Q3 2022 Kandi Technologies Group Inc Earnings Call
[music].
Good day and welcome to the Kandi technologies third quarter 2022 financial results call.
All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing Star then zero on your telephone keypad.
After todays presentation, there will be an opportunity to ask questions.
To ask a question you May press Star then one on your telephone keypad.
To withdraw your question. Please press Star then two.
Please note this event is being recorded.
I would now like to turn the conference over to D Whoa Whoa.
Manager Investor.
Investor Relations.
Pat.
Kandi Technologies group. Please go ahead.
Thank you operator, Hello, everyone. Thank you all for joining us on today's conference call to discuss candies results for the third quarter of 'twenty 'twenty Chill earlier today, we issued a press release covering the results you can find our press release on the company's website as well as from.
That's why our survey says on.
On the call with me today are Mr. Without me, Chief Executive Officer and Mr. <unk>.
Alan Leong, Chief Financial Officer, Mr, who will deliver our prepared remarks in Chinese, which I will translate.
After that we will have like Youre 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 Security Litigation Reform Act of 1995.
Forward looking statements involve inherent risks and uncertainties.
Such the company's actual results may be materially different from the expectations expressed today.
So that information regarding these and other risks and uncertainties is included in the copy in the public filings with the S. E C.
<unk> does not assume any obligation to update any forward looking statement, except as required under applicable law. Please.
Please note that unless otherwise stated all figures mentioned during the call are in U S dollars without let me now turn the call over to our CEO without me go ahead and Mr. Cool.
So does it go up.
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Great.
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That's what I meant to R&D, you're absolutely right.
So you got people shelters hurdle.
Can we I am totally honest Jamie Lee.
Yes. Thanks.
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Yeah.
Well Jim.
I'm quite a law change.
<unk> Firefly.
So it is true that when you die.
Well you should Oh, yeah sure.
So we cannot say on that.
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The engle waste they can't stay on the year.
With that thinking.
Co op.
Okay.
Yeah.
Co op.
Refractive. Thank you Hello, everyone and welcome to attend this earnings conference call today.
I saw was financial result, which was promising we doubled the truthfully rubbing your breakfast last year growing to 33.7 million from 16 8 million.
Q3, 2021 this was our highest quarterly sales since the start.
2021.
Important if not more so net income turned positive way through the quarter.
We are excited about this performance.
Sit around the global economic slowdown on ongoing supply chain is still not a resurgence of COVID-19.
Solid performance was driven by the strategic moves that we initiated a couple years ago, when we reach erupted resources.
Action to the pandemic.
I would like to thank all our shareholders for their understanding and support during this transitional period.
So I'm grateful to our dedicated employees, what they're not work in delivering this positive performance.
So you're leaving you agree with.
So we also usually women.
Pretty cool.
This is John <unk>.
Molly Chico.
How much you thought the.
Century marching well see what the union.
Yeah in Yangon comfort.
Yes, Brian .
Did you mean.
Cool.
Yeah.
The swing to a positive net income was a function of better margins gross margins improved largely due to the higher gross margin Orange My off road vehicles and associated parts kits.
His plans of operating expense control also come to do that to the bottom line performance.
Okay.
So even though I mentioned Jonathan.
Well I mean sure correct Jonathan.
Uh huh.
For a woman who might choose to sell.
Thank you Don.
And really on <unk>.
No.
It sounds somewhat similar that they deal with the shock.
Joe would seem to me. So we also think that time, yes.
Well I meant I mean walk there.
They can make.
Childhood shoot up.
The big one.
Hum.
Well, mainly T alright.
That shows a photo correcting dealer.
John I forgot agenda.
Cool.
We were pleased with the product mix, which improved as we executed our strategy.
Off road vehicles.
Parts sales contributed over 60% of <unk>.
Total revenue in the third quarter right.
The rise in sales was primarily driven by our strategic pivot and the on boarding of new sales channel in the U S established by Monday America consumer interest.
Salaries being well, our golf Cart U T V and other off road vehicles like that you'll see higher sales and net income in 2023.
Yeah.
So yeah, well maintained well maintained.
Sure.
So how are you doing G women, who you're talking about.
Well I mean to put you towards that so no tinder gigamon team to pillar John Shaw shelving.
As usual the only woman named John Lewis should Patrial goodwill.
Yeah, Chris.
So it seems.
This is the time frame.
Turning to the wafer don't try and go couldn't comment shortly.
Okay.
Finally, while we believe that finally, we believe that our healthy cash position enables us to be open to opportunities.
We expect a more top line growth based on all our diversified and resilient business model. Despite possible economic weakness, that's a softer consumer demand, we will constantly launch new products.
Electric vehicle business to gain market share and create more value for our shareholders.
Yeah.
Sure Zach.
I'm, Jeff co op.
The win T G I.
Hi, Sheila.
Let's now start the Q&A session, two I will take any English questions and translate for me.
Later.
Please go ahead.
Operator. Please go ahead, we can start Q&A session.
Thank you.
We will now begin the question and answer session.
You ask a question you May press Star then one on your telephone keypad.
If you were using a speakerphone please pick up your handset before pressing the keys.
If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
The first question.
Comes from.
A year old.
Gabourey.
A private investor.
Please go ahead.
Thank you.
Hello to everyone.
