Q4 2020 Kandi Technologies Group Inc Earnings Call
Hello, and welcome to Kandi technologies full year, 2020 financial results Conference call. At this time all participants are in a listen only mode of question and answer session will follow the formal presentation. If anyone should require operator assistance. Please press star zero on your telephone keypad as era.
Minder. This conference is being recorded and is now my pleasure to turn the call over to keep all the please go ahead.
Thank you operator, Hello, everyone and thank you for joining us on today's conference call to discuss Kandi result for the full year, 2020 well issue a press release today covering the result, not necessarily seats available on the company's website at www Dot Kandi vehicles dotcom.
Well, it's from the newswire services on the <unk>.
With me today are Mr for Xiaomi, all founder Chairman and Chief Executive Officer and other.
Mr. Alan Lane, our Chief Financial Officer, Mr. Lu will deliver prepared remarks in Chinese, which I will then translate after that we will have a question and answer session.
Before we continue please note that today's discussion will.
Content and forward looking statements made the under the Safe Harbor provision of the U S. Private Securities Litigation Reform Act of 1995 for looking statements involve inherent risks and uncertainties and.
The company's actual results may be materially different from the expectations expressed today.
But the information regarding these and other risks and uncertainties is included in the company's annual report on form 10-K for the fiscal year ended December 31, 'twenty, 'twenty and and all of the public filings with the SEC.
We do not assume any obligation to update any forward looking statement, except as required under applicable law.
As a reminder of this conference call is being recorded.
Attrition on the audio webcast of this conference will be available on Kandi from Investor Relations website.
Note that unless otherwise stated all figures mentioned today joined the conference call are in U S dollars.
With that let me now turn the call over two hours the al who shall me.
Go ahead Mr Hu.
Yeah.
Uh Huh, she was there for us and I'm, finding and thought yacht and yacht tender and that didn't work for you.
Hi, how are you and your.
And it's home on the on the Union.
And why are you seeing that sort of share change of a turnkey. It's also the phone call.
Here's the good work hard for that.
The content of the credit is shocking and syndrome.
And don't go on from India to.
And somebody else and on the yet.
And this is Sean cadre and going on for.
So the high mini body.
Thanks for woman, she's the timeshare and gameplay talks of it.
Oh cool the other gains and co.
And so what that sit on them.
For me Yarling.
On the phone yeah.
Hi, Sue.
I meant the east and the downside for women of solo.
That's all of it.
Yeah.
Hello, one by end of life.
Hello, and welcome everyone and thank you for joining us on the call today.
2020, what's the ear full of challenges of Covid.
COVID-19 unexpectedly impact of every corner of the global economy.
The country songs watch the virus, including implementation of corn to imports and the off course, you. Unfortunately this caused many companies feel.
How about being operating in all of ours.
And bankrupt as many small businesses.
Kandi quickly responded to the crisis by temporarily closing all of facility working remotely and the carefully cleaning every day.
Although our operations in China, we started by the end of March.
And then your revenue streams will still adversely affected.
There were several production interruptions caused by the many waves of the pandemic.
Okay.
Woman day.
And on opinions in the fines and Shaw is the tango per share them.
Sorry for you go into a true.
No I'm not sure at the end of the opinions on the topic of Shanghai name with the other things out and shows no problem. Yeah sure. There are tons of wood that seems on.
True to true food hygiene by job hanging over them and that.
Okay.
Yeah.
However, even in the face of such a difficult business environment, we achieved solid sales growth and our off road vehicles Electric scooters, you left yourself balance and scooters and really the part you can see more details and all of the 10-K.
Alright and.
Women to the deal.
And the teams then the shame.
James on she talks of the turnkey weighted C zone.
The only O Chenzhou main yes, food show on the HIFU combat Dan on tariffs.
Uh huh.
And at the parent.
The pain of interesting content, while much of our country side, there and don't see telco against the volume E. G for use the Congo quite off and Tom.
So and maybe that real kudos for the punch.
Don't see any of the hunting and I tried to kill.
In 2020, we're actively sought new market opportunity the alcohol and lovely to all competitive strength.
And we decided to pursue product innovation and electric scooters and electric self balance School day would you have on potential global market of tens of millions of units sold each year, we pursued revenue in these opportunities by expanding production of intelligent transportation products.
And exploit our advantages and electric motor and battery pack.
What are you what's your day.
And yet Jim Groch Quintin on homes on time.
And then I can ask the Sheila dog of Pingo <unk>.
And I'm glad you are moving.
The job the team is on.
Yeah, well of Miami, do Hawkeye vouchers shandy chance for that towards the of compound, but on kind of ways.
Oh sure Yeah.
Yeah, Sydney Sydney the cause.
It seems on.
I share your chance to talk when you go to the game would yeah.
Yeah I mean.
Yeah, sure and what maybe a pair.
Hi, voucher jump and Sun.
I'm going on for you to acquire more channel with me and he was telling me that so with all of that channel and see some gain.
And I mean be yeah, and tell me about why.
Yeah.
He was he's junior and the.
And then go Trimble to wait.
Looking back on this challenging year, we still achieved multiple milestones and they progressing all the strategic projects.
We smoothed me executed the repurchase agreements with Jim's life, and I'll make and technology co development zone.
Key element of all of Jean Paul facility relocation.
Development of zone ugly to pay of approximately RMB 525 million or 80 million and U S dollars easily inc's domains.
We have received the first true installment totally RMB 353 million or 55 million of U S. Dollars. The remaining payment is expected to be received in the second quarter of this year.
And my English for one of them Fox It sounds.
And the one off and we want it kind of took the Sharon you.
And you think highs of the thing.
Yeah.
The John Lewis and could you sort.
And I heard it.
And so you want the over on top of Sunshine.
