Greetings. Welcome to Kandi Technologies Group's First Quarter 2024 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 zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Kewa Luo, Investor Relations Manager. Thank you. You may begin. Thank you, operator. Hello, everyone. Thank you for joining us on today's conference call to discuss Kandi's results for the first quarter, 2024. Earlier today, we issued a press release covering the results. You can find the press release on the company's website, as well as from the Newswire services. On the call with me today are Mr. Xiaoming Hu, Chairman of the Board, Dr. Xueqin Dong, Chief Executive Officer, and Mr. Alan Lim, Chief Financial Officer. Dr. Dong will deliver prepared remarks in Chinese, which I will then translate. After that, we will have a Q&A session. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC. 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 conference call are in U.S. dollars. With that, let me now turn the call over to our CEO, Xueqin Dong. Go ahead, Dr. Dong. Hello, everyone. I'm Xueqin Dong, the CEO of Kandi Technologies Group. Welcome to today's conference call. We are pleased to report a solid start to the year with total revenue for the first quarter, approximately $20.7 million, and net income around $0.8 million. Despite some fluctuations in sales and overall income due to the adjustments in our sales strategy, our expansion in the North American market is progressing smoothly through collaboration with large nationwide chains. We have also made advances in the Southeast Asian and European markets, laying the groundwork for robust sales in the upcoming peak season. It is with pride that we highlight our stable balance sheet and healthy financial position. Additionally, we have repurchased 564,302 shares this quarter, reflecting our confidence in the company's future growth. Currently, we are actively refining our product portfolio. Already in the first quarter, we have begun rolling out our rechargeable AA batteries to the market. Looking ahead, we are excited to introduce starter batteries and a more competitive lineup of all-electric off-road vehicles and electric water sports products. We anticipate these new products will significantly drive our sales revenue upward. At the same time, we are gearing up to launch our limited edition golf cart collection. ...These unique series, created in partnership with the National Football League and Lowe's, will feature branding for all 32 NFL teams. This initiative is a clear indication of our confidence in our future growth and our steadfast commitment to delivering value to our shareholders. I am confident that our strategic adjustments will garner the outstanding support of our shareholders. 现在开始问答环节，我和胡晓明董事长将回答大家提出的问题，科娃和林正明先生会对英文的问题提供翻译。啊，请大家开始提问吧。 Now we will move on to the Q&A session. Chairman Hu Xiaoming and I will answer your questions, and Miss Kewa and Mr. Alan will provide translation for English questions. Please go ahead and ask your questions. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 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 Michael Pfeiffer with Oppenheimer and Company. Please proceed. Hi, thanks for taking my question. On the year-end 10-K press release, it was good to see the CEO for the first time mentioning Lowe's and making what appears to be an attempt at a very positive comment for the balance of this year. However, I assume due to a translation error, what should have been a positive statement ended up putting a negative spin on the stock that started the severe price decline. Management was immediately notified of the error, which should have been immediately corrected, but instead chose to ignore it. Here is an excerpt from the PR that contained the confusing error. Do you want to just translate that quickly? Sure. Ah, this question is about the year-end 10-K press release, where for the first time we saw the CEO mention Lowe's, and give a very positive evaluation for the time below this year, which is very encouraging. But, uh, I guess it might be because of a translation error; the original should have been a very positive statement, yet it caused this stock to start dropping sharply. Management was immediately notified of this error, but it should have been corrected immediately. But management chose to ignore it. Below is an excerpt from the press release, uh, with the vague error. Go ahead. Thanks, Dr. Dong, CEO of Kandi, commented: "We acquired Northern Group to expand our sales channels. Moreover, we further strengthen our partnership with Lowe's, expanding to more than 10 supercenters in 2024, thereby broadening our market coverage in North America. We're proud to return to profitability in 2023, marking an important milestone in our development journey." Lowe's refers to each of its 2,500 stores as supercenters in their advertising and promotions. The PR in question was the first time Kandi has even admitted in a PR that Kandi was stealthily doing business with Lowe's since mid-2022. Without correcting that error in the PR, it gives an impression that Kandi is excited about Lowe's adding another 10 of its supercenters, when in reality, Kandi at that time had long since opened up all of its 2,500 stores based on store managers' discretion by last year's end. Please translate that. Thank you. In the news, the original text says this: Kandi's CEO Dr. Xueqin Dong commented: "At the same time we also acquired the Northern Group, expanding our sales channels. In 2024, on the basis of strengthening cooperation with Lowe's, we expanded to cooperation with more than 10 supermarkets, expanding our market coverage in North America. In 2023 the whole year achieved turning a loss into profit, which is an important milestone on our development path." Lowe's in its advertising and promotion calls its 2,500 stores super centers. The news I mentioned above is Kandi's first admission that since