Kandi Technologies Group Q2 2026 Earnings Report

Kandi Technologies Group EPS Results

• Actual EPS: $0.05
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Kandi Technologies Group Revenue Results

• Actual Revenue: $28.56 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Kandi Technologies Group Announcement Details

• Quarter: Q2 2026
• Date: 9/28/2026
• Time: Before Market Opens
• Conference Call Date: Monday, September 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 Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Strong first-half financial improvement: Revenue rose 57.4% year over year to $57.1 million, operating income returned to $5.5 million from a $1.9 million loss, and net income increased 452.2% to $9.4 million. Cash, restricted cash and certificates of deposit totaled $285.7 million at June 30.
• Positive Sentiment: Core off-road vehicle momentum remained robust. North American off-road vehicle revenue increased 59.4% to $54.2 million, while average monthly U.S. dealer sales doubled year over year; management plans to expand the dealer network and complete the transition to an all-new Kandi lineup in the fourth quarter.
• Positive Sentiment: Battery-swapping equipment is moving into commercial production. The company reported batch orders from CATL’s QIJI Energy subsidiary and expects meaningful second-half revenue, while Xinchu New Energy is pursuing overseas AI data-center backup-power and energy-storage orders after becoming a Schneider Electric solutions reseller.
• Neutral Sentiment: Future growth depends on execution and emerging businesses. Rawrr is being integrated across Kandi’s R&D, manufacturing and dealer resources with new products planned for 2027, but the robotics operation remains in early-stage R&D and the company still faces intense price competition in electric off-road motorcycles and ongoing inventory transitions.

Presentation

[Operator]

Greetings and welcome to Kandi Technologies Group Inc.'s First Half 2026 Financial Results Conference Call. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kewa Luo, Investor Relations. Thank you. Please go ahead.

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

Thank you. Hello, everyone, and welcome to Kandi Technologies Group Inc.'s First Half 2026 Earnings Conference Call. As a reminder, today's call is being recorded. The company's financial and operational highlights were issued in a press release earlier today and are 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 U.S. 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, Director of Investor Relations at Kandi Technologies Group]

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 USD. 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. Good day, investors and analysts. Welcome to Kandi Technologies' earnings conference call for the first half of 2026. Thank you for your continued interest and support of the company. The first half of 2026 marked a new phase in Kandi's strategic transformation as our new business initiatives began to deliver tangible results.

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

Our battery-swapping business, in particular, is gaining commercial traction, showing that our earlier investment and development efforts are paying off. It is now poised to become an important growth driver. Growth momentum as our core business also strengthened significantly, driving robust gains in both our top and bottom lines. Meanwhile, we continue to build out our off-road vehicle dealer network, refine our retail partnership model, and refresh and upgrade our product line-up. This financial and operational progress demonstrates that our strategy is driving improvements in operating performance and business fundamentals, reinforcing our confidence in our next phase of growth. Our first half revenue grew 57.4% year-over-year to $57.1 million. Revenue from our core off-road electric vehicle business increased 59.4% to $54.2 million, including $6.1 million from Rawrr, the electric off-road motorcycle brand we acquired in February 2026.

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

Higher revenue and gross profit, combined with relatively stable operating expenses, drove a return to operating profitability and a a significant improvement in earnings. Net income rose 452.2% year-over-year to $9.4 million. As of June 30, our cash and cash equivalents, restricted cash and certificates of deposit totaled $285.7 million, providing a solid financial foundation to support future growth.

[Feng Chen, CEO at Kandi Technologies Group]

在2025年业绩电话会上，我曾介绍过康迪的双引擎战略，以北美非公路电动车业务巩固基本盘，并围绕能源与智能装备领域培育新的增长来源。沿着这一方向，我们在持续推进能源换电装备和智能机器人业务的同时，通过战略控股杏储新能源，将能源业务进一步拓展至AI数据中心储能领域。我们将持续提升核心业务的产品竞争力和渠道效率，并根据各项新业务的发展阶段推进商业化，逐步形成更多元的收入来源和增长动力。

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

On our full-year 2025 earnings call, I outlined Kandi's dual engine strategy, strengthening our core North American off-road electric vehicle businesses while cultivating new growth drivers in energy and intelligent equipment. On the new driver side, we are advancing our battery swapping equipment and intelligent robotics business, and we broadened our energy solutions for AI data centers by acquiring a controlling stake in Xinchu New Energy. Going forward, we will continue to improve product competitiveness and sales channel efficiency in our core business while tailoring our commercialization efforts for new business to each one stage of development. Over time, this will diversify our revenue base and growth drivers.

