KNDI - Earnings call transcript Q1 2019 | Kandi Technologies Group, Inc.

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Operator

Good day, and welcome to Kandi Technologies First Quarter 2019 Financial Results Call. Today's conference is being recorded. And at this time, I'd like to turn the conference over to Kewa Luo, IR Manager, please go ahead.

Kewa Luo

Thank you, Operator. Hello, everyone, and welcome to Kandi Technologies Group Inc.

Conference Earnings XXXX Quarter Call. First its The and www.kandivehicle.com. release today, press can company find at distributed you website a earlier Kandi's earnings copy on us Executive and founder, are Mr. With Chief today Kandi's Officer, Chairman Chief Xiaoming; Financial Hu Interim Officer, Ms. and Zhu Xiaoming. Mr. and Hu Ms. a will session. Zhu question-and-answer followed prepared remarks deliver by

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

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

a is conference recorded. call being this As reminder,

addition, conference available Relations CEO, this Investor Hu and Kandi's now founder, will I Kandi's audio an Xiaoming. will to on the website. webcast turn Mr. be Chairman call In over of

Xiaoming Hu

for joining Conference Hello, and Thank first growth. First which year-over-year gentlemen. Okay. Total represents Quarter XXXX XXX.X%, ladies Earnings revenues increased our you Call. quarter the in an incredible

from Company. directly into period meaningful this respect Geely's transitional the many with plan primary EV and as Company a In the the place has Jiangsu's production April, which and gives beginning of to qualify a manufacturing. the came sales, taking conduct under taking of Reform adjustment JV Commission period, development factory to for to in Geely causing first years. the prepared year, team approval industry a application has Ministry is a notice for first Kandi we respect into and XX,XXX a prominent Industry coupled new pure-electric shareholder. sale currently quarter, JV order the EV Kandi quarter. is JV made license for Jiangsu which review, management Kandi are This loss with recognize to approval from the in Company's - to the to pending modifying subsidy resulted during license X Company's the maximize Chinese and has add This its government's restructuring, technical they policy for capacity company JV ability advances received Despite Jiangsu Kandi and a In in our on-site Development approval the the arrives, production project national enterprise. will JV vehicle However, have with the first grow build place integration transition Company's Jiangsu as Technology approval. dual JV of automobile which If in we an impacted anticipating quarter of the Information experts production to

Che, China with Geely's EVs. significant as provide get cooperative laying Zhuan promising and Additionally, has Chuxing And believe ride-hailing corporate the manufacturer industry as us taken allow Resources, the opportunity to and supplying available signing that online every We products regain vehicle in growth will leading with that Zhejiang; Company's profile. the several market a by branding players, efforts to Furthermore, will Company able JV advantage to is continued the in Zhejiang the achieve Ruibo; to drive EVs growth resources the market. growth. position such major into to strongly agreements car sales government-accredited foundations government-accredited faster electric be for room Kandi the sharing area with of for Caocao Didi our

in the XX equity While XX%, Company in we far value Kandi's that following equity believe future. XX% restructuring Company to equity of JV in the JV the ownership the the the original Kandi's reduces restructuring exceed - equity will stake Kandi's XX%

Chief After Zhu Thank to like take call turn I Financial Officer, the the our Ms. financial highlights. that, to Xiaoming, you. would more will to I questions. Now our details give on you

Xiaoying Zhu

the Hu. Mr. you, Hello, call. Thank everyone on

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

our off-road $X.X the $XX.X of which revenues, to of increase same were due part Total compared of XXXX. of vehicles XXX.X% XXXX, approximately XXXX. results revenues First, to in XXXX. the off-road million July $X.X of $X.X this EV in XXX.X% owned from an XXXX Revenues or from or $X.X vehicles for sales compared let Autosports, an to in were quarter to was first million total the an revenue revenue, were increase accounting largely The in wholly first increase in XXX.X% of net increase me XXXX. quarter. our from million walk sales in $XX.X the of increase subsidiary first quarter, for an was $X.X and The in million net accounting the revenues XX.X% of vehicles became XX% U.S. off-road approximately increase SC from our $X.X additional period due the from EV in million million first in sales you of for through financial during million net parts or both million, total of XXXX. sales quarter quarter

