KNDI - Earnings call transcript Q1 2018 | Kandi Technologies Group, Inc.

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Operator

Good day and welcome to the Kandi Technologies’ First Quarter 2018 Financial Results Conference Call. Today’s conference is being recorded. At this time I would like to turn the conference over to Kewa Luo. Please go ahead.

Kewa Luo

Thank you, operator. to call. Group welcome XXXX first and conference earnings everyone, Kandi Inc’s Technologies quarter Hello, distributed earnings website company find The its a you today copy can and on Kandi’s at press www.kandivehicle.com. release earlier are Kandi’s and Mr. With us Founder, today the Chairman CEO, Financial Hu Mr. Xiaoming; Officer, and Chief will Bing session. Mei, by question-and-answer prepared deliver both followed remarks a

Safe call. the going forward-looking the that discussions Private will contain Before I’m the Reform XXXX. Harbor note to we Act get of statement Please Safe made Harbor under Security Litigation the statements review U.S. started, regarding provisions today’s conference of today

involve Forward-looking risks statements inherent and uncertainties.

XX, the XXXX may filed As such, and update the materially Kandi December Annual Exchange Commission. any Report views company’s regarding company’s other documents the results expressed other required U.S. law. as information today. not except risks these and under ended assume on in obligation and differ Further Form the with does any the applicable for included are forward-looking uncertainties from year any to Securities fiscal statements XX-K

a is being reminder, recorded. call this As conference

Xiaoming. audio website. webcast relations be on and will available of Founder, call Mr. conference to this investor Chairman CEO, Hu an turn Kandi’s will Kandi’s over now I addition, the In

Hu Xiaoming

quarter [Foreign our a are slow you joining Language] though XXXX is quarter in even Language] this business for Hello, the [Foreign season. earnings performance very our everyone. call. strong first conference with Thank We pleased first quarter

was interested sales Company the half production, dealers. HawkEXX, to from have advanced and of its our although taken March, in been not sales. all-electric JV KXX is Kandi yet in Model end already the expected there overwhelming unveiled We SUV strides XXXX. accelerate second production of March, Geely it to launched first At In be are has the model requests Global EV

a that Limited Technology Jinhua the Language] consolidated business. technology pure existing and We The quarter, are will force its are financial fuel of additional EV Kao system the battery our of growth Kao’s and Power step EV Company statements. In An these in replacement completed acquisition driving that acquisition market will of [Foreign the major Kandi’s lead An products becoming first competitive in and new confident we revenues to and offering. share to considerably a unique is gain. delivery expected services product generate forward electric to car a provide have advantage battery EV

momentum forward, of to Kandi’s business XXXX. new we in a growth continued expect phase EV Looking of

the our Bing Now, I you would details to like will to quarter. your questions. answer first Mr. of we Mei turn to Chief Officer, – give call the Afterwards, highlights financial Financial our

Bing Mei

And hello you, the call. Thank Mr. Hu. to everyone on

Now, first I provide note unless for noted. our discuss brief today the all would I quarter results of U.S. a like financial numbers otherwise will of overview are in XXXX. Please dollars to

revenue first EV through revenue the from million of approximately or were quarter me same the first walk or $X.X in First largely results. compared increase for net Total our Power for of the you with XX% XXX.X% million, to first same $X.X from quarter increase parts let XXXX XXXX. million Kao of sales quarter Jinhua sales were for million $X.X net XXXX. the due part EV financial The of an revenue was of $X.X our of newly A the Technology. of the XX.X% An quarter quarter of revenue. total increase

to due quarter the and quarter of from first million the in quarter in to to in decrease Net margin decrease A quarter compared a quarter, $X.X in expenses this loss quarter. The to of due expenses R&D loss company of million compared due of $XX.X the corresponding this decreasing the was cost gross XX, mainly from a of same Non-GAAP was loss a due decrease goods compensation for net in XXXX. JV primarily increased the in $X.X quarter expense in net profit companies in XXXX. of quarter. the quarter of gross million in same $X.X of Gross the was operating from profits million due profits the total quarter. XX.X% the increase sales. period. increased increase were million to the of from stock profits, from of $X.X $X.X income XXXX. significantly the increase expense decrease an $X.X a was in in X.X XX.X% same was profitable the increase sales the $XX.X of first increased of primarily in expenses million for parts R&D first non-GAAP profits, million, the the XX.X% as million, XXX.X% and the came significant gross was the loss the the quarter sold to first JV the Gross of during $XX.X expenses increase approximately from first was vast XXXX. The the the in million same in a from the million, The Our The same and was the increase increase this ended increase sales of months XXXX. and of net R&D with of more profits, $X million business increase and decreased of Total mainly the majority operating three was quarter Margin EV $XX.X XXXX. mainly March first same million quarter in quarter XXXX.

