We suffered a substantial decline in our results during the years 2007 through 2010. These results are demonstrated by the following table:




2007


2008


2009


2010

Assets


$2,586,000


$1,219,000


$ 823,000


$ 605,000

Liabilities


1,880,000


2,360,000


2,738,000


3,011,000

Stockholders’ Equity (Deficit)


707,000


(1,121,000)


(1,915,000)


(2,406,000)

Oil and gas revenue


56,000


98,000


31,000


30,000

Net loss from operations


(978,000)


(2,214,000)


(2,494,000)


(9,703,000)

In June 2008 Daniel H. Lloyd, Sr. Superior's president and a director – suffered a serious heart attack, collapsed on the sidewalk in New York City, fell into a coma, never recovered, and died in July. He was replaced by a retired, renowned geologist, Bill Sparks.

Hampered by a lack of capital and little income, our new management did not succeed in moving Superior forward. Our common stock traded in the over-the-counter market down to less than $0.01 a share.

In March 2010 two non-affiliated persons that, since 2006, had invested approximately $8 million in Superior's drilling prospects and also had arranged loans of approximately $140,000 to Superior for its working capital, threatened litigation against Superior claiming that Superior:?

• had misrepresented material facts in connection with obtaining these monies, and?

• had applied some of the monies to purposes of Superior unrelated to the drilling of wells.

Superior denied any wrongdoing. The parties negotiated and executed settlement agreements. The major provisions of the agreements were as follows:

• The two persons released Superior, its directors, officers and the Estate of Daniel Lloyd, Sr., deceased, from any and all claimed liabilities;

• Superior issued to the two persons 140 million shares of Superior's common stock – which shares, when issued, comprised nearly 75% of the outstanding common stock of Superior;

• To retain control of Superior in its management, Superior could amend its articles of incorporation to authorize 10 million shares of Series A Voting Convertible Preferred Stock, each share of which could cast 14 votes and also be convertible into 14 shares of Common Stock, and?

• Until the 10 million shares of Series A Preferred Stock have been authorized and issued and delivered to members of Superior's management, the recipients of the 140 million shares of common stock would only exercise the voting power of their shares consistent with the instructions of Superior's management.

Superior, a public company required to file periodic reports with the Securities Exchange Commission, for lack of funds, filed no reports subsequent to its Form 10-Q for the interim period ended September 30, 2010. (See below "Superior's Stock Market Problems")

In August 2011, Superior's president, Bill Sparks, died. The remaining directors elected Daniel H. Lloyd, Junior, the son of deceased Daniel H. Lloyd, Senior, to fill the presidency vacancy and to lead day to day operations.

What Delisting Means for the Company
When a stock is officially delisted in the United States, there are two main places it can trade:

Over the Counter Bulletin Board (OTCBB) - This is an electronic trading service offered by the Financial Industry Regulatory Authority (FINRA, formerly the NASD); it has very little regulation. Companies will trade here if they are current in their financial statements.
Pink Sheets - Considered even riskier than the OTCBB, the pink sheets are a quotation service. They do not require that companies register with the Securities and Exchange Commission (SEC) or remain current in their periodic filings. The stocks on the pink sheets are very speculative.

Delisting doesn't necessarily mean that a company is going to go bankrupt. Just as there are plenty of private companies that survive without the stock market, it is possible for a company to be delisted and still be profitable. However, delisting can make it more difficult for a company to raise money, and in this respect, it sometimes is a first step towards bankruptcy. For example, delisting may trigger a company's creditors to call in loans, or its credit rating might be further downgraded, increasing its interest expenses and potentially even pushing it into the red.

How Does It Affect You?
As a shareholder, you should seriously revisit your investment decision in a company that has become delisted; in many cases, it may be better to cut your losses. A firm unable to meet the listing requirements of the exchange upon which it is traded is quite obviously not in a great position. Each case of delisting needs to be looked at on an individual basis. However, being kicked out of an exclusive club such as the NYSE or the Nasdaq is about as disgraceful for a company as it is prestigious for it to be listed in the first place.

Even if a company continues to operate successfully after being delisted, the main problem with getting booted from the exclusive club is the trust factor. People lose their faith in the stock. When a stock trades on the NYSE or Nasdaq, it has an aura of reliability and accuracy in reporting financial statements. When a company's stock is demoted to the OTCBB or pink sheets, it loses its reputation. Pink sheet and OTCBB stocks lack the stringent regulation requirements that investors come to expect from NYSE and Nasdaq-traded stocks. Investors are willing to pay a premium for shares of trustworthy companies and are (understandably) leery of firms with shady reputations.

Another problem for delisted stocks is that many institutional investors are restricted from researching and buying them. Investors who already own a stock prior to the delisting may be forced by their investment mandates to liquidate their positions, further depressing the company's share price by increasing the selling supply. This lack of coverage and buying pressure means the stock has an even steeper climb ahead to make it back on to a major exchange. (See, What happens to my shares of a company that just received a delisting notice?)

The Bottom Line
Some argue that delisting is too harsh because it punishes stocks that could still recover. However, allowing such companies to stay listed would result in the major exchanges simply diluting the caliber of the companies that trade on them and degrading the respectability of the companies that maintain the listing requirements. Therefore, if a company that you own is delisted, it may not spell inevitable doom, but it is certainly a black mark on that company's reputation and, if the company can't recover, a sign of diminishing returns down the road.

On February 7, 2013 the SEC with the consent of Superior revoked the registration of our common stock with the SEC and the trading in our common stock in the public markets for our failure to file periodic reports with the SEC since the September 2010 required report.



We will make the necessary filing with the SEC to commence trading again in our stock as soon as we have the funds to pay the expenses of doing this. This includes auditor’s fees, which are expensive. We first received well production payments from Devon Energy in July 2014 and have not had available funds to commence the re-registration procedure in earnest. We will soon be able to do this. Our best prediction at this time is that trading in the stock could commence in early 2015.



We have 206,722,962 shares of common stock issued and outstanding, and 10 million shares of Series A Preferred Stock issued and outstanding (convertible into 140 million shares of common stock) making a total of 346,722,962 shares of voting stock issued and outstanding.

You have a timeline?

We're working years now.

BULL

Goldman Sachs (CH) EV Research Update Favors Geely due to KNDI JV...

(Excerpt from research note out today in China- You can get the link from my Stocktweet on the subject)

Automotive industry symposia / takeaways: Electric is the clear trend in the Chinese market

Category: Industry research institutions: Goldman Sachs Gao Hua Securities Company Limited Researcher: Yang Yipeng Date: 2014-11-26

"...Low-speed electric car companies and other enterprises are potential new entrants.

Because of the new energy vehicles (especially electric vehicles) require different competitive, we expect China's auto industry, potential new companies from entering the low-speed electric car companies (are rapidly upgrading its products and technologies) and other non-traditional businesses (as we visited an automotive design business plans to soon launch its own electric vehicles). Therefore, we expect the electric car market competition will be different from the current passenger car market.

The main components of the electric car companies most likely to benefit.

Because of the electric car will drive electric vehicle batteries, battery management systems, lightweight components, the demand for electric motors and other key components of the growth in car, so we believe that China's major parts manufacturers will benefit from the power of the trend. During the investigation, we also observed that these "early bird" parts enterprises are able to expand and technical preparation (acquired or self-developed) by producing a substantial growth in the future to actively preparing for new energy vehicles demand.

Motorized might reshape the automotive industry as a whole.

In our view, the electric car is the clear trend in the Chinese market, and may reshape the automotive industry as a whole; in our coverage, BYD / Geely (through its joint venture with Condit's) and other independent electric car leader in the most favorable position."

FAW bribe scandal underscores need for Beijing to dump mandatory JVs for foreign automakers
Yang Jian | 2014/11/28

SHANGHAI -- Beijing renewed a rule this month that foreign automakers seeking to build vehicles in China must form joint ventures with local companies.

But allegations of rampant bribery at China FAW Group Corp.'s joint venture with Volkswagen should provide an urgent wake-up call to the government to abandon the rule.

The government had hoped state-owned automakers would learn from foreign partners how to be more competitive. But the rule has done more harm than good.

Many Chinese automakers, accustomed to easy profits from their joint ventures, have no incentive to work hard and build their own brands.

So it should come as no surprise that none of them make money from their own operations.

Tianjin FAW Xiali Automobile Co., the small-car unit of FAW Group, reported a major financial loss this year.

The company, listed on the domestic stock market, warned last month that it might have lost 730 million yuan ($120 million) in the first nine months. It attributed the red ink to its inability to improve products to meet evolving consumer preferences.

If this isn't enough to persuade Beijing to annul its joint venture requirement, here is something more: Investigators have discovered what they believe to be widespread corruption within the 60-40 partnership between FAW and Volkswagen.

China's state-owned companies, protected by the government from market competition, are poorly managed and lack the rigorous internal controls of public companies.

Thus it's relatively easy for corrupt executives at state-owned companies to evade the watchdogs. And as we've seen at FAW-Volkswagen, alleged corruption can spill over from a state-owned company to its joint ventures.

In September, a task force from the central government launched an investigation of An Dewu, a former vice chairman of China FAW Group Corp.

View on tech.chedushi.com

http://tech.chedushi.com/%E5%BA%B7%E8%BF%AA%E7%94%B5%E5%8A%A8%E6%B1%BD%E8%BD%A6%E9%9B%86%E5%9B%A2%E7%A0%94%E5%8F%91%E7%9A%84SMA7002BEV05%E8%BD%A6%E5%9E%8B%E8%8E%B7%E6%89%B9%E8%BF%9B%E5%85%A5%E5%9B%BD%E5%AE%B6%E5%B7%A5%E4%BF%A1%E9%83%A8%E6%96%B0%E8%BD%A6%E7%9B%AE%E5%BD%95/

Preview by Yahoo
Condit EV Group developed SMA7002BEV05 models approved to enter the State Ministry of cars directory
Source: Condi EV Group
Author: Condi EV Group
Time: 2014-11-27
[REVIEW] According to the People's Republic of China Ministry of Information Industry in 2014 Notice No. 69, Condi Condi EV Group developed the upscale brand SMA7002BEV05 approved car catalog pure electric vehicles. Condit brand SMA7002BEV05 pure electric car is the production company and one of the products first batch of 266 cars MIIT issued, motorcycles, three-wheeled vehicles and low-speed vehicles, but also the Ministry of 63rd batch of energy-saving and new energy vehicle demonstration and application of recommended models of One. This means that consumers will be able to buy the car to get state and local government ...

According to the People's Republic of China Ministry of Information Industry in 2014 Notice No. 69, Condi Condi EV Group developed the upscale brand SMA7002BEV05 approved car catalog pure electric vehicles.

Condit brand SMA7002BEV05 pure electric car is the production company and one of the products first batch of 266 cars MIIT issued, motorcycles, three-wheeled vehicles and low-speed vehicles, but also the Ministry of 63rd batch of energy-saving and new energy vehicle demonstration and application of recommended models of One. This means that consumers will be able to buy the car get double car allowance state and local governments, as well as views of the relevant aspects of the license plate in the purchase of new energy vehicles and other tax incentives.

Li Keqiang

http://en.wikipedia.org/wiki/Li_Keqiang

Li Keqiang (pronounced [li` k??^t??j???], born 1 July 1955) is the current Premier of the State Council of the People's Republic of China. An economist by training, Li is China's head of government as well as one of the leading figures of Chinese economic policy. He is also vice chairman of the National Security Commission and second ranked member of the CPC Politburo Standing Committee, the de facto highest decision-making body of the country. Li is a major part of the "fifth generation" (Xi-Li Administration) of Communist Party leadership.

From 2008 to 2013, Li served as the first-ranked Vice-Premier[1] under then-Premier Wen Jiabao. During this tenure, Li's official portfolio included economic development, price controls, finance, climate change, and macroeconomic management.[2]

Li rose through the party ranks through the Communist Youth League. From 1998 to 2004, Li served as the Governor of Henan and the province's Party secretary, and then the Liaoning party secretary, an office that made him first-in-charge in that province.

http://finance.sina.cn/?sa=t74d14189283v39&from=wap&vt=4

2014-11-23 15:13 People
Review
People, Beijing, November 23 (Reporter Yang Fang) This is probably as great Prime Minister, Li Keqiang received the most "small" gift: a palm-sized, old rattle. This is the morning of the 20th Li Keqiang visited Yiwu International Trade City, an old merchant gave him. Old merchant said, the beginning of reform and opening up 30 years ago, she just shook it to rattle the street to "knock sugar" in exchange for a feather to compost.
But in the eyes of Li Keqiang, the gift was "very rare", "Yiwu spiritual enrichment." He said it should be donated to the National Museum.
This is the little rattle, Li Keqiang also interpret this visit Zhejiang "key." From scheduling point of view, on the 19th, he came off the plane, known as "the first village shop," said Liu Qingyan village the next morning to Yiwu International Trade is called "the world's largest small commodity wholesale market," the City, afternoon visit the first "National innovative Enterprise" Geely Holding Group.
If a different angle, you will find this arrangement much imagination: a village representative Liu Qingyan online virtual economy, international trade city represents the entity shop online and shop and line linkage, while Geely Automobile [microblogging] history of the China's economic transformation and upgrading of the microcosm.
Future development behind all this, not only related to e-commerce, a matter of traditional industries and the new format of the depth of integration industry, but also related to important issues of national innovation and upgrading industries. As Li repeatedly stressed on several occasions that, to build an upgraded version of the Chinese economy, and promote China's economy to the global value chain of high-end forward.
Select the first stop Yiwu, high hopes for new industry
Although only in Qingyan Liu village stayed more than one hour, nonstop Li Keqiang visited three shops. This three shops online virtual economy is linked chain. He first visited e-commerce company is a wholesale goods, followed by a sale of the child to wear shop, the last guy to chat with a courier company's "90" after.
From B2B, to C2C, then logistics delivery - Li Keqiang field research not only e-commerce business model, more importantly, he noted that this route to economic development, job creation has a very significant role. Every point to a study, Li Keqiang was not the first to ask the sales and other operating conditions, but the entrepreneur's identity and history, from rural or urban, is graduating from college, and so on.
Li Keqiang these questions quite deep. Although Liu Qingyan village population of less than 1,500 people in the book, there are 15,000 people working here in the electricity business, turnover in 2014 reached 40 billion yuan.
Family loading operations at that shop, the owner told the Prime Minister Yang Yaohui, after his graduation to start Qingyan Liu village. Although his shop opened only four months, sales has already reached 140,000 yuan. "This is a development spurt Yeah!" Exclaim Tao Li Keqiang.
In fact, this year, by the government to further increase streamline administration
The remaining text (1/4)

Dated back...

