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Kandi Technologies Reports Second Quarter 2022 Financial Results

·15-min read

-  Off-road Vehicles Sales Are Steadily Growing
-  Quarter-end cash balance1 increased to $232.5 million

JINHUA, China, Aug. 08, 2022 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the “Company,” “we” or “Kandi”) (NASDAQ GS: KNDI), today announced its financial results for the second quarter of 2022.

Second Quarter Highlights

  • Total revenues of $20.8 million compared to $29.9 million in the same period of 2021.

  • Off-road vehicles sales increased by 84.4% to $10.1 million, compared to $5.5 million in the same period of 2021.

  • EV products sales increased by 307.1% to $2.5 million, compared to $0.6 million in the same period of 2021.

  • EV parts sales were $0.6 million, compared to $6.7 million in the same period of 2021.

  • Electric Scooters, Electric Self-Balancing Scooters and associated parts sales were $1.2 million, compared with $16.5 million in the same period of 2021.

  • Net loss was $1.9 million, or $0.02 loss per fully diluted share, compared to a net income of $40.9 million, or $0.54 income per fully diluted share for the same period of 2021. The decrease was primarily due to the second quarter 2021 gain from the disposal of long-lived assets of approximately $48.3 million, which was related to the relocation of our Jinhua factory. There was no similar gain in the second quarter of 2022.

  • Working capital of $264.2 million as of June 30, 2022

  • Cash, cash equivalents, restricted cash, and certificate of deposit of $232.5 million as of June 30, 2022

Mr. Hu Xiaoming, Chairman and CEO of Kandi commented, “Kandi has continuously refined its business strategy to make our company more diversified and competitive. We saw the positive impact of this effort in the second quarter. Despite frequent lockdowns caused by COVID resurgences and severe supply chain disruptions, our business strategy adjustments enabled us to achieve relatively solid results. Notably, we are getting traction in a variety of newly launched off-road vehicles, such as golf karts, UTVs, ATVs, and beach dune buggy crossovers. For example, the monthly production of golf crossovers increased to 2,000 units in June, from just double digits in March. We intend to launch more new models as the year goes on to capture this market opportunity. We believe this product category could grow around 19%2 annually in compound growth rate, and eventually exceeding $2.2 billion by 2028. We are confident of sequential growth in off-road vehicles in the quarters ahead.”

Q2 2022 Financial Results

Net Revenues and Gross Profit (in USD millions)

 

Q2 2022

Q2 2021

Y-o-Y%

Net Revenues

$20.8

$29.9

-30.2%

Gross Profit

$2.7

$6.1

-55.4%

Gross Margin%

13.0%

20.4%

-

Net revenues of $20.8 million in the second quarter of 2022 decreased 30.2% from the same period of 2021. The revenue decline was primarily due to lower sales volumes of Electric Scooters, Electric Self-Balancing Scooters and associated parts and EV parts due to lower seasonal demand. The mix shift to more battery revenue caused the contraction in gross margin.

Operating Income/Loss (in USD millions)

 

Q2 2022

Q2 2021

Y-o-Y%

Operating (Expenses) Income

($9.0)

$38.3

-123.5%

(Loss) income from Operations

($6.3)

$44.4

-114.2%

Operating Margin%

-30.1%

148.5%

-

Operating expenses were $9.0 million, compared with operating income of $38.3 million for the same period of 2021. Second quarter 2021 operating income included the $48.3 million gain from the disposal of long-live assets related to our Jinhua facility relocation.

Net Income/Loss (in USD millions)

 

Q2 2022

Q2 2021

Y-o-Y%

Net (loss) Income

($1.9)

$40.9

-104.6%

Net (Loss) income per Share, Basic and Diluted

($0.02)

$0.54

-

Net loss for the second quarter of 2022 was $1.9 million compared to net income of $40.9 million for the same period of 2021, reflecting the one-time facility relocation gain last year.

Second Quarter 2022 Conference Call Details

The Company has scheduled a conference call and live webcast to discuss its financial results at 8:00 A.M. Eastern Time (8:00 P.M. Beijing Time) on Monday, August 8, 2022. Management will deliver prepared remarks to be followed by a question-and-answer session.