me JV financials touch the on Let now. companies,

during $X.X $X million of $XX.X There the $XX.X X,XXX million, Net For the to EV of was loss products the the was XXXX. in quarter income JV the XXXX, to compared same first quarter XXXX. sales sold quarter. of in net same quarter million of net companies million were compared

the a accounting are of the have interest under company we JV We of in in equity JV the confident investments and our XX% measure company.

or the share first $X.X the of the of quarter After and entity profit tax $X.X JV for after a we was company eliminating result, million, of the company’s recorded income JV a million for net interest As quarter. XX% of XXXX. the the losses for profits

company’s Next flow. I will review the cash

of for provided provided X.X March operating ended the compared million XX, million by for investing as investing cash the XXXX $X.X activity $X.X to $X.X period activities period $X months the of year. million For the financing million the same quarter activity compared $XX.X of compared by activity of last to cash activity cash financing in used in was used in Cash same was used million million to XXXX. of was Cash same last. as by three

XXXX. of capital March at of million have XXXX $XX.X December compared working XX, We XX, to $XX.X million a as

March cash of the $XX.X and of December cash have $X.X total it we That million compared As a XXXX. restricted from XX, to XX, XXXX is me. of million as

Kewa Luo

for questions. ready Operator, we’re now

Operator

will out from Karl [Operator Please take Scherer, Instructions] Ring first from Consulting. Rang go ahead. question We

Karl Scherer

conference venture to Kandi was sales Geely the any China, had call Mr. Good with new Hu question to started at morning hailing yet in soon venture Didi and partner a regarding honor conference or which I billion, selling in valued company good been have in last CaoCao largest evening had be Kandi Mr. by and cars ride-hailing stated confirmed which of would all the doing that joint that call, Hu Chuxing, Kandi in and joint the Asia Hu, attendants. sponsored the made anticipated Shufu, CaoCao? $X.X business company Li that already was so Uber Mr.

Kewa Luo

[Foreign for And the I question. thank you Language]

Hu Xiaoming

to that how And Language] freight [Foreign is ensure hauling program.

freight the market. with partners have we we’re any where still hauling we potential in the regarding definitive discussion business, Now once a agreement to update

Unidentified Analyst

I see.

case? in models of like the Kandi that used So would be which

Hu Xiaoming

[Foreign haven’t let Language] We decided will once have I news yet I you know.

Unidentified Analyst

through ride-hailing be vehicles like rather some companies see. interconnected DiDi what those that they sold of I trial with was belief to CaoCao electric companies. or or And the their kind the

Hu Xiaoming

the Therefore Hu driver car CaoCao they For will drivers sell is car, to depend [indiscernible] Mr. driver company their are do [indiscernible] it’s allowed use the we DiDi driver. huge, DiDi own Whether this not have to to big But Language] for to how DiDi… because personal in in the CaoCao Language] will markets, program to can provide EV their use program. for And predict. to car allows the said the however provides. the [Foreign the CaoCao [Foreign hard is the regard or that the or to very vehicle

Unidentified Analyst

And island is province that leasing going apply Language] [Foreign the… see. that partners DiDi Hainan how through or CaoCao, to or would be directly like the also I Kandy with

Hu Xiaoming

[Foreign Language] saying is is Hu everything Mr. that possible.

