Q2 2023 Kandi Technologies Group Inc Earnings Call

Greetings and welcome to the Kandi technologies second quarter 2023 financial results Conference call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone.

Pat as a reminder, this conference is being recorded it is now my pleasure to introduce your host <unk> Investor Relations director. Thank you you may begin.

Thank you operator, Hello, everyone. Thank you all for joining us today on our conference call to discuss canvas results for the second quarter 'twenty to 'twenty three.

Yesterday, we issued a press release covering whole vault will come quite in the press release on the company's website as well, it's foremost wire services.

On the call with me today.

Michelle Neal who is chairman of the board DOCSIS, yet painful Chief Executive Officer, and Mr. Alan <unk> Chief Financial Officer.

He said it all.

Well deliver our prepared remarks in title, which I will then translate after that we will how bucks youre a session.

Well 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 as such the company's actual results may be materially different well my expectations expressed today.

Other information regarding these and other risks and all certainty is included in the company's public filings with the S E T.

The company does not assume any obligation to update any forward looking statement, except as required under applicable law.

Please note that unless otherwise stated all figures mentioned during the conference call are in U S dollars with that let me now turn the call over to our CEO Dr. Kim Dong.

Please go ahead.

[noise] does it fall.

Sure.

On the CEO position.

Tom Sanjay can you please.

Cool.

Hello, everyone.

Shaking down.

New York Kandi technologies welcome to our conference call today.

Hi, Josh.

Of course, yeah, they're cheaper.

But there are two of them in their social showroom.

So Chilean punchy, Susannah Towboat Shishido Chin.

So you think so you will not change.

Time utilization for sure.

That's a good general notion that central well meet with cheese.

She said the tissue.

It shouldn't in those cities are frequent with trillium too much it on our social that citizens are.

Cool.

Hmm two person the key resolved all of our second quarter join.

During this period, our sales revenue soared to 36 Amelia in U S dollars showcasing our impressive growth rate of over 70%.

Parents with a thank you over the last year. This remarkable achievement is that the rustler vault, all fall whimpering fr and dedication we have put into product transformation over the past few years.

Our exciting journey.

To develop a series of cutting edge, all electric off road or Terry in vehicles, using auto technology, which played it.

Pivotal role in driving continued sales growth.

[noise] gotcha.

Nonetheless for the semester.

Joe This is Jim.

Since the end of town shoes that too much.

So I'm with you on.

Cindy.

So part of Switzerland.

Cool.

Okay.

In the second quarter on that Paul said reached a significant 4.4 million U S dollars.

La office into banks, demonstrating that we have achieved significant success in overcoming the challenges of the past few years.

The achievement is a result of our commitment to optimizing our product mix and targeting higher profit and fast growing category, while keeping a close eye on our customers' changing demands.

What do you want.

Tanya maybe a sense of how well are you even cobalt youngest son, you My Chung Judah.

Sure.

Sure.

Some details that can travel to Susanna woman, telling Chi Wen Li.

You might as well that's.

Sure.

Awesome.

That's true without kind of should I talk to him, leaving the agenda.

Correct.

Furthermore, as of June 30, 'twenty 'twenty slate, we had a robust cash balance of over $230 million, giving us the confidence to tackle challenges and seize the opportunity.

Moving forward, we will continue to strive for and innovate to meet customer demand steadily advancing on the path of sustained success.

I want to express my gratitude to all of you for your unwavering support and dedication to our shared vision.

Akshay, let me say that one mckesson and whatnot.

What's that meant there was around town without that cool.

So these are new Jason.

Gotcha.

Yes.

Thanks, again, and now we will move on to the Q&A session. Chad Mouthwash help me and I will answer your questions and a nice Q1, and then Michele Allen will provide translation for English questions. Please go ahead and ask your question.

Operator, Please go ahead.

At this time, we'll be conducting a question and answer session. If you would like to ask your question. Please press star one on your telephone keypad, a confirmation tone will indicate that your lines in the question queue. You May press Star two if you would like to remove your question from the queue. We ask that you limit yourself to one question. So that others may have an opportunity to add.

Last question.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.

Our first question comes from Frank Ladderman. Please proceed with your question.

Yes, good evening to those of you in China.

Good morning to those of you that the United States and Europe .

I actually have two very short questions.

Last authorization to buy back shares expired at the end of December cash.

The company submitted the paperwork for another buyback and if not is it under active consideration.

Yeah.

Oh, well I'm glad to see you go once you're not sure. It's a hoist so local Catholic cultural Chang.

Junior in the shower, yet the Joe about killer older Sheboygan, Giselle agile she passed away at Calder Winchell Goldblatt, Henry old Opana simple joke with Eric Colson CEO colleague Bunzl.

Yes.

Hum.

Mirrored cheap with a quick one for you from a well when the more D C O John Nicols.

Philadelphia.

Hello, Jonathan.

Oh essentially this is a cool feature.

Does that answer that question without some families.

Oh sure sure.

Yeah.

