--Revenue ~$17 million --
--Working Capital of ~$289 million, cash balance $211 million –
-- Sales into e-Scooter-related markets surge nearly 600% --
JINHUA, CHINA-- (November 9, 2021) - Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced financial results for the third quarter of 2021.
Third Quarter Highlights
•Total revenues decreased by 10.3% to $16.8 million, from $18.7 million in the same period of 2020.
•EV parts sales were $3.2 million, compared to $8.4 million in the same period of 2020.
•Off-road vehicles sales were $6.8 million, compared to $8.9 million in the same period of 2020.
•Electric Scooters, Electric Self-Balancing Scooters and associated parts sales were $6.3 million, compared to $0.9 million in the same period of 2020.
•Battery exchange equipment and battery exchange service sales were $0.2 million. This new business had no revenue in the same period of 2020.
•Gross margin was 16.4%, compared to 20.9% for the same period of 2020.
•Net loss was $7.9 million, or ($0.10) per fully diluted share due to decreased sales and increased investment in R&D, compared to net loss of $1.5 million, or ($0.03) per fully diluted share for the same period of 2020.
•As of September 30, 2021, working capital was $289.4 million. Cash, cash equivalents, restricted cash, and a certificate of deposit totaled $211.0 million.
Hu Xiaoming, Chairman and CEO of Kandi commented: “Sales are surging in the segment of e-Scooters, electric self-balancing scooters and associated parts sales. With explosive growth again this quarter, we are increasingly confident that our traction in this market can continue. Our strategic entry into this market last year represents a great success in identifying and developing intelligent transportation products to counteract the impact to EV market demand caused by the COVID-19 outbreak in 2020. We expect the EV-related business recovery to take time. Our restructuring of this business segment resulted in lower sales of EV products and parts.”
Hu continued, “Compared to the second quarter, our sales mix had a couple of notable shifts. Within EV parts, battery pack sales were impacted by supply chain constraints hitting the whole industry. Meanwhile, off-road vehicles sales grew more rapidly, indicating burgeoning customer demand for off-road and ATV recreation. We are excited about the new products we are introducing for this segment.”
Turning to the balance sheet, Hu commented, “During the quarter we received the final payment related to the sale of our 22% equity position in Fengsheng. Our liquidity has never been better. We are well-capitalized to pursue the most promising market opportunities: those that show high demand, are not oversupplied, and play to our competitive strengths. After we finish the ‘reset’ of our electric vehicle business, we can again achieve substantial growth. ”
Q3 2021 Financial Results
Net Revenues and Gross Profit (in USD millions)
|
|
3Q21 |
3Q20 |
Y/Y% |
|
Net Revenue |
$16.8 |
$18.7 |
-10.3% |
|
Gross Profit |
$2.7 |
$3.9 |
-29.7% |
|
Gross Margin |
16.4% |
20.9% |
- |
Net revenues of $16.8 million decreased 10.3% from the third quarter of 2020. The decrease in revenue was primarily due to lower sales of EV parts. Gross margin was 16.4%, lower than the 20.9% recorded in the same period of 2020, primarily attributable to a lower proportion of revenue generated from off-road vehicles, which offers higher gross margin.
Operating Income/Loss(in USD millions)
|
|
3Q21 |
3Q20 |
Y/Y% |
|
Operating Expenses |
($11.8) |
($6.3) |
87.2% |
|
Loss from Operations |
($9.0) |
($2.4) |
279.3% |
|
Operating Margin |
-53.7% |
-12.7% |
- |
Net Loss (in USD millions)Operating expenses were $11.8 million, compared with expenses of $6.3 million in the third quarter of 2020. The greater expense was primarily attributable to increased R&D spending for new product development.
Net Loss (in USD millions)
3Q21
3Q20
Y/Y%
Net Loss
($7.9)
($1.5)
439.6%
Net Loss per Share, Basic and Diluted
($0.10)
($0.03)
-
Net loss was $7.9 million, compared with a net loss of $1.5 million in the same period of 2020. The greater loss was primarily attributable to higher R&D spending and decreased revenue generated by certain EV parts.
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 (9:00 P.M. Beijing Time) on Tuesday, November 9, 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: +1-844-825-9789
• International dial-in number: + 1-412-317-5180
• Webcast and replay: https://viavid.webcasts.com/starthere.jsp?ei=1511452&tp_key=9297e2ff2a
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.
