kndi up 17% on Friday
"Look at that S car go!"
Hmm... I thought I had read something about this company previously, and being a china small cap recommendation, my "save others from fools advice" radar went off. So here is my 30 minutes of research... not sure if that compares to your years research....
First a quick search produced the following. http://chinainvestorking.blogspot.com/2011/04/fraud-corporate-governance-risk-model.html
This is a list of risk assements of chinese companies by mr. Rames from 2011 based on company structures and government arrangements. Funny thing is Rames is usually a proponent of chinese stocks. KNDI falls under the "High Risk" catergory, one above "Very High". Nearly all if not all of the "Very High" companies have since been kicked off the major exchanges due to fraud.
Next I looked up the SEC filings. First red flag I saw was many ammended 10ks and 10qs. Looking into the latest ammended 10k, one of the reasons for the ammendment: a change in the assement of Internal Controls. Shocker... The internal controls for this ammended filing were changed from being effective to non-effective. This is an enormous red flag.
Then I went looking for to see if there was existing research that I had thought I had seen previously. I found it on sharessleuth.com, a research form dedicated to investigating and reporting frauds (interestingly funded by Mark Cuban). Here is the orginal article http://sharesleuth.com/investigations/2011/05/kandi_technologies_corp_where_are_the_cocos
Here is another article they have since put out very recently (june 15th). The gist is KNDI is essentially misrepresenting the number of electric vehicles they are selling, and actually most of their sales came from gas powered vehicles. The new article is a shorter read and gets to the point, the original is more detailed.
I do agree on one point with the orginal poster, "I suggest those who might be interested to do their DD." Caveat Emptor
whoops forgot the 2nd article from sharessleuth posted jun 15th. http://sharesleuth.com/short-takes/2012/06/kandi-technologies-when-is-an-electric-car-not-an-electric-car
thanks for your post. i do appreciate posters here that show concern, red flags, for specific stocks which are talked about on this forum. none of us, including myself, want to be led down the grim path of destruction. My purpose, as per my previous post, was not to advise, but to share my DD very briefly and suggest to others that they do the same thing.if they have any interest in the EV (electric vehicle) programs going on now in China. i believe they will surprise some of you. Disclaimer: I am long KNDI in both stock and options.
so, re your post, i will now take the opportunity to share my DD and also try to address your DD.
I am a member of the KNDI group on yahoo.com (access: http://finance.groups.yahoo.com/group/kndi/ ). it is one of the more active stock groups on yahoo.com totalling about 330 members as of last week. Some are investors, some are traders, and some of course are "bashers" (the moderator, however, does a great job in deleting bashing posts which do not present any substantive information for the well being of the group. otoh if someone has something negative to say, backed up by linkable fact, it is published. Some members of the group have personally been to the plant in Jinnua China and have reported back to the group via narratives and photos what is taking place. Other members have published links from the chinese press and gov't releases which keep the members abreast of what is being talked about re EV news in china; including KNDI specifically. It should be noted that most of my DD comes from this forum. Other sources include numerous chinese newspapers, SGCC (china grid - 5th largest corporation in the world owned by the PRC which has a contract with KNDI re battery replacement patents), city of Hangzhou, city of Jinhua, and many other sources.
btw, it has just come to my attention that today KNDI was one of the highlighted stories on the "today show".
Let's address your concerns/red flags:
First a quick search produced the following.http://chinainvestorking.blogspot.com/2011/04/fraud-corporate-governance-risk-model.html
This is a list of risk assements of chinese companies by mr. Rames from 2011 based on company structures and government arrangements. Funny thing is Rames is usually a proponent of chinese stocks. KNDI falls under the "High Risk" catergory, one above "Very High". Nearly all if First a quick search produced the following.http://chinainvestorking.blogspot.com/2011/04/fraud-corporate-governance-risk-model.html
This is a list of risk assements of chinese companies by mr. Rames from 2011 based on company structures and government arrangements. Funny thing is Rames is usually a proponent of chinese stocks. KNDI falls under the "High Risk" catergory, one above "Very High". Nearly all if not all of the "Very High" companies have since been kicked off the major exchanges due to fraud.
not all of the "Very High" companies have since been kicked off the major exchanges due to fraud.
Never heard of this blogger. Nonetheless your inuendo, based on one sole opinion, of KNDI being in the "high risk" category of fraud possibility is unsubstantiated and blatantly not fair. Again, one man's opinion. FYI:
Report of Independent Registered Public Accounting Firm
We have audited the accompanying consolidated balance sheet of Kandi Technologies, Corp. and subsidiaries (“the Company”) as of December 31, 2011 and 2010 and the related consolidated statements of income, stockholders’ equity and cash flow for the years then ended. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
We were not engaged to examine management’s assertion about the effectiveness of the Company’s internal control over financial reporting as of December 31, 2011 included in the Company’s Item 9A “Controls and Procedures” in the Annual Report on Form 10-K and, accordingly, we do not express an opinion thereon.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Kandi Technologies, Corp. as of December 31, 2011 and 2010 and the results of its operations and its cash flow for the years then ended in conformity with accounting principles generally accepted in the United States of America.
Hong Kong, China/s/ Albert Wong & Co.March 30, 2012Certified Public Accountants
Next I looked up the SEC filings. First red flag I saw was many ammended 10ks and 10qs. Looking into the latest ammended 10k, one of the reasons for the ammendment: a change in the assement of Internal Controls. Shocker... The internal controls for this ammended filing were changed from being effective to non-effective. This is an enormous red flag.
the amended 10k had to do with transposing number of units in one category of gas powered vehicles to another. It did not affect sales at all. Much ado about nothing....shocker! it should also be noted that new procedures have been put in place to satisfy you.
RECENT ACCOUNTING PRONOUNCEMENTS
Recently Implemented Standards
ASC 105, Generally Accepted Accounting Principles (“ASC 105”) (formerly Statement of Financial Accounting Standards No. 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles a replacement of FASB Statement No. 162) reorganized by topic existing accounting and reporting guidance issued by the Financial Accounting Standards Board (“FASB”) into a single source of authoritative generally accepted accounting principles (“GAAP”) to be applied by nongovernmental entities. All guidance contained in the Accounting Standards Codification (“ASC”) carries an equal level of authority. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. Accordingly, all other accounting literature will be deemed “non-authoritative.” ASC 105 is effective on a prospective basis for financial statements issued for interim and annual periods ending after September 15, 2009. The Company has implemented the guidance included in ASC 105 as of July 1, 2009. The implementation of this guidance changed the Company’s references to GAAP authoritative guidance but did not impact the Company’s financial position or results of operations.
ASC 855, Subsequent Events (“ASC 855”) (formerly Statement of Financial Accounting Standards No. 165, Subsequent Events) includes guidance that was issued by the FASB in May 2009, and is consistent with current auditing standards in defining a subsequent event. Additionally, the guidance provides for disclosure regarding the existence and timing of a company’s evaluation of its subsequent events. ASC 855 defines two types of subsequent events, “recognized” and “non-recognized.” Recognized subsequent events provide additional evidence about conditions that existed at the date of the balance sheet and are required to be reflected in the financial statements. Non-recognized subsequent events provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date and, therefore, are not required to be reflected in the financial statements. However, certain non-recognized subsequent events may require disclosure to prevent the financial statements from being misleading. This guidance was effective prospectively for interim or annual financial periods ending after June 15, 2009. The Company implemented the guidance included in ASC 855 as of July 1, 2009. The effect of implementing this guidance was not material to the Company’s financial position or results of operations.