China Requires 30% of State Cars Use Alternative Energy


China is mandating that electric cars make up at least 30 percent of government vehicle purchases by 2016, the latest measure to fight pollution and cut energy use after exempting the autos from a purchase tax.

Central government ministries and agencies will take the lead on purchases of new-energy vehicles, a term that China uses to refer to electric vehicles, plug-in hybrids and fuel-cell autos, according to a statement on the central government’s website yesterday. The ratio will be raised beyond 2016, when local provinces are required to meet the target.

China is stepping up support for electric vehicles as demand lags behind its target because of consumer concerns over price, reliability and convenience. The government has identified EVs as a strategic industry to help it gain global leadership, reduce energy dependence and cut smog that often reaches hazardous levels in Beijing and other cities.

“This is a laudable aspiration,” said Yang Song, a Hong Kong-based analyst at Barclays Plc, who estimates that government purchases made up less than 10 percent of total new vehicle sales in China. “Government purchases are not growing as fast as private consumption. So just to rely on the government purchase would be a challenge.”

Last week, China announced the waiver of a 10 percent purchase tax for new-energy vehicles, excluding them from the levy beginning Sept. 1 to the end of 2017, the central government said in a statement posted on its website on July 9.

BYD Co. (1211), the electric automaker partially owned by Warren Buffett’s Berkshire Hathaway Inc., climbed 3.6 percent to HK$48.90 as of 11:47 a.m. in Hong Kong trading. The benchmark Hang Seng Index gained 0.4 percent.
Electric Vehicles

The measures announced yesterday by the National Government Offices Administration also direct agencies to give preference to all-electric vehicles in purchases, while cold-weather jurisdictions may consider plug-in hybrids. Electric sedans should cost no more than 180,000 yuan ($29,000) after subsidies.

Government organizations and public institutions will be required to add parking spaces reserved for new-energy vehicles and ensure the ratio of charging facilities to the vehicles is equal, according to the plan.

Local officials will be held responsible if the targets aren’t met, according to the statement.

To contact Bloomberg News staff for this story: Alexandra Ho in Shanghai at aho113@bloomberg.net

To contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net Chua Kong Ho, Brendan Scott

I stand by the fact that the "rightful" owner is in possession.

TIANNENG POWER: Announces New Energy Motive Battery Technologies and
the Commencement of the Automated Lithium Battery Production Line

(19 October 2014, Hong Kong) – Tianneng Power International Limited (“Tianneng
Power” or the “Company”), one of the leading electric vehicle motive battery
suppliers in China, together with its subsidiaries, (the “Group”) (stock code:
819.HK), has hosted the China New Energy Electric Vehicle Industry Summit at
Changxing County, Zhejiang Province, known as the “motive battery capital” of
China, on 17 October 2014. Tianneng Power has also introduced new technologies
for new energy motive batteries at a press conference, and held ceremonies for
the commencement of the automatic lithium battery production line and the
signing of a cooperative agreement.

The Group has collaborated with the Society of Automotive Engineers of China,
China Industry News, the China Bicycle Association, the China Battery Industry
Association and the China New Battery Technology and Innovation Alliance to
organize the Summit. The Summit has attracted more than 800 guests including
government officials, industry experts, representatives of electric vehicle
enterprises and financial institutions, and media. The participants have
conducted in-depth discussions on the current development and future trends of
the new energy electric vehicle industry in China.

The Fourth China New Energy Electric Vehicle Industry Summit

Themed “New State, New Driver, New Cooperation and New Responsibility”, the
specific issues highlighted at the summit included how to accommodate the new
direction of the economy, exploring new growth drivers, strengthening
cooperation within the industry and the fulfillment of new responsibility by
enterprises. The new energy car and electric bike enterprises have also
discussed topics including how electric cars in China can capture
opportunities to achieve further development and how electrical bikes can
overcome the bottleneck and stand out among the competition. The management of
new energy car enterprises including Chery, Kandi, Shifeng, Tangjun, Northern
EK Chor, Yintai Auto, Baoya, Fulu Motor, Rainchst Auto, Daojue, Saichi and
Levdeo have conducted detailed exchanges covering the areas of policies,
technologies and partnership.

Mr. Zhou Heliang, Former Director of the Electric and Industry Bureau, the

National Machinery and Industry Ministry and the Executive Committee Member

of the Electric Vehicle Association of Asia Pacific, said at the Summit,
“Low-speed electric cars are suitable for short-distance driving within
small-to-mid-sized cities surrounding the major cities and
second-to-third-tier cities due to their environmentally-friendly and safe
features and are affordable for most people. The accelerating urbanization is
driving the development of low-speed new energy cars. However, market momentum
and government support are also important in promoting the growth of the
industry. We also need to implement dual development of high-functionality
motive batteries and lead-acid batteries for new energy cars. Pollution
generated from lead-acid batteries is preventable and controllable. With a
strict lead-acid battery recycling system in place they will not pollute the
environment. Tianneng Power has achieved a used lead recycling rate of more
than 98%, setting a good example to lead the industry.”

Mr. Yang Yusheng, Academician at the Chinese Academy of Engineering, said at

the Summit, “The mini electric car is a new energy car targeting the mass
consumer market. It boasts the advantages of low battery power consumption and
thus can save energy and money. However, the technology of the new lead motive
batteries needs to be constantly improved. The current technology of the lead
battery is mature and safe, offering strong competitive advantages. The
lead-carbon motive batteries developed by Tianneng Power are a valuable boost
to the development of the electric vehicle industry.”

Press conference on new technologies for new energy motive batteries

Tianneng Power has also unveiled newly developed motive battery technologies
for

electric cars. The Group has developed three new technologies on motive
batteries

for new energy cars, highlighted by (1) a lead-carbon super battery with high

magnification which can enhance the capacity and durability of batteries; (2)
a fire and explosion resistant Graphene manganese-base lithium battery] which
can enhance the [gram volume and energy density; (3) the capability to conduct
smart examination and testing on the fixed timing and positioning of long life
cloud batteries for electric vehicles by using “Internet of Things”
technology. These advances were made possible by riding on the Group’s 28
years of experience in motive battery production and R&D, and its technology
platforms including the national-level corporate technology centre, the
academician expert workstation, the postdoctoral scientific research
workstation and the provincial-level corporate research institute.

The Group has also announced that it has secured three national invention
patents for lithium battery technology this year: (1) the preparation of nano
FePO4 with controllable grain size; (2) the preparation of nano LiFePO4 by
using hydrothermal-assisted microemulsion procedures; (3) the preparation of
electrode material for lithium, nickel, cobalt, manganese, vanadium and
oxygen. These new technologies and new patents can significantly improve
motive battery functions and thus the Group will extensively introduce the
technologies as procedures mature. So far, the Group has applied for more than
1,200 patents and has obtained more than 760 authorised patents, including 43
invention patents and 13 patents for national key new products.

Signing ceremony for cooperative agreement

Tianneng Power has entered into a cooperative agreement with the Zhejiang
Provincial Department of Public Security, Zhejiang Unicomand Ningbo Engville
regarding a long-life cloud battery project. The Group will also collaborate
with Nanjing University to build a joint laboratory for developing key
materials for lithium batteries. Besides, Tianneng Power has signed a
cooperative agreement with QUANTA Laboratories in Silicon Valley in the United
States for the testing and improvement of design of new energy motive
batteries. It is also working with Zhejiang University of Technology to
commence a project under the national science and technology support program.
All these partnerships will help to drive innovation and development of
Tianneng Power’s new energy battery business.

Automated lithium battery production line commences operation

The new motive lithium battery production line of Tianneng Power’s
wholly-owned subsidiary Zhejiang Tianneng Energy Technology Co., Ltd. in
Changxing, Zhejiang commanding a capital expenditure of RMB100 million has
commenced operation on 16 October 2014. The entire production process is fully
automated and advanced production techniques and quality control system have
also been introduced to shorten the production cycle, boost efficiency and
stabilize quality with the aim to achieve an industry-leading standard. After
full operation of the new lithium battery production line, the Group’s annual
production capacity of lithium batteries may increase five-fold to reach
1.25GWH. Products are mainly supplied to new energy car and electric bike
manufacturers.

Mr. Zheng Tianren, Chairman of Tianneng Power, said, “The emerging of the mini
electric car industry has driven the growth of related enterprises along the
industry chain, particularly the battery industry, the largest beneficiary
with a market of hundreds of millions of units. The rare earth silicon gel
batteries and super lead-carbon batteries developed by Tianneng Power, occupy
half of the mini electric car battery market share. Owing to the outstanding
performance of Tianneng Power’s batteries, the Group was the only enterprise
in the battery industry to be honored with the awards of ‘Outstanding
Contribution to Promote Development of Electric Vehicle Industry’ and the
‘2014 Excellence Award for Electric Vehicle Technology’ by the China National
Light Industry Council. Moving forward, Tianneng Power will continue to
enhance innovation capability, promote development of the mini electric car
industry and contribute to healthy and sustainable development of the new
energy electric car and battery sectors.”

Tianneng Group was founded in 1986 and locates in Changxing, Zhejiang province. The traffic access is so convenient that within 2 hours highway drive one can easily get to Shanghai, Suzhou, Nanjing, Hangzhou and other major metropolis. The company is specialized in the manufacture of all kinds of batteries as well as the new energy R&D, production, sale and service as a large enterprise.
After nearly 30 years' development, Tianneng battery has successfully consolidated the leading position in the industry with its unique technical advantages and special product technology. In 2007, Tianneng power was listed in Hongkong main board as the first stock of China motive battery. Tianneng Group has set up eight production bases in provinces of Zhejiang, Jiangsu, Anhui and Henan with total employees of more than 20000 till now. With powerful technology, state-level technology center, National Post Doctoral workstation, provincial academician workstation, Tiannneng got more than 700 national patents. It's products was named as ' the Best Chinese Motive Battery Brand' and ' the Most Customer Reliable Electric Vehicle Battery Brand' in 2009, and was listed as ' No.36th of top 500 global new energy enterprises in 2013 ', ' top 500 of China private enterprises,' and 'No.1 of top 10 China battery industry' for 10 years.
Tianneng Group mainly produce start battery, start-stop batteries (including AGM/ gel VRLA battery), electric bicycle / scooter / electric vehicle motive battery, solar / wind energy storage battery, high discharge rate UPS battery, lithium battery, Ni MH battery, etc.. These products are widely used in the fields of mobile power, emergency light, laptop, security, communication, electric power, navigation, railway, electric car, golf cart, sightseeing car, mower, sweeping car,cleaning robot, etc., Tianneng battery can provide customized products and support customers to establish their own distribution network.
As the leader of Chinese green new energy industry, Tianneng Group introduced international advanced equipments and technology and owns the most advanced battery production line. With excellent product quality and perfect after-sale service system, the company has passed ISO9001&ISO14001 and received many international recognitions including CE, CB&ROHS of European-Union, UL of America, BATSO of German and other international certifications. The products quality and service have been widely recognized by consumers at home and abroad.

