- Off-road Vehicles Sales Are Steadily Growing-
- Quarter-end cash balance increased to $232.5 million-
JINHUA, CHINA-- (August 8, 2022) - Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the second quarter of 2022.
Second Quarter Highlights
• Total revenues of $20.8 million compared to $29.9 million in the same period of 2021.
• Off-road vehicles sales increased by 84.4% to $10.1 million, compared to $5.5 million in the same period of 2021.
• EV products sales increased by 307.1% to $2.5 million, compared to $0.6 million in the same period of 2021.
• EV parts sales were $0.6 million, compared to $6.7 million in the same period of 2021.
• Electric Scooters, Electric Self-Balancing Scooters and associated parts sales were $1.2 million, compared with $16.5 million in the same period of 2021.
• Net loss was $1.9 million, or $0.02 loss per fully diluted share, compared to a net income of $40.9 million, or $0.54 income per fully diluted share for the same period of 2021. The decrease was primarily due to the second quarter 2021 gain from the disposal of long-lived assets of approximately $48.3 million, which was related to the relocation of our Jinhua factory. There was no similar gain in the second quarter of 2022.
• Working capital of $264.2 million as of June 30, 2022
• Cash,cash equivalents,restricted cash, and certificate of depositof $232.5 million as of June 30, 2022
Mr. Hu Xiaoming, Chairman and CEO of Kandi commented, “Kandi has continuously refined its business strategy to make our company more diversified and competitive. We saw the positive impact of this effort in the second quarter. Despite frequent lockdowns caused by COVID resurgences and severe supply chain disruptions, our business strategy adjustments enabled us to achieve relatively solid results. Notably, we are getting traction in a variety of newly launched off-road vehicles, such as golf karts, UTVs, ATVs, and beach dune buggy crossovers. For example, the monthly production of golf crossovers increased to 2,000 units in June, from just double digits in March. We intend to launch more new models as the year goes on to capture this market opportunity. We believe this product category could grow around 19% annually in compound growth rate, and eventually exceeding $2.2 billion by 2028. We are confident of sequential growth in off-road vehicles in the quarters ahead.”
Q2 2022 Financial Results
Net Revenues and Gross Profit (in USD millions)
|
|
Q2 2022 |
Q2 2021 |
Y-o-Y% |
|
Net Revenues |
$20.8 |
$29.9 |
-30.2% |
|
Gross Profit |
$2.7 |
$6.1 |
-55.4% |
|
Gross Margin% |
13.0% |
20.4% |
- |
Net revenues of $20.8 million in the second quarter of 2022 decreased 30.2% from the same period of 2021. The revenue decline was primarily due to lower sales volumes of Electric Scooters, Electric Self-Balancing Scooters and associated parts and EV parts due to lower seasonal demand. The mix shift to more battery revenue caused the contraction in gross margin.
Operating Income/Loss (in USD millions)
Q2 2022
Q2 2021
Y-o-Y%
Operating (Expenses) Income
($9.0)
$38.3
-123.5%
(Loss) income from Operations
($6.3)
$44.4
-114.2%
Operating
Margin%
-30.1%
148.5%
-
Operating expenses were $9.0 million, compared with operating income of $38.3 million for the same period of 2021. Second quarter 2021 operating income included the $48.3 million gain from the disposal of long-live assets related to our Jinhua facility relocation.
Net Income/Loss (in USD millions)
Q2 2022
Q2 2021
Y-o-Y%
Net (loss) Income
($1.9)
$40.9
-104.6%
Net (Loss) income per Share, Basic and Diluted
($0.02)
$0.54
-
Net loss for the second quarter of 2022 was $1.9 million compared to net income of $40.9 million for the same period of 2021, reflecting the one-time facility relocation gain last year.
Second Quarter 2022 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, August 8, 2022. 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: https://viavid.webcasts.com/starthere.jsp?ei=1562753&tp_key=ef917a2508
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.
