Kandi Technologies Group, Inc. Q3 FY2024 earnings call

• New management team has developed a detailed growth plan for 2025 to 2029, recently approved by the Board.
• All-electric off-road vehicle segment has potential; golf carts and other models are competitive, with partnerships like Lowe's and NFL-branded golf carts launched.
• Plan to establish U.S.-based production lines for golf carts, utility vehicles, and lithium batteries to support faster deliveries and better after-sales support near North American markets.
• Will expand internationally targeting growth in Southeast Asia, Middle East, Europe, etc., with a diversified product portfolio.
• Focus on growing in China's smart mobility sector, targeting the fast-growing segment and using expertise in battery swapping equipment and operations.
• Strong financial position with $260 million in cash, cash equivalents, etc., as of September 30, 2024, and a share repurchase program with 1,480,786 shares repurchased at an average price of $2.49.

Third quarter revenue was $29.9 million, down from $36.4 million in the same period of 2023. Nine months revenue totaled $89.8 million, a decrease of 5.7% year-over-year. Off-road vehicles and associated parts remained the primary revenue source in Q3, contributing $27.5 million, down 9.2% from the prior-year quarter, which accounted for 92% of Q3 revenue. For the first nine months, revenue from the off-road vehicles and associated parts segment slipped 1% to $81.5 million.

• The 2025 to 2029 growth plan includes establishing U.S.-based production for various products and expanding internationally.
• Share repurchase program is ongoing with shares already repurchased.
• Focus on leveraging technological innovation, enhancing product portfolio, and strengthening distribution network for growth.

• Trade tensions and global economic landscape pressures.
• Potential impact of tariffs on Chinese-manufactured vehicles, including golf carts.
• Stock price volatility and market uncertainties affecting investor confidence.

Q: Regarding analyst support and five-year forecast, how does Kandi plan to address getting sell-side analyst support and further guide investors?

A: The new management's five-year plan was developed with careful research, and guidance for future quarters will be disclosed in due course based on company development. Regarding analyst support, they will disclose information timely and consider market conditions.

Q: Concern about shareholders voting on authorizing new 10 million shares for stock option plan while stock is at 15-year low?

A: The equity incentive plan is to attract, retain, and motivate employees. Management understands shareholder concerns and will balance interests and evaluate optimal solutions for share buyback and equity structure.

Q: About autonomous driving and ride-hailing business and acquisition of Hangzhou Honghu?

A: Kandi has a plan for smart mobility solutions including car-hailing platforms. Due diligence on Hangzhou Honghu is ongoing, and no concrete agreement is in place yet. The business involves technology and operation services for transportation companies.

Q: Concern about stock price being at 15-year low despite bullish five-year forecast?

A: Multiple factors affect stock price, including U.S. election results and market uncertainties. The company's stock is seriously underestimated, and management is working on share buyback and other plans.