Greetings, and welcome to Kandi Technologies Second Quarter 2022 Financial Results Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and then zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to the IR Manager, Kewa Luo. Please go ahead. Thank you. Hello, everyone. Thank you for joining us today to discuss Kandi's results for the Second Quarter of 2022. Earlier today, we issued our 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. Hu Xiaoming, Chief Executive Officer, and Mr. Alan Lim, Chief Financial Officer. Mr. Hu 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. 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 today are in U.S. dollars. With that, let me now turn the call over to our CEO, Hu Xiaoming. Go ahead, Mr. Hu. Hi. Thank you, Kewa. Hello, everyone, and welcome to Kandi's earnings conference call today. I'm proud of outstanding effort made by our team to deliver solid results despite many challenges in the economic environment caused by waves of COVID and Ukraine-Russia conflict. Early in the second quarter, there was unprecedented supply chain disruption in China due to prolonged lockdowns in major cities, especially Shanghai. Despite these headwinds, our team rose to the occasion. We have continuously refined our business strategy, and we saw the positive impact of this effort in the second quarter. This relative success in a harsh environment was enabled by our flexible business model. We are constantly innovating to find new products to address emerging areas of growth. A great example is the category of off-road vehicles. Our off-road vehicle revenue in the second quarter increased by 84% year-over-year. In the first half of 2022, we introduced the all-electric golf crossovers. Monthly production jumped to 2,000 units from just double digits in March. Customers are thrilled with our new products, and demand is high. With the trend of electrification of vehicles, we intend to develop a variety of new all-electric off-road vehicles such as UTV, ATV, and so on. We will launch those new products as the year goes on. 业内人士估计，该产品未来几年内每年可能增长19%，到2028年达到22亿美元的市场规模。我们将努力，还在不久的将来通过推出更多的新车型，并培养我们的营销和分销能力来打造我们的市场份额。科华。 Off-road vehicles will present a substantial market opportunity around the world. Industry resources, industry sources estimate that this product category will grow by 19% a year for the next few years, reaching a market size of $2.2 billion in 2028. We will work hard to capture a share of this growth by soon introducing more new vehicles and building our marketing and distribution ability. 展望未来，我们的业务通过战略调整，近期我们将会在纯电动非公路车领域发力，使之成为该领域的领导者。另外，在国内纯电动汽车市场领域，我们的换电模式具有相当的先进性。但根据目前疫情反复以及中国电动汽车市场还没有进入健康有序发展阶段，这里我指的是现在头部几个厂家都在拼亏，所以我们进入拼亏是没有这个能力，也是不明智的。该业务现在我们保持跟踪完善小规模运行，等到中国国内电动车市场进入健康有序发展阶段后，将加快推进。我们的业务战略还在继续调整，使我们的公司发展为更有竞争力的业务多元化企业。科华。 Going forward by strategically adjusting our business, we believe our near-term efforts in all electric off-road vehicle sector can make it a market leader. In addition, regarding our battery changing equipment and battery exchange service, we have cutting-edge battery swapping technology in the EV market in China. However, resurgent waves of COVID and the lack of healthy growth in the China EV market are impacting the battery swap effort. What I mean here by the lack of healthy growth in the China EV market is referring to many Chinese EV manufacturers are competing at a loss in order to capture the market share. We will monitor market dynamics and improve operations moderately. We will accelerate the battery swap business once China's domestic electric vehicle market is healthy and stable. Meanwhile, we will continuously refine our business strategy to make Kandi more diversified and competitive. 现在开始问答环节，科华对英语，英文的问题，这个提供翻译。请开始吧。 