Q1 2022 Kandi Technologies Group Inc Earnings Call

Greetings and welcome to Kandi technologies first quarter 2022 financial results call.

At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.

Please note. This conference is being recorded I will now turn the conference over to <unk> Luo director of Investor Relations. Thank you you may begin.

Thank you operator.

Hello, everyone. Thank you all for joining us on today's conference call to discuss Kenny's resolved quite out of 'twenty 'twenty. Two earlier today, we issued a press release covering our results you can find the press release on the Companys website as well as from the most.

<unk> services.

On the call with me today are Mr. Hu, Xiaomi Chief Executive Officer.

Mr. Alan Leong, Chief Financial Officer, Mr. Hu.

Who will deliver prepared remarks in Chinese, which I will then translate after that we will.

A question and answer 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.

It is in the company's public filings with the as you see the company does not assume any obligation to update any forward looking statement.

Sept as required under applicable law.

Please note that unless otherwise stated all figures Washington is doing the conference call are in U S dollars with that let me now turn the call I'll bet you always see all who saw me go ahead and Mr. Hu.

Yeah.

So you can't go off.

Hey, guys I mean, they're not been that Justin hauke.

Oh God.

And judging on that please.

What are you going to do.

Well my name way women.

Yes, yes.

It's Walter.

Hans Ola <unk>, chairman, whereby Rami and that's total.

These things aren't met by themselves.

Hey, Danielle.

So although you got your alcoholic how're you doing.

Oh.

Yeah.

You don't want a woman who's in the peaceful high volatility.

Thanks for that.

She says I want my condolences I shouldn't even.

Yes.

No go ahead.

Quad yet huh.

Tom King convenient tool.

She also yeah.

Well then.

Hey, John people to opine.

Yeah, and don't see inflation.

You don't woman wait at Tinder.

Well maybe Andy.

Can you see me.

Could you can go with it.

Okay.

And then don't require pool quite yet.

Alrighty.

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Well my memory wise the sequencer.

You're kind of going for attending that tend to buy one Jonathan down tend to buy alarming in that.

So Andy I don't quite pool quite yet so that Chuck you Jonathan.

Yeah. Thank you Sally.

Isn't say yoga alright, so unfortunately, a lot of time champion, Kansas tangential by Wyoming.

Well in China.

And then Don Gordon Carnival quite yet.

I see.

And Oh.

Well I mentioned that are you a fan.

Yeah Yeah.

Just in total things huh.

Yeah.

Yeah.

He's Hawkeye G.

Do you follow me.

She might she's a bottom.

Alright cool projects.

Well yeah.

Do you have how are.

Cool.

Oh yeah.

So why don't we lie well me, you'll see things that don't fit.

Georgetown football.

I mean, what you've done so well.

Uh huh.

Ken can you.

Sure Jeff.

Sure.

For me, yes, I'm seeing women don't find them once it's in Denmark sheets a shamble.

So with all the people who are.

She has done so.

You're trying to send me an E.

He called woman diesel being way more myopic on or took one dancer and don't seem to.

You talked about seeing that.

Sure.

Okay.

Hello, everyone good morning to those.

Oh I know.

In the U S.

And good evening to those Hawaii.

Hawaii Asia.

Looking at this quarter I think the highlight.

I'll I'll standing business performing well.

We generated nearly 25 million rather than here.

<unk> over year increase of 56%.

This is a great start to the year at this time last year.

To expand our business, we leveraged our technology to give a lot more products and Antonio Joaquim.

We are now seeing the fruits of that aspect in particular, you Audi luxury luxury cross over a golf course, which are in high demand.

And we see our sales revenue is kicking off.

We will continue to launch more new models of those all electric or battery powered vehicle products in the year to drive meaningful growth.

In February of 'twenty, 'twenty, two week Stablish a company.

My nine candy holding an energy technology Company limited.

Hainan Province.

Crossover electric.

Thanks Clive.

February 27.

Are you a subsea theory SC auto sport signed a deal to supply co man power sports with 5000 vehicles.

In another deal was over 20 other distributors to deliver another 5000 units on March 3rd.

The company high non candy holding is already manufacturing the vehicles and it will deliver 778 units by the end of April to our U S subsidiary and expect to ship another 2000 in May.

We're optimistic that this is just the start of what can be large business for us.

Looking ahead, we are optimistic about candy postbox or electric vehicles.

I also believe that our easy supported.

But all battery swapping technology will make a splash and again strong traction once the China, EV market, which is a healthy and stable state.

We will remain focused on innovative R&D that can't and true all the technology and create new opportunities for off road vehicles and electric vehicles with battery swap them.

Oh.

Hey, guys Xiaomi Joe Keefer.

I wouldn't say Bob Shanks.

<unk> for the win T E.

So if I.

Let's now start the Q&A session.

You all will take any English questions and translate for me and I'll CFO will translate the answer all played out. Please go ahead.

Thank you if you would like to ask a question. Please press star one on your telephone keypad.

Confirmation tone will indicate your line is in the question queue you.

You May press Star two if you would like.

