Kandi Technologies (KNDI) 15 Mar 222021 Q4 Earnings call transcript

Company Profile

Participants

Kewa Luo	Manager, IR
Xiaoming Hu	CEO
Alan Lim	CFO
Arthur Porcari	Corporate Strategies
Walter Hill	Carty & Company
Michael Pfeffer	Oppenheimer

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings. Welcome to Kandi Technologies Full Year 2021 Financial Results Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Kewa Luo, Investor Relations Manager. Kewa, you may now begin.

Kewa Luo

you. Thank and ladies gentlemen. day, Good you by, Technologies welcome Kandi standing Year Thank XXXX and Full Earnings to for Conference Call. [Operator recording today, may reminder, we have a time. you this disconnect Instructions] objections at if As you are Hello, everyone. Thank you to results the for us year XXXX. discuss of financial full for all joining today covering issued services. well can as the results, Newswire find company’s the today, we the the as Earlier press website press release you release on on

Mr. I Xiaoming, On Lim, the prepared today me Officer. session. Executive Hu Chief we Alan call translate. and Mr. are Mr. Financial Q&A that, Chief remarks Officer; Hu have in will with will After a will deliver Chinese, then which

the XXXX. discussion we contain safe made forward-looking U.S. please Litigation statements of the Private Act Reform that Before Securities continue, of today’s will under provisions note harbor

statements, that, forward-looking turn call figures conference except Hu Chairman, mentioned Mr. over are is our ahead, the Hu. statements required these dollars. law. Please under risks inherent results Further be any company materially the uncertainties now note expressed the any SEC. other from that stated, and does that during information update public to call U.S. CEO risks in and may in all let applicable me unless The With not obligations otherwise as today. as involve Forward-looking assume to expectations uncertainties the the the company’s included different filings regarding with Xiaoming. company’s actual and and Go

Xiaoming Hu

Language] [Foreign

Kewa Luo

back to meaningful after in Kandi turnaround was the the landscape share strategic Originally, accounted Thank full for XXXX. for XXXX. business of to sales] and result growth results of self-balancing nearly electric our revenue market a segment in took were This associated business. approximately sales, call respond the get and our commercializing the we scooter year. you, growing [parts and conference primary today. I’m Kewa. of remarkable Hello, designing, XXXX changing a our EV XXXX. on happy sales broke products parts. [XXX%] to and actions total pandemic of business everyone, was annual to important was with to welcome year of manufacturing EV growth track electric able This Also and highlights operations last developing, out in scooter, XX% versus composed financial

recent in some share more the market decided EV with chase huge as However, aggressive losses. running pricing, years, market crowded, got to Chinese companies

battery swap operational Therefore, battery strength stakeholders, in and While a advanced build the swap a China’s patented full EVs make not mode continue of when by dozens that [indiscernible] this we find manufacturing and battery compared off with with our for take firmly is mode EV or to took EV swap we market will efforts prerequisite and competition believe and has our viable our and interest universal supply business considering of equipment, a batter China’s the technologies car-hailing opportunities swap shareholders will believe development. the capacity stage. we the intelligent swap, technological market in to online orderly the of [EVs] leveraging in of healthy conditions, other We early EV healthy to field adoption major in reached we market a enters development unique leveraging EVs to by financial our intelligent chain and specific initiative us of of bottom. think areas. economies, stage risk unwise its to battery it’s to position more Hence, the more participate decided to lost and other

off-road vehicles, to apply pure neighborhood variety electrification. In launch utility shifting and gradually vehicle electric the a crossover we XXXX, of its at technology EV off-road carts focus and business, vehicles. vehicle off-road Looking terrain the will industry products EVs, to golf is

is to vehicles. and utilize expertise fully to expanding vehicles plan off-road in making electric Our know-how by our

leader strive with facility will To sufficient sum the X China government payment capital in relocation to venture. with from more field up, flexibility years. transformation to we related in within market in initial and this the become our business business joint after success the with [indiscernible] We exit ended XXXX

Looking effort forward, vehicles, we full the market enter develop are technology. EV electric making products pure incorporating to off-road to for our

opportunities in We in industry’s from of the mode. expect a market believe are electric growth it plenty more the EV stable vehicles opportunities off-road more development and enters the EVs of China once to there ahead in future. We benefit

