Q2 2020 Kandi Technologies Group Inc Earnings Call

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Welcome to the Vivek Conference Center next available conference specialist will be with you momentarily.

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Welcome to the Vivek Conference Center next available conference specialist will be with you momentarily.

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Welcome to the Vivek Conference Center next available conference specialist will be with you momentarily.

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Welcome to the Vivek Conference Center next available conference specialist will be with you momentarily.

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First thing David last name around.

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And whats conferences is for claims.

Kandi technologies.

Oh place filling in for Candy one moment please.

Thank you.

Yeah, So what else is how much you're right.

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So these are the sound that you can be.

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I need to see me, which outcomes on chicken.

Seem and can call Chaco can you wouldn't I'm doing well make jump in on this as you say you may feel.

Hello.

Oh.

Well I guess, you Oh Hello, everyone welcome.

Joining us on the coffee, though.

I think Kobe, Nigel when and if they close calls and working on our second quarter business results why that's exactly what else you full point $1 million in pockets.

Gross margin increased slightly to influence your quick question, 17.4% in Santiago talking I told you.

Indeed, Nike cool wet and will position that's your bounce back <unk>, okay and aggressive effort.

Well second quarter I'll offer was on population for the online car hailing business and in the South imaging was made meaningful progress Indeed Elliott.

First all fully automatic.

In college and pass badly <unk> system was delivered to the Rice you. All played out in HEICO City August 720, 20 insulation has been completed and there will be could ensure try oscillation shortly with strong support from the government Boundless watch station all classified as infrastructure.

Construction in China first time.

I think that all fully automated smartly, we placed in that well be viewed favorably by the market and to drive the sales all electric vehicle.

Second our American wholly owned subsidiary assay all the sports made significant progress on preparing to launch any sale and I say, well, maintaining well off road vehicles.

We were excited to announce that all virtual launch will take place August 18 to pick all pre sale, which will be a key milestones in the company's history.

I sat technology innovator Kandi is committed to provide high quality products with great woman and affordable price.

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So pretty we're not yet but yeah.

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So you're not your children yeah tissue.

And then some base, we doll and then what does that I wouldn't be Tricia.

Let's now turn to the question relating to some time, our CFO Mr. Alan Lane will answer your question directly English and so al has joined US over a short time. If there was no question. He is not able to answer you well will translate and I will give you.

Operator. Please proceed.

Thank you.

Second question today, you May press Star one from your telephone keypad and a confirmation tone indicate your line is and the question Q.

You mean fresh start to view like to move your questions from the Q.

For physicians are using speaker equipment, it may be necessary to pick up your handset before pursuing the sarkies.

One moment, please while we pull for questions.

Thank you.

Our first question comes from the line of Walter Hill was Corning Company. Please proceed with your question.

Last quarters conference call.

MPR Mr., who said quote.

As this business is developing quickly we will consider merging yarn carrying scrounge and gen y. encode into a single specialized powertrain technology company and evaluate the possibility of raising capital in China's capital market to fund growth the raising capital.

China is capital market to fund growth was eye catching my questions since the company borrowed money all the time for Mr. Hu to specifically bring up capital markets to future growth. It would seem he is talking about.

Of raising equity for the joint.

Subsidiaries with either a private equity round or IPO for the combined subsidies or both.

If so it would seem a perfect way to unlock hidden value in that such a combination of the two subs good in his.

Hot market be valued at up to a billion dollars in a first round private equity financing. If in fact, a 300000 candy E. B program with Aimcos QB X is underway and the hangs out Chick Hoverboards program is underway with Yongkang sgro.

This new combined high Tech company would look like a natural listing on the new Shanghai Technology Star stock exchange.

Where by the way leadership is in a process of co listing deeply.

Oh.

Hi, everyone first of all it's my pleasure to everyone on a core today.

As for the questions I'll first before we have we named at June <unk> and colleagues to a judge on candies, what smart battery swap technology coming that limited.

In the second quarter and of course, where we continue to include the Yongkang scroll under its name.

That's the question Oh, we're actually evaluating the possibility and the auction off yeah. Both management companies what at least that on does science and technology innovation Board or Oh, we won't get explored the possibility of any of the private equity investments at the moment, we have to exploring options and the pop possibilities.

When there's any plans, Florida, well probably announce to everyone.

Thank you.

Welcome.

Thank you. The next question is from the line of Fred Brasher with clean Tech. She was your question.

Thank you.

We have had a lot of information out on Candy America with the upcoming U.S. virtual release of the K 23, and K 27, well all of these cleared it can't be has a 100% interest indicate 23 sales decay 27 seems to be very similar to a.

<unk> that he's made by candy partner in the 300000.

He be government equation ride hailing company Jinping.

It's this is the same E D or it has been modified by candy from the original didn't pay model. If so we'll keep you working with Jinping.

Oh and other models.

