SOURCE: Kandi Technologies, Corp.

September 24, 2007 10:30 ET

Kandi Reports Strong Second Quarter Performance Led by Go-Kart Beach Vehicle Sales

JINHUA, ZHEJIANG PROVINCE, CHINA--(Marketwire - September 24, 2007) - Kandi Technologies, Corp (OTCBB: KNDIE), an emerging PRC-based leader in small vehicle production, with approximately 15% of the world Go-Kart market, today announced results for its second quarter and first half ended June 30, 2007.

The Company reported that revenues in the second quarter of 2007 climbed approximately 290% to $11,155,508, compared with $2,859,686 in the same period last year. The Company's net income also grew, from a loss of $83,659 in the second quarter of 2006, to $1,907,050 in the 2007 second quarter, an increase of approximately 2,280%. According to the Company, the increase in revenues in the period, combined with a reduction in cost of sales, generated an approximately 1,033% increase in gross profit, which rose to $2,709,646 compared with $239,196 in the second quarter of 2006.

For the first half of 2007, the Company said revenues increased approximately 261% to $17,148,966 compared to $4,756,821 in the first six months of 2006, while net income in the 2007 first half rose approximately 3,308% to $2,845,636 compared to a loss of $88,694 in the first six months of 2006. Gross profit in the first six months of 2007 rose approximately 714% to $3,856,524, compared with $473,620 in the first half of 2006, as cost of sales declined primarily due to lower raw material costs and improved cost controls, while revenues increased.

The Company also reported that as of June 30, 2007, it had 19,961,000 shares issued and outstanding.

Go-Kart Vehicles Well Received By Consumers

Mr. Hu Xiaoming, president and chief executive officer of Kandi, commented, "We're very pleased to be able to report such a strong performance following up on our introduction to the US stock market. In this period, we benefited in particular from increased sales of our Go-Kart, a beach vehicle developed and introduced by the Company in 2006, which has received high marks from consumers because of its low cost, good performance and proven reliability."

Mr. Xiaoming added, "In the period, we also pushed hard to ship orders in June that were originally scheduled for the third quarter, ahead of the reduction in the export tax rebate from 17% to 9% beginning on July 1, 2007."

"Looking ahead," Mr. Xiaoming stated, "we remain focused on pursuing our goal of doubling our 15% market share in Go-Karts and seeking to obtain the biggest market share in China for this product through continuing technical and quality improvement and a larger and stronger sales force. We also will continue our focus on mini-sized special purpose vehicles and the developing market we envision for super mini casual cars."

About the Company

Kandi (formerly Stone Mountain Resources, Inc) is a PRC-based vehicle machinery producer, concentrating on three areas of small vehicle production: Go-Karts, Special Purpose Vehicles and Casual Purpose Vehicles. At present, it is among the leading producers of Go-Karts in the world, with an estimated 15% share of market and a goal of doubling this share, in large part by becoming the leading producer of this increasingly popular recreational product in China. Focusing on the country's rapid economic development, Kandi also sees an increasing need for transportation vehicles for specific purposes, in particular mini-size pesticide spraying vehicles and mini-service vehicles. The Company also is focused on the development of fashionable, energy saving mini-cars. It has produced mini-cars that have completed the trial stage and is now preparing to start mass production. It expects to begin to export these cars to the American market, followed by sales in China when the domestic market is more mature. Kandi shares were recently listed on the US OTCBB market with the symbol KNDIE.OB. It is anticipated that the "e" will be removed from the symbol in the next few days and the Company will trade under the symbol KNDI.OB.

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the Securities and Exchange Commission.

Contact Information

  • Contacts:

    Kandi Technologies, Corp
    Hu Xiaoming
    President and CEO
    (86-0579) 82239700

    US Investors
    Tel 212-425-5700
    Fax 212-425-6951