Q1 2021 Kandi Technologies Group Inc Earnings Call
[music].
Greetings and welcome to the Kandi technologies first quarter 2021 financial results call and at this time all participants are in a listen only mode.
Brief question and answer session will follow the formal presentation and.
If anyone should require operator assistance during the conference. Please press star zero on the telephone keypad at the reminder of this conference is being recorded.
And is now my pleasure to introduce your host Quinoa Luo. Thank you Kila and you may begin.
Thank you operator, Hello, everyone. Thank you all for joining us on today's conference call to discuss COVID-19 free though for the first quarter of year 2021 we issued a press release covering the results earlier today.
That's especially since the available on the company's website as well as from Newswire services.
On the call with me today are Mr. Fu Xiaomi, Chief Executive Officer, and Chairman and also makes the Alan Leong Chief Financial Officer, Mr who will deliver prepared remarks in Chinese which I will then translate after that we will have a Q&A session.
Before we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995 forward looking statements involve inherent risks and uncertainties.
As such the company's actual results may be materially different from the expectations expressed today.
Further information regarding these and other risks and uncertainties is included in the Companys public filings with the S. E. C. The company does not assume any obligation to update any forward looking statements, except as required under applicable law.
Please note that unless otherwise stated all figures mesh and joined the conference call Art and U S dollars with that let me now turn the call over to our CEO and Chairman who sell me go ahead Mr. Hu.
[noise] share your free time share.
Congrats on your hands free.
<unk>.
Hello, everyone.
Yes.
Hello, everyone and.
And thank you very much for joining us on the call today.
Yeah.
And now and you can do.
And then each and every man women and.
Cold War <expletive> portion of it.
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Channel right now.
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And then I'm happy to share try and push on and they didnt hold true.
It depends.
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We want them and what's the time.
And your instrument the Gordon non foods.
The pins on two of them and the O J.
I'm doing the I know you tend not be on.
Hi.
And what kind of woman since I'd give you on mute.
Hi, Paul and Tom.
And then causes the sunlight and learn and be neither.
So on pool, Shashi, you're doing and what your truck.
Corruption on peak, but all of the Gordon.
Uh huh.
And then doing the personal.
So I'm seeing momentum jumped pretty thin and light on for Paul.
Oh, I'm probably on a phone.
A woman of increasing.
And it's increasing free yogurt.
It seemed I mean, the impasse the tone.
Hello, and thank you Peter.
And she is the woman that easy to model and I feel sure sort of like the lemon and co op.
Uh huh.
The total revenue for the first quarter is nearly 16 million.
And this is like I said, it's the level of the same period last year and.
And since the last year, we have seen on AR and most promising growth opportunity on from.
On the shortlist and small evs in China, which led by a brand called willing ever since that they have launched on there.
The shortest since the E V that has the.
The trains are in the.
This market and also of heightened and electric utility.
The utility to run vehicles in the U S and wishes he really I'll say, whereby a lot of the young generation. We are now focused on mass market by developing vehicles for the settlements with a cost of RMB 30000 or less.
Which is approximately U S dollars 4007 hundred.
And for China, we are developing a neighborhood E V.
For the U S. We are working on fully enclosed high and air conditioned.
Pure electric the four wheel drive U T V. We expect to launch both vehicles this year.
And based on the financial statement and you will see a bottom line loss, which is due to our investments in R&D for the new product, but if you're looking at the gross margin. We have achieved of over 4 million which is.
And beyond them.
She is exited all expectations.
Yeah.
Junior out of your friends.
And he shouldn't do.
And so on and.
And I see and so the woman so you'll use the that's looking for that.
And just help on the Super Bowl.
On the woman the three O chins and things.
Great.
Yes, and gala eating the Yankee.
And then go please.
The women going through the product.
Sure Don woman, but you kind of fall off one month I created Congress. So go.
And I think young woman and the teams of neat things.
The women.
And as I G G four jobs.
She and so forth.
And so just huge without moving all of them soon.
Yeah.
In February we.
And for enjoy how quickly transfer agreement with Geely to sell Kansas equity interest in function.
By activating.
The function of partnerships, we are no longer constrained by the noncompete and restriction with the freedom to pursue easy opportunities more aggressively and with the additional cash we can't accelerate our growth.
In addition to people up the new products directly we can enhance our competitiveness by acquisition.
We are actively looking for targets suited to Kandi development roadmap, and how big and communicating with potential collaborators.
And what did you do them on and why I'm, saying that a lot of times true.
In terms of the same time should the cool pool for your front log on to the jumbo and changing.
Since June of high.
And yes, so soon and see what Matt I don't.
Let me and Veeva.
You bet.
Yeah and Tim.
One of them.
And corporate goals.
