Kandi Technologies Group Inc (KNDI) 2023 Q4 法說會逐字稿

Greetings and welcome to the Kandi Technologies' fiscal year 2023 financial results call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Kewa Luo, Investor Relations Manager for Kandi Technologies. Thank you. You may begin.

您好，歡迎參加 Kandi Technologies 2023 財政年度財務表現電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。現在我想將會議交給主持人康迪科技投資者關係經理 Kewa Luo。謝謝。你可以開始了。

Thank you, Melissa. Hello, everyone. Thank you all for joining us on today's conference call to discuss Kandi's results for the full year 2023. Yesterday, 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.

謝謝你，梅麗莎。大家好。感謝大家參加今天的電話會議，討論 Kandi 2023 年全年業績。昨天，我們發布了一份新聞稿，介紹了結果。您可以在公司網站以及新聞專線服務上找到新聞稿。

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. Dr. Dong will deliver prepared remarks in Chinese, which I will then translate. After that, we will have a Q&A session.

今天與我通話的是董事長胡曉明先生；董學勤博士，執行長；以及財務長 Alan Lim 先生。董博士將用中文發表準備好的發言，然後我將進行翻譯。之後，我們將進行問答環節。

Before we continue. Please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US 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 expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligation to update any forward-looking statement except as required under applicable law. Please note that unless otherwise stated, all figures mentioned during the conference call are in US dollars.

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做出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性，因此公司的實際結果可能與今天表達的預期有重大差異。有關這些以及其他風險和不確定性的更多資訊包含在該公司向 SEC 提交的公開文件中。除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。請注意，除非另有說明，電話會議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, Dr. Xueqin Dong. Go ahead, Dr. Dong.

現在，讓我將電話轉給我們的執行長董學勤博士。繼續吧，董醫生。

(interpreted) Hello, everyone. I am Xueqin Dong, the CEO of Candy Technologies Group. Welcome to today's conference call. Looking back on the challenges of 2023, I am very proud of the success we achieved through our strategic pivot into off-road electric vehicles in associated parts.

（譯）大家好。我是董學勤，糖果科技集團CEO。歡迎參加今天的電話會議。回顧 2023 年的挑戰，我對我們透過策略轉向越野電動車相關零件所取得的成功感到非常自豪。

2023 was a landmark year for us as we developed and launched new products such as electric UTVs and electric mini golf carts. We beefed up our sales channels by acquiring Northern Group and expanding collaboration with Lowe's. At Lowe's, we grew our partnership by partnering more of their supercenters and dealers, thereby expanding our coverage of North America.

2023 年對我們來說是具有里程碑意義的一年，我們開發並推出了電動 UTV 和電動迷你高爾夫球車等新產品。我們透過收購 Northern Group 並擴大與 Lowe's 的合作來加強我們的銷售管道。在勞氏，我們透過與更多的超級中心和經銷商合作來擴大我們的合作夥伴關係，從而擴大了我們在北美的覆蓋範圍。

In 2023, we returned to profitability with revenue hitting its highest level of the past three years. Growth profit increased by 112% to $40.4 million and we achieved a net profit of $1.7 million, a huge swing from the $12.4 million to $1.9 million net loss in 2022. These achievements laid a solid foundation for our future growth, strengthening our belief in the potential of the electric off-road vehicle market.

2023年，我們恢復獲利，收入達到過去三年來的最高水準。成長利潤成長了 112%，達到 4,040 萬美元，淨利潤達到 170 萬美元，與 2022 年淨虧損 1,240 萬美元相比大幅波動至 190 萬美元。這些成就為我們未來的發展奠定了堅實的基礎，堅定了我們對電動越野車市場潛力的信心。

As we look to 2024, our enhanced focus on research and development will enable us to introduce more competitive all-electric off-road vehicle products. This strategy shows our confidence in the company's future growth and is a pledge to boost shareholder value.

展望2024年，我們對研發的更加重視將使我們能夠推出更具競爭力的全電動越野車產品。這項策略反映了我們對公司未來發展的信心，也是提升股東價值的承諾。

By addressing the growing demand for electrified off-road vehicles, we are confident we can achieve significant growth in 2024, which can translate into greater value for our customers and shareholders. We hope our strategic shifts are understood, and it's supported by you, our shareholders.

透過滿足對電動越野車不斷增長的需求，我們有信心在 2024 年實現顯著成長，這可以為我們的客戶和股東帶來更大的價值。我們希望我們的策略轉變得到理解，並得到你們，我們的股東的支持。

Now, we will move onto Q&A session. Chairman Hu Xiaoming and I will answer your questions. Mr. Kewa and Mr. Alan Lin will provide translation for English questions. Please go ahead and ask your questions. Operator, please go ahead.

現在，我們將進入問答環節。我和胡曉明董事長回答大家的問題。Kewa先生和Alan Lin先生將為英語問題提供翻譯。請繼續提出您的問題。接線員，請繼續。

(Operator Instructions) Mike Pfeffer, Oppenheimer & Co.

（操作員說明）Mike Pfeffer，Oppenheimer & Co.

Good morning. A couple quick comments and then a couple quick questions, please. In January, according to the Kandi American Facebook page, Mr. Hu came to the US and with senior management and first visited the PGA Expo where Kandi got Coleman Lowe's and its first 10,000 golf cart orders in 2022. Kandi was honored by the Expo as an innovator with its patented expandable mini cart by the NBC Golf Channel.

早安.請先發表一些簡短的評論，然後再提出幾個簡短的問題。根據康迪美國Facebook頁面顯示，今年1月，胡先生與高層一起來到美國，並首次參觀了PGA博覽會，康迪在展會上獲得了Coleman Lowe's及其2022年首批10,000輛高爾夫球車訂單。康迪憑藉其專利的可擴展迷你車被 NBC 高爾夫頻道評為世博會創新者。

Afterwards, he went on to meet with Lowe's Home office management to plan Kandi 's expansion for this year and beyond. Maybe you can just translate that quickly, please.

隨後，他繼續與 Lowe's Home 辦公室管理層會面，以規劃 Kandi 今年及以後的擴張計劃。也許你可以快速翻譯一下，拜託。

(spoken in foreign language)

（用外語說）

Thank you. A few weeks later, another message came up on the Facebook page announcing that Kandi was invited to present its current line of golf carts, cowboy side-by-side, e-bikes, et cetera, at Lowe's Annual All-Hands Manager Meeting. From the looks of the video on the Facebook page, it appeared that Kandi was given the largest and prime location in the display hall. And from pictures was inundated by Lowe's managers.

謝謝。幾週後，Facebook 頁面上出現了另一條訊息，宣布 Kandi 受邀在 Lowe 年度全體經理會議上展示其當前的高爾夫球車、並排牛仔車、電動自行車等產品系列。從Facebook頁面的影片來看，Kandi似乎佔據了展示廳中最大、最黃金的位置。Lowe's 經理們的照片被淹沒了。

Not surprising since Kandi has the highest price of products sold by Lowe's and managers' bonuses are based on the dollar volume of sales of their store. Here are a few questions. Maybe you can just translate that, and I'll go to the questions quickly. Thank you.

這並不奇怪，因為 Kandi 的產品售價是 Lowe's 中最高的，而且經理的獎金是根據其商店的銷售額計算的。這裡有幾個問題。也許你可以翻譯一下，我會很快回答問題。謝謝。

(spoken in foreign language)

（用外語說）

Since Lowe's has now worked with Kandi for over a year, can Mr. Hu give us any color on just how big this Lowe's relationship can evolve?

既然 Lowe's 與 Kandi 合作已經一年多了，胡先生能否透露 Lowe's 的合作關係能發展到什麼程度呢？

(spoken in foreign language)

（用外語說）

(interpreted) We are glad that our products are popular among the customers of Lowe's. This shows that our cooperation with Lowe's for more than -- in the past year has been pleasant. As our cooperation between the two parties continues to expand and deepen, on top of the golf carts that we are currently selling, there will be other products will continue to be sold in the retail stores of Lowe's. We believe that our cooperation with Lowe's will continue to expand and deepen.

（解釋）我們很高興我們的產品受到Lowe's 顧客的歡迎。這顯示我們與勞氏在過去一年多的合作是愉快的。隨著雙方合作的不斷擴大和深化，除了我們目前銷售的高爾夫球車之外，還會有其他產品繼續在Lowe's的零售店銷售。我們相信，我們與勞氏的合作將會不斷擴大和深化。

Thank you. As compared to Walmart, which at least for now, does not seem to stock the carts locally. Lowe's seems to have a rotating inventory in the store of various candy products. What are the payment terms that candy has with the various chains, primarily Lowe's and Walmart?

