-Q4 Revenue Increases 131.2% YoY to $26.3 Million-
-Full Year Revenue Increases 60.6% YoY to $64.5 Million-
-Full Year Operating Income Increases 74.9% YoY to $5.3 Million-
-EV sales rose 204.4% YoY to $19.0 Million-
JINHUA, China, April 1, 2013 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the 'Company' or 'Kandi') (Nasdaq:KNDI), a leading Chinese manufacturer and developer of pure electric vehicles (EVs) and all-terrain vehicles (ATVs), today announced its financial results for the fourth quarter and full year ending December 31, 2012.
Full Year 2012 Highlights
- Revenues grew 60.6% to $64.5 million from $40.2 million in 2011
- ATV sales increased 32.0% to 6.4 million
- Go-kart sales increased 34.3% to 30.8 million
- EV sales significantly increased 204.4% or $12.8 million to $19.0 million and the Company sold 3,915 units in the full year
- Refitted car sales increased 70.5% to $3.2 million
- Gross profit for the full year of 2012 increased 39.9% to $12.9 million compared to $9.2 million in 2011
- Income from operations grew 74.9% to $5.3 million from $3.0 million in 2011
- GAAP net income decreased 33.6% to $6.0 million from $9.1 million in 2011 due to a change in the fair value of financial derivatives, higher income tax, and an increase in general and administrative expenses, research and development expenses, and interest expenses in 2012
- Non-GAAP net income* increased 3.2% to $4.2 million from $4.0 million from the previous year
- Cash, cash equivalents and restricted cash totaled $28.0 million at year end, a 213.2% increase from $8.9 million at the end of 2011
- Working capital surplus was $35.9 million at the end of December 31, 2012, an increase from a working capital surplus of $17.5 million as of December 31, 2011
Fourth Quarter 2012 Highlights
- Revenues rose significantly: 131.2% to $26.3 million from $11.4 million in the same period last year
- Gross profit increased 82.8% to $4.5 million compared to $2.5 million in the fourth quarter of 2011
- GAAP net income increased to $2.2 million from a net loss of $829,831 for the same period of last year
"We are very pleased about the fourth quarter of 2012 and full year financial results. While our legacy business experienced solid growth, EV sales have achieved a significant growth in both unit sales and revenue contributions." Mr. Xiaoming Hu, Chief Executive Officer and Chairman of Kandi Technologies commented, "2012 was a breakout year for Kandi, we not only launched China's largest EV leasing program in Hangzhou, but also have negotiated new EV expansion plans in the Shandong and Hainan markets. Kandi is now even better prepared for the increasing EV demand from Chinese consumers and well positioned to benefit from further government initiatives to promote electric vehicles in China."
"We remain confident about the future growth of our EV and legacy business. With our recent joint venture partnership with Geely Auto, we expect to become a more fully integrated provider of pure electric vehicles to escalate our market position," concluded by Mr. Hu.
*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.
