Kandi Technologies Reports First Quarter 2014 Financial Results and Revenue for EV Sales More Than Tripled
May 12 2014 - 9:33AM
-Q1 Revenue
Increased 174.0% YoY to $40.2
Million-
-EV Sales Rose 384.5% YoY to $8.4
Million-
Kandi Technologies Group, Inc. (the "Company" or "Kandi")
(Nasdaq:KNDI), today reported its financial results for the first
quarter ended March 31, 2014.
For the three months ended March 31, 2014:
- Revenues grew 174.0% to $40.2 million from $14.7 million in the
first quarter of 2013
- Electric Vehicle ("EV") products revenues increased
significantly by 384.5% to $8.4 million from $1.7 million in the
first quarter of 2013
- Revenue for EV Parts including battery packs was $25.0 million
in the first quarter of 2014. The Company started this business in
the first quarter of 2014.
- All-terrain Vehicle ("ATV") sales grew slightly to $3.3 million
from $2.5 million in the first quarter of 2013
- Gross profit grew 44.1% to $4.9 million from $3.4 million in
the first quarter of 2013
- The income for the JV Company (Kandi Electric Vehicles Group
Co., Ltd., a joint venture company established by the Company's
wholly owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. with
Shanghai Maple Guorun Automobile Co., Ltd. ("Shanghai Maple"), a
99%-owned subsidiary of Geely Automobile Holdings Ltd.) was $1.7
million and the profit for Kandi was $0.8 million in the first
quarter of 2014
- GAAP net loss for the first quarter was $14.1 million compared
to a net income of $2.2 million in the same period last year due to
changes relating to the fair value of financial derivatives
resulted from the relatively high stock price during the first
quarter period, stock awards to management, and increases in our
general & administrative expenses
- Non-GAAP net income*, excluding the effects of the stock award
expense and the change of the fair value of financial derivatives,
was $1.6 million, an increase of 30.4% compared with $1.3 million
in the first quarter of 2013
- Cash, cash equivalents totaled $20.5 million for the first
quarter, a 60.2% increase from $12.8 million at the end of
2013
*Non-GAAP net income in this context means the net income
excluding option-related expenses, stock award expenses, and the
effects caused by the change of fair value of financial
derivatives. We furnish non-GAAP information because we believe it
allows our investors to obtain a clearer understanding of our
operations.
Mr. Xiaoming Hu, Chairman and CEO of the Company commented,
"During the first quarter, Kandi has once again experienced the
significant growth in EV related business sales. We are satisfied
with the financial results we have achieved in the slowest quarter
of the year. The Public EV Sharing Project in Hangzhou is making
modest progress and several other cities have approached us to
discuss implementation of the project in their cities. We are very
confident about the continuous high growth of our EV business.
Through our partnership with Geely and our advanced production
capabilities, we soon expect to become the leading fully integrated
provider of pure EVs in China."
KANDI TECHNOLOGIES
GROUP, INC. |
AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME
(LOSS) |
|
|
|
|
Three
Months Ended |
|
March 31, 2014 |
March 31, 2013 |
REVENUES, NET |
$ 40,171,304 |
$ 14,662,521 |
|
|
|
COST OF GOODS SOLD |
(35,310,895) |
(11,290,490) |
|
|
|
GROSS PROFIT |
4,860,409 |
3,372,031 |
Research and development |
(1,172,257) |
(689,665) |
Selling and marketing |
(71,257) |
(89,614) |
General and administrative |
(6,470,766) |
(692,964) |
|
|
|
(LOSS) INCOME FROM CONTINUING
OPERATIONS |
(2,853,871) |
1,899,788 |
Interest (expense) income, net |
(471,180) |
(670,208) |
Change in fair value of financial
instruments |
(12,314,171) |
990,395 |
Government grants |
-- |
-- |
Share of (loss) in associated companies |
(15,805) |
(14,023) |
Share of profit after tax of JV |
1,728,356 |
-- |
Other income, net |
59,580 |
122,365 |
|
|
|
(LOSS) INCOME BEFORE INCOME
TAXES |
(13,867,091) |
2,328,317 |
|
|
|
INCOME TAX EXPENSE |
(219,069) |
(91,444) |
|
|
|
NET (LOSS) INCOME |
(14,086,160) |
2,236,873 |
|
|
|
OTHER COMPREHENSIVE
INCOME |
|
|
Foreign currency translation |
(1,211,116) |
584,915 |
|
|
|
|
|
|
COMPREHENSIVE INCOME
(LOSS) |
$ (15,297,276) |
$ 2,821,788 |
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING
BASIC |
39,597,785 |
32,298,832 |
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING
DILUTED |
39,597,785 |
32,539,339 |
|
|
|
NET (LOSS) INCOME PER SHARE,
BASIC |
$ (0.36) |
$ 0.07 |
|
|
|
NET (LOSS) INCOME PER SHARE,
DILUTED |
$ (0.36) |
$ 0.07 |
|
|
|
|
|
|
KANDI TECHNOLOGIES
GROUP, INC. |
AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
|
|
|
ASSETS |
|
|
|
|
March 31, |
December 31, |
|
2014 |
2013 |
|
(Unaudited) |