Xiaoming Hu

Language] [Foreign

Kewa Luo

translate will and for Now let’s me. Q&A session. take go Kewa English please any Operator, questions ahead. start the

Operator

from first [Operator Laderman is investor. private a Instructions] [ph], Our Frank question the of line

Unidentified Analyst

dead status I of time. your Is and at statement in Hu, to the have conference call. status In involving other swap of Hengrun KXX Hunan in States. of and One today’s this battery X KXX water that these correct? PR, the Mr. that light are questions the the am involving the the United assuming for I the prepared today’s

Kewa Luo

Hello, Frank.

Unidentified Analyst

hear Yes. me? Can you

Kewa Luo

I Yes, hear you. can

Your last water? what the get part in whether, is

Unidentified Analyst

other The going correct. status looks that battery then Also be I status my as of to It Hunan of Hengrun the in clarification is And that question. though is of understanding business I’m that line KXX. short have for time the the KXX we’re the present looking at X swap. and it’s and no longer

Kewa Luo

Language] [Foreign

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

Hello, Frank.

X So questions. there are

to our related cooperation with all, Hunan Hengrun. of First

is an manufacture know, to Hengrun may in market. R&D China EV you company As qualifications with the license the Hunan and

government sell right We in with working And we Hunan EV sale them are sell with production the which the the the we battery Originally, to the for up to this moment is And the to our on, have the started is authority, pick usage can later production in on the China expect X as swap problem between factory. at working file on year. products from that at then highway our requirement KXX, we routine. X we and our now the the airbag. requirement countries. it’s features. which encounter noticed And U.S. Once them KXX, a EV the different together a the filing. around like standard with the KXX, of orders There done DOT have -- we for and U.S., are quarter to for that of the from a the We need channel U.S. the approval is the we then order in then requirement for requirement safety airbag China. noticed between European safety is and filing requirement, self-filing EPA And

that However, takes time us different DOT. requirements and from to a requirement the meet long is is And in the Primarily to of a driver, China in standards. per of you a lot to that refine the the different airbag need safety U.S. which we airbag, sizes fit different investment noticed of it’s order the

working the is that in And moment. on We a uncertain however, very time to complete the such U.S. to refinement in at are hard. the requirements meet order

very We trying hard. are

to the order we are So our in with approach. parallel proceed production, pathway doing

at the is First our already NEV the we we products are gradually going have version and our in And customers selling delivered started -- the we refine in KXX meantime. the in market, KXX requirement to are U.S. U.S. to and airbag also, We just

Unidentified Analyst

manufacturing the future? Is electric in X by further or or on already which license affiliation preferably vehicle you going in answered. question, have the I pursue to China company its have may And an own

Kewa Luo

going whether asking apply we’re license... own our production you to Are

Unidentified Analyst

part. gave me apparently received the answer just the I to answer the Well, first

utilizing of now. pursue operate Hengrun is future, going a at undecided -- We’re license we stand-alone this are or to the time? going the Hunan In license to that

Kewa Luo

[Foreign Language]

Xiaoming Hu

[Foreign Language]

Unidentified Company Representative

to years a you was the As past few is difficult -- few develop, smaller is in started manufacturing EV companies and years get market. as phased for out the when know, ago, highly And your apply. may license market of in to questions, the many sought

license acquisition the plan to may companies. to, moment local application From into the And difficult because through. through our listing license to go more alone to them structures the of consolidate acquire in be the those so license the currently, at from our we of those with to instead it’s companies future, the government applying right easier acquire approach, the

holding and for to license those companies the the of So our targets approach acquisitions future is suitable manufacturing our look complete for EV. the in

Operator

Our next line from is Strategies. Porcari of coming with Corporate question the Arthur

