Kandi Technologies Reports Full Year 2020 Financial Results

                                                                                            - Full year revenue of $76.9 million

                                                              - Electric Scooters, Electric Self-Balancing Scooters and associated partssales was $5.8 m, up 160.5% yoy

                                                                                 - Full year operating income of $0.8 million, stable with 2019

                                                                                      - Year-end working capital surplus of $223 million

JINHUA, CHINA-- (March 30, 2021) - Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the full year ended December 31, 2020.

Full Year 2020 Highlights

• Total revenue was $76.9 million, compared to $135.7 million in 2019.

• EV parts sales were $40.6 million, compared to $110.7 million in 2019.

• Off-road vehicles sales increased by 31.1% to $29.8 million, compared to $22.7 million in 2019.

• EV product sales were $0.7 million, compared to $0.1 million in 2019.

• Electric Scooters, Electric Self-Balancing Scooters and associated parts sales increased by 160.5% to $5.8 million, compared with $2.2 million in 2019.

• Gross margin was 17.5%, compared to 18.7% in 2019.

• Operating income was $0.8 million, compared to $0.9 million in 2019.

• Net loss was $10.4million, or $0.19 loss per fully diluted share, compared to a net loss of $7.2 million, or $0.14 loss per fully diluted sharein 2019.

• As of December 31, 2020, working capital was $223.3 million; cash, cash equivalents, and restricted cash totaled $142.5million.

• Tworegistered direct offerings were completed with $160 million raised in November 2020.

Mr. Hu Xiaoming, Chairman and CEO of Kandi commented: “The lockdownsand closures of stores and facilities around the world, caused by the spread of COVID-19, challengedevery corner of the economy in 2020. Although our operations in China fully resumed in early March of 2020, sales of EV parts, one of our primary revenue sources, wereseverely impacted by several waves of the pandemic. On the positive side, this challenge resulted inrelentless effort and commitment from our management and employees to explore other market opportunities that leverage our expertise.  We decided to pursue product innovation in Electric Scooters and Electric Self-Balancing Scooters, which have a global market of tens of millions of units sold each year. We pursued these opportunities by expanding production of intelligent transportation products that exploit our advantages in electric motors and battery packs. This resulted in revenue from Electric Scooters, Electric Self-Balancing Scooters and associated parts increasing by 160.5% in 2020, offsetting a 63.3% decline in revenue from EV parts.”

Hu continued, “During 2020 we achievedthree major strategic milestones despite unfavorable market conditions.  

First, we smoothly executed the real estate repurchase agreement with Jinhua Economic and Technological Development Zone, a key element of our Jinhua facility relocation.The local government agreed to pay usapproximately RMB525 million, or $80 million, in three installments. We received the first two installments, totaling RMB 363 million, or $55 million.The final payment of RMB 162 million, or $25 million, will be received when we demolishall the current factory buildings on this landand move to ournew facility.  We are nearing the end of the relocation process and have almost completed the move into our new factory.

“Our second milestone was the successful trial ofthe ‘300,000 government-accredited ride-sharing vehicles within 5 years’ programinitiated by us.  Zhejiang Ruiheng Technology Co., Ltd plans to deliver over 3,000 government compliant EVs in 2021, and gradual delivery is underway. All those EVs feature our battery swapping technology, which is recognized by the central government as one of the three approved charging methods in China.Driven bythe tailwinds of Chinese Governmentpolicy regarding battery exchange, in 2020we moved forward in many ways. For example, we signed an agreement with the Zhejiang State Grid Electric Vehicle Service Company in October 2020 to strategically incorporate battery exchange into pure EVs. We believe this program can drive the production and sales of our EV parts and battery swap equipment, and therefore drive the growth in our pure EV business.”

Regarding the U.S. market, Hu commented, “In August 2020 we successfully held a virtual launch event to introduce our K23 and K27 EV models into the U.S. market, achieving our third milestone of the year.  We have obtained clearance from the United States Environmental Protection Agency (EPA) for both models, so our focus now is working on some modifications to meet all Federal Motor Vehicle Safety Standards (FMVSS) requirements. We are also working on feature improvements to accommodate U.S. consumer tastes.”

Hu concluded, “Looking forward,we have multiple growth opportunities.  We are dedicated to building our business in the U.S., and we are pursuing third and fourth-tier city government-accredited EV online ride-share service businesses. With capital from the real estate repurchase agreement and the $160 million direct placement, we are confident that we can fund the R&D necessary to develop sports cars, battery swapping technology, and the ride-sharing program.Furthermore, our recent exit from the Fengshengaffiliationthrough thetransferof the remaining equity interest eliminates the non-compete restrictions, thusenabling us to pursue the EV market more aggressively in China.  We believe the years ahead hold a multitude of opportunities that can restart our growth.”

Full Year 2020 Financial Results

Net Revenues and Gross Profit




Net Revenues (US$mln)




Gross Profit (US$mln)




Gross Margin




Net revenues of $76.9 million decreased43.3% from 2019. The decrease was due primarily to reduced sales of EV parts, a result of production interruptions caused by the COVID-19 pandemic and the overall demand of EV parts from customers was significantly affected during 2020.Gross margin was 17.5%, compared with 18.7% in 2019. The decrease was due to less high-margin battery processing compared to 2019.

Operating Income (Loss)




Operating Expenses (US$mln)




Operating Income  (US$mln)




Operating Margin




Total operating expenses were $12.7 million, compared with $24.5 million in 2019. The decrease was due to lower general and administrative expenses, largely due to cost-cutting programs and tighter budget control.  We also booked a $14.2 million gain on disposal of long-lived assets, which was related to the real estate repurchase agreement.In June 2020, 73,333 square meters of land use rights were transferred to the local government, and the related gain was recognized.

Net Loss




Net Loss (US$mln)




Loss per Weighted Average Common Share




Loss per Weighted Average Diluted Share




Net loss was $10.4 million, compared with a net loss of $7.2 million in 2019. The greater net loss was primarily attributable to the absence of gains on the sales of equity that were present in 2019.

Full Year 2020 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 (8:00 P.M. Beijing Time) on Tuesday, March 30, 2021. 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: http://public.viavid.com/index.php?id=144093

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.