-- Revenue ~$17 million --

Working Capital of ~$289 million, cash¹ balance $211 million --

-- Sales into e-Scooter-related markets surge nearly 600% --

JINHUA, China, Nov. 09, 2021 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the "Company," "we" or "Kandi") (NASDAQ GS: KNDI), today announced financial results for the third quarter of 2021.

Third Quarter Highlights

Total revenues decreased by 10.3% to $16.8 million, from $18.7 million in the same period of 2020.
EV parts sales were $3.2 million, compared to $8.4 million in the same period of 2020.
Off-road vehicles sales were $6.8 million, compared to $8.9 million in the same period of 2020.
Electric Scooters, Electric Self-Balancing Scooters and associated parts sales were $6.3 million, compared to $0.9 million in the same period of 2020.
Battery exchange equipment and battery exchange service sales were $0.2 million. This new business had no revenue in the same period of 2020.
Gross margin was 16.4%, compared to 20.9% for the same period of 2020.
Net loss was $7.9 million, or ($0.10) per fully diluted share due to decreased sales and increased investment in R&D, compared to net loss of $1.5 million, or ($0.03) per fully diluted share for the same period of 2020.
As of September 30, 2021, working capital was $289.4 million. Cash, cash equivalents, restricted cash, and a certificate of deposit totaled $211.0 million.

________________________

¹ Includes cash, cash equivalents, restricted cash, and certificate of deposit.

Hu Xiaoming, Chairman and CEO of Kandi commented: "Sales are surging in the segment of e-Scooters, electric self-balancing scooters and associated parts sales. With explosive growth again this quarter, we are increasingly confident that our traction in this market can continue. Our strategic entry into this market last year represents a great success in identifying and developing intelligent transportation products to counteract the impact to EV market demand caused by the COVID-19 outbreak in 2020. We expect the EV-related business recovery to take time. Our restructuring of this business segment resulted in lower sales of EV products and parts."

Hu continued, "Compared to the second quarter, our sales mix had a couple of notable shifts. Within EV parts, battery pack sales were impacted by supply chain constraints hitting the whole industry. Meanwhile, off-road vehicles sales grew more rapidly, indicating burgeoning customer demand for off-road and ATV recreation. We are excited about the new products we are introducing for this segment."

Turning to the balance sheet, Hu commented, "During the quarter we received the final payment related to the sale of our 22% equity position in Fengsheng. Our liquidity has never been better. We are well-capitalized to pursue the most promising market opportunities: those that show high demand, are not oversupplied, and play to our competitive strengths. After we finish the ‘reset' of our electric vehicle business, we can again achieve substantial growth."

Q3 2021 Financial Results

Net Revenues and Gross Profit (in USD millions)

	3Q21	3Q20	Y/Y%
Net Revenue	$16.8	$18.7	-10.3%
Gross Profit	$2.7	$3.9	-29.7%
Gross Margin	16.4%	20.9%	-

Net revenues of $16.8 million decreased 10.3% from the third quarter of 2020. The decrease in revenue was primarily due to lower sales of EV parts. Gross margin was 16.4%, lower than the 20.9% recorded in the same period of 2020, primarily attributable to a lower proportion of revenue generated from off-road vehicles, which offers higher gross margin.

Operating Income/Loss (in USD millions)

	3Q21	3Q20	Y/Y%
Operating Expenses	($11.8)	($6.3)	87.2%
Loss from Operations	($9.0)	($2.4)	279.3%
Operating Margin	-53.7%	-12.7%	-

Operating expenses were $11.8 million, compared with expenses of $6.3 million in the third quarter of 2020. The greater expense was primarily attributable to increased R&D spending for new product development.

Net Loss (in USD millions)

	3Q21	3Q20	Y/Y%
Net Loss	($7.9)	($1.5)	439.6%
Net Loss per Share, Basic and Diluted	($0.10)	($0.03)	-

Net loss was $7.9 million, compared with a net loss of $1.5 million in the same period of 2020. The greater loss was primarily attributable to higher R&D spending and decreased revenue generated by certain EV parts.

Conference Call Details

The Company has scheduled a conference call and live webcast to discuss its financial results at 8:00 A.M. Eastern Time (9:00 P.M. Beijing Time) on Tuesday, November 9, 2021. Management will deliver prepared remarks to be followed by a question and answer session.

