Kandi Technologies Reports 2024 Financial Results

Revenue Of $127.6M up 3.2% YoY, Supported by Expanded Product Reach And Improved Geographic BalanceElectric Off-Road Vehicle Revenue Rose 8.9% YoY, Reinforcing Core Segment LeadershipEnhanced Supply Chain Flexibility with Taiwan Upgrades, While Progressing Steadily Toward U.S. Localization Goals JINHUA, China, April 28, 2025 (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, 2024. Full Year 2024 Highlights Total revenue increased to $127.6 million, a 3.2% increase from $123.6 million in 2023. By segment: Sales of off-road vehicles and associated parts rose 8.9% year-over-year to $116.6 million, accounting for over 91% of total annual revenue.By geography: Revenue from China grew 80% year-over-year, contributing to a more balanced and diversified geographic sales mix. Recorded gross profit of $39.3 million, reflecting solid overall profitability.Gross margin down to 30.8% from 33.5%, primarily impacted by regional and product mix shifts.R&D spending increased 17.1%, focusing on next-generation battery products and new electric off-road vehicle model development, further strengthening the Company’s technological foundation.Ended the year with a strong liquidity, including $126.3 million in cash and cash equivalents, restricted cash and certificate of deposit as of December 31, 2024.Drove strong growth in the electric off-road vehicle segment through new model launches, themed marketing campaigns, and deeper collaboration with local retailers and distributors in the U.S. and Canada.Enhanced supply chain flexibility and scalability through upgrades to the Company’s Taiwan-based manufacturing operations, supporting long-term sustainable growth.During 2024, the Company repurchased 1,892,568 shares of ordinary shares at an average price of $2.05 per share, demonstrating ongoing confidence in the Company's intrinsic value and long-term growth prospects. Feng Chen, CEO of Kandi, commented, “In 2024, Kandi expanded its footprint across North America, executing with discipline to launch several new electric utility vehicles and crossover golf carts tailored to U.S. consumer preferences. Themed models, including those inspired by major sports brands, enhanced our brand visibility and strengthened appeal in the recreational segment. Supported by broader retail access and our entry into the Canadian market, these efforts helped expand customer reach and contributed to the resilience of our electric off-road vehicle portfolio amid shifting market conditions.” Feng continued, “Complementing our product traction, we broadened our distribution network across the U.S., reinforcing our ability to meet rising demand and support long-term market penetration. This geographic and channel expansion has further solidified the foundation for sustained sales performance. On the supply chain side, our collaboration with Hartford Industrial is improving production efficiency and flexibility through enhanced Taiwan-based manufacturing capabilities, supporting greater operational resilience for our off-road vehicle business.” Feng also highlighted, “More recently, we announced a strategic alliance with CBAK Energy to establish localized lithium battery production facilities in the United States. This initiative marks a significant milestone in Kandi’s North American strategy. By establishing local production capacity for both battery cells and packs, we are not only better positioned to meet growing demand for electric off-road and recreational vehicles but also to navigate international trade dynamics, including tariffs, more effectively. The partnership strengthens our supply chain, aligns with the clean energy incentives of the U.S. Inflation Reduction Act, and creates new runway for long-term growth.” Looking ahead, Feng emphasized, “We are energized by the road ahead. With deeper industry partnerships, expanding infrastructure, and a focused