Kandi Technologies Reports First Quarter 2015 Financial Results
May 11 2015 - 8:03AM
– Q1 EV Parts Sales Increased 71.3% YoY to
43.0 Million
– Q1 GAAP Net Income Increased to $6.1
Million from ($14.1) Million in Q1 2014
– Q1 GAAP EPS increased to $0.13 from
($0.36) in Q1 2014
Kandi Technologies Group, Inc. (the "Company" or
"Kandi") (Nasdaq:KNDI), today announced its financial results for
the quarter ended March 31, 2015.
2015 First Quarter Highlights
- Total revenues grew 9.0% to $43.8 million for the first quarter
of 2015 from $40.2 million for the first quarter of 2014;
- Electric Vehicle ("EV") Parts sales increased by 71.3% to $43.0
million for the first quarter of 2015 compared to $25.1 million in
the same period of 2014;
- The first quarter sales for our joint venture company, Kandi
Electric Vehicles Group Co., Ltd. (the "JV Company")1, were $30.6
million, with net income of $0.8 million. Based on Kandi's 50%
equity ownership in the JV Company, Kandi recorded $0.5 million in
net income (after tax and intra-entity elimination) for the first
quarter of 2015;
- The JV Company sold 1,670 EV products during the first quarter
of 2015, 37.4% increase compared to 1,215 EV products sold in the
same quarter of 2014;
- GAAP net income for the first quarter of 2015 was $6.1 million,
or approximately $0.13 per fully diluted share, increased from a
net loss of $14.1 million, or approximately ($0.36) in the first
quarter of 2014;
- Non-GAAP adjusted net income2, which excludes stock award
expense and change in the fair value of financial derivatives, was
$3.4 million, or approximately $0.07 per fully diluted share, a
108.1% increase from $1.6 million in the first quarter of 2014;
- Working capital surplus was $40.9 million as of March 31, 2015,
compared to $39.2 million as of December 31, 2014;
- Cash, cash equivalents and restricted cash totaled $41.1
million as of March 31, 2015 compared to $39.4 million as of
December 31, 2014;
Mr. Xiaoming Hu, Chairman and Chief Executive Officer of Kandi
Technologies, commented: "We achieved solid growth in the first
quarter of 2015 throughout our business, including the car-share
projects, which continues to be a key growth driver for the Company
this year. At the same time, our JV Company has started direct
sales to consumers in April 2015, in order to meet the fast growing
market demand in China, with great support from the Government,
which will contribute to the Company's future growth and
profitability."
"We are pleased with the good financial results in the first
quarter of 2015, compared to the same quarter last year," added Mr.
Wang Cheng, Chief Financial Officer of Kandi Technologies. "We had
both revenue growth and margin improvement, which contributed to
our net profits. We will continue to implement our cost reduction
program throughout the Company and leverage internal production
efficiencies, in order to generate stable profitability over the
long term."
First Quarter 2015 Conference Call Details
The Company has scheduled a conference call and live webcast to
discuss the financial results at 10:00 AM (U.S. EDT) on May 11,
2015 (10:00 PM Beijing time on May 11, 2015). Mr. Hu Xiaoming,
Chief Executive Officer and Mr. Wang Cheng (Henry), Chief Financial
Officer, will deliver prepared remarks, 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
- Conference ID: 13609244
- Webcast and replay:
http://public.viavid.com/index.php?id=114525
The live audio webcast of the call can also be accessed by
visiting Kandi's Investor Relations website at
http://en.kandivehicle.com in Investor Relations section. An
archive of the webcast will be available on the Company's website
following the live call.
1 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 Guorun"), a 99%-owned subsidiary of
Geely Automobile Holdings Ltd. ("Geely Auto")
2 Non-GAAP measures, including the Non-GAAP net income and
Non-GAAP EPS are defined as the financial measures excluding the
change of the fair value of financial derivatives and the effects
of the stock award expense. We supply non-GAAP information because
we believe it allows our investors to obtain a clearer
understanding of our operations. Any non-GAAP measures should not
be considered as a substitute for, and should only be read in
conjunction with, measures of financial performance prepared in
accordance with GAAP.