Yeah on Bakugan.
And Oh champion for the channel.
And things that you'll see that the unions on sort of on that and then don't you for Trimble.
One day of most of it.
And yet it's only one thing.
Oh sure tasteful leaf on Finfet cool.
Good.
Yeah, most of that Dan Wichita.
Senior.
And therefore for the popcorn and Dan.
It's always seen and she just told me all of that sorts of boot barn.
So two of share rollouts and for wounds.
Oh boy.
Oh, yeah the aisles.
We don't control.
And in the insurance Dumas.
All of our southern milestone was the successful trial of hours from call. It 300000 government of quite a bit of pure E V. Within five years why share program. The JV platform operator, Joey on the technology company plans to take delivery of over 3000 and government.
Compliant E V in 2020, one graduate deliberate is underway all of those Evs feature all of the battery swapping technology the <unk>.
Chinese government has implemented several policies that favor the manufacturing of Evs with battery swap enabled especially on the news of C. D.
Policy.
On the battery swapping stations were included for the first time and infrastructure construction and the government work report.
Okay.
Well my guess is that guy as shown on the Gulf.
Yeah, that's true data.
First of all the teams on below well many of your question again, one for Jim and myself.
And going for C H.
Channel.
And as for that.
And yes, that's what share you John.
So on key she's seeing the walk one day and washer side, and then don't sheets and.
Well my J&J.
And so financially.
Got you show on the jeans on chocolate law.
Women and don't you named.
So based on the syntax Joseph.
We moved forward in many ways in 2020. For example, we signed the agreement with the Georgia Dayquil Electric vehicle service Company and October 'twenty 'twenty, two strategically incorporate that and exchange into pure E V. We believe the tailwind.
All of the Chinese government policy.
And.
Hey, I'll help the production and the sales of our EV parts and the battery swap the equipment.
Okay.
The sound good for English.
Why are you on memory, what's the time of the K Tor sales that sounds okay. That's it sort of change of Ireland.
And the embargo so I can share of Pablo.
And go on with Shannon I'm on for Jim and Mike Walk Quad and Jean Paul Paul Social E. P and I didn't say well I mean, it's some of them, yeah, DRAM and foundry for him and what you all kind of boom for the type of Orange and Delta, Yes, Joseph D O T and the be all drive the pulse of the you walk the handling and sheets.
If I go for I mean, assuming all of them.
Seeing the E Mountain Dew and Wachovia reachable.
Fruitful.
The third achievement was in the U S market, we successfully held a virtual launch event and to introduce all of the K 20 suite and K 27, the EV models for each of the U S. In August of 2020 we.
We have often clearance from the United States Environmental Protection Agency E. P. A with both models. So our focus now is working on some on vacation to me day.
Oh geez requirements of our federal motor vehicle safety standards and requirements. We are also working on feature improvements catering to the U S consumers.
Sure that sounds true.
And I think what's the what maybe why not sort of one year.
Huh Congress of the thing of Huh.
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The Guy, who we want and that's at a point and bear more true.
And on traffic, we want and that's for sure.
So you're going to shake the name.
And so from here well.
Oh I'm sorry.
Hi, Randy.
Yeah, Tom Williams for teen jumping from Sydney that answer that you did on Nuomi, yeah, Jonathan on simple.
D kind of Banca regroup on that I'll wait for me on total debt. So you won't hear and you and Bob Yeah, and don't you brought the same friction.
One day and Keytruda G central.
Click on and why you kept pushing for that channel.
And with dish and through the three milestone, but yeah, and we signed a stretch of Copel operation of all agreements with the Hangzhou branch of the agricultural bank of China. They will provide a line of credit to support all of ride sharing market expansion with the capital from.
On the blue as the repurchase agreements and the Hunter and 16 million from the direct placement in November 2020. We are confident that we can fund the R&D and necessary to develop new EV models battery swapping technology and the right sharing program.
So I went out for I guess this year well it sounds like channel.
Well the money sorry on landmark.
And your life, that's the most of the.
Shrimp on Covid.
Yeah, It's one of our current interest and the fact that again don't see true you'll use the app.
For the junior Charlestown and that's true.
So John do you want and then sites on board and then she just of the tender.
Thoughts on kind of jumped up.
Before we move on to Q&A session I want to highlight that we recently asked me debt from the function of affiliation previously called JV company by transferring all the many equity interest. This is important because we will no longer be restricted by the of Soc.
And the noncompete classes that's.
This means we can pursue the EV market in China more aggressively.
Yeah.
She does that kind of for the wind off on that same day job for winter.
Yeah.
We can now take some questions.
Thank you and I'll be conducting a question and answer session, if you'd like to be placed and the question queue. Please press star one on your telephone keypad.
Confirmation tone will indicate your line is and the question queue. You May press star two if he'd like true move your question from the queue for participants using speaker equipment, it would be necessary to pick up the handset before pressing the star one one moment. Please while we poll for questions.
Our first question today is coming from Shawn Severson from water tell of research. Your line is that of life.
Hello, everyone.
My first question is about the battery exchange of Rideshare initiatives.
I'm trying to understand exactly how many machines have been sent to the first site and then.
And then the follow ups and I guess the second part of that is is what do you plan for selling cars in 2021, and when you look at the but the rule.
Rollout of this broader across the Chinese market and just something that's going to be coming in.
Big chunks or is this going to be more of an even flow of the roll out or will you have kind of large lumpy sales I guess is what I'm trying to understand and will this be something in the kind of flows out fairly evenly over the next of the next couple of years.
And Joe and he loves niche on personnel and number of alone shortage album, and they'll close of one day and the quiet my name to the sound more so from what you and I saw you pay on Bushnell golf on cost of fund in the shopping for home phone till July and I see how do you get it and I. It sounds it all well and I shouldn't say and geological work the actual like that.