Remove your question from the queue and for participants using speaker equipment.

Please.

Take care of call off of it so we can register the tones.

Our first question is from the Halloran Harold.

Barry private Investor. Please proceed.

Okay.

Hello, everyone.

On January 10th Kandi announced that Kandi interest framework agreement to produce battery swap enables electric vehicles.

The first thing.

Definitely a sign.

<unk> framework agreement with human human and Glenn Automobile limited.

Limited to jointly produce battery swap enabled pure electric vehicles.

At first glance it looks very positive as it appeared that provide candy earlier access to the required China EV license originally projected on the last call not to be expected until April .

This was the requirement that was holding back candy from building a passenger evs in China to outfit.

It's just the 300000 EV government accredited EV only ride hailing program.

But upon further reading it appears the vehicles and the JV will carry all carry the LNG not the Kandi brand.

Name.

No I I have four questions.

Firstly.

That's the deal being activated.

Yeah.

That's the first question has been activated.

Okay, Let me translate them why do you have so far.

How did you when he is just a lot of women that yes. Your holidays, you'll help I'm glad he got Guangzhou, Shenzhen, Hong Kong, London, She's cool.

Yeah sure that influences real congestion.

And part sales.

I'm glad you cool, we're now college henkels.

Then they will call you actually have to kind of launch is I'll say, how should we just stay on junior Michelle here.

Ikea guns, or Chicago comes off what all of them.

It's actually on the shelf that you all have always on the table you'll see that.

I don't know whether it's in would've known Ctrip has yamana.

I shall hand, future that I'm, hoping to hear.

Oh boy, the guys Hi, Joe.

Oh, okay.

Yep Yep.

Pedro you also announced would you like how do you guys or what's your thought cars, social and I'm sure they'll cause I saw you that you don't really know how long that's what T y.

Don the central one hat, well hopefully wont Angela.

That's what he is doing that.

Kinds of hotshot to pull it out right.

C J O G suite, San Diego hung Linda <unk>, Pat I push economy, that's been hanging trunk Wally Sheelen T. D go Nigel who Jesus you see shifts in case this is Jim.

Oh.

Hey, guys How're you doing.

Yeah, well my goodness.

So that's why it seems like crazy and bundle Shanghai Cindy.

Well, that's all the time.

So I'm going to call you.

Thanks, a lot Glenn gimbal.

First of all thank you for your questions. The first question. The first question that we got it.

<unk> of our cooperation.

Agreement is in place and then we had.

Working with Dan Oh, Italy.

Dan.

Application is already basically approved and that is in the public.

Public pronouncement space right now in the Chinese Government Agency Center.

Okay.

Did I.

Interpret the appearance that the Kenny branded China would not be used even in the candy commented ride hailing program.

Question.

And have you had one you should grab how should we need as well I feel sure Com you can find a little more bullish than you want to be sure comedy Yeah sure Tony while electrical alcohol I agree with you I don't know like a.

Super down there.

Okay.

You guys are almost shlomo I want them to know how much.

That's all I got.

And then when she furnace for sometimes a good thing that you got you all right.

Goodbye.

Bill.

I'll now women.

The Carnegie way.

Bill Thank you Angela.

Okay, let's put it this way even though we are working together with Hungarian and then Brendan also vehicles that we want to get a <unk>.

The man up.

Uh huh.

Although you know.

And it will take the major row of the Ho Hum corporations and the process.

Manufacturing.

Okay.

Now about the 300000.

300000, Ryan heating program and the quick battery exchange.

Also talked about in the Afro mentioned P or what exactly does <unk> contribute to the candies backed it Didnt quick battery exchange.

Like those you clarity.

Who will answer the key is not hey, Amit.

The cost of funding.

Hello mentioned, all the two graphs, showing dongle schooled up on lunch and dinner.

Now, let me pause and take home D. They don't draw any churn they'll close between Daniel Schumacher Jenna.

Okay.

Tell me if I missed that.

So we also are mindful at the same time, one damn thing again don't fill that.

Oh, Yeah, Yeah, Yeah Joseph Thompson.

Hum.

Linda Johnson.

Yes.

Oh, so you won't comment on.

Sure Joe.

So many of them.

So what we are working with Clearone is we make the major part in the manufacturing process, including producing all of the major part components of those battery swap.

Vehicles, and then those parts will be assembled by Hungaroring.

Deliver parts to them and then because they have the license this sell in China market that's why.

Assemble they would sell the Brent in Hungary to that plc market.

And that's the whole.

Process upheld.

Okay.

One last question what does each partner, primarily contribute and what percentage goes to angry and what and what specific products and services. The P. R seems enticing, but left a lot of questions hopefully management management can clear this up.

I don't know what it feels like when he Georgia nuts to go make those off Oh gosh alright.

I can tell you with what other people are.

So now he couldn't handle food Hall will show cause why don't you think Honda go go Oh listen only.

But how do you say Hello, Tien tsin that actually not no one P M yokel switching pool.

How long ago was that just isn't true.

They're going to inhibit that tinder more channel I mean, that's that's what sales at same time finding on food.