KANDI TECHNOLOGIES
GROUP, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (LOSS) AND |
COMPREHENSIVE INCOME
(LOSS) |
|
Three
Months Ended |
|
March 31, 2015 |
March 31, 2014 |
|
|
|
REVENUES, NET |
$ 43,781,086 |
$ 40,171,304 |
COST OF GOODS SOLD |
37,410,353 |
35,310,895 |
|
|
|
GROSS PROFIT |
6,370,733 |
4,860,409 |
OPERATING EXPENSES: |
|
|
Research and development |
571,020 |
1,172,257 |
Selling and marketing |
113,895 |
71,257 |
General and administrative |
3,780,648 |
6,470,766 |
Total Operating
Expenses |
4,465,563 |
7,714,280 |
|
|
|
INCOME FROM OPERATIONS |
1,905,170 |
(2,853,871) |
OTHER INCOME (EXPENSE): |
|
|
Interest income |
590,480 |
483,293 |
Interest (expense) |
(598,591) |
(954,473) |
Change in fair value of financial
instruments |
4,750,300 |
(12,314,171) |
Government grants |
-- |
-- |
Share of (loss) in associated companies |
-- |
(15,805) |
Share of profit after tax of JV |
469,356 |
1,728,356 |
Other income, net |
23,847 |
59,580 |
Total other income (expense),
net |
5,235,392 |
(11,013,220) |
|
|
|
INCOME (LOSS) BEFORE INCOME
TAXES |
7,140,562 |
(13,867,091) |
|
|
|
INCOME TAX EXPENSE |
(1,008,909) |
(219,069) |
|
|
|
NET INCOME (LOSS) |
6,131,653 |
(14,086,160) |
|
|
|
OTHER COMPREHENSIVE INCOME |
|
|
Foreign currency translation |
493,211 |
(1,211,116) |
|
|
|
COMPREHENSIVE INCOME (LOSS) |
$ 6,624,864 |
$ (15,297,276) |
WEIGHTED AVERAGE SHARES OUTSTANDING
BASIC |
46,281,299 |
39,597,785 |
WEIGHTED AVERAGE SHARES OUTSTANDING
DILUTED |
46,397,993 |
39,597,785 |
|
|
|
NET INCOME (LOSS) PER SHARE, BASIC |
$ 0.13 |
$ (0.36) |
NET INCOME (LOSS) PER SHARE, DILUTED
|
$ 0.13 |
$ (0.36) |
|
|
KANDI TECHNOLOGIES
GROUP, INC. |
AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
|
ASSETS |
|
|
March 31, |
December 31, |
|
2015 |
2014 |
|
|
|
Current assets |
|
|
Cash on cash equivalents |
$ 15,635,658 |
$ 26,379,460 |
Restricted cash |
25,454,249 |
13,000,731 |
Accounts receivable |
28,679,895 |
15,736,805 |
Inventories (net of provision for slow moving
inventory of 316,686 and 315,584 as of March 31, 2015 and December
31, 2014, |
26,742,009 |
15,403,840 |
respectively |
|
|
Notes receivable |
10,739,366 |
9,060,441 |
Other receivables |
323,925 |
238,567 |
Prepayments and prepaid expense |
462,058 |
120,761 |
Due from employees |
40,084 |
34,475 |
Advances to suppliers |
7,112,895 |
6,901,505 |
Amount due from JV Company, net |
71,267,257 |
51,450,612 |
Deferred taxes assets |
|
-- |
TOTAL CURRENT ASSETS |
186,457,396 |
138,327,197 |
|
|
|
LONG-TERM ASSETS |
|
|
Plant and equipment, net |
25,174,878 |
26,215,356 |
Land use rights, net |
15,606,056 |
15,649,152 |
Construction in progress |
58,753,641 |
58,510,051 |
Deferred taxes assets |
-- |
-- |
Investment in associated company |
-- |
-- |
Investment in JV Company |
84,070,778 |
83,309,095 |
Goodwill |
322,591 |
322,591 |
Intangible assets |
556,877 |
577,401 |
Other long term assets |
163,076 |
162,509 |
TOTAL Long-Term Assets |
184,647,897 |
184,746,155 |
|
|
|
TOTAL ASSETS |
$ 371,105,293 |
$ 323,073,352 |
|
|
KANDI TECHNOLOGIES
GROUP, INC. |
AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
March 31, |
December 31, |
|
2015 |
2014 |
CURRENT LIABILITIES |
|
|
Accounts payables |
$ 77,954,005 |
$ 45,772,481 |
Other payables and accrued expenses |
3,803,523 |
5,101,740 |
Short-term loans |
42,073,678 |
35,589,502 |
Customer deposits |
2,641,274 |
2,630,723 |
Notes payable |
12,408,147 |
5,702,121 |
Income tax payable |
1,711,161 |
1,835,685 |
Due to employees |
11,071 |
15,787 |
Deferred taxes liabilities |
132,399 |
230,864 |
Financial derivate - liability |
4,800,169 |
2,245,610 |
Total Current
Liabilities |
145,535,427 |
99,124,513 |
|
|
|
LONG-TERM LIABILITIES |
|
|
Deferred taxes liabilities |
2,543,821 |
2,266,725 |
Bond payable |
-- |
-- |
Financial derivate - liability |
2,792,416 |
10,097,275 |
Total Long-Term
Liabilities |
5,336,237 |
12,364,000 |
|
|
|
TOTAL LIABILITIES |
150,871,664 |
111,488,513 |
|
|
|
STOCKHOLDER'S EQUITY |
|
|
Common stock, $0.001 par value; 100,000,000
shares authorized; 46,284,855 and 46,274,855 shares issued and
outstanding at March 31,2015 and December 31,2014,
respectively |
46,285 |
46,275 |
Additional paid-in capital |
192,281,953 |
190,258,037 |
|
|
|
