UNITED
STATES

 SECURITIES
AND EXCHANGE COMMISSION

 Washington,
D.C. 20549

 FORM

 (Mark One)

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal
year ended December 31, 2023

 or

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition
period from ________ to ________

 Commission file
number 001-33997

 KANDI
TECHNOLOGIES GROUP, INC.

 (Exact name of
registrant as specified in charter)

 Delaware

 90-0363723

 (State or other jurisdiction of

 (I.R.S. Employer

 incorporation or organization)

 Identification No.)

 Jinhua New Energy Vehicle Town
 Jinhua, Zhejiang Province
 People's Republic of China

 321016

 (Address of principal executive offices)

 (Zip Code)

 (86
- 579) 82239856

 (Registrant's
telephone number, including area code)

 Securities registered
pursuant to Section 12(b) of the Act:

 Title of each class

 Trading Symbol(s)

 Name of each exchange on which registered

 KNDI

 NASDAQ Global Select Market

mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes No

mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. Yes No

 Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant
to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files). Yes No

mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or
an emerging growth company. See definitions of "large accelerated filer," "accelerated filer" "smaller reporting
company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer

 Accelerated filer

 Non-accelerated filer

 Smaller reporting company

 Emerging growth company

 If an emerging
growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal
control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting
firm that prepared or issued its audit report.

 If securities are
registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in
the filing reflect the correction of an error to previously issued financial statements.

 Indicate by check mark whether any of those error
corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's
executive officers during the relevant recovery period pursuant to §240.10D-1(b).

mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

 The aggregate
market value of voting and non-voting common stock held by non-affiliates of the registrant as of June 30, 2023, the last business day
of the registrant's second fiscal quarter, was approximately $ 237,630,412.80.

 The number of shares of common stock issued and
outstanding as of March 8, 2024 was 87,542,800 and 87,358,234, respectively.

 DOCUMENTS INCORPORATED
BY REFERENCE:

 None.

 TABLE
OF CONTENTS

 Item 1.

 Business.

 Item 1A.

 Risk Factors.

 Item 1B.

 Unresolved Staff Comments.

 Item 1C.

 Cybersecurity.

 Item 2.

 Properties.

 Item 3.

 Legal Proceedings.

 Item 4.

 Mine Safety Disclosures.

 Item 5.

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchase Equity Securities.

 Item 6.

 [Reserved]

 Item 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations.

 Item 7A.

 Quantitative and Qualitative Disclosures about Market Risk.

 Item 8.

 Financial Statements and Supplementary Data.

 Item 9.

 Changes In and Disagreements With Accountants on Accounting and Financial Disclosure.

 Item 9A.

 Controls and Procedures.

 Item 9B.

 Other Information.

 Item 9C.

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

 Item 10.

 Directors, Executive Officers and Corporate Governance.

 Item 11.

 Executive Compensation.

 Item 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

 Item 13.

 Certain Relationships and Related Transactions and Director Independence.

 Item 14.

 Principal Accounting Fees and Services.

 Item 15.

 Exhibits, Financial Statement Schedules.

 SIGNATURES

 i

 SPECIAL
NOTE REGARDING FORWARD -LOOKING STATEMENTS

 This Annual Report
contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. These include statements about our expectations, beliefs, intentions or strategies
for the future, which we indicate by words or phrases such as "anticipate," "expect," intend," "plan,"
"will," "we believe," "our company believes," management believes" and similar language. These
forward-looking statements are based on our current expectations and are subject to certain risks, uncertainties and assumptions, including
those set forth in the discussion under Item 1, "Business", Item 1A, "Risk Factors" and Item 7, "Management's
Discussion and Analysis of Financial Condition and Results of Operations." Our actual results may differ materially from results
anticipated in these forward-looking statements. We base our forward -looking statements on information currently available to us, and
we assume no obligation to update them. In addition, our historical financial performance is not necessarily indicative of the results
that may be expected in the future and we believe such comparisons cannot be relied upon as indicators of future performance.

 Although we believe
that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity,
performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend
to update any of the forward-looking statements to conform these statements to actual results.

 ii

 PART
I

 Except as otherwise
indicated in this Annual Report, references to

 "China", or "PRC" refers to the People's
Republic of China.

 "China Battery Exchange" refers to China Battery
Exchange (Zhejiang) Technology Co., Ltd.

 "Continental" refers to Continental Development
Limited

 "Fengsheng" refers to Fengsheng Automotive Technology
Group Co., Ltd., formerly known as Zhejiang Kandi Electric Vehicles Co., Ltd.

 "Hengrun" refers to Hunan Hengrun Automobile
Co., Ltd.

 "Hainan Kandi Holding" refers to Hainan Kandi
Holding New Energy Technology Co., Ltd.

 "Jiangxi Huiyi" refers to Jiangxi Province Huiyi
New Energy Co., Ltd.

 "Kandi BVI" refers to Kandi Technologies Group, Inc., a British Virgin Islands company.

 "Kandi Innovation" refers to Kandi Electric Innovation, Inc., a Nevada company.

 "Kandi Hainan" refers to Kandi Electric Vehicles
(Hainan) Co., Ltd.

 "Kandi Canada" refers to Kandi Technologies Canada, Inc.

 "NGI" refers to Northern Group, Inc.

 "Kandi Investment" refers to Kandi America Investment,
LLC.

 "Kandi New Energy" refers to Jinhua Kandi New
Energy Vehicles Co., Ltd.

 "Kandi Technologies" refers to Kandi Technologies Group,
Inc., a Delaware company.

 "Kandi Smart Battery Swap" refers to Zhejiang
Kandi Smart Battery Swap Technology Co., Ltd., formerly known as Jinhua An Kao Power Technology Co., Ltd., or "Jinhua An Kao".

 "PRC operating entities" refers to Kandi Technologies'
subsidiaries, including Zhejiang Kandi Technologies, China Battery Exchange, Kandi New Energy, Kandi Smart Battery Swap, Yongkang Scrou,
Kandi Hainan, Jiangxi Huiyi, and Hainan Kandi Holdings New Energy Technology, Co., Ltd.

 "RMB" and "Renminbi" both refer to
the legal currency of China.

 "Ruiheng" refers to Zhejiang Ruiheng Technology
Co., Ltd.

 "SC Autosports" refers to SC AutoSports, LLC.,
formerly known as Sportsman Country, LLC

 "US$", "U.S. dollars", "$",
and dollars" all refer to the legal currency of the United States.

 "We," "us," "our," "Kandi,"
or the "Company" are to the combined businesses of Kandi Technologies Group, Inc.

 "Yongkang Scrou" refers to Yongkang Scrou Electric
Co., Ltd.

 "Zhejiang Kandi Technologies" refers to Zhejiang
Kandi Technologies Group, Co. Ltd., formerly known as Zhejiang Kandi Vehicles Co., Ltd., or "Kandi Vehicles".

 Kandi Technologies
use U.S. dollars as reporting currency in our financial statements and in this Annual Report. Monetary assets and liabilities denominated
in Renminbi are translated into U.S. dollars at the rates of exchange as of the balance sheet date, equity accounts are translated at
historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the period. In other parts
of this Annual Report, any Renminbi denominated amounts are accompanied by translations. We make no representation that the Renminbi or
U.S. dollar amounts referred to in this Annual Report could have been or could be converted into U.S. dollars or Renminbi, as the case
may be, at any particular rate or at all. The PRC government restricts or prohibits the conversion of Renminbi into foreign currency and
foreign currency into Renminbi for certain types of transactions.

 Item 1. Business
Introduction

 Our Core Business

 Kandi Technologies
is a Delaware holding company, with its common stock being traded on the NASDAQ Global Select Market. As a holding company with no
material operations of its own, a substantial majority of the operations are conducted through our wholly-owned subsidiaries established
in the People's Republic of China, or the PRC, including Zhejiang Kandi Technologies and its subsidiaries and U.S. wholly-owned
subsidiaries SC Autosports and its subsidiary.

 Originally, the Company's primary business
operations consist of designing, developing, manufacturing and commercializing electric vehicle ("EV") products and EV parts.
In recent years, some EV enterprises in China are seizing market share at the cost of huge losses. The Company realized that the EV market
of China has not reached a healthy and orderly development stage. Therefore, the Company started to adjust the company's development strategy
after 2020. With the global trend of "fuel to electrification" of off-road vehicles becoming more and more obvious, the Company
has been focusing on the production of pure electric off-road vehicles. Our goal is to achieve a leading position in the field of pure
electric off-road vehicles within three years.

 The Company does
not believe that our major business is within the targeted areas of concern by the Chinese government. However, Kandi Technologies is
a holding company in Delaware and our majority of business is conducted through the operations by Company's subsidiaries and pre-existed
VIE in the PRC. Therefore, there is a risk that the Chinese government may in the future seek to affect operations of any company with
any level of operations in the PRC, including its ability to offer securities to investors, list its securities on a U.S. or other foreign
exchange, conduct its business or accept foreign investment. Additionally, we are subject to certain legal and operational risks associated
with our operations in China. PRC laws and regulations governing our current business operations are uncertain, and therefore, these risks
may result in a material change in the Company's operations, significant depreciation of the value of our common stock, or a complete
hindrance of our ability to offer or continue to offer our securities to investors. Due to the fact that PRC does not have treaties providing
for the reciprocal recognition and enforcement of judgments of courts with the United States and many other countries and regions, direct
recognition and enforcement in PRC of judgments of a court in any of these non-PRC jurisdictions in relation to any matter not subject
to a binding arbitration provision may be difficult, time-consuming, costly or even impossible, the investors may even need to sue again
in one of the courts under PRC jurisdiction. Therefore, our investors may experience difficulties in effecting service of legal process,
enforcing judgements or bringing original actions based on United States or foreign laws against us or our management. Changes in currency
conversion policies in China and fluctuation in exchange rates may also have a material adverse effect on our business and the value of
our securities. During the previous few decades, the economy of China had experienced unprecedented growth. This growth has slowed in
the recent years, and if the growth of the economy continues to slow or if the economy contracts, our financial condition may be materially
and adversely affected. Recently, the PRC government initiated a series of regulatory actions and statements to regulate business operations
in China with little advance notice, including cracking down on illegal activities in the securities market, adopting new measures to
extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement. Since these statements and regulatory
actions are new, it is highly uncertain how soon legislative or administrative regulation making bodies will respond and what existing
or new laws or regulations or detailed implementations and interpretations will be modified or promulgated, if any, and the potential
impact of such modified or new laws and regulations will have on our daily business operation, the ability to accept foreign investments
and list on an U.S. or other foreign exchange.

 For a more detailed
description of the risks regarding our business structure, please see "Risks Related to Doing Business in China" in pages
22-29. It is still unclear about the scope and the impact of these new regulations, however, these risks could result in a material change
in the value of our securities or cause the value of our securities to significantly decline or be worthless.

 Our Organizational
Structure

organizational chart as of the date of this report is as follows:

 Please refer to
the discussion in NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES of the Notes to the Consolidated Financial Statements under Item 8 of
this Annual Report for a narrative of our organization structure and operating subsidiaries, including their dates of incorporation and
history.

 Reincorporation

 On December 27, 2023, the shareholders of the Company approved the
merger agreement and plan of merger, that the Company is to merge with and into Kandi BVI, with Kandi BVI as the surviving company upon
the merger becoming effective in the second quarter of 2024 (the "Reincorporation").

 Industry Overview

 Over the years, governments and the automobile
manufacturers have reached a consensus on the importance of diversifying the automobile industry and utilizing various energy resources.
China is one of the world's largest automobile markets as China has relatively scarce fuel reserves but rich natural resources of
electric power. As a result, the Chinese government has been implementing industrial policies of supporting new energy vehicles. The diversified
market with the coexistence of traditional fuel vehicles, plug-in hybrid vehicles and pure electric vehicles has been initially formed.
The Company believes China is a huge prospective market for pure electric vehicles. In recent years, some EV enterprises in China are
seizing market share at the cost of huge losses. The Company realized that the EV market of China has not reached a healthy and orderly
development stage. The Company also believes that in the global automobile industry, there is great development space for the Chinese
electric vehicles and their core parts industry in the future. Meanwhile, with the global trend of "fuel to electrification"
of off-road vehicles becoming more and more obvious and huge market demand, management believes this industry still has huge development
space. A majority of the Company's products are pure electric off-road vehicles include utility vehicles (UTVs), ATVs, golf carts, go karts, etc. The largest
market of pure electric off-road vehicles is in the United States.

 Competitive
Landscape

 In general, the
EV and electric off-road vehicles business faces competition from two groups of competitors: traditional vehicle manufacturers and new
market entrants.

 In terms of competition
with conventional fuel vehicle and off-road vehicles manufacturers, many of the conventional fuel vehicle manufacturers are much larger
in terms of size, manufacturing capabilities, customer bases, financial, marketing and human resources than the electric vehicle and electric
off-road vehicles manufacturers. However, the conventional fuel vehicles and off-road vehicles face many challenges, including but not
limited to environmental pollution and energy scarcity, which in turn provide great opportunities for the rapid development of the EV
and electric off-road vehicles industry.

 Our Opportunities
and Growth Strategy

 Due to worsening
air pollution and concerns about petroleum resource dependence, the new energy industry is developing vigorously. Given its technology
innovation with integrated solutions and operation experience, Kandi has benefited from the development of EV and electric off-road vehicles
industry.

 The Company's business strategy includes
efforts to provide customers with high-quality products, to expand the footprint in new and existing markets, and to advance our profile
and the market demand through the further innovations. The Company also provides products to end users through retail stores and our distributors.

 As the largest market
of pure electric off-road vehicles is in the United States, Kandi Technologies focus on the development of its wholly-owned subsidiary based
in Dallas, SC Autosports, specialized in the sales in the United States. It has a seasoned management team with personnel over ten years
of business experience, which has laid a good foundation for the sales of the Company's products in the US market. On November
30, 2023, Kandi Technologies, through its wholly owned subsidiary, SC Autosports, acquired Northern Group, Inc. ("NGI"), a
Wisconsin incorporated company that has extensive sales experience and sales channels in the United States rooted in wholesale, retail,
supply chain and analytics solutions. The acquisition allows the expansion of the SC Autosports' and the Company's sales pipelines
through vertical integration and thus enhance the growth of sales.

 Our Products

 General

 For the years ended December
31, 2023 and 2022, our products primarily consist of EV parts, EV products, and off-road vehicles including All-Terrain Vehicles
("ATVs"), UTVs, go-karts, and electric scooters, electric self-balancing Scooters and associated parts, and Lithium-ion cells,
etc. Based on our market research on consumer demand trends, the Company has adjusted our production line strategically and continue to
develop and manufacture new products in an effort to meet market demand and better serve our customers.

shows the breakdown of our net revenues:

 2023

 2022

 Primary geographical markets

 U.S. and other countries/areas

 $
 93,979,363

 $
 65,871,112

 China

 29,619,869

 51,941,937

 Total

 $

 $

 Major products and Services

 $

 $

 -

 Total

 $

 $

 Timing of revenue recognition

 Products transferred at a point in time

 $
 123,359,756

 $

 Sales transactions completed at a point in time

 -

 Total

 $

 $

 Sales and Distribution

 Because our products are manufactured in China, there are two major
sales modes of our products sold to the countries and regions other than China market: the first mode is indirect sales to Chinese import
and export trading companies for sales to the countries and regions out of China, and the second is direct sales to retail stores and
dealers of the countries and regions out of China. Our products sold in China are mainly through our sales department to sign sales contracts
directly with customers.

 The Company jointly
manufactures the K23 model with Hunan Hengrun Automobile Co., Ltd. ("Hengrun"), whose manufacture license was granted in June
2022. This product is sold in the China market through our sales department by signing sales contracts directly with customers.

 Customers

 For the years
ended December 31, 2023 and 2022, the major customers of our operating subsidiaries, in the aggregate, accounted for 55% and 26% of our
sales. Our operating subsidiaries are working on developing new business partners and clients for our products to reduce our dependence
on existing customers and is focusing our new business development efforts on pure electric off-road vehicle business.

December 31, 2023 and 2022, the Company's major customers, each of whom accounted for more than 10% of our consolidated revenue,
were as follows:

 Sales

 Trade Receivable

 Major Customers

 2023

 2023

 2022

 Customer A

 %

 %

 %

 Customer B

 %

 %

 -

 Customer C

 %

 %

 -

 Sales

 Trade Receivable

 Major Customers

 2022

 2022

 2021

 Customer A

 %

 %

 -

 Sources
of Supply

 All raw materials
are purchased from suppliers. Our operating subsidiaries have developed close relationships with several key suppliers particularly in
the procurement of certain key parts. While our operating subsidiaries obtain components from multiple third-party sources in some cases,
the Company does not have, and do not anticipate to have, any difficulty in obtaining required materials from our suppliers. The Company
believes that our operating subsidiaries have adequate supplies or sources of availability of the raw materials necessary to meet our
manufacturing and supply requirements.

December 31, 2023 and 2022, our operating subsidiaries' material suppliers, each of whom accounted for more than 10% of our total
purchases, were as follows:

 Accounts Payable

 Major Suppliers

 2023

 2023

 2022

 Zhejiang Kandi Supply Chain Management Co., Ltd. (1)

 %

 %

 %

 Accounts Payable

 Major Suppliers

 2022

 2022

 2021

 Zhejiang Kandi Supply Chain Management Co., Ltd. (1)

 %

 %

 %

 (1)

 Zhejiang Kandi Technologies owns 10% equity interest of the supplier.

 Intellectual
Property and Licenses

 The
Company's success partially depends on our ability to protect our core technology and intellectual property. We rely on a
combination of patents, patent applications, trademarks, copyrights and trade secret protection laws in China and other
jurisdictions, as well as confidentiality procedures and contractual provisions to protect our intellectual property and our brand.
As of December 31, 2023, Zhejiang Kandi Technologies had a total of 90 valid patents and 2 software copyrights, including 2
invention patent, 51 utility model patents and 37 appearance design patents. As of December 31, 2023, Kandi Smart Battery Swap had a
total of 96 valid patents and 4 software copyrights, including 77 utility model patents, 12 appearance design patents and 7
invention patents. As of December 31, 2023, Kandi New Energy had a total of 6 valid patents, including 2 utility model patents and 4
appearance design patents. As of December 31, 2023, Yongkang Scrou had a total of 25 valid patents, including 11 utility model
patents and 14 appearance design patents. As of December 31, 2023, Kandi Hainan had a total of 36 valid patents, including 33
utility model patents, 2 invention patent and 1 appearance design patents. As of December 31, 2023, China Battery Exchange and its
subsidiaries had a total of 3 valid utility model patents and 10 software copyrights. As of December 31, 2023, Jiangxi Huiyi had a
total of 51 valid patents, including 9 invention patents, 31 utility model patents and 11 appearance design patents. As of December
31, 2023, Hainan Kandi Holding had a total of 4 valid patents, including 3 utility model patents and 1 appearance design patents.
Under Chinese patent law, the utility model patents and appearance design patents shall be valid until 10 years after the date of
application. The invention patents shall be valid until 20 years after the date of application. Among the Company's valid
utility model patents, the earliest expiration date is January 2024 and the latest is February 2033. Among the Company's valid
appearance design patents, the earliest expiration date is September 2024 and the latest is September 2033. Among the
Company's valid invention patents, the earliest expiration date is November 2035 and the latest is April 2041. In addition,
The Company is authorized to use the trademark "Kandi" in the PRC and the U.S. The Company intends to continue to file
additional patent applications with respect to our technology.

Technologies, Kandi Smart Battery Swap, Kandi Hainan, and Jiangxi Huiyi are are recognized as a national High and New Technology Enterprises.
The certification shall be renewed every three years. The status of being a national High and New Technology Enterprise qualifies for
a preferred 15% income tax rate, as opposed to a standard corporate income tax rate at 25%.

 Employees

 As of December
31, 2023, excluding contractors and employees with the affiliate company, Kandi had a total of 840 full-time employees, as compared to
971 full-time employees as of December 31, 2022, of which 488 employees are production personnel, 44 employees are sales personnel, 88
employees are research and development personnel, and 220 employees are administrative personnel. None of our employees are covered by
collective bargaining agreements. We consider our relationships with our employees to be good. We also employ consultants on an as-needed
basis.

 Environmental
and Safety Regulation

 Emissions

 Our products are
all subject to international laws and emissions related standards and regulations, including regulations and related standards established
by China Environmental Protection Agency, the United States Environmental Protection Agency, the California Air Resources Board, and
European and Canadian legislative bodies.

 According to the
management's knowledge, the Company's products have been designed and developed according to the environmental regulations
of the target market since the research and development period, and have passed the corresponding tests before the products are put into
production and sales, and obtained the compulsory product certification of the corresponding countries and regions.

 If the standards
and rules are modified, or interpreted differently, or the product certification certificate expires, the Company will evaluate the product
and restart the corresponding product design improvement and product testing/certification procedures to continuously ensure the target
market environment regulatory compliance. The Company cannot estimate the extent to which these changes, if any, will affect our operating
costs in the future.

 Product Safety
and Regulation

 Safety Regulation

 The U.S. federal
government and individual states have adopted, or are considering the adoption of, laws and regulations relating to the use and safety
of Kandi's products. The federal government is the primary regulator of product safety. The Consumer Product Safety Commission ("CPSC")
has federal oversight over product safety issues related to ATVs and off-road vehicles. The National Highway Transportation Safety Administration
("NHTSA") has federal oversight over product safety issues related to off-road vehicles and regulates the safety of electric
vehicles for road vehicles.

 In August 2008,
the Consumer Product Safety Improvement Act (the "Product Safety Act") was passed. The Product Safety Act requires all manufacturers
and distributors who import into or distribute ATVs within the United States to comply with the American National Standards Institute/Specialty
Vehicle Institute of America ("ANSI/SVIA") safety standard, which previously had been voluntary. The Product Safety Act also
requires the same manufacturers and distributors to have ATV action plans filed with the CPSC that are substantially similar to the voluntary
action plans that were previously in effect. Both Kandi and SC Autosports currently comply with the ANSI/SVIA standard.

 Kandi's off-road
vehicles are subject to federal vehicle safety standards administered by NHTSA. Kandi's off-road vehicles are also subject to various
state vehicle safety standards. Kandi believes that its off-road vehicles comply with safety standards applicable to off-road vehicles.

 Kandi's off-road
vehicles are also subject to international safety standards in places where it sells its products outside the United States. Kandi believes
that its off-road vehicle products comply with applicable safety standards in the United States and internationally.

 Permission
and Approvals

lists all the material permission and approvals the Company and its subsidiaries hold to operate business in PRC, as of December 31, 2023:

 Company

 License/Permission

 Issuing Authority

 Validity

 Zhejiang Kandi Technologies Group, Co. Ltd.

 Market Supervision and Administration Bureau of Jinhua City

 Until March 12, 2052

 Zhejiang Kandi Technologies Group, Co. Ltd.

 Jinhua Kandi New Energy Vehicle Co., Ltd.

 Market Supervision and Administration Bureau of Jinhua City

 Until May 26, 2030

 Jinhua Kandi New Energy Vehicle Co., Ltd.

 Zhejiang Kandi Smart Battery Swap Technology Co., Ltd

 Market Supervision and Administration Bureau of Jinhua City

 Zhejiang Kandi Smart Battery Swap Technology Co., Ltd

 Yongkang Scrou Electric Co, Ltd.

 Market Supervision and Administration Bureau of Yongkang City

 Until November 17, 2031

 Kandi Electric Vehicles (Hainan) Co., Ltd.

 Market Supervision and Administration Bureau of Hainan Province

 Kandi Electric Vehicles (Hainan) Co., Ltd.

 Kandi Electric Vehicles (Hainan) Co., Ltd.

 Pollutant Discharge Permit

 Haikou High-tech Zone

 Until February 8, 2028

 China Battery Exchange (Zhejiang) Technology Co., Ltd.

 Market Supervision and Administration Bureau of Xihu District, Hangzhou City

 Until September 13, 2050

 China Battery Exchange (Hainan) Technology Co., Ltd.

 Market Supervision and Administration Bureau of Hainan Province

 Jiangxi Province Huiyi New Energy Co., Ltd.

 Market Supervision and Administration Bureau of Xinyu City High tech Zone

 Jiangxi Province Huiyi New Energy Co., Ltd.

 Jiangxi Province Huiyi New Energy Co., Ltd.

 Environmental impact assessment

 Environmental Protection Bureau of Xinyu City

 Jiangxi Province Huiyi New Energy Co., Ltd.

 Pollutant Discharge Permit

 Xinyu High Tech Ecological Environment Bureau

 Until July 18, 2027

 Hainan Kandi Holding New Energy Technology Co., Ltd.

 Market Supervision and Administration Bureau of Hainan Province

 Until February 18, 2042

 Those listed
above constitute all the requisite permissions or approvals the Company and its subsidiaries required to operate business in the PRC. The
Company and its subsidiaries have never been denied any applications concerning any permissions or approvals. If the Company or its
subsidiaries does not receive or maintain such permissions or approvals, or mistakenly conclude that such permissions or approvals
are not required, our business may be adversely affected. In the scenario when the Company does get denied such permissions, the
Company would either avoid such field of business, or collaborate with parties that can obtain such permissions. Currently the PRC
legal system is under constant development and applicable laws, regulations, or interpretations are subject to substantial
uncertainties. If relevant rules suddenly change, we will have to obtain such permissions or approvals, which may be costly, and may
temporarily halt our operation of business, negatively affecting our revenues and our securities' value.

 CAC Review

 The management
believes that as of the date of this report: (i) the Company does not hold personal information of over one million users; (ii) the Company
and its subsidiaries have not been informed by any PRC governmental authority of any requirement that it file for a cybersecurity review;
and (iii) the Company and its subsidiaries have never disclosed any customer or supplier information within China (except when requested
by related parties, the company and its subsidiaries tailor their customer or supplier information disclosures to the narrowest possible
scope), therefore, the Company believes it is not required to pass cybersecurity review of CAC. We are also not aware that there are relevant
laws or regulations in the PRC explicitly requiring us to seek approval from the China Securities Regulatory Commission for our overseas
listing. Further, as of the date of this report, Kandi Technologies and its subsidiaries 1) did not collect any data that will or may
negatively influence PRC's national security; and 2) strictly follow the relevant PRC laws and regulations. Since these statements
and regulatory actions are new, however, official guidance and related implementation rules have not been issued. It is highly uncertain
what the potential impact such modified or new laws and regulations will have on the daily business operations of our subsidiaries, our
ability to accept foreign investments, and our listing on a U.S. exchange. The PRC regulatory authorities may in the future promulgate
laws, regulations, or implementing rules that require us, our subsidiaries to obtain regulatory approval from Chinese authorities for
listing in the U.S. If we do not receive or maintain the approval, or inadvertently conclude that such approval is not required, or applicable
laws, regulations, or interpretations change such that we are required to obtain approval in the future, we may be subject to an investigation
by competent regulators, fines or penalties, or an order prohibiting us from conducting an offering, and these risks could result in a
material adverse change in our operations and the value of our common stock, significantly limit or completely hinder our ability to offer
or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless.

 CSRC Filing
Requirements

 On December 24,
2021, the China Securities Regulatory Commission, or the "CSRC", published draft regulations (the "Draft Rules")
on domestic enterprises issuing securities and being listed overseas. The Draft Rules lay out specific filing requirements for overseas
listing and offering by PRC domestic companies and include unified regulation management and strengthening regulatory coordination. On
February 17, 2023, the CSRC promulgated the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies
(the "Trial Measures"), which took effect on March 31, 2023. The Trial Measures supersede the Draft Rules and clarified and
emphasized several aspects, which include but are not limited to: (1) criteria to determine whether an issuer will be required to go through
the filing procedures under the Trial Measures; (2) exemptions from immediate filing requirements for issuers including those that have
already been listed or registered but not yet listed in foreign securities markets, including U.S. markets, prior to the effective date
of the Trial Measures; (3) a negative list of types of issuers banned from listing or offering overseas, such as issuers whose affiliates
have been recently convicted of bribery and corruption; (4) issuers' compliance with web security, data security, and other national
security laws and regulations; (5) issuers' filing and reporting obligations, such as obligation to file with the CSRC after it
submits an application for initial public offering to overseas regulators, and obligation after offering or listing overseas to report
to the CSRC material events including change of control or voluntary or forced delisting of the issuer; and (6) the CSRC's authority
to fine both issuers and their shareholders for failure to comply with the Trial Measures, including failure to comply with filing obligations
or committing fraud and misrepresentation. Because we are already publicly listed in the U.S., the Trial Measures do not impose additional
regulatory burden on us beyond the obligation to report to the CSRC any future offerings of our securities, or material events such as
a change of control or delisting. As the Trial Measures are newly issued, there remains uncertainty as to how it will be interpreted or
implemented. Therefore, there is uncertainty that if we are subject to such filing requirements under the Trial Measures, we will be able
to get clearance from the CSRC in a timely fashion.

 Auditors'
Regulations

 As auditors of companies that are traded publicly in the United States
and a firm registered with the PCAOB, our auditor is required by the laws of the United States to undergo regular inspections by the PCAOB.
However, to the extent that our auditor's work papers become located in China, such work papers will not be subject to inspection
by the PCAOB because the PCAOB is currently unable to conduct inspections without the approval of the Chinese authorities. Inspections
of certain other firms that the PCAOB has conducted outside of China have identified deficiencies in those firms' audit procedures
and quality control procedures, which may be addressed as part of the inspection process to improve future audit quality. We are required
by the Holding Foreign Companies Accountable Act ("HFCAA") to have an auditor that is subject to the inspection by the PCAOB.
Our present auditor is subject to the review of PCAOB and the PCAOB is able to conduct inspections on our present auditor, to the extent
this status changes in the future and our auditor's audit documentation related to their audit reports for our company becomes outside
of the inspection by the PCAOB or if the PCAOB is unable to inspect or investigate completely our auditor because of a position taken
by an authority in a foreign jurisdiction, trading in our common stock could be prohibited under the HFCAA, and as a result our common
stock could be delisted from Nasdaq.

 On May 13, 2021,
the PCAOB proposed a new rule for implementing the HFCAA. Among other things, the proposed rule provides a framework for the PCAOB to
use when determining, under the HFCAA, whether it is unable to inspect or investigate completely registered public accounting firms located
in a foreign jurisdiction because of a position taken by one or more authorities in that jurisdiction. The proposed rule would also establish
the manner of the PCAOB's determinations; the factors the PCAOB will evaluate and the documents and information it will consider
when assessing whether a determination is warranted; the form, public availability, effective date, and duration of such determinations;
and the process by which the board of the PCAOB can modify or vacate its determinations. The proposed rule was adopted by the PCAOB on
September 22, 2021 and approved by the SEC on November 5, 2021.

 Furthermore, on
June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act ("AHFCAA"), which, if enacted,
would amend the HFCAA and require the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges if its auditor
is not subject to PCAOB inspections for two consecutive years instead of three, thus reducing the time period for triggering the prohibition
on trading. On December 29, 2022, the Consolidated Appropriations Act, 2023 (the "CAA"), which AHFCAA constituted a part,
was signed into law, which officially reduced the number of consecutive non-inspection years required for triggering the prohibitions
under the HFCAA from three years to two, thus, reducing the time before an applicable issuer's securities may be prohibited from
trading or delisted.

 While the HFCAA
is not currently applicable to the Company because the Company's current auditors are subject to PCAOB review, if this changes in
the future for any reason, the Company may be subject to the HFCAA. The implications of this regulation if the Company were to become
subject to it are uncertain. Such uncertainty could cause the market price of our common stock to be materially and adversely affected,
and our securities could be delisted or prohibited from being traded on Nasdaq earlier than would be required by the HFCAA.
If our common stock is unable to be listed on another securities exchange by then, such a delisting would substantially impair your ability
to sell or purchase the common stock when you wish to do so, and the risk and uncertainty associated with a potential delisting would
have a negative impact on the price of the common stock.

 Principal Executive
Offices

 Our principal executive
office is located in the Jinhua New Energy Vehicle Town in Jinhua, Zhejiang Province, PRC, 321016, and our telephone number is (86-579)
82239856.

 Enforceability
of civil liabilities against foreign persons

 We have our principal
executive office and substantially all of our operations in PRC. A majority of our directors and officers are nationals and/or residents
of countries other than the United States. As a result, it may be difficult for our shareholders to effect service of process upon us
or those persons inside PRC. The shareholders may have to rely on international treaties such as Hague Service Convention for service.
In addition, PRC does not have treaties providing for the reciprocal recognition and enforcement of judgments of courts with the United
States and many other countries and regions. Therefore, direct recognition and enforcement in PRC of judgments of a court in any such
non-PRC jurisdictions in relation to any matter not subject to a binding arbitration provision may be difficult, time-consuming, costly
or even impossible.

 Item 1A. Risk
Factors.

 You should carefully
consider the risks described below together with all of the other information included in this report before making an investment decision
with regard to our securities. The statements contained in or incorporated into this Annual Report that are not historic facts are forward-looking
statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or
implied by forward-looking statements. If any of the following risks actually occurs, our business, financial condition or results of
operations could be harmed. In that case, the trading price of our common stock could decline, and you may lose all or part of your investment.

 Risk Factor Summary

 The
following are some material risks, any of which could have an adverse effect on our business financial condition, operating results,
or prospects.

 Risks Relating to Our Business

 Our future growth is dependent upon market's willingness to adopt our products and performance
 of our products in line with customers' expectation;

 Developments in alternative technologies or improvements in the internal combustion engine may
 materially adversely affect the demand for our products;

 Our business depends substantially on the continuing efforts of our executive officers, and our
 business may be severely disrupted if we lose their services;

 Our U.S. and PRC operating entities may be subject to product liability claims or recalls which
 could be expensive, damage our reputation or result in a diversion of management resources;

 We and our PRC operating entities retain certain personal information about our customers and
 may be subject to various privacy and consumer protection laws;

 If we are unable to protect our intellectual property rights from unauthorized use or infringement
 by third parties, defending and claiming our rights may be time-consuming and could cause us to incur substantial costs, our operating
 entities' business may be adversely affected;

 Our PRC operating entities' products make use of lithium-ion battery cells, which may catch
 fire or vent smoke and flame. This may lead to additional concerns about batteries used in automotive applications;

 Compliance with environmental regulations can be expensive, and noncompliance with these regulations
 may result in adverse publicity and potentially significant monetary damages and fines;

 Our high concentration of sales to relatively few customers and supplies from relatively few suppliers
 may result in significant impact on our liquidity, business, results of operations and financial condition;

 Our facilities or operations could be damaged or adversely affected as a result unpredictable
 events;

 If we fail to maintain an effective system of internal controls, we may not be able to accurately
 report our financial results or prevent fraud. As a result, current and potential shareholders could lose confidence in our financial
 reporting, which would harm our business and the trading price of our stock;

 Risks
 Related to Doing Business in China

 Substantial
 uncertainties and restrictions on the political and economic policies of the PRC government, PRC laws and regulations which can change
 quickly with little advance notice, and Chinese government's tendency to intervene or influence the Company's operations
 at any time, or may exert more control over offerings conducted overseas and/or foreign investment in China-based issuers could have
 a significant impact upon the business that we may be able to conduct in the PRC and accordingly on the results of our operations
 and financial condition; may restrict the level of legal protections to foreign investors and could significantly limit or completely
 hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly
 decline or be worthless. For more detailed description, please refer to the discussion on P22 under such title;

 Adverse
 regulatory developments in China may subject us to additional regulatory review, and additional disclosure requirements and regulatory
 scrutiny to be adopted by the SEC in response to risks related to recent regulatory developments in China may impose additional compliance
 requirements for companies like us with China-based operations, all of which could increase our compliance costs, subject us to additional
 disclosure requirements;

 Compliance
 with China's new Data Security Law, Measures on Cybersecurity Review, Personal Information Protection Law (second draft for
 consultation), regulations and guidelines relating to the multi-level protection scheme and any other future laws and regulations
 may entail significant expenses and could materially affect our business; The approval of the China Securities Regulatory Commission
 ("CSRC") may be required in connection with future offering under a PRC regulation adopted in August 2006, and, if required,
 we cannot assure you that we will be able to obtain such approval;

 It
 may be difficult for U.S. regulators, such as the Department of Justice, the SEC, and other authorities, to conduct investigation
 or collect evidence within China;

 The
 economy of China had experienced unprecedented growth. This growth has slowed in the recent years, and if the growth of the economy
 continues to slow or if the economy contracts, our financial condition may be materially and adversely affected;

 Changes
 in currency conversion policies in China and fluctuation in exchange rates may have a material adverse effect on our business and
 the value of our securities;

 Investors
 may experience difficulties in effecting service of legal process, enforcing judgements or bringing original actions based on United
 States or foreign laws against us or our management;

 Changes
 to the government's subsidy support policies and further delays in subsidy payments may have negative impacts on our operations;

 Risks Associated With the
 Export of Kandi Electric Vehicles to and sale in the United States

 Failures
 in our U.S. business may present a risk of significant losses to our business;

 The
 United States has strict environmental laws and regulations which may cause us to expend significant sums to comply with such laws
 and regulations;

 Our
 short-term financial performance may suffer due to our investment in expanding our presence and sales in the United States;

 Lack
 of authorized dealers and absence of after-sales maintenance may adversely affect our business in the United States;

 Risks Relating to Ownership
 of Our Securities

 Our
 stock price may be volatile, which may result in losses for our shareholders;

 We
 do not anticipate paying cash dividends to our common shareholders;

 Limited
 monetary liability against our directors, officers and employees under Delaware Law and the existence of statutory indemnification
 rights of our directors, officers and employees may result in substantial expenditures by our company and may discourage lawsuits
 against our directors, officers and employees;

 We
 may require additional capital, and the sale of additional shares or other equity securities could result in additional dilution
 to our shareholders;

 Our
 business is subject to changing regulations related to corporate governance and public disclosure that may increase both our costs
 and the risk of noncompliance;

 Techniques
 employed by manipulative short sellers in Chinese small cap stocks may drive down the market price of our common stock.

