Kandi(US:KNDI)2020-04-28 18:33Financial Data and Key Metrics Changes - Full year 2019 revenue was $135.7 million, an increase of 20.7% compared to the previous year, with gross margin expanding to 18.7% [6][8][10] Business Line Data and Key Metrics Changes - The company stopped production of previous EV products due to restructuring but laid groundwork for growth through new product development and market expansion [6][10] - The Hainan factory is currently manufacturing the K23 model for the rideshare market, but sales have been put on hold due to COVID-19 [13][15] Market Data and Key Metrics Changes - The company has about 50 dealerships ready to distribute Kandi EVs in the U.S., but the COVID crisis has delayed operations [15][16] - The Maple 30X SUV is expected to sell around 30,000 units this year, priced at approximately $10,000, significantly lower than competitors like Tesla [27][30] Company Strategy and Development Direction - The company is focusing on steady growth and is not actively planning acquisitions unless targeted opportunities arise [9][10] - Kandi is adjusting its model structure to increase battery production for intelligent electric transportation products [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth but emphasized the need to conserve resources due to the volatile nature of the COVID-19 crisis [9][10] - The company expects to see high growth in revenue from the Yongkang Scrou factory due to increased demand for motors [40] Other Important Information - The company has changed auditors to Marcum to gain PCAOB access to more auditing information, which is a priority for compliance [20][22] - The next model to be released will include quick battery exchange technology, targeting the rideshare market [32][34] Q&A Session Summary Question: Will Kandi take advantage of industry stress for acquisitions? - Management indicated that they are not planning acquisitions unless there are targeted companies, focusing on conserving resources for now [9] Question: What vehicles are manufactured at the Hainan factory? - The Hainan factory is manufacturing the K23 model, but sales are currently on hold due to COVID-19 [13] Question: How are U.S. sales progressing amid COVID-19? - Dealerships are ready to distribute Kandi EVs, but operations are delayed due to the pandemic [15] Question: When will Kandi get off the PCAOB non-compliant list? - The new auditor Marcum is expected to provide access to auditing information, which may help Kandi get off the non-compliant list within six months [20][22] Question: What is the status of the equity swap with Jinpeng? - The equity swap is being discussed, and if implemented, it will not significantly dilute Kandi's ownership [46] Question: Will the next model use quick battery exchange technology? - The next model will include quick battery exchange technology, but not necessarily from Ankao [34][32]