first share cost or the the was The million primarily for quarter for an was share same of last margin the same XXXX. in of to with depreciation in sold million was last quarter of Our $X.X quarter in year. in increase the official of to XXXX. decrease last approximately was quarter income year of gross Gross same quarter first the XXXX. increase with was quarter Non-GAAP $X.XX assets of adjusted to million in increase The $X compared $X.XX of quarter was compared the first per was $XX.X the million increase period were net due per the GAAP in in the the was the the first non-GAAP of margin expenses increased in after net loss $X.XX increased in as higher due XXXX of net The from loss diluted non-GAAP or share loss $X.X diluted quarter, quarter per off-road XX.X% and same Gross of share was $X.X first $X.XX facility with $X.X $XX the GAAP its year, was costs from quarter's million for share XXX.X% first XXX.X% earnings this Total $X.X or the the per general net fully quarter has fixed of attributable net margin first The increase increased income quarter the in in Company's begun fully XXX% first XX.X% primarily The fully quarter due from million, last increase quarter million operating million and of or SC profit to the Non-GAAP million Autosports the in million. loss compared with million was increased million in the XXXX. production. of loss in $X primarily share to compared total million diluted per goods first in same Company share of same $X.X same period which was expenses the administrative, $X.X gross fully sales. in operation million, vehicle to of $X.X operating same of $X.X JV largely of during same with quarter such loss corresponding compared due $X.X an of year. loss sales. JV $X.X million XXXX. the the compared quarter XXXX. period to net increase diluted per loss million Hainan $X.X the from

now. the on touch financials me JV's Let

JV the For was Gross $XX.X the first $X.X net million. million were million. sales $X.XX loss quarter Company's was net of loss and XXXX,

accounting of Kandi During of for profits was to the due JV Kandi's and the in the loan are completed quarter. any first Company's Company transitional first XXXX. in been JV conversion of end after-tax million losses, of this equity at this intra-entity quarter to method for JV of Company's JV the sell under investment Kandi's share loss since loss Company quarter transfer as period. for $X.X $XX.X XX% and XX, completed the the products eliminating has of the After equity EV equity accounted JV was XXXX. the not the March million of recorded the of Company XXXX, quarter the didn't

Next, I will flow. cash review company's the

other activity that $XX quarter the million. quarter were increase an increase million million. that approximately assets of and approximately last approximately activities operating of of in the Meanwhile, compared $XX.X of major of quarter operating first increase for $X.X in used period XXXX cash in XXXX, approximately activities - first the for cash cash was for payable the For major XXXX million accounts cash an other $XX.X $XX.X an XX.X The year. receivable operating used of same of provided as operating receivables activities of of to accounts million first used was and

first $X.X property. cash was in quarter major XXXX compared the activities $X.X first million same million investing - million for The in investing to activities the of company period cash cash as investing that used For $X.X $X of last used million of of was year. activities XXXX, for purchases in used quarter

of quarter provided For of of from cash short-term $X.X the was activities repayments major major in $X.X XXXX, the quarter as for of short-term million XXXX cash year. proceeds last million compared bank approximately were used that of financing activities used The approximately X were The that first first the the cash activities loans for first loan. period quarter activities financing to bank in $X.X XXXX of used financing for million. of cash financing same

Operator

from [Operator Inc. the Arthur Corporate Instructions]. first We'll Porcari Strategies from take question