Here is another article they have since put out very recently (june 15th). The gist is KNDI is essentially misrepresenting the number of electric vehicles they are selling, and actually most of their sales came from gas powered vehicles. The new article is a shorter read and gets to the point, the original is more detailed.
Have you seen KNDI's latest income statement? i have. nowhere in that statement re sales does KNDI claim to have sold more EV's than gas powered vehicles. Please show me any reports where they have made these representations. Don't think you can. If you insist on putting up red flags it would be in all our interests for you to back them up with "facts".
Facts:
latest 10K (dec31,2011) - approx 15% of total sales revenue derived from EV's. Less than 3% than total number of all vehicles produced.
latest 10Q (mar 31, 2012) - no unit breakouts re sales. no published news reports re number of units of EV's sold for period ending 3-31-2012. My guess is about 200 for the quarter. could be a bit higher but not by much.
Lastly, KNDI EV"S are being sold in the US now. In Beverly Hills, Ca EV dealership.
In summary my DD is better than yours.....i welcome your response.
I've learned it is futile to discuss topics with cheerleaders and cultists. So I will respond only to further deter those from following advice from someone who has had an account on these boards since 09, but only came on to make one post to pump a stock he is long in.
Personally the last place when I look when I'm long on a stock is for the other people also positive for a stock.... that's how you start going delusional.
No I had never looked at the income statement for KNDI, because I could care less. The most important factor with U.S. listed chinese companies is whether they you can trust them, especially the balance sheet. I just did and it what I saw is they have a LOT of liabilities given their earnings and cash. About $50 mil in liabilities a year, when they are only making $3mil in profit and $5mil in cash. Hmm... how are they going to cover this? Almost perfectly when I went to look up the SEC filings again, what did I find? You guessed it a form S3 for a shelf offering of 2.5 million shares. Chug -a-chug-a-chug-a-chug-a-CHOO CHOO!! the chinese dilution train is leaving the station, get off before you get stuck. Not to mention they do everything in NON-GAAP numbers, which always makes me distrust the management, no matter what company it is.
"The Company reported that the top contributor to the revenue gains in the period was its all electric COCO LSV, with sales of 1,005 units, primarily in the U.S., generating $4,131,674 in revenues." from link below
http://www.marketwire.com/press-release/Kandi-Technologies-Achieves-80-Year-Over-Year-Increase-Revenues-425-Gain-Net-Income-NASDAQ-KNDI-1304890.htm
In this press release the company says they sold 1005 electric vehicles in quarter 2 for 2010. However in the 2010 10k they said they only sold 658 evs. THEY LIED! Also why do you think so many files had to be ammended to get this 10k filed, they had mistated for years how much revenue from ev's they were making. This is enough for me to STAY AWAY. I mean the whole point of the stock is the ev growth play, which isn't even that successful and they have to lie about the numbers.
Fool me once shame on you. Fool me twice shame on me.
Hopefully I can offer one word of advice that you will listen to. Do NOT average down to oblivion, it is the way disaster with any growth play, but especially this one.
Until you lose the pom poms and the rosy glasses, I know anything I say you will cast aside and spew more pumping. So it is better if I just let this die.
Firstly, the purpose of my original post was not to "pump" but to share a possibility with other investors on Tradeking. You, however, chose not to have a discussion on this company. Too bad and so sad. Your approach is to castigate w/o doing DD, teach others how not to read a balance sheet, have both retention and comprehension disabilities, and just outright lie.
I'll address some of your "conclusions" from your expert DD. They are:
1. $50 mil. in liabilities - It is common practice in China for companies to guarantee other companies debts. These debts, even though they are not yours, must be carried on the balance sheet for accounting purposes. The originators of these debts are called "friends" (people you do business with). When these debts by these "friends" are paid off to the bank the liability disappears ...if you knew anything about the business culture of China, knew how to read a balance sheet with accompanying notes, you would have done your DD on this matter instead of making yourself out to be the fool.
2. In my first response to you I indicated that KNDI now reports its financial data utilizing GAAP. I guess for you to both read and retain is too much of a burden.
3. 2.5 mil. shelf offering - Do you even know what a shelf offering is? Do you know why companies do it? I doubt it.
4. mistake on sales unit numbers - well you got this one half right. The number of EV units sold in 2010 was transposed from another column. Specifically, KNDI manufactures UTV's and ATV's (utility and off road vehicles). This is their legacy business. Some of these sales units were put incorrectly into the mini car column. It should be noted that the gross dollar sales numbers for the quarter and EOY reported was correct. An amended 10k was sent to the SEC to reflect this mistake...do you feel better?
The rest of your response is pure unadulterated "KAKA". And FYI: KNDI is now 3.64 (from 3.17). On July 10, 2012 the city of Hangzhou awarded KNDI a contract for 20,000 EV's to be delivered before the end of 2013. This contract is worth in excess of $150,000,000. Not bad for this small nondescript company. This news btw has not as of yet filtered its way down to the American media....who says I'm not a nice guy after all.
Lastly I would direct you to seekingalpha.com, which is known for its fairness in letting interested parties "discuss" listed companies. If you read the last topic ('numerous concerns outweigh KNDI's potential") a presumed investor guru, such as yourself, attempts to bash KNDI w/o substantive information. KNDI investors answer his lame post point by point. If you do take the time to read I'd love to hear your thoughts. At the very least the post will provide you with more than more than enough information to at least discuss KNDI with some intelligence.
Firstly let me devulge that I am long KNDI and am a member the the the kndi private message board. This board has been one of my primary sources of information in my constantly evolving DD re KNDI. Many other sources have also been researched by me in my quest to justify a fairly substantial position in KNDI. In all my years of being an investor/trader I have never been associated with a forum whose primary goal is to disseminate, to its members, honest, current and substantive information re a specific company. The "pumpers and dumpers" are in the minority and are discouraged from posting. I appreciate that. The openess of the forum encourages both positive and negative sentiments in a rational and productive way. I appreciate that too.
Now let me briefly share the overiding facts re my involvement with KNDI. They are:
1. The contractual relationship between KNDI and SGCC for the QBEX system. Simply put SGCC, fifth largest company in the world, has made its commitment to KNDI's patented battery exchange system their in actions and not words; read Marc Chang's comments. I'd be most interested for the OP to refute them.
2. The commitment of the PRC to go "green" in the automotive field is evidenced by:
a. Laying out a clear and concise strategy for the future of the automobile industry meeting the needs of a continuing emerging middle class in China (economists tell you the tipping point of consumer big ticket purchases is $5,000 in China). The understanding that current pollution problems in urban areas are getting worse, and the commitment to lessen the reliance on foreign oil (currently at about 50%).
a. Commitment of millions of dollars in subsides to encourage direct purchase and leasing of EV's by urban dwellers. Pilot leasing program in Hangzhou is set to charge $126.00 per month, including free battery exchange, for a period of three years.
b. Restriction of new car registrations, in designated Pilot Program areas whose engines are gas powered.
c. Restrictions, already in place, re cost of a "green" car being approved for government subsides.
c. KNDI, to my knowledge, is the only approved auto manufacturer approved so far in Hangzhou.
