Q4 2023 Kandi Technologies Group Inc Earnings Call
Operator: Greetings and welcome to the Kandi Technologies Fiscal Year 2023 Financial Results Call. At this time, all participants are in a listen-only mode.
Greetings and welcome to the Kandi technologies fiscal year 2023 financial results call.
At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
Operator: A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone key. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Kewa Luo, Investor Relations Manager for Kandi Technologies. Thank you.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded.
Now I'd like to turn the conference over to your host keyword Luo Investor Relations manager for Kandi technologies. Thank you you may begin.
Thank you Melissa Hello, everyone. Thank you all for joining us on today's conference call to discuss candies result for the full year 2023 yesterday, we issued a press release covering the results you can find the press release on the company's website.
Kewa Luo: Thank you all for joining us on today's conference call to discuss Kandi's results for the full year 2023. Yesterday, we issued a press release covering the results. You can find the press release on the company's website, as well as from the Newswire service. On the call with me today are Mr. Xiaoming Hu, Chairman of the Board, Dr. Xueqin Dong, Chief Executive Officer, and Mr. Alan Ling, Chief Financial Officer. Dr. Dong will deliver prepared remarks in Chinese, which I will then translate.
Well as from Newswire services.
On the call with me today are Mr. Shlomi <unk> chairman of the boy doctors shaking Dahl, Chief Executive Officer, and Mr. Alan Leong, Chief Financial Officer, Dr. Don will deliver prepared remarks in Chinese, which I will then translate.
Kewa Luo: After that, we will have a Q&A session. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe-hopper provisions of the U.S. Private Security Litigation Reform Act of 1995.
After that we will have a Q&A session.
Before we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions. After U S. Private Securities Litigation Reform Act of 1995 forward looking statements involve inherent risks and uncertainties.
Kewa Luo: Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Information regarding these and other risks and uncertainties is included in the company's public filings with the SEC.
Such the company's actual results may be materially different from the X spectation expressed today.
Information regarding these and other risks and uncertainties is included in the company's public filings with the FTC the.
Kewa Luo: The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please note that, unless otherwise stated, all figures mentioned during the conference call are in U.S. dollars. With that, let me now turn the call over to our CEO, Dr. Xueqin Dong. Go ahead, Dr. Dong.
The company does not assume any obligation to update any forward looking statement, except as required under applicable.
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. Shaking Don go ahead.
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Xueqin Dong: Hello everyone, I am Kandi Tech Grp's CEO, Xueqin Dong. Welcome everyone to today's meeting. ???????2023?,????????????,??????????????????????????????? Hello, everyone.
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Hello, everyone I'm shaking down the sea of Kandi Technologies Group welcome to today's conference call looking back on the challenges of 'twenty 'twenty suites I am very proud of the success, we achieved through our strategic pivot into off road, all electric vehicles and also.
Xueqin Dong: I'm Xueqin Dong, the CEO of Kandi Technologies Group. Welcome to today's conference call. Looking back on the challenges of 2023, I am very proud of the success we achieved through our strategic pivot into off-road or electric vehicles and associated Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Grp, We have developed new products such as pure electric UTVs, pure electric mini golf carts, and launched them to the market. Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Grp, We have also expanded our cooperation with more supermarkets and retailers on the basis of strengthening cooperation with Lois. Unknown Speaker, Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Grp, Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Grp Unknown Speaker, Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Grp, Our??????????????????????????, 2023 was a landmark year for us as we developed and launched new products such as electric UTVs and electric mini golf carts.
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2023 was a landmark year for us as we developed and launched new products such as electric UTV.
Electric mini golf carts.
Xueqin Dong: We beefed up our sales channels by acquiring Northern Group and expanding collaboration with Lowe's. At Lowe's, we grew our partnership by partnering more of their super centers and dealers, thereby expanding our coverage of North America. In 2023, we returned to profitability with revenue hitting its highest level in the past three years. Gross profit increased by 112% to $40.4 million, and we achieved a net profit of $1.7 million, a huge swing from the $12.9 million net loss in 2022. These achievements lay a solid foundation for our future growth, strengthening our belief in the potential of the electric off-road vehicle market. In 2024, we will invest more in the development of electric non-motor vehicle products that are more competitive.
We beefed up our sales channels by our client Northern group and expanding collaboration with low Allo. We grew our partnership by partnering more of their super centers and dealers there.
Thereby extending our coverage of North America.
In 2000, Twenty's Lee, we returned to profitability with revenue hitting its highest level of the past three years gross profit increased by 112% to 44 million and.
And we achieved a net profit of $1 7 million a huge swing from the $12 9 million net loss in 2022.
These achievements laid a solid foundation for our future growth strengthening our belief in the potential of the electric off road vehicle market.
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Xueqin Dong: This strategy not only shows our confidence in the company's growth in the future but also shows our firm commitment to improving shareholding value. Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, and continue to work hard to create greater value for customers and shareholders. ,,, As we look to 2024, our enhanced focus on research and development will enable us to introduce more competitive all-electric off-road vehicle products.
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As we look to 'twenty 'twenty four our enhanced focus on research and development will enable us to introduce more competitive all electric off road vehicle product.
These strategies shows our confidence in the company's future growth and it is a pledge to boost shareholder value by addressing the growing demand for electrified and off road vehicles. We are confident we can achieve significant growth in 'twenty 'twenty, four which can translate into.
Greater value for our customers and shareholders, we hope our strategic shifts are understood and supported by you our shareholders.
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Xueqin Dong: This strategy shows our confidence in the company's future growth and is a pledge to boost shareholder value. By addressing the growing demand for electrified off-road vehicles, we are confident we can achieve significant growth in 2024, which can translate into greater value for our customers and shareholders. We hope our strategic shifts are understood and supported by you, our shareholders. Now, we will start the Q&A session. Chairman Hu Xiaoming and I will answer your questions. Mr. Kewa and Mr. Lim will translate the questions into English. Please start.
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Please go ahead and ask your question.
Operator, Please go ahead.
Thank you.
At this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
You May press star two if you'd like to remove your question from the queue.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again its star one to ask a question one moment, while we poll for questions.
Xueqin Dong: Now we will move on to the Q&A session. Chairman Hu, Xiaoming, and I will answer your questions, and Ms. Kewa and Mr. Alan Lin will provide translation for English questions. Please go ahead and ask your questions. Operator, please go ahead. Thank you.
Thank you. Our first question comes from the line of Mike Pfeffer with Oppenheimer <unk> Company. Please proceed with your question.
Good morning.
Couple of quick comments and then a couple of quick questions. Please in January according to the Candy American Facebook page, Mr who came to the U S and with senior management and first visited the PGA Expo, where candy got Coleman Loews and its first 10000 golf cart orders in 2022 Candy was honored.
Operator: At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.
By the Expos and innovator with its patented expandable many cart by the N B C golf channel afterwards, he went on to meet with Lowe's home office management to plant candies expansion for this year and beyond maybe can just translate that quickly. Please.
Operator: You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Once again, it's star one to ask a question. One moment while we pull for questions. Thank you.
Sure.
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Michael Pfeffer: Our first question comes from the line of Mike Pfeffer with Oppenheimer and Company. Please proceed with your question. Good morning.
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Kewa Luo: A couple quick comments and then a couple quick questions, please. In January, according to the Kandi American Facebook page, Mr. Hu came to the U.S. with senior management and first visited the PGA Expo, where Kandi got Coleman Lowe's and its first 10,000 golf cart orders in 2022. Kandi was honored by the Expo as an innovator with its patented expandable mini cart by the NBC Golf Channel. Afterward, he went on to meet with Lowe's home office management to plan his company's expansion for this year and beyond. Maybe you could just translate that quickly.
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Thank you a few weeks later another message came up on the Facebook page announcing that Kandi was invited to present. Its current line of golf carts Cowboy cowboy side by side E bikes et cetera at Lowe's annual all hands manager meeting from the looks of the video on our Facebook page. It appeared that Kandi was.
Kewa Luo: According to Kandi's Facebook page, in January, Mr. Hu came to the U.S. with executives to attend the TGA show. Later, he met with Lowe's headquarters to discuss the future expansion of Kandi's plans. Thank you.
Given the largest and prime location in the display hall and from pictures was inundated by Lowe's managers not surprising since Kandi has the highest priced products sold by Lowe's of managers bonuses are based on the dollar volume of sales of their store here.
Kewa Luo: A few weeks later, another message came up on the Facebook page announcing that Kandi was invited to present its current line of golf carts, Cowboy Side-by-Side, e-bikes, etc., at Lowe's annual All Hands Manager meeting. From the looks of the video on the Facebook page, it appeared that Kandi was given the largest and prime location in the display hall, and from pictures, she was inundated by Lowe's managers. Not surprising since Kandi has the highest-priced products sold by Lowe's, and managers' bonuses are based on the dollar volume of sales at their store. Here are a few questions.
Here are a few questions, maybe just translate that and I'll go to the questions quickly. Thank you.
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Kewa Luo: After a few weeks, I saw another message on the same Facebook page which said that Kandi was invited to show off his current golf cart, cowboy hat, branded seats, electric bicycles, etc., at Lowe's annual general manager meeting. From the Facebook page, I saw that Kandi was given the best and largest position in the exhibition and was very well received by Lowe's executives. This is not surprising because Kandi's Lowe's products are the most expensive, and the awards are based on their sales in the store. So I have the following questions.
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So it slows us now work with candy for over a year can Mr. Hu give us any color on just how big this lowe's relationship can evolve.
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Xiaoming Hu: Since Lowe's has now worked with Kandi for over a year, can Mr. Hu give us any color on just how big this Lowe's relationship can evolve? Since we have been working with Lowe's for more than a year, can you provide us with more detailed information about the relationship between you and Lowe's? Transcribed by https://otter.ai. This fully shows that we have had a very pleasant year of cooperation with Lois.
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We are glad that our products are popular among the customers of Loews, there's those that are corporations.
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Cooperation between the two parties continued to expand and deepen.
Top off the Gulf Coast that we're currently selling there'll be other products will continue to be sold in the retail stores of lows. We believe that our cooperation with flows will continue to expand and deepen.
Xiaoming Hu: I think that with the deepening cooperation between our two sides, in addition to golf and football, our other products will continue to be sold in all major markets of NOES. We believe that our cooperation with Lloyd's will continue to grow. We are glad that our products are popular among Lowe's customers.
Thank you as compared to Walmart, which at least for now does not seem to stock the cards locally low seems to have a rotating inventory in the store various candy products. What are the payment terms that kandi has with the various changed primary Lowe's and Walmart.
Xiaoming Hu: It shows that our cooperation with Lowe's for more than a, you know, past year has been great. As our cooperation between the two parties continues to expand and deepen, on top of the golf carts that we are currently selling, there will be other products that will continue to be sold in the retail stores of Lowe's. We believe that our cooperation with Lowe's will continue to expand and deepen. Thank you. As compared to Walmart, which, at least for now, does not seem to stock the carts locally, Lowe's seems to have a rotating inventory in the store of various Kandi products.
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Please note that the payment terms, we have with Lowe's at Walmart.
Superstores are confidential, but we all we can say is or the payment terms are strictly following the terms agreed upon by both parties.
Unknown Interpreter: What are the payment terms that Kandi has with the various chains, primarily Lowe's and Walmart? Walmart, at least from what I can see, is not promoting or recommending our cars in the local inventory. On the other hand, Lowe's seems to have all kinds of Kandi products in the store, and there is a rich inventory.
Okay, how many more superstore changed over and above the five currently know does Mr. Hu think kandi will add over the next 12 months and how many outlets are involved.
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Unknown Interpreter: So, Kandi, what is the relationship between your major chain stores, mainly Lowe's and Walmart, and their payment terms? Unknown Interpreter, Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group Please note that the payment terms we have with Lowe's or Walmart and some other Superstores are confidential, but what we can say is Okay.
Okay.
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So far this year.
On top of what we are working with the lowest superstores.
Xiaoming Hu: How many more SuperStore chains, over and above the five we currently know, does Mr. Hu think Kandi will add over the next 12 months, and how many outlets are involved? In addition to the five supermarkets that we already know, Mr. Hu, how many stores will be added in the next 12 months? How many stores will be involved? Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group So for this year, on top of what we are working with the lowest superstores, we have now added cooperation with more than a dozen or so retail chains with different scales. Currently, we are working on child sales in those superstores. In addition, on top of the cooperation of the supermarkets, we are working with the Partnerships due to 2023. And in this upcoming 2024, we are trying to work with more than 1000 builders. Thanks.
Now at the cooperation with more than a dozen or.
