– 2nd quarter revenue increased 9.9% YoY to $12.2 Million –
– 2nd quarter gross margin increased to 23.1% from 16.2% for the same period of 2012 –
– 2nd quarter Operating Income Increased 279.1% YoY to $0.7 Million –
– EV sales increased 40.0% to $2.0 Million in 2nd quarter –
– Company's legacy business experienced solid gains in the 2nd quarter –
JINHUA, China, Aug. 14, 2013 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the 'Company' or 'Kandi') (Nasdaq:KNDI), today announced its financial results for the second quarter and six months ended June 30, 2013.
Financial Highlights:
- Revenue for the second quarter grew 9.9% to $12.2 million from $11.1 million last year and revenue in the first half grew 5.5% to $26.8 million from $25.4 as compared to the period the year before;
- ATV unit sales grew significantly to 3546 units, up 81.5% from 1954 units in the same period last year, while go-kart unit sales jumped 112.4% in the second quarter to 8500 units up from 4001 units in last year's second quarter;
- Gross margin for the second quarter increased to 23.1% from 16.2% compared to the second quarter of 2012. Gross margin for the first half increased to 23.0% compared to 20.2% for the first half of 2012;
- Operating income rose 279.1% to $0.7 million compared with $0.2 million in the same period of last year;
- Non-GAAP adjusted net income in the second quarter, excluding the stock award expense and the change in the fair value of warrants, was $73,785, a significant change from a net loss of $99,273 for the same period of 2012
- On a GAAP basis, net loss for the second quarter was ($1.0 million), decreased from a net income of $0.9 million for the same period of last year due to the change in the fair value of warrants.
Mr. Xiaoming Hu, Chairman and Chief Executive Officer of Kandi Technologies, commented, "We are very satisfied with solid quarterly financial results, our strong sales of ATV & Go-kart and gross margin improvement over the quarter. Kandi has achieved a great progress in various EV projects, such as the government approval for the first Kandi-Geely co-developed pure electric sedan 'JL7001BEV', and the construction of the first pure EV smart vertical parking and charging facility for the initial launch of Hangzhou public EV sharing system. The Company recently successfully delivered the first 100 Kandi-Geely Co-developed Pure EVs. Additionally, we completed China's First Full Scale Production and Assembly Line Specialized for Pure EV. These have provided the foundation for the deployment of more EVs in the second half of 2013."
"Given the challenging capital market environment, Kandi was proud to raise $26.4 million through a registered direct placement at the end of June. This will allow us to accelerate our market penetration in various EV projects and different regional markets. In light of our partnership with Geely Auto (Hong Kong Stock Exchange: 175) so far, we have built a strong cooperative team together to develop China's new growth trends for the pure EV sector. We remain optimistic about our business and growth this year. " Mr. Hu concluded.
| KANDI TECHNOLOGIES, CORP. | ||||
| AND SUBSIDIARIES | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) | ||||
| (UNAUDITED) | ||||
| Three Months Ended | Six Months Ended | |||
| June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |
| REVENUES, NET | $12,157,827 | $11,060,976 | $26,820,348 | $25,416,517 |
| COST OF GOODS SOLD | (9,350,206) | (9,272,719) | (20,640,696) | (20,287,410) |
| GROSS PROFIT | 2,807,621 | 1,788,257 | 6,179,652 | 5,129,107 |
| Research and development | (672,491) | (620,090) | (1,362,156) | (1,376,186) |
| Selling and marketing | (71,420) | (79,201) | (161,034) | (173,036) |
| General and administrative | (1,332,279) | (896,050) | (2,025,243) | (1,579,670) |
| INCOME FROM CONTINUING OPERATIONS | 731,431 | 192,916 | 2,631,219 | 2,000,215 |
