Q2 2021 Kandi Technologies Group Inc Earnings Call
Before we continue please note that today's discussion will contain forward looking statements made the Andre the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995 for looking statements involve inherent risks and uncertainties as such the come.
The actual results may be materially different from the expectations expressed today.
For the information regarding these and the other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligation update any forward looking statement, except as required under applicable law.
Please note that unless otherwise stated.
All figures mentioned during the conference call I and the U S dollars.
With that let me now I'll turn the call over to our CEO, who saw me go ahead Mr. Hu.
Oh sure here kind of day anti Jonathan Johnson and equity.
Walking and Kashi.
And John Alright.
Yeah Chi.
Sure.
Just on the show.
So you should think of that.
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Yes Joseph.
The tender.
Ladies and she and I assume current Jean Paul.
That's helpful.
Hi.
So kind of woman the Shannon.
Thanks for the time.
Finally, the timing yet.
John and Siobhan talks and then switching and.
The telephone and property.
And then.
And thank you for the shocking.
Assuming that woman.
Thank you Shannon.
Cool.
Hello, everyone and welcome to all of the conference call. Today, we're excited about second quarter results first and foremost revenue was strong driven primarily by growing sales in the intelligent mobility sector, we call that the last year when COVID-19, Bolthouse, we made a strategic decision.
You'll find new market for all of the technology, we identified the intelligent mobility factor of a great opportunity, especially since we believe all the technology is better than our peers for this application.
Today, you can see the wisdom of the decision you know all of a sales number of the second quarter.
Okay.
And anyway.
Jim.
And the Brian Jenkins on day, 1 Stan Crooke.
Well you lose share.
The good thing the friendship for 1 day.
Thoughts on some.
Tomorrow, and so Youll see you soon.
And then.
Hi, how are you.
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For me until the town shoes banner.
As of the same country.
John Hewitt and share Lucci.
Okay.
So when you weight of women excuse me and you and final question Joe seem that enzyme.
So you're going to pay off.
So the question.
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I'm, assuming the GSA.
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And if I'm going to share.
Yeah.
All of the equal 1.
Of equal importance was the completion of the 2 hopper facility relocation, which entitles us to the final payments, resulting in a significant increase and net income.
This was the substantial inflow of cash, which we will deploy to grow all of business as a reminder, and why.
<unk> 2020, we entered into the repurchase agreement with sort of dancing lot development zone and the.
Second quarter and all of this year wave back and do our old crop of the and a return of the Tuesday, and quad they've a lot and then go all the schedule.
We also completed the move into all the new facility. Thanks to the efforts of all the team members. The founding will support all R&D and all of the effort to capture new growth opportunities. We believe that with a solid so out of the N of government support our business email as the local economy.
Creating new jobs for the people, we are proud to operate and the socially responsible manner.
Yeah.
So a lot of things on Kiwi.
And it sounds like and where do you see.
He and all of them and <unk>.
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Gordon and Dan Donlan of known for.
And the anti Tau and glaucoma and what's the time the enzyme Kenny please entre.
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In total when you and Bob.
Thanks.
And I appreciate the team has done well and Shamble of associates.
Alright, Thank you and B.
And <unk>.
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2 of them and food transition and you would you wait.
Sure.
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Joseph Tung tons all of you on <unk>.
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Well, thank you Bob.
And then make what.
And Tom.
Oh, well known John for that.
Hi, Timna.
Talking about growth and opportunity.
I mentioned in the off price.
The conference call that we see huge market potential and short distance of electric vehicles in China and the U T vs. In the U S market, we have been investing in R&D to further develop these 2 per product line and the made the progress in the second quarter and May we announced dollar cash.
The 32 premier fully enclosed the electric 4 wheel drive utility to rain day calls.
Early prototypes of the were produced at all factory and high non China, the fully and close the cockpit claim.
<unk> is the lifeblood of accomplished not typical for a U T V.
Quoting and built in intelligence and interactive of system.
Great and infotainment and the refreshingly straw of air conditioning.
And tend to see all of these pay 32 in the U S. By the end of this year, we will provide updates later this year.
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They know the sounds of downhole.
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Constant Shea of women.
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And Steve on hybrid.
Benefit how does the.
Against the hernia.
So John for you.
And Kelly and I think it's useful for you.
And here's the thing.
So go for it.
Here's the thing.
So of course, our maintain for the Shanghai you would the liana.
Sure.
Well my day.
Keith on the 10th.
Thank you for that.
Being media, Guangzhou, Wuhan woman and finally.
And she's in the Shanghai and we'll be opening soon.
Last but not least I would like to update you on the acquisition.
As you know well all of last call. We were looking for target suited to Kandi is long term developments and your math and of course shares the same vision and July we closed the acquisition of javelin Seaway, how quarters and you'll see even though they're not large.
1 of the leading battery cell products in the industry, you'll see ways core technology of lithium ion.
On phosphate.
And is among the industry's most advanced the level the acquisition for <unk>.
And Andy is the vertical integration strategy and it is a good channel to the extent our battery sales for pumps.
We will focus on EV and the power of battery for now while keeping the eye on other consumer applications and acquisition targets that align with all of the strategies and long term growth.
So does that cash.
And the ones yet.
Sure.
The car the you and when peak share going fine.
And finally you bought.
So does that change the team member.
Let's now start the Q&A session and the CFO and and I will answer your question off.