Oh, yeah, you're doing them.
And one piece of it you used to talk to the woman and Kumar I'm going to the bundle.
Oh.
And the first quarter, we completed the relocation of all facilities in early April the old factually size passing spectrum by officials of all sticking logic of Lukman zone.
We expect to sort of and we see the remaining amount of over 116, Neil Young zone or around 25 million of U S. Dollars at the same time. We are also moving all of your subsidiary headquarters to a newly purchased the building in Dallas.
The economy, the Levi's women's journey the Taiwan.
It's on par seem routine and shop idea.
And then we want and that's on issue chicken on the gene.
Well my bets on glaucoma.
And good.
The charge and the time deep on gold and silver.
And not pumping and go get.
Oh sure of the Guangdong share.
Golf and kind of neat.
Four months here towards the end.
And for that.
So on yourself on the football cleats.
Woman and that's turned on the paint.
And a woman who's on the unit.
So what's been the agenda, which is the heart.
And on what she took the comedy the only a woman and she wants to see the.
The Wheeler woman and she died.
The fact, we like.
And I'm sure the.
And then all of that Kingdom.
Looking ahead, we are going into the rest of the 2021 with the incredibly strong balance sheet and I can't find all of the initiated and we can imagine.
All of genes in both China, and the U S enjoys the productivity of new E sessions, and the attractive facilities, we awfully of they'll kind of strength from the function partnership and of course fully exercised all creative minds with our Strauss of vintages combined with.
And the industry tailwind of support from both the Chinese and U S government for E D. The future all the luxury of mobility and for Kandi is the best we can imagine.
We're looking for ways to reported exciting progress in the quarters ahead.
Uh huh.
And to your point in the case of a win win keep on co on the Mega and it sounds like on.
Most of you and I'm sorry.
Mega and we've I wouldn't yeah, Sidney and I find them on semi.
On.
That's it.
Let's now start the let's now start the Q&A session and I will take the we would take the English of questions and translate for.
Mr Hu and because of our CFO Alan is really sick today and he already lost his voice.
And therefore, I will translate the answer in English on behalf of him.
Yeah.
Operator, Please go ahead.
Thank you we will now be conducting a question and answer session. If you would like to ask the question. Please press star one on your telephone keypad.
All information told him on the case of your line is and the question too and you may.
The press Star two and so you would like to remove your question from the chip.
Participants using speaker equipment and may be necessary to pick up of your handset before pressing the star of Q.
One moment, please while we poll for questions.
Okay.
Thank you. Our first question comes from Arthur Porcari with corporate strategies incorporated. Please proceed with your question.
Congratulations and wish you a really nice Q1, let me first note and the company not taking the $22 million R&D charge and this quarter or some 30 cents a share which was 20 times more of that you spent last year it would've been a very profitable quarter.
But let me go on to the subject of my questions on <unk>.
The background first my question has to deal with Kandi is ridiculously undervalued share price. Despite the massive E. The stock correction underway from Crazy enthusiasm and a company just having easy affiliation and current levels and there's only one public company and the EV sector, whose stock is trading below its year end 2020 book value, which by the way it's gone up.
And thats kidney with around $5 per share.
At year end, and then book value and gains over $2, a share of cash and short term investments and no debt.
The next lowest and there's still trading over two times book and the average is around seven times book.
And if you add and Kansas pro forma profit or the insurance. This year of another 65 cents a share from the profits of the Gen y and pension cash.
Uh huh.
And I'm getting a strange tone over here, so I don't know, whether it is true or not but.
Anyway.
Well on the site.
The cash sales being booked as of last quarter, and Kansas book value with almost 40% cash ship by year end and be up to around 6% of quarterly share.
And then in this current environment I've not heard of any EV company, our top management buying shares.
Buying shares of their own company.
Historically, Mr. Hu, just three years ago, but.
Some 430000 shares.
And with an open market value of over $2 million was one block and size 552 of share and less than two years ago Kandi bought about a half a million shares of its account also at prices above the current.
On the other side Kandi shares worth of $160 million late last year at around $9 of share.
Kandi wants to make the statement is the just how ridiculous the undervalued stock is the share buyback or significant insider buys to catch a lot of attention so on.
My question is while sitting on hundreds of millions of dollars of cash and no debt, we kandi or Mr who consider buying some shares here around or below book value.
Okay. Thank you for your question.
And what was it in Shanghai and Shenzhen to hook on the day the people a bunch of of how hot it kind.
The fit and how the Windsor and actually Guang can be on the.
The equal to share that whole of course ethical job Quechua JP on the entre and a each of those share.
And on the quinoa and keeping your eyes, Yeah, charger and exactly what you shouldn't count on.
The two high and again <unk>.
