Kandi Technologies Group Inc (KNDI) 2023 Q1 法說會逐字稿

Good morning, and welcome to the Kandi Technologies First Quarter 2023 Financial Results Conference Call. (Operator Instructions) Please note that this event is being recorded. I would now like to turn the conference over to Kewa Luo, IR Director. Please go ahead.

早上好，歡迎來到 Kandi Technologies 2023 年第一季度財務業績電話會議。 （操作員說明）請注意，正在記錄此事件。我現在想將會議轉交給 IR 總監 Kewa Luo。請繼續。

Thank you, operator. Hello, everyone. Thank you for joining us on today's conference call to discuss Kandi's results for the first quarter 2023. Earlier today, we issued a press release covering the results. You can find the press release on the company's website as well as from Newswire services. On the call with me today are Mr. Xiaoming Hu, Chairman of the Board; Dr. Xueqin Dong, Chief Executive Officer; and Mr. Alan Lim, Chief Financial Officer.

謝謝你，運營商。大家好。感謝您參加今天的電話會議，討論康迪 2023 年第一季度的業績。今天早些時候，我們發布了一份涵蓋業績的新聞稿。您可以在公司網站和 Newswire 服務中找到新聞稿。今天與我通電話的是董事會主席胡曉明先生；董學勤博士，首席執行官；和首席財務官 Alan Lim 先生。

Dr. Dong will deliver prepared remarks in Chinese, which I will then translate. After that, we will have a Q&A session. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC.

董博士將用中文發表事先準備好的發言，然後由我翻譯。之後，我們將進行問答環節。在我們繼續之前，請注意今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款作出的前瞻性陳述。前瞻性陳述涉及固有的風險和不確定性。因此，公司的實際結果可能與今天表達的預期存在重大差異。有關這些及其他風險和不確定性的更多信息包含在公司向美國證券交易委員會提交的公開文件中。

The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please note that unless otherwise stated, all figures mentioned during the call are in the U.S. dollars.

公司不承擔任何更新任何前瞻性陳述的義務，除非適用法律要求。請注意，除非另有說明，否則通話中提到的所有數字均以美元為單位。

With that, let me now turn the call over to our CEO, Xueqin Dong. Go ahead Dr. Dong.

有了這個，現在讓我把電話轉給我們的首席執行官董學勤。去吧董醫生。

(foreign language)

（外語）

[Interpreted] Hello, everyone. I'm the CEO of Kandi Technologies. My name is Xueqin Dong. Welcome to today's conference call.

【解讀】大家好。我是康迪科技的首席執行官。我叫董雪琴。歡迎來到今天的電話會議。

Our first quarter revenue of $22.9 million was down slightly from 1 year ago, due to the strategic shift in business focus. Over 90% of the revenue was attributed to steadily increasing sales of our off-road vehicles and associated parts, which nearly doubled year-over-year.

由於業務重心的戰略轉移，我們第一季度的收入為 2290 萬美元，比一年前略有下降。超過 90% 的收入歸因於我們的越野車和相關零件的銷量穩步增長，同比增長近一倍。

The higher margins of off-road vehicles boosted overall gross margin. Thanks to the strong growth profit, we achieved positive net income for the quarter, a significant improvement from the loss experienced last year.

越野車的較高利潤率提高了整體毛利率。得益於強勁的利潤增長，我們在本季度實現了正淨收入，與去年的虧損相比有了顯著改善。

Incorporating fully electric off-road vehicles into our product line not only aligns with our values of environmental sustainability and social responsibility, but also positions us as a leader in the industry. We are confident that our focus on this market will benefit us in the future.

將全電動越野車納入我們的產品線不僅符合我們的環境可持續性和社會責任價值觀，而且使我們成為行業的領導者。我們相信，我們對這個市場的關注將使我們在未來受益。

Our strong balance sheet and financial position put us in a unique position to capitalize on opportunities in this market, and we are excited about the potential for growth. Looking ahead, we are committed to delivering innovative and sustainable solutions to meet the evolving needs of our customers and the market.

我們強大的資產負債表和財務狀況使我們處於獨特的地位，可以利用這個市場的機會，我們對增長潛力感到興奮。展望未來，我們致力於提供創新和可持續的解決方案，以滿足客戶和市場不斷變化的需求。

Now we will move on to the Q&A session. Xiaoming Hu and I will answer your questions. And Ms. Kewa and Mr. Alan will provide translation for English questions. Please go ahead and ask your questions. If you have any questions in asking questions, feel free to ask the operator.

現在我們將進入問答環節。我和胡曉明會回答你的問題。 Kewa女士和Alan先生將提供英語問題的翻譯。請繼續提問。如果您在提問中有任何疑問，請隨時向接線員詢問。

(Operator Instructions) Our first question is from the line of [Mark McLaughlin], private investor.

（操作員說明）我們的第一個問題來自私人投資者 [Mark McLaughlin]。

I'm [Mark McLaughlin]. I run a family office in Jacksonville, Florida. A little bit of background. First, thank you, Mr. Hu, for finally offering at least a partial unit guidance for 2023, unit guidance covering golf carts alone of 20,000 to 25,000 units while not reported in the preferred press release or announcement, you are at least on record saying that the year end -- on the year-end 2022 conference call, to quote Mr. Hu, "So for the fiscal year 2023, we expect the sales during this year roughly to be 20,000 to 25,000 pieces of golf carts to be sold in the U.S. market because we have more in-depth discussions and cooperation with Lowe's directly."