The later please go ahead.
Thank you.
I will now be conducting a question and answer session. If you'd like to ask a question. Please press star 1 from your telephone keypad and the car.
Information and total indicate your line is and the question queue.
You May press Star 2 of you like to remove your question from the queue for.
And for participants using speaker equipment may be necessary to pick up your handset before pressing the star keys.
1 moment, please while we poll for questions and what's kind of the star 1.
Hum.
Okay.
Thank you.
I have for the first question coming from the line of Walter Hill with Carty and company. Please proceed with your question.
In recent announcements Kandi is U S. Kandi America's released boats and electric mountain bike the trail King and of high and air condition premium K 32 U T. V. My question. The electric Mountain bikes are very hot items is the trail kings the L being developed.
Or is it available right now and if so what is the MSRP and.
And secondly, the PR stated that the Kate 32 would be on the market later this year and I believe Mr. Hu, just referred to that the specs reported and the PR such as the weight of over 5000 pounds 18 feet long, but only a range of 60 miles seem confusing the not problematic.
If it's over 5000 pounds at seemingly would be too heavy to toe.
So the short range would seem problematic to get to the wilderness and what would the MSRP beef for the K 32. Thank you.
Okay. Thank you Hussein and no ego and peanuts.
Volume and Jason and phone calls, you'll make a kind of do you think.
And once the etsy thoughtful and Don.
Sandy of T sensor, childcare, gout and courthouse and what's the.
No.
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And that simple you can kind of sounds like Lewis.
And the Tianjin and so exhausted the wausau.
But the other 1 and P&I choices for Oh.
And I'm glad you could make a case out of that.
And we see when the swap out of the case and that's what's in the India emptied the Holy sauce.
Google and other torn out and how we sample iOS and <unk>.
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With the us at the house on me yet for pool.
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Kidney non U.
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And then once you pay for my whole bunch of them.
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<unk> and <unk>.
And if I may call and then go to a box for the time.
Hey, guys. Thanks for thanks.
And then.
And then with Chancellor and tumbling, so with Joe and team way.
And that's the sand channel all right. Thank you.
Sure.
And Dan Shannon. Thank you. Thank you.
Did you go into some of the existing rock and then.
Yes, yes, yes, and go into EG swap.
And then day it seems what else, though what you're thinking.
Yeah.
And if I go.
Hey, Bob.
Oh, Oh Oh.
So first of all of the question about the electronic mountain bike and our U S subsidiary of Etsy has indeed sunbelt the research of the marketing about the mountain bikes and we noticed that the small gets really hot the elite. So currently of.
2 models 1 is for the adult market and the other 1 is for the children's market. Both models have already been developed yet and would be available in the market.
As for the first of all model for the.
Other market the production is done and excitement to the launch in the U S market and September this year as a matter of fact, its available for customers to order at the moment of already.
So as for the AD model the M S.
L. P will be 3005, 5 and $99 as for the junior version means for the children model the <unk>.
And it's albeit we will be 2099 U S dollars.
Okay.
Okay.
Okay.
Thiago and Kenai.
And thank.
And you guys thoughts post the <unk>.
Jim Bob Yes.
The thing about how is it soon.
And.
But for Oncor, the Malone for you.
The EPS <unk> <unk> and <unk>.
Tayo robot and when James and Thankfully.
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<unk> for you Todd June and go.
And so a lot of Nomura in terms of enrollment and thinking that Joe for you if I could talk about EBIT kony.
Hey, guys.
True Syndeton box.
And then my mood chairman of women.
And.
You are young and how you're doing father and they'll lose on the current graduate Tom any quota and then.
Yes, I think the dummy well and go through it.
But the young pathology.
Congrats for the kind of fun, so yeah, we shipped and soon.
The economy, how quickly do all day hybrid of Jonathan some of them down and Chuck Yes.
And good times through the Kona and shifting the U K.
And then she and I hypoxic and put us well for them.
All of you hope for.
And I was wrong.
Tommy and Calvin.
And and things of the chalk.
And tissue.
Okay. So as for the Mod Okay 32.
You mentioned did not file of lives as a matter of fact, we are still currently optimizing the T 32 and <unk>.
And I'll, let you of subsidiary has been working on the market research and collecting the feedback from the market debt. So.
And so that we can have ups and certain parameters and the functions to be adjusted but that we thought that usually from our point of view E. D. V. The marked up the range should be signed for around 100 kilometers, which is probably over 60 miles. So we believe that should be enough. Although we are still trying to.
Collect enough data so we can finalize all the parameters and the functions.
And so after all of the pyramid of setup and the foundations to be finalized.
Based on the market research and we will come up with the final MSRP of based on the adjustments.
So that should be it for your last 2 questions. Thank you.
Thank you.
Okay.
The next question is from the line of Mike Fifer with Oppenheimer. Please proceed with your question.
Hi, Thanks for taking my call.
A few questions regarding the full speed passenger evs and both China and the U S.
There have been several articles recently out in China that report of renewed interest by smaller EV companies to step into the ride hailing business.
Since Dd's proprietary writer App has been at least temporarily restricted.
And like the going to have to be significantly modified.
While kandi has nothing to do with the rideshare apps for the 300000 government accredited EV only ride hailing program.
Its partner Rubicon rubbo might be involved.