Also just what is it that jinping is responsible for in that 300000 E. B program. Thank you.

Hello.

Hello, I'm sorry.

So thank you for questions.

So I'll ask their questions first of all K 23 had the U.S. versions and that domestic car hailing person in China.

And as for a second question what that you know Gee, if I can walk in any automotives and it's actually that the K 27, U.S. versions isn't more though it's developed by us in the cooperation with Jinping.

And with the lift as to our cooperation posted soda, that's a possibility or co pay with gene paying to develop our them autos.

This obviously, it's not out.

So and therefore, the second question about the roll up to impair first before Jim Penn has more than 2000 dealers in third and fourth appear China, our cities across the country in China.

So in our 300000 electric vehicle plan.

Jinping will mainly use is even the resources to jointly promote the project. So basically we are utilizing the network and we sort of jinping.

Thank you.

Welcome.

Our next questions from the line of my life with Oppenheimer. Please proceed with your question.

Good morning, Thanks for the question regarding financials from the filings. It appears a candy did collect some 32 million as the first payment in Q2 from the June while government for the sale of Candies 18 years held gene while legacy facility facility leasing.

In some 42 million still owed candy from Gen Y. Gen y.

Also it appears uli still owes skills candy, some 26 million <unk> million from candies JV equity sale, but he said.

Do you expect to receive the balance owed anyone food from each by year end.

Thank you for questions.

That's a good progress of the two payments you comp you mentioned first before on July nine 2027, 20, handy, we see a second payment I can take approximately 70 million U.S. dollars from the Gaufman under the repurchase agreement as for the relocation arch in June hostilities in.

Additions.

As for the payment from GE Lee on July 27. This year, we have received all of the remaining equity transfer payments from Chile, We just roughly 26 million U.S. dollar and so far off the equity transfer funds has been we feel we see from Chile.

So it's all been settled.

Okay. Thanks does fangsheng still owe candy for parts provided during the JV and if so how much.

It does because what company can be continues to provide the parts and components to found some was that the daily operations as of June 30 of 2020 year.

I would say for both on phone so related to the supply is about 20 million U.S. dollar.

Okay and then my last question. Thank you for your time also if my math is correct. It appears that the Gen Y. facility being sold to the government is carried on candies books at a depreciated price of less than 7 million. So if correct when close based on a much appreciate it to 76 million.

And sell price sales.

Candy would book a huge pretax pretax GAAP profit of over a dollar share on this transaction alone.

Can you address my guesstimate on this and also which quarter do you anticipate this'll wistful officially close and be booked.

Your calculation is basically correct Oh, we actually recognized the amount in accordance with U.S. GAAP.

Mainly based on that degree of the completion of how we execute the contract.

Actually as of June Thirtyth, that's again caught up this year, we recognized starting point Ninemillion U.S. dollar in the game from the disposal of such assets.

It's based on the.

The land we between two to come onto the government is about 73000 square meters of that brownfield land and it's approximately 21% of the latest right. We are we talking from the colder plant.

So we remain important up again he is expected to be recognized in the first quarter 2021, that's a time when we expect to complete the agreement and the relocation process.

Thank you very much.

Thank you.

Our next question is from the line of Mark can now with Swiss liquid future. Please proceed with your question.

Yes, Hello Tech. Thank you for taking my call.

My question has to do with candies wholly owned shop on cows trick century exchange chickens before I was happy to see didn't the recent PR of what appears to be distrust state of candidates attentive Taria rytary, 92nd battery swap system, which is unique and that it can also allow roadside emergency.

In Sito mobile slow in five minutes due to the battery location Clearag readers.

Good morning time generous of Candy. This announcement was chicken triggered to a series of potentially UGI rents kicking off.

Previously announced it shows for government accredited Candide initiated right healing five Eursix billion plus program.

For third and fourth tier cities in China early this year Candy had announced two different billion dollars that can.

Apartments in this program Jin Yan review and keeping me.

Multi part of my multi pack this years.

Well since costs must be included and deal, but not the now can you tell us how many catering industries are involved in this single transaction and appropriately Proximities Cadtwenty three sales price.

And is this the launched after five years 6 billion plus 300000 TV program.

Society.

So it is yes is it the launch of our five year 300000 electric vehicle plan.

So I can be will cooperate with John ruble and gene panel to build an online tar hailing platform and we strive to invest 300000, Chad electric vehicles in the next five years.

The platform, we're actually purchased no less than 56000, K 23 electric vehicles from Candy in the next five years.

The price is approximately RMB 90000 per vehicle, excluding subsidies from the government.

Okay. Yeah. Thank you and my second question is Dan.

It is understood that Candice attended 92nd Cubic's unit.

Our modular and therefore somewhat portable how long does it takes to set up and for move it almost touching unit.

