Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) has announced its financial results for the second quarter of 2023. The company reported total revenues of $36.0 million, representing a 72.5% increase compared to the same period in 2022. Gross profit for the quarter was $13.7 million, with a gross margin of 38.2%. This is a significant improvement from the gross profit of $2.7 million and gross margin of 13.0% in the second quarter of 2022. Net income for the quarter was $4.4 million, or $0.06 income per fully diluted share, compared to a net loss of $1.9 million in the same period last year.
Kandi Technologies Group, Inc. CEO, Dr. Xueqin Dong, expressed satisfaction with the company's performance, stating that their efforts in product transformation have led to a successful turnaround from losses to profits. The company's all-electric off-road vehicles have been a driving force behind their sales recovery and return to profitability. Dr. Dong also mentioned the immense potential in the US off-road vehicle market and the company's dedication to expanding their product offerings to meet customer demands.
The company's focus on innovation, production, and commercialization of electric off-road vehicles has contributed to the increase in net revenues. Sales of off-road vehicles and associated parts have achieved the largest proportion ever of quarterly sales. The greater profitability of off-road vehicles, particularly crossover golf carts, has led to an improvement in gross margin compared to the same period last year.
Operating expenses for the second quarter of 2023 increased to $14.0 million, compared to $9.0 million in the same period of 2022. However, higher gross profits resulted in an improvement in operating income. The increase in operating expenses can be attributed to higher sales and marketing expenses associated with the growing number of electric off-road vehicles exported to the US market, as well as higher general and administration expenses.
Net income for the quarter was $4.4 million, a significant improvement compared to a net loss of $1.9 million in the same period last year. The better gross margins were the primary factor contributing to the swing to profit.
Kandi Technologies Group, Inc. has scheduled a conference call and live webcast to discuss its financial results on August 8, 2023. The call will include prepared remarks from management, followed by a question-and-answer session.
Kandi Technologies Group, Inc., headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. The company conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd., and its subsidiaries. Kandi Technologies Group has established itself as one of China's leading manufacturers of pure electric vehicle parts and off-road vehicles.
This press release contains certain forward-looking statements, and the company's actual results could differ materially from those anticipated. The company does not assume a duty to update these forward-looking statements.