Is what happened to the DD going to be of plus or minus or non event for the program that kandi will provide cars and then all of a few other questions. Thanks.
Okay.
So let me repeat the question to Mr. Hu who's the.
No.
Hey, James domains to the towns that you see a.
And so some of your own.
And also to the to go.
And Oh, it's.
That's cool and they go to the Penguins.
So it sounds that day and don't see it took almost the same shoes like the handle the took a walk you had sort of yeah.
And you did that and its Daniel.
And you don't change the APB, so that the kids.
And so kind of shocked when and if it turned out of sugar.
Sheila and women can be a sit.
And for that and they are supposed to.
The sound what sounds the 1 type of that make us a shouldn't be and don't see the.
And yet you can keep up the call me on Jameson the yellow.
And I see on top of the 1 minute.
Right boss. She says she don't so intelligent the Eagle and teaches the swaps Steve you did take a switch in.
They can do what you had said your thoughts.
Yeah for maintenance.
She is simple Oh I'm glad.
And.
The 3 women.
That's all of course, but and I feel convinced the deal.
And I D D C E shop of the John Cobb Sandler <unk> I've got a bunch.
Gotcha.
It sounds like <unk>, and and Carlos and Tom Yes.
The survey suggests that if the deal.
For the Diego and <unk>.
Okay. So for Mr. Hu debt is definitely a positive to us Oh, our car hailing platform.
Hum.
And the wealthy and the whole market and because of our DB used to occupy over 80 or 90% of the whole market, which is rather of monopoly and the I'm trying the plc market, but now it's more open to different other platforms too involved in this business. So definitely used to a positive to us.
Okay. Thank you and then where does the overall program stand and then I have a second question. Please thank you.
Oh, no I'm totally of went out of them, which can take a lot of each other and they got some of the.
And when do you find them with you and John Clarke, and I guess you'd say.
Yeah, all of my favorite whats the hold on time and all of the ECA when he got them and the papers and Wanda.
And then I guess.
Just the Mega.
Some of the 1.
Congrats on the iPad.
Should I presume and zone 5 years tenure and 1 shifts the whole.
Chunk will credit Cai pop of Weibo thoughts on and I guess that the woman.
You couldn't do it ashish.
How's that.
So of credit up car hailing platform program is progressing and in orderly manner and.
And later this year, we plan to have the launch event about this program. So please stay tuned.
Okay, and then the Kandi America Dotcom website seems to now have under vehicles, both the K 23, and K twenty-seven and easy plus the K 23, and K 27 and full road.
Speed passenger car available for deposits is this a sign of Kandi is close to releasing the new 'twenty 'twenty 2 model passenger Evs for U S sales and is this the reason the there has not been and official Grand opening for the New 60000 square foot Dallas showroom bought by Kandi.
Okay woman, the <expletive> make what the Oh, what's the world Yes.
And Oh, let's yes.
And they've got certainly sits and how 'bout cool Kid she doesn't need the piece, which the bank debt high Okay. All the Sun IL Kim of Cheetah and they've got a change towards the diligence in house CN and CP.
Yeah.
And that's actually that's seen light share of opioid.
And then going to see.
So generally and thoughtful manner and somebody once those are the same day union debt.
And the only debt and don't see the.
Now it took of your civil government kind of dialogues the goldmine of field.
Do you want the pay phones that you guys got 19, non somebody of it tends to kind of what again.
And so they kind of woman cant do you see that the scene.
And that something isn't being done and settlements.
It's a true.
And yeah I'll answer the same time day, and I assume that you think you'll.
Yes.
And I'm, Oh, and the mayor of cheap and no one's on the turmoil.
Yes.
And that takes wishing the time being itchy and.
And that's why you got tenants.
The woman may ultimately contact with most of them.
As for our new band at Wynn Palace is already in use and due to the pandemic. We did not hold of the show Grand opening ceremony, but that is not correlated to and the launch event of our upcoming more of those.
Just with the pandemic, that's why we didn't have the ceremony and.
Earlier this year.
Okay. Thank you and then 1 last question what is the status of the Kandi design, the new sports car cost and Kandi close to $40 million and R&D This year.
<unk>.
Yeah.
Hum and Hyatt chose the wind he chose the junior and do Kandi.
During the challenging and sits at 1 of them that you're at the.
Yeah, and watch them, but I thought you would have seen the maybe out of jail so would.
And I get in touch with somebody and the key Atlanta.
And Tim Young woman and obvious agenda, Armenia, and Fob for to lunch and Joe for you guys seemed the job Paul No matter, yes ballpark.
The <unk> poll.
Paul question.
And my first as someone that total should the <unk> zone and is unclear.
Sure.
For the time.
And Andy Yes, Thanks for your P jumps of the town.
The <unk> yeah.
Hung on for people, where you came out and use the 10 times.
And therefore, it seems and I do sort of Sydney.
And neither.
And so you guys have warm until the day, you should presume though.
Well the.
And so as for the last question the 40 million of R&D expense as we spend this year is not solely about the sports kind of modal indeed apart from the Sportscar. We also invest R&D amount into deep and other models such as <unk> such as the the compact.
The U V models.
So we expect for example.
The update the upgrade of version of the kitchen of the free it should be available by end of the year. So basically R&D for different models is progressing and in total Amanda.
And thank you for your question.
Thanks.
Okay.
Next question is from the line of Carl share with ranging and consulting. Please proceed with your question.