So the retail chain with different scales.
Currently we are working on the child sells in those superstores.
In addition.
The cooperation of the supermarket, we are working with the deal last year with more than 300.
Partnerships during the 2023 and in this upcoming 2020 for we're trying to work with more than 1000 dealerships in the U S market.
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Thanks, It appears that a few states, including Texas have not yet approved the candy cowboy side by side for sale can you tell us what the holdup is and when it may be released.
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Xiaoming Hu: It appears that a few states, including Texas, have not yet approved the Kandi Cowboy side-by-side for sale. Can you tell us what the holdup is and when it may be released? It seems that some states in Texas have not approved the sale of Kandi's Cowboy. Can you tell us why this delay?
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The first plant with our partners and yourself working accordingly.
Currently our cowboy products. He is selling based on what's selling plan. Thank.
Thank you.
Last question. Thank you in 2023, it appears that candy sales of the Big box stores were mainly golf carts, what new products are being introduced this year and then next year. Thank you.
Xiaoming Hu: When will it be on the market????? Regarding the sales plans, like what kind of product or the timeline, it's based on the sales plan with our partners, and it's working accordingly. Currently, our corporate products are based on our sales plan. Last question. Thank you.
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Xiaoming Hu: In 2023, it appears that candy sales at the big box stores will be mainly golf carts. What new products are being introduced this year and then next year? Thank you. My last question is that, in 2023, Kandi will mainly sell golf carts in large-scale chain stores. What new products will be launched this year and next year? Unknown Speaker 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, Unknown Interpreter, Xiaoming Hu, Kandi Tech Group, So on top of the golf courts, we'll gradually launch different other highly competitive electric off-road vehicle series. On top of that, we're going to launch the lithium batteries for different kinds of usage. I'm over.
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Thank you.
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Thank you. Our next question comes from the line of Arthur Porcari with corporate strategies. Please proceed with your question.
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The last bullish November conference call can be traded at.
$3.40 a share.
At that time as a premium towards reported $2.89 per share in cash and Cds.
A few days ago, it traded below $2 and 36, just above its 52 week low.
So bullish based on the Cfo's response.
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Report regarding the announced purchase.
And the second 75000 square foot distribution and assembly facility in Garland, Texas, which increased the total capacity to 125000 square feet.
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One of your people say Candy American tends to drive growth through geographic penetration across the U S. With this and additional distribution centers. This will likely be cheetah fueling demand and our timing currently effective matter that was a quote out of that so let me follow up a little bit here.
Arthur Porcari: We're planning to develop an electric water supply. Thank you. Our next question comes from the line of Arthur Porcari with Corporate Strategies. Please proceed with your question. Okay, can you hear me?
Shareholder follow up question went on to ask.
Is it safe to assume with this added capacity reached over the next two years the revenues could approach 500 million.
And that was a question see if those response was quote the purpose of purchasing the new warehousing and Garland, Texas is to increase our sales capacity or sales in the state will definitely increase and a more significant manner go ahead and pass that onto them right now.
Arthur Porcari: Yes, I can hear you. All right, at the last bullish November conference call, Kandi, $3.40 a share. At that time, it was a premium to its reported $2.89 per share in cash and CD, transcribed by https://otter.ai, just above its 52-week low. I said bullish based on the CFO's response in that question last report regarding the announced purchase of Kandi's second 75,000 square foot distribution assembly facility in Garland, Texas, which increased the total capacity to 125,000 square feet. In the PR that announced that one of your people said Kandi America intends to drive growth through geographic penetration across the US with this and additional distribution centers. This will likely be key to fueling demand in a timely and effective manner.
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Arthur Porcari: The shareholder follow-up question went on to ask, It's safe to assume that with this added capacity reached over the next two years, revenues could approach $500 million. And that was the question. The CFO's response was, quote, "the purpose of purchasing the new warehousing in Garland, Texas, is to increase our sales capacity. Our sales in the state will definitely increase in a more significant manner." Go ahead and pass that on to them. Okay, in the last meeting, the third meeting in November, this meeting was very much watched. At that time, because Kandi's share price was $3.40 per share, compared to the reported $2.89 per share cash, and the deposit price was about $0.50 per share, a few days ago, the share price fell below $2.30 per share, and it's higher than the lowest point in 52 states.
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On to say this is a quote out of it our goal of sales target is estimated to be close to 500 million within the next two to three years. He also said quote and its estimated that the gross profit margins for the whole year of 2023 would be above 30%.
Even close to achieving these targets the CAGR.
The annual growth rate with the over 80%.
Our gross profit around $1 75, a share.
In that year, which I assume is that he's talking about is a 26, obviously with the stock down 40% since the last conference call. It 85% below its all time high not only is the market not believing management, it's betting on a negative growth over the next few years. This.
Arthur Porcari: The reason why I say it's a rise is based on the answer of the Chief Financial Officer, CFO, to a question. This question is about the company's announcement of the purchase of a new 75,000-square-meter distribution and assembly facility in the city of Garland, Texas. In the press release, he said that through this acquisition, Kandi is planning to promote growth through this distribution center and more distribution centers throughout the United States. This will be the key to timely and effective supply and demand. The shareholder then asked, through the interpretation of the content in the news, can we assume that in the next two years, the company will achieve an income of nearly $500 million? Is this feasible?
This is despite the company announcing a $30 million share buyback right. After the last conference call.
I have a few questions to follow up but just say that to them first.
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Arthur Porcari: The CFO's answer was, the purpose of the purchase of a new warehouse in Garland, Texas, was to increase our sales capacity. Xiaoming Hu, Kandau Mark, Jehn Lim, Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, Go ahead. Okay, he went on to say this is a quote out of it, our goal of sales targets is estimated to be close to 500 million within the next two to three years. He also said that it is estimated that the gross profit margins for the whole year 2023 would be above 30%, which is even close to achieving these targets. The CAGR compound annual growth rate would be over 80%, and gross profit would be around $1.75 a share in that year, which I assume that he's talking about. 26
And she's on who shopped with Yahoo doesn't Doug Johnson, Matthey Allah passenger and Mr. Shan Shan Li Nishu can go there and you should not be allowed I think Apache or no. You just you lost your trial.
Bookings for Celgene guanine hundreds of Utah, IGN 90 assay and whether that's an issue she too.
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Oh go ahead.
Okay.
Okay.
Do you think maybe the major price decline could have something to do with no press releases and over four months and when 10 million years put out over 40, a year for the past 10 years.
Oh yeah.
Yeah.
Yeah.
That's what I can tell from enemy.
Okay Brian.
Let's do one question takes time, okay. Okay.
Good morning, ladies and gentlemen.
What's your broker and do some cool things like watches jewelry and Nissan's machine language.
You may be galvani in Ohio, Indiana sequel, popular Chocolate Fisheries Commission costs.
Uh huh.
Arthur Porcari: Obviously, with the stock down 40% since the last conference call and 85% below its all-time high, not only is the market not believing management, but it's betting on negative growth over the next few years. This is despite the company announcing a $30 million share buyback right after the last conference call. I have a few questions to follow up on and just say that. Translating what she just said, the CFO said that the expected sales target will be close to $500 million in two years, and the annual gross profit will exceed 30%. If the target is close to what the CFO said, that is to say, the annual growth rate will exceed 80%, and then the gross profit will reach $1.75.
How much in annualized yoga woman.
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So short answer that sounds a little to that.
I will say that you know what when he or she put on genzyme.
Josh I'm not sure I need oxygen.
We have been through this strategic shift in the last two years our debt costs.
Cosmo uncertainties right.
That's why we stick with a more conservative approach of the P O S.
Our performance continues to grow and become more steady maybe well definitely increased our P O avid.
Well, that's quite obvious with the stock being down because you're not doing any effort to get public relations out I think that's very bad.
Stocks need to be promoted it its not by management by analysts or somebody right. Let me move on.
This magazine is still stand by this target of 500 million in sales and 30% gross margins.
Over the next two to even three years.
With social license yet.
Arthur Porcari: But it is obvious that the stock price has fallen 40% since the last conference, and it has fallen by 85% from the highest point in history. That is to say, the market... Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, Um, go ahead.
Ladies and gentlemen, I actually came back with allergies are guilty of Nash and shifting almost all Calder Nacho coucal, Shandong and Shanxi, Archie Shan Shan Shan shootout and tweets on that then.
Yeah sure.
Since you mentioned that those nails or not it's what I tell you that.
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Arthur Porcari: Okay. Do you think maybe the major price decline could have something to do with no press releases in over four months, and when Kandi in the past has put out over 40 a year for the past, Unknown Speaker, Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, Let's make it two points. Let's do one question at
Yeah.
Mr Shannon Greene.
Korea C well congratulations.
Yeah, well, it's Joshua.
Possibly from that.
During the fiscal year, two Chinese 23, Oh, we achieve a turnaround from net loss to net profit. So we are convinced that the sales and profit we will continue to increase significantly in the next two to three years. Thank you.
Yeah.
So youre not standing by that 500 number, but that's okay I guess.
Arthur Porcari: Do you think that the current situation is related to the fact that the company has not released any news in the past four months? In comparison, in previous years, the company has released more than 40 pieces of news every year. Unknown Speaker 0, Unknown Speaker 00191 00142 00143 00144 00145 00146 00147 00148 00149 001410 001411 001412 001413 001414 001415 001416 001417 001418 001419 001420 001422 001423 001444 001445 001446 001447 001448 001448 001449 Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Grp, Unknown Speaker 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, We have been through the strategic shift in the last two years that caused certain uncertainties. That's why we stick with a more conservative approach of the PR effort.
Why do you not report.
non-GAAP numbers as well if you were to report.
Almost about $11 million.
Cash charges for stock based compensation that would have added 12.
At least for analysts to look at things like looking at that number because it's a one time item its not its a noncash charge.
This particular case, we would've earned 12 or 13 cents for the year.
If it was any other cai.
The non-GAAP.
Oh constellation all Fujian was you said non-GAAP of mail from budget question I, just want to touch on shortly.
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Right.
Thanks, John.
I'm, sorry, I've been why our team with Ainsworth I suppose I'm coming to you.
Hi, Petros or slow them away from us in our books.
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Uh huh.
Non capital for countries that make what pricing trends are they you don't I.
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Arthur Porcari: As our performance continues to grow and become more steady, we will definitely increase the PR effort. Well, it's quite obvious with the stock being down that you're not doing any effort to get public relations out. I think that's very bad; stocks need to be promoted. It's not by management, by analysts, or somebody. But let me move on.
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Gotcha.
And I mean, when you go too crazy out there goes the micro controller.
Uh huh.
So it was in a woman's best meal.
non-GAAP.
Peter if I answer that would be the Honda well men's seawell ends out J D. J T to the FCC that you also let us film and a surgery. They wanted today it's at Street.
Arthur Porcari: Does management still stand by the target of $500 million in sales and 30% gross margin over the next two to even three years? I want to say that although management thinks so, the stock market performance is very bad now. The stock market needs to be promoted and promoted. We need to...
<unk> Geelong.
So that's how about that so which is a non-GAAP.
Hello, John Doe lunch and took way.
Yeah phase low grade Halo pharma sets is that sort of sits almost.
Yeah, that'd be since you want but I saw that Jim just talked about what was wrong.
Xiaoming Hu: Unknown Interpreter, Xiaoming Hu, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group In 2023, we will achieve a year-on-year return on investment. So we are even more confident that in the next two to three years, our sales and profits will get a big boost. During the fiscal year 2020-23, we achieved a turnaround from a net loss to a net profit.
Oh my.
Okay. Okay. That's okay I'm glad I finally, if I may.
So what we're seeing right now is a fruit GAAP disclosure, we'd stick with that complying with the SEC disclosure regulations and requirements.
So basically we would like to present, a accurate presentation to investors without too much confusion and secondly, it's always based on the recommendation from our auditors.
Our GAAP comply figures.
We're trying to take a more conservative approach to present.
Xiaoming Hu: So we are convinced that sales and profit will continue to increase significantly in the next two to four years. So you're not standing by that 500 number, but that's okay, I guess. Why do you not report?
The exact correct amount do you have to invest isn't where go latest but what you manage that we've made taking into consideration in the future. Thank.
Thank you.
Okay.
Wow.
Okay.
Yeah, yeah, well migrate towards your target.
Sure.
So we're kind of down a touch a lot of things you want a job.
Uh huh.
Yeah.
Already for my last question here.
Yes are they signing something.