Unidentified Analyst

see. And you. congratulations quarter are looks I around. you like Thank for which turn making good first a

Hu Xiaoming

you. Thank

Unidentified Company Representative

[Foreign Language]

Hu Xiaoming

Language] [Foreign

Operator

ahead. next We Schwartz will from Associates. not from go Please take our TAS question Ted

Ted Schwartz

these be to all AL the making each of facilities are being EVs EVs what’s Hu market instance there new year, which four will the And what in Mr. And by still can With being reported sold the Car-Share, capacity facilities? pitch thorough sold for also name? ride tell Kandi for, each which of us EV? Hi. consumer the

Unidentified Company Representative

Thank you Language] Ted. [Foreign

Unidentified Company Representative

facility sold. will are EXX will consumers are manufactured cars that in these vehicles Shanghai. markets likely market. to KXX K-XXs will JV models Geely Zhejiang at targeting the are and subsidiary K-XX to Haikou and I’d are these [ph] Language] [Foreign and being two And very being out EVs as and Auto’s well. these And factory EXX cars in also production the going Haikou. to And receives also in vehicles once be for And that in going sold currently like we general production market are KXX we subsidiary the been in the Shanghai. also KXX sell based Geely’s have the license, and as Company’s that KXX. And other And all And JV modified be to will KXX products is our on have EV Geely’s consumer-focused. ride-hauling be currently the the soon. well. sells EV mention final Company’s sold that sold and two be to vehicle most on subsidiary all products will to the And spun be

Ted Schwartz

in an quick make Mr. quarter. previously question an if said, be to sales they the if a of it’s car public quarter? doesn’t could sales hailing had why you explain shown Hu pick – it a them get they first explanation. just the Can don’t a showed be for is, it zero zero doesn’t is idea a there it sources sharing One other for that sold to there as monthly Could of over sense any the – sales or from car wonder I first But in in sale. China. Kandi it we company up

Kewa Luo

the the say sale. those look did that both that for those the official the Mr. at third-party – You third-party follow say cannot at third-party always we said, those Mr. do look look that or not in announcement on resource company’s to resources sales or you comment for suggest or recommend look Because Hu we past Hu, and resources. the source

Ted Schwartz

least at pleased, you, the the… turned forward to and around is looks like balance Thank finally look very the it of company

Bing Mei

[Foreign Language]

Hu Xiaoming

[Foreign Language] company. media our that And filings maybe you for subsidiary think way the different didn’t I’d each from time not will have sales like figures always more because I reason, announcement the they they Geely’s sold did on as are official third-party one a part. probably to number find from recommend and the Shanghai the SEC to catch out sales company’s the follow why that is EVs follow

So not be resources again the third-party may accurate.

cannot I follow always but that our So announcements. official comment

Ted Schwartz

much. very you Thank

Kewa Luo

Ted. you, Thank

Operator

We Please go Pfeffer from Oppenheimer. question will next now take from our Mike ahead.

Mike Pfeffer

and major Kao. pioneered quick patented told it in made was Good the Kandi Kandi were in among acquisition early last battery year, involved a We Late by Jinhua a exchange, An other feature decade. morning.

past? license it to make companies QBX? old so you. can about we exchange Now EV does side you differences Geely battery Kandi��s the in quick slide Can he the it it and now this Kandi’s are new And a back bit an any coming a slide quick new couldn’t patented little batter exchange still but Hu feel just in as An similarities Mr. side option And other and with can when EXX. China the Kao and not if the more of explain An why to is talk feature just see Thank likely Kao?

Bing Mei

the Okay. I’d Kao. we different An Language] clarify [Foreign like have from to Thank you. technology that patent

exchange is An can the that battery has quick So Kao on what in EVs. technology is And what the we exchange the battery equipment EV. have for Kandi the

An have So each the to electric it’s the change But exchanging to option equipment battery. has what the help battery. the vehicle for EV Kao this

has has and will reality is going however In concept Mike? the be I [Foreign exchange thing exchange not hope you that this been acknowledged market this confused. I first to the years and the method solution I still Language] battery vehicles. few that’s the clarify. has get quick I So accepted widely by ultimate approved the do Language] the market. forward. don’t popular been [Foreign believe past like for always that But Second, electric battery by

Unidentified Analyst

mean, are technology? license patented China EV I to Yes. your companies likely other

Hu Xiaoming

Mr. now very any, Language] once battery [Foreign popular, we Hu will think that the I is possible. have quick don’t exchange but saying be becomes

Unidentified Analyst

Thank you.

Kewa Luo

you. Thank

Next question, please.

