Q2 2022 Kandi Technologies Group Inc Earnings Call
That that soci.
Greetings and welcome to Candy Technology's second quarter 2022 Financial Results Call.
At this time, all participants are in a listen-only mode. A question-announcement session will follow the formal presentation.
If anyone should require operator assistance during the conference, please press star and then zero on the telephone keypad. As a reminder, this conference is being recorded.
I would not like to turn the conference over to the IR manager, Kiwa Luwo, please go ahead.
Thank you. Hello, everyone. Thank you for joining us today.
To discuss Kennedy's results for the second quarter of 2022, earlier today we issued our press release covering the results. You can find the press release on a company's website as well as from Youth Wires Services. Our call with me today are Mr. Houshia Mi, Chief Executive Officer and Mr. Allen Lin, Chief Financial Officer. Mr. Houshia Mi will deliver prepared remarks in Chinese, which I will then translate. And after that, we will have a Q&A session.
Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. private securities litigation reform act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today.
For the information we brought in these and other risks and alternatives is included in the company's public filing with the SEC. The company does not assume any obligation to update any forward local statement except as required under applicable law. Please note that unless otherwise stated or figures mentioned during the call today are in US dollars. With that let me now turn the call over to our CEO who saw me go ahead and listen to who.
asph a gah raja hbanin ajah andja in bal ha Hu yee.
Thank you for having me.
While So eing the fample Co don't TAL the injia Chang you one ING the to other. Now, woman a hundred has a common oledge: legps and work the gy TR your two your, you son has a time she counso don't go social chance or whe the commun in. So too J one that spe she playing So.
Thanks for watching.
More a year. conitions, pungoan and carous hydpergen Delia, purport Co.
Thank you, Kewa, hello everyone and welcome to Ken's earnings conference call today. I'm proud of Alston referred by our team to deliver solid results despite many challenges in economic environment caused by weeps with COVID and U-Quin Russia conflict.
Early in the second quarter, there was a present dentist supply chain disruption in China due to prolonged lockdowns in major cities, especially Shanghai. Despite these headwinds, our team rose to the occasion. We have continuously refined our business strategy and we saw the positive impact of this effort in the second quarter.
So pase onion during the wayiwill find Gina. Should there some bit tangoa tdo ity.
So we also equal woman Ling what a sign of water woman type but on the changing the essentialeping like include
Thank you for watching.
ann dose and activate sensed in two paris
Today, 3,000 years, we shot a vintageges
Kei Yamenei a?
Tom.
Thank you for your attention.
Thank you for watching.
These cars can be purchased free from the chain mark. Today we are still
What the true P? esia gior woman hydi Kia.
This is a plastic plate.
Thank you for your attention.
This relative success in a harsh environment was enabled by our flexible business model. We are constantly innovating to find new products to address emerging areas of growth. A great example is the category of off-road vehicles. Our off-road vehicle revenue in the second quarter increased by 84% year over year. In the first half of 2022, we introduced the all-electric golf crossovers.
monthly production jumped to 200 units from just double digits in March.
Customers are thrilled with our new products and demand is high. With the trend of electrification of vehicles, we intend to develop a variety of new all-electric off-road vehicles such as ETV, ATV and so on. We will launch those new products.
As the year goes on.
Thank you for your attention.
because in non-
The ireling o bana Dada OSA Ho meanda hosa, OE meanda suzan wemo.
and it would still be better to install more new innovative direction of our efforts.
But food can continue its littiness as well!
All four vehicles will present a substantial market opportunity around the world.
Industry resources to estimate that this plot of category will grow by 19% a year for the next few years reaching a market size of 2.2 billion in 2020-A.
We will work hard to capture a share of this growth by seeing introducing more new vehicles and building our marketing and distribution ability. And building our marketing and distribution ability.
the vehicle comes back, to our movement
tun at an cousin, ginky woman, jly that changind, don't pleag on LO.
next time
limid DI onlege, India. Don't see, this is half nearly woman, the one they are mosted.
The positive sentiment surrounding China is made up of both Chinese and?? comprising, It is used.
High mayoin rooutchian, c't you 3, father and jettah. So what's the chance that helppe you got to are pin kque So RY woman, Jo pin ke. So may old than nine ety years perine to that.
Please check the links in the description for more information.
Then do ton GU on adian of shuttontown.
At the end of the road, health Hodall found a solution
upd?
I hope that all the players have a great B- Flower
We are still trying to keep on trying. Constance Wu Bu. Thank you.
for the benefit of a advertisement with the
Going forward by strategically adjusting our business, we believe our new term efforts and all electric off-road vehicles can make it a walker leader. The tractor can make it a walker leader. The tractor can make it a walker leader.