我是 [馬克·麥克勞克林]。我在佛羅里達州傑克遜維爾經營一家家族辦公室。一點背景。首先，胡先生，感謝您最終至少提供了 2023 年的部分單位指導，僅涵蓋高爾夫球車的單位指導就有 20,000 到 25,000 台，而沒有在首選新聞稿或公告中報告，您至少在記錄中說到年底——在 2022 年年底的電話會議上，引用胡先生的話說，“所以對於 2023 財年，我們預計今年的銷售額大約為 20,000 到 25,000 輛高爾夫球車將在美國市場，因為我們直接與勞氏有更深入的討論和合作。”

Great statement. However, it does beg the question, why haven't we seen this in news or press release? So again, to unpack your quote, 20,000 to 25,000 units would mean a quadrupling of 2022's golf cart sales, which generated revenues of between -- which would generate revenues between $125 million and $150 million. And reviewing Kandi's data on import key software for Q1, it appears you've already shipped 6,500 units in Q1, and this is at the high end of your forecast according to your earlier disclosure. So question, do you have a further guidance update for Q2 and for the balance of the year? I have a few other questions as well. But if you would answer that.

偉大的聲明。然而，這確實引出了一個問題，為什麼我們沒有在新聞或新聞稿中看到這一點？因此，再一次打開你的報價，20,000 到 25,000 台意味著 2022 年的高爾夫球車銷量翻兩番，產生的收入介於兩者之間——這將產生 1.25 億美元到 1.5 億美元的收入。回顧 Kandi 第一季度進口關鍵軟件的數據，您似乎已經在第一季度出貨了 6,500 台，根據您之前的披露，這處於您預測的高端。所以問題是，您是否有關於第二季度和今年餘下時間的進一步指導更新？我還有其他幾個問題。但如果你願意回答這個問題。

Okay. Thank you. (foreign language)

好的。謝謝。 （外語）

(foreign language)

（外語）

[Interpreted] So thank you for your questions. So our estimated sales for the Q2 roughly around 6,000 pieces of the golf carts. And for the half year 2023, we expect there will be a sales of roughly 10,000 pieces of the golf carts.

[已翻譯] 謝謝你的提問。因此，我們估計第二季度的銷量約為 6,000 輛高爾夫球車。到 2023 年半年，我們預計高爾夫球車的銷量將達到約 10,000 輛。

How many pieces were sold in Q1 according to your press release today?

根據您今天的新聞稿，第一季度售出了多少件？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So for the first quarter of 2023, roughly around 3,000 pieces of the golf carts were sold.

[解讀]因此，在 2023 年第一季度，大約售出了大約 3,000 輛高爾夫球車。

Another key point that is -- deserves a press release was that Kandi was able to close on a new contract directly with Lowe's and to bypass the middleman Coleman. Two questions. Looking at Lowe's website for a search of Kandi products, some 16 items show up under golf carts in the Kandi brand, which seems to be the 2-seat utility golf cart with dumped bed and winch and the 6 passenger golf carts, which, by the way, are showing available at Lowe's with both the AGM lead-acid for $12,999 and the lithium batteries for $1,000 more.

另一個值得發布新聞稿的關鍵點是 Kandi 能夠直接與 Lowe's 簽訂新合同並繞過中間人 Coleman。兩個問題。在 Lowe 的網站上搜索 Kandi 產品，Kandi 品牌的高爾夫球車下出現了大約 16 件商品，這似乎是帶有傾倒床和絞盤的 2 座多功能高爾夫球車和 6 名乘客高爾夫球車，其中，順便說一句，在 Lowe's 有售，AGM 鉛酸電池售價 12,999 美元，鋰電池售價高出 1,000 美元。

The more conventional 4-passenger Kandi carts still show up under Coleman on the Lowe's sites with the AGM lead-acid batteries. Question, did management give more detail as to how Kandi was able to secure this deal direct? And where does this leave Kandi's relationship with Coleman? And what is the likelihood Lowe's will pick up new Kandi products other than golf carts?

更傳統的 4 人 Kandi 手推車仍然出現在 Coleman 的領導下，在 Lowe 的站點上使用 AGM 鉛酸電池。問題是，管理層是否提供了更多關於康迪如何能夠直接獲得這筆交易的細節？這讓坎迪與科爾曼的關係何去何從？ Lowe's 購買除高爾夫球車以外的新 Kandi 產品的可能性有多大？

Thank you for your question. (foreign language)

謝謝你的問題。 （外語）

(foreign language)

（外語）

[Interpreted] So as for your concerned questions at present under the brand of Coleman, there's only 1 golf cart available in the market, which is a 4-seat lead-acid battery models. As for the consideration, primarily the price and the gross profit. However, to Lowe's, they hope to become a leader and occupy more market in the field of the outdoor recreational electric vehicles.

[解讀]那麼關於大家關心的問題，目前Coleman品牌的高爾夫球車在市場上只有一款，是4座鉛酸電池車型。至於對價，主要是價格和毛利。但是，對於Lowe's來說，他們希望成為戶外休閒電動車領域的領導者，佔據更多的市場。

So Lowe's hopes that we, Kandi, can provide more diversified products to help them to achieve this goal. And because of the highly diversification of our products, we can customize the product for our customer Coleman according to their need. And yes, there is no conflict for us to supply our products to the Lowe's. So in this year, it's likely that you will see more Kandi products at Lowe's market?

所以勞氏希望我們康迪能提供更多元化的產品，幫助他們實現這個目標。並且由於我們產品的高度多樣化，我們可以根據客戶的需要為我們的客戶 Coleman 定制產品。是的，我們向 Lowe's 供應產品並不存在衝突。那麼在今年，您可能會在 Lowe's 市場上看到更多的 Kandi 產品嗎？

To that end, the Kandi America website added a new $13,999 heavy-duty utility vehicle under the EV link called The Cowboy e10K, the husky lithium powered vehicle. It's perfect for the offer -- a perfect offering for the Lowe's demographic, but nothing has been mentioned yet. Do you anticipate Lowe's picking up this Cowboy line as well? And why aren't we telling the world how great we are?

為此，Kandi America 網站在名為 The Cowboy e10K 的 EV 鏈接下添加了一款價值 13,999 美元的新型重型多功能車，這是一款堅固的鋰動力汽車。它非常適合提供 - 非常適合 Lowe's 人群，但尚未提及任何內容。您是否預計 Lowe's 也會採用該 Cowboy 系列？為什麼我們不告訴世界我們有多偉大？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So Lowe's is well aware of our new product development. So yes, they know about our new model, the Cowboy e10K. And I believe that Lowe's also considering this product. In the meantime, we have the plans to promote this product to other retail and chain stores to increase our sales channels.

