Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Jun. 01, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Kandi Technologies Group, Inc. | |
Entity Central Index Key | 0001316517 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 52,849,441 | |
Entity File Number | 001-33997 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 3,719,142 | $ 5,490,557 |
Restricted cash | 6,034,751 | 11,022,078 |
Accounts receivable (net of allowance for doubtful accounts of $250,325 and $254,665 as of March 31, 2020 and December 31, 2019, respectively) | 53,896,084 | 61,181,849 |
Inventories | 30,172,551 | 27,736,566 |
Notes receivable | 42,487,225 | |
Other receivables | 44,265,730 | 5,019,971 |
Prepayments and prepaid expense | 10,407,639 | 10,615,063 |
Amount due from the Affiliate Company, net | 20,026,310 | 31,330,763 |
Other current assets | 8,910,217 | 688,364 |
TOTAL CURRENT ASSETS | 177,432,424 | 195,572,436 |
LONG-TERM ASSETS | ||
Property, plant and equipment, net | 71,391,249 | 74,407,858 |
Intangible assets | 3,442,513 | 3,654,772 |
Land use rights, net | 11,000,953 | 11,272,815 |
Investment in the Affiliate Company | 45,337,659 | 47,228,614 |
Goodwill | 27,905,037 | 28,270,400 |
Other long term assets | 10,473,979 | 10,811,501 |
TOTAL Long-Term Assets | 169,551,390 | 175,645,960 |
TOTAL ASSETS | 346,983,814 | 371,218,396 |
CURRENT LIABILITIES | ||
Accounts payable | 58,128,742 | 72,093,940 |
Other payables and accrued expenses | 5,021,303 | 6,078,041 |
Short-term loans | 33,861,956 | 25,980,364 |
Notes payable | 2,962,921 | 10,765,344 |
Income tax payable | 1,761,101 | 1,796,601 |
Long term bank loans - current portion | 13,544,782 | 13,779,641 |
Other current liability | 1,480,193 | 1,379,808 |
Total Current Liabilities | 116,760,998 | 131,873,739 |
LONG-TERM LIABILITIES | ||
Long term bank loans | 14,109,148 | 14,353,792 |
Deferred taxes liability | 1,362,786 | 1,362,786 |
Contingent consideration liability | 1,405,000 | 5,197,000 |
Other long-term liability | 564,366 | 574,152 |
Total Long-Term Liabilities | 17,441,300 | 21,487,730 |
TOTAL LIABILITIES | 134,202,298 | 153,361,469 |
STOCKHOLDER'S EQUITY | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 56,273,102 and 56,263,102 shares issued and 52,849,441 and 52,839,441 outstanding at March 31,2020 and December 31,2019, respectively | 52,849 | 52,839 |
Less: Treasury stock (487,155 shares with average price of $5.09 at March 31, 2020 and December 31, 2019, respectively) | (2,477,965) | (2,477,965) |
Additional paid-in capital | 259,713,660 | 259,691,370 |
Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at March 31,2020 and December 31,2019, respectively) | (18,260,382) | (16,685,736) |
Accumulated other comprehensive loss | (26,246,646) | (22,723,581) |
TOTAL STOCKHOLDERS' EQUITY | 212,781,516 | 217,856,927 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 346,983,814 | $ 371,218,396 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts | $ 250,325 | $ 254,665 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 56,273,102 | 56,263,102 |
Common stock, outstanding | 52,849,441 | 52,849,441 |
Treasury stock, average price | $ 5.09 | $ 0 |
Treasury stock, shares | 487,155 | 487,155 |
Accumulated deficit restricted portion | $ 4,422,033 | $ 4,422,033 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
REVENUES FROM UNRELATED PARTY, NET | $ 6,372,424 | $ 16,334,963 |
REVENUES FROM THE AFFILIATE COMPANY AND RELATED PARTY, NET | 1,733,497 | |
REVENUES, NET | 6,372,424 | 18,068,460 |
COST OF GOODS SOLD | (5,205,165) | (14,932,023) |
GROSS PROFIT | 1,167,259 | 3,136,437 |
OPERATING EXPENSES: | ||
Research and development | (640,240) | (537,433) |
Selling and marketing | (878,306) | (618,003) |
General and administrative | (3,066,735) | (2,039,528) |
Total Operating Expenses | (4,585,281) | (3,194,964) |
LOSS FROM OPERATIONS | (3,418,022) | (58,527) |
OTHER INCOME (EXPENSE): | ||
Interest income | 338,944 | 252,404 |
Interest expense | (982,934) | (439,183) |
Change in fair value of contingent consideration | 3,792,000 | 89,000 |
Government grants | 11,099 | 47,724 |
Gain from equity dilution in the Affiliate Company | 4,365,390 | |
Share of loss after tax of the Affiliate Company | (1,102,770) | (9,949,158) |
Other income, net | 19,650 | 474,390 |
Total other income (expense), net | 2,075,989 | (5,159,433) |
LOSS BEFORE INCOME TAXES | (1,342,033) | (5,217,960) |
INCOME TAX (EXPENSE) BENEFIT | (232,613) | 808,488 |
NET LOSS | (1,574,646) | (4,409,472) |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Foreign currency translation | (3,523,065) | 5,404,028 |
COMPREHENSIVE INCOME (LOSS) | $ (5,097,711) | $ 994,556 |
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 52,361,077 | 51,565,287 |
WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 52,361,077 | 51,565,287 |
NET LOSS PER SHARE, BASIC | $ (0.03) | $ (0.09) |
NET LOSS PER SHARE, DILUTED | $ (0.03) | $ (0.09) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total |
Balance at Dec. 31, 2018 | $ 51,484 | $ 254,989,657 | $ (9,497,009) | $ (19,921,258) | $ 225,622,874 | |
Balance, shares at Dec. 31, 2018 | 51,484,444 | |||||
Stock issuance and award | $ 1,097 | 3,387,379 | 3,388,476 | |||
Stock issuance and award, shares | 1,096,397 | |||||
Net loss | (4,409,472) | (4,409,472) | ||||
Foreign currency translation | 5,404,028 | 5,404,028 | ||||
Balance at Mar. 31, 2019 | $ 52,581 | 258,377,036 | (13,906,481) | (14,517,230) | 230,005,906 | |
Balance, shares at Mar. 31, 2019 | 52,580,841 | |||||
Balance at Dec. 31, 2019 | $ 52,839 | (2,477,965) | 259,691,370 | (16,685,736) | (22,723,581) | 217,856,927 |
Balance, shares at Dec. 31, 2019 | 52,839,441 | |||||
Stock issuance and award | $ 10 | 22,290 | 22,300 | |||
Stock issuance and award, shares | 10,000 | |||||
Net loss | (1,574,646) | (1,574,646) | ||||
Foreign currency translation | (3,523,065) | (3,523,065) | ||||
Balance at Mar. 31, 2020 | $ 52,849 | $ (2,477,965) | $ 259,713,660 | $ (18,260,382) | $ (26,246,646) | $ 212,781,516 |
Balance, shares at Mar. 31, 2020 | 52,849,441 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flow (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,574,646) | $ (4,409,472) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 2,037,045 | 2,258,224 |
Impairments | 24,316 | (31,718) |
Allowance for doubtful accounts | 15,629 | |
Share of loss after tax of the Affiliate Company | 1,102,770 | 9,949,158 |
Gain from equity dilution in the Affiliate Company | (4,365,390) | |
Change in fair value of contingent consideration | (3,792,000) | (89,000) |
Stock compensation cost | 22,925 | 31,675 |
(Increase) Decrease In: | ||
Accounts receivable | 5,540,503 | (17,991,854) |
Notes receivable | 74,114 | |
Notes receivable from the Affiliate Company and related party | 444,682 | |
Inventories | (2,955,178) | (4,659,780) |
Other receivables and other assets | (8,734,544) | (14,278,768) |
Advances to supplier and prepayments and prepaid expenses | (8,311,506) | 436,768 |
Amount due from the Affiliate Company | 4,187,038 | (2,339,431) |
Increase (Decrease) In: | ||
Accounts payable | (2,575,446) | 22,593,966 |
Other payables and accrued liabilities | (781,409) | 5,484,913 |
Notes payable | (10,745,294) | (5,624,153) |
Income tax payable | 29,357 | (1,537,204) |
Net cash used in operating activities | (26,526,069) | (14,037,641) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment, net | (1,355) | (300,704) |
Cash received from equity sale in the Affiliate Company | 11,461,646 | |
Net cash provided by (used in) investing activities | 11,460,291 | (300,704) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term bank loans | 8,452,964 | 2,816,317 |
Repayments of short-term bank loans | (2,816,317) | |
Net cash provided by financing activities | 8,452,964 | |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (6,612,814) | (14,338,345) |
Effect of exchange rate changes on cash | (145,928) | 446,948 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 16,512,635 | 22,353,071 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 9,753,893 | 8,461,674 |
-CASH AND CASH EQUIVALENTS AT END OF PERIOD | 3,719,142 | 3,327,013 |
-RESTRICTED CASH AT END OF PERIOD | 6,034,751 | 5,134,661 |
SUPPLEMENTARY CASH FLOW INFORMATION | ||
Income taxes paid | 203,256 | 594,425 |
Interest paid | $ 345,170 | $ 439,183 |
Organization and Principal Acti
Organization and Principal Activities | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES Kandi Technologies Group, Inc. ("Kandi Technologies") was incorporated under the laws of the State of Delaware on March 31, 2004. As used herein, the terms "Company" or "Kandi" refer to Kandi Technologies and its operating subsidiaries, as described below. Headquartered in Jinhua City, Zhejiang Province, People's Republic of China ("China" or "PRC"), the Company is one of China's leading producers and manufacturers of electric vehicle ("EV") products (through the Affiliate Company, formerly defined as the JV Company), EV parts, and off-road vehicles for sale in the Chinese and the global markets. The Company conducts its primary business operations through its wholly-owned subsidiaries, Zhejiang Kandi Vehicles Co., Ltd. ("Kandi Vehicles"), Kandi Vehicles' wholly and partially-owned subsidiaries, and SC Autosports LLC ("SC Autosports"). The Company's organizational chart as of the date of this report is as follows: The Company's original primary business operations consist of designing, developing, manufacturing and commercializing EV products (through Kandi Electric Vehicles (Hainan) Co., Ltd. and the Affiliate Company), EV parts and off-road vehicles. The COVID outbreak has seriously impacted the EV market in 2020, as a result, the Company plans to manufacture and sell a number of ancillary products aimed at the dynamic power train system of intelligent transportation. For example, the dynamic power train system of Electric Scooters and Electric Self-Balancing Vehicles. The Company is pursuing these opportunities by expanding production of intelligent transportation products that exploit its advantages in the Yongkang Scrou Electric Co, Ltd.'s power electric motor and Jinhua Ankao's power battery pack. Its products aimed at this market combines the Company's motors and battery packs into a dynamic power train system. As part of its strategic objective of becoming a leading manufacturer of EV products (through the Affiliate Company) and related services, in the future, the Company will increase its focus on pure EV-related products and intelligent transportation dynamic power train system, and is actively pursuing expansion in the domestic and foreign markets. |
Liquidity
Liquidity | 3 Months Ended |
Mar. 31, 2020 | |
Liquidity [Abstract] | |
LIQUIDITY | NOTE 2 - LIQUIDITY The Company had a working capital of $60,671,426 as of March 31, 2020, a decrease of $3,027,271 from a working capital of $63,698,697 as of December 31, 2019. As of March 31, 2020 and December 31, 2019, the Company's cash and cash equivalents were $3,719,142 and $5,490,557, respectively, the Company's restricted cash was $6,034,751 and $11,022,078, respectively. After two years of negotiations, on March 10, 2020, a real estate repurchase agreement (the "Repurchase Agreement") was entered into by and between Kandi Vehicles and Jinhua Economic and Technological Development Zone pursuant to which the local government shall purchase the land use right over the land of 66 acres (400 mu, 265,029 square meters) that is owned by Kandi Vehicles for RMB 525 million ($75 million). Payments to Kandi Vehicles shall be made in three installments as the Company disclosed in a Current Report on Form 8-K filed with the SEC on March 9, 2020. In addition, if Kandi Vehicles achieves certain milestones that contribute to local economic development, the Company will be eligible for tax rebates that could total up to RMB 500 million ($71 million) over the next eight years. Kandi Vehicles intends to use the proceeds from the land repurchase to fund the land use acquisition and factory construction in the New Energy Automotive Zone, and to fund growth initiatives and general corporate purposes. Although the Company expects that most of its outstanding trade receivables from customers will be collected in the next twelve months, there are uncertainties with respect to the timing in collecting these receivables, especially the receivables due from the Affiliate Company, because most of them are indirectly impacted by the progress of the receipt of government subsidies. The Company's primary need for liquidity stems from its need to fund working capital requirements of the Company's businesses, its capital expenditures and its general operations, including debt repayment. The Company has historically financed its operations through short-term commercial bank loans from Chinese banks, as well as its ongoing operating activities by using funds from operations, external credit or financing arrangements. The Company routinely monitors current and expected operational requirements and financial market conditions to evaluate the use of available financing sources. Considering the existing working capital position and the ability to access debt funding sources, the management believes that the Company's operations and borrowing resources are sufficient to provide for its current and foreseeable capital requirements to support its ongoing operations for the next twelve months. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation [Abstract] | |