commitment to innovation and execution, Kandi is well-positioned to seize new opportunities and deliver real, lasting value to the market.” Full Year 2024 Financial Results Net Revenues and Gross Profit (in USD millions) 2024 2023 Y-o-Y%Net Revenues$127.6 $123.6 3.2% Gross Profit$39.3 $41.4 -5.1% Gross Margin%30.8% 33.5% - Our net revenues increased to $127.6 million, a 3.2% rise from $123.6 million in 2023, driven by higher sales of electric off-road vehicles, which accounted for over 91% of total revenue. Notably, revenue from the China market grew 80% year-over-year, helping to partially offset a decline in U.S. sales. Gross profit reached $39.3 million, with a gross margin of 30.8%, compared to 33.5% in the prior year. The margin contraction was primarily due to regional and product mix shifts, though overall profitability remained solid. Operating Loss (in USD millions) 2024 2023 Y-o-Y%Operating Expenses($108.1) ($54.4) 98.5% Loss from Operations($68.8) ($13.1) 427.0% Operating Margin%-53.9% -10.6% - Total operating expenses increased to $108.1 million, reflecting continued investment in retail expansion, organizational development, and strategic repositioning. The increase also includes a one-time, non-cash impairment loss of $24.1 million, primarily related to long-lived assets, accounting for approximately 22% of total operating expenses. Selling and marketing expenses rose to support broader distribution coverage, while administrative costs included provisions to strengthen operational discipline. These proactive investments and accounting adjustments contributed to a loss from operations of $68.8 million, compared to $13.1 million in the prior year. Net Income/Loss 2024 2023 Y-o-Y% Net (Loss) Income (in USD millions)($51.0)$1.7 N/M Net (Loss) Income per Share, Basic and Diluted($0.59)$0.02 - We recorded a net loss of $51.0 million, compared to a net income of $1.7 million in 2023. The shift to a net loss was primarily driven by increased operating expenses, which included a one-time, non-cash impairment loss associated with strategic business adjustments. Despite these impacts, the Company remained focused on strengthening its core electric off-road vehicle business and made forward-looking investments aimed at building long-term shareholder value. Full Year 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 (8:00 P.M. Beijing Time) on Monday, April 28, 2025. 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: +1-877-407-3982International dial-in number: + 1-201-493-6780Webcast and replay: https://viavid.webcasts.com/starthere.jsp?ei=1717223&tp_key=6b62938ea7 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. Zhejiang Kandi Technologies has established itself as one of China's leading manufacturers of pure electric vehicle parts and off-road vehicles. For more information, please visit http://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) 551-3610IR@kandigroup.com The Blueshirt GroupMr. Gary Dvorchak, CFAgary@blueshirtgroup.com - Tables Below - KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS December 31, 2024 December 31, 2023 CURRENT ASSETS Cash and cash equivalents $37,307,867 $33,756,941 Restricted cash 83,530,443 59,873,127 Certificate of deposit 5,481,329 33,947,212 Accounts receivable (net of allowance for doubtful accounts of $3,680,803 and $2,886,223 as of December 31, 2024 and December 31, 2023, respectively) 26,462,884 18,951,745 Inventories 51,268,075 61,551,268 Notes receivable 346,202 124,473,111 Other receivables 144,721,398 6,476,542 Prepayments and prepaid expense 4,967,736 1,909,094 Advances to suppliers 562,094 2,609,098 TOTAL CURRENT ASSETS 354,648,028 343,548,138 NON-CURRENT ASSETS Property, plant and equipment, net 63,503,610 98,803,772 Intangible assets, net 3,893,128 6,395,825 Land use rights, net 2,586,628 2,754,442 Deferred tax assets 6,496,863 814,610 Long-term investment 1,413,065 - Goodwill 31,182,116 