-- Revenue ~$17 million --
Working Capital of ~$289 million, cash1 balance $211 million --
-- Sales into e-Scooter-related markets surge nearly 600% --

JINHUA, China, Nov. 09, 2021 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced financial results for the third quarter of 2021.

Third Quarter Highlights

  • Total revenues decreased by 10.3% to $16.8 million, from $18.7 million in the same period of 2020.

  • EV parts sales were $3.2 million, compared to $8.4 million in the same period of 2020.

  • Off-road vehicles sales were $6.8 million, compared to $8.9 million in the same period of 2020.

  • Electric Scooters, Electric Self-Balancing Scooters and associated parts sales were $6.3 million, compared to $0.9 million in the same period of 2020.

  • Battery exchange equipment and battery exchange service sales were $0.2 million. This new business had no revenue in the same period of 2020.

  • Gross margin was 16.4%, compared to 20.9% for the same period of 2020.

  • Net loss was $7.9 million, or ($0.10) per fully diluted share due to decreased sales and increased investment in R&D, compared to net loss of $1.5 million, or ($0.03) per fully diluted share for the same period of 2020.

  • As of September 30, 2021, working capital was $289.4 million. Cash, cash equivalents, restricted cash, and a certificate of deposit totaled $211.0 million.

________________________

1 Includes cash, cash equivalents, restricted cash, and certificate of deposit.

Hu Xiaoming, Chairman and CEO of Kandi commented: “Sales are surging in the segment of e-Scooters, electric self-balancing scooters and associated parts sales. With explosive growth again this quarter, we are increasingly confident that our traction in this market can continue. Our strategic entry into this market last year represents a great success in identifying and developing intelligent transportation products to counteract the impact to EV market demand caused by the COVID-19 outbreak in 2020. We expect the EV-related business recovery to take time. Our restructuring of this business segment resulted in lower sales of EV products and parts.”

Hu continued, “Compared to the second quarter, our sales mix had a couple of notable shifts. Within EV parts, battery pack sales were impacted by supply chain constraints hitting the whole industry. Meanwhile, off-road vehicles sales grew more rapidly, indicating burgeoning customer demand for off-road and ATV recreation. We are excited about the new products we are introducing for this segment.”

Turning to the balance sheet, Hu commented, “During the quarter we received the final payment related to the sale of our 22% equity position in Fengsheng. Our liquidity has never been better. We are well-capitalized to pursue the most promising market opportunities: those that show high demand, are not oversupplied, and play to our competitive strengths. After we finish the ‘reset’ of our electric vehicle business, we can again achieve substantial growth.”

Q3 2021 Financial Results

Net Revenues and Gross Profit (in USD millions)

　3Q213Q20Y/Y%
Net Revenue$16.8$18.7-10.3%
Gross Profit$2.7$3.9-29.7%
Gross Margin 16.4% 20.9%-

Net revenues of $16.8 million decreased 10.3% from the third quarter of 2020. The decrease in revenue was primarily due to lower sales of EV parts. Gross margin was 16.4%, lower than the 20.9% recorded in the same period of 2020, primarily attributable to a lower proportion of revenue generated from off-road vehicles, which offers higher gross margin.

Operating Income/Loss (in USD millions)

　3Q213Q20Y/Y%
Operating Expenses($11.8)($6.3)87.2%
Loss from Operations($9.0)($2.4)279.3%
Operating Margin -53.7% -12.7%-

Operating expenses were $11.8 million, compared with expenses of $6.3 million in the third quarter of 2020. The greater expense was primarily attributable to increased R&D spending for new product development.

Net Loss (in USD millions)

　3Q213Q20Y/Y%
Net Loss($7.9)($1.5)439.6%
Net Loss per Share, Basic and Diluted($0.10)($0.03)-

Net loss was $7.9 million, compared with a net loss of $1.5 million in the same period of 2020. The greater loss was primarily attributable to higher R&D spending and decreased revenue generated by certain EV parts.

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 (9:00 P.M. Beijing Time) on Tuesday, November 9, 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:

  • Toll-free dial-in number: +1-844-825-9789
  • International dial-in number: + 1-412-317-5180
  • Webcast and replay: https://viavid.webcasts.com/starthere.jsp?ei=1511452&tp_key=9297e2ff2a

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.

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
(UNAUDITED)

  September 30,
2021		  December 31,
2020		 
       
Current assets        
Cash and cash equivalents $132,866,957  $142,078,190 
Restricted cash  23,903,418   442,445 
Certificate of deposit  54,207,258   - 
Accounts receivable (net of allowance for doubtful accounts of $111,481 and $110,269 as of September 30, 2021 and December 31, 2020, respectively)  43,998,755   38,547,137 
Inventories  27,346,751   19,697,383 
Notes receivable  106,514   31,404,630 
Other receivables  23,754,321   1,875,245 
Prepayments and prepaid expense  19,371,962   13,708,149 
Advances to suppliers  12,506,543   36,733,182 
Amount due from the Affiliate Company  -   21,742,226 
Amount due from related party  -   886,989 
TOTAL CURRENT ASSETS  338,062,479   307,115,576 
         
