Kandi Technologies Group, Inc. (the “Company”, “we” or “Kandi”)
(NASDAQ GS: KNDI), today announced its financial results for the
third quarter of 2024.
Third Quarter and Nine Months 2024 Financial
Highlights
- Q3 revenues
decreased to $29.9 million, from $36.4 million in the same period
of 2023.
- Nine-month revenues
of $89.8 million slipped 5.7% year-over-year.
- Off-road vehicles
and associated parts in Q3 were the primary source of revenue,
decreasing by 9.2% y/y to $27.5 million, compared to $30.2 million
in the same period of 2023.
- Nine-month revenue
from off-road vehicles and associated parts decreased by 1.0% y/y
to $81.5 million, compared to $82.3 million in the same period of
2023.
- Nine-month net loss
was $1.8 million, or $0.02 loss per fully diluted share, compared
to a net income of $6.3 million, or $0.08 income per fully diluted
share for the same period of 2023.
- Solid financial
standing with $260 million in cash and cash equivalents, restricted
cash, short term investment, and certificate of deposit as of
September 30, 2024.
Feng Chen, Kandi’s newly appointed CEO, stated,
“Revenue temporarily declined this year due to changes in the sales
model for our fully-electric off-road vehicles. In response, the
new management team has developed a comprehensive 2025-2029 growth
plan, tailored to our current position and approved by the Board.
With disciplined execution of our strategic and operational plans,
we are confident that each business segment is positioned to reach
new height.”
“We see significant growth potential in the
all-electric off-road vehicle segment. Over the past few years,
we’ve built a solid foundation in technology, product offerings,
and market presence. Our golf carts and other models are highly
competitive, well-regarded by consumers, and supported by strong
partnerships with key clients like Lowe’s. Notably, the recent
launch of our NFL-branded golf carts, featuring all 32 NFL teams
and available exclusively at Lowe’s, has further strengthened the
Kandi brand. Moving forward, we will build on our advantages in
technological innovation, product enhancement, and distribution to
grow our market share.”
“In today’s complex global economic environment,
we are mindful of concerns about trade tensions. To address these
challenges, our 2025-2029 growth plan includes targeted measures.
We intend to set up U.S.-based production lines for golf carts,
utility vehicles, and lithium batteries to better serve the North
American market. These local facilities will bring our products
closer to key markets, significantly enhancing delivery times and
after-sales support. At the same time, we will continue expanding
our global presence, targeting new markets in Southeast Asia, the
Middle East, Europe, and beyond with a competitive product
portfolio.”
“Even as we navigate shifts in international
markets, we are implementing a strategy for growth in China. Our
initial focus will be on expanding into smart mobility, a
high-growth sector gaining traction with Chinese consumers, where
we aim to establish a strong position. Additionally, we will
leverage our expertise in manufacturing battery swapping equipment
and our experience in battery swapping operations to support major
providers in China with advanced technology and services, striving
to position Kandi as a leading supplier and operator in China’s
battery-swapping market to drive further growth for the
company.”
Share Repurchase
As of September 30, 2024, the Company had
repurchased a total of 1,480,786 common shares at an average price
of $2.49 per share under the repurchase plan, including a total of
58,022 common shares at an average price of $2.18 per share
repurchased in the third quarter of 2024.
Q3 2024 Key Financial Results
Net Revenues and Gross Profit (in USD millions)
|
|
Q3 2024 |
Q3 2023 |
Y-o-Y% |
|
Net Revenues |
$29.9 |
|
$36.4 |
|
-17.8% |
|
|
Gross Profit |
$9.4 |
|
$10.9 |
|
-14.2% |
|
|
Gross Margin% |
|
31.3% |
|
|
30.0% |
|
- |
|
- Total
revenues in the third quarter of 2024 were $29.9 million, compared
to $36.4 million in the same period of 2023, representing a
decrease of 17.8%, mainly due to a decrease in sales of off-road
vehicles, EV parts and lithium-ion cells compared to the prior
period.
- Cost of
goods sold in the third quarter of 2024 was $20.6 million, compared
to $25.5 million in the same period of 2023, representing a
decrease of 19.4%. The decrease was primarily due to the
corresponding decrease in sales.
- Gross
profit in the third quarter of 2024 was $9.4 million, compared to
$10.9 million in the same period of 2023, representing a decrease
of 14.2%. The overall gross margin for the third quarter was 31.3%,
up slightly from 30.0% in the same period of 2023, showing a modest
year-over-year improvement in gross margin between the two
periods.