The OP, whose credentials as an analyst of KNDI is severely questioned, when he makes the statement that KNDI will not receive any more than the initial 100 car order in Hangzhou. It is not only irresponsible but naive. As Marc Chang rebuts, why would the SGCC invest millions in QBEX stations for just 100 cars. ...I would appreciate the OP's response to this. Also, why would the PRC make it's initial sales priority in going "green", to subsidize the purchase and or lease of a "green" car, with restrictions as to cost, for the pent up demand which is emerging in urban areas?. (Please note that KNDI is the lowest cost provider of "green" cars in China, to my knowledge. at this point in time; by a ratio of approximately 1:3 ($7,000 vs $20,000)...Again, I would appreciate the OP's response.
Instead of rehashing "old" refutable charges against KNDI by the questionable "bashers", let's talk about the changes which have occurred over the years which might lead some to alter their opinion of KNDI as one of many small Chinese company which are, in fact shams. The recent changes in reporting by the company come to mind. KNDI has adopted American Accepted Accounting Principles as their principal method of reporting financial data. As a numbers person I like that. It makes me more secure as an American investor. One must take into consideration that changes take time. Information from their Investor Relations Dept, until recently, has been like pulling hair from the head of a bald. man. They are now much more responsive to investor concerns. Changes, changes, changes, all for the good. One must understand clearly that Chinese culture is different than ours too; especially under a communist regime which has gone capitalist. Chinese companies have been reluctant to announce anything to the public without adhering to the protocols set in place by the government. What that simply means is that the flow of major informational changes is first announced by the government. I don't like it particularly but it is what it is. But overall I must say that KNDI is continuing to evolve as a company, to its credit, re American and international standards as to its business dealings and reporting...They've come a long way in a relatively short amount of time.
Read the "tea leaves" OP.
Closed at 3.75 today. The last serious "short" had 150,000 shares gobbled up in the the last 5 minutes of trading (238,00 shares today). This stock on;y has a 14 mil. float, and has only averaged about 60,000 shares per day (last 30 days). Wonder what the "short" must be thinking now. Well, he has the whole weekend to figure out something....Can't wait till it opens up on Monday.
FYI: At today's closing price it is estimated that the new contract ( 20,000 EV's ) will provide an additional .40 eps this year, and .80 eps in 2013. With its legacy business the eps for 2012 will be under a 7x multiple and for 2013 under a 4x multiple at today's closing price.. And that's not considering any other contracts which KNDI might get going forward. On August 10,2012 the city of Hangzhous (leading pilot program for EV's in China) will be hosting an EV EXPO. Many officials from other Chinese cities will be in attendance. Many international auto companies will also attend (as per media reports)....KNDI, fyi will put on a presentation of its patented QBEX system (quick battery exchange). It should also be noted that KNDI, as of this moment, is the only EV manufacturer of EV's in China approved for subsides by the PRC.
Summarily, If you have been cordial in your comments to me I would have been most willing to share my DD and would have answered any questions you might have had. This forum I thought was for discussion......not bashing.
Have a great weekend............
Why don't you have anything more to say? It's already been 16 days of deafening silence...
Your disappearance leads me to believe that you have taken the road of Mitt Romney. 'Hope" that nobody takes you to task for the things you represent and say....Chalk this up to "running into the wrong cowboy!" in the wrong place at the wrong time.
You should change you monniker from BIG to BINSG.
This post has now ended.....forever.....unless? Nah, won't happen.
The city of Hangzhou just signed a strategic cooperation agreement with Kandi Technologies (KNDI) and nine other companies to supply 20,000 electric vehicles (EVs) for the city's "pilot" EV leasing program. Kandi is the only EV supplier to take part; other companies involved will supply the batteries (Air Lithium (Lyoyang) Co. Ltd.) and charging by the local utility. The utility will fund construction of a charging and battery swap station network as well as paying for the batteries.
The batteries will serve a dual use for grid stabilization, or Vehicle to Grid (V2G) technology. The batteries will be financed by charges to electricity customers because of this dual use. So, in addition to this being the largest EV sale ever announced, the project is also effectively the largest scale trial of the use of EV batteries for V2G. V2G is a concept much talked about in academic circles, but so far if has only seen small scale pilot projects in the West. Part of the problem with implementing V2G is typically the split incentives between battery owners and the utility. Battery owners naturally worry about reduced performance of their very expensive battery packs if they are used for V2G. The Hangzhou project neatly avoids this conflict of interest because the utility owns the batteries, and the EVs are only available for lease.
Financial Impact for Kandi
The program will begin in August, and is scheduled to be completed by the end of 2013. We can expect Kandi to sell EVs at a rate of over 1000 per month during implementation. Kandi's revenues for each vehicle will be around $6800 per EV. Kandi's gross margins are about 25% on its existing off-road vehicle business, and observers of the company tell me Kandi would be unlikely to undertake a project if it earned substantially less than that. We can expect an increase in gross profit of about $1300 to $1700 per vehicle, or about $0.70 per share annual gross profit, most of which will flow through to earnings.
Kandi is already profitable, with trailing earnings of $0.20 per share (EPS), so we can expect total EPS for 2012 is likely to be around $0.40 per share, and EPS for 2013 is likely to be around $0.80 per share based just on this deal and zero growth in the company's existing business. The existing off road vehicle business has been growing rapidly, and additional EV orders seem likely, so $0.40 and $0.80 EPS in 2012 and 2013 should be considered a lower bound on earnings, which will most likely be higher.
China's Aggressive EV Goals
Kandi's rapid earnings growth could continue if Kandi manages to grab a decent share of the 500,000 EVs by 2015 and 5,000,000 EVs by 2020 goals set by the central government.
China is currently behind in implementing these EV adoption goals, largely because of the high cost of EVs from Kandi rivals such as BYD (BYDDY.PK), and lack of charging stations. The Hangzhou pilot project, with its rapid, utility-financed build-out of charging stations and inexpensive mini-EVs from Kandi seems designed to address both these problems.
Kandi's mini-EVs may be just what the Chinese government ordered.
Disclosure: Long KNDI
Disclaimer: Past performance is not a guarantee or a reliable indicator of future results. This article contains the current opinions of the author and such opinions are subject to change without notice. This article has been distributed for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.
This article was first published on AltEnergyStocks.com as Kandi Technologies Bags Largest Single Electric Vehicle Order Ever
Current Price: 4.17
The following two press releases just came over the wire.
Please also note that on August, 10, 2012 KNDI will be presenting at the Hangzhou EV Expo. In addition to its EV autos, KNDI will showcase its patented QBEX (quick battery exchange) system which has been adopted as the preferred charging method by SGCC (State Grid of ChIna which is China's largest utility) for EV's. Lastly, KNDI's new concept for city EV charging will be unveiled at the EXPO (stand alone parking facilities with recharging capabilities - "drop off and pick-up").
JINHUA, CHINA--(Marketwire -07/23/12)- Kandi Technology Corp. (the 'Company' or 'Kandi') (KNDI), a leading Chinese manufacturer and developer of pure electric vehicles (EVs) and all-terrain vehicles (ATVs), today announced that the Company's wholly owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. ("Kandi Vehicles"), has signed a framework agreement with the government of Weifang Binhai Economic Development Zone ("Weifang Development Zone") in Wei Fang City of Shandong Province, under which Kandi Vehicles intends to invest and establish a project company in the development zone that will have a capacity annually to produce key components and parts for 100,000 EVs (the "Project").