Operator

next our take ahead. now will from question Please We [indiscernible]. go

Unidentified Analyst

you for taking like minute. call. Hainan for focus thank Hi, on I’d to my a

of two grant with Hainan developing in not government For mystery $XXX this management's $XX new for the years teasing been the million JV. shareholders Kandi by their million facility built Kandi was a new EV

was months the facility for and have on the – holiday stock market by being but built it comes out comes day found about reserved grand was new through finally articles Good reveal closed. XX Friday, Technologies. been U.S. bad government Internet For a is of Friday news, now this constantly research the PR for which Chinese worse and to usually this on even a we've able when And EV when Kandi mystery articles stories, hints

While those $XX still to for did about of Kandi or the so saw supposedly regarding million the if already was and itself Nothing story EV $XXX that R&D the mentioned million to All PR this or grand to two-thirds wholly-owned few little facility. PR was to the that or the JV another be these investors. in Hainan due important had the $XX mentioned, the new factory the mentioned who also quick the government now. grant that effect opening see or was a Kandi points of with into given built all it built Kandi going cost power this was happened with it are to it explain the million of

but So this. the in going of follow-on plant, And financially? Kandi, Is have up facility? this after the the name of my if not this what half so, JV. new last JV questions Kandi have are, placements to mean week many for shown the to the assume I a job does of still And questions in

Kewa Luo

Okay.

now translate have me Language] you Let what now. [Foreign

Hu Xiaoming

you [Foreign about Hainan information Language] The mentioned have facility.

announced throughout quarter information We the the market have to this gradually period.

we placement ownership now. into you at facility company, the that really the they we job that’s But answer not yet. haven’t its the to name Kandi got XXX% Hainan And for the my why are belongs see announced of not vehicle So Kandi. to is, its in of

Unidentified Analyst

there assume JV the be of transforms Is [Foreign going Okay. half facility? the a facility? Will skill in to the Language]

Hu Xiaoming

when agreement on being Hainan [Foreign the facility will injecting Language] well Based the Hainan and original And completely JV selling we have with into to good. timing then is be finished facility cross by Geely, factor the product is the the in injected JV. the the

Unidentified Analyst

targeted if Are time of announced production state of JV, the vehicle launch. the And [Operator cars now. is Is a the sales? had production manufacturing manufacturing you’re not you start? Okay. Are the there at KXX at excellent. Instructions] being the this actually the at time? Okay, this made since will car any We’ve the three there when

Hu Xiaoming

progress facility been The Language] well. has the Hainan pretty [Foreign growing of

from know XX. by our first trial production the for also the of like And began at expecting start And the you batch has sell on the the of the department. its As evaluated release June. the being end KXX to I way March now press national

Unidentified Analyst

wonderful a good quarter. Thank Thank congratulations day. excellent. Have you. very and on you much Okay, a

Kewa Luo

Thank [indiscernible]. you Thanks much. very

question please. Next

Operator

next Mark Liquid go Future. question from We’ll now ahead. take Please our from Swiss Kahnau

Mark Kahnau

everyone. Good Yes. morning, Good morning.

longer very China this to the Geely with now, made top the everyday who behind new target shops. shareholders new that each Hainan which for last the from was for I on the favorable models doesn’t name EXX. question, new which compares Will company. sold have now openly in Geely’s is joint received new mean to the Geely, to all China on it And EXX of every in and surprises change name and price pushing now marketing the assume EV market could now SUV, the the two to assumes Media, announcement compared As export. features. KXX, particularly of question, – trust way four size of we in the the manufacturers, mid has been venture the to to Almost EV, EXX, the can designated the what part EV should the specifically this be of KXX be [indiscernible] before EXX and My is

Kewa Luo

the so what’s last And question.

Mark Kahnau

exporting What models is be also each for for the it these could target market EXX of these and parts.

Kewa Luo

market EXX, the the for right. target what’s Okay,

Mark Kahnau

Yeah.

Kewa Luo

Language] [Foreign

Mark Kahnau

Language] [Foreign

Kewa Luo

Language] [Foreign

Mark Kahnau

Language] [Foreign

Kewa Luo

let your Okay, although go four through questions. me

always Geely are of First the seen that. Company and support. and trademark have the partners sure actually, Li our I’m JV Hawk. all long-term EV, all, Geely you with behind all our their under Geely Shufu is

the some is Secondly, the for hauling consumers, them of be targeting them mostly maybe have probably used launch And has of their popular very this paid EXX EXX will us. will for for consumer. XXX deposit. – one and dealers so in been But be already more be will sold but many we of actually approximately – since program, some will of ceremony, sold the right also be

this sold in So will the provide a store. off only Geely be dealership, car for not in

by well not It JV right be will will the of is production All-Star huge. confident seen pretty Model be yet very for this EXX although received once Lastly, very that the now and market. the it’s they’ve in Company, in market

questions? Now I that can Is estimate. all your

Mark Kahnau

kind That’s you, answers. yes. very Great

Kewa Luo

Okay, thanks.