BASIS OF PRESENTATION | NOTE 3 - BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. In the management’s opinion, the interim financial statements reflect all normal adjustments that are necessary to provide a fair presentation of the financial results for the interim periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for an entire fiscal year. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated financial statements as of such date. For a more complete understanding of the Company’s business, financial position, operating results, cash flows, risk factors and other matters, please refer to its Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the “2019 Form 10-K”). |
Principles of Consolidation
Principles of Consolidation | 3 Months Ended |
Mar. 31, 2020 | |
Principles of Consolidation [Abstract] | |
PRINCIPLES OF CONSOLIDATION | NOTE 4 - PRINCIPLES OF CONSOLIDATION The Company’s consolidated financial statements reflect the accounts of the Company and its ownership interests in the following subsidiaries: (1) Continental Development Limited (“Continental”), a wholly-owned subsidiary of the Company, incorporated under the laws of Hong Kong; (2) Kandi Vehicles, a wholly-owned subsidiary of Continental, incorporated under the laws of the PRC; (3) Kandi New Energy Vehicle Co. Ltd. (“Kandi New Energy”), a 50%-owned subsidiary of Kandi Vehicles (Mr. Hu Xiaoming owns the other 50%), incorporated under the laws of the PRC. Pursuant to agreements executed in January 2011, Mr. Hu Xiaoming contracted with Kandi Vehicles for the operation and management of Kandi New Energy and put his shares of Kandi New Energy into escrow. As a result, Kandi Vehicles is entitled to 100% of the economic benefits, voting rights and residual interests of Kandi New Energy; (4) Yongkang Scrou Electric Co, Ltd. (“Yongkang Scrou”), a wholly-owned subsidiary of Kandi Vehicles, incorporated under the laws of the PRC; (5) Kandi Electric Vehicles (Hainan) Co., Ltd. (“Kandi Hainan”), a subsidiary, 10% owned by Kandi New Energy and 90% owned by Kandi Vehicles, incorporated under the laws of the PRC; and (6) Jinhua An Kao Power Technology Co., Ltd. (“Jinhua An Kao”), a wholly-owned subsidiary of Kandi Vehicles, incorporated under the laws of the PRC. (7) SC Autosports, a wholly-owned subsidiary of the Company formed under the laws of the State of Texas. Equity Method Investees The Company’s consolidated net income also includes the Company’s proportionate share of the net income or loss of its equity method investees as follows: The Affiliate Company, a 22% owned subsidiary of Kandi Vehicles and its subsidiaries All intra-entity profits and losses with regard to the Company’s equity method investees have been eliminated. |
Use of Estimates
Use of Estimates | 3 Months Ended |
Mar. 31, 2020 | |
Use of Estimates [Abstract] | |
USE OF ESTIMATES | NOTE 5 - USE OF ESTIMATES The preparation of financial statements in conformity with U.S. GAAP requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Management makes these estimates using the best information available at the time the estimates are made; however actual results when ultimately realized could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 6 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our significant accounting policies are detailed in "Note 6 - Summary of Significant Accounting Policies" of the Company 2019 Form 10-K, excepting the following. (v) Reclassification Certain reclassifications have been made to the condensed consolidated statements of cash flows for three months ended March 31, 2019 to conform to the presentation of consolidated financial statement for three months ended March 31, 2020. The Company reclassified the following 1) grouping due from employees into other receivables and other assets; 2) grouping customer deposits and deferred income into other payables and accrued liabilities. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NOTE 7 - NEW ACCOUNTING PRONOUNCEMENTS In February 2018, the FASB released ASU 2018-2, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This standard update addresses a specific consequence of the Tax Cuts and Jobs Act (the “Tax Act”) and allows a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the Tax Act. Consequently, the update eliminates the stranded tax effects that were created as a result of the historical U.S. federal corporate income tax rate to the newly enacted U.S. federal corporate income tax rate. The Company is required to adopt this standard in the first quarter of fiscal year 2020, with early adoption permitted. The amendments in this update should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company adopted this ASU in the first quarter of 2020 and the new standard did not have a material impact on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds, and modifies certain disclosure requirements for fair value measurements under ASC 820. This ASU is to be applied on a prospective basis for certain modified or new disclosure requirements, and all other amendments in the standard are to be applied on a retrospective basis. The new standard is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted this ASU in the first quarter of 2020 and the new standard did not have a material impact on the consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities, Investments—Equity Method and Joint Ventures, and Derivatives and Hedging, which clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. This guidance will be effective in the first quarter of 2021 on a prospective basis, with early adoption permitted. The Company are currently evaluating the impact of the new guidance and do not expect the adoption of this guidance will have a material impact on the consolidated financial statements. |
Concentrations
Concentrations | 3 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 8 - CONCENTRATIONS (a) Customers For the three-month period ended March 31, 2020, the Company’s major customers, each of whom accounted for more than 10% of the Company’s consolidated revenue, were as follows: Sales Trade Receivable Three Months Three Months Ended Ended March 31, March 31, March 31, December 31, Major Customers 2020 2019 2020 2019 Customer A 33 % 61 % 66 % 55 % Customer B 14 % 7 % 4 % 5 % (b) Suppliers For the three-month period ended March 31, 2020, the Company’s material suppliers, each of whom accounted for more than 10% of the Company’s total purchases, were as follows: Purchases Accounts Payable Three Months Three Months Ended Ended March 31, March 31, March 31, December 31, Major Suppliers 2020 2019 2020 2019 Zhejiang Kandi Supply Chain Management Co., Ltd. 60 % 12 % 7 % 8 % Supplier C 27 % 20 % - - |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 9 - EARNINGS (LOSS) PER SHARE The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share are computed using the weighted average number of shares outstanding during the reporting period. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding stock options and warrants (using treasury stock method). Due to the average market price of the common stock during the period below the exercise price of the options and due to the loss from operations, approximately 3,900,000 options were excluded from the calculation of diluted net loss per share, for the three-month period ended March 31, 2020. The following is the calculation of earnings per share for the three-month periods ended March 31, 2020 and 2019: For three months ended March 31, 2020 2019 Net loss $ (1,574,646 ) $ (4,409,472 ) Weighted average shares used in basic computation 52,361,077 51,565,287 Dilutive shares - - Weighted average shares used in diluted computation 52,361,077 51,565,287 Loss per share: Basic $ (0.03 ) $ (0.09 ) Diluted $ (0.03 ) $ (0.09 ) |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 10 - ACCOUNTS RECEIVABLE Accounts receivable are summarized as follows: March 31, December 31, 2020 2019 Accounts receivable $ 54,146,409 $ 61,436,514 Less: allowance for doubtful accounts (250,325 ) (254,665 ) Accounts receivable, net $ 53,896,084 $ 61,181,849 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 11 - INVENTORIES Inventories are summarized as follows: March 31, December 31, 2020 2019 Raw material $ 12,322,568 $ 12,127,957 Work-in-progress 7,010,026 4,545,736 Finished goods 10,839,957 11,062,873 Inventories $ 30,172,551 $ 27,736,566 |
Notes Receivable
Notes Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
NOTES RECEIVABLE | NOTE 12 - NOTES RECEIVABLE As of March 31, 2020, there was $0 notes receivable from unrelated parties. As of December 31, 2019, there was $42,487,225 notes receivable from unrelated parties, which was commercial acceptance notes from payments for equity transfer of the Affiliate Company , among which $11,287,319 had been collected during first quarter of 2020 and the rest were considered as other receivables (refer to Note 22-summarized information of equity method investment in the Affiliate Company). |
Other Receivables
Other Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
OTHER RECEIVABLES | NOTE 13 - OTHER RECEIVABLEs Other receivables consist of the following: March 31, December 31, 2020 2019 Amount due from unrelated party for equity transfer of the Affiliate Company $ 30,475,760 $ - Loan to third party 12,242,967 3,577,145 Others 1,547,003 1,442,826 Total other receivables $ 44,265,730 $ 5,019,971 As of March 31, 2020, the Company's other receivable includes $30,475,760 amount due from unrelated party for equity transfer of the Affiliate Company (refer to Note 22-summarized information of equity method investment in the Affiliate Company). As of March 31, 2020 and December 31, 2019, the Company's other receivable includes $12,242,967 and $3,577,145 short-term loan lent to an unrelated party with a 6% annual interest rate to maximize the use of idled cash. This loan can be redeemed at any time. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 14 - PROPERTY, PLANT AND EQUIPMENT, NET Property, plants and equipment as of March 31, 2020 and December 31, 2019, consisted of the following: March 31, December 31, 2020 2019 At cost: Buildings $ 29,929,525 $ 30,447,480 Machinery and equipment 61,897,255 62,973,794 Office equipment 1,032,286 1,048,651 Motor vehicles and other transport equipment 411,131 413,046 Molds and others 25,395,892 25,836,241 118,666,089 120,719,212 Less : Accumulated depreciation Buildings $ (6,126,391 ) $ (5,975,030 ) Machinery and equipment (15,287,411 ) (14,127,506 ) Office equipment (570,337 ) (537,829 ) Motor vehicles and other transport equipment (362,041 ) (360,098 ) Molds and others (24,928,660 ) (25,310,891 ) (47,274,840 ) (46,311,354 ) Property, plant and equipment, net $ 71,391,249 $ 74,407,858 As of March 31, 2020 and December 31, 2019, the net book value of property, plant and equipment pledged as collateral for the Company's bank loans totaled $7,342,859 and $6,484,497, respectively. Also see Note 17. Depreciation expenses for the three months ended March 31, 2020 and 2019 were $1,780,152 and $2,015,459, respectively. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 15 - INTANGIBLE ASSETS Intangible assets include acquired other intangibles of trade name, customer relations and patent recorded at estimated fair values in accordance with purchase accounting guidelines for acquisitions. The following table provides the gross carrying value and accumulated amortization for each major class of our intangible assets, other than goodwill: Remaining March 31, December 31, useful life 2020 2019 Gross carrying amount: Trade name 1.75 years $ 492,235 $ 492,235 Customer relations 1.75 years 304,086 304,086 Patent 5.25-6.92 years 4,486,709 4,564,506 5,283,030 5,360,827 Less : Accumulated amortization Trade name $ (401,740 ) $ (389,053 ) Customer relations (248,179 ) (240,342 ) Patent (1,190,598 ) (1,076,660 ) (1,840,517 ) (1,706,055 ) Intangible assets, net $ 3,442,513 $ 3,654,772 The aggregate amortization expenses for those intangible assets were $154,856 and $159,503 for the three months ended March 31, 2020 and 2019, respectively. Amortization expenses for the next five years and thereafter are as follows: 2020 (Nine months) $ 464,567 2021 619,422 2022 540,063 2023 537,327 2024 537,327 Thereafter 743,807 Total $ 3,442,513 |
