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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2024 (Report No. 1)
Commission File Number: 333-259881
KANDI TECHNOLOGIES GROUP, INC.
(Translation of registrant’s name into English)
Jinhua New Energy Vehicle Town
Jinhua, Zhejiang Province
People’s Republic of China, 321016
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
☒ Form 20-F ☐ Form 40-F Kandi Technologies Group, Inc., a British Virgin Islands company (the “Company”) furnishes under the cover of Form 6-K the following:
| Exhibit No. | Description of Exhibit | |
| 99.1 | Earning Release dated August 16, 2024, announcing its financial results for the second quarter ended June 30, 2024. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: August 16, 2024 | Kandi Technologies Group, Inc. | |
| By: | /s/ Dong Xuequin | |
| Dong Zueqin | ||
| Chief Executive Officer | ||
2
Exhibit 99.1
Kandi Technologies Reports Second Quarter 2024 Financial Results
| - | Strong Financial Position with ~$220 million cash and cash equivalents |
| - | Returned Capital to Shareholders via Active Share Repurchase Program |
| - | Introduced Officially Licensed NFL Team Golf Carts Exclusively Available at Lowe’s |
JINHUA, CHINA, August 16, 2024 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the “Company”, “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the second quarter of 2024.
Second Quarter Highlights
Total revenues increased to $39.1 million, up from $36.0 million in the same period of 2023.
Off-road vehicles and associated parts were the primary driver of revenue, increasing by 11.3% y/y to $34.7 million, compared to $31.3 million in the same period of 2023.
Net income was $1.6 million, or $0.02 income per fully diluted share, compared to net income of $4.4 million, or $0.06 income per fully diluted share for the same period of 2023.
Solid financial standing with $220 million in cash and cash equivalents, restricted cash, short term investment, and certificate of deposit as of June 30, 2024.
During the second quarter, the Company repurchased 673,896 shares of its common stock at an average price of $2.25.
Continued to expand the Company’s fully electric off-road vehicle lineup in the U.S. with the launch of new products that have injected fresh energy into the market, including the officially licensed NFL-branded golf cart. These offerings provide off-road enthusiasts with advanced performance and sustainable options.
Released ultra-high capacity AA batteries in the U.S. market, offering long-lasting and quick charging solutions.
Expanded global presence by achieving EEC certification for the 10K all-electric UTV, paving the way for entry into the EU market. Simultaneously, as well as expanded the market for Kandi products in Asia, further increasing its international market share.
Dr. Xueqin Dong, CEO of Kandi commented, “Our second quarter results showcase the continued strength and growth of our company. We achieved a notable increase in total revenues, driven by strong sales in our off-road vehicle segment. This reflects the market’s positive reception to our innovative and sustainable product offerings.”
Dong continued, “We remain financially robust, with a solid cash position and share repurchases highlighting our confidence in the company’s future. Our focus on the U.S. market, our primary market, has proven particularly rewarding. The successful launch of our new off-road vehicle offerings and ultra-high capacity AA batteries demonstrates our commitment to meeting the needs of American consumers with advanced and sustainable solutions. Additionally, our new partnership with Lowe’s to introduce a limited-edition golf cart collection featuring logos and designs for all 32 NFL teams underscores our innovative approach to combining sports enthusiasm with sustainable technology. These golf carts, set to launch in the U.S. market at the end of August, offer fans an exciting and eco-friendly way to show their team pride. Our global expansion efforts, including entry into the EU market and expanded distribution in Asia, further support our long-term growth strategy.”
Share Repurchase
As of June 30, 2024, the Company had repurchased a total of 1,422,764 common shares at an average price of $2.50 per share under the repurchase plan, including a total of 673,896 common shares at an average price of $2.25 per share repurchased in the second quarter of 2024.
