Q3 2024 Kandi Technologies Group Inc Earnings Call
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Greetings and welcome to the CANDI Technologies 3rd Quarter 2024 Financial Results Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.
Speaker Change: 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 Candy Technologies. Thank you. You may begin.
You're not the one who's been
Speaker Change: Thank you, operator. Hello, everyone. Thank you all for joining us on today's conference call to discuss Candice's results for the third quarter 2024. Earlier today, we issued a press release covering those results. You can find the press release on the company's website, as well as from Newswire Services.
Speaker Change: Please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties.
Speaker Change: As such, the company's actual results may be materially different from the expectations expressed today.
Additionally,
Speaker Change: Unless otherwise stated, all figures mentioned during the conference call are in U.S. dollars.
Speaker Change: Before we continue, I would like to introduce the team joining me on today's call. Joining us are Dr. Xueqin Dong, our newly appointed Chairman of the Board.
and Mr. Alan Lane, our Chief Financial Officer.
Speaker Change: Mr. Chen will deliver his prepared remarks in Chinese, which I will translate afterward. Following that, we will have Q&A session, where our chairman, Dr. Dong, will also participate.
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Speaker Change: With that, let me now turn the call over to our CEO, Mr. Feng Chen. Go ahead, Mr. Chen.
Thank you for joining us. Thank you. Thank you.
Speaker Change: Hello, everyone. Thank you for attending today's meeting. I am Cheng Feng, the new CEO of Condi Technology Group.
Speaker Change: Before I share the results of the third quarter of the company, I would like to thank the Board of Directors for their trust and respect for our team and senior leaders.
Speaker Change: Their hard work has created today's opportunities for Kangdi. It is my great honor to be able to lead such a company to face challenges and open up new growth opportunities.
[inaudible]
Speaker Change: Good day, everyone, and thank you for joining us. I'm Feng Chen, the newly appointed CEO of Candy Technologies Group. Before we dive into our Q3 results, I want to thank our board for their trust and recognize the dedication of our team and the leadership of my board.
processors whose efforts have positioned Candy for the opportunities ahead.
Speaker Change: It is a privilege to lead this company as we work together to navigate challenges and unlock new growth.
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今年以来由于受纯电动非公路车销售模式调整的影响,公司的业绩出现了暂时的下滑。
相比去年同期的3640萬美元有所減少,前9個月收入為8980萬美元,同比下降5.7%
Speaker Change: The non-public transport and related components are still the main sources of income. In the third quarter, the income was US$27.5 million, down 9.2%. In the first nine months, the income was US$8.1 million, down 1%.
Xueqin Dong, Kewa Luo, Xiaoming Hu, Unknown Attendee
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Speaker Change: This year, our revenue temporarily declined as a result of changes in the sales model for our fully electric off-road vehicles. Third quarter revenue was $29.9 million, decreased from $36.4 million in the same period of 2023.
Speaker Change: While nine months revenue totaled $89.8 million, a decrease of 5.7% year over year. Off-road vehicles and associated parts remain the primary revenue source in Q3.
Contributing $27.5 million down 9.2% from the prior year quarter.
Speaker Change: While revenue from this segment for the first nine months slipped 1% to $81.5 million.
Speaker Change: To address these challenges, the new management team has developed a detailed growth plan for 2025 to 2029, recently approved by the board, which aligns with our current position.
Speaker Change: With disciplined execution, we are confident that all business segments are well-positioned for stronger growth and new opportunities.
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Speaker Change: is the leader of attractive market share company, Kanidi, we will continue to profit and grow in technology innovation, product upgrading and payment channels Let us forward our innovation to improve market share
The all-electric off-road vehicle segment holds tremendous potential for CANDY.
Speaker Change: Over the past few years, we have established a strong foundation, advancing our technology, expanding product offerings, and strengthening our market presence.
Speaker Change: Our golf carts and other models are not only highly competitive but also well-received by consumers.
Speaker Change: and the recent launch of our NFL branded golf cards featuring all 32 NFL teams and sold exclusively at Lowe's has further elevated the candy brand.
Speaker Change: Looking ahead, we will continue leveraging our technological innovation, enhancing our product portfolio, and strengthening our distribution network to expand our market share.
Speaker Change: In the current complex global economic environment, we are aware of the market's concerns about trade friction. For this reason, the company's management team has made corresponding arrangements in the 2025-2029 development plan.
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Speaker Change: These localized production sites will bring our products closer to the mid-range market.
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Amid the complexity of today's global economic landscape,
We remain mindful of the pressures.
Speaker Change: from Trade Tensions. Our 2025 to 2029 growth plan incorporates proactive measures, including establishing U.S.-based production lines for golf carts, utility vehicles, and lithium battery.
Speaker Change: These facilities will enable faster delivery, improved after-sales support, and closer proximity to key North American markets.
Speaker Change: In parallel, we will continue to expand internationally, targeting growth in Southeast Asia, the Middle East, Europe, and other regions, supported by a competitive and diversified product portfolio.
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Speaker Change: While dealing with the changing international market, we have also clarified the layout of the domestic market.
Speaker Change: The first is to expand it in the smart travel sector with smart travel gradually becoming the mainstream advice of Chinese consumers the market is extremely promising We shall catch all the big business opportunities in this area strive to take its lead in the smart travel sector
Speaker Change: We will make full use of the manufacturing advantages of smart power generation equipment and the experience of power generation operation to provide smart power generation equipment and power generation operation services to domestic power generation giants, and strive to become the first-class smart power generation equipment supplier and power generation operator in China to promote further growth in company performance.
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Even as we adapt to changes in international markets,
Speaker Change: To start, we are targeting the fast-growing smart mobility sector, which is really taking off with Chinese consumers.
Speaker Change: and we are aiming to build a strong presence there. On top of that, we will use our expertise in manufacturing battery swapping equipment and running battery swapping operations to support major providers in China. Our goal is to position Candy as a top supplier and operator in China's battery swapping market.
paving the way for even more growth.
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截至2024年9月30日,公司持有2.6億美元的現金及現金等家務,受限制現金,短期投資和定期存款,為推動戰略目標的實現奠定了堅實基礎。
此外公司已通過股份回購計劃回購了
Speaker Change: 786 shares repurchased at an average price of $2.49 underscores our confidence in the company's future.
Speaker Change: In the future, we will focus on high-efficiency execution and a stable strategy to support continued growth and create value for shareholders.
Speaker Change: According to a clear plan and a solid foundation, we are ready to welcome the challenge and continue to work towards a set goal.
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Speaker Change: As we move forward, we will stay focused on effective execution and sound strategies to support steady growth and shareholder value. With a clear plan and solid foundation, we are prepared to navigate challenges and make progress toward our goals.