My question has to do with the status of Kennedy's off road products like the case really to off road truck or bikes I heard that dealers want to cater to truck, but it's not yet available almost a year later if true why.
Besides that I have a few short questions how about the various good credits, which I believe are gas powered.
Making it an electrical Clark.
And the other question what about electric bikes are the currently available for purchase and how are the sales are doing.
And my last question is.
So I'll throw it looks like a majority of major primary business in the U S. For Kandi I would think there's time for the company to start breaking down each of the segments and the security filings instead them altogether.
Ford vehicles.
See some some of the stuff that's been done.
Just to put it to me.
Before but we think that we should separate Goku car scoop golf carts bikes and scooters. So that we see that number is reached each group.
<unk>.
Sure.
That's your question.
I'm sure you're well why are you on that.
Josh and Keith how do you see I think all which we'll touch on that sounds wrong carton for asking Sean Joshi of hung out yourself you can see the pendulum I don't yet.
How should you want to watch is essentially a young.
Yeah sure Mark.
I would tell you.
He goes someone agenda and then he was actually goes on into a social needle Chi I'll shoot on the night of them, Yeah, well, Michelle pole wake Holly social appeared Donuts Harbin sure Yeah, well then he should know.
While you didn't don't forget in the booking tool now she Paul Yes, you create a clay you Couldnt go made up so much in itself with Joe and Paul will go up.
Sure hold on either this year bank, all of which was and why she economy.
Oh, well, there Nigel shale well known goodbye to U S. D C. The one that people do not be capable and trucking and.
Got it.
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Hum.
As you head into a vehicle in which were Oh gosh well chiller.
One late like Lindsay at Pizza with having to sell a whole bunch of trouble, putting honey what will they go people, which while I PLO.
This is what I want you.
Oh, that's great.
Yes.
And that makes it go and keep it there.
Well you can be a key.
No you won't see that.
What's your not just the turnkey.
Okay.
These are the timelines.
Jim do you want <unk>.
Yes sure.
Vince will go into our portfolio.
Well I mean, it sounds like countries.
Sure.
Thanks.
Can you go into <unk>.
Okay.
Great.
Let's start out with general it mentions in the.
So you cut out.
Oh, yes, yes, yes.
Yes, Tim.
Yes.
So I will mention that it's for you.
The way to put it in the fall.
And my children in FY <unk>.
So again Q father truthfully easier.
So you would say.
Jonathan the consolidation.
And im sure that cannot infer how women shoes.
Oh, no I hear you can access the woman, that's showing great signs yeah, Dan frequently we won't quite yet.
Well no if we can.
Yeah.
You see the onshore.
So again you see that.
Quick Luisa winter who quickly.
Today's decision why you ought to have a path to ensure the pedal.
Yeah.
Oh, so first of all thank you.
He will play a questions. So regarding the production conditions for their case 32 off road trucks, we have been refining the whole production workflow in the past few months and right. Now we are typical of the food and mass production.
As a matter of fact, we.
<unk> been gradually started to ship in or not.
I'm a process and we will arrange the production plan according to the market demand.
Oh and as far the go kart powered by gas.
The sales volume.
He is also for the whole market has declined this year and so all vehicles, including the gold cards are currently produced by US will be gradually electrified, we just that trend for the whole market, but we are in the mall.
Events position.
And besides we have a we do not produce the electric bicycles at the moment.
And finally, our focus really stick on the pure electric highway.
Highway vehicles I asked for that disclosure.
No issues, we actually expect with that requirement and a guidance from the FCC will make sure we have the accurate reporting and disclosure.
We can see that your point then I'll consider how do we can we find down the road and thanks again.
Yeah.
Thank you very much.
The next question comes Frank later men.
Pivot investor.
Please go ahead.
Yes, good evening tape outs in China, and good morning to those sent me other time zones I have two questions.
As kandi itself the airbag issue.
Guarding the K 23 N K 27.
And either self certified or submitted to the D O T for certification for highway use.
And number two.
On July 19, 2021, a press release was issued announcing the purchase of <unk>.
<unk> XI, Hawaii battery company to give my pronunciation.
What's the contribution of revenue of that acquired company in the third quarter.
Okay.
Thank you for your questions.
How did you when he did you guys share your glass here it sounds like the I T. The engine here on the lunch here I'll, let him, saying gosh, if all of them.
So without getting Seagull Kevlar onshore.
And Chen Qi lifeblood, they'll call squamous Yonder Yang Jong.
Yeah, well when he said that he is with your uncle.
T O Shamble eats Oklahoma scored Johnson.
As you go through that Sheila Marcelo Sanchez dollar shouldn't do that but he bought a shovel culture.
No Doghouses, Daphne she'll protocols with Socgen agenda.
So I wouldn't see.
When Scott Harris unprepared Shiva intention I wouldn't see knock on wood.
I'm here with Jeff.
Thank you Don.
Yeah. Thank you too so no new.
So I'm rooting for you.
Yeah.
Well thanks for your questions.
So we got a big problem for Cage free NK 27, Oh Ed.
We have not been able to we saw that and we are trying hard to do so.
We will keep you posted for any new update.
As for the revenue from that John C. E O. The revenue generated for the third quarter was about $6 3 million U S dollars.
Thank you.
Okay. Thank you very much.
