Kandi Technologies Reports First Half of 2025 Unaudited Financial Results

Rhea-AI Summary

Kandi Technologies (NASDAQ: KNDI) has released its unaudited financial results for H1 2025, showing mixed performance. Total net revenues decreased 39.3% to $36.3 million from $59.8 million in H1 2024, primarily due to lower sales in off-road vehicles and EV products. However, gross margin significantly improved to 45.2% from 31.7% year-over-year.

The company reported net income of $1.7 million ($0.02 per share), down from $2.4 million ($0.03 per share) in H1 2024. Notable developments include strategic cooperation with Deep Robotics for intelligent robots and the company's subsidiary securing its first heavy-truck battery swap station equipment order. Kandi maintains a strong financial position with $256.7 million in cash and equivalents, up from $126.3 million at the end of 2024.

Positive

• Significant gross margin improvement to 45.2% from 31.7% year-over-year
• Strong cash position of $256.7M, more than doubled from $126.3M at end of 2024
• 55.6% reduction in operating loss to $1.9M from $4.4M in prior year
• Strategic expansion into robotics and battery swap infrastructure markets

Negative

• Revenue declined 39.3% to $36.3M from $59.8M year-over-year
• Net income decreased 28.7% to $1.7M from $2.4M in prior year
• R&D expenses increased 48.5% to $2.5M
• Challenging global macroeconomic conditions affecting operations

Insights

Financial Analyst

Kandi shows improved profitability despite revenue decline; strategic diversification and strong cash position signal potential despite challenges.

Kandi Technologies' H1 2025 results present a mixed financial picture that requires careful analysis. The company experienced a substantial 39.3% revenue decline to $36.3 million, down from $59.8 million in H1 2024. However, the significant gross margin expansion to 45.2% from 31.7% demonstrates effective operational adjustments and improved product mix.

The dramatic cash position improvement is particularly noteworthy - Kandi now holds $256.7 million in cash and equivalents, more than doubling from $126.3 million at the end of 2024. This substantial liquidity represents about $3.28 per share (assuming approximately 78.3 million shares outstanding), providing significant financial flexibility for strategic initiatives.

Despite revenue challenges, Kandi managed to remain profitable with net income of $1.7 million ($0.02 per share), though down from $2.4 million in the prior year. The company has effectively controlled costs, reducing total operating expenses by 21.4% to $18.3 million. Most notably, selling and marketing expenses dropped by 35.8%, while general and administrative expenses decreased 22.6%.

The strategic pivot toward higher-margin products and expansion into emerging sectors like embodied intelligence (robotics) and battery swap infrastructure represents a deliberate diversification strategy. The company is leveraging its expertise in electric vehicles to enter adjacent high-growth markets, which could potentially offset the declining traditional revenue streams. The strategic partnership with Deep Robotics for North American market entry and the battery swap station equipment order under CATL's "Ten Thousand Station Plan" highlight Kandi's efforts to position itself in growth sectors beyond its core business.

• Gross margin further expansion to 45.2%, up from 31.7% in prior-year period
• Maintains strong financial position with $256.7M in cash, restricted cash, and time deposits

JINHUA, China, Aug. 19, 2025 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (“Kandi” or the “Company”) (NASDAQ GS: KNDI), a long renowned leader in all-electric personal transportation and utility vehicles, today announced its unaudited financial results for the six months ended June 30, 2025.

First Half 2025 Financial Highlights

• Total net revenues were $36.3 million, compared with $59.8 million for the same period of 2024.
• Gross margin increased to 45.2% from 31.7% for the same period of 2024.
• Net income was $1.7 million, compared with $2.4 million for the same period of 2024.
• As of June 30, 2025, the Company had cash and cash equivalents, restricted cash, and certificates of deposit totaling $256.7 million, compared with $126.3 million as of December 31, 2024.

Recent Development

• Fast-track entry into the embodied intelligence sector through strategic cooperation with Deep Robotics, co-developing intelligent golf caddy robots and security patrol quadruped robots for the North American market.
• Strengthened leadership in battery swap infrastructure as Kandi’s subsidiary, China Battery Exchange (Zhejiang) Technology Co., Ltd., became a supplier and secured its first heavy-truck battery swap station equipment order under Contemporary Amperex Technology Co., Limited’s “Ten Thousand Station Plan.”