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Speaker Change: Now we will start the Q&A session. I and Xueqin Dong will answer your questions. Mr. Kewa and Mr. Lim will translate. Please ask your questions.
Speaker Change: Now we will move on to the Q&A session. Together with Chairman Dr. Xueqin Dong, I will answer your questions. Ms. Kewa and Mr. Alan Lin will provide translation.
Please go ahead and ask your questions.
Operator, please go ahead. Thank you.
Speaker Change: 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 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.
Speaker Change: You may press star 2 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. One moment please while we pull for questions.
Xueqin Dong, Unknown Attendee Xueqin Dong, Unknown Attendee
Thank you for joining us. Thank you. Thank you.
Thank you for joining us. Thank you. Thank you.
Thank you for joining us. Thank you. Thank you.
Thank you for joining us. Thank you. Thank you.
Thank you.
Speaker Change: Our first question comes from the line of Mike Pfeffer with Oppenheimer and Company. Please proceed with your question.
Thank you for joining us. Thank you. Thank you.
Thanks for taking my questions.
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Speaker Change: A few weeks ago you had the back-to-back press releases on the same day announcing the generational restructuring of the Candy, C-Suite, and Board of Directors.
Speaker Change: and the second one was titled Candy Technologies Board Approves Several Major Initiatives and New Management's 25 to 2029 Projected Growth Plan.
Speaker Change: For a dozen years, shareholders have been asking management to accept the norm of the vast majorities of the U.S. NASDAQ-listed companies
Speaker Change: and begin giving guidance as well as longer-term forecasts, both integral if a company has any hopes of attracting accredited stock analysts. The five-year detailed forecast, particularly with the disclosure...
Speaker Change: of previously unknown five additional profit centers was a pleasant surprise. Maybe you could translate that and I'll continue, please.
Okay.
Speaker Change: A few weeks ago, within a week, the company released two news articles. The first one was about the reorganization of the company's team and board. This was a big surprise. The second one was even more surprising, because it was the first time in more than ten years that the company released an article to the market.
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Speaker Change: Douglas Goldstein, CFP®, is the director of Profile Investment Services and the host of the Goldstein on Gelt radio show.
Speaker Change: The three prior financings since inception were done using a single, independent investment banker who retained two to three transactional brokers. The difference is that sell-side analysts work...
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Maybe you can just translate that.
Thank you very much.
Speaker Change: We haven't had a lot of attention from analysts because in the past we have never hired a full-fledged analyst.
Xueqin Dong, Kewa Luo, Xiaoming Hu, Unknown Attendee
每一次的这个融资呢,都是通过几个固定的每一次的融资呢,都是通过几个固定的
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Speaker Change: The fact that you put out five-year forecasts is comforting to analysts, brokers, clients, savvy investors, compared to only one year if a company misses its guidance the first year. The analyst doesn't, and investors are not too concerned and look forward to the next year. With this background, a few questions.
Go ahead, please start your question. Okay, so...
Q&A
Speaker Change: In that, you put out this five-year forecast without giving quarter-to-quarter and full-year revenues and earnings guidance. It creates suspicion that the longer-term guidance is just pure guess. Is it the company's intention to give full-year guidance for full-year 2024 and subsequently for Q1 2025 and the full year?
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Speaker Change: The development plan for 2025-2029 for the new management layer has been seriously studied and repeatedly discussed.
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Speaker Change: This plan shows our management team's confidence in the company's strategic direction and helps everyone understand our short-term and long-term goals for the growth plan for 2025-2029.
Speaker Change: As for the guidance for the New Year, we will reveal the facts according to the company's development situation.
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Speaker Change: Thank you for your questions. The 25-29 projected growth plan prepared by the new management was actually done with careful research and rounds of multiple discussions internally, taking into consideration of various factors such as the external environment of the economy and the market, and we developed the trends, as well as our own edges, advantages, and existing resources.
Speaker Change: This plan demonstrates our management team's confidence in the company's strategic direction and it helps the investors to understand the company's short-term plan and long-term plan and it goes in the 25 to 29 growth plans and we try to present the plan as transparent as possible.
Speaker Change: As for the Q1-25 and then the whole year plan and the guidance, we will disclose in due course based on the company's development and our own assessment.
Thank you.
Speaker Change: I'd just like to add, in addition to earnings and revenue guidance, investors would receive a wealth, a company would also announce off-road vehicle unit delivery guidance, or at least breakout unit sales each quarter in the earnings announcement. That information was usually historically published in 8Ks and 10Ks. Anyway, thanks for your time.
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另外就是他也想问,除了就是对收入和盈利的这个预测的话, 公司是否也能够提供我们非公路用车,非公路车的季度的交付量的一个预测, 或者至少在我们的财报当中,就是明确的分季度的提供一下销售的销售数据, 这个信息也是投资人很想知道的,通常这些数据都会在以前的8K和10K文件里面披露。
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Speaker Change: Okay, this will be disclosed based on the company's development facts.
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Speaker Change: Thanks for your questions. We will also disclose such information in a timely manner based on the development and committee's assessment. Thank you.
[inaudible]
Thank you for joining us. Thank you. Thank you.
Thank you for joining us. Thank you. Thank you.
Speaker Change: Thank you. Our next question comes from the line of Arthur Porcari with Corporate Strategies Incorporated. Please proceed with your question.
Thank you.
Arthur Porcari: Before my questions, I want to welcome the new management and also thank Mr. Hu for a 17-year...
Quasar retirement from chairman.
Arthur Porcari: board and 20 years of executive service and leadership to CANDI and also a true premier of all electric vehicles in China.
Speaker Change: On to current business. Next month, Candy will have its annual shareholders meeting for the past 2023. In fact, the 2023 proxy materials have now started to arrive. While most of the issues are boilerplate, one in particular is not boilerplate.
Speaker Change: Management is asking shareholders to vote to allow a new 10 million shares be authorized to reload its 15-year stock auction plan as the prior active 2008 plan had finally been fully out activated.
Speaker Change: Employee stock options are usually issued and authorized by shareholders as rewards for outstanding performance. In a public company, a good bit of that performance has to do with stock appreciation.
Speaker Change: I'm curious, now here's my first question. Does management really expect any shareholders to happily reward management by voluntarily providing a possible 12% increase in shares while the stock is trading at its 15-year low, down 94% of its all-time high?
Speaker Change: I can assure you shareholders will not be happy, particularly since the company's product distribution base is at an all-time and growing rapidly.
Speaker Change: at all-time high growing rapidly and the company's at its strongest cash and fundamental position of all times.
Speaker Change: This connect can only be blamed on management, not operationally, they're doing a great job there, but public company management of a NASDAQ company.
Kewa Luo: I'm sorry I left you with a lot there, Kewa. Hopefully you can carry it.
Kewa Luo: Before we start, I would like to thank Mr. Hu for his 17 years of contribution to the company and his leadership.