Just one moment.
The next question.
Comes from.
Mike.
Or.
With Oppenheimer.
Please go ahead.
Good morning, based on Q3, 2022 financials to date it appears that the 2022 could be the strongest year ever for Kandi.
To date the company has only put out one breaking news type of P. R. Back on January 10, 2022 Candy P. R announced candy interest framework agreement to produce battery swap enabled electric vehicles referencing assign framework agreement with Hunan Penguin automobile.
Company to jointly produced battery swap enabled pure electric vehicles. So let me ask a few questions regarding this relationship.
First on the last conference call. Mr. Hu said, our cooperation with hand grenades, mainly that we are responsible for the production of the electric vehicles that enable that battery swap mode. We produce the motors parts and then Heng Ren will take our parts and assemble to be a whole vehicle what does it mean that we are responsible for that.
Production of electric vehicles, but on the next line you say hanger and we'll take our parts and assembly to be a whole vehicle. What is the difference between production by Candy and assembly by Hanger and is the final assembly at hanger in our Candy Haiku facility. If this is a JV what is the detailed sharing arrangement.
Thank you for your question.
Let me translate to you right now that you can ask after that okay.
How do you want to issue sure.
July Osmose Wood, you, sometimes yeah on the on your <unk> Doshi H I G.
It's a challenging that are eager to ito.
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<unk> Costa champion alcohol, Joshua Young Shanghai, one yeah, but the twin Dandle quichua industrial.
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He told me was long gone.
Sure I'll call Joshua Italia awful lot, Sean Penn one damn button again, no quichua no space Glens G. Russia, Vishal Blockley downhole, Oh, we don't swap for me right now so that's one that's what we all share woman uncle assertion Shan Nen go Shankill, one day in Washington D C trough what.
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Okay.
So is any of that wouldn't be winter you're doing what you can tell me, whether I, saying, one thing and say well maybe you can end up that's what I'm going to jump on that.
Thanks, you, Sir Tim for you already what's your country.
Financings.
Thank you Lynn.
With that in <unk>.
And then the thing that.
Same time.
Joseph somebody who can handle.
Okay. So the cooperation it's really it depends on the regulations from China a system. So.
The way we work is basically for that are the key and main components Oh produced by us.
It can be high NIM and our partner Henry <unk> is responsible for that finally assemble all of the vehicles and those vehicles.
Good with hen rents put that's been qualifications or the license.
So that's how we cooperate.
Okay. One other question from a PR by hanger and on its website in China October 13th 2022 they announced there Heng Ren each twenty-three, formerly the candy K twenty-three with quick battery exchange has been officially officially released for sale.
At 139800, RMB around 19800 U S. D can you give us some details on this and if true why didn't candy puts us news out in the U S. U S holders have been waiting for years for candidly backed to be back in the China EV market.
Oh, that's out lunch and I'm sure, you'll see a woman kind all right John Thanks.
Junior English, yes yourself I'll now Pablo how seamless.
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They work with all ESG adult fashion week that.
Shimon Cangiano Gulch hometown Jungwirth at BMO trustee shop.
Hi, This is Jeff.
And then it says good things on the AC alright. Thank you.
Yes.
Can we can put the Congo beans, alright, Thank you Sean on the shelf.
Yeah, we had some more time.
I mean generally without <unk> shoot that contact.
Sure.
Since injection cope with tier two that can create somebody who could you have done the.
Mark are you when a woman.
We've done that supports is that what you asked for two part.
I'm, sorry, Sean Creamer using.
And Oh my.
Ken This is Tom Toomey with Jim Congress pass on to Jay.
Yes.
Thanks, Jim.
Well thanks.
Alright.
Sorry for my patients.
Yeah.
Oh, Okay. So the update is that the.
The model <unk> three that we manufactured Hum along with hungry man was actually announced by the Ministry of industry and information technology on May lessen. This year. So basically we are approved and qualified to produce and manufacture such model in the PRC market and they will.
Small amount of the debt incurred in the second step toward as of this year.
At the moment, the China's domestic electric vehicle market.
Still not in a healthy orderly development stage many hum.
The companies they even try to sell with deficit by loss in order to occupy the market. So right now we're we'll keep track and try to improve however, with Stein to keep and retain the small scale operation at the moment in order to keep our budget and our cash and we would definitely.
Accelerated progress when China market become more healthy and profitable.
And we will keep you posted and if the update of course, thank you.
Alright, just really last question and thanks for your time, what does this really mean to Kandi I is this part of the 300000 easy program what specific revenue a mountain sources.
This kandi get from each sale.
With Geely, we knew we got paid for the parts and 50% initially of the profits and loss how is this the same or different.
Yeah.
Hi, Mr. Yao will house, a woman's usually Joseph Blanco.
You won't see that children central while lumpy and I'll draw your father.
That equals but should they come to you Joseph.
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Do you need a whole menu development.
<unk> Oh, my God that would help out until we're sure that.
Oh, she's on the Libra, what are your potential to help them do should oh.
That's right no.
No.
Yeah.
Oh, Hi, you'll come up with have you found with Samsung.
Yes.
Yes, so chip afternoon call.
No matter, what maybe you can notice that's on E rate that woman, that's where things kind of fishy, Craig when we came to the Congo Shaw apartment goes I'm not sure. So.
