Nine-Month Revenue of Nearly $90M, with Off-Road Vehicles as the Core Revenue Driver
Strong Financial Position with $260M in Liquidity
New Leadership to Drive Technology Innovation and Expand Growth, Boosting Market Edge and Launching a Fresh Chapter for the Company
JINHUA, China, Nov. 18, 2024 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the “Company”, “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the third quarter of 2024.
Third Quarter and Nine Months 2024 Financial Highlights
Q3 revenues decreased to $29.9 million, from $36.4 million in the same period of 2023.
Nine-month revenues of $89.8 million slipped 5.7% year-over-year.
Off-road vehicles and associated parts in Q3 were the primary source of revenue, decreasing by 9.2% y/y to $27.5 million, compared to $30.2 million in the same period of 2023.
Nine-month revenue from off-road vehicles and associated parts decreased by 1.0% y/y to $81.5 million, compared to $82.3 million in the same period of 2023.
Nine-month net loss was $1.8 million, or $0.02 loss per fully diluted share, compared to a net income of $6.3 million, or $0.08 income per fully diluted share for the same period of 2023.
Solid financial standing with $260 million in cash and cash equivalents, restricted cash, short term investment, and certificate of deposit as of September 30, 2024.
Feng Chen, Kandi’s newly appointed CEO, stated, “Revenue temporarily declined this year due to changes in the sales model for our fully-electric off-road vehicles. In response, the new management team has developed a comprehensive 2025-2029 growth plan, tailored to our current position and approved by the Board. With disciplined execution of our strategic and operational plans, we are confident that each business segment is positioned to reach new height.”
“We see significant growth potential in the all-electric off-road vehicle segment. Over the past few years, we’ve built a solid foundation in technology, product offerings, and market presence. Our golf carts and other models are highly competitive, well-regarded by consumers, and supported by strong partnerships with key clients like Lowe’s. Notably, the recent launch of our NFL-branded golf carts, featuring all 32 NFL teams and available exclusively at Lowe’s, has further strengthened the Kandi brand. Moving forward, we will build on our advantages in technological innovation, product enhancement, and distribution to grow our market share.”
“In today’s complex global economic environment, we are mindful of concerns about trade tensions. To address these challenges, our 2025-2029 growth plan includes targeted measures. We intend to set up U.S.-based production lines for golf carts, utility vehicles, and lithium batteries to better serve the North American market. These local facilities will bring our products closer to key markets, significantly enhancing delivery times and after-sales support. At the same time, we will continue expanding our global presence, targeting new markets in Southeast Asia, the Middle East, Europe, and beyond with a competitive product portfolio.”
“Even as we navigate shifts in international markets, we are implementing a strategy for growth in China. Our initial focus will be on expanding into smart mobility, a high-growth sector gaining traction with Chinese consumers, where we aim to establish a strong position. Additionally, we will leverage our expertise in manufacturing battery swapping equipment and our experience in battery swapping operations to support major providers in China with advanced technology and services, striving to position Kandi as a leading supplier and operator in China’s battery-swapping market to drive further growth for the company.”
Share Repurchase
As of September 30, 2024, the Company had repurchased a total of 1,480,786 common shares at an average price of $2.49 per share under the repurchase plan, including a total of 58,022 common shares at an average price of $2.18 per share repurchased in the third quarter of 2024.
Q3 2024 Key Financial Results
Net Revenues and Gross Profit (in USD millions)
Q3 2024
Q3 2023
Y-o-Y%
Net Revenues
$29.9
$36.4
-17.8%
Gross Profit
$9.4
$10.9
-14.2%
Gross Margin%
31.3%
30.0%
-
Total revenues in the third quarter of 2024 were $29.9 million, compared to $36.4 million in the same period of 2023, representing a decrease of 17.8%, mainly due to a decrease in sales of off-road vehicles, EV parts and lithium-ion cells compared to the prior period.