Management Remarks

Mr. Feng Chen, CEO of Kandi, commented: “In the first half of 2025, the global macroeconomic landscape remained challenging, exerting pressure on our operations. Despite these headwind, we continued to strengthen our core off-road vehicle business through streamlined inventory management, enhanced manufacturing efficiency, and optimized sales network. These initiatives drove a substantial improvement in gross margin to 45.2%, compared with 31.7% in the same period of 2024. At the same time, we drove our expansion into high-potential technology sectors such as embodied intelligence and battery swap infrastructure, securing multiple strategic partnerships that established a strong foundation for sustainable growth. Looking ahead, supported by robust cash reserves, steadily improving operational efficiency, and myriad technological advantages, we will continue to increase R&D investment and refine our supply chain, while driving forward our dual-engine strategy of ‘stable cash flow business + growth incubation business’ to capture emerging opportunities and deliver long-term value for our shareholders.”

First Half 2025 Financial Results

REVENUES

Net revenues were $36.3 million, a decrease of 39.3% from $59.8 million for the same period of 2024. This decrease was mainly due to a decrease in sales of off-road vehicles and EV products.

COST OF GOODS SOLD

Cost of goods sold was $19.9 million, a decrease of 51.3% from $40.9 million for the same period of 2024. The decrease was primarily due to the corresponding decrease in sales.

GROSS PROFIT

Gross profit was $16.4 million, compared with $19.0 million for the same period of 2024. Gross margin was 45.2%, compared with 31.7% for the same period of 2024. The improvement in gross margin was primarily driven by changes in product mix and regional revenue distribution, as well as increased sales of impaired inventory compared with the same period last year.

OPERATING EXPENSES

Total operating expenses were $18.3 million, a decrease of 21.4% from $23.3 million for the same period of 2024.

Research and development expenses were $2.5 million, an increase of 48.5% from $1.7 million for the same period of 2024. The increase was mainly due to a research and development project for battery products conducted in the first half of 2025.

Selling and marketing expenses were $4.5 million, a decrease of 35.8% from $7.0 million for the same period of 2024. The decrease was in line with the scale of decrease in revenue.

General and administrative expenses were $11.3 million, a decrease of 22.6% from $14.6 million for the same period of 2024. The decrease was mainly due to reduced depreciation expenses driven by a one-time asset impairment recorded at the end of 2024, and reduced stock compensation expenses compared with the same period last year.

LOSS FROM OPERATIONS

Loss from operations was $1.9 million, a decrease of 55.6% from $4.4 million for the same period of 2024.

NET INCOME

Net income was $1.7 million, a decrease of 28.7% from $2.4 million for the same period of 2024.

Basic and diluted net income attributable to the Company’s shareholders per share were $0.02, compared with $0.03 for the same period of 2024.

BALANCE SHEET AND CASH FLOW

As of June 30, 2025, the Company had cash and cash equivalents, restricted cash, and certificates of deposit totaling $256.7 million, compared with $126.3 million as of December 31, 2024.

Conference Call

The Company’s management will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on August 19, 2025, or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the first half of 2025.

The dial-in and webcast 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=1730899&tp_key=39766435ca
  

A live and archived webcast of the conference call will also be available on the Company’s investor relations website at ir.kandigroup.com.

About Kandi Technologies Group, Inc.

Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) is a leader in the research, development, and manufacturing of all-electric personal transportation and utility vehicles. Headquartered in Jinhua, China, the Company’s primary focus is on off-road mobility solutions, with a strategic emphasis for the North American market, while actively pursuing opportunities in other related emerging high-tech areas. Through its subsidiaries, Kandi Technologies leverages its robust manufacturing capabilities and technological expertise to deliver innovative products for a wide range of commercial and consumer applications.

For more information, please visit ir.kandigroup.com.

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.

