Greetings. Welcome to Kandi Technologies Second Quarter 2024 Financial Results Call. This time, all participants are in 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 from your telephone keypad. Please note, this conference is being recorded. At this time, I'll now turn the conference over to Kewa Luo. Kewa, you may begin. Thank you. Hello, everyone. Thank you all for joining us today's conference call to discuss Kandi's results for the second quarter, twenty twenty-four. Earlier today, we issued a press release covering the results. You can find the press release from the Newswire Services. 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 nineteen ninety-five. 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 des not assume any obligation to update any forward-looking statements, except as required under applicable law. Additionally, unless otherwise stated, all figures mentioned during the conference call are in U.S. dollars. Before we continue, I would like to introduce the team joining me on today's call. We have Mr. Xiaoming Hu, Chairman of the Board, Dr. Xueqing Dong, Chief Executive Officer, Mr. Alan Lim, Chief Financial Officer, and for the first time on our call, Mr. Johnny Tai, CEO of Kandi America, and Mr. Olin Rice, CEO of Northern Group. Dr. Dong will deliver his prepared remarks in Chinese, which I will then translate. Following that, we will have a Q&A session with Chairman Hu, Johnny, and Olin, and the CEO to answer. Now, let us start with brief greetings from each of our executives. Uh, Hello, this is Hu Xiaoming. Thank you for joining us today. Hello, everyone. I'm Xueqing Dong. I'm pleased to share our progress with you shortly today. Good morning, everyone, and hello, everyone. This is Alan Lim. Thank you for joining us. Hi, everyone, it's Johnny. Good to be here with you. Good morning, everyone. This is Olin, and I'm excited to join the discussion today for the very first time. Thanks, everyone. With that, let me now turn the call over to our CEO, Dr. Xueqing Dong, to share our Q2 performance. Dr. Dong, please go ahead. Again, welcome to today's conference call. We are pleased to report that Kandi Technologies continued its strong growth trajectory in the second quarter of 2024. We achieved total revenue of $39.1 million, up 8.9% from $36 million in the same period of 2023. The primary growth driver was all, was our all-electric off-road vehicles and associated parts, with sales revenue increasing by 11.3% to $34.7 million. We made significant progress in our U.S. market expansion, with the launch of new product lines, injecting new energy into the market. Additionally, through our exclusive partnership with Lowe's, the officially licensed NFL team golf carts will be launched in the U.S., starting from the end of August. This showcases our innovation and offers fans an eco-friendly way to show their team pride. ... In addition, we actively executed the stock repurchase plan, repurchased 673,896 shares of stock, at an average price of $2.25 per share. This measure reflects our confidence in the company's future development, and indicates our firm commitment to enhancing shareholder value. Kewa Luo. Our financial position remains strong, with cash and cash equivalents, restricted cash, short term investments and certificates of deposit totaling $219.6 million as of June 30, 2024. We actively executed our share repurchase program, buying back 673,896 shares at an average price of $2.25 per share, reflecting our confidence in the Company's future and our commitment to enhancing shareholder value. 在全球扩展方面，我们取得了显著进展。E10K纯电动UTV获得了EEC认证，为进入欧盟市场铺平了道路。同时，我们在亚洲也开拓了Kandi产品的市场，进一步扩大了我们的国际市场份额。展望未来，我们将继续专注 于扩展我们的产品组合和市场布局，特别是在美国和欧洲市场的进一步扩展，并通过持续的产品创新和市场拓展来驱动未来的增长。谢谢，Kewa。 On the global front, we made significant strides, including securing EEC certification for our 10K all-electric UTV, paving the way for entry into the European Union market. In parallel, we have also opened up new markets for Kandi products in Asia, further expanding our international market share. Looking ahead, we remain focused on expanding our product portfolio and market presence, particularly in the U.S. and European markets, driving future growth through continued product innovation and market expansion. So now we begin the Q&A session. I and Chairman Xiaoming Hu, as well as Johnny, CEO of Kandi America, and Olin, CEO of Northern Group, will answer the questions raised by everyone together. Kewa and Mr. Jianm ing Lim will provide translations for the English questions. Okay, please everyone begin asking questions. Now, we will move on to the Q&A session together with Chairman Xiaoming Hu, Johnny Tai, CEO of Kandi America, and Olin Rice, CEO of Northern Group. I will answer your questions. Miss Kewa Luo and Mr. Alan Lim will provide translation for English questions. Please go ahead and ask your questions. Operator, please go ahead. Thank you. If you'd like to ask a question at this time, please press star one on your telephone keypad and a confirmation tone indicate your line is in the question queue. You may press star two if you'd 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. One moment please, while we pull for questions. Once again, that is star one. Thank you. Thank you. And our first question will be from the line of Joel Cramer with Private Investor. Please proceed with your question. Thank you. This is regarding new products. On the Q1PR, the CEO stated, "Moving forward, we will launch new starter batteries, as well as a variety of more competitive all-electric off-road vehicle products and electric water sports products." Also, from a press release, we learned of Kandi now selling its own branded lithium double A rechargeable batteries. Go ahead, Kewa. Thank you. 这个问 题 是 关 于 新 产 品 ， 在 上 个 季 度 第 一 季 度 的 新 闻 稿 中 呢 ， 当 时 CEO 有 这 样 说 到 ： 展 望 未 来 ， 我 们 将 推 出 启 动 电 池 以 及 各 种 具 竞 争 力 的 纯 电 动 非 公 路 车 辆 产 品 和 电 动 的 水 上 运 动 产 品 。 此 外 呢 ， 从 新 闻 稿 中 也 了 解 到 ， 康 迪 现 在 正 在 销 售 其 自 有 品 牌 的 锂 充 电 ， AA 电 池 。 而 从 一 篇 外 部 的 文 章 中 ， 我 们 还 看 到 康 迪 推 出 并 列 E10K Cowboy 的 第 二 个 版 本 ， 名 为 Innovator E10K， 以 及 一 款 销 售 价 为 $19,000 的 新 电 动 非 公 路 车 。 Lucky. Go ahead. And from an outside article, we now see that a second version of the side-by-side E10K Cowboy, called the Innovator E10K, along with the new $19,000 electric off-road vehicle called the Lucky T9. A few questions I have to ask. First, could you please explain what starter batteries are and how big the market could be? Go ahead. 