Kandi Technologies' Q2 2025: Key Contradictions in Revenue Growth, Margins, and Strategic Direction

Revenue performance and growth strategy, gross margin improvement, dividend policy and financial strategy, marketing and brand promotion strategy, and expansion and international market strategy are the key contradictions discussed in Kandi Technologies' latest 2025Q2 earnings call.



Revenue Decline and Operational Efficiency:
- Kandi Technologies reported net revenues of $36.3 million for the first half of 2025, a 39.3% decrease from the same period in 2024.
- The decline was primarily due to lower sales of off-road vehicles and EV products. However, the company improved its operational efficiency by optimizing inventory management and enhancing manufacturing efficiency, resulting in a gross margin increase to 45.2% from 31.7% in the previous year.

Gross Margin Improvement:
- The gross margin for the first half of 2025 improved significantly to 45.2%, up from 31.7% in the same period of 2024.
- The improvement was driven by more favorable product mix, regional revenue distribution, and increased sales of previously impaired inventory.

Balance Sheet Strength and Liquidity:
- As of June 30, 2025, Kandi Technologies held $256.7 million in cash, cash equivalents, restricted cash, and certificates of deposit.
- The strong balance sheet provides ample liquidity to support strategic growth initiatives and ongoing business expansions.

Investment in R&D and New Business Segments:
- Research and development expenses increased by 48.5% to $2.5 million in the first half of 2025 from the same period in 2024.
- The increase was mainly due to a battery product R&D project launched in the first half of 2025, reflecting the company's focus on new business segments like intelligent equipment and new energy infrastructure.