And then we keep to that but since IPO.

And that doesn't have NPD, that's a woman that's in good shape.

Uh huh.

Uh huh.

Uh huh.

No Matt.

Uh huh.

Hey, guys.

Oh, my goodness tons and good to that knee.

So our cooperation with Sunrun because there's no.

The definition of the shares.

So we don't really have.

The issue.

Then page of the contribution or the share of the profit.

Instead, we have taken a different pot as you may know, we have productive, but it was all the parts and components and we will move the margin some of those steps of the part 200, and I've said that they would.

Assembly and then there are the old Mark up to the plc market. They would have their own margin as well. So we have taken different roes in the whole manufacturing them themselves. So it's not really.

You know the percentage of the sellers, but then we have our own profit all the old process.

Thank you very much thank you very much.

Thank you Phil.

Yeah.

Our next question is from Arthur to carry with corporate strategies incorporated. Please proceed.

Okay well.

My primary area I was going to try to get more information on its a quick battery exchange, we talk about it a lot and I'm not sure anybody really understands where we stand on that but let me first say congratulations on an all time record first quarter.

All the negative mix in the U S and China economies, it's incredible to think that we actually did the $25 million quarter in the first quarter by the Chinese new year and all of the all the rest of that go along with it.

But why did you why is it we find out now you have some 70 million in contracts you just sign just just over the new.

Electric golf carts, and we haven't seen any press releases on that.

Uh huh.

Ask that question to Mr. Hu. Please.

Okay. So again pass Angela say Oh.

Oh gosh in kind of golf with him how he is here to help answer additional yoshi life right.

So we should be looking to an uncle turns out from a holiday.

I'd say now we're hunting all the time talking with one molecule I thought since you outlined though well yeah I just want to cancel and on me I'll focus on Google.

Okay.

Hey.

Tim how much support you're not a woman.

As soon as she women's you'll phosphate, we're not talking golf member women with diabetes, yeah cause it's a lot about your other choice is grateful we are that <unk>.

How long should that just shelf so thomas it seems that the inflow of dollar and that woman Joe.

Thanks Eddie.

So I guess in the past maybe we have.

<unk> been kind of the press release, our board and he was in development.

I wish that it just really tried to send it out for.

The mental basically operations and once we have some shipments that Louis circa late the press relates to all the investors.

Okay.

Yes.

So basically in order to make the whole thing more Pennsylvania.

Thank you.

Well I'm not sure what it that much good and the market environment, we've been having lately anyway, but it's nice to know for the longer haul.

Also we didn't see anything in our press release on share buybacks and we did we buy any shares back over the past quarter, we continue with the program.

Yeah, when you share what's the ceiling.

Yeah, well crying uncle clinical local television.

So people can feel critical Oklahoma.

Okay.

So thank you Susan.

Thank you and I think we do them until you where you go in a T body.

Lucia does that pretty cool.

Yeah.

Yes.

Chile.

Matter of fact, we have disclosed that the share buyback in the subsequent event footnote. Thank you Josh.

But at least on the SEC's website.

The chest with repurchase from April to May faith.

A total of 600000 feet 603000, she has not become a stock.

Okay. Thank you let me get onto my main area of discussion here.

Hi, Mike.

Primary question as I said has to do with Sandy.

Decade old discussion regarding its quick battery exchange in a little bit of background first.

I've been around long enough to see it from the beginning over.

Over a dozen years ago, Sandy patent and put into service.

Quick battery exchange program in general what even today there are a few Youtube videos accessible that I personally posted a decade that was showing candy battery exchange in action both robotically.

Changing terminal at around 60 seconds as well as our roadside mobile exchange in just a few minutes.

The mobile feature to this day to my knowledge has not been replicated by any subsequent competitor, which made this possible was candies patented <unk> quick battery exchange, which allowed the batteries the exchange simply by sliding under the car doors between the wheels, rather than requiring the car to be listed or battery charging and specialized state.

Stations like Neil and every all the rest doesn't seem to have to do.

This was considered so revolutionary at the time that the PRC government published a white paper in September 2012 recommended for all of China, only three charging methods as the preferred mode for Evs.

Again, which we still have today, obviously lease just the battery the third one actually named Candy in India official name of the project was called behind you. It sounds like at least in battery swap out.

Not surprising it was the only mode that could allow a battery to the exchange in minutes anywhere at any time by a mobile unit Needless to say this was an exciting time for kandi stock with announced by the government.

With this background reminder, it I've got a few questions from Mr. Hu on the subject.

Could you go ahead and share that with us.

Sure.

Okay, and how is your while your lunch and I shall we all Combi Shibuya <unk>, you can kind of washingtonian acclaim classes London.

On LNG.

Using internal comedy that Jim has already insurance or actual shaoxing, Oh gosh I'll go quiet 40, I'm sure. All my Selman I tend to think Holistically you know I, just don't think that Jim's answer one Andrew Hall, say, Oh boy Youtube shooting genre yet.

So I'm gonna timeshare.

No. She now Joel just you know one year I can't I mean have you been there for biogen's, even though it went down a shipping as you went out yet.