他第一个问题呢，是，您能否解释一下什么是启动电池，然后他们的市场规模能有多大？ 这个启动电池指的是用于车辆启动的专用电池，那么它的市场规模的话，根据网络上提供的一些信息，那么二零二三年全球汽车启动电池市场的销售额达到了1636亿元人民币。...预计到二零三零年将达到2059亿元人民币，那么年复合增长率约为3%，3.3%。好，谢谢。 Okay, the starter battery refers to the particular battery used to start a vehicle. We are still in the rather early stage of the R&D, and we are conducting the market research. According to the information available, the global automotive starter battery market sales reach CNY 163 billion in 2023, and is expected to reach CNY 206 billion by 2030, with a compound annual growth rate of roughly 3.3%. Thank you. The next two other questions: What would be the competitive all-electric off-road vehicle and the water sports product from the press release? And will Kandi soon be offering AAA along with the AA lithium batteries? And can these batteries use any size-compatible charger, or must it be a specific branded charger, Kandi charger? Okay. Go ahead. 下面两个问题，他是问，就是新闻当中你提到的具有竞争力的纯电动非公路车辆和水上运动产品，具体指的是什么？另外就是康迪是否会推出，就是三A锂电池跟，双A锂电池一起推出，然后这些电池是否可以使用，就是任何其他品牌兼容的充电器，还是只能够使用康迪品牌的专用充电器才能充电。 好，这两个问题，我先回答第一个。那么我们新闻稿中提到的具有竞争力的纯电动非公路车辆，指的是我们，新一代的UTV、ATV、Go-Kart和高尔夫球车，等系列车型。那么我们指的水上运动产品，指的是一种创新性的，单人电动卡丁船，相关产品。这第一个问题。那么第二个问题，关于这个AA电池和AAA锂电池的。那么我们推出的AA电池，是为了测试美国市场的一个可行性，那么目前我们取得了一些初步的成功，今后将考虑要推出，AAA电池。那么至于何时推出AAA电池，那么我们要看，现在AA电池在市场中的表现。那么我们目前的AA电池，是可以兼容其他充电器的，并不局限于康迪品牌的充电器。好，谢谢。 Oh, so first of all, let me answer the first questions. You know, the models you mentioned, those are related to our upcoming products in the future that we are still under development. We are expanding into the UTV and water sports category, and there will be more product description and details in the future. The so-called competitive pure electric off-highway vehicles mentioned in the press release refers to the new generation of like the UTV, ATV, Go-Kart, and the golf cart models. Whereas the water sports products refer to the innovative single-passenger electric jet ski. And then as for the second questions, so basically we launched the AA batteries to test the feasibility of the U.S. market. We have some initial success, and we consider launching the AAA batteries in the future. As for when to launch the AAA batteries, it depends on how well the AA, you know, batteries performs in the market. Our AA batteries are compatible with other chargers, and they are not limited to only the Kandi branded chargers or vehicles. Thank you. Thank you. And the next questions: What is the difference between the E10K Innovator and the E10K Cowboy? And when would you expect them to be cleared for sale in Texas? As a high-end of Kandi's products at $19,000, what market does the Lucky T9 address? And lastly, several years ago, Kandi had a nine-tenths scale gas trike motorcycle, very similar to the Polaris Spyder, two wheels in the front, one in the back. It would seem that it could be a big seller for older biker wannabes. Any thoughts about Kandi bringing an electric trike version out? And any new vehicles expected to be released this year? Go ahead. 接下来这个 问题 ， 他 是 问 E10K 的 Innovator 和 E10K 的 Cowboy 之间 有什么 区别 ？ 你 预计 就是 这 两 款 车 什么 时候 能 在 Texas 获得 销售 许可 ， 开始 销售 。 下一个 问题 呢 ， 就 说 作为 Kandi 的 高端 车 ， Lucky T9 ， 就是 这 款 车... I'm sorry, can you repeat your second question about Lucky T9? Yeah, the gas trike. Is that you had that years ago in your line, it was similar to the Polaris Spyder? No, no, the second question, the second question you said as the high-end vehicle, Lucky- Oh, uh- T9. Yeah, high-end Canadian products at $19,000. What market does the Lucky T9 address? Okay, thank you. 说话了，Lucky T9，这款车卖一万九千，您觉得这个车的针对的市场是什么样的市场？然后最后一个问题呢，就是说在，很多年前康迪有一款90，90比利的燃三轮摩托车，这辆车呢，与Polaris北极星Spyder非常相似。你认为推出这款三轮，三轮版的车型否会有，骑行爱好者的这种销售品？你对此车有什么计划？ 我先回答一下，第一个问题。这个，从那个产品规格的角度看，Innovator 和 Cowboy，两个 UTV 是同等产品，那么这两款车型主要是在造型上的区别，然后目标的客户群不同。Innovator 拥有更时尚的外观，常常会吸引社区的眼光，那么 Cowboy 的户外风格更加粗犷，专为猎人和越野车用户量身打造。那么我们的目标是为各种零售细分市场，开辟道路。那么另外，Cowboy 主要是在 Lowe's 中销售，那么 Innovator 近期会投放到了 Costco 中销售。好，谢谢。 So as for the question between the Innovator and Cowboy, from the product specification perspective, they are pretty much on the same tier. It's just the two models, they have different styling or outlook, and in order to target different customer groups, and that's pretty much the crux of it. The Innovator, as you may know, has a more fashionable appearance and tends to attract the community with the better outlook. Whereas the Cowboy has a more outdoor style and is tailored, you know, for hunters and off-road vehicle users. Our goal is to expand the markets for various retail sectors. In addition, Cowboy is mainly sold in Lowe's, whereas the Innovator will be sold in Costco in the near future. Thank you. 那科王，第二个问题，你再复述一下。 他的第二个问题就是说我们的那款高端车，Lucky T9，这款车，卖好像是一万九，他说，他问这款车，是针对什么样的销售市场，什么样的人群。 那么这个T9呢，我们的T9呢，是一款，运动型的那个沙滩车，我们在早期，早期的的时候就获得了一些比较积极的评价，那我们对市场的反应也感到兴奋的。那么T9这一款呢，是一个，运动型的，一个沙滩车，我想它针对的一些这个市场的用户，主要是偏向于运动的，然后是越野的这一类的，环境和一些，用户爱好者。谢谢。 So, this product, T9, as you may know, is an outdoor sports trike. The market is really for those, the outdoor and the sports fan in the market. Thank you. 那么，关于第三个问题，就是我们几年前的一款这个燃气的三轮摩托车。那么，我们康迪一直都在创新和优化我们的产品，那么目前，我们的工作重点还是越野休闲车。谢谢。 As for the models you mentioned in the past, you know, those are the old model in our line, and we keep innovating and produce more up-to-date vehicles that match the target in the customer's segment market. Right now we focus on the leisure, outdoor, off-highway vehicle. Thank you. Thank you very much. Our next question is from the line of Mark Canal, private investor. Please proceed with your questions. Good morning, everyone. Let me introduce myself for a short time here. I'm a Swiss-based independent wealth manager and broker for thirty years, and I've been in Canada with several million shares in position and a multi-year participation in these conference calls. I could never comprehend, let alone expect to see the NASDAQ stock in such a strong and timely position as Kandi, with trading at a 40% discount to cash, 65% discount to book value, and at a thirteen-year low price. Peter, could you just go ahead? Peter? 这个投资者他说他先介绍一下。