- Steady Growth in Off-road Vehicles
- Revenue growth drove significantly narrowed loss
JINHUA, China, Nov. 08, 2022 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the third quarter of 2022.
Third Quarter Highlights
- Total revenues of $33.7 million compared to $16.8 million in the same period of 2021.
- Off-road vehicles and associated parts sales increased by 217.6% to $21.7 million, compared to $6.8 million in the same period of 2021.
- EV products sales increased significantly to $1.7 million from $0.3 million in the same period of 2021.
- EV parts sales were $2.6 million, compared to $3.2 million in the same period of 2021.
- Electric Scooters, Electric Self-Balancing Scooters and associated parts sales were $1.2 million, compared with $6.3 million in the same period of 2021.
- Net income was $1.1 million, or $0.01 income per fully diluted share, compared to a net loss of $7.9 million, or $0.10 loss per fully diluted share for the same period of 2021. A turn to profitability from loss was largely attributed to higher total revenue, resulted from highly performed off-road vehicles and associated parts sales, and lower operating expenses.
- Working capital totaled $252.9 million as of September 30, 2022
- Cash and equivalents, restricted cash, and certificate of deposit totaled $210.2 million as of September 30, 2022
Mr. Hu Xiaoming, Chairman and CEO of Kandi commented, “During the third quarter, our strategic pivot enabled us to make inroads in electric off-road vehicles. With high market interest in the electrification of off-road vehicles, we successfully developed and delivered “crossover” electric golf carts that are seeing high acceptance by our customers. Growing demand, and positive market feedback gives us more confidence to invest more in electric off-road vehicles. Our next step is to launch more models in the categories of golf crossovers, utility terrain vehicles, and more. We believe that our top line growth and disciplined control of operating expenses can drive improved profitability, which will be increasingly recognized by investors.”
Q3 2022 Financial Results
Net Revenues and Gross Profit (in USD millions)
|
Q3 2022 |
Q3 2021 |
Y-o-Y% |
| Net Revenues |
$33.7 |
$16.8 |
100.5% |
| Gross Profit |
$6.4 |
$2.7 |
131.6% |
| Gross Margin% |
18.9% |
16.4% |
- |
Net revenues of $33.7 million in the third quarter of 2022 increased 100.5% from the same period of 2021. The increase in revenue and gross margin was primarily due to a product mix shift to off-road vehicles, a segment with a higher gross margin that achieved significant growth in the past quarter.
Operating Income/Loss (in USD millions)
|
Q3 2022 |
Q3 2021 |
Y-o-Y% |
| Operating Expenses |
($8.6) |
($11.8) |
27.3% |
| Loss from Operations |
($2.2) |
($9.0) |
75.7% |
| Operating Margin% |
-6.5% |
-53.7% |
- |
Operating expenses were $8.6 million, compared with operating expense of $11.8 million for the same period of 2021. Operating expenses decreased as the Company moved past the 2021 peak research and development effort on new products.
Net Income/Loss (in USD millions)
|
Q3 2022 |
Q3 2021 |
Y-o-Y% |
| Net Income (Loss) |
$1.1 |
($7.9) |
113.6% |
| Net Income (Loss) per Share, Basic and Diluted |
$0.01 |
($0.1) |
- |
Net income was $1.1 million comparing to a net loss of $7.9 million for the same period of 2021. The turn to profitability was primarily due to higher total revenue and lower operating expenses.
Third Quarter 2022 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 (9:00 P.M. Beijing Time) on Tuesday, November 8, 2022. Management 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 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 Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”), formerly, Zhejiang Kandi Vehicles Co., Ltd. and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC. Zhejiang Kandi Technologies has established itself as one of China's leading manufacturers of pure electric vehicle parts and off-road vehicles.
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
Contacts:
Kandi Technologies Group, Inc.