Speaker Change: He said that he saw the company's information was disclosed at the shareholders' meeting. The company will...
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希望股东批准授权一千万
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Speaker Change: I'm very, very curious. This is my first question. Is the management level really...
Speaker Change: 我们会希望股东会非常乐意地去主动地去同意当前股价在大幅低于现金值 以及股东权益的情况下 elect all portfolio and go bias all so different 批准这项可以导致双击币利率一定豁出去 全息时的计划吗
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Thank you.
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Speaker Change: Okay, over the past three conference calls, I and other U.S. market professionals have addressed this.
Let's get on to the agenda.
Speaker Change: Well, book value is $5 a share, but assets at work probably.
Speaker Change: Basically, what I'm going to do here, since you've answered a lot of questions in the opening, which I congratulate you all, so that's new. Usually the opening goes right into questions, and we don't get an overview from management. We got it this time, so that's great.
[inaudible]
Speaker Change: Go ahead and tell them that and then I'll go into some of the question areas.
会议上我们的开场白非常的
Unknown Speaker, Xueqin Dong, Unknown Attendee
Go ahead with your question.
Speaker Change: Okay, well a lot of this is going to be basically just informational purposes one more time because like I said a lot of questions are answered but I'll try to make this quick. For the past three years investor conference call the issue was raised the can you should take advantage of this foolish selling at massive discounts
I should say the past three conference calls.
Speaker Change: Unknown Speaker This counts the cash-in-book value by filing an F-14 stock tender for at least 10 million shares. The price initially discussed in the prior calls was $1.5 million.
Speaker Change: put in around the $3 area. On each occasion, a response by management has been to be effective. We'll look at that, but nothing further.
Speaker Change: If management wants to fix this and send a signal to Wall Street, do the right thing and create this a win-win-win for all loyal but severely penalized shareholders and incentive for all shareholders to be in favor of the management stock option request.
Go ahead and put this back on.
Please finish everything, install your questions.
Okay.
Speaker Change: You want me to start over again or just take it from there? No, what's your question?
Speaker Change: It is I said basically this is more for informational purposes because you've answered a lot of questions already so there doesn't really have to be a question right there yet.
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Speaker Change: Okay, what I'm going to suggest is truly a win-win-win for all loyal but severely penalized shareholders and an incentive for all shareholders to be in favor of the stock auction request they're asking for in this process.
Speaker Change: Now is the time to do something proactive, accretive to all shareholders, and the company valued, and that's to quickly file the...
Speaker Change: F14 Tender Offer at $2.50 to $3.00 a share using only 10% of Candy's cash or even bank borrowing. A few years ago Candy had bank borrowings as high as $75 million at the same time only $50 million in cash.
Pass that on to them and then I'll.
Xueqin Dong, Kewa Luo, Xiaoming Hu, Unknown Attendee
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Speaker Change: Okay, the win for the shareholders would be an immediate double in stock price appreciation plus free Wall Street publicity which will bring the undervalued focus on candy by the immediate huge stock percentage jump showing new investors just how undervalued candy really is.
Speaker Change: Secondly, for the company, you want to go ahead and pass that to them.
Speaker Change: Okay, first of all, the first benefit is for the shareholders. After such an operation, the stock price will double immediately. At the same time, it will also get the attention of Wall Street and will also get a certain amount of publicity. Especially for new investors, it can be seen, it can make everyone realize that the stock price of Coinbase is so underestimated.
Speaker Change: For the company, with its current $5 share book value, every share bought by the company at $2.50, or half the price of the book value,
Speaker Change: Not only drops the outstanding share count, but it also increases the remaining shareholders' equity for each additional remaining shares by $2.50 a share.
Speaker Change: For the company, the advantage is that the current value of each share is $5. If the company repurchases each share at $2.50, it will not only reduce the number of shares in circulation, but also increase the rights of each shareholder by an additional $2.50.
Speaker Change: Okay, and finally for management and the company. If the company buys back 10 million shares, then the 10 million options they're requesting would initially show a 12% reduction in the issued outstanding, but it will ultimately flatten out to no more shares than we have today.
Thank you for joining us. Thank you. Thank you.
Xueqin Dong, Kewa Luo, Xiaoming Hu, Unknown Attendee
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Will the company finally pay attention?
The waves of Wall Street.
Speaker Change: It seems like that's what they've forgotten in this company. We've been here for 17 years, undervalued the whole time.
Speaker Change: And so my question is, will they finally pay attention to Wall Street and get U.S.
Advisors
Speaker Change: and I don't mean Petra Co. I'm sorry to say, get U.S. advisors who can help them along that line. I can give them some advice as well. I've been with the company 17 years as you well know and 51 years as a Wall Street professional.
That's my question, and that's all I have to say.
Speaker Change: I've talked so much, I just want to ask the company in the end The company has been listed for 17 years, and the stock price has been in a low position for a long time Will the company really come in and listen to what Wall Street needs? Can you really find and listen to an American consultant's opinion? This is not an objective opinion that the company has always heard I also, as a
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Thank you for joining us. Thank you. Thank you.
Thank you for joining us. Thank you. Thank you.
There was a question in there.
Thank you for joining us. Thank you. Thank you.
Unknown Speaker
感谢您的问题啊 Thank you for your question.
Speaker Change: First of all, we would like to talk about the equity incentive plan. Equity incentive is an important way for us to attract, retain, and encourage excellent employees. The combination of the purchase and equity incentive plan can, to a certain extent, balance the shareholders' and the company's interests.
Xi Jinping, Kewa Luo, Xiaoming Hu, Unknown Attendee
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Speaker Change: As for the next action plan, we will ensure that the financial health and market conditions are appropriate, and consider the best way to implement it with the company's shareholders, including the stock purchase you mentioned.
Unknown Speaker
Speaker Change: for the U.S. Embassy in the Philippines. For more information, visit this website. For more information, visit this website. For more information, visit this website.
Speaker Change: First of all, thank you very much for your sharing and your thoughts in the audience.
about your questions we will address them all together.
Speaker Change: Unknown Speaker First of all, regarding the Equity Incentive Plan, it is an important approach for us to attract, retain, and motivate our outstanding employees. The combination of the Shared Buyback Program and the Equity Incentive Plan can balance the interests of the shareholders and the company to a certain extent.
Speaker Change: Basically to ensure the rationality of the equity structure and the optimization of the numbers of the outstanding shares.
Speaker Change: We understand that some shareholders are concerned about the banditry effect, so we will continue to work hard to balance this and maximize the shareholder value.
Speaker Change: Regarding the tender offer or the share buyback program you mentioned, we understand the expectation of many investors and shareholders.
Speaker Change: Management did mention in the past that we will carefully consider the possibility of the share buyback and the repurchase because such measures need to be combined with the market conditions.
our long-term development strategy, and then the capital efficiency.