他说他是一个，有多年经验的一个，一个...... Uh, the stock, the stock trader, ah, he is, um, participating in ours, tracking our company's stock already for many years, also multiple times participating in our telephone conferences. He is always not, very hard to understand our company why, ah, so many stocks, so being, so severely being undervalued, that is our book value greatly, uh, exceeds our stock's value. Go ahead. On the last conference call, a discussion came up about Kandi targeting to spin-off as a separate NASDAQ company its U.S. subsidiary Kandi America later this year. There was discussion that the most Kandi could spin off and maintain full rights of consolidation of financials is just under 20%. But to make this possible, due to the NASDAQ requirements of a minimum price per share of $4 and $50 million market cap, Kandi itself would have to have at least $4 plus price per share to meet NASDAQ listing requirements for the subsidiary, but higher to assure the IPO doesn't go down on the first day of trading. What was suggested on the last call was for the company to just do a simple ten million share tender offer at $3.50 a share, $1.50 on the book value, costing no more than 50% of Kandi's cash. This announcement would call for an immediate increase in bids due to the traders bidding at least $3-$3.40 against the $3.50 tender price, which is still well under the $5 book value. But each share bought under the book value will increase the remaining book value per share by the difference between the purchase price and the book value. So if the non-selling holder gain $1.50 to $15 million in book value for each 1 million-plus share purchase, it alone would be a great win. The response to this question on the last conference call from the CEO was: Thank you for your suggestion, and we will appreciate that. We will take it in consideration and evaluate and react, and react properly. But remember at the time that this was set, which can be trading at $3. So do this is even, so is this even more, now this is even more important? And there will come my questions now. Thank you. This question is about the last conference call, when we discussed Kandi's plan to spin off its U.S. subsidiary Kandi America as an independent NASDAQ company later this year. In the discussion, it was mentioned that if Kandi wants to maintain the full rights to financial consolidation, it can only spin off less than 20% of the shares. But to achieve this goal, due to one of NASDAQ's requirements being that the minimum price per share must be $4, market value at least $50 million. Kandi's own stock price must at least reach above $4 per share, this way it can meet the subsidiary's listing requirements, and preferably higher, to ensure that after the IPO, the first trading day will not fall. During the last conference call, investors suggested that the company could conduct a simple 10 million share tender offer at $3.5 per share, that is $1.5 lower than the book value, cost will not exceed 15% of Kandi's cash. This announcement will immediately trigger arbitrageurs' bidding, at least between $3 and $3.4, to compete against the $3.5 offer price, this still lower than $5 book value. But every share bought below book value will make the remaining every share's book value increase by the difference between the purchase price and book value. Therefore, if non-selling holders buy over 1 million shares, book value will increase $1.5 million to $15 million, this must be a win-win approach. In the last conference call, CEO's response was this: Thank you for your suggestion, we very much appreciate, we will consider and make appropriate response. But please note that at that time, Kandi's stock price was above $3, and now this measure will appear even more important, because now stock is lower than then. I have the following questions. Go ahead with your questions. On Wednesday, Kandi stock opened at $1.66 a share, the lowest price it had traded in the past fourteen years. Does management know any other investment or use of cash better than spending 50% of Kandi average cash position held over the past three years, then buying Kandi stock at a 30% discount to book value? 在周三的时候，康迪的股票开盘价为每股$1.66，这是过去14年来最低的交易价格。管理层是否知道有比以账面价值低30%购买康迪股票更好的投资或现金使用方式，尤其是在过去3年中平均持有的现金位置？ ... We understand that our stock is seriously and significantly undervalued, and we are increasing our budget in the marketing and advertising to promote our brand. Hopefully, it can attract more American investors. Thank you. Okay, does management still want to spin off Kandi America? And if so, does it have any better idea how to get Kandi stock price up to the price very quickly to assist this execution of the spin off, besides the marketing you just mentioned? Because, you know, in the past there was already a lot of PRs and marketing, but there was like, missing a little bit figures and this and that. So there was no big impact with this marketing and the stock price. 管理层是否仍然希望拆分美国呢？Kandi America呢？如果是的话，有没有更多的办法能快速提升Kandi的股价，以帮助拆分顺利进行？我知道你刚才有提到公司现在正在增加市场营销和广告投入，但这些事情之前也多多少少都有做过，但是并没有对股价有太大的影响。 So we are considering the potential spin-off listing for Kandi America, but due to the SEC regulations, we are not allowed to discuss too much about this matter. Thank you for understanding. Okay, thank you for this information. So that means, in my view, that you're considering and you have a quiet period for that. That's very good. Can you tell us a little bit more about the Monday announcement of the manufacturing agreement with Taiwan-based Hartford? Clearly, as expected, has plenty—Kandi has plenty of excess manufacturing capacity in-house, and normally would not need to add significant capacity right now. So either this deal is being done, as inferred in the first paragraph of the Monday announcement, meets all necessary manufacturing standards, regulatory requirements, and local content thresholds for both the U.S. and production in Taiwan. Or Kandi is going to need all this current excess capacity to make and deliver enough product to reach its 2025 goal of five hundred million revenue, which is it? Or is there any other reason? 谢谢你刚才回答。如果现在不能说，说明你现在正在沉默期，说明你可能正在进行一些动作。我的下一个问题是，就是能否向我们介绍一下周一公司宣布的与台湾哈特福的协议。显然康迪内部已经有很多过剩产能，正常情况下，现在是不需要增加产能的。那么这笔交易是为了满足公告第一段中提到的，文中这样写道，将确保生产符合所有必要的制造标准、法规要求以及自治区的的要求，以满足出口美国和台湾本地生产的规定。还是康迪将需要利用所有现在的过剩产能来生产并交付足够的产品，以达到之前所说的2025年$500 million的目标，或许是其他什么的原因。 扩展到台湾，是我们加强供应链的战略举措，那么我们，扩展到台湾的主要目的是，为我们现有的产品增加价值，进一步可以提升，我们的产品质量和我们产品的市场竞争力。 