Okay.

So thank you for your question.

The company currently has no sort of plan for the tie back transactions.

Our goal ultimately is to strengthen the fundamentals of the company and create the largest value for the shareholders.

With our stock price, we believe that once the company's performance improves financially.

<unk> bring up their attention and attract.

Investments on the market.

Thank you my second question.

Hey, just a little bit different than what I initially was going to submit.

With candy scares, Sean and apparently above the company's pricing market capitalization.

And a half dozen new products why hasn't that been only two press releases this year.

One two and out of the CEO transition.

January the 11.

I want to announce the acquisition of no other ink.

On June 26, which not at all announcing new products.

Yeah.

Go ahead.

What's your question.

I'm, sorry, I thought I was on with Kandi is cash.

Question, just a little bit different than what I was initially going right I got you felt that part and what those panel for use with.

With Kandi as cash on hand, apparently above the company's market capitalization.

Does the new products that have only been two press releases. This year is the company planning on having additional press releases since we are now.

Hey, very good profit making company.

And is it time to start Audi our newer products.

Okay excellent.

Once you know physician she's probably yeah, yeah. When you shared that Jane you cannot go meal Hum.

I'm now going through our venture now, which I'm kind of like I'm flipping Mayo home well, yeah. The belgacom Sheila well the 10-K that you had some quite well generation locals that Gilles yeah, well it didn't even actually you have initial whole team, who oh that didn't ship that hasn't actually.

Taking the she'll go Hum Keith why now as long as you have Asia, both ways in that weird that you people don't do that.

Transmission.

Dallas to Chicago, but hunting the two year financings on call today.

Okay.

<unk> search engine.

Thank you.

Oh sure.

Good luck.

So you're not the only ones today gentlemen.

Thanks for the Sega social.

Doug Cushy this woman of tankage how's it going.

No.

Somebody in closely.

We believe.

Oh, Hi, Cody.

It tells it purely defensive.

So the company has to be adjusting our product mix.

That is.

Last few years.

Did we encounter difficulties from time to time and sometimes it may not go well as we expected. So it will end up adopting the strategy of refining optimizing our products before we disclose too much. Unfortunately, the transfer me for certainly for our protein production.

<unk> has achieved a successful result in the company has turned losses due to gains in the first half of this year.

Ongoing we will consider to refining our disclosure approach to that.

To the public.

Thank you very much and congratulations on excellent results.

Thank you Pete.

Thank you Frank.

Our next question comes from Joel Kramer. Please proceed with your question.

Thank you.

I do.

Very quick extremely quick pace Candy is now growing.

How long does Mr. Hu feel it will take before candy catches up with beef Polaris.

At least in the easy sector of the off road vehicle space.

And then I have a question after that.

Thank you.

I think almost matched that honeymoon curve some faithful weapons.

Oh, well essentially Yung Wei County households, what how should one Pentagon G. Ghansham sushi, a honey doesn't hold on Polaris industries.

2000, and I apologies I don't think Oh chalk water yet.

Yeah.

[noise] Oh man.

We shifted out in the release I'm following it closely.

For example, all the things, you're saying, yes and unique content.

So somebody shouldn't kingdom shrinkage and tried to either.

And she.

C C.

We will strive to.

Improvements trained but our fundamental one.

Placebo future that we strive to build the company into one of the leading manufacturers.

Manufacturers in the pure electric Atvs field within the next two or three years.

Thank you.

What new off road vehicles of all types and sizes you can do you expect to release this year.

And is there one or two that Mr. Hu savers, they spit tissue or winter.

And secondly, also what percent of sales in this year's first yes, we are.

Hold outside the U S and what were the top three markets outside the U S.

Thank you.

Yeah, No one G D luxury economy Q1, taking into each one.

And what our market share from.

Mhm gimbal cycles go up now that you have to dump Leach were chosen guns on uncle he Mr. William E Mail clients, who will be at Qimonda.

He is quite soon now hard good ocean fish home shield, she's shopping journey that I saw a bunch of us yet so she's asking Sean bunions ourselves with Angela bushwalking need a social sure she's telling me great mobile social Nozomi of course, you tell me why not sure Sunbelt, social Sikang Columbia should not yet.

Okay.

I'm a woman Sei Jin.

Tell me if this is on a piece of what a certification and getting them from going to surgery or T V.

So we think that's a shame.

I don't know where that Sheila so many women with siobhan yet I would say sure Tintin don't I mean, you called food purchases and of.

Who says she wants at one time, because its the week of four one times.

I'm with you on a woman of time getting to know this isn't hasn't make wishes.

While women cohorts he knows what he also understand although her mushy good how're you.

They have proven their social Oh excuse me.

Thanks for that question, we have recently launched.

The more difficult 10-K, you said purely literally dual mode, a four wheel drive T V. In the U S market. We believe this model will be a favor by the customers.

U S market.

In the second half of this year, we will also launch a pure electric mini golf carts are we hope that this will be another popular motive as well.

