Kandi Technologies posts 57% revenue rise as EV and battery units gain
Kandi Technologies Group (NASDAQ: KNDI) has reported first-half 2026 net revenues of $57.1 million, a 57.4% increase on the $36.3 million recorded in the same period a year earlier. Net income reached $9.4 million, compared with $1.7 million in H1 2025, a gain the company attributes largely to higher sales volumes and the contribution of Rawrr, the premium electric off-road motorcycle brand it acquired in February 2026.
The results represent a meaningful swing to operating profitability. Income from operations was $5.5 million against an operating loss of $1.9 million in the prior-year period. Gross margin narrowed slightly, to 43.5% from 45.2%, as cost of goods sold rose 62.3% in line with higher volumes. Operating expenses grew by a more modest 5.3%, reaching $19.3 million, which CEO Feng Chen described as evidence of improved operating leverage. The balance sheet ended the period with $285.7 million in cash, restricted cash and certificates of deposit, up from $211.9 million at the end of 2025.
Acquisitions and new market entries
Beyond the Rawrr integration, Kandi made two other notable moves in the period. In June 2026 it agreed to acquire a 51% controlling stake in Hangzhou Xinchu New Energy Technology for RMB20 million (approximately $2.9 million). Xinchu manufactures lithium battery backup power systems and battery management hardware for AI data centres, telecom base stations and high-density GPU computing environments. The transaction closed in the third quarter. The entry into AI data-centre backup power is a strategic pivot for Kandi, connecting the company's battery manufacturing heritage to one of the fastest-growing power-demand verticals globally.
Also during the period, subsidiary China Battery Exchange secured an order from CATL's QIJI Energy unit for 18 heavy-truck battery swap stations, the first commercial batch under a three-year agreement signed in January 2026. A new manufacturing facility in Lin'an, Zhejiang, commenced production in July, with a stated annual capacity of up to 200 heavy-duty truck battery swap stations. A separate five-year deal was signed with Zhejiang Greentown Community Business Group to deploy low-speed electric sightseeing vehicles across residential properties in China, giving Kandi a recurring-revenue community mobility channel.
Market context and competitive positioning
Kandi operates across several distinct hardware segments: North American off-road EVs, Chinese community mobility vehicles, heavy-truck battery swapping, and now data-centre backup power. This diversification strategy is common among mid-cap Chinese hardware exporters seeking to reduce dependence on any single regulatory or demand environment, particularly given ongoing US tariff pressure on Chinese-made vehicles.
The battery swap segment is crowded in China, with NIO's Power unit, CATL-backed ventures and a range of fleet-focused operators all competing for commercial contracts. The CATL QIJI relationship is a meaningful endorsement for China Battery Exchange, given CATL's dominant position in the domestic battery supply chain, though the terms and scale of the three-year agreement have not been disclosed in full.
On the data-centre power side, Xinchu's target markets in Southeast Asia, the Middle East and Africa place Kandi outside the most competitive tier-one data-centre markets but squarely in regions where AI infrastructure build-out is accelerating and backup-power reliability is a critical procurement criterion. This positions the acquisition as a low-cost entry into a high-growth vertical rather than a direct challenge to established uninterruptible power supply vendors.
Investors will watch for named customer wins from Xinchu, further Rawrr product launches flagged by management for 2027, and evidence that the Lin'an swap-station facility is ramping to its stated capacity target.