Kandi Technologies Group Q4 2025 Earnings Report

Kandi Technologies Group EPS Results

• Actual EPS: -$0.57
• Consensus EPS: $0.03
• Beat/Miss: Missed by -$0.60
• One Year Ago EPS: N/A

Kandi Technologies Group Revenue Results

• Actual Revenue: $25.57 million
• Expected Revenue: $64.30 million
• Beat/Miss: Missed by -$38.73 million
• YoY Revenue Growth: N/A

Kandi Technologies Group Announcement Details

• Quarter: Q4 2025
• Date: 4/29/2026
• Time: Before Market Opens
• Conference Call Date: Tuesday, April 28, 2026
• Conference Call Time: 8:00AM ET

Kandi Technologies Group (NASDAQ:KNDI) is a China-based manufacturer and developer of electric vehicles and powersports products. Through its subsidiaries, the company offers electric passenger vehicles, utility vehicles, recreational vehicles, all-terrain vehicles, golf carts and related products.

The company also develops and sells electric off-road vehicles, including electric UTVs, ATVs and other recreational and utility models. Its product portfolio has included vehicles designed for personal transportation, property maintenance, recreation and other light-duty applications, as well as related parts and accessories.

Kandi Technologies was founded in 2002 and is headquartered in Jinhua, Zhejiang Province, China. The company serves customers in China and international markets, including the United States, through its operating subsidiaries and distribution relationships. Kandi America is involved in the marketing and distribution of the company’s products in the U.S. The company is led by Chairman and Chief Executive Officer Hu Xiaoming.

Kandi Technologies Group Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Kandi reported a materially stronger liquidity and margin profile, with gross margin improving to 42.6%, $96.8M of net cash from operations, and $211.9M in cash at year-end.
• Negative Sentiment: Revenue declined 31.5% to $87.4M and the net loss widened to $95.6M (EPS -$1.12), driven by weak EV demand in China and trade/consumer pressure on higher‑priced recreation vehicles.
• Positive Sentiment: Management is pursuing a focused dual‑engine strategy, prioritizing North American off‑road EVs (UTVs, golf carts) and has acquired the premium brand Rawrr and engaged an external design team to upgrade products and target stronger 2026 sales.
• Positive Sentiment: The battery‑swap equipment business secured qualification in CATL’s supply chain, won initial heavy‑truck station equipment orders and signed a three‑year cooperation to mass‑produce, positioning Kandi for meaningful 2026 revenue from scaled deliveries.
• Neutral Sentiment: Kandi formed a JV (KH Robotics) to deploy quadruped robots in security and logistics, plans a functional demo by ~June 2026 and pilots in H2 2026, but this remains early‑stage and not expected to drive near‑term revenue.

Presentation

[Operator]

Greetings. Welcome to Kandi Technologies full year 2025 financial results call at this time all participants only listening mode as anyone require operator assistant during the conference please press star zero on your telephone keypad please note that this conference is being recorded. I will now turn the conference over to Kewa Luo, IR Director. Thank you. You may begin.

[Kewa Luo, IR Director at Kandi Technologies]

Thank you. Hello, everyone, and welcome to Kandi Technologies Group full year 2025 earnings conference call. As a reminder, today's call is being recorded. The current financial and operational highlights were issued in a press release earlier today and available online. You can access the earnings press release and subscribe to the company's email alerts by visiting the investor relations section of our website at ir.kandigroup.com. Joining us today are Mr. Feng Chen, Chief Executive Officer, and Mr. Alan Lim, Chief Financial Officer. Before we begin, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today.

[Kewa Luo, IR Director at Kandi Technologies]

Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligations to update any forward-looking statements, except as required under applicable laws. Unless otherwise noted, all financial figures discussed today are in US dollars. I will now turn the call over to our CEO, Mr. Feng Chen, who will deliver his remarks in Chinese, followed immediately by English translation. Mr. Chen, please go ahead.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

Good day, investors and analysts. Welcome to Kandi Technologies earnings conference call for the full year 2025. Thank you for your continued interest in and support of us.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

2025 was a pivotal year for Kandi. The past two years have been defined by a challenging macro backdrop marked by evolving geopolitics, shifting trade policies and uneven demand across our end markets, which weighed on our operating performance. We are clear-eyed about near-term revenue dynamics. At the same time, we are encouraged by what our team delivered beneath the surface. Meaningful improvements in operating quality, a stronger cash flow profile, and a materially healthier balance sheet.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

