Kandi Technologies Group (KNDI) Swings to Q3 Profit

Kandi Technologies Group (NASDAQ: KNDI) reported Q3 EPS of $0.31, versus ($0.21) reported last year. Revenue for the quarter came in at $44.2 million, versus $17.2 million reported last year.

Third quarter Non-GAAP adjusted net income, which excludes stock award expense and change in the fair value of financial derivatives, was $5.37 million, or approximately $0.12 per fully diluted shares, a 716.5% increase from net loss of $0.87 million for the same period of 2013.

• Electric Vehicle ("EV") Parts sales increased by107.9% to $35.81 million as compared to $17.22 million in the second quarter of 2014;
• Gross profit for the third quarter of 2014 increased 33.9% to $5,51 million, compared to $4.11 million for the same period last year;
• The quarterly sales for the JV Company* was $46.8 million and net income was $4.4 million. Based on Kandi's 50% equity ownership in the JV Company, Kandi recorded $2.04 million net income (after tax and intra-entity elimination) in the third quarter of 2014;
• The JV Company sold 1,950 EV products during the third quarter of 2014;

"Our third quarter was another exciting quarter with strong top-line growth, improved financial condition and new strategic developments," commented Mr. Hu Xiaoming, Chairman and Chief Executive Officer of Kandi. "In particular, our EV manufacturing joint venture with Geely Auto, or the 'JV Company' achieved great quarterly net profit and net margin, despite the fact that the quarter was back-end loaded because the new EV purchase tax exemption did not become effective until September 1."

Mr. Hu continued: "During the quarter, we also made numerous business initiatives, including the initial delivery of Kandi brand EVs to Shanghai public pure EV sharing program, the unveiling of our new 4-seat pure EV model KD17 'Cyclone', and the successful completion of our $71 million registered direct offering. Given the increasing opportunities and demand for electric cars in China, as well as Kandi's solid foundation and financial strength, we believe we are in a great position to continue executing our current business strategy."

"Looking forward to the fourth quarter, we are confident that our business model is beginning to gain traction in both top-line and bottom-line growth," concluded Mr. Hu. "The Car-Share Program has been highly recognized and well received by the customers, we believe our EV business model will be expanded to more EV pilot cities in China. We are also thrilled with our recent partnership with Ant Financial Services Group to launch Alipay, including Alipay Wallet services and technology platform, to Kandi's EV end users. We hope to raise the market awareness of the Kandi brand through the 300 million registered Alipay users."

For earnings history and earnings-related data on Kandi Technologies Group (KNDI) click here.

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