- Q4 EV parts sales increased 51.6% YoY to $57.5
million- 2015 EV parts sales increased 68.4% YoY to $196.1 million-
Q4 the JV Company sold 12,100 EV products, a 231.0% increase YoY-
2015 the JV Company sold 24,220 EV products, a 121.5% increase YoY-
Q4 Non-GAAP net income increased 250.9% YoY to $13.9 million, or
$0.30 EPS-Full year Non-GAAP net income increased 100.9% YoY to
$28.5 million, or $0.61 EPS
Kandi Technologies Group, Inc. (the “Company,”
“we” or “Kandi”) (NASDAQ:KNDI), announced a correction to its press
release issued on Monday, March 14, 2016 entitled, "Kandi
Technologies Reports Fourth Quarter and Full Year 2015 Financial
Results."
In the press release issued at 7:00 am ET, the
year-over-year percentage changes for Net Revenues, Gross Profit,
and Net Income included in the full year 2015 income statement
table under the JV Company Financial Results were miscalculated.
The correct calculation included in the income statement table of
the JV Company is as follows:
|
|
|
2015 |
|
|
2014 |
|
Y-o-Y% |
|
Net Revenues (US$mln) |
$ |
362.7 |
|
$ |
215.5 |
|
|
68.3 |
% |
|
Gross Profit (US$mln) |
$ |
59.6 |
|
$ |
41.9 |
|
|
42.4 |
% |
|
Gross Margin |
|
16.4 |
% |
|
19.4 |
% |
|
- |
|
|
Net Income |
$ |
23.3 |
|
$ |
7.5 |
|
|
209.9 |
% |
|
% of Net revenues |
|
6.4 |
% |
|
3.5 |
% |
|
- |
|
| |
|
|
|
|
|
|
|
|
|
The complete press release with corrected
information is as follows:
JINHUA, CHINA-- (March 14, 2016) - Kandi
Technologies Group, Inc. (the “Company,” “we” or “Kandi”)
(NASDAQ GS: KNDI), today announced its financial results for the
fourth quarter and year ended December 31, 2015
Fourth Quarter Highlights
- Total revenues grew 11.2% to $58.8 million for the fourth
quarter of 2015, from $52.9 million for the same period of
2014.
- Electric Vehicle (“EV”) parts sales increased 51.6% to $57.5
million for the fourth quarter of 2015, compared with $37.9 million
in the same period of 2014.
- Kandi Electric Vehicles Group Co., Ltd. (the "JV Company"),
sold 12,100 EV products in the fourth quarter, a 231.0% increase
compared with the same period last year. Total EV products sales
comprised 6,474 EV products to the Micro Public Transportation
(“MPT”) program and 5,626 EV products through the distribution
channel under the direct sales program.
- GAAP net income for the fourth quarter of 2015 was $0.8
million, or $0.02 per fully diluted share, compared with $1.7
million, or $0.07 per fully diluted share in the same period of
2014.
- Non-GAAP adjusted net income1, which excludes stock award
expenses and changes in the fair value of financial derivatives,
was $13.9 million in the fourth quarter of 2015, compared with $4.0
million of the same period of 2014. Non-GAAP adjusted earnings per
share1 was approximately $0.30 per fully diluted share for the
fourth quarter of 2015 compared with $0.09 per fully diluted share
for the same quarter of 2014.
Full Year 2015 Highlights
- Total revenues grew 18.1% to $201.1 million in 2015, from
$170.2 million in 2014.
- EV parts sales increased 68.4% to $196.1 million in 2015,
compared with $116.4 million in 2014.
- The JV Company sold 24,220 EV products in 2015, a 121.5%
increase compared with 2014. Total EV products sales comprised
14,947 EV products to the MPT program and 9,273 EV products through
the distribution channel under the direct sales program.
- GAAP net income in 2015 was $14.7 million, or $0.31 per fully
diluted share, compared with $12.3 million, or $0.29 per fully
diluted share in 2014.
- Non-GAAP adjusted net income1, which excludes stock award
expenses and changes in the fair value of financial derivatives,
was $28.5 million in 2015, compared with $14.2 million in 2014.
Non-GAAP adjusted earnings per share1 was approximately $0.61 per
fully diluted share for the full year of 2015 compared with $0.33
per fully diluted share for the same quarter of 2014.
- Working capital surplus was $59.9 million as of December 31,
2015. Cash, cash equivalents and restricted cash totaled $32.9
million as of December 31, 2015.
