"> 9.7 </kndi:SummaryOfSignificantAccountingPoliciesZeroOneThreeOneZeroOneSevenFourNinelRJOnerEightNPpVVEight>

<us-gaap:AccountingChangesAndErrorCorrectionsTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 7 – NEW ACCOUNTING PRONOUNCEMENTS In July 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-02, Intangibles--Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. This ASU states that an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount in accordance with Codification Subtopic 350-30, Intangibles--Goodwill and Other, General Intangibles Other than Goodwill. Under the guidance in this ASU, an entity also has the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test. An entity will be able to resume performing the qualitative assessment in any subsequent period. The amendments in this ASU are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company does not expect the adoption of 2012-02 to have a material effect on its operating results or financial position. In August 2012, FASB issued Accounting Standards Update (ASU) No. 2012-03, Technical Amendments and Corrections to SEC Sections. This ASU amends various SEC paragraphs pursuant to SAB 114, SEC Release No. 33-9250, and ASU 2010-22, which amend or rescind portions of certain SAB Topics. The adoption of 2012-03 did not have a material effect on the Company’s operating results or financial position. In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-04, Technical Corrections and Improvements. This ASU make technical corrections, clarifications, and limited-scope improvements to various Topics throughout the Codification. The amendments in this ASU that will not have transition guidance will be effective upon issuance for both public entities and nonpublic entities. For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. For nonpublic entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2013. The Company does not expect the adoption of 2012-02 to have a material effect on its operating results or financial position. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

</us-gaap:AccountingChangesAndErrorCorrectionsTextBlock>

<us-gaap:ConcentrationRiskDisclosureTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 8 – CONCENTRATIONS (a) Customers The Company’s major customers for the years ended December 31, 2012 and 2011 accounted for the following percentages of total sales and accounts receivable as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="23%"> Sales </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="23%"> Accounts Receivable </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Twelve </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Twelve </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Months </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Months </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Ended </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Ended </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Major Customers </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> December, 31, 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> December, 31, 2011 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> December 31, 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> December 31, 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Company A</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 33% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 8% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 21% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 2% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Company B</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 19% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 42% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Company C</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 12% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 25% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 8% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 56% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Company D</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 11% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 20% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 7% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 19% </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Company E</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 8% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 8% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table> (b) Suppliers The Company’s major suppliers for the years ended December 31, 2012 and 2011 accounted for the following percentage of total purchases and accounts payable as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" width="23%"> Purchases </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" colspan="4" width="23%"> Accounts Payable </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" width="10%"> Twelve </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> Twelve </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" width="10%"> Months </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> Months </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" width="10%"> Ended </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> Ended </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Major Suppliers </td> <td align="left" width="1%"> </td> <td align="center" width="10%"> December, 31, 2012 </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> December, 31, 2011 </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> December 31, 2012 </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> December 31, 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Company F</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 32% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 61% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 4% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 1% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Company G</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 26% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Company H</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 6% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 1% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Company I</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 2% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 1% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Company J</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 2% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 1% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table>

</us-gaap:ConcentrationRiskDisclosureTextBlock>

<us-gaap:ScheduleOfRevenueByMajorCustomersByReportingSegmentsTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="23%"> Sales </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="23%"> Accounts Receivable </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Twelve </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Twelve </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Months </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Months </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Ended </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Ended </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Major Customers </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> December, 31, 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> December, 31, 2011 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> December 31, 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> December 31, 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Company A</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 33% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 8% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 21% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 2% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Company B</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 19% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 42% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Company C</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 12% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 25% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 8% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 56% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Company D</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 11% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 20% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 7% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 19% </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Company E</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 8% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 8% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table>

</us-gaap:ScheduleOfRevenueByMajorCustomersByReportingSegmentsTableTextBlock>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNinewQzDdWxnBbvM contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.33 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNinewQzDdWxnBbvM>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineEightrFourTThreevgBEighthXG contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.08 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineEightrFourTThreevgBEighthXG>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNinedNWFourNineTcXgFourHFour contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.21 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNinedNWFourNineTcXgFourHFour>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineLJvThreeXzTrLDNR contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.02 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineLJvThreeXzTrLDNR>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNinezVFourThreeMmvCgMDEight contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.19 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNinezVFourThreeMmvCgMDEight>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineOnehZeroXVdKwQZerolp contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineOnehZeroXVdKwQZerolp>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNinetNNineSixwgWZeropcfc contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.42 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNinetNNineSixwgWZeropcfc>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineSixNFVfXDLDSevenRz contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineSixNFVfXDLDSevenRz>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineKSqyBOnesCkfDP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.12 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineKSqyBOnesCkfDP>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineNBvSevenTGsdfKvT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.25 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineNBvSevenTGsdfKvT>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNinerlksTKFivetknkT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.08 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNinerlksTKFivetknkT>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineTFourcZeroNShZVPFiveK contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.56 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineTFourcZeroNShZVPFiveK>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNinePSevenThreeCtcWmLEightXSeven contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.11 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNinePSevenThreeCtcWmLEightXSeven>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineSevenDlrzshThreeBhKR contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.20 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineSevenDlrzshThreeBhKR>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineFiveFiveFivezNdwFsOneCD contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.07 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineFiveFiveFivezNdwFsOneCD>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineVGMLMRqvlLThreen contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.19 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineVGMLMRqvlLThreen>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineTfZeroSixqFourVfLTSevenT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.08 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineTfZeroSixqFourVfLTSevenT>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineSixFnZHRlSixlSixbNine contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineSixFnZHRlSixlSixbNine>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNinekrsMTJFourzJVFd contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.08 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNinekrsMTJFourzJVFd>

<kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineZeroZeroQHmzmwGFGF contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfRevenueAndAccountsReceivablePercentageByMajorCustomersZeroOneThreeOneZeroOneSevenFourNineZeroZeroQHmzmwGFGF>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" width="23%"> Purchases </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" colspan="4" width="23%"> Accounts Payable </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" width="10%"> Twelve </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> Twelve </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" width="10%"> Months </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> Months </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" width="10%"> Ended </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> Ended </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Major Suppliers </td> <td align="left" width="1%"> </td> <td align="center" width="10%"> December, 31, 2012 </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> December, 31, 2011 </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> December 31, 2012 </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="10%"> December 31, 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Company F</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 32% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 61% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 4% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 1% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Company G</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 26% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Company H</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 6% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 1% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Company I</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 2% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> 1% </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="10%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Company J</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 2% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> 1% </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="10%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table>

</kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersTableTextBlock>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineTwoJRZGShqKpLS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.32 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineTwoJRZGShqKpLS>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNinexmMDDbJzJSWM contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.61 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNinexmMDDbJzJSWM>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineBlVqCRFBSktT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.04 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineBlVqCRFBSktT>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineJBHbLfNineNineVWLD contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.01 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineJBHbLfNineNineVWLD>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineTTKltLgThreecWNQ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.26 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineTTKltLgThreecWNQ>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNinetSevenLSixSixFMTFszG contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNinetSevenLSixSixFMTFszG>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineFourrSevenfSVvZerozsym contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineFourrSevenfSVvZerozsym>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineyFourcdzLPBCFourPR contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineyFourcdzLPBCFourPR>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineZSevensOnecsNinefknXK contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.06 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineZSevensOnecsNinefknXK>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineqvSixSixpZeroyKMNlH contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineqvSixSixpZeroyKMNlH>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineTEightLCgdSevenpTCGT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.01 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineTEightLCgdSevenpTCGT>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineNinekkkVHRSyyqB contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineNinekkkVHRSyyqB>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineFivedhSeventrvJsqNv contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.02 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineFivedhSeventrvJsqNv>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineTVzThreeFourDlwGsxOne contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineTVzThreeFourDlwGsxOne>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineFourMTwoqCNineWTwoEightSTB contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.01 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineFourMTwoqCNineWTwoEightSTB>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNinegSKsEightJffFiveFourTwoq contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNinegSKsEightJffFiveFourTwoq>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineNWKyhSbrKWKEight contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.02 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineNWKyhSbrKWKEight>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineglXEightKtkSevenNqZeroTwo contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineglXEightKtkSevenNqZeroTwo>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineQxOnefDTwoRynnmEight contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.01 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNineQxOnefDTwoRynnmEight>

<kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNinedZRSevenNTwoOneHGGTS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfPurchasesAndAccountsPayablePercentageByMajorSuppliersZeroOneThreeOneZeroOneSevenFourNinedZRSevenNTwoOneHGGTS>

<us-gaap:EarningsPerShareTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 9 – INCOME PER SHARE The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share are computed using the weighted average number of shares outstanding during the fiscal year. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding stock options, warrants and convertible note (using the if-converted method). For the fiscal year ended December 31, 2012, there are 237,997 potentially dilutive common shares. The following table sets forth the computation of basic and diluted net income per common share: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left">Twelve months Ended December 31,</td> <td align="left" width="1%"> </td> <td align="center" width="12%">2012</td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="12%">2011</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Net income</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 6,049,479 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 9,114,770 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Weighted – average shares of common stock outstanding</td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Basic</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 29,439,328 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 27,438,725 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Dilutive shares</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 237,997 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,297,023 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Diluted</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 29,677,325 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 28,735,748 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Basic earnings per share</td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 0.21 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 0.33 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Diluted earnings per share</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 0.20 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 0.32 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table> Also see Note 19.

</us-gaap:EarningsPerShareTextBlock>

<us-gaap:ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left">Twelve months Ended December 31,</td> <td align="left" width="1%"> </td> <td align="center" width="12%">2012</td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="12%">2011</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Net income</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 6,049,479 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 9,114,770 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Weighted – average shares of common stock outstanding</td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Basic</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 29,439,328 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 27,438,725 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Dilutive shares</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 237,997 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,297,023 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Diluted</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 29,677,325 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 28,735,748 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Basic earnings per share</td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 0.21 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 0.33 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Diluted earnings per share</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 0.20 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 0.32 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table>

</us-gaap:ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock>

<kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNineddQwyTwogwwCZW contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 6049479 </kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNineddQwyTwogwwCZW>

<kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNineTwoFivetSevenNineRFLHGGZero contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 9114770 </kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNineTwoFivetSevenNineRFLHGGZero>

<kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNinexPzVwSevenyLrSwL contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 29439328 </kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNinexPzVwSevenyLrSwL>

<kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNineJqNHNineDZXvNXThree contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 27438725 </kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNineJqNHNineDZXvNXThree>

<kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNineRLpFourBDLtxPpt contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 237997 </kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNineRLpFourBDLtxPpt>

<kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNinerHntmQXDxSevenBs contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1297023 </kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNinerHntmQXDxSevenBs>

<kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNineWqdLTwoNJTwoNFcB contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 29677325 </kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNineWqdLTwoNJTwoNFcB>

<kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNineTyZRTwoREightThreeVOneTwop contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 28735748 </kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNineTyZRTwoREightThreeVOneTwop>

<kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNinezgkSevenfkhPOneNineqSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.21 </kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNinezgkSevenfkhPOneNineqSix>

<kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNinetDGvSeventRgtKgOne contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.33 </kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNinetDGvSeventRgtKgOne>

<kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNinerZlDfhXOnehttV contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.20 </kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNinerZlDfhXOnehttV>

<kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNineqzwThreevkfTtgZk contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.32 </kndi:ScheduleOfEarningsPerShareBasicAndDilutedZeroOneThreeOneZeroOneSevenFourNineqzwThreevkfTtgZk>

<kndi:IncomePerShareZeroOneThreeOneZeroOneSevenFourNinembXQkTwoqNinebThreeTJ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="0"> 237997 </kndi:IncomePerShareZeroOneThreeOneZeroOneSevenFourNinembXQkTwoqNinebThreeTJ>

<us-gaap:InventoryDisclosureTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 10 - INVENTORIES Inventories are summarized as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Raw material</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 2,278,096 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,737,211 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Work-in-progress</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3,649,414 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3,898,950 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Finished goods</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,759,453 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,110,793 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Total inventories</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 7,686,963 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6,746,954 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Less: reserve for slowing moving inventories</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (56,248 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (72,487 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left">Inventories, net</td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 7,630,715 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 6,674,467 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> </table>

</us-gaap:InventoryDisclosureTextBlock>

<us-gaap:ScheduleOfInventoryCurrentTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Raw material</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 2,278,096 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,737,211 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Work-in-progress</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3,649,414 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3,898,950 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Finished goods</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,759,453 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,110,793 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Total inventories</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 7,686,963 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6,746,954 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Less: reserve for slowing moving inventories</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (56,248 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (72,487 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left">Inventories, net</td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 7,630,715 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 6,674,467 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> </table>

</us-gaap:ScheduleOfInventoryCurrentTableTextBlock>

<kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNinevWJgTKFiveWTgbM contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2278096 </kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNinevWJgTKFiveWTgbM>

<kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNineJTwowQFourqdGPMng contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1737211 </kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNineJTwowQFourqdGPMng>

<kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNineZeroRZeroqClJmOneqrf contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3649414 </kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNineZeroRZeroqClJmOneqrf>

<kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNinePqTSixLsTwSsGW contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3898950 </kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNinePqTSixLsTwSsGW>

<kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNineBgFdEightmnDvNineFourw contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1759453 </kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNineBgFdEightmnDvNineFourw>

<kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNineZFourLThreePFFFiveNineyZeron contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1110793 </kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNineZFourLThreePFFFiveNineyZeron>

<kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNinecbKTcmQNineVFiveyG contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 7686963 </kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNinecbKTcmQNineVFiveyG>

<kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNinedtWrXHOneQDFiveWT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 6746954 </kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNinedtWrXHOneQDFiveWT>

<kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNineZdhNinedChXzFourFm contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -56248 </kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNineZdhNinedChXzFourFm>

<kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNineJThreeRwCSGGSEightZeroT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -72487 </kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNineJThreeRwCSGGSEightZeroT>

<kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNinekFiveEightBSixMqFivezhqSeven contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 7630715 </kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNinekFiveEightBSixMqFivezhqSeven>

<kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNinebRFourVThreeGTwoZeroFiveRThreex contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 6674467 </kndi:ScheduleOfInventoriesZeroOneThreeOneZeroOneSevenFourNinebRFourVThreeGTwoZeroFiveRThreex>

<us-gaap:LoansNotesTradeAndOtherReceivablesDisclosureTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 11 - NOTES RECEIVABLE Notes receivable are summarized as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Notes receivable from unrelated companies:</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Due April 7, 2012, interest at 9.6% per annum 1 </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 4,713,498 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Due September 30, 2012, interest at 9.6% per annum 2 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 33,165,745 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Due September 30, 2013, interest at 9.6% per annum 3 </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 9,562,429 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Notes receivable from unrelated companies</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 9,562,429 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 37,879,243 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Bank acceptance notes:</td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Bank acceptance notes</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Notes receivable</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 9,562,429 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 37,879,243 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table> Notes receivable are unsecured. Details of Notes receivable from unrelated parties as of December 31, 2011 <div> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" nowrap="nowrap">Amount($)</td> <td align="left" nowrap="nowrap" width="20%">Counter party</td> <td align="left" nowrap="nowrap" width="20%">Relationship</td> <td align="left" nowrap="nowrap" width="20%">Purpose of Loan</td> <td align="left" nowrap="nowrap" width="20%">Manner of settlement</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> 1) 4,713,498 </td> <td align="left" bgcolor="#e6efff" width="20%">Zhejiang XinNeng Auto System Co., Ltd.</td> <td align="left" bgcolor="#e6efff" width="20%">No relationship beyond loan</td> <td align="left" bgcolor="#e6efff" width="20%">Receive interest income</td> <td align="left" bgcolor="#e6efff" width="20%">Repaid in cash</td> </tr> <tr valign="top"> <td align="left"> 2) 33,165,745 </td> <td align="left" width="20%">Yongkang HuiFeng Guarantee Co., Ltd</td> <td align="left" width="20%">No relationship beyond loan</td> <td align="left" width="20%">Receive interest income</td> <td align="left" width="20%">Repaid part in cash and renewed on the due date</td> </tr> </table> </div> Details of Notes receivable from unrelated parties as of December 31, 2012 <div> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left">Amount($)</td> <td align="left" width="20%">Counter party</td> <td align="left" width="20%">Relationship</td> <td align="left" width="20%">Purpose of Loan</td> <td align="left" width="20%">Manner of settlement</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> 3) 9,562,429 </td> <td align="left" bgcolor="#e6efff" width="20%">Yongkang HuiFeng Guarantee Co., Ltd</td> <td align="left" bgcolor="#e6efff" width="20%">No relationship beyond loan</td> <td align="left" bgcolor="#e6efff" width="20%">Receive interest income</td> <td align="left" bgcolor="#e6efff" width="20%">Not Due</td> </tr> </table> </div>

</us-gaap:LoansNotesTradeAndOtherReceivablesDisclosureTextBlock>

<us-gaap:ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Notes receivable from unrelated companies:</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Due April 7, 2012, interest at 9.6% per annum 1 </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 4,713,498 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Due September 30, 2012, interest at 9.6% per annum 2 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 33,165,745 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Due September 30, 2013, interest at 9.6% per annum 3 </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 9,562,429 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Notes receivable from unrelated companies</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 9,562,429 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 37,879,243 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Bank acceptance notes:</td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Bank acceptance notes</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Notes receivable</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 9,562,429 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 37,879,243 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table>

</us-gaap:ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock>

<kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNinetSevenVyQKCWbTPx contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="3"> 0.096 </kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNinetSevenVyQKCWbTPx>

<kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNineWHFivehVtLFkhNR contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4713498 </kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNineWHFivehVtLFkhNR>

<kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNineNineFCScyThreeTwovQTN contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="3"> 0.096 </kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNineNineFCScyThreeTwovQTN>

<kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNinewcOnevFNZxQTkR contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 33165745 </kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNinewcOnevFNZxQTkR>

<kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNinedOnebJdRwnZRsD contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="3"> 0.096 </kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNinedOnebJdRwnZRsD>

<kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNinektcThreegpOnesnlDZero contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 9562429 </kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNinektcThreegpOnesnlDZero>

<kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNineTwoCFiveqHcxJMNnSeven contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 9562429 </kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNineTwoCFiveqHcxJMNnSeven>

<kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNineSevenDcdnGMxmFiveWThree contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 37879243 </kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNineSevenDcdnGMxmFiveWThree>

<kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNineSevenZrzTwoSevencEightTpEightFive contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNineSevenZrzTwoSevencEightTpEightFive>

<kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNineTZeroxNmByVwwHq contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNineTZeroxNmByVwwHq>

<kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNineVnxCNNinepHhrrJ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 9562429 </kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNineVnxCNNinepHhrrJ>

<kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNinebZyhZerowTHNdQp contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 37879243 </kndi:ScheduleOfNotesReceivableZeroOneThreeOneZeroOneSevenFourNinebZyhZerowTHNdQp>

<kndi:ScheduleOfDetailedUnrelatedPartyNotesReceivableTableTextBlock contextRef="cx_01_January_2011_TO_31_December_2011">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" nowrap="nowrap">Amount($)</td> <td align="left" nowrap="nowrap" width="20%">Counter party</td> <td align="left" nowrap="nowrap" width="20%">Relationship</td> <td align="left" nowrap="nowrap" width="20%">Purpose of Loan</td> <td align="left" nowrap="nowrap" width="20%">Manner of settlement</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> 1) 4,713,498 </td> <td align="left" bgcolor="#e6efff" width="20%">Zhejiang XinNeng Auto System Co., Ltd.</td> <td align="left" bgcolor="#e6efff" width="20%">No relationship beyond loan</td> <td align="left" bgcolor="#e6efff" width="20%">Receive interest income</td> <td align="left" bgcolor="#e6efff" width="20%">Repaid in cash</td> </tr> <tr valign="top"> <td align="left"> 2) 33,165,745 </td> <td align="left" width="20%">Yongkang HuiFeng Guarantee Co., Ltd</td> <td align="left" width="20%">No relationship beyond loan</td> <td align="left" width="20%">Receive interest income</td> <td align="left" width="20%">Repaid part in cash and renewed on the due date</td> </tr> </table>

</kndi:ScheduleOfDetailedUnrelatedPartyNotesReceivableTableTextBlock>

<kndi:ScheduleOfDetailedUnrelatedPartyNotesReceivableZeroOneThreeOneZeroOneSevenFourNinePggThreeMNQSixSixlGl contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 4713498 </kndi:ScheduleOfDetailedUnrelatedPartyNotesReceivableZeroOneThreeOneZeroOneSevenFourNinePggThreeMNQSixSixlGl>

<kndi:ScheduleOfDetailedUnrelatedPartyNotesReceivableZeroOneThreeOneZeroOneSevenFourNinelZeroOnePFOnexySSvFour contextRef="cx_01_January_2011_TO_31_December_2011" unitRef="usd" decimals="0"> 33165745 </kndi:ScheduleOfDetailedUnrelatedPartyNotesReceivableZeroOneThreeOneZeroOneSevenFourNinelZeroOnePFOnexySSvFour>

<kndi:ScheduleOfDetailedUnrelatedPartyNotesReceivableTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left">Amount($)</td> <td align="left" width="20%">Counter party</td> <td align="left" width="20%">Relationship</td> <td align="left" width="20%">Purpose of Loan</td> <td align="left" width="20%">Manner of settlement</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> 3) 9,562,429 </td> <td align="left" bgcolor="#e6efff" width="20%">Yongkang HuiFeng Guarantee Co., Ltd</td> <td align="left" bgcolor="#e6efff" width="20%">No relationship beyond loan</td> <td align="left" bgcolor="#e6efff" width="20%">Receive interest income</td> <td align="left" bgcolor="#e6efff" width="20%">Not Due</td> </tr> </table>

</kndi:ScheduleOfDetailedUnrelatedPartyNotesReceivableTableTextBlock>

<kndi:ScheduleOfDetailedUnrelatedPartyNotesReceivableZeroOneThreeOneZeroOneSevenFourNinesdcBMXsThreedVLy contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 9562429 </kndi:ScheduleOfDetailedUnrelatedPartyNotesReceivableZeroOneThreeOneZeroOneSevenFourNinesdcBMXsThreedVLy>

<kndi:LandUseRightsTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 12 – LAND USE RIGHTS Land use rights consist of the following: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Cost of land use rights</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 15,697,132 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 11,997,512 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Less: Accumulated amortization</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (1,359,441 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (1,004,743 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Land use rights, net</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 14,337,691 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 10,992,769 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table> As of December 31, 2012 and 2011, the net book value of land use rights pledged as collateral for the Company’s bank loans was $7,313,642 and $4,057,640 respectively. Also see Note 15. As of December 31, 2012 and 2011, the net book value of land use rights pledged as collateral for bank loans borrowed by Zhejiang Mengdeli Electric Co., Ltd (“ZMEC”), an unrelated party of the Company was $3,500,426 and $6,935,129. Also see Notes 20. It is a common business practice among companies in the region of China where Kandi is located to exchange guarantees for bank debt with no consideration given. It is considered a “favor for favor” business practice and is commonly required by the lending banks as in these cases. ZMEC has provided a guarantee for certain of the Company’s bank loans. As of December 31, 2012, ZMEC had guaranteed bank loan of the Company for a total of $15,515,904. In exchange, the Company provided guarantees for bank loans or notes being borrowed by ZMEC and pledged the Company’s assets for ZMEC’s bank loans. Also see Note 15 and Note 23. The amortization expense for the years ended December 31, 2012 and 2011 was $346,761 and $256,884, respectively. Amortization expense for the next five years and thereafter is as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" bgcolor="#e6efff">2013</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 346,761 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">2014</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 346,761 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">2015</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 346,761 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">2016</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 346,761 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">2017</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 346,761 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Thereafter</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 12,603,886 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Total</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 14,337,691 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table>

</kndi:LandUseRightsTextBlock>

<kndi:ScheduleOfLandUseRights contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Cost of land use rights</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 15,697,132 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 11,997,512 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Less: Accumulated amortization</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (1,359,441 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (1,004,743 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Land use rights, net</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 14,337,691 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 10,992,769 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table>

</kndi:ScheduleOfLandUseRights>

<kndi:ScheduleOfLandUseRightsZeroOneThreeOneZeroOneSevenFourNineOneOnePFourDfEightqfPrZero contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 15697132 </kndi:ScheduleOfLandUseRightsZeroOneThreeOneZeroOneSevenFourNineOneOnePFourDfEightqfPrZero>

<kndi:ScheduleOfLandUseRightsZeroOneThreeOneZeroOneSevenFourNineZzlDThreeLFiveSevenXNRq contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 11997512 </kndi:ScheduleOfLandUseRightsZeroOneThreeOneZeroOneSevenFourNineZzlDThreeLFiveSevenXNRq>

<kndi:ScheduleOfLandUseRightsZeroOneThreeOneZeroOneSevenFourNineTSvSevenrFourThThreeqRH contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -1359441 </kndi:ScheduleOfLandUseRightsZeroOneThreeOneZeroOneSevenFourNineTSvSevenrFourThThreeqRH>

<kndi:ScheduleOfLandUseRightsZeroOneThreeOneZeroOneSevenFourNineZsyKqyZeroTwoKdgH contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -1004743 </kndi:ScheduleOfLandUseRightsZeroOneThreeOneZeroOneSevenFourNineZsyKqyZeroTwoKdgH>

<kndi:ScheduleOfLandUseRightsZeroOneThreeOneZeroOneSevenFourNineCtCtThreekTCTTwoMh contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 14337691 </kndi:ScheduleOfLandUseRightsZeroOneThreeOneZeroOneSevenFourNineCtCtThreekTCTTwoMh>

<kndi:ScheduleOfLandUseRightsZeroOneThreeOneZeroOneSevenFourNineFourZerodLPwZQQcDD contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 10992769 </kndi:ScheduleOfLandUseRightsZeroOneThreeOneZeroOneSevenFourNineFourZerodLPwZQQcDD>

<kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" bgcolor="#e6efff">2013</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 346,761 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">2014</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 346,761 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">2015</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 346,761 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">2016</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 346,761 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">2017</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 346,761 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Thereafter</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 12,603,886 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Total</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 14,337,691 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table>

</kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseTableTextBlock>

<kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineKTRfkFSevenBSevenFiveMT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 346761 </kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineKTRfkFSevenBSevenFiveMT>

<kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineXntLFiveHMQpSevenxp contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 346761 </kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineXntLFiveHMQpSevenxp>

<kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineFiveThreeOneFourTpFFiveHGNineg contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 346761 </kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineFiveThreeOneFourTpFFiveHGNineg>

<kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineThreePtmcThreeFzbTMTwo contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 346761 </kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineThreePtmcThreeFzbTMTwo>

<kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineXcCFiveKrTlVRFives contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 346761 </kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineXcCFiveKrTlVRFives>

<kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineWvDWOnehEightXhZSevenF contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 12603886 </kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineWvDWOnehEightXhZSevenF>

<kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineNFRXNbZeroWTcXN contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 14337691 </kndi:ScheduleOfLandUseRightsExpectedAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineNFRXNbZeroWTcXN>

<kndi:LandUseRightsZeroOneThreeOneZeroOneSevenFourNineJHMqqDHgXdnt contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 7313642 </kndi:LandUseRightsZeroOneThreeOneZeroOneSevenFourNineJHMqqDHgXdnt>

<kndi:LandUseRightsZeroOneThreeOneZeroOneSevenFourNineZcDTxCxFourJPNT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4057640 </kndi:LandUseRightsZeroOneThreeOneZeroOneSevenFourNineZcDTxCxFourJPNT>

<kndi:LandUseRightsZeroOneThreeOneZeroOneSevenFourNinezqFiveWSixGnXFoursqK contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3500426 </kndi:LandUseRightsZeroOneThreeOneZeroOneSevenFourNinezqFiveWSixGnXFoursqK>

<kndi:LandUseRightsZeroOneThreeOneZeroOneSevenFourNineqSevenyfWkdWTwofpQ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 6935129 </kndi:LandUseRightsZeroOneThreeOneZeroOneSevenFourNineqSevenyfWkdWTwofpQ>

<kndi:LandUseRightsZeroOneThreeOneZeroOneSevenFourNineThreeKKEightSKSZeroXtTm contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 15515904 </kndi:LandUseRightsZeroOneThreeOneZeroOneSevenFourNineThreeKKEightSKSZeroXtTm>

<kndi:LandUseRightsZeroOneThreeOneZeroOneSevenFourNinezNineJrCsTEightBfNineD contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 346761 </kndi:LandUseRightsZeroOneThreeOneZeroOneSevenFourNinezNineJrCsTEightBfNineD>

<kndi:LandUseRightsZeroOneThreeOneZeroOneSevenFourNineMSixRlcVfJcWdN contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 256884 </kndi:LandUseRightsZeroOneThreeOneZeroOneSevenFourNineMSixRlcVfJcWdN>

<us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 13 – PLANT AND EQUIPMENT Plant and equipment consist of the following: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> December 31, 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> December 31, 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">At cost:</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Buildings</td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 14,204,698 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 13,698,216 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Machinery and equipment</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 10,396,243 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 10,138,064 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Office equipment</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 230,073 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 199,021 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Motor vehicles</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 255,648 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 246,243 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Moulds</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 33,947,746 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 15,286,217 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 59,034,408 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 39,567,761 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Less : Accumulated depreciation</td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Buildings</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (2,439,546 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (1,949,251 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left">Machinery and equipment</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (9,154,890 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (8,032,798 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Office equipment</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (163,833 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (131,813 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left">Motor vehicles</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (200,741 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (175,578 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Moulds</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> (11,349,658 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> (8,296,428 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> (23,308,668 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> (18,585,868 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Plant and equipment, net</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 35,725,740 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 20,981,893 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table> As of December 31, 2012 and 2011, the net book value of plant and equipment pledged as collateral for the Company’s bank loans was $8,711,583 and $7,124,618, respectively. As of December 31, 2012 and 2011, the net book value of plant and equipment pledged as collateral for bank loans borrowed by Zhejiang Mengdeli Electric Co., Ltd. (“ZMEC”), an unrelated party of the Company was $2,834,569 and $4,624,347. Also see Note 23. Also see Note 15. Depreciation expense for the years ended December 31, 2012 and 2011 was $4,577,092 and $4,439,306, respectively.

</us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock>

<us-gaap:PropertyPlantAndEquipmentTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> December 31, 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> December 31, 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">At cost:</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Buildings</td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 14,204,698 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 13,698,216 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Machinery and equipment</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 10,396,243 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 10,138,064 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Office equipment</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 230,073 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 199,021 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Motor vehicles</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 255,648 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 246,243 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Moulds</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 33,947,746 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 15,286,217 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 59,034,408 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 39,567,761 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Less : Accumulated depreciation</td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Buildings</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (2,439,546 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (1,949,251 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left">Machinery and equipment</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (9,154,890 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (8,032,798 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Office equipment</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (163,833 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (131,813 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left">Motor vehicles</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (200,741 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (175,578 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Moulds</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> (11,349,658 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> (8,296,428 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> (23,308,668 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> (18,585,868 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Plant and equipment, net</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 35,725,740 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 20,981,893 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table>

</us-gaap:PropertyPlantAndEquipmentTextBlock>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinehDCOnetlJyOnePQB contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 14204698 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinehDCOnetlJyOnePQB>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinexrXlNRCgLLHX contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 13698216 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinexrXlNRCgLLHX>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinexPQWGmhfmLVb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 10396243 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinexPQWGmhfmLVb>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineyFourscDlnWCZrS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 10138064 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineyFourscDlnWCZrS>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinepJDXOnexwxBEightTFive contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 230073 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinepJDXOnexwxBEightTFive>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinexNinetGHWVrThreemEightX contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 199021 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinexNinetGHWVrThreemEightX>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineJCWTZeroFourZeroxcttD contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 255648 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineJCWTZeroFourZeroxcttD>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineTRFdgFivezrCOneZeroZero contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 246243 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineTRFdgFivezrCOneZeroZero>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinerxMMfmXFourpOnerN contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 33947746 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinerxMMfmXFourpOnerN>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineOnepJvLlzXlTTSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 15286217 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineOnepJvLlzXlTTSix>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineJEightTnvHBWxKfTwo contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 59034408 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineJEightTnvHBWxKfTwo>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinesSvThreeHJPyRgTw contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 39567761 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinesSvThreeHJPyRgTw>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineGGwTSixSevenThreeFourGSixTFour contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -2439546 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineGGwTSixSevenThreeFourGSixTFour>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineQyXQlxlRwrXy contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -1949251 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineQyXQlxlRwrXy>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineyltSevenPkkThreeTwocBThree contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -9154890 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineyltSevenPkkThreeTwocBThree>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineOnefyvhMZSixTwEightFive contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -8032798 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineOnefyvhMZSixTwEightFive>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinehgQZFiveZeroPNSSixVy contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -163833 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinehgQZFiveZeroPNSSixVy>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinesNinevTwodSevenBPqlmSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -131813 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinesNinevTwodSevenBPqlmSix>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinelgKySOneXtbbvl contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -200741 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinelgKySOneXtbbvl>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinecmRrwRDSevengfSixS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -175578 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinecmRrwRDSevengfSixS>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineVhNinefzzsNZLkv contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -11349658 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineVhNinefzzsNZLkv>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinesTKTsVskSixmNb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -8296428 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinesTKTsVskSixmNb>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineFNinenmTwonPLtkbm contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -23308668 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineFNinenmTwonPLtkbm>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineWOneFRThreeZBLTwzg contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -18585868 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineWOneFRThreeZBLTwzg>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinewvvKvVbOneqdCN contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 35725740 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinewvvKvVbOneqdCN>

<kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineZerosktPSevencFfthc contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 20981893 </kndi:ScheduleOfPlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineZerosktPSevencFfthc>

<kndi:PlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineDdWFourFiveXRnOneJFourN contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 8711583 </kndi:PlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineDdWFourFiveXRnOneJFourN>

<kndi:PlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineTTwoRZeronJzSixzhcn contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 7124618 </kndi:PlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineTTwoRZeronJzSixzhcn>

<kndi:PlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinedzfVPDWslbhb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2834569 </kndi:PlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinedzfVPDWslbhb>

<kndi:PlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinegkJPSixKHrdtlT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4624347 </kndi:PlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNinegkJPSixKHrdtlT>

<kndi:PlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineNcKsPxmXhGyd contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4577092 </kndi:PlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineNcKsPxmXhGyd>

<kndi:PlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineppXkMBbHHfJg contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4439306 </kndi:PlantAndEquipmentZeroOneThreeOneZeroOneSevenFourNineppXkMBbHHfJg>

<us-gaap:RelatedPartyTransactionsDisclosureTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 14 - DUE TO/FROM RELATED PARTIES Due to Related Party <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" width="12%"> 2012 </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">ELIL(a)</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 841,251 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 841,251 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Total due to a related party</td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 841,251 </td> <td align="left" width="2%"> </td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 841,251 </td> <td align="left" width="2%"> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%">(a)</td> <td> In connection with the share exchange transaction, which took place on June 29, 2007, between Stone Mountain Resources, Inc., a Delaware corporation (“Stone Mountain”), Continental Development Ltd, a Hong Kong corporation, and ExcelVantage Group Limited, a British Virgin Islands company, certain of the expenses incurred in the United States in connection with the transaction were paid on behalf of Stone Mountain by Ever Lotts Investment Limited (“ELIL”), an entity set up for this purpose by certain shareholders of Stone Mountain. As of December 31, 2012 and 2011, ELIL had paid $841,251 and $841,251, respectively, for expenses in connection with the share exchange transaction. </td> </tr> </table>