Arthur Porcari

but shifting Mr. we activity to quarter, On well, problems lay of control in a as But question, kind with the great over fantastic - to of the shifting car regards want to Hu, Hu first vehicles. I move, XX.X% But Holdings. of of a to Mr. March got JV not restructuring Shufu's the here. new especially groundwork announced shifting problem, Geely the extended-type some to sales multipart here. kind I've had Li a XX, the since over some

even only From excitement. to excluding follower National now position representing though, perspective, in $X.X Hu's buy over from with auto automaker a million of in Kandi the company; Congress Daimler's $X of I China's JV the total his market $XXX thing Company; the agree As a XXth JV put long-time Hu Mr. unquestionable have past view, should $XXX member investment the year. and People's Proton; one To on second-wealthiest he has obviously, now, of in top point equated right his Smart fully XXXX up JV have in to Malaysia's and Kandi government's for and to But Auto. to pass surpassed Black ZhiDou; total I've has to this top shift Elon now, an Cab the Geely type. in some his tripling billion transaction, cash shown investment in least the not. just Shufu and investment by Li cash first Go Lotus, Musk and at Mr. it over ahead as Car; With has to buy commitment questions. to that U.S. million this now Volvo, if as control more a London by put got million Kandi,

Kewa Luo

[Foreign Language].

Arthur Porcari

by show Li confidence future is JV the quite This a Okay. in of Shufu. the of

didn't a $X.XX Mr. should at But While of the Hu we it excellent in but pretty any over of stock in the I the Kandi guess that severely XX-Q. not will condition, cash, agree from time, looks received the that have receive share financial put market with news. which punished and the yet over

why series a his adding of Hu here. by open XXX,XXX two a later, in shares deal got so for feel market XXX,XXX tell Mr. - purchase strong the he to short market? short words this the fairly over was days open that he I've So personally Can in increased Kandi, shareholders another questions X own his

Kewa Luo

you your for Thank question.

And energy renewable energy to support, increasing transitional nation's manufacturing share gradually energy like innovative In X sector. given competition a manufacturers vehicle vehicle the and intense. branding this the I'd another And reshuffling. distinguish all moving capabilities industry in market that past having be charge extremely Regarding in developing is capital in manufacturers' to indicator clearly, JV strengthening through and Company auto the are will best the JV car in as your bring as equity and Company a JV manufacturers is to Kandi's been Therefore, question, sector, industry Geely's position that confidence will the Geely has the renewable of survive. the the a extremely, why strong Company's to option. renewable is I year. back equity must be JV the going Therefore, into In new think car both years, biggest the order Kandi's investment is in achievement its us leader the the evident XX% to this this far and so exceed XX% the business. ownership. revenue It original far will growing in restructuring

being said, bought like than in shares to view support I more Additionally, XXX,XXX undervalued. Kandi open and company seriously of of confidence my market the you show our stock in the in

Arthur Porcari

is you us to of supplier be If going Okay. to parts JV, still included? batteries and are can main Kandi the parts the and tell what

Kewa Luo

same is conditions. agreement, joint the venture supplier under to Kandi - definitely with major the a According already

Arthur Porcari

the quarters mix starting to Are other about companies? the way, sell to in to last parts Okay. been finally And has additional spread starting few noticed out. - the I that we by how

Kewa Luo

will be will going the other also But sell parts case. gradually That we to forward, companies. the

Arthur Porcari

say regain Kandi's Kandi this assumption to that for two at would with out option And potential it Do buyback? Then year restructuring. transaction was may on has What do at Shufu to Okay. the that know good with yet? shares. registered this Kandi done Why three the that buyback to we percent level? release to capital from the interest JV, Kandi the from the on a came press allowed an is be has number Li the bullet

Kewa Luo

questions. asked two you Well,

- that on continue news willing probably this accept is then to valuable. I that no relying we on own capital the less longer Company think advantages very market. Geely in such path, is registered JV Imagine based Because the be positive development with if the is, JV any JV's it feel past, will valuation. industry we First competitive become reshuffling,

Geely willing think JV accept actually it's on to I option that So the the based the level. is capital best registered

the of collaboration Company account the necessarily the agreed during not parties aligned which will years parties' portion vision necessarily the to The it based to Kandi purchasing JV will in Technologies' be on shareholders at the was Whether in the maximize within Geely equity transfer. into Technologies, extent issuing significant both help optional It's X then, taking in going to discussions. shareholder we're - X Kandi time. held X upon for form move Secondly, restructuring. items new executed. becoming do to jointly equity the parties explore years this it. a that deal - not thorough by in a - If Geely item equity Kandi value shares shareholders, by not will execute X or And after of to of agreed within regarding these it's not such be a depend great going then on -