Land Use Rights,Net
Land Use Rights,Net | 3 Months Ended |
Mar. 31, 2020 | |
Land Use Rights [Abstract] | |
LAND USE RIGHTS, NET | NOTE 16 - LAND USE RIGHTS, NET The Company’s land use rights consist of the following: March 31, December 31, 2020 2019 Cost of land use rights $ 14,480,760 $ 14,731,847 Less: Accumulated amortization (3,479,807 ) (3,459,032 ) Land use rights, net $ 11,000,953 $ 11,272,815 As of March 31, 2020 and December 31, 2019, the net book value of land use rights pledged as collateral for the Company’s bank loans was $4,816,684 and $4,937,138, respectively. Also see Note 17. The amortization expenses for the three months ended March 31, 2020 and 2019, were $80,961 and $83,762, respectively. Amortization expenses for the next five years and thereafter is as follows: 2020 (Nine months) $ 242,883 2021 323,844 2022 323,844 2023 323,844 2024 323,844 Thereafter 9,462,694 Total $ 11,000,953 |
Short-Term and Long-Term Bank L
Short-Term and Long-Term Bank Loans | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
SHORT-TERM AND LONG-TERM BANK LOANS | NOTE 17 - SHORT-TERM AND LONG-TERM BANK LOANS Short-term loans are summarized as follows: March 31, December 31, 2020 2019 Bank A Interest rate 5.66% per annum, paid off on May 22, 2020, secured by the assets of Kandi Vehicle, also guaranteed by company's subsidiaries. Also see Note 14 and Note 16. 6,885,264 7,004,650 Interest rate 5.66% per annum, paid off on May 22, 2020, secured by the assets of Kandi Vehicle, also guaranteed by company's subsidiaries. Also see Note 14 and Note 16. 4,543,146 4,621,921 Interest rate 4.05% per annum, paid off on May 22, 2020, secured by the deposit of Kandi Vehicle. Also see Note 14 and Note 16. 2,680,738 - Bank B Interest rate 5.22% per annum, paid off on April 22, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. 5,643,659 5,741,517 Interest rate 5.22% per annum, paid off on April 24, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. 4,232,745 4,306,138 Interest rate 5.22% per annum, paid off on April 26, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. 4,232,745 4,306,138 Interest rate 4.79% per annum, paid off on May 22, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. 5,643,659 - $ 33,861,956 $ 25,980,364 Long-term loans are summarized as follows: March 31, December 31, 2020 2019 Bank C Interest rate 7% per annum, due on December 12, 2021, guaranteed by the Company's subsidiaries. 27,653,930 28,133,433 Long term bank loans - current and noncurrent portion $ 27,653,930 28,133,433 The interest expenses of short-term and long-term bank loans for the three months ended March 31, 2020 and 2019 were $842,049 and $439,183, respectively. As of March 31, 2020, the aggregate amount of short-term and long-term loans guaranteed by various third parties was $0. |
Taxes
Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 18 - TAXES (a) Corporation Income Tax Pursuant to the tax laws and regulations of the PRC, the Company's applicable corporate income tax ("CIT") rate is 25%. However, Kandi Vehicles and Jinhua Ankao qualify as High and New Technology Enterprise ("HNTE") companies in the PRC, and are entitled to pay a reduced income tax rate of 15% for the years presented. A HNTE Certificate is valid for three years. An entity may re-apply for an HNTE certificate when the prior certificate expires. Historically, Kandi Vehicles has successfully re-applied for such certificates when the its prior certificates expired. Jinhua Ankao has been qualified as HNTE since 2018. Therefore no records for renewal are available. The applicable CIT rate of each of the Company's three other subsidiaries, Kandi New Energy, Yongkang Scrou and Kandi Hainan, the Affiliate Company and its subsidiaries is 25%. The Company's tax provision or benefit from income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the management makes a cumulative adjustment. For 2019, the management estimates that its effective tax rate will be favorably affected by non-taxable income such as the share of income of the Affiliate Company and the gain from the change of fair value of contingent liabilities and certain research and development super-deduction and adversely affected by non-deductible expenses such as part of entertainment expenses. The Company records valuation allowances against the deferred tax assets associated with losses for which it may not realize a related tax benefit. After combining research and development tax credits of 25% on certain qualified research and development expenses, the Company's effective tax rate for the three months ended March 31, 2020 and 2019 were a tax expense of 17.33% on a reported loss before taxes of approximately $1.3 million, a tax benefit of 15.49% on a reported loss before taxes of approximately $5.2 million, respectively. The quarterly tax provision, and the quarterly estimate of the Company's annual effective tax rate, is subject to significant variation due to several factors, including variability in accurately predicting the Company's pre-tax and taxable income and loss, acquisitions (including integrations) and investments, changes in its stock price, changes in its deferred tax assets and liabilities and their valuation, return to provision true-up, foreign currency gains (losses), changes in regulations and interpretations related to tax, accounting, and other areas. Additionally, the Company's effective tax rate can be more or less volatile based on the amount of pre-tax income or loss. The income tax provision for the three months ended March 31, 2020 and 2019 was tax expense of $232,613 and tax benefit of $808,488, respectively. Under ASC 740 guidance relating to uncertain tax positions, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of March 31, 2020, the Company did not have any liability for unrecognized tax benefits. The Company files income tax returns with the U.S. Internal Revenue Services ("IRS") and those states where the Company has operations. The Company is subject to U.S. federal or state income tax examinations by the IRS and relevant state tax authorities for years after 2006. During the periods open to examination, the Company has net operating loss carry forwards ("NOLs") for U.S. federal and state tax purposes that have attributes from closed periods. Since these NOLs may be utilized in future periods, they remain subject to examination. The Company also files certain tax returns in the PRC. As of March 31, 2020, the Company was not aware of any pending income tax examinations by U.S. or PRC tax authorities. The Company records interest and penalties on uncertain tax provisions as income tax expense. As of March 31, 2020, the Company has no accrued interest or penalties related to uncertain tax positions. The aggregate NOLs in 2019 was $9.6 million deriving from entities in the PRC and Hong Kong. The aggregate NOLs in 2018 was $28.1 million deriving from entities in the PRC and Hong Kong. The NOLs will start to expire from 2021 if they are not used. The cumulative net operating loss in the PRC can be carried forward for five years, to offset future net profits for income tax purposes. The Company has $0 cumulative net operating loss in U.S. to carry forward as of March 31, 2020. The cumulative net operating loss in Hong Kong can be carried forward without an expiration date. (b) Tax Holiday Effect For the three months ended March 31, 2020 and 2019, the PRC CIT rate was 25%. Certain subsidiaries of the Company are entitled to tax exemptions (tax holidays) for the three months ended March 31, 2020 and 2019. The combined effects of income tax expense exemptions and reductions available to the Company for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended March 31, 2020 2019 Tax benefit (holiday) credit $ 58,325 $ 71,569 Basic net income per share effect $ 0.000 $ 0.000 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | NOTE 19 - LEASES The Company has renewed its corporate office leases for SC Autosports, with a term of 15 months from January 31, 2020 to April 30, 2021. The monthly lease payment is $11,000 from February 2020 to April 2020 and $12,000 from May 2020 to April 2021. The Company recorded operating lease assets and operating lease liabilities at January 31, 2020, with a remaining lease term of 15 months and discount rate of 4.25%. As of March 31, 2020, the Company's right - of - use asset (grouped in other long term assets on the balance sheet) was $149,614 and lease liability (grouped in other current liability on the balance sheet) was $151,204. For the three months ended March 31, 2020, the Company's operating lease cost was $33,000. Supplemental information related to operating leases was as follows: Three months ended Cash payments for operating leases $ 33,000 Maturities of lease liabilities as of March 31, 2020, were as follow: Maturity of Lease Liabilities: Lease payable 2020 $ 103,626 2021 47,578 Total $ 151,204 |
Contingent Consideration Liabil
Contingent Consideration Liability | 3 Months Ended |
Mar. 31, 2020 | |
Business Combination, Contingent Consideration, Liability [Abstract] | |