[解讀]所以Lowe's非常了解我們的新產品開發。所以是的，他們知道我們的新型號 Cowboy e10K。而且我相信 Lowe 也在考慮這款產品。同時，我們計劃將該產品推廣到其他零售店和連鎖店，以增加我們的銷售渠道。

And what about more visibility from the company in terms of putting out press releases introducing all this great news to the investing public, which I'm sure would be exceedingly interested in this great company?

在發布新聞稿向投資大眾介紹所有這些好消息方面，公司的知名度如何，我敢肯定投資大眾會對這家偉大的公司非常感興趣？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] Yes. So based on our development and our operations, we will release the news in a timely manner.

[解釋]是的。因此，根據我們的發展和運營情況，我們會及時發布消息。

But we haven't released anything about Lowe's and the development of selling to them directly, correct? And will we soon so people can realize this development?

但是我們還沒有發布任何關於 Lowe's 的信息以及直接向他們銷售的發展，對嗎？我們會很快讓人們意識到這一發展嗎？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So well, actually, at the moment, we are in the early stage of the cooperation with Lowe's. It's not like we're not going to disclose the news. However, we would like to consolidate and get our fundamental done and wait until the cooperation becomes a more massive volume, then will disclose accordingly.

[解讀]那麼好吧，實際上，目前我們正處於與Lowe's合作的早期階段。這不像我們不打算透露這個消息。但是，我們想鞏固並完成我們的基本工作，等到合作變得更龐大時，才會相應地披露。

Our strategy is always get things done first, then we will release the news accordingly, when it's (inaudible) and becomes more mature.

我們的策略始終是先把事情做好，然後我們會相應地發布新聞，當它（聽不清）變得更加成熟時。

Yes. I appreciate that answer. In any meal, there's always an appetizer. And to that end, perhaps you could put something out there relatively soon.

是的。我很欣賞這個答案。在任何一餐中，總有一道開胃菜。為此，也許您可以相對較快地推出一些東西。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] Thank you for your suggestion.

[已翻譯] 謝謝你的建議。

Very good. Now when we go back to your numbers, the unit guidance for 2023 as given on the year-end 2022 conference call, the unit guidance for golf carts alone was 20,000 to 25,000 pieces. And is that for golf carts alone via Lowe's, I take it, what about all vehicle units from the K32 to golf carts to the Cowboy, what is the total unit projection?

非常好。現在，當我們回到你的數字時，在 2022 年底電話會議上給出的 2023 年單位指導，僅高爾夫球車的單位指導就是 20,000 到 25,000 件。我認為，對於僅通過 Lowe's 的高爾夫球車而言，從 K32 到高爾夫球車再到 Cowboy 的所有車輛單位如何，總單位預測是多少？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So yes, first of all, for your questions, the estimate of sales 20,000 to 25,000 pieces of the sales only indicate for the model the golf carts. It doesn't include any other UTVs such as the K32 or the e10K. In the meantime, we try to spend our sale channels to consolidate our resources hopefully, we can have a better sales up this year.

[解讀]所以是的，首先，對於你的問題，銷售量的估計20,000到25,000件的銷售量僅針對型號高爾夫球車。它不包括任何其他 UTV，例如 K32 或 e10K。同時，我們也在努力利用我們的銷售渠道來整合我們的資源，希望我們今年能有一個更好的銷售增長。

And how soon does Kandi expect to get the K32 pickup truck approved for sale under the farm truck rules as mentioned on the last conference call?

根據上次電話會議中提到的農用卡車規則，康迪希望 K32 皮卡車多久能獲准銷售？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So actually, we have taken all the approvals necessary for the sales of the launch of K32 in the U.S. market. We estimate there will be roughly 200 pieces of the K32 in this year, but then it's ready to be launched in the U.S. market.

[解讀] 所以實際上，我們已經獲得了在美國市場銷售 K32 所需的所有批准。我們估計今年將有大約 200 件 K32，但隨後將準備在美國市場推出。

That's very good news. I have to commend financially commend you -- your management skills, looking at a huge jump in gross margins from 19.8% in 2021 to -- on $30 million in sales to $22.6 million in 2022, on $71 million in sales. A bigger number this year and a bigger gross margin that's spectacular, when one considers a big inflationary jump in the supply chain, shipping and transportation.

這是個好消息。我必須在財務上讚揚你——你的管理技能，考慮到毛利率從 2021 年的 19.8% 大幅躍升至 3000 萬美元到 2022 年的 2260 萬美元，銷售額為 7100 萬美元。考慮到供應鏈、航運和運輸的通脹大幅上漲，今年的數字和毛利率都非常驚人。

Most important question, when you add up these other product offerings in addition to the golf carts and things look like they're really going to ramp up here, at low end, what would you expect this year's approximate revenues, gross profits and margins to be on a low end, all in, all the product offerings?

最重要的問題是，當你把除了高爾夫球車之外的其他產品加起來，看起來它們真的會在這裡增加時，在低端，你預計今年的收入、毛利潤和利潤率大約是多少？處於低端，全力以赴，提供所有產品？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So due to our gradual advancement of our strategic adjustments, right, we believe that the revenue of this year definitely increased significantly. And then the gross margin were roughly around the same level of the Q1 of this year.

[解讀] 所以由於我們逐步推進我們的戰略調整，對吧，我們相信今年的收入肯定是大幅增長的。然後毛利率與今年第一季度大致相同。

Well, I really appreciate your patience and I have a great deal of respect for your skills, your management, and I congratulate you.

嗯，我真的很感謝你的耐心，我非常尊重你的技能，你的管理，我向你表示祝賀。

(foreign language)

（外語）

Our next question is from the line of [Kahnau], private investor. As there is no response from the participant's line, may I request the management that we move to the next question?