In addition, regarding all battery exchange equipment and battery exchange service, we have called an edge battery swapping technology in the EV market in China. However, we search in the waves of COVID and the lack of healthy growth in the China EV market are impacting the battery swap effort.
What I mean here by the lack of health growth in the China EV market is referring to many Chinese EV manufacturers are competing in loss in order to capture the market share.
We will monitor multi-dynamics and improve operation moderately. We will accelerate the battery swap business if one's China's domestic electro-vehicle market is healthy and stable. Meanwhile, we will continuously refine our business strategy to make candy more diversified and competitive.
Thank you for your attention.
??,
Thank you.
Let's now start the QA session. You always take any English questions and translate for me. Please go ahead.
Thank you. Ladies and gentlemen, at this time we will be conducting a question and answer session.
If you would like to ask a question please press star and then 100 telephone keep head.
A confirmation tone will indicate your line is in the question queue. You may press star and 2 if you would like to remove your question from the queue.
For participants using speedfare equipment, it may be necessary to pick up your handset before perceiving the stock keys.
Our first question is from Harold DeBurry, who's a private investor. Please go ahead.
Hello, I have two questions.
I'm sorry having to do with candies temporarily cable highway speed EV cars both in China and in US
Question 1, back in April , a China auto web portal reported that the candy K-23 has been re-launched in China as the Hengi HR-2 7000 BEV-01 can Mr. Hu explain the rationale and significance of this on candy to include what it means financially to candy, both now and in the future. It does see that candy is the assembly of the car.
OK, thank you for your question Nana and my chunze, why do you have so far.?lu the The Halloween Cute.
Tiling in who you should, not your P, hold the on suum. If you take on the aions that very like high will issushould MA to Bo out Cho should coun the should tail on shorther to D sho.
I guess it's a two-ton chain so both shots are sharp....
LOL
Women you Fin on the cals. We also women for the same time. Why they are also that when they don't keep a good here.
Bình yóu h?n nình.
Ta Yong W member yet to Johnson Centre, So the herdle Toyo neggoda her question T she also yfor.
Quitting cow woman kenandom the py at the shot So.
So thank you for your question. To address that Hanhe is a trademark and basically a brand we use for all the EVs we incorporate with Hanren. Our cooperation with Hanren is mainly that we are responsible for the production of the electric vehicles that enable the bad through-its-wide mode. We produce the motors, the parts and then Hanren.
will adopt our parts and assemble to be a whole vehicle. So basically the cooperation is mainly to achieve the compliance in terms of the production and sales in the PLC market. In terms of the impact of financials, it will definitely increase our sales of the EV parts.
Thank you. Question 2. Facebook Marketplace has a small used 2 door white UTV EV with the candy name on the grill that looks exactly like the Hengi HRS1 China. It's being sold by the Della Space iDrive 1 dealership. There's not a lot about this car on the net.
I noticed that the Chinese version is a full speed 102 mile per hour car as compared to the US 35 mile non-limited car. What is Chinese relationship to the small EV?
Huh? So Facebook. That shoe. ZooKhan Pile Game Marketplace Sara Kennedy g remains trace actual, um, beyond that, but also you TV. brightest gear. Thank you.
Gun T doll H R's one any more Yonder I did had to way you can ask whether you get I drive e our on shop mar, when you so sure the keep ING door's a way to that. To do what back MA sure turnance. So to sure MA share Craig the Sol sh crake how val going I make go sua to sure Maj cental in ia.
Let me ask you what is the relationship between Kang Di and this small electric car?
Yeah!
This is the exchange of the limited outward object used to do a low-end away.
the cross connecting
amendment of the church in cells who handle Yutee Honita you'll pick only
short function.
So basically we are using the same layout on the frame from the corporation of Hung Run. And why we can order. out bass. I ain't done chords. Now you can adjustlection. Sure that I said to you we can go through the Okay.
And why we cannot over the full speed EV in US, it's basically because we have not yet met the AIPAC technical requirements by DOT, especially for the safety issues. Hence, we can only over, you know, those are the UTV or NEV version in the US market at the moment.
Thank you. Last question.
The iDrive 1 dealership in Dallas also seems to be a primary seller with a big inventory of both the K32 and EV trucks and the $3,500 trailkink sledge bike.
How are they selling overall and will the K32 ever be considered for sale in China as a full highway truck?
