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Kandi Technologies Reports First Quarter 2015 Financial Results
May 11, 2015 8:00 AM EDT | Source: Kandi Technologies, Corp.
- Q1 GAAP Net Income Increased to $6.1 Million from ($14.1) Million in Q1 2014
- Q1 GAAP EPS increased to $0.13 from ($0.36) in Q1 2014
Jinhua, China--(Newsfile Corp. - May 11, 2015) - Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (the "Company" or "Kandi"), today announced its financial results for the quarter ended March 31, 2015.
2015 First Quarter Highlights
Total revenues grew 9.0% to $43.8 million for the first quarter of 2015 from $40.2 million for the first quarter of 2014;
Electric Vehicle ("EV") Parts sales increased by 71.3% to $43.0 million for the first quarter of 2015 compared to $25.1 million in the same period of 2014;
The first quarter sales for our joint venture company, Kandi Electric Vehicles Group Co., Ltd. (the "JV Company")1, were $30.6 million, with net income of $0.8 million. Based on Kandi's 50% equity ownership in the JV Company, Kandi recorded $0.5 million in net income (after tax and intra-entity elimination) for the first quarter of 2015;
The JV Company sold 1,670 EV products during the first quarter of 2015, 37.4% increase compared to 1,215 EV products sold in the same quarter of 2014;
GAAP net income for the first quarter of 2015 was $6.1 million, or approximately $0.13 per fully diluted share, increased from a net loss of $14.1 million, or approximately ($0.36) in the first quarter of 2014;
Non-GAAP adjusted net income2, which excludes stock award expense and change in the fair value of financial derivatives, was $3.4 million, or approximately $0.07 per fully diluted share, a 108.1% increase from $1.6 million in the first quarter of 2014;
Working capital surplus was $40.9 million as of March 31, 2015, compared to $39.2 million as of December 31, 2014;
Cash, cash equivalents and restricted cash totaled $41.1 million as of March 31, 2015 compared to $39.4 million as of December 31, 2014;
Mr. Xiaoming Hu, Chairman and Chief Executive Officer of Kandi Technologies commented: "We achieved solid growth in the first quarter of 2015 throughout our business, including the car-share projects, which continues to be a key growth driver for the Company this year. At the same time, our JV Company has started direct sales to consumers in April 2015, in order to meet the fast growing market demand in China, with great support from the Government, which will contribute to the Company's future growth and profitability."
"We are pleased with the good financial results in the first quarter of 2015, compared to the same quarter last year," added Mr. Wang Cheng, Chief Financial Officer of Kandi Technologies. "We had both revenue growth and margin improvement, which contributed to our net profits. We will continue to implement our cost reduction program throughout the Company and leverage internal production efficiencies, in order to generate stable profitability over the long term."
First Quarter 2015 Conference Call Details
The Company has scheduled a conference call and live webcast to discuss the financial results at 10:00 AM (U.S. EDT) on May 11, 2015 (10:00 PM Beijing time on May 11, 2015). 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: 13609244
Webcast and replay: http://public.viavid.com/index.php?id=114525
The live audio webcast of the call can also be accessed by visiting Kandi's Investor Relations website at http://en.kandivehicle.com in Investor Relations section. An archive of the webcast will be available on the Company's website following the live call.
__________________________________
1 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")
2 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.
KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
COMPREHENSIVE INCOME (LOSS)
| Three Months Ended | ||||||
| March 31, 2015 | March 31, 2014 | |||||
| REVENUES, NET | $ | 43,781,086 | $ | 40,171,304 | ||
|
| ||||||
| COST OF GOODS SOLD | 37,410,353 | 35,310,895 | ||||
|
| ||||||
| GROSS PROFIT | 6,370,733 | 4,860,409 | ||||
|
| ||||||
| OPERATING EXPENSES: | ||||||
