Financial Data and Key Metrics Changes - Kandi Technologies reported solid results despite challenges from COVID-19 and geopolitical tensions, indicating resilience in its financial performance [6] - The company experienced significant supply chain disruptions, particularly in Shanghai, but managed to adapt its business strategy effectively [6][7] - The off-road vehicle revenue increased by 84% year-over-year, showcasing a strong growth trajectory in this segment [7] Business Line Data and Key Metrics Changes - The introduction of all-electric golf crossovers led to a monthly production increase to 2,000 units from double digits in March, reflecting strong customer demand [7] - The company plans to expand its product offerings in the all-electric off-road vehicle sector, including UTVs and ATVs, to capture market growth [8] Market Data and Key Metrics Changes - The off-road vehicle market is projected to grow by 19% annually, reaching a market size of $2.2 billion by 2028, presenting a substantial opportunity for Kandi [8] - The battery exchange service is facing challenges due to the competitive landscape in the Chinese EV market, which is currently experiencing unhealthy growth [9] Company Strategy and Development Direction - Kandi aims to become a market leader in the all-electric off-road vehicle sector by strategically adjusting its business model and enhancing its marketing and distribution capabilities [8] - The company is focused on diversifying its business strategy to remain competitive in the evolving EV market [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the severe and uncertain economic conditions due to COVID-19 and the Ukraine-Russia conflict, which have influenced their strategic decisions [26] - The management believes that the share price is undervalued and expects gradual improvements in financial performance to reflect this in the stock price [26][28] Other Important Information - Kandi's cooperation with Hengrun for EV production is aimed at compliance with production and sales regulations in the Chinese market, which is expected to enhance sales [13] - The company is exploring options for share buybacks but remains cautious due to the current economic environment [28] Q&A Session Summary Question: What is the significance of the relaunch of Kandi K23 in China? - Management explained that the relaunch under the Henghe brand is part of a cooperation with Hengrun, focusing on production compliance and expected to increase EV sales [12][13] Question: What is Kandi's relationship with the small EV sold in the U.S.? - The company clarified that the U.S. version is limited in speed due to unmet airbag safety requirements, which are more stringent than in China [14][15] Question: How is the battery swap project with Hengrun progressing? - Management confirmed that the project is progressing well, with necessary approvals completed for the Henghe H23 model [18][19] Question: Why hasn't Kandi been more aggressive with share buybacks? - Management cited the uncertain economic environment as a reason for a conservative approach, despite recognizing the stock's undervaluation [25][26] Question: What are the expectations for the golf cart business? - Management expressed confidence in the growth of the golf cart business, with consistent production expected to exceed 2,000 units per month [32][34] Question: How do tariffs affect Kandi's products? - Management indicated that there are no significant tariffs impacting exports, but U.S. tariffs do affect pricing [40][41] Question: What modifications are needed for Kandi's vehicles to be highway legal in the U.S.? - The primary obstacle is meeting U.S. airbag safety requirements, which are more stringent than those in China [45][46] Question: Why hasn't Kandi prioritized meeting U.S. safety standards? - Management explained that meeting these standards requires a comprehensive industry effort, and they are currently focusing on NEV sales in the U.S. [48][49]

Financial Data and Key Metrics Changes - Kandi Technologies reported nearly $25 million in revenue for Q1 2022, representing a year-over-year increase of 56% [5][6][18] - The company has a strong cash position, trading at a significant discount to its book value and cash reserves [38][36] Business Line Data and Key Metrics Changes - The establishment of Hainan Kandi Holding New Energy Technology Company Limited aims to produce crossover electric golf cars, with 778 units delivered by the end of April and an expectation to ship another 2,000 in May [6][7] - Kandi's focus on all-electric off-road vehicles and battery swapping technology is expected to drive future growth [7][29] Market Data and Key Metrics Changes - The company is optimistic about the prospects in the all-electric off-road vehicle market, particularly as the China EV market stabilizes [7][29] - The partnership with Hunan Hengrun Automobile Limited for battery swap enabled electric vehicles is progressing, with the application for necessary licenses already in the public announcement stage [8][9] Company Strategy and Development Direction - Kandi is focused on innovative R&D to improve technology and create new opportunities in the electric vehicle sector [7][29] - The company aims to strengthen its fundamental business operations and is cautious about market entry until conditions are more favorable [35][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current challenges in the Chinese market but believes that the share price is undervalued and will rise as business performance improves [40][41] - The company is committed to developing its battery swap technology and believes it is a key