- Gross margin further expansion to 45.2%, up from 31.7% in prior-year period
- Maintains strong financial position with $256.7M in cash, restricted cash, and time deposits
JINHUA, China, Aug. 19, 2025 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. ("Kandi" or the "Company") (NASDAQ GS: KNDI), a long renowned leader in all-electric personal transportation and utility vehicles, today announced its unaudited financial results for the six months ended June 30, 2025.
First Half 2025 Financial Highlights
- Total net revenues were $36.3 million, compared with $59.8 million for the same period of 2024.
- Gross margin increased to 45.2% from 31.7% for the same period of 2024.
- Net income was $1.7 million, compared with $2.4 million for the same period of 2024.
- As of June 30, 2025, the Company had cash and cash equivalents, restricted cash, and certificates of deposit totaling $256.7 million, compared with $126.3 million as of December 31, 2024.
Recent Development
- Fast-track entry into the embodied intelligence sector through strategic cooperation with Deep Robotics, co-developing intelligent golf caddy robots and security patrol quadruped robots for the North American market.
- Strengthened leadership in battery swap infrastructure as Kandi's subsidiary, China Battery Exchange (Zhejiang) Technology Co., Ltd., became a supplier and secured its first heavy-truck battery swap station equipment order under Contemporary Amperex Technology Co., Limited's "Ten Thousand Station Plan."
Management Remarks
Mr. Feng Chen, CEO of Kandi, commented: "In the first half of 2025, the global macroeconomic landscape remained challenging, exerting pressure on our operations. Despite these headwind, we continued to strengthen our core off-road vehicle business through streamlined inventory management, enhanced manufacturing efficiency, and optimized sales network. These initiatives drove a substantial improvement in gross margin to 45.2%, compared with 31.7% in the same period of 2024. At the same time, we drove our expansion into high-potential technology sectors such as embodied intelligence and battery swap infrastructure, securing multiple strategic partnerships that established a strong foundation for sustainable growth. Looking ahead, supported by robust cash reserves, steadily improving operational efficiency, and myriad technological advantages, we will continue to increase R&D investment and refine our supply chain, while driving forward our dual-engine strategy of 'stable cash flow business + growth incubation business' to capture emerging opportunities and deliver long-term value for our shareholders."
First Half 2025 Financial Results
REVENUES
Net revenues were $36.3 million, a decrease of 39.3% from $59.8 million for the same period of 2024. This decrease was mainly due to a decrease in sales of off-road vehicles and EV products.
COST OF GOODS SOLD
Cost of goods sold was $19.9 million, a decrease of 51.3% from $40.9 million for the same period of 2024. The decrease was primarily due to the corresponding decrease in sales.
GROSS PROFIT
Gross profit was $16.4 million, compared with $19.0 million for the same period of 2024. Gross margin was 45.2%, compared with 31.7% for the same period of 2024. The improvement in gross margin was primarily driven by changes in product mix and regional revenue distribution, as well as increased sales of impaired inventory compared with the same period last year.
OPERATING EXPENSES
Total operating expenses were $18.3 million, a decrease of 21.4% from $23.3 million for the same period of 2024.
Research and development expenses were $2.5 million, an increase of 48.5% from $1.7 million for the same period of 2024. The increase was mainly due to a research and development project for battery products conducted in the first half of 2025.
Selling and marketing expenses were $4.5 million, a decrease of 35.8% from $7.0 million for the same period of 2024. The decrease was in line with the scale of decrease in revenue.
General and administrative expenses were $11.3 million, a decrease of 22.6% from $14.6 million for the same period of 2024. The decrease was mainly due to reduced depreciation expenses driven by a one-time asset impairment recorded at the end of 2024, and reduced stock compensation expenses compared with the same period last year.
LOSS FROM OPERATIONS
Loss from operations was $1.9 million, a decrease of 55.6% from $4.4 million for the same period of 2024.
NET INCOME
Net income was $1.7 million, a decrease of 28.7% from $2.4 million for the same period of 2024.
Basic and diluted net income attributable to the Company's shareholders per share were $0.02, compared with $0.03 for the same period of 2024.
BALANCE SHEET AND CASH FLOW
As of June 30, 2025, the Company had cash and cash equivalents, restricted cash, and certificates of deposit totaling $256.7 million, compared with $126.3 million as of December 31, 2024.
Conference Call
The Company's management will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on August 19, 2025, or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the first half of 2025.
The dial-in and webcast 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=1730899&tp_key=39766435ca
A live and archived webcast of the conference call will also be available on the Company's investor relations website at ir.kandigroup.com.
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) is a leader in the research, development, and manufacturing of all-electric personal transportation and utility vehicles. Headquartered in Jinhua, China, the Company's primary focus is on off-road mobility solutions, with a strategic emphasis for the North American market, while actively pursuing opportunities in other related emerging high-tech areas. Through its subsidiaries, Kandi Technologies leverages its robust manufacturing capabilities and technological expertise to deliver innovative products for a wide range of commercial and consumer applications.
For more information, please visit ir.kandigroup.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 applicable securities laws, the Company does not assume a duty to update these forward-looking statements.
For investor and media inquiries, please contact:
Kandi Technologies Group, Inc.