Arthur Porcari: non-GAAP numbers as well. If you were to report, you have, you know, almost $11 million in non-cash charges for stock-based compensation, that would have added $12 billion. At least for analysts to look at, they like looking at that number because it's a one-time item, it's a non-cash charge, and in this particular case, we would have earned 12 or 13 cents for the year.
Okay well.
First a comment to that as well again, you know that.
So about 12 cents a share in earnings were any other firm out there would report both sets of numbers.
Analysts, particularly in tech related companies don't even care about.
GAAP anymore, when they put out their research reports and look at the non-GAAP because they know that.
Companies are putting up shares all the time.
So there I mean as far as stock based compensation as a lot of times, they don't even get exercised.
Arthur Porcari: If it was any other company, it would have reported the non-GAAP data. Why did the company not disclose the non-GAAP data? Because the company had a one-time, non-limited expenditure of about 11 million yuan. And if you do this, you can...
So again it cost us about <unk>.
Probably 14 to 15 cents and non-GAAP income for the year instead of just show in Tucson, and I can promise you the stock would not be trading 90 under cash of 60.
Xueqin Dong: Unknown Speaker, Chinese Translator, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, I asked him to say it again, but I still don't understand what he said. Why don't we disclose this non-GAF? What does non-GAF mean? Non-GAF does not comply with U.S. Accounting Standards.
70 cents under cash and about $3 a share in cash in the bank now.
Everything else, it's been growing and I see you also bought back my correct.
Over 700000 shares stock so far since December when you started the share buyback.
Hi, just a question what do we we have bought back 700000 shares so I think we.
Xueqin Dong: Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, Can you explain what's going on here? I will use Chinese to explain. First of all, we do not use non-GAAP disclosure methods. If there are two enemies, we try to follow the most basic SEC requirements to enhance our data. In addition, this also depends on some of the suggestions of the previous auditors. We try to completely block all the financial statements data from GAAP, the U.S. Financial Standards.
We disclosed all of those shares by backing okay.
Is that what you're trying to ask.
Yes, there are two sets of numbers and one was I mean, you didn't start buying until probably December that you announced at the last week of November.
And that shows we're about 175000 shares last year, but you also have a subsequent a veterinarian shows over half a million more shares were purchased so my question is is it have we in fact repurchased.
Somewhere between seven and 800000 shares in just the past couple of three months.
So your question was that that's the number of several hundred thousand Lee we have purchased right right.
Xueqin Dong: Non-GAAP disclosure methods are actually the company's preference. At present, we are conservative and hope to report all accurate data. Mr. Hu, do you have any comments on this? Okay, okay. So what we're doing right now is a full GAAP disclosure. We stick with complying with the SEC disclosure regulations and requirements.
That's the number that you have I just wanted to make sure you have two separate numbers. It does seem to say that in 2023, you purchased around 180000, and I guess, so far you trade it bought over a half a million at an average price of around $2 74.
Okay, Let me translate so far, especially all of English of agile country without LNG tayo good I E.
Xueqin Dong: So basically, we would like to present an accurate presentation to investors without too much confusion and, second of all, based on the recommendations from our auditors to present GAP-compliant figures. We're trying to take a more conservative approach to present the exact correct amount to all the investors and regulators, but what you mentioned, we may take into consideration in the future. I can't, I can't tell you. We can make some adjustments based on your suggestions. Co-op. Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group,... Am I ready for my last question here?
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Arthur Porcari: Okay, well, first a comment on that as well. Well, again, you know, that costs us about 12 cents a share in earnings, where any other firm out there would report both sets of numbers. Analysts, particularly in tech-related companies, don't even care about the gap anymore. When they put out their research reports, they look at the non-gap because they know that these companies are putting out shares all the time. So therefore, I mean, as far as stock-based compensation is concerned, a lot of times they don't even get extras. So again, it cost us about 14 to 15 cents in non-GAAP income for the year instead of just showing two cents. And I can promise you that the stock would not be trading at 90 cents under cash or 60. 70 cents under cash in the bank.
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Arthur Porcari: You have $3 a share in cash in the bank now, top of everything else that's been growing. And I see you also brought back to my correct, over 700,000 shares of stock so far since December when we started the share buyback. Is this a question? Have we brought back 700,000 shares? I think we... We just closed all the shares back in the K, is that what you're trying to ask? Yeah, there are two sets of numbers in it.
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Arthur Porcari: One was, I mean, you didn't start it until probably December because you announced it the last week in November, and that shows about 108 75,000 shares last year. But you also have a subsequent event there that shows over half a million more shares. So my question is, have we in fact repurchased somewhere between seven and 800,000 shares in just the past three months? So your question, whether that's the number 700,000 we have purchased, right? Right, I mean, that's the number that you have.
So it's.
Can I go down towards that number.
Hum Compostable, two mega jobs out costs with hydrogen.
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Of course.
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Good.
Hey, guys.
So as for the amount of shares we have purchased since December into our fabric to think of it that is correct is roughly 700000 shares with buyback.
Two or three months correct.
That is pretty impressive when you consider the average daily volume is a strict down to about 60 to 70000 shares a day and you can only buy 25%.
In any given day and the average daily volume, but what about insiders, we used to see insiders buying the stock at $45 a share in years that they were losing money hand over fist, we havent seen Mr. Who are Henry you or any other insider buys share the stocking two and a half years.
Arthur Porcari: I just wanted to make sure you had two separate numbers. It does seem to say that in 2023, you purchased around 18,000. And I guess so far, you've bought over a half a million at an average price of around 274. Okay, let me translate that so far.
You're doing 10 be fives with the corporation that should not restrict.
Insight.
Executive buying as well at least a starting within the window.
And schools are calling somebody that's usually the language I should say show me no tricking the illegal agenda. The jelly, yeah I'll be home for Hollywood Dashonte, let Jim I'm actually talking about Washington, but that is I shouldn't usually VTOL fish harmful to us there's always challenges I wish him all courses and Glen at home without major Society.
Unknown Interpreter: Unknown Interpreter, As of December 31st, we bought about 180,000 shares. And then, in the climate market, we saw that we had bought about 500,000 shares so far this year. So we should have bought nearly 700,000 shares now. But I want to make sure that the data shown in the two groups of 10K is correct. The total number of shares we have bought so far is about 700,000. This is the total number of shares we have bought so far Wang Lin, can you add it up and tell everyone? Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, So as for the amount of shares we have purchased since December until February, the figure we get is correct. It's roughly 700,000 shares we bought back in last year, and that is pretty impressive when you consider the average daily volume is straight down to about 60 to 70,000 shares a day, and you can only buy 25% on any given day of the average daily volume. But what about insiders?
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Okay.
Well for a management, especially at those from plc because of restrictions of the foreign currency disbursements. So it makes us more avid to to buy the shares but we definitely are we have such a plan and proceed in the future. Thank you.
But the stock to.
The stock trading at 60% below cash I can't imagine this time being any better than right now I'm worried about future unless you're just like paying higher for it.
But.
Anyway with all this cash we have now it's almost $3 a share and its gone up every quarter, which is amazing this year.
You got to make an acquisition with that you're going to buy a manufacturing facility, maybe in the U S or Mexico.
Uh huh.
Or how about just doing a straight 20 million share buyback at $3 a share just don't worry about Dutch auctions or anything else.
Right.
All of that I'm just about done.
And I'm, sorry can you repeat the last part you said.
If they are going to acquire.
Clearly U S and Mexico and O. What's after that but yeah, what I was saying no I was just saying or maybe make an acquisition with this cash may be a manufacturing or.
Arthur Porcari: We used to see insiders buying this stock at $405 a share in years that they were losing money hand over fist. We haven't seen Mr. Hu or Henry Yu or any other insider buy a share of the stock in two and a half years. And if you're doing 10b5s with the corporation, that should not restrict. Inside, you know, executive buying as well, at least it's not in within the window. If a company buys more than 700,000 shares, this is still very surprising because the current trading volume is very thin and it can only buy 25% of the market share so it's very good But I want to know why the company's management doesn't buy anymore When the company's shares were trading at $4 or $5 at that time, the management, such as Mr. Hu and Mr. Yu, would buy Now that the company's share price is so low, the company also has a 10-to-5 plan and it won't affect the company's management to buy Why didn't Mr. Hu and other executives buy back?
Maybe.
Other company or.
Actual tender Goodbye I mean, there's no better no wonder it's nowhere more undervalued stock in your own right. Now you are trading at a third of book value and you're trading like I said 80 cents below cashing. The bank just go out and make a $20 share tender for I'm, sorry, 20 million share tender for $3 a share I doubt you'll get anything.
I wanted to meet it but at least it'll wake up the market.
I'm not sure I'm not sure they're going to deal with some of the same thing I said comes in I think we'll probably see something on the Bates equal and Tenda. She allowed young remain yeah and the Shenzhen.
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Xiaoming Hu: China has been managing foreign exchange for many years. We are now trying to buy it, but the RMB is not going out. We are still trying to do this. Well, for management, especially those from PLC, because of the restrictions on foreign currency.
So you can see how much healthier.
Well take a woman total annuity.
Xiaoming Hu: Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, But the stock trading 60 simple low cash, I can't imagine the time being any better than right now than worrying about the future, unless you just like paying more. But Anyway, with all this cash we have now, it's almost $3 a share, and it's gone up every quarter, which is amazing, but you're gonna make an acquisition with that. You're gonna buy a manufacturing facility maybe in the US or Mexico, or how about just doing a straight 20 million share buyback at $3 a share? Just don't worry about Dutch auctions or anything else. Some of that I'm just about done.
Yeah, Yeah yeah.
Driving to do work on it and coding.
Considering the plan for any possible acquisitions are the facilities setup and as for the share buyback Yeah, We will I got it.
Thank you.
But that didn't really answered my question, but.
Let's just face it accelerated.
You're talking about maybe.
And that facility in this hemisphere is that perhaps what he was saying.
Mexico.
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Arthur Porcari: I'm sorry, can you repeat the last part? You said if we were going to acquire any facility in the US and Mexico and what's after that? Yeah, what I was saying, no, what I was just saying, or maybe make an acquisition with this cash, maybe a manufacturing facility, you know, or maybe... by another company or do an actual tender to buy. I mean, there's no better move on.
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Yeah.
Yeah, as we mentioned we had.
Really seriously considering such plan.
Considering there are some other factors like from the pause it go the economy.
We will definitely take those all into consideration and if their third a development.
Arthur Porcari: There's no more undervalued stock than your own right now. You're trading it, you know, a third of book value. You're trading, like I said, 80 cents below cash in the bank. Just go out and make a $20 a share tender for, I'm sorry, a 20 million share tender for $3 a share. I doubt you'll get anything.
Timely disclose to the public.
Okay.
It might be a surprise.
Last question over here.
Uh huh.
Oh, no one of them. So we don't even know who the change there I mean all of this company is reported in press releases.
As Ben that rural King and PD in Canada will have a total of about 410 locations.
Can you go down the list right now and tell us what other.
Xiaoming Hu: Want to meet it, but at least it'll wake up the market. He said that there is so much cash in the company, and Kandi's stock price is also very, very low. Now it still holds $250 million in cash, which is almost $3 per share. Would you consider buying any production facilities in the US or Mexico? Or would you directly use this cash to buy them?
Walmart Amazon.
Just it's a whole list of who we're doing business with right now.
I'm sorry, you you want us to go on the list.
Just dulles.
Again, they've only you've only put press releases out on P. D Mart and rural King a total of 410 locations, we know that you're in what Walmart, we know you're in and Oh.
Xiaoming Hu: He also said, or do one, for example, if you buy $20 million in shares for $3 per share, he said that the current stock price is so low, there is no better time than now to do this thing. This will wake up investors in the market. We are all working on it.
What's the name of that Oh.
<unk> company.
Campers world.
And we know your is that your own Amazon site, we've never seen any press releases, so average person looking at.
Let's take that you only got 400 locations, but you got $60 million in inventory.
So what other locations within the United States.
Xiaoming Hu: Yeah, we are striving to do work on it, including considering the plan for any possible acquisitions or the facilities set up, and as for the share buyback, yeah, we will work on it. Well, that didn't really answer my question, but it's just basically silly that you're talking about, maybe, buying a facility in this hemisphere. Is that perhaps what he was just saying? He said you didn't answer my question in a positive way.
Or are in the area.
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Xiaoming Hu: In the current situation, would you consider buying a production facility in the US or Mexico? Unknown Speaker, Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group As you mentioned, we are really seriously considering such a plan, considering there are some other factors like the political and the economy. We will definitely take those all into consideration, and if there are further developments, we will timely disclose them to the public. That might be a surprise. One last question. I don't know one of them, so we don't even know who the chains are.
