Kandi Technologies Reports 2011 Financial Results
GAAP Net Income Rose 1058% to $9.11 Million on 6% Decline in Revenues; Company Expresses Optimism on Near Term EV Sales Boost
(firmenpresse) - JINHUA, CHINA -- (Marketwire) -- 03/30/12 -- (NASDAQ: KNDI), a leading Chinese manufacturer and developer of pure electric vehicles (EVs) and all-terrain vehicles (ATVs), reported today its financial results for the fourth quarter and full year ending December 31, 2011.
The Company noted that its principal focus during the year was to more firmly establish its leadership position in the emerging pure EV market in China and globally, building toward what it believes will be a "breakthrough" year for EV sales in 2012. At the same time, during the year its traditional business continued to buck a still sluggish economic environment. Consequently, while GAAP net income was up sharply for the full year, both revenues and non-GAAP net income were somewhat lower despite a strong rebound in ATV sales and increased sales of pure EVs.
(*see note below on Non-GAAP figures)
Net revenues for the year ended December 31, 2011 were $40,177,148, compared with $42,880,300 last year, a decline of 6%.
GAAP net income in 2011 grew 1058% to $9,114,770 including $5,401,929 of income resulting from the change in fair value of financial instruments compared with a loss of $(951,439) which included $(2,725,987) of loss resulting from the change in fair value of financial instruments in 2010.
Diluted GAAP EPS in 2011 was $0.32 per share (28.7 million weighted average diluted shares) as compared with a loss of $(0.04) per share in 2010 (22.2 million weighted average diluted shares).
2011 non-GAAP net income was $4.0 million or $0.14 per diluted share, down 19% from $4.97 million or $0.22 per diluted share on a non-GAAP basis in 2010. (*)
Pure EV sales contributed more than $6.2 million to total revenues in 2011, as unit sales nearly doubled from 658 super mini-cars sold in 2010 to 1076 sold in 2011.
During the year the Company invested more than $9.83 million in new equipment and molds to increase mini-car production capacity, while also increasing mini-car related marketing and R&D expenditures.
Revenues in the 2011 fourth quarter were $11,387,382, down 21% from $14,345,368 in Q4 last year.
In the 2011 fourth quarter the Company recorded a GAAP net loss of ($829,831) compared with a net loss in same quarter last year of ($219,138)
On a non-GAAP basis, net income in the 2011 fourth quarter was $1,346,907, down 31% from $1,940,413 in last year's final quarter. (*)
Working capital surplus as of December 31, 2011 was $17.47 million, compared with $18,522,694 on December 31, 2010, principally due to the Company using part of the proceeds raised in the Company's equity offerings in 2010 to purchase construction in progress and fixed assets.
The Company said its most successful traditional products in 2011 were its ATVs which experienced a 70% year over year increase in unit sales and 30% increase in revenues as the Company developed more price competitive products. A relatively new product category in 2011was refitted cars, which generated nearly $2 million in revenues, and has continuing growth potential. Sales of TT motorcycles remained slow as the role of the three-wheeler shifted from recreational use to street legal use. Sales of the Company's high end UTVs decreased year over year, but showed improvement in the second half as new products were introduced to the market. Revenues and unit sales from the go-karts decreased roughly 10% and 9% from last year, respectively, but the impact was most apparent in the fourth quarter. While the go-kart sales increased over the first three quarters, they could not match the sharp spike in sales in the fourth quarter last year, which developed on the basis of pent up demand.
The Company's Super-Mini segment, which it believes offers the most significant long term growth potential, achieved a number of milestones during 2011, as the Company continued to build a strong base for future growth. Perhaps most significantly, since October 12, 2011, as previously reported, both the Jinhua City government and the Zhejiang Province government have formally agreed to initiate substantial subsidies to buyers of pure electric vehicles.
Additional progress has been made since the end of year 2011. As announced, the Company signed an exchange agreement under which Yongkang Scrou Electric Co., Ltd. ("Scrou"), a leading Chinese manufacturer of motors and related products for pure EVs, will become a subsidiary of the Company. And, in February and March this year, two new Kandi pure electric cargo vehicles are included in the list issued by the Ministry of Industry and Information Technology of China. The KD5011XXYEV model is among the first on the list of Energy-Saving and New Energy Vehicles for Registration Tax Reduction and Exemption, approved by the Ministry of Finance, Ministry of State Administration of Taxation, and Ministry of Industry and Information Technology of China KD5011XXYEV model is exempted from the annual registration tax for the vehicle owner.
As noted above, actual sales of EVs during the year of 2011 trended up to 1,076 vehicles. To ensure the Company will be able to meet what it anticipates to be growing demand for its EVs in China in 2012 and beyond, the Company spent close to $10 million on new equipment in 2011, which, with additional future expenditures being planned, should permit expansion over time to a targeted production capacity of 20,000 to 100,000 vehicles annually.
Mr. Xiaoming Hu, CEO and Chairman of the Company, commented, "We remain very optimistic about the EV market in China and the leading role we believe we can play in it. We have been setting the stage for success for some time now and believe that 2012 will be a breakout year for Kandi and for what we see as a transformative industry worldwide. Most recently, in mid-March, we had very encouraging conversations with a key official who is responsible for the 20,000 EV project in Hangzhou in connection with a group led by him to inspect our facilities and test drive Kandi's electric vehicles. As a consequence, we are encouraged to be informed that 20,000 EVs will be able to launch in Hangzhou soon. Our discussion in regards to becoming the EV provider also is coming to a conclusion. Kandi's anticipated role in this launch would have an enormous positive impact on our Company and open many new opportunities if we are successful."
Kandi Technologies, Corp. (NASDAQ: KNDI) is a manufacturer and exporter of a variety of vehicles in China, making it a world leader in the production of popular off-road vehicles (ORVs). It also ranks among the leading manufacturers in China of all-terrain vehicles (ATVs), specialized utility vehicles (UTVs), and a recently introduced second-generation high mileage, two-seat three-wheeled motorcycle. Another major company focus has been on the manufacture and sale of the COCO electric vehicle (EV), a highly economical, beautifully designed, all-electric super mini-car for neighborhood driving and commuting. The convertible and hardtop models of the COCO EV are available in the United States and other countries, while the Chinese government has approved the sale of Kandi EVs in China since 2010. The Company's products can be viewed at and its corporate website is .
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Kandi Technologies Corp.
Phone: 86-579-82239856
Email:
Phone: 1-212-551-3610
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Datum: 30.03.2012 - 06:15 Uhr
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