Arthur Porcari

through hard good became it clearer. Kewa, me you for to guess, just opening, reported put stock also, of only I’m when I debt-free under $XXX discount the way, And Well, on, call The seems operator company over million. to within cap the market by this And China. get ridiculous. having couldn’t on at Anyway, or Yesterday, call. puts the the up at this $X.XX, queue of the I later a opened Suddenly, to the what to stock pretty through coming million the is a but time this cash $XXX around a its in to even everybody Yes. how been year -- you, just virtually significant understand compared share. total $X else be a up a industry closed it’s

that when closed $X.XX for industry, a higher, has Now still also I’m equity, buy-to-sell pervasive a CDs NASDAQ assets And all XX $XX million bullish. to I company disconnect, including And the high as and at buyback. million with high the $XXX been don’t its anyway, working value when current market a XXXX. of this in stock release. And actually, ago, until to press the a reported counting in know off that million since years top Kandi, X:X And $X.XX at $XX restricted or only I a announcement. all your categories, a a over I’ve such Yet, current over view, the seen questions. in such security of the cash and this since reported trading share compared trading a XX% dollar in particularly said, value. positive company well at $XXX $X.X. last of never is quick over very years, today, December it all why In months in $XXX years, of you from the -- ratio X:X have those trading finally, insider the liabilities don’t liabilities XX% Also, in of the Friday Yes, of million relatively positive $X.XX, And market is million X, total this million national $X of $XX ratio over count a been assets you XX down With on announced book EVs. number million level, at stock CDs. individual I’ve X market ratio. global was at capital of that discount almost only point in was in current couple share. $XX to

Kewa Luo

Okay.

Language] me first Let ahead, far. so Art. transfer Go [Foreign

Arthur Porcari

Okay.

calls the a ago, to of Going QX back couple conference call. conference ‘XX

that at price, how who time and double current The felt that’s similar stock give us traded work in the stock Can improving to along? almost quite to the also the stock question. responsibility market. a CFO take update response in coming undervalued an shareholders the personally told Kandi’s in With would you was undervaluation perception

Kewa Luo

[Foreign Language]

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

answer can I the And question more Sure. directly.

order to So them it basis our to better, that’s them investing the different company’s We the better and been and team that stock analysts understand reaching in investors in believe operation stock. perception in a market. and our our have more to on we routine the understand of the can to company improve confidence our the and IR help in firm they status in if also has and out then then let understand plan company

Arthur Porcari

been [Invesco’s] I and attention. Why got their list their it like think their there. their #X more get I they’ve to and special adding attention? seems got more seem you recently, it’s I fund of on in that mean, over -- EV is you’ve they’ve care mean it

discretionary from #X consumer #X areas. a ago month to about up in We’re the

bank. to go But discount they the stock you let such many than is me a seems us. company less even back half purchase today has on. bought Can now how in least value stock. tell Anyway, a program? net you’re stock and us it’s I the on shares of cash at it no-brainer like this through at a So mean, like -- trading book huge the this

Kewa Luo

[Foreign Language]

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

acquire as has buyback the share at company year, bought sticking our the proceed a So plan moment. and and future buyback than the to at with of million USD with of plan beginning end of fact, last back And right the back the with and million X timing. we we the in will our to more X.X the matter shares, are back share shares transactions and this stick buy of for in year over

Arthur Porcari

under you let’s opening tender $X get even million you CDs, things million my price. about -- X.X that Why I or shares. many do Realistically, for offer, and A in make count that million company the under million is don’t shares X/X of cash, CDs. you’ve trading just right cheaper. does cash, at -- same equivalents why count cash including about there. just our $X.XX could mean, say, amount million of many And years back raised years been probably the see $XXX and too, a they pay Buyback from X a it last that. in you don’t you’re bought you sold irritating all X.X share. basically which as might trading if shares, the Dutch average high ago, months, take the real X/X couple to $XXX share. $XX you I it’s company the as tell like ago it Anyway, take of about as XX the the at even $X.XX the cash, cash. in

you will some certified Chinese first. are safe as it soon-to-be that something quick, one do might left private just equity be If do delisting, from of the don’t companies PCA rater remaining smart

Kewa Luo

[Foreign Language]

Xiaoming Hu

[Foreign Language]

Unidentified Company Representative

your Thank the And and buy of for and in the additional shares timing. of at Board share we’ll future you stick right advice with own and Directors portion our suggestions, plan, definitely [indiscernible] buyback will companies the Art.

we So the considering will in we right all with buyback and further are now, still conditions the future. proceed

