Kandi Technologies Group, Inc. Q2 FY2024 earnings call

• Strong growth trajectory with total revenue up 8.9% year-over-year.
• U.S. market expansion with new product lines and launch of officially licensed NFL team golf carts in partnership with Lowe’s starting end of August.
• Financial position remains strong with cash and cash equivalents, restricted cash, short-term investments, and certificates of deposit totaling $219.6 million as of June 30, 2024.
• Actively executing share repurchase program, buying back $673,896 shares at an average price of $2.25 per share.
• Secured EEC certification for 10-K all-electric UTV, paving way for EU market entry; expanded into new markets in Asia.
• Focused on expanding product portfolio and market presence, particularly in U.S. and European markets.

Kandi Technologies achieved total revenue of $39.1 million in the second quarter of 2024, up 8.9% from $36 million in the same period of 2023. The primary growth driver was all-electric off-road vehicles and associated parts, which had sales revenue of $34.7 million, accounting for approximately 88.7% of total revenue.

• Remain focused on expanding product portfolio and market presence, particularly in U.S. and European markets.
• Drive future growth through continued product innovation and market expansion.

• Forward-looking statements involve inherent risks and uncertainties; actual results may differ materially from expectations.
• Further information regarding risks and uncertainties is in the Company’s public filings with the SEC.

Q: Regarding new products, including starter batteries, all-electric off-road vehicles, electric water sports products, and branded lithium batteries. Also about specific models like Innovator e10K and Lucky 9.

A: Starter battery is for vehicle starting, R&D in early stage; global automotive starter battery market expected to grow. New products like Innovator e10K and Lucky 9 are in development. AA batteries launched to test U.S. market feasibility, compatible with other chargers.

Q: About spin-off of Kandi America, NASDAQ requirements, and manufacturing agreement with Hartford in Taiwan.

A: Considering potential spin-off of Kandi America, but SEC regulations restrict detailed discussion. Collaboration with Taiwan is strategic to enhance supply chain.

Q: About Lowe’s deal, specifically the number of NFL licensed UTVs or golf carts and market acceptance.

A: In regular discussions with Lowe’s about market and inventory, but no specific hard number yet; plan is a three-year deal with NFL licensed golf carts available on Lowe’s.

Q: About manufacturing facilities in U.S., percentage of product made by Kandi, and website updates.

A: Considering production lines in U.S. in future. Kandi manufactures over 90% of typical vehicle components. Working on updating websites and improving accessibility for investors.

Q: About international outlets and expansion, including Southeast Asia, Europe, etc.

A: Exploring European and Southeast Asia markets, working in more than a dozen countries; in U.S. work with large chains, in Europe work with distributors.

Q: About Lowe’s relationship, including NFL products, golf cart compatibility, and future plans.

A: In regular discussions with Lowe’s, NFL agreement is a three-year plan; current NFL products available on Lowes.com, exploring future expansions based on market and real estate availability.