For investor and media inquiries, please contact:

Kandi Technologies Group, Inc.
Kewa Luo
Email: IR@kandigroup.com

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
Email: Kandi@thepiacentegroup.com

Piacente Financial Communications
Hui Fan
Tel: +86-10-6508-0677
Email: Kandi@thepiacentegroup.com

KANDI TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (All amounts in thousands)
		June 30, 2025				December 31, 2024
		(Unaudited)
CURRENT ASSETS
Cash and cash equivalents		$	32,247			$	37,308
Restricted cash			71,040				83,530
Certificate of deposit			153,486				5,481
Accounts receivable			10,815				26,463
Inventories			45,216				51,268
Notes receivable			-				346
Other receivables			6,160				144,721
Prepayments and prepaid expense			4,500				4,968
Advances to suppliers			741				562
TOTAL CURRENT ASSETS			324,205				354,647
NON-CURRENT ASSETS
Property, plant and equipment, net			62,381				63,504
Intangible assets, net			3,285				3,893
Land use rights, net			2,592				2,587
Deferred tax assets			6,492				6,497
Long-term investment			1,956				1,413
Goodwill			31,649				31,182
Other long-term assets			10,787				10,173
TOTAL NON-CURRENT ASSETS			119,142				119,249
TOTAL ASSETS		$	443,347			$	473,896
CURRENT LIABILITIES
Accounts payable		$	14,388			$	25,476
Other payables and accrued expenses			5,051				8,544
Short-term loans			37,385				37,529
Notes payable			23,536				41,621
Income tax payable			709				1,431
Advance receipts			109				-
Other current liabilities			5,217				5,795
TOTAL CURRENT LIABILITIES			86,395				120,396
NON-CURRENT LIABILITIES
Long-term loans			-				5,707
Deferred taxes liability			547				525
Other long-term liabilities			453				641
TOTAL NON-CURRENT LIABILITIES			1,000				6,873
TOTAL LIABILITIES			87,395				127,269
STOCKHOLDER'S EQUITY
Kandi technologies group, inc. stockholders' equity			354,050				344,697
Non-controlling interests			1,902				1,930
TOTAL STOCKHOLDERS' EQUITY			355,952				346,627
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	443,347			$	473,896

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 data)
		Six Months Ended
		June 30, 2025				June 30, 2024
REVENUES, NET		$	36,291			$	59,825
COST OF GOODS SOLD			(19,904	)			(40,858	)
GROSS PROFIT			16,387				18,967
OPERATING EXPENSE:
Research and development			(2,504	)			(1,685	)
Selling and marketing			(4,505	)			(7,023	)
General and administrative			(11,310	)			(14,612	)
TOTAL OPERATING EXPENSE			(18,319	)			(23,320	)
LOSS FROM OPERATIONS			(1,932	)			(4,353	)
OTHER INCOME (EXPENSE):
Interest income			4,334				3,633
Interest expense			(1,100	)			(965	)
Change in fair value of contingent consideration			-				936
Government grants			1,099				1,051
Other (loss) income, net			(853	)			2,525
TOTAL OTHER INCOME, NET			3,480				7,180
INCOME BEFORE INCOME TAXES			1,548				2,827
INCOME TAX BENEFIT (EXPENSE)			147				(449	)
NET INCOME			1,695				2,378
LESS: NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS			(29	)			63
NET INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS			1,724				2,315
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment			6,148				(9,823	)
COMPREHENSIVE INCOME (LOSS)		$	7,843			$	(7,445	)
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC			84,805,991				86,663,100
WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED			84,805,991				87,097,274
NET INCOME PER SHARE, BASIC		$	0.02			$	0.03
NET INCOME PER SHARE, DILUTED		$	0.02			$	0.03
NET INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE, BASIC		$	0.02			$	0.03
NET INCOME ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS PER SHARE, DILUTED		$	0.02			$	0.03

FAQ

What were Kandi Technologies (KNDI) key financial results for H1 2025?

Kandi reported revenue of $36.3M, net income of $1.7M, and improved gross margin of 45.2%. The company maintained a strong cash position of $256.7M.

How did KNDI's gross margin perform in H1 2025 compared to H1 2024?

Kandi's gross margin significantly improved to 45.2% from 31.7% in H1 2024, driven by changes in product mix, regional revenue distribution, and increased sales of impaired inventory.

What strategic developments did Kandi Technologies announce in H1 2025?

Kandi announced strategic cooperation with Deep Robotics for intelligent golf caddy and security patrol robots, and secured its first heavy-truck battery swap station equipment order through its subsidiary.

Why did Kandi's revenue decline in H1 2025?

The 39.3% revenue decline was primarily due to decreased sales of off-road vehicles and EV products, amid challenging global macroeconomic conditions.

What is Kandi Technologies' current cash position as of June 2025?

As of June 30, 2025, Kandi had $256.7 million in cash, restricted cash, and certificates of deposit, up from $126.3 million at the end of 2024.