CONTINGENT CONSIDERATION LIABILITY | NOTE 20 - CONTINGENT CONSIDERATION LIABILITY On January 3, 2018, the Company completed the acquisition of 100% of the equity of Jinhua An Kao. The Company paid approximately RMB 25.93 million (approximately $4 million) at the closing of the transaction using cash on hand and issued a total of 2,959,837 shares of restrictive stock or 6.2% of the Company's total outstanding shares of the common stock valued at approximately $20.7 million to the former shareholders of Jinhua An Kao and his designees (the "An Kao Shareholders"), and may be required to pay future consideration up to an additional 2,959,837 shares of common stock, which are being held in escrow, to be released contingent upon the achievement of certain net income-based milestones in the next three years. Any escrowed shares that are not released from escrow to the An Kao Shareholders for failure to achieve the milestones will be forfeited and returned to the Company for cancellation. While the escrowed shares are held in escrow, the Company will retain all voting rights with respect to the shares. For the year ended December 31, 2018, Jinhua An Kao achieved its first year net profit target. According to the agreement, the An Kao Shareholders received 739,959 shares of Kandi's restrictive common stock or 12.5% of the total equity consideration (i.e., 5,919,674 total shares) as part of the purchase price. For the year ended December 31, 2019, Jinhua An Kao achieved its second year net profit target. According to the agreement, the An Kao Shareholders will receive 986,810 shares of Kandi's restrictive common stock or 16.67% of the total equity consideration (i.e., 5,919,674 total shares) as part of the purchase price. All the escrowed shares have been included in the Company's registration statement on Form S-3 declared effective by the SEC on April 5, 2019. On July 1, 2018, the Company completed the acquisition of 100% of the equity of SC Autosports. The Company issued a total of 171,969 shares of restrictive stock or approximately 0.3% of the Company's total outstanding shares of the common stock valued at approximately $0.8 million at the closing of transaction to the former members of SC Autosports within 30 days from the signing date of the Transfer Agreement, and may be required to pay future consideration up to an additional 1,547,721 shares of common stock, which are being held in escrow, to be released contingent upon the achievement of certain pre-tax profit based milestones in the next three years. Any escrowed shares that are not released from escrow to the SC Autosports former members for failure to achieve the milestones will be forfeited and returned to the Company for cancellation. While the escrowed shares are held in escrow, the Company will retain all voting rights with respect to the shares. For the year ended December 31, 2018, SC Autosports achieved its first year pre-tax profit target. According to the agreement, the former members of SC Autosports received 343,938 shares of Kandi's restrictive common stock or 20% of total Kandi stock in the purchase price. For the year ended December 31, 2019, SC Autosports achieved its second year pre-tax profit target. According to the agreement, the former members of SC Autosports will receive 515,907 shares of Kandi's restrictive common stock or 30% of total Kandi stock in the purchase price. All the escrowed shares have been included in the Company's registration statement on Form S-3 declared effective by the SEC on April 5, 2019. The Company recorded contingent consideration liability of the estimated fair value of the contingent consideration the Company currently expects to pay to An Kao Shareholders and SC Autosports' former members upon the achievement of certain milestones. The fair value of the contingent consideration liability associated with remaining shares of restrictive common stock was estimated by using the Monte Carlo simulation method, which took into account all possible scenarios. This fair value measurement is classified as Level 3 within the fair value hierarchy prescribed by ASC Topic 820, Fair Value Measurement and Disclosures. In accordance with ASC Topic 805, Business Combinations, the Company will re-measure this liability each reporting period and record changes in the fair value through a separate line item within the Company's consolidated statements of income. As of March 31, 2020 and December 31, 2019, the Company's contingent consideration liability was $1,405,000 and $5,197,000, respectively. The decrease in contingent consideration liability was mainly due to the decrease of the forecast of SC Autosports' third year net income as of March 31, 2020 and the decrease of the Company's stock price in the first quarter of 2020. |
Stock Award
Stock Award | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK AWARD | NOTE 21 - STOCK AWARD In connection with the appointment of Mr. Henry Yu as a member of the Board of Directors (the "Board"), the Board authorized the Company to compensate Mr. Henry Yu with 5,000 shares of Company's restricted common stock every six months as compensation, beginning in July 2011. As compensation for Mr. Jerry Lewin's services as a member of the Board, the Board authorized the Company to compensate Mr. Jerry Lewin with 5,000 shares of Company's restricted common stock every six months, beginning in August 2011. As compensation for Ms. Kewa Luo's services as the Company's investor relation officer, the Board authorized the Company to compensate Ms. Kewa Luo with 5,000 shares of the Company's common stock every six months, beginning in September 2013. In November 2016, the Company entered into a three-year employment agreement with Mr. Mei Bing, to hire him as the Company's Chief Financial Officer. Under the agreement, Mr. Mei Bing was entitled to receive an aggregate 10,000 shares of common stock each year, vested in four equal quarterly installments of 2,500 shares. On January 29, 2019, Mr. Mei resigned from his position as the Company's CFO. On January 29, 2019, the Board appointed Ms. Zhu Xiaoying as interim Chief Financial Officer. Ms. Zhu was entitled to receive 10,000 shares of the common stock annually under the Company's 2008 Omnibus Long-Term Incentive Plan (the "2008 Plan") as a year-end equity bonus. Effective May 15, 2020, Ms. Zhu ceased being the interim Chief Financial Officer of the Company. On May 15, 2020, the Board appointed Mr. Jehn Ming Lim as the Chief Financial Officer. Mr. Lim was entitled to receive 6,000 shares of the common stock annually under the 2008 Plan, which shall be issuable evenly on each six-month anniversary hereof or as otherwise determined by the Board. The fair value of stock awards based on service is determined based on the closing price of the common stock on the date the shares are approved by the Board for grant. The compensation costs for awards of common stock are recognized over the requisite service period of three or six months. On December 30, 2013, the Board approved a proposal (as submitted by the Compensation Committee) of an award (the "Board's Pre-Approved Award Grant Sub-Plan under the 2008 Plan") for certain executives and other key employees. The fair value of each award granted under the 2008 Plan is determined based on the closing price of the Company's stock on the date of grant of such award. On September 26, 2016, the Board approved to terminate the previous Board's Pre-Approved Award Grant Sub-Plan under the 2008 Plan and adopted a new plan to grant the total number of shares of common stock of the stock award for selected executives and key employees 250,000 shares of common stock for each fiscal year. On April 18, 2018, the Company granted 238,600 shares of common stock to certain management members and employees as compensation for their past services under the 2008 Plan. On April 30, 2019, the Company granted 238,600 shares of common stock to certain management members and employees as compensation for their past services under the 2008 Plan. On May 9, 2020, the Company granted 238,600 shares of common stock to certain management members and employees as compensation for their past services under the 2008 Plan. For the three months ended March 31, 2020 and 2019, the Company recognized $22,925 and $31,675 of employee stock award expenses for stock compensation and annual incentive award under the 2008 Plan paid to Board members, management and consultants under General and Administrative Expenses, respectively. |
Summarized Information of Equit
Summarized Information of Equity Method Investment in the Affiliate Company | 3 Months Ended |
Mar. 31, 2020 | |
Summarized Information of Equity Method Investment in the JV Company [Abstract] | |
SUMMARIZED INFORMATION OF EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY | NOTE 22 - SUMMARIZED INFORMATION OF EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY The Company's condensed consolidated net income (loss) includes the Company's proportionate share of the net income or loss of the Company's equity method investees. When the Company records its proportionate share of net income (loss) in such investees, it increases equity income (loss) – net in the Company's consolidated statements of income and the Company's carrying value in that investment. Conversely, when the Company records its proportionate share of a net loss in such investees, it decreases equity income (loss) – net in the Company's consolidated statements of income (loss) and the Company's carrying value in that investment. All intra-entity profits and losses with the Company's equity method investees have been eliminated. On March 21, 2019, Kandi Vehicles signed an Equity Transfer Agreement with Geely Technologies Group Co., Ltd. ("Geely") to transfer certain equity interests in the Affiliate Company to Geely. Pursuant to the Transfer Agreement, the Affiliate Company converted a loan of RMB 314 million (approximately $44.3 million) from Geely last year to equity in order to increase its cash flow. As a result, the registered capital of the Affiliate Company became RMB 2.40 billion (approximately $338.6 million), of which Kandi Vehicles owned 43.47% and Geely owned 56.53%, respectively, upon the conversion of the loan into equity in the Affiliate Company. Kandi Vehicles further agree to sell 21.47% of its equity interests in the Affiliate Company to Geely for a total amount of RMB 516 million (approximately $72.8 million). Kandi Vehicles shall own 22% of the equity interests of the Affiliate Company as a result of the transfer. As of September 29, 2019, the Company had received payments in cash totaling RMB 220 million (approximately $31.0 million) and certain commercial acceptance notes of RMB 296 million (approximately $41.8 million) from Geely, of which RMB 140 million (approximately $19.8 million) shall mature on January 20, 2020 and the remaining RMB 156 million (approximately $22.0 million) shall mature on March 29, 2020. As of September 30, 2019, the equity transfer had been completed. Therefore, in the third quarter of 2019, the Company recognized the gain from equity sale of $20,438,986. As of date of this report, RMB 110 million (approximately $15.5 million) of the commercial acceptance notes has been collected. Affected by the coronavirus, collection of the remaining amount was agreed to be extended, which were considered as other receivable as of March 31, 2020. The Company accounted for its investments in the Affiliate Company under the equity method of accounting. The Company recorded 22% of the Affiliate Company's loss for the first quarter of 2020. The consolidated results of operations and financial position of the Affiliate Company are summarized below: Three Months ended March 31, 2020 2019 Condensed income statement information: Net sales $ 6,627,262 $ 1,256,873 Gross loss (337,772 ) (21,542 ) Gross margin -5.1 % -1.7 % Net loss (5,036,862 ) (20,191,314 ) March 31, December 31, 2020 2019 Condensed balance sheet information: Current assets $ 579,040,711 $ 640,688,401 Noncurrent assets 62,458,209 64,589,516 Total assets $ 641,498,920 $ 705,277,917 Current liabilities 435,465,398 490,625,640 Equity 206,033,522 214,652,277 Total liabilities and equity $ 641,498,920 $ 705,277,917 Note: The following table illustrates the captions used in the Company's Income Statements for its equity based investment in the Affiliate Company. The Company's equity method investments in the Affiliate Company for the three months ended March 31, 2020 and 2019 are as follows: Three Months ended March 31, 2020 2019 Investment in the Affiliate Company, beginning of the period, $ 47,228,614 $ 128,929,893 Gain from equity dilution - 4,365,390 Company's share in net loss of Affiliate based on 22% ownership for three months ended March 31, 2020 and 50% ownership for three months ended March 31, 2019 (1,108,361 ) (10,095,657 ) Intercompany transaction elimination - (10,624 ) Prior year unrealized profit realized 5,591 157,123 Subtotal (1,102,770 ) (9,949,158 ) Exchange difference (788,185 ) 3,146,280 Investment in Affiliate Company, end of the period $ 45,337,659 $ 126,492,405 The gain from equity dilution for three months ended March 31, 2019 resulted from the Affiliate Company issuing shares to the major shareholder of the Affiliate Company, Greely, in exchange for extinguishment of a loan from Greely, resulting in dilution of equity ownership of the Company from 50% to 43.47%. This dilutive transaction was treated as if the Company sold a proportional share of its investment in the Affiliate Company. Sales to the Company's customers, the Affiliate Company and its subsidiaries, for the three months ended March 31, 2020, were $0 or 0% of the Company's total revenue, a decrease of 100% from $1,733,497 of the same quarter last year. Sales to the Affiliate Company and its subsidiaries were primarily of battery packs, body parts, EV drive motors, EV controllers, air conditioning units and other auto parts. As of March 31, 2020 and December 31, 2019, the net amount due from the Affiliate Company and its subsidiaries, was $20,026,310 and $31,330,763, respectively. As of March 31, 2020 and December 31, 2019 the net amount due from the Affiliate Company and its subsidiaries included $2,021,512 and $2,056,564 interest receivable related to the loan lent to the Affiliate Company, but didn't include any outstanding loan principal. