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What: Shares of Kandi Technologies (NASDAQ:KNDI), a Chinese manufacturer of electric vehicles, go-karts, and other specialized vehicles, shot higher on Monday after the company reported its result for 2014. By noon, the stock was up about 10%.
So what: Kandi reported revenue of $170.2 million for 2014, up 80.1% year over year; $116.4 million of this came from electric vehicle parts sales, a segment that generated practically no revenue in 2013. An electric vehicle joint venture, Kandi Electric Vehicles Group, generated $215.5 million in sales during 2014, but none of this revenue was reported by Kandi directly since the company only owns 50% of the JV.
Generally accepted accounting princples net income was $0.29 per share for the year, with non-GAAP net income slightly higher at $0.33 per share. Both figures were higher compared to 2013 by more than 150%. Total operating expenses actually declined compared to 2013, despite the rapid rise in revenue, with both research and development spending and general and administrative spending contracting. Gross margin, on the other hand, plummeted to 13.75%, down from 23% in 2013.
Now what: CEO Xiaoming Hu had this to say about the company's future prospects: "Looking ahead, we are extremely excited about Kandi's business prospects for continued growth. Given the government's strong commitment toward policies that encourage the adoption of electric vehicles nationwide, including the national and local government subsidies, the electric vehicle tax breaks, along with the prevailing favorable market conditions in China, we are confident in our ability to execute our strategy to further grow market shares in China."