Kandi Technologies Reports Full Year 2012 Financial Results and Achieved Significant Gains in EV Sales

Kandi Technologies Reports Full Year 2012 Financial Results and Achieved
Significant Gains in EV Sales

              -Q4 Revenue Increases 131.2% YoY to $26.3 Million-

           -Full Year Revenue Increases 60.6% YoY to $64.5 Million-

       -Full Year Operating Income Increases 74.9% YoY to $5.3 Million-

                 -EV sales rose 204.4% YoY to $19.0 Million-

JINHUA, China, April 1, 2013 (GLOBE NEWSWIRE) --Kandi Technologies Group,
Inc. (the 'Company' or 'Kandi') (Nasdaq:KNDI), a leading Chinese manufacturer
and developer of pure electric vehicles (EVs) and all-terrain vehicles (ATVs),
today announced its financial results for the fourth quarter and full year
ending December 31, 2012.

Full Year 2012 Highlights

  *Revenues grew 60.6% to $64.5 million from $40.2 million in 2011

    *ATV sales increased 32.0% to 6.4 million
    *Go-kart sales increased 34.3% to 30.8 million
    *EV sales significantly increased 204.4% or $12.8 million to $19.0
      million and the Company sold 3,915 units in the full year
    *Refitted car sales increased 70.5% to $3.2 million

  *Gross profit for the full year of 2012 increased 39.9% to $12.9 million
    compared to $9.2 million in 2011
  *Income from operations grew 74.9% to $5.3 million from $3.0 million in
    2011
  *GAAP net income decreased 33.6% to $6.0 million from $9.1 million in 2011
    due to a change in the fair value of financial derivatives, higher income
    tax, and an increase in general and administrative expenses, research and
    development expenses, and interest expenses in 2012
  *Non-GAAP net income* increased 3.2% to $4.2 million from $4.0 million from
    the previous year
  *Cash, cash equivalents and restricted cash totaled $28.0 million at year
    end, a 213.2% increase from $8.9 million at the end of 2011
  *Working capital surplus was $35.9 million at the end of December 31, 2012,
    an increase from a working capital surplus of $17.5 million as of December
    31, 2011

Fourth Quarter 2012 Highlights

  *Revenues rose significantly: 131.2% to $26.3 million from $11.4 million in
    the same period last year
  *Gross profit increased 82.8% to $4.5 million compared to $2.5 million in
    the fourth quarter of 2011
  *GAAP net income increased to $2.2 million from a net loss of $829,831 for
    the same period of last year

"We are very pleased about the fourth quarter of 2012 and full year financial
results. While our legacy business experienced solid growth, EV sales have
achieved a significant growth in both unit sales and revenue contributions."
Mr. Xiaoming Hu, Chief Executive Officer and Chairman of Kandi Technologies
commented, "2012 was a breakout year for Kandi, we not only launched China's
largest EV leasing program in Hangzhou, but also have negotiated new EV
expansion plans in the Shandong and Hainan markets. Kandi is now even better
prepared for the increasing EV demand from Chinese consumers and well
positioned to benefit from further government initiatives to promote electric
vehicles in China."

"We remain confident about the future growth of our EV and legacy business.
With our recent joint venture partnership with Geely Auto, we expect to become
a more fully integrated provider of pure electric vehicles to escalate our
market position," concluded by Mr. Hu.

*Non-GAAP net income is defined as excluding the change of the fair value of
financial derivatives, the effects of option related expenses, the stock award
expense, the Convertible Note's interest expense, and the effect caused by
amortization of discount on Convertible Notes. We supply non-GAAP information
because we believe it allows our investors to obtain a clearer understanding
of our operations.


KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
                                                          
                                              2012        2011
REVENUES, NET                                   $64,513,670 $40,177,148
                                                         
COST OF GOODS SOLD                              -51,620,280 -30,964,173
                                                         
GROSS PROFIT                                    12,893,390  9,212,975
Research and development                        -2,877,283  -2,304,373
Selling and marketing                           -455,983    -414,255
General and administrative                      -4,250,832  -3,458,388
INCOME FROM CONTINUING OPERATIONS               5,309,292   3,035,959
Interest income                                 2,658,104   2,200,678
Interest (expense)                              -2,775,891  -1,945,260
Government grants                               132,139     298,072
Investment income (expense) in trading security --          9,653
Other, net                                      332,936     717,495
Change in fair value of financial instruments   1,986,063   5,401,929
Investment (loss) in associated companies       -69,429     -52,696
INCOME (LOSS) BEFORE INCOME TAXES               7,573,214   9,665,830
                                                         
INCOME TAX EXPENSE                              -1,523,735  -551,060
                                                         
NET INCOME                                      6,049,479   9,114,770
                                                        
OTHER COMPREHENSIVE INCOME                                
                                                        
Foreign currency translation                    424,623     1,816,639
                                                         
COMPREHENSIVE INCOME                            $6,474,102  $10,931,409
                                                         
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC       29,439,328  27,438,725
                                                         
WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED     29,677,325  28,735,748
                                                         
NET INCOME PER SHARE, BASIC                     $0.21       $0.33
                                                         
NET INCOME PER SHARE, DILUTED                   $0.20       $0.32
See notes to consolidated financial statements             
                                                          
                                                          

KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
                                                                
ASSETS                                                          
                                                                
                                                   December31, December31,
                                                   2012         2011
                                                               
CURRENT ASSETS                                                  
Cash and cash equivalents                           $12,135,096  $2,294,352
Restricted cash                                     15,835,364   6,634,989
Accounts receivable                                 33,557,534   12,932,776
Inventories (net of reserve for slow moving
inventory of $56,248 and $72,487 as of December 31,  7,630,715    6,674,467
2012 and 2011 respectively
Notes receivable                                    9,562,429    37,879,243
Other receivables                                   501,448      2,438,917
Prepayments and prepaid expenses                    563,861      185,037
Due from employees                                  40,936       79,857
Advances to suppliers                                4,769,825    852,638
Deposit for acquisition                              24,397,967   --
Total Current Assets                                 108,995,175  69,972,276
                                                              
LONG-TERM ASSETS                                                
Plant and equipment, net                             35,725,740   20,981,893
Land use rights, net                                 14,337,691   10,992,769
Construction in progress                             --           10,007,601
Deferred taxes                                       695          89,998
Investment in associated companies                   161,507      229,213
Goodwill                                             322,591      --
Intangible assets                                    741,591      --
Total Long-Term Assets                               51,289,815   42,301,474
                                                                
TOTAL ASSETS                                         $160,284,990 $112,273,750
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                              
                                                                
                                                   December 31, December 31,
                                                   2012         2011
CURRENT LIABILITIES                                              
Accounts payable                                     $8,668,478   $5,061,069
Other payables and accrued expenses                  3,092,045    3,137,983
Short-term bank loans                                32,615,063   36,372,492
Customer deposits                                    292,389      1,025,357
Notes payable, net of discount of $0 and $71 as of   25,332,088   5,847,552
December 31, 2012 and 2011 respectively
Income tax payable                                   680,253      153,730
Due to employees                                     7,132        9,455
Due to related party                                 841,251      841,251
Deferred taxes                                       55,166       56,362
Financial derivate - liability                       1,513,013    213
Total Current Liabilities                            73,096,878   52,505,464
                                                              
LONG-TERM LIABILITIES                                           
Note payable, net of discount of $0 and $0 as of     --           --
December 31, 2012 and 2011 respectively
Bond payable                                         12,666,044   --
Financial derivatives - liability                    --           3,919,411
Total Long-Term Liabilities                          12,666,044   3,919,411
                                                                
TOTAL LIABILITIES                                    85,762,922   56,424,875
                                                                
STOCKHOLDERS' EQUITY                                            
Common stock, $0.001 par value; 100,000,000 shares
authorized; 31,696,794 and 27,445,600 shares issued  31,697       27,446
and outstanding at December 31, 2012 and December
31, 2011, respectively
Additional paid-in capital                           43,728,218   31,533,378
Retained earnings (the restricted portion is
$2,831,005 and $1,940,832 at December 31, 2012 and   25,259,809   19,210,330
December 31, 2011, respectively)
Accumulated other comprehensive income               5,502,344    5,077,721
TOTAL STOCKHOLDERS' EQUITY                           74,522,068   55,848,875
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY           $160,284,990 $112,273,750
See notes to consolidated financial statements                    
                                                                 