 Risks Relating to the Reincorporation

 Your rights as a shareholder of Kandi will change as a result of the Reincorporation and you may
 not be afforded as many rights as a shareholder of Kandi BVI under applicable laws and the Kandi BVI memorandum and articles of association
 as you were as a shareholder of Kandi under applicable laws and the Kandi certificate of incorporation and bylaws.

 BVI companies may not be able to initiate shareholder derivative actions, thereby depriving shareholders
 of the ability to protect their interests.

 Kandi BVI's Amended and Restated Articles of Association provide for the exclusive jurisdiction
 of the Courts of the British Virgin Islands for substantially all disputes between Kandi BVI and its shareholders, which could limit
 the shareholders' ability to obtain a favorable judicial forum for disputes with Kandi BVI or its directors, officers, other
 employees or shareholders.

 As a foreign private issuer, Kandi BVI is permitted to, and Kandi BVI may in the future choose
 to follow certain corporate governance practices in accordance with British Virgin Island law in lieu of certain NASDAQ requirements
 applicable to U.S. issuers. As a result, Kandi BVI's members may not have the protections afforded by these corporate
 governance requirements, which may make its ordinary shares less attractive to investors or otherwise harm the trading price or value
 of its ordinary shares.

 The expected benefits of the Reincorporation may not be realized.

 As a foreign private issuer, Kandi BVI will not be required to provide its shareholders with the
 same information as Kandi would if Kandi remained a U.S. public issuer and, as a result, you may not receive as much information
 about Kandi BVI as you did about Kandi and you may not be afforded the same level of protection as a shareholder of Kandi BVI under
 applicable laws and the Kandi BVI memorandum and articles of association as you were as a shareholder of Kandi under applicable laws
 and the Kandi certificate of incorporation and bylaws.

 Risks
Relating to Our Business

 Our
future growth is dependent upon consumers' willingness to adopt our products.

 Our
PRC operating entities' growth is highly dependent upon the adoption by consumers of, and they are subject to a risk of any reduced
demand for, alternative fuel vehicles in general and EVs and pure electric off-road vehicles in particular. The market for alternative
fuel vehicles and pure electric off-road vehicles is relatively new and rapidly evolving, characterized by rapidly changing technologies,
price competition, additional competitors, evolving government regulation and industry standards, frequent new vehicle announcements
and changing consumer demands and behaviors. If the market for EVs and pure electric off-road vehicles in China does not develop as we
expect or develops more slowly than we expect, our business, prospects, financial condition and operating results will be harmed.

 Developments
in alternative technologies or improvements in the internal combustion engine may materially adversely affect the demand for our products.

 Significant
developments in alternative technologies, such as advanced diesel, ethanol, fuel cells or compressed natural gas, or improvements in
the fuel economy of the internal combustion engine, may materially and adversely affect our business and prospects in ways we do not
currently anticipate. Any failure by us to develop new or enhanced technologies or processes, or to react to changes in existing technologies,
could materially delay our development and introduction of new and enhanced EV products and Pure Electric off-road vehicles, which could
result in the loss of competitiveness of our vehicles, decreased revenue and a loss of market share to competitors, which would materially
and adversely affect our business, prospects, operating results and financial condition.

 If our U.S. and PRC operating entities are unable to keep up with advances
in electric vehicle and pure electric off-road vehicle technology, we may suffer a decline in our competitive position. Our research and
development efforts may not be sufficient to adapt to changes in EV and pure electric off-road vehicle technology. As technologies change,
our PRC operating entities plan to upgrade or adapt the vehicles and introduce new models in order to continue to provide vehicles with
the latest technology, in particular battery cell technology. However, our PRC operating entities' vehicles may not compete effectively
with alternative vehicles and pure electric off-road vehicles if they are not able to source and integrate the latest technology into
their vehicles. For example, our PRC operating entities do not manufacture battery cells, which makes them dependent upon other suppliers
of battery cell technology for our battery packs.

 Our
business depends substantially on the continuing efforts of our executive officers, and our business may be severely disrupted if we
lose their services.

 Our
future success depends substantially on the continued services of our executive officers, especially our CEO, Dr. Dong Xueqin and Chairman
of the Board, Mr. Hu Xiaoming. We do not maintain key man life insurance on any of our executive officers. If any of our executive officers
are unable or unwilling to continue in their present positions, we may not be able to replace them readily, if at all. Therefore, our
business may be severely disrupted, and we may incur additional expenses to recruit and retain new officers. In addition, if any of our
executive officers joins a competitor or forms a competing company, we may lose some of our customers.

 Our U.S. and PRC operating entities may
be subject to product liability claims or recalls which could be expensive, damage our reputation or result in a diversion of management
resources.

 Our
PRC and U.S. operating entities may be subject to lawsuits resulting from injuries or damages associated with the use of the vehicles
that they sell or produce. We may incur losses relating to these claims or the defense of these claims. While our PRC and U.S. operating
entities do maintain product liability insurance, there is a risk that claims or liabilities will exceed our insurance coverage. In addition,
we cannot assure the insurance our PRC and U.S. operating entities currently maintain will continue to be available on commercially reasonable
terms, therefore, we may be unable to retain adequate liability insurance in the future.

 Our
operating entities in PRC or in U.S. may also be involved in recalls of our vehicles. The vehicles we manufactured may prove to be defective,
or our operating entities may voluntarily initiate a recall or make payments related to such claims as a result of various industry or
business practices or the need to maintain good customer relationships. Such a recall would result in a diversion of resources, extra
expenditure of the funds, or damage to our reputation. Any product liability claim brought against us could have a material adverse effect
on the results of our operations.

 We
and our PRC operating entities retain certain personal information about our customers and may be subject to various privacy and consumer
protection laws.

 We
and our PRC operating entities use the electronic systems of our vehicles to log information about each vehicle's condition, performance
and use in order to aid us in providing customer service, including vehicle diagnostics, repair and maintenance. Electronic systems are
also used to help us collect data regarding our customers' charging time, battery usage, mileage and efficiency habits to improve
our vehicles. We also collect information about our customers through our website, at our stores and facilities, and via telephone.

 Our
customers may object to the processing of this data, which may negatively impact our ability to provide effective customer service and
develop new vehicles and products. Collection and use of our customers' personal information in conducting our business may be
subject to national and local laws and regulations in China, and such laws and regulations may restrict our processing of such personal
information and hinder our ability to attract new customers or market to existing customers. We may incur significant expenses to comply
with privacy, consumer protection and security standards and protocols imposed by law, regulation, industry standards or contractual
obligations. Although we take steps to protect the security of our customers' personal information, we may be required to expend
significant resources to comply with data breach requirements if third parties improperly obtain and use the personal information of
our customers or we otherwise experience a data loss with respect to customers' personal information. A major breach of our network
security and systems could have serious negative consequences for our businesses and future prospects, including possible fines, penalties
and damages, reduced customer demand for our vehicles, and harm to our reputation and brand.

 Our
PRC operating entities' business will be adversely affected if we are unable to protect our intellectual property rights from unauthorized
use or infringement by third parties.

 Any
failure to adequately protect our proprietary rights could result in the weakening or loss of such rights, which may allow our competitors
to offer similar or identical products or use identical or confusingly similar branding, potentially resulting in the loss of some of
our competitive advantage, a decrease in our revenue or an attribution of potentially lower quality products to us, which would adversely
affect our business, prospects, financial condition and operating results. Our success depends, at least in part, on our ability to protect
our core technology and intellectual property. To accomplish this, we rely on a combination of patents, patent applications, trade secrets
(including know-how), employee and third-party nondisclosure agreements, copyright protection, trademarks, intellectual property licenses
and other contractual rights to establish and protect our proprietary rights in our technology. We have also received from third parties
patent licenses related to manufacturing our vehicles.

 The
protection provided by the patent laws is and will be important to our future opportunities. However, such patents and agreements and
various other measures we take to protect our intellectual property from use by others may not be effective for various reasons, including
the following:

 our pending patent applications
 may not result in the issuance of patents;

 our patents, if issued,
 may not be broad enough to protect our commercial endeavors;

 the patents we have been
 granted may be challenged, invalidated or circumvented because of the pre-existence of similar patented or unpatented technology
 or for other reasons;

 the costs associated with
 obtaining and enforcing patents, confidentiality and invention agreements or other intellectual property rights may make aggressive
 enforcement impracticable; or

 current and future competitors
 may independently develop similar technology, duplicate our vehicles or design new vehicles in a way that circumvents our intellectual
 property.

 Existing
trademark and trade secret laws and confidentiality agreements only afford limited protections. In addition, the laws of some countries,
such as PRC, do not protect our proprietary rights to the same extent as do the laws of the United States, which can lead to more unauthorized
use of our intellectual property.

 We
may need to defend ourselves against patent or trademark infringement claims, which may be time-consuming and could cause us to incur
substantial costs.

 Companies,
organizations or individuals, including our competitors, may hold or obtain patents, trademarks or other proprietary rights that would
prevent, limit or interfere with our ability to make, use, develop, sell or market our vehicles or components, which could make it more
difficult for us to operate our business. From time to time, we may receive inquiries from holders of patents or trademarks regarding
their proprietary rights. Companies holding patents or other intellectual property rights may bring suits alleging infringement of such
rights or otherwise assert their rights and seek licenses. In addition, if we are determined to have infringed upon a third party's
intellectual property rights, we may be required to do one or more of the following:

 cease selling, incorporating
 or using vehicles or offering goods or services that incorporate or use the challenged intellectual property;

 pay substantial damages;

 obtain a license from the
 holder of the infringed intellectual property right, which license may not be available on reasonable terms or at all; or

 redesign our vehicles or
 other goods or services.

 In
the event of a successful claim of infringement against us and our failure or inability to obtain a license to the infringed technology
or other intellectual property right, our business, prospects, operating results and financial condition could be materially adversely
affected. In addition, any litigation or claims, whether or not valid, could result in substantial costs and diversion of resources and
management attention.

 We
may also face claims that our use of technology licensed or otherwise obtained from a third party infringes the rights of others, under
such case we may not be allowed to continue using such technology and selling our inventories containing such technology. In such cases,
we may seek indemnification from our licensors/suppliers under our contracts with them. However, indemnification may be unavailable or
insufficient to cover our costs and losses, depending on our use of the technology, whether we choose to retain control over conduct
of the litigation, and other factors. In addition, we may have to find substitute to keep using similar technology to our products, which
may be time-consuming and costly, if not impossible, upon such period our sales or manufacture of certain products may be negatively
influenced.

 Our
PRC operating entities' vehicles make use of lithium-ion battery cells, which have the potential to catch fire or vent smoke and
flame. This may lead to additional concerns about batteries used in automotive applications.

 The
battery packs in our EV products and pure electric off-road vehicles make use of lithium-ion cells. Our PRC operating entities also currently
intend to make use of lithium-ion cells in battery packs on any future vehicles we may produce. On rare occasions, lithium-ion cells
can rapidly release the energy they contain by venting smoke and flames in a manner that can ignite nearby materials as well as other
lithium-ion cells. Extremely rare incidents of laptop computers, cell phones and EV battery packs catching fire have focused consumer
attention on the safety of these cells.

 These
events have raised concerns about batteries used in EV products and pure electric off-road vehicles applications. To address these questions
and concerns, a number of battery cell manufacturers are pursuing alternative lithium-ion battery cell chemistries to improve safety.
Our PRC operating entities may have to recall their vehicles or participate in a recall of a vehicle that contains their battery packs,
or redesign their battery packs, which would be time consuming and expensive. Also, negative public perceptions regarding the suitability
of lithium-ion cells for automotive applications or any future incident involving lithium-ion cells such as a vehicle or other fire,
even if such incident does not involve us, could seriously harm our business.

 In
addition, our PRC operating entities store a significant number of lithium-ion cells at our manufacturing facility. Any mishandling of
battery cells may cause disruption to the operation of our facilities. While our PRC operating entities have implemented safety procedures
related to the handling of the cells, there can be no assurance that a safety issue or fire related to the cells would not disrupt our
operations. Such damage or injury would likely lead to adverse publicity and potentially a safety recall. Moreover, any failure of a
competitor's EVs and pure electric off-road vehicles, may cause indirect adverse publicity for us and our EV products. Such adverse
publicity would negatively affect our brand and harm our business, prospects, financial condition and operating results.

 Compliance
with environmental regulations can be expensive, and noncompliance with these regulations may result in adverse publicity and potentially
significant monetary damages and fines.

 The
business operations of our PRC operating entities generate noise, waste water, gaseous byproduct and other industrial waste. Our PRC
operating entities are required to comply with all national and local regulations regarding the protection of the environment. Our PRC
operating entities are in compliance with current environmental protection requirements and have all necessary environmental permits
to conduct our business. However, if more stringent regulations are adopted in the future, the costs of compliance with these new regulations
could be substantial. Additionally, if our PRC operating entities fail to comply with present or future environmental regulations, they
may be required to pay substantial fines, suspend production or cease operations. Any failure by our PRC operating entities to control
the use of, or to adequately restrict the unauthorized discharge of, hazardous substances could subject us to potentially significant
monetary damages and fines or suspensions to our business operations. Certain laws, ordinances and regulations could limit our ability
to develop, use, or sell our products.

 Our
high concentration of sales to relatively few customers may result in significant impact on our liquidity, business, results of operations
and financial condition.

 As
of December 31, 2023 and 2022, our operating subsidiaries' major customers (above 10% of the total revenue), in the aggregate,
accounted for 55% and 26%, respectively, of their sales. Due to the concentration of sales
to relatively few customers, loss of one or more of these customers will have relatively high impact on their operational results.

 Our
business is subject to the risk of supplier concentrations.

 Our
PRC operating entities depend on a limited number of suppliers for the sourcing of major components and parts and principal raw materials.
For the years ended December 31, 2023 and 2022, the major suppliers (above 10% of the total purchases) of our operating subsidiaries
accounted for 20% and 22% of their purchases, respectively. As a result of this concentration
in our supply chain, our operating subsidiaries' business and operations would be negatively affected if any of their key suppliers
were to experience significant disruption affecting the price, quality, availability or timely delivery of their products. The partial
or complete loss of these suppliers, or a significant adverse change in our relationship with any of these suppliers, could result in
lost revenue, added costs and distribution delays that could harm our business and customer relationships. Disputes with significant
suppliers, logistics service providers or independent distributors, including disputes regarding pricing or performance, may also adversely
affect our ability to manufacture and/or sell our products, as well as our business or financial results. In addition, concentration
in our supply chain can exacerbate our exposure to risks associated with the termination by key suppliers of our distribution agreements
or any adverse change in the terms of such agreements, which could have a negative impact on our revenues and profitability.

 Our
facilities or operations could be damaged or adversely affected as a result of disasters, epidemics or other unpredictable events.

 The
Company's headquarters and facilities are located in several cities in China such as Jinhua, Yongkang and Haikou. If major disasters
such as earthquakes, fires, floods, hurricanes, wars, terrorist attacks, computer viruses, pandemics or other events occur, or our information
system or communications network breaks down or operates improperly, our headquarters and production facilities may be seriously damaged,
or we may have to stop or delay production and shipment of our products. Any outbreak of contagious diseases, and other adverse public
health developments, particularly in China, and failure to take adequate steps to mitigate the likelihood or potential impact of such
events, or to effectively manage such events if they occur, may adversely affect our business or financial results. These could include
port closures and other restrictions resulting from the outbreak; constrained global supply, which may cause the negative impact on our
sale of off-road vehicles to the U.S.; disruptions or restrictions on our ability to travel or to distribute our products, as well as
temporary closures of our facilities or the facilities of our suppliers, manufacturers or customers. Any disruption or delay of our operation
and those of our suppliers, manufacturers or customers would adversely impact our sales and operating results. In addition, a significant
outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies
and financial markets of China and many other countries, resulting in an economic downturn that could affect demand for our products
and we may incur expenses relating to such damages, which could have a material adverse impact on our business, operating results and
financial condition.

 Our
EVs and pure electric off-road vehicles may not perform in line with customer expectations.

 Our
EVs and pure electric off-road vehicles may not perform in line with customers' expectations. For example, our vehicles may not
have the durability or longevity of other vehicles in the market, and may not be as easy and convenient to repair as other vehicles in
the market. Any product defects or any other failure of our vehicles to perform as expected could harm our reputation and result in adverse
publicity, lost revenue, delivery delays, product recalls, product liability claims, harm to our brand and reputation, and significant
warranty and other expenses, and could have a material adverse impact on our business, financial condition, operating results and prospects.

 In
addition, the range of our vehicles on a single charge declines principally as a function of usage, time and charging patterns as well
as other factors. For example, a customer's use of his or her EVs and pure electric off-road vehicles as well as the frequency
with which he or she charges the battery can result in additional deterioration of the battery's ability to hold a charge.

 Furthermore,
our vehicles may contain defects in design and manufacture that may cause them not to perform as expected or that may require repair.
While we have performed extensive internal testing on our vehicles' software and hardware systems, we have a limited frame of reference
by which to evaluate the long-term performance of our systems and vehicles. There can be no assurance that we will be able to detect
and fix any defects in the vehicles prior to their sale to consumers. If any of our vehicles fail to perform as expected, we may need
to delay deliveries, initiate product recalls and provide servicing or updates under warranty at our expense, which could adversely affect
our brand in our target markets and could adversely affect our business, prospects and results of operations.

 If
we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent
fraud. As a result, current and potential shareholders could lose confidence in our financial reporting, which would harm our business
and the trading price of our stock.

 Effective
internal controls are necessary for us to provide reliable financial reports and effectively prevent fraud. As directed by Section 404
of the Sarbanes-Oxley Act of 2002, or SOX 404, the SEC adopted rules requiring public companies to include a report of management on
our internal controls over financial reporting in their annual reports.

 Although
we continue to maintain and improve our internal control procedures, we cannot provide assurance that we will not fail to achieve and
maintain an effective internal control environment on an ongoing basis, which may cause investors to lose confidence in our reported
financial information and have a material adverse effect on the price of our common stock.

 Risks
Related to Doing Business in China

 Substantial
uncertainties and restrictions on the political and economic policies of the PRC government, PRC laws and regulations which can change
quickly with little advance notice, and Chinese government's tendency to intervene or influence your operations at any time, or
may exert more control over offerings conducted overseas and/or foreign investment in China-based issuers could have a significant impact
upon the business that we may be able to conduct in the PRC and accordingly on the results of our operations and financial condition;
may restrict the level of legal protections to foreign investors and could significantly limit or completely hinder our ability to offer
or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless;

 Kandi
Technologies' business operations conducted through our PRC operating entities may be adversely affected by the current and future
political environment in the PRC. Recently, the PRC government initiated a series of regulatory actions and statements to regulate business
operations in China with little advance notice, including cracking down on illegal activities in the securities market, adopting new
measures to extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement. The Chinese government
exerts substantial influence and control over the manner in which we must conduct our business activities. Our PRC operating entities'
ability to operate in China may be adversely affected by changes in Chinese laws and regulations. Under the current government leadership,
the government of the PRC has been pursuing reform policies which have adversely affected China-based operating companies whose securities
are listed in the United States, with significant policies changes being made from time to time without notice. There are substantial
uncertainties regarding the interpretation and application of PRC laws and regulations, including, but not limited to, the laws and regulations
governing our business, or the enforcement and performance of our contractual arrangements. Only after 1979 did the Chinese government
begin to promulgate a comprehensive system of laws that regulate economic affairs in general, deal with economic matters such as foreign
investment, corporate organization and governance, commerce, taxation and trade, as well as encourage foreign investment in China. Although
the influence of the law has been increasing, China has not developed a fully integrated legal system and recently enacted laws and regulations
may not sufficiently cover all aspects of economic activities in China. Also, because these laws and regulations are relatively new,
and because of the limited volume of published cases and their lack of force as precedents, interpretation and enforcement of these laws
and regulations involve significant uncertainties. New laws and regulations that affect existing and proposed future businesses may also
be applied retroactively. In addition, there have been constant changes and amendments of laws and regulations over the past 30 years
in order to keep up with the rapidly changing society and economy in China. Because government agencies and courts provide interpretations
of laws and regulations and decide contractual disputes and issues, their inexperience in adjudicating new business and new polices or
regulations in certain less developed areas causes uncertainty and may affect our operating entities' business. Consequently, we
cannot predict the future direction of Chinese legislative activities with respect to either businesses with foreign investment or the
effectiveness on enforcement of laws and regulations in China. The uncertainties, including new laws and regulations and changes of existing
laws, as well as judicial interpretation by inexperienced officials in the agencies and courts in certain areas, may cause possible problems
to foreign investors. Although the PRC government has been pursuing economic reform policies for more than two decades, the PRC government
continues to exercise significant control over economic growth in the PRC through the allocation of resources, controlling payments of
foreign currency, setting monetary policy and imposing policies that impact particular industries in different ways. We cannot assure
you that the PRC government will continue to pursue policies favoring a market oriented economy or that existing policies will not be
significantly altered, especially in the event of a change in leadership, social or political disruption, or other circumstances affecting
political, economic and social life in the PRC. The Chinese government may intervene or influence our operations at any time, or may
exert more control over offerings conducted overseas and/or foreign investment in China-based issuers, which could result in a material
change in our operations and/or the value of the securities being offered. Any adverse changes in Chinese laws and regulations and the
Chinese government's significant oversight and discretion over the conduct of our business could significantly limit or completely
hinder our ability to offer or continue to offer securities to investors and cause the value of our securities to significantly decline
or be worthless.

 Our
current corporate structure and business operations and the market price of our common stock may be affected by the newly enacted Foreign
Investment Law.

 Kandi
Technologies is a holding company incorporated in Delaware, with no material operations of its own, a substantial majority of the operations
are conducted through our wholly-owned subsidiaries established in PRC and U.S. We are classified as a foreign enterprise under PRC laws
and regulations, and our wholly foreign-owned enterprises in the PRC will be foreign-invested enterprises.

 On
March 15, 2019 and December 26, 2019, the National People's Congress, China's national legislative body (the "NPC")
approved the Foreign Investment Law, and the PRC State Council approved the Implementation Rules of the Foreign Investment Law, respectively,
both came into effect on January 1, 2020. Since they are relatively new, uncertainties exist in relation to their interpretation.
The Foreign Investment Law grants national treatment to foreign-invested entities, except for those foreign-invested entities
that operate in industries specified as either "restricted" or "prohibited" from foreign investment in the Negative
List. The Foreign Investment Law provides that foreign-invested entities operating in "restricted" or "prohibited"
industries will require market entry clearance and other approvals from relevant PRC government authorities. In accordance with the Foreign
Investment Law, the State Council promulgated and approved in 2021 a list of special administrative measures for market access of foreign
investments, or the Negative List. Pursuant to the Negative List, the development, manufacture and sale of EVs does not fall within the
"prohibited" or "restricted" category. However, since the Negative List has been adjusted and updated almost
on an annual basis in the recent years, we cannot assure you that the aforementioned business of EV manufacturing and sales will
continuously be beyond the "prohibited" category. If any of our subsidiaries is "restricted" or "prohibited"
from foreign investment under the "Negative List" effective at the time, we may be deemed to be in violation of the Foreign
Investment Law, may be required to restructure our business operations, any of which may have a material adverse effect on our business
operation and the market price of our ordinary shares.

 Adverse
regulatory developments in China may subject us to additional regulatory review, and additional disclosure requirements and regulatory
scrutiny to be adopted by the SEC in response to risks related to recent regulatory developments in China may impose additional compliance
requirements for companies like us with China-based operations, all of which could increase our compliance costs, subject us to additional
disclosure requirements.

 The
recent regulatory developments in China, in particular with respect to restrictions on China-based companies raising capital offshore,
may lead to additional regulatory review in China over our financing and capital raising activities in the United States. In addition,
we may be subject to industry-wide regulations that may be adopted by the relevant PRC authorities, which may have the effect of restricting
the scope of our operations in China, or causing the suspension or termination of our business operations in China entirely, all of which
will materially and adversely affect our business, financial condition and results of operations. We may have to adjust, modify, or completely
change our business operations in response to adverse regulatory changes or policy developments, and we cannot assure you that any remedial
action adopted by us can be completed in a timely, cost-efficient, or liability-free manner or at all.

 On
July 30, 2021, in response to the recent regulatory developments in China and actions adopted by the PRC government, the Chairman of
the SEC issued a statement asking the SEC staff to seek additional disclosures from offshore issuers associated with China-based operating
companies before their registration statements will be declared effective. On August 1, 2021, the China Securities Regulatory Commission
stated in a statement that it had taken note of the new disclosure requirements announced by the SEC regarding the listings of Chinese
companies and the recent regulatory development in China, and that both countries should strengthen communications on regulating China-related
issuers. We cannot guarantee that we will not be subject to tightened regulatory review and we could be exposed to government interference
in China.

 Compliance
with China's new Data Security Law, Measures on Cybersecurity Review, Personal Information Protection Law (second draft for consultation),
regulations and guidelines relating to the multi-level protection scheme and any other future laws and regulations may entail significant
expenses and could materially affect our business.

 China
has implemented or will implement rules and is considering a number of additional proposals relating to data protection. China's
new Data Security Law took effect in September 2021. The Data Security Law provides that the data processing activities must be conducted
based on "data classification and hierarchical protection system" for the purpose of data protection and prohibits entities
in China from transferring data stored in China to foreign law enforcement agencies or judicial authorities without prior approval by
the Chinese government.

 Additionally,
China's Cyber Security Law requires companies to take certain organizational, technical and administrative measures and other necessary
measures to ensure the security of their networks and data stored on their networks. Specifically, the Cyber Security Law provides that
China adopt a multi-level protection scheme (MLPS), under which network operators are required to perform obligations of security protection
to ensure that the network is free from interference, disruption or unauthorized access, and prevent network data from being disclosed,
stolen or tampered. Under the MLPS, entities operating information systems must have a thorough assessment of the risks and the conditions
of their information and network systems to determine the level to which the entity's information and network systems belong-from
the lowest Level 1 to the highest Level 5 pursuant to a series of national standards on the grading and implementation of the classified
protection of cyber security. The grading result will determine the set of security protection obligations that entities must comply
with. Entities classified as Level 2 or above should report the grade to the relevant government authority for examination and approval.

 Recently,
the Cyberspace Administration of China has taken action against several Chinese internet companies in connection with their initial public
offerings on U.S. securities exchanges, for alleged national security risks and improper collection and use of the personal information
of Chinese data subjects. According to the official announcement, the action was initiated based on the National Security Law, the Cyber
Security Law and the Measures on Cybersecurity Review, which are aimed at "preventing national data security risks, maintaining
national security and safeguarding public interests." On July 10, 2021, the Cyberspace Administration of China published a revised
draft of the Measures on Cybersecurity Review, expanding the cybersecurity review to data processing operators in possession of personal
information of over 1 million users if the operators intend to list their securities in a foreign country.

 It
is unclear at the present time how widespread the cybersecurity review requirement and the enforcement action will be and what effect
they will have on our business. China's regulators may impose penalties for non-compliance ranging from fines or suspension of
operations, and this could lead to us delisting from the U.S. stock market.

 Also,
on August 20, 2021, the National People's Congress passed the Personal Information Protection Law, which has been implemented on
November 1, 2021. The law creates a comprehensive set of data privacy and protection requirements that apply to the processing of personal
information and expands data protection compliance obligations to cover the processing of personal information of persons by organizations
and individuals in China, and the processing of personal information of persons in China outside of China if such processing is for purposes
of providing products and services to, or analyzing and evaluating the behavior of, persons in China. The law also proposes that critical
information infrastructure operators and personal information processing entities who process personal information meeting a volume threshold
to-be-set by Chinese cyberspace regulators are also required to store in China personal information generated or collected in China,
and to pass a security assessment administered by Chinese cyberspace regulators for any export of such personal information. Lastly,
the draft contains proposals for significant fines for serious violations of up to RMB 50 million or 5% of annual revenues from the prior
year.

 Interpretation,
application and enforcement of these laws, rules and regulations evolve from time to time and their scope may continually change, through
new legislation, amendments to existing legislation and changes in enforcement. Compliance with the Cyber Security Law and the Data Security
Law could significantly increase the cost to us of providing our service offerings, require significant changes to our operations or
even prevent us from providing certain service offerings in jurisdictions in which we currently operate or in which we may operate in
the future. Despite our efforts to comply with applicable laws, regulations and other obligations relating to privacy, data protection
and information security, it is possible that our practices, offerings or platform could fail to meet all of the requirements imposed
on us by the Cyber Security Law, the Data Security Law and/or related implementing regulations. Any failure on our part to comply with
such law or regulations or any other obligations relating to privacy, data protection or information security, or any compromise of security
that results in unauthorized access, use or release of personally identifiable information or other data, or the perception or allegation
that any of the foregoing types of failure or compromise has occurred, could damage our reputation, discourage new and existing counterparties
from contracting with us or result in investigations, fines, suspension or other penalties by Chinese government authorities and private
claims or litigation, any of which could materially adversely affect our business, financial condition and results of operations. Even
if our practices are not subject to legal challenge, the perception of privacy concerns, whether or not valid, may harm our reputation
and brand and adversely affect our business, financial condition and results of operations. Moreover, the legal uncertainty created by
the Data Security Law and the recent Chinese government actions could materially adversely affect our ability, on favorable terms, to
raise capital, including engaging in follow-on offerings of our securities in the U.S. market.

 Recent
greater oversight by the CAC over data security, particularly for companies seeking to list on a foreign exchange, could adversely impact
our business and our offering.

 On
December 28, 2021, the CAC and other relevant PRC governmental authorities jointly promulgated the Measures for Cybersecurity Review
(the "Measures"), which took effect on February 15, 2022. The Measures provide that net platform operators engaging in data
processing activities that affect or may affect national security must be subject to cybersecurity review by the Cybersecurity Review
Office of the PRC. According to the Cybersecurity Review Measures, a cybersecurity review assesses potential national security risks
that may be brought about by any procurement, data processing, or overseas listing. The Measures require that an online platform operator
which possesses the personal information of at least one million users must apply for a cybersecurity review by the CAC if it intends
to be listed in foreign countries.

 On
November 14, 2021, the CAC published the Regulations on Network Data Security (draft for public comments) (the "Draft Regulation"),
which provides that data processing operators engaging in data processing activities that affect or may affect national security must
be subject to network data security review by the relevant Cyberspace Administration of the PRC. According to the Draft Regulation, data
processing operators who possess personal data of at least one million users or collect data that affects or may affect national security
must be subject to network data security review by the relevant Cyberspace Administration of the PRC. The deadline for public comments
on the Draft Regulation was December 13, 2021.

 The
management believes that as of the date of this report: (i) the Company does not hold personal information of over one million users;
(ii) the Company and its subsidiaries have not been informed by any PRC governmental authority of any requirement that it file for a
cybersecurity review; and (iii) the Company and its subsidiaries have never disclosed any customer or supplier information within China
(except when requested by related parties, the company and its subsidiaries tailor their customer or supplier information disclosures
to the narrowest possible scope), therefore, the Company believes it is not required to pass cybersecurity review of CAC. Further, as
of the date of this report, Kandi Technologies and its subsidiaries 1) did not collect any data that will or may negatively influence
PRC's national security; and 2) strictly follow the relevant PRC laws and regulations. There remains uncertainty, however, as to
how the Measures and the Draft Regulation will be interpreted or implemented and whether the PRC regulatory agencies, including the CAC,
may adopt new laws, regulations, rules, or detailed implementation and interpretation related to the Measures and the Draft Regulation.
If any such new laws, regulations, rules, or implementation and interpretation come into effect, we will take all reasonable measures
and actions to comply and to minimize the adverse effect of such laws on us. We cannot guarantee, however, that we will not be subject
to cybersecurity review and network data security review in the future. During such reviews, we may be required to suspend our operation
or experience other disruptions to our operations. Cybersecurity review and network data security review could also result in negative
publicity with respect to our Company and diversion of our managerial and financial resources, which could materially and adversely affect
our business, financial conditions, and results of operations.

 The
approval of the China Securities Regulatory Commission ("CSRC") is required in connection with future offerings under the
Trial Measures, and, we cannot assure you that we can obtain such approval on time.

 The
Regulations on Mergers and Acquisitions of Domestic Companies by Foreign Investors, or the M&A Rules, adopted by six PRC regulatory
agencies in 2006 and amended in 2009, require an overseas special purpose vehicle formed for listing purposes through acquisitions of
PRC domestic companies and controlled by PRC companies or individuals to obtain the approval of the CSRC prior to the listing and trading
of such special purpose vehicle's securities on an overseas stock exchange. In September 2006, the CSRC published a notice on its
official website specifying documents and materials required to be submitted to it by a special purpose vehicle seeking CSRC approval
of its overseas listings. However, substantial uncertainty remains regarding the scope and applicability of the M&A Rules to offshore
special purpose vehicles. Currently, there is no consensus among leading PRC law firms regarding the scope and applicability of the CSRC
approval requirement.

 Based
on our understanding of the Chinese laws and regulations in effect at the time of this report, we will not be required to submit an application
to the CSRC for its approval of an offering in a foreseeable future and the listing and trading of our common stock on Nasdaq. However,
there remains some uncertainty as to how the M&A Rules will be interpreted or implemented in the context of an overseas offering
and our belief is subject to any new laws, rules and regulations or detailed implementations and interpretations in any form relating
to the M&A Rules or overseas offering approval. We cannot assure you that relevant PRC governmental agencies, including the CSRC,
would reach the same conclusion as we do.

 Recently,
the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued
the "Opinions on Severely Cracking Down on Illegal Securities Activities According to Law," or the Opinions, which was made
available to the public on July 6, 2021. The Opinions emphasized the need to strengthen the administration over illegal securities activities,
and the need to strengthen the supervision over overseas listings by Chinese companies. Effective measures, such as promoting the construction
of relevant regulatory systems will be taken to deal with the risks and incidents of China-concept overseas listed companies, and cybersecurity
and data privacy protection requirements and similar matters. On July 10, 2021, the Cyberspace Administration of China issued a revised
draft of the Measures for Cybersecurity Review for public comments, which required that, among others, in addition to "operator
of critical information infrastructure", any "data processor" controlling personal information of no less than one
million users which seeks to list in a foreign stock exchange should also be subject to cybersecurity review, and further elaborated
the factors to be considered when assessing the national security risks of the relevant activities. We do not believe we are among the
"operator of critical information infrastructure" or "data processor" as mentioned above. Based on the above
and our understanding of the Chinese laws and regulations currently in effect as of the date of this report, we will not be required
to submit an application to the CSRC or the CAC for the approval of a future offering and the listing and trading of our securities on
the Nasdaq. However, the revised draft of the Measures for Cybersecurity Review is in the process of being formulated and the Opinions
remain unclear on how it will be interpreted, amended and implemented by the relevant PRC governmental authorities. Thus, it is still
uncertain how PRC governmental authorities will regulate overseas listing in general and whether we are required to obtain any specific
regulatory approvals. Furthermore, if the CSRC or other regulatory agencies later promulgate new rules or explanations requiring that
we obtain their approvals for future offering and any follow-on offering, we may be unable to obtain such approvals which could significantly
limit or completely hinder our ability to offer or continue to offer securities to our investors. For instance, in the event that the
CSRC approval or any regulatory approval is required for a future offering, or if the CSRC or any other PRC government authorities promulgates
any new laws, rules or regulations or any interpretation or implements rules before our listing that would require us to obtain the CSRC
or any other governmental approval for a future offering, we may face sanctions by the CSRC or other PRC regulatory agencies if we fail
to seek CSRC approval for such future offering. These sanctions may include fines and penalties on our operations in the PRC, limitations
on our operating privileges in the PRC, delays in or restrictions on the repatriation of the proceeds from a future offering into the
PRC, restrictions on or prohibition of the payments or remittance of dividends by our PRC subsidiary, or other actions that could have
a material and adverse effect on our business, financial condition, results of operations, reputation and prospects, as well as the trading
price of our common stock. The CSRC or other PRC regulatory agencies may also take actions requiring us, or making it advisable for us,
to halt a future offering before the settlement and delivery of the securities that we offer. Consequently, if you engage in market trading
or other activities in anticipation of and prior to the settlement and delivery of the securities we offer, you would be doing so at
the risk that the settlement and delivery may not occur. Any uncertainties or negative publicity regarding such approval requirements
could have a material adverse effect on our ability to complete any follow-on offering of our securities or the market for and market
price of our common stock.

 On
December 24, 2021, the China Securities Regulatory Commission, or the "CSRC", published draft regulations (the "Draft
Rules") on domestic enterprises issuing securities and being listed overseas. The Draft Rules lay out specific filing requirements
for overseas listing and offering by PRC domestic companies and include unified regulation management and strengthening regulatory coordination.
On February 17, 2023, the CSRC promulgated the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic
Companies (the "Trial Measures"), which took effect on March 31, 2023. The Trial Measures supersede the Draft Rules and clarified
and emphasized several aspects, which include but are not limited to: (1) criteria to determine whether an issuer will be required to
go through the filing procedures under the Trial Measures; (2) exemptions from immediate filing requirements for issuers including those
that have already been listed or registered but not yet listed in foreign securities markets, including U.S. markets, prior to the effective
date of the Trial Measures; (3) a negative list of types of issuers banned from listing or offering overseas, such as issuers whose affiliates
have been recently convicted of bribery and corruption; (4) issuers' compliance with web security, data security, and other national
security laws and regulations; (5) issuers' filing and reporting obligations, such as obligation to file with the CSRC after it
submits an application for initial public offering to overseas regulators, and obligation after offering or listing overseas to report
to the CSRC material events including change of control or voluntary or forced delisting of the issuer; and (6) the CSRC's authority
to fine both issuers and their shareholders for failure to comply with the Trial Measures, including failure to comply with filing obligations
or committing fraud and misrepresentation. Because we are already publicly listed in the U.S., the Trial Measures do not impose additional
regulatory burden on us beyond the obligation to report to the CSRC any future offerings of our securities, or material events such as
a change of control or delisting. As the Trial Measures are newly issued, there remains uncertainty as to how it will be interpreted
or implemented. Therefore, there is uncertainty that if we are subject to such filing requirements under the Trial Measures, we will
be able to get clearance from the CSRC in a timely fashion.

