Kandi Technologies Reports Second Quarter 2020 Financial Results
Kandi Technologies Group, Inc. (KNDI) reported its second quarter results for 2020, revealing total revenues of $19.4 million, a 19.5% decline from $24.1 million in 2019. Sales of off-road vehicles rose 27.3% to $6.6 million, while electric vehicle (EV) parts sales fell by 34.1% to $12.5 million. Gross margin improved to 18.2% from 17.4% year-over-year. Net income surged to $4.1 million compared to a net loss of $7.3 million in Q2 2019. The company is preparing to launch its online car-hailing business in Hainan and has commenced operations of battery swapping stations.
- Net income increased 155.4% to $4.1 million.
- Off-road vehicle sales increased 27.3% to $6.6 million.
- Gross margin improved to 18.2% from 17.4%.
- Total revenues decreased by 19.5% from $24.1 million in Q2 2019.
- Electric vehicle parts sales declined by 34.1% to $12.5 million.
• Off-road vehicles sales increased
• Gross margin of
• Net income increased
JINHUA, China, Aug. 10, 2020 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the second quarter of 2020.
Second Quarter Highlights
- Total revenues were
$19.4 million for the second quarter of 2020, a decrease of19.5% from total revenues of$24.1 million for the same period in 2019.
- Electric Vehicle (“EV”) parts sales decreased by
34.1% , to$12.5 million for the second quarter of 2020, compared with EV parts sales of$19.0 million for the same period in 2019.
- Revenues from sales of off-road vehicles increased by
27.3% , to$6.6 million for the second quarter of 2020, compared with revenues from sales of off-road vehicles of$5.2 million for the same period in 2019.
- Gross margin for the second quarter of 2020 was
18.2% , compared to17.4% for the same period of 2019.
- Net income for the second quarter of 2020 was
$4.1 million , or$0.08 earnings per fully diluted share, compared with net loss of$7.3 million , or$0.14 loss per fully diluted share for the same period in 2019.
- Working capital was
$75.6 million as of June 30, 2020. Cash, cash equivalents and restricted cash totaled$6.7 million as of June 30, 2020.
Mr. Hu Xiaoming, Chairman and Chief Executive Officer of Kandi, commented, “Our second quarter results were satisfactory. After the pandemic in China was effectively contained, Kandi fully resumed production and actively pushed the business forward. The COVID-19 situation significantly decreased consumer demand, yet we contained the revenue decline, improved gross margin, and achieved
Mr. Hu discussed the U.S. opportunity: “While maintaining growth of off-road vehicles, our American wholly-owned subsidiary has also prepared to launch sales of pure EVs in the United States. A live virtual event will occur on August 18 to officially kick-off pre-sales, which will be a key milestone in the Company’s history. As a technology innovator, Kandi is committed to provide high quality products with great performance and affordable price.”
“As a pioneer in the electric vehicle industry and inventor of the ‘vehicle/battery separation’ swap model, Kandi is well-positioned to benefit from growing demand for EVs. The market potential of online car hailing in China is huge, and with government support for the battery swapping model, we are confident that Kandi will gain market share in China’s EV industry in the near future.” Mr. Hu concluded.
Net Revenues and Gross Profit
| 2Q20 | 2Q19 | Y-o-Y | % | |||||
| Net Revenues (US$million) | $ | 19.4 | $ | 24.1 | -19.5 | % | ||
| Gross Profit (US$million) | $ | 3.5 | $ | 4.2 | -15.8 | % | ||
| Gross Margin | 18.2 | % | 17.4 | % | - | |||
Net revenues for the second quarter of 2020 decreased by
Income (Loss) from Operations
| 2Q20 | 2Q19 | Y-o-Y | % | |||||
| Total Operating Income (Expenses) (US$million) | $ | 8.1 | ($ | 7.2 | ) | -213.0 | % | |
| Income (Loss) from Operations (US$million) | $ | 11.6 | ($ | 3.0 | ) | -493.5 | % | |
| Operating Margin | 59.8 | % | -12.2 | % | - | |||
Total operating income in the second quarter of 2020 were
Net Income (Loss)
| 2Q20 | 2Q19 | Y-o-Y | % | |||||
| Net Income (Loss) (US$million) | $ | 4.1 | ($ | 7.3 | ) | -155.4 | % | |
| Earnings (loss) per Weighted Average Common Share | $ | 0.08 | ($ | 0.14 | ) | - | ||
| Earnings (loss) per Weighted Average Diluted Share | $ | 0.08 | ($ | 0.14 | ) | - | ||
Net income was
Financial Condition
As of June 30, 2020, the Company had cash and cash equivalents of
As of June 30, 2020, our accounts receivable was
For the first half of 2020, cash used in operating activities was
Second Quarter 2020 Conference Call Details
The Company will conduct a conference call and live webcast to discuss its second quarter 2020 financial results at 8:00 A.M. Eastern Time (8:00 P.M. Beijing Time) on August 10, 2019. Management will deliver prepared remarks to be followed by a question and answer session.
