Kandi Technologies Reports Fourth Quarter and Full Year 2013 Financial Results
March 17 2014 - 8:35AM
-EV sales achieved 193.7%
gains in Q4 -Q4 Revenue Increased 92.2% YoY to
$50.6 Million -Full Year Revenue Grew 46.5% YoY
to $94.5 Million
Kandi Technologies Group, Inc. (the 'Company' or
'Kandi') (Nasdaq:KNDI), today announced its financial results for
the fourth quarter and full year ending December 31, 2013.
Fourth Quarter 2013 Highlights
- Revenues rose 92.0% to $50.6 million from $26.3 million in the
fourth quarter of 2012. EV sales increased significantly to $40.0
million, a 193.7% jump from the same period last year. During the
quarter, the Company sold 3,568 units of pure electronic
vehicles
- Gross profit increased 152.0% to $11.4 million from $4.5
million in the same period last year
- GAAP net loss was ($14.7 million) compared to a net income of
$2.2 million in the same period of last year, mainly due to
increases of non-cash charges, such as change of fair value of
financial derivatives, higher income tax, general and
administrative expenses, and interest expenses
- Non-GAAP net income* was $4.6 million, up nearly 259%
year-over-year from $1.3 million.
Full Year 2013 Highlights
-- Total revenues grew 46.5% to $94.5 million from
$64.5 million in 2012
- ATV sales increased 62.6% to 10.4 million
- EV sales were up 144.9% to $46.6 million and the Company sold
4,694 units in the full year of 2013
- UTV sales grew 262.1% to $1.2 million
-- Gross profit increased 68.6% to $21.7 million
compared to $12.9 million in 2012 -- Gross margin increased about
three hundred basis points to 23.0% -- GAAP net loss in 2013 was
($21.1 million) due to a significant increase in the fair value of
financial derivatives, general and administrative expenses, and
interest expenses compared to net income of $6.0 million in 2012 --
Non-GAAP net income* increased 23.9% to $5.2 million from $4.2
million from the previous year
*Non-GAAP net income is defined as excluding the change of the
fair value of financial derivatives, the effects of option related
expenses, the stock award expense, the Convertible Note's interest
expense, and the effect caused by amortization of discount on
Convertible Notes. We supply non-GAAP information because we
believe it allows our investors to obtain a clearer understanding
of our operations.
Mr. Xiaoming Hu, Chairman and Chief Executive Officer of Kandi
Technologies commented, "We are very pleased to deliver an
excellent financial performance for 2013, especially a robust Q4
result. As we have predicted in the past that 2013 was truly a
breakthrough year for Kandi and our shareholders. The newly
launched Public EV Sharing System in Hangzhou has been well
received and highly recognized by our customers and various local
governments as another innovative EV business model by Kandi. This
EV sharing project was featured in the various national and
international media outlets, such as China Central Television
(CCTV), Associated Press (AP) and Bloomberg. During the year, we
have formed and completed a strategic EV joint venture with Geely
Auto which has already produced a profound impact on improving and
expanding our EV business by a better consolidation of brands,
resources and expertise to gain more market shares in China's pure
EV sector."
"With the newly unveiled EV subsidy policy in China, many of our
pending EV orders have begun to be fulfilled during the fourth
quarter in which we sold 3,568 units. For full year 2013, we
achieved our expectations for revenue growth, including that almost
50% of total revenue came from EV sales. We expect this growth
momentum will carry well into 2014. Together with JV partner,
Geeley Auto, we now have three full-scale specialized EV production
facilities, located in Shanghai, Changxing and Jinhua, which enable
us to meet the strong market demand for electric vehicles in coming
years."
"It is noteworthy that Kandi was upgraded for the NASDAQ Global
Select Market in the beginning of this year, which is another
indication of our hard work to maximize shareholders' value. We
look forward to another stellar year in 2014 as Kandi continues to
expand our EV sharing business in our existing markets as well as
other major cities in China. " Mr. Hu concluded.
