Greetings, and welcome to the Kandi Technologies Q3 2023 financial results call. At this time, all participants are in a listen-only mode. A brief Q&A session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kewa Luo. Kewa, you may begin.
Thank you. Hello, everyone. Thank you all for joining us on today's conference call to discuss Kandi's results for the third quarter, 2023. Earlier today, we issued a press release covering the results. You can find the press release on the company's website as well as from newswire services. On the call with me today are Mr. Xiaoming 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. 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 conference call are in U.S. dollars. With that, let me now turn the call over to our CEO, Dr. Xueqin Dong. Go ahead, Dr. Dong.
[foreign language] 大家好，欢迎参加，欢迎大家参加今天的会议。下面我向大家介绍一下公司第三季度的基本状况。在我们成功地从2023年上半年的亏损转为盈利后，公司第三季度实现了持续盈利，这进一步证明我们的产品转型取得了一定的成果，也证实了我们近年来所做的战略调整，为我们在纯电动非公路车市场的成功开创了一条新的发展大道。通过全体员工的共同努力，公司前三季度累计净收益约为$6,260,000，每股收益为$0.08，相比于2022年同期的净亏损约为$2,420,000，每股亏损为$0.03。所以相比2022年，2023年已取得明显的改善。Kewa Luo.
Hello, everyone. Welcome to our conference call today. I will begin discussing some of the highlights in the third quarter. In the wake of our successful transformation from a loss to a profit in the first half of 2023, our continued profitability this quarter underscores the positive outcomes we have gained from our product transformation initiative. These profitable operations serve as a testament to the strategic adjustments we have made in recent years, which have paved the way for our success in the fully electric off-road vehicle market. Through the collective efforts of all employees, our company achieved a cumulative net income of approximately $6.3 million during the first three quarters, with diluted earnings per share of $0.08.
This marks a significant improvement compared to the net loss of approximately $2.4 million, or diluted loss per share of $0.03 for the same period in 2022.
[foreign language] Our SC company acquired the Northern Group, through utilizing their extensive sales expertise and distribution channels, further strengthening our sales channels. This strategic move enables us to further consolidate our position in the market. As we recently announced, as evidenced by the partnership with a U.S. agriculture and furniture retail giant Rural King, they are opening up and cooperating with more supermarkets for the company, delivering products to a wider customer base.
Our subsidiary, SC Autosports, finished the acquisition of the Northern Group. This further enhanced our sales pipeline by leveraging their extensive sales expertise and distribution channels. This strategic move enabled us to further solidify our position in the market, as demonstrated by our recently announced partnership with Rural King, a giant in the American farming and home retail industry. They are helping us expand by working with more stores, delivering our products to a broader customer base.
[foreign language] 另外，我们最近在一场面向独立农场、牧场和家居零售商，零售商网络的贸易，贸易展览会上，展示了我们的新型纯电动非公路车辆。...
[foreign language] And received a lot of positive feedback, which further enhanced our influence in various distribution channels. And to enhance SC company's marketing capabilities, in the third quarter we purchased another 75,000 sq ft distribution center in Texas and put it into use. This measure will greatly enhance our marketing capabilities in the United States. Kewa.
In addition, we recently displayed our new fully electric off-road vehicles at the Mid- States Rendezvous , a trade show that facilitates vendors access to a large and influential network of independent farm, ranch, and home retailers. We received positive feedback and further enhanced our presence across various distribution channels. Moreover, to foster at SC Autosports marketing capabilities, in the third quarter, we purchased a 75,000 sq ft shipping center in Texas, which is now operating. This move will significantly boost our marketing capabilities in the United States.
[foreign language] 展望2024年，我们的主要重点仍然是扩大我们在北美市场的占有率。Kandi对创新的承诺和对品质的承诺，使我们处于一个有利的地位，能够充分利用该地区日益增长的对纯电动非公路车需求带来的巨大市场潜力，并从中获得机遇，从而实现持续增长。另外，我们还将努力开拓全球市场。对此，我们有信心，2024年的产销在今年基础上会有大幅的增长。Kewa。
As we look forward to 2024, our primary focus remains to expand our presence in the North American market. With Kandi's commitment to innovation and quality, we are positioned to meet the increasing demand for fully electric off-road vehicles, unlocking substantial growth, potential, and capitalizing on opportunities. Additionally, we are committed to entering global markets and are confident that our production and sales in 2024 will experience substantial growth compared to the current year.