So our smart better exchange system achieved one click battery exchange in 90 seconds. Each system occupies an area about 50 square meters and he can meet the 18 surveys of over 280 to electric vehicles everyday.

Okay. Good thank you and Master Christian would then be how many additional costs and stations can do you expect this year and what are the revenues Cubic's unit four candy.

Well since the project just started in the second half of the year or the number of the cost and the stage and this will not be significant but it's definitely the direction of appreciate development you know could promote.

As for the revenue from the Q Pdx unit.

Please take a Robert upcoming financial reports with the out because we we incurred.

Okay. Thank you.

And can count custom design and shell cubic stations for other manufacturers and Barry set ups.

Yes, our smart that there is what system has purchased the more than 20 patents and a number copyrights, but then also seasons, mainly provide such systems to the power swap companies is that.

Very good and then my last question rich.

Other than selling the lease and cubic stations have tended participant in any other revenues shoes.

Of the affiliated with review and you think.

Yes, apart from the streams, you mentioned candy will own a small share in the company, which operates the car hailing platform.

So then we will have a small shop the revenue from that operation as well.

Well the council very promising and.

Big numbers for the future. Thank you for taking my questions and we look forward Juicy next quarters coming through and different.

Thank you.

Thank you.

Thank you as a reminder, you me press Star one to ask a question. The next question is from the line of Mark Miller. Please proceed with your question.

Hi, Thanks for taking my call them from the last conference call Mr., who stated recently.

We have been in discussions with streaming shied away from pronouncements named CEO and show.

She intelligent technology, leading hi Tech company that is well recognized as a major exporter in intelligence balance scooters sector.

We have agreed to have candy to start using its powertrain system to produce balance scooters.

For this company.

And she has accumulated more than 500 technical patents in the balance scooter sector and its originator originator of the balance scooter products.

Oh last year candy announce at one of its subsidiaries.

Beyond case rule of thumb pronouncing it correctly initiated a relationship with de GL Walmarts largest hi tech trying to buyer.

Right up to 71 million in Hoverboards for their premium hovered one brand.

Which consumer reports called the second most demanded Christmas gifts last year.

Some small portion that deal was booked by candy in quarter four.

But as addressed in the last conference call due to the.

Covert 19, the business was curtailed.

However, at the time Mr., who felt that this was still a viable order for later this year.

As the virus abates.

Can we get some update on the stage ill deal.

And could Mr., who also give us a better feel for the.

Hi child sheet deal.

And what it could mean for candy.

And then one more specifically just what is candy providing for hung chose she.

All right it making the whole hoverboards or just the motors and how.

Big in the steel become thank you.

Thank you very questions.

So as far the.

Grim of DG, though the order of the Geo has resumed production in July.

And we expect that that deal can be complete by the end of this year with about 300000 units to be complete by the end of the year.

So your second question one Joe Cig has begun to use the motors produced by scroll and a better packs produced by.

These model better exchange, which is formally coaching and Carl.

After the project sort it out the Endo said was expected to exceed over 50 500 million RMB.

What was booked a in quarter four would number two we have there.

Oh, the 71 million.

Well guess will currently we're always working on the plan and I guess up their quarter for paid out will be released doing a lot in financials for 10 20.

Okay, but I'm, saying, what do you see a small portion of the deal was booked but Canada in quarter four do we have a number here that was actually.

So we booked in sales.

From last year.

Yes, a small portion of this does what spoke but I think we can refer to the financials of last year for better details.

Okay.

Alright. Thanks, Thank you Sir thanks for your help.

Thank you Sir.

Thank you.

Next question is from the line of Arthur Porcari with corporate strategies.

Good morning, Mr. Hu and.

So it looks like sounds like we have our new Chief financial Officer onboard welcome aboard.

Some of this included a long time to have someone they could interact on these conference calls away you are.

I'm going to be a little bit long now because.

Preference by question by saying I am a long retired brokerage firm founder and Candy investor.

I'd never she received any compensation whatsoever from Cantor Geely or other management I get accuse for all the time on the job boards. So I want to put this on the record in front of the company in the last decade I've visited candy in China twice, along with publishing over 50 articles on the company.

Based on the massive new interesting candy I want to preference my question today with background on an area outside the U.S. AG sales that alone should justify a much higher priced today than what she did a good somebody monetize.

So I'll move on here can he has been a partner with Geely holdings wholly owned by leasing through a top five wealthiest in China, Oh since 2013 [noise].

It is controlling ownership and Geely auto Volvo Protess proton Lotus and a half dozen other auto companies daily is considered the largest privately held auto conglomerate world. Additionally, it on 75 plus percent Kalakaua, a top like loved China ride hailing company with just surpassed 2 million trips per day.

A year ago Geely holding is felt it was time for the JV Len call Candy Electric vehicles group, which it sold some 60000 easy since exception to either go bigger go home.

Quote and offer Candia sweet deal by buying the 22% interest of its 44% JV share.