Ms. Kewa Luo
+1 (212) 551-3610
IR@kandigroup.com
The Blueshirt Group
Mr. Gary Dvorchak, CFA
gary@blueshirtgroup.com
- Tables Below -
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
September 30,
2022 |
|
|
December 31,
2021 |
|
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
99,029,118 |
|
|
$ |
129,223,443 |
|
| Restricted cash |
|
|
40,855,710 |
|
|
|
39,452,564 |
|
| Certificate of deposit |
|
|
70,324,477 |
|
|
|
55,041,832 |
|
| Accounts receivable (net of allowance for doubtful accounts of $2,734,642 and $3,053,277 as of September 30, 2022 and December 31, 2021, respectively) |
|
|
40,034,961 |
|
|
|
52,896,305 |
|
| Inventories |
|
|
43,673,888 |
|
|
|
33,171,973 |
|
| Notes receivable |
|
|
1,371,773 |
|
|
|
323,128 |
|
| Other receivables |
|
|
19,293,487 |
|
|
|
8,901,109 |
|
| Prepayments and prepaid expense |
|
|
4,006,808 |
|
|
|
17,657,326 |
|
| Advances to suppliers |
|
|
5,800,659 |
|
|
|
5,940,456 |
|
| TOTAL CURRENT ASSETS |
|
|
324,390,881 |
|
|
|
342,608,136 |
|
|
|
|
|
|
|
|
|
|
| NON-CURRENT ASSETS |
|
|
|
|
|
|
|
|
| Property, plant and equipment, net |
|
|
94,908,520 |
|
|
|
111,577,411 |
|
| Intangible assets, net |
|
|
10,785,106 |
|
|
|
13,249,079 |
|
| Land use rights, net |
|
|
2,843,944 |
|
|
|
3,250,336 |
|
| Construction in progress |
|
|
329,726 |
|
|
|
79,317 |
|
| Deferred tax assets |
|
|
2,171,890 |
|
|
|
2,219,297 |
|
| Long-term investment |
|
|
140,649 |
|
|
|
157,262 |
|
| Goodwill |
|
|
32,960,659 |
|
|
|
36,027,425 |
|
| Other long-term assets |
|
|
10,423,361 |
|
|
|
10,992,009 |
|
| TOTAL NON-CURRENT ASSETS |
|
|
154,563,855 |
|
|
|
177,552,136 |
|
|
|
|
|
|
|
|
|
|
| TOTAL ASSETS |
|
$ |
478,954,736 |
|
|
$ |
520,160,272 |
|
|
|
|
|
|
|
|
|
|
| CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| Accounts payable |
|
$ |
33,281,208 |
|
|
$ |
36,677,802 |
|
| Other payables and accrued expenses |
|
|
7,894,152 |
|
|
|
9,676,973 |
|
| Short-term loans |
|
|
5,604,312 |
|
|
|
950,000 |
|
| Notes payable |
|
|
17,170,279 |
|
|
|
8,198,193 |
|
| Income tax payable |
|
|
1,121,744 |
|
|
|
1,620,827 |
|
| Other current liabilities |
|
|
6,425,151 |
|
|
|
7,038,895 |
|
| TOTAL CURRENT LIABILITIES |
|
|
71,496,846 |
|
|
|
64,162,690 |
|
|
|
|
|
|
|
|
|
|
| NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| Long-term loans |
|
|
2,210,589 |
|
|
|
2,210,589 |
|
| Deferred taxes liability |
|
|
2,462,901 |
|
|
|
2,460,141 |
|
| Contingent consideration liability |
|
|
3,266,000 |
|
|
|
7,812,000 |
|
| Other long-term liabilities |
|
|
777,211 |
|
|
|
314,525 |
|
| TOTAL NON-CURRENT LIABILITIES |
|
|
8,716,701 |
|
|
|
12,797,255 |
|
|
|
|
|
|
|
|
|
|
| TOTAL LIABILITIES |
|
|
80,213,547 |
|
|
|
76,959,945 |
|
|
|
|
|
|
|
|
|
|
| STOCKHOLDER’S EQUITY |
|
|
|
|
|
|
|
|
| Common stock, $0.001 par value; 100,000,000 shares authorized; 77,658,730 and 77,385,130 shares issued and 75,343,594 and 76,705,381 outstanding at September 30,2022 and December 31,2021, respectively |
|
|
77,659 |
|
|
|
77,385 |
|
| Less: Treasury stock (2,315,136 shares with average price of $2.96 and 679,749 shares with average price of $3.52 at September 30,2022 and December 31,2021, respectively ) |
|
|
(6,848,731 |
) |
|
|
(2,392,203 |
) |
| Additional paid-in capital |
|
|
450,380,994 |
|
|
|
449,479,461 |
|
| Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at September 30,2022 and December 31,2021, respectively) |
|
|
(7,390,410 |
) |
|
|
(4,216,102 |
) |
| Accumulated other comprehensive loss |
|
|
(39,637,503 |
) |
|
|
251,786 |
|