[foreign language] 那么现在开始问答环节，我和胡晓明董事长将回答大家提出的问题，科娃和林正明先生会对英文的问题提供翻译，请大家开始提问。
Now, we will move on to the Q&A session. Chairman Hu Xiaoming and I will answer your questions, and Miss Kewa and Mr. Alan Lim will provide translation for English questions. Please go ahead and ask your questions. Operator, please go ahead.
Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. Our first question comes from Michael Pfeiffer, from Oppenheimer and Company. Michael, please proceed.
Hi, thanks for taking my question. A lot of Wall Street pundits have been warning U.S. investors away from China stocks as well as electric automakers, likely the cause of Kandi's poor stock action these last few months, in spite of consecutive impressive jumps in quarterly performance. In reality, from a purely operational and cash management view, management looks brilliant in both selling its legacy Jinhua facility for $60 million cash profit, plus a government subsidy to build a new replacing facility, and selling its China-based EV auto JV Fengs heng interest to former partner Geely for an additional $40+ million profit, both just as the COVID epidemic began slowing China's economy. The JV sale to Geely looks particularly smart, since Fengs heng has not shown up in the China media for years and seems to now have been terminated.
Maybe just translate that and let's get to my questions.
Okay, thank you. [foreign language] 这个问题的呢，先是说一下，他说，现在看起来很多华尔街的，专家都在警告美国的市场，就是不要去购买中国的股票，以及电动汽车制造商，这类股票，这呢，可能是造成康迪在过去几个月股市，股价走势不佳的原因。从季度的业绩的连续，跌升来看呢，管理层在三年前的股灾前，将这个中国的电动汽车的业务出售给了吉利，为此也获得了丰厚的利润。尤其是我们看到吉利康迪合资的那款丰盛，已经很久没有在，任何中国的电动汽车网站上搜索中了，所以这是一个很成功的举动。Go ahead.
Okay, thanks. My question to management is to confirm or reject a theory that should clearly set Kandi apart from both the EV and China investor concerns mentioned before. The theory is Kandi, with its new direction away from EV autos back to its decades ago export legacy off-road business, is in the best of both worlds, particularly since it no longer does have to rely on the internal sales in China. Kandi is a conglomerate manufacturing in-house 90% of all parts for its electric fleet, including chassis, body parts, motors, lithium batteries and BMS. In China, where the economy and employment has slowed, along with multi-year lows on commodities like copper, on rare earth minerals, then ships the vehicles on containers, also at multi-year low prices to the U.S., where the economy is much better.
There is a significant demand for low-cost electric transportation. It is no wonder Kandi's CEO has predicted gross margins in the 38% area. If you could just translate that then. Two small-
Okay.
More thanks.
Uh, [foreign language]
Does management agree with the stated observation? Is Kandi aggressively attempting to expand its global exposure? And if so, which markets do you expect to add over the next 12 months?
Kandi, [foreign language] is that all your question?
I have one more after that, but I'd like to hear his answer to that.
Okay. [foreign language]
So thanks for your question. First of all, there are distributors in certain countries that are now test selling our products. The company estimates that within the next 12 months, there will be more supermarkets that are gonna selling our products in the United States. And, we expect there will be also be certain new sales in Europe and other regions. Thank you.
Out of existing facilities, what would be the capacity for the bigger ticket items like golf carts, UTV, ATV, et cetera, using multiple shifts? Any big surprises over the next few months, and if so, what? Thank you.
Uh, [foreign language]
So, regarding our production capacity, as long as there's a market demand, our production capacity can meet the needs. And then the company estimate, you know, there will be certainly some surprises in the coming months. So please pay attention to the information we're gonna release. Thank you.