Speaker Change: At present, we are cautious about every investment to maximize the long-term returns for the shareholders of the company.
Speaker Change: As for the further action arrangement, we will consider executing in the most beneficial way for the company and the shareholders, including the possible share buyback while assuring the financial health and appropriate market conditions.
Thank you.
Speaker Change: Actually, I said I was finished. One last comment. I'm glad to hear that Mr. Hu was involved in that call, that response right then.
But seriously,
Speaker Change: It doesn't get any cheaper than this. I've been in this business 51 years and I've never seen a stock get down to where it was trading at 40% of cash in a bank.
Not a company that was effectively going out of business.
So I hope you will take my advice.
Speaker Change: to at least further discuss the situation outside a conference call. I can make the introduction to people that can help you with this. Hope you will take that advice.
Speaker Change: There's no reason for this stock to be trading in a 15-year low while everything else is closer to its all-time high.
Speaker Change: Thank you very much. And again, thank Mr. Hu. He's been a great pioneer with this company over the years.
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Speaker Change: Innovator of the Year in China for EVs in 2014. K-17 was the Car of the Year for all of China 2015. And Candy was the first company in China to ever do 25,000 units in one year back also in 2015. So it has a heritage of being very successful in the past. Hopefully we'll continue it. Thank you.
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现在公司股票是15年最低, 而很多其他的公司是...
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Thank you. Operator, we are ready to take next question.
Speaker Change: Thank you. Our next question comes from the line of Frank Blatterman, private investor. Please proceed with your question.
Thank you for joining us. Thank you. Thank you.
Speaker Change: Yes, and a good evening to those in China. My question is, is there anything in the contract that dissolves the joint venture between Candy and Geely that prohibits Candy from entering the electric car business now or in the future?
That's my question.
Speaker Change: My question is, in the contract between Condi and Geely to disband the joint venture company, are there any regulations prohibiting Condi from entering the electric car industry again?
没有这个条款 No, we don't have this regulation.
Xueqin Dong, Unknown Attendee Xueqin Dong, Unknown Attendee
Thank you very much.
Thank you.
Speaker Change: Thank you. Our next question comes from the line of Steve Miller, Private Investor. Please proceed with your question.
Unknown Speaker
Speaker Change: Morning Kewa, the bulk of my questions deal with your two October press releases and I'll sort of work my way through those with questions.
Unknown Speaker
Speaker Change: In your October press release, you made reference to autonomous driving technologies and projected that China's ride-hailing market is expected to experience significant growth.
Speaker Change: He then said that CANDI will expand its presence within the smart mobility business industry, a phrase I note you included again in today's press release, by your plan to acquire an established company in, excuse my pronunciation, Hangzhou Honghu, I'm going to go ahead and translate that.
Unknown Speaker 1. Okay.
Speaker Change: I'm sorry, yeah, I'm sorry. Please say one more time you referenced the press release that we issued in October, right?
Speaker Change: Yes, you issued two press releases in October. They made reference to autonomous driving technologies.
and also ride hailing, etc.
Thank you for joining us. Thank you. Thank you.
Speaker Change: And you basically said in those press releases that they would be facilitated by your acquisition of Hengzhu Honghu.
Thank you for joining us. Thank you. Thank you.
Speaker Change: Okay, the question is, when we were in October, we released two pieces of news that talked about autonomous driving, and this technology, and this technology, and this development, when it will be, will be used by our Jiangyao and Hangzhou, Henghu,
Xueqin Dong, Unknown Attendee
Thank you for joining us. Thank you. Thank you.
Speaker Change: Okay my question, my question is explain going forward what Candy's business will have to do with autonomous and ride-hailing and examples would be helpful and how if at all is Hangzhou Honghu currently involved in those areas?
Unknown Speaker
My question is, how will Conti do in the future?
Speaker Change: will be developing one is what we call automatic driving and the other is ride hailing
Unknown Speaker Okay. Okay.
Xiaoming Hu, Unknown Attendee
Speaker Change: Wang Yueche, Wang Yueche, Wang Yueche, on how we will develop in these two areas. And then, how will the Hangzhou Honghu company we are going to buy together support, how will it be in the middle,
Xueqin Dong, Unknown Attendee
Thank you. Thank you.
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Unknown Speaker
Speaker Change: So, first of all, about our potential target, Hangzhou Hanghou, the car-hailing platform. Right now, the company is in the stage of due diligence.
Speaker Change: to understand more about the company of this target. The progress is going smoothly, however, there's no written argument or contract in place yet. So we have no, too much information to disclose for the time being. Thank you.
Alan Lin: Okay, Alan, in the October press releases, you made reference that Candy's business would have something to do with autonomous and ride-hailing. Is that correct?
Thank you for joining us. Thank you. Thank you.
Speaker Change: In October, you mentioned that your company will have business in the field of automatic driving and online cars. Is this correct?
Thank you for joining us. Thank you. Thank you.
Xueqin Dong, Unknown Attendee
Thank you for joining us. Thank you. Thank you.
Speaker Change: Do I just represent that correct with a plan in involving the Autopilot and then the Calendar Platform for businesses?
Speaker Change: In those press releases, you provided projections for what you call your smart mobility solutions business.
Speaker Change: and it went from annual revenue projected of $24.37 million in 2025 to
Hmm...
A higher number by 2029.
Speaker Change: And so I guess my question is what exactly is the business that Candy will be involved in that will be generating those revenues and profits that you mentioned in those releases?
Speaker Change: And can you provide greater color how you arrived at those numbers considering that currently you have none of that business?
I just want to know, in this news, will China...
Unknown Speaker, Xueqin Dong, Unknown Attendee
Speaker Change: What kind of business will you do and what exactly will you do to enter this industry? Can you explain to me how the company will develop this smart travel business and what exactly will you do?
Unknown Speaker
Hello everyone!
Speaker Change: We have served more than 100 startup companies in Honghu, a target company in Chatan, covering more than 200 cities across the country. We handle millions of orders every day.
Unknown Speaker, Xiehong Wu, Kewa Luo, Xiaoming Hu, Unknown Attendee
Speaker Change: So basically, these smart mobility solutions business plan includes the MAP, the smart inspection system, the customer service support, the resource integration, and the operation management, as well as the driver management, etc. It basically provides a one-stop technology and operation service for all the scenarios for those commuting and transportation companies.
Speaker Change: So far, Hong Kong has served nearly a hundred of the transportation companies covering more than 200 cities across the country.
Speaker Change: processing over millions of the orders every day and helping millions of the drivers to have their works.
Speaker Change: By coupling everything from driver screening to activity guarantee, it ensures the safety and reliability of those transportation services.
And what is the status of the Hung Hu acquisition?
Thank you for joining us. Thank you. Thank you.
