KNDI - Earnings call transcript Q1 2022 | Kandi Technologies Group, Inc.

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Operator

Greetings. Welcome to Kandi Technologies First Quarter 2022 Financial Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. the to turn of Luo, now Relations. Investor will conference Kewa over Director I you. Thank

begin. now may You

Kewa Luo

Thank you, for well website everyone. a find call services. of Operator. the Hello, Newswire Earlier as press to today’s for XXXX. on results, discuss on conference release joining press covering the Kandi’s you we release as results today, the the quarter Thank first issued you can all company’s the

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

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

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

Hu Xiaoming

who US, in [Foreign good Language] Asia. Hello, everyone. those those in morning Good are and are to evening to who the

new a start expand in last revenue, XX%. leveraged sales see high which generated this At oil the kicking performance. technology a revenue products to nearly crossover In of off. that the highlight million our of develop year, Looking and electric is great at year. is our We effort. think our we of enter a to or demand We're cars, are particular, and this year-over-year This in increase new to the order markets. business, business announcing luxury fruit quarter, $XX I new we time both outstanding is

more The we February continue power We a XXXX, US drive launch In and and XX a expect the X,XXX deal deliver Hainan XXX SC to to another our subsidiary. vehicles supply crossover Kandi is distributors to in Company Hainan manufacturing growth. April the Holding Province a February to ship On in in produce already subsidiary, company vehicles, over XX, X. our cars. Energy US Holding other Powersports Coleman Hainan those Autosports meaningful company, to another Technology year all electric will with of or established models to X,XXX new units May. vehicle signed battery And to New X,XXX with electric Kndi products golf March Limited end by on to of deal delivered another units we

optimistic business just is are a the what start this of be that, for We us. can large

prospects ahead, we about Looking are Kandi's in off-road electric -- vehicles. all optimistic

China EV supported We and the healthy reaches strong technology make market our will swapping that our a traction slash state. EV also believe a again stable by and once battery

innovative vehicles electric R&D our with new remain battery off-road that will on improve opportunities vehicles for We and focused our and technology swapping. create can

ahead. take now the transfer any me. and Operator, will start Q&A Kewa answer. session. the will And for CFO Let's go our English translate questions please

Operator

Private Harald Please Investor. [Operator Our first question Kobori is [ph], proceed. Instructions] from

Unidentified Analyst

be EV vehicles. Agreement positive has Kandi looks At it access January provide signed the electric license Kandi Framework vehicles, the This earlier glance, Framework NG, Hello, pure PR to selling with EV swap referencing everyone. Automobile to the all that name. not was first it Kandi to XX, such passenger call, appears in a swap required that holding On government-accredited to Limited. upon projected the as and to Kandi enters enabled appeared not April. carry China brand until was Hengrun outfits, originally or produced from will very in XXX,XXX EVs Hunan JV program. China battery vehicles on carry the requirement produce jointly as Hello. the it reading, building EV-only Agreement back expected battery enabled last announced heading electric to Kandi further But ride the

Now I four questions. have

Firstly, That’s question, has been the has activated? first the deal been the deal activated?

Hu Xiaoming

Okay.

[Foreign far? me what Language] you translate Let have so

Unidentified Company Representative

your of questions. First for all, you thank

application approved pronouncement them stage regarding the government agency of The our in is corporation. in right question place And center. already working agreement the and is orderly. then progress basically now the and indeed are The with first is then we public then in China

Unidentified Analyst

of the used will I appearance Did misinterpret founded not Kandi program the China question? brand heading Kandi even ride in in Okay. the be

Unidentified Company Representative

[Foreign Language] Okay.

Let's it together of name are is name brand the we Even vehicles together put Hengrun and this though Henghe. under the we way. working with work of that

of role manufacturing. corporation and the major a the process in take will whole Kandi the Although

Unidentified Analyst

Okay.