謝謝。與沃爾瑪相比，至少目前來看，沃爾瑪似乎並沒有在本地備貨。勞氏商店裡似乎有各種糖果產品的輪換庫存。Candy 與各連鎖店（主要是 Lowe's 和 Walmart）的付款條件為何？

(spoken in foreign language)

（用外語說）

(interpreted) Please note that on the payment terms we have with Lowe's or Walmart and some other superstores are confidential. But we what we can say is that the payment terms are certainly following the terms agreed upon by both parties.

（解釋）請注意，我們與 Lowe's 或 Walmart 以及其他一些超市的付款條件是保密的。但我們可以說的是，付款條件當然是遵循雙方商定的條件。

Okay. How many more Superstore chains over and above the five we currently know does Mr. Hu think Kandi will add over the next 12 months, and how many outlets are involved?

好的。胡先生認為，除了我們目前所知的 5 家連鎖超市之外，康迪在未來 12 個月內還將增加多少家連鎖超市？涉及多少家門市？

(spoken in foreign language)

（用外語說）

(interpreted) So for this year, on top of what we are working with the Lowe's Superstores, we have now added the cooperation with more than a dozen or so of the retail chains with different scales. Currently, we are working on the cart sales in those superstores. And in addition, on top of the cooperation of the supermarkets, we are working with the dealership with more than 300 on partnerships during 2023. And in this upcoming 2024, we are trying to work with more than 1,000 dealerships in the US market.

（解讀）所以今年我們除了跟Lowe's超市合作之外，現在又增加了跟十幾家不同規模的零售連鎖店的合作。目前，我們正在這些超市進行購物車銷售。此外，除了與超市的合作外，我們還在2023年與300多家經銷商建立合作關係。在即將到來的 2024 年，我們正在努力與美國市場的 1,000 多家經銷商合作。

Thanks. It appears that a few states, including Texas, have not yet approved the Kandi cowboy side-by-side for sale. Can you tell us what the holdup is and when it may be released? Thanks.

謝謝。包括德克薩斯州在內的一些州似乎尚未批准坎迪牛仔並排出售。您能告訴我們凍結是什麼以及何時可以釋放嗎？謝謝。

(spoken in foreign language)

（用外語說）

(interpreted) It's based on the sales plan with our partners, and these are working accordingly are currently our corporate products is selling based on our selling plan.

（解釋）這是基於我們與合作夥伴的銷售計劃，而這些計劃正在相應地工作，目前我們的公司產品正在根據我們的銷售計劃進行銷售。

Thank you. Last question, thank you. In 2023, it appears that candy sales, the big box stores were mainly golf carts. What new products are being introduced this year and then next year? Thank you.

謝謝。最後一個問題，謝謝。2023年，大賣場的糖果銷售似乎主要是高爾夫球車。今年和明年將推出哪些新產品？謝謝。

(spoken in foreign language)

（用外語說）

(interpreted) So on top of the golf carts, we'll gradually launch different order, the highly competitive electric off-road vehicle series. On top of that, we are going to launch the lithium batteries for different kind of utilizations. Moreover, we plan to develop the electric motor golf carts. Thank you.

（解讀）所以在高爾夫球車之上，我們會逐步推出不同順序、競爭激烈的電動越野車系列。最重要的是，我們將推出用於不同用途的鋰電池。此外，我們計劃開發電動高爾夫球車。謝謝。

Arthur Porcari, Corporate Strategies

Arthur Porcari，企業策略

Okay. Can you hear me?

好的。你聽得到我嗎？

Yes. I can hear you.

是的。我可以聽見你。

All right. At the last bullish November conference call, Kandi traded at $3.40 a share. At that time as a premium, its reported $2.89 per share in cash in CDs. A few days ago, it traded below $2.30, just above its 52-week low. I said bullish based on the CFO's response in that question last report, regarding the announced purchase of Kandi's second 75,000 square foot distribution assembly facility in Garland, Texas, which increased the total capacity to 125,000 square feet.

好的。在 11 月最後一次看漲的電話會議上，Kandi 的交易價格為每股 3.40 美元。當時，作為溢價，其每股現金 CD 為 2.89 美元。幾天前，其交易價格低於 2.30 美元，略高於 52 週低點。我根據財務長在上一份報告中對該問題的回答表示看漲，涉及宣布購買Kandi 位於德克薩斯州加蘭的第二個75,000 平方英尺的分銷組裝設施，該設施將總產能增加到125,000 平方英尺。

In the PR, they announced that, one of your people say, Kandi American tends to drive growth through geographic penetration across the US with this and additional distribution centers. This will likely be key to fueling demand in a timely and quarterly effective manner. That was a quote out of that.

在公關中，他們宣布，據你們的一位員工說，康迪美國公司傾向於透過這個和其他配送中心在美國各地的地理滲透來推動成長。這可能是及時、按季度有效刺激需求的關鍵。這是其中的一句話。

Let me follow it a little bit here. A shareholder follow-up question went on to ask, is it safe to assume with this added capacity reached over the next two years, the revenues could approach $500 million, and that was the question. The CFO's response was, quote, the purpose of purchasing the new warehouse in Garland, Texas is to increase our sales capacity. Our sales in the state will definitely increase in a more significant manner. Go ahead and pass that on to him right now.

讓我在這裡稍微跟隨一下。股東的後續問題接著問，是否可以安全地假設在未來兩年達到的新增產能後，收入可能接近 5 億美元，這就是問題所在。財務長的回應是，購買位於德州加蘭的新倉庫的目的是增加我們的銷售能力。我們在該州的銷售額肯定會以更顯著的方式成長。現在就把這個轉告給他吧。

(spoken in foreign language) Go ahead.

（用外語說） 繼續吧。

Okay. He went on to say, this is a quote out of it, our goal of sales target is estimated to be close to $500 million within the next two to three years. He also said, quote, it is estimated that the gross profit margins for the whole year 2023 would be above 30%. If even close to achieving these targets, the CAGR, compound annual growth rate, would be over 80%. Gross profit around $1.75 a share in that year, which I assume, he's talking about is [26%].

好的。他接著說，這是其中的一段話，我們的銷售目標預計在未來兩到三年內將接近5億美元。他也表示，預計2023年全年毛利率將在30%以上。即使接近實現這些目標，CAGR（複合年增長率）也將超過 80%。那年的毛利約為每股 1.75 美元，我認為他所說的是[26%]。

Obviously, with the stock down 40% since the last conference call and 85% below its all-time high, not only is the market not believing management, it's betting on a negative growth over the next few years. This is despite the company announcing a $30 million share buyback right after the last conference call. I have a few questions to follow up, but just say that to them first.

顯然，自上次電話會議以來，該股已下跌 40%，且較歷史高點下跌 85%，市場不僅不相信管理層，還押注未來幾年將出現負成長。儘管該公司在上次電話會議後立即宣布回購 3,000 萬美元的股票。我有幾個問題需要跟進，但請先告訴他們。

(spoken in foreign language) Go ahead.

（用外語說） 繼續吧。

Okay. Do you think maybe the major price decline could have something to do with no press releases in over 4 months and when Kandi in years has put out over 40 a year for the past 10 years? Let's make it two questions.

好的。您認為價格大幅下跌可能與 4 個多月沒有新聞稿發布以及過去 10 年來 Kandi 每年發布超過 40 條新聞稿有關嗎？讓我們提出兩個問題。

Let's do one question first. (spoken in foreign language)

我們先做一個問題。（用外語說）

(interpreted) We have been through the strategic shift in the last two years that caused cost certain -- caused uncertainties, right? That's why we stick with a more conservative approach of the PR effort. As our performance continues to grow and become more steady, we will definitely increase our PR effort.

（解釋）過去兩年我們經歷了策略轉變，這導致了成本確定——導致了不確定性，對吧？這就是為什麼我們堅持採取更保守的公關方式。隨著我們的業績不斷增長並變得更加穩定，我們一定會加強公關。

That's quite obvious with the stock being down that you're not doing any effort to get public relations out, I think that's very bad. Stocks need to be promoted. It's not by management, by analysts or somebody, but let me move on. This management still stand by the target of $500 million in sales and 30% gross margins over the next two to even three years.

在股價下跌的情況下，很明顯你沒有採取任何努力來擺脫公關，我認為這非常糟糕。股票需要促銷。這不是管理層、分析師或其他人所為，但讓我繼續前進。該管理層仍堅持未來兩到三年銷售額 5 億美元、毛利率 30% 的目標。

(spoken in foreign language)

（用外語說）

(interpreted) During the fiscal year 2023, we achieved a turnaround from net loss to net profit. So we are convinced that the sales and profit will continue to increase significantly in the next two to three years.

（解讀）2023財年，我們實現了淨虧損轉淨利。因此我們相信，未來兩三年內銷售額和利潤將繼續大幅成長。

So you're not standing by that 500 number, but that's okay, I guess. Why do you not report non-GAAP numbers as well? If you were to -- about $11 million in non-cash charges for stock-based compensation, that would have added 12 -- at least for analysts to look at, they like looking at that number because it's a one-time item, it's a non-cash charge. And in this particular case, we would have earned $0.12 or $0.13 for the year. If it was any other company, it would report the non-GAAP.