Arthur Porcari

coming Hu buy chance Mr. $XX the the company thinking next million the so, that reminded into shares? is his quarter Since over extra Or again maybe, but he over Okay. or with the mentioned shares, buying what's here, about might back it any some us shares? more buying the about company

Kewa Luo

Board we we now do right to going have Actually, announce meeting. hosted already And approximately period, buyback. cannot it's related next Tuesday, will anything But - our regarding that. a we a announce to what doing we're because quiet

Operator

Investor. from [ph], The Private comes next Ted question Schwartz

Unidentified Analyst

its completed necessary does With requirements able when dual be the expect venture got And that Hu has the if so, license? joint finally to it? they people, get of the announce now visit he'll all from that MIIT to Mr.

Kewa Luo

by MIIT. have we regarding prepared we be to it's And news Hu soon process, one, the completed approval, years. believe pretty received the of be the the we for hear from the future approved that this application we all, we in license all this for going And the receive approval. is - have that near that should we to immediately, that them the [ph]. going but added Once Mr. announce will First first we two second

Operator

from Oppenheimer. comes question Next Pfeffer Mike from

Michael Pfeffer

then Mr. goal plus And this units one Hu year have more to for a I feel year? for total forecast year? XX,XXX is XX,XXX XXX,XXX And quick How his this next unit does realistic question. about

Kewa Luo

now, management JV after the By team is and business plan the Company restructuring. the refining objective

finalized, information. what my cannot complete, detailed share But until don't can So we to is we any the bad. more But I it's will to be plan opinion, I with have restructuring will in the be. going however, even than objectives updated today, is I better share. used once Geely's I management, think think be It

Michael Pfeffer

question. more by government XXX XXXX, for it agency, was USD facility legacy million. had reported XX-K to In in And Kandi there's approached around a one the acquire early XXXX Jinwa, been Kandi's that

last While past value years no Mr. hurry sell quarter X increased past was over the Hu to in it. in its if how Has so, years? call much? he - said And the

Kewa Luo

this the all, best of becoming government. zoning actually more - more considered is and First right to land now the It's valuable. by the be

the So come on to and more cannot better officials delays, the us. discussed wait officially become it while, the for come once to to to to make it's I a need hasn't speak but me, they this And in to do me. I for really think And I initiation matter. to going the talk us government

cash believe have [indiscernible] additionally, do so the be government, front, JV shouldn't our the land be so back going to too, deal. this sooner restructuring. we're are going flow later, any to taken payments subsidy a I money will that And by problems. this needs great the And cash receive or on So we from the to

Operator

Fairnow The Focus Investments. next [ph] question Tech from comes Michael from

Unidentified Analyst

one that vehicles last ride-hailing talked agreements you service. XX,XXX call, total the service. the Geely current the believe - which part focused the the the the X be you in subsidiary, confirmed development revenues over understand I two cars because and And According services announced, a ride-hailing on question. I ventures over the by of your ride-sharing in conference at which XXX,XXX is billion largest government years about China's that $X other would for one white-glove EVs a for owned will it the I release, X for further have press actually will years, about and accreditation previously wholly In on KXX X a requirement joint KXB. for to clearly been the that's have

put that when KXB likely they part the is, any on The are production? in other of KXX cars also first you the similar can be production? expand and will And pricing and into

Kewa Luo

of the start at online The in expected online year, has is requirements to of around the we The model entering in is ride-hailing price KXX of RMB price expected of KX groundwork the the trial that And also the model done high-end the the the around an met government. year, with in the great as Chinese the beginning Company JV Since the will model the Hangzhou RMB market. a of and operation its vehicle market deal model specifications is for ride-hailing this online of vehicle The end future. KXX scheduled near launched ride-hailing XXX,XXX. the XXX,XXX.

the it's the driving Company some anticipated develop we'll like together ideally, JV car-share forward, the Going of demand with autonomous new market. features models, meet to including

Unidentified Analyst

of And additional follow-up. kind

agreement And on will that some venture guidance when XXX,XXX give a of expect announcements us final much be major delivered some you XX,XXX years On two the restructuring? the on could joint we been when agreements this can note, And to you the on agreements? that totals that give just can this detail a also during a expect we expand this agreements previously because have would to similar on announced, how and year expect calendar guidance for not, call of final for happen? year? the can those X you conference get two joint for how restructuring venture, years, you possibly three - of further If us

Kewa Luo

Okay.