mid-2022 it has been secretly conducting business at Lowe's. Due to not correcting this mistake in time, the outside world may mistakenly believe that Kandi is excited about Lowe's additionally adding 10 super centers. In fact, Kandi has already been doing business in all of its 2,500 stores, and this is based on what the store managers of each store said. Also on the last conference call, Mr. Hu, in response to a question stated: "So for this year, on top of what we are working with the Lowe's superstores, we have now added the corporation with more than 12 or so of the retail chains with different scales. Currently are working on child sales in those superstores. In addition, on top of the cooperation of the supermarket, we are working with the dealership with more than 300 partnerships during 2023. And in this upcoming 2024, we are trying to work with more than 1,000 dealerships in the U.S. market." If you can just translate that and I'll get to my questions quickly. Thank you. 此外呢，在上次电话会议当中，对于一个问题，胡先生是这样回答的，他说：因此，今年除了我们已经有的与Lowe's超级商店的合作项目以外，我们还增设增加了与十几家不同规模的零售...... 连锁的合作。目前我们在这些超级商店推广儿童产品的销售。同时，除了与超市的合作之外，我们在2023年已与超过300家经销商建立了合作关系，展望即将到来的2024年，我们计划在美国市场扩大至与超过1,000家经销商的合作。下面是我的问题。Go ahead. Okay, so the questions. Since Kandi products were already available in all Lowe's super centers at the time of the prior PR quote, what specifically was the CEO attempting to refer to with his partnership with Lowe's expanding to more than 10 super centers in the 2024 quote to broaden market coverage? 我的第一个问题呢，是，既然康迪的产品已经在Lowe's所有的超级中心有售的话，那CEO所提到的，预计2024年在超过10个超级中心扩展Lowe's的合作中，具体是指什么？他是如何打算通过这种方式扩大市场的覆盖呢？ 那么我们上次电话会议提到的十多家超市，指的是除Lowe's之外的其他超市。那么Lowe's是我们提到的十多家超市中的其中一家，谢谢。 So, first of all, when we are in the last conference call, when we met about the, over 10 of the, you know, retail partners, we are talking about Lowe's is one of the retail partners. And, you know, and then speaking of Lowe's, just want to clarify that we actually don't have the access to all 2,500 of them, that rather this portion of it, and we're still expanding based on our negotiation and collaboration. For this question, let me add a bit, to supplement. What question? It's the one he just asked about Lowe's, wanting to enter all 2,500 stores. Actually, is it like that? Because at that time, we sold to Lowe's through Coleman, under Coleman's brand. Then, after we Kandi directly cooperated with Lowe's, it started from 200 stores, 250 stores, 300 stores, to this year expanded to, now expanded to 500 stores, then to June possibly will expand to 900 stores. It's not saying all of them, it's to gradually, step by step promote based on its development, also not all. That, that, this is a misunderstanding, all 2, just cooperate with Lowe's, then 2,500 stores, it's not like that. It's step by step, approximately to now it's around 500 stores, to June estimated will push to 900 stores, yes, so it's step by step to year-end will push to over 1,000 stores, roughly like that, some places not suitable, also can't enter all of them. So, and then Mr. Hu would also like to add more color that, you know, as I just mentioned just now, we don't really have access to all these 2,500 of these retail stores of Lowe's. And currently we have roughly, you know, 500 stores, although maybe, not every those are the 500 stores will carry all of our products. It depends on the category of the products and type as well. But in the U.S., by next few months, we hopefully will expand the retail stores working with Lowe's up to like 600 or 900, or maybe by the end of the year, we expect the stores that will cover our products will be over 1,000. And of course, that's our plan for now. So, to be clear, you know, the collaboration scale with them. OK, that's, that's, give some clarity. Thank you. Regarding Mr. Hu's comment on the last conference call, was this dozen or so the retail chains with different sales? Currently, Kandi sales like confused with the CEO's comments about the Lowe's superstore sales in the year-end PR. So can you just kind of, kind of explain a little bit more about that comment was related to the Kandi sales on the Lowe's superstores. OK，他第二个问题是，他还想请胡总再澄清一下，就是当时还说到，就是十几家具体的零售连锁的名称，以及你还提到目前正在进行儿童销售的活动，那除了店铺名称，能否介绍一下康迪，目前推出的，目前销售的儿童产品的类型。 首先，这个，十多家，这不存在混淆的问题，十多家 Lowe's 是我们十多家中的一家，这个上面已经讲清楚了。那么，他说的是卖儿童产品，这个我们没说过，我们是把我们的产品，也就是现在在卖的是各种非公路用车的产品，而不是儿童产品。但这，这十多家我们都在卖我们生产这个非公路用车。至于我们跟十多家那个，那个超市合作，哪些这个，这个，超市，这个我一下还报不出来，请你，请他到那个我们 SC 的网站上都能看到，我们这个产品已经进到哪些超市在卖，在那个超市上都能看得，在那个网站上都，都能看到。 ... So first of all, I believe that, you know, there have been no such confusion because we keep stressing that, you know, there are over 10 of the retail partners that we are working with, and Lowe's is one of them. As for the list of those retail partners or the magic retailer that we're working with, you can refer to the list on our, you know, Kandi America website. And speaking of the Kandi sales, we are not quite sure, do you mean the scale of the sales being small, or do you mean the sales of the Kandi products? Currently, we are, you know, selling all kind of our outdoor, you know, off-road, like, you know, the all golf carts, the UTVs and ATVs with those partners. Hope he's gonna address your question. Yeah, just I think the child sales was sort of your quote. So I guess trying to understand maybe what type of products are the child sales. Do you, can you delineate that, or is that not what you meant by child sales? Can you remind us where the quote is, when you're referring to the child sales? Yeah, I'll have to find that. Okay. Um- Yeah, yeah, it is, it is the quote. Yeah, I think it's a quote when... So I said it. On the last conference call, Mr. Hu, in response to a question, stated, "So for this year, on top of what we're working with the Lowe's superstores, we have now added that cooperation with more than a dozen or so of the retail chains with different scales. Currently, we are working on golf sales in those superstores." I believe