Thanks.
Thank you.
Our next question comes from Joel Kramer, who is a private investor. Joel, please proceed. Oh, I apologize. The next question is from Mark Canell. Mark, please proceed.
Yeah. Hi, good morning or good evening, wherever you are in the world. While the last company conference call alluded to global expansion, we have seen no press release or 8-K confirming our rollout has begun. Case in point, so it appears it has. Over the past months, a deep dive in the Internet came up with some interesting findings. First, the discovery of a major U.K. dealer, EV Shire UTV, began selling the Kandi E10 Cowboy under their brand name, Shire Mach Max EUTV four-wheel drive. However, Shire is selling their models for twice as much as in the U.S., for $28,303, including VAT. Then soon followed by distributor Fairway EV Limited, that states they are U.K.'s leading importer of high-quality electric vehicles....
serving the whole of the UK, Republic of Ireland, and Portugal. They also offer the Kandi brand side by side Cowboy E10, and shortly thereafter, another discovery of a distributor in Austria, WAT Handels GmbH, that claims as of the 20th of October 2023, has a large stock available of Kandi Cowboy E10 at EUR 19,900. That's about $21,300 plus VAT. Kewa, if you can first translate this and then I come to my questions.
Thank you [foreign language]。这个问题的意思是，尽管最近的Kandi电话会议，都提到了全球扩张，但是我们还没有看到任何的正式新闻稿或者SEC的8-K文件来确认，这一项扩张的计划已经启动。举例来说，在过去的一个月里，我们在互联网上能够搜索到一些信息。首先我们发现了一家英国的经销商叫EV Shire UTV，他们正在销售一个品牌为Shire Mach Max EUTV 4x4，除了在board上带有Kandi的名称之外呢，它明显就是Kandi的那款E10 Cowboy。在美国呢，这款车的售价是$13,999，而出售的这个同款车呢，却要贵两倍，售价为，包括税在内，$28,303。接着呢，我们还发现了一个叫Fairway EV Limited，他们自称为英国领先的高品质电动车进口商，服务范围覆盖了整个英国、爱尔兰共和国和葡萄牙。显然作为分销商的话，他们也提供了相同的车型，以Kandi的这款E10 Cowboy品牌销售。不过他们的网站上呢，就是没有标明这个具体的价格。不久之后呢，我们还发现奥地利的分销商，一个叫WAT Handels GmbH，他们声称截至2023年10月20日，有大量的Kandi E10 Cowboy的库存可供购买，然后售价呢，是EUR 19,900。请继续你的问题。
Here are my questions. First, in the US, it appears the feature pack Kandi Cowboy side-by-side is being retailed at $13,999, and incredibly cheap compared with the Polaris Kinetic Premium at $29,900. So only a 10% larger lithium battery with a higher speed, but less range. Most edition specs about the same. Is Kandi using the Cowboy at this very low price as a door opener to dealers for subsequent Kandi off-road product? As in the case of the European dealers, they must have added a huge margin built in their final price. And second, is the company planning on ever announcing the opening of a new international location in the future to shareholders, which Kandi's website will carry these global locations? And third question is, how is Kandi handling the international expansion?
Does it have growth projections and possible countries for this sector over the next year? The fourth and last question. Lastly, since-
I'm sorry。
Yeah, okay, then go ahead. [crosstalk]
Yeah, I'm sorry. Can you slow down? Can you just start with your first question? Let's do one by one.
Okay, we go, we go one by one then.
Yeah, please, just the first question. [crosstalk]
Yeah. In the US, it appears the feature-packed Kandi Cowboy side-by-side is being retailed at $13,999, an incredible cheap price compared to the Polaris Kinetic Premium at $29,900, so only 10% larger lithium battery with a higher speed but less range. Most edition specs about the same. Is Kandi using the Cowboy at a very low price as a door opener to dealers for subsequent Kandi off-road products? As it is in case of the European dealers, they must have added a huge margin built in their financial price.
