-EV sales achieved 193.7% gains in Q4
-Q4 Revenue Increased 92.2% YoY to $50.6 Million
-Full Year Revenue Grew 46.5% YoY to $94.5 Million
JINHUA, China, March 17, 2014 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the 'Company' or 'Kandi') (Nasdaq:KNDI), today announced its financial results for the fourth quarter and full year ending December 31, 2013.
Fourth Quarter 2013 Highlights
- Revenues rose 92.0% to $50.6 million from $26.3 million in the fourth quarter of 2012. EV sales increased significantly to $40.0 million, a 193.7% jump from the same period last year. During the quarter, the Company sold 3,568 units of pure electronic vehicles
- Gross profit increased 152.0% to $11.4 million from $4.5 million in the same period last year
- GAAP net loss was ($14.7 million) compared to a net income of $2.2 million in the same period of last year, mainly due to increases of non-cash charges, such as change of fair value of financial derivatives, higher income tax, general and administrative expenses, and interest expenses
- Non-GAAP net income* was $4.6 million, up nearly 259% year-over-year from $1.3 million.
Full Year 2013 Highlights
-- Total revenues grew 46.5% to $94.5 million from $64.5 million in 2012
- ATV sales increased 62.6% to 10.4 million
- EV sales were up 144.9% to $46.6 million and the Company sold 4,694 units in the full year of 2013
- UTV sales grew 262.1% to $1.2 million
-- Gross profit increased 68.6% to $21.7 million compared to $12.9 million in 2012
-- Gross margin increased about three hundred basis points to 23.0%
-- GAAP net loss in 2013 was ($21.1 million) due to a significant increase in the fair value of financial derivatives, general and administrative expenses, and interest expenses compared to net income of $6.0 million in 2012
-- Non-GAAP net income* increased 23.9% to $5.2 million from $4.2 million from the previous year
*Non-GAAP net income is defined as excluding the change of the fair value of financial derivatives, the effects of option related expenses, the stock award expense, the Convertible Note's interest expense, and the effect caused by amortization of discount on Convertible Notes. We supply non-GAAP information because we believe it allows our investors to obtain a clearer understanding of our operations.
Mr. Xiaoming Hu, Chairman and Chief Executive Officer of Kandi Technologies commented, "We are very pleased to deliver an excellent financial performance for 2013, especially a robust Q4 result. As we have predicted in the past that 2013 was truly a breakthrough year for Kandi and our shareholders. The newly launched Public EV Sharing System in Hangzhou has been well received and highly recognized by our customers and various local governments as another innovative EV business model by Kandi. This EV sharing project was featured in the various national and international media outlets, such as China Central Television (CCTV), Associated Press (AP) and Bloomberg. During the year, we have formed and completed a strategic EV joint venture with Geely Auto which has already produced a profound impact on improving and expanding our EV business by a better consolidation of brands, resources and expertise to gain more market shares in China's pure EV sector."
"With the newly unveiled EV subsidy policy in China, many of our pending EV orders have begun to be fulfilled during the fourth quarter in which we sold 3,568 units. For full year 2013, we achieved our expectations for revenue growth, including that almost 50% of total revenue came from EV sales. We expect this growth momentum will carry well into 2014. Together with JV partner, Geeley Auto, we now have three full-scale specialized EV production facilities, located in Shanghai, Changxing and Jinhua, which enable us to meet the strong market demand for electric vehicles in coming years."
"It is noteworthy that Kandi was upgraded for the NASDAQ Global Select Market in the beginning of this year, which is another indication of our hard work to maximize shareholders' value. We look forward to another stellar year in 2014 as Kandi continues to expand our EV sharing business in our existing markets as well as other major cities in China. " Mr. Hu concluded.
