-Third quarter revenue increased 34.3% YoY to $17.15 Million
-Third quarter gross profit increased 27.6% YoY to $4.11 Million
-ATV and Go-Kart sales increased significantly in the third quarter
JINHUA, China, Nov. 14, 2013 (GLOBE NEWSWIRE) --- Kandi Technologies, Corp. (the 'Company' or 'Kandi') (Nasdaq:KNDI), today announced its unaudited financial results for the third quarter and nine months ended September 30, 2013.
Financial Highlights:
- Revenue for the third quarter was $17.15 million, an increase of 34.3% year-over-year from $12.77 million last year
- In the third quarter, ATV sales significantly grew 101.8% to $3.50 million, Go-Kart sales grew 52.4% to $9.91 million, and EV sales grew 2.5% to $2.85 million as compared to the same period of 2012
- The Company sold 494 electronic vehicles in Q3, compared to 471 last year
- Gross profit for the third quarter was $4.11 million, an increase of 27.6% year-over-year from $3.22 million last year
- Gross margin was 24.0%, compared to 25.3% in the third quarter of 2012
- GAAP net loss in the third quarter was ($7.69 million) due to a significant increase in the fair value of financial derivatives compared to net income of $0.59 million in the same period last year
- Net cash flow provided by operating activities was $20.93 million for the nine months ended September 30, 2013 compared to net cash flow used in operating activities of ($13.74) for the same period in 2012
Mr. Xiaoming Hu, Chairman and Chief Executive Officer of Kandi Technologies, commented, "We had a very busy and productive third quarter and were excited about Kandi's several achievements. At the end of July, the Public EV Sharing System in Hangzhou was launched. The first pure EV smart vertical parking and charging facility started its operation and we delivered the first 100 pure EVs for the trial operation of the system. Due to the attack of a typhoon in the Hangzhou area, the system is a bit behind schedule, and as of today, there are two parking/charging facilities completed and in use. There are 30 locations already chosen for building the facilities, of which 18 locations have begun construction. Additionally, Kandi established the new wholly owned subsidiary in Changxing and completed its ownership transfer to the JV Company."
"Given that the long awaited government subsidy policy for EVs is finally in place, we expect that sales of EVs will surge in the next few quarters, especially as the Public EV Sharing Project has progressed well. The trial operation of the Project has been going smoothly and the customers' feedbacks are positive. We remain optimistic about this business model of EV sharing for public transportation and believe it will greatly improve the efficiency of urban transportation and help ease major urban issues in China. We look forward to expanding this concept of public EV sharing into new regions in the near future." concluded by Mr. Hu.
| KANDI TECHNOLOGIES GROUP, INC. | ||||
| AND SUBSIDIARIES | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) | ||||
| (UNAUDITED) | ||||
| Three Months Ended | Nine Months Ended | |||
| September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |
| REVENUES, NET | $17,145,512 | $12,765,694 | $43,975,463 | $38,182,211 |
| COST OF GOODS SOLD | (13,032,352) | (9,541,687) | (33,673,048) | (29,829,097) |
| GROSS PROFIT | 4,113,160 | 3,224,007 | 10,302,415 | 8,353,114 |
| Research and development | (500,864) | (630,083) | (1,863,020) | (2,006,269) |
| Selling and marketing | (102,380) | (158,714) | (263,414) | (331,750) |
