Solid Start to the Year with Net Income of $0.8 million, up 27.6% YoY Significant Return of Capital to Shareholders via 564,302 Shares Repurchased JINHUA, CHINA, May 16, 2024 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the "Company", "we" or "Kandi") (NASDAQ GS: KNDI), today announced its financial results for the first quarter of 2024. First Quarter Highlights Continued expansion of sales channels, with the Company's products available in a greater number of large chains and distributors across the ...

Solid Start to the Year with Net Income of $0.8 million, up 27.6% YoY Significant Return of Capital to Shareholders via 564,302 Shares Repurchased JINHUA, CHINA, May 16, 2024 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the “Company”, “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the first quarter of 2024. First Quarter Highlights Continued expansion of sales channels, with the Company’s products available in a greater number of large chains and distributors across the ...

Jinhua, China, May 13, 2024 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (the "Company" or "Kandi") announced today that it will report its first quarter 2024 financial results on Thursday, May 16, 2024. 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 Thursday, May 16, 2024. Management will deliver prepared remarks to be followed by a question and answer session. The dial-in details fo ...

Jinhua, China, April 16, 2024 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) ("Kandi" or the "Company"), a leading distributor of all-electric personal transportation and utility vehicles, today announced that the reincorporation merger to redomicile the Company as a British Virgin Islands company (the "Merger") has been completed on April 16, 2024. Pursuant to the Merger, each outstanding share of the common stock of the Company is converted into the right to receive one ordinary shar ...

Financial Data and Key Metrics Changes - In 2023, Kandi Technologies achieved a revenue increase, reaching its highest level in the past three years, with gross profit rising by 112% to $40.4 million and a net profit of $1.7 million, a significant recovery from a net loss of $12.9 million in 2022 [4][5]. Business Line Data and Key Metrics Changes - The company successfully pivoted to off-road electric vehicles, launching new products such as electric UTVs and mini golf karts, and expanded sales channels through the acquisition of Northern Group and partnerships with Lowe's [4][5]. Market Data and Key Metrics Changes - Kandi Technologies is expanding its retail presence, having added over a dozen retail chains and aiming to increase dealership partnerships from 300 to over 1,000 in 2024 [13][104]. Company Strategy and Development Direction - The company is focusing on research and development to introduce more competitive electric off-road vehicle products, reflecting confidence in future growth and a commitment to enhancing shareholder value [5]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the electric off-road vehicle market and indicated that the strategic shifts made in recent years are expected to yield significant growth in 2024 [5][25]. Other Important Information - The company is considering potential acquisitions and the establishment of manufacturing facilities in North America, particularly in response to potential political changes affecting tariffs on goods from China [90][92]. Q&A Session Summary Question: How big can the Lowe's relationship evolve? - Management indicated that the cooperation with Lowe's is expected to expand beyond golf carts to include other products [9]. Question: What are the payment terms with Lowe's and Walmart? - Payment terms are confidential, but they follow agreed-upon terms between the parties [11]. Question: How many more superstore chains will Kandi add in the next 12 months? - Kandi is working with over a dozen retail chains and aims to expand dealership partnerships significantly [13]. Question: What is the status of the Kandi Cowboy side-by-side sales in Texas? - Sales plans are based on agreements with partners, and the products are selling according to the sales plan [15]. Question: What new products will be introduced this year and next year? - Kandi plans to launch a competitive electric off-road vehicle series and lithium batteries for various uses [17]. Question: Is the company still considering a Dutch auction for share buybacks? - Currently, a Dutch auction is not being adopted, but the company is undergoing a share buyback process [53]. Question: What are the plans for reintroducing electric cars? - Due to a competitive market in China, the focus has shifted to electric off-road vehicles, but the company is assessing the EV market for future opportunities [55]. Question: How is Kandi managing its inventory levels? - The increase in inventory is aligned with sales plans to meet the demands of partners like Lowe's [84]. Question: What is the company's strategy for international distributorships? - Kandi is utilizing foreign trading companies to ship products to regions like the UK and EU, with plans for expansion [86]. Question: How will revenues be booked if Kandi spins off its U.S. subsidiary? - Intercompany transactions will be managed to avoid double counting, and Kandi will likely remain the controlling shareholder of the subsidiary [110].