direction for future growth [29][31] Other Important Information - Kandi repurchased 603,000 shares from April 1 to May 5, indicating ongoing commitment to shareholder value [22] - The company is adjusting its K23 and K27 models to Neighborhood Electric Vehicles (NEVs) due to regulatory challenges in the U.S. [43][44] Q&A Session Summary Question: Has the deal with Hunan Hengrun been activated? - Yes, the agreement is in place and the application is in the public announcement stage [9] Question: Will Kandi's brand be used in the joint venture? - The vehicles will carry the Henghe brand, but Kandi will play a major role in manufacturing [11] Question: What does Hengrun contribute to the battery exchange program? - Kandi produces major components, while Hengrun assembles and sells the vehicles in the Chinese market [13] Question: What is the status of the K23 and K27 models in the U.S.? - The models have not yet met U.S. safety requirements, and a timeline for compliance is uncertain [43][44] Question: What is the status of the strategic cooperation agreement with the State Grid? - The agreement is still in place, but large-scale implementation has not yet occurred due to market conditions [48]

[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section provides the unaudited financial statements and management's analysis for the first quarter, along with market risk disclosures and control assessments [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for the three months ended March 31, 2022, and related notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2022, total assets were $509.0 million, a slight decrease from $520.2 million, primarily due to reduced cash and cash equivalents, while liabilities also decreased Balance Sheet Summary | Balance Sheet Items | March 31, 2022 (Unaudited) ($) | December 31, 2021 ($) | | :--- | :--- | :--- | | **Total Current Assets** | $332,309,538 | $342,608,136 | | **Total Assets** | $509,030,721 | $520,160,272 | | **Total Current Liabilities** | $55,950,060 | $64,162,690 | | **Total Liabilities** | $66,731,808 | $76,959,945 | | **Total Stockholders' Equity** | $442,298,913 | $443,200,327 | | **Cash and cash equivalents** | $99,997,938 | $129,223,443 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) Q1 2022 net revenues increased 55.8% to $24.9 million, but gross profit decreased 45.2% to $2.4 million, while net loss narrowed to $1.6 million due to reduced operating expenses Income Statement Summary | Income Statement | Three Months Ended March 31, 2022 ($) | Three Months Ended March 31, 2021 ($) | | :--- | :--- | :--- | | **Revenues, Net** | $24,891,404 | $15,977,754 | | **Gross Profit** | $2,387,163 | $4,354,351 | | **Expense from Operations** | ($5,703,653) | ($22,847,235) | | **Net Loss Attributable to Stockholders** | ($1,616,056) | ($6,402,720) | | **Net Loss Per Share (Basic and Diluted)** | ($0.02) | ($0.08) | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity slightly decreased to $442.3 million in Q1 2022, primarily due to a $1.6 million net loss and stock buybacks, partially offset by foreign currency translation gains - Key changes in stockholders' equity for Q1 2022 included a stock buyback of **$1,583,560**, a net loss of **$1,619,013**, and a positive foreign currency translation adjustment of **$1,009,811**[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2022 saw $6.2 million cash generated from operations, a significant improvement, while $16.7 million was used in investing activities and $0.3 million in financing, leading to a $10.5 million overall cash decrease Cash Flow Summary | Cash Flow Activities | Three Months Ended March 31, 2022 ($) | Three Months Ended March 31, 2021 ($) | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $6,188,441 | ($6,017,280) | | **Net cash (used in) provided by investing activities** | ($16,716,300) | $11,130,031 | | **Net cash used in financing activities** | ($279,829) | $0 | | **Net (Decrease) Increase in Cash** | ($10,807,688) | $5,112,751 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's EV business, liquidity with **$276.4 million** working capital, customer and supplier concentrations, the Q1 2021 sale of a 22% affiliate stake, ongoing legal proceedings, and revenue breakdown by product and geography - The company is a leading producer of **electric vehicle (EV) products**, EV parts, and off-road vehicles, operating primarily through its PRC and US subsidiaries[30](index=30&type=chunk) - In Q1 2022, three customers (A, B, and C) each accounted for **13%**, **10%**, and **10%** of consolidated revenue, indicating significant customer concentration[46](index=46&type=chunk)[47](index=47&type=chunk) - On February 18, 2021, the company agreed to sell its remaining **22%** equity interest in the Former Affiliate Company to Geely for approximately **$48 million**, with the transaction completed on March 9, 2021[93](index=93&type=chunk) Revenue by Product | Revenue by Product (Q1 2022 vs Q1 2021) | Q1 2022 Sales ($) | Q1 2021 Sales ($) | | :--- | :--- | :--- | | Off-road vehicles | $10,713,741 | $5,619,004 | | Lithium-ion cells | $8,017,054 | - | | EV parts | $3,667,778 | $6,368,331 | | Electric Scooters & parts | $2,127,365 | $3,868,925 | | EV products | $339,955 | $121,494 | | **Total** | **$24,891,404** | **$15,977,754** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2022 results, noting a **55.8%** revenue increase to **$24.9 million** driven by off-road vehicles and lithium-ion cells, a gross margin decline to **9.6%**, and a **94.7%** R&D expense decrease, reducing net loss to **$1.6 million** Key Performance Indicators | Key Performance Indicators | Q1 