Q2 2024 Key Financial Results
Net Revenues and Gross Profit (in USD millions)
| Q2 2024 | Q2 2023 | Y-o-Y% | ||||||||||
| Net Revenues | $ | 39.1 | $ | 36.0 | 8.9 | % | ||||||
| Gross Profit | $ | 11.9 | $ | 13.7 | -13.8 | % | ||||||
| Gross Margin% | 30.3 | % | 38.2 | % | - | |||||||
| ● | Total revenues in the second quarter of 2024 were $39.1 million compared to $36.0 million in the same period of 2023, representing an increase of 8.9%, mainly due to an increase in sales of off-road vehicles and EV products compared to the prior period. |
| ● | Cost of goods sold in the second quarter of 2024 was $27.3 million compared to $22.2 million in the same period of 2023, representing an increase of 22.9%. The increase was primarily due to the corresponding increase in sales. |
| ● | Gross profit in the second quarter of 2024 was $11.9 million, compared to $13.7 million in the same period of 2023, representing a decrease of 13.8%. The overall gross margin for the second quarter was 30.3%, down from 38.2% in the same period of 2023, reflecting the impact of the product mix and the regional revenue shift. |
Operating Loss (in USD millions)
| Q2 2024 | Q2 2023 | Y-o-Y% | ||||||||||
| Operating Expenses | $ | (13.1 | ) | $ | (14.0 | ) | -6.1 | % | ||||
| Loss from Operations | $ | (1.3 | ) | $ | (0.2 | ) | 452.4 | % | ||||
| Operating Margin% | -3.2 | % | -0.6 | % | - | |||||||
| ● | Research and development expenses totaled $0.8 million for the second quarter of 2024, a decrease of 10.4% compared to $0.9 million for the same period in 2023. The decrease was mainly due to fewer research and development projects being carried out in the current period than in the same period in 2023. |
| ● | Selling and distribution expenses totaled $4.0 million for the second quarter of 2024, an increase of 43.4% compared to $2.8 million for the same period in 2023. The increase was mainly due to more freight expenses incurred from shipping of the Company’s products to cover more retails stores of its customers in the current period. |
| ● | General and administrative expenses totaled $8.3 million for the second quarter of 2024, a decrease of 5.7% compared to $8.8 million for the same period in 2023. |
Net Income (in USD millions)
| Q2 2024 | Q2 2023 | Y-o-Y% | ||||||||||
| Net Income | $ | 1.6 | $ | 4.4 | -63.1 | % | ||||||
| Net Income per Share, Basic and Diluted | $ | 0.02 | $ | 0.06 | - | |||||||
| Net Income attributable to Kandi | $ | 1.7 | $ | 3.7 | -55.1 | % | ||||||
| Net Income attributable to Kandi per Share, Basic and Diluted | $ | 0.02 | $ | 0.05 | - | |||||||
Net income was $1.6 million for the second quarter of 2024, a decrease of 63.1% compared to $4.4 million for the same period in 2023. The decrease was mainly due to the $2.2 million change in the fair value of contingent consideration recorded in the prior period compared to $0.7 million recorded in the current period, as well as a decrease in gross margin in the current period.
Balance Sheet (in USD millions)
| ● | Working capital was $264.1 million as of June 30, 2024. |
Second Quarter 2024 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 Friday, August 16, 2024. 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:
| ● | Toll-free dial-in number: +1-877-407-3982 |
| ● | International dial-in number: + 1-201-493-6780 |
| ● | Webcast and replay: https://viavid.webcasts.com/starthere.jsp?ei=1684400&tp_key=aa761f6044 |
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 New Energy Vehicle Town，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 Kandi Electric Vehicles (Hainan) 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.co KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
- Tables Below -
(UNAUDITED)
(All amounts in thousands)
| June 30, 2024 |
December 31, 2023 |
|||||||
| (Unaudited) | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 37,311 | $ | 33,757 | ||||
| Restricted cash | 100,957 | 59,873 | ||||||
| Short term investment | 124 | - | ||||||
| Certificate of deposit | 81,210 | 33,947 | ||||||
| Accounts receivable | 31,553 | 18,952 | ||||||
| Inventories | 72,634 | 61,551 | ||||||
| Notes receivable | 63 | 124,473 | ||||||
| Other receivables | 20,574 | 6,477 | ||||||
| Prepayments and prepaid expense | 3,959 | 1,909 | ||||||
| Advances to suppliers | 538 | 2,609 | ||||||
| TOTAL CURRENT ASSETS | 348,923 | 343,548 | ||||||
| NON-CURRENT ASSETS | ||||||||
| Property, plant and equipment, net | 92,467 | 98,804 | ||||||
| Intangible assets, net | 5,410 | 6,396 | ||||||
| Land use rights, net | 2,639 | 2,754 | ||||||
| Deferred tax assets | 849 | 815 | ||||||
| Goodwill | 32,436 | 33,147 | ||||||
| Other long-term assets | 10,713 | 9,993 | ||||||
| TOTAL NON-CURRENT ASSETS | 144,514 | 151,909 | ||||||
| TOTAL ASSETS | $ | 493,437 | $ | 495,457 | ||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 34,987 | $ | 28,745 | ||||
| Other payables and accrued expenses | 5,409 | 7,253 | ||||||
