– Full year 2014 EV parts sales jumped 6653% YoY to $116.4 Million -
– Full year GAAP net income increased 158% YoY to $12.3 Million -
– Full year EPS of $0.29 compared to 2013 EPS of ($0.61) -
Jinhua, China--(Newsfile Corp. - March 16, 2015) - Kandi Technologies Group, Inc. (NASDAQ GS: KNDI), (the "Company" or "Kandi") today announced its financial results for the full year ending December 31, 2014.
Full Year 2014 Highlights
- Total revenues grew 80.1% to $170.2 million from $94.5 million in 2013;
- Electric Vehicle ("EV") Parts sales increased significantly by 6,653.4% to $116.4 million compared to $1.7 million in the previous year;
- Full year sales for our joint venture company, Kandi Electric Vehicles Group Co., Ltd. (the "JV Company"),* were $215.5 million, with net income of $7.5 million. Based on Kandi’s 50% equity ownership in the JV Company, Kandi recorded $4.5 million in net income (after tax and intra-entity elimination) in 2014;
- The JV Company sold 10,935 EV products during the full year of 2014, with 3,656 EVs sold in the fourth quarter;
- GAAP net income in 2014 was $12.3 million, or approximately $0.29 per fully diluted share, a 158.0% increase compared to a net loss of $21.1 million, or approximately ($0.61) in 2013;
- Non-GAAP adjusted net income**, which excludes stock award expense and change in the fair value of financial derivatives, was $14.2 million, or approximately $0.33 per fully diluted share, a 174.8% increase from $5.2 million for 2013;
- Working capital surplus was $39.2 million as of December 31, 2014, compared to a working capital deficit of $6.6 million as of December 31, 2013;
- Cash, cash equivalents and restricted cash totaled $39.3 million as of December 31, 2014 compared to $12.8 million as of December 31, 2013;
*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")
**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.
Mr. Xiaoming Hu, Chairman and Chief Executive Officer of Kandi Technologies Commented, "Our robust financial results were driven by the growing market demand for electric vehicles. In 2014, we invested a tremendous amount of time and resources on building our EV business. Kandi’s electric vehicle model has been highly appraised by China’s Science and Technology Minister and other senior government officials. At the end of 2014, Micro Public Transportation (MPT), an EV Sharing Program we have been advocating, has expanded to nine Chinese cities with 14,398 pure EVs delivered since the beginning of its trial operation in the second half of 2013."
"Looking ahead, we are extremely excited about Kandi’s business prospects for continued growth. Given the government’s strong commitment towards policies that encourage the adoption of electric vehicles nationwide, including the national and local government subsidies, the electric vehicle tax breaks, along with the prevailing favorable market conditions in China, we are confident in our ability to execute our strategy to further grow market shares in China. Recently, the management team of our joint venture company has decided to expand its EV sales effort directly to the end customers, which, together with JV’s existing fleet sales model, will be a key catalyst that boost consumer demand for our electric vehicles. We look forward to enhancing our overall product and service, while leveraging the JV Company’s flexible business model and its leading position in both EV sharing and EV sales businesses, and finally making Kandi a leader in the EV market in China." Mr. Hu concluded.
KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
| 2014 | 2013 | 2012 | |||||||
| REVENUES, NET | $ | 170,229,006 | $ | 94,536,045 | $ | 64,513,670 | |||
| COST OF GOODS SOLD | (146,825,073 | ) | (72,793,517 | ) | (51,620,280 | ) | |||
| GROSS PROFIT | 23,403,933 | 21,742,528 | 12,893,390 | ||||||
| OPERATING EXPENSES: | |||||||||
| Research and development | (2,755,637 | ) | (3,728,730 | (2,877,283 | ) | ||||
| Selling and marketing | (1,345,588 | ) | (399,504 | ) | (455,983 | ) | |||
| General and administrative | (14,058,548 | ) | (16,056,107 | ) | (4,250,832 | ) | |||
| Total operating expenses | (18,159,773 | ) | (20,184,341 | ) | (7,584,098 | ) | |||
| INCOME FROM OPERATIONS | 5,244,160 | 1,558,187 | 5,309,292 | ||||||
| OTHER INCOME (EXPENSE): | |||||||||
| Interest income | 1,701,121 | 1,516,477 | 2,658,104 | ||||||
| Interest (expense) | (3,480,646 | ) | (4,395,353 | ) | (2,775,891 | ) | |||
| Change in fair value of financial instruments | 6,531,308 | (16,647,283 | ) | 1,986,063 | |||||
| Government grants | 288,498 | 228,396 | 132,139 | ||||||
| Share of (loss) in associated companies | (54,308 | ) | (69,056 | ) | (69,429 | ) | |||
| Share of profit (loss) after tax of JV | 4,490,266 | (2,414,354 | ) | - | |||||
| Other income (expense), net | (34,649 | ) | 676,257 | 332,936 | |||||
| Total other income (expense), net | 9,441,590 | (21,104,916 | ) | 2,263,922 | |||||
| INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | 14,685,750 | (19,546,729 | ) | 7,573,214 | |||||
| PROVISION FOR INCOME TAXES | (2,414,412 | ) | (1,593,994 | ) | (1,523,735 | ) | |||
| NET INCOME (LOSS) | 12,271,338 | (21,140,723 | ) | 6,049,479 | |||||
| OTHER COMPREHENSIVE INCOME | |||||||||
| Foreign currency translation | (2,725,143 | ) | 2,112,902 | 424,623 | |||||
| COMPREHENSIVE INCOME (LOSS) | $ | 9,546,195 | $ | (19,027,821 | ) | $ | 6,474,102 | ||
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 42,583,495 | 34,707,973 | 29,439,328 | ||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 42,715,818 | 34,707,973 | 29,677,325 | ||||||
| NET INCOME (LOSS) PER SHARE, BASIC | $ | 0.29 | $ | (0.61 | ) | $ | 0.21 | ||
| NET INCOME (LOSS) PER SHARE, DILUTED | $ | 0.29 | $ | (0.61 | ) | $ | 0.20 | ||
KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS | ||||||
| December 31, | December 31, | |||||
| 2014 | 2013 | |||||
| CURRENT ASSETS | ||||||
| Cash and cash equivalents | $ | 26,379,460 | $ | 12,762,369 | ||
| Restricted cash | 13,000,731 | 1,636 | ||||
| Accounts receivable | 15,736,805 | 31,370,862 | ||||
| Inventories (net of provision for slow moving inventory of $315,584 and $352,734 as of December 31, 2014 and 2013 respectively | 15,403,840 | 9,187,714 | ||||
| Notes receivable | 9,060,441 | 13,794,094 | ||||
| Other receivables | 238,567 | 556,904 | ||||
| Prepayments and prepaid expenses | 120,761 | 505,513 | ||||
| Due from employees | 34,475 | 34,272 | ||||
| Advances to suppliers | 6,901,505 | 8,867,074 | ||||
| Amount due from JV Company, net | 51,450,612 | 2,917,592 | ||||
| Deferred tax | - | 13,706 | ||||
| Total Current Assets | 138,327,197 | 80,011,736 | ||||
| LONG-TERM ASSETS | ||||||
| Plant and equipment, net | 26,215,356 | 29,333,516 | ||||
| Land use rights, net | 15,649,152 | 14,453,191 | ||||
| Construction in progress | 58,510,051 | 16,356 | ||||
| Deferred taxes | - | 81,076 | ||||
| Investment in associated company | - | 96,838 | ||||
| Investment in JV Company | 83,309,095 | 79,331,930 | ||||