40% premium to book value. This at a time when most Chinese economies were going out of business. In fact that was back the time when actually Neal went below $2 a share.

Leisha, who bought kidneys piece out at a 40% per year.

Earlier this year the only change the company's named just trenching. It's currently building two babies under the Maple badge now for a clear control. This really also committed to provide whatever debt capital necessary to finishing to grow. After this transaction trenching, which is now jointly owned 78% by Geely Holdings.

22% Candy saw the JV dissolved and replaced by a corporate structure converting Jamie is 22% JV interest in the equity shares.

Much in the same way they candy and the owning the Alibabas stock we won't be book in any of these revenues for the company.

I want to stop right there if we need to.

This is need to be retranslated back from Mr., who work and we just move on.

Yeah. Thanks move on thank you okay. Good great.

At the at the time of the transaction closed last year Geely holding its total cash cost basis to acquired 70% equity was up around 330 million, which happen to be more than leisure to pay to acquire his initial controlling equity interest in geely auto lender Black have company proton and Lotus all combined.

[music].

I guess I'm, just trying to show how important gilly things.

Relationship we can't years.

Hi, dissolving the JV Geely, holding then became exclusively responsible for some 400 million and sanctions payable as of the last report we had late last year.

Since that time, using geely holding his credit restructuring trenching designed and built to east for sale with subsidy in sales tax exemption.

All under this new Maple badge on July 11, smaller heavily equipped Maple 30 ex went on sale in China with five different reasonably priced versions.

And it's subsidies, which have now been extended to at least 2020 to the consumer costs could now run.

The only nine to $11000 you last.

The second I have my questions here in both the second D.V. the mid size Maple six TV crossover as UBI, specifically built for ride hailing has announced.

Leach who has just received its government approval and has not yet been priced expects to go on sale later in Q3.

All the total I believe there's a somewhere around 15 cars that guilty as announced in the China media that they plan to have.

Made and so no later than the year 2024 infringing.

The way I think that also includes a sports car to pick up trucks, what said interview.

Okay now for some questions.

His geely keeping candy updated on finishing sales if so do we know how many east were sold in July.

If that can't be disclose right now as Mr., who feels trenching sales will be announced monthly like most other China easy companies on the M.I. I T government web site.

That's one of a few questions.

So first if I would like to thank you for your phone over the past years and your long term support it means a lot to at this valuable.

And apparently Apollo information, what I would like to first say that is since the beginning of 2019, Chile position our joint venture. We just now costs on a so that's the enterprise to compete with the new forces in the powers in the manufacturing open up the auto industry and although at the shoes.

This has been a transfer it to Chile is actually the Chile technologist, good commit limited in stuff that jelly holdings.

We believe that after the equity restructuring of the joint venture company, even though yes, we do as the shareholder percentage owned by Us Candy.

With chili's ability to operate and their resources in the automotive sector as a controlling shareholder we believed that we will now be rewarded with even more benefit and income from from Sun, a joint venture Dan what that 50% of equity from the original joint venture can offer. So this can ultimately Mel.

Maximized the interest of us as a shareholder.

And now we as a non controlling shareholder we try not to beat we not too much in the management of the phone son in order to let Julie do what they do the best.

And regarding your question about the sales I think that phone stem cell so be at similar level.

At the figures announced by majority of other Chinese TV companies on the website.

Do you expect them to actually be reported though okay. So you're saying, yes, you do expected to be shown up there even if.

Really does not individually since the private they don't have to announce or Geely holding this private they don't have to announce it but it would probably show up there and that's why we're gonna have to really you'll have to but now it's because of the nature, but yeah, we wouldn't be lift that the service will be some a similar as are the China you'd be companies.

On the MIT website.

We expect though the candy as its only six and it really only under.

Partner here will be also reporting those numbers, so far yeah, but pretty good about putting out things are happening there, finishing with those numbers also be put out once they come to a significant level.

Yes, you know when we're actually ass upon off the company will be informed and joined a meeting regularly from time to time. So our went there new updates or any significant data Pops up you know day will report to us as well.

Got it seems.

Correct.

I'm sorry.

Oh God I noticed mr. who's on the board of directors of finishing as well. So I'm sure. He is being kept updated few more quick questions before the covert virus Gilly was targeting sales of 30000 thinking units this year.

Is it still a geely target or goal and ideally sharing it occurred sales estimate so far.

They may have for the balance of the year.

And if so maybe what about next year.

Yeah, Brian let it has impacted a hugely by the pandemic Oh I think the sales target for 2020 will be adjusted for sure. But currently there's no definitely that was planned confirmed yet by the company.

Okay.

When should we expect a 60 V sales to begin.

New car. So Directv has been approved by the government and it is expected to be lounge in a market by the end of this year or early next year.