Sure.
But it seems kind of tricky because st.
So is the Diego and they're gonna woman or the Sui slightly woman. She also good Linda Chen sitting talk took a trend yet.
So do.
Can you do you finish on P that one took some.
Some pizza, that's how you're not so a woman can T D.
So let's see how critical question that the one time temporary buttons.
Tom.
<unk> could be right.
Turn down closer to 40.
Linda that's why not just make one she doesn't want my mandate hockey linker toxin EBIT alright.
Yes.
TD. That's that's why that's why you see goodness that's all my.
My question.
Yeah.
So first of all our cooperation with Hungarian means now Oh electric model, it's 23.
It goes by a corporation or <unk>.
By the Ministry of industry and information technology, So, meaning we are now officially approved and capable of manufacturing in salaries such model in the PRC market.
You know, we don't have such qualification ourself, that's why we are working with a homerun.
We work together in order to get such a highly qualified process in place.
Well as for the income and the revenue we basically get all the income generated from the complete set of parts, we sell to hand rent.
Unlike the cooperation with Chile, which we are in the joint venture relationship, meaning we will share in sleep, whether there's profit or loss.
The relationship with hand Randy.
A partnership and then the trading relationship, meaning we would generate the revenue that as long as we deliver desktop the EV parts to them and then they will go and sell from their own resources, but basically the revenue generate at once with the labor to handle that.
I hope they can address your questions.
Thank you.
Okay.
Yeah.
Just one moment.
The next question comes from Arthur Porcari with corporate strategies. Please go ahead.
Good morning, Mr. Hu, a really nice quarter I'm glad to see you beat the street estimate by about 15% and went from a negative to a positive on net debt.
Brings me to my question today, it's going to be a little lengthy I know they usually are but this one is important because this is primarily to do with new U S. Candy electric golf cart crossovers and some recent discoveries made so this may require me to lay down some background first so let's start with that key what tell them that.
I. Thank you for your question.
Huntsville Collagenase G two quarter that you'll eat.
Hi.
I could tell you do not yet on cultural lush cultural all hard yet they still going for that E. G until they're young and Chi Wen issue.
I can touch on that.
Two questions Rami Geneva.
Uh huh.
Chris I'll, let Joey answer your problem and that God for sure, but you see a bunch here.
Go ahead.
Okay.
On our last conference call, Mr. Hu confirm that Oh.
The earlier 10-Q also at Kandi had at that time received two contracts for electric golf carts totaling some 70 million U S dollars. This year with almost all in the second half. He told US he was anticipating strong immediate production in the vicinity of 2000 golf carts per month.
He didn't tell us, which who is going to be buying all those golf carts.
A few weeks ago on infill I got from an exciting candy independent dealer.
Whose patiently waiting for zone golf golf Cart order and the truck by the way that lowest Corp was now selling candies golf carts.
Actually I got an him it's I couldn't conceive.
Such a huge contract would not have been announced by the company.
As a regular at Lowe's I'd never seen golf carts of any brand there'd be installed.
This time to my surprise, a really sharp golf cart was right outside the front door.
Quick look around I noticed effect late said Coleman.
And I saw a small inspection plate behind the front right well to my amazement said candy cruiser with a K S. C Auto sports, which is candy subsidiary company, along with Candy Americas, Let's address.
I'll stop right now you can pass that on to Mr. Hu <unk>.
Okay.
Okay.
Okay.
Hi, there wouldn't be much of what you're planning on the Gaza Cotton sure how long was that shelf with Yahoo shallow question Joshi towards the other.
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Don't cause which hold for the whole year.
So what's your base Chi Chow on that yet and she will do that.
Josh it's yet I guess.
She does.
Yeah.
Yeah, so on costs with Charles Schwab, a challenging time yeah.
I shall answer me I'll cheat off cause the trophy <unk>.
Shall I say like Oh, My Gosh, Oh <expletive> I go my kickoff, which ochoa Nazi Georgeanne Pawnee County, that's what he didn't tell Shah.
Palmpilot.
So she'll make without Lowe's quite school children, social comedy that stocks in church, what she's what's your what's your Hawaii. They play concept with wake Forest.
But going forward from a body shop at home.
What she said she low some good initial hello Kitty.
Yeah.
You you like what do you how are you treating the whole towards young boy, you don't catch them heck off with Joe truck that loves to Tricia can you walk on our.
Thank you gentlemen.
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I'll call them that.
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Coleman, because we told you on Oh, Gee Cafe, Hangzhou going up so yeah, I think yeah, I Youtube or the New York, Shanghai Java, Hopefully I'll have told David Lafitte House gatehouse.
Yeah, all the Hopkins with Ontario teachers shouldn't Downzone the alky at all no smiled that gosh I told you what the delete genes I'll show my conjecture here.
You know what type of Cuomo shall I didn't see a deal as well.
Yes, I think so.
Yes.
I'm sure there's I'm, yeah, well that was true.
Tom Amato.
Go ahead Hugh.
Okay.
Went back into the store in the gardens section saw a second similar Carpark Behr Ultra price at 9999, which was under the candies 10999, MSRP that you have on your website and then checked Youtube as Kent found that actually a couple of very positive reviews. It already come out in the coal mine Candy electric cart purchased at low.
Yes.
