Kandi has released its financial results for the 2025 fiscal year, announcing net revenue of $87.4 million, which represents a decrease of 31.5% compared to the previous year.
The financial report indicates that the company's full-year gross margin improved significantly to 42.6%, an increase of 11.8 percentage points year-over-year, reaching the best level in recent years. Net cash provided by operating activities was $96.8 million, turning strongly positive after two consecutive years of negative figures. The total amount of cash, restricted cash, and time deposits at the end of the period reached $211.9 million.
During the earnings conference call, Kandi CEO Feng Chen stated that the company is in a critical phase where its strategic transformation is yielding results, operational quality is improving, and risks are being substantially cleared. Although revenue and profitability remain pressured by the external trade environment and internal restructuring, the significant leap in gross margin, the shift to positive operating cash flow, and ample cash reserves signal Kandi's transition towards "high-quality and stable development," with the long-term transformation rationale gradually being validated by fundamental performance.
In 2026, following the completion of its strategic transformation, Kandi will fully enter a period of performance delivery. Mr. Chen pointed out that the improvement in gross margin is primarily attributable to product mix optimization, the clearance of inventory write-downs, centralized supply chain management, and a continuously increasing proportion of high-margin off-road vehicle models. The company has comprehensively scaled back its low-margin, intensely competitive Chinese passenger electric vehicle business, concentrating resources on high-margin segments such as electric off-road vehicles, all-terrain vehicles, and golf carts, which now account for over 94% of related product revenue. Concurrently, management is proactively advancing cost leanness, with selling and administrative expenses declining reasonably in line with revenue scale, while R&D investment has grown against the trend, focusing on new product iterations and battery swap equipment technology to build a foundation for long-term competitiveness.
Furthermore, CEO Feng Chen systematically elaborated on Kandi's new strategy of "One Core, Two Growth Engines." The core is the global intelligent vehicle business (formerly the non-highway vehicle business), supported by two strategic pillars: energy swap equipment and intelligent robotics.
Regarding the core business, the company has completed the acquisition of the American high-end electric off-road motorcycle brand Rawrr, complementing its high-end product matrix. Leveraging a network of over 1,500 end stores and outdoor channel partners in North America, it has established solid channel barriers. Local assembly and warehousing bases in Texas further mitigate tariff pressures.
CEO Feng Chen indicated that in 2026, the North American UTV business will undergo a key upgrade, encompassing new model design, product experience optimization, channel efficiency improvements, and supply chain responsiveness enhancement. The company has set internal sales targets significantly higher than past levels and has brought in an external automotive design team with mass-production vehicle experience to participate in the design of the next-generation UTV products.
Concerning the second growth curve, the energy swap equipment business has entered the supply chain system of CATL, securing orders for heavy-duty truck battery swap station equipment and signing a three-year mass production cooperation agreement with CATL's subsidiary, Times Qiji, establishing a new profit growth point. Mr. Chen stated, "Based on current order visibility and production scheduling, the energy swap equipment business is certain to achieve considerable revenue in 2026."
The intelligent robotics business focuses on scenario-based implementation. The company's autonomous security inspection quadruped robot project is advancing through KH Robotics, a joint venture established with HawkRobo Systems LLC, to promote localized testing and commercial deployment preparations in North America. The first version demo is expected to be completed around June 2026. Meanwhile, the company is accelerating its global production capacity layout to enhance its resilience against uncertainties related to tariffs, trade policies, and geopolitics.
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