JINHUA, China, June 05, 2020 (GLOBE NEWSWIRE) — Kandi Applied sciences Group, Inc. (the “Firm,” “we” or “Kandi”) (NASDAQ GS: KNDI), at the moment introduced its monetary outcomes for the primary quarter of 2020.
First Quarter Highlights
- Complete revenues decreased 64.7% to $6.Four million for the primary quarter of 2020, from $18.1 million in the identical interval of 2019.
- Electrical Car (“EV”) components gross sales decreased 83.7% to $2.1 million for the primary quarter of 2020, in contrast with $12.Eight million in the identical interval of 2019.
- Off-road car revenues decreased 23.8% to $4.Zero million for the primary quarter of 2020 in contrast with $5.Three million in the identical interval of 2019.
- Gross margin for the primary quarter of 2020 was 18.3%, in comparison with 17.4% for a similar interval of 2019.
- Web loss for the primary quarter of 2020 was $1.6 million, or $0.03 loss per fully-diluted share, in contrast with internet lack of $4.Four million, or $0.09 loss per fully-diluted share in the identical interval in 2019.
- The Firm’s working capital surplus was $60.7 million as of March 31, 2020. Money, money equivalents and restricted money totaled $9.Eight million as of March 31, 2020.
Mr. Hu Xiaoming, Chairman and CEO of Kandi commented: “First quarter outcomes have been closely impacted by the worldwide virus outbreak. We prioritized the well being and security of our staff, and totally cooperated with the federal government by taking varied preventative and quarantine measures throughout our firm quickly after the outbreak. The first motion was closing our services and ceasing manufacturing. For the reason that starting of April, the scenario has turned the nook; enterprise is step by step resuming, gross sales are recovering, and client demand is rebounding.”
Commenting on vital regulatory developments, Mr. Hu mentioned, “Because the inventor of the “car/battery separation” battery swapping mannequin for pure electrical automobiles, we’re extraordinarily gratified to our business’s regulators shift from rejecting battery swapping to totally embracing it. Most not too long ago, on April 23 the Ministry of Finance, the Ministry of Business and Data Expertise, the Ministry of Science and Expertise, and the Improvement and Reform Fee of China collectively issued a paper discussing the “car/battery separation” battery swapping mannequin. Kandi is totally levered to the battery swap alternative with the clever automated swap system constructed by our subsidiary Jinhua Ankao. We’re repeatedly enhancing this technique, and consider it may be a market chief in China.”
Hu continued, “One other vital improvement was the federal government’s publication on June 1 of an in depth plan to assemble a Hainan Free Commerce Port. There can be 60 distinct insurance policies supporting the commerce port. We consider the port may catalyze speedy development for our Hainan manufacturing facility.”
Shifting to new market alternatives, Hu continued, “The COVID outbreak has significantly impacted the EV market in 2020, main us to discover tips on how to increase our enterprise. As we performed market analysis, we discovered potential in a variety of ancillary merchandise aimed toward clever transportation. For instance, Electrical Scooters and Electrical Self-Balancing Autos have distinct potential, with tens of tens of millions of items offered every year world wide. We’re pursuing these alternatives by increasing manufacturing of clever transportation merchandise that exploit our benefits in Yongkang Scrou’s energy electrical motors and Jinhua Ankao’s energy battery packs. Our merchandise aimed toward this market combines our motors and battery packs right into a dynamic energy practice system. By way of intensive product trials, we’re capable of meet a number one commonplace in China, and thus will go into mass manufacturing this month. As this enterprise is growing rapidly, we’ll think about merging Yongkang Scrou and Jinhua Ankao right into a single specialised powertrain know-how firm, and consider the potential for elevating capital in China’s capital market to fund development.”
Additional discussing new alternatives, Hu concluded, “Just lately, we now have been in discussions with Mr. Ying Jiawei, CEO of Hangzhou Stylish Clever Expertise Co., Ltd, a number one excessive tech firm that’s well-recognized as a serious exporter in clever steadiness scooter sector. Now we have agreed to have Kandi to start out utilizing its energy trains system to supply steadiness scooters for Hangzhou Stylish. Hangzhou Stylish has gathered greater than 500 technical patents within the steadiness scooter sector and is an originator of the steadiness scooter merchandise. Their main and revolutionary know-how has broadly penetrated the market. Every year, about ten million scooters utilizing their patents are produced. We consider this could be a productive partnership, as we marry their know-how experience with our manufacturing prowess and know-how benefits.”