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Xiaoming Hu: I mean, all the company has reported in its press release has been at World King and Peavey in Canada. We have a total of about 410 locations. Can you go down the list right now and tell us what the others are, Walmart, Amazon, so just a whole list of who we're doing business with right now. I'm sorry, do you want us to go to the list of? Just tell us who, again. You've only put press releases out on P.V.
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Arthur Porcari: Mart and Rural King, a total of 410 locations. We know that you're in Walmart. We know you're in a in a. Marcus Limones's company, Camper's World, and we know you've got your own Amazon site. We've never seen any press releases, so the average person looking at it would think that, you know, you only have 400 locations, but you got $60 million in inventory. So what other locations do you have within the United States? Or in the area, or close by?
Okay.
Oh, well I noticed that you would like to know exactly how many retail doors, we have exposure to its hard to.
Two to confirm because.
What we can confirm is how many.
Companies like the company made us all comedy or the retail changed what can wait, but we are working with over a dozen of those mega store companies in the Mega chain, although without change in different scales, but then each company they have.
Our number is off the retail stores that not all of them necessarily with all products. So I guess, it's easier for us to disclose the number of partners, we have working with and stuff that retail is still number two.
Kewa Luo: He asked if we could list how many stores we have in the U.S. According to the news, we have a partnership with Walmart, Rural King, Campus World, and Amazon. We mentioned Amazon online, but we didn't see it.
To give a more accurate figures to the public.
Besides so currently we're working with over 300 dealerships in the U S market, we expect to expand our exposure to over 1000 of those channels.
Xueqin Dong: But we have about 600 million in storage. It's hard to connect the numbers to the points of our partnership. Can you tell us how many stores we have in the U.S. and how many stores are cooperating to sell our products? Dongpo, can you answer how many stores we have? Because there are two stores here.
The older ships in 2024.
We expect that the sales will be in the volume.
Continuing to prove improve this year.
That's what we can tell you for this for that for that plan up to other episodes.
Xueqin Dong: One is... For example, we are cooperating with Lost and Costco because the number of stores they have is the number of stores that sell our cars. We can't count them for now, but we are now cooperating with more than 10 supermarkets. Another one is that Lost has a big head.
Okay. That's.
Pretty much answered my question. So right now I think I named Fives, and you said Youre working with 12.
So.
Maybe maybe they should explain why they don't want to give up the names and press releases.
Xueqin Dong: Then these... Belen, Costco, these have already started to sell. So how many stores do they have? Because their stores, for example, have more than 1,800 stores. Then there are thousands and hundreds of other stores. We haven't added how many stores yet. But this year we will continue to...
I understand that.
Against it but to gift, giving shareholders. A reason why you don't put the names out.
Oh, well I cant you come along with that associated social and I think that that's what a.
Oh, well that's all for now.
And then you guys won a.
Sure Yeah, no tertiary issue young guys young tall shaft boot hurdles that she'd have that cheese all of them yet.
Women's yoga I'm not sure exactly going back we don't source at Houston, where people just see how the Chihuahua.
Xueqin Dong: Here in Jinxiaoxiang, we used to have more than 300 stores. This year, we will have more than 1,000 stores. So starting in March, shipping will be very tight. In the first 10 days, we shipped 400 to 500 cars. As the weather gets warmer, our inventory will soon be depleted.
She said that opinion a languishes.
Okay you guys in my comments is very Thiago power call are Tom called out amongst the top okay. So shull.
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Yeah.
Yes.
Well see we are working with those.
Kewa Luo: Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, Well, I noticed that you would like to know exactly how many of the retail stores we have exposure to. It's hard to confirm because what we can confirm is how many of the companies, like the megastore company or the retail chains we are working with. We are working with over a dozen of those megastore companies and retail chains at different scales, a number of retail stores that not all of them necessarily will sell our products. So I guess it's easier for us to disclose the number of the partners we have working with instead of the retail store number to give more accurate figures to the public.
Different types of debt.
Super stores and the retail chains.
Apart from the five that you have.
From the public information the rest actually of doing.
The trial is that with all of our products. That's why it's not 100% and life finalized yet we are still working.
Working on that.
The terms in that sales plan.
You know I'm I'm I'm. Both parties are we will disclose more information when it's all finalized.
Okay.
I didn't hear you say you got yoga.
And you can also say do you want me you might go with the rollout how quickly you issue them and pricing.
Got it.
On top of that there aren't down there got you.
No wonder woman.
Harmony between women's opening fall blending of Aqua Buddha, well, you got some fathers seem to well moving down costs without going back from April do you found me a mega Mega Apocope mutual.
So a woman things like towards the formula going forward.
Right.
We will let you add more color that you know as you may know just like what would have been been through it those are the SaaS form with lowes as previous material, but then.
Kewa Luo: Besides, currently, we're working with over 300 dealerships in the U.S. market. We expect to expand our exposure to over a thousand of those channels to more dealerships in 2024. We expect that sales and volume will continue to improve this year, so that's what we can tell you about the plan for the day. Okay, that pretty much answered my question. So right now, I think I've named five, and you said you're working with 12.
We need to have their consent for.
For the public information disclosure, but then many of those thoughts maybe day decline so because they're working on their own sales plan.
So you know that this is a confidential at the end then that's how it works and it because it was so we have to.
Get the consent before we can give our information even though we want to.
You have to stick with the no all of that at times. If both parties are working on that we try to really small information in the future and trust US we are working on on that collaboration.
Arthur Porcari: Maybe they should explain why they don't want to give up the names in the press release. I understand that. I'm not holding it against you, but give the shareholders a reason why you don't put the names in. I can only see 5 names of the partners you just mentioned. You just said you had 12 partners.
That's when you'll come back to you.
I mean is that a pretty narrow American man, Oh man, you buy them I'm Gonna and got Senate almost you can reduce your copper which England.
Yeah. So your concrete, though and you should be maybe you don't get hung up on a woman thing hasn't been going as you may recall about a year longer shelf life. So it took a significant current color.
Okay.
Xueqin Dong: Maybe you have your own reason for not disclosing the names of the other 7 partners. Can you tell us the real reason for not disclosing the names of the other 7 partners? That is what I should say.
And besides even though with enter the agreement of ourselves with those parties.
It takes months for them to to finalize and go through the legal and other department before the information becomes public so there'll be a time lag so help me understand that.
Xueqin Dong: We have already negotiated with 12 companies. After the negotiations, we gradually started to sell our products. We will continue to develop this year. Now all the companies have negotiated and will sell our products. We have already started to sell them. I can't tell you the specific name in English.
No.
100% agreement with it that's what I was hoping you were going to say we understand.
The only ones we have like I said, we had to find out on our own those doing individual investigation.
In the past, but if they don't want to say, who there or why can't we do something and just put out some on the website. For example, just put on there is total number of change.
Xueqin Dong: Well, see, we are working with different types of superstores and retail chains. And apart from the five that you have found out from public information, the rest are actually doing trial sales of our products. That's why it's not 100% finalized yet.
Namely changes put total number of change or the total number of stores.
There have been increased to a certain level, just something like that but anyway.
I think you're doing a great great job with Lowe's at all you're doing a terrible job.
Getting the stock information out it's got to be an ultimate embarrassment, you've been trade under cash in the bank and have a book value for two years now.
Xueqin Dong: We're still working on the terms and the sales plan between both parties. We will disclose more public information when it's all finalized. Okay.
In the meantime, he added lowes and Wal Mart and at <unk>.
The market is although this is company.
Xueqin Dong: We would like to add more color there, you know, as you may know, just like what we have been through with Lowe's, the sales form with Lowe's is pretty standard, but then we need to have their consent for the public information disclosure. But then many of those stores, maybe they declined so because they are working on their own sales plan. So, you know, there is confidentiality, and that is how it works in the business world. So we have to get consent before we can give our information, even though we want to.
These are big these are big companies.
And somehow.
Can you just put up the test.
20000 vehicles made her 30000 vehicles made.
Or just generically if they play out and say, we're now up to 12.
<unk> 12 change you don't even have to name or something like that just stay in touch with the public we haven't had a press release since November.
Okay, and no new product one.
Johnny Tide does his own press releases for Kandi American, but they're dedicated to the trade journals. They don't necessarily show up on the wall.
Xueqin Dong: We have to stick with the terms of both parties. We are working on that. We will try to release more information in the future, and trust us; we are working on that collaboration. We have a problem here. We have a problem here. Usually, when we sign something with someone, we have to announce the news within four days. But if the other party goes through the procedure, it takes less than a month or two. If it is reviewed by the legal department, it takes less than a month or two.
Cheers.
Okay I'm done. Thank you very much it can only go up from here.
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Xueqin Dong: So this is a very awkward situation. And besides, even though we've entered into an agreement with ourselves with those parties, it would take months for them to finalize and go through the legal and other departments before all the information becomes... So there'll be a time lag, so I hope you understand that. Look, I have 100% agreement with you.
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I hope you want and yet our team well.
So I'm not sure what kind of maybe why not just you'll see financing on that and how much time in front of him on board sushi, and socially and conduct agenda and kind of timelines of that Hum.
Arthur Porcari: That's what I was hoping you were going to say. We understand. But, you know, the only ones we have, like I said, we've had to find out on our own. Those were done an individual investigation in the past.
I want to share growth in the life total available G shop like a light John It was a goldfish isn't that.
Arthur Porcari: But if they don't want to say who they are, why can't we do something and just put some on the website, for example, just put the total number of changes on there. If you can't name the change, just put the total number of changes or total number of stores that have been increased to a certain level, just something like that. But anyway, Look, I think you're doing a great, great job with Lowe's at all. You're doing a terrible job of getting the stock information out. It's got to be an ultimate embarrassment.
Yeah. This is.
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For the call.
Okay.
Okay.
<unk>.
I'm sorry, sorry go ahead.
Arthur Porcari: You've been trading under cash in the bank and half a book value for two years now, and in the meantime, you added Lowe's and Walmart and Marcus Limoges's company. You know, I mean, these are big people.
Yeah well thank.
Thank you and thank you for your opinion figure for support with definitely think they can.
The consideration that we will strengthen our appeal efforts.
Thank you.
Thank you. Our next question comes from the line of Frank Frank Ladderman Private Investor. Please proceed with your question.
Arthur Porcari: These are big companies, and somehow, If you just put out that you passed, 20,000 vehicles made, or 30,000 vehicles, you know if this or just generically you could put out and say we're now up to 12 Chains. You don't even have to name them.
Well, yes, good evening to those of you with China.
I have two quick questions as a doctor can still under active consideration I didn't quite understand.
Answer that was given to our.
My second question.
Arthur Porcari: Something like that. Just stay in touch with the public. We haven't had a press release since November.
Take care of the first one.
Our Orlando hometown.
<unk> sure well listen to all of you know well actually I've had my shovel hi. Thank you you called a dongle once you've all companion.
Arthur Porcari: Okay, and no new products. I mean, Johnny Tide does his own press releases for Kandi America, but they're dedicated to the trade journals. They don't necessarily show up on the Wall Street ticker. Okay, I'm done. Thank you very much.
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Okay. The phone call over time all of this I'm on the pedal.
Arthur Porcari: It can only go up from here. Thank you. He said he understood what you said, but there are always other ways to point out what the company is doing from different angles and to what extent the company is doing it. He said that you and Lowe's and Walmart and these big businessmen do your jobs very well, but in terms of promoting the company's progress, you are doing very badly. Now the stock price is so underestimated. He said that from November to now, there has been no real news.
Currently we did not adopt the Dutch auction for the share buyback. However, the company's undergoing distressed buyback process for more detailed information. Please refer to our 10-K disclosure. Thank you.
Okay. Thank you and my second question.
I along with many of our long time shareholders.
Vested in the company due to the electric car business do you have any plans.
He introduced the electric cars, perhaps with quick battery exchange in the future.
Arthur Porcari: He said, for example, you just mentioned that there are already 12 companies. Then you can mention in the news that we have already cooperated with 12 companies of what size and what size, and how many cars will be launched. You don't have to point out who it is.
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Alright.
Arthur Porcari: So in short, there are other ways to say it, but you never have. Anyway, I've said so much. The company needs to think carefully about how to get these real data out. Because we have to dig through our own research to find out how far the company has progressed. This is good.
Hmm got that handled.
Gotcha.
Seems like that example, pin Cui that'll be up for sale I mentioned that suddenly seeing some kind of equilibrium and again Don Cleveland.
Uh huh.
I salute.
Yeah constant got too soon.