Let's now start the Q&A session. Kewa will take any English questions and translate for me. Operator, please go ahead. Thank you. Ladies and gentlemen, at this time we will be conducting a question and answer session. If you would like to ask a question, please press Star and then one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star and two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the Star keys. Our first question is from Harold Obori, who is a private investor. Please go ahead. Hello. I have three questions. Sorry. Having to do with Kandi's temporarily capable highway speed EV cars both in China and in U.S. Question one, back in April, a China auto web portal reported that the Kandi K23 has been relaunched in China as the Henghe HRQ7000BEV01. Can Mr. Hu explain the rationale and significance of this to Kandi to include what it means financially to Kandi, both now and in the future? It does seem that Kandi is the assembler of the car. 好的，谢谢您的提问。让我翻译一下您目前所说的内容。我对康迪临时提交的就是高速电动汽车有一些疑问，包括在美国和中国的市场。第一个问题呢，就是在四月的时候，中国汽车门户网站报道了康迪K23已经在中国重新推出，型号为一个叫恒合HRQ7000BEV01，胡先生是否能解释一下这背后的来龙去脉，以及对康迪而言，现在和未来的财务意义是什么？就是报道确实说康迪是这辆车的组装商。 恒合呢，是我们与恒润合作车辆时采用的商标。我们与恒润的合作主要是我们负责生产换电模式的纯电动汽车部件，并由恒润采用我们的部件组装成整车。这个合作主要是能够达到合规生产和销售，因此，会增加我们电动车的部件的销售。 Thank you for your question, to address that Henghe is a trademark and basically the brand we use for all the EVs we cooperate with Hengrun. Our cooperation with Hengrun is mainly that we are responsible for the production of the electric vehicles that enable the battery swap mode. We produce the motors, the parts and then Hengrun will add up our parts and assemble to be a whole vehicle. Basically the cooperation is mainly to achieve the compliance in terms of the production and sales in the PRC market. In terms of the impact of financials, it will definitely increase our sales of the EV parts. Thank you. Question two. Facebook Marketplace has a small used two-door white UTV EV with the Kandi name on the grill that looks exactly like the Hengrun HRS1 in China. It's being sold by the Dallas-based iDrive1 dealership. There's not a lot about this car on the net. I noticed that the Chinese version is a full speed 102-mile-per-hour car as compared to U.S. 35-mile-an-hour limited car. What is Kandi relationship to the small EV? 我第二个问题是，我比较好奇，在美国的这个脸书Facebook上面的销售市场，它有个Marketplace中，看到一个小型的二手、两门的白色UTV的纯电动汽车，而且这个就在这个车的前面进气格栅上面，看到有康迪的标志，看起来就是与中国的恒河，刚才提到的HRS1，一模一样的。而且它就是在位于达拉斯的一个叫iDrive1经销商出售。但是网上关于这辆车的信息并不多，而且我也注意到这个中国版的这辆车，是全速，就是每小时可以，速度是可以开到102公里，而美国的限速只是每小时35英里。那我想问一下，康迪和这个小型电动车有什么关系？ 这样啊，因为这个车啊，是我们跟恒河合作的一个，采用它的外形来做一个低速的UTV。那么，由于我们的那个中国的汽车吧，还没有一台能达到DOT这个气囊的技术要求，其实现在中国还没有这个车在美国这卖啊，所以在美国呢，我们这个车只能限速，按照UTV的就非公路用车的标准，在销售。 Yeah, basically we are using the same, the layout, the frame from the cooperation with Hengrun. Why we cannot offer- 不，恒河，恒河。 Hunghe. Why we cannot offer the full speed EV in U.S. is basically because we have not yet met the airbag technical requirements by DOT, especially for the safety issues. Hence we can only offer you know those are the UTV or NEV version in the U.S. market at the moment. Thank you. Last question. The iDrive1 dealership in Dallas also seems to be a primary seller with a big inventory of both the K32 NEV truck and the $3,500 Trail King electric bike. How are they selling overall, and will the K32 ever be considered for sale in China as a full highway truck? 我最后一个问题就是，这个刚才提到达拉斯的iDrive1这家经销商呢，好像就是主要的卖家，有拥有大量的包括K32短途卡车和就是价值$3,500的Trail King电动自行车的库存，那他们的整体销售情况如何呢？然后另外就是这款K32会考虑在中国作为全公路卡车销售吗？ 这两个问题，你说的这个公司应该销售——经销商应该是美国的经销商吧。我们美国公司 对，他就是在达拉斯。 对，在达拉斯的经销商吧。我们美国公司，就美国的公司把产品卖给经销商，至于经销商的具体销售情况，我们不是那么了解的，这个可能你要问美国公司，因为他那个自行车好像还不是我们生产的。另外那个K32 UTV，我们是专门为美国市场开发的一款全封闭纯电动的高档UTV，因为它还不是汽车，在国内还没有这种市场的需求。谢谢。 