所以你不會堅持那個 500 的數字，但我想那沒關係。為什麼你們不報告非 GAAP 數據呢？如果你要——大約 1100 萬美元的基於股票的薪酬的非現金費用，那就會增加 12——至少對於分析師來說，他們喜歡看這個數字，因為它是一次性項目，它是非現金費用。在這種特殊情況下，我們今年將賺取 0.12 美元或 0.13 美元。如果是任何其他公司，它將報告非公認會計準則。

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

(interpreted) So what we are doing right now is full GAAP disclosure. We stick with complying with the SEC disclosure regulations and requirements. So basically, we would like to present an accurate presentation to investors without too much confusion. And second of all, it's based on the recommendation from our auditors to present GAAP complying figures. We are trying to take a more conservative approach to present the exact correct amount to all the investors and regulators. But what you mentioned, we may take into consideration in the future. Thank you.

（解釋）所以我們現在正在做的是完整的 GAAP 披露。我們堅持遵守 SEC 的揭露法規和要求。所以基本上，我們希望向投資者提供準確的演示，而不會造成太多混亂。其次，它是基於我們審計師的建議來呈現符合 GAAP 的數據。我們正在嘗試採取更保守的方法，向所有投資者和監管機構提供準確的金額。但你提到的，我們將來可能會考慮。謝謝。

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

Am I ready for the last question here?

我準備好回答最後一個問題了嗎？

Yes please.

是的，請。

Okay. Well, first, to comment to that as well. Well, again, that cost us about $0.12 a share in earnings, where any other firm out there would report both sets of numbers. Analysts, particularly in tech-related companies, don't even care about GAAP anymore when they put out their research reports. They look at the non-GAAP because you know that these companies are putting out shares all the time. So they're -- I mean, as far as stock-based compensations, a lot of times, they don't even get exercised.

好的。好吧，首先對此也發表評論。好吧，這又讓我們損失了每股 0.12 美元的收益，而任何其他公司都會報告這兩組數字。分析師，尤其是科技相關公司的分析師，在發布研究報告時甚至不再關心 GAAP。他們關注非公認會計原則，因為你知道這些公司一直在發行股票。所以他們——我的意思是，就基於股票的薪酬而言，很多時候他們甚至沒有被行使。

So again, it cost us about -- we would have had probably $0.14 to $0.15 in non-GAAP income for the year instead of just showing $0.02 and I can promise you, the stock would not be trading at $0.90 under cash or $0.70 under cash in the bank. You have $3 a share in cash in the bank now, on top of everything else has been growing. And I see you also bought back, am I correct? Over 700,000 shares of stock so far since December when you started the share buyback.

因此，我們的成本約為 - 我們今年的非 GAAP 收入可能為 0.14 至 0.15 美元，而不僅僅是 0.02 美元，我可以向你保證，該股票的交易價格不會是現金 0.90 美元或現金 0.70 美元在銀行裡。現在你的銀行裡有每股 3 美元的現金，而且其他一切都在成長。我看到你也買回來了，對嗎？自 12 月開始股票回購以來，迄今已持有超過 70 萬股。

This is the question whether we have bought back 700,000 shares. I think we disclosed all the shares buyback in the K. Is that what you're trying to ask?

這是我們是否回購了70萬股的問題。我想我們在 K 中披露了所有股票回購。這就是你想問的嗎？

Yeah, there are two sets of numbers in it. One was -- I mean, you didn't start buying until probably December because you announced it the last week in November, and that shows about 175,000 shares last year, but you also have a subsequent event in there that shows over 0.5 million more shares were purchased. So my question is, is it -- have we, in fact, repurchased somewhere between 700,000 and 800,000 shares in just the past couple three months?

是的，裡面有兩組數字。其中之一是——我的意思是，你可能直到12 月才開始購買，因為你在11 月的最後一周宣布了這一消息，去年顯示了約175,000 股，但隨後的事件顯示還有超過50萬股股票被買進。所以我的問題是，在過去的三個月裡，我們實際上是否回購了 70 萬至 80 萬股股票？

So your question was that's the number, 700,000 we have purchased, right?

所以你的問題是，這就是我們購買的數字，700,000，對吧？

Right. I mean, that's the number that you have. I just wanted to make sure you have two separate numbers. It does seem to say that in 2023, you purchased around 180,000. And I guess, so far, you've traded -- bought over 0.5 million at an average price of around $2.74.

正確的。我的意思是，這就是你擁有的號碼。我只是想確保您有兩個單獨的號碼。好像確實說2023年你買了18萬左右。我猜，到目前為止，您已經交易了超過 50 萬股，平均價格約為 2.74 美元。

Okay. Let me translate so far. (spoken in foreign language)

好的。到目前為止，讓我翻譯一下。（用外語說）

(interpreted) So as for the amount of shares we have purchased since December until February, the figure we get is correct. It's roughly 700,000 shares we have buyback in last two, three months. Correct.

（解釋）所以從12月份到2月份我們買的股票數量，我們得到的數字是正確的。過去兩三個月我們回購了大約 70 萬股股票。正確的。

That is pretty impressive when you consider the average daily volume has shrink down to about 60,000 to 70,000 shares a day, and you can only buy 25% at any given day of the average daily volume. But what about insights? We used to see insiders buying the stock at $4 or $5 a share in years that they were losing money hand over fist. We haven't seen Mr. Hu or Henry Hu or any other insider buy a share of the stock in 2.5 years. And if you're doing [10B-5S] with the corporation, that should not restrict inside executive buying as well, at least, I'm starting within the window.

考慮到日均成交量已縮減至約 60,000 至 70,000 股，而且您在任何一天只能購買日均成交量的 25%，這真是令人印象深刻。但洞察力又如何呢？我們過去經常看到內部人士以每股 4 或 5 美元的價格購買股票，而這些年他們卻在虧損。我們已經 2.5 年沒有看到胡先生或亨利胡或任何其他內部人士購買該股票的股票了。如果你正在與公司做[10B-5S]，那也不應該限制內部高階主管購買，至少，我是在窗口內開始的。

(spoken in foreign language)

（用外語說）

(interpreted) Well, for management, especially those from PRC because of the restrictions of the foreign currency disbursement. So it takes us more effort to buy the shares. But we definitely, will have such plan and proceed in the future. Thank you.

（解釋）嗯，對於管理層來說，特別是來自中國的管理層，因為外幣支付的限制。所以我們需要付出更多的努力來買股票。但我們將來一定會有這樣的計劃並進行。謝謝。

With the stock trading [$60] simple okay-ish. I can't imagine the time being any better than right now than worrying about the future, unless you just like paying higher for it. But anyway, with all this cash we have, now it's almost $3 a share and it's gone up every quarter, which is amazing this year. Are you going to make an acquisition with that? Are you going to buy a manufacturing facility, maybe in the US or Mexico? Or how about just doing a straight $20 million share buyback at $3 a share. Just don't worry about Dutch auctions or anything else. Tell that, I'm just about done.

股票交易 [60 美元] 簡單還可以。我無法想像現在比擔心未來好，除非你只是喜歡為此付出更高的代價。但無論如何，憑藉我們擁有的所有現金，現在每股價格幾乎為 3 美元，並且每個季度都會上漲，這在今年是令人驚訝的。你打算用它來進行收購嗎？您打算在美國或墨西哥購買製造工廠嗎？或者直接以每股 3 美元的價格進行 2000 萬美元的股票回購怎麼樣？只是不用擔心荷蘭式拍賣或其他任何事情。告訴我，我快完成了。

I'm sorry, can you repeat the last part? You say, if we are going to acquire any facility in US and Mexico and what's after that?

抱歉，您能重複最後一部分嗎？你說，如果我們要在美國和墨西哥收購任何設施，之後會發生什麼事？

Yeah. What I was saying -- no, I was just saying or maybe make an acquisition with this cash, maybe a manufacturing or maybe buy another company or do an actual tender to buy -- I mean, there's no better -- there's no more undervalued stock than your own right now. You're treating a third of book value. You're trading like I said, $0.80 below cash in the bank. Just go out and make a $20 tender for -- I'm sorry, 20 million shared tender for $3 a share. I doubt you'll get anything wanting to meet it, but at least it will wake up the market.

是的。我所說的- 不，我只是說，或者也許用這筆現金進行收購，也許是一家製造業公司，或者可能購買另一家公司，或者進行實際的招標購買- 我的意思是，沒有更好的了- 沒有更多被低估的了股票比你現在自己的多。您正在處理帳面價值的三分之一。你的交易正如我所說，比銀行現金低 0.80 美元。只要出去進行 20 美元的投標——對不起，2000 萬股的共享投標價格為每股 3 美元。我懷疑你會得到任何你想要滿足的東西，但至少它會喚醒市場。

(spoken in foreign language)

（用外語說）

Yeah, we are striving to work on it, including we are considering the plan for any possible acquisitions, or the facilities set up. And as for the share buyback, yeah, we will work on it. Thank you.