“Our outstanding results in 2015 include
exceeding revenue and EV sales targets with the JV Company by
selling 24,220 EV products, a 121.5% increase year-over-year,”
commented Mr. Hu Xiaoming, Chairman and Chief Executive Officer of
Kandi, “As the JV Company became China’s top seller for pure EV
products in 2015, its EV products received extremely positive
market recognition, highlighted by model K17 named as China 2015
Pure Electric Passenger Vehicle of the Year at the 6th Global New
Energy Vehicle Conference. The direct sales program was launched in
the second quarter and achieved 9,273 in EV products sales in 2015
through the distribution channel under this program, accounting for
38.3% of total EV products sold during the year. We are confident
in being able to increase the contribution of direct sales as a
percentage of total sales in 2016.”
“China’s government has continued to strongly
support the growth of the EV industry,” Mr. Hu continued. “Most
recently through an industry-wide subsidy investigation, the
government is committed to maintaining the healthy development of
the EV industry, which will benefit scaled EV products
manufacturers like the JV Company. Meanwhile, the central
government has extended its continuous support and confidence in
developing the new energy vehicle (NEV) industry by enacting
additional policies, including reducing traffic controls and
purchase quotas on NEVs, encouraging government purchases and
promoting EV car-share programs. By focusing on our unique growth
engines, which are the rapid expansion of the Micro Public
Transportation program and the direct sales program through the
distribution channel, we look forward to leading the growth of
China’s EV industry in 2016.”
“Our significant achievements in 2015 include
excellent financial results, particularly with sales and gross
margin meeting our expectation,” added Mr. Wang Cheng (Henry),
Chief Financial Officer of Kandi, “During the year, key milestones,
including the successful launch of the direct sales program and the
expansion of the MPT program to 16 cities were accomplished. With a
solid foundation built for our EV business, we believe that the
Company will continue to achieve strong financial performance in
2016.”
Fourth Quarter and Full Year 2015
Financial Results
Net Revenues and Gross Profit
|
|
4Q15 |
3Q15 |
4Q14 |
Q-o-Q% |
Y-o-Y% |
|
Net Revenues (US$mln) |
$ |
58.8 |
|
$ |
50.5 |
|
$ |
52.9 |
|
|
16.4 |
% |
|
11.2 |
% |
|
Gross Profit (US$mln) |
$ |
8.4 |
|
$ |
7.1 |
|
$ |
5.8 |
|
|
18.6 |
% |
|
45.2 |
% |
|
Gross Margin |
|
14.4 |
% |
|
14.1 |
% |
|
11.0 |
% |
|
- |
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues for the fourth quarter increased
16.4% sequentially, and 11.2% from the year-ago period. The
increase in net revenues was mainly due to growth of EV products
sales from the JV Company. Gross margin in the fourth quarter
increased to 14.4%, compared with 11.0% in the same quarter last
year. Margin increase was a result of cost control from
battery packing production.
|
|
|
2015 |
|
|
2014 |
|
Y-o-Y% |
|
Net Revenues (US$mln) |
$ |
201.1 |
|
$ |
170.2 |
|
|
18.1 |
% |
|
Gross Profit (US$mln) |
$ |
28.4 |
|
$ |
23.4 |
|
|
21.4 |
% |
|
Gross Margin |
|
14.1 |
% |
|
13.7 |
% |
|
- |
|
| |
|
|
|
|
|
|
|
|
|
Net revenues for the full year 2015 increased
18.1% from 2014. The increase in net revenues was mainly due to
growth of EV products sales from the JV Company. Gross margin for
the full year 2015 increased to 14.1%, compared with 13.7% in 2014.
Margin increase was a result of cost control from battery packing
production.
Operating Income (Loss)
|
|
4Q15 |
3Q15 |
4Q14 |
Q-o-Q% |
Y-o-Y% |
|
Operating Expenses (US$mln) |
$ |
13.9 |
|
$ |
9.6 |
|
$ |
3.0 |
|
|
45.0 |
% |
|
367.4 |
% |
|
Operating Income (Loss) (US$mln) |
($ |
5.4 |
) |
($ |
2.4 |
) |
$ |
2.8 |
|
|
121.9 |
% |
|
-290.1 |
% |
|
Operating Margin |
|
-9.2 |
% |
|
-4.8 |
% |
|
5.4 |
% |
|
- |
|
|
- |
|
|
Operating Income (Loss) (US$mln) (Non-GAAP) |
$ |
4.4 |
|
$ |
4.6 |
|
$ |
4.9 |
|
|
-4.0 |
% |
|
-9.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses in the fourth quarter
were $13.9 million, compared with $3.0 million in the same quarter
of 2014. The increase in total operating expenses was due to
increased stock compensation expense, which was $9.8 million in the
fourth quarter, compared with $2.0 million in the same quarter last
year. Excluding stock compensation, operation expenses in the
fourth quarter of 2015 were $4.0 million, compared with $1.0
million in the same quarter last year. The increase was mainly due
to research and development expenses for new EV product models,
such as K12 and K17, and for new battery packs, as well as the
accrual for compensation expense.
