Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”)
(NASDAQ GS: KNDI), today announced its financial results for the
third quarter of 2020.
Operating Highlights
During the third quarter, Kandi achieved:
- In September, established China Battery Exchange Technology
Company, a wholly-owned subsidiary for its battery swapping
services.
- On August 18, Kandi America held a successful virtual launch
event to introduce its K23 and K27 EVs into the U.S. market.
- In August, delivered its fully automatic intelligent battery
exchange system to the rideshare operator in Haikou City,
Hainan.
- In July, the Affiliate Company Fengsheng Automotive launched
sales of the Maple 30X, its first pure electric SUV.
- Fengsheng Automative’s Maple 60V all-electric multi-purpose
vehicle) was approved for purchase subsidies by China’s Ministry of
Industry and Information Technology.
More recently, Kandi also announced:
- A strategic cooperation agreement with the Zhejiang State Grid
Electric Vehicle Service Company in the area of battery exchange
for pure electric vehicles.
- The establishment of Zhejiang Ruiheng Technology Company, which
intends to operate a ridesharing service across China.
- Initiated the IPO process for its wholly owned subsidiary,
Zhejiang Kandi Smart Battery Swap Technology, to list on the
Shanghai Stock Exchange STAR market.
- Kandi America, the U.S. subsidiary has received the required
clearance from the United States Environmental Protection Agency
(EPA) for its two electric vehicle models –
the K23 and K27 – via Certificates of
Conformity.
Financial Highlights
All figures refer to the third quarter of 2020
unless noted otherwise. All comparisons are with the third quarter
of 2019, unless noted otherwise.
- Total revenues were down 40.9% to $18.7 million.
- Electric Vehicle (“EV”) parts sales decreased by 67.4% to $8.4
million.
- Off-road vehicle sales increased by 51.6% to $8.9 million.
- Gross margin of 20.9% increased 42 basis points versus the
year-ago period.
- Net loss was $1.5 million, or $0.03 per fully diluted share.
This compares to net income of $12.1 million, or $0.23 last
year.
- As of September 30, 2020, working capital was $79.8 million.
Cash, cash equivalents and restricted cash was $24.2
million.
Mr. Hu Xiaoming, Chairman and Chief Executive
Officer of Kandi, commented, “As we approach year-end, we are proud
of our progress despite the challenges posed by COVID-19 around the
world. We were productive in the third quarter. Most importantly,
after a lengthy process of preparation, the ‘300,000
government-accredited pure EV within 5 years rideshare’ program—of
which Kandi was a co-founder-- has begun its trial with the gradual
delivery of 1,000 EVs to the city of Haikou in Hainan province and
2,500 EVs to the city of Shaoxing in Zhejiang province. All the EVs
delivered for the program include our battery swap feature. We
believe that this program can drive the production and sales of our
EV parts and battery swap equipment, and we can thus restore growth
in our pure EV business.”
Hu also discussed the plan to list Kandi’s
Battery Swap Subsidiary on the Shanghai Stock Exchange’s STAR
Board: “Based on feedback from three world-class advisors’
preliminary due diligence, we are confident about this proposed
spin-off listing on the STAR market. By tapping China’s capital
markets, listing on the STAR Board will accelerate the Company’s
business growth and also enable Kandi to unlock and realize the
value of this emerging business.”
Net Revenues and Gross Profit
|
|
3Q20 |
|
|
3Q19 |
|
|
Y-o-Y% |
|
Net Revenues (US$million) |
|
$ |
18.7 |
|
|
$ |
31.7 |
|
|
|
-40.9 |
% |
Gross Profit
(US$million) |
|
$ |
3.9 |
|
|
$ |
5.3 |
|
|
|
-25.9 |
% |
Gross
Margin |
|
|
20.9 |
% |
|
|
16.7 |
% |
|
|
- |
|
The decline in revenue was due
mainly to slower sales of EV parts, a result of reduced demand from
our customers due to the economic effects of the COVID-19
pandemic.