I don't have a function, that's you're talking about Honeywell, they're young horses.

And then draw at Husky Ah Ah I keep I think nickel now no I shouldn't say I should say the odds on phone control it corners.

Currently the price of pardon me I'm sorry.

He was Republican proposal.

What I will tell me.

I would tell myself all mature countries, you're like Oh, My God Damn sure IPO of Johnson.

T cell phones that one Linda go one Jack you I'm sorry, it's Alex you know should they go wash your face Huntsville Good news soon.

I think that sounds unusual usually juices that don't want to own for the Ani Young and Oh, Yes initial hope Apple that you signed by piece will come in <unk>.

Sangamo Marcia I am Bae Tuesday wait till late then boom and Keytruda shows yet she doesn't have your ballpark you know Chicago, that's how it usually a swing dance you can wash it Nigel we shall keep it.

San Jose Osha Hangzhou that comes into any one game Russia.

Yeah.

Wei and <unk>.

And this is weighs on crude which I guess have you been.

The one thing I'm sure.

Thanks, a lot just hung up with her life. She goes phase hunky dory installation crop.

No don't take or pays in China.

What do you what's your alarm keeps that leaves out we're saying so.

Okay. Okay.

That's about five sub questions here first of all I'll take together what happened at that time, because sandy to lose the momentum after its incredible nationwide government endorsement and as today's candy Cubie at still use the side by side sliding between the terrorists exchange model, which allows for the mobile change on the road side as well.

Mccaskill station.

On page 101500, I'm wondering if you I wish my boss here, you'll see unless you think that was economies that are about to come got so much to me that I come forward Tricia general nausea throughout both.

Yeah, well when people share it they don't comedy they'll caused the one here in front of us.

Thank you Antoine I'm washing at home for them, Yeah, Wow, that's a watchful eye on that I think creates a.

Crazy to me, but I do wish we got plenty of time.

Uh huh.

He had a go no go what bush or the heart.

She system that that which I'll come to your songs he pays somehow that plenty of moisture.

Okay.

So is any of that wouldn't yeah, sorry go ahead Ken.

Hey, Jeff with all our countries and in finding Keystone that truth is hired how does Shenzhen.

The only thing.

Jonathan I joked at.

And then Linda.

Dan.

Okay.

The answer is no.

Yeah, Yeah yeah.

Thank you Jonathan for the Shanghai.

<unk> put money into something.

Okay.

Hey, you got a massive 10.

<unk> P M.

Yes sure.

Yeah Melissa.

So Andy I know what she furniture.

No.

Hi, Matt.

Yes, Timna as you well know she's a woman physically.

So are you changing that.

Hmm.

So it doesn't mean that one oh, yeah sure.

Shankar tuned yeah juices in tender share win T.

Goodbye.

Let's see.

Justin Boyd Sherwin since you'll find Dan Melissa.

Which I find them, what sort of trend towards <unk> yeah.

Are you Brian .

Good thing is that it has to be jumped by Monday.

I'm Gonna go Tunyaz E. G. Sync you didn't claim over that time.

At this time.

Yeah.

Okay.

Yeah.

Got it and it doesn't matter what you deem it soon.

Yeah.

Since the <unk>.

Yes.

The woman that took a HIFU.

Yes.

Hum Shizuoka them what's that.

Philosophy.

Uh huh.

Women in way it can be used to win either farther out in time as well.

Sure.

Okay.

Okay to answer your questions <unk> Smart battery swap technology habits advanced nature in practicality. So you're was recognized by the relevant government.

Agency at that time.

However, prior to 2020.

Those relevant government departments.

Principal focus.

<unk> got their support and promotion after we chargeable ev's instead of the battery swap bv's.

So basically our batteries swappable electric vehicles with somehow imagine a life.

The government agencies.

Finally, the debt issue and the question and they noticed that.

The batteries Swappable vehicles is more hum bands and then more tactical so until April 2020, the four major state ministries, and the commissions that we list the announcements to support the battery swap Moe instead, so at the most.

But that is what more of the Evs has been promoted and supported by numbers of the companies in China. However, the progress it's relatively slow why because it did it does take time for years, but then two we invent develop those even more does that is that there was swap.

So they won't happen right away, but it takes time, but that we can foresee that that progress will get better and better.

A precedent.

How are you.

Pathogens that do is swap exchange equipment.

Still using the original size life technology, we'd been lift at this technology.

That's the direction.

This development and we will we never gave up and will continue to.

Developing events this technology in the upcoming future.

Well I'm really happy to hear that one of the Youtube videos, it's up there shows the mobile unit being used in downtown one of the cities where the.

The change was made.

In about two minutes, two and a half minutes with two guys in a little hand.

Kind of the list.

And you get over there and I mean, if you could break down you can run out of charge anywhere any other.

Battery change programs seem to have to tell the car in the station here. It can be done in a couple of minutes, but besides that let me expand on that I'm really happy to hear that this kit. Okay. So it can be still controls. This pattern would that mean that third party automakers use of technology would have to pay royalties to kandi to use this site slide mode.