Positive in both price and quality by several Youtube providers and most impressive was confirming its 35 mile range and 25 to 30 mile an hour top speed.
Oh go ahead and pass that on.
Yeah.
Well why do you keep going then.
Initially as part of you wanted to finish it.
Finishes PA, yes. Please.
Okay I learned from these videos at the lowest cards for cheaper than the independent dealers students less features front rack ice chests and only two colors and then went to two other loans in my area. Both had the golf carts one of them actually had four on site just received.
The cuts are also available through Lowe's online the U S alone has some 2000 and 250 low stores.
I posted on private chat board about this and shortly members from all over the country reporting back that golf carts for also in many but not all of their local in those stores.
This setup at more to add on the subject, but let me stop now and here and I have.
Question for now.
Okay.
Sure.
J Gallo.
I will not be going through that one caveat is that gonna say show me My sheets, you will change your budget hit you owe me yeah. Thanks for your call and I'm sure I'm not sure.
Angel by Joseph Chalk Ikea I shouldn't.
Now you're kind of accomplish I'm Glenda ease yet you should have a ship hainsey Jimmy I'll spend a minute yeah, I don't know what else you value.
You got me on that lowest but the answer is yes, yes, Hello, It's me I'm not sure I see it and then how much of your Iot now that's Hong Kong.
Do you hold what you'll die woman they'll comedies holds which are less than IL.
Him back question, Yes, I shall Oh, I'll stop with that.
What what's left.
Oh, no Oh, well, it's an Iot glut one of them to you.
Go ahead please okay.
Okay. My first question is why were shareholders not told about this it's incomprehensible that Kandi would do a private label deal with multibillion dollar Coleman for Lowe's, one of the world's largest big box stores to not put out a press release I'm sure even easy go the largest golf cart maker in the world when it put news out on something like this.
I'll, let it go mentioned Nigel.
You'll not interesting.
Male and I appeal somewhat by the jelly Comat shouldn't Englishly Shashi me and they go through a number of in house. So that's what's actually Joseph the option had to tell you.
I can't say I know something about it Mike hunting, yet he social well then they'll connect all of their seamless. She says she does shop easy called Jama, Boston, Laguardia, which ended up at home can you do it.
I think I suppose in PLO.
Susan if I have to go in.
T Oxy for.
So just switching on my feet on me here with that property.
Banco de Chile, Anchorwoman, Dai Ichi bought a playbook.
We applaud them.
Okay no problem.
Yes, Hi, Jessica.
So when we all thank you.
Okay.
So for certain transaction, even though we have not released the individual news separately about Matt as you imagine we did include <unk>.
Includes such transaction in the earnings press release of their first quarterly report off this year. There was released back in May 2022.
But ongoing we will consider such a transaction and maybe consider how do we improve our press release channel.
Thank you.
Okay, well hear something else too you may or May not you might you might have heard about it now you probably know about it puts you probably didnt have any shareholders to get access to this <unk>.
Additionally, members of the private cap Chalkboard recently discovered a publicly available subscription service tracking all commercial container movements globally through the surface. It appears he can he has already shipped almost 500 containers in the past four months.
These are 20 or 12 carts and each container depending on whether they were for cedar carts or six here with this level of information easily available to the public for a few dollars subscription it seems almost unfair to unaware of shareholders to be left in the dark on the information. So I. Appreciate the fact, you say you're going to start looking at putting out more news on this.
Let me go on a few weeks ago with candy in the low twos and 30% discount to cash a 60% discount to book value with no news for eight months. It appeared to many that Kandi was going out of business I, even know some long term holders through them. The Chow sold the stock. However, with this information available it's easy to see the candy.
As already embarked on an incredible future and just is very hot sector alone. It could pass 80 million in sales.
Second half of this year.
Surprising all of last year's revenues.
I mean, you've already said earlier in the year, we should do 70 million on the first two contracts and we did about $20 million. So far so we should probably do the balance I'm sure in the fourth quarter anyway.
It's very rare that blue chip companies, such as Coleman and lows would risk their reputation and give such a vote of confidence in such a new providers candy and this high ticket market unless they saw a bright future together.
So let me wrap this up with a few more questions. So I'll go ahead and pass that onto Mr. Hu and then I have just three more quick questions.
Well well have gotten too long as you're on your way, so I want to wish him well not an unfortunate thing gotcha.
How soon does share it you should it's a comedy the close the polls.
Told you and what I found there not exactly sure.
I'm, Michelle MA the boundary of shaft five.
Hum.
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Toward the Omega Jonestown cause you to ask you when you shop with golf, which old truck now, we'll just say that <unk> done you see I told you I'll tell you what you mean and you went off without them.
It seems she though on Brooklyn sponsorship moms, that's what people do it all day.
Yeah, I see people I'm sure.
Oh sure sure Humboldt comes in that I cannot sachi Georgetown County, Yeah.
Selling bellagio, yeah, I'll leave it there.
I know you said, yes, Georgia bottom just sense, yet telling me a judge of the passenger little <expletive>. That's your own kind of nice closely you'll now see England to take them a beautiful just help me out with them, they're going to come no.
I'll be a lot.
What did your colleagues here, who don't do silicone window film its policy on my myeloid cell kill the chute just hang.
Hi, Alethia that an English that being simply an adult male younger students.