The first batch of new energy electric buses operating in Changxing

Release date: 2014-11-20


Source: China Huzhou portal


Font Size: [ Big In Small ]

The total investment of 300 million yuan to the Group's lithium-ion battery production of new energy projects, with a total investment of 2 billion yuan in the steam zero (Eternal) Automotive Expo Center in Changxing ...... This year, the new energy automotive industry development Changxing good news continued.
By the end of October, led by the People's Government of Changxing County, Changxing County Road Transport Authority, Changxing Wanhong Motor Transport Co., Ltd. invested 20 million yuan to purchase the first batch of 10 electric buses unveiled Changxing, put into operation in the county 13 bus line . This marks the Changxing County will become the country's first use of new energy electric buses county-level cities. Currently, Changxing County, a total city buses 119, where LNG new energy buses 68, 10 pure electric buses, accounting for new energy buses to reach 65.5 percent, laying green vehicles in urban public transport vehicles in Changxing County dominance.
It is reported that Shanghai Ruihua Group is a technology provider of this batch of electric buses. November 2013, the success of Shanghai Changxing County Ruihua (Group) Co., Ltd. signed a Ruihua new energy automotive powertrain production base projects with a total investment of 3 billion yuan this project will be the introduction of electrical, electronic control, battery production line, which is manufacturing three core electric vehicles.
Chairman of Shanghai Ruihua Group Hong Yuan Shuai said: "The new energy vehicles is becoming the new direction of China's automobile industry, will break the traditional automotive energy dependence on oil, reduce environmental pollution and promote industrial restructuring and upgrading to start operating the first electric bus, so. further strengthened the confidence of businesses to invest in Changxing. "
It is understood that Shanghai Ruihua Group long-term commitment to environment-friendly new energy electric vehicle technology innovation and product development, is the world's first super capacitor technology in the transit bus company with new energy electric car battery + capacitor core pure electric vehicle powertrain systems, the combination of numerous domestic and foreign advanced technology, the technical level to fill the car electrical generation oil fields at home and abroad in the blank, to achieve zero-emission cars, pollution No noise goals, and take advantage of the low electric charge, the cost is only one sixth ordinary fuel vehicles, reached world leading level.
In recent years, Changxing County, always adhere to the "eco-superior county" strategic task, vigorously promote industrial restructuring, comprehensive environmental and energy structure optimization, especially in the fields of production, life, widespread implementation of photovoltaic power generation, non-electric air conditioning and other energy use technology, and actively promote low-carbon production and low-carbon life.
Changxing County Deputy County High Wintek said: "The first batch of new energy electric buses in operation, this is only the beginning not the end Changxing will follow the trend of industrial development, continue to explore in areas such as public transportation, pilot, further promotion of new energy vehicles. applications, advocating a more healthy, low-carbon way to travel, to create the county sample promote the use of new energy vehicles. "
Under the new era, new backgrounds, new normal, Changxing County based battery industrial base, and actively promote technological innovation, product innovation and industrial upgrading, and to cultivate the energy storage batteries, fuel cells and other products, the continuous extension of electric passenger cars, electric buses and other downstream industries, has introduced a Geely - Condi, Shanghai Ruihua other electric vehicle manufacturers, the initial formation of a new energy vehicles and key parts of the industry prototype. (Huzhou Daily)

TREATY Energy Corporation – Shareholder Update - November 19, 2014

TREATY Energy Corporation – Shareholder Update - November 19, 2014

The Management and Board of Directors of Treaty Energy Corporation wish to assure its shareholders that the previously announced PLAN is proceeding. As we have stated before, we are committed to giving you back a company of which you can be proud.

We, however, are concerned about the strong desire to criticize the company or Management when we do not meet self-imposed deadlines. We believe this is potentially unhealthy in terms of corporate progress. To the extent we have contributed to that atmosphere of tension and anticipation, we wish to state that we have no intention of creating an atmosphere of anxiety for our shareholders. We trust that our loyal shareholders will appreciate that we have been as open and transparent as possible, quite frankly more than the majority of other public companies.

So let me reiterate, Management is on track to completing its PLAN to restore credibility to TREATY and to execute on ALL facets of that PLAN. In business, PLANS can and usually do ebb and flow. We assure you that, should something dramatically change or impact our PLAN, we will inform you in due course as soon as is practical. Until such time, please understand that we are diligently working to tackle the series of complex issues that have saddled this corporation for too long. As you can imagine, the restoration of TREATY to market credibility will and is requiring a comprehensive strategy to address the many complexities at all levels that unfortunately burden this company. The Management and Board are putting every effort into turning TREATY around for the benefit of ALL shareholders.

We truly thank you for your support, encouragement and patience. We ask that you continue to support us as we move towards our goals. We will be more cautious in terms of hard deadlines as mentioned previously to avoid unnecessary anxiety. In light of the fact that Thanksgiving is quickly coming upon us; and the fact that ALL of us should be able to celebrate such an important time with our loved ones; the anticipated November 30th update will be published on or about December 2nd. Obviously, any material events that may transpire in the meantime will be published in the form of an official NEWSWIRE announcement at such time.

Chris D. Tesarski
EXECUTIVE CHAIRMAN & CEO
TREATY ENERGY CORPORATION

Kandi Technologies: 'Boots On The Ground' At Kandi
Nov. 19, 2014 8:00 AM ET

http://seekingalpha.com/article/2694755-kandi-technologies-boots-on-the-ground-at-kandi

"Boots on the Ground." You've all heard the term. Usually reserved to cannote an engagement of some kind where the flesh of man is exposed to his most primal fear; death. To engage, however, one must physically participate or else it's not your war. Plain and simple. And, of course during wars, before a winner or loser emerges, the combatants in it must fight a series of battles. Often long and bloody they leave us drained to the core at the end; if there is indeed an ending. The war, however, that I'm about to tell you about will have an ending. For those of you who appreciate opera think of Faust by Gounod. Hint: Triumph of good versus evil….

…..which brings me to my largest holding in the American equities market, Kandi Technologies (NASDAQ:KNDI). Ever since I sold my position in Tesla (NASDAQ:TSLA) three years ago at $30.00 - see how smart I am? - and switched to this formerly non-descript electric vehicle company named Kandi, of Chinese origin, I have been actively involved in a series of battles in what I call a "war to the death." On one side we have the protagonists and on the other the antagonists, namely the longs and the shorts of Kandi. Unfortunately, at least for me, each time I have entered the battleground it was defensive in nature. Initially a novice writer in this space, it was not an easy task to refute some of the very talented authors, hired or not hired by the "short" contingent, who know how to turn a phrase with the best of them. And, surely as day turns into night, they created panicked fear primarily to the uninformed/unsophisticated small retail investor with limited resources and staying power. Many of these people have lost and or continue to lose part or their total investment savings as a result of this apparent never ending "war of the words." So, I entered the fray and have pressed on through five published articles on SA during the past couple of years to present factually based information to present an alternative perspective to these short sellers and hopefully refute their damaging articles. . Note: SA, in its policy of "open" discussion, permits proponents and detractors alike their free forum, by which each side can present its case regarding any specific equity. On the surface this policy appears to be fair and should level the playing field, but does it? The only thing I will say is that the potential exists for one side or the other to misrepresent, utilize innuendo, or outright present falsehoods and have their article published. I as a shareholder, have read every one of these, my perception, negative/attack articles on Kandi and felt I had to respond with the truth on behalf of the small shareholders, and of course myself.

In the end, however, I recognized the instability factor created by this war of the words for what it is...stalemate!...So, until something new was done, not another of the he said/she said arguments, this confusion created by these "shorts" would, with certainty, continue their attacks ad nauseum. I have seen it before.

That is how the genesis of my "boots on the ground" strategy was formulated. Instead of reporting on what my DD came up with, why not see it for myself?

So, I organized a group of six investors, including myself, who would take a trip to China to find out what was the truth and what were the fabrications, if any, regarding Kandi. Personally, I had too a disproportionate share of my holdings invested in this company to let this continue any further. The trip would last nine days of "boots on the ground", and would take us from Shanghai to Hangzhou, Hangzhou to Changxing=, Hangzhou to Shanghai again, Hangzhou to Jinhua, and finally back to Hangzhou. To say the least the trip was intense. Not much time for R&R except in the evenings. By and large we were either traveling, attending Q&A sessions, visiting manufacturing facilities of Kandi and the JV, interviewing customers, talking to companies integrally involved in China's EV industry but not affiliated with Kandi, and the like. My mandate, of course, was to finally put to an end, once and for all, that Kandi was a company that was illegitimate, complicit in fraud, and destined to fail by Kandi's detractors (shorts).

I would report, on what I saw, heard and learned, first-hand, in an article to be published by SA. No holds barred! If I discovered discrepancies, based on my due diligence process back in the states, I would report on it. If I found failings on behalf of Kandi management I would report on it. If I discovered that Kandi exaggerated its claims of growth, I would report on it. On the positive side I would also report on the current state of affairs for Kandi, and if warranted. I would also provide my personal take on Kandi's future possibilities. As I have said more than once in past articles, let the chips fall where they may!



Let's get started….

Members of the China Group:

Harris Goldman (Organizer)

Frank Blatterman (with significant other Daisy)

Steve Fowler

Rich Fitzpatrick

Tom Harrison

Monday, 9:30 AM, September 15 (Q&A with China Group)

After being met by an assistant of Mr. Hu in the lobby of Kandi Headquarters in Hangzhou, the China Group were led to a conference room and seated five across on one side of the table. In a minute or two Mr. Hu entered and sat across from us with his assistant. To his right sat our hired driver/interpreter, Zhu Xiao Bo (Gerry). Note: His hiring by us is unquestionably the best decision made by us regarding our investigative trip. Kudos go out to Steve Fowler for finding him. He not only provided us with a "voice" but also a clear understanding of what was being said to us.

(click to enlarge)

Left to Right: Harris Goldman, Rich Fitzpatrick, Steve Fowler,Tom Harrison, Frank Blatterman

Mr. Hu and Gerry

Before I go into the actual "highlights" of the Q&A session I must tell you that the my plan was to divide all of our major areas of interest into segmented parts whereby each member of the China Group, in order, would ask questions directly of Mr. Hu. Aside from introductions I was utilized mainly as a back-up questioner as each one of our participants questioned Mr. Hu. I wanted to make this an inclusive trip, and it was. Most, not all, of our questions were answered with a confidence and determinedness, but most importantly, that Mr. Hu's vision for Kandi was moving forward at an accelerated pace, without skipping a beat, as he hurdled every obstacle which confronted him.
Mr. Hu's Introduction to the China Group:

"The major cities of China have experienced an ever increasing amount of ICE's (internal combustion engine autos) in the past few years. Along with this increase, environmental concerns, pollution levels, have become more of a problem for each of those cities residents. As this trend continues the major cities have been slowly enacting policies and laws in order to deal with these problems; ie., first being the restricting of new ICE registrations (subject to a lottery). Not enough but something. Smaller cities are soon to follow.

"More effective reform, however, is necessary for urban transportation in cities, such as Hangzhou, or the environment will worsen to a degree of it being untenable for its residents. In ten years, if more restrictive policies are not enacted the transportation systems will fail completely. There are now over a million cars going in and out of the central business district of Hangzhou daily. In ten years there will not be enough parking spaces to handle any increase of autos as the population continues to grow. Even if you tear down every house in Hangzhou there will not be enough parking because there is only so much space which can be allocated to parking."

The cities, such has Hangzhou, have four major problems confronting them regarding urban expansion:

Traffic jams
Parking spaces
Pollution
Energy efficiency

(click to enlarge)

Pollution: The crisis continues FB Photo

"We must also address the waste factor regarding current urban life and the future expansion of our cities":

Auto driving inefficiencies - 10% is driving and 90% is finding a parking space.
Waste of road resources - One way trips. Mr. Hu gave the example of him going to the airport. No return trip by the driver with passengers. Think of how many times this happens each day.
Waste efficiency factor re: re people being transported:

70% one person
25% two or three people
5% four or five people

He also believes that there are five major barriers holding back the development of EVs in China:

Prices for EVs are too high for the masses.
Battery limitations:

cost too high
lack of recharging infrastructure
costly recycling procedures
long charging cycle times
Limited mileage
Limited Range
Battery pollution

If we analyze the current state affairs, re EVs, it is obvious that solutions must be firmly in place and enacted upon if China is to successfully implement its goal in transitioning from ICE's to EVs. EVs are not going to supplant the ICE for a long time. And, the primary reasons for the lag in EV development are that the cities have not been aggressive enough in limiting the number of passenger cars as their populations grow. You don't want to hinder economic development so there is really only one answer; build out the public transportation systems of the cities; ie., buses, subways and taxis, etc. Then again, each part of the public transportation system has its own drawbacks. Taxis are too expensive and inefficient and subways/buses lack the accuracy of where people want to go (not enough locations throughout the cities). Mr. Hu calls these limitations not being enough pipes and capillaries.

Mr. Hu says, however, that his urban transportation model will provide the ultimate solution. The only way that it will work, however, is by the government supporting it. Micro-bus, Kandi's solution, will not only provide cheaper transportation than taxis, elimination of waste of both ICE and EV passenger cars, provide more pinpoint destination targeting, but most importantly, zero discharge of pollutants to the environment. And, this can all be done by leasing/renting instead of selling the car directly to the end user. .

He gave examples of how his micro-bus model was expanding throughout Hangzhou. What initially rolled out as the Kandi Garage, the CarShare distribution model in his vision, has been expanded to include HotelShare, StreetShare, and CommunityShare (enterprise and neighborhood) models. Not only are the newer micro-bus models cheaper to locate and build but they can be done quickly. So, until the national utilities dramatically increase their spending in the build-out of recharging infrastructure the newer distribution models will be located and built at a rapid pace.

He then addressed new EV models which are currently being developed by the JV (Joint Venture of Kandi and Geely). "There will four to five of these new models released in 2014 and 2015." Note: We already knew of two new models named the Urban Beauty and Urban Cowboy for release in 2015 which would make for a total of four EVs in the Kandi stable of offerings in the passenger car category. The possibility of three more took our group by surprise.

Some of the newer models will have upgraded technology packages, including "touch" computer dash screens and other upgrades. Aside from the JV having its own R&D division, Volvo has contributed its proprietary technology to the new models too.

He also said that in the future there might be additional cooperation agreements, didn't specify, that would not include the JV. He continued by saying that it was too early in the process to publicly announce. It sounds promising but I honestly don't know what he is referring to.