Shandong is the first province in China that commercialized EV and has the biggest EV market in China. Weifang Development Zone (http://www.wfbinhai.gov.cn) is a national level economic and technology development zone and a key automotive industry base approved by the National Development and Reform Commission. It is also the National Priority Area in Shandong Peninsula Blue Economic Zone and the Yellow River Delta Efficient Eco-economic Zone.
In order to gain market position for Kandi EVs in Shandong province and receive the support from the local government, upon the invitation of Weifang Development Zone, Kandi Vehicles has discussed and executed the framework agreement with Weifang Development Zone on July 13, 2012 after extensive discussion and negotiation between the parties. The main provisions of the framework agreement are as follows:
1. The Project is invested by Kandi Vehicles. The annual revenue of the Project is expected to be approximately RMB3 billion when it reaches its full capacity.
2. Weifang Development Zone will nominate the Project as one of the key projects to be supported in Shandong Province and will try to receive support for this Project under the provincial government's preferential policies.
3. Weifang Development Zone agrees to provide Kandi Vehicles 500 mu (approximately 333,300 square meters) construction land for project use at a favorable price.
4. Upon the completion of the Project, Weifang Development Zone will work actively to gain national, provincial and municipal supportive policies for the EV industry, and fully promote the use and acceptance of Kandi EVs in Shandong province. In principle, the government will have a special supportive policy for no less than 20,000 EVs every year.
5. The Project will receive local government tax incentive and preferential treatment.
6. The entire project is expected to be completed within 2 years as soon as Kandi Vehicles obtains the land-use right.
Mr. Xiaoming Hu, Chairman and the Chief Executive Officer of Kandi, commented, "Shandong provincial government's strong support is essential for Kandi to enter into the EV market in Shandong province. The practice is that local governments have various supporting policies for local companies, therefore the cooperation with Weifang Development Zone to establish a local project company will provide a firm foundation for Kandi to become the leader in the EV market in China. In the meantime, Kandi has full confidence that it will achieve success in the EV market in Shandong."
New Article from Forbes.com featured blogger Tom Konrad 7/23
Photos courtesy Tesla Motors
My friend and frequent electric vehicle (EV) critic John Petersenrecently worried that Tesla (NASD:TSLA) shareholders now buying the stock because of the launch of the company's new Model S were doomed to lose money, since the company is just entering the "trough of disillusionment," as shown in this stylized vies of the losses a company suffers in the Velley of Death from Osawa and Miyazaki.
Tesla and Kandi, shown on Valley of Death Diagram. Adapted from Osawa and Miyazaki.
Although Petersen is relentlessly negative on EVs, he has a great depth of experience with launching new technologies, and investors ignore him at their peril.
Fortunately, Tesla is not the only EV game in town, and there is another EV company at a much more auspicious stage of the product cycle. That company is Chinese mini-EV manufacturer Kandi Technologies (NASD:KNDI.) Incidentally, Kandi is the only EV company Petersen has ever written a positive article about.
Today, Kandi Technologies announced that they had signed a framework agreement with the government of Weifang Binhai Economic Development Zone in Wei Fang City of Shandong Province under which Kandi will build a factory in the Zone. The Zone will provide support in the form of infrastructure, promotion, and incentives in order to help the company sell no less than 20,000 EVs per year in Shandong Province. The factory will have capacity to manufacture key components of up to 100,000 vehicles per year, and is expected to be completed within two years.
According to Wikipedia, Shandong province is one of the most populous and affluent in China. Shandong is also new territory for Kandi, which recently signed a deal to sell 20,000 EVs for a leasing program in the city of Hangzhou in Zheijiang Province. More details of that deal emerged yesterday, when it was said (unfortunately in Chinese PDF only) that the order would proceed with 1000 EVs per month for September to December 2012, and 2000 EVs per month from January to August 2013. Since we can expect a gross profit of about $1300 to $1700 per vehicle, that's should amount to an additional $0.15-0.20 a share profit in 2012, and additional $0.60 to $0.80 cents a share in 2013.
The Kandi KD501 Mini-EV to be leased in Hangzhou. Photo by Marc Chang.
Kandi was already profitable on the basis of its growing off-road vehicle business. It earned $0.20 a share over the last 12 months with only minimal EV sales. With rapidly growing sales of EVs underwritten by Shandong and Hangzhou, Kandi has had the kind of help across the Valley of Death that Tesla can only dream of.
Tesla CEO Elon Musk may expect the company to sell 20,000 EVs in 2013, but such sales depend on fickle consumers. Analysts expect a loss of $2.44 a share this year, and a profit of only $0.63 a share next year. Further, it will cost you over $30 a share to buy TSLA, which has a book value of only $1.46 a share.
Meanwhile, Kandi already has an order to sell 16,000 EVs in 2013, and more are likely to follow. I expect the company to earn between $0.40-$0.60 a share in 2012, and $1.20 to $2.00 a share in 2013. It only costs $4.05 to buy the stock as I write (although the stock has been advancing rapidly on the recent news). Kandi's book value easily exceeds Tesla's at $2.14 a share.
So why is anyone bothering with Tesla?
Disclosure: Long KNDI.
As reported in my post of July 22, 2012 (just below*) the City of Hangzhou China will be hosting the largest EV Expo ever held anyplace in the world. Expectations are for 30,000 people in attendance, 1000 booths, energy officials from every major city in China, international representatives including every major international auto manufacturer, and even the City of San Francisco which will be signing a cooperation agreement with China to further their USA participation in EV's.
* Please also note that on August, 10, 2012 KNDI will be presenting at the Hangzhou EV Expo. In addition to its EV autos, KNDI will showcase its patented QBEX (quick battery exchange) system which has been adopted as the preferred charging method by SGCC (State Grid of ChIna which is China's largest utility) for EV's. Lastly, KNDI's new concept for city EV charging will be unveiled at the EXPO (stand alone parking facilities with recharging capabilities - "drop off andpick-up").
2012 China (Hangzhou) International New Energy Automobile Industry Exhibition Overview
Unfortunately I cannot cut and paste it for those interested in EV's because it is done in a pdf format. The link, however, to the article is:
http://f1.grp.yahoofs.com/v1/0JgZUBDJ60unbxo7-3K5VRM8MfOJzDDsLMVpXcJ58TIlC445IqCOPNMIROa5aUS9B9s4DU7CaZp8nxDOJUtCYtfkU1LKBFB5gXgosA/EV%20Article.pdf
'"Hopefully I can offer one word of advice that you will listen to. Do NOT average down to oblivion, it is the way disaster with any growth play, but especially this one."
fYI BTNSG: I have not averaged down to oblivion......
Original thread June23,2012 - KNDI closed at 3.17 (up 17% for the day)
Todays post - KNDI closed at 4.77
If that is oblivion hurt me over and over....a little levity is always good....
....Anyway, getting back to my real purpose here, today a recently made advisory
to clients by IPI was published today in seekingalpha.com.
Note: "Inflection Point Investing LLC is a Brooklyn-based Registered Investment Advisory firm serving high net-worth individuals and institutions.
>
> IPI offers managed account services, focusing on a diversified portfolio of companies experiencing important inflection points in their business models and technical stock formations.
>
> IPI is headed by John Henderson, formerly of Smith Barney, with over 18 years experience trading the markets, and 11 years experience as an independent trader and asset manager."
