Kandi Technologies Group, Inc. (NASDAQ:KNDI) Q2 2019 Earnings Conference Call Transcript

Aug 09, 2019 • 08:00 am ET

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Kandi Technologies Group, Inc. (NASDAQ:KNDI) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day and welcome to the Kandi Technologies Second Quarter 2019 Financial Results Call. [Operator Instructions] At this time, I'd like to turn the conference over to Kewa Luo, IR Manager. Please go ahead.

Executive
Kewa Luo

Thank you, Jenny. Hello, everyone, and welcome to Kandi Technologies Group Inc.'s Second Quarter 2019 Earnings Conference Call. The Company distributed it's earnings press release earlier today, and you can find a copy on Kandi's website at www.kandivehicle.com.

With us today are Kandi's Founder, Chairman, and Chief Executive Officer, Mr. Hu Xiaoming; and Interim Chief Financial Officer, Ms. Zhu Xiaoying. Mr. Hu and Ms. Zhu will deliver prepared remarks followed by a question-answer session.

Before we get started, I'm going to review the Safe Harbor Statement regarding today's conference call. Please note that the discussions today will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Company's results may differ materially from views expressed today.

Further information regarding these and other risks and uncertainties are included in the Company's annual report on Form-10 K for the fiscal year ended December 31st, 2018 and in other documents filed with the US Securities and Exchange Commission. Kandi does not assume any obligation to update any forward-looking statements, except as required under applicable law. As a reminder, this conference call is being recorded. In addition, a audio webcast of this conference will be available on Kandi's Investor Relations website.

I will now turn the call over to Kandi's Founder, Chairman, and Chief Executive Officer, Mr. Hu Xiaoming.

Executive
Xiaoming Hu

[Foreign Speech] First of all, hello, everyone. Thank you for joining our second quarter 2019 earnings conference call. Due to the suggestions I have received from a lot of shareholders, I'd like to make some changes to our conference call. As the information we have already disclosed in the news and 10-Q, I'm going to skip those, including the CFO's remarks, so this way I can leave more time to talk about some new comments that we haven't talked about in the news and leave more time for the shareholders to ask questions.

[Foreign Speech]

The second quarter is still not very satisfying because of the JV company's pending restructuring. This caused the loss of the JV company and which resulted in Kandi's overall loss. However, Kandi's traditional business such as EV parts and off-road vehicle sales I believe that they have achieved very good results during this quarter.

[Foreign Speech]

In the first half, because of the restructuring of joint venture, as a result Geely is becoming the controlling shareholder with about 78% equity stake in the joint venture. So Geely has started with business plan refining and updating all our -- all the JV's EV models to accommodate the new subsidy policy that government has come up with. If we continue to produce and sell the original models the result is going to be losing more money. So that's why right