Company. of in the business all, we're is refining emphasizing Mr. the for still First of right Hu plan that process JV now, the

don't once a will since going it's the cannot the the finalized restructuring, and business we I market. I the share finished market with under conference that of But plan, have call, right much share I necessary certainly, and to the really after host Geely's we now share but we're it's control. to think So version shareholders. with restructuring plan will the going be

Operator

[ph]. comes from question from next Your Carl Review Scherer Consulting

Unidentified Analyst

battery comes vehicles. Let me my to nationwide interest recharging State the with Grid for a electric the state Kandi as exchange joint standard in original China's from first install quick venture

this really I interested you So that ride-hailing - the reviving - program, this are XXX,XXX government-sponsored the was EV program.

the this if out to Or different? the any battery new new of company one old So each in? one, And the the similar could you side, and tell is arms the then is videos sliding old the robotic us put has out on model QBX case there QBX also working electric the was generation? question? with the models? that in of mobile available one? so U.S. will have And vehicle additional QBX new old be Is And with the if the the an then also version a the I as

Kewa Luo

second think is also But is the I Hu too. disconnected. after has will And it and of reduce we so companies the increase exchange new partner believe equipment cost. trial this new exchange a automatic are largely officially It what battery efficiency equipment. to is it his and sold operation battery battery labor its equipment and expected that And said Xiaoming far start the power be this actually launched, he's probably in quarter. will to developing he

Unidentified Analyst

see. I

subsidiary, An I'm Jinhua QBX. Kao So assuming is involved Kandi's in

who Just what sell it sell is to? they they it and

Kewa Luo

disconnected. Hang Okay. on, Hu I is Mr. Operator? think

Kewa Luo

Okay.

Jinhua equipment going in And to be in of Kao - they to developing right to QBX Kao actually equipment. selling now others. the An it's in the So An also charge new be charge are

Jinhua by signed we agreement Kao. China equipment, the example, the will Resources need they be with that when An - Zhejiang For sold if

Unidentified Analyst

I see.

have So one question still. more I

original a you mystified share exchange the venture in its shares. Technologies then that time, posted after a stock Kandi the regain joint Kandi many Group filing count can venture the As for have rate joint and you by some with prearrangement others that in share that the

on Kandi. based automatically price that Could price venture? on will it Kandi's percentage prearranged shares happen share us that exchange is back color the joint a So transfer the - some on Or the that? of of give into into I'm wondering Geely will - you

Kewa Luo

I necessarily this an actually on the have be I back terms of time to the done And best emphasize the this the the we're of to then. in call, buying open terms it. discussed It's more on the - option. is equity, depending have wouldn't that want earlier but one not it's for Kandi And I the situation of Technologies interest if the do not shareholders, exactly.

And so by then, best the two parties whether still have is it opportunity to the discuss option.

will So depending is I on think good it Kandi. what for solely

Operator

The & from next Walter question Hill comes from Carty Company.

Walter Hill

last the at KXX EX production are call, right X Hu the Hainan in of production. EV Mr. we And March have presently conference for there of XXX sets okay, KXX From in parts facility. KXX, said, plans now, are and

sets we who sets new of how Kandi's the month, that questions will April facility, to and and KXX My they so still XXX if March affect were the sold owns XXX parts So month. does in since in happen have produced plan Hainan the revenues? And EV to this were as produced these Kandi are, probably next expected sales sold?