XXX,XXX quick aforementioned Now, program and battery Hengrun the quick to Kandi's what does talked the in in practice exchange? also about battery about the exchange contribute the ride exactly heading PR,

Unidentified Company Representative

[Foreign license delivered -- And is once to Language] to why components will we have be market process, those and electric swap major that's in So, the when PLC both because they manufacturing the what battery by producing including China we're assemble, sell major then of part the of part whole they market, that's the we part assembled sales. vehicles. in the process them. Henghe the in Hengrun make brand working the they all whole their the of to with Hengrun will And then sell parts

Unidentified Analyst

last goes questions. products up? And enticing a left specific the services, percentage but to partner and One Hopefully, what lot contribute? PR what each and clear can of seems primarily this What Hengrun management question. does

Hu Xiaoming

Hengrun there's of [Foreign the Language] the So in definition proportion. our cooperation no shares because –

the So we sharing different the Instead, issue the taking have or of the profit of percentage of are contribution don't really the we parts.

own products parts the from producing have to and then and And margin all assembling market to are their make own their Hengrun. PLC the components, they're as we after that, the know, and well. sales may the mark they up margins of we'll you As will those

taking and sales. are the So different we roles whole in manufacturing

it's really of process. we percentage but old own then So sales, not the – profit the have

Unidentified Analyst

much you very you Thank – very thank much

Hu Xiaoming

you. Thank

Operator

Our Incorporated. Corporate Please Porcari proceed. next with question from Strategies is Arthur

Arthur Porcari

million to primary Okay. going I area information not anybody where to last We Well, to understands, talk a month, it really try about the quick the all my Chinese go exchange. rest was a sure, battery why why get New Year it. It's is did out But and I'm – more about congratulations that the to – you golf Hu, the on quarter. just $XX some that. we on question did the along carts, me in the it negative-ness all-time you Mr. that. $XX haven't record seen and we a incredible we first on first contracts that we But US million quarter With now signed stand say, over actually please. and have in it's an find new China is that think economies, first all in let releases just and That's first any with in electric press quarter. you

Hu Xiaoming

strategies, the press have release to operations. news maybe the and guess different development. ongoing we strengthen achievement, Language] investors. we and our all we then try of And the businesses kind [Foreign a I fundamental release the to our press circulate once have the some past, about in An So we'll

Okay.

whole thing the make more positive. to you. order Thank in basically, So

Arthur Porcari

-- the haul. Do good we we press we’ve been it's share we've Well, Have quarter? know but longer on buyback. anything for buy shares program? done over I'm lately much nice past with the not environment, we didn't anyway, sure, any in release did back see market the the to having continue the Also, in we

Kewa Luo

[Foreign Language]

Hu Xiaoming

May Yes, event, of buyback a note our we -- release in of [Foreign XXX,XXX shares the subsequent the website. is X stock. total from a X we April shares a have as the did. such we our fact, XX-Q. disclosed Language] that on in SEC We repurchased of company's actually The share matter There’s to

Arthur Porcari

Okay. Thank you.

Let get discussion of my area to me on here. main

Quick has not of recommending and around see regarding and Battery in So I've to long exchange I discussion been at name subsequent seconds, anywhere got changing Not from its to Kandi so specialized plug-in, PRC stations has terminal the third said, only Exchange, a car first, rather YouTube action, little are was by decade-old just September replicated rest battery a since today, ago, that lifted been go of years charging question, to lease obviously, Kandi's as to do a to them the this patented share say, the Over minutes for of my the in made on with a allowed have stock the [ph] battery it I’ll beginning. white feature named Kandi all in to enough the service to background and simply I could than bit personally one battery Quick mobile XX by primary unit. still Kandi the mobile the posted car the be doors only Battery Kandi With patent time with program methods Exchange into exchanged the allow Hu as this around at him. were Jinhua. project an seem a a dozen Kewa, it any at and be called of mobile at exciting few which Quick lease What which that background showing Needless a both China’s swap from the XXXX, as government. there possible mode. China robotically a subject. exchanged battery, exchange in actually And by first like turned EVs, [ph] accessible by we official Kandi's Even the ago Exchange to Kandi with but videos any the a be time competitor. could battery decade was get and put a preferred well or knowledge, with all my roadside was The QBX, Hanju this to sliding day, the This mode few in between moments. the wheels, Battery my to a that as today, under requiring batteries in surprising, the just for questions revolutionary you Mr. have Neo the do. a for mode considered this I've paper questions government that time three reminder, published was ahead in announced

Kewa Luo

Go Language] [Foreign sure. ahead, Art. Okay,

Arthur Porcari

Okay.