>
The following is the article in its entirety:
Why Kandi Is Poised To Become China's Electric Vehicle Market Leader
August 7, 2012
To many investors the notion of investing in Chinese equities remains anathema. At IPI, however, we have noted recent developments in the China space which suggest the emergence of some early "diamonds in the rough". After watching China mobile-media play, Kongzhong Corp. (KONG), double over the past six months, our interest in China was further piqued by the observation that noted short-seller, Citron Research, has dramatically backed away from shorting China stocks in 2012. In fact, Citron has actually gone as far as recommending Sohu.com (SOHU) on the long side. In Monday's trading, Baidu (BIDU), the China 25 Index (FXI), and Spreadtrum Communications (SPRD) each experienced significant accumulation, pointing to a major long-term bottom for these names. Perhaps the time has come to sift through the rubble?
Hoping to cull our search results down to one prime candidate, we screened for a Chinese company with the following sterling investment attributes:
A disruptive and differentiated technology, buttressed by a strong patent portfolio.
A secular opportunity being funded and promoted by the government.
A management team endorsed by the government, where the CEO has the ear and backing of government officials.
A partnership with one, if not two, of China's Fortune 500 companies.
A clean balance sheet with strong working capital, along with a capital structure that would not require substantial dilution.
A stringent list to be sure. After much due diligence, however, our search led us to the Chinese electric vehicle manufacturer, Kandi Technologies (KNDI). While Tesla Motors Inc. (TSLA) has become a media darling for its EV efforts here in the States, in China, Kandi has begun to garner positive press of its own. Let's discuss why.
In addition to landing a contract for its electric vehicles that would triple the size of the company, Kandi is also on the cusp of additional expansion and new contract wins in new provinces. Moreover, its partnerships with two Chinese Fortune 500 companies, the State Grid and the Aviation Industry Corp. of China, not only validate the company's IP and technology, they also position Kandi to receive an additional, high-margin revenue stream for its patented QBEX (Quick Battery Exchange) technology. As these positive events unfold, we feel Kandi has the potential to return both 60%+ by year-end and multi-bagger gains over the longer-term as it seizes market share and ramps to an annualized capacity of 100k electric cars by 2015.
To fully comprehend how Kandi has arrived at its current position of strength, investors should know that KNDI's CEO, Mr. Hu, has been strategizing for years with China's highest ranking government officials who have been tasked with the long-term planning of China's EV industry. In our view, most U.S. investors have overlooked this key element to the story.
Mr. Hu's long history with China's EV sector began when a government sponsored company, Universal Electric Motor Co., Ltd, initiated four electric vehicle projects in 2006. Mr. Hu spearheaded the very first project. His involvement with this early project allowed him to mold Kandi's business model and tailor it to the very same initiatives the Chinese government would eventually favor and endorse.
While many may scoff at the diminutive size of Kandi's EVs, the Chinese government considers these compact cars to be an optimal use of resources, while simultaneously reducing current traffic jams. In addition, it is important to understand Kandi's cars are just one cog in the planned EV eco-system in Hangzhou, the first pilot city for EV rentals. Consider that:
Kandi's partnership with State Grid is a centerpiece of Hangzhou's electric vehicle plans. The State Grid, China's second biggest utility, is responsible for the build-out of charging stations and the smart grid integration of the EV power supply.
Kandi has also partnered with Global Fortune 500 Company, the Aviation Industry Corp. of China (AVIC), in Hangzhou. AVIC's subsidiary, China Aviation Lithium Battery, will be responsible for producing automobile-use lithium batteries and for purchasing 20,000 EVs for personal leasing.
The Hangzhou municipal government will provide generous financial subsidies and also create policies to spur interest and demand for EVs.
Kandi has been tasked with supplying the 20,000 cars, with 1,000 cars to be delivered from September to December of this year and 2,000 cars in each of the first eight months of 2013.
Kandi has been diligently preparing for this moment since its formation in 2006. The company's most recent 10-k highlights many of the accomplishments achieved over the past 12 months. These include:
In August of last year, Kandi spearheaded a task force designed to study the feasibility of building a 100,000 pure EV rental network in Hangzhou City and the related supporting policies that would be required to make this a reality.
On February 29th of this year, the Ministry of Industry and Information Technology of China issued the "Energy-Saving and New Energy Vehicle Demonstration and Promotion for Use Project" list. Kandi's pure electric cargo vehicle, KD5021XXYBEV, was included on this list.
On March 6, 2012 the Ministries of Finance, State Administration of Taxation and Industry and Information Technology of China, collectively issued a list of Energy-Saving and New EVs which qualified for the Registration Tax Reduction and Exemption policy enacted earlier in the year. Kandi's EV was among the first vehicles included on this list.
In late May of this year, Mr. Hu presented his vision for a 100,000 Pure EV Network in Hangzhou. A key element of this plan involves a "smart" and automated parking system, which will be equipped with automatic charging stations. The fully integrated system will also supply maintenance of the EVs, parking, and an energy supply. Kandi has the patents for this plan.
Perhaps the most noteworthy aspect to this Pure EV Network plan is how little land will be utilized. Only 0.5 square meters of space will be required for each vehicle. This equates to 200 vehicles being able to park in 100 square meters of space.
Not surprisingly, Mr. Hu's vision was endorsed by various Chinese leaders, including Mr. Qingtai Chen, the former secretary and deputy director of leading Party group of Development Research Center of the State Council; Mr. Weidou Ni, president of the China Energy Society; and Mr. Yi Lin, Chairman of the New Energy Vehicle Co. of Beijing Automotive Industry Holding Company.
If you consider Kandi's momentum as it heads into this weekend's EV symposium, the partnerships it enjoys with two of China's biggest companies, and its central role in Hangzhou's EV development plan, it stands to reason Kandi will be the sole manufacturer of EV's for this program. Nonetheless, Kandi has yet to issue a definitive press release confirming the contract win for the 20,000 cars. Instead, a few weeks ago, the company issued a confusing press release stating it had secured a Letter of Intent to promote the rental of 20,000 EVs in Hangzhou.
Why would Kandi issue such an oblique press release for what appears to be its most important contract win ever? It made no sense to us, so we asked around. From what we could gather, this is a customary business practice in China when a partnership is struck between two companies of disparate size. In such instances, where a small company secures a contract win with a larger corporation, it is customary for the smaller entity to remain silent until the larger company has been able to announce the partnership first and enjoy the positive press of such a contract win.
With this being so, the next logical question that arises is when investors should expect Kandi to officially announce the 20k car contract in Hangzhou? While one might expect the company to announce the win at this weekend's EV Expo, Mr. Hu might consider it more prudent and respectful to delay the news until after the Expo is over. But however Mr. Hu elects to handle the situation, the news will need to emerge soon if Kandi is to stay in compliance with the SEC's Regulation FD, which mandates "full and fair disclosure." So, we believe confirmation of the contract win is coming shortly.
Thanks to Google and Google Translate, a few other discerning investors have been able to aggregate the important data and put the pieces of the puzzle together. Noted alternative energy blogger and Forbes columnist, Tom Konrad, is so confident Kandi will be the sole supplier of the 20,000 EVs, he has published three articles on Seeking Alpha detailing the significance of this contract win. Last weekend, electric vehicle and transportation Internet site, EV World, also confirmed that Kandi had secured the order.
While these columnists deserve credit for "breaking the news" on the contract win, we believe the true accolades should fall on the incredibly shrewd group of investors on KNDI's private message board. Over the past six months, we have quietly watched these sleuthing investors build a very credible case for Kandi and its chances for winning this contract in Hangzhou. Work well done gentlemen - our thanks!