是的，我們正在努力解決這個問題，包括我們正在考慮任何可能的收購計劃，或建立設施。至於股票回購，是的，我們會努力解決。謝謝。

That didn't really answer my question, but I anticipate that accelerating. You're talking about maybe buying a facility in this hemisphere. Is that perhaps what he was just saying? Mexico --

這並沒有真正回答我的問題，但我預計這種情況會加速。你正在談論也許在這個半球購買一個設施。他剛才說的或許就是這個吧？墨西哥--

(spoken in foreign language)

（用外語說）

(interpreted) Yeah. As you mentioned, we are really seriously considering such plan. Considering there are some other factors like from the political, the economy, we will definitely take those all into consideration. And if there are further development, we will timely disclose to the public.

（解釋）是的。正如你所提到的，我們正在認真考慮這樣的計畫。考慮到還有其他一些因素，例如政治、經濟等，我們肯定會考慮到這些因素。如果有進一步進展，我們將及時向社會公佈。

That might be a surprise. One last question over here. No, one of the -- so we don't even know who the chains are. I mean all the company has reported in press releases has been that Rural King and Peavey in Canada, we have a total of about 410 locations. Can you go down the list right now and tell us what other Walmart, Amazon just a whole list of who we're doing business with right now?

這可能是個驚喜。最後一個問題在這裡。不，是其中之一——所以我們甚至不知道鎖鏈是誰。我的意思是，該公司在新聞稿中報導的所有內容都是 Rural King 和 Peavey 在加拿大，我們總共有約 410 個地點。現在您能列出清單，告訴我們還有哪些沃爾瑪、亞馬遜以及我們現在正在與之開展業務的公司的完整清單嗎？

I'm sorry, you want us to grow the list of --

抱歉，您希望我們增加名單--

Again, you've only put press releases out on Peavey Mart and Rural King, a total of 410 locations. We know that you're in Walmart. We know you're in maybe that Marcus Lemonis' company, Camping World, and we know you got your own Amazon site. We've never seen any press release. So average person looking at would think that you only got 400 locations, but you got $60 million in inventory. So what other locations do you have within the United States? Or in the area --

同樣，您只在 Peavey Mart 和 Rural King 上發布了新聞稿，總共 410 個地點。我們知道您在沃爾瑪。我們知道您可能在馬庫斯·萊莫尼斯 (Marcus Lemonis) 的公司 Camping World，我們知道您擁有自己的亞馬遜網站。我們從未見過任何新聞稿。因此，普通人會認為您只有 400 個地點，但您的庫存卻高達 6000 萬美元。那麼你們在美國還有哪些地點呢？或在該地區--

(spoken in foreign language)

（用外語說）

(interpreted) Well, I noticed that you would like to know exactly how many the retail stores we have our exposure to. It's hard to confirm because what we can confirm is how many the companies like our company -- megastore company or the retail chains we're working -- we are working with over a dozen of those megastore companies and the mega chain or the retail chains in different scales.

（解釋）嗯，我注意到您想確切地知道我們有多少家零售店。這很難確認，因為我們可以確認的是有多少像我們公司一樣的公司——大型商店公司或我們正在合作的零售連鎖店——我們正在與十幾家這樣的大型商店公司以及大型連鎖店或零售連鎖店合作在不同的尺度上。

But then each company they have a number of the retail stores that not all of them necessarily will sell our products. So I guess it's easier for us to disclose the number of the partners we have working with instead of the retail store number to give a more accurate figures to the public.

但每家公司都有許多零售店，但並非所有零售店都一定會銷售我們的產品。所以我想我們更容易揭露合作夥伴的數量，而不是零售店的數量，以便向大眾提供更準確的數據。

Besides, currently, we are working with over 300 dealerships in the US market. We expect to expand our exposure to over 1,000 of those channels to dealerships in 2024. We expect that the sales will be -- and the volume will continue to improve this year. So that's what we can tell you for the plan of the sales.

此外，目前我們在美國市場與300多家經銷商合作。我們預計到 2024 年將把我們的業務擴展到超過 1,000 個經銷商通路。我們預計今年的銷售量將繼續提高。這就是我們可以告訴您的銷售計劃。

Okay. That pretty much answered my question. But right now, I think I named five, and you said you're working with 12. Maybe they should explain why they don't want to give up the names in press releases. I understand that, I'm not holding against it, but give the shareholders a reason why don't you put the names out.

好的。這幾乎回答了我的問題。但現在，我想我列出了 5 個，而你說你正在與 12 個合作。也許他們應該解釋為什麼他們不想在新聞稿中放棄這些名字。我明白，我並不是反對，而是給股東一個不公開名字的理由。

(spoken in foreign language)

（用外語說）

(interpreted) Well, see, we are working with those different types of the superstores and the retail chains. And apart from the five that you have found out from the public information, the rest actually are doing the cloud sales of our products. That's why it's not 100% like finalized that. We are still working on the terms and the sales plan among both parties. We will disclose more information when it's all finalized.

（解釋）嗯，看，我們正在與不同類型的超市和零售連鎖店合作。而且除了大家從公開資訊中查到的五個之外，其他的其實都是在做我們產品的雲端銷售。這就是為什麼它不是100%最終確定的。我們仍在雙方就條款和銷售計劃進行協商。當一切最終確定後，我們將披露更多資訊。

(interpreted) We would like to add more color there, as you may know, just like what we have been through with Lowe's, the sales form with Lowe's is pretty material, but then they -- we need to have their consent for the public information disclosure. But then many of those stores maybe they declined. So because they are working on their own sales plan.

（解釋）我們想在那裡添加更多色彩，正如您可能知道的那樣，就像我們在 Lowe's 上所做的那樣，Lowe's 的銷售表格非常重要，但是他們 - 我們需要徵得公眾的同意信息披露。但後來很多店家可能都拒絕了。因為他們正在製定自己的銷售計劃。

So there's just a confidential idea, and then that's how that works in the business world. So we have to get the concern before we can give our information even though we want to. We just have to stick with the terms with both parties. We're working on that. We try to release more information in the future and trust us, we're working on that collaboration.

所以只有一個保密的想法，然後這就是商業世界的運作方式。因此，即使我們想提供訊息，我們也必須先得到關注，然後才能提供資訊。我們只需要遵守雙方的條款。我們正在努力解決這個問題。我們嘗試在未來發布更多訊息，相信我們，我們正在努力進行這種合作。

And besides, even though we entered the agreement of our sales with those parties, it will take months for them to finalize and go through the legal and other department before all the information becomes public. So there will be a time lag, so I hope you understand that.

此外，即使我們與這些各方簽訂了銷售協議，他們也需要幾個月的時間才能最終確定並通過法律和其他部門，然後所有資訊才會公開。所以會有時間差，希望大家能理解。

I'm 100% agreement with you. That's what I was hoping you were going to say. We understand -- but the only ones we have, like I said, we had to find out on our own, those do an individual investigation in the past. But if they don't want to say who they are, why can't we do something and just put out on the website, for example. Just put on there the total number of chains -- if you can't name the chains, just put total number of chains or total number of stores that have been increased to a certain level, just something like that.

我100%同意你的觀點。這就是我希望你要說的話。我們理解——但我們擁有的唯一的，就像我說的，我們必須自己找出答案，那些過去進行過單獨的調查。但如果他們不想透露自己是誰，為什麼我們不能做點什麼，例如在網站上發布呢？只要寫上連鎖店的總數——如果你不能說出連鎖店的名字，就寫連鎖店的總數或已經增加到一定水平的商店總數，就這樣。

But anyway, look, I think you're doing a great, great job with Lowe's at all. You're doing a terrible job in getting the stock information out. It's got to be an ultimate embarrassment. You've been trading under cash in the bank and half a book value for two years now. And in the meantime, you added Lowe's and Walmart and Marcus Lemonis' company. I mean, these are big companies.

但無論如何，我認為你在 Lowe's 的工作做得非常非常出色。你在獲取股票資訊方面做得很糟糕。這一定是一種終極的尷尬。兩年來，您一直以銀行現金和帳面價值的一半進行交易。同時，您添加了 Lowe's 和 Walmart 以及 Marcus Lemonis 的公司。我的意思是，這些都是大公司。

And somehow, if you just put up -- that you passed 20,000 vehicles made or 30,000 vehicles made. It just or just generically, if you put out and say we're now up to 12 chains. You don't even have to name them. Something like that. Just stay in touch with the public. We haven't had a press release since November, okay? And no new product one.

