Q3 2021 Kandi Technologies Group Inc Earnings Call

Good morning, and welcome to the Kandi technologies third quarter 2021 financial was altered at all.

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Please note. This event is being recorded I would now like to turn the conference over to Kim. Please go ahead.

Thank you operator.

Hello, everyone. Thank you all for joining us on today's conference call to discuss comments do is I'll put it that quota of E F. 2021.

Yesterday, we issued a press release covering the results with her final press release 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 the Mist Allo Lee.

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 provision of the U S. Private Securities Litigation Reform Act of 1995.

We're 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 the other way and also Argentina is included in the company's public filings with the FCC.

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 mentioned during the conference call are in U S dollars.

With that let me now turn the call over to our CEO, who sell me go.

Go ahead Mr Hu.

Cool.

Hi, Jeff.

Finding by Jonathan Johnson.

Please.

Oh Gosh you Joffrey.

John.

Uh huh.

Thank you for that.

Yes.

Okay.

Please go ahead.

Yes.

Sure Ken don't care.

Yes.

Sure.

Okay.

Tennessee.

Are you able to total something into your thoughts on China.

On that basis.

Excuse me.

Yeah.

Thank you Suzanne.

Yeah.

So challenging.

Challenging yes.

Hi, Matt.

Yeah.

Okay.

Okay.

So it is true that tonnage.

Thanks.

Soon gone Crazy.

Well Amanda.

Christian.

Correct.

I can't say that.

Uh huh.

But to your point.

Well my departure.

I'm on for you.

Great.

So a woman who NOLA.

Like HIFU caisson.

Well maintained.

Indiana.

And so well.

Can you talk to me.

Yeah.

Cool Thank you Hugh.

Yeah.

Hello, everyone and welcome to our conference call today.

I'm happy to share our business and financial results for the third quarter.

The most important highlights of the quarter was the impressive growth of revenue in the electric scooter and lots of self balancing school day and associated parts of line of business.

There's talk about accounted for nearly 40% of total quarterly sales growing approximately 600% over the same period last year.

These strong results reflect the strategic initiatives, we undertook a year ago when COVID-19 was depressing the EV market.

Look there for opportunities with big addressable market in which we could lovely to our core capabilities.

Our school business was a great fit and a week erupted.

Substantially resources to quickly pursue it.

Our results today testify to the wisdom of this approach.

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Ballpark Kendall Jenner.

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Thanks Lisa.

What are you, saying you don't sometime.

It seems that it may go up.

Yes sure Sam.

Jamie.

Charles or total.

So you know feeling.

Is this the woman that send it to you.

And we see.

Joe Hello woman Chengdu.

Great.

No.

Yes, Joe Viola.

And the father.

Anyway, there's no time on tariff I didn't know if you can sort of thing we change all of them.

James I'll, let just being.

Pink leases.

Hey, Judy.

So a common definition PRT.

And we plan to.

I'm going to teach here.

Jonathan combing through that.

Yes.

Jonathan one visa chip cooling.

Jonathan one be the tier ones yeah.

Humphrey.

Lee.

Shang Guang Yang with Jefferies.

Sure Joe good job.

Cool.

Leading consultants okay.

The uncomfortable asking right now.

I wanted to study the micro mobility market, including E scooters and electric self balancing school day, we'll reach annual sales of $200 billion to $300 billion in the United States alone.

The settlement was always in our strategic plan, but the Covid crisis accelerated both our entry and the growth of the industry.

You can see with Ya Com has point and encourage social distancing.

Mobility vehicles, such as E scooters, and electric self balancing school days.

Nashville, and less risky alternative to the public transportation, such as local buses and subways are.

Public transportation shutdowns, there wasn't a COVID-19 demand became urban core micro mobility vehicles and associated costs.

Hey, Jeff We can't you don't Suzanne Joe I'm going to tell you.

Okay.

Yes.

Yes.

It doesn't want to be linear.

Uh huh.

And I couldn't quite sleep.

Thanks, you too.

Sounds good.

B P M.

