Kandi Technologies Group Inc (KNDI) 2025 Q2 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for Kandi Technologies Incorporated earnings conference call for the first half of 2025. (Operator Instructions) Today's conference is being recorded.

各位女士、先生們，大家好。感謝您參加 Kandi Technologies Incorporated 2025 年上半年業績電話會議。（操作員說明）今天的會議正在錄音。

I will now turn the call over to your host, Ms. Kewa Luo, the IR Director of the company. Please go ahead.

現在我將把電話交給貴公司投資者關係總監羅可娃女士。請繼續。

Hello, everyone, and welcome to Kandi Technologies earnings conference call for the first half of 2025. As a reminder, today's call is being recorded. The company's financial and operational highlights were issued in our press release earlier today and are available online.

大家好，歡迎參加 Kandi Technologies 2025 年上半年業績電話會議。再次提醒，今天的通話將會被錄音。公司財務和營運亮點已於今日早些時候在新聞稿中發布，並可在網上查閱。

You can access the earnings press release and subscribe to the company's e-mail alerts by visiting the Investor Relations section of our website at ir.kandigroup.com. Joining us today are Mr. Feng Chen, Chief Executive Officer; and Mr. Alan Lim, Chief Financial Officer.

您可以透過造訪我們網站 ir.kandigroup.com 的投資者關係頁面，查閱獲利新聞稿並訂閱本公司的電子郵件提醒。今天出席會議的有執行長馮晨先生和財務長林先生。

Before we begin, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today.

在開始之前，請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案安全港條款所作出的前瞻性陳述。前瞻性陳述涉及固有的風險和不確定性。因此，公司的實際業績可能與今天表達的預期有重大差異。

Further information regarding these, and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligation to update any forward-looking statements except as required under applicable laws. Unless otherwise noted, all financial figures discussed today are in US dollars.

有關這些以及其他風險和不確定性的更多信息，請參閱公司向美國證券交易委員會提交的公開文件。除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。除非另有說明，今天討論的所有財務數據均以美元計。

I will now turn the call over to our CEO, Mr. Feng Chen, who will deliver his remarks in Chinese, followed immediately by English translation. Mr. Chen, please go ahead.

現在我將把電話交給我們的執行長馮晨先生，他將用中文致辭，隨後立即進行英文翻譯。陳先生，請繼續。

(interpreted) Good day, investors and analysts. Welcome to Kandi Technologies earnings conference call for the first half of 2025. We sincerely appreciate your taking the time to join us as we review the company's first-half performance.

（翻譯）各位投資人和分析師，大家好。歡迎參加 Kandi Technologies 2025 年上半年業績電話會議。我們衷心感謝您抽出時間與我們一起回顧公司上半年的表現。

In the first half of 2025, the global macroeconomic landscape remains clouded by considerable uncertainty, creating real headwinds for our business. Nevertheless, thanks to our agility and strategic foresight, we made substantial progress on several key initiatives while enhancing our traditional Off-Road Vehicle operations.

2025 年上半年，全球宏觀經濟情勢仍充滿相當大的不確定性，為我們的業務帶來了真正的阻力。儘管如此，憑藉我們的敏捷性和策略遠見，我們在幾個關鍵舉措上取得了實質進展，同時加強了我們傳統的越野車業務。

We also leveraged our core strengths to expand into the emerging fields of embodied intelligence and New Energy infrastructure. Through the confirmation of several pivotal partnerships, we steadily advanced our transformation from a conventional manufacturing enterprise into a holding platform, with intelligent equipment manufacturing at its core.

我們也運用自身核心優勢，拓展到具身智慧和新能源基礎設施等新興領域。透過確認幾項關鍵合作夥伴關係，我們穩步推進從傳統製造企業向以智慧裝備製造為核心的控股平台的轉型。

This transformation initiative not only speaks to our resilience in a challenging environment but also reaffirms our confidence in delivering sustainable growth over the long term. I will begin with an update on the latest developments in our core business.