Unknown Speaker
但還是沒有簽署任何正式的書面協議,所以暫時還不能披露更多的資訊。
Unknown Speaker
Speaker Change: I will believe that we answered that question at the beginning that led us to the phase. So we are in the due diligence stage at the moment for this target home group. The process goes smoothly. However, there is no imminent written document or contract in place yet. So at the moment, we cannot disclose further information. Thank you.
Speaker Change: Why have we seen no information about the purchase in the media or even statements from Hong Kong that they've even agreed to be acquired or will have anything to do with candy?
Speaker Change: Why didn't I see any information on the public website or the media disclosing that they agreed to be acquired by Condi or any news related to Condi?
Unknown Speaker
Unknown Speaker
Speaker Change: Currently, since our due diligence is being processed, it's a quiet period for both sides. So that's why neither side has disclosed too much information about this deal.
Speaker Change: Okay, and then did you indicate that until a purchase does go forward, there's currently no other contractual relationship between Candy and Peng Hu?
Speaker Change: Can you explain that before the political contract was signed, there was no cooperation between Condi and Honghu?
Thank you for joining us. Thank you. Thank you.
Yes, I can understand that.
Yes, your understanding is correct, thank you.
Speaker Change: Okay and then in the one of the October press releases you said Candy will be focusing on expanding two main business lines, electric off-road vehicles and lithium battery production in North America, Europe and at least that you said Southeast Asia.
Speaker Change: From what I've read about lithium batteries, technology is quickly changing.
Speaker Change: What gives you the confidence that you can compete with others on lithium battery production, that you can develop new technology, especially with larger companies with greater resources that have research and development?
Thank you for joining us. Thank you. Thank you.
Speaker Change: In the news in October, I saw that the company said that the next step will be in the non-public transport, in the battery, will make an effort.
Unknown Speaker, Xueqin Dong, Unknown Attendee
Thank you for joining us. Thank you. Thank you.
Unknown Participant
Speaker Change: First of all, based on China's excellent cost-benefit ratio, this is one of the reasons. Second, Kandi's products have been recognized by consumers in the U.S. market. Our products are very competitive.
Unknown Speaker, Xueqin Dong, Unknown Attendee
Traditional giants are also
Speaker Change: they can ensure our production being you know our progress you know in a proper order
Speaker Change: Second of all, our products are well-received in the U.S. market, and they are competitive even to some other big brand products. Other from the U.S. market, like European and Southeast Asia region, we have started also our sales in those areas as well. So we believe that, you know, our sales and production will be going smoothly.
Unknown Interpreter
Speaker Change: Your press release said that in 2025 you plan to invest 100 million in the U.S. to establish a lithium battery manufacturing and battery pack facility.
Speaker Change: Will you be exporting those products out of the United States to other locations around the world?
Speaker Change: You also mentioned in the news that in 2025 you will invest in...
Xueqin Dong, Unknown Attendee
Unknown Speaker, Xueqin Dong, Unknown Attendee
Unknown Speaker 05.00.00
Speaker Change: Do you have any plans to export to other European cities and regions?
Thank you for joining us. Thank you. Thank you.
Unknown Speaker
Unknown Speaker, Xueqin Dong, Unknown Attendee
Unknown Speaker, Xueqin Dong, Unknown Attendee
Speaker Change: As for the battery factory, we're going to invest in U.S. Primarily, the plan is to supply to those of the North America market because of our needs and ourselves. So basically, and for other regions of U.S. and North America, the primary plan is to supply those products with the better tech produced in China.
Speaker Change: Okay, and then over the years, your battery swap revenues have been minimal, to say the least.
Speaker Change: We've heard of no alliances that Candy has with major car manufacturers or ride hailing firms anywhere.
Speaker Change: Yet in your October press release you gave projections of sales
Kewa Luo: as well as revenues and stated that CANDI aims to establish itself as a strategic supplier and a leading force in this sector. Do you want to go ahead and translate that, Kewa?
Kewa Luo: Okay, in the past few years, the company has not mentioned much about our telecommunications technology.
Unknown Speaker, Xueqin Dong, Unknown Interpreter
Xueqin Dong, Kewa Luo, Xiaoming Hu, Unknown Attendee
Go ahead.
Speaker Change: Okay, so my fellow shareholders are asking, what makes you think that your battery swap business is going to suddenly change when it hasn't in the past? What are your projections based on? What are we not seeing or being told?
Thank you for joining us. Thank you. Thank you.
Speaker Change: So, me and a lot of investors I have met, we are all thinking about what makes you think that you have never left any footprints in this market and all of a sudden you are
we are all blessed to be here.
Xueqin Dong, Kewa Luo, Xiaoming Hu, Unknown Attendee
首先我想說的是康迪科技集團在幻電領域
Speaker Change: China is already experiencing the popularization of mobile electric market in some cities. For example, Chongqing. That's why we think this is the best time for the new mobile electronics market to enter.
Xi Jinping, Kewa Luo, Xiaoming Hu, Unknown Attendee
Unknown Attendee
Unknown Speaker Okay. Okay.
Speaker Change: So first of all, as you may know, our company, Candy, has been involved in the battery swap business for a long time. We have accumulated a lot of experiences and knowledges and as well as the patents from the last
Unknown Attendee Unknown Attendee Unknown Attendee
Speaker Change: Unknown Speaker And then we also are in touch with a few leading companies in the business in the field. We believe that we will have quite a material market share in the upcoming years.
Speaker Change: Unknown Speaker And that's based on our, you know, our expectation as well as our analysis and experience in the market and the discussion with our peers.
Thank you.
Speaker Change: Is the 300,000 government accredited ride hailing program in China from four years ago that you were involved with, is that still alive? Is it a factor in your projections? Isn't that going to expire in 2025?
Unknown Speaker
Speaker Change: We mentioned before that the 300,000 government-certified train network project is still in progress. Will it end in 2025, as mentioned 14 years ago?
Speaker Change: Does it have anything to do with the five-year plan we are working on now?
Speaker Change: We will continue to promote these contents based on our 2025-2029 development plan. Please pay attention to the company's further progress. The above is the new project and the above is the plan.
Unknown Speaker
Speaker Change: So, primarily, our upcoming business operations and models will follow our 25 to 29 project goal plans. So, please stay tuned for any further updates and development. Thank you.
Speaker Change: Okay, and is the battery swap business going to stay in China? And will the units be customizable for other for for a wide variety of different manufactured vehicles?
Unknown Speaker, Xueqin Dong, Unknown Attendee
Unknown Speaker 00.00.00.00
Speaker Change: Unknown Speaker 1, 2, 3, 4, 5, 6, 7, 8, 9, 10.
因为我们的设备是出售给换电的运营商的,不是给生产的汽车公司的。
Speaker Change: And on average, it seems like your revenues or your projections are conservative.