Okay give me reported a few months good things, saying would be developing in selling 14 different models to include the pickup in sports car by 2024 with a total of three of our total this year.

Is that still their game plan as well as we know what.

Well, let's get the plan was announced a few months ago doing the Maple brand launch content and that piece our launch event of the 30 ex the first piece, though.

And what you mentioned sort of consistent with their phone sounds plan, although that should be two more those are for this year in South Korea.

Okay I just thought article that came out in China.

Few weeks ago that tend to be three two for this year. Okay. Last question now with two new eased for sale in the third expected well, let's say expected acute report, which I.

Yes, we don't expect anymore.

These expenditures have likely grown out of probably over one and a half billion.

Total since Geely auto which is currently listed on Hong Kong Stock Exchange, just announced its doing an IPO for co listing on the new Shanghai Star Technology Exchange. This is a new exchange, allowing for the first time tech companies that have no earnings to actually list with that said is there any likelihood that a private equity fine.

Dancing and or IPO be undertaken by Geely for finishing in the next 12 months.

At the moment with no comment on whether from a sound will conduct a private placement or IPO on some other market.

And if there's such event in the future would definitely announced that to everyone probably.

Okay, well, thank you very much but very helpful. Here in the.

Mr. Hu and they'll keep up the good work and then a heck of a year and and you know I mean, we did 60 to 60 million in the fourth quarter last year. After doing 6 billion into first quarter and only 23 million second maybe this year would do is good.

Okay. Thank you very much and goodbye.

Thank you.

Thank you then ask questions from the line of Jane resign Dreamless <unk> private investor.

Hi, Yes, Hello, and thank you for taking my questions.

Hello can you disclose roughly how much revenue candy would be receiving.

From the sale and installation of one single QB ex station.

That would be just the station itself.

With the automation robotics without the batteries keep that aside.

And second part.

How many batteries do you think would be needed.

For Q Bx station running at full capacity or rather how many batteries Kenny single station accommodate.

Asphalt this question.

Entirely.

Sure. So maybe we can delegated question to Mr. hu. So qiwi. Please kindly translate the question from is the who are so he can I replied to the gentlemen.

Sure I couldn't tell them, how that one I can't say social that sounds as though yeah.

I will show up.

No matter, how well my humble showed outdoors shot show bulk why didn't ship to eventually down this year, maybe I don't recall at high Oh sure.

Hey, how they embody paci outdoor shop.

Yeah, I'd say, maybe high but let me how quite young Jan and knowledge, how bullish on that we actually had no gold young Honda.

Yeah.

To me that Q1, two or find Dan fannon accident rate yeah.

Yeah, they've got to create a quiet down by Boston Dykstra.

Yeah, It's valuable Susan My dancer, yes, as a type curve that then survey thing it was you.

And I'm Uh Huh Fergus falls it sooner I got to you all mentioned I suppose auction system you Tim for that in guys or where do you can't be shifting that Doesnt woman jogger young woman and what I.

Hi, this is doing and achieving our I'm good job and I can do the job ready skills. So John topic, you backgrounds will you haven't even I guess a different before it doesn't seem bank Sorta Palm Beach, California body media came in kind of.

Oh on taking.

Yeah, I can tell you if I am at Ash launch what you Moshe This year initiative at the I'm sure that youre actually onto that.

Great Okay.

HM a high and we are planning to kill have a why to be E. S station to 780, they call. It picked up and there will be 40, plus year old 47 badly well be working on.

One station too so.

280 vehicle.

Running full capacity and because our badly.

That is lapsation most advance.

We believe that its going to how America sell price, Oh down 100 million RMB, but I, but I intensify how much money on Lincoln received from that.

If not until it's close yet, but when we started selling I will let just closed that plays in our filings.

So you're saying 100 million RMB per station installation and is that with or without the batteries is that just to stay out or.

Oh, well hospitals on you saw that.

[laughter] once you back you about why anyone would be I mean, I'm sure there would you all HM.

Yeah, I you buy why a movie should fall KLA <unk>, Oh, well I was long bump was lucky I'm sure I tell my simple buffer against you know how should that Blackstone.

HM.

Football question.

Yeah.

Obama against your cell phone lines on the only a massive I'm very very favorable items on for you want them I do that you might want him yet as a football content. So part of if.

Uh huh.

Hi, I think I'm mistakes and it wasn't one young R&D not 100, <unk> sorry, while R&D.

Without battery, including the installation.

Okay, great and just because I'm not sure I urge you right. The station will serve 180 vehicles or 280 vehicle.

Sure I'll get aiding to eight to eight okay fine.

The next question is.

Regarding the Candy Jinping review BOE vivo operation Alliance.

His candy still in partnership with di di for Rideshare leasing platforms or is the alliance.

Now in effect, a competitor to de de in REIT share in the right your industry.

And then.

I'm, sorry had a little second part to that.

Can you ever feel to pursue.