Arthur Porcari

back you’re the buying rate right now. At

you might I to the unless this accelerate my year, shareholders.. you’re You’ve allocated do getting through think want of plan don’t the you’re the -- million that. million buying you understanding, $XX end if back that $XX planning rates your better you near receive to

me have it but So way, here years. -- up it years, either wouldn’t under XX you it. here you But to of great want guess, the of I Why to It’s just the in at got seems you pick even great you’re I to to of don’t another come pace I wrong, $X.XX. year couple me. been I’ll $X.XX the do Anyway, me get she’s cash bank. to thought be you a up But it this anyway ended against. then guess for think what your anymore. everybody loss a considering did GAAP not year lose going making -- probably that’s to a up and share And past around ... had has else analysts from why a $X.XX insane

Kewa Luo

[Foreign Language]

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

Thanks again, consideration. support for your and

to cash key to we Of course, like In fundamental hand. to improve expenditure use our our would on have R&D better the is order of us.

to better hence, stock the moment, plan the the in on definitely So believe ahead products at and but is somehow moment. in of order I try new use on And market financial guess, the in these you can gets to then and be that the proceeds value position undervalued market. that improve the at market with we hopefully, to we improve have at our we the It our spend new will that products our trends company’s believe back normal moment, irrational future. because

Arthur Porcari

my for you. The it That’s should of. be you advantage taking irrational questions. thank But market,

Operator

line next with Walter & Carty of question Our Hill comes Company. from the

Walter Hill

refusal to the trading government concerning these delisted either to forced Recently, China news. due being PCAOB is allow the by the the to back or stocks audits company in the China by U.S. hot for books companies’ perennial open certification topic

Kandi China last ADR or this time, others Didi, listing. mostly Hong not share have already Friday this and Nedis On real following really for does seems premarket. writing, the but hundred [big and been is JD, severely XX% in or more same conference and arranging the in told, yesterday morning calls, This companies that average small], Kandi follow is However, even or China Alibaba, risk. saw attack it XX% have not are has under for that shareholders in through drop their like specifically the price again and NIO, to stock, Kong highlighted through the several when

need all certified, Kandi CCAR, sizes a account continued is ADR back that to U.S. it requirements that Kandi of XXXX shield Aside annual you U.S. from the are audit XXXX, with about. is XX-K for some And PCAOB and fate compliant fully forced clearly states out exchange to But ADR listing. China XX% fact a stock rest to specifically opinions a situation put press shareholders in release seem is of CFO severely the wisely worrying stating from clearly and not CCAR, all Kandi’s and delisting and not some same stocks an does form X PCAOB and XX% Kandi an to of Kandi’s that have Kandi years that for SEC of trading audit not has compliant now does stock not this information Kandi, average from to the going all, compliant Hu back This preparations Can market investor down read this. both average certified, once the at the yesterday to The explain looking mid-Xs. -- fully Kandi average that the with a as not record, all management their the not and the Mr. at over a punishing do stop the look do been investor another going exchanges. Most fully XX-Q. press people SEC -- from and releases. stock gets know for

So you and done. will this get guys butts get put to average that need investor so this and the this know out let’s your off

Kewa Luo

for you your question. Thank Language] [Foreign

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

you your your and consideration advice. of topic Thank for this

HFCAA. the Companies Accountable those -- companies will is know, the on stock maybe from exchange, stocks Chinese-base may Holding you delisted Act, the noncomplying As get based from get the Foreign

is the inspected One of what by cannot point PCAOB. behind the is auditor that the key be happening

PCAOB believe the same requirements, that based they they risks inspected company they mitigate U.S., has delisted. and -- the can relevant -- to of being from the can starting XXXX -- inspection. be headquarter we This in So we with our the routine with can not and are by in risk could be auditor our having will order meet already hired

our -- was As the risk -- Thank such in of such we and compliant upcoming investments or assess you. that, the XX-K way what’s best our in other Apart XX-K. the to the of disclosure disclosure. news the for circulate we from under disclosure can included our that requirements factor than course, will the

Walter Hill

going Well, be that all I to me this this to be or can give say it that all do and Don’t needs we’re done garbage now. is needs that. done, to

time think need do you of somebody follow sick need anything of tired through stock We all get And you place. the to You are is now buy on your the fired. not and getting stock, in down. get there then don’t all guys be and having to their ever go people and you if to else in rid