| Interest income (expense), net | (617,601) | (188,542) | (1,287,810) | (56,940) |
| Change in fair value of financial instruments | (1,082,735) | 1,018,576 | (92,339) | 1,961,526 |
| Government grants | 49,807 | 25,308 | 49,807 | 25,308 |
| Investment (loss) income | (25,893) | (14,010) | (39,916) | (27,411) |
| Other income, net | 54,148 | 12,134 | 176,513 | 46,602 |
| INCOME (LOSS) BEFORE INCOME TAXES | (890,843) | 1,046,382 | 1,437,474 | 3,949,300 |
| INCOME TAX EXPENSE | (153,457) | (141,154) | (244,901) | (661,120) |
| NET INCOME | (1,044,300) | 905,228 | 1,192,573 | 3,288,180 |
| OTHER COMPREHENSIVE INCOME | ||||
| Foreign currency translation | 724,430 | 2,434,039 | 1,309,345 | 2,829,455 |
| COMPREHENSIVE INCOME (LOSS) | $(319,870) | $3,339,267 | $2,501,918 | $6,117,635 |
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 32,546,877 | 29,845,122 | 32,427,538 | 28,647,746 |
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 32,546,877 | 31,166,260 | 32,676,702 | 29,990,967 |
| NET (LOSS) INCOME PER SHARE, BASIC | $(0.03) | $0.03 | $0.04 | $0.11 |
| NET (LOSS) INCOME PER SHARE, DILUTED | $(0.03) | $0.03 | $0.04 | $0.11 |
| KANDI TECHNOLOGIES, CORP. | ||
| AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| ASSETS | ||
| June 30, | December 31, | |
| 2013 | 2012 | |
| (Unaudited) | ||
| CURRENT ASSETS | ||
| Cash and cash equivalents | $10,082,212 | $12,135,096 |
| R Restricted cash | 11,316,337 | 15,835,364 |
| Accounts receivable | 25,089,825 | 33,557,534 |
| Inventories (net of reserve for slow moving inventory of $0 and $56,248 as of June 30, 2013 and December 31, 2012 respectively) | 17,705,983 | 7,630,715 |
| Notes receivable | 11,743,310 | 9,562,429 |
| Other receivables | 498,551 | 501,448 |
| Prepayments and prepaid expenses | 1,180,276 | 563,861 |
| Due from employees | 45,716 | 40,936 |
| Advances to suppliers | 31,638,766 | 4,769,825 |
| Deferred tax | 3,819 | -- |
| Deposit for acquisition | 39,227,885 | 24,397,967 |
| Total Current Assets | 148,532,680 | 108,995,175 |
| LONG-TERM ASSETS | ||
| Plant and equipment, net | 32,451,615 | 35,725,740 |
| Land use rights, net | 14,456,958 | 14,337,691 |
| Construction in progress | 53,657 | -- |
| Deferred taxes | -- | 695 |
| Investment in Joint Venture Company | 80,788,464 | |
| Investment in associated companies | 135,019 | 161,507 |
| Goodwill | 322,591 | 322,591 |
| Intangible assets | 700,543 | 741,591 |
| Total Long-Term Assets | 128,908,847 | 51,289,815 |
| TOTAL ASSETS | $277,441,527 | $160,284,990 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| June 30, | December 31, | |
| 2013 | 2012 | |
| (Unaudited) | ||
| CURRENT LIABILITIES | ||
| Accounts payable | $10,651,912 | $8,668,478 |
| Other payables and accrued expenses | 3,628,659 | 3,092,045 |
| Short-term bank loans | 33,289,163 | 32,615,063 |
| Customer deposits | 49,065 | 292,389 |
| Notes payable, net of discount of $0 and $0 as of June 30, 2013 and December 31, 2012 respectively | 68,842,313 | 25,332,088 |
| Income tax payable | 348,140 | 680,253 |
| Due to employees | 19,716 | 7,132 |
| Due to related party | 4,881,198 | 841,251 |
| deposit for disposal of subsidiary | 60,599,205 | |
| Deferred taxes | -- | 55,166 |
| Financial derivative - liability | 928,477 | 1,513,013 |
| Total Current Liabilities | 183,237,848 | 73,096,878 |
| LONG-TERM LIABILITIES | ||
| Bond payable | 12,927,830 | 12,666,044 |
| Deferred taxes | 385,397 | -- |
| Total Long-Term Liabilities | 13,313,227 | 12,666,044 |
| TOTAL LIABILITIES | 196,551,075 | 85,762,922 |
| STOCKHOLDERS' EQUITY | ||
| Common stock, $0.001 par value; 100,000,000 shares authorized; 32,592,440 and 31,696,794 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively | 32,592 | 31,697 |
| Additional paid-in capital | 47,593,789 | 43,728,218 |
| Retained earnings (the restricted portion is $2,831,005 and $2,831,005 at June 30, 2013 and December 31, 2012, respectively) | 26,452,382 | 25,259,809 |