Where do you want to just be handled that true.

Okay. Hi. This is that's not one just on my phone call employee <unk> m. on sort of hitting along gets a lot I shuffle, hi turned back on each week and that's why I should say enough, but im hopeful that let's talk on D. choice and actually tweaking I'm going to either.

A young Guy short Mega TV us into a yard shifts into thought tends to wait to warm and naturally us into a censorship ancillary Joel I'm, a catalyst that sounds I can't comment one I've done I forgot team can be so that's a woman to use it just sounds it kicked him say warm and create value for another use.

Hi, TB I'll be discussing they are targeting go first and second tier city and what we feel together would seem hauling away for our targeting although again, what's tier city. So it's one day de de go into you're targeting the thing that's why it's tier.

Studies done I be weapons are in competition.

So obviously, you're sending di di is targeting a different market, but if they were to target. The same market has candy jinping real though then there would be some competition.

But you're still working with D in in its other area.

Or you're not I still now not want my son's outcome when DB Hi, Oh. Thank you. That's all now that you have on what you had.

Did I hear you had to go woman I'm not sure what shaved off the top not to fill them here sort of talking about I feel you can do.

Yes, I want to finish on to ground up our common.

We want making you would either how society of censorship answer John also found for his influence woman just for country Importantly, we're hopeful about answer the phone you can didier.

I've done it seems like <unk> for example.

<unk>.

I would tell us how do you find out contact with baby in the past well ever since I was hopping Doug I'll tell you. What's your studies. So we were now working together, what we blend the team called asking a future were going to also partly answered oh the market when tedious.

I will will most likely to partner with them.

Yes, so the ER candy Jinping real go operation.

Is will be producing cars into the 300000 dollar a thousand car program.

Haoone gene caught my eye with watching like a whole Showtime Oh wait wait till the actual my one that's really sound mission control my.

So you would you leave ample maintenance I'm sure that mcgarr.

Downstream firmed up on I think over John also frees up in order to a woman crime and yet because when I knew MPAR. The guy we want your price and the true.

No I feel confident that the government, that's whether they're going to go through.

And told them yeah.

And I concur.

I'll now Huh I can't go live where they operate area, although they're not going to let us after an easy way that program Oh boy, depending on how our cooperation though.

We may move together, we came calling to.

Produce cars.

Right, but you are using the be cooperating alliance as the.

Obviously, not the manufacturer, but the operator for the 300 to K.

Program.

Ah, yes, I feel that he'll make sense, yeah, yeah, yeah, yeah, yeah on the Lake once all legal Michelle like likes you saw nothing thats.

Thanks, everybody I'm trying to sell thereby.

I mean, I've got a dream, absolutely unbelievable wafer form and killing it doesn't want my math, Okay. Lucky go no go fight against the Baby <unk>.

Yeah, I assumed I forgot to kind of true or not my team from that's what else are dealing how about.

You were down candour job fancy shifts incident, you got shot images are constantly airplane shima pharma. That's all I had for so do you want how does the three yeah I could sort of your food.

Hi, so not a yet opt domain outweighed, our as reported and candy I hang out well, providing a Q. The he acts on pay 23 models.

And this program and ink home as well utilize Oh, Yeah. This is bill she now where there's and to help what it to help promoting this program.

Understood can you reveal yet the percentage equity stake for jumping in the alliance and is real though also receiving a stake.

And it's candy receiving in the cash for providing stake.

Oh I got lanes that that gave us down yet and how we bought some de identified helical said, Oh, Oh come either tiny ship on yeah.

Hi, Jim pencil.

Are you guys is a tenbfive for Jim phone, sometimes this is a woman. Sometimes this is my team and that's where I said, even how do I found womaniser what am I correct, So you're saying that guy Eagle sitting idle time is good sometimes difficult I'm Cleveland somebody comes in Boston I didn't know time due to invent a woman create another bank.

Sure.

Okay. That's helpful.

So the ACO he Oh I came home in the whole programs 10%.

And can be right can do you also have 10%.

And amazed that the rest well be owns by report which is 80%.

People have 80% okay.

Now the the Capx station that was just installed in high to city that is for the operations of the alliance.

And how many K 20 threes do you think would be used in the high NAND trial.

And how many QB expectations would be required maybe to cover on an island.

I hope I'm linzess on the biofuel colonial Mahyco that you got to hi, I take it might be I'm sure. They ship Autoship she'll share like who you want me sanction I'm trying to some would fail Nigel share and say hi, called I take it sounds like yeah. So how should also hey wait home phone Bush.

Yeah. He always done that's well I can't see well actually got a high code that you can go a long answer, but there's someone else and how you see could you. Please see our lifestyle hi, one entity.

Financially.

As a fair well I'm sure. They took a challenge for CIS is a ways a similar cases, it's a high noncore for Dan I suppose is your city.