不知何故，如果你只是提出——你就超過了 20,000 輛製造的汽車或 30,000 輛製造的汽車。如果你說我們現在有 12 條連鎖店的話，這只是一般情況。你甚至不必說出他們的名字。類似的事情。只需與公眾保持聯繫即可。自從十一月以來我們就沒有發布過新聞稿，好嗎？並且沒有新產品。

I mean, Johnny tied this his own press releases, for Kandi America, but they're dedicated to the trade journals. They don't necessarily show up on the Wall Street tickers.

我的意思是，約翰尼將其與 Kandi America 的新聞稿聯繫起來，但它們專門針對貿易期刊。它們不一定出現在華爾街的股票行情上。

Okay. I'm done. Thank you very much.

好的。我受夠了。非常感謝。

Thank you. (spoken in foreign language)

謝謝。（用外語說）

(spoken in foreign language)

（用外語說）

Operator, we will take the next question. I'm sorry. Sorry. Go ahead.

接線員，我們進行下一個問題。對不起。對不起。前進。

I would just say again, thank you for your opinion. Thank you for your support with everything that comes up. In consideration, we will strengthen our PR efforts. Thank you.

我只想再說一遍，謝謝你的意見。感謝您對發生的一切的支持。考慮到這一點，我們將加強公關工作。謝謝。

[Frank Balaraman], Private Investor.

[弗蘭克·巴拉拉曼]，私人投資者。

Well, yeah, good evening to those of you in China. I have two quick questions. Is a Dutch auction still under active consideration? I didn't quite understand the answer that was given to Art. My second question -- take care of the first one.

嗯，是的，中國的各位晚上好。我有兩個簡單的問題。是否仍在積極考慮荷蘭式拍賣？我不太明白藝術的答案。我的第二個問題——解決第一個問題。

(spoken in foreign language)

（用外語說）

(interpreted) Currently, we did not adopt the Dutch auction for the shares buyback. However, the company is undergoing the share buyback process. For more detailed information, please refer to our 10-K disclosure. Thank you.

（解讀）目前，本次股票回購未採用荷蘭式拍賣方式。不過，該公司正在進行股票回購程序。如需了解更多詳細信息，請參閱我們的 10-K 披露。謝謝。

Okay, thank you. And my second question, I, along with many of the long-time shareholders, invested in the company due to the electric car business. Do you have any plans to reintroduce the electric cars, perhaps with quick battery exchange in the future?

好的謝謝。我的第二個問題，我和許多長期股東一起投資該公司是因為電動車業務。您是否有計劃重新推出電動車，也許將來可以快速更換電池？

(spoken in foreign language)

（用外語說）

(interpreted) Currently, because of the market in China being too competitive, is unhealthy for the EV industry. That's why we shift our focus to the electric off-road vehicle series for a better return in terms of the -- from the financial perspective. But definitely, like in the EV products, the battery charging, we are working on it at the current, and we'll see and assess the market when the time is right, we will end in a more active approach. Thank you.

（解讀）目前，由於中國市場競爭過於激烈，對電動車產業來說是不健康的。這就是為什麼我們將重點轉向電動越野車系列，以獲得更好的回報——從財務角度來看。但可以肯定的是，就像在電動車產品中一樣，電池充電，我們目前正在研究它，我們將在適當的時候觀察和評估市場，我們將採取更積極的方法。謝謝。

Steve Miller, Private Investor.

史蒂夫·米勒，私人投資者。

Thanks. For almost two years now, I've been tracking on a daily basis, seven days a week using US import data, Kandi shipping container imports coming into US ports and compiling various cargo information from the accompanying bills of lading, I received the data within 24 hours of port arrival. So I've got some questions relating to your imports so I can gain a greater understanding. Kewa, can you go ahead and translate that?

謝謝。近兩年來，我一直在每天、每週 7 天使用美國進口數據跟踪進入美國港口的 Kandi 海運集裝箱進口，並從隨附的提單中彙編各種貨物信息，我收到的數據在24小時到達港口。因此，我有一些與你們的進口相關的問題，以便我可以更好地了解。Kewa，你能幫我翻譯一下嗎？

(spoken in foreign language) Go ahead.

（用外語說） 繼續吧。

Great. Thank you. Whether those containers arrive at the ports of Houston, Los Angeles, or Long Beach, SC Autosports is listed as the recipient on the bills of lading. Do you ship any product to the United States from China that does not bear SC Autosports name on the of bills lading, that is, is any product sent directly to a US or Canadian customer from China? Regarding the latter, if so, are those contents fully or partially assembled?

偉大的。謝謝。無論這些貨櫃抵達休士頓、洛杉磯或長灘港口，SC Autosports 都會被列為提單上的收件者。你們是否從中國向美國運送提單上未註明 SC Autosports 名稱的任何產品，即是否有任何產品直接從中國運送給美國或加拿大客戶？對於後者，如果是的話，這些內容是全部還是部分組裝的？

I'm sorry, can you repeat? My understanding as you said, you have seen, we shipped a container to Houston, Los Angeles, and the Texas, and what's the second part?

抱歉，您能再說一次嗎？我的理解就像你說的，你也看到了，我們把一個貨櫃運到了休士頓、洛杉磯、德州，第二部分是什麼？

Okay. My question is all the containers that arrive at any of those ports are shipped to SC Autosports without regard to whether it's Houston, LA, or Long Beach. I want to know, does Kandi ship any containers directly to a US or Canadian customer outside of SC Autosports directly? And if so, are those contents in those containers fully or partially assembled? That's my question.

好的。我的問題是，到達這些港口的所有貨櫃都會運往 SC Autosports，無論是休士頓、洛杉磯還是長灘。我想知道，Kandi 是否直接向 SC Autosports 以外的美國或加拿大客戶直接運送任何貨櫃？如果是，這些容器中的內容物是否已完全或部分組裝？這就是我的問題。

Okay. (spoken in foreign language)

好的。（用外語說）

(interpreted) So there's no direct delivery from our China base to those end customers. We have two sample points in US. One is the primary point in our Dallas base where our SC Autosports subsidiary is located. There's another sample point in Los Angeles. So once the products assemble, we will then ship the end products to the dealerships for them to deliver to the customers.

（解釋）因此，我們的中國基地並沒有直接向這些最終客戶出貨。我們在美國有兩個樣本點。其中一個是我們達拉斯基地的主要地點，我們的 SC Autosports 子公司就位於此。洛杉磯還有另一個樣本點。因此，一旦產品組裝完畢，我們就會將最終產品運送到經銷商，以便他們交付給客戶。

Okay. So you have some kind of receiving or distribution facility in LA, but not in Long Beach. So when containers arrive there, are those all sent to your Dallas facility before arriving at your customer's location or they ship directly to a customer location, for example, from the LA port?

好的。因此，您在洛杉磯有某種接收或分發設施，但在長灘沒有。那麼，當貨櫃到達那裡時，它們是在到達客戶所在地之前全部發送到您的達拉斯工廠，還是直接從洛杉磯港口運送到客戶所在地？

(spoken in foreign language) I'm sorry, can you repeat one more time?

（用外語說）對不起，你能再說一次嗎？

Right. Alan said that you have some kind of a receiving distribution facility at the Los Angeles port, apparently not at Long Beach or in Houston.

正確的。艾倫說，洛杉磯港口有某種接收配送設施，顯然長灘或休士頓沒有。

Wait. I think at the Long Beach -- hold on. (spoken in foreign language)

等待。我想在長灘——等等。（用外語說）

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

(spoken in foreign language) I think there was a confusion. I think what the Chairman meant in California, Los Angeles, he meant Long Beach. He just doesn't know the exact city name.

（用外語發言）我認為這是一個混亂。我認為主席所說的加州、洛杉磯，他指的是長灘。他只是不知道確切的城市名稱。

Okay. So let me see if I can understand this. So if containers arrive in Long Beach, those are not -- those are not sent either by rail or by truck to Texas. Those are sent directly to customer locations. (multiple speakers)

好的。那麼讓我看看我是否能理解這一點。因此，如果貨櫃到達長灘，那麼這些貨櫃就不會透過鐵路或卡車運往德州。這些被直接發送到客戶所在地。（多個發言者）

(spoken in foreign language)

（用外語說）

(interpreted) So for those products that we -- those products we receive and that we assemble in Los Angeles County, we will then ship to the West Coast region.

（解釋）因此，對於我們收到並在洛杉磯縣組裝的那些產品，我們將運送到西海岸地區。

Okay. And then in the -- then is that -- from that's Long Beach? And then for Los Angeles, are all those containers then trucked or sent by rail to Texas?

好的。然後在——那麼就是——來自長灘？那麼對於洛杉磯來說，所有這些貨櫃都是用卡車或鐵路運送到德克薩斯州嗎？

No, they don't. They don't. They just directly -- once they have been assembled in Long Beach, they will just directly shift to the customers.

不，他們沒有。他們不這樣做。他們只是直接——一旦在長灘組裝，他們就會直接轉移給客戶。

So whether the containers arrive in Long Beach or Los Angeles, those are dealt with in here facility there. They're sent directly to the customer. Is that correct?

