• Kandi Technologies Reports 2023 Financial Results

    Source: Nasdaq GlobeNewswire / 14 Mar 2024 16:05:19   America/New_York

    JINHUA, China, March 14, 2024 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the “Company”, “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the full year ended December 31, 2023.

    Full Year 2023 Highlights

    • Total net revenues increased by 4.9% to $123.6 million, from $117.8 million in 2022.
    • As the primary driver of total revenue, off-road vehicles and associated parts sales increased by 51.5% to $107.0 million from $70.6 million in 2022.
    • Gross profit increased by 112% to $41.4 million, from $19.5 million in 2022.
    • Net income was $1.7 million, or $0.02 income per fully diluted share, compared to a net loss of $12.9 million, or $0.17 loss per fully diluted share for 2022.
    • The Company has a strong working capital position. Cash and equivalents, restricted cash, certificate of deposit and notes receivable totaled $252.1 million as of December 31, 2023.

    Dr. Xueqin Dong, CEO of Kandi commented, “We concluded the challenging year of 2023, and it's with great pride that we overcame the challenges in 2023 and made significant strides. In particular, the off-road EVs and related parts sector were the main driver of our record-high revenue over the past three years. In 2023, we developed and launched models such as the all-electric UTV and electric mini golf carts. We acquired Northern Group to expand our sales channels. Moreover, we further strengthened our partnership with Lowe’s, expanding to more than 10 super centers in 2024, thereby broadening our market coverage in North America. We're proud to return to profitability in 2023, marking an important milestone in our development journey.”

    Dr. Dong concluded, “As we move into 2024, we will increase our R&D investment and launch more competitive all-electric off-road vehicle products, demonstrating our confidence in the future development of the company and our commitment to delivering shareholder value. We are poised to capture the burgeoning demand for fuel-to-electric conversion in off-road vehicles. Building on this confidence, we expect significant growth in 2024, aiming to increase the value we offer to our customers and shareholders.”

    Full Year 2023 Financial Results

    Net Revenues and Gross Profit (in USD millions)

      2023  2022 Y-o-Y%
    Net Revenues$123.6 $117.8 4.9% 
    Gross Profit$41.4 $19.5 112% 
    Gross Margin% 33.5%  16.6% - 


    In 2023, our net revenues rose to $123.6 million, an approximate 5% increase from 2022, driven by stronger sales of off-road vehicles, notably the gross profit of our new crossover golf carts sold in the U.S. surged 112% to $41.4 million, with gross margin doubling from 16.6% to 33.5%, reflecting a profitable shift in product mix towards higher-margin off-road vehicles.

    Operating Loss (in USD millions)

      2023  2022 Y-o-Y%
    Operating Expenses ($54.4)  ($47.2) 15.3% 
    Loss from Operations ($13.1)  ($27.7) -52.8% 
    Operating Margin% -10.6%  -23.5% - 


    Operating expenses climbed to $54.4 million from $47.2 million, driven by higher spending on sales and marketing for our higher volume of production exportation to U.S. The operational loss narrowed to $13.1 million, marking an improvement from 2022, primarily attributed to a higher concentration of sales from off-road vehicles with larger gross margin.

    Net Income/Loss

       2023 2022 Y-o-Y% 
    Net Income (Loss) 
    (in USD millions)    		$1.7 ($12.9) - 
    Net Income (Loss) per Share, Basic and Diluted$0.02 ($0.17) - 


    In 2023, our net income surged to $1.7 million, a remarkable turnaround from the $12.9 million loss in 2022, driven by sustained enhancements in gross profit, consistent with the trends observed in the first three quarters of 2023.

    Full Year 2023 Conference Call Details

    The Company has scheduled a conference call and live webcast to discuss its financial results at 8:00 A.M. Eastern Time (8:00 P.M. Beijing Time) on Friday, March 15, 2024. Management will deliver prepared remarks to be followed by a question and answer session. 