Kewa Luo

JV so Hainan ship the XXX% business belonging right original started plan JV on Kandi. the due will gradually. EV of XXX to of said, Hainan parts already Company. half like has working every them be sold to they however, to them sets JV finish some - the occurring factory But of to March. I Because the actually And And to sets sales is are EV redefining parts Kandi, to by second Company Well, JV occurs, in owned just sell the still is that revenue Company its Company's sometime the plan. - restructuring production KXX March, these to now the so of the was the

Operator

next The [ph], question Jack comes Investor. a from Cronin Private

Unidentified Analyst

Basically, Can us questions. on Mr. an sales two give initiative? U.S. update I have the Hu

able will first month? are future speed U.S. the still and fast-charge this EXX miles XX question, will achieve and track on the as considered of sales? conference cars And be of sent the a end the a to with least XXX for per at of miles we to on KXX the be hour the XXX U.S. The last to range XX have have And stated by KX feature? call, to U.S.

Kewa Luo

top range to do plan driving kilometers, United miles And the are which near still the that and EXX installing the in XXX we we the very reasons, per has a same of planning the going XX XX States XXX not hour, XXX about send roughly model to of Yes, we And feature. kilometers have speed per the on miles vehicles hour. are safety future. a is fast-charge for product

KX, have In ship the terms we U.S. of the KXX do and to KXX plan a prototype to

the for on specifically developed Chinese online planning which as for car, the However, KX KX not so the is exporting U.S. ride-hailing to is market high-end

Unidentified Analyst

the international port. is Hainan to its immediate And my to these facility cars shipping second or question is, Kandi-owned a this will be parts? sales export only If I as have heard that the proximity as Kandi true, products export will booking in how be made higher-value due

Kewa Luo

comparing a it's whether saying with still items the will the better way, still about, that we're discussing there war or Hu we're on, options, Mr. most - especially - going lot still think is us the give which is Well, only port to available parts. effective options trade sell cost-efficient as to high-value other products

waiting are we for conclusion. final So the

Operator

Your from Frank a from comes [ph] next question Private Blatterman Investor.

Unidentified Analyst

initially redesigned as to and to yet My of to have KXX to models, such correctly, introduction was first about its X, of KXX, also? meet be the standards. European KXX, X KX, EXX remember question I subsequent the the been year meet designed released being the delayed standards If due these

Kewa Luo

EXX being shipped once the these and are the to they are and going are other And are in products and so a been not U.S., trial be sales. products have - the redesigned being for since ones process designed redesigned. done, Our verified. EV KXX they of it's be they to not sold and KX, the in are U.S. KXX But like start to

Unidentified Analyst

I Kewa, the the Do standards? these particular European models meet about asking standards. specifically European was

Kewa Luo

European are the and Yes, standard EXX meeting the - KXX standards. also

Unidentified Analyst

in delays sell paying time my when second subsidies Okay. other subsidize this to the seems and priority that old me at export we exports question, the And to a have be don't to as a getting at it subsidies, we in basically of loss. TRC should countries, the light temporary

So, this export countries and Europe in Asia being other considered for therefore, time? are or Southeast at plans place

Kewa Luo

for developing our based U.S. will management market in the focusing the it energy team we As to first. the we do take now, consideration how on And want on into U.S.

Operator

The next Investor. [ph], also from question Gau comes a Private Li

Unidentified Analyst

I have two questions.

payment. fairly It The subsidy is the about one simple. is first

XXXX the China payment the and So April. media in XXXX reported approved for MIIT subsidy finally

list the from the accurate? If Mr. this Hu Could - Kandi and expect was from received you announced? do is amount list, to it around confirm so, be when the for total million. So approved $XXX JV

Kewa Luo

Mr. RMB our really that amount that closely. he following and Hu saying The in receive is should XXX.X from sales subsidy 'XX is And amount and Geely XXXX preallocating news company million. about 'XX, sales RMB XXX.X about in is XXXX you're subsidy from appreciate million.

altogether, to So the million. is about U.S. total dollars about million. amount RMB translating And is XXX.X it $XXX

it's week, right, the for should waiting Finance sent correct, is hands, right totally payment this And said now the Jinhua now distribution. And the schedule. the timing out to it Finance next Department. is it's cannot the almost from guarantee already if the just you numbers. everything the on And our since what if arrive National of but goes I depending ignoring So was Bureau government's

Unidentified Analyst

So reaffirm. I like to would

arrived has from local said central or Hu government at Mr. this... the money Jinhua agency So the the