| KANDI TECHNOLOGIES GROUP, INC. | ||
| AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||
| FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 | ||
| 2013 | 2012 | |
| REVENUES, NET | $94,536,045 | $64,513,670 |
| COST OF GOODS SOLD | (72,793,517) | (51,620,280) |
| GROSS PROFIT | 21,742,528 | 12,893,390 |
| Research and development | (3,728,730) | (2,877,283) |
| Selling and marketing | (399,504) | (455,983) |
| General and administrative | (16,056,107) | (4,250,832) |
| INCOME FROM CONTINUING OPERATIONS | 1,558,187 | 5,309,292 |
| Interest income | 1,516,477 | 2,658,104 |
| Interest (expense) | (4,395,353) | (2,775,891) |
| Government grants | 228,396 | 132,139 |
| Other, net | 676,257 | 332,936 |
| Change in fair value of financial instruments | (16,647,283) | 1,986,063 |
| Share of (loss) in associated companies | (69,056) | (69,429) |
| Share of profit after tax of JV | (2,414,354) | -- |
| INCOME (LOSS) BEFORE INCOME TAXES | (19,546,729) | 7,573,214 |
| INCOME TAX EXPENSE | (1,593,994) | (1,523,735) |
| NET (LOSS) INCOME | (21,140,723) | 6,049,479 |
| OTHER COMPREHENSIVE INCOME | ||
| Foreign currency translation | 2,112,902 | 424,623 |
| COMPREHENSIVE INCOME | $(19,027,821) | $6,474,102 |
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 34,707,973 | 29,439,328 |
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 34,707,973 | 29,677,325 |
| NET INCOME PER SHARE, BASIC | $(0.61) | $0.21 |
| NET INCOME PER SHARE, DILUTED | $(0.61) | $0.20 |
| KANDI TECHNOLOGIES GROUP, INC. | ||
| AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| ASSETS | ||
| December 31, | December 31, | |
| 2013 | 2012 | |
| CURRENT ASSETS | ||
| Cash and cash equivalents | $12,762,369 | $12,135,096 |
| Restricted cash | 1,636 | 15,835,364 |
| Accounts receivable | 31,370,862 | 33,557,534 |
| Inventories (net of provision for slow moving inventory of $352,734 and $56,248 as of December 31, 2013 and 2012 respectively) | 9,187,714 | 7,630,715 |
| Notes receivable | 13,794,094 | 9,562,429 |
| Other receivables | 556,904 | 501,448 |
| Prepayments and prepaid expenses | 505,513 | 563,861 |
| Due from employees | 34,272 | 40,936 |
| Advances to suppliers | 8,867,074 | 4,769,825 |
| Amount due from JV Company, net | 2,917,592 | -- |
| Deferred tax | 13,706 | -- |
| Deposit for acquisition | -- | 24,397,967 |
| Total Current Assets | 80,011,736 | 108,995,175 |
| LONG-TERM ASSETS | ||
| Plant and equipment, net | 29,333,516 | 35,725,740 |
| Land use rights, net | 14,453,191 | 14,337,691 |
| Construction in progress | 16,356 | -- |
| Deferred taxes | 81,076 | 695 |
| Investment in associated company | 96,838 | 161,507 |
| Investment in JV Company | 79,331,930 | -- |
| Goodwill | 322,591 | 322,591 |
| Intangible assets | 659,496 | 741,591 |
| Total Long-Term Assets | 124,294,994 | 51,289,815 |
| TOTAL ASSETS | $204,306,730 | $160,284,990 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| December 31, | December 31, | |
| 2013 | 2012 | |
| CURRENT LIABILITIES | ||
| Accounts payable | $22,843,143 | $8,668,478 |
| Other payables and accrued expenses | 2,422,613 | 3,092,045 |
| Short-term bank loans | 34,020,281 | 32,615,063 |
| Customer deposits | 44,404 | 292,389 |
| Notes payable | 16,683,023 | 25,332,088 |
| Income tax payable | 1,362,828 | 680,253 |
| Due to employees | 10,297 | 7,132 |
| Due to related party | -- | 841,251 |
| Deferred taxes | -- | 55,166 |
| Financial derivative - liability | 9,256,827 | 1,513,013 |
| Total Current Liabilities | 86,643,416 | 73,096,878 |
| LONG-TERM LIABILITIES | ||
| Deferred tax | 1,009,477 | -- |
| Bond payable | 13,084,724 | 12,666,044 |
| Financial derivatives - liability | 15,042,994 | -- |
| Total Long-Term Liabilities | 29,137,195 | 12,666,044 |
| TOTAL LIABILITIES | 115,780,611 | 85,762,922 |
| STOCKHOLDERS' EQUITY | ||