| Short-term loans | 13,225 | 9,072 | ||||||
| Notes payable | 23,503 | 24,071 | ||||||
| Income tax payable | 1,972 | 2,130 | ||||||
| Other current liabilities | 5,698 | 5,402 | ||||||
| TOTAL CURRENT LIABILITIES | 84,794 | 76,673 | ||||||
| NON-CURRENT LIABILITIES | ||||||||
| Long-term loans | 8,111 | 8,389 | ||||||
| Deferred taxes liability | 853 | 964 | ||||||
| Contingent consideration liability | 1,757 | 2,693 | ||||||
| Other long-term liabilities | 985 | 227 | ||||||
| TOTAL NON-CURRENT LIABILITIES | 11,706 | 12,273 | ||||||
| TOTAL LIABILITIES | 96,500 | 88,946 | ||||||
| STOCKHOLDER’S EQUITY | ||||||||
| Kandi technologies group, inc. stockholders’ equity | 394,491 | 404,126 | ||||||
| Non-controlling interests | 2,446 | 2,385 | ||||||
| TOTAL STOCKHOLDERS’ EQUITY | 396,937 | 406,511 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 493,437 | $ | 495,457 | ||||
KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
(All amounts in thousands, except for share and per share/ADS data)
| Three Months Ended | ||||||||
| June 30, 2024 |
June 30, 2023 |
|||||||
| REVENUES, NET | $ | 39,150 | $ | 35,953 | ||||
| COST OF GOODS SOLD | (27,307 | ) | (22,219 | ) | ||||
| GROSS PROFIT | 11,843 | 13,734 | ||||||
| OPERATING EXPENSE: | ||||||||
| Research and development | (783 | ) | (875 | ) | ||||
| Selling and marketing | (3,988 | ) | (2,781 | ) | ||||
| General and administrative | (8,338 | ) | (8,838 | ) | ||||
| Impairment of goodwill | - | (508 | ) | |||||
| Impairment of long-lived assets | - | (963 | ) | |||||
| TOTAL OPERATING EXPENSE | (13,109 | ) | (13,965 | ) | ||||
| LOSS FROM OPERATIONS | (1,266 | ) | (231 | ) | ||||
| OTHER INCOME (EXPENSE): | ||||||||
| Interest income | 1,555 | 1,955 | ||||||
| Interest expense | (512 | ) | (194 | ) | ||||
| Change in fair value of contingent consideration | 684 | 2,164 | ||||||
| Government grants | 834 | 190 | ||||||
| Other income, net | 634 | 807 | ||||||
| TOTAL OTHER INCOME , NET | 3,195 | 4,922 | ||||||
| INCOME BEFORE INCOME TAXES | 1,929 | 4,691 | ||||||
| INCOME TAX EXPENSE | (311 | ) | (305 | ) | ||||
| NET INCOME | 1,618 | 4,386 | ||||||
| LESS: NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | (55 | ) | 659 | |||||
| NET INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS | 1,673 | 3,727 | ||||||
| OTHER COMPREHENSIVE LOSS | ||||||||
| Foreign currency translation adjustment | (2,306 | ) | (19,279 | ) | ||||
| COMPREHENSIVE LOSS | $ | (688 | ) | $ | (14,893 | ) | ||
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 86,325,182 | 74,378,083 | ||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 86,522,152 | 76,315,953 | ||||||
| NET INCOME PER SHARE, BASIC | $ | 0.02 | $ | 0.06 | ||||
| NET INCOME PER SHARE, DILUTED | $ | 0.02 | $ | 0.06 | ||||
| NET INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE, BASIC | $ | 0.02 | $ | 0.05 | ||||
| NET INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE, DILUTED | $ | 0.02 | $ | 0.05 | ||||
| Six Months Ended | ||||||||
| June 30, 2024 |
June 30, 2023 |
|||||||
| REVENUES, NET | $ | 59,825 | $ | 58,815 | ||||
| COST OF GOODS SOLD | (40,858 | ) | (37,052 | ) | ||||
| GROSS PROFIT | 18,967 | 21,763 | ||||||
| OPERATING EXPENSE: | ||||||||
| Research and development | (1,685 | ) | (1,754 | ) | ||||
| Selling and marketing | (7,023 | ) | (4,608 | ) | ||||
| General and administrative | (14,612 | ) | (16,398 | ) | ||||
| Impairment of goodwill | - | (508 | ) | |||||
| Impairment of long-lived assets | - | (963 | ) | |||||
| TOTAL OPERATING EXPENSE | (23,320 | ) | (24,231 | ) | ||||
| LOSS FROM OPERATIONS | (4,353 | ) | (2,468 | ) | ||||
| OTHER INCOME (EXPENSE): | ||||||||
| Interest income | 3,633 | 4,055 | ||||||
| Interest expense | (965 | ) | (368 | ) | ||||
| Change in fair value of contingent consideration | 936 | 1,803 | ||||||
| Government grants | 1,051 | 810 | ||||||
| Other income, net | 2,525 | 1,074 | ||||||
| TOTAL OTHER INCOME, NET | 7,180 | 7,374 | ||||||
| INCOME BEFORE INCOME TAXES | 2,827 | 4,906 | ||||||
| INCOME TAX (EXPENSE) BENEFIT | (449 | ) | 74 | |||||
| NET INCOME | 2,378 | 4,980 | ||||||
| LESS: NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 63 | 1,284 | ||||||
| NET INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS | 2,315 | 3,696 | ||||||
| OTHER COMPREHENSIVE LOSS | ||||||||
| Foreign currency translation adjustment | (9,823 | ) | (17,696 | ) | ||||
| COMPREHENSIVE LOSS | $ | (7,445 | ) | $ | (12,716 | ) | ||
| WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 86,663,100 | 74,282,823 | ||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 87,097,274 | 75,786,201 | ||||||
| NET INCOME PER SHARE, BASIC | $ | 0.03 | $ | 0.07 | ||||
| NET INCOME PER SHARE, DILUTED | $ | 0.03 | $ | 0.07 | ||||
| NET INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE, BASIC | $ | 0.03 | $ | 0.05 | ||||
| NET INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE, DILUTED | $ | 0.03 | $ | 0.05 | ||||
7