From a shanties until we actually if you buy now I'm a total for your father and a bad thing dry mouth free.

Down yes, Jim on your when we run down Chennai somebody you Guy.

And when you go through them.

Uh huh.

No just as wash through yacht react to that point Im trying to just trying to evaluate where you are trying to find out by paying down through well My quick things you say on the chain country trouble okay.

Oh paycheck.

Now you probably know she got.

Now, let bashing pedal.

Okay and I'm very.

It's going to trigger a entries that she's on why maybe from having to fine tune. It doesn't mean can't coupon how about positive I'm sure I'm, a north Dakota, nothing or Yasser do you want what on set up I'm not sure my food, Megan Oh, [laughter] mapping <unk>, two and how many parts of I couldn't take care.

I've got a summer.

Alright sitcom Mtges Lavaca totals on <unk>.

Uh-huh.

Hi, I hope that's first and then well we are starting.

Hi to operating the 300000 to program a Russian program and so we're thinking about your first deliver 100 pay 23 models for the title operation, but within two years, we estimate that you deliver a 12000 easy and.

Based on each to be at station will serve 280 vehicles.

You can do the math I eventually hominy stations are needed.

To run the programming Heiko.

The 12000 vehicles in two years and then you can divide how many kubiak stations would be needed for that.

Right right right and that's gonna be Oh gradual process so of course.

Regarding the K 27.

You are producing a new U.S. version now the previously you had a K 27, specifically for the Chinese market so the consumer market.

I know you still selling back K 27 to the consumer market in China and there are there any.

Else figures on that.

And can you confirm I thought you heard the someone asked about the Maple 30 acts are you not able to reveal.

Sales yep.

For the Maple 30 acts.

And I'll just finished with or is there is there any plans to modify the Chinese version of the K 27 with Swappable batteries. So we can also be used in rideshare. So I'll, let you handle those questions.

Hi, Scott Landers, Sean that he I hate he should play or just they don't want a selfish is how to sell Shaw.

Oh, no almost triple play pads or cash, it's you know I'm Biotie, Josh I'm not going on QB ask your question why again that I hope they don't anchored by a wide choice you sound a little later in life isn't how you're talking about entirely on one dollar.

He's Bonnie essentially.

Some sense you actually sequentially here. That's when you end up Luca you. He was a high hypothetically upheaval and to control their social so.

And I got care Archie woman content, that's all elements is to make whereby but talking about.

I don't go up I know part how does it seem like tool.

And if you go into my subtypes or not so you got anyway Charger charter Yeah, Josh Singed up you can call yeah, Freddie I'm pretty sure about upper Kinda you only one of your program.

No might take a function that I'm not sure how come together and I got my God tricky and tacos looks like that's what you're waiting shoes, I Wonder if I think sometimes other finding.

We only have to just say 27, well American market and so Oh, we are not going to modify pedro them well that tiny seamless and also if he could take 27 without very small size compact car. So it's not going to be you what.

Not suitable for the my whole market and we got into the nickel 30, X. I think we have very limited involvement with function see just that Oh.

A follow the public safety for their cell self numbers I, we don't have access to that and we're not going to report on behalf of function regarding yourself numbers.

Okay. Thanks, and one last little section I'm, sorry to monopolize call, but as far as the subsidies.

The government seems to keep diminishing the subsidies.

Correct me, if I'm wrong, I believe you still get the a 10% tax.

Waiver.

For new energy vehicles, but the new range is 16000 too.

102, 22501 for the subsidy range.

Yes, that's for a minimum of 300000 kilometers and since we do 300000 kilometer cars I assume we're getting the lower end of the that range.

Which is the 16201 subsidy or $2300 in U.S.

So the you can maybe.

Does that sound right well confirm that can cancel all my time.

One day.

<unk> <unk> you I don't you can go either on or U.S. dollar so don't switch, but boy. So I'm. So I think well I just read recently than the current ranges you get a 10% sales tax Oh wait.

In the range of the new subsidy is 16200 bond too.

Well into 2500, that's the range and since it's a range and the minimum.

That seems like a kilometer per vehicle range is 300 kilometers I assume we're getting the low end of the subsidy range, which would be the 16th 200 cars does that sound right.

Oh, so you're you're comfortable with that right right correct.

Got you unless you can correct.

Now, let me ask mystical, especially what types of having kinda talk obviously quite easy, but you know Tropicana has less of a high single publishing Nicole just opened yet yeah no mm tick up what's your last year Diversey, What hill with L. mine should yeah. Thank you need us Johan nimble right. So how that's there's no power.

Well I.

Thank you the outdoor share some by Golly I wasn't sure that I'm hopping back on this as Schiphol shale woman and go it's just how not only Angela I want you know Chanda I believe here.

Hi, This is also going directly to him.

Well My Korea talking about you Baba and they maybe I'm not gonna go to see happening in that two feet.