Cost of goods sold in the third quarter of 2024 was $20.6 million, compared to $25.5 million in the same period of 2023, representing a decrease of 19.4%. The decrease was primarily due to the corresponding decrease in sales.
Gross profit in the third quarter of 2024 was $9.4 million, compared to $10.9 million in the same period of 2023, representing a decrease of 14.2%. The overall gross margin for the third quarter was 31.3%, up slightly from 30.0% in the same period of 2023, showing a modest year-over-year improvement in gross margin between the two periods.
Operating Loss (in USD millions)
Q3 2024
Q3 2023
Y-o-Y%
Operating Expenses
($16.1
)
($14.5
)
11.0%
Loss from Operations
($6.7
)
($3.6
)
87.6%
Operating Margin%
-22.5%
-9.8%
-
Research and development expenses totaled $2.3 million for the third quarter of 2024, an increase of 148.7% compared to $0.9 million for the same period in 2023. The increase was mainly due to a research and development project for battery products conducted in the third quarter.
Selling and distribution expenses totaled $3.1 million for the third quarter of 2024, a decrease of 26.0% compared to $4.2 million for the same period in 2023. The decrease was mainly due to lower shipping and storage expenses incurred in the third quarter.
General and administrative expenses totaled $10.7 million for the third quarter of 2024, an increase of 13.7% compared to $9.5 million for the same period in 2023. The increase was primarily due to higher salaries and professional service fees incurred in the third quarter.
Net Income (loss) (in USD millions)
Q3 2024
Q3 2023
Y-o-Y%
Net (Loss) Income
($4.2
)
$1.3
NM
Net (Loss) Income per Share, Basic and Diluted
($0.05
)
$0.02
-
Net (Loss) Income attributable to Kandi
($4.1
)
$0.9
NM
Net (Loss) Income attributable to Kandi per Share, Basic and Diluted
($0.05
)
$0.01
-
Net loss was $4.2 million for the third quarter of 2024, compared to net income of $1.3 million for the same period in 2023. The shift was mainly driven by a decrease in gross profit and other income, along with increased operating expenses compared to the prior period.
Balance Sheet (in USD millions)
Working capital was $274.9 million as of September 30, 2024.
Third Quarter 2024 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 Monday, November 18, 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 Kandi Electric Vehicles (Hainan) 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.co
KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(All amounts in thousands)
September 30, 2024
December 31, 2023
(Unaudited)
CURRENT ASSETS
Cash and cash equivalents
$
53,526
$
33,757
Restricted cash
165,391
59,873
Short term investment
713
-
Certificate of deposit
39,921
33,947
Accounts receivable
35,215
18,952
Inventories
85,797
61,551
Notes receivable
64
124,473
Other receivables
10,614
6,477
Prepayments and prepaid expense
4,848
1,909
Advances to suppliers
593
2,609
TOTAL CURRENT ASSETS
396,682
343,548
NON-CURRENT ASSETS
Property, plant and equipment, net
92,726
98,804
Intangible assets, net
5,141
6,396
Land use rights, net
2,713
2,754
Deferred tax assets
849
815
Goodwill
33,358
33,147
Other long-term assets
10,740
9,993
TOTAL NON-CURRENT ASSETS
145,527
151,909
TOTAL ASSETS
$
542,209
$
495,457
CURRENT LIABILITIES
Accounts payable
$
31,044
$
28,745
Other payables and accrued expenses
6,152
7,253
Short-term loans
24,521
9,072
Notes payable
51,531
24,071
Income tax payable
2,568
2,130
Other current liabilities
5,949
5,402
TOTAL CURRENT LIABILITIES
121,765
76,673
NON-CURRENT LIABILITIES
Long-term loans
7,855
8,389