[foreign language] Okay, his first question is to put our Kandi car and Polaris's similar model in the US together to compare; actually they are similar. But our car is much cheaper. Are we using this E10 Cowboy car to enter the US market with its price advantage and the same similar quality as US brands to gain favor in the US? Then at the same time, we also found that in the European market prices are very expensive. Then we use this low price to let them obtain higher profit value, and thus we can also smoothly enter the European market.
[foreign language] 这个是这样，就是我们主要这个产品，因为是美国设计师，设计主要是在美国市场，所以美国的价格呢，我们是比较合理，也是比较低的。...
但是现在很多欧洲客户也看中了这款产品，所以我们卖到欧洲去呢，价格会高一点。但是他们呢，我们在美国卖呢，是直接通过我们ICC公司，去直接超市或是经销商在卖，所以它的价格还是比较合理的。那么欧洲的经销商呢，他赚钱就赚得比较多了，所以他就卖得比较贵，产品是一样的。
So as for the questions, first of all, the models we're selling in U.S. and the models we're selling in Europe, they are the same. Then, the reason why, the price in U.S. is rather lower, because right now U.S. market is our main focus. We try to tackle the more, the market occupancy, that's why we try to lower the price. Plus, we are selling through our U.S. subsidiary SC Autosports, that have a less, you know, layers of the channel distributors. And of course, you know, the price will be considerably less. In Europe because there are certain markup by our distributors in Europe, that's why the price is higher. Hope that can resolve your question.
Yes, thank you for that. And then the second question, is the company planning on ever announcing the opening of new international locations in the future to shareholders? Because right now, we only know these kind of things happening because we search the Internet, and that's not so shareholder-friendly. But, and if they do, which Kandi website will carry these global locations then?
[foreign language] 公司计划就是正式向美国的投资者、美国市场宣布公司进入这些新的国家吗？因为我们获取这些信息并不是从公司官方网站来获取的，我们都是通过搜索网络去获取这些知识的，获取这些信息的，所以这对于我们来说很不，很麻烦。如果公司来正式宣布这些信息的话，我们将会可以，可以在什么网络上面获取公司在全球的点，在，以什么样的方式来告知市场这些信息？
[foreign language] 目前我们在全球，都有推广我们的纯电动非公路用车，但目前都还是处于一个初级阶段。刚才说的以上的这些经销商，目前还只是购买了我们的样车，并在试销阶段。到时的话，我们会公布一些相关的详细的信息。谢谢。
Currently, we are trying to promote our pure electric off-road vehicles around the world, but it's still in a rather early stage at the moment. Those dealers you mentioned above have only purchased certain of our vehicle prototypes, and they are in the test selling stage. So, please stay tuned. We'll definitely keep, you know, the market and the shareholders posted with further update.
Okay, thank you. Then my last question is, since you are selling the Cowboy so cheap, and it appears to be perfect for independent dealers, is Kandi going to hold back the Cowboy from Lowe's, Walmart, and Amazon, and use as a bait to expand its independent dealers network?
[foreign language] 由于你，把这款就是，Cowboy一时卖得这么便宜，你有想过就直接在亚马逊上面去卖吗？然后把这作为一个诱饵，去吸引更多的这些独立的经销商。
[foreign language] 这个，我们，一个是通过我们的经销商，一个是通过现在是Lowe's在卖，但是，现在在谈，也有好几家超市准备卖我们的车，但这个价格，也就是统一的，这个不会乱。我们认为我们的价格是个合理的价格，嗯，这是一个合理的价格。
So in the U.S. market, we are selling our products through different type of the distributors on different channels, and of course, through the supermarket Lowe's. We are discussing with certain other new supermarkets at the moment, but then the price will be consistent all over different channels and in a considerable, appropriate, reasonable level. Thank you.
Thank you for taking my questions.
Our next question comes from Joel Kramer, a private investor. Joel, please proceed.