因此，無論貨櫃到達長灘還是洛杉磯，這些貨櫃都會在當地的設施中處理。它們被直接發送給客戶。那是對的嗎？

So basically, we only have one -- just to clarify, we only have one location in California, which is Long Beach. So there is one in Long Beach, the other one in Los Angeles.

所以基本上，我們只有一個——澄清一下，我們在加州只有一個地點，那就是長灘。因此，長灘有一個，洛杉磯有一個。

Is that facility in California, did we know about that? Have you ever announced it? Or what kind of a facility is it?

該設施位於加利福尼亞州嗎？我們知道嗎？你曾經宣布過嗎？或者說它是什麼樣的設施？

(spoken in foreign language)

（用外語說）

(interpreted) You mentioned that we didn't disclose such facility in Los Angeles because it's not owned by our company. It's one of the partners we are working with in that region, then we pay them to do the sampling of our products, then they will ship those products to the end customers or the dealerships in that region.

（解釋）你提到我們沒有披露洛杉磯的此類設施，因為它不屬於我們公司所有。它是我們在該地區合作的合作夥伴之一，然後我們付錢給他們對我們的產品進行抽樣，然後他們將這些產品運送到該地區的最終客戶或經銷商。

Got it. How does your product get to Canadian customer locations? Do you use any Canadian shipping ports? And if so, do you have any kind of a distribution facility at those ports?

知道了。您的產品如何到達加拿大客戶所在地？你們使用加拿大的任何運輸港口嗎？如果是這樣，你們在這些港口有任何類型的分銷設施嗎？

(spoken in foreign language)

（用外語說）

(interpreted) So currently, those products selling in Canada are shipped from our US subsidiary. Ongoing, we plan to add another point of the assembly over there in Canada. Yeah. But then it will be in a similar process what we do in Los Angeles that we will work with those local partnerships for the assembly and then shipping to those customers in the region.

（解釋）所以目前在加拿大銷售的產品都是從我們美國子公司出貨的。目前，我們計劃在加拿大增加另一個集會點。是的。但隨後我們將採用與洛杉磯相似的流程，與當地合作夥伴合作組裝，然後運送給該地區的客戶。

Understood. And then which of your products in the containers arrive fully assembled and which require assembly? And are there any tariff or tax considerations involved in that decision?

明白了。那麼貨櫃中的哪些產品到達時已完全組裝好，哪些需要組裝？該決定是否涉及任何關稅或稅收考慮？

(spoken in foreign language)

（用外語說）

(interpreted) So essentially, we are paying the tax based on the category of those products pursuing the US tax regulation.

（解釋）所以本質上，我們是根據美國稅收監管的產品類別來納稅。

So is there an advantage for them to be unassembled versus assembled or does that make a difference in what you pay?

那麼，與組裝相比，未組裝的產品有優勢嗎？或者這會對您支付的費用產生影響嗎？

They're the same. We're also adding the reason we assemble here because this way each container can have more shipments versus if you ship the whole car here.

他們是一樣的。我們還添加了在這裡組裝的原因，因為與將整輛車運送到這裡相比，這樣每個集裝箱可以裝更多的貨物。

Understood. Okay, so then according to the numbers for North America from the US import data, at least according to what I track, you shipped 4,474 golf cart containers in the first quarter of 2023. But as of two days ago, March 13, this quarter, you've only shipped 2,036 golf cart containers. Why has the number of golf cart containers shipped to North America dropped this quarter so far? Is that due to product going instead to resellers in China for worldwide sales and or to distributors that you now set up like for example in the UK? Or has demand simply fallen off? Or is the current buildup inventory adequate?

明白了。好的，那麼根據美國進口數據中的北美數據，至少根據我追蹤的數據，你們在 2023 年第一季度運送了 4,474 個高爾夫球車貨櫃。但截至兩天前，即 3 月 13 日，本季您僅運送了 2,036 個高爾夫球車貨櫃。為什麼本季運往北美的高爾夫球車貨櫃數量迄今有所下降？這是因為產品轉而流向中國的經銷商進行全球銷售，或是流向您現在在英國設立的經銷商嗎？還是需求只是下降了？或目前累積的庫存是否充足？

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

(interpreted) We are adopting a different sales approach in last year and this year that's why there's some variance of the sales volume.

（解釋）去年和今年我們採用了不同的銷售方式，所以銷售上會有一些差異。

Okay. Do you want to explain that any bit more so we can understand that?

好的。您想再解釋一下以便我們能夠理解嗎？

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

What exactly do you not understand that you like Chairman to explain?

您到底有什麼不懂的地方請主席解釋？

Well, the number of golf cart containers during this first quarter appears to have basically been slushed in half. So I was just curious to know or try to get a better understanding of the reason for that. Whether it was related to demand, adequate inventory, or if the product is going not to the US but to resellers or distributors that you've set up in other places. (technical difficulty)

嗯，第一季高爾夫球車貨櫃的數量似乎基本上減少了一半。所以我只是想知道或試圖更好地理解原因。是否與需求、充足的庫存有關，或產品是否不銷往美國，而是銷往您在其他地方設立的經銷商或經銷商。（技術難度）

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

Okay, let me try to explain. I think Alan got cut off the line. So Chairman is trying to say, so last year in 2023, all the golf carts in the US, we have to go through Coleman, if you remember, as a median, in order to sell to those Lowe's stores. But however, this year, we directly deal with Lowe's, with other buyers.

好吧，讓我試著解釋一下。我想艾倫被掛斷了。所以主席想說，去年 2023 年，美國所有的高爾夫球車，如果你還記得的話，作為中位數，我們必須經過 Coleman，才能賣給那些 Lowe's 商店。但今年，我們直接與 Lowe's 以及其他買家打交道。

So we only ship the amount of products they need. So this way we don't have to ship more than what they need. But last year, Coleman required us to ship more so they can have enough inventory for them to market to those companies for sale.

所以我們只運送他們需要的產品數量。這樣我們就不必運送超出他們需要的東西。但去年，科爾曼要求我們運送更多貨物，以便他們有足夠的庫存，以便向這些公司推銷。

Okay, understood. And then I guess related to that, the value -- I've noticed that the value of what SC Autosports has in stock at the end of each quarter has increased rather dramatically from $4.5 million at the end of the first quarter in 2022 to $22.8 million at the end of the first quarter in 2023, then up to $50.5 million at the end of the quarter four in 2023.

好的，明白了。然後我想與此相關的是價值 - 我注意到 SC Autosports 在每個季度末的庫存價值已從 2022 年第一季末的 450 萬美元大幅增加到 22.8 美元到2023 年第一季末達到5050 萬美元，然後到2023 年第四季末達到5,050 萬美元。

My question is, is all of this inventory actually sitting at SC Autosports, or is it located at large customers like Lowe's as an example, but not yet invoiced so that the sales have not yet been booked? Or can you explain how that works?

我的問題是，所有這些庫存是否實際上都在 SC Autosports，還是位於像 Lowe's 這樣的大客戶處，但尚未開立發票，因此尚未預訂銷售？或者你能解釋一下它是如何運作的嗎？

Okay, I got a question, but can you just tell me the numbers one more time so I can -- I'm writing down so I can accurately --

好的，我有一個問題，但是你能再告訴我一次數字嗎？這樣我就可以——我寫下來，這樣我就可以準確地--

Okay. No problem. At the end of quarter one in 2022, SC Autosports had inventory of $4.5 million. In the end of the quarter one in 2023, it went up to $22.8 million. And at the end of the fourth quarter just last year --

好的。沒問題。截至 2022 年第一季末，SC Autosports 的庫存為 450 萬美元。2023 年第一季末，這一數字增至 2,280 萬美元。就在去年第四季末--

Wait. I'm sorry. End of Q1 2023 went up to what?

等待。對不起。2023 年第一季末的情況是怎麼樣的？

End of the fourth quarter in 2023, it went up to $50.5 million.

2023 年第四季末，這一數字增至 5,050 萬美元。

$50.5 million. Okay.

50.5 美元百萬。好的。

So I'm just trying to figure out, is this inventory sitting at SC Autosports? Or --

所以我只是想弄清楚，這個庫存是在 SC Autosports 嗎？或者--

Okay. Got it, got it. Okay. I got it. (spoken in foreign language)

好的。明白了，明白了。好的。我得到了它。（用外語說）

(interpreted) So I guess the increase was based on the sales plan of partners like Lowe's. So we will have more inventory in US under our facilities like SC, just to get ready to meet the sales plan of our partners.

（解釋）所以我猜成長是基於Lowe's等合作夥伴的銷售計劃。因此，我們將在美國的 SC 等工廠擁有更多庫存，為滿足合作夥伴的銷售計劃做好準備。

(interpreted) And as we mentioned earlier, right, we have expanded our collaboration of the -- over tens of those, the retail chains and then the superstore companies, plus we are expanding our channels to those dealerships. So that's why we have to get ready and have more inventory in place to be prepared for the upcoming sales transaction and activities.