PART I [Item 1. Business](index=7&type=section&id=Item%201.%20Business) The company, a Delaware holding company operating in the PRC and U.S., has shifted its focus to pure electric off-road vehicles, targeting a leading market position - Kandi Technologies is a Delaware holding company, with most operations conducted through its PRC and U.S. subsidiaries[14](index=14&type=chunk) - The company shifted its strategy to focus on pure electric off-road vehicles due to the unhealthy development stage of China's EV market, aiming for a leading position within three years[15](index=15&type=chunk)[22](index=22&type=chunk) - The largest market for pure electric off-road vehicles is the United States, where Kandi is expanding its sales through its subsidiary SC Autosports and the recent acquisition of Northern Group, Inc. (NGI)[22](index=22&type=chunk)[26](index=26&type=chunk) - The company is reincorporating from a Delaware company to a British Virgin Islands company (Kandi BVI) in the second quarter of 2024, a move approved by shareholders on December 27, 2023[21](index=21&type=chunk) Net Revenues by Geographical Market (2023 vs. 2022) | Primary geographical markets | 2023 Sales Revenue | 2022 Sales Revenue | | :--------------------------- | :----------------- | :----------------- | | U.S. and other countries/areas | $93,979,363 | $65,871,112 | | China | $29,619,869 | $51,941,937 | | Total | $123,599,232 | $117,813,049 | Net Revenues by Major Products and Services (2023 vs. 2022) | Major products and Services | 2023 Sales Revenue | 2022 Sales Revenue | | :----------------------------------------------- | :----------------- | :----------------- | | EV parts | $5,807,973 | $8,964,094 | | EV products | $1,214,786 | $7,926,233 | | Off-road vehicles and associated parts | $106,983,891 | $70,622,278 | | Electric Scooters, Electric Self-Balancing Scooters and associated parts | $683,952 | $4,616,683 | | Battery exchange equipment and Battery exchange service | $674,927 | $1,691,486 | | Lithium-ion cells | $7,994,227 | $23,992,275 | | Commission income | $239,476 | $- | | Total | $123,599,232 | $117,813,049 | [Item 1A. Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks related to market adoption, competition, product liability, intellectual property, extensive China-specific uncertainties, and changes from its BVI reincorporation - Future growth is highly dependent on consumer adoption of EVs and pure electric off-road vehicles, a market characterized by rapid technological changes and evolving regulations[70](index=70&type=chunk) - Operations in China are subject to substantial uncertainties and restrictions from the PRC government's political and economic policies, including potential intervention and changes in laws and regulations[104](index=104&type=chunk) - The company's reincorporation to a British Virgin Islands entity will alter shareholder rights and corporate governance, potentially offering fewer protections compared to a U.S. incorporated company[181](index=181&type=chunk)[188](index=188&type=chunk) [Item 1B. Unresolved Staff Comments.](index=45&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments.) There are no unresolved staff comments to report - The company has no unresolved staff comments[199](index=199&type=chunk) [Item 1C. Cybersecurity.](index=45&type=section&id=Item%201C.%20Cybersecurity.) The company's cybersecurity risk management program is overseen by senior management and the Audit Committee, focusing on third-party risks, assessments, and incident response - Cybersecurity risk management is overseen by the Director of Internal Control and CFO, with the Audit Committee providing board-level oversight[199](index=199&type=chunk) - The cybersecurity strategy includes managing third-party risks, conducting periodic assessments and testing, implementing controls for incident identification and escalation, deploying technical safeguards, and establishing incident response plans[200](index=200&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) [Item 2. Properties.](index=45&type=section&id=Item%202.