2022 ($) | Q1 2021 ($) | | :--- | :--- | :--- | | **Total Revenue** | $24,891,404 | $15,977,754 | | **Gross Profit** | $2,387,163 | $4,354,351 | | **Gross Margin** | 9.6% | 27.3% | | **Net Loss** | ($1,619,013) | ($6,402,720) | - Revenue growth was mainly due to increased sales of **off-road vehicles** and the inclusion of **lithium-ion cell sales** from the newly acquired Jiangxi Huiyi[119](index=119&type=chunk) - Gross margin decreased primarily due to a product mix with a higher concentration of **lower-margin products**, such as lithium-ion cells, and aggressive pricing for a new off-road vehicle brand[130](index=130&type=chunk) - R&D expenses decreased by **94.7%** to **$1.1 million**, as R&D for a new product was completed in the prior-year period[131](index=131&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks include foreign exchange fluctuations between USD and RMB, minimal interest rate risk, significant credit risk, and broader economic, political, and pandemic-related risks, especially those in China - The main market risk is **foreign exchange rate fluctuation** between the USD and RMB, as the majority of revenues and costs are denominated in RMB[149](index=149&type=chunk) - **Interest rate risk** is considered immaterial as of March 31, 2022, due to fixed-rate debt instruments and the short-term nature of cash equivalents[152](index=152&type=chunk) - **Credit risk** is significant and is managed through credit approvals, limits, and by typically requiring prepayment from customers[156](index=156&type=chunk) - The **COVID-19 outbreak** continues to pose a risk, potentially affecting demand, supply chains, and overall financial condition[157](index=157&type=chunk)[159](index=159&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures** were effective as of the end of the period covered by the report[161](index=161&type=chunk) - No changes in **internal control over financial reporting** occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[163](index=163&type=chunk) [PART II — OTHER INFORMATION](index=38&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section covers legal proceedings, updated risk factors, details on equity security sales, and a list of exhibits filed with the report [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20proceedings) The company is involved in various legal matters, including shareholder class actions, which management believes are without merit and for which potential loss cannot be estimated - The company is defending against several putative **shareholder class actions** and **derivative lawsuits** filed in U.S. federal courts[99](index=99&type=chunk)[104](index=104&type=chunk)[165](index=165&type=chunk) - The company is unable to estimate the possible loss, if any, associated with these litigations, noting that an unfavorable outcome could negatively impact its **financial condition**[105](index=105&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, focusing on regulatory risks from China's Cybersecurity Review Measures and the U.S. Holding Foreign Companies Accountable Act (HFCAA), which could impact overseas listings and delisting - China's **Cybersecurity Review Measures**, effective February 15, 2022, require online platform operators with over **one million users** to undergo a cybersecurity review for foreign listings, which the company believes does not currently apply to its operations[167](index=167&type=chunk)[169](index=169&type=chunk) - The **Holding Foreign Companies Accountable Act (HFCAA)** poses a risk of delisting from U.S. exchanges if the company's auditor cannot be inspected by the PCAOB for **three (potentially reduced to two) consecutive years**[172](index=172&type=chunk)[176](index=176&type=chunk) - The company's current auditor is **U.S.-based** and subject to **PCAOB inspection**, making the HFCAA not currently applicable, but this status could change in the future[173](index=173&type=chunk)[177](index=177&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details its stock repurchase program, which authorized up to **$20 million** on December 1, 2021, with **1,138,785 shares** repurchased at an average price of **$3.48** as of March 31, 2022, leaving **$16.0 million** available Stock Repurchase Program | Period | Total Shares Purchased (Shares) | Average Price Paid ($) | Remaining Authorization ($) | | :--- | :--- | :--- | :--- | | Dec 2021 | 679,749 | $3.52 | $17,607,284 | | Jan 2022 | 459,036 | $3.42 | $16,037,380 | | Feb 2022 | - | - | $16,037,380 | | Mar 2022 | - | - | $16,037,380 | | **Total as of Mar 31, 2022** | **1,138,785** | **$3.48** | **$16,037,380** | - Between April 1 and May 5, 2022, the company repurchased an additional **603,500 shares** at an average price of **$2.69 per share**[108](index=108&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including CEO and CFO certifications required by Sarbanes-Oxley Act and Inline XBRL financial data documents - The filing includes **CEO and CFO certifications** pursuant to Rule 13a-14(a)/15d-14(a) and Section 906 of the Sarbanes-Oxley Act of 2002[182](index=182&type=chunk) - **Interactive Data Files** are provided in **Inline XBRL format** as required[182](index=182&type=chunk)

Kandi Technologies Group, Inc. (NASDAQ:KNDI) Q4 2021 Results Conference Call March 15, 2022 8:00 AM ET Company Participants Kewa Luo - Manager, IR Xiaoming Hu - CEO Alan Lim - CFO Conference Call Participants Arthur Porcari - Corporate Strategies Walter Hill - Carty & Company Michael Pfeffer - Oppenheimer Operator Greetings. Welcome to Kandi Technologies Full Year 2021 Financial Results Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Kewa ...