Speaker Change: that they mainly average around 6,000 per vehicle, but you're still able to keep a 30% margin. Does that sound about right?
Thank you for joining us. Thank you. Thank you.
Speaker Change: In the same news in October, President Xi finally provided levee assistance for his broker in the US, with funds from the secret service of Russian government. Ms. Liu introduced a new approach her broker participated in, it means she advisors the development of the complex infrastructure designed by the Russian government and the 80 assets will be ȹnoborgan Charter project. Outside the country, the Charter companyfang has Poland,
Unknown Speaker, Xueqin Dong, Unknown Attendee
Unknown Speaker 0
Speaker Change: These income is really conservative. The average price of $6,000 includes all kinds of high and low-end vehicles. An average of 30% profit is expected to be achieved.
Unknown Speaker
Xueqin Dong, Unknown Attendee
Speaker Change: Okay, and those projections for those off-road electric vehicles, I assume that is worldwide and not only in the U.S.?
Thank you for joining us. Thank you. Thank you.
Unknown Speaker, Xueqin Dong, Unknown Attendee
Thank you for joining us. Thank you. Thank you.
This is for the whole world.
[inaudible]
Speaker Change: The figures we mentioned are for the overall sales in total, not just focused on the U.S. market, but overall.
Speaker Change: Okay. Okay. And then finally, again, from your October press release, you had indicated that you plan to invest $30 million in 2025 to establish a production line in the U.S. for various off-road vehicles, etc. Do you plan to build that from scratch or do you plan to lease a facility and then customize it?
Thank you for joining us. Thank you. Thank you.
Speaker Change: Unknown Speaker 005. I'm ok. Thanks. Thanks. Bye. Unknown Speaker 05. Bye. Bye. Bye. Unknown Speaker 05.
还有继续就是在这十月份的新闻里面呢,你提到要会...
Unknown Speaker, Xueqin Dong, Unknown Attendee
Thank you for joining us. Thank you. Thank you.
Speaker Change: At present, we are only considering the option of working in Dar es Salaam. As for how, we will have to consider the support of the policy, infrastructure, labor costs, and other related factors before we can make a final decision.
Unknown Speaker
Unknown Speaker 05. . . . . .
Thank you for joining us. Thank you. Thank you.
Speaker Change: So basically our preliminary plan for the site location will be selected around a Dallas region in Texas, but then the whole setup will be based on the multiple considerations such as the policy report of the local government, the infrastructure, the labor cost, etc. So right now we don't have a concrete plan of the setup yet, and based on management including evaluation, we will announce it after you get finalized. Thank you.
Speaker Change: Okay, and until that facility is ready, will all U.S. production be handled by your partner Hartford in Taiwan?
Speaker Change #100: When the US facilities are completed, will we still rely on our Huffer, HuffTofu company in Taiwan to produce them?
Xi Jinping, Kewa Luo, Xiaoming Hu, Unknown Attendee
Unknown Speaker
Speaker Change #101: Once our site in US is finalized, then we will still consider the cost and the policies and other different infrastructure and the supply chain and the logistics from the two sites, from profit in Taiwan and then the set of our taxes.
Speaker Change #102: Okay, I guess I'm not, I don't understand. So it's going to take a while until the... Yeah, we will basically consider multiple, you know, factors, as I mentioned, the costing, the logistics, the infrastructure, and then the supply chain, and then other factors where we consider both sides. So it's not like we have, we don't have the very final determination yet. And we'll announce later on, you know, when the time is right.
Speaker Change #103: Okay, my questions obviously derive from the fact of the possible or pending tariffs on Chinese manufactured vehicles, including golf carts.
Speaker Change #104: And on previous earning calls, you had indicated that 90% of the golf carts were manufactured by Candy in China.
Speaker Change #104: So what I'm wondering is that now that I understand that from your, in fact, I think you didn't put out a press release, that Taiwan is now manufacturing candy off-road vehicles.
Speaker Change #104: Are they manufacturing that 90% or are they getting those parts from China?
Thank you for joining us. Thank you. Thank you.
Thank you for joining us. Thank you. Thank you.
Speaker Change #105: Okay, we talked about the fact that 90% of our non-public services are produced in China.
Thank you for joining us. Thank you. Thank you.
Thank you for joining us. Thank you. Thank you.
Thank you for joining us. Thank you. Thank you.
upbeatdogg.com
Thank you for joining us. Thank you. Thank you.
Unknown Speaker
We have 40% cooperation in Taiwan and 60% in China.
Unknown Speaker
Speaker Change #105: So for the process flow right now, it's basically around 40% is done at Hartford, and then the rest is taken care of by the county, including our China facilities.
Speaker Change #106: So, is that, I guess my basic question is, can you assure shareholders and potential investors that the planning that you've done to date, that is making this arrangement with Hartford in Taiwan, pending the completion of the facility in the U.S.
Speaker Change #106: that it's not going to have a significant, that if tariffs are, in fact, or additional tariffs are imposed, that those won't be a significant negative factor to your business going forward.
Thank you for joining us. Thank you. Thank you.
Speaker Change #107: I have a question. I was just wondering if you could...
Xueqin Dong, Kewa Luo, Xiaoming Hu, Unknown Attendee
Xueqin Dong, Kewa Luo, Xiaoming Hu, Unknown Attendee
Thank you for joining us. Thank you. Thank you.
Unknown Speaker, Xueqin Dong, Unknown Attendee
Speaker Change #108: We will use Taiwan's products to develop it. After the US bases are constructed in the future, it will be produced in the US, and will not be affected by tariffs.
Unknown Speaker Yeah, later in the interview.
Speaker Change #109: Okay, and then according to my own due diligence, and feel free to correct me if I'm in error, Hartford, your partner in Taiwan, has exported one shipment of golf carts, and that was back on August 13th.
Speaker Change #109: The last shipment of golf carts from Candy Electric Vehicle, Hainan Company, arrived on October 20th.
Speaker Change #109: The last Twitter post from either of Candy's Twitter sites was on October 29th.
Do you want to go ahead and translate that, Kewa?
Speaker Change #110: I just want to get this right. You asked that based on your due diligence, you saw the last shipment from Hartford to the U.S. was in August 13. And then from Kennedy, you saw shipments.
Speaker Change #110: from August 20. And on the Twitter, you saw there is a shipment coming on October 29. No, let me let me try again. So Hartford has has sent one shipment to the US, and that was on August 13.
Speaker Change #111: Okay and then the last shipments from China from Candy Electric Vehicle Hainan Company who sends most of your golf carts.
Those arrived on October 20th.
Okay. Okay.
Speaker Change #112: And what about, you said, on the Twitter? I did. Well, then I also added, I noted that the last Twitter post from either of Ken's sites was back on October 29th. Today is, what, November 18th? So, go ahead and translate that for us.
