Kandi Technologies Group, Inc. (NASDAQ:KNDI) Q2 2020 Earnings Conference Call - Final Transcript
Aug 10, 2020 • 08:00 am ET
Greetings. Welcome to the Kandi Technologies Second Quarter 2020 Financial Results Call. [Operator Instructions] A brief question-and-answer session will follow the formal presentation. [Operator Instructions]
At this time, I will turn the conference over to Kewa Luo with Investor Relations. Please go ahead.
Thank you, operator. Hello, everyone. Welcome to Kandi Technologies Group, Inc. second quarter of 2020 earnings conference call. The company released the results earlier today and the press release is available on Kandi's website at www.kandivehicle.com. With us today are Mr. Hu Xiaoming, Kandi's Founder, Chairman and Chief Executive Officer, and Mr. Alan Lim, Chief Financial Officer. Mr. Hu will deliver prepared remarks, followed by a question-and-answer session.
Before we get started, please note that today's discussion will often 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 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.
As a reminder, this conference call is being recorded. In addition, an audio webcasting 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 CEO, Mr. Hu Xiaoming.
Thank you, Kewa, and hello, everyone. Welcome. Thank you for joining us on the call today. Despite the COVID-19 headwinds and the decreased consumer demand, our second quarter business results were satisfactory. We achieved $4.1 million in profit, and gross margin improved slightly to 18.2% versus 17.4% in the same period of 2019. Kandi is making progress and well positioned to bounce back due to our focused and aggressive effort. In second quarter, our effort was on preparation for the online car-hailing business, and EV sales in the US made a meaningful progress in these areas.
First, our fully automatic intelligent fast battery exchange system was delivered to the rideshare operator in Haikou City on August 7, 2020. Installation has been completed and will be put into trial operation shortly. With strong support from the government, battery swap stations are classified as infrastructure construction in China for the first time. We think that our fully automated smart replacement will be viewed favorably by the market and drive the sales of our electric vehicles.
Second, our American wholly owned subsidiary, SC Autosports made significant progress on preparing to launch EV sales in the United States while maintaining growth of off-road vehicles. We were excited to announce that our virtual launch will take place on August 18 to kick off presales, which will be a key milestone in the company's history. As a technology innovator, Kandi is committed to provide high-quality products with great performance and affordable price.
Let's now turn to the questions. In the interest of time,