%20Properties.) The company holds land use rights and owns fully operational facilities in China and the U.S. to support its manufacturing and assembly operations - Kandi holds granted land use rights in China, similar to life estates, for industrial and other uses, with terms up to 50 years[201](index=201&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk) - The company owns and operates facilities in Jinhua, Yongkang, Haikou, and Xinyu in China, and in Dallas and Garland, Texas, in the U.S., all reported as fully operational[207](index=207&type=chunk)[210](index=210&type=chunk)[212](index=212&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[218](index=218&type=chunk) Granted Land Use Rights (as of December 31, 2023) | Area | Size (sqm) | Validity Period | Certificate Number | | :------------------------------- | :--------- | :-------------------------- | :----------------- | | Jinhua New Energy Vehicle Town | 58,587 | Oct 22, 2020 - Oct 22, 2070 | 33201931343 | | Zhejiang Qiaoxia Industrial Park | 5,864 | Apr 03, 2001 - Apr 03, 2051 | 574-26-36 | | Zhejiang Qiaoxia Industrial Park | 3,851 | Jan 21, 2018 - Jan 20, 2068 | 3310-1414461 | | Xinyu South of Tantang Road | 72,720 | Jun 15, 2022 - Dec 2, 2071 | 36006007453 | Key Facilities and Status (as of December 31, 2023) | Location | Description | Area (sqm/sqft) | Status | | :---------------- | :--------------- | :-------------- | :---------------- | | Jinhua, Zhejiang | Factories | 84,717 | Fully operational | | | Office | 6,195 | Fully operational | | | Staff quarters | 5,643 | Fully operational | | Yongkang, Zhejiang| Factories | 11,054 | Fully operational | | Haikou, Hainan | Factories | 145,000 | Fully operational | | Xinyu, Jiangxi | Factories | 15,795 | Fully operational | | Dallas, Texas | Assembly area | 43,524 | Fully operational | | Garland, Texas | Warehouse area | 74,758 | Fully operational | [Item 3. Legal Proceedings.](index=48&type=section&id=Item%203.%20Legal%20Proceedings.) The company is involved in ongoing shareholder litigation with uncertain outcomes and recently settled an SEC administrative order for $710,000 - The company is involved in ongoing shareholder class actions and derivative actions related to past financial restatements and allegations of misconduct[220](index=220&type=chunk)[104](index=104&type=chunk) - The company believes these claims are without merit and defends itself vigorously, but the ultimate outcome is uncertain and could have a negative financial impact[220](index=220&type=chunk)[489](index=489&type=chunk) - Kandi settled an SEC administrative order for **$710,000** in September 2023, related to alleged violations concerning statements about selling highway passenger EVs in the U.S[490](index=490&type=chunk) [Item 4. Mine Safety Disclosures.](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to Kandi Technologies Group, Inc - Mine Safety Disclosures are not applicable to the company[222](index=222&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchase Equity Securities.](index=49&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchase%20Equity%20Securities.) Kandi's common stock trades on NASDAQ under 'KNDI', with the company retaining earnings for expansion and recently initiating a share repurchase program - Kandi's common stock has been trading on the NASDAQ Global Select Market under the symbol 'KNDI' since January 2, 2014[223](index=223&type=chunk) - As of March 8, 2024, there were **45 shareholders of record**[223](index=223&type=chunk) - The company has never paid cash dividends and does not anticipate paying them in the foreseeable future, intending to retain all earnings for business operations and expansion[224](index=224&type=chunk) Shares Repurchased (December 2023) | Period | Total number of shares purchased | Average price per share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number (or approximate dollar value) of shares yet to be purchased under the plans or programs | | :-------------------------- | :------------------------------- | :---------------------- | :------------------------------------------------------------------------------- | :--------------------------------------------------------------------------------------------------- | | December 1 to December 31, 2023 | 184,566 | $2.75 | 184,566 | $29,492,444 | | Total | 184,566 | $2.75 | 184,566 | $29,492,444 | Securities Authorized for Issuance under Equity Compensation Plans (as of December 31, 2023) | Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | | :------------------------------------------ | :-------------------------------------------------------------------------------------------- | :------------------------------------------------------------------------------ | :------------------------------------------------------------------------------------------------------------------------------------------------ | | Equity compensation plans approved by security holders | 4,301,358 | $3.7 | 1,152,082 | | Totals | 4,301,358 | $3.7 | 1,152,082 | [Item 6. [Reserved]](index=50&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no content [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=50&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) The company's strategic shift to off-road vehicles drove a 4.9% revenue increase to $123.6 million and a return to profitability with $1.7 million in net income for 2023 - Kandi Technologies is a Delaware holding company, with operations primarily