Or. one you go Sha and to got balance. So the I drive ej that hundred sho other mind you that on the bul case cent Al one to catch ual because you J youn by made and the trial can in future to quu one not how the J Y your show in Kong U how my sho J quan case cent call their doing or.
as yours to hold Alexhail's call for opponent achieveers and designers?combo
Thank you very much.
The US company, the US, is a company that sells products to the company. As for the economic and economic issues, the situation is not that clear. This may be asked by the US company. The company is not the same as the company.
The next one is the same voice €2 Councillors in France. A is a U.T. wave. Because it is not very active. In China, there is no such a long demand. In China, there is no such a long demand.
So there are two questions here. First of all, it's about the question for the iDrive 1. That's the dealer in Dallas. And so our US entity, SCO, reports sells the products to other dealers, including iDrive 1. And as for the specific sales of those dealers, we won't be sure because they may have some other products that it's not forwarded by us.
so we don't have too much information for the whole sales per se. And as for the K32, that's the used EV that we designed specifically for the US market because it's in the scale of the fully enclosed EV type. And then in China, there's no such market demand. So at the moment, we don't have the plan to sell it to China yet. Thank you.
Thank you. Thank you very much. The next question is from Terry McLemore of the
Yes, thank you. I want to cover a little bit more on the battery swap with Hunan Hingren. There was a press release back in January that announced the initial framework to that battery swap. Can you tell me, has that deal been activated?
I would like to thank you for your time. I hope you will continue to listen to our videos. We hope you will continue to listen to our videos. Thank you for your time.
Uens sneaked into the source of this footage.
The following is a test of the new H-1S-1 and H-2S-1 in the new H-1S-1 and H-2S-2 in the new H-1S-2 and H-2S-3 in the new H-1S-3 and H-2S-3 in the new H-1S-3
So the project we're working with Hang Rong is progressing in an orderly manner. In June this year, the Hang He brand H23, the model H23, has already completed the relevant procedures at the Ministry of Industry and Information Technology of China, such as the announcement such as the environmental protection policies and then the text...
to all who have come to understand our support of Complete.
This is the case. We cooperate with the core. Because the core is very strong, so we cooperate with the core. We cooperate with the core. We cooperate with the core. We cooperate with the core.
So for the sales in the Calhoun platform in China and other channels,
The reason we are working with Hang Ren is because they have the production license and qualifications. So the brand Hang He will be the trademark and the brand that we cooperate with Hang Ren in our EVs for the China market on the road. So we will deal with the Hang He.
P Su amas was Ho womanman kang HAI ke Yong Kandi Sam El tanand cham T shk Chiang TI Yong praszamba.
In the future and in the right timing, we may use the brand candy again, but for now we will adopt the brand Han He as our sales of the product in China.
Okay, finally, what does each partner primarily contribute and what percentage goes to hungry and what specific products and services. And what specific products and services.
So I here sure now secondcle of C Co some inum mayga Co coto copper, the phonevolion mataterial show com here. How should cannot hit you your time. te T, I have four e show sure to show a hundred. I think py on about.
That G young woman, AC a young woman, same time TA go T days was a young, she just woman. Same time. She first with the Bo. Yet you would ham can and to join each to eat hardest since and share to Jo Jo Kay. Like she also also woman. That's the just a woman. So how don't she make it her from what? How to done the my a woman. She also also ch happens and day some people do out twenty.
Chou Yoyue is our partner.
So for our cooperation with Hanruen is similar as the model we used to work with GLE in the past. So basically, we are responsible to manufacture the parts of those EVs and then sell them to Hanruen, which will assemble and sell it to the customers and even to our own source of customers. So basically, we are taking different steps in the whole process.
whole flow and so there's no such a the percentage of the progress figures working on different clothes.
Hope that can answer your question.
Yeah, it does. I appreciate it. Thank you.
Thank you.
Thank you. The next question is from Michael Fairford of Oppenheimer. Peace, guys. Peace, guys.
Thank you, my question.
With Candy Stock price trading at such a massive discount to cash, working capital, and shareholder equity, and Candy sitting on a huge cash stock pile, why hasn't the company been more aggressive and completing, and even adding to last year's announced $20 million share by-back.
Thank you for your question. I don't want to show and I kind of look tellia So some ary centing mean ING being good. Don't change Jo, your roo. That for chana, as your misschion, as you were going through the changing way. If you have the way not going to may, open that T the two banch function. You don't catch your may good calic ona.
Now, the problem is that Bite and Raou Shikou are a very smallens throat.
So I changing hangsha, comes the cinit and run way where it comes the pissue of fcal, the changing like to ptampion of other, the changingishing.
