Kandi Technologies Group Inc. (Nasdaq: KNDI) was among the top Chinese gainers in U.S. markets Monday on strong financial results for the second quarter.
In a statement today, the small-cap EV company, based in Jinhua, China, said revenue in the second quarter reached $29.9 million, a 54% year-over-year increase. Net income soared to $40.9 million, or 54 cents per share, compared with $4.1 million a year ago, Kandi reported.
The results send KNDI stock up 11% Monday, to $5.41 a share. A rebound from last week's losses, today's gains still leave Kandi trading down 26% year-to-date.
Sales of EV parts and off-road vehicles declined compared to the same period of 2020, while the sales of scooters and parts surged to $16.5 million, according to the statement. In addition, Kandi reported $600,000 in revenues from its new battery exchange business. The company continues to expand in this segment: Last month, Kandi acquired Jiangxi Huiyi to produce battery packs.
Xiaoming Hu, Kandi's chairman and chief executive officer, attributed the improvement in the second quarter to the company's "strategic initiative to find new markets for our industry-leading technology." He said, "This pivot to new markets is proved successful, as you can see by our strong growth in intelligent mobility sector and associated parts."
Hu also said Kandi received the final payments for the Jinhua factory relocation. The old facilities were returned to the government in return for payment, strengthening Kandi's cash flow. The company had $202.4 million in cash, cash equivalents, restricted cash, and certificate of deposit as of June 30.
Kandi plans to continue to expand in China's market of "affordable short-distance EVs," according to the statement. As to the U.S. market, Kandi hopes to launch sales of its K32 premium utility terrain vehicle (UTV) by the year's end in its U.S. stores.
Kandi unveiled its K32 fully-enclosed electric UTV in May. The vehicles are produced at its Hainan factory and feature "pure electric four-wheel-drive propulsion and a fully enclosed cockpit with air conditioning." The company especially highlights the comfort in its K32 that's not typical for UTVs. The battery supports a driving range of 60 miles, according to the statement.
So far, to the American buyer, Kandi offers its affordable-grade K27 4-door hatchback and the K23, which Kandi calls a "small SUV."