At present Oh.

[noise] at present, our products are mainly so in the U S market and then we also have some sales in Europe , and Mexico region through our channel distribute it.

<unk>.

Yeah.

Hello.

As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad. Our next question comes from Mark Kennedy. Please proceed with your question.

Yes, Hello, good evening.

Good morning to everybody a handler alone.

This isn't about trying to as recently announced acquisition of the 20 year marketing and analytics company Northern group looking.

Well congrats northern's upside it is easy to see why candy was embraced this company based on its blue chip existing clientele and vigorous.

Obviously connections to candy manufacturing expertise.

Close.

And flip from already carry kind of golf clubs home depot managers tractor supply and mixed states well have similar demographic of Lowe's.

And now with this acquisition okay straight.

Straight line relationships to Walmart target and best buy Cary do who will one board and to a school to learn even sharper image and Hammacher Schlemmer carry Hoover Board E bikes and scooters. However.

Hoover one connects to Candy, It's powertrain division, which has provided over $100 million in batteries in electric motors in recent years I can see all of the above using various product or how big it can be designed custom or private library vehicles from Kennedy conglomerate of various divisions that already manufactured.

That's in house for 95% of its complex golf carts and duty.

However, knowable.

So as existing clients at the boy agree with our beauty and other nation Brad.

And related industries my questions Paul.

Keith would you go ahead <unk>.

Introduction of ultra like Oh, My gosh.

I don't want to lose you blame them opportunity and she'll go the bonds do you plan on page.

I'll talk a little bit lumpy, Paula, let Michelle take consolation muscles and that way also also goes on the volume of auctions, Danielle social cause a geo.

Oh well.

I was just lucky I'll go on.

All lines have Lanzhou Codelco will change.

I see a bunch of wall of cohort that's all I had.

She's all Gilenya loss are you.

This is of course, you know E Com gave us all sorts, all which is all talking about hundreds of millions.

Yes, Dallas was on loss of fleet one.

Mhm, social outcomes, you ballpark, who chilled sure a whole lot home depot morale melas on tractor supply may stay.

Hello, Scott.

Cobalt Chinalco Hunt South yes, welcome back home garages, so bulks in Hungary, Jamie, let Sheila Guangxi <unk> why am I, not Walmart target bestbuy.

Hum on Cialis, Social Hoover Boy, who were once Jama, Daniel Hopkins Woeful lot club.

Okay on the king of pop on trucks.

How are you.

He also Josh.

Sharper image right 10 months, how much of it but a social not social and ship to home floor by in Chicago at the unknown person trucks now who were one <unk> times on two months tenure is that of course using agile.

Could you just go on hold while you meet them again <expletive> plugging them at that.

<unk> combo, shanksville soy or they'll go.

So it's all as well.

No sushi ORKAMBI sure sure keeping too.

<unk> knotty head hunting, social psychology, which isn't which is all about.

Ikea Super Bad news or should those suicide, all passengers, who oh gosh I'm thrilled to have her changeover Mitchell, who are bullshit <unk> mobile ly to fall below the top line.

Hum coupon your sourcing of cohorts will show a walgreen Ulta beauty Thunder.

Chicago saw one Asia bother to mean answer wasn't that just now.

Now what are you anticipating.

Thank you.

It's lumpy.

Go ahead.

So my questions are quick to still have been done for 50 million cash or was it required to be done for stock by the seller.

Northern Cal.

The division keep all year, both out of the industry clients like Altra, Walgreens, even India revenues, even if the revenues are derived from totally unrelated unrelated business.

Also we're looking at is marketing team continue to solicit this unrelated business.

Oh, well that's G O ones, you shouldn't think that she'll be telling chabal clay you test them alumni even as soon as the line on Trump wasn't not my phone shuffle Y'all show equal tell us Lucia von Trump on Sullivan.

<unk> the former <unk>.

I'm, Keith Weiss shovel, Copano soil Shang source Hum quantities of cohorts, Yeah sure Ulta beauty.

Ah Walgreen, social so Liza one shampoo, so long ago.

I'm sure you'll mention shacks, it sounds <unk> Chabot Johnson <unk> Hum.

Normal cold winter.

Sure.

Yes.

Number one man show go beyond Japan.

The county those shifts.

Uh huh.

The maturity that Ashish opine on increased tank all women to the chemo, which is from that.

So cushy.

There might be a bunch of I'm sure you hope I'm sure there'll be a bunch of how you go and buy a bunch of other incomes or honestly T cell count equals to the time you went through.

Thank you <unk>.

Can you just clarify with it.

Yeah.

So first of all the acquisition transaction of <unk>.

Nothing will be closed with Kansas Richard of shoes, we shouldn't ask school restrictions.

Specific agreement terms, please refer to the equity transfer agreement attached to this quarterly we put up thank you.

As for their business and they go off the company of course. The main go often nothing group is to promote and operate the companys products. That's our main focus but that's what it they would keep those profitable operations and businesses. Thank you.