Yes, thank you. It seems to me that the most bullish press, the recent announcement of the purchase of a new 75,000 sq ft distribution facility in Dallas suburb, Garland, adding to its 2021 purchase of its first 50,000 sq ft facility just a few miles away in Dallas. If correct, the initial facility, though having 50,000 sq ft, is also being used as its headquarters, sales, marketing, support, and showroom. I would assume that would only have left maybe 30,000 sq ft for assembly and distribution. Yet this year, we should see some 20,000 or more units assembled and distributed from the original 30,000 sq ft.... Should I continue, Kiwa?
OK, let me translate first.
Okay。
His question, he said: The recently released press release, which is about announcing that we purchased a 75,000 sq ft sales and distribution facility. This is a very, very optimistic indication for Kandi's future. This measure is another important step following our purchase of the first 50,000 sq ft facility in 2021, and these two facilities are in Dallas, Texas, and are not far apart.
According to my understanding, the initial facility, although it has 50,000 sq ft, was also used as the U.S. headquarters sales market, support for all aspects of the company and showroom. I guess that perhaps only 30,000 sq ft can be used for assembly and distribution. Please go ahead.
Thank you. The additional 75,000 sq ft for pure distribution and assembly could theoretically increase capacity by 150% or to some 50,000 units. And in the same press release, the CEO of Kandi America also said: "We now intend to drive growth through geographic penetration across the U.S. Additional distribution centers will be key to filling demand in a timely and cost-effective manner." So my questions are: One, am I interpreting the content of that recent press release along the line of management's thoughts? And if so, is it safe to assume if this capacity is reached over the next two years, revenues approaching $500 million could be feasible?
Okay, let me translate so far.
Okay。
That additional 75,000 sq ft will be used for pure distribution and assembly. Theoretically, it is possible to increase capacity by 150%, equivalent to 50,000 units. Then, in the same press release, the Kandi America CEO also stated that the company plans to further expand in other regions of the United States. Therefore, my question is, did I correctly understand the content of this press release? If that is the case, I think, can I consider that this capacity can be achieved in the next two years, that is to say, the company's revenue will approach $500 million? Is this feasible?
[foreign language] So, we bought a new distribution center in Dallas to increase our sales capacity. So, with these basic conditions, our sales in the United States will definitely have significant growth. So, within 2 years, sales revenue close to $500 million, so this is also our goal. Thank you.
So the purpose of purchasing a new warehouse in Garland, Texas is to increase our sales capacity, with the better fundamental ourselves in the States will definitely increase in a more significant manner. Our goal of the sales target is estimated to be close to $500 million within next two years. Thank you.
Okay, on a prior conference call, the CEO anticipated a continuation of Kandi's 38% gross margin through year-end. Does this still look to be realistic? And also, while it was just a small piece, Wall Street veteran growth investor Lewis Navellier included Kandi in a strong buy recommendation a couple of weeks ago, and projected a compound annual growth rate, CAGR, for Kandi of 25% from now to the year 2030. Could he be correct? Thank you.
[foreign language] OK, his second question is: In the previous telephone conference, uh, CEO predicted Kandi's gross margin will be maintained at around 38%, uh, until year-end. I want to ask if this is still, uh, achievable? Uh, in addition, a senior Wall Street growth investor named Lewis Navellier, uh, he a few weeks ago included Kandi in the strong buy recommendation list, and predicted from now to 2030, Kandi's compound annual growth rate will reach 25%. Ah, is this estimate correct?
[foreign language] 那个，我们二季度的毛利率是达到38.2%，那么一直九月份的毛利率是34.43%。那么到年底也预计在这个水平，30%以上是没有问题的，但这个要看具体情况。听到吗？
Okay。 [crosstalk]
[foreign language] 要看具体情况，整个变化，啊，这个从，从应该是问题不大。那另外这个...
[foreign language] ...叫分析师啊，这个叫什么Lewis，那个给我们估计，年增长率达到25%以上。这个我觉得，有些年份可能我们会大于这个，但是是不是每年平均这样，这就很难说，但是最近几年肯定是大 于这个。
So first of all, regarding our gross profit margin. Actually, in the second quarter of this year, the margin was 30.2%, and the average gross profit margin from January to September, nine months, was 34.3%. So it depends on the development of market and the conditions, it is estimated that the gross profit margin for the whole year, 2023, will be above 30%. And then regarding the estimate from Lewis Navellier, you know, we believe that, you know, in certain years of the foreseeable futures, we can meet or even exceed 25%. But of course, it's hard to tell if we can meet such target, you know, year in year out. So we will try our best to achieve, definitely. Thank you.
