While U.S.–China tariffs have posed challenges, we’ve identified mitigation measures and are diligently advancing our strategic initiatives.

As our strategic initiatives take shape, we’ve made progress—establishing U.S. lithium-battery assembly and a local production facility—and will disclose further developments via company announcements and SEC filings.

In the U.S., Kandi provides nationwide support for its vehicles, including golf carts, through a combination of service centers, remote troubleshooting, and parts fulfillment. While it’s true that some customers are located far from our physical service locations, we have built a flexible support model to address those situations.

Kandi is not legally responsible for warranty repairs on Coleman-branded golf carts, even if those units were manufactured by Kandi or share similar specifications. Once products are sold under the Coleman brand, the responsibility for customer support, warranty handling, and parts service lies solely with Coleman (or the distributor managing that brand).

The October 2024 release addressed our new swap equipment still in R&D; progress remains on track.

Our Texas facility’s final assembly and inspection lines are now fully installed and commissioned, and our first trial-production golf cart has successfully rolled off the line—an important milestone toward localized mass production. The plant currently assembles key components sourced both locally and internationally, and we’re actively working to increase the proportion of U.S.-sourced parts over time.

As part of this effort, we’re evaluating various partnership and localization strategies, including our recently announced joint venture with CBAK Energy to produce lithium cells and battery packs in the U.S. This reflects our broader goal of expanding local manufacturing capabilities and improving tariff efficiency.

Regarding financial reporting, following our reincorporation in the British Virgin Islands (BVI) last April, Kandi Technologies is now classified by the U.S. Securities and Exchange Commission (SEC) as a Foreign Private Issuer. We have adopted the standard reporting practices for such issuers, including the discontinuation of standalone quarterly reports. This approach fully complies with SEC regulations and Nasdaq requirements and replaces quarterly releases with comprehensive annual Form 20-F filings and detailed semi-annual reports.

We remain committed to transparent, timely disclosures and to efficiently deploying our resources in support of long-term value creation.

Should we pursue additional listings, we will timely disclose per applicable regulations.

All of our listed facilities—China, Taiwan, and Texas—are fully operational and dynamically calibrated to order volumes. We shift production volumes among sites as needed to optimize lead times and costs. While we don’t disclose exact utilization rates, each plant is sized to efficiently support current and near-term demand.

Land‐use certificate procedures are actively underway in compliance with Chinese government requirements; production in Hainan remains unaffected.

Our management team is currently implementing a phased outreach strategy. As some of our key initiatives begin to materialize in the coming period, we plan to gradually engage with more money managers and institutional investors. This targeted approach will allow us to build our shareholder base and strengthen institutional support when we can best demonstrate our business progress and value proposition.

In 2025, the company plans to roll out a series of highly competitive new products. Information on these products will be available on the company’s official website as they are released.

Construction of the Texas plant is progressing smoothly. The final assembly line has been fully installed and commissioned, and the first trial-production golf cart has successfully rolled off the line.

Our retail network continues to evolve based on product cycles and market strategy. Any additions, terminations, or changes in store counts are announced through official company channels.

As disclosed in our 20-F, Kandi and its subsidiaries may, in the normal course of business, face various legal or administrative claims, but are not currently involved in any material legal or administrative proceedings.

At present, our primary focus remains on executing our business strategy and creating sustainable long-term value. We believe this approach will ultimately deliver greater benefits to all shareholders than short-term capital allocation measures. Should the share price fall below $1 again, management will consider a buyback in accordance with the board’s guidance.

Over 20 patents were granted in 2024—such as “Front‐Mounted Electric Quad,” “Integrated Beach Buggy Footrest,” and “Battery Compression Test Device.” To date in 2025, we have secured about seven additional patents. Our new battery‐swap equipment remains under development and has not yet been filed for patent protection.

Regarding the potential IPO of Kandi’s U.S.-based subsidiary SC, the company will advance related preparations in accordance with market conditions and business development progress, and will disclose relevant information as required by SEC regulations.