Operating Loss (in USD millions)
|
|
Q3 2024 |
Q3 2023 |
Y-o-Y% |
|
Operating Expenses |
($16.1 |
) |
($14.5 |
) |
11.0% |
|
|
Loss from Operations |
($6.7 |
) |
($3.6 |
) |
87.6% |
|
|
Operating Margin% |
|
-22.5% |
|
|
-9.8% |
|
- |
|
- Research
and development expenses totaled $2.3 million for the third quarter
of 2024, an increase of 148.7% compared to $0.9 million for the
same period in 2023. The increase was mainly due to a research and
development project for battery products conducted in the third
quarter.
- Selling
and distribution expenses totaled $3.1 million for the third
quarter of 2024, a decrease of 26.0% compared to $4.2 million for
the same period in 2023. The decrease was mainly due to lower
shipping and storage expenses incurred in the third quarter.
- General
and administrative expenses totaled $10.7 million for the third
quarter of 2024, an increase of 13.7% compared to $9.5 million for
the same period in 2023. The increase was primarily due to higher
salaries and professional service fees incurred in the third
quarter.
Net Income (loss) (in USD millions)
|
|
Q3 2024 |
Q3 2023 |
Y-o-Y% |
|
Net (Loss) Income |
($4.2 |
) |
$1.3 |
NM |
|
Net (Loss) Income per Share, Basic and Diluted |
($0.05 |
) |
$0.02 |
- |
|
Net (Loss) Income attributable to Kandi |
($4.1 |
) |
$0.9 |
NM |
|
Net (Loss) Income attributable to Kandi per Share, Basic and
Diluted |
($0.05 |
) |
$0.01 |
- |
- Net loss was $4.2
million for the third quarter of 2024, compared to net income of
$1.3 million for the same period in 2023. The shift was mainly
driven by a decrease in gross profit and other income, along with
increased operating expenses compared to the prior period.
Balance Sheet (in USD millions)
- Working
capital was $274.9 million as of September 30, 2024.
Third Quarter 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 (9:00 P.M.
Beijing Time) on Monday, November 18, 2024. 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://viavid.webcasts.com/starthere.jsp?ei=1698022&tp_key=93f9b92661
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 Kandi Electric Vehicles (Hainan) 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.
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.co
|
KANDI TECHNOLOGIES GROUP, INC.AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(UNAUDITED)(All amounts in
thousands) |
|
|
|
September 30, 2024 |
|
December 31, 2023 |
| |
|
(Unaudited) |
|
|
| CURRENT
ASSETS |
|
|
|
|
| Cash and cash equivalents |
$ |
53,526 |
$ |
33,757 |
| Restricted cash |
|
165,391 |
|
59,873 |
| Short term investment |
|
713 |
|
- |
| Certificate of deposit |
|
39,921 |
|
33,947 |
| Accounts receivable |
|
35,215 |
|
18,952 |
| Inventories |
|
85,797 |
|
61,551 |
| Notes receivable |
|
64 |
|
124,473 |
| Other receivables |
|
10,614 |
|
6,477 |
| Prepayments and prepaid
expense |
|
4,848 |
|
1,909 |
| Advances to suppliers |
|
593 |
|
2,609 |
| TOTAL CURRENT
ASSETS |
|
396,682 |
|
343,548 |
| |
|
|
|
|
| NON-CURRENT
ASSETS |
|
|
|
|
| Property, plant and equipment,
net |
|
92,726 |
|
98,804 |
| Intangible assets, net |
|
5,141 |
|
6,396 |
| Land use rights, net |
|
2,713 |
|
2,754 |
| Deferred tax assets |
|
849 |
|
815 |
| Goodwill |
|
33,358 |
|
33,147 |
| Other long-term assets |
|
10,740 |
|
9,993 |
| TOTAL NON-CURRENT
ASSETS |
|
145,527 |
|
151,909 |
| |
|
|
|
|
| TOTAL
ASSETS |
$ |
542,209 |
$ |
495,457 |
| |
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
| Accounts payable |
$ |
31,044 |
$ |
28,745 |
| Other payables and accrued
expenses |
|
6,152 |
|
7,253 |
| Short-term loans |
|
24,521 |
|
9,072 |
| Notes payable |
|
51,531 |
|
24,071 |
| Income tax payable |
|
2,568 |
|
2,130 |
| Other current liabilities |
|
5,949 |
|
5,402 |
| TOTAL CURRENT
LIABILITIES |
|
121,765 |
|
76,673 |
| |
|
|
|
|
| NON-CURRENT
LIABILITIES |
|
|
|
|
| Long-term loans |
|
7,855 |
|
8,389 |
| Deferred taxes liability |
|
853 |
|
964 |
| Contingent consideration
liability |
|
1,648 |
|
2,693 |
| Other long-term
liabilities |
|
536 |
|
227 |
| TOTAL NON-CURRENT
LIABILITIES |
|
10,892 |
|
12,273 |
| |
|
|
|
|
| TOTAL
LIABILITIES |
|
132,657 |
|
88,946 |
| |
|
|
|
|
| STOCKHOLDER'S
EQUITY |
|
|
|
|
| Kandi technologies group, inc.