Woman Ching to. Also the goodja P a don't people go time woman challenging's woman year with the time child. That's what put our weight So com year with the gy that he's a woman goodja eating ment. We ING one a way that she that don't Chang a e will call we go who pure like he T goodja I means the woman ya that adddam Su a uh changing we Chang in the gruning.
So, thanks for your concern. At the moment, because of there's all the huge influence from the first outbreak of the COVID, the resurgence of the COVID and the lockdown in PLC market, plus the military conflict between Russia and Ukraine, the whole international economic situation and the condition is very severe and uncertain.
and in such a condition, the management believes that we should hold the session task to cope with the upcoming uncertain economic situation. We want to go through this at the time and...
In the meantime, we know that the share price of the company is seriously undervalued, understated. However, we believe that with the gradual adjustments and refinement of our business strategy, and then the improvement of our company's financial performance, the share price will go back to the reasonable level.
The management believes that in the current economy situation, it does not a good move to finally rely on the buybacks to increase their stock price, because that may not be...
a perm or consistent move. But definitely we will do the repurchase the shares as planned.
One other comment, to be able to buy back shares.
at less than half book value and a 25 to 30% discount to cash seems like a no-brainer. Particularly when compared to past buybacks at prices up to mid $5 price by both the company and Mr. Who.
personally, along with at least one other director.
On the last conference call, a suggestion was made that the company consider looking into a more formal Dutch auction tender, something that would certainly bring a lot of tension.
A positive tension to candy at this perfect time to do to a strong cast position and likely revenue explosion ahead this year. The key to success with the Dutch auction.
is it will remind all that candy is trading under cash in the bank.
Thanks.
Ok, but what about You on the First I Fabric 35% Scythian Who's Great As combat80 At the Ceceme Blessings you
Please visit us in the welcome wonderful And afterwards, Mr. analog takes you to another website, is the official website has most existing content. You can also want to learn about this
To help the. Also Sha we go to tell the function not.
This is a very perfect time. This will also be in your process.
But cant be on tacht. Should have from a grand? U number your. Do you go with the put interest Sing. I think your conounptions are. Show you your way. You should be done. achie: ance you hire, So can be, should I? How hand jact in the J Y?
Figure mega. We on that smaller susee that the changes is Jo corn a where you go, COL like peason KOA to condens person hotest city. So what? Me at all, So that the C soase answer that the uh together F.
In terms of our continting enting Dot, why I put it off Omega chin fun to Co one youukp G A. how G JAC answer the? It's a good.
I'll explain the layout at the end of my Iya's web site as here in GMAN. I do everything. And that's what I can do.
Okay.
So as I explained earlier.
Now, we try to be conservative and keep our cash flow in the meantime because we believe that the buyback may not be a long-term plan that will increase, so we find our share price from a fundamental standpoint. We rather focus on our business strategy and operations. However, we would like to explore the Dutch auction, the Pandora, and see if that works and if that makes sense.
to the company and if that makes sense in the current market, we will explore and get back to you guys later if you have plans to do so.
whenway moment Omega three as man work countrycrete father, that we end, or your camate or you. So go the order cook. Your the swimming momentary woman in the wheel. Life you RE changing the, So was changing moment. Mind can industri, can proppriate to the job.
And besides, you know, Mr. Hu and some other affiliate parties, we purchased a share price of candy at around $5 per share in last year. That shows that we have confidence in our company's future. And ongoing, we will explore and determine whether it's a good time to have more with purchase of the shares. And we just look upon each other and ask each other if this is a values instantInstchlor- vest-free, or if not a stock value. And you know what, dare I say, if I order here and enjoy this video, that means we'll have a lot of people interact with you and see how you'll be doing and be786D. If you're an agency, our companyADE. Everything you know, we cover all
But that's why we have the confidence, you know, communist rupture.
Well, it's probably much better by here at these levels, since it's half the price. So, I'm going to be a little bit more careful. I'm going to be a little bit more careful. I'm going to be a little bit more careful. I'm going to be a little bit more careful. I'm going to be a little bit more careful.
Thank you for your attention.
Thank you. The next question is from author of Bokkari of corporate strategies. Please
Thank you. Good evening Mr. Who. On last quarter's conference call in 10Q, the company surprised the shareholders with the unexpected $70 million US-based golf cart agreement with units already being sold.
Though this huge two-part order in size was disclosed in the Q1 10Q, this order was never announced as a freestanding PR. Yet the new product line, if Target reached, as reported last quarter's 10Q, would likely generate revenues this year, almost equally Candy's total revenues last year.