through PRC and U.S. subsidiaries, focusing on pure electric off-road vehicles[230](index=230&type=chunk)[231](index=231&type=chunk) - The increase in net income was primarily due to higher gross profit from a greater concentration of sales from off-road vehicles with larger gross margins[263](index=263&type=chunk) - Working capital increased by **$19.1 million** to **$266.9 million** as of December 31, 2023[268](index=268&type=chunk) Key Financial Highlights (2023 vs. 2022) | Metric | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | Change ($) | Change (%) | | :--------------- | :---------------------- | :---------------------- | :----------- | :--------- | | Revenues, Net | $123,599,232 | $117,813,049 | $5,786,183 | 4.9% | | Gross Profit | $41,370,023 | $19,517,726 | $21,852,297 | 112.0% | | Net Income (Loss)| $1,669,767 | $(12,851,024) | $14,520,791 | (113.0)% | Cash Flow Summary (2023 vs. 2022) | Cash Flow Activity | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :----------------------------- | :---------------------- | :---------------------- | | Net cash (used in) provided by operating activities | $(101,160,636) | $31,478,911 | | Net cash provided by (used in) investing activities | $32,278,828 | $(35,031,115) | | Net cash provided by (used in) financing activities | $14,828,688 | $(4,333,088) | | Net decrease in cash and cash equivalents and restricted cash | $(54,053,120) | $(7,885,292) | | Cash and cash equivalents and restricted cash at end of period | $93,630,068 | $151,040,271 | [Item 7A. Quantitative and Qualitative Disclosures about Market Risk.](index=60&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk.) This item is not applicable to Kandi Technologies Group, Inc - Quantitative and Qualitative Disclosures about Market Risk are not applicable to the company[292](index=292&type=chunk) [Item 8. Financial Statements and Supplementary Data.](index=61&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data.) This section presents the audited consolidated financial statements for 2023 and 2022, prepared under U.S. GAAP and affirmed by independent auditors - The consolidated financial statements for 2023 and 2022 are presented in conformity with U.S. GAAP[296](index=296&type=chunk)[317](index=317&type=chunk)[361](index=361&type=chunk) - Independent auditors ARK Pro CPA & Co (for 2023) and Kreit & Chiu CPA LLP (for 2022) issued unqualified opinions on the financial statements and the effectiveness of internal control over financial reporting[296](index=296&type=chunk)[297](index=297&type=chunk)[316](index=316&type=chunk)[317](index=317&type=chunk) Consolidated Balance Sheets (as of December 31, 2023 and 2022) | Item | December 31, 2023 ($) | December 31, 2022 ($) | | :------------------------------------ | :-------------------- | :-------------------- | | TOTAL CURRENT ASSETS | 343,548,138 | 329,322,973 | | TOTAL NON-CURRENT ASSETS | 151,908,461 | 153,659,303 | | TOTAL ASSETS | 495,456,599 | 482,982,276 | | TOTAL CURRENT LIABILITIES | 76,673,629 | 81,505,848 | | TOTAL NON-CURRENT LIABILITIES | 12,272,878 | 3,783,457 | | TOTAL LIABILITIES | 88,946,507 | 85,289,305 | | TOTAL STOCKHOLDERS' EQUITY | 406,510,092 | 397,692,971 | Consolidated Statements of Operations and Comprehensive Income (Loss) (2023 vs. 2022) | Item | 2023 ($) | 2022 ($) | | :------------------------------------ | :------------ | :------------ | | REVENUES, NET | 123,599,232 | 117,813,049 | | GROSS PROFIT | 41,370,023 | 19,517,726 | | LOSS FROM OPERATIONS | (13,052,171) | (27,679,432) | | TOTAL OTHER INCOME, NET | 16,524,842 | 14,340,898 | | INCOME (LOSS) BEFORE INCOME TAXES | 3,472,671 | (13,338,534) | | NET INCOME (LOSS) | 1,669,767 | (12,851,024) | | COMPREHENSIVE LOSS | (6,967,060) | (41,436,049) | Consolidated Statements of Cash Flows (2023 vs. 2022) | Cash Flow Activity | 2023 ($) | 2022 ($) | | :------------------------------------------------ | :-------------- | :-------------- | | Net cash (used in) provided by operating activities | (101,160,636) | 31,478,911 | | Net cash provided by (used in) investing activities | 32,278,828 | (35,031,115) | | Net cash provided by (used in) financing activities | 14,828,688 | (4,333,088) | | NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (54,053,120) | (7,885,292) | | CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 93,630,068 | 151,040,271 | [Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure.](index=108&type=section&id=Item%209.%20Changes%20In%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure.) There are no changes in or disagreements with accountants on accounting and financial disclosure to report - There are no changes in or disagreements with accountants on accounting and financial disclosure[507](index=507&type=chunk) [Item 9A. Controls and Procedures.](index=108&type=section&id=Item%209A.