NON-CURRENT ASSETS        
Property, plant and equipment, net  90,461,708   65,402,680 
Intangible assets, net  2,770,152   3,232,753 
Land use rights, net  3,224,185   3,257,760 
Construction in progress  8,306,311   16,317,662 
Deferred taxes assets  7,852,209   8,964,946 
Long term investment  154,878   45,958 
Investment in the Affiliate Company  -   28,892,638 
Goodwill  29,963,965   29,712,383 
Other long term assets  11,946,463   32,307,484 
TOTAL NON-CURRENT ASSETS  154,679,871   188,134,264 
         
TOTAL ASSETS $492,742,350  $495,249,840 
         
CURRENT LIABILITIES        
Accounts payable $26,177,367  $34,257,935 
Other payables and accrued expenses  3,000,136   7,218,395 
Short-term loans  2,630,000   - 
Notes payable  371,707   92,445 
Income tax payable  11,660,654   1,313,754 
Advance receipts  601,644   38,229,242 
Amount due to related party  500,000   500,000 
Other current liabilities  3,682,386   2,185,654 
TOTAL CURRENT LIABILITIES  48,623,894   83,797,425 
         
NON-CURRENT LIABILITIES        
Deferred taxes liability  602,435   3,483,171 
Contingent consideration liability  -   3,743,000 
Other long-term liabilities  464,634   459,580 
TOTAL NON-CURRENT LIABILITIES  1,067,069   7,685,751 
TOTAL LIABILITIES  49,690,963   91,483,176 
         
STOCKHOLDER’S EQUITY        
Common stock, $0.001 par value; 100,000,000 shares authorized; 77,462,516 and 77,298,499 shares issued and 77,152,972 and 75,377,555 outstanding at September 30,2021 and December 31,2020, respectively  77,153   75,377 
Additional paid-in capital  448,591,602   439,549,338 
Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at September 30,2021 and December 31,2020, respectively)  (421,965)  (27,079,900)
Accumulated other comprehensive loss  (5,195,403)  (8,778,151)
TOTAL STOCKHOLDERS’ EQUITY  443,051,387   403,766,664 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $492,742,350  $495,249,840 


KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)

  Three Months Ended  Nine Months Ended 
  September 30,
2021		  September 30,
2020		  September 30,
2021		  September 30,
2020		 
             
REVENUES FROM UNRELATED PARTIES, NET $16,795,712  $18,717,212  $62,647,714  $44,525,756 
REVENUES FROM THE AFFILIATE COMPANY AND RELATED PARTIES, NET  -   6   1,587   962 
                 
REVENUES, NET  16,795,712   18,717,218   62,649,301   44,526,718 
                 
COST OF GOODS SOLD  (14,046,041)  (14,806,322)  (49,447,497)  (35,911,785)
                 
GROSS PROFIT  2,749,671   3,910,896   13,201,804   8,614,933 
                 
OPERATING INCOME (EXPENSE):                
Research and development  (6,747,934)  (987,285)  (31,937,436)  (2,777,426)
Selling and marketing  (1,290,544)  (2,165,383)  (3,494,927)  (3,807,355)
General and administrative  (3,733,230)  (3,212,209)  (13,522,925)  (10,186,135)
Gain on disposal of long-lived assets  2,238   76,159   48,255,905   13,983,733 
TOTAL OPERATING EXPENSE  (11,769,470)  (6,288,718)  (699,383)  (2,787,183)
                 
(LOSS) INCOME FROM OPERATIONS  (9,019,799)  (2,377,822)  12,502,421   5,827,750 
                 
OTHER INCOME (EXPENSE):                
Interest income  1,247,544   558,059   2,750,241   1,118,795 
Interest expense  (63,368)  (788,589)  (267,785)  (2,894,579)
Change in fair value of contingent consideration  -   (1,069,000)  -   1,794,000 
Government grants  220,967   13,431   570,162   111,329 
Gain from sale of equity in the Affiliate Company  822   -   17,734,733   - 
Share of loss after tax of the Affiliate Company  (119)  (1,550,568)  (2,584,520)  (5,631,867)
Other income, net  442,102   988,287   4,768,092   2,051,272 
TOTAL OTHER INCOME (EXPENSE), NET  1,847,948   (1,848,380)  22,970,923   (3,451,050)
                 
(LOSS) INCOME BEFORE INCOME TAXES  (7,171,851)  (4,226,202)  35,473,344   2,376,700 
                 
INCOME TAX (EXPENSE) BENEFIT  (696,968)  2,767,939   (8,815,409)  (1,354,563)
                 
NET (LOSS) INCOME  (7,868,819)  (1,458,263)  26,657,935   1,022,137 
                 
OTHER COMPREHENSIVE INCOME (LOSS)                
Foreign currency translation adjustment  (116,054)  8,216,974   3,582,748   5,171,643 
                 
COMPREHENSIVE (LOSS) INCOME $(7,984,873) $6,758,711  $30,240,683  $6,193,780 
                 
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC AND DILUTED  76,394,573   54,112,981   75,766,749   53,282,066 
                 
