Off of the private Kandi Board.....
I spoke with Kewa for about 20 minutes yesterday (Wednesday). Here’s what she told me…
- For the first half of the call - she explained that sales and deliveries are not necessarily the same thing. For instance, the sale of 1,000 EVs to a city can proceed the actual “delivery” of same EVs. She said that EVs are only considered "delivered" when they are “ready” for the CarShare program or to be leased. In order for this to happen - ZZY must complete the inspection process and acquire a License plate for the EV before it is considered a delivered EV.
But, for the second half of the call - she seemed to change her mind - saying that the sale and delivery of EVs by the JV was practically the same thing (or real close to it). I was left kind of confused. I told her that it should be SALES numbers (not Delivered, or Produced EVs) that are PR’d. And that we should be provided with beginning balances - so we can easily figure out 4th quarter and 2014 total EVs sold by the JV.
She also said that…
- The delivered EV numbers in the PR include back to July, 2013.
- The delivered EV numbers in the PR include BOTH CarShare and Leased EVs.
- That the province that Chengdu is located in - has a law requiring that a local car dealership company needs to take ownership of the EVs before they are leased out by ZZY. So this is the way it works there … The JV sells an EV to the Local dealership company who sells it to ZZY who then either puts it into the CarShare program or Leases it out. So, it appears that ZZY is still MANAGING the CarShare and Leasing programs in ALL of the cities still.
I also called her again and left a voicemail - asking her to call me back regarding 4Q EVs sold by the JV. Regarding….
A PR issued on 9/29/2014 (basically the end of the 3rd quarter) states that so far 5,406 EVs have been DELIVERED to HANGZHOU.
Mr. GongZheng Emphasized the Importance of Customer Service And The Promotion of Accelerating Renewable Energy Automobile Industry DevelopmentWhile Visiting the CarShare Project[2014-09-29]
The JV Company, through its 19% equity interest in Zhejiang ZuoZhongYou Electric Vehicle Service Co., Ltd., launched the CarShare Project at Xihu District and has so far DELIVERED 5,406 pure electric vehicles to the project.
Yesterday’s PR states that at the end of 2014 a total of 9,852 EVs have been delivered to HANGZHOU. This means that 4,446 EVs were delivered to Hangzhou during the 4th quarter. Which alone is more than the 3,057 total JV EVs we were deducing.
If you add in all of the new cities on top of this it adds up to 8,784 EVs in the 4th Quarter - which is what Bill comes up with below…...
I’ll let you know what else I find out from Kewa…..
Rich
-
On Jan 7, 2015, at 6:58 PM, billx@unforgettable.com [KNDI] <KNDI@yahoogroups.com> wrote:
> I emailed Kewa for clarification as follows...
>
> Hi Kewa,
>
> Your investors took the great information you provided in today's PR and tried to figure out what the Q4 EV unit sales were and came up with many conflicting answers. Q4 EV unit sales are a critical number affecting stock price and the ongoing battle with shorts. Below is a spreadsheet to help define the problem...
> PR
> SEC Filing
> 13FY
> 14Q1
>
> 1,215
> 08/18/14
>
> Shanghai
>
> 208
> 14Q2
>
> 4,114
> 09/29/14
>
> Hangzhou
>
> 5,406
> 14Q3
>
> 1,950
> Q3 Cumulative Total
>
> 5,614
> Q3 Cumulative Total
>
> 7,279
> 01/07/15
>
> Hangzhou
>
> 9,852
> 01/07/15
>
> Shanghai
>
> 686
> 01/07/15
>
> Chengdu
>
> 1,020
> 01/07/15
>
> Nanjing
>
> 340
> 01/07/15
>
> Guangzhou
>
> 700
> 01/07/15
>
> Wuhan
>
> 612
> 01/07/15
>
> Changsha
>
> 388
> 01/07/15
>
> Changzhou
>
> 500
> 01/07/15
>
> Ruao
>
> 300
> Q4 Cumulative Total
>
> 14,398
> Q4 Cumulative Total
>
> 14,398
> Q4 = Q4 CT - Q3 CT
>
> 8,784
> Q4 = Q4 CT - Q3 CT
>
> 7,119
>
>
> Taking the PR data we show that the Q4 EV sales were 8,784.
>
> Taking the SEC Filing data we show that the Q4 EV sales were 7,119 if the Jan 7 PR total is for 2014 sales.
>
> If the Jan 7 PR total is for 2013 and 2014 Q4 EV unit sales will be <7,119. We have a problem calculating because we can find no record of how many EVs were sold into car-share in 2013 (???? in table above). In 2013 Kandi sold 4,694 EV Products (sometimes defined as complete sets of parts) and not all were sold to the JV. Of those sold to the JV, some will have been resold to car-share in 2013 and some resold to car-share in 2014. JV sales in 2013 were $15,212,347 corresponding to about 800 EVs.
>
> Please advise the number of EV unit sales for Q4 2014. If it is different from the 8,784 EV unit sales indicated by the PR data, please explain.