%20Controls%20and%20Procedures.) Management concluded that the company's disclosure controls, procedures, and internal control over financial reporting were effective as of December 31, 2023 - The company's disclosure controls and procedures were evaluated and deemed **effective** as of December 31, 2023[508](index=508&type=chunk) - Management assessed the effectiveness of internal control over financial reporting (ICFR) based on the 2013 COSO Framework and concluded it was **effective** as of December 31, 2023[509](index=509&type=chunk)[513](index=513&type=chunk) - No material changes to internal control over financial reporting occurred during the period covered by the report[515](index=515&type=chunk) [Item 9B. Other Information.](index=109&type=section&id=Item%209B.%20Other%20Information.) No other significant information is reported, and no directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the fourth quarter - No other information, apart from subsequent events in Note 26, is known to significantly affect the company's results or financial statements[516](index=516&type=chunk) - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q4 2023[517](index=517&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.](index=109&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections.) There are no disclosures regarding foreign jurisdictions that prevent inspections - There are no disclosures regarding foreign jurisdictions that prevent inspections[518](index=518&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=110&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The company's leadership includes experienced executives and independent directors, with a focus on board diversity, financial expertise, and ethical conduct - The Board of Directors and Nominating and Corporate Governance Committee consider diverse viewpoints for board candidates, complying with Nasdaq Rule 5605(f) and 5606[532](index=532&type=chunk) - Henry Yu and Jerry Lewin qualify as 'audit committee financial experts' under SEC regulations and NASDAQ listing standards[534](index=534&type=chunk) - A 'Code of Ethics' applies to all directors and employees, including principal executive, financial, and accounting officers[535](index=535&type=chunk) - All Section 16(a) filing requirements were met in fiscal year 2023, with some late filings noted for Hu Xiaoming, Wang Lin, Dong Xueqin, Henry Yu, and Jerry Lewin[536](index=536&type=chunk) Directors and Executive Officers (as of March 10, 2024) | Name | Age | Position | Served From | | :------------ | :-- | :------------------------------------- | :-------------- | | Hu Xiaoming | 67 | Chairman of the Board | June 2007 | | Lim Jehn Ming | 41 | Chief Financial Officer | May 2020 | | Chen Liming | 87 | Director (Independent) | May 2012 | | Lin Yi | 71 | Director (Independent) | May 2017 | | Jerry Lewin | 69 | Director (Independent) | November 2010 | | Henry Yu | 70 | Director (Independent) | July 2011 | | Dong Xueqin | 42 | Chief Executive Officer, President, Director | December 2021 | | Wang Lin | 35 | Director | December 2019 | [Item 11. Executive Compensation](index=114&type=section&id=Item%2011.%20Executive%20Compensation) Executive and director compensation for 2023 comprised base salaries, cash fees, and performance-based equity awards, governed by employment agreements - Executive compensation programs for fiscal 2023 primarily included base salary and equity compensation, with a significant portion being performance-based[541](index=541&type=chunk)[542](index=542&type=chunk) - Employment agreements for Mr. Hu, Mr. Lim, and Dr. Dong specify annual salaries and equity awards[549](index=549&type=chunk)[550](index=550&type=chunk) - In case of termination without cause, the company is obligated to pay one month's salary for each year of employment[552](index=552&type=chunk) Summary Compensation Table (2023 vs. 2022) | Name and Principal Position | Year | Salary ($) | Stock Awards ($) | Total ($) | | :-------------------------- | :--- | :--------- | :--------------- | :-------- | | Hu Xiaoming, Chairman of the Board | 2023 | 51,522 | 156,500 | 208,022 | | | 2022 | 53,505 | 122,500 | 176,005 | | Dong Xueqin, CEO and President | 2023 | 70,694 | 59,600 | 130,294 | | Lim Jehn Ming, CFO | 2023 | 120,000 | 26,870 | 146,870 | | | 2022 | 120,000 | 18,540 | 138,540 | Director Compensation (excluding Named Executive Officers) (2023) | Name | Fees Earned or Paid Cash ($) | Stock Awards ($) | Total ($) | | :---------- | :--------------------------- | :--------------- | :-------- | | Lin Yi | 8,483 | - | 8,483 | | Henry Yu | 24,000 | 18,100 | 42,100 | | Jerry Lewin | 24,000 | 26,500 | 50,500 | | Chen Liming | 8,483 | - | 8,483 | | Wang Lin | 