33,146,682 Other long-term assets 10,173,183 9,993,130 TOTAL NON-CURRENT ASSETS 119,248,593 151,908,461 TOTAL ASSETS $473,896,621 $495,456,599 CURRENT LIABILITIES Accounts payable $25,475,725 $28,744,854 Other payables and accrued expenses 8,544,046 7,252,814 Short-term loans 37,528,831 9,072,336 Notes payable 41,620,702 24,071,461 Income tax payable 1,430,612 2,130,083 Other current liabilities 5,794,987 5,402,081 TOTAL CURRENT LIABILITIES 120,394,903 76,673,629 NON-CURRENT LIABILITIES Long-term loans 5,706,510 8,389,163 Deferred taxes liability 524,903 963,691 Contingent consideration liability - 2,693,000 Other long-term liabilities 640,839 227,024 TOTAL NON-CURRENT LIABILITIES 6,872,252 12,272,878 TOTAL LIABILITIES 127,267,155 88,946,507 STOCKHOLDER’S EQUITY Ordinary Shares, $0.001 par value; 100,000,000 shares authorized; 87,552,800 and 87,532,800 shares issued and 85,475,666 and 87,348,234 outstanding at December 31,2024 and December 31,2023, respectively 87,553 87,533 Less: Treasury stock (2,077,134 shares with average price of $2.11 and 184,566 shares with average price of $2.75 at December 31, 2024 and December 31, 2023, respectively ) (4,385,882) (507,013)Additional paid-in capital 463,922,873 457,847,155 Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at December 31, 2024 and December 31, 2023, respectively) (66,828,296) (16,332,633)Accumulated other comprehensive loss (48,097,215) (36,970,066)TOTAL KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS’ EQUITY 344,699,033 404,124,976 Non-controlling interests 1,930,433 2,385,116 TOTAL STOCKHOLDERS’ EQUITY 346,629,466 406,510,092 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $473,896,621 $495,456,599 KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE INCOME (LOSS)FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 Years Ended December 31,2024 December 31,2023 December 31, 2022 REVENUES, NET $127,569,613 123,599,232 117,813,049 COST OF GOODS SOLD (88,299,242) (82,229,209) (98,295,323) GROSS PROFIT 39,270,371 41,370,023 19,517,726 OPERATING EXPENSE: Research and development (4,995,940) (4,265,176) (6,029,608)Selling and marketing (21,237,864) (13,335,950) (5,501,475)General and administrative (57,683,262) (35,381,496) (32,325,889)Impairment of goodwill - (496,981) (642,665)Impairment of long-lived assets (24,135,226) (942,591) (2,697,521)TOTAL OPERATING EXPENSE (108,052,292) (54,422,194) (47,197,158) LOSS FROM OPERATIONS (68,781,921) (13,052,171) (27,679,432) OTHER INCOME (EXPENSE): Interest income 10,046,204 9,984,558 6,427,502 Interest expense (2,195,618) (1,327,341) (707,488)Change in fair value of contingent consideration 2,693,000 1,803,000 4,196,995 Government grants 1,620,632 2,017,551 1,639,328 Other income, net 537,966 4,047,074 2,784,561 TOTAL OTHER INCOME, NET 12,702,184 16,524,842 14,340,898 (LOSS) INCOME BEFORE INCOME TAXES (56,079,737) 3,472,671 (13,338,534) INCOME TAX BENEFIT (EXPENSE) 5,129,391 (1,802,904) 487,510 NET (LOSS) INCOME (50,950,346) 1,669,767 (12,851,024) LESS: NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (454,683) 1,662,635 (727,361) NET (LOSS) INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS (50,495,663) 7,132 (12,123,663) OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (11,127,149) (8,636,827) (28,585,025) COMPREHENSIVE LOSS $(62,077,495)$(6,967,060)$(41,436,049) WEIGHTED AVERAGE SHARES OUTSTANDING BASIC 86,317,058 78,781,094 75,571,702 WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED 86,317,058 79,902,891 75,571,702 NET (LOSS) INCOME PER SHARE, BASIC $(0.59)$0.02 $(0.17)NET (LOSS) INCOME PER SHARE, DILUTED $(0.59)$0.02 $(0.17) NET (LOSS) INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE, BASIC $(0.59)$0.00 $(0.16)NET (LOSS) INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE, DILUTED $(0.59)$0.00 $(0.16) KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITYFOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 