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 23 - COMMITMENTS AND CONTINGENCIES Guarantees and pledged collateral for bank loans to other parties (1) Guarantees for bank loans On March 15, 2013, the Company entered into a guarantee contract to serve as the guarantor of Nanlong Group Co., Ltd. (“NGCL”) for NGCL’s $ 2,821,830 (RMB 20 million) loan from Shanghai Pudong Development Bank Jinhua Branch, with a related loan period from March 15, 2013 to March 15, 2016. NGCL is not related to the Company. Under this guarantee contract, the Company agreed to assume joint liability as the loan guarantor. In April 2017, Shanghai Pudong Development Bank filed a lawsuit against NGCL, the Company and ten other parties in Zhejiang Province People’s Court in Yongkang City, alleging NGCL defaulted on a bank loan borrowed from Shanghai Pudong Development Bank for a principal amount of approximately $2.9 million and demanded that the guarantor bear the liability for compensation. On May 27, 2017, a judicial mediation took place in Yongkang City and parties reached a settlement in mediation, in which the plaintiff agreed NGCL would repay the loan principal and interest in installments. If there were an event of default that NGCL could not repay the loan, the Company may be obligated to bear the liability of defaulted amount. The Company expects the likelihood of incurring losses in connection with this matter to be remote. On September 29, 2015, the Company entered into a guarantee contract to serve as the guarantor of Zhejiang Shuguang Industrial Co., Ltd. (“ZSICL”) for a bank loan in the amount of $4,091,653 (RMB 29 million) from Ping An Bank, with a related loan period of September 29, 2015, to September 28, 2016. ZSICL is not related to the Company. Under this guarantee contract, the Company agreed to perform all the obligations of ZSICL under the loan contract if ZSICL failed to perform its obligations as set forth therein. In August 2016, Ping An Bank Yiwu Branch (“Ping An Bank”) filed a lawsuit against ZSICL, the Company, and three other parties in Zhejiang Province People’s Court in Yiwu City, alleging ZSICL defaulted on a bank loan it had borrowed from Pin An Bank for a principal amount of RMB 29 million or approximately $4.2 million (the “Principal”), for which the Company was a guarantor along with other three parties. On December 25, 2016, the court ruled that ZSICL should repay Ping An Bank the principal and associated interest remaining on the bank loan within 10 days once the adjudication was effective. Additionally, the court found that the Company and the three other parties, acting as guarantors, have joint liability for this bank loan. On July 31, 2017, the Company and Ping An Bank reached an agreement to settle. According to the agreement, the Company was to pay Ping An Bank RMB 20 million or approximately $3.0 million in four installments before October 31, 2017 to release the Company from its guarantor liability for this default. As of October 31, 2017, the Company has paid all four installments totaling RMB 20 million or approximately $3.0 million to Ping An Bank and thus the Company has been released from its guarantor liability for this default. According to the Company’s agreement with ZSICL, ZSICL agreed to reimburse all the Company’s losses due to ZSICL’s default on the loan principal and interests, of which RMB 13.9 million has been reimbursed to the Company as of the date of this report and the remainder is expected to be reimbursed in installments. The Company expects the likelihood of incurring losses in connection with this matter to be low. (2) Pledged collateral for bank loans for which the parties other than the Company are the borrowers. As of March 31, 2020 and December 31, 2019, none of the Company’s land use rights or plants and equipment were pledged as collateral securing bank loans for which the parties other than the Company are the borrowers. Litigation Beginning in March 2017, putative shareholder class actions were filed against Kandi Technologies Group, Inc. (“Kandi”) and certain of its current and former directors and officers in the United States District Court for the Central District of California and the United States District Court for the Southern District of New York. The complaints generally alleged violations of the federal securities laws based Kandi’s disclosure in March 2017 that its financial statements for the years 2014, 2015 and the first three quarters of 2016 would need to be restated, and seek damages on behalf of putative classes of shareholders who purchased or acquired Kandi’s securities prior to March 13, 2017. Kandi moved to dismiss the remaining cases, all of which were pending in the New York federal court, and that motion was granted by an order entered on September 30, 2019, and the time to appeal has run. Beginning in May 2017, purported shareholder derivative actions based on the same underlying events described above were filed against certain current and former directors of Kandi in the United States District Court for the Southern District of New York. The New York federal court confirmed the voluntary dismissal of these actions in April 2019. In October 2017, a shareholder filed a books and records action against the Company in the Delaware Court of Chancery pursuant to 8 Del. C. Section 220 seeking the production of certain documents generally relating to the same underlying items described above as well as attorney’s fees (the “Section 220 Litigation”). On September 28, 2018, the parties, through their respective counsel, agreed to dismiss the Section 220 Litigation with prejudice and with each party bearing its own attorney’s fees, costs, and expenses, thereby concluding the action. In February 2019, this same shareholder commenced a derivative action against certain current and former directors of Kandi in the Delaware Court of Chancery. A motion to dismiss this derivative action was filed in May 2019 and that motion was denied on April 27, 2020. Separately, in connection with allegations of misconduct identified in pre-suit demands made by putative shareholders of Kandi, Kandi formed a Special Litigation Committee (“SLC”) and retained Delaware law firm as independent counsel to the SLC to aid in the SLC’s investigation of, and to ultimately report on, the allegations of misconduct set forth in the pre-suit demands. The investigation remains ongoing. While the Company believes that the claims in these litigations are without merit and will defend itself vigorously, the Company is unable to estimate the possible loss, if any, associated with these litigations. The ultimate outcome of any litigation is uncertain and the outcome of these matters, whether favorable or unfavorable, could have a negative impact on the Company’s financial condition or results of operations due to defense costs, diversion of management resources and other factors. Defending litigation can be costly, and adverse results in the litigations could result in substantial monetary judgments. No assurance can be made that litigation will not have a material adverse effect on the Company’s future financial position. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 24 - SEGMENT REPORTING The Company has one operating segment. The Company's revenue and long-lived assets are primarily derived from and located in China and US. The Company does not have manufacturing operations outside of China. The following table sets forth disaggregation of revenue: Three Months Ended 2020 2019 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 2,130,824 $ 5,222,525 China 4,241,600 12,845,935 Total $ 6,372,424 $ 18,068,460 Major products EV parts $ 2,081,335 $ 12,771,440 EV products 255,819 - Off-road vehicles 4,035,270 5,297,020 Total $ 6,372,424 $ 18,068,460 Timing of revenue recognition Products transferred at a point in time $ 6,372,424 $ 18,068, 460 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 25 - SUBSEQUENT EVENT On May 22, 2020, the Company received the first payment of RMB 244 million (approximately $34.4 million) under the Repurchase Agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Reclassification | (v) Reclassification Certain reclassifications have been made to the condensed consolidated statements of cash flows for three months ended March 31, 2019 to conform to the presentation of consolidated financial statement for three months ended March 31, 2020. The Company reclassified the following 1) grouping due from employees into other receivables and other assets; 2) grouping customer deposits and deferred income into other payables and accrued liabilities. |
Concentrations (Tables)
Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Customers [Member] | |
Concentration Risk [Line Items] | |
Schedule of concentration percentage | Sales Trade Receivable Three Months Three Months Ended Ended March 31, March 31, March 31, December 31, Major Customers 2020 2019 2020 2019 Customer A 33 % 61 % 66 % 55 % Customer B 14 % 7 % 4 % 5 % |
Suppliers [Member] | |
Concentration Risk [Line Items] | |
Schedule of concentration percentage | Purchases Accounts Payable Three Months Three Months Ended Ended March 31, March 31, March 31, December 31, Major Suppliers 2020 2019 2020 2019 Zhejiang Kandi Supply Chain Management Co., Ltd. 60 % 12 % 7 % 8 % Supplier C 27 % 20 % - - |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings loss per share | For three months ended March 31, 2020 2019 Net loss $ (1,574,646 ) $ (4,409,472 ) Weighted average shares used in basic computation 52,361,077 51,565,287 Dilutive shares - - Weighted average shares used in diluted computation 52,361,077 51,565,287 Loss per share: Basic $ (0.03 ) $ (0.09 ) Diluted $ (0.03 ) $ (0.09 ) |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | March 31, December 31, 2020 2019 Accounts receivable $ 54,146,409 $ 61,436,514 Less: allowance for doubtful accounts (250,325 ) (254,665 ) Accounts receivable, net $ 53,896,084 $ 61,181,849 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | March 31, December 31, 2020 2019 Raw material $ 12,322,568 $ 12,127,957 Work-in-progress 7,010,026 4,545,736 Finished goods 10,839,957 11,062,873 Inventories $ 30,172,551 $ 27,736,566 |
Other Receivables (Tables)
Other Receivables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of other receivables | March 31, December 31, 2020 2019 Amount due from unrelated party for equity transfer of the Affiliate Company $ 30,475,760 $ - Loan to third party 12,242,967 3,577,145 Others 1,547,003 1,442,826 Total other receivables $ 44,265,730 $ 5,019,971 |
Property, Plant And Equipment_2