Can you explain to us what possessed management back at the time in Q1 when everyone's business was crashing for Candy to suppress publicly announcing a new product order of this size at a time when Candy stock was also collapsing.
and has never recovered, along with the market. Also, from the comment in today's PR, it's safe to assume Candy's golf cart business is expected to grow in future years. If so, how much? Could you pass it on and ask that question to Mr. Who, please?
Okay Thank you. Now addition you the operation not going to your sho. It I that you go T T to T dollar T I may and may or D the car who ch for year year to R T G. how should Fu Al then expect te now you going to twent mail shumboo to share the FY 10, two Ho PO color T how Sing TR ia.
It was only a surprise. In case of a large political existed situation, Greyn<|fo|> says, All staff members received a call from them. We can see that the audience witnessed open threats and you
So, thank you very much for your attention.
How does the two of us agree to confront the challenge in Beijing? China and China are doing well tonight. For these weapons, yes. luck
Number second, for your poject for a, a woman to Sang in caseis not to go conining is what I saw, that you're switching.
That friend of mine has...
to turn a little new today the machine then us make a you a to die yeah I'm trying to help you eating tongue sign you up in the news tie dot so you have in the by new pie is a bar tie so you have in the each year is a duty hotel Naga do you find using for aopter you can't you buy total at the
This is in the past. C talesursed in the Russian dollar house No more Yeah, get it. Now every month but not at all. Therefore, the situation was ongoing because of the fact that the lawyers themselves didn't exactly have answers because notice there was a different approach but that in order to pay attention to the Thank you.
Thank you very much.
Right, so our mindset was to establish the fundamental of the new business because we always try to adjust our strategy so our plan was to get it materialized before we have a third of the very concrete announcements to the public. But we'll definitely take that in mind and be more prepared in the future. Thank you.
As for the questions, basically for March, we have already shipped out from China to our US entity with a fill of the dozens of the pieces of the golf cards. And from April and May this year, we started to deliver over thousands of pieces of the golf cards to US. However, because a majority of those deliveries is still in shipment at the moment, so we only recognize a few hundreds of the revenue of that.
It's sitting here with $180 million market cap, only $18 million in debt.
230 million in cash. Seems to me like you should be in a position where you can start buying back some of those shares. Where you can start buying back some of those shares.
Thanks for the question.
Go ahead and put that, send that on to them right now, Kewa. Just what I just said.
There were comments about the Magnum um, a group of someone putting on a
Hello guys, they will care more about our views. About three months later, we are on the front line."
Totally rests at night and feels like one is hanging into living suffice.
Thank you very much.
Yeah, I mean, definitely there's a web at Brightfilture in the DoveCard productions. And with that we can achieve a really good target of the cells in order to deal and smooth the standards. However, there's a lockdown in high coal, which our facilities is located, get locked down lately. And so, definitely, there will kind of have some impact and hold off of our productions.
But down the road we believe we can believe a very good performance in terms of the golf car production.
and I believe are very good performance in terms of the golf card production in the sales.
Okay, well that's how I made this spoke a moment ago. I'm not sure if I said 60 million per month. I meant 60 million for a quarter. But again, that would be the gross amount at the retail level.
So, a past couple of conferences call, there seems to be a continuous disconnect between the stock prices.
a conference call there seems to be a continuous disconnect between Kennedy's stock price and the reality.
And I don't know, it just seems like the same question each time, if we're going to do anything about trying to increase the exposure, all we've done is we've actually gained and lost a couple of analysts during that time. And for us to be sitting here, trading at a 35% discount to cash with no jet, at $200, the second compatible price.
Cash even went up this past quarter, as you said, $232 million in cash and $180 million market cap. It just seems like we get the same question every time. Well, we know we must do better in trying to find analysts for the company.
this past quarter, as you said, 232 million cash and 180 million market cap. It just seems like we get the same question every time. Well, we know we must do better in trying to find the analyst for the company. But...
set 232 million in cash and 180 million market cap. It just seems like we get the same question every time. Well, we know we must do better in trying to find analysts for the company. Have a look.
It just never seems to happen. So my feeling is that we've got to do something. I mean, you have blue shirt that's been getting paid for four or five years now. And all that's happened to the stocks gone down since then. What are they getting paid for? I mean, they supposedly have a great reputation in the world. I mean, they supposedly have a great reputation in the world.
But anyway, if you can pass that on right now, I've got a few more things to say, Kewa.
In our current track films, it will show more than!!! Game of No. 35 percent! Details of regular striking Also, my document is also good None of my members are familiar with the puzzles ???.
