Kandi Technologies Group, Inc. (NASDAQ:KNDI) Q1 2023 Earnings Call Transcript

Kandi Technologies Group, Inc. (NASDAQ:KNDI) Q1 2023 Earnings Call Transcript May 10, 2023

Operator: Good morning and welcome to Kandi Technologies First Quarter 2023 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. Please note that this event is being recorded. I would now like to turn the conference over to the Kewa Luo, IR, Director. Please go ahead.

Kewa Luo: Thank you, operator. Hello, everyone. Thank you for joining us on today’s conference call to discuss Kandi’s results for the first quarter 2023. Earlier today, we issued a press release covering the results. You can find a press release on the conference website as well as from newswire services. On the call with me today are Mr. Xiao Ming Hu, Chairman of the Board; Dr. Xueqin Dong, Chief Executive Officer; and Mr. Alan Lim, Chief Financial Officer. Dr. Dong will deliver prepared remarks in Chinese, which I will then translate. After that, we will have a Q&A session. Before we continue, please note that today’s discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve inherent risks and uncertainties. As such, the company’s actual 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. Please note that unless otherwise stated, all figures mentioned during the call are in U.S. dollars. With that, let me now turn the call over to our CEO, Xueqin Dong. Go ahead, Dr. Dong.

Xueqin Dong: Hello everyone. I’m the CEO of Kandi Technologies. My name is Xueqin Dong. Welcome to today’s conference call. Our first quarter revenue of 22.9 million was down slightly from one year ago due to the strategic shift in business focus. Over 90% of the revenue was attributed to steadily increasing sales of our off road vehicles and associate parts which nearly doubled year-over-year. The higher margins of off road vehicles boosted overall gross margin thanks to the strong growth process, we achieved positive net income for the quarter, a significant improvement from the loss experienced last year. Incorporating fully electric off road vehicles into our product line not only aligns with our values of environmental sustainability and social responsibility, but also positions us as a leader in the industry.

Therefore we are confident that our focus on this market will benefit us in the future. Our strong balance sheet and financial position put us in a unique position to capitalize on opportunities in this market and we are excited about the potential for growth. Looking ahead, we are committed to delivering innovative and sustainable solutions to meet the evolving needs of our customers and the market. Now we will move on to the Q&A session. Chairman, Hu and I will answer your questions. And Ms. Kewa and Mr. Alan will provide translation for English questions. Please go ahead and ask your questions. If you have any questions and asking questions, feel free to ask the operator.

Q&A Session

Operator: Thank you. [Operator Instructions]. Our first question is from the line of Mark McLaughlin, Private Investor. Please go ahead.

Operator: Thank you. Our next question is from the line of Kan Nau [ph], Private Investor. Please go ahead. Mr. Kan your line has been unmuted. Please go ahead with your question. Mr. Kan, now your line has been unmuted. You can go ahead with your question. As there is no response from the participant’s line, may I request the management that we move to the next question?

Operator: Our next question is from the line of Mike Pfeffer from Oppenheimer. Please go ahead.

Operator: Our next question is from the line of Walter Hill from Carty & Co. Please go ahead.

Operator: Thank you. Our next question is from the line of Arthur Porcari with Corporate Strategies. Please go ahead.

Operator: Thank you. That was the last question for our question-and-answer session. I would like to turn the conference back over to Kewa Luo, IR Director, for any closing remarks.

Kewa Luo: Thank you again for attending today’s conference call. If you have any additional questions, feel free to contact our IR consultant Blueshirt or via e-mail to contact me directly, ir@kandigroup.com. We look forward to updating you on our next earnings call. This concludes our call for today. Thank you. You may now all disconnect.

Operator: Thank you. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.