The dial-in details for the conference call are as follows:

Toll-free dial-in number: +1-844-825-9789
International dial-in number: + 1-412-317-5180
Webcast and replay: https://viavid.webcasts.com/starthere.jsp?ei=1511452&tp_key=9297e2ff2a

The live audio webcast of the call can also be accessed by visiting Kandi's Investor Relations page on the Company's website at http://www.kandivehicle.com. An archive of the webcast will be available on the Company's website following the live call.

About Kandi Technologies Group, Inc.

Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd. ("Zhejiang Kandi Technologies"), formerly, Zhejiang Kandi Vehicles Co., Ltd.) and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC. Zhejiang Kandi Technologies has established itself as one of China's leading manufacturers of pure electric vehicle parts and off-road vehicles.

Safe Harbor Statement

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.

Contacts:

Kandi Technologies Group, Inc.

Ms. Kewa Luo

+1 (212) 551-3610

IR@kandigroup.com

The Blueshirt Group

Mr. Gary Dvorchak, CFA

gary@blueshirtgroup.com

- Tables Below –

KANDI TECHNOLOGIES GROUP, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	September 30, 2021			December 31, 2020

Current assets
Cash and cash equivalents	$	132,866,957		$	142,078,190
Restricted cash		23,903,418			442,445
Certificate of deposit		54,207,258			-
Accounts receivable (net of allowance for doubtful accounts of $111,481 and $110,269 as of September 30, 2021 and December 31, 2020, respectively)		43,998,755			38,547,137
Inventories		27,346,751			19,697,383
Notes receivable		106,514			31,404,630
Other receivables		23,754,321			1,875,245
Prepayments and prepaid expense		19,371,962			13,708,149
Advances to suppliers		12,506,543			36,733,182
Amount due from the Affiliate Company		-			21,742,226
Amount due from related party		-			886,989
TOTAL CURRENT ASSETS		338,062,479			307,115,576

NON-CURRENT ASSETS
Property, plant and equipment, net		90,461,708			65,402,680
Intangible assets, net		2,770,152			3,232,753
Land use rights, net		3,224,185			3,257,760
Construction in progress		8,306,311			16,317,662
Deferred taxes assets		7,852,209			8,964,946
Long term investment		154,878			45,958
Investment in the Affiliate Company		-			28,892,638
Goodwill		29,963,965			29,712,383
Other long term assets		11,946,463			32,307,484
TOTAL NON-CURRENT ASSETS		154,679,871			188,134,264

TOTAL ASSETS	$	492,742,350		$	495,249,840

CURRENT LIABILITIES
Accounts payable	$	26,177,367		$	34,257,935
Other payables and accrued expenses		3,000,136			7,218,395
Short-term loans		2,630,000			-
Notes payable		371,707			92,445
Income tax payable		11,660,654			1,313,754
Advance receipts		601,644			38,229,242
Amount due to related party		500,000			500,000
Other current liabilities		3,682,386			2,185,654
TOTAL CURRENT LIABILITIES		48,623,894			83,797,425

NON-CURRENT LIABILITIES
Deferred taxes liability		602,435			3,483,171
Contingent consideration liability		-			3,743,000
Other long-term liabilities		464,634			459,580
TOTAL NON-CURRENT LIABILITIES		1,067,069			7,685,751
TOTAL LIABILITIES		49,690,963			91,483,176

STOCKHOLDER'S EQUITY
Common stock, $0.001 par value; 100,000,000 shares authorized; 77,462,516 and 77,298,499 shares issued and 77,152,972 and 75,377,555 outstanding at September 30,2021 and December 31,2020, respectively		77,153			75,377
Additional paid-in capital		448,591,602			439,549,338
Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at September 30,2021 and December 31,2020, respectively)		(421,965	)		(27,079,900	)
Accumulated other comprehensive loss		(5,195,403	)		(8,778,151	)
TOTAL STOCKHOLDERS' EQUITY		443,051,387			403,766,664
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	492,742,350		$	495,249,840

KANDI TECHNOLOGIES GROUP, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

	Three Months Ended						Nine Months Ended
	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020

REVENUES FROM UNRELATED PARTIES, NET	$	16,795,712		$	18,717,212		$	62,647,714		$	44,525,756
REVENUES FROM THE AFFILIATE COMPANY AND RELATED PARTIES, NET		-			6			1,587			962

REVENUES, NET		16,795,712			18,717,218			62,649,301			44,526,718

COST OF GOODS SOLD		(14,046,041	)		(14,806,322	)		(49,447,497	)		(35,911,785	)

