@Geely: Kandi Technologies Reports First Quarter 2021 Financial Results

–Revenue of $16 million, +151% y/y–

–Working Capital of $244 million—

JINHUA, China, May 10, 2021 (GLOBE NEWSWIRE) — Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced financial results for the first quarter of 2021.

First Quarter Highlights

  • Total revenues increased by 150.7% to $16.0 million, from $6.4 million in the same period of 2020.
  • EV parts sales increased by 206.0% to $6.4 million, compared to $2.1 million in the same period of 2020.
  • Off-road vehicles sales increased by 39.2% to $5.6 million, compared to $4.0 million in the same period of 2020.
  • Electric Scooters, Electric Self-Balancing Scooters and associated parts sales were $3.9 million. As a new business, there was no revenue in the same period of 2020.
  • Gross margin was 27.3%, compared to 18.3% for the same period of 2020.
  • Net loss was $6.4 million, or $0.08 loss per fully diluted share due to investment in R&D for new products, compared to a net loss of $1.6 million, or $0.03 loss per fully diluted share for the same period of 2020.
  • As of March 31, 2021, working capital was $244.1 million; cash, cash equivalents, restricted cash and certificate of deposit totaled $162.5 million.

Mr. Hu Xiaoming, Chairman and CEO of Kandi commented: “The most promising EV opportunities we see today are short-distance small EVs in China and high-end electric Utility Terrain Vehicles in the U.S. We are focused on mass markets by developing vehicles for these segments with a cost of RMB 30,000 (approximately US$4,663) or less. For China we are developing a ‘neighborhood EV’. For the U.S., we are working on a fully enclosed high-end air-conditioned electric 4WD UTV. We expect to launch both products this year.”

Hu continued, “We intend to pursue the EV market more aggressively now that we are no longer constrained by the non-compete restrictions of our affiliation with Fengsheng. We spent a lot on R&D in the quarter, as we start to develop a new EV model. We are also considering EV product line expansion through acquisition, and are in various stages of discussions with several potential target companies.”

Turning to Kandi’s facility strategy, Hu elaborated, “In China our Jinhua facility relocation work was completed in the first quarter. We finished relocating production and offices to the new industrial park and vacated the old factory property. In early April, officials of the Jinhua Development Zone inspected and approved the work. We expect to soon receive the remaining payment of RMB 162 million, or approximately USD 25 million. Meanwhile, in late April our U.S. subsidiary SC Autosports moved its team to our newly purchased building in Dallas.”

Mr. Hu concluded, “Although our net loss grew in the first quarter, this was due to our extensive investment in R&D. Sales were solid and the EV product segment should soon recover as we execute our growth plan. We are well-funded, having collected payments for Fengsheng and the relocation. With our strong balance sheet and leading technologies, we intend to pursue exciting EV opportunities such as battery swap and the ride-sharing platform, among others.”

Q1 2021 Financial Results

Net Revenues and Gross Profit (in USD millions)

  1Q21 1Q20 Y/Y%
Net Revenue $16.0  $6.4  150.7%
Gross Profit $4.4  $1.2  273.0%
Gross Margin  27.3%  18.3% – 

Net revenues of $16.0 million increased 150.7% from the first quarter of 2020. The increase in revenue was primarily due to growth in EV parts and the new segment of Electric Scooters, Electric Self-Balancing Scooters and associated parts.

Operating Income/Loss (in USD millions)

  1Q21 1Q20 Y/Y%
Operating Expenses ($27.2) ($4.6) 493.2%
Operating Loss ($22.8) ($3.4) 568.4%
Operating Margin  -143%  -54% – 

Total operating expenses were $27.2 million, compared with $4.6 million in the first quarter of 2020. The increase was due to R&D spending to develop new products.

Net Loss (in USD millions)

  1Q21 1Q20 Y/Y%
Net Loss ($6.4) ($1.6) 306.6%
Loss per Weighted Average Common Share ($0.08) ($0.03) – 
Loss per Weighted Average Diluted Share ($0.08) ($0.03) – 

Net loss was $6.4 million, compared with a net loss of $1.6 million in the same period of 2020. The greater loss was primarily attributable to increased R&D expense for new products.

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 Monday, May 10, 2021. 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 Economic Development Zone, 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. Zhejiang Kandi Technologies has established itself as one of China’s leading manufacturers of pure electric vehicle parts and off-road vehicles.

More information about KNDI is available on the Company’s corporate website at http://www.kandivehicle.com. The Company routinely posts important information on its website.

