Earnings call transcript Q4 2022

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Operator

Hello and welcome to Kandi Technologies Full Year 2022 Financial Results Conference Call and Webcast. [Operator instructions] As a reminder this conference is being recorded.

It is now my pleasure to turn the call over to the Kewa Luo, Manager, Investor Relations. Please go ahead, Kewa

Kewa Luo

Thank you, operator. everyone. Hello, for for today's the all discuss call us results Kandi's full joining you conference on to Thank year XXXX. issued we today, a covering release Earlier the press results.

well on find conference press can newswire release You website a as as from services. the

then are Chief me of Dr. Dong After prepared Q&A be Financial translate. Chief Officer. On Dong, Ming and Officer; remarks Board; Xiao which delivered today Dr. call will Hu, Mr. in I we the Mr. have Xueqin Executive session. with Chairman the Alan will Chinese, that, Lim, will a

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

inherent statements uncertainties. Forward-looking involve risks and

from expressed As the expectations such, actual materially the company's today. results may different be

that and forward-looking to all With company that, otherwise assume note Go dollars. does required now the turn except filings included other regarding the law. stated, me in CEO, information U.S. any during over public Xueqin not under The Dong. call figures the and these update with statements, call ahead, Further SEC. Dong. to uncertainties in let is the Please as applicable unless our conference obligation risks are any company's Dr. mentioned

Xueqin Dong

very Kandi's Dong, share Xueqin for financial CFO, Xiao joining Ming results Alan Today, XXXX CEO Hu, much I'm everyone. to our for Hello, you. and all today's are Lim, Kandi. of Chairman, you Thank here Mr. conference and call. with myself

a as in the of of adjustments years million well XXXX. our Results impacted strategic were full two total to This the $XX.X Our pandemic. approximately million. revenue over structure by the XXXX drove as was $XXX year loss approximately for product the past

of actually significant exclude disposal we million assets is and However, XXXX the gain equity improvement. a if this transfer, from onetime of long-term $XX.X

$XXX of foundation we enter cash with future for our development. balance lays approximately XXXX, sheet our good healthy This million. balance is a As a

of oversupply focus that causing and challenges the is shifted the of with EVs cope intense in competition, pandemic the vehicles. To our off-road we China to

unique and vehicle to us our electric revenue model. used losses diversified growth technology have This a more potential form market. reducing business the We in while electric vehicle resulted in for healthy flexible

evolving we our will cater of needs clients. to Moving the forward,

closely drive electric vehicles and partners, innovation collaborate with service. will exceptional We customer our fully off-road in deliver

deep knowledge Our gain in to technology in a a the foundation electric and market competitive advantage expertise electric fully us equips full of vehicles. solid off-road with

our revised losses. the I meaningful of success company adjustment Over I soon to a strategy has the our and faced tide. that contributions to challenge and the we period to Nevertheless, unprecedented as take begins years, turn in will make growth. am resulting eager pandemic, past two confident shape, strategic undergone Kandi's the am

answer Kewa and English questions. go will Now on questions. Xiao Q&A session. your ask to we and your will move Ming Lim Chairman, Please Alan provide ahead questions. will I and Mr. Ms. Hu the translation for and

Operator

from Our Instructions] first Mark from investor. coming question a Canal [Operator private is

Unidentified Analyst

I is a of morning, terrific and Good thanks you the Yes. have three for question results that out presented. questions. everybody,

started call, certified for under program highway now use up. conference last full built approving XXX,XXX appears rideshare the licensed the on it partner discussed KXX long-awaited automaker to Kandi accredited As has Uber-like the being government with Hengrun. finally government International wake China

first. Maybe each can parts for for required appears receive subject three statement how paid conference at providing vehicle questions parts the Mr. many Kandi When how much Hengrun About the EV. this on providing? parts, can it with Mr. it start be that Kandi in Hu Hu's says manufacture this to will parts be my Now last built? from for revenue call,

Kewa Luo

question. right. All you your Thank for

Xueqin Dong

So your question. first thank all, of you for

XX% in we're previously for which the of vehicle of parts, the revenue whole vehicle. of more assembly the than the of we set piece each obtain providing the what we So, will