Dial-in details for the conference call are as follows:
- Toll-free dial-in number: +1-877-407-3982
- International dial-in number: + 1-201-493-6780
- Webcast and replay: http://public.viavid.com/index.php?id=1441129
A 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 Vehicles Co., Ltd. ("Kandi Vehicles") and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States and Fengsheng Automobile Technology Group Co., Ltd (formerly known as Kandi Electric Vehicles Group Co., Ltd., the “Affiliate Company”). Kandi Vehicles has established itself as one of China's leading manufacturers of pure electric vehicle parts and off-road vehicles.
In 2013, Kandi Vehicles and Geely Group, China's leading automaker, jointly invested in the establishment of the Affiliate Company in order to develop, manufacture and sell pure electric vehicle ("EV") products. Geely Group (including its affiliate) and Kandi Vehicles currently holds
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
For More Information:
Kandi Technologies Group, Inc.
Ms. Kewa Luo
Phone: +1 (212) 551-3610
Email: IR@kandigroup.com
The Blueshirt Group
U.S.:
Mr. Gary Dvorchak
Email: gary@blueshirtgroup.com
China:
Ms. Susie Wang
Email: susie@blueshirtgroup.com
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
| June 30, 2020 | December 31, 2019 | |||||||
| (UNAUDITED) | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 3,457,498 | $ | 5,490,557 | ||||
| Restricted cash | 3,221,053 | 11,022,078 | ||||||
| Accounts receivable (net of allowance for doubtful accounts of June 30, 2020 and December 31, 2019, respectively) | 60,020,455 | 61,181,849 | ||||||
| Inventories | 28,245,267 | 27,736,566 | ||||||
| Notes receivable | - | 42,487,225 | ||||||
| Other receivables | 42,661,342 | 5,019,971 | ||||||
| Prepayments and prepaid expense | 10,407,572 | 10,615,063 | ||||||
| Amount due from the Affiliate Company, net | 20,107,347 | 31,330,763 | ||||||
| Other current assets | 13,283,400 | 688,364 | ||||||
| TOTAL CURRENT ASSETS | 181,403,934 | 195,572,436 | ||||||
| LONG-TERM ASSETS | ||||||||
| Property, plant and equipment, net | 69,907,964 | 74,407,858 | ||||||
| Intangible assets | 3,298,384 | 3,654,772 | ||||||
| Land use rights, net | 8,765,196 | 11,272,815 | ||||||
| Investment in the Affiliate Company | 42,490,448 | 47,228,614 | ||||||
| Goodwill | 27,962,871 | 28,270,400 | ||||||
| Other long term assets | 10,529,348 | 10,811,501 | ||||||
| TOTAL Long-Term Assets | 162,954,211 | 175,645,960 | ||||||
| TOTAL ASSETS | $ | 344,358,145 | $ | 371,218,396 | ||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 59,656,133 | $ | 72,093,940 | ||||
| Other payables and accrued expenses | 4,239,760 | 6,078,041 | ||||||
| Short-term loans | - | 25,980,364 | ||||||
| Notes payable | 2,971,053 | 10,765,344 | ||||||
| Income tax payable | 2,901,610 | 1,796,601 | ||||||
| Advance receipts | 18,497,676 | - | ||||||
| Long term loans - current portion | 16,128,576 | 13,779,641 | ||||||
| Other current liability | 1,421,364 | 1,379,808 | ||||||
| Total Current Liabilities | 105,816,172 | 131,873,739 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Long term loans | 11,712,415 | 14,353,792 | ||||||
| Deferred taxes liability | 3,448,922 | 1,362,786 | ||||||
| Contingent consideration liability | 2,334,000 | 5,197,000 | ||||||
| Other long-term liability | 565,915 | 574,152 | ||||||
| Total Long-Term Liabilities | 18,061,252 | 21,487,730 | ||||||
| TOTAL LIABILITIES | 123,877,424 | 153,361,469 | ||||||
| STOCKHOLDER’S EQUITY | ||||||||
| Common stock, 56,273,102 and 56,263,102 shares issued and 54,352,158 and 52,839,441 outstanding at June 30,2020 and December 31,2019, respectively | 54,352 | 52,839 | ||||||
| Less: Treasury stock (487,155 shares with average price of December 31,2019, respectively ) | (2,477,965 | ) | (2,477,965 | ) | ||||
| Additional paid-in capital | 262,878,585 | 259,691,370 | ||||||
| Accumulated deficit (the restricted portion is December 31,2019, respectively) | (14,205,339 | ) | (16,685,736 | ) | ||||