我們的下一個問題來自私人投資者 [Kahnau]。由於與會者的線路沒有回應，我可以請求管理人員我們轉到下一個問題嗎？

Sure.

當然。

Our next question is from the line of Mike Pfeffer from Oppenheimer.

我們的下一個問題來自 Oppenheimer 的 Mike Pfeffer。

Thanks for taking my question, which has to do with Kandi's new emerging lithium battery business. From the 10-K, it seems that this is another hot sector for Kandi. The company reported battery sales in 2021 of only $4.5 million with a 10.8% margin.

感謝您提出我的問題，這個問題與康迪新興的鋰電池業務有關。從10-K來看，這似乎又是康迪的一個熱門板塊。該公司報告稱，2021 年電池銷售額僅為 450 萬美元，利潤率為 10.8%。

This impressively jumped fivefold to $24 million in '22. However, the gross margin went down to 4.6% from what I can get out of the 10-K, it appears that almost all of last year's battery sales were sold to third parties, which in the current competitive environment in lithium vehicle batteries in China squeezes the margins.

這在 22 年令人印象深刻地增長了五倍，達到 2400 萬美元。然而，從我能得到的 10-K 毛利率下降到 4.6%，看來去年的電池銷售幾乎全部賣給了第三方，這在當前中國鋰汽車電池的競爭環境下擠壓利潤率。

However, this year, as can be seen by Lowe's now offering a lithium battery option for Kandi golf carts in the U.S. One would think Kandi's margins would increase significantly as would likely be reflected in total battery sales. If you could just pass that on, and I'll ask 3 brief questions, please?

然而，今年，正如 Lowe's 現在在美國為 Kandi 高爾夫球車提供鋰電池選項所見，人們會認為 Kandi 的利潤率將顯著增加，這可能會反映在電池總銷售額中。如果你能把它傳遞下去，我會問 3 個簡短的問題，好嗎？

(foreign language)

（外語）

Am I correct in my assumption that last year's battery sales went to third parties?

我假設去年的電池銷售給了第三方，我的假設是否正確？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So for past year 2022, it's true that primarily of lithium-ion cells was sold to the third-party customers. We kind of triggered our strategy for this year. We're going to have more demand from our own in the company's sales. So of course, in this case, it will not be reflected on the consolidated sales on the financial statements. So you will show a less or decrease of their sales in the lithium-ion cells sector, because there's more demand from our own in the company transaction.

[解讀] 所以在過去的 2022 年，確實主要是鋰離子電池賣給了第三方客戶。我們有點觸發了今年的戰略。我們將在公司的銷售中有更多來自我們自己的需求。所以當然，在這種情況下，它不會反映在財務報表的合併銷售額上。所以你會顯示他們在鋰離子電池領域的銷售額減少或減少，因為在公司交易中我們自己的需求更多。

And so is Kandi batteries only lithium? And is it the goal to have all the company's vehicles powered by its own lithium batteries?

那麼康迪電池是否只有鋰？公司的所有車輛都由自己的鋰電池供電是目標嗎？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] Yes. So basically, we're going to develop a direction of adopting lithium-ion cells.

[解釋]是的。所以基本上，我們要發展一個採用鋰離子電池的方向。

And then could you give us a forward look at what the company is expecting from the battery's division this quarter and full year? And that's all from me.

然後你能給我們介紹一下公司對電池部門本季度和全年的期望嗎？而這一切都來自於我。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] During the past year due to the surge of the raw material price of those iron and then other cells materials in our China market, it caused all the uncertainty in the market, of course, it hurts the demand and then ourselves. From the fourth quarter of last year until April of this year, our battery sector was in the state of net loss.

[解讀] 在過去的一年裡，由於我們中國市場上那些鐵和其他電池材料的原材料價格飆升，它造成了市場的所有不確定性，當然，它傷害了需求，然後傷害了我們自己。從去年四季度到今年四月份，我們的電池板塊一直處於虧損狀態。

At present, the domestic market, the China market of the raw material price of the batteries was in a decreasing trend. So hopefully, it will have a positive impact to the market and then hopefully, our sales will be improved.

目前國內市場，中國市場電池原材料價格呈下降趨勢。因此，希望它會對市場產生積極影響，然後希望我們的銷售能夠得到改善。

Our next question is from the line of Walter Hill from Carty & Co.

我們的下一個問題來自 Carty & Co. 的 Walter Hill。

My question comes under 2 topics. The first has to do with the opening comment Mr. Hu made on a prior conference call, specifically he said, "We will constantly launch new products in electric vehicle business to gain share and create more value for our shareholders."

我的問題屬於 2 個主題。首先是胡先生在之前的電話會議上的開場白，他具體說，“我們將在電動汽車業務中不斷推出新產品，以爭取份額並為我們的股東創造更多價值。”

I have questions in 2 related topics. First, while there was no company PR, as previously mentioned on the new [hefty] off-road vehicle to Kandi Cowboy e10 selling for $13,900, which have recently appeared on the Kandi website with no publicity available to shareholders. Are there any other major surprises like the Cowboy on the near horizon?

我有 2 個相關主題的問題。首先，雖然沒有公司公關，但正如之前提到的售價 13,900 美元的新款 [重型] 越野車 Kandi Cowboy e10，最近出現在 Kandi 網站上，沒有向股東公開。是否還有其他重大驚喜，如近期出現的牛仔？

Okay. (foreign language)

好的。 （外語）

(foreign language)

（外語）

[Interpreted] So our new model, the e10K UTV is the pure electric model that developed to tackle a 500cc field UTV market. We have started to have mass production of this model, since April this year, then it will be sold to the retail store of the Lowe's and other dealer channels. So whether there will be a major surprise like what we have for the (inaudible) it depends on the market direction. We still believe that this model will be a very competitive model to the market.