[Feng Chen, CEO at Kandi Technologies Group]

接下来，我将向大家介绍各项业务在上半年及近期取得的进展，以及下一阶段的工作重点。

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

Next, I would like to share more details on our first half progress and recent developments across each business, as well as our priorities going forward.

[Feng Chen, CEO at Kandi Technologies Group]

在新业务方面，能源换电装备业务的商业化取得了实质性进展，目前已进入规模化生产阶段。今年7月，我们旗下中换电获得宁德时代重卡换电站设备批量采购订单，仅两个月后，中换电又新签了一个批量重卡换电订单。订单的持续落地，表明前期技术积累与战略合作正在逐步转化为商业成果，也为后续生产交付奠定了坚实基础。我们预计这项业务将在今年下半年贡献可观规模的收入，逐步成为公司新的增长来源。

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

Let me begin with our new business initiatives. We have made tangible progress in commercializing our battery swapping equipment and are now in volume production. In July, our subsidiary, China Battery Exchange, secured its first batch order from CATL's QIJI Energy subsidiary for heavy-duty truck battery swapping station equipment. Just two months later, it received another batch order. These orders demonstrate that our investments in technology and strategic partnerships are beginning to pay off, while also providing visibility for planning, production and deliveries. We expect this business to begin generating meaningful revenue in the second half of this year, emerging as a new growth driver for Kandi.

[Feng Chen, CEO at Kandi Technologies Group]

对康迪而言，换电装备业务是将技术和制造能力延伸至新能源基础设施领域的重要一步。下一阶段，我们将以订单交付为重点，提升产品质量和交付效率，并同步完善售后服务能力。我们的目标是通过可靠的项目执行，巩固客户合作，争取后续订单，在积累交付经验的同时，提升规模化生产能力，推动换电装备业务形成持续的增长动能。

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

Our entry into the battery swapping equipment business marks an important step in extending Kandi's technology and manufacturing expertise to new energy infrastructure. Looking ahead, our priorities are to fulfill customer orders, improve product quality and delivery efficiency, and strengthen our after-sales service capabilities. We aim to deepen customer relationships and secure follow-on orders by constantly meeting our project commitments. As we accumulate product delivery experience and scale manufacturing capacity, we will be better positioned to drive sustained growth in this business.

[Feng Chen, CEO at Kandi Technologies Group]

在智能机器人方向，我们保持持续的投入，聚焦四足机器人在安防巡检和物流园区等场景中的应用。这项业务仍处于早期研发阶段。现阶段我们会围绕实际的客户需求、产品适配和场景验证推进工作，并据此评估后续投入。

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

In intelligent robotics, we continue to invest in autonomous quadruped robots, focusing on security patrols, inspections, and applications in logistics parks. This business remains in an early R&D stage. Our work is currently centered on aligning development with customer needs, tailoring products to specific use cases, and validating their performance in real-world settings. Progress in these areas will guide our decisions on further investment.

[Feng Chen, CEO at Kandi Technologies Group]

与此同时，我们今年战略控股的信储新能源正积极拓展AIDC备用电源及储能业务。今年7月，信储获得施耐德电气解决方案经销商授权，依托施耐德电气成熟的UPS及数据中心基础设施产品体系，结合信储在储能电池和电池管理系统BMS方面的技术积累，我们可为数据中心客户提供覆盖备用电源和储能应用的一站式解决方案。目前相关新产品和技术服务正陆续推向市场，并已开始获得海外订单，预计今年可贡献可观收入。随着AI算力基础设施持续发展，我们将围绕高可靠备用电源及储能需求，完善整体解决方案能力，推进客户开发和订单转化，逐步培育集团新的收入来源。

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

Additionally, Xinchu New Energy, in which we acquired a controlling stake in the third quarter of this year, is expanding its AI data center backup power and energy storage business. In July, Xinchu became an authorized solutions reseller of Schneider Electric. By combining Schneider Electric's established UPS and data center infrastructure products with Xinchu's expertise in energy storage batteries and battery management systems, we can offer data center customers integrated backup power and energy storage solutions. Xinchu is rolling out new products and technical services and has already begun winning orders overseas. We expect the business to make meaningful revenue contribution this year. As AI computing infrastructure continue to expand globally, we will build out our integrated solutions to meet demand for highly reliable backup power and energy storage, cultivate customer relationships and drive order conversion, further developing this new revenue stream.