Can you touch on the Gulf of the gel the gel each other and I'll be your lot count glitch, and the and the Tommy and Sacha I do with Goldman got you and they'll have.
Paul Koala.
And yet.
Yeah on Meda, and 17 cooler Glen Glen and he told the pinch of mail of chat.
Hey, Mike are you should be down the the chocolate of golf and ask yourself O'shea of jelly saga of beta telling me of that year.
And it doesn't go to cash on painting of onshore bunch of D. A.
Phone shown triangle quarter the.
17, 19, who gave the people close and let you build upon the woman does your golf ball, Bill and Bob Edgar and pro forma fault alcoa's share the leave the share Nagel with add on he may yet.
And I'm not sure of that young of like E.
But and you can call that he's just anything you buy the company cash and I'll kind of flip adult nagel, you'll kind of Romania and.
And I thought I don't kind of just talk one teens yeah.
Hum nail change will you make that channel.
She took on through the Gulf and Glenn here yet.
And I wake up with nothing.
A woman can be equal cheat and the does.
So she doesn't eat and Oh who's on Yo Gabba <unk> yeah.
Tell me Johan Dahl the childhood of 10, he shops email of English and attendees and.
How's the mall or the chocolate my line of thought that.
Ashish and cool.
On.
The whole Yogi total all of them by month of.
Go on my luck.
Got the sushi summer and the Coupe shocks.
On the whole kandi equal to the jonquil locked up with all of young and tender.
We'll eat the.
Don't you and the Jupiter two tenants of coupon of the chocolate and my other gene with Chevron local share.
Chad and Yankee.
On E crucial hoop houses on a lot that you eat and E media teams Jacobi and make with Joel me yet.
And we will accomplish and upheld days weeks of the equal.
And I'm Nigel Hawkins, the non godfather of Xiaomi calcium channel Waco volume on the local pill lush and meet with like Waco, I should call one of the playbook.
And the Barclays and Shanghai, Guangzhou, and see where the one piece of it that comes and that younger of hoops of bullish and zing lots of that mail trials of the Dutch and Hershey shovel quake of Holly.
The <unk> gotcha.
Yeah.
And.
Hey, guys.
The comment from a door.
One of the.
Took a free line up yet Tim.
And that's at all of them.
And on the diesel.
And as Shanghai and gone through the quarter and quite a free.
Zinc lead and lead all.
Definitely.
And.
The two women to the.
The content.
Thank you Paul and good T shirts, and I found your balance.
Okay.
Okay. Thank you Lee and taller.
But anyway elements of it.
The other winter.
Shallow them and you assumed on the path to go on and I'm quite Vijay and some time on board.
Sure Jamie.
Thank you very much for your question and they'll go out on to your hub shares on my answer is very simple.
We know the company's market value is seriously undervalued.
And with the need the company's valuation world Wilson and be more rationale and be back to the reasonable level and next quarter.
The same and will look even more promising but we don't have any current plans. If we do have an action plan, we will announce to the market.
Yeah.
Okay and well thank you very much.
And that's kind of of what I expected, but the.
Great and we're going to have a good strong next quarter and the rest of the year.
Thank you very much.
Okay.
Thank you. Our next question comes from Michael Fear now with the focus Tech investments. Please proceed with your question.
Yes, good evening.
My question is related to two two parts one is a clarification on your hoverboard.
Activity and.
And the other related to reproduction of the company.
Of the annual conference call and quarterly conference calls.
The first part of my question.
And there seemed to be some confusion on how many hoverboard powertrain units were sold last year.
Due to.
And some confusion.
The seeking alpha reproduced the 2020 conference call transcript.
The transcript.
Said of 150000 hoverboard.
Total units were sold.
But the U F O at that point.
And the transcript clearly set.
As.
460000 units were sold.
All.
So the seeking Alpha said kandi was raising the price by 50%.
And it seems to us.
CFO.
15 per cent.
So we've got it.
Yeah.
Confusion.
On the number of hoverboard sold and.
And any price adjustment.
Which.
Relates back to this.
And the lack of official.
Reproduction of the call.
And I think fish.
Reproduction of the official transcript and by the company is important particularly in view of the increased and.
Institutional.
Ownership of the company's common stock.
And Mr. Hu, please address that issue.
Thank you.
And thank you for your question.
We'll go on and Hasher, Teo and can actually applying the answer sure Michel on the T true, Yeah, and Barclays Xiaomi on the cheap all day.
The Oh.
And thank God.
It's still shipping and Huntington Beach P and control the P&G. So here shortly on the way on.
And actually illegal and immoral meals, which as I said, you won't reach a whole now both of them.
<unk> stage of beat little teaching, our young and C. C can cut so you cannot sell shock on the whole way of the onshore on the well.
