Solid start to the year with net income of $0.8 million, up 27.6% year-over-year. Significant return of capital to shareholders via 564,302 shares repurchased. JINHUA, CHINA, May 16, 2024 — Kandi Technologies Group, Inc. (the “Company”, “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the first quarter of 2024.

First Quarter Highlights

Continued expansion of sales channels, with the Company’s products available in a greater number of large chains and distributors across the U.S. compared to 2023, laying a solid foundation for peak season sales.Total revenues of $20.7 million compared to $22.9 million in the same period of 2023.Net income was $0.8 million, or $0.01 per fully diluted share, representing a 27.6% increase from the net income of $0.6 million, or $0.01 per fully diluted share, for the same period in 2023.Robust balance sheet with 230.7 million in cash and equivalents, restricted cash, and certificate of deposit as of March 31, 2024. Working Capital was $264.0 million as of March 31, 2024.During the quarter, the Company repurchased 564,302 shares of its common stock.

Dr. Xueqin Dong, CEO of Kandi commented, “In light of our sales strategy adjustments, although there was slight fluctuation in sales and overall revenue in the first quarter, our expansion in the North American market has progressed smoothly through partnerships with large nationwide chains. We have also made progress in the Southeast Asian and European markets, preparing well for the peak sales season. We take pride in our stable balance sheet and sound financial condition. Furthermore, we repurchased 564,302 shares in the first quarter, demonstrating our confidence in the future development of the company.”

Dr. Dong continued, “We are actively enhancing our product portfolio. In the first quarter our rechargeable AA batteries hit the market. Moving forward, we will launch starter batteries as well as a variety of more competitive all-electric off-road vehicle products and electric water sports products. We believe these new offerings will significantly boost our sales. Concurrently, we will soon introduce our limited-edition golf cart collection. This exclusive series, developed in collaboration with the National Football League and Lowe’s, features branding for all 32 NFL teams. This strategy not only demonstrates our confidence in the company’s future growth but also our firm commitment to enhancing shareholder value. We trust that our shareholders will understand and support our strategy.”

Q1 2024 Key Financial Results

Net Revenues and Gross Profit (in USD millions) Q1 2024Q1 2023Y-o-Y%Net Revenues$20.7 $22.9 -9.6%Gross Profit$7.1 $8.0 -11.3%Gross Margin% 34.5% 35.1%-