In our opinion, two individuals deserve particular praise for their extraordinary efforts: Art Pocari and Marc Chang. While Art was too early to the story, you must give him credit for his confidence and perseverance in believing in Kandi. Marc Chang also deserves to be singled out for his impressive work on a four-part Kandi series published last December on Seeking Alpha. Marc's research was extremely thorough and his thesis on KNDI was both intelligent and perceptive. His four-part series is one of the first places new investors should go to perform their own due diligence on the name. A seminal piece of work, Marc. Well done!
Taken as a whole, it seems abundantly clear Kandi has been groomed to be China's electric vehicle "Golden Child". The smart money seems to concur, as KNDI's stock has risen to 52-week highs over the past two weeks. In our opinion, this is just the beginning of the move for KNDI. As mentioned earlier, we see 60% upside potential by year-end. While a $7.50 price target might seem lofty to some, consider these compelling reasons for our bullishness:
First, at around $6800 a vehicle, the total dollar value of the 20k EV Hangzhou contract amounts to $136 million. With Kandi's legacy business on an annualized run-rate of $45 million, this contract will immediately triple the size of the company. As such, the Hangzhou win will meaningfully accelerate Kandi's top-line and bottom-line numbers immediately in Q3. When these numbers are reported, they should show an almost 100% increase in the company's top-line to $18-$20 Million for the quarter and at least a tripling in underlying year-over-year profitability. Q4 should show about $30 Million for the quarter and a 400-500% increase in earnings growth year-over-year.
These eye-opening quarterly results will usher in the next round of institutional investors into Kandi's stock. This is where things should get very interesting. With only 30 million shares outstanding and just 17 million shares in the float, (Mr. Hu owns 43% of the company) new investors to the story will be forced to pay up for KNDI's stock. A move above all-time highs at $7.25 seems like a reasonable target by year-end. Take a look at the chart below. KNDI is currently breaking out of a Cup n Handle pattern, with the next logical price target the blue dotted-line around $7.25-$7.50:
KNDI 5-Year, Monthly Chart
(Click to enlarge)
Source: StockCharts.com
By December, institutional investors will be looking ahead to 2013, Kandi's break-out year. With 16,000 cars due to be shipped in the first eight months of next year, Kandi cannot help but demonstrate explosive growth next year. Tom Konrad thinks KNDI can earn $1.20-$2 a share in 2013. We are not going to argue with those estimates. Along the way, Kandi should also benefit from higher margins as the company ramps up production to 6,000 cars a quarter, beginning in Q1. Revenue should more than double next year to $150 Million. As is always the case with companies posting record growth, new institutional interest will swell in the name, pushing Kandi's stock into the low double-digits by next Spring-Summer. As this transpires, we would expect to see one or two analysts initiate coverage on the stock as well.
Assuming success in Hangzhou, Kandi should begin to land additional contracts for other EV programs by next year. This process has already begun, with the company recently landing a massive contract win in Shandong province for 20k-100k cars a year, beginning in late 2014. As we look ahead to 2014-2015, it does not seem unreasonable to expect KNDI to be able to ship 50k-60k cars in 2014 and 100k cars in 2015. One hundred thousand cars in 2015 could represent a 40% EV market share for KNDI.
While it is too early to know for sure what 2014-2015 holds for the company, from where we sit in 2012, we believe Kandi's potential is vast. If the company can execute and the government continues to subsidize the EV sector, KNDI could offer investors a 10-bagger return by 2015.
As with any stock, there are multiple risks. For one, China's government could pull back on subsidies if consumer demand for EV's does not materialize. There is also execution risk and timing risk. It has taken awhile to get to this point and there is no guarantee that the government will be able to get 500,000 EV's on the road by 2015. Having acknowledged this, we still like the risk/reward at current levels - downside seems very limited, while upside appears quite large.
It should be an eventful couple of years for Kandi and we look forward to being part of the ride.
Disclosure: I am long KNDI.
Btw, I have been informed that there will be multiple articles that will be published about KNDI in the coming days leading up to the Hangzhou EV Expo to take place from August 10-12....As reported earlier KNDI will be featured and I will personally be following the EXPO with great anticipation. I will report here events as they unfold.
Once again....can;t say it too many times....DO YOUR OWN DD.
Lastly, I would like to encourage any and all who have followed this thread to enter into the discussion....even the basher...haha.
Disclaimer: I am long KNDI stock and options
Date; 8/8
Time; 11:40 AM
Overview of today's morning action:
Opened strongly at 4.81 (+.040) on approx. 8k shares. Within the first half hour breezed upwards to 4.88. At 10am broke through some resistance to 4.90 and strongly moved up to 4.98 range on heavy volume. Heavy resistance at 5.00 but the demand was too great....It should be noted here that there is only a 14 mil. float in KNDI and most of the people I know are long-term and not traders.....So after the initial resistance at 5.00 in the second hour it went as high as 5.09. It now sits at 5.07 as there appears to be a momentary consolidation going on. The reason I say momentary is because, imo, based on the limited amount of shares available for trade because of expectations of "new" news from the Hangzhou EV EXPO which takes place from Aug.10 through Aug. 12th, and a . Another reason is that the Media is starting to tell the story of KNDI, not as a scam but as a legitimate risk versus reward equity....make no mistake, this company is speculative and will remain so until their promise is fulfilled by increasingly better bottom lines.
Volume has reached 305,000 at this time which is 2 1/2 times its normal daily volume based on the last 30 days. KNDI sits at 5.07.
As an aside I have just noticed 5 people have bought KNDI in the last week with 1 seller. Good luck to you. Me too! Hope the smiles continue as KNDI matures in the marketplace. I, for one, is betting on it.
My next post will be on August 10th where I will share any new updates, including articles and press releases....Please post here and let me know if some of ramblings have been helpful....Until....
Television Coverage:
Opening ceremonies, and more specifically KNDI, re coverage of its EV's, cost of rental (800 yuan = approx. $125.00 per month which includes free battery exchange for a period of 3 years) as reported by CTV Television. Also notice in the clip a white van also made by KNDI. If you go to the KNDI website you will see the complete line of EV's, from the KD5011 commuter EV cars to light trucks too. :
http://translate.google.com/translate?hl=en&sl=zh-CN&tl=en&u=http%3A%2F%2Fwww.cztv.com%2Fs%2F2010%2Fjingshixinwen%2Freplay%2F2012%2F08%2F2012-08-103514217.htm
Jiang City Times:
KNDI highlighted in article. Pics all over. Pay special attention to the the EV "parking garage" prototype to be built in major Chinese cities as a pick-up and drop-off charging and parking option. Each car takes up less than 5 meters. This concept is patented by KNDI.
[REVIEW] , deputy director of major projects management office of the Ministry of Science and Technology of electric vehicles Zhen Zijian, energy-saving and new energy vehicledemonstration and extension of the fairs held this morning, " stressed, "We have this ( new energy car show) can not be as before, we put up a stall, speech, and then stroll the landscape and leave Cleveland. We must build a city, corporate communication, led to procurement of bridge ... "According to reports, in the next few days, the 25 demonstration operating the city will at least reach 4000 new energy vehicles, the purchase contract.
Jiang City, the opening ceremony, photo
Electric car era of network news (reporter Jiang City first), August 10 0900, 2012 China (Hangzhou) International new energy automotive industry exhibition, the international new energy vehicles in China, the charge for electricity facilities and power battery & Exhibition of the second Hangzhou, China, the new energy automotive trade fair in Hangzhou Peace International Convention and Exhibition Center grand opening.