Operating Loss
|
|
3Q20 |
|
|
3Q19 |
|
|
Y-o-Y% |
|
Operating Expenses (US$million) |
|
$ |
6.3 |
|
|
$ |
5.0 |
|
|
|
26.8 |
% |
Operating
(Loss) Income (US$million) |
|
($ |
2.4 |
) |
|
$ |
0.3 |
|
|
|
-851.3 |
% |
Operating
Margin |
|
|
-12.7 |
% |
|
|
1.0 |
% |
|
|
- |
|
Operating expenses increased due to
higher sales and marketing expense related to the Company’s entry
into the U.S. electric vehicle market.
Net Income (Loss)
|
|
3Q20 |
|
|
3Q19 |
|
|
Y-o-Y% |
|
Net (Loss) Income (US$million) |
|
($ |
1.5 |
) |
|
$ |
12.1 |
|
|
|
-112.1 |
% |
(Loss)
Earnings per Weighted Average Common Share |
|
($ |
0.03 |
) |
|
$ |
0.23 |
|
|
|
- |
|
(Loss)
Earnings per Weighted Average Diluted Share |
|
($ |
0.03 |
) |
|
$ |
0.23 |
|
|
|
- |
|
Net loss was $1.5 million in the third quarter
of 2020, compared with net income of $12.1 million in the same
quarter of 2019. The decline was due to recognition in the third
quarter of 2019 of a $20.6 million gain from the sale of equity in
the Affiliate Company.
Financial Condition
As of September 30, 2020, the Company had cash
and cash equivalents of $23.9 million, restricted cash of $0.25
million, and working capital of $79.8 million. This compares to
$5.5 million, $11.0 million, $63.7 million as of December 31, 2019,
respectively.
As of September 30, 2020, accounts receivable
were $38.4 million, compared to $61.2 million as of December 31,
2019.
For the first three quarters of 2020, cash used
in operating activities was $13.4 million, as compared to cash used
in operating activities of $14.6 million for the same period last
year.
Third Quarter 2020 Conference Call
Details
The Company will conduct a conference call and
live webcast to discuss its third quarter 2020 financial results
at 8:00 A.M. Eastern Time (9:00 P.M. Beijing Time)
on November 9, 2020. Management will deliver prepared remarks
to be followed by a question and answer session.
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
- Webcast and
replay: http://public.viavid.com/index.php?id=142327
A live audio webcast of the call can also be
accessed by visiting Kandi's Investor Relations page on
the Company’s website at http://www.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 Economic Development Zone, Zhejiang
Province, is engaged in the research, development, manufacturing,
and sales of various vehicular products. Kandi conducts its primary
business operations through its wholly-owned subsidiary, Zhejiang
Kandi Vehicles Co., Ltd. ("Kandi Vehicles") and its subsidiaries
including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, SC
Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary
of Kandi in the United States and Fengsheng Automobile Technology
Group Co., Ltd (formerly known as Kandi Electric Vehicles Group
Co., Ltd., the “Affiliate Company”). Kandi Vehicles has established
itself as one of China's leading manufacturers of pure electric
vehicle parts and off-road vehicles.
In 2013, Kandi Vehicles and Geely Group, China's
leading automaker, jointly invested in the establishment of the
Affiliate Company in order to develop, manufacture and sell pure
electric vehicle ("EV") products. Geely Group (including its
affiliate) and Kandi Vehicles currently holds 78% and 22% of the
equity interests in the Affiliate Company, respectively. The
Affiliate Company has established itself as one of the driving
forces in the development and the manufacturing of pure EV products
in China.
More information about KNDI is available on 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
applicable securities laws, the Company does not assume a duty to
update these forward-looking statements.
Follow us on Twitter: @ Kandi_Group
For More Information:
Kandi Technologies Group, Inc.
