First-Half Results

According to the company's Form 6-K, revenue for the six months ended June 30, 2026 was $57.1 million, up from $36.3 million. Off-road vehicles and associated parts accounted for $54.2 million of that total, an increase of 59.4%. The company attributes the growth mainly to higher off-road vehicle sales and to revenue from Rawrr, the U.S. electric off-road motorcycle brand it acquired on February 6, 2026.

Gross profit was $24.8 million, while gross margin eased to 43.5% from 45.2%. Operating expenses rose 5.3% to $19.3 million, and the company reported operating income of $5.5 million compared with an operating loss of $1.9 million in the first half of 2025. Net other income of $3.6 million, which included $3.6 million of interest income, brought pretax income to $9.1 million. Net income attributable to shareholders was $0.10 per share, compared with $0.02, on a weighted average of 96.9 million shares versus 84.8 million.

"Our North American off-road electric vehicle business was a key contributor to this growth, supported by increased sales momentum and the additional revenue contribution from Rawrr," said Chief Executive Officer Feng Chen.

The CATL Relationship

CATL, through its subsidiary QIJI Energy, operates a battery swapping program for heavy trucks, in which a station exchanges a truck's depleted battery pack for a charged one instead of recharging it in place. China Battery Exchange builds the station equipment, and QIJI is the customer. According to the company, the July order covered equipment manufacturing, delivery, site deployment and after-sales maintenance.

China Battery Exchange's work with CATL began in August 2025 under a framework procurement contract, which placed it in CATL's supplier network. In January 2026, the subsidiary signed a three-year strategic cooperation agreement to serve as a designated equipment supplier for QIJI Energy's heavy-truck battery swapping program. The first batch order under that agreement, for 18 battery swap stations, followed in July 2026.

The second batch order announced on September 28 does not disclose the number of stations, the order value or a delivery schedule. To meet demand, China Battery Exchange began production in July 2026 at a manufacturing facility in Lin'an, Zhejiang Province, with expected annual capacity of up to 200 heavy-duty truck battery swap stations. "We have received two batch orders within eight months of signing the QIJI Energy agreement," Chen said.

Balance Sheet and Other Initiatives

Cash and cash equivalents, restricted cash and certificates of deposit totaled $285.7 million at June 30, 2026, up from $211.9 million at December 31, 2025. That figure consisted of $14.6 million in cash and cash equivalents, $62.1 million in restricted cash and $209.0 million in certificates of deposit. Working capital was $189.5 million. On the other side of the balance sheet, short-term loans were $43.3 million and notes payable were $27.0 million, with total liabilities of $153.7 million against shareholders' equity of $307.7 million.

Beyond vehicles and battery swapping, Kandi agreed in June 2026 to acquire a 51% stake in Hangzhou Xinchu New Energy Technology for RMB20 million, approximately $2.9 million, entering the market for AI data center backup power and energy storage; the transaction closed in the third quarter. In July, its Hainan subsidiary signed an exclusive five-year agreement with Zhejiang Greentown Community Business Group to deploy electric sightseeing vehicles across residential communities in China. The company did not issue financial guidance, although Chen said product upgrades, new Rawrr launches and emerging businesses are expected to support growth beyond 2026.

Strategic Investment Summary

• First-Half Growth: Kandi Technologies Group, Inc. (NASDAQ: KNDI) reported first-half 2026 revenue of $57.1 million, up 57.4%, with off-road vehicles and parts contributing $54.2 million, up 59.4%.
• Return to Operating Profit: Operating income was $5.5 million against a $1.9 million loss a year earlier, and net income rose to $9.4 million, or $0.10 per share, supported by $3.6 million of interest income.
• Margin Trend: Gross margin was 43.5% compared with 45.2%, as cost of goods sold rose 62.3% on higher sales volume.
• CATL Follow-On Order: China Battery Exchange received a second batch order from CATL subsidiary QIJI Energy two months after an 18-station first batch, with no size, value or delivery schedule disclosed for the new order.
• Manufacturing Capacity: The Lin'an facility began production in July 2026 with expected capacity of up to 200 heavy-duty truck battery swap stations per year.
• Liquidity: Cash, restricted cash and certificates of deposit totaled $285.7 million at June 30, including $209.0 million in certificates of deposit, against short-term loans of $43.3 million and notes payable of $27.0 million.

Find out more about the latest corporate developments and financial reports at the Kandi investor portal.

The post Kandi Reports 57% First-Half Revenue Growth and a Second CATL Battery Swap Order appeared first on PRISM MarketView.

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