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Kandi Technologies Group Inc. (KNDI) reported its second-quarter earnings for 2025, showcasing a decline in revenue but an improvement in gross margin. The company’s stock saw a notable increase of 11.72% in the post-market session, closing at $1.43, with a slight uptick of 1.4% in the premarket. According to InvestingPro data, the stock is currently trading at its Fair Value, following strong returns of over 19% year-to-date. Despite the drop in net revenues to $36.3 million, down from $59.8 million in the same quarter last year, the company highlighted strategic advancements and a robust cash position.
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Key Takeaways
- Kandi’s Q2 2025 revenue fell by 39.3% year-over-year.
- Gross margin improved significantly to 45.2%, up from 31.7%.
- The company is expanding its dealer network and focusing on strategic transformation.
- Stock price rose by 11.72% following the earnings announcement.
Company Performance
Kandi Technologies reported a challenging second quarter with net revenues decreasing to $36.3 million, a 39.3% decline from the previous year. Despite this, the company improved its gross margin to 45.2%, significantly above the trailing twelve-month margin of 30.78%. The net income stood at $1.7 million, down from $2.4 million last year, reflecting the tough market conditions. InvestingPro analysis shows the company operates with a moderate debt level, with a debt-to-equity ratio of 0.13, while maintaining a healthy current ratio of 2.95.
Financial Highlights
- Revenue: $36.3 million, down from $59.8 million in 2024
- Earnings per share: $0.02, decreased from $0.03 in 2024
- Gross Profit: $16.4 million, compared to $19 million in 2024
- Cash Position: $257 million as of June 30, 2025, up from $126.3 million at the end of 2024. However, InvestingPro data indicates the company has been quickly burning through cash, with negative free cash flow yield of -15% in the last twelve months.
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Outlook & Guidance
Kandi Technologies is focusing on a dual-engine strategy aimed at stable cash flow and growth in new markets. The company is expanding its presence in the off-road vehicle sector and intelligent equipment markets. Future product launches are planned for mid-next year, alongside a strategic push into high-margin direct-to-consumer channels.
Executive Commentary
CEO Feng Chen emphasized the company’s resilience and growth potential, stating, "We demonstrated resilience and a strong capacity for sustained growth amid external challenges." He also highlighted the strength of Kandi’s balance sheet, noting, "Our balance sheet remains exceptionally strong." Chen expressed confidence in the company’s strategy, saying, "We are confident in our dual engine strategy."
Risks and Challenges
- Uncertain global microeconomic conditions could impact demand and financial performance.
- The competitive landscape in the intelligent equipment and new energy markets remains intense.
- Execution risks related to new product launches and market expansions.
- Potential fluctuations in raw material costs affecting profitability.
Kandi Technologies is navigating a challenging environment with strategic initiatives aimed at long-term growth. Despite the revenue decline, the market responded positively to the company’s improved margins and strategic direction, as reflected in the stock’s post-earnings surge. Trading at a price-to-book ratio of just 0.36, the stock presents an interesting value proposition, though investors should note the company’s negative return on equity of -13% over the last twelve months.
For a complete analysis of KNDI’s investment potential, including detailed financial health scores and Fair Value estimates, explore InvestingPro’s comprehensive research tools and expert insights.
Full transcript - Kandi Technologies Group Inc (KNDI) Q2 2025:
Conference Operator: Hello, ladies and gentlemen. Thank you for standing by for Kandi Technologies Incorporated Earnings Conference Call for the 2025. At this time, all participants are in a listen only mode. Today’s conference is being recorded. I will now turn the call over to your host, Ms.
Kiwa Luo, the IR Director of the company. Please go ahead.
Kiwa Luo, IR Director, Kandi Technologies: Hello, everyone, and welcome to Tandy Technologies’ earnings conference call for the 2025. 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 e mail alerts by visiting the Investor Relations section of our website at ir.candigroup.com. Joining us today are Ms.
Feng Chen, Chief Executive Officer and Ms. Allen Lin, 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. 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 U.
S. Dollars. I will now turn the call over to our CEO, Mr. Feng Chen, who will deliver his remarks in Chinese followed immediately by an English translation. Mr.
Tan, please go ahead. Good day, investors and analysts. Welcome to Kandi Technologies earnings conference call for the 2025. We sincerely appreciate your taking the time to join us as we review the company’s first half performance. In the 2025, the global microeconomic landscape remained clouded by considerable uncertainty, creating real headwinds for our business.
Nevertheless, thanks to our agility and strategic foresight, we made substantial progress on several key initiatives while enhancing our traditional off road vehicle operations. We also leveraged our core strengths to expand into the emerging fields of embodied intelligence and new energy infrastructure. Through the confirmation of several pivotal partnerships, we steadily advanced our transformation from a conventional manufacturing enterprise into a holding platform with intelligent equipment manufacturing at its core. This transformation initiative not only speaks to our resilience in a challenging environment, but also reaffirms our confidence in delivering sustainable growth over the long term. I will begin with an update on the latest developments in our core business.
Following adjustments and upgrades made in the first half of the year, we have entered a new phase of refined operations with the goal of delivering steady high quality growth. Through more efficient resource allocation, inventory optimization and disciplined cost control, we are gradually improving our profitability and strengthening our cash flow management. Let’s look more closely at its business operations from three key aspects. In product sales, our focus on inventory management within retail channels drove a notable improvement in gross margin to 45.2% for the 2025, up 13.5 percentage points from 31.7% in the same period of 2024. This reflects the effectiveness of our refined operations and cost control initiatives.
