-Steady Growth in Off-road Vehicles-

-Revenue growth drove significantly narrowed loss-

JINHUA, CHINA-- (November 8, 2022) - Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the third quarter of 2022.

Third Quarter Highlights

Total revenues of $33.7 million compared to $16.8 million in the same period of 2021.

Off-road vehicles and associated parts sales increased by 217.6% to $21.7 million, compared to $6.8 million in the same period of 2021.

EV products sales increased significantly to $1.7 million from $0.3 million in the same period of 2021.

EV parts sales were $2.6 million, compared to $3.2 million in the same period of 2021.

Electric Scooters, Electric Self-Balancing Scooters and associated parts sales were $1.2 million, compared with $6.3 million in the same period of 2021.

Net income was $1.1 million, or $0.01 income per fully diluted share, compared to a net loss of $7.9 million, or $0.10 loss per fully diluted share for the same period of 2021. A turn to profitability from loss was largely attributed to higher total revenue, resulted from highly performed off-road vehicles and associated parts sales, and lower operating expenses.

Working capital totaled $252.9 million as of September 30, 2022

Cash and equivalents, restricted cash, and certificate of deposit totaled $210.2 million as of September 30, 2022

Mr. Hu Xiaoming, Chairman and CEO of Kandi commented, “During the third quarter, our strategic pivot enabled us to make inroads in electric off-road vehicles.  With high market interest in the electrification of off-road vehicles, we successfully developed and delivered “crossover” electric golf carts that are seeing high acceptance by our customers. Growing demand, and positive market feedback gives us more confidence to invest more in electric off-road vehicles.  Our next step is to launch more models in the categories of golf crossovers, utility terrain vehicles, and more.  We believe that our top line growth and disciplined control of operating expenses can drive improved profitability, which will be increasingly recognized by investors.”

Q3 2022 Financial Results

Net Revenues and Gross Profit (in USD millions)

	Q3 2022	Q3 2021	Y-o-Y%
Net Revenues	$33.7	$16.8	100.5%
Gross Profit	$6.4	$2.7	131.6%
Gross Margin%	18.9%	16.4%	-

Net revenues of $33.7 million in the third quarter of 2022 increased 100.5% from the same period of 2021. The increase in revenue and gross margin was primarily due to a product mix shift to off-road vehicles, a segment with a higher gross margin that achieved significant growth in the past quarter.

Operating Income/Loss (in USD millions)

	Q3 2022	Q3 2021	Y-o-Y%
Operating Expenses	($8.6)	($11.8)	27.3%
Loss from Operations	($2.2)	($9.0)	75.7%
Operating Margin%	-6.5%	-53.7%	-

Operating expenses were $8.6 million, compared with operating expense of $11.8 million for the same period of 2021. Operating expenses decreased as the Company moved past the 2021 peak research and development effort on new products.

Net Income/Loss (in USD millions)

	Q3 2022	Q3 2021	Y-o-Y%
Net Income (Loss)	$1.1	($7.9)	113.6%
Net Income (Loss) per Share, Basic and Diluted	$0.01	($0.1)	-

Net income was $1.1 million comparing to a net loss of $7.9 million for the same period of 2021. The turn to profitability was primarily due to higher total revenue and lower operating expenses.

Third 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 (9:00 P.M. Beijing Time) on Tuesday, November 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: +1-844-825-9789

International dial-in number: + 1-412-317-5180

Webcast and replay:  https://viavid.webcasts.com/starthere.jsp?ei=1581599&tp_key=a040e098ec

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.