In 2025, our gross margin improved to 42.6%, up from 30.8% in 2024. We generated $96.8 million in net cash from operating activities and ended with $211.9 million in cash on hand. These results reflect our commitment to high-quality earnings, more sustainable cash flows, and stronger returns on invested capital.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

Over the past 18 months, one of my key priorities as CEO together with the management team, has been to review and reassess Kandi's business boundaries, growth trajectory, and long-term overall direction. Amid the opportunities presented by technological innovation and industrial upgrading, we are placing even greater emphasis on focused execution, disciplined capital allocation, and the consistent delivery of major milestones.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

Beginning in 2026, Kandi is entering new phase of growth. Our strategy will be anchored around two core engines.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

Our first engine is the off-road electric vehicle business, centered on the North American market and spanning UTVs, golf carts, electric off-road products, and others. This business represents Kandi's core franchise, underpinning stable cash flows, and a well-established go-to-market distribution network. In the first quarter this year, the overall core business remained stable with continued progress in distribution channel expansion. Our dealer network continued to scale with a notable improvement in per-dealer sales performance, further broadening our market coverage and the brand presence in key markets and laying a solid foundation for full-year growth. In addition, as we enter 2026, we are actively advancing our North American UTV business across four dimensions. Next-generation model development, enhanced product experience, improved channel efficiency, and strengthened supply chain capabilities.

[Translator]

We have set internal sales targets meaningfully above historical levels and have engaged a external automotive design team with proven mass production experience to help design our next-generation UTV products. Our ambition goes beyond simply selling more units. We are focused on boosting Kandi's product competitiveness across the North American outdoor recreation and low-carbon mobility markets.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

In December 2025, we signed a agreement to acquire Rawrr, a premium U.S.-based electric off-road vehicle motorcycle brand. With Rawrr now part of the Kandi family, our goal is to establish premier electric off-road motorcycles as a meaningful new growth category within our North American product portfolio by 2026. We see strong synergies between Rawrr and Kandi's existing North American distribution network, supply chain, and product lineup. As we advance the integration, our primary priorities will be brand alignment, channel coordination, supply chain optimization, and product development, aiming to ensure this acquisition translates into meaningful, measurable revenue contribution rather than a transaction on paper.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

Our second engine comprises emerging battery swapping equipment and intelligent robotics business.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

Battery swapping equipment represents our most important breakthrough opportunity in 2026. In August 2025, our subsidiary China Battery Exchange was qualified as a battery swap equipment supplier within CATL's supply chain, securing its first order for heavy truck battery swap stations equipment. In January 2026, China Battery Exchange entered into a three-year strategic cooperation agreement with CATL's subsidiary, covering the mass production and delivery of heavy truck battery swap station equipment. Based on our current order visibility and production schedule, we are confident in achieving meaningful revenue growth in 2026.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

In our view, the battery swap equipment business represents more than an incremental revenue stream for Kandi. It demonstrates a remarkable extension of our footprint from low-carbon mobility products into the broader new energy infrastructure sector. Looking ahead, our priorities are centered on execution on heavy truck battery swap station order deliveries, ramping up our mass delivery capacity and capturing emerging commercial opportunities across ports, mining operations and long haul freight applications.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

On the intelligence robotics business front, our focus is on the deployment of autonomous quadruped robots in security, patrol and logistics parking environments. We have entered a strategic partnership agreement with HawkRobo Systems LLC to form a joint venture, KH Robotics, through which we are developing localized testing, validation and commercial operations capabilities in North America. We expect to complete the first functional demo by approximately June 2026, followed by field testing and initial pilot deployments in the second half of the year. This business remains at an early stage of deployment. Rather than providing near-term revenue guidance, we will evaluate and communicate progress through clearly defined product milestones and real-world use case validation.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

Regarding supply chain capabilities, we will continue to build out our global footprint anchored by core R&D and manufacturing in Mainland China with flexible capacity in Taiwan and local assembly and front-end distribution network in the United States. The architecture provides meaningful structural insulation against geopolitical uncertainty and trade volatility, while also enabling us to respond more quickly and effectively to evolving demands in the North American market.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