that's a quote from Mr. Hu. If I'm wrong, I'm wrong, but that's what I- Okay, during the call, not in the press. I think he meant trial, not the child. Trial, the trial sales. Trial! Oh, that, that clears it up. Trial sales. Understood. Yes. Okay. Trial. That's right. All right. Well, that makes it clear. Thank you very much. Maybe it was, it translated incorrectly in that quote. Thank you. Thank you. I'm sorry, let me translate this first. Okay. I'm sorry, operator. Yes, we can take next question. Thank you. Our next question is from Steve Miller, private investor. Please proceed. Good morning, Kewa. Just with regard to the previous question that you guys fielded, if you would resume putting out a transcript of your Q&A call rather than rely on third parties, that would give you an opportunity to clear up any misstatements or mistranslation. Otherwise, this is what happens. People are taking statements that in fact were inaccurate. Meaning that my first question is regarding the Lowe's NFL pick-up. Last week, Lowe's added some promotional material on their Google sponsored ads, as well as adding a new website landing page on their e-commerce site, promoting a new line of Kandi golf carts as part of Lowe's $100 million a year NFL exclusivity sponsorship program. From the posting, each of the 36 NFL teams would have their own custom branded Candy golf carts going on sale in August for the full season, fall season. Could you go ahead and translate that? Okay. Okay. I'm sorry, operator. Yes, we can take next question. Thank you. Our next question is from Steve Miller, private investor. Please proceed. Good morning, Kewa. Just with regard to the previous question that you guys fielded, if you would resume putting out a transcript of the Q&A call rather than rely on third parties, that would give you an opportunity to clear up any misstatements or mistranslation. Otherwise, this is what happens. People are taking statements that in fact were inaccurate. Meaning that, my first question is regarding the Lowe's NFL pick-up. Last week, Lowe's added some promotional material on their Google sponsored ads, as well as adding a new website landing page on their e-commerce site, promoting a new line of Kandi golf carts as part of Lowe's $100 million a year NFL exclusivity sponsorship program. From the posting, each of the 36 NFL teams would have their own custom branded Candy golf carts going on sale in August for the full fall season. Could you go ahead and translate that? Okay. He first said, he said, okay. I'm sorry, operator. Yes, we can take next question. ... Ah, so when I saw this, uh, this, that is, when I saw this ad page, it said that sales would start in August. And, our shareholders also saw the information saying that now, pre-paid pre-orders can be accepted. But, from what seems like starting Monday, Lowe's took down these three landing pages, and Kandi America also took down the previous tweets and other information on social platforms. So this is particularly surprising, don't know what's going on, but today seeing the earnings report news released by the company this morning, it mentioned again this collaboration with the NFL and Lowe's. Continue. So my question is what's the status of this new Lowe's NFL golf cart offering? It's a terrific idea and should be heavily promoted by Kandi as well as Lowe's. This is a huge attention getter. Not only will it help Kandi sales, but just as important, your credibility. That's my question. 所以我的问题是到底怎么回事？啊，就是康迪和NFL和Lowe's新的合作，这个是一个非常，非常大的事情，公司应该啊，将这项合作大量的传播出去，这不仅会帮助公司销售，也会啊，帮助公司提升自己的知名度。我想知道现在到底这个合作是进展到什么程度，是一个什么情况？ According to our current understanding, last week Lowe's on this webpage tried it out, so the website still has some small problems and is now being adjusted. We believe next week you all can see all 32 teams' related product information. This is of course a very big deal, and we believe this will greatly help the Kandi brand's promotion and sales growth. Here to explain a bit, it above says 36 teams, but actually this American football only has 32 teams. first of all, you know, there are actually only 32 teams in the NFL, and our Lowe's is the exclusive partner of the NFL to sell the golf cart branded by Kandi. And as far as the website you mentioned, we believe that there are some adjustment to be, you know, taken care of, and we estimate that all the information on the website will be shown again with such news and the product information by next week. Indeed, that is a very big deal for us Kandi, and hopefully that can promote our brand even more better. Great! And then a related question, what other products can we expect Kandi to be selling through the Lowe's Kandi NFL relationship? 我的下一个问题是，公司期待通过跟Lowe's还有橄榄球联盟的这个合作，还会销售什么其他的相关产品呢？ 目前还是就是特制的高尔夫球车，我们的特艾夫，这个高尔夫跨界车。接下来呢，就要看我们下一步的发展了。 the products being sold between Lowe's and NFL of the brand under Candy is the golf carts, and we will see, you know, how it develops in the future, but that's the, you know, the product for golf carts for now. Thank you. my next question is regarding your consultant and regarding the proposed spin-off. On the past two conference calls, questions were asked about a statement in your 10-K disclosing a consultant who was hired back in May of 2023, with the contract to terminate this month. The consultant was paid 300,000 shares of Kandi stock worth $1 million. Alan had responded that the consultant was hired for your plan to spin-off the U.S. subsidiaries as one separately listed public company. Nothing else was said. Go ahead and translate that. 这个问题是关于我们提前雇佣的，有了一年合约的顾问。这个顾问呢，当时我们披露是为了帮助我们美国的，子公司来上市的一个顾问。Continue, please. If I understand your intent, it would be a NASDAQ listing. Candy would retain a majority share position. The spin-off would release value of Candy not represented in the current share price, and allow it to book as a separate company, its own sales and PNL. Based on NASDAQ minimum prices and market cap however, logic would seem to make it mandatory that Candy's stock price would have to be trading at least three or four times higher than currently to get an underwriting sponsor firm to manage the IPO. Candy shares have done nothing but going down since the consultant was hired. Can you go ahead and translate that? 