Financial Data and Key Metrics Changes - The company reported impressive revenue growth in the electric scooter and electric self-balancing scooter segments, which accounted for nearly 40% of total quarterly sales, growing approximately 600% year-over-year [7][12] - The company achieved a working capital of about $289 million, marking the best liquidity status in its history [12] Business Line Data and Key Metrics Changes - Sales of electric vehicle parts decreased due to supply chain tensions and restructuring of the pure EV business, while vehicle sales declined compared to last year but increased by 25% sequentially, accounting for over 40% of total revenue [11][12] - Consumer demand for off-road vehicles, including ATVs and UTVs, is increasing, with plans to formally launch the K32 model soon [11][12] Market Data and Key Metrics Changes - The micro mobility market, including e-scooters, is projected to reach annual sales of $200 to $300 billion in the U.S. by 2030, driven by the COVID-19 pandemic which accelerated demand for such vehicles [9][10] Company Strategy and Development Direction - The company is focusing on the electric vehicle market while also expanding into the micro mobility segment as a supplemental business [25] - Plans include entering the electronic UTV and ATV market, leveraging technology to meet upcoming emission standards [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the EV market and the strong growth potential of e-scooters and off-road vehicles, indicating excitement about future opportunities [12][28] - The company is working on meeting U.S. safety standards for its EV models, with expectations to begin mass production by March or April 2022 [18][26] Other Important Information - The company is considering a share buyback based on market conditions, although specific details on timing and pricing were not disclosed [20][21] Q&A Session Summary Question: Is the factory on Hainan Island currently active and making cars? - The production of EV products is still being adjusted, and the company is seeking new partnerships for production after withdrawing from cooperation with Geely [17] Question: When do you expect the K23 and K27 models to be approved for highway travel in the U.S.? - The regular models have not yet met DOT safety standards, and the company is working on improvements without a specific timeline for completion [18] Question: Are you still contemplating a share buyback? - The company is considering a share buyback based on market conditions and will execute it at the appropriate moment [21] Question: What steps are being taken to address competition in the EV market? - The company is focusing on the car hailing platform and entering the electronic UTV and ATV market to remain competitive [25][26]

Kandi Technologies Group, Inc. (NASDAQ:KNDI) Q2 2021 Earnings Conference Call August 9, 2021 8:00 AM ET Company Participants Kewa Luo - Investor Relations Xiaoming Hu - Chief Executive Officer Alan Lim - Chief Financial Officer Conference Call Participants Walter Hill - Carty & Company Mike Pfeffer - Oppenheimer Mark Kahnau - Swift Liquid Future Frank Blatterman - Private Investor Arthur Porcari - Corporate Strategies Operator Greetings. Welcome to Kandi Technologies Second Quarter 2021 Financial Results Ca ...

Kandi Technologies Group, Inc. (NASDAQ:KNDI) Q1 2021 Earnings Conference Call May 10, 2021 8:00 AM ET Company Participants Kewa Luo - Manager of Investor Relations Xiaoming Hu - Chief Executive Officer & Chairman Alan Lim - Chief Financial Officer Conference Call Participants Arthur Porcari - Corporate Strategies Incorporated Michael Fearnow – Focus Tech Investments Mike Pfeffer - Oppenheimer Operator Greetings and welcome to the Kandi Technologies First Quarter 2021 Financial Results Call. At this time, al ...