In sum, looking ahead to 2026, we are focused on four clear priorities. First, restoring sales momentum and advancing product upgrades across our UTV and low-carbon mobility lineup in North America. Second, successfully integrating Rawrr and translating the acquisition into tangible revenue contribution. Third, advancing the battery swap equipment business from initial order delivery to large-scale deliveries. Fourth, advancing our intelligent robotics business through the completion of functional demo, followed by field testing and initial pilot deployments.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

At the same time, we will maintain a disciplined approach to capital allocation. Our cash positions are not a justification for indiscriminate expansion, but rather a means to preserve flexibility in an uncertain environment. Any future investments in new business initiatives, acquisitions, or capacity expansion must be guided by long-term shareholder returns, and will be rigorously evaluated against clear benchmarks, including commercial progress, cash payback cycles, and risk-adjusted returns.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

Today, Kandi has a clear platform structure, a focused dual engine strategy, a resilient global supply chain, and a solid cash position. I firmly believe that with this core competencies and strategic positioning in place, we are well equipped to translate our vision of manufacturing joy, driving the future into tangible long-term value for shareholders.

[Feng Chen, CEO at Kandi Technologies]

[Non-English content]

[Translator]

Let me turn the call over to our CFO, Alan Lim, who will provide details on our full year 2025 financial performance. Thank you.

[Alan Lim, CFO at Kandi Technologies]

Thank you, Mr. Chen and Kewa. Thank you everyone for joining us today. I will go over our financial results for 2025. The net revenues were $87.4 million, a decrease of 31.5% from $127.6 million for 2024, primarily due to reduced demand for EV products in the PRC market and fewer sales of crossover golf carts and other vehicle models. Ongoing trade uncertainties, including the potential tariffs and trade restrictions, together with persistent inflation and elevated interest rates, adversely affected consumer demand for higher priced recreational vehicles, which in turn impacted sales to Kandi's major retail customers and distributors. The cost of goods sold was $50.1 million, a decrease of 43.2% from $88.3 million for 2024. The decrease was primarily due to the corresponding decrease in sales.

[Alan Lim, CFO at Kandi Technologies]

The gross profit was $37.3 million, compared with $39.3 million for 2024. Gross margin was 42.6%, up from 30.8% for 2024. The improvement in gross margin was primarily driven by increased sales of the previously impaired inventory. The total operating expenses were $91.5 million, a decrease of 12.6% from $108.1 million for 2024. The factors including the research and development expenses were $7.6 million, up 52.6% from $5.0 million for 2024, mainly due to the completion of research and development projects during the current period. Secondly, the selling and marketing expenses were $16.7 million, a decrease of 21.5% from $21.2 million for 2024.

[Alan Lim, CFO at Kandi Technologies]

The decrease was mainly due to the decreases in freight expenses and commission expenses in line with the decrease in revenue. The general and administrative expenses were for $54.4 million, a decrease of 5.7% from $57.7 million for 2024. The decrease was mainly due to the decreased depreciation and amortization in the current period, following the material impairment of long-term assets provision in 2024. The loss from operations was $57.2 million, compared with $68.8 million for 2024. The net loss for the current year was $95.6 million, compared with $51.0 million for 2024. The decrease in net loss was primarily attributed to the higher ad expenses resulting from the anti-dumping duty expenses and increased litigation costs compared to the prior year.

[Alan Lim, CFO at Kandi Technologies]

The basic and diluted net loss attributable to the company's shareholders to share was $1.12, compared with basic and diluted net loss per share of $0.59 for 2024. Turning to our balance sheets. Our financial position remains healthy and stable. As of December 31st, 2025, the company had cash and cash equivalents, the receiver cash and certificates of deposit totaling $211.9 million, compared with $126.3 million as of December 31st, 2024. That concludes my remarks. I will now hand the call back to Kewa for any final comments. Thank you.

[Kewa Luo, IR Director at Kandi Technologies]

Thank you once again for joining us today. If you have any further questions, please reach out using the contact information provided on our website. We appreciate your time and interest in Kandi Technologies. This concludes today's conference call. You may now disconnect.

Participants

Analysts

• Alan Lim, CFO at Kandi Technologies
• Feng Chen, CEO at Kandi Technologies
• Kewa Luo, IR Director at Kandi Technologies
• Translator