    The dial-in details for the conference call are as follows:

    The live audio webcast of the call can also be accessed by visiting Kandi's Investor Relations page on the Company's website at http://www.kandivehicle.com. An archive of the webcast will be available on the Company's website following the live call.

    About Kandi Technologies Group, Inc.

    Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua New Energy Vehicle Town, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”), formerly, Zhejiang Kandi Vehicles Co., Ltd. and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC and Northern Group, Inc. Zhejiang Kandi Technologies has established itself as one of China's leading manufacturers of pure electric vehicle parts and off-road vehicles. The Company routinely posts important updates on its website at www.kandivehicle.com.

    Safe Harbor Statement

    This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.

    Follow us on Twitter: @ Kandi_Group

    Contacts:

    Kandi Technologies Group, Inc.
    Ms. Kewa Luo
    +1 (212) 551-3610
    IR@kandigroup.com

    The Blueshirt Group
    Mr. Gary Dvorchak, CFA
    gary@blueshirtgroup.com

    –Tables Below –


    KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
     
      December 31,
    2023    		  December 31,
    2022    		 
           
    CURRENT ASSETS      
    Cash and cash equivalents $33,756,941  $84,063,717 
    Restricted cash  59,873,127   66,976,554 
    Certificate of deposit  33,947,212   81,191,191 
    Accounts receivable (net of allowance for doubtful accounts of $2,886,223 and $2,285,386 as of December 31, 2023 and December 31, 2022, respectively)  18,951,745   38,150,876 
    Inventories  61,551,268   40,475,366 
    Notes receivable  124,473,111   434,461 
    Other receivables  6,476,542   11,912,615 
    Prepayments and prepaid expense  1,909,094   2,970,261 
    Advances to suppliers  2,609,098   3,147,932 
    TOTAL CURRENT ASSETS  343,548,138   329,322,973 
             
    NON-CURRENT ASSETS        
    Property, plant and equipment, net  98,803,772   97,168,753 
    Intangible assets, net  6,395,825   7,994,112 
    Land use rights, net  2,754,442   2,909,950 
    Construction in progress  -   199,837 
    Deferred tax assets  814,610   1,432,527 
    Long-term investment  -   144,984 
    Goodwill  33,146,682   33,178,229 
    Other long-term assets  9,993,130   10,630,911 
    TOTAL NON-CURRENT ASSETS  151,908,461   153,659,303 
             
    TOTAL ASSETS $495,456,599  $482,982,276 
             
    CURRENT LIABILITIES        
    Accounts payable $28,744,854  $35,321,262 
    Other payables and accrued expenses  7,252,814   14,131,414 
    Short-term loans  9,072,336   5,569,154 
    Notes payable  24,071,461   19,123,476 
    Income tax payable  2,130,083   1,270,617 
    Other current liabilities  5,402,081   6,089,925 
    TOTAL CURRENT LIABILITIES  76,673,629   81,505,848 
             
    NON-CURRENT LIABILITIES        
    Long-term loans  8,389,163   - 
    Deferred taxes liability  963,691   1,378,372 
    Contingent consideration liability  2,693,000   1,803,000 
    Other long-term liabilities  227,024   602,085 
    TOTAL NON-CURRENT LIABILITIES  12,272,878   3,783,457 
             
    TOTAL LIABILITIES  88,946,507   85,289,305 
             
    STOCKHOLDER’S EQUITY        
    Common stock, $0.001 par value; 100,000,000 shares authorized; 87,532,800 and 77,668,730 shares issued and 87,348,234 and 74,180,171 outstanding at December 31,2023 and December 31,2022, respectively  87,533   77,669 
    Less: Treasury stock (184,566 shares with average price of $2.75 and 3,488,559 shares with average price of $2.81 at December 31, 2023 and December 31, 2022, respectively)  (507,013)  (9,807,820)
    Additional paid-in capital  457,847,155   451,373,645 
    Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at December 31, 2023 and December 31, 2022, respectively)  (16,332,633)  (16,339,765)
    Accumulated other comprehensive loss  (36,970,066)  (28,333,239)
    TOTAL KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS’ EQUITY  404,124,976   396,970,490 
             