[Feng Chen, CEO at Kandi Technologies Group]

好。主营业务方面，仍然是以北美市场为核心的非公路电动车业务，涵盖UTV、高尔夫球车和电动越野产品等。上半年美国业务的经销商月均销量较去年同期实现翻倍，展现出核心业务强劲的销售动能。增长既来自现有经销商资源的进一步激活，也来自新经销商的拓展。下一阶段，我们将深化与现有经销商的合作，拓展优质经销商，并结合新品导入，进一步提升渠道覆盖和销售效能。

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

Turning to our core business, that is the North American off-road electric vehicle market, with a portfolio spanning UTVs, golf carts, and other electric off-road products. In the first half, average monthly sales through our U.S. dealer network doubled year-over-year, reflecting strong sales momentum. This growth was driven by greater contributions from existing dealers and the addition of new partners. Looking ahead, we will deepen collaboration with existing dealers, add high-quality new partners, and align these efforts with upcoming product launches to broaden our reach and improve sales performance.

[Feng Chen, CEO at Kandi Technologies Group]

产品方面，上半年我们继续清理滞销车型及全新车辆库存，预计在第四季度完成康迪品牌向全新产品线的切换。我们将推动库存优化新品导入与渠道升级紧密衔接，为经销商和零售伙伴提供更具竞争力的产品组合，为2027年核心业务增长提供重要支持。

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

On the product side, we continue to clear inventory of slow-selling models and old models in the first half. We expect to complete the transition to an all-new Kandi product lineup in the fourth quarter. We are closely coordinating inventory optimization, new product launches and sales channel upgrades to provide our dealers and retail partners with a more competitive product mix and help drive core business growth in 2027.

[Feng Chen, CEO at Kandi Technologies Group]

Rawrr 已为公司带来实际收入贡献，收购后的整合也在持续深化。面对电动越野摩托车市场激烈的价格竞争，我们坚持高端品牌化的发展方向，以产品性能、用户体验和品牌价值建立差异化优势，推动这一业务实现可持续增长。

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

Rawrr is already contributing to our revenue, and we continue to deepen its post-acquisition integration with the group. Amid intense price competition in the electric off-road motorcycle market, we are preserving Rawrr's premier brand positioning, focusing on product performance, rider experience and brand equity to differentiate the business and support sustainable growth.

[Feng Chen, CEO at Kandi Technologies Group]

我们将集团的研发、制造和供应链能力与Rawrr的品牌及渠道资源相结合，围绕美国市场需求，提高产品开发效率，并通过丰富产品供给、优化渠道协同，进一步释放Rawrr现有的300余家合作经销商网络的销售潜力。上半年，Rawrr持续充实团队，完善运营体系，并通过专业赛事、行业展会和社交媒体加强品牌建设，同时积极推进全系列新品研发，计划于2027年推向市场。今年我们将重点做好库存迭代、新品筹备和渠道优化。随着整合协同逐步呈现，我们有信心将产品和渠道优势转化为更大的收入贡献，使Rawrr成为北美业务更有力的增长支撑。

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

We are integrating Kandi Group's R&D, manufacturing and supply chain capabilities with Rawrr's brand assets and distribution networks to develop products and respond to U.S. market demand more efficiently. We are also broadening Rawrr's product offering and strengthening channel coordination to drive sales growth across its existing network of more than 300 dealer partners. In the first half, Rawrr continued to expand its team and refine its operating system while building brand equity through professional racing events, trade shows and social media campaigns. Rawrr is also advancing development of an all-new product lineup with launches planned for 2027. This year, we are concentrating on managing the inventory transition, preparing for new launches, and optimizing our sales channels. As the benefits of integration materialize, we are confident we can convert these product and channel strengths into revenue increases and make Rawrr a stronger growth driver for our North American business.

[Feng Chen, CEO at Kandi Technologies Group]

今年下半年我们会重点推进四项工作。第一，推进换电装备订单规模化交付，并推动杏楚新能源拓展海外订单。第二，延续北美非公路电动车业务的销售动能，推进渠道调整和康迪品牌产品阵更新。第三，做好Rawrr的团队、供应链和渠道建设，为2027年新品上市做好准备。第四，围绕实际应用场景继续研发智能机器人相关场景化应用。

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

In short, we have four priorities for the second half of this year. First, scale battery swapping equipment deliveries and support Xinchu New Energy in winning additional overseas orders. Second, sustain sales momentum in our North American off-road electric vehicle business while refining our sales channels and refreshing the Kandi product lineup. Third, strengthen Rawrr's team, supply chain and distribution network in preparation for its new product launches in 2027. Fourth, continue developing intelligent robotics solutions tailored to real-world applications.