他说，这个如果我理解正确的话，我们是要将康迪美国剥离出来，成为一个独立的NASDAQ上市公司，这样，才能够释放康迪作为一个独立制造商真正的价值，然后也能够有自己独立的一个记账体系，有自己的损益记录。但是看起来，自从我们雇佣了这个顾问之后，我们的...... 我们的股票一直在下降，也没有听到任何这个IPO的进展。 OK, my question is what value has the $1 million consultant contract brought to Kandi, given where Kandi share price stands today, and what is the contract's current status, and has the consultant been retained again or will be in the near future? 我想知道的是，我们花了100万美元来顾问，来雇用这个顾问的价值是什么？既没有帮助到公司的股票，然后呢，现在也不知道这个状态，我们是否已经又跟这个顾问续约了？你是否告诉，能够告诉我们现在目前是一个什么样的情况？ 这个合同呢，我们没有再必要续约。当然了，合同虽然要到期了，但是相关的业务还是在有序地推进。这笔顾问费你算，肯定不会白白地浪费掉的。 Even though maybe the contract has, is expired. However, the related project keeps moving, and the whole process is being proceeded, so we don't think those consultant fee will be wasted. When do you anticipate the spin-off will be finalized this year? 啊，您觉得就是这个公司剥离出来上市什么时候能完成？是今年吗？ 相关事项都正在有序地推进，顺利的话，今年是能完成的。 So first of all, you know, the plan is to do the dual listing instead of spin-off, which is two separate concepts, and the related process is being, you know, completed in orderly. If things go smoothly, hopefully the whole process can be completed by the end of this year. Are you anticipating any new Kandi America acquisitions to be made before the spin-off will be consummated? For example, additional distribution or manufacturing facilities. 您预计，就是在这个剥离之前，公司会有其他的收购啊，然后，收购计划来增加公司的生产，生产产能啊，有，有这方面的计划吗？ 暂时没有。 We don't have such plan or consideration for now. Out of curiosity, was the consultant Park City Capital and his company or is it someone else? Why didn't you disclose that in the SEC filings? Are you asking who is this consultant, right? How come we don't disclose in the SEC filings. Yes, yes。 他问的就是这个，这个顾问是谁，为什么你不能在SEC的文件当中披露他的名字。 这个我们没，没披露吗？啊。 哦，这个也不需要披露。 啊 ？ 啊，本身我们不需要披露谁是我们的上市顾问。 哦，哦，那个你，你跟他说呗。 Yeah, well, actually, you know, for the as per the SEC disclosure guidance, we don't have to disclose the name and the party of our consultant, because they are not the underwriter. So hopefully they can address your question. I understand. Can you comment on the impact, if any, of the recently announced tariffs on EVs and lithium batteries? I'm sorry, Steve, you are a little bit skipping. Can you- Repeat your question. Sure. Can Mr. Hu comment on the impact, if any, of the recently announced tariffs on EVs- Oh。 and lithium batteries that was recently announced? OK，他说胡总能不能就是，讲一下，就是刚刚美国宣布的对中国的电动汽车和锂电池征收关税的这件事情，你能不能说说你的想法和公司有什么策略？ 首先，我们公司的 golf 球跨界车，因为我们现在78%都是 golf 球跨界车，那么，这个呢，是不受影响的，不在这个范围之内。那么，我们的锂电池呢，原来是7.5，现在已经...... Now, it's set to 25, so this 25, no big problem, we will lower costs and other aspects' ways to cope. Regarding that farmer car, now it's included in that electric vehicle category, so this one, it is, this one doesn't know when it starts, wait, next week announce this specific time, but we have sufficient preparation. The 100% tariff's impact, electric vehicle U, uh, UTV's products, we will consider adopting CKD's way to prepare production in the United States. So first of all, our golf cart products, which is one of the major revenue streams right now, is not under the scope of the electric vehicles, so that's the 100% tariff will not impact, you know, the sales of our golf cart product. Secondly, the tariff of our lithium batteries has increased from 7.5% to 25%. We will try to respond by, you know, reducing the cost and some other expense cutting in order to make our products being the same, you know, competitive. Finally, as for the UTV products, you know, even though the tariff has not been pronounced yet at the moment, that we will consider using the CKD approach to produce and manufacture the electric UTV products in the United States, in order to avoid the tariff impact. I hope I can address your question. Thank you. Thank you. And then the picture that Twitter, on Twitter that Kandi America put up so on their site, it showed Kandi America folks posing with the mayor of Laredo, Texas, with other locals in the middle of this field, got my curiosity. Why did Kandi America post that image, and what should we take from it? Can you repeat? The picture with who? Sure. There was a, the Twitter, Kandi America- Uh-huh. They posted an image of Kandi America folks posing with the mayor of Laredo, Texas. Okay. With other local officials. Okay, okay. Okay, I got you. Well, actually, it just for us to explore the opportunities and possibilities, and currently there's no very many concrete development for now. Okay, and my last quick question- Update with the development. Okay, and my last quick question is, this sounds odd: Who currently is the CEO of Kandi America? Uh, The CEO of Kandi America is Johnny Tai, and I believe that such information is also disclosed online on our website. Okay, thank you. Yeah, the Barry Golf Cars had put out a press release and had referred to someone else. Thank you very much for your responses. Appreciate it. Thank you. Thank you. Our next question is from Terry McLemore, with McLemore & Associates. Please proceed. Yes, thank you. Two quick questions. First one is, can you give us an update on sales that are international, such as the retailers internationally, that we're selling our golf carts through? That's the first question. And then the second question, can you give us guidance for the rest of 2024? And I know I'm just asking for a best guess here, and maybe also for the calendar year 2025. Thank you. Hang on. Let's go one by one. Your first question is? Yeah. International sales, who the retailers are, what percentage? International sales? International. International sales? Yes. Okay. Um, Currently, we are trying to expand our sales to the regions such as Southeast Asia and then the European regions. However, the scale is not big, but we are trying to expand down the road. No names that you can give us on that? As for the sales to those regions we just mentioned about earlier, actually, we deal with them through the trading companies and agencies in China, so we don't really work with those channels directly. Okay. Well then, can you give me any kind of guidance, best guess guidance for the rest of 2024 and 2025? I know last year you had talked about maybe doing $500 million in sales in 2025, but that may be a stretch at this point. ... Next question, can you tell us about the forecast for sales revenue in 2024, as well as 2025? In the previous conference call, you once said that our goal is to reach $500 million in 2025. Yes, $500 million. Is this goal still a realistic goal that can be achieved? 