|
|
|
2015 |
|
|
2014 |
|
Y-o-Y% |
|
Operating Expenses (US$mln) |
$ |
32.4 |
|
$ |
18.2 |
|
|
78.3 |
% |
|
Operating Income (Loss) (US$mln) |
($ |
4.0 |
) |
$ |
5.2 |
|
|
-175.4 |
% |
|
Operating Margin |
|
-2.0 |
% |
|
3.1 |
% |
|
-163.8 |
% |
|
Operating Income (Loss) (US$mln) (Non-GAAP) |
$ |
18.4 |
|
$ |
13.7 |
|
|
34.5 |
% |
| |
|
|
|
|
|
|
|
|
|
Total operating expenses in 2015 were $32.4
million, compared with $18.2 million in 2014. The significant
increase in total operating expenses was due to increased stock
compensation expense in 2015, which was $22.4 million, compared
with $8.5 million in 2014. Excluding stock compensation, operation
expenses in 2015 were $10.0 million, slightly higher than $9.7
million in 2014.
GAAP Net Income
|
|
4Q15 |
3Q15 |
4Q14 |
Q-o-Q% |
Y-o-Y% |
|
Net Income (US$mln) |
$ |
0.8 |
|
$ |
2.3 |
|
$ |
1.7 |
|
|
-67.3 |
% |
|
-54.1 |
% |
|
Earnings per Weighted Average Common Share |
$ |
0.02 |
|
$ |
0.05 |
|
$ |
0.07 |
|
|
- |
|
|
- |
|
|
Earnings per Weighted Average Diluted Share |
$ |
0.02 |
|
$ |
0.05 |
|
$ |
0.07 |
|
|
- |
|
|
- |
|
|
Stock award expenses |
$ |
9.8 |
|
$ |
7.0 |
|
$ |
2.0 |
|
|
39.7 |
% |
|
390.6 |
% |
|
Change of the fair value of financial derivatives |
$ |
3.3 |
|
($ |
3.0 |
) |
$ |
0.3 |
|
|
-207.7 |
% |
|
1058.7 |
% |
|
Non-GAAP net income from continuing operations |
$ |
13.9 |
|
$ |
6.3 |
|
$ |
4.0 |
|
|
119.4 |
% |
|
250.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income was $0.8 million in the fourth quarter,
compared with $1.7 million in the same quarter of 2014. Net
income was affected by significant increases in stock compensation
expense and the change of the fair value of financial derivatives,
which together were $10.8 million more in the fourth quarter of
2015 than in the fourth quarter of 2014. Non-GAAP net income in the
fourth quarter was $13.9 million, a 250.9% increase from $4.0
million in the same quarter of 2014, mainly due to revenue growth,
margin improvement, and the increased net income contribution from
the JV Company.
|
|
|
2015 |
|
|
2014 |
|
Y-o-Y% |
|
Net Income (US$mln) |
$ |
14.7 |
|
$ |
12.3 |
|
|
19.5 |
% |
|
Earnings per Weighted Average Common Share |
$ |
0.31 |
|
$ |
0.29 |
|
|
- |
|
|
Earnings per Weighted Average Diluted Share |
$ |
0.31 |
|
$ |
0.29 |
|
|
- |
|
|
Stock award expenses |
$ |
22.4 |
|
$ |
8.5 |
|
|
164.7 |
% |
|
Change of the fair value of financial derivatives |
($ |
8.5 |
) |
($ |
6.5 |
) |
|
30.4 |
% |
|
Non-GAAP net income from continuing operations |
$ |
28.5 |
|
$ |
14.2 |
|
|
100.9 |
% |
| |
|
|
|
|
|
|
|
|
|
Net income in 2015 was $14.7 million, compared with
$12.3 million in 2014. The increase in net income was mainly due to
revenue growth and margin improvement, increased net income
contribution from the JV Company, and gain from financial
derivatives, offset by the increase from stock compensation
expense. Non-GAAP net income in 2015 was $28.5 million, a 100.9%
increase from $14.2 million in 2014, mainly due to revenue growth,
margin improvement, and increased net income contribution from the
JV Company.
JV Company Financial Results
In the fourth quarter, the JV Company sold 12,100
EV products, a 231.0% increase from the same period last year.
