Why Kandi Technologies (KNDI) Is Soaring on Monday

Updated to include information regarding SEC investigation.

NEW YORK (TheStreet) -- Kandi Technologies (KNDI) is popping on Monday after reporting revenue and earnings growth in its fourth quarter.

By market open, shares had added 24.3% to $21.57.

China-based Kandi posted a 92.2% year-over-year increase in revenue to $50.6 million.

The company which develops electrical vehicles (EV) and all-terrain vehicles said its EV sales segment achieved 193.7% gains to $40 million in the three months to December.

Adjusted net income of $4.6 million was nearly 259% higher year over year from $1.3 million in the fourth quarter 2012.

Full-year revenue grew 46.5% year over year to $94.5 million.

"For full year 2013, we achieved our expectations for revenue growth, including that almost 50% of total revenue came from EV sales. We expect this growth momentum will carry well into 2014," said chairman and CEO Xiaoming Hu in a statement.

In its 10-K filing with the SEC, the company also noted that it has been a part of an SEC investigation since November. If lengthy, Kandi said it will have a significant impact on its financial position. 

"A protracted investigation could impose substantial costs and distractions, regardless of its outcome. There can be no assurance that any final resolution of this investigation will not have a material and adverse effect on the company's financial condition and results of operations," the company said in the filing. 

Reasons for the SEC's investigation were not disclosed. 

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