Revamped strategy leads to highest revenue in 3 years
Optimistic outlook due to strong balance sheet and diversified business model
JINHUA, China, March 15, 2023 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the “Company”, “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the full year ended December 31, 2022.
Full Year 2022 Highlights
• Total revenues increased by 28.8% to $117.8 million, from $91.5 million in 2021.
• Off-road vehicles and associated parts sales increased by 140.7% to $70.6 million, compared to $29.3 million in 2021.
• EV products sales increased to $7.9 million from $1.5 million in 2021.
• EV parts sales were $9.0 million, compared to $25.3 million in 2021.
• Electric Scooters, Electric Self-Balancing Scooters and associated parts sales were $4.6 million, compared with $30.0 million in 2021.
• Lithium-ion cells increased to $24.0 million from $4.5 million in 2021.
• Net loss was $12.9 million, or $0.17 loss per fully diluted share, compared to a net income of $22.9 million, or $0.30 income per fully diluted share for 2021.The decrease in 2022 was due to the absence of gains from disposal of long-lived assets and equity sales that totaled $66.2 million in 2021.
• Working capital totaled $247.8 million as of December 31, 2022.
• Cash and equivalents, restricted cash, and certificate of deposit totaled $232.2 million as of December 31, 2022.
Dr. Xueqin Dong, Chief Executive Officer of Kandi commented, “Over the past year, the management of Kandi has made concerted efforts to adapt to changing market conditions and adjust our development strategies accordingly. As a result, we have effectively avoided the risks of potential losses in the market for electric vehicles. Additionally, we have successfully leveraged the technology of our all-electric vehicles to expand into the off-road vehicle sector, which has yielded significant results. This dedication and innovation paid off, as our total revenue reached a three-year high in 2022. We remain committed to this positive momentum and aim to introduce new and competitive products to meet evolving customer demands.”
Dr. Dong concluded, “Our achievements are the result of our focus on developing highly competitive products, as well as the strong support of our strategic partners and the trust of our customers. We are grateful for the support and trust of our valued customers and partners, and we will work hard to meet their evolving needs. With a robust balance sheet and a diversified business model, we are confident about the future and remain committed to maintaining positive momentum in our development.”
Full Year 2022 Financial Results
Net Revenues and Gross Profit (in USD millions)
|
|
2022 |
2021 |
Y-o-Y% |
|
Net Revenues |
$117.8 |
$91.5 |
28.8% |
|
Gross Profit |
$19.5 |
$16.2 |
20.1% |
|
Gross Margin% |
16.6% |
17.8% |
- |
Net revenues of $117.8 million increased by 28.8% from 2021. The 141% surge in sales of off-road vehicles and associated parts contributed to total revenue and gross profit. The slight dip in gross margin versus 2021 was attributable to a mix of product portfolio shifting to lower margin products such as lithium-ion cells.
Operating Income/Loss (in USD millions)
|
|
2022 |
2021 |
Y-o-Y% |
|
Operating Expenses |
($47.2) |
($14.9) |
216.5% |
|
(Loss) income from Operations |
($27.7) |
$1.34 |
-2,171.5% |
|
Operating Margin% |
-23.5% |
1.5% |
- |
Net Income/Loss (in USD millions)
|
|
2022 |
2021 |
Y-o-Y% |
|
Net (Loss) Income |
($12.9) |
$22.9 |
(156.2%) |
|
Net (Loss) Income per Share, Basic and Diluted |
($0.17) |
$0.30 |
- |
Net loss was $12.9 million, compared to a net income of $22.9 million for 2021. The shift from profitability to loss was primarily caused by the recognition of gains resulting from the relocation of the Jinhua facility in 2021.
Full Year 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 Wednesday, March 15, 2023. 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=1604055&tp_key=72820e6b1d
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.