Jiang City, the opening ceremony, photo
The opening scene, the Standing Committee of the Chinese People's Political Consultative Committee, the Chinese Society of Automotive Engineers, vice chairman of the national "863 Program" energy-saving and new energy vehicles, major projects, the overall team leader, Ouyang Ming, Ministry of Science and Technology high-tech the Aguri Development Center deputy director of the Yuan Jianxiang, the leadership of the Ministry of Science and the Austrian Technology Development and Industrialization, Wu Ping, Director of Department of Transportation, Ministry of Science and electric vehicles in major project management office deputy director Zhen Zijian ministries He Zhongwei, Hangzhou City, Zhejiang Provincial Development and Reform Commission deputy director of People's Deputy Mayor Xu Wenguang, Zhao Ji, director of the Hangzhou Municipal Economic and Informatization Commission to provincial and municipal leaders, as well as brothers, the leadership of the city have to attend.
The opening ceremony was presided over by Li Qiang Yu, Deputy Secretary-General of the People's Government of Hangzhou, Hangzhou, leadership, CEC leadership, the leadership of China's industrial energy efficiency and cleaner production associations, ministries, leadership succession speech.Sunny site, more than 20 new energy buses parked in the square in front of the pavilion , and the scene is very spectacular, sweeping away the typhoon "sea anemone" the day before the impact on Hangzhou.
Outside the exhibition hall the most striking is this three-dimensional garage electric car era network with map
This exhibition period of three days, trade fairs and over the same period many activities is a model city to user needs (mainstream market at this stage), wiping station and product publicity supply parts resources a comprehensive display and integration, innovation and collaboration of universities and research institutions. investment institutions actively involved in the interaction of activities and industry event, the new energy automotive industry, eh, the most authoritative, most professional exhibition .
The leaders and guests visited the national grid robot for electricity demonstration Jiang City photo
According to reports, this exhibition Exhibits include a mainstream car prices, and battery electric vehicle industry chain upstream and downstream parts enterprises, with a total exhibition area of ​​20,000 square meters, more than 800 of the total number of booths, a total of BYD, Changan, JAC Brilliance, Dongfeng, Chery, Zotye, Condi, Yutong, Heng Tong Tong, dragon, CSR, Yi star vehicle manufacturers showcased 75 different types of new energy vehicles, CNAC lithium battery, universal, sophisticated electric , electric drive of Shanghai, CITIC Guoan MGL, Peking University in advance such as a number of related industrial chain exhibitors.
First photo displayed at the site BYD K9 electric bus Jiang City 
Parked at the scene of some of the new energy bus Jiang City, the first photo
Show the same period has also organized a series of closely related activities and development of the industry, including saving and new energy vehicle demonstration was held this morning, fairs, conference Hangzhou car JAC, Condi and Zhejiang Guoxin (car rental Co., Ltd.), Haikou Public Transport Group and Yutong seven pairs of partners signed a supply and demand docking protocol will also be held in the "new energy vehicles in China (Hangzhou) International development and market-oriented to promote the Forum", "2012 electric vehicle demonstration and extension and business seminar mode "," 2012 electric car the whole industry chain of investment and financing seminar ".On August 12, the more the country's first long-distance, many models of Hangzhou - Jiaxing results of electric vehicles Experience will be a strong starting, electric vehicle era network then will the whole follow-up reports, so stay tuned!
Condi electric vehicles parked at the scene first photo Jiang City
Part of speech given by the lithium battery provider in the Hangzhou EV Pilot Project:
Important Date to Keep in Mind:
On August 15,2012 KNDI will release its 2nd quarter earnings. I have run my personal numbers, which could be out in left field, but I will go out on a limb and estimate an EPS of .10 and a bottom line of $2.75 million. From my understandings the legacy business is doing extremely well.....We'll see.
All the above articles/film clips can be seen at the Yahoo KNDI Private Forum. The are many files that can be downloaded and numerous lnks to press releases, media releases, and web sites covering KNDI. The forum now has over 360 members who for the most part post intelligent discourse re KNDI. I use it as a primary source of information. If you have invested in KNDI you should too.
I will post further updates as they occur. If anybody here wishes to contact me with any questions re KNDI I can be reached at soonergold@gmail.com.
As I write:
a. discussions going on re flexible time leases (less than 3 years)
b. gov't consideration of lowering housing costs by up to
36% in monthly for lease participants
c. discussions going on with foreign and domestic EV manufacturers
re adoption of QBEX system
d. new lease option to include insurance - add'l $25.00 per month
e. KNDI now has 4 new EV car models, including 4 door sedan, but
will take a wait and see attitude re their release
The following are a couple of new articles with little bits of new information re current government policy, KNDI's now publicly presented three pronged strategy for growth, and new initiatives being discussed re China's EV direction for the future....Also a few great new pics.
First put 100 electric Car , the two Gate two, much like the "smart"
Fully charged, can travel about 100 kilometers, for Battery free
Rent of 1,000 yuan / month or so, usually one year, a sign, pay the compulsory insurance and other insurance has insurance
The end of the rental cars cute home
Managing Peace International Convention and Exhibition Center or visit www.hzddqc.com appointment registration
If you have already optimistic about the electric car, now, got it right. Yesterday, in the second session, Hangzhou, new energy vehicles trade fair site, Hangzhou electric vehicles Industrial Development Co., Ltd. officially announced: pure electric car rental Project began trial operation, can now accept all registration
Condi little power to run two two much like the "smart"
At the ceremony site, the reporter saw a pure electric vehicle models to be put on the market - Condi electricity to run. This is a Zotye and Condi cooperation production of pure electric vehicles, from afar, the model is very fashion, much like the rage Mercedes-Benz "smart" models. There are two doors of the body, which is only two seats, Lakaijumen into the car, the space is pretty good, all buttons work fine, the entire layout is not particularly fancy the part, apply a The ad is simple but not simple.
A live demonstration of a "Condi pure electric models, also used the pure Electric vehicle type, but it looks like you want The Bi Kangdi little power to run slightly upscale. The car is 4 4 shape inside the radio, Air conditioning outlet settings also appear to be more advanced. However, the company said, not to consider to put this model, preliminary consideration of the market, that is, Condi little electricity to run the future will be based on the test run, and then consider allocating more models.
The sources, the initial plan was to put 100 Condi electricity to run, If everything goes smoothly, then the end of August, the lease of the electric car will be able to into the hands of the people.
Grid points close to the charge exchange customers will be given priority in the rental right
Open electric vehicles, we are most concerned about is the power running out how to do, where to charge. The staff said that the car is not charging, just replace the battery. In other words, charging for fast, to Hangzhou layout grid point to replace the battery continued to travel, and a fully charged battery, you can travel about 100 km. However, this car is open, staff are very important to a reminder: This car is particularly suitable for urban travel, but if the temporary something you want to go to the field or run high-speed really inappropriate - after all, battery life, mileage is not long enough, only taken-for-power mode, went to the field or high-speed out of power is very troublesome.
Taking into account this problem, this time to accept that all registration set of principles: selection will be based on the chronological order of registration, as well as customers from the existing national grid charge-for-grid point distance. In other words, if you work in the vicinity there are charge-for-grid point, then you successfully apply for a lease of pure electric vehicles likely to be relatively large. The staff said that this is also considered from the perspective of a user-friendly, if one charge from the east of the city to the west of the city, the user is not.