這項轉型計畫不僅體現了我們在充滿挑戰的環境中所展現的韌性，也再次印證了我們對實現長期永續成長的信心。我將首先報告我們核心業務的最新進展。

Following the adjustments and upgrades made in the first half of the year, we have entered a new phase of refined operations, with the goal of delivering steady high-quality growth. Through more efficient resource allocation, inventory optimization, and disciplined cost control, we are gradually improving our profitability and strengthening our cash flow management.

經過上半年的調整和升級，我們進入了精細化營運的新階段，目標是實現穩定的高品質成長。透過更有效率的資源配置、庫存優化和嚴格的成本控制，我們正在逐步提高獲利能力並加強現金流管理。

Let's look more closely at this business operations from three key aspects. In product sales, our focus on inventory management within retail channels drove a notable improvement in gross margin to 45.2% for the first half of 2025, up 13.5 percentage points from 31.7% in the same period of 2024. This reflects the effectiveness of our refined operations and cost control initiatives.

讓我們從三個關鍵方面更仔細地看一下這項業務的運作。在產品銷售方面，我們專注於零售通路內的庫存管理，使得 2025 年上半年的毛利率顯著提高至 45.2%，比 2024 年同期的 31.7% 提高了 13.5 個百分點。這反映了我們優化營運和成本控制措施的有效性。

Meanwhile, by optimizing our internal production structure and streamlining assembly line processes, we have enhanced manufacturing efficiency and shortened delivery cycles, further strengthening product delivery reliability.

同時，透過優化內部生產結構和簡化組裝線流程，我們提高了生產效率，縮短了交付週期，進一步增強了產品交付的可靠性。

Second, on the sales channel front, we are creating a more balanced and strategic distribution layout to enhance both our market penetration and service capabilities. To that end, we have reinforced key partnerships with major retailers, including Lowe's, while further expanding our dealer network.

其次，在銷售通路方面，我們正在打造更平衡和具有策略意義的分銷佈局，以增強我們的市場滲透率和服務能力。為此，我們加強了與包括勞氏公司在內的主要零售商的關鍵合作關係，同時進一步擴大了我們的經銷商網路。

Our products are now carried in 1,050 retail outlets, with our dealer network demonstrating steady growth. Thanks to the concerted efforts of our new sales team, the dealer-to-retail sales mix has improved from 129 previously to 228 as of the end of June, reflecting a more diversified and resilient channel structure.

我們的產品目前在 1050 家零售店銷售，我們的經銷商網路呈現穩定成長的態勢。由於我們新銷售團隊的共同努力，截至 6 月底，經銷商與零售商的銷售比例已從先前的 129 提高到 228，反映出通路結構更加多元化和更具韌性。

Beyond our traditional sales channels, we are actively exploring high-margin direct-to-consumer channels, e-commerce platforms, and major distributor networks, while evaluating and optimizing the long-term profitability of our key partnerships. We aim to achieve an optimal balance among brand visibility, market share, and profitability.

除了傳統的銷售管道外，我們正在積極探索高利潤的直接面向消費者的管道、電子商務平台和主要分銷商網絡，同時評估和優化我們主要合作夥伴關係的長期盈利能力。我們的目標是在品牌知名度、市場佔有率和獲利能力之間實現最佳平衡。

Finally, we have proactively accelerated the design and development of several new products. The design, schematics are finalized. And we anticipate launching these products by the middle of next year. Their introduction will provide new growth momentum, broaden our product portfolio, and further enhance our market competitiveness.

最後，我們積極加快了幾個新產品的設計和開發。設計圖和原理圖已最終確定。我們預計將於明年年中推出這些產品。它們的引入將帶來新的成長動力，拓寬我們的產品組合，並進一步增強我們的市場競爭力。

Moving on to our emerging business segments, supported by King market insights, we maintain an innovation-driven approach to these segments. With particular emphasis on Intelligent Equipment and New Energy infrastructure, let me walk you through our latest initiatives in those two fields.

接下來，我們將目光轉向新興業務領域，在 King 市場洞察的支持下，我們對這些領域保持著創新驅動的方法。接下來，我將重點介紹我們在智慧裝備和新能源基礎設施的最新舉措。

In the first half of this year, we embarked on a deep collaboration with Deep Robotics, a leading Chinese innovator in embodied intelligence, to jointly develop intelligent golf equipment and [quadruped] robots for security inspections, leveraging our independently developed cloud edge terminal intelligence computing system. These emerging small devices are designed to precisely meet diverse market needs, unlocking substantial growth potential for our Intelligent Equipment business.