"Big News": Mr. Hu formally announced at our meeting that he is now the Chairman of the Board of the JV as of September 1st. This upgrade in Mr. Hu's stature in the company is quite revealing. I will discuss my take at the conclusion of the meeting.

He predicted, in his brief remarks earlier, that unless government gets more proactive in setting and implementing restrictive policies on the growth of ICE's the public transportation system will ultimately fail. Kandi, of course, will benefit as that date gets closer at hand but it's the government which needs to do much more in promoting the micro-bus system. "I can only do so much. Governmental decisions are out of my hands." So far the government hasn't set out policies and or laws which detail a management system for public transportation." He does, however, expect the governmental agencies to increase their activity shortly. The public transportation system cannot continue to serve the public without these policies. In essence the government needs to act at a faster pace, with increasing restrictions, and more money.

Kandi, Mr. Hu noted, continues to develop its own system of the public transport system. As Kandi grows in Hangzhou, more and more people recognize the increasing number of Kandi EVs on the streets. They are no longer hidden from view. National media in China, and some in the US, have expanded coverage, seen on television with regularity, about how Kandi is starting to make a real impact in the lives of the Chinese for now and into the future. So, in spite of the government lagging in its responsiveness Kandi keeps on surging ahead.

He referred to the Minister of Science and Technology coming to Kandi headquarters on Sept. 19th to talk about some of the things that Kandi is presently doing that will be codified into law. That's quite an honor for Kandi...FYI: Unfortunately, at the last minute, the minister was called away, but a new visit will be rescheduled... As each month passes Mr. Hu says that he is being approached by more and more cities wanting Kandi to implement its business models in their cities. Mr. Hu, however, won't agree to expand to those cities unless they enact the policies and laws, at a local level, that he believes are necessary for the success of his business models. In other words before Kandi will come into their cities only under his conditions. This is a significant Mr. Hu decision.

He talked about Kandi expanding into Nanjing, Jiangsu Province. Already there is a 3000 unit order for his EVs before the newest EV manufacturing assembly plant of the JV is finished in Rugao. Nanjing is a medium sized city of only 3.6 million people; second or third tier by Chinese standards. As per his comments, Nanjing will be the first city in China whereby Kandi successfully negotiated favorable policies and subsidies that will be in accordance with Mr. Hu's standards.

He says that many people ask him, "If Kandi is successful will many companies try to imitate Kandi?" He goes on to say, "If business is not good then nobody will copy him." Continuing, says he expects many companies to copy him but it is not that easy to copy what it has taken him years to learn. The copycats will be at least two years, as of today, behind Kandi in getting all the bugs out and by that time he foresees Kandi being one of the leading car manufacturers in all of China. So, he doesn't worry about the competition, and yes, he expects many people to copy him (chuckling).

He also addressed production/sales for the rest of the year. All he would say is that there will be many more thousands of EVs manufactured by the JV for the balance of the year. He also said, "In 2015 the amount of Kandi products produced/sold will shock the world."

He also feels fortunate that he partnered with Geely. They have provided him everything he could have asked for in his post dealings with them. Not only have they provided upgraded technology for the newer models, have transferred key people from Geely's R&D dept. to the JV, but have also provided the JV with four of Geely's top management people. That group includes Li Shufu's VP of Marketing and Sales, who is attributed in making Geely #1 re: passenger car sales in China in 2013.

He then transitioned his introductory remarks, quite unexpectedly, to comment on the Kandi PPS. Yes, he is aware of the "shorts" and how they have cannibalized the stock price for the last few weeks. He hoped we would understand that his way, the traditional Chinese business culture of doing business, is based on results rather than purposefully exaggerating what Kandi is doing currently and what he predicts for its future. He hoped that we, the Kandi American investor would recognize this and support Kandi in any way they can...He then smiled.
Now it's our turn:
Frank Blatterman - QBEX (Quick Battery Exchange), Batteries, and Technology

FB: QBEX is the only system, to my knowledge, which addresses all the drawbacks of the EV recharging process. Why does it appear that it has been de-emphasized by State Grid (China's largest utility) at the moment?

XH: Even though it is not a focal point at the moment both State Grid and the Central Government are very much aware of its importance. The Minister of Science and Technology wouldn't be coming here to Kandi if it wasn't of import.

FB: Do you know of any plans for the immediate future to add additional re-charging stations for QBEX?

XH: There is no doubt that many cities throughout China will adopt this system of battery swapping. There will be many new stations being built.

FB: Will those stations be built for both plug-in EVs and QBEX?

XH: Yes, of course, they will be able to do both methods. As you know, the preferred method of re-charging EVs is long charging (approx. 5 hours). It's also more efficient and cheaper if it is done in the evenings when electricity is cheaper. In the daytime QBEX has the major advantage of swapping the spent batteries for newly charged ones without taxing the grid during peak hours.

FB: The Central Government has recently announced a new policy directive as an add-on to the New Energy Policy. It consists of funding $16 billion dollars for infrastructure. Will a portion of that be spent on QBEX stations?

XH: Yes. It will also be utilized for the construction of cubic garages (CarShare garages). You must understand, however, that $16 billion dollars for infrastructure doesn't go very far in China. There will be other financial resource channels that will participate such as local governments and or others (there has been talk of private funding too by SG). He doesn't know what percentage of funding will be allocated to CarShare garages but he is not concerned. He believes there will plenty of funding available in the near future.

Mr. Hu also wanted to point that there is a common misperception regarding charging stations. They may not be as necessary in the vast numbers many people think are needed. To prove his point he experimented with a new innovative business model named CommunityShare in May of this year. He offered an outlying community (Xiangshan suburb) of Hangzhou a very cheap rate to lease Kandi EVs with one major proviso. The community would be responsible for their own charging, insurances, maintenance, etc.. Kandi would only supply the EVs. A total of 300 EVs were offered to the community initially. To his surprise they all were subscribed to immediately by the residents. Note: you must understand that this community was mostly residential so the residents, by and large, could do the re-charging in their homes in the evening. Very soon after this offering was subscribed to the application list swelled to an additional 1000 EVs. After hearing that the initial lease deal went so well and that another 1000 apps had surfaced he quickly raised the lease price (he smiled when he said that). So, he proved his point that a CommunityShare business model didn't necessarily need many power stations for re-charging and or QBEX. The residents could do the re-charging cycle by themselves.

So, he says, "we come to the chicken and the egg question". Which should come first, the power station or the EV? Mr. Hu then visited a village in Shanghai. There were many charging stations available (Jinshan suburb) there. Unfortunately, however, very few were utilized by the residents. Some had grass growing around them. His conclusion: He believes in many situations that most people can do the re-charging process by themselves; outside of dense urban areas.. Kandi's responsibility, he says, is to manufacture a quality product and then request the charging stations as needed.

Harris: Could we visit one of the CommunityShare locations?

XH: Of course. You can visit on your own. I will give you the address and make arrangements.

FB: At one point in time Kandi had a cooperation agreement with Zoyte. I understand that they have redesigned their passenger EVs with QBEX capability. What is the status of that cooperation agreement and will Zoyte continue to have QBEX capabilities in their cars?

XH: Kandi actually doesn't have anything to do with Zoyte now. The combination of Kandi, Geely, and Volvo have strong backgrounds on batteries. He believes that puts Kandi in a more advantageous position than Zoyte. He feels that advantage will continue for newer battery technologies, QBEX, and CarShare. He really doesn't care what Zoyte does. He is only concerned with his own R&D and constantly improving the products he has to offer.

FB: I see where Kandi has selected quality battery manufacturers for its batteries. Are you concerned about battery issues as EVs become more popular?

XH: Good question. Kandi has very strict quality controls for the batteries it uses. As the quantity need increases there might be quality control issues along the line. But it doesn't affect us as it might other manufacturers. Why? Because our business model is rent/lease. Other manufacturers sell their EVs so if you buy one the end user inherits the possibility of a bad battery. It becomes more of a customer problem as the time of ownership and usage increases. All our customers need to do is replace the battery as needed. No additional worries or cost.

FB: So, as we grow to 100,000 to 200,000 EV production numbers per annum are you concerned about shortages?

XH: Yes, it might create a problem for the near future. So we are planning now that this may happen. The battery industry is moving very quickly which is also to our advantage. Rent/Lease versus purchase. I am expecting a major breakthrough in battery technology in the near future. Again, that is to our advantage. And, when this breakthrough occurs there will be plenty of battery supply available…More in my take segment.

Harris: There has been significant reductions in the cost of batteries in the last few years. Do you expect this trend to continue?

XH: One of the main components of EV batteries is lead. I see, however, a potential major breakthrough in the material mix for batteries in the near future that will lower costs, improve reliability, and safety. From manufacturer to manufacturer I don't see large fluctuations in pricing.
Next is Tom Harrison - CarShare

TH: Any updates on CarShare?

XH: Still building 32 flat share sites (StreetShare) in Hangzhou

TH: What about garages?

XH: 14 garages. Four operational and 10 under construction. It's easier to apply for StreetShare sites versus vertical garages. The cost, of course, is much higher for the garages than StreetShare locations. Our plans are for 632 of the StreetShare sites in Hangzhou with maybe 100 built through 2014. We are, however, finding it more difficult to execute our business plan in Hangzhou because of local government behavior (sic...not aggressive enough).

TH: Tell us some CarShare information regarding other cities?

XH: We recognize this and are currently extending our energies to other cities with more receptive policies and laws for EV expansion. I wouldn't be surprised if some of the cities we are currently involved with overtake our initial successes in Hangzhou. Actually several cities that we are closely working with right now are larger than Hangzhou (Hangzhou population 8.1 million). As I said before, when we receive aggressive government support, expansion is much easier and faster than what is occurring in Hangzhou at this point in time.

TH: But it is still in the planning stages now?

XH: Yes

TH: What is the serviceable life of a CarShare EV?

XH: About the same as a traditional car. The battery, however, must be replaced every four to five years due to the restrictions of current technology.

TH: Is there a desire or potential for the JV to take over ZZY?

XH: Although it was stated by us that there was interest on behalf of the JV to acquire a 70% stake in ZZY the reality is that currently the company, ZZY, is operating at a loss. So, the JV will not take further steps at this time.

Harris: Other than being the funding arm of the operational network, re: CarShare and the JV's other business models, isn't it true that the operational part of ZZY is essentially being run by the JV? And, if that be the case why does the JV need ZZY at all?

XH: As a matter of fact, ZZY's operation is experimental at this time. So, it might take up to three years for the business to stabilize and be profitable. Of course this is all dependent on government behavior no matter where we expand to. But when all the pieces are set up properly there will be a big splash re: ZZY. So, as of right now the Kandi/JV manufactures the EVs and ZZY runs the operations. I anticipate that in approximately three years that ZZY will be listed on a Chinese Stock Exchange. Right now, we won't take a controlling position in ZZY but it will, in fact, happen in the not too distant future.

Harris: Recently there was a $71 million take-down of funding, direct placement, from the latest shelf-offering that was announced a few months ago. Would some of that funding be utilized to acquire a controlling interest in ZZY?

XH: As a matter of fact, the $71 million dollars will be utilized by the JV for operations and R&D rather than the purchase of ZZY. Designing new EV models requires additional funding from both Kandi and Geely. So, that is where most of that money will be spent.
Rich Fitzpatrick - EV Leasing

RF: Enterprise Leasing...Any feedback for the companies that signed up? (Mr. Hu didn't quite understand the question. CommunityShare, in reality, is comprised of two components; actual communities and enterprises. They are both treated as one business model with the same costs and requirements for the end users.

XH: Yes, the first CommunityShare program (Communities). Initial 300 EVs at approximately at $135.00 a month up to 1000 EVs. Lease is for three years (can be renewed). End user is responsible for their own charging costs, etc. Kandi is only involved, other than the original lease, if there are warrantee issues. If those issues arise Kandi will replace the EV for the end user.

RF: So, to drive 100KM, the cost to the end user is approximately $820.00, which is just the cost of the electricity….versus the cost of a traditional car which can cost up to $17,000.00.

Harris: I think he is talking about the community versus the corporate group lease specifically (Trying to sort it out for clarification purposes)…

XH: It really doesn't matter because the organization we are dealing with makes the lease payments; not the end user. (Whether enterprise or community. Mr. Hu groups them together as "Group Lease.").

RF: Positive feedback?

XH: Yes, of course. Our Lease is a much cheaper alternative to purchasing a traditional car. The JV now has several thousand EVs in the Group Lease Program (CommunityShare).

You must understand the Chinese culture. The Chinese like to compete with themselves (keeping up with the Jones's). When most lease the same car any social burden ceases to exist. Our micro-bus business model is quickly moving forward based on the increasing acceptance of leasing versus purchasing by the end user.

RF: Has Alibaba (NYSE:BABA) signed up yet?

XH: We are still negotiating with them. We might sign leases with some of their individual divisions. Right now they have signed up with some of the village communities as part of the group lease program. ZZY has done this several times with Alibaba.

Mr. Hu then added as an aside (Took me a little bit by surprise but he wanted to get this in right now). On the issue of why the JV has so much inventory on site is because of the new "purchase tax" exemption for pure EVs, which was recently announced, starting September 1st, by the Central Government is yet to be implemented. As soon as that occurs the EVs will be shipped and picked-up by their end users...When we visited Changxing (JV manufacturing facility) I understood the import of what he said.

RF: When do you expect that to happen? (Referring to the finished inventory when we visit the plants)

XH: The tax law is established. We are just waiting for it to be fully implemented...FYI: Bureaucracy is everywhere, including China.