There are two questions here. First of all, it's about the question for the iDrive1. That's the dealer in Dallas. Our U.S. entity, SC Autosports, sells the products to all the dealers including iDrive1. As for the specific sales of those dealers, we won't be sure, because, you know, they may have some other products that is not provided by us. We don't have too much information for the whole sales per se. As for the K32, that's the UTV that we designed specifically for the U.S. market because it is in the scale of the fully enclosed the EV type. In China, there's no such market demand. At the moment we don't have the plan to sell it to China yet. Thank you. Thank you. Thank you very much. The next question is from Terry McLemore of McLemore and Associates. Please go ahead. Yes, thank you. I wanna cover a little bit more on the battery swap with Hunan Hengrun. There was a press release back in January that announced the initial framework to that battery swap. Can you tell me, has that deal been activated? The project we're working with Hengrun is progressing in an orderly manner. In June this year, the Henghe brand H23, the model H23, has already completed the relevant procedures at the Ministry of Industry and Information Technology of China, such as the product announcements, such as the environmental protection policies and then the tax exemption. Basically we have comply and fulfill and complete the license of the sales in China. Okay. Is the Kandi brand gonna be used on that ride hailing program? Is that for the 300,000 vehicle program for the battery exchange? For the sales in the current platform in China and other channels, the reason we are working with Hengrun is because they have the production license and qualifications. The brand Henghe will be the trademark and the brand that we cooperate with Hengrun, you know, EVs for the China market down the road. They'll be in Henghe. Yeah. In the future, and in the right timing, we may use the brand Kandi again, but for now we'll adopt the brand Henghe as our sales of the product in China. Okay, finally, what does each partner primarily contribute and what percentage goes to Hengrun and what specific products and services? Yeah. For our cooperation with Hengrun is similar as the model we used to work with Geely in the past. Basically, we are responsible to manufacture the parts of those EVs and then sell them to Hengrun, which will assemble and sell it to the customers and even to our own source of customers. We are taking different steps in the whole flow. There's no such the percentage of the products because we're working on different flows. Hope that can answer your question. Yeah, it does. I appreciate it. Thanks for your time. Thank you. Thank you. The next question is from Michael Pfeffer of Oppenheimer. Please go ahead. Thank you. My question. With Kandi stock price trading at such a massive discount to cash working capital and shareholder equity and Kandi sitting on a huge cash stockpile, why hasn't the company been more aggressive in completing and even adding to last year's announced $20 million share buyback? 他这个问题是说现在康迪的股价交易啊，就是相对于现金、营运资金、股东权益就是有如此大的折扣，而且呢，而且我们现在这个公司的现金储备也非常大，为什么公司没有更加积极地去完成甚至增加去年宣布的$20 万美元股票回购呢？ 这个问题啊，受疫情不断的反复和俄乌冲突的影响，国际经济形势呢，也非常严峻。在这样的情况下，公司管理层认为，为了公司必须有足够的现金来应对不断变化的经济形势。我们清楚公司的股价被严重低估，但我们相信，随着我们业务的战略调整的逐步到位和公司业务的业绩的提升，我们股价一定能够回到理性。管理层认为，在现在这种经济形势下，一味靠回购股票来提升股价是不明智的，但我们也会在适当的时候啊进行回购。谢谢你的关心。 Thanks for your concern. At the moment because of there's all the huge influence from the fresh outbreak of the COVID, the resurgence of the COVID, and the lockdown in PRC market, plus the military conflict between Russia and Ukraine. The whole international economic situation and the condition is very severe and uncertain. In such condition environment, the management believe that we should hold the cash to cope with the upcoming uncertain economic situation. We want to go through this time and in the meantime, we know that the share price of the company is seriously undervalued, understated. However, we believe that with the gradual adjustment and refinement of our business strategy, and then the improvement of our company's financial performance, the share price will back to the reasonable level. The management believes that in the current economic situation, it is not a good move to blindly rely on the buybacks to increase the stock price, because that may not be a firm or consistent move, but definitely we will do