Yeah.

Okay, I understand and just a couple of more Krishna.

The acquisition terms filed with gas you see since unique if not computing these explained it.

Yes.

For the $3 9 million shares and under what circumstances could be unwind and tychy Poland.

Less than 5% of candy.

He looks excellent where does management see that taking can be in the future.

On the housekeeping, one GB with Oceaneering lunch yourself at Acme Theater Sugar Chakma Hi.

Total other rationale yeah, yeah yeah.

Oh Wow.

Yeah, She's agile sure at Sun Visor show uncle Bob.

So you got data without Shoko Charles Yes.

Thanks, so much and horizontal with telecom, which yourself, yeah, well Nigel sure thing John Congress Blah Blah blah.

Oh, absolutely Telecom July Ah shall humble Tau that Mark why don't you tell them where to go to following comedies or shall we languish and Lufthansa.

[noise] No my circle.

Sure.

She told me Archie you can call for G box within Luna shortly sheet no woman frugal.

The balance of your time.

I'm on the phone for the shuttle trigger pull down and going through this hopefully should all things.

Uh huh.

Sure sure.

So as for the question is about the women's firms kindly referred to the equity transfer agreement attached to that thank you for this great period and in the future of course, we would like to utilize those resources to expand our sales channel and subsequently was up the companies. So its.

<unk>.

Thank you.

Yeah.

Thank you for taking my questions.

Have a nice day.

Thank you.

Yeah.

Our next question comes from Michael Fifer with Oppenheimer. Please proceed with your question.

Hi, I have two related questions requiring some context, the first concerns the candy long promised guidance trend while not yet included in the company earnings press release, I'm happy to see the almost mandatory requirement to ever get wall Street analyst coverage.

Guidance or forecast has now started to partially appear in each of the last two Candy conference calls in response to investor questions and the year end 2022 conference call. Mr. Hu forecast of 20 to 25000 units for 'twenty three on the Q1 'twenty three car.

Insurance call.

Management reconfirmed the 25000 full year unit sales and added three more forecasts, including six to 7000 unit sales forecast in Q2 up from 3000 in Q1 full year revenues and gross margin forecast. The revenues forecast came as an affirmative response to a question.

Of whether 150 to 200 million.

What's realistic for 'twenty three full year.

And was guided to the high end of $200 million by this quote.

So far our forecast we believe that there now will be roughly 150 million even more the top line with a $200 million of the U S. D sales for this year I think we can achieve that goal maybe you could translate that and then I'll get to the question. Please.

Okay. Thank you will languish.

Alison Guaino once you Hassan do you want to shop.

Thank you.

The win T life Insurances are all counting Danish economy go tongue.

Oh I'm, so sure Gustavo so whole foods is able to sell to ship Oswald.

Hello, Paul on cycles of that keep parcel in Boswell.

Well my Yahoo, Golfman cornball coastal.

That's what she is doing well.

Who are you bundling a local language.

So what's your thought.

Claims, which are the ones you know.

Hey, a young young people like Yahoo shop with Sanchez.

On the social yeah right.

Yeah, a lot in Q1.

One Paul now Jose.

These people are in Shanghai, Guangzhou and Shanghai, China.

Oh sure Yeah, no bad all kitchens, what's out more lines on Whitehall Ikea housing's in yellow.

My phone call.

Yeah, I think our social social Yahoo.

We knew about Shanghai, where jumbo chicken pot and <unk>.

Jim Hi, I used a lot stronger entre will shortly talk about Molly Corona, what they eat all of Baghdad truly impression got I take it like a hawk on Weibo.

Gosh English U haul.

How about your floor, Philadelphia household and pool.

But you put out in the self employed and our social are by the way.

Oh, Yeah, Oh, yeah.

Cornell who can call barbell, yeah yeah.

Hum.

Gambari cultural team I feel like the way, our cocoa, Michigan crucial central more relevant.

Go ahead.

If achieved this would be an impressive 80% year over year increase from 22 also from a management response to grow to gross gross margin question for the entire year. The response was equal excellent 35% achieved in Q1 for 16, 6% in 2022 if it.

Chiefs by putting those two together, we could see a gross profit of some $70 million or more than 90 cents a share for 23. My first questions are do you stand by these full year numbers higher lower.

And how about expectations from Q for Q3 at the current pace is a doubling to 400 plus million and 24 are realistic and if so just can do you have the current capacity to deliver.

Hi, Luke was on telephone somehow would you also little yeah. On you gave your guidance clean shaking up on natural downstream Paul on.

Yeah.

Yeah.

Hum.

All right.

We'll go to Baton a bastion of Pony comes out that's why not be choking them I'll leave you with.

One to you right.

The talk with I E.

D equals you got that.

How high they can go Molly new hot button social.

So its union partnership I mean, you shouldn't do again, Neil who question Sheila to Bianca moved all the La County, Oklahoma with humble on iPhone and Molly.

Great that all diabetics and Joe on the Oh, what does it make or showing for Chaco.