Kewa Luo

Finance May... Bureau. On

Unidentified Analyst

owes used any yes. the news. pay the will so When million debt you receive money, of great down this that's May $XX be to in the cash Kandi? Company JV to On X,

Xiaoming Hu

be. It Company outstanding debt Kandi. of money, JV to receives If the only it'll pay most should the the

Unidentified Analyst

question second is government at Hu, I mentioned RMB going reorg, the JV a XX ask got point, call, XXX one - almost when My follow local I I'd to in the related Mr. conference JV invest or point, the billion - Company. after - actually, is

this was that this in reconfirm So at - point, if Could Mr. that point but Hu lost correctly? heard think translation. I I

Kewa Luo

say You you want to translate like do to it? that me or

Unidentified Analyst

from reorgd about from JV that RMB Company. after money from it reorg in the will billion that JV money A of a going Hu is mention - chunk [indiscernible] government but Geely support chunk the - newly big how local think I - of much local come to does the XX Mr. okay, the depends. - big is the where government invest that

Geely to of all, invest going the money in lot reorgd into JV all Company. newly So a is

Operator

a question comes from [ph], Northup next William Your Private Investor.

Unidentified Analyst

I Everything's anything ask. to don't covered. have Thank been you.

Kewa Luo

additional Thank can we you. any if have we question, Operator, up. not do close

Operator

have a question do [ph], Jackson Bob Private We from Investor. a

Unidentified Analyst

answered. questions much, you, been very also Thank my have

Kewa Luo

Thank you.

Operator

the from from Synergence There Marc is more one question in Ventures Guest queue Corp.

Marc Guest

couch looking at of as stock Chuxing, Didi The the vision well sharing Shufu. for And ride shared like Mr. with drive beyond the a that major part he is on question. the this Chuxing? elaborate United the confirm seems the agreement years? for hard in shared market that I investor is Kandi's drivers this look important just that that by Didi the as to the market, future, and there of Mr. been U.S. not ride-sharing it statistics value Hu's has to company recognize ride-sharing sees take million is it X it's it Li value the little possible are But past. - Hu Uber on potential, possible this the globally. not is the on first bit mind it, my I individual financing, shared has this X to him cars it the for that That's is million a And China of well not would at we're Hu a very Mr. deal. at just States, to when potential XX over in I Mr. with I'd the that the very that China, If it that It XXX,XXX In frustrating has new Hu drivers. in ride-sharing is ride-sharing a wish possible? has U.S. look is, in to for

Kewa Luo

XXX,XXX us that market? EVs, contract saying hasn't giving XX million basically the with drivers right Mr. have more you - Hu with Didi Are there's than shared anything they will China have in that now you the be they

Marc Guest

be would Yes, that It's I'm be plan and the this car financed cars is going government primarily that to Kandi. The elaboration they set used. requiring going to is this on up Didi The see his these have Chuxing sharing a drivers. drivers There's million from to - replacing Could be that's Hu sees evolving. with where building for for ride XXX,XXX already for alliance their where Kandi. properly. is XX Mr. be cars. working little into we And this he not market ahead. go going sorry,

Kewa Luo

questions what you two I you just asking hear that said. from are

great China, online the potentials giving of more online just need that a And confidence the and market Li on Didi And traffic transportation to in I market simply they own Therefore, even people though frustrating. a step-by-step. just Shufu services for riding they cars especially of parking there's the I and the are to residential hope ride-hailing nowadays, going have China. million their more and be - is but than going platform, prefer in driving do there lot drivers other because secondly, both that constraints believe ride-hailing things XX the environment and in to out ride-hailing pay full going forward. take First,

we great cannot pie provide within contract think whole another are it's I us. to at do for that's the going time that, with we to already milestone And it's achieve take the If step-by-step. think once. five and to that alliance we the for years, EVs with we And can You take us. can what XXX,XXX collaboration better