Total EV product sales comprised 6,474 EV products to the MPT
program and 5,626 EV products through the distribution channel
under the direct sales program, with the latter being a significant
sequential increase over the 3,004 EV products sold through the
distribution channel under the direct sales program in the third
quarter.
The condensed financial income statement of the JV
Company in the fourth quarter is as below:
|
|
4Q15 |
3Q15 |
4Q14 |
Q-o-Q% |
Y-o-Y% |
|
Net Revenues (US$mln) |
$ |
164.8 |
|
$ |
98.4 |
|
$ |
88.8 |
|
|
67.3 |
% |
|
85.6 |
% |
|
Gross Profit (US$mln) |
$ |
27.7 |
|
$ |
13.3 |
|
$ |
27.9 |
|
|
107.7 |
% |
|
-1.0 |
% |
|
Gross Margin |
|
16.8 |
% |
|
13.5 |
% |
|
31.5 |
% |
|
- |
|
|
- |
|
|
Net Income |
$ |
19.3 |
|
$ |
1.6 |
|
$ |
0.7 |
|
|
1098.9 |
% |
|
2497.5 |
% |
|
% of Net revenues |
|
11.7 |
% |
|
1.6 |
% |
|
0.8 |
% |
|
- |
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the full year 2015, the JV Company sold 24,220
EV products, a 121.5% increase from 2014. Total EV product sales
comprised 14,947 EV products to the MPT program and 9,273 EV
products through the distribution channel. Total EV products sold
in 2015 included 11,801 units of model K10, 10,472 units of model
K11, 1,945 units of model K17 and 2 units of model K30.
The condensed financial income statement of the JV
Company in full year 2015 is as below:
|
|
|
2015 |
|
|
2014 |
|
Y-o-Y% |
|
Net Revenues (US$mln) |
$ |
362.7 |
|
$ |
215.5 |
|
|
68.3 |
% |
|
Gross Profit (US$mln) |
$ |
59.6 |
|
$ |
41.9 |
|
|
42.4 |
% |
|
Gross Margin |
|
16.4 |
% |
|
19.4 |
% |
|
- |
|
|
Net Income |
$ |
23.3 |
|
$ |
7.5 |
|
|
209.9 |
% |
|
% of Net revenues |
|
6.4 |
% |
|
3.5 |
% |
|
- |
|
| |
|
|
|
|
|
|
|
|
|
Gross margin for the full year 2015 was 16.4%
compared with 19.4% in 2014. The margin decrease in 2015 was mainly
due to the product price decline and the lower selling price to a
strategic partner during the year.
Kandi’s investments in the JV Company are accounted
for under the equity method of accounting, as Kandi has a 50%
ownership interest in the JV Company. As a result, Kandi recorded
50% of the JV Company’s profit for $9.7 million for the fourth
quarter and $11.7 million for the full year 2015. After eliminating
intra-entity profits and losses, Kandi’s share of the after tax
profit of the JV Company was $9.9 million for the fourth quarter
and $11.8 million for the full year of 2015.
Outlook
For the first quarter of 2016, Kandi expects net
revenues to be in the range of $46.0 million to $48.0 million, with
gross margin in the range of 13.5% to 14.5%. For full year 2016,
Kandi expects net revenues to be in the range of $270 million to
$300 million.
The Company also expects the JV Company to
deliver a total of 35,000 or more EV products in the full year of
2016.
This outlook reflects the current view of the
management, which is subject to change.
Fourth Quarter and Full
Year 2015 Conference Call Details
The Company has scheduled a conference call and
live webcast to discuss the financial results at 8:00 AM (U.S.
Eastern time) on March 14, 2016 (8:00 PM Beijing time on March 14,
2016). 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: 13631514
- Webcast and replay:
http://public.viavid.com/index.php?id=118533
The live audio webcast of the call can also be
accessed by visiting Kandi's Investor Relations website at
http://ir.kandivehicle.com. An archive of the webcast will be
available on the Company's website following the live call.
About Kandi Technologies Group,
Inc.
Kandi Technologies Group, Inc. (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 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 the Company's corporate website at
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.
Follow us on Twitter: @ Kandi_Group
1 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.