Web Revenues and Gross Revenue
|Web Revenues (US$mln)||$6.4||$18.1||-64.7%|
|Gross Revenue (US$mln)||$1.2||$3.1||-62.8%|
Web revenues for the primary quarter decreased 64.7% in comparison with the identical interval final yr. The lower in income was primarily because of the outbreak of COVID-19 and the lock-down coverage in China within the first quarter of 2020, which considerably affected each our manufacturing and buyer demand.
Working Revenue (Loss)
|Working Bills (US$mln)||$4.6||$3.2||43.5%|
|Working Loss (US$mln)||($3.4)||($0.06)||5740.1%|
Complete working bills within the first quarter have been $4.6 million, in contrast with $3.2 million in the identical quarter of 2019. The rise in complete working bills was primarily as a consequence of increased common and administrative bills.
|Web Loss (US$mln)||($1.6)||($4.4)||-64.3%|
|Loss per Weighted Common Frequent Share Excellent Primary||($0.03)||($0.09)||–|
|Loss per Weighted Common Frequent Share Excellent Diluted||($0.03)||($0.09)||–|
Web loss was $1.6 million within the first quarter, in contrast with internet lack of $4.Four million in the identical quarter of 2019. The lower in loss was primarily attributable to the decreased share of the losses of the Affiliate Firm and elevated achieve associated to adjustments within the honest worth of contingent consideration, offset by the decreased achieve from fairness dilution within the Affiliate Firm and decreased gross revenue.
As of March 31, 2020, the Firm had money and money equivalents of $3.7 million, restricted money of $6.Zero million, working capital of $60.7 million; in comparison with $5.5 million, $11.Zero million, $63.7 million as of December 31, 2019.
As of March 31, 2020, our accounts receivable was $53.9 million, in comparison with $61.2 million as of December 31, 2019.
For the primary quarter of 2020, money utilized in working actions was $26.5 million, as in comparison with money utilized in working actions of $14.Zero million for a similar interval final yr.
First Quarter of 2020 Convention Name Particulars
The Firm has scheduled a convention name and stay webcast to debate its monetary outcomes at 8:00 A.M. Japanese Time (8:00 P.M. Beijing Time) on June 5, 2020. Administration will ship ready remarks to be adopted by a query and reply session.
The dial-in particulars for the convention name are as follows:
The stay audio webcast may also be accessed by visiting Kandi’s Investor Relations web page on the Firm’s web site at http://www.kandivehicle.com. An archive of the webcast can be obtainable on the Firm’s web site following the stay name.
About Kandi Applied sciences Group, Inc.
Kandi Applied sciences Group, Inc. (KNDI), headquartered in Jinhua Financial Improvement Zone, Zhejiang Province, is engaged within the analysis, improvement, manufacturing, and gross sales of varied vehicular merchandise. Kandi conducts its major enterprise operations via its wholly-owned subsidiary, Zhejiang Kandi Autos Co., Ltd. (“Kandi Autos”) and its subsidiaries, SC Autosports, LLC, the wholly-owned subsidiary of Kandi in the USA and Fengsheng Vehicle Expertise Group Co., Ltd (previously often known as Kandi Electrical Autos Group Co., Ltd., the “Affiliate Firm”). Kandi Autos has established itself as one in every of China’s main producers of pure electrical car components and off-road automobiles.
In 2013, Kandi Autos and Geely Group, China’s main automaker, collectively invested within the institution of the Affiliate Firm with the intention to develop, manufacture and promote pure electrical car (“EV”) merchandise. Geely Group (together with its affiliate) and Kandi Autos at the moment holds 78% and 22% of the fairness pursuits within the Affiliate Firm, respectively. The Affiliate Firm has established itself as one of many driving forces within the improvement and the manufacturing of pure EV merchandise in China.
Extra details about KNDI is on the market on the Firm’s company web site at http://www.kandivehicle.com. The Firm routinely posts vital data on its web site.