Ms. Kewa LuoPhone: +1 (212) 551-3610Email: IR@kandigroup.com
The Blueshirt Group
U.S.:Mr. Gary DvorchakEmail: gary@blueshirtgroup.com
China:Ms. Susie WangEmail: susie@blueshirtgroup.com
- Tables Below -
KANDI TECHNOLOGIES GROUP, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE
SHEETS(UNAUDITED)
|
|
September 30, 2020 |
|
|
December 31, 2019 |
|
|
|
(UNAUDITED) |
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
23,909,159 |
|
|
$ |
5,490,557 |
|
Restricted cash |
|
|
250,000 |
|
|
|
11,022,078 |
|
Accounts
receivable (net of allowance for doubtful accounts of $105,833 and
$254,665 as of September 30, 2020 and December 31, 2019,
respectively) |
|
|
38,370,898 |
|
|
|
61,181,849 |
|
Inventories |
|
|
30,244,514 |
|
|
|
27,736,566 |
|
Notes
receivable |
|
|
235,249 |
|
|
|
42,487,225 |
|
Other
receivables |
|
|
54,654,688 |
|
|
|
5,019,971 |
|
Prepayments and prepaid expense |
|
|
10,980,473 |
|
|
|
10,615,063 |
|
Amount
due from the Affiliate Company |
|
|
20,869,315 |
|
|
|
31,330,763 |
|
Other
current assets |
|
|
4,262,285 |
|
|
|
688,364 |
|
TOTAL
CURRENT ASSETS |
|
|
183,776,581 |
|
|
|
195,572,436 |
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS |
|
|
|
|
|
|
|
|
Property,
plant and equipment, net |
|
|
71,132,470 |
|
|
|
74,407,858 |
|
Intangible assets, net |
|
|
3,264,500 |
|
|
|
3,654,772 |
|
Land use
rights, net |
|
|
9,042,991 |
|
|
|
11,272,815 |
|
Investment in the Affiliate Company |
|
|
39,442,126 |
|
|
|
47,228,614 |
|
Goodwill |
|
|
28,792,031 |
|
|
|
28,270,400 |
|
Other
long term assets |
|
|
13,132,240 |
|
|
|
10,811,501 |
|
TOTAL
NON-CURRENT ASSETS |
|
|
164,806,358 |
|
|
|
175,645,960 |
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
$ |
348,582,939 |
|
|
$ |
371,218,396 |
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
42,154,366 |
|
|
$ |
72,093,940 |
|
Other
payables and accrued expenses |
|
|
5,857,897 |
|
|
|
6,078,041 |
|
Short-term loans |
|
|
- |
|
|
|
25,980,364 |
|
Notes
payable |
|
|
- |
|
|
|
10,765,344 |
|
Income
tax payable |
|
|
1,087,338 |
|
|
|
1,796,601 |
|
Advance
receipts |
|
|
36,691,372 |
|
|
|
- |
|
Long term
loans - current portion |
|
|
16,761,501 |
|
|
|
13,779,641 |
|
Other
current liabilities |
|
|
1,456,108 |
|
|
|
1,379,808 |
|
TOTAL
CURRENT LIABILITIES |
|
|
104,008,582 |
|
|
|
131,873,739 |
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Long term
loans |
|
|
12,156,573 |
|
|
|
14,353,792 |
|
Deferred
taxes liability |
|
|
3,460,346 |
|
|
|
1,362,786 |
|
Contingent consideration liability |
|
|
3,403,000 |
|
|
|
5,197,000 |
|
Other
long-term liabilities |
|
|
588,123 |
|
|
|
574,152 |
|
TOTAL
NON-CURRENT LIABILITIES |
|
|
19,608,042 |
|
|
|
21,487,730 |
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES |
|
|
123,616,624 |
|
|
|
153,361,469 |
|
|
|
|
|
|
|
|
|
|
STOCKHOLDER'S EQUITY |
|
|
|
|
|
|
|
|
Common
stock, $0.001 par value; 100,000,000 shares authorized; 56,531,702
and 56,263,102 shares issued and 54,610,758 and 52,839,441
outstanding at September 30, 2020 and December 31, 2019,
respectively |
|
|
54,611 |
|
|
|
52,839 |
|
Less:
Treasury stock (487,155 shares with average price of $5.09 at
