Kandi Technologies, Corp., a Chinese manufacturer and developer of pure electric vehicles (EVs) and ATVs, reported financial results for the first quarter ended March 31.
During the quarter, the company continued to focus on building a leadership position in the emerging EV market in anticipation of what it believes will be a “breakthrough” year for the company. At the same time, it stayed focused on its traditional off-road vehicle (ORV) business, with the introduction of new lower priced ATV and go-kart models. The result was a sharp improvement in sales of these products that led to a 72 percent increase in first quarter revenues and a 121 percent increase in operating income compared with the first quarter of 2011.
For the three months ended March 31:
- Revenues grew 72 percent to $14.36 million from $8.34 million last year as year-over-year ATV sales grew 41 percent to $2 million, and go-kart sales grew approximately 95 percent to $9.6 million;
- ATV unit sales grew to 5,124 units in the quarter, up 216 percent from 1,620 units a year ago, while go-kart unit sales increased 142 percent year over year to 12,981 units up from 5,366 units in last year's first quarter;
- Operating income rose 121 percent to $1.81 million as gross profits grew approximately 62 percent to $3.3 million compared with $2.06 million in the first quarter of 2011;
- Super-mini car revenues grew nearly 15 percent to approximately $1.2 million, while unit sales grew approximately 42 percent to 296 vehicles, from 209 a year earlier, reflecting increased sales of EVs;
- Working capital surplus remained approximately $20 million year over year.
Commenting on the continued turnaround in ORV sales, Mr. Xiaoming Hu, chairman and CEO, said, "These were particularly pleasing results since our first quarter usually is slow due to the Chinese New Year Holiday and the pace of recovery in most economies has continued to be slow. The growth we achieved reflects the strength of our brand and our market leadership, which augurs well for future demand for our products."