And you've already said this is the same one.

China Battery exchange is using.

Skip that part of my question.

And by saying can the China Battery exchange subsidiary also Custom-make Cubic's stations for other battery exchange modes.

One company you should Oh.

Oh, what's that she had kind of brought them all is that how we should die she's only thing.

Yeah, Linda Tsai Tunghwa Koala huh.

Angel on geological fissure in wages, whether you bought one didn't know who you are what is your own blanchfield larger.

Mailed five 5 billion.

When Jim Jong.

Bob I can't think of a trail by Toyota Eli Lilly I don't wash, it's hard to judge has approved yet.

And now with that of the ones in other shallow Congress, you're probably gonna yeah cool.

Hi, Nigel Guar.

Young Guy He's got do some bonds congrats yourself with a y super.

He also on concrete you try NIS one shot panel shiong from Russia, now hope to hold on to and others yet.

So if you're doing one being simple.

I agree with you.

Happy I'm sure Delhomme, Washington Group High School, one being China.

Yeah.

Yeah.

You only have a cut off of that.

And that's on me.

Just fill us in a fund.

Tom.

Sure.

Kind of hard to.

She'd been in Antigua, Sweden, I'm with Shanghai School.

So that's fine.

So you'll want Barclays for life.

That's funny.

Uh huh.

Okay.

Hey, guys good morning.

Forget shambaugh.

Uh huh.

This is how you won't tell us that they find them with it.

It's a troubled debt.

It's got more synergy type haynesville toxic.

Concentrate which I'll find them, what's the price.

Dan Fannon.

Okay.

So our company does own currently the patent for order sizes like battery swap technology.

In China market than not many products of vehicles, that's all being the size light technology at the moment, rather they're more vehicles using the.

The battery exchange from other <unk>.

Like.

Chevy.

So therefore at the moment the impact or the effect of the satellite bandwidth swap pet and it's not.

Significant I would say.

And as for our subsidiary the China Battery Exchange Technology Company Limited, yes, we are developing.

The third party commercialization.

It adopt satellite battery swap mode of course, and we are trying to explore the optimal way.

That can develop for the party to commercialize on our you know Peel EV in the laboratory swap mode.

I thought it was going to finish but I won't do a follow up on that it would just seem to me again.

No other model can be done where they could change it in place I mean, you could have wrote called roadside assistant on your on your yourself phone. They can have a unit out there to swap the batteries in a few minutes even in downtown.

Hey, James.

Why is it that sense.

Logical.

Technology is not being used or even being endorsed and promoted it seemed like it would be done with any size vehicle.

Yeah.

Anyway.

Tried to address that if you could please okay and has the ones I'm sure.

The process is I should say, how thank you Joseph.

Washington, I should say huh.

Yourself.

Yep Yep.

Yeah. So one thing on I believe that they can oh she can't.

Oh, my God that count towards LNG.

That is a dull.

Hello.

So we're doing what we can create a kind of a cool. So of course, you Couldnt talk logically you buy bunch of quanta.

There's lots of G&A or telephone should not be equal at Melbourne to wash them out there and play to licensure well she's absolutely.

Okay.

Neither the winter show my uncle.

Hey, guys.

So I'm quite familiar with.

What should I, just met with them a 10 year.

No.

Oh man.

Womens, creating things edible Manhattan, how long way Gander when she said you know what you've heard Ken says, there's too many other tools and blueprint.

Finally, I want to get the Michigan market.

We've seen pretty awesome online pharmacy market.

Since then we have plenty of pushing that fleet genting, who pays for them.

That's fine.

Melissa.

Congress.

N.

Jinan.

Alumina.

Uh huh.

But as a tool.

Hum.

Jim you can guys how're.

Jean Louis.

So with the lowest painting, finishing it.

Sure.

Yes.

Civil which of the Anchorage, Alwin, who said that one Dan.

Good report.

That's one of them will say Oh, yeah.

Yes.

The tour there that's only my mother son.

You mentioned the TNT.

Oh no.

Sure Uhm, Anthony as you Wendell.

Please don't call a woman Keith what I bet, so quite a bit more systemic than women to the S&P Joshi.

What's it been somewhat random physicists can comment you were changing I'm thinking that there was a piece of a gym huh.

That's my father.

Thanks, Tim Good Chambliss, yes.

Joseph Thank you Pete.

And so I'm glad you're willing party to it.

She knows what she want that I said, you signed up already.

So you can sort of fill the fall so you talk to.

That's just don't want them in new ways.

I didn't.

So.

So.

And I think a pink leader.

Chi Wen mentioned this.

So you want me up and not hot Tien <unk> shoot us.

Thanks Holly.

Two women as Shang just said.

We wish them, well actually I should call it.

Uh huh.

Goodbye man.

Hi, Jim Hi, Sheila.

She has a job.

It's a good long Creek credit Union, which is now clear.

And how many are dual booklet that Cleveland cliffs, I know you don't want to ensure that women.

Okay.

Hi, gentlemen.

Nishu, telling you that Kevin this is a pink Cleveland.