| Accumulated other comprehensive income | 6,811,689 | 5,502,344 |
| TOTAL STOCKHOLDERS' EQUITY | 80,890,452 | 74,522,068 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $277,441,527 | $160,284,990 |
| KANDI TECHNOLOGIES, CORP. | ||
| AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (UNAUDITED) | ||
| Six Months Ended June 30 | ||
| 2013 | 2012 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net income (loss) | $1,192,573 | $3,288,180 |
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
| Depreciation and amortization | 4,245,026 | 2,470,911 |
| Deferred taxes | 337,149 | (24,219) |
| Option expense | -- | 19,053 |
| Change of derivative instrument's fair value | 92,339 | (1,961,526) |
| Loss in investment in JV and associated company | 39,916 | 27,411 |
| Changes in operating assets and liabilities: | ||
| (Increase) Decrease In: | ||
| Accounts receivable | 9,073,693 | (11,844,213) |
| Inventories | (9,822,727) | (6,826,372) |
| Other receivables and prepaid expenses | 13,044 | 1,701,831 |
| Due from employees | 8,421 | 185,624 |
| Prepayments and prepaid expenses | (27,114,014) | 30,204 |
| Increase (Decrease) In: | ||
| Accounts payable | 1,787,019 | 3,484,295 |
| Other payables and accrued liabilities | 475,451 | (1,990,887) |
| Customer deposits | (246,983) | (988,344) |
| Due to related party | 4,001,319 | -- |
| Income tax payable | (342,863) | (26,411) |
| Net cash (used in) provided by operating activities | $(16,260,637) | $(12,454,463) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Cash acquired in acquisition | -- | 112,551 |
| Purchases of plant and equipment | (54,451) | (452,393) |
| Purchase of construction in progress | (53,144) | (2,091,168) |
| Issuance of notes receivable | (1,964,278) | -- |
| Repayments of notes receivable | -- | 23,123,103 |
| Investment in Joint Venture Company | (80,026,377) | -- |
| Deposit for disposal of subsidiary | 60,019,783 | -- |
| Deposit for acquisition | (14,188,677) | -- |
| Net cash provided by (used in) investing activities | $(36,267,144) | $20,692,093 |
| Six Months Ended June 30 | ||
| 2013 | 2012 | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Restricted cash | $4,799,980 | $(20,103,142) |
| Proceeds from short-term bank loans | 22,407,385 | 14,749,822 |
| Repayments of short-term bank loans | (22,407,385) | (14,781,440) |
| Proceeds from notes payable | 68,184,073 | 15,160,857 |
| Repayments of notes payable | (25,608,441) | (5,883,855) |
| Stock market financing | -- | -- |
| Warrant exercise | 3,848,134 | -- |
| Option exercise & other financing | 38,100 | 67,403 |
| Common stock issued for acquisition, net of Cost of Capital | -- | 3,740,423 |
| Net cash provided by (used in) financing activities | 51,261,846 | (7,049,932) |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,265,935) | 1,187,698 |
| Effect of exchange rate changes on cash | (786,949) | 497,098 |
| Cash and cash equivalents at beginning of period | 12,135,096 | 2,294,352 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $10,082,212 | $3,979,148 |
| SUPPLEMENTARY CASH FLOW INFORMATION | ||
| Income taxes paid | $587,765 | $687,530 |
| Interest paid | $1,964,649 | $1,316,591 |
| Issuance of Common Stock for Acquisition | -- | 8,616,416 |
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (Nasdaq:KNDI), headquartered in Jinhua, Zhejiang Province, is engaged in the research and development, manufacturing and sales of various vehicles. Kandi has established itself as the one of the world's largest manufacturer of pure electric vehicles (EVs), Go-Kart vehicles, and tricycle and utility vehicles (UTVs), among others. More information can be viewed at its corporate website is 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 securities laws, the Company does not assume a duty to update these forward-looking statements.