Kandi Technolgies Corp (KNDI)

[bullmarket2222]

Posted: January 23rd, 2015 09:04 EST
Kandi China Article Paves Road to $1 Billion in EV Sales For 2015
This article (Link translated) came out yesterday in China revealing EV Sales Estimates from just one of
KNDI
s branded Five manufacturing Facilities expected to be in operation by the end of 2015 (three operating now). Below is the tile and just two key quotes from the article, which also covers a major KNDI specific meeting with top PRC Government officials regarding KNDI's EV CarShare (timeshare) program. Below the extracts and link, I have given a short explanation and extrapolation as to what reaching these targets could mean for both the JV and KNDI specific over the next three years.

"Condit electric vehicles (Changxing) Co., Ltd. in March 2013 formally put into operation in 2014 sales 640 million yuan, tax 3,000 million, "micro-bus" operating mode has been officially promoted in Hangzhou and Shanghai, more than a dozen cities, and by the State Ministry of Industry, Development and Reform Commission, Ministry of Finance, Ministry of Science and other ministries unanimously affirmed, is expected to be copied and promotion in the country.

The next three years, Changxing base development strategy will be implemented in stages, where in 2015 the target capacity of 15,000 to 20,000, sales are projected at 1.8 billion yuan; 2016 target capacity of 30,000, is expected to sell 30 billion yuan; 2017 target capacity of 50,000, is expected to sell (sic)50 million (Google translator error should read 50 billion)."
And a comment from CPPCC Vice Chairman and Minister of Science & Technology Wan Gang:

"CPPCC Vice Chairman, Science and Technology Minister Wan Gang, made an important speech, he Hangzhou "micro bus" mode affirmed, he pointed out, to build electric cars for urban public transport modes, the first market to live, with a more comprehensive policy system, Boot innovative business models, the use of electric vehicles more convenient and diverse, and constantly improve the application of the initiative. China's timeshare rental market has a huge potential demand, we want to nurture this new market growth through guidance and innovative business model, I see "micro bus" mode is likely to transform this potential into reality needs market. Real innovation must adhere to demand, promote mobile terminals and vehicle networking applications, create intelligent, networked, information platform, while encouraging enterprises to strengthen research and development, improve product quality, reduce production costs. Policy should be wide, efforts to promote infrastructure construction, solve puzzles charge pile construction. Bound to be strict, promote market competition, get rid of monopolies, the establishment of a unified and orderly electric vehicle production, application and service environment."
Link to the translated article
http://hvst.co/15x2TPK

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Explanation and Extrapolation of KNDI Projections on the above article:

The projections given in the article are for the 100,000 capacity JV Changxing China EV facility that only makes the 2dr SMA7000 projected to produce 15-20,000 EV’s for 2015, 30,000 for 2016 and 50,000 2017. The average sales price without the battery runs around $16,100(USD). Add around $5400 for the battery and you get the $21,150 average price reported earlier by the Company in prior Pr’s. So if reached, total sales per year would be around $323 mill to $430 mil 2015, $645 mil 2016 and $1.075 bil 2017 at the target levels.

Again, this announcement is from only ONE of four 100,000 capacity KNDI facilites making the smallest EV. The Shanghai facility which also has a 100,000 capacity exclusively making the 4 door will likely match the Changxing sales in units but at the currently higher reported price of $23,500 per car, or $353 mill to $470 mil for 2015, $705 mil 2016 and $1.175 bil for 2017.

KNDI also has 30,000 current capacity in its Jinhua facility. In just the last six months, the Company has already announced it will put a minimum of four new EV’s into production this year. It has been announce by the Company at the 2014 Annual Meeting that the two new 100,000 capacity Facilities in Rugeo and Wanning China will be operational in 2015. These other facilities will likely be making the new EV’s which are higher priced with the top being the Geely Converted “Luxury” E7 EV for Government and Fleet sales which is expected to sell for around $38,000.

With this China announcement today, I stand by my 2015 Estimate that JV revenues will reach $1 billion for this year up from $230 million for 2014. KNDI independent of the JV will be generating parts and battery sales of approximately 65% of JV sales or around $650 million PLUS it will receive 50% of the JV profits. So I expect KNDI to earn in excess of $2.50 a share for 2015.