Financial Data and Key Metrics Changes - Net revenues for Q2 2025 were $36.3 million, down 39.3% from $59.8 million in Q2 2024, primarily due to lower sales of auto vehicles and EV products [16] - Cost of goods sold decreased to $19.9 million, a 51.3% decline from $40.9 million in the same period of 2024, reflecting the decrease in sales [17] - Gross profit was $16.4 million, compared to $19 million in Q2 2024, with gross margin improving to 45.2%, up from 31.7% last year [17] - Total operating expenses were $18.3 million, down 21.4% from $23.3 million in Q2 2024 [17] - Net income was $1.7 million, compared to $2.4 million in Q2 2024, with basic and diluted net income per share at $0.02, down from $0.03 [20] Business Line Data and Key Metrics Changes - The focus on inventory management within retail channels led to a gross margin improvement to 45.2%, up 13.5 percentage points from 31.7% in the same period of 2024 [8] - The dealer to retail sales mix improved from 1:9 to 2:8 as of June 2025, indicating a more diversified channel structure [10] - Research and development expenses increased by 48.5% to $2.5 million, mainly due to a new battery product R&D project [18] Market Data and Key Metrics Changes - The company has reinforced partnerships with major retailers, including Lowe's, and expanded its dealer network to 50 retail outlets [9] - The company is exploring high-margin direct-to-consumer channels and e-commerce platforms to enhance market share and profitability [11] Company Strategy and Development Direction - The company is transitioning from a conventional manufacturing enterprise to a holding platform focused on intelligent equipment manufacturing [7] - Kandi Technologies is pursuing a dual engine strategy, balancing stable cash flow businesses with growth incubation businesses [14] - The company aims to maintain competitive edge and create long-term value for shareholders through disciplined execution and continuous innovation [14] Management's Comments on Operating Environment and Future Outlook - The global microeconomic landscape remains uncertain, presenting challenges for the business [6] - Despite short-term volatility, the company believes its focus on optimized operations and technological innovation positions it for long-term development [14] - The company is confident in its strategic growth initiatives and ongoing business expansions, supported by a strong balance sheet with $257 million in cash and equivalents [13] Other Important Information - The company has established itself as a pioneer in battery swapping technology and secured its first order to support CATL's rollout of 10,000 battery swapping stations [12] Q&A Session Summary - No specific questions or answers were recorded in the provided content, and the call concluded without further inquiries [22][23]

Core Viewpoint - Kandi Technologies Group, Inc. has entered into a strategic partnership with Contemporary Amperex Technology Co., Ltd. (CATL) through its subsidiary, China Battery Exchange, to enhance the battery swapping ecosystem in China, supporting CATL's ambitious deployment plan for battery swapping stations [1][2][5]. Group 1: Partnership and Strategic Importance - The partnership signifies China Battery Exchange's official entry into CATL's battery swap ecosystem, which is crucial for CATL's "Ten Thousand Station Plan" [2]. - This collaboration is expected to deepen Kandi Technologies' strategic footprint in the new energy infrastructure sector, unlocking significant growth opportunities [5]. Group 2: Agreement Details - Under the Framework Procurement Contract, China Battery Exchange will supply standardized, high-performance battery swapping station equipment, including main station structures and advanced robotic systems [3]. - CATL aims to deploy 500 battery swapping stations in the current year, with a long-term goal of over 10,000 stations across mainland China, creating substantial demand for battery swapping equipment [3]. Group 3: Technological Advancements - Kandi Technologies is recognized as a pioneering force in China's electric vehicle battery swapping ecosystem, featuring an intelligent battery swapping system with rapid 90-second swapping and automated billing [4]. - The company’s system includes nine core modules, enhancing operational efficiency and user experience in battery swapping [4]. Group 4: Company Background - Kandi Technologies Group, Inc. specializes in the research, development, and manufacturing of all-electric personal transportation and utility vehicles, with a focus on off-road mobility solutions [7]. - The company is headquartered in Jinhua, China, and is actively pursuing opportunities in emerging high-tech areas, leveraging its robust manufacturing capabilities [7].