The dial-in details for the conference call are as follows:
•        Toll-free dial-in number: +1-877-407-3982
•        International dial-in number: + 1-201-493-6780
•        Webcast and replay: https://viavid.webcasts.com/starthere.jsp?ei=1562753&tp_key=ef917a2508

The live audio webcast of the call can also be accessed by visiting Kandi's Investor Relations page on the Company's website at http://www.kandivehicle.com. An archive of the webcast will be available on the Company's website following the live call.

About Kandi Technologies Group, Inc.

Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”), formerly, Zhejiang Kandi Vehicles Co., Ltd. and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC. Zhejiang Kandi Technologies has established itself as one of China's leading manufacturers of pure electric vehicle parts and off-road vehicles.

Safe Harbor Statement

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.

Follow us on Twitter: @ Kandi_Group

Contacts:

Kandi Technologies Group, Inc.
Ms. Kewa Luo
+1 (212) 551-3610
IR@kandigroup.com

The Blueshirt Group
Mr. Gary Dvorchak, CFA
gary@blueshirtgroup.com

- Tables Below -


KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

 

June 30, 2022

 

 

December 31, 2021

 

 

(Unaudited)

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

$

87,098,779

 

 

$

129,223,443

 

Restricted cash

 

72,235,039

 

 

 

39,452,564

 

Certificate of deposit

 

73,173,646

 

 

 

55,041,832

 

Accounts receivable (net of allowance for doubtful accounts of $2,903,505 and
   $3,053,277 as of June 30, 2022 and December 31, 2021, respectively)

 

37,794,871

 

 

 

52,896,305

 

Inventories

 

41,937,709

 

 

 

33,171,973

 

Notes receivable

 

725,332

 

 

 

323,128

 

Other receivables

 

8,491,785

 

 

 

8,901,109

 

Prepayments and prepaid expense

 

2,516,142

 

 

 

17,657,326

 

Advances to suppliers

 

6,978,469

 

 

 

5,940,456

 

TOTAL CURRENT ASSETS

 

330,951,772

 

 

 

342,608,136

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

Property, plant and equipment, net

 

102,735,918

 

 

 

111,577,411

 

Intangible assets, net

 

11,606,688

 

 

 

13,249,079

 

Land use rights, net

 

3,041,861

 

 

 

3,250,336

 

Construction in progress

 

373,484

 

 

 

79,317

 

Deferred tax assets

 

2,171,889

 

 

 

2,219,297

 

Long-term investment

 

149,334

 

 

 

157,262

 

Goodwill

 

34,678,790

 

 

 

36,027,425

 

Other long-term assets

 

11,166,861

 

 

 

10,992,009

 

TOTAL NON-CURRENT ASSETS

 

165,924,825

 

 

 

177,552,136

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

$

496,876,597

 

 

$

520,160,272

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Accounts payable

$

32,635,923

 

 

$

36,677,802

 

Other payables and accrued expenses

 

8,065,531

 

 

 

9,676,973

 

Short-term loans

 

1,450,000

 

 

 

950,000

 

Notes payable

 

17,933,221

 

 

 

8,198,193

 

Income tax payable

 

629,642

 

 

 

1,620,827

 

Other current liabilities

 

6,086,563

 

 

 

7,038,895

 

TOTAL CURRENT LIABILITIES

 

66,800,880

 

 

 

64,162,690

 

 

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

Long-term loans

 

2,210,589

 

 

 

2,210,589

 

Deferred taxes liability

 

2,490,130

 

 

 

2,460,141

 

Contingent consideration liability

 

5,513,000

 

 

 

7,812,000

 

Other long-term liabilities

 

880,925

 

 

 

314,525

 

TOTAL NON-CURRENT LIABILITIES

 

11,094,644

 

 

 

12,797,255

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

77,895,524

 

 

 

76,959,945

 

 

 

 

 

 

 

 

 

STOCKHOLDER'S EQUITY

 

 

 

 

 

 

 

Common stock, $0.001 par value; 100,000,000 shares authorized; 77,648,730 and
   77,385,130 shares issued and 75,760,807 and 76,705,381 outstanding at June
   30,2022 and December 31,2021, respectively

 

77,649

 

 

 

77,385

 

Less: Treasury stock (1,887,923 shares with average price of $3.14 and 679,749
   shares with average price of $3.52 at June 30,2022 and December 31,2021,
   respectively )

 

(5,937,017

)

 

 

(2,392,203

)

Additional paid-in capital

 

450,120,903

 

 

 

449,479,461

 

Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at June
   30,2022 and December 31,2021, respectively)

 

(7,769,429

)

 

 