Kewa Luo

Language] [Foreign

Xiaoming Hu

[Foreign Language]

Unidentified Company Representative

understand We frustration, try your that. concern do then and we to and will definitely

Operator

line Our Harold next the a of Gabry investor. private question is [ph], from

Unidentified Analyst

third-party and is, us and hear question sales product other like never of Kandi clear and going making My of the present? other like we third-party motors such but Kandi’s is or the batteries? manufacturing past parts what sales third-party that parts is future EV the products the status on other for products. of segment, and Because parts what is EV hoverboard special it’s in motors, filings batteries, in Mr. products, Can both Hu and tell about this than hoverboard parts as

Kewa Luo

[Foreign Language]

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

you thank concern. for your So

the aggressive the the matter the companies, of fact, market occupancy approach. the a the EV and with the very even as with chase may know, in huge market of that, aware Chinese as So you to pricing running losses aggressive trying they’re share, are market, we

U.S. market financial European that China’s is considering or not of we other early prerequisite the the a at that we of orderly competition the our EV firmly economies to major in very the countries, compared off and believe it’s conditions battery the stage for swap to in think market EV While has us future. that a like unwise Therefore, reached the development. pulled moment. healthy participate definitely loss of EVs and We the believe adoption in universal this interest to shareholders,

past. believe the positions equipment the of swap. online that, with become vehicles, by car-hailing like China the they So when that in that in make such of the -- we industries EV fundamental to features major as countries, market a category continue our as in We those and tend as we’ll Apart enters our development the leveraging EV the technology battery of long gas European and effort the the in swap running field off-road the the manufacturing our full definitely then UTVs, dozens battery-swap from stage. that enables a in we are advanced electric healthy battery our swap of battery U.S., more intelligent patent as more market than to enhance well the our capacities ATVs, EVs markets technologies aware build modes. the And whole and in

based in the we world. is electric acumen in plan will technology, definitely XXXX, UTVs, the our pure golf the our in more both we in With can few leading So the on vehicles, and the our X be with off-road that China we in goal. a That’s a our position cart past, plan believe years and launch models. technology our

Unidentified Analyst

question Hello? other One Hello?

Kewa Luo

Yes.

Unidentified Analyst

our question. EV supplying other sales? for other Are companies involved we other with we are products batteries One companies or with or

Kewa Luo

I’m we Is what sorry, parts X asked? companies? time. you selling for say more EV the that Are other

Unidentified Analyst

Yes. the other supply line we parts example? that are for or in that companies same in and we in, the products competition EV, Do either to

Kewa Luo

[Foreign Language]

Xiaoming Hu

[Foreign Language]

Kewa Luo

also that to you offering whether the other other there EV elaborate [Foreign business your asking in competitors you question? is companies? same Language] as the supplier Can Are parts

Unidentified Analyst

parts if to we we’re selling I’m Example, battery other find other out to to to third Yes. people. party, just trying are supplying companies?

Kewa Luo

Language] [Foreign

Xiaoming Hu

[Foreign Language]

Unidentified Company Representative

experience do and our Addressing in and do edge more Yes. manufacturers. part and different such manufacturing batteries vehicle question, of And we and the to your provide that’s parts We advanced to other our technology have battery. electric business. with parts

Operator

Our Paul with Capital Partners next is the question from of King [ph] PK line [ph].

Unidentified Analyst

battery be throughout swap installing the going battery they And now technology the in and are global in way their countries will China. Scandinavian the leading is swap NIO that indicates research Our stations. stations they

that recognized. seems it their technology is So

opinion -- station to how do Chinese catch like sole that technology discovered how in also the that? or does perspective Kandi Kandi’s how have working to is to or with do or would swap What’s be We in up NIO? the they plan they Beijing closely swap’s sole And battery on NIO China. government the becoming

Kewa Luo

Language] [Foreign

Xiaoming Hu

[Foreign Language]

Unidentified Company Representative

a the market, still earlier, very EV China development. and stage in it’s healthy orderly for As not as mentioned we

So as for works that mentioned, features, brand. NIO, -- offer you their only own swap the they and for battery

be is our Our meaning and as goal is vision be -- brands, is battery whole adopted the as make will set, universal swap spend yet. by brands by swap and has more field battery prominent the soon minor that regular that and But the that all tailor-made don’t reached however, the market will different the some other by We been users. own auto adopted technology, our see stage and utilization enables features. the different adoption with

So I we our will our And swap enhance and other guess occupancy. are the to right, battery until is to wait market NIO services we different we than then time brands. different we try will because offer

Unidentified Analyst

Okay.