Unidentified Analyst

that Well, employees at in models so, they bought being XX built Hainan is, questions is number. the being by any the appears facility Kandi the two anticipate the are provided great Then rideshare so, all being if next correct? Kandi’s if licenses built company? Do whose And it my Hengrun. sounds a be And in new Is also facility? Hengrun Kandi built you will parts? that under of used

question. then And last

parts the and last conference Does really to Hengrun. get said, on? battery parts -- generated all like Kandi steps Mr. motor of just the parts On the all provide income basically that he systems management so Hu major mean batteries these we completed to from the or call, sell

Kewa Luo

you. Thank it. Got

Xueqin Dong

So, as for are manufacturing so the final of plan assembly is for situation. together to That's is vehicle. the we for Hengrun to taking model developed, place If our and is the how work with whereas parts company, new be the Hainan corporation. in going Hengrun the current under a the cooperate all question in for components process, related to our the responsible work the

And are parts, as parts the by yes, motors, the all batteries Kandi. other is the the and and all is parts, -- manufacturing done all for done providing we we're part the manufacturing, actually engines, that including the

Unidentified Analyst

you, U.S. terrific can days. Thank my work. for taking I question. UTVs, And into Great. good see looks the the on that's the shipment keep coming these And it

to on you. you conference call then. on keep work Thank good talk just the the So and next

Kewa Luo

you. Thank

Xueqin Dong

Thank you.

Operator

Our Pfeffer mute? Michael, Mike on is coming you. cannot Oppenheimer. I from hear next you from question Are

Mike Pfeffer

for Thank, my question. taking

we full so KXX refining of On been conditions productions. the off-road Hu capable said, workflow we trucks, the mass the last for are now, call, in have the months. production few and past whole conference production right the the regarding Mr. And

very getting on a truck. We've little on really golf good-looking heard feedback carts. of lot this are investors While

the F-XXX is more low equipped around a as truck price, somewhat equipped in at $XX,XXX that plug-in Though sales electric, fully twice than this $XX,XXX. sell Ford level, similarly would

quick would under in have license most highway which states. a speed While we XXX-mile questions for truck on XX this be just two though are is pass hour Hu. big approved top up And after variable per use, to seller think agricultural range, that. miles around yet exemptions, and Mr. know maybe the real that would not general to farm I

Kewa Luo

Go you. question. Okay. ahead Thank with your

Mike Pfeffer

What by capable by mass inferring the is mean full now full if be to being he to of to as NHTSA quote is an that above? I he specifically production, referring did produced And referring Or soon he truck true, mentioned Hu this Kandi cleared for it Mr. expects is registration? LSEV? being

Hu Xiao Ming

to be that on our utilized your vehicles say can load the Department, or to as KXX, which developed big vehicles question, for category belongs So, road. the standards is U.S. of according under the you high the farm the to model, current cannot the LSVE Transportation

categorized LSEV. we as KXX yes, So our

Mike Pfeffer

last just And Okay. question.

As alternate my the farm Mr. comment be truck what course, an would Hu's market? regarding sales thoughts about

Hu Xiao Ming

phase the test understand cost, of try your marketing actually, the in market customers lead that know comments the market. user highly a side. and with consistent believe can And in currently, in U.S. our KXX to they the U.S. can the Yes, We the once our are performance, that the the is larger will thoughts. experience

Mike Pfeffer

you, your and for thanks Thank comment.

Operator

Our question next today Porcari Strategy. Arthur from from is coming Corporate

Arthur Porcari

the we bit. I'm around surprised Well, a going little I'm all. morning, change my announced XX-K yet. gotten to haven't thing Good

questions then product situation. to a to few came products with. just let's I going about in But more questions ask these a and few the I'm want first, results basic get to ask So, on back

golf a cart. So, couple questions some of by followed with on comments

a $XX in Kandi's the same May in another carts be MOU XXXX, valued we SEC units. X -- mentioned QX XX with million, also Seattle few dealers, carts, public signed value filing was later, an than also sale days the "On X,XXX another of Powersports February about the saw golf million XX, of was and down that group following, MOU Coleman more on made on As $XX put X,XXX XX-Q, March Sports the of a and XX, for 'XX signed regarding Kandi to

filing, PR which mentioned in until come both didn't May. XX-K, While the out were SEC and

was largest a Coleman months which prominently several store of Lowe's the the never identified date has to showcases Coleman big-box EV And dedicated also, be publicly primarily carts front likely with either could Kandi that were chains PR to the to there public, Corp., one the date. Kandi largest carts to of cards for plate. contracts nation's these, So, Kandi's never later, the

to them questions. selling Go has seven with I make in mine of south. the two, put and been considering actually the my down one Lowe's pass the ahead to them They But now. more them, started and that entrance, X,XXX they've great there's they in right And there. stores, front comment here looks guess, on outside I because I'm potential and

Kewa Luo

Go ahead with your questions.