Is that being too.

Joe could you file and shoes.

But when my father in Denver.

At the end of period and for the San Juan Suzanne found yet.

Yeah.

You did all that.

Yes, yes.

Okay.

Moreover, the flexibility and simplicity, all micro mobility vehicles.

Got this mode of transportation and Kelly bonds faster than others in the third quarter when Delta variance regional outbreak occurring around the world. We saw the strategic advantage of pursuing this opportunity and E scooters and electric self balancing scooter.

Associate their part.

So it's very convenient.

I mean, it just seems that Jonathan.

Jonathan I'll mention again don't see it for you.

She did.

Good a woman.

Yes.

This is Shang guang.

But surely in Kevlar, Okay, Dan I'm fairly important yeah yeah.

23.

So you're going to lose.

So do you see that there won't be yes, hi, John.

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The press release.

So what was that.

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Boardwalk <unk>.

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So you're going to see Joe, but doing the same thing.

Or months I assume that Tivo downhaul freeze onto T J.

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This is Tom it caused the costing then Cindy I don't <unk> that.

Well many I'm Paula.

And then Kim from Beech and again Don.

So chi that Toyota tool <unk>.

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Well me James suddenly yet.

Steve I'll make one thanks.

Tommy.

Based on the changes are.

I'm back.

Yeah.

Pizza a woman she.

She chunky.

Fishing <unk>.

Any questions.

Looking at other lines of business.

Pastel equally which impacted overall sales of electric vehicle parts.

We're constrained by supply chain patient affecting the whole industry and by the restructuring of our pure easy business.

Off road vehicle sales declined versus last year, but were up 25% sequentially.

Tommy for more than 40% of total revenue.

Consumer demand for off road vehicles, including ATV UTV and other models is increasing.

And the last quarter that our analysis of market interest in high performance logic score will drive new television, let us to give a lot of motto K 32.

Hey, 32 is our intelligence.

Fully enclosed pure electric four wheel drive multi purpose UTD.

Prototypes of the T 32 will deliver to the U S. What display last month and initial feedback from dealers well was positive we plan to formally launch the case that it's too soon.

But anyway. Thank you two for me so with all that so.

Okay, TD that goods are going through that.

Okay.

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Joe Bob.

So Conversely, usually.

It was deemed it would only saying that's what she.

This is a.

So Jamie we don't.

C P wave woman.

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So your womens.

Thank you Don.

She's only is just the time to you.

Jonathan you and pass the tool.

Yes.

<unk> Shanghai.

First of all she off again.

For me it was changing so you guys sound when you were talking about.

Yes.

G Shanghai Shanghai tons of other.

Jonathan I don't know if I might.

Sure.

Okay.

We've had that changing things.

Type vehicle.

So that three turns on CND.

We like so much changing.

Looking at our financial position.

In the third quarter, we received the final payment from Geely of ourself up 22% position in the function joint venture at the end of the quarter, we had a working capital of about 289 million the best liquidity status in all history.

This level of liquidity capital opens many new opportunities for us.

So we boosted our R&D spending in the third quarter restructuring and the recovery of all pure EV and the related business. It will take time.

But we believe that as we finish the reset of the business at all.

All electric vehicles and the easy associated product line, we again achieved solid growth.

Our recovery.

Combined with our strong growth.

E scooters.

And huge potential for off road vehicles.

Makes us excited and confident about our future.

Okay.

Yeah.

So you took a window when cannot cooperate.

England.

You can find it.

So I wouldn't be announcing anything.

Like I mentioned.

Eight.

Let's now saga Q&A session, two I will take any English questions and translate for me and our CFO Alan will answer in English.

Operator, Please go ahead.

We will now begin the question and answer session.

Ask a question you May press Star then one on your Touchtone phone.

If youre using a speakerphone please pick up your handset before pressing the keys.

Well, let's draw your question. Please press Star then two.

At this time, we will pause momentarily to assemble our roster.

The first question today comes from.

Frank Bladdernut.

Who is a private investor.

Please go ahead.