So is not producing you China at that in the earlier profitable mentioned moment. cars EV

you can the industry that profitability talk EVs about So mentioned? of for you producing the car-hailing

Kewa Luo

[Foreign Language]

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

market current that because first China EV in thought field is, As exactly saturated. question, for our in your

becoming it’s However, developed. not healthy orderly and

or profitable a So [EBITDA loss enter very having it’s market. not huge this even cost] to

vehicles, moment, those the the try such to So products That’s market. coming products. in more we year. until and focus cart, right, to off-road ATVs, then electric go And golf the our moment At our at equipment UTVs share focus for the we can and we as the profitable this the market in on enhance our try moment. meantime, battery the the scale we technology the EV down try is own swap to

Unidentified Analyst

how profitable If to not that the regards EVs question is my on? produce sorry, car-hailing to focusing cars car-hailing. profitable I’m EV it’s you’re it with business to produce the for for market,

Kewa Luo

Language] [Foreign

Xiaoming Hu

[Foreign Language]

Unidentified Company Representative

And regular EV focus and they of products as vehicles on other in such have car-hailing That’s that vehicles not mentioned cetera. the our markets. matter the car-hailing down and to the the the neither fact, more profitable sector we similar off-road as situation have profitable your volume UTVs, as for question, and because et as we it’s production conditions why scaled a

to we much in the share. goal However, name it, our in market let our the position aware have try our we our try to our and be that’s keep but did share too not and market We major keep spending of the larger to systems, try people to and now. for in market have

Operator

The question line of from comes with Pfeffer Michael Oppenheimer. next the

Michael Pfeffer

hot leads I’m that’s very or company sector announced and to ago, XX-plus lithium battery Huiyi, lithium battery going researchers okay. acquisition About X X and months like XXX in X-year-old my X of to up holding it with Jiangxi an China-based comments, questions, to a manufacturing make award-winning if over employees the producer include China’s brings a some per perfect Maybe please. XX XX related sales and translate go I’ll division and patents, already already to passenger Kandi’s million that, EV producing allow a This noteworthy for full that fit seemed to battery can batteries China. battery year. licensed its some it Kandi the you coveted China manufacturers in next part,

Kewa Luo

Language] [Foreign

Unidentified Analyst

and acquisition, to X-year X.X deal which for The of year including Okay. then the the have to please. make $X.X each each a I’ll million share Huiyi that, for also up called this shares. To Kandi cash a million net earn initial Maybe can million called shares X year misses. minimum annual to or part. an requires X/X year, to Kandi question, of more And then for shares get earn-out translate profit lose you X.X

Kewa Luo

ahead. [Foreign Language] Go

Unidentified Analyst

Okay.

right the for Mr. EVs told On were Hu this purchase, if Huiyi call producing batteries by also after profit asked million end shareholders yes. And ‘XX. be reached of that also the should projected should when the begin that $X.X year,

to its first of last million questions. reach $X.X few its year? stock tranche profits expected Did a Huiyi So earn

Kewa Luo

[Foreign Language]

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

matter X a net evaluate there the fact, the are income, of years, margin As we’ll for year. each

X, -- July X, up The XXXX. XXXX XXXX the from first to June evaluation is to XX, period July under the

-- is not first the was period So completed not yet.

filings. the upcoming company not. So will earn they reached of has the that’s the keep posted whether can you the in And stock first why tranche we the state or not

Unidentified Analyst

Okay.

for PR more battery on Just entering The EVs? a one put questions. Is of now the market, lithium iron battery quick Kandi global mass battery this about phosphate most Huiyi’s out new revolutionary production. the a advanced few December, this the In new IFR-XXXXX-XXXXMaH. release called

Kewa Luo

Language] [Foreign

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

adopter can scooters, Actually yet, the it’s it’s hoverboards, just electric utilize power capacity. EVs, not different with rather battery universal battery for like solely It’s more the other however, the same they and EVs higher like well. as