Property, Plant And Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plants and equipment | March 31, December 31, 2020 2019 At cost: Buildings $ 29,929,525 $ 30,447,480 Machinery and equipment 61,897,255 62,973,794 Office equipment 1,032,286 1,048,651 Motor vehicles and other transport equipment 411,131 413,046 Molds and others 25,395,892 25,836,241 118,666,089 120,719,212 Less : Accumulated depreciation Buildings $ (6,126,391 ) $ (5,975,030 ) Machinery and equipment (15,287,411 ) (14,127,506 ) Office equipment (570,337 ) (537,829 ) Motor vehicles and other transport equipment (362,041 ) (360,098 ) Molds and others (24,928,660 ) (25,310,891 ) (47,274,840 ) (46,311,354 ) Property, plant and equipment, net $ 71,391,249 $ 74,407,858 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill | Remaining March 31, December 31, useful life 2020 2019 Gross carrying amount: Trade name 1.75 years $ 492,235 $ 492,235 Customer relations 1.75 years 304,086 304,086 Patent 5.25-6.92 years 4,486,709 4,564,506 5,283,030 5,360,827 Less : Accumulated amortization Trade name $ (401,740 ) $ (389,053 ) Customer relations (248,179 ) (240,342 ) Patent (1,190,598 ) (1,076,660 ) (1,840,517 ) (1,706,055 ) Intangible assets, net $ 3,442,513 $ 3,654,772 |
Schedule of amortization expenses | 2020 (Nine months) $ 464,567 2021 619,422 2022 540,063 2023 537,327 2024 537,327 Thereafter 743,807 Total $ 3,442,513 |
Land Use Rights, Net (Tables)
Land Use Rights, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Land Use Rights [Abstract] | |
Schedule of land use rights | March 31, December 31, 2020 2019 Cost of land use rights $ 14,480,760 $ 14,731,847 Less: Accumulated amortization (3,479,807 ) (3,459,032 ) Land use rights, net $ 11,000,953 $ 11,272,815 |
Schedule of amortization expense | 2020 (Nine months) $ 242,883 2021 323,844 2022 323,844 2023 323,844 2024 323,844 Thereafter 9,462,694 Total $ 11,000,953 |
Short-Term and Long-Term Bank_2
Short-Term and Long-Term Bank Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of short-term loan | March 31, December 31, 2020 2019 Bank A Interest rate 5.66% per annum, paid off on May 22, 2020, secured by the assets of Kandi Vehicle, also guaranteed by company's subsidiaries. Also see Note 14 and Note 16. 6,885,264 7,004,650 Interest rate 5.66% per annum, paid off on May 22, 2020, secured by the assets of Kandi Vehicle, also guaranteed by company's subsidiaries. Also see Note 14 and Note 16. 4,543,146 4,621,921 Interest rate 4.05% per annum, paid off on May 22, 2020, secured by the deposit of Kandi Vehicle. Also see Note 14 and Note 16. 2,680,738 - Bank B Interest rate 5.22% per annum, paid off on April 22, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. 5,643,659 5,741,517 Interest rate 5.22% per annum, paid off on April 24, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. 4,232,745 4,306,138 Interest rate 5.22% per annum, paid off on April 26, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. 4,232,745 4,306,138 Interest rate 4.79% per annum, paid off on May 22, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. 5,643,659 - $ 33,861,956 $ 25,980,364 |
Schedule of long-term loan | March 31, December 31, 2020 2019 Bank C Interest rate 7% per annum, due on December 12, 2021, guaranteed by the Company’s subsidiaries. 27,653,930 28,133,433 Long term bank loans - current and noncurrent portion $ 27,653,930 28,133,433 |
Taxes (Tables)
Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense exemptions and reductions | Three Months Ended March 31, 2020 2019 Tax benefit (holiday) credit $ 58,325 $ 71,569 Basic net income per share effect $ 0.000 $ 0.000 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of information related to operating leases | Three months ended Cash payments for operating leases $ 33,000 |
Schedule of maturities of lease liabilities | Maturity of Lease Liabilities: Lease payable 2020 $ 103,626 2021 47,578 Total $ 151,204 |
Summarized Information of Equ_2
Summarized Information of Equity Method Investment in the Affiliate Company (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Summarized Information of Equity Method Investment in the JV Company [Abstract] | |
Schedule of condensed income statement information | Three Months ended March 31, 2020 2019 Condensed income statement information: Net sales $ 6,627,262 $ 1,256,873 Gross loss (337,772 ) (21,542 ) Gross margin -5.1 % -1.7 % Net loss (5,036,862 ) (20,191,314 ) |
Schedule of condensed balance sheet information | March 31, December 31, 2020 2019 Condensed balance sheet information: Current assets $ 579,040,711 $ 640,688,401 Noncurrent assets 62,458,209 64,589,516 Total assets $ 641,498,920 $ 705,277,917 Current liabilities 435,465,398 490,625,640 Equity 206,033,522 214,652,277 Total liabilities and equity $ 641,498,920 $ 705,277,917 |
Schedule of equity method investments | Three Months ended March 31, 2020 2019 Investment in the Affiliate Company, beginning of the period, $ 47,228,614 $ 128,929,893 Gain from equity dilution - 4,365,390 Company's share in net loss of Affiliate based on 22% ownership for three months ended March 31, 2020 and 50% ownership for three months ended March 31, 2019 (1,108,361 ) (10,095,657 ) Intercompany transaction elimination - (10,624 ) Prior year unrealized profit realized 5,591 157,123 Subtotal (1,102,770 ) (9,949,158 ) Exchange difference (788,185 ) 3,146,280 Investment in Affiliate Company, end of the period $ 45,337,659 $ 126,492,405 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of revenues by geographic area | Three Months Ended 2020 2019 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 2,130,824 $ 5,222,525 China 4,241,600 12,845,935 Total $ 6,372,424 $ 18,068,460 Major products EV parts $ 2,081,335 $ 12,771,440 EV products 255,819 - Off-road vehicles 4,035,270 5,297,020 Total $ 6,372,424 $ 18,068,460 Timing of revenue recognition Products transferred at a point in time $ 6,372,424 $ 18,068, 460 |
Liquidity (Details)
Liquidity (Details) | Mar. 10, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 09, 2020USD ($) | Mar. 09, 2020CNY (¥) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) |
Liquidity (Textual) | ||||||
Working capital | $ 60,671,426 | $ 63,698,697 | ||||
Working capital decrease | 3,027,271 | |||||
Cash and cash equivalents | 3,719,142 | 5,490,557 | $ 3,327,013 | |||
Restricted cash | $ 6,034,751 | $ 11,022,078 | ||||
Real estate repurchase agreement, description | After two years of negotiations, on March 10, 2020, a real estate repurchase agreement (the “Repurchase Agreement”) was entered into by and between Kandi Vehicles and Jinhua Economic and Technological Development Zone pursuant to which the local government shall purchase the land use right over the land of 66 acres (400 mu, 265,029 square meters). | |||||
Maximum [Member] | ||||||
Liquidity (Textual) | ||||||
Equity method investments on affiliate | $ 75,000,000 | |||||
Minimum [Member] | ||||||
Liquidity (Textual) | ||||||
Equity method investments on affiliate | $ 71,000,000 | |||||
RMB [Member] | Maximum [Member] | ||||||
Liquidity (Textual) | ||||||
Equity method investments on affiliate | $ 525,000,000 | |||||
RMB [Member] | Minimum [Member] | ||||||
Liquidity (Textual) | ||||||
Equity method investments on affiliate | ¥ | ¥ 500,000,000 |
Principles of Consolidation (De
Principles of Consolidation (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Kandi Hainan [Member] | Kandi Vehicles [Member] | |
Principles of Consolidation (Textual) | |
Percentage owned in subsidiary | 90.00% |
Affiliate Company and its Subsidiaries [Member] | Kandi Vehicles [Member] | |
Principles of Consolidation (Textual) | |
Percentage of ownership interest | 22.00% |
Kandi New Energy [Member] | Kandi Vehicles [Member] | |
Principles of Consolidation (Textual) | |
Percentage owned in subsidiary | 50.00% |
Percentage of economic benefits, voting rights and residual interests | 100.00% |
Kandi New Energy [Member] | Mr. Hu Xiaoming [Member] | |
Principles of Consolidation (Textual) | |
Percentage owned in subsidiary | 50.00% |
Kandi New Energy [Member] | Kandi Hainan [Member] | |
Principles of Consolidation (Textual) | |
Percentage owned in subsidiary | 10.00% |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Sales [Member] | Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 33.00% | 61.00% |
Sales [Member] | Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 14.00% | 7.00% |
Trade Receivable [Member] | Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 66.00% | 55.00% |
Trade Receivable [Member] | Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 4.00% | 5.00% |
Concentrations (Details 1)
Concentrations (Details 1) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Purchases [Member] | Zhejiang Kandi Supply Chain Management Co., Ltd. [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 60.00% | 12.00% | |
Purchases [Member] | Supplier C [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 27.00% | 20.00% | |
Accounts Payable [Member] | Zhejiang Kandi Supply Chain Management Co., Ltd. [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 7.00% | 8.00% | |
Accounts Payable [Member] | Supplier C [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage |
Concentrations (Details Textual
Concentrations (Details Textual) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Customers [Member] | ||
Concentrations (Textual) | ||
Concentration risk, percentage | 10.00% | 10.00% |
Suppliers [Member] | ||
Concentrations (Textual) | ||
Concentration risk, percentage | 10.00% | 10.00% |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (1,574,646) | $ (4,409,472) |
Weighted average shares used in basic computation | 52,361,077 | 51,565,287 |
Dilutive shares | ||
Weighted average shares used in diluted computation | 52,361,077 | 51,565,287 |
Loss per share: | ||
Basic | $ (0.03) | $ (0.09) |
Diluted | $ (0.03) | $ (0.09) |
Earnings (Loss) Per Share (De_2
Earnings (Loss) Per Share (Details Textual) | 3 Months Ended |
Mar. 31, 2020shares | |
Earnings (Loss) Per Share (Textual) | |
Potentially dilutive shares | 3,900,000 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Accounts receivable | $ 54,146,409 | $ 61,436,514 |
Less: allowance for doubtful accounts | (250,325) | (254,665) |
Accounts receivable, net | $ 53,896,084 | $ 61,181,849 |
Inventories (Details)
Inventories (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 12,322,568 | $ 12,127,957 |
Work-in-progress | 7,010,026 | 4,545,736 |
Finished goods | 10,839,957 | 11,062,873 |
Inventories | $ 30,172,551 | $ 27,736,566 |
Notes Receivable (Details )
Notes Receivable (Details ) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Notes Receivable (Textual) | ||
Notes receivable | $ 42,487,225 | |
Unrelated Parties [Member] | ||
Notes Receivable (Textual) | ||
Notes receivable | 0 | $ 42,487,225 |
Affiliate Company and Related Parties [Member] | ||
Notes Receivable (Textual) | ||
Notes receivable | $ 11,287,319 |
Other Receivables (Details)
Other Receivables (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Amount due from unrelated party for equity transfer of the Affiliate Company | $ 30,475,760 | |
Loan to third party | 12,242,967 | 3,577,145 |
Others | 1,547,003 | 1,442,826 |
Total other receivables | $ 44,265,730 | $ 5,019,971 |
Other Receivables (Details Text
Other Receivables (Details Textual) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Other Receivables (Textual) | ||
Amount due from unrelated party for equity transfer of the Affiliate Company | $ 30,475,760 | |
Other receivable | $ 1,547,003 | $ 1,442,826 |
Unrelated party annual interest rate | 6.00% |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
At cost: | $ 118,666,089 | $ 120,719,212 |
Less: Accumulated depreciation | (47,274,840) | (46,311,354) |
Less: provision for impairment for fixed assets | ||
Property, plant and equipment, net | 71,391,249 | 74,407,858 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost: | 29,929,525 | 30,447,480 |
Less: Accumulated depreciation | (6,126,391) | (5,975,030) |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost: | 61,897,255 | 62,973,794 |
Less: Accumulated depreciation | (15,287,411) | (14,127,506) |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost: | 1,032,286 | 1,048,651 |
Less: Accumulated depreciation | (570,337) | (537,829) |
Motor vehicles and other transport equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost: | 411,131 | 413,046 |
Less: Accumulated depreciation | (362,041) | (360,098) |
Molds and others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost: | 25,395,892 | 25,836,241 |
Less: Accumulated depreciation | $ (24,928,660) | $ (25,310,891) |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment, Net (Textual) | |||