    Non-controlling interests  2,385,116   722,481 
    TOTAL STOCKHOLDERS’ EQUITY  406,510,092   397,692,971 
             
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $495,456,599  $482,982,276 
             


    KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS AND
    COMPREHENSIVE INCOME (LOSS)
    FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
     
      Years Ended 
      December
    31, 2023    		  December
    31, 2022    		 
           
    REVENUES, NET $123,599,232  $117,813,049 
             
    COST OF GOODS SOLD  (82,229,209)  (98,295,323)
             
    GROSS PROFIT  41,370,023   19,517,726 
             
    OPERATING EXPENSE:        
    Research and development  (4,265,176)  (6,029,608)
    Selling and marketing  (13,335,950)  (5,501,475)
    General and administrative  (35,381,496)  (32,325,889)
    Impairment of goodwill  (496,981)  (642,665)
    Impairment of long-lived assets  (942,591)  (2,697,521)
    TOTAL OPERATING EXPENSE  (54,422,194)  (47,197,158)
             
    LOSS FROM OPERATIONS  (13,052,171)  (27,679,432)
             
    OTHER INCOME (EXPENSE):        
    Interest income  9,984,558   6,427,502 
    Interest expense  (1,327,341)  (707,488)
    Change in fair value of contingent consideration  1,803,000   4,196,995 
    Government grants  2,017,551   1,639,328 
    Other income, net  4,047,074   2,784,561 
    TOTAL OTHER INCOME , NET  16,524,842   14,340,898 
             
    INCOME (LOSS) BEFORE INCOME TAXES  3,472,671   (13,338,534)
             
    INCOME TAX (EXPENSE) BENEFIT  (1,802,904)  487,510 
             
    NET INCOME (LOSS)  1,669,767   (12,851,024)
             
    LESS: NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTS  1,662,635   (727,361)
             
    NET INCOME (LOSS) ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS  7,132   (12,123,663)
             
    OTHER COMPREHENSIVE LOSS        
    Foreign currency translation adjustment  (8,636,827)  (28,585,025)
             
    COMPREHENSIVE LOSS $(6,967,060) $(41,436,049)
             
    WEIGHTED AVERAGE SHARES OUTSTANDING BASIC  78,781,094   75,571,702 
    WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED  79,902,891   75,571,702 
             
    NET INCOME (LOSS) PER SHARE, BASIC $0.02  $(0.17)
    NET INCOME (LOSS) PER SHARE, DILUTED $0.02  $(0.17)
             


    KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
    FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
     
      Number of
    Outstanding
    Shares    		  Common
    Stock    		  Treasury
    Stock    		  Additional
    Paid-in
    Capital    		  Accumulated
    Deficit    		  Accumulated
    Other
    Comprehensive
    Income
    (Loss）    		  Non-
    controlling
    interests    		  Total 
    BALANCE AS OF
    DECEMBER 31, 2021    		  77,385,130  $77,385  $(2,392,203) $449,479,461  $(4,216,102) $251,786  $-  $443,200,327 
    Stock issuance and award  283,600   284   -   746,636   -   -   -   746,920 
    Stock based compensation  -   -   -   1,231,566   -   -   -   1,231,566 
    Stock buyback  -   -   (7,415,617)  (84,018)  -   -   -   (7,499,635)
    Capital contribution from shareholder  -   -   -   -   -   -   1,449,842   1,449,842 
    Net loss  -   -   -   -   (12,123,663)  -   (727,361)  (12,851,024)
    Foreign currency translation  -   -   -   -   -   (28,585,025)  -   (28,585,025)
    BALANCE AS OF
    DECEMBER 31, 2022    		  77,668,730  $77,669  $(9,807,820) $451,373,645  $(16,339,765) $(28,333,239) $722,481  $397,692,971 
    Stock issuance and award  11,685,968   11,686   -   9,357,192   -   -   -   9,368,878 
    Stock based compensation  -   -   -   3,476,058   -   -   -   3,476,058 
    Stock buyback  -   -   (507,013)  (3,731)  -   -   -   (510,744)
    Cancellation of the Treasury Stock  (3,488,559)  (3,489)  9,807,820   (9,804,331)  -   -   -   - 
    Stock option exercise  1,666,661   1,667   -   3,448,322   -   -   -   3,449,989 
    Net income  -   -   -   -   7,132   -   1,662,635   1,669,767 
    Foreign currency translation  -   -   -   -   -   (8,636,827)  -   (8,636,827)
    BALANCE AS OF
    DECEMBER 31, 2023    		  87,532,800  $87,533  $(507,013) $457,847,155  $(16,332,633) $(36,970,066) $2,385,116  $406,510,092 
                                     


    KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
     
      Years Ended 
      December
    31, 2023    		  December
    31, 2022    		 
           
    CASH FLOWS FROM OPERATING ACTIVITIES:      
    Net income (loss) $1,669,767  $(12,851,024)
    Adjustments to reconcile net (loss) income to net cash provided by operating activities        
    Depreciation and amortization  11,913,647   12,427,973 
    Impairments  1,439,573   3,340,186 
    Provision of allowance for doubtful accounts  656,330   (542,801)
    Deferred taxes  203,236   (461,045)
    Loss from long-term Investment  141,389   - 
    Change in fair value of contingent consideration  (1,803,000)  (4,196,995)
    Stock award and stock based compensation expense  11,059,801   1,926,376 
             
    Changes in operating assets and liabilities:        
             
    Accounts receivable  10,560,521   (20,965,140)
    Notes receivable  (123,992,862)  4,726,570 
    Inventories  (21,531,323)  (9,145,298)
    Other receivables and other assets  5,165,337   (4,932,463)
    Advances to supplier and prepayments and prepaid expenses  1,491,762   16,275,678 
             
    Increase (Decrease) In:        
    Accounts payable  38,603,301   62,592,477 
    Other payables and accrued liabilities  (5,062,494)  7,842,715 
    Notes payable  (32,629,627)  (24,533,127)
    Income tax payable  954,006   (25,171)
    Net cash (used in) provided by operating activities $(101,160,636) $31,478,911 
             
    CASH FLOWS FROM INVESTING ACTIVITIES:        
    Purchases of property, plant and equipment, net  (13,172,512)  (3,690,235)
    Payment for construction in progress  (75,185)  (129,894)
    Certificate of deposit  45,244,390   (31,210,986)
    Acquisition of NGI  282,135   - 
    Net cash provided by (used in) investing activities $32,278,828  $(35,031,115)
             
    CASH FLOWS FROM FINANCING ACTIVITIES:        
    Proceeds from short-term loans  23,420,534   30,765,776 
    Repayments of short-term loans  (19,709,663)  (28,357,211)
    Repayments of long-term loans  (46,426)  - 
    Proceeds from long-term loans  8,225,000   - 
    Contribution from non-controlling shareholder  -   757,981 
    Purchase of treasury stock  (510,745)  (7,499,634)
    Proceeds from exercises stock options, stock awards and other financing  3,449,988   - 
    Net cash provided by (used in) financing activities $14,828,688  $(4,333,088)
             
    NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH $(54,053,120) $(7,885,292)
    Effect of exchange rate changes $(3,357,083) $(9,750,444)
    CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR $151,040,271  $168,676,007 
             
    CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD $93,630,068  $151,040,271 
    -CASH AND CASH EQUIVALENTS AT END OF PERIOD  33,756,941   84,063,717 
    -RESTRICTED CASH AT END OF PERIOD  59,873,127   66,976,554 
             
    SUPPLEMENTARY CASH FLOW INFORMATION        
    Income taxes paid $311,504  $350,002 
    Interest paid $965,025  $345,451 
             
    SUPPLEMENTAL NON-CASH DISCLOSURES:        
    Contribution from non-controlling shareholder by inventories, fixed assets and intangible assets $-  $393,986 
    Common stock issued for settlement of payables related to acquisitions (see Note 19) $1,812,005  $- 
             

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