今年上半年，我們與中國具身智慧領域的領先創新者深博機器人展開了深度合作，利用我們自主研發的雲端邊緣終端智慧運算系統，共同開發智慧高爾夫球具和用於安檢的四足機器人。這些新興的小型設備旨在精準滿足多樣化的市場需求，為我們的智慧型裝置業務釋放巨大的成長潛力。

In the New Energy infrastructure sector, battery swapping technology remains a key strategic cornerstone for us. Kandi has been advancing the adoption and application of this technology for over a decade, establishing ourselves as the industry a pioneer.

在新能源基礎設施領域，電池更換技術仍然是我們的關鍵策略基石。十多年來，Kandi 一直致力於推動這項技術的採用和應用，使我們成為該行業的先驅。

Through our subsidiary, China Battery Exchange (Zhejiang) Technology Company Limited, we have become a supplier of heavy-truck battery swapping station equipment to CATL, the global leader in power batteries and have successfully secured our first order to support the rollout of its ambitious 10,000 stations planned. This collaboration not only strengthens our technological leadership, but also positions us to generate substantial revenue.

透過我們的子公司中國電池交易所（浙江）科技有限公司，我們已成為全球動力電池領導者寧德時代（CATL）的重型卡車電池更換站設備供應商，並成功獲得了第一筆訂單，以支持其雄心勃勃的10000個換電站計劃的推出。此次合作不僅鞏固了我們的技術領先地位，也使我們能夠創造可觀的收入。

Before I conclude, a brief look at our financial position. As of June 30, 2025, the company held $257 million in cash, cash equivalents, restricted cash, and certificates of deposit. Our balance sheet remains exceptionally strong, providing ample liquidity to support both our strategic growth initiatives and ongoing business expansion.

在結束之前，我簡單看一下我們的財務狀況。截至 2025 年 6 月 30 日，該公司持有 2.57 億美元的現金、現金等價物、受限現金和存款憑證。我們的資產負債表仍然非常穩健，為我們的策略成長計畫和持續的業務擴張提供了充足的流動性。

In summary, Kandi demonstrated resilience and a strong capacity for sustained growth amidst external challenges and internal transformation during the first half of 2025. Despite some short-term volatility, we believe our disciplined focus on optimized operations, strategic recalibration, and technological innovation has positioned the company for long-term development.

總而言之，在 2025 年上半年，Kandi 在外部挑戰和內部轉型中展現了韌性和強大的持續成長能力。儘管短期內可能會出現一些波動，但我們相信，我們專注於優化營運、策略調整和技術創新，已經使公司為長期發展奠定了基礎。

Looking ahead, we are confident in our dual engine strategy, balancing stable cash flow businesses with growth incubation businesses. Through disciplined execution and continuous innovation, we will strengthen our position in Off-Road Vehicle sector, while strategically expanding into Intelligent Equipment and New Energy markets, maintaining our competitive edge and creating long-term value for our shareholders and investors.

展望未來，我們對雙引擎策略充滿信心，該策略旨在平衡現金流穩定的業務和成長孵化業務。透過嚴謹的執行和持續的創新，我們將鞏固我們在越野車領域的地位，同時策略性地拓展智慧裝備和新能源市場，保持我們的競爭優勢，並為我們的股東和投資者創造長期價值。

Now let me turn the call over to our CFO, Alan Lim, who will provide details on our financial performance. Thank you.

現在我把電話交給我們的財務長 Alan Lim，他將詳細介紹我們的財務表現。謝謝。

Thank you, Mr. Chen and Kewa. Thank you, and thank you, everyone, for joining us today. I will go over our unaudited financial results for the first half of 2025. The net revenues were $36.3 million, down 39.3% from $59.8 million for the same period of 2024, primarily reflecting the lower sales of Off-Road Vehicles and EV products.