Christian I suppose yourself since you called me Jim talked about you got me, telling you a minute really I cant hi, Chi lot. So xiaomi nine interesting, though their lives than no gun tertiary so.
Hum Battler lunch, what was the low sluggish yet Coleman, how many seismic where you're seeing the trend until you'll how hot it gave.
Let me now wish him a comedy side yeah on the.
And how many are attempting John Mccool, yeah, I, Apple bathroom tissue to inculcate realignment.
Go ahead.
Yeah.
Yes.
Yeah.
Uh huh.
Yeah.
Oh, sorry go ahead.
Okay. In addition to the Kansas Yeah in.
And to the candy for Cedar crossover cart.
Some independent dealers and also on the Candy America website are now showing two additional variations the six seater aforementioned and a new modified version of the four seater which gives up the back seat and replaces it with a hydraulic dump bed and includes a 3000 pound electric winch on that front.
You're telling me version, which seem like a natural furloughs do.
Do you anticipate the Coleman loans were all taken on these new variations or at least be mainly for independent dealers.
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Hello.
Hum.
So let's go back I guess your daughter.
He sees how shall I say, hey, you should that come in for Shlomo Daniel No truth Yonder cannot get into Atlanta Churchill.
Usually I don't put hold up.
A lot of them put them up on but you could see a little joy either sort of blessing that came back and that's really the function of holds where people take them I E.
Oh, yeah yeah.
Gotcha Gotcha mm seems light bulb.
Ballclub glut.
Center found that can't go on Calpine J.
Okay, Great Uhm depends on D D.
He loves the lifestyle shoes, Shinsei Thomson Rhonda mutual Shuang John C change at all our coal met coal counties or lounge cool, sorry, low so cool without sound mentions in social.
Yes.
Alright.
Therapy, you can ask.
So why don't I go ahead.
Designed Shanghai woman shirts.
Okay, Yes.
She is on general program very cool. Thanks. So this is just a matter of time.
Probably similar in terms of the keyboard.
And I have to say your pedal with them continue that's not single well known quick too.
Torpedo.
Sure.
Sure.
Sure Andrew.
Because your time today.
No.
I'm not sure.
Me too.
Chris you want me to.
Since that happened and she saw his shadow.
People would even for your video.
To hit that.
Hmm until the actual.
Okay.
Okay first of all about the.
Inflammation.
Update development, even though we may not have the individual press release separately. However, we have always disclose such information and related analysis are in our quarterly reports and.
And based on your opinion that would take a seat up that and I'm trying to do with final disclosure as much as possible in the future.
And we got in the.
The product information that the questions that are the more that they put about I guess that we are still working on.
The details with our partners in U S market. So we may not be able to disclose too much at the moment, but please pay attention.
Two upcoming disclosure for any new development.
So stay tuned please thank you.
That's very encouraging.
A couple of them I seem to remember from our prior call the candy hasn't China partner with this project.
So who is it.
What facility is making the cards.
What are each company's responsibility each company's revenue and profit sharing terms in percentages.
Yeah. The ones you share what's your thought that you turned you off with Angela Kinsey O G box on to the shelf will not go through whatever causal for banks.
J J do you hold a whole bunch of vishay, she's any dockland home Joshi light light.
Shall.
I can't let me just go to a concert Honda friendliness.
Hey, Jimmy that go into the shoulder. So he joined that leave a bunch on the calpine by lumpy for sure.
Yes.
Depending on what month I E G boss and she don't want Junior are you a fan currently high na.
John it's producing food challenge or what are your friends. So I appreciate your Samsung.
I mean be Sunshine.
Yes.
But there were ceramic G.
Hi, Cole.
Heiko.
Josh Hi.
Could you give examples of it.
I'm a.
Okay.
Yes, it was the balance sheet.
G challenge, forcing us to close the violence of Samsung gear at Sam Moore.
Yes.
Joe Castillo Hi, Matt.
That's the time, Matt Thompson, that's in fact right now.
Figure out kind of economy.
Yeah.
I'm encouraging thing a woman can soon for the DRAM that for me John .
So that's my opinion.
Okay.
So that's where our questions Oh partners is cool Jiangsu seem too we got any such transaction.
Actually fully disclosed.
Daily reports since the first quarter of this year in February of this year and John C seem to find a joint venture agreement to jointly invest approximately $4 6 million.
U S dollars.
<unk> is a new entity is called Henan can be holding new energy technology Company limited.
At the high school with city of Hainan Province.
Well group.
Candy Hainan holds 66, 7% of such entity, whereas the <unk> seems to be a host 33, 3% of the entity.
At the moment.
The crossover golf cart is manufactured by that new entity high non candy holding.
Even though the pedestrian what's taking place in our high and then facilities can be.
They're probably showing scheme is based on the extreme right. The shareholding ratio of such entities. So meaning we will have 66, 7% of revenue generated from this entity.
Excellent I remember, Jim Zoo, and so that's a huge operation.
We talked about dealing with them a few years back.
Okay. Okay. Just about finished here are there any more major clients like this as expected in the near future can you give the shareholders the company's revenue growth.
Our forecast for Q4.
And are you already said 2023.
It should continue in two so maybe Hank.
Forecast for 2023, as well I know if he doesn't like given forecast, but I can ask.
Yeah.