[解讀] 因此，我們的新型號 e10K UTV 是為應對 500cc 野外 UTV 市場而開發的純電動型號。我們已經開始量產這款車型，從今年4月開始，將在Lowe's的零售店和其他經銷商渠道銷售。因此，是否會出現像我們所擁有的（聽不清）那樣的重大驚喜取決於市場方向。我們仍然相信該模型將成為市場上非常有競爭力的模型。

My second topic is regarding to the Haikou Hainan 100,000 capacity EV manufacturing facility designed and built by Kandi a few years ago. At that time, it appeared Kandi was going to produce most of its own fleet of EVs. Questions on the topic are, a, what vehicles and our parts specifically are being manufactured or assembled in this facility? B, how many units of various vehicles were built in this facility in 2022? And what are your expectations in units do you expect to be built this year?

我的第二個話題是關於康迪幾年前設計建造的海口海南10萬輛EV製造工廠。當時，康迪似乎打算生產自己的大部分電動汽車。關於該主題的問題是，a，該工廠正在製造或組裝哪些車輛和我們的零件？ B，2022 年該設施建造了多少輛各種車輛？您對今年建造的單位有何期望？

C, does Kandi also make its chassis and body parts in this facility or is it just a vehicle assembly? And D, do you attribute this facility's close proximity to only a mile or 2 from the export shipping port of Haikou as being a major reason, Kandi was able to have such a great year in China in 2022, while 90% of the China manufacturers have a bad or terrible year due to supply chain and transportation problems?

C、康迪是否也在這個工廠生產底盤和車身零件，還是只是組裝車輛？ D，您是否認為該設施距離海口出口航運港僅一英里或兩英里是一個主要原因，康迪能夠在 2022 年在中國度過如此美好的一年，而 90% 的中國製造商由於供應鍊和運輸問題，今年過得不好或糟糕？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] As for your first question. So basically, the company's electric vehicles, including the electric vehicle components and then the off-highway vehicles like low-speed vehicle, the pure electric utility vehicles, those top carts, the ADB, UTVs as well as the component of our electric vehicle K23 are all produced and manufactured in our Hainan facilities.

[解讀]關於你的第一個問題。所以基本上，公司的電動汽車，包括電動汽車組件，然後是非公路車輛，如低速車輛、純電動多用途車、那些頂級手推車、ADB、UTV 以及我們的電動汽車 K23 的組件全部在我們的海南工廠生產和製造。

Interpreted So as for the second question, during the 2022, our Hainan plant mainly produced the golf carts with more than 10,000 of pieces. So more over certain parts of the K23 electric vehicle package and then the K32 product has also been manufacturing during last year. This year, we expect that the production for the golf cart product will be roughly 20,000 to 25,000 pieces, and then there will be also 200 pieces for the K32 UTVs. As for the K23 EV package, we expect there will be a small amount to be manufactured as well.

解讀 那麼關於第二個問題，2022年，我們海南工廠主要生產的是高爾夫球車，10000多輛。因此，K23 電動汽車套件的某些部分以及 K32 產品也在去年生產。今年，我們預計高爾夫球車產品的產量約為 20,000 至 25,000 件，然後 K32 UTV 也將有 200 件。至於 K23 EV 套件，我們預計也會有少量生產。

Interpreted So our Hainan plant, the facility, actually is a comprehensive production site that includes all 4 major processes of the car manufacturing including the understanding, the welding, the painting and then the final assembly of the EV vehicle's components.

解讀 所以我們海南工廠，這個facility，其實是一個綜合性的生產基地，包括汽車製造的所有4個主要過程，包括理解，焊接，塗裝，然後是EV汽車部件的最終組裝。

Interpreted Yes. And as for your last question that export shipping cost in Haikou is close to our facilities. That's not the major reason that we are able to have a great year during 2022. Indeed, the capacity of the exports in Haikou is relatively small. It doesn't meet our full needs. During the past year, 2022, roughly 50% of our products were shipped from the Shenzhen port. So hopefully, that can address your question.

解釋是的。至於你最後一個問題，海口的出口運輸成本接近我們的設施。這並不是我們能夠在 2022 年取得好成績的主要原因。事實上，海口的出口能力相對較小。它不能滿足我們的全部需求。在過去的一年裡，也就是 2022 年，我們大約 50% 的產品是從深圳港運出的。希望這可以解決您的問題。

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

我們的下一個問題來自 Arthur Porcari 的企業戰略。

Sorry, I've got a sore throat over here, so I'll best I can here. I want to end with some questions on reported Q1 numbers, which we just saw. But first, I want to make a few points to management. For years, Kandi's investors have suffered in the stock market. I know it sounds like a broken record, but I was just repeating again, not because of that business failure, quite contrary at the uncontested NASDAQ EV first mover a dozen years ago in the global EV sector, Kandi survived against all odds, where there's a 90% likelihood any undercapitalized first mover will fail or be bought out.

抱歉，我這邊喉嚨痛，所以我會盡我所能。最後，我想就我們剛剛看到的報告的第一季度數字提出一些問題。但首先，我想對管理層說幾點。多年來，康迪的投資者在股市中飽受煎熬。我知道這聽起來像是一個破紀錄，但我只是再次重複，不是因為那次業務失敗，恰恰相反，十幾年前在全球電動汽車領域毫無爭議的納斯達克電動汽車先行者，坎迪克服了一切困難，那裡有任何資金不足的先行者有 90% 的可能性會失敗或被收購。

However, Kandi not only survived these 14 years, but find itself today in some parallel universe where this debt-free company stock is trading around $3, about $1 off its all-time low and 85% below its $22.50 all-time high, which was, I think, 2014.

然而，Kandi 不僅在這 14 年中倖存下來，而且發現自己今天處於某個平行宇宙中，這家無債務公司的股票交易價格約為 3 美元，比歷史低點低約 1 美元，比歷史高點 22.50 美元低 85%，這我認為是 2014 年。

It's also trading at discount to $3.2 cash, a 45% discount to the $5.25 book value. And all of this at a time when Kandi is now rapidly growing with its e-golf cart business at Lowe's and others as well. While 90% is tech stops, particularly in the EV sector are seeing a significant business in (inaudible) Clearly, this has to change. I pass that part on to Mr. Hu, please, or whoever.