2024肯定会比去年好，那么2025这个仍然是我们的目标，我们将努力争取实现。 We believe that the total sales of the whole annual fiscal year 2024 will be better compared to last year. As for the, you know, the target for the 2025, we still try to aim the target to be $500 million, and we are trying very hard to achieve such goal. Thank you. Okay, all right. Thank you very much. Thank you. Our next question is from Fred Bratcher with Concorde Investment Services. Please proceed. Thank you. Last week, Kandi America gave a peek on its homepage and Twitter page under golf carts of the new $9,900 Kandi Smile. Similar, by the way, to a modern-looking Kandi Coco. What markets do you anticipate this new Kandi will attract? And how big a market do you expect this vehicle to grow in both golf and LSEV configuration? I have another question after that. Thank you. OK，这个问题是关于上个星期Kandi America在Twitter上面展示一款，叫Kandy Smile的一款新车，价格为$9,900。这个外观非常神似Kandi Coco。你能不能介绍一下这款车它的一些数据，然后你觉得这辆车将是销售，针对什么市场销售？它的这个接下来的计划，销售计划是什么？ 这款车是我们，一款新的敞篷车，是还是推到我们定位是高尔夫球跨界车，还是供给休闲市场用的。那么，各种性能呢，我们在网站上，在ACC，那个SC的网站上都会有，具体体现在我报还真报不出来，请大家到网站上去看各种数据。谢谢。 So first of all, this is a new, you know, type of a product. It's in convertible format, and it is really meant for recreational usage, as you know, crossover golf carts utilization. For further specs and other details of the product, you may refer and stay tuned to the information to be disclosed on our website. Thank you. Okay, thank you. Also, are there other legacy vehicles such as Coco that can be resurrected to as new generation EVs over the next few years? 我就想问，那公司的一些经典的老款，比如，就类似像Kandi Coco这样的车，是否会进行调整改观，再来重新升级到其他的电动车。 我们在UTV、ATV、高尔卡等车型上都已经开发出新的存。过去因为都是汽油车，这个燃油车，现在都重新开发，变成纯电动的车辆，目前也在逐步地向市场推出这些产品。 Ongoing, we will primarily focus on our newly developed pure electric vehicles in the categories such as the golf carts, ATV and UTV. Okay, thank you. Thank you。 A quick question: any intention to keep buying Kandi shares? You mean for the company? Buy back- Yeah. continued buyback shares? Okay. Yeah。 最后一个问题，就是康迪是否会继续地回购股票？ 我们还在继续的回购。 Correct, we will continue to do so, to repurchase the shares of Kandi. Thank you. Okay. Thank you very much. Our next question is from Arthur Porcari with Corporate Strategies. Please proceed. Thank you. Well, aside from the awesome news about the Lowe's NFL Kandi collaboration announced today, what, if any, new breaking news products surprises does Kandi have for us for this year that we don't already know about? On the last conference call, no less than three times when criticized by shareholders for not sharing news on new products through press releases, and also questioned about why Kandi doesn't follow the current trends, reporting both GAAP and non-GAAP numbers, as most analysts prefer. We were told all this would be taken into future consideration... In each case, management reiterated that it could and would do better in the future. However, not only has it not done better in putting out breaking news, but it's also now extended the time since the last breaking news PR to over six months. The last breaking news PR on Kandi, actually put out by corporate, was the NASDAQ news retrieval. On the NASDAQ if you go to the NASDAQ news retrieval service, you'll see was titled: Kandi Technologies Board Authorizes Stock Repurchase. Though I must admit, the Kandi NFL announcement today was certainly breaking news and is much appreciated. Go ahead and pass that on, if you would, please. OK，这个问题呢，他是说，康迪，看到康迪今天的消息里面有爆炸性的这个信息，关于就是Lowe's这个合作，有康迪还有什么就是惊喜，我们不知道的，他想问。他在上一次电话会议上呢，就是，股东至少有3次，就是，提出意见，说公司管理层没有分享新的产品发布信息，而且质疑，为什么康迪不像大多数分析师偏好那样去同时报告，美国就是GAAP的通用会计准则的数据，以及，非通用会计准则的数字。在每一种情况 下呢，管理层都重申他们能够并且会做得更好。然而呢，公司并没有实现自己的承诺，并没有发布各种利好的新闻，在这方面也没有改进。我看了一下，就是在纳斯达克上面，上一次新闻要通过就是，历史性的新闻，在2023年11月27号，是公司的上一篇新闻，标题是康迪科技董事会授权股票回购计划。也就是说，康迪已经很长时间没有对公司的进展发布公告了。Continue, please. Since the last November PR, Kandi's expanded its currently available products from the original single Coleman model to now more than a dozen conventional golf/LSEV carts, plus new patented Mini and midi-sized carts, along with at least two UTVs, a $3,000 go-kart, and three high-end e-bikes. That's only locations and products that shareholders have found from the retailer's own ads on the Internet, with no help from the Kandi IR department. New products and locations were only discovered through internet searches of sponsored ads. As witnessed by the current stock price, which has in the past traded at over $20 a share on little cash and a third of current revenues, management has lost a lot amount, a large amount of respect on Wall Street from its current and past shareholders, due to the lack of giving updated information. For example, Kandi's added Walmart in Q4 2023, with potentially 4,400 outlets, Camping World 2,200 outlets, that's a New York Stock Exchange company, Costco Canada, approximately 190 potential outlets, Peavey Corp 290 outlets, and Rural King 190 outlets. Go ahead and read that to him. And Kandi, actually, has added many of these new models, and these models, the company has not disclosed, we all saw them from the website through searching. And the company's