RF: There was a goal stated by Kandi that there would be 10 operational CommunityShare programs and 25,000 cars sold by the end of 2014. Is that goal still attainable?

XH: It's not about the 10 CommunityShare programs specifically, but the 25,000 units is approximate enough. It's for the total business this year. Then again, there is not a lot of time remaining in 2014, so there is not much time left to achieve that goal. The only reason that Kandi may not reach that goal is that the city of Hangzhou has not, as of yet, either implemented the Tax exemption or the final subsidy package. All these factors have slowed down EV sales. There is only so much I can do. There are some things which are beyond my control. I can build the EVs, find customers for them, but certain things are beyond my reach.
Steve Fowler - New Markets and New Production Facilities

SF: We are currently building new plants in Hainan and Rugao City as part of our expansion program. Will they be making "parts" or be focused on assembly of EVs for the JV?

XH: Firstly I chose Hainan because the Central Government pays a lot of attention to that island (important tourist destination). Hainan is also symbolically important because of environmental concerns and what it would mean to its economy and people, if pollution became a tourist problem. In fact, the local government is currently considering a permanent ban of ICE's on its roads.

SF: When?

The JV will build the parts at its current manufacturing facilities on mainland China and complete (assemble) the EVs in Hainan. The Urban Beauty and Urban Cowboy will be completed in Hainan. We are hopefully anticipating that the facility will be completed and operational sometime in 2015. The only reason it might not be is because of extreme weather problems.

SF: What about Rugao City? (Jiangsu Province)

XH: The plant, which is near Nanjing (3.6 million population), will assemble EVs for Nanjing and other cities in the province. You must understand that some of the cities in China are larger than some countries (we all laughed).

SF: What about the 30% mandate of the Central Government in that cities (local government) must purchase EVs, (30%) as part of their new vehicle purchase programs?

XH: Yes, all new vehicle purchases must be 30% EVs. Governments will rush to buy EVs and Kandi will benefit from that policy. Mr. Hu said he was confident that Kandi will have a large market share, in all sectors, throughout China.

Harris: Any plans for the van?

XH: A few of our light truck models have been approved by the MIIT (Ministry of Information and Informational Technology). We have already sold some to the government.

Harris: What about the van specifically?

XH: Originally we thought the van idea would be perfect for deliveries and the like. However, we ran into obstacles because of limitations on the batteries, re: range and longevity. The van to us in the final analysis was but a transitional EV; not for production.

As lunch was about to be served, one of our participants asked questions of Mr. Hu which included whether he would visiting the US, November in NY?, conferences?, talking to US government officials?, visiting Elon Musk, any questions for us, etc...He gave no definitive answers.
Harris Goldman - JV Expansion into China's Largest City Shanghai

HG: I started, not by asking him a question, but by providing him with a brief bio on myself. I next asked him if he had ever read any of my articles on Kandi in seekingalpha.com? I wanted him to know that we were both entrepreneurs. I then said that I believed that Kandi's emergence in the Chinese marketplace was just the beginning.

XH: No recognition to the first part of what I said, oh well, but did say that we should come back next year and witness the "skyrocketing growth" of Kandi's business. Kind of surprised me with that answer for someone who is usually very tight lipped in his PR's, re: guidance, of any kind.

HG: As a former Tesla (TSLA) investor, who sold out at $30.00, I hold you directly responsible to get me back where I would have been had I not switched to Kandi.

XH: He smiled and chuckled and then said, "no problem."

HG: What are your plans for the opening up of Shanghai marketplace?

XH: I'm sure you know that Shanghai is China's largest city, 23 million people, and that the possibilities are endless. All of what we have learned and done in Hangzhou is adaptable there. All our different business models.

You are aware that we also, the JV, have the former Shanghai Maple plant under our umbrella now. We are currently building the Panda EV model here. Also much R&D too for future models.

The Kandi JV has already started many projects in the Jinshan District, including CommunityShare, both community and enterprise sectors. Plans are already in progress for CarShare too. We are very excited to be here and I am confident that Kandi will make a large impact.

HG: I then asked him if he could make arrangements for our group to visit all of the Kandi/JV plants, all the ZZY CarShare garages, operational and in construction, and CommunityShare.

XH: He said he would make the arrangements.

HG: A short time passed when I saw his assistant come back into the conference room and whisper something into his ear. I sensed that my Q&A would be cut a bit short and I was right. He was about to excuse himself for a phone call or the like, so I immediately thanked him for his hospitality and the time he devoted to us at our meeting...Aftermath: All told we spent four hours together...I was exhausted and excited at the same time.. I thanked him for the time he had spent with us, and he responded that he hoped we'd enjoy the rest of our trip. He then turned around and left the conference room.

End of meeting.
My Take: The Man (Mr. Hu) and What He Said

You may have noticed, while reading, that there weren't any of the typical links you are encouraged to "click" for corroboration on what has been reported. It wasn't necessary. What you have read is straight from the Chairman of the Board; Kandi and the JV. More than that I can't provide.

When talking about this meeting in its entirety, I am left with some distinct impressions. Mr. Hu is a super intelligent human being, confident, resourceful, persevering, focused, and some might say is maniacally dedicated to his vision for Kandi. A lone wolf to some degree. Not very trusting. Someone who permits very few people into his circle of trust. A leader nonetheless who instills confidence in those who work with and for him. His life story, up to this point, has been one of rapid advancement in whatever he has done; successful on all levels. Respected by his peers (Geely, China's largest traditional car manufacturer partnered with him), and equally important, has traversed the complexities of the Chinese political arena, both national and local, to bring him and his company to the threshold of an historic breakthrough in the revolution taking place in the Chinese EV industry.

Not an Elon Musk in personality or possessing his charismatic allure, but simply a man who provides exceptional intelligence, coupled with creative vision in pursuing his dreams. He is one who abides by the protocols of Chinese business culture. No choice. He also is one who projects that indefinable "look" of getting things done; the right way. When he looks at you, it's straight in the eye, and you believe what he says. He doesn't answer all the questions that you ask, which is not unusual for any head of a company, but he is not a chief executive who "pumps" his company to make you, his visitor, feel starry-eyed. This is not to say he isn't gracious or friendly, only that his style is one that gets straight to the point.

Regarding what I heard, I came away thinking that this man should not be taken lightly by anyone. Most everything he has said in the past has come to fruition, albeit later than what he initially projected in some cases. Some issues he has avoided in delivering; Beefing up his IR Dept. and appointing an Chinese American to interact with the American investment community. Yes, I also want him to be more transparent in his dealings with shareholders! But, in a period of less than three years he has taken Kandi from nowhere to the undisputed #1 pure electric car manufacturer in China as of today. Numbers don't lie...only detractors? That may change of course, who knows, but there is no doubt in my mind that Kandi will remain one of the major forces in the future of EV development, manufacturing, and sales in all of China.

When asked if he was concerned of the expected competition that will surely be clicking at his heels, he responded, "I don't care." His responsibility, as he sees it, is to concentrate on what Kandi was doing and not his presumed competition. With four to five new EV models being introduced in 2104/2015, as per Hu, that will bring his stable of offerings to a minimum of six pure electric passenger cars. Nobody, to my knowledge, comes close to having Kandi's diversity of offerings in the lower end of the EV marketplace in China. I repeat, no one.

Mr. Hu also made the point that his rent/lease business models are essentially the ultimate solution for the end consumer. Why? The end user is not responsible for replacing the batteries after four or five years of EV operation. When the batteries of an EV break down, or need to be replaced, the JV replaces them at no cost to the end user. If an end user, however, purchases an EV from another EV manufacturer he alone is responsible for its replacement. That's a very costly scenario. Batteries currently average $5000.00 for a pair. At the lower end of the market, imo, that doesn't make practical sense.

CarShare Garages: He commented that there were four completed, and operational, re: the vertical garages. Ten under construction. I had hoped he would have given explanation as to why his projections of thirty to forty of these garages would be completed by year end 2013, in August of 2013, but it didn't come to pass. Suffice it to say that he didn't comment directly on that issue. What he did say was that "he could only do so much. There were things, that he wouldn't elaborate on, that were not under his control." Two possible reasons popped into my brain. One is that ZZY didn't have the required funds to complete more ofthe vertical garages or that the Hangzhou Government, for some reason, has held things up. Even China has a bureaucracy. Hurry up and wait! He did say, more than once, that he has not received enough local governmental support evidenced by the City of Hangzhou's slow implementation of policies and or laws that would speed up Kandi's expansion. This is why, in a follow-up question, Mr. Hu exhibited his business acumen and learning experience when he said, "Kandi has received numerous requests to expand its EVs and business models to cities all over China, but Kandi would NOT, I repeat would NOT, entertain those requests until those cities enacted policies and or laws which will permit Kandi to expand more freely." That's significant. Yes, he has indeed learned, the hard way, by experience.

Being elevated to Chairman of the Board of the JV from CEO is monumental for Mr. Hu. I say this because Li Shufu, CEO/COB of Geely and formerly COB of the JV, has, in fact, relinquished the reigns of control to Mr. Hu to drive the future of the JV. Knowing the personality of Mr. Shufu and his dealings of the past with other companies (100% buy-outs) it is significant that Mr. Hu now runs the JV as Chairman and Kandi retains 50% ownership.

On the issue of batteries: In hindsight I remembered Mr. Hu stating that an imminent breakthrough in technology was about to occur. Well, no more than seven weeks later, after the conclusion of our trip, that breakthrough was announced. Tianneng Battery, Jinhua, has announced a new graphene manganese lithium-ion battery which purportedly reduces cost of EV batteries by half and increases range to 300km. It is currently not in mass production but indications are that Kandi will introduce this battery sometime in 2015.

One last observation: Previous rumors/reports in the media re: the Kandi/Alibaba connection were clarified recently. Yes, there will be more long-term leases of EVs in the future by Alibaba, currently being negotiated, but that really wasn't the "big" news. The big news is that Alibaba, through its sophisticated IT system, re payment system for goods and services on it's website, will now offer a complete solution for ZZY...Ali-Pay, for the rental/lease of Kandi EVs; PC and mobile apps. Without going into too much detail, the end users requirements of deposits will be dramatically reduced (if not all), paperwork essentially eliminated at pick-up points, essentially providing a streamlined convenient process on behalf of the renter/lessee. Yes, it's back to his vision; build the EVs and market them. Welcome to the 21st century Kandi!

CEO Hu in San Francisco....



Fog and smog in Hangzhou, Zhejiang, China

Haitong Securities chief analyst Zhou Xuhui new energy industry

Zhou Xuhui: promising electric vehicles and photovoltaic industry



Haitong Securities chief analyst Zhou Xuhui new energy industry
Crystal Ball Award for the eighth sell-side analysts' annual awards ceremony cum champion Forum "on November 16, 2014 was held at Tangla Beijing. The award by the "Securities Market Weekly," sponsored by PricewaterhouseCoopers independent vote count and the whole testimony, and telecommunications networks carried live coverage.
Champion Forum invited 12 national economy and capital markets affecting key economic areas champions analysts, make the most accurate predictions and Prospects 2015 the industry trend of its total investment on the road. Won first place in the new energy industry analyst at Haitong Securities chief Zhou Xuhui for 2015 Prospects of new energy industry to do a speech. Zhou Xuhui mentioned promising areas for new energy electric vehicles and photovoltaic industries. Electric car is a national strategy, and adjust short-term oil prices will not be low tide. Xi Chairman has been finalized to develop clean energy in China, is likely to be carrying the PV, the recent introduction of the quota system may, will stimulate domestic installed capacity to a higher level....


...The second area in the field of new push on the market, electric cars, Condi headed and got the car production qualification or affiliated automotive production qualification, get state subsidies, the cost of this car is very low production costs 10 less than ten thousand dollars, high subsidies if some cars have 67 million, a very low price to sell out, about three fifty thousand dollars, people really can have the purchasing power of people to try this car. And this car user groups are fringe groups, there is a great convenience, each family detached homes are to the middle class is not the same, they charge very cheap, get the patch panel directly in the yard can be charged .,,,

Kandi Technologies - Highlights Of The Second U.S. Investor And Analyst Conference
Nov. 17, 2014

http://seekingalpha.com/article/2689275-kandi-technologies-highlights-of-the-second-u-s-investor-and-analyst-conference

Disclosure: The author is long TSLA, KNDI. (More...)
Summary

Three new pure electric cars will be introduced in 2015, K12 “City Beauty”, K13 “City Cowboy”, and KD17 “Cyclone.”.
The new electric cars to utilize advanced batteries with a driving range of 300 miles, greater than Tesla Model S.
The new batteries are safer, last twice as long as the current batteries, yet cost about half.
The new cars will likely be sold directly to consumers, and possibly overseas.
Central government subsidy check of $32.6 million for the quarter ending June, 2014 has been received by the local government.

"The Stone Age did not end for lack of stone. The Oil Age will end long before the world runs out of oil." - Sheikh Zaki Yamani, former Saudi Arabia Oil Minister.

Abstract

Kandi Technologies (NASDAQ:KNDI) hosted the second U.S. investor and analyst conference on Wednesday, November 12, 2014 at the Hyatt Regency Hotel in San Francisco, CA. The first investor and analyst meeting was held on September 5, 2012 in Atlanta, GA. There were approximately 100 attendants last week, compared to about 30 investors who attended the Atlanta event two years ago.