Retained earnings (the restricted portion is
$4,172,324 and $4,172,324 at March 31,2015 and December
31,2014, respectively) |
22,522,077 |
16,390,424 |
Accumulated other comprehensive
income(loss) |
5,383,314 |
4,890,103 |
TOTAL STOCKHOLDERS'
EQUITY |
220,233,629 |
211,584,839 |
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY |
$ 371,105,293 |
$ 323,073,352 |
|
|
KANDI TECHNOLOGIES
GROUP, INC. |
AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
|
|
Three Months
Ended |
|
March 31, 2015 |
March 31, 2014 |
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
Net income(loss) |
$ 6,131,653 |
$ (14,086,160) |
Adjustments to reconcile net income to net
cash provided by operating activities |
|
|
Depreciation and amortization |
1,479,384 |
1,386,527 |
Assets Impairments |
-- |
-- |
Deferred taxes |
-- |
44,801 |
Change in fair value of financial
instruments |
(4,750,300) |
12,314,171 |
Loss (income) in investment in associated
companies |
-- |
15,805 |
Share of profit after tax of JV Company |
(469,356) |
(1,728,356) |
Decrease in reserve for fixed assets |
-- |
-- |
Stock Compensation cost |
2,049,683 |
-- |
|
|
|
Changes in operating assets and
liabilities, net of effects of
acquisition: |
|
|
(Increase) Decrease In: |
|
|
Accounts receivable |
(12,844,602) |
8,501,760 |
Inventories |
(11,246,265) |
(4,567,411) |
Other receivables |
(65,602) |
(154,488) |
Due from employee |
(10,225) |
(9,402) |
Prepayments and prepaid expenses |
(527,687) |
(7,691,861) |
Amount due from JV Company |
(19,570,708) |
(18,868,380) |
|
|
|
Increase (Decrease) In: |
|
|
Accounts payable |
31,915,168 |
21,589,347 |
Other payables and accrued liabilities |
(1,438,571) |
930,528 |
Customer deposits |
1,365 |
92,022 |
Income Tax payable |
(130,488) |
(815,354) |
Due to related party |
-- |
-- |
Net cash (used in ) provided by
operating activities |
$ (9,476,551) |
$ (3,046,451) |
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
(Purchases)/Disposal of plant and equipment,
net |
(233,343) |
(119,476) |
Purchases of land use rights |
-- |
-- |
Purchases of construction in progress |
(39,266) |
-- |
Deposit for acquisition |
-- |
-- |
Asset acquisition, net of deposit |
-- |
-- |
Issuance of notes receivable |
(4,225,884) |
(21,553,430) |
Repayment of notes receivable |
2,584,147 |
-- |
Investment in JV Company |
-- |
-- |
Cash acquired in acquisition |
-- |
-- |
Net cash provided by (used in)
investing activities |
$ (1,914,346) |
$ (21,672,906) |
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
Restricted cash |
(12,366,201) |
1,634 |
Proceeds from short-term bank loans |
6,338,475 |
817,013 |
Repayments of short-term bank loans |
-- |
(817,013) |
Proceeds from notes payable |
6,663,525 |
(1,960,832) |
Fund raising through issuing common stock
and warrants |
-- |
11,067,734 |
Option exerciseCstock awards & other
financing |
-- |
3,066,081 |
Warrant exercise |
-- |
20,484,279 |
Common stock issued for acquisition, net
of cost of capital |
|
|
Net cash (used in) provided by
financing activities |
635,799 |
32,658,896 |
|
|
|
NET INCREASE IN CASH AND CASH
EQUIVALENTS |
(10,755,098) |
7,939,539 |
|
|
|
Effect of exchange rate changes on cash |
11,296 |
(203,633) |
Cash and cash equivalents at beginning of
year |
26,379,460 |
12,762,369 |
|
|
|
CASH AND CASH EQUIVALENTS AT END
OF PERIOD |
15,635,658 |
20,498,275 |
|
|
|
SUPPLEMENTARY CASH FLOW
INFORMATION |
|
|
Income taxes paid |
1,139,397 |
1,034,422 |
Interest paid |
577,874 |
580,044 |
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 vehicle products.
Kandi has established itself as the one of China's leading
manufacturers of pure electric vehicle ("EV") products (through its
joint venture), EV parts and off road vehicles. More information
can be viewed at its corporate website is
http://www.kandivehicle.com. The Company 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: Company Contact:
Ms. Kewa Luo
Kandi Technologies Group, Inc.
Phone: 1-212-551-3610
Email: IR@kandigroup.com
IR Contact:
Mr. Matthew Abenante
The Piacente Group
Phone: 1-212-481-2050
Email: kandi@tpg-ir.com
Kandi Technolgies (NASDAQ:KNDI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Kandi Technolgies (NASDAQ:KNDI)
Historical Stock Chart
From Apr 2023 to Apr 2024