When the Jing to which issuyou to ent you, So T suyou MA shouldis door woman, many good may cour the cour proll landage proition qurency to H in Ana. Now how yes soci, short to eating a, say on to like B to. Or may art PE good tection door, or many yousushould actually show ations you issue that were mon go with.
and the the the the the the the
this problem has already arise. This is our overall challenge later. At the end of the year, when light comes down we naturally stop. So, overall I think before this session, we were not even confident I was just going to say ….
So the data no cheetah meat had how much you got to boot here those eat I quit watching ones and my will it tangential to sit down so it woman suggest can come and I said immediately May be back in our own ping so you want me to attend it? You're doing so choose a general separate now a woman's in the door the dollars for the general to financial I Am I sure that I mean I said I'm into that ping ping claim it. I said okay, Haji. Wow so it's a on the corner woman's here
Let' say this is trans. I sh in afterperly MO to a short amation. sh then Ho things on. A several woman fig a get a chart out. H Lou like Wards. The just his three woman Coach and ually they had threety me so much.
Jing a, not she. The woman that cous goes on down on your surface on T cogo. She want and go. ia does a T woman cous, and don't go 't go. They are no sheifs, done you? She that change them D Ata. I go the qu? ging now woman way to together to the jata role, like clo woman the find ent is so she is like what they didn't share. I just to try you changing the shes like: one a has a, So get butence data that pin point, the womanmental Jo, and so just the Med day here.
In anly maing. The Chair is what TAL say. It is a either quake, So woman, rather or may to matx comingurning into the.
All right, so we understand your frustrations and send for us. We would of course try to expand our productions and sell scale in China EV market. However, you may have heard about our update or you may have heard about the articles in China that is still in unhealthy conditions that those competitors that EV market is in
production companies, they will just, in order to occupy the market shares, they will sell with loss. Each car they sell, they may have a deficit or loss with a few tens of thousands RMB. It just doesn't make sense to us. Well for them, they may have spent over billions of US dollars to burn and to take up the market occupancy in China market. However, with the cash we have...
over a million or, you know, a sort of cash, it's definitely not enough to compete with those companies. So we can only wait until when the market becomes more healthy in a more orderly manner, then we can go in and expand ourselves on the production scale. Definitely, that's our plan, but at the moment, it will be unwise or doesn't make quite much sense to do so.
just to put in the money for no reason. So we'd rather be more conservative and wait until there's a better timing for us to expand the sales production. All right, well anyway, okay, so based on the now reported first half, and the balance of the golf cartel, order talked about in the 10Q and some comments you just made, it looks like Candy could actually have its best year ever, based on both business and financial condition, this quarter, I mean, this year.
Very unique based on current overall economic and market conditions yet in spite of this likelihood You know you still managed to keep this thing as a best kept secret you haven't answered me why Why why would we've only put one press release out the company the whole year yet in the past we put out 20 to 40 every year
The one press release was way back in January 10th and had really had nothing to do with golf carts.
So is this just going to be a new policy? Are you going to start putting out press releases again?
It's just amazing.
I passed that on and I got a few more short questions and I'm done.
Ok, the question is that, we have been until after half a year together. It is believed, to be a well known the economic environment and the market environment.
tional quani not to teach AR J anging. So you go to Mania as should do to a single like gumpo like pocar comes to the girl here with the singer or King now canne you full is J should hun with the single tia. Now how can usually at say say you not show your one you with the single So.
And, those comments I think are a very important part of your conversation.
They are descendants which were born to this day.
She's a the ger woman. We are all not ease the woman. She as a F ure her child, shea member. A child nega.
to keep things in mind as to the billions and billions of us being tied together. Regardless whether sides are tied or throw, they're not organization. So the moment we<|en|><|transcribe|> draw? we want to continue to grow and? We will continue to talk about this. We will continue to talk about this.
I hope you understand that it's still a rather a transition period for us to adjust our strategy and we find our work plan to compete in the EV market. So and of course we understand that if certain investors or shareholders they are not satisfied we cannot make them stay but hopefully we can have their confidence.
to have to share this day with us to encounter such a drastic period. Hopefully we can enjoy the fruitfulness result in the future.
Okay, just a couple of quick ones now. I'm sure Mr. Who's not happy with what he's saying. He and I go back together all the way to 2008 when his company started. In that year, he had I think 13.5 million shares of stock. At the peak, it was probably worth, I don't know, $65, $70 million. You look at the stock he has today, he has more stock. I know he's paid $5 million for the stock he's already bought. He's got more stock. At today's price, it's probably worth closer to $25 or $30 million. So he can't be happy with it.