Protected Harbor Assertion
This press launch comprises sure statements which will embody “forward-looking statements.” All statements apart from statements of historic reality included herein are “forward-looking statements.” These forward-looking statements are sometimes recognized by means of forward-looking terminology akin to “believes,” “expects” or comparable expressions, involving identified and unknown dangers and uncertainties. Though the Firm believes that the expectations mirrored in these forward-looking statements are affordable, they do contain assumptions, dangers and uncertainties, and these expectations could show to be incorrect. You shouldn’t place undue reliance on these forward-looking statements, which communicate solely as of the date of this press launch. The Firm’s precise outcomes may differ materially from these anticipated in these forward-looking statements because of quite a lot of components, together with the chance components mentioned within the Firm’s periodic experiences which are filed with the Securities and Change Fee and obtainable on the SEC’s web site (http://www.sec.gov). All forward-looking statements attributable to the Firm or individuals performing on its behalf are expressly certified of their entirety by these danger components. Aside from as required below the relevant securities legal guidelines, the Firm doesn’t assume an obligation to replace these forward-looking statements.
Observe us on Twitter: @ Kandi_Group
For Extra Data:
Kandi Applied sciences Group, Inc.
Ms. Kewa Luo
Telephone: +1 (212) 551-3610
The Blueshirt Group
Mr. Gary Dvorchak
Ms. Susie Wang
– Tables Beneath –
KANDI TECHNOLOGIES GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
|Money and money equivalents||$||3,719,142||$||5,490,557|
|Accounts receivable (internet of allowance for uncertain accounts of $250,325 and $254,665 as of March 31, 2020 and December 31, 2019, respectively)||53,896,084||61,181,849|
|Prepayments and pay as you go expense||10,407,639||10,615,063|
|Quantity due from the Affiliate Firm, internet||20,026,310||31,330,763|
|Different present property||8,910,217||688,364|
|TOTAL CURRENT ASSETS||177,432,424||195,572,436|
|Property, plant and gear, internet||71,391,249||74,407,858|
|Land use rights, internet||11,000,953||11,272,815|
|Funding within the Affiliate Firm||45,337,659||47,228,614|
|Different long run property||10,473,979||10,811,501|
|TOTAL Lengthy-Time period Property||169,551,390||175,645,960|
|Different payables and accrued bills||5,021,303||6,078,041|
|Revenue tax payable||1,761,101||1,796,601|
|Long run financial institution loans – present portion||13,544,782||13,779,641|
|Different present legal responsibility||1,480,193||1,379,808|
|Complete Present Liabilities||116,760,998||131,873,739|
|Long run financial institution loans||14,109,148||14,353,792|
|Deferred taxes legal responsibility||1,362,786||1,362,786|
|Contingent consideration legal responsibility||1,405,000||5,197,000|
|Different long-term legal responsibility||564,366||574,152|
|Complete Lengthy-Time period Liabilities||17,441,300||21,487,730|
|Frequent inventory, $0.001 par worth; 100,000,000 shares licensed; 56,273,102 and 56,263,102 shares issued and 52,849,441 and 52,839,441 excellent at March 31, 2020 and December 31, 2019, respectively||52,849||52,839|
|Much less: Treasury inventory (487,155 shares with common worth of $5.09 at March 31, 2020 and December 31, 2019, respectively)||(2,477,965||)||(2,477,965||)|
|Further paid-in capital||259,713,660||259,691,370|
|Accrued deficit (the restricted portion is $4,422,033 and $4,422,033 at March 31, 2020 and December 31, 2019, respectively)||(18,260,382||)||(16,685,736||)|
|Accrued different complete loss||(26,246,646||)||(22,723,581||)|
|TOTAL STOCKHOLDERS’ EQUITY||212,781,516||217,856,927|
|TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY||$||346,983,814||$||371,218,396|
KANDI TECHNOLOGIES GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
|Three Months Ended|
|REVENUES FROM UNRELATED PARTY, NET||$||6,372,424||$||16,334,963|
|REVENUES FROM THE AFFILIATE COMPANY AND RELATED PARTY, NET||–||1,733,497|
|COST OF GOODS SOLD||(5,205,165||)||(14,932,023||)|
|Analysis and improvement||(640,240||)||(537,433||)|