Coal volume juncture English on channel clean shots, and you'll share Kenosha well ship on the.
And you'll see on the How'd, you wait and hold on to all day now how should we go it's usually call me old attach of Hawaii, lung and downhole and little sheep dog eat any of the telephone losses.
And y'all get charters attached that and go on Eagle hunting.
Okay.
All right go on and thank you on soybean on one of them written change.
I'm proud of the ones you sure Glenn you will know quite well and the end of shore base and the shelf switching part well most of my tenure with wash all type one the on shore base speaking social tools the telephone line.
And it sounds kind of mentioned the Ohio, Joe share of woman and one yeah true of the sea Turtle Fong Joshi goes from here, but you had sort of of Jean C.
Yeah like you know in the I should say stop he down day, you sat and toll from Bellshill top notch high showplace. He says how many of the say you hold the shoe candyman and wish you the E B and a telephone and bell should have touched on on the allergy shots on Bush's on the T y.
Oh sure and in Africa.
I'm going to ask the P&I.
And the Sun.
And I got John.
John and I got Saatchi art and of the Charlie.
And Tom on my opinion on where your toes total for the truth that Guy how.
So the types of Hill ROM.
On a ship till now.
Two for appointing Dan that you kind of junior.
We talk about Sun channel type somebody goes for now.
C&I and who should go kind of the telephone and she says fins and Codell Hawk and I'm Uh huh.
The tenure took a case of the telephone and pass the Lulu Xuzhou, and yeah, and the harmonic wheelhouse and I'm not showing signs of one pi and food.
We couldn't you took the Tia to Wuxi that's over.
Yeah.
Hi, everyone and as Alan and I are answering on behalf of and for the.
Translation for Mr. Hu Oh, that's for the question about those.
Of the smart battery.
And so far the free device.
Lease to the market one being sent to the high call of duty and the other two has been so two of.
Our sales team.
Oh, yes.
For the Oh.
And for the spring 2021 on they'll be a safety device is expected to be distributed during the year.
As for all of them.
These are in China, so far we have or at least have the orders of 3000 on evs that featuring the smart battery swap.
And you'll piece, we leave for the market gradually during the year debt and 21 I'll ask for all the trends we are following the plan on.
The.
The customers that have to all of the so-called free Hunt and.
Oh E. Because in spite the his program and of course, we reported the fruit, though and you adjust the unnecessary.
And so about this plan from.
All of upsides.
Yeah.
Great. Thank you for that just the follow up question regarding the MTV and of the U S market.
<unk> seem to be a little bit of of delay there, but if I understood. You correctly. You said there was some improvements being made for the U S market or for U S. Consumers could you be a little more specific on what what that means and then also details when the other Dallas HQ will be ready.
On top of the al when you shook while you may well, the Showtime and special company and she thought and.
And so she languish at that make where she shops the other teva on top on.
The fashion and I say Young's share of sanction and I won't say it sounds I play hunting for what I see.
If you hold on and nobody lunch, if you force out your nutrition much I'll jump.
That's the thing.
Women and children Empire from Guy for the praise of the Xiaomi and ones I guess.
And when I drove my time to make all of that Shang Guang Parkway dates and shoot on the E. P.
And from what you guys, Yeah, and I'm wondering as you put it and pay for that.
All of the Orange and also because of a D O T. The gotcha.
And the tongue walk towards the pulling from.
Hmm and bought it all on my part of and I've got a chalk and cheese.
How's the figure of consumed for the one shows the but yeah, we'll do that but yeah.
And the Guy, who I mentioned a high tech.
And she now Bob the builder and found Matt Hi Tech put on the key thing how do you think you'd see on true suites of cigar.
And thank you so much of the phone and then although.
All of them and they've got you also had the hydro.
And I must say, you're kind of womens boots on the but we're not just the.
On the true C.
Please be quite as sort of a true yeah, although I took the D O T that hundreds of Belgium.
Okay and I, just the one man simple yet.
That's right, yes, its the way you got to Europe and that shows that in fact, I believe well sometimes on yeah. He and she also jogger and I'm not gonna Joseph So doing my own and I'm, a quite a chunk of it and they're doing quite a big jump here either.
And they're going on with me and seems like tweet.
So for all.
All of our plant and the U S market off the old launch event in August last year, albeit from a point all of the hits the words.
And all of that looks to us.
To be for lack of eligible to sell on EV in the U S market. So far we obtained and the approval and certification. So the E. P E.
And as for the P. O T O. There are still some safety requirements that we are trying to meet and.
And satisfied and.
Mostly about the the crest has he got that there'll be requirement for a multiple of the crest had especially for the safety capex.
On the standards of the FX.
And from the U S and European market and two of the PRC market desk quite so fast.
We are doing and the major we fly and that needs to get hot.
We signed our standard for the add back in order to meet the standard we call appointment you know from the D O T.
The met all of that they are two pathways that we're working on right now on it.
Of course, we are trying to look at.
And to meet the other safety standard.
And that's a peak.
Meanwhile, we have released the the.
All of that so called the N E E version.
And the limit on the less of the of the speed limit.
And of course on there'll be less requirement for the safety of like the asset that has been fulfilled.
And in terms of the NDA and.
On the climate and with all of the Eddie.
So those the.
In the U S market.
Great. Thank you I'll step back and the Q.
Thank you and next question today is coming from EM Moran from Zacks. Your line is that right.
Thank you.
Can you.
And you. Please provide some additional color on the relationship with the agricultural bank, whether you would tend to use that as sort of the model and replicate other relation and relationships to drive growth.
And if so could you give us some sense of timing how long it took to negotiate and kind of a relationship and in terms of how we should think about that going forward. Thank you.