Okay. There’re five about sub-questions here.

take as as is model, because mechanical incredible after today's side And exchange station. change by the two allows which for in Kandi together. to happened use the still QBX the it's endorsement. road side What Kandi on government between that well time slide mobile momentum tires lose the I'll the nationwide First, –

Hu Xiaoming

Technology [Foreign Swap its questions, our Battery Language] nature advanced did Okay. Smart your To practicality. have and answer

the So it by at a relevant time. recognized agency was government

in principle promotion of battery their of departments swap government However, the prior relevant focus support to EVs instead XXXX, those BEVs. the rechargeable and

So electric question our basically, more and is The swappable government and the swappable practical. battery noticed battery somehow the materialized. they the agencies vehicles vehicles and that more then advance, issue -- were

we the battery the So support to XXXX, until state April swap more the four ministries list of their announcement and commissions, major then instead.

more promoted So moment, the has in at the supported of numbers the companies swap of and been their China. by EVs better

time However, take years EV that does the better swappable. is progress develop models those reinvent, them relatively is slow. for to Because it Why? for

away, development. can better. So still exchange progress original swap present, then using At but the will size and better battery they happen we're but that right intelligent it foresee the time, won't is future our best equipment, takes be future. we life in continue up, we technology. to this direction will And and of technology never advance that We've definitely develop our believe upcoming the we'll give technology and this

Arthur Porcari

really Well, that. I'm hear to happy

mean, car gadget break programs of kind I you you in of unit one minutes, used of the mobile two with YouTube could minutes seem type of, down being station. a to where -- Any change that's there battery cities to made out up downtown And, if other tow the of guys the hand, can lift one over videos run about little charge two fact the change anywhere. was in have in shows In in the X.X there. the

Here, of I'm happy that minutes. expand from me be in a couple on that, let done But it can hear that. aside to really

Okay.

would So this already this use controls subsidiary one it royalties pattern technology that battery to mode. Kandi is my the QBX And said to other to third-party And have the also can can Battery side pay be slide skip question. that what this mean modes? by Exchange is automakers still made you've use I'll China so Exchange stations using, the same is the part Battery saying, exchange of China for who custom

Xiaoming Hu

all for our like battery swap [Foreign pattern the company own currently Language] the So does technology. sites

or products battery Rather, many using format not the more exchange are adopting at there are other market, treasury. from vehicles technology moment. the China the in like Although a vehicles size like there

or would battery at product commercialization. as Exchange the the the are the impact swap our Company mode, of trying subsidiary, the we is are moment, to fast-life therefore, optimal patent can say. China life I life is standard Battery So, And Limited, our develop yes, effect SaaS swap the significant, EV the developing Technology not better the commercialize adopts battery way the in of on It and to third-party explore course, for that swap the we mode. pure for

Arthur Porcari

batteries Beijing. can even assistant wouldn't such please. It logical in not being be you it model cell I a that. going the few to done it seems is to a can to -- to your be anyway, downtown I size could, place. like It in have promoted. no why do endorsed change seem was or they thought me they with on try minutes, I that a would address used or I any you're mean recall out there if vehicle follow-up phone, swap finish, roadside that, other even to could is technology in but being could going on it But unit being where again; just done

Unidentified Company Representative

[Foreign Language]

Kewa Luo

So may ago. or a more maybe in you new in the know, in as market, years China. development back XX decade The than a as is EV topic for China

And not rechargeable market. idea console aspect time, the be the past of support four decade experience the at they time way to start the and their swap that's past really may the promote development mode, development since ideal state-owned through pronouncement swap battery recognize not didn't to over released decade, they of XXXX, EV they the focus. and but why in all the they time, experience EV major the recognize their commissions the it, been the they ministries, government At it's that in mode. the recognized and of the the change. for rechargeable yet. current battery agency, promoting the mode the not optimal healthy since it's EV buy that So in does market better may this though not the have last is and them the too is time It to finally they that even much for the And what decade. quite besides, take that market

they They try they spend to there's go compete You We share. of order doesn't margin. of compete expand wisely. money may even in negative lot have make that To market a the no see many cannot occupancy to companies, sell protect in a and to us we the like sense our though other just and tomorrow. products with investors,

it the waiting soon. development orderly. become more and be will So for healthy think We we more are

healthy in that So more go viable, once becomes market obvious, we will others. compete more then with and

market the our So plan in that's development.