</us-gaap:RelatedPartyTransactionsDisclosureTextBlock>

<us-gaap:ScheduleOfRelatedPartyTransactionsTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" width="12%"> 2012 </td> <td align="center" width="2%"> </td> <td align="center" width="1%"> </td> <td align="center" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">ELIL(a)</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 841,251 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 841,251 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Total due to a related party</td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 841,251 </td> <td align="left" width="2%"> </td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 841,251 </td> <td align="left" width="2%"> </td> </tr> </table>

</us-gaap:ScheduleOfRelatedPartyTransactionsTableTextBlock>

<kndi:ScheduleOfRelatedPartyTransactionsZeroOneThreeOneZeroOneSevenFourNinefTCLszFpvwvK contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 841251 </kndi:ScheduleOfRelatedPartyTransactionsZeroOneThreeOneZeroOneSevenFourNinefTCLszFpvwvK>

<kndi:ScheduleOfRelatedPartyTransactionsZeroOneThreeOneZeroOneSevenFourNineThreevEightSixTpshDBdFour contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 841251 </kndi:ScheduleOfRelatedPartyTransactionsZeroOneThreeOneZeroOneSevenFourNineThreevEightSixTpshDBdFour>

<kndi:ScheduleOfRelatedPartyTransactionsZeroOneThreeOneZeroOneSevenFourNineHWgFivetOnepcOneFourlw contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 841251 </kndi:ScheduleOfRelatedPartyTransactionsZeroOneThreeOneZeroOneSevenFourNineHWgFivetOnepcOneFourlw>

<kndi:ScheduleOfRelatedPartyTransactionsZeroOneThreeOneZeroOneSevenFourNinehqRHnhvKcdby contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 841251 </kndi:ScheduleOfRelatedPartyTransactionsZeroOneThreeOneZeroOneSevenFourNinehqRHnhvKcdby>

<us-gaap:ShortTermDebtTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 15 – SHORT-TERM BANK LOANS Short-term loans are summarized as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Loans from China Communication Bank-Jinhua Branch </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Monthly interest only payments at 7.87% per annum, due September 19, 2012, guaranteed by Kandi Investment Group Co. </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 785,583 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 7.50% per annum, due December 24, 2013 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 474,977 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Loans from Commercial Bank-Jiangnan Branch </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Monthly interest only payments at 5.81% per annum, due January 3, 2012, guaranteed by Zhejiang Kangli Metal Manufacturing Company, Mr. Hu Xiaoming, Lv Qingjiang, and Ms. Ling Yueping. and pledged by the assets of Jingdezheng De’er Investment Industrial Co., Ltd. </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3,142,332 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 6.56% per annum, due October 15, 2012, guaranteed by Mr. Hu Xiaoming, and Ms. Ling Yueping, and secured by Company’s assets. Also see Note 12 and Note 13. </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,571,166 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Monthly interest only payments at 6.89% per annum, due December 5, 2012, secured by Company’s asset. Also see Note 12 and Note 13. </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 785,583 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 6.89% per annum, due January 5, 2013, guaranteed by Zhejiang Kangli Metal Manufacturing Company, Mr. Hu Xiaoming, Ms. Ling Jiajia, and Ms. Ling Yueping. and pledged by the assets of Jingdezheng De’er Investment Industrial Co., Ltd. (subsequently repaid on due date) </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,166,511 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Monthly interest only payments at 6.30% per annum, due October 10, 2013, guaranteed by Mr. Hu Xiaoming, and Ms. Ling Yueping, and pledged by the assets of the Company. </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,583,256 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 6.30% per annum, due November 25, 2013, guaranteed by Mr. Hu Xiaoming, and Ms. Ling Yueping, and pledged by the assets of the Company. </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 791,628 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Loans from Huaxia Bank </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 7.22% per annum, due September 23, 2012, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Zhejiang Kangli Metal Manufacturing Company and Kandi Investment Group Co. Also see Note 12 and Note 13. </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 4,399,265 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Loans from China Ever-bright Bank </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Interest only payment at 6.71% per annum, due February 15, 2012. </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,142,332 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 6.10% per annum, due May 15, 2012, secured by the Company’s time deposit. Also see Note 6. </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 2,121,073 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 7.74% per annum, due August 27, 2012, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Nanlong Group Co., Ltd. and Zhejiang Mengdeli Electric Co., Ltd. Also see Note 12 and Note 13. </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 4,713,498 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 7.74% per annum, due August 27, 2012, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming, Nanlong Group Co., Ltd. and Zhejiang Mengdeli Electric Co., Ltd. Also see Note 12 and Note 13. </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 4,713,498 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 6.94% per annum, due January 25, 2013, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming, Nanlong Group Co., Ltd. and Zhejiang Mengdeli Electric Co., Ltd. Also see Note 12 and Note 13. (subsequently repaid on due date) </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 4,749,766 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 6.94% per annum, due February 13, 2013, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming, Nanlong Group Co., Ltd. and Zhejiang Mengdeli Electric Co., Ltd. Also see Note 12 and Note 13. (subsequently repaid on due date) </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 4,749,766 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 7.08% per annum, due December 4, 2013, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming, Mr. Hu Wangyuan, Nanlong Group Co., Ltd. and Zhejiang Mengdeli Electric Co., Ltd. Also see Note 12 and Note 13. </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 2,849,860 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Loans from Shanghai Pudong Development Bank </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 6.71% per annum, due June 26, 2012, secured by the property of Ms. Ling Yueping, guaranteed by Nanlong Group Co., Ltd. and Mr. Hu Xiaoming </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3,142,332 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 6.94% per annum, due June 27, 2013, secured by the property of Ms. Ling Yueping, guaranteed by Yongkang KangBang auto parts Co., Ltd. and Mr. Hu Xiaoming </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,166,511 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 6.60% per annum, due July 18, 2013, secured by the property of Ms. Ling Yueping, guaranteed by Yongkang KangBang auto parts Co., Ltd. and Mr. Hu Xiaoming </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3,166,511 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Loans from Bank of Shanghai </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 6.56% per annum, due December 4, 2012, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Zhejiang Kangli Metal Manufacturing Company and Zhejiang Taiping Shengshi Industrial Co., Ltd. </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 4,713,498 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 6.60% per annum, due December 26, 2013, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Zhejiang Kangli Metal Manufacturing Company and Nanlong Group Co., Ltd. </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 4,749,766 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Loans from China Ever-growing Bank </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 7.57% per annum, due April 27, 2012, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Zhejiang Shuguang industrial Co., Ltd. and Zhejiang Mengdeli Electric Company. </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,142,332 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 7.57% per annum, due April 24, 2013, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Zhejiang Shuguang industrial Co., Ltd. and Zhejiang Mengdeli Electric Company. </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 3,166,511 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Total </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 32,615,063 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 36,372,492 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table> Short term bank loan interest expense for the years ended December 31, 2012 and 2011 was $2,556,967, and $2,030,228, respectively. As of December 31, 2012, the aggregate amount of short-term loans that were guaranteed or secured by various third parties was $32,140,086. The breakdown is as follows: - $15,515,904 is guaranteed by Zhejiang Mengdeli Electric Co Ltd (“ZMEC”), whose bank loans of $4,369,785 are secured by a pledge, or by the Company’s plant and equipment and the land use right for which net book values are $2,834,569, and $3,500,426, respectively. Also see Note 23. - $7,916,277 is guaranteed by Zhejiang Kangli Metal Manufacturing Company, whose bank loans of $4,749,766 is guaranteed by the Company. Also see Note 23. - $3,166,511 is guaranteed by Zhejiang Shuguang industrial Co., Ltd., whose bank loans of $4,749,766 is guaranteed by the Company. Also see Note 23. - $17,099,159 is guaranteed by Nanlong Group Co., Ltd. whose bank loans of $9,499,533 is also guaranteed by the Company. Also see Note 23. - $6,333,022 is guaranteed by Yongkang KangBang auto parts Co., Ltd. - $3,166,511 is secured by the assets of Jingdezheng De’er Investment Industrial Co., Ltd. It is a common business practice among companies in the region of China where Kandi is located to exchange guarantees for bank debt with no consideration given. It is considered a “favor for favor” business practice and is commonly required by the lending banks as in these cases.

</us-gaap:ShortTermDebtTextBlock>

<us-gaap:ScheduleOfShortTermDebtTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Loans from China Communication Bank-Jinhua Branch </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Monthly interest only payments at 7.87% per annum, due September 19, 2012, guaranteed by Kandi Investment Group Co. </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 785,583 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 7.50% per annum, due December 24, 2013 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 474,977 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Loans from Commercial Bank-Jiangnan Branch </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Monthly interest only payments at 5.81% per annum, due January 3, 2012, guaranteed by Zhejiang Kangli Metal Manufacturing Company, Mr. Hu Xiaoming, Lv Qingjiang, and Ms. Ling Yueping. and pledged by the assets of Jingdezheng De’er Investment Industrial Co., Ltd. </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3,142,332 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 6.56% per annum, due October 15, 2012, guaranteed by Mr. Hu Xiaoming, and Ms. Ling Yueping, and secured by Company’s assets. Also see Note 12 and Note 13. </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,571,166 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Monthly interest only payments at 6.89% per annum, due December 5, 2012, secured by Company’s asset. Also see Note 12 and Note 13. </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 785,583 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 6.89% per annum, due January 5, 2013, guaranteed by Zhejiang Kangli Metal Manufacturing Company, Mr. Hu Xiaoming, Ms. Ling Jiajia, and Ms. Ling Yueping. and pledged by the assets of Jingdezheng De’er Investment Industrial Co., Ltd. (subsequently repaid on due date) </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,166,511 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Monthly interest only payments at 6.30% per annum, due October 10, 2013, guaranteed by Mr. Hu Xiaoming, and Ms. Ling Yueping, and pledged by the assets of the Company. </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,583,256 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 6.30% per annum, due November 25, 2013, guaranteed by Mr. Hu Xiaoming, and Ms. Ling Yueping, and pledged by the assets of the Company. </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 791,628 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Loans from Huaxia Bank </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 7.22% per annum, due September 23, 2012, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Zhejiang Kangli Metal Manufacturing Company and Kandi Investment Group Co. Also see Note 12 and Note 13. </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 4,399,265 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Loans from China Ever-bright Bank </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Interest only payment at 6.71% per annum, due February 15, 2012. </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,142,332 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 6.10% per annum, due May 15, 2012, secured by the Company’s time deposit. Also see Note 6. </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 2,121,073 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 7.74% per annum, due August 27, 2012, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Nanlong Group Co., Ltd. and Zhejiang Mengdeli Electric Co., Ltd. Also see Note 12 and Note 13. </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 4,713,498 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 7.74% per annum, due August 27, 2012, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming, Nanlong Group Co., Ltd. and Zhejiang Mengdeli Electric Co., Ltd. Also see Note 12 and Note 13. </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 4,713,498 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 6.94% per annum, due January 25, 2013, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming, Nanlong Group Co., Ltd. and Zhejiang Mengdeli Electric Co., Ltd. Also see Note 12 and Note 13. (subsequently repaid on due date) </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 4,749,766 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 6.94% per annum, due February 13, 2013, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming, Nanlong Group Co., Ltd. and Zhejiang Mengdeli Electric Co., Ltd. Also see Note 12 and Note 13. (subsequently repaid on due date) </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 4,749,766 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 7.08% per annum, due December 4, 2013, secured by the assets of the Company, guaranteed by Mr. Hu Xiaoming, Mr. Hu Wangyuan, Nanlong Group Co., Ltd. and Zhejiang Mengdeli Electric Co., Ltd. Also see Note 12 and Note 13. </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 2,849,860 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Loans from Shanghai Pudong Development Bank </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 6.71% per annum, due June 26, 2012, secured by the property of Ms. Ling Yueping, guaranteed by Nanlong Group Co., Ltd. and Mr. Hu Xiaoming </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3,142,332 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 6.94% per annum, due June 27, 2013, secured by the property of Ms. Ling Yueping, guaranteed by Yongkang KangBang auto parts Co., Ltd. and Mr. Hu Xiaoming </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,166,511 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 6.60% per annum, due July 18, 2013, secured by the property of Ms. Ling Yueping, guaranteed by Yongkang KangBang auto parts Co., Ltd. and Mr. Hu Xiaoming </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3,166,511 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Loans from Bank of Shanghai </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 6.56% per annum, due December 4, 2012, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Zhejiang Kangli Metal Manufacturing Company and Zhejiang Taiping Shengshi Industrial Co., Ltd. </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 4,713,498 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 6.60% per annum, due December 26, 2013, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Zhejiang Kangli Metal Manufacturing Company and Nanlong Group Co., Ltd. </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 4,749,766 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Loans from China Ever-growing Bank </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Monthly interest only payments at 7.57% per annum, due April 27, 2012, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Zhejiang Shuguang industrial Co., Ltd. and Zhejiang Mengdeli Electric Company. </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,142,332 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Monthly interest only payments at 7.57% per annum, due April 24, 2013, guaranteed by Mr. Hu Xiaoming, Ms. Ling Yueping, Zhejiang Shuguang industrial Co., Ltd. and Zhejiang Mengdeli Electric Company. </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 3,166,511 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> Total </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 32,615,063 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 36,372,492 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table>

</us-gaap:ScheduleOfShortTermDebtTextBlock>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinegmPMRgSixZeroyNinecr contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0787 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinegmPMRgSixZeroyNinecr>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinexfXzDLgNineZeroMpr contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinexfXzDLgNineZeroMpr>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineEightwEightFKkFourqkPKb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 785583 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineEightwEightFKkFourqkPKb>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinezsDJTDFiveOnezkfFour contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0750 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinezsDJTDFiveOnezkfFour>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinenEightWSevenTEightfQtmTr contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 474977 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinenEightWSevenTEightfQtmTr>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineNineLSixXfwsDGPNineX contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineNineLSixXfwsDGPNineX>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinevQDcNineTkxyTwolb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0581 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinevQDcNineTkxyTwolb>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineZeroTwoTwoThreeFivegJJZbJOne contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineZeroTwoTwoThreeFivegJJZbJOne>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinetZBZOnedBVtbhFive contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3142332 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinetZBZOnedBVtbhFive>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinezBFourbmzFGHFourzJ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0656 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinezBFourbmzFGHFourzJ>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinePJTPThreeXJPPNxn contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinePJTPThreeXJPPNxn>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineXFivenxRLZWkmBS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1571166 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineXFivenxRLZWkmBS>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineLSevenQTwohbThreemTGhOne contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0689 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineLSevenQTwohbThreemTGhOne>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineZerovSixfSixcCySixBDG contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineZerovSixfSixcCySixBDG>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinetNineVNnKHhNXCThree contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 785583 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinetNineVNnKHhNXCThree>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineFiveBOneOneTVEightOneBXsSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0689 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineFiveBOneOneTVEightOneBXsSix>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineFourTvQGNTpSevenpwD contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3166511 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineFourTvQGNTpSevenpwD>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineSixpCxTFourWDMrhq contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineSixpCxTFourWDMrhq>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinebfCHDMrNineBfSevenN contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0630 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinebfCHDMrNineBfSevenN>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineXTFivewTmkzOnekSSeven contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1583256 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineXTFivewTmkzOnekSSeven>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineThreeTvxLNGgsyTwos contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineThreeTvxLNGgsyTwos>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineVEightfQFourmFiveZHVfs contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0630 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineVEightfQFourmFiveZHVfs>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinetNEightBZeroShpDCQt contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 791628 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinetNEightBZeroShpDCQt>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinepGZSDZerodVHzvs contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinepGZSDZerodVHzvs>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineCcThreeWzmFNNlln contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0722 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineCcThreeWzmFNNlln>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineFivedGKNineKtMhTxQ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineFivedGKNineKtMhTxQ>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinetBZeroQzbfRJpcd contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4399265 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinetBZeroQzbfRJpcd>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineTpJOneKFivennJhFivek contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0671 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineTpJOneKFivennJhFivek>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineTCFivehmhwNsSixXL contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineTCFivehmhwNsSixXL>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinesNgwzdGOneqNinefG contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3142332 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinesNgwzdGOneqNinefG>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinefXpcMqnQLKcs contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0610 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinefXpcMqnQLKcs>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineGrdFnGwfrEightZn contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineGrdFnGwfrEightZn>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineWZSevenTwoFourGrMOnemWJ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2121073 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineWZSevenTwoFourGrMOnemWJ>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinefThreeOneTpkfRSixgBg contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0774 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinefThreeOneTpkfRSixgBg>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineTwoSixtZerobXFTBhZeroZ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineTwoSixtZerobXFTBhZeroZ>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineTFourbxpDrFVnNineF contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4713498 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineTFourbxpDrFVnNineF>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinehkBwThreevFSixZeroCZw contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0774 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinehkBwThreevFSixZeroCZw>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinexVkRTXdGxBqD contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinexVkRTXdGxBqD>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinemTCzZFNineMxrNx contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4713498 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinemTCzZFNineMxrNx>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineDEightFourxcrxZeroNFiveFivex contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0694 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineDEightFourxcrxZeroNFiveFivex>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinepSevenFOnebGPPZThreeDM contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4749766 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinepSevenFOnebGPPZThreeDM>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinekVTNNinewNineNineFourgdZero contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinekVTNNinewNineNineFourgdZero>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineLZQOneTwoRnZeroLGHv contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0694 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineLZQOneTwoRnZeroLGHv>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinerTnEightvdTznbOneV contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4749766 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinerTnEightvdTznbOneV>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinevcHSevenBvSixGFourROneS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinevcHSevenBvSixGFourROneS>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinedThreeOneFFFiveTCNTFX contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0708 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinedThreeOneFFFiveTCNTFX>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineRwbgOnetmSevenhTwoGP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2849860 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineRwbgOnetmSevenhTwoGP>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinemNSvSZeroMHZeroJTW contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinemNSvSZeroMHZeroJTW>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinexwSevenglMzTwoTZdW contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0671 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinexwSevenglMzTwoTZdW>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineQhbXpdOneFourThreeFiveVK contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineQhbXpdOneFourThreeFiveVK>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinefxGyWDpgnNineWB contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3142332 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinefxGyWDpgnNineWB>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinetThreewypydvTGOneh contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0694 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinetThreewypydvTGOneh>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinegSGSBpzsykRZ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3166511 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinegSGSBpzsykRZ>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineSevenWqdyrvTFiverCZero contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineSevenWqdyrvTFiverCZero>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinezwQsSrPRGXcOne contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0660 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinezwQsSrPRGXcOne>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineCqOneKvfQbKqThreeZ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3166511 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineCqOneKvfQbKqThreeZ>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineftFCDHfSixFOnemp contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineftFCDHfSixFOnemp>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinexThreetOneThreeTdSMxnThree contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0656 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinexThreetOneThreeTdSMxnThree>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinehFourpKWNinezTLFivepL contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinehFourpKWNinezTLFivepL>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineFourFZZhlhHwZzV contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4713498 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineFourFZZhlhHwZzV>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinehWHLdcWFivegsdSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0660 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinehWHLdcWFivegsdSix>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinegtOneKWNineNfZeroEighttM contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4749766 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinegtOneKWNineNfZeroEighttM>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinewGThreeDLFivewykcVf contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinewGThreeDLFivewykcVf>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineWWckBSixGVNineTyB contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0757 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineWWckBSixGVNineTyB>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineWyJZwlGgZeroNineLC contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineWyJZwlGgZeroNineLC>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineThreeHrNTwNinemSevenFourThreeSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3142332 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineThreeHrNTwNinemSevenFourThreeSix>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinecDCpszGTfOneJC contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0757 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinecDCpszGTfOneJC>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineNhxvkftNineZeroMXH contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3166511 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineNhxvkftNineZeroMXH>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinenMFcMTSevenJmTwoKm contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNinenMFcMTSevenJmTwoKm>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineQNyZerofRwhEightwHb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 32615063 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineQNyZerofRwhEightwHb>

<kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineOnesTwoBncDNinedgEightNine contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 36372492 </kndi:ScheduleOfShorttermBankLoansZeroOneThreeOneZeroOneSevenFourNineOnesTwoBncDNinedgEightNine>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineNDSixVTwoFourhXPgTTwo contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2556967 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineNDSixVTwoFourhXPgTTwo>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNinelbsJTvFourkFourlcd contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2030228 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNinelbsJTvFourkFourlcd>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineFiveTThFSixTwoQFourRNinec contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 32140086 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineFiveTThFSixTwoQFourRNinec>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineynlBbbPvdBBs contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 15515904 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineynlBbbPvdBBs>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineQQhEightvJTmJpNz contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4369785 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineQQhEightvJTmJpNz>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineTzSevenDvkLdEightVsQ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2834569 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineTzSevenDvkLdEightVsQ>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineOneTwokCsTgqsTMEight contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3500426 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineOneTwokCsTgqsTMEight>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineWThreeVNineThreelrfFivehzL contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 7916277 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineWThreeVNineThreelrfFivehzL>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNinevWZyPFRTJWPS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4749766 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNinevWZyPFRTJWPS>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineScxVxvWhPVqh contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3166511 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineScxVxvWhPVqh>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineqdmzTwoEightPKGTwoRh contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4749766 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineqdmzTwoEightPKGTwoRh>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineVNFourmBZeroTNFyGK contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 17099159 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineVNFourmBZeroTNFyGK>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNinedxRzpZeroVbXgSEight contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 9499533 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNinedxRzpZeroVbXgSEight>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNinelFiveRVOneSevenTKsThreeWOne contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 6333022 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNinelFiveRVOneSevenTKsThreeWOne>

<kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineHHnyThlvcSqSeven contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3166511 </kndi:ShortTermBankLoansZeroOneThreeOneZeroOneSevenFourNineHHnyThlvcSqSeven>

<us-gaap:LongTermDebtTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 16 – NOTES PAYABLE By issuing bank note payables rather than paying cash to suppliers, the Company can defer the payments until the date the bank note payable is due. Simultaneously, the Company needs to deposit restricted cash in banks to back up the bank note payable, while the restricted cash deposited in banks will generate interest income Notes payable are summarized as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Bank acceptance notes:</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due January 19,2012</td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 149,262 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 14,140 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 15,712 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 37,708 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 15,712 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 17,283 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 15,712 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 14,140 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 7,856 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 6,285 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 15,712 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 15,712 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 7,856 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 31,423 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 9,741 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 9,427 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 10,998 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 31,423 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 51,848 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 47,135 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 15,712 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 4,713 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3,142 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,142 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 12,569 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 15,712 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3,142 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,142,332 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left">Due May 10, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 78,558 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Due May 10, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 157,117 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left">Due May 10, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 188,540 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Due May 10, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 94,270 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left">Due May 10, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 31,423 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Due June 19, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 235,675 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left">Due June 19, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,335,491 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Due March 26, 2013 (subsequently repaid on its due date)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,583,255 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left">Due March 26, 2013 (subsequently repaid on its due date)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,583,255 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Due June 24, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,166,511 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left">Due June 24, 2013</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6,333,023 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Due June 25, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 2,533,209 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left">Due June 25, 2013</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 10,132,835 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Subtotal</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 25,332,088 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 5,846,623 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Notes payable to unrelated companies:</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Due January 20, 2012 (Interest rate 6.0% per annum) </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 1,000 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Subtotal</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 1,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Total</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 25,332,088 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 5,847,623 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table> All the bank acceptance notes do not bear interest, but are subject to bank charges of 0.05% of the principal as commission on each transaction. Bank charges for notes payable were $20,246 and $17,781 in 2012 and 2011, respectively. Restricted cash of $9,499,533 is held as collateral for the following notes payable at December 31, 2012: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2013 (subsequently repaid on its due date)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,583,255 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2013 (subsequently repaid on its due date)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,583,255 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due June 24, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,166,511 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due June 24, 2013</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6,333,023 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due June 25, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 2,533,209 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due June 25, 2013</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 10,132,835 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Total</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 25,332,088 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table>

</us-gaap:LongTermDebtTextBlock>

<kndi:ScheduleOfNotesPayableTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Bank acceptance notes:</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due January 19,2012</td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 149,262 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 14,140 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 15,712 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 37,708 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 15,712 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 17,283 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 15,712 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 14,140 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 7,856 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 6,285 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 15,712 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 15,712 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 7,856 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 31,423 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 9,741 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 9,427 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 10,998 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 31,423 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 51,848 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 47,135 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 15,712 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 4,713 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3,142 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,142 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 12,569 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 15,712 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 3,142 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Due March 26, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,142,332 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left">Due May 10, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 78,558 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Due May 10, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 157,117 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left">Due May 10, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 188,540 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Due May 10, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 94,270 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left">Due May 10, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 31,423 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Due June 19, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 235,675 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left">Due June 19, 2012</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,335,491 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Due March 26, 2013 (subsequently repaid on its due date)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,583,255 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left">Due March 26, 2013 (subsequently repaid on its due date)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,583,255 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Due June 24, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,166,511 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left">Due June 24, 2013</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6,333,023 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Due June 25, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 2,533,209 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left">Due June 25, 2013</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 10,132,835 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Subtotal</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 25,332,088 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 5,846,623 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Notes payable to unrelated companies:</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left"> Due January 20, 2012 (Interest rate 6.0% per annum) </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 1,000 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Subtotal</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 1,000 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr> <td> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff">Total</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 25,332,088 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 5,847,623 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table>

</kndi:ScheduleOfNotesPayableTableTextBlock>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinellHGyNineTwoZeroSwNT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinellHGyNineTwoZeroSwNT>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFiveBOneTwoCTwoSevenJtTpNine contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 149262 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFiveBOneTwoCTwoSevenJtTpNine>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinezNineHSixyDpxFiverHTwo contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinezNineHSixyDpxFiverHTwo>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineEightRJTworJVWSixBMZ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 14140 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineEightRJTworJVWSixBMZ>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinesbzsHbCXSevenkTW contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinesbzsHbCXSevenkTW>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineJfcbMDZeroQJZerokS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 15712 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineJfcbMDZeroQJZerokS>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinevDWQmdTwoGLWyL contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinevDWQmdTwoGLWyL>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineSixTwohMtQLTwoTwoQPOne contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 37708 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineSixTwohMtQLTwoTwoQPOne>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineQZlVSixTCXmWdb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineQZlVSixTCXmWdb>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineZBMZeronSevenxlwwTwoP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 15712 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineZBMZeronSevenxlwwTwoP>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineTFivepLkTSevenDFvZM contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineTFivepLkTSevenDFvZM>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineLDvZSJgwtTTwoThree contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 17283 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineLDvZSJgwtTTwoThree>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineEighttxrWfMgnGGc contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineEighttxrWfMgnGGc>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineWdHSixSdJMJwZr contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 15712 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineWdHSixSdJMJwZr>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineTdDNKkWTwZCf contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineTdDNKkWTwZCf>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinekcqbsLLTvmXZero contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 14140 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinekcqbsLLTvmXZero>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineNineBVcmSixWwbgnC contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineNineBVcmSixWwbgnC>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinewThreewMThreeSevenbFiveDwQJ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 7856 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinewThreewMThreeSevenbFiveDwQJ>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFourWJFivedEighthhxZThreeh contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFourWJFivedEighthhxZThreeh>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinewqDEightTworGSevenOnezZeroZero contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 6285 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinewqDEightTworGSevenOnezZeroZero>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFiveDzfsVSixGfHfb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFiveDzfsVSixGfHfb>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFourJmdSevenTqcrrvQ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 15712 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFourJmdSevenTqcrrvQ>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinemJpvrkNSevenZVSixd contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinemJpvrkNSevenZVSixd>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineOnedFiveFSThreeSevenrdkPK contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 15712 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineOnedFiveFSThreeSevenrdkPK>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineRKXTwowDdSevenSevenxfFour contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineRKXTwowDdSevenSevenxfFour>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineZeroNBOneppqRLPPN contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 7856 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineZeroNBOneppqRLPPN>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineTThreebFivefEightbzfnThreem contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineTThreebFivefEightbzfnThreem>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinenFourNRhSixWFourRChL contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 31423 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinenFourNRhSixWFourRChL>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinebrThreeBgTqVJPgQ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinebrThreeBgTqVJPgQ>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineCzSWlTkMHNmr contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 9741 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineCzSWlTkMHNmr>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineNSixZeroNTNineQLZxfT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineNSixZeroNTNineQLZxfT>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineGmrsVdSevenZeroZyTp contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 9427 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineGmrsVdSevenZeroZyTp>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFiveThreeOneLwTGnnXHD contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFiveThreeOneLwTGnnXHD>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineZlRTwoZNineSixfBnSixx contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 10998 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineZlRTwoZNineSixfBnSixx>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinevDwgdTwovxFourSixcEight contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinevDwgdTwovxFourSixcEight>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineHJrpkDJCBxps contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 31423 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineHJrpkDJCBxps>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineDkWyFiveCOneZwTEightSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineDkWyFiveCOneZwTEightSix>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinebcJFourrwSlTwoHRg contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 51848 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinebcJFourrwSlTwoHRg>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineCFourpQScNMxKOneD contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineCFourpQScNMxKOneD>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFourHNQfpbgSevenzcH contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 47135 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFourHNQfpbgSevenzcH>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineMOneDKrHEightZeroVSwk contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineMOneDKrHEightZeroVSwk>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinewFivevSThreeFDmyThreepR contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 15712 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinewFivevSThreeFDmyThreepR>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFivexDTwoVqNinepkEightzH contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFivexDTwoVqNinepkEightzH>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineknGsPkvCzrEightZ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4713 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineknGsPkvCzrEightZ>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineGJEightLfbfsXgFourl contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineGJEightLfbfsXgFourl>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineEightNSevenQbTNineQfRqx contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3142 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineEightNSevenQbTNineQfRqx>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinextEightFiveWWbHFEightCg contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinextEightFiveWWbHFEightCg>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinexpThreeJRnPEightRSEightC contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3142 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinexpThreeJRnPEightRSEightC>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineNineSixkPSpHdNinefMh contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineNineSixkPSpHdNinefMh>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinevSFourSixcyVrLSevenLEight contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 12569 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinevSFourSixcyVrLSevenLEight>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineGFiveThreeTdxHPThreegXW contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineGFiveThreeTdxHPThreegXW>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinehHTgKrEightgtZerotb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 15712 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinehHTgKrEightgtZerotb>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFourSixPGMlSSevenptTwof contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFourSixPGMlSSevenptTwof>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineCKSixfbPNinebEightNFiver contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3142 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineCKSixfbPNinebEightNFiver>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFourfgcCMzZqRKn contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFourfgcCMzZqRKn>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinewsFiveGTTQNineHrEightR contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3142332 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinewsFiveGTTQNineHrEightR>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineWFkJHCSsGfgq contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineWFkJHCSsGfgq>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineEightlZrCPrzTwoNJy contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 78558 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineEightlZrCPrzTwoNJy>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinebXSgVSTlZMOneW contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinebXSgVSTlZMOneW>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineNineNineZerotfdnJPXwp contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 157117 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineNineNineZerotfdnJPXwp>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinekmwkpnSJSPzy contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinekmwkpnSJSPzy>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinevQhZerohpFourSixSOneqk contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 188540 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinevQhZerohpFourSixSOneqk>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineThreeTwosFiveCzBkOneNXSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineThreeTwosFiveCzBkOneNXSix>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineXSixBvLCvBFsTwoH contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 94270 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineXSixBvLCvBFsTwoH>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineDVpwqOnexpkFwl contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineDVpwqOnexpkFwl>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinelqytTKVXJTqT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 31423 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinelqytTKVXJTqT>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinefFClThhpQSqw contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinefFClThhpQSqw>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineKTrFivevdzNinemSbC contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 235675 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineKTrFivevdzNinemSbC>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinepSixMzXbwGhsFourFour contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinepSixMzXbwGhsFourFour>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineqvcQNCnlTWEightL contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1335491 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineqvcQNCnlTWEightL>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinegLLdVGThreeEightvQwc contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1583255 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinegLLdVGThreeEightvQwc>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineTwodFiveNinefbSevenqZeropLq contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineTwodFiveNinefbSevenqZeropLq>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineyShPBwWZEightfCOne contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1583255 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineyShPBwWZEightfCOne>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinelOnewbFiveqblFourPNineV contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinelOnewbFiveqblFourPNineV>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinescNineFLtThreeWTwoSevenhC contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3166511 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinescNineFLtThreeWTwoSevenhC>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineThreeTZerotlXBMJpgK contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineThreeTZerotlXBMJpgK>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineZsQnZerobSvBLOnev contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 6333023 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineZsQnZerobSvBLOnev>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinesZNinePBWvOnezXKN contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinesZNinePBWvOnezXKN>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinemJWlTTwoDTZeroQxd contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2533209 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinemJWlTTwoDTZeroQxd>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinenWNKtHXXTwoZpL contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinenWNKtHXXTwoZpL>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineNmZkOneTmVHkEightSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 10132835 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineNmZkOneTmVHkEightSix>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinePhkQMKWLTwosFV contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinePhkQMKWLTwosFV>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinePHBFwEightnDFourXkx contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 25332088 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinePHBFwEightnDFourXkx>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinePFOneVKGLmLOneRq contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 5846623 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinePFOneVKGLmLOneRq>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineKSixFourtCqRbrqSs contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.06 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineKSixFourtCqRbrqSs>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineMpnTwoNOneTzvgQSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineMpnTwoNOneTzvgQSix>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFourcLmwFiveDsTSixfC contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1000 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineFourcLmwFiveDsTSixfC>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineOneTfOneNinegsdTKdM contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineOneTfOneNinegsdTKdM>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinepThreeNSixLwSfTQQn contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1000 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNinepThreeNSixLwSfTQQn>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineHSevenxyFourqgkSevenhTX contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 25332088 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineHSevenxyFourqgkSevenhTX>

<kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineCtxEightSrEightFivepfHZero contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 5847623 </kndi:ScheduleOfNotesPayableZeroOneThreeOneZeroOneSevenFourNineCtxEightSrEightFivepfHZero>

<kndi:ScheduleOfNotesPayableRestrictedCashHeldAsCollateralTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due March 26, 2013 (subsequently repaid on its due date)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,583,255 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due March 26, 2013 (subsequently repaid on its due date)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,583,255 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due June 24, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 3,166,511 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due June 24, 2013</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6,333,023 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Due June 25, 2013</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 2,533,209 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Due June 25, 2013</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 10,132,835 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Total</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 25,332,088 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table>

</kndi:ScheduleOfNotesPayableRestrictedCashHeldAsCollateralTableTextBlock>

<kndi:ScheduleOfRestrictedCashHeldAsCollateralForNotesPayableZeroOneThreeOneZeroOneSevenFourNinewTFivemSevenNineXnNmmR contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1583255 </kndi:ScheduleOfRestrictedCashHeldAsCollateralForNotesPayableZeroOneThreeOneZeroOneSevenFourNinewTFivemSevenNineXnNmmR>

<kndi:ScheduleOfRestrictedCashHeldAsCollateralForNotesPayableZeroOneThreeOneZeroOneSevenFourNineXHrHFourkvMFiveFiveMP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1583255 </kndi:ScheduleOfRestrictedCashHeldAsCollateralForNotesPayableZeroOneThreeOneZeroOneSevenFourNineXHrHFourkvMFiveFiveMP>