September 30, 2020 and December 31, 2019,
respectively) |
|
|
(2,477,965 |
) |
|
|
(2,477,965 |
) |
Additional paid-in capital |
|
|
260,605,209 |
|
|
|
259,691,370 |
|
Accumulated deficit |
|
|
(15,663,602 |
) |
|
|
(16,685,736 |
) |
Accumulated other comprehensive loss |
|
|
(17,551,938 |
) |
|
|
(22,723,581 |
) |
TOTAL
STOCKHOLDERS' EQUITY |
|
|
224,966,315 |
|
|
|
217,856,927 |
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
348,582,939 |
|
|
$ |
371,218,396 |
|
KANDI TECHNOLOGIES GROUP,
INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE INCOME
(LOSS) (UNAUDITED)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, 2020 |
|
|
September 30, 2019 |
|
|
September 30, 2020 |
|
|
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
FROM UNRELATED PARTIES, NET |
|
$ |
18,717,212 |
|
|
$ |
26,968,385 |
|
|
$ |
44,525,756 |
|
|
$ |
63,360,044 |
|
REVENUES
FROM THE AFFILIATE COMPANY AND RELATED PARTIES, NET |
|
|
6 |
|
|
|
4,720,159 |
|
|
|
962 |
|
|
|
10,543,190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES, NET |
|
|
18,717,218 |
|
|
|
31,688,544 |
|
|
|
44,526,718 |
|
|
|
73,903,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
GOODS SOLD |
|
|
(14,806,322 |
) |
|
|
(26,412,129 |
) |
|
|
(35,911,785 |
) |
|
|
(61,288,228 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT |
|
|
3,910,896 |
|
|
|
5,276,415 |
|
|
|
8,614,933 |
|
|
|
12,615,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
(987,285 |
) |
|
|
(596,187 |
) |
|
|
(2,777,426 |
) |
|
|
(1,766,210 |
) |
Selling
and marketing |
|
|
(2,165,383 |
) |
|
|
(930,810 |
) |
|
|
(3,807,355 |
) |
|
|
(2,448,291 |
) |
General
and administrative |
|
|
(3,212,209 |
) |
|
|
(3,432,920 |
) |
|
|
(10,186,135 |
) |
|
|
(11,096,246 |
) |
Gain on
disposal of long-lived assets |
|
|
76,159 |
|
|
|
- |
|
|
|
13,983,733 |
|
|
|
- |
|
TOTAL
OPERATING EXPENSES, NET |
|
|
(6,288,718 |
) |
|
|
(4,959,917 |
) |
|
|
(2,787,183 |
) |
|
|
(15,310,747 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS)
INCOME FROM OPERATIONS |
|
|
(2,377,822 |
) |
|
|
316,498 |
|
|
|
5,827,750 |
|
|
|
(2,695,741 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
558,059 |
|
|
|
209,736 |
|
|
|
1,118,795 |
|
|
|
559,954 |
|
Interest
expense |
|
|
(788,589 |
) |
|
|
(435,524 |
) |
|
|
(2,894,579 |
) |
|
|
(1,304,062 |
) |
Change in
fair value of contingent consideration |
|
|
(1,069,000 |
) |
|
|
57,000 |
|
|
|
1,794,000 |
|
|
|
694,000 |
|
Government grants |
|
|
13,431 |
|
|
|
502,146 |
|
|
|
111,329 |
|
|
|
725,189 |
|
Gain
(loss) from equity dilution in the Affiliate Company |
|
|
- |
|
|
|
(49,285 |
) |
|
|
- |
|
|
|
4,291,974 |
|
Gain from
sale of equity in the Affiliate Company |
|
|
- |
|
|
|
20,574,217 |
|
|
|
- |
|
|
|
20,574,217 |
|
Share of
loss after tax of the Affiliate Company |
|
|
(1,550,568 |
) |
|
|
(8,433,767 |
) |
|
|
(5,631,867 |
) |
|
|
(22,883,126 |
) |
Other
income, net |
|
|
988,287 |
|
|
|
57,833 |
|
|
|
2,051,272 |
|
|
|
357,626 |
|
TOTAL
OTHER (EXPENSE) INCOME, NET |
|
|
(1,848,380 |
) |
|
|
12,482,356 |
|
|
|
(3,451,050 |
) |
|
|
3,015,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS)
INCOME BEFORE INCOME TAXES |