Net book value of property, plant and equipment pledged as collateral bank loans | $ 7,342,859 | $ 6,484,497 | |
Depreciation expenses | $ 1,780,152 | $ 2,015,459 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Gross carrying amount: | ||
Gross carrying value of intangible assets | $ 5,283,030 | $ 5,360,827 |
Less: Accumulated amortization | (1,840,517) | (1,706,055) |
Intangible assets, net | 3,442,513 | 3,654,772 |
Trade Name [Member] | ||
Gross carrying amount: | ||
Gross carrying value of intangible assets | 492,235 | 492,235 |
Less: Accumulated amortization | $ (401,740) | (389,053) |
Remaining useful life | 1 year 9 months | |
Customer Relations [Member] | ||
Gross carrying amount: | ||
Gross carrying value of intangible assets | $ 304,086 | 304,086 |
Less: Accumulated amortization | $ (248,179) | (240,342) |
Remaining useful life | 1 year 9 months | |
Patent [Member] | ||
Gross carrying amount: | ||
Gross carrying value of intangible assets | $ 4,486,709 | 4,564,506 |
Less: Accumulated amortization | $ (1,190,598) | $ (1,076,660) |
Patent [Member] | Minimum [Member] | ||
Gross carrying amount: | ||
Remaining useful life | 5 years 2 months 30 days | |
Patent [Member] | Maximum [Member] | ||
Gross carrying amount: | ||
Remaining useful life | 6 years 11 months 1 day |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 (Nine months) | $ 464,567 | |
2021 | 619,422 | |
2022 | 540,063 | |
2023 | 537,327 | |
2024 | 537,327 | |
Thereafter | 743,807 | |
Total | $ 3,442,513 | $ 3,654,772 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Intangible Assets (Textual) | ||
Amortization expenses for intangible assets | $ 154,856 | $ 159,503 |
Land Use Rights, Net (Details)
Land Use Rights, Net (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Land Use Rights [Abstract] | ||
Cost of land use rights | $ 14,480,760 | $ 14,731,847 |
Less: Accumulated amortization | (3,479,807) | (3,459,032) |
Land use rights, net | $ 11,000,953 | $ 11,272,815 |
Land Use Rights, Net (Details 1
Land Use Rights, Net (Details 1) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Land Use Rights [Abstract] | ||
2020 (Nine months) | $ 242,883 | |
2021 | 323,844 | |
2022 | 323,844 | |
2023 | 323,844 | |
2024 | 323,844 | |
Thereafter | 9,462,694 | |
Total | $ 11,000,953 | $ 11,272,815 |
Land Use Rights, Net (Details T
Land Use Rights, Net (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Land Use Rights (Textual) | |||
Net book value of land use rights pledged as collateral | $ 4,816,684 | $ 4,937,138 | |
Land use rights, amortization expenses | $ 80,961 | $ 83,762 |
Short-Term and Long-Term Bank_3
Short-Term and Long-Term Bank Loans (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Summary of short-term loans | ||
Short-term loans | $ 33,861,956 | $ 25,980,364 |
Bank A [Member] | Paid Off May 22, 2020 [Member] | ||
Summary of short-term loans | ||
Short-term loans | 6,885,264 | 7,004,650 |
Bank A [Member] | Paid Off May 22, 2020 One [Member] | ||
Summary of short-term loans | ||
Short-term loans | 4,543,146 | 4,621,921 |
Bank A [Member] | Paid Off May 22, 2020 Two [Member] | ||
Summary of short-term loans | ||
Short-term loans | 2,680,738 | |
Bank B [Member] | Paid Off April 22, 2019 [Member] | ||
Summary of short-term loans | ||
Short-term loans | 5,643,659 | 5,741,517 |
Bank B [Member] | Paid Off April 24, 2020 [Member] | ||
Summary of short-term loans | ||
Short-term loans | 4,232,745 | 4,306,138 |
Bank B [Member] | Paid Off April 26, 2020 [Member] | ||
Summary of short-term loans | ||
Short-term loans | 4,232,745 | 4,306,138 |
Bank B [Member] | Paid Off May 22, 2020 [Member] | ||
Summary of short-term loans | ||
Short-term loans | $ 5,643,659 |
Short-Term and Long-Term Bank_4
Short-Term and Long-Term Bank Loans (Details) (Parenthetical) | 3 Months Ended |
Mar. 31, 2020 | |
Bank A | Paid Off May 22, 2020 [Member] | |
Summary of short-term loans | |
Interest rate | 5.66% |
Paid off date | May 22, 2020 |
Bank A | Paid Off May 22, 2020 One [Member] | |
Summary of short-term loans | |
Interest rate | 5.66% |
Paid off date | May 22, 2020 |
Bank A | Paid Off May 22, 2020 Two [Member] | |
Summary of short-term loans | |
Interest rate | 4.05% |
Paid off date | May 22, 2020 |
Bank B | Paid Off April 22, 2019 [Member] | |
Summary of short-term loans | |
Interest rate | 5.22% |
Paid off date | Apr. 22, 2020 |
Bank B | Due On April 24, 2020 [Member] | |
Summary of short-term loans | |
Interest rate | 5.22% |
Paid off date | Apr. 24, 2020 |
Bank B | Due On April 26, 2020 [Member] | |
Summary of short-term loans | |
Interest rate | 5.22% |
Paid off date | Apr. 26, 2020 |
Bank B | Due On May 22, 2020 [Member] | |
Summary of short-term loans | |
Interest rate | 4.79% |
Paid off date | May 22, 2020 |
Short-Term and Long-Term Bank_5
Short-Term and Long-Term Bank Loans (Details 1) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Summary of long-term loans | ||
Interest rate 7% per annum, due on December 12, 2021, guaranteed by the Company's subsidiaries. | $ 14,109,148 | $ 14,353,792 |
Bank C [Member] | ||
Summary of long-term loans | ||
Interest rate 7% per annum, due on December 12, 2021, guaranteed by the Company's subsidiaries. | 27,653,930 | 28,133,433 |
Long term bank loans - current and noncurrent portion | $ 27,653,930 | $ 28,133,433 |
Short-Term and Long-Term Bank_6
Short-Term and Long-Term Bank Loans (Details 1) (Parenthetical) - Bank C [Member] | 3 Months Ended |
Mar. 31, 2020 | |
Summary of long-term loans | |
Interest rate | 7.00% |
Due date | Dec. 12, 2021 |
Short-Term and Long-Term Bank_7
Short-Term and Long-Term Bank Loans (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Short-Term and Long-Term Bank Loans (Textual) | ||
Interest expense of short-term and long-term bank loans | $ 842,049 | $ 439,183 |
Aggregate amount of short-term and long-term loans guaranteed by various third parties | $ 0 |
Taxes (Details)
Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Tax benefit (holiday) credit | $ 58,325 | $ 71,569 |
Basic net income per share effect | $ 0 | $ 0 |
Taxes (Details Textual)
Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Taxes (Textual) | ||||
Applicable corporate income tax rate | 25.00% | |||
Reduced income tax rate | 15.00% | |||
Certificate validation period | 3 years | |||
Net loss carried forward term | Expire from 2021. | |||
Corporation income tax, description | After combining research and development tax credits of 25% on certain qualified research and development expenses, the Company's effective tax rate for the three months ended March 31, 2020 and 2019 were a tax expense of 17.33% on a reported loss before taxes of approximately $1.3 million, a tax benefit of 15.49% on a reported loss before taxes of approximately $5.2 million, respectively. | |||
Tax expense | $ 232,613 | $ 232,613 | ||
Unrecognized tax benefits | $ 808,488 | $ 808,488 | ||
PRC [Member] | ||||
Taxes (Textual) | ||||
Net loss carried forward term | 5 years | |||
Corporation income tax, description | The applicable CIT rate of each of the Company’s three other subsidiaries, Kandi New Energy, Yongkang Scrou and Kandi Hainan, the Affiliate Company and its subsidiaries is 25%. | |||
Net operating loss carry forward | $ 28,100,000 | $ 9,600,000 | ||
Corporation income tax | 25.00% | 25.00% | ||
Hong Kong [Member] | ||||
Taxes (Textual) | ||||
Net operating loss carry forward | $ 28,100,000 | $ 9,600,000 | ||
U.S. [Member] | ||||
Taxes (Textual) | ||||
Cumulative net operating loss | $ 0 |
Leases (Details)
Leases (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Cash payments for operating leases | $ 33,000 |
Leases (Details 1)
Leases (Details 1) | Mar. 31, 2020USD ($) |
Maturity of Lease Liabilities: | |
2020 | $ 103,626 |
2021 | 47,578 |
Total | $ 151,204 |
Leases (Details Textual)
Leases (Details Textual) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Leases (Textual) | |
Right of use asset | $ 149,614 |
Lease liability | 151,204 |
Operating lease cost | $ 33,000 |
Corporate Office [Member] | SC Autosports [Member] | |
Leases (Textual) | |
Lease term | 15 months |
Discount rate | 4.25% |
Monthly lease payment, description | The monthly lease payment is $11,000 from February 2020 to April 2020 and $12,000 from May 2020 to April 2021. |
Contingent Consideration Liab_2
Contingent Consideration Liability (Details) - USD ($) | Jul. 02, 2018 | Jan. 03, 2018 | Dec. 31, 2018 | Mar. 31, 2020 | Dec. 31, 2019 |
Contingent Consideration Liability (Textual) | |||||
Contingent Consideration Liability | $ 1,405,000 | $ 5,197,000 | |||
Jinhua An Kao [Member] | |||||
Contingent Consideration Liability (Textual) | |||||
Number of shares issued | 2,959,837 | ||||
Number of shares, granted | 739,959 | ||||
Contingent consideration liability, description | For the year ended December 31, 2018, Jinhua An Kao achieved its first year net profit target. According to the agreement, the An Kao Shareholders received 739,959 shares of Kandi's restrictive common stock or 12.5% of the total equity consideration (i.e., 5,919,674 total shares) as part of the purchase price. For the year ended December 31, 2019, Jinhua An Kao achieved its second year net profit target. According to the agreement, the An Kao Shareholders will receive 986,810 shares of Kandi's restrictive common stock or 16.67% of the total equity consideration (i.e., 5,919,674 total shares) as part of the purchase price. All the escrowed shares have been included in the Company's registration statement on Form S-3 declared effective by the SEC on April 5, 2019. | ||||
Restricted Stock [Member] | Jinhua An Kao [Member] | |||||
Contingent Consideration Liability (Textual) | |||||
Number of shares issued | 2,959,837 | ||||
Number of shares issued, value | $ 20,700,000 | ||||
Contingent consideration liability, description | The Company completed the acquisition of 100% of the equity of Jinhua An Kao. The Company paid approximately RMB 25.93 million (approximately $4 million) at the closing of the transaction using cash on hand and issued a total of 2,959,837 shares of restrictive stock or 6.2% of the Company's total outstanding shares of the common stock valued at approximately $20.7 million to the former shareholders of Jinhua An Kao and his designees (the "An Kao Shareholders"), and may be required to pay future consideration up to an additional 2,959,837 shares of common stock, which are being held in escrow, to be released contingent upon the achievement of certain net income-based milestones in the next three years. | ||||
SC Autosports [Member] | |||||
Contingent Consideration Liability (Textual) | |||||
Number of shares, granted | 343,938 | ||||
Contingent consideration liability, description | For the year ended December 31, 2018, SC Autosports achieved its first year pre-tax profit target. According to the agreement, the former members of SC Autosports received 343,938 shares of Kandi's restrictive common stock or 20% of total Kandi stock in the purchase price. For the year ended December 31, 2019, SC Autosports achieved its second year pre-tax profit target. According to the agreement, the former members of SC Autosports will receive 515,907 shares of Kandi's restrictive common stock or 30% of total Kandi stock in the purchase price. All the escrowed shares have been included in the Company's registration statement on Form S-3 declared effective by the SEC on April 5, 2019. | ||||
Transfer Agreement [Member] | SC Autosports [Member] | |||||
Contingent Consideration Liability (Textual) | |||||
Number of shares issued | 1,547,721 | ||||
Transfer Agreement [Member] | SC Autosports [Member] | Restricted Stock [Member] | |||||
Contingent Consideration Liability (Textual) | |||||
Number of shares issued | 171,969 | ||||
Number of shares issued, value | $ 800,000 | ||||