Neither.

What are you gonna oxygen.

So as for the development, China market as you May know.

Begging, maybe a decade or more than 15 years ago.

<unk> is a new topic in China, so at that time, the wells out there with the <unk>.

Relevant government agencies, they may have not too much of spirit in this aspect.

That time indeed.

Beaten read by the idea of the battery swap mode, even though they recognize it but it's not the focus.

And it's still the development and the experience of the past decade over the past decade.

Since 2020, they finally recognize that.

Though we chargeable EV may not be the ideal or optimal way of promoting that you'd be in the market. That's why did they start to recognize and promote the battery swap mode.

At that time, the four major state owned console.

Emissions in the ministries are they all real estate.

But now it's meant to support the battery swap mode.

And.

It's been in the rechargeable Evs market you know for the last decade. It does take time for them to change it.

Besides that.

The current market is not quite healthy it yet you may see many companies to try to compete the occupant itself.

Sure.

They spend a lot of lot of money and even though they sell all the products with a negative margin.

To us that doesn't make sense in order to put that all invested we have to spend wisely. We cannot just go in and compete like there's no tomorrow. So we are waiting for the development became more healthy and more orderly.

You know it will be soon so one debt.

Healthy market becomes more albeit more viable we would then go in and compete with artist.

So it does have a plant in a market development.

Okay well.

I can't I can't argue with that I think its wise, but it just.

Just amazing to see the stock trading at $50 $60 million under cash in the bank with hardly any debt.

Well at least at the rate you are going to let's say.

A couple of hundred years or something to use up the cash you have in the bank.

If you keep that losses of only 600000 with all of it.

It's just frustrating, but a great great quarter, and we're looking forward to a great year. Thank you.

Thank you.

As a reminder, it is star one on your telephone keypad, if he would like to ask a question.

Here a confirmation tone. Please press star zero, we will pause for a brief moment.

It doesn't mean, we're not going to ask.

How are you.

Hello, gentlemen.

Uh huh.

Okay.

Operator, we have one in queue.

Please go ahead.

One moment please.

Our next question is from Fred Badger with clean Tech equities. Please go ahead.

Good morning, congratulations on a great quarter, considering everything happening in China is just fantastic.

Several years ago with the stock trading at well over double the current price.

The company contracted with an IR firm called Blue shirt group.

Aside from the fact that the stock is now trading at a five year, though loss top and bottom line has improved considerably.

And candy is trading at a huge discount to both book value and even cash <unk>.

They seem to be on the payroll.

Why is that.

Blue shirt puts out a monthly market letter of highlighted stocks candy is nowhere to be seen you would think blue shirt.

Would be able to get the attention at least one or two of the junior analysts to look at Kandi with such an undervalued profile. This is especially true with this current quarter.

What is management, how does management plan to get this message out.

<unk>.

Thank you for your question Colin you should.

Pat has shown himself his home tool.

Let's say hill Holliday the people the TV cycle question that does she counter on call. So far how you see that shrinking goes ahead and bottled Yamaha T shirts.

Obama and I'd say that what is the one who Washington, if that's okay with all your cold cuts Alcoa.

Kelly jobs, I shall say that nobody thought Oh call Tonight I have also polshek hanging a lot.

Your line is open.

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Okay. That's I'm sure what's in your 92, I thought of it that shot and local touch that Joey Yeah, Gotcha, one yet.

Yes.

Yeah.

County that you always ask Rafi, gentlemen, zadruga, Sandra Zhang for your thoughts of alcohol tobacco why Goldman Jorge here Hi, This is actually what you're calling for for pre owned that was long before that just Eurasia.

Not just for you Bullshit me, yeah, Doug with thoughtful.

Yes.

Yeah, Glenn to tell that.

Hey, John Campbell.

How much it may all Sami is that central oil shale question uncle Banjul.

<unk> Vishal I'm glad you got the phone issue.

Right right.

Thank you Joe Joe Shan <unk>.

Our economy with NGL you go lives of noble financial research.

You like them.

Alright, how old you are popular.

Hi, Jim Diabolical controller, Tony and Michael P E.

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Nuncle dorf results yet.

Okay.

Hi, Susan.

Well, thank you Dan.

We also took occupancy that you see.

So you could use.

He is the boss.

And you'll see some great cool plus okay.

Jim one more chance.

The unions on equal.

So yes.

Thank you to switching.

Andy liquid job too.

Sheena.

Thanks Chip.

The deep water.

So it came to a halt.

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Macquarie sooner or woman.

Madison is ongoing.

Hunting Ana comments Amit.

Hey, guys.

You bet.

Yes.

Hey, Joe.

You can see.

Tommy being kinda co Jacqueline.

Oh, John Zang.

We lie.

So this is humming.

That's one of them permanent.

Yes.

Okay.

Hi, Joe My view that publicly woman.

Okay.

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Yes.

I see.

19.

But to your tank car fleet.

Yeah.

Hong Kong woman that part of your time Dave.

Thank you Sir.

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Okay.

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He kind of women carlita probably easier.

Okay.