Yes, good morning, or good evening everybody.
Regarding the hoverboard businessman kandi cut into the sick to late 2019. It was manufacturing of the complete overhaul for the USA put for Walmart and other.
Last year. It appears kandi THAAD its subsidiary of us, making parts and became a supplier to them the same.
A few questions.
Kandi is still just making parcel of is it still and the complete assembly business be.
For the pause or the just the battery to the Mojo of both.
And this guy and he's still on track for 3 million units to be delivered this year and.
DSO of projection for next year already.
Okay. Thank you for your question.
And who do not just Colombia to the acquiring human the D&O and team.
And so you can deal with that.
And we'll then go sit down on each of the Indian D. So to the team.
Moving to the home yet.
Well, Matt it's in a way of whatnot without going to draw that you'll get the coatesville called the ones and the.
We get paid for that so it's not just the trulia and concentrate and many times.
Most of it since I can enjoy your lunch.
Being somewhat easier to John and found that you think of them yourself, Oh, let's say of to go and Pete do you guys sort of and wish him well and then going to see the simple high true yeah.
And it's usually you get high seas installments of the ones that you got to Toronto.
Oh, not the Yogurts and Huawei and for your choices.
And she had the pull for it.
And so the vote sneak a b and C. What P&C, how silly it and get the about cool.
All of the choices can be <unk> and CFO.
You bought and then.
And why and tie that they've got self so the whole true outside.
And we like that element of the ECA you Sidney.
So I don't know.
How would that change any of the QM.
And then my.
The Congress.
And then some changes.
And clearly you're not true yeah, hi for named.
And then put here.
Part of its potential.
For again, Keith again.
Okay.
And Ken to you again soon.
And the onset channel.
The ballpark.
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And 1 guy that guarantee.
The man.
Uh huh.
And you mentioned that it's a day and.
And when do you want to and standby 1 high there and would you.
Are you taking share.
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The other current Amit well go for something like 1 of motto of your Coke and coal would you see 2 of them.
And for you and you didn't have the inkjet and tons of women Hi Tech.
No.
Soundbite 1 per se.
I mean, the names I took a piece of it sounds like you can do.
Yeah.
Yeah.
Of the Olivia.
Okay. So we got in our company's Hooper blood clot piece of the we still primarily making the parts instead of the <unk>.
Assembly business and.
For the board.
Both the battery and the motors.
So finally, you know about our sales target as you may know of last year, our company has slowed.
500000 pieces of the motors and this year our free.
Hundreds of feet, New Orleans units most of the target.
We are underway to of chip and we are trying very hard to do so considering the.
There are some constraint about the global shipping issues that may be slow down and ourselves a little bit. However, we are trying to look for it best to meet the free New Orleans unit motor sales target and based on this fundamental we expect that sales would be more for next year.
And thank you for your question. Thank you could add another question to that please.
Sure of places.
So for the third quarter do you have any projections of how many of you need to build the deeper for those who've aboard.
Oh, no we don't close here and how it goes the way into each of its happened and women defense you do uncles and see I mean, we'd see a woman.
So, let's do the against the boats out of pilot and he got didn't.
And that the N C, a gate and Ethiopia, and recycled and suit.
Queenstown.
And keep those hospital 1 of course.
<unk> for your thought all of it by 1 for you.
All of that.
And falloff is co and towards the third quarter, we estimate the sales for the unit of the parts.
May properly as much as the hunt of 1 million unit.
And the rest.
Yeah.
And thank you that's impressive and touched.
Touching on what Mike from open and there have already.
About the the since the <unk> seems to be having up the cause and this continuing growth.
Do you think this withheld kandi to roll out their <unk>.
Quick battery exchange model and.
And any.
The speed and so forth.
Oh, Okay, you mean, our models, but not the the host immune the odd the battery swap system right, yes, the cube.
The.
For the for the electric vehicles for the ride hailing.
Net.
Okay, and <unk>, which all towards the Nemo and he chose the.
Well the coordinate the D D same day, yeah. So do you see of since it seems like it's.
It took us a woman index.
Guangxi and they got them, you'll be extensive and mostly in the neighborhood and they got.
The federal way for example.
And then that's the top you're bound to.
The <unk>.
The Carinthia.
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Figure of Africa.
We wanted it for 1 P M.
True.
And are you reported.
Okay.
And so as for your question you definitely will help again because of because of the constraints on the D. The opens the market opportunities for different odd that cardholder and platforms like US you know, we and my focus and the change battery on top of the platform. So that will help as well don't you would take a while and it took some time for us.
Such progress of that but you will help.
Thank you so much.
Thank you.
The next question is for the line of Mark <unk> with sort of flick with future. Please proceed with your question.
Good morning, Good evening, everybody. My question has to do with Kansas grossly undervalued share price. Despite the message EV sector correction underway from early duration and entered the awesome for any company affiliation.
Our current price level is the only 1 company.
And the EV sector debt stock is trading below quarter, 1.2021 book value Kandi with the $5.33 per share and debt book value and cute around $2.42, the share of cash and short term investments. This.
And this new Kandi has no debt the net.
The closest is still trading over 2 times book value.
And average of 3 to 6 times the book like.
Likely the reason why in this current market environment.
We have not heard of any of your company or the top management buying back their shares.