它還以低於 3.2 美元現金的價格交易，比 5.25 美元的賬面價值折價 45%。所有這一切都發生在康迪 (Kandi) 憑藉其在勞氏 (Lowe's) 和其他公司的電子高爾夫球車業務快速增長的時候。雖然 90% 是技術停止，特別是在電動汽車領域，但在（聽不清）中看到了重要的業務，顯然，這必須改變。請將那部分轉給胡先生，或其他任何人。

(foreign language).

（外語）。

Okay. Well, as we know, Kandi has never had used an actual full-service, sell-side brokerage or investment banking firm to raise any money. But in turn, that just means Kandi has no accredited analysts to applying to give comfort to funds. So they avoid the stocks, what is the company going to do, if anything, to try to track Wall Street Analysts not putting out press releases is not the solution. That's question one.

好的。好吧，正如我們所知，Kandi 從未使用過真正的全方位服務、賣方經紀或投資銀行公司來籌集任何資金。但反過來，這也意味著康迪沒有合格的分析師來申請安撫資金。所以他們避開股票，公司打算做什麼，如果有的話，試圖追踪華爾街分析師不發布新聞稿不是解決方案。這是第一個問題。

(foreign language) What's your question?

（外語）你有什麼問題？

That was the question. What is the company -- what is the company doing if anything to attract Wall Street Analysts?

這就是問題所在。公司是什麼——如果有什麼吸引華爾街分析師的話，公司在做什麼？

Okay. (foreign language)

好的。 （外語）

(foreign language)

（外語）

[Interpreted] First of all, thank you very much for your concern and support for our company. First of all, we appreciate your suggestions. In recent years, due to the orderly competition in our Chinese -- the China's electric vehicle market, right, we have been forced to make some very difficult strategic adjustment in order to survive. Well, in the end, I think the capital market, we need the data to support, right? We always adopt the model of the field work (inaudible).

【解讀】首先，非常感謝您對我司的關心和支持。首先，我們感謝您的建議。這幾年，由於我們中國——中國的電動車市場，對吧，由於競爭的有序，為了生存，我們不得不做一些非常艱難的戰略調整。那麼最後，我覺得資本市場，我們是需要數據來支撐的，對吧？我們總是採用現場工作的模式（聽不清）。

So our goal is always to enhance our fundamental enhance ourselves. So you can tell that from this quarter finally we can turn our net deficit the net income to net -- from net loss to net income in this current quarter. So hopefully, with our stronger fundamentals, better performance in terms of the managed shares and then our revenue this kind of data can be recognized by the market and also by the analysts. So then they will come back to us and our company. So yes, basically, our goal is to (inaudible) momentum stronger and better.

所以我們的目標始終是提升我們的根本提升自己。所以你可以看出，從本季度開始，我們最終可以將淨赤字從淨收入轉為淨收入——從本季度的淨虧損轉為淨收入。因此，希望憑藉我們更強大的基本面、更好的管理股份表現以及我們的收入，這種數據能夠得到市場和分析師的認可。這樣他們就會回到我們和我們的公司。所以是的，基本上，我們的目標是（聽不清）勢頭越來越好。

Okay. Lack of breaking news types of press releases. As we've only had 2 in the past 12 months. Kandi used to do 30 or 40 of these, when they were doing stuff in just China. Now we've added -- just in the last few months, Kandi's added 3 new $10,000 to $15,000 vehicles, no press releases on any of these 3 just since the last conference call.

好的。缺乏突發新聞類型的新聞稿。因為我們在過去 12 個月裡只有 2 次。康迪曾經做過 30 或 40 個這樣的東西，當時他們只在中國做事。現在我們已經添加了 - 就在過去幾個月裡，Kandi 增加了 3 輛價值 10,000 美元到 15,000 美元的新車，自上次電話會議以來沒有關於這 3 輛的任何新聞稿。

By the way, that's how many we've added. So I ask Hu, why none of these U.S.-based vehicles are being press released. Her response was along the lines of the responsibility to announce these products go through Kandi America, not Kandi the parent company. It has its own -- Kandi American referred to as its own PR company.

順便說一下，這就是我們添加的數量。所以我問胡，為什麼這些美國的車輛都沒有發布新聞稿。她的回應是有責任宣布這些產品通過康迪美國公司，而不是康迪母公司。它擁有自己的——Kandi American，簡稱為自己的公關公司。

While this sounds totally ridiculous. If true, this policy has got to change. Putting PRs out in the U.S. when more than 75% of your product sales are big ticket items in the U.S. should even further increase product sales. Think of where Tesla stock would be if they ignored sharing new product and updates through news releases with its shareholders. They wouldn't exist. They don't advertised. They don't have dealerships. Anyway, pass that on, please.

雖然這聽起來很荒謬。如果屬實，則必須更改此政策。當您超過 75% 的產品銷售額是美國的大件商品時，在美國發布 PR 應該會進一步增加產品銷售額。想一想如果特斯拉忽略通過新聞發布與股東分享新產品和更新，他們的股票會怎樣。他們不會存在。他們不做廣告。他們沒有經銷商。不管怎樣，請把它傳下去。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] Thanks, again, for your concern and advise. Again, usually, we take the strategy and the motto of fewer words and many deeds in terms of our operations and that's our promotion. But then we definitely, we will take your advice and consideration in our upcoming IO plan, and yes, we try to fine-tune by (inaudible).

[解讀]再次感謝您的關心和建議。同樣，通常，我們在運營方面採取少說多做的策略和座右銘，這就是我們的推廣。但是我們肯定會在即將推出的 IO 計劃中考慮您的建議和考慮，是的，我們會嘗試通過（聽不清）進行微調。

Okay. Let me just kind of you get wrap it up here with a few questions and have to do with the numbers that just came out today. I just had a chance to take a quick brief look at it. We mentioned on the last conference call about this import key software that's available to I guess those of us, who are members of our chatboards subscribe to it, and they're pretty good about carrying all the shipments back and forth, what's going through internationally through containers.