Arthur Porcari

Okay.

call XX, nine a statement press already level, last an after when additional months the order back two company is for on a second its saw carts the first contract weeks alone. that million, not So, golf of surpassed value contracted that, extended amount on which $XX an freestanding full original XXXX. first with A shareholders these accounts with its to the equal for XX,XXX only few release November after made PR Coleman X,XXX for about

ever However, few all reported in ensuring have just to then QX questions. QX I be likely said, to 'XX With best delivered the be and May. in this a

Kewa Luo

Arthur. ahead, Go

Arthur Porcari

are Okay. All there logistical conference like right. any you anybody shareholder any is aware last service import would the a to Anyway, as call, called or subscribe that there? United that was I'm XX of analysts, key sure a China columns everything mentioned coming all of by tremendous amount what's out detail are in on with shipping so and many How pieces in on. to, which container imaginable, gives as the it's into States in

question us, XX,XXX press shown again in being it, X,XXX it golf the imported that the conference that was announced the key call at surpassed we appears you were that in At the Anyway, States. the only carts to available to when release. import here the time with about had talked United last that and company's time, the carts

could China at countries explain or the So, candies confirm inference be least carts now golf a selling can these or logical in management difference… the other

Hu Xiao Ming

that's question. fair So, a comment

the pieces our November on base United space. more States. that has company time, already in in of arrived aggregate Hainan that to announced whereas the the carts XX,XXX than of produced golf of the remaining transit At crossover X,XXX carts. were XXXX, golf X,XXX During

States carts China. sold sales golf that you to the And the United our that variance mentioned. of a with small XXXX, can in mount are During portion primarily explain

Arthur Porcari

think asked call, lithium. the point subsidiary which And batteries. a not the Can the you you be I batteries, From explain question currently the Kandi providing time, over golf battery Kandi would changing cart its in making And timing? Kandi make? a high-end of also the fine. and you has would about what mentioned parts bit was was were regarding shortly does Kandi AGM batteries, you conference there the golf we're that own be was that but last to Okay, -- carts. I whether AGM in at since

Hu Xiao Ming

and carts ourselves by golf the we electric well. the off are basically XXXX, lithium other be manufacturing golf in the of major batteries So, cost mainly of as ourselves. the our by of produced produced using high will Besides roads electric carts vehicles components

Arthur Porcari

that Well, news have that's great then. already mean great anyway. we battery I a division

forward then I more and seeing in Looking that's numbers. the how the want see again little to to to XX-K the bit question about area improve. carts a One golf continuing talk

Okay. United cart, company would lift front. and to the And models six-passenger golf in bed really in and back winch the now there two-passenger new bed certainly a the impressive, even already am, more with I hydraulic year, nice advertiser cart it a I use guess, with, golf a lift wholesale. be XXXX, X,XXX-pound, the States a for vacuum, be in safer the appears could seem we have in called be an for by a I where These something a

lift interesting. the And guess, -- I well. past just as I has Safer within about $XX,XXX, seems all think under far for think now back under think Lowe's websites one -- I they with and what about colors. at selling got -- the price, to two They've that's just them the the in put And just $XX,XXX, for. was passenger with least Wholesale the their the Also, -- appear as that's as of be the to And sell and I on week, I'm kind believe well, different head same around $XX,XXX Lowe's. it's that well, I at that sorry,

great for. they're shoot, it's on You want get the sneak to what hunting -- hunters on up some with now they that front, that deck what on their for

-- Anyway we just go I have and could question guess, I -- in don't yes, a if so you there. see ahead

Kewa Luo

question? your your what's you sorry, I'm question? finish Can

Arthur Porcari

actually he guess question I'm on sorry, I'm I carried off. my some I I pretty basically question was an much me. answer -- say of made. the the to well, actually would -- it responding back got for last there answered was,

So, now. let's talk about something else here

did and these into out some had still I'm the right, put had November, up the the numbers, we deliver end show we release remember sure numbers already yet. you sold that all X,XXX was that I that when They're many will United it up. carts show for press of how States, probably On been at of you said if -- not time XXXX? back, here that

sell for benefit many how XXXX? of in actually do booked the that we So, everybody golf here, carts got

Kewa Luo

So, XXXX since how we golf or your November, is, many have until cars XXXX? today question for sold

Arthur Porcari

all how both? of many of XXXX, how all many Yes, sold And for were made were you XXXX?

