JINHUA, ZHEJIANG PROVINCE, CHINA -- (MARKET WIRE) -- 09/24/07 -- 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.
Contacts:
Kandi Technologies, Corp
Hu Xiaoming
President and CEO
(86-0579) 82239700
US Investors
Press
Tel 212-425-5700
Fax 212-425-6951
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