Kandi Technologies Reports Second Quarter 2021 Financial Results
Marketing activities
2021-08-09
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                                                                       --Revenue of approx. $30 million, +54% y/y--

                                         --Net Income of approx. $41 million ($0.54 per fully diluted share), +900% y/y--

                                                     --Working Capital of approx. $300 million, cash totaled $202.4 million --


JINHUA, CHINA-- (August 9, 2021) - Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced financial results for the second quarter of2021.

Second Quarter Highlights

• Total revenuesincreased by 53.7% to $29.9 million, from $19.4 million in the same period of 2020.

• EV parts sales were $6.7 million, compared to $12.5 million in the same period of 2020.

• Off-road vehicles sales were $5.5 million, compared to $6.6 million in the same period of2020.

• Electric Scooters, Electric Self-Balancing Scooters and associated parts sales were $16.5 million, compared to $0.4 million in the same period of 2020, This growth represents a successful strategic initiative to sell intelligent transportation products after the COVID-19 outbreak seriously impacted the EV market in 2020.

• Battery exchange equipment and battery exchange service sales were $0.6 million. As a new business, there was no revenue in the same period of 2020.

• Gross margin was 20.4%, compared to 18.2% for the same period of2020.

• Net income was $40.9 million, or $0.54 per fully diluted shareprimarily due to a gain on the disposal of a long-live asset recognizedas part of our Jinhua facility relocation that was completed in the second quarter.This compares to a net income of $4.1 million, or $0.08 per fully diluted sharefor the same period of2020.

• As of June 30, 2021, working capital was $297.3 million.Cash, cash equivalents, restricted cash, and certificate of deposit totaled $202.4million.

Mr. Hu Xiaoming, Chairman and CEO of Kandi commented: “We are excited to see both strong revenue growth and profitability.  Last year, as the Covid-19 pandemic impacted our EV business, we undertook a strategic initiative to find new markets for our industry-leading technology.  This pivot to new markets is proved successful, as you can see by our strong growth in intelligent mobility sector and associated parts.  Furthermore, operating cash flow was robust because we received final payments for the Jinhua Facility relocation.  The vacated old factory property metthe inspection authorities’ stipulated conditions, itwas returned to the government, andwe received the agreed payments. With this cash inflow, our balance sheet is even stronger for pursuing the multiple growth opportunities we see ahead of us.”

Elaborating on Kandi’s commitment to R&D, Hu stated, “As we noted last quarter, there are significant growth opportunities in affordable short-distance EVs for the China market, and in UTVs for the U.S. market. In May, we unveiled the K32 premium UTV, which is produced at our factory in Hainan, China. The K32 features pure electric four-wheel-drive propulsion and a fully enclosed cockpit with air conditioning.We intend to sell the K32 in the U.S. by the end of this year.”

Turning to acquisitions, Hu commented, “Last month, we announced the acquisition of Jiangxi Huiyi, which pushes us further into the battery cell business. Jiangxi Huiyi is a leadingbattery cell producer with intelligent production lines that each day can manufactureapproximately 250,000 units of18650 lithium-ion rechargeable cells.  Today, the cells are implemented in various consumer applications.Equipped with this technology, Kandi will now focus on EV battery packs as well as other appropriate consumer products.”

Q22021 Financial Results

Net Revenues and Gross Profit (in USD millions)

2Q21

2Q20

Y/Y%

Net Revenue

$29.9

$19.4

53.7%

Gross Profit

$6.1

$3.5

72.4%

Gross Margin

20.4%

18.2%

-

Net revenues of $29.9 million increased53.7% from the second quarter of 2020. The increase in revenue was primarily due to the growth in salesof Electric Scooters, Electric Self-Balancing Scooters and associated parts. This segment hada higher gross margin than othersegments, resulting in 20.4% gross margin in the second quarter of 2021, higher than 18.2% for the same period of 2020.

Operating Income/Loss(in USD millions)


2Q21

2Q20

Y/Y%

Operating Income

$38.3

$8.1

373.3%

Income from Operations

$44.4

$11.6

281.7%

Operating Margin

148.5%

59.8%

-

Net Income (in USD millions)Operating income was $38.3million, compared with $8.1 million in the second quarter of 2020. The increasewas primarily attributable to the gain on disposal of a long-lived asset related to the Jinhua facility relocation.



Net Income (in USD millions)

2Q21

2Q20

Y/Y%

Net Income

$40.9

$4.1

909.3%

Net Income per Weighted Average Common Share

$0.54

$0.08

-

Net Income per Weighted Average Diluted Share

$0.54

$0.08

-

Net income was $40.9 million, compared with a net income of $4.1 million in the same period of 2020.The greaterincome was primarily attributable tothe gain on disposal of a long-lived asset recognized in the second quarter of 2021.


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, August 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: +1-877-407-3982

• International dial-in number: + 1-201-493-6780

• Webcast and replay:http://public.viavid.com/index.php?id=146195

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.