Joe Mall right now whether it be one he shouldn't Detroit diesel okay. Okay, Yeah, social round that you push with you I'm sure will go away how should clean sheets agenda of course, you can see real quick on call how should we go deep.

So I wouldn't you shouldn't there be some people are going to Oh.

<unk> got a show me how much you want.

People are willing to share.

Townshend Mcdonald's who'll do huh.

And I saw social way.

Bombay Bombay Barbell.

I'm shocked.

<unk>, who will share the Honda.

Hum.

Suzanne will catch up on those talk all the time now right.

Yes, John .

Social.

[noise] junior somebody.

Women are calling.

Uh Huh quadrature awesome English is that shows what our children.

Somebody who just hold with our children Junior Andy would kill to have a.

Social mobile pneumonia to you immediately.

Number two did is fujihara.

G box now.

And where do you shop on yeah, when we suddenly see a home in the social solo a highway or let's see.

Oh sure.

Since that opinion.

Unwrinkle.

And.

What is your sort of with tissue machine time can.

Yes will do.

No to is handling a crucial approval opinion neither kelsen.

I'm going to go to.

Well listen I need to go there.

In the first half of this year, we sold more than 7000 pieces of the pure electric golf cart market.

<unk> 6000 plots in the whole year of 2022.

And of course, it comes at a higher and significant increase if the gross margin.

For the detailed financial figures please refer to the quarterly report.

In the second half of this year it would be a lift at the sales revenue.

The increase to a certain extent as well next year 2024, we are confident we can continue to grow based on the momentum of this year of course it depends on the severity of the international market and then they're usually acceptance on new products.

For our production capacity.

We have been adjusting in the last few years.

The only if there's a need and demand from the market, we believe that our production capacities to survive.

Nice to meet the needs.

<unk>.

Yeah.

Thank you okay onto my second related part in hindsight on May 10th right. After the excellent last Q1 conference call. The stock price had been going up the prior week, but close that day down around 3% to $3.08. The next day, it started moving up and over the phone twenty-five trade.

Days reached a 52 week high of $4 28 noteworthy during this period the overall market in China stocks were generally weak also there was no published news from Kandi to account for the rise the only logical reason for the move up was the publication and circulation of the conference call transcript led by its four.

Excellent guidance comments my point is that guidance does make a huge difference at the time of the conference call. There was no guidance and the actual earnings press release, only some mediocre numbers. The live conference call likely had a small audience of long time investors and due to only 5% fund ownership and no analyst little if any wall.

Professionals attending these likely the reason initially dropped however, once the third party transcript started circulating in the next day. The move up started maybe you could translate that and then I had one question and then I'm done. Thank you.

Okay.

Yeah, Yeah, that's somewhat of a Wednesday night.

Yeah go ahead, what's your what's your how that's a whole month actually on the doctors that you bought.

Yeah, I think Aloha.

With that I'll say, Jonathan torture, whose it sounds on that banks your size, that's often rebounds in the children's tablet baton for sundial some questions.

Yeah.

Youll remember Shaun Josh do you have.

Awesome Catholicism without Allah.

And I'm going to thank God all of our people.

Alicia Secor CBS , so unless you're township will come from the line of positions open goggles I think both niamh Alexander of Hawkeye that Oh, gosh, a month now with sound way.

Yeah sure Gulf liquid natural gas so sure in Belgium that will should hockey hockey the quinoa, So Peggy sandbox.

Tom Blah, blah, blah, mango, especially downtown they can go out and conduct.

But you always do with all of them up all right.

Hi sung <unk>.

And so of course, there's plenty of times just told us without this hall.

Uh-huh Leehar that Oh sure.

Yes.

Yes.

<expletive> to Haynesville, and Oh, Hi, Sean Quinn Babu shop.

He got what myself all of them, but how about someone's own bonds on the male female.

You may all all questions will be present.

I think this year Bargar light Berkshire name that people that yeah.

So.

I cannot just block which isn't yet.

I'm not sure that how people to get them.

I Kid, which Alex will go with a coupon that's real but don't go up hundreds of robots.

Oh. Good question you can feel that your mail and then Jonathan you feel like ones. So easy go shoe shopping the Yang Thanks, Sheila I think open sandbox, but we view it.

So I'm glad that she's hung up on what kind of algebra.

So sooner or cheese, who that person.

Oh no.

John No.

Yeah.

Oh go ahead, great. Thank you and my opinion, if the company would follow typical successful public company trends, which incorporate forecast and the actual earnings release, which carries a much more extensive distribution profile and stickiness than a transcript this candy best care.

Secret will finally have a chance to be discovered by Wall Street, particularly now in light of candy, having a few quarter track record with its new predictable market of products.

So my last question is in the future well management assure shareholders. They will seriously consider making this necessary step to significantly increase investor awareness. Thank you.

Oh.

What is it.

Oh my.

Goldfish.

Google are thinking.

Yeah, it's been a pretty harsh homeowner shelf with Samsung.