And how do you and when you shut down and tell them look on the wing hungry because of shows and you won't do true well that's one of the Morpheus Tyson on the truth I'll take on wash on Michelle golf with for CIT. She's gone. She has known for the whole home. She itchy dogs from talks around the G with not just for you on a Y O woman day, you got the damage on the T y fisherman.
How does the one thing for some jaw Greenberg and Mt.
Yeah, Yeah on Shanda and forgotten.
The wishing that for the.
So it's the same for wheat.
And I mean do not.
And I'm a country.
And then.
Yeah.
And I want you to talk on the cheap oil and I'm going to tick up for.
The genome for onetime and come on towards the end of your answer.
On a local it's hard from the sounds cool G wall and Amazon as you know.
Yes, Jonathan the synergy.
Sorry, yes for title to the can.
And if you go to that cause the other kind of engineering and machines and alcohol.
And I'm not sure where you got to figure.
Sure I'm one of the German way of woman, that's why and you said you don't tell him and that's true market.
And on my part Joe switching and.
Oh, you're aiming for.
John you Huh.
Hi, My simple.
So on and so somebody you got some.
Some of them.
Yeah.
So basically oh, what's the decision of course, you know our copper and be sent with the I feel I can charge of bank of China, the so-called APC.
It's really on the line of credit.
And that's especially the the whole Rice Dream program for me.
And for all of the the so called the 300000 Evs in spite of your program. So what will it look as you know once the believes that you'd be to our customer the writing on the label and the fact the will use the on the credit of two lethal and not just funding the project of <unk>.
The first net of credit and the offer is 500 million Oh it would be.
Well, just roughly around 76 million and U S dollars on.
Of course.
The current or definitely debt with the order of 3000 U B S.
2021.
There's a lot of credit would be north of pizza.
And of course, if there is.
The part that's expanding on going a b C.
On a happy to higher on them.
Credit to us because that's what this whole Graham thanks for all of this.
No and sign off for the.
The Lady and the whole licensing program.
So basically.
We are meeting more are we supposed to the IB.
And so you'll be off the high line of credit and depends on the production of progress. Meanwhile, we are trying to exploring different options from other financial institutions, but I guess right now on the ops. The the author of the a B C.
Morning nut for us for the moment.
Okay. Thank you.
Yeah.
Thank you as a reminder of that star one to be placed and the question queue. Our next question today is coming from Michael for now from focus Tech investments. Your line is that of life.
Yes, good morning.
And lots of little clarification on the N a the cars.
The U S.
Good day everyone.
Cars.
Okay.
Inventory is it.
And to be sold as neighborhood cars. That's so would there be any significant price reduction.
And then.
And so answer that question accurately.
Hello can you, let's see one more time are you all of the skipping the beginning.
Yeah.
So I say again keyworth.
Hi can you just repeat one more time you were a little skewed.
But the boy that was delivered.
And of the U S.
Starting last year.
Can you give me a sense of how much how many cars have been the flavored.
And that those cars will be sold as of neighborhood limited range of vehicles.
And if so would there be any significant price reduction.
And how do you when do you should kind of a bunch of share ETE and along maybe what did you sit there and on trucks from 40 match total shall Eugene E juices diesel truly each of Mila and tissue. The T. J <unk> diesel share my the Genco sugar share.
Your cost of debt.
Yeah, Yeah got you on.
Yeah.
Okay.
Right.
Right right right.
Gina.
And the diesel and I assume that for <unk>.
Chocolate and that's true.
Yeah sure.
John and Mike.
The true teed up on that credit kind of all of them and I got Mike welcome for the ones that make a true like of chalk correct.
The Chennai and that's what he is doing for the al can.
When you tell them share it seems like kind of my true.
Yeah.
Oh gosh the mine.
Uh huh.
Okay.
Okay. So as for the N E of east.
We have thought of.
<unk> started to the south and you'd be towards the end of last year. So right now of the amount is not significant and we have oh.
Gradually of secondly, the E N E vs towards the distributed.
Our network.
So because of all of the.
The.
And of the speed and the range there.
And there are some price drop compared to maybe push for the practice and can we put all of that can be of market looks like what the dose.
Oh, and you can't so basically thats the details and you need.
Yeah.
Okay.
The other.
The follow up I would like to get a little more information on your quick battery exchange.
Do you does your technology of lend itself.
Two individual car ownership.
Or is it strictly on the fleet market.
And if it is for individual ownership.
Can you discuss your.
The ability to compete with.
Manufacturers, such as Geely and Lee Motors.
And finally do you expect to ever have quick battery exchange for the U S market.
Yeah.
Uh huh.
Are you asking the our E V, whether it's going to fit the sell through in the say Chihuahua only fleet market right.
And as the first part of the question correct and.
If it's.
And for individuals and how do you expect the compete with other technologies, such as Geely or the Lee Motors.
Okay.
Okay, and then the bond bar, where you expect the bed go on to the U S and some time.
What was the at the the ones that have the battery swapping.
See true right correct.
Correct does that expected as it ever entered the U S market.
Okay, what's the on jangle and should how should one as usual and I'm not sure of didn't on shore switching from day, one and that's where she held the what are your high school age all day and so each one of the Shelby trough, especially J social Google of meals and you'll have to yourself for a while most of the gel Mitchell Hersh true Ghansham.
And she had the ash.
And Joe and Bill Choi from the Shanghai.
Rely on challenges yet.
What well Michel for all your work with them you know what you don't.
Funding for the true.
And it sounds good on me for that.
Yeah.
And now you're probably well I mentioned that carries on the timeframe and that's the gym and shouldn't be of why you think one day.
I think Jim and Cindy you want your expenses.
And so it's either not much impact on many of the Thai.
Hi box, Utah and.
