- Company gained significant sales in UTV growing 677.4% YoY -
- ATV sales Increased 27.5% YoY -

Jinhua, China--(Newsfile Corp. - May 14, 2013) - Kandi Technologies Group, Inc. (NASDAQ: KNDI) (the 'Company' or 'Kandi'), today reported financial results for the first quarter ended March 31, 2013.

For the three months ended March 31, 2013:

Revenues grew 2.1% to $14.67 million from $14.36 million last year;
UTV revenues had a significant increase of 677.4% from $74,433 to $578,673, while ATV sales grew 27.5% to $2.55 million in the quarter from $2.00 million a year ago;
Operating income rose 5.1% to $1.90 million as gross profits grew 0.9% to $3.37 million compared with $3.34 million in the first quarter of 2012;
GAAP net income was $2.24 million, a slight decrease of 6.1% compared with $2.38 million in the 2012 first quarter;
EV sold 302 units in the first quarter compared with 296 in the first quarter of 2012;
Working capital surplus was $19.94 million at the end of March 31, almost unchanged from the same period last year

Mr. Xiaoming Hu, Chairman and CEO of the Company commented, "The first quarter has been our slowest quarter due to the Chinese New Year Holiday. However, we are still pretty happy about our steady financial results. As we anticipate that 2013 will be Kandi's breakout year, we have successfully started our expansion plan in Shandong and Hainan, as well as enhanced our brand and profile via a joint venture with Geely Auto. We are confident that our efforts will help Kandi's leadership position in the emerging EV market."

"Given our new manufacturing facility in Changxing with full scale production and assembly line, coupled with Geely's experienced operation and marketing team, Kandi will assure its continuous success as China's leading pure EV provider," Mr. Hu concluded.

KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)

		Three Months Ended
		31-Mar-13		31-Mar-12
REVENUES, NET	$	14,662,521	$	14,355,541

COST OF GOODS SOLD		-11,290,490		-11,014,691

GROSS PROFIT		3,372,031		3,340,850
Research and development		-689,665		-756,096
Selling and marketing		-89,614		-93,835
General and administrative		-692,964		-683,620

INCOME FROM CONTINUING OPERATIONS		1,899,788		1,807,299
Interest(expense) income, net		-670,208		131,602
Change in fair value of financial instruments		990,395		942,950
Government grants		-		-
Investment (loss) income		-14,023		-13,401
Other income, net		122,365		34,468

INCOME (LOSS) BEFORE INCOME TAXES		2,328,317		2,902,918

INCOME TAX EXPENSE		-91,444		-519,966

NET INCOME		2,236,873		2,382,952

OTHER COMPREHENSIVE INCOME
Foreign currency translation		584,915		395,416

COMPREHENSIVE INCOME (LOSS)	$	2,821,788	$	2,778,368

WEIGHTED AVERAGE SHARES OUTSTANDING BASIC		32,298,832		27,450,371

WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED		32,539,339		28,839,747

NET INCOME PER SHARE, BASIC	$	0.07	$	0.09

NET INCOME PER SHARE, DILUTED	$	0.07	$	0.08

KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS
		March 31,		December 31,
		2013		2012
		(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	3,987,688	$	12,135,096
Restricted cash		7,962,583		15,835,364
Accounts receivable		38,185,652		33,557,534
Inventories (net of reserve for slow moving inventory of $0 and $56,248 as of March 31, 2013and December 31, 2012 respectively)		10,575,936		7,630,715
Notes receivable		11,556,942		9,562,429
Other receivables		592,408		501,448
Prepayments and prepaid expenses		578,840		563,861
Due from employees		47,467		40,936
Advances to suppliers		2,065,293		4,769,825
Deferred tax		91,897		-
Deposit for acquisition		38,644,613		24,397,967
Total Current Assets		114,289,319		108,995,175

LONG-TERM ASSETS
Plant and equipment, net		33,927,019		35,725,740
Land use rights, net		14,329,219		14,337,691
Construction in progress		-		-
Deferred taxes		1,301		695
Investment in associated companies		148,361		161,507
Goodwill		322,591		322,591
Intangible assets		721,067		741,591
Total Long-Term Assets		49,449,558		51,289,815