Speaker Change #112: Okay, he said that the next thing he did was his own research, and he didn't know if it was correct. He said that he saw that the last shipment from Haftar to the U.S. arrived in the U.S. on August 13th.
Unknown Speaker 0 Unknown Speaker 1 Unknown Speaker 2
Speaker Change #113: My first question is, why has there been only one shipment from Hartford and that was over two months ago?
My question is, why...
Thank you for joining us. Thank you. Thank you.
Unknown Attendee Unknown Attendee
Unknown Speaker
So the shipment, you are...
Speaker Change #113: Unknown Speaker That time, as you may know, the tariff policy was not really finalized until the late September. So the shipment you mentioned was just for trial production purposes because it takes multiple rounds of adjustments in terms of the quality control, the compliance, and different other things.
Speaker Change #114: Unknown Speaker 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20,
Speaker Change #115: OK, and then US imports apparently have paused because the last one was back on October 20th. Are sales in the US being made from your existing inventory in the US?
Unknown Speaker
而你们现在美国的销售就是从上一次进来的这个货柜里面的
Xueqin Dong, Kewa Luo, Xiaoming Hu, Unknown Attendee
Thank you for joining us. Thank you. Thank you.
Thank you for joining us. Thank you. Thank you.
Thank you for joining us. Thank you. Thank you.
Unknown Speaker
Can you repeat that, Kewa?
Speaker Change #116: Weader asked, I would like to ask about whether the products we sell now are located in competiton with previous products.
Speaker Change #116: Because he said he hasn't seen any new customers coming in.
Thank you for joining us. Thank you. Thank you.
Unknown Speaker
Speaker Change #117: So, the shipment you mentioned, actually right now, the sales of that particular product is still underway, along with all other products of the inventory.
Unknown Speaker 0.0.0.0
Speaker Change #118: I'm sorry, I don't understand. So, so... I can't believe it. Sounds like that Xueqin is on the way.
Okay. Thank you.
Speaker Change #118: And speaking of existing inventory, last year I know you had a fairly high inventory.
Speaker Change #119: that you reported. Can you give us any kind of an update on where your inventory levels are at the moment?
Thank you for joining us. Thank you. Thank you.
Unknown Speaker, Xueqin Dong, Unknown Attendee
Unknown Speaker
Speaker Change #120: So, for the inventory levels, I think you'd be best if you can refer to the financial statements that are included in the earning release of the 6K. They can give you the most accurate information.
Speaker Change #121: Okay and can you give us a sort of a status update on the proposed Candy America spin-off IPO? Can you basically tell us what are the factors that are keeping it from going forward today? What needs to happen?
Speaker Change #121: Can you tell us about the progress of Conti's IPO in the U.S.? What is preventing the IPO from moving forward?
Thank you for joining us. Thank you. Thank you.
Thank you for joining us. Thank you. Thank you.
Unknown Speaker, Xueqin Dong, Unknown Attendee
Xi Jinping, Kewa Luo, Xiaoming Hu, Unknown Attendee
Unknown Speaker Yes.
Speaker Change #122: Wait, say one more time about FINRA and talk about trading. Has the company filed any complaint with the SEC, FINRA, or the NASDAQ with regard to trading of its stock?
Thank you for joining us. Thank you. Thank you.
Thank you for joining us. Thank you. Thank you.
Kewa, say it again, I don't understand.
Speaker Change #123: Has our company complained to the SEC, NASDAQ, or the Financial Supervision Bureau about the current stock exchange situation?
Why are you complaining?
[inaudible]
Do you want to ask him again what he is?
Speaker Change #124: Okay, we're trying to understand why you think the company should file a complaint to the FINRA at CCNASA.
Speaker Change #125: I don't know, I guess I don't have much of a life, but I watch your stock trade every day and the service seems rather odd and the stock is sitting at $1.20.
Speaker Change #126: Anyway, let me let me just ask one other question or just two other questions and I'll be done.
Speaker Change #126: In the past, when I'm talking about international expansion for your off-road products, and on past earning calls, when asked, when Mr. Hu replied, he usually would reply as if you were just basically testing the waters in different locations.
Speaker Change #126: Could you provide any, I guess, guidance or more color in terms of what your business plan is for international expansion? I know in the last couple of days, we've noticed
Speaker Change #126: or I or some other shareholders have noticed a lot more activity in South Africa, as well as the UK. And I just wondered if you could expand on how you're going to be approaching your expansion in Southeast Asia, of course, you're in Thailand, in the EU and other locations.
Okay.
Unknown Speaker, Xueqin Dong, Unknown Attendee
提出疑问 Please raise any questions you may have.
Unknown Speaker, Xueqin Dong, Unknown Attendee
Xueqin Dong, Kewa Luo, Xiaoming Hu, Unknown Attendee
Thank you for joining us. Thank you. Thank you.
Thank you for joining us. Thank you. Thank you.
Unknown Speaker That was from the
Speaker Change #127: I would have actually started from the child cells in the European regions such as the UK, Germany, Austria, Switzerland.
Montenegro, it's good enough to be here.
Unknown Interpreter, Xiaoming Hu, Unknown Attendee
Unknown Speaker 05.
Speaker Change #128: Okay and finally I understand that now that you're in BVI that there is no requirement that any officers or directors report purchases of candy shares.
Speaker Change #128: The stock traded last week as low as $1.20. There is no indication of any insider buying for the past several years, including this year.
Speaker Change #129: To the candy company folks on this call and listening to this call, is $1.20 not low enough to entice you to make an insider buy? What kind of a message do you think that sends to shareholders that insiders seem to have no interest to buy candy shares under $2 as low as $1.20?
Thank you for joining us. Thank you. Thank you.
Speaker Change #129: My last question is, I know that your company is a B-wide company.
Speaker Change #130: I just want to ask, the company's stock price is so low, last week it dropped to $1.2. Why can't such a low stock price attract the internal management of the company to buy?
Unknown Speaker
Speaker Change #131: The company is currently in the process of developing a return on investment plan for the management and employees, but it is still in the process of planning.
Speaker Change #131: The company actually is still working on the stock buyback program as planned, and then we are setting up another upcoming program, but the process is still underway.
Speaker Change #132: He said he didn't ask about your company but about the management of the company and the internal members of the company.
Thank you for joining us. Thank you. Thank you.
Speaker Change #133: I'm talking about the management's purchase, not the company's purchase. I'm talking about the management's purchase plan and the employees' purchase plan.
Unknown Speaker
Speaker Change #134: Okay and let me rephrase, the plan we mentioned is actually addressing the buyback plan by the management and the insider.
And so such a plan is underway.
Speaker Change #135: Great. Thank you very much. Appreciate it. Thank you for taking my questions.
Thank you.
