Kandi Technologies by the numbers, 2.9 million dollars to enter a billion dollar field

The short version

• Kandi Technologies bought 51 percent of a supplier of lithium batteries for backup power for about 2.9 million dollars.
• Revenue fell 31.5 percent in 2025 to 87.4 million dollars, while the gross margin rose from 30.8 to 42.6 percent.
• At year end the company held 211.9 million dollars in cash, more than three times its stock market value at the time.

The transaction

On 29 June 2026 the company announced investment agreements to acquire 51 percent of a supplier of lithium batteries for backup power. The purchase price is 20 million renminbi, about 2.9 million dollars in cash. Closing was expected in July 2026.

The acquired business supplies battery packs for uninterruptible power supply, backup cabinets with high discharge output and response times in milliseconds, and its own battery management systems. Its target markets are data centres and mobile phone base stations. Describing this as an entry into backup power for data centres is therefore accurate.

Scale is what matters. The price equals about 3.3 percent of 2025 revenue and roughly 1.4 percent of the company's cash. Paying 2.9 million dollars for 51 percent implies a total valuation of about 5.7 million dollars. No revenue or earnings figures for the target were published.

The actual business

For the 2025 financial year Kandi reported revenue of 87.4 million dollars after 127.6 million dollars in 2024. That is a decline of 31.5 percent.

Over the same period the gross margin rose from 30.8 to 42.6 percent. In the first half of 2025 revenue was 36.3 million dollars, down 39.3 percent, at a gross margin of 45.2 percent. The operating loss narrowed to 1.9 million dollars from 4.4 million dollars.

A rising margin on falling revenue is ambiguous. It can mean the company sells dearer products or produces more cheaply. It can equally mean it has dropped unprofitable business. Which of the two applies only becomes clear once revenue grows again.

The balance sheet

This is where Kandi differs sharply from most companies of its size. At 31 December 2025 it held cash, restricted cash and term deposits totalling 211.9 million dollars. A year earlier the figure was 126.3 million dollars.

Cash inflow from operations was 96.8 million dollars, after an outflow of 17.8 million dollars the year before. An inflow of that size on revenue of 87.4 million dollars points strongly to a reduction of inventories and receivables. That is not a lasting source, but it creates room to manoeuvre.

Shares outstanding numbered 82,705,365. At a price of 73 cents in April 2026 the market value was around 61 million dollars. The company therefore held more than three times its stock market value in cash. Over twelve months a data provider recorded, at an earlier reference date, a loss of 50.5 million dollars and a loss per share of 59 cents.

Listing and the other business lines

Reporting indicates the company has received a notice from the exchange. At 73 cents it sits below the usual minimum threshold of one dollar, which raises the question of a reverse split.

Beyond the battery deal Kandi names several fields. Its off road electric vehicle business serves customers in 35 countries by its own account, with a focus on North America and expansion into Africa, Southeast Asia, Latin America and the Middle East. In battery swap stations for heavy commercial vehicles it works with a large Chinese battery maker and reports a first order. A joint venture for autonomous security robots was added in March 2026.

A broad line-up reduces dependence on a single market but spreads limited money and management attention. At 87 million dollars of annual revenue, each field gets little.

Frequently asked questions

Is Kandi now a supplier to AI data centres

The entry is documented but small. About 2.9 million dollars bought 51 percent of a supplier with no published figures. That is a trial balloon rather than a change of strategy. Whether more comes of it will only show once the acquired business appears in group results.

Why does the gross margin rise while revenue falls

Gross margin measures what is left of every dollar taken in after direct production costs. It rises when a company sells dearer products or cuts costs, but also when it drops unprofitable business. In the second case the ratio improves while the company shrinks.

Is the stock cheap if cash exceeds the market value

Not automatically. The market also prices in whether that money will ever reach shareholders. For companies based in China there are added questions about moving funds out of the country and about how much control foreign shareholders really have. A lasting discount to cash is common in this group.

What does a share price below one dollar mean

It is below the usual minimum threshold for a listing. If the threshold is missed for long enough, a warning and a deadline follow. The standard remedy is a reverse split, which lifts the price arithmetically without changing the value of the business.

What matters most at this company

Whether the existing cash is turned into a viable new business or whether losses eat it up over the years. Kandi is not a case teetering on insolvency but a company with a lot of money and a shrinking core business.

This text is not investment advice. It reports verifiable figures and puts them in context.

This analysis is for information only and is not investment advice.