<unk> seen that fishing Queen of my dog for Guy shut off for the time I make what might be on a kind of them anyway, and maybe where you think the young him and he tire one and Dan that's the base. So you can find on pardon me I'm, sorry, I forgot that channel Shaw Uh huh.
And Pennsylvania, it's the when you go to the wrong no matter of Joseph.
But from being frankly on like why not.
The other tells you your phone call from it sounds from enough of mail took Oh My God, that's a quantity on that somebody tell me well true.
And if it doesn't pass on.
Yeah.
Okay.
Oh, Okay for us.
All of our model is the case and be free featuring the smart battery.
Swaps features.
The level and focus.
He always the right St and hold them at the moment and other.
Of course.
And as the length of the developed out of new models that can cater the needs of from different sort of buckets and stuff.
Last.
Hum.
The.
The volume of.
Although the losses.
The incident.
That's all the.
On the density.
And the basically all the.
Geographic reset and the use of its please get the alone for us what you'd be Oh go ahead of it.
The smart beds and the device Ken.
And so up to 200 <unk> per day.
But.
The the easiest asking go that route.
For sure.
Oh, the secondly search feature.
The U S and quite.
Quite makes sense from the economic standpoint.
And because also of the AR, that's top of gene additions and network. It's really a feature in the U S. So so far with the have the plan to enter the small okay.
The smart battery swap system.
Okay. Thank you on key or one one of the last point.
And the last year, there was an announcement that they had signed the underwriting agreement with the quick battery exchange the vision.
And they gave us any update on debt agreement.
Yeah.
And especially at night.
I'm, sorry, I can't see one of my time.
Okay.
And last year, there was a public announcement.
The underwriting agreement to go public on the spot and that will change.
Change for the quick battery Exchange Division.
And the company gave us any further update on debt agreement.
And that's not the ones you so much and union can you sort of thought the out there you go the human when the gotcha and enjoy each and going on I Gotcha and shop now gentlemen, the chances for boards.
And you can't show up on Yeah, they'll go on from.
And the thing I feel and second the shifting from the ocean of must be the things that ship on Nokia Sean Zhang.
So the net woman.
And the Guy.
For those of the Street father, Sungard Sungard someone's yet you go you go through some of the same thing share you got the 10, Jim Craigie for food for ease of for.
And as a source of lots of Sanjana tusa of junk what the deal with the total timing of those with the either the guide for sure.
She was I took a shot and winner.
The change it up some big ones are the unsold nuts and good things done and that is what would be Austin neither.
And quota as well and they found the sooner Gucci query.
Sure.
And the Sun you for jumbo and good ones and the clock.
Okay.
As for our IPO for all of a subsidiary of Smart battery swap and.
Entity, it's been progressing pretty well we have the commission free quick question of firms to value of the IP now.
Annuity is PNG and certified public accountants, and Wow lots of times or are the highly ranked from the.
China So.
So the sofa.
Being the the work's being done but as for the general timeline and PR.
And you could get leased it we estimate it will roughly take to the fleet, yes to complete the whole of this thing.
Thank you.
Thank you. Our next question today is coming from Mike Pfeiffer from Oppenheimer. Your line is non life.
Yeah.
Hi, Thanks for taking the call I was just following up on that last question about the.
The the I P O you know with the.
Backlog in Cheyenne and for the newest the star exchange it seems to be taking.
You know all of a much longer time for companies list and China, you were just saying two to three years and since Kandi is by definition of U S. Domiciled and listed E. The company traded and the U S and China EV companies trading and the U S have much higher valuations and similar China listed E V companies, if it's not too late to change.
Would management, maybe consider or reconsider spinning off a small portion of the subsidiary by way of of Tradable stock rights offering to existing kandi shareholders for the stock purchase rights offering and maybe of warrant attached. Additionally, the cost to do this and the U S would be negligible not much more than FCC registration.
Cost of NASDAQ filing fees and you can even bring and the U S based investment banker with the retail clients. The standby underwrite the deal for small and additional costs, which would also give kandi.
You know research analysts and so.
And I would think this type of deal could be you know very positive or it could be similar to of spak with much less dilution and much more investor and loyalty.
But even better because of the structure of shareholders for not only have anti dilution protection under the under the ability to use the exercise of sell the rights on the open market, but also have priority to buy shares at the IPO price and even get a warm bonus and my question basically is.
You know would Mr. Hu considered doing this and.
And the U S.
When do you want the ease of share and use of companion animals and the once you something of a bunch of cause and he I'm sure I've got drunk washash of non sugar, how cheap the dotcom coming out of my tenure here and that's N and usually you got that make one of the shelf equals to the well.
On the ship on you'll call me of course, no woman niches of alcohol, which type of he proof on the Sonic what's wrong, what's your share and FIFO still true slashing heightened the.
Hi, Thanks for the last of Pfizer and how the equal from who.
And well should not true, we all kind of a changeover.
Angela function and I shall share of council and I teach the Joker and sounds needle back a total of Moody's shall share that just on a function that should not have the T.
T shirt shop on.
And talking about and I always go shop and take on a harsh of parkway and from jazz and I'm sure. He the pole, that's the who don't the genuine for I can't suddenly because of the hot and high quality teaching from Jack Shelton, the tow hull like and it's true yeah.
Gentlemen, hey, Oakland on when you come D for the Yeah, Joe Paul Gong on debt.
The way.
But don't you of what they were the ones you Joe share what else you're for quick called the kitchen function of 71.
And I'm sure.
First on kind of share for sure yeah, Yeah yeah.
No wonder woman and cycle and then for Pinching My friend John E day, they're going to get women and that's all coming from go of Penguin, who not sure of the woman's like the effect, one and it sounds so not the kind of issue for us.