And Candace case of couple of years ago, when it had negative for working capital and the $3.50 of share book value of both the company and Mr. Who individually bought open market share for the high as mid $5. Here's my question to Mr. Hu <unk>.
Mr. Hu think Kandi Stoke is a good buy at $5 and if so with either Mr. Hu of cash which can be it says buy stocks at below book value levels is the.
And the book value is not a good deal for the company.
Cash why would any shareholder who want to buy the stock here right here.
Thank you for your question.
Zone.
And I went to Eni, So you will mingle and see the choppy zone.
Equally our winder, England's out and see the attendant sheets of hung yeah, Duffy and quality of the people you know too early to tell.
And the on them.
That's the AP right.
And don't see took the lead.
It sounds like almost the Kandi Cocos.
And I'll use the doctor at the early of Union E. G through with that none of it's out of me and thoughts about maybe with the will probably.
And most of it yet not John and me and thoughts about Colombia equal Yeah, Yeah, No no question and I'll, let you and Cindy.
You bet.
Neil.
And the cycle J T a C.
And Josh you bumping.
And she and stands out a little bit of assignments.
Since I think of 3 times I think.
Nah, I'm kind of and see what Tom and that gets hung up on St. Joe.
On the Hanmi all the teams without real Hot and don't go into the well golf Quad play where you go with harmonic for yeah.
And then going into the time delay and he C and D N Cen and woman day Union City, and the speed of Fort Meade.
Vehicles.
And I'm quite well nowadays the sound in the Jos.
Well what was the only San Diego My left out of that you end up going high school kind of cool yeah.
Nah I'm deathly sick of.
And then they go out and see how long ago and T D. The dose the 1 zone.
Which at the times equal does that mean.
And it took us out of weight.
What's the time the partner, which on the Oh Man I didn't give you a chance to talk on the system.
And what he thought he could you tell me and size of the chocolate like all of my.
Local at the EBITA and the insides. The Comex you take once through the Coke out so to speak of.
No wait for.
And you don't see that don't sound Yao Chu go.
Oh, Yeah, yeah, yeah coming the T y.
Yeah.
Sure Jamie.
Kandi for Jeff.
Tim for you might look and name for the mine.
Uh huh.
Charles Schwab and.
Right.
Yes, P equal to the.
The country for a job for them and I'm afraid.
That's the whole car is of a wind to continue.
Because if you're going to go and Tina and 1 quick and just as I mentioned capex.
So that's the hope.
Yes, great of copies of the <unk>.
Okay.
So as part of the question Mr. Hu think that definitely the can be stopped because of good thought at $5 and depending on the upcoming market condition and situation. The company would definitely consider debt issuance related to the stock buyback at the appropriate time, so basically all of our whole you know.
And see that range of it based on the upcoming condition and we will that they can see the and the appropriate time.
And thank you for your question.
Thank you.
Our next question is from the line of Frank Ladderman Private Investor. Please proceed with your question.
Yes, good evening gentlemen.
As I understand it.
And the west factories pay and used to manufacture off road vehicles back.
The battery and motor assemblies for the board.
Words.
And as well as doing battery Assembly for the electric vehicles is this correct and our motors and controllers for electric vehicles. The made at the young current facility also.
And any automobiles presently being manufactured there its the Hainan facility and the.
And if so how many for months and then I'll have the second question when the Suzanne.
Hello.
Hello.
So my.
My question to confirm your day summarize all of understanding.
Understanding is that you're asking about the products being made at our high and then Jan can and she and her facilities and if that's the case what is about the monthly output and the export plan somehow are high and in our facilities is that your question.
Yes, that's basically cash.
Okay.
The next question after the first input from Mr. Hu.
Hum.
Hum comments that went out at 3 of them, which in our women's at high na and to HEICO.
Hi, Jim Hi, Doug Koman telephone and via sometimes and some end of town team now.
And I hope they found out about behind and then the 1 time that you had something now hi, guys of the washout.
[noise] and and so we also sometime in the later.
So for the agenda and chips.
And so.
Pennsylvania through the financing.
And constantly also at the same time figure because of won't guarantee Jamie possibly also the pace of our Trenton.
<unk> for EG.
And again and then she fits and then quite against the Big 10.
And then how are you on that share loss.
King.
Okay.
So that's for your questions our high net facilities and first of all mainly manufacturer at the debt.
Vehicles, such as the electric vehicles like H and if for your kitchen of the 7 and I'll, let utv's the ability of Taryn vehicles and.
And as for Jan can the Philippines, it mostly manufacturer at the motor parts.
And the product and as for Gene Hall facilities, mainly manufacture the battery packs, the atvs and the equipment for the smart battery swap systems and some of the old products that we have in the past.
Okay. Thank you and my second question.
Or is the only name nature of highway.
And the construction some of the industrial park and in Wichita, Kansas Factory is located.
The C for the high Chow about 15 kilometers away.
Has plans to ship some net for 2 other southeast Asian countries are only to China and the U S. At this time.
All of that Oh towards.
The window the choice the well meant that HEICO for January.
It seems like that's for coals are not top of the wind out woman and take a wait and watch for coats and the fault way of cool.
And I don't know net of Beachy hyattsville minutes for coach.
And they've got Sunshine, and heightened which identical and they.
So so.
And you who for your program.
All of them and sugar.
Sure.
John Yes.
We don't share and passive short order and.
And how can we what type of year.
