- Product Transformation Initiative Driving Profit Growth-

                                                                           - Nine-month Net Income of $6.3 Million, Diluted EPS of $0.08-

JINHUA, China, Nov. 07, 2023 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the “Company”, “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the third quarter of 2023.

Third Quarter and Nine Months 2023 Financial Highlights

Third quarter total revenues of $36.4 million increased by 8.2% year-over-year.

• Nine-month revenues of $95.2 million increased by 19.9% year-over-year.

• Net income for the nine months was $6.3 million, or $0.08 income per fully diluted share, compared to a net loss of $2.4 million, or $0.03 loss per fully diluted share for the same period of 2022.

• Cash and cash equivalents, restricted cash, and certificate of deposit totaled $244.5 million as of September 30, 2023.

Dr. Xueqin Dong, CEO of Kandi, commented, “We are pleased to see that, following a turnaround from losses to profits in the first half of 2023, the company was profitable in the quarter. Comparing to the first nine months of last year, key metrics grew significantly, with increased sales, higher net income, and a notable improvement in gross profit. This achievement highlights our ongoing commitment to delivering exceptional value to our customers. Our strategic adjustments in recent years paved the way for this positive performance in the all-electric off-road vehicle market. Recently, we showcased our new electric off-road vehicle products at the Mid-States Rendezvous and received positive feedback, which has further solidified our market presence across various channels.”

Dr. Dong continued, “Looking ahead to 2024, our primary focus is to increaseexpand ourmarket share influence in the North American market. Kandi’s dedication to innovation and quality places us in a strong position to capitalize on the growing demand for fully electric off-road vehicles in the region, presenting significant market potential and opportunities for sustained growth. We are confident that our sales and production in 2024 will grow substantially compared to those of this year.”

Financial Results for the Third Quarter and the First Nine Months of 2023

Net Revenues and Gross Profit (in USD millions)

Q3	2023	2022	Y-o-Y%
Net Revenues	$36.4	$33.7	+8.2%
Gross Profit	$10.9	$6.4	+71.4%
Gross Margin%	30.0%	18.9%	-

Nine Months Ending Sep 30	2023	2022	Y-o-Y%
Net Revenues	$95.2	$79.4	+19.9%
Gross Profit	$32.7	$11.5	+184.8%
Gross Margin%	34.3%	14.5%

During the first nine months of 2023, net revenues grew 19.9%, reaching $95.2 million, fueled by rapid market acceptance of our fully-electric off-road vehicles and related components. Furthermore, gross margin improved compared to the previous year, due to the better profitability of fully-electric off-road vehicles, particularly crossover golf carts.

Operating Income/Loss (in USD millions)

Q3	2023	2022	Y-o-Y%
Operating Expenses	($14.5)	($8.6)	+69.4%
Loss from Operations	($3.6)	($2.2)	+63.7%
Operating Margin%	(9.8%)	(6.5%)	-

Nine Months Ending Sep 30	2023	2022	Y-o-Y%
Operating Expenses	($38.7)	($25.7)	+51.0%
Loss from Operations	($6.1)	($14.2)	-57.3%
Operating Margin%	(6.4%)	(17.9%)

During the nine months, Operating expenses rose to $38.7 million from $25.7 million in the same period of 2022, reflecting investment in the off-road EV opportunity in the U.S. Growing expenditures in sales, marketing, and general administration are directly linked to expanding exports to the U.S. market.

Net Income/Loss (in USD millions)

Q3	2023	2022	Y-o-Y%
Net Income	$1.3	$1.1	+19.0%
Net Income per Share, Basic and Diluted	$0.02	$0.01	-

Nine Months Ending Sep 30	2023	2022	Y-o-Y%
Net Income (loss)	$6.3	($2.4)	NM
Net Income (loss) per Share, Basic and Diluted	$0.08	($0.03)

Net income of the first nine months reached $6.3 million, turning from a net loss in the same period in 2022, mainly due to higher gross profit from increased sales of high-margin off-road vehicles resulting from the product transformation strategy.

Third Quarter 2023 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 Wednesday, November 8, 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=1642510&tp_key=32e2677025

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.