Kandi Technologies Group, Inc. (NASDAQ: KNDI), a long-established manufacturer of all-electric personal transportation and utility vehicles, announced its unaudited financial results for the first half of 2025. While revenue declined from the prior year period, the company delivered meaningful improvements in profitability and strengthened its balance sheet, while advancing strategic initiatives in embodied intelligence and battery swap infrastructure.
Financial Performance
Kandi reported total net revenues of $36.3 million for first half of the year, compared with $59.8 million in the same period of 2024, reflecting softer demand for off-road vehicles and EV products.
Despite lower sales, gross margin expanded significantly to 45.2%, up from 31.7% in the prior-year period. Gross profit stood at $16.4 million, compared with $19.0 million in the first half of 2024, with margin gains driven by product mix optimization, regional revenue distribution shifts, and increased sales of impaired inventory.
Operating expenses declined 21.4% year-over-year to $18.3 million, reflecting lower selling, marketing, and administrative costs, though research and development (R&D) spending increased 48.5% to $2.5 million, reflecting new investments in battery product development.
As a result, loss from operations narrowed to $1.9 million, compared with $4.4 million a year earlier. Net income was $1.7 million, down from $2.4 million in the same period of 2024.
Strong Balance Sheet
Kandi continues to maintain a solid financial position. As of June 30, 2025, the company held $256.7 million in cash, restricted cash, and certificates of deposit, up substantially from $126.3 million at year-end 2024. This liquidity provides the company with significant flexibility to fund operations, expand R&D, and pursue new market opportunities.
Strategic Developments
During the first half of 2025, Kandi advanced key growth initiatives beyond its core vehicle business:
Embodied Intelligence Expansion – Kandi entered into a strategic partnership with Deep Robotics to co-develop intelligent golf caddy robots and quadruped security patrol robots for the North American market. This fast-track entry diversifies Kandi into emerging embodied intelligence applications.
Battery Swap Infrastructure Leadership – Subsidiary China Battery Exchange (Zhejiang) Technology Co., Ltd. became a supplier in Contemporary Amperex Technology Co.’s “Ten Thousand Station Plan,” securing its first heavy-truck battery swap station equipment order. This positions Kandi as a contributor to China’s rapidly expanding EV battery swap ecosystem.
Management Commentary
Feng Chen, CEO of Kandi, stated, “In the first half of 2025, the global macroeconomic landscape remained challenging, exerting pressure on our operations. Despite these headwinds, we continued to strengthen our core off-road vehicle business through streamlined inventory management, enhanced manufacturing efficiency, and optimized sales networks. These initiatives drove a substantial improvement in gross margin to 45.2%, compared with 31.7% in the same period of 2024. At the same time, we drove our expansion into high-potential technology sectors such as embodied intelligence and battery swap infrastructure, securing multiple strategic partnerships that established a strong foundation for sustainable growth.”
Chen emphasized that with robust cash reserves, improving operational efficiency, and strategic diversification, Kandi is committed to a dual-engine strategy of maintaining stable cash flow businesses while incubating high-growth technology ventures to capture emerging opportunities and deliver long-term value for shareholders.
Outlook
With a blend of margin expansion, cash strength, and new growth initiatives, Kandi intends to leverage its strong liquidity and operational momentum to further increase R&D investment, refine its supply chain, and expand into next-generation mobility and robotics technologies.
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