| KANDI TECHNOLOGIES GROUP, INC. | ||
| AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||
| FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 | ||
| 2012 | 2011 | |
| REVENUES, NET | $64,513,670 | $40,177,148 |
| COST OF GOODS SOLD | -51,620,280 | -30,964,173 |
| GROSS PROFIT | 12,893,390 | 9,212,975 |
| Research and development | -2,877,283 | -2,304,373 |
| Selling and marketing | -455,983 | -414,255 |
| General and administrative | -4,250,832 | -3,458,388 |
| INCOME FROM CONTINUING OPERATIONS | 5,309,292 | 3,035,959 |
| Interest income | 2,658,104 | 2,200,678 |
| Interest (expense) | -2,775,891 | -1,945,260 |
| Government grants | 132,139 | 298,072 |
| Investment income (expense) in trading security | -- | 9,653 |
| Other, net | 332,936 | 717,495 |
| Change in fair value of financial instruments | 1,986,063 | 5,401,929 |
| Investment (loss) in associated companies | -69,429 | -52,696 |
| INCOME (LOSS) BEFORE INCOME TAXES | 7,573,214 | 9,665,830 |
| INCOME TAX EXPENSE | -1,523,735 | -551,060 |
| NET INCOME | 6,049,479 | 9,114,770 |
| OTHER COMPREHENSIVE INCOME | ||
| Foreign currency translation | 424,623 | 1,816,639 |
| COMPREHENSIVE INCOME | $6,474,102 | $10,931,409 |
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 29,439,328 | 27,438,725 |
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 29,677,325 | 28,735,748 |
| NET INCOME PER SHARE, BASIC | $0.21 | $0.33 |
| NET INCOME PER SHARE, DILUTED | $0.20 | $0.32 |
| See notes to consolidated financial statements | ||
| KANDI TECHNOLOGIES GROUP, INC. | ||
| AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 | ||
| ASSETS | ||
| December 31, | December 31, | |
| 2012 | 2011 | |
| CURRENT ASSETS | ||
| Cash and cash equivalents | $12,135,096 | $2,294,352 |
| Restricted cash | 15,835,364 | 6,634,989 |
| Accounts receivable | 33,557,534 | 12,932,776 |
| Inventories (net of reserve for slow moving inventory of $56,248 and $72,487 as of December 31, 2012 and 2011 respectively | 7,630,715 | 6,674,467 |
| Notes receivable | 9,562,429 | 37,879,243 |
| Other receivables | 501,448 | 2,438,917 |
| Prepayments and prepaid expenses | 563,861 | 185,037 |
| Due from employees | 40,936 | 79,857 |
| Advances to suppliers | 4,769,825 | 852,638 |
| Deposit for acquisition | 24,397,967 | -- |
| Total Current Assets | 108,995,175 | 69,972,276 |
| LONG-TERM ASSETS | ||
| Plant and equipment, net | 35,725,740 | 20,981,893 |
| Land use rights, net | 14,337,691 | 10,992,769 |
| Construction in progress | -- | 10,007,601 |
| Deferred taxes | 695 | 89,998 |
| Investment in associated companies | 161,507 | 229,213 |
| Goodwill | 322,591 | -- |
| Intangible assets | 741,591 | -- |
| Total Long-Term Assets | 51,289,815 | 42,301,474 |
| TOTAL ASSETS | $160,284,990 | $112,273,750 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| December 31, | December 31, | |
| 2012 | 2011 | |
| CURRENT LIABILITIES | ||
| Accounts payable | $8,668,478 | $5,061,069 |
| Other payables and accrued expenses | 3,092,045 | 3,137,983 |
| Short-term bank loans | 32,615,063 | 36,372,492 |
| Customer deposits | 292,389 | 1,025,357 |
| Notes payable, net of discount of $0 and $71 as of December 31, 2012 and 2011 respectively | 25,332,088 | 5,847,552 |
| Income tax payable | 680,253 | 153,730 |
| Due to employees | 7,132 | 9,455 |
| Due to related party | 841,251 | 841,251 |
| Deferred taxes | 55,166 | 56,362 |
| Financial derivate - liability | 1,513,013 | 213 |
| Total Current Liabilities | 73,096,878 | 52,505,464 |
| LONG-TERM LIABILITIES | ||
| Note payable, net of discount of $0 and $0 as of December 31, 2012 and 2011 respectively | -- | -- |
| Bond payable | 12,666,044 | -- |
| Financial derivatives - liability | -- | 3,919,411 |
| Total Long-Term Liabilities | 12,666,044 | 3,919,411 |
| TOTAL LIABILITIES | 85,762,922 | 56,424,875 |
| STOCKHOLDERS' EQUITY | ||
| Common stock, $0.001 par value; 100,000,000 shares authorized; 31,696,794 and 27,445,600 shares issued and outstanding at December 31, 2012 and December 31, 2011, respectively | 31,697 | 27,446 |
| Additional paid-in capital | 43,728,218 | 31,533,378 |