謝謝陳先生和科瓦。謝謝大家，也謝謝各位今天蒞臨現場。我將介紹我們2025年上半年的未經審計的財務表現。淨收入為 3,630 萬美元，比 2024 年同期的 5,980 萬美元下降了 39.3%，主要反映出越野車和電動車產品的銷量下降。

The cost of goods sold was $19.9 million, a decrease of 51.3% from $40.9 million for the same period of 2024. The decrease was primarily due to the corresponding decrease in sales. The gross profit was $16.4 million compared with $19.1 million for the same period of 2024. The gross margin improved significantly to 45.2%, up from 31.7% last year, driven by more favorable product mix and regional revenue distribution, as well as increased sales of previously impaired inventory.

銷售成本為 1,990 萬美元，比 2024 年同期的 4,090 萬美元減少了 51.3%。這一降幅主要是由於銷售額相應下降所致。毛利為 1,640 萬美元，而 2024 年同期為 1,910 萬美元。毛利率顯著提高至 45.2%，高於去年的 31.7%，這主要得益於更有利的產品組合和區域收入分佈，以及先前減損庫存的銷售增加。

The total operating expenses were $18.3 million, a decrease of 21.4% from $23.3 million for the same period of 2024. Regarding the breakdown for expenses, research and development expenses were $2.5 million, up 48.5% from $1.7 million for the same period of 2024, mainly due to a battery product R&D project launched in the first half of 2025.

總營運支出為 1,830 萬美元，比 2024 年同期的 2,330 萬美元減少了 21.4%。在費用細分方面，研發費用為 250 萬美元，比 2024 年同期的 170 萬美元增長了 48.5%，這主要是由於 2025 年上半年啟動了一個電池產品研發專案。

The selling and marketing expenses were $4.5 million, down 45.8% from $7.0 million for the same period of 2024. The decrease was comparable with the scale of decrease in revenue. The general and administrative expenses were $11.3 million, down 22.6% from $14.6 million for the same period of 2025. The decrease was mainly due to a lower depreciation resulting from the long-lived asset impairment recorded at the end of 2024 and reduced stock-based compensation expenses compared with the prior-year period.

銷售和行銷費用為 450 萬美元，比 2024 年同期的 700 萬美元下降了 45.8%。降幅與收入降幅相當。一般及行政費用為 1,130 萬美元，比 2025 年同期的 1,460 萬美元下降了 22.6%。此下降主要是由於 2024 年底確認的長期資產減損導致折舊減少，以及與去年同期相比，股票選擇權費用減少。

The net income was $1.7 million compared with $2.4 million for the same period of 2024. The basic and diluted net income attributable to the company's stockholders per share were $0.02 compared with $0.03 for the same period of 2024.

淨收入為 170 萬美元，而 2024 年同期為 240 萬美元。歸屬於公司股東的基本及稀釋後每股淨收益為 0.02 美元，而 2024 年同期為 0.03 美元。

Turning to our balance sheet, our financial position remains strong. As of June 30, 2025, the company had cash and cash equivalents, restricted cash, and certificates of deposits totaling $256.7 million, compared with $126.3 million as of December 31, 2024.

從資產負債表來看，我們的財務狀況依然穩健。截至 2025 年 6 月 30 日，該公司擁有現金及現金等價物、受限現金和定期存款總額為 2.567 億美元，而截至 2024 年 12 月 31 日，這一數字為 1.263 億美元。

That concludes our remarks. I will now hand the call back to Kewa for any final comments. Thank you.

我們的發言到此結束。現在我將把電話轉回給Kewa，請她發表最後意見。謝謝。

Thank you once again for joining us today. If you have any further questions, please reach out using the contact information provided on our website. We appreciate your time and interest in Kandi Technologies. This concludes today's conference call. You may now disconnect

再次感謝您今天蒞臨。如果您還有其他疑問，請使用我們網站上提供的聯絡資訊與我們聯絡。感謝您抽空關注康迪科技。今天的電話會議到此結束。您現在可以斷開連線了。

Thank you. This concludes today's call. Have a wonderful afternoon. You may now disconnect your lines.

謝謝。今天的電話會議到此結束。祝您下午愉快。現在您可以斷開線路了。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標有（已翻譯）的部分是由現場通話中的翻譯人員翻譯的。本次活動的翻譯人員由活動贊助公司提供。