| Goodwill | 322,591 | 322,591 | ||||
| Intangible assets | 577,401 | 659,496 | ||||
| Other long-term assets | 162,509 | - | ||||
| Total Long-Term Assets | 184,746,155 | 124,294,994 | ||||
| TOTAL ASSETS | $ | 323,073,352 | $ | 204,306,730 | ||
KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| December 31, | December 31, | |||||
| 2014 | 2013 | |||||
| CURRENT LIABILITIES | ||||||
| Accounts payable | $ | 45,772,481 | $ | 22,843,143 | ||
| Other payables and accrued expenses | 5,101,740 | 2,422,613 | ||||
| Short-term bank loans | 35,589,502 | 34,020,281 | ||||
| Customer deposits | 2,630,723 | 44,404 | ||||
| Notes payable | 5,702,121 | 16,683,023 | ||||
| Income tax payable | 1,835,685 | 1,362,828 | ||||
| Due to employees | 15,787 | 10,297 | ||||
| Deferred taxes | 230,864 | - | ||||
| Financial derivate - liability | 2,245,610 | 9,256,827 | ||||
| Total Current Liabilities | 99,124,513 | 86,643,416 | ||||
| LONG-TERM LIABILITIES | ||||||
| Deferred tax | 2,266,725 | 1,009,477 | ||||
| Bond payable | - | 13,084,724 | ||||
| Financial derivatives - liability | 10,097,275 | 15,042,994 | ||||
| Total Long-Term Liabilities | 12,364,000 | 29,137,195 | ||||
| TOTAL LIABILITIES | 111,488,513 | 115,780,611 | ||||
| STOCKHOLDERS' EQUITY | ||||||
| Common stock, $0.001 par value; 100,000,000 shares authorized; 46,274,855 | ||||||
| and 37,012,904 shares issued and outstanding at December 31, 2014 and | ||||||
| 2013, respectively | 46,275 | 37,013 | ||||
| Additional paid-in capital | 190,258,037 | 76,754,774 | ||||
| Retained earnings (the restricted portion is $4,172,324 and $3,807,551 at December 31, 2014 and 2013, respectively) | 16,390,424 | 4,119,086 | ||||
| Accumulated other comprehensive income | 4,890,103 | 7,615,246 | ||||
| TOTAL STOCKHOLDERS' EQUITY | 211,584,839 | 88,526,119 | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 323,073,352 | $ | 204,306,730 | ||
KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
| 2014 | 2013 | 2012 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
| Net income (loss) | $ | 12,271,338 | $ | (21,140,723 | ) | $ | 6,049,479 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
| Depreciation and amortization | 5,571,465 | 7,708,923 | 4,978,626 | ||||||
| Assets impairments | - | 355,876 | 465,199 | ||||||
| Deferred taxes | 1,579,855 | 876,255 | 92,521 | ||||||
| Change in value of financial instruments | (6,531,308 | ) | 16,647,283 | (1,986,063 | ) | ||||
| Loss in investment in associated company | 54,308 | 69,056 | 69,429 | ||||||
| Share of profit after tax of JV | (4,490,266 | ) | 2,414,354 | - | |||||
| Decrease in reserve for fixed assets | (302,023 | ) | - | - | |||||
| Option cost | - | - | 19,053 | ||||||
| Changes in operating assets and liabilities, net of effects of acquisition: | |||||||||
| (Increase) Decrease In: | |||||||||
| 15,445,962 | (20,513,099 | ) | |||||||
| Accounts receivable | 3,251,168 | ||||||||
| Inventories | (6,280,502 | ) | (1,287,045 | ) | (904,355 | ) | |||
| Other receivables | 315,071 | (38,491 | ) | 1,955,055 | |||||
| Due from employees | 5,139 | 10,797 | 37,117 | ||||||
| Prepayments and prepaid expenses | (5,360,637 | ) | (3,810,447 | ) | (4,285,489 | ) | |||
| Amount due from JV | (48,593,522 | ) | (2,877,972 | ) | - | ||||
| Increase (Decrease) In: | |||||||||
| Accounts payable | 23,095,825 | 13,699,528 | 3,566,354 | ||||||
| Other payables and accrued liabilities | 2,694,689 | (746,838 | ) | (50,333 | ) | ||||
