Kandi (KNDI) H1 Revenues Drop 39%; Gross Margin Rises to 45.2%

Kandi Technologies reported six-month net revenues of $36.3 million, down 39.3% from $59.8 million a year earlier, driven by a 37.0% drop in off-road vehicle and parts sales to $34.0 million.

Rhea-AI Filing Summary

Kandi Technologies reported six-month net revenues of $36.3 million, down 39.3% from $59.8 million a year earlier, driven by a 37.0% drop in off-road vehicle and parts sales to $34.0 million. Cost of goods sold fell to $19.9 million from $40.9 million, and gross profit decreased to $16.4 million from $19.0 million, though overall gross margin rose to 45.2% from 31.7% due to product mix and regional shifts.

Operating loss narrowed to $1.9 million from $4.4 million, while net income attributable to Kandi was $1.7 million (EPS $0.02) versus $2.3 million (EPS $0.03) prior year. R&D rose to $2.5 million (+48.5%) for battery projects; selling, distribution, and G&A expenses declined. Cash and equivalents totaled $257 million and working capital was $237.8 million.

Positive

• Gross margin improved to 45.2% from 31.7%, reflecting favorable product mix and regional revenue shift
• Operating loss narrowed to $1.9 million from $4.4 million, indicating reduced operating pressure
• Strong liquidity with $257 million in cash, restricted cash and certificate of deposit and $237.8 million in working capital
• Increased R&D spending to $2.5 million for battery projects, showing investment in product development

Negative

• Revenue fell 39.3% to $36.3 million, driven by a 37.0% decline in off-road vehicle and parts sales
• Net income declined to $1.7 million (EPS $0.02) from $2.3 million (EPS $0.03), a 25.5% decrease in attributable net income
• Cost of goods sold decreased 51.3% to $19.9 million, reflecting the sales drop rather than cost improvements
• Significant demand weakness in core products implied by steep year-over-year revenue reductions

Insights

Financial Analyst

TL;DR: Revenue contraction is material, but margins improved and liquidity remains strong.

The near-40% revenue decline is the standout negative, largely from reduced off-road vehicle and EV sales, which directly reduced absolute gross profit despite a higher gross margin percentage due to mix effects and impaired-inventory sales that carried higher margins. Operating loss improved meaningfully year-over-year, reflecting lower selling and G&A costs, while R&D spending increased to support battery development. Strong cash and working capital positions provide runway, but persistent revenue weakness is the primary risk to near-term recovery.

Industry Specialist

TL;DR: Cost structure adjustments and product-mix shifts improved margin, but demand shortfall is material.

Gross margin expanding to 45.2% indicates favorable mix or pricing on units sold, and reduced operating expenses show management cost control. Increased R&D investment into battery projects signals strategic focus on future products. However, a 37.0% fall in core product sales is a material demand signal for the company’s primary markets and warrants monitoring of shipment and order trends to assess recovery prospects.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were KNDI six-month revenues and how did they change year-over-year?

Six-month net revenues were $36.3 million, down 39.3% from $59.8 million in the same period of the prior year.

How did Kandi's gross profit and margin perform in the first half?

Gross profit was $16.4 million versus $19.0 million prior year; gross margin rose to 45.2% from 31.7%.

What was Kandi's net income and earnings per share for the six months?

Net income attributable to Kandi was $1.7 million, or $0.02 per diluted share, compared to $2.3 million, or $0.03 per diluted share previously.

What is Kandi's cash and working capital position?

Kandi reported $257 million in cash, restricted cash and certificates of deposit and $237.8 million in working capital as of June 30, 2025.

Why did R&D expense change and by how much?

R&D increased to $2.5 million, up 48.5%, primarily due to a battery product development project.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Form 6-K: How Foreign Companies Report to the SEC →

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Accepted by SEC EDGAR 08/19/2025 - 07:30 AM EDT Learn about SEC filing dates

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 OF THE
SECURITIES EXCHANGE ACT OF 1934

For the month of August 2025

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 offices)

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 its financial results for the six months ended June 30, 2025:

Six Months 2025 Financial Focus 

● Six-month revenues of $36.3 million slipped 39.3% year-over-year.

● Six-month revenue from off-road vehicles and associated parts decreased by 37.0% year-over-year to $34.0 million, compared to $54.0 million in the same period of 2024.

● Six-month net income was $1.7 million, or $0.02 income per fully diluted share, compared to a net income of $2.4 million, or $0.03 income per fully diluted share for the same period of 2024.

● Solid financial standing with $257 million in cash and cash equivalents, restricted cash and certificate of deposit as of June 30, 2025.

H1 2025 Key Financial Results

Net Revenues and Gross Profit (in USD millions)

		H1 2025				H1 2024				Y-o-Y%
Net Revenues		$	36.3			$	59.8				-39.3	%
Gross Profit		$	16.4			$	19.0				-13.6	%
Gross Margin%			45.2	%			31.7	%			-

● Net revenues in the first half of 2025 were $36.3 million compared to $59.8 million in the same period of 2024, representing a decrease of 39.3%, mainly due to a decrease in sales of off-road vehicles and EV products compared to the prior period.

● Cost of goods sold in the first half of 2025 was $19.9 million compared to $40.9 million in the same period of 2024, representing a decrease of 51.3%. The decrease was primarily due to the corresponding decrease in sales.

● Gross profit in the first half of 2025 was $16.4 million, compared to $19.0 million in the same period of 2024, representing a decrease of 13.6%. The overall gross margin for the first half was 45.2%, compared to 31.7% in the same period of 2024, reflecting the impact of the product mix and the regional revenue shift, as well as larger sales of impaired inventory compared to prior year which generated a larger margin.

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Operating Loss (in USD millions)

		H1 2025				H1 2024				Y-o-Y%
Operating Expenses		$	(18.3	)		$	(23.3	)			-21.4	%
Loss from Operations		$	(1.9	)		$	(4.4	)			-55.6	%
Operating Margin%			-5.3	%			-7.3	%			-

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

● Selling and distribution expenses totaled $4.5 million for the first half of 2025, representing a decrease of 35.8% compared to $7.0 million for the same period in 2024. The decrease in selling and distribution expenses was in line with the scale of decease in revenue.

● General and administrative expenses totaled $11.3 million for the first half of 2025, representing a decrease of 22.6% compared to $14.6 million for the same period in 2024. The decrease was mainly due to reduced depreciation expenses in the current period, driven by a one-time asset impairment recorded at the end of 2024, as well as reduced stock compensation expenses incurred in current period compared to prior period.

Net Income (in USD millions)

		H1 2025				H1 2024				Y-o-Y%
Net Income		$	1.7			$	2.4				-28.7	%
Net Income per Share, Basic and Diluted		$	0.02			$	0.03				-
Net Income attributable to Kandi		$	1.7			$	2.3				-25.5	%
Net Income attributable to Kandi per Share, Basic and Diluted		$	0.02			$	0.03				-

Net income was $1.7 million for the first half of 2025, representing a decrease of 28.7% compared to $2.4 million for the same period in 2024. The decrease was mainly due to the decrease in net revenue, as well as loss from long-term investment incurred during the current period.

Balance Sheet (in USD millions)

● Working capital was $237.8 million as of June 30, 2025.

- Tables Below -

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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

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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

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SIGNATURES

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 19, 2025	Kandi Technologies Group, Inc.
	By:	/s/ Feng Chen
	Name:	Feng Chen
	Title:	Chief Executive Officer

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