|
CURRENT ASSETS |
|
|
Cash and cash equivalents |
$ 20,498,275 |
$ 12,762,369 |
Restricted cash |
-- |
1,636 |
Accounts receivable |
22,674,057 |
31,370,862 |
Inventories (net of provision
for slow moving inventory of $349,850 and $352,734 as of March 31,
2014 and December 31, 2013, respectively |
13,646,998 |
9,187,714 |
Notes receivable |
35,078,977 |
13,794,094 |
Other receivables |
705,771 |
556,904 |
Prepayments and prepaid expenses |
461,395 |
505,513 |
Due from employees |
42,759 |
34,272 |
Advances to suppliers |
16,470,855 |
8,867,074 |
Amount due from JV Company, net |
21,625,758 |
2,917,592 |
Deferred tax |
252,684 |
13,706 |
|
|
|
Total Current Assets |
131,457,529 |
80,011,736 |
|
|
|
LONG-TERM ASSETS |
|
|
|
|
|
Plant and equipment, net |
27,945,044 |
29,333,516 |
Land use rights, net |
14,246,146 |
14,453,191 |
Construction in progress |
16,222 |
16,356 |
Deferred taxes |
-- |
81,076 |
Investment in associated company |
80,356 |
96,838 |
Investment in JV Company |
80,399,179 |
79,331,930 |
Goodwill |
322,591 |
322,591 |
Intangible assets |
638,972 |
659,496 |
Total Long-Term Assets |
123,648,510 |
124,294,994 |
|
|
|
TOTAL ASSETS |
$ 255,106,039 |
$ 204,306,730 |
|
|
|
|
|
|
KANDI TECHNOLOGIES
GROUP, INC. |
AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
|
|
|
|
March 31, |
December 31, |
|
2014 |
2013 |
|
(Unaudited) |
|
CURRENT LIABILITIES |
|
|
Accounts payable |
$ 44,089,700 |
$ 22,843,143 |
Other payables and accrued expenses |
3,332,258 |
2,422,613 |
Short-term bank loans |
33,742,132 |
34,020,281 |
Customer deposits |
135,398 |
44,404 |
Notes payable |
14,599,961 |
16,683,023 |
Income tax payable |
542,224 |
1,362,828 |
Due to employees |
9,645 |
10,297 |
Due to related party |
-- |
-- |
Deferred taxes |
21,626 |
-- |
Financial derivate - liability |
21,332,440 |
9,256,827 |
Total Current Liabilities |
117,805,384 |
86,643,416 |
|
|
|
LONG-TERM LIABILITIES |
|
|
Deferred tax |
1,194,424 |
1,009,477 |
Bond payable |
12,977,743 |
13,084,724 |
Financial derivatives - liability |
4,014,614 |
15,042,994 |
Total Long-Term
Liabilities |
18,186,781 |
29,137,195 |
|
|
|
TOTAL LIABILITIES |
135,992,165 |
115,780,611 |
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
Common stock, $0.001 par value;
100,000,000 shares authorized; 40,721,321 and 37,012,904 shares
issued and outstanding at March 31, 2014 and December 31, 2013,
respectively |
40,721 |
37,013 |
Additional paid-in capital |
122,636,097 |
76,754,774 |
Retained earnings (the restricted portion is
$3,807,551 and $3,807,551 at March 31, 2014 and December 31, 2013,
respectively) |
(9,967,074) |
4,119,086 |
Accumulated other comprehensive income |
6,404,130 |
7,615,246 |
TOTAL STOCKHOLDERS' EQUITY |
119,113,874 |
88,526,119 |
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
$ 255,106,039 |
$ 204,306,730 |
|
|
|
|
|
|
KANDI TECHNOLOGIES
GROUP, INC. |
AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
|
|
|
|
Three
Months Ended March 31 |
|
2014 |
2013 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
Net (loss) income |
$ (14,086,160) |
$ 2,236,873 |
Adjustments to reconcile net
(loss) income to net cash (used in) provided by operating
activities: |
|
|
Depreciation and
amortization |
1,386,527 |
2,109,977 |
Deferred taxes |
44,801 |
(144,911) |
Change of derivative
instrument's fair value |
12,314,171 |
(990,395) |
Loss in investment in
associated company |
15,805 |
14,023 |
Share of (profit) after tax of
JV |
(1,728,356) |
-- |
|
|
|
Changes in operating assets and
liabilities: |
|
|
(Increase) Decrease In: |
|
|
Accounts receivable |
8,501,760 |
(4,440,829) |
Inventories |
(4,567,411) |
(2,901,362) |
Other receivables and prepaid
expenses |
(154,488) |
(88,166) |
Due from employees |
(9,402) |
(2,418) |
Prepayments and prepaid
expenses |
(7,691,861) |
2,717,021 |
Amount due from JV |
(18,868,380) |
-- |
|
|
|
Increase (Decrease) In: |
|
|
Accounts payable |
21,589,347 |
1,990,665 |
Other payables and accrued
liabilities |
930,528 |
(85,177) |
Customer deposits |
92,022 |
(268,344) |
Income tax payable |
(815,354) |
(425,109) |
Net cash (used in) provided by
operating activities |
$ (3,046,451) |
$ (278,152) |
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
Purchases of plant and
equipment |
(119,476) |
(8,698) |
Issuance of notes
receivable |
(21,553,430) |
(1,940,690) |
Deposit for acquisition |
-- |
(14,103,172) |
Net cash provided by (used in)
investing activities |
$ (21,672,906) |
$ (16,052,560) |
|
|
|
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 one of the world's largest manufacturers 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.
Kandi routinely posts important information on its website.
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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