（解釋）正如我們之前提到的，我們已經擴大了與數十家零售連鎖店和超市公司的合作，我們正在將我們的管道擴展到這些經銷商。因此，我們必須做好準備並準備更多庫存，為即將到來的銷售交易和活動做好準備。

Okay. And then we've heard unofficially about Kandi distributorships for off-road sales outside of the US and China, like in the UK and in the EU. Can you describe what your business plan is for utilizing distributorships for off-road sales outside of China and the US? What distributorships currently exist and what's your projected timetable for expansion of those?

好的。然後我們非正式地聽說康迪在美國和中國以外的越野銷售經銷權，例如在英國和歐盟。您能描述一下您利用經銷權在中國和美國以外進行越野銷售的商業計劃嗎？目前有哪些經銷權？您預計擴大這些經銷權的時間表是什麼？

(interpreted) So we are going to -- those are the foreign trading companies located in China to have ourselves shipped to those areas like the UK, the EU and some other Southern Asia areas as well. And volume right now is not so large at the moment. So yeah, that's what happened right now.

（解釋）所以我們將會－那些位於中國的外貿公司將我們的貨物運往英國、歐盟和其他一些南亞地區等地區。而且目前的成交量還沒有那麼大。是的，這就是現在發生的事情。

And can you give us any color of what's in your backyard in China for off-road EV sales?

能為我們介紹一下您在中國後院的越野電動車銷售情況嗎？

(spoken in foreign language)

（用外語說）

(interpreted) The amount is not that material. There are some distributors and some other wholesaler to get our samples for the test sales. But then the amount, as I mentioned, is not the material.

（解釋）金額並不重要。有一些經銷商和其他批發商來獲取我們的樣品進行測試銷售。但正如我所提到的，數量並不是材料。

Okay. And then the political change -- there may be a political change in the US that might significantly increase tariffs on manufactured goods from China. Are you very concerned about that, somewhat concerned or not concerned at all? And might that propel you to fall through with the press release that you issued a number of years ago about possibly establishing a manufacturing facility, if not or close to the Texas facility, perhaps in Mexico?

好的。然後是政治變化——美國可能會發生政治變化，可能會大幅提高對中國製成品的關稅。您對此是非常關心、有些關心還是根本不關心？這是否會促使您放棄多年前發布的關於可能建立製造工廠的新聞稿，如果不是或靠近德克薩斯工廠，也許在墨西哥？

Did you say the political will impact our what?

你說政治意願影響我們什麼？

Well, there's a possible political change here in the United States. And there's a chance that that might have a result of increasing tariffs on manufactured goods received from China. And I just wondered how concerned you guys might be and how much that might motivate you to establish a manufacturing facility either in Texas or in Mexico following up Mr. Hu's press release that he put out a number of years ago about wanting to do something like that.

嗯，美國可能會發生政治變革。這有可能是由於對來自中國的製成品徵收關稅造成的。我只是想知道你們可能有多擔心，以及這可能會在多大程度上促使你們在胡先生幾年前發布的新聞稿中在德克薩斯州或墨西哥建立製造工廠，他希望做一些類似的事情那。

Okay. Got it. (spoken in foreign language)

好的。知道了。（用外語說）

(interpreted) Yeah, so we are considering those factors and thinking of the plan for the facility establishment in Northern America. We are thinking about it, and we have such thought, and we'll disclose more information before the development.

（解釋）是的，所以我們正在考慮這些因素並考慮在北美建立設施的計劃。我們正在考慮，也有這樣的想法，在開發之前我們會透露更多的資訊。

All right. And then just one follow up from something that Art kept asking about, and this is sort of a crazy question, but I'll ask it anyway. Those 540,362 shares that you repurchased using your buyback in January and February of this year, was that done in the open market, or was that part of a private transaction?

好的。然後是 Art 一直在問的問題的一個後續，這是一個有點瘋狂的問題，但無論如何我都會問。您在今年一月和二月回購的 540,362 股股票是在公開市場上進行的，還是私人交易的一部分？

(spoken in foreign language)

（用外語說）

(interpreted) So yeah, we are -- through our broker, we do the shares buyback from the open market compliant with the SEC regulations.

（解釋）所以，是的，我們透過我們的經紀人，按照美國證券交易委員會的規定從公開市場回購股票。

Okay. That's all my questions, and I will just echo what Art was trying to get across to you and it doesn't seem to be getting through to anybody there. You guys went public back in 2007, where the stock sitting now and what you've been managed to accomplish, clap, clap, is not being reflected in the share price. And from anyone's third-party view, it doesn't appear that, first, you're very concerned about it. And second, that you're doing anything about it.

好的。這就是我所有的問題，我只是重複藝術試圖向你傳達的訊息，但似乎沒有傳達給那裡的任何人。你們在 2007 年上市，現在的股票和你們所取得的成就，鼓掌，鼓掌，並沒有反映在股價上。從任何第三方的角度來看，首先，您似乎並不對此非常關心。其次，你正在為此做任何事。

[Blue shirt], you seem to have their hands tied behind their back. You're not letting them loose to go out and try to generate institutional interest. All they seem to be doing is reviewing drafts of your press releases and chiming on comments on your monthly meetings, but not utilizing the resources that they have to promote companies stock.

[藍衫]，你好像把他們的手反綁在背後了。你不會讓他們自由地出去並試圖引起機構的興趣。他們似乎所做的只是審查你的新聞稿草稿，並在你的每月會議上發表評論，但沒有利用他們擁有的資源來推銷公司股票。

I just don't -- most of us are just puzzled why you don't seem to be more concerned about it and using amorphous, ambiguous, and arbitrary language, saying that you're working on it and you know you're concerned. It just gets old hearing it year after year. Shareholders are very frustrated.

我只是不知道——我們大多數人只是感到困惑，為什麼你似乎不更關心它，並使用無定形、模棱兩可和武斷的語言，說你正在研究它，你知道你很關心。年復一年地聽它就會變老。股東們非常沮喪。

Anyway, thank you very much for your responses. I appreciate it.

無論如何，非常感謝您的回覆。我很感激。

Thank you. (spoken in foreign language)

謝謝。（用外語說）

Walter Hill, Carty & Company.

沃爾特·希爾，卡蒂公司。

On the last conference call, it was explained with no press releases mentioning Lowe's superstores as the first big box Kandi retailer with 2,500 locations. This was done in deference to letting Lowe's make the first promotion move. Subsequently, the [attack] was taken again in August with Walmart coming aboard with 4,500 stores.

在上次電話會議上，沒有任何新聞稿提及 Lowe's 超市是第一家擁有 2,500 家門市的大型 Kandi 零售商。這樣做是為了尊重勞氏公司的首次促銷措施。隨後，8 月份，沃爾瑪再次發動攻擊，旗下 4,500 家門市也加入其中。

Next the Amazon store. Early January, with no PR, it was discovered that all Kandi products are now in Marcus Lemonis' Camping World stores, which is a public company. However, in November, 2 smaller chains Rural King with 140 stores, Peavey Mart in Canada with 270 stores were given Kandi PRs. Peavey also holds a Canadian license to Tractor Supply and ACE Hardware.

接下來是亞馬遜商店。一月初，在沒有公關的情況下，人們發現所有 Kandi 產品現在都在 Marcus Lemonis 的 Camping World 商店中，該商店是一家上市公司。然而，11 月份，擁有 140 家商店的 2 家規模較小的連鎖店 Rural King 和擁有 270 家商店的加拿大 Peavey Mart 獲得了 Kandi PR。Peavey 還擁有 Tractor Supply 和 ACE Hardware 的加拿大授權。

So based on published information, both PR and SEC filings, if an average Kandi shareholder relies on press releases and SEC filings for stock updates, might assume that Kandi's total outlets are less than 1,000, even when adding independent dealers. This is despite the actual outlet count, be over 8,000 when adding in unannounced Lowe's, Walmart, and Camping World.

因此，根據公開資訊、PR 和 SEC 文件，如果 Kandi 的普通股東依賴新聞稿和 SEC 文件來獲取股票更新，可能會認為 Kandi 的門市總數不到 1,000 家，即使添加了獨立經銷商也是如此。儘管實際門市數量已超過 8,000 家，但加上未公佈的 Lowe's、沃爾瑪和 Camping World 等門市。

Where this lack of knowledge becomes a problem is when looking at Kandi's $47 million in inventory at the end of Q3. This much inventory might be a red flag if there were only reported 1,000 locations, but a very well-timed smart position with 8,000-plus locations. Now my question is, if new account --

當查看 Kandi 第三季末 4700 萬美元的庫存時，這種知識的缺乏就成為了一個問題。如果只報告了 1,000 個地點，那麼如此多的庫存可能是一個危險信號，但如果有 8,000 多個地點，那麼這是一個非常及時的智慧定位。現在我的問題是，如果新帳戶--

I'm sorry. Here, let me translate what you have so far. (spoken in foreign language)

對不起。在這裡，讓我翻譯一下您目前所掌握的內容。（用外語說）

If new accounts or products are added, Kandi should announce milestones without being specific, such as each time a chain is added, starting out with PR with the total number of outlets also keeping a tally on Kandi America website. If an investor needs to know specifics, all he'd have to do is search big box ecommerce sites.