Arthur Porcari: As we said before, we used to do a lot of novels in the past. We will do better in this area in the future. Operator, what's your take on that question? I'm sorry, sorry, Ellen. Go ahead.
So Daniel Hawthorne woman liquidity for.
For the public when we owned Coca Cola, because you're going to have to pay out familiar with all of them.
I'm comfortable saying that women, it's only games I think when we don't think so.
Yeah.
Okay.
Apparently.
Because of the market in China being too competitive even unhealthy you know all for the EV industry. That's why we sit in our focus to the electorate off road vehicles series, but better we turn in terms of the from the financial perspective, but definitely you know like.
Xueqin Dong: Thank you for your opinion. Thank you for your support. We will definitely take that into consideration, and we will strengthen our PL effort. Thank you. Thank you. Our next question comes from the line of Frank Blatterman, private investor. Please proceed with your, Well, yes, and a good evening to those of you in China. I have two quick questions.
Hum.
E V products.
The battery charging we are working on it at the current but and we will see and assess the market. When the time is right, we will and in a more active approach.
Frank Blatterman: Is a duck auction still under active consideration? I didn't quite understand the answer that was given to R. My second question. I'll take care of the first one.
Thank you.
Thank you very much.
Thank you.
Frank Blatterman: I have two short questions. The first question is, is the Dutch auction we mentioned still under consideration? I know you answered that question just now, but I don't quite understand what you meant. Can you elaborate on that?
Thank you. Our next question comes from the line of Steve Miller, a private Investor. Please proceed with your question.
Thanks for almost two years now I've been tracking on a daily basis seven days, a week using U S import data.
Andy shipping container imports coming into U S ports and compiling various cargo information from the accompanying bills of lading I received the data within 24 hours support arrival. So I've got some questions relating to your import so I can gain a greater understanding you're looking to go ahead and translate that.
Unknown Interpreter: At the moment, we are not using the Dutch auction method. Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group. Currently, we did not adopt the Dutch auction for the shares buyback, however, the company is undergoing the shares buyback process. For more detailed information, please refer to our 10-K disclosure. Okay, thank you. And my second question: I, along with many of the longtime shareholders, invested in the company due to the electric car business. Do you have any plans to reintroduce electric cars, perhaps with quick battery exchange in the future? Unknown Interpreter, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group This is China's electric car industry, which is relatively poor now. Now everyone is struggling with a lot of losses.
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Go ahead.
Great. Thank you whether those containers arrived at the port of Houston, and Los Angeles for long Beach.
S C auto sports is listed as the recipient on the bills of Lading do you ship any product to the United States from China that does not bear SCR those sports name on the bills of Lading that is is any product sent directly to a U S or Canadian customer from China.
Regarding the latter if so are those contents fully or partially assembled.
Xueqin Dong: So our focus is on electric cars. But in this regard, we still have to look at the overall trend. If the market improves, we will still work hard to make electric cars and electric buses. If there is no need, we will also expand the industry. Currently, because the market in China is too competitive, even unhealthy, you know, for the EV industry.
I'm sorry.
Can you repeat my understanding is you said you have seen.
It's just a a campaign at your Houston, and Los Angeles, and the taxes and what's the second part.
Okay. My question is are the containers that arrives at any of those ports are shifting to SC auto scores without regard to whether its Houston L. A long beach.
I want to know.
Candy ship.
He containers directly to a U S or Canadian customer.
Xueqin Dong: That's why we shift our focus to the electric off-road vehicle series for a better return in terms of the financial perspective. But definitely, you know, like in the EV product, the battery charging, we are working. Thank you very much. Thank you.
Hello, This is <unk>.
Sports directly.
Okay. Okay are those contents in those containers fully or partially assembled so that's my question. Okay. I'll go past kind of unusual going through them.
But to hit him. He has typically I mean, how does it look on call.
Steve Miller: Our next question comes from the line of Steve Miller, private investor. Please proceed with your question. For almost two years now, I've been tracking on a daily basis, seven days a week, using U.S. import data, Kandi shipping container imports coming into U.S. ports and compiling various cargo information from the accompanying bills of lading. I received the data within 24 hours of port arrival.
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Steve Miller: So I've got some questions relating to your imports so I can gain a greater understanding. Kewa, can you go ahead and translate that? For the past two years, every week, every seven days, I have been using my network to track down the expensive goods that the company ships to the U.S. I wanted to ask specific questions about the export of the goods.
Drawn towards long haul you hope that my apologies ourself.
So there is no direct delivery from our China based to a dose and customers we have to assemble points in U S. One is the primary points.
Dallas bays are where our SCO to sports some theories located there and not a central point in Los Angeles. So once those projects assemble we would then ship the end product to the dealerships for them to deliver to the customers.
Unknown Attendee: Great, thank you. Whether those containers arrive at the ports of Houston, Los Angeles, or Long Beach, SC Autosports is listed as the recipient on the bills of lading. Do you ship any product to the United States from China that does not bear SC Autosports' name on the bills of lading? That is, is any product sent directly to a US or Canadian customer from China? Regarding the latter, if so, are those contents fully or partially assembled? I'm sorry, can you repeat what you said you said you have said we shift the container to Houston, Los Angeles, and pay the taxes. And What's the second part?
Okay. So you have some kind of a receiving a distribution facility in L. A but not in long beach. So when she containers arrived there are those all center near Dallas facility before arriving at your customer's location or they ship directly to the customer.
Location for example from the L a port.
On Capex you lost me.
Oh I'm, sorry can you give me one more time.
Right, Yeah, Helen said that you'll have some kind of a receiving distributions facility at the Los Angeles Port apparently not in la long beach or in Houston, but wait wait I think of the long Beach, who don't how come we shouldn't you shouldn't woman Johnny de Los Angeles, but you're only going to be at my thereby children's Onvia no no change at all.
Unknown Attendee: Okay, my question is, all the containers that arrive at any of those ports are shipped to SC Autosports without regard to whether it's Houston, LA, or Long Beach. I want to know, does Kandi ship any containers directly to a U.S. or Canadian customer outside of SC Autosports directly? And if so, are the contents in those containers fully or partially assembled?
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Xueqin Dong: That's my, Okay, he said that he saw that the company transported these things to several ports in Houston, Long Beach, and Los Angeles around Texas. It's all marked on it; it's SC Autosports. Did our company directly transport these goods to the customer's end?, Unknown Speaker, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group So, there's no direct delivery from our China base to those end customers. We have two assembly points in the U.S. One is the primary point in our Dallas base, where our SCO2 sports subsidiary is located.
Well, the Los Angeles Humana.
Yeah Yeah.
I was just wondering if he is on that.
Yep Yep Yep.
I think most of them.
Uh huh.
I think there was no confusion I think what what.
Chairman men are in California, Los Angeles, and he minutes long Beach. He just doesn't know the exact of Citi name.
Okay. So let me see if I can understand this.
If containers arrive in long beach.
Those are not those are not something either by rail or by truck to Texas those are sent directly to customer locations.
Oh I'm sorry.
Please go ahead.
Of course, it all cash.
Xueqin Dong: There's another assembly point in Los Angeles. So once the products are assembled, we will then ship the end products to the dealerships for them to deliver to the customers. Okay, so you have some kind of a receiving or distribution facility in LA, but not in Long Beach. So when containers arrive there, are those all sent to your Dallas facility before arriving at your customer's location, or are they shipped directly to a customer location, for example, from the LA port? Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, I'm sorry, can you repeat one more time? Right, Alan said that you have some kind of a receiving distribution facility at the Los Angeles port, apparently not at Long Beach or in Houston. Wait, wait. I think it's Long Beach.
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Oh, okay.
Got it.
Okay.
So for those products that we are you know those probably and then we assemble in Los Angeles, Los Angeles County that we weren't that ship to the on the West Coast region.
Yeah.
Okay, and then in the end.
Then is it from that's long beach.
And then for Los Angeles, all those containers than truck or sent by rail to Texas.
No. They don't they don't they just theoretically once they are things I've seen in long beach. They will just do rapidly shifts to the customers.
Xueqin Dong: Mr. Hu, you said that you have a receiving distribution facility at the Los Angeles port, apparently not at Long Beach or in Houston. Long Beach, California. Is this the same place? Or is it different? Let's go to Manggar. I don't know the exact name in English.
So whether the container to arrive at long beach or Los Angeles.
Those are dealt with in your facility there and they're sent directly to the customer is that correct.
Right. So so basically we only have one just just color if I only have one location in California, which is long beach. So it's not there isn't one in long beach one the other one in Los Angeles.
Xueqin Dong: Unknown Speaker, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, Unknown Speaker 1-1-1. Yes, yes, so it should be the same place, right? This is the only place in L.A.
Is it is that facility in California did we know about that have you ever announced it or what kind of a facility is it.
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Xueqin Dong: I think there was some confusion. I think what the chairman meant by California, Los Angeles, he meant Long Beach. He just doesn't know the exact city name.
She was asking me on the telephone.
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Unknown Attendee: Okay, so let me see if I can understand this. If containers arrive in Long Beach, those are those for which are not sent either by rail or by truck to Texas. Those are sent directly to customer locations. If these goods arrive at Long Beach, that is, at this point in California, will they arrive at Long Beach directly after they are loaded? Or will they arrive at Long Beach, and then be transported to Dallas via rail or land transport before being sold?
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Okay.
You mentioned that we didn't disclose such facility.
Facilitate in Los Angeles, because it's not owned by our company.
It's one of their partners, we are working with us in that region.
We pay them to do the assembly of our products than they would ship those products to the.
Xueqin Dong: Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, Unknown Speaker 00.00.00.00. So for those products that we, you know, those products we receive and then we assemble in Los Angeles County, we will then ship to the West Coast region. Okay, and then in the West Coast region, is that Long Beach?
And customers are the dealerships in that region.
Got it how does your product get to a Canadian customer locations do you use any Canadian shipping code courts, and if so do you have any kind of a distribution facility at those ports.
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Xueqin Dong: And then for Los Angeles, all those containers are then trucked or sent by rail to Texas. No, they don't. They won't.
And I guess, if you want my mic wasn't as big of a deal they will not be at a premium for that.
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Unknown Attendee: Once they have been assembled in Long Beach, they will just directly ship to the customers. So whether the containers arrive in Long Beach or Los Angeles, those are dealt with in your facility there and are sent directly to the customer. Is that correct?
Oh My God.
Yeah.
So currently those products selling in Canada shipped from our U S subsidiary ongoing we plan to add another point of the assembly over there in Canada.
Okay.
Yeah.
Okay.
Yes, but then you'll be in a similar approach as what we'd do in Los Angeles that they will work with those local partnership but the assembly and then shipping to those customers in the region.
Xueqin Dong: Correct. So basically, we only have one just to clarify. We only have one location in California, which is Long Beach. So it's not there is one in Long Beach and the other one in Los Angeles.
Understood and then which of your products and the containers arrived fully assembled and which require assembly and are there any tariff or tax considerations involved in that decision.
Unknown Attendee: Is that facility in California? Did we know about that? Have you ever announced it? Or what kind of facility is it? We have never disclosed what kind of place we are in.
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Xueqin Dong: Unknown Speaker, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, and customers of the dealerships. Got it. How does your product get to Canadian customer locations? Do you use any Canadian shipping ports?
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Yes, so essentially we are paying the tax.
The cabin off those products off issue in the U S tax regulation.
Unknown Attendee: And if so, do you have any kind of distribution facility at those ports? How do we ship our products to Canadian retailers? How do we transport them?
Okay.
So is there an advantage for them to be and assembled versus assembled or does that make a difference.
And what you pay.
And they are the same on this we're also adding.
That is the reason we assemble here because this way they'll each container I can't.
Xueqin Dong: Do we use Canadian freight to get to Canada, or transport to Canada????? Currently, those products selling in Canada are shipped from our U.S. subsidiary. Ongoing, we plan to add another point of assembly over there in Canada. Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group Yeah, but then it will be in a similar approach as what we do in Los Angeles, that we'll work with those local partnerships for the assembly and then shipping to those customers. Okay. And then, which of your products in the containers arrive fully assembled, and which require assembly?
Can't have more shipments versus anything you you shut the whole car here.
Understood. Okay. So then according to the numbers for North America from the U S import data at least according to what I track you shipped 4474 golf cart containers in the first quarter of 2023.
But as of two days ago March 13th this quarter, you've only shipped 2036 golf cart containers.
Why has the number of golf cart container ship to North America dropped this quarter so far.
Is that due to product going instead to resellers in China for worldwide sales.
<unk> to distributors that you've now set up like for example in the U K.
