Q1 revenue increased 95.0% YoY to $8.3 million - Q1 JV sold 3,295 EV products.
Q1 GAAP net income achieved $3.7 million, or $0.07 EPS compared to GAAP net loss of $24.2 million, or $0.51 loss per share.
Jinhua, China - May 10, 2018 (Newsfile Corp.) (Investorideas.com Newswire) Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (the "Company," "we" or "Kandi"), today announced its financial results for the first quarter of 2018.
First Quarter Highlights
Mr. Hu Xiaoming, Chairman and Chief Executive Officer of Kandi, commented, "We have taken strides to accelerate our EV sales and we are very pleased with our strong performance given the first quarter being a slow season. In March, the JV Company unveiled its first all-electric SUV model Geely Global HawkEX3, although it is not yet in production, there has already been overwhelming requests from interested dealers. At the end of March, Kandi Model K23 production was launched and sales are expected to be advanced in the second half of 2018. We are confident in these new EV products becoming a driving force that will fuel the growth of Kandi's EV business."
"In the first quarter, we completed the acquisition of Jinhua An Kao Power Technology Co., Ltd. and have consolidated its financial statements. An Kao's unique system of pure electric car battery replacement technology is a major step forward to our existing EV offering. The acquisition is expected to generate additional revenues and provide a considerably competitive advantage in product delivery and services that will lead to market share gain. Looking forward, we expect continued momentum of Kandi's EV business to a new phase of growth in 2018." Mr. Hu concluded.
Net Revenues and Gross Profit
Net revenues for the first quarter increased 95.0%compared to the same period last year. The increase in revenue was mainly due to the increase in EV parts sales during this quarter.
Operating Income (Loss)
Total operating expenses in the first quarter were $1.1 million, compared with $29.4 million in the same quarter of 2017. The decrease in total operating expenses was primarily due to decreased research and development, which was$0.8 million in this quarter, compared with $20.8 million in the same quarter last year.
GAAP Net Income
Net income was $3.7 million in the first quarter, compared with net loss of $24.2 million in the same quarter of 2017. The increase was primarily attributable to increased sales and gross profits, increased profits from the JV Company and significantly decreased R&D expenses this period.
Non-GAAP net loss was $0.6million, a 97.4% decreased loss in the first quarter of 2018 compared to net loss of $21.7 million in the same quarter of 2017. The decrease in Non-GAAP net loss was primarily attributable to increased sales and gross profits, increased profits from the JV Company and significantly decreased R&D expenses this period.
JV Company Financial Results
In the first quarter, the JV Company sold a total of 3,295 units of EV products, compared to no EV product sales in the same period of 2017.In this quarter, total revenue was $33.8 million as compared to $1.3 million for the quarter ended March 31, 2017.
The condensed financial income statement of the JV Company in the first quarter is as below:
Kandi's 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 Company's income for $0.5 million for this quarter. After eliminating intra-entity profits and losses, Kandi's share of the after tax profit of the JV Company was $0.8 million for the first quarter of 2018.
First Quarter of 2018 Conference Call Details
The Company has scheduled a conference call and live webcast to discuss its financial results at 8:00 A.M. Eastern Time (8:00 P.M. Beijing Time) on May 10, 2018. Mr. Hu Xiaoming, Chief Executive Officer of the Company, and Mr. Mei Bing, Chief Financial Officer of the Company, will deliver prepared remarks to be followed by a question and answer session.
The dial-in details for the conference call are as follows:
The live audio webcast 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, 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
Ms. Kewa Luo
Kandi Technologies Group, Inc.
1. Non-GAAP measures, including the Non-GAAP net income (loss) and Non-GAAP EPS are defined as the financial measures excluding the change of the fair value of contingent consideration and the effects of the stock compensation 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.
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