Sure. The concludes the economy crunchy and they've got in there.
Hi, everyone. Thanks for coal.
Okay.
And to go with your percentage will talk to you soon Zika and the system the Easton and St.
Sure.
And I am true Kronos and <unk>.
And yet and you went the other <unk> P M.
No debt.
So we definitely have the plan.
Oh that was expanded to the southeast Asia market and.
And the future currently and we are working on some market research.
Because of the demand and the regulation is different from the China and U S market. So it will take us some time to from the lives our research at those regions.
And although all of itself or the export will not happen tani and relationship with the more of the port.
What of what some of the high call, but that will be handy for us to do so, but it's not really a best of definitely correlation between you know them well.
All of the export and the end of Port and Heiko.
And hopefully at the address all the questions.
Yes, how many vehicles for being manufactured right now motor vehicles and I'd say.
Hey and facility.
That's the per month and pay.
Okay, non hotel, Chicago and teaches them with share woman heightened the common stocks and they got you a true.
So with the Wausau.
And I know you guys have.
And b jump out of that.
Sure.
And I'm being too high Tech.
Hi, guys I've got a choice of the Jedi and have towards the debt is intact. So true.
And that will sort of time line.
Can you kind of on Mega.
Hi, Bob.
How's that.
Although our production capacity of is quite large and our high and then facilities. However, the different models is being on the production of initiation process. So at the moment.
Production is.
And now with the capacity yet.
So the figures are.
And it's uncertain at the moment so for upcoming sales you may refer to our financial statements to be released and the future timing. Thank you.
Thank you.
Okay.
Our next question is from the line of average.
Serious share it with private Investor. Please proceed with your question.
Yeah.
Yeah.
The next question is from Arthur Porcari with corporate strategy. Please proceed with your question Sir.
Please standby, while we get Miss here for.
The car he signed back and Mr. Couple of Carr Your line is open.
Uh huh.
Hello, Mr Hu and all the members of the company that pleasant surprise on the numbers today, so maybe not so surprising and people have just been followed what you've been saying and the rest of the year.
And I'll keep my questions somewhat brief here, because you've already kind of covered part of it and you're opening.
And about 3 weeks ago, the company announced the acquisition of the GL and Sheila E of young lithium battery producer.
But according to their own website and by the way they have a very nice website and I wish you would have put of linked to it.
<unk> already has over 300 employees into the 40, plus researchers and some 50 battery related patents.
And as you did say in your press release, I think 90 million batteries year, most important though.
Correct me, if I'm wrong, but the springs to cover the China battery manufacturers license, along with it which I don't believe the Kandi had up to this point.
Plus the company's website is loaded with awards and just a few years since it started in 2016.
Whats Amazing is how kandi was able to acquire the gem so cheap for a price of only $7.7 million cash and.
And what appears to be a contract that you have on your FCC side, a strict 3 of our earn out which they could get up to $2.5 billion kandi shares, but would require a minimum annual net profit contribution of $2.3 million each year, including this year or else. They each other they miss they lose the third of the $2.5 million.
With that said a couple of questions.
Well generally be joined and the recently formed battery subsidiary of along with Jim <unk>, and Cao and Youll kind of screw, which is the sub you intend to spin off its a separate trading entity as previously announced and I'll pass.
2 parts I guess, that's for questions here, but for the second 1 to about how much revenues jinx the expected to generate this year for the balance of this year.
That's the first part of my questions.
Okay.
So to the <unk> settlement quiet the type C F and de Dup and go.
Oh man.
And so the so called late you got the U P and see that ease of Hong yet John C U E.
Adjusted EBITDA is found in the on the interest.
And then he and citizens.
And the younger all the sandbagged them and the angle of course, yes, the don't mean to you and jewelry and yet.
And the sounds SUNS, Guangzhou and each 1 of the.
And the union sometime that yet and we send the.
And once they got yes.
And that's it.
The city itself pretty light.
And what's the thought I mean.
The yield that you got the.
And for the teach us on debt.
Take the time of yes, the Chilean salmon and meal for the throughput jumped up.
No the line necessarily true Johnson, <unk> Johnson and out.
And what the ECA.
So the whole downtime.
And Tom and by trade debt to take the killer T cell kandi.
Kandi will then come and go and you'd be guilty of it sounds the cheap actually and.
CMT that's out there and that was the 1 Shin <unk> no.
And then trading and that dealt with I sound, yet and then once and yourself down by the sensor.
And that's without 1 center on the median dor pace changed the language.
And some of the South and Z net.
Tom and glad you took it.
You want it.
And he Joseph a.
Yeah, let's see CFO for Ya man.
And see that it's going to the about behind how high of the corridor like E T J.
And Charlie Baker single most of the so element of fence Hyatt change of it sounds it at the Institute and once again now.
And yes that went out it sounds to me.
And the teach outs union to unite now and go with that at the Wassa.
Yeah.
All of that any of that he went.
So how do you go and keep.
John Julie for Cui.
The non.
And that's the kind of all the.
As of June figure kind of turnkey.
Current pizzas and quantity and could you share and going through now.
And our current discipline and encourage you to find out and you shouldn't greenfield, partially our typhoon and Shanghai.
As of June paging channel so.
The toady.
Yes, hi.
Good day.
And for them.
Sure Sanjay.
And <unk>.
And this yeah.
And.
And in Shanghai and can go up.