stockholders' equity |
|
407,172 |
|
404,126 |
| Non-controlling interests |
|
2,380 |
|
2,385 |
| TOTAL STOCKHOLDERS'
EQUITY |
|
409,552 |
|
406,511 |
| |
|
|
|
|
| TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
$ |
542,209 |
$ |
495,457 |
|
KANDI TECHNOLOGIES GROUP, INC.AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS ANDCOMPREHENSIVE INCOME
(LOSS)(UNAUDITED)(All amounts in
thousands, except for share and per share data) |
| |
|
|
Three Months Ended |
| |
|
|
September 30, 2024 |
|
September 30, 2023 |
| |
|
|
|
|
|
|
REVENUES, NET |
|
$ |
29,945 |
|
$ |
36,426 |
|
| |
|
|
|
|
|
| COST OF GOODS SOLD |
|
|
(20,571 |
) |
|
(25,507 |
) |
| |
|
|
|
|
|
| GROSS
PROFIT |
|
|
9,374 |
|
|
10,919 |
|
| |
|
|
|
|
|
| OPERATING
EXPENSE: |
|
|
|
|
|
| Research and development |
|
|
(2,283 |
) |
|
(918 |
) |
| Selling and marketing |
|
|
(3,071 |
) |
|
(4,152 |
) |
| General and
administrative |
|
|
(10,750 |
) |
|
(9,458 |
) |
| Impairment of goodwill |
|
|
- |
|
|
8 |
|
| Impairment of long-lived
assets |
|
|
- |
|
|
14 |
|
| TOTAL OPERATING
EXPENSE |
|
|
(16,104 |
) |
|
(14,506 |
) |
| |
|
|
|
|
|
| LOSS FROM
OPERATIONS |
|
|
(6,730 |
) |
|
(3,587 |
) |
| |
|
|
|
|
|
| OTHER INCOME
(EXPENSE): |
|
|
|
|
|
| Interest income |
|
|
2,948 |
|
|
1,927 |
|
| Interest expense |
|
|
(653 |
) |
|
(355 |
) |
| Change in fair value of
contingent consideration |
|
|
109 |
|
|
- |
|
| Government grants |
|
|
95 |
|
|
668 |
|
| Other income, net |
|
|
649 |
|
|
2,611 |
|
| TOTAL OTHER INCOME ,
NET |
|
|
3,148 |
|
|
4,851 |
|
| |
|
|
|
|
|
| (LOSS) INCOME BEFORE
INCOME TAXES |
|
|
(3,582 |
) |
|
1,264 |
|
| |
|
|
|
|
|
| INCOME TAX (EXPENSE)
BENEFIT |
|
|
(593 |
) |
|
12 |
|
| |
|
|
|
|
|
| NET (LOSS)
INCOME |
|
|
(4,175 |
) |
|
1,276 |
|
| |
|
|
|
|
|
| LESS: NET (LOSS) INCOME
ATTRIBUTABLE TO NON-CONTROLLING INTERESTS |
|
|
(64 |
) |
|
408 |
|
| |
|
|
|
|
|
| NET (LOSS) INCOME
ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC.