| General and administrative | (2,893,935) | (940,930) | (4,826,622) | (2,520,600) |
| INCOME FROM CONTINUING OPERATIONS | 615,981 | 1,494,280 | 3,349,359 | 3,494,495 |
| Interest income (expense), net | (1,184,282) | (76,866) | (2,472,377) | (133,806) |
| Change in fair value of financial instruments | (6,864,624) | (882,731) | (6,956,963) | 1,078,795 |
| Government grants | 11,077 | 20,634 | 60,884 | 45,942 |
| Investment (loss) income | (125,428) | (18,259) | (165,344) | (45,670) |
| Other income, net | 40,647 | 239,203 | 217,160 | 285,805 |
| INCOME (LOSS) FROM CONTINUING OPERATION BEFORE INCOME TAXES | (7,506,629) | 776,261 | (5,967,281) | 4,725,561 |
| INCOME TAX EXPENSE | (257,222) | (181,743) | (502,123) | (842,863) |
| INCOME FROM CONTINUING OPERATIONS | (7,763,851) | 594,518 | (6,469,404) | 3,882,698 |
| DISCONTINUED OPERATION | ||||
| Loss from discontinued operation | (350,320) | -- | (452,194) | -- |
| Gain from disposition of discontinued operation | 425,129 | -- | 425,129 | -- |
| NET INCOME (LOSS) FROM DISCONTINUED OPERATION | 74,809 | -- | (27,065) | -- |
| NET (LOSS) INCOME | (7,689,042) | 594,518 | (6,496,469) | 3,882,698 |
| OTHER COMPREHENSIVE INCOME | ||||
| Foreign currency translation | 322,798 | (260,114) | 1,632,143 | 2,569,341 |
| COMPREHENSIVE (LOSS) INCOME | $(7,366,244) | $334,404 | $(4,864,326) | $6,452,039 |
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 37,020,321 | 29,909,130 | 33,965,100 | 29,068,208 |
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 37,020,321 | 31,464,257 | 33,965,100 | 30,413,267 |
| NET (LOSS) INCOME PER SHARE, BASIC | $(0.21) | $0.02 | $(0.19) | $0.13 |
| NET (LOSS) INCOME PER SHARE, DILUTED | $(0.21) | $0.02 | $(0.19) | $0.13 |
| KANDI TECHNOLOGIES GROUP, INC. | ||
| AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| ASSETS | ||
| September 30, 2013 | December 31, 2012 | |
| (Unaudited) | ||
| CURRENT ASSETS | ||
| Cash and cash equivalents | $12,448,344 | $12,135,096 |
| R Restricted cash | 11,384,036 | 15,835,364 |
| Accounts receivable | 17,601,020 | 33,557,534 |
| Inventories (net of reserve for slow moving inventory of $0 and $56,248 as of September 30, 2013 and December 31, 2012 respectively) | 22,850,641 | 7,630,715 |
| Notes receivable | 11,499,348 | 9,562,429 |
| Other receivables | 1,329,421 | 501,448 |
| Prepayments and prepaid expenses | 654,844 | 563,861 |
| Due from employees | 41,217 | 40,936 |
| Advances to suppliers | 11,558,433 | 4,769,825 |
| Deferred tax | -- | -- |
| Deposit for acquisition | -- | 24,397,967 |
| Total Current Assets | 89,367,304 | 108,995,175 |
| LONG-TERM ASSETS | ||
| Plant and equipment, net | 30,842,372 | 35,725,740 |
| Land use rights, net | 14,454,381 | 14,337,691 |
| Construction in progress | -- | -- |
| Deferred taxes | -- | 695 |
| Investment in Joint Venture Company | 81,160,925 | -- |
| Investment in associated companies | 119,987 | 161,507 |
| Goodwill | 322,591 | 322,591 |
| Intangible assets | 680,019 | 741,591 |
| Total Long-Term Assets | 127,580,275 | 51,289,815 |
| TOTAL ASSETS | $216,947,579 | $160,284,990 |
| KANDI TECHNOLOGIES GROUP, INC. | ||
| AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| September 30, 2013 | December 31, 2012 | |
| (Unaudited) | ||
| CURRENT LIABILITIES | ||
| Accounts payable | $8,753,990 | $8,668,478 |
| Other payables and accrued expenses | 2,191,165 | 3,092,045 |
| Short-term bank loans | 34,301,135 | 32,615,063 |
| Customer deposits | 693,363 | 292,389 |