|
|
(4,226,202 |
) |
|
|
12,798,854 |
|
|
|
2,376,700 |
|
|
|
320,031 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
TAX BENEFIT (EXPENSE) |
|
|
2,767,939 |
|
|
|
(709,413 |
) |
|
|
(1,354,563 |
) |
|
|
41,780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
(LOSS) INCOME |
|
|
(1,458,263 |
) |
|
|
12,089,441 |
|
|
|
1,022,137 |
|
|
|
361,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustment |
|
|
8,216,974 |
|
|
|
(8,531,043 |
) |
|
|
5,171,643 |
|
|
|
(8,042,604 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME (LOSS) |
|
$ |
6,758,711 |
|
|
$ |
3,558,398 |
|
|
$ |
6,193,780 |
|
|
$ |
(7,680,793 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED
AVERAGE SHARES OUTSTANDING BASIC AND DILUTED |
|
|
54,112,981 |
|
|
|
52,613,642 |
|
|
|
53,282,066 |
|
|
|
52,332,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME PER SHARE, BASIC AND DILUTED |
|
$ |
(0.03 |
) |
|
$ |
0.23 |
|
|
$ |
0.02 |
|
|
$ |
0.01 |
|
KANDI TECHNOLOGIES GROUP,
INC.AND
SUBSIDIARIESCondensed
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’
EQUITY(UNAUDITED)
|
|
Number of Outstanding Shares |
|
|
Common Stock |
|
|
Treasury Stock |
|
|
Additional Paid-in Capital |
|
|
Accumulated Deficit |
|
|
Accumulated Other Comprehensive
Loss |
|
|
Total |
|
Balance, December 31, 2018 |
|
|
51,484,444 |
|
|
$ |
51,484 |
|
|
$ |
- |
|
|
$ |
254,989,657 |
|
|
$ |
(9,497,009 |
) |
|
$ |
(19,921,258 |
) |
|
$ |
225,622,874 |
|
Stock
issuance and awards |
|
|
1,096,397 |
|
|
|
1,097 |
|
|
|
- |
|
|
|
3,387,379 |
|
|
|
- |
|
|
|
- |
|
|
|
3,388,476 |
|
Net
loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,409,472 |
) |
|
|
- |
|
|
|
(4,409,472 |
) |
Foreign
currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,404,028 |
|
|
|
5,404,028 |
|
Balance,
March 31, 2019 |
|
|
52,580,841 |
|
|
$ |
52,581 |
|
|
$ |
- |
|
|
$ |
258,377,036 |
|
|
$ |
(13,906,481 |
) |
|
$ |
(14,517,230 |
) |
|
$ |
230,005,906 |
|
Stock
issuance and awards |
|
|
238,600 |
|
|
|
238 |
|
|
|
- |
|
|
|
1,259,569 |
|
|
|
- |
|
|
|
- |
|
|
|
1,259,807 |
|
Net
loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(7,318,158 |
) |
|
|
- |
|
|
|
(7,318,158 |
) |
Foreign
currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,915,589 |
) |
|
|
(4,915,589 |
) |
Balance,
June 30, 2019 |
|
|
52,819,441 |
|
|
$ |
52,819 |
|
|
$ |
- |
|
|
$ |
259,636,605 |
|
|
$ |
(21,224,639 |
) |
|
$ |
(19,432,819 |
) |
|
$ |
219,031,966 |
|
Stock
issuance and awards |
|
|
20,000 |
|
|
|
20 |
|
|
|
- |
|
|
|
69,380 |
|
|
|
- |
|
|
|
- |
|
|
|
69,400 |
|
Stock
buyback |
|
|
- |
|
|
|
- |
|
|
|
(2,477,965 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,477,965 |
) |
Commission
in stock buyback |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(14,615 |
) |
|
|
- |
|
|
|
- |
|
|
|
(14,615 |
) |
Net
income |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
12,089,441 |
|
|
|
- |
|
|
|
12,089,441 |
|
Foreign
currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(8,531,043 |
) |
|
|
(8,531,043 |
) |
Balance,
September 30, 2019 |
|
|
52,839,441 |
|
|
$ |
52,839 |
|
|
$ |
(2,477,965 |
) |
|
$ |
259,691,370 |
|
|
$ |
(9,135,198 |