Mark Kahnau

personally be going forward. the changer really game think the and will company EXX I And that for

looking lot forward. So quarter thanks and for a this great

Kewa Luo

very much. you Thank

question? Next

Operator

Please Private ahead. next question We from will take now our from Miller go Steve Investor.

Steve Miller

out But after discussed My wasn’t out first In results XX-K deal that release from call year I the it Kewa. in the report. to has with last questions. years in information the came the or itself. This when first disclosed was it earnings we broke the call. two past most, not. Kandi conference have PR quarter question the full that it needed that Hi, the SEC either did earnings in to

rare XX% a a of check XXXX have and shareholder management’s proudly the I over good seen fourth revenues year if However, that breaks was management investors proudly, year quarter. the the of XX-K quote read under terms conference half. before first discussion came the he that It would the by strong all if that and would ending in stressing large call their full caused have instead loss were shown just the been down

was there precedence So simply to [Foreign fourth my is strategic clearly favorable result. Language] quarter hide question this some and break reason

Hu Xiaoming

I Language] in a first year-over-year discuss detail comparison we’ll [Foreign with a think great the about in quarter XX-K.

Our management happy been reason is Hope really fourth separately making we all talk part. have constantly. because with lot the pretty results. shareholders, didn’t have the quarter think particular a Why efforts we’re team we quarter, we under about MD&A discussed fourth the have any we didn’t

So have a have the we separately stated more already. XX-K. pretty the But of we we talked didn’t fourth information details about clearly believe in quarter and lot

Hu Xiaoming

we saying Mr. we’ll your filing take [Foreign deterioration. in Language] Hu that, suggestions that future, our consideration appreciate into the

Steve Miller

ability everyone Kandi has why Kandi’s your that in you have I right. XXXX but of call stuff. and because outperformed and because to market on single good shareholders no for on Tesla us already past much have a or of the the forms who performance or of the so know the But Kandi and check release most rest trust say, analysts press the the respects hesitate why to the who XXX of X:X of been must better importance his not lack don’t keeping emphasized and performance just times will mister whether to Tesla’s don’t whom financial to media of one on that it have would of word stuff the shareholders My his and told time and me bad China absolutely Chinese has much agree you both Kandi and horrible. parties terrible interested This has great China the share new XX most States and basically call trying the the versus is the you China performance I don’t retirement second Language] want you and Tesla. to few suggestions. in Thanks your misters information understand those my has it up Not is manipulate years question think due makes media. piece easy far Thank secret shares get call. [Foreign to is market good to it compared short clarity. this that’s certain but last comment churns your If and and stock have to have on cap comment. if from conference All the own best undervalued I said in developed and for been it’s overall last on kept price. you. for consider a United with the the been confusion investors and

a company's on transparency in in say, focusing I the loss, into company business terms have The you or tries investors the Kandi market. file want were I always past, Q think the investor we're we I manage say expectations growing it of our going more does we back managing K the of and and still in is provide not And more business, to capital before loss. relations violation operations market the enhance in to fear, how forward learning. of close. are to applicable

market of from as this quarter, our suggestion on already close day. the shareholders a we lot aftermarket filed XX-Q Getting you starting the before the the even Sometime see, opens. can

working that. appreciate very also making the a hope I hard Hello. we progress. So to shareholder

Unidentified Analyst

Yes, Thank you, that’s it. Kewa.

Kewa Luo

Thank you.