| Customer deposits | 2,588,830 | (254,151 | ) | (740,419 | ) | ||||
| Income tax payable | 482,020 | 651,124 | 525,030 | ||||||
| Due to related party | - | (841,251 | ) | - | |||||
| Net cash (used in) provided by operating activities | (7,453,756 | ) | 14,687,446 | (10,721,895 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
| (Purchases)/Disposal of plant and equipment, net | (2,101,355 | ) | (158,830 | ) | (9,072,230 | ) | |||
| Purchases of land use rights | (1,668,534 | ) | - | - | |||||
| Purchases of construction in progress | (50,891,170 | ) | (16,134 | ) | - | ||||
| Deposit for acquisition | - | - | (24,383,529 | ) | |||||
| Asset acquisition, net of deposit | - | (39,673,000 | ) | - | |||||
| Disposal of subsidiary | (96,299 | ) | 64,535,177 | - | |||||
| Issuance of notes receivable | (24,705,489 | ) | (4,174,247 | ) | (1,011,821 | ) | |||
| Repayments of notes receivable | 29,354,592 | 311,844 | 29,603,171 | ||||||
| Investment in JV | - | (80,668,972 | ) | - | |||||
| Cash acquired in acquisition | - | - | 112,551 | ||||||
| Net cash (used in) investing activities | (50,108,255 | ) | (59,844,162 | ) | (4,751,858 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
| Restricted cash | (13,010,291 | ) | 16,135,044 | (9,143,907 | ) | ||||
| Proceeds from short-term bank loans | 48,306,743 | 52,918,845 | 41,504,215 | ||||||
| Repayments of short-term bank loans | (46,517,604 | ) | (52,596,170 | ) | (45,539,128 | ) | |||
| Proceeds from notes payable | 18,718,944 | 83,251,992 | 40,491,531 | ||||||
| Repayments of notes payable | (29,602,112 | ) | (92,609,593 | ) | (21,063,559 | ) | |||
| Proceeds from bond payable | - | 12,907,035 | 12,658,548 | ||||||
| Repayments of bond payable | (13,011,917 | ) | (12,907,035 | ) | - | ||||
| Fund raising through issuing common stock and warrants | 78,358,991 | 26,387,498 | - | ||||||
| Option exercise, stock award & other financing | 8,431,247 | 9,659,103 | 1,258,231 | ||||||
| Warrant exercise | 21,101,039 | 3,171,259 | 1,672,739 | ||||||
| Common stock issued for acquisition, net of cost of capital | - | - | 3,784,149 | ||||||
| Net cash provided by financing activities | 72,775,040 | 46,317,978 | 25,622,819 | ||||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 15,213,029 | 1,161,262 | 10,149,066 | ||||||
| Effect of exchange rate changes on cash | (1,595,938 | ) | (533,989 | ) | (308,322 | ) | |||
| Cash and cash equivalents at beginning of year | 12,762,369 | 12,135,096 | 2,294,352 | ||||||
| CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 26,379,460 | $ | 12,762,369 | $ | 12,135,096 | |||
| SUPPLEMENTARY CASH FLOW INFORMATION | |||||||||
| Income taxes paid | $ | 1,932,392 | $ | 942,870 | $ | 998,706 | |||
| Interest paid | $ | 3,475,893 | $ | 3,565,496 | $ | 2,570,691 | |||
| Issuance of Common stock for acquisition | $ | - | $ | - | $ | 8,616,416 | |||
| SUPPLEMENTAL NON-CASH DISCLOSURES: | |||||||||
| Prepayments transferred to construction in progress | $ | 7,652,959 | $ | - | $ | - | |||
| Construction in progress transferred to plant and equipment | $ | - | $ | - | $ | 10,078,637 | |||
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (NASDAQ GS: 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 the China's leading manufacturers of pure electric vehicle ("EV") products, 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.
IR Contact:
Kandi Technologies Group, Inc.
Ms. Kewa Luo
Phone: 1-212-551-3610
Email: IR@kandigroup.com