Good evening Mr. Hu.

My two questions and policy.

The port of candies business.

Number one is the factory on Hainan Island presently active in making cars and if so how many employees or actually making course there.

Question number two.

Vacay 23, 10-K, 27 were originally introduced to the United States over a year ago.

Personally can only be sold this neighborhood electric vehicles with a reduced maximum speed.

They've been upgraded and approved for highway travel in the U S. At this time.

Are they presently in production.

When do you expect them to be shipped.

At BP towards the end of the year.

Hello all.

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Sure.

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Sure.

Sure Paul Your line is now <unk>.

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Michelle with Hamlin uncle Farquhar.

And social.

Hello, guys.

And then one more chance to take a woman.

A woman that's in tandem to for time being that tolerant zone.

Ladies and gentlemen, and women.

These things and let them know what she said.

<unk> the same time.

Danielle.

So what are your television or some one time being we'll miss you seem to talk about that.

Hello, Shan Shan onetime being someday.

The Zimbabwe Congo, 10, one time being <unk> got all we hope to maintain them.

Sure Jonathan.

You go into.

Gary will go into.

Okay. Okay.

Also if I may.

Cool.

The auto.

Hi.

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No it doesn't.

Joe.

So tom to be unchanged.

Thank you <unk>.

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Sure.

Jonathan Yes.

Hey, guys.

With that I'll take a you also showed that women annually.

Sure Jeff.

So first of all thank you so much for your questions as for the first question at.

At present, the production of the EV product.

Adjusted and Fine factory as you May know in the past few years.

Electric vehicles produced by Candy with us.

Elyse production qualifications.

This year, we completely withdrew from the cooperation with Geely and we tried to you are looking for partnerships in our production. Currently we are filing the product announcements to the state governments, but those EBIT products and we can only go into the mass production of their development product announcements.

And qualifications in place.

As for the second question regarding.

<unk> and K Tron to seven.

At that moment.

Regular models have not yet.

The D O T requirements.

<unk> standard we are still working on the improvement.

However, currently we cannot really provide a very accurate estimate of when the requirements could be met as you may know.

Such requirements for the safety standards in the U S H much higher.

For light <unk> safety in August and that's much higher than both in China and European countries.

Currently there is no any Chinese company.

EV meeting such safety standard in U S.

Working very hard to achieve this goal.

And thank you.

Thank you.

Our next question comes from Ross <unk> with <unk>.

Greg consulting please go ahead.

Good day Mr Hu.

Everybody on the call.

I was wondering since it has been.

I brought up before.

Are you still contemplating a share buyback.

Since I understand that.

<unk> resolution to authorize.

Share price would be.

Using such a buyback.

Hello, and thank you for your question <unk> sure.

James Gordon Genesco over high quality API sure Hotshot, Michael Chou.

Cabozantinib with <unk>.

Yeah.

Women quick in Q1.

Congrats.

This is Tim.

Thanks Thomas.

Cody.

Thank you for your question, Yes, we are considering such process that based on the market development and condition, we will execute that share buybacks at the appropriate moment and condition.

Sure.

Hello.

Adding onto Frank Zappa months, Chris.

By what time do you expect to have a <unk>.

<unk> license for Evs.

Thank you Shannon the closing I'll go to Lindsay walnuts Walnut.

Well, Michael Kasha Moshe Hall.

And Jason.

An interesting transition.

Yes.

Okay.

Okay. Thanks, guys.

Thanks, guys.

Thanks fin.

Okay Thats helpful. Bob.

Hello, Joe Mitchell from Scotia, Ghansham hazard position correct.

Thank you Frank and Jonathan.

Hum.

Okay. Thanks.

Yes.

Okay.

So as for your question, we expect that until March or April of next year 2022.

We will kick off the mass production and sales of our <unk> EV models.

For the domestic market.

Thank you.

Yeah.

Yeah.

Our next question comes from George Carryout, because as a private investor. Please go ahead.

Alright, thanks for taking my questions.

Hi.