Rent of 1,000 yuan / signed in a month or so general a year
As for the rent issue of concern to everyone. The initial consideration is, Condi small electric sports car type, one month's rent is about 1000 yuan, if after the launch of four the Condi pure electric and other four models, the rent will be higher than 1000 yuan. In addition, all users to change batteries, are free.
Unlike the introduction of Hangzhou existing short term rental business charges by the hour vehicles. The launch of electric vehicles is a long-term rental business year, a sign, at least half a year to sign. The company said that, long-term lease has many advantages, such as insurance, to pay compulsory insurance and other basic insurance companies are already saved, but if the customer demand, you can adjust the types of insurance, such as the increase in third party insurance, etc., short Rent is no way to operate.
The rental car had an accident how to do? In case of traffic violations, and who will bear responsibility? Maintenance or not the customer pay? These questions, the staff said the program is actually similar to the normal car rental: a traffic accident to my insurance company, the user can adjust the insurance products to their own expense; in case of traffic violations, point deduction and a fine, borne by the user; another normal vehicle maintenance, vehicle failure, do not require users to pay, if it is improper operation caused by the loss of vehicles, you need the user to pay.
The pilot promotion tactics electric vehicles into the home
Hangzhou pure electric vehicles, the private rental project test run today with the launchZhejiang town network August 11, 2012 Source: Zhejiang town network Author: Reporter Jiang Mingjing
Hangzhou pure electric vehicles, private rental project launching ceremony, the municipal departments of the leaders, business representatives cut the ribbon
This afternoon, the private rental projects of, Hangzhou pure electric vehicles test run in the new energy in the second session of the Hangzhou Peace Exhibition Centre car exhibition site was officially launched, the municipal departments of the leaders attended the ceremony, Hangzhou, electric vehicles Industrial Development Co., Ltd., deputy general manager Huang slaughter system The project was introduced.
"Test run in order to understand the needs of potential customers, collecting customer information, and do preparatory work for the formal large-scale promotion of electric car rental." Mr.Huang introduction, the first customers will be available according to the national grid charge exchange grid point of the situation, the principle of nearest convenient appointment intention to register customers select. "
Hangzhou electric vehicles Industrial Development Co., Ltd., deputy general manager Huang slaughter system to speak at the launching ceremony and introduced the project
It is reported that the lease try to run selected models for the Thai people and Condi production of pure electric car, the car together with the Air lithium high-capacity lithium-ion battery integrated national network of standard quick-change battery box, for electricity the way supplementary power. Vehicles to replace the battery charge for electricity network services provided by the national grid smart, every time you replace the battery in just 2-3 minutes, and refueling convenience, each for electricity and can travel about 100 kilometers.
On this test run to put the number of electric vehicles and rental, Mr.Huang said that companies need to statistical analysis of intention to customer information to determine. Access to relevant information, we will actively with the government and the national grid communication, providing information to increase the infrastructure supporting network, efforts to truly electric cars into the family of ordinary people. "
Start the ceremony, the two electric cars to demonstrate outside attracted a lot of public consultation, experience, rechargeable three-dimensional garage and a live demonstration of how it works: after the vehicle into the garage, just charging plug in electric vehicles, garage within the lift will transport vehicles to the layers of parking spaces. Mr.Huang disclose, which has over one hundred people to make an appointment enrollment electric vehicle lease program.
Field of new energy in the second session of the Hangzhou Auto Show, a row of Condi pure electric vehicles striking
Start the ceremony parked electric vehicles of different models to attract a lot of public
Staff to demonstrate within the electric vehicle
After the ceremony started, many people read carefully the electric car rental service guide
Rechargeable three-dimensional garage display area
"Got in touch with Kewa (IR) before the open. Jumped all over her about how confusing these latest two PR's were coming out before the "Roll Out" announcement. I told here people are going to think the 200 cars for the 20,000 car Hangzhou Lease Program. And it wouldn't surprise me if the stock went down this morning.
Kandi Signed Cooperative Framework Agreement With Zhejiang Guoxin Vehicle Leasing Company to Promote Self-Driving Pure Electric Vehicles Rental for Public Transportation in Hangzhou Project
08/13/2012 08:45:25 ETJINHUA, CHINA, Aug 13, 2012 (MARKETWIRE via COMTEX News Network) -- Kandi Technologies, Corp. (the 'Company' or 'Kandi') (NASDAQ: KNDI), a leading Chinese manufacturer and developer of pure electric vehicles (EVs) and all-terrain vehicles (ATVs), today announced that the Company's wholly owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. ("Kandi Vehicles") has signed a Cooperative Framework Agreement for the Promotion of Self-driving Electric Vehicle Rental for Public Transportation in Hangzhou Project ("the Project") with Zhejiang Guoxin Vehicle Leasing Company ("Guoxin Leasing") at the Energy Saving and New Energy Vehicle Demonstration and Promotion Forum of China International Green Vehicle Industry Expo (Hangzhou) ("Expo") held by EV Key Project Management Office of Ministry of Science and Technology of China on August 10th, 2012.
The strong support and effort of Zhejiang province and Hangzhou city governments to promote electric vehicle development in scale and establish Hangzhou as a role model city for electric vehicles in China provided this great opportunity to the parties to reach such an agreement.
The main provisions of the framework agreement are as follows:
1. Parties will cooperate according to The Feasibility Study of a Public Transportation Project of 100,000 Self-driving Rental EVs in Five Years in Hangzhou City by Development Research Center of the State Council of China, the China Society Of Automotive Engineers ("SAE") and Zhejiang University. Guoxin Leasing indicates that it intends to purchase Kandi brand EVs for such project. The parties have not established definite terms including price, quantities and time for delivery and these will be established by separate purchase agreements.
2. Parties intend to launch the preparation work for the Project immediately after signing the cooperative framework agreement. Guoxin Leasing will first purchase 200 EVs from Kandi Vehicles to launch the project, and the final terms and time for delivery have yet to be determined.
3. Kandi Vehicles will execute the production schedule based upon Guoxin's order and the requirements of the Project's development and will deliver the products in installments until the Project is completed.
4. At the beginning stage of the Project, Kandi Vehicles will have its technicians staying in Gouxin Leasing to provide timely technical support, repair and maintenance services.
Both Parties agree that they will value each other as a critical business partner and strike to achieve mutual development and maximum economic benefits through the cooperation on EV business.
This cooperative framework agreement is another significant step after Kandi Vehicles signed Cooperative Letter of Intent with China Aviation Lithium Battery Co., Ltd. to Promote 20,000 Pure Electric Vehicles in Hangzhou. If this project can be executed successfully, it will establish a strong foundation to advance the next five years of development for Kandi.
About Kandi Technologies, Corp.
Kandi Technologies, Corp. (KNDI) is a manufacturer and exporter of a variety of vehicles in China, making it a world leader in the production of popular off-road vehicles (ORVs). It also ranks among the leading manufacturers in China of all-terrain vehicles (ATVs), specialized utility vehicles (UTVs), and a recently introduced second-generation high mileage, two-seat three-wheeled motorcycle. Another major company focus has been on the manufacture and sale of the COCO electric vehicle (EV), a highly economical, beautifully designed, all-electric super mini-car for neighborhood driving and commuting. The convertible and hardtop models of the COCO EV are available in the United States and other countries, while the Chinese government has approved the sale of Kandi EVs in China since 2010. More information can be viewed at its corporate website is http://www.kandivehicle.com.
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