Deferred taxes liability
853
964
Contingent consideration liability
1,648
2,693
Other long-term liabilities
536
227
TOTAL NON-CURRENT LIABILITIES
10,892
12,273
TOTAL LIABILITIES
132,657
88,946
STOCKHOLDER'S EQUITY
Kandi technologies group, inc. stockholders' equity
407,172
404,126
Non-controlling interests
2,380
2,385
TOTAL STOCKHOLDERS' EQUITY
409,552
406,511
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
542,209
$
495,457
KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
(All amounts in thousands, except for share and per share data)
Three Months Ended
September 30, 2024
September 30, 2023
REVENUES, NET
$
29,945
$
36,426
COST OF GOODS SOLD
(20,571
)
(25,507
)
GROSS PROFIT
9,374
10,919
OPERATING EXPENSE:
Research and development
(2,283
)
(918
)
Selling and marketing
(3,071
)
(4,152
)
General and administrative
(10,750
)
(9,458
)
Impairment of goodwill
-
8
Impairment of long-lived assets
-
14
TOTAL OPERATING EXPENSE
(16,104
)
(14,506
)
LOSS FROM OPERATIONS
(6,730
)
(3,587
)
OTHER INCOME (EXPENSE):
Interest income
2,948
1,927
Interest expense
(653
)
(355
)
Change in fair value of contingent consideration
109
-
Government grants
95
668
Other income, net
649
2,611
TOTAL OTHER INCOME , NET
3,148
4,851
(LOSS) INCOME BEFORE INCOME TAXES
(3,582
)
1,264
INCOME TAX (EXPENSE) BENEFIT
(593
)
12
NET (LOSS) INCOME
(4,175
)
1,276
LESS: NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS
(64
)
408
NET (LOSS) INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS
(4,111
)
868
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment
13,082
(2,102
)
COMPREHENSIVE INCOME (LOSS)
$
8,907
$
(826
)
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC
86,068,123
79,174,343
WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED
86,068,123
81,234,002
NET (LOSS) INCOME PER SHARE, BASIC
$
(0.05
)
$
0.02
NET (LOSS) INCOME PER SHARE, DILUTED
$
(0.05
)
$
0.02
NET (LOSS) INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE, BASIC
$
(0.05
)
$
0.01
NET (LOSS) INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE, DILUTED
$
(0.05
)
$
0.01
Nine Months Ended
September 30, 2024
September 30, 2023
REVENUES, NET
$
89,770
$
95,242
COST OF GOODS SOLD
(61,429
)
(62,559
)
GROSS PROFIT
28,341
32,683
OPERATING EXPENSE:
Research and development
(3,969
)
(2,671
)
Selling and marketing
(10,094
)
(8,760
)
General and administrative
(25,362
)
(25,856
)
Impairment of goodwill
-
(500
)
Impairment of long-lived assets
-
(948
)
TOTAL OPERATING EXPENSE
(39,425
)
(38,735
)
LOSS FROM OPERATIONS
(11,084
)
(6,052
)
OTHER INCOME (EXPENSE):
Interest income
6,581
5,982
Interest expense
(1,618
)
(723
)
Change in fair value of contingent consideration
1,045
1,803
Government grants
1,146
1,478
Other income, net
3,174
3,685
TOTAL OTHER INCOME , NET
10,328
12,225
(LOSS) INCOME BEFORE INCOME TAXES
(756
)
6,173
INCOME TAX (EXPENSE) BENEFIT
(1,041
)
86
NET (LOSS) INCOME
(1,797
)
6,259
LESS: NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS
(1
)
1,691
NET (LOSS) INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS
(1,796
)
4,568
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment
3,260
(19,799
)
COMPREHENSIVE INCOME (LOSS)
$
1,463
$
(13,540
)
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC
86,463,327
75,931,247
WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED
86,463,327
77,645,533
NET (LOSS) INCOME PER SHARE, BASIC
$
(0.02
)
$
0.08
NET (LOSS) INCOME PER SHARE, DILUTED
$
(0.02
)
$
0.08
NET (LOSS) INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE, BASIC
$
(0.02
)
$
0.06
NET (LOSS) INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE, DILUTED