GROSS PROFIT		2,749,671			3,910,896			13,201,804			8,614,933

OPERATING INCOME (EXPENSE):
Research and development		(6,747,934	)		(987,285	)		(31,937,436	)		(2,777,426	)
Selling and marketing		(1,290,544	)		(2,165,383	)		(3,494,927	)		(3,807,355	)
General and administrative		(3,733,230	)		(3,212,209	)		(13,522,925	)		(10,186,135	)
Gain on disposal of long-lived assets		2,238			76,159			48,255,905			13,983,733
TOTAL OPERATING EXPENSE		(11,769,470	)		(6,288,718	)		(699,383	)		(2,787,183	)

(LOSS) INCOME FROM OPERATIONS		(9,019,799	)		(2,377,822	)		12,502,421			5,827,750

OTHER INCOME (EXPENSE):
Interest income		1,247,544			558,059			2,750,241			1,118,795
Interest expense		(63,368	)		(788,589	)		(267,785	)		(2,894,579	)
Change in fair value of contingent consideration		-			(1,069,000	)		-			1,794,000
Government grants		220,967			13,431			570,162			111,329
Gain from sale of equity in the Affiliate Company		822			-			17,734,733			-
Share of loss after tax of the Affiliate Company		(119	)		(1,550,568	)		(2,584,520	)		(5,631,867	)
Other income, net		442,102			988,287			4,768,092			2,051,272
TOTAL OTHER INCOME (EXPENSE), NET		1,847,948			(1,848,380	)		22,970,923			(3,451,050	)

(LOSS) INCOME BEFORE INCOME TAXES		(7,171,851	)		(4,226,202	)		35,473,344			2,376,700

INCOME TAX (EXPENSE) BENEFIT		(696,968	)		2,767,939			(8,815,409	)		(1,354,563	)

NET (LOSS) INCOME		(7,868,819	)		(1,458,263	)		26,657,935			1,022,137

OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment		(116,054	)		8,216,974			3,582,748			5,171,643

COMPREHENSIVE (LOSS) INCOME	$	(7,984,873	)	$	6,758,711		$	30,240,683		$	6,193,780

WEIGHTED AVERAGE SHARES OUTSTANDING BASIC AND DILUTED		76,394,573			54,112,981			75,766,749			53,282,066

NET (LOSS) INCOME PER SHARE, BASIC AND DILUTED	$	(0.10	)	$	(0.03	)	$	0.35		$	0.02

KANDI TECHNOLOGIES GROUP, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(UNAUDITED)

	Number of Outstanding Shares		Common Stock		Treasury Stock			Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Total
Balance, December 31, 2019		52,839,441	$	52,839	$	(2,477,965	)	$	259,691,370		$	(16,685,736	)	$	(22,723,581	)	$	217,856,927
Stock issuance and award		10,000		10		-			22,290			-			-			22,300
Net loss		-		-		-			-			(1,574,646	)		-			(1,574,646	)
Foreign currency translation		-		-		-			-			-			(3,523,065	)		(3,523,065	)

Balance, March 31, 2020		52,849,441	$	52,849	$	(2,477,965	)	$	259,713,660		$	(18,260,382	)	$	(26,246,646	)	$	212,781,516
Stock issuance and award		1,502,717		1,503					3,164,925									3,166,428
Net income												4,055,043						4,055,043
Foreign currency translation															477,734			477,734

Balance, June 30, 2020		54,352,158	$	54,352	$	(2,477,965	)	$	262,878,585		$	(14,205,339	)	$	(25,768,912	)	$	220,480,721
Stock issuance and award		258,600		259		-			870,837			-			-			871,096
Net loss		-		-		-			-			(1,458,263	)		-			(1,458,263	)
Foreign currency translation		-		-		-			-			-			8,216,974			8,216,974
Reduction in the Affiliate Company's equity		-		-		-			(3,144,213	)		-			-			(3,144,213	)
Balance, September 30, 2020		54,610,758	$	54,611	$	(2,477,965	)	$	260,605,209		$	(15,663,602	)	$	(17,551,938	)	$	224,966,315

	Number of Outstanding Shares		Common Stock		Treasury Stock		Additional Paid-in Capital		Accumulated Earning (Deficit)			Accumulated Other Comprehensive Income			Total
Balance, December 31, 2020	75,377,555	$	75,377	$	-	$	439,549,338	$	(27,079,900	)	$	(8,778,151	)	$	403,766,664
Stock issuance and award	10,000		10		-		22,290		-			-			22,300
Net loss	-		-		-		-		(6,402,720	)		-			(6,402,720	)
Foreign currency translation	-		-		-		-		-			(1,176,013	)		(1,176,013	)
Reversal of reduction in the Affiliate Company's equity (net off tax effect of $491,400)	-		-		-		2,771,652		-			-			2,771,652