Or has demand simply falling off or is the current buildup inventory adequate.
Unknown Attendee: And are there any tariff or tax considerations involved in that decision? We haven't assembled all of our ships yet. How is this going to affect our taxes? Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group So, essentially, we are paying the tax based on the category of those products featuring the U.S. tax regulation. Is there an advantage for them to be unassembled versus assembled, or does that make a difference?
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Xueqin Dong: and what you pay. And they're the same mission, also adding that the reason we assemble here because this way, though each container can have more shipments versus if you ship the whole car here. Okay. So, according to the numbers for North America, from the US import data, at least according to what I track, you shipped 4,474 golf cart containers in the first quarter of 2023. But as of two days ago, March 13, this quarter, you've only shipped 2036 golf cart containers. Why has the number of golf cart containers shipped to North America dropped this quarter so far? Is that due to the product going instead to resellers in China for worldwide sales or to distributors that you have now set up, like, for example, in the UK? Or has demand simply fallen off? Or is the current buildup inventory out of, Unknown Interpreter, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group? In the first quarter of 2023, there were 4,400 cars. But in this quarter, there are only 2,300. Why is there such a big drop?
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Okay.
We are adopting a devon sells approach Ah in lush and tissue. That's why there's some variance of that sales volume.
Okay, Q&A explained that any any bit more so we can understand that.
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Sure sure.
Well how's your push if they have any impact.
So in other words it from anybody.
What exactly do not understand that you're like Oh, Gee I'm going to explain.
Well the number of golf cart containers.
During this first quarter appears to have basically been flushed in half. So I was just curious to know we're trying to get a better understanding of the reason for that whether it was related to demand.
Liquid inventory or yes.
<unk> is going not to the U S, but to resellers or distributors that you set up in other places.
Okay.
Yeah.
I'm, especially and you got somebody else laid out all at once you. Once you run Joseph Tung Ourself, Ani arsenic that D G to the golf until churches.
Xueqin Dong: Is it because some of your cars were sold out in China? Or maybe you sold out, for example, in the UK? Or what caused the drop in data?
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Xueqin Dong: Unknown Speaker, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Grp, ???????????,?????,??????Talman, ?Talman????,?????,????,?????????????? ?????,????? Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Grp, We're adopting a different sales approach in last year and this year, that's why there's some variance of the sales volume. Okay, do you want to explain that any, any bit more so that we can understand that? I still don't quite understand. ????????
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Unknown Attendee: What do you not understand? What exactly do you not understand that you would like Tianmen to explain? Well, the number of golf cart containers during this first quarter appears to have basically been flushed in half. So I was just curious to know or try to get a better understanding of the reason for that, whether it was related to demand, adequate inventory, or if not. The product is going not to the U.S. but to resellers or distributors that you've set up in other places. He said, "You didn't answer my question just now."
You made it puts at all or maybe talk around but it might be a MA suite. So that's the one thing that we're pretty young.
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Unknown Attendee: I'm asking, from the first quarter of 2023 to 2024, why the amount of golf cars imported to the U.S. is reduced by almost half? He said, "What is the reason? Is it because the demand for golf cars in the U.S. has decreased?"
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Xueqin Dong: Or is it because of a change in your inventory? Or is it because you want to sell them to other people in China? Or is it because you want to send these golf cars to other countries? What is the reason?
Okay.
Let me try to explain I think Alan.
I am glad to cover off the line. So I'm chairman I'm trying to say so last year in 2023, although all the Gulf of clients in the U S. We have to we have to I'll go through co man. If you remember at the median in order to to sell to both those like low so store.
Xueqin Dong: You all know how much we have over there. So this is completely different from that. Last year, we shipped a large batch first. This year, we will only ship as much as we need, right? We don't need such a large batch.
However, this year, we directly deal with Lowe's to it with the other other buyers. So we only ship what their needs are that the amount of products. They need. So this way we don't have shipped more than what we what they need by last year Coleman require us to ship more.
Xueqin Dong: If we don't know how much to sell, we just put it here. Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group Okay, let me try to explain. I think Alan got cut off the line.
So they can't have enough inventory.
For them to market to those are those are those companies for sale.
Xueqin Dong: So the chairman is trying to say, so last year, in 2023, all the golf carts in the US had to go through Coleman, if you remember, as a median, in order to sell to those, like Lowe's, those stores. But this year, we directly deal with Lowe's and other other buyers. So we only ship what they need, the amount of products they need. So this way, we don't have to ship more than what they need. But last year, Coleman needed to ship more so they could have enough inventory for them to market to those, those, those companies for sale. Okay, understood.
Okay understood and then I guess related to that.
There you have noticed that the value of what SC auto sports has in stock at the end of each quarter has increased rather dramatically from $4 5 million at the end of the first quarter in 2022 to 22.8 million at the end of the first quarter in <unk>.
<unk> thousand 23.
And up to 50.5 million at the end of the quarter four in 2023.
And my question is is all of this inventory actually sitting at SCE other sports.
Or is it located at large customers like Lowe's as an example, but not yet invoiced. So that the sales have not yet been booked or can you explain how that works.
Unknown Attendee: And then I guess related to that, the value of what SC Autosports has in stock at the end of each quarter has increased rather dramatically from $4.5 million at the end of the first quarter in 2022 to $22.8 million at the end of the first quarter in 2023, then up to $50.5 million at the end of the fourth quarter in 2023. My question is, is all of this inventory actually sitting at SC Autosports? Or is it located at large customers like Lowe's, as an example, but not yet invoiced so that the sales have not yet been booked? Or can you explain how that works?
Oh, Okay I got your question, but can you just tell me the numbers one more time, so I can I'm right. It sounds like them accurately that's okay. No problem at the end of quarter one in 2022.
See other sports had inventory of $4 5 million sounds fine okay.
And the end of quarter one in 2023, it went up to $22 8 million.
And at the end of the fourth quarter this last year.
I'm sorry.
<unk> Q1, 2023 went up to what.
And of.
The fourth quarter in 2023, it went up to $55 million.
It's about 5 million okay.
So I'm just trying to figure out is this inventory sitting at F. C Auto sports, Okay got it good or okay got it.
Unknown Attendee: Okay, I got a question, but can you just tell me the numbers one more time so I can, I'm writing it down, so I can actually, yeah, that's okay. No problem. At the end of quarter one in 2022, SC Autosports had an inventory of 4.5 million cars. 4.5. Okay. In the end of the first quarter of 2023, it went up to $22.8 million. And at the end of the fourth quarter, just last year, I'm sorry. The end of Q1 2023 went up to what? At the end of the fourth quarter in 2023, it went up to $50.5 million. 6.5 million.
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Unknown Attendee: Okay. So I'm just trying to figure out if this inventory is sitting at SC Autosports? Okay, got it, got it. Or...
Getting through most of that.
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Unknown Attendee: Okay, he... Got it, yeah. Uh, I got it. So he wanted to ask, he observed that the value of SC's inventory had been constantly increasing. From the end of the first quarter of 2022, it was 4.5 million. It continued until 2023.
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Yes.
So I guess that the increase was based on the the sales plan of our partner's late lows. So we will have more into their inventory in U S. Under our facilities like S E T.
Just to get ready to meet the service, Okay. Our plan partners.
Xueqin Dong: He also mentioned a number in the middle, which was about 5 million. And then, by the end of the fourth quarter of 2023, it increased to 6.5 million. He wanted to know why there was so much inventory. And then, is it because they haven't sold out yet? Is it... Is it because they've already opened the ticket and haven't shipped it out yet?
Okay.
Just so you know a woman can help me a short elements that I'm asking yeah. When I said that you couldn't daughter.
Also the kind of social and we have come to the mind yet.
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She has a pool.
We just don't want you to have a panel of assays social tool.
And as we mentioned earlier right we have expanded our collaboration.
Xueqin Dong: Or is there a specific reason why the inventory is constantly increasing? In 2024, we are going to prepare so many things. Because last year, we went out through the door.
Oh over tens of those on the retail chain and then the superstore companies philosophy, we are expanding our channels to those dealerships. So that's why we have to get ready and have more inventory in place.
And to be prepared for the upcoming Soc transaction and activities.
Xueqin Dong: Now we are going in directly with the teacher, so what he said may be that he is not clear on this point. So I guess the increase was based on the sales plan of our partners, like Lowe's. So we will have more inventory in the U.S. under our facilities, like SC, just to get ready to meet the sales plan of our partners. Unknown Speaker 1.
Okay, and then we've heard unofficially about candy distributorships for off road sales outside of the U S grain or like in the U K and in the EU can you describe what your business plan is for utilizing distributorships for off road sales outside of China and the U S.
Xueqin Dong: Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, Unknown Translator, Unknown Translator, Unknown Translator, Unknown Speaker 0, We have more stores selling our products. So we are currently in a state of stagnation. We need to prepare enough...
Yes.
What distributor ships currently exist and what's your projected timetable for expansion of those.
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Xueqin Dong: Unknown Speaker, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, And as we mentioned earlier, right, we have expanded our collaboration. Okay, and then we've heard unofficially about Kandi distributorships for off-road sales outside of the US and China, like in the UK and in the EU. Can you describe what your business plan is for utilizing distributorships for off-road sales outside of China and the US? What distributorships currently exist? And what's your projected timetable for expanding those? We also heard from non-official channels that we also have some dealers who bring our products to places other than the United States and China, such as the UK and the EU. Can you tell us more about this?
Yeah.
So we are going through.
Those are the foreign trading companies look at it in China, a two and a half or so that was shipped to those area like the U K that you and some other southern Asia areas as well so and volume right now is not so large at the moment. So yeah, that's what happened right now.
And can you give us any color of what's in your backyard in China for off road EV sales.
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Xueqin Dong: Unknown Speaker, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group So, we are going to those foreign trading companies located in China to have our sales shipped to areas like the UK, the EU, and some other Southern Asian areas as well. And the volume right now is not so large at the moment, so yeah, that's what happened. And can you give us any color of what's in your backyard in China for off-road EV sales? Can you give us some information about the number of patients in China's nursing homes?
So Neil Doyle.
The amount is not that material there's some.
What it is and some other.
Our wholesaler to get our assembled for the pest south.
The amount is I imagine that is not that material.
Okay, and then the political change there may be a political change in the U S that might significantly increased tariffs on manufactured goods from China.
Ah you're very concerned about that somewhat concerned or not concerned at all.
Xueqin Dong: Unknown Speaker 06.01.21 Transcribed by https://otter.ai, Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group The amount is not that material; there are some distributors and some other wholesalers to get our samples for the test cells, but then the amount, as I mentioned, is not that material. Okay, and then there is the political change. There may be a political change in the US that might significantly increase tariffs on manufactured goods from China. Are you very concerned about that? Are you somewhat concerned or not concerned at all? And might that propel you to follow through with the press release that you issued a number of years ago about possibly establishing a manufacturing facility, if not in or any close to the Texas facility, perhaps in Mexico? Do you say the political will impact what?
And might that propel you to to follow through with the press release that you issued.
A number of years ago about possibly establishing a manufacturing facility.
Not really.
When you close to the Texas facility, perhaps Mexico.
Do you say the political will impact a watt.
What's the well there's a possible political change here in the United States.
There is a chance that that might.
Hello, the result of increasing tariffs on manufactured goods receipt from China.
And I just wondered how how concerned you guys might be.
And then how much that might motivate you to establish a manufacturing facility either in Texas or in Mexico falling up Mr. Hughes, Our press release that he put out a number of years ago about wanting to do that.
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Unknown Attendee: Well, there's a possible political change here in the United States, and there's a chance that that might result in increasing tariffs on manufactured goods received from China, and I just wondered how concerned you guys might be and how much that might motivate you to establish a manufacturing facility either in Texas or in Mexico following up Mr. Hugh's press release that he put out a number of years ago about wanting to do something like this. I got it. Unknown Speaker 1. We are tuning in.
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Okay.
That you'll need to watch and you mentioned it would be a wash.
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Oh man things like Dona.
Unknown Attendee: Yep, so we are considering those factors and thinking of the plan, you know, for the facility establishment in North America.?? But there is such a plan. We have been thinking about it, and we have such a thought, and we will... Disclose more information, Unknown Speaker 05. All right, and then just one follow-up on something that Art kept asking about, and this is sort of a crazy question, but I'll ask it anyway. Those 540,362 shares that you repurchased using your buyback program in January and February of this year. Is that done in the open market, or is that part of a private transaction?
Yeah.
Okay.
Yeah. So we are considering those factors and.
The plan for that.
So look the establishment and nothing to America.
That's one.