 It
may be difficult for U.S. regulators, such as the Department of Justice, the SEC, and other authorities, to conduct investigation or
collect evidence within China.

 Shareholder
claims or regulatory investigation that are common in the United States generally are difficult to pursue as a matter of law or practicality
in China. For example, in China, there are significant legal and other obstacles to providing information needed for regulatory investigations
or litigations initiated outside China. Although the authorities in China may establish a regulatory cooperation mechanism with the securities
regulatory authorities of another country or region to implement cross-border supervision and administration, such cooperation with regulatory
authorities in the Unities States-including the SEC and the Department of Justice-may not be efficient in the absence of mutual and practical
cooperation mechanism. Furthermore, according to Article 177 of the PRC Securities Law, which became effective in March 2020, no overseas
securities regulator is allowed to directly conduct investigation or evidence collection activities within the PRC territory. Currently
the management of the Company understand that the Article 177 does not apply to the Company and will not negatively influence the authorities,
such as the SEC, or the Department of Justice, to conduct investigation or collect evidence towards us. However, since the PRC Securities
Law is relatively new and detailed interpretation of or implementation rules under Article 177 have been limited, we cannot assure you
that the PRC legislative authority will have the same understanding as us and the inability for an overseas securities regulator to directly
conduct investigation or evidence collection activities within China may further increase the difficulties you face in protecting your
interests.

 The
Holding Foreign Companies Accountable Act, or the HFCAA, and the related regulations continue to evolve. Further implementations and
interpretations of or amendments to the HFCAA or the related regulations, or a PCAOB determination of its lack of sufficient access to
inspect our auditor, might pose regulatory risks to and impose restrictions on us because of our operations in mainland China.

 On
May 20, 2020, the U.S. Senate passed the Holding Foreign Companies Accountable Act (the "HFCAA") requiring a foreign company
to certify it is not owned or controlled by a foreign government if the PCAOB is unable to audit specified reports because the Company
uses a foreign auditor not subject to PCAOB inspection. If the PCAOB is unable to inspect the Company's auditors for three consecutive
years, the issuer's securities are prohibited to trade on a national securities exchange or in the over the counter trading market
in the U.S. On December 18, 2020, the HFCAA was signed into law. The HFCAA has since then been subject to amendments by the U.S. Congress
and interpretations and rulemaking by the SEC.

 On
June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act ("AHFCAA"), which proposes
to reduce the period of time for foreign companies to comply with PCAOB audits from three to two consecutive years, thus reducing the
time period before the securities of such foreign companies may be prohibited from trading or delisted. On December 29, 2022, the Consolidated
Appropriations Act, 2023 (the "CAA"), which AHFCAA constitute a part, was signed into law, which officially reduced the number
of consecutive non-inspection years required for triggering the prohibitions under the HFCAA from three years to two, thus, reducing
the time before an applicable issuer's securities may be prohibited from trading or delisted.

 On
December 16, 2021, PCAOB announced the PCAOB HFCAA determinations relating to the PCAOB's inability to inspect or investigate completely
registered public accounting firms headquartered in mainland China of the PRC or Hong Kong, a Special Administrative Region and dependency
of the PRC, because of a position taken by one or more authorities in the PRC or Hong Kong. The inability of the PCAOB to conduct inspections
of auditors in China made it more difficult to evaluate the effectiveness of these accounting firms' audit procedures or quality
control procedures as compared to auditors outside of China that are subject to the PCAOB inspections, which could cause existing and
potential investors in issuers operating in China to lose confidence in such issuers' procedures and reported financial information
and the quality of financial statements.

 Our
previous auditor, Kreit & Chiu CPA LLP, and ARK Pro CPA & Co ("ARK"), our current auditor, both are independent registered
public accounting firms registered with the PCAOB, and are subject to laws in the United States pursuant to which the PCAOB conducts
regular inspections to assess our auditor's compliance with the applicable professional standards. Both our auditors are subject
to inspection by the PCAOB on a regular basis. Our previous and current auditor are not among the firms listed on the PCAOB Determination
List issued in December 2021.

 On
August 26, 2022, the PCAOB announced and signed a Statement of Protocol (the "Protocol") with the China Securities Regulatory
Commission and the Ministry of Finance of the People's Republic of China (together, the "PRC Authorities"). The Protocol
provides the PCAOB with: (1) sole discretion to select the firms, audit engagements and potential violations it inspects and investigates,
without any involvement of Chinese authorities; (2) procedures for PCAOB inspectors and investigators to view complete audit work papers
with all information included and for the PCAOB to retain information as needed; (3) direct access to interview and take testimony from
all personnel associated with the audits the PCAOB inspects or investigates.

 On
December 15, 2022, the PCAOB announced in its 2022 HFCAA Determination Report (the "2022 Report") its determination that
the PCAOB was able to secure complete access to inspect and investigate audit firms in the People's Republic of China (PRC), and
the PCAOB Board voted to vacate previous determinations to the contrary. According to the 2022 Report, this determination was reached
after the PCAOB had thoroughly tested compliance with every aspect of the Protocol necessary to determine complete access, including
on-site inspections and investigations in a manner fully consistent with the PCAOB's methodology and approach in the U.S. and globally.
According to the 2022 Report, the PRC Authorities had fully assisted and cooperated with the PCAOB in carrying out the inspections and
investigations according to the Protocol, and have agreed to continue to assist the PCAOB's investigations and inspections in the
future. The PCAOB may reassess its determinations and issue new determinations consistent with the HFCAA at any time.

 While
the HFCAA and AHFCAA are not currently applicable to the Company because the Company's current auditors are subject to PCAOB review,
if this changes in the future for any reason, the Company may be subject to the HFCAA and AHFCAA. The implications of this regulation
if the Company were to become subject to it are uncertain. Such uncertainty could cause the market price of our common stock to be materially
and adversely affected, and our securities could be delisted or prohibited from being traded on Nasdaq earlier than would be required
by the HFCAA and AHFCAA. If our common stock is unable to be listed on another securities exchange by then, such a delisting would substantially
impair your ability to sell or purchase the common stock when you wish to do so, and the risk and uncertainty associated with a potential
delisting would have a negative impact on the price of the common stock.

 The
economy of China had experienced unprecedented growth. This growth has slowed in the recent years, and if the growth of the economy continues
to slow or if the economy contracts, our financial condition may be materially and adversely affected.

 The
rapid growth of the Chinese economy had historically resulted in widespread growth opportunities for industries across China. This growth
has slowed in the recent years. As a result of the global financial crisis due to the war in Ukraine and the COVID-19 pandemic, enterprises
are becoming more and more difficult to gain comparable access to the same amounts of capital available in past years, which may have
an adverse effect on the business climate and growth of private enterprises in China, including us. An economic slowdown could have an
adverse effect on our sales and may increase our costs. Further, if economic growth continues to slow, and if, in conjunction, inflation
continues unchecked, our costs would be likely to increase, and there can be no assurance that we would be able to increase our prices
to an extent that would offset the increase in our expenses.

 In
addition, a tightened labor markets in our geographic region may result in fewer qualified applicants for job openings in our facilities.
Further, higher wages, related labor costs and other increasing cost trends may negatively impact our results.

 Uncertainties
with respect to the Chinese legal system could have a material adverse effect on us and may restrict the level of legal protections to
foreign investors.

 China's
legal system is based on statutory law. Unlike the common law system, statutory law is based primarily on written statutes. Previous
court decisions may be cited as persuasive authority but do not have a binding effect. Since 1979, the Chinese government has been promulgating
and amending laws and regulations regarding economic matters, such as corporate organization and governance, foreign investment, commerce,
taxation and trade. However, since these laws and regulations are relatively new, and the Chinese legal system continues to rapidly evolve,
the interpretation of many laws, regulations and rules is not always uniform and enforcement of these laws, regulations and rules involves
uncertainties, which may limit legal protections available to us.

 In
addition, any litigation in China may be protracted and may result in substantial costs and diversion of resources and management's
attention. The legal system in China cannot provide investors with the same level of protection as in the U.S. The Company is governed
by laws and regulations generally applicable to local enterprises in China. Many of these laws and regulations were recently introduced
and remain experimental in nature and subject to changes and refinements. Interpretation, implementation and enforcement of the existing
laws and regulations can be uncertain and unpredictable and therefore may restrict the legal protections available to foreign investors.

 Changes
in currency conversion policies in China may have a material adverse effect on us.

 Renminbi
("RMB") is still not a freely exchangeable currency. Since 1998, the State Administration of Foreign Exchange of China has
promulgated a series of circulars and rules in order to enhance verification of foreign exchange payments under Chinese entity's
current account items, and has imposed strict requirements on borrowing and repayments of foreign exchange debts from and to foreign
creditors under the capital account items and on the creation of foreign security in favor of foreign creditors.

 This
may complicate foreign exchange payments to foreign creditors under the current account items and thus may affect the ability to borrow
under international commercial loans, the creation of foreign security, and the borrowing of RMB under guarantees in foreign currencies.
Moreover, the value of RMB may become subject to supply and demand, which could be largely impacted by international economic and political
environments. Any fluctuations in the exchange rate of RMB could have an adverse effect on the operational and financial condition of
the Company and its subsidiaries in China.

 Restrictions
on currency exchange may limit our ability to receive and use our revenue effectively.

 Some
of our revenue is denominated in Renminbi. As a result, restrictions on currency exchange may limit our ability to use revenue generated
in Renminbi to fund any business activities we may have outside China in the future or to make dividend payments to our shareholders
in U.S. dollars. Under current PRC laws and regulations, Renminbi is freely convertible for current account items, such as trade and
service-related foreign exchange transactions and dividend distributions. However, Renminbi is not freely convertible for direct investment
or loans or investments in securities outside China, unless such use is approved by SAFE. For example, foreign exchange transactions
under our subsidiary's capital account, including principal payments in respect of foreign currency-denominated obligations, remain
subject to significant foreign exchange controls and the approval requirement of SAFE. These limitations could affect our ability to
convert Renminbi into foreign currency for capital expenditures. To the extent cash and/or assets in the business is in the PRC or a
PRC entity, the funds and/or assets may not be available to fund operations or for other use outside of the PRC due to interventions
in or the imposition of restrictions and limitations on the ability of us or our subsidiaries by the PRC government to transfer cash
and/or assets. And the Chinese government is further strengthening the control of foreign exchange, we will not be able to change the
Chinese government's decision in our own power.

 Fluctuations
in exchange rates could adversely affect our business and the value of our securities.

 The
value of our common stock will be indirectly affected by the foreign exchange rate between U.S. dollars and RMB and between those currencies
and other currencies in which our sales may be denominated. Because substantially all of our earnings and cash assets are denominated
in RMB, fluctuations in the exchange rate between the U.S. dollar and the RMB will affect our balance sheet and our earnings per share
in U.S. dollars. In addition, appreciation or depreciation in the value of the RMB relative to the U.S. dollar would affect our financial
results reported in U.S. dollar terms without giving effect to any underlying change in our business or results of operations.

 Investors
may experience difficulties in effecting service of legal process, enforcing judgements or bringing original actions based on United
States or foreign laws against us or our management.

 We,
through our PRC operating entities, conduct substantially all of our operations in China and almost all of our assets are located in
China. In addition, almost all of our senior executive officers reside in China. As a result, it may not be possible to effect service
of process on our senior executive officers within the United States or elsewhere outside China, including with respect to matters arising
under U.S. federal securities laws or applicable state securities laws. Moreover, our Chinese counsel has advised us that China does
not have treaties with the United States or many other countries providing for the reciprocal recognition and enforcement of court orders
and final judgments.

 From
time to time, Kandi is involved in several litigations that we believe to be without merit, some have been dismissed, while others are
still pending. We believe we can successfully defend ourselves in such litigations. Moreover, if finally judgements are made against
us, certain plaintiffs may face substantial difficulties in executing such judgement since China does not have treaties with the United
States and certain other countries providing for the reciprocal recognition and enforcement of court orders and final judgments.

 Risks
Associated With the Export of Kandi Electric Vehicles to and sale in the United States

 The
enactment of Inflation Reduction Act (IR Act) of 2022 may influence the value of our securities.

 On August 16, 2022, the Inflation
Reduction Act of 2022 (the "IR Act") was signed into federal law. The IR Act provides for, among other things,
a new U.S. federal excise tax on certain repurchases (including redemptions) of stock or shares by publicly traded domestic
(i.e., U.S.) corporations and certain domestic subsidiaries of publicly traded foreign corporations, if during that taxable year,
the total value of the stock repurchased is more than $1 million. The amount of the excise tax is generally 1% of the fair market
value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing
corporations are permitted to net the fair market value of certain new stock or share issuances against the fair market value of
stock or share repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The IR Act applies
only to repurchases that occur after December 31, 2022. The Company repurchased 184,566 shares and 540,362 shares of the
Company's stock in December 2023 and the first two months of 2024, respectively, such repurchases are subject to the IR
Act, however, we currently do not anticipate this provision of the IR Act to have any material impact on our financial position,
results of operations or cash flows.

 Our
intellectual property rights may be harmed by competitors preemptively filing legitimate and illegitimate patents, which could create
significant barriers for our business by preventing us from adequately protecting our intellectual property.

 Multinational
automobile companies usually obtain patent portfolios consisting of basic patents and peripheral patents on improvements and related
technologies, thereby creating patent barriers in the industry. At the same time, certain multinational automobile companies also maliciously
apply for patents, in order to obtain an unlawful competitive advantage or to directly receive invalid rights and use patents as weapons
in litigation. New energy vehicles are emerging products in worldwide markets in recent years, while relevant and related patents in
the industry are still in force. Kandi may be seriously adversely affected by intellectual property rights barriers through participation
in the competitive international automobile market. Therefore, Kandi faces risks of patent barriers and intellectual property litigation
in the future.

 Failures
in our U.S. business may present a risk of significant losses to our business.

 Our
automobile product export and overseas operations sections involve import and export currency exchange, insurance, ocean transportation,
customs clearance and various other logistical procedures. A loss of trust in any part of the chain can lead to the failure of transactions,
which in turn causes huge losses to our enterprise. In the future, the Company will expand its overseas market. Any insufficient assessment
of the capital strength and commercial credit of its partners, or any fraud in risk prevention and risk control systems may cause economic
losses for the Company due to its business partners' breach of contract or even fraud. In short, shipping Kandi electric vehicles
and products to the United States may have risks in the U.S. operation, and import and export trade process.

 The
United States has strict environmental laws and regulations which may cause us to expend significant sums to comply with such laws and
regulations.

 The
United States and other developed countries have strong awareness of environmental protection and product safety regulations. The penalties
for violating environmental laws in such countries are extremely high. Developed countries have mature and highly saturated automobile
markets. Costs associated with maintaining controls over atmospheric emissions, harmful toxic substances, and products safety are getting
higher in an accelerated manner. The process for a company to obtain the applicable certifications is time-consuming, complicated and
expensive. Kandi will also face the adverse impact of compliance with policy and regulatory standards in the United States. Thus, Kandi
may face the risk of not being able to sustain its business in accordance with US and state environmental protection and product safety
policies and regulations.

 Our
short-term financial performance may suffer due to our investment in expanding our presence and sales in the United States.

 Chinese
auto products have market competition disadvantages in terms of technology content, product structure, product quality and brand influence.
It is difficult to reverse the sentiment of "low quality and low price" that has followed Chinese automobiles for a long
time, resulting in weakened bargaining power for Chinese auto companies and generally low gross profit margins. Kandi is expanding into
the US market and rely on overseas distributors to establish a marketing network and after-sales service guarantee system. All actions
require the Company to invest a certain amount of resources. Additionally electric vehicle sales may face a slow growth period. In a
certain period of time, the growth of operating income lags behind the increase in sales inputs. At the same time, the Company cannot
predict the direct economic loss caused by an unsatisfactory market expansion caused by the adverse factors of market competition. Cash
flows for Kandi and SC Autosports may be significantly adversely affected by large investments and small revenues in the short term.
Therefore, there may be a risk that the short-term financial performance indicators will fall due to factors such as the expansion of
resources in overseas markets.

 Lack
of authorized dealer and absence of after-sales maintenance may negatively affect our business and sales in U.S.

 In
U.S. market, without authorized dealers, the delivery of EVs and pure electric off-road vehicles may be delayed. Hence customers may
delay, reduce or cancel the purchase orders of our EVs and pure electric off-road vehicles, and our business operations may be adversely
affected. At the same time, in the absence of after-sales maintenance by the dealers, not only the cost and complexity of maintenance
will be increased, it will also affect customers' access to warranty and other after-sales service support, which may then weaken
customers' confidence in our brand, and we may even encounter potential lawsuits due to lack of support to the customers. This
can affect our brand and business, and bring an adverse impact to the financial condition and operating performance of the Company.

 Risks
Relating to Ownership of Our Securities

 Our
stock price may be volatile, which may result in losses for our shareholders.

 The
stock markets have experienced significant price and trading volume fluctuations. Although our stock has been trading on the NASDAQ Global
Select Market since January 2, 2014, the trading price of our common stock may be volatile and could fluctuate significantly in response
to many factors, including the following, some of which are beyond our control:

 variations in our operating
 results;

 changes in expectations
 of our future financial performance, including financial estimates by securities analysts and investors;

 changes in operating and
 stock price performance of other companies in our industry;

 additions or departures
 of key personnel; or

 general sentiment on China-based
 companies' securities.

 These
fluctuations, as well as general economic and political conditions unrelated to our performance, may adversely affect the price of our
common stock.

 Mr.
Hu, our Chairman of our Board, is the beneficial owner of a substantial portion of our outstanding common stock, which may enable Mr.
Hu to exert significant influence on corporate actions.

 Excelvantage
Group Limited ("Excelvantage") controls approximately 14.68% of our outstanding
shares of common stock as of December 31, 2023. Hu Xiaoming, the Company's Chairman of the Board of Directors, is the sole stockholder
of Excelvantage. Together with the shares held through Excelvantage, Mr. Hu controls 16.52%
of our outstanding shares of common stock, which could have a substantial impact on matters requiring the vote of our shareholders, including
the election of our directors and other corporate actions. This control could delay, defer or prevent others from initiating a potential
merger, takeover or other change in control, even if these actions would benefit our other shareholders and the Company. This control
could adversely affect the voting and other rights of our other shareholders and could depress the market price of our common stock.

 Our
ability to distribute dividends is restricted by PRC Company Law and Foreign Investment Law.

 According
to the PRC Company Law and Foreign Investment Law, our PRC subsidiary, as a foreign-invested enterprise, or FIE, we may only pay dividends
out of their accumulated profit, if any, as determined in accordance with PRC accounting standards and regulations. In addition we are
required to draw 10% of its after-tax profits each year, if any, to fund a common reserve, which may stop drawing its after-tax profits
if the aggregate balance of the common reserve has already accounted for over 50% of its registered capital. The reserve funds are not
distributable as cash dividends. A PRC company is not permitted to distribute any profits until any losses from prior fiscal years have
been offset. Our ability to distribute dividends may be restricted because of the above-mentioned regulations. We may even cannot distribute
dividends if we are suffering loss in certain fiscal year in the future.

 We
do not anticipate paying cash dividends to our common shareholders.

 We
presently do not anticipate that we will pay dividends on any of our common stock in the foreseeable future. If payment of dividends
does occur at some point in the future, it would be contingent upon our revenues and earnings, if any, capital requirements, and general
financial condition. The payment of any common stock dividends will be within the discretion of our Board. We presently intend to retain
all earnings in order to implement our business plan; accordingly, we do not anticipate the declaration of any dividends for common stock
in the foreseeable future.

 The
limitation of monetary liability against our directors, officers and employees under Delaware Law and the existence of statutory indemnification
rights of our directors, officers and employees may result in substantial expenditures by our company and may discourage lawsuits against
our directors, officers and employees.

 Our
certificate of incorporation does not contain any specific provisions that limit the liability of our directors for monetary damages
to the Company or shareholders; however, we are prepared to indemnify our directors and officers to the extent provided for by Delaware
law. We may also have included contractual indemnification obligations in our employment agreements with our officers. The foregoing
indemnification obligations could result in the Company incurring substantial expenditures to cover the cost of settlement or damage
awards against its directors and officers, which we may be unable to recoup. These provisions and resultant costs may also discourage
the Company from bringing a lawsuit against directors and officers for breaches of their fiduciary duties, and may similarly discourage
the filing of derivative litigation by our shareholders against our directors and officers even though such actions, if successful, might
otherwise benefit the Company and shareholders.

 We
may require additional capital, and the sale of additional shares or other equity securities could result in additional dilution to our
shareholders.

 In
the future, we may require additional cash resources due to changed business conditions or other future developments, including investments
or acquisitions that we may decide to pursue. If our resources are insufficient to satisfy our cash requirements, we may seek to sell
additional equity or debt securities or obtain a credit facility. The sale of additional equity securities could result in dilution to
our shareholders. The incurrence of indebtedness would result in increased debt service obligations and could result in operating and
financing covenants that would restrict our operations. We cannot assure investors that financing will be available, if at all, in amounts
or on terms acceptable to us.

 Our
business is subject to changing regulations related to corporate governance and public disclosure that may increase both our costs and
the risk of noncompliance.

 Because
our common stock is publicly traded, we are subject to certain rules and regulations of federal, state and financial market exchange
entities charged with the protection of investors and the oversight of companies whose securities are publicly traded. These entities,
including the Public Company Accounting Oversight Board, the SEC and NASDAQ, have issued requirements and regulations and continue to
develop additional regulations and requirements in response to corporate scandals and laws enacted by Congress. Our efforts to comply
with these regulations have resulted in, and are likely to continue resulting in, increased general and administrative expenses and diversion
of management time and attention from revenue generating activities to compliance activities. Because new and modified laws, regulations
and standards are subject to varying interpretations in many cases due to their lack of specificity, their application in practice may
evolve over time as new guidance is provided by regulatory and governing bodies. This evolution may result in continuing uncertainty
regarding compliance matters and additional costs necessitated by ongoing revisions to our disclosure and governance practices.

 Techniques
employed by manipulative short sellers in Chinese small cap stocks may drive down the market price of our common stock.

 Short
selling is the practice of selling securities that the seller does not own but rather has, supposedly, borrowed from a third party with
the intention of buying identical securities back at a later date to return to the lender. The short seller hopes to profit from a decline
in the value of the securities between the sale of the borrowed securities and the purchase of the replacement shares, as the short seller
expects to pay less in that purchase than it received in the sale. As it is therefore in the short seller's best interests for
the price of the stock to decline, many short sellers (sometimes known as "disclosed shorts") publish, or arrange for the
publication of, negative opinions or reports regarding the relevant issuer and its business prospects in order to create negative market
momentum and generate profits for themselves after selling a stock short. These short attacks have, in the past, led to selling of shares
in the market, on occasion in large scale and broad base.

 Short
seller publications are not regulated by any governmental, self-regulatory organization or other official authority in the U.S. and are
not subject to the certification requirements imposed by the Securities and Exchange Commission in Regulation AC (Regulation Analyst
Certification) and, accordingly, the opinions they express may be based on distortions of actual facts or, in some cases, fabrications
of facts. In light of the limited risks involved in publishing such information, and the enormous profit that can be made from running
just one successful short attack, unless the short sellers become subject to significant penalties, it is more likely than not that disclosed
short sellers will continue to issue such reports.

 While
we intend to strongly defend our public filings against any such short seller attack, often times we are constrained, either by principles
of freedom of speech, applicable state law (often called "Anti-SLAPP statutes"), or issues of commercial confidentiality,
in the manner in which we can proceed against the relevant short seller. You should be aware that in light of the relative freedom to
operate that such persons enjoy - oftentimes blogging from outside the U.S. with little or no assets or identity requirements - should
we be targeted for such an attack, our stock will likely suffer from a temporary, or possibly long term, decline in market price should
the rumors created not be dismissed by market participants.

 Risks Relating to the Reincorporation

 Your rights as a shareholder of Kandi will
change as a result of the Reincorporation and you may not be afforded as many rights as a shareholder of Kandi BVI under applicable laws
and the Kandi BVI memorandum and articles of association as you were as a shareholder of Kandi under applicable laws and the Kandi certificate
of incorporation and bylaws.

 Following the consummation of the Reincorporation,
the resulting company's corporate affairs will be governed by its memorandum and articles of association, the BVI Business Companies
Act, 2004 (as amended) of the British Virgin Islands (the "Act") and the common law of the British Virgin Islands. The rights
of shareholders to take action against the directors, actions by minority shareholders and the fiduciary responsibility of the directors
under BVI law are governed by the Act and the common law of the British Virgin Islands. The common law of the British Virgin Islands is
derived in part from comparatively limited judicial precedent in the British Virgin Islands as well as from English common law, which
has persuasive, but not binding, authority on a court in the British Virgin Islands. The rights of shareholders and the fiduciary responsibilities
of directors under BVI law may not be as clearly established as they would be under statutes or judicial precedent in the state of Delaware.
In particular, the British Virgin Islands has a less developed body of securities laws as compared to the United States, and some
states (such as Delaware) have more fully developed and judicially interpreted bodies of corporate law.

 Although we have attempted to preserve in the
memorandum and articles of association of Kandi BVI the same allocation of material rights and powers between the shareholders and our
Board of Directors that exists under Kandi's bylaws and certificate of incorporation, because of differences between Delaware law
and British Virgin Islands law and differences between the governing documents of Kandi and Kandi BVI, your rights as a shareholder in
Kandi BVI will not be the same as your rights as a shareholder in Kandi.

 BVI companies may not be able to initiate
shareholder derivative actions, thereby depriving shareholders of the ability to protect their interests.

 BVI companies may not have standing to initiate
a shareholder derivative action in a federal court of the United States. The circumstances in which any such action may be brought,
and the procedures and defenses that may be available in respect to any such action, may result in the rights of shareholders of a BVI
company being more limited than those of shareholders of a company organized in the United States. Accordingly, Kandi BVI shareholders
may have fewer alternatives available to them if they believe that corporate wrongdoing has occurred. The BVI courts are also unlikely
to recognize or enforce against Kandi BVI's judgments of courts in the United States based on certain liability provisions
of U.S. securities law and to impose liabilities against it, in original actions brought in the British Virgin Islands, based on
certain liability provisions of U.S. securities laws that are penal in nature.

 Under the laws of the British Virgin Islands,
there are some statutory provisions for the protection of minority shareholders under the Act. The principal protection under the Act
is that shareholders may bring an action to enforce the memorandum and articles of association of a BVI company. The Act sets forth the
procedure to bring such a claim. Shareholders of a BVI Company are entitled to have the affairs of the company conducted in accordance
with the general law and the memorandum and articles of association. Pursuant to Kandi BVI's constitutional documents, the company
is obliged to hold an annual general meeting unless the Company elects to rely on the exemption available under the NASDAQ Stock Market
by following applicable procedures. BVI companies are not obligated to appoint an independent auditor and shareholders are not entitled
to receive the audited financial statements of the company.

 There are common law rights for the protection
of shareholders that may be invoked. Such rights have also now been given a statutory basis under the Act. The common law rights are largely
dependent on English company law, since the common law of the British Virgin Islands for companies incorporated under the Act is limited.
Under the general rule pursuant to English company law, a court will generally refuse to interfere with the management of a company at
the insistence of a minority of its shareholders who express dissatisfaction with the conduct of the company's affairs by the majority
or the board of directors. However, every shareholder is entitled to have the affairs of the company conducted properly according to law
and the constituent documents of the company. As such, if those who control the company have persistently disregarded the requirements
of company law or the provisions of the company's memorandum or articles of association, then the courts will grant relief. Generally,
the areas in which the courts will intervene include the following:

 an
act complained of which is outside the scope of the authorized business or is illegal or not capable of ratification by the majority,

 acts
that constitute fraud on the minority where the wrongdoers control the company,

 acts
that infringe on the personal rights of the shareholders, such as the right to vote, and

 where
the company has not complied with provisions requiring approval of a special or extraordinary majority of shareholders, which are more
limited than the rights afforded to minority shareholders under the laws of the State of Delaware in the United States.

 Kandi BVI's Amended and Restated Articles
of Association provide for the exclusive jurisdiction of the Courts of the British Virgin Islands for substantially all disputes between
Kandi BVI and its shareholders, which could limit the shareholders' ability to obtain a favorable judicial forum for disputes with
Kandi BVI or its directors, officers, other employees or shareholders.

 Kandi BVI's Amended and Restated Articles
of Association provide for the exclusive jurisdiction of the Courts of the British Virgin Islands for the following civil actions:

 any
derivative action or proceeding brought on behalf of Kandi BVI, including actions arising under the U.S. federal securities laws;

 any
action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Kandi BVI to the Kandi
BVI or its Members;

 any
action asserting a claim arising pursuant to any provision of British Virgin Islands law or Kandi BVI's Memorandum or Articles
of Association;

 any
action asserting a claim against the Kandi BVI governed by the internal affairs doctrine.

 This exclusive jurisdiction provision may limit
a member's ability to bring a claim in a judicial forum that it finds favorable for disputes with Kandi BVI or any of its directors,
officers, other employees or members, which may discourage lawsuits with respect to such claims, although Kandi BVI's members will
not be deemed to have waived Kandi BVI's compliance with U.S. federal securities laws and the rules and regulations thereunder
applicable to foreign private issuers. Alternatively, if a court were to find the exclusive jurisdiction provision contained in the Amended
and Restated Articles of Association to be inapplicable or unenforceable in an action, Kandi BVI may incur additional costs associated
with resolving such action in other jurisdictions, which could harm Kandi BVI's business, operating results and financial condition.
The exclusive jurisdiction provision would not prevent derivative shareholder actions based on claims arising under U.S. federal
securities laws from being raised in a U.S. court and would not prevent a U.S. court from asserting jurisdiction over such claims.
However, there is uncertainty whether a U.S. court would enforce the exclusive jurisdiction provision for actions for breach of fiduciary
duty and other claims.

 As a foreign private issuer, Kandi BVI is
permitted to, and Kandi BVI may in the future choose to follow certain corporate governance practices in accordance with British Virgin
Island law in lieu of certain NASDAQ requirements applicable to U.S. issuers. As a result, Kandi BVI's members may not have
the protections afforded by these corporate governance requirements, which may make its ordinary shares less attractive to investors or
otherwise harm the trading price or value of its ordinary shares.

 As a foreign private issuer, Kandi BVI will be
permitted to follow certain corporate governance practices in accordance with British Virgin Island laws in lieu of certain NASDAQ requirements,
although Kandi BVI will be subject to certain independence requirements with respect to its audit committee under NASDAQ rules. NASDAQ
listing rules require, inter alia, that (i) a majority of the board of directors of a listed company be comprised of
independent directors; (ii) each listed company have an audit committee comprised of at least three members, each of whom must be
an independent director; and (iii) each listed company have a compensation committee comprised of at least two members, each of whom
must be an independent director.

 Under British Virgin Islands law, the directors
of Kandi BVI owe to it fiduciary duties, including a duty of loyalty, a duty to act honestly and a duty to act in good faith and in a
manner they believe to be in Kandi BVI's best interests. The directors also have a duty to exercise the skill they actually possess
and such care and diligence that a reasonably prudent person would exercise in comparable circumstances. In fulfilling their duty of care
to Kandi BVI, the directors must ensure compliance with its articles of association, as amended and restated from time to time.

 A foreign private issuer must disclose in its
annual reports filed with the SEC each NASDAQ requirement it does not comply with, followed by a description of its applicable home country
practice. As a company incorporated in the British Virgin Islands and to be listed on the NASDAQ, Kandi BVI may in the future choose to
follow its home country practice with respect to the composition of Kandi BVI's board of directors and Nomination and Compensation
Committees. Unlike the requirements of the NASDAQ, Kandi BVI would not be required to:

 independence
of board

 independence
of committees

 regularly
scheduled executive sessions with only independent directors

 adopt
and disclose a code of ethics for directors, officers and employees.

 Accordingly, if Kandi BVI were to rely on such
exemptions, its shareholders would not have the same protection afforded to shareholders of companies that are subject to all of the NASDAQ
corporate governance requirements, which could make its ordinary shares less attractive to some investors or could otherwise harm the
ordinary share price.

 The expected benefits of the Reincorporation
may not be realized.

 We cannot be assured that all of the goals of
the Reincorporation will be achievable, and some or all of the anticipated benefits of the Reincorporation may not occur, particularly
as the achievement of the benefits are in many important respects subject to factors that we do not control. These factors would include
such things as the reactions of third parties with whom we enter into contracts and do business and the reactions of investors and analysts.
In addition, the anticipated reduction of SEC reporting requirements and related expenses may not be achieved in the event of changes
to the SEC rules applicable to foreign private issuers or if we fail to qualify as a foreign private issuer. While we expect the Reincorporation
will enable us to reduce our operational, administrative, legal and accounting costs over the long term, these benefits may not be achieved.

 As a foreign private issuer, Kandi BVI will
not be required to provide its shareholders with the same information as Kandi would if Kandi remained a U.S. public issuer and,
as a result, you may not receive as much information about Kandi BVI as you did about Kandi and you may not be afforded the same level
of protection as a shareholder of Kandi BVI under applicable laws and the Kandi BVI memorandum and articles of association as you were
as a shareholder of Kandi under applicable laws and the Kandi certificate of incorporation and bylaws.

 Kandi BVI is expected to qualify as a "foreign
private issuer" under the rules and regulations of the SEC. Kandi BVI will remain subject to the mandates of the Sarbanes-Oxley
Act, and, as long as the Kandi BVI's ordinary shares are listed on the NASDAQ, the governance and disclosure rules of that stock
exchange. However, as a foreign private issuer, Kandi BVI will be exempt from certain rules under the Exchange Act that would otherwise
apply if Kandi BVI were a company incorporated in the United States or did not meet the other conditions to qualify as a foreign
private issuer. For example:

 Kandi
BVI may include in its SEC filings financial statements prepared in accordance with U.S. GAAP or with IFRS as issued by the IASB
without reconciliation to U.S. GAAP;

 Kandi
BVI will not be required to provide as many Exchange Act reports, or as frequently or as promptly, as U.S. companies with securities
registered under the Exchange Act. For example, Kandi BVI will not be required to file current reports on Form 8-K within four business
days from the occurrence of specific material events. Instead, Kandi BVI will need to promptly furnish reports on Form 6-K any information
that Kandi BVI (a) makes or is required to make public under the laws of the British Virgin Islands, (b) files or is required
to file under the rules of any stock exchange or (iii) otherwise distributes or is required to distribute to its shareholders. Unlike
Form 8-K, there is no precise deadline by which Form 6-K must be furnished. In addition, Kandi BVI will not be required to
file its annual report on Form 10-K, which may be due as soon as 60 days after its fiscal year end. As a foreign private issuer,
Kandi BVI will be required to file an annual report on Form 20-F within four months after its fiscal year end;

 Kandi
BVI will not be required to provide the same level of disclosure on certain issues, such as executive compensation;

 Kandi
BVI will not be required to conduct advisory votes on executive compensation;

 Kandi
BVI will be exempt from filing quarterly reports under the Exchange Act with the SEC;

 Kandi
BVI will not be subject to the requirement to comply with Regulation FD, which imposes certain restrictions on the selected disclosure
of material information;

 Kandi
BVI will not be required to comply with the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations
in respect of a security registered under the Exchange Act; and

 Kandi
BVI will not be required to comply with Section 16 of the Exchange Act requiring insiders to file public reports of their stock
ownership and trading activities and establishing insider liability for profits realized from any "short-swing" trading transaction.

 If Kandi BVI takes advantage of these exemptions
if the Reincorporation is effected, after the completion of the Reincorporation, if you hold Kandi BVI securities, you may receive less
information about Kandi BVI and its business than you currently receive with respect to Kandi and be afforded less protection under the
U.S. federal securities laws than you are entitled to currently. However, consistent with our policy of seeking input from, and engaging
in discussions with, our shareholders, on executive compensation matters, Kandi BVI intends to provide disclosure relating to its executive
compensation philosophy, policies and practices and conduct an advisory vote on executive compensation once every year after the Reincorporation
is effected. However, Kandi BVI expects to review this practice after the next such advisory vote and may at that time or in the future
determine to conduct such advisory votes more or less frequently or to not conduct them at all.

 Changes in domestic and foreign laws, including
tax law changes, could adversely affect Kandi BVI, its subsidiaries and its shareholders, and the effective tax rate may increase.

 Changes in tax laws, regulations or treaties
or the interpretation or enforcement thereof, in both or either of the U.S. or the British Virgin Islands, could adversely affect
the tax consequences. While the Reincorporation is not anticipated to have any material impact on the effective tax rate, there is uncertainty
regarding the tax policies of the jurisdictions where we operate, and the effective tax rate may increase and any such increase may be
material.

 Item 1B. Unresolved
Staff Comments.

 None.

 Item 1C. Cybersecurity.

 Governance

 Our Director of Internal Control and Chief Financial
Officer oversee our cybersecurity risk management program described in "Risk Management and Strategy" below. While the Board
of Directors has overall responsibility for risk oversight, it is supported in this regard by the Audit Committee. The Audit Committee
assists the Board of Directors in monitoring cybersecurity risk by receiving updates from and engaging in discussions as needed with the
Director of Internal Control and the Chief Financial Officer, that cover, among other things, our cybersecurity risk management program,
response readiness and training efforts. The Audit Committee updates the full Board of Directors on cybersecurity matters as appropriate.

 Risk Management and Strategy

 Our cybersecurit y
risk management strategy focuses on several areas:

 Identification
 and Reporting: We have implemented a cross-functional approach to assessing, identifying
 and managing material cybersecurity threats and incidents. Our program includes controls
 and procedures to identify, classify and escalate certain cybersecurity incidents to provide
 management visibility and obtain direction from management as to the public disclosure and
 reporting of material incidents in a timely manner.