(4,216,102

)

Accumulated other comprehensive loss

 

(18,704,633

)

 

 

251,786

 

TOTAL KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS' EQUITY

 

417,787,473

 

 

 

443,200,327

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

1,193,600

 

 

 

-

 

TOTAL STOCKHOLDERS' EQUITY

 

418,981,073

 

 

 

443,200,327

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

496,876,597

 

 

$

520,160,272

 



KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,
2022

 

 

June 30,
2021

 

 

June 30,
2022

 

 

June 30,
2021

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES FROM UNRELATED PARTIES, NET

$

20,841,183

 

 

$

29,875,835

 

 

$

45,732,587

 

 

$

45,852,002

 

REVENUES FROM THE FORMER AFFILIATE COMPANY
   AND RELATED PARTIES, NET

 

-

 

 

 

-

 

 

 

-

 

 

 

1,587

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES, NET

 

20,841,183

 

 

 

29,875,835

 

 

 

45,732,587

 

 

 

45,853,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COST OF GOODS SOLD

 

(18,122,316

)

 

 

(23,778,053

)

 

 

(40,626,557

)

 

 

(35,401,456

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

2,718,867

 

 

 

6,097,782

 

 

 

5,106,030

 

 

 

10,452,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

(1,253,843

)

 

 

(3,564,905

)

 

 

(2,394,429

)

 

 

(25,189,502

)

Selling and marketing

 

(1,172,528

)

 

 

(1,057,517

)

 

 

(2,366,227

)

 

 

(2,204,383

)

General and administrative

 

(6,574,079

)

 

 

(5,359,572

)

 

 

(12,330,610

)

 

 

(9,789,695

)

Gain on disposal of long-lived assets

 

-

 

 

 

48,253,667

 

 

 

-

 

 

 

48,253,667

 

TOTAL OPERATING (EXPENSE) INCOME

 

(9,000,450

)

 

 

38,271,673

 

 

 

(17,091,266

)

 

 

11,070,087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(LOSS) INCOME FROM OPERATIONS

 

(6,281,583

)

 

 

44,369,455

 

 

 

(11,985,236

)

 

 

21,522,220

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

1,378,774

 

 

 

974,105

 

 

 

2,601,078

 

 

 

1,502,697

 

Interest expense

 

(138,433

)

 

 

(78,069

)

 

 

(286,577

)

 

 

(204,417

)

Change in fair value of contingent consideration

 

(391,000

)

 

 

(357,000

)

 

 

2,299,000

 

 

 

-

 

Government grants

 

463,219

 

 

 

114,402

 

 

 

707,317

 

 

 

349,195

 

Gain from sale of equity in the Former Affiliate Company

 

-

 

 

 

33,651

 

 

 

-

 

 

 

17,733,911

 

Share of loss after tax of the Former Affiliate Company

 

-

 

 

 

(4,904

)

 

 

-

 

 

 

(2,584,401

)

Other income, net

 

2,373,528

 

 

 

3,827,089

 

 

 

2,417,310

 

 

 

4,325,990

 

TOTAL OTHER INCOME , NET

 

3,686,088

 

 

 

4,509,274

 

 

 

7,738,128

 

 

 

21,122,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(LOSS) INCOME BEFORE INCOME TAXES

 

(2,595,495

)

 

 

48,878,729

 

 

 

(4,247,108

)

 

 

42,645,195

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX BENEFIT (EXPENSE)

 

719,843

 

 

 

(7,949,255

)

 

 

752,443

 

 

 

(8,118,441

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME

 

(1,875,652

)

 

 

40,929,474

 

 

 

(3,494,665

)

 

 

34,526,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LESS: NET INCOME (LOSS) ATTRIBUTABLE TO NON-
   CONTROLLING INTERESTS

 

61,619

 

 

 

-

 

 

 

58,662

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME ATTRIBUTABLE TO KANDI
   TECHNOLOGIES GROUP, INC. STOCKHOLDERS

 

(1,937,271

)

 

 

40,929,474

 

 

 

(3,553,327

)

 

 

34,526,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

(19,966,230

)

 

 

4,874,815

 

 

 

(18,956,419

)

 

 

3,698,802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE (LOSS) INCOME

$

(21,841,882

)

 

$

45,804,289

 

 

$

(22,451,084

)

 

$

38,225,556

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING BASIC AND DILUTED

 

75,863,479

 

 

 