And going to your answer.
And so Tom and Joe Kim and I like.
Sure.
Didn't you took on more channel of me yet.
Joe make well if on me on the Shanghai.
The cause.
For the long tail on them and so as you can cool tech.
The Python and keeps one eye the doesn't come and you see that.
And so you tell me what is the Indiana condemned Mayo chunk of the call and say, we're matching what Penguin who took on.
And I think total GLA.
Yeah, but pay for itself on the other confusing for me.
The central Pingo.
Okay.
Well first of all thank you for your great suggestions Ah So basically right now after the movie.
Very soon from a lot of professional firms engaged in P. O C. All of the evaluation they believe that of the chance to get leased the Oh.
All of the <unk>.
Batteries and swap unit, it's very likely and plc, yeah within two two for years. So basically we can see the that the p/e ratio.
Yeah, Jeff of higher for all the industry in China compared to the U S debt.
That being said, we also engage some of the professional comes and U S. T E Mail it you know the and.
And now the other of outcome you know, what we can do and can explore and the cap and market in the U S. So definitely we are lumpy and considering about debt pathway as well at the mall.
You know, we may do that and we will see.
Thanks.
Thank you. Our next question today is coming from Mark Kehoe from Switzerland with future. Your line is now of life.
And Hello, everybody my Christian what concerns and the balance.
The produce scooters so and.
And last year's update to shareholders. Mr. Hu said intense of the and produce betting thing scrooges should exceed 500, thousands and 2020.
And we expect sales to exceed 3 million units and 2021.
But you gave no value of either of the surprising new orders. However in September 2019, before the virus shutdown and can be made the similar announcements for our new product line, which right kind of these wholly owned subsidiary and young country of vehicles Co Ltd, Kandi vehicles and D. J group regarding and initial.
Each of older or three.
So again, the telling the electric scooters and sites for Mattel.
And as electric billings and scooters.
The value of the agreement is expected to be about reminbi $500 million approximately $75 million.
This later order book to calculate at the around $88 per unit since the company did not put any value.
Late 2020 orders.
It did in the earlier a bit older and.
And the investor might be left to assume the balance of where else. Jim you alluded to 500 thousands of units two and for 2020 could be as much of 44 million based.
Based on kind of these total quarter for sales.
Freedom billion net assumption would be quite wrong and a few crash of two follow up.
They can be reached at 500000 estimates for 2020 and if so what was the difference between the 2019 units at 88 each.
And but both sold and 2020.
And the take the question.
Is the 3 million 2021 expectation still available and if so is it still at the 3 million units and if so what is the value of disorder and can you tell us.
Who the major buyer or buyers and dislocation.
And thank you for the question touch on when you're sure you're playing on the Dove Channel are you sure that when she and I.
And I thought your initial thoughts on site, Okay, cool and working with Johnson with the car wash and kind of P&L pop and sure. So on the honey and the shown on the without all the Shebat now actually at that on a union on AG and I'm glad that I'll talk on some of them right now, especially not on just email schedule on getting done and I'll get you got to keep the judge yet on that.
Besides site you're checking in on each.
Each of our lots of churn each of them and that's the initial hall county, the EPS, you want them and I jumped on.
These are the trends of sickle cell.
And then D G L CIT and to meet changing on the P. P for pharma in China are eager for the central on tight and I'll hop on truck, well, Sheila and Hyatt and truck Downshift, Angola, and he got its own so yeah, yeah, yeah, yeah, maybe.
So you tell them the bathroom, so actual kind of make you go down and I shall Pasha bombing and the chocolate.
Not on the army managers I think the male shower and Champs, you know, where the hot and Joe kind of like on the ample yes, Josh on top of the attach of Crinone can actually of clash each oriented at the top and all that and.
Not not equally each of them eat sleep play the y knot.
And he says he wants you to work on social and single Pinion and trust on social and less yeah. Thank you and some of that but that's the history also on for another one of the two that you've had how long the people go on here share the ASEAN, India count issue for the adult E. G. The sheer one head of social and what that all of the fine and I'm away from what that exactly each of them.
And you know something about attach it might go up.
Yeah on the part on the on.
And he entered the truth of what the Hot Hot.
So there's a bunch of share I'm not right on.
And the downstream use of somebody one pipe to the shallow and short haul high share of question and since you are and who quite sure of the hot non JV shallow and the C band Gotcha, Gotcha and wash out on you know.
One of those children calls the bad Daddy's the D P and the shell social for J P share, Mike and shake and session some of the teacher.
Okay.
And I'm going to go through and the Guy.
The channel one is for.
And for that same time of course show on Pi and Mega of fishing.
The city of good kind of you show what would you sort of go north and the time that for payers and for the TNT episode of the Penguins of things.
Alright, and Harley and you asked for kind of course, you also for the day one part the guy.
And the opinions of again.
Part of the trick against the.
A couple of calls.
And Jonathan I wish I thought there was sort of it.
Let me begin.
No matter of time.
And that's the kind of cheap or she also talked about from one type of payment for the group.
For the guarantee from you.
Yeah, Yeah, and so you're tight on site, but on the Samsung <unk>.
Pings and <unk>.
And I forgot P and getting the chunk and I thought I'd do it for about six of them.
It's a guarantee.
For the Germans again to you and I'm, especially again gena. So we also on my day.
And figure out handled she could you 800 should come out how you O'neil.
And the took the torch on what might the.
And I'm trying to pick up here and for that.
On May one of I O and figure out the guidance.
And she doesn't like.
Figure of one stood up sales.
And that's also the migraine.
And so she could that food and beverage.
And you have time job and I'm a.
The other teach you and a powerful and in fact.
John and good day.
The true well manage it took us and walk them through the job comment on timing and at the same time.
And so I'm happy and said that for me.