| TOTAL KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS’ EQUITY |
|
|
396,582,009 |
|
|
|
443,200,327 |
|
|
|
|
|
|
|
|
|
|
| Non-controlling interests |
|
|
2,159,180 |
|
|
|
- |
|
| TOTAL STOCKHOLDERS’ EQUITY |
|
|
398,741,189 |
|
|
|
443,200,327 |
|
|
|
|
|
|
|
|
|
|
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
478,954,736 |
|
|
$ |
520,160,272 |
|
|
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30,
2022 |
|
|
September 30,
2021 |
|
|
September 30,
2022 |
|
|
September 30,
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| REVENUES FROM UNRELATED PARTIES, NET |
|
$ |
33,673,201 |
|
|
$ |
16,795,712 |
|
|
$ |
79,405,788 |
|
|
$ |
62,647,714 |
|
| REVENUES FROM THE FORMER AFFILIATE COMPANY AND RELATED PARTIES, NET |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| REVENUES, NET |
|
|
33,673,201 |
|
|
|
16,795,712 |
|
|
|
79,405,788 |
|
|
|
62,649,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| COST OF GOODS SOLD |
|
|
(27,304,038 |
) |
|
|
(14,046,041 |
) |
|
|
(67,930,595 |
) |
|
|
(49,447,497 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GROSS PROFIT |
|
|
6,369,163 |
|
|
|
2,749,671 |
|
|
|
11,475,193 |
|
|
|
13,201,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OPERATING INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Research and development |
|
|
(1,433,649 |
) |
|
|
(6,747,934 |
) |
|
|
(3,828,078 |
) |
|
|
(31,937,436 |
) |
| Selling and marketing |
|
|
(1,440,995 |
) |
|
|
(1,290,544 |
) |
|
|
(3,807,222 |
) |
|
|
(3,494,927 |
) |
| General and administrative |
|
|
(5,686,233 |
) |
|
|
(3,733,230 |
) |
|
|
(18,016,843 |
) |
|
|
(13,522,925 |
) |
| Gain on disposal of long-lived assets |
|
|
- |
|
|
|
2,238 |
|
|
|
- |
|
|
|
48,255,905 |
|
| TOTAL OPERATING EXPENSE |
|
|
(8,560,877 |
) |
|
|
(11,769,470 |
) |
|
|
(25,652,143 |
) |
|
|
(699,383 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (LOSS) INCOME FROM OPERATIONS |
|
|
(2,191,714 |
) |
|
|
(9,019,799 |
) |
|
|
(14,176,950 |
) |
|
|
12,502,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
|
2,138,130 |
|
|
|
1,247,544 |
|
|
|
4,739,208 |
|
|
|
2,750,241 |
|
| Interest expense |
|
|
(177,417 |
) |
|
|
(63,368 |
) |
|
|
(463,994 |
) |
|
|
(267,785 |
) |
| Change in fair value of contingent consideration |
|
|
434,995 |
|
|
|
- |
|
|
|
2,733,995 |
|
|
|
- |
|
| Government grants |
|
|
829,539 |
|
|
|
220,967 |
|
|
|
1,536,856 |
|
|
|
570,162 |
|
| Gain from sale of equity in the Former Affiliate Company |
|
|
- |
|
|
|
822 |
|
|
|
- |
|
|
|
17,734,733 |
|
| Share of loss after tax of the Former Affiliate Company |
|
|
- |
|
|
|
(119 |
) |
|
|
- |
|
|
|
(2,584,520 |
) |
| Other income, net |
|
|
536,726 |
|
|
|
442,102 |
|
|
|
2,954,036 |
|
|
|
4,768,092 |
|
| TOTAL OTHER INCOME, NET |
|
|
3,761,973 |
|
|
|
1,847,948 |
|
|
|
11,500,101 |
|
|
|
22,970,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) BEFORE INCOME TAXES |
|
|
1,570,259 |
|
|
|
(7,171,851 |
) |
|
|
(2,676,849 |
) |
|
|
35,473,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME TAX (EXPENSE) BENEFIT |
|
|
(497,211 |
) |
|
|
(696,968 |
) |
|
|
255,232 |
|
|
|
(8,815,409 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME (LOSS) |
|
|
1,073,048 |
|
|
|
(7,868,819 |
) |
|
|
(2,421,617 |
) |
|
|
26,657,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LESS: NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS |
|
|
694,029 |
|
|
|
- |
|
|
|
752,691 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME (LOSS) ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS |
|
|
379,019 |
|
|
|