Thank you。
Our next question comes from Arthur Porcari from Corporate Strategies. Arthur, please proceed.
Thank you. Glad to see that this week Kandi America announced the Rural King, uh, hardware store chain with 130 stores, 13 states, calling it "a milestone for Kandi in strategic expansion," end quote. However, when Kandi added Lowe's, Walmart, and opened an Amazon store over this past year, though having already sold thousands of golf carts through these outlets, to date, Kandi has yet to even publicly announce any of these relationships, let alone call those mega relationships a milestone. It's hard to understand the logic behind Kandi's stealth growth business plan, hiding potentially $ millions of effectively free additional publicity for Kandi's new products, affecting dealers, consumers, and shareholders. Kewa, go ahead and give him that right now.
[foreign language] OK, he said, very happy to see this week that Kandi America published that they signed with Rural King, this company has 130 branch stores in the United States 13 states, such a big supermarket with stores. But, Kandi with Lowe's, with Walmart these collaborations, we all have not seen any announcements, that is its ...
就是很难理解公司背后的逻辑，为什么不去，利用到这些免费的这种宣传效应，通过公布和他们的合作来提高，提升公司的知名度，以及，销售的，就是销售，在销售上面的推动。
October, on a personal visit to Lowe's, I noticed some golf carts out front, not even knowing the Kandi was even making golf carts at that, at that time. I took a closer look, and to my surprise, I found the Kandi name and logo on the inspection plate. I posted this with pictures on the Kandi private chat. As most know, Lowe's is the nation's top retailer with 2,300 stores. I've been checking back with the product manager, who tells me the Kandi golf carts have been hot sellers in his store. This past August, one week after the last conference call, another member of our chat board discovered the world's top retailer, Walmart, with 4,600 stores, has just added Kandi golf carts to their online store, with free delivery, within 5 days. And curiously, both Lowe's and Walmart, at least for now, are offering Kandi golf carts exclusively.
A few days later, another stealth release of Kandi golf carts, this time through Kandi, opening its own store at Amazon. In each case, not only full line of golf carts, but also full offering of Kandi parts and accessories. But never a word from Kandi in the media about any of these three. Go ahead with that right now.
[foreign language] Um, at the end of October last year, when I went to Lowe's, at that time I saw there was a golf cart with our Kandi label. At that time Kandi hadn't made any announcement. Then, at that time I posted this photo to our private forum. Then a few months later, our other member on this forum also found a Kandi golf cart on Walmart's website. So at least from what we see now, we all at Lowe's and Walmart—these two, their websites, their stores have the company's cars, and it can be seen that they should be exclusive sales. So...
[foreign language] 然后，康迪的高尔夫球车呢，我们又发现，又再次呢，很私密地又登上了亚马逊的商店。所以，在这个每一种情况下，我们都是通过自己的方式，找到了这些信息，才知道康迪的这些产品在美国这个各大这些卖场在进行销售。
...Okay, while it, while it's no surprise to U.S. consumers and independent dealers that most golf carts are made in China, what could be a surprise is that Kandi Carts and other off-road vehicles that they're offering, as I think somebody already said earlier today, Kandi is a conglomerate that makes virtually 90% of each golf cart. But on top of that, it's also on NASDAQ, and that to me, is a big sales point. I doubt seriously if any of the other people out there that, that are making these golf carts are trying to compete with us and, and other similar type stuff, have been on NASDAQ for 15 years. Anyway, obviously, neither Lowe's or Walmart are trying to keep Kandi's name on the quiet, since each have numerous sponsored ads all over Google and other websites highlighting the Kandi brand along with their name.
And by the way, most of them have 4+ star ratings, which is a real compliment to the company. Okay, pass that on, and I'll, then I'll give my questions.
