KNDI

• 2025 was a pivotal year for Candy with improved gross margin, stronger cash flow profile, and healthier balance sheet.
• From 2026, strategy is anchored around two core engines: first engine is off-road electric vehicle business centered on North American market including UTV, golf carts, electric off-road products; second engine is emerging battery swapping equipment and intelligent robotics business.
• In January 2026, China Battery Exchange entered into a three-year strategic cooperation agreement with CATL subsidiary for mass production and delivery of heavy truck battery swap station equipment.
• Focus in 2026 includes restoring sales momentum and advancing product upgrades for North American UTV and low carbon mobility lineup, successfully integrating RAW and translating into tangible revenue contribution, advancing battery swap equipment business from initial order delivery to large scale deliveries, and advancing intelligent robotics business through completion of functional demo and subsequent field testing and initial pilot deployment.

• 2026 will focus on restoring sales momentum and advancing product upgrades for North American UTV and low carbon mobility lineup.
• Ensure successful integration of RAW and translate acquisition into tangible revenue contribution.
• Advance battery swap equipment business from initial order delivery to large scale deliveries.
• Advance intelligent robotics business with completion of functional demo in June 2026 followed by field testing and initial pilot deployment in the second half of the year.

In 2025, net revenues were $87.4 million, a decrease of 31.5% from $127.6 million in 2024, mainly due to reduced demand for EV products in the PLC market and fewer sales of crossover golf carts and other vehicle models. The cost of goods sold was $50.1 million, a decrease of 43.2% from $88.3 million in 2024. Gross profit was $37.3 million, compared with $39.3 million in 2024. Gross margin improved to 42.6% from 30.8% in 2024. Total operating expenses were $91.5 million, a decrease of 12.6% from $108.1 million in 2024. Loss from operations was $57.2 million compared with $68.8 million in 2024. Net loss for the year was $95.6 million compared with $51.0 million in 2024. As of December 31, 2025, cash and cash equivalents, residual cash, and certificates of deposit totaled $211.9 million.

• Complex external market environments, geopolitical changes, trade policy changes, and middle-end demand fluctuations.
• Ongoing trade uncertainties including potential tariffs and trade restrictions, together with persistent inflation and elevated interest rates adversely affecting consumer demand for higher-priced recreational vehicles, impacting sales to major retail customers and distributors.