Two days prior to the conference, Kandi reported impressive third quarter earnings. Revenue grew 158% YoY and was the second highest in Kandi history. The company also achieved record GAAP income for the quarter.

The presentation slides can be viewed here. Mr. Hu started with the presentation, followed by a Q & A session. Mr. Hu spoke Chinese with Kewa Luo, Kandi Investor Relation Manager, translating. The presentation slides are well prepared, and contains excellent and concise information about the company. The presentation materials provide an invaluable tool for investors' due diligence, especially investors new to the Company and its market.

One day prior to the conference, Mr. Hu confirmed he visited Tesla (NASDAQ:TSLA) with some Chinese government officials. The meeting with Tesla was about battery technologies. No other details were disclosed.
New Car Models for 2015

Recall that on October 6, 2014, Kandi announced the new PEV model KD17 "Cyclone". The Cyclone and other new cars will be equipped with the latest technologically advanced batteries (to be discussed later). Kandi has just received the Cyclone testing report from the government and a press release is expected soon. Cyclone is expected to be available in the first half of 2015.

Exhibit 1 - Kandi new model KD17 "Cyclone"

On July 9, Kandi announced the new model K12 "City Beauty" at Kandi EV Group's first Supplier Conference held in Hangzhou's First World Hotel. The car was touted by attending vendors as a superior product. For over four months, there were no news released about this sleek-looking mini EV. Conference attendees learned that Mr. Li Shufu had asked Kandi to upgrade the design of this beauty in and out, to transform the car from targeting affordable, lower-end segment of the market to the "higher end, tech savvy" customer base. He also wanted the car to become marketable globally. More functions are being added to the car, including driver's assisted technology. Mr. Hu mentioned that the car can be easily maneuvered by drivers with minimal driving skills.

(click to enlarge)

Exhibit 2 - Kandi new model K12 "City Beauty"

This is the first time attendees learned of the new model K13 City Cowboy in about two and a half years. Similar to the City Beauty, the City Cowboy is being upgraded to meet global marketing standard as well. These two models will be available in 2015.

Mr. Hu mentioned that Geely's first priority is now the JV and its EV projects, with Volvo its second priority, and the traditional ICE cars their third priority. This comes as no surprise since Li Shufu recently remarked at the Fifth Global Forum held in Wuhan, China "The traditional auto industry is heading for bankruptcy, no longer has a market." What surprised attendees was why Geely has such involvement with Kandi's own City Beauty and City Cowboy products, would that make Kandi a division of Geely? This prompted an attendee asking whether or not an acquisition of Kandi is possible. Mr. Hu answered "Yes, an acquisition is possible", then he jokingly added "but I'm not sure who will acquire who." (or maybe he meant "who will acquire Hu".) Nevertheless, Geely's active involvement with EV development has been very positive for Kandi, "Geely has helped improve Kandi's new products substantially", Mr. Hu said. When asked whether or not, Kandi's new EVs will be sold directly to consumers, Mr. Hu twice responded "Very possible, very possible", then he added "We have been approached by a European company about distributing our cars in Europe".

(click to enlarge)

Exhibit 3 - Kandi new model K13 "City Cowboy"

Besides these new models, the JV's currently working on other EV models. For instance, pictures of Kandi's new mid-size SUV K30 based on Geely's popular Emgrand 7 RV were posted on the Sohu site on September 9.
New Batteries and New Technologies

Perhaps the most exciting news from the conference is the new battery announcement. Mr. Hu disclosed that all of Kandi and Geely new EVs will be equipped with new batteries co-developed between Kandi and Tianneng Group, the leader of the Chinese green new energy industry. Tianneng Group was founded in 1986 and is located in Changxing, Zhejiang province. Tiannneng employs more than 20,000 employees and holds more than 700 national patents. Its battery products were named as "the Best Chinese Motive Battery Brand" and "the Most Customer Reliable Electric Vehicle Battery Brand". Tianneng Group is listed as "36th of the top 500 global new energy enterprises in 2013", "Top 500 of China private enterprises", and "Number1 of top 10 China battery industry" for 10 years.

battery-join.jpg

Exhibit 4 - Tianneng new battery announcement

On October 23, 2014 Tiannneng Group announced its new batteries with breakthrough technologies. Separately, Tiannneng and Kandi jointly developed a customized version of the new batteries that will be exclusively deployed in all of Kandi and Geely's new EVs. The new batteries will also feature Kandi's battery power management technologies.

The new battery has a driving range of over 300 miles, higher than Tesla Model S which has a driving range of 208-265 miles. Tesla driving range is currently topping all other electric cars on the market. The second place, Toyota Rav4 EV, has a driving range of 103 miles. The driving range for the current world's best seller Nissan Leaf is only 84 miles. Exhibit 5 shows an interesting fact - Despite its high price tag, Tesla Model S has the lowest cost per mile of range.

Mr. Hu said that, despite the incredible driving range, the new batteries cost only half of the current batteries, and last twice as long. The new battery is safe, and is protected with thirty six patents.

(click to enlarge)

Exhibit 5 - Despite hefty price tag, Tesla Model S cost per mile is the lowest
Subsidies

When asked about subsidies, Mr. Hu said that the Central government has already paid Kandi JV subsidies through the first quarter of 2014. Subsidies for the quarter ending in June was supposed to be paid in July, but it was delayed. The subsidy check of 200M RMB (approximately $32.6 million) finally arrived to the local government in early November, and should get to the JV anytime now. The Central government still owes the JV a subsidy check for the third quarter.

Regarding local subsidies, Mr. Hu mentioned ZZY has never got paid from Hangzhou or Shanghai governments. Hangzhou subsidy policy is still waiting to be approved. Once it get approved, the buildup in Hangzhou will resume. The proposed amount of Hangzhou subsidy is very similar to that of the Central government. He confirmed Kandi will deliver one thousand EVs to Chengdu in December. Nanjing process might take a while, therefore the delivery timeframe is not yet determined.

Mr. Hu mentioned that out of the 86 pilot cities, about two-third of those cities have approached Kandi JV to discuss about Car-Share deployment in their cities. He said that in order for Kandi to work with them, besides local subsidies, the cities must also provide free "green lands" to build Car-Share stations. Street Car-Share stations is much preferred over vertical parking garages because they're much faster to build and cost a lot less.

(click to enlarge)

Exhibit 6 - Subsidies and tax break incentive
Outlook

From time to time when asked, Mr. Hu hinted about the short-term and long-term outlook. About Hangzhou, he said more Car-Share stations will be built after Hangzhou subsidy is announced. He expects more Car-Share announcements will be made with new cities, even though "government process can take a long time". For now, monthly production of 2,000 EVs is likely. "It will take between one and two years for Kandi JV to begin producing 100,000 EVs per year", he said.
Conclusion

Mr. Hu is very concerned about the manipulation and the volatility of KNDI. During the meeting he asked for suggestions and feedback from attendees. Valuable feedbacks were collected, including transparency, suggestion that Kandi hold earnings release conference calls , provides quarterly guidance, gain industry analyst coverage, and increase institutional ownership.

Mr. Hu is very confident about the future of Kandi. He envisions 2015 will be the transition year for the company, more Car-Share cities, more government support, and a broader range of PEVs. The new cars contain high-tech features, utilize advanced batteries with driving range of 300 miles per charge, targeting upper middle class. These cars will likely be sold directly to Chinese consumers, with opportunities to be marketed overseas. This is why Kandi confidently mentioned in the Form 10-Q that its new products will be "massively competitive".

The JV will likely market the City models domestically and also overseas, which Geely has lots of expertise. This means the JV function will expand beyond the Car-Share business, into selling directly to domestic and overseas customers.

Mr. Hu mentioned the current five-year plan calls for half a million EVs on the road by the end of 2015. By the end of 2020, five million EVs will be on the road in China. Kandi's PEV share of the market is expected to increase exponentially.

Ford CEO: We're making a 'Tesla' for the masses

http://finance.yahoo.com/news/ford-ceo--we-re-making-a-tesla-for-the-masses-145008802.html

Ford CEO Mark Fields wants to change that. “Clearly we have the capability to create electric vehicles,” he tells Yahoo Finance's Bianna Golodryga in the associated video. Ford is currently ranked number two in the electric market and has released the popular Ford Focus, which was ranked as the most fuel-efficient compact car sold within the United States.

“Tesla (TSLA) has done a very good job of bringing electrified cars into the consciousness of the American people,” he says, but “Tesla’s approach is to cater to a high-end consumer.” Ford’s approach, according to Fields, will be to make electrified vehicles “attainable to the masses.”

Related: Ford CEO: Oil Prices Will Rise

Fields claims that Ford has no interest in buying Tesla, despite a slew of rumors that Ford and GM were both pursuing the company.

When it comes to driverless cars, there seem to be legal roadblocks popping up all over America. The FBI and National Highway Traffic Safety Administration have also expressed concerns over the self-driving vehicles. Meanwhile, the UK will allow the cars on roads starting in January. So is the U.S. falling behind the curve? “Overall, when you think of autonomous vehicles you’ll see driver-assisted technologies migrate across our entire lineup over time,” he says.

Fields isn’t concerned about America’s slow pace in adopting these technologies. He believes we’re still researching, sensor-detectors are still improving and infrastructure is still being built. “Our approach at Ford is to look at this as an opportunity for us going forward and that’s exactly how we’re going to look at it.”

Application
Electric cars, hybrid cars, golf carts,utility vehicles,electric buses, tourist sightseeing cars, ships and patrol car, etc
General Features
1. Large capacity, high specific power
With imported high purity raw materials and the national patent technology, excellent large current discharge performance and large capacity
2. Long service life
Under standard condition DOD80%, can be 600-800 cycles
3. High capacity at low temperature
The product is of strong accept ability under low temperature to avoid the mileage drop during winter
4. Fast charge and high acceptance ability
Scientific structure design according to the QC/T742-2006, fast charging, charging capacity 100% an hour
5. Maintenance free, quick charging
Valve controlled sealed structure; little water loss, without water replenishing maintenance, using multi intelligent charging method, normally 5-6 hours to achieve a full charge
6. Good recovery capability of over discharge recovery capability
With the rare earth to effectively improved the connection of the conductive grid and active material. 100% recover of the battery capacity for occasionally over discharge
7. Large current discharge, excellent performance
Silver plated copper wire core structure is used for pole terminal, firm and reliable connection, safety, convenience, more conducive to large current discharge
8. Better uniformity
New patented formula, special new process, to guarantee the uniformity of multi-cell used in series
9. Environmental protection
Reliable full sealed structure design, with the unique gelled electrolyte, no leakage and acid fog, safe and reliable placement of any direction, the national green new energy products


http://en.cn-tn.com/EVF.aspx

Lithium battery industry is called the new energy vehicles, "heart", is expected to usher in good financial and other support opportunities policies. Yesterday, the second session of China's new energy industry lithium International Forum was held, 400 companies, 700 industry representatives attend the meeting, known as the lithium industry Davos summit. Zhengbao reporter learned from the conference, to accelerate the development of lithium-based battery power is very urgent, we must strengthen policy support, strengthen technological innovation and business model innovation, promote the popularization of new energy vehicles.

Zhengbao According to reports, the National 863 electric car experts revealed that only support the new energy auto companies were not enough, the state authorities are also preparing to introduce subsidies to support power lithium battery with relevant policies and measures to stimulate new energy vehicle market to mature.

According to the China Battery, CEO revealed in Puritanism, the first half of 2014, China's lithium-ion battery industry (including battery, anode material, separator, electrolyte and special equipment, etc.) close to 40 billion yuan output value, industrial structure and the new highlights emerging new technology applications, while the second half of the domestic lithium-ion battery and critical materials production is also stable high growth, industry's annual output value is expected to exceed 90 billion yuan. Last year the figure was 50 billion yuan, the explosive growth significantly.

Experts, the rapid growth of China's lithium battery industry has benefited from stimulating new energy vehicle market demand. MIIT latest statistics show that from January to October this year, China's new energy vehicle sales 47,000, annual sales are expected to reach 6-7 million units, an increase of 4 times, while in 2015, the sales forecast to reach 250,000 vehicles, for two consecutive years will show doubling trend. Of lithium-listed companies, the smart phone growth has slowed, orders from the field of new energy vehicles will become the most powerful engine of growth.

In fact, China's new energy vehicle and battery industry are in a critical period of development, is facing unprecedented opportunities, but also faces many risks and challenges. This year, ATL, LG and other Korean battery giants in the domestic expansion, and our battery business is still in the small scattered, low-level redundant construction phase, with Japan and South Korea have been supplied Tesla battery giant gap is widening . For a long time, the battery industry as a constraint to the development of new energy automotive industry in our country's long-standing problem, also received a high-level government concern and attention.

This year in September, when Vice Premier Mackay research power battery research and production in Tianjin, stressed the need to strengthen policy support to accelerate the introduction of relevant research policies and regulations, further increasing the financial, tax, finance, industry and other policy support. To strengthen industry standards and to guide and encourage corporate mergers and acquisitions, bigger and stronger competitive enterprises, and promote the sustained and healthy development of the industry.

Companies, Eastern Electric Tower Tech is intended to be the country backdoor transition lithium-ion battery production, the country accounts for Tower Tech domestic market share of 20% lithium, in the first half of this year, the company has the power lithium battery shipments of about 0.11GWh, in ranked third. Since the beginning of the year, the company released a statement 64 patents, is the only one "pure" power lithium battery company, reported that after the backdoor listing of the company is expanding production capacity, development of the national market, to international. Universal money flows Wanxiang Group, the largest shareholder, but also have more power lithium battery production capacity, core customers include Haima Motor, Dongfeng Motor Condit car and so on.