75,510,788

 

 

 

76,075,484

 

 

 

75,447,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME PER SHARE, BASIC AND DILUTED

$

(0.02

)

 

$

0.54

 

 

$

(0.05

)

 

$

0.46

 



KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(UNAUDITED)

 

Number of
Outstanding
Shares

 

Common
Stock

 

Treasury
Stock

 

Additional
Paid-in
Capital

 

Accumulated
Deficit

 

Accumulated
Other
Comprehensive
Loss

 

Non-controlling
interests

 

Total

 

Balance, December 31, 2020

 

75,377,555

 

$

75,377

 

$

-

 

$

439,549,338

 

$

(27,079,900

)

$

(8,778,151

)

$

-

 

$

403,766,664

 

Stock issuance and award

 

10,000

 

 

10

 

 

-

 

 

22,290

 

 

-

 

 

-

 

 

-

 

 

22,300

 

Net loss

 

-

 

 

-

 

 

-

 

 

-

 

 

(6,402,720

)

 

-

 

 

-

 

 

(6,402,720

)

Foreign currency translation

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(1,176,013

)

 

-

 

 

(1,176,013

)

Reversal of reduction in the Former Affiliate
   Company’s equity (net of tax effect of $491,400)

 

-

 

 

-

 

 

-

 

 

2,771,652

 

 

-

 

 

-

 

 

-

 

 

2,771,652

 

Balance, March 31, 2021

 

75,387,555

 

$

75,387

 

$

-

 

$

442,343,280

 

$

(33,482,620

)

$

(9,954,164

)

$

-

 

$

398,981,883

 

Stock issuance and award

 

238,600

 

 

239

 

 

-

 

 

1,374,098

 

 

-

 

 

-

 

 

-

 

 

1,374,337

 

Net income

 

-

 

 

-

 

 

-

 

 

-

 

 

40,929,474

 

 

-

 

 

-

 

 

40,929,474

 

Foreign currency translation

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

4,874,815

 

 

-

 

 

4,874,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, June 30, 2021

 

75,626,155

 

$

75,626

 

$

-

 

$

443,717,378

 

$

7,446,854

 

$

(5,079,349

)

$

-

 

$

446,160,509

 


 

Number of
Outstanding
Shares

 

Common
Stock

 

Treasury
Stock

 

Additional
Paid-in
Capital

 

Accumulated
Earning
(Deficit)

 

Accumulated
Other
Comprehensive
Income

 

Non-controlling
interests

 

Total

 

Balance, December 31, 2021

 

77,385,130

 

$

77,385

 

$

(2,392,203

)

$

449,479,461

 

$

(4,216,102

)

$

251,786

 

$

-

 

$

443,200,327

 

Stock issuance and award

 

25,000

 

 

25

 

 

-

 

 

92,925

 

 

-

 

 

-

 

 

-

 

 

92,950

 

Stock buyback

 

-

 

 

-

 

 

(1,570,324

)

 

(13,236

)

 

-

 

 

-

 

 

-

 

 

(1,583,560

)

Capital contribution from shareholder

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,198,398

 

 

1,198,398

 

Net loss

 

-

 

 

-

 

 

-

 

 

-

 

 

(1,616,056

)

 

-

 

 

(2,957

)

 

(1,619,013

)

Foreign currency translation

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,009,811

 

 

-

 

 

1,009,811

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2022

 

77,410,130

 

$

77,410

 

$

(3,962,527

)

$

449,559,150

 

$

(5,832,158

)

$

1,261,597

 

$

1,195,441

 

$

442,298,913

 

Stock issuance and award

 

238,600

 

 

239

 

 

-

 

 

584,331

 

 

-

 

 

-

 

 

-

 

 

584,570

 

Stock buyback

 

-

 

 

-

 

 

(1,974,490

)

 

(22,578

)

 

-

 

 

-

 

 

-

 

 

(1,997,068

)

Net income (loss)

 

-

 

 

-

 

 

-

 

 

-

 

 

(1,937,271

)

 

-

 

 

61,619

 

 

(1,875,652

)

Foreign currency translation

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(19,966,230

)

 

(63,460

)

 

(20,029,690

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, June 30, 2022

 

77,648,730

 

$

77,649

 

$

(5,937,017

)

$

450,120,903

 

$

(7,769,429

)

$

(18,704,633

)

 

1,193,600

 

$

418,981,073

 



KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

 