| Common stock, $0.001 par value; 100,000,000 shares authorized; 37,012,904 and 31,696,794 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively | 37,013 | 31,697 |
| Additional paid-in capital | 76,754,774 | 43,728,218 |
| Retained earnings (the restricted portion is $3,807,551 and $2,831,005 at December 31, 2013 and December 31, 2012, respectively) | 4,119,086 | 25,259,809 |
| Accumulated other comprehensive income | 7,615,246 | 5,502,344 |
| TOTAL STOCKHOLDERS' EQUITY | 88,526,119 | 74,522,068 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $204,306,730 | $160,284,990 |
| KANDI TECHNOLOGIES GROUP, INC. | ||
| AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOW | ||
| FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 | ||
| 2013 | 2012 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net (loss) income | $(21,140,723) | $6,049,479 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 7,708,923 | 4,978,626 |
| Assets impairments | 355,876 | 465,199 |
| Deferred taxes | 876,255 | 92,521 |
| Change in value of financial instruments | 16,647,283 | (1,986,063) |
| Loss in investment in associated company | 69,056 | 69,429 |
| Share of profit after tax of JV | 2,414,354 | -- |
| Option cost | -- | 19,053 |
| Changes in operating assets and liabilities, net of effects of acquisition: | ||
| (Increase) Decrease In: | ||
| Accounts receivable | 3,251,168 | (20,513,099) |
| Inventories | (1,287,045) | (904,355) |
| Other receivables | (38,491) | 1,955,055 |
| Due from employees | 10,797 | 37,117 |
| Prepayments and prepaid expenses | (3,810,447) | (4,285,489) |
| Amount due from JV | (2,877,972) | -- |
| Increase (Decrease) In: | ||
| Accounts payable | 13,699,528 | 3,566,354 |
| Other payables and accrued liabilities | (746,838) | (50,333) |
| Customer deposits | (254,151) | (740,419) |
| Income tax payable | 651,124 | 525,030 |
| Due to related party | (841,251) | -- |
| Net cash (used in) provided by operating activities | 14,687,446 | (10,721,895) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| (Purchases)/Disposal of plant and equipment, net | (158,830) | (9,072,230) |
| Purchases of construction in progress | (16,134) | -- |
| Deposit for acquisition | -- | (24,383,529) |
| Asset acquisition, net of deposit | (39,673,000) | -- |
| Disposal of subsidiary | 64,535,177 | -- |
| Issuance of notes receivable | (4,174,247) | (1,011,821) |
| Repayments of notes receivable | 311,844 | 29,603,171 |
| Investment in JV | (80,668,972) | -- |
| Cash acquired in acquisition | -- | 112,551 |
| Net cash provided by (used in) investing activities | (59,844,162) | (4,751,858) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Restricted cash | 16,135,044 | (9,143,907) |
| Proceeds from short-term bank loans | 52,918,845 | 41,504,215 |
| Repayments of short-term bank loans | (52,596,170) | (45,539,128) |
| Proceeds from notes payable | 83,251,992 | 40,491,531 |
| Repayments of notes payable | (92,609,593) | (21,063,559) |
| Proceeds from bond payable | 12,907,035 | 12,658,548 |
| Repayments of bond payable | (12,907,035) | -- |
| Fund raising through issuing common stock and warrants | 26,387,498 | -- |
| Option exercise, stock award & other financing | 9,659,103 | 1,258,231 |
| Warrant exercise | 3,171,259 | 1,672,739 |
| Common stock issued for acquisition, net of cost of capital | -- | 3,784,149 |
| Net cash provided by financing activities | 46,317,978 | 25,622,819 |
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,161,262 | 10,149,066 |
| Effect of exchange rate changes on cash | (533,989) | (308,322) |
| Cash and cash equivalents at beginning of year | 12,135,096 | 2,294,352 |
| CASH AND CASH EQUIVALENTS AT END OF YEAR | $12,762,369 | $12,135,096 |
| SUPPLEMENTARY CASH FLOW INFORMATION | ||
| Income taxes paid | $942,870 | $998,706 |
| Interest paid | $3,565,496 | $2,570,691 |
| 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.