Yes.
Under the new D var.
What are the time and hopefully more.
And again for James.
Wondering if aqua <unk> feel free.
P J.
And then when you quote Jonathan I mean, new Linda and figure out how many of them altogether painful.
The 1 changyou current anti Tau.
And what do you it sounds like all of equal Apu.
Does the do you go and Q2 for <unk>.
And Tim and I got.
Yes.
Total took a true sense of Tao.
Ken here.
And quite off Henry hub.
The reason for that kind of the same question for many of you also don't keep up.
During the winter, peaking yeah, Shanghai, Cui, the Sony and game.
And in Pizza.
Patrick Kenya, Tanzania, and women's the chip and so that number.
So you have answered shanda kind of being.
With all of them and then at midnight.
Sure sure.
And so you can see of women are known and sat down and we were kind of the heart that Guy does the you didn't book I E. The other day, so Luke mentality of Maui, which of them okay.
Pardon me for sure.
And it's also solo and <unk>.
For you.
Yes.
And kind of indeed took up a volume on that.
Hum.
So as for your question the.
Nearly of quiet company, John and see where he will not be joined into the reasons and the pump company.
And just the judge on the Smart battery swap Technology Company limited, which.
And include our <unk>.
The subsidiary of Aimco and school.
And of course, the judge on Smart battery swap Technology Company limited.
And to at least on the China means being bought market.
Ongoing and as for the challenge and it would not be part of this plan. However, we have a strong belief in the upcoming future of chunks of U K E and above.
3 to 4 years.
Based on the expansion of the production capacities with the lift that we will manage to be listed in the main blood marker and China individually.
In the future.
And as for the revenue.
Spec to be generated in this year.
And we expect that the total revenue for this year is roughly <unk>.
Around 250 million RMB.
Okay.
Okay, which is let's say if we do a quick calculation of about 40 million U S dollars.
Yes, more or less for the mill and just all of the small which is more than the total revenues the kandi itself and so from this quarter on and we're going to finally see some serious revenue is coming in the kandi.
And the company you just were able to acquire for $7.7 million cash and.
And promising profitability, even so far as to have their own C. O put of quote in the press release, which by the way the press release on their website is even more bullish about the acquisition.
Let me move on.
Okay, how soon before jinx it will be.
The expanding its Kurt battery life for the announced current 18 and $6.50, lithium ion rechargeable sales.
2 actual road certified EV batteries and the SEC.
And part of that.
And you kind of somewhat answered this already speaking of of the battery spin off what's the latest attention for bring and public.
The actual subsidiary the first subsidiary and now it looks like you may be doing 2 subsidiaries, which is great.
It's been in the malls, but this first 1.
So I need to repeat that if it got confused and it to the may.
The question is again, how soon before GNC will be expanding its battery line for the 18th of $6.50 small charges to actually road certified EV batteries for railcars and speaking of the battery and spin off what's the latest the attention of such.
As timing for the public power a subsidiary of spin off.
Got it.
And Oh.
And.
And they've got a jockey.
Yes, so much of your path paper, which I said with the <unk> New Orleans.
You didn't need any of the need for that and they've got 1 day against it.
And I know, it's sensitive told and we found out he and Jim So the 1 that didn't go and check with the.
3 of our thoughts Joe this is yet not the only on topic of when did you went back on site.
And you will remember what they got.
The against it she wants it sounds the stucco unequal it sounds too big of E C.
Some of them.
The 200 and some of them.
And so long ago and Ti do you got.
Hydro Australian against the desktop growth G financial and you would suggest to me because I'm sure because of the.
Do you go and <unk> and.
And gender so yamana would you do for whaler confident at all either.
All of that.
As for you the first question and the pilot section you.
It would take roughly half of year to expand the battery lines from the current and.
18, 658, and lithium ion recharge for sales to the actual road and certify EBIT batteries, so roughly half of it all.
As for the second questions the purpose and intention to bring hour battery subsidiary of go public of course it will.
Expedite and promote our company's development and operation and the future.
Okay I just this 1.
Just a couple of follow ups and stuff that either of them already been set of appeared in the <unk> and the numbers that came out today.
I can easily see why this is the first time and you got to ask this question a lot about the company buying back shares for him he himself.
The few times and the past he's given the similar type of announcement. He actually has bought stock either for himself and or the company, so but I could see why earlier 1 of the questioners made the comment about how undervalued, we went and talked about having about $2.45 a share and cash and the company. According to the numbers you just put out today.
It jumped to $3.90 per share of cash and.
And the book value of jumped to $5.76 per share.
Now that's.
Pretty impressive numbers considering were grossly trading under book value of considerably.
And then the tie all of that and you.
You've got and analysts out there that estimated that we're going to do about $20 million and revenue this year, which was easily beat by over 50% what was estimating for this quarter to lose 18 cents a share.
I think that's because of the company doesn't give guidance and it's hard to get the analysts to come on board of stock until the companies willing to at least commit to some type of the number so they don't create an embarrassment of like this analyst probably has just been hit with the.
And even without the extraordinary we blew away for numbers easily.
So and.
The comment on that and he was the chief financial officer as well.
Yeah.
Hum.
It's now who has the codes that went down.
And Dr King Dealmaking impossible with the U T about.
The woman to see and which I'm going to sit there and they tell me and talk to the.
Alcohol and that's only the CMT.