current stock has also dropped to $2, that makes the company also continuously down, that is, the stock value owned by the company is also continuously declining. And, we see that the company besides owning, in Lowe's, many stores outside, in Q4 2023 also added, for example, has a partnership with Walmart owning 4,400 stores, then also 200 Campers World, this is also a NYSE-listed company, then Costco, these. Go ahead, continue. This despite its brilliant redefining of its conversion from EV autos to electric off-road business model into a primary player in the specially potential $1 trillion electric space. Actually, more than incredible, considering it's been less than two years since Kandi introduced that first single golf cart and is already positioned in the top five in North America and growing internationally. Shareholders are upset due to seemingly indifference by management and promises with competing, or should I say, not cared about competing for new Wall Street investors. The fact is that based on year-end 2023 five-year record results, Kandi is by far the most fundamentally undervalued and profitable NASDAQ-listed stock, now trading at a 30% discount to its $2.90 cash, 60% discount to its book value, and 35% discount to its net working capital. My questions... Go ahead and read that, and I'll hit you with the questions. OK，公司这么一系列，公司，在这非公路车上面其实取得了很杰出的表现，实际上就是，自从康迪开始推出首款高尔夫球车，才不到两年时间，就跻身北美前五的事实，这些都是很难置信的。但是呢，就是股东对管理层，就是能怎么做到能吸引华尔街投资，投资者的表现，非常的感到不满。啊，根据2023年康迪的年终财报，康迪是当前纳斯达克上市公司中，最被低估的盈利股票，其交易价格呢，对于，$2.9的现金价值有超过30%的折扣。... Compared to book value, there is a 60% discount, compared to net working capital, there is a 35% discount. Then I have the following question. Go ahead. Okay, here's, I got four questions here and, and a couple of just add-ons. Does management who currently own only 17% of Kandi's stock feel any concern at all that some Chinese entity could come make a buyout tender offer at double the current $2.30 price, and still end up buying Kandi, the whole company, at a discount to its $5 a share book value? And additionally accomplish most of its heavy lifting by using Kandi's own $2.90 a share cash to steal back control? Ah, I want to ask, Kandi's management now only holds 17% of Kandi's shares, so is there concern that some Chinese entity might initiate an acquisition of the company at twice the current $2.3 price? Actually, even at such double, per share it's also below $5 book value, can buy the entire company, um, is there concern in this aspect? In addition, is it mainly using Kandi, uh, its own $2.9 per share cash to complete this control rights transaction. 非常感谢你的关心和提醒啊，我们会认真评估和采取相应的措施来规避这样的风险。 So thank you very much for your concern and reminder. We will carefully evaluate and take appropriate measures to avoid such risk. Thank you. Okay, that's not much of an answer, but let's go on to the next question. Why is management wasting shareholder value by paying for three different IR groups each month, but not taking the good advice that I'm sure each has at times offered? And if that's not true, they haven't offered that, then that's a good reason to fire them all. Pass that one on. 这个 问题 是 ， 他说 刚才 你 的 回答 没有 提供 什么 问题 ， 但是 我们 问 下 一个 问题 ， 为什么 管理 层 在 浪费 股东 的 ， 股东 价值 ， 支付 三 个 不同 的 IR 团队 的 费用 ， 而 又 却 不 接受 他们 有 时 提供 的 ， 价值 的 建议 ？ 那 如果 ， 如果 是 ， 如果 事实 并非 如此 的 话 ， 那 ， 你 ， 你 就 更 有 理由 去 解雇 这 ， 他们 所有 人 。 那，你说的三个IR团队，这个我不知道是谁啊，但我们目前只聘请了Blueshirt的一个，这个IR团队。鉴于公司处，前这两年的啊，公司处于一个战略调整期，我们还是秉承少说多做的理念，随着我们战略调整的逐步形成，接下来我们会做出积极的调整。 Currently, we only employ one IR firm that is the Blueshirt Group. Actually we don't have three separate IR teams. Because currently, company is in a period of strategic adjustments to be more focused on the golf cart, auto, auto vehicles in the U.S. market. We still adhere to the idea that just to do more and talk less. As our strategic adjustment gradually take shape, we will be more proactive in making the related adjustments in our pronouncement and IR approach. Thank you. Actually, I think you do. Well, you certainly have two, if not three, because Kandi America seems to use a trade IR group, and sometimes that pops up as press releases, but most of the time doesn't, as far as Wall Street, news services are concerned. Pass that on just as a response. You should have it, right? At least I've seen some occasional news coming out when Kandi America has it. I've seen one called, You said American Trade? Is it the name of the IR? I don't know. Whatever, there's an IR firm that Kandi America uses. 他说，我也不知道是什么名字。是康迪美国有的，有的时候他发出的报道能看到他们也有一个自己的IR。 那是他们自己的团队，应该是，我们没有请。Next, Alan。 Um- Hello。 We believe that there are some separate IR team. We work in a contract basis for U.S. entities. But you know, in the group level, we employ one IR firm that takes care of our, you know, public information and investor relations purpose. Well, I just find it hard to believe that with everything good that's going on after 15 years with Kandi now, where we used to do 40 press releases a year, now we're doing almost none when it comes to breaking news. And I think it has to do with the splitting up of the IR responsibilities. It seems like the parent company should be the one to put out the IR. Just an opinion. Pass that on please. 我只是觉得就是难以相信，就是公司现在的这些，这种策略，以前的的时候，康迪非常非常的活跃，一年会有40篇公告，而现在，相对于这种对公司业务的公告几乎没有。我只是觉得公司应该要，要...... 就是把这个IR的这个重心呢，放在公司总部，很多新闻应该是由上市公司康迪来发出的，就是整合这种IR和投资，就是市场推广的，这方面的努力。 这个放心吧，接下来你看就会有很多这些信息了。我们已经做了调整。 Yeah, I think we will do the related adjustments on the road, and you will see the results ongoing. Thank you. Okay, on to my rest of my questions. Several years ago, management promised shareholders that once Kandi had a predictable growing revenue stream, the company would start giving revenue and earnings guidance, mandatory to attract analysts and institutions, particularly in this competitive stock market. Over the past three years, despite a much stronger balance sheet, Kandi's institutional holdings has dropped from a peak of 15% to 3.6%. Can management give any reason why it refuses to confirm to the Wall Street desire for guidance and also non-GAAP in addition to GAAP numbers, as it did in the last two quarters, I'm sorry, as it did in the last two years of the prior CFO's term? 几年前，管理层有承诺说，一旦康迪拥有可预测收入增长之后，他们就会开始提供收入和利润的预测，这也是吸引分析师和机构投资者的必要条件。特别是在这个竞争激烈的市场中，尽管过去3年康迪的财务状况大为改善，但康迪的机构持股比例，也从最高的15%下降到了3.6%。管理层能否解释为什么除了我们的GAAP之外，拒绝遵循更受华尔街青睐的非GAAP的方式来呈现公司的业务。而且，就说在两年前，公司之前的CFO，当时也有尝试着提供财务预测的。 也非常感谢你的建议，我们会进一步评估你的建议。 Thank you for your suggestions, we'll further evaluate and comply with your suggestions and opinions and implement, you know, procedures. Thank you. last conference call, saw a response from Mr. Hu that some management would be considered personally buying back shares in the open market, as they did three years ago, when they paid more than double the current price personally, and at the time, cash in the bank was but a fraction where it is today. Open market company's share buybacks are appreciated, but due to Kandi's low daily volume, the 20% average volume maximum number of shares that can be purchased under the current 10b5-1 plan has been limited to maybe 15,000 or 20,000 shares per day. Why doesn't the company just make a straight $3.50 a share tender offer for at least 10 million shares of stock, which would only use 15% of its cash? I doubt it would be fully subscribed due to the stock quickly jumping above that price once shareholders realize management is serious about increasing shareholder value. Most importantly, such an action by an EV related company in this specific market would get a lot of attention that one could not afford to pay for. OK, pass that on. Last conference call, Mr. Hu indicated that some management might consider, like the first three years, that way on the open market to repurchase shares. At that time the price was more than two times the current price, and at that time the cash in the bank was only a small portion compared to now. The company repurchasing shares on the open market although very welcome, but Kandi's daily trading volume is very low. According to the 10b5-1 plan, the average daily number of shares that can be bought is limited to approximately 20,000 shares. So why cannot the company directly initiate to at least buy 10 million shares, equivalent to only using 15% of the cash, and then acquire at a price of $3.50? Moreover, I suspect that actually this tender offer will not be completely accepted, because once shareholders realize that management is really making efforts to increase shareholder value, the stock price may soar and exceed the $3.50 price given. Most importantly, for a company related to the electric vehicle industry, such actions will very much receive the market's attention. This is a promotional effect that money cannot buy. 谢谢你的建议，我们根据你的建议进行评估。 Thank you for your suggestions, and we appreciate that. We'll take it into consideration and evaluate, and react properly. Thank you. well, that ends my formal questions that I had for you, but I have just a few questions on what was recently announced today and what we've said on the conference call. I might add that, as I addressed earlier in my comments, we keep getting this same thing. We'll take under consideration, take under consideration. We've been hearing that for years now, but go ahead and pass that on, and I'm go on to some follow up some news that just came out. ...他说我还有些问题，但是，我就想，强调一下，就是在，在这些电话会议，在我们开展电话会议上面，我们提出的很多建议，公司总是一个应付的回答说我们会考虑，我们会考虑。我们听到这样的回复已经，不断听到这样的回复，已经很多年了。我接下来有几个其他相对的问题要问管理层。Continue please。 OK, now these are just some follow up. So what's been said regarding the Lowe's 500 stores. I've told personally I'm not down in my Houston area at least three Lowe's stores, and two of them I've actually know the managers in that department. And they were under the impression that Lowe's had all 2,500 stores or twenty whatever it is, all 2,400 stores available to be, you know, buying Kandi's products. But I guess it's good news if we've been doing what we have with only 500 stores. And I can't believe that this NFL thing that we're doing now isn't going to probably expand to almost all the stores. Pass that on. I just heard that the company said now it has already cooperated with 500 stores of Lowe's. From where I am in Texas, I have gone to three stores on site to examine. I have chatted with the managers of these three stores. According to them, Lowe's 2,500 stores or 2,000, I don't know the specific number, but so many more than 2,000 stores, all can sell Kandi's products. Of course, very happy to hear Kandi now such practice, and now with NFL's such cooperation, also very exciting. Please continue. Well, that was actually a question, but okay. What's the question you said? Well, that was, that was a question I had specifically about that subject that I was talking about, about the 500 stores, if they had any further comment—they probably don't have any further comment on that. But anyway, that's just what I've heard from the Lowe's managers. Okay, this one's interesting. You know, I've said over the past few years, I chiding the company into how soon they think they would be able to pass Polaris. I think Mr. Hu even made a comment on that a few years ago once we got involved in this industry. But what fascinates me is the missing link to Polaris is water sports. Today's press release actually mentioned we're getting into water sports, so I'd like more explanation what that's all about. I'm sorry, can you repeat your question one more time? what I'm saying is, is that in the past, I had chided management by kiddingly asking them how soon they could pass Polaris in this off-road vehicle industry. But the missing link at that time to Polaris is Polaris is well known also for its water sports. So my question is, today's press release specifically mentioned water sports as being a new product line they're getting into. Can you expand more on what that water sports is about? OK, OK。