Slide 1: Investor Presentation 2011
ey Mth, chakra iil lal | . Inyestor Presentation 2011 | Kandi Technologies Corporation Vier
Slide 2: Safe Harbor Statement
@) _geit, KANDI Safe Harbor Statement Information Regarding Forward-Looking Statements: Except for historical information contained herein, the statements made in the presentation are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform A
Slide 3: Kandi Technologies, Corp. (NASDAQ: KNDI)
CD KANDI Kandi Technologies, Corp. (NASDAQ: KNDI) Transforming into a World Leader in Pure Electric Vehicle (EV) Manufacturing and Specialty Vehicles Location: Jinhua, Zhejiang Province, China Founded: 2002 Listed: NASDAQ (March 2008) Kandi Technologies, Corp. is a manufacturer and exporter of go-ka
Slide 4: Financial Overview
Financial Overview Operating Cash Flow Revenue of $28.6 million 2010YTD z Tricyle ATV 0 wl 1% 1% UTV. 5 — 2006 2007 2008 al “nae -10 Net Working Capital | a Go -kart 2006 ial al | yr 2010 53% All 2010 YTD figures as of Sept. 30, 2010 Operating Cash Flow and Working Capital Surplus allow for Future G
Slide 5: Kandi's Competitive Advantages
@)_Geit, KANDI Kandi’s Competitive Advantages + Legacy Business of Off-Road Vehicles + Established global distribution channels + Electric Vehicles * Freshly designed as a “Pure EV” + Energy efficient vehicles are patent protected, designed from the ground up + Proven technology already distributed
Slide 6: Major Milestones
Major Milestones Founded in 2002 by one of China’s leading auto designers 2007: + Leading Chinese ATV exporter to the U.S. with 50,000 vehicles manufactured + Numerous innovative recreational products designed and manufactured in-house + 3-wheel motorcycle and UTV pick up + Leading vehicle test cent
Slide 7: Major Milestones (cont'd)
Major Milestones (cont'd) _i@, KANDI 2009: 2010: A Year of Historic Advances 2011: Launch of electric “COCO” - China's first pure EV production line Electric vehicle named Qualified “Plug-in” by U.S. Treasury First EV Sales Strategic alliance formed to produce EVs and create the “Express Change" Mod
Slide 8: Kandi Technologies: Market Data
@) _#i# KANDI Kandi Technologies: Market Data (as of 2/15/11) Stock Exchange: Nasdaq Market Symbol: KNDI Shares Outstanding: 27.39 million Market Cap: $112.0 million Stock Price: $4.09 52 week range: $2.75 — $7.25 Daily Trading Volume: 513,787 VWAP (3 month): $5.30 ef1010 7/4/2010 ofzi2010 9/4/Ro10
Slide 9: Product Portfolio Overview
Product Portfolio Overview Electric Super-Mini ATV Go-Kart UTV Tricycle Coco Convertible 90cc 110cc 110cec 250cc 110cce Side by Side coco ~~ Hardtop 150cc Kandi 5010 800cc 250ec Investor Presentation 2011 | Kandi Technologies Corporation
Slide 10: Off-Road Vehicles
KANDI Off-Road Vehicles Business Strategy + Develop new products + Enhance features and performance + Expand 100-dealer U.S. network to Midwest, East Coast Growth Strategies + Continue as China’s leading /premium All-Terrain Vehicle exporter to the U.S. + Leverage manufacturing efficiencies + Global
Slide 11: EV Opportunity Worldwide
—aae EV Opportunity Worldwide Rit, KANDI + Dependence on oil and air quality concerns continue to build momentum globally + The global market for electric vehicles forecasted to reach 2.4 million units by 2015 (Pike Research) + Governments such as China, Britain and U.S. have approved subsidies for
Slide 12: Number of Vehicles Owned Per 1,000 Persons
Number of Vehicles Owned Per 1,000 Persons O-# India China Brazil Russia. UK Japan France Germany us : = Vehicle ownership in emerging countries with large populations such as Chin: allowing opportunities to expand in those markets Investor Presentation 2011 | Kandi Technologies Corporation ®
Slide 13: EV Opportunity in China
7H MK EV Opportunity in China Rit, KANDI + New car sales boom due to urbanization and economic growth * China is the #1 car market in the world - 14 million new cars sold in 2009 * China has abundant rare earth element reserves - necessary components for EV production + China aims to increase the an
Slide 14: Automobile Production in China
Automobile Production in China Predicted Rate of Automobile Production Growth in China 35 30 25 20 15> © Us Auto Production (2010) 10 7 @ _Japan Auto Production (2010 : L] | i 0 2005 2006 2007 2008 2009 2010 2015 China Association of Automobile Manufacturers (CAAM) expects car production in China to
Slide 15: Enormous EV Opportunity in China
Enormous EV Opportunity in China + The Chinese government announced in June 2010 that they will be subsidizing electric cars in five cities to increase their attractiveness for buyers, reduce reliance on fossil fuels and improve air quality + Each Pure Electric Vehicle will receive subsidies up to R
Slide 16: Obstacles to Commercialization of EVs
