Kandi Technologies Q2: 72% Sales Jump, Margin Expansion, Momentum In Off-Road Vehicles & More

Kandi Technologies Group Inc (NASDAQ: KNDI) reported a second-quarter FY23 sales increase of 72.5% year-on-year to $35.95 million.

The electric vehicle company registered an EPS of $0.06 versus a $(0.02) loss the prior year.

Xueqin Dong, CEO of Kandi commented, "The Company's efforts invested in product transformation over the past few years have finally borne fruit this year, leading to a successful turnaround from losses to profits."

Gross margin expanded sharply to 38.2% from 13%, primarily due to the greater profitability of off-road vehicles, with crossover golf carts significantly contributing to this increase. 

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Operating expenses rose to $14 million from $9 million in the same period of 2022.

Net income was $4.4 million, a noteworthy improvement compared to a net loss of $(1.9) million during the same period in 2022. The primary factor for the swing in profit was the better gross margins.

"The success of our all-electric off-road vehicles is the driving force behind our sales recovery and return to profitability. We see immense potential in the US off-road vehicle market, and we are dedicated to expanding our product offerings to meet the evolving demands of our customers," Dong added.

The company held $232.5 million in cash and equivalents at quarter end.

Price Action: KNDI shares are trading lower by 0.55% at $3.59 on the last check Tuesday.