在很久以前呢，我跟管理层对话的时候呢，管理层有提到过美国的这个北极星 Polaris 这个公司，然后我们很兴奋看到今天的，这个，新闻里面也提到，我们现在会增加一些水上产品，那现在，公司管理层对就是以后要跟，这个北极星竞争，甚至要超过他们，你有什么样的... 可以，可以表述的，可以跟我们分享的？ So first of all, we try to focus on our own development of the new products, especially, the electric, you know, the pure electric, you know, off-road and then the water sports, you know, our products, we try not to compete with anyone, but try to focus on our own, you know, development. As for the water sports, primarily now in the market, you may see the sports yacht or the fishing yacht. They are running in the gas, which is noisy, and they will hurt the fishing, you know, the ambience. So we try to research and development into the new products of the pure electric water sports product, and hopefully we can have more update to share when we have more concrete development. Are we talking Wave Runners here like Polaris has? Or are we just talking like motors for, electric motors for fishing boats? What are we specifically talking about in water sports? Or both? 他说能不能具体讲一下我们所说的……Alan，请你翻译一下，这个我不知道他说的是哪，就北极星哪一，哪一款产品，他指的是。……Alan。 啊，给我。 哎，我说请您翻译一下他刚刚问的这个，他说，他，他指的是我们指，他想问的是我们指的，我们，我们说的产品。 水上的，那些产品是哪一种？比如说是钓鱼的，还是那些个人的小艇，还是快艇等等，或许那些比较大型的，您有什么一些想法吗，目前。 目前我们正在开发的是钓鱼船，一种，还有一种个人的单人的快艇。 纯电动的。 纯电动的，我们所开发的是纯电动的钓鱼船和单人的快艇，运动的。 So, currently we are focus in the developing those are the water sports in rather small scale, like the fishing boat or the yacht for individual, you know, one man, you know, yacht kind of scale of the product. That's our, you know, category of the, R&D right now. I assume you mean by one man yacht, wave runners or, Jet Skis? Yeah, rather Jet Ski kind of style. Oh, that's great! It's super. OK. 他说这个Jet Ski是那种意思吧，是那种快艇，就是骑，是不是骑在上面跑得很快的那种。叫什么？他说的叫什么什么什么runner。 就是类似水上电动车了，是吧，类似这样子嘛，侯总。 我不知道这个，所以我想确保一下，我们不要回答错了。请问一下好不好，我- 我们不是歧视的。 但他说，他说的那种，Alan是指骑的那种吗？那种快艇嘛。 哎，Alan，你把我刚才说的话都翻译过去了，翻准了吗？他可能没，你没翻译清楚吧。因为我们生产的是个人快艇，就坐在里面的新品种，我不是绑人家的，是我们创新的东西，纯电动的。 他的问题是比方说，那种一人的，就类似，因为现在市场上 一人的类似是那种，比方说，类似水上电动车的款式。 摩托艇那个是，这个，这个叫摩托艇，我们是叫快艇。我们快艇是整个人坐在里面。呃，他说的这个是摩托艇，摩托艇是骑在上面。 是 。 两码事，我们是创新产品，跟那些都不搭边的。 So, to be more specific, that's the jet ski mention. That's the comments that we have in the market. But what we try to do is, rather, not the jet ski, but rather is like kind of the speed boat or the yacht kind of things, so we can actually sit in there, but that's only for one person size. Is it clear? So it's not really jet ski, but rather the style, the boat or the speed boat kind of thing. OK。 But for only one person capacity. Well, that would sounds like a whole new product line, that probably- Indeed, yeah, that's the new product that we try to innovate. You know, to put and for the market. Correct. That's from the new style, other than the common, you know, water sports product in the market right now. It would probably be a patented situation like the mini was, that you released earlier this year. 他说，如果开始的话，我们是不是也会接触到那个pa，就是得有这个专利啊，对不对？ 那这个都有我们自己的专利。 That will be our own patent, our own patent. Another one of our own patents. OK, I'm just about done here. You know, the potential is NFL collaboration to me is just incredible. You know, I can't imagine, maybe you should take off a six-passenger golf cart and whack off the back seat in it, and put a barbecue grill back there. You know, it's people like, like doing that type of stuff at the sports events in the United States over here. But anyway, that's just a comment. So let's see here. Well, I guess the highlight of this was I'm glad to hear that the, that 2025 estimate of $500 million is still a target of Kandi, uh... Sorry about this, it's still. I'm sorry about the phone ringing over here. Anyway, as I said, I think that the $500 million 2025 number should make a dramatic difference in the stock price if we can just get the story out. Oh, one last question too. You've mentioned that you're already in 10 more, 10, 10 big box chains already, if I understood earlier, correct? We only know about 5, at least that I'm aware of. So at some point in time, will we be disclosed to the other five are? OK，他刚刚说了这么多，他主要先说，他说他非常高兴，看到我们跟 NFL 和 Lowe's 合作，他也许我们可以把我们的那个就是高尔夫车的那种七人座的后面两，一排呢把它去掉，上面可以放个那种就是烤箱。他因为在美国这种运动的，运动的活动呢，很多人是喜欢，就是开出去，大家一起搞烧烤什么的。这只是我的一个意见。另外呢，他也很高兴听到公司重申对 2025 年 $500 million 收入的，这个预测。这个他觉得是会很，会帮助到股票的，就是在，对，对我们股票的-... 股票的关注和股票的增长，股价的增长。然后最后一个问题呢，他说听到就是公司现在已经，就是跟，有10个大型的超市连锁的在合作，那我所知道的，从公司，披露，直接间接披露的有5家，那另外的公司有打算陆续披露出来吗？ 我们应该都已经开始合作了，其实在SC网站上都能看到跟谁合作，因为它这个有大有小，我们这两个Lowe's、Costco，这个我们当然单独披露，但是那个小的呢，我们就不一定披露。但是今后，因为过去我们是小规模多做嘛，今后就每次这样，包括经销商的增加什么，我们都会披露，这个披露的以后会很频繁吧，也会很详细。 You know, for now, we actually start working with those 10 different, more than 10 different, the retail partners at the moment, but then the, their, the scale may vary. Some are larger, some are rather, relatively smaller. So we try not to disclose one by one, but actually on our Kandi America website, you can still see it, on the vendor list, I mean on the channel list. So, you know, for information, please check our website, and down the road, we will try to disclose such information like the third channel, the retail partners we have, more frequently and in more details. Thank you. Okay, well, thank you very much. A little bit disappointed in the revenues this quarter, but you've done a big expansion, and there's a lot involved in getting this stuff to roll out. But this NFL thing sticks in my mind as being something very huge for this, for the latter part of this year and the future years. But other than that, pretty good job. Thank you. 他说，谢谢你回答我的问题。这个季度虽然，销售收入上面有一点点失望，但是呢，公司的幅度的大扩张是很令人兴奋的，特别是NFL这件事，我觉得是，是很有潜力的。谢谢。 There are no further questions at this time. I would like to turn the conference back over to management for closing remarks. Thank you again for joining today's conference call. If you have any further questions, please don't hesitate to contact our IR Blueshirt, gary@blueshirtgroup.com, or you can contact us directly 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.