 Technical
 Safeguards: We implement technical safeguards that are designed to protect our information
 systems from cybersecurity threats, including firewalls, intrusion prevention and detection
 systems, anti-malware functionality, and access controls, which are evaluated and improved
 through vulnerability assessments and cybersecurity threat intelligence, as well as outside
 audits and certifications.

 Incident
 Response and Recovery Planning: We are establishing incident response, business continuity,
 and disaster recovery plans designed to address our response to a cybersecurity incident.

 Third-Party
 Risk Management: We maintain a risk-based approach to identifying and overseeing material
 cybersecurity threats presented by third parties, including vendors, service providers, and
 other external users of our systems, as well as the systems of third parties that could adversely
 impact our business in the event of a material cybersecurity incident affecting those third-party
 systems, including any outside auditors or consultants who advise on our cybersecurity systems.

 Periodic
 Assessments: We conduct periodic assessments and testing of our policies, standards, processes,
 and practices in a manner intended to address cybersecurity threats and events. The results
 of such assessments, audits, and reviews are evaluated by management and reported to our
 Audit Committee and our board of directors, and we adjust our cybersecurity policies, standards,
 processes, and practices as necessary based on the information provided by these assessments,
 audits, and reviews.

 Item 2. Properties.

 Kandi had the following
granted land use rights as of December 31, 2023:

 Area

 Location

 Term and Expiration

 Certificate No.

 Jinhua New Energy Vehicle Town

 58,587

 Oct 22, 2020 - Oct 22, 2070

 33201931343

 Zhejiang Qiaoxia Industrial Park

 5,864

 Apr 03, 2001 - Apr 03, 2051

 574-26-36

 Zhejiang Qiaoxia Industrial Park

 3,851

 Jan 21, 2018 - Jan 20, 2068

 3310-1414461

 Xinyu South of Tantang Road, East of Longteng Road

 72,720

 Jun 15, 2022 - Dec 2, 2071

 36006007453

 All land in China
is owned by the government and cannot be sold or transferred by or to any individual or private entity. Instead, the government grants
or allocates landholders "land use rights." There are four methods to acquire land use rights:

 grant of the right to use land;

 assignment of the right to use land;

 lease of the right to use land; or

 allocated land use rights.

 In comparison with
the western common law concepts, granted land use rights are similar to life estates and allocated land use rights are in some ways similar
to leaseholds.

 Granted land use
rights are provided by the Chinese government in exchange for a grant fee and carry the rights to pledge, mortgage, lease, and transfer
during the term of the grant. Land is granted for a fixed term, which is generally 70 years for residential use, 50 years for industrial
use, and 40 years for commercial or other use. The term is renewable in theory. Granted land must be used for the specific purpose for
which it was granted.

 Allocated land
use rights cannot be pledged, mortgaged, leased, or transferred. They are generally provided by the government for an indefinite period
(usually to state-owned entities) and can be reclaimed by the government at any time. Allocated land use rights may be converted into
granted land use rights upon the payment of a grant fee to the government.

 Kandi has the following
real estate properties:

 Jinhua City, Zhejiang

Technologies owns the following facilities located in Jinhua New Energy Vehicle Town, Jinhua City, Zhejiang Province, China. The table
below lists the primary facilities and the status of each facility as of December 31, 2023:

 Area

 Factories

 84,717

 Office

 6,195

 Staff quarters

 5,643

 Other

 Yongkang City, Zhejiang

 Yongkang Scrou
owns the following facilities located in Yongkang City, Zhejiang Province, China. The table below lists the primary facilities and the
status of each facility:

 Area

 Office

 1,237

 Factories

 11,054

 Warehouse

 Multi-purpose room

 Haikou City, Hainan

 In December 2015,
the Company signed an investment contract with Haikou State High Technology Industry Development Zone to build the EV production facility
in Haikou City for the capacity of an annual production of 100,000 EV products. The Hainan facility's main project including manufacturing
plant and office, main manufacturing equipment.

 Project completion
acceptance means the process that the responsible construction unit, contractor and inspection and acceptance committee carry out their
inspection and appraisal for the overall project after the project is completed and qualified for trial production. The inspection and
appraisal are based on design documents, construction acceptance rules and quality inspection standards approved, in accordance with related
procedures and formalities. Project completion acceptance is the last step in the whole process of a project construction, and is also
necessary before formal production.

 Acceptance process
mainly includes 1) quality acceptance of buildings organized by government construction regulators; 2) acceptance of fire safety facilities;
3) acceptance of environmental protection technology; and 4) trial production acceptance of production facilities.

 As of December 31, 2023, the facilities has been completed and the factory has
passed the completion acceptance inspection.

 Area

 Floor area of Hainan Factories

 145,000
 *

 *

 Calculation based on the planning map provided by Haikou State High Technology Industry Development Zone as the land certificate is being processed.

 Xinyu City, Jiangxi

 Jiangxi Huiyi owns
the following facilities located in Xinyu City, Jiangxi Province, China. The table below lists the primary facilities and the status of
each facility:

 Area

 Office

 3,482

 Factories

 15,795

 Warehouse

 6,411

 Staff quarters

 6,351

 Canteen

 3,197

 Dallas, Texas

 Kandi Investments
owns the following facilities located in Dallas, Texas. The table below lists the primary facilities and the status of each facility
as of December 31, 2023:

 Area

 (Sq. Ft.)

 Assembly area

 43,524

 Office

 5,536

 Show room

 5,312

 Garland, Texas

 Kandi Investments
owns the following facilities located in Garland, Texas. The table below lists the primary facilities and the status of each facility
as of December 31, 2023:

 Area

 (Sq. Ft.)

 Warehouse area

 74,758

 Item 3. Legal
Proceedings.

 From time to time,
the Company is involved in legal matters arising in the ordinary course of business. Except as set forth in Note 23 - COMMITMENTS AND
CONTINGENCIES under Item 8 Notes to Consolidated Financial Statements, our management is currently not aware of any legal matters or pending
litigation that would have a significant effect on the Company's results of operation of financial statements. For the detailed
discussion of our legal proceedings, please refer to Note 23 - COMMITMENTS AND CONTINGENCIES under Item 8 Notes to Consolidated Financial
Statements, which is incorporated by reference herein.

 Other than the
above described legal proceedings, the Company is not aware of any other legal matters in which any director, officer, or any owner of
record or beneficial owner of more than five percent of any class of voting securities of the Company, or any affiliate of any such director,
officer, affiliate of the Company, or security holder, is a party adverse to the Company or has a material adverse interest to the Company.
No provision has been made in the consolidated financial statements for the above contingencies.

 Item 4. Mine
Safety Disclosures.

 Not applicable.

 Item 5. Market
for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

 Market Information

 On January 2, 2014,
our common stock began trading on the NASDAQ Global Select Market under the symbol "KNDI".

 Holders of Common
Stock

 As of March 8, 2024, there were 45 shareholders
of record of our common stock. This does not include all beneficial holders who hold shares through their brokerage accounts.

 Dividends

 We have never paid
cash dividends on our common stock. Our policy is to retain all earnings, if any, to provide funds for the operation and expansion of
our business. We do not anticipate paying cash dividends in the foreseeable future. Any future determination to declare cash dividends
will be made at the discretion of our Board, subject to applicable laws, and will depend on our financial condition, results of operations,
capital requirements, general business conditions and other factors that our Board may deem relevant.

 Sales of Unregistered
Securities

 None.

 Purchases of
Equity Securities by the Issuer and Affiliated Purchasers

 The Company has
not repurchased any common shares during the fiscal year ended December 31, 2023, other than those described below:

 On November 21,
2023, the board of directors had authorized the repurchase of up to $30 million worth of the Company's common stock in open market
transactions or in privately negotiated transactions. As of December 31, 2023, the Company had repurchased a total of 184,566 common shares
at an average stock price of $2.75 per share under the repurchase plan.

sets forth information regarding shares of our common stock that we repurchased in the fiscal year ended December 31, 2023.

 (a)

 (b)

 (c)

 (d)

 Period

 Total number

 of shares

 purchased

 Average

 price paid

 per share

 Total number
 of shares

purchased as

part of publicly

 announced

 plans or

 programs

 Maximum

 number (or

 approximate

 dollar value) of

 shares that may

yet be purchased

 under the plans

 or programs

 October 1 to October 31, 2023

 -

 $
 -

 -

 $
 -

 November 1 to November 30, 2023

 -

 $
 -

 -

 $
 -

 December 1 to December 31, 2023

 184,566

 $
 2.75

 184,566

 $
 29,492,444

 Total

 184,566

 $
 2.75

 184,566

 $
 29,492,444

 Securities Authorized for Issuance under
Equity Compensation Plans

 Equity Compensation Plan Information

 Plan category

 securities to

 be
 issued upon
 exercise of
 outstanding
 options,

 warrants
 and rights

 Weighted-

average
 exercise

 price of
 outstanding
 options,

 warrants
 and rights

 securities
 remaining

 available for
 future

 issuance

 under
 equity

 compensation
 plans

 (excluding
 securities

 reflected
 in column (a))

 (a)

 (b)

 (c)

 Equity compensation plans not approved by security holders

 N/A

 $
 N/A

 N/A

 Equity compensation plans approved by security holders

 4,301,358
 (1)

 3.7

 1,152,082

 Totals

 4,301,358

 $
 3.7

 1,152,082

 (1)

 Include the grant of 68,019 stock options to 8 employees approved by the Compensation Committee of
 the Board of Directors on July 1, 2023. The options are exercisable at an exercise price of $3.96 per share.

 Item 6. [Reserved]

 Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operation.

 Overview

 Kandi Technologies
Group, Inc. ("Kandi Technologies") is a Delaware holding company, which is trading on the NASDAQ Global Select Market.
As a holding company with no material operations of our own, we conduct a substantial majority of our operations through our wholly-owned
subsidiaries established in the People's Republic of China, or the PRC, including Zhejiang Kandi Technologies Group, Co. Ltd. ("Zhejiang
Kandi Technologies") and U.S. wholly-owned subsidiaries SC Autosports, LLC ("SC Autosports") and their subsidiaries.

 Now with the global trend of "fuel to electrification"
of off-road vehicles becoming more and more obvious, we have successfully developed a series of pure electric off-road vehicles and put
them on the market in batches, which have been favored by users. Next, we will successively launch various electric off-road vehicles,
including electric crossover golf carts and electric UTVs. With the successively introduction of new products, we are confident to achieve
sustained growth in the field of the pure electric off-road vehicles. As for our EV business, due to the fact that the Chinese EV market
has not entered a healthy and orderly development stage, currently the Company will continue to operate in small-scale, and join back
as appropriate when the EV market of China entered a healthy and orderly development stage.

 For the year ended December 31, 2023, we recognized
total revenue of $123,599,232 as compared to $117,813,049 for the same period of 2022, an increase of $5,786,183 or 4.9%. For the year
ended December 31, 2023, we recorded $41,370,023 of gross profit, an increase of 112.0% from the same period of 2022. Gross margin
for the year ended December 31, 2023, was 33.5%, compared to 16.6% for the same period of 2022. We recorded a net income of $1,669,767
for the year ended December 31, 2023, compared to a net loss of $12,851,024 in the same period of 2022.

 Results of Operations

 Comparison of Years Ended December 31,
2023 and 2022

sets forth the amounts and percentage to revenue of certain items in our condensed consolidated statements of operations and comprehensive
income (loss) for the years ended December 31, 2023 and 2022:

 Years Ended

2023

 % of

 Revenue

 2022

 % of

 Revenue

 Change in

 Amount

 Change

 in %

 REVENUES, NET

 $

 100.0
 %

 $

 100.0
 %

 5,786,183

 4.9
 %

 COST OF GOODS SOLD

 (82,229,209
)

 (66.5
)%

 (98,295,323
)

 (83.4
)%

 16,066,114

 (16.3
)%

 GROSS PROFIT

 41,370,023

 33.5
 %

 16.6
 %

 21,852,297

 112.0
 %

 OPERATING EXPENSE:

 Research and development

 (4,265,176
)

 (3.5
)%

 (6,029,608
)

 (5.1
)%

 1,764,432

 (29.3
)%

 Selling and marketing

 (13,335,950
)

 (10.8
)%

 (5,501,475
)

 (4.7
)%

 (7,834,475
)

 142.4
 %

 General and administrative

 (35,381,496
)

 (28.6
)%

 (32,325,889
)

 (27.4
)%

 (3,055,607
)

 9.5
 %

 Impairment of goodwill

 (496,981
)

 (0.4
)%

 (642,665
)

 (0.5
)%

 145,684

 (22.7
)%

 Impairment of long-lived assets

 (942,591
)

 (0.8
)%

 (2,697,521
)

 (2.3
)%

 1,754,930

 (65.1
)%

 TOTAL OPERATING EXPENSE

 (54,422,194
)

 (44.0
)%

 (47,197,158
)

 (40.1
)%

 (7,225,036
)

 15.3
 %

 LOSS FROM OPERATIONS

 (13,052,171
)

 (10.6
)%

 (27,679,432
)

 (23.5
)%

 14,627,261

 (52.8
)%

 OTHER INCOME (EXPENSE):

 Interest income

 9,984,558

 8.1
 %

 6,427,502

 5.5
 %

 3,557,056

 55.3
 %

 Interest expense

 (1,327,341
)

 (1.1
)%

 (707,488
)

 (0.6
)%

 (619,853
)

 87.6
 %

 Change in fair value of contingent consideration

 1.5
 %

 4,196,995

 3.6
 %

 (2,393,995
)

 (57.0)
 %

 Government grants

 2,017,551

 1.6
 %

 1,639,328

 1.4
 %

 378,223

 23.1
 %

 Other income, net

 4,047,074

 3.3
 %

 2,784,561

 2.4
 %

 1,262,513

 45.3
 %

 TOTAL OTHER INCOME, NET

 16,524,842

 13.4
 %

 14,340,898

 12.2
 %

 2,183,944

 15.2
 %

 INCOME (LOSS) BEFORE INCOME TAXES

 3,472,671

 2.8
 %

 (13,338,534
)

 (11.3
)%

 16,811,205

 (126.0
)%

 INCOME TAX (EXPENSE) BENEFIT

 (1,802,904
)

 (1.5
)%

 487,510

 0.4
 %

 (2,290,414
)

 (469.8
)%

 NET INCOME (LOSS)

 1,669,767

 1.4
 %

 (12,851,024
)

 (10.9
)%

 14,520,791

 (113.0
)%

 Revenues

December 31, 2023, Zhejiang Kandi Technologies, its subsidiaries and SC Autosports had net revenues of $123,599,232 compared to net
revenues of $117,813,049 for the year ended December 31, 2022, representing an increase of $5,786,183, or 4.9%. The increase in revenue
was mainly due to the increase in the sales volume and increased margin of off-road vehicles and associated parts.

summarizes our net revenues by product types for the years ended December 31, 2023 and 2022:

 2023

 2022

 Sales

 Sales

 $

 $

 -

 Total

 $

 $

 EV Parts

ended December 31, 2023, Zhejiang Kandi Technologies, its subsidiaries and SC Autosports' revenue from the sale of EV parts
was $5,807,973, representing a decrease of $3,156,121 or 35.2% from $8,964,094 for the year ended December 31, 2022. The decrease was
primarily due to the reduced demand from the market during the year ended December 31, 2023. In addition, due to the large demand of off-road
vehicles from the US market, the Company has been focusing on the production of off-road vehicles, especially crossover golf carts, which
could bring in better profit margin.

Technologies, its subsidiaries and SC Autosports' EV parts business line accounted for approximately 4.7% of the total net
revenue for the year ended December 31, 2023.

 EV Products

ended December 31, 2023, Zhejiang Kandi Technologies, its subsidiaries and SC Autosports' revenue from the sale of EV Products
was $1,214,786, representing a decrease of $6,711,447 or 84.7% from $7,926,233 for the year ended December 31, 2022. The decrease was
primarily due to the reduced demand from the market during the year ended December 31, 2023. In addition, due to the large demand of off-road
vehicles from the US market, the Company has been focusing on the production of off-road vehicles, especially crossover golf carts, which
could bring in better profit margin.

Technologies, its subsidiaries and SC Autosports' EV Products business line accounted for approximately 1.0% of the total net
revenue for the year ended December 31, 2023.

 Off-Road Vehicles and Associated Parts

ended December 31, 2023, Zhejiang Kandi Technologies, its subsidiaries and SC Autosports' revenues from the sale of off-road
vehicles including go-karts, ATVs, and others, were $106,983,891, representing an increase of $36,361,613 or 51.5% from $70,622,278 for
the year ended December 31, 2022. The increase was because of the sales of our new model of crossover golf carts in US market during the
year ended December 31, 2023.

Technologies, its subsidiaries and SC Autosports' off-road vehicles business line accounted for approximately 86.6% of our
total net revenue for the year ended December 31, 2023.

 Electric Scooters, Electric Self-Balancing
Scooters and Associated Parts

ended December 31, 2023, Zhejiang Kandi Technologies and its subsidiaries' revenue from the sale of electric scooters and electric
self-balancing scooters and associated parts was $683,952, representing a decrease of $3,932,731 or 85.2% from $4,616,683 for the year
ended December 31, 2022. The decrease was primarily due to the fact that the Company has been focusing on the production of off-road vehicles,
especially crossover golf carts, which could bring in better profit margin due to the demand from the US market.

 Zhejiang Kandi Technologies and its subsidiaries'
electric scooters, electric self-balancing scooters and associated parts business line accounted for approximately 0.5% of the total net
revenue for the year ended December 31, 2023.

 Battery Exchange Equipment and Battery Exchange
Service

ended December 31, 2023, Zhejiang Kandi Technologies and its subsidiaries' revenue from the sale of battery exchange equipment and
battery exchange service was $674,927, representing a decrease of $1,016,559 or 60.1% from $1,691,486 for the same period of
2022.

Technologies and its subsidiaries' sale of battery exchange equipment and battery exchange service business line accounted for approximately
0.5% of the total net revenue for the year ended December 31, 2023.

ended December 31, 2023, Zhejiang Kandi Technologies and its subsidiaries' revenue from the sale of Lithium-ion cells was $7,994,227, representing
a decrease of $15,998,048 or 66.7% from $23,992,275 for the same period of 2022. The decrease was primarily due to less demand from
the market.

Technologies and its subsidiaries' Lithium-ion cell business line accounted for approximately 6.5% of the total net revenue for
the year ended December 31, 2023.

ended December 31, 2023, SC Autosports received commission income of $239,476, which was generated by NGI that was acquired on November
30, 2023, there was no such income for the same period of 2022.

 Such commission income accounted for approximately
0.2% of the total net revenue for the year ended December 31, 2023.

 The following table shows the breakdown
of our net revenues:

 2023

 2022

 Primary geographical markets

 U.S. and other countries/areas

 $
 93,979,363

 $
 65,871,112

 China

 29,619,869

 51,941,937

 Total

 $

 $

 Major products and Services

 $

 $

 -

 Total

 $

 $

 Timing of revenue recognition

 Products transferred at a point in time

 $
 123,359,756

 $

 Sales transactions completed at a point in time

 -

 Total

 $

 $

 Cost of Goods
Sold

 Cost of goods sold
for the year ended December 31, 2023 was $82,229,209, representing a decrease of $16,066,114, or 16.3%, from $98,295,323 for the year
ended December 31, 2022. The decrease was primarily due to the product mix with larger concentration of sales generated from the products
with higher gross margin. Please refer to the Gross Profit section below for product margin analysis.

 Gross Profit

 Our operating entities'
margins by product for the past two years are as set forth below:

 2023

 2022

 Sales

 Cost

 Gross
 Profit

 Margin
 %

 Sales

 Cost

 Gross
 Profit

 Margin
 %

 $

 5,477,843

 330,130

 5.7
 %

 $

 7,537,781

 1,426,313

 15.9
 %

 1,109,288

 105,498

 8.7
 %

 7,372,078

 554,155

 7.0
 %

 65,574,158

 41,409,733

 38.7
 %

 54,471,656

 16,150,622

 22.9
 %

 696,102

 (12,150
)

 -1.8
 %

 4,294,254

 322,429

 7.0
 %

 594,633

 80,294

 11.9
 %

 1,728,068

 -36,582

 -2.2
 %

 8,595,058

 (600,831
)

 -7.5
 %

 22,891,486

 1,100,789

 4.6
 %

 182,127

 57,349

 23.9
 %

 -

 -

 -

 -

 Total

 $

 82,229,209

 41,370,023

 33.5
 %

 $

 98,295,323

 16.6
 %

 Gross profit for
the year ended December 31, 2023 was $41,370,023, as compared to $19,517,726 for the year ended December 31, 2022, representing an increase
of $21,852,297 or 112.0%. This was primarily attributable to product mix with higher concentration to our off-road vehicles, especially
crossover golf carts, that brought us with significantly higher gross margin. Consequently, our gross margin increased to 33.5%, compared
to 16.6% for the same period of 2022.

 Research and
Development

 Research and development
expenses, including materials, labor, equipment depreciation, design, testing, inspection, and other related expenses totaled $4,265,176
for the year ended December 31, 2023, compared to $6,029,608 for the year ended December 31, 2022, representing a decrease of $1,764,432,
or 29.3%. The decrease was mainly due to fewer research and development projects being carried out in the current period.

 Sales and Marketing

 Selling and distribution
expenses were $13,335,950 for the year ended December 31, 2023, compared to $5,501,475 for the year ended December 31, 2022, representing
an increase of $7,834,475, or 142.4% from 2022. The increase was mainly due to higher commission offered for the sales of off-road vehicles,
as well as higher shipping and related expenses incurred due to larger volume of exports to the US market.

 General and
Administrative Expenses

 General and administrative expenses were $35,381,496 for the year ended
December 31, 2023, compared to $32,325,889 for the year ended December 31, 2022, representing an increase of $3,055,607 or 9.5% from 2022.
For the year ended December 31, 2023, general and administrative expenses included $11,059,801 as expenses for common stock awards and
stock options to employees and Board members, and for stock issuance to the consultant which the Company recruited pursuant to certain
consulting agreement dated May 25, 2023 ("Consultant Agreement"), compared to $1,926,376 for the years ended December 31 2022.
Excluding stock compensation expenses, our net general and administrative expenses for the year ended December 31, 2023 were $24,321,695,
a decrease of $6,077,818, or 20.0%, compared to $30,399,513 for the year ended December 31, 2022. The decrease compared to 2022 was largely
due to decrease of inventory obsolescence reserve.

 Interest Income

 Interest income was $9,984,558 for the year ended December 31,
2023, compared to $6,427,502 for the year ended December 31, 2022, representing an increase of $3,557,056, or 55.3% from 2022. The increase
was primarily attributable to the increased interest earned on increased certificate of deposit and notes receivable compared to the same
period in 2022.

 Interest Expense

 Interest expense
was $1,327,341 for the year ended December 31, 2023, compared to $707,488 for the year ended December 31, 2022, representing an increase
of $619,853, or 87.6% from 2022. The increase was primarily due to interest expenses related to increased short-term and long-term debt
of the Company compared to the same period in 2022.

 Change in fair
value of contingent consideration

December 31, 2023, the gain related to changes in the fair value of contingent consideration was $1,803,000 compared to the gain related
to changes in the fair value of contingent consideration of $4,196,995 for the year ended December 31, 2022, which was mainly due to the
adjustment of the fair value of the contingent consideration liability associated with remaining shares of restrictive common stock. (Please
refer to NOTE 19 – CONTINGENT CONSIDERATION LIABILITY). The fair value of the contingent consideration liability was estimated at
each reporting date by using the Monte Carlo simulation method, which took into account all possible scenarios.

 Government
Grants

 Government
grants totaled $2,017,551 for the year ended December 31, 2023, compared to $1,639,328 for the year ended December 31, 2022, representing
an increase of $378,223, or 23.1% from 2022, which was largely attributable to the increased grants received from Hainan local government
compare to the same period in 2022.

 Other
Income, Net

 Net other income was $4,047,074 for the year ended December 31, 2023,
compared to net other income of $2,784,561 for the year ended December 31, 2022, representing an increase of $1,262,513 or 45.3% from
2022, which was largely due to an income generated from the research service project the Company provided to a third party customer during
the year ended December 31, 2023.

 Income
Taxes

 In
accordance with the relevant Chinese tax laws and regulations, the applicable corporate income tax rate of our Chinese subsidiaries
is 25%. However, four of our subsidiaries, including Zhejiang Kandi Technologies, Kandi Smart Battery Swap, Kandi Hainan and Jiangxi
Huiyi are qualified as high technology companies in China and are therefore entitled to a reduced corporate income tax rate of 15%. Additionally,
Hainan Kandi Holding also has an income tax rate of 15% due to its local preferred tax rate in Hainan Free Trade Port.

 Each
of our other subsidiaries, Kandi New Energy, Yongkang Scrou, China Battery Exchange and its subsidiaries has an applicable corporate
income tax rate of 25%.

 Our actual effective income tax rate for 2023 was a tax expense of
51.92% on a reported income before taxes of approximately $3.5 million, compared to a tax benefit of 3.65% on a reported loss before taxes
of approximately $13.3 million for 2022.

 Net
Income (Loss)

 We recorded net income of $1,669,767 for the year ended December 31,
2023, compared to net loss of $12,851,024 for the year ended December 31, 2022. The increase of net income was primarily attributable
to the increase in gross profit resulted from a higher concentration of sales from off-road vehicles with larger gross margin.

 LIQUIDITY
AND CAPITAL RESOURCES

 Cash
Flow

 Years Ended

 2023

 2022

 Net cash (used in) provided by operating activities

 $
 (101,160,636
)

 $
 31,478,911

 Net cash provided by (used in) investing activities

 $
 32,278,828

 $
 (35,031,115
)

 Net cash provided by (used in) financing activities

 $
 14,828,688

 $
 (4,333,088
)

 NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

 $
 (54,053,120
)

 $
 (7,885,292
)

 Effect of exchange rate changes

 $
 (3,357,083
)

 $
 (9,750,444
)

 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR

 $
 151,040,271

 $
 168,676,007

 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

 $
 93,630,068

 $
 151,040,271

 For the year ended December 31, 2023, net cash used in operating activities
was $101,160,636, as compared to cash provided by operating activities was $31,478,911 for the year ended December 31, 2022. Our operating
cash inflows include cash received primarily from sales of our EV parts, off-road vehicles, electric Scooters, electric self-balancing
scooters and associated parts and lithium-ion cells. These cash inflows are offset largely by cash paid primarily to our suppliers for
production materials and parts used in our manufacturing process, operation expenses, employee compensation, and interest expenses of
our financings. The major operating activities that provided cash for the year ended December 31, 2023 were an increase of accounts payable
of $38,603,301. The major operating activity that used cash for year ended December 31, 2023 was an increase of notes receivable of $123,992,862.

 For the year ended December 31, 2023, net cash provided by investing
activities was $32,278,828, as compared to cash used in investing activities of $35,031,115 for the year ended December 31, 2022. The
major investing activities that provided cash for the year ended December 31, 2023 were a decrease of certificate of deposit of $45,244,390.
The major investing activities that used cash for the year ended December 31, 2023 were an increase of purchases of property, plant and
equipment of $13,172,512.

 For the year ended December 31, 2023, net cash provided by financing
activities was $14,828,688, as compared to cash used in financing activities of $4,333,088 for the year ended December 31, 2022. The major
financing activities that provided cash for the year ended December 31, 2023 were proceeds from short-term bank loans of $23,420,534.
The major financing activities that used cash for year ended December 31, 2023 were repayments of short-term loans of $19,709,663.

 Working
Capital

 We had working capital of $266,874,509 as of December 31, 2023,
which reflects an increase of $19,057,384 from a working capital of $247,817,125 as of December 31, 2022.

 Contractual
Obligations and Off-balance Sheet Arrangements

 Guarantees
and pledged collateral for third party bank loans

 For
the discussion of guarantees for bank loans, please refer to Note 23 - COMMITMENTS AND CONTINGENCIES under Item 8 Notes to Consolidated
Financial Statements.

 Critical
Accounting Policies and Related Estimates That Could Have a Material Effect on Our Consolidated Financial Statements

 This
section should be read together with the Summary of Significant Accounting Policies in the attached consolidated financial statements
included in this Annual Report.

 Estimates
affecting accounts receivable and inventories

 The
preparation of our consolidated financial statements requires management to make estimates and assumptions that affect our reporting
of assets and liabilities (and contingent assets and liabilities). These estimates are particularly significant where they affect the
reported net realizable value of our accounts receivable and inventories.

 Accounts
receivable are recognized and carried at net realizable value. An allowance for doubtful accounts is recorded for periods in which the
Company determines a loss is probable, based on its assessment of specific factors, such as troubled collections, historical experience,
accounts aging, ongoing business relations and other factors. Accounts are written off after exhaustive collection efforts. If accounts
receivable are to be provided for, or written off, they are recognized in the consolidated statement of operations within the operating
expenses line item. If accounts receivable previously written off is recovered in a later period or when facts subsequently become available
to indicate that the amount provided as an allowance for doubtful accounts was incorrect, an adjustment is made to restate allowance
for doubtful accounts.

 As
of December 31, 2023 and December 31, 2022, credit terms with the Company's customers were typically 60 to 180 days after delivery.
As of December 31, 2023 and 2022, the Company had a $2,886,223 and $2,285,386 allowance for doubtful accounts, as per the Company management's
judgment based on their best knowledge. The Company conducts quarterly assessments of the state of the Company's outstanding receivables
and reserves any allowance for doubtful accounts if it becomes necessary.

 Inventories
are stated at the lower of cost or net realizable value (market value). The cost of raw materials is determined on the basis of weighted
average. The cost of finished goods is determined on the basis of weighted average and comprises direct materials, direct labor and an
appropriate proportion of overhead. Net realizable value is based on estimated selling prices less selling expenses and any further costs
expected to be incurred for completion. Adjustments to reduce the cost of inventory to net realizable value are made, if required, for
estimated excess, obsolescence, or impaired balances.

 Although
we believe that there is little likelihood that actual results will differ materially from our current estimates, if customer demands
for our products decreases significantly in the near future, or if the financial condition of our customers deteriorates in the near
future, we could realize significant write downs for slow-moving inventories or uncollectible accounts receivable.

 Policy affecting recognition of revenue

 Our
revenue recognition policy plays a key role in our consolidated financial statements.

 The
Company adopted ASC Topic 606 Revenue from Contracts with Customers with a date of the initial application of January 1, 2018 using the
modified retrospective method. The impact of the adoption of ASC Topic 606 on the Company's consolidated financial statements is
not material.

 The
Company recognizes revenue when goods or services are transferred to customers in an amount that reflects the consideration which it
expects to receive in exchange for those goods or services. In determining when and how revenue is recognized from contracts with customers,
the Company performs the following five-step analysis: (i) identification of contract with customer (ii) determination of performance
obligations (iii) measurement of the transaction price (iv) allocation of the transaction price to the performance obligations
and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

 The Company generates revenue through the sales of EV parts and off-road
vehicles, as well as commission income. The revenue is recognized at a point in time once the Company has determined that the customer
has obtained control over the product, or the control of the promised services. Control is typically deemed to have been transferred to
the customer when the performance obligation is fulfilled, usually at the time of delivery, at the net sales price (transaction price).
Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Shipping
and handling costs for product shipments occur prior to the customer obtaining control of the goods are accounted for as fulfillment costs
rather than separate performance obligations and recorded as sales and marketing expenses.

 Estimate
affecting impairment of long-lived assets

 The Company periodically evaluates the carrying
value of long-lived assets to be held and used, including intangible assets subject to amortization, when events and circumstances warrant
such a review, pursuant to the guidelines established in Statement of Financial Accounting Standards ("SFAS") No. 144 (now
known as "ASC 360"). The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash
flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the
amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using
the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are
determined in a similar manner, except that fair market values are reduced for disposal costs.

 The
Company recognized impairment loss of $942,591 and $2,697,521 for finite-lived intangible assets as of December 31, 2023 and December
31, 2022, respectively.

 Estimate
affecting impairment of goodwill

 The
Company allocates goodwill from business combinations to reporting units based on the expectation that the reporting unit is to benefit
from the business combination. The Company evaluates its reporting units on an annual basis and, if necessary, reassigns goodwill using
a relative fair value allocation approach. Goodwill is tested for impairment at the reporting unit level on an annual basis and between
annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below
its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating
performance indicators, competition, or sale or disposition of a significant portion of a reporting unit.

 Application
of the goodwill impairment test requires judgments, including the identification of reporting units, assignment of assets and liabilities
to reporting units, assignment of goodwill to reporting units, and the determination of the fair value of each reporting unit. The Company
first assesses qualitative factors to determine whether it is more likely than not that goodwill is impaired. If the more likely than
not threshold is met, the Company performs a quantitative impairment test.

 The
Company applies the reporting unit criteria in ASC 350-20 to the components to determine if the reporting unit should be identified one
level below the operating segment. Each component will be evaluated to determine if: (a) it is a business (as defined in ASC 805), (b)
discrete financial information is available and (c) the operating results are regularly reviewed by the segment manager(s). If the components
of a specific operating segment meet these criteria, they might be deemed to be separate reporting units. However, if they have similar
economic characteristics (which is a matter of judgment based on individual facts and circumstances), these components must be aggregated
into one reporting unit. There are three reporting units under the goodwill impairment analysis, namely 1) SC Autosports, 2) Jinhua An
Kao and Yongkang Scrou, and 3) Jiangxi Huiyi.

 As of December 31, 2023 and 2022, the Company performed goodwill impairment
testing at the reporting unit level and recognized impairment loss of $496,981 and $642,665, respectively.

 Estimate
affecting contingent consideration liability

 The Company recorded contingent consideration liability of the estimated
fair value of the contingent consideration the Company currently expects to pay to the Jiangxi Huiyi and NGI's 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 Operations and Comprehensive Income
(Loss).

 As of December 31, 2023 and December 31, 2022, the Company's
contingent consideration liability was $2,693,000 and $1,803,000, respectively.

 Policy affecting options, warrants and convertible notes

 Our
stock option cost is recorded in accordance with ASC 718 and ASC 505. The fair value of stock options is estimated using the Binomial
Tree Model. Our expected volatility assumption is based on the historical volatility of our stock. The expected life assumption is primarily
based on the expiration date of the option. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury
yield curve in effect at the time of grant. Stock option expense recognition is based on awards expected to vest. There were no estimated
forfeitures. ASC standards require forfeitures to be estimated at the time of grant and revised in subsequent periods, if necessary,
if actual forfeitures differ from those estimates.

 The
stock-based option expenses for the years ended December 31, 2023 and 2022 were $3,476,058 and $1,231,566, respectively. There were no
forfeitures estimated during the reporting period.

 Our
warrant costs are recorded in liabilities and equities, respectively, in accordance with ASC 480, ASC 505 and ASC 815. The fair value
of a warrant, which is classified as a liability, is estimated using the Binomial Tree model and the lattice valuation model. Our expected
volatility assumption is based on the historical volatility of our common stock. The expected life assumption is primarily based on the
expiration date of the warrant. The risk-free interest rate for the expected term of the warrant is based on the U.S. Treasury yield
curve in effect at the time of measurement. Our warrants, which are freestanding derivatives classified as liabilities on the balance
sheet, are measured at fair value on each reporting date, with decreases in fair value recognized in earnings and increases in fair values
recognized in expenses.

 The
fair value of equity-based warrants, which is not considered derivatives under ASC 815, is estimated using the Binomial Tree model. Our
expected volatility assumption is based on the historical volatility of our common stock. The expected life assumption is primarily based
on the expiration date of the warrant. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury
yield curve in effect at the time of grant.

 In
accordance with ASC 815, the conversion feature of the convertible notes is separated from the debt instrument and accounted for separately
as a derivative instrument. On the date the convertible notes are issued, the conversion feature is recorded as a liability at its fair
value, and future decreases in fair value are recognized in earnings while increases in fair values are recognized in expenses. We used
the Binomial Tree option-pricing model to obtain the fair value of the conversion feature. The expected volatility assumption is based
on the historical volatility of our common stock. The expected life assumption is primarily based on the expiration date of the conversion
features. The risk-free interest rate for the expected term of the conversion features is based on the U.S. Treasury yield curve in effect
at the time of measurement.

 U.S.
Corporate Income Tax

 Based
on Financial Accounting Standards Board ("FASB") staff Q&A Topic 740, No. 5, Accounting for Global Intangible Low-Taxed
Income (GILTI), the FASB staff noted that the Company must make an accounting policy election to either (1) recognize taxes due on future
U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the "period cost method") or
(2) factor such amount into the Company's measure of its deferred taxes (the "deferred method"). The Company elected
to treat GILTI as a current-period expense when incurred.

 Item
7A. Quantitative and Qualitative Disclosures About Market Risk.

 This
item is not applicable to us.

 Item 8. Financial
Statements and Supplementary Data.

 KANDI
TECHNOLOGIES GROUP, INC.

 AND
SUBSIDIARIES

FINANCIAL STATEMENTS

 FOR
THE YEARS ENDED

 DECEMBER
31, 2023 AND 2022

 KANDI

 CONTENTS

 REPORT
 OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - ARK Pro CPA & Co

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM – Kreit & Chiu CPA LLP

 BALANCE SHEETS AS OF DECEMBER 31, 2023 AND 2022

 STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

 STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

 STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

 NOTES
 TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

 F- 1

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM

 To: Board of Directors and Shareholders

 Kandi Technologies Group, Inc.

 Opinions on the Financial Statements and Internal Control Over Financial
Reporting

 We have audited the accompanying
consolidated balance sheets of Kandi Technologies Group, Inc. (the "Company") as of December 31, 2023, and the related
consolidated statements of operations and comprehensive income, changes in stockholders' equity, and cash flows for the year
ended December 31, 2023, and the related notes (collectively referred to as the "financial statements"). We also have
audited the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal
Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO).

