Kandi Technologies Group(KNDI 4.78%) reported its first half 2025 earnings on August 19, 2025, with net revenue of $36.3 million. Net revenue decreased by 39.3% compared to the same period in 2024, but gross margin rose to 45.2%, up from 31.7% in the same period of 2024. Management highlighted a major channel realignment, substantial progress in new product and technology segments, and maintained an exceptionally strong cash position of $256.7 million as of June 30, 2025.
Gross margin surges 13.5 percentage points for KNDI
Net revenue (GAAP) decreased by $23.5 million year-over-year, yet disciplined inventory management and cost controls improved product mix, as gross profit margin rose to 45.2%, up from 31.7% in the same period of 2024. This margin expansion coincided with a 51.3% decline in cost of goods sold compared to the same period in 2024, suggesting effective operational adjustments despite market contraction.
"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."
-- Feng Chen, Chief Executive Officer
This sharp margin improvement amidst steep revenue declines signals reinforced pricing discipline and increased operational efficiency, supporting near-term profitability and long-term business resilience despite lower topline sales, as evidenced by a gross margin of 45.2% (GAAP).
KNDI pivots toward intelligent equipment and battery swapping
In addition to strengthening its traditional off-road vehicle segment, the company is prioritizing new growth channels, particularly through a collaboration with Deep Robotics and via its subsidiary China Battery Exchange’s high-profile supply deal with global battery leader CATL. These initiatives align with broader industry trends of electrification and automation.
"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. 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. Through our subsidiary, China Battery Exchange, Zheijang Technology Co. Ltd., 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 plan. This collaboration not only strengthens our technological leadership, but also positions us to generate substantial revenue."
-- Feng Chen, Chief Executive Officer
The company’s expansion into intelligent equipment and battery swapping, supported by partnerships with Deep Robotics and CATL, positions it to capture new revenue streams and technological leadership in emerging markets.
Cash position nearly doubles, securing KNDI’s strategy
At quarter end, unrestricted and restricted cash and certificates of deposit totaled $256.7 million as of June 30, 2025, compared to $126.3 million at year-end 2024, reflecting an increase of $130.4 million in cash and certificates of deposit from December 31, 2024, to June 30, 2025. This substantial cash reserve of $257 million as of June 30, 2025, is equivalent to roughly 1.8x current market capitalization, provides ample liquidity to support strategic growth initiatives and ongoing business expansion.
"As of June 30, 2025, the company had cash and cash equivalents, the restricted cash and certificates of deposits totaling $256.7 million, compared with $126.3 million as of December 31, 2024."
-- Jehn Ming Lim, Chief Financial Officer
This strong liquidity position enables the company to fund new product development, strategic partnerships, and business expansion without relying on external financing.
Looking Ahead
Management reaffirmed the dual-engine strategy balancing stable off-road vehicle cash flows and investments into intelligent equipment and battery swapping, with new product launches anticipated by the middle of next year. No explicit quantitative guidance on revenue or margin, nor timeframe for profitability improvement, was provided during the call. Strategic milestones referenced include product launches and revenue generation from the CATL battery swapping partnership.
