UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
(AMENDMENT NO.
1)
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange
Act of 1934
Date of Report (Date of earliest event reported):
March 14, 2016
KANDI TECHNOLOGIES GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware |
001-33997 |
90-0363723 |
(State of Incorporation) |
(Commission File Number) |
(IRS Employer Identification)
|
Jinhua City Industrial Zone
Jinhua, Zhejiang
Province
Peoples Republic of China
Post Code 321016
(Address of principal executive offices)
(86-579) 8223-9700
Registrants telephone number,
including area code
Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a -12)
[ ] Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
[ ] Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))
Item 2.02 Results of Operations and Financial
Condition.
On March 14, 2016, Kandi Technologies Group, Inc., a
corporation incorporated in the State of Delaware (the Company), announced a
correction to its earnings release issued and furnished with a Form 8-K at
7:00am ET on the same day (the Previous Release). This Amendment No. 1 to Form 8-K contains the copy of the press
release titled Correction: Kandi Technologies Reports Fourth Quarter and Full
Year 2015 Financial Results, which is furnished as Exhibit 99.1 hereto. The
corrected earnings release supersedes the Previous Release.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
|
KANDI TECHNOLOGIES GROUP, INC. |
|
|
Date: March 14, 2016 |
By: /s/ Hu Xiaoming |
|
Name: Hu Xiaoming |
|
Title: Chief Executive Officer
|
Correction: Kandi Technologies Reports Fourth Quarter and Full Year 2015
Financial Results
- 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 $0.61
EP
JINHUA, CHINA-- (March 14, 2016) - Kandi Technologies Group,
Inc. (the Company, we or Kandi) (NASDAQ GS: KNDI), announced a correction
to its press release issued on Monday, March 14, 2016 entitled, Kandi
Technologies Reports Fourth Quarter and Full Year 2015 Financial Results.
In the press release issued at 7:00 am ET, the year-over-year
percentage changes for Net Revenues, Gross Profit and Net Income included in the
full year 2015 income statement table under the JV Company Financial Results
were miscalculated. The correct calculation included in the income statement
table of the JV Company is as follows:
|
2015 |
2014 |
Y-o-Y% |
Net Revenues (US$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 |
$23.1 |
$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. |
_________________________________________
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.
|
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 Chinas 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.
Chinas 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 Chinas 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.
Kandis 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 Companys 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, Kandis 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
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
- Tables Below -
KANDI TECHNOLOGIES GROUP, INC.
AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
December
31, |
|
|
December 31, |
|
|
|
2015 |
|
|
2014 |
|
ASSETS |
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
(54,308 |
) |
|
|
|
|
(69,056 |
) |
|
- |
|
companies |
|
- |
|
|
0.0% |
|
|
|
|
|
0.0% |
|
|
|
|
|
0.1% |
|
Share of profit after tax of JV |
|
11,841,855 |
|
|
5.9% |
|
|
4,490,2 66 |
|
|
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. % |
|
|
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
|
|
|
December
|
|
|
December
|
|
|
|
31, 2015 |
|
|
31, 2014 |
|
|
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
|
|
(131,852,31 9 |
)
|
|
(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 |
|
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