STOCKHOLDERS |
|
|
(4,111 |
) |
|
868 |
|
| |
|
|
|
|
|
| OTHER COMPREHENSIVE INCOME
(LOSS) |
|
|
|
|
|
| Foreign currency translation
adjustment |
|
|
13,082 |
|
|
(2,102 |
) |
| |
|
|
|
|
|
| COMPREHENSIVE INCOME
(LOSS) |
|
$ |
8,907 |
|
$ |
(826 |
) |
| |
|
|
|
|
|
| WEIGHTED AVERAGE SHARES
OUTSTANDING BASIC |
|
|
86,068,123 |
|
|
79,174,343 |
|
| WEIGHTED AVERAGE SHARES
OUTSTANDING DILUTED |
|
|
86,068,123 |
|
|
81,234,002 |
|
| |
|
|
|
|
|
| NET (LOSS) INCOME PER SHARE,
BASIC |
|
$ |
(0.05 |
) |
$ |
0.02 |
|
| NET (LOSS) INCOME PER SHARE,
DILUTED |
|
$ |
(0.05 |
) |
$ |
0.02 |
|
| |
|
|
|
|
|
| NET (LOSS) INCOME ATTRIBUTABLE
TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE,
BASIC |
|
$ |
(0.05 |
) |
$ |
0.01 |
|
| NET (LOSS) INCOME ATTRIBUTABLE
TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE,
DILUTED |
|
$ |
(0.05 |
) |
$ |
0.01 |
|
| |
|
|
Nine Months Ended |
| |
|
|
September 30, 2024 |
|
September 30, 2023 |
| |
|
|
|
|
|
|
REVENUES, NET |
|
$ |
89,770 |
|
$ |
95,242 |
|
| |
|
|
|
|
|
| COST OF GOODS SOLD |
|
|
(61,429 |
) |
|
(62,559 |
) |
| |
|
|
|
|
|
| GROSS
PROFIT |
|
|
28,341 |
|
|
32,683 |
|
| |
|
|
|
|
|
| OPERATING
EXPENSE: |
|
|
|
|
|
| Research and development |
|
|
(3,969 |
) |
|
(2,671 |
) |
| Selling and marketing |
|
|
(10,094 |
) |
|
(8,760 |
) |
| General and
administrative |
|
|
(25,362 |
) |
|
(25,856 |
) |
| Impairment of goodwill |
|
|
- |
|
|
(500 |
) |
| Impairment of long-lived
assets |
|
|
- |
|
|
(948 |
) |
| TOTAL OPERATING
EXPENSE |
|
|
(39,425 |
) |
|
(38,735 |
) |
| |
|
|
|
|
|
| LOSS FROM
OPERATIONS |
|
|
(11,084 |
) |
|
(6,052 |
) |
| |
|
|
|
|
|
| OTHER INCOME
(EXPENSE): |
|
|
|
|
|
| Interest income |
|
|
6,581 |
|
|
5,982 |
|
| Interest expense |
|
|
(1,618 |
) |
|
(723 |
) |
| Change in fair value of
contingent consideration |
|
|
1,045 |
|
|
1,803 |
|
| Government grants |
|
|
1,146 |
|
|
1,478 |
|
| Other income, net |
|
|
3,174 |
|
|
3,685 |
|
| TOTAL OTHER INCOME ,
NET |
|
|
10,328 |
|
|
12,225 |
|
| |
|
|
|
|
|
| (LOSS) INCOME BEFORE
INCOME TAXES |
|
|
(756 |
) |
|
6,173 |
|
| |
|
|
|
|
|
| INCOME TAX (EXPENSE)
BENEFIT |
|
|
(1,041 |
) |
|
86 |
|
| |
|
|
|
|
|
| NET (LOSS)
INCOME |
|
|
(1,797 |
) |
|
6,259 |
|
| |
|
|
|
|
|
| LESS: NET (LOSS) INCOME
ATTRIBUTABLE TO NON-CONTROLLING INTERESTS |
|
|
(1 |
) |
|
1,691 |
|
| |
|
|
|
|
|
| NET (LOSS) INCOME
ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC.
STOCKHOLDERS |
|
|
(1,796 |
) |
|
4,568 |
|
| |
|
|
|
|
|
| OTHER COMPREHENSIVE INCOME
(LOSS) |
|
|
|
|
|
| Foreign currency translation
adjustment |
|
|
3,260 |
|
|
(19,799 |
) |
| |
|
|
|
|
|
| COMPREHENSIVE INCOME
(LOSS) |
|
$ |
1,463 |
|
$ |
(13,540 |
) |
| |
|
|
|
|
|
| WEIGHTED AVERAGE SHARES
OUTSTANDING BASIC |
|
|
86,463,327 |
|
|
75,931,247 |
|
| WEIGHTED AVERAGE SHARES
OUTSTANDING DILUTED |
|
|
86,463,327 |
|
|
77,645,533 |
|
| |
|
|
|
|
|
| NET (LOSS) INCOME PER SHARE,
BASIC |
|
$ |
(0.02 |
) |
$ |
0.08 |
|
| NET (LOSS) INCOME PER SHARE,
DILUTED |
|
$ |
(0.02 |
) |
$ |
0.08 |
|
| |
|
|
|
|
|
| NET (LOSS) INCOME ATTRIBUTABLE
TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE,
BASIC |
|
$ |
(0.02 |
) |
$ |
0.06 |
|
| NET (LOSS) INCOME ATTRIBUTABLE
TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE,
DILUTED |
|
$ |
(0.02 |
) |
$ |
0.06 |
|
Kandi Technolgies (NASDAQ:KNDI)
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