So expanding to Taiwan is a strategic move for us to enhance our supply chain. The main purpose is to add value to our existing products and further enhance and strengthen our market competitiveness. Thank you. Okay, I understand. And as my last question is, end of report today, you mentioned the Lowe's deal, which is quite important for you as a company. Maybe now specifically to the U.S. management team, has there been any discussions about the size of this deal? So, you know, how many UTVs or whatsoever and how many years this is going to be in the market, this deal? That could give a very good insight for the future figures as a guide. 最后一个问题是，今天的电话会议开场白的时候，你有提到跟Lowe's的这个合作，你能不能更加说明一下这个合作的期限，能有一些具体的数据，是怎么样去进行？是UTV，还是能够给更多一些和他合作的具体信息。 ... this question, Johnny, answer it. Make ask him to be more specific. We are going to have a CEO of Kandi America, Johnny, to answer your question, but if you can be more specific about what you would like to know and that will be, that would be really good. Oh, yeah, of course. You know, I mean, if you're signing such a deal, Lowe's as well as Kandi, you know, they must have some idea how many UTVs of this kind could be brought to the market or sold or being sold, you know? Because Kandi has to be prepared production-wise and Lowe's has to be prepared, you know, distribution-wise. So I would think that there must have been some discussions about how many UTVs of these special NFL licensed UTVs could be sold or the market is willing to accept. Okay, very good question, you know, and I think I'm gonna answer that first, and then I will invite my colleague, you know, Olin to weigh in as well. Yes, we do have a, you know, like a discussion, regular meeting, you know, with Lowe's to discuss, you know, what the market looks like. And we understand the market is quite, you know, challenging, you know, right now with all the economic climate, such as, you know, inflation. So, I think that we carefully review the market, and then also we determine, you know, how many stores, how many inventory we would like to, you know, bring in. So I think that's, you know... We still have a lot of, you know, discussion going on with Lowe's, and Olin, would you like to weigh in? Olin? Yes, I was unmuting. Can you guys hear me? Yes. Okay. Yeah, so to Johnny's point, we are in weekly, several times a week, conversations with the Lowe's team. So, as it relates specifically to the NFL, you know, we're in a position where we've got a lot of everyone excited about NFL, Lowe's, and obviously our team at Kandi. So we've got a plan. It's a three-year long plan, that's the extent of the contract at this point. And so we are going down a path that would be in the market. To put a hard number on it right now, I would have a very hard time putting a hard number. There are certainly very high expectations among all three parties involved. Johnny, if you feel better about a specific number, I'm happy to do that, but I just don't know that number yet. We do have very high expectations to impact- Mm-hmm. Kandi as a company. I'll stop there. Thank you, Olin. I think you, I think you're a little bit, you know, breaking up. But I think I want to make a, you know, correction. It's the NFL, we have a, we are licensed to sell it on the golf carts. It's not the UTV. So right now, you know, it's actually available to order on lowes.com. So I think, yeah, I agree with what Olin mentioned. Thank you for your question. Okay, then that's it for me. Just... Yeah? Okay. For just my last remarks for management, especially in China, is, you know, there's a good company, that's one side, and there's a good stock price, and these two things often don't match together. So I think, when it comes to company, the management has done a terrific job over the last years, you know, to keep the company afloat and to strike good deals and to bring the company where it is today. But when it comes to the stock price, I must say that, there they are a little bit lagging behind, what, for what reason ever. So I would say, you know, one could little bit you know concentrate now a little bit also on the stock price for the shareholders, and to make the stock a little bit, you know, in the public view, that there's more attention about Kandi and what Kandi can provide and Kandi can do, then the stock price could go significantly higher from the current position. Thank you for taking my questions. And then, last thing, I want to say is, the company itself is a very good company, and the company's stock price is another thing. Often, these two things are not necessarily the same. Our company has developed very well over the years, and we have these two things are not necessarily the same. Our company has developed very well over the years, and we have also seized many good opportunities along the way. It It is very gratifying to see the development we have achieved today. But the stock today. But the stock price is quite disappointing. I hope the management will pay more attention to the stock price performance in the capital market in the future. This would help, shareholders maximize the value of their stocks. Thank you for answering my questions. the capital market in the future. This would help, shareholders maximize the value of their stocks. Thank you for answering my questions. the capital market in the future. This would help, shareholders maximize the value of their stocks. Thank you for answering my questions. Okay. Okay. Thank you. Thank you. Thank you. Operator, we're ready to take next question. The next question is from the line of Steve Miller with a private investor. Please proceed with your questions. ...Good morning, Kewa. You said in your press release today that the United States is your primary market, and that the increased freight shipping expense from China to service your expanding customer base was the reason for the biggest increase in your selling and distribution expense. Although I can guess as to the reasons for your recently announced partnership with Hartford Industrial in Taiwan for manufacturing, why don't you have manufacturing facilities in your primary market, the United States, especially as you contemplate spinning off Kandi America to be an independent, publicly traded company? Thank you. Regarding the language issue, he said that in the news we released today, it mentions that the current U.S. market is our main sales market. He wants to ask, since our sales' main focus is now in the U.S., and we will let Kandi America conduct a spin-off listing, then why don't we establish our production facilities in the U.S., but instead establish them... 