Unidentified Analyst

why could is battery Is to about? this you’re so related competitors? it talking or capacity Hu explain So high Mr. new better this much than different its

Kewa Luo

[Foreign Language]

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

So that the we other power can with I compete competitors. is [crux] and capacity guess compare

may in our lithium-ion then XXXX the with and higher in November. level. -- X produced. developed key continuous a As battery And The the a new average capacity. that launching self-improvement is And Huiyi capacity in further launched know, energy then enhanced the domestic back measure been battery our XXXX technical the has reflects XX% a XX% And other the time, product product successfully And compared than terms product. then back energy the is we of you in phosphate our the such At new product battery new the new with XXXX, mass it in density of of product -- to level of possibly with capacity enhancements, the level performance lithium-ion of this the actually higher density market. China one the indicators we R&D entity.

the whole market be and one the more having also launched, domestic world. makes the in in manufacturer the -- position the advanced new us in -- in position most these leading With of products China the country it

Unidentified Analyst

question last the existing tie operating multiyear does this into Kandi’s battery And division? Okay. is, how

Kewa Luo

Language] [Foreign

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

from role used the then the other to and may of origin know, we manufacturers purchase in the market. batteries you As the

different consolidate make EV that With battery production production can Huiyi, now and our whole the in features developed the different manufacturing, divisions its of enhance whole our apply our in that and divisions altogether. chain can we acquisitions we

production good EV line. a Huiyi and there’s original basically, our between So synergy

Operator

comes the Capital from Palmer line [ph]. of question with final Raging [ph] Our Ray

Unidentified Analyst

Having exchange battery of is your they’re that same or a this more, because time, that I’m down followed production. decade to you of your Hengrun, the a hear initially decided have vehicles company for is have partnership program. very array the company has to which a At you producing. with announced surprised strategically scale EV wide

any other operation And they technology. or all? for at which you furthermore, what a exchange battery swap supply on it? are there I the producing is have producing So second EVs plan units And for the question. battery Are then companies you are

Kewa Luo

Language] [Foreign

Xiaoming Hu

Language] [Foreign

Kewa Luo

Hengrun to referring you right? Are

Unidentified Analyst

Chinese company pronounce to seem Well, various of the selling. whatever platform have for wide with battery you vehicles a are they it, that they you’re partnering the swap, already

producing it. the EVs you swap like of for Hengrun, or So exchange use units not companies whichever way producing pronounce are if you’re other yourself, battery

Kewa Luo

Well, both we last companies Hengrun, is other to? in battery. which we in One announced one is one year, you referring is Huiyi, are which January; announced the

Unidentified Analyst

EVs, are all? interested, producing operation? plan matter. exchange quick use not it? units units of exchange other selling battery the is for your Are If Doesn’t battery I’m for sale there you you or quick producing What for at makes? are any on you’re other companies

Kewa Luo

Language] [Foreign

Xiaoming Hu

[Foreign Language]

Unidentified Company Representative

are there X question. So your to parts

filing order expected is Hengrun with in sometime all, of and we working in EVs which in After our the the be domestic are to get we to quarter to X market. manufacture government, in First year. that, local by approved sell are the this eligible

of to are disorderly to because was competitors EV considerable enhance to the there rather that’s market, I to we adopt try market we to we our selling the few even amount negative because they However, try they market, their not and -- manufacturers, production in in order share, resources. stage margin financial the the try of try with less plan a mentioned. Recently, will product reserve the volume our to limit a

And try we production. player point, considerable the we market this and to at to yes, spend the more market. will more until more that orderly, that our will until are moment. limit wait in the we EVs we this at then of effort at a have But only to in -- we point more is image getting healthy, that manufacture sell -- plan So

existence. have We our

our to production. However, limit try we

company. to So for the our reserve and position of shareholders the benefit order financial in

As for the question second about that..