[foreign language] For American consumers and independent dealers, it's really not strange. Many of these golf carts are made in China, exported over. But what is surprising is, these are Kandi's golf carts, Kandi manufactured in China, because Kandi and other manufacturers are different; Kandi is a company listed on the NASDAQ in the United States, has nearly 20 years of history in the US. So no matter these few big retailers, ah, Lowe's, Walmart or Amazon, all are worth Kandi promoting prominently. Then we can also on Google or other places that place many ads online see Kandi's brand all have very high ratings, at least all are 4 stars, 4 stars and above, 4 stars and above. Um, go ahead with your question.
Okay, okay, here's my questions: Why has Kandi been hiding its special relationships with three of these top world's largest retailers? It would seem that something as simple as a Kandi public press release announcing affiliations and products would not only be greatly great publicity for Kandi and its stock price, but also drive new business from shareholders and others who see these news releases connecting to these retailers, giving even more comfort to prospective buyers, knowing that China's e-carts are from a longtime NASDAQ-listed company. Does this release of Rural King signal Kandi will once again start putting out more press releases on these type of new location openings?
[foreign language] 我就想知道为什么康迪要隐瞒，这些和全球最大零售商建立的合作关系。如果康迪能够公开发布这些新闻的话，发布跟他们的合作，然后，以及在他们的平台上卖这个产品，我觉得会对康迪带来非常卓越的宣传效果。不仅能够吸引股东，帮助股价，而且也能够吸引更多合作的零售商，带来更多的业务。所以我就想，我也...
当然我想问一下，就是最近康迪美国有发出，Rural King的合作新闻，那是否在以后康迪会逐渐的，会更加公开到市场，跟这些所签约的经销商的合作关系？
[foreign language] 那首先，我们没有隐藏什么，如果我们隐藏的话，各位就不会知道这些讯息。但是当我们要发布新闻的时候，我们也必须告诉我们的新闻内容相关的客户，并要取得客户的同意，我们才可以使用对方的名字出现在新闻稿里。如果客户，由于其他的考量，我们宁愿不发，也不愿意冒这个风险来发新闻，这也是我们之所以得到合作伙伴信任的原因，不能因为想借别人来获得自己的利益，而牺牲掉或者造成别人的不便。那么另外，沃尔玛和亚马逊目前都还在初级阶段，那么每个公司都有自己的一套方式来选择供应商和产品，但是通常都要六个月以上的市场测试才可以进入下一步。我们之所以未发布声明，就是秉着一个负责的态度，等到更加明确的方向后，才能够向大家报告。So first of all, definitely we are not hiding anything.
Not at all. It's just when we try to publish news, as you may know, we have to consider interests of other parties, like our customers or our partners. Sometimes, you know, those parties may have their own concerns, whether they are feel comfortable or they have any other thoughts for us to release the names in the press release. And sometimes because, if they don't want to do that, we will rather not publish than taking the chance or risk to do that. We definitely don't want to jeopardize our relationship with our customers and our partners. That is the reason why we gain the trust from our partners. We would not try to gain our own interest at the expense of other parties, and definitely we don't want to cause any inconvenience to the others.
So moreover, regarding the Walmart and Amazon, they actually are still in the rather early stage of selling our products. Six months of the market testing, the product testing, before they move on to the next step. The reason why we have not published those statements in the past is try to, you know, maintain a rather conservative approach. We want to wait until everything is clear, is concrete, before we make further news. So I hope you understand our approach. Thank you.
...Yes, that does make sense. And curiously, watching the Walmart website, they started out with just four carts on it. Now, as of about a week and a half, two weeks ago, now they have like all our products as far as golf carts. They have the six passenger on there. They've got the one with the dump trucks on there, plus they have a lot of our parts. So they've went from effectively four locations with, which you can click on, to now it's more up around 30-ish. So I guess that's a good sign that they feel like we're moving along pretty well. But anyway, let me get on to my next question here then. Let's see. Just two years ago, not much was happening, Kandi was putting out as many as 45 press releases a year.