The day off where you show on your CFO and yeah, but she can share and shoot attritional loss share one share one glass the N D day.
And you put it all.
We wish him the pickup he looks largish specially all of that Oh, CFO, which of your short of ship Shaoshan, Los Angeles Orange on the bottom of your shoe will cause she's not GMO free ride I chose the problems you will share.
So we sell and they sit down the.
And.
Hobby ontologies on 12 of the whole way and though you go into the mail.
Sean Zhang halfway to our Guizhou Shanghai and go up.
12 of the Haynesville sale was I'd say of Tau issue and sell Mcdaniel thing you'll hear from Joshua right.
Towards the end the way you're like Oh go on to the beat and all I totally Townhall license, we're going through now.
And that was on two of those out zone.
Wish him much insight for five year old young wildly the chemo.
Yeah.
Please on kind of Sydney and I wouldn't see.
Women.
And that's it on absolutely not shuang.
It's a doorman G. So the tundra.
And so that towards the 90 of our fleet.
And I think job one and therefore the machine.
But since the one channel.
Okay.
Your line.
Part of the appeal.
Sure.
The lower.
And so I'll kind of towards of the Dunkin Donuts.
Your line.
And again.
And then with HIFU.
And what do you see the.
Yes.
And think of doses.
Net of speech you May please you can all day, but anyway.
Sounds good thanks, Bob of rentals for.
And maybe with chemo and Tim Coffey of Tijuana and remember.
And with Shannon, So far yes, so you've got the ultra and the total.
Hi, guys.
And thanks for your question.
And we really I encourage you all of the mustard.
Alice can participate and all companies are live call to discuss and ask questions you've actually to increase the the interaction.
And not just relying on the transcript released the Apple call to learn on what's going on and more importantly, some trends clubs may not even the accurate because the line translation can have some misunderstanding so in order to avoid any of them.
So on standing.
We think a slug of not to keep the transcript of the conference call on by issuing the official transcript with the SEC and addition of from what I have found and most of the list of companies in United States do not provide the day, they all Fisher price glib towards the SEC.
Therefore of our current practice is in line with on the line.
Uh huh.
Care of did.
And Mr who address the question.
How about what was actually said on hoverboard share.
Sales.
And the and the conference call and he can he clarify those numbers.
Oh hold on that and actually I mean on though.
And Charles He's on shown on the teams of all the shuffle.
A woman's day sales.
And if you go ping hundreds of the PNG and the shell Shelley on the judicial places on that even when he talks a lot and sugar.
Uh huh.
Yeah.
And Oh.
Surely on and I think the other shortly on that.
Well, it's the net.
The other T cell.
Jonathan Hughes of environments as soon for you on Mega.
This is the new one on the food out the thing together.
Okay. He confirms the 460000 of is correct and the and the.
The increase of the.
And the price increases by 15% one 515%.
Okay. Thank you that helps.
And so my understanding is.
The company does not plan on the reproducing.
And the official transcript of these calls and then the and then a follow up question of on the on the Hoverboard also and the year end call.
They projected the target sales of 3 billion hoverboard units for this current fiscal year.
Victor and still believe that is a reasonable.
Estimate thank you.
And how highly but do you have the ones you'll share is that some of the people on the Unbothered y'all finish on the short arching yeah.
Jean Huntsville or the.
And did you sell down of late that all somebody by the schools the simple high share creep out all of that.
<unk> EBITDA.
And our actual one Hy tech.
Three of them I'm kind of 51, New York and women and their pilot.
Hey, guys and Guy and true.
Probably the one sounds like one of them actually on <unk>.
Non.
Yeah.
And based on the what is and we have received so far and in the second quarter. We think it's on the the number of bleeding helium motor.
For the Hoover Board and achievable.
Well, thank you and I look forward to successful future.
Thank you.
Yeah.
Our next question comes from Mike Pfeffer with Oppenheimer. Please proceed with your question.
Hi, Thanks for taking my question a footnote appeared in the 2020 10-K addressing and R&D expenditure initiated the in December for some $19 million for the development of a new Kandi easy let me read it this amount presents the advance payment to a third party for designing of new.
Easy model as well as related research and development and consulting works the company entered into research and development contract with the third party on December one 2020, with the total contract the amount of $38 $3 million and and advance payment of $23 million as.
As per the contract $3 4 million of the expenses incurred during the year ended December 31, 2020 to my knowledge, there's been no previous information divulge by the company on this matter unless this is also the mysterious Kandi Sportscar mentioned on the last conference call and also and the 10-K a my first question.
Is this the previously mentioned sports car.
And I've mentioned in passing on the year end 2020 press release or different E V and either case can you give us some more detail such a size of the vehicle market U S. EU, China speed range number of seats.