Kewa Luo

XXXX? In

Arthur Porcari

Right.

Kewa Luo

Okay.

Hu Xiao Ming

we there sales parts two U.S. subsidiary, and the our between our is sales. SC. of One So, the Hainan have

the during our have China SC X,XXX U.S. pieces sold and we And then XXXX. roughly the under part, we companies, U.S. for that For roughly XX,XXX sales the subsidiaries. carts sold golf of from

Arthur Porcari

in saying So, you're units done you've XXXX? XX,XXX

Hu Xiao Ming

pieces. X,XXX -- X,XXX

Arthur Porcari

will plus X,XXX. XX,XXX I say

Hu Xiao Ming

XX,XXX, the sales One parts, of to the I have as we China is mentioned, right? amount SC. So, two

eliminated course, facilities selling but to will be stand how internal SC we financials, is external and on XX,XXX for, to X,XXX So, want show Of we the consolidated the book. then in that our that Hainan from operations customers. our is have really our right? to

Arthur Porcari

that the for units, X,XXX Coleman whole time even quarter. from actually, also, another this instead prior the that, contract, was Is one time guess, got November, I already to correct? At only Well. you year the that for for but new

Kewa Luo

one I'm sorry, more say time?

Arthur Porcari

the for contract my in X,XXX got quarter so, was delivered but be you to first what was on least so, is over Coleman, that first mean, through is -- if in the -- first at to first Okay. realize company the X,XXX? for is not sales the by yet. only will first for in that say, X,XXX I announced the guess quarter? for total question bring have I the more? if total quarter? And quarter What that the saying -- to the -- And I do, units quarter. be would delivered -- I they came let's that additional much all But you've the the another expectations how up that two-part

Hu Xiao Ming

expect of that quarter. our the carts sales customers cart end or of the to vehicles pieces golf the X,XXX we first golf during the customers roughly So, of extended

Arthur Porcari

So XX,XXX bring that would the to total up then?

Hu Xiao Ming

the the an less, be will of Yes, aggregate pieces correct. golf by so carts of. you're there less, sold or XX,XXX or of yes, more Yes, end more

Arthur Porcari

that many Okay. end Well, the will that SC? to how actually obviously -- you transferred be expect at so to be user? do least that's Or will that’s how sold many

Hu Xiao Ming

Yes, so you're correct.

QX end by customers. will of year, this carts delivered of be the pieces our roughly So, golf XX,XXX external the the of aggregate to of

Arthur Porcari

you now any Do the us -- what Okay. you the target full for What on based type think you what's of year? about give goal right could see your horizon? on

Hu Xiao Ming

because to to so we U.S. discussion and the roughly have market we can expect pieces in with during this directly, jump XX,XXX the will So, be for that XX,XXX in-depth year sold lows facilitate XXXX, that cooperation the fiscal year sales the up of year. golf carts this in sales more

answer, XX,XXX to carts to there golf your year. be this sold of pieces but will in So, XX,XXX be the

Arthur Porcari

booked That's like great. hasn't -- sale delivered hasn't the your brought That's incredible is cart on actual to it book the you've for three United been SC, I put will end that in stuff guess, is doesn't guess I number time great in That's it to States That us. you Miles point one the at our user, out books or two then. year. if either in in number. an news, golf probably second sales number

done you booked XX,XXX only it. the of end I So, of and up were year, shipped, guess, quarter, X,XXX though last until this effectively even

point So does happen? actually that what

Hu Xiao Ming

Yes.

statements the on recognized performance the that is sales is recorded customers. financial the our the So, to And external made sales on from consolidated based when revenue is completed. obligation SC we our the

complete primarily, deliverables is So the the on based terms. shipping

Arthur Porcari

Okay.

of biggest XX it's built lag like not when immediately or like with? with are guess, I what plus end dealing a dealing the user you're Lowe's? Is when So, -- you're some they plus or these when XX plus I'm XX, there saying time

Kewa Luo

question. I don't get your

Arthur Porcari

Alan probably does.