| Accumulated other comprehensive loss | (25,768,912 | ) | (22,723,581 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 220,480,721 | 217,856,927 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 344,358,145 | $ | 371,218,396 | ||||
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||||||
| REVENUES FROM UNRELATED PARTY, NET | $ | 19,436,120 | $ | 20,056,696 | $ | 25,808,544 | $ | 36,391,659 | ||||||||
| REVENUES FROM THE AFFILIATE COMPANY AND RELATED PARTY, NET | 956 | 4,089,534 | 956 | 5,823,031 | ||||||||||||
| REVENUES, NET | 19,437,076 | 24,146,230 | 25,809,500 | 42,214,690 | ||||||||||||
| COST OF GOODS SOLD | (15,900,298 | ) | (19,944,076 | ) | (21,105,463 | ) | (34,876,099 | ) | ||||||||
| GROSS PROFIT | 3,536,778 | 4,202,154 | 4,704,037 | 7,338,591 | ||||||||||||
| OPERATING INCOME (EXPENSES): | ||||||||||||||||
| Research and development | (1,149,901 | ) | (632,590 | ) | (1,790,141 | ) | (1,170,023 | ) | ||||||||
| Selling and marketing | (763,666 | ) | (899,478 | ) | (1,641,972 | ) | (1,517,481 | ) | ||||||||
| General and administrative | (3,907,191 | ) | (5,623,798 | ) | (6,973,926 | ) | (7,663,326 | ) | ||||||||
| Gain on disposal of long-live asset | 13,907,574 | - | 13,907,574 | - | ||||||||||||
| Total Operating Income (Expenses) | 8,086,816 | (7,155,866 | ) | 3,501,535 | (10,350,830 | ) | ||||||||||
| INCOME (LOSS) FROM OPERATIONS | 11,623,594 | (2,953,712 | ) | 8,205,572 | (3,012,239 | ) | ||||||||||
| OTHER INCOME (EXPENSES): | ||||||||||||||||
| Interest income | 221,792 | 97,814 | 560,736 | 350,218 | ||||||||||||
| Interest expense | (1,123,056 | ) | (429,355 | ) | (2,105,990 | ) | (868,538 | ) | ||||||||
| Change in fair value of contingent consideration | (929,000 | ) | 548,000 | 2,863,000 | 637,000 | |||||||||||
| Government grants | 86,799 | 175,319 | 97,898 | 223,043 | ||||||||||||
| Gain from equity dilution in the Affiliate Company | - | (24,131 | ) | - | 4,341,259 | |||||||||||
| Share of loss after tax of the Affiliate Company | (2,978,529 | ) | (4,500,201 | ) | (4,081,299 | ) | (14,449,359 | ) | ||||||||
| Other income (expenses), net | 1,043,335 | (174,597 | ) | 1,062,985 | 299,793 | |||||||||||
| Total other expenses, net | (3,678,659 | ) | (4,307,151 | ) | (1,602,670 | ) | (9,466,584 | ) | ||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 7,944,935 | (7,260,863 | ) | 6,602,902 | (12,478,823 | ) | ||||||||||
| INCOME TAX (EXPENSE) BENEFIT | (3,889,889 | ) | (57,295 | ) | (4,122,502 | ) | 751,193 | |||||||||
| NET INCOME (LOSS) | 4,055,046 | (7,318,158 | ) | 2,480,400 | (11,727,630 | ) | ||||||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
| Foreign currency translation | 477,734 | (4,915,589 | ) | (3,045,331 | ) | 488,439 | ||||||||||
| COMPREHENSIVE INCOME (LOSS) | $ | 4,532,780 | $ | (12,233,747 | ) | $ | (564,931 | ) | $ | (11,239,191 | ) | |||||
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 53,369,602 | 52,806,331 | 52,862,043 | 52,189,237 | ||||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 53,369,602 | 52,806,331 | 52,862,043 | 52,189,237 | ||||||||||||
| NET INCOME (LOSS) PER SHARE, BASIC | $ | 0.08 | $ | (0.14 | ) | $ | 0.05 | $ | (0.22 | ) | ||||||
| NET INCOME (LOSS) PER SHARE, DILUTED | $ | 0.08 | $ | (0.14 | ) | $ | 0.05 | $ | (0.22 | ) | ||||||
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 Income | Total | ||||||||||||||||||||||
| Balance, December 31, 2018 | 51,484,444 | $ | 51,484 | $ | - | $ | 254,989,657 | $ | (9,497,009 | ) | $ | (19,921,258 | ) | $ | 225,622,874 | |||||||||||||
| Stock issuance and award | 1,096,397 | 1,097 | - | 3,387,379 | - | - | 3,388,476 | |||||||||||||||||||||
| Net income (loss) | - | - | - | - | (4,409,472 | ) | - | (4,409,472 | ) | |||||||||||||||||||
| Foreign currency translation | - | - | - | - | - | 5,404,028 | 5,404,028 | |||||||||||||||||||||
| Balance, March 31, 2019 | 52,580,841 | $ | 52,581 | $ | - | $ | 258,377,036 | $ | (13,906,481 | ) | $ | (14,517,230 | ) | $ | 230,005,906 | |||||||||||||
| Stock issuance and award | 238,600 | 238 | 1,259,569 | 1,259,807 | ||||||||||||||||||||||||
| Net income (loss) | (7,318,158 | ) | (7,318,158 | ) | ||||||||||||||||||||||||