Rice range estimate of completion and released for sale dates.
And thank you.
Have you on ones and how should one dollar show and Matthias should take on lump all of the us.
The loss you can't Ya man and the PS will not keep all of you be Doug I finish each and draw that line manga and volume boxes.
And show you why don't you say the one with Danny Mitchell of share your life type of things and they'll call and began on truck how about you on yeah. Yeah dwarf all other actions will shortly be feel and I'm, telling you forget the is that and Bob and I showed you. Some of you know teacher of morphine crush on one of the young thoughts machine goes what's going on.
And so I'm not telling you on the on any of Xiaomi E. S. E T. Some changing of Yum Farquhar at home. So that's one zone of a sensor Bob by social on me, Yeah, and you put on a useful on share now James on them on the yet gesture on the hunting Union T. A passion of a lot of diatribe on standby special on the anything.
How should what that share that you've had a sort of vehicles that you're saying, it's y and they'll total guar, Jay but TJ Schultz you till bakery and she was shopping with the monthly bumps share not sure. The English of neither on the job Paul Schuler share can't be fell short of our Yum Bach came on data on how true no matter what.
Sure, though on the.
No no no shall we get on and chocolate it should keep on gain on trust you, who don't know Nokia Shanghai Bell, Wilfred Nagel and see what should the onshore the hardship on though.
Yeah, Yeah, Yeah. He says Gee the thing he'd be able shortage whole on the buy sell off sure Joel day, and I wish at home and they go for the I'll make one ozal Omar how she's on guar now holding a tour of the trusts or how does schuh on each home.
And you saw the true cost out that she can Archie I should call Jean Michel hold on line challenging, especially on the thoughtful.
And then.
And then jump on and I used to say.
And the importance of I presume downzone, the anyway, Joe and Paul and then I got the Sydney Harbour.
How about your true.
And I'll comment more.
The figure of a woman and things of that teaching the C O U.
The Shanghai.
And then when would increase.
One piece of all that and I got.
On to that Sean.
And on Chicago.
Oh, Hi Tech.
And this is a fundamental and non Chinese.
So just because you were doing differently.
So your woman, which kind of.
Good day.
And <unk>.
I'll take a shot and try and put out.
And then on shipyard E G maybe what's.
At the time that go.
That's simple and <unk> kun kin, that's and.
And don't forget.
And I know for sure.
The government does that kind of fall.
And I'm thankful and even that of women.
So I'm on I mean be Charlotte and pool.
And then on shipyard.
And then if I may what's the thought on that the churn will.
Pete thank cleaning all of that Gordon.
And again on that.
Hey, guys.
Sure.
And then Matt Thank you Matt.
Yeah, and maybe not to quit the advances.
Okay.
Thanks Lou of questions on this on the sports car of project is still underway and because of the requirements for the sports car a relatively high especially for the air bag. So it's going to take a lot of longer time and should be ready for the March of <unk>.
Launch, but other president and what we're happy and working on is the shortest and small electric vehicle and the high and electric future.
The only terrain vehicles like I've mentioned earlier on the call due to a lean company launch and the short is just a short distance evs in China. The market has been really hot and we are right and I'll focus on developing the two vehicles the short distance the.
E V and the high end electric the U T D of for the China and U S markets and the way of trying to working on the R&D of these cars with a total cost of less than 30000 and RMB on.
On the planning and so we ours are working on on.
And on them to launch both vehicles in the market by the end of this year.
Okay.
Hello.
And you're still down high sorry, yes, I was on mute sorry about that that was of who is the third party and are the only involved and the design R&D and with Kandi building the final release vehicles and if so what facility.
Patio when you're on how sure lots of that one Joe and John I'd say the day, some bonds, Judy you're saying that your share lie likewise, George as of yet bhatia of either I'm not sure. The hold it seems like the school at home.
Hunting and.
She is on filed with the teacher of she'll come to rely on nice.
Like Gordian and <unk>.
Okay.
These are amongst the.
Thank you John and Bob critical comments, and we all have the women for two for near and far.
Uh huh.
And so forth assets.
And Paul.
Yeah, Ken Siegel and channel all of them John true.
Since I'm CEO of <unk> 41.
On.
On the third party is the domestic auto automotive R&D technology company in China. They are many responsible for the dying and research development of wells and providing a complete set of mode.
[noise] fixtures and inspection tools, but the production of vehicle will be independently built by Kandi.
Okay, and then and the last question. Thank you and China historically of the 90000 or so ev's kandi have made and sold over the past 10 years, both in and out of the JV. The vast majority of been sold into commercial service Z Y leasing E. T C very few.
The consumers direct how and to what market will kandi be selling this new easy.
Ah Okay on.