Since that time, it appears that Kandi, the parent company, is no longer putting out much in the way of PRs other than financial releases. Instead, now, what PRs we are getting seem to be generated by Kandi America. But there seems to be some confusion in here. Both companies are using different PR reps and wire services, so many investors using Kandi are used to seeing on the Global Business Wire press releases, where Kandi America uses The Business Wire, so they don't necessarily show up in the same services. Considering Kandi, the parent, has both a VP of Investor Relations and, in my opinion, a worthless international PR firm, Blues hirt Group, why is Kandi now putting out less news now that it's growing exponentially?
[foreign language] 刚才你的解释呢，我觉得是有道理的，因为之前的时候看到，沃尔玛上面只陈列了，就是公司的4款车，然后呢，可以在4个它的商店里面可以去购买。然后呢，最近这几天我发现上面有了所有的康迪的车型，而且还有一些零件，然后能够取货的这个商店呢，也增加到了30家。所以我猜想，看到沃尔玛上面有增加的陈列商品应该是一个很好的迹象，说明他们会......
[foreign language] 很喜欢我们的产品。啊，我下一个问题呢，是想问，就是在2年前的时候，当时康迪的整个业务还没有太多动态的时候呢，反而每年呢，公司发布了多达45篇新闻。而之后呢，就是公司就非常的安静了，就每年除了发布一些要求的财务新闻稿以外呢，就没有太多其他的新闻。所以现在...
[foreign language] 现在很少的新闻是由康迪发出来，一些新闻呢，都是由康迪美国发出来，而这个是挺让人头痛的，因为康迪和康迪美国用了两家不同的通讯服务，康迪呢，用的是这个，GlobeNewswire，然后康迪美国用的Business Wire，所以使得很多跟踪康迪母公司的人呢，没有收到，就是，没有及时看到这些新闻。考虑到就是，其实康迪母公司、子公司都啊，用同样的康迪投资者，不在发布新闻稿上面更加积极一点呢？
[foreign language] 那么接下来，我们一直在战略调整，所以我们秉持少说多做的方式。那么接下来我们会改变相关的宣传方式，也会根据你们的建议，我们进行调整。谢谢。
In the past two years, we've adhered to the approach of few words, many deeds. Ongoing, we'll plan to refine, fine-tune our related publicity methods and make certain adjustments based on your suggestions. So thank you for your opinions.
Okay, just a couple last here. I am intrigued by your comment. I think it was your comment earlier for us to stand by for a big announcement. I guess you wouldn't want to share any more on that for now. So let me just go on to my last question, which I'd like to direct to Mr. Hu. Over the past few years, Kandi has bought back some 3.5 million shares in open market purchases. With this record growth spurt underway, cash of $245 million, which is, seems to be going up every quarter, or about $3 a share in cash, profitable, stock trading at $2 under book value and below working capital. Is management prepared to at least take a look at reinstituting possible share buybacks? To Mr. Hu.
[foreign language] 我这个问题呢，是专门是，希望胡总能够回答的。就是现在我们的这个股价远远的低于我们的这个，账面的价值，就是公司是否会考虑，我们再来进行公司回购股票这一举措？
[foreign language] 这个我们在考虑，接下来会有动作。
Yeah, we are considering this issue, and we will make action in appropriate timeline. Thank you.
Very good. Thank you very much, and really looking forward to that $500 million over the next two years. Thank you. Good job.
[foreign language] 他说感谢，他说非常期待着接下来，接下来的时间我们能够达到5亿的销售收入的到来。Hi, operator, do we have any additional questions?
It does not look like we have any other questions. So this will conclude our Q&A session. I would like to turn the floor back over to Kewa Luo for closing comments.
Thank you. [foreign language] Hu Zong, 我们 没有，问题了。
[foreign language] Okay, thank you. Okay, thank you.
Thank you again for attending today's conference call. If you have any more questions, you may contact us via email at ir@kandigroup.com. We look forward to updating you on our next earnings call. This concludes our call for today. You may now all disconnect.