|Promoting and advertising||(878,306||)||(618,003||)|
|Normal and administrative||(3,066,735||)||(2,039,528||)|
|Complete Working Bills||(4,585,281||)||(3,194,964||)|
|LOSS FROM OPERATIONS||(3,418,022||)||(58,527||)|
|OTHER INCOME (EXPENSE):|
|Change in honest worth of contingent consideration||3,792,000||89,000|
|Acquire from fairness dilution within the Affiliate Firm||–||4,365,390|
|Share of loss after tax of the Affiliate Firm||(1,102,770||)||(9,949,158||)|
|Different earnings, internet||19,650||474,390|
|Complete different earnings (expense), internet||2,075,989||(5,159,433||)|
|LOSS BEFORE INCOME TAXES||(1,342,033||)||(5,217,960||)|
|INCOME TAX (EXPENSE) BENEFIT||(232,613||)||808,488|
|OTHER COMPREHENSIVE INCOME (LOSS)|
|Overseas foreign money translation||(3,523,065||)||5,404,028|
|COMPREHENSIVE INCOME (LOSS)||$||(5,097,711||)||$||994,556|
|WEIGHTED AVERAGE SHARES OUTSTANDING BASIC||52,361,077||51,565,287|
|WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED||52,361,077||51,565,287|
|NET LOSS PER SHARE, BASIC||$||(0.03||)||$||(0.09||)|
|NET LOSS PER SHARE, DILUTED||$||(0.03||)||$||(0.09||)|
KANDI TECHNOLOGIES GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
|Steadiness, December 31, 2018||51,484,444||$||51,484||$||–||$||254,989,657||$||(9,497,009||)||$||(19,921,258||)||$||225,622,874|
|Inventory issuance and award||1,096,397||1,097||–||3,387,379||–||–||3,388,476|
|Overseas foreign money translation||–||–||–||–||–||5,404,028||5,404,028|
|Steadiness, March 31, 2019||52,580,841||$||52,581||$||–||$||258,377,036||$||(13,906,481||)||$||(14,517,230||)||$||230,005,906|
|Steadiness, December 31, 2019||52,839,441||$||52,839||$||(2,477,965||)||$||259,691,370||$||(16,685,736||)||$||(22,723,581||)||$||217,856,927|
|Inventory issuance and award||10,000||10||–||22,290||–||–||22,300|
|Overseas foreign money translation||–||–||–||–||–||(3,523,065||)||(3,523,065||)|
|Steadiness, March 31, 2020||52,849,441||$||52,849||$||(2,477,965||)||$||259,713,660||$||(18,260,382||)||$||(26,246,646||)||$||212,781,516|
KANDI TECHNOLOGIES GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|Three Months Ended|
|CASH FLOWS FROM OPERATING ACTIVITIES:|
|Changes to reconcile internet earnings to internet money supplied by working actions|
|Depreciation and amortization||2,037,045||2,258,224|
|Allowance for uncertain accounts||–||15,629|
|Share of loss after tax of the Affiliate Firm||1,102,770||9,949,158|
|Acquire from fairness dilution within the Affiliate Firm||–||(4,365,390||)|
|Change in honest worth of contingent consideration||(3,792,000||)||(89,000||)|
|Inventory compensation price||22,925||31,675|
|Modifications in working property and liabilities:|
|(Enhance) Lower In:|
|Notes receivable from the Affiliate Firm and associated celebration||–||444,682|
|Different receivables and different property||(8,734,544||)||(14,278,768||)|
|Advances to provider and prepayments and pay as you go bills||(8,311,506||)||436,768|
|Quantity due from the Affiliate Firm||4,187,038||(2,339,431||)|
|Enhance (Lower) In:|
|Different payables and accrued liabilities||(781,409||)||5,484,913|
|Revenue tax payable||29,357||(1,537,204||)|
|Web money utilized in working actions||$||(26,526,069||)||$||(14,037,641||)|
|CASH FLOWS FROM INVESTING ACTIVITIES:|
|Purchases of property, plant and gear, internet||(1,355||)||(300,704||)|
|Money obtained from fairness sale within the Affiliate Firm||11,461,646||–|
|Web money supplied by (utilized in) investing actions||$||11,460,291||$||(300,704||)|
|CASH FLOWS FROM FINANCING ACTIVITIES:|
|Proceeds from short-term financial institution loans||8,452,964||2,816,317|
|Repayments of short-term financial institution loans||–||(2,816,317||)|
|Web money supplied by financing actions||$||8,452,964||$||–|
|NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH||(6,612,814||)||(14,338,345||)|
|Impact of change price adjustments on money||(145,928||)||446,948|
|CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR||16,512,635||22,353,071|
|CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD||9,753,893||8,461,674|
|-CASH AND CASH EQUIVALENTS AT END OF PERIOD||3,719,142||3,327,013|
|-RESTRICTED CASH AT END OF PERIOD||6,034,751||5,134,661|
|SUPPLEMENTARY CASH FLOW INFORMATION|
|Revenue taxes paid||203,256||594,425|