) |
|
$ |
(27,963,862 |
) |
|
$ |
220,167,184 |
|
|
|
Number of Outstanding Shares |
|
|
Common Stock |
|
|
Treasury Stock |
|
|
Additional Paid-in Capital |
|
|
Accumulated Deficit |
|
|
Accumulated Other Comprehensive
Loss |
|
|
Total |
|
Balance, December 31, 2019 |
|
|
52,839,441 |
|
|
$ |
52,839 |
|
|
$ |
(2,477,965 |
) |
|
$ |
259,691,370 |
|
|
$ |
(16,685,736 |
) |
|
$ |
(22,723,581 |
) |
|
$ |
217,856,927 |
|
Stock
issuance and awards |
|
|
10,000 |
|
|
|
10 |
|
|
|
- |
|
|
|
22,290 |
|
|
|
- |
|
|
|
- |
|
|
|
22,300 |
|
Net
loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,574,646 |
) |
|
|
- |
|
|
|
(1,574,646 |
) |
Foreign
currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,523,065 |
) |
|
|
(3,523,065 |
) |
Balance,
March 31, 2020 |
|
|
52,849,441 |
|
|
$ |
52,849 |
|
|
$ |
(2,477,965 |
) |
|
$ |
259,713,660 |
|
|
$ |
(18,260,382 |
) |
|
$ |
(26,246,646 |
) |
|
$ |
212,781,516 |
|
Stock
issuance and awards |
|
|
1,502,717 |
|
|
|
1,503 |
|
|
|
- |
|
|
|
3,164,925 |
|
|
|
- |
|
|
|
- |
|
|
|
3,166,428 |
|
Net
income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,055,043 |
|
|
|
- |
|
|
|
4,055,043 |
|
Foreign
currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
477,734 |
|
|
|
477,734 |
|
Balance,
June 30, 2020 |
|
|
54,352,158 |
|
|
$ |
54,352 |
|
|
$ |
(2,477,965 |
) |
|
$ |
262,878,585 |
|
|
$ |
(14,205,339 |
) |
|
$ |
(25,768,912 |
) |
|
$ |
220,480,721 |
|
Stock
issuance and awards |
|
|
258,600 |
|
|
|
259 |
|
|
|
- |
|
|
|
870,837 |
|
|
|
- |
|
|
|
- |
|
|
|
871,096 |
|
Net
loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,458,263 |
) |
|
|
- |
|
|
|
(1,458,263 |
) |
Foreign
currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,216,974 |
|
|
|
8,216,974 |
|
Reduction in
the Affiliate Company’s equity |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,144,213 |
) |
|
|
- |
|
|
|
- |
|
|
|
(3,144,213 |
) |
Balance,
September 30, 2020 |
|
|
54,610,758 |
|
|
$ |
54,611 |
|
|
$ |
(2,477,965 |
) |
|
$ |
260,605,209 |
|
|
$ |
(15,663,602 |
) |
|
$ |
(17,551,938 |
) |
|
$ |
224,966,315 |
|
KANDI TECHNOLOGIES GROUP, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
Nine Months Ended |
|
|
|
September 30, 2020 |
|
|
September 30, 2019 |
|
CASH
FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
Net
income |
|
$ |
1,022,137 |
|
|
$ |
361,811 |
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
6,078,070 |
|
|
|
6,443,422 |
|
(Reversal) provision of allowance for doubtful accounts |
|
|
(150,756 |
) |
|
|
15,366 |
|
Deferred
taxes |
|
|
1,256,167 |
|
|
|
50,693 |
|
Share of
loss after tax of the Affiliate Company |
|
|
5,631,867 |
|
|
|
22,883,126 |
|
Gain from
equity dilution in the Affiliate Company |
|
|
- |
|
|
|
(4,291,974 |
) |
Gain from
sale of equity in the Affiliate Company |
|
|
- |
|
|
|
(20,574,217 |
) |
Gain on
disposal of long-lived assets |
|
|
(13,983,733 |
) |
|
|
- |
|
Change in
fair value of contingent consideration |
|
|
(1,794,000 |
) |
|
|
(694,000 |
) |
Stock
based compensation expense |
|
|
870,471 |
|
|
|
1,337,333 |
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
18,165,084 |
|
|
|
(36,822,184 |
) |