Balance, March 31, 2021	75,387,555	$	75,387	$	-	$	442,343,280	$	(33,482,620	)	$	(9,954,164	)	$	398,981,883
Stock issuance and award	238,600		239		-		1,374,098		-			-			1,374,337
Net income	-		-		-		-		40,929,474			-			40,929,474
Foreign currency translation	-		-		-		-		-			4,874,815			4,874,815

Balance, June 30, 2021	75,626,155	$	75,626	$	-	$	443,717,378	$	7,446,854		$	(5,079,349	)	$	446,160,509
Stock issuance and award	1,526,817		1,527		-		4,874,224		-			-			4,875,751
Net loss	-		-		-		-		(7,868,819	)		-			(7,868,819	)
Foreign currency translation	-		-		-		-		-			(116,054	)		(116,054	)

Balance, September 30, 2021	77,152,972	$	77,153	$	-	$	448,591,602	$	(421,965	)	$	(5,195,403	)	$	443,051,387

KANDI TECHNOLOGIES GROUP, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine Months Ended
	September 30, 2021			September 30, 2020

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	26,657,935		$	1,022,137
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		6,893,192			6,078,070
(Reversal) provision of allowance for doubtful accounts		-			(150,756	)
Deferred taxes		(11,970	)		1,256,167
Share of loss after tax of the Affiliate Company		2,584,520			5,631,867
Gain from equity sale in the Affiliate Company		(17,734,733	)		-
Gain on disposal of long-live assets		(48,255,905	)		(13,983,733	)
Change in fair value of contingent consideration		-			(1,794,000	)
Stock based compensation expense		1,452,381			870,471

Changes in operating assets and liabilities:

Accounts receivable		4,289,150			18,165,084
Inventories		(7,443,414	)		(1,830,827	)
Other receivables and other assets		(17,537,034	)		(5,226,968	)
Advances to supplier and prepayments and prepaid expenses		18,776,708			(84,089	)
Amount due from the Affiliate Company		-			4,178,477

Increase (Decrease) In:
Accounts payable		(4,116,153	)		(15,642,931	)
Other payables and accrued liabilities		7,052,572			2,675,156
Notes payable		(93,278	)		(13,725,855	)
Income tax payable		8,053,977			(804,238	)
Net cash used in operating activities	$	(19,432,052	)	$	(13,365,968	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment, net		(10,948,968	)		(383,568	)
Prepayments for acquisition of Jiangxi Huiyi		(3,864,346	)		-
Payment for construction in progress		(4,048,889	)		(1,604,427	)
Proceeds from disposal of long-lived assets		23,235,758			51,872,829
Loan to third party		31,687,637			(45,958,247	)
Certificate of deposit		(54,100,844	)		-
Cash received from sales of equity in the Affiliate Company		47,608,743			42,321,385
Long Term Investment		(108,202	)		-
Advance receipts of equity transfer		600,463			-
Net cash provided by investing activities	$	30,061,352		$	46,247,972

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term loans		2,630,000			24,163,223
Repayments of short-term loans		-			(50,042,178	)
Repayments of long-term loans		-			(285,955	)
Proceeds from long-term loans		-			394,116
Net cash provided by (used in) financing activities	$	2,630,000		$	(25,770,794	)

NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	$	13,259,300		$	7,111,210
Effect of exchange rate changes	$	990,440		$	535,314
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR	$	142,520,635		$	16,512,635

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	$	156,770,375		$	24,159,159
-CASH AND CASH EQUIVALENTS AT END OF PERIOD		132,866,957			23,909,159
-RESTRICTED CASH AT END OF PERIOD		23,903,418			250,000

SUPPLEMENTARY CASH FLOW INFORMATION
Income taxes paid	$	688,160			901,021
Interest paid	$	17,536			644,724
SUPPLEMENTAL NON-CASH DISCLOSURES:
Reversal of decrease in investment in the Affiliate Company due to change in its equity (net off tax effect of $491,400)	$	2,813,968			-
Decrease in investment in the Affiliate Company due to change in its equity		-			3,057,540
Common stock issued for settlement of payables related to acquisitions (see Note 21)	$	4,853,451			3,166,427

Kandi Technologies Reports Third Quarter 2021 Financial Results