                                                                 

KANDI TECHNOLOGIES GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
                                                                 
                                                     2012        2011
CASH FLOWS FROM OPERATING ACTIVITIES:                             
Net income                                             $6,049,479  $9,114,770
Adjustments to reconcile net income to net cash provided by        
operating activities:
Depreciation and amortization                          4,978,626   4,696,848
Asset impairments                                      465,199     --
Deferred taxes                                         92,521      207,327
Change in value of financial instruments               -1,986,063  -5,401,929
Loss in investment (including investment in associated 69,429      52,696
company)
Notes and warrant issuance payments                    --          --
Option cost                                            19,053      252,632
                                                                
Changes in operating assets and liabilities, net of effects of     
acquisition:
(Increase) Decrease In:                                           
Accounts receivable                                    -20,513,099 4,647,184
Inventories                                            -904,355    -550,024
Other receivables                                      1,955,055   -1,566,603
Due from employees                                     37,117      -45,096
Prepayments and prepaid expenses                       -4,285,489  -730,321
Marketable equity securities (trading)                 --          307,098
                                                                
Increase (Decrease) In:                                           
Accounts payable                                       3,566,354   -1,614,496
Other payables and accrued liabilities                 -50,333     2,326,656
Customer deposits                                      -740,419    924,241
Income tax payable                                     525,030     21,087
Net cash (used in) provided by operating activities    -10,721,895 12,642,070
                                                                
CASH FLOWS FROM INVESTING ACTIVITIES:                             
Purchases of plant and equipment                       -19,150,867 -646,143
Change of construction in progress                     10,078,637  -9,839,388
Deposit for acquisition                                -24,383,529 --
Issuance of notes receivable                           -1,011,821  -22,992,866
Repayments of notes receivable                         29,603,171  11,147,503
Cash acquired in acquisition                           112,551     --
Net cash provided by (used in) investing activities    -4,751,858  -22,330,894
Restricted cash                                        -9,143,907  11,246,288
Proceeds from short-term bank loans                    41,504,215  48,891,560
Repayments of short-term bank loans                    -45,539,128 -42,171,867
Proceeds from notes payable                            40,491,531  35,562,160
Repayments of notes payable                            -21,063,559 -49,260,448
Proceeds from bond payable                             12,658,548  --
Option exercise & other financing                      1,258,231   65,544
Warrant exercise                                       1,672,739   --
Common stock issued, net of cost of capital            3,784,149   --
Net cash provided by financing activities              25,622,819  4,333,237
                                                                
NET DECREASE IN CASH AND CASH EQUIVALENTS              10,149,066  -5,355,587
Effect of exchange rate changes on cash                -308,322    -104,227
Cash and cash equivalents at beginning of year         2,294,352   7,754,166
CASH AND CASH EQUIVALENTS AT END OF YEAR               $12,135,096 $2,294,352
                                                                
SUPPLEMENTARY CASH FLOW INFORMATION                               
Income taxes paid                                      $998,706    $529,973
Interest paid                                          $2,570,691  $2,509,808
Issuance of Common stock for acquisition               $8,616,416  $--
                                                                 

About Kandi Technologies Group, Inc.

Kandi Technologies Group, Inc. (Nasdaq:KNDI) is a manufacturer and exporter of
a variety of vehicles in China, making it a world leader in the production of
popular off-road vehicles (ORVs). It also ranks among the leading
manufacturers in China of all-terrain vehicles (ATVs), specialized utility
vehicles (UTVs), and a recently introduced second-generation high mileage,
two-seat three-wheeled motorcycle. Another major company focus has been on the
manufacture and sale of the COCO electric vehicle (EV), a highly economical,
beautifully designed, all-electric super mini-car for neighborhood driving and
commuting. The convertible and hardtop models of the COCO EV are available in
the United States and other countries, while the Chinese government has
approved the sale of Kandi EVs in China since 2010. More information can be
viewed at its corporate website is http://www.kandivehicle.com/.

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 securities laws, the Company does not assume a duty to
update these forward-looking statements.

CONTACT: Kandi Technologies Group, Inc.
         China:
         Email: IR@kandigroup.com
         Phone: 86-579-82239856
        
         U.S.A.:
         Email: IR@kandigroup.com
         Phone: 1-212-551-3610