好的。讓我用幾個問題來總結一下，這些問題與今天剛公佈的數字有關。我只是有機會快速瀏覽一下。我們在上次電話會議上提到了這個導入密鑰軟件，我想我們這些聊天板的成員都可以訂閱它，他們非常擅長來回運送所有貨物，國際上正在發生的事情通過容器。

According to their software that tracks the global movements and international tanker shipping sector, Kandi exported some 6,600 vehicles to include 5,900 golf carts and 700 LSEs in Q1, which would put it on par to reach the high end of Mr. Hu's 25,000 unit guidance for the year.

根據他們跟踪全球動向和國際油輪運輸行業的軟件，康迪第一季度出口了約 6,600 輛汽車，其中包括 5,900 輛高爾夫球車和 700 輛 LSE，這將達到胡先生 25,000 輛指導目標的高端。那一年。

I'm sorry, can you slow down with the number you said 6,600. Yes, yes.

對不起，你能不能用你說的 6600 這個數字慢點。是的是的。

6,600 vehicles were showing up as being golf carts. Now maybe that's mislabeled, when we put them in containers, but I think you have to be pretty honest about that. And some 700 LSEVs. So in Q1, I would put them on par to reach the high end of Mr. Hu's 25,000 guidance for the year and I have more to add.

6,600 輛高爾夫球車出現了。現在，當我們將它們放入容器中時，也許貼錯了標籤，但我認為你必須對此非常誠實。還有大約 700 輛 LSEV。所以在第一季度，我會把它們看齊，以達到胡先生今年 25,000 指導的高端，我還有更多要補充的。

(foreign language) Keep going.

（外語）繼續。

Okay. And -- let's see here. It would seem that the revenues would be higher in that we only reported $22 million this quarter in total revenues, but we've seem to have done about the same according import fee about the same number of vehicles, 14,000 to 15,000 total. Now I guess, what we really need to know is with the company showing such high margins to start with, we've been told that Kandi's goal is to provide almost all the drivetrain parts and batteries, that number should increasing overall for total revenues.

好的。而且——讓我們看看這裡。收入似乎會更高，因為我們本季度的總收入僅為 2200 萬美元，但根據進口費用，我們似乎對相同數量的車輛（總共 14,000 到 15,000 輛）做了大致相同的事情。現在我想，我們真正需要知道的是公司一開始就顯示出如此高的利潤率，我們被告知康迪的目標是提供幾乎所有的動力傳動系統部件和電池，這個數字應該會增加總收入。

When even now Kandi batteries appeared in the U.S. vehicles. So if we take an average retail price of, say, $10,000 per unit, how much is Kandi gross of this? And what is the time frame between shipments to the U.S. and anticipated sales to retailers? Want me to do that again?

即使是現在，康迪電池也出現在美國汽車上。因此，如果我們採用平均零售價，比如每件 10,000 美元，那麼 Kandi 的毛收入是多少？運往美國和預計向零售商銷售之間的時間間隔是多少？要我再做一次嗎？

Alan, did you get the part?

艾倫，你得到那個角色了嗎？

Yes, that would be great if you can come again to the question, so to clarify. (inaudible).

是的，如果你能再次回到這個問題，那就太好了，所以要澄清一下。 （聽不清）。

It apparently -- it appears that we have shipped almost 15,000 units in the 2 years, according to import key to the United States. And in the last 2 quarters, I'm sure -- sorry, I think, 14,000 to 15,000 in just the last quarter of last year and the first quarter of this year.

顯然 - 根據美國的進口密鑰，我們在 2 年內似乎已經出貨了近 15,000 台。在過去的兩個季度中，我敢肯定——抱歉，我認為，僅在去年最後一個季度和今年第一季度就有 14,000 到 15,000 人。

But we've only booked so far maybe 10,000-or-so or even maybe less, I don't know what 22,000 (inaudible) doesn't break that out. But I'm just kind of curious, if the average price is $10,000 in retail, what should that generate per unit to Kandi?

但到目前為止，我們只預訂了 10,000 左右甚至更少，我不知道 22,000（聽不清）沒有打破這一點。但我只是有點好奇，如果平均零售價為 10,000 美元，那麼 Kandi 每單位產品應該產生什麼？

Okay. (foreign language)

好的。 （外語）

(foreign language)

（外語）

[Interpreted] So well, when you talk about our competitive data of the import and then our sales, of course, there is some kind of the lag time because we recognize ourselves based on the revenue recognition methodologies for the U.S. GAAP. And of course, there will be some kind of a timing difference between the sales and then the import -- I mean, the export to the U.S. market.

[解釋] 好吧，當你談到我們的進口競爭數據，然後是我們的銷售時，當然會有某種滯後時間，因為我們根據美國公認會計原則的收入確認方法來認識自己。當然，銷售和進口之間會有某種時間差異——我的意思是，出口到美國市場。

Can you be more specific? Is it's like 90 -- plus 90 days, 60 days? And also basically, bottom line, if it's $10,000 sticker price, what are we actually selling for $3,000, $4,000, $5,000 that we would ultimately book in revenues?

你可以說得更詳細點嗎？是不是像 90——加上 90 天，60 天？而且基本上，底線，如果它是 10,000 美元的標價，我們實際以 3,000 美元、4,000 美元、5,000 美元的價格出售什麼，我們最終會記入收入？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So as for your question, it really depends on the actual sales. There's no really standard timeframe. It depends on how we fulfill our terms and how we can meet the requirement to recognize the revenue. So it depends on how the transaction get closed in the U.S. So that's the timing of how like 30 days or 60 days patient export and the sales (inaudible).

[解讀]所以你這個問題，其實要看實際銷量。沒有真正標準的時間表。這取決於我們如何履行我們的條款以及我們如何滿足確認收入的要求。所以這取決於交易在美國如何結束。這就是 30 天或 60 天患者出口和銷售（聽不清）的時間。

So again, we recognize all the sales based on the U.S. GAAP requirement. And so to make sure the numbers are fairly presented. As for the margin, roughly for each pieces of the golf carts model, roughly over 30% of the gross margins for each pieces of the golf carts.