如果新增帳戶或產品，Kandi 應該宣布里程碑，但不具體，例如每次新增連鎖店時，請從 PR 開始，同時在 Kandi America 網站上記錄門市總數。如果投資者需要了解具體情況，他所要做的就是搜尋大型電子商務網站。

Here, let me -- let's go once -- yeah, one question first. (spoken in foreign language)

在這裡，讓我——我們來一次——是的，先問一個問題。（用外語說）

(interpreted) Thank you for your suggestions. That's a very good opinion. We will make corresponding adjustments after communicating with and confirming with our partners. Thank you.

（已翻譯）謝謝您的建議。這是一個非常好的意見。我們將在與合作夥伴溝通確認後做出相應的調整。謝謝。

All right. Another part and possibly similarly replicate, update continued Kandi's November 2022 PR where it said Kandi Technologies produces 10,000 crossover electric golf carts. You should put out each time there's maybe another 10,000. Put out a new PR showing that they've passed another 10,000 units.

好的。另一部分可能是類似的複製，更新延續了 Kandi 2022 年 11 月的公關，其中稱 Kandi Technologies 生產 10,000 輛跨界電動高爾夫球車。每次可能還有 10,000 個時，你就應該把它拿出來。發布了一個新的 PR，表明他們已經又突破了 10,000 個單位。

(spoken in foreign language)

（用外語說）

(interpreted) Thanks again for the suggestion. That's a great idea. In the past two years, we have been through the strategic shift with cost uncertainties. That's why we are relatively conservative in terms of the public release. The press release approach ongoing. We will strengthen our effort in the PR and make more promotions of our products and development. Thank you.

（已翻譯）再次感謝您的建議。好主意啊。過去兩年，我們經歷了成本不確定性的策略轉變。這就是為什麼我們在公開發布方面相對保守。新聞發布方式正在進行中。我們將加強公關力度，並加大產品和研發的宣傳力道。謝謝。

The other question I was going to ask has already been answered whether you're going to add any new superstore outlets this year. So you all already answered that question. So that's all of my questions.

我要問的另一個問題已經得到解答，你們今年是否要增加任何新的超市門市。所以你們都已經回答了這個問題。這就是我的所有問題。

You still want to ask how many new super --

你還想問有多少新超--

Yeah, I just was going to find out how many -- if they were going to add any superstore outlets this year and if so, how many outlets would there be?

是的，我只是想知道有多少——如果他們今年要增加任何超市門市，如果是的話，會有多少家店？

Okay. (spoken in foreign language)

好的。（用外語說）

(interpreted) So based on the foundation working with Lowe's superstores, we have now added more cooperation with more than 10 superstores outlet with different scales. Besides, we are expanding our cooperation with the dealerships from 300 in the past to more than 1,000 in 2024.

（解讀）所以在與Lowe's超市合作的基礎上，我們現在又增加了與10多家不同規模的超市門市的合作。此外，我們正在將與經銷商的合作從過去的300家擴大到2024年的1000家以上。

Mark Neville, Private Investor.

馬克·內維爾，私人投資者。

Good morning and good afternoon and hello. First, I have to make some comments and then my question. On the prior conference call, a question was asked from the filing about the company's retention of a business growth and financial advisory service consultant. CFO simply responded, indeed it is for our separate plan to our US subsidiary, SC Autosports, to explore the possibility of being separately listed on the US main board. Nothing further was discussed on the subject since it was the last question's answer.

早安，下午好，你好。首先，我必須發表一些評論，然後提出我的問題。在先前的電話會議上，文件中提出了有關公司保留業務成長和財務諮詢服務顧問的問題。CFO簡單回應，確實是為了我們的美國子公司SC Autosports單獨計劃，探討在美國主機板單獨上市的可能性。由於這是最後一個問題的答案，因此沒有進一步討論該主題。

If I understand this correctly, it appears the Board of Directors are considering splitting off the US subsidiary, Kandi America, into a separate US Nasdaq company. This makes a lot of sense in the releasing of the true value of Kandi as a separate manufacturer, being able to book its sales and spin off, also being able to book its own P&L particularly since Kandi at its current price is not being given any value for all of its business entities above its cash values.

如果我理解正確的話，董事會似乎正在考慮將美國子公司 Kandi America 分拆為一家單獨的美國納斯達克公司。這對於釋放 Kandi 作為獨立製造商的真實價值非常有意義，能夠記錄其銷售和分拆，也能夠記錄自己的損益，特別是因為 Kandi 目前的價格沒有得到任何回報。其所有業務實體的價值均高於其現金價值。

Kewa, can you translate this one and then I --

Kewa，你能翻譯一下這個嗎，然後我--

Okay. Thank you. (spoken in foreign language) Go ahead with your first question.

好的。謝謝。（用外語發言）繼續你的第一個問題。

Can the CFO give us some more color as to what the Board is thinking and what is the end goal?

財務長能否讓我們更了解董事會的想法以及最終目標是什麼？

(spoken in foreign language)

（用外語說）

(interpreted) So regarding the IPO process of our US subsidiary, SC Autosports, the company is still considering of this matter. And as for further development, we will provide disclosure timely in accordance with the relevant regulations of the SEC.

（解讀）所以關於我們美國子公司SC Autosports的IPO進程，公司還在考慮這個事情。對於後續的發展，我們將根據SEC的相關規定及時揭露。

Okay. Understood. Also, since Kandi China makes in house 85% to 90% of all parts that go into its own vehicles, it can double dip. So how would the revenues be booked should Kandi spin off its US subsidiary?

好的。明白了。此外，由於康迪中國自己生產的汽車零件中 85% 到 90% 都是自己生產的，因此它的股價可能會雙跌。那麼，如果康迪剝離其美國子公司，收入將如何入帳呢？

(spoken in foreign language)

（用外語說）

(interpreted) So first of all, for all the intercompany transactions occurring in the company, we will not have any double dip or any recognition of the revenue or related amount. Based on the proper accounting treatment, we will eliminate all those related balances to make sure no double or duplicate reconnections of the revenue.

（解釋）所以首先，對於公司內發生的所有公司間交易，我們不會出現任何雙底或任何收入或相關金額的確認。基於正確的會計處理，我們將消除所有相關餘額，以確保收入不會出現雙重或重複的重新連接。

And besides, if SC Autosports will be separately listed, it's very likely Kandi, our group, will still be the controlling shareholder of the SC Autosports and the related parties and ended such group. So we will continue to consolidate the financial statements of SC into our group consolidated financial statements. I hope that can resolve your question.

另外，如果SC Autosports單獨上市，我們集團Kandi很可能仍是SC Autosports及其關聯方的控股股東，從而終止該集團。因此，我們將繼續將SC的財務報表合併到我們集團的合併財務報表中。我希望這能解決你的問題。

Yeah, that solves my question. And very good. And the last question is, in the past there were also talks about the China subsidiary that produces lithium batteries and power trains to be spun off separately. Is there anything happening here? Or is this off the table?

是的，這解決了我的問題。而且非常好。最後一個問題是，過去也有關於將生產鋰電池和動力總成的中國子公司分開的討論。這裡有什麼事情發生嗎？還是這已經不在討論範圍內了？

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

(interpreted) So currently, we are having the strategic shift of those battery recharge industry and related business. So I guess once we will have it all settled, we will go from there and discuss more upcoming development information. Thank you.

（解讀）所以目前我們正在對電池充電產業及相關業務進行策略轉移。所以我想一旦我們把這一切都解決了，我們就會從那裡開始討論更多即將到來的開發資訊。謝謝。

Thank you. We've come to the end of our time allowed for questions. I'll turn the floor back to management for any final comments.

謝謝。我們的提問時間已經結束。我將把最後的意見轉回給管理階層。

Thank you again for joining today's conference call. If you have any further questions, please don't hesitate to contact our IR consultant gary@blueshirtgroup.co or you can contact us at ir@kandigroup.com. We look forward to updating you on our next earnings call. This concludes our call for today. Thank you very much. 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，請隨時聯絡我們的 IR 顧問 gary@blueshirtgroup.co 或透過 ir@kandigroup.com 與我們聯絡。我們期待在下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。非常感謝。你們現在可以斷開連結了。

Editor^ Portions of this transcript that are marked (interpreted) were spoken by a company representative present on the live call.

編輯^ 本記錄中標記（解釋）的部分是由現場電話會議中的公司代表發言的。