KANDI TECHNOLOGIES
GROUP, INC. |
AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS
OF INCOME AND COMPREHENSIVE INCOME |
FOR THE YEARS ENDED
DECEMBER 31, 2013 AND 2012 |
|
|
|
|
|
|
|
2013 |
2012 |
REVENUES, NET |
$94,536,045 |
$64,513,670 |
|
|
|
COST OF GOODS SOLD |
(72,793,517) |
(51,620,280) |
|
|
|
GROSS PROFIT |
21,742,528 |
12,893,390 |
Research and development |
(3,728,730) |
(2,877,283) |
Selling and marketing |
(399,504) |
(455,983) |
General and administrative |
(16,056,107) |
(4,250,832) |
INCOME FROM CONTINUING
OPERATIONS |
1,558,187 |
5,309,292 |
Interest income |
1,516,477 |
2,658,104 |
Interest (expense) |
(4,395,353) |
(2,775,891) |
Government grants |
228,396 |
132,139 |
Other, net |
676,257 |
332,936 |
Change in fair value of financial
instruments |
(16,647,283) |
1,986,063 |
Share of (loss) in associated companies |
(69,056) |
(69,429) |
Share of profit after tax of JV |
(2,414,354) |
-- |
|
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME
TAXES |
(19,546,729) |
7,573,214 |
|
|
|
INCOME TAX EXPENSE |
(1,593,994) |
(1,523,735) |
|
|
|
NET (LOSS) INCOME |
(21,140,723) |
6,049,479 |
|
|
|
OTHER COMPREHENSIVE
INCOME |
|
|
|
|
|
Foreign currency translation |
2,112,902 |
424,623 |
|
|
|
COMPREHENSIVE INCOME |
$(19,027,821) |
$6,474,102 |
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING
BASIC |
34,707,973 |
29,439,328 |
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING
DILUTED |
34,707,973 |
29,677,325 |
|
|
|
NET INCOME PER SHARE,
BASIC |
$(0.61) |
$0.21 |
|
|
|
NET INCOME PER SHARE,
DILUTED |
$(0.61) |
$0.20 |
|
KANDI TECHNOLOGIES
GROUP, INC. |
AND
SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEETS |
|
|
|
ASSETS |
|
|
|
|
December 31, |
December 31, |
|
2013 |
2012 |
|
|
|
CURRENT ASSETS |
|
|
Cash and cash equivalents |
$12,762,369 |
$12,135,096 |
Restricted cash |
1,636 |
15,835,364 |
Accounts receivable |
31,370,862 |
33,557,534 |
Inventories (net of provision for slow moving
inventory of $352,734 and $56,248 as of December 31, 2013 and 2012
respectively) |
9,187,714 |
7,630,715 |
Notes receivable |
13,794,094 |
9,562,429 |
Other receivables |
556,904 |
501,448 |
Prepayments and prepaid expenses |
505,513 |
563,861 |
Due from employees |
34,272 |
40,936 |
Advances to suppliers |
8,867,074 |
4,769,825 |
Amount due from JV Company, net |
2,917,592 |
-- |
Deferred tax |
13,706 |
-- |
Deposit for acquisition |
-- |
24,397,967 |
Total Current Assets |
80,011,736 |
108,995,175 |
|
|
|
LONG-TERM ASSETS |
|
|
|
|
|
Plant and equipment, net |
29,333,516 |
35,725,740 |
Land use rights, net |
14,453,191 |
14,337,691 |
Construction in progress |
16,356 |
-- |
Deferred taxes |
81,076 |
695 |
Investment in associated company |
96,838 |
161,507 |
Investment in JV Company |
79,331,930 |
-- |
Goodwill |
322,591 |
322,591 |
Intangible assets |
659,496 |
741,591 |
Total Long-Term Assets |
124,294,994 |
51,289,815 |
|
|
|
TOTAL ASSETS |
$204,306,730 |
$160,284,990 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
December 31, |
December 31, |
|
2013 |
2012 |
CURRENT LIABILITIES |
|
|
Accounts payable |
$22,843,143 |
$8,668,478 |
Other payables and accrued expenses |
2,422,613 |
3,092,045 |
Short-term bank loans |
34,020,281 |
32,615,063 |
Customer deposits |
44,404 |
292,389 |
Notes payable |
16,683,023 |
25,332,088 |
Income tax payable |
1,362,828 |
680,253 |
Due to employees |
10,297 |
7,132 |
Due to related party |
-- |
841,251 |
Deferred taxes |
-- |
55,166 |
Financial derivative - liability |
9,256,827 |
1,513,013 |
Total Current Liabilities |
86,643,416 |
73,096,878 |
|
|
|
LONG-TERM LIABILITIES |
|
|
Deferred tax |
1,009,477 |
-- |
Bond payable |
13,084,724 |
12,666,044 |
Financial derivatives - liability |
15,042,994 |
-- |
Total Long-Term
Liabilities |
29,137,195 |
12,666,044 |
|
|
|
TOTAL LIABILITIES |
115,780,611 |
85,762,922 |
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
Common stock, $0.001 par value; 100,000,000
shares authorized; 37,012,904 and 31,696,794 shares issued and
outstanding at December 31, 2013 and December 31, 2012,
respectively |
37,013 |
31,697 |
Additional paid-in capital |
76,754,774 |
43,728,218 |
Retained earnings (the restricted portion is
$3,807,551 and $2,831,005 at December 31, 2013 and December 31,
2012, respectively) |
4,119,086 |
25,259,809 |
Accumulated other comprehensive income |
7,615,246 |
5,502,344 |
TOTAL STOCKHOLDERS' EQUITY |
88,526,119 |
74,522,068 |
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
$204,306,730 |
$160,284,990 |
|
KANDI TECHNOLOGIES
GROUP, INC. |
AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS
OF CASH FLOW |
FOR THE YEARS ENDED
DECEMBER 31, 2013 AND 2012 |
|
|
|
|
2013 |
2012 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
Net (loss) income |
$(21,140,723) |