设置到台湾？ 这个应该这么说，我们呃，美国在搞组装也在筹备当中，但是这个你懂的，我们为什么要转到这个，通过台湾去推动，这个我们现在不想很多的讨论。 So, we actually are considering assembly our production line in U.S. in the future. It's definitely in our plan. And so, the collaboration with Taiwan is one of a, it's a strategy, and we may not, you know, disclose too much about that in this earnings call. Thank you. All right. I'm quite active under my own name on social media, especially regarding Kandi, and there seems to be a campaign against Kandi by detractors on a lot of internet chat boards, claiming that Kandi is nothing more than a reseller of private labeling of its array of golf carts and various UTVs, ATVs, go-karts, other off-road electric vehicles, and even lithium batteries made by other manufacturers. As longtime Kandi followers are aware, this is a false narrative, but easy for detractors to say, since Kandi does not have a high-profile corporate website in English that showcases its in-house capabilities. Kewa, do you want to go ahead and translate that? OK，最近就是在互联网上，有看到很多就是对康迪，不是很好，很反对的声音，就是总是在声称康迪不过其实就是一个转销商，就是把其他制造商生产的高尔夫球车，各种UTV、ATV的。 贴上去，甚至还有锂电池贴上自己的标签，在这边再销售。其实这种说法是错误的。对于长期关注康迪人呢，他们是很清楚，但是由于康迪没有一个做得非常，非常完善，非常就是高，非常容易，读懂的一个，英文的公司网站，来展示其公司内部的制造能力，所以这种误解呢，就很容易发生。Go ahead, please. you. So we all know obviously that Kandi stock is extremely undervalued, especially even though it's a highly integrated, major manufacturer. So a few conference calls back, a question was asked as to what percentage of the cost of a typical Kandi vehicle, for lack of a better term, such as a golf cart, was actually manufactured by Kandi in its own multiple state-of-the-art facilities throughout whatever cities in China and now Taiwan. I believe at the time you said that a short management reply was somewhere around 90%. Could you go ahead and translate that? And I'll get to my three questions. OK，大家知道，就是现在康迪目前的市场值呢，是$160 million，就是，这是很低的。然后，之前呢，就是我们有一个问题，就是问到我们康迪这些产品，比如说像什么高尔夫车呀，这些有多少，整个车有百分之多少是在我们自己的生产基地来生产的。 当时我记得管理层是这样回答，说大概90%。Go ahead. Thank you. Now, I've got three quick, related questions. Was that 90% response accurate? And if so, can you briefly tell us, for the record, about each of Kandi's owned various facilities, specifically where they are located, what kind of products are made in each facility? And also, can you comment about the current% of capacity being used in each facility and the maximum annual capacity available at each facility? OK，所以我的第一个问题是想问，当时您回答的百分之九十是我们自己在自己的生产基地里面生产，这个回答是否仍然是正确的？如果是正确的话呢，您是否能够详细地介绍一下康迪所有的自己的生产设施，就是他们每一个的所在地。... 然后他们每个生产基地现在生产的主要产品，然后他们的年产量，他们最大的年产能，还有他们的利用率，以及这些设备平均的使用年限。 我们康迪在海南基地，主要生产高尔夫球车等系列车型。那么在金华基地，主要生产农夫车、ATV、沙滩车等系列车型。那么我们的永康基地，主要生产电机和电控产品。那么江西基地主要生产锂电池及电池pack产品。那么我们整个康迪公司，拥有年产超过10万辆各种车辆及相关零件的生产能力。谢谢。 First of all, the Kandi's China base mainly produces the golf cart and other series of the models. Our Jinhua base mainly produce the UTV, ATVs, the beach cars, and other series of the models. Our Yongkang base mainly produces the motor and electronic control products and the parts, whereas our Jiangxi base mainly produces the lithium batteries and battery pack products. Overall, Kandi has an annual production capacity of more than 100,000 various types of vehicles and related parts. Thank you. 那个加一句，90%的那个自制率应该是正确的。 Oh, and by the way, you know, it's correct that our own manufacturing rate of the Kandi product does exceed 90%. Thank you. Out of curiosity, I don't know if this is possible. If one was to go and do a total replacement of your facilities and equipment, do you have any estimate of what the total cost would be in U.S. dollars that someone would need to invest to replicate all of your facilities and equipment? Do you mean just any one of facilities or all of the facilities we are going to replicate in the U.S.? All of your facilities. I'm just trying to get a sense of what it would take if some third party came in and wanted to do what Kandi is currently doing, what kind of cost would it be to them to replicate all of your current facilities and equipment, without regard to where they're located? 他说，他就很好奇，如果现在有一个第三方想给康迪投资在美国建厂，如果要把我们现有的在中国各个厂的能力和现有的设备同样地复制在美国的话，要建立这么一个厂，就是要有多大的投资，就是大概...才能够达到我们现在的产能。 这个应该这么说，就是全部移过去，这也是不现实的，但是在美国先搞CKD，逐步扩大，这是我们已经在规划。具体多少投资，那等预算出来才知道。 So, it seems from the pragmatic standpoint, it's not quite feasible to replicate the whole our facilities from China to U.S., although we are considering to have assembling part of their lines in U.S. in the future. Whereas the total overall budget, we it's hard for us to tell now, and we have to look at some other detail on financial analysis report. Thank you. OK, and Alan, I'm not sure if it broke up or I just didn't understand. That 90% number back from your previous answer in terms of what percent of a typical like a golf cart is actually made by Kandi versus products acquired from outside, is 90% still an accurate percentage? is. Yeah, it is. OK. And then my last question is, your China-based website, quite frankly, seems to be outdated in that its images and videos are still heavy on EV autos and trucks. What about updating that site and on all of your websites, and this is related to my previous questions, can you at least create a PowerPoint presentation on your state-of-the-art manufacturing facilities and capacity, so people who have questions about Kandi and in terms of how much you're actually manufacturing versus how much you're obtaining from third parties and then putting on your label exists? I think that would be actually quite helpful and counteract some of the claims out in social media. And that's all I've got. Thank you. Thank you. 他最后一个问题呢，他是说现在的康迪中国的官网啊，是，是有些过时的，而且上面大部分的图片啊，视频仍然是以电动汽车和卡，啊，卡车为主，而现在康迪其实的这个产品已经早就像换成，非公路用车了。... 他是否有可能就是在康基的网站，就是进行一个全面的更新，然后呢，有一些信息，比如说一个非常完整的演示，这个PPT展示，来显示中国我们的各个工厂的设施和产能，这样的话才能够以事实来证明我们公司的生产能力90%是我们自己生产的，多少是外面人生产的，不然就是在网上的谣言会不断地持续。这就是我的意见。 谢谢你的意见，你提的这些意见都很好，那么你说的这些事情，我们大部分都已经调整了，当然我们还会进一步地进行完善。谢谢。 Thank you for your suggestions and the feedback. They are very constructive. We have actually been working on already adjusted in the most of those items, and of course, we will further improve them to make them more accessible to our investors. Thank you. Thank you. Our next questions from the line of Fred Roscher with Cleantech Investments. Please proceed with your questions. Good morning. With existing outlets in North America, which we, we know include Lowe's 2,500 outlets, Walmart 4,500 outlets, Amazon, Camping World, Costco, Canada 108 outlets, national big box stores, along with Peavey Mart / Ace Hardware Canada at 200 outlets. All but Lowe's added in the past year with maybe a 1,000 independent outlets, with unfortunately little announcement from the company. You want to start that Kewa? He said that last year we added a lot. Kandi America added a lot of sales partners. Just this Lowe's has over a thousand. But we didn't have any news to show our progress on this matter. Please continue. Just since the last conference call, it appears from sources, several new international outlets have been opening, to include a very impressive, which we talked about, the Southeast Asia, Thailand location, along with Aruba, Curacao, Dominican Republic and Dubai, and even now in the EU market. Go ahead, Kewa. Kewa, and then my questions. 他说上个季度还看到，就是我们现在增加到了很多地区，什么东南亚，那个中东这些，就是这个扩张速度是很惊人的。Continue, please. Okay, my question is, outside of the U.S. and Canada, actually, how many international locations have been opened and are soon to be opened? In other words, a number or a close number. That's my first question. 我就想知道，就是现在目前除了美国和加拿大，我们目前已经在哪些国家，有多少个网点已经开设了，就是我需要一个具体的数字。 除了美国和加拿大之外，啊，我们一直都在欧洲和东南亚，啊，都在积极地开拓市场，那么目前我们已经进入了十几个国家，啊，在试销。谢谢。 So apart from our U.S. and Canada market, we are also exploring the European and Southeast Asia market. We are currently working in more than a dozen countries for the trial sales. Thank you. My second question, in your travels, have any multi-store chain been targeted for international growth? In other words, large store chains like Walmart and Lowe's. Thank you. You mean internationally, outside of U.S.? Any... Multi-store chains, big chains, big companies, big stores. I know outside of U.S.? Yes, for international growth. 他问就是除了现在在美国国内，比如说像Lowe's、沃尔玛这样的连锁大卖场，在国际上我们是否已经跟这些有名的连锁大卖场进行了潜在的合作。 就是刚才说了，就是美国那边，就是跟几个大超市我们都已经建立了这个合作关系，但是其他国家，其实大卖场是很少的，都是经销商的一个个在跟我们的产品在试销。 In U.S., we do work with those, ... the large, scalable, retail store chain. However, in other countries, like the European countries, we actually tend to work with the distributors instead. And so, that's our plan for now. Thank you. Okay, thank you very much. I have a quick question for Johnny, if we could. How many Lowe's stores does he expect the NFL carts to be involved with? Okay. Hey, Fred. Nice to meet you. Thank you for your question. So for NFL, right now, our plan is only available on Lowes.com. We do have some discussion with Lowe's to expand to their stores. However, I think they have to look at their, you know, space availability, and we know the holiday season is coming up, so they're, you know, real estate is quite busy right now. So, but, but, you know, it's right now, it's available on Lowes.com. Thank you. Okay, thank you. That's all. Thank you. Thank you. Next question, please. The next question is from the line of Arthur Porcari with Corporate Strategies. Please proceed with your question. Thank you. Well, I'm really happy to see that Johnny and Owen are on board here. As someone that's been involved in Kandi since the very beginning, I also had the honor of being invited to come visit back in, I think, two thousand and twenty or twenty-one, whenever the K23 appeared. I guess, being the first shareholder to ever have a chance to test drive it. And I was very impressed at the time, kind of disappointed it never had a chance to go, but I can't blame you guys for it. What I can give you, though, is a lot of credit for what's happened since then, and really happy to see Owen has joined you, Johnny. He sounds like a very capable partner and somebody to marshal our assets as investors. Anyway, let me get back to my original piece. I wasn't expecting to hear, but look forward to maybe taking that short drive up to Dallas and visit you all again soon and may meet Olin too, one time. Okay, anyway, Kandi must have an incredible relationship with Lowe's, based on Lowe's seemingly unending support and trust of Kandi. Aside from the fact Lowe's picked up Kandi two years ago to launch their newest, highest cost item in their system, only a few months after Kandi first entered the U.S. golf cart arena. However, initially it was their marketing veteran, Coleman, who only had one branded cart line back then. In less than a year, Lowe's has totally dumped Coleman out of the picture, went directly to Kandi, picked up Kandi's own branded golf carts, the industry's youngest brand, and as their sole golf cart supplier. And exclusively now show more than 80 variations of Kandi carts on their web portal. Just checked that the other day, just amazing. Go ahead and pass that on. Okay. Okay. Bear with me a second here. To continue with the narrative, and then I have a few questions. Then, just a few months later, Lowe's pays $100 million to renew and expand its four-year relationship for the sole exclusive rights to become the official Lowe's Home Team sponsor to the National Football League, and for the first time, Lowe's adds golf carts to their NFL sponsorship inventory. Coincidentally, this is the largest single big-ticket item that Lowe's sells nationwide by a double. But instead of bringing in any one of the more seasoned golf cart makers who would love to have had this account, they took what most would think was a risk to their reputation and picked the new kid, Kandi, and stake their reputation on it. Plus, they put up that $100 million. Go ahead and pass that on, then I have some questions. ...Additionally, a few months later, we saw Lowe's make a major decision once again, investing $100 million, renewing and expanding the four-year partnership between both parties, becoming the official NFL Lowe's, the Home Team sponsor, for the first time including golf carts in its product line, and moreover, this golf cart also became Lowe's highest unit price product sold nationwide, with sales two times higher than other products. Moreover, what is surprising is that Lowe's did not choose those manufacturers of veteran golf carts with very rich experience, but instead risked huge reputational risk to choose the rookie Kandi, placing its $100 million investment on Kandi. Regarding this, I have the following several questions I want to ask. Please go ahead. And again, appropriate that you have Olin on board for the rest of my questions here. In management's opinion, why did Lowe's pick Kandi? And does Kandi's... Well, you already said that extends for the full remaining three years of the Lowe's NFL agreement. That part I think you already agreed, is it does. But in your opinion, why did Lowe's pick Kandi? And Olin probably the appropriate person to ask that question to. 啊，这个问题 - Sure。 I want to ask about Kandi America, Olin. I just want to know, from the management's perspective, why do you think Lowe's chose Kandi? Yeah. So thanks for the question. Obviously, Lowe's, like any of the major mass retailers, has a very rigorous vetting process for vendor selection and product selection. And so over the course of that short window of time that you referred to, we've become one of their key partners in the outdoor recreational space, particularly in the electric side of that space. And I think that a lot of that's due to our quality and the value proposition and a high level of trust that we've developed with that team. Okay. Is Lowe's planning on including actual golf carts and/or six passenger carts? I asked that question after recently visiting a Galveston e-car rental business and a golf course, who would be happy, both cases, to buy a fleet of NFL cars, even if they had to buy them from Lowe's to put them in their rental pool. 我的第二个问题是，我想问一下 Lowe's 是否会计划纳入那种高尔夫球车，或者是那种六座车。我问这个问题，是因为我最近访问了一个地方，一个俱乐部，他们说会对这种车很有兴趣，说甚至会直接向 Lowe's 来购买，所以我想知道一下你们的计划。 Yes, so I can answer this as well. We are currently a supplier to Lowe's with six passenger carts in a limited store count, a couple hundred doors. We also have a very robust business with them online for that product, along with a number of other categories that perform well online. And as far as future Lowe's commitments to product offering, particularly on the floor, that's something that I wouldn't want to comment on, because that's kind of an always evolving process for these major retailers as they look at their, the real estate they have available and what products make sense on their floor. Well, that wasn't quite my question. My question was specifically had to do with the NFL. Again, Mm. You can imagine a Galveston car rental company over there would love to have some, I hate to say it, Cowboys too, but Texans carts to go ahead and rent to people, go up and down the seawall. And as far as the golf cart course is concerned, they think it'd be quite interesting to have actual golf carts where you put the golf bags in the back. I mean, this model that you have right now is a beautiful model, is 4 P, all forward-facing seats, but it's not really golf compatible. And yet the sport of golf and the sport of football seem to have some sort of a relationship over here, more so than most other sports, as you well know. So that was the basis of that question, actually. Yeah. Okay. If I understand your question, I mean, right now the agreement is around 4P cart, and any NFL products that are obviously gonna be marketed are gonna be marketed via Lowe's because of the relationship. So I'm not sure if that answers your question totally, but that's our situation today. But is it something that you might have an interest in doing or presenting for Lowe's to maybe have that, or would be just too difficult to re-skin? It seems like basically you're putting a wrap on an existing product that we already have and putting a logo embroidered into the headrest and getting maybe a couple of thousand dollars more for the equivalent. It would just seem like it go hand in hand and didn't know whether that had been in the discussion yet. But if not, maybe it's something worthwhile discussing. That doesn't require a response, unless you want to respond to it. Listen, I'll say this, we obviously are interested in expanding as success of the program dictates. So I think that everything could be on the table, but at this point, we're so early into the program, I think we're gonna play with the 4 P, and then I'm sure that there will be conversations if this is tremendously successful. Sure. As we just discovered, this is a three-year deal, which makes it that much more exciting, and I'm sure it does for you as well. Anyway, on the last conference call, management responded to a target question, originally asked on the conference call in 2022, confirming it still had a high-end goal of possibly achieving as much as $500 million in revenues for 2025. But I suspect that number certainly would have gotten lower now, but still pretty aggressive number because of the economy in general. That's a long way from $120 million, or maybe $200 million, $210 million we'll do this year. Anyway, let's see, Lowe's, what? I am just looking at some notes I have over here. Oh, one other point I wanted to bring to your attention. I guess you're probably aware of this, but, you know, they do, as I mentioned, actually have about 80 different variations of your golf carts on Lowe's website. Of course, you're exclusive in Lowe's. I'm talking about in general. But what's interesting is there are several hundred five-star ratings in the rating system, you know, on these golf carts. I don't know if you're aware or not, but you got an overall 4.5 plus rating if you add in all those, all the various different Kandi-provided products. Which is pretty phenomenal and speaks very highly to at least the thoughts of the customers that have been buying the vehicles through Lowe's, and that's a real feather in y'all's cap. But, anyway, go ahead and pass that on. But what's your question, Art? Well, that really wasn't a question. I guess that was more of a comment that I had here, and Olin kind of asked the first part. Let me see. I think we have one or two more items here, just kind of from prior things that were said. One of the questions I had was, since Kandi's gonna spin off Kandi America as a special separate entity, wouldn't it be wise to bring the CEO and perhaps Olin on the call in the future? But you all did that, so there you go. Okay. Let's see. Hang, let me translate what you have said so far. Okay. [speaking in Mandarin] Okay. Continue with your question, if you have any. Yeah, okay, just a couple of more light ones over here. This is a follow-up on a question that somebody else asked over here. I'm never sure we got the right answer for