Kandi Stock Ends Higher on Increased Revenue, Narrowed Net Loss in 2018
The chairman and CEO of the electric vehicle maker said “2018 was to be the year of survival, 2019 of revival, and 2020 will be the year of prosperity," as the company plans to enter the U.S. market.
The stock of Chinese electric vehicle maker Kandi Technologies Group Inc. (Nasdaq: KNDI) closed up more than 4 percent Friday at $7.77 per American depositary share after reporting revenue increase of 9 percent for 2018.
In a statement today, Kandi reported revenue of $112.4 million for the 12 months through December. Its net loss was $5.7 million, or 11 cents per share, compared with a loss of $28.3 million, or 59 cents per share in 2017.
The company said its sales of EV parts grew 2 percent last year to $99.1 million, while off-road vehicle sales soared 145 percent to $13.3 million. Its joint venture with Geely Group, Kandi Electric Vehicles Group Co. Ltd. (JV Company), has sold 10,259 EV products in 2018, 10 percent less than in the preceding year.
"2018 was to be the year of survival, 2019 of revival, and 2020 will be the year of prosperity," Kandi's chairman and chief executive, Xiaoming Hu, said in the statement. "Through our hard work in 2018, we rebuilt and refined our practices, and as a result, we are very pleased with our financial performance."
He added that he hopes the JV Company reaches its goal of selling 20,000 electric vehicles this year.
Hu also commented on Kandi's planned expansion to the United States. Last month, two of the company's models, EX3 and K22, received approval for import and registration in the U.S.
"Following the U.S. National Highway Traffic Safety Administration's (NHTSA) approval of certain Kandi EV models for importation and registration in the U.S., Kandi EV models are now eligible for up to $7,500 in federal tax credits in 2019 and 2020. To capitalize on the opportunity presented by the NHTSA's approval, we are in the process of preparing a strategic sales plan for the debut of Kandi EV models in the American market later this year," he said.