<kndi:ScheduleOfRestrictedCashHeldAsCollateralForNotesPayableZeroOneThreeOneZeroOneSevenFourNineVBVstkTfXrThreeW contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3166511 </kndi:ScheduleOfRestrictedCashHeldAsCollateralForNotesPayableZeroOneThreeOneZeroOneSevenFourNineVBVstkTfXrThreeW>

<kndi:ScheduleOfRestrictedCashHeldAsCollateralForNotesPayableZeroOneThreeOneZeroOneSevenFourNinemTxdSevenQSRKFourEightS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 6333023 </kndi:ScheduleOfRestrictedCashHeldAsCollateralForNotesPayableZeroOneThreeOneZeroOneSevenFourNinemTxdSevenQSRKFourEightS>

<kndi:ScheduleOfRestrictedCashHeldAsCollateralForNotesPayableZeroOneThreeOneZeroOneSevenFourNinecxSFiveEightWNVSixlTg contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2533209 </kndi:ScheduleOfRestrictedCashHeldAsCollateralForNotesPayableZeroOneThreeOneZeroOneSevenFourNinecxSFiveEightWNVSixlTg>

<kndi:ScheduleOfRestrictedCashHeldAsCollateralForNotesPayableZeroOneThreeOneZeroOneSevenFourNinetZKMdJbFourDtCP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 10132835 </kndi:ScheduleOfRestrictedCashHeldAsCollateralForNotesPayableZeroOneThreeOneZeroOneSevenFourNinetZKMdJbFourDtCP>

<kndi:ScheduleOfRestrictedCashHeldAsCollateralForNotesPayableZeroOneThreeOneZeroOneSevenFourNineDJSixcNineOnetxRZerogL contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 25332088 </kndi:ScheduleOfRestrictedCashHeldAsCollateralForNotesPayableZeroOneThreeOneZeroOneSevenFourNineDJSixcNineOnetxRZerogL>

<kndi:NotesPayableZeroOneThreeOneZeroOneSevenFourNineqDyCZerondtcydl contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0005 </kndi:NotesPayableZeroOneThreeOneZeroOneSevenFourNineqDyCZerondtcydl>

<kndi:NotesPayableZeroOneThreeOneZeroOneSevenFourNineJmnctVWTyBThreeP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 20246 </kndi:NotesPayableZeroOneThreeOneZeroOneSevenFourNineJmnctVWTyBThreeP>

<kndi:NotesPayableZeroOneThreeOneZeroOneSevenFourNinerfkHEightcTKnwSevenf contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 17781 </kndi:NotesPayableZeroOneThreeOneZeroOneSevenFourNinerfkHEightcTKnwSevenf>

<kndi:NotesPayableZeroOneThreeOneZeroOneSevenFourNineSevenyNkqHTZeroSixCwb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 9499533 </kndi:NotesPayableZeroOneThreeOneZeroOneSevenFourNineSevenyNkqHTZeroSixCwb>

<kndi:BondPayableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 17 – BOND PAYABLE <table border="0" cellpadding="0" cellspacing="0" style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; " width="100%"> <tr valign="top"> <td align="left"> Due Date </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Face Value </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Coupon rate </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Interest record date </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Interest pay date </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> December 27, 2015 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="10%"> 12,666,044 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 12% </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" nowrap="nowrap" width="10%"> 27 December </td> <td align="left" bgcolor="#e6efff" nowrap="nowrap" width="2%"> </td> <td align="left" bgcolor="#e6efff" nowrap="nowrap" width="1%"> </td> <td align="right" bgcolor="#e6efff" nowrap="nowrap" width="10%"> 27 December </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr> <td> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Total face value </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="10%"> 12,666,044 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table> On December 27, 2012, we borrowed RMB80,000,000 ( $12,666,044) from China Ever-bright Securities Co. Ltd. pursuant to a bond issued to them by us. The maturity date is December 27, 2015 and no principal payments are required prior to maturity. The interest rate is 12% and interest is payable on December 27 in each of 2013, 2014 and 2015. The obligation is secured by an unrelated third party.

</kndi:BondPayableTextBlock>

<kndi:ScheduleOfBondPayableTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; " width="100%"> <tr valign="top"> <td align="left"> Due Date </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Face Value </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Coupon rate </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Interest record date </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="10%"> Interest pay date </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> December 27, 2015 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="10%"> 12,666,044 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 12% </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" nowrap="nowrap" width="10%"> 27 December </td> <td align="left" bgcolor="#e6efff" nowrap="nowrap" width="2%"> </td> <td align="left" bgcolor="#e6efff" nowrap="nowrap" width="1%"> </td> <td align="right" bgcolor="#e6efff" nowrap="nowrap" width="10%"> 27 December </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr> <td> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Total face value </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="10%"> 12,666,044 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table>

</kndi:ScheduleOfBondPayableTableTextBlock>

<kndi:ScheduleOfBondPayableZeroOneThreeOneZeroOneSevenFourNinetJEightlMGThreezlThreePz contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 12666044 </kndi:ScheduleOfBondPayableZeroOneThreeOneZeroOneSevenFourNinetJEightlMGThreezlThreePz>

<kndi:ScheduleOfBondPayableZeroOneThreeOneZeroOneSevenFourNineTwoTTZerohZKFGvMEight contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.12 </kndi:ScheduleOfBondPayableZeroOneThreeOneZeroOneSevenFourNineTwoTTZerohZKFGvMEight>

<kndi:ScheduleOfBondPayableZeroOneThreeOneZeroOneSevenFourNinelVpSevenDFKTworTwoDW contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 27 </kndi:ScheduleOfBondPayableZeroOneThreeOneZeroOneSevenFourNinelVpSevenDFKTworTwoDW>

<kndi:ScheduleOfBondPayableZeroOneThreeOneZeroOneSevenFourNineszrzvFyWcMTl contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 27 </kndi:ScheduleOfBondPayableZeroOneThreeOneZeroOneSevenFourNineszrzvFyWcMTl>

<kndi:ScheduleOfBondPayableZeroOneThreeOneZeroOneSevenFourNineFourSixNinekThreePVSixZtLSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 12666044 </kndi:ScheduleOfBondPayableZeroOneThreeOneZeroOneSevenFourNineFourSixNinekThreePVSixZtLSix>

<kndi:BondPayableZeroOneThreeOneZeroOneSevenFourNineTWzQVPntNineQqk contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="cny" decimals="0"> 80000000 </kndi:BondPayableZeroOneThreeOneZeroOneSevenFourNineTWzQVPntNineQqk>

<kndi:BondPayableZeroOneThreeOneZeroOneSevenFourNineKSTfpZMRxSSJ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 12666044 </kndi:BondPayableZeroOneThreeOneZeroOneSevenFourNineKSTfpZMRxSSJ>

<kndi:BondPayableZeroOneThreeOneZeroOneSevenFourNineXZWLFZerohSixSixlNinek contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.12 </kndi:BondPayableZeroOneThreeOneZeroOneSevenFourNineXZWLFZerohSixSixlNinek>

<us-gaap:IncomeTaxDisclosureTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 18 – TAXES (a) Corporation Income Tax On March 16, 2007, the National People’s Congress of the PRC adopted a new corporate income tax law (the “new CIT law”) in its fifth plenary session. The new corporate income tax law unifies the application scope, tax rate, tax deduction and preferential policy for both domestic and foreign-invested enterprises. The new corporate income tax law took effect on January 1, 2008. In accordance with the relevant tax laws and regulations of the PRC, the applicable corporate income tax (“CIT”) rate of Kandi is 25%. However, a foreign-invested company which registered with the PRC government before March 16, 2007 is still permitted to apply the former corporate income tax rules. Thus, our company was exempt from corporate income tax for 2007 and 2008 and is also entitled to a 50% tax reduction for 2009, 2010 and 2011, for which the tax rate is 12.5% . In 2012, this foreign-invested company tax benefit ended. However, the Company, qualified as a high technology company in China, was entitled to pay a reduced income tax rate of 15% and a research and development tax credit of 36.5%, the total tax benefit was 51.5% . Kandi New Energy is a subsidiary of the Company and its applicable corporate income tax rate is 25%. However, because Kandi New Energy’s profit was below a special standard amount in 2010, which rendered it to enjoy an initial tax benefit of 50% reduction in taxable income and tax at 20% reduced rate in 2011, with effective tax rate at 10%. The special reduced CIT tax rate benefit only lasts for one year. In 2012, the tax rate will go back to normal at 25%. Yongkang Scrou Electric. Co., Ltd is a subsidiary of the Company and its applicable corporate income tax rate was 25% in 2012. According to the PRC CIT reporting system, the CIT sales cut-off base is concurrent with the value added tax (“VAT”) which will be reported to the State Administration of Taxation (“SAT”) on a quarterly basis. Since the VAT and CIT are accounted for on a VAT tax basis that recorded all sales on a “State provided official invoices” reporting system, the Company is reporting the CIT according to the SAT prescribed tax reporting rules. Under the VAT tax reporting system, sales cut-off did not take the accrual basis but rather on a VAT taxable reporting basis. Therefore, when the company adopted US GAAP on accrual basis, the sales cut-off CIT timing difference which is derived from the VAT reporting system and will create a temporary sales cut-off timing difference; this difference is reflected in the deferred tax assets or liabilities calculations on the income tax estimate reported in the Form 10-K. Effective January 1, 2007, the Company adopted ASC 740, Income Taxes. The interpretation addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of December 31, 2012, the Company does not have a liability for unrecognized tax benefits. The Company files income tax returns to the U.S. Internal Revenue Services (“IRS”) and states where the Company has operation. The Company is subject to U.S. federal or state income tax examinations by IRS and relevant state tax authorities for years after 2006. During the periods open to examination, the Company has net operating loss carry forwards (“NOLs”) for U.S. federal and state tax purposes that have attributes from closed periods. Since these NOLs may be utilized in future periods, they remain subject to examination. The Company also files certain tax returns in China. As of December 31, 2012 the Company was not aware of any pending income tax examinations by U.S. and China tax authorities. The Company’s policy is to record interest and penalties on uncertain tax provisions as income tax expense. As of December 31, 2012, the Company has no accrued interest or penalties related to uncertain tax positions. The Company has not recorded a provision for U.S federal income tax for the year ended December 31, 2012 due to the net operating loss carry forward in the United States. Income tax expense for the years ended December 31, 2012 and 2011 is summarized as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="27%"> For the Year Ended </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="27%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Current:</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Provision for CIT</td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 1,523,735 </td> <td align="left" width="2%"> </td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 551,060 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Provision for Federal Income Tax</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Deferred:</td> <td align="left" width="1%"> </td> <td align="left" width="12%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="12%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Provision for CIT</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Income tax expense</td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 1,523,735 </td> <td align="left" width="2%"> </td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 551,060 </td> <td align="left" width="2%"> </td> </tr> </table> The Company’s income tax expense differs from the “expected” tax expense for the year ended December 31, 2012 and 2011 (computed by applying the U.S. Federal Income Tax rate of 34% and PRC Corporation Inocme Tax rate of 25%, respectively to income before income taxes) as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="27%"> For the Year Ended </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="27%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Computed “expected” income (expense)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 651,245 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (338,369 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left">Favorable tax rate</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (1,232,306 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (659,905 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Permanent differences</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 932,699 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 197,821 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Valuation Allowance</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,172,097 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,351,513 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#E6EFFF">Income tax expense</td> <td align="left" bgcolor="#E6EFFF" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#E6EFFF" valign="bottom" width="12%"> 1,523,735 </td> <td align="left" bgcolor="#E6EFFF" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#E6EFFF" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#E6EFFF" valign="bottom" width="12%"> 551,060 </td> <td align="left" bgcolor="#E6EFFF" valign="bottom" width="2%"> </td> </tr> </table> The tax effects of temporary differences that give rise to the Company’s net deferred tax assets and liabilities as of December 31, 2012 and 2011 are summarized as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Current portion: </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Deferred tax assets (liabilities): </td> <td align="left" width="1%"> </td> <td align="left" width="12%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="12%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Expense </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (193,777 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (11,741 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left"> Subtotal </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (193,777 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (11,741 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr> <td align="left" bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Deferred tax assets (liabilities): </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Sales cut-off difference derived from Value Added Tax reporting system to calculate PRC Corporation Income Tax in accordance with the PRC State Administration of Taxation </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 138,661 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (44,621 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left"> Other </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Subtotal </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 138,661 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (44,621 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr> <td align="left"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Total deferred tax liabilities – current portion </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (55,166 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (56,362 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr> <td align="left"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="12%"> </td> <td valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Non-current portion: </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Deferred tax assets: </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Depreciation </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 223,409 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 226,622 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Loss carried forward </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,172,097 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,351,513 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Valuation allowance </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (1,172,097 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (1,351,513 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left"> Subtotal </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 223,409 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 226,622 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Deferred tax liabilities: </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Accumulated other comprehensive gain </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (222,714 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (136,624 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left"> Subtotal </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (222,714 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (136,624 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr> <td align="left" bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Total deferred tax assets – non-current portion </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 695 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 89,998 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr> <td align="left" bgcolor="#e6efff"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Net deferred tax (liabilities) assets </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> (54,471 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 33,636 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> </table> (b) Tax Holiday Effect For the years ended December 31, 2012 and 2011 the PRC corporate income tax rate was 25%. Certain subsidiaries of the Company are entitled to tax exemptions (tax holidays) for the years ended December 31, 2012 and 2011. The combined effects of the income tax expense exemptions and reductions available to the Company for the years ended December 31, 2012 and 2011 are as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="27%"> For the Year Ended </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="27%"> December 31 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Tax holiday effect</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 1,232,306 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 659,905 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Basic net income per share effect</td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 0.04 </td> <td align="left" width="2%"> </td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 0.02 </td> <td align="left" width="2%"> </td> </tr> </table>

</us-gaap:IncomeTaxDisclosureTextBlock>

<us-gaap:ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="27%"> For the Year Ended </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="27%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Current:</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Provision for CIT</td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 1,523,735 </td> <td align="left" width="2%"> </td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 551,060 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Provision for Federal Income Tax</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Deferred:</td> <td align="left" width="1%"> </td> <td align="left" width="12%"> </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="12%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Provision for CIT</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Income tax expense</td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 1,523,735 </td> <td align="left" width="2%"> </td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 551,060 </td> <td align="left" width="2%"> </td> </tr> </table>

</us-gaap:ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock>

<kndi:ScheduleOfComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNinesMvnFJyNNzfS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1523735 </kndi:ScheduleOfComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNinesMvnFJyNNzfS>

<kndi:ScheduleOfComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineFourGbdTwokqcPVpf contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 551060 </kndi:ScheduleOfComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineFourGbdTwokqcPVpf>

<kndi:ScheduleOfComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNinegGJJMdSdlrDx contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNinegGJJMdSdlrDx>

<kndi:ScheduleOfComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineMbFourTkKQNFiveBwTwo contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineMbFourTkKQNFiveBwTwo>

<kndi:ScheduleOfComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineVzMSQfHhFiveNSevenx contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1523735 </kndi:ScheduleOfComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineVzMSQfHhFiveNSevenx>

<kndi:ScheduleOfComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineTyyrBpNinemvOneSevenZ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 551060 </kndi:ScheduleOfComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineTyyrBpNinemvOneSevenZ>

<kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpenseBenefitTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="27%"> For the Year Ended </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="27%"> December 31, </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Computed “expected” income (expense)</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 651,245 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (338,369 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left">Favorable tax rate</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (1,232,306 </td> <td align="left" valign="bottom" width="2%">)</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> (659,905 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Permanent differences</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 932,699 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 197,821 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Valuation Allowance</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,172,097 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 1,351,513 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#E6EFFF">Income tax expense</td> <td align="left" bgcolor="#E6EFFF" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#E6EFFF" valign="bottom" width="12%"> 1,523,735 </td> <td align="left" bgcolor="#E6EFFF" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#E6EFFF" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#E6EFFF" valign="bottom" width="12%"> 551,060 </td> <td align="left" bgcolor="#E6EFFF" valign="bottom" width="2%"> </td> </tr> </table>

</kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpenseBenefitTableTextBlock>

<kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNinekwTwocDLPQPVWT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 651245 </kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNinekwTwocDLPQPVWT>

<kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineTCNBKfMDFourNineQk contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -338369 </kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineTCNBKfMDFourNineQk>

<kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineCnRFourmdZeroEightTNPJ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -1232306 </kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineCnRFourmdZeroEightTNPJ>

<kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineZFrzSNineOneCBzwz contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -659905 </kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineZFrzSNineOneCBzwz>

<kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineFiveKTwobcRscSixsWh contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 932699 </kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineFiveKTwobcRscSixsWh>

<kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineTsThreeNineczFSSixNineJS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 197821 </kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineTsThreeNineczFSSixNineJS>

<kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineEightNvcVlgNhPJb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1172097 </kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineEightNvcVlgNhPJb>

<kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineKTTwoQKShhFiveSKl contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1351513 </kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineKTTwoQKShhFiveSKl>

<kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineJbrNineJVWpzmRM contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1523735 </kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineJbrNineJVWpzmRM>

<kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineDrSixBOneSixRnhNineThreed contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 551060 </kndi:ScheduleOfExpectedComponentsOfIncomeTaxExpensebenefitZeroOneThreeOneZeroOneSevenFourNineDrSixBOneSixRnhNineThreed>

