Kandi Technologies Group, Inc. (Nasdaq: KNDI) reported a tough year’s financial results today, but the company's anticipated U.S. entry drove investors' hopes and the company's stock 7% higher.
The Jinhua-based electric vehicle maker said net loss in 2020 widened 47% to $10.4 million, or 19 cents a share. Revenue declined 43% year-over-year to $76.9 million, according to the report.
EV parts sales, which made up the majority of Kandi's revenues, declined 63% to $40.6 million, while sales of off-road vehicles improved by 31% to $29.8 million. Electric scooters, electric self-balancing scooters, and associated parts sales increased by 161% to $5.8 million.
"The lockdowns and closures of stores and facilities around the world, caused by the spread of COVID-19, challenged every corner of the economy in 2020. Although our operations in China fully resumed in early March of 2020, sales of EV parts, one of our primary revenue sources, were severely impacted by several waves of the pandemic,” Xiaoming Hu, the chairman, and chief executive officer of Kandi, said in the statement.
He added, "Looking forward, we have multiple growth opportunities. We are dedicated to building our business in the U.S., and we are pursuing third and fourth-tier city government-accredited EV online ride-share service businesses."
In August, Kandi introduced its K23 and K27 EV models into the U.S. market, and the company has obtained clearance from the United States Environmental Protection Agency for both models.
Now, Hu said, Kandi is "working on some modifications to meet all Federal Motor Vehicle Safety Standards (FMVSS) requirements." He added that Kandi is also improving some features to adjust to U.S. consumer tastes.
In December, Kandi was hit by a short-seller report from Hindenburg Research. In the report, the firm alleged that Kandi has been falsifying its revenue by faking sales to undisclosed affiliates.
Hu denied the allegations, but Kandi's stock has not recovered from the damage. On Tuesday, shares in Kandi shifted higher to $6 apiece, but still down from their level of $14 per share in November 2020.