-Q1 Revenue Increased 174.0% YoY to $40.2 Million-
-EV Sales Rose 384.5% YoY to $8.4 Million-
JINHUA, China, May 12, 2014 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the "Company" or "Kandi") (Nasdaq:KNDI), today reported its financial results for the first quarter ended March 31, 2014.
For the three months ended March 31, 2014:
- Revenues grew 174.0% to $40.2 million from $14.7 million in the first quarter of 2013
- Electric Vehicle ("EV") products revenues increased significantly by 384.5% to $8.4 million from $1.7 million in the first quarter of 2013
- Revenue for EV Parts including battery packs was $25.0 million in the first quarter of 2014. The Company started this business in the first quarter of 2014.
- All-terrain Vehicle ("ATV") sales grew slightly to $3.3 million from $2.5 million in the first quarter of 2013
- Gross profit grew 44.1% to $4.9 million from $3.4 million in the first quarter of 2013
- The income for the JV Company (Kandi Electric Vehicles Group Co., Ltd., a joint venture company established by the Company's wholly owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. with Shanghai Maple Guorun Automobile Co., Ltd. ("Shanghai Maple"), a 99%-owned subsidiary of Geely Automobile Holdings Ltd.) was $1.7 million and the profit for Kandi was $0.8 million in the first quarter of 2014
- GAAP net loss for the first quarter was $14.1 million compared to a net income of $2.2 million in the same period last year due to changes relating to the fair value of financial derivatives resulted from the relatively high stock price during the first quarter period, stock awards to management, and increases in our general & administrative expenses
- Non-GAAP net income*, excluding the effects of the stock award expense and the change of the fair value of financial derivatives, was $1.6 million, an increase of 30.4% compared with $1.3 million in the first quarter of 2013
- Cash, cash equivalents totaled $20.5 million for the first quarter, a 60.2% increase from $12.8 million at the end of 2013
*Non-GAAP net income in this context means the net income excluding option-related expenses, stock award expenses, and the effects caused by the change of fair value of financial derivatives. We furnish non-GAAP information because we believe it allows our investors to obtain a clearer understanding of our operations.
Mr. Xiaoming Hu, Chairman and CEO of the Company commented, "During the first quarter, Kandi has once again experienced the significant growth in EV related business sales. We are satisfied with the financial results we have achieved in the slowest quarter of the year. The Public EV Sharing Project in Hangzhou is making modest progress and several other cities have approached us to discuss implementation of the project in their cities. We are very confident about the continuous high growth of our EV business. Through our partnership with Geely and our advanced production capabilities, we soon expect to become the leading fully integrated provider of pure EVs in China."
| KANDI TECHNOLOGIES GROUP, INC. | ||
| AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) | ||
| Three Months Ended | ||
| March 31, 2014 | March 31, 2013 | |
| REVENUES, NET | $ 40,171,304 | $ 14,662,521 |
| COST OF GOODS SOLD | (35,310,895) | (11,290,490) |
| GROSS PROFIT | 4,860,409 | 3,372,031 |
| Research and development | (1,172,257) | (689,665) |
| Selling and marketing | (71,257) | (89,614) |
| General and administrative | (6,470,766) | (692,964) |
| (LOSS) INCOME FROM CONTINUING OPERATIONS | (2,853,871) | 1,899,788 |
| Interest (expense) income, net | (471,180) | (670,208) |
| Change in fair value of financial instruments | (12,314,171) | 990,395 |
| Government grants | -- | -- |
| Share of (loss) in associated companies | (15,805) | (14,023) |
| Share of profit after tax of JV | 1,728,356 | -- |
| Other income, net | 59,580 | 122,365 |
| (LOSS) INCOME BEFORE INCOME TAXES | (13,867,091) | 2,328,317 |
| INCOME TAX EXPENSE | (219,069) | (91,444) |
| NET (LOSS) INCOME | (14,086,160) | 2,236,873 |
| OTHER COMPREHENSIVE INCOME | ||
| Foreign currency translation | (1,211,116) | 584,915 |
| COMPREHENSIVE INCOME (LOSS) | $ (15,297,276) | $ 2,821,788 |
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 39,597,785 | 32,298,832 |
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 39,597,785 | 32,539,339 |
| NET (LOSS) INCOME PER SHARE, BASIC | $ (0.36) | $ 0.07 |
| NET (LOSS) INCOME PER SHARE, DILUTED | $ (0.36) | $ 0.07 |
| KANDI TECHNOLOGIES GROUP, INC. | ||
| AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| ASSETS | ||
| March 31, | December 31, | |
| 2014 | 2013 | |
| (Unaudited) | ||