TOTAL ASSETS	$	163,738,877	$	160,284,990

LIABILITIES AND STOCKHOLDERS' EQUITY
		March 31,		December 31,
		2013		2012
		(Unaudited)
CURRENT LIABILITIES
Accounts payable	$	10,708,090	$	8,668,478
Other payables and accrued expenses		3,021,231		3,092,045
Short-term bank loans		32,794,193		32,615,063
Customer deposits		25,470		292,389
Notes payable, net of discount of $0 and $0 as of March 31, 2013 and December 31, 2012 respectively		22,287,315		25,332,088
Income tax payable		258,594		680,253
Due to employees		11,058		7,132
Due to related party		841,251		841,251
Deferred taxes		-		55,166
Financial derivate - liability		449,559		1,513,013
Total Current Liabilities		70,396,761		73,096,878

LONG-TERM LIABILITIES
Bond payable		12,735,609		12,666,044
Financial derivatives - liability				-
Total Long-Term Liabilities		12,735,609		12,666,044

TOTAL LIABILITIES		83,132,370		85,762,922

STOCKHOLDERS' EQUITY
Common stock, $0.001 par value; 100,000,000 shares authorized; 32,539,867and 31,696,794 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively		32,540		31,697
Additional paid-in capital		46,990,026		43,728,218
Retained earnings (the restricted portion is $2,831,005 and $2,831,005 at March 31, 2013 and December 31, 2012, respectively)		27,496,682		25,259,809
Accumulated other comprehensive income		6,087,259		5,502,344
TOTAL STOCKHOLDERS' EQUITY		80,606,507		74,522,068
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	163,738,877	$	160,284,990

KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

		Three Months Ended March 31
		2013		2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	2,236,873	$	2,382,952
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization		2,109,977		1,200,884
Deferred taxes		-144,911		-24,184
Option expense		-		19,053
Change of derivative instrument's fair value		-990,395		-942,950
Loss in investment in associated company		14,023		13,401

Changes in operating assets and liabilities:
(Increase) Decrease In:
Accounts receivable		-4,440,829		-2,626,288
Inventories		-2,901,362		-1,470,587
Other receivables and prepaid expenses		-88,166		1,121,239
Due from employees		-2,418		220,807
Prepayments and prepaid expenses		2,717,021		-1,337,864

Increase (Decrease) In:
Accounts payable		1,990,665		308,069
Other payables and accrued liabilities		-85,177		-2,530,325
Customer deposits		-268,344		-998,466
Income tax payable		-425,109		365,152
Net cash (used in) provided by operating activities	$	-278,152	$	-4,299,107

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of plant and equipment		-8,698		-16,512
Purchase of construction in progress		-		-181,009
Issuance of notes receivable		-1,940,690		-
Repayments of notes receivable		-		18,032,672
Deposit for acquisition		- 14,103,172		-
Net cash provided by (used in) investing activities	$	- 16,052,560	$	17,835,151

CASH FLOWS FROM FINANCING ACTIVITIES:
Restricted cash	$	7,954,409	$	- 15,758,880
Proceeds from short-term bank loans		12,727,059		6,297,349
Repayments of short-term bank loans		- 12,727,059		-6,328,994
Proceeds from notes payable		-		8,686,544
Repayments of notes payable		-3,181,765		-3,752,827
Warrant exercise		3,244,318		-
Option exercise & other financing		38,100		40,749
Net cash provided by financing activities		8,055,062		- 10,816,059

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		-8,275,650		2,719,985
Effect of exchange rate changes on cash		128,242		3,173
Cash and cash equivalents at beginning of period		12,135,096		2,294,352
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	3,987,688	$	5,017,510

SUPPLEMENTARY CASH FLOW INFORMATION
Income taxes paid	$	516,554	$	154,814
Interest paid	$	553,089	$	648,059

SUPPLEMENTAL NON-CASH DISCLOSURE:

During the three months ended March 31, 2013 and 2012, $0and $0 were transferred from construction in progress to plant and equipment, respectively.

About Kandi Technologies Group, Inc.

Kandi Technologies Group, Inc. (NASDAQ: KNDI), headquartered in Jinhua, Zhejiang Province, is engaged in the research and development, manufacturing and sales of various vehicles. Kandi has established itself as the one of the world's largest manufacturer of pure electric vehicles (EVs), Go-Kart vehicles, and tricycle and utility vehicles (UTVs), among others. More information can be viewed at its corporate website is http://www.kandivehicle.com.

Safe Harbor Statement

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Contact:

Kandi Technologies Group, Inc.

China:
Email: IR@kandigroup.com
Phone: 86-579-82239856

U.S.A.:
Email: IR@kandigroup.com
Phone: 1-212-551-3610

Source: Kandi Technologies, Corp.

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Kandi Technologies Reports First Quarter 2013 Financial Results

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