The casual smaller women you can go with the unusual jicama accounting is that what you're seeing and docker and social agile and Daniel.
The trial by that.
And Oh sure couldn't walk up what's going on V P of what.
And watershed social games sales force only a lot of total shelf life on the Jay on the cohort horticulture, Jamie and he'll tell vigilant na Na Tech ally colony plays will go on.
And on social and then it just seemed the Daniel and trauma.
And then.
Bryan and Sean Thank you.
And I don't see if the Shelby that Cindy Cindy women.
And of Sandbox and some banks who.
And that's on me two shampoo and be that day.
And I'll call that the true.
The.
That churn piece of it didn't they make most of the time.
And so on the on the short gifts and small EV.
Targeting on the office of Walker and who the consumer is seeing in China, domestic China market and the AR and the of fully and close the high and air conditions that you'll actually four wheel drive U T E. R aimed at too on the <unk>.
U S market.
Okay. Thanks, and just one clarification and I can Mr. Hu tell us what facility that you'll be building. The final production of these vehicles.
I don't think he clarified that.
We don't have the old when negotiating and when we're going on to work alongside of chocolate Zelle and deny grew up on time keeping from Shanghai.
Hi.
Yeah, Yeah, Alpine doshi of shoebox and I'm going to go back.
Okay.
Okay both of them.
You bet.
Uh huh.
Okay. Both of the will be produced and Hainan and in the future of all of the electorate.
Vehicles are well all of the produced a heightened on factory.
Great. Thank you so much of your time and best of luck.
Thank you.
Yeah.
Thank you for the next question comes from Karl Scherer with range Ring controllable. Please proceed with your question.
Good day.
Correct.
And your coworkers.
The.
The press.
On the.
The improvement in the gross margin from just about the day two.
The 27 of them.
2% improvement the.
The major.
Okay.
It seems on the last conference call the the wrong impression of what's left.
Project and for a total of the 3000 evs for them.
The sources for this year.
Based on.
I'm, just and that's being wrong on the CFO.
The conference call.
And then.
And I assume that for all of your views on China, So probably have at least 3000 and the order flow.
The.
Featuring the smart battery swap so the.
And <unk>.
Good day.
The.
So this number of us based only on the initial order from the system.
With the candy.
The initiated the five years of 300000 the.
Government of credits at the right.
Right and the program.
Silva of 3000, Evs might seem a small.
And number.
The appear to me that it's just the start from this sort of unpack.
Graham of alone.
All of them for this program.
That's not true the visa kick on that hero products required and all day.
Provided by Kandi owned subsidiary, so you'd have the whole value chain, including building the battery exchange of units and the.
This net batteries required for the exchange rate.
And I computing the total revenue from just the first three easy.
And would come in and around $70 million on.
And with that think of all of those kind of the 'twenty 'twenty revenues.
From a new revenue source that didn't exist, even though the year ago.
So the question comes and four pods.
And with the of the three program partners Kandi and the.
Louisville.
She's responsible for resolving the new cities and local operators also of approximately how many cities in China.
<unk> program and talk of the demographic of the third.
Third and fourth tier cities.
Hi, Ken and can I, just the translate yes.
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The first question on yet.
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And then some volume so that's one of the.
Go on for Jeff the channel.
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The shame on us the ulcer.
Ladies and cookies.
Some of what Youre on Chengdu.
Sure.
And so on this project actually is the.
The operators by the off labor on the name for the company, It's George I'll wait on technology.
And they are approximately a true.
2000, <unk> third and fourth tier cities in China that meeting the requirements.
He's the co brand.
Amazing.
It is on active discussions to assets.
This program.
And this is not yet no.
And I think that actually you'll do average home share even inside.
I did and the cat, one and I'm the only all kind of I'll take the one it was not one of them.
More generally and cookies.
The dog.
And that total of one Jim once the antenna.
Yeah. The one thing and then John Lucey. Thanks appreciate it.
Hi, John.
And so far we have had.
And all he has been negotiating with more than a dozen third and a.
Third tier cities about their intention to cooperate on.
To launch the on line right Sherri. He asks you a sea of featuring the battery swap of most of it is expected to sell launching the English cities on.
Within the year.
Oh, okay.
And how does that.
Interface with Kandi has recently signed a strategic Corporation agreement with China National Electric utilities state grid.
It's basically a monopoly all over China.
Every city.
Is that the separate approach or is this interfacing.
On non tech listening to them on time.
And yet you got costs out of the.
Well why don't you are jumping on the Youtube, Google the kidney and Johnny football here could you the xiaomi, you'll know tranche willingly to hassle and Jay will go this year of jumbo the.
On the ocean on Blender, a bushel yield highlights and called on.
Yeah.
Should we all total.
And so again Dan on ships.