Contingent consideration liability, description | The Company completed the acquisition of 100% of the equity of SC Autosports. The Company issued a total of 171,969 shares of restrictive stock or approximately 0.3% of the Company's total outstanding shares of the common stock valued at approximately $0.8 million at the closing of transaction to the former members of SC Autosports within 30 days from the signing date of the Transfer Agreement, and may be required to pay future consideration up to an additional 1,547,721 shares of common stock, which are being held in escrow, to be released contingent upon the achievement of certain pre-tax profit based milestones in the next three years. |
Stock Award (Details)
Stock Award (Details) - USD ($) | May 15, 2020 | May 09, 2020 | Apr. 30, 2019 | Jan. 29, 2019 | Apr. 18, 2018 | Nov. 30, 2016 | Sep. 26, 2016 | Mar. 31, 2020 | Mar. 31, 2019 |
Stock Award (Textual) | |||||||||
Employee stock award expenses | $ 3,066,735 | $ 2,039,528 | |||||||
Employee Stock Award Expenses [Member] | |||||||||
Stock Award (Textual) | |||||||||
Employee stock award expenses | $ 22,925 | $ 31,675 | |||||||
Mr. Mei Bing [Member] | Three Year Employment Agreement [Member] | |||||||||
Stock Award (Textual) | |||||||||
Shares of common stock | 10,000 | ||||||||
Vested shares of four equal quarterly installments | 2,500 | ||||||||
Ms. Kewa Luo [Member] | |||||||||
Stock Award (Textual) | |||||||||
Restricted shares of common stock | 5,000 | ||||||||
Mr. Jerry Lewin [Member] | |||||||||
Stock Award (Textual) | |||||||||
Restricted shares of common stock | 5,000 | ||||||||
Mr. Henry Yu [Member] | |||||||||
Stock Award (Textual) | |||||||||
Restricted shares of common stock | 5,000 | ||||||||
Management Members and Employees [Member] | |||||||||
Stock Award (Textual) | |||||||||
Number of shares, granted | 238,600 | 238,600 | |||||||
2008 Plan [Member] | |||||||||
Stock Award (Textual) | |||||||||
Number of shares, granted | 238,600 | ||||||||
Reduce total number of shares of common stock | 250,000 | ||||||||
2008 Omnibus Long-Term Incentive Plan [Member] | Ms. Zhu Xiaoying [Member] | |||||||||
Stock Award (Textual) | |||||||||
Shares of common stock | 10,000 | ||||||||
2008 Omnibus Long-Term Incentive Plan [Member] | Mr. Jehn Ming Lim [Member] | |||||||||
Stock Award (Textual) | |||||||||
Shares of common stock | 6,000 |
Summarized Information of Equ_3
Summarized Information of Equity Method Investment in the Affiliate Company (Details) - Affiliated Company [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed income statement information: | ||
Net sales | $ 6,627,262 | $ 1,256,873 |
Gross loss | $ (337,772) | $ (21,542) |
Gross margin | (5.10%) | (1.70%) |
Net loss | $ (5,036,862) | $ (20,191,314) |
Summarized Information of Equ_4
Summarized Information of Equity Method Investment in the Affiliate Company (Details 1) - Affiliated Company [Member] - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Condensed balance sheet information: | ||
Current assets | $ 579,040,711 | $ 640,688,401 |
Noncurrent assets | 62,458,209 | 64,589,516 |
Total assets | 641,498,920 | 705,277,917 |
Current liabilities | 435,465,398 | 490,625,640 |
Equity | 206,033,522 | 214,652,277 |
Total liabilities and equity | $ 641,498,920 | $ 705,277,917 |
Summarized Information of Equ_5
Summarized Information of Equity Method Investment in the Affiliate Company (Details 2) - Affiliated Company [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investment in the Affiliate Company, beginning of the period, | $ 47,228,614 | $ 128,929,893 |
Gain from equity dilution | 4,365,390 | |
Company’s share in net loss of Affiliate based on 22% ownership for three months ended March 31, 2020 and 50% ownership for three months ended March 31, 2019 | (1,108,361) | (10,095,657) |
Intercompany transaction elimination | (10,624) | |
Prior year unrealized profit realized | 5,591 | 157,123 |
Subtotal | (1,102,770) | (9,949,158) |
Exchange difference | (788,185) | 3,146,280 |
Investment in Affiliate Company, end of the period | $ 45,337,659 | $ 126,492,405 |
Summarized Information of Equ_6
Summarized Information of Equity Method Investment in the Affiliate Company (Details Textual) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2019USD ($) | Sep. 29, 2019CNY (¥) | Mar. 21, 2019 | Mar. 31, 2020USD ($) | Mar. 31, 2020CNY (¥) | Mar. 31, 2019 | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Sep. 29, 2019CNY (¥) | |
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | |||||||||
Consolidated interests of financial statements, description | The gain from equity dilution for three months ended March 31, 2019 resulted from the Affiliate Company issuing shares to the major shareholder of the Affiliate Company, Greely, in exchange for extinguishment of a loan from Greely, resulting in dilution of equity ownership of the Company from 50% to 43.47%. This dilutive transaction was treated as if the Company sold a proportional share of its investment in the Affiliate Company. | ||||||||
Amount non current due to affiliate company | $ 2,021,512 | $ 2,056,564 | |||||||
Ownership percentage of net income loss | 22.00% | 22.00% | |||||||
Net amount due from the affiliate company | $ 20,026,310 | $ 31,330,763 | |||||||
Affiliated Company [Member] | |||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | |||||||||
Sales to affiliate Company and subsidiaries, description | Kandi Vehicles signed an Equity Transfer Agreement with Geely Technologies Group Co., Ltd. ("Geely") to transfer certain equity interests in the Affiliate Company to Geely. Pursuant to the Transfer Agreement, the Affiliate Company converted a loan of RMB 314 million (approximately $44.3 million) from Geely last year to equity in order to increase its cash flow. As a result, the registered capital of the Affiliate Company became RMB 2.40 billion (approximately $338.6 million), of which Kandi Vehicles owned 43.47% and Geely owned 56.53%, respectively, upon the conversion of the loan into equity in the Affiliate Company. Kandi Vehicles further agree to sell 21.47% of its equity interests in the Affiliate Company to Geely for a total amount of RMB 516 million (approximately $72.8 million). Kandi Vehicles shall own 22% of the equity interests of the Affiliate Company as a result of the transfer. | Sales to the Company's customers, the Affiliate Company and its subsidiaries, for the three months ended March 31, 2020, were $0 or 0% of the Company's total revenue, a decrease of 100% from $1,733,497 of the same quarter last year. | Sales to the Company's customers, the Affiliate Company and its subsidiaries, for the three months ended March 31, 2020, were $0 or 0% of the Company's total revenue, a decrease of 100% from $1,733,497 of the same quarter last year. | ||||||
Ownership percentage of net income loss | 22.00% | 22.00% | 50.00% | ||||||
Realized gain from sale of equity | $ 15,500,000 | $ 20,438,986 | |||||||
Affiliated Company [Member] | RMB [Member] | |||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | |||||||||
Realized gain from sale of equity | ¥ | ¥ 110,000,000 | ||||||||
Geely Automobile Holdings Ltd [Member] | |||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | |||||||||
Equity method investments on affiliate | $ 41,800,000 | ||||||||
Cash proceeds from affiliates | 31,000,000 | ||||||||
Geely Automobile Holdings Ltd [Member] | January 20, 2020 [Member] | |||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | |||||||||
Equity method investments on affiliate | 19,800,000 | ||||||||
Geely Automobile Holdings Ltd [Member] | March 29, 2020 [Member] | |||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | |||||||||
Equity method investments on affiliate | $ 22,400,000 | ||||||||
Geely Automobile Holdings Ltd [Member] | RMB [Member] | |||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | |||||||||
Equity method investments on affiliate | ¥ | ¥ 296,000,000 | ||||||||
Cash proceeds from affiliates | ¥ | ¥ 220,000,000 | ||||||||
Geely Automobile Holdings Ltd [Member] | RMB [Member] | January 20, 2020 [Member] | |||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | |||||||||
Equity method investments on affiliate | ¥ | 140,000,000 | ||||||||
Geely Automobile Holdings Ltd [Member] | RMB [Member] | March 29, 2020 [Member] | |||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | |||||||||
Equity method investments on affiliate | ¥ | ¥ 156,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Mar. 15, 2013USD ($) | Jul. 31, 2017 | Apr. 30, 2017 | Sep. 29, 2015USD ($) | Aug. 31, 2016USD ($) | Aug. 31, 2016CNY (¥) | Sep. 29, 2015CNY (¥) | Mar. 15, 2013CNY (¥) |
Nanlong Group Co., Ltd. [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Guarantee for bank loans amount | $ | $ 2,821,830 | |||||||
Description of loans period | Loan period from March 15, 2013 to March 15, 2016. | |||||||
Nanlong Group Co., Ltd. [Member] | RMB [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Guarantee for bank loans amount | ¥ | ¥ 20,000,000 | |||||||
Zhejiang Shuguang Industrial Co., Ltd. [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Guarantee for bank loans amount | $ | $ 4,091,653 | |||||||
Description of loans period | Loan period of September 29, 2015, to September 28, 2016. | |||||||
Zhejiang Shuguang Industrial Co., Ltd. [Member] | RMB [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Guarantee for bank loans amount | ¥ | ¥ 29,000,000 | |||||||
Shanghai Pudong Development Bank [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Loan borrowed, description | Bank loan borrowed from Shanghai Pudong Development Bank for a principal amount of approximately $2.9 million and demanded that the guarantor bear the liability for compensation. | |||||||
Ping An Bank [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Guarantee for bank loans amount | $ | $ 4,200,000 | |||||||
Loan borrowed, description | The Company and Ping An Bank reached an agreement to settle. According to the agreement, the Company was to pay Ping An Bank RMB 20 million or approximately $3.0 million in four installments before October 31, 2017 to release the Company from its guarantor liability for this default. As of October 31, 2017, the Company has paid all four installments totaling RMB 20 million or approximately $3.0 million to Ping An Bank and thus the Company has been released from its guarantor liability for this default. According to the Company’s agreement with ZSICL, ZSICL agreed to reimburse all the Company’s losses due to ZSICL’s default on the loan principal and interests, of which RMB 13.9 million has been reimbursed to the Company as of the date of this report and the remainder is expected to be reimbursed in installments. The Company expects the likelihood of incurring losses in connection with this matter to be low. | |||||||
Ping An Bank [Member] | RMB [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Guarantee for bank loans amount | ¥ | ¥ 29,000,000 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 6,372,424 | $ 18,068,460 |
Products transferred at a point in time [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,372,424 | 18,068,460 |
Primary Geographical Markets [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,372,424 | 18,068,460 |
Major products [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,372,424 | 18,068,460 |
Major products [Member] | EV parts [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,081,335 | 12,771,440 |
Major products [Member] | EV products [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 255,819 | |
Major products [Member] | Off-road vehicles [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 4,035,270 | 5,297,020 |
Overseas [Member] | Primary Geographical Markets [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,130,824 | 5,222,525 |
China [Member] | Primary Geographical Markets [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 4,241,600 | $ 12,845,935 |
Segment Reporting (Details Text
Segment Reporting (Details Textual) | 3 Months Ended |
Mar. 31, 2020Segments / Segment | |
Segment Reporting (Textual) | |
Number of operating segment | 1 |
Subsequent Event (Details)
Subsequent Event (Details) | 1 Months Ended |
May 22, 2020 | |
Subsequent Event [Member] | |
Subsequent Event (Textual) | |
Repurchase agreement, description | The Company received the first payment of RMB 244 million (approximately $34.4 million) under the Repurchase Agreement |