the repurchase of the shares as planned. One other comment, to be able to buy back shares at less than half book value at a 25%-30% discount to cash seems like a no brainer, particularly when compared to past buybacks at prices up to mid-$5 price by both the company and Mr. Hu personally, along with at least one other director. On the last conference call, a suggestion was made the company consider looking into a more formal Dutch auction tender, something that would certainly bring a lot of attention, a positive attention to Kandi at this perfect time due to its strong cash position and likely revenue explosion ahead this year. The key to success with the Dutch auction is it will remind all that Kandi is trading under cash in the bank. Thanks. 好，但是呢，就是在以书面价值一半和现金折扣25%到30%的价格来回购股票，这个似乎是一件不费吹灰之力的事儿，特别是就是公司本身，还有胡总本身，还有就是去年，还有至少一名董事吧，在过去都以高达$5的价格来回购股票了。而且在上次财报会议当中呢，也有人给公司建议，能够考虑研究一下一种叫荷兰式的这种招标，就是回购股票的方式，那这是一个非常完美的时机，这也会在你回购的过程当中带给康迪很多积极的市场上的关注，能够有助于公司的不仅是现金，而且也有可能增加收入，而且会就是不断地提醒其他人，这个康迪是在银行现金下进行的交易。 那个，我刚才也是已经在说了，在现在的经济形势下，靠那个回购股票来提升股价，这可能不是很好的时机，这我们要到核实的时候。至于荷兰式的这个方案，讲实话，今天刚听到，我还不知道是怎么一个情况，这个Kewa你可以对接一下，好解释一下荷兰式的这个拍卖招标是怎么一回事？我是今天第一次听到，你可以了解一下，假如有什么好的建议，好的方案，我们到时候也可以考虑。谢谢您。 OK。 As I explained earlier, we try to be conservative and keep our cash flow in the meantime because we believe that the buyback may not be a long-term plan that will increase our share price from a fundamental standpoint. We rather focus on our business strategy and operations. However, we would like to explore the Dutch auction, the tender offer and see if that works and if that makes sense to the company and if that makes sense in the current market. We will explore and you know get back to you guys later if we have plans to do so. 另外，我们在去年，我个人也好，公司也好，都在五块美金左右回购了不少的股票，这说明我们对我们的未来还是很有信心的。我相信我们买的，肯定到时候肯定不会这个价。 除了Mr. Hu和一些其他利益相关方，我们以每股大约$5的价格在去年购买了Kandi的股份。这表明我们在公司的未来有信心。而且，我们将探索并确定是否是好时机，再购买更多的股份。但显然我们对公司的未来有信心。 Well, it's probably a much better buy here at these levels. It's half the price. Thank you. 但是比较起来，在现在的价位上买当然是更好的，很划算的一个交易了。不过谢谢。 Mm-hmm. Thank you. The next question is from Arthur Porcari of Corporate Strategies. Please go ahead. Thank you. Good evening, Mr. Hu. On last quarter's conference call in 10-Q, the company surprised the shareholders with the unexpected $70 million U.S.-based golf cart agreement with units already being sold. Though this huge two part order in size was disclosed in the Q1 10-Q, this order was never announced as a freestanding PR. Yet the new product line, if target reached as reported last quarter's 10-Q, would likely generate revenues this year almost equally Kandi's total revenues last year. Can you explain to us what possessed management back at the time in Q1 when everyone's business was crashing for Kandi to suppress publicly announcing a new product order of this size at a time when Kandi stock was also collapsing and has never recovered along with the market? Also, from the comment in today's PR, it's safe to assume Kandi's golf cart business is expected to grow in future years. If so, how much? Could you pass it on and ask that question to Mr. Hu, please. 在上个季度电话会上，公司给了大家一个惊喜，提到了七千万美元的美国基地高尔夫球车协议，而且这些车辆都已经开始出售了。但在此之前，公司从来都没有宣布过，只是在发表10-Q的时候报告了这条新的生产线，那的确是很意外的，因为单独这份合约就有七千万美元，可能会产生在今年的收入中，几乎等于Kandi去年一整年的总收入了。所以你能不能讲一下，在当前的这个市场状况下，这个合约，我们也看到了，在新闻当中提到了我们高尔夫球车的大力增长，那这个将是增长到什么程度？你能不能给我们增加一些更多的细节。 确实这样，这两个，因为我们觉得通过战略调整，我们终究得把事情先做好，这个至于新闻什么东西，我们都没有很重视，这个以后我们会注意这方面的问题。那么这个高尔夫球夸驾车，我们从三月份开始，和跟新斯合作来做这些事情。那么三月份是出厂了六十台，那么现在是每个月都在两千台左右，已经从三月份的六十台，到四月份的四百、六百一十八台，到五月份的一千零一十九台，到六月份已经出了一千九百多台，但是这些都是大部分还在路上，还没有体现在，因为这个要在美国的销售公司销到以后才能够进入我们的财务数据。但是今年$7,000万我看就这个车肯定会超过，这个$7,000万还是比较保守的。从现在市场的反应来看，我们的产量也已经拉起来，现在每个月两千台已经没问题了。谢谢你的关心。 