- Tables Below -
| KANDI
TECHNOLOGIES GROUP, INC. |
| AND
SUBSIDIARIES |
| CONDENSED
CONSOLIDATED BALANCE SHEETS |
| |
|
ASSETS |
| |
|
December 31, 2015 |
|
December
31, 2014 |
| |
|
|
|
|
|
Current assets |
|
|
|
|
| Cash and
cash equivalents |
$ |
|
16,738,559 |
|
$ |
26,379,460 |
|
Restricted cash |
|
|
16,172,009 |
|
|
13,000,731 |
| Short
term investment |
|
|
1,613,727 |
|
|
- |
| Accounts
receivable |
|
|
8,136,421 |
|
|
15,736,805 |
|
Inventories (net of provision for slow moving inventory of 485,901
and 315,584 as of December 31, 2015 and December 31, 2014,
respectively |
|
|
17,773,679 |
|
|
15,403,840 |
| Notes
receivable |
|
|
13,033,315 |
|
|
9,060,441 |
| Other
receivables |
|
|
332,922 |
|
|
238,567 |
|
Prepayments and prepaid expense |
|
|
181,534 |
|
|
120,761 |
| Due from
employees |
|
|
34,434 |
|
|
34,475 |
| Advances
to suppliers |
|
|
71,794 |
|
|
6,901,505 |
| Amount
due from JV Company, net |
|
|
76,172,471 |
|
|
51,450,612 |
| Amount
due from related party |
|
|
40,606,162 |
|
|
- |
| Deferred
taxes assets |
|
|
- |
|
|
- |
|
TOTAL CURRENT ASSETS |
|
|
190,867,027 |
|
|
138,327,197 |
| |
|
|
|
|
|
LONG-TERM ASSETS |
|
|
|
|
| Plant
and equipment, net |
|
|
20,525,126 |
|
|
26,215,356 |
| Land use
rights, net |
|
|
12,935,121 |
|
|
15,649,152 |
|
Construction in progress |
|
|
54,368,753 |
|
|
58,510,051 |
| Long
Term Investment |
|
|
1,463,182 |
|
|
- |
|
Investment in JV Company |
|
|
90,337,899 |
|
|
83,309,095 |
|
Goodwill |
|
|
322,591 |
|
|
322,591 |
|
Intangible assets |
|
|
495,306 |
|
|
577,401 |
| Other
long term assets |
|
|
154,019 |
|
|
162,509 |
|
TOTAL Long-Term Assets |
|
|
180,601,997 |
|
|
184,746,155 |
| |
|
|
|
|
|
TOTAL ASSETS |
$ |
|
371,469,024 |
|
$ |
323,073,352 |
| |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
| Accounts
payables |
$ |
|
73,957,969 |
|
$ |
45,772,481 |
| Other
payables and accrued expenses |
|
|
9,544,909 |
|
|
5,101,740 |
|
Short-term loans |
|
|
36,656,553 |
|
|
35,589,502 |
| Customer
deposits |
|
|
94,026 |
|
|
2,630,723 |
| Notes
payable |
|
|
3,850,478 |
|
|
5,702,121 |
| Income
tax payable |
|
|
624,276 |
|
|
1,835,685 |
| Due to
employees |
|
|
9,423 |
|
|
15,787 |
| Deferred
taxes liabilities |
|
|
2,374,924 |
|
|
230,864 |
|
Financial derivate - liability |
|
|
3,823,590 |
|
|
2,245,610 |
| Deferred
income |
|
|
13,726 |
|
|
- |
|
Total Current Liabilities |
|
|
130,949,874 |
|
|
99,124,513 |
| |
|
|
|
|
|
LONG-TERM LIABILITIES |
|
|
|
|
| Deferred
taxes liabilities |
|
|
1,593,582 |
|
|
2,266,725 |
|
Financial derivate - liability |
|
|
- |
|
|
10,097,275 |
|
Total Long-Term Liabilities |
|
|
1,593,582 |
|
|
12,364,000 |
| |
|
|
|
|
|
TOTAL LIABILITIES |
|
|
132,543,456 |
|
|
111,488,513 |
| |
|
|
|
|
|
STOCKHOLDER'S EQUITY |
|
|
|
|
| Common
stock, $0.001 par value; 100,000,000 shares authorized; 46,964,855
and 46,274,855 shares issued and outstanding at December 31,2015
and December 31,2014, respectively |
|
|
46,965 |
|
|
46,275 |
|
Additional paid-in capital |
|
|
212,564,334 |
|
|
190,258,037 |
| Retained
earnings (the restricted portion is $4,172,324 and $4,172,324 at