Unidentified Analyst

Yes, you EVs companies yourself, are units battery of question Xx for call. for exchange mentioned throughout that already producing the conference not producing quick was, you other if EVs? makes other you’re My

Kewa Luo

[Foreign Language]

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

company, trying they swap mature that own their are to develop very battery not the Because it’s prominent. brand, is each not the standard. at Each market,

So to companies well. there’s fit because of use only own try swap develop really module other their we our you not own -- equipment consequently, a battery and and the to -- they companies sales as other

no equipment other plan sell companies there’s battery to swap So no, EV no our to moment. -- there’s the at sales

Unidentified Analyst

I see.

you battery technological the So units have that do how obviously headways installing in exchange you the advances companies are in to protect since do making other widely, your field? want

Kewa Luo

[Foreign Language]

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

they even loss market a now, players, the aggressively market the some spend at So major huge with right to gain are there try to in order share.

regular However, they prominent rather not the to though battery the stations, is I end the all obviously the users moment. rate low. yet, even It’s at swap mentioned the market is not utilization mature build

we for -- but enter long not Of course, aggressive it in sufficient that own technology enhance market our follow try enter to be cash this our burning the And run. on just to us this because market will fundamentals, really have with it’s we will money. hand, not we

So to wait future, the is be you not until enter the becomes cost-efficient we in at more the and making for but market will us more will margin-wise, moment. healthy, sense

Unidentified Analyst

I Can please? add helpful. another question, That’s

Kewa Luo

Sure.

Unidentified Company Representative

please. Yes,

Unidentified Analyst

like millions is of buying the to bound and very and, appear of there does per not So majority $X with owners your It the you’re that’s depending cash and probably in the aspects that for spend psychological company manipulated on value. also shares. on company supply is book is on the undervalued their with are widely Hu cash share, and discount of the above from since it company owners explanation, back of are appears ample a you markets XX% reserving sitting value sitting markets cash, Mr. that believes a on are hundreds own to

a a large you’re you having spend only value, concern your shareholders. company. share. you do not for Why How discount a better, if believe per to it’s buy valuable actually the could price cash where company but [believe] your in book that’s So money you the at not to

Kewa Luo

Language] [Foreign

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

in have we the already past. answered similar question such Actually,

So we’re in right not the buyback our trying enter to the we’ll elaborate plan and stick with but too much, moment. market [indiscernible] share

Unidentified Analyst

getting markets C-level shares our their own not waiting for and while then foregoing buying and the incentives compensation as If share employees cash they’re back or executives also to change.

Kewa Luo

[Foreign Language]

Xiaoming Hu

[Foreign Language]

Unidentified Company Representative

and the this year. We as and year in actually, we already -- to -- million try end put [for of batch -- last another you $X in again, we stick last have January may we’re actually shares] have months, with few like know, our plan in

continue plan. with So will with our to the we buybacks proceed shares

we are if confident price is to is thing the company necessary, money the again more will shares, the However, the buy share increase. but spend are we with the even -- though shares, it’s meaning not

considering for the buyback whole So will again, in -- market conditions and plan a shares future. we the proceed

Unidentified Analyst

yourself, Is are saying a $X.XX buy you at you bonus for preserving is plan. basically think the for and company you the have incentive for valuable company you’re correct? shares that for cash don’t the a but compensation So compensation for employees as and

Kewa Luo

Language] [Foreign

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

we So for I plan. price we compensation, are guess complying buyback plan trying is, not will we SEC again, our And of share offer that’s package. -- the not as the because them standard with own manipulate course, speak the the of with rule. ourselves to then our just And

we enhance and try to be improved. price just fundamental hopefully, So on share the the will

Unidentified Analyst

pertinent think to believe that would at enough higher, $X.XX have buy is be correctly shareholder be in benefit wasn’t company if $X.XX or money benefits. not the you shares, you and bank share whether should that you price. the own saying do use the valued investment do the the and manipulate to your you cheaper, implying into it a at I should valued be you it think I valuable it’s was company’s the

Kewa Luo

Language] [Foreign

Xiaoming Hu

Language] [Foreign

Unidentified Company Representative

proceed definitely take your your consideration, in advising the for again Then will consideration future. we and

Operator

floor and the reached end time for to closing we’ve our management remarks. this of session I’ll turn At back question-and-answer the

Xiaoming Hu

Language] [Foreign

Kewa Luo

again you concludes our today. conference call forward today’s Look for attending This call. our Thank next Thank you. to call.

Operator

lines Thank you your participation. You may your this time. disconnect for at

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.