Our mindset was to establish the fundamental of the new business, because we always try to adjust our strategy. Our plan was want to get it materialized before we have a further very concrete announcement to the public. We'll definitely take that in mind and it'll be more clear in the future. From March, we have already shipped out from China to our U.S. entity a few of the dozens of the pieces of the golf carts. From April and May this year, we start to deliver over thousands of pieces of the golf carts to the U.S. However, because majority of those deliveries is still in shipment at the moment, we only recognize a few hundreds of the revenue of the golf carts for Q2. The rest is still on the way to U.S. entity. From now on, it's no problem for us to have a consistent production of over 2,000 pieces per month. That's our situation for now. Well, that sounds like a pretty good answer. 2,000 pieces per month. At the retail level, that would be what? $60 million a month? That's quite a number for a company that's sitting here with what do we have? $180 million market cap, only $18 million in debt and $230 million in cash. Seems to me like you should be in a position where you can start buying back some of those shares. Go ahead and send that on to them right now, Kewa, just what I just said. 他说如果你能够保持每个月有两千台的这个生产，那就是真的是很令人惊异的。这个也就相当于你能够有六千万的这个收入，然后加上你现在的现金，那我觉得你更应该去回购股票。Go ahead. 好的，这个，这个我们在适当的时候会考虑。现在我们最关键，从三月份到现在，我们已经提升到每个月两千台了，但是这两天海口又封城了，要是没有特殊情况，我们是肯定能完成或是超额完成的。希望能够，这个不会出现更大的情况。 I mean, definitely there's we have a bright future in the golf cart productions and we definitely can achieve a really good target of the sales in all the the ideal and smooth circumstances. However, there's just a lockdown in Haikou, which our facilities is located get locked down lately, and definitely that will kind of have some impact and hold up of our productions. Down the road, we believe we can deliver a very good performance in terms of the golf cart productions and the sales. Okay, well, that's, and by the way, I may have misspoke a moment ago. I'm not sure if I said $60 million per month. I meant $60 million for the quarter. Again, that would be the gross amount at the retail level. For the past couple of conference calls, there seems to be a continuous disconnect between Kandi's stock price and the reality. I don't know, it just seems like we ask the same question each time about if we're gonna do anything about trying to increase the exposure. All we've done is we've actually gained and lost a couple of analysts during that time. For us to be sitting here, you know, trading at a 35% discount to cash with no debt, at 200, you know, cash even went up this past quarter, as you said, $232 million in cash and $180 million market cap. It just seems like we get the same question every time. Well, we know we must do better in trying to find analysts for the company. What. It just never seems to happen. My feeling is that we've got to do something. I mean, you have Blueshirt Group that's been getting paid for four or five years now. All that's happened is stock's gone down since then. What are they getting paid for? I mean, they supposedly have a great reputation in the world. Anyway, if you can pass that on right now, I still got a few more things to say, Kewa Luo. 他说，但是我还是觉得很懊恼，就是说，我们现在这个股票呢，就是交易在，相比现金是30%、35%的折扣，然后整个这个市值才一点八个亿。而且看上去我们这个，这个季度现金也是很好的走向。然后每个季度呢，我们都是在重复同样的问题，那公司说我们会增加我们的知名度，会继续做，但是似乎就是没有实际行动。我们也，公司呢也雇了The Blueshirt Group蓝衬衫投资者关系公司好几年了，那他们也是收取一定的费用，就是来帮助我们提升股价、提升股票的知名度。我们也一直在说我们会争取找到分析师来为我们公司来背书，但是就是说并没有什么实际行动。就是我想知道，我很懊恼，想知道公司必须要做点事情，不是坐在这地方，然后每个季度被问到同样的问题。 这个问题应该是这样，因为我们这个进行战略调整后，那个整个这个销售收入的数据是在不断地调整，其实还在下降，我们先到今年才慢慢地给它调整完了以后才慢慢地重新起来。那我觉得，在这之前的话，确实我们还是没实现我们过去说的一些电动汽车怎么发展，因为中国的很奇怪，这个电动汽车每一台，他们几个头部企业都是一台亏好几万在卖，为了抢占这个市场，所以我们这点钱根本在这里面就没办法跟他们拼。所以我们做战略调整，就是电动车部分，那我们真正做得大的时候是电动车产量起来，那么现在每台车他们都在拼，拼亏，每台车都亏好几万。所以这样的话，我们是先在这个市场上先跟着，不大规模地做小量的先跟着，等它到正常的时候，我们这个再加大投入来做这些事情。所以我们过去你说的也很对，没有什么进展，那其实我们在调整过程当中也是非常痛苦，希望能够理解。但是通过我们的调整，通过中国电动汽车市场有序的竞争，大家都在做不亏本的事情了，那我们就会这个加大投入来做这些事情，因为我们的换电技术确实是在国内领先，而且是很有前景的。现在关键还是这个不正常，大家都在拼亏，这个我们吃不消，我们就这么点钱，一两亿美金的钱，你说他们是几十亿几十亿的亏。所以，我们觉得我们要插入这里面去是不明智的。 