| Notes payable, net of discount of $0 and $0 as of September 30, 2013 and December 31, 2012 respectively | 27,962,740 | 25,332,088 |
| Deposit for disposal of subsidiary | 13,005,170 | |
| Income tax payable | 473,835 | 680,253 |
| Due to employees | 11,754 | 7,132 |
| Due to related party | 841,251 | 841,251 |
| Due to JV company | 20,268,557 | -- |
| Deferred taxes | 35,656 | 55,166 |
| Financial derivative - liability | 4,856,540 | 1,513,013 |
| Total Current Liabilities | 113,395,156 | 73,096,878 |
| LONG-TERM LIABILITIES | ||
| Bond payable | -- | 12,666,044 |
| Financial derivative - liability | 9,995,465 | -- |
| Deferred tax | 683,752 | -- |
| Total Long-Term Liabilities | 10,679,217 | 12,666,044 |
| TOTAL LIABILITIES | 124,074,373 | 85,762,922 |
| STOCKHOLDERS' EQUITY | ||
| Common stock, $0.001 par value; 100,000,000 shares authorized; 36,978,476 and 31,696,794 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 36,978 | 31,697 |
| Additional paid-in capital | 66,938,401 | 43,728,218 |
| Retained earnings (the restricted portion is $2,831,005 and $2,831,005 at September 30, 2013 and December 31, 2012, respectively) | 18,763,340 | 25,259,809 |
| Accumulated other comprehensive income | 7,134,487 | 5,502,344 |
| TOTAL STOCKHOLDERS' EQUITY | 92,873,206 | 74,522,068 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $216,947,579 | $160,284,990 |
| KANDI TECHNOLOGIES GROUP, INC. | ||
| AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (UNAUDITED) | ||
| Nine Months Ended September 30 | ||
| 2013 | 2012 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net (loss) income | $(6,496,469) | $3,882,698 |
| Net (loss) from discontinued operation | (27,065) | -- |
| Net (loss) income from continuing operation | (6,469,404) | 3,882,698 |
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
| Depreciation and amortization | 6,144,086 | 3,694,917 |
| Deferred taxes | 677,912 | 72,004 |
| Option expense | -- | 19,053 |
| Change of derivative instrument's fair value | 6,956,963 | (1,297,854) |
| Loss in investment in JV and associated company | 165,344 | 45,670 |
| Changes in operating assets and liabilities: | ||
| (Increase) Decrease In: | ||
| Accounts receivable | 16,665,031 | (13,939,987) |
| Inventories | (14,846,384) | (7,686,157) |
| Other receivables and prepaid expenses | (805,480) | 1,395,899 |
| Due from employees | 5,187 | 173,844 |
| Prepayments and prepaid expenses | (6,661,365) | (3,158,733) |
| Increase (Decrease) In: | ||
| Accounts payable | (144,929) | 5,888,514 |
| Other payables and accrued liabilities | (963,422) | (1,957,184) |
| Customer deposits | 388,714 | (899,693) |
| Due to related party | -- | -- |
| Due to JV company | 20,040,119 | -- |
| Income tax payable | (222,100) | 27,318 |
| Net cash (used in) provided by operating activities | $20,930,272 | $(13,739,691) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Cash acquired in acquisition | -- | 112,551 |
| Purchases of plant and equipment | (44,250) | (472,696) |
| Purchase of construction in progress | -- | (2,160,338) |
| Issuance of notes receivable | (1,972,619) | (1,010,596) |
| Repayments of notes receivable | 310,674 | 23,115,794 |
| Investment in Joint Venture Company | (80,366,213) | -- |
| Disposal of subsidiary | 64,292,970 | |
| Deposit for disposal of subsidiary | 12,858,594 | -- |
| Assets acquisition, net of deposit | (39,524,103) | -- |
| Net cash provided by (used in) investing activities | $(44,444,947) | $19,584,715 |
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.