[Feng Chen, CEO at Kandi Technologies Group]

我们对2027年的增长前景充满信心。随着康迪品牌产品组合迭代升级、Rawrr新品上市以及新业务逐步形成收入贡献，我们预计公司将迎来更有力的业绩增长。同时，我们将坚持审慎的资本配置原则，综合评估新业务投入、并购和产能建设的商业化进展、现金回收周期及风险收益，使投入节奏与实际业务需求相匹配，提升资金使用效率。

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

We remain confident about our outlook for 2027. We expect a significant upgrade to Kandi's product portfolio, new product launches, and revenue contributions from our emerging businesses to drive stronger growth. At the same time, we will maintain a disciplined approach to capital allocation, evaluating investments in new businesses, acquisitions, and capacity expansion based on commercial progress, expected payback periods, and associated risks and returns, and aligning the pace of investment with business needs to optimize capital efficiency.

[Feng Chen, CEO at Kandi Technologies Group]

我和管理团队将全力推动各项经营计划的落地，把核心业务的增长动能和新业务的发展机会逐步转化为可持续的业绩增长，为股东创造长期价值。

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

The management team and I are fully committed to strategic execution, converting the momentum in our core business and opportunities across our new business into sustainable growth and long-term value for our shareholders.

[Feng Chen, CEO at Kandi Technologies Group]

接下来我把时间交给我们的首席财务官Alan Lim，为大家详细介绍公司2026年上半年的业绩表现。谢谢大家。

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

Now, let me turn the call over to our CFO, Alan Lim, who will provide details on our first half 2026 financial performance. Thank you.

[Alan Lim, CFO at Kandi Technologies Group]

Thank you, Mr. Chen and Kehua. I'm Alan Lim, CFO of Kandi Technologies. Thanks everyone for joining us today. I will go over the financial results for the first half of 2026. Regarding the income statement, the net revenues were $57.1 million for the current period, up 57.4% from $36.3 million for the same period in 2025, mainly due to an increase of sales of off-road vehicles compared to the prior year end period, as well as the additional revenue contributed by our new acquired entity, Rawrr, a subsidiary the company acquired in February 2026. The cost of goods sold was $33.3 million in the current period, up 62.3% from $19.9 million for the same period of 2025. The increase was primarily due to the corresponding increase in sales.

[Alan Lim, CFO at Kandi Technologies Group]

The gross profit was $20.8 million in the current period, compared with $16.4 million for the same period of 2025. The gross margin was 43.4%. It was comparable to 45.2% for the same period of 2025. The total operating expenses were $19.3 million, up 5.3% from $18.3 million for the same period of 2025. There is a breakdown of different expenses. The R&D expenses were $2.4 million, a decrease of 3.5% from $2.5 million for the same period of 2025. Regarding the selling expenses, the total amount was $5.0 million, up 10% from $4.5 million for the same period of 2025. The increase reflected the higher sales activities. The G&A expenses were $11.9 million, up 5.4% from $11.3 million for the same period of 2025. The income from operations was $5.5 million in the current period, compared with the loss from operations of $1.9 million for the same period of 2025.

[Alan Lim, CFO at Kandi Technologies Group]

The net income increased 452.2% to $9.4 million from $1.7 million for the same period of 2025. The increase was primarily driven by the high net revenues and gross profit, while the operating expenses remain relatively stable and controllable. The base and diluted net income attributed to the company's shareholders per share were $0.10, compared with $0.02 for the same period of 2025. Turning to our balance sheet, our financial position remains strong. As of June 30th, 2026, the company had cash and cash equivalents that were cash and certificates of deposit totaling $285.7 million, compared with $211.9 million as of December 31st, 2025. The working capital was $189.5 million as of June 30th, 2026. That concludes my remarks. I will now hand the call back to Kehua for any final comments. Thank you, everyone.

[Kewa Luo, Director of Investor Relations at Kandi Technologies Group]

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

Executives

• Kewa Luo, Director of Investor Relations
• Feng Chen, CEO
• Alan Lim, CFO