Operator

ahead. next [Operator from Instructions] [indiscernible]. We question now go Please will our take

Unidentified Analyst

they to put a been from have it's for in earnings what it, They addition XX-Q. going be the great advance filing just out, interesting the JVs, at at Because to hour should before put a need day you X,XXX parameters, those questions. in on a get that's But to XX-K on Both that questions ask in or start the file, be to the the to can to current we Mr. to XX-K get a Otherwise, but before, Like has to is over not are dilemma, at quarter. later. face right, we [Foreign something you that They a of half – go press mention your in for. mine XXXX, on ahead Hu. Hu least of end three did ask looking that hour the car have and release, finally This the let's current me better in was for per a here. And number address we it's is analysts the last out of get questions this for stuck head. reason really want I an surprise my which in – in has the to Mr. Kandi where comment. limited three months was happen start asking actually for XX-K, All I'll very months that example, based Congratulations pet something buried information let ago, language] share. far, on the want so tell pleasant if that the go you a sales multiple years. the peeve

not said windfall Okay, filed for million conference cash have only disclosed. close buried, XX-K. could asked, – market $XXX last in Had was not pre-released questions example had reaction. PR, have possible the or liking been But it conference much better this near-term major Kandi in a the XX-K, after call the call, been market in buried filed upside is which after the after but

into around Kandi’s allocation. facility expected sale leasing commercial the government in XXX negotiations the vehicle use quote to the a Wang possible following the agreement me that call, land almost JV. from more Kandi – receive million a Kandi’s question, well am Geneva. use of that zone.” closely asset, to the regarding let been XX-K, U.S. not give the the will now, correct the RMB right over in government land reached compensation of million, the is likelihood that Xing this ask to less cash books than area is this not Kandi by the what in likelihood the if If I recent old each after for Kandi shares. little hidden cash with never portion used XX-K What's again carried developments billion to mentioned But alone company factory it sell an greatly a of off-road Kandi And is commit half $XXX the acre the legacy significantly land but taken development my “From the increased, than So value. will which JV, is dollars revised Kandi’s buyback has the such take for but in and If X since being that this would happen? total $XX at a on the vehicles does market a it's the on

Kewa Luo

[Foreign Language]

Hu Xiaoming

[Foreign Language]

Kewa Luo

– and Based its China up commercial on schedule. the for [indiscernible] to going on and relocation the the use. this governments our business money look in government this the totally this to – own taking our to changes of our Once promising, we'll how the will happen, develop compensated their government utilize needs and the that happen we terms to as having actually value on will maximize is of of company use the the government be to all proposal will land around have for going will we land which details plan, and the after and shareholders goal. more pretty development market Therefore, how always planed but to where always

Hu Xiaoming

this price with assumed $X a look And to put $XXX value Hu this valuation year as middle Mr. value. the this into with already if if government wasn’t that the case I or billion. Kandi the up million the with or were at increase the it Well. we with summer the $XXX was of last of reported million that's came and loan, surprise or situation a care the said Okay.

Kewa Luo

Language] [Foreign

Unidentified Analyst

[Foreign Language]

Kewa Luo

on give you. will based surrounding, value course final to When to properties But will the they be up final the the the to valuation a government, on come valuation surrounding valuation is of up. based the lands,

Unidentified Analyst

the $XXX in included year last Hu but stock more certainly. came encouraged million that Kandi. from doubled that of Was Mr. then value is price, tripped Which

Kewa Luo

$XXX Or million? saying $XXX or you

Hu Xiaoming

million $XXX valuation Kandi. they This didn’t be for give ever a What calculated last about year to it. out

to so investors I third – last think prospective call the well. on. conference call with it discussions as a year. in had about was time reported conference It about at quarter We talked and the in prior do prior in

Kewa Luo

[Foreign Language]

Unidentified Analyst

Language] [Foreign

Kewa Luo

And – right. she the use that of vehicles not land being that was the saying $XXX was valuation Kandi’s land million,

Hu Xiaoming

what Okay. call. you now, I’m with release out we’re conference but what to discussed Kandi’s up again, now And press in right as said last the go Well in, not year, the it press back to want last valuation. you don’t and that’s release you And if talking pull here. give planned they trying we to

I won't the find third you can I was release. and next I go back the beat think it, it quarter and the find here. I in Anyway, if quickly ahead meantime. I in question if it press mean, take

Operator

now from Focus Investments. take go next Please Tech question from ahead. our will Michael Fairnow We

Michael Fairnow

conference payments. is Mr. rear the I approximate to hoped a of on will when a what the how expect have subsidy by is last payments would address paid And $XXX Does the money part $XXX expect this wrote there’s XX% million million with like payments. addressed? this still Yes, they subsidy joint he payments Hu June this understanding who in by that also to about to quickly year. the of summer, or the be how that But be question call venture Hu Mr. My do paid, you indicated owed and joint two venture. are owned these subsidy kind