But he hasn't done in my opinion, that's why I feel frustrated. He's done a great job keeping us alive and well and safe and yeah, he just gave people an opportunity to buy the most undervalued stock in the world. It's certainly not going to go out of business. Maybe in this market, that's a great deal. But getting off that bandwagon, I just got a couple of last questions here.
How much of an effect does the China tariff have on Candy's golf cart, electric bikes, power sports, and off-road business? And does the company anticipate a lifting of US restrictions on these?
And one last piece with it. Next to golf carts, how much are the NEV and electric bikes expected to contribute to this year's revenues?
And does management have an estimate for total sales in the off-road business this year?
Big name Time Toaku
Q. The your price is in the water. You know I am a plugsh.
High nine interesting how, whatever one D dotia don't go one to account, the car which Cult is a year. You put that again now going to super. She she shall, he H, now they are however, ne which back and who shall she can. Sure she is social beaut. vir inian number.
So some going over the conit tory here show the number can be poor sho you. What are a com here now planning through teen and may go also eachachyou the qui psho.
At then, and when the de? Go went, he go for your circuit off IC thir Fu Co song was a may qu? trer to the T? .ic fam me what ING at least it that's hand, been a more chance by CES the one C?
Thank you for watching.
So I'm a quality chocolates the country she you can see I think that three who? Look what you've been what not social jacket. You will you tell them that they go to the school for video and other you shall Just the ego and dear go into not You will so eating fan poker will come to the ancient should I call it for to the core for to searching our missile Can you sit in that not the winner? She taught searching that she also are in gagging a union top to
uhthere's a woman that you, who T are?
First of all, about the questions for the tariff, there's no such tariff from China imposed to our export, because there's only rebate, but then there's no tax tariff charge on our exporter. For the shipping to the US, the US government, they charge 10% tariff of all the import. So in...
under the existing conditions, our sales price in the US market is determined according to the existing tariff tax rate. If there is any future adjustment down the road, our sales price will also be adjusted accordingly. So basically, there is no such significant impact to the company's revenue upon the change or adjustment of the tariff tax rate. And...
And then the second question about our sales forecast. Well, because of the significant impact, you know, from the resurgence of the COVID, the lockdown, as well as the conflict between Russia and Ukraine, the whole market is uncertain. Definitely, there will be an increase of golf cart in this year, but for the sales out in the golf cart, the ATVs, we expect the sales to be similar to the level of 2021.
That's our explanation. Okay.
Well, that'd be fine. Anyway, well, we'll just see what happens next quarter, but it sure seems to me like this could be a record year for the company, and it may be a record year for a low price as well as a stock, which is a great opportunity for those who are smart enough to take advantage of it, but hey, to each its own. Thank you very much, and great job coming up with this new product line. It looks like it's going to be huge in the U.S. from what we've seen with all the dealers that have been added on recently.
Thank you structullater, Thank you having you time you that D SI ie the year have sure, and to the Sing time, Thank you. Find that that may work cont to and two sho those. I no leader teing socisho. Thank age, you should come to keep cont work. How con Sider to make a, how you, we COTE going to the grouousho.
Thank you to that D D achie the U sure and to the Sing Le time. Thank you playing that. That may work our and see our those. I no leader teaching socisho adthank age. You should come to che cont. How come FID ER to make a? How would you ATE? Go in going to the grou.
Operator, we can take next question. Thank you. The next question is from Frank Blasserman who is a private investor. Please go ahead.
Yes, thank you, but easily Mr. Hoo.
Is there any agreement written or oral or Chinese law?
that prohibits candy from exporting street legal and highway capable cars to any country including the USA. I'll pause here. I'll pause here.
I sure, so sure. Should your LO? ual- what is your quarter here, you see, to accoundu your book, ATE what I made, a youn ort' other, and then there also go something to the future.
How he's nominated by United States
and so what about NOTE for the still very long to talk about ancient German market Noteven in Germany Many of Americans??? but first Japanese?? Taiwan One thing is regardless of what HALC want. Apparently there is a support in the white court.
Your total managerial tilted to EPSU, understand this? Thank you very much.
The main reason that we have not offered our full-speed EV product in the US is because that we have not set the critical requirements of the airbags safety requirements standard by the US DOT. As a matter of fact, there is none, no one of the China-based EV products has fulfilled such a requirement has been offered in the US market.
such a written or oral documents or agreement to pull Hibiscus to do so. But we're just taking on doing the right way to make sure that first we can't support your subs, then we can over the...
The full speed EV is in the US market. We just take it by, you know, by, um, by, um, the correct order. The full speed EV is in the US market.