All right. We understand your frustrations and samples we would of course try to expand our productions and sales scale in China EV market. You may heard about our update or you may heard about the articles in China that, you know, is still in an unhealthy conditions that those major competitors the EV product production companies they will just in order to occupy the market shares they will sell with loss. Each car they sell they may have a deficit or loss with few tens of thousands RMB. It just doesn't make sense to us. Well, for them, they may have spent over billions of U.S. dollars to burn and to take up the market occupancy in China market. With the cash we have, over $1 million or, you know, our cash, it's definitely not enough to compete with those companies. We can only wait until when the market becomes more healthy in a more orderly manner, then we could go in and expand our sales and production scale. Definitely that's our plan. At the moment, it'll be unwise or doesn't make quite much sense to do so, just to burn the money for no reason. We'd rather be more conservative and wait until there's a better timing for us to expand the sales productions. All right. Based on the now reported first half and the balance of the golf cart order talked about it in the 10-Q and some comments you just made, you know, it looks like Kandi could actually have its best year ever based on both business and financial condition this quarter, I mean this year. Very unique based on current overall economic and market conditions. Yet in spite of this likelihood, you know, you still managed to keep this thing as a best kept secret. You haven't answered me why? Why would we only put one press release out by the company the whole year, yet in the past we put out 20-40 every year. The one press release was way back in January 10th and it really had nothing to do with golf carts. Is this just going to be a new policy? You're just going to go dark or are you going to start putting out press releases again? It's just amazing. Pass that on and I got a few more short questions and I'm done. 这个问题就是说，现在我们已经近，今年的半年过去了，其实康旗目前来说的表现还是不错的，特别是在当下的经济环境和市场的环境下。但是呢，管理层呢，极其的这个安静。就是过去我们一年可能有二十多则新闻来公布，来报告公司的各项业务的进展，而今年呢，可能就除了这种常规的新闻季报，那好像就是在一月份的时候有一个有关业务的新闻，就是这是不是一个现在公司的新的一个政策或者一个做法，就是不发声了，就埋头苦干了。就是我们觉得很懊恼。 其实这个我们也不要懊恼。一是我们现在是在调整期嘛，那么也像那个对我们的股票股价不看好的，他该走我觉得也就应该走掉，让他就干脆啊，到低点了以后，等我们再一起发力的时候再回。但相信Kandi的他就一定跟着我，这样肯定他不会吃亏。那既然他们不看好，那该走就走掉，免得再骂我们。所以我们低端一段时间再说，这也是我们的一种策略。 I hope you understand that it's still a rather a transition period for us to adjust our strategy, and we find our work plan to compete in the EV market. Of course, we understand that if certain investors or shareholders they are not satisfied, you know, we cannot make them stay. Hopefully, we have picked up their confidence. They have to show this day of us to encounter such a transition period. Hopefully we can enjoy the fruitfulness of result, you know, in the future. Okay, just a couple quick ones now. I'm sure Mr. Hu is not happy with what he is seeing. He and I go back together all the way to 2008 when his company started. In that year, he had, I think, 13.5 million shares of stock. At the peak it was probably worth, I don't know, $65 million-$70 million. You look at the stock he has today, he has more stock, and I know he has paid $5 million for the stock he has already bought. He has got more stock and its today's price is probably worth closer to, I don't know, $25 million or $30 million. He can't be happy with this, but he has done, in my opinion, that is why I feel frustrated. He has done a great job keeping us alive, and well, and safe, and yeah, gave people an opportunity to buy the most undervalued stock in the world. It is certainly not going to go out of business. Maybe in this market that is a great deal. Getting off that bandwagon, I just got a couple of last questions here. How much of an effect does the China tariff have on Kandi's golf cart, electric bikes, power sports and off-road business? Does the company anticipate a lifting of U.S. restrictions on these? One last piece with next to golf carts, how much are the NEV and electric bikes expected to contribute to this year's revenues? Does management have an estimate for total sales in the off-road business this year? 