Six Months Ended

 

 

June 30,
2022

 

 

June 30,
2021

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

Net (loss) income

$

(3,494,665

)

 

$

34,526,754

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

 

 

Depreciation and amortization

 

6,447,548

 

 

 

4,443,218

 

Provision (reversal) of allowance for doubtful accounts

 

4,301

 

 

 

-

 

Deferred taxes

 

(116,206

)

 

 

(11,970

)

Share of loss after tax of the Former Affiliate Company

 

-

 

 

 

2,584,401

 

Gain from equity sale in the Former Affiliate Company

 

-

 

 

 

(17,733,911

)

Gain on disposal of long-lived assets

 

-

 

 

 

(48,253,667

)

Change in fair value of contingent consideration

 

(2,299,000

)

 

 

-

 

Stock based compensation expense

 

639,690

 

 

 

1,429,456

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(9,108,858

)

 

 

2,054,930

 

Notes receivable

 

1,925,896

 

 

 

-

 

Inventories

 

(9,949,597

)

 

 

(3,328,120

)

Other receivables and other assets

 

(2,806,192

)

 

 

(14,040,619

)

Advances to supplier and prepayments and prepaid expenses

 

13,475,591

 

 

 

20,596,182

 

 

 

 

 

 

 

 

 

Increase (Decrease) In:

 

 

 

 

 

 

 

Accounts payable

 

32,751,997

 

 

 

(1,044,040

)

Other payables and accrued liabilities

 

4,198,349

 

 

 

(463,016

)

Notes payable

 

(7,788,622

)

 

 

(93,273

)

Income tax payable

 

(777,068

)

 

 

7,671,740

 

Net cash provided by (used in) operating activities

$

23,103,164

 

 

$

(11,661,935

)

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Purchases of property, plant and equipment, net

 

(1,491,918

)

 

 

(6,565,755

)

Payment for construction in progress

 

(308,304

)

 

 

(1,869,028

)

Proceeds from disposal of long-lived assets

 

-

 

 

 

23,234,680

 

Repayment from (loan to) third party

 

-

 

 

 

31,686,168

 

Certificate of deposit

 

(21,617,615

)

 

 

(54,098,335

)

Proceeds from sales of equity in the Former Affiliate Company

 

-

 

 

 

23,803,268

 

Long-term Investment

 

-

 

 

 

(108,197

)

Net cash (used in) provided by investing activities

$

(23,417,837

)

 

$

16,082,801

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Proceeds from short-term loans

 

5,070,582

 

 

 

250,000

 

Repayments of short-term loans

 

(4,570,582

)

 

 

-

 

Contribution from non-controlling shareholder

 

787,499

 

 

 

-

 

Purchase of treasury stock

 

(3,580,628

)

 

 

-

 

Net cash (used in) provided by financing activities

$

(2,293,129

)

 

$

250,000

 

 

 

 

 

 

 

 

 

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

$

(2,607,802

)

 

$

4,670,866

 

Effect of exchange rate changes

$

(6,734,387

)

 

$

997,982

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR

$

168,676,007

 

 

$

142,520,635

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

$

159,333,818

 

 

$

148,189,483

 

-CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

87,098,779

 

 

 

132,071,957

 

-RESTRICTED CASH AT END OF PERIOD

 

72,235,039

 

 

 

16,117,526

 

 

 

 

 

 

 

 

 

SUPPLEMENTARY CASH FLOW INFORMATION

 

 

 

 

 

 

 

Income taxes paid

$

140,831

 

 

 

373,433

 

Interest paid

$

102,722

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL NON-CASH DISCLOSURES:

 

 

 

 

 

 

 

Reversal of decrease in investment in the Former Affiliate Company due to change
   in its equity (net of tax effect of $491,400)

 

-

 

 

 

2,813,968

 

Increase of other receivable for equity transfer payment of the Former Affiliate Company

 

-

 

 

 

23,803,268

 

Contribution from non-controlling shareholder by inventories and fix assets

 

393,986

 

 

 

-

 


1 Includes cash, cash equivalents, restricted cash, and certificate of deposit.

2 Source: The Insight Partners, Electric Off-Road Vehicle Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Vehicle (All-Terrain Vehicle (ATV), Special Service Vehicle/Utility Terrain Vehicle (SSV/UTV), and Off-Road Motorcycles), Application (Utility, Sports, Recreation, and Military), and Geography, July 13, 2022.