Notes from Frank on his trip to Kandi....

I should add that this is from my hand written notes, and is how I wrote what was said. Because of this, there may be five slightly different versions of the meeting. Our driver and interpreter, Gerry, did a fine job and is to be commended highly for his efforts. (Daisy speaks the other dialect used in China , and has not lived in China for many years. Hence, she was not able interpret at the meeting.)



We met with Mr. Hu on the very first day of our visit. After finding the Corporate Offices in Hangzhou we had about 4 hours of Mr. Hu’s undivided attention. After introductions by Harris and a presentation of two gifts by Tom, we got down to the actual meeting.



Mr. Hu first had a Power Point presentation for us to view, with him presenting the commentary. The presentation was, IMO, very basic but adequately explained Kandi’s business model. (He did not know our knowledge level, so kept the presentation to the novice level to give us an introduction to the business.) The presentation explained the reasons for Electric Vehicles: pollution, inadequate parking, traffic congestion and the need to import oil to fuel the cars. ICE restrictions will limit the number of new cars on the roads, but EVs will not be restricted. One point that I found very telling is that unrestricted growth of autos will choke cities and restrict city growth. Last year there were 1.17 million in HangZhou , and the policies are expected to restrict growth to 12% per year. The same problems are occurring in all of China ’s cities, not just HangZhou . Waste of parking, waste of vehicle usage, 90% of time a vehicle is parked and not driven, and when driven 70% of that time only one person is in the car. This is the rational for the Micro Bus Project.



Barriers to EV adoption: price, battery, limited mileage, long recharge time, incomplete grid, potential battery disposal problem. Misleading conceptions: Production of EVs, and EV to fully replace ICE; also price point of EV not competitive with ICE.

There are four ways to solve, or at least alleviate the public transportation problem: Subway, Taxi, Bus, and Micro Bus. Commercial mode must be adopted for EVs.



6 hotels now have flat car share. (We actually visited one of them while I was there.)



Mr. Hu paused at the Urban Beauty part, explained that all controls would use a touch screen and would be using anti collision technology. He also said 5 or 6 new models would be introduced.



All R&D would now be done at the JV. A part of the presentation we viewed showed examples of flat parking, underground parking, vertical garages, and business and community car share.



Government must take to lead in development of an integrated urban transportation system. At the present there is no specific organized government plan. He fully expects that government entities will be using the pan as envisioned and presented to them by Kandi. Of vital importance is that he will not enter a city without that city first passing legislation. (He did not expand on this); he expects Nanjing to be the first to pass such legislation.



He fully expects other companies to follow Kandi’s lead, but we have a 2 year head start.



Next year we will shock the world with EV production



Mr. Hu states that he feels very fortunate to be aligned with Geely



The above represents some of the discussion associated with the Power Point presentation we viewed, as well as the narrative. The Presentation was an earlier version of the one posted today by Kandi as part of the meeting in San Francisco . But, it was not as professionally done.



The next part of the meeting consisted of discussions on topics. My notes consisted of the following:



He fully expects a battery breakthrough in the near future. QBX is not dead.



We are still building 32 flat car share sites, to a maximum of 672. 4 towers are currently in use, with 10 being built. There are 16 hotel sites at the present time. Cities other than HangZhou may provide government support before HangZhou . (My read on this is that he is disappointed with HangZhou ’s lack of progress. He did not seem at all angry, just disappointed.) The serviceable life of a car used in car share is longer than 5 years, but the battery must be replaced between 3 and 5 years.



We may eventually acquire 70% of ZZY, but not now as it is still operating at a loss. ZZY may be independently listed in China in the future. ZZY is now experimental, may get government support in the future.



Fee for Community car share vehicles is 800 RMB/car/month. Customer is now responsible to provide charging equipment. Feedback has been positive due to low usage cost. Several thousand cars ar out there now for group lease. Companies have signed up for Corporate lease. We expect to manufacture 25,000 cars this year.



Hainan Island pays attention to the environment. They may prohibit ICE in total. The factory on this island is under construction now. We may build Beauty and Cowboy there.



Rugao factory is under construction.



At the time of our visit He mentioned a possible visit to NYC in Nov, but it appears that San Francisco was the location instead.



I took no notes during the factory and car share location visits, as I was taking videos. I have had DVDs made of the videos, with each of the participants getting one, as well as Aaron Rockett. My hope is that Aaron will use it to produce a documentary on EVs in general, and highlight Kandi and China as examples of what is being done.



I do not have the computer expertise to place any of the DVD material on the Web. I hope one of the other members will select parts and place on utube for viewing. I am not looking for recognition or payment for any of the videos placed there.



This concludes all I have to say. Unfortunately I had to leave the group 2 days early, as I had to accompany Daisy to HongKong where we met all her friends.



The pollution in all of China is bad. While at an attraction called Window on the World the wind shifted. The pollution level went from slight to bad in the space of 15 minutes. While on a bus outside of HongKong I looked in the direction of the Disneyland park. I could barely make out the cable cars traversing between hills in the distance. When I was there 4 ½ years earlier I had no trouble viewing the bridge the bus was on from the cable cars. The pollution has gotten that much worse.

And telecommunications networks> Automotive> Automotive Industry News> Text
Sweep the download mobile phone and telecommunications networks
Shanghai force new policies to support the new energy automotive industry will exceed expectations

http://auto.hexun.com/2014-11-15/170421000.html

Comments mail correction
2014-11-15 00:35:00 Source: Shanghai Securities News

? ? editing reporter Qiu Jiang Song Weiping

Zhengbao reporter recently learned from informed sources, the Shanghai municipal government and relevant departments are to perfect an amendment to the relevant supporting policies and new energy vehicle charging facilities. On the whole, support will be greater than the current policy.

According to the Shanghai new energy vehicles to promote the program, 2013 to 2015, Shanghai will achieve 13,000 new energy vehicles to promote the application of the goal. Infrastructure, new types of charging pile 6000 or so. As of the end of October this year, the Shanghai New Energy car ownership as 6091, charging pile 2500 or so.

More than half the time, the task was not more than half. In order to increase the intensity of the new energy vehicle development, Shanghai is full force from policy to technology to get rid of obstacles to development of new energy vehicles.

The introduction of a comprehensive social capital Breakout

The first is policy. An insider told reporters that by the end of 2014, Shanghai had expiring series of new energy vehicles for support policies. Currently, Shanghai is to modify and improve on previous policies, such as for charging cell pile into bottlenecks encountered, is conducting targeted research. As for the charging infrastructure investment subsidies, intensity will be greater than Beijing and other places, more than 30%.

In addition to increasing support, the Shanghai district level of government is also actively involved in the introduction of social capital charging facilities. On the 13th, Shanghai Songjiang's first super-intelligent charging station was completed. The charging station construction by ??? Investment Group, which is currently Shanghai's first solar-smart investment in social capital building super charging stations.

Deputy director of the Shanghai Municipal Commission by letter Ma Jing told reporters on the Shanghai Securities News, Shanghai market operation has several charging stations, located in Jiading, Jinshan and other places. And before the difference is Songjiang super charging station using solar energy, while several other countries are using electricity grid.

??? Shanghai Songjiang District, in cooperation with the government, are exploring a new form of cooperation between business and government. According to reports, a total investment of Matsue said charging stations for 500,000 yuan, the price per unit of electricity for 2 yuan more than initially expected seven years can recover the costs. Operations in the future, will reflect the highly intelligent, remote, network characteristics.

Ma Jing said that Shanghai plans to build 6000 to 2015 charging stations in the future as the policy intensified, the relevant standard unified, post-progress will be accelerated.

China's leading global charging standard

If the policy is the development of new energy industry boosters, that technology is the core driving force of the entire industry, the rapid advance. Fortunately, Shanghai enterprises in the technology field charged, have been walking in the forefront of the world.

Sai Tekang Group Songjiang building super smart charging stations, photovoltaic power generation is a major part. Reporters on the scene within a new charging station, completed four electric car charging pile is installed charging stations at the top is covered with a layer of solar photovoltaic panels.

According to reports, this 10 kilowatts of photovoltaic power generation system, under normal circumstances, issued every day to meet the electricity needs of 2.5 charging electric vehicles. At the same time, the charging station is running and power grid, solar photovoltaic electricity if insufficient, the system will automatically switch to the power grid.

The other big special super-charging station is in charge on the basis of criteria developed countries, the three mainstream cars can be applied simultaneously, which can be produced in different regions of the different new energy model for charging. National Development and Reform Commission believes that this is the first time the Chinese charging standard ahead of other standards, has become the world's charging standard possible.

Sai Tekang Group President ?? on zhengbao reporters that before the end of this year, the company will continue to build charging stations in 5-10 seat similar Songjiang, next year plans to build 50-100 National Public super charging stations. Among them, the company also plans to invest 10 million, in Beijing to build the country's largest super-intelligent solar charging station, which is expected to include 100 charging stations charging piles.
(Editor: HN022)

Others that were at the meeting......


PD and I spent an extra two hours with him after the meeting. The first hour with Patrick Ko present which included lunch, the last with just the two of us, Kewa and Mr. Hu. I can assure you his attitude is rapidly changing toward what is needed from the US public company side. Amazingly, Ko's attitude was also in synch that KNDI has now grown well beyond any future services that his firm can provide and seems to sincerely claim he is very content in the matriculation of KNDI into that of a serious "Wall Street Darling" and was only at the meeting as a "proud" shareholder expecting to make a "fortune many times whatever fees he received in the past from his sizable share position".

I think what investors here need to understand is that this meeting was hurriedly put together after Mr. Hu was "tapped" by the Government contingent to come to the states to investigate Tesla. The last thing Mr. Hu needed was to be away from Hangzhou at this time of the year, but as he said; "When they asked me to join them, I could not say no." (stands to reason since he is the PRC "expert" in EV's going back to the 863 Project in 2002). According to Kewa, it was Mr. Hu's idea to just do a small "Meet & Greet" with any shareholder or analyst that might want to meet with him while on this other visit. His intention for an actual Analyst SH day was to have it in NY after the first of the year. That is the main reason why he didn't bring along his CFO. Secondarily likely due to the statement he made about bringing in a more US oriented new CFO in the near future.

Notes

Mr. Hu was extremely passionate about the future of the company, while also acknowledging that there had been certain missteps, and that growth isn’t ever as fast as one would like. He painted a very promising picture of what’s to come in 2015, including more cities, stronger government support, and definitely a broader product portfolio.


As for specific details, there wasn’t too much new, but he did expand on the following:


· Answering the very first question of the day, which was ‘how much is Kandi owed by the government’, he announced that on 11/7 when he departed for the States, he received word that the Q2 subsidy reimbursements had been paid to the local level, so he expects them to make their way to Kandi soon. 200rmb was the amount ($30M+).

· Kandi is working with Tianning Power (the largest battery producer in the country) to co-develop new battery technology that will be used first in the Cyclone to be release in the first-half next year. Without going into specific technology details before they’re public, he did say say that it’d have half the cost and twice the life of the existing technology.

· Kandi wouldn’t be increasing its investment in ZZY, since now that ZZY is not using nearly as much capital to build out garages, other investment funds are supplying their capital needs.

· As expected, regarding the Tesla meeting, the Chinese govt officials he accompanied had extended him an invitation that he couldn’t very well refuse. They had a productive meeting discussing battery technology, etc. He did not meet with Elon Musk.

· On Hangzhou subsidies, he was upbeat about it, saying that they are still in negotiations with the city around the details. He confirmed that the city would not be providing reimbursement at the individual vehicle unit level, but rather to ZZY/Kandi for the entire micro-bus program. And said, ‘So, if we deliver 1000 vehicles, as an example, they’d reimburse us for that, instead of car by car.’ He also add that other cities were looking to follow that structure.

· Urban Beauty and City Cowboy are to be launched in first half of 2015, and that their delay had been that Li Shufu thought their interiors weren’t up to international standards for technology and build. That brought up a question as to whether he had thoughts of export at some point, and he said yes (others may have a different recollection of the detail on this one).

· There were many questions around the currently production capacity, his ability to forecast, etc., and his comment was that, “within 2-3 years I believe we can become a ‘real car company’. He further clarified this by saying that this meant a run rate of 200,000 cars per year.

· He made several references to future government support, comparing the past year when ZZY and Kandi had expended so much of their own capital to build out infrastructure, etc. to a new national policy where the government would actually be providing/funding infrastructure. This seems to align with certain announcements we read from China around a renewed level of focus around support for green technologies, infrastructure development, etc. It was during this thread that he mentioned Wan Gang holding a future EV conference where policy changes would be announced. He didn’t say when. Again, others can weigh in on this.

· Reiterated that of the 86 cities that the PRC has designated as pilot cities, 2/3 have come to Kandi to discuss working together. He added that unless they provide funding, real estate, and favorable policies, he won’t work with them.


I would put the attendance at 75-80 people or so, maybe 100. From the questions that were asked (people asking questions were asked to identify themselves), it appeared that there were a few folks from retail money management firms, but I didn’t see any large institutional folks. On that point, Mr. Hu said he did expect that as they get larger, they’d be more interesting to larger I-banks. I personally asked him if when the time comes to raise additional capital, he’d be open to engaging a larger, more well-known global banker, and he said yes he’d be open to that.