| CURRENT ASSETS | ||
| Cash and cash equivalents | $ 20,498,275 | $ 12,762,369 |
| Restricted cash | -- | 1,636 |
| Accounts receivable | 22,674,057 | 31,370,862 |
| Inventories (net of provision for slow moving inventory of $349,850 and $352,734 as of March 31, 2014 and December 31, 2013, respectively | 13,646,998 | 9,187,714 |
| Notes receivable | 35,078,977 | 13,794,094 |
| Other receivables | 705,771 | 556,904 |
| Prepayments and prepaid expenses | 461,395 | 505,513 |
| Due from employees | 42,759 | 34,272 |
| Advances to suppliers | 16,470,855 | 8,867,074 |
| Amount due from JV Company, net | 21,625,758 | 2,917,592 |
| Deferred tax | 252,684 | 13,706 |
| Total Current Assets | 131,457,529 | 80,011,736 |
| LONG-TERM ASSETS | ||
| Plant and equipment, net | 27,945,044 | 29,333,516 |
| Land use rights, net | 14,246,146 | 14,453,191 |
| Construction in progress | 16,222 | 16,356 |
| Deferred taxes | -- | 81,076 |
| Investment in associated company | 80,356 | 96,838 |
| Investment in JV Company | 80,399,179 | 79,331,930 |
| Goodwill | 322,591 | 322,591 |
| Intangible assets | 638,972 | 659,496 |
| Total Long-Term Assets | 123,648,510 | 124,294,994 |
| TOTAL ASSETS | $ 255,106,039 | $ 204,306,730 |
| KANDI TECHNOLOGIES GROUP, INC. | ||
| AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| March 31, | December 31, | |
| 2014 | 2013 | |
| (Unaudited) | ||
| CURRENT LIABILITIES | ||
| Accounts payable | $ 44,089,700 | $ 22,843,143 |
| Other payables and accrued expenses | 3,332,258 | 2,422,613 |
| Short-term bank loans | 33,742,132 | 34,020,281 |
| Customer deposits | 135,398 | 44,404 |
| Notes payable | 14,599,961 | 16,683,023 |
| Income tax payable | 542,224 | 1,362,828 |
| Due to employees | 9,645 | 10,297 |
| Due to related party | -- | -- |
| Deferred taxes | 21,626 | -- |
| Financial derivate - liability | 21,332,440 | 9,256,827 |
| Total Current Liabilities | 117,805,384 | 86,643,416 |
| LONG-TERM LIABILITIES | ||
| Deferred tax | 1,194,424 | 1,009,477 |
| Bond payable | 12,977,743 | 13,084,724 |
| Financial derivatives - liability | 4,014,614 | 15,042,994 |
| Total Long-Term Liabilities | 18,186,781 | 29,137,195 |
| TOTAL LIABILITIES | 135,992,165 | 115,780,611 |
| STOCKHOLDERS' EQUITY | ||
| Common stock, $0.001 par value; 100,000,000 shares authorized; 40,721,321 and 37,012,904 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 40,721 | 37,013 |
| Additional paid-in capital | 122,636,097 | 76,754,774 |
| Retained earnings (the restricted portion is $3,807,551 and $3,807,551 at March 31, 2014 and December 31, 2013, respectively) | (9,967,074) | 4,119,086 |
| Accumulated other comprehensive income | 6,404,130 | 7,615,246 |
| TOTAL STOCKHOLDERS' EQUITY | 119,113,874 | 88,526,119 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 255,106,039 | $ 204,306,730 |
| KANDI TECHNOLOGIES GROUP, INC. | ||
| AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| Three Months Ended March 31 | ||
| 2014 | 2013 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net (loss) income | $ (14,086,160) | $ 2,236,873 |
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
| Depreciation and amortization | 1,386,527 | 2,109,977 |
| Deferred taxes | 44,801 | (144,911) |
| Change of derivative instrument's fair value | 12,314,171 | (990,395) |
| Loss in investment in associated company | 15,805 | 14,023 |
| Share of (profit) after tax of JV | (1,728,356) | -- |
| Changes in operating assets and liabilities: | ||
| (Increase) Decrease In: | ||
| Accounts receivable | 8,501,760 | (4,440,829) |
| Inventories | (4,567,411) | (2,901,362) |
| Other receivables and prepaid expenses | (154,488) | (88,166) |
| Due from employees | (9,402) | (2,418) |
| Prepayments and prepaid expenses | (7,691,861) | 2,717,021 |
| Amount due from JV | (18,868,380) | -- |
| Increase (Decrease) In: | ||
| Accounts payable | 21,589,347 | 1,990,665 |
| Other payables and accrued liabilities | 930,528 | (85,177) |
| Customer deposits | 92,022 | (268,344) |
| Income tax payable | (815,354) | (425,109) |
| Net cash (used in) provided by operating activities | $ (3,046,451) | $ (278,152) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Purchases of plant and equipment | (119,476) | (8,698) |
| Issuance of notes receivable | (21,553,430) | (1,940,690) |
| Deposit for acquisition | -- | (14,103,172) |
| Net cash provided by (used in) investing activities | $ (21,672,906) | $ (16,052,560) |
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 one of the world's largest manufacturers 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. Kandi routinely posts important information on its website.
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.