Figure how does that work out.
Sure It sounds from a bad Cold War.
Right.
Oh, Hi, all have to die with Florida.
You said something about a couple of them I mean myself and he gave me a ha ha.
Sheila what you thought you bought.
I can't see him Joe shared me, that's yeah, Oh Ware House yourself on.
The CLO.
Sienna Joshi demand, a social you shouldn't be able to eat each year.
Okay.
And you guys. So much law figure at Balco.
I mentioned that.
G T matching Guangzhou woman the pedal.
And remind me so.
I think I said earlier, our son Yammer.
I'm sorry.
Uh huh.
Finally, I will do that.
It's almost as a franchise in pharma.
Previously I thought it should actually flow through I parcel.
Okay.
Okay as far the major customers.
Some parties they are working with and are in the negotiation. So please stay tuned to upcoming disclosure for the development and the details for the 2023.
As we manage any of the past, we do believe that there'll be a large increase of the rabbit Hill for upcoming year. How that's why we said we don't have such detailed figures at the moment.
Well fantastic job finally, it looks like you've hit your stride and Mr. Who has handled this COVID-19 situation magnificently.
With the stock has done Okay. My last question is just kind of off topic I noticed that kandi has put out an excellent new investor presentation deck on its parent website IR section recently without any shareholder notice usually kandi does this when they're getting ready to attend a stockbroker analysts symposium of sorts and any particular reason why it was quite.
We put out now.
Well it does feel like the women's you know she said she lives.
Dot com, you're taking lots of them were gone. So long I have my father languishing that holds the judge yet Bob P. P. T S.
G. A portion of that venture May Okay, you go off without a single vertical.
TV Donald one times, you'll call me up for my time, guys. Yeah, Oh, Thank you people.
We talk with them either Shahar, how would you answer and I'll, let him. Once he says you told told us which will I guess.
But again email.
Okay.
Okay.
Sure.
Yes sure.
What.
As you can.
You're saying, it's a woman the free time thing kind of Virgin.
Susan.
Yeah.
Thanks for your attention to our website.
Actually with from time to time, Oh, we're updating that content and the information on the website. According to.
The key development of the company's it does a routine process.
Really a specific reason I'm doing that he just routine task force to update their website.
Okay.
Very good anyway, congratulations to both <unk>, two and the quiet person back in the U S. Johnny tie I think maybe maybe Mr who should bring them on the next conference call introducing shareholders. It.
Seems like he has done a pretty phenomenal job.
Okay.
That's okay, yeah. Thank you.
Jacob Fisch Honda C Aloha, Archie and how do you make a city or county, it's almost like alcohol type actually passage on the.
What you can call them mom, she muscles on shop in London, but high you're eating and that all be all.
So you sound like you're talking about yeah.
Yeah.
Yeah. This is Jenny.
T.
Yep.
Thanks again for your opinions suggestions.
Thank you all.
Again, if you have a question. Please press Star then one on your Touchtone phone.
The next question.
Comes from.
Mark Miller.
Private investor.
Please go ahead.
Hi, Good evening, Kathy management, just a quick one here.
On your wholly owned battery subsidiary that you.
Announced in December of 'twenty one.
And your first quarter filings, you achieved $8 million in revenue from it.
A slight drop off in quarter two.
And.
In comparison to what you guys paid it seems like it did it did a really great transaction here for the Kandi shareholders.
With the sales decline in Q2, what was the reason for it.
<unk> 8 million in quarter, one and $6 3 million in quarter. Two go ahead.
And I think when teachers on playing home and at the end of electrical.
And Tien Chau go Oh Jesus shooting.
We wish him well.
Yeah, sure does social South llama.
Okay.
Skin like a desert.
So daiichi that sushi in Shanghai tenured against Vishal.
Got you.
Cui.
Great.
Yeah, Neil I mean pizza you Bob.
Yeah.
Thanks, Joe.
And then are you content to go Green.
I mean, yeah.
Uh huh.
Great.
Hi, Tito.
Sure Jonathan.
Yeah.
Yeah about.
The easily imagine should.
Due to the continuous impact of the pandemic and the.
The lockdown the disruption of the market for the demand in the whole production chain.
So it brings the whole.
Decline after that.
Supply and demand in the market and subsequently of course, but that was off the lithium batteries are worth.
Impact that you know proportionately.
Although we have a more stable revenue streams.
Oh, three completed quite a few who stays around $6 3 million in U S dollars.
Florida Ho Hum fiscal year of 2022, we expect.
We expect it will generate roughly 27 to 28 million U S dollars of yourself from these johnsey entity.
Oh, that's that's good news Okay. One quick one here or just Kennedy OEM did they make their own batteries for their own golf carts bikes.
Cars.
Et cetera.
That's not one country of milk with your Oems.
I'll wait till you don't cost, which will show up with the Kindle that tension she called cause your OEM again sure.
And then Sundar women.
Yes.
How do you just go ahead with your.
Hi, Joseph.
The agenda for children dancer C&I same store pool.
The pacing of R&D against that netted against and that's what you want for you to Dave.
Yeah, so basically the Gulf cut there.
Two types of the bad one is done.
Latin is it battery and the other one is the lithium battery.
So we are now gradually switch.
Motives from that as it relates to the.