因此，我們再次根據美國公認會計原則的要求確認所有銷售額。所以要確保數字是公平呈現的。至於毛利率，大致是每輛高爾夫球車型號，約佔每輛高爾夫球車毛利率的30%以上。

That's an incredible number. I mean, that's great. That's an incredible number. If you do 25,000 golf carts alone this year and if you can somehow get $5,000 per cart, that's $125 million with a 30% margin.

這是一個令人難以置信的數字。我的意思是，那太好了。這是一個令人難以置信的數字。如果今年僅生產 25,000 輛高爾夫球車，並且每輛高爾夫球車能以某種方式獲得 5,000 美元，那麼利潤率為 1.25 億美元，利潤率為 30%。

Anyway, the last question have to deal with could you address the drop in lithium battery sales and expectations for this division in the balance of the year's?

無論如何，最後一個問題必須解決，您能否解決鋰電池銷量的下降以及該部門在今年餘下時間的預期？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So as a question we -- there's a similar answers to our former question from another investor. So basically, there are 2 reasons contribute to the decrease of the sales of lithium-ion sales. First of all, is the uncertainty in the Chinese market. During the past year of 2022, the raw material price of the batteries has surged significantly.

[解釋] 所以作為一個問題，我們 - 另一位投資者對我們之前的問題有類似的答案。所以基本上，有兩個原因導致鋰離子銷量下降。首先，是中國市場的不確定性。剛剛過去的2022年，電池原材料價格大幅上漲。

So -- and that caused all the uncertainty and further demand and other sales in the domestic market of China. Second of all, we have started to absorb more and more of our lithium-ion sales to our own products such as the golf carts and other products because that's considered as an intercompany sales, we have not recognized that to have our consolidated financials, because they will be eliminated.

所以——這導致了中國國內市場的所有不確定性和進一步的需求和其他銷售。其次，我們已經開始將越來越多的鋰離子銷售吸收到我們自己的產品中，例如高爾夫球車和其他產品，因為這被視為公司間銷售，我們沒有意識到擁有我們的合併財務，因為他們將被淘汰。

So basically, we recognize those sales as per our U.S. GAAP. And so certain sales with the intercompany transactions will not be presented separately.

所以基本上，我們根據美國公認會計原則確認這些銷售額。因此，某些與公司間交易有關的銷售將不會單獨列報。

Okay. Well, 1 -- actually, I said that was the last question. I just -- 1 other comment over here. If you -- is it unreasonable to expect the $150 million to $200 million in revenues this year? I mean just based on just the golf carts alone, not just based on 1 but overall?

好的。好吧，1 -- 實際上，我說過這是最後一個問題。我只是 - 1 其他評論在這裡。如果你 - 預計今年 1.5 億至 2 億美元的收入是不合理的嗎？我的意思是僅基於高爾夫球車，而不是僅基於 1，而是基於整體？

Are you asking, are we expecting $150 million to $200 million revenue forecasting for this whole year?

您是在問，我們是否預計全年的收入預測為 1.5 億至 2 億美元？

Right.

正確的。

Including everything, right? (foreign language)

包括一切，對吧？ （外語）

(foreign language)

（外語）

[Interpreted] So for our forecast, we believe that the amount will be roughly $150 million, even more the top-line with the $200 million of the USD sales for this year. I think we can achieve that goal.

[解讀] 因此，對於我們的預測，我們認為金額將約為 1.5 億美元，甚至超過今年 2 億美元的銷售額。我認為我們可以實現這個目標。

Fantastic. One last thing. It's been 9 years, since we've had a shareholders day in the United States of Mr. Hu's management, I think we're due for another one. What's your thoughts on that?

極好的。最後一件事。已經 9 年了，自從我們在美國舉辦胡先生管理層的股東日以來，我想我們應該再舉辦一次。你對此有何看法？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So our plan is once the transition succeed, with our order fundamental become stronger, then we will come to the U.S. market to meet up with all the investors.

【解讀】所以我們的計劃是一旦轉型成功，我們的訂單基本面變得更強大，然後我們將來到美國市場與所有投資者會面。

Sounds like you're already -- almost there. If you can do $150 million to $200 million this year. It should will be a record all time for the company and with a great margins.

聽起來你已經——差不多了。如果你今年能做 1.5 億到 2 億美元。這應該是公司的歷史記錄，而且利潤率很高。

Yes, we'll do our best...

是的，我們會盡力...

Anyway, just an observation. And hey, we did a great job on getting this new product line in. Please, some press releases, let the public know, it will help your dealers, it will help everybody. They'll sell more vehicles. Shareholders want to go buy 1 maybe, the more shareholders we can bring in.

無論如何，只是一個觀察。嘿，我們在引入這個新產品線方面做得很好。請發布一些新聞稿，讓公眾知道，這將幫助您的經銷商，它將幫助所有人。他們會賣更多的車。股東們想去買1個吧，我們能引進的股東越多。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] Thank you very much.

[翻譯]非常感謝。

That was the last question for our question-and-answer session. I would like to turn the conference back over to Kewa Luo, IR Director, for any closing remarks.

這是我們問答環節的最後一個問題。我想將會議轉回給 IR 總監 Kewa Luo，聽取任何閉幕詞。

Thank you again for attending today's conference call. If you have any additional questions, feel free to contact our IR consultant Blueshirt or via e-mail to contact me directly, ir@kandigroup.com. We look forward to updating you on our next earnings call. This concludes our call for today. Thank you. You may now all disconnect.

再次感謝您參加今天的電話會議。如果您有任何其他問題，請隨時聯繫我們的 IR 顧問 Blueshirt 或通過電子郵件直接與我聯繫，ir@kandigroup.com。我們期待在下一次財報電話會議上向您通報最新情況。我們今天的呼籲到此結束。謝謝。您現在可能會全部斷開連接。

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

謝謝。會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[此記錄中標記為 [已翻譯] 的部分由現場通話中的口譯員說出。]