As us is the far getting as sales when... paid, --

Kewa Luo

actually how So paid, we get plus, days right? many

Arthur Porcari

right. Right,

Hu Xiao Ming

advanced for current with them So, we primarily. six for with Lowe's, from for the terms roughly ourselves. the Coleman, payment credit the our will be But cooperation cooperation days actually as have

Arthur Porcari

six excellent. days, it's

Hu Xiao Ming

right. days, XX Yes,

Arthur Porcari

Okay.

because this money lose is me up surprising. compete the over Let didn't Mr. why of overall made very you business bit loss again, and EVs a in wrap be in clear Obviously, it in the I'm will here sure clarified XX-K. something then. the the quarter at. you to compete was want But it Hu's

have of was product the to fourth would written addition something have strong new else that in been I quarter, believe So, off such? or line there the must this that

Kewa Luo

What's question? your

Arthur Porcari

me You do the Just somebody not bit, line. to hear call a was trying me? so

Okay.

clear try that to was decided it Hu decided to and he again. industry, not big made EV saying for in first other has though -- sources Let he industry, that's like me a he that the money, even why Mr. very an loses it he mover look being. he's get does for in business time to the the he

in question. new to take normally, must out you -- me we that the loss product the fourth it. a quarter get caused or this So, believe this we line? been special fourth have took because there the yet, XX-K fact the but such did sort the And some ask call starts, haven't quarter we something loss sizable that leads so it before as on a I'm of Why write-down in to seen going big

Hu Xiao Ming

Yes.

million X of if quarters, you have the financial the net statements our at look for actually, roughly loss. So we three last

$XX.X we So, year whole have is the million. loss, roughly the net

is have for this well, whole can year. fixed from course. you previous such we of plus whole some impairments then we And doing assets carts So items have the adjustment year, year. pretty that that's like, -- for from some though this year. the some self-equity sales Even That's longer the the the no net for example, but incurred to... our golf plus gain and we loss other incurred trend have refer the for we why for

December, it you infection high that's that of the impact I China Yes. peak upcoming. our the well. shutdown in That's why market. believe the there's November, some has as China, over, to the Plus, better so COVID of especially consider But may operations will be the

Arthur Porcari

right. That's

about for this Okay. to in great say I'd number the expected that year. it's quite And get XX,XXX Well, industry. to by anyway, good to units this all XX,XXX managed hear that done. that's a job a

So same annual work, lot a the hard be pass will next and it Thank different year, we here everyone. very I picture on. for I'll you meeting, Appreciate have think much. them

Kewa Luo

we Thank more time you. question. for Yes, have one

Operator

Our Francis from next private investor. a question coming Forte, is

Your line is now live.

Unidentified Analyst

the two important would them. each And XXXX. status announced current October Kandi know like of of in agreements to of I

The Grid on initiate of CITIC Battery first with is Smart Kandi of one State Swap on the agreement of company Securities company second company the please? What status EV the And agreement the with to now is the is Services agreements, one both subsidiary -- process Star on battery cooperate the the to strategic Cubex an those exchange. on doing IPO exchange. exchange, tech the

Xueqin Dong

the a huge EV faced at the current shares expense. market the companies, market for market have China, in certain electric loss So, vehicle they for

economics it the not with too live financial And condition more not way we Grid as cooperation as up healthy that That's until just and to the we of market becomes to with state our for why to the for this wise of long is hold market healthy. in competition reached think the EV this that's the own why try State company. participate kind our the and in development company cost. has our see So, the try

Unidentified Analyst

Okay.

State the on Grid So, is agreement hold?

Xueqin Dong

material. of It's this one year, then the but primarily Well, not be we are two in way. coming hope amount to And let's to but our put locations not be have process, or Battery plan on per se, may the added progress Swap we Hainan. it in slowly. just And this market really focused more in it's now

Unidentified Analyst

is And still investments Okay. committed? CITIC

Xueqin Dong

CITIC at So, still effective the is moment. agreement with the

on. So yes, still is there

Unidentified Analyst

Okay. and Very good. Thank great for year. you, the congratulation,

Operator

We floor have reached like I'd the to turn the this over at session. back end of Kewa time. question-and-answer to our

Kewa Luo

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

more our us or We forward any free for questions, our conference you call you user look today. contact please call. on ir@kandigroup.com. the to This If have directly feel to via next concludes updating e-mail

Thank you.

may all now disconnect. You

Operator

teleconference Thank you. conclude That and does today's webcast.

have and participation thank You a We your you may now disconnect your day. for today. lines, wonderful

Kandi Technologies (KNDI) 15 Mar 232022 Q4 Earnings call transcript