And I see yeah Prime and so you go into you and me.
Yeah and Mega.
And then as yet.
Share finally take the time of Aqua, that's just not sure what that John and I got a D. G O the Fuji.
Oh, the so basically.
First of all of what that might be something and standing here I think that's a squirrel manufacturers. The motors for the school doesn't balance and scooters, but not really the whole school that's per se doing 2020, no escrow manifest for and so on around 460000 pieces of motors.
With the when the price of around RMB 50 to 60 for each moda.
And doing a 2021 of them.
And what drove plays to the other themselves more than a 300 and mill on three New Orleans.
For the balancing and he goes and and and the scooter and due to the roadmap email and pelagian, we intent to waste of our unit price by around 15% up to RMB 62 78.
Each quarter.
Currently we are working with all of it was the.
Cost of must be the motorbikes and.
Primarily from debt regional center and sit down on.
All of those they get authorized by the Hangzhou, CCAR, which more than 500 patents in terms of the school of different balance in the school of design and development currently and what came with four to five a me too.
The two is I think the Patterson and authorization to work on behalf of the scooter.
The trend.
And then theory.
And when you add on women and took a problem and I agree and I got a P J O changing that mega.
It took out the one question E.
China and Mega or to go for at home and now my whole logic on that Joseph D. G OS and Mayo Sudan and took a concert she got the suite yeah, Yeah pulled out of how the fund me win T. So of Ciena men women and so they should tell debt.
So the two of us at all on Pi.
So the other guy and I'm trying to issue credit I know.
And I'm, a junior and that woman and she kind of an opinion and go once and for total of one time part of that and make a try.
And I need a chain of cigarette suturing R&R and all of you.
Oh, and the joke, sometimes because of your time.
So as for the transaction from D. G O.
You know, we do and last year, we noticed that detail accurate, that's not get authorized and that the pattern of Hangzhou and CCAR and that's why and.
And doing 2020 the only.
And I travel and most of this fall.
100.
100000 east of pieces with that.
Those are all right.
And in this.
Yeah, we are working closely with Congress to get all of them caught us all with the.
The authorized under the patent of Hangzhou Chica, and we expect that will be a more volume and production company for the last year.
Okay. Thank you debt that's very.
And they're trying to look and.
Thanks, a lot towards the M dancers.
Thank you. Thank you. Our next question today is for me for about the Basra from Wrangler and consulting your line is that a lot.
Yes, good morning, or good evening and.
Thank you for taking my question.
Maybe it's just my line, but due to the.
Heavy electronic interference of the.
Most of the.
And <unk>.
CFO of it didn't really catch what.
He was saying about the deployment of the better the quick battery exchange of China, which is what I would like to reiterate the question to ask how many units are actually deployed and the huntsman.
And the.
Numbers of the vs are being serviced the debt and what do you expect to have this the sales for this year and if you could give some color on debt.
Sean on his list.
The income tax.
And how many of the teaching tool and you've got a bunch of that.
And I'm traveling and Josh Joshi, Oklahoma Woman day, classify and Deanna just shows and will change the and hope on social and I'll talk about hot and the whole 19, yet she shouldn't matter too harsh on E C.
And the Dan on truck social on the on each and sorry, I don't have pet Yahoo, now on the other union and.
John Please go ahead.
The social and E G.
And.
And thank God.
And that highest for one yeah hydrocarbon dance debate the tenure of your T cells.
Or should the HIFU and yoga and.
Wait two months of the time I'm on.
The senior women, who are on the true Buckeye for.
For the Sundance, Utah.
Yes.
Yeah.
So during 2021, and we expect to as we leave.
And 50 pieces of that smart battery swap the devices in the China market. Meanwhile, we released a lot of 3000.
E V H, one and for each featuring the small equity swap features and trying to market the smoke.
Yes, and Uh huh.
Any of those the two deployed so far.
On your door shall of tied down.
I thought the washout.
Are you asking cars or cubie at both both of the pair.
On the visa being sold for the service companies that use the Greek battery exchange isn't it.
Has touched on sort of the children.
And.
Well I guess, what I'm getting a show of pay and cultural change you know, what's the washout and Jim Hoffmann Dol on my long history of sound more.
Right.
And.
And as the base.
Somehow the game towards what Youre not sure Bob Hi Tech Center.
And on my math, and tandem Chitra and I Didnt call on juice. The taught hurdle to sort of doing that until we got true shouldn't that Lucius that hope.
And.
So so far on.
They are free pieces of debt.
And we swap the bulk buys that are.
I read the I'm sick of later on to our customers.
As for the E V is there more than 90 pieces of debt can be trending.
Featuring the smart batteries and swap interest already deployed the to our customers.
The car rating level.
That's that's very helpful. Thank you since you had the additional income earlier this year from the disposal of your share and the sanctioning back the geely.
Having a significant cash surplus oh, you're going to put the two used to start your own the E.
The fleets or the quick battery exchange base the cause.
Customer services.
Are you, losing in all of them and say Gee.
Sure.
Just for my function there.
Yeah.
Although of course, you and that you wish on that day.
Do the kind of hunker in terms of how help me out for that that's risky and you'll Michelle and go out of Kashi and so on since you guys do not want yet for the.
For by true Zellweger Fu Sheng.
Okay.
Well my simple way, Jim and true thoughts for sometimes of all of them over time, you took on and figure out for China.
Yeah.
So at the momentum we don't plan to engage in this field of stuff at the.
All of it all but we of course will be in the work as part of the service provider of the collared and platform.
Thank you and.
And since you went for the partnership with China's day period, one of the largest companies on Earth.
<unk>, which was terminated the due to political precious because the QP ex was not opportune at the time do.
Do you hope to revise this relationship the state grid anytime and.
