Kandi Technologies Group reported a 57.4% increase in first-half revenue to $57.1 million as the electric and off-road vehicle company returned to operating profitability and significantly increased net income. The results were disclosed in a September 28 Form 6-K filed with the U.S. Securities and Exchange Commission covering the six months ended June 30, 2026.
Net revenue rose from $36.3 million in the first half of 2025 to $57.1 million in the latest period. Kandi attributed the increase primarily to higher sales of off-road vehicles and additional revenue from Rawrr Inc., which the company acquired in February 2026 under a share transfer agreement signed in December 2025.
Off-road vehicles and associated parts generated $54.2 million of revenue during the first half, up 59.4% from $34.0 million a year earlier. The category accounted for roughly 95% of Kandi’s total first-half revenue, underscoring its importance to the company’s current business mix.
Gross profit increased 51.5% to $24.8 million from $16.4 million. Despite the increase in gross profit, the gross margin narrowed to 43.5% from 45.2%, as cost of goods sold increased 62.3% to $32.3 million.
The company also moved into positive operating income. Kandi reported $5.5 million of income from operations for the first half of 2026, compared with an operating loss of $1.9 million in the same period of 2025. Operating expenses rose only 5.3% to $19.3 million, with research and development expense falling 3.5% to $2.4 million, while selling and distribution costs rose 10% to $5 million.
General and administrative expenses increased 5.4% to $11.9 million. The relatively modest increase in operating expenses compared with revenue growth contributed to the change in operating results, with the company’s operating margin reaching 9.7%, compared with negative 5.3% a year earlier.
Net income climbed to $9.4 million from $1.7 million in the first half of 2025, an increase of 452.2%. Net income attributable to Kandi shareholders was $9.3 million, compared with $1.7 million a year earlier, while basic and diluted earnings per share increased to $0.10 from $0.02.
Kandi’s results also benefited from other income during the period. Interest income was $3.6 million, down from $4.3 million a year earlier, while interest expense declined to $679,000 from $1.1 million. Government grants fell to $322,000 from $1.1 million, and total other income was $3.6 million, compared with $3.5 million in the first half of 2025.
The company reported a substantial liquidity position at the end of June. Cash and cash equivalents, restricted cash and certificates of deposit totaled $285.7 million, while working capital stood at $189.5 million. The balance sheet showed total assets of $461.4 million and total liabilities of $153.7 million as of June 30.
Kandi’s current assets included $14.6 million of cash and cash equivalents, $62.1 million of restricted cash and $209 million in certificates of deposit. Total current liabilities were $150.6 million, including $43.3 million in short-term loans and $27 million in notes payable.
The company said the increase in first-half revenue was mainly driven by stronger off-road vehicle sales and the contribution from Rawrr following its acquisition. Kandi manufactures and sells electric vehicles, off-road vehicles and related products, with its operations centered in China and sales extending to international markets.
The latest results mark a significant change from Kandi’s full-year 2025 performance, when annual revenue fell 31.5% to $87.4 million from $127.6 million in 2024. The company reported in its 2025 annual filing that the decline reflected weaker demand for electric vehicle products in China and lower sales of crossover golf carts and other vehicle models.
The first-half 2026 filing does not provide full-year guidance. Kandi’s reported results therefore reflect performance through June 30 rather than a forecast for the remainder of the year.