December 31,2015 and December 31,2014, respectively) |
|
|
31,055,919 |
|
|
16,390,424 |
|
Accumulated other comprehensive income(loss) |
|
|
(4,741,650 |
) |
|
4,890,103 |
|
TOTAL STOCKHOLDERS' EQUITY |
|
|
238,925,568 |
|
|
211,584,839 |
| |
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
|
371,469,024 |
|
$ |
323,073,352 |
| |
|
|
|
|
|
|
| KANDI
TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES |
| CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND |
|
COMPREHENSIVE INCOME (LOSS) |
| |
| |
|
December 31, 2015 |
% of Revenue |
|
December 31, 2014 |
% of Revenue |
|
December 31, 2013 |
% of Revenue |
| |
|
|
|
|
|
|
|
|
|
| REVENUES,
NET |
$ |
|
201,069,173 |
|
|
100.0 |
% |
$ |
|
170,229,006 |
|
|
100.0 |
% |
$ |
|
94,536,045 |
|
|
100.0 |
% |
| |
|
|
|
|
|
|
|
|
|
| COST OF GOODS SOLD |
|
|
172,649,955 |
|
|
85.9 |
% |
|
|
146,825,073 |
|
|
86.3 |
% |
|
|
72,793,517 |
|
|
77.0 |
% |
| |
|
|
|
|
|
|
|
|
|
| GROSS PROFIT |
|
|
28,419,218 |
|
|
14.1 |
% |
|
|
23,403,933 |
|
|
13.7 |
% |
|
|
21,742,528 |
|
|
23.0 |
% |
| |
|
|
|
|
|
|
|
|
|
| OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
|
| Research and development |
|
|
3,482,511 |
|
|
1.7 |
% |
|
|
2,755,637 |
|
|
1.6 |
% |
|
|
3,728,730 |
|
|
3.9 |
% |
| Selling and marketing |
|
|
633,863 |
|
|
0.3 |
% |
|
|
1,345,588 |
|
|
0.8 |
% |
|
|
399,504 |
|
|
0.4 |
% |
| General and administrative |
|
|
28,255,267 |
|
|
14.1 |
% |
|
|
14,058,548 |
|
|
8.3 |
% |
|
|
16,056,107 |
|
|
17.0 |
% |
| Total Operating
Expenses |
|
|
32,371,641 |
|
|
16.1 |
% |
|
|
18,159,773 |
|
|
10.7 |
% |
|
|
20,184,341 |
|
|
21.4 |
% |
| |
|
|
|
|
|
|
|
|
|
| INCOME(LOSS) FROM
OPERATIONS |
|
|
(3,952,423 |
) |
|
-2.0 |
% |
|
|
5,244,160 |
|
|
3.1 |
% |
|
|
1,558,187 |
|
|
1.6 |
% |
| |
|
|
|
|
|
|
|
|
|
| OTHER
INCOME(EXPENSE): |
|
|
|
|
|
|
|
|
|
| Interest income |
|
|
3,138,717 |
|
|
1.6 |
% |
|
|
1,701,121 |
|
|
1.0 |
% |
|
|
1,516,477 |
|
|
1.6 |
% |
| Interest expense |
|
|
(2,214,635 |
) |
|
-1.1 |
% |
|
|
(3,480,646 |
) |
|
-2.0 |
% |
|
|
(4,395,353 |
) |
|
-4.6 |
% |
| Change in fair value of financial
instruments |
|
|
8,519,295 |
|
|
4.2 |
% |
|
|
6,531,308 |
|
|
3.8 |
% |
|
|
(16,647,283 |
) |
|
-17.6 |
% |
| Government grants |
|
|
1,645,032 |
|
|
0.8 |
% |
|
|
288,498 |
|
|
0.2 |
% |
|
|
228,396 |
|
|
0.2 |
% |
| Share of profit (loss) in
associated companies |
|
|
- |
|
|
0.0 |
% |
|
|
(54,308 |
) |
|
0.0 |
% |
|
|
(69,056 |
) |
|
-0.1 |
% |
| Share of profit after tax of
JV |
|
|
11,841,855 |
|
|
5.9 |
% |
|
|
4,490,266 |
|
|
2.6 |
% |
|
|
(2,414,354 |
) |
|
-2.6 |
% |
| Other income, net |
|
|
1,814,882 |
|
|
0.9 |
% |
|
|
(34,649 |
) |
|
0.0 |
% |
|
|
676,257 |
|
|
0.7 |
% |
| Total other income,
net |
|
|
24,745,146 |
|
|
12.3 |
% |
|
|
9,441,590 |
|
|
5.5 |
% |
|
|
(21,104,916 |
) |
|
-22.3 |
% |
| |
|
|
|
|
|
|
|
|
|
| INCOME BEFORE INCOME
TAXES |
|
|
20,792,723 |
|
|
10.3 |
% |
|
|
14,685,750 |
|
|
8.6 |
% |
|
|
(19,546,729 |
) |
|
-20.7 |
% |
| |
|
|
|
|
|
|
|
|
|
| INCOME TAX EXPENSE |
|
|
(6,127,228 |
) |
|
-3.0 |
% |
|
|
(2,414,412 |
) |
|
-1.4 |
% |
|
|
(1,593,994 |
) |