$6,049,479 |
Adjustments to reconcile net income to net
cash provided by operating activities: |
|
|
Depreciation and amortization |
7,708,923 |
4,978,626 |
Assets impairments |
355,876 |
465,199 |
Deferred taxes |
876,255 |
92,521 |
Change in value of financial instruments |
16,647,283 |
(1,986,063) |
Loss in investment in associated company |
69,056 |
69,429 |
Share of profit after tax of JV |
2,414,354 |
-- |
Option cost |
-- |
19,053 |
|
|
|
Changes in operating assets and
liabilities, net of effects of acquisition: |
|
|
(Increase) Decrease In: |
|
|
Accounts receivable |
3,251,168 |
(20,513,099) |
Inventories |
(1,287,045) |
(904,355) |
Other receivables |
(38,491) |
1,955,055 |
Due from employees |
10,797 |
37,117 |
Prepayments and prepaid expenses |
(3,810,447) |
(4,285,489) |
Amount due from JV |
(2,877,972) |
-- |
|
|
|
Increase (Decrease) In: |
|
|
Accounts payable |
13,699,528 |
3,566,354 |
Other payables and accrued liabilities |
(746,838) |
(50,333) |
Customer deposits |
(254,151) |
(740,419) |
Income tax payable |
651,124 |
525,030 |
Due to related party |
(841,251) |
-- |
Net cash (used in) provided by
operating activities |
14,687,446 |
(10,721,895) |
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
(Purchases)/Disposal of plant and equipment,
net |
(158,830) |
(9,072,230) |
Purchases of construction in progress |
(16,134) |
-- |
Deposit for acquisition |
-- |
(24,383,529) |
Asset acquisition, net of deposit |
(39,673,000) |
-- |
Disposal of subsidiary |
64,535,177 |
-- |
Issuance of notes receivable |
(4,174,247) |
(1,011,821) |
Repayments of notes receivable |
311,844 |
29,603,171 |
Investment in JV |
(80,668,972) |
-- |
Cash acquired in acquisition |
-- |
112,551 |
Net cash provided by (used in)
investing activities |
(59,844,162) |
(4,751,858) |
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
Restricted cash |
16,135,044 |
(9,143,907) |
Proceeds from short-term bank
loans |
52,918,845 |
41,504,215 |
Repayments of short-term bank
loans |
(52,596,170) |
(45,539,128) |
Proceeds from notes
payable |
83,251,992 |
40,491,531 |
Repayments of notes
payable |
(92,609,593) |
(21,063,559) |
Proceeds from bond payable |
12,907,035 |
12,658,548 |
Repayments of bond payable |
(12,907,035) |
-- |
Fund raising through issuing
common stock and warrants |
26,387,498 |
-- |
Option exercise, stock award
& other financing |
9,659,103 |
1,258,231 |
Warrant exercise |
3,171,259 |
1,672,739 |
Common stock issued for
acquisition, net of cost of capital |
-- |
3,784,149 |
Net cash provided by financing
activities |
46,317,978 |
25,622,819 |
|
|
|
NET INCREASE IN CASH AND CASH
EQUIVALENTS |
1,161,262 |
10,149,066 |
Effect of exchange rate changes
on cash |
(533,989) |
(308,322) |
Cash and cash equivalents at
beginning of year |
12,135,096 |
2,294,352 |
CASH AND CASH EQUIVALENTS AT END OF
YEAR |
$12,762,369 |
$12,135,096 |
|
|
|
SUPPLEMENTARY CASH FLOW
INFORMATION |
|
|
Income taxes paid |
$942,870 |
$998,706 |
Interest paid |
$3,565,496 |
$2,570,691 |
Issuance of Common stock for
acquisition |
$-- |
$8,616,416 |
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (Nasdaq:KNDI), headquartered in
Jinhua, Zhejiang Province, is engaged in the research and
development, manufacturing and sales of various vehicles. Kandi has
established itself as the one of the world's largest manufacturer
of pure electric vehicles (EVs), Go-Kart vehicles, and tricycle and
utility vehicles (UTVs), among others. More information can be
viewed at its corporate website is http://www.kandivehicle.com.
Safe Harbor Statement
This press release contains certain statements that may include
"forward-looking statements." All statements other than statements
of historical fact included herein are "forward-looking
statements." These forward-looking statements are often identified
by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involving known and unknown risks
and uncertainties. Although the Company believes that the
expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. You should not
place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company's
actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including the risk factors discussed in the Company's
periodic reports that are filed with the Securities and Exchange
Commission and available on the SEC's website (http://www.sec.gov).
All forward-looking statements attributable to the Company or
persons acting on its behalf are expressly qualified in their
entirety by these risk factors. Other than as required under the
securities laws, the Company does not assume a duty to update these
forward-looking statements.
CONTACT: Kandi Technologies Group, Inc.
Ms. Kewa Luo
Phone: 1-212-551-3610
Email: IR@kandigroup.com
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