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
CONDENSED CONSOLIDATED BALANCE SHEETS

    March 31,
2021
    December 31,
2020
 
    (UNAUDITED)        
Current assets            
Cash and cash equivalents   $ 146,714,469     $ 142,078,190  
Restricted cash     480,604       442,445  
Certificate of deposit     15,258,789        
Accounts receivable (net of allowance for doubtful accounts of $109,833 and
$110,269 as of March 31, 2021 and December 31, 2020, respectively)
    49,888,350       38,547,137  
Inventories     20,481,613       19,697,383  
Notes receivable     18,409,729       31,404,630  
Other receivables     38,596,446       1,875,245  
Prepayments and prepaid expense     14,910,522       13,708,149  
Advances to suppliers     16,731,376       36,733,182  
Amount due from the Affiliate Company           21,742,226  
Amount due from related party     883,484       886,989  
TOTAL CURRENT ASSETS     322,355,382       307,115,576  
                 
NON-CURRENT ASSETS                
Property, plant and equipment, net     69,203,628       65,402,680  
Intangible assets, net     3,056,720       3,232,753  
Land use rights, net     3,222,094       3,257,760  
Construction in progress     16,864,585       16,317,662  
Deferred taxes assets     8,473,546       8,964,946  
Long term investment     152,588       45,958  
Investment in the Affiliate Company           28,892,638  
Goodwill     29,621,966       29,712,383  
Other long term assets     31,621,451       32,307,484  
TOTAL NON-CURRENT ASSETS     162,216,578       188,134,264  
                 
TOTAL ASSETS   $ 484,571,960     $ 495,249,840  
                 
CURRENT LIABILITIES                
Accounts payable   $ 29,846,891     $ 34,257,935  
Other payables and accrued expenses     4,648,178       7,218,395  
Notes payable     92,079       92,445  
Income tax payable     1,355,094       1,313,754  
Advance receipts     38,078,159       38,229,242  
Amount due to related party     500,000       500,000  
Other current liabilities     3,742,741       2,185,654  
TOTAL CURRENT LIABILITIES     78,263,142       83,797,425  
                 
NON-CURRENT LIABILITIES                
Deferred taxes liability     3,483,171       3,483,171  
Contingent consideration liability     3,386,000       3,743,000  
Other long-term liabilities     457,764       459,580  
TOTAL NON-CURRENT LIABILITIES     7,326,935       7,685,751  
                 
TOTAL LIABILITIES     85,590,077       91,483,176  
                 
STOCKHOLDER’S EQUITY                
Common stock, $0.001 par value; 100,000,000 shares authorized; 77,308,499 and
77,298,499 shares issued and 75,387,555 and 75,377,555 outstanding at March
31,2021 and December 31,2020, respectively
    75,387       75,377  
Additional paid-in capital     442,343,280       439,549,338  
Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at March
31,2021 and December 31,2020, respectively)
    (33,482,620 )     (27,079,900 )
Accumulated other comprehensive loss     (9,954,164 )     (8,778,151 )
TOTAL STOCKHOLDERS’ EQUITY     398,981,883       403,766,664  
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 484,571,960     $ 495,249,840  
                 


KANDI TECHNOLOGIES GROUP, INC.

AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)

    Three Months Ended  
    March 31,
2021
    March 31,
2020
 
             
REVENUES FROM UNRELATED PARTIES, NET   $ 15,976,170     $ 6,372,424  
REVENUES FROM THE AFFILIATE COMPANY AND RELATED PARTIES, NET     1,584        
                 
REVENUES, NET     15,977,754       6,372,424  
                 
COST OF GOODS SOLD     (11,623,403 )     (5,205,165 )
                 
GROSS PROFIT     4,354,351       1,167,259  
                 
OPERATING EXPENSES:                
Research and development     (21,624,597 )     (640,240 )
Selling and marketing     (1,146,866 )     (878,306 )
General and administrative     (4,430,123 )     (3,066,735 )
TOTAL OPERATING EXPENSES     (27,201,586 )     (4,585,281 )
                 
LOSS FROM OPERATIONS     (22,847,235 )     (3,418,022 )
                 
OTHER INCOME (EXPENSE):                
Interest income     528,592       338,944  
Interest expense     (126,348 )     (982,934 )
Change in fair value of contingent consideration     357,000       3,792,000  
Government grants     234,793       11,099  
Gain from sale of equity in the Affiliate Company     17,700,260        
Share of loss after tax of the Affiliate Company     (2,579,497 )     (1,102,770 )
Other income, net     498,901       19,650  
TOTAL OTHER INCOME, NET     16,613,701       2,075,989  
                 
LOSS BEFORE INCOME TAXES     (6,233,534 )     (1,342,033 )
                 
INCOME TAX EXPENSE     (169,186 )     (232,613 )
                 
NET LOSS     (6,402,720 )     (1,574,646 )
                 
OTHER COMPREHENSIVE INCOME (LOSS)                
Foreign currency translation adjustment     (1,176,013 )     (3,523,065 )
                 
COMPREHENSIVE LOSS   $ (7,578,733 )   $ (5,097,711 )
                 
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC AND DILUTED     75,383,777       52,361,077  
                 
NET LOSS PER SHARE, BASIC AND DILUTED   $ (0.08 )   $ (0.03 )
                 


KANDI TECHNOLOGIES GROUP, INC.

AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(UNAUDITED)

    Number of
Outstanding
Shares
    Common
Stock
    Treasury
Stock
    Additional
Paid-in
Capital
    Accumulated
Deficit
    Accumulated
Other
Comprehensive
Loss
    Total  
Balance, December 31, 2019     52,839,441     $ 52,839     $ (2,477,965 )   $ 259,691,370     $ (16,685,736 )   $ (22,723,581 )   $ 217,856,927  
Stock issuance and award     10,000       10             22,290                   22,300  
Net loss                             (1,574,646 )           (1,574,646 )
Foreign currency translation                                   (3,523,065 )     (3,523,065 )
                                                         
Balance, March 31, 2020     52,849,441     $ 52,849     $ (2,477,965 )   $ 259,713,660     $ (18,260,382 )   $ (26,246,646 )   $ 212,781,516  
    Number of
Outstanding
Shares
    Common
Stock
    Treasury
Stock
    Additional
Paid-in
Capital
    Accumulated
Earning
(Deficit)
    Accumulated
Other
Comprehensive
Income
    Total  
Balance, December 31, 2020     75,377,555     $ 75,377     $       –     $ 439,549,338     $ (27,079,900 )   $ (8,778,151 )   $ 403,766,664  
Stock issuance and award     10,000       10             22,290                   22,300  
Net loss                             (6,402,720 )           (6,402,720 )
Foreign currency translation                                   (1,176,013 )     (1,176,013 )
Reversal of reduction in the Affiliate Company’s equity (net off tax effect of $491,400)                       2,771,652                   2,771,652  
                                                         
Balance, March 31, 2021     75,387,555     $ 75,387     $     $ 442,343,280     $ (33,482,620 )   $ (9,954,164 )   $ 398,981,883  
                                                         


KANDI TECHNOLOGIES GROUP, INC.

AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

    Three Months Ended  
    March 31,
2021
    March 31,
2020
 
             
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net loss   $ (6,402,720 )   $ (1,574,646 )
Adjustments to reconcile net income to net cash provided by operating activities                
Depreciation and amortization     2,212,965       2,037,045  
Impairments           24,316  
Share of loss after tax of the Affiliate Company     2,579,497       1,102,770  
Gain from equity sale in the Affiliate Company     (17,700,260 )      
Change in fair value of contingent consideration     (357,000 )     (3,792,000 )
Stock based compensation expense     22,925       22,925  
                 
Changes in operating assets and liabilities:                
                 
Accounts receivable     8,916,548       5,540,503  
Inventories     (864,177 )     (2,955,178 )
Other receivables and other assets     (13,058,262 )     (8,734,544 )
Advances to supplier and prepayments and prepaid expenses     18,807,547       (8,311,506 )
Amount due from the Affiliate Company           4,187,038  
                 
Increase (Decrease) In:                
Accounts payable     (340,133 )     (2,575,446 )
Other payables and accrued liabilities     107,011       (781,409 )
Notes payable           (10,745,294 )
Income tax payable     58,779       29,357  
Net cash used in operating activities   $ (6,017,280 )   $ (26,526,069 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES:                
Purchases of property, plant and equipment, net     (5,866,207 )     (1,355 )
Payment for construction in progress     (4,339,770 )      
Repayments of loan to third party     13,113,237        
Certificate of deposit     (15,427,337 )      
Cash received from sales of equity in the Affiliate Company     23,758,099       11,461,646  
Long Term Investment     (107,991 )      
Net cash provided by investing activities   $ 11,130,031     $ 11,460,291  
                 
CASH FLOWS FROM FINANCING ACTIVITIES:                
Proceeds from short-term loans           8,452,964  
Net cash provided by financing activities   $     $ 8,452,964  
                 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH
  $ 5,112,751     $ (6,612,814 )
Effect of exchange rate changes   $ (438,313 )   $ (145,928 )
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT
BEGINNING OF YEAR
  $ 142,520,635     $ 16,512,635  
                 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD   $ 147,195,073     $ 9,753,893  
-CASH AND CASH EQUIVALENTS AT END OF PERIOD     146,714,469       3,719,142  
-RESTRICTED CASH AT END OF PERIOD     480,604       6,034,751  
                 
SUPPLEMENTARY CASH FLOW INFORMATION                
Income taxes paid   $ 110,407       203,256  
Interest paid   $       345,170  
                 
SUPPLEMENTAL NON-CASH DISCLOSURES:                
Reversal of decrease in investment in the Affiliate Company due to change in its
equity (net off tax effect of $491,400)
  $ 2,807,696        
Increase of other receivable for equity transfer payment of the Affiliate Company   $ 23,758,099        
                 


Go to Source