Okay, thank you. I do have a second question. And then the third one.
second question
Our other modifications needed besides the airbags for the K23 and K27 to be highway legal in the US. this. legal to the U.S.
Is that the only thing that is needed to make them installable here in the US?
Our would J want do too a and ch chillong. And when Y your malil cheat up on she child, should qu care sound care ch November , go to go to go an each year.
???????? It's time to cut that up.
The major obstacle is really the airbag safety requirements and the technical standards request by the DOT. Other than that, we have pretty much fulfilled the rest of the requirements.
Okay, very good. My final question, why has Candy not to be voted whatever resources are needed?
to quickly design and incorporate the needed airbag changes.
The brink hand is vehicles up to DOP standards, a highway use to take advantage of this opportunity to sell inexpensive vehicles to the United States. The brink hand is a vehicle to sell inexpensive vehicles to the United States.
due to the high gasoline prices and the climate change issues.
It seems to me that this is not brand new technology. Dina has some of the best engineers in the world.
Why haven't we devoted whatever resources we have to to getting this done? And that's my final question. Thank you. Thank you.
Well mind imag you sure, come your conbery, your door offey townm you show the Jo countryship. Now we should managis able by jation County MA hold city go con to make what the teachsure that also on Y cheating to church in Jong guynow trition that anotherating this.
out show.
chammen were you ING soar to the don't Y Mary typ and the other B o T ction and Y Cho in way father the hundredction and just the people for you. Ho part Ian don't go her old moment that was the equcould Y an Eagle and galan that beject not my one The.
So the pound, that HBA, that hop idea, have to per Y. So it's going to happen to war when you go constant negotiate the Chairman, that's made M domma openening: yes, twent Y you you, you got ja make poma, you might positive made yach Ho.
China had a total Federal Taliban military trainingientes. ??? die? Besides the Q&A, the secretary of engineering club … …daggers are nowhere to bemaswed. When he went through this, he said this to us. Thank you, man. Our line-in cars will be stolen by champions car broke in America. In the next half of the year, we will go out to the parking lot.
So, thanks for your concern and suggestions. As we mentioned in the post question,
The requirements of the ABAC safety stand, it is much higher than those in China and even EU. Because well, in China and EU, basically we have similar standards. But in US, we have two tackle different issues, such as the for different size of the passengers, the drivers, and then there is not just a matter of one single company being able to tackle. It's rather the whole industrial skillset level.
for the whole country that would work together to tackle such issue. So at the moment we are trying very hard to do so, but I guess we have to wait until the whole standard being boosted in terms of the country level in China.
So, but that would refer better to improve those timeline can determine at the moment. Meantime, we will focus on the NEV market and the sales in the US and in the second half of the year, we will launch more different models on the NEV to you.
improve our market occupancy in the US market. So I'll focus now on the FIFF, but that will work on the 50th requirement in the meantime.
I understand what you're saying. It just seems that this is all a technology at this point. It just seems that this is all a technology at this point.
and it should not be all that difficult to achieve considering the resources that are in China with the engineers and the fact that other...
Companies are manufacturing electric vehicles. I'm sorry, gasoline vehicles in China and seem to have solved the airbag issue for export to the US in their manufacturing plants. But no reason to you to comment on that. Thank you very much.
are manufacturing electric vehicles, I'm sorry, gasoline vehicles in China and seem to have solved the airbag issue, breaks port to the U.S. in their manufacturing plants, but no reason for you to comment on that. Thank you very much. Thank you for your time.
Thank you on have you sureum you know working where on with you away. josha your Han. How was I don't go hundred words. She'd had a Josh should TH fadeth in or choice. You should she trology going three may. Her may go gent on your children. The TR tellment go I wish my josha.
We can't answer this. He said you don't need to ask. Thank you for your time.
She ne you pro what you say. I may them make for my, but don't go to her.
So thanks again for your question and your concern but I guess we don't think there's anyone even the gasoline vehicle has been sold by the China companies to US market yet. So basically that applies to all the automotives from China based companies.
Thank you very much. Ladies and gentlemen, better than fortunate, we all have time to have questions. And I'd like to hand back to Kiwa Lua for some closing comments.
Thank you again for attending today's conference call. If you have any more questions, feel free to contact us via e-mail or our BlueShirt IR company. We look forward to updating you on our next earnings call in November . This concludes our call for today. You may now all disconnect. Thank you..
for attending to this conference call. If you have any more questions, feel free to contact us via email or our blue shirt, IR company. We look forward to updating you on our next earnings call in November . This concludes our call for today. You'll be now all disconnect. Thank you, bye bye. Bye.
And.