Yeah, we have.
We are thinking about it and we have such a vote.
[laughter] disclose more information.
Refer to development.
Alright, and then just one follow up from something that are kept asking about and this is sort of a crazy question, but I'll ask it anyway.
Those 540003 hundred 62 shares that you repurchased.
Using your buyback in January and February of this year.
Is that done in the open market or was that part of a private transaction.
Unknown Attendee: I have a question. You mentioned that you bought more than 500,000 shares in the second quarter of this year. Did you buy them from the public market, or did you buy them through private transactions?
Do you want to know what you sound like you shouldn't you shouldn't without senior Yeah. I think when you go into what should the language you should actually have them I dunno.
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So she sees that it's always a function I quite caught it.
Xueqin Dong: Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group According to the relevant regulations of the SEC, we can't buy it ourselves. So yeah, we do our broker, we do the stress buyback from the open market and comply with all the SEC regulations. Okay, that's all my questions, and I'll just echo what Art was trying to get across to you, and it doesn't seem to be getting through to anybody there.
Well most of the way at Hudson can conclude and I'm going to talk to you.
There's not one way you do my that moment since you opened in March.
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Bob So yeah, we are.
Through our broker we do the stress buyback from the open market.
The FCC regulations.
Yeah.
Okay. That's all my questions and I'll, just echo what art was trying to get across to you and it doesn't seem to be getting through to anybody there.
Unknown Attendee: You guys went public back in 2007. Where is the stock sitting now and what you've managed to accomplish? Clap, clap! It is not being reflected in the share price. And from anyone's third-party view, it doesn't appear that, at first, you're very concerned about it. And second, that you're doing anything about, the Blue Shirt you seem to have there. Hands tied behind their backs, you're not letting them loose to go out and try to generate institutional interest. All they seem to be doing is reviewing drafts of your press releases and chiming in on comments at your monthly meetings but not utilizing the resources that they have to promote company stock. I just don't understand why you don't seem to be more concerned about it and using amorphous and ambiguous and arbitrary language saying that you're working on it and you know you're concerned. It just gets old hearing it year after year.
You guys went public back in 2007.
Whereas the stock sitting now and what you've been managed to accomplish clap clap.
And it's not being reflected in the share price and from anyone's third parties you it doesn't appear that.
First they're very concerned about it.
They are doing anything about it.
Blue shirt, you seems to have there.
Hence tied behind their backs are not letting them loose to go out and try to generate institutional interest are they seem to be doing is reviewing crafts of your press releases.
And in terms of your own comments on your monthly meetings.
But not utilizing the resources that they have.
Promote company's stock.
I just don't most of US are just puzzled why you don't seem to be more concerned about it.
Using amorphous ambiguous and arbitrate language, saying that you're working on it and you know you're concerned it just gets all doing it year after year.
Unknown Attendee: The shareholders are very impressed. Anyway, thank you very much for your responses. I appreciate them.
Shareholders are very frustrating.
Thank you very much for your responses I appreciate it.
Thank you.
So I shall I just wanting senior challenge here I can see what was it that they also make sure Humphrey I'm thinking I need and paying attention Algonquin without Google's 90 airports.
Operator: He told me that the company has been listed since 2007 and that the company's performance has not been satisfactory so far. It seems that the company doesn't care and doesn't make any real efforts to change the situation. The company also has foreign investors. But it seems that the company will not actively use their resources to expand the company's influence in the market. It seems that what they do is just to respond to the company's requests, to help the company change the news, and to help the company make suggestions.
So to Tianjin and lucci to tie it into the central.
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Yeah.
Thank you.
Our next question comes from the line of Walter Hill with Carty <unk> Company. Please proceed with your question.
Walter Hill: Many shareholders are very anxious and worried, but it seems that the company is a bit motionless. Anyway, I would like to reiterate the suggestion made by the early investors of ARK just now. This is also one of the suggestions I would like to make.
Oh no.
On the last conference call. It was explained why no press releases mentioning lowest superstores as the first big box.
Can be a retailer with 25 locations. This was done in deference to the lighting levels like the cars.
Most of the boat subsequently the attack was taken again in August with Walmart coming aboard 40 popular stores.
The Amazon store early January with no P. R.
Walter Hill: Thank you. Our next question comes from the line of Walter Hill with Cardion Company. Please proceed with your, On the last conference call, it was explained by no press releases mentioning Lowe's Superstores as the first big box candy retailer with 2,500 locations. This was done in deference to letting Lowe's make the first promotion move. Subsequently, the attack was taken again in August with Walmart coming aboard with 4,500.
Covered that all candy products are now in market for a moment says campers world stores, which is a public company.
Alright November two smaller chains rural King with 140 stores.
P B Martin, Canada would that'd be stores forgiving can be P. R's P. B also holds.
Radian likeness to tractor supply a hardware device.
Just on public information both P R ethnic violence.
On average cabin shareholder relies on press releases and SEC filings.
Stock update by this thing, but can you just told outlets are less than a thousand.
Walter Hill: Next, the Amazon store. Early January, with no PR, it was discovered. All Kandi products are now in Marcus Limones, campus world, which is a public company. However, in November, two smaller chains, Rural King with 140 stores and P.V. Martin, Canada, with 270 stores for giving Kandi PRs, P.V. also holds Canadian Licensed Attractive Supply and Ace Hardware. So based on published information, both PR and SEC filings, if an average Kandi shareholder relies on press releases and SEC filings, he might assume that Kandi's total outlets are less than a thousand, even when adding independent dealers. This is despite the actual out count being over 8,000 when adding in unannounced Lowe's, Wal-Mart, and Kemper locations, where this lack of knowledge becomes a problem. When looking at Kandi's $47 million in inventory at the end of Q3, this much inventory might be a red flag if there were only reported 1,000 locations, but a very well-timed and smart position with 8,000 plus locations. I'm sorry, Hannah; let me explain what you have so far.
Even when adding independent dealers business, despite that actual outlet count be over 8000, when adding an unannounced lowes Walmart template for world.
Whereas this lack of knowledge.
Problem is when looking at can be 47 million in inventory at the end of Q3. This much inventory might be a red flag. If there were only reported a thousand locations, but a very well timed this smart position with 8000 plus locations now my questions.
No no no.
I'm sorry.
You have so far.
Did when he said you have Glenn you're a woman that determine the actual Lebanon. She never shop with you off line 90 days ago, just wishing much I'm on the life and adult male Fob, which is a.
Uh huh.
That tells you something glenda.
Mutual Foundation, one got you.
Sure sure.
Daytime minutes enjoying with home behind the wholesale who know that bias on a warm up a yamaha.
Yeah, just wanted totally and she and the option to do that.
Buena.
But I if I can.
Sushi, a concert series featuring like the Shanghai Rush on the NGL Kim campus a world now how are you.
You want to put on hold the Oh, you know what how many you're going to Congress.
Yeah, Okay, and I live in time as you all know why not a T shirt Eli.
So probably the human golf E C.
I'm kind of coming up with locations in condensate 2000 people now that are done in Santa Ana, California.
Kewa Luo: Okay, hi, very good. Unknown Interpreter, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group. So, based on the information that has been released, whether it's the press release or the SEC, the new investors, from their point of view, can only know that the company's total number of stores is less than 1,000. And even with all the independent distributors, but, in fact, with the fact that we haven't announced Lowe's, Walmart, and Campus World, the number of stores may be more than 8,000. This lack of information will make people think that the company's 470 million US dollars of inventory announced at the end of the third quarter is a very obvious problem. The number is not enough.
Especially we will keep you guys seem to say that PV Marsh Canada.
So as long as you're watching isn't incongruous <unk>, where are you seeing Mongol her she said she met whole theory of Knowhow common that sometimes you get her I'm sure.
I'll go to now.
Yes, sure down the Hypo to you can I think this is Josh on for the police and social and she'd be shall not sushi cash a woman Nino from what I can say now with the warm on campus Award contacted you do that.
So she's got them and yes, you know how much I will pass you know they don't seem to have a tuition are quite young and Jade that's difficult to say what that does is that you can see some people more silicon with uncertainty about one thing and of course, we're not sure she's a hunting and they'll go once you finish it on top of shock.
You will see that but I don't see kind of your younger so don't forget that on Monday in D.
Kewa Luo: Because the report only shows 1,000 stores that can be covered, so this is a potential problem. Go ahead with your questions.
So we took that she has a chance then they go into your.
Hi, Tayo.
Walter Hill: OK. If new accounts and products are added, Kandi should announce milestones without being specific, such as each time a chain is added, starting out with PR, with the total number of outlets, also keeping a tally on Kandi America's website. If an investor needs to know specifics, all he'd have to do is search a big box e-commerce site. Thank you. Question 2. Assembly reference.
When she go ahead with your questions.
Okay.
New accounts of products right and you can be sure to announce milestones without being specific such as each time it changes.
Starting out with PR with the total number of outlets also keeping a tally on can be America website, if an investor needs to know specifics all you'd have to do is search big box ecommerce sites.
Okay.
Question two.
Right.
Uh huh.
Kewa Luo: Hang on, let's go to one question first. Go ahead. If it's possible, can Kandi take into consideration that every time you add a chain store, you announce it in a way that the company may reach a milestone. You don't need to disclose the specific situation of each store. You can publish news and announce, for example, how many stores there are in this new chain store and also keep data statistics on the Kandi website. If investors want to know the specific situation, they can see the information by searching on the Internet. Thank you for your suggestions.
Let's let's go one yes, one question sorry go ahead.
Cradle thoughts as you kind of do you suppose you sure novel colleagues say you made I don't think I'm going to answer again finish a whole 90, tongo shampoo quote unquote.
Somebody the functionally zamboni ample she altimo GT that same question. Yeah. Just hearing you keep on top of where you guys seem like a hawk on June 19. It was once he got single names would then have to push out. Some unusual now now hoping to you know you think you can debate what kind of some yet I wonder how nimble. She got gosh, who would you go talk to you all I can tell me if I'm gonna have thrown out.
Gentlemen, you actually know how you want.
Totally understand G. T. Nowadays you if I'm in ceiling on how much you I was just going to go social that's actually got pulled out my hustle floor do you know what kind of Jesus and Sheila.
Yes.
J J.
Uh huh.
Kewa Luo: That's a very good opinion. We will make responding adjustments after communication. All right, another part, possibly similarly replicate, update, continue Kandi's November 2022 PR, where it said Kandi Technologies produces 10,000 crossover electric golf carts. You should put out each time there are maybe another 10,000, put out a new PR showing that they've passed.
For the two of us shine intelligent oxygen.
Thank you for your suggestions.
Opinion, we.
We will make corresponding adjustments after communicating with and confirming with our partners. Thank you.
Yeah.
Alright, and the other part.
And possibly symbol. Similarly, replicate update continue can't use November 2022 P. R where it said cabinet technologies produces 10000 crossover electric golf cars, you could should put out each time, there's maybe another 10000 put.
Out of New P. R.
So in the past.
Kewa Luo: Another 10,000 units. For example, in November 2022, you disclosed that Kandi had produced more than 10,000 high-voltage electric golf balls. Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, Thank you for your advice. We've been in a period of strategic adjustment for the past two years. Unknown Speaker 1, Unknown Speaker 2, Unknown Speaker 3, Unknown Speaker 4, Unknown Speaker 5, Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, Thanks again for the suggestion. That's a great idea. In the past two years, we have been through a strategic shift which has caused uncertainty. That's why we are relatively conservative in terms of the public world.
Another 10000 units.
Oh, Hello, Joseph deals work unless you can go online and she hasn't El Cubo Laguardia is a comedy.
Candy Shanghai.
In terms of like you buy now like weekend on costs for children countless England sees those yet.
Yes, he made out.
So glad you bought 11 Usher Hall, a whole 90 properties that he won.
Killing function.
So she said that shouldn't chat social thing they can do.
Uh huh.
Uh huh.
So danielle.
We're kind of Intel did you see a laser beam.
And the.
So sure.
Yeah sure sure.
Sounds good.
Sure.
Patricia and I will make a country and Virginia, but that doesn't change.
Gotcha.
Well, thanks again for suggestions that's a great idea.
In the past two years, we have been through the strategy shift with cause uncertainties. That's why we are relatively conservative in terms of it probably will leave.
Kewa Luo: The Press Release Approach. Ongoing, we will strengthen our effort in PR and make more promotions of our products and developments. All right, the other question I was going to ask has already been answered, whether you're going to add any new superstore outlets this year. So y'all have already answered. So that's all of my. Do you still want to ask how many new superstars?
The press release approach.