The you know for how long.

Hello.

No I didn't say it lets you should go.

Lucy whaler is heavily used truck tall woman, that's high ball, England, downhole, I'm, telling a lot, but do they seem to have good job quantifying that they.

Based on board I cannot sushi, one parcel of true towards your targets.

Where do you draw the pharma Heiko guar, so you're way going down for sure.

We found in the company's Oaxaca swiftly.

Okay Pos yet.

<unk>.

Hum.

She wasn't like Google how people react well that didn't perform resource yet.

Borgwarner Crushable Colleen.

Colleen.

No young woman.

So sure.

<unk> bulk was upheld.

Paul Clancy will shortly talk a long ago my rule, but hardly dongles.

Sure Yeah. So this isn't the answer.

No.

Most of that changing in I'm Gonna do you go with that was it.

So you don't know who's.

Sure.

So your woman consultation.

Social totals of thousands of families.

Cause you this woman Italian hotels are you treating it for yourself.

In my opinion and someone you're going to see it uses nuclear lean.

I'm glad to say that what.

You can listen to the people who are.

We do them in a commingled fund.

Hmm.

First of all thank you played grateful opinions.

The company has been adjusting our product structures in recent years, and indeed encountered some difficulties and sometimes it may not grow at what we expected.

So we end up adopting the strategy.

Feel what.

Many of these.

Try to strengthen our fundamentals unfortunately, the strategic product transformation leaps to turnaround in profitability.

And <unk>.

And that's why we have.

Income generated in net income generated in the first half of this year.

Upcoming well definitely take your opinion into consideration and tried to explore and optimize our strategy of communication to the public. Thank you.

Our.

Question comes from Arthur Porcari with corporate strategy is please proceed with your question.

Yes.

Okay.

Okay.

Hello can you all hear me.

Please go okay. Good okay.

Alright, well it was a very good quarter.

Oh.

Excellent quarter I no matter, how you cut it.

However, just I won't take near as much time as I have in the past.

The bodies of precision I think did an excellent job.

Uh huh.

And my question's a bit bizarre, maybe but somebody on my question is who is just call positioning cuckoo sports Technology Company limited and how does it relate to Kandi, but let me give you some background for these questions first.

He was perusing the candy products on Alibaba I discovered a very impressive marketing sub website on Alibaba for a company founded in 2001 Colby.

Oh, Yes Yang cuckoo.

Sports Technology company at first glance, it looks like an international wholesaling sites specializing in a lot of off road vehicles.

Several different variations.

Some they are showing some 246 different off road vehicles, both electric and I see that can be bought in bulk at wholesale prices. It's.

It's impressive homepage features some very familiar looking vehicles six to be sure.

If you look closely you'll see that in fact play since kandi.

On about three of those vehicles.

The rest of them all have letters and start with K D, which we all know that it's been around for what KD as Kansas designate or.

So interesting that this is a shows up.

Almost as if we're in Candy site go ahead, and tell that to them or something a little bit going I'll ask some questions.

Okay.

Go ahead Keith.

So on a bomber goes how much with Oh, well, Oh, I'm, so glad to Lindsay will shift that long but.

I just got two a gallon cool Clinton don't cause you assemble.

Sure so.

Hmm.

Well it wasn't volatility.

Uh huh.

Yeah.

Oh.

Email with Alibaba, So sure long I sound, a little kids Townhall Congress tarnish your whole naturals since you bought <unk>.

Thanks <unk>.

Eagle life.

It sounds like I'm sure all of them.

Naturally that means it's all true John Cool cool, Yeah don't cookie shingles.

But you cannot have mushy glut gentlemen.

Oh sure.

Mhm and all.

So call that you don't see problems yes.

Oh by Susan electrical solar chosen a tool kit I should clean G box.

She social that.

Thanks, Sheila so shanshan Xu <unk> Hello.

Thank you households, that's really challenging.

Two of the hydro.

So she'll call D K and K.

K a N D ops.

You also see some apple shingles, Tobey Heiko the gamma Delta.

T D.

Yep.

Go ahead.

Okay and at the bottom of that in this first page pictures in the vast beautiful new manufacturing facilities looked exactly like can these new haiku and 100000 vehicles as Sony what was missing just a few things at the center bar Gate, which normally would have a large ground sign on.

On that side it would show candies name with it.

She had a logo on it instead it had a brown reduction batch over those pictures.

And in the upper levels as I know that facility has.

Also the candy name and.

Uh huh.

She owned type of logos that we have is normally up there on the real well and that was also retraction patch on the picture there.

So.

And a little confusing.

Well go ahead and tell them that much right now.

So sure just yet.

G schedule for schools, and let people know Hello, I'm glad you sure are somewhat volatile gold how much else yet tons Natura <unk> syndrome.

Yeah.

Sure.

Thompson.

So he said he was there.

Sure No that's only on Dutch and Belgium Zander.

Hum.

Maybe I'll come to the Belgium, she batesville about what you'll do that know how to handle the.