32,519 | 6,260 | 38,779 | | Dong Xueqin | 57,969 | 59,600 | 117,569 | [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=118&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Chairman Hu Xiaoming is the largest beneficial owner with 16.51% of common stock, while all officers and directors as a group hold 16.86% - As of March 8, 2024, **87,358,234 shares** of common stock were outstanding[557](index=557&type=chunk) - Hu Xiaoming, as the sole stockholder of Excelvantage Group Limited, is deemed the beneficial owner of its 12,821,404 shares[558](index=558&type=chunk) Beneficial Ownership (as of March 8, 2024) | Name of Beneficial Owner | Amount and Nature of Beneficial Ownership | Percent of Class | | :----------------------- | :---------------------------------------- | :--------------- | | Hu Xiaoming | 14,426,481 | 16.51% | | Jehn Ming Lim | 1,500 | * | | Henry Yu | 148,510 | * | | Jerry Lewin | 125,000 | * | | Chen Liming | - | - | | Lin Yi | - | - | | Dong Xueqin | 20,000 | - | | Wang Lin | 11,000 | * | | All officers and directors | 14,732,491 | 16.86% | | Excelvantage Group Limited | 12,821,404 | 14.68% | [Item 13. Certain Relationships and Related Transactions and Director Independence.](index=119&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence.) The company maintains policies for related-party transactions and confirms the independence of four non-employee directors and all committee members - Mr. Hu Xiaoming transferred his 50% equity interest in Kandi New Energy to Zhejiang Kandi Technologies for **$2.83 million** in March 2022, terminating all pre-existing related party agreements[560](index=560&type=chunk) - The company's policy for Related-Party Transactions requires Board consideration and independent director approval for material transactions exceeding **$120,000**, following an Audit Committee review[561](index=561&type=chunk)[562](index=562&type=chunk) - Henry Yu, Chen Liming, Lin Yi, and Jerry Lewin are independent non-employee directors, and all members of the Audit, Nominating/Corporate Governance, and Compensation Committees are independent under NASDAQ rules[563](index=563&type=chunk) [Item 14. Principal Accounting Fees and Services.](index=120&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services.) Aggregate fees paid to principal accounting firms totaled $449,071 in 2023 and $415,600 in 2022, primarily for audit services pre-approved by the Audit Committee - Audit Fees cover the audit of annual financial statements and related services[566](index=566&type=chunk) - All services provided by the independent registered public accountants were pre-approved by the Audit Committee[568](index=568&type=chunk) Aggregate Principal Accounting Fees (2023 vs. 2022) | Category | 2023 ($) | 2022 ($) | | :----------------- | :------- | :------- | | Audit Fees | 360,000 | 410,000 | | Audit Related Fees | - | - | | Tax Fees | - | - | | All other fees | 89,071 | 5,600 | | TOTAL FEES | 449,071 | 415,600 | PART IV [Item 15. Exhibits, Financial Statement Schedules.](index=121&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules.) This section lists all exhibits and financial statement schedules filed as part of the Annual Report, including corporate documents, agreements, and certifications - The section provides a comprehensive list of exhibits, including corporate documents (Certificate of Incorporation, Bylaws), various agreements (Share Exchange, Employment, Equity Transfer, Securities Purchase), and certifications (CEO, CFO)[571](index=571&type=chunk)[572](index=572&type=chunk)[573](index=573&type=chunk) - Many exhibits are incorporated by reference from prior SEC filings[571](index=571&type=chunk)[572](index=572&type=chunk)[573](index=573&type=chunk) - It also includes XBRL interactive data files for financial reporting[573](index=573&type=chunk) [SIGNATURES](index=125&type=section&id=SIGNATURES) The Annual Report is duly signed by principal officers and directors, affirming compliance with the Securities Exchange Act of 1934 - The report is signed by Dong Xueqin (President and CEO), Jehn Ming Lim (CFO), Hu Xiaoming (Chairman), and other directors, affirming compliance with the Securities Exchange Act of 1934[575](index=575&type=chunk)[576](index=576&type=chunk)

Exhibit 99.1 Kandi Technologies Reports 2023 Financial Results - $123.6 million net revenue hits a three-year high, marking a return to profitability JINHUA, China, March 14, 2024 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the "Company", "we" or "Kandi") (NASDAQ GS: KNDI), today announced its financial results for the full year ended December 31, 2023. Full Year 2023 Highlights ● Total net revenues increased by 4.9% to $123.6 million, from $117.8 million in 2022. ● As the primary driver of total re ...