Battery, so upcoming E will manufacture more batteries for a golf cart.
Okay, Great and then last one here how am I pronouncing that subsidiary name, we H y Y how we pronounce that name.
Quake E quite okay do they do any private labeling for other bright battery companies.
Do you have to those Yahoo Eagle Fisher Falcon she'd had a causal sometimes like you said you shouldn't hip high Def whatsoever.
Okay.
Hum.
Kenny you.
Pick a higher density I think one shoulder being cheap hire Fuji.
Hum.
Crazy turbine.
Nah revision surgery.
Okay.
Yes, so where you have to have their own market share and so they have their own brand. That's why they easily it is manufacture their own brand of batteries with the OEM, Florida companies.
Okay great.
And thanks for taking my question what are you guys all the best and keep up the great work.
Thank you. Thank you.
Yeah.
The next question comes from Frank Lederman, a private investor.
Please go ahead.
Yes, Thank you for taking my second.
Question here with regard to your reorganization plan.
One what is the current status.
Part two is.
If it goes forward well your peers continue to be listed on the NASDAQ and if not where and at what stage will shareholders know.
Three what is the legal impact of Kandi incorporated in the British Virgin Islands on its obligations to keep shareholders apprised of material development.
Legal obligations aside.
What do you intend to do once you are incorporated in the paper.
Our British Virgin Islands, with communication to shareholders and number four here the last part what will be the impact on candy filing and communicating quarterly earnings reports once you are incorporated in the BVI.
Yeah.
Thank you for your for your questions and I'll touch on personnel and LNG, all you'll cicala Tushar Jain at times with all of them I can say that you got them.
Truthfully Draggy, Chennai, yet it seems that adult Shanghai Chengdu.
What do you guys sitting tissue launch on tweaking.
No woman does a woman Ocala jump way finally, some lumpy on what I'll call helical Cashable houses that know, Pakistan launches and Kelly, who Oh, what's that.
Hum.
And that's what you saw I'm sure My Kid was a woman so like who.
Who don't place yourself.
I will then share Hum E. Two on so on equal to a D D.
D V I C equaled all Nashua.
Alright, so should I consider the payload people Jewish homeopathy, you'll show me on that to Chi Tung onto Hawks Quill.
Oh sure My appeal, Yeah why don't.
Don't you Dan that you kept those holes.
<unk>.
Yeah, Hi, I'm glad you shouldn't who go up you guys will touch one wonder why.
Oh sure.
Yeah.
I'm sorry can you repeat your last question.
Yes, what will be the impact on candy filing and communicating.
<unk> sports.
Perhaps you hope and you said, Google Com Tw.
She was we're trying to eat and you'll wonder why the D. T. C. M. P law makers people with that type of wheels from young CFO .
Sure Jamie.
Finally, as I figure.
Yeah.
Right.
Theory T V I see okay.
Speaking of Enzo well mentioned 110 times or Q4.
Sounds fine paper through and get some Paul everybody.
Figure.
When do you think you'll be careful we don't operate.
Hong Kong Tokyo <unk>.
Oh.
And they've got to truck.
Hum.
Changzhou, Tijuana yoke, well don't repeat them.
Well men diagnosed with Pakistan.
So that's the way it's possible.
Oh boy painful tangle.
So that part of your plan.
Jonathan Johnson.
Yeah.
Currently that's one to you.
Hum.
John Please go ahead and do that Paul talked about turnkey D.
She was on <unk>.
Hi.
And that's for you John .
Women don't go with hunger pillow.
There being no more.
But PV 10.
Quite a tissue.
Hey, So you see the same book so it seems that Peter was the auto dimming Zumba Shanghai than wind, yes, Chris I won't call you to generic and grad pedal fishing.
Yeah.
So we got into the status of that.
We are gonna station in a domicile to BVI our companies still in progress.
Picking a such a task.
In the meantime, we are completing the form F four that.
Following that is necessary for the reorganization plan one stuff form F. Four gets effective we would then plan to hold a general meeting of shareholders.
What time that time.
We will have the voting due to determine whether the legislation to BVI and myself can be completed.
And once the reorganization plan is approved by the general meeting of the shareholders our listing status on the NASDAQ and to remain unchanged.
So basically actually the legal structures can be more accurately reflect our operations our development and then our all the planes upcoming and we believe with such reorganization can protect the long term interest of the shareholders to agree they expect.
And then there'll be booked.
No worry we have still a wiggle a NASDAQ listed companies, so our communication and disclose it to the shareholders I'm actually we will be pretty much the same with felt much material changes.
Because for all the disclosures and such as the financial reports, we have to file quarterly.
Based on domestic requirements and.
All other public information, we will be submitted and filed to the public as per the requirements of the FCC regulations.
So that's pretty much it for our.
Status update for that work on this Asian play Thank you.
Thank you very much.
The conference call was coming to an end I would like to turn the conference back over to <unk> Luo.
Oh for any closing remarks.
Thank you again for attending today's conference call. If you'll have any more questions. Please feel free to contact us via the email.
I R app can be.
It can be technology stop Candy group Dot Com you can also contact our IR.
Adviser Blue shirts, we look forward to updating you on our next earnings call. This concludes our call for today.
May now all disconnect. Thank you.
Again the conference has concluded you may now disconnect. Thank you.
Yeah.
[music].