NET (LOSS) INCOME PER SHARE, BASIC AND DILUTED $(0.10) $(0.03) $0.35  $0.02 


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 
Stock issuance and award  1,502,717   1,503       3,164,925           3,166,428 
Net income                  4,055,043       4,055,043 
Foreign currency translation                      477,734   477,734 
                             
Balance, June 30, 2020  54,352,158  $54,352  $(2,477,965) $262,878,585  $(14,205,339) $(25,768,912) $220,480,721 
Stock issuance and award  258,600   259   -   870,837   -   -   871,096 
Net loss  -   -   -   -   (1,458,263)  -   (1,458,263)
Foreign currency translation  -   -   -   -   -   8,216,974   8,216,974 
Reduction in the Affiliate Company’s equity  -   -   -   (3,144,213)  -   -   (3,144,213)
Balance, September 30, 2020  54,610,758  $54,611  $(2,477,965) $260,605,209  $(15,663,602) $(17,551,938) $224,966,315 


   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 
Stock issuance and award  238,600   239   -   1,374,098   -   -   1,374,337 
Net income  -   -   -   -   40,929,474   -   40,929,474 
Foreign currency translation  -   -   -   -   -   4,874,815   4,874,815 
                             
Balance, June 30, 2021  75,626,155  $75,626  $-  $443,717,378  $7,446,854  $(5,079,349) $446,160,509 
Stock issuance and award  1,526,817   1,527   -   4,874,224   -   -   4,875,751 
Net loss  -   -   -   -   (7,868,819)  -   (7,868,819)
Foreign currency translation  -   -   -   -   -   (116,054)  (116,054)
                             
Balance, September 30, 2021  77,152,972  $77,153  $-  $448,591,602  $(421,965) $(5,195,403) $443,051,387 


KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) 

  Nine Months Ended 
  September 30,
2021		  September 30,
2020		 
       
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income $26,657,935  $1,022,137 
Adjustments to reconcile net income to net cash provided by operating activities        
Depreciation and amortization  6,893,192   6,078,070 
(Reversal) provision of allowance for doubtful accounts  -   (150,756)
Deferred taxes  (11,970)  1,256,167 
Share of loss after tax of the Affiliate Company  2,584,520   5,631,867 
Gain from equity sale in the Affiliate Company  (17,734,733)  - 
Gain on disposal of long-live assets  (48,255,905)  (13,983,733)
Change in fair value of contingent consideration  -   (1,794,000)
Stock based compensation expense  1,452,381   870,471 
         
Changes in operating assets and liabilities:        
         
Accounts receivable  4,289,150   18,165,084 
Inventories  (7,443,414)  (1,830,827)
Other receivables and other assets  (17,537,034)  (5,226,968)
Advances to supplier and prepayments and prepaid expenses  18,776,708   (84,089)
Amount due from the Affiliate Company  -   4,178,477 
         
Increase (Decrease) In:        
Accounts payable  (4,116,153)  (15,642,931)
Other payables and accrued liabilities  7,052,572   2,675,156 
Notes payable  (93,278)  (13,725,855)
Income tax payable  8,053,977   (804,238)
Net cash used in operating activities $(19,432,052) $(13,365,968)
         
CASH FLOWS FROM INVESTING ACTIVITIES:        
Purchases of property, plant and equipment, net  (10,948,968)  (383,568)
Prepayments for acquisition of Jiangxi Huiyi  (3,864,346)  - 
Payment for construction in progress  (4,048,889)  (1,604,427)
Proceeds from disposal of long-lived assets  23,235,758   51,872,829 
Loan to third party  31,687,637   (45,958,247)
Certificate of deposit  (54,100,844)  - 
Cash received from sales of equity in the Affiliate Company  47,608,743   42,321,385 
Long Term Investment  (108,202)  - 
Advance receipts of equity transfer  600,463   - 
Net cash provided by investing activities $30,061,352  $46,247,972 
         
CASH FLOWS FROM FINANCING ACTIVITIES:        
Proceeds from short-term loans  2,630,000   24,163,223 
Repayments of short-term loans  -   (50,042,178)
Repayments of long-term loans  -   (285,955)
Proceeds from long-term loans  -   394,116 
Net cash provided by (used in) financing activities $2,630,000  $(25,770,794)
         
NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH $13,259,300  $7,111,210 
Effect of exchange rate changes $990,440  $535,314 
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 $156,770,375  $24,159,159 
-CASH AND CASH EQUIVALENTS AT END OF PERIOD  132,866,957   23,909,159 
-RESTRICTED CASH AT END OF PERIOD  23,903,418   250,000 
         
SUPPLEMENTARY CASH FLOW INFORMATION        
Income taxes paid $688,160   901,021 
Interest paid $17,536   644,724 
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) $2,813,968   - 
Decrease in investment in the Affiliate Company due to change in its equity  -   3,057,540 
Common stock issued for settlement of payables related to acquisitions (see Note 21) $4,853,451   3,166,427 

 


Source: Kandi Technologies Group, Inc.

2021 GlobeNewswire, Inc., source Press Releases