Sean Carla.

Yes, you broke up.

Comes where either you got me.

Belgium, which I imagine, you'll see a woman kind of when you'll come to them.

Okay moving onto the company's profile page under company's certification to my surprise. They had a single document for download for the CE, Mark which we all know is the authorization to do business in Europe , which I had no idea they can't even have the CE Mark anyway.

It went on to say the actual document the Jyishane Kandi technologies was listed as the manufacturer on this certificate.

Also on that page are some video and VR virtual reality clips at the same facility.

That's the homepage, except this time the reductions we're not there.

Now the page clearly shows the candy in the candy logo and that same tool.

Two locations actually so after further internet search of their name I've found the second Gen <unk> website.

It's a beautiful area a portrait of candies old Gen losses, Similarly on the back.

That side of it broke down its international sales statistics.

With 70% to North America, and the rest of the detailed out to some 15 additional countries. The pages actually had this feature to it.

Retranslating each page into some 80 different languages.

This company at least currently appears to be an independent global wholesaler with long term very close ties to Kandi, finding that CE, Mark which is mandatory for Arizona is also encouraging so I'm going to have a few questions to follow read that don't fit in with your questions.

I hope that he got Oh.

Women Lasagna Tango Eagle bulk quantity of a lot to juggle all your problems, we're not going to go to Hawaii only Sofia.

The entire thing Delta in geographies, where she created by auto.

Hum.

Yeah, well above what you've all come Yorktown of Belgium.

One game and I live that sure sure John Congress could be sure to keep out shop now.

I'll now high power <unk>, we are the Shang Guang times, Sheila to O'shaughnessy I'm sure that Jacqueline.

<unk>, Oh, no Jason already and I shall now searching for a number of come BOL com.

So young <unk> local L J.

Yeah, we're not so sure what that deal was that you said that Youre now Hollywood Commvault, Yeah, Rajeev Lasalle Jasper.

I'd like to hand, the phone will not.

And that's actually what you're.

Counting tenants show that Jim Hoffmann combo.

Although the demand it sounds really cool off and part of what's your cellphone.

She's on putting sushi issue, so social about baby.

Each of them, they're not south without Shaw Hello Boardwalk.

Uh huh.

I wish it was Tony restaurants, where people shop, I think I'm going to Oh Gee the knuckle.

Alcohol, they signed term sheets on.

Hum.

Industrial company or <unk>.

I'll talk to the Hudson look once you.

Well would you.

Do you want to have a pass and congress seem to be out of it.

Sure. So Tom can you tell me how that was relative but yeah I don't want to.

Okay.

What is <unk> current relationship with this company jazz call.

Or was it perhaps something like the northern groups of companies that maybe can you just looking to buy because they seem to be very proud of the candy name.

With you when you don't share our economy hotels that just got all of these are something you look once you.

Sure. So it sounds to me from Combi.

Yeah, so called <unk>, which I'm going to just go in guys local New York.

So you buy a portfolio from a black Hawk hungry. So one is is that you won't go shop.

Cool critical children come vehicles today, that's how much of a cool when she doesn't come on have we couldn't just sit on the official some county I think always here.

<unk> I'm.

I'm, a woman kind of coming to the meals. So go quicker.

Oh I see.

Yes.

Sure John Corker is a longtime customer of the company and now they would still purchased certain kinds of the ATV products from us According to the demand from the market.

We have no plans to acquire <unk> John .

Uh huh.

Okay.

Well, there's kandi has any other international wholesale relationships and what percent of candies business, you expect will be done outside the U S.

Also a question for Fred can you have any dealerships in Canada.

Manuel was that much of the competition will help working at Mizuho.

Sure I always I shouldn't say a basketball.

Neil.

We don't feel like I'm at Glacier.

Okay.

No one wishes him maybe let's take the two other people might somehow women's Josh nobody wishes shampoo Hockley salmon.

That's what his cycle.

John that was given that keep us on the problem and we have been told me.

Currently we do not have ottar wholesalers, although sometimes there are some smoke out most scaled customers, who would come to us directly and purchased certain items. That's for the wholesale plant in Canada. We are currently working on is to set up.

Wholesale channel.

Thank you.

Okay.

Everyone have noticed.

Yeah.

This particular company again, it seems to have changed.

Just over within the past year or so to really put a lot of.

Stress Sochi, Indiana, almost 240 odd.

Various products, which by the way also includes lithium batteries can be bought in bulk.

So I guess my question is is the lithium batteries candy batteries and on the other hand is.

Why are they seem to be stressing the whole front pages candy I mean, I'm I'm very happy to see that.

Yeah.

I think just focusing a lot more on candy now than they have in the past I guess is my question.

Oh, Joe when you go through that well work on top of our commercial guys Xiaomi and sanctions hunting.

Yeah toilet mountain Baidu, a good times right.

Hi, all.

Yeah sure not little one Fisher with Chicago Shanghai.