Marc Guest

we new moving you Kandi that be the any found at there investors a color ask a Last he the call, to I your out issues would conference model, found we these I for that and little aware little self-driving call. like are was the of. about of the a that stronger bit that. their that quarter, In likes this a and to found appreciate it and understand out, at out quarter, that really conference conference share call. at call, found appreciate we I conference Last feels to vision into future. and should up U.S. the that is we've Mr. open Hu

Kewa Luo

autonomous You mean driving feature? meaning self-driving,

Marc Guest

for I that then 'XX It's mean, there's that is or coming that know $XXX for and to have million from $XXX me. hear And by in another things. million we for million excuse the me for government payments was owed we've - 'XX, found the owed to out and me 'XX. XXXX XXXX that and $XXX

Kewa Luo

'XX, actually, dollars. sorry I'm altogether altogether, altogether 'XX, - it's 'XX, 'XX, So in total, actually, from it's U.S. $XXX million

Marc Guest

years - isn't for So the X only this it's repayment? first just

Kewa Luo

No, no, no.

just the three For - first let reemphasize. me

For to should that RMB total is is for and let subsidy preallocating 'XX million. the XXX.X payment the amount is, see, RMB million. going JV 'XX, 'XX, 'XX receive And XXX.X JV receive the me

So RMB together, it's XXX.X million.

So million. from This approximately 'XX - is XXX USD for to 'XX.

Marc Guest

Mr. past us that's of is does in factories a But at for electric to that makes of rocket. Well, - should I'm the are been there we these that regarded like under things company that vision in I this the more to The We value. investors of that color its to And when look to that owns we Geely, X Mr. company feels the going as calls have just for seat play. feels father It's Hu little The to car have restructuring. is with as the asking the Hu we've see, want why helpful feel share we're more value feel understated. in strong forward I a would the a Hu of not substantive substantive tout conceivable Kewa. publications. he new company such on strengths. look, point is, Hu from a the has quite vastly conference it other color the amount of what this would launch he Mr. from Mr. JV Hu of would Mr. - any be given question

Kewa Luo

Okay.

the over and It I flow. JV's thing positive involved cash after which will Okay. by and operation. be restructuring, less Well, in be taken definitely will sufficient be a Geely with JV I - especially very daily will do think the that

For to under be Kandi. me, Hainan is still going

going my I'm in the vision. to and future on Kandi what driving, side to EV, car. So Technologies focus focus technology a also do - will energy on cash company, that's on the market really the autonomous for become And the of R&D, the the to that on I our and high-tech spend EV focus hope example, more car-share is flying

Marc Guest

industry, appreciate that I in this of I very he to little in prominent that sharing just I love it and suggest history publication that much your in become and spent Mr. would many express more bit to wanted this Hu's respect. a industry. his years my

Kewa Luo

with done all we questions? Operator, are

Operator

from Private a [ph], question Frank Blatterman follow-up have We a Investor.

Unidentified Analyst

to start? credit used on ICE offset open will When be market is business the these credits Geely And by to expected its carbon sold or requirements?

Kewa Luo

repeat more are little one can You skipping sorry, Frank, a you I'm time? bit.

Unidentified Analyst

will trading Geely sold Okay. market When these on the to credit or start? to And be expected business offset is carbon open its used by credits ICE requirements?

Kewa Luo

discussion. under still is again this Well,

We haven't coming from out decision the seen any final government.

anything do this if that I going JV, their So But and to for cannot finalized, comment Geely anymore. I believe with it's have it's do not is business. to going to be

Operator

further no today remarks. closing additional or to back any it I are our questions. There turn speakers for

Kewa Luo

business for management work Kandi the maximize I we our continue gentlemen, you, Technologies thank we your next strategically delivering and and And diligently will like meeting. focusing the Thank our understanding operational value team reaffirm attending building to for with would look support. Directors you, talking shareholder and forward car-share while meeting. our ladies the EV of of on by today's We to results. Group, On behalf and Board business you to strong again, of at commitment to

don't additional any Investor have hesitate Relations you If questions, you, Thank to our department. goodbye. contact please

Operator

and gentlemen, Ladies Thank today's for concludes this call. participation. your you,

may You disconnect. now

Kandi Technologies (KNDI) 11 May 192019 Q1 Earnings call transcript