<us-gaap:ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

</us-gaap:ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineqZyTNineThreeBSixThreeQSixv contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -193777 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineqZyTNineThreeBSixThreeQSixv>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNinetzMDBTggLwEightg contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -11741 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNinetzMDBTggLwEightg>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineBTcFourKZGSSevenhqz contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -193777 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineBTcFourKZGSSevenhqz>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineJGQNDzCEightrcCv contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -11741 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineJGQNDzCEightrcCv>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineOnelmrMgZSevenqOnesFive contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 138661 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineOnelmrMgZSevenqOnesFive>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineFivevSXTThreeZOneQEightGP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -44621 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineFivevSXTThreeZOneQEightGP>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNinerzOneTHlTFiveHWVd contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNinerzOneTHlTFiveHWVd>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineSevenfFphfVfQEightFourF contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 138661 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineSevenfFphfVfQEightFourF>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineBKSqDslNwxtT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -44621 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineBKSqDslNwxtT>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineqDThreeNinePHNGbGSSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -55166 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineqDThreeNinePHNGbGSSix>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineXwdSevennLwZeroFiveNineQM contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -56362 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineXwdSevennLwZeroFiveNineQM>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineTpFivewZeroTrhfrsc contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 223409 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineTpFivewZeroTrhfrsc>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineWWThreeRmXNinezVRZr contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 226622 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineWWThreeRmXNinezVRZr>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNinelLFourcDFSevenNGyZc contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1172097 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNinelLFourcDFSevenNGyZc>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineThreexqFivegmMGbZerodQ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1351513 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineThreexqFivegmMGbZerodQ>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineTQdTTwoZNinerwkmp contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -1172097 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineTQdTTwoZNinerwkmp>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNinesDWRFiveSixKNineLvzSeven contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -1351513 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNinesDWRFiveSixKNineLvzSeven>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineKhlmJyBGnHTNine contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 223409 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineKhlmJyBGnHTNine>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineFiveFLdSevensLclHCS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 226622 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineFiveFLdSevensLclHCS>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineThreelQPrHVTySevenxM contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -222714 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineThreelQPrHVTySevenxM>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineVcQMzrKFourWvOneK contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -136624 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineVcQMzrKFourWvOneK>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineyLmTVgVJpkMr contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -222714 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineyLmTVgVJpkMr>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNinekWSFSdDwqTwonG contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -136624 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNinekWSFSdDwqTwonG>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineXZeroSWlOneywLZOneH contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 695 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineXZeroSWlOneywLZOneH>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineRhVkXfhGSixzOneV contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 89998 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineRhVkXfhGSixzOneV>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineFoursrEightSOneTgvNTr contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -54471 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNineFoursrEightSOneTgvNTr>

<kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNinegXHzXbFourfSlNP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 33636 </kndi:ScheduleOfDeferredTaxAssetsAndLiabilitiesZeroOneThreeOneZeroOneSevenFourNinegXHzXbFourfSlNP>

<us-gaap:SummaryOfIncomeTaxHolidayTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="27%"> For the Year Ended </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" width="27%"> December 31 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2012 </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> 2011 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Tax holiday effect</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 1,232,306 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 659,905 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Basic net income per share effect</td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 0.04 </td> <td align="left" width="2%"> </td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 0.02 </td> <td align="left" width="2%"> </td> </tr> </table>

</us-gaap:SummaryOfIncomeTaxHolidayTextBlock>

<kndi:SummaryOfIncomeTaxHolidayZeroOneThreeOneZeroOneSevenFourNineLPVmVkwNtnxM contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1232306 </kndi:SummaryOfIncomeTaxHolidayZeroOneThreeOneZeroOneSevenFourNineLPVmVkwNtnxM>

<kndi:SummaryOfIncomeTaxHolidayZeroOneThreeOneZeroOneSevenFourNineNBxmLmSevenTMzbr contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 659905 </kndi:SummaryOfIncomeTaxHolidayZeroOneThreeOneZeroOneSevenFourNineNBxmLmSevenTMzbr>

<kndi:SummaryOfIncomeTaxHolidayZeroOneThreeOneZeroOneSevenFourNinecEightmThreesZFourvTdWb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.04 </kndi:SummaryOfIncomeTaxHolidayZeroOneThreeOneZeroOneSevenFourNinecEightmThreesZFourvTdWb>

<kndi:SummaryOfIncomeTaxHolidayZeroOneThreeOneZeroOneSevenFourNineJgVyySQVdJOnez contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.02 </kndi:SummaryOfIncomeTaxHolidayZeroOneThreeOneZeroOneSevenFourNineJgVyySQVdJOnez>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineFTwGCxNineNcwOneb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.25 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineFTwGCxNineNcwOneb>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNinePOneSevencTwoBnpTwoFourEightd contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.50 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNinePOneSevencTwoBnpTwoFourEightd>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineDnWRZerocfXTlHN contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="3"> 0.125 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineDnWRZerocfXTlHN>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineHZkFourGpWZOneNSixy contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.15 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineHZkFourGpWZOneNSixy>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNinexVyZerodFdSevenSKTd contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="3"> 0.365 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNinexVyZerodFdSevenSKTd>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineZQScRMTSevenlHGOne contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="3"> 0.515 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineZQScRMTSevenlHGOne>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNinewdFournFourmTzdyxb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.25 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNinewdFournFourmTzdyxb>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNinehPwDqNineFiveSixztTThree contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.50 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNinehPwDqNineFiveSixztTThree>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineTLVdRxThreeThreeNinekMV contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.20 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineTLVdRxThreeThreeNinekMV>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineqEightBsEightmdVFqwOne contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.10 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineqEightBsEightmdVFqwOne>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNinezFiveSixBbrBZeroZSixwJ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.25 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNinezFiveSixBbrBZeroZSixwJ>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineKbTwobMQRxQThreeXb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.25 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineKbTwobMQRxQThreeXb>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNinevgJFivecxgxTwoCXP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.34 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNinevgJFivecxgxTwoCXP>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineNSevenvQmEightBLqJFiveL contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.25 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNineNSevenvQmEightBLqJFiveL>

<kndi:TaxesZeroOneThreeOneZeroOneSevenFourNinewZSevenBMtOneBFourdlFive contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.25 </kndi:TaxesZeroOneThreeOneZeroOneSevenFourNinewZSevenBMtOneBFourdlFive>

<kndi:StockOptionsWarrantsAndConvertibleNotesDisclosureTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 19 - STOCK OPTIONS, WARRANTS AND CONVERTIBLE NOTES (a) Stock Options On February 11, 2009, the Compensation Committee of the Board of Directors of the Company approved the grant of stock options for 2,600,000 shares of common stock to ten of the Company’s employees and directors. The stock options vest ratably over three years and expire in ten years from the grant date. The Company valued the stock options at $2,062,964 and amortizes the stock compensation expense using the straight-line method over the service period from February 11, 2009 through February 11, 2012. The value of the options was estimated using the Black Scholes Model with an expected volatility of 164%, expected life of 10 years, risk-free interest rate of 2.76% and expected dividend yield of 0.00% . On June 30, 2011, one of the Company’s directors resigned, and his 6,668 unexercised options were forfeited. As of December 31, 2012, options for 2,366,672 shares have been exercised. On October 6, 2009, the Company executed an agreement (“Cooperation Agreement”) with Wang Rui and Li Qiwen, third-party consultants, whereby Mr. Wang and Mr. Li are to provide business development services in China to the Company in exchange for options to purchase 350,000 shares of the Company’s common stock at an exercise price of $1.50 per share. Per the agreement, 250,000 of these options will vest and become exercisable on March 6, 2010, and 100,000 will vest and become exercisable on June 6, 2010. The options will expire after ten years. The following is a summary of the stock option activities of the Company: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Weighted Average </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Activity </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Exercise Price </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Outstanding as of January 1, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,786,637 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 0.84 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Granted</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Exercised</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,459,977 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 0.80 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Cancelled</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Outstanding as of December 31, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 326,660 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1.01 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table> The following table summarizes information about stock options outstanding as of December 31, 2012: <div> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="center" colspan="3"> Options Outstanding </td> <td align="center" colspan="2" width="40%"> Options Exercisable </td> </tr> <tr valign="top"> <td align="center"> </td> <td align="center" width="20%"> </td> <td align="center" width="20%"> Remaining </td> <td align="center" width="20%"> </td> <td align="center" width="20%"> </td> </tr> <tr valign="top"> <td align="center"> Number of </td> <td align="center" width="20%"> Exercise </td> <td align="center" width="20%"> Contractual life </td> <td align="center" width="20%"> Number of </td> <td align="center" width="20%"> Exercise </td> </tr> <tr valign="top"> <td align="center"> shares </td> <td align="center" width="20%"> Price </td> <td align="center" width="20%"> (in years) </td> <td align="center" width="20%"> shares </td> <td align="center" width="20%"> Price </td> </tr> <tr valign="top"> <td align="center" bgcolor="#e6efff"> 226,660 </td> <td align="center" bgcolor="#e6efff" width="20%"> $0.80 </td> <td align="center" bgcolor="#e6efff" width="20%"> 6.25 </td> <td align="center" bgcolor="#e6efff" width="20%"> 226,660 </td> <td align="center" bgcolor="#e6efff" width="20%"> $0.80 </td> </tr> <tr valign="top"> <td align="center"> 100,000 </td> <td align="center" width="20%"> 1.50 </td> <td align="center" width="20%"> 6.75 </td> <td align="center" width="20%"> 100,000 </td> <td align="center" width="20%"> 1.50 </td> </tr> </table> </div> The fair value per share of the 2,600,000 options issued to the employees and directors, of which the 2,600,000 options identified abover are a part of, is $0.7934 per share. The fair value per share of the unexercised 100,000 options issued to Wang Rui and Li Qiwen, which became exercisable on June 6, 2010, is $3.44. (b) Warrants and Convertible Notes On September 21, 2009, the Company executed an agreement (“Consulting Agreement”) with a third-party consultant, whereby the consultant is to provide management consulting and advisory services for a period of 12 months, beginning on September 22, 2009, and ending on September 22, 2010. As compensation for the services provided, the Company agreed to issue 200,000 warrants to purchase the Company’s common stock, with 100,000 of these warrants issued at an exercise price of $2.00 per share and 100,000 of these warrants issued at an exercise price of $2.50 per share. All of the warrants have a five year contractual term and were granted on October 22, 2009. The warrants vested in full and became exercisable on January 21, 2010, upon the closing of an initial round of financing. The fair value per share of the 100,000 warrants issued under the Consulting Agreement with an exercise price of $2.00 is $4.56, and the fair value per share of the 100,000 warrants issued under the Consulting Agreement with an exercise price of $2.50 is $4.48. As of December 31, 2012, the consultant had cashless exercised all the 200,000 warrants. Under a Securities Purchase Agreement, dated as of January 21, 2010, by and among the Company and certain investors thereto, the Company issued a total of $10 million of senior secured convertible notes (the “Convertible Notes”) and warrants exercisable for an aggregate of 800,000 shares of the Company’s Common Stock (the “Investor Warrants”), for gross proceeds of $10 million. The Convertible Notes, which accrue interest at a rate of 6% per annum, will mature in two years following the closing date of the offering and are initially convertible, at the option of the holders, into shares of Common Stock at $6.25 per share. As of closing date, January 21, 2010, the Convertible Notes were convertible into 1,600,000 shares of Common Stock at the price of $6.25 per share. The Investor Warrants, which are exercisable for a period of three years following the closing date, were initially exercisable upon entering into the Securities Purchase Agreement (dated January 21, 2010) at an exercise price of $6.5625 per share. Included in the associated issuance costs is the fair value of 80,000 warrants issued to a placement agent. These warrants have the same terms and conditions as the Investor Warrants issued to the investors. Pursuant to the terms of the Convertible Notes and the Investor Warrants, on May 18, 2010, the conversion price of the Convertible Notes was adjusted to $3.5924 per share and the exercise price of the Investor Warrants and warrants issued to the placement agent was adjusted to $4.3907 per share. On August 19, 2010, the conversion price of the Convertible Notes was adjusted to $3.1146 per share and the exercise price of the Investor Warrants and warrants issued to the placement agent was adjusted to $3.8067 per share. As a result, the number of Investor Warrants and warrants issued to the placement agent was adjusted to 1,379,148 and 137,915 respectively. As of December 31, 2012, the investors had converted all $10 million principal amount and $159,522 accrued interest of the Convertible Notes into an aggregate of 3,121,121 shares of Common Stock. As of December 31, 2012, 329,000 Investor Warrants and 124,123 warrants issued to the placement agent have been exercised. As of December 31, 2012, the fair value of the Investor Warrants and the warrants issued to the placement agent is $0.44 per share. As referenced in the Subsequent Events paragraph, as of the filing date of this Form 10-K, the number of outstanding warrants have been reduced by exercise and expiration to, in the aggregate, 1,210,912. On December 21, 2010, the Company agreed to sell to certain institutional investors up to 3,027,272 shares of the Company’s common stock and warrants to purchase up to 1,210,912 shares of the Company’s common stock in fixed combination, with each combination consisting of one share of common stock and a warrant to purchase 0.40 shares of common stock in a registered direct public offering (“Second round warrants”). The warrants became exercisable immediately following the closing date of the offering and remain exercisable for three years thereafter at an exercise price of $6.30 per share. As of December 31, 2012, the fair value of Second round warrants is $0.86 per share.

</kndi:StockOptionsWarrantsAndConvertibleNotesDisclosureTextBlock>

<us-gaap:ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Weighted Average </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Activity </td> <td align="center" nowrap="nowrap" width="2%"> </td> <td align="center" nowrap="nowrap" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%"> Exercise Price </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Outstanding as of January 1, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,786,637 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 0.84 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Granted</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Exercised</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1,459,977 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 0.80 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Cancelled</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Outstanding as of December 31, 2012</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 326,660 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 1.01 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table>

</us-gaap:ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock>

<kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNineJWflyxSevenKbTfFour contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1786637 </kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNineJWflyxSevenKbTfFour>

<kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNineRQBNkrXTcOnevT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.84 </kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNineRQBNkrXTcOnevT>

<kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNinenGgQEightdcdlTwoMS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNinenGgQEightdcdlTwoMS>

<kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNineGbfrbNnZerokpBN contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNineGbfrbNnZerokpBN>

<kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNineMOneknfFPGqZerohl contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 1459977 </kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNineMOneknfFPGqZerohl>

<kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNineSWnmqSevenFvSixqMZ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.80 </kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNineSWnmqSevenFvSixqMZ>

<kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNinezPsRcOneNQFTwoKP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNinezPsRcOneNQFTwoKP>

<kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNinelgfRTwoKwxkFivebP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNinelgfRTwoKwxkFivebP>

<kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNineJKQnTwogfNineFZeroZeroB contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 326660 </kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNineJKQnTwogfNineFZeroZeroB>

<kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNineMHsZeroMMTBThreeSMr contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 1.01 </kndi:ScheduleOfSharebasedCompensationStockOptionsActivityZeroOneThreeOneZeroOneSevenFourNineMHsZeroMMTBThreeSMr>

<us-gaap:DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="center" colspan="3"> Options Outstanding </td> <td align="center" colspan="2" width="40%"> Options Exercisable </td> </tr> <tr valign="top"> <td align="center"> </td> <td align="center" width="20%"> </td> <td align="center" width="20%"> Remaining </td> <td align="center" width="20%"> </td> <td align="center" width="20%"> </td> </tr> <tr valign="top"> <td align="center"> Number of </td> <td align="center" width="20%"> Exercise </td> <td align="center" width="20%"> Contractual life </td> <td align="center" width="20%"> Number of </td> <td align="center" width="20%"> Exercise </td> </tr> <tr valign="top"> <td align="center"> shares </td> <td align="center" width="20%"> Price </td> <td align="center" width="20%"> (in years) </td> <td align="center" width="20%"> shares </td> <td align="center" width="20%"> Price </td> </tr> <tr valign="top"> <td align="center" bgcolor="#e6efff"> 226,660 </td> <td align="center" bgcolor="#e6efff" width="20%"> $0.80 </td> <td align="center" bgcolor="#e6efff" width="20%"> 6.25 </td> <td align="center" bgcolor="#e6efff" width="20%"> 226,660 </td> <td align="center" bgcolor="#e6efff" width="20%"> $0.80 </td> </tr> <tr valign="top"> <td align="center"> 100,000 </td> <td align="center" width="20%"> 1.50 </td> <td align="center" width="20%"> 6.75 </td> <td align="center" width="20%"> 100,000 </td> <td align="center" width="20%"> 1.50 </td> </tr> </table>

</us-gaap:DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock>

<kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNineqrPByRLJpmThreeD contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 226660 </kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNineqrPByRLJpmThreeD>

<kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNinecbpQrsEightTkVnx contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="2"> 0.80 </kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNinecbpQrsEightTkVnx>

<kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNinegTwoGhTzRSevenznkT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 6.25 </kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNinegTwoGhTzRSevenznkT>

<kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNinehhhCkSixgRGEightRl contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 226660 </kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNinehhhCkSixgRGEightRl>

<kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNineZsvyGFourfkQhThreeFive contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="2"> 0.80 </kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNineZsvyGFourfkQhThreeFive>

<kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNineSqyJNDmTwoLBTwoG contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 100000 </kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNineSqyJNDmTwoLBTwoG>

<kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNinefnmrFJRdgFbg contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 1.50 </kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNinefnmrFJRdgFbg>

<kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNineBGdSevenQrHHCBvK contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 6.75 </kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNineBGdSevenQrHHCBvK>

<kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNineTwoDNinebzlwqsBPB contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 100000 </kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNineTwoDNinebzlwqsBPB>

<kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNineFoursZeroWgSixnWxkSevenFive contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 1.50 </kndi:ScheduleOfDisclosureOfSharebasedCompensationStockOptionOutstandingSummaryZeroOneThreeOneZeroOneSevenFourNineFoursZeroWgSixnWxkSevenFive>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineKgFiveDwZcvVSSH contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 2600000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineKgFiveDwZcvVSSH>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineSixFnLSdgzypTS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2062964 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineSixFnLSdgzypTS>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinenDnFmySixPGkXNine contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 1.64 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinenDnFmySixPGkXNine>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineOnecRBFzSixgTwoFFourv contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="y" decimals="0"> 10 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineOnecRBFzSixgTwoFFourv>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinemCThreeNrQSfThreebTJ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0276 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinemCThreeNrQSfThreebTJ>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineqyVGbFourQvGXXH contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="4"> 0.0000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineqyVGbFourQvGXXH>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineCGNZfpNinekwNineXJ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 6668 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineCGNZfpNinekwNineXJ>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinegZGrSixSJBvKzV contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 2366672 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinegZGrSixSJBvKzV>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinebhsPOneBkJvsNineK contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 350000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinebhsPOneBkJvsNineK>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinepLTSmBOneqFourLsf contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="2"> 1.50 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinepLTSmBOneqFourLsf>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinezpXsyZWFiveZsRl contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="0"> 250000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinezpXsyZWFiveZsRl>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineKGMyPMTTworfGz contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="0"> 100000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineKGMyPMTTworfGz>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinemFLLEightKRSixBTlt contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 2600000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinemFLLEightKRSixBTlt>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineHLtPTwoVZGZerozxp contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 2600000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineHLtPTwoVZGZerozxp>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinevFourfhZZeronpmslEight contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="4"> 0.7934 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinevFourfhZZeronpmslEight>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinebNRZsPFivegZeroOneRZero contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 100000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinebNRZsPFivegZeroOneRZero>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineLRBXsFGFiveTwoNineFourd contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="2"> 3.44 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineLRBXsFGFiveTwoNineFourd>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineOnekZFiveThreemWHgPFiveG contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="m" decimals="0"> 12 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineOnekZFiveThreemWHgPFiveG>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineXWqFiveSevenpPSmRqF contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 200000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineXWqFiveSevenpPSmRqF>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineNinepFourywEightTFivegnCFive contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="0"> 100000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineNinepFourywEightTFivegnCFive>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineTwoKxCTgttDSXT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="2"> 2.00 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineTwoKxCTgttDSXT>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinexCGLTThreeNdLhTV contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="0"> 100000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinexCGLTThreeNdLhTV>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinefspQMllOneSxNc contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="2"> 2.50 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinefspQMllOneSxNc>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinevCnDTHWVsrSixs contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 100000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinevCnDTHWVsrSixs>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinesXKWNZPTTwoxThreeC contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="2"> 2.00 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinesXKWNZPTTwoxThreeC>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineQcWLSVZFourPXmT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="2"> 4.56 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineQcWLSVZFourPXmT>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineHFLtkEightbFiveKqlOne contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 100000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineHFLtkEightbFiveKqlOne>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineZfGyTwoqBFourThreesHB contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="2"> 2.50 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineZfGyTwoqBFourThreesHB>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinecfZeroTwoZerorSXThreexwG contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="2"> 4.48 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinecfZeroTwoZerorSXThreexwG>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineGZSevenWhXFiveZfrhFour contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 200000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineGZSevenWhXFiveZfrhFour>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinegrknOneXTtNxSp contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="-6"> 10000000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinegrknOneXTtNxSp>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinenFourSixhLZfZeroyZeroWq contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 800000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinenFourSixhLZfZeroyZeroWq>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinekStJTwoSixCgClNinec contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="-6"> 10000000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinekStJTwoSixCgClNinec>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinePvJqmGCSixbfng contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.06 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinePvJqmGCSixbfng>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinegdSixctEightdksEightmR contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="2"> 6.25 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinegdSixctEightdksEightmR>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineNFWwHPgwwzrf contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 1600000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineNFWwHPgwwzrf>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineEightptgkDqgSixZWh contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="2"> 6.25 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineEightptgkDqgSixZWh>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineFourfSLJqrEightVhGg contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="4"> 6.5625 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineFourfSLJqrEightVhGg>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinelfssThreegvfcsSixSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 80000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinelfssThreegvfcsSixSix>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinekcWtvZerovfZeroTwoPk contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="4"> 3.5924 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinekcWtvZerovfZeroTwoPk>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineJSEightWLpkSevenKgzh contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="4"> 4.3907 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineJSEightWLpkSevenKgzh>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinewySevenDCNineEightThreelBBSeven contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="4"> 3.1146 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinewySevenDCNineEightThreelBBSeven>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineTvGFiveHTwokPbDTt contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="4"> 3.8067 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineTvGFiveHTwokPbDTt>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineJFivewTsCBxxKfw contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="0"> 1379148 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineJFivewTsCBxxKfw>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinebVhdrQCsOneGEightSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="0"> 137915 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinebVhdrQCsOneGEightSix>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinenHMcLSevennHrSixZeroNine contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="-6"> 10000000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinenHMcLSevennHrSixZeroNine>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineSSGFourSixVOnePFourHDThree contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 159522 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineSSGFourSixVOnePFourHDThree>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinembXCFivezFDhNinezR contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 3121121 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinembXCFivezFDhNinezR>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineznTKCDkZeroLwLH contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="0"> 329000 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineznTKCDkZeroLwLH>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineKWDyffGXsyXZ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 124123 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineKWDyffGXsyXZ>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineDkSSevenDtEightFfgPSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="2"> 0.44 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineDkSSevenDtEightFfgPSix>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinebqPnRbBcZeroqKTwo contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="0"> 1210912 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinebqPnRbBcZeroqKTwo>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineTpNineQDrhCSPNineOne contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 3027272 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineTpNineQDrhCSPNineOne>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineDmxThVFbQfvB contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 1210912 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineDmxThVFbQfvB>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinehTMJvpsSevenVJOnec contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="1"> 0.4 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNinehTMJvpsSevenVJOnec>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineFQThreeSixfpcTwoFybh contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="2"> 6.30 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineFQThreeSixfpcTwoFybh>

<kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineNpZFourvfxgDDTwoH contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="2"> 0.86 </kndi:StockOptionsWarrantsAndConvertibleNotesZeroOneThreeOneZeroOneSevenFourNineNpZFourvfxgDDTwoH>

<kndi:StockAwardDisclosureTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 20 – STOCK AWARD In connection with his appointment to the Board of Directors, and as compensation for serving, the Board of Directors has authorized the Company to provide Mr. Henry Yu with 5,000 shares of Company’s restricted common stock every six months, par value $0.001 from July 2011. As compensation for his services, the Board of Directors has authorized the Company to provide Mr. Jerry Lewin with 5,000 shares of Company’s restricted common stock every six months, par value $0.001 from August 2011. The fair value of awarded stock is determined by the closing price of our common stock on the date of stock award, or by estimating the closing price of our common stock on the reporting date if stock has not yet been awarded.

</kndi:StockAwardDisclosureTextBlock>

<kndi:StockAwardZeroOneThreeOneZeroOneSevenFourNineTXcglBbTyWZeroq contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 5000 </kndi:StockAwardZeroOneThreeOneZeroOneSevenFourNineTXcglBbTyWZeroq>

<kndi:StockAwardZeroOneThreeOneZeroOneSevenFourNineSixRKtNDCPgqZV contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="3"> 0.001 </kndi:StockAwardZeroOneThreeOneZeroOneSevenFourNineSixRKtNDCPgqZV>

<kndi:StockAwardZeroOneThreeOneZeroOneSevenFourNineFourFdhmsGCTWZg contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 5000 </kndi:StockAwardZeroOneThreeOneZeroOneSevenFourNineFourFdhmsGCTWZg>

<kndi:StockAwardZeroOneThreeOneZeroOneSevenFourNinehhRnGThreeyqcvSixg contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="3"> 0.001 </kndi:StockAwardZeroOneThreeOneZeroOneSevenFourNinehhRnGThreeyqcvSixg>

<us-gaap:IntangibleAssetsDisclosureTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 21 – INTANGIBLE ASSETS The following table provides the gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%">Remaining useful life</td> <td align="left" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> December 31, 2012 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Gross carrying amount:</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="center" bgcolor="#e6efff" nowrap="nowrap" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Tradename</td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%"> 9 years </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 492,235 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Customer relations</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="center" bgcolor="#e6efff" nowrap="nowrap" valign="bottom" width="12%"> 9 years </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 304,086 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 796,321 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Less : Accumulated amortization</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Tradename</td> <td align="left" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> (33,831 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Customer relations</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> (20,899 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> (54,730 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Intangible assets, net</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 741,591 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table> The aggregate amortization expense for those intangible assets that continue to be amortized is reflected in amortization of intangible assets in the Consolidated Statements of Income and comprehensive Income and was $54,730 and $0 for the years ended December 31, 2012 and 2011, respectively. Amortization expense for the next five years and thereafter is as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" bgcolor="#e6efff">2013</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 82,095 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">2014</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 82,095 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">2015</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 82,095 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">2016</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 82,095 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">2017</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 82,095 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Thereafter</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 331,116 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Total</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 741,591 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table>

</us-gaap:IntangibleAssetsDisclosureTextBlock>

<us-gaap:ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" width="12%">Remaining useful life</td> <td align="left" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> December 31, 2012 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Gross carrying amount:</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="center" bgcolor="#e6efff" nowrap="nowrap" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Tradename</td> <td align="left" width="1%"> </td> <td align="center" nowrap="nowrap" valign="bottom" width="12%"> 9 years </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> 492,235 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Customer relations</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="center" bgcolor="#e6efff" nowrap="nowrap" valign="bottom" width="12%"> 9 years </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 304,086 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 796,321 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Less : Accumulated amortization</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Tradename</td> <td align="left" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="12%"> (33,831 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Customer relations</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> (20,899 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left"> </td> <td align="left" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> (54,730 </td> <td align="left" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Intangible assets, net</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 741,591 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table>

</us-gaap:ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock>

<kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNineMtEightFivelbCNSpFiveS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="y" decimals="0"> 9 </kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNineMtEightFivelbCNSpFiveS>

<kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNineDnPbSixHvlvTlG contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 492235 </kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNineDnPbSixHvlvTlG>

<kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNineSevenKXDBGfZtFiveBThree contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="y" decimals="0"> 9 </kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNineSevenKXDBGfZtFiveBThree>

<kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNineZeroNineRWNDdVfyxm contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 304086 </kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNineZeroNineRWNDdVfyxm>

<kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNinerNineZMCXCPTRCZero contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 796321 </kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNinerNineZMCXCPTRCZero>

<kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNineJTwoTwoQEightpmqhpZd contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -33831 </kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNineJTwoTwoQEightpmqhpZd>

<kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNinetHJxLQLpHTyb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -20899 </kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNinetHJxLQLpHTyb>

<kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNinedVcDpvpTwoTwoRLh contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -54730 </kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNinedVcDpvpTwoTwoRLh>

<kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNinemxqmTZeroBFourFourOnePL contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 741591 </kndi:ScheduleOfIntangibleAssetsZeroOneThreeOneZeroOneSevenFourNinemxqmTZeroBFourFourOnePL>

<us-gaap:ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" bgcolor="#e6efff">2013</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 82,095 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">2014</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 82,095 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">2015</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 82,095 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">2016</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 82,095 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">2017</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 82,095 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Thereafter</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 331,116 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Total</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 741,591 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table>

</us-gaap:ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock>

<kndi:ScheduleOfFinitelivedIntangibleAssetsFutureAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNinepSvbzQSixZerolTwoWr contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 82095 </kndi:ScheduleOfFinitelivedIntangibleAssetsFutureAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNinepSvbzQSixZerolTwoWr>

<kndi:ScheduleOfFinitelivedIntangibleAssetsFutureAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineTZeroEightrmNinedJVgSixH contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 82095 </kndi:ScheduleOfFinitelivedIntangibleAssetsFutureAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineTZeroEightrmNinedJVgSixH>

<kndi:ScheduleOfFinitelivedIntangibleAssetsFutureAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNinebgBKcCTRPvBQ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 82095 </kndi:ScheduleOfFinitelivedIntangibleAssetsFutureAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNinebgBKcCTRPvBQ>

<kndi:ScheduleOfFinitelivedIntangibleAssetsFutureAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNinevGGytrSkFivepVR contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 82095 </kndi:ScheduleOfFinitelivedIntangibleAssetsFutureAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNinevGGytrSkFivepVR>

<kndi:ScheduleOfFinitelivedIntangibleAssetsFutureAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNinedPSxEightgHCqrWX contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 82095 </kndi:ScheduleOfFinitelivedIntangibleAssetsFutureAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNinedPSxEightgHCqrWX>

<kndi:ScheduleOfFinitelivedIntangibleAssetsFutureAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineswzmFMndGHzz contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 331116 </kndi:ScheduleOfFinitelivedIntangibleAssetsFutureAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineswzmFMndGHzz>

<kndi:ScheduleOfFinitelivedIntangibleAssetsFutureAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineFourKwGfFGDxlVFour contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 741591 </kndi:ScheduleOfFinitelivedIntangibleAssetsFutureAmortizationExpenseZeroOneThreeOneZeroOneSevenFourNineFourKwGfFGDxlVFour>

<kndi:IntangibleAssetsZeroOneThreeOneZeroOneSevenFourNineCzTwoCLFouryxBwNineR contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 54730 </kndi:IntangibleAssetsZeroOneThreeOneZeroOneSevenFourNineCzTwoCLFouryxBwNineR>

<kndi:IntangibleAssetsZeroOneThreeOneZeroOneSevenFourNineGTtlrrZTdlNl contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 0 </kndi:IntangibleAssetsZeroOneThreeOneZeroOneSevenFourNineGTtlrrZTdlNl>

<us-gaap:BusinessCombinationDisclosureTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 22 – BUSINESS COMBINATION The Company acquired Yongkang Scrou Electric Co on April 25, 2012. The Company issued 2,354,212 shares of its common stock, which was valued at $3.66 per share (market value on the date of acquisition). The total purchase price for the acquisition was approximately $8.6 million which was primarily allocated to working capital, tangible property and equipment, identifiable intangible assets and goodwill. The purchase price allocation based on a qualified independent valuation is as follows: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" bgcolor="#e6efff">Working Capital</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 3,308,631 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Tangible Property</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 880,942 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Identifiable Intangible Property</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">-Land use right</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 3,622,651 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">-Tradename</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 492,235 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">-Customer relations</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 304,086 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">-Goodwill</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 322,591 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Deferred tax liability created, net</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (314,720 </td> <td align="left" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Total Purchase Price </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 8,616,416 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table>

</us-gaap:BusinessCombinationDisclosureTextBlock>

<us-gaap:ScheduleOfPurchasePriceAllocationTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" bgcolor="#e6efff">Working Capital</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 3,308,631 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Tangible Property</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 880,942 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Identifiable Intangible Property</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="12%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">-Land use right</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 3,622,651 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">-Tradename</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 492,235 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">-Customer relations</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 304,086 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">-Goodwill</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 322,591 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Deferred tax liability created, net</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (314,720 </td> <td align="left" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Total Purchase Price </td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 8,616,416 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> </table>

</us-gaap:ScheduleOfPurchasePriceAllocationTableTextBlock>

<kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNineWKyDTkDZwHFourz contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3308631 </kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNineWKyDTkDZwHFourz>

<kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNinelTwoPrSixpsOneFtNinet contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 880942 </kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNinelTwoPrSixpsOneFtNinet>

<kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNinenBxZeroCmTwoOnemFiveTB contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3622651 </kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNinenBxZeroCmTwoOnemFiveTB>

<kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNineQZeronSGJXzFiveCqZero contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 492235 </kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNineQZeronSGJXzFiveCqZero>

<kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNinehDbSevenqySixWKvZQ contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 304086 </kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNinehDbSevenqySixWKvZQ>

<kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNineDTwohpPPNineCfTFiveT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 322591 </kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNineDTwohpPPNineCfTFiveT>

<kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNinePXhrSixxhmBkDL contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> -314720 </kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNinePXhrSixxhmBkDL>

<kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNineSevenkJLkmGVSQFourSeven contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 8616416 </kndi:ScheduleOfPurchasePriceAllocationZeroOneThreeOneZeroOneSevenFourNineSevenkJLkmGVSQFourSeven>

<kndi:BusinessCombinationZeroOneThreeOneZeroOneSevenFourNineJygpvlqEightHpdG contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="shares" decimals="0"> 2354212 </kndi:BusinessCombinationZeroOneThreeOneZeroOneSevenFourNineJygpvlqEightHpdG>

<kndi:BusinessCombinationZeroOneThreeOneZeroOneSevenFourNineFiveflmBMBRSixTNinef contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd_shares" decimals="2"> 3.66 </kndi:BusinessCombinationZeroOneThreeOneZeroOneSevenFourNineFiveflmBMBRSixTNinef>

<kndi:BusinessCombinationZeroOneThreeOneZeroOneSevenFourNinepbsSevenMbPtxdnN contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="-6"> 8600000 </kndi:BusinessCombinationZeroOneThreeOneZeroOneSevenFourNinepbsSevenMbPtxdnN>