| Research and development | 571,020 | 1,172,257 | ||||
| Selling and marketing | 113,895 | 71,257 | ||||
| General and administrative | 3,780,648 | 6,470,766 | ||||
| Total Operating Expenses | 4,465,563 | 7,714,280 | ||||
|
| ||||||
| INCOME FROM OPERATIONS | 1,905,170 | (2,853,871 | ) | |||
|
| ||||||
| OTHER INCOME(EXPENSE): | ||||||
| Interest income | 590,480 | 483,293 | ||||
| Interest (expense) | (598,591 | ) | (954,473 | ) | ||
| Change in fair value of financial instruments | 4,750,300 | (12,314,171 | ) | |||
| Government grants | - | - | ||||
| Share of (loss) in associated companies | - | (15,805 | ) | |||
| Share of profit after tax of JV | 469,356 | 1,728,356 | ||||
| Other income, net | 23,847 | 59,580 | ||||
| Total other income(expense), net | 5,235,392 | (11,013,220 | ) | |||
|
| ||||||
| INCOME(LOSS) BEFORE INCOME TAXES | 7,140,562 | (13,867,091 | ) | |||
|
| ||||||
| INCOME TAX EXPENSE | (1,008,909 | ) | (219,069 | ) | ||
|
| ||||||
| NET INCOME (LOSS) | 6,131,653 | (14,086,160 | ) | |||
|
| ||||||
| OTHER COMPREHENSIVE INCOME | ||||||
| Foreign currency translation | 493,211 | (1,211,116 | ) | |||
|
| ||||||
| COMPREHENSIVE INCOME(LOSS) | $ | 6,624,864 | $ | (15,297,276 | ) | |
| WEIGHTED AVERAGE SHARES | 46,281,299 | 39,597,785 | ||||
| WEIGHTED AVERAGE SHARES | 46,397,993 | 39,597,785 | ||||
|
| ||||||
| NET INCOME(LOSS) PER SHARE, BASIC | $ | 0.13 | $ | (0.36 | ) | |
| NET INCOME(LOSS) PER SHARE, DILUTED | $ | 0.13 | $ | (0.36 | ) | |
|
| ||||||
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
| March 31, 2015 | December 31, 2014 | |||||
|
| ||||||
| Current assets | ||||||
| Cash on cash equivalents | $ | 15,635,658 | $ | 26,379,460 | ||
| Restricted cash | 25,454,249 | 13,000,731 | ||||
| Accounts receivable | 28,679,895 | 15,736,805 | ||||
| Inventories (net of provision for slow moving inventory of 316,686 | 26,742,009 | 15,403,840 | ||||
| Notes receivable | 10,739,366 | 9,060,441 | ||||
| Other receivables | 323,925 | 238,567 | ||||
| Prepayments and prepaid expense | 462,058 | 120,761 | ||||
| Due from employees | 40,084 | 34,475 | ||||
| Advances to suppliers | 7,112,895 | 6,901,505 | ||||
| Amount due from JV Company, net | 71,267,257 | 51,450,612 | ||||
| Deferred taxes assets | - | |||||
| TOTAL CURRENT ASSETS | 186,457,396 | 138,327,197 | ||||
|
| ||||||
| LONG-TERM ASSETS | ||||||
| Plant and equipment, net | 25,174,878 | 26,215,356 | ||||
| Land use rights, net | 15,606,056 | 15,649,152 | ||||
| Construction in progress | 58,753,641 | 58,510,051 | ||||
| Deferred taxes assets | - | - | ||||
| Investment in associated company | - | - | ||||
| Investment in JV Company | 84,070,778 | 83,309,095 | ||||
| Goodwill | 322,591 | 322,591 | ||||
| Intangible assets | 556,877 | 577,401 | ||||
| Other long term assets | 163,076 | 162,509 | ||||
| TOTAL Long-Term Assets | 184,647,897 | 184,746,155 | ||||
|
| ||||||
| TOTAL ASSETS | $ | 371,105,293 | $ | 323,073,352 | ||
|
|
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
| March 31, 2015 | December 31, 2014 | |||||
| CURRENT LIABILITIES | ||||||
| Accounts payables | $ | 77,954,005 | $ | 45,772,481 | ||
| Other payables and accrued expenses | 3,803,523 | 5,101,740 | ||||
| Short-term loans | 42,073,678 | 35,589,502 | ||||
| Customer deposits | 2,641,274 | 2,630,723 | ||||
| Notes payable | 12,408,147 | 5,702,121 | ||||
| Income tax payable | 1,711,161 | 1,835,685 | ||||
| Due to employees | 11,071 | 15,787 | ||||
| Deferred taxes liabilities | 132,399 | 230,864 | ||||
| Financial derivate - liability | 4,800,169 | 2,245,610 | ||||
| Total Current Liabilities | 145,535,427 | 99,124,513 | ||||
|
| ||||||
| LONG-TERM LIABILITIES | ||||||
| Deferred taxes liabilities | 2,543,821 | 2,266,725 | ||||
| Bond payable | - | - | ||||
| Financial derivate - liability | 2,792,416 | 10,097,275 | ||||
| Total Long-Term Liabilities | 5,336,237 | 12,364,000 | ||||
|
| ||||||
| TOTAL LIABILITIES | 150,871,664 | 111,488,513 | ||||
|
| ||||||
| STOCKHOLDER'S EQUITY | ||||||
| Common stock, $0.001 par value; 100,000,000 shares authorized; | 46,285 | 46,275 | ||||
| Additional paid-in capital | 192,281,953 | 190,258,037 | ||||
|
| ||||||