Meanwhile, by optimizing our internal production structure and streamlining assembly line processes, we have enhanced manufacturing efficiency and shortened delivery cycles, further strengthening product delivery reliability. Second, on the sales channel front, we are creating a more balanced and strategic distribution layout to enhance both our market penetration and service capabilities. To that end, we have reinforced key partnerships with major retailers, including Lowe’s, while further expanding our dealer network. Our products are now carried in a 50 retail outlets with our dealer network demonstrating steady growth. Thanks to the concerted efforts of our new sales team, the dealer to retail sales mix has improved from one to nine previously to two to eight as of the June, reflecting a more diversified and resilient channel structure.
Beyond our traditional sales channels, we are actively exploring high margin direct to consumer channels, e commerce platforms and major distributor networks, while evaluating and optimizing the long term profitability of our key account partnerships. We aim to achieve optimal balance among brand visibility, market share and profitability. Finally, we have proactively accelerated the design and development of several new products. The design schematics are finalized and we anticipate launching these products by the middle of next year. Their introduction will provide new growth momentum, broaden our product portfolio and further enhance our market competitiveness.
Moving on to our emerging business segments, supported by key market insights, we maintain an innovation driven approach to these segments with particular emphasis on intelligent equipment and new energy infrastructure. Let me walk you through our latest initiatives in those two fields. In the first half of this year, we embarked on a deep collaboration with Deep Robotics, a leading Chinese innovator in embodied intelligence to jointly develop intelligent golf equipment and quadrupeds robots for security inspections, Leveraging our independently developed cloud edge terminal intelligence computing system, these emerging smart devices are designed to precisely meet diverse market needs, unlocking substantial growth potential for our intelligent equipment business. In the new energy infrastructure sector, battery swapping technology remains a key strategic cornerstone for us. Kandi has been advancing the adoption and application of this technology for over a decade, establishing ourselves as an industry pioneer.
Through our subsidiary, China Battery Exchange, the Jian Technology Company Limited, we have become a supplier of heavy truck battery swapping station equipment to CATL, the global leader in power batteries and have successfully secured our first order to support the rollout of its ambitious 10,000 stations plan. This collaboration not only strengthens our technological leadership, but also positions us to generate substantial revenue. Before I conclude, a brief look at our financial position. As of 06/30/2025, the company held $257,000,000 in cash, cash equivalents, restricted cash and certificates of deposit. Our balance sheet remains exceptionally strong providing ample liquidity to support both our strategic growth initiatives and ongoing business expansions.
In summary, Kandi demonstrated resilience and a strong capacity for sustained growth amid external challenges and internal transformation during the 2025. Despite some short term volatility, we believe our disciplined focus on optimized operations, strategic recalibration and technological innovation has positioned the company for long term development. Looking ahead, we are confident in our dual engine strategy, balancing stable cash flow businesses with growth incubation businesses, Through disciplined execution and continuous innovation, we will strengthen our position in the off road vehicle sector while strategically expanding into intelligent equipment and new energy markets. Maintaining our competitive edge and creating long term value for our shareholders and investors. Now, let me turn the call over to our CFO, Allen Lin, who will provide details on our financial performance.
Thank you.
Allen Lin, Chief Financial Officer, Kandi Technologies: Thank you, Mr. Chen and Kewa. And thank you everyone for joining us today. I will go over our unaudited financial results for the 2025. The net revenues were $36,300,000 down 39.3% from $59,800,000 for the same period of 2024, primarily reflecting the lower sales of auto vehicles and EV products.
The cost of goods sold was $19,900,000 a decrease of 51.3% from $40,900,000 for the same period of 2024. The decrease was primarily due to the corresponding decrease in sales. The gross profit was $16,400,000 compared with $19,000,000 for the same period of 2024. The gross margin improved significantly to 45.2%, up from 31.7% last year, driven by more favorable product mix and regional revenue distribution as well as increased sales of previously impaired inventory. The total operating expenses were 18,300,000.0 a decrease of 21.4% from $23,300,000 for the same period of 2024.
Regarding the breakdown for expenses, research and development expenses were 2,500,000.0 up 48.5% from $1,700,000 for the same period of 2024, mainly due to a battery product R and D project launched in the 2025. The selling and marketing expenses were $4,500,000 down 45.8% from $7,000,000 for the same period of 2024. The decrease was comparable with the scale of decrease in revenue. The general and administrative expenses were $11,300,000 down 22.6% from 14,600,000.0 for the same period of 2024. The decrease was mainly due to a lower depreciation resulting from the long lived asset impairment recorded at the 2024 and reduced stock based compensation expenses compared with the prior year period.
The net income was $1,700,000 compared with $2,400,000 for the same period of 2024. The basic and diluted net income attributable to the company’s stockholders per share were $0.02 compared with $0.03 for the same period of 2024. Turning to our balance sheet. Our financial position remains strong. As of 06/30/2025, the company had cash and cash equivalents, the restricted cash and certificates of deposit totaling $256,700,000 compared with $126,300,000 as of 12/31/2024.
That concludes our remarks. I will now hand the call back to Kewa for any final comments. Thank you.
Kiwa Luo, IR Director, 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.
Conference Operator: Thank you. This concludes today’s call. Have a wonderful afternoon. You may now disconnect your lines.
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