Thank you Kimberly.

Thank you Eva.

C J.

Oh, Hello municipal Kell Duffy equal.

Women with Linden Shahar.

Thank you.

Shanghai.

Quickly.

Sure Jay.

So thank you for question.

Our main target or Maine.

ROE is always trying to.

Do a good job of business operation and strengthen fundamental.

For the stock price is true is that also a trend in the market right now is not very good for the Chinese stocks.

Although we believe that the share price for the company is under valued we believe that as long as we're doing our best.

And we.

I'll continue.

Good business and the performance and the financial statements. The ship price our company will naturally rise and get back to a more reasonable price.

Regarding the I O for the Blue should we have been working with them for a few years. Indeed, it has a pretty good reputation in the U S capital markets and I think they are one.

The best out there.

They are working with some of the leading companies in the industry as well so I'd just like loosely arrival two simple.

So the expertise and connections in the market is pretty good we believe and we are overall satisfied of course with the operators cooperation in the past few years. They gave us advise that gave us all the different opinion.

However, the final decision maker as always the management of the company.

Apart from the opinion from the IR firm.

Taking into consideration of the advice from.

Opinion from the lawyers.

Orders and.

Relevant departments and operations team.

So.

As you May know, we're doing the best they were trying to.

What's the best for the company as for the investors so hopefully.

Foreseeable future our share price will get back to the reasonable.

<unk>.

Thank you.

Thank you.

Our next question is from Frank bedroom in.

Private Investor. Please proceed.

Yes, hi, there good morning can you hear me okay.

Yes.

Okay. This is Mike.

First question was already answered I have one question.

While back.

<unk> mentioned about the 'twenty three 'twenty seven.

To the U S.

Then that was hoped because of an air bag.

So my question is.

The expected time frame for these class B J 23.

27.

To be released to America with the airbag problem resolved to the satisfaction of U S regulators.

Okay.

<unk> Chandra with Allah, So Angel is high so Jason Gold Lions, Nishu Guillaume Zama parity.

Thanks Sheila.

She.

Oh man, what a bunch in Idaho.

All lines each quarter.

Quarter.

Got it.

Since I was at Lasalle to Bajaj.

Sure Ronald let me check with them yelling I'm really intuitions yet.

John Peter and uncle attention right now what.

Okay. That's helpful.

Yeah.

Yes.

More channels.

Yeah.

Hey, guys.

I mean, what EOG that just where you are too.

Andrew.

Hi caller anthem.

Does that mean for us.

I'll now pass it on.

China.

Hi.

So Paul.

Hi, Matt.

Thanks, Tom that woman.

Two children with diesel.

Jim.

I agree.

Yeah.

Yes, so at the moment our safety requirements then they.

They will not met the requirement from the Dod from USDA.

We think that the requirement standards way too high.

And not a Chinese companies having over 180.

Numbers of pest and still not pack.

The moment, we cannot tell the exact timelines that we can.

With the latest requirement however in order to.

<unk> strategy and the market approach with this.

Hi, Jess more dose of <unk> 23 in kitchen, seventh and EV the neighborhood EV models and the service is doing okay.

In a moment.

So thats the update.

Evan.

I understand about the Ltvs.

I'm really surprised that the regulation says so difficult.

Candy.

Because other companies appear to be selling into the United States.

Satisfactorily they have met the regulations.

It seems to me if you bought a shovel a car you could reverse engineer the airbag description.

<unk> mechanism.

Okay.

The comments on that.

And Im sure well once you're talking much about that Ghansham biodiesel Chalmette diesel truck.

Yeah, Neal it's you'd have to have his whole life right. You can go in either Chipotle doesn't Michelle sure when you look.

I wish them well.

Uh huh.

I'm somewhat ballman.

Hey.

How do you guys feel that one.

Hey, Sean.

<unk> some of the younger.

Oh sure sure.

Uh huh.

Shell chevron or anything that youre, having.

And then Sheila.

Mr Christian college or any of that.

Neil Maelstrom that yeah.

Yeah, Sean.

Sure.

I figured it would be helpful.

Sure.

Well Mike.

Andrew Chin.

Guaco to that Sheila answer Jamie.

Doesn't make one thought that it would cause a shot that politics is sue that caused you to pump at the IPO, but yeah. So as I. Please go ahead.

Bob Hopkins.

And then Don.

But since the economy.

Good so I'm glad that cheap.

Sure.

Dental to.

Hi, Domingos.

Well the major reason, we cannot meet the standard is not really just for kandi, but for overall.

EV makers from the PRC market as you May know.

The requirements and the standard of the FX safety is different between U S and the China Chinese China and also that European countries.

They have more requirement yourself.

Based on the size or the weight of the driver and the passengers.

At the moment, we don't believe that any one of the.

That's it for the Evs, and then that get gasoline vehicle.

Manufactured in China being sold in U S. Yes.

Okay that'll have to do it thank you.

Thank you. Thank you.

Our next question is from Francis for private Investor. Please proceed.

Thank you Hello Kayla.

Hi.

Hi, about two years ago, the company spent about $40 million or more for a on a design contract for a new EV model.