|
-1.7 |
% |
| |
|
|
|
|
|
|
|
|
|
| NET INCOME |
|
|
14,665,495 |
|
|
7.3 |
% |
|
|
12,271,338 |
|
|
7.2 |
% |
|
|
(21,140,723 |
) |
|
-22.4 |
% |
| |
|
|
|
|
|
|
|
|
|
| OTHER COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
|
|
| Foreign currency translation |
|
|
(9,631,753 |
) |
|
|
|
(2,725,143 |
) |
|
|
|
2,112,902 |
|
|
| |
|
|
|
|
|
|
|
|
|
| COMPREHENSIVE INCOME(LOSS) |
$ |
|
5,033,742 |
|
|
$ |
|
9,546,195 |
|
|
$ |
|
(19,027,821 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| WEIGHTED AVERAGE SHARES
OUTSTANDING BASIC |
|
|
46,744,718 |
|
|
|
|
42,583,495 |
|
|
|
|
34,707,973 |
|
|
| WEIGHTED AVERAGE SHARES
OUTSTANDING DILUTED |
|
|
46,925,554 |
|
|
|
|
42,715,818 |
|
|
|
|
34,707,973 |
|
|
| |
|
|
|
|
|
|
|
|
|
| NET INCOME PER SHARE, BASIC |
$ |
|
0.31 |
|
|
$ |
|
0.29 |
|
|
$ |
|
(0.61 |
) |
|
| NET INCOME PER SHARE, DILUTED |
$ |
|
0.31 |
|
|
$ |
|
0.29 |
|
|
$ |
|
(0.61 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KANDI
TECHNOLOGIES GROUP, INC. |
| AND
SUBSIDIARIES |
| CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
| |
| |
|
December 31, 2015 |
|
December 31, 2014 |
|
December 31, 2013 |
| |
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
| Net
income(loss) |
$ |
|
14,665,495 |
|
$ |
|
12,271,338 |
|
$ |
|
(21,140,723 |
) |
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
5,788,780 |
|
|
|
5,571,465 |
|
|
|
7,708,923 |
|
| Assets
Impairments |
|
|
194,366 |
|
|
|
- |
|
|
|
355,876 |
|
| Deferred
taxes |
|
|
1,446,345 |
|
|
|
1,579,855 |
|
|
|
876,255 |
|
| Change
in fair value of financial instruments |
|
|
(8,519,295 |
) |
|
|
(6,531,308 |
) |
|
|
16,647,283 |
|
| Loss
(income) in investment in associated companies |
|
|
- |
|
|
|
54,308 |
|
|
|
69,056 |
|
| Share of
profit after tax of JV Company |
|
|
(11,841,855 |
) |
|
|
(4,490,266 |
) |
|
|
2,414,354 |
|
| Decrease
in reserve for fixed assets |
|
|
- |
|
|
|
(302,023 |
) |
|
|
- |
|
| Stock
Compensation cost |
|
|
22,306,987 |
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
Changes in operating assets and liabilities, net of effects
of acquisition: |
|
|
|
|
|
|
|
(Increase) Decrease In: |
|
|
|
|
|
|
| Accounts
receivable |
|
|
7,052,626 |
|
|
|
15,445,962 |
|
|
|
3,251,168 |
|
|
Inventories |
|
|
(3,497,460 |
) |
|
|
(6,280,502 |
) |
|
|
(1,287,045 |
) |
| Other
receivables |
|
|
(193,954 |
) |
|
|
315,071 |
|
|
|
(38,491 |
) |
| Due from
employee |
|
|
(7,596 |
) |
|
|
5,139 |
|
|
|
10,797 |
|
|
Prepayments and prepaid expenses |
|
|
6,664,779 |
|
|
|
(5,360,637 |
) |
|
|
(3,810,447 |
) |
| Amount
due from JV Company |
|
|
(28,519,360 |
) |
|
|
(48,593,522 |
) |
|
|
(2,877,972 |
) |
| |
|
|
|
|
|
|
|
Increase (Decrease) In: |
|
|
|
|
|
|
| Accounts
payable |
|
|
31,814,545 |
|
|
|
23,095,825 |
|
|
|
13,699,528 |
|
| Other
payables and accrued liabilities |
|
|
5,300,095 |
|
|
|
2,694,689 |
|
|
|
(746,838 |
) |
| Customer
deposits |
|
|
(2,496,382 |
) |
|
|
2,588,830 |
|
|
|
(254,151 |
) |
| Income
Tax payable |
|
|
(1,039,187 |
) |
|
|
482,020 |
|
|
|
651,124 |
|
| Due from
related party |
|
|
(42,249,905 |
) |
|
|
- |
|
|
|
(841,251 |