Kewa Luo
Email: IR@kandigroup.com
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
Email: Kandi@thepiacentegroup.com
Piacente Financial Communications
Hui Fan
Tel: +86-10-6508-0677
Email: Kandi@thepiacentegroup.com
| KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (All amounts in thousands) | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| (Unaudited) | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 32,247 | $ | 37,308 | ||||
| Restricted cash | 71,040 | 83,530 | ||||||
| Certificate of deposit | 153,486 | 5,481 | ||||||
| Accounts receivable | 10,815 | 26,463 | ||||||
| Inventories | 45,216 | 51,268 | ||||||
| Notes receivable | - | 346 | ||||||
| Other receivables | 6,160 | 144,721 | ||||||
| Prepayments and prepaid expense | 4,500 | 4,968 | ||||||
| Advances to suppliers | 741 | 562 | ||||||
| TOTAL CURRENT ASSETS | 324,205 | 354,647 | ||||||
| NON-CURRENT ASSETS | ||||||||
| Property, plant and equipment, net | 62,381 | 63,504 | ||||||
| Intangible assets, net | 3,285 | 3,893 | ||||||
| Land use rights, net | 2,592 | 2,587 | ||||||
| Deferred tax assets | 6,492 | 6,497 | ||||||
| Long-term investment | 1,956 | 1,413 | ||||||
| Goodwill | 31,649 | 31,182 | ||||||
| Other long-term assets | 10,787 | 10,173 | ||||||
| TOTAL NON-CURRENT ASSETS | 119,142 | 119,249 | ||||||
| TOTAL ASSETS | $ | 443,347 | $ | 473,896 | ||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 14,388 | $ | 25,476 | ||||
| Other payables and accrued expenses | 5,051 | 8,544 | ||||||
| Short-term loans | 37,385 | 37,529 | ||||||
| Notes payable | 23,536 | 41,621 | ||||||
| Income tax payable | 709 | 1,431 | ||||||
| Advance receipts | 109 | - | ||||||
| Other current liabilities | 5,217 | 5,795 | ||||||
| TOTAL CURRENT LIABILITIES | 86,395 | 120,396 | ||||||
| NON-CURRENT LIABILITIES | ||||||||
| Long-term loans | - | 5,707 | ||||||
| Deferred taxes liability | 547 | 525 | ||||||
| Other long-term liabilities | 453 | 641 | ||||||
| TOTAL NON-CURRENT LIABILITIES | 1,000 | 6,873 | ||||||
| TOTAL LIABILITIES | 87,395 | 127,269 | ||||||
| STOCKHOLDER'S EQUITY | ||||||||
| Kandi technologies group, inc. stockholders' equity | 354,050 | 344,697 | ||||||
| Non-controlling interests | 1,902 | 1,930 | ||||||
| TOTAL STOCKHOLDERS' EQUITY | 355,952 | 346,627 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 443,347 | $ | 473,896 | ||||
| KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (All amounts in thousands, except for share and per share data) | ||||||||
| Six Months Ended | ||||||||
| June 30, 2025 | June 30, 2024 | |||||||
| REVENUES, NET | $ | 36,291 | $ | 59,825 | ||||
| COST OF GOODS SOLD | (19,904 | ) | (40,858 | ) | ||||
| GROSS PROFIT | 16,387 | 18,967 | ||||||
| OPERATING EXPENSE: | ||||||||
| Research and development | (2,504 | ) | (1,685 | ) | ||||
| Selling and marketing | (4,505 | ) | (7,023 | ) | ||||
| General and administrative | (11,310 | ) | (14,612 | ) | ||||
| TOTAL OPERATING EXPENSE | (18,319 | ) | (23,320 | ) | ||||
| LOSS FROM OPERATIONS | (1,932 | ) | (4,353 | ) | ||||
| OTHER INCOME (EXPENSE): | ||||||||
| Interest income | 4,334 | 3,633 | ||||||
| Interest expense | (1,100 | ) | (965 | ) | ||||
| Change in fair value of contingent consideration | - | 936 | ||||||
| Government grants | 1,099 | 1,051 | ||||||
| Other (loss) income, net | (853 | ) | 2,525 | |||||
| TOTAL OTHER INCOME, NET | 3,480 | 7,180 | ||||||
| INCOME BEFORE INCOME TAXES | 1,548 | 2,827 | ||||||
| INCOME TAX BENEFIT (EXPENSE) | 147 | (449 | ) | |||||
| NET INCOME | 1,695 | 2,378 | ||||||
| LESS: NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | (29 | ) | 63 | |||||
| NET INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS | 1,724 | 2,315 | ||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||
| Foreign currency translation adjustment | 6,148 | (9,823 | ) | |||||
| COMPREHENSIVE INCOME (LOSS) | $ | 7,843 | $ | (7,445 | ) | |||
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 84,805,991 | 86,663,100 | ||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 84,805,991 | 87,097,274 | ||||||
| NET INCOME PER SHARE, BASIC | $ | 0.02 | $ | 0.03 | ||||
| NET INCOME PER SHARE, DILUTED | $ | 0.02 | $ | 0.03 | ||||
| NET INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE, BASIC | $ | 0.02 | $ | 0.03 | ||||
| NET INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE, DILUTED | $ | 0.02 | $ | 0.03 | ||||