On to Tommy Womens and some of that.
That's on.
And that's one.
And so I don't think we'll electric vehicle service company and they are also a partner of all of these projects. So the I'll also involving.
In the aligned by sharing program, so there won't be any conflict.
I see.
So given that the initial order should be around 3000, and what do you expect for the EV sales put the 2021.
From all sources with the.
More and the vicinity of eight or 10 thousands of them all of these.
Well not opinions.
The only thing globally.
Well, yes, your son's yeah.
And not even do that.
And you'll see a bulk of the soil non called Tianjin and does all the time and you saw that channel either not.
And I'm, telling you and at the end on Tito's shelf will assure you of the ultrashort Ma on.
And we thought of blush of patio, and while I'm sure you're going to the wall.
Women and Taiwan.
Tom the.
And so you bought the old funnel and Kenya.
Cash on pizza from them for your channel.
On this soon.
And then another.
And then of agenda at home.
Sure.
Lucia total Rhonda and good luck.
And see if I could.
Goodbye and Sanjay so Jason on Pizza, well most of your eating the food and that's.
Okay now consists of <unk>.
I think Tim the highest level about the true team is food.
On the number of the vehicles, we plan to be a launch for the online.
Car share market is the 3000, because you'll have the understand even though we signed the two contract with two cities 20 501000.
But on these vehicles will be delivered on.
And on a rolling basis.
It's going to take time.
On the number of vehicles that will be directly selling to the consumers is going to be depending on the market situation. So it's the hard to determining the exact number I would the gate, but on a sales number of 3000 for this year as of now.
The conservative tone.
And.
Best of luck for the remainder of the figure.
Thank you very much.
Yes.
Thank you. Our next question comes from Frank Lutterman with Who's a private Investor. Please proceed with your question.
Yes, good morning, Ms Lu and good evening, Mr. Hu <unk>.
The economic development zone of good work.
Reported that Kandi is factory is one of the key development projects and has the lead time before and has the unique with flow.
And the annual output of 5000 sets of battery replacement of equipment, along with other products.
My question is why do you have such a large and manufacturing capacity.
Quick battery exchange of stations since the prior reported number of stations and services only a small fraction of this number.
Do you expect to actually need all of this capacity and if so by went like this but the answer the fully utilized.
Yeah.
And thank you for your question on how long their share of.
Yes, Hello, and why you see kind of flashy fall of Ghana, Congo, and conscious usually go hunt and kind of if I sound more from the Shanghai on churn policy and should go on quite sure of it.
Hunter and I sure E beam and pay the not the gentlemen, and you'll.
And I wish him all classes one of the adult what Jan and I gave the truth on the only and some of that I shouldn't session GA channel and the bulk of the eating poll found all you'll need for each one of the London. The genus one when I you will be the Shah Matin and shuffle Tmall Shaky Shah.
Well the jumper heel involved so most of it on.
No no no and Google of she all of the five Jewish and Moshe on the time, which one's on me on thousands of average hung on.
Yeah.
And again don't forget.
Sure.
The Congress Xi'an type debt, all courtyard, Shanghai and boom and that continues.
So you assume that changing through the crisis.
And this is.
John and Tom.
And when the chimp I call that and then.
And then go to the Moon property the food goes on.
Okay.
So let's say the task.
The hope.
And then goes home and deal.
And.
And he saw vehicle batteries and separation swapping them for electric vehicles, having on affirmed and supported by the government and relevant state departments of last year. So this definitely just the beginning of the batteries and walking operation.
But it's going to take time for the market penetration on and the market demand and in the future I think we're definitely the tremendous so the 5000 and and central production capacity will be fully utilized the by then.
Okay and Mr. Hu give some sort of a timeframe as to when a significant portion of that might be and use.
A lot of quote on the AUM now Okay got.
Yeah. The English is not too sure sure Moshe haulage as of kind of way so again sanjana.
And Jonathan.
Hi, This is John Lewis of should we think Jacques I'm, the CFO of marathon and work with you.
Yeah.
I'm sorry.
Starting the second half of this year you are.
You've seen the pick and.
And the production of a reaching 5000 step of production annually, it's gonna take of years.
Okay. Thank you.
Thank you.
Yeah.
Thank you. Our next question comes from the Asa Yeah private.
Private Investor. Please proceed with your question.
Hi, Thank you. So do you have in a bits of regarding the listing of the battery power.
Our sales subsidiary.
And you asked a lot and China.
And you'd give us some ideas on Carlos I'm line. Thank you.
And how can one issue and you show much of a chance he thought the.
And neither one day on a go on for the shall share and decides on warehouses and make wash on show me or from watching the T y and.
Some of them going on too long and she is taking the husky.
Yeah.
Yeah.
Yeah.