Arthur Porcari

I that. Well, Okay. argue can't with

a debt. under it the cash $XX at mean, use a hundred the of stock hardly with the to at any the you trading bank, I And, it's amazing in or $XX at least the I something million, going, in think just up rate bank. take it's you're cash But, have again, wise. couple see will to years million

looking you frustrating, having but we're Thank losses you. keep with cash. great, and only great If quarter, the a great to year. of just It's forward all $XXX,XXX

Hu Xiaoming

you. Thank

Operator

[Operator Instructions]

Kewa Luo

in Please, queue. more have Operator, we if go ahead.

Operator

please. moment, One

Equities next [ph]. from Please [ph] go question is Fred with Our Thacher CleanTech ahead.

Unidentified Analyst

is Shirt an well the Good the years fantastic. Group. great firm called contracted everything with considering ago, current in a over Several double price, morning. China. company IR the Blue at on stock with Congratulations trading happening quarter This just

to low, is both a fact And the nowhere a trading letter and have value be to while line that They puts top Kandi stocks. seem Blueshirt the seen. cash. even highlighted trading at is of that? to from Kandi is discount is on now out a considerably. at bottom huge improved Aside monthly Why payroll. five-year stock the and be book market

true Blueshirt You profile. be look at current Kandi this one this quarter. attention, two or with management get to least message legitimate with Thank would to out. is get undervalued to such -- especially does What would the management think plan how you. This analysts an able is at

Kewa Luo

question. [Foreign your Language]. for you Thank

Hu Xiaoming

thank in you role or is good business always main guess operation and So trying a main for question. Language] target our to do [Foreign your I fundamentals. our our job strengthen

stock As for overall the not right in now the Chinese for stocks. very price, it's trend that good true the the market is

believe share financial -- the company undervalued. and get rise performance, that we company as are business good The believe a naturally back our for statements. reasonable in the We long we our we’re Although, as more price is will in continuing the share doing price best, doing price. to our that of and

have I firm, one years. have with good there. well, of a capital [ph]. Regarding companies best are IR we They few in leading just with limitation too the in think pretty a for working our Blueshirt, like Arrival as simple the some been they the The US other are Indeed, working them or industry out And Lucid they market. are

So good, they in And market of the give we the us cooperation us are believe. is overall the few in course, give all and They pretty connections with years. opinion. the business the expertise advice, past we satisfied,

firm, departments from from -- company. always However, and we relevant take management is operation the and consideration of decision also auditors, the team. from the final then the from lawyers, the opinion Apart our of maker the the into the from opinion IR advice from

we're know, the best as companies, investors. trying the for doing we're you work know, for to the actually you may and So our best,

the in back reasonable our future, get you. share Thank level. price foreseeable the will hopefully, So to

Unidentified Analyst

you. Thank

Operator

proceed. please Investor, Private [ph], Batterman Frank from is question next Our

Unidentified Analyst

Can Yes. Good you okay? morning. hear me

Kewa Luo

Yes.

Unidentified Analyst

Okay.

had was into then A US. and the was my have And that I already airbag KXX because of halted KXX one the first mentioned while about question you an question. answered. problem. back, Just coming

my to an So to satisfaction you frame for expected is, the of KXX full the this problem with airbag and be released KXX question time resolved have regulators? America to speed US

Xiaoming Hu

[Foreign Language] Yeah.

the add-back requirement another AV DoT safety passed. at the from stand think moment, really our has hundred from We high. that US the still companies of met test numbers over still that standard requirement not So requirement Chinese having too There's the has yet. is not

can the exact requirement. that moment, we cannot regulated the timeline the at we So, tell meet

and to okay adjust strategy in of KXX order the approach, to KXX sale Neighborhood staying did and the our is the our strip market at the moment. NEV, models EV However, and models we

update about So, on that's the

Unidentified Analyst

about understand I'm really are to Kandi you but to selling the United comment But to the that like could because me, NEVs, satisfactorily. have I difficult met for be bought reverse the a surprised appear airbag car, would okay, They engineer and mechanism. regulations on the regulation. the other seems so into if you Chevrolet that? companies It description States you