You can correct me, if I'm wrong, I see the focus and candy its shifting towards the sports.

Equipment as an EV.

Nevertheless, as the heavy.

Competition coming from China.

Outside China for the EV.

Victor.

My question as well.

Appropriate.

Focus always can.

Can be taken in advance.

To eliminate this competition or to be one of their competitors was was the heavy competition coming in the market for the EV.

Or is your focus is go towards.

The sports models.

<unk>.

Okay, I'm, sorry can you repeat the first part.

Yeah is your focus as the.

Sports.

<unk> for the EV.

Since I see most of the revenue coming from the EV.

Goldman.

<unk> sports equipment more than 40%.

Or your focus is as the car and lock.

Appropriate steps you've taken to eliminate that.

Is there competition or the heavy competition coming in the market.

Hello, <unk> your line is controlled by the <unk>.

Thank you.

Our chonburi helmet icon format as well.

Sure.

E Scooter.

Can you help all bunch of you gentlemen.

As you all know well make sure that you have.

With that Jay Jay can you help all that Shaw Xiaomi.

Yes.

Mr Dugan, Vishal menthol Mcdonald with announcements.

Sure Tom.

You may that syndrome.

Second when do you want to.

Sure.

Okay.

Peter.

Mike.

Paragon is a woman that you could pull its home country.

Country, It's all women.

Okay Daniel.

And our monthly shipments this time youre going to.

Okay.

Sure.

This is Tom email content, how women Ts was the changing that.

Dan.

Hi, Juan.

Has any of that one times that you are indeed P&I advances.

Meanwhile, this is Paul.

Uh huh.

Sure.

<unk>.

Finance transition Scott how much insight not just as the tide change towards.

Tom.

Yes.

With that.

Hey, Matt.

Ma'am please sean.

Panic, a pendulum pompei around the yard Chihuahua to Wisconsin.

So a woman she is not true.

Okay changing too.

Hey.

Yeah.

Sure.

Hi, This is Jeff.

Huh.

Sure thing.

Donna.

Two women died suddenly.

And then Sanjay and thanks for that.

Yes.

Yeah, Great Jonathan.

Since year end.

The thing with <unk>.

T J.

Thank you for your question, it's a really great one on board.

So first of all I'm asking.

As for the scooters.

Is adding supplemental business. However, our focus is always on the EV and <unk>.

It related products in.

And the EBIT market.

Trying to divide into two streams, one is in such a competitive market.

We tried to focus theme dock high loading platform, especially for the domestic market with our events battery swap technology.

Definitely.

Is that B facility thing that the market and meeting the demands from the Aladdin platform.

So we expect there will be a mass productions from our such.

Models that facilitate the cop.

<unk> platform with the battery swap in next April or May I mean March or April 2022.

I'll pause from our focus on the covenant platform.

We also tried to enter the market for the electronic UTV ATB as you May know currently primarily of those models for the youth TV in Adv using gasoline.

Because of the upcoming requirements and stand up for the emission limit.

Most of the models shift to electronic mode with.

With our technology as we tried to enter this market and tried to be one of the pioneer and events market supplier.

A couple of years.

So thats our planning to go and thank you again for your question.

Hey, Jonathan if you'd like to ask a question. It is star then one star then one to ask a question.

There being no questions at this time this will conclude our question and answer session.

I would like to turn the conference back over to salmon, who for any closing remarks.

Okay.

Hi, Matt.

Great. Thanks, guys Congrats again.

Thanks.

Yes.

Well I mean, it sounds like Jonathan.

Yes, Thanks, you for the time being.

Yes.

Okay.

Pardon me.

Hum.

The program will be Amit <unk> women.

Yes.

Hey, guys.

Thank you.

Yeah.

Thank you all again for attending today's conference call. We're confident that we are.

Going closer to the multiple targets.

Over 80 products that we swap business E scooter and market expansion and look forward to sharing with you more positive news in our next call.

The conference has now concluded.

Thank you for attending today's presentation you may now disconnect.

The conference has now concluded.

You for attending today's presentation.

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