Research and Trading Portal for US-listed China Stocks · March 29, 2017
China Tracker - Details for Kandi Technologies (KNDI)
We are delighted that we solidly grew our revenue. The sales of ATV and go-kart will continue with the high growth. The EV sales have begun to boost as the strong government support and our brand and technologies of pure EV started to be introduced in Jinhua, Hangzhou and other potential cities throughout China. We are very excited by the growing momentum for the EV demand and continue to see strong growth from ATV and go-kart sales. We will continue to work diligently with the regional government and industry partners to expand our EV sales distribution and network. With cooperative letters of intent we have signed recently, we are confident about the future growth of our EVs and becoming the leader in this market.
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.
"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 continues its progress toward becoming a leader in the pure EV market in China. Given our strategic relationships and investments, we believe Kandi is well positioned to anticipate growing demand for EVs. That said, we recognize that the organic development of markets for these emerging technologies will take time. As a result, we expect sales to grow modestly over the near term.
Kandi Technologies has received authorization from its board of directors for a share repurchase program under which the Company may acquire up to $5 million of Kandi's outstanding common shares from time to time over the next 18 months. Kandi Technologies plans to fund repurchases from its available cash balance. "This decision reflects the board's confidence in the underlying value of Kandi Technologies. We believe our recent electric vehicle partnerships and 'Express Change' technology, coupled with our legacy off-road vehicle success, indicate a higher value for Kandi than is currently reflected in our share price."
Kandi Technologies published a letter to its shareholders today to provide a detailed explanation of a reporting error that does not affect reported revenues but does affect unit volumes of products reported in the Company's 2010 Annual Report as filed on Form 10-K.
Kandi Technologies said it intends to release a response as soon as possible regarding a recent online story about Kandi. The Company believes the story is inaccurate and is causing volatility in the Company's stock. Kandi affirmed that there are no new developments at the company to warrant the stock price decline.
We anticipate growing interest in our EV from various local municipal services such as the Postal Service. At the same time, we will look to expand our Chinese consumer base, and to derive revenues from auto sales as well as from servicing the cars working with our joint venture partners. Longer term, the outlook for Kandi is very bright. Around the world there is growing interest in electric vehicles and our "Express Change" business model. We strive to be a leading market player in this space, not only with the introduction of KD 5010EVs for Chinese consumers and the CoCo for the U.S. and other countries, but also with continuing innovations throughout the year. Great design and innovation always have been hallmarks of our Company -- and this will continue to be the case in the future.
Kandi Technolgies announced today it has expanded its "Express Change" Pure EV line with the development of a new lithium ion battery powered model, the KD5011. The Company also was able to confirm that with its appearance on the Vehicle Manufacturers and Products List just published by the Ministry of Industry and Information, the new KD5011 is eligible for national subsidies of up to US$9,000 per vehicle in all "pilot" cities designated as such to date by the Chinese government.
The Company said that successful development of the new KD5011 EV greatly expands the scope of its present market and lays the foundation for sales of the vehicle in all "pilot" cities throughout China. Further, the number of "pilot" cities is likely to grow as the government is expected to expand the program. The Company expects the KD5011 to be put on the market in Hangzhou, one of the five original pilot cities, within the next few months. This is in line with the Company's recent announcement that it was in advanced talks with Hangzhou officials to speed up the implementation of their plan to be an EV leader in China, with expected sales of more than 20,000 EVs before the end of 2012.
"We are pleased by the double digit gains we reported for the quarter, boosted by strong go kart results in the pre-holiday period. In fact, we are seeing a further strengthening of our recreational product sales thus far in our fourth quarter, which we believe will permit full year Kandi sales to reach or exceed $40mm. Going forward, the development of EV sales in China will increasingly become our major focus, and could make an increasing contribution to our revenues and profits. In addition we are gratified to see a return to sales and earnings levels achieved prior to the world economic crisis in our traditional recreational vehicle business. There is still an excellent growth opportunity ahead for our recreational vehicles, especially as we broaden our sales efforts to include other countries as well as a potentially burgeoning market in China."
Kandi Technologies today announced it has formalized a three partner joint venture with China's leading battery maker, Tianneng Power International, Ltd., and Jinhua Bada Group, a subsidiary of State Grid Power Corporation, China's largest power company, to create China's first Electric Vehicle (EV) battery replacement services company.
Just after the end of the year, on January 4, 2010, the Company announced the launch of a new strategic Alliance with major energy, IT and battery companies in China to pursue a new open architecture business model for mass adoption of EVs which would reduce consumer purchase costs, eliminate battery concerns and permit substantially increased driving ranges. The Alliance has targeted Jinhua city, where Kandi is based, as its first test city in developing a comprehensive solution to the problems of mass production and utilization of EVs that could be expanded throughout China if successful. As a partner in the Alliance, Kandi's key contribution will be its battery powered vehicles and EV technology, and the Company also expects to share in revenues that may be generated by the battery replacement stations that are a key element in the revolutionary approach to expanding EV utilization for every day driving.