 In our opinion, the financial statements referred
to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023, and the results of its
operations and its cash flows for the year ended December 31, 2023, in conformity with accounting principles generally accepted in the
United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial
reporting as of December 31, 2023, based on criteria established in Internal Control—Integrated Framework (2013) issued by
COSO.

 Basis for Opinion

 The Company's management is responsible
for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness
of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control Over Financial
Reporting. Our responsibility is to express an opinion on the Company's financial statements and an opinion on the Company's
internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with
the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting
was maintained in all material respects.

 F- 2

 Our audits of the financial statements included
performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing
procedures that responds to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management,
as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included
obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing
such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

 Definition and Limitations of Internal Control
Over Financial Reporting

 A company's internal control over financial
reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control
over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and
that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition
of the company's assets that could have a material effect on the financial statements.

 Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.

 Critical Audit Matters

 The critical audit matters communicated below
are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to
the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our
especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion
on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions
on the critical audit matters or on the accounts or disclosures to which they relate.

 Valuation of Goodwill and Intangible Assets

 Critical Audit Matter Description

 As of December 31, 2023, the Company had $33,146,682
of Goodwill and $6,395,825 of Intangible Assets. As discussed in Notes 5 and 6, management assesses Goodwill and Intangible Assets for
impairment. Estimating fair values in connection with these impairment evaluations involves the use of forecasted revenues, expenses,
and capital expenditures. The Company identified impairment of Goodwill of $496,981 and Intangible Assets impairment of $942,591, both
related to Jiangxi Province Huiyi New Energy Co., Ltd ("Jiangxi Huiyi"), a subsidiary of the Company.

 F- 3

 How the Critical Audit Matter was Addressed
in the Audit

 Our procedures related to the impairment of Goodwill
and Intangible Assets at Jiangxi Huiyi include the following: (1) Tested the effectiveness of internal controls over the impairment analysis
including the internal controls over the development of assumptions used in the valuation of Goodwill and Intangible Assets. (2) Tested
management's process of evaluating the appropriateness of the valuation models used to value the Goodwill and Intangible Assets.
(3) Assessed qualitative factors relevant to the Company in order to determine if contradictory evidence exists.

 Valuation of inventory

 Critical Audit Matter Description

 The Company
values inventory using the lower of cost or net realizable value. Net realizable value is generally based
on the selling price expectations of the merchandise. The Company regularly reviews inventory to determine if the carrying value
of the inventory exceeds net realizable value and when determined necessary, records a reserve to reduce the carrying value
to net realizable value. As of December 31, 2023, the Company's inventories amounted to $61,551,268, net of reserves for slow-moving
or potential obsolescence of $8,544,926.

 We identified
the inventory valuation as a critical audit matter because of the extent of audit judgment and effort required to
evaluate management's estimates.

 How the Critical Audit Matter was Addressed
in the Audit

 Our procedures related to the inventory valuation include the following: (1) Tested the effectiveness of internal controls over management's
inventory valuation method, including those over management's development and approval of product cycles (2) Evaluated the appropriateness
of management's methods used in developing their estimate of the inventory valuation. (3) Evaluated the appropriateness of inputs
supporting management's estimate of inventory cost. We also agreed the data back to source information including third party vendor
invoices (4) Evaluated management's calculation of the inventory cost by testing the mathematical accuracy.

 F- 4

 Valuation of Contingent Consideration Liability

 Critical Audit Matter

 As stated in Note 25,
the Company completed to acquire 100% of the equity interest of Northern Group Inc. ("NGI") in November 2023. The Company
had issued a total of 3,951,368 restricted shares and had the contingent obligation to release such escrow restriction upon the achievement
of certain agreed-upon milestones over the agreed escrow period, to be released at three milestone dates. The contingent consideration
liability was valued at $2,693,000 as of December 31, 2023.

 Key inputs to the valuation
of the contingent consideration liability include estimates of future revenue and expenses of NGI and estimates of the future stock price
of the Company. The valuation of the contingent consideration liability is established by external valuation specialists using the inputs
noted above and valuation methods followed in the valuation industry. While the Company used best estimates and engaged an external valuation
specialist, the Company's estimates are inherently uncertain and include significant judgment.

 How the Critical Audit
Matter was Addressed in the Audit

 Our procedures related to the valuation of the
contingent consideration liability related to the NGI acquisition include the following: (1) Tested the effectiveness of internal controls
over the valuation of contingent consideration liability including the internal controls over the development of assumptions used in the
valuation of the contingent consideration liability. (2) Tested management's process of evaluating the appropriateness of the valuation
models used to value the contingent consideration liability. (3) Used an independent valuation specialist to test valuation assumptions
and methodology. (4) Assessed qualitative factors relevant to the Company in order to determine if contradictory evidence exists.

 /s/ ARK Pro CPA & Co

 ARK Pro CPA & Co

 (Formerly HKCM CPA & Co.)

 We have served as the Company's auditor since 2023.

 Hong Kong, China

 March 14, 2024

 PCAOB Firm ID: 3299

 F- 5

 REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 Board
of Directors and Shareholders

 Kandi
Technologies Group, Inc.

 Opinions
on the Financial Statements and Internal Control Over Financial Reporting

 We
have audited the accompanying consolidated balance sheets of Kandi Technologies Group, Inc. as of December 31, 2022, and the related
consolidated statements of operations and comprehensive income, changes in stockholders' equity, and cash flows for the year ended
December 31, 2022, and the related notes (collectively referred to as the "financial statements"). We also have audited Kandi
Technologies Group, Inc.'s internal control over financial reporting as of December 31, 2022, based on criteria established in
2013 Internal Control—Integrated Framework issued by the "Committee of Sponsoring Organizations of the Treadway Commission".

 In
our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Kandi Technologies
Group, Inc. as of December 31, 2022, and the results of its operations and its cash flows for the year ended December 31, 2022, in conformity
with accounting principles generally accepted in the United States of America. Also in our opinion, Kandi Technologies Group, Inc. maintained,
in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established
in 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

 Basis
for Opinion

 Kandi
Technologies Group, Inc.'s management is responsible for these financial statements, for maintaining effective internal control
over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying
Management's Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the entity's
financial statements and an opinion on the entity's internal control over financial reporting based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required
to be independent with respect to Kandi Technologies Group, Inc. in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether
effective internal control over financial reporting was maintained in all material respects.

 Our
audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements,
whether due to error or fraud, and performing procedures that responds to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control
based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances.
We believe that our audits provide a reasonable basis for our opinions.

 Definition
and Limitations of Internal Control Over Financial Reporting

 An
entity's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally
accepted in the United States of America. An entity's internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the entity; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures
of the entity are being made only in accordance with authorizations of management and directors of the entity; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the entity's assets that
could have a material effect on the financial statements.

 F- 6

 Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.

 Critical
Audit Matters

 The
critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated
or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial
statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters
does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit
matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

 Valuation
of Goodwill and Intangible Assets

 Critical
Audit Matter Description

 As
of December 31, 2022, the Company had $33,178,229 of Goodwill and $7,994,112 of Intangible Assets. As discussed in Notes 5 and 6, management
assesses Goodwill and Intangible Assets for impairment. Estimating fair values in connection with these impairment evaluations involves
the use of forecasted revenues, expenses, and capital expenditures. While the Company did engage an external valuation specialist, the
valuation process is still highly subjective.

 Through
this impairment assessment the Company identified impairment of Goodwill of $642,665 and Intangible Assets impairment of $2,697,521,
both related to the Jiangxi Huiyi subsidiary.

 How
the Critical Audit Matter was Addressed in the Audit

 Our
procedures related to the impairment of Goodwill and Intangible Assets at Jiangxi Huiyi include the following: (1) Tested the effectiveness
of internal controls over the impairment analysis including the internal controls over the development of assumptions used in the valuation
of Goodwill and Intangible Assets. (2) Tested management's process of evaluating the appropriateness of the valuation models used
to value the Goodwill and Intangible Assets. (3) Used an independent valuation specialist to test valuation assumptions and methodology.
(4) Assessed qualitative factors relevant to the Company in order to determine if contradictory evidence exists.

 Valuation
of Contingent Consideration Liability

 Critical
Audit Matter Description

 As
stated in Note 18, the Company acquired 100% of the equity of Jiangxi Huiyi in October 2021. In addition to cash, the Company had the
contingent obligation to pay up to 2,576,310 shares of its common stock over the following three-year period, payable at three milestone
dates. The contingent consideration liability was valued at $1,803,000 as of December 31, 2022.

 Key
inputs to the valuation of the contingent consideration liability include estimates of future revenue and expenses of Jiangxi Huiyi and
estimates of the future stock price of the Company. The valuation of the contingent consideration liability is established by external
valuation specialists using the inputs noted above and valuation methods followed in the valuation industry. While the Company used best
estimates and engaged an external valuation specialist, the Company's estimates are inherently uncertain and include significant
judgment.

 F- 7

 How
the Critical Audit Matter was Addressed in the Audit

 Our
procedures related to the valuation of the contingent consideration liability related to the Jiangxi Huiyi acquisition include the following:
(1) We tested the effectiveness of internal controls over the valuation of contingent consideration liability including the internal
controls over the development of assumptions used in the valuation of the contingent consideration liability. (2) Tested management's
process of evaluating the appropriateness of the valuation models used to value the contingent consideration liability. (3) Used an independent
valuation specialist to test valuation assumptions and methodology. (4) Assessed qualitative factors relevant to the Company in order
to determine if contradictory evidence exists.

 /s/ Kreit & Chiu CPA LLP

 (Formerly Paris, Kreit & Chiu CPA LLP)

 We
have served as Kandi Technologies Group, Inc.'s auditor since 2021. In 2023, we became the predecessor auditor.

 Los
Angeles, California

 March
16, 2023

 PCAOB
Firm ID: 6651

 F- 8

 KANDI

BALANCE SHEETS

 2023

 2022

 CURRENT ASSETS

 Cash and cash equivalents

 $
 33,756,941

 $

 Restricted cash

 59,873,127

 66,976,554

 Certificate of deposit

 33,947,212

 81,191,191

 Accounts receivable (net of allowance for doubtful accounts of $ 2,886,223 and $ 2,285,386 as of December 31, 2023 and December 31, 2022, respectively)

 18,951,745

 38,150,876

 Inventories

 61,551,268

 40,475,366

 Notes receivable

 124,473,111

 434,461

 Other receivables

 6,476,542

 11,912,615

 Prepayments and prepaid expense

 1,909,094

 2,970,261

 Advances to suppliers

 2,609,098

 3,147,932

 TOTAL CURRENT ASSETS

 343,548,138

 NON-CURRENT ASSETS

 Property, plant and equipment, net

 98,803,772

 97,168,753

 Intangible assets, net

 6,395,825

 7,994,112

 Land use rights, net

 2,754,442

 2,909,950

 Construction in progress

 -

 199,837

 Deferred tax assets

 814,610

 1,432,527

 Long-term investment

 -

 144,984

 Goodwill

 33,146,682

 33,178,229

 Other long-term assets

 9,993,130

 10,630,911

 TOTAL NON-CURRENT ASSETS

 151,908,461

 TOTAL ASSETS

 $
 495,456,599

 $
 482,982,276

 CURRENT LIABILITIES

 Accounts payable

 $
 28,744,854

 $
 35,321,262

 Other payables and accrued expenses

 7,252,814

 14,131,414

 Short-term loans

 9,072,336

 5,569,154

 Notes payable

 24,071,461

 19,123,476

 Income tax payable

 2,130,083

 1,270,617

 Other current liabilities

 5,402,081

 6,089,925

 TOTAL CURRENT LIABILITIES

 76,673,629

 NON-CURRENT LIABILITIES

 Long-term loans

 8,389,163

 -

 Deferred taxes liability

 963,691

 1,378,372

 Contingent consideration liability

 Other long-term liabilities

 227,024

 602,085

 TOTAL NON-CURRENT LIABILITIES

 12,272,878

 TOTAL LIABILITIES

 88,946,507

 85,289,305

 STOCKHOLDER'S EQUITY

 Common stock, $ 0.001 par value; 100,000,000 shares authorized; 87,532,800 and 77,668,730 shares issued and 87,348,234 and 74,180,171 outstanding at December 31,2023 and December 31,2022, respectively

 87,533

 77,669

 Less: Treasury stock ( 184,566 shares with average price of $ 2.75 and 3,488,559 shares with average price of $ 2.81 at December 31, 2023 and December 31, 2022, respectively)

 ( 507,013
)

 ( 9,807,820
)

 Additional paid-in capital

 457,847,155

 451,373,645

 Accumulated deficit (the restricted portion is $ 4,422,033 and $ 4,422,033 at December 31, 2023 and December 31, 2022, respectively)

 ( 16,332,633
)

 ( 16,339,765
)

 Accumulated other comprehensive
 loss

 ( 36,970,066
)

 ( 28,333,239
)

 TOTAL KANDI TECHNOLOGIES GROUP,
 INC. STOCKHOLDERS' EQUITY

 404,124,976

 396,970,490

 Non-controlling interests

 2,385,116

 722,481

 TOTAL STOCKHOLDERS' EQUITY

 406,510,092

 TOTAL LIABILITIES AND STOCKHOLDERS'
 EQUITY

 $
 495,456,599

 $
 482,982,276

 See
notes to consolidated financial statements.

 F- 9

 KANDI

STATEMENTS OF OPERATIONS AND

 COMPREHENSIVE
INCOME (LOSS)

 FOR
THE YEARS ENDED DECEMBER 31, 2023 AND 2022

 Years Ended

 December 31, 2023

 December 31, 2022

 REVENUES, NET

 $

 $

 COST OF GOODS SOLD

 ( 82,229,209
)

 ( 98,295,323
)

 GROSS PROFIT

 41,370,023

 OPERATING EXPENSE:

 Research and development

 ( 4,265,176
)

 ( 6,029,608
)

 Selling and marketing

 ( 13,335,950
)

 ( 5,501,475
)

 General and administrative

 ( 35,381,496
)

 ( 32,325,889
)

 Impairment of goodwill

 ( 496,981
)

 ( 642,665
)

 Impairment of long-lived assets

 ( 942,591
)

 ( 2,697,521
)

 TOTAL OPERATING EXPENSE

 ( 54,422,194
)

 ( 47,197,158
)

 LOSS FROM OPERATIONS

 ( 13,052,171
)

 ( 27,679,432
)

 OTHER INCOME (EXPENSE):

 Interest income

 9,984,558

 6,427,502

 Interest expense

 ( 1,327,341
)

 ( 707,488
)

 Change in fair value of contingent consideration

 4,196,995

 Government grants

 2,017,551

 1,639,328

 Other income, net

 4,047,074

 2,784,561

 TOTAL OTHER INCOME, NET

 16,524,842

 14,340,898

 INCOME (LOSS) BEFORE INCOME TAXES

 3,472,671

 ( 13,338,534
)

 INCOME TAX (EXPENSE) BENEFIT

 ( 1,802,904
)

 487,510

 NET INCOME (LOSS)

 1,669,767

)

 LESS: NET INCOME (LOSS) ATTRIBUTABLE
 TO NON-CONTROLLING INTERESTS

 1,662,635

 ( 727,361
)

 NET INCOME (LOSS) ATTRIBUTABLE
 TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS

 7,132

 ( 12,123,663
)

 OTHER COMPREHENSIVE LOSS

 Foreign currency translation adjustment

 ( 8,636,827
)

 ( 28,585,025
)

 COMPREHENSIVE LOSS

 $
 ( 6,967,060
)

 $
 ( 41,436,049
)

 WEIGHTED AVERAGE SHARES OUTSTANDING BASIC

 78,781,094

 75,571,702

 WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED

 79,902,891

 75,571,702

 NET INCOME (LOSS) PER SHARE, BASIC

 $
 0.02

 $
 ( 0.17
)

 NET INCOME (LOSS) PER SHARE, DILUTED

 $
 0.02

 $
 ( 0.17
)

 See
notes to consolidated financial statements.

 F- 10

 KANDI

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

 FOR
THE YEARS ENDED DECEMBER 31, 2023 AND 2022

 Outstanding

 Shares

 Common

 Stock

 Treasury

 Stock

 Additional

 Paid-in

 Capital

 Accumulated

 Deficit

 Accumulated

 Other

 Comprehensive

 Income

 (Loss

 Non-

controlling

 interests

 Total

 BALANCE AS OF

 DECEMBER 31, 2021

 77,385,130

 $
 77,385

 $
 ( 2,392,203
)

 $
 449,479,461

 $
 ( 4,216,102
)

 $
 251,786

 $
 -

 $
 443,200,327

 Stock issuance and award

 283,600

 -

 746,636

 -

 -

 -

 746,920

 Stock based compensation

 -

 -

 -

 1,231,566

 -

 -

 -

 1,231,566

 Stock buyback

 -

 -

 ( 7,415,617
)

 ( 84,018
)

 -

 -

 -

 ( 7,499,635
)

 Capital contribution from shareholder

 -

 -

 -

 -

 -

 -

 1,449,842

 1,449,842

 Net loss

 -

 -

 -

 -

 ( 12,123,663
)

 -

 ( 727,361
)

)

 Foreign currency translation

 -

 -

 -

 -

 -

 ( 28,585,025
)

 -

 ( 28,585,025
)

 BALANCE AS OF

 DECEMBER 31, 2022

 77,668,730

 $
 77,669

 $
 ( 9,807,820
)

 $
 451,373,645

 $
 ( 16,339,765
)

 $
 ( 28,333,239
)

 $
 722,481

 $

 Stock issuance and award

 11,685,968

 11,686

 -

 9,357,192

 -

 -

 -

 9,368,878

 Stock based compensation

 -

 -

 -

 3,476,058

 -

 -

 -

 3,476,058

 Stock buyback

 -

 -

 ( 507,013
)

 ( 3,731
)

 -

 -

 -

 ( 510,744
)

 Cancellation of the Treasury Stock

 ( 3,488,559
)

 ( 3,489
)

 9,807,820

 ( 9,804,331
)

 -

 -

 -

 -

 Stock option exercise

 1,666,661

 1,667

 -

 3,448,322

 -

 -

 -

 3,449,989

 Net income

 -

 -

 -

 -

 7,132

 -

 1,662,635

 1,669,767

 Foreign currency translation

 -

 -

 -

 -

 -

 ( 8,636,827
)

 -

 ( 8,636,827
)

 BALANCE AS OF

 DECEMBER 31, 2023

 87,532,800

 $
 87,533

 $
 ( 507,013
)

 $
 457,847,155

 $
 ( 16,332,633
)

 $
 ( 36,970,066
)

 $
 2,385,116

 $
 406,510,092

 See
notes to consolidated financial statements.

 F- 11

 KANDI

STATEMENTS OF CASH FLOWS

 FOR
THE YEARS ENDED DECEMBER 31, 2023 AND 2022

 Years Ended

 December
 31, 2023

 December
 31, 2022

 CASH FLOWS FROM OPERATING
 ACTIVITIES:

 Net income (loss)

 $
 1,669,767

 $
)

 Adjustments to reconcile net
 (loss) income to net cash provided by operating activities

 Depreciation and amortization

 11,913,647

 12,427,973

 Impairments

 1,439,573

 3,340,186

 Provision of allowance for
 doubtful accounts

 656,330

 ( 542,801
)

 Deferred taxes

 203,236

 ( 461,045
)

 Loss from long-term Investment

 141,389

 -

 Change in fair value of contingent
 consideration

 ( 1,803,000
)

 ( 4,196,995
)

 Stock award and stock based
 compensation expense

 11,059,801

 1,926,376

 Changes in operating assets
 and liabilities:

 Accounts receivable

 10,560,521

 ( 20,965,140
)

 Notes receivable

 ( 123,992,862
)

 4,726,570

 Inventories

 ( 21,531,323
)

 ( 9,145,298
)

 Other receivables and other
 assets

 5,165,337

 ( 4,932,463
)

 Advances to supplier and prepayments
 and prepaid expenses

 1,491,762

 16,275,678

 Increase (Decrease) In:

 Accounts payable

 38,603,301

 62,592,477

 Other payables and accrued
 liabilities

 ( 5,062,494
)

 7,842,715

 Notes payable

 ( 32,629,627
)

 ( 24,533,127
)

 Income
 tax payable

 954,006

 ( 25,171
)

 Net
 cash (used in) provided by operating activities

 $
 ( 101,160,636
)

 $
 31,478,911

 CASH FLOWS FROM INVESTING
 ACTIVITIES:

 Purchases of property, plant
 and equipment, net

 ( 13,172,512
)

 ( 3,690,235
)

 Payment for construction in
 progress

 ( 75,185
)

 ( 129,894
)

 Certificate of deposit

 45,244,390

 ( 31,210,986
)

 Acquisition
 of NGI

 282,135

 -

 Net
 cash provided by (used in) investing activities

 $
 32,278,828

 $
 ( 35,031,115
)

 CASH FLOWS FROM FINANCING
 ACTIVITIES:

 Proceeds from short-term loans

 23,420,534

 30,765,776

 Repayments of short-term loans

 ( 19,709,663
)

 ( 28,357,211
)

 Repayments of long-term loans

 ( 46,426
)

 -

 Proceeds from long-term loans

 8,225,000

 -

 Contribution from non-controlling
 shareholder

 -

 757,981

 Purchase of treasury stock

 ( 510,745
)

 ( 7,499,634
)

 Proceeds
 from exercises stock options, stock awards and other financing

 3,449,988

 -

 Net
 cash provided by (used in) financing activities

 $
 14,828,688

 $
 ( 4,333,088
)

 NET
 DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

 $
 ( 54,053,120
)

 $
 ( 7,885,292
)

 Effect
 of exchange rate changes

 $
 ( 3,357,083
)

 $
 ( 9,750,444
)

 CASH AND CASH EQUIVALENTS
 AND RESTRICTED CASH AT BEGINNING OF YEAR

 $
 151,040,271

 $
 168,676,007

 CASH
 AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

 $
 93,630,068

 $
 151,040,271

 -CASH AND CASH EQUIVALENTS
 AT END OF PERIOD

 33,756,941

 -RESTRICTED CASH AT END OF
 PERIOD

 59,873,127

 66,976,554

 SUPPLEMENTARY CASH FLOW
 INFORMATION

 Income taxes paid

 $
 311,504

 $
 350,002

 Interest paid

 $
 965,025

 $
 345,451

 SUPPLEMENTAL NON-CASH DISCLOSURES:

 Contribution from non-controlling
 shareholder by inventories, fixed assets and intangible assets

 $
 -

 $
 393,986

 Common stock issued for settlement
 of payables related to acquisitions (see Note 19)

 $
 1,812,005

 $
 -

 See
notes to consolidated financial statements.

 F- 12

 KANDI

 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

 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, 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", d/b/a Kandi America) and its wholly-owned subsidiary, Kandi America Investment, LLC
("Kandi Investment"). In March 2021, Zhejiang Kandi Vehicles Co., Ltd. changed its name to Zhejiang Kandi Technologies Group
Co., Ltd. ("Zhejiang Kandi Technologies").

 The
Company's organizational chart as of the date of this report is as follows:

 F- 13

 Operating
Subsidiaries

to certain VIE agreements signed by Zhejiang Kandi Technologies and Mr. Hu Xiaoming, from January 2011 to March 13, 2022,
Zhejiang Kandi Technologies is entitled to 100 % of the economic benefits, voting rights and residual interests ( 100 % of profits and losses)
of Jinhua Kandi New Energy Vehicles Co., Ltd. ("Kandi New Energy"). Specifically, on May 18, 2010, Zhejiang Kandi Technologies
signed the Agreement of Establishment of Kandi New Energy with Mr. Hu Xiaoming, pursuant to which both parties agreed to together contribute
RMB 36 Million to establish Kandi New Energy, and each party will contribute 50 % of the total investment. Zhejiang Kandi Technologies
will make its contribution in kind equivalent to its portion and Mr. Hu will make his contribution in cash. On the same date,
Zhejiang Kandi Technologies signed a Contractor's Agreement with Mr. Hu Xiaoming pursuant to which both parties agreed that during
the existence of Kandi New Energy, it is contracted to Zhejiang Kandi Technologies for operation and management and Mr. Hu Xiaoming will
not participate in any management, dividend distribution or loss of Kandi New Energy. On the same day, Zhejiang Kandi Technologies also
signed a Share Escrow and Trust Agreement with Mr. Hu Xiaoming, pursuant to which upon the existence of Kandi New Energy, Mr.
Hu Xiaoming agreed to entrust his entire 50 % equity in the Kandi New Energy with Zhejiang Kandi Technologies, and Zhejiang Kandi Technologies
agrees to accept such trust. All the above-mentioned agreements shall only be effective within 30 days upon the Kandi New Energy receives
government's approval and reaches to the practical operation stage. Therefore, all the three agreements became effective on January
2011. All these three agreements were previously attached as Exhibit 10.13, Exhibit 10.14, and Exhibit 10.15 to the Company's Annual
Report on Form 10-K filed on March 31, 2011 and are incorporated herein by reference. Effective March 14, 2022, Mr. Hu Xiaoming
transferred his 50 % equity interests of Kandi New Energy to Zhejiang Kandi Technologies. As a result, Kandi New Energy has become a wholly-owned
subsidiary of Zhejiang Kandi Technologies.

 In
April 2012, pursuant to an agreement with the shareholders of Yongkang Scrou Electric Co, Ltd. ("Yongkang Scrou"), the Company
acquired 100 % of Yongkang Scrou, a manufacturer of automobile and EV parts. In September 2020, Zhejiang Kandi Technologies transferred
all of its equity interest in Yongkang Scrou to its wholly owned subsidiary, Zhejiang Kandi Smart Battery Swap Technology Co., Ltd. ("Kandi
Smart Battery Swap").

 On
February 18, 2021, Zhejiang Kandi Technologies signed an Equity Transfer Agreement with Geely to transfer the remaining 22 % equity interests
of the Fengsheng Automotive Technology Group Co., Ltd. to Geely. As of September 10, 2021, the Company received all the equity transfer
payment.

 In
April 2013, Zhejiang Kandi Technologies and Kandi New Energy formed Kandi Electric Vehicles (Wanning) Co., Ltd., which was renamed Kandi
Electric Vehicles (Hainan) Co., Ltd. ("Kandi Hainan"), when it was relocated from Wanning City to Haikou City in January
2016. Zhejiang Kandi Technologies has 45 % ownership interest in Kandi Hainan, and Kandi New Energy has the remaining 55 % ownership interest.

 In
December 2017, Zhejiang Kandi Technologies and the sole shareholder of Jinhua An Kao Power Technology Co., Ltd. ("Jinhua An Kao")
entered into a Share Transfer Agreement and a Supplementary Agreement, pursuant to which Zhejiang Kandi Technologies acquired 100 % equity
of Jinhua An Kao. In June 2020, Jinhua An Kao changed its name to Kandi Smart Battery Swap.

 On
May 31, 2018, the Company entered into a Membership Interests Transfer Agreement (the "Transfer Agreement") with the two
members of SC Autosports LLC ("SC Autosports") (formerly known as: Sportsman Country, LLC) pursuant to which the Company
acquired 100 % of the ownership of SC Autosports.

 F- 14

 On
March 4, 2019, in order to build a logistics network composed of suppliers, manufacturers, warehouses, distribution centers and channel
providers, meeting the needs of improving production and operation efficiency, the Company participated in the formation of Zhejiang
Kandi Supply Chain Management Co., Ltd. ("Supply Chain Company"). Zhejiang Kandi Technologies has 10 % ownership interest
in Supply Chain Company, the remaining 90 % is owned by unrelated other parties. As of the date of this report, Zhejiang Kandi Technologies
has not made any capital contribution to Supply Chain Company since the contribution is not yet due as the relevant per PRC regulations,
and is not involved in its operations. The Company deemed that Supply Chain Company is not a related party with the analysis in accordance
with ASC 850-10.

 In
September 2020, in order to make full use of its dozens of patents in the field of battery swap systems and attract strategic investors
to participate across the whole sector value chain, including battery swapping services and used battery recycling, the Company formed
China Battery Exchange (Zhejiang) Technology Co., Ltd. ("China Battery Exchange") and its subsidiaries. Zhejiang Kandi Technologies
has 100 % ownership interest in China Battery Exchange and its subsidiaries.

 In
September 2020, intending to explore ridesharing service business, the Company participated in the formation of Zhejiang Ruiheng Technology
Co., Ltd ("Ruiheng"). Zhejiang Kandi Technologies has 10 % ownership interest in Ruiheng, the remaining 90 % is owned by unrelated
other parties. The Company deemed that Ruiheng is not a related party with the analysis in accordance with ASC 850-10. Ruiheng was dissolved
in November 2023; however, its subsidiary Hainan Ruigeng still operates under different group of shareholders and managements.

 During
January 2021, SC Autosports established a wholly owned subsidiary, Kandi America Investment, LLC ("Kandi Investment") in
Dallas.

 On
July 13, 2021, Zhejiang Kandi Technologies entered into a Share Transfer Agreement and Supplementary Agreement with three individual
shareholders of Jiangxi Province Huiyi New Energy Co., Ltd. ("Jiangxi Huiyi") to acquire 100 % equity of Jiangxi Huiyi. The
acquisition was consummated at October 31, 2021.

 On
February 15, 2022, Kandi Hainan and Jiangsu Xingchi Signed a joint venture agreement, the two parties jointly invested RMB 30,000,000
(approximately $ 4.6 million) in Haikou, Hainan (of which Kandi Hainan owns 66.7 % and Jiangsu Xingchi owns 33.3 %) to establish Hainan
Kandi Holding New Energy Technology Co., Ltd. ("Hainan Kandi Holding").

 On June 17, 2023, SC Autosports entered into an equity transfer agreement
with the owner of Northern Group, Inc. ("NGI") to acquire 100 % equity of NGI, and on March 12, 2024, the parties entered into a supplementary agreement
to revise certain profit targets. The acquisition was consummated on November
30, 2023.

 During September 27, 2023, SC Autosports established
a wholly owned subsidiary, Kandi Technologies Canada Inc. ("Kandi Canada") in Ontario, Canada.

 On December 27, 2023, the shareholders of the Company approved the
merger agreement and plan of merger, that the Company is to merge with and into Kandi BVI, with Kandi BVI as the surviving company upon
the merger becoming effective in the second quarter of 2024 (the "Reincorporation").

 On January 1, 2024, the Company established a
wholly-owned subsidiary, Kandi Electric Innovation, Inc. ("Kandi Innovation"), incorporated under the laws of the state of
Nevada. Subsequently, SC Autosports became the wholly-owned subsidiary of Kandi Innovation, instead of being directly owned by the Company.

 NOTE
2 - LIQUIDITY

 The Company had working capital of $ 266,874,509
 as of December 31, 2023, an increase of $ 19,057,384 from the working capital of $ 247,817,125 as of December 31,
2022. As of December 31, 2023 and December 31, 2022, the Company's cash and cash equivalents were $ 33,756,941 and $ 84,063,717,
respectively, and the Company's restricted cash was $ 59,873,127 and $ 66,976,554, respectively. As of December 31, 2023 and December
31, 2022, the Company had multiple certificates of deposit with a total amount of $ 33,947,212 and $ 81,191,191, respectively. These certificates
of deposit have an annual interest rate from 3.25 % to 3.99 % which can be transferred when necessary without any penalty
or any loss of interest and principal.

 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.

 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. Currently the Company has sufficient cash in hand to meet the existing operational needs, but the
credit line is retained and can be utilized timely when the Company has special capital needs. The PRC subsidiaries have $ 7.1 million
short-term bank loans and the US subsidiaries have $ 2.0 million short-term bank loans and $ 8.4 million long-term bank loans
outstanding as of December 31, 2023.

 F- 15

 NOTE 3 - BASIS
OF PRESENTATION

financial statements and notes are the representations of the Company's management. Accounting policies adopted by the Company
conform to generally accepted accounting principles in the United States and have been consistently applied in the Company's presentation
of its financial statements.

 NOTE 4 - PRINCIPLES
OF CONSOLIDATION

condensed 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)

 Zhejiang Kandi Technologies, a wholly-owned subsidiary of Continental, incorporated under the laws of the PRC;

 (3)
 Kandi New Energy Vehicle Co. Ltd. ("Kandi New Energy"), formerly, a 50 %-owned subsidiary of Zhejiang Kandi Technologies (Mr. Hu Xiaoming owned the other 50 %), incorporated under the laws of the PRC. Pursuant to agreements executed in January 2011, Mr. Hu Xiaoming contracted with Zhejiang Kandi Technologies for the operation and management of Kandi New Energy and put his shares of Kandi New Energy into escrow. As a result, Zhejiang Kandi Technologies was entitled to 100 % of the economic benefits, voting rights and residual interests of Kandi New Energy. Effective March 14, 2022, Mr. Hu Xiaoming transferred his 50 % equity interests of Kandi New Energy to Zhejiang Kandi Technologies. As a result, Kandi New Energy has become a wholly-owned subsidiary of Zhejiang Kandi Technologies;

 (4)
 Kandi Electric Vehicles (Hainan) Co., Ltd. ("Kandi Hainan"), a subsidiary 55 % owned by Kandi New Energy and 45 % owned by Zhejiang Kandi Technologies, incorporated under the laws of the PRC;

 (5)

 Zhejiang Kandi Smart Battery Swap Technology Co., Ltd ("Kandi Smart Battery Swap"), a wholly-owned subsidiary of Zhejiang Kandi Technologies, incorporated under the laws of the PRC;

 (6)

 Yongkang Scrou Electric Co, Ltd. ("Yongkang Scrou"), a wholly-owned subsidiary of Kandi Smart Battery Swap, incorporated under the laws of the PRC;

 (7)

 SC Autosports (d/b/a Kandi America), a wholly-owned subsidiary of the Company, formed under the laws of the State of Texas, USA;

 (8)

 China Battery Exchange (Zhejiang) Technology Co., Ltd. ("China Battery Exchange"), a wholly-owned subsidiary of Zhejiang Kandi Technologies, and its subsidiaries, incorporated under the laws of the PRC;

 (9)

 Kandi America Investment, LLC ("Kandi Investment"), a wholly-owned subsidiary of SC Autosports formed under the laws of the State of Texas, USA;

 (10)
 Jiangxi Province Huiyi New Energy Co., Ltd. ("Jiangxi Huiyi") and its subsidiaries, a wholly-owned subsidiary of Zhejiang Kandi Technologies, incorporated under the laws of the PRC; and

 (11)
 Hainan Kandi Holding New Energy Technology Co., Ltd. ("Hainan Kandi Holding"), a subsidiary of Kandi Hainan, incorporated under the laws of the PRC; Kandi Hainan owns 66.7 % and a non-affiliate, Jiangsu Xingchi owns 33.3 % of Hainan Kandi Holding. Consequently, effective February 15, 2022, non-controlling interests of an aggregate of 33.3 % of the equity interests of Hainan Kandi Holding held by an entity are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interest in the results of the Company are presented on the consolidated statement of operations as an allocation of the total income or loss for the period between non-controlling interest holders and the shareholders of the Company;

 (12)
 Northern Group, Inc. ("NGI"), a wholly-owned subsidiary of SC Autosports formed under the laws of the State of Wisconsin, USA; and

 (13)
 Kandi Technologies Canada Inc. ("Kandi Canada"), a wholly-owned subsidiary of SC Autosports formed under the laws of Canada.

 F- 16

 NOTE 5 - USE OF
ESTIMATES

 The preparation
of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, and related disclosures of contingent assets and liabilities at the balance sheet date,
and the reported revenues and expenses during the reported period in the consolidated financial statements and accompanying notes. Significant
accounting estimates reflected in the Company's consolidated financial statements primarily include, but are not limited to, allowances
for doubtful accounts, lower of cost and net realizable value of inventory, assessment for impairment of long-lived assets and intangible
assets, valuation of deferred tax assets, change in fair value of contingent consideration, determination of share-based compensation
expenses as well as fair value of stock warrants.

 Management bases
the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form
the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.

 NOTE 6 - SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES

 (a) Economic and
Political Risks

 Part of the Company's
operations are conducted in China. As a result, the Company's business, financial condition and results of operations may be influenced
by the political, economic and legal environments in China, and by the general state of the Chinese economy. In addition, the Company's
earnings are subject to movements in foreign currency exchange rates when transactions are denominated in Renminbi ("RMB"),
which is the Company's functional currency. Accordingly, the Company's operating results are affected by changes in the exchange
rate between the U.S. dollar and the RMB.

operations in China are subject to special considerations and significant risks not typically associated with companies in North America
and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency
exchange restrictions. The Company's performance may be adversely affected by changes in the political and social conditions in
China, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion,
remittances abroad, and rates and methods of taxation, among other things.

 (b) Fair Value
of Financial Instruments

 ASC 820 establishes
a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into
three levels based on the extent to which inputs used in measuring fair value are observable in the market.

 These tiers include:

 Level 1 —
defined as observable inputs such as quoted prices in active markets;

 Level 2 —
defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

 Level 3 —
defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

 F- 17

financial instruments primarily consist of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, other receivables,
accounts payable, other payables and accrued liabilities, short-term bank loans, notes payable, and warrants.

 The carrying value
of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, other receivables, accounts payable, other payables
and accrued liabilities, and notes payable approximate fair value because of the short-term nature of these items. The estimated fair
values of short-term bank loans were not materially different from their carrying value as presented due to the brief maturities and
because the interest rates on these borrowings approximate those that would have been available for loans of similar remaining maturities
and risk profiles. As the carrying amounts are reasonable estimates of fair value, these financial instruments are classified within
Level 1 of the fair value hierarchy. The Company identified notes payable as Level 2 instruments due to the fact that the inputs to valuation
are primarily based upon readily observable pricing information. The balance of notes payable, which were measured and disclosed at fair
value, was $ 24,071,461 and $ 19,123,476 as of December 31, 2023 and December 31, 2022, respectively.