What you'll do that hunting sequels relation largely chocolate candy, hi, Neil Ginger Guang pool to grapple.

For the so she'll go into the cohort wish him luck to wash out John Yeah, The Osha Congress coming dawah condo.

With us on sequel, I pass on my Little Congo, now hold so much Oh <expletive> come with Huntington.

Some of those yet or kind of a blended.

Yeah.

Our next question comes from Francis.

Please proceed with your question.

Thank you.

In May the company entered into a consulting agreement on business growth and financial Advisory services or 1.1 million dollar contract is Saturday follow up on the arrangements they had with citic.

Citic before Covid.

For a possible spin off for listing on the Chinese exchange.

So with that with all of what kind of dogs in the Gulf, but oh.

Sadly glut Stephanie.

You bet your cylinder alcohol cool Yeah Angeles your bullshit gun, it's also agenda.

Oh gosh.

That sounds familiar when tier one car window in Miami, where he thought that kind of.

Hello Triangle Fukuda.

Oh, Okay, operator in France, with chemical management says they see anytime you answered a previous question that will come back to you. Okay sure sure just hold on and wait it.

On the line.

Yeah.

Oh, no I haven't.

Some of them.

Cause I wish it without telling anyone came out okay. Okay. So right now we're answering the last question of the previous.

A quick pervious caller now we will go through.

Ill go back to the to the question sure.

Well keep it out of my philosophy last I'm sure.

Why are you starting to go quickly into the winter it will cause them hossa woman Consequently, the sunseeker no.

No woman of time, even though you're so kudos to.

Are you a piece of it.

Hum.

Now my dog in the module Shaw a touchless system.

I'm with him with anthem, which it might be a mill Kiwi gets quicker.

Oh, sorry, there was some interruption our answer for the previous question as for the question. So first of all to.

It sounds cool.

Our long term customers and they also would like to promote our products. That's why we see such information on their website.

We do not support any lithium ion cells to judge them quicker.

Thank you.

[noise] fill out what we can.

We assumed the question Scott.

Hi, Francis I think you can proceed with your question one more time.

Agreement on business growth and financial advisory services for $1.1 million.

Is this a follow up with Citic.

The agreement they had before COVID-19 to possibly do a spin off or take part of the.

At least part of the company on the Star exchange and in China.

Tagging one gives you Glen as usual with me.

She embodies the cool pool yet.

Got you got you should want what sounds to thousands of California Shuffle Shane.

I E G chairwoman, good tools and changing the Guangzhou shoe buckles equal thin.

Naturally I shall sugar and including <unk> and <unk>.

So we're the ones.

Okay.

Since I joined Yeti in the Mega Programmes.

Congrats.

Sure.

Tom Toby issues that maybe you have some becomes law.

Ed.

And that will be done pencil.

What's the mega signs of slowdown there.

You don't find gimmick.

Okay.

Okay.

This is Nathan.

Okay.

Yeah sure.

So as for the consulting agreement.

It's not related to our potential listing in China, China market with the Citic are indeed is for our separate plan to at our U S subsidiary as Euro sport to explore the possibility to be separately listed in the U S. Mainboard.

Uh huh.

That's fair Ian Thank you for your observation.

Okay.

And.

Another question for for you Mr. Lim.

When can be sold at Xinhua facilities.

A couple of years ago as I recall, there was a large part of the compensation for that at over 70 million I think was a tax benefit.

Potential tax benefit on our on our profits and I think it was for eight years have we ever been able to take advantage of that until now and.

Do you know that we are profitable.

Would that tax benefit really come into play and could we recoup a large part of that in the future.

What do you want to be sure. When you guys go about women's that you can see a woman the dose yet.

It's incredible.

Hum.

Social need question Vishal.

Gotcha.

You know what.

What do you guys I'm sure are well now with a lot.

You can see the same thing.

So thank God.

Bigger benefit Sakai senior claim that.

Sure sure I don't find one right right, Yeah, I think that all three wheeler knowledge on $2 in badger's share it might be useful in Philadelphia the city.

So the social debt.

These benefits are for one golf onshore Gulf, but unless you want to live in Yorkshire.

Okay.

You may ask.

So youre going out today shows that women are calling for jokes regimens.

I would say specific gene oftentimes Chevron young <unk>.

So answering credit deal.

So thank you for your question as far as the tax benefit utilization.

We believe we can utilize in the upcoming future well first of all the golf carts are currently manufactured from our high net facilities.

Ongoing.

I will try to expand our production in Shanghai as well, but since we have those minutes net loss carry forward that we can able to utilize so yeah. That's fair questions. We can utilize those tax benefit in the upcoming future.

Great. Thank you very much thank you.

And congratulations.

Thank you.

There are no further questions at this time I would now like to turn the floor back over to Keith for closing comments.

Thank you.

Thank you again for attending today's conference call. If you have any more questions feel free to contact us or contact our IR agency Bouchard, we look forward to updating you on our next earnings call. This concludes our call for today you may now all disconnect Goodbye.

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