Thank you for joining us. Thank you. Thank you.
Speaker Change #136: Hello, thank you for taking my questions. I have a statement to make and then you can translate it and then I'll get into a couple of questions, not many.
As management is aware, the box is $1.25.
Speaker Change #136: and it's been trading at a new 15-year low virtually every day it's been hitting the new low.
Speaker Change #136: Yet it's by far the strongest fundamental position both in sales growth potential and cash and overall financial condition it's ever been.
Speaker Change #136: The stock has been trading under cash value for the last three quarters.
Speaker Change #136: Now it's at less than 40% cash value and 25% shareholder equity.
Speaker Change #136: As discussed on the last conference call, the replacement value of Candy's multiple facilities in China alone
Speaker Change #136: though carried on the books only at a depreciated $92 million, would be over $300 million.
Speaker Change #136: which if liquidated would raise the book value to about $7 a share.
Speaker Change #136: Since the announcement of a new management team, the stock has dropped another 22%.
Thank you.
My question is about...
Kangdi's stock currently is...
每股一块三个美元
Xiaoming Hu, Unknown Attendee
Speaker Change #136: This is not only the lowest price in the past 15 years, but also the lowest price in the company's history.
Xueqin Dong, Kewa Luo, Xiaoming Hu, Unknown Attendee
Xueqin Dong, Kewa Luo, Xiaoming Hu, Unknown Attendee
Speaker Change #137: According to the discussion at the last telephone conference, although the value of accounts in China is estimated to be $92 million after the recession, the actual cost of reconstruction is more than $300 million. If calculated, the value of accounts will increase to $7 per share. But after the disclosure of the new management layer, the stock price fell by 20%. I have the following questions.
Go ahead.
Thank you for joining us. Thank you. Thank you.
Speaker Change #138: So what is management's opinion as to why the stock has dropped so low? And please don't tell me it's just market forces. What is your opinion? Why do you think the stock is trading at net now today, another?
Speaker Change #138: 15-year low, especially since you published such an incredibly bullish five-year forecast just six weeks ago.
Unknown Attendee
Speaker Change #139: There are many factors that affect the stock price. For example, the results of the U.S. election may lead to an increase in the friction of the international trade market.
Unknown Speaker, Xueqin Dong, Unknown Attendee
Xueqin Dong, Unknown Attendee
Thank you for joining us. Thank you. Thank you.
Speaker Change #140: Well, there are many factors that will affect the stock price. For example, the result of the U.S. election may lead to some sort of increased friction in the international trade market. And the capital market, we can see that those uncertainties, you may see that the so-called pricing effect, you know, so they have included in their pricing already in the stock price, and sometimes they are rather pessimistic. So that's why the coming stock price is seriously underestimated at the moment.
Unknown Speaker
Speaker Change #141: Since there are only two reported holders of multi-million share positions, that being Mr. Hu and Olin Rice, and they're certainly not selling because they would have to report sales, plus they're involved in the company. So therefore any selling is likely coming from Chinese holders who have received shares totaling between 5 and 10 million, mainly through candy acquisitions of their companies going back a decade.
Speaker Change #141: And since the company has an active 10B5 share purchase program, has there been any effort to contact
Speaker Change #142: Unknown Speaker These suspected large sellers with a single bid to buy their whole block because there's no restriction under 10b-5 for negotiated block purchases.
Thank you for joining us. Thank you. Thank you.
Unknown Speaker.
Unknown Speaker, Xueqin Dong, Unknown Attendee
because they have to disclose how they sell their smoke
既然公司已经有了一个合作的机会,既然公司已经有了一个合作的机会,
Unknown Speaker, Xueqin Dong, Unknown Attendee
Unknown Speaker
We do not have the information that you have speculated.
Unknown Speaker
Thank you for joining us. Thank you. Thank you.
Speaker Change #143: So based on the statement that is based on your assumption of speculation observation, we currently do not have those information on hand. We are not sure about, you know, how that comes from. So while we have no comments on that.
Unknown Speaker 07.05.05
Unknown Speaker Hi, have a great day and Godspeed.
Okay so that with the share repurchase program
Speaker Change #143: currently in place in the third quarter you purchased 58,000 shares.
Right now, the stock being what it is.
Speaker Change #144: Is there some reason that you're not purchasing more? Are you waiting for the stock to go lower to get an even better price? Because this is insanity. What, you want to be efficient with your capital.
Speaker Change #144: And then my other question is, what price range does management feel?
Speaker Change #144: The stock should be trading at, if it's not $1 to $1.25,
Where do you all think it should be trading at?
Speaker Change #145: I see that you didn't buy a lot of stocks in the third quarter. When do you think the stock price will drop so that the company will start buying and selling stocks? If you don't think the stock price should be between $1.00 and $1.50, at what price do you think the current stock price should be reasonable?
Unknown Speaker
So don't comment on that. Thank you.
Unknown Attendee
Speaker Change #146: Okay, I get that, but you're certainly in a position to accelerate the buyback.
Speaker Change #147: I think you all need to take real seriously how demoralized your shareholder base is.
and start taking some actions to rectify this problem.
That's all I've got to say. Thank you.
Unknown Speaker, Xueqin Dong, Unknown Attendee
Speaker Change #148: Xueqin Dong, Unknown Attendee, Xueqin Dong, Unknown Attendee, Xueqin Dong, Unknown Attendee,
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Operator, we can take next question.
Speaker Change #149: Thank you. Our next question comes from the line of Steve Silver with Argus Research. Please proceed with your question.
Steve Silver: Hi, and thanks for taking the questions. On last quarter's call, a lot was made about the excitement and the momentum about the launch of the golf carts through Lowe's. I'm just curious as to whether there's been any feedback about the market reception to that launch, given the fact that it's now a couple of months out. Just maybe if sales of the Lowe's partnership have met expectations so far. Thank you.
Speaker Change #151: At the last press conference, we talked about the launch of the Lowe's vs. NFL golf cart.
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Speaker Change #151: We launched this joint-branded car with Lowe's and Enfield. We are currently selling it exclusively at Lowe's. The sales feedback is very good. The customer feedback is also very good. Our cooperation with Lowe's is very pleasant. Thank you.
Unknown Speaker 05.
Speaker Change #151: As for the NFA product, the reception from the customer in the market is pretty good and we are working well with Lowe's on this business. Thank you.
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Speaker Change #152: Thank you. Ladies and gentlemen, that concludes our question and answer session. I'll turn the floor back to management for any final comments.
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Speaker Change #153: Thank you again for joining today's conference call. If you have any further questions, please don't hesitate to contact our IR consultant, Gary at BlueShirtGroup.co or you can contact us at IR at CandyGroup.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.
Unknown Speaker
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Speaker Change #154: Thank you. You may now disconnect your lines. This concludes today's call.
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