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 | $ | – | ||||
Bay Street News