他说，在这两个问题之前，他有一个感受，他说你可能不愿意听，但是在过去股价很好的时候，你可能没有拥有那么多股票，但是你的价值多于你现在所拥有股票的价值。虽然你也去年花了不少钱来回购股票，但是在现在的目前状况下，其实你的价值是在缩水的。当然，这个公司会一直生存下去，并且发展得很好，你也给了大家一个很好的机会，让大家能够有机会买到价值被贬低、不被看好的股票，以这么低的价格买入。所以，但是这个事情就很让人难以置信。好，我最后有两个问题，第一个就是中国关税对康迪的高尔夫球车、跑车、非公路车这些业务有多大的影响，那公司是否会预计会取消这些限制。那第二个最后一个问题呢，就是除了高尔夫球车以外，那短途小型汽车和电动汽车这些销售你预计在今年大概能够在整个公司整体销售收入里面占比多少，能有多大的贡献？那管理层对今年的美国销售，你觉得会有多少？ 那这样，你问的第一个问题，高尔夫球车和其他非公路用车出口，中国是没有关税的，只有退税。在美国进口呢，类似这样的产品呢，目前是10%的关税。在现有条件下，在美国的销售价格是根据现有关税而定的，至于以后如果有变化，那销售价格就会有调整，这对公司的收入不会有很大的影响。这是第一个问题。第二个问题呢，由于受疫情反复和俄乌冲突的影响，除了高尔夫球车，高尔夫球车今年我们肯定是增长，那之外呢，其他车型的销售啊，应该跟2021年差不多，这是我们的预估计啊。 First, about the questions for the tariff. There's no such tariff from China imposed on our exports, you know, because there's only rebate, but then there's no tax or tariff charge on our exports. For the shipping to the U.S., the U.S. government they charge 10% tariff of all the imports. Under the existing conditions, our sales price in the U.S. market is determined according to the existing tariff the tax rate. If there's any future adjustment down the road, our sales price will also be adjusted accordingly. Basically there's no such a significant impact to the company's revenue upon the change or adjustment of the tariff tax rate. And then the second question about our sales forecast. Well, because of the significant impact, you know, from the resurgence of the COVID, the lockdown, as well as the conflict between Russia and Ukraine, the whole market is uncertain. Definitely there will be an increase of golf carts in this year. For the sales other than the golf carts, the ATVs, we expect the sales to be similar to the level of 2021. That's our estimation. Okay. Well, that'd be fine anyway. Well, we'll just see what happens next quarter, but it sure seems to me like this could be a record year for the company, and it may be a record year for a low price as well of the stock, which is a great opportunity for those who are smart enough to take advantage of it. Hey, to each its own. Thank you very much, and great job coming up with this new product line. It looks like it's gonna be huge in the U.S. from what we've seen with all the dealers that have been added on recently. Thank you, and talk to you later. Thank you. Thank you. Operator, we can take next question. Thank you. The next question is from Frank Blatterman, who is a private investor. Please go ahead. Yes, thank you. Good evening, Mr. Hu. Is there any agreement, written or oral or signed in blood, that prohibits Kandi from exporting street-legal and highway-capable cars to any country, including the USA? I'll pause here. He says, is there any written or oral agreement prohibiting Kandi from exporting street-legal and highway-capable cars to any country, including the USA? The main reason that we have not offered our full speed EVs product in the U.S. is because that we have not met the technical requirements of the airbag safety requirement standard by the USDOT. As a matter of fact, there is none of the China-based EVs product that has fulfilled such requirement and been you know offered in the U.S. market. Even though the mechanism is rather self-certification you know process. However, if something happened, we are in big trouble if we have not met such standard and yet we offer the sales in the U.S., because the airbag safety standard in the U.S. is just higher than the rest of the world, like the EU or the China region. Even though there is no such written or oral documents or agreement to prohibit us to do so, but we're just doing the right way to make sure that first we can fulfill such standard, then we can offer the full speed EVs in the U.S. market. We just take it by, you know, the correct order. Okay. Thank you. I do have a second question, and then a third one. Second question, are other modifications