 Contingent consideration related to the acquisitions of Jiangxi Huiyi
and NGI, which is accounted for as liabilities, are measured at each reporting date for their fair value using Level 3 inputs. The fair
value of contingent consideration was $ 2,693,000 and $ 1,803,000 as of December 31, 2023 and December 31, 2022, respectively. Also see
Note 19.

 (c) Cash and Cash
Equivalents

 The Company considers
highly-liquid investments purchased with original maturities of three months or less to be cash equivalents.

 (d) Restricted
cash

 Restricted cash
primarily represents bank deposits for letter of credit and bank acceptance bill.

 As of December 31, 2023 and December 31, 2022,
the Company's restricted cash was $ 59,873,127 and $ 66,976,554, respectively.

 (e) Inventories

 In the Company's
subsidiaries located in China, inventories are stated at the lower of cost or net realizable value (market value). The cost of raw materials
is determined on the basis of weighted average. The cost of finished goods is determined on the basis of weighted average and comprises
direct materials, direct labor and an appropriate proportion of overhead.

 In the Company's
subsidiaries located in the United States, the Company values its vehicle products at the lower of specific cost or net realizable value
to reflect the nature of the oversea trading operations. Specific cost consists of the amount paid to acquire the vehicle, plus the cost
of transportation, custom, and duty. The cost of remaining inventory items is determined on the basis of weighted average.

 Net realizable
value is based on estimated selling prices less selling expenses and any further costs expected to be incurred for completion. Adjustments
to reduce the cost of inventory to net realizable value are made, if required, for estimated excess, obsolescence, or impaired balances.

 (f) Accounts Receivable

 Accounts receivable
are recognized and carried at net realizable value. The Company establishes provision for doubtful accounts when there is objective evidence
that the Company may not be able to collect amounts due. Management reviews the adequacy of the provision for doubtful accounts on an
ongoing basis, using historical collection trends and individual account analysis. The provision is based on management's best
estimates of specific losses on individual customer exposures, as well as historical trends of collections. Account balances are charged
off against the provision after all means of collection have been exhausted and the likelihood of collection is not probable. An
allowance for doubtful accounts is recorded for periods in which the Company determines credit losses are probable. In order to measure
expected credit losses of the accounts receivable, the Company's policy is to adopt aging method by reviewing and analyzing the
aging of each customer, especially those with aged balances without any movement, and then assessing their financial conditions and payment
plans. On top of the aging analysis, the Company also analyzed the nature and background of the customers, and analyzed the probability
of recovery of the receivables. Accounts are written off after exhaustive collection efforts. If accounts receivable are to be provided
for, or written off, they are recognized in the consolidated statement of operations within the operating expenses line item. If accounts
receivable previously written off is recovered in a later period or when facts subsequently become available to indicate that the amount
provided as an allowance for doubtful accounts was incorrect, an adjustment is made to restate allowance for doubtful accounts.

 F- 18

 As of December
31, 2023 and December 31, 2022, credit terms with the Company's customers were typically 60 to 180 days after delivery. The Company
has agreements or purchase orders signed with the customers which state the payment term based on the scale of sales and background of
the customers. The terms and agreements signed are legally enforceable. As of December 31, 2023 and 2022, the Company had $ 2,886,223
and $ 2,285,386 allowance for doubtful accounts, as per the Company management's judgment based on their best knowledge. The Company
conducts quarterly assessments of the state of the Company's outstanding receivables and reserves any allowance for doubtful accounts
if it becomes necessary.

 The table below
summarized the aging of the accounts receivable as of December 31, 2023 and 2022.

 Aging of accounts receivable as of December 31, 2022

 Outstanding

 balance

 Subsequent

 collection (1)

 1 to 90 days

 $
 17,696,095

 $
 17,269,833

 91 to 180 days

 1,863,518

 1,775,104

 Over 180 days

 634,596

 634,596

 Over one year

 1,104,456

 258,981

 Over two years

 19,137,597

 16,312,594

 Total

 $
 40,436,262

 $
 36,251,108

 Aging of accounts receivable as of December 31, 2023

 Outstanding

 balance

 Subsequent

 collection (1)

 1 to 90 days

 $
 13,532,753

 $
 8,614,006

 91 to 180 days

 4,810,095

 1,025,240

 Over 180 days

 142,122

 111,448

 Over one year

 287,967

 197,550

 Over two years

 3,065,031

 49,506

 Total

 $
 21,837,968

 $
 9,997,750

 (1)
 the Company reviewed the subsequent collection until
March 10, 2024.

 (g) Notes Receivable

 Notes receivable represent short-term loans to
third parties with maximum terms of six months. Interest income is recognized according to each agreement between a borrower and the Company
on an accrual basis. For notes receivable with banks, the interest rates are determined by banks. For notes receivable with other parties,
the interest rates are based on agreements between the parties. If notes receivable are paid back, that transaction will be recognized
in the relevant year. If notes receivable are not paid back, or are written off, that transaction will be recognized in the relevant year
once default is probable, reasonably assured, and the loss can be reasonably estimated. The Company will recognize income if the written-off
loan is recovered at a future date. In case of any foreclosure proceedings or legal actions, the Company provides an accrual for the related
foreclosure and litigation expenses. If the Company decides to discount notes receivable for the purpose of receiving immediate cash,
the current discount rate is approximately in the range of 1.5 % to 2.2 % annually depends on different banks. As of December 31, 2023 and
2022, the Company had notes receivable from unrelated parties of $ 124,473,111 and $ 434,461, respectively, which notes receivable typically
mature within six months.

 F- 19

 (h) Property,
Plant and Equipment, net

 Property, Plant
and equipment are carried at cost less accumulated depreciation. Depreciation is calculated over the asset's estimated useful life,
using the straight-line method. Leasehold improvements are amortized over the life of the asset or the term of the lease, whichever is
shorter. Estimated useful lives are as follows:

 Buildings

 20 - 40 years

 Machinery and equipment

 10 years

 Office equipment

 5 years

 Motor vehicles

 5 years

 Molds

 5 years

 The costs and
related accumulated depreciation of assets sold or otherwise retired are eliminated from the Company's accounts and any gain or
loss is included in the statements of income. The cost of maintenance and repairs is charged to expenses as incurred, whereas significant
renewals and betterments are capitalized.

 (i) Land Use Rights,
net

 Land in China
is owned by the government and land ownership rights cannot be sold to an individual or to a private company. However, the Chinese government
grants the user a "land use right" to use the land. The land use rights granted to the Company are amortized using the straight-line
method over a term of fifty years.

 The Company elected
the practical expedient that permits the Company to carry forward the accounting treatment for land use rights in existing agreements
as of the effective date of ASC 842.

 Upon the adoption
of ASC 842 on January 1, 2019, the new land use rights agreements signed beyond the effective date are identified as operating lease
right-of-use assets, whereas the existing agreements as of the effective date are separately disclosed as "Land use rights"
in the Company's consolidated balance sheets.

 (j) Accounting
for the Impairment of Long-Lived Assets

 The Company periodically
evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject to amortization, when events
and circumstances warrant such a review, pursuant to the guidelines established in ASC Topic 360 Impairment or Disposal of Long-Lived
Assets. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is
separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying
value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows
discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner,
except that fair market values are reduced for disposal costs.

 The Company recognized
impairment loss of $ 942,591 and $ 2,697,521 for finite-lived intangible assets as of December 31, 2023 and December 31, 2022, respectively.

 F- 20

 (k) Revenue Recognition

 The Company adopted
ASC Topic 606 Revenue from Contracts with Customers with a date of the initial application of January 1, 2018 using the modified retrospective
method. As a result, the Company has changed its accounting policy for revenue recognition. The impact of the adoption of ASC Topic 606
on the Company's consolidated financial statements is not material.

 The Company recognizes
revenue when goods or services are transferred to customers in an amount that reflects the consideration which it expects to receive
in exchange for those goods or services. In determining when and how revenue is recognized from contracts with customers, the Company
performs the following five-step analysis: (i) identification of contract with customer (ii) determination of performance obligations
(iii) measurement of the transaction price (iv) allocation of the transaction price to the performance obligations and (v)
recognition of revenue when (or as) the Company satisfies each performance obligation.

 The Company generates revenue through the sales
of EV parts and off-road vehicles, as well as commission income. The revenue is recognized at a point in time once the Company has determined
that the customer has obtained control over the product or the control of the promised services. Control is typically deemed to have been
transferred to the customer when the performance obligation is fulfilled, usually at the time of delivery, at the net sales price (transaction
price). Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.
Shipping and handling costs for product shipments occur prior to the customer obtaining control of the goods are accounted for as fulfillment
costs rather than separate performance obligations and recorded as sales and marketing expenses.

 See Note 24 "Segment
Reporting" for disaggregation of revenue by reporting segments. The Company believes this disaggregation best depicts how the nature,
amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

 (l) Research and
Development

 Expenditures relating
to the development of new products and processes, including improvements to existing products as well as research and development and
consulting work performed by third parties, are expensed as incurred. Research and development expenses were $ 4,265,176 and $ 6,029,608
for the years ended December 31, 2023 and 2022, respectively.

 (m) Government
Grants

 Government grants
are recognized when there is reasonable assurance that: (1) the recipient will comply with the relevant conditions and (2) the grant
will be received. After initial recognition, government grants are recognized in profit or loss on a systematic basis that mirrors the
manner in which the Company recognizes the underlying costs for which the grant is intended to compensate. If some, or all, of a government
grant becomes repayable (e.g. due to non-fulfillment of the grant conditions), then the repayment is accounted for prospectively as a
change in accounting estimate. The effect of the change in estimate is recognized in the period in which management concludes that it
is no longer reasonably assured that all of the grant conditions will be met. A corresponding financial liability is recognized for the
amount of the repayment.

 For the years
ended December 31, 2023 and 2022, $ 2,017,551 and $ 1,639,328, respectively, were received by the Company's subsidiaries from the
Chinese government.

 F- 21

 (n) Income Taxes

 The Company accounts
for income tax using an asset and liability approach, which allows for the recognition of deferred tax benefits in future years. Under
the asset and liability approach, deferred income taxes are recognized for differences between the financial reporting and tax bases
of assets and liabilities at enacted tax rates in effect for the years in which the differences are expected to reverse. The accounting
for deferred tax calculation represents the Company management's best estimate of the most likely future tax consequences of events
that have been recognized in our financial statements or tax returns and related future anticipation. A valuation allowance is recorded
to reduce the deferred tax assets to an amount that is more likely than not to be realized after considering all available evidence,
both positive and negative.

 (o) Foreign Currency
Translation

 The accompanying
consolidated financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB).
Capital accounts of the consolidated financial statements are translated into United States dollars from RMB at their historical exchange
rates when the capital transactions occurred.

 Assets and liabilities
are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of
the reporting period, which rates are obtained from the website:

 2023

 2022

 Period end RMB: USD exchange rate

 7.0698

 6.8973

 Average RMB: USD exchange rate

 7.0727

 6.7284

 (p) Comprehensive
Income (Loss)

 Comprehensive
income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners.
Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive
income (loss) are required to be reported in a financial statement that is presented with the same prominence as other financial statements.
Comprehensive income (loss) includes net income (loss) and the foreign currency translation changes.

 (q) Segments

 In accordance
with ASC 280-10, Segment Reporting, the Company's chief operating decision maker ("CODM"), identified as the Company's
Chief Executive Officer, relies upon the consolidated results of operations as a whole when making decisions about allocating resources
and assessing the performance of the Company. As a result of the assessment made by CODM, the Company has only one reportable segment.
The Company does not distinguish between markets or segments for the purpose of internal reporting. As the Company's long-lived
assets are substantially located in the PRC, no geographical segments are presented.

 (r) Stock Option
Expenses

stock option expenses are recorded in accordance with ASC 718 and ASC 505.

 The fair value
of stock options is estimated using the Binomial Tree model. The Company's expected volatility assumption is based on the historical
volatility of the Company's common stock. The expected life assumption is primarily based on the expiration date of the option.
The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant.
The recognition of stock option expenses is based on awards expected to vest.

 The stock-based
option expenses for the years ended December 31, 2023 and 2022 were $ 3,476,058 and $ 1,231,566, respectively. There were no forfeitures
estimated during the reporting period.

 F- 22

 (s) Goodwill

 The Company allocates
goodwill from business combinations to reporting units based on the expectation that the reporting unit is to benefit from the business
combination. The Company evaluates its reporting units on an annual basis and, if necessary, reassigns goodwill using a relative fair
value allocation approach. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests
if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying
value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance
indicators, competition, or sale or disposition of a significant portion of a reporting unit.

 Application of
the goodwill impairment test requires judgments, including the identification of reporting units, assignment of assets and liabilities
to reporting units, assignment of goodwill to reporting units, and the determination of the fair value of each reporting unit. The Company
first assesses qualitative factors to determine whether it is more likely than not that goodwill is impaired. If the more likely than
not threshold is met, the Company performs a quantitative impairment test.

 The Company applies
the reporting unit criteria in ASC 350-20 to the components to determine if the reporting unit should be identified one level below the
operating segment. Each component will be evaluated to determine if: (a) it is a business (as defined in ASC 805), (b) discrete financial
information is available and (c) the operating results are regularly reviewed by the segment manager(s). If the components of a specific
operating segment meet these criteria, they might be deemed to be separate reporting units. However, if they have similar economic characteristics
(which is a matter of judgment based on individual facts and circumstances), these components must be aggregated into one reporting unit.
There are four reporting units under the goodwill impairment analysis, namely 1) SC Autosports, 2) Jinhua An kao and Yongkang Scrou,
3) Jiangxi Huiyi, and 4) NGI.

 As of December
31, 2023 and 2022, the Company performed goodwill impairment testing at the reporting unit level and recognized impairment loss of $ 496,981
and $ 642,665, respectively.

 (t) Intangible
Assets

 Intangible assets consist of patent, trade names,
customer relations and technology associated with the purchase price from the allocation of Kandi Smart Battery Swap, Jiangxi Huiyi, Hainan
Kandi Holding and NGI. Such assets are being amortized over their estimated useful lives. Intangible assets were amortized as of December
31, 2023. The amortization expenses for intangible assets were $ 1,489,657 and $ 1,965,490 for the years ended December 31, 2023 and 2022,
respectively.

 The Company recognized
impairment loss of $ 942,591 and $ 2,697,521 for finite-lived intangible assets as of December 31, 2023 and December 31, 2022, respectively.

 (u) Accounting
for Sale of Common Stock and Warrants

 In connection
of the issuance of common stocks, the Company may issue options or warrants to purchase common stock. Warrants classified as equity are
initially recorded at fair value and subsequent changes in fair value are not recognized as long as the warrants continue to be classified
as equity.

 F- 23

 (v)
Consolidation of variable interest entities

 In
accordance with accounting standards regarding consolidation of variable interest entities, or VIEs, VIEs are generally entities that
lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack
adequate decision making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary
of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes.

 Based
on the contractual arrangements, Kandi New Energy had been deemed as a VIE and that the Company's wholly-owned subsidiary, Zhejiang
Kandi Technologies, absorbs all risk of loss from the activities of this VIE, thereby enabling the Company, through Zhejiang Kandi Technologies,
to receive all of its expected residual returns. Therefore, although Kandi Technologies only owns 50 % equity in Kandi New Energy, for
accounting purpose, Kandi Technologies is the sole beneficiary and shall be wholly included in the consolidation.

 Additionally,
because Kandi New Energy is under common control with other entities, the consolidated financial statements have been prepared as if
the transactions had occurred retroactively as to the beginning of the reporting period of these consolidated financial statements.

 Control
and common control are defined under the accounting standards as "an individual, enterprise, or immediate family members who hold
more than 50 percent of the voting ownership interest of each entity." Because the owners collectively owned 100 % of Kandi New
Energy, and had agreed to vote their interests in concert since the establishment of each of these three companies as memorialized in
the Voting Rights Proxy Agreement, the Company believes that the owners collectively have control and common control of Kandi New Energy.
Accordingly, the Company believes that Kandi New Energy was constructively held under common control by Zhejiang Kandi Technologies as
of the time the contractual agreements were entered into, establishing Zhejiang Kandi Technologies as their primary beneficiary. Zhejiang
Kandi Technologies, in turn, is owned by Continental, which is owned by the Company.

 The
Company has completed the conversion of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies, effective March
14, 2022. The Company no longer has any VIE subsequent to March 14, 2022. There was no other VIE contractual arrangements during the
year ended December 31, 2023.

 For
accounting purpose, the tables below are condensed consolidating schedules summarizing separately the results of operations, financial
position and cash flows of the parent company including non-VIE subsidiaries and Kandi New Energy, which was deemed as an VIE since the
Company only owned 50 % of the equity, and control Kandi New Energy through several contractual agreements prior to its conversion to
a wholly-owned subsidiary of Zhejiang Kandi Technologies effective March 14, 2022, together with eliminating adjustments:

Statements of Operations Information

 For the year ended December 31, 2022

 Parent including non-VIE
 subsidiaries

 VIE*

 Elimination

 Revenues

 $

 $
 -

 $
 -

 $

 Gross profit

 $

 $
 -

 $
 -

 $

 Loss from operations

 $
 ( 27,679,432
)

 $
 -

 $
 -

 $
 ( 27,679,432
)

 Loss before income taxes

 $
 ( 13,338,534
)

 $
 -

 $
 -

 $
 ( 13,338,534
)

 Net loss

 $
)

 $
 -

 $
 -

 $
)

 *
 Effective March 14, 2022, the Company has completed the conversion
of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no
longer has any VIE as of the date of this report.

 F- 24

Balance Sheets Information

 As of December 31, 2022

 Parent including non-VIE
 subsidiaries

 VIE*

 Elimination

 Cash and cash equivalents

 $

 $
 -

 $
 -

 $

 Total current assets

 $

 $
 -

 $
 -

 $

 Total non-current assets

 $

 $
 -

 $
 -

 $

 Total current liabilities

 $

 $
 -

 $
 -

 $

 Total non-current liabilities

 $

 $
 -

 $
 -

 $

 Total stockholders' equity

 $

 $
 -

 $
 -

 $

 *
 Effective March 14, 2022, the Company has completed the conversion
of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no
longer has any VIE as of the date of this report.

 Percentage of VIE's assets and liabilities compared to consolidated
assets and liabilities

 As of December 31, 2022

 Parent including non-VIE
 subsidiaries

 % of VIE's assets and
 liabilities in consolidated assets and liabilities

 Cash and cash equivalents

 $

 $

 -

 Total current assets

 $

 $

 -

 Total non-current assets

 $

 $

 -

 Total current liabilities

 $

 $

 -

 Total non-current liabilities

 $

 $

 -

 Total stockholders' equity

 $

 $

 -

 *
 Effective March 14, 2022, the Company has completed the conversion
of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no
longer has any VIE as of the date of this report.

Cash Flows Information

 For the year ended December 31, 2022

 Parent including non-VIE
 subsidiaries

 VIE*

 Elimination

 Net cash provided by operating activities

 $
 31,478,911

 $
 -

 $
 -

 $
 31,478,911

 Net cash used in investing activities

 $
 ( 35,031,115
)

 $
 -

 $
 -

 $
 ( 35,031,115
)

 Net cash used in financing activities

 $
 ( 4,333,088
)

 $
 -

 $
 -

 $
 ( 4,333,088
)

 *
 Effective March 14, 2022, the Company has completed the conversion
of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no
longer has any VIE as of the date of this report.

 F- 25

 NOTE 7 - NEW ACCOUNTING
PRONOUNCEMENTS

 Accounting Pronouncements
Adopted

 In October 2021,
the FASB issued ASU 2021-08, "Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities
from Contracts with Customers", which requires that an acquirer recognize and measure contract assets and contract liabilities
acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. Prior to this ASU, an acquirer
generally recognizes contract assets acquired and contract liabilities assumed that arose from contracts with customers at fair value
on the acquisition date. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The
ASU is applied prospectively to business combinations occurring on or after the effective date of the amendment (or if adopted early
as of an interim period, as of the beginning of the fiscal year that includes the interim period of early application). The Company has
adopted this accounting pronouncement from January 1, 2023, and there was no material impact on its consolidated financial statements
from the adoption.

 Issued Accounting Standards Not Yet Adopted

 In November 2023, the FASB issued ASU 2023-07, Segment
Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands reportable segment disclosure requirements, primarily
through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public entity discloses, on
an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker ("CODM"),
a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM
when deciding how to allocate resources. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023,
and interim periods within fiscal years beginning after December 15, 2024. Retrospective application is required for all prior periods
presented, and early adoption is permitted. The Company does not expect the adoption of ASU No. 2023-07 to have a material impact on the
Company's consolidated financial statements or disclosures.

 In December 2023, the FASB issued ASU No. 2023-09,
Income Taxes: Improvements to Income Tax Disclosures. This guidance requires consistent categories and greater disaggregation of information
in the rate reconciliation and disclosures of income taxes paid by jurisdiction. The guidance is effective for fiscal years beginning
after December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is
currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures.

 NOTE 8 - CONCENTRATIONS

 (a) Customers

 For the years
ended December 31, 2023 and 2022, the Company's major customers, who accounted for more than 10 % of the Company's consolidated
revenue, were as follows:

 Sales

 Trade Receivable

 Major Customers

 2023

 2023

 2022

 Customer A

 %

 %

 %

 Customer B

 %

 %

 -

 Customer C

 %

 %

 -

 Sales

 Trade Receivable

 Major Customers

 2022

 2022

 2021

 Customer A

 %

 %

 -

 (b) Suppliers

 For the years
ended December 31, 2023 and 2022, the Company's material suppliers, each of whom accounted for more than 10 % of the Company's
total purchases, were as follows:

 Accounts Payable

 Major Suppliers

 2023

 2023

 2022

 Zhejiang Kandi Supply Chain Management Co., Ltd. (1)

 %

 %

 %

 Accounts Payable

 Major Suppliers

 2022

 2022

 2021

 Zhejiang Kandi Supply Chain Management Co., Ltd. (1)

 %

 %

 %

 (1)
 Zhejiang Kandi Technologies owns 10 % equity interest of the
supplier.

 F- 26

 NOTE 9 - EARNINGS
(LOSS) PER SHARE

 The Company calculates
earnings (loss) per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings
(loss) per share. Basic earnings (loss) per share are computed using the weighted average number of shares outstanding during the reporting
period. Diluted earnings (loss) per share represents basic earnings (loss) 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 being below the exercise price of certain options and warrants, approximately 968,019 options
and 8,131,332 warrants that were wholly expired in May 2023 were excluded from the calculation of diluted earnings per share, for the
year ended December 31, 2023. There were dilutive effects of 1,121,797 shares for 3,333,339 stock options granted on September 7, 2022,
at an exercise price of $ 2.07 per share, for the year ended December 31, 2023.

 Due to the net
loss for the year ended December 31, 2022, approximately 5,900,000 options and 8,131,332 warrants were excluded from the calculation
of diluted loss per share, for the year ended December 31, 2022.

 NOTE 10 - ACCOUNTS
RECEIVABLE, NET

 Accounts receivable
are summarized as follows:

 2023

 2022

 Accounts receivable

 $

 21,837,968

 $

 40,436,262

 Less: allowance for doubtful accounts

 ( 2,886,223

)

 ( 2,285,386

)

 Accounts receivable, net

 $

 18,951,745

 $

 38,150,876

 The following
table sets forth the movement of provision for doubtful accounts:

 Allowance for

Doubtful Accounts

 BALANCE AT DECEMBER 31, 2021

 $
 3,053,277

 Provision

 456,974

 Recovery

 ( 999,775
)

 Exchange rate difference

 ( 225,090
)

 BALANCE AT DECEMBER 31, 2022

 $
 2,285,386

 Provision

 690,236

 Recovery

 ( 33,906
)

 Exchange rate difference

 ( 55,493
)

 BALANCE AT DECEMBER 31, 2023

 $
 2,886,223

 F- 27

 NOTE 11 - INVENTORIES

 Inventories are
summarized as follows:

 2023

 2022

 Raw material

 $

 6,248,888

 $

 6,551,450

 Work-in-progress

 4,061,146

 4,114,550

 Finished goods and finished goods on consignment*

 51,241,234

 29,809,366

 Inventories

 $

 61,551,268

 $

 40,475,366

 *
 As of December 31, 2023, approximately $ 50.5 million of finished goods
and finished goods on consignment of off-roads and EVs held by SC Autosports were pledged as collateral for the $ 2,000,000 short-term
loan.

 NOTE 12 - NOTES
RECEIVABLE

 Notes receivable
are summarized as follows:

 2023

 2022

 Notes receivable as below:

 Bank acceptance notes

 $
 -

 $
 434,461

 Commercial acceptance notes

 124,473,111
 *

 -

 Notes receivable

 $
 124,473,111

 $
 434,461

 *
 As of December 31, 2023, there was $ 124,473,111 notes receivable from unrelated parties, among which $ 60.8 million was due on January 3, 2024 and $ 63.7 million was due on January 5, 2024. By end of January 2024, $ 124,473,111 notes receivable was wholly settled with cash collection subsequently.

 F- 28

 NOTE 13 - PROPERTY,
PLANT AND EQUIPMENT

 Property, plant
and equipment as of December 31, 2023 and 2022 consisted of the following:

 2023

 2022

 At cost:

 Buildings (1)

 $
 61,964,058

 $
 49,239,626

 Machinery and equipment (2)

 74,520,599

 77,845,979

 Office equipment

 1,474,944

 1,528,135

 Motor vehicles and other transport equipment

 695,383

 1,810,825

 Molds and others

 13,011,196

 10,983,573

 151,666,180

 141,408,138

 Less: Accumulated depreciation

 ( 52,862,408
)

 ( 44,239,385
)

 Property, plant and equipment, net

 $
 98,803,772

 $
 97,168,753

 The Company's Jinhua factory completed the
relocation to a new industrial park in April 2021. The new location covers an area of more than 58,000 square meters and a construction
area of more than 96,000 square meters. The Company's off-road vehicles, EV battery packs, electric scooters battery packs, smart
battery swap system and some EV parts are manufactured in the Jinhua factory. The Company's Jinhua factory owns the above production
facilities. The Company's EV products, EV parts and electrical off-road vehicles, including Neighborhood EVs ("NEVs"),
pure electric utility vehicles ("UTV"), pure electric golf cart and EV parts are manufactured in the Hainan factory. The Company's
Hainan factory expects to have production capacity with an annual output (three shifts) of 100,000 units of various models of EV products,
EV parts and electrical off-road vehicles and owns the above facilities. As of December 31, 2023, the Hainan factory has passed the completion
acceptance inspection.

 Depreciation expenses
for the years ended December 31, 2023 and 2022 were $ 10,141,120 and $ 10,165,138, respectively.

 (1)
 As of December 31, 2023, approximately $ 12.4 million of buildings held by Kandi Investment were pledged as collateral for the $ 8,178,574 long-term loan.

 (2)
 As of December 31, 2023, machinery and equipment with carrying value totaling approximately $ 24.2 million were pledged to banks as collateral for credit limits and loans.

 NOTE 14 - INTANGIBLE
ASSETS

 Intangible assets
include acquired other intangibles of trade name, customer relations, patent and technology 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

 useful life

 2023

 2022

 Cost:

 Patent

 1.5 - 3.17 years

 $
 4,818,262

 4,938,765

 Technology

 3 - 5 years

 9,759,823

 10,003,915

 Customer relation

 2.92 years

 1,030,000

 -

 15,608,085

 14,942,680

 Less: Accumulated amortization

 Patent

 $
 ( 3,281,463
)

 ( 2,744,024
)

 Technology

 ( 2,391,950
)

 ( 1,573,079
)

 Customer relation

 ( 28,611
)

 -

 ( 5,702,024
)

 ( 4,317,103
)

 Less: Accumulated impairment for intangible assets

 ( 3,510,236
)

 ( 2,631,465
)

 Intangible assets, net

 $
 6,395,825

 $
 7,994,112

 F- 29

 The aggregate amortization expenses for those
intangible assets that continue to be amortized is reflected in amortization of intangible assets in the Consolidated Statements of Income
and Comprehensive Income and were $ 1,489,657 and $ 1,965,490 for the year ended December 31, 2023 and 2022, respectively.

 Amortization expenses
for the next five years and thereafter are as follows:

 Years ended December 31,

 2024

 $
 1,718,689

 2025

 1,657,930

 2026

 1,426,023

 2027

 820,390

 2028

 772,793

 Thereafter

 -

 Total

 $
 6,395,825

 NOTE 15 - LAND
USE RIGHTS

land use rights consist of the following:

 2023

 2022

 Cost of land use rights

 $
 3,716,267

 $
 3,809,211

 Less: Accumulated amortization

 ( 961,825
)

 ( 899,261
)

 Land use rights, net

 $
 2,754,442

 $
 2,909,950

 The amortization
expense for the years ended December 31, 2023 and 2022 were $ 84,471 and $ 88,794, respectively.

 Amortization expense
for the next five years and thereafter is as follows:

 Years ended December 31,

 2024

 $

 2025

 2026

 2027

 2028

 Thereafter

 2,332,087

 Total

 $
 2,754,442

 NOTE 16 - OTHER
LONG-TERM ASSETS

 2023

 2022

 Prepayments for land use right (i)

 $
 3,738,418

 3,917,226

 Right - of - use asset (ii)

 5,889,690

 6,383,824

 Others

 365,022

 329,861

 Total other long-term asset

 $
 9,993,130

 $
 10,630,911

 (i)
 As of December 31, 2023 and December 31, 2022, the Company's other long term assets included net value of prepayments for land use right of Hainan facility of $ 3,738,418 and $ 3,917,226, respectively. As of December 31, 2023, the land use right of Hainan was not recognized since the land certificate is still in process. The amortization expense for the year ended December 31, 2023 and 2022 were $ 83,196 and $ 87,453, respectively.

 (ii)
 As of December 31, 2023 and December 31, 2022, the Company's operating lease right-of-use assets in other long term assets included net value of land use right of Jinhua facility acquired in October 2020 and Jiangxi facility acquired in October 2021 of $ 5,443,448 and $ 5,697,720, respectively, as well as the amount of $ 446,242 and $ 686,104 related to the lease of Hangzhou office starting January 1, 2022. The amortization expense of land use right of Jinhua facility and Jiangxi facility for the year ended December 31, 2023 and 2022 were $ 115,204 and $ 121,099, respectively.

 F- 30

 NOTE 17 - 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, Zhejiang Kandi Technologies, Kandi
Smart Battery Swap, Jiangxi Huiyi and Kandi Hainan qualify as High and New Technology Enterprise ("HNTE") companies in the
PRC, and are entitled to a reduced income tax rate of 15 % for the years presented. An HNTE Certificate is valid for three years. An entity
may renew its HNTE certificate when the prior certificate expires. Historically, Zhejiang Kandi Technologies, Kandi Smart Battery Swap,
Jiangxi Huiyi and Kandi Hainan have successfully renewed for such certificates when their prior certificates expired. Additionally, Hainan
Kandi Holding also has an income tax rate of 15 % due to its local preferred tax rate in Hainan Free Trade Port. The applicable CIT rate
of each of the Company's other PRC subsidiaries, Kandi New Energy, Yongkang Scrou, China Battery Exchange and its subsidiaries is
 25 %.

 The Company's provision or benefit from
income taxes for interim periods is determined using an estimate of the Company's 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, management makes a cumulative adjustment. For 2023, the Company's effective tax
rate is favorably affected by a super-deduction for qualified research and development costs in China and adversely affected by non-deductible
expenses such as stock rewards for non-US employees, add back of GILTI income and part of entertainment expenses. The Company records
valuation allowances against the deferred tax assets associated with losses and other timing differences for which we 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 December 31, 2023 and 2022 was a tax expense of 51.92 % on a reported income before taxes of
approximately $ 3.5 million and a tax benefit of 3.65 % on a reported loss before taxes of approximately $ 13.3 million, respectively. The
effective tax rates for each of the periods mentioned above are disclosed in the summary table of income tax expenses for December 31,
2023 and 2022.

 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 December 31, 2023, 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. 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 December 31, 2023, 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 December 31, 2023, the Company has no
accrued interest or penalties related to uncertain tax positions.

 Income tax expenses (benefit) for the year ended
December 31, 2023 and 2022 are summarized as follows:

 For Year Ended

 2023

 2022

 Current:

 Provision for CIT

 $
 1,599,668

 $
 ( 26,465
)

 Deferred:

 Provision for CIT

 203,236

 ( 461,045
)

 Income tax expense (benefit)

 $
 1,802,904

 $
 ( 487,510
)

 F- 31

 The
reconciliation of taxes at the PRC statutory rate (25% in 2023 and 2022) to our provision for income taxes for
the years ended December 31, 2023 and 2022 was as follows:

 For Year Ended

 2023

 2022

 Expected taxation at PRC statutory tax rate

 $

 1,885,374

 $

 ( 3,334,633)

 Effect of differing tax rates in different jurisdictions

 650,434

 ( 81,257
)

 Effect of PRC preferential tax rates

 ( 2,471,114
)

 790,053

 Non-taxable income

 ( 898,290
)

 ( 1,984,855
)

 Non-deductible expenses

 3,830,387

 2,315,146

 Research and development super-deduction

 ( 1,516,020
)

 ( 1,672,428
)

 Over-accrued EIT for previous years

 ( 431
)

 ( 538,545
)

 Addition to valuation allowance

 467,366

 2,800,862

 Foreign tax credit

 ( 70,708
)

 ( 84,045
)

 Other (including intercompany transaction)

 ( 74,094
)

 1,302,192

 Income tax expense (benefit)

 $
 1,802,904

 $
 ( 487,510
)

 The
tax effects of temporary differences that give rise to the Company's net deferred tax assets and liabilities as of December 31,
2023 and December 31, 2022 are summarized as follows:

 2023

 2022

 Deferred tax assets:

 Accruals and reserves

 $
 6,388,121

 $
 6,759,952

 Loss carried forward

 9,412,846

 8,547,725

 Total deferred tax assets

 15,800,967

 15,307,677

 Deferred tax liabilities:

 Expense

 ( 345,033
)

 ( 212,143
)

 Tangible

 ( 218,406
)

 ( 207,905
)

 Intangible

 ( 763,627
)

 ( 1,146,339
)

 Revenue

 ( 1,222,344
)

 ( 426,504
)

 Total deferred tax liability

 ( 2,549,410
)

 ( 1,992,891
)

 Net deferred tax assets

 $
 13,251,557

 $
 13,314,786

 less: valuation allowance

 ( 13,400,638
)

 ( 13,260,631
)

 Net deferred tax (liabilities) assets, net of valuation allowance

 $
 ( 149,081
)

 $
 54,155

 The tax effected aggregate Net Operating Loss
("NOL") was $ 9.4 million and $ 8.5 million in tax year 2023 and 2022, which were deriving from entities in the PRC and Hong
Kong. Some of the NOLs will start to expire from 2026 if they are not used. The cumulative NOL in the PRC can be carried forward for five
years in general, and ten years for entities qualify High and New Technology Enterprise ("HNTE") treatment, which is $ 0.7
million and $ 8.6 million respectfully, to offset future net profits for income tax purposes.

 The
Company recorded valuation allowances of $ 13.4 million as of December 31, 2023, against the
deferred tax assets associated with losses and other timing differences for which we may not realize a related tax benefit. Tax benefit
of operating loss is evaluated on an ongoing basis including a review of historical and projected future operating results, the eligible
carry forward period, and available tax planning strategies.

 F- 32

 Income
(loss) before income taxes from PRC and non-PRC sources for the year ended December 31, 2023 and 2022 are summarized as follows:

 For Year Ended

 2023

 2022

 Income (loss) before income taxes consists of:

 PRC

 $
 23,550,796

 $
 ( 10,448,802
)

 Non-PRC

 ( 20,078,125
)

 ( 2,889,732
)

 T otal

 $
 3,472,671

 $
 ( 13,338,534
)

 Net
change in the valuation allowance of deferred tax assets are summarized as follows:

 Net change of valuation allowance of Deferred tax assets

 Balance at December 31,2022

 $
 13,260,631

 Additions-change to tax expense

 467,366

 Prior year true up

 ( 5,478
)

 Exchange rate difference

 ( 321,881
)

 Balance at December 31,2023

 $
 13,400,638

 (b)

 Tax
 Holiday Effect

December 31, 2023 and 2022, the PRC CIT rate was 25 %. Certain subsidiaries of the Company are entitled to tax exemptions (tax holidays)
for the years ended December 31, 2023 and 2022.

 The
combined effects of income tax expense exemptions and reductions available to the Company for the years ended December 31, 2023 and 2022
are as follows:

 2023

 2022

 Tax benefit (holiday) credit

 $
 2,421,539

 $
 1,202,615

 Basic net income per share effect

 $
 0.03

 $
 0.02

 F- 33

 NOTE
18 - LEASES AND RIGHT-OF-USE-ASSETS

 During
October 2020, land use right of gross value of $ 3.5 million was acquired from the government as the new site of Jinhua Facility's
relocation as per the Repurchase Agreement. On October 31, 2021, the Company acquired $ 2.8 million of land use rights through the acquisition
of Jiangxi Huiyi. This land use rights was wholly prepaid.

 The
Company has entered into a lease for Hangzhou office, with a term of 48 months from January 1, 2022 to December 31, 2025. The Company
recorded operating lease assets and operating lease liabilities on January 1, 2022, with a remaining lease term of 48 months and discount
rate of 3.70 %. The annual lease payment for 2022 was prepaid as of January 1, 2022. As of December 31, 2023, the Company has paid
the lease amount of both year 2022 and 2023 totaling $ 490,198.

 The
Company also elected to apply the short-term lease exception for lease arrangements with a lease term of 12 months or less at commencement.
Lease terms used to compute the present value of lease payments do not include any option to extend, renew or terminate the lease that
the Company is not able to reasonably certain to exercise upon the lease inception. Accordingly, operating lease right-of-use assets
and liabilities do not include leases with a lease term of 12 months or less.