<us-gaap:CommitmentsAndContingenciesDisclosureTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 23 - COMMITMENTS AND CONTINGENCIES (a) Guarantees and Pledged collateral for third party bank loans As of December 31, 2012, the Company provided guarantees for the following third parties: (1) Guarantees for bank loans <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left">Guarantee provided to</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" style="BORDER-BOTTOM: #000000 1px solid" width="12%">Amount</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Zhejiang Kangli Metal Manufacturing Company.</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 4,749,766 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Zhejiang Shuguang industrial Co., Ltd.</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 4,749,766 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Yongkang Angtai Trade Co., Ltd.</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 791,628 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Nanlong Group Co., Ltd.</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 9,499,533 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Total</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 19,790,693 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table> On December 26, 2012, the Company entered into a guarantee contract to serve as the guarantor for the bank loan borrowed from Shanghai Bank Hangzhou branch in the amount of $4,749,766 by Zhejiang Kangli Metal Manufacturing Company. (“ZKMMC”) for the period from December 26, 2012 to December 26, 2013. ZKMMC is not related to the Company. Under this guarantee contract, the Company shall perform all obligations of ZKMMC under the loan contract if ZKMMC fails to perform its obligations as set forth in the loan contract. On October 9, 2012, the Company entered into a guarantee contract to serve as the guarantor for the bank loan borrowed from Shenzhen Development Bank (changed the name to PingAn Bank in 2012) Hangzhou branch in the amount of $4,749,766 by Zhejiang Shuguang industrial Co., Ltd. (“ZSICL”) for the period from October 9, 2012 to October 9, 2013. ZSICL is not related to the Company. Under these guarantee contracts, the Company shall perform all obligations of ZSICL under the loan contracts if ZSICL fails to perform its obligations as set forth in the loan contracts. On January 9, 2012, the Company entered into a guarantee contract to serve as the guarantor for the bank loans borrowed from China Communication Bank Jinhua Branch in the amount of $791,628 by Yongkang Angtai Trade Co., Ltd. (“YATCL”) for the period from January 9, 2012 to January 9,, 2013. YATCL is not related to the Company. Under these guarantee contracts, the Company shall perform all obligations of YATCL under the loan contracts if YATCL fails to perform its obligations as set forth in the loan contracts. On August 7, 2012 and December 26, 2012, the Company entered into two guarantee contracts to serve as the guarantor for the bank loans borrowed from Shanghai Pudong Development Bank Jinhua Branch and Shanghai Bank Hangzhou branch in the amount of $3,166,511 and 6,333,022 respectively by Nanlong Group Co., Ltd. (“NGCL”) for the period from August 7, 2012 to March 6, 2013, and December 26, 2012 to December 26, 2013 respectively. NGCL is not related to the Company. Under this guarantee contract, the Company shall perform all obligations of NGCL under the loan contract if NGCL fails to perform its obligations as set forth in the loan contract. (2) Pledged collateral for a third party’s bank loans As of December 31, 2012, the Company provided the land use rights and plant and equipment pledged as collateral for the following third party: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left">Zhejiang Mengdeli Electric Co., Ltd.:</td> <td align="left" width="1%"> </td> <td align="left" width="12%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Land use rights net book value</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 3,500,426 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Plant and equipment net book value</td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 2,834,569 </td> <td align="left" width="2%"> </td> </tr> </table> It is a common business practice among companies in the region of China where Kandi is located to exchange guarantees for bank debt with no consideration given. It is considered a “favor for favor” business practice and is commonly required by the lending banks as in these cases. These companies provided guarantees for the Company’s bank loans as well. The banks involved in these guarantee transactions typically allow a maximum loan amount based on a 30% to 70% discount on the net book value of the pledged collateral. Also see Note 15. (b) Pending litigations There are two lawsuits currently pending in Ripley County, Missouri against the Company and its subsidiary Zhejiang Kandi Vehicles Co., Ltd.(“Kandi Vehicles”) as well as other parties, Kandi Investment Group and SunL, and they are related to two persons who died in an accident on March 3, 2006 while operating a go-cart allegedly manufactured by Kandi Vehicles. Kandi Investment Group was a major shareholder of Kandi Vehicles but it transferred all its equity in Kandi Vehicles to Continental Development Limited in November 2006. Since then, Kandi Investment Group is unrelated to the Company or its affiliates. The cases were filed in 2009 and are known as Elder vs. SunL Group and Griffen vs. SunL Group. In March, 2010, the local trial court entered two default judgments in the amount of $20,000,000 each against Kandi Vehicles and other parties including Kandi Investment but not the Company. The lawsuit and default judgments didn’t come to the Company or Kandi Vehicles’ attention until May or June 2010. The Company had not been served or notified of the lawsuits and learned of their existence and of the default judgment in the course of commercial discussions with another of the defendants in the cases. Currently, the Company and Kandi Vehicles have filed answers to the complaint denying any culpability. In addition, the Company requested that the court set aside the default judgments against Kandi Vehicles, a request granted, by the court, on February 28, 2011. On March 3, 2011, the plaintiffs subsequently appealed the court order vacating the default judgments; however, the plaintiffs have since voluntarily withdrawn their appeal. The Company intends to defend these cases vigorously and expects to prevail in this lawsuit since the Company including its subsidiaries did not manufacture the subject vehicle in the accident. This case is set for trial in July 2013. (c) Asset purchase On February 27,2013, Kandi Vehicles entered into an Assets Purchase Agreement (the “Purchase Agreement”) with Zhejiang New Energy Vehicle System Co., Ltd., a limited liability company in China (“New Energy”). The Purchase Agreement finalized the arrangements the Company negotiated in 2012 for the purchase by Kandi Vehicles of certain electric vehicle (“EV”) operating assets of New Energy, including a pressing assembly line, a welding assembly line, a coating assembly line, a general assembly line and related equipment, facilities, building and land use rights (the “Purchased Assets”) for a total cash price of RMB272,767,553 (approximately $43,296,437). The price was based upon a third-party appraisal prepared by Jinhua Jinehen Assets Appraisal Co., Ltd. In connection with the initiation of exclusive negotiations with New Energy and pursuant to a letter of intent (“LOI”) between the parties on November 20, 2012, the Company, as of December 31, 2012, delivered RMB154,100,000 (approximately $24,397967) as a refundable deposit. Pursuant to the LOI, the deposit was to be applied to the purchase price and to be returned to Kandi Vehicles within 5 days upon the termination of negotiations if the parties could not reach a final agreement. Pursuant to the Purchase Agreement, the remainder of the purchase price will be delivered within one month of the completion of the transfer by New Energy of titles to and ownership of the Purchased Assets. Under the Purchase Agreement, New Energy is to complete the transfer of ownership and title (for the land, land use rights and operating and other assets) within three months of the signing of the Purchase Agreement. The Purchase Agreement contains customary representations and warranties and pre- and post-closing covenants of each party. Breaches of the representations and warranties are subject to customary indemnification provisions.

</us-gaap:CommitmentsAndContingenciesDisclosureTextBlock>

<kndi:ScheduleOfGuaranteesForBankLoansTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left">Guarantee provided to</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="center" style="BORDER-BOTTOM: #000000 1px solid" width="12%">Amount</td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Zhejiang Kangli Metal Manufacturing Company.</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 4,749,766 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Zhejiang Shuguang industrial Co., Ltd.</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 4,749,766 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Yongkang Angtai Trade Co., Ltd.</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> 791,628 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Nanlong Group Co., Ltd.</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="12%"> 9,499,533 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Total</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" valign="bottom" width="12%"> 19,790,693 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> </table>

</kndi:ScheduleOfGuaranteesForBankLoansTableTextBlock>

<kndi:ScheduleOfGuaranteesForBankLoansZeroOneThreeOneZeroOneSevenFourNinegTwokVWFourNinemTHpF contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4749766 </kndi:ScheduleOfGuaranteesForBankLoansZeroOneThreeOneZeroOneSevenFourNinegTwokVWFourNinemTHpF>

<kndi:ScheduleOfGuaranteesForBankLoansZeroOneThreeOneZeroOneSevenFourNinexmFLZyThreebOnezsy contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4749766 </kndi:ScheduleOfGuaranteesForBankLoansZeroOneThreeOneZeroOneSevenFourNinexmFLZyThreebOnezsy>

<kndi:ScheduleOfGuaranteesForBankLoansZeroOneThreeOneZeroOneSevenFourNinegSixJRZsXMxKGg contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 791628 </kndi:ScheduleOfGuaranteesForBankLoansZeroOneThreeOneZeroOneSevenFourNinegSixJRZsXMxKGg>

<kndi:ScheduleOfGuaranteesForBankLoansZeroOneThreeOneZeroOneSevenFourNineVEightcOneEightyZJyZxv contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 9499533 </kndi:ScheduleOfGuaranteesForBankLoansZeroOneThreeOneZeroOneSevenFourNineVEightcOneEightyZJyZxv>

<kndi:ScheduleOfGuaranteesForBankLoansZeroOneThreeOneZeroOneSevenFourNineTSixsVVSfFFivegZF contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 19790693 </kndi:ScheduleOfGuaranteesForBankLoansZeroOneThreeOneZeroOneSevenFourNineTSixsVVSfFFivegZF>

<kndi:ScheduleForPledgedCollateralForAThirdPartysBankLoansTableTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left">Zhejiang Mengdeli Electric Co., Ltd.:</td> <td align="left" width="1%"> </td> <td align="left" width="12%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Land use rights net book value</td> <td align="left" bgcolor="#e6efff" width="1%">$</td> <td align="right" bgcolor="#e6efff" width="12%"> 3,500,426 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Plant and equipment net book value</td> <td align="left" width="1%">$</td> <td align="right" width="12%"> 2,834,569 </td> <td align="left" width="2%"> </td> </tr> </table>

</kndi:ScheduleForPledgedCollateralForAThirdPartysBankLoansTableTextBlock>

<kndi:ScheduleForPledgedCollateralForAThirdPartysBankLoansZeroOneThreeOneZeroOneSevenFourNineDpcTWVRvrOnetV contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3500426 </kndi:ScheduleForPledgedCollateralForAThirdPartysBankLoansZeroOneThreeOneZeroOneSevenFourNineDpcTWVRvrOnetV>

<kndi:ScheduleForPledgedCollateralForAThirdPartysBankLoansZeroOneThreeOneZeroOneSevenFourNineSevenkPbTBMSevenwxdb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 2834569 </kndi:ScheduleForPledgedCollateralForAThirdPartysBankLoansZeroOneThreeOneZeroOneSevenFourNineSevenkPbTBMSevenwxdb>

<kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineyyLHMcOneZeroBFiveTwoP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4749766 </kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineyyLHMcOneZeroBFiveTwoP>

<kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineWLzDGTbFivemGkb contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 4749766 </kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineWLzDGTbFivemGkb>

<kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNinecXTwoSixGbSixXPtKx contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 791628 </kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNinecXTwoSixGbSixXPtKx>

<kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNinesdFSevenWRFFbsxT contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 3166511 </kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNinesdFSevenWRFFbsxT>

<kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNinehSBNinezThreeSevenXJSevenKt contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="0"> 6333022 </kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNinehSBNinezThreeSevenXJSevenKt>

<kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineFPRnTwolfLFivehThreeSeven contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.30 </kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineFPRnTwolfLFivehThreeSeven>

<kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNinekvTqDFiveOneMFzwS contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.70 </kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNinekvTqDFiveOneMFzwS>

<kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineKFsHpkTwomgWCB contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 20000000 </kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineKFsHpkTwomgWCB>

<kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineFourmpFWTwoOnevLXdc contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="cny" decimals="0"> 272767553 </kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineFourmpFWTwoOnevLXdc>

<kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineTmKTqnwrLSixnNine contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 43296437 </kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineTmKTqnwrLSixnNine>

<kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNinegZDRvzgEighthdOneP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="cny" decimals="0"> 154100000 </kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNinegZDRvzgEighthdOneP>

<kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineXsdhSevenzlKztSd contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 24397 </kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineXsdhSevenzlKztSd>

<kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineVKkqTwoTMTGCQN contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="d" decimals="0"> 5 </kndi:CommitmentsAndContingenciesZeroOneThreeOneZeroOneSevenFourNineVKkqTwoTMTGCQN>

<us-gaap:SubsequentEventsTextBlock contextRef="cx_01_January_2012_TO_31_December_2012">

NOTE 24 - SUBSEQUENT EVENT On February 1, 2013, our wholly owned subsidiary, Kandi Vehicles signed a cooperation framework agreement with Shanghai Maple Guorun Automobile Co., Ltd. (“Shanghai Maple”), a 99% owned subsidiary of Geely Automobile Holdings Ltd.(“Geely Auto”), to establish a joint venture company, named Zhejiang Kandi Electric Vehicles Investment Co, Ltd. (the “JV Company”). The purpose of JV Company is to engage in the investment, research and development, production, marketing and sales of electronic vehicles in China. Geely Auto is one of the largest and most well-known automobile manufacturers in China. Pursuant to the terms of the framework agreement, the JV Company will be owned 50% by Shanghai Maple and 50% by Kandi Vehicles. The registered capital of the JV Company will be RMB1,000,000,000, with 50% to be contributed by each party. Upon the establishment of the JV Company, the JV Company will acquire certain assets from Kandi and Geely Auto in order for the JV Company to possesse the necessary properties, assets and technologies to conduct the EV business. On February 27,2013, Kandi Vehicles entered into an Assets Purchase Agreement (the “Purchase Agreement”) with Zhejiang New Energy Vehicle System Co., Ltd., a limited liability company in China (“New Energy”). The Purchase Agreement finalized the arrangements the Company negotiated in 2012 for the purchase by Kandi Vehicles of certain electric vehicle (“EV”) operating assets of New Energy, including a pressing assembly line, a welding assembly line, a coating assembly line, a general assembly line and related equipment, facilities, building and land use rights (the “Purchased Assets”) for a total cash price of RMB272,767,553 (approximately $43,296,437). The price was based upon a third-party appraisal prepared by Jinhua Jinehen Assets Appraisal Co., Ltd. In connection with the initiation of exclusive negotiations with New Energy and pursuant to a letter of intent (“LOI”) between the parties on November 20, 2012, the Company, as of December 31, 2012, delivered RMB154,100,000 (approximately $24,397967) as a refundable deposit. Pursuant to the LOI, the deposit was to be applied to the purchase price and to be returned to Kandi Vehicles within 5 days upon the termination of negotiations if the parties could not reach a final agreement. Pursuant to the Purchase Agreement, the remainder of the purchase price will be delivered within one month of the completion of the transfer by New Energy of titles to and ownership of the Purchased Assets. Under the Purchase Agreement, New Energy is to complete the transfer of ownership and title (for the land, land use rights and operating and other assets) within three months of the signing of the Purchase Agreement. The Purchase Agreement contains customary representations and warranties and pre- and post-closing covenants of each party. Breaches of the representations and warranties are subject to customary indemnification provisions. On March 13, 2013, the Company's wholly owned subsidiary, Kandi Vehicles established Kandi Electric Vehicles (Changxing) Co., Ltd. (“Kandi Changxing”) in the Changxing (National) Economic and Technological Development Zone to meet the requirements of the previously announced cooperation agreement with Geely Auto. The newly established company is a wholly owned subsidiary of Kandi Vehicles that will specialize in EV production. Kandi Changxing has been formed with the assets that Kandi Vehicles recently purchased from Zhejiang New Energy Vehicle Systems Co., Ltd., as well as certain molds and properties originally owned by Kandi Vehicles. Kandi Changxing is expected to begin production on March 29, 2013. As disclosed in Note 19, as of December 31, 2012, there were 2,274,851 investor and placement agent warrants outstanding. As of the filing date of this Form 10-K, the total number of outstanding warrants has been reduced by exercise and expiration, to 1,210,912. As set forth on the Company’s Current Report on Form 8-K, filed March 25, 2013, on March 22, 2013, Kandi Vehicles entered into the Joint Venture Agreement of Establishment of Zhejiang Kandi Electric Vehicles Co., Ltd. with Shanghai Maple Guorun Automobile Co., Ltd., a 99% owned subsidiary of Geely Automobile Holdings Ltd. which is listed with Hong Kong Exchanges and Clearing Limited.

</us-gaap:SubsequentEventsTextBlock>

<kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineQkZvDtzdzThreeSeveny contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.99 </kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineQkZvDtzdzThreeSeveny>

<kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNinerCqbltHThreeKwEightm contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.50 </kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNinerCqbltHThreeKwEightm>

<kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineThreeXJwdJrFivePhEightr contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.50 </kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineThreeXJwdJrFivePhEightr>

<kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineBDHGrdJkyCRF contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="cny" decimals="0"> 1000000000 </kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineBDHGrdJkyCRF>

<kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineVdByQSevenccKmZSix contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.50 </kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineVdByQSevenccKmZSix>

<kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineNinepplGbFourLqZeroXW contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="cny" decimals="0"> 272767553 </kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineNinepplGbFourLqZeroXW>

<kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineXTmnvsmryyRh contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 43296437 </kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineXTmnvsmryyRh>

<kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineqrrdFvNineZeroyXxP contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="cny" decimals="0"> 154100000 </kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineqrrdFvNineZeroyXxP>

<kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNinesgmNQThreeWGZJwC contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="usd" decimals="0"> 24397 </kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNinesgmNQThreeWGZJwC>

<kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineHhLDGGlsFourCXF contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="d" decimals="0"> 5 </kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineHhLDGGlsFourCXF>

<kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineMTOneHvTwoMtkyPt contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="0"> 2274851 </kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineMTOneHvTwoMtkyPt>

<kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNinelyOneOneNZNpRNineNn contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="0"> 1210912 </kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNinelyOneOneNZNpRNineNn>

<kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineTwoXwnNZeroZpPHgc contextRef="cx_01_January_2012_TO_31_December_2012" unitRef="pure" decimals="2"> 0.99 </kndi:SubsequentEventZeroOneThreeOneZeroOneSevenFourNineTwoXwnNZeroZpPHgc>

</xbrl>

5 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 5/27/14  SEC                               UPLOAD¶     9/22/17    1:128K Kandi Technologies Group, Inc.
 3/14/14  SEC                               UPLOAD¶     9/22/17    1:135K Kandi Technologies Group, Inc.
 1/29/14  SEC                               UPLOAD¶     9/22/17    1:147K Kandi Technologies Group, Inc.
12/19/13  SEC                               UPLOAD¶     9/22/17    1:157K Kandi Technologies Group, Inc.
11/12/13  SEC                               UPLOAD¶     9/22/17    1:182K Kandi Technologies Group, Inc.

↑Top

Filing Submission 0001062993-13-001563 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Kandi Technologies Group, Inc. – ‘10-K’ for 3/25/13 – ‘EX-101.INS’

On: Monday, 4/1/13, at 9:03am ET · For: 3/25/13 · Accession #: 1062993-13-1563 · File #: 1-33997

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34Filing Table of Contents

‘EX-101.INS’ — XBRL Instance — kndi-20121231

This Exhibit is an XBRL XML File.

5 Subsequent Filings that Reference this Filing

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents