Kandi Technologies Group, Inc. Q3 FY2023 earnings call

• Successfully transformed from loss to profit in the first half of 2023, with continued profitability in the third quarter due to product transformation initiatives.
• Subsidiary SC Autosports acquired the Northern Group, enhancing sales pipeline and distribution channels.
• Partnered with Rural King, a giant in the American farming and home retail industry, to expand customer base.
• Displayed new fully electric vehicles at a trade show, receiving positive feedback and enhancing presence across distribution channels.
• Purchased a 75,000 square foot shipping center in Texas to boost marketing capabilities in the United States.
• Focus on expanding presence in the North American market and entering global markets in 2024, expecting substantial growth in production and sales compared to the current year.

No detailed segment-wise financial performance with revenue contribution % provided in the transcript.

• Primary focus remains expanding presence in the North American market.
• Confident in substantial growth in production and sales in 2024 compared to the current year.

• Forward-looking statements involve inherent risks and uncertainties; actual results may differ materially from expectations.
• Further information regarding risks and uncertainties is included in the company's public filings with the SEC.

Q: A lot of Wall Street pundits have been warning U.S. investors away from China stocks as well as electric automakers, likely the cause of Kandi's poor stock action in these last few months in spite of consecutive impressive jumps in quarterly performance in reality from a purely operational cash management view, management looks brilliant in both selling its legacy Jinwa facility for $60 million cash profit plus a government subsidy to build a new replacing facility and selling its China-based EV auto, JV Fengsheng, interest a former partner Geely for an additional $40-plus million profit, both just as the COVID-epidemic began slowing China's economy. The JV sale to Geely looks particularly smart since Fengsheng has not shown up in the China media for years and seems to now have been terminated. Maybe you can just translate that and get to my questions.

A: [Operator Instructions] Okay. My question to management is to confirm or reject a theory that should clearly set Kandi apart from both the EV and China investor concerns mentioned before. The theory is Kandi with its new direction away from EV autos back to its decades ago, export legacy off-road business is in the best of both worlds, particularly since it no longer does have - no longer does have to rely on the internal sales in China. Kandi is a conglomerate manufacturing in-house, 90% of all parts for its electric fleet, including chassis, body parts, motors, lithium batteries and BMS in China where the economy and deployment has slowed along with multiyear lows on commodities like copper on rare earth minerals then ships to vehicles on containers also at multiyear low prices to the U.S. where the economy is much better, and there is a significant demand for low-cost electric transportation. It is no wonder Kandi CEO has predicted gross margins in the 38% area. If you could just translate that then. -- to small mall A – Unidentified Company Representative: [Foreign Language] We will now be conducting a question-and-answer session. If you would like to iron keypad. A confirmation tone will indicate your line is in the question queue. -- 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 starts. One moment, please, while we poll for questions. Xueqin Dong: Does management agree with the stated observation? Is Kandi aggressively attempting to expand its global exposure? And if so, which markets do you expect to add over the next 12 months? A – Unidentified Company Representative: I have one more after that, but I'd like to hear his answer to that. Xueqin Dong: [Foreign Language]