Notes
receivable |
|
|
- |
|
|
|
174,881 |
|
Notes
receivable from the Affiliate Company and related party |
|
|
- |
|
|
|
437,203 |
|
Inventories |
|
|
(1,830,827 |
) |
|
|
(14,768,603 |
) |
Other
receivables and other assets |
|
|
(5,226,968 |
) |
|
|
(7,746,801 |
) |
Prepayments and prepaid expenses |
|
|
(84,089 |
) |
|
|
1,357,001 |
|
Amount
due from the Affiliate Company |
|
|
4,178,477 |
|
|
|
30,549,072 |
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) In: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
|
(15,642,931 |
) |
|
|
11,383,411 |
|
Other
payables and accrued liabilities |
|
|
2,675,156 |
|
|
|
8,934,397 |
|
Notes
payable |
|
|
(13,725,855 |
) |
|
|
(11,836,950 |
) |
Income
tax payable |
|
|
(804,238 |
) |
|
|
(1,803,574 |
) |
Net
cash used in operating activities |
|
$ |
(13,365,968 |
) |
|
$ |
(14,610,587 |
) |
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchases
of property, plant and equipment, net |
|
|
(383,568 |
) |
|
|
(955,670 |
) |
Payment
for construction in progress |
|
|
(1,604,427 |
) |
|
|
(18,491 |
) |
Proceeds
from disposal of long-lived assets |
|
|
51,872,829 |
|
|
|
- |
|
Loan to
third party |
|
|
(45,958,247 |
) |
|
|
(9,555,014 |
) |
Cash
received from sales of equity in the Affiliate Company |
|
|
42,321,385 |
|
|
|
32,061,558 |
|
Net
cash provided by investing activities |
|
$ |
46,247,972 |
|
|
$ |
21,532,383 |
|
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds
from short-term loans |
|
|
24,163,223 |
|
|
|
27,864,409 |
|
Repayments of short-term loans |
|
|
(50,042,178 |
) |
|
|
(26,261,331 |
) |
Repayments of long-term loans |
|
|
(285,955 |
) |
|
|
(145,734 |
) |
Proceeds
from long-term loans |
|
|
394,116 |
|
|
|
- |
|
Repayments of loan from third party |
|
|
- |
|
|
|
(1,259,551 |
) |
Stock
buyback with commission |
|
|
- |
|
|
|
(2,492,579 |
) |
Net
cash used in financing activities |
|
$ |
(25,770,794 |
) |
|
$ |
(2,294,786 |
) |
|
|
|
|
|
|
|
|
|
NET
INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
7,111,210 |
|
|
|
4,627,010 |
|
Effect of
exchange rate changes |
|
|
535,314 |
|
|
|
(928,440 |
) |
CASH
AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF
YEAR |
|
|
16,512,635 |
|
|
|
22,353,071 |
|
|
|
|
|
|
|
|
|
|
CASH
AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD |
|
$ |
24,159,159 |
|
|
$ |
26,051,641 |
|
-CASH AND
CASH EQUIVALENTS AT END OF PERIOD |
|
|
23,909,159 |
|
|
|
14,338,637 |
|
-RESTRICTED CASH AT END OF PERIOD |
|
|
250,000 |
|
|
|
11,713,004 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
Income
taxes paid |
|
$ |
901,021 |
|
|
$ |
1,711,101 |
|
Interest
paid |
|
$ |
644,724 |
|
|
$ |
1,304,062 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL NON-CASH DISCLOSURES: |
|
|
|
|
|
|
|
|
Decrease
in investment in the Affiliate Company due to change in its
equity |
|
$ |
3,057,540 |
|
|
$ |
- |
|
Notes
receivable from unrelated parties for equity transfer payment |
|
$ |
- |
|
|
$ |
43,137,369 |
|
Common
stock issued for settlement of payables related to acquisitions
(see Note 20) |
|
$ |
3,166,427 |
|
|
$ |
3,357,425 |
|
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