) |
|
Net cash (used in ) provided by operating
activities |
$ |
|
(3,130,976 |
) |
$ |
|
(7,453,756 |
) |
$ |
|
14,687,446 |
|
| |
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
(Purchases)/Disposal of plant and equipment, net |
|
|
(827,059 |
) |
|
|
(2,101,355 |
) |
|
|
(158,830 |
) |
|
(Purchases)/Disposal of land use rights and other intangible
assets |
|
|
1,589,165 |
|
|
|
(1,668,534 |
) |
|
|
- |
|
|
(Purchases)/Disposal of construction in progress |
|
|
1,128,443 |
|
|
|
(50,891,170 |
) |
|
|
(16,134 |
) |
| Deposit
for acquisition |
|
|
- |
|
|
|
- |
|
|
|
(39,673,000 |
) |
| Disposal
of associated company |
|
|
- |
|
|
|
(96,299 |
) |
|
|
64,535,177 |
|
| Issuance
of notes receivable |
|
|
(131,852,319 |
) |
|
|
(24,705,489 |
) |
|
|
(4,174,247 |
) |
|
Repayment of notes receivable |
|
|
127,226,115 |
|
|
|
29,354,592 |
|
|
|
311,844 |
|
| Long
Term Investment |
|
|
(1,522,411 |
) |
|
|
- |
|
|
|
(80,668,972 |
) |
| Short
Term Investment |
|
|
(1,679,051 |
) |
|
|
- |
|
|
|
- |
|
| Cash
acquired in acquisition |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net cash provided by (used in) investing
activities |
$ |
|
(5,937,117 |
) |
$ |
|
(50,108,255 |
) |
$ |
|
(59,844,162 |
) |
| |
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Restricted cash |
|
|
(4,006,346 |
) |
|
|
(13,010,291 |
) |
|
|
16,135,044 |
|
| Proceeds
from short-term bank loans |
|
|
50,640,214 |
|
|
|
48,306,743 |
|
|
|
52,918,845 |
|
|
Repayments of short-term bank loans |
|
|
(47,595,391 |
) |
|
|
(46,517,604 |
) |
|
|
(52,596,170 |
) |
| Proceeds
from notes payable |
|
|
13,781,830 |
|
|
|
18,718,944 |
|
|
|
83,251,992 |
|
|
Repayment of notes payable |
|
|
(15,398,471 |
) |
|
|
(29,602,112 |
) |
|
|
(92,609,593 |
) |
| Proceeds
from bond payable |
|
|
- |
|
|
|
- |
|
|
|
12,907,035 |
|
|
Repayment of bond payable |
|
|
- |
|
|
|
(13,011,917 |
) |
|
|
(12,907,035 |
) |
| Fund
raising through issuing common stock and warrants |
|
|
0 |
|
|
|
78,358,991 |
|
|
|
26,387,498 |
|
| Option
exercise, stock awards & other financing |
|
|
- |
|
|
|
8,431,247 |
|
|
|
9,659,103 |
|
| Warrant
exercise |
|
|
- |
|
|
|
21,101,039 |
|
|
|
3,171,259 |
|
| Common
stock issued for acquisition, net of cost of capital |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net cash (used in) provided by financing
activities |
$ |
|
(2,578,164 |
) |
$ |
|
72,775,040 |
|
$ |
|
46,317,978 |
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
|
(11,646,257 |
) |
|
|
15,213,029 |
|
|
|
1,161,262 |
|
| Effect
of exchange rate changes on cash |
|
|
2,005,356 |
|
|
|
(1,595,938 |
) |
|
|
(533,989 |
) |
| Cash and
cash equivalents at beginning of year |
|
|
26,379,460 |
|
|
|
12,762,369 |
|
|
|
12,135,096 |
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
|
16,738,559 |
|
|
|
26,379,460 |
|
|
|
12,762,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Contact:
Ms. Kewa Luo
Kandi Technologies Group, Inc.
Phone: 1-212-551-3610
Email: IR@kandigroup.com
IR Contact:
The Piacente Group
Phone: 1-212-481-2050
Email: kandi@tpg-ir.com
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