Number ofOutstandingShares CommonStock TreasuryStock AdditionalPaid-inCapital AccumulatedDeficit AccumulatedOtherComprehensiveIncome(Loss） Non-controllinginterests 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 Stock issuance and award 20,000 20 - 4,532,762 - - - 4,532,782 Stock based compensation - - - 1,584,443 - - - 1,584,443 Stock buyback - - (3,878,869) (41,487) - - - (3,920,356)Net loss - - - - (50,495,663) - (454,683) (50,950,346)Foreign currency translation - - - - - (11,127,149) - (11,127,149)BALANCE AS OF DECEMBER 31, 2024 87,552,800 $87,553 $(4,385,882)$463,922,873 $(66,828,296)$(48,097,215)$1,930,433 $346,629,466 KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 Years Ended December 31, 2024 December 31, 2023 December 31, 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $(50,950,346)$1,669,767 $(12,851,024)Adjustments to reconcile net (loss) income to net cash provided by operating activities Depreciation and amortization 12,021,015 11,913,647 12,427,973 Impairments 45,499,258 1,439,573 3,340,186 Provision of allowance for doubtful accounts 884,134 656,330 (542,801)Deferred taxes (6,140,342) 203,236 (461,045)(Gain) Loss from long-term Investment (419,114) 141,389 - Loss from disposal of a subsidiary 2,826,213 - - Change in fair value of contingent consideration (2,693,000) (1,803,000) (4,196,995)Stock award and stock based compensation expense 7,114,524 11,059,801 1,926,376 Changes in operating assets and liabilities: Accounts receivable (29,770,703) 10,560,521 (20,965,140)Notes receivable 131,350,242 (123,992,862) 4,726,570 Inventories (11,581,779) (21,531,323) (9,145,298)Other receivables and other assets (141,311,335) 5,165,337 (4,932,463)Advances to supplier and prepayments and prepaid expenses (1,095,052) 1,491,762 16,275,678 Increase (Decrease) In: Accounts payable 79,040,317 38,603,301 62,592,477 Other payables and accrued liabilities 3,315,701 (5,062,494) 7,842,715 Notes payable (55,334,895) (32,629,627) (24,533,127)Income tax payable (575,250) 954,006 (25,171)Net cash (used in) provided by operating activities $(17,820,412)$(101,160,636)$31,478,911 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment, net (934,985) (13,172,512) (3,690,235)Payment for construction in progress - (75,185) (129,894)Certificate of deposit 27,831,121 45,244,390 (31,210,986)Acquisition (Disposal) of NGI (157,211) 282,135 - Long-term Investment (1,015,836) - - Net cash provided by (used in) investing activities $25,723,089 $32,278,828 $(35,031,115) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from short-term loans 66,203,360 23,420,534 30,765,776 Repayments of short-term loans (37,489,677) (19,709,663) (28,357,211)Repayments of long-term loans (2,284,081) (46,426) - Proceeds from long-term loans - 8,225,000 - Contribution from non-controlling shareholder - - 757,981 Purchase of treasury stock (3,920,356) (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 $22,509,246 $14,828,688 $(4,333,088) NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH $30,411,923 $(54,053,120)$(7,885,292)Effect of exchange rate changes $(3,203,681)$(3,357,083)$(9,750,444)CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR $93,630,068 $151,040,271 $168,676,007 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD $120,838,310 $93,630,068 $151,040,271 -CASH AND CASH EQUIVALENTS AT END OF PERIOD 37,307,867 33,756,941 84,063,717 -RESTRICTED CASH AT END OF PERIOD 83,530,443 59,873,127 66,976,554 SUPPLEMENTARY CASH FLOW INFORMATION Income taxes paid $859,673 $311,504 $350,002 Interest paid $1,737,738 $965,025 $345,451 SUPPLEMENTAL NON-CASH DISCLOSURES: Contribution from non-controlling shareholder by inventories, fixed assets and intangible assets $- $- $393,986 Ordinary Shares issued for settlement of payables related to acquisitions (see Note 19) $- $1,812,005 $-

Kandi Technologies Reports 2024 Financial Results

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