(7,868,819 |
) |
|
|
(3,174,308 |
) |
|
|
26,657,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OTHER COMPREHENSIVE INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Foreign currency translation adjustment |
|
|
(20,932,870 |
) |
|
|
(116,054 |
) |
|
|
(39,889,289 |
) |
|
|
3,582,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| COMPREHENSIVE (LOSS) INCOME |
|
$ |
(19,859,822 |
) |
|
$ |
(7,984,873 |
) |
|
$ |
(42,310,906 |
) |
|
$ |
30,240,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC |
|
|
75,741,399 |
|
|
|
76,394,573 |
|
|
|
75,962,899 |
|
|
|
75,766,749 |
|
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED |
|
|
75,885,630 |
|
|
|
76,394,573 |
|
|
|
76,061,190 |
|
|
|
75,766,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME (LOSS) PER SHARE, BASIC |
|
$ |
0.01 |
|
|
$ |
(0.10 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.35 |
|
| NET INCOME (LOSS) PER SHARE, DILUTED |
|
$ |
0.01 |
|
|
$ |
(0.10 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED 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 |
|
|
Non-controlling
interests |
|
|
Total |
|
| Balance, December 31, 2020 |
|
|
75,377,555 |
|
|
$ |
75,377 |
|
|
$ |
- |
|
|
$ |
439,549,338 |
|
|
$ |
(27,079,900 |
) |
|
$ |
(8,778,151 |
) |
|
$ |
- |
|
|
$ |
403,766,664 |
|
| Stock issuance and award |
|
|
10,000 |
|
|
|
10 |
|
|
|
- |
|
|
|
22,290 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
22,300 |
|
| Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(6,402,720 |
) |
|
|
- |
|
|
|
- |
|
|
|
(6,402,720 |
) |
| Foreign currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,176,013 |
) |
|
|
- |
|
|
|
(1,176,013 |
) |
| Reversal of reduction in the Former Affiliate Company’s equity (net of tax effect of $491,400) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,771,652 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,771,652 |
|
| Balance, March 31, 2021 |
|
|
75,387,555 |
|
|
$ |
75,387 |
|
|
$ |
- |
|
|
$ |
442,343,280 |
|
|
$ |
(33,482,620 |
) |
|
$ |
(9,954,164 |
) |
|
$ |
- |
|
|
$ |
398,981,883 |
|
| Stock issuance and award |
|
|
238,600 |
|
|
|
239 |
|
|
|
- |
|
|
|
1,374,098 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,374,337 |
|
| Net income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
40,929,474 |
|
|
|
- |
|
|
|
- |
|
|
|
40,929,474 |
|
| Foreign currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,874,815 |
|
|
|
- |
|
|
|
4,874,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance, June 30, 2021 |
|
|
75,626,155 |
|
|
$ |
75,626 |
|
|
$ |
- |
|
|
$ |
443,717,378 |
|
|
$ |
7,446,854 |
|
|
$ |
(5,079,349 |
) |
|
$ |
- |
|
|
$ |
446,160,509 |
|
| Stock issuance and award |
|
|
1,526,817 |
|
|
|
1,527 |
|
|
|
- |
|
|
|
4,874,224 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,875,751 |
|
| Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(7,868,819 |
) |
|
|
- |
|
|
|
- |
|
|
|
(7,868,819 |
) |
| Foreign currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(116,054 |
) |
|
|
- |
|
|
|
(116,054 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance, September 30, 2021 |
|
|
77,152,972 |
|
|
$ |
77,153 |
|
|
$ |
- |
|
|
$ |
448,591,602 |
|
|
$ |
(421,965 |
) |
|
$ |
(5,195,403 |
) |
|
$ |
- |
|
|
$ |
443,051,387 |
|
|
|
|
Number of
Outstanding
Shares |
|
|
Common
Stock |
|
|
Treasury
Stock |
|
|
Additional
Paid-in
Capital |
|
|
Accumulated
Earning
(Deficit) |
|
|
Accumulated
Other
Comprehensive
Income |
|
|
Non-controlling
interests |
|
|
Total |
|
| Balance, December 31, 2021 |
|
|
77,385,130 |
|
|
$ |
77,385 |