And this will come from its correct and 10% deltak lift and and the we can't class Oh, we see 18000, R&D I don't see it took high.

Okay lastly, the since the range the minimum range vehicle range for with sealing the subsidy is 300 kilometers and all the cars seem to be just a hair above.

300 kilometers.

My concern is do you foresee <unk> or do you know from your contacts with the government.

If they plan on Inc. increasing.

The range of the minimum 'cause they went from 250 to 300, if they go to 350.

The cars, they're not going to be qualified for the subsidy. So do you think the 300 kilometers will hold for the next.

Three five years or do you foresee range increases that would mean a re working up the cars.

Battery enhancement or.

For some other methods to a redesigned to improve the range. So those 300000 gun whole Hawaii.

And that's not lengo share just yet, but it's clear that ultimately do well I'm going to happen till flatten Changsha young bikes are going to heal no Bates you don't know some back on how you should anticipate Hong Kong Cookie. They yeah, what actual anyhow film, which again, a jaleel <unk>. So I do the thumb some bye bye.

Only a decade yelchin, social but she's done a one yes actually we could see politicians lets you didn't call somebody I wish Acone night, because it seems like she's I'll show you asked me snap on highlight at the like at young I get a treasure Hunt attorneys am I correct.

Certainly wouldn't you wouldn't that be Yahoo. Well, then we are 10, when she could quote choose or what Josh complement hypothesis is so difficult to quantify.

No I shouldn't I see a fan.

Mmm quite possible way to resist shallow and deep licenses they definitely.

Oh, Yeah, just a fund here.

I will find tend to find out hard to fish cities in the yauch ocular melanoma color. Yes. It's also coupon Jennifer Nice you city thing not your meal. They work on sort of currency say wait I took the density to talk to further can enter again.

To put your quite enough to your Jem and the fundamental so that's what the just switching say woman, we like all but puts you could talk about that so on that guy and find out a bit.

Cogentix baby jogger other treat cylinder fiber, so fun didn't buttons and a tool.

He sang that this is I have a good question.

That's right now the fabric swapping hopping back savings by the government and also markets.

Dan why they won't be our concerns over the does drive rents because in the future. If you can just what's changed your badly everywhere. They don't have to really worry about whether the car can last year, either 300, <unk> kilometers away or more and middle East.

In a future batteries whopping well be the future alpha in the industry.

Oh, yes, but that's that's good for the driver I'm, just wondering about the subsidy the subsidy minimum wage so you're saying if it's a battery swap vehicle.

If it falls beyond the an increase in the range it will still get a subsidy because its swappable there'll be a different scan and core okay. Okay. I got it has not someone has went to the that's oh.

Oh Hotch that done that's why did you have sounds as though not just a couple of results out Oh, what that caught up we cannot shows you what do you actually horizontal well again a lot on the outside some by only shop had you'll know going to look up what I'll call. It yeah, Oh, well with Apple tier.

A genius are coming from found that May when came back and I'm Armenia, and that's what happens isn't much help engine because it all other yep and I, Virginia out people what am I know my opinion or you're reaching out to major thing yeah. She's up a people and I can you give me went in Minneapolis, and all hands on how play Bosch Yeah, Yeah, Yeah, Yeah, I'll be brief commentary on T., but yeah.

Yes, I can tell them acting or you're eating often with your prepaid them.

Where dr. T happening up right now.

Okay, and Miss was saying that this yeah weapons you I'm continuing the same policy.

However, next year, how policy going to be modified were not show I will see but this year due to the coal bed and we're going to I just stick with what we have.

Okay very good I know, there's a lot of questions, but a lot of very good answers. So oh I appreciate it. Thank you.

Thank you very much.

Thank you at this time Weve reached the end of a question answer session I'll hand, the floor by two management for closing remarks.

Oh, yeah, if im answering them or crimes and I got I'm talking about doing roughly what's embedded in our country them. So quick cooling enough finally at home, but I won't name on it and not woman's answers your one too.

Do you follow on tendency to you being it's yeah counting that.

Yes.

No what do you away from don't handoff to comedy fees on continue minutes into an easier.

Well I mean should I say, sorry, but you know hopper you Tom Thank you ought to.

No go into your with them I seem to win.

<unk> basically you woman that <unk>.

Well I see.

I mean issue.

Figure about outside yet [noise].

Ladies and gentlemen, thanks for attending today's call on behalf of the board of director of a management team that can be technology school I will like to affirm our commitment well, we'll continue to want diligently to maximize shareholder value by focusing on growing our either.

And delivering strong operational results. Thank you very much for your support we'll look for what's your talk more deals in the next call. If you have any additional question. Please do not hesitate to call. The Imus Relations Department. Thank you Goodbye.

Thank you. This concludes todays conference you may disconnect. Your lines at this time. Thank you for your participation.