Kewa Luo

the whether… subsidy get I'm asking finished, sorry you’re if about you

Michael Fairnow

payments, understanding understanding this expect are the can $XXX Hu from payments paid, to call, candy Mr. rear that year. my of conference part is of Does affect the June from the still be by payments hope paid also approximately be And finally he my is to paid how happen? that owe Roughly When that the it JV. address indicated Mr. to the there's million, from JV two million subsidy answer $XXX as subsidy question. will the the payments Hu owned last to

Kewa Luo

got Okay, Language] Thanks. [Foreign it.

Hu Xiaoming

Language] [Foreign

Kewa Luo

Language] [Foreign

Hu Xiaoming

[Foreign Language]

Kewa Luo

[Foreign Language]

Hu Xiaoming

[Foreign Language]

Kewa Luo

Okay.

acquiring, the the settling. payments XXXX now first So part in subsidy for and already is the and your right of XXXX for question, of on process

government to money JV as number. about amount also expecting and like And from July. see still you the in to than different we're owned or clarify, we So be and are I while Kandi real finalize, June I mention think to from

there from a bit over now of to JV. RMB million million XXX just And from XXX owned little for JV bit short was RMB Kandi. XXX RMB to owned Government As a little

advertise So once to payment back to. or received subsidies where the has price JV the

Hu Xiaoming

[Foreign Language]

Kewa Luo

Language] [Foreign

Hu Xiaoming

Language] [Foreign

Kewa Luo

Hu Mr. JV subsidy of Kandi. X.X himself. JV billion to on The million amount about RMB government to from from just payment owned Again XXX the Okay. correct is RMB and

So this I hope I make clear.

Michael Fairnow

future. probably But how was understood. some going up of difference I let get handled than are kind in flavor That subsidies follow these be to me the and numbers on

Kandi get know, new have of introduction And all and addressed a the production we if receiving started two longer we much range. subsidies that will the sale has vehicles of As future any range the models growth should I of longer subsidy in to restrict to receiving restrict company due lack way payments say the due – these of of future the of payments. lack expectation

Kewa Luo

you sorry, where trying to are ask? so I’m

Unidentified Analyst

earned… to Okay. future some receive to Mr. flavor subsidy get it payments how long I’m will trying on on expectation take Hu’s

Kewa Luo

Okay.

Unidentified Analyst

of waiting sales coming with full as having sales payments? the while to And volumes specifically, expensive the models larger two and future more subsidy vehicles restrict From the quarters, range new subsidies cars probably capacities go that operate into future longer in those to on at going is a the ability until company’s expires.

Kewa Luo

you. I see, I thank Language] [Foreign see.

Hu Xiaoming

Language] [Foreign

Kewa Luo

of sales cycle. going I First on the and this an believe impact cash for especially all, our have is to don’t active

XXX the subsidy, be June about For July, receivables now, government are believe receive or million. that but able RMB to X.X point, we by billion should company’s I to

subsidy, the total in cycle. being billion as into future So and healthy therefore, on go warrant result very RMB prepay X.X a the a sales owned I’ll of exceeds

don’t I sales. impact matters JV’s to this So, going think

Unidentified Analyst

Okay. Thank you.

Kewa Luo

you. operator? Thank

Operator

in queue further at no this are the questions time. There

the like additional call yourselves turn remarks. closing back to I’d or to any for So,

Kewa Luo

Language] [Foreign

Hu Xiaoming

[Foreign Language]

Kewa Luo

for you, earnings directors Thank me attending reaffirm XXXX and allow technologies Kandi of Kandi’s board and call. gentlemen ladies at to the all our represent scope commitments. to management first quarter team the closing, in

next results. We our will have person. any questions, shareholder EV for your Good contact we continue our Thank to Relations maximize work hesitate to strong to while the you bye. operational business by very diligently much Investor you you quarter forward support. delivering value to on look talking if with focusing please strategically don’t additional growing

Operator

call. participation, and for ladies concludes today’s your gentlemen. you This Thank

now disconnect. You may

Kandi Technologies (KNDI) 11 May 182018 Q1 Earnings call transcript