So half of them deploy your.
The quick battery exchange the station.
And of course, you from what's out there of Mario of Quad yourself on D&O and what's the what does the doctor what we have done for the long shot now of tissue tweaking them and the simple question and you know what's your what's a swing of course yeah.
And what's out there of moms from Coca Cola and young so for downtown La and true way comedy the Chi.
She told Fox one yeah sure.
Yeah.
Hey, guys and women thought day eating and that's the whole jugendamt weighted at all.
And so you didn't put a figure out the got pluses for long Sui, who and I do Mayo and all that.
And Fortunately not much and so you have talked about many of the Mega.
And of course that go on for Jim Dan on trip for me of Genco for Ya Qin Dana.
For Deutsche that you now Matt.
And why Sean Jean Hu, the agenda and she can.
Pending for the wind down away from that.
And you'll use going on she yeah cause the hurting yeah.
The full way.
For instance of how poorly quondam wasn't it.
Our channel you have and assuming the pendulum bulgari, yes about one day to go.
Sure.
And the Ministry of the stray too for that took out since the crippled either for was challenging and think watching your idea on them for a possible for in total one tender and the more fun Dam zone can you for good deal on your what sort of woman and Dan One Shelley Street wear and Shanxi single woman the wind down of superior Hawk.
Yeah, Hi, So you don't want it because of just pushing well mentioned she doesn't want to for to go ahead, Jim and I'll switch and I problem, and what's looking and unfortunate things and what's the cool and I wasn't on the convincing you know on wage.
And with that.
[noise], so a sort of Oh, we have started on our cooperation with the state grid. That's the earliest 2010.
But however, due to some policy the on not supporting policy and and must be at the time. The corporation has not been used to.
And they go on in.
In October 2022, all company and enter into a strategic agreement with the judge on state grid electric vehicles of his company. We just the subsidiary of the state grid and.
And the area of the pad the exchange appeal the electric vehicles.
You know now we are in the.
In light with the the policy from the Golfman for example.
The plan from the golf and the two of them.
And sort of in 'twenty.
The bad debt the.
That is what is part of the area of focus and the bell.
So we are now and the timing our plenty of real estate up the model.
And all of that to have the state grid to develop for the so that's the plan I mean, oh, the ROE is being like a pine year to date of the model.
And the design and the of up to a state grid to develop the Florida.
Florida, and a set of like in the whole U Oh, China.
And that I think of it.
Thank you for adding the color, it's very interesting and good luck for your I P O and Shanghai or maybe as the spec and New York.
I'll go back for the Q.
Thank you.
This was a fish on holiday for sure Hum too in the hall.
And in fact, all of the shall share what are the issues and meet with the channel shifts you might answer Shaun.
Thank you.
Our pilot.
Okay.
Our last question today is coming from Jim Parker, a private investor Your line is that of life.
Thank you good evening and your announcement today you had the R&D.
Funds could be used for development of sports car could you elaborate on what you mean by sports car and is that for the Chinese consumer or the U S consumer.
It is the K 22, and example of the sportswear, but just something else and mind. Thank you.
No.
Touched on lender shows almost no one notch on Michelle and mostly on Tyler on for Joe.
And you buy and Joe Paul.
Thanks, Jack and social and the child population of my and I can't think of true way whole phones I from Washington on how do you like what's the top deal, which was the alcohol and I'm going for.
The K a shot subsection of gel foam.
Okay.
Jump off for the new Guy.
And so I'm going on and what puts it on mic wasn't on my job.
Parts of the leader.
The only if you wish and you're all familiar kind of part of the leader I shouldn't that woman and things are kind of on them and took a turn it on on it.
And Mike what's the outward shame on me.
The appeal of a trend.
Hi father.
And I would make most of the times when losses on Beaumont hotels for.
Some of them at the two which are true shall I want my own credit.
But soon and that guy and so it took them for that Mega.
Can you tell a lot of scope on a woman and she is on the equity of P drop out of zone.
Okay. So I mean sports car on destination, that's and that's the.
Some of the dynamic performance such as head of all of them.
And that's the reason of top speed.
And of course, what I'll do the right now and try to develop the sportscar with the standard that's off the general market and coding.
The U S market and European market and the.
Cause debt and his teams.
And yet.
All of us what type of widows and all markets, including in the China.
And of all cats, the U S small and even your European buckets.
Hello.
Thank you we reset of our question and answer session I'd like to turn the floor back over the management for any further of closing comments.
Okay.
Yeah.
Thanks for the kind of Jeff Hi, Jonathan I'm judging the other if we see the woman so gotcha.
For the tenure of telephone debt, so cool th ally woman channel Cui.
Yeah, and don't really need more work and buy the product.
Being in Shanghai, Guangzhou, and she's on Mi triangle for the Union.
We are the only three of the hall.
Sitting in for two P M and she says I'm probably too high.
Oh, I'm sure and Gmail, the Ames has been tuned for that Nicole of patient shop for them and you only you were challenging and women's and we like to 90.
And especially a few ways jumped on about two of you don't want them and we like.
So you could see the Don.
For sure and chanting that gene could say well yes.
Tenure, and if we thought the Jetblue excuse me I thought the outside yes.
Thank you again for attending today's call and then.
And I think the noncompete restriction from the function of affiliation and enables us to pursue the EV market more aggressively in China as well on.
Expanding our application of our F 16, and battery swap systems to maximize shareholders value.
We're supportive policies from the government and sufficient cash and working capital. We believe the use of had hold a multitude of opportunities that can deliver strong operating and financial results in the coming quarters. This concludes our call. Today. Thanks again, you may now disconnect. It.
Thank you that does conclude today's teleconference. You may now disconnect your lines and have a wonderful day.
Thank you for your participation today.