 As
of December 31, 2023, the Company's operating lease right-of-use assets (grouped in other long-term assets on the balance sheet)
was $ 5,889,690 and lease liability was $ 445,948
(grouped in other current liabilities and other long-term liabilities on the balance sheet). For the years ended December 31, 2023 and
2022, the Company's operating lease expense were $ 338,233 and $ 355,541, respectively.

 Supplemental
information related to operating leases was as follows:

 2023

 2022

 Cash payments for operating leases

 $
 338,233

 $
 355,541

 Maturities of lease liabilities as of December
31, 2023 were as follow:

 Maturity of Lease Liabilities:

 Lease payable

 Years ended December 31,

 2024

 $
 218,924

 2025

 227,024

 F- 34

 NOTE
19 - CONTINGENT CONSIDERATION LIABILITY

 On
July 19, 2021, Zhejiang Kandi Technologies signed a share transfer agreement and its supplementary agreement ("No.1 Supplementary
Agreement") with the former shareholders of Jiangxi Huiyi (the "Transferors"). On October 31, 2021, the Company completed
the acquisition of 100 % of the equity of Jiangxi Huiyi. Pursuant to the share transfer agreement, the Company paid approximately RMB
 50 million (approximately $ 7.9 million) at the closing of the transaction using cash on hand and, as agreed upon under No.1 Supplementary
Agreement, may be required to pay future consideration of up to an additional 2,576,310 shares of common stock, or the total make good
shares, upon the achievement of certain net income-based milestones in the next three years ("Evaluation Period", as discussed
below). Due to the latest COVID-19 outbreak and extended lockdown in some areas in China, in June 2022, the Company agreed with the Transferors
and jointly signed a No.2 supplementary agreement ("No.2 Supplementary Agreement", collectively with No.1 Supplementary Agreement,
"Supplementary Agreements") to revise the conditions of the annual profit target and extension of evaluation period for the
first year, which were set under No.1 Supplementary Agreement. Pursuant to the No.2 Supplementary Agreement, the Transferors have the
right to obtain 858,770 KNDI shares in each of the below-mentioned periods, provided that Jiangxi Huiyi achieves a net income of 1) RMB
8 million yuan or more during the period from July 1, 2021 to September 30, 2022 ("Period I"); 2) RMB 15 million yuan or
more during the period from October 1, 2022 to September 30, 2023 ("Period II"); 3) RMB 15 million yuan or more during the
period from October 1, 2023 to September 30, 2024 ("Period III"). If the net income of Jiangxi Huiyi fails to reach the respective
target number in any of the three periods, the shares that the Transferors are entitled to obtain in that period will be adjusted accordingly:
1) if the difference between the net income in each Period and its Target Number is less than or equivalent to 20% of its Target Number
(RMB 8 Million in Period I or RMB 15 Million in Period II or Period III), the transferee or KNDI has right to directly subtract 171,754
KNDI shares from the total make good shares, and the Transferor are entitled to obtain 687,016 KNDI shares; 2) if the difference between
the net income in each Period and its Target Number (RMB 8 Million in Period I or RMB 15 Million in Period II or Period III) is more
than 20% of its Target Number but less than 40% of its Target Number, the transferee or KNDI has the right to directly subtract 343,508
KNDI shares from the total make good shares, and the Transferors have the right to obtain 515,262 KNDI shares; 3) if the difference between
the net income in each Period and its Target Number (RMB 8 Million in Period I or RMB 15 Million in Period II or Period III) is greater
than or equal to 40% of its Target Number, the transferee of KNDI has the right to directly subtract 858,770 KNDI shares from the total
make good shares, and the Transferors will not have the right to obtain any shares in such year.

 For
the period from July 1, 2021 to September 30, 2022, Jiangxi Huiyi achieved its net profit target. Accordingly, the Transferors received
 858,770 shares of Kandi's restrictive common stock in October 2023.

 In
2023, after evaluating the actual operation of Jiangxi Huiyi, the Company believes that taking over the management rights and conducting
resources integration to combine Jiangxi Huiyi with the Company's strategy are beneficial for improving the Company's overall
business performance. On August 3, 2023, Zhejiang Kandi Technologies and the Transferors signed an agreement on termination of make good
shares (the "Termination Agreement"), pursuant to which the Supplementary Agreements were terminated. Zhejiang Kandi Technologies
will take over the management rights while the Transferors shall not participate the management of Jiangxi Huiyi, and there was no further
Evaluation Period or make good shares.

 On
November 30, 2023, SC Autosports acquired Northern Group, Inc. ("NGI"), a Wisconsin company, please refer to Note 25 –
Acquisitions for more details.

 On
July 12, 2023, pursuant to the Equity Transfer Agreement, the Company issued a total of 3,951,368 shares of restrictive stock to sole
shareholder of NGI, which are being held in escrow with certain escrow restrictions, to be released contingent upon the achievement of
certain agreed-upon milestones during the escrow period.

 The
Company recorded contingent consideration liability of the estimated fair value of the contingent consideration the Company currently
expects to pay to the Transferors for the achievement of the 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.

 F- 35

 As of December 31, 2023 and December 31,
2022, the Company's contingent consideration liability was $ 2,693,000 and $ 1,803,000, respectively.

 Details
of the contingent consideration liability as of December 31, 2023 and December 31, 2022 were as follow:

 2023

 2022

 Contingent consideration liability to former members of Jiangxi Huiyi

 $
 -

 Contingent consideration liability to former members of NGI

 -

 Total contingent consideration liability

 $

 $

 NOTE
20 - COMMON SHARES

of Equity Securities by the Issuer and Affiliated Purchasers

 On
November 21, 2023, the board of directors had authorized the repurchase of up to $ 30 million worth of the Company's common stock
in open market transactions or in privately negotiated transactions. As of December 31, 2023, the Company had repurchased a total of
 184,566 common shares at an average stock price of $ 2.75
 per share under the repurchase plan.

 Retirement
of Treasury Shares

 On
June 9, 2023, the Board of Directors of the Company approved to retire 3,488,559 shares of its common stock held in treasury,
and the retirement was completed in June, 2023. The shares were returned to the status of authorized but unissued shares. As a part of
the retirement, the Company reduced its common stock and additional paid-in capital by $ 9,807,820.

 Issuance
of Shares

 On
May 25, 2023, the Company entered into a consulting agreement ("Consultant Agreement") with a consulting firm to advise the
Company on business growth and financial advisory services about which this consulting firm has knowledge or experience. Pursuant to
the Consultant Agreement, the Company issued the consulting firm and its designees (the "Consultant") an aggregate of 300,000
restricted shares of the Company's common stock for its services from May 25, 2023 to May 24, 2024.

 For the year ended December 31, 2023, the Company recognized $ 1,083,000 of
expenses for stock issued to the Consultant, respectively.

 On
November 30, 2023, SC Autosports acquired NGI, a Wisconsin incorporated company, please refer to Note 25 – Acquisition for more
details.

 F- 36

 NOTE
21 - STOCK OPTIONS

 On
September 7, 2022, the Compensation Committee of the Board of Directors of the Company approved the grant of stock options to purchase
 5,000,000 shares of the Company's common stock, at an exercise price of $ 2.07 per share, to the Company's senior employees.
The stock options will vest ratably over three years on October 7, 2023, October 7, 2024 and October 7, 2025, respectively, and expire
on the tenth anniversary of the grant date. The Company valued the stock options at $ 6,704,829 and has amortized the stock compensation
expense using the graded vesting method over the service period from September 7, 2022, through October 7, 2025. The value of the stock
options was estimated using the Binomial Tree Model with an expected volatility of 79.83 %, an expected life of 10 years, a risk-free
interest rate of 3.27 % and an expected dividend yield of 0.00 %.

 On
July 1, 2023, the Compensation Committee of the Board of Directors of the Company approved the grant of stock options to purchase 68,019
shares of the Company's common stock, at an exercise price of $ 3.96 per share, to the Company's employees. The stock options
will vest ratably over three years on July 1, 2024, July 1, 2025 and July 1, 2026, respectively, and expire on the tenth anniversary
of the grant date. The Company valued the stock options at $ 172,601 and has amortized the stock compensation expense using the graded
vesting method over the service period from July 1, 2023, to July 1, 2026. The value of the stock options was estimated using the Binomial
Tree Model with an expected volatility of 78.08 %, an expected life of 10 years, a risk-free interest rate of 3.81 % and an expected dividend
yield of 0.00 %.

 The
following is a summary of the stock option activities of the Company:

 Shares

 Weighted
 Average
 Exercise Price

 Outstanding as of December 31, 2021

 900,000

 $
 9.72

 Granted

 5,000,000

 2.07

 Exercised

 -

 -

 Cancelled

 -

 -

 Forfeited

 -

 -

 Outstanding as of December 31, 2022

 5,900,000

 $
 3.24

 Granted

 68,019

 3.96

 Exercised

 ( 1,666,661
)

 2.07

 Cancelled

 -

 -

 Forfeited

 -

 -

 Outstanding as of December 31, 2023

 4,301,358

 $
 3.70

 The fair value of each of the 900,000 options issued to the employees
and directors on May 29, 2015 is $ 8.16 per share option. The fair value of each of the 5,000,000 options issued to the employees on September
7, 2022 is $ 1.34 per share. The fair value of each of the 68,019 options issued to the employees on July1, 2023 is $ 2.54 per share.

 There
were $ 3,476,058 and $ 1,231,566 in stock compensation expenses associated with stock options
booked for the years ended December 31, 2023 and 2022, respectively.

 F- 37

 NOTE
22 - 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 2,500 shares of the Company's common stock every three months, beginning in September 2013.

 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, which shall be issuable evenly on each six-month anniversary hereof. Mr. Lim was entitled to receive 10,000
shares of the common stock per year which shall be issuable evenly on each six-month anniversary as per the renewed contract effective
on May 15, 2023.

 On
January 10, 2023, the Board appointed Dr. Xueqin Dong as the Chief Executive Officer, Dr. Dong was entitled to receive 20,000 shares
of the common stock annually.

 The
fair value of stock awards with service condition is determined based on the closing price of the common stock on the date the shares
are granted. The compensation costs for awards of common stock are recognized over the requisite service period.

 On
May 10, 2022, 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 29, 2023, May 5, 2023 and July 1, 2023 the Company granted 588,019 shares
of common stock to certain management members and employees as compensation for their past services under the 2008 Plan.

 On
March 13, 2023, Kandi Technologies entered into an Equity Incentive Agreement (the "Equity Incentive Agreement") with Pan
Guoqing (the "Receiving Party"), who is the representative of the project management team of the project of crossover golf
carts of Kandi Electric Vehicles (Hainan) Co., Ltd. ("Kandi EV Hainan"), a wholly owned subsidiary of the Company organized
under the laws of the People's Republic of China. The Receiving Party originally led the management team of golf crossover project
of Hainan Kandi Holding New Energy Technology Co., Ltd. ("Hainan Kandi Holding"), a company organized under the laws of the
People's Republic of China. The Receiving Party and its management team has agreed to be employed as management team of Kandi EV
Hainan, responsible for the operation of the golf crossover project of Kandi EV Hainan, and stop production and operation of Hainan Kandi
Holding's business.

to the Equity Incentive Agreement, for the next three calendar years ending in December 31, 2025 (the "Incentive Period"),
the Company will provide equity incentives to the Receiving Party, subject to the Receiving Party meeting certain performance milestones
in its role as the management team of the golf crossover project (the "Crossover Project") of Kandi EV Hainan. The performance
milestones are measured in terms of the net profit of the Crossover Project after deducting relevant operating costs and income taxes,
excluding various incentives, allowances and rebates, among others, and shall be audited and confirmed by the third party auditor designated
by the granting party, or the Company. The net profit target (the "Net Profit Target") for the Incentive Period is RMB
 150 million (approximately $ 21,719,613), with an annual net profit target (the "Annual Net Profit Target") of RMB 50 million
(approximately $ 7,239,871). Should the Receiving Party meet or exceed the Net Profit Target over the Incentive Period, the Company will
issue to the Receiving Party as incentive compensation up to a maximum of 5,957,811 shares (the "Maximum Equity Awards")
of the Company's common stock (the "Award Shares") under the Company's 2008 Omnibus Long-Term Incentive Plan,
as amended (the "2008 Plan"). The amount of Award Shares issued within each calendar year of the Vesting Period is adjusted
based on the net profit of the Crossover Project within that calendar year. If the net profit of every of the three calendar years is
below 60 % of the Annual Net Profit Target, the Receiving Party will receive no Equity Awards. If the net profit of every of the three
calendar years is at or above the Annual Net Profit Target, the Receiving Party will receive the Maximum Equity Awards, with higher performance
resulting in receiving the Equity Awards earlier. If the net profit of every of the three calendar years fall between 60 % of the Annual
Net Profit Target and the Annual Net Profit Target, the Receiving Party will receive an amount of Equity Awards below the Maximum Equity
Awards. On August 28, 2023, both parties agreed to issue 5,957,811 shares ahead of the original timeline due to the good performance
achieved from January to July 2023. These shares are Restricted Shares under the 2008 Plan, to be to be vested upon the achievement of
certain performance targets.

 F- 38

 The
Receiving Party has no relationship to the Company other than as described above.

 On September 18, 2023, the Company issued a
total of 5,957,811 Restricted Shares under the 2008 Plan but have not been vested to the relevant members of the project management
team. For the year ended December 31, 2023, the Annual Net Profit Target of the Crossover Project was met. Accordingly, 1,985,937
shares of Kandi's restricted common stock will be vested to the Receiving Party.

 For
the years ended December 31, 2023 and 2022, the Company recognized $ 6,500,743 and $ 694,810
of employee stock award expenses for stock compensation and annual incentive award under the 2008 Plan paid to Board members, management
under General and Administrative Expenses, respectively.

 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 $ 2,828,934 (RMB 20 million) loan from Shanghai Pudong Development Bank Jinhua
Branch, for a term 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. The settlement was executed
starting from May 2019. 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. According to the current financial situation of NGCL, the Company does not expect it will incur any losses
in connection with this matter.

 (2)
Pledged collateral for bank loans for which the parties other than the Company are the borrowers.

 As
of December 31, 2023 and December 31, 2022, 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.

 F- 39

 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 on 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 sought 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,
that motion was granted in September 2019, and the time to appeal has run. In June 2020, a similar but separate putative securities class
action was filed against Kandi and certain of its current and former directors and officers in California federal court. This action
was transferred to the New York federal court in September 2020, Kandi moved to dismiss in March 2021, and that motion was granted in
October 2021. The plaintiff in this case subsequently filed an amended complaint, Kandi moved to dismiss that complaint in January 2022,
and the motion was granted in part and denied in part in September 2022. Discovery is ongoing as to the remaining claims and defendants.

 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. Discovery is ongoing.

 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 a 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 SLC recommended to
Kandi's board of directors in June 2020 that the SLC be dissolved in light of the ongoing derivative action pending in the Delaware
Court of Chancery, and this recommendation was adopted by the board in August 2020.

 In
December 2020, a putative securities class action was filed against Kandi and certain of its current officers in the United States District
Court for the Eastern District of New York. The complaint generally alleges violations of the federal securities laws based on claims
made in a report issued by Hindenburg Research in November 2020, and seeks damages on behalf of a putative class of shareholders who
purchased or acquired Kandi's securities prior to March 15, 2019. Kandi moved to dismiss in February 2022, and that motion remains
pending.

 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.

 On
September 21, 2023, the SEC filed a settled administrative order (the "Order") against Kandi alleging violations of certain
provisions of the United States' securities laws. The Order sets forth certain findings, which the Company neither admits nor denies,
regarding statements the Company made in its periodic filings and press releases that issued during the years 2020 and 2019. These statements
concerned the Company's then plans to sell highway passenger electric vehicles in the United States. Pursuant to the Order, the
Company agreed to settle and completed the payment of the settlement of $ 710,000 by September 30, 2023.

 F- 40

 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 U.S. The Company does not have manufacturing operations outside of China.

 The
following table sets forth disaggregation of revenue:

 2023

 2022

 Primary geographical markets

 U.S. and other countries/areas

 $
 93,979,363

 $
 65,871,112

 China

 29,619,869

 51,941,937

 Total

 $

 $

 Major products and Services

 $

 $

 -

 Total

 $

 $

 Timing of revenue recognition

 Products transferred at a point in time

 $
 123,359,756

 $

 Sales transactions completed at a point in time

 -

 Total

 $

 $

 F- 41

 NOTE
25 - ACQUISITIONS

 Acquisition
of Northern Group Inc.

 NGI,
a Wisconsin incorporated company that was founded in 2000, has extensive sales experience and sales channels in the United States rooted
in wholesale, retail, supply chain and analytics solutions, including more than 20 team members, 16 major retailers and 20 suppliers
and brands.

 On
November 30, 2023, the Company, through SC Autosports, completed the acquisition of NGI pursuant to certain equity transfer agreement
SC Autosports entered into with the owner of NGI to acquire 100 % equity of NGI. The Company acquired all the equity interests of NGI
for a purchase price of $ 13 million, in form of the Company's restricted shares to the Transferors. The Company shall issue
a total of 3,951,368 restricted shares (which is calculated as the Transfer Value divided by the average closing price of the Company's
stock for the twenty trading days prior to June 1, 2023, i.e., $ 3.29 per share) of common stock, par value $ 0.001 (the "KNDI Stock")
of the Company to the Transferor, holding in escrow pending the satisfaction of the Profit Targets agreed upon.

 On
July 12, 2023, pursuant to the Equity Transfer Agreement, the Company issued a total of 3,951,368 shares of restrictive stock to sole
shareholder of NGI, which are being held in escrow with certain escrow restrictions, to be released contingent upon the achievement of
certain agreed-upon milestones during the escrow period.

 Pursuant to the terms of the Equity Transfer Agreement and the Supplementary
Agreement, dated as of March 12, 2024, the escrow restrictions on the KNDI Stock shall be removed sequentially based on the following conditions: 1) when NGI achieves
pretax income of $4.6 million or more ("Profit Target I") during the period from December 1, 2023 to November 30, 2024, 2,431,612
shares of KNDI Stock Transferor holds shall be fully vested by removing the escrow restriction. Notwithstanding the above, the Transferor,
on December 31, 2023, can apply for vesting certain number of shares, but no more than 1,418,440 shares, with its value equal to the actual
amount of pre-tax income achieved hereinunder (for example: if the pre-tax income is $3.5 million, 1,063,830 shares (3,500,000/3.29=1,063,830)
shall be fully vested and without escrow restriction); 2) when NGI achieves pretax income of $5.25 million or more ("Profit Target
II") during the period from December 1, 2024 to November 30, 2025, 759,878 shares of KNDI Stock Transferor holds shall be fully
vested by removing its escrow restriction; and 3) when NGI achieves pretax income of $6 million or more ("Profit Target III",
collectively with Profit Target I, and Profit Target II, "Profit Targets") during the period from December 1, 2025 to November
30, 2026, 759,878 shares of KNDI Stock Transferor holds shall be fully vested by removing the escrow restriction. If NGI fails to reach
any of the Profit Targets in any period as mentioned above, the number of KNDI Stock to be removed escrow restriction in that period shall
be adjusted based on the percentage of the actual achieved pretax income. If there is any loss incurred in that period, the Transferor
shall assume the loss.

 As of the acquisition date, the Company recorded a contingent consideration
liability of approximately $ 2.7 million, representing the estimated fair value of the contingent consideration the Company currently expects
to pay to the NGI Transferors upon the achievement of certain Profit Targets aforementioned. The fair value of the contingent consideration
liability associated with 3,951,368 shares of restrictive common stock was estimated by using 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 Operations and Comprehensive Income (Loss).

 F- 42

 The
components of the preliminary purchase price as of the acquisition date for NGI are as follows:

 NGI

 Fair value of contingent consideration

 $

 Total

 $

 The
Company accounted for the acquisition as business combinations, in accordance with ASC Topic 805. The Company has recorded the assets
acquired and liabilities assumed at their respective fair values as of the acquisition date. The following summarizes the preliminary
purchase price allocations:

 NGI

 Goodwill

 $
 1,139,438

 Amortizable intangible assets

 1,030,000

 Other net assets

 523,562

 Total

 $

 Transaction
costs of $ 45,267 associated with the acquisition were expensed as incurred through general and administrative expenses in the statement
of income in 2023.

 The
Company allocated the preliminary purchase price to specific intangible asset categories as of the acquisition date for NGI as follows:

 Amount
 Assigned

 Estimated
 useful life
 (in years)

 Amortizable intangible assets:

 Customer relation

 $
 1,030,000

 The
Company allocated the preliminary purchase price to specific intangible assets for patents that the Company acquired. The Company believes
that the estimated intangible asset value so determined represents the fair value on the date of acquisition and do not exceed the amount
a third party would pay for the assets. The Company used the asset based approach to derive the fair value of the amortizable intangible
assets. These fair value measurements are based on significant unobservable inputs, including estimates and assumptions and, accordingly,
are classified as Level 3 within the fair value hierarchy prescribed by the ASC Topic 820.

 The
Company recorded the excess of the purchase price over the estimated fair values of the identified assets as goodwill, which is non-deductible
for tax purposes. Goodwill was established due to primarily to revenue and earnings projections associated with NGI's future operations,
as well as synergies expected to be gained from the integration of the business into the Company's existed operations.

 The Company's condensed consolidated financial statements included
approximately $ 0.2 million of revenue and approximately $ 6,641 of operating income related to the operating results for NGI from its date
of acquisition.

 The following unaudited pro forma financial information presents the
combined results of operations of Kandi and the Acquired Business as if the acquisition had occurred as of January 1, 2023. The pro forma
information is not necessarily indicative of what the financial position or results of operations actually would have been had the acquisition
been completed as of January 1, 2023. In addition, the unaudited pro forma financial information is not indicative of, nor does it purport
to project, the future financial position or operation results of Kandi. The unaudited pro forma financial information excludes acquisition
and integration costs and does not give effect to any estimated and potential cost savings or other operating efficiencies that could
result from acquisition. For the year ended December 31, 2023, the unaudited pro forma combined statements of income information consists
of the revenue with $ 127,578,305, loss from operations with $ 12,544,014 and net income with $ 2,177,924.

 NOTE
26 - SUBSEQUENT EVENT

 During
January and February of 2024, the Company had repurchased a total of 540,362 common shares at an average stock price of $ 2.74 per share
under the repurchase plan.

 F- 43

 Item
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

 None.

 Item
9A. Controls and Procedures.

 (a) Evaluation
of Disclosure Controls and Procedures

 The
Company is required to disclose in reports that are filed or submitted under the Securities Exchange Act of 1934, as amended (the "Exchange
Act") is: (i) recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and (ii) accumulated
and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely
decisions regarding disclosure.

 The
Company has evaluated, under the participation of the Company's Chief Executive Officer and the Chief Financial Officer, the effectiveness
of disclosure controls and procedures as of December 31, 2023. Based on our evaluation, we concluded that the Company's disclosure
controls were effective as of December 31, 2023. In designing and evaluating the disclosure controls and procedures, the Company's
management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance
of achieving the desired control objectives, and the Company's management necessarily was required to apply its judgment in evaluating
the cost-benefit relationship of possible controls and procedures.

 (b) Management's
Annual Report on Internal Control Over Financial Reporting

 Our
management is responsible for establishing and maintaining adequate internal control over financial reporting ("ICFR") as
defined in Rules 13a-15(f) and 15d-15(f) under Exchange Act. The Company's ICFR is designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP.

 The
Company's ICFR includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that receipts
and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's
assets that could have a material effect on the consolidated financial statements.

 All
internal control systems, no matter how well designed, have inherent limitations, so that no evaluation of controls can provide absolute
assurance that all control issues are detected. Also, projections of any evaluation of effectiveness to future periods are subject to
the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate. Therefore, any current evaluation of controls cannot and should not be projected to future periods.

 Management
conducted an assessment of the effectiveness of our system of ICFR as of December 31, 2023, the last day of our fiscal year of 2023.
This assessment was based on criteria established in Internal Control—Integrated Framework, issued by the Committee of Sponsoring
Organizations of the Treadway Commission ("COSO") in 2013 (the "2013 COSO Framework") and included an evaluation
of elements such as the design and operating effectiveness of key financial reporting controls, process documentation, accounting policies,
and our overall control environment. Based on management's evaluation under the 2013 COSO Framework, management concluded that
the Company's internal controls over financial reporting were effective as of December 31, 2023 based on those criteria.

 We
reviewed the results of management's assessment with the Audit Committee of our Board of Directors.

 Our
independent registered public accounting firm, ARK Pro CPA & Co, has audited the effectiveness of our ICFR as of December 31, 2023
as stated in their report which is attached to the auditors' reports included under item 8 of this report.

 (c) Changes
in Internal Control Over Financial Reporting

 There
was no change to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that
occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.

 Item
9B. Other Information.

 Except
as set forth in NOTE 26 - SUBSEQUENT EVENT under Item 8. Financial Statements and Supplementary Data, our management is currently not
aware of any other information that would have a significant effect on the Company's results of operation or financial statements.
For the detailed discussion of other information that may materially influence the Company's results of operation of financial
statements, please refer to NOTE 26 - SUBSEQUENT EVENT under Item 8. Financial Statements and Supplementary Data, which is incorporated
by reference herein.

 Trading Plans

 During the fiscal quarter ended December 31,
2023, none of our directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement"
or a "non-Rule 10b5-1 trading arrangement", as those terms are defined in Regulation S-K, Item 408.

 Item
9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

 None.

 PART
III

 Item
10. Directors, Executive Officers and Corporate Governance

 The
following table sets forth certain information regarding our executive officers and members of the Company's board of directors
(the "Board of Directors") as of March 10, 2024:

 Name

 Age

 Position

 Served
 From

 Hu
 Xiaoming

 Chairman
 of the Board

 June
 2007

 Lim
 Jehn Ming

 Chief
 Financial Officer

 May
 2020

 Chen
 Liming (1),(2),(3)

 (Independent)

 May
 2012

 Lin
 Yi (2),(3)

 (Independent)

 May
 2017

 Jerry
 Lewin (1)

 (Independent)

 November
 2010

 Henry
 Yu (1),(2),(3)

 (Independent)

 July
 2011

 Dong
 Xueqin (4)

 Chief
 Executive Officer, President, Director

 December
 2021

 Wang
 Lin

 December
 2019

 (1)
 Member
of Audit Committee

 (2)
 Member
of Compensation Committee

 (3)
 Member
of Nominating and Corporate Governance Committee

 (4)
 Dr.
Dong Xueqin has been appointed to be the Chief Executive Officer of the Company effective January 10, 2023.

 Business
Experience of Directors and Executive Officers

 Biographical
Information

 Hu
Xiaoming was appointed as our Chief Executive Officer, President and Chairman of the Board in June 2007. Prior to joining the
Company, from October 2003 to April 2005, Mr. Hu served as the Project Manager (Chief Scientist) in the WX Pure Electric Vehicle Development
Important Project of Electro-vehicle in the State 863 Plan. From October 1984 to March 2003, Mr. Hu served as: (i) Factory Director of
the Yongkang Instrument Factory, (ii) Factory Director of the Yongkang Mini Car Factory, (iii) Chairman and General Manager of the Yongkang
Vehicle Company, (iv) General Manager of the Wan Xiang Electric Vehicle Developing Center and (v) the General Manager of the Wan Xiang
Battery Company. Mr. Hu personally owned four invention patents and seven utility model patents, which he transferred to the Company
in fiscal year 2012. He resigned to be our Chief Executive Officer and President effective January 9, 2023. Mr. Hu remains being Chairman
of the Board.

 Dong
Xueqin was appointed as our Chief Executive Officer and President effective January 10, 2023. Mr. Dong has served as a director of
the Company since December 2021. He received a Doctor Engineering degree in Vehicle Engineering from Shanghai Tongji University. Dr.
Dong has rich practical experience and extensive knowledge and expertise in the fields of automotive engineering, automotive safety and
others. He has successively served as the General Manager of Jiangsu Xingchi Electric Power Technology Co., Ltd, the Deputy General Manager
of Jiangsu Yixing Vehicles Co., Ltd, the General Manager of Yijue Automobile (Shanghai) Co., Ltd, the Deputy General Manager of business
department of Automobile Design and Research Institute Co., Ltd. of Shanghai Tongji University, and the R & D Engineer of Jiangling
Automobile Co., Ltd. In addition, Mr. Dong has also participated in multiple technology R & D projects, including the research and
development of Class AO small urban pure electric vehicle, and test, evaluation and standard technology related to whole electric vehicle
and its parts as well as infrastructures in the "863" Project of China Ministry of Science and Technology; safety technology
of electric vehicles in typical crash mode in the Project of Shanghai Bureau of Quality and Technical Supervision;
and so on. Furthermore, he has published 11 papers on automobile and electric vehicle engineering technology. Mr. Dong also owns 18 utility
model patents, 2 invention patents and 1 appearance design patent.

 Jehn
Ming Lim has extensive experience in providing financial accounting and advisory services to public and private companies and has
been engaging in this profession for more than 15 years. He was the Chief Financial Officer of Takung Art Co., Ltd. (NYSE American: TKAT)
from February 2019 to May 2020. Prior to that, he had been the managing director of Albeck Financial Services, a financial consulting
firm from January 2013 to February 2019, mainly responsible for overseeing SEC reporting, GAAP technical consultation, financial statement
audit preparation, due diligence and internal controls compliance services. He also has extensive experience in auditing private and
public companies in his stints as audit manager and senior auditor of two regional accounting firms in the United States, i.e., Kabani
& Company, Inc. from October 2008 through December 2012 and Stonefield Josephson, Inc. from September 2006 through October 2008,
respectively and as an auditor at Ernst & Young in the United States from September 2004 through to July 2006. Mr. Lim graduated
with High Honors from the University of California, Santa Barbara, with a Bachelor of Arts degree in Business Economics.

 Wang
Lin was appointed as a director of the Company in December 2019. Ms. Wang has been serving as Chief Financial Officer Assistant
of the Company since June 2015. Before joining the Company, Ms. Wang served as Fund Accountant of State Street Technology (Zhejiang)
Co., Ltd. from December 2014 to June 2015. At the Company, Ms. Wang is responsible for the preparation of consolidated financial statements
in accordance with the U.S. GAAP standards, and the preparation of SEC reports, including the Annual Reports on Form 10-K and the Quarterly
Reports on Form 10-Q. Ms. Wang has knowledge of the basic U.S. GAAP standards and SEC regulations. She is also familiar with the culture
and business process of the Company. Mastering good communication and coordination skills, Ms. Wang also has financial management experience
of U.S. listed companies. Ms. Wang received her Bachelor degree in Finance from Zhejiang Gongshang University in 2011 and received her
Master degree in Accounting from Hofstra University in 2014.

 Lin
Yi was appointed as a director of Kandi on May 4, 2017. He has extensive experience in automotive engineering and multi-body
system dynamics research. Throughout his career, he has been awarded numerous high-ranking national science and technology rewards. He
served several key senior roles in academic and industrial organizations and was given Special Government Allowances from the State Council
in 1992. Additionally, he was named an "Expert of China's Machinery Industry" in 1995 and elected to the "Outstanding
Young Science Talents in China's Automobile Industry" in 1998. From 2007 to 2015, he served as a deputy chief engineer at
Beijing Automotive Group Co., Ltd., as an executive director of Beijing Automotive New Energy Vehicle Co., Ltd., and as the executive
vice president of Beijing Automotive Research Institute. Prior to that, he was a part-time professor at Beijing University of Technology,
Beijing University of Aeronautics and Astronautics, Institute of Electrical Engineering at China Academy of Sciences, Shanghai Jiaotong
University, and Hunan University. He was appointed as the dean of Automotive Engineering at Jilin University of Technology in 1996 and
remained in that position until 2000.

 Jerry
Lewin was appointed as a director of the Company in November 2010. Jerry Lewin became Senior Vice President of Field Profitability
Globally of Hyatt Hotels Corporation in January of 2015. In his new responsibilities he and his team are to move the company forward
with new initiatives to be the best operator in the Hospitality Industry. Prior to this promotion, he served as Senior Vice President
of Field Operations for Hyatt Hotels Corporation and is responsible for managing the hotels in North American continent. Mr. Lewin has
been with Hyatt since 1987. In his past capacity as Senior Vice President of Operation Lewin supervised a number of areas, including
finance, sales and marketing, public relations, customer service, engineering, and human resources. Lewin serves as a member of the Hyatt
Hotels Corporation's Managing Committee and sits on the board of directors of the New York City Hotel Association. Since July 2009,
Mr. Lewin has served as a director of several companies in the past. Lewin currently serves as the President of the New York Law Enforcement
Foundation and as the President of the NY State Troopers PBA Signal 30 Fund. Mr. Lewin has served in various management capacities for
several hotel companies in San Francisco, Oakland, Los Angeles, San Diego and Las Vegas. Mr. Lewin received his Bachelor of Science degree
from Cornell University and completed the Executive Development Program at J.L. Kellogg Graduate School of Management at Northwestern
University.

 Henry
Yu was appointed as a director of the Company on July 1, 2011. In October of 2015, Henry joined Asian Investors Consortium as
an Executive Director. Asian Investors Consortium of Asia invests in projects in Greater China and in Asia Pacific. Henry is also a Senior
Advisor to ChinaPlus Capital Ltd of Shanghai, a company that focuses on bridging US/China business. Yu, a seasoned banker of about 34
years, has had an excellent banking career covering domestic banking and global business. He was Managing Director of the Global Financial
Institutions of Fifth Third Bank from 2012-September of 2015. Previous affiliation included Bank of America in HK, Comerica Bank, National
City Bank, SunTrust Bank, Standard Chartered Bank China, and East West Bank. Henry is a well-rounded banker having been involved in Investment
Banking, Commercial and International Multinational Lending, Treasury Management, Credit Administration, Compliance, Foreign bank relationship
management, Trade Finance, and Global Supply Chain. From 2003 through 2007, Yu held Series 7 and 62 Certification from the Financial
Industry Regulatory Authority. Henry Yu is also an avid volunteer promoting U.S./China and U.S./Emerging Markets business relationships
and transactions. Through Henry's 25 plus years of coverage on Emerging Markets, Asia, and in particular Greater China, he is a
frequent speaker and lecturer on Asian/U.S./China business to universities in Georgia (Emory University, Georgia Tech, Georgia State
University, Kennesaw State University, Georgia Perimeter College), and universities in China, namely Sichuan University, Suzhou Institute,
Jiliang University, and Jinan University. Henry chairs the Advisory Board of the National Association of Chinese-Americans, and is a
member of the Global Commerce Council of the Metro Atlanta Chamber. A believer in education and mentorship, Henry sits on the Asian Studies
Board of Kennesaw State University, a member of Georgia State University's China Task Force, and Trustee of Georgia Perimeter College's
Foundation Board. Henry is also President of the Hong Kong Association of Atlanta, and works closely with the NYC Office of the HK Economic
& Trade Office in NYC. Henry received his BA degree in Economics in 1978 from the University of Michigan and MBA in Finance from
the University of Detroit in 1980.

 Chen
Liming was appointed as a director of the Company on May 1, 2012. Mr. Chen serves as an advisor to AA Wind & Solar Energy
Development Group, LLC. Prior to his current position, from February 2009 to October 2010, Mr. Chen participated in a joint venture with
Mr. Qiu Youmin, the former designer of Geely Automobile Co., Ltd., and assisted in the development of super mini three seat pure electric
vehicles. From June 2008 to July 2009, he participated in the development of Lithium Iron Phosphate Battery with Shanghai Yuankai Group.
Mr. Chen served as a Professor of Electrical Engineering at Zhejiang University from 1983 to 1997. In addition, Mr. Chen served as a
visiting scholar in the Electrical Engineering Department at Columbia University in New York City from 1981 to 1983 and as a professor
in Electrical Engineering at Zhejiang University from 1960 to 1981. Mr. Chen received his bachelor degree from Southeast University in
Jiangsu, China in 1960.

 Family
Relationships

 No
family relationships existed among any of our directors or executive officers.

 Board
Diversity

 The
Nominating and Corporate Governance Committee does not have a formal policy with respect to diversity. However, the Board of Directors
and the Nominating and Corporate Governance Committee believe that it is essential that the members of the Board of Directors represent
diverse viewpoints. In considering candidates for the Board of Directors, the Board of Directors and the Nominating and Corporate Governance
Committee consider the entirety of each candidate's credentials in the context of the factors mentioned above. The Company is currently
in compliance with the diversity requirements of Nasdaq Rule 5605(f) and 5606, with one female Asian directors, five male Asian director
and one male White director.

 Board
Diversity Matrix (As of March 10, 2024)

 Total
 Number of Directors

 Female

 Male

 Non-Binary

 Did
 Not

 Disclose

 Gender

 Part
 I: Gender Identity

 Directors

 Part
 II: Demographic Background

 African
 American or Black

 Alaskan
 Native or Native American

 Asian

 Hispanic
 or Latinx

 Native
 Hawaiian or Pacific Islander

 White

 Two
 or More Races or Ethnicities

 LGBTQ+

 Did
 Not Disclose Demographic Background

 Audit
Committee Financial Expert

 Our
Audit Committee currently consists of Henry Yu (Chairman), Jerry Lewin and Chen Liming, each of whom is independent under NASDAQ listing
standards. Our Board of Directors determined that each of Mr. Yu and Mr. Lewin qualifies as an "audit committee financial expert,"
as defined by Item 407 of Regulation S-K and NASDAQ Rule 5605(a)(2). In reaching this determination, the Board of Directors made a qualitative
assessment of Mr. Yu's and Mr. Lewin's level of knowledge and experience based on a number of factors, including formal education
and business experience.