And you can dilute yourself.
The bulk of a woman with debt that moved out to the basin.
And you don't know what I'm talking about the equals a thought of.
Ohio of Jewish sits it.
And the frenzy that you see.
And she says I've enjoyed that type of thing.
And you too.
Got it and they got to.
And they've got yeah and share what you all would that make them and so so that's and that will mean that sounds it sounds and saying Wow. So I'd say the guys.
So you can get time and that you'd see tolar hub of the pathogen.
And that time and get music and like women's that than you do with the Honda.
And in place yet for me equal I think the.
Yeah.
Donald and I see and that's it so that they can make with some of the unions and you got 1 mile of Sudan.
And Jay will mess with all the goodness here fancy Ctrip, our total nah flagging.
And Joe message herself day, you said you'd see of gum and mint.
Hopefully by the time of when Belden and 3 new share at the tie some of Penguin.
Yeah.
Turning now of what mentioned that because of the current column and thank you Doug.
And some of them and kind of mature.
The figure of 1 of them and you could either and so.
And my apologies for the Chicago at home finishes as essentially a woman that's the whole milk and eggs.
And at home.
And 1.
Tom for the Joseph so on and.
And <unk>.
Hi.
Uh huh.
Thanks for the time matching all of them.
Yes.
Okay.
And they all kind of on the.
Hum.
Uh huh.
All of the so as for the question well our company's most of its always trying to do our best in our own operations are publicly we have not pay too much attention of exposure to defend our market analyst.
Even though we are working with some however, populate the communication.
I mean, not suffice in the past, so we will and try.
Try to do better communication with a deep and parties and the market ongoing there'll be able play.
Okay, and just to really just shortly and you mentioned the K 23 later this year and a subsequent of the question not in the question that kind of alluded to it.
Leasing and into the U S market just for clarification purposes for those that don't understand the K 23 is just.
And the U S car and I believe it's for U S and China, but is it.
Are you talking about the K twenty-three or at least the share for China or are you talking about the K twenty-three later this year for the U S market or both.
And Oh towards Ohio, and T to assume and guns high power and keep outside of India and the chaos.
Yeah, you got to think like that.
Thanks for the time to a true kind of Miss that window. That's at the M. D. C of O K S. On Patriot jealous of the 10 day, they make what's the top highest coordinated sits out of highest as well yeah. That's the kind of built out cool.
You can guys for K, sorry about kind of further for Cousar. The Yankee Please robots.
Okay.
2 weeks, the Germans and they make losses.
And I would say allowed yet so.
And so I'm a part of the US you know for the critical etch and meant the Kate 32. He made the confusing but case 32 debt debt you'd EV. We have finished developing and we plan to promote astellas and launched a Kate 32 model and the U S market. So this.
The T V basically used for the U S market and we plan to launch by the end of the year.
Okay, well just 1 last comment earlier on this.
Quality of this conference call has been very porous and at least it has been for me a lot of times I can't even here either side of the just I was just the went blank and if that's the way it is across the board of apparently you all can hear it.
You should go back to do and your own transcripts again, because I can't even imagine what the transcript is going to look like thinking of I'll say, it's left alone to just be the only provider of this so for the few extra minutes involved and taken the automated transcripts I think you really should go back to the company version of the transcript as well.
And.
And with that I will just say it was of great quarter.
And it looks like the rest of the year is going to look pretty strong as well hopefully the analysts will realize it and because of the major upgrade of deserves and.
And a great job. Thank you.
<unk>.
Thank you for that.
So which on top of the joke, Okay, all right and so soon.
But I think it holds true.
The top of weight that.
And that you got a <expletive> equal in the city.
The bad debt and the top of without them and then they get all of them yet.
A copy of the truth out about all of the element of it that's all of the patents.
And <unk> popular lots of.
I mean does the child as well to get all of that can be sent me quite a while and yet our lives.
The neighborhood and they've got AI and people like.
And the beltway for Neil.
And each would I say are done for the needle you by the way.
At the height of trip.
And Italian so the time and 1 woman.
The Sun.
Hmm and going to me, but I've been part of which would I not.
Now her out of a few times.
Some of the fits and cloud are not yeah that and he said, sometimes kind of things you see light vehicles to the so when you strip out all of them.
What did you say 70 and the autonomy of the.
And what's it going to sit back and do that you've got you're able to go yeah.
For example, Alex Chi for managing who read through is the of Hanmi and winter.
Kuwait Qatar.
Got it judiciously.
Most of what we'd like to thank you again for your kind of any questions and that's for the transcript we will of considered debt ongoing and how to adjust to a better version to be circulate the online.
And thanks again for your question and then come in and your support.
Thank you.
We've reached the end of our question and answer session and I will hand, the floor back to management for closing remarks.
Thanks for the guidance, Yes, Hi, John and John King.
Well many of a changing John.
And the ownership of time.
King.
Yes.
And <unk>.
The 1 that program moving.
Day, 1 man.
So the dam.
Hi, Josh Infringer.
And to what T J D.
Yeah.
Thank you again for attending today's conference call, where our content and that we are going closer to the multiple and talked of spreading all of the EV product battery swap business and the market expansion and look for what you're sharing with you more positive news in our next call.
This concludes our call today, thank you very much.
Thank you you may disconnect your lines at this time and thank you for your participation.
Yeah.
Yeah.