Unidentified Company Representative

for just Language] [Foreign can not meet the for overall base reason major Well, really but PLC makers EV Kandi, market. the from spend the we

safety and the countries. the They based requirements know, the between of have weight As European you passengers. effect also the standard requirements on US different may the size and the of the or of driver and the China more is and FX the

any gasoline manufacturing US and manufacturer sold yet. So, EVs for then the vehicle the at in China the place moment, being of we one don't the in

Unidentified Analyst

have you. will do. That Okay. to Thank

Unidentified Company Representative

Thank you.

Operator

Thank you.

from Private Investor. is Francis question [indiscernible], Please proceed. next Our

Unidentified Analyst

Thank Hello, you. Kewa.

Kewa Luo

Hi.

Unidentified Analyst

or model if wondered, ago, more assembling other expenditure? will contract design years that for plans about some company for EV the – there a if are new and million spent you. a Hengrun a About for I on model Thank that $XX or be

Hu Xiaoming

Language] [Foreign

Kewa Luo

market is be Hu, in will that, will any Hengrun. Mr. any account that be to sold receivables sold China So – car saying

Unidentified Analyst

sold China model And will in this will the Okay. be market?

Hu Xiaoming

Language] [Foreign

Kewa Luo

Yes, be. yes. will It

Unidentified Analyst

that. on frame time Any

Hu Xiaoming

Language] [Foreign

Kewa Luo

order to volume however, are test just it's Like are product and the losing that out in achieve we China now, start we're EV in earlier we of to I try volume of the But that in not kind the on compete with order don't to money these the about certain game, China. have of to still in of sales with again definitely the of small peers. in we and money kind mentioned going call, market, being game, right not

frame going launch? time volume going So I or see our is as don't And models have we're of when, however, not EV but plan. to you this are a large the of to exact EV

Unidentified Analyst

Xinjiang status and Mr. It was agreement Okay. And future the the is EV is how strategic emphasized QBEX. Kandy Hu State Grid between agreement to cooperation PRed very and the Kandi Company. of this of and what important service in that important XXXX

So what's now? the status that Please. of

Kewa Luo

partnership you Hey, just -- let say strategic me so with a in Zhejiang? XXXX,

Unidentified Analyst

cooperation grid. what's I'm status asking Kandi between strategic the the Yes. state and of agreement

Kewa Luo

That’s really good.

Okay. [Foreign Language]

Hu Xiaoming

the exchange. right because mentioned schoolwork launching this agreement one battery some in to to state I however, had on the project the be us. [Foreign hasn't go key stable have But a condition is investment earlier, into a like because will market going will it exchange, way is the been however, we make to forward, scope going not playing yet But, this is of great strategic market grid when ready EV. in believe, to and Language] of who great I this the for that The the deal trial promote for Shaoxing. project the be in volumes realize for battery But now role

Unidentified Analyst

hear to least. that, glad I'm still alive it's at Great.

Kewa Luo

Yes.

Unidentified Analyst

plan shareholders FX the reincorporation to And call meeting point for question. the BVI? a company When some in future, does at to the approved last on in the special quick is vote

Kewa Luo

Okay. [Foreign Language]

Hu Xiaoming

the we the still being able But yet. [Foreign going now shareholder execute. right of order of in go approved -- been to Language] through meeting get through have It's once being FX. approved to We're it's not course, in to the process to proved,

Unidentified Analyst

Okay. very Thank much. you,

Kewa Luo

your you for Thank question.

Operator

have conference comments. We like I turn of to the question-and-answer would back end for session. Kewa the reached over to closing our

Kewa Luo

attending call. Thank you, again, for conference today's

updating contact in free forward look feel on Shirt. can our to conclude IR you will call Blue earnings consultant please also for e-mail us the next any This ir@kandigroup.com to If you call you our have contact our or via August. more today. questions, We

all may disconnect. You now

Kandi Technologies (KNDI) 9 May 222022 Q1 Earnings call transcript