 Code
of Ethics

 We
have adopted a "Code of Ethics" as defined by regulations promulgated under the Securities Act of 1933, as amended, and the
Exchange Act that applies to all of our directors and employees, including our principal executive officer, principal financial officer
and principal accounting officer. A current copy of our "Code of Business Conduct and Ethics" is included as exhibit 14.1
to our annual report on Form 10-K filed on March 16, 2015. A copy of our "Code of Business Conduct and Ethics" will be provided
to you without charge upon written request to Dong Xueqin, Chief Executive Officer, Kandi Technologies Group, Inc., Jinhua City Industrial
Zone, Jinhua, Zhejiang Province, People's Republic of China, 321016. You may also access these filings at our web site under the
investor relations link at

 Section
16(A) Beneficial Ownership Reporting Compliance

 Section
16(a) of the Securities Exchange Act of 1934 requires that the Company's directors and executive officers and persons who beneficially
own more than ten percent (10%) of a registered class of its equity securities, file with the SEC reports of ownership and changes in
ownership of its common stock and other equity securities. Executive officers, directors, and beneficial owners of greater than ten percent
(10%) of a registered class of the Company's equity securities are required by SEC regulation to furnish the Company with copies
of all Section 16(a) reports that they file. Based solely upon a review of the copies of such reports furnished to us or written representations
that no other reports were required, the Company believes that, during fiscal year 2023, all filing requirements applicable to its executive
officers, directors, and greater than ten percent (10%) beneficial owners were met, except for the following: (i) Hu Xiaoming, Wang Lin
and Dong Xueqin did not timely file there Form 4s after being granted 50,000, 2,000 and 20,000 shares on June 15, 2023, respectively,
their Form 4s have been filed on July 13, 2023; (ii) Henry Yu did not timely file Form 4s after being granted 5,000 shares and 5,000
shares on February 2, 2023 August 1, 2023. (iii) Jerry Lewin did not timely file Form 4s after being granted 5,000 shares and 5,000 shares
on February 2, 2023 and August 1, 2023.

 Item
11. Executive Compensation

 Summary
Compensation Table

 The
following table summarizes the compensation earned during the years ended December 31, 2023 and 2022, by the individuals who served as
our Chief Executive Officer and Chief Financial Officer during any part of fiscal year 2023 or any other executive officer with total
compensation in excess of $100,000 during fiscal year 2023. The individuals listed in the table below are referred to as the "named
executive officers".

 Salary

 Bonus

 Stock Awards

 Option Awards

 Non-Equity Incentive Plan Compensation

 Nonqualified Deferred Compensation Earnings

 All Other Compensation

 Total

 Name and Principal Position

 Year

 ($)

 ($)

 ($)(4)

 ($)

 ($)

 ($)

 ($)

 ($)

 Hu Xiaoming (1)

 2023

 $
 51,522

 -

 $
 156,500

 -

 -

 -

 -

 $
 208,022

 Chairman of the Board

 2022

 $
 53,505

 -

 $
 122,500

 -

 -

 -

 -

 $
 176,005

 Dong Xueqin (2)

 CEO and President

 2023

 $
 70,694

 -

 $
 59,600

 -

 -

 -

 -

 $
 130,294

 Lim Jehn Ming (3)

 2023

 $
 120,000

 -

 $
 26,870

 -

 -

 -

 -

 $
 146,870

 CFO

 2022

 $
 120,000

 -

 $
 18,540

 -

 -

 -

 -

 $
 138,540

 (1)
 Mr.
Hu was appointed as CEO and President of the Company on June 29, 2007. He resigned to be CEO and President of the Company effective January
9, 2023.

 (2)

 Dr. Dong Xueqin has been appointed to be the Chief Executive Officer of the Company effective January 10, 2023. He has served as a director of the Company since December 2021.

 (3)
 Mr.
Lim was appointed as the Company's CFO, effective May 15, 2020.

 (4)
 The
amounts in this column reflect the aggregate grant date fair value under FASB ASC Topic 718 of awards made during the respective year.

 Salary
and Incentive Compensation

 In
fiscal 2023, the primary components of our executive compensation programs were base salary and equity compensation.

 Salary

 We
use base salary to fairly and competitively compensate our executives, including the named executive officers, for the jobs we ask them
to perform. We view base salary as the most stable component of our executive compensation program, as this amount is not at risk. We
believe that the base salaries of our executives should be targeted at or above the median of base salaries for executives in similar
positions with similar responsibilities at comparable companies, consistent with our compensation philosophy. At the end of the year,
each executive's performance is evaluated by our Compensation Committee, which takes into account the individual's performance,
responsibilities of the position, adherence to our core values, experience, and external market conditions and practices.

 Incentive
Compensation

 We
believe it is a customary and competitive practice to include an equity-based element of compensation to the overall compensation package
for our named executive officers. We believe that a significant portion of the compensation paid to our named executive officers should
be performance -based and therefore at risk. Awards made are granted under the Kandi Technologies Group, Inc. Omnibus Long-Term Incentive
Plan (the "Plan").

 At
our 2008 annual shareholders meeting, our stockholders approved the adoption of the Plan.

to Pre-Approved Award Grant Sub-Plan approved by the Board of Directors on December 30, 2013 and modified on July 25, 2014, if the Non-GAAP
net income in one year increases by 10% compared with the previous year, the total of 335,000 shares of the common stock from the Plan
(as disclosed in details in the next paragraph below) to be granted to certain employees (management of the Company is authorized to
determine list of employees and stock amount rewarded based on position adjustment of employees, performance and tenure of each employee
in that year) will be granted for that year; if the Non-GAAP net income in one year is less than the Non-GAAP net income in the previous
year, then no stock will be granted in that year; if the Non-GAAP net income in one year is 10% less than or 10% more than the Non-GAAP
net income in the previous year, then the stock grant amount will decrease or increase according to the Non-GAAP net income decrease
or increase percentage, but the total amount rewarded may not be over 200%.

 On
May 20, 2015, the shareholders of the Company approved an increase of 9,000,000 shares under the Plan at its annual meeting. The fair
value of each award granted under the Plan is determined based upon the closing price of the Company's stock on the date of the
grant. To the extent that the performance goal is not met and so no shares become due, no compensation cost is recognized and any recognized
compensation cost during the applicable year is reversed. The number of shares of common stock granted under the Plan with respect to
fiscal 2014 was 670,000 shares based on the Non-GAAP Net Income of 2014. Compensation expense is recognized in General and Administrative
Expenses. On April 23, 2015 and June 7, 2015, the Company granted 550,000 shares and 120,000 shares, respectively, to the senior management
and key employee as year 2014 performance awards. On April 13, 2016, the Company granted 670,000 shares to the senior management and
key employee as year 2015 performance awards. In February 2017, the Board of Directors authorized the Company to grant 246,900 shares
to a list of management members as compensation for their past services pursuant to Section 11 of the Company's 2008 plan. On September
26, 2016, the Board approved the termination of the previous Board's Pre-Approved Award Grant Sub-Plan under the 2008 Plan and
adopted a new plan to reduce the total number of shares of common stock of the stock award for select executives and key employees from
335,000 shares of common stock to 250,000 shares of common stock for each fiscal year and the other terms were as same as before. There
was no grant under the Board's Pre-Approved Award Grant Sub-Plan in the years of 2017 to 2021.

 On
May 29, 2015, the Compensation Committee of the Board of Directors of the Company approved the grant of stock options to purchase 4,900,000
shares of common stock at an exercise price of $9.72 per share to the Company's senior executives. The stock options will vest
ratably over three years and expire on the tenth anniversary of the grant date. As of December 31, 2023, 3,000,000 shares have been exercised,
and 1,000,000 shares have been forfeited.

 On
September 7, 2022, the Compensation Committee of the Board of Directors of the Company approved the grant of stock options to purchase
5,000,000 shares of the Company's common stock, at an exercise price of $2.07 per share, to the Company's senior employees.
The stock options will vest ratably over three years on October 7, 2023, October 7, 2024 and October 7, 2025, respectively, and expire
on the tenth anniversary of the grant date. As of December 31, 2023, 1,666,661 shares have been exercised.

 On
July 1, 2023, the Compensation Committee of the Board of Directors of the Company approved the grant of stock options to purchase 68,019
shares of the Company's common stock, at an exercise price of $3.96 per share, to the Company's employees. The stock options
will vest ratably over three years on July 1, 2024, July 1, 2025 and July 1, 2026, respectively, and expire on the tenth anniversary
of the grant date.

 The
granted stock option to the directors and officers are as below:

 Name

 stock options

 Hu Xiaoming

 900,000

 Outstanding
Equity Awards at 2023 Fiscal Year End

 The
following table sets forth information regarding all unexercised, outstanding equity awards held, as of December 31, 2023, by those individuals
who served as our named executive officers during any part of fiscal year 2023.

 Name

 Securities
 underlying
 Unexercised
 Exercisable

 Securities
 underlying
 Unexercised
 Options(#)
 Unexercisable

 Equity
 Incentive
 Plan

 Awards:
 Securities
 Underlying
 Unexercised
 Unearned
 Options
 (#)

 Option
 Exercise
 Price
 ($)(1)

 Option
 Expiration
 Date

 Shares
 or Units
 of Stock
 That Have
 Not Vested
 (#)

 Market
 Value of
 Shares or
 Units of
 Stock That
 Have Not
 Vested
 ($)

 Awards:
 Unearned
 Shares,
 Units or
 Other
 Rights
 That Have

Not
 Vested
 (#)

 Market or
 Payout
 Value of
 Unearned
 Shares,
 Units or
 Other
 Rights
 That Have

Not Vested

($)

 Hu Xiaoming

 $
 900,000

 $
 -

 $
 -

 $
 9.72

 5/28/2025

 $
 -

 $
 -

 $
 -

 $
 -

 (1)

 The
 grant date fair value of each share of common stock option is $9.72, calculated in accordance with FASB Topic 718.

 Employment
Agreements

 Zhejiang
Kandi Technologies has a five-year-term employment agreement with Mr. Hu, expiring June 9, 2028. The agreement provides an annual salary
for Mr. Hu with bonuses to be decided at the discretion of our Board at the year end. Such employment agreement is filed as Exhibit 10.2 herein.

 On
May 15, 2023, the Company and Mr. Lim entered into a three-year-term employment agreement, pursuant to which Mr. Lim shall receive an
annual salary in the amount of $120,000. He will also receive 10,000 shares of the common stock under the Company's 2008 Omnibus
Long-Term Incentive Plan, which shall be issuable evenly on each six-month anniversary hereof or as otherwise determined by the Board
of Directors. Such employment agreement is filed as Exhibit 10.31 herein.

 On
January 10, 2023, the Company and Dr. Dong entered into a three-year-term employment agreement, pursuant to which Dr. Dong shall
receive an annual salary in the amount of RMB500,000 (approximately $70,000). He will also receive 20,000 shares of the common stock
under the Company's 2008 Omnibus Long-Term Incentive Plan. Such employment agreement is filed as Exhibit 10.30 herein.

 Potential
Payments Upon Termination or Change of Control

 Under
Chinese law, we may only terminate employment agreements without cause and without penalty by providing notice of non-renewal one month
prior to the date on which the employment agreement is scheduled to expire. If we fail to provide this notice or if we wish to terminate
an employment agreement in the absence of cause, as defined in the agreement, then we are obligated to pay the employee one month's
salary for each year we have employed the employee. We are, however, permitted to terminate an employee for cause without penalty pursuant
to the employee's employment agreement. If the named executive officer is not terminated for cause, the Company will pay the remaining
portion of the executive officer's salary.

Compensation (excluding Named Executive Officers)

 The
following table sets forth certain information regarding the compensation earned by or awarded during the 2023 fiscal year to each of
our non-executive directors:

 Name

 Fees Earned
 or Paid
 in Cash
 ($)(2)

 Stock Awards
 ($)(1)(2)

 Option Awards
 ($)

 Non-Equity
 Incentive Plan
 Compensation
 ($)

 Nonqualified
 Deferred
 Compensation
 Earnings

 All Other
 Compensation
 ($)

 Total
 ($)

 Lin Yi

 $
 8,483

 -

 -

 -

 -

 -

 $
 8,483

 Henry Yu

 $
 24,000

 18,100

 -

 -

 -

 -

 $
 42,100

 Jerry Lewin

 $
 24,000

 26,500

 -

 -

 -

 -

 $
 50,500

 Chen Liming

 $
 8,483

 -

 -

 -

 -

 -

 $
 8,483

 Wang Lin

 $
 32,519

 6,260

 -

 -

 -

 -

 $
 38,779

 $
 57,969

 59,600

 -

 -

 -

 -

 $
 117,569

 (1)

 The amounts in these columns represent the aggregate grant date fair
value of stock awards granted to our non-named executive officer directors during the fiscal year ended December 31, 2023, in accordance
with ASC Topic 718. In connection with his appointment to the Board of Directors in July 2011, the Board of Directors authorized the Company
to issue to Mr. Yu 5,000 shares of Company's restricted common stock every six months, par value $0.001. The closing stock price
at the grant date is $1.81 per share. Similarly, in August 2011, the Board of Directors authorized the Company to issue to Mr. Lewin 5,000
shares of Company's restricted common stock every six months, par value $0.001. The closing stock price at the grant date is $2.65
per share. As of December 31, 2023, 120,000 shares of restricted common stock had been issued to Mr. Lewin and Mr. Yu, respectively.

 (2)

 In
 setting director compensation, we consider the significant amount of time that directors spend fulfilling their duties to the Company,
 as well as the skill level required to serve as a director and manage the affairs of the Company. Certain directors receive a monthly
 fee as follows: (i) Lin Yi receives a monthly fee of RMB5,000 (approximately $740) starting May 2017; (ii) Jerry Lewin receives a
 monthly fee of $2,000; (iii) Henry Yu receives a monthly fee of $2,000; and (iv) Chen Liming receives a monthly fee of RMB 5,000
 (approximately $740) starting 2014.

 The
aggregate number of stock options and restricted shares outstanding, as of December 31, 2023, for each of the non-named executive officer
directors were as follows:

 Name

 Options

 Restricted
 stock

 Henry Yu

 120,000
 (1)

 Chen Liming

 Lin Yi

 Jerry Lewin

 120,000

 Wang Lin

 (1)
 Besides
 the 120,000 shares of restricted common stock, Mr. Yu owns additional 23,510 shares of the
 Company's common stock that he purchased from the open market.

 Item
12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 The following table sets forth information known to us, as of March
8, 2024, relating to the beneficial ownership of shares of common stock by each person who is known by us to be the beneficial owner of
more than five percent (5%) of the outstanding shares of common stock; each director; each executive officer; and all executive officers
and directors as a group. We believe that all persons named in the table have sole voting and investment power with respect to all shares
of common stock shown as being owned by them. The applicable percentages of ownership are based on an aggregate of 87,358,234 shares of
our Common Stock outstanding on March 8, 2024. Unless indicated otherwise, the mailing address of each beneficial owner is Jinhua New
Energy Vehicle Town, Jinhua City, Zhejiang Province, China 321016.

 Title of Class

 Name of Beneficial Owner

 Amount and

 Nature of

 Beneficial

 Ownership

 Percent of

 Class

 Named Executive Officers and Directors

 Hu Xiaoming

 14,426,481
 (1)

 16.51
 %

 Jehn Ming Lim

 1,500

 *

 Henry Yu

 148,510

 *

 Jerry Lewin

 125,000

 *

 Chen Liming

 -

 -

 Lin Yi

 -

 -

 20,000

 -

 Wang Lin

 11,000

 *

 All officers and directors

 14,732,491

 16.86
 %

 Other 5% Stockholders:

 Excelvantage Group Limited(3)

 12,821,404
 (2)

 14.68
 %

 *

 Less
 than 1%

 (1)
 Includes
 (i) 1,605,077 shares owned directly by Mr. Hu, (ii) 12,821,404 shares owned by Excelvantage
 Group Limited. As reflected in footnote 2, Mr. Hu may be deemed to be the beneficial owner
 of these shares.

 (2)

 On
 March 29, 2010, Hu Xiaoming, our Chairman of the Board of Directors, previous Chief Executive Officer, and President, became the
 sole stockholder of Excelvantage Group Limited. Through his position as the sole stockholder in Excelvantage Group Limited, Mr. Hu
 has the power to dispose of or direct the disposition of the shares of the common stock in Excelvantage Limited Group. As a result,
 Mr. Hu may, under the rules of the Securities and Exchange Commission, be deemed to be the beneficial owner of the shares of common
 stock.

 (3)

 Based
 solely on the Schedule 13G filed by Invesco Ltd filed with the SEC on February 10, 2022.

 Item
13. Certain Relationships and Related Transactions, and Director Independence.

 Transactions
with Related Parties

 Effective
March 14, 2022, Mr. Hu Xiaoming transferred his 50% equity interests of Kandi New Energy to Zhejiang Kandi Technologies for $2.83 million
(RMB 18 million, equal to the subscribed capital contributed by Mr. Hu Xiaoming to Kandi New Energy) according to the Share Transfer
Agreement signed on March 7, 2022 between Zhejiang Kandi Technologies and Mr. Hu Xiaoming. As a result, Kandi New Energy has become a
wholly-owned subsidiary of Zhejiang Kandi Technologies. Upon the closing of the transfer, all the pre-existing agreements between the
Company and Mr. Hu Xiaoming regarding the entitlement of 100% of the economic benefits, voting rights and residual interests are all
terminated.

 Procedures
For Approval of Related Party Transactions

 According
to the Company policy on Related-Party Transactions (the "Policy"), a "Related Transaction" is "any transaction,
includes, but not limited to, any financial transaction, arrangement, relationship (including any indebtedness or guarantee of indebtedness)
or any series of similar transactions, arrangements or relationships, since the beginning of the Company's last fiscal year, or
any currently proposed transaction, and the amount involved exceeds $120,000, and in which any related party had or will have a direct
or indirect material interest". The Policy's definition of a "Related Party" is in line with the definition set
forth in the instructions to Item 404(a) of Regulation S-K promulgated by the SEC.

 Under
the Policy, the Company's proposed material related transaction with related persons shall be submitted to the Board for consideration
and discussion after an independent director presents his/her approval opinion beforehand. The Audit Committee shall conduct an audit
on the related-party transaction and prepare a written opinion, and can engage independent financial advisers to issue a report as a
basis for its judgment, then submit it to the Board. The Policy states that the Board meeting can be held as long as non-affiliated directors
making up a majority of the Board attend, and any resolution made by the Board must be approved by a majority of non-affiliated directors.

Independence

 Messrs.
Henry Yu, Chen Liming, Lin Yi and Jerry Lewin are all non-employee directors, all of whom our Board has determined to be independent
pursuant to NASDAQ rules. All of the members of our Audit Committee, Nominating/Corporate Governance Committee and Compensation Committee
are independent pursuant to NASDAQ rules.

 Item
14. Principal Accounting Fees and Services.

 The
following table represents the aggregate fees from our current and previous principal accounting firm, ARK Pro CPA & Co and Kreit
& Chiu CPA LLP for the years ended December 31, 2023 and 2022, respectively.

 2023

 2022

 Audit Fees

 $
 360,000

 $
 410,000

 Audit Related Fees

 $
 -

 $
 -

 Tax Fees

 $
 -

 $
 -

 All other fees

 $
 89,071

 $
 5,600

 TOTAL FEES

 $
 449,071

 $
 415,600

 Audit
Fees — This category includes the audit of our annual financial statements and services that are normally provided by the independent
auditors in connection with engagements for those fiscal years.

 Audit-Related
Fees — This category consists of assurance and related services by the independent auditors that are reasonably related to
the performance of the audit or review of our financial statements and are not reported above under "Audit Fees".

 Tax
Fees — This category consists of professional services rendered by the Company's independent registered public accounting
firm for tax compliance and tax advice. The services for the fees disclosed under this category include tax return preparation and technical
tax advice.

 All
Other Fees — This category consists of fees for other miscellaneous items.

 Pre-Approval
Policies and Procedures

 All
of the services rendered to us by our independent registered public accountants were pre-approved by the Audit Committee.

 PART
IV

 Item
15. Exhibits, Financial Statement Schedules.

 Exhibit

 Number

 2.1

 Share Exchange Agreement, dated June 29, 2007, by and among Stone Mountain Resources, Inc., Continental Development Limited and Excelvantage Group Limited. [Incorporated by reference from Exhibit 2.1 to the Company's Current Report on Form 8-K filed on July 6, 2007]

 3.1

 Certificate of Incorporation. [Incorporated by reference from Exhibit 3.1 to Form SB-2 filed by the Company on April 1, 2005]

 3.2

 Certificate For Renewal and Revival of Charter dated May 27, 2007. [Incorporated by reference from Exhibit 3.2 to the Company's Registration Statement on Form S-3 dated June 20, 2014]

 3.3

 Certificate of Amendment of Certificate of Incorporation. [Incorporated by reference from Exhibit 4.2 to the Company's Form S-3, dated November 19, 2009; File No. 333-163222]

 3.4

 Certificate of Amendment of Certificate of Incorporation. [Incorporated by reference from Exhibit 3.1 to the Company's Form 8-K, dated December 21, 2012]

 3.5

 Bylaws. [Incorporated by reference from Exhibit 3.2 to Form SB-2 filed by the Company on April 1, 2005]

 4.1

 Description of Securities Registered Pursuant to Section 12 of the Exchange Act. [Incorporated by reference from Exhibit 4.5 to the Company's Annual Report on Form 10-K filed on March 15, 2022]

 10.1

 Form of
 the Director Agreement [Incorporated by reference from Exhibit 10.1 to the Company's Annual Report on Form 10-K filed on March
 16, 2015]

 10.2

 Employment Agreement by and between the Company and Hu Xiaoming

 10.3

 Kandi Technologies, Corp. 2008 Omnibus Long-Term Incentive Plan [Incorporated by reference from Appendix A to the Company's Definitive Schedule 14A filed on November 24, 2008]

 10.4

 Amendment No. 1 to Kandi Technologies, Corp. 2008 Omnibus Long-Term Incentive Plan [Incorporated by reference from Exhibit A to the Company's Definitive Schedule 14A filed on April 10, 2015]

 10.5

 Amendment No. 2 to Kandi Technologies, Corp. 2008 Omnibus Long-Term Incentive Plan [Incorporated by reference from Appendix A to the Company's Definitive Schedule 14A filed on November 16, 2018]

 10.6

 English Translation of the Share Transfer Agreement by and between Zhejiang Kandi Technologies Group Co., Ltd. and Mr. Wang Xinhuo dated December 12, 2017 [Incorporated by reference from Exhibit 10.18 to the Company's Annual Report on Form 10-K filed on March 16, 2018]

 10.7

 English Translation of the Supplementary Agreement by and between Zhejiang Kandi Technologies Group Co., Ltd. and Mr. Wang Xinhuo dated December 12, 2017 [Incorporated by reference from Exhibit 10.19 to the Company's Annual Report on Form 10-K filed on March 16, 2018]

 10.8

 Membership Interest Transfer Agreement of Sportsman Country, LLC by and between David Shan, Johnny Tai and Kandi Technologies Group, Inc. dated May 31, 2017 (Bilingual) [Incorporated by reference from Exhibit 10.15 to the Company's Annual Report on Form 10-K filed on March 15, 2019]

 10.9

 Equity Transfer Agreement by and between Zhejiang Kandi Technologies Group Co., Ltd. and Geely Technology Group Co., Ltd., dated March 21, 2019 [Incorporated by reference from Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on May 10, 2019]

 10.10

 English translation of the land repurchase agreement for the Jinhua premise, dated as of March 10, 2020, by and between Zhejiang Kandi Technologies Group Co., Ltd. and Administrative Committee of Jinhua Economic and Technological Development Zone.* [Incorporated by reference from Exhibit 10.16 to the Company's Annual Report on Form 10-K filed on April 28, 2020]

 10.11

 Employment Agreement by and between the Company and Jehn Ming Lim dated as of May 15, 2020 [Incorporated by reference from Exhibit 10.1 to the Company's Current Report on Form 8-K filed on May 21, 2020]

 10.12

 Form of Securities Purchase Agreement in connection with the Registered Direct offering closed on November 12, 2020 [Incorporated by reference from Exhibit 10.1 to the Company's Current Report on Form 8-K filed on November 10, 2020]

 10.13

 Placement Agent Agreement in connection with the Registered Direct offering closed on November 12, 2020 [Incorporated by reference from Exhibit 10.2 to the Company's Current Report on Form 8-K filed on November 10, 2020]

 10.14

 Form of Securities Purchase Agreement in connection with the Registered Direct offering closed on November 23, 2020 [Incorporated by reference from Exhibit 10.1 to the Company's Current Report on Form 8-K filed on November 20, 2020]

 10.15

 Placement Agent Agreement in connection with the Registered Direct offering closed on November 23, 2020 [Incorporated by reference from Exhibit 10.2 to the Company's Current Report on Form 8-K filed on November 20, 2020]

 10.16

 Equity Transfer Agreement by and between Zhejiang Kandi Technologies Group Co., Ltd. and Geely Technology Group Co., Ltd., dated February 18, 2021. [Incorporated by reference from Exhibit 10.22 to the Company's Annual Report on Form 10-K filed on March 30, 2021]

 10.17

 English Translated Version of the Transfer Agreement Between Mr. Hu and Zhejiang Kandi Technologies Group Co., Ltd. Regarding the 50% Equity Interests Transfer in the VIE Dated March 7, 2022. [Incorporated by reference from Exhibit 10.23 to the Company's Annual Report on Form 10-K filed on March 15, 2022]

 10.18

 English Translation of the Share Transfer Agreement by and between Zhejiang Kandi Technologies Group Co., Ltd. and Shareholders of Jiangxi Province Huiyi New Energy Co., Ltd. dated July 13, 2021. [Incorporated by reference from Exhibit 10.1 to the Company's Current Report on Form 8-K filed on July 19, 2021]

 10.19

 English Translation of the Supplementary Agreement by and between Zhejiang Kandi Technologies Group Co., Ltd. and Shareholders of Jiangxi Province Huiyi New Energy Co., Ltd. dated July 13, 2021. [Incorporated by reference from Exhibit 10.2 to the Company's Current Report on Form 8-K filed on July 19, 2021]

 10.20

 English Translation of the Equity Incentive Agreement by and among the Company and certain receiving parties, dated March 13, 2023. [Incorporated by reference from Exhibit 10.26 to the Company's Annual Report on Form 10-K filed on March 16, 2023]

 10.21

 Equity Transfer Agreement by and between SC Autosports, LLC and Olen Rice. [Incorporated by reference from Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on August 8, 2023]

 10.22

 English Translation of the Agreement on Termination of the Make Good Shares by and between Zhejiang Kandi Technologies Group Co., Ltd and the Former Shareholders of Jiangxi Province Huiyi New Energy Co., Ltd dated August 3, 2023. [Incorporated by reference from Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed on August 8, 2023]

 10.23

 Supplementary Agreement to Equity Incentive Agreement on Project of Crossover Golf Carts by and between Kandi Technologies Group, Inc. and Project Management Team of Kandi Electric Vehicles (Hainan) Co., Ltd. [ Incorporated by reference from Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on November 8, 2023 ]

 10.24

 Employment Agreement between the Company and Dong Xueqin.

 10.25

 Employment Agreement between the Company and Jehn Ming Lim

 10.26

 Supplementary Agreement to the Equity Transfer Agreement of Northern Group, Inc. by and between SC Autosports, LLC And Olen Rice

 14.1

 Code of Business Conduct and Ethics. [Incorporated by reference from Exhibit 14.1 to the Company's Annual Report on Form 10-K filed on March 16, 2015]

 21.1

 List of Subsidiaries

 23.1

 Consent of ARK Pro CPA & Co.

 31.1

 Certification of CEO pursuant to Rule 13a-14 under the Securities Exchange Act of 1934.

 31.2

 Certification of CFO pursuant to Rule 13a-14 under the Securities Exchange Act of 1934.

 32.1

 Certifications of CEO and CFO pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 97.1

 Compensation Recovery Policy of Kandi Technologies Group, Inc.

 101.INS

 101.SCH

 101.CAL

 101.DEF

 101.LAB

 101.PRE

 Exhibits filed herewith.

 *
 Certain portion of the exhibit has been omitted in accordance
with the provisions of Item 601(b)(2)(ii) of Regulation S-K.

 SIGNATURES

to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act"), the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 KANDI
 TECHNOLOGIES GROUP, INC.

 March

 By:

 /s/

 Dong
 Xueqin

 President
 and Chief Executive Officer

to the requirements of the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.

 /s/

 President
 and Chief Executive Officer

 March

 Dong
 Xueqin

 (Principal
 Executive Officer) & Director

 /s/
 Jehn Ming Lim

 Chief
 Financial Officer

 March

 Jehn
 Ming Lim

 (Principal
 Financial Officer and

 Principal
 Accounting Officer)

 /s/
 Hu Xiaoming

 Chairman
 of the Board

 March

 Hu
 Xiaoming

 /s/
 Chen Liming

 March

 Chen
 Liming

 /s/
 Lin Yi

 March

 Lin
 Yi

 /s/
 Jerry Lewin

 March

 Jerry
 Lewin

 /s/
 Henry Yu

 March

 Henry
 Yu

 /s/
 Wang Lin

 March

 Wang
 Lin

 false FY 0001316517

 2023-06-30

 2024-03-08

 kndi: JinhuaKandiNewEnergyVehiclesCoLtdMember

 kndi: MrHuXiaomingMember

 kndi: MrHuXiaomingMember

 kndi: KandiNewEnergyToZhejiangKandiTechnologiesMember

 2022-03-14

 kndi: YongkangScrouMember

 2012-04-30

 kndi: FengshengAutomotiveTechnologyGroupCoLtdMember

 2021-02-18

 2013-04-01
 2013-04-30

 kndi: KandiNewEnergyMember

 2013-04-01
 2013-04-30

 2017-12-31

 kndi: SCAutosportsMember

 2018-05-31

 kndi: SupplyChainMember

 2019-03-04
 2019-03-04

 2019-03-04

 kndi: RuihengMember

 kndi: JiangxiHuiyiMember

 2021-07-13

 kndi: KandiHainanAndJiangsuXingchiMember

 kndi: JiangsuXingchiMember

 2023-06-17

 kndi: PRCSubsidiariesMember

 kndi: USSubsidiariesMember

 kndi: MrHuXiaomingMember

 2022-03-14
 2022-03-14

 kndi: KandiNewEnergyMember

 kndi: HainanKandiHoldingMember

 kndi: HainanKandiHoldingMember
 kndi: JiangsuXingchiMember

 kndi: HainanKandiHoldingMember

 2022-03-14

 kndi: OneToNineZeroDaysMember

 kndi: NineOneToOneEightZeroDaysMember

 kndi: OverOneEightZeroDaysMember

 us-gaap: AgingOfCapitalizedExploratoryWellCostsPeriodOneMember

 us-gaap: AgingOfCapitalizedExploratoryWellCostsPeriodTwoMember

 kndi: OneToNineZeroDaysMember

 kndi: NineOneToOneEightZeroDaysMember

 kndi: OverOneEightZeroDaysMember

 us-gaap: AgingOfCapitalizedExploratoryWellCostsPeriodOneMember

 us-gaap: AgingOfCapitalizedExploratoryWellCostsPeriodTwoMember

 us-gaap: BuildingMember

 us-gaap: BuildingMember

 us-gaap: MachineryAndEquipmentMember

 us-gaap: OfficeEquipmentMember

 us-gaap: VehiclesMember

 us-gaap: ToolsDiesAndMoldsMember

 kndi: ParentIncludingNonVIESubsidiariesMember

 srt: ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember

 srt: ConsolidationEliminationObligorGroupMember

 us-gaap: ConsolidatedEntitiesMember

 kndi: ParentIncludingNonVIESubsidiariesMember

 kndi: VIEMember

 srt: ConsolidationEliminationsMember

 us-gaap: ConsolidatedEntitiesMember

 kndi: PercentageOfOfVIEsAssetsAndLiabilitiesInConsolidatedAssetsAndLiabilitiesMember

 us-gaap: ConsolidatedEntityExcludingVieMember

 kndi: MajorCustomerMember
 us-gaap: SalesRevenueNetMember

 kndi: MajorCustomerMember
 us-gaap: SalesRevenueNetMember

 us-gaap: SalesRevenueNetMember
 kndi: MajorSuppliersMember

 us-gaap: SalesRevenueNetMember
 kndi: MajorSuppliersMember

 kndi: ZhejiangKandiMember

 us-gaap: SalesMember

 kndi: CustomerBMember
 us-gaap: SalesMember

 kndi: CustomerBMember

 kndi: CustomerBMember

 kndi: CustomerCMember
 us-gaap: SalesMember

 kndi: CustomerCMember

 kndi: CustomerCMember

 us-gaap: SalesMember

 2021-01-01

 kndi: PurchasesMember

 us-gaap: AccountsPayableMember

 us-gaap: AccountsPayableMember

 kndi: PurchasesMember

 us-gaap: AccountsPayableMember

 2021-01-01

 us-gaap: OptionMember

 us-gaap: WarrantMember

 us-gaap: OptionMember

 us-gaap: OptionOnSecuritiesMember

 us-gaap: WarrantMember

 kndi:offroadsMember

 kndi: SCAutosportsMember

 2024-01-03

 2024-01-05

 2024-01-30

 us-gaap: NotesReceivableMember

 us-gaap: BuildingMember

 us-gaap: BuildingMember

 us-gaap: MachineryAndEquipmentMember

 us-gaap: OfficeEquipmentMember

 us-gaap: VehiclesMember

 kndi: MouldsMember

 kndi: MouldsMember

 us-gaap: PatentsMember

 us-gaap: PatentsMember

 us-gaap: PatentsMember

 us-gaap: PatentsMember

 us-gaap: TechnologyEquipmentMember

 us-gaap: TechnologyEquipmentMember

 us-gaap: TechnologyEquipmentMember

 us-gaap: TechnologyEquipmentMember

 us-gaap: CustomerRelationshipsMember

 us-gaap: CustomerRelationshipsMember

 us-gaap: CustomerRelationshipsMember

 us-gaap: CustomerRelationshipsMember

 kndi: HainanMember

 kndi: HainanMember

 kndi: HainanMember

 kndi: HainanMember

 kndi: JiangxiFacilityMember

 kndi: JiangxiFacilityMember

 kndi: CorporationIncomeTaxMember

 kndi: HainanKandiHoldingMember

 srt: SubsidiariesMember

 kndi: PRCHongKongAndUSMember

 kndi: PRCHongKongAndUSMember

 kndi: PrcMember

 kndi: PrcMember
 kndi: HNTETreatmentMember

 kndi: HighAndNewTechnologyEnterpriseMember

 kndi: HighAndNewTechnologyEnterpriseMember

 kndi: PrcMember

 kndi: PrcMember

 kndi: NonPRCMember

 kndi: NonPRCMember

 2020-10-31
 2020-10-31

 kndi: JiangxiHuiyiMember

 2022-09-30
 2022-09-30

 kndi: RestrictiveStockMember

 2023-07-12

 kndi: JiangxiHuiyiMember

 kndi: JiangxiHuiyiMember

 2023-11-21

 srt: BoardOfDirectorsChairmanMember

 2023-06-09
 2023-06-09

 2023-05-25
 2023-05-25

 srt: BoardOfDirectorsChairmanMember
 us-gaap: StockOptionMember

 srt: BoardOfDirectorsChairmanMember

 us-gaap: StockOptionMember

 2015-05-29
 2015-05-29

 2015-05-29

 2023-07-31
 2023-07-31

 2023-07-31

 us-gaap: StockOptionMember

 kndi: MrHenryYuMember

 kndi: MrJerryLewinsMember

 kndi: MsKewaLuosMember

 kndi: MrJehnMingLimMember

 2020-05-15
 2020-05-15

 kndi: MrJehnMingLimMember

 2023-05-15
 2023-05-15

 kndi: DrXueqinDongMember

 2023-01-10
 2023-01-10

 kndi: ManagementMembersAndEmployeesMember

 2022-05-10
 2022-05-10

 kndi: ManagementMembersAndEmployeesMember

 2023-04-29
 2023-04-29

 kndi: ManagementMembersAndEmployeesMember

 2023-05-05
 2023-05-05

 kndi: ManagementMembersAndEmployeesMember

 kndi: EquityIncentiveAgreementMember

 2023-08-28
 2023-08-28

 kndi: ProjectManagementTeamMember
 kndi: RestrictedSharesMember

 2023-09-18
 2023-09-18

 2023-09-18
 2023-09-18

 2023-03-15
 2023-03-15

 kndi: ShanghaiPudongDevelopmentBankMember

 2017-04-30

 2023-09-30

 kndi: PrimaryGeographicalMarketsMember
 country: US

 kndi: PrimaryGeographicalMarketsMember
 country: US

 kndi: PrimaryGeographicalMarketsMember
 country: CN

 kndi: PrimaryGeographicalMarketsMember
 country: CN

 kndi: EvPartsMember

 kndi: EvPartsMember

 kndi: EVProductsMember

 kndi: EVProductsMember

 us-gaap: VehiclesMember

 us-gaap: VehiclesMember

 kndi: ElectricScootersAndElectricSelfBalancingScootersMember

 kndi: ElectricScootersAndElectricSelfBalancingScootersMember

 kndi: BatteryExchangeEquipmentAndBatteryExchangeServiceMember

 kndi: BatteryExchangeEquipmentAndBatteryExchangeServiceMember

 kndi: LithiumionCellsMember

 kndi: LithiumionCellsMember

 kndi: TimingOfRevenueRecognitionMember
 kndi: ProductsTransferredAtAPointInTimeMember

 kndi: TimingOfRevenueRecognitionMember
 kndi: ProductsTransferredAtAPointInTimeMember

 kndi: TimingOfRevenueRecognitionMember

 kndi: TimingOfRevenueRecognitionMember

 2023-11-30

 kndi: RestrictedSharesMember

 kndi: RestrictedSharesMember

 2023-07-12

 kndi: RestrictiveCommonStockMember

 srt: ProFormaMember

 2024-02-28
 2024-02-28

 2024-02-28

 2023-10-01

 utr:sqm

 kndi: Segment