A couple of times during the meeting he asked for suggestions and feedback from everyone in the room, and people had plenty to say about IR, transparency, the auditor, clarity in financials, holding conference calls, PR’ing the expected earnings release date, and much more.


On the auditor, one attendee, who certainly appeared to be a short, hit him pretty hard on Albert Wong. Mr. Hu gave what I thought was an honest answer that thus far, 1) he was satisfied with their work, 2) while Wong had represented several clients who had been delisted, they themselves had never run afoul of the SEC, and 3) frankly he hears lots of negative sentiment about the Big-4 in China. This was one example where he clearly opened it up to the crowd for input on what they should do, saying that it’s tough to satisfy investors on this point.

Notes

Hu spent quite a bit of time talking about batteries. When at Tesla he asked many questions of them about batteries. For instance, Tesla (I think I've got this right) guarantees 10 years of battery life. Mr. Hu kept asking them about that and finally got out of Tesla that a single battery is not guaranteed for 10 years but, rather, that Tesla will guarantee 10 years of battery for your car by replacing the original battery if necessary. Of course, Hu said the battery is THE MOST important part of an EV.


Kandi has been working hard on a new Battery Management System (BMS). He did not really elaborate but I got the sense this is really a big deal for him and KNDI. This might be something to keep our eye on.


The new Cyclone is scheduled to be rolled out 'soon' - whatever that means. As announced earlier, it has a different battery than the two-door and four-door models now in use. I wrote down six items about this new battery that Hu mentioned:

1. It is safer

2. It lasts twice as long (Not sure if he's talking mileage or time, perhaps both together)

3. It costs less - perhaps 1/2 the price

4. This battery is being developed exclusively for KNDI

5. It has 36 patents

6. This will be a revolution for EV cars

Notes....

Some questions were raised about Kandi's ability to fill demand when it ramps up. Mr. Hu mentioned how for 2015 there will 500,000 EV's on the road and 5,000,000 in 2020; he said he was confident those numbers will be met. I think there were those in the audience who (myself included) doubt that those numbers will be met. But Mr. Hu exuded both in words and manner that, yes, the numbers will be met. I'm inclined to accept Mr. Hu's assessment because I figure he knows something we don't but is not ready to make whatever it is he knows public.


I think KNDI is supposed to have a capacity of about 400,000 cars by the end of 2015 but, believe it or not, if I caught his drift correctly, Hu thought that would not be enough capacity for the future. He said again that cities will have a transportation revolution.


Now, by all accounts, from those who went to China in September and for those who attended today's conference, Mr. Hu displays quiet but strong confidence and determination about the future; there is no bravado a la Elon Musk. At the beginning of the conference he said he wanted to talk to us as family. It sounds a little corny to us but I think this is a Chinese mindset; he said he wanted to be open and honest with us. With all of this in mind I have to accept his capacity comments at face value.

Tianneng Power Jointly Announces a New Technology for Electric Car Motive Batteries with Six Electric Car Manufacturers Including Geely and Kandi

http://www.tianneng.com.hk/html/media_details.php?id=242704

Recently, power and auspicious days to Condi, Shandong Tang Jun, China Ordnance Equipment Group North Easy Company, Shandong Haoyu, MG Road, Jiangsu, Fu Road Group jointly released three new electric vehicle battery technology. Overview of the development of China's new energy automotive industry, the battery has become a bottleneck restricting its development. The day of the launch of three new batteries to power a new generation of lead include carbon super batteries, graphene and long-life lithium manganese-based cloud battery, which will be followed by three new products for use in electric vehicles.

Day to power has been guided by the market, compared with developed market demand for high energy, affordable, safe and environmentally friendly battery, the launch of three new battery, possess these characteristics. Days to research and development of high-magnification lead carbon batteries, lead-carbon batteries in the original technically improved, so that the battery life of more than 800 times the loop, one charge mileage can be increased to 280 km, and with fast charging capability, the fastest energy within 1 hour 95% of the battery is fully charged. Days can lead charcoal super battery, the first half of 2014 has given wind, Jiangsu cars Chery and the use of technology, is the first day to the commercial production of lead-carbon battery businesses.

The launch of the graphene manganese-based lithium battery, compared to the ternary materials and lithium iron phosphate technology has obvious advantages in terms of cost and safety. According to Dr. Sun Wei dean day to power lithium Institute revealed that graphene manganese-based lithium battery with high energy density, high power density, high security three major advantages. Since the source of manganese material widely, production costs than ternary materials and lithium iron phosphate is low, and the loop life can reach 1500 times, mileage close to 500 km, days can power lithium battery production has begun on Condit and other electric cars use.

Meanwhile, the company also announced the size of this year's newly acquired controllable method for producing nano-FePO4, the use of hot water microemulsion assisted Preparation of Nano LiFePO4, preparation of lithium nickel cobalt manganese vanadium oxide electrode materials three national invention lithium battery technology patent. These new technologies and patents is important to improve battery performance, the company will choose the mass market when conditions are ripe.

Things technology with the integration of cloud battery technology by incorporating smart chip in the battery, the battery and smart phones and the Internet interconnection achieve battery remote sense, timing locate, track search and other functions. Cloud battery technology to meet current consumer demand for battery Wisdom cultivate good habits of consumers using the battery, improve service quality, reduce electric car theft occurs, with good social and economic benefits.

In the conference, China Battery Industry Association, China Chemical and Physical Power Industry Association vice chairman Wu Feng made a concluding comment, affirmed the outstanding contribution to the day to power as battery technology advances made, he also said that China's new energy automotive industry this year showed a rapid development momentum, especially the rapid growth of urban micro-electric car. As the core parts of the battery electric vehicles, will directly affect the performance of electric vehicles and consumer experience. Days to lead the development of high-magnification carbon super batteries, graphene-manganese-based lithium battery, electric car battery long life cloud, to lead the development of the battery industry and technology, is the gospel of the electric vehicle industry is bound to accomplish a great deal in the future electric vehicles will be.

The new energy battery technology conference also attracted the attention of international capital markets, more than 60 investors and the Hong Kong media to listen to the meeting process. Day to power the future will increase the resources tilt, focus on the development of electric car batteries, lithium batteries and recycling business, the company's product mix qualitative change in five years.

CC......Power Point....

https://www.sec.gov/Archives/edgar/data/1316517/000106299314006464/exhibit99-1.htm


BULL

Harvey - answers in red below...

How our Kandi Technologies(We) makes money. Please let me know if I've had this right:

Kandi Technologies sells parts to JV............we make 50% of the profits 100%
JV assembles the car and sells to ZZY.........we make 50% of the profits Yes
ZZY runs CarShare .............................. ....we make 9.5% of the profits Yes

So, for every car on the road... We made money 3 times. (if each is profitable) Yes!

Also, I was wondering about pricing.
We are the sole vender of the parts.
JV is the sole car distributer to ZZY.
ZZY is the only segment that derives income from the general population.
Therefore, how is the pricing of the parts and then the assembled cars determined? see below

Who gains the government subsidies? ZZY
Is it ZZY? They are the buyers. Yes
Is this why they can rent so inexpensively? Yes
Can We adjust pricing to move profitability between segments? see below

Pricing decisions are not revealed publicly so all we can do is reason. Mr Hu created the 3 entity business model consisting of Kandi, Kandi JV and ZZY. Mr Hu manages this 3-entity business. Pricing decisions must be a win-win for Kandi and our partners in the Kandi JV and ZZY. Prices naturally rise to what the market can support so we must start with ZZY. As EV acceptance and performance increases we can expect ZZY to increase leasing and rental fees in the future. Right now ZZY is a start-up and not profitable, but is probably satisfied to break even and is more focused on future profitability which promises to be huge. I would therefore reason that EV prices to ZZY can rise to a level above the sum of PRC and local subsidies - a level that causes ZZY to break even. I would expect that there are some governing conditions in the Kandi JV / ZZY contract. I would expect that the Kandi / Kandi JV contract allows Kandi a reasonable margin on Kandi manufactured parts and guarantees that Kandi is the sole supplier of certain parts. If EV selling prices rise to what the market can support, I would expect the Kandi JV to be the beneficiary of any additional profit. This would best serve Kandi's interests since its future value will largely be based on its 50% ownership of the Kandi JV. All explained without facts and numbers - the best I can do :)

2-14 times sales seems to be the norm....

I fully understand the differences in all 3 companies.

BYD...

Valuation Measures
Market Cap (intraday)5: 113.47B
Enterprise Value (Nov 11, 2014)3: 119.68B
Trailing P/E (ttm, intraday): 1,437.88
Forward P/E (fye Dec 31, 2015)1: N/A
PEG Ratio (5 yr expected)1: N/A
Price/Sales (ttm): 13.89
Price/Book (mrq): 28.23
Enterprise Value/Revenue (ttm)3: 14.21
Enterprise Value/EBITDA (ttm)6: 174.68

TSLA

Valuation Measures
Market Cap (intraday)5: 31.01B
Enterprise Value (Nov 11, 2014)3: 30.43B
Trailing P/E (ttm, intraday): N/A
Forward P/E (fye Dec 31, 2015)1: 80.81
PEG Ratio (5 yr expected)1: 4.20
Price/Sales (ttm): 12.38
Price/Book (mrq): 31.65
Enterprise Value/Revenue (ttm)3: 10.65
Enterprise Value/EBITDA (ttm)6: 398.66

Based on what metrics, and what comparable EV company. One must consider the growth aspect of the company and some well known facts.
Kandi's capacity is around 300k EV's a year right now, 500k coming. China has mandated EV buying and backed it up with 65 billion going forward. License plates, subsides,charging stations build out and cash for clunkers program.....

Was your post a misstatement ......

Lets look at current metrics on 2 other EV plays....

12-14 times sales seems to be the norm....

I fully understand the differences in all 3 companies.

BYD...

Valuation Measures
Market Cap (intraday)5: 113.47B
Enterprise Value (Nov 11, 2014)3: 119.68B
Trailing P/E (ttm, intraday): 1,437.88
Forward P/E (fye Dec 31, 2015)1: N/A
PEG Ratio (5 yr expected)1: N/A
Price/Sales (ttm): 13.89
Price/Book (mrq): 28.23
Enterprise Value/Revenue (ttm)3: 14.21
Enterprise Value/EBITDA (ttm)6: 174.68

TSLA

Valuation Measures
Market Cap (intraday)5: 31.01B
Enterprise Value (Nov 11, 2014)3: 30.43B
Trailing P/E (ttm, intraday): N/A
Forward P/E (fye Dec 31, 2015)1: 80.81
PEG Ratio (5 yr expected)1: 4.20
Price/Sales (ttm): 12.38
Price/Book (mrq): 31.65
Enterprise Value/Revenue (ttm)3: 10.65
Enterprise Value/EBITDA (ttm)6: 398.66

The current number I use, and the one most often used when valuing an EV company such as KNDI, is 6 times revenue. That's if you want to use P/S as the only metric.

There are several other considerations, growth, PE, PEG, Assets, production capacity, and debt are just a few that should play into the mix...

BULL

Explain this to me....

Explain this to me....

frellgem explains it....


The Kandi we own stock in has three main functions (excluding the legacy recreational vehicle business)
- Design EV's
- Manufacture and procure parts to make the EV's, and sell them to the JV (also named Kandi), which our Kandi owns 50%
- Manage the JV, which assembles the cars, and ZZY, which buys the cars from the JV and runs the CarShare system and community leasing programs. Someday the JV may also sell or lease directly to consumers through Geely's 4S stores, but not yet. The JV may also someday make corporate fleet sales or sales to the government.

For now these are separate companies. They may merge some day, but for now our Kandi's revenues are from selling parts to the JV. After the JV sells the cars, we get 50% of the profits. This is how it has operated since Jan 1, 2014. The Kandi we own stock in is a parts company that also designs on the front end and manages the assembly and sales operations on the back end.

The parts have widely varied costs. The parts we manufacture have big margins. The electronic components and the batteries which we buy and pass along to the JV have a narrow markup. In quarters with large battery transfers, the margin will be lower.

Most of Kandi's profitability will eventually come from their 50% ownership of the JV. People who try to compare us to a typical car manufacturer are not making a valid comparison because we do not assemble or sell completed cars. The JV does that, and we cannot consolidate their operations with ours under accounting rules (must be over 80% or lower with qualifications).

This was a great earnings report! The two items that have spooked traders are easily explainable. The GP is low due to large number of batteries supplied to the JV with minimal markup, and the drop from 4,300 to 1950 JV deliveries was caused by a tax break policy that went into effect on Sept 1, thus killing July and August sales. They couldn't move all those 10K cars they produced in Q3 in Sept, which is understandable.

So the story is intact:
- Today they proved the JV can make BIG PROFITS on even minimal deliveries.
- Today we learned they are negotiating with FIVE MORE BIG CITIES
- Today we saw that Kandi can make operating profits in the parts business.
- Today we learned the Hu and Li have met with the highest echelon of China's gov't and anticipate MASSIVE growth as a result of some new initiative. (This is probably what Wan Gang was going to announce).

Just a little more TECO........

http://ih.advfn.com/videos/stock-research/my-movie-3-teco_E0vGLp38Nk8

And even more TECO.....

http://ih.advfn.com/videos/stock-research/my-movie-4-teco_JfoxVDCNG4E

BULL