@D_sei, KANDI Obstacles to Commercialization of EVs High cost of EVs and hybrids (battery usually the most expensive component) Long charging time Short driving range Limited or no charging facilities Battery maintenance and pollution RAE Investor Presentation 2011 | Kandi Technologies Corporation
Slide 17: Kandi's Solution
Kandi’s Solution @) _geit, KANDI Kandi’s Exclusive “Battery Express Change” Business Model: Lower Price: Separate car sales and battery sales + Cheaper than standard refueling of gasoline/diesel powered vehicle Distance: Each full battery last up to ~100 miles/150 km + “Express Change” service stati
Slide 18: Kandi's Solution (Cont'd)
@D_sei, KANDI Kandi’s Solution (Cont’d) + Working with Government and Strategic Partners: The Alliance For Chinese Electric Vehicle Development and Commercialization + Multi-corporation joint venture: Kandi, Tianneng Power Corporation, and China State Grid Power Corporation + Acomprehensive city-by-
Slide 19: Strategic Partnerships
@) _geit, KANDI Strategic Partnerships Joint Venture: Kandi, State Grid Power Corporation and Tianneng Power International: + State Grid Power Corporation is China’s largest power supply company, covering 26 provinces, totaling over 88% of China, 1 billion population * Tianneng Power International i
Slide 20: Jinhua City: The First EV Model City
je Ki | Jinhua City: The First EV Model City QD ki. KANDI *Strategic location: Kandi’s home base «Population of nearly 5 million «Located in the economically advanced Zhejiang Province «Strong local government support: First 3,000 cars to be sold will receive a subsidy of up to 50% provided by local
Slide 21: The New Model KD5010 and KD5011 EV
we, ) 7H) Ki | The New Model KD5010 and KD5011 EV QD iw, KANDI Riba, ikaw Rae + Battery: Lead Acid / Lithium-ion Wall | | j | | il PS | * Charging Time: “Express Change” i i ll vii * Speed: 45+ mph dm 8 a) SREWR BARK + Range:100 miles -150 miles + Passengers: 2 __ + Validation: Chinese government te
Slide 22: EV Creates Global Business Opportunities
@D seit KANDI EV Creates Global Business Opportunities + Battery Charging Infrastructure + Amplification of charging stations + Synergy with service and power industries + Mobility Business * Car sharing * Cooperation with public transportation facilities + Electric Vehicle Parts and Service + Equip
Slide 23: Kandi Production
Kandi Production + 110,000 square meter (1.2 million sq. ft.) manufacturing facility in Jinhua + Land coverage is 400 Mu (2.9 million sq. ft.) * Separate lines for EV, ATV, go-kart; R&D and testing space + Significant capacity for growth Investor Presentation 2011 | Kandi Technologies Corporation
Slide 24: Forward Growth Strategy
Forward Growth Strategy @) _geit, KANDI Expand Infrastructure to Meet Demand Enlist local, regional and national government support/subsidies for station construction, auto sales, etc. Alliance partners, JVs Take advantage of typical intra-city commuting by establishing city-specific models — starti
Slide 25: Experienced Management Team
@) _geit, KANDI Experienced Management Team Hu Xiaoming — Chief Executive Officer, President and Chairman of the Board of Directors since March 2002. From October 2003 to April 2005, Mr. Hu was the Project Manager (Chief Scientist) in WX Pure Electric Vehicle Development, a state-level highest-prior
Slide 26: Investment Highlights
@) _geit, KANDI Investment Highlights + China’s leading All-Terrain Vehicles (ATV) exporter to the U.S. + Emerging leader in China’s burgeoning Electric Vehicle (EV) market — a top government priority + Kandi EV is approved for sale by Chinese government and sales have commenced in the U.S. and Chin
Slide 27: Appendix
@) _geit, KANDI Appendix
Slide 28: Historical Financial Highlights
@) _geit, KANDI Historical Financial Highlights FYE 12/31 ($ millions) 2007 2008 2009 Revenue $33.4 $40.5 $33.8 Gross Profit $7.2 $9.6 $8.2 Net Income $5.0 $4.9 $1.0 Gross Margin % 21.6% 23.7% 24.2% Note: Results for 2008 and 2009 were affected by the global economic downturn Investor Presentation 2
Slide 29: Current Financial Highlights
Current Financial Highlights @) _geit, KANDI 9 Months 2009 9 Months 2010 ($ millions) (Unaudited) (Unaudited) Revenue $19.1 $28.6 Gross Profit $4.8 $6.5 Net Income $0.2 $(0.7) Adjusted Net Income (a) $1.1 $3.1 Cash Flow from $(5.2) $74 Operations (@) Adjusted NI (Non-GAAP) excludes convertible notes
Slide 30: Balance Sheet Summary
@) _i# KANDI Balance Sheet Summary 30-Sep-10 ($ millions) 2009 (Unaudited) Cash and Cash Equivalent (a) $5.9 $13.3 Current Liabilities $42.1 $50.6 Current Assets $30.0 $53.6 Total Assets $64.1 $86.3 (a) Includes restricted cash of $5.7mm for 2009 and $9.9mm for first nine month of 2010. Investor Pre
Slide 31: Contact Information
@) _ei, KANDI Contact Information Company Contact: Cathy Cao Executive Vice President Kandi Technologies Corp. cathy@kandigroup.com cathy_kndi@yahoo.com (212) 551-3610 PR Contact: Mike Houston or Jeff Tryka, CFA Lambert, Edwards & Associates mhouston@lambert-edwards.com jtryka@lambert-edwards.com (8