needed besides the airbag for the K23 and K27 to be highway legal in the U.S.? Is that the only thing that is needed to make them sellable here in the U.S.? Yeah. The major obstacle is really the airbag safety requirements and the technical standards request by the DOT. Other than that, we have pretty much fulfilled the rest of the requirements. Okay, very good. My final question, why has Kandi not devoted whatever resources are needed to quickly design and incorporate the needed airbag changes to bring Kandi's vehicles up to DOT standards for highway use to take advantage of this opportunity to sell inexpensive vehicles in the United States due to the high gasoline prices and the climate change issue? It seems to me that this is not brand-new technology. China has some of the best engineers in the world. Why haven't we devoted whatever resources we have to getting this done? That's my final question. Thank you. 我的最后一个问题呢，就是说，康迪有很多资源，也有很多非常优秀的工程师，那我们为什么就是不明白，就是为什么康迪没有投入自己已经有的资源呢，能够根据就是美国对汽车在高速公路上使用的这种要求去对车进行整改。特别是在现在整个的经济形势，而且在美国的油价也尤其的高，因为这是一个很黄金的机会，能在美国销售这种质量又好、价格又非常亲民的电动汽车，我就是不理解，就这个事情这么难吗？就没有人能够，就是公司就没办法达到这个标准来把车调整符合美国的安全气囊的要求。 前面我已经说了，就是中国还没有一台车能达到DOT安全气囊的要求，因为它的这个安全气囊就是一碰车以后，它就在爆发点，你看中国和欧盟的都是一个标准的，一个人，假人的标准。那美国呢，是有瘦的、胖的、长的、矮的，它爆发点都不一样。所以这个呢，还不是我们一个公司能够解决的。前面我说的中国还没一台车能卖到美国，可能也是这个问题。有一个厂家在美国碰了一次爆，一百八十多台车还没达到要求，所以这个还有待于中国整个工业水平的提高，所以我们还在努力。我相信中国也很快能跟上这方面的这个技术水平，但目前还做不到，但具体什么时候这也很难说。谢谢你的关心。我们会以低速车的这个形式在美国开拓这个市场。下半年我们还会推出多款的低速车，在美国市场销售，这个市场在美国也很大，那我们就在美国，在那个安全气囊还没达到要求的情况下，不一定追求那种公路用车了。 Thanks for your concern and suggestions, but as we mentioned in the past question, the requirements of the airbag safety standard is just much higher than those in China and even E.U., because well in China and E.U. basically we have the similar standards, but in U.S. we have to tackle different issues such as the for different size of the passengers, the drivers, and then it's not just a matter of one single company being able to tackle, it's rather the whole industrial skill set level for the whole country for that would work together to tackle such issue. At the moment we are trying very hard to do so, but I guess we have to wait until the whole standard being boosted in terms of the country level in China. But that will try our very best to improve though the timeline can't determine at the moment. Meantime, we will focus on the NEV market and the sales in the U.S., and in the second half of the year, we will launch more different models on the NEV to improve our market occupancy in the U.S. market. Our focus now will be NEV, but that will work on the safety requirement in the meantime. I understand what you're saying, it just seems that this is old technology at this point, and it should not be all that difficult to achieve, considering the resources that are in China with the engineers and the fact that other companies are manufacturing electric vehicles, I'm sorry, gasoline vehicles in China, and seem to have solved the airbag issue for export to the U.S. in their manufacturing plants. No reason for you to comment on that. Thank you very much. Thank you for your time. 他最后说，我并不认为这个会就是比登天还难。他说在中国很多其他的就是制造非电动车，就是汽油车的这些公司也有符合美国安全气囊要求的车到美国来。为什么就是这个技术我们就是达不到。他说你不需要来评论，谢谢你的时间。 因为包括汽油车也没有在美国卖吧，中国的车。 Yep. Thanks again for your question and your concern. I guess we don't think there's anyone, even the gasoline vehicle has been sold by the Chinese companies to U.S. market yet. Basically that applies to all the automobiles from, you know, China-based companies. Thank you very much. Ladies and gentlemen, that is unfortunately all the time we have for questions, and I'd like to hand back to Kewa Luo for some closing comments. Thank you. Thank you again for attending today's conference call. If you have any more questions, feel free to contact us via e-mail or our Blueshirt IR company. We look forward to updating you on our next earnings call in November. This concludes our call for today. You may now all disconnect. Thank you. Bye bye.