Kandi Technologies Reports First Quarter 2022 Financial Results
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2022-05-09
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                                    -Revenue of $24.9 million, up nearly 56% year-over-year-

                         -Off-road vehicles and lithium-ion cells were primary revenue contributors-

-Quarter-end cash balance[   Includes cash, cash equivalents, restricted cash, and certificate of deposit.] of $229.2 million-


JINHUA, CHINA-- (May 9, 2022) - Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the first quarter of 2022.


First Quarter Highlights

Total revenues increased by 55.8% to $24.9 million, from $16.0 million in the same period of 2021.

EV parts sales were $3.7 million, compared to $6.4 million in the same period of 2021.

EV products sales increased by 179.8% to $0.3 million, compared to $0.1 million in the same period of 2021.

Off-road vehicles sales increased by 90.7% to $10.7 million, compared to $5.6 million in the same period of 2021.

Electric Scooters, Electric Self-Balancing Scooters and associated parts sales were $2.1 million, compared with $3.9 million in the same period of 2021.

Lithium-ion cells sales were $8.0 million. There were no comparable sales for the same period of 2021 since Jiangxi Huiyi New Energy CO., Ltd. (“Jiangxi Huiyi”), the entity that manufactures Lithium-ion cells, was acquired by the Company in October 2021.

Gross margin was 9.6%, compared to 27.3% for the same period of 2021.

Net loss was $1.6 million, or $0.02 loss per fully diluted share, compared to a net loss of $6.4 million, or $0.08 loss per fully diluted share for the same period of 2021.

As of March 31, 2022, working capital was $276.4 million; cash, cash equivalents, restricted cash and certificate of deposit totaled $229.2 million.


Mr. Hu Xiaoming, Chairman and CEO of Kandi commented, “We kicked off 2022 with solid revenue growth. One highlight was our all-electric off-road vehicles, which we developed last year in response to the growing demand we observed. Our team made substantial progress in the quarter. In February 2022, we established Hainan Kandi Holding New Energy Technology Co., Ltd. in Hainan province (“Hainan Kandi Holding”), which produces ‘crossover’ electric golf carts (“golf carts”). On February 22, 2022, SC Autosports and Coleman Powersports Inc. signed a memorandum of understanding (“MOU”) regarding the sales of $29 million (equivalent to 5,000 units) golf carts. In addition, on March 3, 2022, SC Autosports signed a sales MOU of $39 million (equivalent to 5,000 units) luxury golf carts with more than twenty dealers. Hainan Kandi Holding is already manufacturing the vehicles. By the end of April, a total of 778 units were shipped from Hainan province to SC Autosports. We are planning to deliver another 2,000 units in May this year.”


Hu continued, “Lithium-ion battery cells also contributed meaningfully to revenue.  This is the principal product of Jiangxi Huiyi, the leading battery manufacturer that we acquired last fall. That acquisition is making an immediate revenue contribution from production of batteries, strengthening our battery business. Also, it boosts our capability of integrating the supply chain of battery-powered vehicle products, which can be leveraged to generate substantial growth in the electric off-road vehicles and other battery-powered vehicle products.”


Q1 2022 Financial Results

Net Revenues and Gross Profit (in USD millions)

Q1 2022

Q1 2021

Y-o-Y%

Net Revenues

$24.9

$16.0

55.8%

Gross Profit

$2.4

$4.4

-45.2%

Gross Margin%

9.6%

27.3%

-

Net revenues of $24.9 million in the first quarter 2022 increased 55.8% from the same period of 2021. Revenue growth was primarily due to higher sales of off-road vehicles and the addition of lithium-ion cell sales, which were generated from the Jiangxi Huiyi acquisition in October 2021. Gross margin declined due to a mix shift to lower margin products such as the lithium-ion cells.  Furthermore, margin was impacted by the introduction of the new off-road vehicles into the US market, where value pricing was used to promote sales.


Operating Income/Loss (in USD millions)

Q1 2022

Q1 2021

Y-o-Y%

Operating Expenses

($8.1)

($27.2)

-70.3%

Loss from Operations 

($5.7)

($22.8)

-75.0%

Operating Margin%

-22.9%

-143.0%

-

Total operating expenses in the first quarter of 2022 were $8.1 million, compared with $27.2 million for the same period of 2021. The decrease was primarily due to lower R&D expense, as the Company’s R&D expenditure for new products was largely incurred in the first quarter of 2021.


Net Income/Loss (in USD millions)

Q1 2022

Q1 2021

Y-o-Y%

NetLoss

($1.6)

($6.4)

-74.7%

Net Loss per Share, Basic and Diluted

($0.02)

($0.08)

-

Net loss of $1.6 million in the first quarter of 2022 compares to a net loss of $6.4 million for the same period of 2021, with the decrease primarily coming from lower R&D expense.


First Quarter 2022 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, May 9, 2022. 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: https://event.choruscall.com/mediaframe/webcast.html?webcastid=sMgsHhtu

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.