Ongoing we will strengthen our efforts in the P O and promotions of our products and development. Thank you.
Yeah.
Alright.
The other question I was going to ask has already been answered of whether you're going to add any new superstore outlets. This year. So like you have already answered that question. So that's all of my questions.
You still want to ask how how many.
Yeah Yeah.
Walter Hill: I just wanted to find out how many new superstore outlets were going to be added this year, and so how many outlets would there be? Okay, the last question I want to ask is how many new superstore outlets are expected to be added this year. If there is such a plan, how many will it be? And what is the total number of outlets expected?
Yeah.
I just was okay.
Find out how many they were gonna add any superstore out this year and if so how many.
Outlets would there be.
Okay, I'm, sorry, Julian I kind of wonder what kind of genius Qimonda sushi with India. Two shall seem that you don't watch how do you see coming through superstore, Alex who glut and you'll get what you want to find the definition of tuition alcoholic badman, yes, sure sounds like <expletive> to wash out.
Kewa Luo: Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group. In addition, in addition to supermarkets, we will try to achieve more than 1,000 stores from 300 in 2023 to more than 1,000 in 2024. So based on the foundation, working with those superstores, we have now added more cooperation with more than 10 superstores and outlets with different scales Besides, we are expanding our cooperation with the dealerships from 300 in the past to more than 1,000.
Uh huh.
Switching element.
Uh huh.
Tom.
You would think that on us.
That was helpful.
That's all for me.
That is helpful.
He was just telling us what element of Geo Harman yet elements one quick one on the I think in the summer.
When something juices, and I thought what you change out.
So based on the foundation.
Working with the lowest service Daus, who have now added more cooperation with more than a pen.
Super stores outlet with different scales.
Besides we are expanding our cooperation with the dealerships from in the past more than 1000 in 2024.
Walter Hill: That's all my questions. Thank you. Thank you. Our next question comes from the line of Mark Kahnau, private investor. Please proceed with your, Good morning and good afternoon, and hello.
Thank you.
That's all my questions.
Thank you.
Thank you. Our next question comes from the line of Mark No private Investor. Please proceed with your question.
Yes, good morning, good afternoon and Hello.
Kahnau Mark: First, I have to make some comments and then my, On the pre-conference call, a question was asked from the filing about the company's retention of a business growth and financial advisory service consultant. TfL simply responded, Indeed, it is for our separate plan for our US subsidiary SC Autosports to explore the possibility of being separately listed on the US main board. Nothing further was discussed on this subject since it was the last question's answer. However, if I understand this correctly, it appears the board of directors is considering spitting off the US subsidiary Kandi America into a separate US NASDAQ. This makes a lot of sense in the reasoning of the true value of Kandi as a separate manufacturer being able to book its sales, and spin-offs also being able to book their own. Particularly since Kandi at its current price is not being given any value for all of its business entities above it. Kewa, if you can translate this first, and then I...
Just to have to make some comment and then my question.
On the prior conference call Attritional goes off from the filing about the company's retention of our business grows and financial Advisory service comes up to you.
Oh simply respond if indeed it is for a separate plan to our U S subsidiary 50 orders book to explore the possibility of being separately listed in the U S. Mainboard.
Nothing further was discussed.
The subject since it was the last question's answer.
If I understand this correctly. It appears the board of directors of considering splitting off the U S subsidiary can be America into a separate whereas domestic company.
It makes a lot of sense and the raising of the true value can be as a separate manufacturer being able to book it sales and spin off also being able to book its own P&L.
Particularly since Kandi.
At its current price is not being given to any value for all of its business entities at both its catch values.
Maybe if you can translate distressed and benign okay. Thank you.
Digital packaging and when he should glandulous yeah.
It sounds duopolies dawns on Eylea and Joseph I think you see the uncles leonean, yet kind of like Atlanta, you Sushi and it kind of like you've got your short and then Peter Glenn you're going through a way that bother you with NGL.
Kewa Luo: Okay, thank you. His question is about... In the last phone call, someone saw a question from the SEC's public relations website. They saw a financial information service that we disclosed about the company in order to retain business growth and hire. The CFO simply replied that we wanted to have an independent plan for our subsidiary, SEC Autosports, and then explore whether it is possible to be listed separately on the US motherboard. Because this was the last question, there was no further discussion at the time.
Yeah.
I hope, we all know how fishing pool.
CFO Duston I sit down with Jay you don't quite agile sure, we'll manage that Allergan deal and let me, let you want to ask the other sports Yoga Twilio T Y Ho times, one shipper, you'll come in times, it doesn't equal to banks and I'm sure. When once this year Oh, what did you say functionality with at home and school Alicia I turn to the financial Kenosha machines that yell at me.
Kewa Luo: If I understand correctly, this may be indicating that the board is also considering including the US subsidiary in the North Group purchased by the subsidiary into an independent NASDAQ listed company. This can reflect the real value of Kandi as an independent manufacturer. Especially at the current price, all of Kandi's business has not been truly reflected.
It turns out colleague John me, well, that's a cool cereal Bowl hunt and producers.
So I think what I point, you talked a few times that Nate and I point between the Tories announced that Vishal.
And when she said no no I'm glad she I'm constantly you got will either choose onshore, Virginia and a judge it's on the institutional anyway, either and you'll see you'll see she sends them, losing their jobs Michelle in Congress or the yeah. We don't usually a male paging unit, that's yet to land on.
Piracy that you'll Lindsay go ahead with your first question.
Unknown Interpreter: Can the CFO give us some more color as to what the board is thinking and what the end is? Unknown Interpreter, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, So regarding the IPO process of our U.S. subsidiary And as for further development, we will provide timely disclosure in accordance with the relevant regulations. Okay, understood. Also, since Kandi China makes in-house 85 to 90% of all parts that go into its own vehicle, it can double dip. So how would the revenues be booked should Kandi spin off its US subsidiary? The second question is that Kandi China produces 85% to 90% of all the accessories for its own vehicles, so these can't be double-recorded in the financial reports.
And if you give us some more color as to what the board's thinking and what is the ankles.
I'm Jewish sample in Illinois, you think even again shlomi.
Sushi a sure thing.
Why don't you wait to each of their sounds like he says well move the allocation.
Okay.
With census, the woman.
Hi, David.
This isn't a geological.
Judy this is on things that way.
So I'm glad I'm waiting to see that going forward.
So regarding the IPO process of our U.
Let's see what it was for.
The company is either.
Of this matter.
As for <unk> development.
Provide disclosure timely in accordance with the relevant regulations of the SEC.
Okay understood and also since Kandi, China makes it in house, 85% to 90% of all parts that go into its own vehicles.
It can double dip so how would your revenues be booked should kind of be spin off its U S subsidiary.
And again when you go sure hungry, if I'm glad you're shaky.
Shan Shan.
I mean the passion.
South I'm Rachel she got you here. So the paid yeah, because you only see a troll around that so you take him and ship when I was in Shanghai and Beijing.
Unknown Interpreter: If Kandi is to isolate its U.S. subsidiary, how will this part of the income go into the account? First of all, we will not double-confirm the relevant income for all internal transactions and internal usage. We will compare the relevant amount in a comprehensive accounting way, and there will be no re-calculation.
Hi, Bonnie.
And now I will go a combi jounce evening, what's the what's important what I'm not even sure sounds like wasn't shop.
So is it a soda neighborhoods neighborhoods.
Neighborhood us.
Women don't always said central insurance and when to Sogou.
Idaho, Great price, it's really a policy that once these all sound one that Tina boy or a hutch one shot.
Unknown Interpreter: In addition, assuming that SCO Sports can be listed independently, Basically, Kandi should continue to be their shareholder and will continue to disclose relevant financial information. So, first of all, for all the intercompany transactions occurring in the company, we will not have any double dip or any duplication of the revenue or related amount. Based on the proper accounting treatment, we will eliminate all those related balances. And besides, if SEO.Sports is to be separately listed, it's very likely Kandi, our group, will still be the controlling shareholder of SEO.Sports.
D var.
Donna Jossa that's.
That's what's known to this answer a few lines down how do you think equity piece or is it having a cone beam.
Being weighed by someone that's how I would sit out shipping belt pillow.
So first of all for order in the company's infections occur in the company.
We will not have any diablo Diablo and deprecate recognition of the revenue.
Does that amount based on the proper accounting treatment, we will eliminate all those related balances to make sure no double deprecate, what can make sense of the revenue.
And besides E sports.
Sport will be separately listed.
It's very likely Kennedy, our group will still be the controlling shareholder of <unk>.
And the related party such.
Unknown Interpreter: So we will continue to consolidate the financial statements of ESSE into our group consolidated financial statements, Unknown Speaker, Unknown Speaker, Yeah, that's my question. Very good. And in the past, the last question is, in the past, there were also talks about the Chinese subsidiary that produces lithium batteries and power trains to be spun off separately. Is there anything happening here? Or is this off the table?
Such group, so we will continue to consolidate.
The financial statements of Etsy into our group consolidated financial statements.
So hopefully I can tell you very good.
Yeah that sounds my questioning very good.
And the last question is no.
The positive it also talks about the China subsidiary that produces lithium batteries and powertrains to be spun off.
Separately is there anything happening here or is it sucks.
Got it.
And also when he was just downhill alone year optional what's wrong with that woman that Dan Sherlock Holmes, where well see well yeah plenty useful I walked to languish I'm sure Nike to sound. She has no smoking ban in kindergarten.
Kahnau Mark: The last question is that we have also disclosed that our battery company will be listed at noon; what progress has been made in this matter? Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group...
That's all.
Hello.
Oh, I forgot to conduct routine data.
[laughter].
Regarding me thanks for letting me have some momentum.
Todd how long you'll show them, what's you're saying he or she can go on and I will not go through that woman's I told her that she wants at a dance you're going to wait for each one like that which I'm sure Hey, Ryan.
Kewa Luo: Hello, can you repeat the question? He asked: We have previously disclosed that our subsidiary in China, a battery company, will be released and sold separately. What progress is there in this matter?
Yes, you're thinking anywhere from like in Japan.
Good woman.
I talked a <expletive> I'm going to go how women to call a year ago.
Go ahead I can also tell you was thinking about what microchip is a component.
I have to push a bookshelf coupons unless you want my gosh, a bushel, which Dan schmechel and filling that well Michelle please let them do functional that don't wash I'm sure.
Kewa Luo: I think we are still adjusting the product structure. After we received the product, Unknown Attendee, Kewa Luo, Xueqin Dong, Arthur Porcari, Xiaoming Hu, Kandi Tech Group, Also Unknown. Unknown Speaker 0 for high school.
So this isn't about why now.
And then one P M opex again, according to the law.
Also now.
Well hi, somewhat.
Well I think so two more on the personal opinion, that's what should happen with Hyundai almost wait until 2020, I'm. So I'm sure that's a washing machine.
Xueqin Dong: That's not to say that we are all strategically adjusting, that is, the electric car market in China is very tight. So we've slowed down on this business. We're adjusting the product structure. Once we've adjusted it, we'll announce what information we have. So currently, we are having the status shift of those battery recharges. Unknown Speaker 05.
Memphis is for all women does that sound like heartburn from Guantanamo cheaper for conquering Q, yet, but quite a year when Pamela things I'd tell.
Pardon me Jacob I'll go colleagues.
What I'm, saying to them as they come forward.
Yeah.
So currently we are having to us that there's a shift of those.
Battery recharge industry and the related.
Xueqin Dong: So I guess once we have it all settled, we will go from there and discuss it. Okay, I understand. Thank you a lot for the answers and, yeah, have a nice day. Thank you. Thank you. We've come to the end of our time allotted for questions. I'll turn the floor back to management for any final questions, and thank you again for joining today's conference call. If you have any further questions, please don't hesitate to contact our IR consultant, Blue Shirt, at gary at blueshirtgroup.co. Or you can contact us at ir at kandigroup.com. We look forward to updating you on our next earnings call. This concludes our call for today. Thank you very much. You may now all disconnect.
Business, So I guess once we.
We will have it all settled and we will go from there and goes more upcoming development information.
Okay.
Okay I understand.
A lot for the answers and have a nice day.
Thank you.
Thank you.
Come to the end of our time allowed for questions I'll turn the floor back to management for any final comments.
Thank you again for joining today's conference call. If you don't have any further questions. Please don't hesitate to contact our IR consultant Boucher, Gary at Blue shirt Group C O or you can contact us at IR at Kandi Group Dotcom, we look forward to updating you on <unk>.
Our next earnings call. This concludes our call for today. Thank.
Thank you very much you may now disconnect.