Group 1 - Kandi America will participate in the 2024 PGA Show from January 23-26 in Orlando, Florida, showcasing its latest innovations in electric vehicles [1][2] - The PGA Show serves as a platform for networking, product testing, and innovation within the golf industry, aligning with Kandi's focus on off-road electric vehicles [1][2] - Kandi will reveal its latest electric golf carts, including patent-pending mini golf carts that are collapsible and feature a unique design [2] Group 2 - Kandi America is a subsidiary of Kandi Technologies Group, Inc., focused on distributing electric recreational vehicles and equipment [4] - The company aims to connect with industry professionals and explore potential collaborations during the PGA Show [2][3] - Kandi America acquired SC Autosports in 2018 to serve as its exclusive U.S. distributor [4]

Financial Data and Key Metrics Changes - The company achieved a cumulative net income of approximately $6.3 million during the first three quarters of 2023, with diluted earnings per share of $0.08, marking a significant improvement from a net loss of approximately $2.4 million or diluted loss per share of $0.03 for the same period in 2022 [6][10]. Business Line Data and Key Metrics Changes - The acquisition of the Northern Group by SC Autosports has enhanced the sales pipeline, leveraging extensive sales expertise and distribution channels [8]. - The company displayed new fully electric vehicles at a trade show, receiving positive feedback and enhancing its presence across various distribution channels [9]. Market Data and Key Metrics Changes - The company is focusing on expanding its presence in the North American market, with expectations of substantial growth in production and sales in 2024 compared to the current year [10]. Company Strategy and Development Direction - The primary focus remains on expanding in the North American market, with a commitment to innovation and quality to meet the increasing demand for fully electric off-road vehicles [10]. - The company is also committed to entering global markets, with expectations of significant growth in production and sales [10]. Management's Comments on Operating Environment and Future Outlook - Management highlighted the successful transformation from loss to profit in the first half of 2023 and continued profitability in the third quarter, attributing this to strategic adjustments made in recent years [6]. - Management expressed confidence in achieving a gross margin of around 38% and a sales target close to $500 million within the next two years [30][32]. Other Important Information - The company purchased a 75,000 square foot shipping center in Texas to boost marketing capabilities in the United States [9]. - Management is considering the possibility of share buybacks in the future [44]. Q&A Session Summary Question: Concerns about U.S. investors avoiding China stocks and electric automakers - Management acknowledged the operational cash management view and confirmed the strategic shift away from EV autos back to the off-road business, emphasizing the company's manufacturing capabilities and market demand in the U.S. [12][14]. Question: Expansion plans and market projections - Management confirmed that distributors in certain countries are selling products, with expectations of new sales in the U.S. and Europe within the next 12 months [14][24]. Question: Production capacity and surprises - Management stated that production capacity can meet market demand and hinted at potential surprises in the coming months [15]. Question: Pricing strategy in the U.S. vs. Europe - Management explained that lower prices in the U.S. are due to a focus on market occupancy and fewer distribution layers, while prices in Europe are higher due to distributor involvement [22]. Question: Public announcements regarding international locations - Management indicated that they are in the early stages of promoting products globally and will keep shareholders updated on developments [24]. Question: Handling of international expansion and growth projections - Management confirmed that they are discussing with various distributors and supermarkets to expand their network [26]. Question: Capacity increase from new distribution facility - Management confirmed that the new facility aims to increase sales capacity significantly, with a sales target of close to $500 million within the next two years [30]. Question: Gross margin expectations - Management estimated that the gross profit margin for the whole year 2023 will be above 30% and expressed confidence in achieving or exceeding a 25% CAGR in the foreseeable future [32]. Question: Public relations strategy and visibility - Management acknowledged the need for adjustments in publicity methods and confirmed that they are not hiding relationships with major retailers [42][39].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______to______ Commission File Number 001-33997 KANDI TECHNOLOGIES GROUP, INC. (Exact name of registrant as specified in charter) Delaware (Stateorotherjurisdictiono ...