it or the answer that was understandable. Had to do with the total valuation of all of Kandi's facilities if they had to be replicated. I remember for a fact that Kandi built from scratch the Hainan facility, which has the 100,000 capacity, and that was, I believe five, four or five years ago, and that was done for about $200 million by itself. Subsequent to that, I know they bought a, they sold it, the old facility, and built a brand-new facility in Jinhua. I guess that's where they're making your off-road products. So it would seem to me that the value of all those facilities, which, if they had to be replicated today, would certainly be in excess of three hundred million, maybe a bigger number than that. Am I wrong? You mean three hundred million what? Okay. Originally, the original Hainan facility was built for around $200 million by Kandi- Mm-hmm. Four or five years ago, and the new facility we have in Jinhua, and which is, I guess there are two or four or five facilities in various cities are making vehicles, where I believe they're making the Cowboy. I don't know what that cost, but maybe another hundred million or so. So my comment was, when the question was asked about what the cost would be to rebuild that type of manufacturing capacity that we have, it would seem to me that number would be at least three hundred million or higher. And Oh. Am I wrong on that or what? Let me, let me ask. It's very hard for us to tell at the moment because that involves too many parts, like the supply chain, you know, the scale and other factors, but then we would like to think of that step by step, so that's our plan and consideration. Thank you. What you're not even willing to commit to the fact that the original cost of the facilities, without taking all that other consideration... I guess my question basically is: Is it worth at least $300 million if you had to rebuild the whole thing again? [speaking in Mandarin] 那它要是相同的，也是做这么大的规模，也是90%以上要自己生产，那肯定在美国还会更贵，还会超过这个。但是，我们要是在美国去生产的话，那做有些零件什么东西还是要在国际上采购，整个供应链不是肯定不会100%在美国，所以它的投入那肯定是不一样的。所以这个要，要可研预算出来以后才能有，有这个数据。因为你刚才说的要是相同，就是拷过去的话，一是没有必要，那么当然也是不，不合算。所以，这个当然刚才说的，假如说相同拷过去，那肯定是要超过中国，美国肯定比中国贵。 So just to answer your question, if we replicate the whole exactly same scale, same thing, you know, from China to U.S., it will be even higher than three hundred million. But then, again, it involves a lot of different factors when you do the manufacturing, like the supply chain and other factors, and it doesn't make sense. Economically, it just replicate the whole effect, something whole scale, whole same procedures in U.S. because it just doesn't work that way. Yeah. But then, yeah, that's our conclusion for that. Thank you. That was never my question. My question is the existing facilities that we have in China that are making all these vehicles, that we are being the company is being accused by the people on the Internet of farming out the building. If we had to just replicate them in China, what would that value? What would it cost the company to replicate just the facilities in China? Forget about importing. Alan, 你来翻译一下，这个是不是我刚才没有翻译准确。 那，胡总的意思是，如果我们要完全复制一模一样的整个生产链，到美国应该怎么处理？因为我都答应，我都跟他回过了。本来这个如果我们要做，肯定更贵，是吧？但这个不是这样去管理，不是这样去生产的，不是这么运营的，你不会完全复制从中国到美国，因为很多特别的一些原因，条件不一样，但他还是想了解更多的细节。 这个没有什么好细节，我们要是复制过去的话，美国呢，我们现在，美国那边的，包括那个，那个储备啊或是投资，我们都不了解，那现在我这个价。但是有一条可以肯定，要是全复制过去，一是不会复制过去，不会那么做的。第二的话呢，假若说复制，那肯定比中国要贵得多。 So, in order to address your question again, you asked whether you will cost more than CNY 300 million, right? Long story short, yes, if we do exactly same thing. But just in the reality, we may not do it that way, because, again, it's not how it works in the production cycle. But yeah, in order to answer your question, yes, you'll be even more than that. That's what I was- Just for your information. Okay, very good. Okay, well, I guess last comment I have here, more of a comment than anything else. I have to admit, been in this business fifty-one years, never seen anything quite like this one, where you have a company, where a stock is trading well under over, over a dollar a share, under cash in, in the stock market, it's got very little debt. As a book value, it's trading $3 or whatever it is, or more under book value. And you just landed probably the cherry project that virtually any golf cart company in the world would be trying to get right now, which you have with the NFL/Lowe's. Plus you have a sponsor like Lowe's, and you got Walmart, you got the Camping World, you got all these others, and the stock is sitting down here. You got to do something about getting the stock price up. I know even Olin is the second, I believe he's the second-largest shareholder in the company now, and if I'm not mistaken, I think one year ago he did a deal with, what? $3.30 a share? You can't be too happy with that either. So we got to do something, and I think the only thing you can do in the United States is you gotta, you got to do something very definitive. And, you know, if normal circumstances, doing a deal with Lowe's would take any other stock up to $10 a share. We know this stock. We know this stock can actually do that, because right after Kandi America was brought on board, the stock went up to $19 a share just based on that. And then they were doing $10 million in revenue. This year, you're probably gonna do $150 million in revenues, just Kandi America portion, or more. And so that's just my final comment here. If anybody wants to comment on it, I'd appreciate it. But if not, you know, we should have a great third quarter now, because I guess you haven't done no revenues have shown up yet, because you're starting now in August from the Lowe's golf cart, I mean, NFL program. So I would think we're going to have a great third quarter, and maybe I'm wrong. If anybody wants to address that or not. Anyway, thank you. Thank you for your remarks. He finally said that in his 51-year professional career, he has never seen a company with book value so high, while stock value so low. He feels the company must do something to change this current situation. I hope the company has better earnings in the third quarter. Operator, let's, that's all. Thank you. Thank you. I'll turn the call back to management for any 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 consultant at 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. Thank you for your participation.