|
|
$ |
(2,392,203 |
) |
|
$ |
449,479,461 |
|
|
$ |
(4,216,102 |
) |
|
$ |
251,786 |
|
|
$ |
- |
|
|
$ |
443,200,327 |
|
| Stock issuance and award |
|
|
25,000 |
|
|
|
25 |
|
|
|
- |
|
|
|
92,925 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
92,950 |
|
| Stock buyback |
|
|
- |
|
|
|
- |
|
|
|
(1,570,324 |
) |
|
|
(13,236 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,583,560 |
) |
| Capital contribution from shareholder |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,198,398 |
|
|
|
1,198,398 |
|
| Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,616,056 |
) |
|
|
- |
|
|
|
(2,957 |
) |
|
|
(1,619,013 |
) |
| Foreign currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,009,811 |
|
|
|
- |
|
|
|
1,009,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance, March 31, 2022 |
|
|
77,410,130 |
|
|
$ |
77,410 |
|
|
$ |
(3,962,527 |
) |
|
$ |
449,559,150 |
|
|
$ |
(5,832,158 |
) |
|
$ |
1,261,597 |
|
|
$ |
1,195,441 |
|
|
$ |
442,298,913 |
|
| Stock issuance and award |
|
|
238,600 |
|
|
|
239 |
|
|
|
- |
|
|
|
584,331 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
584,570 |
|
| Stock buyback |
|
|
- |
|
|
|
- |
|
|
|
(1,974,490 |
) |
|
|
(22,578 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,997,068 |
) |
| Net income (loss) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,937,271 |
) |
|
|
- |
|
|
|
61,619 |
|
|
|
(1,875,652 |
) |
| Foreign currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(19,966,230 |
) |
|
|
(63,460 |
) |
|
|
(20,029,690 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance, June 30, 2022 |
|
|
77,648,730 |
|
|
$ |
77,649 |
|
|
$ |
(5,937,017 |
) |
|
$ |
450,120,903 |
|
|
$ |
(7,769,429 |
) |
|
$ |
(18,704,633 |
) |
|
|
1,193,600 |
|
|
$ |
418,981,073 |
|
| Stock issuance and award |
|
|
10,000 |
|
|
|
10 |
|
|
|
- |
|
|
|
22,290 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
22,300 |
|
| Stock based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
250,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
250,673 |
|
| Stock buyback |
|
|
- |
|
|
|
- |
|
|
|
(911,714 |
) |
|
|
(12,872 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(924,586 |
) |
| Capital contribution from shareholder |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
337,557 |
|
|
|
337,557 |
|
| Net income (loss) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
379,019 |
|
|
|
- |
|
|
|
694,029 |
|
|
|
1,073,048 |
|
| Foreign currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(20,932,870 |
) |
|
|
(66,006 |
) |
|
|
(20,998,876 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance, September 30, 2022 |
|
|
77,658,730 |
|
|
$ |
77,659 |
|
|
$ |
(6,848,731 |
) |
|
$ |
450,380,994 |
|
|
$ |
(7,390,410 |
) |
|
$ |
(39,637,503 |
) |
|
|
2,159,180 |
|
|
$ |
398,741,189 |
|
|
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
Nine Months Ended |
|
|
|
September 30,
2022 |
|
|
September 30,
2021 |
|
|
|
|
|
|
|
|
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
| Net (loss) income |
|
$ |
(2,421,617 |
) |
|
$ |
26,657,935 |
|
| Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
9,512,970 |
|
|
|
6,893,192 |
|
| Provision (reversal) of allowance for doubtful accounts |
|
|
4,220 |
|
|
|
- |
|
| Deferred taxes |
|
|
(116,206 |
) |
|
|
(11,970 |
) |
| Share of loss after tax of the Former Affiliate Company |
|
|
- |
|
|
|
2,584,520 |
|
| Gain from equity sale in the Former Affiliate Company |
|
|
- |
|
|
|
(17,734,733 |
) |
| Gain on disposal of long-lived assets |
|
|
- |
|
|
|
(48,255,905 |
) |