| Foreign currency translation | (4,915,589 | ) | (4,915,589 | ) | ||||||||||||||||||||||||
| Balance, June 30, 2019 | 52,819,441 | 52,819 | - | 259,636,605 | (21,224,639 | ) | (19,432,819 | ) | 219,031,966 | |||||||||||||||||||
| Number of Outstanding Shares | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | 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 income (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 (loss) | - | - | - | - | 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 | ||||||||||||||||||
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| June 30, 2020 | June 30, 2019 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income (loss) | $ | 2,480,400 | $ | (11,727,630 | ) | |||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
| Depreciation and amortization | 4,022,676 | 4,376,097 | ||||||
| Impairments | (148,054 | ) | 59,799 | |||||
| Allowance for doubtful accounts | - | 15,543 | ||||||
| Deferred taxes | 2,089,505 | 51,275 | ||||||
| Share of loss after tax of the Affiliate Company | 4,081,299 | 14,449,359 | ||||||
| Gain from equity dilution in the Affiliate Company | - | (4,341,259 | ) | |||||
| Gain on disposal of long-live asset | (13,907,574 | ) | - | |||||
| Change in fair value of contingent consideration | (2,863,000 | ) | (637,000 | ) | ||||
| Stock compensation cost | 847,546 | 1,314,408 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| (Increase) Decrease In: | ||||||||
| Accounts receivable | (1,431,388 | ) | (16,560,338 | ) | ||||
| Notes receivable | - | 250,593 | ||||||
| Notes receivable from the Affiliate Company and related party | - | 442,223 | ||||||
| Inventories | (743,483 | ) | (7,093,904 | ) | ||||
| Other receivables and other assets | (11,248,701 | ) | (6,258,341 | ) | ||||
| Advances to supplier and prepayments and prepaid expenses | (12,586,777 | ) | 708,825 | |||||
| Amount due from the Affiliate Company | 4,129,516 | (4,128,506 | ) | |||||
| Increase (Decrease) In: | ||||||||
| Accounts payable | (282,560 | ) | 387,505 | |||||
| Other payables and accrued liabilities | 736,715 | 7,868,402 | ||||||
| Notes payable | (10,664,922 | ) | (10,161,233 | ) | ||||
| Income tax payable | 1,161,312 | (2,134,722 | ) | |||||
| Net cash used in by operating activities | $ | (34,327,490 | ) | $ | (33,118,904 | ) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property, plant and equipment, net | (59,670 | ) | (512,707 | ) | ||||
| Proceeds from disposal of long-live asset | 34,696,547 | - | ||||||
| Cash received from equity sale in the Affiliate Company | 15,641,886 | - | ||||||
| Advance receipts of equity transfer | - | 14,740,783 | ||||||
| Net cash provided by investing activities | $ | 50,278,763 | $ | 14,228,076 | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from short-term loans | 24,031,625 | 17,541,532 | ||||||
| Repayments of short-term loans | (49,769,638 | ) | (15,920,046 | ) | ||||
| Proceeds from long-term loans | 394,116 | - | ||||||
| Repayments of long-term loans | (284,398 | ) | (147,408 | ) | ||||
| Net cash (used in) provided by financing activities | $ | (25,628,295 | ) | $ | 1,474,078 | |||
| NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (9,677,022 | ) | (17,416,750 | ) | ||||
| Effect of exchange rate changes on cash | (157,062 | ) | 246,604 | |||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 16,512,635 | 22,353,071 | ||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 6,678,551 | 5,182,925 | ||||||
| -CASH AND CASH EQUIVALENTS AT END OF PERIOD | 3,457,498 | 3,608,933 | ||||||
| -RESTRICTED CASH AT END OF PERIOD | 3,221,053 | 1,573,992 | ||||||
| SUPPLEMENTARY CASH FLOW INFORMATION | ||||||||
| Income taxes paid | 870,082 | 1,199,807 | ||||||
| Interest paid | 641,213 | 868,538 | ||||||
FAQ
What were Kandi Technologies' revenues for Q2 2020?
What is KNDI's net income for the second quarter of 2020?
How did Kandi's off-road vehicle sales perform in Q2 2020?
What did Kandi Technologies say about its future plans?
How did Kandi's gross margin change in Q2 2020?