And just sort of on a woman and things of that pinnacle.
Yes, it will make what it would do.
What kind of food.
True.
And that's and that can go on.
And Tim could occur.
The country and good day its own GOR on me.
The only other consequences.
And on comp.
The Johnson and the finding and could you jingles of types of Macquarie.
I'm wondering if on top of that changing quicken the hall.
The company.
The goal.
On the management team is evaluating the possibility of taking on the company.
And two two are to be listed in China and in the U S and I understand that and some investors suggest should do the rights.
Rights offering and the U S and the way of steel are on.
On.
Consider evaluating the and the pros and cons, but us per the current situation I think judge on Smart battery swap technology has the bag of prospect for listing in China are I believe that Kandi should have a listed company and <unk>.
And domestic China and since we will have quota in China, but however, we're still on evaluating all of the on all of the plants.
Okay. Thank you My second question is I think.
And Oh.
The operator, not similar to the jungle.
And so on.
And we know that we have a lot of all walks of the year RCT in China and that's again on a go to question the means on the tissue.
The rely on one and just generally how you or no.
Cash at the mentor he has a significant risk.
All of them.
And any plans or is kandi currently pursuing another entity.
Stimulus and capacity of the extra junk Rehan will help all the cell count of the car and system and the future.
Sure.
And thank you how did the one you should buy on a month long answer of the of lodging of foolish on two of them reasons, especially I come home and she does and soil James that you kind of thought you two to Tango T O J O meal and.
I toilets, and we'll do a good chunk of it not and you put your that are young and took most of the life with the somewhat daughter chunks of the sound move shoes on your phone Gennum on you'll Michelle and quotes that you target the leases that you don't really hung on the flu shot and that's why on a short.
So that's why on the shooting like T and shall Jay but usually the on blood. He goes onto the line and I'm glad you're on the phone here.
She is the thing that happens and that on balance sheets that you'll see without Shinto proof of the orca and made good sense of Shinhan.
So the team found the San Juan.
Switching the assets and interest.
And when I saw the coupled with the Shinto chicken meat.
And so if the foundry.
Yes.
And that's what I thought the yes. It does the talk since the truth.
All of the Joseph.
And I want to close on that it's it's not on a weekend.
The self operating in all of the cities.
The hunt is the leading partner in this project and the heat will negotiate with each local city and true to find a partner and seen the local city to perform on.
Well actual project so it does the it's not really.
And having the having the risk of was just one off later.
Okay understand and.
And all.
Just on having.
A similar or companies are similar on the.
The seamless capacity of the extra jumbo.
That's my question instead of on the relying on what do you think you'll find the operators and local cities.
Okay household debt.
It's the one that Apache says she's on one and not just on pool shouldn't loans on how shall I know you've only got lake, which was the only her and Jonathan on the Cauchy true Jinja, she Tata and not pushing the ship on Obama.
Especially with the outlay of bone tumor.
Okay.
So as I said.
Goodbye.
We have also gone true genius and.
And Sanjay on on domestic Yogurts and for Torchlight, no matter, what and how come pharma partner and.
And so Jonathan.
And since you're laying out is just the beginning of the initiate it.
And we have just signed the 3000 so.
And the future there will be engaged and with more operators, but as of now they are.
We just have a rehab and one off way day to work on this but maybe in the future. We will consider having more of a company like we hunt to engage and this project.
Okay. Thank you very much.
Thank you.
Yeah.
Thank you there are no further questions at this time I would like to turn the floor back over to management for any closing comments.
Yeah.
Okay.
Thanks, Joe and.
Regarding the other pretty well.
Thank you all kind of crazy pita pit them.
The point in time.
And.
And women and all of them and Jon Kirchner will equal and Tor Kendall and Clinton and.
And by the fact that being California sit on it.
Triangle of the T Force.
And so they can do.
True.
Alright, well, thank you and what she does.
And bodies.
The changing.
Jim This is Ben.
Total debt free operating shock for me.
Hey, wait a day.
And Andy.
I appreciate the way it jumped out of our people well memorialize.
I.
Appreciate the chanting that team.
Sure.
And have them and if we.
And particularly since you have got.
And it turns out.
Yeah.
Thank you again for attending today's call on behalf of the board of directors and the management team of Kandi Technologies group I would like to reaffirm our commitment we will continue to work hard to pursue the EV market more aggressively in China as well as the X X.
Got it and applications of our expertise and battery swap systems to maximize shareholders value, we supported policies from the government and the sufficient cash and the working capital. We believe the years ahead and hold the mouse multitude of opportunities that can deliver.
The strong operating and financial results in the coming quarters.
This concludes our call today. Thanks again for attending you may now disconnect.
Yeah.
Yeah.
Hum.