| Change in fair value of contingent consideration |
|
|
(2,733,995 |
) |
|
|
- |
|
| Stock award and stock based compensation expense |
|
|
913,288 |
|
|
|
1,452,381 |
|
|
|
|
|
|
|
|
|
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts receivable |
|
|
(20,932,970 |
) |
|
|
4,289,150 |
|
| Notes receivable |
|
|
1,927,621 |
|
|
|
- |
|
| Inventories |
|
|
(13,183,546 |
) |
|
|
(7,443,414 |
) |
| Other receivables and other assets |
|
|
(10,264,805 |
) |
|
|
(17,537,034 |
) |
| Advances to supplier and prepayments and prepaid expenses |
|
|
12,405,615 |
|
|
|
18,776,708 |
|
|
|
|
|
|
|
|
|
|
| Increase (Decrease) In: |
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
46,796,615 |
|
|
|
(4,116,153 |
) |
| Other payables and accrued liabilities |
|
|
4,951,022 |
|
|
|
7,052,572 |
|
| Notes payable |
|
|
(13,574,849 |
) |
|
|
(93,278 |
) |
| Income tax payable |
|
|
(60,313 |
) |
|
|
8,053,977 |
|
| Net cash provided by (used in) operating activities |
|
$ |
13,223,050 |
|
|
$ |
(19,432,052 |
) |
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
| Purchases of property, plant and equipment, net |
|
|
(1,674,445 |
) |
|
|
(10,948,968 |
) |
| Acquisition of Jiangxi Huiyi |
|
|
- |
|
|
|
(3,864,346 |
) |
| Payment for construction in progress |
|
|
(278,777 |
) |
|
|
(4,048,889 |
) |
| Proceeds from disposal of long-lived assets |
|
|
- |
|
|
|
23,235,758 |
|
| (Loan to) Repayment from third party |
|
|
(4,545,386 |
) |
|
|
31,687,637 |
|
| Certificate of deposit |
|
|
(22,726,928 |
) |
|
|
(54,100,844 |
) |
| Proceeds from sales of equity in the Former Affiliate Company |
|
|
- |
|
|
|
47,608,743 |
|
| Long-term Investment |
|
|
- |
|
|
|
(108,202 |
) |
| Advance receipts of equity transfer |
|
|
- |
|
|
|
600,463 |
|
| Net cash (used in) provided by investing activities |
|
$ |
(29,225,536 |
) |
|
$ |
30,061,352 |
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
| Proceeds from short-term loans |
|
|
20,642,224 |
|
|
|
2,630,000 |
|
| Repayments of short-term loans |
|
|
(15,987,912 |
) |
|
|
- |
|
| Contribution from non-controlling shareholder |
|
|
772,716 |
|
|
|
- |
|
| Purchase of treasury stock |
|
|
(4,505,213 |
) |
|
|
- |
|
| Net cash provided by financing activities |
|
$ |
921,815 |
|
|
$ |
2,630,000 |
|
|
|
|
|
|
|
|
|
|
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
|
$ |
(15,080,671 |
) |
|
$ |
13,259,300 |
|
| Effect of exchange rate changes |
|
$ |
(13,710,508 |
) |
|
$ |
990,440 |
|
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR |
|
$ |
168,676,007 |
|
|
$ |
142,520,635 |
|
|
|
|
|
|
|
|
|
|
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD |
|
$ |
139,884,828 |
|
|
$ |
156,770,375 |
|
| -CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
|
99,029,118 |
|
|
|
132,866,957 |
|
| -RESTRICTED CASH AT END OF PERIOD |
|
|
40,855,710 |
|
|
|
23,903,418 |
|
|
|
|
|
|
|
|
|
|
| SUPPLEMENTARY CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
| Income taxes paid |
|
$ |
274,037 |
|
|
|
688,160 |
|
| Interest paid |
|
$ |
225,479 |
|
|
|
17,536 |
|
|
|
|
|
|
|
|
|
|
| SUPPLEMENTAL NON-CASH DISCLOSURES: |
|
|
|
|
|
|
|
|
| Reversal of decrease in investment in the Former Affiliate Company due to change in its equity (net of tax effect of $491,400) |
|
|
- |
|
|
|
2,813,968 |
|
| Contribution from non-controlling shareholder by inventories, fix assets and intangible assets |
|
|
393,986 |
|
|
|
- |
|
| Common stock issued for settlement of payables related to acquisitions (see Note 19) |
|
|
- |
|
|
|
4,853,451 |
|
|
|
|
|
|
|
|
|
|