| Retained earnings (the restricted portion is $2,831,005 and $1,940,832 at December 31, 2012 and December 31, 2011, respectively) | 25,259,809 | 19,210,330 |
| Accumulated other comprehensive income | 5,502,344 | 5,077,721 |
| TOTAL STOCKHOLDERS' EQUITY | 74,522,068 | 55,848,875 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $160,284,990 | $112,273,750 |
| See notes to consolidated financial statements | ||
| KANDI TECHNOLOGIES GROUP, INC. | ||
| AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF CASH FLOW | ||
| FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 | ||
| 2012 | 2011 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net income | $6,049,479 | $9,114,770 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 4,978,626 | 4,696,848 |
| Asset impairments | 465,199 | -- |
| Deferred taxes | 92,521 | 207,327 |
| Change in value of financial instruments | -1,986,063 | -5,401,929 |
| Loss in investment (including investment in associated company) | 69,429 | 52,696 |
| Notes and warrant issuance payments | -- | -- |
| Option cost | 19,053 | 252,632 |
| Changes in operating assets and liabilities, net of effects of acquisition: | ||
| (Increase) Decrease In: | ||
| Accounts receivable | -20,513,099 | 4,647,184 |
| Inventories | -904,355 | -550,024 |
| Other receivables | 1,955,055 | -1,566,603 |
| Due from employees | 37,117 | -45,096 |
| Prepayments and prepaid expenses | -4,285,489 | -730,321 |
| Marketable equity securities (trading) | -- | 307,098 |
| Increase (Decrease) In: | ||
| Accounts payable | 3,566,354 | -1,614,496 |
| Other payables and accrued liabilities | -50,333 | 2,326,656 |
| Customer deposits | -740,419 | 924,241 |
| Income tax payable | 525,030 | 21,087 |
| Net cash (used in) provided by operating activities | -10,721,895 | 12,642,070 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Purchases of plant and equipment | -19,150,867 | -646,143 |
| Change of construction in progress | 10,078,637 | -9,839,388 |
| Deposit for acquisition | -24,383,529 | -- |
| Issuance of notes receivable | -1,011,821 | -22,992,866 |
| Repayments of notes receivable | 29,603,171 | 11,147,503 |
| Cash acquired in acquisition | 112,551 | -- |
| Net cash provided by (used in) investing activities | -4,751,858 | -22,330,894 |
| Restricted cash | -9,143,907 | 11,246,288 |
| Proceeds from short-term bank loans | 41,504,215 | 48,891,560 |
| Repayments of short-term bank loans | -45,539,128 | -42,171,867 |
| Proceeds from notes payable | 40,491,531 | 35,562,160 |
| Repayments of notes payable | -21,063,559 | -49,260,448 |
| Proceeds from bond payable | 12,658,548 | -- |
| Option exercise & other financing | 1,258,231 | 65,544 |
| Warrant exercise | 1,672,739 | -- |
| Common stock issued, net of cost of capital | 3,784,149 | -- |
| Net cash provided by financing activities | 25,622,819 | 4,333,237 |
| NET DECREASE IN CASH AND CASH EQUIVALENTS | 10,149,066 | -5,355,587 |
| Effect of exchange rate changes on cash | -308,322 | -104,227 |
| Cash and cash equivalents at beginning of year | 2,294,352 | 7,754,166 |
| CASH AND CASH EQUIVALENTS AT END OF YEAR | $12,135,096 | $2,294,352 |
| SUPPLEMENTARY CASH FLOW INFORMATION | ||
| Income taxes paid | $998,706 | $529,973 |
| Interest paid | $2,570,691 | $2,509,808 |
| Issuance of Common stock for acquisition | $8,616,416 | $-- |
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (Nasdaq:KNDI) is a manufacturer and exporter of a variety of vehicles in China, making it a world leader in the production of popular off-road vehicles (ORVs). It also ranks among the leading manufacturers in China of all-terrain vehicles (ATVs), specialized utility vehicles (UTVs), and a recently introduced second-generation high mileage, two-seat three-wheeled motorcycle. Another major company focus has been on the manufacture and sale of the COCO electric vehicle (EV), a highly economical, beautifully designed, all-electric super mini-car for neighborhood driving and commuting. The convertible and hardtop models of the COCO EV are available in the United States and other countries, while the Chinese government has approved the sale of Kandi EVs in China since 2010. 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.