Kandi Technologies Reports First Quarter 2021 Financial Results

                                                                                          --Revenue of $16 million, +151% y/y--

                                                                                             --Working Capital of $244 million—

JINHUA, CHINA-- (May 10, 2021) - Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced financial results for the first quarter of 2021.

First Quarter Highlights

• Total revenues increased by 150.7% to $16.0 million, from $6.4 million in the same period of 2020.

• EV parts sales increased by 206.0% to $6.4 million, compared to $2.1 million in the same period of 2020.

• Off-road vehicles sales increased by 39.2% to $5.6 million, compared to $4.0 million in the same period of 2020.

• Electric Scooters, Electric Self-Balancing Scooters and associated parts sales were $3.9 million.  As a new business, there was no revenue in the same period of 2020.

• Gross margin was 27.3%, compared to 18.3% for the same period of 2020.

• Net loss was $6.4 million, or $0.08 loss per fully diluted share due to investment in R&D for new products, compared to a net loss of $1.6 million, or $0.03 loss per fully diluted share for the same period of 2020.

• As of March 31, 2021, working capital was $244.1 million; cash, cash equivalents, restricted cash and certificate of deposittotaled $162.5 million.

Mr. Hu Xiaoming, Chairman and CEO of Kandi commented: “The most promising EV opportunities we see today are short-distance small EVs in China and high-end electric Utility Terrain Vehicles in the U.S.  We are focused on mass markets by developing vehicles for these segments with a cost of RMB 30,000 (approximately US$4,663) or less.  For China we are developing a ‘neighborhood EV’.  For the U.S., we are working on a fully enclosed high-end air-conditioned electric 4WD UTV.  We expect to launch both products this year.”

Hu continued, “We intend to pursue the EV market more aggressively now that we are no longer constrained by the non-compete restrictions of our affiliation with Fengsheng.  We spent a lot on R&D in the quarter, as we start to develop a new EV model.  We are also considering EV product line expansion through acquisition, and are in various stages of discussions with several potential target companies.”

Turning to Kandi’s facility strategy, Hu elaborated, “In China our Jinhua facility relocation work was completed in the first quarter.We finished relocating production and offices to the new industrial park and vacated the old factory property.  In early April, officials of the Jinhua Development Zone inspected and approved the work.  We expect to soon receive the remaining payment of RMB 162 million, or approximately USD 25 million. Meanwhile, in late Aprilour U.S. subsidiary SC Autosportsmoved its team to ournewly purchased building in Dallas.”

Mr. Hu concluded, “Although our net loss grew in the first quarter, this was due to our extensive investment in R&D.  Sales were solid and the EV product segment should soon recover as we execute our growth plan.  We are well-funded, having collected payments for Fengsheng and the relocation.  With our strong balance sheet and leading technologies, we intend to pursue exciting EV opportunities such as battery swap and the ride-sharing platform, among others.”

Q1 2021 Financial Results

Net Revenues and Gross Profit (in USD millions)




Net Revenue




Gross Profit




Gross Margin




Operating Income/Loss (in USD millions)Net revenues of $16.0 million increased 150.7% from the first quarter of 2020. The increase in revenue was primarily due to growth in EV parts and the new segment of Electric Scooters, Electric Self-Balancing Scooters and associated parts.

Operating Income/Loss (in USD millions)




Operating Expenses




Operating Loss




Operating Margin




Total operating expenses were $27.2 million, compared with $4.6 million in the first quarter of 2020. The increase was due to R&D spending to develop new products.

Net Loss (in USD millions)




Net Loss




Loss per Weighted Average Common Share




Loss per Weighted Average Diluted Share




Net loss was $6.4 million, compared with a net loss of $1.6 million in the same period of 2020.  The greater loss was primarily attributable to increased R&D expense for new products.

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 Monday, May 10, 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=144859

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.