| Retained earnings (the restricted portion is $4,172,324 and | 22,522,077 | 16,390,424 | ||||
| Accumulated other comprehensive income(loss) | 5,383,314 | 4,890,103 | ||||
| TOTAL STOCKHOLDERS' EQUITY | 220,233,629 | 211,584,839 | ||||
|
| ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 371,105,293 | $ | 323,073,352 | ||
|
|
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three Months Ended | ||||||
| March 31, 2015 | March 31, 2014 | |||||
|
| ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
| Net income(loss) | $ | 6,131,653 | $ | (14,086,160 | ) | |
| Adjustments to reconcile net income to net cash provided | ||||||
| Depreciation and amortization | 1,479,384 | 1,386,527 | ||||
| Assets Impairments | - | - | ||||
| Deferred taxes | - | 44,801 | ||||
| Change in fair value of financial instruments | (4,750,300 | ) | 12,314,171 | |||
| Loss (income) in investment in associated companies | - | 15,805 | ||||
| Share of profit after tax of JV Company | (469,356 | ) | (1,728,356 | ) | ||
| Decrease in reserve for fixed assets | - | - | ||||
| Stock Compensation cost | 2,049,683 | - | ||||
|
| ||||||
| Changes in operating assets and liabilities, net of | ||||||
| (Increase) Decrease In: | ||||||
| Accounts receivable | (12,844,602 | ) | 8,501,760 | |||
| Inventories | (11,246,265 | ) | (4,567,411 | ) | ||
| Other receivables | (65,602 | ) | (154,488 | ) | ||
| Due from employee | (10,225 | ) | (9,402 | ) | ||
| Prepayments and prepaid expenses | (527,687 | ) | (7,691,861 | ) | ||
| Amount due from JV Company | (19,570,708 | ) | (18,868,380 | ) | ||
|
| ||||||
| Increase (Decrease) In: | ||||||
| Accounts payable | 31,915,168 | 21,589,347 | ||||
| Other payables and accrued liabilities | (1,438,571 | ) | 930,528 | |||
| Customer deposits | 1,365 | 92,022 | ||||
| Income Tax payable | (130,488 | ) | (815,354 | ) | ||
| Due to related party | - | - | ||||
| Net cash (used in ) provided by operating activities | $ | (9,476,551 | ) | $ | (3,046,451 | ) |
|
| ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
| (Purchases)/Disposal of plant and equipment, net | (233,343 | ) | (119,476 | ) | ||
| Purchases of land use rights | - | - | ||||
| Purchases of construction in progress | (39,266 | ) | - | |||
| Deposit for acquisition | - | - | ||||
| Asset acquisition, net of deposit | - | - | ||||
| Issuance of notes receivable | (4,225,884 | ) | (21,553,430 | ) | ||
| Repayment of notes receivable | 2,584,147 | - | ||||
| Investment in JV Company | - | - | ||||
| Cash acquired in acquisition | - | - | ||||
| Net cash provided by (used in) investing activities | $ | (1,914,346 | ) | $ | (21,672,906 | ) |
|
| ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
| Restricted cash | (12,366,201 | ) | 1,634 | |||
| Proceeds from short-term bank loans | 6,338,475 | 817,013 | ||||
| Repayments of short-term bank loans | - | (817,013 | ) | |||
| Proceeds from notes payable | 6,663,525 | (1,960,832 | ) | |||
| Fund raising through issuing common stock and warrants | - | 11,067,734 | ||||
| Option exercise Cstock awards & other financing | - | 3,066,081 | ||||
| Warrant exercise | - | 20,484,279 | ||||
| Common stock issued for acquisition, net of cost of capital | ||||||
| Net cash (used in) provided by financing activities | 635,799 | 32,658,896 | ||||
|
| ||||||
| NET INCREASE IN CASH AND CASH | ||||||
|
| (10,755,098 | ) | 7,939,539 | |||
| EQUIVALENTS | ||||||
| Effect of exchange rate changes on cash | 11,296 | (203,633 | ) | |||
| Cash and cash equivalents at beginning of year | 26,379,460 | 12,762,369 | ||||
|
| ||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | 15,635,658 | 20,498,275 | ||||
|
| ||||||
| SUPPLEMENTARY CASH FLOW INFORMATION | ||||||
| Income taxes paid | 1,139,397 | 1,034,422 | ||||
| Interest paid | 577,874 | 580,044 | ||||
|
| ||||||
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 (through its joint venture), 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.
Company Contact:
Ms. Kewa Luo
Kandi Technologies Group, Inc.
Phone: 1-212-551-3610
Email: IR@kandigroup.com
IR Contact:
Mr. Matthew Abenante
The Piacente Group
Phone: 1-212-481-2050
Email: kandi@tpg-ir.com