And I wondered if henk run will be assembling that model or if there were some other plans for that expenditure.

Yeah.

Casuals that.

Global Pos with Yamana.

Yeah.

Uh huh.

I was just all too controversial thing.

All right. So that's why now.

Chi Shanghai social.

Hi, Sam 2000 machines fail.

I just had a twofold I harken back to quite sure that some caution from London.

Yes.

Sorry, I'll take when they might have to quicken.

Okay.

Uh huh.

Hum.

Okay.

Hum.

Goodbye.

True true Joseph.

Okay I'll take one Asia.

I don't know.

Okay.

Hey, Dan.

Hi, Noah.

Sure.

Mr. Hu is saying that any client.

That will be sold in the China market will be solar so hungry.

Okay and will this model will be sold in the China market.

I'm proud to see how that one goes well it okay. Thank you ladies and gentlemen.

Please go ahead your line.

Sure.

Sure. So Wade gentlemen, tell me if that's.

That's all the questions and social.

Okay.

So I'm glad you Joseph.

Yes, yes, a wealthy.

Any timeframe on that.

It has some humor leaves Russia.

Please go ahead, Dan Shlomo.

I'm, Patrick Lynch with Douglas commercial home loan pool.

Sure Justin.

Yoga Wint T J Kim it was sure that.

Nick.

Tandem Wichita.

Comment does that mean.

Hudson elements.

Pinkley that sui in women.

A question on PV almoner fishing.

Teaching and so quickly Parkway Mona.

And guys who is shopping in crisis.

Okay.

So chip.

Like I mentioned earlier on the call in China right now, it's again about came off of moving money in order to achieve that.

Sales volume in the market and we are definitely not in that kind of gain that we just don't have.

And.

That kind of money.

To compete with visa peers.

However, we're not out of the game, we are still going to try personal water to style with a small volume of EV products in China. So I don't have exact.

Timeframe.

When the however, and this is our plan.

And.

You are now going to see a large value outside of the EV or EBIT models to walk them through launch.

Okay, and what is the status of that very important strategic cooperation agreement between Kandi and the chasing state grid E. V Service company. It was P yard in 'twenty 'twenty and Mr. Hu emphasized how important this.

This agreement is to the future of candy in Cubic's.

So what's the status of that now.

Please.

I guess, let me.

C U E.

In 2020.

Our strategic partnership with Georgetown.

Yeah.

Yes.

What's the status of the strategic cooperation agreement between Kandi and state grid.

That's ballpark, Okay. We don't have no one's resumed the ollie's Army National Industrial Park with.

What's out there Marc Henri.

Eagle January CE.

Touch on too long.

Uh huh.

So the bottom line.

Yep.

Neil.

Hum.

Once again going to the chimney.

Yeah, Melissa Shawn Moon shot Wonder woman.

Thanks for watching.

Is that P J.

You might go down so that politics councilwoman Shanghai.

We moved at all do you agree with that he found a hardware mangled English is that who you might you paid for the.

So that's encouraging and why is that woman Tina Xiao on.

Thank you.

A woman challenging woman plenty of Melissa conducive to include the following.

Sure.

We hope so.

Again, one can easily pudong commonweal I told the finance.

Jim.

England.

So please I wanted out of the pool.

You mean.

Tom.

But trade Shanda.

MS Hamlyn crystallize the same lead Gen sizes, how much that's why he's the one gently.

On the scope of our scope of work for this strategic agreement as chill.

To realize the paddock chance.

Sure.

It hasnt been long standing.

And a great deal of volumes, yet because like I mentioned earlier the market is.

Right now not ready for us.

However, we have has followed trial.

Project going on in <unk>, but going forward I believe when the market conditions are stable and stay grill will be the one who claimed.

<unk> key role in this.

Projects to make.

Grant investment into this to promote the battery exchange.

Because that will be the way to Gulf War Eagle.

Great.

I'm glad to hear that it's still alive at least.

Yes.

And last quick question when the S. Four is approved at some point in the future.

Does the company plan to call a special meeting for shareholders to vote on the reincorporation in BVI.

Okay, how about a woman.

As of right now.

It sounds like you've gotten a PDR Vishal Congress shuffle.

Yeah.

All right Oh, Yeah go ahead.

PV I know that sounds good.

Sure.

Yes.

Okay.

Would you are there.

Where steel right now.

I'll go through the FY <unk>.

It's not being approved yet.

Improved of course, you have to go through with that shareholder meeting.

Hum once again approved a volatile to execute.

Okay. Thank you very much.

Thank you for your question.

We have reached the end of our question and answer session I would like to turn the conference back over to Kim for.

Closing comments.

Oh.

Okay.

Thank you again for attending today's conference call. If you have any more questions. Please.

Please feel free to contact us via the E Mail IR at <unk>.

<unk> dot com or you can also contact.

IR consultant bullshit.

We look forward to updating you on our next earnings call in August .

This will conclude our call for today.

Now all disconnect.

Yeah.

Yeah.

Okay.

[music].

Yes.

[music].